Senate Version Of The American Recovery And Revitalization Act Of 2009; Official Final Full Text, Bill Number H.r.1 For The 111th Congress

http://www.GovernorsLibrary.org Where Leading Minds Meet. Note: Senate struck much of it; Act as amended begins on Page 725. I

111TH CONGRESS 1ST SESSION

H. R. 1

IN THE HOUSE OF REPRESENTATIVES FEBRUARY 10, 2009 Ordered to be printed with the amendment of the Senate [Strike out all after the enacting clause and insert the part printed in italic]

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. 1Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3

SECTION 1. SHORT TITLE.

4This Act may be cited as the ‘‘American Recovery 5 and Reinvestment Act of 2009’’. 6

SEC. 2. TABLE OF CONTENTS.

7The table of contents for this Act is as follows: DIVISION A—APPROPRIATION PROVISIONS

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TITLE I—GENERAL PROVISIONS TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT TITLE III—COMMERCE, JUSTICE, AND SCIENCE TITLE IV—DEFENSE TITLE V—ENERGY AND WATER TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT TITLE VII—HOMELAND SECURITY TITLE VIII—INTERIOR AND ENVIRONMENT TITLE IX—LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS TITLE XI—DEPARTMENT OF STATE TITLE XII—TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT TITLE XIII—STATE FISCAL STABILIZATION FUND

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DIVISION B—OTHER PROVISIONS TITLE I—TAX PROVISIONS TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUG GLING FAMILIES TITLE III—HEALTH INSURANCE ASSISTANCE FOR THE UNEM PLOYED TITLE IV—HEALTH INFORMATION TECHNOLOGY TITLE V—MEDICAID PROVISIONS TITLE VI—BROADBAND COMMUNICATIONS TITLE VII—ENERGY

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SEC. 3. PURPOSES AND PRINCIPLES.

(a) S TATEMENT OF P URPOSES.—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 reces sion. (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. VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6411 E:\BILLS\H1.PP H1

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(5) To stabilize State and local government

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budgets, in order to minimize and avoid reductions in

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essential services and counterproductive state and

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local tax increases.

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(b) G ENERAL P RINCIPLES C ONCERNING U SE OF

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FUNDS.—The President and the heads of Federal depart-

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ments and agencies shall manage and expend the funds

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made available in this Act so as to achieve the purposes

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specified in subsection (a), including commencing expendi12 13

tures and activities as quickly as possible consistent with

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prudent management.

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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 G ENERAL.—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) P AY -AS-Y OU-G O .—All applicable provisions in this

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Act are designated as an emergency for purposes of

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pay-as-you-go principles.

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DIVISION A—APPROPRIATION PROVISIONS SEC. 1001. STATEMENT OF APPROPRIATIONS.

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The following sums in this Act are appropriated, out of

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any money in the Treasury not otherwise appropriated, for the

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fiscal year ending September 30, 2009, and for

other

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purposes. 12 13 14 15

TITLE I—GENERAL PROVISIONS Subtitle A—Use of Funds SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS.

Each amount appropriated or made available in this Act is in addition to amounts otherwise appropriated for the fiscal year involved. Enactment of this Act shall have no effect on the availability of amounts under the Continuing Appropriations Resolution, 2009 (division A of Public Law 110–329). SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES.

In using funds made available in this Act for infrastructure investment, recipients shall give preference to activities that can be started and completed expeditiously, including a goal of using at least 50 percent of the funds for

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activities that can be initiated not later than 120 days after

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the date of the enactment of this Act. Recipients shall also

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use grant funds in a manner that maximizes job creation

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and economic benefit. SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS.

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(a) FORMULA G RANTS.—Formula grants using funds

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made available in this Act shall be awarded not later than 10 11

30 days after the date of the enactment of this Act (or, in

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the case of appropriations not available upon enactment, not

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later than 30 days after the appropriation becomes available

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for obligation), unless expressly provided otherwise in this

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Act. (b) C OMPETITIVE G RANTS.—Competitive grants using funds made available in this Act shall be awarded not later than 90 days after the date of the enactment of this Act (or, in the case of appropriations not available upon enactment, not later than 90 days after the appropriation becomes available for obligation), unless expressly provided otherwise in this Act. (c) A DDITIONAL P ERIOD FOR N EW P ROGRAMS.—The time limits specified in subsections (a) and (b) may each

be

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SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANT EES.

(a) D EADLINE

FOR

B INDING C OMMITMENTS.—Each

recipient of a grant made using amounts made available in this

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Act in any account listed in subsection (c) shall enter into 7 8

contracts or other binding commitments not later than 1 year

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after the date of the enactment of this Act (or not later than 9

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months after the grant is awarded, if later) to make use of 50

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percent of the funds awarded, and shall enter into contracts or

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other binding commitments not later than 2 years after the date 13 14 15

of the enactment of this Act (or not later than 21 months after the grant is awarded, if later) to make use of the remaining funds. In the case of activities to be carried out directly by a grant recipient (rather than by contracts, subgrants, or other arrangements with third parties), a certification

by the

recipient specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this section. (b) R EDISTRIBUTION

OF

U NCOMMITTED FUNDS.—

The

head of the Federal department or agency involved shall recover or deobligate any grant funds not committed

in

accordance with subsection (a), and redistribute such funds to other recipients eligible under the grant program and able to

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make use of such funds in a timely manner (including binding

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commitments within 120 days after the reallocation).

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(c) A PPROPRIATIONS TO W HICH T HIS S ECTION A P-

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PLIES.—This

section shall apply to grants made using

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amounts appropriated in any of the following accounts

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within this Act:

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(1) ‘‘Environmental Protection Agency—State and Tribal Assistance Grants’’.

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(2) ‘‘Department of Transportation—Federal 12 13

Aviation Administration—Grants-in-Aid for Airports’’.

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(3) Railroad

‘‘Department

of

Transportation—Federal

Administration—Capital

Assistance

for

Intercity Passenger Rail Service’’. (4) Transit

‘‘Department

of

Transportation—Federal

Administration—Capital I n v e s t m e n t

Grants’’. (5) ‘‘Department of Transportation—Federal Transit Administration—Fixed Guideway Infrastructure Investment’’. (6) ‘‘Department of Transportation—Federal Transit Administration—Transit Capital Assistance’’. (7) ‘‘Department of Housing and Urban DevelVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6411 E:\BILLS\H1.PP H1

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opment—Public and Indian Housing—Public Housing

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Capital Fund’’.

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(8) ‘‘Department of Housing and Urban Devel-

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opment—Public and Indian Housing—Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofit’’.

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(9) ‘‘Department of Housing and Urban Devel-

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opment—Public and Indian Housing—Native American

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Housing Block Grants’’.

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(10) ‘‘Department of Housing and Urban De12 13 14 15

velopment—Community Planning

and

D evelop-

ment—HOME Investment Partnerships Program’’. (11) ‘‘Department of Housing and Urban Development—Community Planning

and

D evelop-

ment—Self-Help and Assisted Homeownership Opportunity Program’’. SEC. 1105. PERIOD OF AVAILABILITY.

(a) IN G ENERAL.—All funds appropriated in this Act shall remain available for obligation until September 30, 2010, unless expressly provided otherwise in this Act. (b) R EOBLIGATION .—Amounts that are not needed or cannot be used under title X of this Act for the activity for which originally obligated may be deobligated and, notwithstanding the limitation on availability specified in sub-

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section (a), reobligated for other activities that have re-

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ceived funding from the same account or appropriation in

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such title.

5 SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT.

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Unless other provision is made in this Act (or in other

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applicable law) for such expenses, up to 0.5 percent of each

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amount appropriated in this Act may be used for the expenses

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of management and oversight of the programs, grants, and

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activities funded by such appropriation, and

may be

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transferred by the head of the Federal department or agency

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involved to any other appropriate account within

the

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department or agency for that purpose. Funds set aside under this section shall remain available for obligation until September 30, 2012. SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL.

In addition to funds otherwise made available in this Act, there are hereby appropriated the following sums to the specified Offices of Inspector General, to remain available until September 30, 2013, for oversight and audit of programs, grants, and projects funded under this Act: (1) ‘‘Department of Agriculture—Office of Inspector General’’, $22,500,000. (2) ‘‘Department of Commerce—Office of In-

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spector General’’, $10,000,000. (3) ‘‘Department of Defense—Office of the Inspector General’’, $15,000,000.

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(4) ‘‘Department of Education—Departmental

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Management—Office

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$14,000,000.

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of the

Inspector General’’,

(5) ‘‘Department of Energy—Office of Inspector General’’, $15,000,000.

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(6) ‘‘Department of Health and Human Serv12 13 14 15

ices—Office of the Secretary—Office of Inspector General’’, $19,000,000. (7) ‘‘Department of Homeland Security—Office of Inspector General’’, $2,000,000. (8) ‘‘Department of Housing and Urban Development—Management and Administration—Office of Inspector General’’, $15,000,000. (9) ‘‘Department of the Interior—Office of Inspector General’’, $15,000,000. (10) ‘‘Department of Justice—Office of Inspector General’’, $2,000,000. (11)

‘‘Department

Management—Office

of of

Labor—Departmental Inspector

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General’’,

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2 (12) ‘‘Department of Transportation—Office of Inspector General’’, $20,000,000. (13) ‘‘Department of Veterans Affairs—Office of

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Inspector General’’, $1,000,000. (14) ‘‘Environmental Protection Agency—Office of Inspector General’’, $20,000,000. (15) ‘‘General Services Administration—General Activities—Office of

Inspector

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General’’, $15,000,000. 12 13

(16) ‘‘National Aeronautics and Space Adminis-

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tration—Office of Inspector General’’, $2,000,000.

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(17) ‘‘National Science Foundation—Office of Inspector General’’, $2,000,000. (18) ‘‘Small Business Administration—Office of Inspector General’’, $10,000,000. (19) ‘‘Social Security Administration—Office of Inspector General’’, $2,000,000. (20) ‘‘Corporation for National and Community Service—Office of Inspector General’’, $1,000,000. SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNT ABILITY OFFICE.

There is hereby appropriated as an additional amount for ‘‘Government Accountability Office—Salaries and Ex-

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penses’’ $25,000,000, for oversight activities relating to

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this Act.

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SEC. 1109. PROHIBITED USES.

None of the funds appropriated or otherwise made

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available in this Act may be used for any casino or other

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gambling establishment, aquarium, zoo, golf course, or

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swimming pool.

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SEC. 1110. USE OF AMERICAN IRON AND STEEL.

(a) IN G ENERAL.—None of the funds appropriated or

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otherwise made available by this Act may be used for a 13 14 15

project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States. (b) E XCEPTIONS.—Subsection (a) shall not apply in any case in which the head of the Federal department or agency involved finds that— (1) applying subsection (a) would be inconsistent with the public interest; (2) iron and steel are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or (3) inclusion of iron and steel produced in the United States will increase the cost of the overall project

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by more than 25 percent.

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(c) W RITTEN J USTIFICATION FOR W AIVER.—If the head of

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a Federal department or agency determines that it is necessary

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to waive the application of subsection (a) based on a finding

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under subsection (b), the head of the department or agency

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shall publish in the Federal Register

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justification as to why the provision is being waived.

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a detailed written

(d) D EFINITIONS .—In this section, the terms ‘‘public

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building’’ and ‘‘public work’’ have the meanings given such 12 13

terms in section 1 of the Buy American Act (41 U.S.C. 10c)

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and include airports, bridges, canals, dams, dikes, pipelines,

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railroads, multiline mass transit systems, roads,

tunnels,

harbors, and piers. SEC. 1111. WAGE RATE REQUIREMENTS.

Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40,

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United States Code. With respect to the labor standards

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specified in this section, the Secretary of Labor shall have

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the authority and functions set forth in Reorganization Plan

5 6 7 8 9 10 11

Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE OF FUNDS.

None of the funds provided by this Act may be made available to the State of Illinois, or any agency of the State,

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unless: (1) the use of such funds by the State is approved in 13 14 15

legislation enacted by the State after the date of the enactment of this Act; or (2) Rod R. Blagojevich no longer holds the office of Governor of the State of Illi nois. The preceding sentence shall not apply to any funds provided directly to a unit of local government: (1) by a Federal department or agency; or (2) by an established formula from the State. SEC. 1113. PERSISTENT POVERTY COUNTIES.

(a) A LLOCATION R EQUIREMENT.—Of the amount appropriated in this Act for ‘‘Department of Agriculture— Rural Development Programs—Rural Community Advancement Program’’, at least 10 percent shall be allocated for assistance in persistent poverty counties. (b) D EFINITION .—For purposes of this section, the

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term ‘‘persistent poverty counties’’ means any county that

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has had 20 percent or more of its population living in pov-

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erty over the past 30 years, as measured by the 1980, 1990,

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and 2000 decennial censuses. SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PRO GRAM.

None of the funds made available in this Act may be used to enter into a contract with an entity that does not participate in the E-verify program described in section

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401(b) of the Illegal Immigration Reform and Immigrant 13 14 15

Responsibility Act of 1996 (8 U.S.C. 1324a note). SEC. 1115. ADDITIONAL FUNDING DISTRIBUTION AND AS SURANCE OF APPROPRIATE USE OF FUNDS.

(a) C ERTIFICATION BY G OVERNOR.—Not later than 45 days after the date of enactment of this Act, for funds provided to any State or agency thereof, the Governor of the State shall certify that the State will request and use funds provided by this Act. (b) A CCEPTANCE

BY

S TATE 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. VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6411 E:\BILLS\H1.PP H1

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(c) D ISTRIBUTION .—After the adoption of a State legislature’s concurrent resolution, funding to the State will

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be for distribution to local governments, councils of

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government, public entities, and public-private entities

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within the State either by formula or at the State’s discre-

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tion.

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Subtitle B—Accountability in Recovery Act Spending PART 1—TRANSPARENCY AND OVERSIGHT REQUIREMENTS

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SEC. 1201. TRANSPARENCY REQUIREMENTS.

(a) R EQUIREMENTS FOR FEDERAL A GENCIES.— Each Federal agency shall publish on the website Recov ery.gov (as established under section 1226 of this subtitle)— (1) a plan for using funds made available in this Act to the agency; and (2) all announcements for grant competitions, allocations of formula grants, and awards of competitive grants using those funds. (b) R EQUIREMENTS FOR FEDERAL, S TATE ,

AND

LOCAL

G OVERNMENT A GENCIES.— (1)

INFRASTRUCTURE

INVESTMENT FUND -

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ING .—With

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Act for infrastructure investments to Federal, State, or

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respect to funds made available under this

local government agencies, the following requirements

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apply: (A) Each such agency shall notify the public

8

of funds obligated to particular infrastructure

9

investments by posting the notification on the

10

website Recovery.gov.

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(B) The notification required by subpara12 13 14 15

graph (A) shall include the following: (i) A description of the infrastructure investment funded. (ii) The purpose of the infrastructure investment. (iii) The total cost of the infrastructure investment. (iv) The rationale of the agency for funding the infrastructure investment with funds made available under this Act. (v) The name of the person to contact at the agency if there are concerns with the infrastructure investment and, with respect to Federal agencies, an email address for the

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Federal official in the agency whom the

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public can contact.

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(vi) In the case of State or local agen-

5 6

cies, a certification from the Governor,

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mayor, or other chief executive, as appro-

8

priate, that the infrastructure investment has

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received the full review and vetting required

10

by law and that the chief executive accepts

11

responsibility that the infrastructure 12 13

investment is an appropriate use of taxpayer

14

dollars. A State or local agency may not

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receive infrastructure investment funding from funds made available in this Act unless this certification is made. (2) O PERATIONAL FUNDING .—With respect to funds made available under this Act in the form of grants for operational purposes to State or local government agencies or other organizations, the agency or organization shall publish on the website Recovery.gov a description of the intended use of the funds, including the number of jobs sustained or created. (c) A VAILABILITY ON INTERNET OF C ONTRACTS AND G RANTS.—Each contract awarded or grant issued using

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funds made available in this Act shall be posted on the

3

Internet and linked to the website Recovery.gov. Proprietary

4

data that is required to be kept confidential under

5 6 7 8

applicable Federal or State law or regulation shall be redacted before posting. SEC. 1202. INSPECTOR GENERAL REVIEWS.

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(a) R EVIEWS.—Any inspector general of a Federal

10

department or executive agency shall review, as appro-

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priate, any concerns raised by the public about specific

12 13

investments using funds made available in this Act. Any

14

findings of an inspector general resulting from such a review

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shall be relayed immediately to the head of each department and agency. In addition, the findings of such reviews, along with any audits conducted by any inspector general of funds made available in this Act, shall be posted on the Internet and linked to the website Recovery.gov. (b) E XAMINATION OF R ECORDS.—The Inspector General of the agency concerned may examine any records related to obligations of funds made available in this Act. SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE RE VIEWS AND REPORTS.

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prepare reports on such reviews on the use by selected

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States and localities of funds made available in this Act.

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Such reports, along with any audits conducted by the

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Comptroller General of such funds, shall be posted on the Internet and linked to the website Recovery.gov. (b) E XAMINATION

OF

R ECORDS.—The Comptroller

General may examine any records related to obligations of funds made available in this Act.

11 SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS.

12 13

The Chairman of the Council of Economic Advisers,

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in consultation with the Director of the Office of Manage-

15

ment and Budget and the Secretary of the Treasury, shall submit quarterly reports to Congress detailing the estimated impact of programs under this Act on employment, economic growth, and other key economic indicators. SEC. 1205. SPECIAL CONTRACTING PROVISIONS.

The Federal Acquisition Regulation shall apply to contracts awarded with funds made available in this Act. To the maximum extent possible, such contracts shall be awarded as fixed-price contracts through the use of competitive procedures. Existing contracts so awarded may be utilized in order to obligate such funds expeditiously. Any contract awarded with such funds that is not fixed-price and

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not awarded using competitive procedures shall be posted

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in a special section of the website Recovery.gov.

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PART 2—ACCOUNTABILITY AND TRANSPARENCY

5 BOARD 6 7

SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND TRANSPARENCY BOARD.

8 9 10 11

There is established a board to be known as the ‘‘Recovery Act Accountability and Transparency Board’’ (hereafter in this subtitle referred to as the ‘‘Board’’) to

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coordinate and conduct oversight of Federal spending under 13 14 15

this Act to prevent waste, fraud, and abuse. SEC. 1222. COMPOSITION OF BOARD.

(a) M EMBERSHIP.—The Board shall be composed of seven members as follows: (1) The Chief Performance Officer of the President, who shall chair the Board. (2) Six members designated by the President from the inspectors general and deputy secretaries of the Departments of Education, Energy, Health and Human Services, Transportation, and other Federal departments and agencies to which funds are made available in this Act. (b) T ERMS.—Each member of the Board shall serve

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for a term to be determined by the President.

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SEC. 1223. FUNCTIONS OF THE BOARD.

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(a) O VERSIGHT.—The Board shall coordinate and conduct oversight of spending under this Act to prevent

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waste, fraud, and abuse. In addition to responsibilities set

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forth in this subtitle, the responsibilities of the Board shall

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include the following:

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(1) Ensuring that the reporting of information regarding contract and grants under this Act meets

12 13 14 15

applicable standards and specifies the purpose of the contract or grant and measures of performance. (2) Verifying that competition requirements applicable to contracts and grants under this Act and other applicable Federal law have been satisfied. (3) Investigating spending under this Act to determine whether wasteful spending, poor contract or grant management, or other abuses are occurring. (4) Reviewing whether there are sufficient qualified acquisition and grant personnel overseeing spending under this Act. (5) Reviewing whether acquisition and grant personnel receive adequate training and whether there are appropriate mechanisms for interagency

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collaboration.

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(b) R EPORTS.—

4

(1) FLASH AND OTHER REPORTS.—The Board shall

5

submit to Congress reports, to be known as ‘‘flash 6 7

reports’’, on potential management and funding

8

problems that require immediate attention. The Board

9

also shall submit to Congress such other reports as the

10 11

Board considers appropriate on the use and benefits of funds made available in this Act.

12 13

(2) Q UARTERLY .—The Board shall submit to the

14

President and Congress quarterly reports summarizing

15

its findings and the findings of agency inspectors general and may issue additional reports as appropriate. (3) A NNUALLY .—On an annual basis, the Board shall prepare a consolidated report on the use of funds under this Act. All reports shall be publicly available and shall be posted on the Internet website Recovery.gov, except that portions of reports may be redacted if the portions would disclose information that is protected from public disclosure under section 552 of title 5, United States Code (popularly known as the Freedom of Information Act).

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1 2 3 4

(c) R ECOMMENDATIONS TO A GENCIES.—The Board shall make recommendations to Federal agencies on measures to prevent waste, fraud, and abuse. A Federal agency

5 6

shall, within 30 days after receipt of any such rec-

7

ommendation, submit to the Board, the President, and the

8

congressional committees of jurisdiction a report on

9

whether the agency agrees or disagrees with the rec-

10

ommendations and what steps, if any, the agency plans to

11

take to implement the recommendations. 12 13 14 15

SEC. 1224. POWERS OF THE BOARD.

(a) C OORDINATION OF A UDITS AND INVESTIGATIONS BY A GENCY INSPECTORS G ENERAL.—The Board shall coordinate the audits and investigations of spending under this Act by agency inspectors general. (b) C ONDUCT OF R EVIEWS BY B OARD .—The Board may conduct reviews of spending under this Act and may collaborate on such reviews with any inspector general. (c) M EETINGS.—The Board may, for the purpose of carrying out its duties under this Act, hold public meetings, sit and act at times and places, and receive information as the Board considers appropriate. The Board shall meet at least once a month. (d) O BTAINING O FFICIAL D ATA.—The Board may secure

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1 2

directly from any department or agency of the United States

3

information necessary to enable it to carry out its duties under

4

this Act. Upon request of the Chairman of the Board, the head

5 6 7

of that department or agency shall furnish that information to the Board.

8

(e) C ONTRACTS.—The Board may enter into contracts

9

to enable the Board to discharge its duties under this Act.

10 11

SEC. 1225. STAFFING.

(a) E XECUTIVE D IRECTOR.—The Chairman of the

12 13

Board may appoint and fix the compensation of an execu-

14

tive director and other personnel as may be required to

15

carry out the functions of the Board. The Director shall be paid at the rate of basic pay for level IV of the Executive Schedule. (b) S TAFF OF FEDERAL A GENCIES.—Upon request of the Board, the head of any Federal department or agency may detail any Federal official or employee, including officials and employees of offices of inspector general, to the Board without reimbursement from the Board, and such detailed staff shall retain the rights, status, and privileges of his or her regular employment without interruption. (c) O FFICE S PACE.—Office space shall be provided to the Board within the Executive Office of the President. HR 1 PP

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1 2 3 4 5

SEC. 1226. RECOVERY.GOV.

(a) R EQUIREMENT T O E STABLISH W EBSITE .—The Board shall establish and maintain a website on the Internet to be named Recovery.gov, to foster greater accountability and

6 7

transparency in the use of funds made available in this Act.

8

(b) P URPOSE.—Recovery.gov shall be a portal or

9

gateway to key information related to this Act and provide

10

a window to other Government websites with related infor-

11

mation.

12 13 14

(c) M ATTERS C OVERED .—In establishing the website Recovery.gov, the Board shall ensure the following: (1) The website shall provide materials explaining

15

what this Act means for citizens. The materials shall be easy to understand and regularly updated. (2) The website shall provide accountability information, including a database of findings from audits, inspectors general, and the Government Accountability Office. (3) The website shall provide data on relevant economic, financial, grant, and contract information in user-friendly visual presentations to enhance public awareness of the use funds made available in this Act. (4) The website shall provide detailed data on HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

contracts awarded by the Government for purposes of

3

carrying out this Act, including information about the

4

competitiveness of the contracting process, notification

5 6

of solicitations for contracts to be awarded, and

7

information about the process that was used for the

8

award of contracts.

9 10

(5) The website shall include printable reports on funds made available in this Act obligated by month to

11

each State and congressional district. 12

(6) The website shall provide a means for the

13 14

public to give feedback on the performance of con-

15

tracts awarded for purposes of carrying out this Act. (7) The website shall be enhanced and updated as necessary to carry out the purposes of this subtitle. (8) The website shall provide, by location, links to and information on how to access job opportunities created at or by entities receiving funding under this Act, including, if possible, links to or information about local employment agencies; state, local and other public agencies receiving funding; and private firms contracted to perform work funded by this Act. SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF IN SPECTORS GENERAL. HR 1 PP

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1 2 3 4

Inspectors general shall retain independent authority to determine whether to conduct an audit or investigation of spending under this Act. If the Board requests that an

5 6

inspector general conduct or refrain from conducting an

7

audit or investigation and the inspector general rejects the

8

request in whole or in part, the inspector general shall,

9

within 30 days after receipt of the request, submit to the

10

Board, the agency head, and the congressional committees

11

of jurisdiction a report explaining why the inspector general 12 13 14

has rejected the request in whole or in part. SEC. 1228. COORDINATION WITH THE COMPTROLLER GEN ERAL AND STATE AUDITORS.

15

The Board shall coordinate its oversight activities with the Comptroller General of the United States and

State

auditor generals. SEC. 1229. INDEPENDENT ADVISORY PANEL.

(a) E STABLISHMENT.—There is established a panel to be known as the ‘‘Independent Advisory Panel’’ to advise the Board. (b) M EMBERSHIP.—The Panel shall be composed of five members appointed by the President from among individuals with expertise in economics, public finance, contracting, accounting, or other relevant fields. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(c)

2 3 4

FUNCTIONS.—The Panel shall make rec-

ommendations to the Board on actions the Board could take to prevent waste, fraud, and abuse in Federal spending

5 6

under this Act. (d) T RAVEL E XPENSES.—Each member of the Panel shall

7 8

receive travel expenses, including per diem in lieu

9

subsistence, in accordance with applicable provisions under

10

of

subchapter I of chapter 57 of title 5, United States Code.

11 SEC. 1230. FUNDING.

12

There is

13

hereby

appropriated

14

e

15

SEC. 1231. BOARD TERMINATION.

to

th

Board $14,000,000 to carry out this subtitle.

The Board shall terminate 12 months after 90 percent of the funds made available under this Act have been expended, as determined by the Director of the Office of Management and Budget. PART 3—ADDITIONAL ACCOUNTABILITY AND TRANSPARENCY PROVISIONS SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NON COMPETITIVE CONTRACTS.

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2

1 2

Act of 1949 (41 U.S.C. 253(c)(2)) that is for an amount

3

greater than the simplified acquisition threshold (as defined in

4

section 4(11) of the Office of Federal Procurement Policy Act

5 6

(41 U.S.C. (4)(11))— (1) may exceed the time necessary—

7

(A) to meet the unusual and compelling re-

8 9

quirements of the work to be performed under the

10

contract; and

11

(B) for the executive agency to enter into

12

another contract for the required goods or services

13 14

through the use of competitive procedures; and

15

(2) may exceed one year unless the head of the executive agency entering into such contract determines that exceptional circumstances apply. SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OF FICE AND OFFICES OF INSPECTOR GENERAL TO CERTAIN EMPLOYEES.

(A) A CCESS.—Each contract awarded using funds made available in this Act shall provide that the Comptroller General and his representatives, and any representatives of an appropriate inspector general appointed under section 3 or 8G of the Inspector General Act of 1978 (5 U.S.C. App.), are authorized— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

(1) to examine any records of the contractor or

3

any of its subcontractors, or any State or local agen

4

cy administering such contract, that directly pertain to,

5

and involve transactions relating to, the contract

6

or

subcontract; and

7

(2) to interview any current employee regarding

8 9

such transactions.

10

(b) R ELATIONSHIP TO E XISTING A UTHORITY .— Nothing

11

in this section shall be interpreted to limit or restrict in any 12 13 14 15

way any existing authority of the Comptroller General or an Inspector General. SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR WHISTLEBLOWERS.

(a) P ROHIBITION

OF

R EPRISALS.—An employee of any

non-Federal employer receiving funds made available in this Act may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to the Board, an inspector general, the Comptroller General, a member of Congress, or a Federal agency head, or their representatives, information that the employee reasonably believes is evidence of— (1) gross mismanagement of an executive agency contract or grant; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(2) a gross waste of executive agency funds;

2 3 4

(3) a substantial and specific danger to public health or safety; or

5

(4) a violation of law related to an executive

6 7 8

agency contract (including the competition for or negotiation of a contract) or grant awarded or issued to

9 10 11

carry out this Act. (b) INVESTIGATION OF C OMPLAINTS.— (1) A person who believes that the person has

12 13

been subjected to a reprisal prohibited by subsection

14

(a) may submit a complaint to the inspector general of

15

the executive agency that awarded the contract or issued the grant. Unless the inspector general determines that the complaint is frivolous, the inspector general shall investigate the complaint and, upon completion of such investigation, submit a report of the findings of the investigation to the person, the person’s employer, the head of the Federal agency that awarded the contract or issued the grant, and the Board. (2)(A) Except as provided under subparagraph (B), the inspector general shall make a determination

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1 2

that a complaint is frivolous or submit a report under

3

paragraph (1) within 180 days after receiving the

4

complaint.

5

(B) If the inspector general is unable to complete

6 7

an investigation in time to submit a report within the

8

180-day period specified in subparagraph

9

(A) and the person submitting the complaint agrees to

10

an extension of time, the inspector general shall submit

11

a report under paragraph (1) within such additional 12 13

period of time as shall be agreed upon between the

14

inspector general and the person submitting the

15

complaint. (c) R EMEDY AND E NFORCEMENT A UTHORITY .— (1) Not later than 30 days after receiving an inspector general report pursuant to subsection (b), the head of the agency concerned shall determine whether there is sufficient basis to conclude that the non-Federal employer has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take one or more of the following actions: (A) Order the employer to take affirmative action to abate the reprisal. HR 1 PP

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1 2

(B) Order the employer to reinstate the

3

person to the position that the person held before

4

the reprisal, together with the compensation

5

(including back pay), employment benefits, and

6 7

other terms and conditions of employment that

8

would apply to the person in that position if the

9

reprisal had not been taken.

10

(C) Order the employer to pay the com-

11

plainant an amount equal to the aggregate amount 12

of all costs and expenses (including attorneys’

13 14

fees and expert witnesses’ fees) that were

15

reasonably incurred by the complainant for, or in connection with, bringing the complaint regarding the reprisal, as determined by the head of the agency. (2) If the head of an executive agency issues an order denying relief under paragraph (1) or has not issued an order within 210 days after the submission of a complaint under subsection (b), or in the case of an extension of time under paragraph (b)(2)(B), not later than 30 days after the expiration of the extension of time, and there is no showing that such delay is due

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1 2

to the bad faith of the complainant, the complainant

3

shall be deemed to have exhausted all administrative

4

remedies with respect to the complaint, and the

5 6

complainant may bring a de novo action at law or

7

equity against the employer to seek compensatory

8

damages and other relief available under this section in

9

the appropriate district court of the United States,

10

which shall have jurisdiction over such an action

11

without regard to the amount in controversy. Such an 12 13 14

action shall, at the request of either party to the action, be tried by the court with a jury.

15

(3) An inspector general determination and an agency head order denying relief under paragraph (2) shall be admissible in evidence in any de novo action at law or equity brought pursuant to this subsection. (4) Whenever a person fails to comply with an order issued under paragraph (1), the head of the agency shall file an action for enforcement of such order in the United States district court for a district in which the reprisal was found to have occurred. In any action brought under this paragraph, the court may

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1 2

grant appropriate relief, including injunctive relief and

3

compensatory and exemplary damages.

4

(5) Any person adversely affected or aggrieved

5 6

by an order issued under paragraph (1) may obtain

7

review of the order’s conformance with this subsection,

8

and any regulations issued to carry out this section, in

9

the United States court of appeals for a circuit in

10

which the reprisal is alleged in the order to have

11

occurred. No petition seeking such review may be 12 13

filed more than 60 days after issuance of the order by

14

the head of the agency. Review shall conform to

15

chapter 7 of title 5. (d) C ONSTRUCTION .—Nothing in this section may be construed to authorize the discharge of, demotion of, or discrimination against an employee for a disclosure other than a disclosure protected by subsection (a) or to modify or derogate from a right or remedy otherwise available to the employee. (e) D EFINITIONS.— (1)

N ON -FEDERAL

EMPLOYER

RECEIVING FUNDS UNDER THIS ACT.—The

term

‘‘non-Federal employer receiving funds made available in this Act’’ means— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(A) with respect to a Federal contract

2 3

awarded or Federal grant issued to carry out this

4

Act, the contractor or grantee, as the case may be,

5

if the contractor or grantee is an employer; or

6 7

(B) a State or local government, if the State or

8

local government has received funds made available

9

in this Act.

10

(2) E XECUTIVE

AGENCY .—The

term ‘‘executive

11

agency’’ has the meaning given that term in section 4 of 12 13 14

the Office of Federal Procurement Policy Act (41 U.S.C. 403).

15

(3) S TATE OR LOCAL GOVERNMENT.—The term ‘‘State or local government’’ means— (A) the government of each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or any other territory or possession of the United States; or (B) the government of any political subdivision of a government listed in subparagraph (A).

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1

PART 4—FURTHER ACCOUNTABILITY AND

2 3

TRANSPARENCY PROVISIONS

4

SEC. 1261. SHORT TITLE; TABLE OF CONTENTS.

5

(a) S HORT T ITLE.—This part may be cited as the

6

‘‘Whistleblower Protection Enhancement Act of 2009’’. 7 8 9

(b) T ABLE OF C ONTENTS.—The table of contents for this part is as follows:

10

PART 4—FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

11

Sec. 1261. Short title; table of contents. Sec. 1262. Clarification of disclosures covered. Sec. 1263. Definitional amendments. Sec. 1264. Rebuttable presumption. Sec. 1265. Nondisclosure policies, forms, and agreements. Sec. 1266. Exclusion of agencies by the President. Sec. 1267. Disciplinary action. Sec. 1268. Government Accountability Office study on revocation of security clearances. Sec. 1269. Alternative recourse. Sec. 1270. National security whistleblower rights. Sec. 1271. Enhancement of contractor employee whistleblower protections. Sec. 1272. Prohibited personnel practices affecting the Transportation Security Administration. Sec. 1273. Clarification of whistleblower rights relating to scientific and other research. Sec. 1274. Effective date.

12 13 14 15

SEC. 1262. CLARIFICATION OF DISCLOSURES COVERED.

(a) IN G ENERAL.—Section 2302(b)(8) of title 5, United States Code, is amended— (1) in subparagraph (A)— (A) by striking ‘‘which the employee or applicant reasonably believes evidences’’ and inserting ‘‘, without restriction as to time, place, form, motive, context, forum, or prior disclosure HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

made to any person by an employee or applicant,

3

including a disclosure made in the ordinary course

4

of an employee’s duties, that the employee or

5

applicant reasonably believes is evidence of’’; and

6 7

(B) in clause (i), by striking ‘‘a violation’’

8 9

and inserting ‘‘any violation’’; and

10

(2) in subparagraph (B)—

11

(A) by striking ‘‘which the employee or ap-

12

plicant reasonably believes evidences’’ and in-

13 14

serting ‘‘, without restriction as to time, place,

15

form, motive, context, forum, or prior disclosure made to any person by an employee or applicant, including a disclosure made in the ordinary course of an employee’s duties, of informa tion that the employee or applicant reasonably believes is evidence of’’; and (B) in clause (i), by striking ‘‘a violation’’ and inserting ‘‘any violation (other than a violation of this section)’’. (b) P ROHIBITED P ERSONNEL P RACTICES U NDER S ECTION 2302(b)(9).—Title 5, United States Code, is amended in subsections (a)(3), (b)(4)(A), and (b)(4)(B)(i) of section HR 1 PP

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1

2

2

1214 and in subsections (a) and (e)(1) of section 1221 by

3

inserting ‘‘or 2302(b)(9)(B)–(D)’’ after ‘‘section

4

2302(b)(8)’’ each place it appears.

5 SEC. 1263. DEFINITIONAL AMENDMENTS.

6 7 8

(a) D ISCLOSURE.—Section 2302(a)(2) of title 5, United States Code, is amended— (1) in subparagraph (B)(ii), by striking ‘‘and’’ at

9 10

the end;

11

(2) in subparagraph (C)(iii), by striking the period

12 13

at the end and inserting ‘‘; and’’; and (3) by adding at the end the following:

14

‘‘(D) ‘disclosure’ means a formal or informal

15

communication, but does not include a communication concerning policy decisions that lawfully exercise discretionary authority unless the employee or applicant providing the disclosure reasonably believes that the disclosure evidences— ‘‘(i) any violation of any law, rule, or regulation; or ‘‘(ii) gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.’’.

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1 2 3 4

(b) C LEAR AND C ONVINCING E VIDENCE.—Sections 1214(b)(4)(B)(ii) and 1221(e)(2) of title 5, United States Code, are amended by adding at the end the following:

5 6

‘‘For purposes of the preceding sentence, ‘clear and con-

7

vincing evidence’ means evidence indicating that the matter

8

to be proved is highly probable or reasonably certain.’’.

9 10 11

SEC. 1264. REBUTTABLE PRESUMPTION.

Section 2302(b) of title 5, United States Code, is amended by adding at the end the following: ‘‘For purposes

12 13

of paragraph (8), any presumption relating to the

14

performance of a duty by an employee who has authority to

15

take, direct others to take, recommend, or approve any personnel action may be rebutted by substantial evidence. For purposes of paragraph (8), a determination as to whether an employee or applicant reasonably believes that such employee or applicant has disclosed information that evidences any violation of law, rule, regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety shall be made by determining whether a disin terested observer with knowledge of the essential facts known to or readily ascertainable by the employee or applicant could reasonably conclude that the actions of the Government HR 1 PP

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1 2

evidence such violations, mismanagement, waste, abuse, or

3

danger.’’.

4

SEC. 1265. NONDISCLOSURE POLICIES, FORMS, AND AGREE

5

MENTS.

6 7 8

(a) P ERSONNEL A CTION .—Section 2302(a)(2)(A) of title 5, United States Code, is amended— (1) in clause (x), by striking ‘‘and’’ at the end;

9 10 11

(2) by redesignating clause (xi) as clause (xii); and

12

(3) by inserting after clause (x) the following:

13

‘‘(xi) the implementation or enforcement of

14

any nondisclosure policy, form, or agreement;

15

and’’. (b) P ROHIBITED P ERSONNEL P RACTICE.—Section 2302(b) of title 5, United States Code, is amended— (1) in paragraph (11), by striking ‘‘or’’ at the end; (2) by redesignating paragraph (12) as paragraph (14); and (3) by inserting after paragraph (11) the following:

‘‘(12) implement or enforce any nondisclosure policy, form, or agreement, if such policy, form, or HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

agreement does not contain the following statement:

3

‘These provisions are consistent with and do not su-

4

persede, conflict with, or otherwise alter the employee

5 6

obligations, rights, or liabilities created by Executive

7

Order No. 12958; section 7211 of title 5, United

8

States Code (governing disclosures to Congress);

9

section 1034 of title 10, United States Code

10

(governing disclosures to Congress by members of the

11

military); section 2302(b)(8) of title 5, United States 12 13

Code (governing disclosures of illegality, waste, fraud,

14

abuse, or public health or safety threats); the

15

Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 and following) (governing disclosures that could expose confidential Government agents); and the statutes which protect against disclosures that could compromise national security, including sections 641, 793, 794, 798, and 952 of title 18, United States Code, and section 4(b) of the Subversive Activities Control Act of 1950 (50 U.S.C. 783(b)). The definitions, requirements, obligations, rights, sanctions, and liabilities created by such Executive order and such statutory provisions are incorporated into this

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1 2

agreement and are controlling.’;

3 4

‘‘(13) conduct, or cause to be conducted, an investigation, other than any ministerial or nondis-

5 6

cretionary factfinding activities necessary for the

7

agency to perform its mission, of an employee or ap-

8

plicant for employment because of any activity pro-

9

tected under this section; or’’.

10 11

SEC. 1266. EXCLUSION OF AGENCIES BY THE PRESIDENT.

Section 2302(a)(2)(C) of title 5, United States Code,

12 13 14

is amended by striking clause (ii) and inserting the following: ‘‘(ii)(I) the Federal Bureau of Investigation,

15

the Central Intelligence Agency, the Defense Intelligence Agency,

the

National

Geospatial-Intelligence Agency, or the National Security Agency; or ‘‘(II) as determined by the President, any Executive agency or unit thereof the principal function of which is the conduct of foreign intelligence or counterintelligence activities, if the determination (as that determination relates to a personnel action) is made before that personnel action; or’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2 3 4

SEC. 1267. DISCIPLINARY ACTION.

Section 1215(a)(3) of title 5, United States Code, is amended to read as follows:

5 6

‘‘(3)(A) A final order of the Board may impose—

7

‘‘(i) disciplinary action consisting of removal,

8 9

reduction in grade, debarment from Federal employment for a period not to exceed 5 years, suspension, or

10 11

reprimand; ‘‘(ii) an assessment of a civil penalty not to ex-

12 13

ceed $1,000; or

14 15

‘‘(iii) any combination of disciplinary actions described under clause (i) and an assessment described under clause (ii). ‘‘(B) In any case in which the Board finds that an employee has committed a prohibited personnel practice under paragraph (8) or (9) of section 2302(b), the Board shall impose disciplinary action if the Board finds that the activity protected under such paragraph (8) or (9) (as the case may be) was the primary motivating factor, unless that employee demonstrates, by a preponderance of the evidence, that the employee would have taken, failed to take, or threatened to take or fail to take the same personnel

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2

1 2

action, in the absence of such protected activity.’’.

3

SEC. 1268. GOVERNMENT ACCOUNTABILITY OFFICE STUDY

4

ON REVOCATION OF SECURITY CLEARANCES.

5

(a) R EQUIREMENT.—The Comptroller General shall

6 7 8

conduct a study of security clearance revocations, taking effect after 1996, with respect to personnel that filed claims

9

under chapter 12 of title 5, United States Code, in connection

10

therewith. The study shall consist of an examination of the

11

number of such clearances revoked, the number restored, and

12

the relationship, if any, between the resolution of claims filed 13 14 15

under such chapter and the restoration of such clearances. (b) R EPORT.—Not later than 270 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the results of the study required by subsection (a). SEC. 1269. ALTERNATIVE RECOURSE.

(a) IN G ENERAL.—Section 1221 of title 5, United States Code, is amended by adding at the end the following:

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1

2

2

ployee, or applicant for employment who seeks corrective

3

action (or on behalf of whom corrective action is sought)

4

from the Merit Systems Protection Board based on an al-

5 6

leged prohibited personnel practice described in section

7

2302(b)(8) or 2302(b)(9)(B)–(D), no final order or decision

8

is issued by the Board within 180 days after the date on

9

which a request for such corrective action has been duly

10

submitted (or, in the event that a final order or decision is

11

issued by the Board, whether within that 180-day period or 12 13

thereafter, then, within 90 days after such final order or

14

decision is issued, and so long as such employee, former

15

employee, or applicant has not filed a petition for judicial review of such order or decision under subsection (h))— ‘‘(A) such employee, former employee, or applicant may, after providing written notice to the Board, bring an action at law or equity for de novo review in the appropriate United States district court, which shall have jurisdiction over such action without regard to the amount in controversy, and which action shall, at the request of either party to such action, be tried by the court with a jury; and ‘‘(B) in any such action, the court— ‘‘(i) shall apply the standards set forth in

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1

2

2

subsection (e); and

3

‘‘(ii) may award any relief which the court

4

considers appropriate, including any relief de-

5

scribed in subsection (g).

6 7

An appeal from a final decision of a district court in an action

8

under this paragraph may, at the election of the appellant, be

9

taken to the Court of Appeals for the Federal Circuit (which

10

shall have jurisdiction of such appeal), in lieu of the United

11

States court of appeals for the circuit embracing the district in 12 13

which the action was brought.

14

‘‘(2) For purposes of this subsection, the term ‘appro-

15

priate United States district court’, as used with respect to an alleged prohibited personnel practice, means the United States district court for the district in which the prohibited personnel practice is alleged to have been committed, the judicial district in which the employment records relevant to such practice are maintained and administered, or the judicial district in which resides the employee, former employee, or applicant for employment allegedly affected by such practice. ‘‘(3) This subsection applies with respect to any appeal, petition, or other request for corrective action duly

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2

1 2

submitted to the Board, whether pursuant to section

3

1214(b)(2), the preceding provisions of this section, section

4

7513(d), or any otherwise applicable provisions of law,

5 6 7 8

rule, or regulation.’’. (b) R EVIEW OF MSPB D ECISIONS.—Section 7703(b) of such title 5 is amended—

9 10

(1) in the first sentence of paragraph (1), by striking ‘‘the United States Court of Appeals for the Federal

11

Circuit’’ and inserting ‘‘the appropriate United States 12 13 14 15

court of appeals’’; and (2) by adding at the end the following: ‘‘(3) For purposes of the first sentence of paragraph (1), the term ‘appropriate United States court of appeals’ means the United States Court of Appeals for the Federal Circuit, except that in the case of a prohibited personnel practice described

in

section

2302(b)(8) o

r

2302(b)(9)(B)–(D) (other than a case that, disregarding this paragraph, would otherwise be subject to paragraph (2)), such term means the United States Court of Appeals

for the

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2

1 2 3 4

personnel practice.’’. (c)

C OMPENSATORY

D AMAGES.—Section

1221(g)(1)(A)(ii) of such title 5 is amended by striking all

5 6

after ‘‘travel expenses,’’ and inserting ‘‘any other rea-

7

sonable and foreseeable consequential damages, and com-

8

pensatory damages (including attorney’s fees, interest,

9

reasonable expert witness fees, and costs).’’.

10

(d) C ONFORMING A MENDMENTS.—

11

(1) Section 1221(h) of such title 5 is amended by

12 13 14 15

adding at the end the following: ‘‘(3) Judicial review under this subsection shall not be available with respect to any decision or order as to which the employee, former employee, or applicant has filed a petition for judicial review under subsection (k).’’. (2) Section 7703(c) of such title 5 is amended by striking ‘‘court.’’ and inserting ‘‘court, and in the case of a prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(B)–(D) brought under any provision of law, rule, or regulation described in section 1221(k)(3), the employee or applicant shall have the right to de novo review in accordance with section 1221(k).’’.

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1 2 3 4 5

SEC. 1270. NATIONAL SECURITY WHISTLEBLOWER RIGHTS.

(a) IN G ENERAL.—Chapter 23 of title 5, United States Code, is amended by inserting after section 2303

the

following:

6 ‘‘§ 2303a. National security whistleblower rights 7

‘‘(a) P ROHIBITION OF R EPRISALS.—

8

‘‘(1) IN GENERAL.—In addition to any rights

9 10

provided in section 2303 of this title, title VII of Public

11

Law 105–272, or any other provision of law, an

12

employee or former employee in a covered agency

13 14 15

may not be discharged, demoted, or otherwise discriminated against (including by denying, suspending, or revoking a security clearance, or by otherwise restricting access to classified or sensitive in formation) as a reprisal for making a disclosure described in paragraph (2). ‘‘(2) D ISCLOSURES DESCRIBED .—A disclosure described in this paragraph is any disclosure of covered information which is made— ‘‘(A) by an employee or former employee in a covered agency (without restriction as to time, place, form, motive, context, or prior disclosure made to any person by an employee or former HR 1 PP

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2

1 2

employee, including a disclosure made in the course

3

of an employee’s duties); and

4

‘‘(B) to an authorized Member of Congress,

5

an authorized official of an Executive agency, or

6 7

the Inspector General of the covered agency in

8

which such employee or former employee is or

9

was employed.

10

‘‘(b) INVESTIGATION OF C OMPLAINTS.—An employee

11

or former employee in a covered agency who believes that 12 13

such employee or former employee has been subjected to a

14

reprisal prohibited by subsection (a) may submit a complaint

15

to the Inspector General and the head of the covered agency. The Inspector General shall investigate the complaint and, unless the Inspector General determines that the complaint is frivolous, submit a report of the findings of the investigation within 120 days to the employee or former employee (as the case may be) and to the head of the covered agency. ‘‘(c) R EMEDY .— ‘‘(1) Within 180 days of the filing of the complaint, the head of the covered agency shall, taking into consideration the report of the Inspector General under subsection (b) (if any), determine whether the HR 1 PP

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2

1 2

employee or former employee has been subjected to a

3

reprisal prohibited by subsection (a), and shall either

4

issue an order denying relief or shall implement

5 6

corrective action to return the employee or former

7

employee, as nearly as possible, to the position he

8

would have held had the reprisal not occurred,

9

including voiding any directive or order denying,

10

suspending, or revoking a security clearance or

11

otherwise restricting access to classified or sensitive 12 13

information that constituted a reprisal, as well as

14

providing back pay and related benefits, medical costs

15

incurred, travel expenses, any other reasonable and foreseeable consequential damages, and compensatory damages (including attorney’s fees, interest, reasonable expert witness fees, and costs). If the head of the covered agency issues an order denying relief, he shall issue a report to the employee or former employee detailing the reasons for the denial. ‘‘(2)(A) If the head of the covered agency, in the process of implementing corrective action under paragraph (1), voids a directive or order denying, suspending, or revoking a security clearance or othHR 1 PP

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1 2

erwise restricting access to classified or sensitive in-

3

formation that constituted a reprisal, the head of the

4

covered agency may re-initiate procedures to issue a

5 6

directive or order denying, suspending, or revoking a

7

security clearance or otherwise restricting access to

8

classified or sensitive information only if those re-

9

initiated procedures are based exclusively on national

10

security concerns and are unrelated to the actions

11

constituting the original reprisal. 12

‘‘(B) In any case in which the head of a covered

13 14

agency re-initiates procedures under subparagraph (A),

15

the head of the covered agency shall issue an unclassified report to its Inspector General and to authorized Members of Congress (with a classified annex, if necessary), detailing the circumstances of the agency’s re-initiated procedures and describing the manner in which those procedures are based exclusively on national security concerns and are unrelated to the actions constituting the original reprisal. The head of the covered agency shall also provide periodic updates to the Inspector General and au thorized Members of Congress detailing any significant

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1 2

actions taken as a result of those procedures, and shall

3

respond promptly to inquiries from authorized

4

Members of Congress regarding the status of those

5 6

procedures. ‘‘(3) If the head of the covered agency has not

7 8

made a determination under paragraph (1) within 180

9

days of the filing of the complaint (or he has issued an

10

order denying relief, in whole or in part, whether

11

within that 180-day period or thereafter, then, within 12 13

90 days after such order is issued), the employee or

14

former employee may bring an action at law or equity

15

for de novo review to seek any corrective action described in paragraph (1) in the appropriate United States district court (as defined by section 1221(k)(2)), which shall have jurisdiction over such action without regard to the amount in controversy. An appeal from a final decision of a district court in an action under this paragraph may, at the election of the appellant, be taken to the Court of Appeals for the Federal Circuit (which shall have jurisdiction of such appeal), in lieu of the United States court of appeals for the circuit embracing the district in which the action was brought.

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1

‘‘(4) An employee or former employee adversely

2 3 4

affected or aggrieved by an order issued under paragraph (1), or who seeks review of any corrective action

5 6

determined under paragraph (1), may obtain judicial

7

review of such order or determination in the United

8

States Court of Appeals for the Federal Circuit or any

9

United States court of appeals having jurisdiction over

10

appeals from any United States district court which,

11

under section 1221(k)(2), would be an appropriate 12 13

United States district court. No petition seeking such

14

review may be filed more than 60 days after issuance

15

of the order or the determination to implement corrective action by the head of the agency. Review shall conform to chapter 7. ‘‘(5)(A) If, in any action for damages or relief under paragraph (3) or (4), an Executive agency moves to withhold information from discovery based on a claim that disclosure would be inimical to national security by asserting the privilege commonly referred to as the ‘state secrets privilege’, and if the assertion of such privilege prevents the employee or former employee from establishing an element in support of

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1 2

the employee’s or former employee’s claim, the court

3

shall resolve the disputed issue of fact or law in favor

4

of the employee or former em ployee, provided that an

5 6

Inspector General investigation under subsection (b)

7

has resulted in substantial confirmation of that

8

element, or those elements, of the employee’s or

9

former employee’s claim.

10

‘‘(B) In any case in which an Executive agency

11

asserts the privilege commonly referred to as the ‘state 12 13

secrets privilege’, whether or not an Inspector General

14

has conducted an investigation under subsection (b),

15

the head of that agency shall, at the same time it asserts the privilege, issue a report to authorized Members of Congress, accompanied by a classified annex if necessary, describing the reasons for the assertion, explaining why the court hearing the matter does not have the ability to maintain the protection of classified information related to the assertion, detailing the steps the agency has taken to arrive at a mutually agreeable settlement with the employee or former employee, setting forth the date on which the classified information at issue will be declassified, and providing

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1 2

all relevant information about the underlying

3

substantive matter.

4

‘‘(d) A PPLICABILITY TO N ON -C OVERED A GENCIES.— An

5 6

employee or former employee in an Executive agency (or

7

element or unit thereof) that is not a covered agency shall, for

8

purposes of any disclosure of covered information

9

described in subsection (a)(2)) which consists in whole or in

10

(as

part of classified or sensitive information, be entitled to the

11

same protections, rights, and remedies under this section as 12 13 14 15

if that Executive agency (or element or unit thereof) were a covered agency. ‘‘(e) C ONSTRUCTION .—Nothing in this section may be construed— ‘‘(1) to authorize the discharge of, demotion of, or discrimination against an employee or former employee for a disclosure other than a disclosure protected by subsection (a) or (d) of this section or to modify or derogate from a right or remedy otherwise available to an employee or former employee; or ‘‘(2) to preempt, modify, limit, or derogate any rights or remedies available to an employee or former employee under any other provision of law, rule, or

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1 2

regulation (including the Lloyd-La Follette Act).

3

No court or administrative agency may require the ex-

4

haustion of any right or remedy under this section as a

5 6

condition for pursuing any other right or remedy otherwise

7

available to an employee or former employee under any

8

other provision of law, rule, or regulation (as referred to in

9

paragraph (2)).

10

‘‘(f) D EFINITIONS.—For purposes of this section— ‘‘(1) the term ‘covered information’, as used with

11 12 13

respect to an employee or former employee, means any information (including classified or sensitive

14 15

information) which the employee or former employee reasonably believes evidences— ‘‘(A) any violation of any law, rule, or regulation; or ‘‘(B) gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety; ‘‘(2) the term ‘covered agency’ means— ‘‘(A) the Federal Bureau of Investigation, the Office of the Director of National Intelligence, the Central Intelligence Agency, the Defense Intelligence Agency, the National HR 1 PP

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2

1 2

Geospatial-Intelligence Agency, the National Se-

3

curity Agency, and the National Reconnaissance

4

Office; and

5

‘‘(B) any other Executive agency, or element

6 7

or unit thereof, determined by the President under

8

section 2302(a)(2)(C)(ii)(II) to have as its

9

principal function the conduct of foreign

10

intelligence or counterintelligence activities;

11

‘‘(3) the term ‘authorized Member of Congress’ 12 13

means— ‘‘(A) with respect to covered information

14 15

about sources and methods of the Central Intelligence Agency, the Director of National Intelligence, and the National Intelligence Program (as defined in section 3(6) of the National Security Act of 1947), a member of the House Permanent Select Committee on Intelligence, the Senate Select Committee on Intelligence, or any other committees of the House of Representatives or Senate to which this type of information is customarily provided; ‘‘(B) with respect to special access programs

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2 specified in section 119 of title 10, an appropriate member of the Congressional defense committees (as defined in such section); and ‘‘(C) with respect to other covered information, a member of the House Permanent Select Committee on Intelligence, the Senate Select Committee on Intelligence, the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, or any other committees of the House of Representatives or the

1Senate that have oversight over the program 2which the covered information concerns; and 3‘‘(4) the term ‘authorized official of an Execu 4tive agency’ shall have such meaning as the Office 5of Personnel Management shall by regulation pre 6scribe, except that such term shall, with respect to 7any employee or former employee in an agency, in 8clude the head, the general counsel, and the ombuds 9

man of such agency.’’. 10(b) C LERICAL A MENDMENT.—The table of sections 11 for chapter 23 of title 5, United States Code, is amended

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2

1 2 3 4 5

12 by inserting after the item relating to section 2303 the 13 following: ‘‘2303a. National security whistleblower rights.’’.

14

SEC. 1271. ENHANCEMENT OF CONTRACTOR EMPLOYEE

6 7 8 9

15 WHISTLEBLOWER PROTECTIONS. 16(a) C IVILIAN A GENCY C ONTRACTS.—Section 315(c) 17 of the Federal Property and Administrative Services Act 18 of 1949 (41 U.S.C. 265(c)) is amended—

10

19(1) in paragraph (1), by striking ‘‘If the head’’

11 12

20and all that follows through ‘‘actions:’’ and inserting

13

21the following: ‘‘Not later than 180 days after sub

14

22mission of a complaint under subsection (b), the

15

23head of the executive agency concerned shall deter 24mine whether the contractor concerned has subjected 25the complainant to a reprisal prohibited by sub section (a) and shall either issue an order denying relief or shall take one or more of the following actions:’’; and (2) by redesignating paragraph (3) as paragraph (4) and adding after paragraph (2) the following new paragraph (3): ‘‘(3) If the head of an executive agency has not issued an order within 180 days after the submission of a complaint under subsection (b) and there is no showing that such HR 1 PP

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2

1 2

delay is due to the bad faith of the complainant, the

3

complainant shall be deemed to have exhausted his admin-

4

istrative remedies with respect to the complaint, and the

5 6

complainant may bring an action at law or equity for de

7

novo review to seek compensatory damages and other relief

8

available under this section in the appropriate district court

9

of the United States, which shall have jurisdiction over

10

such an action without regard to the amount in controversy,

11

and which action shall, at the request of either party to such 12 13 14 15

action, be tried by the court with a jury.’’. (b) A RMED S ERVICES C ONTRACTS.—Section 2409(c) of title 10, United States Code, is amended— (1) in paragraph (1), by striking ‘‘If the head’’ and all that follows through ‘‘actions:’’ and inserting the following: ‘‘Not later than 180 days after submission of a complaint under subsection (b), the head of the agency concerned shall determine whether the contractor concerned has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take one or more of the following actions:’’; and (2) by redesignating paragraph (3) as paragraph (4)

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2

1 2

and adding after paragraph (2) the following new

3

paragraph (3):

4

‘‘(3) If the head of an agency has not issued an order

5 6

within 180 days after the submission of a complaint under

7

subsection (b) and there is no showing that such delay is

8

due to the bad faith of the complainant, the complainant

9

shall be deemed to have exhausted his administrative rem-

10

edies with respect to the complaint, and the complainant

11

may bring an action at law or equity for de novo review to 12 13

seek compensatory damages and other relief available

14

under this section in the appropriate district court of the

15

United States, which shall have jurisdiction over such an action without regard to the amount in controversy, and which action shall, at the request of either party to such action, be tried by the court with a jury.’’.

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SEC. 1272. PROHIBITED PERSONNEL PRACTICES AFFECT

3

ING THE TRANSPORTATION SECURITY AD

4

MINISTRATION.

5 6

(a) IN G ENERAL.—Chapter 23 of title 5, United States Code, is amended—

7

(1) by redesignating sections 2304 and 2305 as

8

sections 2305 and 2306, respectively; and

9

(2) by inserting after section 2303a (as inserted

10 11 12 13

by section 1270) the following: ‘‘§ 2304. Prohibited personnel practices affecting the Transportation Security Administration ‘‘(a) IN

14 15

G ENERAL.—Notwithstanding any other provision of law, any individual holding or applying for a position within the Transportation Security Administration shall be covered by— ‘‘(1) the provisions of section 2302(b)(1), (8), and (9); ‘‘(2) any provision of law implementing section 2302(b)(1), (8), or (9) by providing any right or remedy available to an employee or applicant for employment in the civil service; and ‘‘(3) any rule or regulation prescribed under any provision of law referred to in paragraph (1) or (2). HR 1 PP

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2 ‘‘(b) R ULE OF C ONSTRUCTION .—Nothing in this section shall be construed to affect any rights, apart from

1 those described in subsection (a), to which an individual 2 described in subsection (a) might otherwise be entitled 3 under law. 4‘‘(c) E FFECTIVE D ATE .—This section shall take ef 5 fect as of the date of the enactment of this section.’’. 6(b) C LERICAL A MENDMENT.—The table of sections 7 for chapter 23 of title 5, United States Code, is amended 8 by striking the items relating to sections 2304 and 2305, 9 respectively, and by inserting the following: ‘‘2304. Prohibited personnel practices affecting the Transportation Security Administration. ‘‘2305. Responsibility of the Government Accountability Office. ‘‘2306. Coordination with certain other provisions of law.’’.

10

SEC. 1273. CLARIFICATION OF WHISTLEBLOWER RIGHTS

11 RELATING TO SCIENTIFIC AND OTHER RE 12

SEARCH.

13(a) IN G ENERAL.—Section 2302 of title 5, United 14 States Code, is amended by adding at the end the fol 15 lowing: 16‘‘(f) As used in section 2302(b)(8), the term ‘abuse 17 of authority’ includes— 18‘‘(1) any action that compromises the validity 19or accuracy of federally funded research or analysis; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

20‘‘(2) the dissemination of false or misleading

2 3

21scientific, medical, or technical information;

4 5 6 7 8 9

22‘‘(3) any action that restricts or prevents an 23employee or any person performing federally funded research or analysis from publishing in peer-reviewed journals or other scientific publications or making oral presentations at professional society meetings or other meetings of their peers; and ‘‘(4) any action that discriminates for or against

10

any employee or applicant for employment on the

11

basis of religion, as defined by section 1273(b) of the

12

Whistleblower Protection Enhancement Act of 2009.’’.

13

(b) D EFINITION .—As used in section 2302(f)(3) of

14 15

title 5, United States Code (as amended by subsection (a)), the term ‘‘on the basis of religion’’ means— (1) prohibiting personal religious expression by Federal employees to the greatest extent possible, consistent with requirements of law and interests in workplace efficiency; (2) requiring religious participation or non-participation as a condition of employment, or permitting religious harassment; (3) failing to accommodate employees’ exercise of their religion; (4) failing to treat all employees with the same HR 1 PP

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1 2

respect and consideration, regardless of their religion (or

3

lack thereof);

4

(5) restricting personal religious expression by

5 6

employees in the Federal workplace except where the

7

employee’s interest in the expression is outweighed by

8

the government’s interest in the efficient provision of

9

public services or where the expression intrudes upon

10

the legitimate rights of other employees or creates the

11

appearance, to a reasonable observer, of an official 12 13

endorsement of religion; (6) regulating employees’ personal religious ex-

14 15

pression on the basis of its content or viewpoint, or suppressing employees’ private religious speech in the workplace while leaving unregulated other private employee speech that has a comparable effect on the efficiency of the workplace, including ideological speech on politics and other topics; (7) failing to exercise their authority in an evenhanded and restrained manner, and with regard for the fact that Americans are used to expressions

of

disagreement on controversial subjects, including religious ones;

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1 2

(8) failing to permit an employee to engage in

3

private religious expression in personal work areas not

4

regularly open to the public to the same extent that they

5 6

may engage in nonreligious private expres

7

sion, subject to reasonable content- and viewpoint-

8

neutral standards and restrictions;

9 10

(9) failing to permit an employee to engage in religious expression with fellow employees, to the same

11

extent that they may engage in comparable nonreligious 12 13 14

private

expression,

subject

to

reasonable

and

content-neutral standards and restrictions;

15

(10) failing to permit an employee to engage in religious expression directed at fellow employees, and may even attempt to persuade fellow employees of the correctness of their religious views, to the same extent as those employees may engage in comparable speech not involving religion; (11) inhibiting an employee from urging a colleague to participate or not to participate in religious activities to the same extent that, consistent with concerns of workplace efficiency, they may urge their colleagues to engage in or refrain from other personal

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2

1 2

endeavors, except that the employee must refrain from

3

such expression when a fellow employee asks that it

4

stop or otherwise demonstrates that it is unwelcome;

5

(12) failing to prohibit expression that is part of a

6 7

larger pattern of verbal attacks on fellow em ployees

8

(or a specific employee) not sharing the faith of the

9

speaker;

10

(13) preventing an employee from—

11

(A) wearing personal religious jewelry absent

12

special circumstances (such as safety concerns)

13 14

that might require a ban on all similar

15

nonreligious jewelry; or (B) displaying religious art and literature in their personal work areas to the same extent that they may display other art and literature, so long as the viewing public would reasonably understand the religious expression to be that of the employee acting in her personal capacity, and not that of the government itself; (14) prohibiting an employee from using their private time to discuss religion with willing coworkers in public spaces to the same extent as they may discuss other subjects, so long as the public would HR 1 PP

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2

1 2

reasonably understand the religious expression to be

3

that of the employees acting in their personal capac-

4

ities;

5

(15) discriminating against an employee on the

6 7

basis of their religion, religious beliefs, or views con-

8

cerning their religion by promoting, refusing to pro-

9

mote, hiring, refusing to hire, or otherwise favoring or

10

disfavoring, an employee or potential employee

11

because of his or her religion, religious beliefs, or 12 13

views concerning religion, or by explicitly or implicitly,

14

insisting that the employee participate in religious

15

activities as a condition of continued employment, promotion, salary increases, preferred job assignments, or any other incidents of employment or insisting that an employee refrain from participating in religious activities outside the workplace except pursuant to otherwise legal, neutral restrictions that apply to employees’ off-duty conduct and expression in general (such as restrictions on political activities prohibited by the Hatch Act); (16) prohibiting a supervisor’s religious expression where it is not coercive and is understood to be

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2

1 2

his or her personal view, in the same way and to the

3

same extent as other constitutionally valued speech;

4

(17) permitting a hostile environment, or religious

5 6

harassment, in the form of religiously discriminatory

7

intimidation, or pervasive or severe religious ridicule

8

or insult, whether by supervisors or fellow workers, as

9

determined by its frequency or repetitiveness, and

10

severity;

11

(18) failing to accommodate an employee’s exer12 13

cise of their religion unless such accommodation

14

would impose an undue hardship on the conduct of the

15

agency’s operations, based on real rather than speculative or

hypothetical cost

and

without

disfavoring other, nonreligious accommodations; and (19) in those cases where an agency’s work rule imposes a substantial burden on a particular employee’s exercise of religion, failing to grant the employee an exemption from that rule, absent a compelling interest in denying the exemption and where there is no less restrictive means of furthering that interest. (c) R ULE OF C ONSTRUCTION .—Nothing in this section

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2

1 2

shall be construed to create any new right, benefit, or trust

3

responsibility, substantive or procedural, enforceable at law

4

or equity by a party against the United States, its agencies,

5 6 7

its officers, or any person. SEC. 1274. EFFECTIVE DATE.

8

This part shall take effect 30 days after the date of the

9

enactment of this Act, except as provided in the amendment

10

made by section 1272(a)(2).

11 12 13 14 15

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1 2 3

TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT

4

DEPARTMENT OF AGRICULTURE

5 6 7

A GRICULTURE B UILDINGS AND FACILITIES AND R ENTAL P AYMENTS For an additional amount for ‘‘Agriculture

8

Buildings and Facilities and Rental Payments’’,

9

$44,000,000, for necessary construction, repair, and

10

improvement activities: Provided, That section 1106 of this

11

Act shall not apply to this appropriation. 12

A GRICULTURAL R ESEARCH S ERVICE

13

BUILDINGS AND FACILITIES

14 15

For an additional amount for ‘‘Buildings and Facilities’’, $209,000,000, for work on deferred maintenance at Agricultural Research Service facilities: Provided, That priority in the use of such funds shall be given to critical deferred maintenance, to projects that can be completed, and to activities that can commence promptly following enactment of this Act. FARM S ERVICE A GENCY SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses,’’ $245,000,000, for the purpose of maintaining and modernizing the information technology system: Pro vided, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

That section 1106 of this Act shall not apply to this

3

appropriation.

4

N ATURAL R ESOURCES C ONSERVATION S ERVICE

5 6

WATERSHED AND FLOOD PREVENTION OPERATIONS For

an

7

additional amount for ‘‘Watershed and Flood Prevention

8

Operations’’,

9

$175,000,000 is for necessary expenses to purchase and

10

$350,000,000,

of

which

restore floodplain easements as authorized by section 403

11 12

of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)

13

(except that no more than $50,000,000 of the amount pro-

14

vided for the purchase of floodplain easements may be ob-

15

ligated for projects in any one State): Provided, That section 1106 of this Act shall not apply to this appropriation: Provided further, That priority in the use of such funds shall be given to projects that can be fully funded and completed with the funds appropriated in this Act, and to activities that can commence promptly following enactment of this Act. WATERSHED REHABILITATION PROGRAM

For an additional amount for ‘‘Watershed Rehabilitation Program’’, $50,000,000, for necessary expenses to carry out rehabilitation of structural measures: Provided, That section 1106 of this Act shall not apply to this apHR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

propriation: Provided further, That priority in the use of

3

such funds shall be given to projects that can be fully

4

funded and completed with the funds appropriated in this

5 6 7

Act, and to activities that can commence promptly following enactment of this Act. R URAL D EVELOPMENT P ROGRAMS

8 9

RURAL COMMUNITY ADVANCEMENT PROGRAM

10 11

(INCLUDING TRANSFERS OF FUNDS)

For an additional amount for gross obligations for the

12

principal amount of direct and guaranteed loans as 13 14 15

authorized by sections 306 and 310B and described in sections 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the Consolidated Farm and Rural Development Act, to be available from the rural community advancement program, as

follows:

$5,838,000,000,

of

which

$1,102,000,000 is for rural community facilities direct loans, of which $2,000,000,000 is for business and industry guaranteed loans, and of which $2,736,000,000 is for rural water and waste disposal direct loans. For an additional amount for the cost of direct loans, loan guarantees, and grants, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: $1,800,000,000, of which HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

$63,000,000 is for rural community facilities direct loans,

3

of which $137,000,000 is for rural community facilities

4

grants authorized under section 306(a) of the Consolidated

5 6

Farm and Rural Development Act, of which $87,000,000 is

7

for business and industry guaranteed loans, of which

8

$13,000,000 is for rural business enterprise grants

9

authorized under section 310B of the Consolidated Farm

10

and Rural Development Act, of which $400,000,000 is for

11

rural water and waste disposal direct loans, and of which 12 13

$1,100,000,000 is for rural water and waste disposal grants

14

authorized under section 306(a): Provided, That the

15

amounts appropriated under this heading shall be transferred to, and merged with, the appropriation for ‘‘Rural Housing Service, Rural Community Facilities Program Account’’, the appropriation for ‘‘Rural Business-Cooperative Service, Rural Business Program Account’’, and the appropriation for ‘‘Rural Utilities Service, Rural Water and Waste Disposal Program Account’’: Provided further, That priority for awarding such funds shall be given to project applications that demonstrate that, if the application is approved, all project elements will be fully funded: Provided further, That priority for awarding such funds

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1

2

2

shall be given to project applications for activities that can

3

be completed if the requested funds are provided: Provided

4

further, That priority for awarding such funds shall be

5 6 7

given to activities that can commence promptly following enactment of this Act.

8

In addition to other available funds, the Secretary of

9

Agriculture may use not more than 3 percent of the funds

10

made available under this account for administrative costs

11

to carry out loans, loan guarantees, and grants funded under 12 13

this account, which shall be transferred and merged with

14

the appropriation for ‘‘Rural Development, Salaries and

15

Expenses’’ and shall remain available until September 30, 2012: Provided, That the authority provided in this paragraph shall apply to appropriations under this heading in lieu of the provisions of section 1106 of this Act. Funds appropriated by this Act to the Rural Community Advancement Program for rural community facilities, rural business, and rural water and waste disposal direct loans, loan guarantees and grants may be transferred among these programs: Provided, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any

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2

1 2

transfer.

3

R URAL H OUSING S ERVICE

4

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

5 (INCLUDING TRANSFERS OF FUNDS)

6 7 8 9 10 11

For an additional amount of gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the Housing Act of 1949, to be available from funds in the rural housing insurance fund, as follows: $22,129,000,000 for loans to section 502 bor-

12

rowers, of which $4,018,000,000 shall be for direct loans, 13 14 15

and of which $18,111,000,000 shall be for unsubsidized guaranteed loans. For an additional amount for the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: section 502 loans, $500,000,000, of which $270,000,000 shall be for direct loans, and of which $230,000,000 shall be for unsubsidized guaranteed loans. In addition to other available funds, the Secretary of Agriculture may use not more than 3 percent of the funds made available under this account for administrative costs to carry out loans and loan guarantees funded under this account, of which $1,750,000 will be committed to agency HR 1 PP

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2

1 2

projects associated with maintaining the compliance, safety,

3

and soundness of the portfolio of loans guaranteed through

4

the section 502 guaranteed loan program: Provided, These

5 6

funds shall be transferred and merged with the

7

appropriation for ‘‘Rural Development, Salaries and

8

Expenses’’: Provided further, That the authority provided

9

in this paragraph shall apply to appropriations under this

10

heading in lieu of the provisions of section 1106 of this Act.

11 12 13

Funds appropriated by this Act to the Rural Housing

14

Insurance Fund Program account for section 502 direct loans

15

and unsubsidized guaranteed loans may be trans ferred between these programs: Provided, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any transfer. R URAL U TILITIES S ERVICE DISTANCE LEARNING , TELEMEDICINE , AND BROADBAND PROGRAM (INCLUDING TRANSFERS OF FUNDS)

For an additional amount for the cost of broadband loans and loan guarantees, as authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

grants, $2,825,000,000: Provided, That the cost of direct

3

and guaranteed loans shall be as defined in section 502 of

4

the Congressional Budget Act of 1974: Provided further,

5 6

That, notwithstanding title VI of the Rural Electrification

7

Act of 1936, this amount is available for grants, loans and

8

loan guarantees for open access broadband infrastructure in

9

any area of the United States: Provided further, That at

10

least 75 percent of the area to be served by a project

11

receiving funds from such grants, loans or loan guarantees 12 13

shall be in a rural area without sufficient access to high

14

speed broadband service to facilitate rural economic

15

development, as determined by the Secretary of Agriculture: Provided further, That priority for awarding funds made available under this paragraph shall be given to projects that provide service to the most rural residents that do not have access to broadband service: Provided further, That priority shall be given for project applications from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 and for project applications that include such borrowers or former borrowers: Provided further, That notwithstanding section 1103 of this Act, 50 percent of the grants, loans, and loan guarantees made

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1 2

available under this heading shall be awarded not later than

3

September 30, 2009: Provided further, That priority for

4

awarding such funds shall be given to project applications

5 6

that demonstrate that, if the application is approved, all

7

project elements will be fully funded: Provided further,

8

That priority for awarding such funds shall be given to

9

project applications for activities that can be completed if

10

the requested funds are provided: Provided further, That

11

priority for awarding such funds shall be given to activities 12 13

that can commence promptly following enactment of this

14

Act: Provided further, That no area of a project funded

15

with amounts made available under this paragraph may receive funding to provide broadband service under the Broadband Deployment Grant Program: Provided further, That the Secretary shall submit a report on planned spending and actual obligations describing the use of these funds not later than 90 days after the date of enactment of this Act, and quarterly thereafter until all funds are obligated, to the Committees on Appropriations of the House of Representatives and the Senate. In addition to other available funds, the Secretary may use not more than 3 percent of the funds made available

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2

1 2

under this account for administrative costs to carry out

3

loans, loan guarantees, and grants funded under this

4

account, which shall be transferred and merged with the

5 6

appropriation for ‘‘Rural Development, Salaries and Ex-

7

penses’’ and shall remain available until September 30,

8

2012: Provided, That the authority provided in this para-

9

graph shall apply to appropriations under this heading in

10

lieu of the provisions of section 1106 of this Act.

11

FOOD AND N UTRITION S ERVICE 12 13

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN ,

14

INFANTS, AND CHILDREN (WIC) For

an additional amount for

15

the special supplemental nutrition program as authorized by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), $100,000,000, for the purposes specified in section 17(h)(10)(B)(ii) for the Secretary of Agriculture to provide assistance to State agencies to implement new management information systems or improve existing management information systems for the program. EMERGENCY FOOD ASSISTANCE PROGRAM

For an additional amount for the emergency food assistance program as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) and section

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1

2

2

204(a)(1) of the Emergency Food Assistance Act of 1983

3

(7 U.S.C. 7508(a)(1)), $150,000,000, of which

4

$100,000,000 is for the purchase of commodities and of

5 6 7

which $50,000,000 is for costs associated with the distribution of commodities. GENERAL PROVISIONS, THIS TITLE

8 9

SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER

10

THE SUPPLEMENTAL NUTRITION ASSIST

11

ANCE PROGRAM.

12

(a) M AXIMUM B ENEFIT INCREASE.—

13

(1) IN GENERAL.—Beginning the first month that

14 15

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) T ERMINATION .— (A) The authority provided by this subsection shall terminate after September 30, 2009. (B) Notwithstanding subparagraph (A), the

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2

1 2

Secretary of Agriculture may not reduce the value

3

of the maximum allotment below the level in effect

4

for fiscal year 2009 as a result of paragraph (1).

5 6 7

(b) R EQUIREMENTS FOR THE S ECRETARY .—In carrying out this section, the Secretary shall— (1) consider the benefit increases described in

8 9

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

10

(2) require a simple process for States to notify

11

households of the increase in benefits; 12

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

13 14

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

15

apply to any errors in the implementation of this section, without regard to the 120-day limit described in that section; and (4) have the authority to take such measures as necessary to ensure the efficient administration of the benefits provided in this section. (c) A DMINISTRATIVE E XPENSES.— (1) IN GENERAL.—For the costs of State administrative expenses associated with carrying out this section, the Secretary shall make available $150,000,000 in each of fiscal years 2009 and 2010, to remain available through September 30, 2012, of HR 1 PP

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1 2

which $4,500,000 is for necessary expenses of the

3

Food and Nutrition Service for management and

4

oversight of the program and for monitoring the in-

5 6 7

tegrity and evaluating the effects of the payments made under this section. (2) A VAILABILITY OF FUNDS.—Funds described in

8 9 10

paragraph (1) shall be made available as grants to State agencies based on each State’s share of

11

households that participate in the Supplemental Nu12 13

trition Assistance Program as reported to the De-

14

partment of Agriculture for the 12-month period

15

ending with June, 2008. (d) T REATMENT OF J OBLESS W ORKERS.—Beginning with the first month that begins not less than 25 days after the date of enactment of this Act, and for each subsequent month through September 30, 2010, jobless adults who comply with work registration and employment and training requirements under section 6, section 20, or section 26 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015, 2029, or 2035) shall not be disqualified from the Supplemental Nutrition Assistance Program because of the provisions of section 6(o)(2) of such Act (7 U.S.C. 2015(o)(2)).

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1

2

2

Beginning on October 1, 2010, for the purposes of section

3

6(o), a State agency shall disregard any period during

4

which an individual received Supplemental Nutrition

5 6

Assistance Program benefits prior to October 1, 2010.

7

(e) FUNDING .—There is appropriated to the Secretary

8

of Agriculture such sums as are necessary to carry out this

9

section, to remain available until expended. Section 1106 of

10

this Act shall not apply to this appropriation.

11 SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK

12 CHILDREN.

13 14 15

Section 17(r) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is amended by

striking

paragraph (5).

TITLE III—COMMERCE, JUSTICE, AND SCIENCE Subtitle A—Commerce DEPARTMENT OF COMMERCE E CONOMIC D EVELOPMENT A DMINISTRATION E CONOMIC D EVELOPMENT A SSISTANCE P ROGRAMS (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Economic

Development Assistance Programs’’, $250,000,000: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall not exceed 2 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

percent instead of the percentage specified in such section:

3

Provided further, That the amount set aside pursuant to the

4

previous proviso shall be transferred to and merged with

5 6

the appropriation for ‘‘Salaries and Expenses’’ for purposes

7

of program administration and oversight: Provided further,

8

That up to $50,000,000 may be transferred to federally

9

authorized regional economic development commissions.

10

B UREAU OF THE C ENSUS

11 PERIODIC CENSUSES AND PROGRAMS

12 13

For an additional amount for ‘‘Periodic Censuses and

14

Programs’’, $1,000,000,000: Provided, That section 1106 of

15

this Act shall not apply to funds provided under this heading. N ATIONAL T ELECOMMUNICATIONS AND INFORMATION A DMINISTRATION SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $350,000,000, to remain available until September 30, 2011: Provided, That funds shall be available to establish the State Broadband Data and Development Grant Program, as authorized by Public Law 110–385, for the development and implementation of statewide initiatives to identify and track the availability and adoption of broadband services within each State, and to develop and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

maintain a nationwide broadband inventory map, as

3

authorized by section 6001 of division B of this Act.

4

WIRELESS AND BROADBAND DEPLOYMENT GRANT

5 PROGRAMS

6 (INCLUDING TRANSFER OF FUNDS)

7 8 9 10 11

For necessary expenses related to the Wireless and Broadband Deployment Grant Programs established by section 6002 of division B of this Act, $2,825,000,000, of which $1,000,000,000 shall be for Wireless Deployment

12

Grants and $1,825,000,000 shall be for Broadband De13 14 15

ployment Grants: Provided, That the National Telecommunications and Information Administration shall submit a report on planned spending and actual obligations describing the use of these funds not later than 120 days after the date of enactment of this Act, and an update report not later than 60 days following the initial report, to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate: Provided further, That notwithstanding section 1103 of this Act, 50 percent of the grants made available under this heading shall be awarded not later than HR 1 PP

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1

2

2

September 30, 2009: Provided further, That up to 20 per-

3

cent of the funds provided under this heading for Wireless

4

Deployment Grants and Broadband Deployment Grants

5 6

may be transferred between these programs: Provided fur-

7

ther, That the Committees on Appropriations of the House

8

of Representatives and the Senate shall be notified at least

9

15 days in advance of any transfer.

10

DIGITAL-TO -ANALOG CONVERTER BOX PROGRAM

11

Notwithstanding any other provision of law, and in addition 12 13

to amounts otherwise provided in any other Act, for costs

14

associated with the Digital-to-Analog Converter Box

15

Program, $650,000,000, to be available until September 30, 2009: Provided, That these funds shall be available for coupons and related activities, including but not limited to education, consumer support and outreach, as deemed appropriate and necessary to ensure a timely conversion of analog to digital television. N ATIONAL INSTITUTE OF S TANDARDS AND T ECHNOLOGY SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES For

an

additional amount for ‘‘Scientific and Technical Research and Services’’, $100,000,000. INDUSTRIAL TECHNOLOGY SERVICES

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2

1 2 3 4

For an additional amount for ‘‘Industrial Technology Services’’, $100,000,000, of which $70,000,000 shall be available for the necessary expenses of the Technology In-

5 6

novation Program and $30,000,000 shall be available for

7

the necessary expenses of the Hollings Manufacturing Ex-

8

tension Partnership.

9 10 11

CONSTRUCTION OF RESEARCH FACILITIES

For an additional amount for ‘‘Construction of Research Facilities’’, as authorized by sections 13 through 15

12 13

of the Act of March 13, 1901 (15 U.S.C. 278c–278e),

14

$300,000,000, for a competitive construction grant program

15

for research science buildings: Provided further, That for peer-reviewed grants made under this heading, the time limitation provided in section 1103(b) of this Act shall be 120 days. N ATIONAL O CEANIC AND A TMOSPHERIC A DMINISTRATION OPERATIONS,

RESEARCH ,

AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facilities’’, $400,000,000, for habitat restoration and mitigation activities. PROCUREMENT, ACQUISITION AND CONSTRUCTION

For an

additional amount for ‘‘Procurement, Acquisition and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Construction’’, $600,000,000, for accelerating satellite

3

development and acquisition, acquiring climate sensors and

4

climate modeling capacity, and establishing climate data

5 6

records: Provided further, That not less than $140,000,000 shall be available for climate data modeling.

7

Subtitle B—Justice

8 9 10

DEPARTMENT OF JUSTICE S TATE AND LOCAL LAW E NFORCEMENT A CTIVITIES O FFICE OF

11 12 13

J USTICE P ROGRAMS STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an additional amount for ‘‘State and Local

14

Law Enforcement Assistance’’, $3,000,000,000, to be

15

available for the Edward Byrne Memorial Justice Assistance Grant Program as authorized by subpart 1 of part E of title I of the Omnibus Crime Control and Safe Streets Act of 1968, (except that section 1001(c), and the special rules for Puerto Rico under section 505(g), of such Act shall not apply for purposes of this Act): Provided, That section 1106 of this Act shall not apply to funds provided under this heading. COMMUNITY ORIENTED POLICING SERVICES

For an additional amount for ‘‘Community Oriented Policing Services’’, $1,000,000,000, to be available for grants under section 1701 of title I of the 1968 Act (42 U.S.C. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

3796dd) for the hiring and rehiring of additional career law

3

enforcement

4

officers

under

part

Q

of

such

title

notwithstanding subsection (i) of such section: Provided, That

5 6

for peer-reviewed grants made under this heading, the time

7

limitation provided in section 1103(b) of this Act shall be 120

8

days.

9

GENERAL PROVISIONS, THIS SUBTITLE

10 11

SEC. 3201. WAIVER OF MATCHING REQUIREMENT AND SAL

12

ARY LIMIT UNDER COPS PROGRAM.

13

Sections 1701(g) and 1704(c) of the Omnibus Crime

14 15

Control and Safe Street Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd–3(c)) shall not apply with respect to funds appropriated in this or any other Act making appropriations for fiscal year 2009 or 2010 for Community Oriented Policing Services authorized under part Q of such Act of 1968.

Subtitle C—Science NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SCIENCE

For ‘‘Science’’,

an

additional

amount

for

$400,000,000, of which not less than

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2

1 2

$250,000,000 shall be solely for accelerating the development

3

of the tier 1 set of Earth science climate research missions

4

recommended by the National Academies Decadal Survey.

5 AERONAUTICS

6 7 8

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

9 CROSS AGENCY SUPPORT PROGRAMS

10 11

For an additional amount for ‘‘Cross Agency Support

12

Programs’’, for necessary expenses for restoration and

13

mitigation of National Aeronautics and Space Administra-

14

tion owned infrastructure and facilities related to the con-

15

sequences of hurricanes, floods, and other natural disasters occurring during 2008 for which the President declared a major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1974, $50,000,000. NATIONAL SCIENCE FOUNDATION RESEARCH AND RELATED ACTIVITIES

For an additional amount for ‘‘Research and Related Activities’’, $2,500,000,000: Provided, That $300,000,000 shall be available solely for the Major Research Instrumentation program and $200,000,000 shall be for activities

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1

2

2

authorized by title II of Public Law 100–570 for academic

3

research facilities modernization: Provided, That for

4

peer-reviewed grants made under this heading, the time

5 6 7

limitation provided in section 1103(b) of this Act shall be 120 days. EDUCATION AND HUMAN RESOURCES

8 9 10 11

For an additional amount for ‘‘Education and Human Resources’’,

$100,000,000:

Provided,

That $60,000,000 shall be for activities authorized by section

12 13

7030 of Public Law 110–69 and $40,000,000 shall be for

14

activities authorized by section 9 of the National Science

15

Foundation Authorization Act of 2002 (42 U.S.C. 1862n). MAJOR RESEARCH EQUIPMENT AND FACILITIES CONSTRUCTION

For an additional amount for ‘‘Major Research Equipment and Facilities Construction’’, $400,000,000, which shall be available only for approved projects.

TITLE IV—DEFENSE DEPARTMENT OF DEFENSE FACILITY INFRASTRUCTURE INVESTMENTS, D EFENSE For expenses, not otherwise provided for, to improve, repair and modernize Department of Defense facilities, restore and modernize Army barracks, and invest in the energy HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

efficiency of Department of Defense facilities,

3

$4,500,000,000, for Facilities Sustainment, Restoration and

4

Modernization programs of the Department of Defense

5 6 7

(including minor construction and major maintenance and repair), which shall be available as follows: 1.

8 9

‘‘Operation and

Maintenance,

Army’’, $1,490,804,000.

10

2.

‘‘Operation and

Maintenance,

11

Navy’’, $624,380,000. 12

3.

13

‘‘Operation and

Maintenance,

Marine Corps’’, $128,499,000.

14 15

(4) ‘‘Operation and Maintenance, Air Force’’, $1,236,810,000. (5) ‘‘Defense Health Program’’, $454,658,000. (6) ‘‘Operation and Maintenance, Army Reserve’’, $110,899,000. (7) ‘‘Operation and Maintenance, Navy Reserve’’, $62,162,000. (8) ‘‘Operation and Maintenance, Marine Corps Reserve’’, $45,038,000. (9) ‘‘Operation and Maintenance, Air Force Reserve’’, $14,881,000. (10) ‘‘Operation and Maintenance, Army National HR 1 PP

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1

2

2

Guard’’, $302,700,000.

3 4

(11) ‘‘Operation and Maintenance, Air National Guard’’, $29,169,000.

5 6

E NERGY R ESEARCH AND D EVELOPMENT, D EFENSE For

7

expenses, not otherwise provided for, for research,

8

development, test and evaluation programs for im-

9

provements in energy generation, transmission, regulation,

10

use, and storage, for military installations, military vehicles,

11

and other military equipment, $350,000,000, which shall be 12 13

available as follows: (1) ‘‘Research, Development, Test and Evalua-

14 15

tion, Army’’, $87,500,000. (2) ‘‘Research, Development, Test and Evaluation, Navy’’, $87,500,000. (3) ‘‘Research, Development, Test and Evaluation, Air Force’’, $87,500,000. (4) ‘‘Research, Development, Test and Evaluation, Defense-Wide’’, $87,500,000

TITLE V—ENERGY AND WATER DEPARTMENT OF THE ARMY C ORPS OF E NGINEERS—C IVIL CONSTRUCTION

For an additional amount for ‘‘Construction’’, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

$2,000,000,000: Provided, That section 102 of Public Law

3

109–103 (33 U.S.C. 2221) shall not apply to funds

4

provided in this paragraph: Provided further, That not-

5 6

withstanding any other provision of law, funds provided in

7

this paragraph shall not be cost shared with the Inland

8

Waterways Trust Fund as authorized in Public Law 99–

9

662: Provided further, That funds provided in this para-

10

graph may only be used for programs, projects or activities

11

previously funded: Provided further, That the Corps of En12 13

gineers is directed to prioritize funding for activities based

14

on the ability to accelerate existing contracts or fully fund

15

project elements and contracts for such elements in a time period of 2 years after the date of enactment of this Act giving preference to projects and activities that are labor intensive: Provided further, That funds provided in this paragraph shall be used for elements of projects, programs or activities that can be completed using funds provided herein: Provided further, That funds appropriated in this paragraph may be used by the Secretary of the Army, acting through the Chief of Engineers, to undertake work authorized to be carried out in accordance with one or more of section 14 of the Flood Control Act of 1946 (33 U.S.C.

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2

1 2

701r), section 205 of the Flood Control Act of 1948 (33

3

U.S.C. 701s), section 206 of the Water Resources Devel-

4

opment Act of 1996 (33 U.S.C. 2330), and section 1135 of

5 6

the Water Resources Development Act of 1986 (33 U.S.C.

7

2309a), notwithstanding the program cost limitations set

8

forth in those sections: Provided further, That the limitation

9

concerning total project costs in section 902 of the Water

10

Resources Development Act of 1986, as amended (33

11

U.S.C. 2280), shall not apply during fiscal year 2009 to any 12 13

project that received funds provided in this title: Provided

14

further, That for projects that are being completed with

15

funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary of the Army shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the allocation, obligation and expenditures of these funds, beginning not later than 45 days after enactment of this Act.

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1

MISSISSIPPI RIVER AND TRIBUTARIES

2 3 4 5

For an additional amount for ‘‘Mississippi River and Tributaries’’, $250,000,000: Provided, That funds provided in this paragraph may only be used for programs, projects,

6 7

or activities previously funded: Provided further, That the

8

Corps of Engineers is directed to prioritize funding for

9

activities based on the ability to accelerate existing

10 11

contracts or fully fund project elements and contracts for such elements in a time period of 2 years after the date of

12 13

enactment of this Act giving preference to projects and

14

activities that are labor intensive: Provided further, That

15

funds provided in this paragraph shall be used for elements of projects, programs, or activities that can be completed using funds provided herein: Provided further, That for projects that are being completed with funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided fur ther, 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, HR 1 PP

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1

2

2

obligation and expenditures of these funds, beginning not

3

later than 45 days after enactment of this Act.

4 5

OPERATION AND MAINTENANCE

For an additional amount for ‘‘Operation and Main-

6 7

tenance’’, $2,225,000,000: Provided, That the Corps of

8

Engineers is directed to prioritize funding for activities

9

based on the ability to accelerate existing contracts or fully

10

fund project elements and contracts for such elements in a

11

time period of 2 years after the date of enactment of this

12 13

Act giving preference to projects and activities that are

14

labor intensive: Provided further, That funds provided in

15

this paragraph shall be used for elements of projects, programs, or activities that can be completed using funds provided herein: Provided further, That for projects that are being completed with funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary of the Army shall submit a quarterly report to the Committees on Appropriations of the House of Represent

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2

1 2

atives and the Senate detailing the allocation, obligation and

3

expenditures of these funds, beginning not later than 45 days

4

after enactment of this Act.

5 REGULATORY PROGRAM

6 7 8

For an additional amount for ‘‘Regulatory Program’’, $25,000,000.

9

DEPARTMENT OF THE INTERIOR

10

B UREAU OF R ECLAMATION

11 12

WATER AND RELATED RESOURCES

For an additional amount for ‘‘Water and Related

13 14 15

Resources’’, $500,000,000: Provided, That of the amount appropriated

under this

heading,

not

less

than $126,000,000 shall be used for water reclamation and reuse projects authorized under title XVI of Public Law 102–575: Provided further, That of the amount appropriated under this heading, not less than $80,000,000 shall be used for rural water projects and these funds shall be expended primarily on water intake and treatment facilities of such projects: Provided further, That the costs of reimbursable activities, other than for maintenance and rehabilitation, carried out with funds made available under this heading shall be repaid pursuant to existing authorities and agreements: Provided further, That the costs of HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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2

2

maintenance and rehabilitation activities carried out with

3

funds provided in this Act shall be repaid pursuant to ex

4

isting authority, except the length of repayment period shall

5 6

be determined on needs-based criteria to be established and

7

adopted by the Commissioner of the Bureau of

8

Reclamation, but in no case shall the repayment period

9

exceed 25 years.

10

DEPARTMENT OF ENERGY

11

ENERGY PROGRAMS

12

E NERGY E FFICIENCY AND R ENEWABLE E NERGY

13 14

For an additional amount for ‘‘Energy Efficiency and

15

Renewable Energy’’, $18,500,000,000, which shall be used as follows: (1) $2,000,000,000 shall be for expenses necessary for energy efficiency and renewable energy research, development, demonstration and deployment activities, to accelerate the development of technologies, to include advanced batteries, of which not less

than $800,000,000

is

for

biomass

and $400,000,000 is for geothermal technologies. (2) $500,000,000 shall be for expenses necessary to implement the programs authorized under part E of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

title III of the Energy Policy and Conservation Act (42

3

U.S.C. 6341 et seq.).

4

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

5 6

to institutional entities for energy sustainability and

7

efficiency under section 399A of the En ergy Policy

8

and Conservation Act (42 U.S.C. 6371h–1).

9 10

(4) $6,200,000,000 shall be for the Weatherization Assistance Program under part A of title IV of the

11

Energy Conservation and Production Act (42 U.S.C. 12 13

6861 et seq.).

14

(5) $3,500,000,000 shall be for Energy Efficiency

15

and Conservation Block Grants, for implementation of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.). (6) $3,400,000,000 shall be for the State Energy Program authorized under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321). (7) $200,000,000 shall be for expenses necessary to implement the programs authorized under section 131 of the Energy Independence and Security Act of

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1

2

2

2007 (42 U.S.C. 17011).

3 4

(8) $300,000,000 shall be for expenses necessary to implement the program authorized under section

5 6 7

124 of the Energy Policy Act of 2005 (42 U.S.C. 15821) and the Energy Star program. (9) $400,000,000 shall be for expenses necessary

8 9 10

to implement the program authorized under section 721 of the Energy Policy Act of 2005 (42 U.S.C.

11

16071). 12

(10) $1,000,000,000 shall be for expenses nec-

13 14

essary for the manufacturing of advanced batteries

15

authorized under section 136(b)(1)(B) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17013(b)(1)(B)): Provided, That notwithstanding section 3304 of title 5, United States Code, and without regard to the provisions of sections 3309 through 3318 of such title 5, the Secretary of Energy may, upon a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified individuals into the competitive service: Provided further, That such authority shall not apply to positions in the

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2

1 2

Excepted Service or the Senior Executive Service:

3

Provided further, That any action authorized herein shall

4

be consistent with the merit principles of section 2301 of

5 6

such title 5, and the Department shall comply with the

7

public notice requirements of section 3327 of such title 5.

8

E LECTRICITY D ELIVERY AND E NERGY R ELIABILITY For an

9 10

additional amount for ‘‘Electricity Delivery and Energy Reliability,’’ $4,500,000,000: Provided, That funds shall

11

be available for expenses necessary for elec tricity delivery 12 13

and energy reliability activities to modernize the electric

14

grid, enhance security and reliability of the energy

15

infrastructure, energy storage research, development, demonstration and deployment, and facilitate recovery from disruptions to the energy supply, and for implementation of programs authorized under title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.): Provided further, That of such amounts, $100,000,000 shall be for worker training: Provided further, That the Secretary of Energy may use or transfer amounts provided under this heading to carry out new authority for transmission improvements, if such authority is enacted in any subsequent Act, consistent with existing fiscal

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1 2 3 4

management practices and procedures. A DVANCED B ATTERY LOAN G UARANTEE P ROGRAM For the cost of guaranteed loans as authorized by section 135 of the

5 6

Energy Independence and Security Act of 2007 (42 U.S.C.

7

17012), $1,000,000,000, to remain available until

8

expended: Provided, That of such amount, $10,000,000

9

shall be used for administrative expenses in carrying out the

10

guaranteed loan program, and shall be in lieu of the amount

11

set aside under section 1106 of this Act: Provided further, 12 13

That the cost of such loans, including the cost of modifying

14

such loans, shall be as defined in section 502 of the

15

Congressional Budget Act of 1974. INSTITUTIONAL LOAN G UARANTEE P ROGRAM For the cost of guaranteed loans as authorized by section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1), $500,000,000: Provided, That of such amount, $10,000,000 shall be used for administrative expenses in carrying out the guaranteed loan program, and shall be in lieu of the amount set aside under section 1106 of this Act: Provided further, That the cost of such loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

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1 2

INNOVATIVE T ECHNOLOGY LOAN G UARANTEE P ROGRAM For

3

an additional amount for ‘‘Innovative Technology Loan

4

Guarantee Program’’ for the cost of guaranteed loans

5 6

authorized by section 1705 of the Energy Policy Act of

7

2005, $8,000,000,000: Provided, That of such amount,

8

$25,000,000 shall be used for administrative expenses in

9

carrying out the guaranteed loan program, and shall be in

10

lieu of the amount set aside under section 1106 of this Act:

11

Provided further, That the cost of such loans, including the 12 13 14

cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

15

FOSSIL E NERGY For an additional amount for ‘‘Fossil Energy’’, $2,400,000,000 for necessary expenses to demonstrate carbon capture and sequestration technologies as authorized under section 702 of the Energy Independence and Security Act of 2007. S CIENCE For

an

additional

amount

for

‘‘Science’’, $2,000,000,000: Provided, That of such amounts, not less than $400,000,000 shall be used for the Advanced Research Projects Agency—Energy authorized under section 5012 of the America COMPETES Act (42 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

U.S.C. 16538): Provided further, That of such amounts,

3

not less than $100,000,000 shall be used for advanced

4

scientific computing.

5 6

ENVIRONMENTAL AND OTHER DEFENSE

7

ACTIVITIES D EFENSE E NVIRONMENTAL C LEANUP For an

8

additional amount for ‘‘Defense Environmental Cleanup,’’

9

$500,000,000: Provided, That such amounts shall be used

10

for elements of projects, programs, or activities that can be

11

completed using funds provided herein. 12

GENERAL PROVISIONS, THIS TITLE

13 14

SEC. 5001. WESTERN AREA POWER ADMINISTRATION BOR ROWING AUTHORITY.

15

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 BOR ROWING AUTHORITY.

‘‘(a) D EFINITIONS.—In this section— ‘‘(1) A DMINISTRATOR.—The term ‘Administrator’ means the Administrator of the Western Area Power Administration.

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1

‘‘(2) S ECRETARY .—The term ‘Secretary’ means

2 3

the Secretary of the Treasury. ‘‘(b) A UTHORITY .—

4

‘‘(1) IN

GENERAL.—Notwithstanding

any other

5 6

provision of law, subject to paragraphs (2) through (5)—

7

‘‘(A) the Western Area Power Administra-

8 9

tion may borrow funds from the Treasury; and

10

‘‘(B) the Secretary shall, without further

11

appropriation and without fiscal year limitation, 12

loan to the Western Area Power Administration,

13 14

on such terms as may be fixed by the Ad-

15

ministrator and the Secretary, such sums (not to exceed, in the aggregate (including deferred interest), $3,250,000,000 in outstanding repayable balances at any 1 time) as, in the judg ment of the Administrator, are from time to time required for the purpose of— ‘‘(i) constructing, financing, facilitating, or studying construction of new or upgraded electric power transmission lines and related facilities with at least 1 terminus within the area served by the Western Area Power

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2

1

Administration; and

2 3

‘‘(ii) delivering or facilitating the de-

4

livery of power generated by renewable en-

5

ergy resources constructed or reasonably

6 7

expected to be constructed after the date of

8

enactment of this section.

9 10

‘‘(2) INTEREST.—The rate of interest to be charged in connection with any loan made pursuant to

11

this subsection shall be fixed by the Secretary, taking 12 13

into consideration market yields on outstanding

14

marketable obligations of the United States of

15

comparable maturities as of the date of the loan. ‘‘(3) R EFINANCING .—The Western Area Power Administration may refinance loans taken pursuant to this section within the Treasury. ‘‘(4) P ARTICIPATION .—The Administrator may permit other entities to participate in projects financed under this section. ‘‘(5) C ONGRESSIONAL 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

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2

1 2

Administrator seeks to borrow funds above

3

$1,750,000,000, the funds will be disbursed unless

4

there is enacted, within 90 calendar days of the first

5 6

such request, a joint resolution that rescinds the re-

7

mainder of the balance of the borrowing authority

8

provided in this section.

9

‘‘(c) T RANSMISSION LINE AND R ELATED FACILITY

10

P ROJECTS.—

11

‘‘(1) IN GENERAL.—For repayment purposes, 12 13

each transmission line and related facility project in

14

which the Western Area Power Administration par-

15

ticipates 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)

P ROCEEDS.—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— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) to pay for any ancillary services that

2 3

are provided; and

4

‘‘(B) to meet the costs of operating and

5

maintaining the new project from which the

6 7

revenues are derived.

8

‘‘(3) S OURCE OF REVENUE.—Revenue from the use

9

of projects under this section shall be the only source of

10

revenue for—

11

‘‘(A) repayment of the associated loan for 12

the project; and

13

‘‘(B) payment of expenses for ancillary

14 15

services and operation and maintenance. ‘‘(4) LIMITATION ON AUTHORITY .—Nothing in this section confers on the Administrator any obligation to provide ancillary services to users of transmission facilities developed under this section. ‘‘(d) C ERTIFICATION .— ‘‘(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;

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1 2

‘‘(B) the project will not adversely impact system

3

reliability or operations, or other statutory

4

obligations; and

5

‘‘(C) it is reasonable to expect that the

6 7

proceeds from the project shall be adequate to

8

make repayment of the loan.

9

‘‘(2) FORGIVENESS OF BALANCES.—

10

‘‘(A) IN GENERAL.—If, at the end of the

11

useful life of a project, there is a remaining bal-

12

ance owed to the Treasury under this section, the

13

balance shall be forgiven.

14 15

‘‘(B) U NCONSTRUCTED PROJECTS.—Funds expended to study projects that are considered pursuant to this section but that are not constructed shall be forgiven. ‘‘(C) N OTIFICATION .—The Administrator shall notify the Secretary of such amounts as forgiven

under

this

paragraph.

are to be

‘‘(e)

P UBLIC

P ROCESSES.— ‘‘(1) P OLICIES 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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section.

3 4

‘‘(2)

R EQUESTS

FOR

INTERESTS.—In

the

course of selecting potential projects to be funded

5 6

under this section, the Administrator shall seek re-

7

quests for interest from entities interested in identifying

8

potential projects through one or more notices

9

published in the Federal Register.’’.

10

SEC. 5002. BONNEVILLE POWER ADMINISTRATION.

11

For the purposes of providing funds to assist in fi-

12 13

nancing the construction, acquisition, and replacement of

14

the transmission system of the Bonneville Power Adminis-

15

tration and to implement the authority of the Administrator under the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et seq.), an additional $3,250,000,000 in borrowing authority is made available under the Federal Columbia River Transmission System Act (16 U.S.C. 838 et seq.), to remain outstanding at any time. SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY.

Not to exceed 20 percent of the amounts made available in this Act to the Department of Energy for ‘‘Energy Efficiency and Renewable Energy’’, ‘‘Electricity Delivery and Energy Reliability’’, and ‘‘Advanced Battery Loan HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Guarantee Program’’ may be transferred within and be-

3

tween such accounts, except that no amount specified under

4

any such heading may be increased or decreased by more

5 6

than a total of 20 percent by such transfers, and notification

7

of such transfers shall be submitted promptly to the

8

Committees on Appropriations of the House of Rep-

9

resentatives and the Senate.

10 11 12 13

TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT Subtitle A—General Services

14

G ENERAL S ERVICES A DMINISTRATION

15

FEDERAL BUILDINGS FUND LIMITATIONS ON AVAILABILITY OF REVENUE (INCLUDING TRANSFER OF FUNDS)

For an additional amount to be deposited in the Federal Buildings Fund, $7,700,000,000 for real property activities with priority given to activities that can commence promptly following enactment of this Act; of which up to $1,000,000,000 shall be used for construction, repair, and alteration of border facilities and land ports of entry; of which not less than $6,000,000,000 shall be used for construction, repair, and alteration of Federal buildings for projects that will create the greatest impact on energy effiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

ciency and conservation; of which $108,000,000 shall re-

3

main available until September 30, 2012, and shall be used

4

for rental of space costs associated with the construction,

5 6

repair, and alteration of these projects; Provided, That of

7

the amounts provided, $160,000,000 shall remain available

8

until September 30, 2012, and shall be for building

9

operations in support of the activities described in this

10

paragraph: Provided further, That the preceding proviso

11

shall apply to this appropriation in lieu of the provisions of 12 13

section 1106 of this Act: Provided further, That the Ad-

14

ministrator of General Services is authorized to initiate

15

design, construction, repair, alteration, leasing, and other projects through existing authorities of the Administrator: Provided further, That the Administrator shall submit a detailed plan, by project, regarding the use of funds to the Committees on Appropriations of the House of Representatives and the Senate within 30 days after enactment of this Act, and shall provide notification to the Committees within 15 days prior to any changes regarding the use of these funds: Provided further, That the Administrator shall report to the Committees on the obligation of these funds on a quarterly basis beginning on June 30, 2009: Provided

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2

1 2

further, That of the amounts provided, $4,000,000 shall be

3

transferred to and merged with ‘‘Government-Wide

4

Policy’’, for the Office of Federal High-Performance Green

5 6 7

Buildings as authorized in the Energy Independence and Security Act of 2007 (Public Law 110– 140).

8

ENERGY EFFICIENT FEDERAL MOTOR VEHICLE FLEET

9 PROCUREMENT

10 11

For capital expenditures and necessary expenses of the

12

General Services Administration’s Motor Vehicle Ac-

13

quisition and Motor Vehicle Leasing programs for the ac-

14

quisition of motor vehicles, including plug-in and alternative

15

fuel vehicles, $600,000,000: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section: Provided further, That none of these funds may be obligated until the Administrator of General Services submits to the Committees on Appropriations of the House of Representatives and the Senate, within 90 days after enactment of this Act, a plan for expenditure of the funds that details the current inventory of the Federal fleet owned by the General Services Administration, as well as other Federal agencies, and the

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1

2

2

strategy to expend these funds to replace a portion of the

3

Federal fleet with the goal of substantially increasing energy

4

efficiency over the current status, including increasing fuel

5 6

efficiency and reducing emissions: Provided further, That

7

the Administrator shall report to the Committees on the

8

obligation of these funds on a quarterly basis beginning on

9

June 30, 2009.

10

Subtitle B—Small Business

11 12

S MALL B USINESS A DMINISTRATION

13

BUSINESS LOANS PROGRAM ACCOUNT

14

(INCLUDING TRANSFERS OF FUNDS)

15

For the cost of direct loans and loan guarantees authorized by sections 6202 through 6205 of this Act, $426,000,000: Provided, That such cost, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. In addition, for administrative expenses to carry out the direct loan and loan guarantee programs authorized by this Act, $4,000,000, which may be transferred to and merged with the appropriations for Salaries and Expenses: Provided, That this sentence shall apply to this appropriation in lieu of the provisions of section 1106 of this Act.

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2

1 2 3

GENERAL PROVISIONS, THIS SUBTITLE SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR

4 5

SMALL BUSINESSES.

(a) P URPOSE.—The purpose of this section is to permit

6

the Small Business Administration to guarantee up to 95 7 8 9 10

percent of qualifying small business loans made by eligible lenders. (b) D EFINITIONS.—For purposes of this section:

11 12

(1) The term ‘‘Administrator’’ means the Administrator of the Small Business Administration.

13 14 15

(2) The term ‘‘qualifying small business loan’’ means any loan to a small business concern that would be eligible for a loan guarantee under section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following). (3) The term ‘‘small business concern’’ has the same meaning as provided by section 3 of the Small Business Act (15 U.S.C. 632). (c) A PPLICATION .—In order to participate in the loan guarantee program under this section a lender shall submit an application to the Administrator for the guarantee of up

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2

1 2

to 95 percent of the principal amount of a qualifying small

3

business loan. The Administrator shall approve or deny

4

each such application within 5 business days after receipt

5 6 7

thereof. The Administrator may not delegate to lenders the authority to approve or disapprove such applications.

8

(d) FEES.—The Administrator may charge fees for

9

guarantees issued under this section. Such fees shall not

10

exceed the fees permitted for loan guarantees under section

11

7(a) of the Small Business Act (15 U.S.C. 631 and 12 13

following).

14

(e) INTEREST R ATES.—The Administrator may not

15

guarantee under this section any loan that bears interest at a rate higher than 3 percent above the higher of either of the following as quoted in the Wall Street Journal on the first business day of the week in which such guarantee is issued:

(1)

The

London

interbank

offered

rate (LIBOR) for a 3-month period. (2) The Prime Rate. (f) Q UALIFIED B ORROWERS.— (1) A LIENS UNLAWFULLY PRESENT IN THE UNITED STATES.—A

loan guarantee may not be made under

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2

1 2

individual who is an alien unlawfully present in the

3

United States—

4

(A) has an ownership interest in that concern;

5

or

6 7

(B) has an ownership interest in another

8

concern that itself has an ownership interest in that

9

concern.

10

(2) FIRMS IN VIOLATION OF IMMIGRATION

11 LAWS.—No

loan guarantee may be made under this

12 13

section for a loan to any entity found, based on a

14

determination by the Secretary of Homeland Security

15

or the Attorney General to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United States an alien knowing the person is an unauthorized alien. (g) C RIMINAL B ACKGROUND C HECKS.—Prior to the approval of any loan guarantee under this section, the Administrator may verify the applicant’s criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation. (h) A PPLICATION OF O THER LAW .—Nothing in this section

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2

1 2

shall be construed to exempt any activity of the Administrator

3

under this section from the Federal Credit Reform Act of

4

1990 (title V of the Congressional Budget and Impoundment

5 6 7

Control Act of 1974; 2 U.S.C. 661 and following). (i) S UNSET.—Loan guarantees may not be issued under

8

this section after the date 90 days after the date

9

establishment (as determined by the Administrator) of the

10

of

economic recovery program under section 6204.

11

(j) S MALL B USINESS A CT P ROVISIONS.—The provisions 12 13

of the Small Business Act applicable to loan guarantees

14

under section 7 of that Act shall apply to loan guarantees

15

under this section except as otherwise provided in this section. (k) A UTHORIZATION .—There are authorized to be appropriated such sums as may be necessary to carry out this section. SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

(a) P URPOSE.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

secondary market.

3

(b) D EFINITIONS.—For purposes of this section:

4

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

5

ministrator of the SBA. 6

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

7

Administration.

8 9

(3) The terms ‘‘Secondary Market Lending Au-

10

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

11

under subsection (c).

12

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

13 14

the market for the purchase and sale of loans origi-

15

nated, 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) R ESPONSIBILITIES, A UTHORITIES, O RGANIZATION , AND

LIMITATIONS.—

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2

1

(1) D ESIGNATION OF SYSTEMICALLY IMPORTANT SBA

2 3 4

SECONDARY MARKET BROKER-DEALERS.—The

Administrator shall establish a process to designate, in

5 6

consultation with the Board of Governors of the

7

Federal Reserve and the Secretary of the Treasury,

8

Systemically Important Secondary Market

9

Broker-Dealers.

10

(2) E STABLISHMENT OF SBA SECONDARY MARKET

11 LENDING AUTHORITY .—

12

(A) O RGANIZATION .—

13

(i) The Administrator shall establish

14 15

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, origi nated, 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 HR 1 PP

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2

1

operate the Authority.

2 3

(iv) The Administrator may contract

4

such Authority operations as he determines

5

necessary to qualified third-party companies

6

or individuals.

7 8

(v) The Administrator is authorized to

9

contract with private sector fiduciary and

10

custodial agents as necessary to operate the

11

Authority. 12

(B) LOANS.—

13 14

(i) The Administrator shall establish by

15

rule a process under which Systemically Important SBA Secondary Market BrokerDealers 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 HR 1 PP

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2

1 2

section are for the sole purpose of fi-

3

nancing the inventory of the government

4

guaranteed portion of loans, originated,

5

underwritten, and closed under the

6 7

Small Business Act or pools of such

8

loans.

9

(II) That loans made under this

10

section are fully collateralized to the

11

satisfaction of the Administrator. 12

(III) That there is no limit to the

13 14

frequency in which a borrower may

15

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.

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2

1

(iv) The rule under this section shall

2 3

provide for such loan documents, legal cov-

4

enants, collateral requirements and other

5

required documentation as necessary to

6 7

protect the interests of the agency, the

8

United States, and the taxpayer.

9

(v) The Administrator shall establish

10

custodial accounts to safeguard any collateral

11

pledged to the SBA in connection with a 12

loan under this section.

13

(vi) The Administrator shall establish

14 15

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; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(ii) prohibit the borrower, its affiliates,

3

or any future corporate manifestation of the

4

borrower from using the Authority; and

5

(iii) take any other actions the Ad-

6 7

ministrator, in consultation with the Attorney

8

General of the United States, deems

9

appropriate.

10

(d) R EPORT TO C ONGRESS.—The Administrator shall

11

submit a report to Congress not later than the third business 12 13 14

day of each month containing a statement of each of the following:

15

(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

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2

1 2

Administrator to misuse funds made available under this

3

section.

4

(7) Any other information the Administrator

5 6

deems necessary to fully inform Congress of undue

7

risk of financial loss to the United States in connection

8

with loans made under this section.

9

(e) D URATION .—The authority of this section shall

10

remain in effect for a period of 2 years after the date of

11

enactment of this section. 12 13

(f) FUNDING .—Such sums as necessary are authorized

14

to be appropriated to carry out the provisions of this

15

section. (g) B UDGET T REATMENT.—Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following). (h) E MERGENCY R ULEMAKING A UTHORITY .—The Administrator shall promulgate regulations under this section within 15 days after the date of enactment of enactment of this section. In promulgating these regulations, the Administrator the notice requirements of section 553(b) of

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2

1 2 3

title 5 of the United States Code shall not apply. SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET

4 5

GUARANTEE AUTHORITY.

(a) P URPOSE.—The purpose of this section is to provide

6

the Administrator with the authority to establish the SBA 7 8 9 10 11

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) D EFINITIONS.—For purposes of this section:

12

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

13 14

ministrator of the Small Business Administration. (2) The term ‘‘first lien position 504 loan’’ means

15

the first mortgage position, non-federally guaranteed loans made by private sector lenders made under title V of the Small Business Investment Act. (c) E STABLISHMENT OF A UTHORITY .— (1) O RGANIZATION .— (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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(C) The Administrator is authorized to hire

2 3

such personnel as are necessary to operate

4

the

Authority and may contract such operations of the

5

Authority as necessary to qualified third- party

6

companies or individuals.

7

(D) The Administrator is authorized to

8 9

contract with private sector fiduciary and custodial

10

agents as necessary to operate the Authority.

11

(2) G UARANTEE PROCESS.— 12

(A) The Administrator shall establish, by

13 14

rule, a process in which private sector entities

15

may apply to the Administration for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors. (B) The Administrator shall appoint a Director of the Authority who shall report to the Administrator. (C) The Administrator is authorized to hire such personnel as are necessary to operate

the

Authority and may contract such operations of the Authority as necessary to qualified third- party companies or individuals. (D) The Administrator is authorized to HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

contract with private sector fiduciary and custodial

3

agents as necessary to operate the Authority.

4

(3) R ESPONSIBILITIES.—

5

(A) The Administrator shall establish, by rule, 6

a process in which private sector entities may apply

7 8

to the SBA for a Federal guarantee on pools of first

9

lien position 504 loans that are

10

to be sold to

third-party investors.

11

(B) The rule under this section shall provide

12

for a process for the Administrator to consider and

13 14

make decisions regarding whether to extend a

15

Federal guarantee referred to in clause (i). Such rule shall also provide that: (i) The seller of the pools purchasing a guarantee under this section retains not less than 5 percent of the dollar amount of the pools to be sold to third-party investors. (ii) The seller of such pools shall absorb any and all losses resulting from a shortage or excess of monthly cash flows. (iii) The Administrator shall receive a monthly fee of not more than 50 basis points on the outstanding balance of the dollar HR 1 PP

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2

1

amount of the pools that are guaranteed.

2 3

(iv) The Administrator may guarantee not

4

more than $3,000,000,0000 of pools under

5

this authority.

6

(C) The Administrator shall establish doc-

7 8

uments, legal covenants, and other required

9

documentation to protect the interests of the

10

United States.

11

(D) The Administrator shall establish a 12

process to receive and disburse funds to entities

13

under the authority established in this section.

14 15

(d) LIMITATIONS.— (1) The Administrator shall ensure that entities purchasing a guarantee under this section are using such guarantee for the purpose of selling 504 first

lien

position pools to third-party investors. (2) If the Administrator finds that any such guarantee was used for a purpose other than that specified in paragraph (1), the Administrator shall— (A) terminate such guarantee immediately, (B) prohibit the purchaser of the guarantee or its affiliates (within the meaning of the regulations under 13 CFR 121.103) from using the authority HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

of this section in the future; and

2 3

(C) take any other actions the Administrator, in

4 5

consultation with the Attorney General of the United

6

States deems appropriate.

7 8

(e) O VERSIGHT.—The Administrator shall submit a report to Congress not later than the third business day of each

9 10

month setting forth each of the following: (1) The aggregate amount of guarantees extended

11 12

under this section during the proceeding month.

13 14

(2) The aggregate amount of guarantees outstanding.

15

(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) D URATION

OF

P ROGRAM .—The authority of this

section shall terminate on the date 2 years after the date of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

enactment of this section. (g) FUNDING .—Such sums as necessary are authorized to be appropriated to carry out the provisions of this

5 6 7

section. (h) B UDGET T REATMENT.—Nothing in this section shall

8

be construed to exempt any activity of the Administrator

9

under this section from the Federal Credit Reform Act of

10

1990 (title V of the Congressional Budget and Impoundment

11

Control Act of 1974; 2 U.S.C. 661 and following). 12 13

(i)

E MERG EN CY R ULEM AK IN G A UTH ORITY .— The

14

Administrator shall issue regulations under this section within

15

15 days after the date of enactment of this section. The notice requirements of section 553(b) of Title 5, United States Code shall not apply to the promulgation of such regulations. SEC. 6204. ECONOMIC RECOVERY PROGRAM.

(a) P URPOSE.—The purpose of this section is to establish a new lending and refinancing authority within the Small Business Administration. (b) D EFINITIONS.—For purposes of this section: (1) The term ‘‘Administrator’’ means the Administrator of the Small Business Administration. (2) The term ‘‘small business concern’’ has the same meaning as provided by section 3 of the Small HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

Business Act (15 U.S.C. 632). (c) R EFINANCING A UTHORITY .—

4

(1) IN GENERAL.—Upon application from a lender

5

(and with consent of the borrower), the Administrator 6 7

may refinance existing non-Small Business

8

Administration or Small Business Administration loans

9

(including loans under sections 7(a) and 504 of the

10

Small Business Act) made to small business concerns.

11

(2) E LIGIBLE LOANS.—In order to be eligible for

12 13

refinancing under this section—

14

(A) the amount of the loan refinanced may not

15

exceed $10,000,000 and a first lien must be conveyed to the Administrator; (B) the lender shall offer to accept from the Administrator as full repayment of the loan

an

amount equal to less than 100 percent but more than 85 percent of the remaining balance of the principal of the loan; and (C) the loan to be refinanced was made before the date of enactment of this Act and for a purpose that would have been eligible for a loan under any Small Business Administration lending program. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(3) T ERMS.—The term of the refinancing by the

2 3 4

Administrator under this section shall not be less than remaining term on the loan that is refinanced but shall

5 6

not exceed a term of 20 years. The rate of interest on

7

the loan refinanced under this section shall be fixed by

8

the Administrator at a level that the Administrator

9

determines will result in manageable monthly

10

payments for the borrower.

11

(4) LIMIT.—The Administrator may not refinance 12 13

amounts under this section that are greater than the

14

amount the lender agrees to accept from the

15

Administrator as full repayment of the loan as provided in paragraph (2)(B). (d) U NDERWRITING AND O THER LOAN S ERVICES.— (1) IN GENERAL.—The Administrator is authorized to engage in underwriting, loan closing, funding, and servicing of loans made to small business concerns and to guarantee loans made by other entities to small business concerns. (2) A PPLICATION PROCESS.—The Administrator shall by rule establish a process in which small business concerns may submit applications to the Administrator for the purposes of securing a loan HR 1 PP

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2

1 2

under this subsection. The Administrator shall, at a

3

minimum, collect all information necessary to

4

determine the creditworthiness and repayment ability of

5 6

the borrower. (3) P ARTICIPATION OF LENDERS.—

7

(A) The Administrator shall by rule establish

8 9

a process in which the Administrator makes

10

available loan applications and all accompanying

11

information to lenders for the purpose of such

12

lenders originating, underwriting, closing, and

13

servicing such loans.

14 15

(B) Lenders are eligible to receive loan applications and accompanying information under this paragraph if they participate in the programs established in section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act (15 U.S.C. 695). (C) The Administrator shall first make available such loan applications and accompanying information to lenders within 100 miles of a loan applicant’s principal office. (D) If a lender described in subparagraph (C) does not agree to originate, underwrite, close, HR 1 PP

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2

1 2

and service such loans within 5 business days of

3

receiving the loan applications, the Administrator

4

shall subsequently make available such loan

5

applications and accompanying information to

6 7

lenders in the Preferred Lenders Pro gram under

8

section 7(a)(2)(C)(ii) of the Small Business Act

9

(15 U.S.C. 636).

10

(E) If a lender described in subparagraph

11

(C) or (D) does not agree to originate, underwrite,

12

close, and service such loans within 10 business

13 14

days of receiving the loan applications, the

15

Administrator may originate, underwrite, close, and service such loans as described in paragraph (1) of this subsection. (4) A SSET SALES.—The Administrator shall offer to sell loans made or refinanced by the Administrator under this section. Such sales shall be made through semi-annual public solicitation (in the Federal Register and in other media) of offers to purchase. The Administrator may contract with vendors for due diligence, asset valuation, and other services related to such sales. The Administrator may not sell any loan under this section for less than 90 percent of the net HR 1 PP

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1 2

present value of the loan, as determined and certified

3

by a qualified third-party.

4

(5) LOANS NOT SOLD .—The Administrator shall

5 6

maintain and service loans made by the Administrator

7

under this section that are not sold through the asset

8

sales under this section.

9

(e) D URATION .— The authority of this section shall

10

terminate on the date two years after the date on which the

11

program under this section becomes operational (as 12 13

determined by the Administrator).

14

(f) A PPLICATION OF O THER LAW .—Nothing in this section

15

shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following). (g) Q UALIFIED LOANS.— (1) A LIENS UNLAWFULLY PRESENT IN THE UNITED STATES.—A

loan to any concern shall not be subject to

this section if an individual who is an alien unlawfully present in the United States— (A) has an ownership interest in that concern; or (B) has an ownership interest in another HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

concern that itself has an ownership interest in that

3

concern.

4

(2) FIRMS IN VIOLATION OF IMMIGRATION

5 6

LAWS.—No

loan shall be subject to this section if the

7

borrower is an entity found, based on a determination

8

by the Secretary of Homeland Security or the Attorney

9

General to have engaged in a pattern or practice of

10

hiring, recruiting or referring for a fee, for employment

11

in the United States an alien knowing the person is an 12 13 14 15

unauthorized alien. (h) R EPORTS.—The Administrator shall submit a report to Congress semi-annually setting forth the aggregate amount of loans and geographic dispersion of such loans made, underwritten, closed, funded, serviced, sold, guaranteed, or held by the Administrator under the authority of this section. Such report shall also set forth information concerning loan defaults, prepayments, and recoveries related to loans ,made under the authority of this section. (i) A UTHORIZATION .—There are authorized to be appropriated such sums as may be necessary to carry out this section. SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT LENDING. HR 1 PP

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1 2 3 4

(a) R EFINANCING U NDER THE LOCAL D EVELOPMENT B USINESS LOAN P ROGRAM .—Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is

5 6

amended by adding at the end the following: ‘‘(7) P ERMISSIBLE DEBT REFINANCING .—

7

‘‘(A) IN GENERAL.—Any financing approved

8 9

under this title may include a limited amount of

10

debt refinancing.

11 12

‘‘(B) E XPANSIONS.—If the project involves

13

expansion of a small business concern which has

14

existing indebtedness collateralized by fixed assets,

15

any amount of existing indebtedness that does not exceed 1' 2 of the project cost of the expansion may be refinanced and added to the expansion cost, if— ‘‘(i) the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment; ‘‘(ii) the borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing; and

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2

1 2

‘‘(iii) the financing under section 504

3

will provide better terms or rate of interest

4

than exists on the debt at the time of refi-

5

nancing.’’.

6 7

(b) J OB C REATION G OALS.—Section 501(e)(1) and

8

section 501(e)(2) of the Small Business Investment Act (15

9

U.S.C. 695) are each amended by striking ‘‘$50,000’’ and

10 11

inserting ‘‘$65,000’’. SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT.

12 13

(a) S IMPLIFIED M AXIMUM LEVERAGE LIMITS.—Section

14

303(b) of the Small Business Investment Act of 1958 (15

15

U.S.C. 683(b)) is amended— (1) by striking so much of paragraph (2) as precedes subparagraphs (C) and (D) and inserting the following: ‘‘(2) M AXIMUM 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) M ULTIPLE LICENSES UNDER COMMON

2 3

CONTROL.—The

4

maximum amount of outstanding

leverage made available to two or more

5

companies licensed under section 301(c) of this

6 7

Act that are commonly controlled (as determined

8

by the Administrator) and not under capital

9

impairment may

10

not

exceed

$225,000,000.’’; and

11 12 13

(2) by striking paragraph (4). (b) S IMPLIFIED A GGREGATE INVESTMENT LIMITATIONS.—Section

306(a) of the Small Business Investment

14 15

Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows: ‘‘(a) P ERCENTAGE LIMITATION ON P RIVATE C APITAL.—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 HR 1 PP

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1 2

in the company’s business plan that was approved by the

3

Administrator at the time of the grant of the company’s

4

license.’’.

5 SEC. 6207. GAO REPORT.

6 7

(a) R EPORT.—Not later than 30 days after the enact-

8

ment of this Act, the Comptroller General of the United

9

States shall report to the Congress on the actions of the

10 11

Administrator in implementing the authority established in sections 6201 through 6206 of this Act.

12 13

(b) INCLUDED ITEM .—The report under this section

14

shall include a summary of the activity of the Adminis

15

trator under this section and an analysis of whether he is accomplishing the purpose of increasing liquidity in the secondary market for Small Business Administration loans.

TITLE VII—HOMELAND SECURITY DEPARTMENT OF HOMELAND SECURITY U.S. C USTOMS AND B ORDER P ROTECTION SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $100,000,000, for non-intrusive detection technology to be deployed at sea ports of entry. CONSTRUCTION HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

For

an

additional

amount

for

‘‘Construction’’,

$150,000,000, to repair and construct inspection facilities at land border ports of entry.

5

T RANSPORTATION S ECURITY A DMINISTRATION

6

AVIATION SECURITY

7 8

For an additional amount for ‘‘Aviation Security’’,

9

$500,000,000, for the purchase and installation of explosive

10 11

detection systems and emerging checkpoint technologies: Provided, That the Assistant Secretary of Homeland

12 13

Security (Transportation Security Administration) shall

14

prioritize the award of these funds to accelerate the

15

installations at locations with completed design plans and to expeditiously award new letters of intent. C OAST G UARD ALTERATION OF BRIDGES

For an additional amount for ‘‘Alteration of Bridges’’, $150,000,000, for alteration or removal of obstructive bridges, as authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516): Provided, That the Coast Guard shall award these funds to those bridges that are ready to proceed to construction. FEDERAL E MERGENCY M ANAGEMENT A GENCY EMERGENCY FOOD AND SHELTER HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

For an additional amount for ‘‘Emergency Food and

3

Shelter’’, $200,000,000, to carry out the emergency food

4

and shelter program pursuant to title III of the McKin-

5 6

ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et

7

seq.): Provided, That for the purposes of this appropriation,

8

the redistribution required by section 1104(b) shall be

9

carried out by the Federal Emergency Management Agency

10

and the National Board, who may reallocate and obligate

11

any funds that are unclaimed or returned to the program: 12 13

Provided further, That the amount set aside from this

14

appropriation pursuant to section 1106 of this Act shall be

15

3.5 percent instead of the percentage specified in such section. GENERAL PROVISIONS, THIS TITLE SEC. 7001. EXTENSION OF PROGRAMS.

Section 401(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by striking ‘‘11-year period’’ and inserting ‘‘16-year period’’. SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINIS TRATION PROGRAMS.

(a) FUNDING U NDER A GREEMENT.—Effective for fiscal

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2

1 2

years beginning on or after October 1, 2008, the

3

Commissioner of Social Security and the Secretary of

4

Homeland Security shall enter into and maintain an agreement

5 6

which shall—

7

(1) provide funds to the Commissioner for the full

8

costs of the responsibilities of the Commissioner under

9

section 404 of the Illegal Immigration Reform

10

and

Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a

11

note), including (but not limited to)— 12

(A) acquiring, installing, and maintaining

13 14

technological equipment and systems necessary for

15

the fulfillment of the responsibilities of the Commissioner under such section 404, but only that portion

of such

costs

that

are

attributable

exclusively to such responsibilities; and (B) responding to individuals who contest a tentative nonconfirmation provided by the basic pilot confirmation system established under such section; (2) provide such funds quarterly in advance of the applicable quarter based on estimating methodology agreed to by the Commissioner and the Secretary (except in such instances where the delayed enactment HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

of an annual appropriation may preclude such

3

quarterly payments); and

4

(3) require an annual accounting and reconcili-

5 6

ation of the actual costs incurred and the funds pro-

7

vided under the agreement, which shall be reviewed by

8

the Office of Inspector General of the Social Security

9

Administration and the Department of Homeland

10

Security.

11

(b) C ONTINUATION OF E MPLOYMENT V ERIFICATION IN 12 13

A BSENCE OF T IMELY A GREEMENT.—In any case in which the

14

agreement required under subsection (a) for any fiscal year

15

beginning on or after October 1, 2008, has not been reached as of October 1 of such fiscal year, the latest agreement between the Commissioner and the Secretary of Homeland Security providing for funding to cover the costs of the responsibilities of the Commissioner under section 404 of the Illegal Immigration Reform and Immi grant Responsibility Act of 1996 (8 U.S.C. 1324a note) shall be deemed in effect on an interim basis for such fiscal year until such time as an agreement required under subsection (a) is subsequently reached, except that the terms of such interim agreement shall be modified by the Director of the

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1 2

Office of Management and Budget to adjust for inflation and

3

any increase or decrease in the volume of requests under the

4

basic pilot confirmation system. In any case in which an

5 6

interim agreement applies for any fiscal year under this

7

subsection, the Commissioner and the Secretary shall, not

8

later than October 1 of such fiscal year, notify the

9

Committee on Ways and Means, the Committee on the

10

Judiciary, and the Committee on Appropriations of the

11

House of Representatives and the Committee on Finance, 12 13

the Committee on the Judiciary, and the Committee on

14

Appropriations of the Senate of the failure to reach the

15

agreement required under subsection (a) for such fiscal year. Until such time as the agreement required under subsection (a) has been reached for such fiscal year, the Commissioner and the Secretary shall, not later than the end of each 90-day period after October 1 of such fiscal year, notify such Committees of the status of negotiations between the Commissioner and the Secretary in order to reach such an agreement. SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION SYSTEM.

(a) IN G ENERAL.—As soon as practicable after the date of the enactment of this Act, the Comptroller General of the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

United States shall conduct a study regarding erroneous

3

tentative nonconfirmations under the basic pilot

4

confirmation system established under section 404(a) of the

5 6 7 8 9 10

Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note). (b) M ATTERS T O B E S TUDIED .—In the study required under subsection (a), the Comptroller General shall determine and analyze—

11

(1) the causes of erroneous tentative noncon12 13

firmations under the basic pilot confirmation system; (2) the processes by which such erroneous ten-

14 15

tative nonconfirmations are remedied; and (3) the effect of such erroneous tentative nonconfirmations on individuals, employers, and Federal agencies. (c) R EPORT.—Not later than 2 years after the date of the enactment of this Act, the Comptroller General shall submit the results of the study required under subsection (a) to the Committee on Ways and Means and the Committee on the Judiciary of the House of Representatives and the Committee on Finance and the Committee on the Judiciary of the Senate.

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1 2

SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PRO GRAM ON SMALL ENTITIES.

3 4 5

(a) IN G ENERAL.—Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the

6

United States shall submit to the Committees on the 7 8 9 10 11

Judiciary of the United States House of Representatives and the Senate a report containing the Comptroller General’s analysis of the effects of the basic pilot program described in section 403(a) of the Illegal Immigration Reform and

12

Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 13 14 15

note) on small entities (as defined in section 601 of title 5, United States Code). The report shall detail— (1) the costs of compliance with such program on small entities; (2) a description and an estimate of the number of small entities enrolled and participating in such program or an explanation of why no such estimate is available; (3) the projected reporting, recordkeeping and other compliance requirements of such program on

small

entities; (4) factors that impact small entities’ enrollment and participation in such program, including access to appropriate technology, geography, entity size, and HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

class of entity; and

3 4

(5) the steps, if any, the Secretary of Homeland Security has taken to minimize the economic impact of

5 6

participating in such program on small entities.

7

(b) D IRECT AND INDIRECT E FFECTS.—The report shall

8

cover, and treat separately, direct effects (such as wages,

9

time, and fees spent on compliance) and indirect effects

10

(such as the effect on cash flow, sales, and competi-

11

tiveness). 12 13 14

(c) S PECIFIC C ONTENTS.—The report shall provide specific and separate details with respect to—

15

(1) small businesses (as defined in section 601 of title 5, United States Code) with fewer than 50 employees; and (2) small entities operating in States that have mandated use of the basic pilot program. SEC. 7005. WAIVER OF MATCHING REQUIREMENT UNDER SAFER PROGRAM.

Subparagraph (E) of section 34(a)(1) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not apply with respect to funds appropriated in this or any other Act making appropriations for fiscal year 2009 or 2010 for grants under such section HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

34.

3 SEC. 7006. PROCUREMENT FOR DEPARTMENT OF HOME

4 LAND SECURITY.

5 6

(a) R EQUIREMENT.—Except as provided in subsections

7

(c) through (e), funds appropriated or otherwise available to

8

the Department of Homeland Security may not be used for

9

the procurement of an item described in subsection (b) if

10 11 12 13 14 15

the item is not grown, reprocessed, reused, or produced in the United States. (b) C OVERED ITEMS.—An item referred to in subsection (a) is any of the following, if the item is directly related to the national security interests of the United States: (1) An article or item of— (A) clothing and the materials and components thereof, other than sensors, electronics, or other items added to, and not normally associated with, clothing (and the materials and components thereof); (B) tents, tarpaulins, or covers; (C) cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated

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2

1 2

synthetic fabric (including all textile fibers and

3

yarns that are for use in such fabrics), canvas

4

products, or wool (whether in the form of fiber or

5

yarn or contained in fabrics, materials, or

6

manufactured articles); or

7 8

(D) any item of individual equipment man-

9

ufactured from or containing such fibers, yarns,

10

fabrics, or materials.

11

(c) A VAILABILITY E XCEPTION .—Subsection (a) does 12 13

not apply to the extent that the Secretary of Homeland

14

Security determines that satisfactory quality and sufficient

15

quantity of any such article or item described in subsection (b)(1) grown, reprocessed, reused, or produced in the United States cannot be procured as and when needed. (d) E XCEPTION FOR C ERTAIN P ROCUREMENTS O UTSIDE THE

U NITED S TATES.—Subsection (a) does not apply to the

following: (1) Procurements by vessels in foreign waters. (2) Emergency procurements. (e) E XCEPTION FOR S MALL P URCHASES.—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(f) A PPLICABILITY TO C ONTRACTS AND S UBCONTRACTS

2 3 4

P ROCUREMENT

OF

FOR

C OMMERCIAL ITEMS.—This

section is applicable to contracts and subcontracts for the

5 6

procurement of commercial items not

7

withstanding section 34 of the Office of Federal Procure-

8

ment Policy Act (41 U.S.C. 430).

9 10

(g) G EOGRAPHIC C OVERAGE.—In this section, the term ‘‘United States’’ includes the possessions of the

United

11

States. 12

(h) N OTIFICATION R EQUIRED W ITHIN 7 D AYS A FTER

13 14

C ONTRACT A WARD IF C ERTAIN E XCEPTIONS A PPLIED .—In the

15

case of any contract for the procurement of an item described in subsection (b)(1), if the Secretary of Homeland Security applies an exception set forth in subsection (c) with respect to that contract, the Secretary shall, not later than 7 days after the award of the contract, post a notification that the exception has been applied on the Internet site maintained by the General Services Administration know as FedBizOps.gov (or any successor site). (i) T RAINING D URING FISCAL Y EAR 2008.— (1) IN GENERAL.—The Secretary of Homeland Security shall ensure that each member of the acquiHR 1 PP

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2

1 2

sition workforce in the Department of Homeland Se-

3

curity who participates personally and substantially in

4

the acquisition of textiles on a regular basis receives

5 6

training during fiscal year 2009 on the requirements of

7

this section and the regulations implementing this

8

section.

9

(2) INCLUSION OF INFORMATION IN NEW TRAINING

10 11

PROGRAMS.—The

12

training program for the acquisition work force

13

developed or implemented after the date of the

14

Secretary shall ensure that any

enactment of this Act includes comprehensive infor-

15

mation on the requirements described in paragraph (1).

(j) C ONSISTENCY W ITH INTERNATIONAL A GREEMENTS.—

(1) IN GENERAL.—No provision of this section shall apply to the extent the Secretary of Homeland Security, in consultation with the United States Trade Representative, determines that it is in inconsistent with United States obligations under an international agreement. (2) R EPORT.—The Secretary of Homeland SeHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

curity shall submit a report each year to Congress

3

containing, with respect to the year covered by the

4

report—

5

(A) a list of each provision of this section

6 7

that did not apply during that year pursuant to a

8

determination by the Secretary under paragraph

9

(1); and

10

(B) a list of each contract awarded by the

11

Department of Homeland Security during that 12

year without regard to a provision in this section

13 14

because that provision was made inapplicable

15

pursuant to such a determination. (k) E FFECTIVE D ATE .—This section applies with respect to contracts entered into by the Department of Homeland Security after the date of the enactment of this Act.

TITLE VIII—INTERIOR AND ENVIRONMENT DEPARTMENT OF THE INTERIOR B UREAU OF LAND M ANAGEMENT CONSTRUCTION (INCLUDING TRANSFERS OF FUNDS)

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1

2

2

$325,000,000, for priority road, bridge, and trail repair or

3 4

decommissioning, critical

deferred

maintenance projects, facilities construction and

5 6

renovation, hazardous fuels reduction, and remediation of

7

abandoned mine or well sites: Provided, That funds may be

8

transferred to other appropriate accounts of the Bureau of

9

Land management: Provided further, That the amount set

10

aside from this appropriation pursuant to section 1106 of

11

this Act shall be not more than 5 percent instead of the per12 13

centage specified in such section.

14

U NITED S TATES FISH AND W ILDLIFE S ERVICE

15 CONSTRUCTION (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Construction’’, $300,000,000, for priority road and bridge repair and replacement, and critical deferred maintenance and improvement projects on National Wildlife Refuges, National Fish Hatcheries, and other Service properties: Provided, That funds may be transferred to ‘‘Resource Management’’: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in

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1 2

such section.

3

N ATIONAL P ARK S ERVICE

4

CONSTRUCTION

5 (INCLUDING TRANSFER OF FUNDS)

6 7 8

For an additional amount for ‘‘Construction’’, $1,700,000,000, for projects to address critical deferred

9

maintenance needs within the National Park System, in-

10

cluding roads, bridges and trails, and for other critical in-

11

frastructure projects: Provided, That funds may be trans-

12

ferred to ‘‘Operation of the National Park System’’: Pro13 14 15

vided further, That $200,000,000 of these funds shall be for projects related to the preservation and repair of historical and cultural resources within the National Park System: Provided further, That $15,000,000 of these funds shall be transferred to the ‘‘Historic Preservation Fund’’ for historic preservation projects at historically black colleges and universities as authorized by the Historic Preservation Fund Act of 1996 and the Omnibus Parks and Public Lands Act of 1996, except that any matching requirements otherwise required for such projects are waived: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such HR 1 PP

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1 2

section.

3 4 5

CENTENNIAL CHALLENGE

To carry out provisions of section 814(g) of Public Law 104–333 relating to challenge cost share agreements,

6 7

$100,000,000, for National Park Service Centennial Chal-

8

lenge signature projects and programs: Provided, That not

9

less than 50 percent of the total cost of each project or

10 11

program is derived from non-Federal sources in the form of donated cash, assets, in-kind services, or a pledge of

12 13

donation guaranteed by an irrevocable letter of credit: Pro-

14

vided further, That the amount set aside from this appro-

15

priation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section. U NITED S TATES G EOLOGICAL S URVEY SURVEYS, INVESTIGATIONS, AND RESEARCH

For an additional amount for ‘‘Surveys, Investigations, and Research’’, $200,000,000, for repair and restoration of facilities; equipment replacement and upgrades including stream gages, and seismic and volcano monitoring systems; national map activities; and other critical deferred maintenance and improvement projects: Provided, That the

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1 2

amount set aside from this appropriation pursuant to section

3

1106 of this Act shall be not more than 5 percent instead of

4

the percentage specified in such section.

5

B UREAU OF INDIAN A FFAIRS

6

CONSTRUCTION

7

(INCLUDING TRANSFER OF FUNDS)

8 9 10 11

For an additional amount for ‘‘Construction’’, $500,000,000, for priority repair and replacement of schools, detention centers, roads, bridges, employee hous-

12

ing, and critical deferred maintenance projects: Provided, 13 14 15

That not less than $250,000,000 shall be used for new and replacement schools and detention centers: Provided further, That funds may be transferred to ‘‘Operation of Indian Programs’’: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section. ENVIRONMENTAL PROTECTION AGENCY H AZARDOUS S UBSTANCE S UPERFUND For an additional amount for ‘‘Hazardous Substance Superfund’’, $800,000,000, which shall be used for the Superfund Remedial program: Provided, That amounts available by law from this appropriation for management and HR 1 PP

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1

2

2

administration shall take the place of the set-aside under

3

section 1106 of this Act.

4

LEAKING U NDERGROUND S TORAGE T ANK T RUST FUND

5 6

P ROGRAM For an additional amount for ‘‘Leaking

7

Underground Storage Tank Trust Fund Program’’, to carry

8

out leaking underground storage tank cleanup activities

9

authorized by subtitle I of the Solid Waste Disposal Act,

10

$200,000,000, which shall be used to carry out leaking

11

underground storage tank cleanup activities authorized by 12 13

section 9003(h) of the Solid Waste Disposal Act, except

14

that such funds shall not be subject to the State matching

15

requirements in section 9003(h)(7)(B): Provided, That amounts available by law from this appropriation for management and administration shall take the place of the set-aside under section 1106 of this Act. S TATE AND T RIBAL A SSISTANCE G RANTS For an additional amount for ‘‘State and Tribal Assistance Grants’’, $8,400,000,000, which shall be used as follows: (1) $6,000,000,000 shall be for capitalization grants for the Clean Water State Revolving Funds under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.), except that such funds HR 1 PP

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2

1 2

shall not be subject to the State matching requirements

3

in paragraphs (2) and (3) of section 602(b) of such Act

4

or to the Federal cost share limitations in section 202 of

5 6

such Act: Provided, That the amount set aside from

7

this appropriation pursuant to section 1106 of this Act

8

shall be not more than 2 percent instead of the

9

percentage specified in such section: Provided further,

10

That, notwithstanding the limitation on amounts

11

specified in section 518(c) of the Federal Water 12 13

Pollution Control Act, up to a total of 1.5 percent of

14

such funds may be reserved by the Administrator of

15

the Environmental Protection Agency for grants under section 518(c) of such Act: Provided further, That the requirements of section 513 of such Act shall apply to the construction of treatment works carried out in whole or in part with assistance made available under this heading by a Clean Water State Revolving Fund under title VI of such Act, or with assistance made available under section 205(m) of such Act, or both: Provided further, That, notwithstanding the requirements of section 603(d) of such Act, each State shall use 50 percent of the amount of the capitalization

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2

1 2

grant received by the State under title VI of such Act

3

to provide assistance, in the form of additional

4

subsidization, including forgiveness of principal,

5 6

negative interest loans, and grants, to municipalities

7

(as defined in section 502 of such Act) for projects

8

that are included on the State’s priority list established

9

under section 603(g) of such Act, of which 80 percent

10

shall be for projects to benefit municipalities that meet

11

affordability criteria as determined by the Governor of 12 13

the State and 20 percent shall be for projects to

14

address water-efficiency goals,

address

15

energy-efficiency goals, mitigate stormwater runoff, or encourage environmentally sensitive project planning, design, and construction, to the extent that there are sufficient project applications eligible for such assistance. (2) $2,000,000,000 shall be for capitalization grants for the Drinking Water State Revolving Funds under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12), except that such funds shall not be subject to the State matching requirements of section 1452(e) of such Act: Provided, That the amount set aside from this

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2

1 2

appropriation pursuant to section 1106 of this Act shall

3

be not more than 2 percent instead of the percentage

4

specified in such section: Provided further, That section

5 6

1452(k) of the Safe Drinking Water Act shall not apply

7

to such funds: Provided further, That the requirements of

8

section 1450(e) of such Act (42 U.S.C. 300j–9(e)) shall

9

apply to the construction carried out in whole or part

10

with assistance made available under this heading by a

11

Drinking Water State Revolving fund under section 1452 12 13

of such Act: Provided further, That, notwithstanding the

14

requirements of section 1452(a)(2) of such Act, each

15

State shall use 50 percent of the amount of the capitalization grant received by the State under section 1452 of such Act to provide assistance, in the form

of

additional

of

subsidization,

including

forgiveness

principal, negative interest loans, and grants, to municipalities (as defined in section 1401 of such Act) for projects that are included on the State’s priority list established under section 1452(b)(3) of such Act. (3) $300,000,000 shall be for grants under title VII, Subtitle G of the Energy Policy Act of 2005: Provided, That the amount set aside from this ap-

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2

1 2

propriation pursuant to section 1106 of this Act shall

3

be not more than 3 percent instead of the percentage

4

specified in such section.

5

(4) $100,000,000 shall be to carry out section

6 7

104(k) of the Comprehensive Environmental Response,

8

Compensation, and Liability Act of 1980: Provided,

9

That the amount set aside from this appropriation

10

pursuant to section 1106 of this Act shall be not more

11

than 3 percent instead of the percentage specified in 12 13

such section. DEPARTMENT OF AGRICULTURE

14 15

FOREST S ERVICE CAPITAL IMPROVEMENT AND MAINTENANCE (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Capital Improvement and Maintenance’’, $650,000,000, for reconstruction, capital improvement, decommissioning, and maintenance of forest roads, bridges and trails; alternative energy technologies, energy efficiency enhancements and deferred maintenance at Federal facilities; and for remediation of abandoned mine sites, removal of fish passage barriers, and other critical habitat, forest improvement and water

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2

1 2

shed enhancement projects on Federal lands and waters:

3

Provided, That funds may be transferred to ‘‘National Forest

4

System’’: Provided further, That the amount set aside from

5 6

this appropriation pursuant to section 1106 of this Act shall be

7

not more than 5 percent instead of the percentage specified in

8

such section.

9

WILDLAND FIRE MANAGEMENT

10 11

(INCLUDING TRANSFERS OF FUNDS)

For an additional amount for ‘‘Wildland Fire Man-

12 13

agement’’, $850,000,000, of which $300,000,000 is for

14

hazardous fuels reduction, forest health, wood to energy

15

grants and rehabilitation and restoration activities on Federal lands, and of which $550,000,000 is for State fire assistance hazardous fuels projects, volunteer fire assistance, cooperative forest health projects, city forest enhancements, and wood to energy grants on State and private lands: Provided, That amounts in this paragraph may be transferred to ‘‘State and Private Forestry’’ and ‘‘National Forest System’’: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

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2

1 2

DEPARTMENT OF HEALTH AND HUMAN

3

SERVICES INDIAN H EALTH S ERVICE

4 5

INDIAN HEALTH FACILITIES

For an additional amount for ‘‘Indian Health Facili-

6 7

ties’’, $550,000,000, for priority health care facilities con-

8

struction projects and deferred maintenance, and the pur-

9

chase of equipment and related services, including but not

10 11

limited to health information technology: Provided, That notwithstanding any other provision of law, the amounts

12 13

available under this paragraph shall be allocated at the

14

discretion of the Director of the Indian Health Service:

15

Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section. OTHER RELATED AGENCIES S MITHSONIAN INSTITUTION FACILITIES CAPITAL (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Facilities Capital’’, $150,000,000, for deferred maintenance projects, and for repair, revitalization, and alteration of facilities owned or occupied by the Smithsonian Institution, by contract or HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

otherwise, as authorized by section 2 of the Act of August 22,

3

1949 (63 Stat. 623): Provided, That funds may be transferred

4

to ‘‘Salaries and Expenses’’: Provided further, That the

5 6

amount set aside from this appropriation pursuant to section

7

1106 of this Act shall be not more than 5 percent instead of

8

the percentage specified in such section.

9 10

N ATIONAL FOUNDATION ON THE A RTS AND THE H UMANITIES N ATIONAL E NDOWMENT FOR THE A RTS

11 GRANTS AND ADMINISTRATION

12 13

For an additional amount for ‘‘Grants and Adminis-

14

tration’’, $50,000,000, to be distributed in direct grants to

15

fund arts projects and activities which preserve jobs in the non-profit arts sector threatened by declines in philanthropic and other support during the current economic downturn: Provided, That 40 percent of such funds shall be distributed to State arts agencies and regional arts organizations in a manner similar to the agency’s current practice and 60 percent of such funds shall be for competitively selected arts projects and activities according to sections 2 and 5(c) of the National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): Provided further, That matching requirements under section 5(e) of such Act shall be waived: Provided further, That the amount set aside HR 1 PP

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2

1 2

from this appropriation pursu ant to section 1106 of this Act

3

shall be not more than 5 percent instead of the percentage

4

specified in such section.

5

7

TITLE IX—LABOR, HEALTH AND HUMAN SERVICES, AND EDU-

8

CATION

6

Subtitle A—Labor

9 10

DEPARTMENT OF LABOR

11

E MPLOYMENT AND T RAINING A DMINISTRATION

12 TRAINING AND EMPLOYMENT SERVICES

13 14 15

For an additional amount for ‘‘Training and Employment Services’’ for activities under the Workforce Investment Act of 1998 (‘‘WIA’’), $4,000,000,000, which shall be available for obligation on the date of enactment of this Act, as follows: (1) $500,000,000 for grants to the States for adult employment and training activities. (2) $1,200,000,000 for grants to the States for youth activities, including summer jobs for youth: Provided, That the work readiness performance indicator described in section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of performance used to assess the effectiveness of summer jobs for youth HR 1 PP

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2

1 2

provided with such funds: Provided further, That with

3

respect to the youth activities provided with such

4

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

5 6

by substituting ‘‘age 24’’ for ‘‘age 21’’: Provided

7

further, That no portion of the additional funds

8

provided herein shall be reserved to carry out section

9

127(b)(1)(A) of the WIA: Provided further, That for

10

purposes of section 127(b)(1)(C)(iv) of the WIA, such

11

funds shall be allotted as if the total amount of funding 12 13 14

available for youth activities in the fiscal year does not exceed $1,000,000,000.

15

(3) $1,000,000,000 for grants to the States for dislocated worker employment and training activities. (4) $500,000,000 for the dislocated workers assistance national reserve to remain available for Federal obligation through June 30, 2010: Provided, That such funds shall be made available for grants only to eligible entities that serve areas of high unemployment or high poverty and only for the purposes described in subsection 173(a)(1) of the WIA: Provided further, That the Secretary of Labor shall ensure that applicants for such funds demonstrate how

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1

2

2

income support, child care, and other supportive

3

services necessary for an individual’s participation in

4

job training will be provided.

5

(5) $50,000,000 for YouthBuild activities, which

6 7

shall remain available for Federal obligation through

8

June 30, 2010.

9 10

(6) $750,000,000 for a program of competitive grants for worker training and placement in high

11

growth and emerging industry sectors (including 12 13

projects funded under section 6002 of division B of

14

this Act): Provided, That $500,000,000 shall be for

15

research, labor exchange and job training projects that prepare workers for careers in the energy efficiency and renewable energy industries specified in section 171(e)(1)(B)(ii) of the WIA (as amended by the Green Jobs Act of 2007): Provided further, That in awarding grants from those funds not designated in the preceding proviso, the Secretary of Labor shall give priority to projects that prepare workers for careers in the health care sector: Provided further, That the provisions of section 1103 of this Act shall not apply to this appropriation:

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1 2

Provided, That the additional funds provided to States under

3

this heading are not subject to section 191(a) of the WIA:

4

Provided further, That notwithstanding section 1106 of this

5 6

Act, there shall be no amount set aside from

the

7

appropriations made in subsections (1) through (3) under this

8

heading and the amount set aside for sub

9

sections (4) through (6) shall be up to 1 percent instead of

10

the percentage specified in such section.

11 COMMUNITY SERVICE EMPLOYMENT FOR OLDER

12 AMERICANS

13 14 15

For an additional amount for ‘‘Community Service Employment for Older Americans’’ to carry out title V of the Older Americans Act of 1965, $120,000,000, which shall be available for obligation on the date of enactment of this Act: Provided, That funds shall be allotted within 30 days of such enactment to current grantees in proportion to their allotment in program year 2008. STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE OPERATIONS

For an additional amount for ‘‘State Unemployment Insurance and Employment Service Operations’’ for grants to the States in accordance with section 6 of the Wagner-Peyser Act, $500,000,000, which may be expended HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

from the Employment Security Administration Account in

3

the Unemployment Trust Fund, and which shall be

4

available for obligation on the date of enactment of this

5 6

Act: Provided, That such funds shall remain available to the

7

States through September 30, 2010: Provided further, That,

8

with respect to such funds, section 6(b)(1) of such Act shall

9

be applied by substituting ‘‘one-third’’ for ‘‘two- thirds’’ in

10

subparagraph (A), with the remaining one-third of the sums

11

to be allotted in accordance with section 12 13

132(b)(2)(B)(ii)(III) of the Workforce Investment Act of

14

1998: Provided further, That not less than $250,000,000 of

15

the amount provided under this heading shall be used by States for reemployment services for unemployment insurance claimants (including the integrated Employment Service and Unemployment Insurance information technology required to identify and serve the needs of such claimants): Provided further, That the Secretary of Labor shall establish planning and reporting procedures necessary to provide oversight of funds used for reemployment services. D EPARTMENTAL M ANAGEMENT SALARIES AND EXPENSES (INCLUDING TRANSFER OF FUNDS) HR 1 PP

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2

1 2

For an additional amount for ‘‘Departmental Man-

3

agement’’, $80,000,000, for the enforcement of worker

4

protection laws and regulations, oversight, and coordination

5 6

activities related to the infrastructure and unemployment

7

insurance investments in this Act: Provided, That the

8

Secretary of Labor may transfer such sums as necessary to

9

‘‘Employment and Standards Administration’’,

10

‘‘Occupational Safety and Health Administration’’, and

11

‘‘Employment and Training Administration—Program 12 13

Administration’’ for enforcement, oversight, and coordina

14

tion activities: Provided further, That the provisions of sec-

15

tion 1106 of this Act shall not apply to this appropriation. OFFICE OF JOB CORPS

For an additional amount for ‘‘Office of Job Corps’’, $300,000,000, for construction, rehabilitation and acquisition of Job Corps Centers, which shall be available upon the date of enactment of this Act and remain available for obligation through June 30, 2010: Provided, That section 1552(a) of title 31, United States Code shall not apply to up to 30 percent of such funds, if such funds are used for a multi-year lease agreement that will result in construction activities that can commence within 120 days of enactment of this Act: Provided further, That notwithstanding section HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

3324(a) of title 31, United States Code, the funds referred

3

to in the preceding proviso may be used for advance,

4

progress, and other payments: Provided further, That the

5 6

Secretary of Labor may transfer up to 15 percent of such

7

funds to meet the operational needs of such centers, which

8

may include the provision of additional training for careers

9

in the energy efficiency and renewable energy industries:

10

Provided further, That priority should be given to activities

11

that can commence promptly following enactment and to 12 13

those projects that will create the greatest impact on the

14

energy efficiency of Job Corps facilities: Provided further,

15

That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than September 30, 2009 and quarterly thereafter as long as funding provided under this heading is available for obligation or expenditure. GENERAL PROVISIONS, THIS SUBTITLE SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL MARINE INDUSTRY.

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2

1

(1) by striking ‘‘, repair, or dismantle’’; and

2 3 4

(2) by striking the semicolon and inserting ‘‘, or individuals employed to repair any recreational vessel,

5

or to dismantle any part of a recreational vessel in 6 7

connection with the repair of such vessel;’’.

8

Subtitle B—Health and Human

9

Services

10

DEPARTMENT OF HEALTH AND HUMAN SERVICES

11

H EALTH R ESOURCES AND S ERVICES For an additional amount 12 13

for ‘‘Health Resources and Services’’, $2,188,000,000 which shall be used as follows:

14 15

(1) $500,000,000, of which $250,000,000 shall not be available until October 1, 2009, shall be for grants to health centers authorized under section 330 of the Public Health Service Act (‘‘PHS Act’’). (2) $1,000,000,000 shall be available for renovation and repair of health centers authorized under section 330 of the PHS Act and for the acquisition by such centers of health information technology systems: Provided, That the timeframe for the award of grants pursuant to section 1103(b) of this Act shall not be later than 180 days after the date of enactment of this

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2

1 2

Act instead of the timeframe specified in such section.

3 4

(3) $88,000,000 shall be for fit-out and other costs related to moving into a facility to be secured through a

5 6

competitive lease procurement to replace or renovate a

7

headquarters building for Public Health Service agencies

8

and other components of the Department of Health and

9

Human Services.

10

(4) $600,000,000, of which $300,000,000 shall

11

not be available until October 1, 2009, shall be for the 12 13

training of nurses and primary care physicians and

14

dentists as authorized under titles VII and VIII of the

15

PHS Act, for the provision of health care personnel under the National Health Service Corps pro gram authorized under title III of the PHS Act, and for the patient navigator program authorized under title III of the PHS Act. C ENTERS FOR D ISEASE C ONTROL AND P REVENTION DISEASE CONTROL, RESEARCH , AND TRAINING

For an additional

amount for ‘‘Disease Control, Research, and Training’’ for equipment, construction, and renovation of facilities, including necessary repairs and improvements to leased laboratories, $462,000,000: Provided, That notwithstanding

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2

1 2

any other provision of law, the Centers for Disease Control

3

and Prevention may award a single contract or related

4

contracts for development and construction of facilities that

5 6

collectively include the full scope of the project: Provided

7

further, That the solicitation and contract shall contain the

8

clause ‘‘availability of funds’’ found at 48 CFR 52.232–18:

9

Provided further, That in accordance with applicable

10

authorities, policies, and procedures, the Centers for

11

Disease Control and Prevention shall acquire real property, 12 13

and make any necessary improvements thereon, to relocate

14

and consolidate property and facilities of the National

15

Institute for Occupational Safety and Health. N ATIONAL INSTITUTES OF H EALTH NATIONAL CENTER FOR RESEARCH RESOURCES

For an additional amount for ‘‘National Center for Research Resources’’, $1,500,000,000 for grants or contracts under section 481A of the Public Health Service Act to renovate or repair existing non-Federal research facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1), (3), and (4) of section 481A(e), and section 481B of such Act shall not apply to the use of such funds: Provided further, That the references to ‘‘20 years’’ in subsections (c)(1)(B)(i) and (f) of section 481A of such Act are deemed HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to be references to ‘‘10 years’’ for purposes of using such

3

funds: Provided further, That the National Center for

4

Research Resources may also use such funds to provide,

5 6

under the authority of section 301 and title IV of such Act,

7

shared instrumentation and other capital research

8

equipment to recipients of grants and contracts under

9

section 481A of such Act and other appropriate entities:

10

Provided further, That the Director of the Center shall

11

provide to the Committees on Appropriations of the House 12 13

of Representatives and the Senate an annual report

14

indicating the number of institutions receiving awards of a

15

grant or contract under section 481A of such Act, the proposed use of the funding, the average award size, a list of grant or contract recipients, and the amount of each award: Provided further, That the Center, in obligating such funds, shall require that each entity that applies for a grant or contract under section 481A for any project shall include in its application an assurance described in section 1621(b)(1)(I) of the Public Health Service Act: Provided further, That the Center shall give priority in the award of grants and contracts under section 481A of such Act to those applications that are expected to generate de-

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1

2

2

monstrable energy-saving or beneficial environmental ef-

3

fects: Provided further, That the provisions of section 1103

4

of this Act shall not apply to the peer-reviewed grants

5 6

awarded under this heading. OFFICE OF THE DIRECTOR

7

(INCLUDING TRANSFER OF FUNDS)

8 9 10 11

For an additional amount for ‘‘Office of the Director’’, $1,500,000,000, of which $750,000,000 shall not be available until October 1, 2009: Provided, That such funds

12 13

shall be transferred to the Institutes and Centers of the

14

National Institutes of Health and to the Common Fund

15

established under section 402A(c)(1) of the Public Health Service Act in proportion to the appropriations otherwise made to such Institutes, Centers, and Common Fund for fiscal year 2009: Provided further, That these funds shall be used to support additional scientific research and shall be merged with and be available for the same purposes as the appropriation or fund to which transferred: Provided further, That this transfer authority is in addition to any other transfer authority available to the National Institutes of Health: Provided further, That none of these funds may be transferred to ‘‘National Institutes of Health—Buildings and Facilities’’, the Center for Scientific Review, the Center HR 1 PP

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2

1 2

for Information Technology, the Clinical Center, the Global

3

Fund for HIV/AIDS, Tuberculosis and Malaria, or the

4

Office of the Director (except for the transfer to the

5 6

Common Fund): Provided further, That the provisions of

7

section 1103 of this Act shall not apply to the

8

peer-reviewed grants awarded under this heading.

9 10 11

BUILDINGS AND FACILITIES

For an additional amount for ‘‘Buildings and Facilities’’, $500,000,000, to fund high priority repair and im-

12 13

provement projects for National Institutes of Health facili-

14

ties on the Bethesda, Maryland campus and other agency

15

locations. A GENCY FOR H EALTHCARE R ESEARCH AND Q UALITY 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 Secu rity 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,

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1

2

2

$400,000,000 shall be transferred to the Office of the Di-

3

rector of the National Institutes of Health (‘‘Office of the

4

Director’’) to conduct or support comparative effectiveness

5 6

research: Provided further, That funds transferred to the

7

Office of the Director may be transferred to the national

8

research institutes and national centers of the National

9

Institutes of Health and to the Common Fund established

10

under section 402A(c)(1) of the Public Health Service Act:

11

Provided further, That this transfer authority is in addition 12 13

to any other transfer authority available to the National

14

Institutes of Health: Provided further, That the provisions of

15

section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this paragraph: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 1 percent instead of the percentage specified in such section. In addition, $400,000,000 shall be available for comparative effectiveness research to be allocated at the discretion of the Secretary of Health and Human Services (‘‘Secretary’’): Provided, That the funding appropriated in this paragraph shall be used to accelerate the development

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1

2

2

and dissemination of research assessing the comparative

3

effectiveness of health care treatments and strategies, in-

4

cluding through efforts that: (1) conduct, support, or syn-

5 6

thesize research that compares the clinical outcomes, ef-

7

fectiveness, and appropriateness of items, services, and

8

procedures that are used to prevent, diagnose, or treat dis-

9

eases, disorders, and other health conditions; and (2) en-

10

courage the development and use of clinical registries, clin-

11

ical data networks, and other forms of electronic health 12 13

data that can be used to generate or obtain outcomes data:

14

Provided further, That the Secretary shall enter into a

15

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

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1 2

9201 of this Act and any recommendations included in the

3

Institute of Medicine report pursuant to the preceding

4

proviso in designating activities to receive funds provided

5 6

in this paragraph and may make grants and contracts with

7

appropriate entities, which may include agencies within the

8

Department of Health and Human Services and other

9

governmental agencies, as well as private sector entities,

10

that have demonstrated experience and capacity to achieve

11

the goals of comparative effectiveness research: Provided 12 13

further, That the Secretary shall publish information on

14

grants and contracts awarded with the funds provided under

15

this heading within a reasonable time of the obligation of funds for such grants and contracts and shall disseminate research findings from such grants and contracts to clinicians, patients, and the general public, as appropriate: Provided further, That, to the extent feasible, the Secretary shall ensure that the recipients of the funds provided by this paragraph offer an opportunity for public comment on the research: Provided further, That the provisions of section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this paragraph: Provided further, That the Secretary shall provide the Committees on Appropriations

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1 2

of the House of Representatives and the Senate, the

3

Committee on Energy and Commerce and the Committee on

4

Ways and Means of the House of Representatives, and the

5 6

Committee on Health, Education, Labor, and Pensions and

7

the Committee on Fi nance of the Senate with an annual

8

report on the research conducted or supported through the

9

funds provided under this heading: Provided further, That

10

the Secretary, jointly with the Directors of the Agency for

11

Healthcare Research and Quality and the National Institutes 12 13

of Health, shall provide the Committees on Appropriations

14

of the House of Representatives and the Senate a fiscal

15

year 2009 operating plan for the funds appropriated under this heading prior to making any Federal obligations of such funds in fiscal year 2009, but not later than 90 days after the date of enactment of this Act, and a fiscal year 2010 operating plan for such funds prior to making any Federal obligations of such funds in fiscal year 2010, but not later than November 1, 2009, that detail the type of research being conducted or supported, including the priority conditions addressed; and specify the allocation of resources within the Department of Health and Human Services: Provided further, That the Secretary jointly with

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2

2

the Directors of the Agency for Healthcare Research and

3

Quality and the National Institutes of Health, shall provide

4

to the Committees on Appropriations of the House of

5 6

Representatives and the Senate a report on the actual

7

obligations, expenditures, and unobligated balances for each

8

activity funded under this heading not later than November

9

1, 2009, and every 6 months thereafter as long as funding

10

provided under this heading is available for obligation or

11

expenditure. 12 13

A DMINISTRATION FOR C HILDREN AND FAMILIES

14

LOW -INCOME HOME ENERGY ASSISTANCE

For an additional

15

amount for ‘‘Low-Income Home Energy Assistance’’ for making payments under section 2602(b) and section 2602(d) of the Low-Income Home Energy Assistance Act of 1981, $1,000,000,000, which shall become available on October 1, 2009: Provided, That the provisions of section 1106 of this Act shall not apply to this appropriation. PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT BLOCK GRANT

For an additional amount for ‘‘Payments to States for the Child Care and Development Block Grant’’, $2,000,000,000, of which $1,000,000,000 shall become available on October 1, 2009, which shall be used to supHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

plement, not supplant State general revenue funds for child

3

care assistance for low-income families: Provided, That the

4

provisions of section 1106 of this Act shall not apply to this

5 6

appropriation. CHILDREN AND FAMILIES SERVICES PROGRAMS

7 8

For an additional amount for ‘‘Children and Families

9

Services Programs’’, $3,200,000,000, which shall be used as

10

follows:

11 12

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

13

the Head Start Act, of which $500,000,000 shall become

14

available on October 1, 2009.

15

(2) $1,100,000,000 for expansion of Early Head Start programs, as described in section 645A of the Head Start Act, of which $550,000,000 shall become available on October 1, 2009: Provided, That of the funds provided in this sentence, up to 10 percent shall be available for the provision of training and technical assistance to such programs consistent with section 645A(g)(2) of such Act, and up to 3 percent shall be available for monitoring the operation of such programs consistent with section 641A of such Act: Provided further, That the preceding proviso shall apply to this

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appropriation in lieu of the provisions of section 1106

3

of this Act: Provided further, That the provisions of

4

section 1103 of this Act shall not apply to this

5 6

appropriation.

7

(3) $1,000,000,000 for carrying out activities under

8

sections 674 through 679 of the Community Services

9

Block Grant Act, of which $500,000,000 shall become

10

available on October 1, 2009, and of which no part shall

11

be subject to paragraphs (2) and 12 13

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

14

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

15

percent of the funds made available to a State from this additional amount shall be distributed to eligible entities as defined in section 673(1) of such Act: Provided further, That for services furnished under such Act during fiscal years 2009 and 2010, States may apply the last sentence of section 673(2) of such Act by substituting ‘‘200 percent’’ for ‘‘125 percent’’: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation. (4) $100,000,000 for carrying out activities under section 1110 of the Social Security Act, of which

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1 2

$50,000,000 shall become available on October 1,

3

2009: Provided, That the Secretary of Health and

4

Human Services shall distribute such amount under the

5 6

Compassion Capital Fund to eligible faith- based and

7

community organizations: Provided further, That the

8

provisions of section 1106 of this Act shall not apply

9

to this appropriation.

10

A DMINISTRATION ON A GING

11 AGING SERVICES PROGRAMS

12 13

For an additional amount for ‘‘Aging Services Pro-

14

grams’’ under section 311, and subparts 1 and 2 of part C,

15

of title III of the Older Americans Act of 1965, $200,000,000, of which $100,000,000 shall become avail able on October 1, 2009: Provided, That the provisions of section 1106 of this Act shall not apply to this appropriation. O FFICE OF THE S ECRETARY OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Office of the National Coordinator for Health Information Technology’’ to carry out section 9202 of this Act, $2,000,000,000, to remain HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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2

2

available until expended: Provided, That of such amount,

3

the Secretary of Health and Human Services shall transfer

4

$20,000,000 to the Director of the National Institute of

5 6

Standards and Technology in the Department of Commerce

7

for continued work on advancing health care information

8

enterprise integration through activities such as technical

9

standards analysis and establishment of conformance testing

10

infrastructure, so long as such activities are coordinated

11

with the Office of the National Coordinator for Health 12 13

Information Technology: Provided further, That the

14

provisions of section 1103 of this Act shall not apply to this

15

appropriation: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 0.25 percent instead of the percentage specified in such section: Provided further, That funds available under this heading shall become available for obligation only upon submission of an annual operating plan by the Secretary to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That the fiscal year 2009 operating plan shall be provided not later than 90 days after enactment of this Act and that subsequent annual operating plans shall be provided not

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1 2

later than November 1 of each year: Provided further, That

3

these operating plans shall describe how expenditures are

4

aligned with the specific objectives, milestones, and metrics

5 6

of the Federal Health Information Technology Strategic

7

Plan, including any subsequent updates to the Plan; the

8

allocation of resources within the Department of Health and

9

Human Services and other Federal agencies; and the

10

identification of programs and activities that are supported:

11

Provided further, That the Secretary shall provide to the 12 13

Committees on Appropriations of the House of

14

Representatives and the Senate a report on the actual

15

obligations, expenditures, and unobligated balances for each major set of activities not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure: Provided further, That the Comptroller General of the United States shall review on an annual basis the expenditures from funds provided under this heading to determine if such funds are used in a manner consistent with the purpose and requirements under this heading. PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND HR 1 PP

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1

(INCLUDING TRANSFER OF FUNDS)

2 3 4 5

For an additional amount for ‘‘Public Health and Social Services Emergency Fund’’ to support advanced research and development pursuant to section 319L of the Public

6 7

Health Service Act, $430,000,000: Provided, That the

8

provisions of section 1103 of this Act shall not apply to this

9

appropriation.

10 11

For an additional amount for ‘‘Public Health and Social Services Emergency Fund’’ to prepare for and respond to an

12 13

influenza pandemic, including the development and

14

purchase of vaccine, antivirals, necessary medical supplies,

15

diagnostics, and other surveillance tools, $420,000,000: Provided, That the provisions of section 1103 of this Act shall not apply to this appropriation: Provided further, That products purchased with these funds may, at the discretion of the Secretary of Health and Human Services (‘‘Secretary’’), be deposited in the Strategic National Stockpile: Provided further, That notwithstanding section 496(b) of the Public Health Service Act, funds may be used for the construction or renovation of privately owned facilities for the production of pandemic influenza vaccine and other biologics, where the Secretary finds such a contract necessary to secure sufficient supplies of such HR 1 PP

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1 2

vaccines or biologics: Provided further, That funds

3

appropriated in this paragraph may be transferred to other

4

appropriation accounts of the Department of Health and

5 6

Human Services, as determined by the Secretary to be

7

appropriate, to be used for the purposed specified in this

8

sentence.

9 10

For an additional amount for ‘‘Public Health and Social Services Emergency Fund’’ to improve information

11

technology security at the Department of Health and 12 13

Human Services, $50,000,000: Provided, That the Secretary

14

shall prepare and submit a report by not later than

15

November 1, 2009, and by not later than 15 days after the end of each month thereafter, updating the status of actions taken and funds obligated in this and previous appropriations Acts for pandemic influenza preparedness and response activities, biomedical advanced research and development activities, Project BioShield, and Cyber Security. PREVENTION AND WELLNESS FUND (INCLUDING TRANSFER OF FUNDS)

For necessary expenses for a ‘‘Prevention and Wellness Fund’’ to be administered through the Depart ment of Health and Human Services Office of the Secretary, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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2

2

$3,000,000,000: Provided, That the provisions of section

3

1103 of this Act shall not apply to this appropriation:

4

Provided further, That of the amount appropriated under

5 6

this heading not less than $2,350,000,000 shall be

7

transferred to the Centers for Disease Control and Pre-

8

vention as follows:

9 10

(1) Not less than $954,000,000 shall be used as an additional amount to carry out the immunization program

11

authorized by section 317(a), (j), and (k)(1) of the Public 12 13

Health Service Act (‘‘section 317 program’’), of

14 15

immuniz a t io n

which $649,900,000 shall be

available on October 1, 2009. (2) Not less than $296,000,000 shall be used as an additional amount to carry out Part A of title XIX of the Public Health Service Act, of which $148,000,000 shall be available on October 1, 2009. (3) Not less than $545,000,000 shall be used as an additional amount to carry out chronic disease, health promotion, and genomics programs, as jointly determined by the Secretary of Health and Human Services (‘‘Secretary’’) and the Director of the Centers for Disease Control and Prevention (‘‘Director’’).

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1

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

2 3 4

an additional amount to carry out domestic HIV/ AIDS, viral hepatitis, sexually-transmitted diseases,

5 6 7

and tuberculosis prevention programs, as jointly determined by the Secretary and the Director. (5) Not less than $60,000,000 shall be used as an

8 9 10

additional amount to carry out environmental health programs, as jointly determined by the Secretary and

11

the Director. 12

(6) Not less than $50,000,000 shall be used as an

13 14

additional amount to carry out injury prevention and

15

control programs, as jointly determined by the Secretary and the Director. (7) Not less than $30,000,000 shall be used as an additional amount for public health workforce development activities, as jointly determined by the Secretary and the Director. (8) Not less than $40,000,000 shall be used as an additional amount for the National Institute for Occupational Safety and Health to carry out research activities within the National Occupational Research Agenda.

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

3

additional amount for the National Center for Health

4

Statistics:

5 6

Provided further, That of the amount appropriated under

7

this heading not less than $150,000,000 shall be available

8

for an additional amount to carry out activities to implement

9

a national action plan to prevent healthcare-associated

10

infections, as determined by the Secretary, of which not

11

less $50,000,000 shall be provided to States to implement 12 13

healthcare-associated infection reduction strategies:

14

Provided further, That of the amount appropriated under

15

this heading $500,000,000 shall be used to carry out evidence-based clinical and community-based prevention and wellness strategies and public health workforce development activities authorized by the Public Health Service Act, as determined by the Secretary, that deliver specific, measurable health outcomes that address chronic and infectious disease rates and health disparities, which shall include evidence-based interventions in obesity, diabetes, heart disease, cancer, tobacco cessation and smoking prevention, and oral health, and which may be used for the Healthy Communities program administered by the Centers

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for Disease Control and Prevention and other existing

3

community-based programs administered by the Department

4

of Health and Human Services: Provided further, That

5 6

funds appropriated in the preceding proviso may be

7

transferred to other appropriation accounts of the Depart-

8

ment of Health and Human Services, as determined by the

9

Secretary to be appropriate: Provided further, That the

10

Secretary shall, directly or through contracts with public or

11

private entities, provide for annual evaluations of programs 12 13

carried out with funds provided under this heading in order

14

to determine the quality and effectiveness of the programs:

15

Provided further, That the Secretary shall, not later than 1 year after the date of enactment of this Act, submit to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Health, Education, Labor, and Pensions of the Senate, a report: (1) summarizing the annual evaluations of programs from the preceding proviso; and (2) making recommendations concerning future spending on prevention and wellness activities, including any recommendations made by the United States Preventive

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Services Task Force in the area of clinical preventive serv-

3

ices and the Task Force on Community Preventive Services

4

in the area of community preventive services: Provided

5 6

further, That the Secretary shall enter into a contract with

7

the Institute of Medicine, for which no more than

8

$1,500,000 shall be made available from funds provided in

9

this paragraph, to produce and submit a report to the

10

Congress and the Secretary by no later than 1 year after the

11

date of enactment of this Act that includes rec 12 13

ommendations on the national priorities for clinical and

14

community-based prevention and wellness activities that

15

will have a positive impact in preventing illness or reducing healthcare costs and that considers input from stakeholders: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a fiscal year 2009 operating plan for the Prevention and Wellness Fund prior to making any Federal obligations of funds provided under this heading in fiscal year 2009 (excluding funds to carry out the section 317 immunization program), but not later than 90 days after the date of enactment of this Act, and a fiscal year 2010 operating plan for the Prevention and Wellness

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Fund prior to making any Federal obligations of funds

3

provided under this heading in fiscal year 2010 (excluding

4

funds to carry out the section 317 immunization program),

5 6

but not later than November 1, 2009, that indicate the

7

prevention priorities to be addressed; provide measurable

8

goals for each prevention priority; detail the allocation of

9

resources within the Department of Health and Human

10

Services; and identify which programs or activities are

11

supported, including descriptions of any new programs or 12 13

activities: Provided further, That the Secretary shall provide

14

to the Committees on Appropriations of the House of

15

Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure. GENERAL PROVISIONS, THIS SUBTITLE SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM PARATIVE EFFECTIVENESS RESEARCH.

(a) E STABLISHMENT.—There is hereby established a Federal Coordinating Council for Comparative Effectiveness Research (in this section referred to as the ‘‘Council’’). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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(b) P URPOSE; D UTIES.—The Council shall—

4

(1) assist the offices and agencies of the Federal

5

Government, including the Departments of Health and 6 7

Human Services, Veterans Affairs, and Defense, and

8

other Federal departments or agencies, to coordinate

9

the conduct or support of comparative effectiveness

10

and related health services research; and

11

(2) advise the President and Congress on—

12

(A) strategies with respect to the infrastructure

13 14

needs of comparative effectiveness research within

15

the Federal Government; (B) appropriate organizational expenditures for comparative effectiveness research by relevant Federal departments and agencies; and (C) opportunities to assure optimum coordination of comparative effectiveness and related health services research conducted or supported by relevant Federal departments and agencies, with the goal of reducing duplicative efforts and encouraging coordinated and complementary use of resources.

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(c) M EMBERSHIP.—

3 4

(1) N UMBER AND APPOINTMENT.—The Council shall be composed of not more than 15 members, all of

5

whom are senior Federal officers or employees with 6 7

responsibility for health-related programs, appointed by

8

the President, acting through the Secretary of Health

9

and Human Services (in this section referred to as the

10 11

‘‘Secretary’’). Members shall first be appointed to the Council not later than 30 days after the date of the

12 13

enactment of this Act. (2) M EMBERS.—

14

(A) IN GENERAL.—The members of the

15

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.

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(v) The Food and Drug Administration.

3

(vi) The Veterans Health Administration

4

within the Department of Veterans Affairs.

5

(vii) The office within the Department of

6 7

Defense responsible for management of the

8

Department of

9

Health Care System.

10

Defense

M ilitary

(B) Q UALIFICATIONS .—At least half of the

11

members of the Council shall be physicians or other 12

experts with clinical expertise.

13

(3) C HAIRMAN ; VICE CHAIRMAN .—The Secretary

14 15

shall serve as Chairman of the Council and shall designate a member to serve as Vice Chairman. (d) R EPORTS.— (1) INITIAL REPORT.—Not later than June 30, 2009, the Council shall submit to the President and the Congress a report containing information describing Federal activities on comparative effectiveness research and recommendations for additional investments in such research conducted or supported from funds made available for allotment by the Secretary for comparative effectiveness research in this Act. HR 1 PP

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(2) A NNUAL REPORT.—The Council shall submit to

3

the President and Congress an annual report regarding

4

its activities and recommendations concerning the

5 6

infrastructure needs, appropriate organizational

7

expenditures and opportunities for better coordination

8

of comparative effectiveness research by relevant

9

Federal departments and agencies.

10

(e) S TAFFING ; S UPPORT.—From funds made available

11

for allotment by the Secretary for comparative effectiveness 12 13

research in this Act, the Secretary shall make available not

14

more than 1 percent to the Council for staff and

15

administrative support. SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH NOLOGY.

(a) IN G ENERAL.—The Secretary of Health and Human Services shall invest in the infrastructure nec essary to allow for and promote the electronic exchange and use of health information for each individual in the United States consistent with the goals outlined in the Strategic Plan developed by the Office of the National Coordinator for Health Information Technology. Such investment shall include investment in at least the following: (1) Health information technology architecture HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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that will support the nationwide electronic exchange

3

and use of health information in a secure, private, and

4

accurate manner, including connecting health

5 6

information exchanges, and which may include up-

7

dating and implementing the infrastructure necessary

8

within different agencies of the Department of Health

9

and Human Services to support the electronic use and

10

exchange of health information.

11

(2) Integration of health information technology, 12 13

including electronic medical records, into the initial

14

and ongoing training of health professionals and others

15

in the healthcare industry who would be instrumental to improving the quality of healthcare through the smooth and accurate electronic use and exchange of health information as determined by the Secretary. (3) Training on and dissemination of information on best practices to integrate health information technology, including electronic records, into a provider’s delivery of care, including community health centers receiving assistance under section 330 of the Public Health Service Act and providers participating in one or more of the programs under titles XVIII,

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XIX, and XXI of the Social Security Act (relating to

3

Medicare, Medicaid, and the State Children’s Health

4

Insurance Program).

5

(4) Infrastructure and tools for the promotion of

6 7

telemedicine, including coordination among Federal

8

agencies in the promotion of telemedicine.

9 10

(5) Promotion of the interoperability of clinical data repositories or registries.

11

The Secretary shall implement paragraph (3) in coordination 12 13 14 15

with State agencies administering the Medicaid program and the State Children’s Health Insurance Program. (b) LIMITATION .—None of the funds appropriated to carry out this section may be used to make significant investments in, or provide significant funds for, the acquisition of hardware or software or for the use of an electronic health or medical record, or significant components thereof, unless such investments or funds are for certified products that would permit the full and accurate electronic exchange and use of health information in a medical record, including standards for security, privacy, and quality im provement functions adopted by the Office of the National Coordinator for Health Information Technology.

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(c) R EPORT.—The Secretary shall annually report to the

3

Committees on Energy and Commerce, on Ways and Means,

4

on Science and Technology, and on Appropriations of the

5 6

House of Representatives and the Committees on Finance, on

7

Health,

8

Appropriations of the Senate on the uses of these funds and

9

their impact on the infrastructure for the electronic exchange

10

Education,

Labor,

and

Pensions,

and

on

and use of health information.

11 12

Subtitle C—Education

13

DEPARTMENT OF EDUCATION

14

E DUCATION FOR THE D ISADVANTAGED

15

For an additional amount for ‘‘Education for the Disadvantaged’’ to carry out title I of the Elementary and Secondary

Education

Act

of

1965 (‘‘ESEA’’),

$13,000,000,000: Provided, That $5,500,000,000 shall be available for targeted grants under section 1125 of the ESEA, of which $2,750,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $2,750,000,000 shall become available on July 1, 2010, and shall remain available through September 30,

2011: Provided

further,

That

$5,500,000,000 shall be available for education finance incentive grants under section 1125A of the ESEA, of which HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

$2,750,000,000 shall become available on July 1, 2009,

3

and shall remain available through September 30, 2010,

4

and $2,750,000,000 shall become available on July 1,

5 6

2010, and shall remain available through September 30,

7

2011: Provided further, That $2,000,000,000 shall be for

8

school improvement grants under section 1003(g) of the

9

ESEA, of which $1,000,000,000 shall become available on

10

July 1, 2009, and shall remain available through September

11

30, 2010, and $1,000,000,000 shall become available on 12 13

July 1, 2010, and shall remain available through September

14

30, 2011: Provided further, That the provisions of section

15

1106 of this Act shall not apply to this appropriation. IMPACT A ID For an additional amount for ‘‘Impact Aid’’ to carry out section 8007 of title VIII of the Elementary and Secondary Education Act of 1965, $100,000,000, which shall remain available through September 30, 2010: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section. S CHOOL IMPROVEMENT P ROGRAMS For an additional amount for ‘‘School Improvement Programs’’ to carry out subpart 1, part D of title II of the HR 1 PP

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2

1 2

Elementary

3

(‘‘ESEA’’), and subtitle B of title VII of the McKinney-

4

and

Secondary

Education

Act

of

1965

Vento Homeless Assistance Act, $1,066,000,000: Provided,

5 6

That $1,000,000,000 shall be available for subpart 1, part D

7

of title II of the ESEA, of which $500,000,000 shall become

8

available on July 1, 2009, and shall remain available through

9

September 30, 2010, and $500,000,000

10

shall become

available on July 1, 2010, and remain available through

11

September 30, 2011: Provided further, That the provisions of 12 13

section 1106 of this Act shall not apply to these funds:

14

Provided further, That $66,000,000 shall be available for

15

subtitle B of title VII of the McKinney- Vento Homeless Assistance Act, of which $33,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $33,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011. INNOVATION AND IMPROVEMENT For an additional amount for ‘‘Innovation and Improvement’’ to carry out subpart 1, part D and subpart 2, part B of title V of the Elementary and Secondary Education Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, That $200,000,000 shall be available for subpart 1, part D of title V of the ESEA: Provided further, That these funds HR 1 PP

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2

1 2

shall be expended as directed in the fifth, sixth, and seventh

3

provisos under the heading ‘‘Innovation and Im provement’’

4

in the Department of Education Appropriations Act, 2008:

5 6

Provided further, That a portion of these funds shall also

7

be used for a rigorous national evaluation by the Institute of

8

Education Sciences, utilizing randomized controlled

9

methodology to the extent feasible, that assesses the impact

10

of performance-based teacher and principal compensation

11

systems supported by the funds provided in this Act on 12 13

teacher and principal recruitment and retention in high-need

14

schools and subjects: Provided further, That $25,000,000

15

shall be available for subpart 2, part B of title V of the ESEA: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section. S PECIAL E DUCATION For an additional amount for ‘‘Special Education’’ for carrying out section 611 and part C of the Individuals with Disabilities Education

Act

(‘‘IDEA’’),

$13,600,000,000: Provided, That $13,000,000,000 shall be available for section 611 of the IDEA, of which $6,000,000,000 shall become available on July 1, 2009, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and remain available through September 30, 2010, and

3

$7,000,000,000 shall become available on July 1, 2010,

4

and remain available through September 30, 2011: Provided

5 6

further, That $600,000,000 shall be available for part C of

7

the IDEA, of which $300,000,000 shall become available

8

on July 1, 2009, and remain available through September

9

30, 2010, and $300,000,000 shall become available on July

10

1, 2010, and remain available through September 30, 2011:

11

Provided further, That by July 1, 2009, the Secretary of 12 13

Education shall reserve the amount needed for grants under

14

section 643(e) of the IDEA from funds available for

15

obligation on July 1, 2009, with any remaining funds to be allocated in accordance with section 643(c) of the IDEA: Provided further, That by July 1, 2010, the Secretary shall reserve the amount needed for grants under section 643(e) of the IDEA from funds available for obligation on July 1, 2010, with any remaining funds to be allocated in accordance with section 643(c) of the IDEA: Provided further, That if every State, as defined by section 602(31) of the IDEA, reaches its maximum allocation under section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, such funds shall be proportionally allocated to each

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2

1 2

State subject to the maximum amounts contained in section

3

611(a)(2) of the IDEA: Provided further, That the

4

provisions of section 1106 of this Act shall not apply to this

5 6

appropriation.

7

R EHABILITATION S ERVICES AND D ISABILITY R ESEARCH For an

8

additional amount for ‘‘Rehabilitation Services and

9

Disability Research’’ for providing grants to States to carry

10

out the Vocational Rehabilitation Services program under

11

part B of title I and parts B and C of chapter 1 and chapter 12 13

2 of title VII of the Rehabilitation Act of 1973,

14

$700,000,000: Provided, That $500,000,000 shall be

15

available for part B of title I of the Rehabilitation Act, of which $250,000,000 shall become available on October 1, 2009: Provided further, That funds provided herein shall not be considered in determining the amount required to be appropriated under section 100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: Provided further, That, notwithstanding section 7(14)(A), the Federal share of the costs of vocational rehabilitation services provided with the funds provided herein shall be 100 percent: Provided further, That the provisions of section 1106 of this Act shall not apply to these funds: Provided further, That

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2

1 2

$200,000,000 shall be available for parts B and C of

3

chapter 1 and chapter 2 of title VII of the Rehabilitation

4

Act, of which $100,000,000 shall become available on

5 6

October 1, 2009: Provided further, That $34,775,000 shall

7

be for State Grants, $114,581,000 shall be for independent

8

living centers, and $50,644,000 shall be for services for

9

older blind individuals.

10 11

S TUDENT FINANCIAL A SSISTANCE For an additional amount for ‘‘Student Financial As-

12 13

sistance’’ to carry out subpart 1 of part A and part C of title

14

IV of the Higher Education Act of 1965 (‘‘HEA’’),

15

$16,126,000,000, which shall remain available through September 30, 2011: Provided, That $15,636,000,000 shall be available for subpart 1of part A of title IV of the HEA: Provided further, That $490,000,000 shall be available for part C of title IV of the HEA, of which $245,000,000 shall become available on October 1, 2009: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation. The maximum Pell Grant for which a student shall be eligible during award year 2009–2010 shall be $4,860. S TUDENT A ID A DMINISTRATION For an additional amount for ‘‘Student Aid AdminisHR 1 PP

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2

1 2

tration’’ to carry out part D of title I, and subparts 1, 3, and

3

4 of part A, and parts B, C, D, and E of title IV of the

4

Higher Education Act of 1965, $50,000,000, which shall

5 6

remain available through September 30, 2011: Provided,

7

That such amount shall also be available for an independent

8

audit of programs and activities authorized under section

9

459A of such Act: Provided further, That the provisions of

10

section 1106 of this Act shall not apply to this

11

appropriation. 12

H IGHER E DUCATION

13 14

For an additional amount for ‘‘Higher Education’’ to

15

carry out part A of title II of the Higher Education Act of 1965, $100,000,000: Provided, That section 203(c)(1) of such Act shall not apply to awards made with these funds. INSTITUTE OF E DUCATION S CIENCES For an additional amount for Institute of Education Sciences to carry out section 208 of the Educational Technical Assistance Act, $250,000,000, which may be used for Statewide data systems that include postsecondary and workforce information, of which up to $5,000,000 may be used for State data coordinators and for awards to public or private organizations or agencies to improve data coordination: Provided, That the amount set aside from this HR 1 PP

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2

1 2

appropriation pursuant to section 1106 of this Act shall be

3

1 percent instead of the percentage specified in such

4

section.

5 6

S CHOOL M ODERNIZATION , R ENOVATION ,

AND

R EPAIR For

7

carrying out section 9301 of this Act, $14,000,000,000:

8

Provided, That amount available under section 9301 of this

9

Act for administration and oversight shall take the place of

10

the set-aside under section 1106 of this Act.

11

H IGHER E DUCATION M ODERNIZATION , R ENOVATION ,

AND

12 13

R EPAIR For carrying out section 9302 of this Act,

14

$6,000,000,000: Provided, That amount available under

15

section 9302 of this Act for administration and oversight shall take the place of the set-aside under section 1106 of this Act. GENERAL PROVISIONS, THIS SUBTITLE SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB LIC SCHOOL FACILITIES.

(a) D EFINITIONS.—In this section: (1) The term ‘‘Bureau-funded school’’ has the meaning given to such term in section 1141 of the Education Amendments of 1978 (25 U.S.C. 2021). (2) The term ‘‘charter school’’ has the meaning given such term in section 5210 of the Elementary and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Secondary Education Act of 1965.

3

(3) The term ‘‘local educational agency’’—

4

(A) has the meaning given to that term in

5

section 9101 of the Elementary and Secondary 6

Education Act of 1965, and shall also include the

7 8

Recovery School District of Louisiana and the New

9

Orleans Public Schools; and

10

(B) includes any public charter school that

11

constitutes a local educational agency under State

12

law.

13

(4) The term ‘‘outlying area’’—

14

(A) means the United States Virgin Islands,

15

Guam, American Samoa, and the Com monwealth of the Northern Mariana Islands; and (B) includes the freely associated states of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. (5) The term ‘‘public school facilities’’ includes charter schools. (6) The term ‘‘State’’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(7) The term ‘‘LEED Green Building Rating

3

System’’ means the United States Green Building

4

Council Leadership in Energy and Environmental Design

5 6 7

green building rating standard referred to as the LEED Green Building Rating System. (8) The term ‘‘Energy Star’’ means the Energy

8 9 10

Star program of the United States Department of Energy and the United States Environmental Protection

11

Agency. 12

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

13 14

building rating program developed by the Collaborative

15

for High Performance Schools. (10) The term ‘‘Green Globes’’ means the Green Building Initiative environmental design and

rating

system referred to as Green Globes. (b) P URPOSE.—Grants under this section shall be for the purpose of modernizing, renovating, or repairing public school facilities, based on their need for such improvements, to be safe, healthy, high-performing, and up-to- date technologically. (c) A LLOCATION OF FUNDS.— (1) R ESERVATIONS.— (A) IN GENERAL.—From the amount apHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

propriated to carry out this section, the Secretary

3

of Education shall reserve 1 percent of such

4

amount, consistent with the purpose described in

5

subsection (b)—

6

(i) to provide assistance to the outlying

7

areas; and

8 9

(ii) for payments to the Secretary of the

10

Interior to provide assistance to Bu-

11

reau-funded schools. 12

(B) A DMINISTRATION

13

may,

in

AND OVERSIGHT.—

addition,

reserve

The

14

Secretary

up

to

15

$6,000,000 of such amount for administration and oversight of this section. (2) A LLOCATION TO STATES.— (A) S TATE -BY -STATE ALLOCATION .—Of the amount appropriated to carry out this section, and not reserved under paragraph (1), each State shall be allocated an amount in proportion to the amount received by all local educational agencies in the State under part A of title I of the Elementary and Secondary Education Act of 1965 for fiscal year 2008 relative to the total amount received by all local educational agencies in every HR 1 PP

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2

1

State under such part for such fiscal year.

2 3

(B) S TATE ADMINISTRATION .—A State may

4

reserve up to 1 percent of its allocation under

5

subparagraph (A) to carry out its responsibilities

6

under this section, including—

7

(i) providing technical assistance to

8 9

local educational agencies;

10

(ii) developing, within 6 months of re-

11

ceiving its allocation under subparagraph 12

(A), a plan to develop a database that in-

13 14

cludes an inventory of public school facilities

15

in the State and the modernization, renovation, and repair needs of, energy use by, and the carbon footprint of such schools; and (iii) developing a school energy efficiency quality plan. (C) G RANTS TO LOCAL EDUCATIONAL AGENCIES.—From

the amount allocated to a State

under subparagraph (A), each local educational agency in the State that meets the requirements of section 1112(a) of the Elementary and Secondary

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2

1 2

Education Act of 1965 shall receive an amount in

3

proportion to the amount received by such local

4

educational agency under part A of title I of that

5

Act for fiscal year 2008 relative to the total

6 7

amount received by all local educational agencies

8

in the State under such part for such fiscal year,

9

except that no local educational agency that

10

received funds under part A of title I of that Act

11

for such fiscal year shall receive a grant of less 12

than $5,000.

13 14

(D) S PECIAL RULE .—Section 1122(c)(3) of the

15

Elementary and Secondary Education Act of 1965 shall not apply to subparagraph (A) or (C). (3) S PECIAL RULES.— (A) D ISTRIBUTIONS BY SECRETARY .—The Secretary of Education shall make and dis tribute the reservations and allocations described in paragraphs (1) and (2) not later than 30 days after the date of the enactment of this Act. (B) D ISTRIBUTIONS BY STATES.—A State shall make and distribute the allocations described in paragraph (2)(C) within 30 days of receiving such HR 1 PP

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2

1

funds from the Secretary.

2 3

(d) U SE IT OR LOSE IT R EQUIREMENTS.—

4

(1) D EADLINE FOR BINDING COMMITMENTS.— Each

5

local educational agency receiving funds under this 6 7

section shall enter into contracts or other binding

8

commitments not later than 1 year after the date of the

9

enactment of this Act (or not later than 9 months after

10 11

such funds are awarded, if later) to make use of 50 percent of such funds, and shall enter into contracts or

12 13

other binding commitments not later than 2 years after

14

the date of the enactment of this Act (or not later than

15

21 months after such funds are awarded, if later) to make use of the remaining funds. In the case of activities to be carried out directly by a local educational agency (rather than by contracts, subgrants, or other arrangements with third parties), a certification by the agency specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this subsection. (2) FUNDS.—A

R EDISTRIBUTION

OF

UNCOMMITTED

State shall recover or deobligate any funds

not committed in accordance with paragraph (1), and redistribute such funds to other local educational HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

agencies eligible under this section and able to make

3

use of such funds in a timely manner (including binding

4

commitments within 120 days after the reallocation).

5 6

(e) A LLOWABLE U SES OF FUNDS.—A local educational

7

agency receiving a grant under this section shall use the

8

grant for modernization, renovation, or repair of public

9

school facilities, including—

10

(1) repairing, replacing, or installing roofs, in-

11

cluding extensive, intensive or semi-intensive green 12 13

roofs, electrical wiring, plumbing systems, sewage

14

systems, lighting systems, or components of such

15

systems, windows, or doors, including security doors; (2) repairing, replacing, or installing heating, ventilation, air conditioning systems, or components of such systems (including insulation), including indoor air quality assessments; (3) bringing public schools into compliance with fire, health, and safety codes, including professional installation of fire/life safety alarms, including modernizations, renovations, and repairs that ensure that schools are prepared for emergencies, such as improving building infrastructure to accommodate

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2

1 2

security measures;

3 4

(4) modifications necessary to make public school facilities accessible to comply with the Ameri-

5 6

cans with Disabilities Act of 1990 (42 U.S.C. 12101 et

7

seq.) and section 504 of the Rehabilitation Act of 1973

8

(29 U.S.C. 794), except that such modifications shall

9

not be the primary use of the grant;

10

(5) asbestos or polychlorinated biphenyls abate-

11

ment or removal from public school facilities; 12

(6) implementation of measures designed to re-

13 14

duce or eliminate human exposure to lead-based paint

15

hazards through methods including interim controls, abatement, or a combination of each; (7) implementation of measures designed to reduce or eliminate human exposure to mold or mildew; (8) upgrading or installing educational technology infrastructure to ensure that students have access to up-to-date educational technology; (9) technology activities that are carried out in connection with school repair and renovation, including— (A) wiring; (B) acquiring hardware and software; HR 1 PP

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1

(C) acquiring connectivity linkages and re-

2 3

sources; and

4

(D) acquiring microwave, fiber optics, cable,

5

and satellite transmission equipment;

6 7

(10) modernization, renovation, or repair of

8

science and engineering laboratory facilities, libraries,

9

and career and technical education facilities, including

10

those related to energy efficiency and renewable

11

energy, and improvements to building infrastructure to 12 13

accommodate bicycle and pedestrian access; (11) renewable energy generation and heating

14 15

systems, including solar, photovoltaic, wind, geothermal, or biomass, including wood pellet, systems or components of such systems; (12) other modernization, renovation, or repair of public school facilities to— (A) improve teachers’ ability to teach and students’ ability to learn; (B) ensure the health and safety of students and staff; (C) make them more energy efficient; or (D) reduce class size; and (13) required environmental remediation related to HR 1 PP

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1 2

public school modernization, renovation, or repair

3

described in paragraphs (1) through (12).

4

(f) IMPERMISSIBLE U SES OF FUNDS.—No funds received

5 6

under this section may be used for— (1) payment of maintenance costs; or

7 8

(2) stadiums or other facilities primarily used for

9

athletic contests or exhibitions or other events for which

10 11

admission is charged to the general public. (g) S UPPLEMENT, N OT S UPPLANT.—A local educational

12 13

agency receiving a grant under this section shall use such

14

Federal funds only to supplement and not supplant the

15

amount of funds that would, in the absence of such Federal funds, be available for modernization, renovation, or repair of public school facilities. (h) P ROHIBITION R EGARDING S TATE A ID .—A State shall not take into consideration payments under this section in determining the eligibility of any local educational agency in that State for State aid, or the amount of State aid, with respect to free public education of children. (i) S PECIAL R ULE ON C ONTRACTING .—Each local educational agency receiving a grant under this section shall ensure that, if the agency carries out modernization, renovation, or repair through a contract, the process for any HR 1 PP

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2

1 2

such contract ensures the maximum number of qualified

3

bidders, including local, small, minority, and women- and

4

veteran-owned businesses, through full and open com-

5 6 7 8

petition. (j) S PECIAL R ULE ON U SE OF IRON AND S TEEL P RODUCED IN THE

U NITED S TATES.—

9 10

(1) IN GENERAL.—A local educational agency shall not obligate or expend funds received under this

11

section for a project for the modernization, renovation, 12 13

or repair of a public school facility unless all of the

14

iron and steel used in such project is produced in the

15

United States. (2) E XCEPTIONS.—The provisions of paragraph (1) shall not apply in any case in which the local educational agency finds that— (A) their application would be inconsistent with the public interest; (B) iron and steel are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or (C) inclusion of iron and steel produced in the United States will increase the cost of the HR 1 PP

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2

1

overall project contract by more than 25 percent.

2 3 4

(k) A PPLICATION OF GEPA.—The grant program under this section is an applicable program (as that term is

5 6

defined in section 400 of the General Education Provisions

7

Act (20 U.S.C. 1221)) subject to section 439 of such Act

8

(20 U.S.C. 1232b).

9 10

(l) C HARTER S CHOOLS.—A local educational agency receiving an allocation under this section shall use an equi-

11

table portion of that allocation for allowable activities ben12 13

efitting charter schools within its jurisdiction, as determined

14

based on the percentage of students from low-income

15

families in the schools of the agency who are enrolled in charter schools and on the needs of those schools as determined by the agency. (m) G REEN S CHOOLS.— (i) IN GENERAL.—A local educational agency shall use not less than 25 percent of the funds received under this section for public school modernization, renovation, or repairs that are certified, verified, or consistent with any applicable provisions of— (A) the LEED Green Building Rating System;

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2

1 2

(B) Energy Star;

3

(C) the CHPS Criteria;

4

(D) Green Globes; or

5

(E) an equivalent program adopted by the

6

State or another jurisdiction with authority over the

7 8

local educational agency.

9

(2) T ECHNICAL ASSISTANCE.—The Secretary, in

10 11

consultation with the Secretary of Energy and the Administrator of the Environmental Protection

12 13

Agency, shall provide outreach and technical assistance

14

to States and school districts concerning the best

15

practices in school modernization, renovation, and repair, including those related to student academic achievement and student and staff health, energy efficiency, and environmental protection. (n)

Y OUTHBUILD

P ROGRAMS.—The

Secretary

of

Education, in consultation with the Secretary of Labor, shall work with recipients of funds under this section to promote appropriate opportunities for participants in a YouthBuild program (as defined in section 173A of the

Workforce

Investment Act of 1998 (29 U.S.C. 2918a)) to

gain

employment experience on modernization, renovation, and repair projects funded under this section. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(o) R EPORTING .—

3 4

(1) R EPORTS BY LOCAL EDUCATIONAL AGEN CIES.—Local

educational agencies receiving a grant

5

under this section shall compile, and submit to the 6 7

State educational agency (which shall compile and

8

submit such reports to the Secretary), a report de-

9

scribing the projects for which such funds were used,

10

including—

11

(A) the number of public schools in the

12

agency, including the number of charter schools;

13

(B) the total amount of funds received by the

14 15

local educational agency under this section and the amount of such funds expended, including the amount expended for modernization, renovation, and repair of charter schools; (C) the number of public schools in the agency with a metro-centric locale code of 41, 42, or 43 as determined by the National Center for Education Statistics and the percentage of funds received by the agency under this section that were used for projects at such schools; (D) the number of public schools in the agency that are eligible for schoolwide programs under HR 1 PP

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2

1 2

section 1114 of the Elementary and Sec

3

ondary Education Act of 1965 and the percentage

4

of funds received by the agency under this section

5

that were used for projects at such schools;

6

(E) the cost of each project, which, if any, of

7 8

the standards described in subsection (k)(1) the

9

project met, and any demonstrable or expected

10

academic, energy, or environmental benefits as a

11

result of the project; 12

(F) if flooring was installed, whether—

13

(i) it was low- or no-VOC (Volatile

14 15

Organic Compounds) flooring; (ii) it was made from sustainable materials; and (iii) use of flooring described in clause (i) or (ii) was cost effective; and (G) the total number and amount of contracts awarded, and the number and amount of contracts awarded to local, small, minority- owned, women-owned, and veteran-owned businesses. (2) R EPORTS

BY

SECRETARY .—Not

later than

December 31, 2011, the Secretary of Education shall submit to the Committees on Education and Labor and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Appropriations of the House of Rep

3

resentatives and the Committees on Health, Education,

4

Labor, and Pensions and Appropriations of the Senate

5 6

a report on grants made under this section, including

7

the information described in paragraph (1), the types of

8

modernization, renovation, and repair funded, and the

9

number of students impacted, including the number of

10

students counted under section 1113(a)(5) of the

11

Elementary and Secondary Education Act of 1965. 12 13

SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA TION, AND REPAIR.

14 15

(a) P URPOSE.—Grants awarded under this section shall be for the purpose of modernizing, renovating, and repairing institution of higher education facilities that are primarily used for instruction, research, or student housing. (b) G RANTS TO S TATE H IGHER E DUCATION A GENCIES.— (1) FORMULA.—From the amounts appropriated to carry out this section, the Secretary of Education shall allocate funds to State higher education agencies based on the number of students attending institutions of higher education, with the State higher education agency in each State receiving an amount that is in proportion to the number of full-time equivalent HR 1 PP

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2

1 2

undergraduate students attending institutions of higher

3

education in such State for the most recent fiscal year

4

for which there are data available, relative to the total

5 6

number of full-time equivalent undergraduate students

7

attending institutions of higher education in all States

8

for such fiscal year.

9 10

(2) A PPLICATION .—To be eligible to receive an allocation from the Secretary under paragraph (1), a

11

State higher education agency shall submit an ap12 13 14

plication to the Secretary at such time and in such manner as the Secretary may reasonably require.

15

(3) R EALLOCATION .—Amounts allocated to a State higher education agency under this section that are not obligated by such agency within 6 months of the date the agency receives such amounts shall be returned to the Secretary, and the Secretary shall reallocate such amounts to State higher education agencies in other States on the same basis as the original allocations under paragraph (1)(B). (4) A DMINISTRATION AND OVERSIGHT EX PENSES.—From

the amounts appropriated to carry out

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

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1

2

2

available to the Secretary for administrative and

3

oversight expenses related to carrying out this section.

4

(c) U SE OF G RANTS BY S TATE H IGHER E DUCATION

5 6

A GENCIES.— (1) S UBGRANTS TO INSTITUTIONS OF HIGHER

7 8

EDUCATION .—

9

(A) IN GENERAL.—Except as provided in

10

paragraph (2), each State higher education agency

11

receiving an allocation under subsection (b)(1) 12

shall use the amount allocated to award subgrants

13 14

to institutions of higher education within the State

15

to carry out projects in accordance with subsection (d)(1). (B) S UBGRANT AWARD ALLOCATION .—A State higher education agency shall award subgrants to institutions of higher education under this section based on the demonstrated need of each institution for facility modernization, renovation, and repair. (C)

P RIORITY

CONSIDERATIONS.—In

awarding subgrants under this section, each State higher education agency shall give priority

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2

1 2

consideration to institutions of higher education

3

with any of the following characteristics:

4

(i) The institution is eligible for Federal

5

assistance under title III or title V of the

6

Higher Education Act of 1965.

7

(ii) The institution was impacted by a

8 9

major disaster or emergency declared by the

10

President (as defined in section 102(2) of the

11

Robert T. Stafford Disaster Relief and 12

Emergency Assistance Act (42 U.S.C.

13 14

5122(2))), including an institution affected

15

by a Gulf hurricane disaster, as such term is defined in section 824(g)(1) of the Higher Education Act of 1965 (20 U.S.C. 11611–3(g)(1)). (iii) The institution demonstrates that the proposed project or projects to be carried out with a subgrant under this section will increase the energy efficiency of the institution’s facilities and comply with the LEED Green Building Rating System. (2) A DMINISTRATIVE AND OVERSIGHT EX -

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2

1 2

PENSES.—Of

3

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

4

the allocation amount received under

reserve not more than 5 percent of such amount, or

5 6

$500,000, whichever is less, for adminis trative and

7

oversight expenses related to carrying out this section.

8

(d) U SE OF S UBGRANTS BY INSTITUTIONS OF H IGHER

9

E DUCATION .—

10

(1) P ERMISSIBLE USES OF FUNDS.—An institution of

11

higher education receiving a subgrant under this 12 13

section shall use such subgrant to modernize, renovate,

14

or repair facilities of the institution that are primarily

15

used for instruction, research, or student housing, which may include any of the following: (A) Repair, replacement, or installation of roofs, electrical wiring, plumbing systems, sewage systems, or lighting systems. (B) Repair, replacement, or installation of heating, ventilation, or air conditioning systems (including insulation). (C) Compliance with fire and safety codes, including— (i) professional installation of fire or

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2

1

life safety alarms; and

2 3

(ii) modernizations, renovations, and

4

repairs that ensure that the institution’s

5

facilities are prepared for emergencies, such

6 7

as improving building infrastructure

8

accommodate security measures.

9

(D) Retrofitting necessary to increase the

10

to

energy efficiency of the institution’s facilities.

11

(E) Renovations to the institution’s facilities 12

necessary to comply with accessibility re-

13 14

quirements in the Americans with Disabilities Act

15

of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). (F) Abatement or removal of asbestos from the institution’s facilities. (G) Modernization, renovation, and repair relating to improving science and engineering laboratories, libraries, and instructional facilities. (H) Upgrading or installation of educational technology infrastructure. (I) Installation or upgrading of renewable

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2

1 2

energy generation and heating systems, including

3

solar, photovoltaic, wind, biomass (including

4

wood pellet), or geothermal systems, or compo-

5

nents of such systems.

6

(J) Other modernization, renovation, or repair

7 8

projects that are primarily for instruction,

9

research, or student housing.

10

(2) G REEN SCHOOL REQUIREMENT.—An institution

11

of higher education receiving a subgrant under this 12 13

section shall use not less than 25 percent of such

14

subgrant to carry out projects for modernization,

15

renovation, or repair that are certified, verified, or consistent with the applicable provisions of— (A) the LEED Green Building Rating System; (B) Energy Star; (C) the CHPS Criteria; (D) Green Globes; or (E) an equivalent program adopted by the State or the State higher education agency. (3) P ROHIBITED USES OF FUNDS.—No funds awarded under this section may be used for— (A) the maintenance of systems, equipment, or HR 1 PP

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2

1 2

facilities, including maintenance associated with any

3

permissible uses of funds described in paragraph

4

(1);

5

(B) modernization, renovation, or repair of

6 7

stadiums or other facilities primarily used for

8

athletic contests or exhibitions or other events for

9

which admission is charged to the general public;

10

(C) modernization, renovation, or repair of

11

facilities— 12

(i) used for sectarian instruction, reli-

13 14

gious worship, or a school or department of

15

divinity; or (ii) in which a substantial portion of the functions of the facilities are subsumed in a religious mission; or (D) construction of new facilities. (iv) U SE IT OR LOSE IT REQUIREMENTS.— (A) D EADLINE FOR BINDING COMMITMENTS.—Each

institution of higher education

receiving a subgrant under this section shall enter into contracts or other binding commitments not later than 1 year after the date of the enactment of this Act (or not later than 9 months after the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subgrant is awarded, if later) to make use of 50

3

percent of the funds awarded, and shall enter into

4

contracts or other binding commitments not later

5

than 2 years after the date of the enactment of this

6 7

Act (or not later than 21 months after the subgrant

8

is awarded, if later) to make use of the remaining

9

funds. In the case of activities to be carried out

10

directly by an institution of higher education re-

11

ceiving such a subgrant (rather than by contracts, 12

subgrants, or other arrangements with third

13 14

parties), a certification by the institution

15

specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this section. (B) R EDISTRIBUTION OF UNCOMMITTED FUNDS.—A

State higher education agency shall

recover or deobligate any subgrant funds not committed in accordance with subparagraph (A), and redistribute such funds to other institutions of higher education that are— (i) eligible for subgrants under this section; and

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2

1 2

(ii) able to make use of such funds in

3

a timely manner (including binding com-

4

mitments within 120 days after the re-

5

allocation). 6 7

(e) A PPLICATION OF GEPA.—The grant program au-

8

thorized in this section is an applicable program (as that

9

term is defined in section 400 of the General Education

10 11

Provisions Act (20 U.S.C. 1221)) subject to section 439 of such Act (20 U.S.C. 1232b). The Secretary shall, not-

12 13

withstanding section 437 of such Act (20 U.S.C. 1232) and

14

section 553 of title 5, United States Code, establish such

15

program rules as may be necessary to implement such grant program by notice in the Federal Register. (f) R EPORTING .— (1) R EPORTS BY INSTITUTIONS.—Not later than September 30, 2011, each institution of higher education receiving a subgrant under this section shall submit to the State higher education agency awarding such subgrant a report describing the projects for which such subgrant was received, including— (A) a description of each project carried out, or planned to be carried out, with such subgrant, including the types of modernization, renovation, HR 1 PP

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2

1

and repair to be completed by each such project;

2 3

(B) the total amount of funds received by the

4

institution under this section and the amount of such

5

funds expended, as of the date of the report, on the

6

such projects;

7

(C) the actual or planned cost of each such

8 9

project and any demonstrable or expected aca

10

demic, energy, or environmental benefits resulting

11

from such project; and 12

(D) the total number of contracts, and

13 14

amount of funding for such contracts, awarded by

15

the institution to carry out such projects, as of the date of such report, including the number of contracts, and amount of funding for such contracts, awarded to local, small, minority-owned, women-owned, and veteran-owned businesses, as such terms are defined by the Small Business Act. (2) R EPORTS BY STATES.—Not later than December 31, 2011, each State higher education agency receiving a grant under this section shall submit to the Secretary a report containing a compilation of all of the reports

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1

2

2

under paragraph (1) submitted to the agency by

3

institutions of higher education.

4

(3) R EPORTS BY THE SECRETARY .—Not later than

5 6

March 31, 2012, the Secretary shall submit to the

7

Committee on Education and Labor in the House of

8

Representatives and the Committee on Health,

9

Education, Labor, and Pensions in the Senate and

10

Committees on Appropriations of the House of

11

Representatives and the Senate a report on grants and 12 13 14 15

subgrants made under this section, including the information described in paragraph (1). (g) D EFINITIONS.—In this section: (1) C HPS CRITERIA.—The term ‘‘CHPS Criteria’’ means the green building rating program developed by the Collaborative for High Performance Schools. (2) E NERGY STAR.—The term ‘‘Energy Star’’ means the Energy Star program of the United

States

Department

States

of

Energy

and

the

United

Environmental Protection Agency. (3)

G REEN

GLOBES.—The

term

‘‘Green Globes’’ means the Green Building Initiative environmental design and rating system referred to as Green Globes. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(4) INSTITUTION OF HIGHER EDUCATION .—The term

2 3 4

‘‘institution of higher education’’ has the meaning given such term in section 101 of the Higher Education

5 6

Act of 1965. (5) LEED

7

GREEN BUILDING RATING SYSTEM .—The

8

term ‘‘LEED Green Building Rating System’’ means

9

the United States Green Building Council Leadership

10

in Energy and Environmental Design green building

11

rating standard referred to as the LEED Green 12 13

Building Rating System. (6) S ECRETARY .—The term ‘‘Secretary’’ means

14 15

the Secretary of Education. (7) S TATE .—The term ‘‘State’’ has the meaning given such term in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003). (8) S TATE HIGHER EDUCATION AGENCY .—The term ‘‘State higher education agency’’ has the meaning given such term in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003). SEC. 9303. MANDATORY PELL GRANTS.

Section 401(b)(9)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended— (1) in clause (ii), by striking ‘‘$2,090,000,000’’ HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and inserting ‘‘$2,733,000,000’’; and

3 4

(2) in clause (iii), by striking ‘‘$3,030,000,000’’ and inserting ‘‘$3,861,000,000’’.

5 SEC. 9304. INCREASE STUDENT LOAN LIMITS.

6 7 8

(a) A MENDMENTS.—Section 428H(d) of the Higher Education Act of 1965 (20 U.S.C. 1078–8(d)) is amended—

9 10

(1) in paragraph (3)—

11

(A) in subparagraph (A), by striking

12

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

13

(B) in subparagraph (B), by striking

14

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

15

(2) in paragraph (4)— (A) in subparagraph (A)— (i) in clause (i)(I) and clause (iii)(I), by striking ‘‘$6,000’’ each place it appears and inserting ‘‘$8,000’’; and (ii)

in

clause

(ii)(I) and

clause (iii)(II), by striking ‘‘$7,000’’ each place it appears and inserting ‘‘$9,000’’; and (B) in subparagraph (B), by striking ‘‘$57,500’’ and inserting ‘‘$65,500’’. (ii) E FFECTIVE D ATE .—The amendments made by this HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section shall be effective for loans first disbursed on or after

3

January 1, 2009.

4 5

SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE.

(a)

T EMPORARY C ALCULATION

RULE.—Section

6 7

438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C.

8

1087–1(b)(2)(I)) is amended by adding at the end

9

following new clause:

10

the

‘‘(vii)T EMPORARYCALCULATION

11

RULE DURING UNSTABLE COMMERCIAL PAPER

12 MARKETS.—

13

‘‘(I)

14 15

C ALCULATIO N

LIBOR.—For

B ASE D

ON

the calendar quarter be-

ginning on October 1, 2008, and ending on December 31, 2008, in com puting the special allowance paid pursuant to this subsection with respect to loans for which the first disbursement is made on or after January 1, 2000, clause (i)(I) of this subparagraph shall be applied by substituting ‘the rate that is the average rate of the 3-month London Inter Bank Offered (LIBOR)

for

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Rate United States dollars

2

1 2

in effect for each of the days in such

3

quarter as compiled and released by the

4

British Bankers Association, minus 0.13

5

percent,’ for ‘the average of the bond

6 7

equivalent rates of the quotes of the

8

3-month commercial paper (financial)

9

rates in effect for each of the days in

10

such quarter as reported by the Federal

11

Reserve in Publication H–15 (or its 12

successor) for such 3-month period’.

13

‘‘(II)

14 15

P ARTICIPATION

ESTS.—Notwithstanding

INTER-

subclause (I) of

this clause, the special allowance paid on any loan held by a lender that has sold participation interests in such loan to the Secretary shall be the rate computed under this subparagraph without regard to subclause (I) of this clause, unless the lender agrees that the participant’s yield with respect to such participation interest is to be calculated in accordance with subclause (I) of this

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1

2

2

clause.’’.

3 4

(b)

C ONFORMING

A M E N D M E N T S . — S e c t io n

438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C.

5 6

1087–1(b)(2)(I)) is further amended— (1) in clause (i)(II), by striking ‘‘such average

7 8

bond equivalent rate’’ and inserting ‘‘the rate deter-

9

mined under subclause (I)’’; and

10

(2) in clause (v)(III), by striking ‘‘(iv), and (vi)’’

11

and inserting ‘‘(iv), (vi), and (vii)’’. 12 13 14

Subtitle D—Related Agencies C ORPORATION FOR N ATIONAL AND C OMMUNITY S ERVICE

15

OPERATING EXPENSES

For an additional amount for ‘‘Operating Expenses’’ to carry out the Domestic Volunteer Service Act of 1973 and the National and Community Service Act of 1990 (‘‘1990 Act’’), $160,000,000, which shall be used to expand existing AmeriCorps grants: Provided, That funds made available under this heading may be used to provide adjustments to awards made prior to September 30, 2010 in order to waive the match requirement authorized in section 121(e)(4) of part I of subtitle C of the 1990 Act, if the Chief Executive Officer of the Corporation for National and Community Service (‘‘CEO’’) determines that the grantee HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

has reduced capacity to meet this requirement: Provided

3

further, That in addition to requirements identified herein,

4

funds provided under this heading shall be subject to the

5 6

terms and conditions under which funds are appropriated in

7

fiscal year 2009: Provided further, That the CEO shall

8

provide the Committees on Appropriations of the House of

9

Representatives and the Senate a fiscal year 2009 operating

10

plan for the funds appropriated under this heading prior to

11

making any Federal obligations of such funds in fiscal year 12 13

2009, but not later than 90 days after the date of enactment

14

of this Act, and a fiscal year 2010 operating plan for such

15

funds prior to making any Federal obligations of such funds in fiscal year 2010, but not later than November 1, 2009, that detail the allocation of resources and the increased number of volunteers supported by the AmeriCorps programs: Provided further, That the CEO shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this head ing not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is HR 1 PP

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1 2

available for obligation or expenditure.

3

N ATIONAL S ERVICE T RUST

4

(INCLUDING TRANSFER OF FUNDS)

5 6

For an additional amount for ‘‘National Service

7

Trust’’ established under subtitle D of title I of the National

8

and Community Service Act of 1990 (‘‘1990 Act’’),

9

$40,000,000, which shall remain available until expended:

10

Provided, That the Corporation for National and Commu-

11

nity Service may transfer additional funds from the amount 12 13

provided within ‘‘Operating Expenses’’ for grants made

14

under subtitle C of the 1990 Act to this appropriation upon

15

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). S OCIAL S ECURITY A DMINISTRATION LIMITATION ON ADMINISTRATIVE EXPENSES (INCLUDING TRANSFER OF FUNDS)

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2

1 2

istrative Expenses’’, $900,000,000, which shall be used as

3

follows:

4

(1) $400,000,000 for the construction and asso-

5 6

ciated costs to establish a new National Computer

7

Center, which may include lease or purchase of real

8

property: Provided, That the construction plan and site

9

selection for such center shall be subject to review and

10

approval by the Office of Management and Budget:

11

Provided further, That the Committees on 12 13

Appropriations of the House of Representatives and

14

the Senate shall be notified 15 days in advance of the

15

lease or purchase of such site: Provided further, That such center shall continue to be a governmentoperated facility. (2) $500,000,000 for processing disability and retirement

workloads: Provided,

That up

to

$40,000,000 may be used by the Commissioner of Social Security for health information technology research and activities to facilitate the adoption of electronic medical records in disability claims, including the transfer of funds to ‘‘Supplemental Se curity Income Program’’ to carry out activities under

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2

1 2

section 1110 of the Social Security Act.

3

TITLE X—MILITARY CONSTRUC-

4

TIONANDVETERANSAFFAIRS

5

DEPARTMENT OF DEFENSE

6

M ILITARY C ONSTRUCTION , A RMY

7 8 9 10

For an additional amount for ‘‘Military Construction, Army’’, $920,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and

11 12

expended to carry out planning and design and military

13

construction projects in the United States not otherwise

14

authorized by law: Provided further, That of the amount

15

provided under this heading, $600,000,000 shall be for training and recruit troop housing, $220,000,000 shall be for permanent party troop housing, and $100,000,000 shall be for child development centers: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading. M ILITARY C ONSTRUCTION , N AVY AND M ARINE C ORPS For an additional amount for ‘‘Military Construction, Navy and

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2

1 2

Marine Corps’’, $350,000,000: Provided, That

3

notwithstanding any other provision of law, such funds may

4

be obligated and expended to carry out planning and design

5 6

and military construction projects in the United States not

7

otherwise authorized by law: Provided further, That of the

8

amount provided under this heading, $170,000,000 shall be

9

for sailor and marine housing and $180,000,000 shall be for

10

child development centers: Provided further, That not later

11

than 30 days after the date of enactment of this Act, the 12 13

Secretary of Defense shall submit to the Committees on

14

Appropriations of the House of Representatives and the

15

Senate an expenditure plan for funds provided under this heading. M ILITARY C ONSTRUCTION , A IR FORCE For an additional amount for ‘‘Military Construction, Air Force’’, $280,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That of the amount provided under this heading, $200,000,000 shall be for airmen housing and $80,000,000 shall be for child development centers: Provided further, That not later than HR 1 PP

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2

1 2

30 days after the date of enactment of this Act, the Sec-

3

retary of Defense shall submit to the Committees on Ap-

4

propriations of the House of Representatives and the Sen ate

5 6

an expenditure plan for funds provided under this heading.

7

M ILITARY C ONSTRUCTION , D EFENSE-W IDE

8

For an additional amount for ‘‘Military Construction,

9 10 11

Defense-Wide’’, $3,750,000,000, for the construction of hospitals and ambulatory surgery centers: Provided, That notwithstanding any other provision of law, such funds may

12 13

be obligated and expended to carry out planning and design

14

and military construction projects in the United States not

15

otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading. M ILITARY C ONSTRUCTION , A RMY N ATIONAL G UARD For an additional amount for ‘‘Military Construction, Army National Guard’’, $140,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not HR 1 PP

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1

2

2

otherwise authorized by law: Provided further, That not

3

later than 30 days after the date of enactment of this Act,

4

the Secretary of Defense shall submit to the Committees on

5 6

Appropriations of the House of Represent atives and the

7

Senate an expenditure plan for funds provided under this

8

heading.

9 10

M ILITARY C ONSTRUCTION , A IR N ATIONAL G UARD For an additional amount for ‘‘Military Construction, Air National

11

Guard’’, $70,000,000: Provided, That notwithstanding any 12 13

other provision of law, such funds may be obligated and

14

expended to carry out planning and design and military

15

construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading. M ILITARY C ONSTRUCTION , A RMY R ESERVE For an additional amount for ‘‘Military Construction, Army Reserve’’, $100,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design HR 1 PP

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1

2

2

and military construction projects in the United States not

3

otherwise authorized by law: Provided further, That not

4

later than 30 days after the date of enactment of this Act,

5 6

the Secretary of Defense shall submit to the Committees on

7

Appropriations of the House of Representatives and the

8

Senate an expenditure plan for funds provided under this

9

heading.

10 11

M ILITARY C ONSTRUCTION , N AVY R ESERVE For an additional amount for ‘‘Military Construction,

12 13

Navy Reserve’’, $30,000,000: Provided, That notwith-

14

standing any other provision of law, such funds may be

15

obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading. M ILITARY C ONSTRUCTION , A IR FORCE R ESERVE For an additional amount for ‘‘Military Construction, Air Force Reserve’’, $60,000,000: Provided, That notwithstanding any other provision of law, such funds may be HR 1 PP

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1

2

2

obligated and expended to carry out planning and design

3

and military construction projects in the United States not

4

otherwise authorized by law: Provided further, That not

5 6

later than 30 days after the date of enactment of this Act,

7

the Secretary of Defense shall submit to the Committees on

8

Appropriations of the House of Representatives and the

9

Senate an expenditure plan for funds provided under this

10

heading.

11

D EPARTMENT OF D EFENSE B ASE C LOSURE A CCOUNT 12

1990

13 14 15

For an additional amount to be deposited into the Department of Defense Base Closure Account 1990, established by section 2906(a)(1) of the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), $300,000,000: Provided, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading. DEPARTMENT OF VETERANS AFFAIRS V ETERANS H EALTH A DMINISTRATION MEDICAL FACILITIES

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2

1 2

non-recurring maintenance, including energy projects,

3

$950,000,000: Provided, That not later than 30 days after

4

the date of enactment of this Act, the Secretary of Veterans

5 6

Affairs shall submit to the Committees on Appropriations of

7

the House of Representatives and the Senate an expenditure

8

plan for funds provided under this heading.

9

N ATIONAL C EMETERY A DMINISTRATION

10 11

For an additional amount for ‘‘National Cemetery

12

Administration’’ for monument and memorial repairs,

13

$50,000,000: Provided, That not later than 30 days after

14

the date of enactment of this Act, the Secretary of Veterans

15

Affairs shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

TITLE XI—DEPARTMENT OF STATE DEPARTMENT OF STATE A DMINISTRATION OF FOREIGN A FFAIRS CAPITAL INVESTMENT FUND

For an additional amount for ‘‘Capital Investment Fund’’, $276,000,000, of which up to $120,000,000 shall be available for the design and construction of a backup

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2

1 2

information management facility in the United States to

3

support mission-critical operations and projects, and up to

4

$98,527,000 shall be available to carry out the Department

5 6

of State’s responsibilities under the Comprehensive

7

National Cybersecurity Initiative: Provided, That the Sec-

8

retary of State shall submit to the Committees on Appro-

9

priations of the House of Representatives and the Senate

10

within 90 days of enactment of this Act a detailed spending

11

plan for funds appropriated under this heading. 12

INTERNATIONAL C OMMISSIONS INTERNATIONAL

13 14

BOUNDARY AND WATER COMMISSION ,

15

UNITED STATES AND MEXICO CONSTRUCTION (INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Construction’’ for the water quantity program to meet immediate repair and rehabilitation requirements, $224,000,000: Provided, That up to $2,000,000 may be transferred to, and merged with, funds available under the heading ‘‘International Boundary and Water Commission, United States and Mexico— Salaries and Expenses’’, and such amount shall be in lieu of amounts available under section 1106 of this Act: Provided, That the Secretary of State shall submit to the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Committees on Appropriations of the House of Represent-

3

atives and the Senate within 90 days of enactment of this

4

Act a detailed spending plan for funds appropriated under

5 6

this heading.

7 8 9 10 11 12 13 14 15

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2

1 2

TITLEXII—TRANSPORTATION,

3

ANDHOUSINGANDURBAN DEVELOPMENT

4 5

DEPARTMENT OF TRANSPORTATION 6

FEDERAL A VIATION A DMINISTRATION

7

GRANTS-IN -AID FOR AIRPORTS

8 9

For an additional amount for ‘‘Grants-in-Aid for Air-

10

ports’’, to enable the Secretary of Transportation to make

11

grants for discretionary projects as authorized by subchapter

12 13

I of chapter 471 and subchapter I of chapter 475 of title 49,

14

United States Code, $3,000,000,000: Provided, That such

15

funds shall not be subject to apportionment formulas, special apportionment categories, or minimum percentages under chapter 471: Provided further, That the conditions, certifications, and assurances required for grants under subchapter I of chapter 471 of such title apply: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into contracts or other binding commitments to make use of not less than 50 percent of the funds awarded shall be 90 days after award of the grant. FEDERAL H IGHWAY A DMINISTRATION HIGHWAY INFRASTRUCTURE INVESTMENT HR 1 PP

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2

1 2 3 4

For projects and activities eligible under section 133 of title 23, United States Code, section 144 of such title (without regard to subsection (g)), and sections 103, 119,

5 6

134, 148, and 149 of such title, $30,000,000,000, of which

7

$300,000,000 shall be for Indian reservation roads under

8

section 204 of such title; $250,000,000 shall be for park

9

roads and parkways under section 204 of such title;

10

$20,000,000 shall be for highway surface transportation

11

and technology training under section 140(b) of such title; 12 13

and $20,000,000 shall be for disadvantaged business en-

14

terprises bonding assistance under section 332(e) of title

15

49, United States Code: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall not be more than 0.2 percent of the funds made available under this heading instead of the percentage specified in such section: Provided further, That, after making the set-asides authorized by the previous provisos, the funds made available under this heading shall be distributed among the States, and Puerto Rico, American Samoa, Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands, in the same ratio as the obligation limitation for fiscal year 2008 was distributed

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1

2

2

among the States in accordance with the formula specified

3

in section 120(a)(6) of division K of Public Law 110–161,

4

but, in the case of the Puerto Rico Highway Program and

5 6

the Territorial Highway Program, under section 120(a)(5)

7

of such division: Provided further, That 45 percent of the

8

funds distributed to a State under this heading shall be

9

suballocated within the State in the manner and for the

10

purposes described in section 133(d) of title 23, United

11

States Code, (without regard to the comparison to fiscal 12 13

year 2005 in paragraph (2)): Provided further, That in

14

selecting projects to be funded, recipients shall give priority

15

to projects that can award contracts within 90 days of enactment of this Act, are included in an approved Statewide Transportation Improvement Program (STIP) and/or Metropolitan Transportation Improvement Program (TIP), are projected for completion within a three- year time frame, and are located in economically distressed areas as defined by section 301 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. 3161): Provided further, That funds made available under this heading shall be administered as if apportioned under chapter 1 of title 23, United States Code, except for

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2

1 2

funds made available for Indian reservation roads and park

3

roads and parkways which shall be administered in

4

accordance with chapter 2 of title 23, United States Code:

5 6

Provided further, That the Federal share payable on account

7

of any project or activity carried out with funds made

8

available under this heading shall, at the option of the

9

recipient, be up to 100 percent of the total cost thereof:

10

Provided further, That funds made available by this Act

11

shall not be obligated for the purposes authorized under 12 13

section 115(b) of title 23, United States Code: Provided

14

further, That the provisions of section 1101(b) of Public

15

Law 109–59 shall apply to funds made available under this heading: Provided further, That, in lieu of the redistribution required by section 1104(b) of this Act, if less than 50 percent of the funds made available to each State and territory under this heading are obligated within 90 days after the date of distribution of those funds to the States and territories, then the portion of the 50 percent of the total funding distributed to the State or territory that has not been obligated shall be redistributed, in the manner described in section 120(c) of division K of Public Law 110–161, to those States and territories that have obligated at least 50

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2

1 2

percent of the funds made available under this heading and

3

are able to obligate amounts in addition to those previously

4

distributed, except that, for those funds suballocated within

5 6

the State, if less than 50 percent of the funds so

7

suballocated within the State are obligated within 75 days

8

of suballocation, then the portion of the 50 percent of

9

funding so suballocated that has not been obligated will be

10

returned to the State for use anywhere in the State prior to

11

being redistributed in accordance with the first part of this 12 13

proviso: Provided further, That, in lieu of the redistribution

14

required by section 1104(b) of this Act, any funds made

15

available under this heading that are not obligated by August 1, 2010, shall be redistributed, in the manner described in section 120(c) of division K of Public Law 110–161, to those States able to obligate amounts in addition to those previously distributed, except that funds suballocated within the State that are not obligated by June 1, 2010, will be returned to the State for use anywhere in the State prior to being redistributed in accordance with the first part of this proviso: Provided further, That notwithstanding section 1103 of this Act, funds made available under this heading shall be apportioned not later

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2

1 2

than 7 days after the date of enactment of this Act.

3

FEDERAL R AILROAD A DMINISTRATION

4

CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL

5 SERVICE

6 7 8 9 10 11

For an additional amount for ‘‘Capital Assistance for Intercity Passenger Rail Service’’ to enable the Secretary of Transportation to make grants for capital costs as authorized by chapter 244 of title 49 United States Code, $300,000,000: Provided, That notwithstanding section

12

1103 of this Act, the Secretary shall give preference to 13 14 15

projects for the repair, rehabilitation, upgrade, or purchase of railroad assets or infrastructure that can be awarded within 90 days of enactment of this Act: Provided further, That in awarding grants for the acquisition of a piece of rolling stock or locomotive, the Secretary shall give preference to FRA-compliant rolling stock and locomotives: Provided further, That the Secretary shall give preference to projects that support the development of intercity high speed rail service: Provided further, That the Federal share shall be, at the option of the recipient, up to 100 percent. CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

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2

1 2

Service Grants to the National Railroad Passenger Cor-

3

poration’’ (Amtrak) to enable the Secretary of Transpor-

4

tation to make capital grants to Amtrak as authorized by

5 6

section 101(c) of the Passenger Rail Investment and Im-

7

provement

8

110–432), $800,000,000: Provided, That priority shall be

9

given to projects for the repair, rehabilitation, or upgrade of

10

Act

of

2008 (Public

Law

railroad assets or infrastructure: Provided further, That none

11

of the funds under this heading shall be used to subsidize 12 13

the operating losses of Amtrak: Provided further, Notwith-

14

standing section 1103 of this Act, funds made available

15

under this heading shall be awarded not later than 7 days after the date of enactment of this Act. FEDERAL T RANSIT A DMINISTRATION TRANSIT CAPITAL ASSISTANCE

For transit capital assistance grants, $6,000,000,000 (increased by $1,500,000,000), of which $5,400,000,000 (increased by $1,350,000,000) shall be for grants under section 5307 of title 49, United States Code and shall be apportioned in accordance with section 5336 of such title (other than subsections (i)(1) and (j)) but may not be combined or commingled with any other funds apportioned

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1

2

2

under such section 5336, and of which $600,000,000 (in-

3

creased by $150,000,000) shall be for grants under section

4

5311 of such title and shall be apportioned in accordance

5 6

with such section 5311 but may not be combined or

7

commingled with any other funds apportioned under that

8

section: Provided, That of the funds provided for section

9

5311 under this heading, 3 percent shall be made available

10

for section 5311(c)(1): Provided further, That applicable

11

chapter 53 requirements shall apply except that the Federal 12 13

share of the costs for which a grant is made under this

14

heading shall be, at the option of the recipient, up to 100

15

percent: Provided further, In lieu of the requirements of section 1103 of this Act, funds made available under this heading shall be apportioned not later than 7 days after the date of enactment of this Act: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into obligations to make use of not less than 50 percent of the funds awarded shall be 90 days after apportionment: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That notwithstanding

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2

1 2

any other provision of law, of the funds apportioned in

3

accordance with section 5336, up to three- quarters of 1

4

percent shall be available for administrative expenses and

5 6

program management oversight and of the funds

7

apportioned in accordance with section 5311, up to

8

one-half of 1 percent shall be available for administrative

9

expenses and program management oversight and both

10

amounts shall remain available for obligation until Sep-

11

tember 30, 2012: Provided further, That the preceding 12 13 14

proviso shall apply in lieu of the provisions in section 1106 of this Act.

15

FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT

For an amount for capital expenditures authorized under section 5309(b)(2) of title 49, United States Code, $2,000,000,000: Provided, That the Secretary of Transportation shall apportion funds under this heading pursuant to the formula set forth in section 5337 of title 49, United States Code: Provided further, That the funds appropriated under this heading shall not be commingled with funds available under the Formula and Bus Grants account: Provided further, In lieu of the requirements of section 1103 of this Act, funds made available under this heading shall be apportioned not later than 7 days after the date of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

enactment of this Act: Provided further, That for purposes

3

of applying section 1104 of this Act to this appropriation,

4

the deadline for grantees to enter into obligations to make

5 6

use of not less than 50 percent of the funds awarded shall

7

be 90 days after apportionment: Provided further, That

8

applicable chapter 53 requirements shall apply except that

9

the Federal share of the costs for which a grant is made

10

under this heading shall be, at the option of the recipient, up

11

to 100 percent: Provided further, That the provisions of 12 13

section 1101(b) of Public Law 109–59 shall apply to funds

14

made available under this heading: Provided further, That

15

notwithstanding any other provision of law, up to 1 percent of the funds under this heading shall be available for administrative expenses and program management oversight and shall remain available for obligation until September 30, 2012: Provided further, That the preceding proviso shall apply in lieu of the provisions in section 1106 of this Act. CAPITAL INVESTMENT GRANTS

For an additional amount for ‘‘Capital Investment Grants’’, as authorized under section 5338(c)(4) of title 49, United States Code, and allocated under section 5309(m)(2)(A) of such title, to enable the Secretary of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Transportation to make discretionary grants as authorized

3

by section 5309(d) and (e) of such title, $1,000,000,000

4

(increased by $1,500,000,000): Provided, That such

5 6

amount shall be allocated without regard to the limitation

7

under section 5309(m)(2)(A)(i): Provided further, That in

8

selecting projects to be funded, priority shall be given to

9

projects that are currently in construction or are able to

10

award contracts based on bids within 90 days of enactment

11

of this Act: Provided further, That for purposes of applying 12 13

section 1104 of this Act to this appropriation, the deadline

14

for grantees to enter into contracts or other binding

15

commitments to make use of not less than 50 percent of the funds awarded shall be 90 days after award: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That applicable chapter 53 requirements shall apply, except that notwithstanding any other provision of law, up to 1 percent of the funds under this heading shall be available for administrative expenses and program management oversight and shall remain available for obligation until September 30, 2012: Provided further, That the preceding proviso shall apply in lieu of the

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2

1 2

provisions in section 1106 of this Act.

3

DEPARTMENT OF HOUSING AND URBAN

4

DEVELOPMENT P UBLIC AND INDIAN H OUSING

5 6 7 8

PUBLIC HOUSING CAPITAL FUND

For an additional amount for ‘‘Public Housing Capital Fund’’ to carry out capital and management activities for

9 10 11

public housing agencies, as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g)

12

(‘‘the Act’’), $5,000,000,000: Provided, That the Secretary

13

of Housing and Urban Development shall distribute at least

14

$4,000,000,000 of this amount by the same formula used

15

for amounts made available in fiscal year 2008: Provided further, That public housing authorities shall give priority to capital projects that can award contracts based on bids within 120 days from the date the funds are made available to the public housing authorities: Provided further, That public housing agencies shall give priority consideration to the rehabilitation of vacant rental units: Provided further, That notwithstanding any other provision of the Act or regulations: (1) funding provided herein may not be used for Operating Fund activities pursuant to section 9(g) of the Act; and (2) any restriction of funding to replacement

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1

2

2

housing uses shall be inapplicable: Provided further, That

3

public housing agencies shall prioritize capital projects

4

underway or al ready in their 5-year plans: Provided

5 6

further, That of the amount provided under this heading,

7

the Secretary may obligate up to $1,000,000,000, for

8

competitive grants to public housing authorities for

9

activities including: (1) investments that leverage private

10

sector funding or financing for housing renovations and

11

energy conservation retrofit investments; (2) rehabilitation 12 13

of units using sustainable materials and methods that

14

improve energy efficiency, reduce energy costs, or preserve

15

and improve units with good access to public transportation or employment centers; (3) increase the availability of affordable rental housing by expediting rehabilitation projects to bring vacant units into use or by filling the capital investment gap for redevelopment or replacement housing projects which have been approved or are otherwise ready to proceed but are stalled due to the inability to obtain anticipated private capital; or (4) address the needs of seniors and persons with disabilities through improvements to housing and related facilities which attract or promote the coordinated delivery of supportive services:

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1

2

2

Provided further, That the Secretary may waive statutory

3

or regulatory provisions related to the obligation and

4

expenditure of capital funds if necessary to facilitate the

5 6

timely expenditure of funds (except for requirements

7

related to fair housing, nondiscrimination, labor standards,

8

and the environment).

9 10

ELDERLY , DISABLED , AND SECTION 8 ASSISTED HOUSING ENERGY RETROFIT

11 12

For grants or loans to owners of properties receiving

13

project-based assistance pursuant to section 202 of the

14

Housing Act of 1959 (12 U.S.C. 17012), section 811 of the

15

Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), to accomplish energy retrofit investments, $2,500,000,000: Provided, That such loans or grants shall be provided through the Office of Affordable Housing Preservation of the Department of Housing and Urban Development, on such terms and conditions as the Secretary of Housing and Urban Development deems appropriate: Provided further, That eligible owners must have at least a satisfactory management review rating, be in substantial compliance with applicable performance

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2

1 2

standards and legal requirements, and commit to an

3

additional period of affordability determined by the

4

Secretary: Provided further, That the Secretary shall

5 6

undertake appropriate underwriting and oversight with re-

7

spect to such transactions: Provided further, That the Sec-

8

retary may set aside funds made available under this

9

heading for an efficiency incentive payable upon satisfac-

10

tory completion of energy retrofit investments, and may

11

provide additional incentives if such investments resulted in 12 13

extraordinary job creation for low-income and very low-

14

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

15

vided under this heading, 1 percent shall be available only for staffing, training, technical assistance, technology, monitoring, research and evaluation activities. NATIVE AMERICAN HOUSING BLOCK GRANTS

For an additional amount for ‘‘Native American Housing Block Grants’’, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et seq.), $500,000,000: Provided, That $250,000,000 of the amount appropriated under this heading shall be distributed according to the same funding formula used in fiscal year 2008: Provided further, That in selecting projects to be HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

funded, recipients shall give priority to projects that can

3

award contracts based on bids within 120 days from the

4

date that funds are available to the recipients: Provided

5 6

further, That in allocating the funds appropriated under this

7

heading, the Secretary of Housing and Urban Development

8

shall not require an additional action plan from grantees:

9

Provided further, That the Secretary may obligate

10

$250,000,000 of the amount appropriated under this

11

heading for competitive grants to eligible entities that apply 12 13

for funds as authorized under NAHASDA: Provided

14

further, That in awarding competitive funds, the Secretary

15

shall give priority to projects that will spur construction and rehabilitation and will create employment opportunities for low-income and unemployed persons. C OMMUNITY P LANNING AND D EVELOPMENT COMMUNITY DEVELOPMENT FUND

For an additional amount for ‘‘Community Development Fund’’ $1,000,000,000, to carry out the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.): Provided, That the amount appropriated in this paragraph shall be distributed according to the same funding formula used in fiscal year 2008: Provided HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

further, That in allocating the funds appropriated in this

3

paragraph, the Secretary of Housing and Urban

4

Development shall not require an additional action plan

5 6

from grantees: Provided further, That in selecting projects

7

to be funded, recipients shall give priority to projects that

8

can award contracts based on bids within 120 days from

9

the date the funds are made available to the recipients;

10

Provided further, That in administering funds provided in

11

this paragraph, the Secretary may waive any provision of 12 13

any statute or regulation that the Secretary administers in

14

connection with the obligation by the Secretary or the use

15

by the recipient of these funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding that such waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of the statute. For a further additional amount for ‘‘Community Development Fund’’, $4,190,000,000, to be used for neighborhood stabilization activities related to emergency assistance for the redevelopment of abandoned and foreclosed homes as authorized under division B, title III of the Housing and Economic Recovery Act of 2008 (Public Law

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1 2

110–289), of which—

3 4

(1) not less than $3,440,000,000 shall be allocated by a competition for which eligible entities shall be

5 6

States, units of general local government, and

7

nonprofit entities or consortia of nonprofit entities:

8

Provided, That the award criteria for such competition

9

shall include grantee capacity, leveraging potential,

10

targeted impact of foreclosure prevention, and any

11

additional factors determined by the Secretary of 12 13

Housing and Urban Development: Provided further,

14

that the Secretary may establish a minimum grant size:

15

Provided further, That amounts made available under this Section may be used to: (A) establish financing mechanisms for purchase and redevelopment of foreclosed-upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers; (B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell or rent such homes and properties; (C) establish and operate land banks for homes that have been

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1 2

foreclosed upon; (D) demolish foreclosed properties

3

that have become blighted structures; and

4

(E) redevelop demolished or vacant foreclosed prop-

5 6

erties in order to sell or rent such properties; and (2) up to $750,000,000 shall be awarded by

7 8

competition to nonprofit entities or consortia of non-

9

profit entities to provide community stabilization as-

10

sistance by: (A) accelerating state and local govern-

11

ment and nonprofit productivity; (B) increasing the 12 13

scale and efficiency of property transfers of foreclosed

14

and vacant residential properties from financial

15

institutions and government entities to qualified local housing providers in order to return the properties to productive affordable housing use; (C) building industry and property management capacity; and (D) partnering with private sector real estate developers and contractors and leveraging private sector capital: Provided further, That such com munity stabilization assistance shall be provided primarily in States and areas with high rates of defaults and foreclosures to support the acquisition, rehabilitation and property management of single-family and multi-family homes

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1 2

and to work in partnership with the private sector real

3

estate industry and to leverage available private and

4

public funds for those purposes: Provided further,

5 6

That for purposes of this paragraph qualified local

7

housing providers shall be nonprofit organizations with

8

demonstrated capabilities in real estate development or

9

acquisition and rehabilitation or property management

10

of single- or multi-family homes, or local or state

11

governments or instrumentalities of such governments: 12 13

Provided further, That qualified local housing

14

providers shall be expected to utilize and leverage

15

additional local nonprofit, governmental, for-profit and private resources: Provided further, That in the case of any foreclosure on any dwelling or residential real property acquired with any amounts made available under this heading, any successor in interest in such property pursuant to the foreclosure shall assume such interest subject to: (1) the provision by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and (2) the rights of any bona fide tenant, as of the date of such notice of foreclosure: (A) under any bona fide

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1 2

lease entered into before the notice of foreclosure to occupy

3

the premises until the end of the remaining term of the lease,

4

except that a successor in interest may terminate a lease

5 6

effective on the date of sale of the unit to a purchaser who

7

will occupy the unit as a primary residence, subject to the

8

receipt by the tenant of the 90-day

9

paragraph; or (B) without a lease or with a lease terminable

10

notice under this

at will under State law, subject to the receipt by the tenant of

11

the 90-day notice under this paragraph, except that nothing in 12 13

this paragraph shall affect the requirements for termination of

14

any Federal- or State- subsidized tenancy or of any State or

15

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 armslength transaction; and (3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property: Provided further, That the recipient of any grant or loan from amounts made available under this heading may not refuse to lease a dwelling unit in housing assisted with such loan or grant to a hold

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1 2

er of a voucher or certificate of eligibility under section 8 of

3

the United States Housing Act of 1937 (42 U.S.C. 1437f)

4

because of the status of the prospective tenant as such a

5 6

holder: Provided further, That in the case of any qualified

7

foreclosed housing for which funds made available under

8

this heading are used and in which a recipient of assistance

9

under section 8(o) of the U.S. Housing Act of 1937 resides

10

at the time of acquisition or financing, the owner and any

11

successor in interest shall be subject to the lease and to the 12 13

housing assistance payments contract for the occupied unit:

14

Provided further, That vacating the property prior to sale

15

shall not constitute good cause for termination of the tenancy unless the property is unmarketable while occupied or unless the owner or subsequent purchaser desires the unit for personal or family use: Provided further, That this paragraph shall not preempt any State or local law that provides more protection for tenants: Provided further, That amounts made available under this heading may be used for the costs of demolishing foreclosed housing that is deteriorated or unsafe: Provided further, That the amount for demolition of such housing may not exceed 10 percent of amounts allocated under this paragraph to States and

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1 2

units of general local government: Provided further, That no

3

amounts from a grant made under this paragraph may be

4

used to demolish any public housing (as such term is

5 6

defined in section 3 of the United States Housing Act of

7

1937 (42 U.S.C. 1437a)): Provided further, That section

8

2301(d)(4) of the Housing and Economic Recovery Act of

9

2008 (Public Law 110–289) is repealed.

10 11

HOME INVESTMENT PARTNERSHIPS PROGRAM

For an additional amount for ‘‘HOME Investment

12 13

Partnerships Program’’ as authorized under Title II of the

14

Cranston-Gonzalez National Affordable Housing Act (‘‘the

15

Act’’), $1,500,000,000: Provided, That the amount appropriated under this heading shall be distributed according to the same funding formula used in fiscal year 2008: Provided further, That the Secretary of Housing and Urban Development may waive statutory or regulatory provisions related to the obligation of such funds if necessary to facilitate the timely expenditure of funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment): Provided further, That in selecting projects to be funded, recipients shall give priority to projects that can award contracts based on bids within 120 days from the date that funds are available to the HR 1 PP

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recipients.

3 SELF-HELP AND ASSISTED HOMEOWNERSHIP

4

OPPORTUNITY PROGRAM

5 6 7 8

For an additional amount for ‘‘Self-Help and Assisted Homeownership Opportunity Program’’, as authorized under section 11 of the Housing Opportunity Program

9

Extension Act of 1996, $10,000,000: Provided, That in 10 11

awarding competitive grant funds, the Secretary of Housing

12

and Urban Development shall give priority to the provision

13

and rehabilitation of sustainable, affordable single and

14

multifamily units in low-income, high-need rural areas:

15

Provided further, That in selecting projects to be funded, grantees shall give priority to projects that can award contracts based on bids within 120 days from the date the funds are made available to the grantee. HOMELESS ASSISTANCE GRANTS

For an additional amount for ‘‘Homeless Assistance Grants’’, for the emergency shelter grants program as authorized under subtitle B of tile IV of the McKinney-Vento Homeless Assistance Act, $1,500,000,000: Provided, That in addition to homeless prevention activities specified in the emergency shelter grant program, funds provided under this

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1 2

heading may be used for the provision of short- term or

3

medium-term rental assistance; housing relocation and

4

stabilization services including housing search, mediation or

5 6

outreach to property owners, legal services, credit repair,

7

resolution of security or utility deposits, utility payments,

8

rental assistance for a final month at a location, and moving

9

costs assistance; or other appropriate homelessness

10

prevention activities; Provided further, That these funds

11

shall be allocated pursuant to the formula authorized by 12 13

section 413 of such Act: Provided further, That the

14

Secretary of Housing and Urban Development may waive

15

statutory or regulatory provisions related to the obligation and use of emergency shelter grant funds necessary to facilitate the timely expenditure of funds. O FFICE OF H EALTHY H OMES AND LEAD H AZARD C ONTROL LEAD HAZARD REDUCTION

For an additional amount for ‘‘Lead Hazard Reduction’’, for the Lead Hazard Reduction Program as authorized by section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, $100,000,000: Provided, That for purposes of environmental review, pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that further the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

purposes of such Act, a grant under the Healthy Homes

3

Initiative, Operation Lead Elimination Action Plan (LEAP),

4

or the Lead Technical Studies program under this heading or

5 6

under prior appropriations Acts for such purposes under this

7

heading, shall be considered to be funds for a special project

8

for purposes of section 305(e) of the Multifamily Housing

9

Property Disposition Reform Act of 1994: Provided further,

10

That of the total amount made available under this heading,

11

$30,000,000 shall be made available on a competitive basis 12 13

for areas with the highest lead paint abatement needs. GENERAL PROVISIONS, THIS TITLE

14 15

SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING REQUIREMENTS TO ENSURE TRANSPARENCY AND ACCOUNTABILITY.

(a) M AINTENANCE OF E FFORT.—Not later than 30 days after the date of enactment of this Act, for each amount that is distributed to a State or agency thereof from an appropriation in this Act for a covered program, the Governor of the State shall certify that the State will maintain its effort with regard to State funding for the types of projects that are funded by the appropriation. As part of this certification, the Governor shall submit to the covered agency a statement identifying the amount of funds the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

State planned to expend as of October 1, 2008, from

3

non-Federal sources in the period beginning on the date of

4

enactment of this Act through September 30, 2010, for the

5 6 7

types of projects that are funded by the appropriation. (b) FAILURE TO M AINTAIN E FFORT.—If a Governor is

8

unable to certify that Federal funds will not supplant 9 10

non-Federal funds pursuant to subsection (a), then the

11

Federal funds apportioned to that State under this Act that

12

will supplant non-Federal funds will be recaptured by the

13

appropriate Federal agency and redistributed to States or

14

agencies that can spend the Federal funds without

15

supplanting non-Federal funds. (c) P ERIODIC R EPORTS.— (1) IN

GENERAL.—Notwithstanding

any other

provision of law, each grant recipient shall submit to the covered agency from which they received funding periodic reports on the use of the funds appropriated in this Act for covered programs. Such reports shall be collected and compiled by the covered agency and transmitted to Congress. (2) C ONTENTS OF REPORTS.—For amounts received under each covered program by a grant recipient under HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

this Act, the grant recipient shall include in the periodic

3

reports information tracking—

4

(A) the amount of Federal funds appro-

5

priated, allocated, obligated, and outlayed under

6

the appropriation;

7

(B) the number of projects that have been

8 9

put out to bid under the appropriation and the

10

amount of Federal funds associated with such

11

projects; 12

(C) the number of projects for which contracts

13 14

have been awarded under the appropriation and the

15

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 amount of Federal funds associated with

the such

contracts; (F) the number of jobs created or sustained by the Federal funds provided for projects under

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1 2

the appropriation, including information on job

3

sectors and pay levels; and

4

(G) for each covered program report infor-

5

mation tracking the actual aggregate expenditures

6 7

by each grant recipient from non-Federal sources

8

for projects eligible for funding under the

9

program during the period beginning on the date

10

of enactment of this Act through September 30,

11

2010, as compared to the level of such 12

expenditures that were planned to occur during

13 14

such period as of the date of enactment of this

15

Act. (3) T IMING OF REPORTS.—Each grant recipient shall submit the first of the periodic reports required under this subsection not later than 30 days after the date of enactment of this Act and shall submit updated reports not later than 60 days, 120 days, 180 days, 1 year, and 3 years after such date of enactment. (d) D EFINITIONS.—In this section, the following definitions apply: (1) C OVERED AGENCY .—The term ‘‘covered agency’’ means the Federal Aviation Administration,

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the Federal Highway Administration, the Federal

3

Railroad Administration, and the Federal Transit

4

Administration of the Department of Transportation.

5

(2) C OVERED PROGRAM .—The term ‘‘covered

6 7

program’’ means funds appropriated in this Act for

8

‘‘Grants-in-Aid for Airports’’ to the Federal Aviation

9

Administration; for ‘‘Highway Infrastructure Invest-

10

ment’’ to the Federal Highway Administration; for

11

‘‘Capital Assistance for Intercity Passenger Rail 12 13

Service’’ to the Federal Railroad Administration; for

14

‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In-

15

frastructure Investment’’, and ‘‘Capital Investment Grants’’ to the Federal Transit Administration. (3) G RANT RECIPIENT.—The term ‘‘grant recipient’’ means a State or other recipient of assistance provided under a covered program in this Act. Such term does not include a Federal department or agency. SEC. 12002. FHA LOAN LIMITS FOR 2009.

(a) LOAN LIMIT FLOOR B ASED 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Act (12 U.S.C. 1709(b)(2)) for any size residence for any

3

area is less than such dollar amount limitation that was in

4

effect for such size residence for such area for 2008

5 6

pursuant to section 202 of the Economic Stimulus Act of

7

2008 (Public Law 110–185; 122 Stat. 620),

8

notwithstanding any other provision of law, the maximum

9

dollar amount limitation on the principal obligation of a

10

mortgage for such size residence for such area for purposes

11

of such section 203(b)(2) shall be considered (except for 12 13

purposes of section 255(g) of such Act (12 U.S.C.

14

1715z–20(g))) to be such dollar amount limitation in effect

15

for such size residence for such area for 2008. (b) D ISCRETIONARY A UTHORITY FOR S UB-A REAS.— 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

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which the mortgagee issues credit approval for the

3

borrower during calendar year 2009, increase the maximum

4

dollar amount limitation for such size or sizes of residences

5 6

for such sub-area that is otherwise in effect (including

7

pursuant to subsection (a) of this section), but in no case to

8

an amount that exceeds the amount specified in section

9

202(a)(2) of the Economic Stimulus Act of 2008.

10 11

SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009.

(a) LOAN LIMIT FLOOR B ASED ON 2008 LEVELS.— For

12 13

mortgages originated during calendar year 2009, if the

14

limitation on the maximum original principal obligation of a

15

mortgage that may purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation determined under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size residence for any area is less than such maximum original principal obligation limitation that was in effect for such size residence for such area for 2008 pursuant to section 201 of the Economic Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 619), notwithstanding any other provision of law, the limitation HR 1 PP

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on the maximum original principal obligation of a mortgage

3

for such Association and Corporation for such size

4

residence for such area shall be such maximum limitation in

5 6 7

effect for such size residence for such area for 2008. (b) D ISCRETIONARY A UTHORITY FOR S UB-A REAS.—

8

Notwithstanding any other provision of law, if the Director

9

of the Federal Housing Finance Agency determines, for any

10

geographic area that is smaller than an area for which

11

limitations on the maximum original principal obligation of a 12 13

mortgage are determined for the Federal National Mortgage

14

Association or the Federal Home Loan Mortgage

15

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

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1 2 3

Economic Stimulus Act of 2008. SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR

4 5

2009.

For mortgages for which the mortgagee issues credit

6 7 8

approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing

9

Act (12 U.S.C. 171520(g)) shall be considered to require

10

that in no case may the benefits of insurance under such

11

section 255 exceed 150 percent of the maximum dollar

12

amount in effect under the sixth sentence of section 13 14 15

305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

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TITLE XIII—STATE FISCAL

3

STABILIZATION FUND

4

DEPARTMENT OF EDUCATION

5

S TATE FISCAL S TABILIZATION FUND

6

For necessary expenses for a State Fiscal Stabilization

7 8

Fund, $79,000,000,000, which shall be administered by

9

the

10

Department of

Education,

of

which

$39,500,000,000 shall become available on July 1, 2009,

11 12

and remain available through September 30, 2010, and

13

$39,500,000,000 shall become available on July 1, 2010,

14

and remain available through September 30, 2011: Pro-

15

vided, That the provisions of section 1103 of this Act shall not apply to the funds reserved under section 13001(c) of this title: Provided further, That the amount made available under section 13001(b) of this title for administration and oversight shall take the place of the set-aside under section 1106 of this Act. GENERAL PROVISIONS, THIS TITLE SEC. 13001. ALLOCATIONS.

(a) O UTLYING A REAS.—From each year’s appropriation to carry out this title, the Secretary of Education shall first allocate one half of 1 percent to the outlying areas on the basis of their respective needs, as determined by the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

Secretary, for activities consistent with this title under such

3

terms and conditions as the Secretary may determine.

4

(b) A DMINISTRATION AND O VERSIGHT.—The Secretary

5 6

may, in addition, reserve up to $12,500,000 each year for

7

administration and oversight of this title, including for

8

program evaluation.

9 10

(c) R ESERVATION FOR A DDITIONAL P ROGRAMS.— After reserving funds under subsections (a) and (b), the Secretary

11

shall reserve $7,500,000,000 each year for

grants under

12 13 14 15

sections 13006 and 13007. (d) S TATE A LLOCATIONS.—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) S TATE G RANTS.—From funds allocated under subsection (d), the Secretary shall make grants to the Governor of each State. (f) R EALLOCATION .—The Governor shall return to the

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Secretary any funds received under subsection (e) that the

3

Governor does not obligate within one year of receiving

4

a grant, and the Secretary shall reallocate such funds to the

5 6 7 8

remaining States in accordance with subsection (d). SEC. 13002. STATE USES OF FUNDS.

(a) E DUCATION FUND .—

9

(1) IN GENERAL.—For each fiscal year, the

10

Governor shall use at least 61 percent of the State’s

11

allocation under section 13001 for the support of el-

12 13

ementary, secondary, and postsecondary education. (2) R ESTORING 2008 STATE SUPPORT FOR EDU-

14 15

CATION .—

(A) IN GENERAL.—The Governor shall first use the funds described in paragraph (1)— (i) to provide the amount of funds, through the State’s principal elementary and secondary funding formula, that is needed to restore State support for elementary and secondary education to the fiscal year 2008 level; and (ii) to provide the amount of funds to public institutions of higher education in the State that is needed to restore State support HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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for postsecondary education to the fiscal year

3

2008 level.

4

(B) S HORTFALL.—If the Governor determines

5

that the amount of funds available under

6 7

paragraph (1) is insufficient to restore State

8

support for education to the levels described in

9

clauses (i) and (ii) of subparagraph (A), the

10

Governor shall allocate those funds between

11

those clauses in proportion to the relative shortfall 12

in State support for the education sectors

13 14

described in those clauses.

15

(3) S UBGRANTS 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) O THER G OVERNMENT S ERVICES.—For each fiscal year, the Governor may use up to 39 percent of the State’s

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1

2

2

allocation under section 1301 for public safety and other

3

government services, which may include assistance for

4

elementary and secondary education and public institutions

5 6 7

of higher education. SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

8 9

(a) IN G ENERAL.—A local educational agency that

10

receives funds under this title may use the funds for any

11

activity authorized by the Elementary and Secondary Edu-

12

cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 13 14 15

the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (‘‘the Perkins Act’’). (b) P ROHIBITION .—A local educational agency may not use funds received under this title for capital projects unless authorized by ESEA, IDEA, or the Perkins Act. SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

(a) IN G ENERAL.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2 3 4

students. (b) PROHIBITION .—An institution of higher education may not use funds received under this title to increase its

5 6

endowment.

7

(c) A DDITIONAL P ROHIBITION .—An institution of higher

8

education may not use funds received under this title for

9

construction, renovation, or facility repair.

10 11

SEC. 13005. STATE APPLICATIONS.

(a) IN G ENERAL.—The Governor of a State desiring to

12 13

receive an allocation under section 13001 shall submit an

14

annual application at such time, in such manner, and

15

containing such information as the Secretary may reasonably require. (b) FIRST Y EAR A PPLICATION .—In the first of such applications, the Governor shall— (1) include the assurances described in subsection (e); (2) provide baseline data that demonstrates the State’s current status in each of the areas described in such assurances; and (3) describe how the State intends to use its allocation. (c) S ECOND Y EAR A PPLICATION .—In the second year HR 1 PP

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2

1 2

application, the Governor shall—

3 4

(1) include the assurances described in subsection (e); and

5

(2) describe how the State intends to use its al-

6 7

location.

8

(d) INCENTIVE G RANT A PPLICATION .—The Governor of

9

a State seeking a grant under section 13006 shall—

10

(1) submit an application for consideration;

11

(2) describe the status of the State’s progress in

12 13

each of the areas described in subsection (e), and the

14

strategies the State is employing to help ensure that

15

high-need students in the State continue making progress towards meeting the State’s student academic achievement standards; (3) describe how the State would use its grant funding, including how it will allocate the funds to give priority to high-need schools and local educational agencies; and (4) include a plan for evaluating its progress in closing achievement gaps. (e) A SSURANCES.—An application under subsection (b) or (c) shall include the following assurances: (1) M AINTENANCE OF EFFORT.— HR 1 PP

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2

1

(A) E LEMENTARY AND SECONDARY EDU-

2 3

CATION .—The

4

State will, in each of fiscal years

2009 and 2010, maintain State support for ele-

5

mentary and secondary education at least at the

6

level of such support in fiscal year 2006.

7

(B) H IGHER

8 9

EDUCATION .—The

State will, in

each of fiscal years 2009 and 2010, maintain State

10

support for public institutions of higher education

11

(not including support for capital projects or for 12

research and development) at least at the level of

13 14

such support in fiscal year 2006.

15

(2) A CHIEVING EQUITY IN TEACHER DISTRIBUTION .—The

section

State will take actions to comply with 1111(b)(8)(C)

of

ESEA

U.S.C. 6311(b)(8)(C)) in order to address inequities in the distribution of teachers between high-and low-poverty schools, and to ensure that low-income and minority children are not taught at higher rates than other children by inexperienced, unqualified, or out- of-field teachers. (3) IMPROVING COLLECTION AND USE OF DATA.—The

State will establish a longitudinal data

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(20

2

1 2

system that includes the elements described in section

3

6401(e)(2)(D) of the America COMPETES Act (20

4

U.S.C. 9871).

5

(4) A SSESSMENTS.—The State—

6

(A) will enhance the quality of academic

7 8

assessments described in section 1111(b)(3) of

9

ESEA (20 U.S.C. 6311(b)(3)) through activities

10

such as those described in section 6112(a) of such

11

Act (20 U.S.C. 7301a(a)); and

12

(B) will comply with the requirements of

13 14

paragraphs 3(C)(ix) and (6) of section 1111(b) of

15

ESEA (20 U.S.C. 6311(b)) and section 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) related to the inclusion of children with disabil ities and limited English proficient students in State assessments, the development of valid and reliable assessments for those

students,

and

the

provision

of

accommodations that enable their participation in State assessments. SEC. 13006. STATE INCENTIVE GRANTS.

(a) IN G ENERAL.—From the total amount reserved under section 13001(c) that is not used for section 13007, the Secretary shall, in fiscal year 2010, make grants to States that HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

have made significant progress in meeting the objectives of

3

paragraphs (2), (3), and (4) of section 13005(e).

4

(b) B ASIS FOR G RANTS.—The Secretary shall determine

5 6

which States receive grants under this section, and the

7

amount of those grants, on the basis of information

8

provided in State applications under section 13005 and

9

such other criteria as the Secretary determines appropriate.

10

(c) S UBGRANTS TO LOCAL E DUCATIONAL A GEN -

11 CIES.—Each

State receiving a grant under this section shall

12 13

use at least 50 percent of the grant to provide local

14

educational agencies in the State with subgrants based on

15

their relative shares of funding under part A of title I of ESEA (20 U.S.C. 6311 et seq.) for the most recent year. SEC. 13007. INNOVATION FUND.

(a) IN G ENERAL.— (1) P ROGRAM ESTABLISHED .—From the total amount reserved under section 13001(c), the Secretary may reserve up to $325,000,000 each year to establish an Innovation Fund, which shall consist of academic achievement awards that recognize States, local educational agencies, or schools that meet the requirements described in subsection (b). (2) B ASIS FOR AWARDS.—The Secretary shall HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

make awards to States, local educational agencies, or

3

schools that have made significant gains in closing the

4

achievement gap as described in subsection (b)(1)—

5

(A) to allow such States, local educational

6 7

agencies, and schools to expand their work and

8

serve as models for best practices;

9

(B) to allow such States, local educational

10

agencies, and schools to work in partnership with

11

the private sector and the philanthropic community; 12

and

13 14

(C) to identify and document best practices

15

that can be shared, and taken to scale based on demonstrated success. (b) E LIGIBILITY .—To be eligible for such an award, (1) State, local educational agency, or school shall— (1) have significantly closed the achievement gaps between groups of students described in section 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); (2) have exceeded the State’s annual measurable objectives

consistent

with such section

1111(b)(2) for 2 or more consecutive years or have demonstrated success in significantly increasing student academic achievement for all groups of students HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

described in such section through another measure,

3

such as measures described in section 1111(c)(2) of

4

ESEA;

5

(3) have made significant improvement in other

6 7

areas, such as graduation rates or increased recruitment

8

and placement of high-quality teachers and school

9

leaders, as demonstrated with meaningful data; and

10

(4) demonstrate that they have established

11

partnerships with the private sector, which may include 12 13

philanthropic organizations, and that the private sector

14

will provide matching funds in order to help bring

15

results to scale. SEC. 13008. STATE REPORTS.

For each year of the program under this title, a State receiving funds under this title shall submit a report to the Secretary, at such time and in such manner as the Secretary may require, that describes— (1) the uses of funds provided under this title within the State; (2) how the State distributed the funds it received under this title; (3) the number of jobs that the Governor estimates were saved or created with funds the State received under HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

this title;

3 4

(4) tax increases that the Governor estimates were averted because of the availability of funds from this

5 6

title; (5) the State’s progress in reducing inequities in

7 8

the distribution of teachers, in implementing a State

9

student longitudinal data system, and in developing and

10

implementing valid and reliable assessments for limited

11

English proficient students and children with 12 13

disabilities;

14

(6) the tuition and fee increases for in-State

15

students imposed by public institutions of higher education in the State during the period of availability of funds under this title, and a description of any actions taken by the State to limit those increases; and (7) the extent to which public institutions of higher education

maintained,

increased,

or

decreased

enrollment of in-State students, including students eligible for Pell Grants or other need-based financial assistance. SEC. 13009. EVALUATION.

The Comptroller General of the United States shall conduct evaluations of the programs under sections 13006 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and 13007 which shall include, but not be limited to, the

3

criteria used for the awards made, the States selected for

4

awards, award amounts, how each State used the award

5 6 7 8 9 10 11

received, and the impact of this funding on the progress made toward closing achievement gaps. SEC. 13010. SECRETARY’S REPORT TO CONGRESS.

The Secretary shall submit a report to the Committee on Education and Labor of the House of Representatives, the Committee on Health, Education, Labor, and Pensions

12 13

of the Senate, and the Committees on Appropriations of the

14

House of Representatives and of the Senate, not less than 6

15

months following the submission of State reports, that evaluates the information provided in the State reports under section 13008. SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS SISTANCE.

No recipient of funds under this title shall use such funds to provide financial assistance to students to attend private elementary or secondary schools. SEC. 13012. DEFINITIONS.

Except as otherwise provided in this title, as used in this title—

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2

1 2

(1) the term ‘‘institution of higher education’’ has

3

the meaning given such term in section 101 of the Higher

4

Education Act of 1965 (20 U.S.C. 1001);

5

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

6 7

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

8 9 10

States, the District of Columbia, and the Commonwealth of Puerto Rico; and

11

(4) any other term used in this title that is defined 12 13 14

in section 9101 of ESEA (20 U.S.C. 7801) shall have the meaning given the term in that section.

15

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1

2

2

DIVISION B—OTHER

3

PROVISIONS TITLE I—TAX PROVISIONS

4 5

SEC. 1000. SHORT TITLE, ETC.

6 7 8 9 10 11

(a) S HORT T ITLE.—This title may be cited as the ‘‘American Recovery and Reinvestment Tax Act of 2009’’. (b) R EFERENCE.—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

12 13

section or other provision, the reference shall be considered

14

to be made to a section or other provision of the Internal

15

Revenue Code of 1986. (c) T ABLE OF C ONTENTS.—The table of contents for this title is as follows: Sec. 1000. Short title, etc. Subtitle A—Making Work Pay Sec. 1001. Making work pay credit. Subtitle B—Additional Tax Relief for Families With Children Sec. 1101. Increase in earned income tax credit. Sec. 1102. Increase of refundable portion of child credit. Subtitle C—American Opportunity Tax Credit Sec. 1201. American opportunity tax credit. Subtitle D—Housing Incentives Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. Sec. 1302. Coordination of low-income housing credit and low-income housing grants. Subtitle E—Tax Incentives for Business HR 1 PP

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2 PART 1—TEMPORARY INVESTMENT INCENTIVES Sec. 1401. Special allowance for certain property acquired during 2009.

Sec. 1402. Temporary increase in limitations on expensing of certain depreciable business assets. PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES Sec. 1411. 5-year carryback of operating losses. Sec. 1412. Exception for TARP recipients. PART 3—INCENTIVES FOR NEW JOBS Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE Sec. 1431. Clarification of regulations related to limitations on certain built-in losses following an ownership change. Subtitle F—Fiscal Relief for State and Local Governments PART 1—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502. Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503. Temporary modification of alternative minimum tax limitations on tax-exempt bonds. PART 2—TAX CREDIT BONDS FOR SCHOOLS Sec. 1511. Qualified school construction bonds. Sec. 1512. Extension and expansion of qualified zone academy bonds. PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS Sec. 1521. Taxable bond option for governmental bonds. PART 4—RECOVERY ZONE BONDS Sec. 1531. Recovery zone bonds. Sec. 1532. Tribal economic development bonds. PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS Sec. 1541. Repeal of withholding tax on government contractors. Subtitle G—Energy Incentives PART 1—RENEWABLE ENERGY INCENTIVES

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2

1 2 3 4 5 6 7

Sec. 1601. Extension of credit for electricity produced from certain renewable resources. Sec. 1602. Election of investment credit in lieu of production credit. Sec. 1603. Repeal of certain limitations on credit for renewable energy property. Sec. 1604. Coordination with renewable energy grants. PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS Sec. 1611. Increased limitation on issuance of new clean renewable energy bonds. Sec. 1612. Increased limitation and expansion of qualified energy conservation bonds. PART 3—ENERGY CONSERVATION INCENTIVES

8 9 10

Sec. 1621. Extension and modification of credit for nonbusiness energy property. Sec. 1622. Modification of credit for residential energy efficient property. Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling property.

11

PART 4—ENERGY RESEARCH INCENTIVES

12

Sec. 1631. Increased research credit for energy research.

13 14 15

Subtitle H—Other Provisions PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS Sec. 1701. Application of certain labor standards to projects financed with certain tax-favored bonds. PART 2—GRANTS TO PROVIDE FINANCING FOR LOW -INCOME HOUSING Sec. 1711. Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS Sec. 1721. Grants for specified energy property in lieu of tax credits. PART 4—STUDY OF ECONOMIC , EMPLOYMENT, AND RELATED EFFECTS OF THIS ACT Sec. 1731. Study of economic, employment, and related effects of this Act.

Subtitle A—Making Work Pay SEC. 1001. MAKING WORK PAY CREDIT.

(a) IN G ENERAL.—Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘SEC. 36A. MAKING WORK PAY CREDIT.

3

‘‘(a) A LLOWANCE OF C REDIT.—In the case of an eli-

4

gible individual, there shall be allowed as a credit against

5

the tax imposed by this subtitle for the taxable year an

6 7

amount equal to the lesser of— ‘‘(1) 6.2 percent of earned income of the tax-

8 9

payer, or

10 11

‘‘(2) $500 ($1,000 in the case of a joint return). ‘‘(b) LIMITATION B ASED ON M ODIFIED A DJUSTED G ROSS

12 13

INCOME.— ‘‘(1) IN GENERAL.—The amount allowable as a

14 15

credit under subsection (a) (determined without regard to this paragraph) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). ‘‘(2) M ODIFIED 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) D EFINITIONS.—For purposes of this section— ‘‘(1) HR 1 PP

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2

1 2

E LIGIBLE

3

means any individual other than—

4

INDIVIDUAL.—The

term ‘eligible individual’

‘‘(A) any nonresident alien individual, ‘‘(B) any individual with respect to whom a

5 6

deduction under section 151 is allowable to another

7

taxpayer for a taxable year beginning

in the

8

calendar year in which the individual’s taxable year

9

begins, and

10 11 12 13

‘‘(C) an estate or trust. Such term shall not include any individual unless the requirements of section 32(c)(1)(E) are met with re-

14 15

spect to such individual. ‘‘(2) E ARNED INCOME.—The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. ‘‘(d) T ERMINATION .—This section shall not apply to taxable years beginning after December 31, 2010.’’. HR 1 PP

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2

1 2

(b) T REATMENT OF P OSSESSIONS.—

3

(1) P AYMENTS TO POSSESSIONS.—

4

(A) M IRROR CODE POSSESSION .—The Sec-

5

retary of the Treasury shall pay to each posses

6

sion of the United States with a mirror code tax

7 8

system amounts equal to the loss to that

9

possession by reason of the amendments made by

10

this section with respect to taxable years be-

11

ginning in 2009 and 2010. Such amounts shall be

12

determined by the Secretary of the Treasury

13 14

based on information provided by the government

15

of the respective possession. (B) O THER 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 HR 1 PP

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2

1 2

respect to any possession of the United States

3

unless such possession has a plan, which has

4

been approved by the Secretary of the Treasury,

5

under which such possession will promptly

6 7

distribute such payments to the residents of such

8

possession.

9

(2) C OORDINATION WITH CREDIT ALLOWED AGAINST

10

UNITED STATES INCOME TAXES.—No

credit shall be

11

allowed against United States income taxes for any 12 13

taxable year under section 36A of the Internal

14

Revenue Code of 1986 (as added by this section) to

15

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) D EFINITIONS AND SPECIAL RULES.— (A)

P OSSESSION

STATES.—For

OF

THE

UNITED

purposes of this subsection, the

term ‘‘possession of the United States’’ includes HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the Commonwealth of Puerto Rico and the

3

Commonwealth of the Northern Mariana Islands.

4

(B) M IRROR CODE TAX SYSTEM .—For pur-

5

poses of this subsection, the term ‘‘mirror code

6 7

tax system’’ means, with respect to any posses-

8

sion of the United States, the income tax system of

9

such possession if the income tax liabil

10

ity of the residents of such possession under such

11

system is determined by reference to the income tax 12

laws of the United States as if such possession were

13

the United States.

14 15

(C) T REATMENT 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) R EFUNDS D ISREGARDED IN THE A DMINISTRATION OF FEDERAL P ROGRAMS AND FEDERALLY A SSISTED P ROGRAMS.—Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue

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2 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.

1

(d) C ONFORMING A MENDMENTS.— 2(1) Section 6211(b)(4)(A) is amended by insert

3

ing ‘‘36A,’’ after ‘‘36,’’. 4(2) Section 1324(b)(2) of title 31, United 5States Code, is amended by inserting ‘‘36A,’’ after

6

‘‘36,’’. 7(3) The table of sections for subpart C of part 8IV of subchapter A of chapter 1 is amended by in 9serting after the item relating to section 36 the fol

10

lowing new item: ‘‘Sec. 36A. Making work pay credit.’’.

11(e) E FFECTIVE D ATE .—This section shall apply to 12 taxable years beginning after December 31, 2008. 13 Subtitle

B—Additional Tax Relief

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2

1

14 for

2 3

15

Families With Children

SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT.

4

16(a) IN G ENERAL.—Subsection (b) of section 32 is

5

17 amended by adding at the end the following new para

6 7

18 graph: 19‘‘(3) S PECIAL RULES FOR 2009 AND 2010.—In

8

20the case of any taxable year beginning in 2009 or

9 10

21

2010—

11

22‘‘(A) INCREASED CREDIT PERCENTAGE

12

23 FOR 3 OR MORE QUALIFYING CHILDREN .—In

13

24the case of a taxpayer with 3 or more qualifying

14

25children, the credit percentage is 45 percent.

15

‘‘(B) R EDUCTION 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

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2

1 2

begins determined by substituting

3

‘calendar year 2008’ for ‘calendar year

4

1992’ in subparagraph (B) thereof.

5

‘‘(iii) R OUNDING .—Subparagraph (A) of

6 7

subsection (j)(2) shall apply after taking into

8

account any increase under clause (ii).’’.

9 10

(b) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December

11

31, 2008. 12 13

SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.

14 15

(a) IN G ENERAL.—Paragraph (4) of section 24(d) is amended to read as follows: ‘‘(4) S PECIAL RULE FOR 2009 AND 2010.—Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be zero.’’. (b) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

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2

1 2

SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT.

3

(a) IN G ENERAL.—Section 25A (relating to Hope

4

scholarship credit) is amended by redesignating subsection

5

(i) as subsection (j) and by inserting after subsection (h) the

6 7

following new subsection:

8

‘‘(i) A MERICAN O PPORTUNITY T AX C REDIT.—In the

9

case of any taxable year beginning in 2009 or 2010— ‘‘(1)

10

INCREASE IN CREDIT.—The Hope Scholarship Credit shall be

11

an amount equal to the sum of—

12

‘‘(A) 100 percent of so much of the qualified

13 14

tuition and related expenses paid by the taxpayer

15

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) C REDIT 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) Q UALIFIED TUITION AND RELATED EXPENSES TO INCLUDE REQUIRED COURSE MATERIALS.—Subsection HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(f)(1)(A) shall be applied by substituting ‘tuition, fees,

3

and course materials’ for ‘tuition and fees’.

4

‘‘(4) INCREASE IN AGI LIMITS FOR HOPE

5 6

SCHOLARSHIP CREDIT.—In

lieu of applying subsection

7

(d) with respect to the Hope Scholarship Credit, such

8

credit (determined without regard to this paragraph)

9

shall be reduced (but not below zero) by the amount

10

which bears the same ratio to such credit (as so

11

determined) as— 12

‘‘(A) the excess of— ‘‘(i) the taxpayer’s modified adjusted

13 14

gross income (as defined in subsection (d)(3))

15

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) C REDIT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

defined in section 26(b)) plus the tax imposed by

3

section 55, over

4

‘‘(B) the sum of the credits allowable under

5

this subpart (other than this subsection and sections

6 7

23, 25D, and 30D) and section 27 for the taxable

8

year.

9 10

Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this

11

subsection shall be treated as a reference to so much 12 13 14

of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit.

15

‘‘(6) P ORTION 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.

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1

‘‘(7) C OORDINATION WITH MIDWESTERN DISASTER

2 3 4

AREA BENEFITS.—In

the case of a taxpayer with respect

to whom section 702(a)(1)(B) of the Heartland

5 6

Disaster Tax Relief Act of 2008 applies for any

7

taxable year, such taxpayer may elect to waive the

8

application of this subsection to such taxpayer for such

9

taxable year.’’.

10

(b) C ONFORMING A MENDMENTS.—

11

(1) Section 24(b)(3)(B) is amended by inserting

12 13

‘‘25A(i),’’ after ‘‘23,’’. (2) Section 25(e)(1)(C)(ii) is amended by inserting

14 15

‘‘25A(i),’’ after ‘‘24,’’. (3) Section 26(a)(1) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (4) Section 25B(g)(2) is amended by inserting ‘‘25A(i),’’ after ‘‘23,’’. (5) Section 904(i) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (6) Section 1400C(d)(2) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (7) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘‘25A,’’ before ‘‘35’’. (c) E FFECTIVE D ATE .—The amendments made by this HR 1 PP

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1 2

section shall apply to taxable years beginning after December

3

31, 2008.

4

(d) A PPLICATION OF EGTRRA S UNSET.—The

5 6

amendment made by subsection (b)(1) shall be subject to

7

title IX of the Economic Growth and Tax Relief Reconcili-

8

ation Act of 2001 in the same manner as the provision of

9

such Act to which such amendment relates.

10

(e) T REASURY S TUDIES R EGARDING E DUCATION IN -

11 CENTIVES.—

12

(1) S TUDY REGARDING COORDINATION WITH

13 14

NON -TAX EDUCATIONAL INCENTIVES.—The

Secretary of

15

the Treasury, or the Secretary’s delegate, shall study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965. (2) S TUDY REGARDING IMPOSITION OF COMMUNITY SERVICE REQUIREMENTS.—The

Secretary of the

Treasury, or the Secretary’s delegate, shall study the feasibility of requiring students to perform community service as a condition of taking their tuition and related expenses into account under section 25A of the

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1 2

Internal Revenue Code of 1986.

3 4

(3) R EPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary of the

5 6

Treasury, or the Secretary’s delegate, shall report to

7

Congress on the results of the studies conducted under

8

this paragraph.

9 10

Subtitle D—Housing Incentives SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-

11 TIME HOMEBUYER CREDIT.

12 13

(a) IN G ENERAL.—Paragraph (4) of section 36(f) is

14

amended by adding at the end the following new subpara-

15

graph: ‘‘(D) W AIVER OF RECAPTURE FOR PURCHASES IN 2009 .—In the case

of any credit allowed with respect

to the purchase of a prin cipal residence after December 31, 2008, and before July 1, 2009— ‘‘(i) paragraph (1) shall not apply, and ‘‘(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

such residence by the taxpayer.’’.

2 3 4

(b) C ONFORMING A MENDMENT.—Subsection (g) of section 36 is amended by striking ‘‘subsection (c)’’ and

5 6

inserting ‘‘subsections (c) and (f)(4)(D)’’.

7

(c) E FFECTIVE D ATE .—The amendments made by this

8

section shall apply to residences purchased after December

9

31, 2008.

10

SEC. 1302. COORDINATION OF LOW-INCOME HOUSING

11

CREDIT AND LOW-INCOME HOUSING GRANTS.

12

Subsection (i) of section 42 of the Internal Revenue Code 13 14

of 1986 is amended by adding at the end the following new

15

paragraph: ‘‘(9) C OORDINATION WITH LOW -INCOME HOUSING GRANTS.—

‘‘(A) R EDUCTION 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

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1

2

2

1711 of the American Recovery and

3

Reinvestment Tax Act of 2009.

4

‘‘(B) S PECIAL RULE FOR BASIS.—Basis of a

5

qualified low-income building shall not be reduced

6 7

by the amount of any grant described in

8

subparagraph (A).’’.

9

Subtitle E—Tax Incentives for Business

10 11

PART 1—TEMPORARY INVESTMENT INCENTIVES 12 13

SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

14 15

1.

IN G ENERAL.—Paragraph (2) of section 168(k) is amended— 1.

by striking ‘‘January 1, 2010’’ and inserting ‘‘January 1, 2011’’, and

2.

by striking ‘‘January 1, 2009’’ each place it appears and inserting ‘‘January 1, 2010’’.

2. C ONFORMING A MENDMENTS.— (1) The heading for subsection (k) of section 168 is amended by striking ‘‘J ANUARY 1, 2009’’ and inserting ‘‘J ANUARY 1, 2010’’. (2) The heading for clause (ii) of section

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1 2

168(k)(2)(B) is amended by striking ‘‘ PRE-JANUARY 1,

3

2009 ’’

4

and inserting ‘‘ PRE-JANUARY 1,

2010 ’’.

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

5 6

amended—

7

1 by striking ‘‘and’’ at the end of clause (i),

8

2 by redesignating clause (ii) as clause (v),

9

and

10

3 by inserting after clause (i) the following

11

new clauses: 12

‘‘(ii) ‘April 1, 2008’ shall be substituted

13 14

for ‘January 1, 2008’ in subparagraph

15

(A)(iii)(I) thereof, ‘‘(iii) ‘January 1, 2009’ shall be substituted for ‘January 1, 2010’ each place it appears, ‘‘(iv) ‘January 1, 2010’ shall be substituted for ‘January 1, 2011’ in subparagraph (A)(iv) thereof, and’’. (4) Subparagraph (B) of section 168(l)(5) is amended by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. (5) Subparagraph (B) of section 1400N(d)(3) is

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1 2

amended by striking ‘‘January 1, 2009’’ and inserting

3

‘‘January 1, 2010’’.

4

(c) E FFECTIVE D ATES.—

5

(1) IN GENERAL.—Except as provided in paragraph 6 7

(2), the amendments made by this section shall apply

8

to property placed in service after December 31, 2008,

9

in taxable years ending after such date.

10 11

(2)

T ECHNICAL

AMENDMENT.—

Section

168(k)(4)(D)(ii) of the Internal Revenue Code of 1986,

12 13 14 15

as added by subsection (b)(3)(C), shall apply to taxable years ending after March 31, 2008. SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EX PENSING OF CERTAIN DEPRECIABLE BUSI NESS ASSETS.

(a) IN G ENERAL.—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) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

PART 2—5-YEAR CARRYBACK OF OPERATING

3

LOSSES

4 5

SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES.

(a) IN G ENERAL.—Subparagraph (H) of section

6 7

172(b)(1) is amended to read as follows: ‘‘(H) C ARRYBACK FOR 2008 AND 2009 NET

8

OPERATING LOSSES.—

9 10

‘‘(i) IN GENERAL.—In the case of an

11

applicable 2008 or 2009 net operating loss

12

with respect to which the taxpayer has

13 14

elected the application of this subpara-

15

graph— ‘‘(I) such net operating loss shall be reduced by 10 percent of such loss (determined

without

regard

to

this

subparagraph), ‘‘(II) subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 6 for ‘2’, ‘‘(III) subparagraph (E)(ii) shall be applied by substituting the whole number which is one less than the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

whole number substituted under sub-

2 3

clause (II) for ‘2’, and

4

‘‘(IV) subparagraph (F) shall not

5

apply.

6

‘‘(ii) A PPLICABLE 2008 OR 2009 NET

7 8

OPERATING LOSS.—For

9

subparagraph, the term ‘applicable 2008 or

10

purposes of this

2009 net operating loss’ means—

11

‘‘(I) the taxpayer’s net operating 12

loss for any taxable year ending in 2008

13

or 2009, or

14 15

‘‘(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008 or 2009. ‘‘(iii) E LECTION .—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

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1 2

net operating loss. Any such election, once

3

made, shall be irrevocable.

4

‘‘(iv) C OORDINATION WITH ALTERNATIVE

5 TAX NET OPERATING LOSS DEDUCTION .—In

6

the

7

case of a taxpayer who elects to have clause

8

(ii)(II) apply, section 56(d)(1)(A)(ii) shall be

9

applied by substituting ‘ending during 2001

10

or 2002 or beginning during 2008 or 2009’

11

for ‘ending during 2001, 2002, 2008, or 12

2009’.’’.

13 14 15

(b) A LTERNATIVE T AX N ET O PERATING LOSS D E DUCTION .—Subclause

(I) of section 56(d)(1)(A)(ii) is

amended to read as follows: ‘‘(I) the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to such taxable years, or’’. (c) LOSS FROM O PERATIONS OF LIFE INSURANCE C OMPANIES.—Subsection (b) of section 810 is amended by adding at the end the following new paragraph:

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1 2

‘‘(4) C ARRYBACK FOR 2008 AND 2009 LOSSES.—

3

‘‘(A) IN GENERAL.—In the case of an applicable

4

2008 or 2009 loss from operations with respect to

5

which the taxpayer has elected the application of

6

this paragraph—

7

‘‘(i) such loss from operations shall be

8 9

reduced by 10 percent of such loss (deter-

10

mined without regard to this paragraph), and

11 12

‘‘(ii) paragraph (1)(A) shall be applied,

13 14

at the election of the taxpayer, by

15

substituting ‘5’ or ‘4’ for ‘3’. ‘‘(B) A PPLICABLE 2008 OR 2009 LOSS FROM OPERATIONS.—For

purposes of this paragraph, the

term ‘applicable 2008 or 2009 loss from operations’ means— ‘‘(i) the taxpayer’s loss from operations for any taxable year ending in 2008 or 2009, or ‘‘(ii) if the taxpayer elects to have this clause apply in lieu of clause (i), the taxpayer’s loss from operations for any taxable

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1 2

year beginning in 2008 or 2009.

3

‘‘(C) E LECTION .—Any election under this

4

paragraph shall be made in such manner as may be

5

prescribed by the Secretary, and shall be made by

6 7

the due date (including extension of time) for filing

8

the taxpayer’s return for the taxable year of the loss

9

from operations. Any such election, once made,

10

shall be irrevocable.

11

‘‘(D) C OORDINATION WITH ALTERNATIVE TAX 12 NET OPERATING LOSS DEDUCTION .—In

13

the case of a

14

taxpayer who elects to have subparagraph (B)(ii)

15

apply, section 56(d)(1)(A)(ii) shall be applied by substituting ‘ending during 2001 or 2002 or beginning during 2008 or 2009’ for ‘ending during 2001, 2002, 2008, or 2009’.’’. (d) C ONFORMING A MENDMENT.—Section 172 is amended by striking subsection (k). (e) E FFECTIVE D ATE .— (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) A LTERNATIVE TAX NET OPERATING LOSS HR 1 PP

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1 2

DEDUCTION .—The

3

amendment made by subsection

(b) shall apply to taxable years ending after 1997.

4

(3) LOSS FROM OPERATIONS OF LIFE INSURANCE

5 COMPANIES.—The

amendment made by subsection (d)

6 7 8

shall apply to losses from operations arising in taxable years ending after December 31, 2007.

9

(4) T RANSITIONAL

10 11

RULE .—In

the case of a net

operating loss (or, in the case of a life insurance

12

company, a loss from operations) for a taxable year

13

ending before the date of the enactment of this Act—

14

(A) any election made under section

15

172(b)(3) or 810(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, (B) any election made under section 172(b)(1)(H) or 810(b)(4) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and (C) any application under section 6411(a) of such Code with respect to such loss shall be

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1 2

treated as timely filed if filed before the applicable

3

date.

4

For purposes of this paragraph, the term ‘‘applicable

5

date’’ means the date which is 60 days after the date

6

of the enactment of this Act.

7 8

SEC. 1412. EXCEPTION FOR TARP RECIPIENTS.

The amendments made by this part shall not apply

9 10

to—

11

(1) any taxpayer if—

12 13

(A) the Federal Government acquires, at any

14

time, an equity interest in the taxpayer pursuant to

15

the Emergency Economic Stabilization Act of 2008, or (B) the Federal Government acquires, at any time, any warrant (or other right) to acquire any equity interest with respect to the taxpayer pursuant to such Act, (2) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and (3) any taxpayer which at any time in 2008 or (GGGGGGGGGGGGGGG) is a member of the same affiliated group (as defined in section 1504 of the

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1 2

Internal Revenue Code of 1986, determined without

3

regard to subsection (b) thereof) as a taxpayer

4

described in paragraph (1) or (2).

5 PART 3—INCENTIVES FOR NEW JOBS 6 7

SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH.

8 9 10

1 IN G ENERAL.—Subsection (d) of section 51 is amended by adding at the end the following new paragraph:

11

‘‘(14) C REDIT ALLOWED FOR UNEMPLOYED

12 13

VETERANS AND DISCONNECTED YOUTH HIRED IN 2009 OR

14

2010 .—

15

‘‘(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) D EFINITIONS.—For purposes of this paragraph— ‘‘(i) U NEMPLOYED VETERAN .—The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is

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1

certified by the designated local agency as—

2 3 4

‘‘(I) having been discharged or

5

released from active duty in the Armed

6 7

Forces during 2008, 2009, or 2010, and

8

‘‘(II) being in receipt of unem-

9

ployment compensation under State or

10

Federal law for not less than 4 weeks

11

during the 1-year period ending on the 12

hiring date.

13

‘‘(ii) D ISCONNECTED YOUTH .—The term

14 15

‘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)

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1 2

as not readily employable by reason of

3

lacking a sufficient number of basic

4

skills.’’.

5 6

(b) E FFECTIVE D ATE .—The amendments made by this

7

section shall apply to individuals who begin work for the

8

employer after December 31, 2008.

9 10 11 12 13 14 15

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1 2

PART 4—CLARIFICATION OF REGULATIONS RE-

3

LATED TO LIMITATIONS ON CERTAIN BUILT- IN

4

LOSSES FOLLOWING AN OWNERSHIP CHANGE

5 SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO

6 LIMITATIONS ON CERTAIN BUILT-IN LOSSES

7 FOLLOWING AN OWNERSHIP CHANGE.

8 9

(a) FINDINGS.—Congress finds as follows: (1) The delegation of authority to the Secretary of

10 11 12

the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the

13 14 15

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

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1 2

Code of 1986 of the limitation

3

following an ownership change of a bank.

4

(b) D ETERMINATION

OF

on built-in losses

FORCE AND E FFECT OF INTERNAL

5 6

R EVENUE S ERVICE N OTICE 2008–83 E XEMPTING B ANKS FROM

7

LIMITATION

8

O WNERSHIP C HANGE .—

9 10

ON

C ERTAIN B UILT– IN LOSSES FOLLOWING

(1) IN GENERAL.—Internal Revenue Service Notice 2008–83—

11

(A) shall be deemed to have the force and 12

effect of law with respect to any ownership

13 14

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

15

ternal 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)

B INDING

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

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1

(B) is pursuant to a written agreement en-

2 3

tered into on or before such date and such

4

agreement was described on or before such date

5

in a public announcement or in a filing with the

6 7

Securities and Exchange Commission required by

8

reason of such ownership change.

9 10

Subtitle F—Fiscal Relief for State and Local Governments

11 PART 1—IMPROVED MARKETABILITY FOR TAX12 EXEMPT BONDS

13 14

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-

15

EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.

(a) IN G ENERAL.—Subsection (b) of section 265 is amended by adding at the end the following new paragraph: ‘‘(7) D E 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

amount determined under paragraph (2)(B).

2 3

‘‘(C) R EFUNDINGS.—For purposes of this

4

paragraph, a refunding bond (whether a current or

5

advance refunding) shall be treated as issued on the

6 7

date of the issuance of the refunded bond (or in the

8

case of a series of refundings, the original bond).’’.

9 10

(b) T REATMENT AS FINANCIAL INSTITUTION P REFERENCE ITEM .—Clause (iv) of section 291(e)(1)(B) is amended by

11

adding at the end the following: ‘‘That portion of any 12 13

obligation not taken into account under paragraph (2)(A) of

14

section 265(b) by reason of paragraph (7) of such section

15

shall be treated for purposes of this section as having been acquired on August 7, 1986.’’. (c) E FFECTIVE D ATE .—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 ALLOCA TION RULES FOR FINANCIAL INSTITUTIONS.

(a) IN G ENERAL.—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: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(G) S PECIAL RULES FOR OBLIGATIONS ISSUED

2 3

DURING 2009 AND 2010.—

4

‘‘(i) INCREASE IN LIMITATION .—In the

5

case of obligations issued during 2009 or

6 7

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

8

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

9

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

10

‘‘(ii)

Q UALIFIED

501(C)(3)

BONDS

11 TREATED AS ISSUED BY EXEMPT ORGANI-

12 ZATION .—In

13

the case of a qualified 501(c)(3)

14

bond (as defined in section 145) issued

15

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) S PECIAL RULE FOR QUALIFIED FINANCINGS.—In

the case of a qualified fi-

nancing 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 qualified tax-exempt obligation if HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

a the

2

1 2

requirements of this paragraph are met

3

with respect to each qualified portion of

4

the issue (determined by treating each

5

qualified portion as a

separate issue

7

issued by the qualified

borrower with

8

respect to which such portion relates).

9

‘‘(iv) Q UALIFIED FINANCING ISSUE.—

6

10

For purposes of this subparagraph, the term

11

‘qualified financing issue’ means any 12

composite, pooled, or other conduit financing

13 14

issue the proceeds of which are used directly

15

or indirectly to make or finance loans to one or more ultimate borrowers each of whom is a qualified borrower. ‘‘(v) Q UALIFIED 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) Q UALIFIED BORROWER.—For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower

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2

1 2

which is a State or political subdivision

3

thereof or an organization described in sec-

4

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

5

under section 501(a).’’.

6 7

(b) E FFECTIVE D ATE .—The amendments made by this

8

section shall apply to obligations issued after December 31,

9

2008.

10

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE

11

MINIMUM TAX LIMITATIONS ON TAX-EXEMPT

12 BONDS.

13 14 15

(a) INTEREST ON P RIVATE A CTIVITY B ONDS ISSUED D URING 2009

AND

2010 N OT T REATED AS T AX P REFERENCE

ITEM .—Subparagraph (C) of section 57(a)(5) is amended by adding at the end a new clause: ‘‘(vi) E XCEPTION FOR BONDS ISSUED IN 2009 AND 2010.—For

purposes of clause (i),

the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. For purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

bond (or in the case of a series of

3

refundings, the original bond).’’.

4

(b) N O A DJUSTMENT TO A DJUSTED C URRENT E ARNINGS

5 6

FOR INTEREST ON

T AX -E XEMPT B ONDS ISSUED A FTER

7

2008.—Subparagraph (B) of section 56(g)(4) is amended

8

by adding at the end the following new clause:

9

‘‘(iv) T AX EXEMPT INTEREST ON BONDS

10

ISSUED IN 2009 AND 2010.—Clause

11

(i) shall not apply in the case of any interest 12

on a bond issued after December 31, 2008,

13 14

and before January 1, 2011. For purposes of

15

the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall apply to obligations issued after December 31, 2008. PART 2—TAX CREDIT BONDS FOR SCHOOLS SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS.

(a) IN G ENERAL.—Subpart I of part IV of subchapter A HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of chapter 1 is amended by adding at the end the following

3

new section:

4

‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

5

‘‘(a) Q UALIFIED S CHOOL C ONSTRUCTION B OND .— For

6 7

purposes of this subchapter, the term ‘qualified school

8

construction bond’ means any bond issued as part of an

9

issue if—

10

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

11

of such issue are to be used for the construction,

12

rehabilitation, or repair of a public school facility or for

13 14

the acquisition of land on which such a facility is to be

15

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 A MOUNT OF B ONDS D ESIGNATED .—The

maximum aggregate face amount of bonds

issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the sum of— ‘‘(1) the limitation amount allocated under subHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section (d) for such calendar year to such issuer, and

3 4

‘‘(2) if such issuer is a large local educational agency (as defined in subsection (e)(4)) or is issuing on

5 6

behalf of such an agency, the limitation amount allocated

7

under subsection (e) for such calendar year to such

8

agency.

9

‘‘(c) N ATIONAL LIMITATION

10

ON

A MOUNT

OF

B ONDS

D ESIGNATED .—There is a national qualified school con-

11

struction bond limitation for each calendar year. Such lim12 13

itation is—

14

‘‘(1) $11,000,000,000 for 2009,

15

‘‘(2) $11,000,000,000 for 2010, and ‘‘(3) except as provided in subsection (f), zero after 2010. ‘‘(d) 60 P ERCENT OF LIMITATION A LLOCATED A MONG S TATES.— ‘‘(1) IN

GENERAL.—60

percent of the limitation

applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective numbers of children in each State who have attained age 5 but not age 18 for the most recent fiscal year ending before such calendar year.

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2

1 2

The limitation amount allocated to a State under the

3

preceding sentence shall be allocated by the State to

4

issuers within such State.

5

‘‘(2) M INIMUM ALLOCATIONS TO STATES.— ‘‘(A)

6 7

IN GENERAL.—The Secretary shall adjust the

8

allocations under this subsection for any calendar

9

year for each State to the extent necessary to

10

ensure that the sum of—

11

‘‘(i) the amount allocated to such State 12

under this subsection for such year, and

13 14

‘‘(ii) the aggregate amounts allocated

15

under subsection (e) to large local educational agencies in such State for such year, is not less than an amount equal to such

State’s adjusted

minimum percentage of the amount to be allocated under paragraph (1) for the calendar year. ‘‘(B) A DJUSTED

MINIMUM PERCENTAGE .—

A

State’s adjusted minimum percentage for any calendar year is the product of— ‘‘(i) the minimum percentage described in section 1124(d) of the Elementary and Secondary Education Act of 1965 (20

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2

1 2

U.S.C. 6334(d)) for such State for the most

3

recent fiscal year ending before such

4

calendar year, multiplied by

5

‘‘(ii) 1.68.

6

‘‘(3)

7

A LLOCATIONS

TO

CERTAIN

POS

8

SESSIONS.—The

9

graph (1) to any possession of the United States other

10 11

amount to be allocated under para

than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph

12 13

(1) were made on the basis of respective populations

14

of individuals below the poverty line (as defined by the

15

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) A LLOCATIONS 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 HR 1 PP

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2

1 2

amounts allocated under the preceding sentence,

3

Indian tribal governments (as defined in section

4

7701(a)(40)) shall be treated as qualified issuers for

5 6 7 8

purposes of this subchapter. ‘‘(e) 40 P ERCENT OF LIMITATION A LLOCATED A MONG LARGEST S CHOOL D ISTRICTS.—

9 10

‘‘(1) IN GENERAL.—40 percent of the limitation applicable under subsection (c) for any calendar year

11

shall be allocated under paragraph (2) by the Secretary 12 13 14

among local educational agencies which are large local educational agencies for such year.

15

‘‘(2) A LLOCATION

FORMULA.—The

amount to be

allocated under paragraph (1) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received for Basic Grants under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent fiscal year ending before such calendar year. ‘‘(3) A LLOCATION OF UNUSED LIMITATION TO STATE .—The

amount allocated under this subsection to

a large local educational agency for any calendar year

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2

1 2

may be reallocated by such agency to the State in

3

which such agency is located for such calendar year.

4

Any amount reallocated to a State under the preceding

5 6 7

sentence may be allocated as provided in subsection (d)(1). ‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY .— For

8 9 10

purposes of this section, the term ‘large local educational agency’ means, with respect to a calendar

11

year, any local educational agency if such agency is— 12

‘‘(A) among the 100 local educational

13 14

agencies with the largest numbers of children

15

aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or ‘‘(B) 1 of not more than 25 local educational agencies (other than those described in subparagraph (A)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level

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2 of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. ‘‘(f) C ARRYOVER OF U NUSED 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

1 by the amount of such excess. A similar rule shall apply 2 to the amounts allocated under subsection (d)(4) or (e).’’. 3

(b) C ONFORMING A MENDMENTS.— 4(1) Paragraph (1) of section 54A(d) is amended 5by striking ‘‘or’’ at the end of subparagraph (C), by 6inserting ‘‘or’’ at the end of subparagraph (D), and 7by inserting after subparagraph (D) the following

8

new subparagraph: 9‘‘(E)aqualifiedschoolconstruction

10

bond,’’.

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2 11(2) Subparagraph (C) of section 54A(d)(2) is 12amended by striking ‘‘and’’ at the end of clause (iii), 13by striking the period at the end of clause (iv) and 14inserting ‘‘, and’’, and by adding at the end the fol 15

lowing new clause: 16‘‘(v) in the case of a qualified school 17construction bond, a purpose specified in

18

section 54F(a)(1).’’. 19(3) The table of sections for subpart I of part 20IV of subchapter A of chapter 1 is amended by add 21ing at the end the following new item: ‘‘Sec. 54F. Qualified school construction bonds.’’.

22(c) E FFECTIVE D ATE .—The amendments made by 23 this section shall apply to obligations issued after Decem 24 ber 31, 2008.

1

SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED

2

ZONE ACADEMY BONDS.

3(a) IN G ENERAL.—Section 54E(c)(1) is amended by 4 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 5 for 2009 and 2010’’. 6(b) E FFECTIVE D ATE .—The amendment made by 7 this section shall apply to obligations issued after Decem 8 ber 31, 2008. 9 PART 3—TAXABLE BOND OPTION FOR HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

10 GOVERNMENTAL BONDS

2 3 4

11

SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL

12

BONDS.

5

13(a) IN G ENERAL.—Part IV of subchapter A of chap

6 7

14 ter 1 is amended by adding at the end the following new 15 subpart:

8

16 ‘‘Subpart J—Taxable Bond Option for Governmental 9 10

17

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

11

18

12 13

Bonds

‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL

19

BONDS.

14

20‘‘(a) IN G ENERAL.—If a taxpayer holds a taxable

15

21 governmental bond on one or more interest payment dates 22 of the bond during any taxable year, there shall be allowed 23 as a credit against the tax imposed by this chapter for 24 the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. ‘‘(b) A MOUNT OF C REDIT.—The amount of the credit determined under this subsection with respect to any interest payment date for a taxable governmental bond is 35 percent of the amount of interest payable by the issuer with respect to such date. ‘‘(c) LIMITATION B ASED ON A MOUNT OF T AX .— ‘‘(1) IN

GENERAL.—The

credit allowed under

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2

1 2

subsection (a) for any taxable year shall not exceed the

3

excess of—

4

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

5

defined in section 26(b)) plus the tax imposed by

6

section 55, over

7

‘‘(B) the sum of the credits allowable under

8 9

this part (other than subpart C and this subpart).

10

‘‘(2) C ARRYOVER OF UNUSED CREDIT.—If the

11

credit allowable under subsection (a) exceeds the 12 13

limitation imposed by paragraph (1) for such taxable

14

year, such excess shall be carried to the succeeding

15

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) T AXABLE G OVERNMENTAL B OND .— ‘‘(1) IN GENERAL.—For purposes of this section, the term ‘taxable governmental bond’ means any obligation (other than a private activity bond) if— ‘‘(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, and ‘‘(B) the issuer makes an irrevocable election HR 1 PP

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2

1 2

to have this section apply.

3

‘‘(2) A PPLICABLE RULES.—For purposes of ap-

4

plying paragraph (1)—

5

‘‘(A) a taxable governmental bond shall not

6 7

be treated as federally guaranteed by reason of

8

the credit allowed under subsection (a) or section

9

6432,

10

‘‘(B) the yield on a taxable governmental bond

11

shall be determined without regard to the credit 12

allowed under subsection (a), and

13

‘‘(C) a bond shall not be treated as a taxable

14 15

governmental bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. ‘‘(e) INTEREST P AYMENT D ATE .—For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the taxable governmental bond is entitled to a payment of interest under such bond. ‘‘(f) S PECIAL R ULES.— ‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL BONDS INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX HR 1 PP

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2

1 2

PURPOSES.—For

3

taxable governmental bond shall be includible in gross

4

purposes of this title, interest on any

income.

5

‘‘(2) A PPLICATION OF CERTAIN RULES.—Rules

6 7

similar to the rules of subsections (f), (g), (h), and

8

(i) of section 54A shall apply for purposes of the credit

9

allowed under subsection (a).

10

‘‘(g) S PECIAL R ULE FOR Q UALIFIED B ONDS ISSUED B EFORE

11

2011.—In the case of a qualified bond issued before January 12 13

1, 2011— ‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.—In

14 15

lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6432. ‘‘(2) Q UALIFIED BOND .—For purposes of this subsection, the term ‘qualified bond’ means any tax able governmental bond issued as part of an issue if— ‘‘(A) 100 percent of the available project proceeds (as defined in section 54A) of such issue are to be used for capital expenditures, and ‘‘(B) the issuer makes an irrevocable election to have this subsection apply.

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2

1

‘‘(h) R EGULATIONS.—The Secretary may prescribe such

2 3 4

regulations and other guidance as may be necessary

or

appropriate to carry out this section and section 6432.’’.

5

(b) C REDIT FOR Q UALIFIED B ONDS ISSUED B EFORE

6 7

2011.—Subchapter B of chapter 65, as amended by this

8

Act, is amended by adding at the end the following new

9

section:

10

‘‘SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO

11

ISSUER.

12

‘‘(a) IN G ENERAL.—In the case of a qualified bond 13 14 15

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) P AYMENT OF C REDIT.—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) A PPLICATION OF A RBITRAGE R ULES.—For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. HR 1 PP

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2 ‘‘(d) INTEREST P AYMENT D ATE .—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) Q UALIFIED B OND .—For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(h).’’. (c) C ONFORMING A MENDMENTS.— (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking ‘‘or 6428’’ and inserting ‘‘6428, or 6432,’’. (2) Section 54A(c)(1)(B) is amended by striking ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. (3)

Sections

54(c)(2),

1397E(c)(2),

and 1400N(l)(3)(B) are each amended by striking ‘‘and I’’ and inserting ‘‘, I, and J’’. (4) Section 6401(b)(1) is amended by striking ‘‘and I’’ and inserting ‘‘I, and J’’.

1(5) The table of subparts for part IV of sub 2chapter A of chapter 1 is amended by adding at the 3

end the following new item: ‘‘Subpart J. Taxable bond option for governmental bonds.’’.

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2

1 2

4(6) The table of sections for subchapter B of

3

5chapter 65, as amended by this Act, is amended by

4

6adding at the end the following new item:

5

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

6

7(d) T RANSITIONAL C OORDINATION W ITH S TATE

7

8 LAW .—Except as otherwise provided by a State after the

8

9 date of the enactment of this Act, the interest on any tax

9

10 able governmental bond (as defined in section 54AA of

10

11 the Internal Revenue Code of 1986, as added by this sec

11

12 tion) and the amount of any credit determined under such

12 13

13 section with respect to such bond shall be treated for pur

14

14 poses of the income tax laws of such State as being exempt

15

15 from Federal income tax. 16(e) E FFECTIVE D ATE .—The amendments made by 17 this section shall apply to obligations issued after the date 18 of the enactment of this Act. 19 PART 4—RECOVERY ZONE BONDS 20

SEC. 1531. RECOVERY ZONE BONDS.

21(a) IN G ENERAL.—Subchapter Y of chapter 1 is 22 amended by adding at the end the following new part: 23 ‘‘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.

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2

1 2

‘‘(a) A LLOCATIONS.—

3 4

‘‘(1) IN GENERAL.—The Secretary shall allocate the national recovery zone economic development

5

bond limitation and the national recovery zone facility 6 7

bond limitation among the States in the proportion that

8

each such State’s 2008 State employment decline bears

9

to the aggregate of the 2008 State employment

10

declines for all of the States.

11

‘‘(2) 2008

STATE

EMPLOYMENT DECLINE .—For

12 13

purposes of this subsection, the term ‘2008 State

14

employment decline’ means, with respect to any State,

15

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) A LLOCATIONS BY STATES.— ‘‘(A) IN GENERAL.—Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion the each such county’s or municipality’s 2008 employment decline bears to HR 1 PP

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2

1 2

the aggregate of the 2008 employment declines for

3

all the counties and municipalities in such State.

4

‘‘(B) LARGE MUNICIPALITIES.—For purposes of

5

subparagraph (A), the term ‘large municipality’

6 7

means a municipality with a population of more than

8

100,000.

9

‘‘(C) D ETERMINATION OF LOCAL EMPLOYMENT

10

DECLINES.—For

purposes of this paragraph, the

11

employment decline of any municipality or county 12

shall be determined in the same manner as

13 14

determining the State employment decline under

15

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) N ATIONAL LIMITATIONS.— ‘‘(A) R ECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.—There

is a national recovery

zone economic development bond limitation of $10,000,000,000. ‘‘(B) R ECOVERY

ZONE FACILITY BONDS.—

There is a national recovery zone facility bond

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2

1

limitation of $15,000,000,000.

2 3 4

‘‘(b) R ECOVERY Z ONE .—For purposes of this part, the term ‘recovery zone’ means—

5

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

6 7

significant poverty, unemployment, home foreclosures, or

8

general distress, and

9 10

‘‘(2) any area for which a designation as an empowerment zone or renewal community is in effect.

11 ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT

12 BONDS.

13 14 15

‘‘(a) IN G ENERAL.—In the case of a recovery zone economic development bond— ‘‘(1) such bond shall be treated as a qualified bond for purposes of section 6432, and ‘‘(2) subsection (b) of such section shall be applied by substituting ‘55 percent’ for ‘35 percent’. ‘‘(b) R ECOVERY Z ONE E CONOMIC D EVELOPMENT B OND .— ‘‘(1) IN GENERAL.—For purposes of this section, the term ‘recovery zone economic development bond’ means any taxable governmental bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if— ‘‘(A) 100 percent of the available project HR 1 PP

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2

1 2

proceeds (as defined in section 54A) of such issue

3

are to be used for one or more qualified economic

4

development purposes, and

5

‘‘(B) the issuer designates such bond for

6 7

purposes of this section.

8

‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-

9 10

IGNATED .—The

maximum aggregate face amount of

bonds which may be designated by any issuer under

11

paragraph (1) shall not exceed the amount of the re12 13

covery zone economic development bond limitation

14

allocated to such issuer under section 1400U–1.

15

‘‘(c) Q UALIFIED E CONOMIC D EVELOPMENT P URPOSE .—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.

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1 2 3 4 5

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

‘‘(a) IN G ENERAL.—For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes

6 7 8

any recovery zone facility bond. ‘‘(b) R ECOVERY Z ONE FACILITY B OND .— ‘‘(1) IN GENERAL.—For purposes of this section,

9 10 11

the term ‘recovery zone facility bond’ means any bond issued as part of an issue if—

12

‘‘(A) 95 percent or more of the net proceeds 13

(as defined in section 150(a)(3)) of such issue are

14

to be used for recovery zone property, ‘‘(B) such

15

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) R ECOVERY Z ONE P ROPERTY .—For purposes of this section— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

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

3

means any property to which section 168 applies (or

4

would apply but for section 179) if— ‘‘(A) such

5 6 7

property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after the date on which the designation of the recovery zone took effect,

8 9

‘‘(B) the original use of which in the recov-

10

ery zone commences with the taxpayer, and

11

‘‘(C) substantially all of the use of which is 12

in the recovery zone and is in the active conduct

13 14

of a qualified business by the taxpayer in such

15

zone. ‘‘(2) Q UALIFIED 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).

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1‘‘(3) S PECIAL RULES FOR SUBSTANTIAL REN 2 OVATIONS AND SALE -LEASEBACK .—Rules similar to 3the rules of subsections (a)(2) and (b) of section 41397D shall apply for purposes of this subsection. 5‘‘(d) N ONAPPLICATION OF C ERTAIN R ULES.—Sec 6 tions 146 (relating to volume cap) and 147(d) (relating 7 to acquisition of existing property not permitted) shall not 8 apply to any recovery zone facility bond.’’. 9(b) C LERICAL A MENDMENT.—The table of parts for 10 subchapter Y of chapter 1 of such Code is amended by 11 adding at the end the following new item: ‘‘PART III. RECOVERY ZONE BONDS.’’.

12(c) E FFECTIVE D ATE .—The amendments made by 13 this section shall apply to obligations issued after the date 14 of the enactment of this Act. 15

SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS.

16(a) IN G ENERAL.—Section 7871 is amended by add 17 ing at the end the following new subsection: 18‘‘(f) T RIBAL E CONOMIC D EVELOPMENT B ONDS.— 19‘‘(1) A LLOCATION OF LIMITATION .— 20‘‘(A) IN GENERAL.—The Secretary shall 21allocate the national tribal economic develop 22ment bond limitation among the Indian tribal 23governments in such manner as the Secretary, HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

24in consultation with the Secretary of the Inte

2 3

25

rior, determines appropriate.

4

‘‘(B) N ATIONAL LIMITATION .—There is a

5

national tribal economic development bond limi-

6

tation of $2,000,000,000.

7

‘‘(2) B ONDS TREATED AS EXEMPT FROM TAX .—In

8 9

the case of a tribal economic development bond—

10

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

11

bond shall be treated for purposes of this title in the

12

same manner as if such bond were issued by a 13

State, and

14

‘‘(B) section 146 shall not apply.

15

‘‘(3)

T RIBAL

ECONOMIC

DEVELOPMENT

BOND .—

‘‘(A) IN GENERAL.—For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— ‘‘(i) the interest on which is not exempt from tax under section 103 by reason of subsection (c) (determined without regard to this subsection) but would be so exempt if issued by a State or local government, and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

‘‘(ii) which is designated by the Indian

2 3

tribal government as a tribal eco nomic

4

development bond for purposes of this

5

subsection.

6

‘‘(B) E XCEPTIONS.—The term tribal eco-

7 8

nomic development bond shall not include any

9

bond issued as part of an issue if any portion of

10

the proceeds of such issue are used to finance—

11

‘‘(i) any portion of a building in which 12

class II or class III gaming (as defined in

13 14

section 4 of the Indian Gaming Regulatory

15

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

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1 2

economic development bond limitation allocated

3

to such government under paragraph (1).’’.

4

(b) S TUDY .—The Secretary of the Treasury, or the

5 6

Secretary’s delegate, shall conduct a study of the effects of

7

the amendment made by subsection (a). Not later than 1

8

year after the date of the enactment of this Act, the

9

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

10

report to Congress on the results of the studies conducted

11

under this paragraph, including the Secretary’s 12 13

recommendations regarding such amendment.

14

(c) E FFECTIVE D ATE .—The amendment made by

15

subsection (a) shall apply to obligations issued after the date of the enactment of this Act. PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERN MENT CONTRACTORS.

Section 3402 is amended by striking subsection (t).

Subtitle G—Energy Incentives PART 1—RENEWABLE ENERGY INCENTIVES SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRO DUCED FROM CERTAIN RENEWABLE RE SOURCES.

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1 2 3

(a) IN G ENERAL.—Subsection (d) of section 45 is amended—

4

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

5 6

serting ‘‘2013’’,

7

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

8

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

9

‘‘2014’’, and

10

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

11

inserting ‘‘2014’’. 12 13

(b) T ECHNICAL A MENDMENT.—Paragraph (5) of section

14

45(d) is amended by striking ‘‘and before’’ and

all that

15

follows and inserting ‘‘ and before October 3, 2008.’’. (c) E FFECTIVE D ATE .— (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) T ECHNICAL AMENDMENT.—The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

(a) IN G ENERAL.—Subsection (a) of section 48 is HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

amended by adding at the end the following new paragraph:

3 4

‘‘(5) E LECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY .—

5

‘‘(A) IN

6

GENERAL.—In

the case of any

7

qualified investment credit facility placed in service

8

in 2009 or 2010—

9

‘‘(i) such facility shall be treated as

10

energy property for purposes of this section,

11

and 12

‘‘(ii) the energy percentage with respect

13 14

to such property shall be 30 percent. ‘‘(B)

15

D ENIAL OF PRODUCTION CREDIT.— No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. ‘‘(C) Q UALIFIED INVESTMENT CREDIT FACILITY .—For

purposes of this paragraph, the term

‘qualified investment credit facility’ means any facility described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an

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1 2

irrevocable election to have this paragraph apply

3

to such facility.’’.

4

(b) E FFECTIVE D ATE .—The amendments made by this

5 6 7 8

section shall apply to facilities placed in service after December 31, 2008. SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY.

9 10 11

(a) R EPEAL OF LIMITATION ON C REDIT FOR Q UALIFIED S MALL W IND E NERGY P ROPERTY .—Paragraph (4) of section

12

48(c) is amended by striking subparagraph (B) and by 13 14 15

redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) R EPEAL OF LIMITATION ON P ROPERTY FINANCED BY S UBSIDIZED E NERGY FINANCING .— (1) IN GENERAL.—Subsection (a) of section 48 is amended by striking paragraph (4). (2) C ONFORMING 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) E FFECTIVE D ATE .— (1) IN GENERAL.—Except as provided in paragraph HR 1 PP

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1 2

(2),the amendment made by this section shall apply to

3

periods after December 31, 2008, under rules similar

4

to the rules of section 48(m) of the Internal Revenue

5 6

Code of 1986 (as in effect on the day before the date

7

of the enactment of the Revenue Reconciliation Act of

8

1990).

9

(2) C ONFORMING AMENDMENTS.—The amendments

10 11

made by subsection (b)(2) shall apply to taxable years

12

beginning after December 31, 2008.

13

SEC. 1604. COORDINATION WITH RENEWABLE ENERGY

14 15

GRANTS.

Section 48 is amended by adding at the end the following new subsection: ‘‘(d) C OORDINATION W ITH D EPARTMENT OF E NERGY G RANTS.—In the case of any property with respect to which the Secretary of Energy makes a grant under section 1721 of the American Recovery and Reinvestment Tax Act of 2009— ‘‘(1) D ENIAL 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

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1

2

2

subsequent taxable year.

3 4

‘‘(2) R ECAPTURE OF CREDITS FOR PROGRESS EXPENDITURES MADE BEFORE GRANT.—If

a credit was

5 6

determined under this section with respect to such

7

property for any taxable year ending before such grant

8

is made—

9

‘‘(A) the tax imposed under subtitle A on the

10

taxpayer for the taxable year in which such grant

11

is made shall be increased by so much of such 12

credit as was allowed under section 38, ‘‘(B) the

13 14

general business carryforwards under section 39

15

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) T REATMENT 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

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1 2

property shall be reduced under section 50(c) in

3

the same manner as a credit allowed under sub-

4

section (a).’’.

5 6 7 8 9 10 11 12 13 14 15

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1 2

PART 2—INCREASED ALLOCATIONS OF NEW

3

CLEAN RENEWABLE ENERGY BONDS AND

4

QUALIFIED ENERGY CONSERVATION BONDS

5 SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW

6 CLEAN RENEWABLE ENERGY BONDS.

7 8 9

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

10 11

‘‘(4) A DDITIONAL LIMITATION .—The national new clean renewable energy bond limitation shall be

12

increased by $1,600,000,000. Such increase shall be 13 14 15

allocated by the Secretary consistent with the rules of paragraphs (2) and (3).’’. SEC. 1612. INCREASED LIMITATION AND EXPANSION OF QUALIFIED ENERGY CONSERVATION BONDS.

(a) INCREASED LIMITATION .—Subsection (e) of section 54D is amended by adding at the end the following new paragraph: ‘‘(4)

A DDITIONAL

LIMITATION .—The

national

qualified energy conservation bond limitation shall be increased by $2,400,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (1), (2), and (3).’’. (b) LOANS AND G RANTS TO IMPLEMENT G REEN HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

C OMMUNITY P ROGRAMS.—

3 4

(1) IN GENERAL.—Subparagraph (A) of section 54D(f)(1) is amended by inserting ‘‘(or loans or grants

5 6 7

for capital expenditures to implement any green community program)’’ after ‘‘Capital expenditures’’.

8

(2) B ONDS TO IMPLEMENT GREEN COMMUNITY

9

PROGRAMS NOT TREATED AS PRIVATE ACTIVITY BONDS FOR

10 11

PURPOSES OF LIMITATIONS ON QUALIFIED ENERGY CONSERVATION BONDS .—Subsection

12 13 14

(e) of section 54D is amended by adding at the end the following new paragraph:

15

‘‘(4) B ONDS TO IMPLEMENT GREEN COMMUNITY PROGRAMS NOT TREATED AS PRIVATE ACTIVITY BONDS.—For

purposes of paragraph (3) and subsection

(f)(2), a bond shall not be treated as a private activity bond solely because proceeds of the issue of which such bond is a part are to be used for loans or grants for capital expenditures to implement any green community program.’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.

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1 2

PART 3—ENERGY CONSERVATION INCENTIVES

3

SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR

4 5

NONBUSINESS ENERGY PROPERTY.

(a) IN G ENERAL.—Section 25C is amended by striking

6

subsections (a) and (b) and inserting the following new 7 8 9

subsections: ‘‘(a) A LLOWANCE OF C REDIT.—In the case of an in-

10

dividual, there shall be allowed as a credit against the tax

11

imposed by this chapter for the taxable year an amount

12

equal to 30 percent of the sum of—

13

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

14 15

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) E XTENSION .—Section 25C(g)(2) is amended by striking ‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. HR 1 PP

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1 2

(c) E FFECTIVE D ATE .—The amendments made by this

3

section shall apply to taxable years beginning after December

4

31, 2008.

5 SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL

6 ENERGY EFFICIENT PROPERTY.

7 8 9

(a) R EMOVAL OF C REDIT LIMITATION FOR P ROPERTY P LACED IN S ERVICE.—

10 11

(1) IN GENERAL.—Paragraph (1) of section 25D(b) is amended to read as follows:

12

‘‘(1) M AXIMUM CREDIT FOR FUEL CELLS.—In the 13 14 15

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) C ONFORMING 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

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2

1 2

with respect to which qualified fuel cell property

3

expenditures are made and which is jointly occupied

4

and used during any calendar year as a residence by

5 6 7

two or more individuals the following rules shall apply: ‘‘(A) M AXIMUM EXPENDITURES FOR FUEL

8 9

CELLS.—The

10

maximum amount of such ex-

penditures which may be taken into account

11

under subsection (a) by all such individuals with 12

respect to such dwelling unit during such calendar

13 14

year shall be $1,667 in the case of each half

15

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) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTER NATIVE FUEL VEHICLE REFUELING PROP ERTY.

(a) IN G ENERAL.—Section 30C(e) is amended by adding at the end the following new paragraph: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(6) S PECIAL RULE FOR PROPERTY PLACED IN

2 3 4

SERVICE DURING 2009 AND 2010.—In

the case of property

placed in service in taxable years beginning after

5 6

December 31, 2008, and before January 1, 2011— ‘‘(A) in the case of any such property which

7

does not relate to hydrogen—

8 9

‘‘(i) subsection (a) shall be applied by

10

substituting ‘50 percent’ for ‘30 percent’,

11

‘‘(ii) subsection (b)(1) shall be applied by 12

substituting ‘$50,000’ for ‘$30,000’, and

13

‘‘(iii) subsection (b)(2) shall be applied

14 15

by substituting ‘$2,000’ for ‘$1,000’, and ‘‘(B) in the case of any such property which relates to hydrogen, subsection (b) shall be applied by substituting ‘$200,000’ for ‘$30,000’.’’. (b) E FFECTIVE D ATE .—The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART 4—ENERGY RESEARCH INCENTIVES SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RE SEARCH.

(a) IN G ENERAL.—Section 41 is amended by redesignating subsection (h) as subsection (i) and by inserting after HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

subsection (g) the following new subsection: ‘‘(h) E NERGY R ESEARCH C REDIT.—In the case of any taxable year beginning in 2009 or 2010—

5

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

6 7

subsection (a)(1) shall be increased by 20 percent of

8

the qualified energy research expenses for the taxable

9

year.

10

‘‘(2)

Q UALIFIED

ENERGY

RESEARCH

EX -

11 PENSES.—For

purposes of this subsection, the term

12 13

‘qualified energy research expenses’ means so much

14

of the taxpayer’s qualified research expenses as are

15

related to the fields of fuel cells and battery technology, renewable energy, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration. ‘‘(3) C OORDINATION WITH OTHER RESEARCH CREDITS.—

‘‘(A) INCREMENTAL CREDIT.—The amount of qualified energy research expenses taken into account under subsection (a)(1)(A) shall not exceed the base amount. ‘‘(B) A LTERNATIVE SIMPLIFIED CREDIT.— For

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2

1 2

purposes of subsection (c)(5), the amount of

3

qualified energy research expenses taken into

4

account for the taxable year for which the credit is

5

being determined shall not exceed—

6

‘‘(i)

7

in

the

case of

8

subsection (c)(5)(A), 50 percent of the

9

average quali

10

fied research expenses for the 3 taxable years

11

preceding the taxable year for which the credit 12

is being determined, and

13

‘‘(ii)

14 15

in

the

case of

subsection (c)(5)(B)(ii), zero. ‘‘(C) B ASIC RESEARCH AND ENERGY RESEARCH CONSORTIUM PAYMENTS.—Any

amount taken into

account under paragraph (1) shall not be taken into account under paragraph (2) or (3) of subsection (a).’’. (b) C ONFORMING A MENDMENT.—Subparagraph (B) of section 41(i)(1)(B), as redesignated by subsection (a), is amended by inserting ‘‘(in the case of the increase in the credit determined under subsection (h), December 31, 2010)’’ after ‘‘December 31, 2009’’.

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1 2

(c) E FFECTIVE D ATE .—The amendments made by this

3

section shall apply to taxable years beginning after December

4

31, 2008.

5 6 7 8 9 10 11 12 13 14 15

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1 2

Subtitle H—Other Provisions

PART

3 1—APPLICATIONOFCERTAINLABOR STANDARDS 4 TO PROJECTS FINANCED WITH CERTAIN 5 TAX-FAVORED BONDS 6 7

SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-

8

FAVORED BONDS.

9 10 11 12

Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of—

13

(1) any qualified clean renewable energy bond (as

14 15

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 HR 1 PP

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1 2

(5) any recovery zone economic development bond

3

(as defined in section 1400U–2 of the Internal Revenue

4

Code of 1986).

5 PART 2—GRANTS TO PROVIDE FINANCING FOR 6 LOW-INCOME HOUSING

7 8

SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUS

9 10 11 12

ING CREDIT ALLOCATIONS FOR 2009.

(a) IN G ENERAL.—The Secretary of the Treasury shall make a grant to the housing credit agency of each State in

13 14 15

an amount equal to such State’s low-income housing grant election amount. (b)

LOW -INCOME

H OUSING

G RANT

E LECTION A MOUNT.—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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) 40 percent of the State housing credit

2 3

ceiling for 2009 which is attributable to amounts

4

described in clauses (ii) and (iv) of such section,

5

multiplied by

6

(2) 10.

7

(c) S UBAWARDS FOR LOW -INCOME B UILDINGS.—

8 9 10 11

(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

12 13

acquisition and rehabilitation of qualified low-income

14

buildings. A subaward under this section may be made

15

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 HR 1 PP

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1

2

2

for such credits before the agency makes such

3

subawards.

4

(2) S UBAWARDS SUBJECT TO SAME REQUIREMENTS

5 6

AS LOW -INCOME HOUSING CREDIT ALLOCA TIONS.—Any

7

such subaward with respect to any qualified

8

low-income building shall be made in the same manner

9

and shall be subject to the same limitations (including

10

rent, income, and use restrictions on such building) as

11

an allocation of housing credit dollar amount allocated 12 13

by such State housing credit agency under section 42

14

of the Internal Revenue Code of 1986, except that

15

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) C OMPLIANCE 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

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1

2

2

recipient to cover expenses associated with the

3

performance of its duties under this paragraph. The

4

State housing credit agency may retain an agent or

5 6 7

other private contractor to satisfy the requirements of this paragraph. (4) R ECAPTURE.—The State housing credit

8 9 10

agency shall impose conditions or restrictions, in cluding a requirement providing for recapture, on any

11

subaward under this section so as to assure that the 12 13

building with respect to which such subaward is made

14

remains a qualified low-income building during the

15

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) R ETURN OF U NUSED G RANT 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

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2

1 2

amounts returned to the Secretary of the Treasury under this

3

subsection shall be deposited in the general fund of the

4

Treasury.

5

(e) D EFINITIONS.—Any term used in this section which

6 7

is also used in section 42 of the Internal Revenue Code of

8

1986 shall have the same meaning for purposes of this

9

section as when used in such section 42. Any reference in

10

this section to the Secretary of the Treasury shall be treated

11

as including the Secretary’s delegate. 12

(f) A PPROPRIATIONS.—There is hereby appropriated to

13 14

the Secretary of the Treasury such sums as may be necessary

15

to carry out this section. PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

(a) IN G ENERAL.—Upon application, the Secretary of Energy shall, within 60 days of the application and subject to the requirements of this section, provide a grant to each person who places in service specified energy property during 2009 or 2010 to reimburse such person for a portion of the expense of such facility as provided in subsection (b). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(b) G RANT A MOUNT.—

3 4

(1) IN

GENERAL.—The

amount of the grant under

subsection (a) with respect to any specified

energy

5

property shall be the applicable percentage of the basis 6 7

of such facility. (2) A PPLICABLE

8 9 10

PERCENTAGE .—For

purposes

of

paragraph (1), the term ‘‘applicable percentage’’ means—

11

(A) 30 percent in the case of any property

12

described in paragraphs (1) through (4) of sub-

13

section (c), and

14 15

(B) 10 percent in the case of any other property. (3) D OLLAR LIMITATIONS.—In the case of property described in paragraph (2), (6), or (7) of subsection (c), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) S PECIFIED E NERGY P ROPERTY .—For purposes of this section, the term ‘‘specified energy property’’ means any of the following: HR 1 PP

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2

1

(1) Q UALIFIED FACILITIES.—Any facility described

2 3 4

in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of the Internal Revenue Code of 1986.

5

(2) Q UALIFIED FUEL CELL PROPERTY .—Any qualified

6 7

fuel cell property (as defined in section 48(c)(1) of such

8

Code).

9 10

(3) S OLAR PROPERTY .—Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code.

11

(4) Q UALIFIED SMALL WIND ENERGY PROP12 13 14

ERTY .—Any

qualified small wind energy property (as

defined in section 48(c)(4) of such Code).

15

(5)

G EOTHERMAL

PROPERTY .—Any

property

described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Q UALIFIED

MICROTURBINE PROPERTY .—

Any

qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) C OMBINED HEAT AND POWER SYSTEM PROPERTY .—Any

combined heat and power system

property (as defined in section 48(c)(3) of such Code).

(8) G EOTHERMAL

HEATPUMP

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PROPERTY .—Any

2

1 2

property

3 4

described

in

clause

(vii)

o f

section 48(a)(3)(A) of such Code. (d) A PPLICATION OF C ERTAIN R ULES.—In making

5 6

grants under this section, the Secretary of Energy shall

7

apply rules similar to the rules of section 50 of the Internal

8

Revenue Code of 1986. In applying such rules, if the

9

facility is disposed of, or otherwise ceases to be a qualified

10

renewable energy facility, the Secretary of Energy shall

11

provide for the recapture of the appropriate percentage of 12 13 14 15

the grant amount in such manner as the Secretary of Energy determines appropriate. (e) E XCEPTION FOR C ERTAIN N ON -T AXPAYERS.— The Secretary of Energy shall not make any grant under this section to any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof) or any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code. (f) D EFINITIONS.—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

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1

2

2

reference in this section to the Secretary of the Treasury

3

shall be treated as including the Secretary’s delegate.

4

(g) C OORDINATION B ETWEEN D EPARTMENTS OF

5 6

T REASURY AND E NERGY .—The Secretary of the Treasury

7

shall provide the Secretary of Energy with such technical

8

assistance as the Secretary of Energy may require in car-

9

rying out this section. The Secretary of Energy shall provide

10

the Secretary of the Treasury with such information as the

11

Secretary of the Treasury may require in carrying out the 12 13

amendment made by section 1604.

14

(h) A PPROPRIATIONS.—There is hereby appropriated to

15

the Secretary of Energy such sums as may be necessary to carry out this section. (i) T ERMINATION .—The Secretary of Energy shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS ACT SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RE LATED EFFECTS OF THIS ACT.

On February 1, 2010, and every 3 months thereafter in calendar year 2010, the Comptroller General of the United HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

States shall submit to the Committee on Ways and Means a

3

written report on the most recent national (and,

4

where

available, State-by-State) information on—

5

(1) the economic effects of this Act;

6

(2) the employment effects of this Act, includ-

7 8

ing—

9

(A) a comparison of the number of jobs

10

preserved and the number of jobs created as a result

11

of this Act; and

12

(B) a comparison of the numbers of jobs

13 14

preserved and the number of jobs created in each of

15

the public and private sectors; (3) the share of tax and non-tax expenditures provided under this Act that were spent or saved, by group and income class; (4) how the funds provided to States under this Act have been spent, including a breakdown of— (A) funds used for services provided to citi zens; and (B) wages and other compensation for public employees; and (5) a description of any funds made available under this Act that remain unspent, and the reasons why. HR 1 PP

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2

1 2

TITLE II—ASSISTANCE FOR UN-

3

EMPLOYED WORKERS AND STRUGGLING FAMILIES

4 5

SEC. 2000. SHORT TITLE.

6 7 8

This title may be cited as the ‘‘Assistance for Unemployed Workers and Struggling Families Act’’.

9

Subtitle A—Unemployment

10

Insurance

11

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT

12 COMPENSATION PROGRAM.

13 14 15

(A) IN G ENERAL.—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 ’’;

2009 ’’

and inserting ‘‘ DECEMBER 31,

and

(3) in subsection (b)(3), by striking ‘‘August 27, 2009’’ and inserting ‘‘May 31, 2010’’.

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2

1 2 3 4

(b) FINANCING P ROVISIONS.—Section 4004 of such Act is amended by adding at the end the following: ‘‘(e) T RANSFER OF FUNDS.—Notwithstanding any other

5 6

provision of law, the Secretary of the Treasury shall transfer

7

from the general fund of the Treasury (from

8

otherwise appropriated)—

9 10

funds not

‘‘(1) to the extended unemployment compensation account (as established by section 905 of the Social

11

Security Act) such sums as the Secretary of Labor 12 13

estimates to be necessary to make payments to States

14

under this title by reason of the amendments made by

15

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

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2

1 2 3

to be repaid.’’. SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION

4 5

BENEFITS.

(a) FEDERAL-S TATE A GREEMENTS.—Any State which

6 7 8 9 10 11

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

12

Secretary, terminate such agreement. 13 14

(b) P ROVISIONS OF A GREEMENT.— (1) A DDITIONAL COMPENSATION .—Any agreement

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

determined under the State law (before the application

3

of this paragraph) plus an additional $25.

4

(2) A LLOWABLE

METHODS

OF

PAYMENT.—Any

5 6 7

additional compensation provided for in accordance with paragraph (1) shall be payable either— (A) as an amount which is paid at the same

8 9

time and in the same manner as any regular

10

compensation otherwise payable for the week

11

involved; or 12

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

13 14

which are made separately from, but on the same

15

weekly basis as, any regular compensation otherwise payable. (c) N ONREDUCTION R ULE .—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

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2

1 2

additional amounts attributable to the modification

3

described in subsection (b)(1)) will be less than

4

(2) the average weekly benefit amount of regular

5 6

compensation which would otherwise have been

7

payable during such period under the State law, as in

8

effect on December 31, 2008.

9

(d) P AYMENTS TO S TATES.—

10

(1) IN GENERAL.—

11

(A) FULL

REIMBURSEMENT .—There

shall be

12

paid to each State which has entered into an

13 14

agreement under this section an amount equal to

15

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) T ERMS OF PAYMENTS.—Sums payable to any State by reason of such State’s having an agreement under this section shall be payable, HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

either in advance or by way of reimburse

3

ment (as determined by the Secretary), in such

4

amounts as the Secretary estimates the State will be

5

entitled to receive under this section for

6

each

7

calendar month, reduced or increased, as the case

8

may be, by any amount by which the Secretary

9

finds that his estimates for any prior calendar month

10

were greater or less than the amounts which should

11

have been paid to the State. Such estimates may be 12

made on the basis of such statistical, sampling, or

13 14

other

method as may be agreed upon by the

15

Secretary

and the State agency of the State

involved. (2)

C ERTIFICATIONS.—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) A PPROPRIATION .—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) A PPLICABILITY .— (1) IN GENERAL.—An agreement entered into HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under this section shall apply to weeks of unemploy-

3

ment—

4

(A) beginning after the date on which such

5

agreement is entered into; and

6 7

(B) ending before January 1, 2010.

8

(2) T RANSITION RULE FOR INDIVIDUALS RE

9 MAINING ENTITLED TO REGULAR COMPENSATION AS OF

10 JANUARY 1, 2010 .—In

the case of any individual who,

11 12

as of the date specified in paragraph (1)(B), has not

13

yet exhausted all rights to regular compensation under

14

the State law of a State with respect to a benefit year

15

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) T ERMINATION .—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) F RAUD

AND

O VERPAYMENTS.—The provisions of

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2

1 2

section 4005 of the Supplemental Appropriations Act, 2008

3

(Public Law 110–252; 122 Stat. 2356) shall apply

4

with

respect to additional compensation (as described in

5 6 7 8 9

subsection (b)(1)) to the same extent and in the same manner as in the case of emergency unemployment compensation. (g) A PPLICATION TO O THER U NEMPLOYMENT B ENEFITS.—

10

(1) IN GENERAL.—Each agreement under this

11

section shall include provisions to provide that the 12 13

purposes of the preceding provisions of this section

14

shall be applied with respect to unemployment benefits

15

described in subsection (h)(3) to the same extent and in the same manner as if those benefits were regular compensation. (2)

E LIGIBILITY

AND

TERMINATION

RULES .—

Additional compensation (as described in subsection (b)(1))— (A) shall not be payable, pursuant to this subsection, with respect to any unemployment benefits described in subsection (h)(3) for any week beginning on or after the date specified in subsection (e)(1)(B), except in the case of an

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2

1 2

individual who was eligible to receive additional

3

compensation (as so described) in connection

4

with any regular compensation or any unem-

5

ployment benefits described in subsection (h)(3)

6 7

for any period of unemployment ending before

8

such date; and

9

(B) shall in no event be payable for any

10

week beginning after the date specified in sub-

11

section (e)(3). 12 13

(h) D ISREGARD OF A DDITIONAL C OMPENSATION FOR

14

P URPOSES OF M EDICAID AND SCHIP.—The monthly

15

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) D EFINITIONS.—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 comHR 1 PP

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2

1 2

pensation’’ means emergency unemployment com-

3

pensation under title IV of the Supplemental Appro-

4

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

5 6

2353); and

7

(3) any reference to unemployment benefits de-

8

scribed in this paragraph shall be considered to refer

9

to—

10

(A) extended compensation (as defined by

11

section 205 of the Federal-State Extended Un12

employment Compensation Act of 1970); and

13 14

(B) unemployment compensation (as defined

15

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 G ENERAL.—Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

the

2

1 2

making of unemployment compensation modernization

3

incentive payments (hereinafter ‘incentive payments’) to

4

the accounts of the States in the Unemployment Trust Fund,

5 6

by transfer from amounts reserved for that purpose in the

7

Federal unemployment account, in accordance with

8

succeeding provisions of this subsection.

9 10

‘‘(B) The maximum incentive payment allowable under this subsection with respect to any State shall, as

11

determined by the Secretary of Labor, be equal to the 12 13

amount obtained by multiplying $7,000,000,000 by the

14

same ratio as would apply under subsection (a)(2)(B) for

15

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

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2

1 2

account of such State upon a certification under

3

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

4

the requirements of paragraph (3).

5 6 7

‘‘(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

8 9 10

recently completed calendar quarter before the start of the benefit year for purposes of determining eligibility

11

for unemployment compensation; or 12

‘‘(B) provides that, in the case of an individual

13 14

who would not otherwise be eligible for unemploy

15

ment 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

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2

1 2

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

3

cause such individual is seeking only part-time work

4

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

5 6

State law provisions carrying out this subparagraph

7

may exclude an individual if a majority of the weeks of

8

work in such individual’s base period do not include

9

part-time work (as so defined).

10

‘‘(B) An individual shall not be disqualified from

11

regular unemployment compensation for separating 12 13

from employment if that separation is for any

14

compelling family reason. For purposes of this sub-

15

paragraph, 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

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2

1 2

the individual’s immediate family (as those terms

3

are defined by the Secretary of Labor).

4

‘‘(iii) The need for the individual to accom-

5

pany such individual’s spouse—

6

‘‘(I) to a place from which it is im-

7 8

practical for such individual to commute;

9

and

10

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

11

spouse’s employment. 12

‘‘(C) Weekly unemployment compensation is

13 14

payable under this subparagraph to any individual who

15

is unemployed (as determined under the State unemployment compensation law), has exhausted all rights to regular unemployment compensation under the State law, and is enrolled and making satisfactory progress in a State-approved training program or in a job training program authorized under the Workforce Investment Act of 1998. Such programs shall prepare individuals who have been separated from a declining occupation, or who have been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual’s

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2

1 2

place of employment, for entry into a high-demand

3

occupation. The amount of unemployment

4

compensation payable under this subparagraph to an

5 6

individual for a week of unemployment shall be equal

7

to the individual’s average weekly benefit amount

8

(including dependents’ allowances) for the most recent

9

benefit year, and the total amount of unemployment

10

compensation payable under this subparagraph to any

11

individual shall be equal to at least 26 times the 12 13

individual’s average weekly benefit amount (including

14

dependents’ allowances) for the most recent benefit

15

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

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2

1 2

individual’s weekly benefit amount for the benefit

3

year, whichever is less).

4

‘‘(4)(A) Any State seeking an incentive payment

5 6

under this subsection shall submit an application therefor at

7

such time, in such manner, and complete with such in-

8

formation as the Secretary of Labor may within 60 days

9

after the date of the enactment of this subsection prescribe

10

(whether by regulation or otherwise), including information

11

relating to compliance with the requirements of paragraph 12 13

(2) or (3), as well as how the State intends to use the

14

incentive payment to improve or strengthen the State’s

15

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

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1

2

2

the Secretary of the Treasury, together with a certification

3

as to the amount of the incentive payment to be transferred

4

to the State account pursuant to that finding. The Secretary

5 6 7 8 9 10

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 con-

11

sidered to be in effect as of the date of such certification. 12 13

‘‘(C)(i) No certification of compliance with the re-

14

quirements of paragraph (2) or (3) may be made with re-

15

spect 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 in-

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2

1 2

centive payments under this subsection are made before

3

October 1, 2011.

4

‘‘(5)(A) Except as provided in subparagraph (B), any

5 6

amount transferred to the account of a State under this

7

subsection may be used by such State only in the payment

8

of cash benefits to individuals with respect to their unem-

9

ployment (including for dependents’ allowances and for

10

unemployment compensation under paragraph (3)(C)), ex-

11

clusive of expenses of administration. 12 13

‘‘(B) A State may, subject to the same conditions as

14

set forth in subsection (c)(2) (excluding subparagraph (B)

15

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

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2

1 2

under section 902, 910, or 1203 of the amount in the

3

Federal unemployment account as of any given time. Any

4

amount so reserved for which the Secretary of the Treasury

5 6

has not received a certification under paragraph (4)(B) by

7

the deadline described in paragraph (4)(C)(iii) shall, upon

8

the close of fiscal year 2011, become unrestricted as to use

9

as part of the Federal unemployment account.

10

‘‘(7) For purposes of this subsection, the terms ‘benefit

11

year’, ‘base period’, and ‘week’ have the respective 12 13

meanings given such terms under section 205 of the Fed-

14

eral-State Extended Unemployment Compensation Act of

15

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 Sec-

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2

1 2

retary of the Treasury) be equal to the amount obtained by

3

multiplying $500,000,000 by the same ratio as determined

4

under subsection (f)(1)(B) with respect to such State.

5 6

‘‘(3) Any amount transferred to the account of a State

7

as a result of the enactment of this subsection may be used

8

by the State agency of such State only in the payment of

9

expenses incurred by it for—

10

‘‘(A) the administration of the provisions of its

11

State law carrying out the purposes of subsection (f)(2) 12 13

or any subparagraph of subsection (f)(3); ‘‘(B) improved outreach to individuals who might

14 15

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) R EGULATIONS.—The Secretary of Labor may prescribe any regulations, operating instructions, or other

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2

1 2

guidance necessary to carry out the amendment made by

3

subsection (a).

4

Subtitle B—Assistance for Vulnerable Individuals

5 6 7

SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

8

(a) IN G ENERAL.—Section 403 of the Social Security Act

9

(42 U.S.C. 603) is amended by adding at the end the

10

following:

11 12

‘‘(c) E MERGENCY FUND .—

13 14

‘‘(1) E STABLISHMENT.—There is established in the Treasury of the United States a fund which shall be

15

known as the ‘Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs’ (in this subsection referred to as the ‘Emergency Fund’). ‘‘(2) D EPOSITS INTO

FUND .—Out

of any money in

the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for payment to the Emergency Fund. ‘‘(3) G RANTS.— ‘‘(A) G RANT RELATED TO CASELOAD IN CREASES.—

‘‘(i) IN

GENERAL.—For

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each calendar

2

1 2

quarter in fiscal year 2009 or 2010, the

3

Secretary shall make a grant from the

4

Emergency Fund to each State that—

5

‘‘(I) requests a grant under this

6 7

subparagraph for the quarter; and ‘‘(II)

8

meets the requirement of clause (ii) for

9

the quarter.

10

‘‘(ii) C ASELOAD INCREASE REQUIRE-

11 MENT.—A

State meets the requirement of

12

this clause for a quarter if the average

13 14

monthly assistance caseload of the State for

15

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) A MOUNT OF GRANT.—Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be 80 percent of the amount (if any) by which the total expenditures of the State for basic assistance (as defined by the Secretary) in the quarter, whether under the

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2

1 2

State program funded under this part or as

3

qualified State expenditures, exceeds the

4

total expenditures of the State for such

5

assistance for the corresponding quarter in

6 7

the emergency fund base year of the State.

8

‘‘(B) G RANT

9

PENDITURES FOR

10

RELATED TO INCREASED EX NON -RECURRENT

SHORT TERM

BENEFITS.—

11

‘‘(i) IN

GENERAL.—For

each calendar

12

quarter in fiscal year 2009 or 2010, the

13 14

Secretary shall make a grant from the

15

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) N ON -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

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2

1 2

funded under this part or as qualified State

3

expenditures, exceeds the total such

4

expenditures of the State for non-recurrent

5

short term benefits in the corresponding

6 7

quarter in the emergency fund base year of

8

the State.

9

‘‘(iii) A MOUNT OF GRANT.—Subject to

10

paragraph (5), the amount of the grant to be

11

made to a State under this subparagraph for a 12

quarter shall be an amount equal to 80

13 14

percent of the excess described in clause

15

(ii). ‘‘(C) G RANT RELATED TO INCREASED EX PENDITURES 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.

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2

1

‘‘(ii) S UBSIDIZED EMPLOYMENT EX -

2 3

PENDITURE

4

REQUIREMENT.—A

State meets

the requirement of this clause for a quarter if

5

the total expenditures of the State for

6 7

subsidized employment in the quarter,

8

whether under the State program funded

9

under this part or as qualified State

10

expenditures, exceeds the total of such

11

expenditures of the State in the cor12

responding quarter in the emergency fund

13

base year of the State.

14 15

‘‘(iii) A MOUNT 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) A UTHORITY 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, nonrecurrent short-term benefits, and subsidized em-

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2

1 2

ployment, during any period for which the State re-

3

quests funds under this subsection, and during the

4

emergency fund base year of the State, the Secretary

5 6

may make appropriate adjustments to the data to

7

ensure that the data reflect expenditures under the

8

State program funded under this part and qualified

9

State expenditures. The Secretary may develop a

10

mechanism for collecting expenditure data, including

11

procedures which allow States to make reasonable 12 13 14

estimates, and may set deadlines for making revisions to the data.

15

‘‘(5) LIMITATION .—The total amount payable to a single State under subsection (b) and this subsection for a fiscal year shall not exceed 25 percent of the State family assistance grant. ‘‘(6) LIMITATIONS

ON USE OF FUNDS .—A

State to

which an amount is paid under this subsection may use the amount only as authorized by section 404. ‘‘(7) T IMING OF IMPLEMENTATION .—The Secretary shall implement this subsection as quickly as reasonably possible, pursuant to appropriate guidance to States.

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2

1

‘‘(8) D EFINITIONS.—In this subsection:

2 3

‘‘(A)

4

A VERAGE

CASELOAD .—The

MONTHLY

ASSISTANCE

term ‘average monthly assist-

5

ance caseload’ means, with respect to a State and 6

a quarter, the number of families receiving

7 8

assistance during the quarter under the State

9

program funded under this part or as qualified

10

State expenditures, subject to adjustment under

11

paragraph (4).

12

‘‘(B) E MERGENCY FUND BASE YEAR.— ‘‘(i)

13 14

IN GENERAL.—The term ‘emergency fund

15

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)

C ATEGORIES

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

State for non-recurrent short term

3

benefits, whether under the State pro-

4

gram funded under this part or as

5

qualified State expenditures.

6 7

‘‘(III) The total expenditures of the

8

State for subsidized employment, whether

9

under the State program funded under

10

this

part

or

as

qualified

State

11

expenditures. 12

‘‘(C) Q UALIFIED STATE EXPENDITURES.— The

13 14

term ‘qualified State expenditures’ has the meaning

15

given the term in section 409(a)(7).’’. (b) T EMPORARY M ODIFICATION OF C ASELOAD R E DUCTION

C REDIT.—Section 407(b)(3)(A)(i) of such Act (42

U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or if the immediately preceding fiscal year is fiscal year 2009 or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(8)(B)))’’ before ‘‘under the State’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall take effect on the date of the enactment of this

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2

1 2 3

Act. SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPI

4 5

ENTS.

(a) P AYMENT A UTHORITY .—

6

(1) IN GENERAL.—At the earliest practicable date 7 8

in calendar year 2009 but not later than 120 days after

9

the date of the enactment of this section, the

10

Commissioner of Social Security shall make a

11

one-time payment to each individual who is determined

12

by the Commissioner in calendar year 2009 to be an

13 14

individual who— (A) is entitled to a cash benefit under the

15

supplemental security income program under title XVI of the Social Security Act (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the calendar month in

which the first

payment under this section is to be made; or (B)(i) was entitled to such a cash benefit (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the 2-month period preceding that calendar month; and (ii) whose entitlement to that benefit ceased in that 2-month period solely because the income HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of the individual (and the income of the spouse, if

3

any, of the individual) exceeded the applicable

4

income limit described in paragraph (1)(A) or

5

(2)(A) of section 1611(a) of such Act.

6

(2) A MOUNT

7

OF PAYMENT.—Subject

to subsection

8

(b)(1) of this section, the amount of the payment shall

9

be—

10

(A) in the case of an individual eligible for

11

a payment under this section who does not have

12

a spouse eligible for such a payment, an amount

13 14

equal to the average of the cash benefits payable

15

in the aggregate under section 1611 or 1619(a) of the Social Security Act to eligible individuals who do not have an eligible spouse, for the most recent month for which data on payment of the benefits are available, as determined by the Commissioner of Social Security; or (B) in the case of an individual eligible for a payment under this section who has a spouse eligible for such a payment, an amount equal to the average of the cash benefits payable in the aggregate under section 1611 or 1619(a) of the Social Security Act to eligible individuals who have HR 1 PP

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2

1 2

an eligible spouse, for the most recent month for

3

which data on payment of the benefits are available,

4

as so determined.

5 6

(b) A DMINISTRATIVE P ROVISIONS.— (1) A UTHORITY TO WITHHOLD PAYMENT TO RECOVER

7 8

PRIOR OVERPAYMENT OF SSI BENEFITS.—

9

Commissioner of Social Security may withhold part or

10 11

The

all of a payment otherwise required to be made under subsection (a) of this section to an individual, in order

12 13

to recover a prior overpayment of benefits to the

14

individual under the supplemental security income

15

program under title XVI of the Social Security Act, subject to the limitations of section 1631(b) of such Act. (2) P AYMENT TO BE DISREGARDED IN DETERMINING UNDERPAYMENTS UNDER THE SSI PROGRAM .—A

payment

under subsection (a) shall be disregarded in determining whether there has been an underpayment of benefits under the supplemental security income program under title XVI of the Social Security Act. (3) N ONASSIGNMENT.—The provisions of section 1631(d) of the Social Security Act shall apply with respect to payments under this section to the same HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

extent as they apply in the case of title XVI of such

3

Act.

4

(c) P AYMENTS T O B E D ISREGARDED FOR P URPOSES OF

5 6

A LL FEDERAL AND FEDERALLY A SSISTED P ROGRAMS.—A

7

payment under subsection (a) shall not be regarded as

8

income to the recipient, and shall not be regarded as a

9

resource of the recipient for the month of receipt and the

10

following 6 months, for purposes of determining the

11

eligibility of any individual for benefits or assistance, or the 12 13

amount or extent of benefits or assistance, under any

14

Federal program or under any State or local program

15

financed in whole or in part with Federal funds. (d) A PPROPRIATION .—Out of any sums in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary to carry out this section. SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

During the period that begins with October 1, 2008, and ends with September 30, 2010, section 455(a)(1) of the Social Security Act shall be applied and administered as if the phrase ‘‘from amounts paid to the State under section 458 or’’ did not appear in such section. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

TITLE III—HEALTH INSURANCE 2 ASSISTANCE

3

FOR THE UNEM

PLOYED 4

SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF

5

TITLE.

6(a) S HORT T ITLE OF T ITLE.—This title may be cited 7 as the ‘‘Health Insurance Assistance for the Unemployed 8 Act of 2009’’. 9(b) T ABLE OF C ONTENTS OF T ITLE.—The table of 10 contents of this title is as follows: Sec. 3001. Short title and table of contents of title. Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA benefits for older or long-term employees. Sec. 3003. Temporary optional Medicaid coverage for the unemployed.

11

SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS

12 AND EXTENSION OF COBRA BENEFITS FOR 13 OLDER OR LONG-TERM EMPLOYEES. 14(a) P REMIUM A SSISTANCE FOR COBRA C ONTINU 15 16

ATION

C OVERAGE FOR INDIVIDUALS AND T HEIR FAMI

LIES.—

17(1) P ROVISION OF PREMIUM ASSISTANCE.— 18(A)R EDUCTIONOFPREMIUMSPAY 19 ABLE.—In the case of any premium for a pe 20riod of coverage beginning on or after the date

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2

1 2

21of the enactment of this Act for COBRA con

3

22tinuation coverage with respect to any assist

4

23ance eligible individual, such individual shall be treated for purposes of any COBRA continuation provision as having paid the amount of such premium if such individual pays 35 percent of the amount of such premium (as determined without regard to this subsection). (B) P REMIUM REIMBURSEMENT.—For pro-

5 6 7 8 9

visions providing the balance of such premium,

10

see section 6431 of the Internal Revenue Code of

11 12

1986, as added by paragraph (12).

13

(2) LIMITATION OF PERIOD OF PREMIUM AS-

14

SISTANCE .—

15

(A) IN GENERAL.—Paragraph (1)(A) shall not apply with respect to any assistance eligible individual for months of coverage beginning on or after the earlier of— (i) the first date that such individual is eligible for coverage under any other group health plan (other than coverage consisting of only dental, vision, counseling, or referral services (or a combination thereof), coverage under a health reimbursement arrangement or a health flexible spending arrangement, or

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2

1 2

coverage of treatment that is furnished in an

3

on-site medical facility maintained by the em

4

ployer and that consists primarily of first- aid

5

services, prevention and wellness care,

6

or

7

similar care (or a combination thereof)) or is

8

eligible for benefits under title XVIII of the

9

Social Security Act, or

10

(ii) the earliest of—

11

(I) the date which is 12 months

12

after the first day of the first month that

13 14

paragraph (1)(A) applies with respect to

15

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) T IMING OF ELIGIBILITY FOR ADDITIONAL COVERAGE .—For

purposes of subparagraph (A)(i),

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2

1 2

an individual shall not be treated as eligible for

3

coverage under a group health plan before the

4

first date on which such individual could be

5

covered under such plan.

6

(C)

7

N OTIFICATION

8

REQUIREMENT.—An

9

shall notify in writing the group health plan with

10

assistance eligible individual

respect to which paragraph (1)(A) applies if such

11

paragraph ceases to apply by reason of 12

subparagraph (A)(i). Such notice shall be

13 14

provided to the group health plan in such time and

15

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

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2

1

(C) the qualifying event with respect to the

2 3

COBRA continuation coverage consists of the

4

involuntary termination of the covered employee’s

5

employment and occurred during such period.

6

(4) E XTENSION OF ELECTION PERIOD AND EFFECT ON

7 8

COVERAGE.—

9

(A) IN GENERAL.—Notwithstanding section

10

605(a) of the Employee Retirement Income

11

Security Act of 1974, section 4980B(f)(5)(A) of 12

the Internal Revenue Code of 1986, section

13 14

2205(a) of the Public Health Service Act, and

15

section 8905a(c)(2) of title 5, United States Code, in the case of an individual who is a qualified beneficiary described in paragraph (3)(A) as of the date of the enactment of this Act and has not made the election referred to in paragraph (3)(B) as of such date, such individual may elect the COBRA continuation coverage under the COBRA continuation coverage provisions containing such sections during the 60-day period commencing with the date on which the notification required under paragraph (7)(C) is provided to such

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2

1

individual.

2 3

(B) C OMMENCEMENT OF COVERAGE; NO

4

REACH -BACK .—Any

COBRA continuation cov-

5

erage elected by a qualified beneficiary during an

6 7

extended election period under subparagraph

8

(A)—

9

(i) shall commence on the date of the

10

enactment of this Act, and

11

(ii) shall not extend beyond the period 12

of COBRA continuation coverage that

13 14

would have been required under the appli-

15

cable COBRA continuation coverage provision if the coverage had been elected as required under such provision. (C) P REEXISTING CONDITIONS.—With respect to a qualified beneficiary who elects COBRA continuation coverage pursuant to subparagraph (A), the period— (i) beginning on the date of the qualifying event, and (ii) ending with the day before the date of the enactment of this Act, shall be disregarded

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2

1 2

for purposes of determining the 63-day periods

3

referred to in section 701)(2) of the Employee

4

Retirement Income Security Act of 1974, section

5

9801(c)(2) of the Internal Revenue Code of 1986,

6 7

and section 2701(c)(2) of the Public Health

8

Service Act.

9

(5) E XPEDITED REVIEW OF DENIALS OF PREMIUM

10

ASSISTANCE .—In

any case in which an individual

11

requests treatment as an assistance eligible individual 12 13

and is denied such treatment by the group health plan

14

by reason of such individual’s ineligi bility for COBRA

15

continuation coverage, the Secretary of Labor (or the Secretary of Health and Human services in connection with COBRA continuation coverage which is provided other than pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974), in consultation with the Secretary of the Treasury, shall provide for expedited review of such denial. An individual shall be entitled to such review upon application to such Secretary in such form and manner as shall be provided by such Secretary. Such Secretary shall make a determination regarding such

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2

1 2

individual’s eligibility within 10 business days after

3

receipt of such individual’s application for review

4

under this paragraph.

5

(6) D ISREGARD OF SUBSIDIES FOR PURPOSES OF

6 7

FEDERAL AND STATE PROGRAMS.—Notwithstanding

any

8

other provision of law, any premium reduction with

9

respect to an assistance eligible individual under this

10

subsection shall not be considered income or resources

11

in determining eligibility for, or the amount of 12 13

assistance or benefits provided under, any other public

14

benefit provided under Federal law or the law of any

15

State or political subdivision thereof. (7) N OTICES TO INDIVIDUALS.— (A) G ENERAL NOTICE.— (i) IN GENERAL.—In the case of notices provided under section 606(4) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the Internal Revenue Code of 1986, section 2206(4) of the Public Health Service Act (42 U.S.C. 300bb- 6(4)), or section 8905a(f)(2)(A) of title 5, United States Code, with respect to individuals who, HR 1 PP

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2

1 2

during the period described in paragraph

3

(3)(A), become entitled to elect COBRA

4

continuation coverage, such notices shall

5

include an additional notification to the

6 7

recipient of the availability of premium

8

reduction with respect to such coverage

9

under this subsection.

10

(ii) A LTERNATIVE NOTICE.—In the case

11

of COBRA continuation coverage to which 12

the notice provision under such sections does

13 14

not apply, the Secretary of Labor, in

15

consultation with the Secretary of the Treasury and the Secretary of Health and Human Services, shall, in co ordination 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

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2

1 2

notice forms or by inclusion of a separate

3

document with the notice otherwise

4

required.

5

(B) S PECIFIC REQUIREMENTS.—Each ad-

6 7

ditional notification under subparagraph (A) shall

8

include—

9

(i) the forms necessary for establishing

10

eligibility for premium reduction under this

11

subsection, 12

(ii) the name, address, and telephone

13 14

number necessary to contact the plan ad-

15

ministrator 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

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2

1 2

eligibility for benefits under title XVIII of

3

the Social Security Act and the penalty

4

provided for failure to so notify the plan, and

5 6 7

(v) a description, displayed in a

8

prominent manner, of the qualified bene-

9

ficiary’s right to a reduced premium and any

10

conditions on entitlement to the reduced

11

premium. 12

(C) N OTICE RELATING TO RETROACTIVE

13 14

COVERAGE .—In

the case of an individual described

15

in paragraph (3)(A) who has elected COBRA continuation coverage as of the date of enactment of this Act or an individual described in paragraph (4)(A), the administrator of the group health plan (or other entity) involved shall provide (within 60 days after the date of enactment of this Act) for the additional notification required to be provided under subparagraph (A). (D) M ODEL NOTICES.—Not later than 30 days after the date of enactment of this Act,

the

Secretary of the Labor, in consultation with the

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2

1 2

Secretary of the Treasury and the Secretary of

3

Health and Human Services, shall prescribe models

4

for the additional notification required under this

5

paragraph.

6 7

(8) S AFEGUARDS.—The Secretary of the Treasury

8

shall provide such rules, procedures, regulations, and

9

other guidance as may be necessary and appropriate to

10

prevent fraud and abuse under this subsection.

11

(9) O UTREACH .—The Secretary of Labor, in 12 13

consultation with the Secretary of the Treasury and the

14

Secretary of Health and Human Services, shall provide

15

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 en rollment, shall also be made available on website of the

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2

1 2

Departments of Labor, Treasury, and Health and Human

3

Services.

4

(10) D EFINITIONS.—For purposes of this sub-

5 6

section— (A) A DMINISTRATOR.—The term ‘‘admin-

7 8

istrator’’ has the meaning given such term in

9

section 3(16) of the Employee Retirement Income

10

Security Act of 1974.

11

(B) COBRA

CONTINUATION COVERAGE .—

12

The term ‘‘COBRA continuation coverage’’

13 14

means continuation coverage provided pursuant

15

to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (other than under section 609), title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986 (other than subsection (f)(1) of such section insofar as it relates to pediatric vaccines), or section 8905a of title 5, United States Code, or under a State program that provides continuation coverage comparable to such continuation coverage. Such term does not include coverage under a health flexible spending

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2

1

arrangement.

2 3

(C) COBRA

4

CONTINUATION PROVISION .—

The term ‘‘COBRA continuation provision’’

5

means the provisions of law described in sub-

6 7

paragraph (B).

8

(D)

9

C OVERED

EMPLOYEE .—The

term

‘‘covered employee’’ has the meaning given such

10

term in section 607(2) of the Employee Retirement

11

Income Security Act of 1974. 12

(E)

13

Q UALIFIED

BENEFICIARY .—The

term

14

‘‘qualified beneficiary’’ has the meaning given such

15

term in section 607(3) of the Employee Retirement Income Security Act of 1974. (F) G ROUP 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) S TATE .—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.

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2

1

(11) R EPORTS.—

2 3

(A) INTERIM

4

REPORT.—The

Secretary of the

Treasury shall submit an interim report to

the

5

Committee on Education and Labor, the Committee 6

on Ways and Means, and the Committee on Energy

7 8

and Commerce of the House of Representatives and

9

the Committee on Health, Education, Labor, and

10

Pensions and

11

the Committee on Finance of the

Senate regarding the premium reduction provided

12

under this subsection that includes—

13 14

(i) the number of individuals provided

15

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 HR 1 PP

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2

1

includes—

2 3

(i) the number of individuals provided

4

premium reduction under this section;

5

(ii)

6

the

average

dollar

7

amount (monthly and annually) of premium

8

reductions provided to such individuals; and

9

(iii) the total amount of expenditures

10

incurred (with administrative expenditures

11

noted separately) in connection with pre12

mium reduction under this section.

13

(12) COBRA

14 15

PREMIUM ASSISTANCE .—

(A) IN GENERAL.—Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ‘‘SEC. 6431. COBRA PREMIUM ASSISTANCE.

‘‘(a) IN G ENERAL.—The entity to whom premiums are payable under COBRA continuation coverage shall be reimbursed for the amount of premiums not paid by plan beneficiaries by reason of section 3002(a) of the Health Insurance Assistance for the Unemployed Act of 2009. Such amount shall be treated as a credit against the requirement of such entity to make deposits of payroll taxes HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and the liability of such entity for payroll taxes. To the

3

extent that such amount exceeds the amount of such taxes,

4

the Secretary shall pay to such entity the amount of such

5 6

excess. No payment may be made under this subsection to

7

an entity with respect to any assistance eligible individual

8

until after such entity has received the reduced premium

9

from such individual required under section 3002(a)(1)(A)

10

of such Act.

11

‘‘(b) P AYROLL T AXES.—For purposes of this section, 12 13

the term ‘payroll taxes’ means—

14

‘‘(1) amounts required to be deducted and withheld

15

for the payroll period under section 3401 (relating to wage withholding), ‘‘(2) amounts required to be deducted for the payroll period under section 3102 (relating to FICA employee taxes), and ‘‘(3) amounts of the taxes imposed for the payroll period under section 3111 (relating to FICA employer taxes). ‘‘(c) T REATMENT OF C REDIT.—Except as otherwise provided by the Secretary, the credit described in subsection (a) shall be applied as though the employer had paid to the

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2

1 2

Secretary, on the day that the qualified beneficiary’s

3

premium payment is received, an amount equal to such

4

credit.

5 6

‘‘(d) T REATMENT OF P AYMENT.—For purposes of section

7

1324(b)(2) of title 31, United States Code, any payment under

8

this section shall be treated in the same manner as a refund of

9

the credit under section 35.

10 11

‘‘(e) R EPORTING .— ‘‘(1) IN GENERAL.—Each entity entitled to re-

12

imbursement under subsection (a) for any period shall

13

submit such reports as the Secretary may require,

14 15

including— ‘‘(A) an attestation of involuntary termination of employment for each covered employee on the basis

of

whose

termination

entitlement

to

reimbursement is claimed under subsection (a), and ‘‘(B) a report of the amount of payroll taxes offset under subsection (a) for the reporting period and the estimated offsets of such taxes for the subsequent reporting period in connection with reimbursements under subsection (a). ‘‘(2) T IMING OF REPORTS RELATING TO AMOUNT OF PAYROLL TAXES.—Reports

required under paragraph

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2 (1)(B) shall be submitted at the same time as deposits of taxes imposed by chapters 21, 22, and 24 or at such time as is specified by the Secretary. ‘‘(f) R EGULATIONS.—The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out this section, including the requirement to report information or the establishment of other

1 methods for verifying the correct amounts of payments 2 and credits under this section. The Secretary shall issue 3 such regulations or guidance with respect to the applica 4 tion of this section to group health plans that are multiem 5 ployer plans (as defined in section 3(37) of the Employee 6 Retirement Income Security Act of 1974).’’. 7(B) S OCIAL SECURITY TRUST FUNDS HELD 8 HARMLESS.—In determining any amount trans 9ferred or appropriated to any fund under the 10Social Security Act, section 6431 of the Inter 11nal Revenue Code of 1986 shall not be taken 12

into account. 13(C) C LERICAL AMENDMENT.—The table of 14sections for subchapter B of chapter 65 of the 15Internal Revenue Code of 1986 is amended by 16adding at the end the following new item: HR 1 PP

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2 ‘‘Sec. 6431. COBRA premium assistance.’’.

17(D) E FFECTIVE DATE .—The amendments 18made by this paragraph shall apply to pre 19miums to which subsection (a)(1)(A) applies. 20(13) P ENALTY FOR FAILURE TO NOTIFY 21 HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR 22

PREMIUM ASSISTANCE .—

23(A) IN GENERAL.—Part I of subchapter B 24of chapter 68 of the Internal Revenue Code of

11986 is amended by adding at the end the fol 2

lowing new section: 3

‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH

4 PLAN OF CESSATION OF ELIGIBILITY FOR 5 COBRA PREMIUM ASSISTANCE. 6‘‘(a) IN G ENERAL.—Any person required to notify a 7 group health plan under section 3002(a)(2)(C)) of the 8 Health Insurance Assistance for the Unemployed Act of 9 2009 who fails to make such a notification at such time 10 and in such manner as the Secretary of Labor may require 11 shall pay a penalty of 110 percent of the premium reduc 12 tion provided under such section after termination of eligi 13 bility under such subsection. 14‘‘(b) R EASONABLE C AUSE E XCEPTION .—No penalty 15 shall be imposed under subsection (a) with respect to any HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

16 failure if it is shown that such failure is due to reasonable

2 3

17 cause and not to willful neglect.’’.

4

18(B) C LERICAL AMENDMENT.—The table of

5

19sections of part I of subchapter B of chapter 68

6 7 8 9

20of such Code is amended by adding at the end 21

the following new item: ‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance.’’.

22(C) E FFECTIVE DATE .—The amendments

10 11

23made by this paragraph shall apply to failures occurring after the date of the enactment of this Act. (14) C OORDINATION WITH HCTC.—

12 13 14

(A) IN GENERAL.—Subsection (g) of section

15

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

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2 individual, or a qualifying family member for purposes of this section or section 7527 with respect to such month.’’. (B) E FFECTIVE DATE .—The amendment made by subparagraph (A) shall apply to taxable years ending after the date of the enactment of this Act. (15) E XCLUSION OF COBRA PREMIUM ASSISTANCE FROM GROSS INCOME .—

1(A) IN GENERAL.—Part III of subchapter 2B of chapter 1 of the Internal Revenue Code of 31986 is amended by inserting after section 4139B the following new section: 5

‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE.

6‘‘In the case of an assistance eligible individual (as 7 defined in section 3002 of the Health Insurance Assist 8 ance for the Unemployed Act of 2009), gross income does 9 not include any premium reduction provided under sub 10 section (a) of such section.’’. 11(B) C LERICAL AMENDMENT.—The table of 12sections for part III of subchapter B of chapter 131 of such Code is amended by inserting after 14the item relating to section 139B the following 15

new item: HR 1 PP

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2

1

‘‘Sec. 139C. COBRA premium assistance.’’.

2 3

16(C) E FFECTIVE DATE .—The amendments

4

17made by this paragraph shall apply to taxable

5

18years ending after the date of the enactment of

6

19

this Act.

7 8

20(b) E XTENSION OF COBRA B ENEFITS FOR O LDER 21

OR LONG -T ERM

E MPLOYEES.—

9

22(1) ERISA

AMENDMENT.—Section

602(2)(A)

10

23of the Employee Retirement Income Security Act of

11

241974 is amended by adding at the end the following

12 13

25

new clauses: ‘‘(x) S PECIAL RULE FOR OLDER OR

14 15

LONG -TERM EMPLOYEES GENERALLY .—In

the

case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has attained age 55 or has completed 10 or more years of service with the entity that is the employer at the time of the qualifying event, clauses (i) and (ii) shall not apply. For purposes of this clause, in the case of a group health plan that is a multiemployer plan, service by the covered employee

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2

1 2

performed for 2 or more employers during

3

periods for which such employers

4

contributed to such plan shall be treated as

5

service performed for the entity referred to in

6

the preceding sentence.

7

‘‘(xi) Y EAR OF SERVICE.— For purposes

8 9

of this subparagraph, the term ‘year of

10

service’ shall have the meaning provided in

11

section 202(a)(3).’’. 12

(2) IRC

13

AMENDMENT.—Clause

(i) of section

14

4980B(f)(2)(B) of the Internal Revenue Code of 1986 is

15

amended by adding at the end the following

new

subclauses: ‘‘(X) S PECIAL RULE FOR OLDER OR LONG -TERM EMPLOYEES ERALLY .—In

GEN -

the case of a qualifying

event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has attained age 55 or has completed 10 or more years of service with the entity that is the employer at the time of the

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2

1 2

qualifying event, subclauses (I) and (II)

3

shall not apply. For purposes of this

4

subclause, in the case of a group health

5

plan that is a multiemployer plan (as

6 7

defined in section 3(37) of the

8

Employee Retirement Income Security

9

Act of 1974), service by the covered

10

employee performed for 2 or more

11

employers during periods for which 12

such employers contributed to such plan

13 14

shall be treated as service performed for

15

the entity referred to in the preceding sentence. ‘‘(XI) Y EAR

OF

SERVICE .—

For

purposes of this clause, the term ‘year of service’ shall have the meaning pro vided in section 202(a)(3) of the Employee Retirement Income Security Act of 1974.’’. (3) PHSA

AMENDMENT.—Section

2202(2)(A) of

the Public Health Service Act is amended by adding at the end the following new clauses:

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2

1 2

‘‘(viii) S PECIAL RULE FOR OLDER OR

3

LONG -TERM EMPLOYEES GENERALLY .—In

4

the

case of a qualifying event described in

5

section 2203(2) with respect to a covered

6 7

employee who (as of such qualifying event)

8

has attained age 55 or has completed 10 or

9

more years of service with the entity that is

10

the employer at the time of the qualifying

11

event, clauses (i) and (ii) shall not apply. For 12

purposes of this clause, in the case of a

13 14

group health plan that is a multiemployer

15

plan (as defined in section 3(37) of the Employee Retirement Income Security Act of 1974), service by the covered employee performed for 2 or more employers during periods for which such employers contributed to such plan shall be treated as service performed for the entity referred to in the preceding sentence. ‘‘(ix) Y EAR OF SERVICE.— For purposes of this subparagraph, the term ‘year of service’ shall have the meaning provided in

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2

1 2

section 202(a)(3) of the Employee Re-

3

tirement Income Security Act of 1974.’’.

4

(4)

E FFECTIVE

DATE

OF

AMENDMENTS .—The

5 6

amendments made by this subsection shall apply to

7

periods of coverage which would (without regard to the

8

amendments made by this section) end on or after the

9

date of the enactment of this Act.

10

SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE

11

FOR THE UNEMPLOYED.

12

(a) IN G ENERAL.—Section 1902 of the Social Security 13 14

Act (42 U.S.C. 1396b) is amended— (1) in subsection (a)(10)(A)(ii)—

15

(A) by striking ‘‘or’’ at the end of subclause (XVIII); (B) by adding ‘‘or’’ at the end of subclause (XIX); and (C) by adding at the end the following new subclause: ‘‘(XX) who are described in subsection (dd)(1) (relating to certain unemployed individuals and their families);’’; and (2) by adding at the end the following new subHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section:

3

‘‘(dd)(1) Individuals described in this paragraph are—

4 5 6

‘‘(A) individuals who— ‘‘(i) are within one or more of the categories de-

7 8

scribed in paragraph (2), as elected under the State

9

plan; and

10 11

‘‘(ii) meet the applicable requirements of paragraph (3); and ‘‘(B) individuals who—

12

‘‘(i) are the spouse, or dependent child under 19

13 14

years of age, of an individual described in sub-

15

paragraph (A); and ‘‘(ii) meet the requirement of paragraph (3)(B). ‘‘(2) The categories of individuals described in this paragraph are each of the following: ‘‘(A)(i) Individuals who are receiving unemployment compensation benefits; and ‘‘(ii) individuals who were receiving, but have exhausted, unemployment compensation benefits on or after July 1, 2008. ‘‘(B) Individuals who are involuntarily unemployed and were involuntarily separated from employment on or after September 1, 2008, and before HR 1 PP

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2

1 2

January 1, 2011, whose family gross income does not

3

exceed a percentage specified by the State (not to

4

exceed 200 percent) of the income official poverty line

5 6

(as defined by the Office of Management and Budget,

7

and revised annually in accordance with section 673(2)

8

of the Omnibus Budget Reconciliation Act of 1981)

9

applicable to a family of the size involved,

10

who, but

for

and

subsection (a)(10)(A)(ii)(XX), are

11

not eligible for medical assistance under this title or 12 13

health assistance under title XXI. ‘‘(C) Individuals who are involuntarily unem-

14 15

ployed and were involuntarily separated from employment on or after September 1, 2008, and before January 1, 2011, who are members of households participating in the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), and who, but for subsection (a)(10)(A)(ii)(XX), are not eligible for medical assistance under this title or health assistance under title XXI. ‘‘(3) The requirements of this paragraph with respect to an individual are the following:

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2

1

‘‘(A) In the case of individuals within a category

2 3 4

described in subparagraph (A)(i) of paragraph (2), the individual was involuntarily separated from

5 6

employment on or after September 1, 2008, and before

7

January 1, 2011, or meets such comparable re-

8

quirement as the Secretary specifies through rule,

9

guidance, or otherwise in the case of an individual

10

who was an independent contractor.

11

‘‘(B) The individual is not otherwise covered 12 13

under creditable coverage, as defined in section

14

2701(c) of the Public Health Service Act (42 U.S.C.

15

300gg(c)), but applied without regard to paragraph (1)(F) of such section and without regard to coverage provided by reason of the application of subsection (a)(10)(A)(ii)(XX). ‘‘(4)(A) No income or resources test shall be applied with respect to any category of individuals described in subparagraph (A) or (C) of paragraph (2) who are eligible for medical assistance only by reason of the application

of

subsection (a)(10)(A)(ii)(XX). ‘‘(B) Nothing in this subsection shall be construed to prevent a State from imposing a resource test for the category

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2

1 2 3 4

of individuals described in paragraph (2)(B)). ‘‘(C) In the case of individuals described in paragraph (2)(A) or (2)(C), the requirements of subsections (i)(22) and

5 6

(x) in section 1903 shall not apply.’’. (b) 100 P ERCENT FEDERAL M ATCHING R ATE .— (1) FMAP FOR TIME-LIMITED PERIOD .—The third

7 8 9

sentence of section 1905(b) of such Act (42 U.S.C.

10

1396d(b)) is amended by inserting before the period at

11

the end the following: ‘‘and for items and services

12

furnished on or after the date of enactment of this Act

13

and before January 1, 2011, to individuals who are

14 15

eligible for medical assistance only by reason the

application of

of

section

1902(a)(10)(A)(ii)(XX)’’. (2) C ERTAIN ENROLLMENT-RELATED ADMINISTRATIVE COSTS.—Notwithstanding

any other provision

of law, for purposes of applying section 1903(a) of the Social Security Act (42 U.S.C. 1396b(a)), with respect to expenditures incurred on or after the date of the enactment of this Act and before January 1, 2011, for costs of administration (including outreach and the modification and operation of eligibility information systems) attributable to eligibility determination and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

enrollment of individuals who are eligible for medical

3

assistance only by reason of the application of section

4

1902(a)(10)(A)(ii)(XX) of such Act, as added by

5 6

subsection (a)(1), the Federal matching percentage

7

shall be 100 percent instead of the matching

8

percentage otherwise applicable.

9

(c)

10

C ONFORMING

A MENDMENTS.—(1)

Section 1903(f)(4) of such Act (42 U.S.C. 1396c(f)(4)) is

11

amended by inserting ‘‘1902(a)(10)(A)(ii)(XX), or’’ after 12 13 14 15

‘‘1902(a)(10)(A)(ii)(XIX),’’. (2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended, in the matter preceding paragraph (1)— (A) by striking ‘‘or’’ at the end of clause (xii); (B) by adding ‘‘or’’ at the end of clause (xiii); and (C) by inserting after clause (xiii) the following new clause: ‘‘(xiv) individuals described in section 1902(dd)(1),’’.

TITLE IV—HEALTH INFORMATION TECHNOLOGY SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

(a) S HORT T ITLE.—This title may be cited as the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 ‘‘Health Information Technology for Economic and Clinical Health Act’’ or the ‘‘HITECH Act’’. (b) T ABLE OF C ONTENTS OF T ITLE.—The table of contents of this title is as follows: Sec. 4001. Short title; table of contents of title. Subtitle A—Promotion of Health Information Technology PART I—IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY Sec. 4101. ONCHIT; standards development and adoption.

‘‘TITLE XXX—HEALTH INFORMATION TECHNOLOGY AND QUALITY ‘‘Sec. 3000. Definitions. ‘‘Subtitle A—Promotion of Health Information Technology ‘‘Sec. 3001. Office of the National Coordinator for Health Information Technology. ‘‘Sec. 3002. HIT Policy Committee. ‘‘Sec. 3003. HIT Standards Committee. ‘‘Sec. 3004. Process for adoption of endorsed recommendations; adoption of initial set of standards, implementation specifications, and certification criteria. ‘‘Sec. 3005. Application and use of adopted standards and implementation specifications by Federal agencies. ‘‘Sec. 3006. Voluntary application and use of adopted standards and im plementation specifications by private entities. ‘‘Sec. 3007. Federal health information technology. ‘‘Sec. 3008. Transitions. ‘‘Sec. 3009. Relation to HIPAA privacy and security law. ‘‘Sec. 3010. Authorization for appropriations. Sec. 4102. Technical amendment. PART II—APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY STANDARDS; REPORTS Sec. 4111. Coordination of Federal activities with adopted standards and implementation specifications. Sec. 4112. Application to private entities. Sec. 4113. Study and reports. Subtitle B—Testing of Health Information Technology

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2 Sec. 4201. National Institute for Standards and Technology testing. Sec. 4202. Research and development programs. Subtitle C—Incentives for the Use of Health Information Technology PART I—GRANTS AND LOANS FUNDING Sec. 4301. Grant, loan, and demonstration programs. ‘‘Subtitle B—Incentives for the Use of Health Information Technology ‘‘Sec. 3011. Immediate funding to strengthen the health information tech nology infrastructure. ‘‘Sec. 3012. Health information technology implementation assistance. ‘‘Sec. 3013. State grants to promote health information technology. ‘‘Sec. 3014. Competitive grants to States and Indian tribes for the devel opment of loan programs to facilitate the widespread adoption of certified EHR technology. ‘‘Sec. 3015. Demonstration program to integrate information technology into clinical education. ‘‘Sec. 3016. Information technology professionals on health care. ‘‘Sec. 3017. General grant and loan provisions. ‘‘Sec. 3018. Authorization for appropriations. PART II—MEDICARE PROGRAM Sec. 4311. Incentives for eligible professionals. Sec. 4312. Incentives for hospitals. Sec. 4313. Treatment of payments and savings; implementation funding. Sec. 4314. Study on application of EHR payment incentives for providers not receiving other incentive payments. PART III—MEDICAID FUNDING Sec. 4321. Medicaid provider HIT adoption and operation payments; implementation funding. Sec. 4322. Medicaid nursing home grant program. Subtitle D—Privacy Sec. 4400. Definitions. PART I—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS Sec. 4401. Application of security provisions and penalties to business associ ates of covered entities; annual guidance on security provisions. Sec. 4402. Notification in the case of breach. Sec. 4403. Education on Health Information Privacy. Sec. 4404. Application of privacy provisions and penalties to business associates of covered entities. Sec. 4405. Restrictions on certain disclosures and sales of health information; accounting of certain protected health information disclosures; access to certain information in electronic format. Sec. 4406. Conditions on certain contacts as part of health care operations. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4 5 6

Sec. 4407. Temporary breach notification requirement for vendors of personal health records and other non-HIPAA covered entities. Sec. 4408. Business associate contracts required for certain entities. Sec. 4409. Clarification of application of wrongful disclosures criminal pen alties. Sec. 4410. Improved enforcement. Sec. 4411. Audits. Sec. 4412. Special rule for information to reduce medication errors and improve patient safety.

7

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

8 9 10

Sec. 4421. Relationship to other laws. Sec. 4422. Regulatory references. Sec. 4423. Effective date. Sec. 4424. Studies, reports, guidance. Subtitle E—Miscellaneous Medicare Provisions

11 12 13

Sec. 4501. Moratoria on certain Medicare regulations. Sec. 4502. Long-term care hospital technical corrections.

Subtitle A—Promotion of Health

14

Information Technology

15

PART I—IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOP TION.

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:

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2

1 2

‘‘(1) C ERTIFIED EHR TECHNOLOGY .—The term

3

‘certified EHR technology’ means a qualified elec-

4

tronic health record that is certified pursuant to section

5 6

3001(c)(5) as meeting standards adopted under section

7

3004 that are applicable to the type of record involved

8

(as determined by the Secretary, such as an

9

ambulatory electronic health record for office-based

10

physicians or an inpatient hospital electronic health

11

record for hospitals). 12

‘‘(2)

13

E N TERPRISE

IN TEG RATIO N .— The

term

14

‘enterprise integration’ means the electronic linkage of

15

health care providers, health plans, the govern ment, 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) H EALTH CARE PROVIDER.—The term ‘health care provider’ means a hospital, skilled nursing facility, nursing facility, home health entity or other long term care facility, health care clinic, Federally qualified

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2

1 2

health center, group practice (as defined in section

3

1877(h)(4) of the Social Security Act), a pharmacist, a

4

pharmacy, a laboratory, a physician (as defined in

5 6

section 1861(r) of the Social Security Act), a

7

practitioner (as described in section 1842(b)(18)(C) of

8

the Social Security Act), a provider operated by, or

9

under contract with, the Indian Health Service or by an

10

Indian tribe (as defined in the Indian

11

Self-Determination and Education Assistance Act), 12 13

tribal organization, or urban Indian organization (as

14

defined in section 4 of the Indian Health Care

15

Improvement Act), a rural health clinic, a covered entity under section 340B, an ambulatory surgical center described in section 1833(i) of the Social Security Act, and any other category of facil ity or clinician determined appropriate by the Secretary. ‘‘(4) H EALTH

INFORMATION .—The

term ‘health

information’ has the meaning given such term in section 1171(4) of the Social Security Act. ‘‘(5) H EALTH INFORMATION TECHNOLOGY .— The term ‘health information technology’ means hardware, software, integrated technologies and related licenses,

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2

1 2

intellectual property, upgrades, and packaged solutions

3

sold as services that are specifically designed for use

4

by health care entities for the electronic creation,

5 6

maintenance, or exchange of health information.

7

‘‘(6) H EALTH PLAN .—The term ‘health plan’ has the

8

meaning given such term in section 1171(5) of the Social

9

Security Act.

10

‘‘(7) HIT

POLICY COMMITTEE .—The

term ‘HIT

11

Policy Committee’ means such Committee established 12 13

under section 3002(a). ‘‘(8) HIT STANDARDS COMMITTEE.—The term ‘HIT

14 15

Standards

Committee’

means

such

Committee

established under section 3003(a). ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN FORMATION .—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)

N ATIONAL

COORDINATOR .—The

term

‘National Coordinator’ means the head of the Office of the National Coordinator for Health Information

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1

2

2

Technology established under section 3001(a).

3 4

‘‘(12) PHARMACIST.—The term ‘pharmacist’ has the meaning given such term in section 804(2) of the Federal

5 6

Food, Drug, and Cosmetic Act. ‘‘(13) Q UALIFIED

7

ELECTRONIC HEALTH

8

RECORD .—The

9

record’ means an electronic record of health-related

10

term ‘qualified electronic health

information on an individual that—

11

‘‘(A) includes patient demographic and 12

clinical health information, such as medical history

13

and problem lists; and

14 15

‘‘(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) S TATE .—The term ‘State’ means each of the several States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

and the

2

1 2 3

Northern Mariana Islands.

‘‘Subtitle A—Promotion of Health

4

Information Technology

5 ‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR

6 HEALTH INFORMATION TECHNOLOGY.

7 8

‘‘(a) E STABLISHMENT.—There is established within the

9

Department of Health and Human Services an Office of the

10 11

National Coordinator for Health Information Technology (referred to in this section as the ‘Office’). The Office shall

12 13

be headed by a National Coordinator who shall be

14

appointed by the Secretary and shall report directly to the

15

Secretary. ‘‘(b) P URPOSE.—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; HR 1 PP

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2

1

‘‘(3) reduces health care costs resulting from

2 3 4

inefficiency, medical errors, inappropriate care, duplicative care, and incomplete information;

5

‘‘(4) provides appropriate information to help guide

6 7

medical decisions at the time and place of care; ‘‘(5) ensures the inclusion of meaningful public

8 9

input in such development of such infrastructure;

10

‘‘(6) improves the coordination of care and in-

11

formation among hospitals, laboratories, physician 12 13

offices, and other entities through an effective infra-

14

structure for the secure and authorized exchange of

15

health care information; ‘‘(7) improves public health activities and facilitates the early identification and rapid response to public health threats and emergencies, including bioterror events and infectious disease outbreaks; ‘‘(8) facilitates health and clinical research and health care quality; ‘‘(9) promotes prevention of chronic diseases; ‘‘(10) promotes a more effective marketplace, greater competition, greater systems analysis, increased consumer choice, and improved outcomes in health

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2

1 2

care services; and

3 4

‘‘(11) improves efforts to reduce health disparities.

5 6

‘‘(c) D UTIES OF THE N ATIONAL C OORDINATOR.— ‘‘(1)

7

S TANDARDS.—The National Coordinator shall review

8

and determine whether to endorse each standard,

9

implementation specification, and certification criterion

10

for the electronic exchange and use of health

11

information that is recommended by the HIT Standards 12 13

Committee under section 3003 for purposes of

14

adoption under section 3004. The Coordinator shall

15

make such determination, and report to the Secretary such determination, not later than 45 days after the date the recommendation is received by the Coordinator. ‘‘(2) HIT

POLICY COORDINATION .—

‘‘(A) IN GENERAL.—The National Coordinator shall coordinate health information technology policy and programs of the Department with those of other relevant executive branch agencies with a goal of avoiding duplication of efforts and of helping to ensure that each agency undertakes health information technology acHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tivities primarily within the areas of its greatest

3

expertise and technical capability and in a manner

4

towards a coordinated national goal.

5

‘‘(B) HIT

6

MITTEES.—The

7

POLICY AND STANDARDS COM -

National Coordinator shall be a

8

leading member in the establishment and oper-

9

ations of the HIT Policy Committee and the HIT

10

Standards Committee and shall serve as a liaison

11

among those two Committees and the Federal 12

Government.

13

‘‘(3) S TRATEGIC PLAN .—

14 15

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

States by 2014.

2 3

‘‘(iii) The incorporation of privacy and

4

security protections for the electronic ex-

5

change of an individual’s individually iden-

6

tifiable health information.

7

‘‘(iv) Ensuring security methods to

8 9

ensure appropriate authorization and elec-

10

tronic authentication of health information

11

and specifying technologies or methodolo12

gies for rendering health information unus-

13

able, unreadable, or indecipherable.

14 15

‘‘(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

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2

1

the quality of health care, reducing medical

2 3

errors, reducing health disparities, improving

4

public health, and improving the continuity of care

5

among health care settings. ‘‘(B)

6 7

C OLLABORATION .—The

8

updated through collaboration of public and

9

private entities.

10

strategic plan shall be

‘‘(C) M EASURABLE OUTCOME GOALS.— The

11

strategic plan update shall include measurable 12

outcome goals.

13 14

‘‘(D) PUBLICATION.—The National Coordinator

15

shall republish the strategic plan, including all updates. ‘‘(4) W EBSITE .—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) C ERTIFICATION .— ‘‘(A) IN GENERAL.—The National Coordinator, in consultation with the Director of the HR 1 PP

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2

1 2

National Institute of Standards and Technology,

3

shall develop a program (either directly or by

4

contract) for the voluntary certification of health

5

information technology as being in compliance

6 7

with applicable certification criteria adopted

8

under this subtitle. Such program shall include

9

testing of the technology in accordance with

10

section 4201(b) of the HITECH Act.

11

‘‘(B)

C ERTIFICATION

CRITERIA

DE -

12 SCRIBED .—In

13

this title, the term ‘certification

14

criteria’ means, with respect to standards and

15

implementation specifications for health information technology, criteria to establish that the technology meets such standards and implementation specifications. ‘‘(6) R EPORTS AND PUBLICATIONS.— ‘‘(A) R EPORT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Coordinator or the HIT Policy Committee or HIT

3

Standards Committee requires to evaluate and

4

develop standards, implementation specifications,

5

and certification criteria, or to achieve full

6 7

participation of stakeholders in the adoption of a

8

nationwide health information technology

9

infrastructure that allows for the electronic use

10

and exchange of health information.

11

‘‘(B)

IMPLEMENTATION

REPORT.—The

12

National Coordinator shall prepare a report that

13 14

identifies lessons learned from major public and

15

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) A SSESSMENT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

health disparities and in areas with a high

3

proportion of individuals who are uninsured,

4

underinsured, and medically underserved indi-

5

viduals (including urban and rural areas) and

6 7

identify practices to increase the adoption of such

8

technology by health care providers in such

9

communities.

10

‘‘(D) E VALUATION OF BENEFITS AND COSTS OF

11 THE ELECTRONIC USE AND EXCHANGE OF HEALTH

12

INFORMATION .—The

National Coordinator shall

13

evaluate and publish evidence on the benefits and

14

costs of the electronic use and exchange of health

15

information and assess to whom these benefits and costs accrue. ‘‘(E)

R ESOURCE

REQUIREMENTS.—The

National Coordinator shall estimate and publish resources required annually to reach the goal of utilization of an electronic health record for each person in the United States by 2014, including the required level of Federal funding, expectations for regional, State, and private investment, and the expected contributions by volunteers to activities for the utilization of such records. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(7) A SSISTANCE.—The National Coordinator

3

may provide financial assistance to consumer advocacy

4

groups and not-for-profit entities that work in the

5 6

public interest for purposes of defraying the cost to

7

such groups and entities to participate under, whether

8

in whole or in part, the National Technology Transfer

9

Act of 1995 (15 U.S.C. 272 note).

10

‘‘(8) G OVERNANCE FOR NATIONWIDE HEALTH

11 INFORMATION NETWORK .—The

National Coordinator

12 13 14

shall establish a governance mechanism for the nationwide health information network.

15

‘‘(d) D ETAIL OF FEDERAL E MPLOYEES.— ‘‘(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) E FFECT 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 HR 1 PP

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2

1

‘‘(B) be in addition to any other staff of the

2 3

Department employed by the National Co-

4

ordinator.

5

‘‘(3) A CCEPTANCE OF DETAILEES.—Notwith-

6 7

standing any other provision of law, the Office may

8

accept detailed personnel from other Federal agen cies

9

without regard to whether the agency described under

10

paragraph (1) is reimbursed.

11

‘‘(e) C HIEF P RIVACY O FFICER OF THE O FFICE OF THE 12 13

N ATIONAL C OORDINATOR.—Not later than 12 months after

14

the date of the enactment of this title, the Secretary shall

15

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.

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2

1 2

National Coordinator relating to the implementation of a

3

nationwide health information technology infrastructure,

4

including implementation of the strategic plan described in

5 6 7

section 3001(c)(3). ‘‘(b) D UTIES.— ‘‘(1) R ECOMMENDATIONS ON HEALTH INFORMATION

8 9 10 11

TECHNOLOGY INFRASTRUCTURE .—The

HIT Policy

Committee shall recommend a policy frame work for the development and adoption of a nationwide health

12 13

information technology infrastructure that permits the

14

electronic exchange and use of health information as is

15

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) S PECIFIC 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

purposes of adoption under section 3004 and

3

shall recommend an order of priority for the

4

development, harmonization, and recognition of

5

such standards, specifications, and certification

6 7

criteria among the areas so recommended. Such

8

standards and implementation specifications shall

9

include named standards, architectures, and

10

software schemes for the authentication and

11

security of individually identifiable health 12

information and other information as needed to

13 14

ensure the reproducible development of common

15

solutions across disparate entities. ‘‘(B) A REAS 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 in-

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2

1 2

formation with the goal of minimizing the

3

reluctance of patients to seek care (or dis-

4

close information about a condition) because

5

of privacy concerns, in accordance with

6 7

applicable law, and for the use and

8

disclosure of limited data sets of such in-

9

formation.

10

‘‘(ii) A nationwide health information

11

technology infrastructure that allows for the 12

electronic use and accurate exchange of health

13

information.

14 15

‘‘(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

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2

1 2

health care operations (as such terms are

3

defined for purposes of such regulations).

4

‘‘(v) The use of certified electronic

5

health records to improve the quality of

6 7

health care, such as by promoting the co-

8

ordination of health care and improving

9

continuity of health care among health care

10

providers, by reducing medical errors, by

11

improving population health, by reducing 12

health disparities, and by advancing research

13

and education.

14 15

‘‘(vi) Technologies that allow individually identifiable health information to be rendered unusable, unreadable, or indeci pherable to unauthorized individuals when such information is transmitted in the nationwide health information network or physically transported outside of the secured, physical perimeter of a health care provider, health plan, or health care clearinghouse. ‘‘(C)

O THER

IDERATION .—In

AREAS

FOR

CONS

making recommendations under

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2

1 2

subparagraph (A), the HIT Policy Committee may

3

consider the following additional areas:

4

‘‘(i) The appropriate uses of a nationwide

5

health information infrastructure, including for

6

purposes of—

7

‘‘(I) the collection of quality data

8 9

and public reporting;

10

‘‘(II) biosurveillance and public

11

health; 12

‘‘(III) medical and clinical re-

13

search; and

14 15

‘‘(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

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2

1

medical errors.

2 3

‘‘(vi) Technologies that facilitate the

4

continuity of care among health settings.

5

‘‘(vii) Technologies that meet the needs

6

of diverse populations.

7

‘‘(viii) Any other technology that the HIT

8 9

Policy Committee finds to be among

10

the

technologies with the greatest potential to

11

improve the quality and efficiency of health 12

care.

13 14

‘‘(3) FORUM .—The HIT Policy Committee shall

15

serve as a forum for broad stakeholder input with specific expertise in policies relating to the matters described in paragraphs (1) and (2). ‘‘(c) M EMBERSHIP AND O PERATIONS.— ‘‘(1) IN GENERAL.—The National Coordinator shall provide leadership in the establishment and operations of the HIT Policy Committee. ‘‘(2) M EMBERSHIP.—The membership of the HIT Policy Committee shall at least reflect providers, ancillary healthcare workers, consumers, purchasers, health plans, technology vendors, researchers, relevant

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1

2

2

Federal agencies, and individuals with technical

3

expertise on health care quality, privacy and security,

4

and on the electronic exchange and use of health

5 6

information. ‘‘(3) C ONSIDERATION .—The National Coordinator

7 8

shall ensure that the relevant recommendations and

9

comments from the National Committee on Vital and

10

Health Statistics are considered in the development of

11

policies. 12 13

‘‘(d) A PPLICATION

OF

FACA.—The Federal Advisory

14

Committee Act (5 U.S.C. App.), other than section 14 of such

15

Act, shall apply to the HIT Policy Committee. ‘‘(e) P UBLICATION .—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) E STABLISHMENT.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

electronic exchange and use of health information for pur-

3

poses of adoption under section 3004, consistent with the

4

implementation of the strategic plan described in section

5 6

3001(c)(3) and beginning with the areas listed in section

7

3002(b)(2)(B) in accordance with policies developed by the

8

HIT Policy Committee.

9

‘‘(b) D UTIES.—

10

‘‘(1) S TANDARDS DEVELOPMENT.—

11

‘‘(A) IN GENERAL.—The HIT Standards

12

Committee shall recommend to the National

13 14

Coordinator standards, implementation speci-

15

fications, 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) P ILOT TESTING OF STANDARDS AND IMPLEMENTATION SPECIFICATIONS.—In HR 1 PP

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the de

2

1 2

velopment, harmonization, or recognition of

3

standards and implementation specifications, the

4

HIT Standards Committee shall, as appropriate,

5

provide for the testing of such standards and

6 7

specifications by the National Institute for

8

Standards

9

4201(a) of the HITECH Act.

10

and

Technology under section

‘‘(C) C ONSISTENCY .—The standards, im-

11

plementation specifications, and certification 12

criteria recommended under this subsection shall

13 14

be consistent with the standards for information

15

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.

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2

1

‘‘(3) S CHEDULE .—Not later than 90 days after the

2 3 4

date of the enactment of this title, the HIT Standards Committee shall develop a schedule for the assessment

5 6

of policy recommendations developed by the HIT

7

Policy Committee under section 3002. The HIT

8

Standards Committee shall update such schedule

9

annually. The Secretary shall publish such schedule in

10

the Federal Register.

11

‘‘(4) P UBLIC INPUT.—The HIT Standards 12 13

Committee shall conduct open public meetings and

14

develop a process to allow for public comment on the

15

schedule described in paragraph (3) and recommendations described in this subsection. Under such process comments shall be submitted in a timely manner after the date of publication of a recommendation under this subsection. ‘‘(c) M EMBERSHIP AND O PERATIONS.— ‘‘(1) IN GENERAL.—The National Coordinator shall provide leadership in the establishment and operations of the HIT Standards Committee. ‘‘(2) M EMBERSHIP.—The membership of the HIT Standards Committee shall at least reflect providers, ancillary healthcare workers, consumers, purchasers, HR 1 PP

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2

1 2

health plans, technology vendors, researchers, relevant

3

Federal agencies, and individuals with technical

4

expertise on health care quality, privacy and security,

5 6 7

and on the electronic exchange and use of health information. ‘‘(3) C ONSIDERATION .—The National Coordinator

8 9 10

shall ensure that the relevant recommendations and comments from the National Committee on Vital and

11

Health Statistics are considered in the development of 12 13

standards.

14

‘‘(4) A SSISTANCE.—For the purposes of carrying

15

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) A PPLICATION

OF

FACA.—The Federal Advisory

Committee Act (5 U.S.C. App.), other than section 14, shall apply to the HIT Standards Committee. ‘‘(e) P UBLICATION .—The Secretary shall provide for

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1

2

2

publication in the Federal Register and the posting on the

3

Internet website of the Office of the National Coordinator

4

for Health Information Technology of all recommendations

5 6 7

made by the HIT Standards Committee under this section. ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC OMMENDATIONS; ADOPTION OF INITIAL SET

8

OF STANDARDS, IMPLEMENTATION SPECI

9

FICATIONS, AND CERTIFICATION CRITERIA.

10 11 12

‘‘(a) P ROCESS FOR A DOPTION OF E NDORSED R ECOMMENDATIONS.—

13

‘‘(1) R EVIEW OF ENDORSED STANDARDS,

14 15

PLEMENTATION

SPECIFICATIONS,

CATION CRITERIA.—Not

AND

IM CERTIFI-

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) D ETERMINATION TO ADOPT STANDARDS, IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 CRITERIA.—If

2 3 4

the Secretary determines— ‘‘(A) to

propose adoption of any grouping of such standards, implementation specifications, or certification criteria,

5 6

the Secretary shall, by regulation, determine whether or not

7 8

to adopt such grouping of standards, implemen-

9

tation specifications, or certification criteria; or

10

‘‘(B) not to propose adoption of any grouping of

11

standards, implementation specifications, or 12

certification criteria, the Secretary shall notify the

13 14

National Coordinator and the HIT Standards

15

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) A DOPTION P LE M E N TA TIO N

OF

INITIAL S ET

S PECIFICATIO NS ,

OF

S TANDARDS, IM -

AN D

C E R TIFIC ATIO N

C RITERIA.— ‘‘(1) IN GENERAL.—Not later than December 31, 2009, the Secretary shall, through the rulemaking

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2

1 2

process described in section 3004(a), adopt an initial

3

set of standards, implementation specifications, and

4

certification criteria for the areas required for

5 6

consideration under section 3002(b)(2)(B). ‘‘(2) A PPLICATION OF CURRENT STANDARDS,

7 8

IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION

9

CRITERIA.—The

10

standards, implementation

specifications, and certification criteria adopted before

11

the date of the enactment of this title through the 12 13

process existing through the Office of the National

14

Coordinator for Health Information Technology may be

15

applied towards meeting the requirement of paragraph (1). ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND ARDS AND IMPLEMENTATION SPECIFICA TIONS BY FEDERAL AGENCIES.

‘‘For requirements relating to the application and use by Federal agencies of the standards and implementation specifications adopted under section 3004, see section 4111 of the HITECH Act. ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT EDSTANDARDSANDIMPLEMENTATION SPECIFICATIONS BY PRIVATE ENTITIES.

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2

1 2

‘‘(a) IN G ENERAL.—Except as provided under section

3

4112 of the HITECH Act, any standard or implementation

4

specification adopted under section 3004 shall be voluntary

5 6

with respect to private entities.

7

‘‘(b) R ULE OF C ONSTRUCTION .—Nothing in this subtitle

8

shall be construed to require that a private entity that enters

9

into a contract with the Federal Government apply or use

10

the standards and implementation specifications adopted

11

under section 3004 with respect to activities not related to 12 13

the contract. ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH

14

NOLOGY.

15

‘‘(a) IN G ENERAL.—The National Coordinator shall support the development, routine updating, and provision of qualified EHR technology (as defined in section 3000) consistent with subsections (b) and (c) unless the Secretary determines that the needs and demands of providers are being substantially and adequately met through the marketplace. ‘‘(b) C ERTIFICATION .—In making such EHR technology publicly available, the National Coordinator shall ensure that the qualified EHR technology described in subsection (a) is certified under the program developed HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under section 3001(c)(3) to be in compliance with applica-

3

ble standards adopted under section 3003(a).

4

‘‘(c) A UTHORIZATION T O C HARGE A N OMINAL

5 6

FEE.—The National Coordinator may impose a nominal fee

7

for the adoption by a health care provider of the health

8

information technology system developed or approved

9

under subsection (a) and (b). Such fee shall take into ac-

10

count the financial circumstances of smaller providers, low

11

income providers, and providers located in rural or other 12 13 14 15

medically underserved areas. ‘‘(d) R ULE OF C ONSTRUCTION .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

National Coordinator as of the date of the enactment of this

3

title.

4

‘‘(b) AHIC.—

5

‘‘(1) To the extent consistent with sections 3002 6 7

and 3003, all functions, personnel, assets, and

8

liabilities applicable to the AHIC Successor, Inc.

9

doing business as the National eHealth Collaborative

10 11

as of the day before the date of the enactment of this title shall be transferred to the HIT Policy Committee

12 13

or the HIT Standards Committee, established under

14

section 3002(a) or 3003(a), as appropriate, as of the

15

date of the enactment of this title. ‘‘(2) In carrying out section 3003(b)(1)(A), until recommendations

are

made

by the

HIT

Policy

Committee, recommendations of the HIT Standards Committee shall be consistent with the most recent recommendations made by such AHIC Successor, Inc. ‘‘(c) R ULES OF C ONSTRUCTION .— ‘‘(1) ONCHIT.—Nothing in section 3001 or subsection (a) shall be construed as requiring the creation of a new entity to the extent that the Office of the National Coordinator for Health Information

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2

1 2

Technology established pursuant to Executive Order

3

No. 13335 is consistent with the provisions of section

4

3001.

5

‘‘(2) AHIC.—Nothing in sections 3002 or 3003

6 7

or subsection (b) shall be construed as prohibiting the

8

AHIC Successor, Inc. doing business as the National

9

eHealth Collaborative from modifying its charter,

10

duties, membership, and any other structure or

11

function required to be consistent with section 3002 12 13

and 3003 in a manner that would permit the Secretary

14

to choose to recognize such AHIC Successor, Inc. as

15

the HIT Policy Committee or the HIT Standards Committee. ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.

‘‘(a) IN G ENERAL.—With respect to the relation of this title to HIPAA privacy and security law: ‘‘(1) This title may not be construed as having any effect on the authorities of the Secretary under HIPAA privacy and security law. ‘‘(2) The purposes of this title include ensuring that the health information technology standards implementation specifications adopted under HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

and section

2

1 2

3004 take into account the requirements of HIPAA

3

privacy and security law.

4

‘‘(b) D EFINITION .—For purposes of this section, the

5 6

term ‘HIPAA privacy and security law’ means— ‘‘(1) the provisions of part C of title XI of the

7 8

Social Security Act, section 264 of the Health Insur-

9

ance Portability and Accountability Act of 1996, and

10

subtitle D of title IV of the HITECH Act; and

11

‘‘(2) regulations under such provisions. 12 13

‘‘SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS.

‘‘There is authorized to be appropriated to the Office

14 15

of the National Coordinator for Health Information Technology to carry out this subtitle $250,000,000 for fiscal year 2009.’’. SEC. 4102. TECHNICAL AMENDMENT.

Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, or D’’. PART II—APPLICATION AND USE OF ADOPTED HEALTHINFORMATIONTECHNOLOGY STANDARDS; REPORTS SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH

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2

1

ADOPTED STANDARDS AND IMPLEMENTA

2

TION SPECIFICATIONS.

3 4 5

(a) S PENDING ON H EALTH INFORMATION T ECHNOLOGY S YSTEMS.—As each agency (as defined in the Executive

6

order issued on August 22, 2006, relating to promoting 7 8 9 10 11

quality and efficient health care in Federal government administered or sponsored health care programs) implements, acquires, or upgrades health information technology systems used for the direct exchange of individually

12

identifiable health information between agencies and with 13 14 15

non-Federal entities, it shall utilize, where available, health information technology systems and products that meet standards and implementation specifications adopted under section 3004 of the Public Health Service Act, as added by section 4101. (b) FEDERAL INFORMATION C OLLECTION A CTIVITIES.—With

respect to a standard or implementation

specification adopted under section 3004 of the Public Health Service Act, as added by section 4101, the President shall take measures to ensure that Federal activities involving the broad collection and submission of health information are consistent with such standard or implementation specification, respectively, within three years after HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

the date of such adoption. (c) A PPLICATION

OF

D EFINITIONS.—The definitions

contained in section 3000 of the Public Health Service Act, as

5 6 7 8 9 10 11

added by section 4101, shall apply for purposes of this part. SEC. 4112. APPLICATION TO PRIVATE ENTITIES.

Each agency (as defined in such Executive Order issued on August 22, 2006, relating to promoting quality and efficient health care in Federal government administered or sponsored health care programs) shall require in

12 13

contracts or agreements with health care providers, health

14

plans, or health insurance issuers that as each provider,

15

plan, or issuer implements, acquires, or upgrades health information technology systems, it shall utilize, where available, health information technology systems and products that meet standards and implementation specifications adopted under section 3004 of the Public Health Service Act, as added by section 4101. SEC. 4113. STUDY AND REPORTS.

(a) R EPORT ON A DOPTION OF N ATIONWIDE S YSTEM .—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

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2

1 2

committees of jurisdiction of the House of Representatives

3

and the Senate a report that—

4

(1) describes the specific actions that have been

5 6

taken by the Federal Government and private entities to

7

facilitate the adoption of a nationwide system for the

8

electronic use and exchange of health information;

9 10

(2) describes barriers to the adoption of such a nationwide system; and

11

(3) contains recommendations to achieve full 12 13 14

implementation of such a nationwide system. (b) R EIMBURSEMENT INCENTIVE S TUDY AND R EPORT.—

15

(1) S TUDY .—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) R EPORT.—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

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2

1 2

carried out under paragraph (1).

3

(c) A GING S ERVICES T ECHNOLOGY S TUDY AND R E -

4

PORT.—

5

(1) IN GENERAL.—The Secretary of Health and

6 7

Human Services shall carry out, or contract with a

8

private entity to carry out, a study of matters relating to

9

the potential use of new aging services technology to

10

assist seniors, individuals with disabilities, and their

11

caregivers throughout the aging process. 12

(2) M ATTERS TO BE STUDIED .—The study under

13 14

paragraph (1) shall include—

15

(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 HR 1 PP

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2

1 2

technology in other countries that may be

3

applied in the United States; and

4

(B) identification of—

5

(i) barriers to innovation in aging services 6

technology and devising strategies

7

for

removing such barriers; and

8 9

(ii) barriers to the adoption of aging

10

services technology by health care providers

11

and consumers and devising strategies to

12

removing such barriers.

13

(3) R EPORT.—Not later than 24 months after the

14 15

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) D EFINITIONS.—For purposes of this subsection: (A) A GING 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) S ENIOR.—The term ‘‘senior’’ has such HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

meaning as specified by the Secretary.

3

Subtitle B—Testing of Health

4

Information Technology

5 SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND

6 TECHNOLOGY TESTING.

7 8 9 10 11

(a) P ILOT T ESTING OF S TANDARDS AND IMPLEMENTATION S PECIFICATIONS.—In coordination with the HIT Standards Committee established under section 3003 of the Public Health Service Act, as added by section 4101, with respect

12 13

to the development of standards and implementation

14

specifications under such section, the Director of the

15

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) V OLUNTARY T ESTING P ROGRAM .—In coordination with the HIT Standards Committee established under section 3003 of the Public Health Service Act, as added by section 4101, with respect to the development of standards and implementation specifications under such section, the Director of the National Institute of Standards and Technology shall support the establishment of a conHR 1 PP

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1

2

2

formance testing infrastructure, including the development

3

of technical test beds. The development of this conformance

4

testing infrastructure may include a program to accredit

5 6 7 8 9

independent, non-Federal laboratories to perform testing. SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS.

(a) H EALTH C ARE INFORMATION E NTERPRISE INTEGRATION

10 11

R ESEARCH C ENTERS.— (1) IN GENERAL.—The Director of the National

Institute of Standards and Technology, in consultation

12 13

with the Director of the National Science Foundation

14

and other appropriate Federal agencies, shall establish

15

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)

R EVIEW ;

COMPETITION .—Grants

shall

be

awarded under this subsection on a merit-reviewed, competitive basis. (3) P URPOSE.—The purposes of the Centers described in paragraph (1) shall be— (A) to generate innovative approaches to health care information enterprise integration by HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

conducting cutting-edge, multidisciplinary

3

research on the systems challenges to health care

4

delivery; and

5

(B) the development and use of health in-

6 7

formation technologies and other complementary

8

fields.

9

(4) R ESEARCH AREAS.—Research areas may in-

10

clude—

11

(A) interfaces between human information 12

and communications technology systems;

13 14

(B) voice-recognition systems;

15

(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 HR 1 PP

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2

1

(H) relevant health information technology

2 3

to reduce medical errors.

4

(5) A PPLICATIONS.—An institution of higher

5 6

education (or a consortium thereof) seeking funding

7

under this subsection shall submit an application to the

8

Director of the National Institute of Standards and

9

Technology at such time, in such manner, and

10

containing such information as the Director may re-

11

quire. The application shall include, at a minimum, a 12 13

description of— (A) the research projects that will be un-

14 15

dertaken 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

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2

1

(D) how the Center will contribute to the

2 3

education and training of researchers and other

4

professionals in fields relevant to health infor-

5

mation enterprise integration.

6

(b) N ATIONAL INFORMATION T ECHNOLOGY R ESEARCH

7

D EVELOPMENT P ROGRAM .—The National

8

AND

9

High-Performance Computing Program established by

10

section 101 of the High-Performance Computing Act of

11

1991 (15 U.S.C. 5511) shall coordinate Federal research 12 13

and development programs related to the development and

14

deployment of health information technology, including ac-

15

tivities related to— (1) computer infrastructure; (2) data security; (3) development of large-scale, distributed, reliable computing systems; (4) wired, wireless, and hybrid high-speed networking; (5) development of software and software-intensive systems; (6) human-computer interaction and information management technologies; and (7) the social and economic implications of inHR 1 PP

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formation technology.

3 4 5 6 7 8 9 10 11 12 13 14 15

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1 2 3

Subtitle C—Incentives for the Use of Health Information Technology

PART

4 I—GRANTS AND LOANS FUNDING

5

SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PRO

6 GRAMS.

7 8 9 10 11 12 13 14

Title XXX of the Public Health Service Act, as added by section 4101, is amended by adding at the end the following new subtitle:

‘‘Subtitle B—Incentives for the Use of Health Information Technology ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH INFORMATION TECHNOLOGY INFRA

15

STRUCTURE.

‘‘(a) IN G ENERAL.—The Secretary shall, using amounts appropriated under section 3018, invest in the infrastructure necessary to allow for and promote the electronic exchange and use of health information for each individual in the United States consistent with the goals outlined in the strategic plan developed by the National Coordinator (and as available) under section 3001. To the greatest extent practicable, the Secretary shall ensure that any funds so appropriated shall be used for the acquisition of health information technology that meets standards and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

certification criteria adopted before the date of the enact-

3

ment of this title until such date as the standards are

4

adopted under section 3004. The Secretary shall invest

5 6

funds through the different agencies with expertise in such

7

goals, such as the Office of the National Coordinator for

8

Health Information Technology, the Health Resources and

9

Services Administration, the Agency for Healthcare Re-

10

search and Quality, the Centers of Medicare & Medicaid

11

Services, the Centers for Disease Control and Prevention, 12 13

and the Indian Health Service to support the following: ‘‘(1) Health information technology architecture

14 15

that will support the nationwide electronic exchange and use of health information in a secure, private, and accurate manner, including connecting health information exchanges, and which may include updating and implementing the infrastructure necessary within different agencies of the Department of Health and Human Services to support the electronic use and exchange of health information. ‘‘(2) Development and adoption of appropriate certified electronic health records for categories of providers, as defined in section 3000, not eligible for

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1 2

support under title XVIII or XIX of the Social Security

3

Act for the adoption of such records.

4

‘‘(3) Training on and dissemination of information

5 6

on best practices to integrate health information

7

technology, including electronic health records, into a

8

provider’s delivery of care, consistent with best

9

practices learned from the Health Information Tech-

10

nology Research Center developed under section

11

3012(b), including community health centers receiving 12 13

assistance under section 330, covered entities under

14

section 340B, and providers participating in one or

15

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

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2

1

holders of individually identifiable health information.

2 3

‘‘(7) Improvement and expansion of the use of

4

health information technology by public health de-

5

partments.

6 7

‘‘(8) Provision of $300 million to support regional

8

or sub-national efforts towards health information

9

exchange.

10

‘‘(b) C OORDINATION .—The Secretary shall ensure funds

11

under this section are used in a coordinated manner with other 12 13

health information promotion activities. ‘‘(c) A DDITIONAL U SE OF FUNDS.—In addition to using

14 15

funds as provided in subsection (a), the Secretary may use amounts appropriated under section 3018 to carry out health information technology activities that are provided for under laws in effect on the date of the enactment of this title. ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE MENTATION ASSISTANCE.

‘‘(a) H EALTH INFORMATION T ECHNOLOGY E XTENSION P ROGRAM .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

National Coordinator, shall establish a health information

3

technology extension program to provide health information

4

technology assistance services to be carried out through the

5 6

Department of Health and Human Services. The National

7

Coordinator shall consult with other Federal agencies with

8

demonstrated experience and expertise in information

9

technology services, such as the National Institute of

10

Standards and Technology, in developing and implementing

11

this program. 12 13 14

‘‘(b) H EALTH INFORMATION T ECHNOLOGY R ESEARCH C ENTER.—

15

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

from—

3

‘‘(A) other Federal agencies with dem-

4

onstrated experience and expertise in information

5

technology services such as the National Institute

6

of Standards and Technology;

7

‘‘(B) users of health information technology,

8 9

such as providers and their support and clerical

10

staff and others involved in the care and care

11

coordination of patients, from the health care and 12

health information technology industry; and

13

‘‘(C) others as appropriate. ‘‘(3) P URPOSES.—The purposes of the Center are

14 15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

electronic exchange and use of information

3

including through the regional centers described

4

in subsection (c);

5

‘‘(D) provide technical assistance for the

6 7

establishment and evaluation of regional and local

8

health information networks to facilitate

9

electronic exchange of information across health

10

the

care settings and improve the quality of health care;

11 12

‘‘(E) provide technical assistance for the

13 14

development and dissemination of solutions to

15

barriers to the exchange of electronic health information; and ‘‘(F) learn about effective strategies to adopt and utilize health information technology medically underserved communities. ‘‘(c) H EALTH INFORMATION T ECHNOLOGY R EGIONAL E XTENSION C ENTERS.— ‘‘(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 dissemi-

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in

2

1 2

nate best practices and other information learned from

3

the Center to support and accelerate efforts to adopt,

4

implement, and effectively utilize health information

5 6

technology that allows for the electronic exchange and

7

use of information in compliance with standards,

8

implementation specifications, and certification criteria

9

adopted under section 3004. Activities conducted

10

under this subsection shall be consistent with the

11

strategic plan developed by the National Coordinator, 12 13

(and, as available) under section 3001. ‘‘(2) A FFILIATION .—Regional centers shall be

14 15

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) O BJECTIVE .—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

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1 2

electronic health records, to healthcare providers

3

nationwide;

4

‘‘(B) broad participation of individuals from

5

industry, universities, and State governments;

6

‘‘(C) active dissemination of best practices

7 8

and research on the implementation, effective use,

9

upgrading, and ongoing maintenance of health

10

information technology, including electronic health

11

records, to health care providers in order to 12

improve the quality of healthcare and protect the

13

privacy and security of health information;

14 15

‘‘(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

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1 2

accurate electronic use and exchange of health

3

information.

4

‘‘(4) R EGIONAL ASSISTANCE.—Each regional center

5 6

shall aim to provide assistance and education to all

7

providers in a region, but shall prioritize any direct

8

assistance first to the following:

9

‘‘(A) Public or not-for-profit hospitals or

10

critical access hospitals.

11

‘‘(B) Federally qualified health centers (as 12

defined in section 1861(aa)(4) of the Social Se-

13

curity Act).

14 15

‘‘(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

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1

2

2

percent of the capital and annual operating and

3

maintenance funds required to create and maintain such

4

a center, except in an instance of national economic

5 6

conditions which would render this cost- share

7

requirement detrimental to the program and upon

8

notification to Congress as to the justification to waive

9

the cost-share requirement.

10

‘‘(6) N OTICE OF PROGRAM DESCRIPTION AND

11 AVAILABILITY OF FUNDS.—The

Secretary shall publish in

12 13

the Federal Register, not later than 90 days after the

14

date of the enactment of this title, a draft description of

15

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.

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1

‘‘(7) A PPLICATION REVIEW .—The Secretary shall

2 3 4

subject each application under this subsection to merit review. In making a decision whether to approve such

5 6

application and provide financial support, the

7

Secretary shall consider at a minimum the merits of the

8

application, including those portions of the application

9

regarding—

10

‘‘(A) the ability of the applicant to provide

11

assistance under this subsection and utilization of 12

health information technology appropriate to the

13 14

needs of particular categories of health care

15

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) B IENNIAL EVALUATION .—Each regional center which receives financial assistance under this subsection shall be evaluated biennially by an evaluation panel appointed by the Secretary. Each evalua tion

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1 2

panel shall be composed of private experts, none of

3

whom shall be connected with the center involved, and

4

of Federal officials. Each evaluation panel shall

5 6

measure the involved center’s performance against the

7

objective specified in paragraph (3). The Secretary

8

shall not continue to provide funding to a regional

9

center unless its evaluation is overall positive.

10

‘‘(9) C ONTINUING SUPPORT.—After the second

11

year of assistance under this subsection, a regional 12 13

center may receive additional support under this

14

subsection if it has received positive evaluations and a

15

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 INFOR MATION TECHNOLOGY.

‘‘(a) IN G ENERAL.—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) P LANNING G RANTS.—The Secretary may award a HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

grant to a State or qualified State-designated entity (as

3

described in subsection (f)) that submits an application to

4

the Secretary at such time, in such manner, and containing

5 6 7

such information as the Secretary may specify, for the purpose of planning activities described in subsection (d).

8

‘‘(c) IMPLEMENTATION G RANTS.—The Secretary may

9

award a grant to a State or qualified State designated entity

10

that—

11

‘‘(1) has submitted, and the Secretary has ap12 13

proved, a plan described in subsection (e) (regardless

14

of whether such plan was prepared using amounts

15

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) U SE 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

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the authorized and secure nationwide electronic use and

3

exchange of health information;

4

‘‘(2) identifying State or local resources available

5 6 7

towards a nationwide effort to promote health information technology; ‘‘(3) complementing other Federal grants, pro-

8 9 10

grams, and efforts towards the promotion of health information technology;

11

‘‘(4) providing technical assistance for the de12 13 14

velopment and dissemination of solutions to barriers to the exchange of electronic health information;

15

‘‘(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;

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1

‘‘(9) promoting the use of electronic health records

2 3 4

for quality improvement including through

quality

measures reporting; and

5

‘‘(10) such other activities as the Secretary may

6 7

specify.

8

‘‘(e) P LAN .—

9 10 11

‘‘(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-

12 13

designated entity within such State to facilitate and

14

expand the electronic movement and use of health

15

information among organizations according to nationally recognized standards and implementation specifications. ‘‘(2) R EQUIRED 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 HR 1 PP

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1

‘‘(D) contain such elements as the Secretary

2 3 4

may require. ‘‘(f)

Q UALIFIED S TATE -D ESIGNATED E NTITY .—For

5 6 7

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

8 9

receive awards under this section;

10

‘‘(2) be a not-for-profit entity with broad stake-

11

holder representation on its governing board; 12

‘‘(3) demonstrate that one of its principal goals is

13 14

to use information technology to improve health care

15

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)

R EQUIRED C ONSULTATION .—In

carrying

out

activities described in subsections (b) and (c), a State or

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1 2

qualified State-designated entity shall consult with and

3

consider the recommendations of—

4

‘‘(1) health care providers (including providers that

5 6 7

provide services to low income and underserved populations);

8

‘‘(2) health plans;

9

‘‘(3) patient or consumer organizations that

10

represent the population to be served;

11

‘‘(4) health information technology vendors; ‘‘(5)

12

health care purchasers and employers; ‘‘(6)

13 14

public health agencies;

15

‘‘(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) C ONTINUOUS IMPROVEMENT.—The Secretary shall annually evaluate the activities conducted under this section and shall, in awarding grants under this section, HR 1 PP

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1 2

implement the lessons learned from such evaluation in a

3

manner so that awards made subsequent to each such

4

evaluation are made in a manner that, in the determination

5 6

of the Secretary, will lead towards the greatest improvement

7

in quality of care, decrease in costs, and the most effective

8

authorized and secure electronic exchange of health

9

information.

10

‘‘(i) R EQUIRED M ATCH .—

11

‘‘(1) IN GENERAL.—For a fiscal year (beginning

12 13

with fiscal year 2011), the Secretary may not make a

14

grant under this section to a State unless the State

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

Federal funds provided under the grant.

3

‘‘(2) A UTHORITY TO REQUIRE STATE MATCH FOR

4

FISCAL YEARS BEFORE FISCAL YEAR 2011 .—For

any fiscal

5 6

year during the grant program under this section before

7

fiscal year 2011, the Secretary may determine the

8

extent to which there shall be required a non-Federal

9

contribution from a State receiving a grant under this

10 11

section. ‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN

12 TRIBES FOR THE DEVELOPMENT OF LOAN

13 PROGRAMS TO FACILITATE THE WIDE

14

SPREAD ADOPTION OF CERTIFIED EHR TECH

15

NOLOGY.

‘‘(a) IN G ENERAL.—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) E LIGIBLE E NTITY D EFINED .—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 conHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

taining such information as the National Coordinator

3

may require;

4

‘‘(2) submits to the National Coordinator a

5 6

strategic plan in accordance with subsection (d) and

7

provides to the National Coordinator assurances that

8

the entity will update such plan annually in accordance

9

with such subsection;

10

‘‘(3) provides assurances to the National Coor-

11

dinator that the entity will establish a Loan Fund in 12 13

accordance with subsection (c); ‘‘(4) provides assurances to the National Coor-

14 15

dinator 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

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2

1 2

the Social Security

3

program under title XIX of such Act; or

4

Act or the Medicaid

‘‘(ii) the Secretary in the case of other

5

entities;

6

‘‘(B) demonstrate to the satisfaction of the

7 8

Secretary (through criteria established by the

9

Secretary) that any certified EHR technology

10

purchased, improved, or otherwise financially

11

supported under a loan under this section is used 12

to exchange health information in a manner that, in

13 14

accordance with law and standards (as adopted

15

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

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2

1 2

loan, including the type of resources expected to be

3

involved and any such other information as the State

4

or Indian Tribe, respectively, may require; and ‘‘(5)

5

agrees to provide matching funds in accordance with

6

subsection (h).

7 8

‘‘(c) E STABLISHMENT OF FUND .—For purposes of

9

subsection (b)(3), an eligible entity shall establish a certified

10

EHR technology loan fund (referred to in this subsection as

11

a ‘Loan Fund’) and comply with the other requirements 12 13

contained in this section. A grant to an eligible entity under

14

this section shall be deposited in the Loan Fund established

15

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) S TRATEGIC P LAN .— ‘‘(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) C ONTENTS.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

through the Loan Fund during such year.

2 3

‘‘(B) A description of the criteria and methods

4

established for the distribution of funds from the

5

Loan Fund during the year.

6 7

‘‘(C) A description of the financial status of

8

the Loan Fund as of the date of submission of the

9

plan.

10

‘‘(D) The short-term and long-term goals of

11

the Loan Fund. 12 13

‘‘(e) U SE OF FUNDS.—Amounts deposited in a Loan

14

Fund, including loan repayments and interest earned on

15

such amounts, shall be used only for awarding loans or loan guarantees, making reimbursements described in subsection (g)(4)(A), or as a source of reserve and security for leveraged loans, the proceeds of which are deposited in the Loan Fund established under subsection (c). Loans under this section may be used by a health care provider to— ‘‘(1) facilitate the purchase of certified EHR technology; ‘‘(2) enhance the utilization of certified EHR technology; ‘‘(3) train personnel in the use of such technology;

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2

1 2

or

3 4

‘‘(4) improve the secure electronic exchange of health information.

5 6

‘‘(f) T YPES OF A SSISTANCE.—Except as otherwise limited

7

by applicable State law, amounts deposited into a Loan Fund

8

under this section may only be used for the following:

9 10

‘‘(1) To award loans that comply with the following:

11

‘‘(A) The interest rate for each loan shall not 12

exceed the market interest rate.

13 14

‘‘(B) The principal and interest payments on

15

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

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2

1 2

access or reduce the interest rate applicable to the

3

obligation involved.

4

‘‘(3) As a source of revenue or security for the

5 6

payment of principal and interest on revenue or general

7

obligation bonds issued by the eligible entity if the

8

proceeds of the sale of the bonds will be deposited into

9

the Loan Fund.

10

‘‘(4) To earn interest on the amounts deposited

11

into the Loan Fund. 12

‘‘(5) To make reimbursements described in sub-

13 14 15

section (g)(4)(A). ‘‘(g) A DMINISTRATION OF LOAN FUNDS.— ‘‘(1) C OMBINED FINANCIAL ADMINISTRATION .— An eligible entity may (as a convenience and to unnecessary

administrative

costs)

avoid

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) C OST OF ADMINISTERING FUND .—Each eligible entity may annually use not to exceed 4 percent HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of the funds provided to the entity under a grant under

3

this section to pay the reasonable costs of the

4

administration of the programs under this section,

5 6

including the recovery of reasonable costs expended to

7

establish a Loan Fund which are incurred after the date

8

of the enactment of this title.

9 10

‘‘(3) G UIDANCE AND REGULATIONS.—The National Coordinator shall publish guidance and promulgate

11

regulations as may be necessary to carry out the 12 13

provisions of this section, including—

14

‘‘(A) provisions to ensure that each eligible

15

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) P RIVATE SECTOR CONTRIBUTIONS.— ‘‘(A) IN GENERAL.—A Loan Fund established under this section may accept contribu tions from private sector entities, except that such entities may not specify the recipient or recipients of any loan issued under this subsection. An eligible HR 1 PP

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2

1 2

entity may agree to reimburse a private sector

3

entity for any contribution made under this

4

subparagraph, except that the amount of such

5

reimbursement may not be greater than the

6

principal amount of the contribution made.

7

‘‘(B) A VAILABILITY

OF INFORMATION .—

An

eligible entity shall make publicly available

the

8 9 10

identity of, and amount contributed by, any private

11

sector entity under subparagraph (A) and may issue 12

letters of commendation or make other awards (that

13

have no financial value) to any such entity.

14 15

‘‘(h) M ATCHING R EQUIREMENTS.— ‘‘(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) D ETERMINATION OF AMOUNT OF NON FEDERAL

CONTRIBUTION .—In

determining the

amount of non-Federal contributions that an eligible HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

entity has provided pursuant to subparagraph (A), the

3

National Coordinator may not include any amounts

4

provided to the entity by the Federal Government.

5 6 7 8

‘‘(i) E FFECTIVE D ATE .—The Secretary may not make an award under this section prior to January 1, 2010. ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN

9

FORMATION TECHNOLOGY INTO CLINICAL

10 11 12

EDUCATION.

‘‘(a) IN G ENERAL.—The Secretary may award grants under this section to carry out demonstration projects to

13 14 15

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) E LIGIBILITY .—To be eligible to receive a grant under subsection (a), an entity shall— ‘‘(1) submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require; ‘‘(2) submit to the Secretary a strategic plan for integrating certified EHR technology in the clinical education of health professionals to reduce medical errors and enhance health care quality; HR 1 PP

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2

1

‘‘(3) be—

2 3

‘‘(A) a school of medicine, osteopathic

4

medicine, dentistry, or pharmacy, a graduate

5

program in behavioral or mental health, or any other 6

graduate health professions school;

7

‘‘(B) a graduate school of nursing or phy-

8 9

sician assistant studies;

10

‘‘(C) a consortium of two or more schools

11

described in subparagraph (A) or (B); or

12

‘‘(D) an institution with a graduate medical

13 14

education program in medicine, osteopathic

15

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) U SE OF FUNDS.— HR 1 PP

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2

1

‘‘(1) IN GENERAL.—With respect to a grant under

2 3

subsection (a), an eligible entity shall—

4

‘‘(A) use grant funds in collaboration with 2

5

or more disciplines; and

6 7

‘‘(B) use grant funds to integrate certified

8

EHR technology into community-based clinical

9

education.

10

‘‘(2) LIMITATION .—An eligible entity shall not

11

use amounts received under a grant under subsection 12 13 14 15

(a) to purchase hardware, software, or services. ‘‘(d) FINANCIAL S UPPORT.—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) E VALUATION .—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

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2

1 2 3 4

as is practicable. ‘‘(f) R EPORTS.—Not later than 1 year after the date of enactment of this title, and annually thereafter, the Secretary

5 6

shall submit to the Committee on Health, Education, Labor,

7

and Pensions and the Committee on Finance of the Senate,

8

and the Committee on Energy and Commerce of the House

9

of Representatives a report that—

10

‘‘(1) describes the specific projects established

11

under this section; and 12

‘‘(2) contains recommendations for Congress based

13 14 15

on the evaluation conducted under subsection (e). ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH CARE.

‘‘(a) IN G ENERAL.—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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(b) A CTIVITIES.—Activities for which assistance may

3

be provided under subsection (a) may include the following:

4 5

‘‘(1) Developing and revising curricula in medical

6 7

health informatics and related disciplines. ‘‘(2) Recruiting and retaining students to the

8 9

program involved.

10

‘‘(3) Acquiring equipment necessary for student

11

instruction in these programs, including the installation 12 13

of testbed networks for student use.

14

‘‘(4) Establishing or enhancing bridge programs in

15

the health informatics fields between community colleges and universities. ‘‘(c) P RIORITY .—In providing assistance under subsection (a), the Secretary shall give preference to the following: ‘‘(1) Existing education and training programs. ‘‘(2) Programs designed to be completed in less than six months. ‘‘(d) FINANCIAL S UPPORT.—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

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2

1 2

would render the cost-share requirement under this sub-

3

section detrimental to the program and upon notification to

4

Congress as to the justification to waive the cost-share

5 6 7

requirement. ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

8

‘‘(a) R EPORTS.—The Secretary may require that an entity

9

receiving assistance under this subtitle shall submit to the

10

Secretary, not later than the date that is 1 year after the date

11

of receipt of such assistance, a report that includes—

12

‘‘(1) an analysis of the effectiveness of the ac-

13 14

tivities for which the entity receives such assistance, as

15

compared to the goals for such activities; and ‘‘(2) an analysis of the impact of the project on health care quality and safety. ‘‘(b) R EQUIREMENT TO IMPROVE Q UALITY OF C ARE AND D ECREASE IN C OSTS.—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. HR 1 PP

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1 2 3 4 5

‘‘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.

6 7 8

Amounts so appropriated shall remain available until expended.’’. PART II—MEDICARE PROGRAM

9 10

SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

11

(a) INCENTIVE P AYMENTS.—Section 1848 of the Social

12

Security Act (42 U.S.C. 1395w–4) is amended by adding at

13 14 15

the end the following new subsection: ‘‘(o) INCENTIVES FOR A DOPTION AND M EANINGFUL U SE OF C ERTIFIED

EHR T ECHNOLOGY .—

‘‘(1) INCENTIVE PAYMENTS.— ‘‘(A) IN GENERAL.—Subject to the succeeding subparagraphs of this paragraph, with respect to covered professional services furnished by an eligible professional during a payment year (as defined in subparagraph (E)), if the eligible professional is a meaningful EHR user (as determined under paragraph (2)) for the reporting period with respect to such year, in addition to the amount otherwise paid under this part, there HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

also shall be paid to the eligible professional (or

3

to an employer or facility in the cases described

4

in clause (A) of section 1842(b)(6)), from the

5

Federal Supplementary Medical Insurance Trust

6 7

Fund established under section 1841 an amount

8

equal to 75 percent of the Secretary’s estimate

9

(based on claims submitted not later than 2

10

months after the end of the payment year) of the

11

allowed charges under this part for all such 12

covered professional services furnished by the

13

eligible professional during such year.

14 15

‘‘(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) A MOUNT.—Subject to clause (iii), the applicable amount specified in this

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2

1 2

subparagraph for an eligible professional is as

3

follows:

4

‘‘(I) For the first payment year for

5

such professional, $15,000.

6

‘‘(II) For the second payment year

7

for such professional, $12,000.

8 9

‘‘(III) For the third payment year

10

for such professional, $8,000.

11

‘‘(IV) For the fourth payment year 12

for such professional, $4,000.

13

‘‘(V) For the fifth payment year for

14 15

such professional, $2,000. ‘‘(VI) For any succeeding payment year for such professional, $0. ‘‘(iii) P HASE DOWN FOR ELIGIBLE PROFESSIONALS FIRST ADOPTING EHR AFTER 2013.—If

the first payment year for

an eligible professional is after 2013, then the amount specified in this subparagraph for a payment year for such professional is the same as the amount specified in clause (ii) for such payment year for an eligible professional whose first payment year is 2013. If the first payment year for an eligible HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

professional is after 2015 then the applicable

3

amount specified in this sub

4

paragraph for such professional for such year and

5

any subsequent year shall be $0. ‘‘(C)

6

N ON -APPLICATION TO HOSPITAL-

7

BASED ELIGIBLE

PROFESSIONALS.—

8 9

‘‘(i) IN GENERAL.—No incentive pay-

10

ment may be made under this paragraph in

11

the case of a hospital-based eligible pro12

fessional.

13

‘‘(ii) H OSPITAL-BASED ELIGIBLE PRO -

14 15

FESSIONAL.—For

purposes of clause (i), the

term ‘hospital-based eligible professional’ means, with respect to covered professional services furnished by an eligible professional during the reporting period for a payment year, an eligible professional, such as a pathologist, anesthesiologist, or emergency physician, who furnishes substantially all of such services in a hospital setting (whether inpatient or outpatient) and through the use of the facilities and equipment, including

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1 2

computer equipment, of the hospital.

3

‘‘(D) P AYMENT.—

4

‘‘(i) FORM OF PAYMENT.—The payment

5

under this paragraph may be in the form of a 6

single consolidated payment or in the form

7 8

of such periodic installments as the

9

Secretary may specify.

10

‘‘(ii) C OORDINATION OF APPLICATION

11

OF LIMITATION FOR PROFESSIONALS IN

12

DIFFERENT PRACTICES.—In

the case of an

13

eligible professional furnishing covered pro-

14

fessional services in more than one practice

15

(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) ICAID .—The

C OORDINATION

WITH MED -

Secretary shall seek, to the

maximum extent practicable, to avoid duplicative requirements from Federal and State Governments to demonstrate meanHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ingful use of certified EHR technology under

3

this title and title XIX. The Secretary may

4

also adjust the reporting periods under such

5

title and such subsections in order to carry

6

out this clause.

7

‘‘(E) P AYMENT YEAR DEFINED .— ‘‘(i) IN GENERAL.—For purposes of this

8 9 10

subsection, the term ‘payment year’ means a

11

year beginning with 2011.

12

‘‘(ii) FIRST,

13

YEAR .—The

SECOND , ETC. PAYMENT

term ‘first payment year’

14

means, with respect to covered professional

15

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) M EANINGFUL EHR USER.— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) IN GENERAL.—For purposes of para-

2 3

graph (1), an eligible professional shall be treated

4

as a meaningful EHR user for a reporting period

5

for a payment year (or, for purposes of subsection

6 7

(a)(7), for a reporting period under such

8

subsection for a year) if each of the following

9

requirements is met:

10

‘‘(i) M EANINGFUL USE OF CERTIFIED EHR

11 12

TECHNOLOGY .—The

13

demonstrates to the satisfaction of the

14

eligible professional

Secretary, in accordance with subparagraph

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

connected in a manner that provides, in

3

accordance with law and standards appli-

4

cable to the exchange of information, for the

5

electronic exchange of health information to

6 7

improve the quality of health care, such as

8

promoting care coordination.

9

‘‘(iii)

10

R EPORTING

USING EHR.—Subject

ON

MEASURES

to subparagraph (B)(ii)

11

and using such certified EHR technology, the 12

eligible professional submits in

13 14

formation for such period, in a form and

15

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

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2

1 2

care quality over time by requiring more stringent

3

measures of meaningful use selected under this

4

paragraph.

5

‘‘(B) R EPORTING ON MEASURES.—

6

‘‘(i) S ELECTION .—The Secretary shall

7 8

select measures for purposes of subparagraph

9

(A)(iii) but only consistent with the

10

following:

11

‘‘(I) The Secretary shall provide

12

preference to clinical quality measures

13 14

that have been endorsed by the entity

15

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

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2

1 2

Secretary has the capacity to accept the in-

3

formation electronically, which may be on a

4

pilot basis.

5

‘‘(iii) C OORDINATION OF REPORTING OF

6

INFORMATION .—In

7

selecting

such

8

measures, and in establishing the form and

9

manner for reporting measures under sub-

10

paragraph (A)(iii), the Secretary shall seek

11

to avoid redundant or duplicative reporting 12

otherwise required, including reporting

13 14

under subsection (k)(2)(C).

15

‘‘(C) D EMONSTRATION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

documented using certified EHR

3

technology);

4

‘‘(III) a survey response;

5

‘‘(IV) reporting under subpara6

graph (A)(iii); and

7

‘‘(V) other means specified by the

8 9

Secretary.

10

‘‘(ii) U SE OF PART D DATA.—Not-

11

withstanding sections 1860D–15(d)(2)(B)

12

and 1860D–15(f)(2), the Secretary may use

13 14

data regarding drug claims submitted for

15

purposes of section 1860D–15 that are necessary for purposes of subparagraph (A).

‘‘(3) A PPLICATION .— ‘‘(A) P HYSICIAN RULES.—Paragraphs

REPORTING

SYSTEM

(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) C OORDINATION WITH OTHER PAY MENTS.—The

provisions of this subsection shall

not be taken into account in applying the proviHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

sions of subsection (m) of this section and of

3

section 1833(m) and any payment under such

4

provisions shall not be taken into account in

5

computing allowable charges under this sub-

6

section.

7

‘‘(C) LIMITATIONS ON REVIEW .—There shall

8 9

be no administrative or judicial review under

10

section 1869, section 1878, or otherwise of the

11

determination of any incentive payment under this 12

subsection and the payment adjustment under

13 14

subsection (a)(7), including the determination of a

15

meaningful EHR user under paragraph (2), a limitation under paragraph (1)(B), and the exception under subsection (a)(7)(B). ‘‘(D) P OSTING 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

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2

1 2

payments under paragraph (1).

3

‘‘(4) C ERTIFIED EHR TECHNOLOGY DEFINED .— For

4

purposes of this section, the term ‘certified EHR

5 6

technology’ means a qualified electronic health record

7

(as defined in 3000(13) of the Public Health Service

8

Act) that is certified pursuant to section 3001(c)(5) of

9

such Act as meeting standards adopted under section

10

3004 of such Act that are applicable to the type of

11

record involved (as determined by the Secretary, such 12 13

as an ambulatory electronic health record for

14

office-based physicians or an inpatient hospital

15

electronic health record for hospitals). ‘‘(5) D EFINITIONS.—For purposes of this subsection: ‘‘(A)

C OVERED

SERVICES.—The

PROFESSIONAL

term ‘covered professional

services’ has the meaning given such term in subsection (k)(3). ‘‘(B) E LIGIBLE PROFESSIONAL.—The term ‘eligible professional’ means a physician, as defined in section 1861(r). ‘‘(C) R EPORTING PERIOD .—The term ‘re-

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2

1 2

porting period’ means any period (or periods),

3

with respect to a payment year, as specified by

4

the Secretary.’’.

5 6

(b) INCENTIVE P AYMENT A DJUSTMENT.—Section 1848(a)

7

of the Social Security Act (42 U.S.C. 1395w–

8

amended by adding at the end the following new paragraph:

9

‘‘(7) INCENTIVES FOR MEANINGFUL USE OF

10

4(a)) is

CERTIFIED EHR TECHNOLOGY .—

11

‘‘(A) A DJUSTMENT.— 12

‘‘(i) IN GENERAL.—Subject to sub-

13 14

paragraphs (B) and (D), with respect to

15

covered professional services furnished by an eligible professional during 2016 or any subsequent payment year, if the eligible professional is not a meaningful EHR user (as determined under subsection (o)(2)) for a reporting period for the year, the fee schedule amount for such services furnished by such professional during the year (including the fee schedule amount for pur poses of determining a payment based on such amount) shall be equal to the applicable percent of the fee schedule amount that HR 1 PP

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2

1 2

would otherwise apply to such services

3

under this subsection (determined after ap-

4

plication of paragraph (3) but without regard

5

to this paragraph).

6 7

‘‘(ii) A PPLICABLE PERCENT.—Subject to

8

clause (iii), for purposes of clause (i), the term

9

‘applicable percent’ means—

10

‘‘(I) for 2016, 99 percent;

11

‘‘(II) for 2017, 98 percent; and

12

‘‘(III) for 2018 and each subsequent

13

year, 97 percent.

14 15

‘‘(iii) A UTHORITY TO DECREASE AP PLICABLE PERCENTAGE FOR 2019 AND SUBSEQUENT YEARS.—For

2019 and each

subsequent year, if the Secretary finds that the proportion of eligible professionals who are meaningful EHR users (as determined under subsection (o)(2)) is less than 75 percent, the applicable percent shall be decreased by 1 percentage point from the applicable percent in the preceding year, but in no case shall the applicable percent be less than 95 percent. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B)

2 3

TION .—The

4

S IGNIFICANT

HARDSHIP

EXCEP-

Secretary may, on a case-by-case

basis, exempt an eligible professional from the

5

application of the payment adjustment under

6 7

subparagraph (A) if the Secretary determines,

8

subject to annual renewal, that compliance with

9

the requirement for being a meaningful EHR user

10

would result in a significant hardship, such as in

11

the case of an eligible professional who practices 12

in a rural area without sufficient Internet access.

13 14

In no case may an eligible professional be granted

15

an exemption under this subparagraph for more than 5 years. ‘‘(C) A PPLICATION 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) N ON -APPLICATION TO HOSPITALELIGIBLE PROFESSIONALS.—No

BASED

payment adjustment

may be made under subparagraph (A) in the case of hospital-based eligible professionals

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(as

2

1 2

defined

3

(o)(1)(C)(ii)).

4

in

subsection

‘‘(E) D EFINITIONS.—For purposes of this

5

paragraph:

6

‘‘(i) C OVERED PROFESSIONAL SERV-

7 8

ICES.—The

9

services’ has the meaning given such term in

10

term ‘covered

professional

subsection (k)(3).

11

‘‘(ii) E LIGIBLE PROFESSIONAL.—The 12

term ‘eligible professional’ means a physi-

13

cian, as defined in section 1861(r).

14 15

‘‘(iii) R EPORTING

PERIOD .—The

term

‘reporting period’ means, with respect to a year, a period specified by the Secretary.’’. (c) A PPLICATION TO C ERTAIN HMO-A FFILIATED E LIGIBLE P ROFESSIONALS.—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) A PPLICATION OF E LIGIBLE P ROFESSIONAL INCENTIVES FOR

C ERTAIN MA O RGANIZATIONS

FOR

A DOPTION

AND

M EANINGFUL U SE OF C ERTIFIED EHR T ECHNOLOGY .— ‘‘(1) IN GENERAL.—Subject to paragraphs (3) and

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2

1 2

(4), in the case of a qualifying MA organization, the

3

provisions of sections 1848(o) and 1848(a)(7)

4

shall

apply with respect to eligible professionals described in

5 6

paragraph (2) of the organization who the organization

7

attests under paragraph (6) to be meaningful EHR users

8

in a similar manner as they

9

professionals under such sections. Incentive payments

10

under paragraph (3) shall be

apply to eligible

made to and payment

11

adjustments under paragraph 12 13

(4) shall apply to such qualifying organizations. ‘‘(2) E LIGIBLE PROFESSIONAL DESCRIBED .— With

14 15

respect to a qualifying MA organization, an eligible professional described in this paragraph is an eligible professional (as defined for purposes of section 1848(o)) who— ‘‘(A)(i) is employed by the organization; or ‘‘(ii)(I) is employed by, or is a partner of, an entity that through contract with the organization furnishes at least 80 percent of the entity’s patient care services to enrollees of such organization; and ‘‘(II) furnishes at least 80 percent of the professional services of the eligible professional to HR 1 PP

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2

1

enrollees of the organization; and

2 3

‘‘(B) furnishes, on average, at least 20 hours

4

per week of patient care services.

5

‘‘(3) E LIGIBLE PROFESSIONAL INCENTIVE PAY -

6 7

MENTS.—

‘‘(A) IN GENERAL.—In applying section

8 9

1848(o) under paragraph (1), instead of the ad-

10

ditional

payment

amount

under

11

section 1848(o)(1)(A) and subject to 12

subparagraph (B), the Secretary may substitute an

13 14

amount determined by the Secretary to the extent

15

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) A VOIDING DUPLICATION OF PAYMENTS.—

‘‘(i) IN GENERAL.—If an eligible professional described in paragraph (2) is eligible for the maximum incentive payment under section 1848(o)(1)(A) for the same

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2

1 2

payment period, the payment incentive shall

3

be made only under such section and not

4

under this subsection.

5

‘‘(ii) M ETHODS.—In the case of an el-

6

igible professional described in paragraph

7

(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 pay-

8 9 10 11 12

ments are not made with respect to an

13 14

eligible professional both under this

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

year for all eligible professionals with respect to

3

such organization.

4

‘‘(4) P AYMENT ADJUSTMENT.—

5

‘‘(A) IN GENERAL.—In applying section 6

1848(a)(7) under paragraph (1), instead of the

7 8

payment adjustment being an applicable percent of

9

the fee schedule amount for a year under such

10

section, subject to subparagraph (D), the payment

11

adjustment under paragraph

12

(1) shall be equal to the percent specified in

13 14

subparagraph (B) for such year of the payment

15

amount otherwise provided under this section for such year. ‘‘(B)

S PECIFIED

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(C) for the year.

3

‘‘(C) M EDICARE PHYSICIAN EXPENDITURE

4

PROPORTION .—The

Medicare physician expend-

5

iture proportion under this subparagraph for a 6

year is the Secretary’s estimate of the proportion,

7 8

of the expenditures under parts A and B that are

9

not attributable to this part, that are attributable to

10

expenditures for physicians’ services.

11

‘‘(D) A PPLICATION OF PAYMENT ADJUST-

12 MENT.—In

13

the case that a qualifying MA orga-

14

nization attests that not all eligible professionals

15

are meaningful EHR users with respect to a year, the Secretary shall apply the payment adjustment under this paragraph based on the proportion of such eligible professionals that are not meaningful EHR users for such year. ‘‘(5) FINED .—In

Q UALIFYING

MA

ORGANIZATION

DE -

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) M EANINGFUL EHR USER ATTESTATION .— For HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

purposes of this subsection and subsection (m), a

3

qualifying MA organization shall submit an attestation,

4

in a form and manner specified by the Secretary which

5 6

may include the submission of such attestation as part

7

of submission of the initial bid under section

8

1854(a)(1)(A)(iv), identifying—

9

‘‘(A) whether each eligible professional de-

10

scribed in paragraph (2), with respect to such

11

organization is a meaningful EHR user (as defined 12

in section 1848(o)(2)) for a year specified by the

13

Secretary; and

14 15

‘‘(B) whether each eligible hospital described in subsection (m)(1), with respect to such organization, is a meaningful EHR user (as defined in section 1886(n)(3)) for an applicable period specified by the Secretary.’’. (d) C ONFORMING A MENDMENTS.—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) HR 1 PP

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2

1

and 1886(h)’’; and

2 3

(B) in paragraph (6)(A), by inserting after

4

‘‘under part B,’’ the following: ‘‘excluding ex-

5

penditures attributable to subsections (a)(7) and

6 7

(o) of section 1848,’’; and

8

(3) in subsection (f), by inserting ‘‘and for payments

9 10

under subsection (l)’’ after ‘‘with the organization’’. (e)

C ONFORMING

A MENDMENTS

TO

E-

11

P RESCRIBING .— 12

(1) Section 1848(a)(5)(A) of the Social Security

13 14

Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended—

15

(A) in clause (i), by striking ‘‘or any subsequent year’’ and inserting ‘‘, 2013, 2014, or 2015’’; and (B) in clause (ii), by striking ‘‘and each subsequent year’’ and inserting ‘‘and 2015’’. (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w–4(m)(2)) is amended— (A) in subparagraph (A), by striking ‘‘For 2009’’ and inserting ‘‘Subject to subparagraph (D), for 2009’’; and (B) by adding at the end the following new

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2

1

subparagraph:

2 3

‘‘(D) LIMITATION WITH RESPECT TO EHR

4

INCENTIVE PAYMENTS.—The

provisions of this

5

paragraph shall not apply to an eligible profes-

6 7

sional (or, in the case of a group practice under

8

paragraph (3)(C), to the group practice) if, for the

9

reporting period the eligible professional (or

10

group practice) receives an incentive payment

11

under subsection (o)(1)(A) with respect to a 12

certified EHR technology (as defined in sub

13 14

section (o)(4)) that has the capability of electronic

15

prescribing.’’. SEC. 4312. INCENTIVES FOR HOSPITALS.

(a) INCENTIVE P AYMENT.—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 A DOPTION AND M EANINGFUL U SE OF C ERTIFIED

EHR T ECHNOLOGY .—

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

determined under paragraph (3)) for the reporting

3

period with respect to such year, in addition to the

4

amount otherwise paid under this section, there also

5 6

shall be paid to the eligible hospital, from the Federal

7

Hospital Insurance Trust Fund established under

8

section 1817, an amount equal to the applicable

9

amount specified in paragraph (2)(A) for the hospital

10

for such payment year.

11

‘‘(2) P AYMENT AMOUNT.— 12

‘‘(A) IN GENERAL.—Subject to the suc-

13 14

ceeding subparagraphs of this paragraph, the

15

applicable amount specified in this subpara graph 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) M EDICARE SHARE.—The Medicare HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

share as specified in subparagraph

3

(D) for the hospital for a period selected by

4

the Secretary with respect to such payment

5

year.

6

‘‘(iii)

7

T RANSITION

FACTOR.—The

8

transition factor specified in subparagraph

9

(E) for the hospital for the payment year. ‘‘(B)

10

B ASE AMOUNT.—The base amount specified in this

11

subparagraph is $2,000,000. 12

‘‘(C) D ISCHARGE RELATED AMOUNT.—The

13 14

discharge related amount specified in this sub-

15

paragraph for a 12-month period selected by the Secretary shall be determined as the sum of the amount, based upon total discharges (re gardless of any source of payment) for the period, for each discharge up to the 23,000th discharge as follows: ‘‘(i) For the 1,150th through the 23,000th discharge, $200. ‘‘(ii) For any discharge greater than the 23,000th, $0. ‘‘(D) M EDICARE SHARE.—The Medicare share

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2

1 2

specified under this subparagraph for a hospital

3

for a period selected by the Secretary for a

4

payment year is equal to the fraction— ‘‘(i) the

5

numerator of which is the sum (for such period

6

and with respect to the hospital) of—

7 8

‘‘(I) the number of inpatient-bed-

9

days (as established by the Secretary)

10

which are attributable to individuals with

11

respect to whom payment may be made 12

under part A; and

13

‘‘(II) the number of inpatient-

14 15

bed-days (as so established) which are attributable to individuals who are enrolled with a Medicare Advantage organization under part C; and ‘‘(ii) the denominator of which is the product of— ‘‘(I) the total number of inpatient-bed-days with respect to the hospital during such period; and ‘‘(II) the total amount of the hospital’s charges during such period, not

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2

1 2

including any charges that are attrib-

3

utable to charity care (as such term is

4

used for purposes of hospital cost re-

5

porting under this title), divided by the

6 7

total amount of the hospital’s charges

8

during such period.

9

Insofar as the Secretary determines that data are

10

not available on charity care necessary to

11

calculate the portion of the formula specified in 12

clause (ii)(II), the Secretary shall use data on

13 14

uncompensated care and may adjust such data so

15

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.

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2

1 2

‘‘(E) T RANSITION FACTOR SPECIFIED .— ‘‘(i)

3

IN GENERAL.—Subject to clause (ii), the

4

transition factor specified in this

5

subparagraph for an eligible hospital for a

6

payment year is as follows:

7

‘‘(I) For the first payment year for

8 9

such hospital, 1.

10

‘‘(II) For the second payment year

11

for such hospital, 3' 4.

12

‘‘(III) For the third payment year

13

for such hospital, 1' 2.

14 15

‘‘(IV) For the fourth payment year for such hospital, 1' 4. ‘‘(V) For any succeeding payment year for such hospital, 0. ‘‘(ii) P HASE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

which the first payment year is 2013. If the

3

first payment year for an eligible hospital is

4

after 2015 then the transition factor specified

5

in this subparagraph for such hospital and

6 7

for such year and any subsequent year shall

8

be 0.

9

‘‘(F) FORM OF PAYMENT.—The payment under

10

this subsection for a payment year may be in the

11

form of a single consolidated payment or in the 12

form of such periodic installments as the Secretary

13

may specify.

14 15

‘‘(G) P AYMENT 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, YEAR .—The

SECOND , ETC. PAYMENT

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 pay ment year’, ‘third payment year’, and ‘fourth HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

payment year’ mean, with respect

3

eligible

4

hospital,

each

to an

successive

year

immediately following the first payment year

5

for that hospital.

6

‘‘(3) M EANINGFUL EHR USER.—

7

‘‘(A) IN GENERAL.—For purposes of para-

8 9

graph (1), an eligible hospital shall be treated as a

10

meaningful EHR user for a reporting period for a

11

payment year (or, for purposes of subsection

12

(b)(3)(B)(ix), for a reporting period under such

13 14

subsection for a fiscal year) if each of the

15

following requirements are met: ‘‘(i) M EANINGFUL 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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

such certified EHR technology is connected

3

in a manner that provides, in accordance

4

with law and standards applicable to the

5

exchange of information, for the electronic

6 7

exchange of health information to improve

8

the quality of health care, such as promoting

9

care coordination.

10

‘‘(iii)

R EPORTING

ON

MEASURES

11 USING EHR.—Subject

to subparagraph (B)(ii)

12

and using such certified EHR technology, the

13 14

eligible hospital submits information for such

15

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) R EPORTING ON MEASURES.— ‘‘(i) S ELECTION .—The Secretary shall select measures for purposes of subparagraph HR 1 PP

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2

1 2

(A)(iii) but only consistent with the

3

following:

4

‘‘(I) The Secretary shall provide

5 6

preference to clinical quality measures

7

that have been selected for purposes of

8

applying subsection (b)(3)(B)(viii) or

9

that have been endorsed by the entity

10 11

with a contract with the Secretary under

12

section 1890(a).

13

‘‘(II) Prior to any measure (other

14

than a clinical quality measure that has

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Secretary has the capacity to accept the in-

3

formation electronically, which may be on a

4

pilot basis.

5

‘‘(iii) C OORDINATION OF REPORTING OF

6

INFORMATION .—In

7

selecting

such

8

measures, and in establishing the form and

9

manner for reporting measures under sub-

10

paragraph (A)(iii), the Secretary shall seek

11

to avoid redundant or duplicative reporting 12

with reporting otherwise required, including

13 14

reporting

under subsection

15

(b)(3)(B)(viii). ‘‘(C) D EMONSTRATION OF MEANINGFUL USE OF CERTIFIED

EHR TECHNOLOGY

AND

INFORMATION

EXCHANGE .—

‘‘(i) IN GENERAL.—A hospital may satisfy the demonstration requirement of clauses (i) and (ii) of subparagraph (A) through means specified by the Secretary,

which may

include— ‘‘(I) an attestation; ‘‘(II) the submission of claims with appropriate coding (such as a HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

code

2

1 2

indicating that inpatient care

3

documented

4

using

certified

was EHR

technology);

5

‘‘(III) a survey response;

6

‘‘(IV) reporting under subpara-

7

graph (A)(iii); and

8 9

‘‘(V) other means specified by the

10

Secretary.

11 12

‘‘(ii) U SE OF PART D DATA.—Not-

13

withstanding sections 1860D–15(d)(2)(B)

14

and 1860D–15(f)(2), the Secretary may use

15

data regarding drug claims submitted for purposes of section 1860D–15 that are necessary for purposes of subparagraph (A).

‘‘(4) A PPLICATION .— ‘‘(A) LIMITATIONS ON REVIEW .—There shall be no administrative or judicial review under section 1869, section 1878, or otherwise of the determination of any incentive payment under this subsection and the payment adjustment under subsection (b)(3)(B)(ix), including the

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2

1 2

determination of a meaningful EHR user under

3

paragraph (3), determination of measures

4

applicable to services furnished by eligible

5

hospitals under this subsection, and the exception

6

under subsection (b)(3)(B)(ix)(II).

7 8

‘‘(B) P OSTING ON WEBSITE .—The Secretary

9

shall post on the Internet website of the Centers

10

for Medicare & Medicaid Services, in an easily

11

understandable format, a list of the 12

names of the eligible hospitals that are meaningful

13 14

EHR users under this subsection or subsection

15

(b)(3)(B)(ix) and other relevant data as determined appropriate by the Secretary. The Secretary shall ensure that a hospital has the opportunity to review the other relevant data that are to be made public with respect to the hospital prior to such data being made public. ‘‘(5) C ERTIFIED EHR TECHNOLOGY DEFINED .— The term ‘certified EHR technology’ has the meaning given such term in section 1848(o)(4). ‘‘(6) D EFINITIONS.—For purposes of this subsection: ‘‘(A) E LIGIBLE HOSPITAL.—The term ‘eligible

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2

1

hospital’ means a subsection (d) hospital.

2 3

‘‘(B) R EPORTING PERIOD .—The term ‘re-

4

porting period’ means any period (or periods),

5

with respect to a payment year, as specified by

6

the Secretary.’’.

7 8 9 10

(b) INCENTIVE M ARKET B ASKET A DJUSTMENT.— Section 1886(b)(3)(B) of the Social Security Act (42

U.S.C.

1395ww(b)(3)(B)) is amended—

11

(1) in clause (viii)(I), by inserting ‘‘(or, beginning 12 13 14

with fiscal year 2016, by one-quarter)’’ after ‘‘2.0 percentage points’’; and

15

(2) by adding at the end the following new clause: ‘‘(ix)(I) For purposes of clause (i) for fiscal year 2016 and each subsequent fiscal year, in the case of an eligible hospital (as defined in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined in subsection (n)(3)) for the reporting period for such fiscal year, three- quarters of the applicable percentage increase otherwise applicable under clause (i) for such fiscal year shall be reduced by 33 1' 3 percent for fiscal year 2016, 66 2' 3 percent for fiscal year 2017, and 100 percent for fiscal year 2018 and each

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2

1 2

subsequent fiscal year. Such reduction shall apply only with

3

respect to the fiscal year involved and the Secretary shall

4

not take into account such reduction in computing the

5 6 7

applicable percentage increase under clause (i) for a subsequent fiscal year.

8

‘‘(II) The Secretary may, on a case-by-case basis, ex-

9

empt a subsection (d) hospital from the application of sub-

10

clause (I) with respect to a fiscal year if the Secretary

11

determines, subject to annual renewal, that requiring such 12 13

hospital to be a meaningful EHR user during such fiscal

14

year would result in a significant hardship, such as in the

15

case of a hospital in a rural area without sufficient Internet access. In no case may a hospital be granted an exemption under this subclause for more than 5 years. ‘‘(III) For fiscal year 2016 and each subsequent fiscal year, a State in which hospitals are paid for services under section 1814(b)(3) shall adjust the payments to each subsection (d) hospital in the State that is not a meaningful EHR user (as defined in subsection (n)(3)) in a manner that is designed to result in an aggregate reduction in payments to hospitals in the State that is equivalent to the aggregate reduction that would have occurred if payments had been

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2

1 2

reduced to each subsection

3

(d) hospital in the State in a manner comparable to the

4

reduction under the previous provisions of this clause. The

5 6

State shall report to the Secretary the methodology it will use

7

to make the payment adjustment under the previous sentence.

8

‘‘(IV) For purposes of this clause, the term ‘reporting

9

period’ means, with respect to a fiscal year, any period (or

10

periods), with respect to the fiscal year, as specified by the

11

Secretary.’’. 12 13

(c) A PPLICATION TO C ERTAIN HMO-A FFILIATED

14

E LIGIBLE H OSPITALS.—Section 1853 of the Social Security

15

Act (42 U.S.C. 1395w–23), as amended by section 4311(c), is further amended by adding at the end the following new subsection: ‘‘(m) A PPLICATION OF E LIGIBLE H OSPITAL INCENTIVES FOR C ERTAIN

MA O RGANIZATIONS FOR A DOPTION AND

M EANINGFUL U SE OF C ERTIFIED EHR T ECHNOLOGY .— ‘‘(1) A PPLICATION .—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

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2

1 2

which the organization attests under subsection (l)(6)

3

to be meaningful EHR users in a similar manner as they

4

apply to eligible hospitals under such sections.

5 6

Incentive payments under paragraph (3) shall be made

7

to and payment adjustments under paragraph (4) shall

8

apply to such qualifying organizations.

9 10

‘‘(2) E LIGIBLE HOSPITAL DESCRIBED .—With respect to a qualifying MA organization, an eligible

11

hospital described in this paragraph is an eligible 12 13

hospital that is under common corporate governance

14

with such organization and serves individuals enrolled

15

under an MA plan offered by such organization. ‘‘(3) E LIGIBLE 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

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2

1

previous sentence, the Secretary—

2 3

‘‘(i) shall, insofar as data to determine

4

the discharge related amount under section

5

1886(n)(2)(C) for an eligible hospital are not

6 7

available to the Secretary, use such

8

alternative data and methodology to estimate

9

such discharge related amount as the

10

Secretary determines appropriate; and ‘‘(ii)

11

shall, insofar as data to determine the 12

medicare share described in section

13 14

1886(n)(2)(D) for an eligible hospital are not

15

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 individ uals for whom payment may be made under part A or individuals enrolled in an MA plan under a Medicare Advantage organization under this part as a proportion of the total number of

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2

1 2

patient-bed-days (or discharges) with

3

respect to such hospital during such period.

4

‘‘(B) A VOIDING DUPLICATION OF PAYMENTS.—

5 6 7

‘‘(i) IN GENERAL.—In the case of a

8

hospital that for a payment year is an eligible

9

hospital described in paragraph (2), is an

10

eligible hospital under section 1886(n), and

11

for which at least one-third of their 12

discharges (or bed-days) of Medicare

13 14

patients for the year are covered under part

15

A, payment for the payment year shall be made only under section 1886(n) and not under this subsection. ‘‘(ii) M ETHODS.—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 pay-

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2

1 2

ments are not made with respect to an

3

eligible hospital both under this

4

subsection and under section 1886(n);

5

and

6

‘‘(II) to collect data from Medicare

7 8

Advantage organizations to ensure against such

9

duplicate payments. ‘‘(4) P AYMENT

10

ADJUSTMENT.—

11

‘‘(A) Subject to paragraph (3), in the case of 12

a qualifying MA organization (as defined in

13 14

section 1853(l)(5)), if, according to the attestation

15

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

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2

1 2

such period of the payment amount otherwise

3

provided under this section for such period.

4

‘‘(B)

S PECIFIED

PERCENT .—The

percent

5

specified under this subparagraph for a year is 100

6 7

percent minus a number of percentage points equal

8

to the product of—

9

‘‘(i) the number of the percentage point

10

reduction effected under section

11

1886(b)(3)(B)(ix)(I) for the period; and ‘‘(ii) 12

the Medicare hospital expenditure proportion

13 14

specified in subparagraph

15

(C) for the year. ‘‘(C) M EDICARE 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) A PPLICATION OF PAYMENT ADJUSTMENT.—In

the case that a qualifying MA orga-

nization attests that not all eligible hospitals are meaningful EHR users with respect to an HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

applicable period, the Secretary shall apply the

3

payment adjustment under this paragraph based

4

on a methodology specified by the Secretary,

5

taking into account the proportion of such eligible

6 7

hospitals, or discharges from such hospitals, that

8

are not meaningful EHR users for such period.’’.

9

(d) C ONFORMING A MENDMENTS.—

10 11

(1) Section 1814(b) of the Social Security Act (42 U.S.C. 1395f(b)) is amended—

12

(A) in paragraph (3), in the matter preceding

13 14

subparagraph (A), by inserting ‘‘, subject to

15

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 ‘‘and 1886(h)(3)(D)’’

and

striking

i n s e r t i n g

‘‘1886(h)(3)(D), and 1853(m)’’. (3) Section 1853 of the Social Security Act (42 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

U.S.C.

3

section 4311(d)(1), is amended—

4

1395w–23), as

amended

by

(A) in subsection (c)—

5

(i) in paragraph (1)(D)(i), by striking 6

‘‘1848(o)’’ and inserting ‘‘, 1848(o), and

7

1886(n)’’; and

8 9

(ii) in paragraph (6)(A), by inserting

10

‘‘and subsections (b)(3)(B)(ix) and (n) of

11

section 1886’’ after ‘‘section 1848’’; and

12

(B) in subsection (f), by inserting ‘‘and

13 14

subsection (m)’’ after ‘‘under subsection (l)’’.

15

SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IM PLEMENTATION FUNDING.

(i) P REMIUM H OLD H ARMLESS.— (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) P AYMENT.—Section 1844(a) of such Act (42 U.S.C. 1395w(a)) is amended— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(A) in paragraph (2), by striking the period at

2 3

the end and inserting ‘‘; plus’’; and

4

(B) by adding at the end the following new

5

paragraph:

6 7

‘‘(3) a Government contribution equal to the

8

amount of payment incentives payable under sections

9

1848(o) and 1853(l)(3).’’.

10

(b) M EDICARE IMPROVEMENT FUND .—Section 1898 of

11

the Social Security Act (42 U.S.C. 1395iii), as added by 12 13

section 7002(a) of the Supplemental Appropriations Act,

14

2008 (Public Law 110–252) and as amended by section

15

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 ‘‘feefor-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

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1

2

2

relative to the conversion factor for

3

adjustments to payments for items and services

4

2008 and

furnished by providers of services and suppliers

5

under such original medicare fee-

6

for-service

program’’; and

7

(2) in subsection (b)—

8 9

(A) in paragraph (1), by striking ‘‘during

10

fiscal year 2014,’’ and all that follows and in-

11

serting the following: ‘‘during—

12

‘‘(A) fiscal year 2014, $22,290,000,000; and

13 14 15

‘‘(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) N O EFFECT ON PAYMENTS IN SUBSEQUENT YEARS.—In

the case that expenditures from the Fund

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2

1 2

are applied to, or otherwise affect, a payment rate for

3

an item or service under this title for a year, the

4

payment rate for such item or service shall be

5 6

computed for a subsequent year as if such application

7

or effect had never occurred.’’.

8

(c) IMPLEMENTATION FUNDING .—In addition to funds

9 10

otherwise available, out of any funds in the Treasury not otherwise appropriated, there are appropriated to the

11

Secretary of Health and Human Services for the Center for 12 13

Medicare & Medicaid Services Program Management

14

Account, $60,000,000 for each of fiscal years 2009 through

15

2015 and $30,000,000 for each succeeding fiscal year through fiscal year 2019, which shall be available for purposes of carrying out the provisions of (and amendments made by) this part. Amounts appropriated under this subsection for a fiscal year shall be available until expended. SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT IN CENTIVES FOR PROVIDERS NOT RECEIVING OTHER INCENTIVE PAYMENTS.

(a) S TUDY .— (1) IN

GENERAL.—The

Secretary of Health and

Human Services shall conduct a study to determine the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

extent to which and manner in which payment incentives

3

(such as under title XVIII or XIX of the Social Security

4

Act) and other funding for purposes of implementing and

5 6

using certified EHR technology (as defined in section

7

3000 of the Public Health Service Act) should be made

8

available to health care providers who are receiving

9

minimal or no payment incentives or other funding under

10

this Act, under title XVIII or XIX of the Social Security

11

Act, or otherwise, for such purposes. 12

(2) D ETAILS OF STUDY .—Such study shall include

13 14

an examination of—

15

(A) the adoption rates of certified EHR technology by such health care providers; (B) the clinical utility of such technology by such health care providers; (C) whether the services furnished by such health care providers are appropriate for or would benefit from the use of such technology; (D) the extent to which such health care providers work in settings that might otherwise receive an incentive payment or other funding under this Act, title XVIII or XIX of the Social Security

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2

1

Act, or otherwise;

2 3

(E) the potential costs and the potential

4

benefits of making payment incentives and other

5

funding available to such health care providers;

6

and

7

(F) any other issues the Secretary deems to

8 9

be appropriate.

10

(b) R EPORT.—Not later than June 30, 2010, the

11

Secretary shall submit to Congress a report on the findings 12 13 14

and conclusions of the study conducted under subsection (a).

15

PART III—MEDICAID FUNDING SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPER ATION PAYMENTS; IMPLEMENTATION FUND ING.

(a) IN G ENERAL.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

subparagraph:

2 3

‘‘(F)(i) 100 percent of so much of the sums

4

expended during such quarter as are attributable to

5

payments for certified EHR technology (and

6 7

support services including maintenance and

8

training that is for, or is necessary for the

9

adoption and operation of, such technology) by

10

Medicaid providers described in subsection (t)(1);

11

and 12

‘‘(ii) 90 percent of so much of the sums ex-

13 14

pended during such quarter as are attributable to

15

payments for reasonable administrative expenses related to the administration of payments described in clause (i) if the State meets the condition described in subsection (t)(9); plus’’; and (2) by inserting after subsection (s) the following new subsection: ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the payments for certified EHR technology (and support services including maintenance that is for, or is necessary for the operation of, such technology) by Medicaid providers

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described in this paragraph are payments made by the State

3

in accordance with this subsection of the applicable percent

4

(as specified in subparagraph (B)) of the net allowable costs

5 6 7 8 9

of Medicaid providers (as defined in paragraph (2)) for such technology (and support services). ‘‘(B) For purposes of subparagraph (A), the applicable percent is—

10

‘‘(i) in the case of a Medicaid provider described

11

in paragraph (2)(A), 85 percent; and 12

‘‘(ii) in the case of a Medicaid provider described

13 14

in paragraph (2)(B), 100 percent.

15

‘‘(2) In this subsection and subsection (a)(3)(F), the term ‘Medicaid provider’ means— ‘‘(A) an eligible professional (as defined in paragraph (3)(B)) who is not hospital-based and has at least 30 percent of the professional’s patient volume (as estimated in accordance with standards established by the Secretary) attributable to individuals who are receiving medical assistance under this title; and ‘‘(B)(i) a children’s hospital, (ii) an acute-care hospital that is not described in clause (i) and that has at least 10 percent of the hospital’s patient volume (as

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2

1 2

estimated in accordance with standards established by

3

the Secretary) attributable to individuals who are

4

receiving medical assistance under this title, or (iii) a

5 6

Federally-qualified health center or rural health clinic

7

that has at least 30 percent of the center’s or clinic’s

8

patient volume (as estimated in accordance with

9

standards established by the Secretary) attributable to

10

individuals who are receiving medical assistance under

11

this title. 12 13

An eligible professional shall not qualify as a Medicaid

14

provider under this subsection unless the eligible profes-

15

sional has waived, in a manner specified by the Secretary, any right to payment under section 1848(o) with respect to the adoption or support of certified EHR technology by the professional. In applying clauses (ii) and (iii) of subparagraph (B), the standards established by the Secretary for patient volume shall include individuals enrolled in a Medicaid managed care plan (under section 1903(m) or section 1932). ‘‘(3) In this subsection and subsection (a)(3)(F): ‘‘(A) The term ‘certified EHR technology’ means a qualified electronic health record (as defined in 3000(13) of the Public Health Service Act) that is HR 1 PP

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1 2

certified pursuant to section 3001(c)(5) of such Act as

3

meeting standards adopted under section 3004 of such

4

Act that are applicable to the type of record involved

5 6

(as determined by the Secretary, such as an

7

ambulatory electronic health record for office-based

8

physicians or an inpatient hospital electronic health

9

record for hospitals).

10

‘‘(B) The term ‘eligible professional’ means a

11

physician as defined in paragraphs (1) and (2) of section 12 13 14

1861(r), and includes a certified nurse mid- wife and a nurse practitioner.

15

‘‘(C) The term ‘hospital-based’ means, with respect to an eligible professional, a professional (such as a pathologist, anesthesiologist, or emergency physician) who furnishes substantially all of the individ ual’s professional services in a hospital setting (whether inpatient or outpatient) and through the use of the facilities and equipment, including computer equipment, of the hospital. ‘‘(4)(A) The term ‘allowable costs’ means, with respect to certified EHR technology of a Medicaid provider, costs of such technology (and support services including

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2

1 2

maintenance and training that is for, or is necessary for the

3

adoption and operation of, such technology) as determined

4

by the Secretary to be reasonable.

5 6

‘‘(B) The term ‘net allowable costs’ means allowable

7

costs reduced by any payment that is made to the Medicaid

8

provider involved from any other source that is directly

9

attributable to payment for certified EHR technology or

10

services described in subparagraph (A).

11

‘‘(C) In no case shall— 12

‘‘(i) the aggregate allowable costs under this

13 14

subsection (covering one or more years) with respect to

15

a Medicaid provider described in paragraph (2)(A) for purchase and initial implementation of certified EHR technology (and services described in subparagraph (A)) exceed $25,000 or include costs over a period of longer than 5 years; ‘‘(ii) for costs not described in clause (i) relating to the operation, maintenance, or use of certified EHR technology, the annual allowable costs under this subsection with respect to such a Medicaid provider for costs not described in clause (i) for any year exceed $10,000; ‘‘(iii) payment described in paragraph (1) for costs HR 1 PP

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2

1 2

described in clause (ii) be made with respect to such a

3

Medicaid provider over a period of more than 5 years;

4

‘‘(iv) the aggregate allowable costs under this

5 6 7

subsection with respect to such a Medicaid provider for all costs exceed $75,000; or ‘‘(v) the allowable costs, whether for purchase

8 9 10

and initial implementation, maintenance, or otherwise, for a Medicaid provider described in paragraph

11

(2)(B)(iii) exceed such aggregate or annual limitation 12 13

as the Secretary shall establish, based on an amount

14

determined by the Secretary as being adequate to adopt

15

and maintain certified EHR technology, consistent with paragraph (6). ‘‘(5) Payments described in paragraph (1) are not in accordance with this subsection unless the following requirements are met: ‘‘(A) The State provides assurances satisfactory to the Secretary that amounts received under subsection (a)(3)(F) with respect to costs of a Medicaid provider are paid directly to such provider without any deduction or rebate. ‘‘(B) Such Medicaid provider is responsible for

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2

1 2

payment of the costs described in such paragraph that

3

are not provided under this title.

4

‘‘(C) With respect to payments to such Medicaid

5 6

provider for costs other than costs related to the initial

7

adoption of certified EHR technology, the Medicaid

8

provider demonstrates meaningful use of certified

9

EHR technology through a means that is approved by

10

the State and acceptable to the Secretary, and that may

11

be based upon the methodologies applied under section 12 13

1848(o) or 1886(n). ‘‘(D) To the extent specified by the Secretary, the

14 15

certified EHR technology is compatible with State or Federal administrative management systems. ‘‘(6)(A) In no case shall the payments described in paragraph (1), with respect to a hospital, exceed in the aggregate the product of— ‘‘(i) the overall hospital EHR amount for the hospital computed under subparagraph (B); and ‘‘(ii) the Medicaid share for such hospital computed under subparagraph (C). ‘‘(B) For purposes of this paragraph, the overall hospital EHR amount, with respect to a hospital, is the sum of

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2

1 2 3 4

the

applicable

amounts

specified

in

section 1886(n)(2)(A) for such hospital for the first 4 payment years (as estimated by the Secretary) determined

5 6

as if the Medicare share specified in clause (ii) of such

7

section were

8

1. The Secretary shall publish in the Federal Register the

9

overall hospital EHR amount for each hospital eligible for

10

payments under this subsection. In computing amounts under

11

paragraph 1886(n)(2)(C) for payment years after the first 12 13

payment year, the Secretary shall assume that in subsequent

14

payment years discharges increase at the average annual rate

15

of growth of the most recent 3 years for which discharge data are available per year. ‘‘(C) The Medicaid share computed under this subparagraph, for a hospital for a period specified by the Secretary, shall be calculated in the same manner as the Medicare share under section 1886(n)(2)(D) for such a hospital and period, except that there shall be substituted for the numerator under clause (i) of such section the amount that is equal to the number of inpatient-bed-days (as established by the Secretary) which are attributable to individuals who are receiving medical assistance under this

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title and who are not described in section 1886(n)(2)(D)(i).

3

In computing inpatient-bed-days under the previous

4

sentence, the Secretary shall take into account

5 6

inpatient-bed-days attributable to inpatient-bed- days that

7

are paid for individuals enrolled in a Medicaid managed

8

care plan (under section 1903(m) or section 1932).

9 10

‘‘(7) With respect to health care providers other than hospitals, the Secretary shall ensure coordination of the

11

different programs for payment of such health care pro12 13

viders for adoption or use of health information technology

14

(including certified EHR technology), as well as payments

15

for such health care providers provided under this title or title XVIII, to assure no duplication of funding. ‘‘(8) In carrying out paragraph (5)(C), the State and Secretary shall seek, to the maximum extent practicable, to avoid duplicative requirements from Federal and State Governments to demonstrate meaningful use of certified EHR technology under this title and title XVIII. In doing so, the Secretary may deem satisfaction of requirements for such meaningful use for a payment year under title XVIII to be sufficient to qualify as meaningful use under this subsection. The Secretary may also specify the reporting

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2

1 2

periods under this subsection in order to carry out this

3

paragraph.

4

‘‘(9) In order to be provided Federal financial partici-

5 6 7

pation under subsection (a)(3)(F)(ii), a State must dem onstrate to the satisfaction of the Secretary, that the State—

8 9 10

‘‘(A) is using the funds provided for the purposes of administering payments under this subsection,

11

including tracking of meaningful use by Medicaid 12 13

providers; ‘‘(B) is conducting adequate oversight of the

14 15

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

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2

1

under paragraph (1).’’.

2 3 4

(b) IMPLEMENTATION FUNDING .—In addition to funds otherwise available, out of any funds in the Treasury not

5 6

otherwise appropriated, there are appropriated to the

7

Secretary of Health and Human Services for the Center for

8

Medicare & Medicaid Services Program Manage ment

9

Account, $40,000,000 for each of fiscal years 2009 through

10

2015 and $20,000,000 for each succeeding fiscal year

11

through fiscal year 2019, which shall be available for 12 13

purposes of carrying out the provisions of (and the amend-

14

ments made by) this part. Amounts appropriated under this

15

subsection for a fiscal year shall be available until expended. SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM.

(a) IN G ENERAL.—The Secretary shall establish a grant program to enhance the meaningful use of certified electronic health records in nursing facilities. In establishing such program, the Secretary shall use payment incentives for meaningful use of certified EHR technology, similar to those specified in sections 4311, 4312, and 4321, as appropriate. For the purpose of such incentives, the Secretary shall define meaningful use in a manner so as to be consistent with such sections to the extent practicable. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

The Secretary shall award funds to not more than 10 States

3

to carry out activities under this section.

4

(b) A CTIVITIES.—The Secretary shall require a State

5 6

participating in the grant program to— (1) provide payment incentives to nursing facili-

7 8

ties contingent on the demonstration of meaningful use

9

of certified electronic health records;

10

(2) require participating nursing facilities to en-

11

gage in programs to improve the quality and coordi12 13

nation of care through the use of certified EHR

14

technology, including for persons who are repeatedly

15

admitted to acute care hospitals from the nursing facility and persons who receive services across multiple medical and social services providers (including facility and community-based providers); and (3) provide for training of appropriate personnel in the use of certified electronic health records. (c) T ARGETING .—The Secretary shall require a State participating in the grant program to target nursing facilities with a significant percentage (but not less than the average in the State) of the facility’s patient volume (as estimated in accordance with standards established by the Secretary)

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1 2

attributable to individuals who are receiving medical

3

assistance under title XIX of the Social Security Act.

4

(d) P RIORITY .—In making grants under this section,

5 6

the Secretary shall give priority to States with a high pro-

7

portion of total national nursing facility days paid under

8

title XIX of the Social Security Act.

9 10

(e) LIMITATIONS ON U SE OF FUNDS.—A State may not make payments to a nursing facility in excess of 90 percent

11

of the costs of such nursing facility for the adoption and 12 13

operation of certified EHR technology.

14

(f) A PPLICATION .—No grant may be made to a State

15

under this section unless the State submits an application to the Secretary in a form and manner specified by the Secretary.

(g) R EPORT.—Not later than the end of the 3-year period beginning on the date that grants under this section are first awarded, the Secretary shall submit a report to Congress on the activities under this grant program and the effect of this program on quality and coordination of care under title XIX of the Social Security Act. (h) A PPROPRIATION .—Out of any money in the Treasury not otherwise appropriated, there is appropriated

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1 2

to the Secretary of Health and Human Services to carry out

3

this section $600,000,000, to remain available until

4

expended.

5

Subtitle D—Privacy

6 7 8

SEC. 4400. DEFINITIONS.

In this subtitle, except as specified otherwise:

9 10

(1) B REACH .—The term ‘‘breach’’ means the unauthorized acquisition, access, use, or disclosure of

11

protected health information which compromises the 12 13 14

security, privacy, or integrity of protected health information maintained by or on behalf of a person.

15

Such term does not include any unintentional acquisition, access, use, or disclosure of such information by an employee or agent of the covered entity or business associate involved if such acquisition, access, use, or disclosure, respectively, was made in good faith and within the course and scope of the employment or other contractual relationship of such employee or agent, respectively, with the covered entity or business associate and if such information is not further acquired, accessed, used, or disclosed by such employee or agent.

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1

(2) B USINESS ASSOCIATE .—The term ‘‘business

2 3 4

associate’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations.

5

(3) C OVERED ENTITY .—The term ‘‘covered en-

6 7

tity’’ has the meaning given such term in section

8

160.103 of title 45, Code of Federal Regulations.

9 10

(4) D ISCLOSE.—The terms ‘‘disclose’’ and ‘‘disclosure’’ have the meaning given the term ‘‘disclo-

11

sure’’ in section 160.103 of title 45, Code of Federal 12 13

Regulations. (5)

14 15

E LECTRONIC

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) H EALTH 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) H EALTH

CARE PROVIDER .—The term

‘‘health

care provider’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations.

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1 2 3 4

(8) H EALTH PLAN .—The term ‘‘health plan’’ has the meaning given such term in section 1171(5) of the Social

5 6

Security Act. (9) N ATIONAL COORDINATOR.—The term ‘‘Na-

7 8

tional Coordinator’’ means the head of the Office of

9

the National Coordinator for Health Information

10

Technology established under section 3001(a) of the

11

Public Health Service Act, as added by section 4101. 12

(10) P AYMENT.—The term ‘‘payment’’ has the

13 14

meaning given such term in section 164.501 of title 45,

15

Code of Federal Regulations. (11)

P ERSONAL

HEALTH

RECORD .—The

term

‘‘personal health record’’ means an electronic record of individually identifiable health information on an individual that can be drawn from multiple sources and that is managed, shared, and controlled by or for the individual. (12) P ROTECTED HEALTH INFORMATION .—The term ‘‘protected health information’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations.

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1

(13)

2 3

S ECRETARY .—The term ‘‘Secretary’’

means the Secretary of Health and Human Services.

4

(14) S ECURITY .—The term ‘‘security’’ has the

5 6 7

meaning given such term in section 164.304 of title 45, Code of Federal Regulations.

8

(15) S TATE .—The term ‘‘State’’ means each of the

9

several States, the District of Columbia, Puerto Rico, the

10

Virgin Islands, Guam, American Samoa,

and the

11

Northern Mariana Islands. 12

(16) T REATMENT.—The term ‘‘treatment’’ has the

13 14

meaning given such term in section 164.501 of title 45,

15

Code of Federal Regulations. (17) U SE.—The term ‘‘use’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations. (18)

V ENDOR

RECORDS.—The

OF

PERSONAL

HEALTH

term ‘‘vendor of personal health

records’’ means an entity, other than a covered enti ty (as defined in paragraph (3)), that offers or maintains a personal health record. PART I—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

PENALTIES TO BUSINESS ASSOCIATES OF

3

COVERED ENTITIES; ANNUAL GUIDANCE ON

4 5 6

SECURITY PROVISIONS.

(a) A PPLICATION OF S ECURITY P ROVISIONS.—Sections 164.308, 164.310, 164.312, and 164.316 of title 45, Code

7 8

of Federal Regulations, shall apply to a business associate

9

of a covered entity in the same manner that such sections

10

apply to the covered entity. The additional requirements of

11

this title that relate to security and that are made applicable

12

with respect to covered entities shall also be applicable to

13 14 15

such a business associate and shall be incorporated into the business associate agreement between the business associate and the covered entity. (b) A PPLICATION OF C IVIL AND C RIMINAL P EN ALTIES.—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) A NNUAL G UIDANCE.—For the first year beginning after the date of the enactment of this Act and annually HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

thereafter, the Secretary of Health and Human Services

3

shall, in consultation with industry stakeholders, annually

4

issue guidance on the most effective and appropriate

5 6

technical safeguards for use in carrying out the sections

7

referred to in subsection (a) and the security standards in

8

subpart C of part 164 of title 45, Code of Federal

9

Regulations, including the use of standards developed

10

under section 3002(b)(2)(B)(vi) of the Public Health

11

Service Act, as added by section 4101, as such provisions 12 13 14 15

are in effect as of the date before the enactment of this Act. SEC. 4402. NOTIFICATION IN THE CASE OF BREACH.

(a) IN G ENERAL.—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) N OTIFICATION OF C OVERED E NTITY BY B USINESS A SSOCIATE .—A business associate of a covered entity that

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1 2

accesses, maintains, retains, modifies, records, stores,

3

destroys, or otherwise holds, uses, or discloses unsecured

4

protected health information shall, following the discovery

5 6

of a breach of such information, notify the covered entity of

7

such breach. Such notice shall include the identification of

8

each individual whose unsecured protected health

9

information has been, or is reasonably believed by the

10

business associate to have been, accessed, acquired, or

11

disclosed during such breach. 12 13

(c) B REACHES T REATED AS D ISCOVERED .—For purposes

14

of this section, a breach shall be treated as discovered by a

15

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) T IMELINESS OF N OTIFICATION .— (1) I N

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

covered entity involved (or business associate involved

3

in the case of a notification required under subsection

4

(b)).

5

(2) B URDEN OF PROOF.—The covered entity in-

6 7

volved (or business associate involved in the case of a

8

notification required under subsection (b)), shall have

9

the burden of demonstrating that all notifications were

10

made as required under this part, including evidence

11

demonstrating the necessity of any delay. 12 13

(e) M ETHODS OF N OTICE.— (1)

14 15

INDIVIDUAL

NOTICE .—Notice

re q uire d

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, HR 1 PP

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1 2

or out-of-date contact information (in cluding a

3

phone number, email address, or any other form

4

of appropriate communication) that precludes

5

direct written (or, if specified by the individual

6 7

under subparagraph (A), electronic) notification

8

to the individual, a substitute form of notice shall

9

be provided, including, in the case that there are

10

10 or more individuals for which there is

11

insufficient or out-of-date contact information, a 12

conspicuous posting for a period determined by

13 14

the Secretary on the home page of the Web site of

15

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

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1 2

information, the covered entity, in addition to

3

notice provided under subparagraph (A), may

4

provide information to individuals by telephone or

5

other means, as appropriate.

6

(2) M EDIA NOTICE.—Notice shall be provided to

7 8

prominent media outlets serving a State or jurisdiction,

9

following the discovery of a breach described in

10

subsection (a), if the unsecured protected health

11

information of more than 500 residents of such State 12 13

or jurisdiction is, or is reasonably believed to have

14

been, accessed, acquired, or disclosed during such

15

breach. (3) N OTICE TO SECRETARY .—Notice shall be provided to the Secretary by covered entities of unsecured protected health information that has been acquired or disclosed in a breach. If the breach was with respect to 500 or more individuals than such notice must be provided immediately. If the breach was with respect to less than 500 individuals, the covered entity involved may maintain a log of any such breach occurring and annually submit such a log to the Secretary documenting such breaches occurring

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1

2

2

during the year involved.

3 4

(4) P OSTING

ON

HHS

PUBLIC

WEBSITE .—The

Secretary shall make available to the public on the

5 6 7

Internet website of the Department of Health and Human Services a list that identifies each covered

8

entity involved in a breach described in subsection

9 10

(a) in which the unsecured protected health information

11

of more than 500 individuals is acquired or disclosed.

12

(f) C ONTENT

OF

N OTIFICATION .—Regardless of the

13 14 15

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 HR 1 PP

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breach.

3 4

(4) A brief description of what the covered entity involved is doing to investigate the breach, to mitigate

5 6

losses, and to protect against any further breaches.

7

(5) Contact procedures for individuals to ask

8

questions or learn additional information, which shall

9

include a toll-free telephone number, an e-mail

10

address, Web site, or postal address.

11

(g) D ELAY OF N OTIFICATION A UTHORIZED FOR LAW 12 13

E NFORCEMENT P URPOSES.—If a law enforcement official

14

determines that a notification, notice, or posting required

15

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) U NSECURED P ROTECTED H EALTH INFORMATION .— (1) D EFINITION .— (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 HR 1 PP

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through the use of a technology or methodology

3

specified by the Secretary in the guidance issued

4

under paragraph (2).

5

(B) E XCEPTION IN CASE TIMELY GUIDANCE NOT

6

ISSUED .—In

7

the case that the Secretary does not

8

issue guidance under paragraph

9

(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) G UIDANCE.—For purposes of paragraph (1)

10 11 12 13 14 15

and section 407(f)(3), not later than the date that is 60 days after the date of the enactment of this Act, the Secretary shall, after consultation with stakeholders, issue (and annually update) guidance specifying the technologies and methodologies that render protected health

information unusable, unreadable,

or indecipherable to unauthorized individuals, including use of standards developed under section 3002(b)(2)(B)(vi) of the Public Health Service Act, as added by section 4101. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(i) R EPORT TO C ONGRESS ON B REACHES.—

2 3 4

(1) IN GENERAL.—Not later than 12 months after the date of the enactment of this Act and annually

5

thereafter, the Secretary shall prepare and submit to 6 7

the Committee on Finance and the Com mittee on

8

Health, Education, Labor, and Pensions of the Senate

9

and the Committee on Ways and Means and the

10 11

Committee on Energy and Commerce of the House of Representatives a report containing the information

12 13

described in paragraph (2) regarding breaches for

14

which notice was provided to the Secretary under

15

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) R EGULATIONS; E FFECTIVE D ATE .—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 HR 1 PP

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title. The provisions of this section shall apply to breaches

3

that are discovered on or after the date that is 30 days after

4

the date of publication of such interim final regulations.

5 SEC. 4403. EDUCATION ON HEALTH INFORMATION PRI

6 VACY.

7 8 9 10 11

(a) R EGIONAL O FFICE P RIVACY A DVISORS.—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

12

offer guidance and education to covered entities, business 13 14 15

associates, and individuals on their rights and responsibilities related to Federal privacy and security requirements for protected health information. (b) E DUCATION INITIATIVE ON U SES OF H EALTH IN FORMATION .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

be conducted in a variety of languages and present

3

information in a clear and understandable manner.

4

SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND

5

PENALTIES TO BUSINESS ASSOCIATES OF

6 COVERED ENTITIES.

7 8 9

(a) A PPLICATION OF C ONTRACT R EQUIREMENTS.— In the case of a business associate of a covered entity that

10

obtains or creates protected health information pursuant to

11

a written contract (or other written arrangement) described

12

in section 164.502(e)(2) of title 45, Code of Federal

13 14 15

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) A PPLICATION OF K NOWLEDGE E LEMENTS A SSO CIATED

W ITH C ONTRACTS.—Section 164.504(e)(1)(ii) of

title 45, Code of Federal Regulations, shall apply to a HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

business associate described in subsection (a), with respect

3

to compliance with such subsection, in the same manner

4

that such section applies to a covered entity, with respect to

5 6

compliance with the standards in sections 164.502(e) and

7

164.504(e) of such title, except that in applying such

8

section 164.504(e)(1)(ii) each reference to the business as-

9

sociate, with respect to a contract, shall be treated as a

10

reference to the covered entity involved in such contract.

11

(c) A PPLICATION OF C IVIL AND C RIMINAL P EN 12 13

ALTIES.—In

the case of a business associate that violates

14

any provision of subsection (a) or (b), the provisions of

15

sections 1176 and 1177 of the Social Security Act (42 U.S.C. 1320d–5, 1320d–6) shall apply to the business associate with respect to such violation in the same manner as such provisions apply to a person who violates a provision of part C of title XI of such Act. SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH INFORMATION; ACCOUNT ING OF CERTAIN PROTECTED HEALTH IN FORMATION DISCLOSURES; ACCESS TO CER TAIN INFORMATION IN ELECTRONIC FOR MAT.

(a) R EQUESTED R ESTRICTIONS ON C ERTAIN D ISCLOSURES HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

OF H EALTH INFORMATION .—In

3

requests under paragraph (a)(1)(i)(A) of section 164.522 of

4

the case that an individual

title 45, Code of Federal Regulations, that a covered entity

5 6

restrict the disclosure of the protected health information of

7

the individual, notwithstanding paragraph (a)(1)(ii) of such

8

section, the covered entity must comply with the requested

9

restriction if—

10

(1) except as otherwise required by law, the dis-

11 12

closure is to a health plan for purposes of carrying out

13

payment or health care operations (and is not for

14

purposes of carrying out treatment); and

15

(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) D ISCLOSURES R EQUIRED T O B E LIMITED

TO THE

LIMITED D ATA S ET OR THE M INIMUM N ECESSARY .— (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

information described in such section, only if the

3

covered entity limits such protected health

4

information, to the extent practicable, to the

5

limited data set (as defined in section

6 7

164.514(e)(2) of such title) or, if needed by such

8

entity, to the minimum necessary to accomplish

9

the intended purpose of such use, disclosure, or

10

request, respectively.

11

(B)

12 13

G UIDANCE.—Not later than 18

months after the date of the enactment of this

14

section, the Secretary shall issue guidance on

15

what constitutes ‘‘minimum necessary’’ for purposes of subpart E of part 164 of title 45, Code of Federal Regulation. In issuing such guidance the Secretary shall take into consideration the guidance under section 4424(c). (C) S UNSET.—Subparagraph (A) shall not apply on and after the effective date on which the Secretary issues the guidance under subparagraph (B). (2)

D ETERMINATION

CESSARY .—For

OF

MINIMUM

NE

purposes of paragraph (1), in the case

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1 2

of the disclosure of protected health information, the

3

covered entity or business associate disclosing such

4

information shall determine what constitutes the

5 6 7

minimum necessary to accomplish the intended purpose of such disclosure.

8

(3) A PPLICATION OF EXCEPTIONS.—The exceptions

9

described in section 164.502(b)(2) of title 45, Code of

10

Federal Regulations, shall apply to the requirement

11

under paragraph (1) as of the effective date described 12 13

in section 4423 in the same manner that such

14

exceptions apply to section 164.502(b)(1) of such title

15

before such date. (4) R ULE

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) A CCOUNTING

OF

C ERTAIN P ROTECTED H EALTH

INFORMATION D ISCLOSURES R EQUIRED IF C OVERED E NTITY U SES E LECTRONIC H EALTH R ECORD .— (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

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2

1 2

record with respect to protected health information—

3

(A)

4

the

exception

under paragraph

(a)(1)(i) of such section shall not apply to dis-

5

closures through an electronic health record made

6

by such entity of such information; and

7

(B) an individual shall have a right to receive

8 9

an accounting of disclosures described in such

10

paragraph of such information made by such

11

covered entity during only the three years prior to 12

the date on which the accounting is requested.

13

(2) R EGULATIONS.—The Secretary shall pro-

14 15

mulgate regulations on what information shall be collected about each disclosure referred to in paragraph (1)(A) not later than 18 months after the date on which the Secretary adopts standards on accounting for disclosure described in the section 3002(b)(2)(B)(iv) of the Public Health Service Act, as added by section 4101. Such regulations shall only require such information to be collected through an electronic health record in a manner that takes into account the interests of individuals in learning the circumstances under which their protected health information is being

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2

1 2

disclosed and takes into account the administrative

3

burden of accounting for such disclosures.

4

(3) C ONSTRUCTION .—Nothing in this subsection

5 6

shall be construed as requiring a covered entity to

7

account for disclosures of protected health information

8

that are not made by such covered entity or by a

9

business associate acting on behalf of the covered

10

entity.

11

(4) E FFECTIVE DATE .— 12

(A) C URRENT USERS OF ELECTRONIC

13 14

RECORDS.—In

the case of a covered entity insofar

15

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) O THERS.—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:

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2

1

(i) January 1, 2011; or

2 3

(ii) the date that it acquires an electronic

4

health record.

5

(d) R EVIEW OF H EALTH C ARE O PERATIONS.—Not later 6 7

than 18 months after the date of the enactment of this title,

8

the Secretary shall promulgate regulations to eliminate from

9

the definition of health care operations under section

10 11

164.501 of title 45, Code of Federal Regulations, those activities that can reasonably and efficiently be conducted

12 13

through the use of information that is de- identified (in

14

accordance with the requirements of section 164.514(b) of

15

such title) or that should require a valid authorization for use or disclosure. In promulgating such regulations, the Secretary may choose to narrow or clarify activities that the Secretary chooses to retain in the definition of health care operations and the Secretary shall take into account the report under section 424(d). In such regulations the Secretary shall specify the date on which such regulations shall apply to disclosures made by a covered entity, but in no case would such date be sooner than the date that is 24 months after the date of the enactment of this section. (e) P ROHIBITION ON S ALE OF E LECTRONIC H EALTH R ECORDS OR P ROTECTED H EALTH INFORMATION .— HR 1 PP

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2

1

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

2 3 4

(2), a covered entity or business associate shall not directly or indirectly receive remuneration in exchange

5 6

for any protected health information of an individual

7

unless the covered entity obtained from the individual,

8

in accordance with section 164.508 of title 45, Code

9

of Federal Regulations, a valid authorization that

10

includes, in accordance with such section, a

11

specification of whether the protected health 12 13

information can be further exchanged for remuneration

14

by the entity receiving protected health information of

15

that individual. (2) E XCEPTIONS.—Paragraph (1) shall not apply in the following cases: (A) The purpose of the exchange is for research or public health activities (as described in sections 164.501, 164.512(i), and 164.512(b) of title 45, Code of Federal Regulations) and the price charged reflects the costs of preparation and transmittal of the data for such purpose. (B) The purpose of the exchange is for the treatment of the individual and the price charges

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2

1 2

reflects not more than the costs of preparation and

3

transmittal of the data for such purpose.

4

(C) The purpose of the exchange is the

5

health care operation specifically described in

6 7

subparagraph (iv) of paragraph (6) of the defi-

8

nition of health care operations in section 164.501

9

of title 45, Code of Federal Regulations.

10

(D) The purpose of the exchange is for re-

11

muneration that is provided by a covered entity to 12

a business associate for activities involving the

13 14

exchange of protected health information that the

15

business associate undertakes on behalf of and at the specific request of the covered entity pursuant to a business associate agreement. (E) The purpose of the exchange is to provide an individual with a copy of the individual’s protected health information pursuant to section 164.524 of title 45, Code of Federal Regulations. (F) The purpose of the exchange is otherwise determined by the Secretary in regulations to be similarly necessary and appropriate as the exceptions provided in subparagraphs (A) through

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2

1 2

(E).

3

(3) R EGULATIONS.—The Secretary shall pro-

4

mulgate regulations to carry out paragraph (this

5 6

subsection, including exceptions described in para-

7

graph (2), not later than 18 months after the date of the

8

enactment of this title.

9 10

(4) E FFECTIVE DATE .—Paragraph (1) shall apply to exchanges occurring on or after the date that is 6 months

11

after the date of the promulgation of final regulations 12 13 14 15

implementing this subsection. (f) A CCESS TO C ERTAIN INFORMATION IN E LECTRONIC FORMAT.—In applying section 164.524 of title 45, Code of Federal Regulations, in the case that a covered entity uses or maintains an electronic health record with respect to protected health information of an individual— (1) the individual shall have a right to obtain from such covered entity a copy of such information in an electronic format; and (2) notwithstanding paragraph (c)(4) of such section, any fee that the covered entity may impose for providing such individual with a copy of such information (or a summary or explanation of such in-

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2

1 2

formation) if such copy (or summary or explanation) is

3

in an electronic form shall not be greater than the

4

entity’s labor costs in responding to the request for the

5 6

copy (or summary or explanation).

7

(g) C LARIFICATION .—Nothing in this subtitle shall

8

constitute a waiver of any privilege otherwise applicable to

9

an individual with respect to the protected health infor-

10

mation of such individual.

11 SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART

12 OF HEALTH CARE OPERATIONS.

13 14

(a) M ARKETING .— (1) IN GENERAL.—A communication by a covered

15

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 commu nication 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)

P AYMENT

FOR

CERTAIN

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COMMUNI

2

1 2

CATIONS.—A

3

not receive direct or indirect payment in exchange for

4

covered entity or business associate may

making any communication described in subparagraph

5 6

(i), (ii), or (iii) of paragraph (1) of the definition of

7

marketing in section 164.501 of title 45, Code of

8

Federal Regulations, except—

9

(A) a business associate of a covered entity

10

may receive payment from the covered entity for

11

making any such communication on behalf of the 12

covered entity that is consistent with the written

13 14

contract (or other written arrangement) described

15

in section 164.502(e)(2) of such title between such business associate and covered entity; or (B) a covered entity may receive payment in exchange for making any such communication if the entity obtains from the recipient of the communication, in accordance with section 164.508 of title 45, Code of Federal Regulations, a valid authorization (as described in paragraph (b) of such section) with respect to such communication. (b) FUNDRAISING .—Fundraising for the benefit of a

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1

2

2

covered entity shall not be considered a health care oper-

3

ation for purposes of section 164.501 of title 45, Code of

4

Federal Regulations.

5 6

(c) E FFECTIVE D ATE .—This section shall apply to

7

contracting occurring on or after the effective date specified

8

under section 4423.

9

SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIRE

10

MENT FOR VENDORS OF PERSONAL HEALTH

11

RECORDS AND OTHER NON-HIPAA COVERED

12

ENTITIES.

13 14 15

(a) IN G ENERAL.—In accordance with subsection (c), each vendor of personal health records, following the discovery of a breach of security of unsecured PHR identifiable health information that is in a personal health record maintained or offered by such vendor, and each entity described in clause (ii) or (iii) of section 4424(b)(1)(A), following the discovery of a breach of security of such information that is obtained through a product or service provided by such entity, shall— (1) notify each individual who is a citizen or resident of the United States whose unsecured PHR identifiable health information was acquired by an unauthorized person as a result of such a breach of HR 1 PP

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2

1 2

security; and

3 4

(2) notify the Federal Trade Commission. (b) N OTIFICATION BY T HIRD P ARTY S ERVICE P RO -

5 VIDERS.—A

third party service provider that provides

6 7

services to a vendor of personal health records or to an

8

entity described in clause (ii) or (iii) of section

9

4424(b)(1)(A) in connection with the offering or mainte-

10 11

nance of a personal health record or a related product or service and that accesses, maintains, retains, modifies,

12 13

records, stores, destroys, or otherwise holds, uses, or dis-

14

closes unsecured PHR identifiable health information in

15

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) A PPLICATION OF R EQUIREMENTS FOR T IMELINESS, M ETHOD ,

AND

C ONTENT OF N OTIFICATIONS.— Subsections

(c), (d), (e), and (f) of section 402 shall apply to a notification required under subsection (a) and a vendor of personal health records, an entity described in subsection (a) HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

and a third party service provider described in subsection

3

(b), with respect to a breach of security under subsection

4

(a) of unsecured PHR identifiable health information in

5 6 7

such records maintained or offered by such vendor, in a manner specified by the Federal Trade Commission.

8

(d) N OTIFICATION OF THE S ECRETARY .—Upon receipt of

9

a notification of a breach of security under subsection (a)(2),

10

the Federal Trade Commission shall notify the Secretary of

11

such breach. 12 13

(e) E NFORCEMENT.—A violation of subsection (a) or

14

(b) shall be treated as an unfair and deceptive act or practice

15

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) D EFINITIONS.—For purposes of this section: (1) B REACH 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section 1171(6) of the Social Se

3

curity Act (42 U.S.C. 1320d(6)), and includes, with

4

respect to an individual, information—

5

(A) that is provided by or on behalf of the

6

individual; and

7 8

(B) that identifies the individual or with

9

respect to which there is a reasonable basis to

10

believe that the information can be used to identify

11

the individual. 12

(3) U NSECURED PHR IDENTIFIABLE HEALTH

13 14

INFORMATION .—

15

(A) IN GENERAL.—Subject to subparagraph (B), the term ‘‘unsecured PHR identifiable health information’’ means PHR identifiable health information that is not protected through the use of a technology or methodology specified by the Secretary in the guidance issued under section 4402(h)(2). (B) E XCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED .—In

the case that the Secretary does not

issue guidance under section 4402(h)(2) by the date specified in such section, for purposes of this

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2

1 2

section, the term ‘‘unsecured PHR identifiable

3

health information’’ shall mean PHR identifiable

4

health information that is not secured by a

5

technology standard that renders protected health

6 7

information unusable, unreadable, or

8

indecipherable to unauthorized individuals and

9

that is developed or endorsed by a standards

10

developing organization that is accredited by the

11

American National Standards Institute. 12

(g) R EGULATIONS; E FFECTIVE D ATE ; S UNSET.—

13

(1)

14 15

R EGULATIONS;

DATE .—To

EFFECTIVE

carry out this section, the Secretary of

Health and Human Services shall promulgate interim final regulations by not later than the date that is 180 days after the date of the enactment of this section. The provisions of this section shall apply to breaches of security that are discovered on or after the date that is 30 days after the date of publication of such interim final regulations. (2) S UNSET.—The provisions of this section shall not apply to breaches of security occurring on or after the earlier of the following the dates: (A) The date on which a standard relating to HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

requirements for entities that are not covered

3

entities that includes requirements relating to breach

4

notification has been promulgated by the Secretary.

5

(B) The date on which a standard relating to

6 7

requirements for entities that are not covered

8

entities that includes requirements relating to

9

breach notification has been promulgated by the

10

Federal Trade Commission and has taken effect.

11 SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED

12 FOR CERTAIN ENTITIES.

13 14 15

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, Eprescribing 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 HR 1 PP

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1

2

2

section 164.308(b) of such title, with such entity and shall

3

be treated as a business associate of the covered entity for

4

purposes of the provisions of this subtitle and subparts C

5 6

and E of part 164 of title 45, Code of Federal Regula tions,

7

as such provisions are in effect as of the date of enactment

8

of this title.

9

SEC. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL

10 11

DISCLOSURES CRIMINAL PENALTIES.

Section 1177(a) of the Social Security Act (42 U.S.C.

12

1320d–6(a)) is amended by adding at the end the following 13 14 15

new sentence: ‘‘For purposes of the previous sentence, a person (including an employee or other individual) shall be considered to have obtained or disclosed individually identifiable health information in violation of this part if the information is maintained by a covered entity (as defined in the HIPAA privacy regulation described in section 1180(b)(3)) and the individual obtained or disclosed such information without authorization.’’. SEC. 4410. IMPROVED ENFORCEMENT.

(a) IN G ENERAL.—Section 1176 of the Social Security Act (42 U.S.C. 1320d–5) is amended— (1) in subsection (b)(1), by striking ‘‘the act constitutes an offense punishable under section 1177’’ HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and inserting ‘‘a penalty has been imposed under section

3

1177 with respect to such act’’; and

4

(2) by adding at the end the following new sub-

5 6 7

section: ‘‘(c) N ONCOMPLIANCE D UE TO W ILLFUL N EGLECT.— ‘‘(1) IN

8 9 10

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

11

subsection (a)(1). 12

‘‘(2) R EQUIRED INVESTIGATION .—For purposes of

13 14

paragraph (1), the Secretary shall formally investigate

15

any complaint of a violation of a provision of this part if a preliminary investigation of the facts of the complaint indicate such a possible violation due to willful neglect.’’. (b) E FFECTIVE D ATE ; R EGULATIONS.— (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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

(c) D ISTRIBUTION OF C ERTAIN C IVIL M ONETARY

3

P ENALTIES C OLLECTED .—

4

(1) IN

GENERAL.—Subject

to the regulation

5 6

promulgated pursuant to paragraph (3), any civil

7

monetary penalty or monetary settlement collected with

8

respect to an offense punishable under this sub

9

title or section 1176 of the Social Security Act (42

10

U.S.C. 1320d–5) insofar as such section relates to

11

privacy or security shall be transferred to the Office of 12 13

Civil Rights of the Department of Health and Human

14

Services to be used for purposes of enforcing the

15

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

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2

1 2

penalty or monetary settlement collected with respect

3

to such offense.

4

(3) E STABLISHMENT OF METHODOLOGY TO

5 DISTRIBUTE PERCENTAGE OF CMPS COLLECTED TO HARMED

6 INDIVIDUALS.—Not

later than 3 years after the date of

7 8 9 10 11 12

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

13 14 15

receive a percentage of any civil monetary penalty or monetary settlement collected with respect to such offense. (4)

A PPLIC ATIO N

OF

M E TH O D O LO G Y .— 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) T IERED INCREASE IN A MOUNT OF C IVIL M ONETARY P ENALTIES.— (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of not more than’’ and all that follows and inserting the

3

following: ‘‘who violates a provision of this part—

4

‘‘(A) in the case of a violation of such pro-

5

vision in which it is established that the person

6 7

did not know (and by exercising reasonable dili-

8

gence would not have known) that such person

9

violated such provision, a penalty for each such

10

violation of an amount that is at least the amount

11

described in paragraph (3)(A) but not to exceed 12

the amount described in paragraph (3)(D);

13

‘‘(B) in the case of a violation of such pro-

14 15

vision 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

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2

1 2

an amount that is at least the amount

3

described in paragraph (3)(C) but not to

4

exceed the amount described in paragraph

5

(3)(D); and

6 7

‘‘(ii) if the violation is not corrected as

8

described in such subsection, a penalty in an

9

amount that is at least the amount described in

10

paragraph (3)(D).

11

In determining the amount of a penalty under this 12

section for a violation, the Secretary shall base such

13 14

determination on the nature and ex

15

tent of the violation and the nature and extent of the harm resulting from such violation.’’. (2) T IERS 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) T IERS 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

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2

1 2

the total amount imposed on the person for all

3

such violations of an identical requirement or

4

prohibition during a calendar year may not exceed

5

$25,000;

6

‘‘(B) the amount described in this subpara-

7 8

graph is $1,000 for each such violation, except

9

that the total amount imposed on the person for

10

all such violations of an identical requirement or

11

prohibition during a calendar year may not exceed 12

$100,000;

13 14

‘‘(C) the amount described in this subpara-

15

graph is $10,000 for each such violation, except that the total amount imposed on the person for all such violations of an identical require ment 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.’’.

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2

1

(3)

2 3 4

C ONFORMING

AMENDMENTS.—Section

1176(b) of such Act (42 U.S.C. 1320d–5(b)) is amended—

5

(A) by striking paragraph (2) and redesig-

6

nating paragraphs (3) and (4) as paragraphs

7

(2) and (3), respectively; and

8 9

(B) in paragraph (2), as so redesignated—

10

(i) in subparagraph (A), by striking ‘‘in

11

subparagraph (B), a penalty may not be

12

imposed under subsection (a) if’’ and all that

13 14

follows through ‘‘the failure to comply is

15

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) E FFECTIVE

DATE .—The

amendments made by

this subsection shall apply to violations occurring after the date of the enactment of this title. (e) E NFORCEMENT T HROUGH S TATE A TTORNEYS HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

G ENERAL.—

3 4

(1) IN

GENERAL.—Section

1176 of the Social

Security Act (42 U.S.C. 1320d–5) is amended by adding

5 6 7

at the end the following new subsection: ‘‘(c) E NFORCEMENT BY S TATE A TTORNEYS G ENERAL.—

8

‘‘(1) C IVIL ACTION .—Except as provided in

9

subsection (b), in any case in which the attorney

10

general of a State has reason to believe that an interest

11

of one or more of the residents of that State has been 12 13

or is threatened or adversely affected by any person

14

who violates a provision of this part, the attorney

15

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) S TATUTORY DAMAGES.— ‘‘(A) IN GENERAL.—For purposes of para-

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2

1 2

graph (1)(B), the amount determined under this

3

paragraph is the amount calculated by multiplying

4

the number of violations by up to $100. For

5

purposes of the preceding sentence, in the case of

6 7

a continuing violation, the number of violations

8

shall be determined consistent with the HIPAA

9

privacy regulations (as defined in section

10

1180(b)(3)) for violations of subsection (a).

11

‘‘(B) LIMITATION .—The total amount of 12

damages imposed on the person for all violations

13 14

of an identical requirement or prohibition during a

15

calendar year may not exceed $25,000. ‘‘(C) R EDUCTION 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) A TTORNEY 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.

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1 2

‘‘(4) N OTICE TO SECRETARY .—The State shall

3

serve prior written notice of any action under paragraph

4

(1) upon the Secretary and provide the Secretary with a

5 6

copy of its complaint, except in any case in which such

7

prior notice is not feasible, in which case the State

8

shall serve such notice immediately upon instituting

9

such action. The Secretary shall have the right—

10

‘‘(A) to intervene in the action;

11

‘‘(B) upon so intervening, to be heard on all

12

matters arising therein; and

13

‘‘(C) to file petitions for appeal.

14

‘‘(5) C ONSTRUCTION .—For purposes of bringing

15

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) V ENUE; SERVICE OF PROCESS.— ‘‘(A) V ENUE.—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

‘‘(B) S ERVICE OF PROCESS.—In an action brought

3

under paragraph (1), process may be served in

4

any district in which the defendant— ‘‘(i) is an

5

inhabitant; or ‘‘(ii) maintains a physical place of

6 7

business.

8

‘‘(7) LIMITATION ON STATE ACTION WHILE FEDERAL

9 10

ACTION IS PENDING .—If

the Secretary has instituted an

action against a person under subsection (a) with

11

respect to a specific violation of this part, no State 12 13

attorney general may bring an action under this

14

subsection against the person with respect to such

15

violation during the pendency of that action. ‘‘(8) A PPLICATION 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) C ONFORMING 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

inserting ‘‘No penalty may be imposed under

3

subsection (a) and no damages obtained under

4

subsection (c)’’;

5

(B) in paragraph (2)(A)—

6

(i) in the matter before clause (i), by

7 8

striking ‘‘a penalty may not be imposed under

9

subsection (a)’’ and inserting ‘‘no

10

penalty

may be imposed under subsection

11

(a) and no damages obtained under sub-

12

section (c)’’; and

13

(ii) in clause (ii), by inserting ‘‘or

14 15

damages’’ after ‘‘the penalty’’; (C) in paragraph (2)(B)(i), by striking ‘‘The period’’ and inserting ‘‘With respect to

the

imposition of a penalty by the Secretary under subsection (a), the period’’; and (D) in paragraph (3), by inserting ‘‘and any damages under subsection (c)’’ after ‘‘any penalty under subsection (a)’’. (3) E FFECTIVE

DATE .—The

amendments made by

this subsection shall apply to violations occurring after the date of the enactment of this Act. (f) A LLOWING C ONTINUED U SE OF C ORRECTIVE A CHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

TION .—Such

3

end the following new subsection:

4

section is further amended by adding at the

‘‘(d) A LLOWING C ONTINUED U SE OF C ORRECTIVE

5 6

A CTION .—Nothing in this section shall be construed as

7

preventing the Office of Civil Rights of the Department of

8

Health and Human Services from continuing, in its dis-

9

cretion, to use corrective action without a penalty in cases

10

where the person did not know (and by exercising reason-

11

able diligence would not have known) of the violation in12 13 14 15

volved.’’. SEC. 4411. AUDITS.

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

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1 2

SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE MEDICATION ERRORS AND IMPROVE PA

3 4 5 6

TIENT SAFETY.

Nothing under this subtitle shall prevent a pharmacist from communicating with patients in order to reduce

7 8 9

medication errors and improve patient safety provided there is no remuneration other than for the treatment of the

10

individual and payment for such treatment of the individual

11

as defined in 45 CFR 164.501. The Secretary may by

12

regulation authorize a pharmacy to receive remuneration

13 14 15

that does not exceed their reasonable out-of-pocket costs for such communications if the Secretary determines that allowing this remuneration improves patient care and protects protected health information. PART II—RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE DATE; REPORTS

SEC. 4421. RELATIONSHIP TO OTHER LAWS.

(a) A PPLICATION

OF

HIPAA S TATE P REEMPTION .—

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

or implementation specification adopted or established under

3

sections 1172 through 1174 of such Act.

4

(b) H EALTH INSURANCE P ORTABILITY AND A C-

5 COUNTABILITY

6

A CT.—The standards governing the privacy

7

and security of individually identifiable health information

8

promulgated by the Secretary under sections 262(a) and

9

264 of the Health Insurance Portability and Accountability

10

Act of 1996 shall remain in effect to the extent that they are

11

consistent with this subtitle. The Secretary shall by rule 12 13 14 15

amend such Federal regulations as required to make such regulations consistent with this subtitle. SEC. 4422. REGULATORY REFERENCES.

Each reference in this subtitle to a provision of the Code of Federal Regulations refers to such provision as in effect on the date of the enactment of this title (or to the most recent update of such provision). SEC. 4423. EFFECTIVE DATE.

Except as otherwise specifically provided, the provisions of part I shall take effect on the date that is 12 months after the date of the enactment of this title. SEC. 4424. STUDIES, REPORTS, GUIDANCE.

(a) R EPORT ON C OMPLIANCE.— (1) IN GENERAL.—For the first year beginning HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

after the date of the enactment of this Act and an nually

3

thereafter, the Secretary shall prepare and submit to

4

the Committee on Health, Education, Labor, and

5 6

Pensions of the Senate and the Committee on Ways

7

and Means and the Committee on Energy and

8

Commerce of the House of Representatives a report

9

concerning complaints of alleged violations of law,

10

including the provisions of this subtitle as well as the

11

provisions of subparts C and E of part 164 of title 45, 12 13

Code of Federal Regulations, (as such provisions are

14

in effect as of the date of enactment of this Act)

15

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 HR 1 PP

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1

types of such technical assistance provided;

2 3

(C) the number of such complaints that have

4 5

resulted in the imposition of civil monetary

6

penalties or have been resolved through monetary

7

settlements, including the nature of the complaints

8

involved and the amount paid in each penalty or

9

settlement;

10

(D) the number of compliance reviews con-

11

ducted and the outcome of each such review;

12 13

(E) the number of subpoenas or inquiries

14

issued;

15

(F) the Secretary’s plan for improving compliance with and enforcement of such provisions for the following year; and (G) the number of audits performed and a summary of audit findings pursuant to section 4411.

(2) A VAILABILITY

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) S TUDY AND R EPORT ON A PPLICATION OF P RIVACY HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

S ECURITY R EQUIREMENTS TO N ON -HIPAA C OVERED

2

AND

3

E NTITIES.—

4

(1) S TUDY .—Not later than one year after the

5 6

date of the enactment of this title, the Secretary, in

7

consultation with the Federal Trade Commission, shall

8

conduct a study, and submit a report under paragraph

9

(2), on privacy and security requirements for entities

10

that are not covered entities or business associates as

11

of the date of the enactment of this title, including— 12

(A) requirements relating to security, privacy,

13 14

and notification in the case of a breach of security

15

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 HR 1 PP

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1

2

2

health records;

3

(iii) entities that are not covered entities

4

and that offer products or services through

5

the websites of covered entities that offer

6

individuals personal health records;

7

(iv) entities that are not covered entities

8 9

and that access information in a personal

10

health record or send information to a

11

personal health record; and 12

(v) third party service providers used by

13 14

a vendor or entity described in clause (i), (ii),

15

(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) R EPORT.—The Secretary shall submit to the Committee on Finance, the Committee on Health,

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1 2

Education, Labor, and Pensions, and the Committee on

3

Commerce of the Senate and the Committee on Ways

4

and Means and the Committee on Energy and

5 6

Commerce of the House of Representatives a report on

7

the findings of the study under paragraph (1) and shall

8

include in such report recommendations on the privacy

9

and security requirements described in such paragraph.

10

(c) G UIDANCE ON IMPLEMENTATION S PECIFICATION T O

11

D E -IDENTIFY P ROTECTED H EALTH INFORMATION .— Not later 12 13

than 12 months after the date of the enactment of this title,

14

the Secretary shall, in consultation with stakeholders, issue

15

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 R EPORT ON T REATMENT D ISCLOSURES.— 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

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1

2

2

related to the disclosure among health care providers of

3

protected health information of an individual for purposes

4

of treatment of such individual. Such report shall include an

5 6

examination of the best practices implemented by States and

7

by other entities, such as health information exchanges and

8

regional health information organizations, an examination of

9

the extent to which such best practices are successful with

10

respect to the quality of the resulting health care provided

11

to the individual and with respect to the ability of the health 12 13

care provider to manage such best practices, and an

14

examination of the use of electronic informed consent for

15

disclosing protected health information for treatment, payment, and health care operations.

Subtitle E—Miscellaneous Medicare Provisions SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULA TIONS.

(a) D ELAY IN P HASE O UT OF M EDICARE H OSPICE B UDGET N EUTRALITY A DJUSTMENT FACTOR D URING FISCAL Y EAR 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Secretary of Health and Human Services shall not phase out

3

or eliminate the budget neutrality adjustment factor in the

4

Medicare hospice wage index before October 1, 2009, and

5 6

the Secretary shall recompute and apply the final Medicare

7

hospice wage index for fiscal year 2009 as if there had

8

been no reduction in the budget neutrality adjustment factor.

9 10 11

(b) N ON -A PPLICATION OF P HASED -O UT INDIRECT M EDICAL

12

E DUCATION (IME) A DJUSTMENT FACTOR

13

2009.—

14

FOR

FISCAL Y EAR

(1) IN GENERAL.—Section 412.322 of title 42,

15

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) N O 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

funds otherwise available, for purposes of implementing the

3

provisions of subsections (a) and (b), including costs

4

incurred in reprocessing claims in carrying out such provi-

5 6

sions, the Secretary of Health and Human Services shall

7

provide for the transfer from the Federal Hospital Insurance

8

Trust Fund established under section 1817 of the Social

9

Security Act (42 U.S.C. 1395i) to the Centers for Medicare

10

& Medicaid Services Program Management Account of

11

$2,000,000 for fiscal year 2009. 12 13

SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL COR RECTIONS.

14 15

(a) P AYMENT.—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: ‘‘D ELAY 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

entity that is a provider-based, off-campus

3

location of a subsection (d) hospital which did not

4

provide services payable under section 1886(d) of

5

the Social Security Act at the off- campus

6 7

location’’ after ‘‘freestanding long-term care

8

hospitals’’; and

9

(2) in paragraph (2)—

10

(A) in subparagraph (B)(ii), by inserting ‘‘or

11

that is described in section 412.22(h)(3)(i) of such

12

title’’ before the period; and

13 14

(B) in subparagraph (C), by striking ‘‘the

15

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) M ORATORIUM .—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

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1 2 3 4

the hospital or facility’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall be effective and apply as if included in the

5 6 7

enactment of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law 110–173).

8

TITLE V—MEDICAID

9

PROVISIONS

10

SEC. 5000. TABLE OF CONTENTS OF TITLE.

11

The table of contents of this title is as follows: 12 13 14 15

Sec. 5000. Table of contents of title. Sec. 5001. Temporary increase of Medicaid FMAP. Sec. 5002. Moratoria on certain regulations. Sec. 5003. Transitional Medicaid assistance (TMA). Sec. 5004. Protections for Indians under Medicaid and CHIP. Sec. 5005. Consultation on Medicaid and CHIP. Sec. 5006. Temporary increase in DSH allotments during recession. SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

(a) P ERMITTING M AINTENANCE

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(after the application of paragraph (1)), the greater of

3

such FMAP for the State for fiscal year 2008 or fiscal

4

year 2009 shall be substituted for the State’s FMAP

5 6 7

for fiscal year 2010, before the application of this section; and

8

(3) fiscal year 2011 is less than the FMAP as so

9

determined for fiscal year 2008, fiscal year 2009 (after

10

the application of paragraph (1)), or fiscal year 2010

11

(after the application of paragraph (2)), the greatest of 12 13

such FMAP for the State for fiscal year 2008, fiscal year

14

2009, or fiscal year 2010 shall be substituted for the

15

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) G ENERAL 4.9 P ERCENTAGE P OINT INCREASE.— (1) IN GENERAL.—Subject to subsections (e), (f), and (g) and paragraph (2), for each State for calendar quarters during the recession adjustment period (as defined in subsection (h)(2)), the FMAP (after the application of subsection (a)) shall be increased (without regard to any limitation otherwise specified in section 1905(b) of the Social Security Act) by 4.9 percentage points. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(2) S PECIAL ELECTION FOR TERRITORIES.—In the

3

case of a State that is not one of the 50 States or the

4

District of Columbia, paragraph (1) shall only apply if

5 6

the State makes a one-time election, in a form and

7

manner specified by the Secretary and for the entire

8

recession adjustment period, to apply the increase in

9

FMAP under paragraph (1) and a 10 percent increase

10

under subsection (d) instead of applying a 20 percent

11

increase under subsection (d). 12 13 14

(c) A DDITIONAL A DJUSTMENT T O R EFLECT INCREASE IN U NEMPLOYMENT.—

15

(1) IN GENERAL.—Subject to subsections (e), (f), and (g), in the case of a State that is a high unemployment State (as defined in paragraph (2)) for a calendar quarter during the recession adjustment period, the FMAP (taking into account the application of subsections (a) and (b)) for such quarter shall be further increased by the high unemployment percentage point adjustment specified in paragraph (3) for the State for the quarter. (2) H IGH UNEMPLOYMENT STATE .— (A) IN GENERAL.—In this subsection, subject to subparagraph (B), the term ‘‘high unemHR 1 PP

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2

1 2

ployment State’’ means, with respect to a calendar

3

quarter in the recession adjustment period, a State

4

that is 1 of the 50 States or the District of

5

Columbia and for which the State unemployment

6 7

increase percentage (as computed under paragraph

8

(5)) for the quarter is not less than 1.5 percentage

9

points.

10

(B) M AINTENANCE OF STATUS.—If a State is a

11

high unemployment State for a calendar quarter, it 12

shall remain a high unemployment State for each

13 14

subsequent calendar quarter ending before July 1,

15

2010. (3) H IGH UNEMPLOYMENT PERCENTAGE POINT ADJUSTMENT.—

(A) IN GENERAL.—The high unemployment percentage point adjustment specified in this paragraph for a high unemployment State for a quarter is equal to the product of— (i) the SMAP for such State and quarter (determined after the application of subsection (a) and before the application of subsection (b)); and

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2

1

(ii) subject to subparagraph (B), the

2 3

State unemployment reduction factor spec-

4

ified in paragraph (4) for the State and

5

quarter.

6

(B)

7

M AINTENANCE

OF

8

ADJUSTMENT LEVEL FOR CERTAIN QUARTERS.—In

9

case shall the State unemployment reduction

10

no

factor applied under subparagraph (A)(ii) for a

11

State for a quarter (beginning on or after January 12

1, 2009, and ending before July 1, 2010) be less

13 14

than the State unemployment reduction factor

15

applied to the State for the previous quarter (taking into account the application of this subparagraph). (4) S TATE UNEMPLOYMENT REDUCTION FACTOR.—In the case of a high unemployment State for which the State unemployment increase percentage (as computed under paragraph (5)) with respect to a calendar quarter is— (A) not less than 1.5, but is less than 2.5, percentage points, the State unemployment re duction factor for the State and quarter is 6

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2

1

percent;

2 3

(B) not less than 2.5, but is less than 3.5,

4

percentage points, the State unemployment re-

5

duction factor for the State and quarter is 12

6

percent; or

7 8

(C) not less than 3.5 percentage points, the

9

State unemployment reduction factor for the State

10

and quarter is 14 percent.

11

(5) C OMPUTATION OF STATE UNEMPLOYMENT 12 13

INCREASE PERCENTAGE .—

(A) IN

14 15

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 which

data

are

available,

for

subject

subparagraph (C); exceeds (ii) the lowest average monthly unemployment rate for the State for any 3-consecutive-month period preceding the period

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to

2

1 2

described in clause (i) and beginning on or

3

after January 1, 2006.

4

(B) A VERAGE MONTHLY UNEMPLOYMENT RATE

5 DEFINED .—In

6

this paragraph, the term ‘‘average

7

monthly unemployment rate’’ means the average

8

of the monthly number unemployed, divided by

9

the average of the monthly civilian labor force,

10

seasonally adjusted, as determined based on the

11

most recent monthly publications of the Bureau of 12

Labor Statistics of the Department of Labor.

13

(C) S PECIAL RULE .—With respect to—

14 15

(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. HR 1 PP

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1

2

2

(d) INCREASE IN C AP ON M EDICAID P AYMENTS TO

3 4

T ERRITORIES.—Subject to subsections (f) and (g) , with respect to entire fiscal years occurring during the recession

5 6

adjustment period and with respect to fiscal years only a

7

portion of which occurs during such period (and in

8

proportion to the portion of the fiscal year that occurs

9

during such period), the amounts otherwise determined for

10

Puerto Rico, the Virgin Islands, Guam, the Northern Mar-

11

iana Islands, and American Samoa under subsections (f) 12 13

and (g) of section 1108 of the Social Security Act (42

14

U.S.C. 1308) shall each be increased by 20 percent (or, in

15

the case of an election under subsection (b)(2), 10 percent). (e) S COPE OF A PPLICATION .—The increases in the FMAP for a State under this section shall apply for purposes of title XIX of the Social Security Act and— (1) the increases applied under subsections (a), (b), and (c) shall not apply with respect— (A) to payments under parts A, B, and D of title IV or title XXI of such Act (42 U.S.C. 601 et seq. and 1397aa et seq.); (B) to payments under title XIX of such Act that are based on the enhanced FMAP described in section 2105(b) of such Act (42 U.S.C. HR 1 PP

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2

1

1397ee(b)); and

2 3

(C) to payments for disproportionate share

4 5

hospital (DSH) payment adjustments under section

6

1923 of such Act (42 U.S.C. 1396r–4); and

7

(2) the increase provided under subsection (c) shall

8

not apply with respect to payments under part E of title

9 10

IV of such Act. (f) S TATE INELIGIBILITY AND LIMITATION .—

11 12

(1) IN GENERAL.—Subject to paragraphs (2) and

13

(3), a State is not eligible for an increase in its FMAP

14

under subsection (a), (b), or (c), or an increase in a cap

15

amount under subsection (d), if eligibility standards, methodologies, or procedures under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) are more restrictive than the eligibility standards, methodologies, or procedures, respectively, under such plan (or waiver) as in effect on July 1, 2008. (2) S TATE REINSTATEMENT OF ELIGIBILITY PERMITTED .—Subject

to paragraph (3), a State that has

restricted eligibility standards, methodologies, or

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2

1 2

procedures under its State plan under title XIX of the

3

Social Security Act (including any waiver under such

4

title or under section 1115 of such Act (42 U.S.C.

5 6

1315)) after July 1, 2008, is no longer ineligible under

7

paragraph (1) beginning with the first calendar quarter

8

in which the State has reinstated eligibility standards,

9

methodologies, or procedures that are no more

10

restrictive than the eligibility standards,

11

methodologies, or procedures, respectively, under such 12 13

plan (or waiver) as in effect on July 1, 2008. (3) S PECIAL RULES.—A State shall not be ineligible

14 15

under paragraph (1)— (A) for the calendar quarters before July 1, 2009, on the basis of a restriction that was applied after July 1, 2008, and before the date of the enactment of this Act, if the State, prior to July 1, 2009, reinstated eligibility standards, methodologies, or procedures that are no more restrictive than the eligibility standards, methodologies, or procedures, respectively, under such plan (or waiver) as in effect on July 1, 2008; or

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2

1 2

(B) on the basis of a restriction that was

3

effective under State law as of July 1, 2008, and

4

would have been in effect as of such date, but for a

5

delay (of not longer than 1 calendar quarter) in the

6 7

approval of a request for a new

8

section 1115 of such Act with respect to such

9

restriction.

10

waiver under

(4) S TATE ’ S APPLICATION TOWARD RAINY DAY

11 FUND .—A

State is not eligible for an increase in its

12 13

FMAP under subsection (b) or (c), or an increase in a

14

cap amount under subsection (d), if any amounts

15

attributable (directly or indirectly) to such increase are deposited or credited into any reserve or rainy day fund of the State. (5) R ULE OF CONSTRUCTION .—Nothing in paragraph (1) or (2) shall be construed as affecting a State’s flexibility with respect to benefits offered under the State Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)). (6) N O WAIVER AUTHORITY .—The Secretary may

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2

1 2

not waive the application of this subsection or

3

subsection (g) under section 1115 of the Social Se-

4

curity Act or otherwise.

5 6

(g) R EQUIREMENT FOR C ERTAIN S TATES.—In the case of

7

a State that requires political subdivisions within the State to

8

contribute toward the non-Federal share of expenditures under

9

the State Medicaid plan required under section 1902(a)(2) of

10

the Social Security Act (42 U.S.C. 1396a(a)(2)), the State is

11

not eligible for an increase in its FMAP under subsection (a), 12 13

(b), or (c), or an increase in a cap amount under subsection

14

(d), if it requires that such political subdivisions pay a greater

15

percentage of the non-Federal share of such expenditures for quarters during the recession adjustment period, than the percentage that would have been required by the State under such plan on September 30, 2008, prior to application of this section. (h) D EFINITIONS.—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

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2

1 2

except as otherwise specified.

3 4

(2) R ECESSION ADJUSTMENT PERIOD .—The term ‘‘recession adjustment period’’ means the period

5 6 7

beginning on October 1, 2008, and ending on December 31, 2010. (3) S ECRETARY .—The term ‘‘Secretary’’ means

8 9

the Secretary of Health and Human Services.

10

(4) SMAP.—The term ‘‘SMAP’’ means, for a

11

State, 100 percent minus the Federal medical assistance 12 13

percentage. (5) S TATE .—The term ‘‘State’’ has the meaning

14 15

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) S UNSET.—This section shall not apply to items and services furnished after the end of the recession adjustment period. SEC. 5002. MORATORIA ON CERTAIN REGULATIONS.

(a) E XTENSION OF M ORATORIA ON C ERTAIN M EDICAID R EGULATIONS.—The following sections are each amended by striking ‘‘April 1, 2009’’ and inserting ‘‘July 1, 2009’’: (1) Section 7002(a)(1) of the U.S. Troop ReadHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

iness, Veterans’ Care, Katrina Recovery, and Iraq

3

Accountability Appropriations Act, 2007 (Public Law

4

110–28), as amended by section 7001(a)(1) of the

5 6 7

Supplemental Appropriations Act, 2008 (Public Law 110–252). (2) Section 206 of the Medicare, Medicaid, and

8 9 10

SCHIP Extension Act of 2007 (Public Law 110– 173), as amended by section 7001(a)(2) of the Supplemental

11

Appropriations Act, 2008 (Public Law 110–252). 12

(3) Section 7001(a)(3)(A) of the Supplemental

13 14

Appropriations Act, 2008 (Public Law 110–252).

15

(b) A DDITIONAL M EDICAID M ORATORIUM .—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

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2

1 2

outpatient hospital facility services under the Medicaid

3

program published on November 7, 2008 (73 Federal

4

Register 66187).

5 SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA).

6 7

(a) 18-M ONTH E XTENSION .— (1) IN GENERAL.—Sections 1902(e)(1)(B) and

8 9 10 11

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 ‘‘De-

12 13

cember 31, 2010’’. (2) E FFECTIVE DATE .—The amendments made by

14 15

this subsection shall take effect on July 1, 2009. (b) S TATE O PTION OF INITIAL 12-M ONTH E LIGIBILITY .—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) O PTION OF 12-MONTH INITIAL ELIGIBILITY PERIOD .—A

State may elect to treat any reference in

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2

1 2

reference to a 12-month period (or 12 months). In the

3

case of such an election, subsection (b) shall not

4

apply.’’; and

5

(3) in subsection (b)(1), by inserting ‘‘but subject

6 7

to subsection (a)(5)’’ after ‘‘Notwithstanding any

8

other provision of this title’’.

9

(c) R EMOVAL OF R EQUIREMENT FOR P REVIOUS R ECEIPT

10

OF M EDICAL A SSISTANCE .—Section

1925(a)(1) of such Act

11

(42 U.S.C. 1396r–6(a)(1)), as amended by subsection 12 13

(b)(1), is further amended— (1) by inserting ‘‘subparagraph (B) and’’ before

14 15

‘‘paragraph (5)’’; (2) by redesignating the matter after ‘‘R E QUIREMENT.—’’

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) S TATE OPTION TO WAIVE REQUIRE MENT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

months or that had applied for and was eligible

3

for such aid for fewer than 3 months during the 6

4

immediately preceding months described in such

5

subparagraph.’’.

6 7

(d) CMS R EPORT ON E NROLLMENT AND P ARTICIPATION

8

R ATES U NDER TMA.—Section 1925 of such Act (42 U.S.C.

9

1396r–6), as amended by this section, is further amended

10

by adding at the end the following new subsection:

11

‘‘(g) C OLLECTION AND R EPORTING OF P ARTICIPATION 12 13

INFORMATION .— ‘‘(1) C OLLECTION OF INFORMATION FROM

14 15

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 participa tion 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

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2

1 2

enrollment information under this title is submitted to the

3

Secretary.

4

‘‘(2) A NNUAL REPORTS TO CONGRESS.—Using the

5 6

information submitted under paragraph (1), the

7

Secretary shall submit to Congress annual reports

8

concerning enrollment and participation rates described

9

in such paragraph.’’.

10

(e) E FFECTIVE D ATE.—The amendments made by

11

subsections (b) through (d) shall take effect on July 1, 2009. 12 13

SEC. 5004. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.

14 15

(a) P REMIUMS AND C OST S HARING P ROTECTION U NDER M EDICAID .— (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) N O P REMIUMS

OR

C OST S HARING

FURNISHED ITEMS OR S ERVICES D IRECTLY

FOR

BY INDIAN

INDIANS H EALTH

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2

1 2

S ERVICES.—

3 4 5

‘‘(1) N O COST SHARING FOR ITEMS OR SERV ICES FURNISHED TO INDIANS THROUGH INDIAN HEALTH PROGRAMS.—

6

‘‘(A) IN GENERAL.—No enrollment fee,

7 8

premium, or similar charge, and no deduction,

9

copayment, cost sharing, or similar charge shall

10

be imposed against an Indian who is furnished an

11

item or service directly by the Indian Health

12 13

Service, an Indian Tribe, Tribal Organization, or

14

Urban Indian Organization or through referral

15

under contract health services for which payment may be made under this title. ‘‘(B) N O 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

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2

1 2

enrollment fee, premium, or similar charge, or any

3

deduction, copayment, cost sharing, or similar

4

charge that would be due from the Indian but for

5

the operation of subparagraph (A).

6

‘‘(2) R ULE OF CONSTRUCTION .—Nothing in this

7 8

subsection shall be construed as restricting the

9

application of any other limitations on the imposition of

10

premiums or cost sharing that may apply to an

11

individual receiving medical assistance under this title 12 13

who is an Indian.’’. (2)

14 15

C ONFORMING

AMENDMENT.—Section

1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) is amended— (A) in subparagraph (A), by adding at the end the following new clause: ‘‘(vi) An Indian who is furnished an item or service directly by the Indian

Health

Service, an Indian Tribe, Tribal Organization or Urban Indian Organiza tion or through referral under contract health services.’’; and (B) in subparagraph (B), by adding at the

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2

1

end the following new clause:

2 3

‘‘(ix) Items and services furnished to

4

an Indian directly by the Indian Health

5

Service, an Indian Tribe, Tribal Organization

6 7

or Urban Indian Organization or through

8

referral under contract health services.’’.

9 10

(3) E FFECTIVE

DATE .—The

amendments made by

this subsection shall take effect on October 1, 2009.

11

(b) T REATMENT OF C ERTAIN P ROPERTY FROM R E 12 13

SOURCES FOR M EDICAID AND

(1) M EDICAID .—Section 1902 of the Social Se-

14 15

CHIP E LIGIBILITY .—

curity Act (42 U.S.C. 1396a), as amended by section 3003(a) of the Health Insurance Assistance for the Unemployed Act of 2009, is amended by adding at the end the following new subsection: ‘‘(ee) Notwithstanding any other requirement of this title or any other provision of Federal or State law, a State shall disregard the following property from resources for purposes of determining the eligibility of an individual who is an Indian for medical assistance under this title: ‘‘(1) Property, including real property and improvements, that is held in trust, subject to Federal

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2

1 2

restrictions, or otherwise under the supervision of the

3

Secretary of the Interior, located on a reservation,

4

including any federally recognized Indian Tribe’s

5 6

reservation, pueblo, or colony, including former

7

reservations in Oklahoma, Alaska Native regions

8

established by the Alaska Native Claims Settlement

9

Act, and Indian allotments on or near a reservation as

10

designated and approved by the Bureau of Indian

11

Affairs of the Department of the Interior. 12

‘‘(2) For any federally recognized Tribe not de-

13 14

scribed in paragraph (1), property located within the

15

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 significance or rights that support subsist

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cultural

2

1 2

ence or a traditional lifestyle according to applicable

3

tribal law or custom.’’.

4

(2) A PPLICATION

TO CHIP.—Section

2107(e)(1) of

5 6 7

such Act (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the following new subparagraph:

8

‘‘(E) Section 1902(ff) (relating to disregard of

9

certain property for purposes of making eligibility

10

determinations).’’.

11

(c) C ONTINUATION OF C URRENT LAW P ROTECTIONS OF 12 13

C ERTAIN INDIAN P ROPERTY FROM M EDICAID E STATE

14

R ECOVERY .—Section 1917(b)(3) of the Social Security Act

15

(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 HR 1 PP

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2

1 2

the Federal responsibility for Indian Tribes and

3

Alaska Native Villages. Nothing in this

4

subparagraph shall be construed as preventing the

5

Secretary from providing additional estate

6 7

recovery exemptions under this title for

8

Indians.’’.

9 10 11

SEC. 5005. CONSULTATION ON MEDICAID AND CHIP.

(a) IN G ENERAL.—Section 1139 of the Social Security Act (42 U.S.C. 1320b–9) is amended to read as follows:

12

‘‘ CONSULTATION WITH TRIBAL TECHNICAL ADVISORY

13

GROUP (TTAG)

14 15

‘‘S EC. 1139. The Secretary shall maintain within the Centers for Medicaid & Medicare Services (CMS) a Tribal Technical Advisory Group, which was first established in accordance with requirements of the charter dated September 30, 2003, and the Secretary shall include in such Group a representative of the Urban Indian Organizations and the Service. The representative of the Urban Indian Organization shall be deemed to be an elected officer of a tribal government for purposes of applying section 204(b) of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534(b)).’’. (b) S OLICITATION OF A DVICE U NDER M EDICAID AND HR 1 PP

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2

1 2

CHIP.—

3 4

(1) M EDICAID STATE PLAN AMENDMENT.—Section 1902(a) of the Social Security Act (42 U.S.C.

5 6

1396a(a)) is amended— (A) in paragraph (70), by striking ‘‘and’’ at

7

the end;

8 9

(B) in paragraph (71), by striking the period

10

at the end and inserting ‘‘; and’’; and

11

(C) by inserting after paragraph (71), the 12

following new paragraph:

13 14

‘‘(72) in the case of any State in which 1 or more

15

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

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2

1 2

projects likely to have a direct effect on Indians,

3

Indian Health Programs, or Urban Indian

4

Organizations; and

5

‘‘(B) may include appointment of an advisory

6 7

committee and of a designee of such Indian Health

8

Programs and Urban Indian Orga

9

nizations to the medical care advisory committee

10

advising the State on its State plan under this

11

title.’’. 12

(2) A PPLICATION

13

TO CHIP.—Section

2107(e)(1) of

14

such Act (42 U.S.C. 1397gg(e)(1)), as amended

by

15

section 5004(b), is amended by adding at the end the following new subparagraph: ‘‘(F) Section 1902(a)(72) (relating to requiring certain States to seek advice from designees of Indian Health Programs and Urban Indian Organizations).’’. (c)

R ULE

OF

C ONSTRUCTION .—Nothing

in

the

amendments made by this section shall be construed as superseding existing advisory committees, working groups, guidance, or other advisory procedures established by the Secretary of Health and Human Services or by any State with

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2

1 2 3

respect to the provision of health care to Indians. SEC. 5006. TEMPORARY INCREASE IN DSH ALLOTMENTS

4 5

DURING RECESSION.

Section 1923(f)(3) of the Social Security Act (42

6 7

U.S.C. 1396r–4(f)(3)) is amended— (1) in subparagraph (A), by striking ‘‘paragraph

8 9 10

(6)’’ and inserting ‘‘paragraph (6) and subparagraph (E)’’; and

11

(2) by adding at the end the following new sub-

12

paragraph: 13

‘‘(E) T EMPORARY INCREASE IN ALLOTMENTS

14

DURING RECESSION .—

15

‘‘(i) IN GENERAL.—Subject to clause (ii), the DSH allotment for any State— ‘‘(I) for fiscal year 2009 is equal to 102.5 percent of the DSH allotment that would be determined under this paragraph for the State for fiscal year 2009 without application of this subparagraph, notwithstanding subparagraph (B); ‘‘(II) for fiscal year 2010 is equal to 102.5 percent of the DSH allotment for the State for fiscal year 2009, as HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

determined under subclause (I); and

2 3

‘‘(III) for each succeeding fiscal

4

year is equal to the DSH allotment for

5

the State under this paragraph de-

6

termined without applying subclauses

7 8

(I) and (II).

9

‘‘(ii) A PPLICATION .—Clause (i) shall

10

not apply to a State for a year in the case

11

that the DSH allotment for such State for

12

such year under this paragraph determined

13 14

without applying clause (i) would grow

15

higher than the DSH allotment specified under clause (i) for the State for such year.’’.

TITLE VI—BROADBAND COMMUNICATIONS SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPA BILITY AND AVAILABILITY.

(a) E STABLISHMENT.—To provide a comprehensive nationwide inventory of existing broadband service capability and availability, the National Telecommunications and Information Administration (‘‘NTIA’’) shall develop and maintain a broadband inventory map of the United HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

States that identifies and depicts the geographic extent to

3

which broadband service capability is deployed and

4

available from a commercial provider or public provider

5 6 7

throughout each State. (b) P UBLIC A VAILABILITY AND INTERACTIVITY .— Not

8

later than 2 years after the date of enactment of this Act,

9

the NTIA shall make the broadband inventory map

10

developed and maintained pursuant to this section acces-

11

sible by the public on a World Wide Web site of the NTIA 12 13 14

in a form that is interactive and searchable. SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT GRANT PROGRAMS.

15

(a) G RANTS A UTHORIZED .— (1) IN GENERAL.—The National Telecommunications and Information Administration (‘‘NTIA’’) is authorized to carry out a program to award grants to eligible entities for the non-recurring costs associated with the deployment of broadband infrastructure in rural, suburban, and urban areas, in accordance with the requirements of this section. (2) P ROGRAM WEBSITE .—The NTIA shall develop and maintain a website to make publicly available information about the program described in paragraph HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(1), including—

3

(A) each prioritization report submitted by

4

a State under subsection (b);

5

(B) a list of eligible entities that have applied

6

for a grant under this section, and the area or

7

areas the entity proposes to serve; and

8 9

(C) the status of each such application,

10 11

whether approved, denied, or pending. (b) S TATE P RIORITIES.—

12

(1) P RIORITIES REPORT SUBMISSION .—Not later than

13 14

75 days after the date of enactment of this section, each

15

State intending to participate in the program under this section shall submit to the NTIA a report indicating the geographic areas of the State which— (A) for the purposes of determining the need for Wireless Deployment Grants under subsection (c), the State considers to have the greatest priority for— (i) wireless voice service in unserved areas; and (ii) advanced wireless broadband service in underserved areas; and (B) for the purposes of determining the need HR 1 PP

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2

1 2

for

3

subsection (d), the State considers to have the

4

Broadband

Deployment

Grants

under

greatest priority for—

5

(i)

6

basic broadband

service

in unserved areas; and

7

(ii) advanced broadband service in un-

8 9

derserved areas.

10

(2) LIMITATION .—The unserved and underserved

11

areas identified by a State in the report required by this 12 13 14

subsection shall not represent, in the aggregate, more than 20 percent of the population of such State.

15

(c) W IRELESS D EPLOYMENT G RANTS.— (1) A UTHORIZED ACTIVITY .—The NTIA shall award Wireless Deployment Grants in accordance with this subsection from amounts authorized for Wireless Deployment Grants by this subtitle to eligible entities to deploy necessary infrastructure for the provision of wireless voice service or advanced wireless broadband service to end users in designated areas. (2) G RANT DISTRIBUTION .—The NTIA shall seek to distribute grants, to the extent possible, so that 25 percent of the grants awarded under this subsection HR 1 PP

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2

1 2

shall be awarded to eligible entities for providing

3

wireless voice service to unserved areas and 75

4

percent of grants awarded under this subsection shall

5 6 7 8

be awarded to eligible entities for providing advanced wireless broadband service to underserved areas. (d) B ROADBAND D EPLOYMENT G RANTS.—

9 10 11

(1) A UTHORIZED ACTIVITY .—The NTIA shall award Broadband Deployment Grants in accordance with this subsection from amounts authorized for

12 13

Broadband Deployment Grants by this subtitle to el-

14

igible entities to deploy necessary infrastructure for the

15

provision of basic broadband service or advanced broadband service to end users in designated areas. (2) G RANT DISTRIBUTION .—The NTIA shall seek to distribute grants, to the extent possible, so that 25 percent of the grants awarded under this subsection shall be awarded to eligible entities for providing basic broadband service to unserved areas and 75 percent of grants awarded under this subsection shall be awarded to eligible entities for providing advanced broadband service to underserved areas. (e) G RANT R EQUIREMENTS.—The NTIA shall—

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2

1

(1) adopt rules to protect against unjust enrich-

2 3

ment; and

4

(2) ensure that grant recipients—

5

(A) meet buildout requirements; 6

(B) maximize use of the supported infra-

7

structure by the public;

8 9

(C) operate basic and advanced broadband

10

service networks on an open access basis;

11

(D) operate advanced wireless broadband

12

service on a wireless open access basis; and

13

(E) adhere to the principles contained in the

14

Federal

15

Communications

Commission’s broadband policy statement (FCC 05–151, adopted August 5, 2005). (f) A PPLICATIONS.— (1) S UBMISSION .—To be considered for a grant awarded under subsection (c) or (d), an eligible entity shall submit to the NTIA an application at such time, in such manner, and containing such information and assurances as the NTIA may require. Such an application shall include— (A) a cost-study estimate for serving the particular geographic area to be served by the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

entity;

2 3

(B) a proposed build-out schedule to resi-

4

dential households and small businesses in the

5

area;

6 7

(C) for applicants for Wireless Deployment

8

Grants under subsection (c), a build-out schedule

9

for geographic coverage of such areas; and

10

(D) any other requirements the NTIA deems

11

necessary. 12

(2) S ELECTION .—

13

(A) N OTIFICATION .—The NTIA shall notify

14 15

each eligible entity that has submitted a complete application whether the entity has been approved or denied for a grant under this section in a timely fashion. (B)

G RANT

IDERATIONS.—In

DISTRIBUTION

CONS

awarding grants under this sec-

tion, the NTIA shall, to the extent practical— (i) award not less than one grant in each State; (ii) give substantial weight to whether an application is from an eligible entity to deploy

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2

1

infrastructure in an area that is an area—

2 3

(I) identified by a State in a report

4

submitted under subsection (b); or

5

(II) in which the NTIA determines

6 7

there will be a significant amount of

8

public safety or emergency response

9

use of the infrastructure;

10

(iii) consider whether an application

11

from an eligible entity to deploy infrastruc12

ture in an area—

13 14

(I) will, if approved, increase the

15

affordability of, or subscribership to, service to the greatest population of underserved users in the area; (II) will, if approved, enhance service for health care delivery, edu cation, or children to the greatest population of underserved users in the area;

(III) contains concrete plans for enhancing

computer

ownership

computer literacy in the area;

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or

2

1 2

(IV) is from a recipient of more than

3

20 percent matching grants from State,

4

local, or private entities for service in the

5

area and the extent of such commitment;

6

(V) will, if approved, result in

7 8

unjust enrichment because the eligible

9

entity has applied for, or intends to

10

apply for, support for the non-recurring

11

costs through another Federal program 12

for service in the area; and

13

(VI) will, if approved, significantly

14 15

improve

interoperable

broadband communications systems available for use by public safety and emergency response; and (iv) consider whether the eligible entity is a socially and economically disadvantaged small business concern, as defined under section 8(a) of the Small Business Act (15 U.S.C. 637). (g)

C OORDINATION

AND

C ONSULTATION .—The NTIA shall coordinate with the

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1

2

2

Federal Communications Commission and shall consult

3

with other appropriate Federal agencies in implementing this

4

section.

5 6

(h) R EPORT R EQUIRED .—The NTIA shall submit an

7

annual report to the Committee on Energy and Commerce

8

of the House of Representatives and the Committee on

9

Commerce, Science, and Transportation of the Senate for 5

10

years assessing the impact of the grants funded under this

11

section on the basis of the objectives and criteria described 12 13

in subsection (f)(2)(B)(iii).

14

(i) R ULEMAKING A UTHORITY .—The NTIA shall have the

15

authority to prescribe such rules as necessary to carry out the purposes of this section. (j) D EFINITIONS.—For the purpose of this section— (i) the term ‘‘advanced broadband service’’ means a service delivering data to the end user transmitted at a speed of at least 45 megabits per second downstream and at least 15 megabits per second upstream; (ii) the term ‘‘advanced wireless broadband service’’ means a wireless service delivering to the end user data transmitted at a speed of at least 3 megabits per second downstream and at least 1

megabit per

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2

1 2

wireless network;

3 4

(3) the term ‘‘basic broadband service’’ means a service delivering data to the end user transmitted at

5

a speed of at least 5 megabits per second downstream 6 7

and at least 1 megabit per second upstream; (4) the term ‘‘eligible entity’’ means—

8 9

a a provider of wireless voice service, ad-

10

vanced

11

wireless

broadband

service,

basic broadband service, or advanced

12

broadband service, including a satellite carrier that

13

provides any such service;

14

b a State or unit of local government, or

15

agency or instrumentality thereof, that is or intends to be a provider of any such service; and c any other entity, including construction companies, tower companies, backhaul companies, or other service providers, that the NTIA authorizes by rule to participate in the programs under this section, if such other entity is required to provide access to the supported infrastructure on a neutral, reasonable basis to maximize use; (5) the term ‘‘interoperable broadband commuHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

nications systems’’ means communications systems

3

which enable public safety agencies to share infor-

4

mation among local, State, Federal, and tribal public

5 6 7

safety agencies in the same area using voice or data signals via advanced wireless broadband service; (6) the term ‘‘open access’’ shall be defined by

8 9 10

the Federal Communications Commission not later than 45 days after the date of enactment of this section;

11 12

(7) the term ‘‘State’’ includes the District of

13 14

Columbia and the territories and possessions;

15

(8) the term ‘‘underserved area’’ shall be defined by the Federal Communications Commission not later than 45 days after the date of enactment of this section; (9) the term ‘‘unserved area’’ shall be defined by the Federal Communications Commission not later than 45 days after the date of enactment of this section; (10) the term ‘‘wireless open access’’ shall be defined by the Federal Communications Commission not later than 45 days after the date of enactment of this section; and

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2

1 2

(11) the term ‘‘wireless voice service’’ means the

3

provision of two-way, real-time, voice communications

4

using a mobile service.

5

(k) R EVIEW OF D EFINITIONS.—Not later than 3 months

6 7

after the date the NTIA makes a broadband inventory map

8

of the United States accessible to the public pursuant to

9

section 6001(b), the Federal Communications Commission

10

shall review the definitions of ‘‘underserved area’’ and

11

‘‘unserved area’’, as defined by the Commission within 45 12 13

days after the date of enactment of this Act (as required by

14

paragraphs (8) and (9) of subsection (j)), and shall revise

15

such definitions based on the data used by the NTIA to develop and maintain such map. SEC. 6003. NATIONAL BROADBAND PLAN.

(a) R EPORT R EQUIRED .—Not later than 1 year after the date of enactment of this section, the Federal Communications Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, a report containing a national broadband plan. (b) C ONTENTS OF P LAN .—The national broadband plan required by this section shall seek to ensure that all people of HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the United States have access to broadband ca

3

pability and shall establish benchmarks for meeting that

4

goal. The plan shall also include—

5

(1) an analysis of the most effective and efficient

6 7

mechanisms for ensuring broadband access by all

8

people of the United States;

9 10

(2) a detailed strategy for achieving affordability of such service and maximum utilization of broadband

11

infrastructure and service by the public; and 12

(3) a plan for use of broadband infrastructure and

13 14

services in advancing consumer welfare, civic

15

participation, public safety and homeland security, community development, health care delivery, energy independence and efficiency, education, worker training, private sector investment, entrepreneurial activity, job creation and economic growth, and other national purposes.

TITLE VII—ENERGY SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007.

(a) Section 543(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17153(a)) is amended— (1) by redesignating paragraphs (2) through HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(4) as paragraphs (3) through (5), respectively; and

2 3 4

(2) by striking paragraph (1) and inserting the following:

5

‘‘(1) 34 percent to eligible units of local govern6 7

ment–alternative 1, in accordance with subsection (b); ‘‘(2) 34 percent to eligible units of local govern-

8 9 10 11

ment–alternative 2, in accordance with subsection (b);’’. (b) Section 543(b) of the Energy Independence and

12 13

Security Act of 2007 (42 U.S.C. 17153(b)) is amended by

14

striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection (a)(1)

15

or (2)’’. (c) Section 548(a)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ‘‘; provided’’ and all that follows

through

‘‘541(3)(B)’’. SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007.

Title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 and following) is amended as follows: (1) By amending subparagraph (A) of section 1304(b)(3) to read as follows:

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2

1

‘‘(A) IN GENERAL.—In carrying out the

2 3

initiative, the Secretary shall provide financial

4

support to smart grid demonstration projects in

5

urban, suburban, and rural areas, including areas

6 7

where electric system assets are controlled by

8

tax-exempt entities and areas where electric

9

system assets are controlled by investor-owned

10

utilities.’’.

11

(2) By amending subparagraph (C) of section 12 13

1304(b)(3) to read as follows: ‘‘(C) FEDERAL SHARE OF COST OF TECH -

14 15

NOLOGY 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) A VAILABILITY OF DATA.—The Secretary

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2

1 2

shall establish and maintain a smart grid

3

information clearinghouse in a timely manner

4

which will make data from smart grid dem-

5

onstration projects and other sources available to

6 7

the public. As a condition of receiving finan cial

8

assistance under this subsection, a utility or other

9

participant in a smart grid demonstration project

10

shall provide such information as the Secretary

11

may require to become available through the 12

smart grid information clearinghouse in the form

13 14

and within the timeframes as directed by the

15

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) ARDS.—The

O PEN

PROTOCOLS

AND

STAND -

Secretary shall require as a condition

of receiving funding under this subsection that demonstration projects utilize Internet- based or other open protocols and standards if available and appropriate.’’.

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2

1

(4) By amending paragraph (2) of section 1304(c)

2 3

to read as follows:

4

‘‘(2) to carry out subsection (b), such sums as

5 6

may be necessary.’’. (5) By amending subsection (a) of section 1306

7 8

by striking ‘‘reimbursement of one-fifth (20 percent)’’

9

and inserting ‘‘grants of up to one-half (50 percent)’’.

10

(6) By striking the last sentence of subsection

11

(b)(9) of section 1306. 12

(7) By striking ‘‘are eligible for’’ in subsection

13 14

(c)(1) of section 1306 and inserting ‘‘utilize’’.

15

(8) By amending subsection (e) of section 1306 to read as follows: ‘‘(e) P ROCEDURES AND R ULES.—The Secretary shall— ‘‘(1) establish within 60 days after the enactment of the American Recovery and Reinvestment Act of 2009 procedures by which applicants can obtain grants of not more than one-half of their documented costs; ‘‘(2) require as a condition of receiving a grant under this section that grant recipients utilize Internet-based or other open protocols and standards if available and appropriate;

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2

1

‘‘(3) establish procedures to ensure that there is

2 3 4

no duplication or multiple payment or recovery for the same investment or costs, that the grant goes to the

5 6

party making the actual expenditures for qualifying

7

smart grid investments, and that the grants made have

8

significant effect in encouraging and facilitating the

9

development of a smart grid;

10

‘‘(4) maintain public records of grants made,

11

recipients, and qualifying smart grid investments which 12 13

have received grants;

14

‘‘(5) establish procedures to provide advance

15

payment of moneys up to the full amount of the grant award; and ‘‘(6) have and exercise the discretion to deny grants for investments that do not qualify in the reasonable judgment of the Secretary.’’. SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION LOAN GUARANTEE PROGRAM.

(a) A MENDMENT.—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 DEPLOY MENT OF RENEWABLE ENERGY AND ELEC HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

TRIC POWER TRANSMISSION PROJECTS.

2 3

‘‘(a) IN G ENERAL.—Notwithstanding section 1703, the

4

Secretary may make guarantees under this section only for

5

commercial technology projects under subsection

6 7 8 9 10

(b) that will commence construction not later than September 30, 2011. ‘‘(b) C ATEGORIES.—Projects from only the following categories shall be eligible for support under this section:

11

‘‘(1) Renewable energy systems, including incre-

12 13

mental hydropower, that generate electricity. ‘‘(2) Electric power transmission systems, in-

14 15

cluding upgrading and reconductoring projects. ‘‘(3) Leading edge biofuel projects that will use technologies performing at the pilot or demonstration scale that the Secretary determines are likely to become commercial technologies and will produce transportation fuels that substantially reduce life- cycle greenhouse gas emissions compared to other transportation fuels. ‘‘(c) F ACTORS R ELATING

TO

E LE C TRIC P OW ER

T RANSMISSION S YSTEMS.—In determining to make guarantees to projects described in subsection (b)(2), the Secretary shall consider the following factors: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(1) The viability of the project without guar-

2 3

antees.

4

‘‘(2) The availability of other Federal and State

5 6

incentives. ‘‘(3) The importance of the project in meeting

7 8

reliability needs.

9 10

‘‘(4) The effect of the project in meeting a State or region’s environment (including climate change) and

11

energy goals. 12 13

‘‘(d) W AGE R ATE R EQUIREMENTS.—The Secretary

14

shall require that each recipient of support under this section

15

provide reasonable assurance that all laborers and mechanics employed in the performance of the project for which the assistance is provided, including those employed by contractors or subcontractors, will be paid wages at rates not less than those prevailing on similar work in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code (commonly referred to as the ‘Davis-Bacon Act’). ‘‘(e) L IMITATION .—Funding under this section for projects described in subsection (b)(3) shall not exceed

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2

1 2 3 4

$500,000,000. ‘‘(f) S UNSET.—The authority to enter into guarantees under this section shall expire on September 30, 2011.’’.

5 6

(b) T ABLE

OF

C ONTENTS A MENDMENT.—The table of

7

contents for the Energy Policy Act of 2005 is amended by

8

inserting after the item relating to section 1704 the following

9

new item:

10 11

‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and electric power transmission projects.’’. SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM

12 13

AMENDMENTS.

(a) INCOME LEVEL.—Section 412(7) of the Energy

14 15

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) A SSISTANCE LEVEL P ER D WELLING U NIT.— Section 415(c)(1) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended by striking ‘‘$2,500’’ and inserting ‘‘$5,000’’. (c) E FFECTIVE U SE 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, HR 1 PP

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1

2

2

in the Secretary’s view, such use of funds would increase

3

the effectiveness of the program.

4

SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION

5

STUDY.

6 7 8

In completing the 2009 National Electric Transmission Congestion Study, the Secretary of Energy shall include— (1) an analysis of the significant potential sources

9 10 11

of renewable energy that are constrained in accessing appropriate market areas by lack of adequate

12

transmission capacity; 13

(2) an analysis of the reasons for failure to de-

14 15

velop 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;

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2

1

(B) assumptions and projections regarding

2 3

the location and type of projected new generation

4

capacity; and

5

(C) assumptions and projections regarding

6 7

projected deployment of distributed generation

8

infrastructure.

9 10 11

SEC. 7006. ADDITIONAL STATE ENERGY GRANTS.

(a) IN G ENERAL.—Amounts appropriated in paragraph (6) under the heading ‘‘Department of Energy— Energy

12 13

Programs—Energy Efficiency and Renewable Energy’’ in

14

title V of division A of this Act shall be available to the

15

Secretary of Energy for making additional grants under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.). The Secretary shall make grants under this section in excess of the base allocation established for a State under regulations issued pursuant to the authorization provided in section 365(f) of such Act only if the governor of the recipient State notifies the Secretary of Energy that the governor will seek, to the extent of his or her authority, to ensure that each of the following will occur: (1) The applicable State regulatory authority will implement the following regulatory policies for each HR 1 PP

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2

1 2

electric and gas utility with respect to which the State

3

regulatory authority has ratemaking authority:

4

(A) Policies that ensure that a utility’s re-

5

covery of prudent fixed costs of service is timely

6 7

and independent of its retail sales, without in the

8

process shifting prudent costs from variable to

9

fixed charges. This cost shifting constraint shall

10

not apply to rate designs adopted prior to the date

11

of enactment of this Act. 12

(B) Cost recovery for prudent investments

13

by utilities in energy efficiency.

14 15

(C) An earnings opportunity for utilities associated with cost-effective energy efficiency savings. (2) The State, or the applicable units of local government that have authority to adopt building codes, will implement the following: (A) A building energy code (or codes) for residential buildings that meets or exceeds the most re c e ntly

p ub lis hed

International

Energy

Conservation Code, or achieves equivalent or greater energy savings.

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2

1 2

(B) A building energy code (or codes) for

3

commercial buildings throughout the State that

4

meets or exceeds the ANSI/ASHRAE/IESNA

5

Standard 90.1–2007, or achieves equivalent or

6

greater energy savings.

7 8

(C) A plan for the jurisdiction achieving

9

compliance with the building energy code or

10

codes described in subparagraphs (A) and (B)

11

within 8 years of the date of enactment of this Act 12

in at least 90 percent of new and renovated

13 14

residential and commercial building space. Such

15

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—

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2

1

(i) by the State; or

2 3

(ii) through rates under the oversight of

4

the applicable regulatory authority, to

the

5

extent applicable; 6

(B) the expansion of existing programs,

7 8

approved by the State or the appropriate regu-

9

latory authority, to support renewable energy

10

projects and deployment activities, including

11

programs operated by entities which have the

12

authority and capability to manage and distribute

13 14

grants, loans, performance incentives, and other

15

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) S TATE M ATCH .—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) E QUIPMENT AND M ATERIALS FOR E NERGY E FFIHR 1 PP

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2 CIENCY

M EASURES.—No limitation on the percentage of

funding that may be used for the purchase and installation of equipment and materials for energy efficiency measures under grants provided under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance provided under this section. SEC. 7007. INAPPLICABILITY OF LIMITATION.

The limitations in section 399A(f)(2), (3), and (4) of the Energy

Policy

and

Conservation

Act

(42

U.S.C.

6371h–1(f)(2), (3), and (4)) shall not apply to grants funded with appropriations provided by this Act, except that such grant funds shall be available for not more than an amount equal to 80 percent of the costs of the project for which the grant is provided. SECTION 1. SHORT TITLE.

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

1

SEC. 2. TABLE OF CONTENTS.

2The 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

OF DEFENSE TITLE IV—ENERGY AND WATER DEVELOPMENT TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT TITLE VI—DEPARTMENT OF HOMELAND SECURITY TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES TITLE VIII—DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES TITLE IX—LEGISLATIVE BRANCH TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS TITLE XII—TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES TITLE XIII—HEALTH INFORMATION TECHNOLOGY TITLE XIV—STATE FISCAL STABILIZATION TITLE XV—RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY INDEPENDENT ADVISORY PANEL TITLE XVI—GENERAL PROVISIONS—THIS ACT

2 3 4 5 6 7 8 9

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

10

TITLE I—TAX PROVISIONS TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES TITLE III—HEALTH INSURANCE ASSISTANCE TITLE IV—HEALTH INFORMATION TECHNOLOGY TITLE V—STATE FISCAL RELIEF

11 12 13 14 15

3

SEC. 3. REFERENCES.

4Except as expressly provided otherwise, any reference 5 to ‘‘this Act’’ contained in any division of this Act shall 6 be treated as referring only to the provisions of that divi 7 sion.

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

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

AGENCIES

2 3

DEPARTMENT OF AGRICULTURE

4

O FFICE OF THE S ECRETARY

5

(INCLUDING TRANSFERS OF FUNDS)

6

For an additional amount for the ‘‘Office of the Sec7 8 9

retary’’, $200,000,000, to remain available until September 30, 2010: Provided, That the Secretary may

10

transfer these funds to agencies of the Department, other

11

than the Forest Service, for necessary replacement,

12

modernization, or upgrades of laboratories or other

13 14 15

facilities to improve workplace safety and mission-area efficiencies as deemed appropriate by the Secretary: Provided further, that the Secretary shall provide to the Committees on Appropriations of the House and Senate a plan on the allocation of these funds no later than 60 days after the date of enactment of this Act. OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Office of Inspector General’’, $5,000,000, to remain available until September 30, 2011, for oversight and audit of programs, grants, and activities funded under this title and an additional $17,500,000 for such purposes, to remain available until September 30, 2011. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

C OOPERATIVE S TATE R ESEARCH , E DUCATION AND

3

E CONOMIC S ERVICE

4 5

RESEARCH AND EDUCATION ACTIVITIES

For an additional amount for competitive grants au-

6 7 8

thorized at 7 U.S.C. 450(i)(b), $50,000,000, to remain available until September 30, 2010. FARM S ERVICE A GENCY

9 10

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM

11 12

ACCOUNT

For an additional amount for gross obligations for the

13

principal amount of direct and guaranteed farm ownership 14 15

(7 U.S.C 1922 et seq.) and operating (7 U.S.C. 1941 et seq.) loans, to be available from funds in the Agricultural Credit Insurance Fund Program Account, as follows: farm ownership loans, $400,000,000 of which $100,000,000 shall be for unsubsidized guaranteed loans and $300,000,000 shall be for direct loans; and operating loans, $250,000,000 of which $50,000,000 shall be for unsubsidized guaranteed loans and $200,000,000 shall be for direct loans. For an additional amount for the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of HR 1 PP

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2

1 2

1974, to remain available until September 30, 2010, as fol-

3

lows: farm ownership loans, $17,530,000 of which

4

$330,000 shall be for unsubsidized guaranteed loans and

5

$17,200,000 shall be for direct loans; and operating 6 7

loans, $24,900,000 of which $1,300,000 shall be for

8

unsubsidized guaranteed loans and $23,600,000 shall be

9

for direct loans.

10 11

Funds appropriated by this Act to the Agricultural Credit Insurance Fund Program Account for farm owner-

12 13 14 15

ship, operating, and emergency direct loans and unsubsidized guaranteed loans may be transferred among these programs: Provided, That the Committees on Appropriations of both Houses of Congress are notified at least 15 days in advance of any transfer. N ATURAL R ESOURCES C ONSERVATION S ERVICE WATERSHED AND FLOOD PREVENTION OPERATIONS

For an

additional amount for ‘‘Watershed and Flood Prevention Operations’’, $275,000,000, to remain available until September 30, 2010.

WATERSHED REHABILITATION PROGRAM

For an additional amount for the ‘‘Watershed Rehabilitation Program’’, $65,000,000, to remain available HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

until September 30, 2010.

3 4 5

RURAL DEVELOPMENT SALARIES AND EXPENSES

For an additional amount for ‘‘Rural Development, Salaries and Expenses’’, $80,000,000, to remain available

6 7

until September 30, 2010. R URAL H OUSING S ERVICE

8

RURAL HOUSING INSURANCE PROGRAM ACCOUNT

9 10

For an additional amount for gross obligations for the

11

principal amount of direct and guaranteed loans as author-

12

ized by title V of the Housing Act of 1949, to be available

13 14 15

from funds in the Rural Housing Insurance Fund Program Account, as follows: $1,000,000,000 for section 502 direct loans; and $10,472,000,000 for section 502 unsubsidized guaranteed loans. For an additional amount for the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, to remain available until September 30, 2010, as follows: $67,000,000 for section 502 direct loans; and $133,000,000 for section 502 unsubsidized guaranteed loans. RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

For an

additional amount for the cost of direct loans, loan HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

guarantees, and grants for rural community facilities

3

programs as authorized by section 306 and described in

4

section 381E(d)(1) of the Consolidated Farm and Rural

5

Development Act, $127,000,000, to remain available until 6 7

September 30, 2010. R URAL B USINESS — COOPERATIVE S ERVICE

8 9

RURAL BUSINESS PROGRAM ACCOUNT

10

For an additional amount for the cost of guaranteed

11

loans and grants as authorized by sections 310B(a)(2)(A)

12

and 310B(c) of the Consolidated Farm and Rural Develop-

13 14 15

ment Act (7 U.S.C. 1932), $150,000,000, to remain available until September 30, 2010. BIOREFINERY ASSISTANCE

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

For an additional amount for the cost of loan guarantees and grants, as authorized by section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107), $50,000,000, to remain available until September 30, 2010: Provided, That these funds may be used by HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

tribes, local units of government, and schools in rural areas, as defined in section 343(a) of the

5

Consolidated Farm and Rural Development Act (7 6 7

U.S.C. 1991(a)). R URAL U TILITIES S ERVICE

8 9 10 11

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

For an

additional amount for the cost of direct loans, loan guarantees, and grants for the rural water, waste water,

12 13

waste disposal, and solid waste management programs

14

authorized by sections 306, 306A, 306C, 306D, and 310B

15

and described in sections 306C(a)(2), 306D, and 381E(d)(2) of the Consolidated Farm and Rural Development Act, $1,375,000,000, to remain available until September 30, 2010. DISTANCE LEARNING , TELEMEDICINE , AND BROADBAND PROGRAM ACCOUNT

For an additional amount for direct loans and grants for distance learning and telemedicine services in rural areas, as authorized by 7 U.S.C. 950aaa, et seq., $100,000,000, to remain available until September 30, 2010. FOOD AND N UTRITION S ERVICE HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

CHILD NUTRITION PROGRAMS

3

For additional amount for the Richard B. Russell Na-

4 5

tional School Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the Child Nutrition Act of 1966 (42 U.S.C.

6

1771 et. seq.), except sections 17 and 21, $100,000,000, to 7 8 9

remain available until September 30, 2010, to carry out a grant program for National School Lunch Program

10

equipment assistance: Provided, That such funds shall be

11

provided to States administering a school lunch program

12

through a formula based on the ratio that the total number

13 14 15

of lunches served in the Program during the second preceding fiscal year bears to the total number of such lunches served in all States in such second preceding fiscal year: Provided further, That of such funds, the Secretary may approve the reserve by States of up to $20,000,000 for necessary enhancements to the State Distributing Agency’s commodity ordering and management system to achieve compatibility with the Department’s web-based supply chain management system: Provided further, That of the funds remaining, the State shall provide competitive grants to school food authorities based upon the need for equipment assistance in participating schools with priority given to schools in which not less than 50 percent of the HR 1 PP

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2

1 2

students are eligible for free or reduced price meals under

3

the Richard B. Russell National School Lunch Act and

4

priority given to schools purchasing equipment for the

5

purpose of offering more healthful foods and meals, in 6 7 8

accordance with standards established by the Secretary. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN ,

9 INFANTS , AND CHILDREN (WIC)

For an additional amount for

10 11

the special supplemental nutrition program as authorized

12

by section 17 of the Child Nutrition Act of 1966 (42 U.S.C.

13

1786), to remain available until September 30, 2010,

14

$500,000,000, of which $380,000,000 shall be placed in

15

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

For an additional amount for the ‘‘Commodity Assist-

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1

2

2

ance Program’’, to remain available until September 30,

3

2010, $150,000,000, which the Secretary shall use to pur-

4

chase a variety of commodities as authorized by the Com-

5

modity Credit Corporation or under section 32 of the Act 6 7

entitled ‘‘An Act to amend the Agricultural Adjustment Act,

8

and for other purposes’’, approved August 24, 1935 (7

9

U.S.C. 612c): Provided, That the Secretary shall distribute

10 11

the commodities to States for distribution in accordance with section 214 of the Emergency Food Assistance Act of

12 13 14 15

1983 (Public Law 98–8; 7 U.S.C. 612c note): Provided further, That of the funds made available, the Secretary may use up to $50,000,000 for costs associated with the distribution of commodities. GENERAL PROVISIONS—THIS TITLE S EC . 101. Funds appropriated by this Act and made available to the United States Department of Agriculture for broadband direct loans and loan guarantees, as authorized under title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) and for grants, shall be available for broadband infrastructure in any area of the United States notwithstanding title VI of the Rural Electrification Act of 1936: Provided, That at least 75 percent of the area served by the projects receiving funds from such grants, loans, or HR 1 PP

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2

1 2

loan guarantees is in a rural area without sufficient access

3

to high speed broadband service to facilitate rural

4

economic development, as determined by the Secretary:

5

Provided further, That priority for awarding funds made 6 7

available under this paragraph shall be given to projects

8

that provide service to the highest proportion of rural

9

residents that do not have sufficient access to broadband

10 11

service: Provided further, That priority for awarding such funds shall be given to project applications that

12 13 14 15

demonstrate that, if the application is approved, all project elements will be fully funded: Provided further, That priority for awarding such funds shall be given to activities that can commence promptly following approval: Provided further, That the Department shall submit a report on planned spending and actual obligations describing the use of these funds not later than 90 days after the date of enactment of this Act, and quarterly thereafter until all funds are obligated, to the Committees on Appropriations of the House of Representatives and the Senate. S EC . 102. N UTRITION FOR E CONOMIC R ECOVERY. (a) M AXIMUM B ENEFIT INCREASES .— (1) E

CONOMIC RECOVERY 1 -MONTH BEGINNING

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1

2

2

STIMULUS PAYMENT .—For

3

not less than 25 days after the date of enactment of

4

the first month that begins

this Act, the Secretary of Agriculture (referred to in

5

this section as the ‘‘Secretary’’) shall increase the 6 7

cost of the thrifty food plan for purposes of section

8

8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.

9

2017(a)) by 85 percent.

10 11

(2) R

EMAINDER OF FISCAL YEAR 2009 .—Beginning

with the second month that begins not less than 25

12 13 14 15

days after the date of enactment of this Act, and for each subsequent month through the month ending September 30, 2009, the Secretary shall increase the cost of the thrifty food plan for purposes of section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a)) by 12 percent. (3) S

UBSEQUENT INCREASE FOR FISCAL YEAR

2010 .—Beginning

on October 1, 2009, and for each

subsequent month through the month ending September 30, 2010, the Secretary shall increase the cost of the thrifty food plan for purposes of section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a)) by an amount equal to 12 percent, less the percentage by which the Secretary determines the thrifty food HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

plan would otherwise be adjusted on October 1, 2009,

3

as required under section 3(u) of that Act (7 U.S.C.

4

2012(u)), if the percentage is less than 12 percent.

5

(4) S

UBSEQUENT INCREASE FOR FISCAL YEAR

6 7

2011 .—Beginning

on October 1, 2010, and for each

8

subsequent month through the month ending Sep-

9

tember 30, 2011, the Secretary shall increase the cost

10

of the thrifty food plan for purposes of section 8(a) of

11

the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a))

12 13 14 15

by an amount equal to 12 percent, less the sum of the percentages by which the Secretary determines the thrifty food plan would otherwise be adjusted on October 1, 2009 and October 1, 2010, as required under section 3(u) of that Act (7 U.S.C. 2012(u)), if the sum of such percentages is less than 12 percent. (5) T ERMINATION OF EFFECTIVENESS .—Effective beginning October 1, 2011, the authority provided by this subsection terminates and has no effect. (b) A

DMINISTRATION .—In

carrying out this section, the

Secretary shall— (1) consider the benefit increases described in subsection (a) to be a mass change; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) require a simple process for States to notify

2 3

households of the changes in benefits;

4

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

5

Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to 6 7

apply to any errors in the implementation of this sec-

8

tion, without regard to the 120-day limit described in

9

section 16(c)(3)(A) of that Act;

10 11

(4) disregard the additional amount of benefits that a household receives as a result of this section in

12 13 14 15

determining the amount of overissuances under section 13 of the Food and Nutrition Act of 2008 (7 U.S.C. 2022) and the hours of participation in a program under section 6(d), 20, or 26 of that Act (7 U.S.C. 2015(d), 2029, 2035); and (5) set the tolerance level for excluding small errors for the purposes of section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)) at $50 for the period that the benefit increase under subsection (a) is in effect. (c) ADMINISTRATIVE E XPENSES .— (1) IN GENERAL.—For the costs of State administrative expenses associated with carrying out this section and administering the supplemental nutrition HR 1 PP

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2

1 2

assistance program established under the Food and

3

Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred

4

to in this section as the ‘‘supplemental nutrition

5

assistance program’’) during a period of rising 6 7

program caseloads, and for the expenses of the Sec-

8

retary under paragraph (6), the Secretary shall make

9

available $150,000,000 for each of fiscal years 2009

10

and 2010, to remain available through September 30,

11

2010.

12

(2) T

13 14 15

IMING 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) A LLOCATION OF FUNDS .—Except as provided in paragraph (6), funds described in paragraph (1) shall be made available to States that meet the requirements of paragraph (5) as grants to State agencies for each fiscal year as follows: (A) 75 percent of the amounts available for each fiscal year shall be allocated to States based on the share of each State of households that participate in the supplemental nutrition assistance program as reported to the Department of AgriHR 1 PP

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2

1 2

culture for the most recent 12-month period for

3

which data are available, adjusted by the Sec-

4

retary (in the discretion of the Secretary) for

5

participation in disaster programs under section 6

5(h) of the Food and Nutrition Act of 2008 (7

7

U.S.C. 2014(h)); and

8 9

(B) 25 percent of the amounts available for

10

each fiscal year shall be allocated to States based

11

on the increase in the number of households that

12

participate in the supplemental nutrition assist-

13

ance program as reported to the Department of

14

Agriculture over the most recent 12-month period

15

for which data are available, adjusted by the Secretary (in the discretion of the Secretary) for participation in disaster programs under section 5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)). (4) R

EDISTRIBUTION .—The

Secretary shall de-

termine an appropriate procedure for redistribution of amounts allocated to States that would otherwise be provided allocations under paragraph (3) for a fiscal year but that do not meet the requirements of paragraph (5). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

(5) M AINTENANCE OF EFFORT .—

3

(A) D

4

EFINITION OF SPECIFIED STATE AD -

MINISTRATIVE COSTS .—In

5

this paragraph:

(i) I N GENERAL.—The term ‘‘specified

6

State administrative costs’’ includes all

7 8

State administrative costs under the supple-

9

mental nutrition assistance program.

10

(ii) E XCLUSIONS .—The term ‘‘specified

11

State administrative costs’’ does not in-

12

clude— 13

(I) the costs of employment and

14

training programs under section 6(d),

15

20, or 26 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d), 2029, 2035); (II) the costs of nutrition education under section 11(f) of that Act (7 U.S.C. 2020(f)); and (III) any other costs the Secretary determines should be excluded. (B) R

EQUIREMENT .—The

Secretary shall

make funds under this subsection available only to States that, as determined by the Secretary, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

maintain State expenditures on specified State

3

administrative costs.

4

(6) M

ONITORING AND EVALUATION .—Of

the

5

amounts made available under paragraph (1), the 6 7

Secretary may retain up to $5,000,000 for the costs

8

incurred by the Secretary in monitoring the integrity

9

and evaluating the effects of the payments made

10 11

under this section. (d) F OOD D ISTRIBUTION PROGRAM ON INDIAN R ES -

12 13 14 15

ERVATIONS .—For

the costs of administrative expenses asso-

ciated with the food distribution program on Indian reservations established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)), the Secretary shall make available $5,000,000, to remain available until September 30, 2010. (e) C ONSOLIDATED B LOCK G RANTS FOR PUERTO R ICO AND A MERICAN S AMOA.— (1) FISCAL YEAR 2009 .— (A) IN GENERAL.—For fiscal year 2009, the Secretary shall increase by 12 percent the amount available for nutrition assistance for eligible households under the consolidated block grants for the Commonwealth of Puerto Rico and HR 1 PP

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2

1 2

American Samoa under section 19 of the Food

3

and Nutrition Act of 2008 (7 U.S.C. 2028).

4

(B) A VAILABILITY OF FUNDS .—Funds made

5

available under subparagraph (A) shall remain 6

available through September 30, 2010.

7

(2) FISCAL YEAR 2010 .—For fiscal year 2010, the

8 9 10 11

Secretary shall increase the amount available for nutrition assistance for eligible households under the consolidated block grants for the Commonwealth of

12 13 14 15

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

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2

1 2

2028) by 12 percent, less the sum of the percentages

3

by which the Secretary determines the consolidated

4

block grants would otherwise be adjusted on October

5

1, 2009, and October 1, 2010, as required by section 6 7 8

19(a)(2)(A)(ii) of that Act (7 U.S.C. 2028(a)(2)(A)(ii)), if the sum of the percentages is less than 12 percent.

9

(f) T REATMENT OF J OBLESS W ORKERS .—

10 11

(1) R

EMAINDER OF FISCAL YEAR 2009 THROUGH

FISCAL YEAR 2011 .—Beginning

with the first month that

12

begins not less than 25 days after the date of en13 14 15

actment of this Act and for each subsequent month through September 30, 2011, eligibility for supplemental nutrition assistance program benefits shall not be limited under section 6(o)(2) of the Food and Nutrition Act of 2008 unless an individual does not comply with the requirements of a program offered by the State agency that meets the standards of subparagraphs (B) or (C) of that paragraph. (2) F ISCAL YEAR 2012 AND THEREAFTER .—Beginning on October 1, 2011, for the purposes of section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency shall disregard any period during which an individual received benefits under HR 1 PP

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2

1 2

the supplemental nutrition assistance program prior

3

to October 1, 2011.

4

(g) F UNDING .—There are appropriated to the Sec-

5

retary out of funds of the Treasury not otherwise appro6 7 8 9 10 11

priated such sums as are necessary to carry out this section. S EC . 103. A

GRICULTURAL

D ISASTER A SSISTANCE

T RANSITION . (a) F EDERAL C ROP INSURANCE A CT .—Section 531(g) of the Federal Crop Insurance Act (7 U.S.C.

12 13

1531(g)) is amended by adding at the end the following: ‘‘(7) 2008

14

TRANSITION ASSISTANCE .—

‘‘(A) IN GENERAL.—Eligible producers on a

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

commodity of the eligible producers on the

3

farm, excluding grazing land, agree to ob-

4

tain a policy or plan of insurance under

5

subtitle A (excluding a crop insurance pilot 6

program under that subtitle) for the next

7 8

insurance year for which crop insurance is

9

available to the eligible producers on the

10

farm at a level of coverage equal to 70 per-

11

cent or more of the recorded or appraised

12

average yield indemnified at 100 percent of

13

the expected market price, or an equivalent

14

coverage; and

15

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

MOUNT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

producers on the farm—

2 3

‘‘(i) in the case of each insurable com-

4

modity of the eligible producers on the farm,

5

had obtained a policy or plan of insurance 6

for the 2008 crop year at a level of coverage

7 8

not to exceed 70 percent or more of the re-

9

corded or appraised average yield indem

10

nified at 100 percent of the expected market

11

price, or an equivalent coverage; and

12

‘‘(ii) in the case of each noninsurable

13

commodity of the eligible producers on the

14

farm, had filed the required paperwork, and

15

paid the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the 2008 crop year, except that in determining yield under that program, the Secretary shall use a percentage that is 70 percent. ‘‘(C) E

QUITABLE RELIEF.—Except

as pro-

vided in subparagraph (D), eligible producers on a farm that met the requirements of paragraph (1) before the deadline described in paragraph (4)(A) and received, or are eligible to receive, a HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

disaster assistance payment under this section

3

for a production loss during the 2008 crop year

4

shall be eligible to receive an additional amount

5

equal to the greater of— 6

‘‘(i) the amount that would have been

7 8

calculated under subparagraph (B) if the el-

9

igible producers on the farm had paid the

10

appropriate fee under that subparagraph;

11

or

12

‘‘(ii) the amount that would have been

13

calculated under subparagraph (A) of sub-

14

section (b)(3) if—

15

‘‘(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) L

IMITATION .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the assistance received by a similarly situated

3

producer that had purchased the same or higher

4

level of crop insurance prior to the date of enact-

5

ment of this paragraph. 6

‘‘(E) A UTHORITY OF THE SECRETARY.—The

7 8

Secretary may provide such additional assistance

9

as the Secretary considers appropriate to

10

provide equitable treatment for eligible producers

11

on a farm that suffered production losses in the

12

2008 crop year that result in multiyear produc-

13

tion losses, as determined by the Secretary.

14

‘‘(F) L

15

ACK 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

because 1 or more farming practices,

3

which the Secretary has determined are

4

good farming practices, of the eligible

5

producers on the farm differ 6

significantly from the farming practices

7 8

used by producers of the same crop in

9

other regions of the United States; and

10

‘‘(II) are not eligible for the non-

11

insured crop disaster assistance pro-

12

gram established by section 196 of the

13

Federal Agriculture Improvement and

14

Reform Act of 1996 (7 U.S.C. 7333).’’.

15

(b) T RADE A CT 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— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(i) pay the appropriate fee described

2 3

in paragraph (4)(A) not later than 90 days

4

after the date of enactment of this para-

5

graph; and 6

‘‘(ii)(I) in the case of each insurable

7 8

commodity of the eligible producers on the

9

farm, excluding grazing land, agree to ob-

10

tain a policy or plan of insurance under the

11

Federal Crop Insurance Act (7 U.S.C. 1501

12

et seq.) (excluding a crop insurance pilot

13

program under that Act) for the next insur-

14

ance year for which crop insurance is avail-

15

able 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 nonHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

insured crop assistance program for the

3

2009 crop year.

4

‘‘(B) A

MOUNT OF ASSISTANCE .—Eligible

5

producers on a farm that meet the requirements 6

of subparagraph (A) shall be eligible to receive

7 8

assistance under this section as if the eligible

9

producers on the farm—

10

‘‘(i) in the case of each insurable com-

11

modity of the eligible producers on the farm,

12

had obtained a policy or plan of insurance

13

for the 2008 crop year at a level of coverage

14

not to exceed 70 percent or more of the re-

15

corded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage; and ‘‘(ii) in the case of each noninsurable commodity of the eligible producers on the farm, had filed the required paperwork, and paid the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the 2008 crop year, except that in determining yield under that program, the Secretary shall use a HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

percentage that is 70 percent.

3

‘‘(C) E

4

QUITABLE RELIEF.—Except

as pro-

vided in subparagraph (D), eligible producers on

5

a farm that met the requirements of paragraph 6

(1) before the deadline described in paragraph

7 8

(4)(A) and received, or are eligible to receive, a

9

disaster assistance payment under this section

10

for a production loss during the 2008 crop year

11

shall be eligible to receive an additional amount

12

equal to the greater of—

13

‘‘(i) the amount that would have been

14

calculated under subparagraph (B) if the el-

15

igible 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

percent’.

2 3

‘‘(D) L

4

IMITATION .—For

amounts made

available under this paragraph, the Secretary

5

may make such adjustments as are necessary to 6

ensure that no producer receives a payment

7 8

under this paragraph for an amount in excess of

9

the assistance received by a similarly situated

10

producer that had purchased the same or higher

11

level of crop insurance prior to the date of enact-

12

ment of this paragraph.

13

‘‘(E) A UTHORITY OF THE SECRETARY.—The

14

Secretary may provide such additional assistance

15

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) L

ACK 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; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

and

2 3

‘‘(ii) as determined by the Secretary—

4

‘‘(I)(aa) except as provided in item

5

(bb), lack access to a policy or plan of 6

insurance under subtitle A; or ‘‘(bb) do

7 8

not qualify for a written agreement

9

because 1 or more farming practices,

10

which the Secretary has determined are

11

good farming practices, of the eligible

12

producers on the farm differ

13

significantly from the farming practices

14

used by producers of the same crop in

15

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) E MERGENCY L OANS .— (1) I N GENERAL.—For the principal amount of direct emergency loans under section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961), $200,000,000. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(2) D IRECT EMERGENCY LOANS .—For the cost of

3

direct emergency loans, including the cost of modi-

4

fying loans, as defined in section 502 of the Congres-

5

sional Budget Act of 1974 (2 U.S.C. 661a), 6 7 8 9

$28,440,000, to remain available until September 30, 2010. (d) 2008 A QUACULTURE A SSISTANCE.—

10

(1) D EFINITIONS .—In this subsection:

11

(A) E

12

LIGIBLE AQUACULTURE PRODUCER .—

The term ‘‘eligible aquaculture producer’’ means

13

an aquaculture producer that during the 2008

14

calendar year, as determined by the Secretary—

15

(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) S

ECRETARY.—The

term ‘‘Secretary’’

means the Secretary of Agriculture. (2) G RANT PROGRAM .— (A) IN GENERAL.—Of the funds of the ComHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

modity Credit Corporation, the Secretary shall

3

use not more than $50,000,000, to remain avail-

4

able until September 30, 2010, to carry out a

5

program of grants to States to assist eligible 6

aquaculture producers for losses associated with

7 8

high feed input costs during the 2008 calendar

9

year.

10

(B) N OTIFICATION .—Not later than 60 days

11

after the date of enactment of this Act, the Sec-

12

retary shall notify the State department of agri-

13

culture (or similar entity) in each State of the

14

availability of funds to assist eligible aquaculture

15

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) I N 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) T IMING .—Not later than 120 days HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

after the date of enactment of this Act, the

3

Secretary shall make grants to States to

4

provide assistance under this subsection.

5

(D) R

EQUIREMENTS .—The

Secretary shall

6

make grants under this subsection only to States

7 8

that demonstrate to the satisfaction of the Sec-

9

retary that the State will—

10

(i) use grant funds to assist

11

eligible aquaculture producers;

12

(ii) provide assistance to eligible aqua-

13

culture producers not later than 60 days

14

after the date on which the State receives

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

determined the levels of assistance to

3

eligible aquaculture producers.

4

(3) R

EDUCTION IN PAYMENTS .—An

eligible

5

aquaculture producer that receives assistance under 6 7

this subsection shall not be eligible to receive any

8

other assistance under the supplemental agricultural

9

disaster assistance program established under section

10 11

531 of the Federal Crop Insurance Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974

12 13 14

(19 U.S.C. 2497) for any losses in 2008 relating to the same species of aquaculture. (4) R

15

EPORT 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— 1) describes in detail the manner in which this subsection has been carried out; and 2) includes the information reported to the Secretary under paragraph (2)(D)(iii). (E) A

DMINISTRATION .—There

is hereby appropriated

$54,000,000 to carry out this section. S EC . 104. (a) Hereafter, in this section, the term ‘‘nonambulatory disabled cattle’’ means cattle, other than cattle HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

that are less than 5 months old or weigh less than 500

3

pounds, subject to inspection under section 3(b) of the Fed-

4

eral Meat Inspection Act (21 U.S.C. 603(b)) that cannot

5

rise from a recumbent position or walk, including cattle 6 7

with a broken appendage, severed tendon or ligament,

8

nerve paralysis, fractured vertebral column, or a

9

metabolic condition.

10 11

(b) Hereafter, none of the funds made available under this or any other Act may be used to pay the salaries or

12 13 14 15

expenses of any personnel of the Food Safety and Inspection Service to pass through inspection any nonambulatory disabled cattle for use as human food, regardless of the reason for the nonambulatory status of the cattle or the time at which the cattle became nonambulatory. S EC . 105. S

TATE AND

L OCAL G OVERNMENTS . Section

1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is amended by inserting ‘‘(other than the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of this Act)’’ before the period at the end. S EC . 106. Except for title I of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246), Commodity HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Credit Corporation funds provided in that Act shall be

3

available for administrative expenses, including technical

4

assistance, without regard to the limitation in 15 U.S.C.

5

714i. 6 7

TITLE II—COMMERCE, JUSTICE, SCIENCE, AND

8

RELATED AGENCIES DEPARTMENT OF COMMERCE

9

B UREAU OF INDUSTRY AND S ECURITY

10

OPERATIONS AND ADMINISTRATION

11

For an additional amount for ‘‘Operations and Ad-

12

ministration’’, $20,000,000, to remain available until Sep13 14

tember 30, 2010. E CONOMIC D EVELOPMENT A DMINISTRATION

15

ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For an additional amount for ‘‘Economic Development Assistance Programs’’, $150,000,000, to remain available until September 30, 2010: Provided, That $50,000,000 shall be for economic adjustment assistance as authorized by section 209 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. 3149): Provided further, That in allocating the funds provided in the previous proviso, the Secretary of Commerce shall give priority consideration to areas of the Nation that have experienced sudden and severe economic HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

dislocation and job loss due to corporate restructuring.

3 4 5 6 7 8 9 10 11 12 13 14 15

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2

1 2

B UREAU OF THE C ENSUS

3

PERIODIC CENSUSES AND PROGRAMS

4 5

For an additional amount for ‘‘Periodic Censuses and Programs’’, $1,000,000,000, to remain available until Sep-

6 7 8 9 10 11 12

tember 30, 2010. N ATIONAL T ELECOMMUNICATIONS AND INFORMATION A DMINISTRATION BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

For an amount for ‘‘Broadband Technology

Opportunities Program’’, $7,000,000,000, to remain available until September 30, 2010: Provided, That of the

13 14 15

funds provided under this heading, $6,650,000,000 shall be expended pursuant to section 201 of this Act, of which: not less than $200,000,000 shall be available for competitive grants for expanding public computer center capacity, including at community colleges and public libraries; not less than $250,000,000 shall be available for competitive grants for innovative programs to encourage sustainable adoption of broadband service; and $10,000,000 shall be transferred to ‘‘Department of Commerce, Office of Inspector General’’ for the purposes of audits and oversight of funds provided under this heading and such funds shall remain available until expended: Provided further, That 50 percent of the funds HR 1 PP

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1

2

2

provided in the previous proviso shall be used to support

3

projects in rural communities, which in part may be

4

transferred to the Department of Agriculture for adminis-

5

tration through the Rural Utilities Service if deemed nec6 7

essary and appropriate by the Secretary of Commerce, in

8

consultation with the Secretary of Agriculture, and only if

9

the Committees on Appropriations of the House and the

10 11

Senate are notified not less than 15 days in advance of the transfer of such funds: Provided further, That of the funds

12 13 14 15

provided under this heading, up to $350,000,000 may be expended pursuant to Public Law 110–385 (47 U.S.C. 1301 note) and for the purposes of developing and maintaining a broadband inventory map pursuant to section 201 of this Act: Provided further, That of the funds provided under this heading, amounts deemed necessary and appropriate by the Secretary of Commerce, in consultation with the Federal Communications Commission (FCC), may be transferred to the FCC for the purposes of developing a national broadband plan or for carrying out any other FCC responsibilities pursuant to section 201 of this Act, and only if the Committees on Appropriations of the House and the Senate are notified not less than 15 days in advance of the transfer of such funds: Provided further, HR 1 PP

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2

1 2

That not more than 3 percent of funds provided under this

3

heading may be used for administrative costs, and this

4

limitation shall apply to funds which may be transferred to

5

the Department of Agriculture and the FCC. 6 7

DIGITAL -TO -ANALOG CONVERTER BOX PROGRAM

For an

8

amount for ‘‘Digital-to-Analog Converter Box Program’’,

9

$650,000,000, for additional coupons and related activities

10

under the program implemented under section 3005 of the

11

Digital Television Transition and Public Safety Act of

12 13 14 15

2005, to remain available until September 30, 2010: Provided, That of the amounts provided under this heading, $90,000,000 may be for education and outreach, including grants to organizations for programs to educate vulnerable populations, including senior citizens, minority communities, people with disabilities, low-income individuals, and people living in rural areas, about the transition and to provide one-on-one assistance to vulnerable populations, including help with converter box installation: Provided further, That the amounts provided in the previous proviso may be transferred to the Federal Communications Commission (Commission) if deemed necessary and appropriate by the Secretary of Commerce in consultation with the Commission, and only if the HR 1 PP

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2

1 2

Committees on Appropriations of the House and the

3

Senate are notified not less than 5 days in advance of

4

transfer of such funds: Provided further, That $2,000,000

5

of funds provided under this heading shall be transferred 6 7

to ‘‘Department of Commerce, Office of Inspector

8

General’’ for audits and oversight of funds provided under

9

this heading.

10

N ATIONAL INSTITUTE OF S TANDARDS AND T ECHNOLOGY

11 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

For an

12 13

additional amount for ‘‘Scientific and Technical Research

14

and Services’’, $168,000,000, to remain available until

15

September 30, 2010. CONSTRUCTION OF RESEARCH FACILITIES

For an additional amount for ‘‘Construction of Research Facilities’’, $307,000,000, to remain available until September 30, 2010. N ATIONAL O CEANIC AND A TMOSPHERIC A DMINISTRATION OPERATIONS , RESEARCH , AND FACILITIES

For an additional

amount for ‘‘Operations, Research, and Facilities’’, $377,000,000, to remain available until September 30, 2010. PROCUREMENT , ACQUISITION AND CONSTRUCTION

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

For an

2

1 2

additional amount for ‘‘Procurement, Acquisition and

3

Construction’’, $645,000,000, to remain available until

4

September 30, 2010.

5

O FFICE OF INSPECTOR G ENERAL 6 7

For an additional amount for ‘‘Office of Inspector

8

General’’, $6,000,000, to remain available until September

9

30, 2012.

10

DEPARTMENT OF JUSTICE

11

G ENERAL A DMINISTRATION

12 13

TACTICAL LAW ENFORCEMENT WIRELESS COMMUNICATIONS

14

an additional amount for ‘‘Tactical Law Enforcement

15

For

Wireless Communications’’, $100,000,000 for the costs of developing and implementing a nationwide Integrated Wireless network supporting Federal law enforcement, to remain available until September 30, 2010. D ETENTION T RUSTEE For an additional amount for ‘‘Detention Trustee’’, $100,000,000, to remain available until September 30, 2010. O FFICE OF INSPECTOR G ENERAL For an additional amount for ‘‘Office of Inspector General’’, $2,000,000, to remain available until September 30, 2011. HR 1 PP

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2

1

U NITED S TATES M ARSHALS S ERVICE

2 3

SALARIES AND EXPENSES

4

For an additional amount for ‘‘Salaries and Ex-

5

penses’’, $50,000,000, to remain available until September

6 7

30, 2010. CONSTRUCTION

8 9

For an additional amount for ‘‘Construction’’,

10

$100,000,000, to remain available until September

11

30, 2010.

12

FEDERAL B UREAU OF INVESTIGATION

13 14

SALARIES AND EXPENSES

15

For an additional amount for ‘‘Salaries and Expenses’’, $75,000,000, to remain available until September 30, 2010. CONSTRUCTION

For an additional amount for ‘‘Construction’’, $300,000,000, to remain available until September 30, 2010. FEDERAL PRISON S YSTEM BUILDINGS AND FACILITIES

For an additional amount for ‘‘Federal Prison System, Buildings and Facilities’’, $800,000,000, to remain available until September 30, 2010. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

S TATE AND L OCAL L AW E NFORCEMENT A CTIVITIES O FFICE

3

ON

4

VIOLENCE A GAINST W OMEN

VIOLENCE AGAINST WOMEN PREVENTION AND

5 PROSECUTION PROGRAMS

6 7 8 9

For an additional amount for ‘‘Violence Against Women Prevention and Prosecution Programs’’, $300,000,000 for grants to combat violence against

10

women, as authorized by part T of the Omnibus Crime

11

Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et

12

seq.): Provided, That, $50,000,000 shall be transitional

13 14 15

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). O FFICE OF J USTICE PROGRAMS STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an

additional amount for ‘‘State and Local Law Enforcement Assistance’’, $1,200,000,000 for the Edward Byrne Memorial Justice Assistance Grant program as authorized by subpart 1 of part E of title I of the Omnibus Crime Control and Safe Street Act of 1968 (‘‘1968 Act’’), (except that section 1001(c), and the special rules for Puerto Rico under section 505(g), of the 1968 Act, shall not apply for HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

purposes of this Act), to remain available until September

3

30, 2010.

4

For an additional amount for ‘‘State and Local Law

5

Enforcement Assistance’’, $300,000,000 for competitive 6 7

grants to improve the functioning of the criminal justice

8

system, to assist victims of crime (other than compensa-

9

tion), and youth mentoring grants, to remain available

10 11

until September 30, 2010. For an additional amount for ‘‘State and Local Law

12 13 14 15

Enforcement Assistance’’, $90,000,000, to remain available until September 30, 2010, for competitive grants to provide assistance and equipment to local law enforcement along the Southern border and in High-Intensity Drug Traf ficking Areas to combat criminal narcotics activity stemming from the Southern border, of which $10,000,000 shall be transferred to ‘‘Bureau of Alcohol, Tobacco, Firearms and Explosives, Salaries and Expenses’’ for the ATF Project Gunrunner. For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $300,000,000, to remain available until September 30, 2010, for assistance to Indian tribes, notwithstanding Public Law 108–199, division B, title I, section 112(a)(1) (118 Stat. 62), of which— HR 1 PP

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1

(1) $250,000,000 shall be available for grants

2 3 4

under section 20109 of subtitle A of title II of the Violent Crime Control and Law Enforcement Act of 1994

5

(Public Law 103–322); 6

(2) $25,000,000 shall be available for the Tribal

7 8

Courts Initiative; and

9 10 11

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

12 13 14 15

For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $100,000,000, to remain available until September 30, 2010, to be distributed by the Office for Victims of Crime in accordance with section 1402(d)(4) of the Victims of Crime Act of 1984 (Public Law 98–473). For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $150,000,000, to remain available until September 30, 2010, for assistance to law enforcement in rural areas, to prevent and combat crime, especially drug-related crime. For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $50,000,000, to remain available until September 30, 2010, for Internet Crimes Against Children (ICAC) initiatives. HR 1 PP

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1 2 3 4

C OMMUNITY O RIENTED POLICING S ERVICES For an additional amount for ‘‘Community Oriented Policing Services’’, for grants under section 1701 of title I of the

5

1968 Omnibus Crime Control and Safe Streets Act (42 6 7

U.S.C. 3796dd) for hiring and rehiring of additional

8

career law enforcement officers under part Q of such title,

9

and civilian public safety personnel, notwithstanding sub-

10

section (i) of such section and notwithstanding 42 U.S.C.

11

3796dd–3(c), $1,000,000,000, to remain available until

12 13

September 30, 2010. S ALARIES AND E XPENSES

14 15

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

For an additional amount for ‘‘Science’’, $450,000,000, to remain available until September 30, 2010. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

AERONAUTICS

2 3

For an additional amount for ‘‘Aeronautics’’,

4

$200,000,000, to remain available until September

5

30, 2010.

6 EXPLORATION

7 8 9 10

For an additional amount for ‘‘Exploration’’, $450,000,000, to remain available until September 30, 2010.

11 12 13

CROSS AGENCY SUPPORT

For an additional amount for ‘‘Cross Agency Support’’, $200,000,000, to remain available until September

14 15

30, 2010. OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Office of Inspector General’’, $2,000,000, to remain available until September 30, 2011. N ATIONAL S CIENCE FOUNDATION RESEARCH AND RELATED ACTIVITIES

For an additional amount for ‘‘Research and Related Activities’’, $1,000,000,000, to remain available until September 30, 2010. MAJOR RESEARCH EQUIPMENT AND FACILITIES CONSTRUCTION

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1

2

2

For an additional amount for ‘‘Major Research

3

Equipment and Facilities Construction’’, $150,000,000, to

4

remain available until September 30, 2010.

5 EDUCATION AND HUMAN RESOURCES

6 7

For an additional amount for ‘‘Education and Human

8

Resources’’, $50,000,000, to remain available until

9

September 30, 2010.

10 11 12

OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Office of Inspector General’’, $2,000,000, to remain available until September

13 14

30, 2011. GENERAL PROVISIONS—THIS TITLE

15

S EC . 201. The Assistant Secretary of Commerce for Communications and Information (Assistant Secretary), in consultation with the Federal Communications Commission (Commission) (and, with respect to rural areas, the Secretary of Agriculture), shall establish a national broadband service development and expansion program in conjunction with the technology opportunities program, which shall be referred to the Broadband Technology Opportunities Program. The Assistant Secretary shall ensure that the program complements and enhances and does not conflict with other Federal broadband initiatives and programs. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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2

2

(1) The purposes of the program are to—

3

(A) provide access to broadband service to

4

citizens residing in unserved areas of the United

5

States;

6

(B) provide improved access to broadband

7 8

service to citizens residing in underserved areas

9

of the United States;

10

(C) provide broadband education, aware-

11

ness, training, access, equipment, and support

12

to— 13

(i) schools, libraries, medical and

14

healthcare providers, community colleges

15

and other institutions of higher education, and other community support organizations and entities to facilitate greater use of broadband service by or through these organizations; (ii) organizations and agencies that provide outreach, access, equipment, and support services to facilitate greater use of broadband service by low-income, unemployed, aged, and otherwise vulnerable populations; and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(iii) job-creating strategic facilities lo-

2 3

cated within a State-designated economic

4

zone, Economic Development District des-

5

ignated by the Department of Commerce, 6

Renewal Community or Empowerment Zone

7 8

designated by the Department of Housing

9

and Urban Development, or Enterprise

10

Community designated by the Department of

11

Agriculture.

12

(D) improve access to, and use of,

13

broadband service by public safety agencies; and

14 15

(E) stimulate the demand for broadband, economic growth, and job creation. (2) The Assistant Secretary may consult with the chief executive officer of any State with respect to— (A) the identification of areas described in subsection (1)(A) or (B) located in that State; and

(B) the allocation of grant funds within that State for projects in or affecting the State. (3) The Assistant Secretary shall— (A) establish and implement the grant pro-

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1

2

2

gram as expeditiously as practicable;

3

(B) ensure that all awards are made before

4

the end of fiscal year 2010;

5

(C) seek such assurances as may be nec6

essary or appropriate from grantees under the

7 8

program that they will substantially complete

9

projects supported by the program in accordance

10

with project timelines, not to exceed 2 years fol-

11

lowing an award; and

12

(D) report on the status of the program to

13

the Committees on Appropriations of the House

14

and the Senate, the Committee on Energy and

15

Commerce of the House, and the Committee on Commerce, Science, and Transportation of the Senate, every 90 days. (4) To be eligible for a grant under the program an applicant shall— (A) be a State or political subdivision thereof, a nonprofit foundation, corporation, institution or association, Indian tribe, Native Hawaiian organization, or other non-governmental entity in partnership with a State or political subdivision thereof, Indian tribe, or Native Hawaiian HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

organization if the Assistant Secretary deter

3

mines the partnership consistent with the pur-

4

poses this section;

5

(B) submit an application, at such time, in 6

such form, and containing such information as

7

the Assistant Secretary may require;

8 9

(C) provide a detailed explanation of how

10

any amount received under the program will be

11

used to carry out the purposes of this section in

12

an efficient and expeditious manner, including a

13

demonstration that the project would not have

14

been implemented during the grant period with-

15

out Federal grant assistance; (D) demonstrate, to the satisfaction of the Assistant Secretary, that it is capable of carrying out the project or function to which the application relates in a competent manner in compliance with all applicable Federal, State, and local laws; (E) demonstrate, to the satisfaction of the Assistant Secretary, that it will appropriate (if the applicant is a State or local government agency) or otherwise unconditionally obligate, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

from non-Federal sources, funds required to meet

3

the requirements of paragraph (5);

4

(F) disclose to the Assistant Secretary the

5

source and amount of other Federal or State 6

funding sources from which the applicant re-

7 8

ceives, or has applied for, funding for activities

9

or projects to which the application relates; and

10

(G) provide such assurances and procedures

11

as the Assistant Secretary may require to ensure

12

that grant funds are used and accounted for in

13

an appropriate manner.

14

(5) The Federal share of any project may not ex-

15

ceed 80 percent, except that the Assistant Secretary may increase the Federal share of a project above 80 percent if— (A) the applicant petitions the Assistant Secretary for a waiver; and (B) the Assistant Secretary determines that the petition demonstrates financial need. (6) The Assistant Secretary may make competitive grants under the program to— (A) acquire equipment, instrumentation, networking capability, hardware and software, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

digital network technology, and infrastructure

3

for broadband services;

4

(B) construct and deploy broadband service

5

related infrastructure; 6

(C) ensure access to broadband service by

7

community anchor institutions;

8 9

(D) facilitate access to broadband service by

10

low-income, unemployed, aged, and otherwise

11

vulnerable populations in order to provide edu-

12

cational and employment opportunities to mem-

13

bers of such populations;

14

(E) construct and deploy broadband facili-

15

ties that improve public safety broadband communications services; and (F) undertake such other projects and activities as the Assistant Secretary finds to be consistent with the purposes for which the program is established. (7) The Assistant Secretary— (A) shall require any entity receiving a grant pursuant to this section to report quarterly, in a format specified by the Assistant Secretary, on such entity’s use of the assistance and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

progress fulfilling the objectives for which such

3

funds were granted, and the Assistant Secretary

4

shall make these reports available to the public;

5

(B) may establish additional reporting and 6

information requirements for any recipient of

7 8

any assistance made available pursuant to this

9

section;

10

(C) shall establish appropriate mechanisms

11

to ensure appropriate use and compliance with

12

all terms of any use of funds made available

13

pursuant to this section;

14

(D) may, in addition to other authority

15

under applicable law, deobligate awards to grantees that demonstrate an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary, and award these funds competitively to new or existing applicants consistent with this section; and (E) shall create and maintain a fully searchable database, accessible on the Internet at no cost to the public, that contains at least the name of each entity receiving funds made availHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

able pursuant to this section, the purpose for

3

which such entity is receiving such funds, each

4

quarterly report submitted by the entity pursuant

5

to this section, and such other information 6

sufficient to allow the public to understand and

7 8

monitor grants awarded under the program.

9

(8) Concurrent with the issuance of the Request

10 11

for Proposal for grant applications pursuant to this section, the Assistant Secretary shall, in coordination

12 13 14 15

with the Federal Communications Commission, publish the non-discrimination and network interconnection obligations that shall be contractual conditions of grants awarded under this section. (9) Within 1 year after the date of enactment of this Act, the Commission shall complete a rulemaking to develop a national broadband plan. In developing the plan, the Commission shall— (A) consider the most effective and efficient national strategy for ensuring that all Americans have access to, and take advantage of, advanced broadband services; (B) have access to data provided to other Government agencies under the Broadband Data HR 1 PP

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1

Improvement Act (47 U.S.C. 1301 note);

2 3

(C) evaluate the status of deployments of

4

broadband service, including the progress of

5

projects supported by the grants made pursuant 6

to this section; and

7

(D) develop recommendations for achieving

8 9

the goal of nationally available broadband serv

10

ice for the United States and for

11

promoting broadband adoption

12

nationwide.

13

(10) The Assistant Secretary shall develop and

14 15

maintain a comprehensive nationwide inventory map of existing broadband service capability and availability in the United States that entities and depicts the geographic extent to which broadband service capability is deployed and available from a commercial provider or public provider throughout each State: Provided, That not later than 2 years after the date of the enactment of the Act, the Assistant Secretary shall make the broadband inventory map developed and maintained pursuant to this section accessible to the public. S EC . 202. The Assistant Secretary of Commerce for HR 1 PP

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1 2

Communications and Information may reissue any coupon

3

issued under section 3005(a) of the Digital Television

4

Transition and Public Safety Act of 2005 that has expired

5

before use, and shall cancel any unredeemed coupon 6 7 8

reported as lost and may issue a replacement coupon for the lost coupon.

9 10 11 12 13 14 15

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1 2

TITLE III—DEPARTMENT OF DEFENSE OPERATION

3

AND MAINTENANCE O PERATION AND M AINTENANCE, A RMY

4

For an additional amount for ‘‘Operation and Mainte-

5

nance, Army’’, $1,169,291,000, to remain available for 6

obligation until September 30, 2010.

7

O PERATION AND M AINTENANCE, N AVY

8 9

For an additional amount for ‘‘Operation and Mainte-

10

nance, Navy’’, $571,843,000, to remain available for obliga-

11

tion until September 30, 2010.

12

O PERATION AND M AINTENANCE, M ARINE C ORPS For an 13 14 15

additional amount for ‘‘Operation and Maintenance, Marine Corps’’, $112,167,000, to remain available for obligation until September 30, 2010. O PERATION AND M AINTENANCE, A IR FORCE For an additional amount for ‘‘Operation and Maintenance, Air Force’’, $927,113,000, to remain available for obligation until September 30, 2010. O PERATION AND M AINTENANCE, A RMY R ESERVE For an additional amount for ‘‘Operation and Maintenance, Army Reserve’’, $79,543,000, to remain available for obligation until September 30, 2010. O PERATION AND M AINTENANCE, N AVY R ESERVE For an additional amount for ‘‘Operation and Maintenance, Navy HR 1 PP

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1 2

Reserve’’, $44,586,000, to remain available for obligation

3

until September 30, 2010.

4

O PERATION AND M AINTENANCE, M ARINE C ORPS R ESERVE For

5

an additional amount for ‘‘Operation and Maintenance, 6 7 8

Marine Corps Reserve’’, $32,304,000, to remain available for obligation until September 30, 2010.

9

O PERATION AND M AINTENANCE, A IR FORCE R ESERVE

10

For an additional amount for ‘‘Operation and Mainte-

11

nance, Air Force Reserve’’, $10,674,000, to remain avail-

12

able for obligation until September 30, 2010. 13 14 15

O PERATION AND M AINTENANCE, A RMY N ATIONAL G UARD For an additional amount for ‘‘Operation and Maintenance, Army National Guard’’, $215,557,000, to remain available for obligation until September 30, 2010. O PERATION AND M AINTENANCE, A IR N ATIONAL G UARD For an additional amount for ‘‘Operation and Maintenance, Air National Guard’’, $20,922,000, to remain available for obligation until September 30, 2010. PROCUREMENT D EFENSE PRODUCTION A CT PURCHASES For an additional amount for ‘‘Defense Production Act Purchases’’, $100,000,000, to remain available for obligation until September 30, 2010. HR 1 PP

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION

3

R ESEARCH , D EVELOPMENT , T EST AND E VALUATION ,

4

D EFENSE -W IDE For an additional amount for ‘‘Research,

5

Development, Test and Evaluation, Defense-Wide’’, 6 7

$200,000,000, to remain available for obligation until

8

September 30, 2010.

9

OTHER DEPARTMENT OF DEFENSE PROGRAMS

10

D EFENSE H EALTH PROGRAM For an additional amount for

11

‘‘Defense Health Program’’, $250,000,000 for operation

12 13

and maintenance, to remain available for obligation until September 30, 2010.

14

O FFICE OF THE INSPECTOR G ENERAL

15

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

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1 2

TITLE IV—ENERGY AND WATER DEVELOPMENT

3

DEPARTMENT OF DEFENSE—CIVIL

4

D EPARTMENT OF THE A RMY

5

C ORPS OF E NGINEERS —C IVIL 6 INVESTIGATIONS

7 8 9 10 11

For an additional amount for ‘‘Investigations’’ for expenses necessary where authorized by law for the collection and study of basic information pertaining to river and harbor, flood and storm damage reduction, shore

12

protection, aquatic ecosystem restoration, and related 13 14 15

needs; for surveys and detailed studies, and plans and specifications of proposed river and harbor, flood and storm damage reduction, shore protection, and aquatic ecosystem restoration projects and related efforts prior to construction; for restudy of authorized projects; and for miscellaneous investigations and, when authorized by law, surveys and detailed studies, and plans and specifications of projects prior to construction, $25,000,000: Provided, That funds provided under this heading in this title shall only be used for programs, projects or activities that heretofore or hereafter receive funds provided in Acts making appropriations available for Energy and Water Development: Provided further, That funds provided under HR 1 PP

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1 2

this heading in this title shall be used for programs,

3

projects or activities or elements of programs, projects or

4

activities that can be completed within the funds made

5

available in that account and that will not require new 6 7

budget authority to complete: Provided further, That for

8

projects that are being completed with funds appropriated

9

in this Act that would otherwise be expired for obligation,

10

expired funds appropriated in this Act may be used to pay

11

the cost of associated supervision, inspection, over

12 13 14 15

engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary shall have unlimited reprogramming authority for these funds provided under this heading. CONSTRUCTION

For an additional amount for ‘‘Construction’’ for expenses necessary for the construction of river and harbor, flood and storm damage reduction, shore protection, aquatic ecosystem restoration, and related projects authorized by law, $2,000,000,000, of which such sums as are necessary to cover the Federal share of construction costs for facilities under the Dredged Material Disposal Facilities program shall be derived from the Harbor Maintenance Trust Fund as authorized by Public Law HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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104–303: Provided, That not less than $200,000,000 of the

3

funds provided shall be for water-related environmental

4

infrastructure assistance: Provided further, That section

5

102 of Public Law 109–103 (33 U.S.C. 2221) shall not 6 7

apply to funds provided in this title: Provided further, That

8

notwithstanding any other provision of law, no funds shall

9

be drawn from the Inland Waterways Trust Fund, as

10 11

authorized in Public Law 99–662: Provided further, That funds provided under this heading in this title shall only be

12 13 14 15

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 HR 1 PP

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2

2

be used by the Secretary of the Army, acting through the

3

Chief of Engineers, to undertake work authorized to be car-

4

ried out in accordance with section 14 of the Flood Control

5

Act of 1946 (33 U.S.C. 701r); section 205 of the Flood 6 7

Control Act of 1948 (33 U.S.C. 701s); section 206 of the

8

Water Resources Development Act of 1996 (33 U.S.C.

9

2330); or section 1135 of the Water Resources

10 11

Development Act of 1986 (33 U.S.C. 2309a), notwithstanding the program cost limitations set forth in

12 13 14 15

those sections: Provided further, That for projects that are being completed with funds appropriated in this Act that would otherwise be expired for obligation, expired funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, over engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary shall have unlimited reprogramming authority for these funds provided under this heading. MISSISSIPPI RIVER AND TRIBUTARIES

For an additional amount for ‘‘Mississippi River and Tributaries’’ for expenses necessary for flood damage reduction projects and related efforts as authorized by law, $500,000,000, of which such sums as are necessary to HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

cover the Federal share of operation and maintenance

3

costs for inland harbors shall be derived from the Harbor

4

Maintenance Trust Fund, pursuant to Public Law 99–662:

5

Provided, That funds provided under this heading in this 6 7

title shall only be used for programs, projects or activities

8

that heretofore or hereafter receive funds provided in Acts

9

making appropriations available for Energy and Water

10 11

Development: Provided further, That funds provided under this heading in this title shall be used for programs,

12 13 14 15

projects or activities or elements of programs, projects or activities that can be completed within the funds made available in that account and that will not require new budget authority to complete: Provided further, That the limitation concerning total project costs in section 902 of the Water Resources Development Act of 1986, as amended (33 U.S.C. 2280), shall not apply during fiscal year 2009 to any project that received funds provided in this title: Provided further, That for projects that are being completed with funds appropriated in this Act that would otherwise be expired for obligation, expired funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, over engineering and design on those projects and on subsequent claims, if any: HR 1 PP

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2

1 2

Provided further, That the Secretary shall have unlimited

3

reprogramming authority for these funds provided under

4

this heading.

5 OPERATION AND MAINTENANCE

6 7

For an additional amount for ‘‘Operation and Mainte-

8

nance’’ for expenses necessary for the operation, mainte-

9

nance, and care of existing river and harbor, flood and

10

storm damage reduction, aquatic ecosystem restoration,

11

and related projects authorized by law, and for surveys

12

and charting of northern and northwestern lakes and 13 14 15

connecting waters, clearing and straightening channels, and removal of obstructions to navigation, $1,900,000,000, of which such sums as are necessary to cover the Federal share of operation and maintenance costs for coastal harbors and chan nels, and inland harbors shall be derived from the Harbor Maintenance Trust Fund, pursuant to Public Law 99–662; and of which such sums as become available under section 217 of the Water Resources Development Act of 1996, Public Law 104–303, shall be used to cover the cost of operation and maintenance of the dredged material disposal facilities for which fees have been collected: Provided, That funds provided under this heading in this title shall only be used for HR 1 PP

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2

1 2

programs, projects or activities that heretofore or hereafter

3

receive funds provided in Acts making appropriations

4

available for Energy and Water Development: Provided

5

further, That funds provided under this heading in this title 6 7

shall be used for programs, projects or activities or

8

elements of programs, projects or activities that can be

9

completed within the funds made available in that account

10

and that will not require new budget authority to complete:

11

Provided further, That $90,000,000 of the funds provided

12 13 14 15

under this heading shall be used for activities described in section 9004 of Public Law 110–114: Provided further, That section 9006 of Public Law 110–114 shall not apply to funds provided in this title: Provided further, That for projects that are being completed with funds appropriated in this Act that would otherwise be expired for obligation, expired funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, over engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary shall have unlimited reprogramming authority for these funds provided under this heading. REGULATORY PROGRAM

For an additional amount for ‘‘Regulatory Program’’ HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

for expenses necessary for administration of laws per-

3

taining to regulation of navigable waters and wetlands,

4

$25,000,000 is provided.

5 6

FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM

For an

7

additional amount for ‘‘Formerly Utilized Sites Remedial

8

Action Program’’ for expenses necessary to clean up

9

contamination from sites in the United States resulting

10 11

from work performed as part of the Nation’s early atomic energy program, $100,000,000: Provided further, That

12 13

funds provided under this heading in this title shall be

14

used for programs, projects or activities or elements of

15

programs, projects or activities that can be completed within the funds made available in that account and that will not require new budget authority to complete: Provided further, That for projects that are being completed with funds appropriated in this Act that would otherwise be expired for obligation, expired funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, over engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary shall have unlimited reprogramming authority for these funds provided under this heading. HR 1 PP

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2

1

FLOOD CONTROL AND COASTAL EMERGENCIES

2 3 4 5

For an additional amount for ‘‘Flood Control and Coastal Emergencies’’ for expenses necessary for pre-placement of materials and equipment, advance

6

measures and other activities authorized by law, 7 8

$50,000,000 is provided.

9

DEPARTMENT OF THE INTERIOR

10

B UREAU OF R ECLAMATION

11 12

WATER AND RELATED RESOURCES

For an additional amount for management, develop-

13

ment, and restoration of water and related natural re14 15

sources and for related activities, including the operation, maintenance, and rehabilitation of reclamation and other facilities, participation in fulfilling related Federal responsibilities to Native Americans, and related grants to, and cooperative and other agreements with, State and local governments, federally recognized Indian tribes, and others, $1,400,000,000; of which such amounts as may be necessary may be advanced to the Colorado River Dam Fund: Provided, That of the total appropriated, the amount for program activities that can be financed by the Reclamation Fund or the Bureau of Reclamation special fee account established by 16 U.S.C. 460l–6a(i) shall be HR 1 PP

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2

1 2

derived from that Fund or account: Provided further, That

3

funds contributed under 43 U.S.C. 395 are available until

4

expended for the purposes for which contributed: Provided

5

further, That funds advanced under 43 U.S.C. 397a shall 6 7

be credited to this account and are available until

8

expended for the same purposes as the sums appropriated

9

under this heading: Provided further, That funds provided

10 11

under this heading in this title shall only be used for programs, projects or activities that heretofore or hereafter

12 13 14 15

receive funds provided in Acts making appropriations available for Energy and Water Development: Provided further, That funds provided in this Act shall be used for elements of projects, programs or activities that can be completed within these funding amounts and not create budgetary obligations in future fiscal years: Provided further, That $50,000,000 of the funds provided under this heading may be transferred to the Department of the Interior for programs, projects and activities authorized by the Central Utah Project Completion Act (titles II–V of Public Law 102–575): Provided further, That $50,000,000 of the funds provided under this heading may be used for programs, projects, and activities authorized by the California Bay-Delta Restoration Act (Public Law 108– HR 1 PP

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1

2

2

361): Provided further, That not less than $60,000,000 of

3

the funds provided under this heading shall be used for

4

rural water projects and shall be expended primarily on

5

water intake and treatment facilities of such projects: Pro 6 7

vided further, That not less than $10,000,000 of the funds

8

provided under this heading shall be used for a

9

bureau-wide inspection of canals program in urbanized

10 11

areas: Provided further, That not less than $110,000,000 of the funds provided under this heading shall be used for

12 13 14 15

water reclamation and reuse projects (title 16 of Public Law 102–575): Provided further, That the costs of reimbursable activities, other than for maintenance and rehabilitation, carried out with funds provided in this Act shall be repaid pursuant to existing authorities and agreements: Provided further, That the costs of maintenance and rehabilitation activities carried out with funds provided in this Act shall be repaid pursuant to existing authority, except the length of repayment period shall be determined on needs-based criteria to be established and adopted by the Commissioner, but in no case shall the repayment period exceed 25 years: Provided further, That for projects that are being completed with funds appropriated in this Act that would otherwise be exHR 1 PP

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2

1 2

pired for obligation, expired funds appropriated in this Act

3

may be used to pay the cost of associated supervision, in-

4

spection, over engineering and design on those projects

5

and on subsequent claims, if any: Provided further, That 6 7 8

the Secretary shall have unlimited reprogramming authority for these funds provided under this heading.

9

DEPARTMENT OF ENERGY 10

E NERGY PROGRAMS

11

ENERGY EFFICIENCY AND RENEWABLE ENERGY

12 13

For an additional amount for ‘‘Energy Efficiency and

14

Renewable Energy’’, $14,398,000,000, for necessary ex-

15

penses, to remain available until September 30, 2010: Provided, That $4,200,000,000 shall be available for Energy Efficiency and Conservation Block Grants for implementation of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.), of which $2,100,000,000 is available through the formula in subtitle E: Provided further, That the remaining $2,100,000,000 shall be awarded on a competitive basis only to competitive grant applicants from States in which the Governor certifies to the Secretary of Energy that the applicable State regulatory authority will implement the integrated resource planning and rate HR 1 PP

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2

1 2

design modifications standards required to be considered

3

under paragraphs (16) and (17) of section 111(d) of the

4

Public Utility Regulatory Policies Act of 1978 (16 U.S.C.

5

2621(d)(16) and (17)); and the Governor will take all ac6 7

tions within his or her authority to ensure that the State, or

8

the applicable units of local government that have au-

9

thority to adopt building codes, will implement—

10

(A) building energy codes for residential build-

11 12

ings that the Secretary determines are likely to meet

13

or exceed the 2009 International Energy Conservation

14

Code;

15

(B) building energy codes for commercial buildings that the Secretary determines are likely to meet or exceed the ANSI/ASHRAE/IESNA Standard 90.1– 2007; and (C) a plan for implementing and enforcing the building energy codes described in subparagraphs (A) and (B) that is likely to ensure that at least 90 percent of the new and renovated residential and commercial building space will meet the standards within 8 years after the date of enactment of this Act: Provided further, That $2,000,000,000 shall be available for grants for the

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

manufacturing of advanced batteries and components and

3

the Secretary shall provide facility funding awards under

4

this section to manufacturers of advanced battery systems

5

and vehicle batteries that are produced in the United 6 7

States, including advanced lithium ion batteries, hybrid

8

electrical systems, component manufacturers, and

9

software designers: Provided further, That notwithstanding

10 11

section 3304 of title 5, United States Code, and without regard to the provisions of sections 3309 through 3318 of

12 13 14 15

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. E LECTRICITY D ELIVERY AND E NERGY R ELIABILITY For an additional amount for ‘‘Electricity Delivery and Energy Reliability’’, $4,500,000,000, for necessary expenses, to HR 1 PP

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2

1 2

remain available until September 30, 2010: Provided, That

3

$100,000,000 shall be available for worker training

4

activities: Provided further, That notwithstanding section

5

3304 of title 5, United States Code, and without regard to 6 7

the provisions of sections 3309 through 3318 of such title

8

5, the Secretary of Energy, upon a determination that

9

there is a severe shortage of candidates or a critical hiring

10 11

need for particular positions, may from within the funds provided, recruit and directly appoint highly qualified

12 13 14 15

individuals into the competitive service: Provided further, That such authority shall not apply to positions in the Excepted Service or the Senior Executive Service: Pro vided further, That any action authorized herein shall be consistent with the merit principles of section 2301 of such title 5, and the Department shall comply with the public notice requirements of section 3327 of such title 5: Provided, That for the purpose of facilitating the development of regional transmission plans, the Office of Electricity Delivery and Energy Reliability within the Department of Energy is provided $80,000,000 within the available funds to conduct a resource assessment and an analysis of future demand and transmission requirements: Provided further, That the Office of Electricity Delivery HR 1 PP

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2

1 2

and Energy Reliability will provide technical assistance to

3

the North American Electric Reliability Corporation, the

4

regional reliability entities, the States, and other

5

transmission owners and operators for the formation of 6 7

interconnection-based transmission plans for the Eastern

8

and Western Interconnections and ERCOT: Provided

9

further, That such assistance may include modeling,

10

support to regions and States for the development of

11

coordinated State electricity policies, programs, laws, and

12 13 14 15

regulations: Provided further, That $10,000,000 is provided to implement section 1305 of Public Law 110–140. FOSSIL E NERGY R ESEARCH AND D EVELOPMENT For an additional amount for ‘‘Fossil Energy Research and Development’’, $4,600,000,000, to remain available until September 30, 2010: Provided, That $2,000,000,000 is available for one or more near zero emissions powerplant(s): Provided further, $1,000,000,000 is available for selections under the Department’s Clean Coal Power Initiative Round III Funding Opportunity Announcement; notwithstanding the mandatory eligibility requirements of the Funding Opportunity Announcement, the Department shall consider applications that utilize petroleum coke for HR 1 PP

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1

2

2

some or all of the project’s fuel input: Provided further,

3

$1,520,000,000 is available for a competitive solicitation

4

pursuant to section 703 of Public Law 110–140 for projects

5

that demonstrate carbon capture from industrial sources: 6 7

Provided further, That awards for such projects may in-

8

clude plant efficiency improvements for integration with

9

carbon capture technology.

10 11

N ON -D EFENSE E NVIRONMENTAL C LEANUP For an additional amount for ‘‘Non-Defense Environ-

12

mental Cleanup’’, $483,000,000, to remain available until 13 14 15

September 30, 2010. U RANIUM E NRICHMENT D ECONTAMINATION AND D ECOMMISSIONING FUND For an additional amount for ‘‘Uranium Enrichment Decontamination and Decommissioning Fund’’, $390,000,000, to remain available until September 30, 2010, of which $70,000,000 shall be available in accordance with title X, subtitle A of the Energy Policy Act of 1992. S CIENCE For an additional amount for ‘‘Science’’, $330,000,000, to remain available until September 30, 2010. T ITLE 17—INNOVATIVE T ECHNOLOGY L OAN G UARANTEE HR 1 PP

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1 2

PROGRAM Subject to section 502 of the Congressional

3

Budget Act of 1974, commitments to guarantee loans

4

under section 1702(b)(2) of the Energy Policy Act of 2005,

5

shall not exceed a total principal amount of 6 7

$50,000,000,000 for eligible projects, to remain available

8

until committed: Provided, That these amounts are in

9

addition to any authority provided elsewhere in this Act

10 11

and this and previous fiscal years: Provided further, That such sums as are derived from amounts received from

12 13 14 15

borrowers pursuant to section 1702(b)(2) of the Energy Policy Act of 2005 under this heading in this and prior Acts, shall be collected in accordance with section 502(7) of the Congressional Budget Act of 1974: Provided further, That the source of such payment received from borrowers is not a loan or other debt obligation that is guaranteed by the Federal Government: Provided further, That pursuant to section 1702(b)(2) of the Energy Policy Act of 2005, no appropriations are available to pay the subsidy cost of such guarantees: Provided further, That none of the loan guarantee authority made available in this Act shall be available for commitments to guarantee loans under section 1702(b)(2) of the Energy Policy Act of 2005 for any projects where funds, personnel, or property HR 1 PP

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2

1 2

(tangible or intangible) of any Federal agency, instrumen-

3

tality, personnel or affiliated entity are expected to be used

4

(directly or indirectly) through acquisitions, contracts,

5

demonstrations, exchanges, grants, incentives, leases, pro6 7

curements, sales, other transaction authority, or other ar-

8

rangements, to support the project or to obtain goods or

9

services from the project: Provided further, That none of

10

the loan guarantee authority made available in this Act

11

shall be available under section 1702(b)(2) of the Energy

12 13 14 15

Policy Act of 2005 for any project unless the Director of the Office of Management and Budget has certified in advance in writing that the loan guarantee and the project comply with the provisions under this title: Provided further, That for an additional amount for the cost of guaranteed loans authorized by section 1702(b)(1) and section 1705 of the Energy Policy Act of 2005, $8,500,000,000, available until expended, to pay the costs of guarantees made under this section: Provided further, That of the amount provided for Title XVII, $15,000,000 shall be used for administrative expenses in carrying out the guaranteed loan program. O FFICE OF THE INSPECTOR G ENERAL For necessary expenses of the Office of the Inspector HR 1 PP

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2

1 2

General in carrying out the provisions of the Inspector

3

General Act of 1978, as amended, $5,000,000, to remain

4

available until September 30, 2012, and an additional

5

$10,000,000 for such purposes, to remain available until 6 7

September 30, 2012.

8

ATOMIC ENERGY DEFENSE ACTIVITIES

9

N ATIONAL N UCLEAR S ECURITY A DMINISTRATION

10 11

WEAPONS ACTIVITIES

For an additional amount for weapons activities,

12

$1,000,000,000, to remain available until September 30, 13 14

2010. E NVIRONMENTAL AND O THER D EFENSE A CTIVITIES

15

DEFENSE ENVIRONMENTAL CLEANUP

For an additional amount for ‘‘Defense Environmental Cleanup’’, $5,527,000,000, to remain available until September 30, 2010. C ONSTRUCTION , R EHABILITATION , O PERATION ,

AND

M AINTENANCE, W ESTERN A REA POWER A DMINISTRATION 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, HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

That the Administrator shall establish such personnel

3

staffing levels as he deems necessary to economically and

4

efficiently complete the activities pursued under the

5

authority granted by section 402 of this Act: Provided 6 7

further, That this appropriation is non-reimbursable.

8

GENERAL PROVISIONS—THIS TITLE

9

S EC . 401. B ONNEVILLE POWER A DMINISTRATION B OR-

10 11

ROWING

A UTHORITY. For the purposes of providing funds to

assist in financing the construction, acquisition, and re-

12

placement of the transmission system of the Bonneville 13 14 15

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. S EC . 402. W

ESTERN

A REA POWER A DMINISTRATION

B ORROWING A UTHORITY. The Hoover Power Plant Act of 1984 (Public Law 98–381) is amended by adding at the end the following:

‘‘TITLE III—BORROWING HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

AUTHORITY

2 3

‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR

4

ROWING AUTHORITY.

5

‘‘(a) D EFINITIONS .—In this section: 6

‘‘(1) A

7

DMINISTRATOR .—The

term ‘Administrator’

8

means the Administrator of the Western Area Power

9

Administration.

10

‘‘(2) S

11

ECRETARY.—The

term ‘Secretary’ means

the Secretary of the Treasury. ‘‘(b) A UTHORITY.—

12

‘‘(1) I N GENERAL.—Notwithstanding any other 13 14 15

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 judg ment of the Administrator, are from time to time HR 1 PP

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2

1

required for the purpose of—

2 3

‘‘(i) constructing, financing, facili-

4

tating, planning, operating, maintaining, or

5

studying construction of new or upgraded 6

electric power transmission lines and

7 8

related facilities with at least one terminus

9

within the area served by the Western Area

10

Power Administration; and

11

‘‘(ii) delivering or facilitating the de-

12

livery of power generated by renewable en-

13

ergy resources constructed or reasonably

14

expected to be constructed after the date of

15

enactment of this section. ‘‘(2) I NTEREST .—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) R

EFINANCING .—The

Western Area Power

Administration may refinance loans taken pursuant to this section within the Treasury. ‘‘(4) P ARTICIPATION .—The Administrator may HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

permit other entities to participate in the financing,

3

construction and ownership projects financed under

4

this section.

5

‘‘(5) C

ONGRESSIONAL REVIEW OF DISBURSE -

6 7

MENT .—Effective

upon the date of enactment of this

8

section, the Administrator shall have the authority to

9

have utilized $1,750,000,000 at any one time. If the

10 11

Administrator seeks to borrow funds above $1,750,000,000, the funds will be disbursed unless

12 13 14 15

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) T

RANSMISSION

L INE AND R ELATED FACILITY

PROJECTS .— ‘‘(1) I N 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(2) P ROCEEDS .—The Western Area Power Ad-

3

ministration shall apply the proceeds from the use of

4

the transmission capacity from an individual project

5

under this section to the repayment of the principal 6 7

and interest of the loan from the Treasury attributable

8

to that project, after reserving such funds as the

9

Western Area Power Administration determines are

10

necessary—

11

‘‘(A) to pay for any ancillary services that

12

are provided; and

13

‘‘(B) to meet the costs of operating and

14

maintaining the new project from which the rev-

15

enues are derived. ‘‘(3) S

OURCE 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) L

IMITATION ON AUTHORITY.—Nothing

in this

section confers on the Administrator any additional authority or obligation to provide ancillary services HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to users of transmission facilities developed under

3

this section.

4

‘‘(5) T

REATMENT OF CERTAIN REVENUES .—Revenue

5

from ancillary services provided by existing Federal 6 7

power systems to users of transmission projects

8

funded pursuant to this section shall be treated as

9

revenue to the existing power system that provided the

10 11

ancillary services. ‘‘(d) C ERTIFICATION .—

12

‘‘(1) I N GENERAL.—For each project in which the 13 14 15

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) I N GENERAL.—If, at the end of the HR 1 PP

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1 2

useful life of a project, there is a remaining bal-

3

ance owed to the Treasury under this section, the

4

balance shall be forgiven.

5

‘‘(B) U

NCONSTRUCTED PROJECTS .—Funds

6

expended to study projects that are considered

7 8

pursuant to this section but that are not con-

9

structed shall be forgiven.

10 11

‘‘(C) N OTIFICATION .—The Administrator shall notify the Secretary of such amounts as are

to be

12 13 14

forgiven

under

this

paragraph.

‘‘(e)

PUBLIC

PROCESSES .— ‘‘(1) P OLICIES AND PRACTICES .—Prior to re-

15

questing 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) R EQUESTS 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.’’ S EC . 403. T

ECHNICAL

AND

C ORRECTIONS TO THE E NERGY INDEPENDENCE

S ECURITY A CT OF 2007. Title XIII of the Energy

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2

1 2

Independence and Security Act of 2007 (15 U.S.C. 17381

3

and following) is amended as follows:

4

(1) By amending subparagraph (A) of section

5

1304(b)(3) to read as follows: 6

‘‘(A) IN GENERAL.—In carrying out the ini-

7 8

tiative, the Secretary shall provide financial sup-

9

port to smart grid demonstration projects in-

10

cluding those in rural areas and/or areas where

11

the majority of generation and transmission as-

12

sets are controlled by a tax-exempt entity.’’.

13

(2) By amending subparagraph (C) of section

14 15

1304(b)(3) to read as follows: ‘‘(C) F EDERAL SHARE OF COST OF TECHNOLOGY INVESTMENTS .—The

Secretary shall provide to an

electric utility described in subparagraph (B) or to other parties financial assistance for use in paying an amount equal to not more than 50 percent of the cost of qualifying advanced grid technology investments made by the electric utility or other party to carry out a demonstration project.’’. (3) By inserting a new subparagraph (E) after 1304(b)(3)(D) as follows: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(E) A

2 3

VAILABILITY OF DATA .—The

Secretary shall establish and maintain a

4

smart grid information clearinghouse in a

5

timely manner which will make data from 6

smart grid demonstration projects and other

7 8

sources available to the public. As a condi-

9

tion of receiving financial assistance under

10

this subsection, a utility or other participant

11

in a smart grid demonstration project shall

12

provide such information as the Sec retary

13

may require to become available through

14

the smart grid information clearinghouse in

15

the form and within the timeframes as directed by the Secretary. The Secretary shall assure that business proprietary information and individual customer information is not included in the information made available through the clearinghouse.’’. (4) By amending paragraph (2) of section 1304(c) to read as follows: ‘‘(2) to carry out subsection (b), such sums as may be necessary.’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(5) By amending subsection (a) of section 1306

2 3 4

by striking ‘‘reimbursement of one-fifth (20 percent)’’ and inserting ‘‘grants of up to one-half (50 percent)’’.

5

(6) By striking the last sentence of 6 7

subsection (b)(9) of section 1306. (7) By striking ‘‘are eligible for’’ in subsection

8 9

(c)(1) of section 1306 and inserting ‘‘utilize’’.

10 11

(8) By amending subsection (e) of section 1306 to read as follows:

12 13

‘‘(e) The Secretary shall— ‘‘(1) establish within 60 days after the enactment

14 15

of the American Recovery and Reinvestment Act of 2009 procedures by which applicants can obtain grants of not more than one-half of their documented costs; ‘‘(2) establish procedures to ensure that there is no duplication or multiple payment for the same investment or costs, that the grant goes to the party making the actual expenditures for Qualifying Smart Grid Investments, and that the grants made have significant effect in encouraging and facilitating the development of a smart grid; ‘‘(3) maintain public records of grants made, reHR 1 PP

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2 cipients, and qualifying Smart Grid investments which have received grants; ‘‘(4) establish procedures to provide advance payment of moneys up to the full amount of the grant award; and ‘‘(5) have and exercise the discretion to deny grants for investments that do not qualify in the reasonable judgment of the Secretary.’’. S EC . 404. T

EMPORARY S TIMULUS

L OAN G UARANTEE

PROGRAM . (a) A MENDMENT .—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:

1

‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY

2 MENT OF RENEWABLE ENERGY AND ELEC 3 TRIC POWER TRANSMISSION PROJECTS. 4‘‘(a) IN G ENERAL.—Notwithstanding section 1703, the 5 Secretary may make guarantees under this section only for 6 commercial technology projects under subsection (b) that 7 will reach financial close not later than September 30, 8 2012. 9‘‘(b) C

ATEGORIES .—Projects

from only the following

10 categories shall be eligible for support under this section: 11‘‘(1) Renewable energy systems. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

12‘‘(2) Electric power transmission systems.

3

13‘‘(c) A UTHORIZATION L IMIT .—There are authorized to

4

14 be appropriated $10,000,000,000 to the Secretary for fiscal

5

15 years 2009 through 2012 to provide the cost of guarantees

6 7

16 made under section. 17‘‘(d) S UNSET .—The authority to enter into guarantees

8

18 under this section shall expire on September 30, 2012.’’. 9 10 11

19(b) T ABLE OF C ONTENTS A MENDMENT .—The table of 20 contents for the Energy Policy Act of 2005 is amended by

12

21 inserting after the item relating to section 1704 the fol

13

22 lowing new item:

14 15

‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and electric power transmission projects.’’.

23S EC . 405. W

EATHERIZATION

PROGRAM A MENDMENTS .

24 (a) I NCOME L EVEL.—Section 412(7) of the Energy Con servation and Production Act (42 U.S.C. 6862(7)) is amended by striking ‘‘150 percent’’ both places it appears and inserting ‘‘200 percent’’. (b) A

SSISTANCE

L EVEL PER D WELLING U NIT .—Section

415(c)(1) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended by striking ‘‘$2,500’’ and inserting ‘‘$5,000’’. (c) T RAINING AND T ECHNICAL A SSISTANCE.—Section 416 of the Energy Conservation and Production Act (42 U.S.C. 6866) is amended by striking ‘‘10 percent’’ and inserting HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

‘‘up to 20 percent’’. S EC . 406. T ECHNICAL C ORRECTIONS TO PUBLIC U TILITY R EGULATORY POLICIES A CT OF 1978. (a) Section 111(d) of

5

the Public Utility Regulatory Policies Act of 1978 (16 6 7

U.S.C. 2621(d)) is amended by redesignating paragraph

8

(16) relating to consideration of smart grid investments

9

(added by section 1307(a) of Public Law 110–140) as

10 11

paragraph (18) and by redesignating paragraph (17) relating to smart grid information (added by section 1308(a)

12 13 14 15

of Public Law 110–140) as paragraph (19). (b) Subsections (b) and (d) of section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by striking ‘‘(17) through (18)’’ in each place it appears and inserting ‘‘(16) through (19)’’. TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT DEPARTMENT OF THE TREASURY C OMMUNITY D EVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM A CCOUNT For an additional amount for ‘‘Community Development Financial Institutions Fund Program Account’’, $250,000,000, to remain available until September 30, 2010, for qualified applicants under the fiscal year 2008 and 2009 funding rounds of the Community Development Financial Institutions Program, HR 1 PP

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2

1 2

of which up to $20,000,000 may be for financial

3

assistance, technical assistance, training and outreach

4

programs, including up to $5,000 for subsistence

5

expenses, designed to benefit Native American, Native 6 7

Hawaiian, and Alaskan Native communities and provided

8

primarily through qualified community development lender

9

organizations with experience and expertise in community

10 11

development banking and lending in Indian country, Native American organizations, tribes and tribal

12 13 14 15

organizations and other suitable providers and up to $5,000,000 may be used for administrative expenses: Provided, That for purposes of the fiscal year 2008 and 2009 funding rounds, the following statutory provisions are hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 4707(d): Provided further, That no awardee, together with its sub sidiaries and affiliates, may be awarded more than 15 percent of the aggregate funds available during each of fiscal years 2008 and 2009 from the Community Development Financial Institutions Program: Provided further, That no later than 60 days after the date of enactment of this Act, the Department of the Treasury shall submit to the Committees on Appropriations of the House of Representatives and the Senate a detailed expenditure plan HR 1 PP

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2

1 2

for funds provided under this heading.

3

DISTRICT OF COLUMBIA

4 5

FEDERAL PAYMENTS FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER

6 AND SEWER AUTHORITY

7 8

For a Federal payment to the District of Columbia

9

Water and Sewer Authority, $125,000,000, to remain avail-

10

able until September 30, 2010, to continue implementation

11

of the Combined Sewer Overflow Long-Term Control Plan:

12

Provided, That the District of Columbia Water and Sewer

13

Authority provide a 100 percent match for this payment: 14 15

Provided further, That no later than 60 days after the date of enactment of this Act, the District of Columbia Water and Sewer Authority shall submit to the Committees on Appropriations of the House of Representatives and the Senate a detailed expenditure plan for funds provided under this heading: Provided further, That such expenditure plan shall include a description of each specific project, how specific projects will further the objectives of the Long-Term Control Plan, and all funding sources for each project. GENERAL SERVICES ADMINISTRATION R EAL PROPERTY A CTIVITIES HR 1 PP

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2

1 2

FEDERAL BUILDINGS FUND

3

LIMITATIONS ON AVAILABILITY OF REVENUE

4

(INCLUDING TRANSFER OF FUNDS)

5

For an additional amount to be deposited in the Fed-

6

eral Buildings Fund, $5,548,000,000, to carry out the pur-

7 8 9

poses of the Fund, of which not less than $1,400,000,000 shall be available for Federal buildings and United States

10

courthouses, not less than $1,200,000,000 shall be

11

available for border stations, and not less than

12 13

$2,500,000,000 shall be available for measures necessary to convert GSA facilities to High-Performance Green

14 15

Buildings, as defined in section 401 of Public Law 110–140: Provided, That not to exceed $108,000,000 of the amounts provided under this heading may be expended for rental of space, related to leasing of temporary space in connection with projects funded under this heading: Provided further, That not to exceed $127,000,000 of the amounts provided under this heading may be expended for building operations, for the administrative costs of completing projects funded under this heading: Provided further, That not less than $5,000,000,000 of the funds provided under this heading shall be obligated by September 30, 2010: Provided further, That the AdminisHR 1 PP

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2

1 2

trator of General Services is authorized to initiate design,

3

construction, repair, alteration, and other projects through

4

existing authorities of the Administrator: Provided further,

5

That the General Services Administration shall submit a 6 7

detailed plan, by project, regarding the use of funds made

8

available in this Act to the Committees on Appropriations

9

of the House of Representatives and the Senate within 60

10 11

days of enactment of this Act: Provided further, That of the amounts provided for converting GSA facilities to High-

12 13 14 15

Performance Green Buildings, $4,000,000 shall be transferred to and merged with ‘‘Government-Wide Policy’’, for carrying out the provisions of section 436 of the Energy Independence and Security Act of 2007 (Public Law 110– 140), establishing an Office of Federal High-Performance Green Buildings, to remain available until September 30, 2010: Provided further, That within the overall amount to be deposited into the Fund, $448,000,000 shall remain available until September 30, 2011, for the development and construction of the headquarters for the Department of Homeland Security, except that none of the preceding provisos shall apply to amounts made available under this proviso.

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2

1 2

E NERGY-E FFICIENT FEDERAL M OTOR VEHICLE FLEET

3

PROCUREMENT For capital expenditures and necessary

4

expenses of acquiring motor vehicles with higher fuel

5

economy, including: hybrid vehicles; neighborhood 6 7

electric vehicles; electric vehicles; and

8

commercially-available, plug-in hybrid vehicles,

9

$300,000,000, to remain available until September 30,

10

2011.

11

O FFICE OF INSPECTOR G ENERAL

12

For an additional amount for the Office of the Inspec13 14 15

tor General, to remain available until September 30, 2011, $2,000,000 and an additional $5,000,000 for such purposes, to remain available until September 30, 2012. RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD For necessary expenses of the Recovery Act Accountability and Transparency Board to carry out the provisions of title XV of this Act, $7,000,000, to remain available until September 30, 2010. SMALL BUSINESS ADMINISTRATION S ALARIES AND E XPENSES For an additional amount, to remain available until September 30, 2010, $84,000,000, of which $24,000,000 is for marketing, management, and technical assistance HR 1 PP

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1

2

2

under section 7(m) of the Small Business Act (15 U.S.C.

3

636(m)(4)) by intermediaries that make microloans under

4

the microloan program, of which $15,000,000 is for lender

5

oversight activities as authorized in section 501(c) of this 6 7

title, and of which $20,000,000 is for improving, stream-

8

lining, and automating information technology systems re-

9

lated to lender processes and lender oversight: Provided,

10

That no later than 60 days after the date of enactment of

11

this Act, the Small Business Administration shall submit to

12 13 14 15

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. O FFICE OF INSPECTOR G ENERAL For an additional amount for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, $10,000,000, to remain available until September 30, 2011. S URETY B OND G UARANTEES R EVOLVING 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. HR 1 PP

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2

1

B USINESS L OANS PROGRAM A CCOUNT

2 3

For an additional amount for the cost of direct loans,

4

$6,000,000, to remain available until September 30, 2010,

5

and for an additional amount for the cost of guaranteed

6 7

loans, $615,000,000, to remain available until September

8

30, 2010: Provided, That of the amount for the cost of

9

guaranteed loans, $515,000,000 shall be for loan subsidies

10 11

and loan modifications for loans to small business concerns authorized in section 501(a) of this title; and

12

$100,000,000 shall be for loan subsidies and loan 13 14 15

modifications for loans to small business concerns authorized in section 501(b) of this title: Provided further, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. A DMINISTRATIVE PROVISIONS —S MALL B USINESS A DMINISTRATION S EC . 501. E CONOMIC S TIMULUS FOR S MALL B USINESS C ONCERNS . (a) T THE

7(a) L

OAN

EMPORARY FEE

E LIMINATION FOR

PROGRAM .—Until September 30, 2010, and

to the extent that the cost of such elimination of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for which the application is approved HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

on or after the date of enactment of this Act, the

3

Administrator shall—

4

(1) in lieu of the fee otherwise applicable under

5

section 7(a)(23)(A) of the Small Business Act (15 6 7

U.S.C. 636(a)(23)(A)), collect no fee; and (2) in lieu of the fee otherwise applicable under

8 9 10 11

section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no fee. (b) T EMPORARY FEE E LIMINATION FOR THE 504 L OAN

12 13

PROGRAM .— (1) I N G ENERAL.—Until September 30, 2010, and

14 15

to the extent the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this Act— (A) the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee; (B) a development company shall, in lieu of HR 1 PP

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2

1 2

the processing fee under section 120.971(a)(1) of

3

title 13, Code of Federal Regulations (relating to

4

fees paid by borrowers), or any successor

5

thereto, collect no fee. 6

(2) R EIMBURSEMENT FOR W AIVED FEES .—

7

(A) I N G ENERAL.—To the extent that the cost

8 9

of such payments is offset by appropria tions, the

10

Administrator shall reimburse each development

11

company that does not collect a processing fee

12

pursuant to paragraph (1)(B). 13

(B) A

14

MOUNT .—The

payment to a develop-

ment company under subparagraph (A) shall be

15

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) T EMPORARY FEE E LIMINATION OF L ENDER O VERSIGHT FEES .—Until September 30, 2010, and to the extent the cost of such elimination in fees is offset by appropriations, the Administrator shall, in lieu of the fee otherwise applicable under section 5(b)(14) of the Small Business Act (15 U.S.C. 634(b)(14)), collect no fee. (d) A

PPLICATION OF FEE

E LIMINATIONS .—The Ad-

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2

1 2

ministrator shall eliminate fees under subsections (a), (b),

3

and (c) until the amount provided for such purposes, as

4

applicable, under the headings ‘‘Salaries and Expenses’’

5

and ‘‘Business Loans Program Account’’ under the 6 7 8 9 10 11

heading ‘‘Small Business Administration’’ under this Act are expended. S EC . 502. F PROVEMENTS .

INANCIAL

(a) 7(a) L

OAN

A SSISTANCE PROGRAM IM M AXIMUM A MOUNT .—Section

7(a)(3)(A) of the Small Business Act (15 U.S.C.

12 13 14 15

636(a)(3)(A)) is amended by striking ‘‘$1,500,000 (or if the gross loan amount would exceed $2,000,000)’’ and inserting ‘‘$2,250,000 (or if the gross loan amount would exceed $3,000,000)’’. (b) S MALL B USINESS INVESTMENT C OMPANIES .— (1) M AXIMUM LEVERAGE.—Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended— (A) in paragraph (2), by striking subparagraphs (A), (B), and (C) and inserting the following: ‘‘(A) IN GENERAL.—The maximum amount of outstanding leverage made available to any 1 company licensed under section 301(c) may not HR 1 PP

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2

1

exceed the lesser of—

2 3

‘‘(i) 300 percent of the private capital

4

of the company; or

5

‘‘(ii) $150,000,000. 6

‘‘(B) M

7

ULTIPLE LICENSES UNDER COMMON

8

CONTROL .—The

9

leverage made available to 2 or more companies

10

licensed under section 301(c) that are commonly

11

maximum amount of outstanding

controlled (as determined by the Administrator)

12

may not exceed $225,000,000. 13 14

‘‘(C) I NVESTMENTS IN LOW -INCOME GEO -

15

GRAPHIC AREAS .—

‘‘(i) I N GENERAL.—The maximum amount of outstanding leverage made available to— ‘‘(I) any 1 company described in clause (ii) may not exceed the lesser of— ‘‘(aa) 300 percent of private capital of the company; or ‘‘(bb) $175,000,000; and ‘‘(II) 2 or more companies described in clause (ii) that are commonly controlled

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2

1 2

(as determined by the Administrator)

3

may not exceed $250,000,000.

4

‘‘(ii) A

PPLICABILITY.—A

company de-

5

scribed in this clause is a company licensed 6

under section 301(c) that certifies in writing

7 8

that not less than 50 percent of the dollar

9

amount of investments of that company

10

shall be made in companies that are located

11

in a low-income geographic area (as that

12

term is defined in section 351).’’; and (B)

13

by striking paragraph (4).

14

(2) I NVESTMENTS IN SMALLER ENTERPRISES .—

15

Section 303(d) of the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to read as follows: ‘‘(d) I NVESTMENTS IN S MALLER E NTERPRISES .—The Administrator shall require each licensee, as a condition of approval of an application for leverage, to certify in writing that not less than 25 percent of the aggregate dollar amount of financings of that licensee shall be provided to smaller enterprises.’’. (3) M AXIMUM INVESTMENT IN A COMPANY.—Section 306(a) of the Small Business Investment Act of 1958 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(15 U.S.C. 686(a)) is amended by striking ‘‘20 per

3

centum’’ and inserting ‘‘30 percent’’.

4

(c) M AXIMUM 504 L OAN S IZE.—Section 502(2)(A) of

5

the Small Business Investment Act of 1958 (15 U.S.C. 6 7

696(2)(A)) is amended— (1) in clause (i), by striking ‘‘$1,500,000’’ and

8 9

inserting ‘‘$3,000,000’’;

10 11

(2) in clause (ii), by striking ‘‘$2,000,000’’ and inserting ‘‘$3,500,000’’; and

12

(3) in clause (iii), by striking ‘‘$4,000,000’’ and

13 14 15

inserting ‘‘$5,500,000’’. S EC . 503. L

OW -INTEREST

R EFINANCING . 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) P ERMISSIBLE DEBT FINANCING .—A financing under this title may include refinancing of existing indebtedness, in an amount not to exceed 50 percent of the projected cost of the project financed under this title, if— ‘‘(A) the project financed under this title involves the expansion of a small business concern; ‘‘(B) the existing indebtedness is collateralized by fixed assets; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(C) the existing indebtedness was incurred

2 3

for the benefit of the small business concern;

4

‘‘(D) the proceeds of the existing indebted-

5

ness were used to acquire land (including a 6

building situated thereon), to construct or expand

7

a building thereon, or to purchase equipment;

8 9

‘‘(E) the borrower has been current on all

10

payments due on the existing indebtedness for

11

not less than 1 year preceding the proposed date

12

of refinancing;

13

‘‘(F) the financing under this title will pro-

14

vide better terms or a better rate of interest than

15

exists on the existing indebtedness on the proposed date of refinancing; ‘‘(G) the financing under this title is not being used to refinance any debt guaranteed by the Government; and ‘‘(H) the financing under this title will be used only for— ‘‘(i) refinancing existing indebtedness; or ‘‘(ii) costs relating to the project financed under this title.’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

S EC . 504. D

EFINITIONS .

Under the heading ‘‘Small

Business Administration’’ in this title—

4

(1) the terms ‘‘Administration’’ and ‘‘Adminis-

5

trator’’ mean the Small Business Administration and 6 7

the Administrator thereof, respectively; (2) the term ‘‘development company’’ has the

8 9 10 11

meaning given the term ‘‘development companies’’ in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662); and

12

(3) the term ‘‘small business concern’’ has the

13 14 15

same meaning as in section 3 of the Small Business Act (15 U.S.C. 632). SEC. 505. SURETY BONDS.

(a) M

AXIMUM

B OND A MOUNT .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

officer of a Federal agency certifies that such a guarantee

3

is necessary.’’.

4

(b) S IZE S TANDARDS .—Section 410 of the Small Busi-

5

ness Investment Act of 1958 (15 U.S.C. 694a) is amended 6 7

by adding at the end the following: ‘‘(9) Notwithstanding any other provision of law

8 9 10 11

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

12 13 14 15

that meets the size standard for the primary industry in which such business concern, and the affiliates of such business concern, is engaged, as determined by the Administrator in accordance with the North American Industry Classification System.’’. (c) S

UNSET .—The

amendments made by this section

shall remain in effect until September 30, 2010. S EC . 506.—O FFICE OF INSPECTOR G ENERAL. For an additional amount for ‘‘Treasury Office of Inspector General for Tax Administration’’, $7,000,000, to remain available until September 30, 2012, for oversight and audit of programs grants and activities funded under this title. TITLE VI—DEPARTMENT OF HOMELAND SECURITY DEPARTMENT OF HOMELAND SECURITY HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

O FFICE OF THE U NDER S ECRETARY FOR M ANAGEMENT For an

3

additional amount for the ‘‘Office of the Under Secretary

4

for Management’’, $198,000,000, to remain available until

5

September 30, 2011, solely for planning, design, and 6 7

construction costs, including site security, information

8

technology infrastructure, fixtures, and related costs to

9

consolidate the Department of Homeland Security head-

10

quarters: Provided, That no later than 60 days after the

11

date of enactment of this Act, the Secretary of Homeland

12 13 14 15

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. C USTOMS AND B ORDER PROTECTION SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $198,000,000, to remain available until September 30, 2010, of which $100,800,000 shall be for HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the procurement and deployment of non-intrusive

3

inspection systems to improve port security; and of which

4

$97,200,000 shall be for procurement and deployment of

5

tactical communications equipment and radios: Provided, 6 7

That no later than 45 days after the date of enactment of

8

this Act, the Secretary of Homeland Security shall submit

9

to the Committees on Appropriations of the Senate and the

10 11

House of Representatives a plan for expenditure of these funds.

12 BORDER SECURITY FENCING , INFRASTRUCTURE , AND

13

TECHNOLOGY

14 15

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

For an additional amount for ‘‘Construction’’, $800,000,000, to remain available until expended, solely HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

for planning, management, design, alteration, and

3

construction of U.S. Customs and Border Protection owned

4

land border ports of entry: Provided, That no later than 45

5

days after the date of enactment of this Act, the Secretary 6 7

of Homeland Security shall submit to the Committees on

8

Appropriations of the Senate and the House of

9

Representatives a plan for expenditure of these funds.

10

U.S. IMMIGRATION AND C USTOMS E NFORCEMENT

11 12

AUTOMATION MODERNIZATION

For an additional amount for ‘‘Automation Mod-

13 14 15

ernization’’, $27,800,000, to remain available until September 30, 2010, for the procurement and deployment of tactical communications equipment and radios: Provided, That no later than 45 days after the date of enactment of this Act, the Secretary of Homeland Security shall submit to the Committees on Appropriations of the Senate and the House of Representatives a plan for expenditure of these funds. T RANSPORTATION S ECURITY A DMINISTRATION AVIATION SECURITY

For an additional amount for ‘‘Aviation Security’’, $1,000,000,000, to remain available until September 30, 2010, for procurement and installation of checked baggage HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

explosives detection systems and checkpoint explosives

3

detection equipment: Provided, That no later than 45 days

4

after the date of enactment of this Act, the Secretary of

5

Homeland Security shall submit to the Committees on 6 7

Appropriations of the Senate and the House of

8

Representatives a plan for the expenditure of these funds.

9

C OAST G UARD

10 11 12

ACQUISITION , CONSTRUCTION , AND IMPROVEMENTS

For an additional amount for ‘‘Acquisition, Construction, and Improvements’’, $450,000,000, to remain avail-

13 14 15

able until September 30, 2010, of which $195,000,000 shall be for shore facilities and aids to navigation facilities; and of which $255,000,000 shall be for priority procurements due to materials and labor cost increases, and to repair, renovate, assess, or improve vessels: Provided, That amounts made available for the activities under this heading shall be available for all necessary expenses related to the oversight and management of such activities: Provided further, That no later than 45 days after the date of enactment of this Act, the Secretary of Homeland Security shall submit to the Committees on Appropriations of the Senate and the House of Representatives a plan for the expenditure of these funds. HR 1 PP

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2

1

ALTERATION OF BRIDGES

2 3 4 5

For an additional amount for ‘‘Alteration of Bridges’’, $240,400,000, to remain available until September 30, 2010, for alteration or removal of

6

obstructive bridges, as authorized by section 6 of the 7 8 9

Truman-Hobbs Act (33 U.S.C. 516): Provided, That no later than 45 days after the date of enactment of this Act,

10

the Secretary of Homeland Security shall submit to the

11

Committees on Appropriations of the Senate and the

12

House of Representatives a plan for the expenditure of

13 14

these funds. FEDERAL E MERGENCY M ANAGEMENT A GENCY

15

MANAGEMENT AND ADMINISTRATION

For an additional amount for ‘‘Management and Administration’’, $6,000,000 for the acquisition of communications response vehicles to be deployed in response to a disaster or a national security event. STATE AND LOCAL PROGRAMS

For an additional amount for grants, $950,000,000, to be allocated as follows: (1) $100,000,000, to remain available until September 30, 2010, for Public Transportation Security Assistance, Railroad Security Assistance, and Sys HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

temwide Amtrak Security Upgrades under sections

3

1406, 1513, and 1514 of the Implementing Rec-

4

ommendations of the 9/11 Commission Act of 2007

5

(Public Law 110–53; 6 U.S.C. 1135, 1163, and 1164). 6

(2) $100,000,000, to remain available until Sep-

7 8

tember 30, 2010, for Port Security Grants in accord-

9

ance with 46 U.S.C. 70107, notwithstanding 46

10

U.S.C. 70107(c).

11

(3) $250,000,000, to remain available until Sep-

12 13 14 15

tember 30, 2010, for upgrading, modifying, or constructing emergency operations centers under section 614 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, notwithstanding section 614(c) of that Act or for upgrading, modifying, or constructing State and local fusion centers as defined by section 210A(j)(1) of the Homeland Security Act of 2002 (6 U.S.C. 124h(j)(1)). (4) $500,000,000 for construction to upgrade or modify critical infrastructure, as defined in section 1016(e) of the USA PATRIOT Act of 2001 (42 U.S.C. 5195c(e)), to mitigate consequences related to potential damage from all-hazards: Provided, That funds in this paragraph shall remain available until September HR 1 PP

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2

1 2

30, 2011: Provided further, That 5 percent shall be

3

for program administration: Provided fur ther, That

4

no later than 60 days after the date of enactment of

5

this Act, the Secretary of Homeland Security shall 6 7

submit to the Committees on Appropriations of the

8

Senate and the House of Representatives a plan for

9

expenditure of these funds.

10 11

FIREFIGHTER ASSISTANCE GRANTS

For an additional amount for competitive grants,

12

$500,000,000, to remain available until September 30, 13 14 15

2010, for modifying, upgrading, or constructing State and local fire stations: Provided, That up to 5 percent shall be for program administration: Provided further, That no grant shall exceed $15,000,000. DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

Notwithstanding section 417(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the amount of any such loan issued pursuant to this section for major disasters occurring in calendar year 2008 may exceed $5,000,000, and may be equal to not more than 50 percent of the annual operating budget of the local government in any case in which that local government has suffered a loss of 25 percent or more in tax revenues: Provided, That the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

cost of modifying such loans shall be as defined in section

3

502 of the Congressional Budget Act of 1974 (2 U.S.C.

4

661a).

5 EMERGENCY FOOD AND SHELTER

6 7

For an additional amount to carry out the emergency

8

food and shelter program pursuant to title III of the McKin-

9

ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et

10

seq.), $100,000,000: Provided, That total administrative

11

costs shall not exceed 3.5 percent of the total amount made

12

available under this heading. 13 14 15

FEDERAL L AW E NFORCEMENT T RAINING C ENTER ACQUISITION , CONSTRUCTION , IMPROVEMENTS , AND RELATED EXPENSES

For an additional amount for ‘‘Acquisition, Construction, Improvements, and Related Expenses’’, $15,000,000, to remain available until September 30, 2010, for security systems and law enforcement upgrades for all Federal Law Enforcement Training Center facilities: Provided, That no later than 45 days after the date of enactment of this Act, the Secretary of Homeland Security shall submit to the Committees on Appropriations of the Senate and the House of Representatives a plan for the expenditure of these funds. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

GENERAL PROVISIONS—THIS TITLE

2 3

S EC . 601. Notwithstanding any other provision of law,

4

the President shall establish an arbitration panel under the

5

Federal Emergency Management Agency public assistance

6 7

program to expedite the recovery efforts from Hurricanes

8

Katrina, Rita, Gustav, and Ike within the Gulf Coast Re

9

gion. The arbitration panel shall have sufficient authority

10 11

regarding the award or denial of disputed public assistance applications for covered hurricane damage under section

12

403, 406, or 407 of the Robert T. Stafford Disaster Relief 13 14 15

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. S EC . 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. HR 1 PP

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2

1 2

TITLE VII—INTERIOR, ENVIRONMENT, AND

3

RELATED AGENCIES DEPARTMENT OF THE

4

INTERIOR B UREAU OF L AND M ANAGEMENT

5 MANAGEMENT OF LANDS AND RESOURCES

6 7

For an additional amount for ‘‘Management of Lands

8

and Resources’’, $135,000,000, to remain available until

9

September 30, 2010.

10 CONSTRUCTION

11 12

For an additional amount for ‘‘Construction’’,

13

$180,000,000, to remain available until September

14

30, 2010.

15

WILDLAND FIRE MANAGEMENT

For an additional amount for ‘‘Wildland Fire Management’’, $15,000,000, to remain available until September 30, 2010. U NITED S TATES FISH AND W ILDLIFE S ERVICE RESOURCE MANAGEMENT

For an additional amount for ‘‘Resource Management’’, $165,000,000, to remain available until September 30, 2010. CONSTRUCTION

For an additional amount for ‘‘Construction’’, $110,000,000, to remain available until September HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

30, 2010.

3

N ATIONAL PARK S ERVICE

4 5

OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for ‘‘Operation of the Na-

6 7 8

tional Park System’’, $158,000,000, to remain available until September 30, 2010.

9 10

CONSTRUCTION

For an additional amount for ‘‘Construction’’,

11 12 13

$589,000,000, to remain available until September 30, 2010. U NITED S TATES G EOLOGICAL S URVEY SURVEYS ,

14 15

INVESTIGATIONS , AND RESEARCH

For an additional amount for

‘‘Surveys, Investigations, and Research’’, $135,000,000, to remain available until September 30, 2010. B UREAU OF INDIAN A FFAIRS OPERATION OF INDIAN PROGRAMS

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

For an additional amount for ‘‘Construction’’, $522,000,000, to remain available until September HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

30, 2010.

3 4 5

INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

For an additional amount for ‘‘Indian Guaranteed Loan Program Account’’, $10,000,000, to remain available

6 7

until September 30, 2010.

8

DEPARTMENTAL OFFICES

9

INSULAR A FFAIRS

10 ASSISTANCE TO TERRITORIES

11 12

For an additional amount for ‘‘Assistance to Terri-

13

tories’’, $62,000,000, to remain available until September

14

30, 2010.

15

O FFICE OF INSPECTOR G ENERAL SALARIES AND EXPENSES

For an additional amount for ‘‘Office of Inspector General’’, $7,600,000, to remain available until September 30, 2011, and an additional $7,400,000 for such purposes, to remain available until September 30, 2011. D EPARTMENT -W IDE PROGRAMS CENTRAL HAZARDOUS MATERIALS FUND

For an additional amount for ‘‘Central Hazardous Materials Fund’’, $20,000,000, to remain available until September 30, 2010. ENVIROMENTAL PROTECTION AGENCY HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

H AZARDOUS S UBSTANCE S UPERFUND

2 3 4 5

(INCLUDING TRANSFERS OF FUNDS)

For an additional amount for ‘‘Hazardous Substance Superfund’’, $600,000,000, to remain available until Sep-

6 7

tember 30, 2010, as a payment from general revenues to

8

the Hazardous Substance Superfund, to carry out remedial

9

actions: Provided, That the Administrator may retain up to

10 11

2 percent of the funds appropriated herein for Superfund remedial actions for program oversight and support pur-

12

poses, and may transfer those funds to other accounts as 13 14 15

needed. L EAKING U NDERGROUND S TORAGE T ANK T RUST FUND PROGRAM For an additional amount for ‘‘Leaking Underground Storage Tank Trust Fund Program’’, $200,000,0000, to remain available until September 30, 2010, for cleanup activities: Provided, That none of these funds shall be subject to cost share requirements. S TATE AND T RIBAL A SSISTANCE G RANTS (INCLUDING TRANSFERS OF FUNDS)

For an additional amount for ‘‘State and Tribal Assistance Grants’’, $6,400,000,000, to remain available until September 30, 2010, of which $4,000,000,000 shall be for making capitalization grants for the Clean Water HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

State Revolving Funds under title VI of the Federal Water

3

Pollution Control Act, as amended; of which

4

$2,000,000,000 shall be for making capitalization grants

5

for the Drinking Water State Revolving Fund under section 6 7

1452 of the Safe Drinking Water Act, as amended; of which

8

$100,000,000 shall be available for Brownfields

9

remediation grants pursuant to section 104(k)(3) of the

10 11

Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended; and of which

12 13 14 15

$300,000,000 shall be for Diesel Emission Reduction Act grants pursuant to title VII, subtitle G of the Energy Policy Act of 2005, as amended: Provided, That notwithstanding the priority ranking they would otherwise receive under each program, priority for funds appropriated herein for the Clean Water State Revolving Funds and Drinking Water State Revolving Funds (Revolving Funds) shall be allocated to projects that are ready to proceed to construction within 180 days of enactment of this Act: Provided further, That the Administrator of the Environmental Protection Agency (Administrator) may reallocate funds appropriated herein for the Revolving Funds that are not under binding commitments to proceed to construction within 180 days of enactment of this Act: HR 1 PP

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1 2

Provided further, That notwithstanding any other provision

3

of law, financial assistance provided from funds appro-

4

priated herein for the Revolving Funds may include addi-

5

tional subsidization, including forgiveness of principal and 6 7

negative interest loans: Provided further, That not less

8

than 15 percent of the funds appropriated herein for the

9

Revolving Funds shall be designated for green

10 11

infrastructure, water efficiency improvements or other environmentally innovative projects: Provided further,

12 13 14 15

That notwithstanding the limitation on amounts specified in section 518(c) of the Federal Water Pollution Control Act, up to a total of 1.5 percent of the funds appropriated herein for the Clean Water State Revolving Funds may be reserved by the Administrator for tribal grants under section 518(c) of such Act: Provided further, That section 1452(k) of the Safe Drinking Water Act shall not apply to amounts appropriated herein for the Drinking Water State Revolving Funds: Provided further, That the Administrator may exceed the 30 percent limitation on State grants for funds appropriated herein for Diesel Emission Reduction Act grants if the Administrator determines such action will expedite allocation of funds: Provided further, That none of the funds appropriated herein shall be subject to cost share HR 1 PP

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1

2

2

requirements: Provided further, That the Administrator

3

may retain up to 0.25 percent of the funds appropriated

4

herein for the Clean Water State Revolving Funds and

5

Drinking Water State Revolving Funds and up to 1.5 per6 7

cent of the funds appropriated herein for the Diesel Emis-

8

sion Reduction Act grants program for program oversight

9

and support purposes and may transfer those funds to

10

other accounts as needed.

11

DEPARTMENT OF AGRICULTURE

12

FOREST S ERVICE

13

CAPITAL IMPROVEMENT AND MAINTENANCE

14 15

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

For an additional amount for ‘‘Wildland Fire Management’’, $485,000,000, to remain available until September 30, 2010, for hazardous fuels reduction and hazard mitigation activities in areas at high risk of catastrophic wildfire, of which $260,000,000 is available for work on State and private lands using all the authorities available HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to the Forest Service: Provided, That of the funds provided

3

for State and private land fuels reduction activities, up to

4

$50,000,000 may be used to make grants for the purpose

5

of creating incentives for increased use of biomass from 6 7

national forest lands.

8

DEPARTMENT OF HEALTH AND HUMAN

9

SERVICES INDIAN H EALTH S ERVICE

10 11

INDIAN HEALTH SERVICES

For an additional amount for ‘‘Indian Health Serv-

12

ices’’, $135,000,000, to remain available until September 13 14 15

30, 2010, of which $50,000,000 is for contract health services; and of which $85,000,000 is for health information technology: Provided, That the amount made available for health information technology activities may be used for both telehealth services development and related infrastructure requirements that are typically funded through the ‘‘Indian Health Facilities’’ account: Provided further, That notwithstanding any other provision of law, health information technology funds provided within this title shall be allocated at the discretion of the Director of the Indian Health Service. INDIAN HEALTH FACILITIES

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1

2

2

ties’’, $410,000,000, to remain available until September

3

30, 2010: Provided, That for the purposes of this Act,

4

spending caps included within the annual appropriation for

5

‘‘Indian Health Facilities’’ for the purchase of medical 6 7

equipment shall not apply.

8

SMITHSONIAN INSTITUTION

9

FACILITIES C APITAL

10 11

For an additional amount for ‘‘Facilities Capital’’, $75,000,000, to remain available until September 30, 2010.

12

GENERAL PROVISIONS—THIS TITLE

13

S EC . 701. (a) Within 30 days of enactment of this Act,

14 15

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 Com mittees a report containing detailed project level information associated with the general plan submitted pursuant

to

subsection (a). S EC . 702. In carrying out the work for which funds in this title are being made available, the Secretary of the Interior and the Secretary of Agriculture may utilize the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Public Lands Corps, Youth Conservation Corps, Job Corps

3

and other related partnerships with Federal, State, local,

4

tribal or non-profit groups that serve young adults. TITLE

5

VIII—DEPARTMENTS OF LABOR, HEALTH AND 6 7 8

HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES

9 10

DEPARTMENT OF LABOR E MPLOYMENT AND T RAINING A DMINISTRATION

11

TRAINING AND EMPLOYMENT SERVICES

12

For an additional amount for ‘‘Training and Employ13 14 15

ment Services’’ for activities authorized by the Workforce Investment Act of 1998 (‘‘WIA’’), $3,250,000,000, which shall be available on the date of enactment of this Act, as follows: (1) $500,000,000 for adult employment and training activities, including supportive services and needs-related payments described in section 134(e)(2) and (3) of the WIA: Provided, That a priority use of these funds shall be services to individuals described in 134(d)(4)(E) of the WIA; (2) $1,200,000,000 for grants to the States for youth activities, including summer employment for youth: Provided, That no portion of such funds shall HR 1 PP

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2

1 2

be reserved to carry out section 127(b)(1)(A) of the

3

WIA: Provided further, That for purposes of section

4

127(b)(1)(C)(iv) of the WIA, funds available for youth

5

activities shall be allotted as if the total amount 6 7

available for youth activities in the fiscal year does

8

not exceed $1,000,000,000: Provided further, That,

9

with respect to the youth activities provided with such

10

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

11

by substituting ‘‘age 24’’ for ‘‘age 21’’: Provided fur-

12 13 14 15

ther, That the work readiness performance indicator described in section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of performance used to assess the effectiveness of youth activities provided with such funds; (3) $1,000,000,000 for grants to the States for dislocated worker employment and training activities; (4) $200,000,000 for national emergency grants; (5) $250,000,000 under the dislocated worker national reserve for a program of competitive grants for worker training in high growth and emerging indus try sectors and assistance under 132(b)(2)(A) of the WIA: Provided, That the Secretary of Labor shall give priority when awarding such grants to projects that HR 1 PP

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prepare workers for careers in energy efficiency and

3

renewable energy as described in section 171(e)(1)(B)

4

of the WIA and for careers in the health care sector;

5

and 6

(6) $100,000,000 for YouthBuild activities as de-

7 8

scribed in section 173A of the WIA: Provided, That

9

for program years 2008 and 2009, the YouthBuild

10

program may serve an individual who has dropped

11

out of high school and re-enrolled in an alternative

12 13 14

school, if that re-enrollment is part of a sequential service strategy: Provided, That funds made available in this

15

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

an

additional amount for ‘‘Community Service Employment for Older Americans’’ for carrying out title

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V of the Older

2

1 2 3

Americans Act of 1965, $120,000,000, which

shall be

available on the date of enactment of this Act and shall

4 5 6 7

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

8 9 10 11

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

12 13

recaptured and reobligated.

14

STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

15

SERVICE OPERATIONS

For an additional amount for ‘‘State Unemployment Insurance and Employment Service Operations’’ for grants to States in accordance with section 6 of the Wagner-Peyser Act, $400,000,000, which may be expended from the Employment Security Administration account in the Unemployment Trust Fund: Provided, That such funds shall be available on the date of enactment of this Act and remain available to the States through September 30, 2010: Provided further, That $250,000,000 of such funds shall be used by States for reemployment services for unemployment insurance claimants (including HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

the integrated Employment Service and Unemployment

3

Insurance information technology required to identify and

4

serve the needs of such claimants): Provided further, That

5

the Secretary of Labor shall establish planning and 6 7 8

reporting procedures necessary to provide oversight of funds used for reemployment services.

9

D EPARTMENTAL M ANAGEMENT

10 11 12

OFFICE OF JOB CORPS

For an additional amount for ‘‘Office of Job Corps’’ for construction, alteration and repairs of buildings and

13 14 15

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

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2

1 2 3 4

For an additional amount for the ‘‘Office of Inspector General’’, $3,000,000, which shall remain available through September 30, 2011, for salaries and expenses

5

necessary for oversight and audit of programs, grants, and 6 7 8

projects funded in this Act and administered by the Department of Labor.

9

DEPARTMENT OF HEALTH AND HUMAN 10

SERVICES H EALTH R ESOURCES AND S ERVICES

11 12

A DMINISTRATION

13

HEALTH RESOURCES AND SERVICES

14 15

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

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2

1 2 3 4

C ENTERS FOR D ISEASE C ONTROL AND PREVENTION DISEASE CONTROL , RESEARCH , AND TRAINING

For an additional amount

for ‘‘Disease Control, Research, and Training’’ for

5

acquisition of real property, equipment, construction, and 6 7

renovation of facilities, including necessary repairs and

8

improvements to leased laboratories, $412,000,000, which

9

shall remain available through September 30, 2010:

10 11

Provided, That notwithstanding any other provision of law, the Centers for Disease Control and Prevention may

12 13 14 15

award a single contract or related contracts for development and construction of facilities that collectively include the full scope of the project: Provided further, That the solicitation and contract shall contain the clause ‘‘availability of funds’’ found at 48 CFR 52.232–18. N ATIONAL INSTITUTES OF H EALTH NATIONAL CENTER FOR RESEARCH RESOURCES

For an additional amount for ‘‘National Center for Research Resources’’, $300,000,000, which shall be available through September 30, 2010, for shared instrumentation and other capital research equipment. OFFICE OF THE DIRECTOR (INCLUDING TRANSFER OF FUNDS)

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2

1 2

Director’’, $2,700,000,000, which shall be available

3

through September 30, 2010: Provided, That

4

$1,350,000,000 shall be transferred to the Institutes and

5

Centers of the National Institutes of Health and to the 6 7

Common Fund established under section 402A(c)(1) of the

8

Public Health Service Act in proportion to the

9

appropriations otherwise made to such Institutes, Centers,

10

and Common Fund for fiscal year 2009: Provided further,

11

That these funds shall be used to support additional

12 13 14 15

scientific research and shall be merged with and be available for the same purposes as the appropriation or fund to which transferred: Provided further, That this transfer authority is in addition to any other transfer authority available to the National Institutes of Health: Provided further, That none of these funds may be transferred to ‘‘National Institutes of Health—Buildings and Facilities’’, the Center for Scientific Review, the Center for Information Technology, the Clinical Center, the Global Fund for HIV/AIDS, Tuberculosis and Malaria, or the Office of the Director (except for the transfer to the Common Fund). The additional amount available for ‘Office of the Director’ in the previous sentence shall be increased by HR 1 PP

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1

2

2

$6,500,000,000: Provided, That a total of $7,850,000,000

3

shall be transferred pursuant to such sentence: Provided

4

further, That any amounts in this sentence shall be

5

designated as an emergency requirement and necessary to 6 7

meet emergency needs pursuant to section 204(a) of S.

8

Con. Res. 21 (110th Congress) and section 301(b)(2) of S.

9

Con. Res. 70 (110th Congress), the concurrent resolutions

10

on the budget for fiscal years 2008 and 2009.

11

BUILDINGS AND FACILITIES

12

For an additional amount for ‘‘Buildings and Facili13 14 15

ties’’, $500,000,000, which shall be available through September 30, 2010, to fund high-priority repair, construction and improvement projects for National Institutes of Health

facilities on the Bethesda, Maryland campus and other agency locations. A GENCY FOR H EALTHCARE R ESEARCH AND Q UALITY 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, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Improvement, and Modernization Act of 2003,

3

$700,000,000 for comparative clinical effectiveness

4

research, which shall remain available through September

5

30, 2010: Provided, That of the amount appropriated in 6 7

this paragraph, $400,000,000 shall be transferred to the

8

Office of the Director of the National Institutes of Health

9

(‘‘Office of the Director’’) to conduct or support

10 11

comparative clinical effectiveness research under section 301 and title IV of the Public Health Service Act: Provided

12 13 14 15

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 avail able in this paragraph for the Agency for Healthcare Research and Quality, not more than 1 percent shall be made available for additional full-time equivalents. In addition, $400,000,000 shall be available for comparative clinical effectiveness research to be allocated at the discretion of the Secretary of Health and Human HR 1 PP

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1 2

Services (‘‘Secretary’’) and shall remain available

3

through September 30, 2010: Provided, That the funding

4

appropriated in this paragraph shall be used to accelerate

5

the development and dissemination of research assessing 6 7

the comparative clinical effectiveness of health care

8

treatments and strategies, including through efforts that:

9

(1) conduct, support, or synthesize research that compares

10

the clinical outcomes, effectiveness, and appropriateness of

11

items, services, and procedures that are used to prevent,

12 13 14 15

diagnose, or treat diseases, disorders, and other health conditions and (2) encourage the development and use of clinical registries, clinical data networks, and other forms of electronic health data that can be used to generate or obtain outcomes data: Provided further, That the Secretary shall enter into a contract with the Institute of Medicine, for which no more than $1,500,000 shall be made available from funds provided in this paragraph, to produce and submit a report to the Congress and the Secretary by not later than June 30, 2009 that includes recommendations on the national priorities for comparative clinical effectiveness research to be conducted or supported with the funds provided in this paragraph and that considers input from stakeholders: Provided further, HR 1 PP

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2

1 2

That the Secretary shall consider any recommendations of

3

the Federal Coordinating Council for Comparative

4

Clinical Effectiveness Research established by section 802

5

of this Act and any recommendations included in the Insti6 7

tute of Medicine report pursuant to the preceding proviso

8

in designating activities to receive funds provided in this

9

paragraph and may make grants and contracts with appro-

10 11

priate entities, which may include agencies within the Department of Health and Human Services and other govern-

12 13 14 15

mental agencies, as well as private sector entities, that have demonstrated experience and capacity to achieve the goals of comparative clinical effectiveness research: Provided further, That the Secretary shall publish information on grants and contracts awarded with the funds provided under this heading within a reasonable time of the obligation of funds for such grants and contracts and shall disseminate research findings from such grants and contracts to clinicians, patients, and the general public, as appropriate: Provided further, That, to the extent feasible, the Secretary shall ensure that the recipients of the funds provided by this paragraph offer an opportunity for public comment on the research: Provided further, That the Secretary shall provide the Committees HR 1 PP

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2

1 2

on Appropriations of the House of Representatives and the

3

Senate, the Committee on Energy and Commerce and the

4

Committee on Ways and Means of the House of

5

Representatives, and the Committee on Health, Education, 6 7

Labor, and Pensions and the Committee on Finance of the

8

Senate with an annual report on the research conducted or

9

supported through the funds provided under this heading.

10

A DMINISTRATION FOR C HILDREN AND FAMILIES

11

PAYMENTS TO STATES FOR THE CHILD CARE AND

12 DEVELOPMENT BLOCK GRANT

13 14 15

For an additional amount for ‘‘Payments to States for the Child Care and Development Block Grant’’ for carrying out the Child Care and Development Block Grant Act of 1990, $2,000,000,000, which shall remain available through September 30, 2010: Provided, That funds provided under this heading shall be used to supplement, not supplant State general revenue funds for child care assistance for low-income families: Provided further, That, in addition to the amounts required to be reserved by the States under section 658G of such Act, $255,186,000 shall be reserved by the States for activities authorized under section 658G, of which $93,587,000 shall be for activities that improve the quality of infant and toddler care. HR 1 PP

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2

1

SOCIAL SERVICES BLOCK GRANT

2 3 4 5

For an additional amount for ‘‘Social Services Block Grant,’’ $400,000,000: Provided, That notwithstanding section 2003 of the Social Security Act, funds shall be

6

allocated to States on the basis of unemployment: 7 8 9 10

Provided further, That these funds shall be obligated to States within 60 calendar days from the date they become available for obligation.

11 12

CHILDREN AND FAMILIES SERVICES PROGRAMS

For an additional amount for ‘‘Children and Families

13

Services Programs’’ for carrying out activities under the 14 15

Head Start Act, $500,000,000, which shall remain available through September 30, 2010. In addition, $550,000,000, which shall remain available through September 30, 2010, is hereby appropriated for expansion of Early Head Start programs, as described in section 645A of such Act: Provided, That of the funds provided in this sentence, up to 10 percent shall be available for the provision of training and technical assistance to such programs consistent with section 645A(g)(2) of such Act, and up to 3 percent shall be available for monitoring the operation of such programs consistent with section 641A of such Act. HR 1 PP

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2

1 2 3 4

For an additional amount for ‘‘Children and Families Services Programs’’ for carrying out activities under sections 674 through 679 of the Community Services Block

5

Grant Act, $200,000,000, which shall remain available 6 7

through September 30, 2010: Provided, That of the funds

8

provided under this paragraph, no part shall be subject to

9

paragraph (3) of section 674(b) of such Act: Provided fur-

10

ther, That not less than 5 percent of the funds allotted to a

11

State from the appropriation under this paragraph shall be

12 13 14 15

used under section 675C(b)(1) for benefits enrollment coordination activities relating to the identification and enrollment of eligible individuals and families in Federal, State and local benefit programs. A DMINISTRATION ON A GING AGING SERVICES PROGRAMS

For an additional amount for ‘‘Aging Services Programs,’’ $100,000,000, of which $67,000,000 shall be for Congregate Nutrition Services and $33,000,000 shall be for Home-Delivered Nutrition Services: Provided, That these funds shall remain available through September 30, 2010. O FFICE OF THE S ECRETARY OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

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2

1

INFORMATION TECHNOLOGY

2 3

(INCLUDING TRANSFER OF FUNDS)

4

For an additional amount for ‘‘Office of the National

5 6

Coordinator for Health Information Technology’’, $3,000,000,000, to carry out title XIII of this Act which

7 8

shall be available until expended: Provided, That of this

9

amount, the Secretary of Health and Human Services shall

10

transfer $20,000,000 to the Director of the National Insti-

11

tute of Standards and Technology in the Department of

12

Commerce for continued work on advancing health care

13

information enterprise integration through activities such 14 15

as technical standards analysis and establishment of conformance testing infrastructure so long as such activities are coordinated with the Office of the National Coordinator for Health Information Technology: Provided further, That funds available under this heading shall become available for obligation only upon submission of an annual operating plan by the Secretary to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, HR 1 PP

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1

2

2

and unobligated balances for each major set of activities

3

not later than November 1, 2009 and every 6 months

4

thereafter as long as funding under this heading is

5

available for obligation or expenditure. 6 OFFICE OF THE INSPECTOR GENERAL

7 8

For an additional amount for the Office of the Inspec-

9

tor General, $4,000,000 which shall remain available until

10 11

September 30, 2012, and an additional $15,000,000 for such purposes, to remain available until

12

September 30, 2012. 13

DEPARTMENT OF EDUCATION

14

E DUCATION FOR THE D ISADVANTAGED

15

For an additional amount for carrying out title I of the Elementary and Secondary Education Act of 1965, $12,400,000,000, which shall be available through September 30, 2010: Provided, That $5,500,000,000 shall be for targeted grants under section 1125, $5,500,000,000 shall be for education finance incentive grants under section 1125A, and $1,400,000,000 shall be for school improvement grants under section 1003(g): Provided further, That each local educational agency receiving funds available under this paragraph for sections 1125 and 1125A shall use not less than 15 percent of such funds HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

for activities serving children who are eligible pursuant to

3

section 1115(b)(1)(A)(ii) and programs in section

4

1112(b)(1)(K): Provided further, That each local

5

educational agency receiving funds available under this 6 7

paragraph shall be required to file with the State

8

educational agency, no later than December 1, 2009, a

9

school-by-school listing of per-pupil educational expendi-

10

tures from State and local sources during the 2008–2009

11

academic year.

12

S CHOOL IMPROVEMENT PROGRAMS

13 14 15

For an additional amount for ‘‘School Improvement Programs,’’ $1,070,000,000, which shall be available through September 30, 2010, for carrying out activities authorized by part D of title II of the Elementary and Secondary Education Act of 1965, and subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (‘‘McKinney-Vento’’): Provided, That the Secretary shall allot $70,000,000 for grants under McKinney-Vento to each State in proportion to the number of homeless students identified by the State during the 2007–2008 school year relative to the number of such children identified nationally during that school year: Provided further, That State educational agencies shall subgrant the HR 1 PP

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2

1 2

McKinney-Vento funds to local educational agencies on a

3

competitive basis or according to a formula based on the

4

number of homeless students identified by the local

5

educational agencies in the State: Provided further, That 6 7

the Secretary shall distribute the McKinney-Vento funds to

8

the States not later than 60 days after the date of the

9

enactment of this Act: Provided further, That each State

10 11

shall subgrant the McKinney-Vento funds to local educational agencies not later than 120 days after

12 13

receiving its grant from the Secretary.

14 15

SPECIAL EDUCATION

For an additional amount for ‘‘Special Education’’ for carrying out parts B and C of the Individuals with Disabilities Education Act (‘‘IDEA’’), $13,500,000,000, which shall remain available through September 30, 2010: Provided, That if every State, as defined by section 602(31) of the IDEA, reaches its maximum allocation under section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, such funds shall be proportionally allocated to each State subject to the maximum amounts contained in section 611(a)(2) of the IDEA: Provided further, That by July 1, 2009, the Secretary of Education shall reserve the amount needed for grants under section 643(e) of the IDEA, with HR 1 PP

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1

2

2

any remaining funds to be allocated in accordance with

3

section 643(c) of the IDEA: Provided further, That the

4

amount for section 611(b)(2) of the IDEA shall be equal to

5

the lesser of the amount available for that activity during 6 7

fiscal year 2008, increased by the amount of inflation as

8

specified in section 619(d)(2)(B), or the percentage

9

increase in the funds appropriated under section 611(i):

10 11

Provided further, That each local educational agency receiving funds available under this paragraph for part B

12 13 14 15

shall use not less than 15 percent for special education and related services to children described in section 619(a) of the IDEA. R EHABILITATION S ERVICES AND D ISABILITY R ESEARCH For an additional amount for ‘‘Rehabilitation Services and Disability Research’’ for providing grants to States to carry out the Vocational Rehabilitation Services program under part B of title I and parts B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation Act of 1973, $610,000,000, which shall remain available through September 30, 2010: Provided, That $500,000,000 shall be available for part B of title I of the Rehabilitation Act: Provided further, That funds provided herein shall not be con-

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1

2

2

sidered in determining the amount required to be appro-

3

priated under section 100(b)(1) of the Rehabilitation Act of

4

1973 in any fiscal year: Provided further, That, notwith-

5

standing section 7(14)(A), the Federal share of the costs of 6 7 8

vocational rehabilitation services provided with the funds provided herein shall be 100 percent.

9

S TUDENT FINANCIAL A SSISTANCE

10

For an additional amount for ‘‘Student Financial As-

11

sistance’’ to carry out subpart 1 of part A of title IV of the

12

Higher Education Act of 1965, $13,869,000,000: Provided, 13 14 15

That such funds shall be used to increase the maximum Pell Grant by $281 for award year 2009–2010, to increase the maximum Pell Grant by $400 for the award year 2010–2011, and to reduce or eliminate the Pell Grant shortfall: Provided further, That these funds shall remain available through September 30, 2011. For an additional amount for ‘‘Student Financial Assistance’’ to carry out part E of title IV of the Higher Education Act of 1965, $61,000,000: Provided, That these funds shall remain available through September 30, 2010. H IGHER E DUCATION For an additional amount for ‘‘Higher Education’’ for carrying out activities under part A of title II of the Higher HR 1 PP

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2

1 2

Education Act of 1965, $50,000,000: Provided, That these

3

funds shall remain available through September 30, 2010.

4

D EPARTMENTAL M ANAGEMENT

5 OFFICE OF THE INSPECTOR GENERAL

6 7 8

For an additional amount for the ‘‘Office of the Inspector General’’, $4,000,000, which shall remain

9

available through September 30, 2012, for salaries and

10

expenses necessary for oversight and audit of programs,

11

grants, and projects funded in this Act and administered

12

by the Department of Education and an additional

13 14 15

$10,000,000 for such purposes, to remain available until September 30, 2012.

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2

1 2

RELATED AGENCIES CORPORATION FOR NATIONAL

3

AND COMMUNITY SERVICE O PERATING E XPENSES

4 5

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Operating Expenses’’

6 7

to carry out the Domestic Volunteer Service Act of 1973

8

(‘‘1973 Act’’) and the National and Community Service Act

9

of 1990 (‘‘1990 Act’’), $160,000,000, to remain available

10

through September 30, 2010: Provided, That funds made

11

available in this paragraph may be used to provide adjust-

12

ments to awards under subtitle C of title I of the 1990 Act 13 14 15

made prior to September 30, 2010 for which the Chief Executive Officer of the Corporation for National and Community Service (‘‘CEO’’) determines that a waiver of the Federal share limitation is warranted under section 2521.70 of title 45 of the Code of Federal Regulations: Provided further, That of the amount made available in this paragraph, not less than $6,000,000 shall be transferred to ‘‘Salaries and Expenses’’ for necessary expenses relating to information technology upgrades: Provided further, That of the amount provided in this paragraph, $10,000,000 shall be available for additional members in the Civilian Community Corps authorized under subtitle E of title I of the 1990 Act: Provided further, That of the HR 1 PP

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1

2

2

amount provided in this paragraph, $1,000,000 shall be

3

made available for a one- time supplement grant to State

4

commissions on national and community service under

5

section 126(a) of the 1990 Act without regard to the 6 7

limitation on Federal share under section 126(a)(2) of the

8

1990 Act: Provided further, That of the amount made

9

available in this paragraph, not less than $13,000,000

10 11

shall be for research activities authorized under subtitle H of title I of the 1990 Act: Provided further, That of the

12 13 14 15

amount made available in this paragraph, not less than $65,000,000 shall be for programs under title I, part A of the 1973 Act: Provided further, That funds provided in the previous proviso shall not be made available in connection with cost-share agreements authorized under section 192A(g)(10) of the 1990 Act: Provided further, That of the funds available under this heading, up to 20 percent of funds allocated to grants authorized under section 124(b) of title I, subtitle C of the 1990 Act may be used to administer, reimburse, or support any national service program under section 129(d)(2) of the 1990 Act: Provided further, That, except as provided herein and in addition to requirements identified herein, funds provided in this paragraph shall be subject to the terms and conditions under which HR 1 PP

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2

1 2

funds were appropriated in fiscal year 2008: Provided fur-

3

ther, That the CEO shall provide the Committees on Appro-

4

priations of the House of Representatives and the Senate a

5

fiscal year 2009 operating plan for the funds appropriated 6 7

in this paragraph prior to making any Federal obligations

8

of such funds in fiscal year 2009, but not later than 90

9

days after the date of enactment of this Act, and a fiscal

10

year 2010 operating plan for such funds prior to making

11

any Federal obligations of such funds in fiscal year 2010,

12 13 14 15

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. O FFICE OF THE INSPECTOR G ENERAL For an additional amount for the Office of the Inspector General, $1,000,000, which shall remain available until HR 1 PP

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1 2

September 30, 2011.

3

N ATIONAL S ERVICE T RUST

4 5

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘National Service

6 7 8

Trust’’ established under subtitle D of title I of the National and Community Service Act of 1990 (‘‘1990 Act’’),

9

$40,000,000, which shall remain available until expended:

10

Provided, That the Corporation for National and Commu-

11

nity Service may transfer additional funds from the amount

12

provided within ‘‘Operating Expenses’’ for grants made

13 14 15

under subtitle C of title I of the 1990 Act to this appropriation upon determination that such transfer is necessary to support the activities of national service participants and after notice is transmitted to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, the amount appropriated for or transferred to the National Service Trust may be invested under section 145(b) of the 1990 Act without regard to the requirement to apportion funds under 31 U.S.C. 1513(b). SOCIAL SECURITY ADMINISTRATION L IMITATION ON A DMINISTRATIVE E XPENSES (INCLUDING TRANSFER OF FUNDS)

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1

2

2

istrative Expenses’’, $890,000,000 shall be available as

3

follows:

4

(1) $750,000,000 shall remain available until ex-

5

pended for necessary expenses of the replacement of 6 7

the National Computer Center and the information

8

technology costs associated with such Center: Pro-

9

vided, That the Commissioner of Social Security shall

10

notify the Committees on Appropriations of the House

11

of Representatives and the Senate not later than 10

12 13 14 15

days prior to each public notice soliciting bids related to site selection and construction: Provided further, That unobligated balances of funds not needed for this purpose may be used as described in subparagraph (2); and (2) $140,000,000 shall be available through September 30, 2010 for information technology acquisitions and research, which may include research and activities to facilitate the adoption of electronic medical records in disability claims and the transfer of funds to ‘‘Supplemental Security Income’’ to carry out activities under section 1110 of the Social Security Act: Provided further, That not later than 10 days prior to the obligation of such funds, the ComHR 1 PP

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2

1 2

missioner shall provide to the Committees on Appro-

3

priations of the House of Representatives and the

4

Senate an operating plan describing the planned uses

5

of such funds. 6

O FFICE OF INSPECTOR G ENERAL

7 8 9 10 11

For an additional amount for the ‘‘Office of Inspector General’’, $3,000,000, which shall remain available through September 30, 2012, for salaries and expenses necessary for oversight and audit of programs, projects,

12

and activities funded in this Act and administered by the 13 14

Social Security Administration. GENERAL PROVISIONS—THIS TITLE

15

S EC . 801. R

EPORT ON THE IMPACT OF PAST AND

FUTURE

M INIMUM W AGE INCREASES . (a) I N G ENERAL.—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.

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2

1 2

territory is $7.25 per hour, the Government Accountability

3

Office shall conduct a study to—

4

‘‘(1) assess the impact of the minimum wage in-

5

creases that occurred in American Samoa and the 6 7

Commonwealth of the Northern Mariana Islands in

8

2007 and 2008, as required under Public Law 110–

9

28, on the rates of employment and the living stand-

10

ards of workers, with full consideration of the other

11

factors that impact rates of employment and the living

12 13 14

standards of workers such as inflation in the cost of food, energy, and other commodities; and ‘‘(2) estimate the impact of any further wage in-

15

creases 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) R EPORT .—No earlier than March 15, 2009, and not later than April 15, 2009, the Government AccountHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ability Office shall transmit its first report to Congress con-

3

cerning the findings of the study required under subsection

4

(a). The Government Accountability Office shall transmit

5

any subsequent reports to Congress concerning the 6 7 8 9 10 11

findings of a study required by subsection (a) between March 15 and April 15 of each year. ‘‘(c) E

CONOMIC INFORMATION .—To

provide sufficient

economic data for the conduct of the study under subsection (a)—

12

‘‘(1) the Department of Labor shall include and

13 14 15

separately report on American Samoa and the Commonwealth of the Northern Mariana Islands in its household surveys and establishment surveys; ‘‘(2) the Bureau of Economic Analysis of the Department of Commerce shall include and separately report on American Samoa and the Commonwealth of the Northern Mariana Islands in its gross domestic product data; and ‘‘(3) the Bureau of the Census of the Department of Commerce shall include and separately report on American Samoa and the Commonwealth of the Northern Mariana Islands in its population estimates and demographic profiles from the American Community HR 1 PP

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2

1 2

Survey, with the same regularity and to the same extent as

3

the Department or each Bureau collects and reports such

4

data for the 50 States. In the event that the inclusion of

5

American Samoa and the Commonwealth of the Northern 6 7

Mariana Islands in such surveys and data compilations

8

requires time to structure and implement, the Department

9

of Labor, the Bureau of Economic Analysis, and the

10 11

Bureau of the Census (as the case may be) shall in the interim annually report the best available data that can

12 13 14 15

feasibly be secured with respect to such territories. Such interim reports shall describe the steps the Department or the respective Bureau will take to improve future data collection in the territories to achieve comparability with the data collected in the United States. The Department of Labor, the Bureau of Economic Analysis, and the Bureau of the Census, together with the Department of the Interior, shall coordinate their efforts to achieve such improvements.’’. (b) E FFECTIVE D ATE .—The amendment made by this section shall take effect on the date of enactment of this Act. S EC . 802. F

EDERAL

C OORDINATING C OUNCIL FOR

C OMPARATIVE C LINICAL E FFECTIVENESS R ESEARCH . (a) HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

E STABLISHMENT .—There is hereby established a Federal

3

Coordinating Council for Comparative Clinical Effective-

4

ness Research (in this section referred to as the

5

‘‘Council’’). 6 7

(b) PURPOSE; D UTIES .—The Council shall— (1) assist the offices and agencies of the Federal

8 9 10 11

Government, including the Departments of Health and Human Services, Veterans Affairs, and Defense, and other Federal departments or agencies, to coordi-

12

nate the conduct or support of comparative clinical 13 14

effectiveness and related health services research; and

15

(2) advise the President and Congress on— (A) strategies with respect to the infrastructure needs of comparative clinical effectiveness research within the Federal Government; (B) appropriate organizational expenditures for comparative clinical effectiveness research by relevant Federal departments and agencies; and (C) opportunities to assure optimum coordination of comparative clinical effectiveness and related health services research conducted or HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

supported by relevant Federal departments and

3

agencies, with the goal of reducing duplicative ef-

4

forts and encouraging coordinated and com-

5

plementary use of resources. 6 7

(c) M EMBERSHIP.— (1) N

8 9 10 11

UMBER 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

12

by the President, acting through the Secretary of 13 14 15

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) M EMBERS .— (A) I N 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. HR 1 PP

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2

1

(iv) The Office of the National Coordi-

2 3

nator for Health Information Technology.

4

(v) The Food and Drug Administration.

5

(vi) The Veterans Health Administration 6

within the Department of Veterans Affairs.

7 8

(vii) The office within the Department

9

of Defense responsible for management of

10

the Department of Defense Military Health

11

Care System.

12

(B) Q

13

UALIFICATIONS .—At

least half of the

members of the Council shall be physicians or

14

other experts with clinical expertise.

15

(3) C

HAIRMAN ; VICE CHAIRMAN .—The

Secretary

shall serve as Chairman of the Council and shall designate a member to serve as Vice Chairman. (d) R EPORTS .— (1) I NITIAL REPORT .—Not later than June 30, 2009, the Council shall submit to the President and the Congress a report containing information describing Federal activities on comparative clinical effectiveness research and recommendations for additional investments in such research conducted or supported from funds made available for allotment by the SecHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

retary for comparative clinical effectiveness research

3

in this Act.

4

(2) A NNUAL REPORT .—The Council shall submit to

5

the President and Congress an annual report re6 7

garding its activities and recommendations con-

8

cerning the infrastructure needs, appropriate organi-

9

zational expenditures and opportunities for better co-

10 11

ordination of comparative clinical effectiveness research by relevant Federal departments and agencies.

12 13 14 15

(e) S TAFFING ; S UPPORT .—From funds made available for allotment by the Secretary for comparative clinical effectiveness research in this Act, the Secretary shall make available not more than 1 percent to the Council for staff and administrative support. (TRANSFER OF FUNDS)

S EC . 803. (a) Not more than 1 percent of the funds made available to the Department of Labor in this title may be transferred by the Secretary of Labor to ‘‘Employment and Training Administration—Program Administration’’, ‘‘Employment Standards Administration—Salaries and Expenses’’, ‘‘Occupational Safety and Health Administration—Salaries and Expenses’’ and ‘‘Departmental Management—Salaries and Expenses’’ for expenses HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

necessary to administer and coordinate funds made

3

available to the De partment of Labor in this title; oversee

4

and evaluate the use of such funds; and enforce applicable

5

laws and regulations governing worker rights and 6 7 8

protections associated with the funds made available in this Act.

9

(b) Not later than 10 days prior to obligating any

10

funds proposed to be transferred under subsection (a), the

11

Secretary shall provide to the Committees on Appropria-

12 13 14 15

tions of the House of Representatives and the Senate an operating plan describing the planned uses of each amount proposed to be transferred. (c) Funds transferred under this section may be available for obligation through September 30, 2010. S EC . 804. E

LIGIBLE

E MPLOYEES IN THE R ECREATIONAL

M ARINE 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;’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

TITLE IX—LEGISLATIVE BRANCH GOVERNMENT

3

ACCOUNTABILITY OFFICE S ALARIES AND E XPENSES For

4

an additional amount for ‘‘Salaries and Expenses’’ of the

5

Government Accountability Office, $20,000,000, to remain 6

available until September 30, 2010.

7

GENERAL PROVISIONS—THIS TITLE

8 9 10

S EC . 901. G OVERNMENT A CCOUNTABILITY O FFICE R E VIEWS AND

11

R EPORTS . (a) R EVIEWS AND R EPORTS .— (1) I N G ENERAL.—The Comptroller General shall

12

conduct bimonthly reviews and prepare reports on 13 14 15

such reviews on the use by selected State and localities of funds made available in this Act. Such reports, along with any audits conducted by the Comptroller General of such funds, shall be posted on the Internet and linked to the website established under this Act by the Recovery Accountability and Transparency Board.

(2) R

EDACTIONS .—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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

(b) E

XAMINATION OF R ECORDS .—The

Comptroller

General may examine any records related to obligations of funds made available in this Act.

5

S EC . 902. A

CCESS OF G OVERNMENT

A CCOUNTABILITY

6 7

O FFICE. Each contract awarded using funds made available

8

in this Act shall provide that the Comptroller General and

9

his representatives are authorized—

10 11

(1) to examine any records of the contractor or any of its subcontractors, or any State or local agency

12 13 14 15

administering such contract, that directly pertain to, and involve transactions relating to, the contract or subcontract; and (2) to interview any current employee regarding such transactions. TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED AGENCIES DEPARTMENT OF DEFENSE M ILITARY C ONSTRUCTION , A RMY For an additional amount for ‘‘Military Construction, Army’’, $637,875,000, to remain available until September 30, 2013, of which $84,100,000 shall be for child development centers; $481,000,000 shall be for warrior transition complexes; and $42,400,000 shall be for health and dental clinics (including acquisition, construction, installation, HR 1 PP

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2

1 2

and equipment): Provided, That notwithstanding any other

3

provision of law, such funds may be obligated and

4

expended to carry out planning and design and military

5

construction projects in the United States not otherwise 6 7

authorized by law: Provided further, That of the funds

8

provided under this heading, not to exceed $30,375,000

9

shall be available for study, planning, design, and

10 11

architect and engineer services: Provided further, That within 30 days of enactment of this Act the Secretary of the

12 13 14 15

Army shall submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this heading prior to obligation. M ILITARY C ONSTRUCTION , N AVY AND M ARINE C ORPS For an additional amount for ‘‘Military Construction, Navy and Marine Corps’’, $990,092,000, to remain available until September 30, 2013, of which $172,820,000 shall be for child development centers; $174,304,000 shall be for barracks; $125,000,000 shall be for health clinic replacement, and $494,362,000 shall be for energy conservation and alternative energy projects (including acquisition, construction, installation, and equipment): Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out HR 1 PP

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2

1 2

planning and design and military construction projects in

3

the United States not otherwise authorized by law:

4

Provided further, That of the funds provided under this

5

heading, not to exceed $23,606,000 shall be available for 6 7

study, planning, design, and architect and engineer

8

services: Provided further, That within 30 days of

9

enactment of this Act the Secretary of the Navy shall

10

submit to the Committees on Appropriations of both

11

Houses of Congress an expenditure plan for funds

12 13

provided under this heading prior to obligation. M ILITARY C ONSTRUCTION , A IR FORCE

14 15

For an additional amount for ‘‘Military Construction, Air Force’’, $871,332,000, to remain available until September 30, 2013, of which $80,100,000 shall be for child development centers; $612,246,000 shall be for dormitories; and $138,100,000 shall be for health clinics (including acquisition, construction, installation, and equipment): Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That of the funds provided under this heading, not to exceed $40,886,000 HR 1 PP

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2

1 2

shall be available for study, planning, design, and

3

architect and engineer services: Provided further, That

4

within 30 days of enactment of this Act the Secretary of the

5

Air Force shall submit to the Committees on 6 7

Appropriations of both Houses of Congress an expenditure

8

plan for funds provided under this heading prior to obliga-

9

tion.

10

M ILITARY C ONSTRUCTION , D EFENSE -W IDE

11 12

For an additional amount for ‘‘Military Construction,

13

Defense-Wide’’, $118,560,000 for the Energy Conservation

14

Investment Program, to remain available until September

15

30, 2010: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That within 30 days of enactment of this Act the Secretary of Defense shall submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this heading prior to obligation. M ILITARY C ONSTRUCTION , A RMY N ATIONAL G UARD For an additional amount for ‘‘Military Construction, Army

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2

1 2

National Guard’’, $150,000,000 for readiness centers

3

(including construction, acquisition, expansion, rehabilita-

4

tion, and conversion), to remain available until September

5

30, 2013: Provided, That notwithstanding any other provi6 7

sion of law, such funds may be obligated and expended to

8

carry out planning and design and military construction

9

projects in the United States not otherwise authorized by

10 11

law: Provided further, That within 30 days of enactment of this Act the Director of the Army National Guard shall

12 13 14 15

submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this heading prior to obligation. M ILITARY C ONSTRUCTION , A IR N ATIONAL G UARD For an additional amount for ‘‘Military Construction, Air National Guard’’, $110,000,000, to remain available until September 30, 2013: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That within 30 days of enactment of this Act the Director of the Air National Guard shall submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds HR 1 PP

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2

1 2

provided under this heading prior to obligation.

3

FAMILY H OUSING C ONSTRUCTION , A RMY

4

For an additional amount for ‘‘Family Housing Con-

5

struction, Army’’, $34,570,000, to remain available until

6 7

September 30, 2013: Provided, That notwithstanding any

8

other provision of law, such funds may be obligated and

9

expended to carry out planning and design and military

10 11

construction projects in the United States not otherwise authorized by law: Provided further, That within 30 days of

12

enactment of this Act the Secretary of the Army shall sub13 14 15

mit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this heading prior to obligation. FAMILY H OUSING O PERATION AND M AINTENANCE, A RMY For an additional amount for ‘‘Family Housing Operation and Maintenance, Army’’, $3,932,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended for operation and maintenance and minor construction projects in the United States not otherwise authorized by law. FAMILY H OUSING C ONSTRUCTION , A IR FORCE For an additional amount for ‘‘Family Housing Construction, Air Force’’, $80,100,000, to remain available until September HR 1 PP

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2

1 2

30, 2013: Provided, That notwithstanding any other

3

provision of law, such funds may be obligated and

4

expended to carry out planning and design and military

5

construction projects in the United States not otherwise 6 7

authorized by law: Provided further, That within 30 days

8

of enactment of this Act the Secretary of the Air Force

9

shall submit to the Committees on Appropriations of both

10 11

Houses of Congress an expenditure plan for funds provided under this heading prior to obligation.

12 13 14 15

FAMILY H OUSING O PERATION AND M AINTENANCE, A IR FORCE For an additional amount for ‘‘Family Housing Operation and Maintenance, Air Force’’, $16,461,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended for operation and maintenance and minor construction projects in the United States not otherwise authorized by law. H OMEOWNERS A SSISTANCE FUND For an additional amount for ‘‘Homeowners Assistance Fund’’, established by section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended (42 U.S.C. 3374), $410,973,000, to remain available until expended. A DMINISTRATIVE PROVISION HR 1 PP

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2

1

S EC . 1001. (a) T

2 3 4

EMPORARY E XPANSION OF H OMEOWNERS

A SSISTANCE PLAN T O R ESPOND TO M ORTGAGE FORECLOSURE AND

C REDIT C RISIS . Section 1013 of the Demonstration

5

Cities and Metropolitan Development Act of 1966 (42 6 7

U.S.C. 3374) is amended— (1) in subsection (a)—

8

(A) by redesignating paragraphs (1), (2),

9 10

and (3) as clauses (i), (ii), and (iii), respectively,

11

and indenting such subparagraphs, as so

12

redesignated, 6 ems from the left margin; 13

(B) by striking ‘‘Notwithstanding any other

14

provision of law’’ and inserting the following:

15

‘‘(1) A

CQUISITION 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 in-

serting ‘‘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—

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2

1

‘‘(i) that the conditions in clauses (i)

2 3

and (ii) of subparagraph (A) have been met;

4

‘‘(ii) that the closing or realignment of

5

the base or installation resulted from a re6

alignment or closure carried out under the

7 8

2005 round of defense base closure and re-

9

alignment under the Defense Base Closure

10

and Realignment Act of 1990 (part XXIX of

11

Public Law 101–510; 10 U.S.C. 2687 note);

12

‘‘(iii) that the property was purchased

13

by the owner before July 1, 2006;

14

‘‘(iv) that the property was sold by the

15

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) H

OMEOWNER ASSISTANCE FOR WOUNDED

MEMBERS OF THE ARMED FORCES , DEPARTMENT OF DEFENSE AND UNITED STATES COAST GUARD CIVILIAN

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1 2

EMPLOYEES , AND THEIR SPOUSES .—Notwithstanding

3

other provision of law, the Secretary of Defense is

4

any

authorized to acquire title to, hold, manage, and

5

dispose of, or, in lieu thereof, to reimburse for certain 6 7

losses upon private sale of, or foreclosure against, any

8

property improved with a one- or two-family dwelling

9

which was at the time of the relevant wound, injury,

10

or illness, the primary residence of—

11

‘‘(A) any member of the Armed Forces in

12

medical transition who—

13

‘‘(i) incurred a wound, injury, or illness

14

in the line of duty during a deployment in

15

support of the Armed Forces; ‘‘(ii) is disabled to a degree of 30 percent or more as a result of such wound, in jury, or illness, as determined by the Secretary of Defense or the Secretary of Veterans Affairs; and ‘‘(iii) is reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability; ‘‘(B) any civilian employee of the DepartHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ment of Defense or the United States Coast

3

Guard who—

4

‘‘(i) was wounded, injured, or became

5

ill in the line of duty during a forward de6

ployment in support of the Armed Forces;

7

and

8 9

‘‘(ii) is reassigned in furtherance of medical

10

treatment, rehabilitation, or due to medical

11

retirement resulting from the sustained disability;

12

or ‘‘(C) the spouse of a member of the Armed

13

Forces or a civilian employee of the Department

14

of Defense or the United States Coast Guard if—

15

‘‘(i) the member or employee was killed in the line of duty during a deployment in support of the Armed Forces or died from a wound, injury, or illness incurred in the line of duty during such a deployment; and ‘‘(ii) the spouse relocates from such residence within 2 years after the death of such member or employee. ‘‘(3) T

EMPORARY HOMEOWNER ASSISTANCE FOR

MEMBERS OF THE ARMED FORCES PERMANENTLY RE ASSIGNED DURING SPECIFIED MORTGAGE CRISIS .—

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2

1 2

Notwithstanding any other provision of law, the Sec-

3

retary of Defense is authorized to acquire title to,

4

hold, manage, and dispose of, or, in lieu thereof, to

5

reimburse for certain losses upon private sale of, or 6 7

foreclosure against, any property improved with a

8

one- or two-family dwelling situated at or near a

9

military base or installation, if the Secretary deter-

10

mines—

11

‘‘(A) that the owner is a member of the

12

Armed Forces serving on permanent assignment;

13

‘‘(B) that the owner is permanently reas-

14

signed by order of the United States Government

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

Secretary;

2 3

‘‘(F) that the property is the primary resi-

4

dence of the owner; and

5

‘‘(G) that the owner has not previously re6

ceived benefit payments authorized under this

7 8

subsection.’’;

9

(2) in subsection (b), by striking ‘‘this section’’

10 11

each place it appears and inserting ‘‘subsection (a)(1)’’;

12

(3) in subsection (c)—

13

(A) by striking ‘‘Such persons’’ and insert-

14

ing the following:

15

‘‘(1) H

OMEOWNER 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— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(I) 95 per centum of the fair

3

market value of their property (as such

4

value is determined by the Secretary of

5

Defense) prior to public announcement 6

of intention to close all or part of the

7 8

military base or installation; and

9

‘‘(II) the fair market value’’;

10

(D) by striking ‘‘time of the sale, or (2) to

11

receive’’ and inserting the following: ‘‘time of the

12

sale; or 13

‘‘(ii) to receive’’;

14

(E) by striking ‘‘outstanding mortgages.

15

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) R EIMBURSEMENT 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) H HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

OMEOWNER ASSISTANCE FOR WOUNDED INDIVIDUALS AND

3

THEIR SPOUSES .—

4

‘‘(A) I N GENERAL.—Persons eligible under

5

the criteria set forth in subsection (a)(2) may

6

elect either—

7

‘‘(i) to receive a cash payment as com-

8

pensation for losses which may be or have

9 10

been sustained in a private sale, in an

11

amount not to exceed the difference be-

12

tween—

13

‘‘(I) 95 per centum of prior fair 14

market value of their property (as such

15

value is determined by the Secretary of Defense); and ‘‘(II) the fair market value of such property (as such value is so determined) at the time of the wound, injury, or illness qualifying the individual for benefits under subsection (a)(2); or ‘‘(ii) to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

mortgages.

2 3

‘‘(B) D

4

ETERMINATION OF BENEFITS .—The

Secretary may also pay a person who elects to

5

receive a cash payment under subparagraph (A) 6

an amount that the Secretary determines appro-

7 8

priate to reimburse the person for the costs in-

9

curred by the person in the sale of the property if

10

the Secretary determines that such payment will

11

benefit the person and is in the best interest of

12

the United States.

13

‘‘(3) H

14 15

OMEOWNER ASSISTANCE FOR PERMANENTLY

REASSIGNED INDIVIDUALS .—

‘‘(A) I N 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

Defense); and

2 3

‘‘(II) the fair market value of such

4

property (as such value is so determined) at

5

the time the person received change of 6

permanent station orders; or ‘‘(ii) to

7 8

receive, as purchase price for their

9

property an amount not to exceed 90 per

10

centum of prior fair market value as such

11

value is determined by the Secretary of

12

Defense, or the amount of the outstanding

13

mortgages.

14

‘‘(B) D

15

ETERMINATION 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) C

OMPENSATION AND LIMITATIONS RELATED TO

FORECLOSURES AND ENCUMBRANCES .—Cash

(4) by striking subsection (g); HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

payment’’;

2

1

(5) in subsection (l), by striking ‘‘(a)(2)’’ and in-

2 3

serting ‘‘(a)(1)(A)(ii)’’;

4

(6) in subsection (m), by striking ‘‘this section’’

5

and inserting ‘‘subsection (a)(1)’’; 6

(7) in subsection (n)—

7

(A) in paragraph (1), by striking ‘‘this sec-

8

tion’’ and inserting ‘‘subsection (a)(1)’’; and

9 10

(B) in paragraph (2), by striking ‘‘this sec-

11

tion’’ and inserting ‘‘subsection (a)(1)’’;

12

(8) in subsection (o)— 13

(A) in paragraph (1), by striking ‘‘this sec-

14

tion’’ and inserting ‘‘subsection (a)(1)’’;

15

(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) D EFINITIONS .—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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

title 5, United States Code;

3 4

‘‘(3) the term ‘medical transition’, in the case of a member of the Armed Forces, means a member

5

who— 6

‘‘(A) is in Medical Holdover status;

7

‘‘(B) is in Active Duty Medical Extension

8

status;

9 10

‘‘(C) is in Medical Hold status;

11

‘‘(D) is in a status pending an evaluation by

12

a medical evaluation board;

13

‘‘(E) has a complex medical need requiring

14

six or more months of medical treatment; or

15

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the jurisdiction of the Armed Forces which is

3

conducted for the comfort,

4

pleasure, contentment, or physical or mental im-

5

provement of members of the Armed Forces.’’. 6 7

(b) C

LERICAL

A MENDMENT .—Such section is further

8

amended in the section heading by inserting ‘‘and certain

9

property owned by members of the armed forces,

10 11

department of defense and united states coast guard civilian employees, and surviving spouses’’ after ‘‘ordered

12 13 14 15

to be closed’’. (c) A UTHORITY TO U SE A PPROPRIATED 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 H EALTH A DMINISTRATION MEDICAL SUPPORT AND COMPLIANCE

For an additional amount for ‘‘Medical Support and Compliance’’, $5,000,000, to remain available until September 30, 2010, to support contract administration and energy initiative execution at the Veterans Health AdminisHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tration.

3 4 5

MEDICAL FACILITIES

For an additional amount for ‘‘Medical Facilities’’, $1,370,459,000, to remain available until September 30,

6 7

2010, of which $1,047,313,000 shall be for facility

8

condition assessment deficiencies and non-recurring

9

maintenance at existing medical facilities; and

10

$323,146,000 shall be for energy efficiency initiatives.

11 12

NATIONAL CEMETERY ADMINISTRATION

For an additional amount for ‘‘National Cemetery Ad-

13 14 15

ministration’’, $64,961,000, to remain available until September 30, 2010, of which $59,476,000 shall be for capital infrastructure and memorial and monument repairs; and $5,485,000 shall be for energy efficiency initiatives. D EPARTMENTAL A DMINISTRATION GENERAL OPERATING EXPENSES

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

For an additional amount for ‘‘Information TechHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

nology Systems’’, $195,000,000, to remain available until

3

September 30, 2010, of which $145,000,000 shall be for the

4

Veterans Benefits Administration’s development of

5

paperless claims processing; and $50,000,000 shall be for 6 7 8

the development of systems required to implement chapter 33 of title 38, United States Code.

9 OFFICE OF INSPECTOR GENERAL

10 11 12

For an additional amount for ‘‘Office of Inspector General’’, $4,400,000, to remain available until September

13

30, 2011, for oversight and audit of programs, grants and

14

projects funded under this title.

15

CONSTRUCTION , MAJOR PROJECTS

For an additional amount for ‘‘Construction, Major Projects’’, $1,105,333,000, to remain available until September 30, 2013, which shall be for acceleration and construction of ongoing and planned construction, including physical security construction, of major medical facilities and National Cemeteries consistent with the Department of Veterans Affairs’ Five Year Capital Plan: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and major medical facility construction not otherwise authorized by law: Provided further, That within 30 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

days of enactment of this Act the Secretary of Veterans Af-

3

fairs shall submit to the Committees on Appropriations of

4

both Houses of Congress an expenditure plan for funds

5

provided under this heading prior to obligation. 6 CONSTRUCTION , MINOR PROJECTS

7 8

For an additional amount for ‘‘Construction, Minor

9

Projects’’, $939,836,000, to remain available until Sep-

10

tember 30, 2010, of which $860,742,000 shall be for Vet

11

erans Health Administration minor construction;

12

$20,300,000 shall be for Veterans Benefits Administration 13 14 15

minor construction, including $300,000 for energy efficiency initiatives; and $29,012,000 shall be for National Cemetery Administration minor construction. GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

For an additional amount for ‘‘Grants for Construction of State Extended Care Facilities’’, $257,986,000, to remain available until September 30, 2010, for grants to assist States to acquire or construct State nursing home and domiciliary facilities and to remodel, modify, or alter existing hospital, nursing home, and domiciliary facilities in State homes, for furnishing care to veterans as authorized by sections 8131 through 8137 of title 38, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

United States Code.

3 4 5

A DMINISTRATIVE PROVISION S EC . 1002. P AYMENTS TO E LIGIBLE PERSONS W HO S ERVED IN THE U NITED

S TATES A RMED FORCES IN THE FAR E AST D URING

6 7 8

W ORLD W AR II. (a) F INDINGS .—Congress makes the following findings:

9

(1) The Philippine islands became a United

10

States possession in 1898 when they were ceded from

11

Spain following the Spanish-American War.

12

(2) During World War II, Filipinos served in a 13 14 15

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 HR 1 PP

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2

1 2

prior to the enactment of the so-called Rescissions

3

Acts of 1946 (Public Laws 79–301 and 79–391) cur-

4

rently receive full benefits under laws administered by

5

the Secretary of Veterans Affairs, but under section 6 7

107 of title 38, United States Code, the service of cer-

8

tain other Filipino veterans is deemed not to be active

9

service for purposes of such laws.

10 11

(6) These other Filipino veterans only receive certain benefits under title 38, United States Code,

12 13 14

and, depending on where they legally reside, are paid such benefit amounts at reduced rates. (7) The benefits such veterans receive include

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of $0.50 per dollar authorized, regardless of the vet-

3

erans’ residency.

4

(b) C OMPENSATION FUND .—

5

(1) I N G ENERAL.—There is in the general fund of

6 7

the Treasury a fund to be known as the ‘‘Filipino

8

Veterans Equity Compensation Fund’’ (in this section

9

referred to as the ‘‘compensation fund’’).

10 11

(2) A

VAILABILITY OF FUNDS .—Subject

to the

availability of appropriations for such purpose,

12

amounts in the fund shall be available to the Secretary 13 14 15

of Veterans Affairs without fiscal year limitation to make payments to eligible persons in accordance with this section. (c) PAYMENTS .— (1) I N G ENERAL.—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 S URVIVING S POUSE .—If an eligible person who has filed a claim for benefits under this HR 1 PP

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1

2

2

section dies before payment is made under this

3

section, the payment under this section shall be made

4

instead to the surviving spouse, if any, of the eligible

5

person. 6 7 8

(d) E

LIGIBLE

PERSONS .—An eligible person is any

person who—

9

(1) served—

10

(A) before July 1, 1946, in the organized

11

military forces of the Government of the Com-

12

monwealth of the Philippines, while such forces 13

were in the service of the Armed Forces of the

14

United States pursuant to the military order of

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

dishonorable.

3

(e) P AYMENT A MOUNTS .—Each payment under this

4

section shall be—

5

(1) in the case of an eligible person who is 6 7 8

not a citizen of the United States, in the amount of $9,000; and

9 10 11

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

IMITATION .—The

Secretary may not make more

12 13 14 15

than one payment under this section for each eligible person described in subsection (d). (g) C

LARIFICATION OF T REATMENT OF PAYMENTS

U NDER

C ERTAIN L AWS .—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; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(B) eligibility of an individual to receive

3

benefits under title VIII of the Social Security Act,

4

or the amount of such benefits; or

5

(C) eligibility of an individual for, or the 6

amount of benefits under, any other Federal or

7

federally assisted program.

8 9

(h) R ELEASE .—

10 11

(1) I N G ENERAL.—Except as provided in paragraph (2), the acceptance by an eligible person or sur-

12

viving spouse, as applicable, of a payment under this 13 14 15

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 E LIGIBILITY S TATUS .— 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) R ECOGNITION OF S ERVICE.—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. HR 1 PP

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2

1 2

(j) A DMINISTRATION .—

3 4 5

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

6 7

tion. (2) The Secretary shall administer the provisions

8 9

of this section in a manner consistent with applicable

10

provisions of title 38, United States Code, and other

11

provisions of law, and shall apply the definitions in

12

section 101 of such title in the administration of such 13 14 15

provisions, except to the extent otherwise provided in this section. (k) R

EPORTS .—The

Secretary shall include, in docu-

ments 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 compensa tion fund, and the administration of the compensation fund for the most recent fiscal year for which such data is available. (l) A UTHORIZATION OF A PPROPRIATION .—There is authorized to be appropriated to the compensation fund HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

$198,000,000, to remain available until expended, to make

3

payments under this section.

4

RELATED AGENCY DEPARTMENT

5

OF DEFENSE—CIVIL C EMETERIAL 6

E XPENSES , A RMY

7

SALARY AND EXPENSES

8 9

For an additional amount for ‘‘Cemeterial Expenses,

10

Army’’, $60,300,000, to remain available until September

11

30, 2010, for land development, columbarium construction,

12

and relocation of utilities at Arlington National Cemetery. 13 14 15

TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS DEPARTMENT OF STATE A DMINISTRATION OF FOREIGN A FFAIRS DIPLOMATIC AND CONSULAR PROGRAMS

For an additional amount for ‘‘Diplomatic and Consular Programs’’ for urgent domestic facilities requirements, $90,000,000, to remain available until September 30, 2010, of which up to $20,000,000 shall be available for passport facilities and systems, and up to $65,000,000 shall be available for a consolidated security training facility in the United States and should be obligated in accordance with United States General Services Administration site selection procedures: Provided, That the Secretary of State HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

shall submit to the Committees on Appropriations within

3

90 days of enactment of this Act a detailed spending plan

4

for funds appropriated under this heading: Provided fur-

5

ther, That with respect to the funds made available for 6 7

passport facilities and systems, such plan shall be

8

developed in consultation with the Department of

9

Homeland Security and the General Services

10 11

Administration and shall coordinate and co-locate, to the extent feasible, the construction of passport agencies with

12 13

other Federal facilities. CAPITAL INVESTMENT FUND

14 15

For an additional amount for ‘‘Capital Investment Fund’’, $228,000,000, to remain available until September 30, 2010, which shall be available for information technology security and upgrades to support mission-critical operations: Provided, That the Secretary of State and the Administrator of the United States Agency for International Development shall coordinate information technology systems, where appropriate, to increase efficiencies and eliminate redundancies, to include co-location of backup information management facilities: Provided further, That the Secretary of State shall submit to the Com mittees on Appropriations within 90 days of enactment of this Act a HR 1 PP

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1

2

2

detailed spending plan for funds appropriated under this

3

heading.

4 5

OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Office of Inspector

6 7 8

General’’ for oversight requirements, $1,500,000, to remain available until September 30, 2011.

9

INTERNATIONAL COMMISSIONS INTERNATIONAL

10

B OUNDARY AND W ATER C OMMISSION , U NITED S TATES AND

11

M EXICO

12 CONSTRUCTION

13 (INCLUDING TRANSFER OF FUNDS)

14 15

For an additional amount for ‘‘Construction’’ for the water quantity program to meet immediate repair and rehabilitation requirements, $224,000,000, to remain available until September 30, 2010: Provided, That up to $2,000,000 may be transferred to, and merged with, funds available under the heading ‘‘International Boundary and Water Commission, United States and Mexico—Salaries and Expenses’’: Provided, That the Secretary of State shall submit to the Committees on Appropriations within 90 days of enactment of this Act a detailed spending plan for funds appropriated under this heading. UNITED STATES AGENCY FOR INTERNATIONAL HR 1 PP

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2

1 2

DEVELOPMENT FUNDS A PPROPRIATED TO THE PRESIDENT

3 4 5

CAPITAL INVESTMENT FUND

For an additional amount for ‘‘Capital Investment Fund’’, $58,000,000, to remain available until September

6 7

30, 2010, which shall be available for information tech-

8

nology modernization programs and implementation of the

9

Global Acquisition System: Provided, That the Adminis-

10 11

trator of the United States Agency for International Development shall submit to the Committees on Appropriations

12

within 90 days of enactment of this Act a detailed spending 13 14 15

plan for funds appropriated under this heading. O PERATING E XPENSES OF THE U NITED S TATES A GENCY FOR INTERNATIONAL D EVELOPMENT O FFICE OF INSPECTOR G ENERAL For an additional amount for ‘‘Operating Expenses of the United States Agency for International Development Office of Inspector General’’ for oversight requirements, $500,000, to remain available until September 30, 2011.

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2

1 2

TITLE XII—TRANSPORTATION AND HOUSING AND

3

URBAN DEVELOPMENT, AND RELATED AGENCIES

4

DEPARTMENT OF TRANSPORTATION O FFICE OF THE

5

S ECRETARY 6 SUPPLEMENTAL DISCRETIONARY GRANTS FOR A NATIONAL

7 8

SURFACE TRANSPORTATION SYSTEM

9

For an additional amount for capital investments in

10

surface transportation infrastructure, $5,500,000,000, to

11

remain available until September 30, 2011: Provided, That

12

the Secretary of Transportation shall distribute funds pro-

13 14 15

vided under this heading as discretionary grants to be awarded to State and local governments on a competitive basis for projects that will have a significant impact on the Nation, a metropolitan area, or a region: Provided further, That projects eligible for funding provided under this heading shall include, but not be limited to, highway or bridge projects eligible under title 23, United States Code, including interstate rehabilitation, improvements to the rural collector road system, the reconstruction of overpasses and interchanges, bridge replacements, seismic retrofit projects for bridges, and road realignments; public transportation projects eligible under chapter 53 of title 49, United States Code, including HR 1 PP

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1

2

2

investments in projects participating in the New Starts or

3

Small Starts programs that will expedite the completion of

4

those projects and their entry into revenue service;

5

passenger and freight rail transportation projects; and port 6 7

infrastructure investments, including projects that connect

8

ports to other modes of transportation and improve the

9

efficiency of freight movement: Provided further, That of

10 11

the amount made available under this paragraph, the Secretary may use an amount not to exceed $200,000,000

12 13 14 15

for the purpose of paying the subsidy costs of projects eligible for federal credit assistance under chapter 6 of title 23, United States Code, if the Secretary finds that such use of the funds would advance the purposes of this paragraph: Provided further, That in distributing funds provided under this heading, the Secretary shall take such measures so as to ensure an equitable geographic distribution of funds and an appropriate balance in addressing the needs of urban and rural communities: Provided further, That a grant funded under this heading shall be not less than $20,000,000 and not greater than $500,000,000: Provided further, That the Federal share of the costs for which an expenditure is made under this heading may be up to 100 percent: Provided further, That the HR 1 PP

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2

1 2

Secretary shall give priority to projects that require an ad-

3

ditional share of Federal funds in order to complete an

4

overall financing package, and to projects that are

5

expected to be completed within 3 years of enactment of 6 7

this Act: Provided further, That the Secretary shall publish

8

criteria on which to base the competition for any grants

9

awarded under this heading not later than 75 days after

10 11

enactment of this Act: Provided further, That the Secretary shall require applications for funding provided under this

12 13 14 15

heading to be submitted not later than 180 days after enactment of this Act, and announce all projects selected to be funded from such funds not later than 1 year after enactment of this Act: Provided further, That the Secretary shall require all additional applications to be submitted not later than 1 year after enactment of this Act, and announce not later than 180 days following such 1-year period all additional projects selected to be funded with funds withdrawn from States and grantees and transferred from ‘‘Supplemental Grants for Highway Investments’’ and ‘‘Supplemental Grants for Public Transit Investment’’: Provided further, That projects conducted using funds provided under this heading must comply with the requirements of subchapter IV of chapter 31 of title 40, HR 1 PP

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1

2

2

United States Code: Provided further, That the Secretary

3

may retain up to $5,000,000 of the funds provided under

4

this heading, and may transfer portions of those funds to

5

the Administrators of the Federal Highway Administration, 6 7

the Federal Transit Administration, the Federal Railroad

8

Administration and the Maritime Administration, to fund

9

the award and oversight of grants made under this

10

heading.

11

FEDERAL A VIATION A DMINISTRATION

12 13 14 15

SUPPLEMENTAL FUNDING FOR FACILITIES AND EQUIPMENT

For

an additional amount for necessary investments in Federal Aviation Administration infrastructure, $200,000,000: Provided, That funding provided under this heading shall be used to make improvements to power systems, air route traffic control centers, air traffic control towers, terminal radar approach control facilities, and navigation and landing equipment: Provided further, That priority be given to such projects or activities that will be completed within 2 years of enactment of this Act: Provided further, That amounts made available under this heading may be provided through grants in addition to the other instruments authorized under section 106(l)(6) of title 49,

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1

2

2

United States Code: Provided further, That the Federal

3

share of the costs for which an expenditure is made under

4

this heading shall be 100 percent: Provided further, That

5

amounts provided under this heading may be used for ex6 7

penses the agency incurs in administering this program:

8

Provided further, That not more than 60 days after enact-

9

ment of this Act, the Administrator shall establish a process

10

for applying, reviewing and awarding grants and coopera-

11

tive and other transaction agreements, including the form

12 13 14 15

and content of an application, and requirements for the maintenance of records that are necessary to facilitate an effective audit of the use of the funding provided: Provided further, That section 50101 of title 49, United States Code, shall apply to funds provided under this heading. SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT INVESTMENT

For an additional amount for capital expenditures authorized under sections 47102(3) and 47504(c) of title 49, United States Code, and for the procurement, installation and commissioning of runway incursion prevention devices and systems at airports of such title, $1,100,000,000: Provided, That the Secretary of Transportation shall distribute funds provided under this heading as discretionary grants HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

to airports, with priority given to those projects that dem-

3

onstrate to his or her satisfaction their ability to be com-

4

pleted within 2 years of enactment of this Act, and serve to

5

supplement and not supplant planned expenditures from 6 7

airport-generated revenues or from other State and local

8

sources on such activities: Provided further, That the Fed-

9

eral share payable of the costs for which a grant is made

10 11

under this heading shall be 100 percent: Provided further, That the amount made available under this heading shall

12 13 14 15

not be subject to any limitation on obligations for the Grants-in-Aid for Airports program set forth in any Act: Provided further, That section 50101 of title 49, United States Code, shall apply to funds provided under this head ing: Provided further, That projects conducted using funds provided under this heading must comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code: Provided further, That the Administrator of the Federal Aviation Administration may retain and transfer to ‘‘Federal Aviation Administration, Operations’’ up to one-quarter of 1 percent of the funds provided under this heading to fund the award and oversight by the Administrator of grants made under this heading. FEDERAL H IGHWAY A DMINISTRATION HR 1 PP

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2

1 2

SUPPLEMENTAL GRANTS FOR HIGHWAY INVESTMENT

3

For an additional amount for restoration, repair, con-

4 5

struction and other activities eligible under paragraph (b) of section 133 of title 23, United States Code,

6

$27,060,000,000: Provided, That funds provided under this 7 8 9

heading shall be apportioned to States using the formula set forth in section 104(b)(3) of such title: Provided further,

10

That 180 days following the date of such apportionment,

11

the Secretary of Transportation shall withdraw from each

12

State an amount equal to 50 percent of the funds awarded

13 14 15

to that grantee less the amount of funding obligated, and the Secretary shall redistribute such amounts to other States that have had no funds withdrawn under this proviso in the manner described in section 120(c) of division K of Public Law 110–161: Provided further, That 1 year following the date of such apportionment, the Secretary shall withdraw from each recipient of funds apportioned under this heading any unobligated funds and transfer such funds to ‘‘Supplemental Discretionary Grants for a National Surface Transportation System’’: Provided further, That at the request of a State, the Secretary of Transportation may provide an extension of such 1-year period only to the extent that he or she feels HR 1 PP

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2

1 2

satisfied that the State has encountered extreme conditions

3

that create an unworkable bidding environment or other

4

extenuating circumstances: Provided further, That before

5

granting a such an extension, the Secretary shall send a 6 7

letter to the House and Senate Committees on

8

Appropriations that provides a thorough justification for

9

the extension: Provided further, That the provisions of

10

subsections 133(d)(3) and 133(d)(4) of title 23, United

11

States Code, shall apply to funds apportioned under this

12 13 14 15

heading, except that the percentage of funds to be allocated to local jurisdictions shall be 40 percent and such allocation, notwithstanding any other provision of law, shall be conducted in all states within the United States: Provided further, That funds allocated to such urbanized areas and other areas shall not be subject to the redistribution of amounts required 180 days following the date of apportionment of funds provided under this heading: Provided further, That funds apportioned under this heading may be used for, but not be limited to, projects that address stormwater runoff, investments in passenger and freight rail transportation, and investments in port infrastructure: Provided further, that each State shall use not less than 5 percent of funds apportioned to it for activities eligible HR 1 PP

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1

2

2

under subsections 149(b) and (c) of title 23, United States

3

Code: Provided further, That of the funds provided under

4

this heading, $60,000,000 shall be for capital expenditures

5

eligible under section 147 of title 23, United States Code: 6 7

Provided further, That the Secretary of Transportation

8

shall distribute such $60,000,000 as competitive discre-

9

tionary grants to States, with priority given to those

10 11

projects that demonstrate to his or her satisfaction their ability to be completed within 2 years of enactment of this

12 13 14 15

Act: Provided further, That of the funds provided under this heading, $500,000,000 shall be for investments in transportation at Indian reservations and Federal lands, and administered in accordance with chapter 2 of title 23, United States Code: Provided further, That of the funds identified in the preceding proviso, $320,000,000 shall be for the Indian Reservation Roads program, $100,000,000 shall be for the Park Roads and Parkways program, $70,000,000 shall be for the Forest Highway Program, and $10,000,000 shall be for the Refuge Roads program: Provided further, That for investments at Indian reservations and Federal lands, priority shall be given to capital investments, and to projects and activities that can be completed within 2 years of enactment of this Act: HR 1 PP

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1

2

2

Provided further, That 1 year following the enactment of

3

this Act, to ensure the prompt use of the $500,000,000

4

provided for investments at Indian reservations and

5

Federal lands, the Secretary shall have the authority to 6 7

redistribute unobligated funds within the respective

8

program for which the funds were appropriated: Provided

9

further, That up to 4 percent of the funding provided for

10 11

Indian Reservation Roads may be used by the Secretary of the Interior for program management and oversight and

12 13 14 15

project-related administrative expenses: Provided further, That section 134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply to funds provided under this heading: Provided further, That the Federal share payable on account of any project or activity carried out with funds made available under this heading shall be at the option of the recipient, and may be up to 100 percent of the total cost thereof: Provided further, That funding provided under this heading shall be in addition to any and all funds provided for fiscal years 2008 and 2009 in any other Act for ‘‘Federal-aid Highways’’ and shall not affect the distribution of funds provided for ‘‘Federal-aid Highways’’ in any other Act: Provided further, That the amount made available under this heading shall not be subject to any lim HR 1 PP

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2

1 2

itation on obligations for Federal-aid highways or highway

3

safety construction programs set forth in any Act: Provided

4

further, That projects conducted using funds provided

5

under this heading must comply with the requirements of 6 7

subchapter IV of chapter 31 of title 40, United States Code:

8

Provided further, That section 313 of title 23, United States

9

Code, shall apply to funds provided under this heading:

10 11

Provided further, That section 1101(b) of Public Law 109– 59 shall apply to funds apportioned under this heading:

12 13 14 15

Provided further, That for the purposes of the definition of States for this paragraph, sections 101(a)(32) of title 23, United States Code, shall apply: Provided further, That the Administrator of the Federal Highway Administration may retain up to $12,000,000 of the funds provided under this heading to carry out the function of the ‘‘Federal Highway Administration, Limitation on Administrative Expenses’’ and to fund the oversight by the Administrator of projects and activities carried out with funds made available to the Federal Highway Administration in this Act. FEDERAL R AILROAD A DMINISTRATION SUPPLEMENTAL GRANTS TO STATES FOR INTERCITY PASSENGER RAIL SERVICE

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2

1 2

States to pay for the cost of projects described in

3

paragraphs (2)(A) and (2)(B) of section 24401 of title 49,

4

United States Code, and subsection (b) of section 24105 of

5

such title, $250,000,000: Provided, That to be eligible for 6 7

assistance under this paragraph, the specific project must

8

be on a Statewide Transportation Improvement Plan at the

9

time of the application to qualify: Provided further, That

10 11

the Secretary of Transportation shall give priority to projects that demonstrate an ability to be completed within

12 13 14 15

2 years of enactment of this Act, and to projects that improve the safety and reliability of intercity passenger trains: Provided further, That the Federal share payable of the costs for which a grant is made under this heading shall be 100 percent: Provided further, That projects conducted using funds provided under this heading must comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code: Provided further, That section 24405(a) of title 49, United States Code, shall apply to funds provided under this heading: Provided further, That the Administrator of the Federal Railroad Administration may retain and transfer to ‘‘Federal Railroad Administration, Safety and Operations’’ up to one-quarter of 1 percent of the funds provided under this HR 1 PP

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2

1 2

heading to fund the award and oversight by the

3

Administrator of grants made under this heading.

4 SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL

5 6

RAILROAD PASSENGER CORPORATION

7

For an additional amount for the immediate invest-

8 9

ment in capital projects necessary to maintain and improve national intercity passenger rail service, including the re-

10

habilitation of rolling stock, $850,000,000: Provided, That 11 12

funds made available under this heading shall be allocated

13

directly to the National Railroad Passenger Corporation:

14

Provided further, That the Board of Directors of the cor-

15

poration shall take measures to ensure that priority is given to capital projects that expand passenger rail capacity: Provided further, That the Board of Directors shall take measures to ensure that projects funded under this heading shall be completed within 2 years of enactment of this Act, and shall serve to supplement and not supplant planned expenditures for such activities from other Federal, State, local and corporate sources: Provided further, That said Board of Directors shall certify to the House and Senate Committees on Appropriations in writing their compliance with the preceding proviso: Provided further, That section 24305(f) HR 1 PP

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2

1 2

of title 49, United States Code, shall apply to funds

3

provided under this heading: Provided further, That not

4

more than 50 percent of the funds provided under this

5

heading may be used for capital projects along the North6 7

east Corridor.

8 9

HIGH -SPEED RAIL CORRIDOR PROGRAM

To make grants for high-speed rail projects under the

10 11

provisions of section 26106 of title 49, United States Code,

12

$2,000,000,000, to remain available until September 30,

13

2011: Provided, That the Federal share payable of the

14

costs for which a grant is made under this heading shall

15

be 100 percent: Provided further, That the Administrator of the Federal Railroad Administration may retain and transfer to ‘‘Federal Railroad Administration, Safety and Operations’’ up to one-quarter of 1 percent of the funds provided under this heading to fund the award and oversight by the Administrator of grants made under this paragraph. FEDERAL T RANSIT A DMINISTRATION SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT INVESTMENT

For

an additional amount for capital expenditures authorized under section 5302(a)(1) of title 49, United States Code,

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

$8,400,000,000: Provided, That the Secretary of

3

Transportation shall apportion 71 percent of the funds ap-

4

portioned under this heading using the formula set forth in

5

subsections (a) through (c) of section 5336 of title 49, 6 7

United States Code, 19 percent of the funds apportioned

8

under this heading using the formula set forth in section

9

5340 of such title, and 10 percent of the funding appor-

10

tioned under this heading using the formula set forth in

11

subsection 5311(c) of such title: Provided further, That 180

12 13 14 15

days following the date of such apportionment, the Secretary shall withdraw from each grantee an amount equal to 50 percent of the funds awarded to that grantee less the amount of funding obligated, and the Secretary shall redistribute such amounts to other grantees that have had no funds withdrawn under this proviso utilizing whatever method he or she deems appropriate to ensure that all funds provided under this paragraph shall be utilized promptly: Provided further, That 1 year following the date of such apportionment, the Secretary shall withdraw from each grantee any unobligated funds and transfer such funds to ‘‘Supplemental Discretionary Grants for a National Surface Transportation System’’: Provided further, That at the request of a grantee, the Secretary of HR 1 PP

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1

2

2

Transportation may provide an extension of such 1-year

3

periods if he or she feels satisfied that the grantee has

4

encountered an unworkable bidding environment or other

5

extenuating circumstances: Provided further, That before 6 7

granting such an extension, the Secretary shall send a

8

letter to the House and Senate Committees on

9

Appropriations that provides a thorough justification for

10 11

the extension: Provided further, That of the funds apportioned using the formula set forth in subsection

12 13 14 15

5311(c) of title 49, United States Code, 2 percent shall be made available for section 5311(c)(1): Provided further, That of the funding provided under this heading, $200,000,000 shall be distributed as discretionary grants to public transit agencies for capital investments that will assist in reducing the energy consumption or greenhouse gas emissions of their public transportation systems: Provided further, That for such grants on energy-related investments, priority shall be given to projects based on the total energy savings that are projected to result from the investment, and projected energy savings as a percentage of the total energy usage of the public transit agency: Provided further, That the Federal share of the costs for which any grant is made under this heading shall HR 1 PP

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2

1 2

be at the option of the recipient, and may be up to 100

3

percent: Provided further, That the amount made available

4

under this heading shall not be subject to any limitation on

5

obligations for transit programs set forth in any Act: 6 7

Provided further, That section 1101(b) of Public Law

8

109–59 shall apply to funds apportioned under this

9

heading: Provided further, That the funds appropriated

10 11

under this heading shall be subject to subsection 5323(j) and section 5333 of title 49, United States Code as well as

12 13 14 15

sections 5304 and 5305 of said title, as appropriate, but shall not be comingled with funds available under the Formula and Bus Grants account: Provided further, That the Administrator of the Federal Transit Administration may retain up to $3,000,000 of the funds provided under this heading to carry out the function of ‘‘Federal Transit Administration, Administrative Expenses’’ and to fund the oversight of grants made under this heading by the Administrator. M ARITIME A DMINISTRATION SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL SHIPYARDS

To make grants to qualified shipyards as authorized under section 3506 of Public Law 109–163 or section HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

54101 of title 46, United States Code, $100,000,000:

3

Provided, That the Secretary of Transportation shall

4

institute measures to ensure that funds provided under this

5

heading shall be obligated within 180 days of the date of 6 7

their distribution: Provided further, That the Maritime

8

Administrator may retain and transfer to ‘‘Maritime

9

Administration, Operations and Training’’ up to 2 percent

10

of the funds provided under this heading to fund the award

11

and oversight by the Administrator of grants made under

12 13

this heading. O FFICE OF INSPECTOR G ENERAL

14

SALARIES AND EXPENSES

15

For an additional amount for necessary expenses of the Office of Inspector General to carry out the provisions of the Inspector General Act of 1978, as amended, $7,750,000, to remain available until September 30, 2011, and an additional $12,250,000 for such purposes, to remain available until September 30, 2012: Provided, That the funding made available under this heading shall be used for conducting audits and investigations of projects and activities carried out with funds made available in this Act to the Department of Transportation and to the National Railroad Passenger Corporation: Provided HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

further, That the Inspector General shall have all

3

necessary authority, in carrying out the duties specified in

4

the Inspector General Act, as amended (5 U.S.C. App. 3),

5

to investigate allegations of fraud, including false 6 7

statements to the Government (18 U.S.C. 1001), by any

8

person or entity that is subject to regulation by the

9

Department.

10 11

GENERAL PROVISION—DEPARTMENT OF TRANSPORTATION S EC . 1201. Section 5309(g)(4)(A) of

12 13 14 15

title 49, United States Code, is amended by striking ‘‘or an amount equivalent to the last 3 fiscal years of funding allocated under subsections (m)(1)(A) and (m)(2)(A)(ii)’’ and inserting ‘‘or the sum of the funds available for the next 3 fiscal years beyond the current fiscal year, assuming an annual growth of the program of 10 percent’’. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT N ATIVE A MERICAN H OUSING B LOCK G RANTS 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, HR 1 PP

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2

1 2

2011: Provided, That $255,000,000 of the amount provided

3

under this heading shall be distributed according to the

4

same funding formula used in fiscal year 2008: Provided

5

further, That in selecting projects to be funded, recipients 6 7

shall give priority to projects that can award contracts

8

based on bids within 180 days from the date that funds are

9

available to recipients: Provided further, That the Sec-

10

retary shall obligate $255,000,000 of the amount provided

11

under this heading for competitive grants to eligible

12 13 14 15

entities that apply for funds authorized under NAHASDA: Provided further, That in awarding competitive funds, the Secretary shall give priority to projects that will spur construction and rehabilitation and will create employment opportunities for low-income and unemployed persons: Provided further, That recipients of funds under this heading shall obligate 100 percent of such funds within 1 year of the date of enactment of this Act, expend at least 50 percent of such funds within 2 years of the date on which funds become available to such jurisdictions for obligation, and expend 100 percent of such funds within 3 years of such date: Provided further, That if a recipient fails to comply with either the 1-year obligation requirement or the 2-year expenditure requirement, the HR 1 PP

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2

1 2

Secretary shall recapture all remaining funds awarded to

3

the recipient and reallocate such funds to recipients that

4

are in compliance with those requirements: Provided

5

further, That if a recipient fails to comply with the 3-year 6 7

expenditure requirement, the Secretary shall recapture the

8

balance of the funds awarded to the recipient: Provided

9

further, That, notwithstanding any other provision of this

10

paragraph, the Secretary may institute measures to ensure

11

participation in the formula and competitive allocation of

12 13 14 15

funds provided under this paragraph by any housing entity eligible to receive funding under title VIII of NAHASDA (25 U.S.C. 4221 et seq.): Provided further, That in administering funds provided in this heading, the Secretary may waive any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds except for requirements imposed by this heading and requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that such waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of the statute or regulation: Provided further, That, of the funds made available under this HR 1 PP

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2

1 2

heading, up to 1 percent shall be available for staffing,

3

training, technical assistance, technology, monitoring, re

4

search and evaluation activities: Provided further, That

5

any funds made available under this heading used by the 6 7

Secretary for personnel expenses shall be transferred to

8

and merged with funding provided to ‘‘Personnel

9

Compensation and Benefits, Office of Public and Indian

10 11

Housing’’: Provided further, That any funds made available under this heading used by the Secretary for

12 13 14 15

training or other administrative expenses shall be transferred to and merged with funding provided to ‘‘Administration, Operations, and Management’’, for non-personnel expenses of the Department of Housing and Urban Development: Provided further, That any funds made available under this heading used by the Secretary for technology shall be transferred to and merged with the funding provided to ‘‘Working Capital Fund’’. PUBLIC H OUSING C APITAL FUND For an additional amount for the ‘‘Public Housing Capital Fund’’ to carry out capital and management activities for public housing agencies, as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the ‘‘Act’’), $5,000,000,000, to remain HR 1 PP

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1

2

2

available until September 30, 2011: Provided, That the

3

Secretary of Housing and Urban Development shall

4

allocate $3,000,000,000 of this amount by the formula

5

authorized under section 9(d)(2) of the Act, except that the 6 7

Secretary may determine not to allocate funding to public

8

housing agencies currently designated as troubled or to

9

public housing agencies that elect not to accept such

10 11

funding: Provided further, That the Secretary shall make available $2,000,000,000 by competition for priority

12 13 14 15

investments, including investments that leverage private sector funding or financing for renovations and energy conservation retrofit investments: Provided further, That public housing agencies shall prioritize capital projects that are already underway or included in the 5-year capital fund plans required by the Act (42 U.S.C. 1437c–1(a)): Provided further, That in allocating competitive grants under this heading, the Secretary shall give priority consideration to the rehabilitation of vacant rental units: Provided further, That notwithstanding any other provision of law, (1) funding provided herein may not be used for operating or rental assistance activities, and (2) any restriction of funding to replacement housing uses shall be inapplicable: Provided further, That HR 1 PP

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1

2

2

notwithstanding any other provision of law, the Secretary

3

shall institute measures to ensure that funds provided

4

under this heading shall serve to supplement and not

5

supplant expenditures from other Federal, State, or local 6 7

sources or funds independently generated by the grantee:

8

Provided further, That notwithstanding section 9(j), public

9

housing agencies shall obligate 100 percent of the funds

10 11

within 1 year of the date of enactment of this Act, shall expend at least 60 percent of funds within 2 years of the

12 13 14 15

date on which funds become available to the agency for obligation, and shall expend 100 percent of the funds within 3 years of such date: Provided further, That if a public housing agency fails to comply with either the 1-year obligation requirement or the 2-year expenditure requirement, the Secretary shall recapture all remaining funds awarded to the public housing agency and reallocate such funds to agencies that are in compliance with those requirements: Provided further, That if a public housing agency fails to comply with the 3-year expenditure requirement, the Secretary shall recapture the balance of the funds awarded to the public housing agency: Provided further, That in administering funds provided in this heading, the Secretary may waive any provision of any HR 1 PP

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2

1 2

statute or regulation that the Secretary administers in con-

3

nection with the obligation by the Secretary or the use by

4

the recipient of these funds except for requirements

5

imposed by this heading and requirements related to 6 7

conditions on use of funds for development and

8

modernization, fair housing, non-discrimination, labor

9

standards, and the environment, upon a finding that such

10 11

waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of

12 13 14 15

the statute or regulation: Provided further, That of the funds made available under this heading, up to 1 percent shall be available for staffing, training, technical assistance, technology, monitoring, research and evaluation activities: Provided further, That any funds made available under this heading used by the Secretary for personnel expenses shall be transferred to and merged with funding provided to ‘‘Personnel Compensation and Benefits, Office of Public and Indian Housing’’: Provided further, That any funds made available under this heading used by the Secretary for training or other administrative expenses shall be transferred to and merged with funding provided to ‘‘Administration, Operations, and Management’’, for non-personnel expenses of the DepartHR 1 PP

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1

2

2

ment of Housing and Urban Development: Provided fur-

3

ther, That any funds made available under this heading

4

used by the Secretary for technology shall be transferred to

5

and merged with the funding provided to ‘‘Working Capital 6 7 8 9 10 11

Fund’’. H OME INVESTMENT PARTNERSHIPS PROGRAM For an additional amount for the ‘‘HOME Investment Partnerships Program’’ as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (the

12 13 14 15

‘‘Act’’), $250,000,000, to remain available until September 30, 2011: Provided, That except as specifically provided herein, funds provided under this heading shall be distributed pursuant to the formula authorized by section 217 of the Act: Provided further, That the Secretary may establish a minimum grant size: Provided further, That participating jurisdictions shall obligate 100 percent of the funds within 1 year of the date of enactment of this Act, shall expend at least 60 percent of funds within 2 years of the date on which funds become available to the participating jurisdiction for obligation and shall expend 100 percent of the funds within 3 years of such date: Provided further, That if a participating jurisdiction fails to comply with either the 1-year obligation requirement or the 2-year exHR 1 PP

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2

1 2

penditure requirement, the Secretary shall recapture all re-

3

maining funds awarded to the participating jurisdiction

4

and reallocate such funds to participating jurisdictions that

5

are in compliance with those requirements: Provided fur6 7

ther, That if a participating jurisdiction fails to comply

8

with the 3-year expenditure requirement, the Secretary

9

shall recapture the balance of the funds awarded to the

10 11

participating jurisdiction: Provided further, That in administering funds under this heading, the Secretary may waive

12 13 14 15

any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds except for requirements imposed by this heading and requirements related to fair housing, non-discrimination, labor standards and the environment, upon a finding that such waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of the statute or regulation: Provided further, That the Secretary may use funds provided under this heading to provide incentives to grantees to use funding for investments in energy efficiency and green building technology: Provided further, That such incentives may include allocation of up to 20 percent of funds made HR 1 PP

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1

2

2

available under this heading other than pursuant to the

3

formula authorized by section 217 of the Act: Provided

4

further, That, of the funds made available under this

5

heading, up to 1 percent shall be available for staffing, 6 7

training, technical assistance, technology, monitoring, re-

8

search and evaluation activities: Provided further, That

9

any funds made available under this heading used by the

10

Secretary for personnel expenses shall be transferred to

11

and merged with funding provided to ‘‘Personnel

12 13 14 15

Compensation and Benefits, Office of Community Planning and Development’’: Provided further, That any funds made available under this heading used by the Secretary for training or other administrative expenses shall be transferred to and merged with funding provided to ‘‘Administration, Operations, and Management’’, for non-personnel expenses of the Department of Housing and Urban Development: Provided further, That any funds made available under this heading used by the Secretary for technology shall be transferred to and merged with the funding provided to ‘‘Working Capital Fund’’. For an additional amount for capital investments in low-income housing tax credit projects, $2,000,000,000, to remain available until September 30, 2011: Provided, That HR 1 PP

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2

1 2

the funds shall be allocated to States under the HOME pro-

3

gram under this Heading shall be made available to State

4

housing finance agencies in an amount totaling

5

$2,000,000,000, subject to any changes made to a State 6 7

allocation for the benefit of a State by the Secretary of

8

Housing and Urban Development for areas that have

9

suffered from disproportionate job loss and foreclosure:

10

Provided further, That the Secretary, in consultation with

11

the States, shall determine the amount of funds each State

12 13 14 15

shall have available under HOME: Provided further, That the State housing finance agencies (including for purposes throughout this heading any entity that is responsible for distributing low- income housing tax credits) or as appropriate as an entity as a gap financer, shall distribute these funds competitively under this heading to housing developers for projects eligible for funding (such terms including those who may have received funding) under the low-income housing tax credit program as provided under section 42 of the I.R.C. of 1986, with a review of both the decisionmaking and process for the award by the Secretary of Housing and Urban Develop ment: Provided further, That funds under this heading must be awarded by State housing finance agencies within 120 days of HR 1 PP

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2

1 2

enactment of the Act and obligated by the developer of the

3

low-income housing tax credit project within one year of

4

the date of enactment of this Act, shall expend 75 percent

5

of the funds within two years of the date on which the funds 6 7

become available, and shall expend 100 percent of the

8

funds within 3 years of such date: Provided further, That

9

failure by a developer to expend funds within the

10 11

parameters required within the previous proviso shall result in a redistribution of these funds by a State housing

12 13 14 15

finance agency or by the Secretary if there is a more deserving project in another jurisdiction: Provided further, That projects awarded tax credits within 3 years prior to the date of enactment of this Act shall be eligible for funding under this heading: Provided further, That as part of the review, the Secretary shall ensure equitable distribution of funds and an appropriate balance in addressing the needs of urban and rural communities with a special priority on areas that have suffered from excessive job loss and foreclosures: Provided further, That State housing finance agencies shall give priority to projects that require an additional share of Federal funds in order to complete an overall funding package, and to projects that are expected to be completed within 3 years HR 1 PP

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1

2

2

of enactment: Provided further, That any assistance pro

3

vided to an eligible low-income housing tax credit project

4

under this heading shall be made in the same manner and

5

be subject to the same limitations (including rent, income, 6 7

and use restrictions) as an allocation of the housing credit

8

amount allocated by the State housing finance agency

9

under section 42 of the I.R.C. of 1986, except that such as-

10

sistance shall not be limited by, or otherwise affect (except

11

as provided in subsection (h)(3)(J) of such section), the

12 13 14 15

State housing finance agency applicable to such agency: Provided further, That the State housing finance agency shall perform asset management functions to ensure compliance with section 42 of the I.R.C. of 1986, and the long term viability of buildings funded by assistance under this heading: Provided further, That the term basis (as such term is defined in such section 42) of a qualified low-income housing tax credit building receiving assistance under this heading shall not be reduced by the amount of any grant described under this heading: Provided further, That the Secretary shall collect all information related to the award of Federal funds from state housing finance agencies and establish an internet site that shall identify all projects selected for an award, HR 1 PP

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1

2

2

including the amount of the award as well as the process

3

and all information that was used to make the award

4

decision.

5

H OMELESSNESS PREVENTION FUND 6 7

For homelessness prevention activities,

8

$1,500,000,000, to remain available until September 30,

9

2011: Provided, That funds provided under this heading

10 11

shall be used for the provision of short-term or medium-term rental assistance; housing relocation and

12

stabilization services including housing search, mediation 13 14 15

or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, and moving cost assistance; or other appropriate homelessness prevention activities: Provided further, That grantees receiving such assistance shall collect data on the use of the funds awarded and persons served with this assistance in the Homeless Management Information System (HMIS) or other comparable database: Provided further, That grantees may use up to 5 percent of any grant for administrative costs: Provided further, That funding made available under this heading shall be allocated to eligible grantees (as defined and designated in sections 411 and 412 of subtitle B HR 1 PP

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2

1 2

of title IV of the McKinney-Vento Homeless Assistance Act,

3

(the ‘‘Act’’)) pursuant to the formula authorized by section

4

413 of the Act: Provided further, That the Secretary may

5

establish a minimum grant size: Provided further, That 6 7

grantees shall expend at least 75 percent of funds within 2

8

years of the date that funds became available to them for

9

obligation, and 100 percent of funds within 3 years of such

10 11

date, and the Secretary may recapture unexpended funds in violation of the 2-year expenditure requirement and

12 13 14 15

reallocate such funds to grantees in compliance with that requirement: Provided further, That the Secretary may waive statutory or regulatory provisions (except provisions for fair housing, nondiscrimination, labor standards, and the environment) necessary to facilitate the timely expenditure of funds: Provided further, That the Secretary shall publish a notice to establish such requirements as may be necessary to carry out the provisions of this section within 30 days of enactment of the Act and that this notice shall take effect upon issuance: Provided further, That of the funds provided under this heading, up to 1.5 percent shall be available for staffing, training, technical assistance, technology, monitoring, research and evaluation activities: Provided further, That any funds made available under this HR 1 PP

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1 2

heading used by the Secretary for personnel expense shall

3

be transferred to and merged with funding provided to

4

‘‘Community Planning and Development Personnel Com-

5

pensation and Benefits’’: Provided further, That any funds 6 7

made available under this heading used by the Secretary

8

for training or other administrative expenses shall be

9

transferred to and merged with funding provided to

10 11

‘‘Administration, Operations, and Management’’ for non-personnel expenses of the Department of Housing and

12 13 14 15

Urban Development: Provided further, That any funding made available under this heading used by the Secretary for technology shall be transferred to and merged with the funding provided to ‘‘Working Capital Fund.’’ A SSISTED H OUSING S TABILITY AND E NERGY AND G REEN R ETROFIT INVESTMENTS For assistance to owners of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 17012), section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of 1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which $2,132,000,000 shall be for an additional amount for paragraph (1) under the heading ‘‘Project-Based Rental Assistance’’ in Public Law HR 1 PP

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1

2

2

110–161 for payments to owners for 12-month periods,

3

and of which $118,000,000 shall be for grants or loans for

4

energy retrofit and green investments in such assisted

5

housing: Provided, That projects funded with grants or 6 7

loans provided under this heading must comply with the

8

requirements of subchapter IV of chapter 31 of title 40,

9

United States Code: Provided further, That such grants or

10 11

loans shall be provided through the existing policies, procedures, contracts, and transactional infrastructure of

12 13 14 15

the authorized programs administered by the Office of Affordable Housing Preservation of the Department of Housing and Urban Development, on such terms and conditions as the Secretary of Housing and Urban Development deems appropriate to ensure the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds: Provided further, That the Secretary may provide incentives to owners to undertake energy or green retrofits as a part of such grant or loan terms, including, but not limited to, investment fees to cover oversight and implementation costs incurred by said owner, or to encourage job creation for low-income or very low-income individuals: Provided HR 1 PP

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2

1 2

further, That the grants or loans shall include a financial

3

assessment and physical inspection of such property:

4

Provided further, That eligible owners must have at least a

5

satisfactory management review rating, be in substantial 6 7

compliance with applicable performance standards and

8

legal requirements, and commit to an additional period of

9

affordability determined by the Secretary, but of not fewer

10

than 15 years: Provided further, That the Secretary shall

11

undertake appropriate underwriting and oversight with

12 13 14 15

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 nec essary to ensure that owners receiving funding for energy and green retrofit investments under this heading shall expend such funding within 2 years of the date they received the funding: Provided further, That the Secretary may waive or modify statutory or regulatory requirements with respect to any existing grant, loan, or insurance mechanism authorized to be used by the Secretary to enable or facilitate the accomplishment of investments supported with funds made available under this heading for grants or loans: Provided further, That of the funds HR 1 PP

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2

1 2

provided under this heading, up to 1.5 percent shall be

3

available for staffing, training, technical assistance,

4

technology, monitoring, research and evaluation

5

activities: Provided further, That funding made available 6 7

under this heading and used by the Secretary for personnel

8

expenses shall be transferred to and merged with funding

9

provided to ‘‘Housing Compensation and Benefits’’:

10 11

Provided further, That any funding made available under this heading used by the Secretary for training and other

12 13 14 15

administrative expenses shall be transferred to and merged with funding provided to ‘‘Administration, Operations and Management’’ for non-personnel expenses of the Department of Housing and Urban Development: Provided further, That any funding made available under this heading used by the Secretary for technology shall be transferred to and merged with funding provided to ‘‘Working Capital Fund.’’ O FFICE OF H EALTHY H OMES AND L EAD H AZARD C ONTROL For an additional amount for the ‘‘Lead Hazard Reduction’’, as authorized by section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, $100,000,000, to remain available until September 30, 2011: Provided, That funds shall be awarded first to appliHR 1 PP

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2

1 2

cant jurisdictions which had applied under the Lead-Based

3

Paint Hazard Control Grant Program Notice of Funding

4

Availability for fiscal year 2008, and were found in the

5

application review to be qualified for award, but were not 6 7

awarded because of funding limitations, and that any funds

8

which remain after reservation of funds for such grants

9

shall be added to the amount of funds to be awarded under

10

the Lead-Based Paint Hazard Control Grant Program No-

11

tice of Funding Availability for fiscal year 2009: Provided

12 13 14 15

further, That each applicant jurisdiction for the LeadBased Paint Hazard control Grant Program Notice of Funding Availability for fiscal year 2009 shall submit a detailed plan and strategy that demonstrates adequate capacity that is acceptable to the Secretary to carry out the proposed use of funds: Provided further, That recipients of funds under this heading shall obligate 100 percent of such funds within 1 year of the date of enactment of this Act, expend at least 75 percent of such funds within 2 years of the date on which funds become available to such jurisdictions for obligation, and expend 100 percent of such funds within 3 years of such date: Provided further, That if a recipient fails to comply with either the 1-year obligation requirement or the 2-year expenditure requirement, the HR 1 PP

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1

2

2

Secretary shall recapture all remaining funds awarded to

3

the recipient and reallocate such funds to recipients that

4

are in compliance with those requirements: Provided

5

further, That if a recipient fails to comply with the 3-year 6 7

expenditure requirement, the Secretary shall recapture the

8

balance of the funds awarded to the recipient: Provided

9

further, That in administering funds provided in this

10 11

heading, the Secretary may waive any provision of any statute or regulation that the Secretary administers in

12 13 14 15

connection with the obligation by the Secretary or the use by the recipient of these funds except for requirements imposed by this heading and requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that such waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of the statute or regulation: Provided further, That, of the funds made available under this heading, up to 1 percent shall be available for staffing, training, technical assistance, technology, monitoring, research and evaluation activities: Provided further, That any funds made available under this heading used by the Secretary for personnel expenses shall be transferred to and merged with funding provided HR 1 PP

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1 2

to ‘‘Personnel Compensation and Benefits, Office of

3

Healthy Homes and Lead Hazard Control’’: Provided

4

further, That any funds made available under this heading

5

used by the Secretary for training or other administrative 6 7

expenses shall be transferred to and merged with funding

8

provided to ‘‘Administration, Operations, and

9

Management’’, for non-personnel expenses of the

10 11

Department of Housing and Urban Development: Provided further, That any funds made available under this heading

12 13 14 15

used by the Secretary for technology shall be transferred to and merged with the funding provided to ‘‘Working Capital Fund’’. O FFICE OF INSPECTOR G ENERAL For an additional amount for the necessary salaries and expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $2,750,000, to remain available until September 30, 2011, and an additional $12,250,000 for such purposes, to remain available until September 30, 2012: Provided, That the Inspector General shall have independent authority over all personnel issues within this office.

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1

2

2

INFORMATION TECHNOLOGY

3 4

SEC. 1301. SHORT TITLE.

This title may be cited as the ‘‘Health Information

5 6 7 8 9 10

Technology for Economic and Clinical Health Act’’ or the ‘‘HITECH Act’’.

Subtitle A—Promotion of Health Information Technology PART I—IMPROVING HEALTH CARE QUALITY,

11

SAFETY, AND EFFICIENCY

12 SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND

13 ADOPTION.

14 15

The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by adding at the end the following:

‘‘TITLE XXX—HEALTH INFORMATIONTECHNOLOGYAND QUALITY ‘‘SEC. 3000. DEFINITIONS.

‘‘In this title: ‘‘(1) C

ERTIFIED EHR TECHNOLOGY.—The

term

‘certified EHR technology’ means a qualified electronic health record and that is certified pursuant to section 3001(c)(5) as meeting standards adopted under section 3004 that are applicable to the type of record involved (as determined by the Secretary, such HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

as an ambulatory electronic health record for office-

3

based physicians or an inpatient hospital electronic

4

health record for hospitals).

5

‘‘(2) E

NTERPRISE INTEGRATION .—The

term ‘en-

6 7

terprise integration’ means the electronic linkage of

8

health care providers, health plans, the government,

9

and other interested parties, to enable the electronic

10 11

exchange and use of health information among all the components in the health care infrastructure in ac-

12 13 14 15

cordance with applicable law, and such term includes related application protocols and other related standards. ‘‘(3) H

EALTH CARE PROVIDER .—The

term ‘health

care provider’ means a hospital, skilled nursing facility, nursing facility, home health entity, or other long-term care facility, health care clinic, community mental health center (as defined in section 1913(b)), renal dialysis facility, blood center, ambulatory surgical center described in section 1833(i) of the Social Security Act, emergency medical services provider, Federally qualified health center, group practice (as defined in section 1877(h)(4) of the Social Security Act), a pharmacist, a pharmacy, a laboratory, HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

a physician (as defined in section 1861(r) of the Social

3

Security Act), a practitioner (as described in sec tion

4

1842(b)(18)(C) of the Social Security Act), a provider

5

operated by, or under contract with, the Indian Health 6 7

Service or by an Indian tribe (as defined in the Indian

8

Self-Determination and Education Assistance Act),

9

tribal organization, or urban Indian organization (as

10 11

defined in section 4 of the Indian Health Care Improvement Act), a rural health clinic, a covered

12 13 14 15

entity under section 340B, and any other category of facility or clinician determined appropriate by the Secretary. ‘‘(4) H

EALTH INFORMATION .—The

term ‘health

information’ has the meaning given such term in section 1171(4) of the Social Security Act. ‘‘(5) H

EALTH INFORMATION TECHNOLOGY.—The

term ‘health information technology’ includes hardware, software, integrated technologies and related licenses, intellectual property, upgrades, and packaged solutions sold as services for use by health care entities for the electronic creation, maintenance, access or exchange of health information. ‘‘(6) H EALTH PLAN .—The term ‘health plan’ has HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the meaning given such term in section 1171(5) of the

3

Social Security Act.

4

‘‘(7) H

IT POLICY COMMITTEE .—The

term ‘HIT

5

Policy Committee’ means such Committee established 6 7

under section 3002(a). ‘‘(8) H

8 9 10

IT STANDARDS COMMITTEE .—The

term ‘HIT

Standards Committee’ means such Committee established under section 3003(a).

11

‘‘(9) I NDIVIDUALLY IDENTIFIABLE HEALTH IN -

12 13 14 15

FORMATION .—The

term ‘individually identifiable

health information’ has the meaning given such term in section 1171(6) of the Social Security Act. ‘‘(10) L

ABORATORY.—The

term ‘laboratory’ has

the meaning given such term in section 353(a). ‘‘(11) N

ATIONAL COORDINATOR .—The

term ‘Na-

tional Coordinator’ means the head of the Office of the National Coordinator for Health Information Technology established under section 3001(a). ‘‘(12) P HARMACIST .—The term ‘pharmacist’ has the meaning given such term in section 804(2) of the Federal Food, Drug, and Cosmetic Act. ‘‘(13) Q RECORD .—The

UALIFIED

ELECTRONIC HEALTH

term ‘qualified electronic health

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

record’ means an electronic record of health-related

3

information on an individual that—

4

‘‘(A) includes patient demographic and

5

clinical health information, such as medical his6

tory and problem lists; and

7

‘‘(B) has the capacity—

8

‘‘(i) to provide clinical decision sup-

9 10

port;

11

‘‘(ii) to support physician order entry;

12

‘‘(iii) to capture and query information 13

relevant to health care quality; and ‘‘(iv) to

14

exchange electronic health information with,

15

and integrate such information from other sources. ‘‘(14) S

TATE .—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) E

STABLISHMENT .—There

is established within the

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1

2

2

Department of Health and Human Services an Office of

3

the National Coordinator for Health Information Tech-

4

nology (referred to in this section as the ‘Office’). The

5

Office shall be headed by a National Coordinator who 6 7 8 9 10 11

shall be ap pointed 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

12 13 14 15

with the development of a nationwide health information technology infrastructure that allows for the electronic use and exchange of information and that— ‘‘(1) ensures that each patient’s health information is secure and protected, in accordance with applicable law; ‘‘(2) improves health care quality, reduces medical errors, and advances the delivery of patient-centered medical care; ‘‘(3) reduces health care costs resulting from inefficiency, medical errors, inappropriate care, duplicative care, and incomplete information; ‘‘(4) provides appropriate information to help guide medical decisions at the time and place of care; HR 1 PP

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2

1

‘‘(5) ensures the inclusion of meaningful public

2 3

input in such development of such infrastructure;

4

‘‘(6) improves the coordination of care and infor-

5

mation among hospitals, laboratories, physician of6 7

fices, and other entities through an effective infra-

8

structure for the secure and authorized exchange of

9

health care information;

10 11

‘‘(7) improves public health activities and facilitates the early identification and rapid response to

12 13 14

public health threats and emergencies, including bioterror events and infectious disease outbreaks; ‘‘(8) facilitates health and clinical research and

15

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) D UTIES OF THE N ATIONAL C OORDINATOR .— ‘‘(1) S TANDARDS .—The

National Coordinator shall—

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2

1 2

‘‘(A) review and determine whether to en-

3

dorse each standard, implementation specifica-

4

tion, and certification criterion for the electronic

5

exchange and use of health information that is 6

recommended by the HIT Standards Committee

7 8

under section 3003 for purposes of adoption

9

under section 3004;

10

‘‘(B) make such determinations under sub-

11

paragraph (A), and report to the Secretary such

12

determinations, not later than 45 days after the

13

date the recommendation is received by the Coor-

14

dinator;

15

‘‘(C) review Federal health information technology investments to ensure that Federal health information technology programs are meeting the objectives of the strategic plan published under paragraph (3); and ‘‘(D) provide comments and advice regarding specific Federal health information technology programs, at the request of the Office of Management and Budget. ‘‘(2) H IT POLICY COORDINATION .— ‘‘(A) I N GENERAL.—The National CoordiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

nator shall coordinate health information tech-

3

nology policy and programs of the Department

4

with those of other relevant executive branch

5

agencies with a goal of avoiding duplication of 6

efforts and of helping to ensure that each agency

7 8

undertakes health information technology activi-

9

ties primarily within the areas of its greatest ex-

10

pertise and technical capability and in a manner

11

towards a coordinated national goal.

12

‘‘(B) H

13 14

TEES .—The

15

IT POLICY AND STANDARDS COMMIT -

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) S TRATEGIC PLAN .— ‘‘(A) I N 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

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2

1 2

as of June 3, 2008) to include specific objectives,

3

milestones, and metrics with respect to the fol-

4

lowing:

5

‘‘(i) The electronic exchange and use of 6

health information and the enterprise inte-

7

gration of such information.

8 9

‘‘(ii) The utilization of an electronic

10

health record for each person in the United

11

States by 2014.

12

‘‘(iii) The incorporation of privacy and

13

security protections for the electronic

14

exchange of an individual’s individually

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Secretary, the National Coordinator, the

3

HIT Policy Committee, the HIT Standards

4

Committee, and other health information

5

exchanges and other relevant entities. 6

‘‘(vi) Methods to foster the public un-

7 8

derstanding of health information tech-

9

nology.

10

‘‘(vii) Strategies to enhance the use of

11

health information technology in improving

12

the quality of health care, reducing medical

13

errors, reducing health disparities, improv-

14

ing public health, increasing prevention and

15

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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) C

2 3

OLLABORATION .—The

strategic plan

shall be updated through collaboration of public

4

and private entities.

5

‘‘(C) M

EASURABLE OUTCOME GOALS .—The

6

strategic plan update shall include measurable

7

outcome goals.

8 9

‘‘(D) P UBLICATION .—The National Coordi-

10

nator shall republish the strategic plan, including

11

all updates.

12

‘‘(4) W EBSITE.—The National Coordinator shall

13 14 15

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) H

ARMONIZATION .—The

Secretary may rec-

ognize an entity or entities for the purpose of harmonizing or updating standards and implementation specifications in order to achieve uniform and consistent implementation of the standards and implementation specifications. ‘‘(6) C ERTIFICATION .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) I N GENERAL.—The National Coordi-

2 3

nator, in consultation with the Director of the

4

National Institute of Standards and Technology,

5

shall recognize a program or programs for the 6

voluntary certification of health information

7 8

technology as being in compliance with applica-

9

ble certification criteria adopted under this sub-

10

title. Such program shall include, as appropriate,

11

testing of the technology in accordance with

12

section 14201(b) of the Health Information

13

Technology for Economic and Clinical Health

14

Act.

15

‘‘(B) C

ERTIFICATION

SCRIBED .—In

CRITERIA

DE -

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) R EPORTS AND PUBLICATIONS .— ‘‘(A) R

EPORT ON ADDITIONAL FUNDING OR

AUTHORITY NEEDED .—Not

later than 12 months

after the date of the enactment of this title, the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

National Coordinator shall submit to the appro-

3

priate committees of jurisdiction of the House of

4

Representatives and the Senate a report on any

5

additional funding or authority the Coordinator 6

or the HIT Policy Committee or HIT Standards

7 8

Committee requires to evaluate and develop

9

standards, implementation specifications, and

10

certification criteria, or to achieve full participa-

11

tion of stakeholders in the adoption of a nation-

12

wide health information technology infrastructure

13

that allows for the electronic use and exchange of

14

health information.

15

‘‘(B) I MPLEMENTATION 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 ap plicable to and usable in whole or in part by other health care providers. ‘‘(C) A

SSESSMENT OF IMPACT OF HIT ON

COMMUNITIES WITH HEALTH DISPARITIES AND

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

UNINSURED , UNDERINSURED , AND MEDICALLY

3

UNDERSERVED AREAS .—The

4

National Coordinator

shall assess and publish the impact of health

5

information technology in communities with 6

health disparities and in areas with a high

7 8

proportion of individuals who are uninsured,

9

underinsured, and medically underserved indi-

10

viduals (including urban and rural areas) and

11

identify practices to increase the adoption of

12

such technology by health care providers in such

13

communities, and the use of health information

14

technology to reduce and better manage chronic

15

diseases. ‘‘(D) E VALUATION 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) R

ESOURCE REQUIREMENTS .—The

National

Coordinator shall estimate and publish resources required annually to reach the goal of utilization HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of an electronic health record for each person in

3

the United States by 2014, including—

4

(i) the required level of Federal fund-

5

ing; 6

(ii) expectations for regional, State,

7

and private investment;

8 9

(iii) the expected contributions by vol-

10

unteers to activities for the utilization of

11

such records; and

12

(iv) the resources needed to establish

13

or expand education programs in medical

14

and health informatics and health

15

information management to train health care and information technology students and provide a health information technology workforce sufficient to ensure the rapid and effective deployment and utilization of health information technologies. ‘‘(7) A

SSISTANCE .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

to such groups and entities to participate under,

3

whether in whole or in part, the National Technology

4

Transfer Act of 1995 (15 U.S.C. 272 note).

5

‘‘(8) G OVERNANCE FOR NATIONWIDE HEALTH IN 6 7

FORMATION NETWORK .—The

National Coordinator

8

shall establish a governance mechanism for the na-

9

tionwide health information network.

10

‘‘(d) D ETAIL OF FEDERAL E MPLOYEES .—

11

‘‘(1) I N GENERAL.—Upon the request of the Na-

12

tional Coordinator, the head of any Federal agency is 13 14 15

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) E

FFECT 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) A

CCEPTANCE OF DETAILEES .—Notwith-

HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

standing any other provision of law, the Office may

3

accept detailed personnel from other Federal agencies

4

without regard to whether the agency described under

5

paragraph (1) is reimbursed. 6 7

‘‘(e) C HIEF PRIVACY O FFICER OF THE O FFICE OF THE

8

N ATIONAL C OORDINATOR .—Not later than 12 months after

9

the date of the enactment of this title, the Secretary shall

10 11

appoint a Chief Privacy Officer of the Office of the National Coordinator, whose duty it shall be to advise the

12 13 14 15

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) E

STABLISHMENT .—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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

‘‘(b) D UTIES .—

3 4 5

‘‘(1) R

ECOMMENDATIONS ON HEALTH INFORMATION

TECHNOLOGY INFRASTRUCTURE .—The

HIT Pol icy

Committee shall recommend a policy framework for

6 7

the development and adoption of a nationwide health

8

information technology infrastructure that permits the

9

electronic exchange and use of health information as

10 11

is consistent with the strategic plan under section 3001(c)(3) and that includes the recommendations

12

under paragraph (2). The Committee shall update 13 14 15

such recommendations and make new recommendations as appropriate. ‘‘(2) S

PECIFIC AREAS OF STANDARD DEVELOP-

MENT .—

‘‘(A) I N 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 criHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

teria among the areas so recommended. Such

3

standards and implementation specifications

4

shall include named standards, architectures,

5

and software schemes for the authentication and 6

security of individually identifiable health infor

7 8

mation and other information as needed to ensure

9

the reproducible development of common so-

10

lutions across disparate entities.

11

‘‘(B) A

REAS REQUIRED FOR CONSIDER -

12 ATION .—For

13

purposes of subparagraph (A), the

HIT Policy Committee shall make recommenda-

14

tions for at least the following areas:

15

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

disclosure of limited data sets of such infor-

3

mation.

4

‘‘(ii) A nationwide health information

5

technology infrastructure that allows for the 6

electronic use and accurate exchange of

7

health information.

8 9

‘‘(iii) The utilization of a certified elec-

10

tronic health record for each person in the

11

United States by 2014.

12

‘‘(iv) Technologies that as a part of a

13

qualified electronic health record allow for

14

an accounting of disclosures made by a cov-

15

ered 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

continuity of health care among health care

3

providers, by reducing medical errors, by

4

improving population health, reducing

5

chronic disease, and by advancing research 6

and education.

7 8

‘‘(vi) The use of electronic systems to

9

ensure the comprehensive collection of pa-

10

tient demographic data, including, at a

11

minimum, race, ethnicity,

12

primary language, and gender

13

information.

14

‘‘(vii) Technologies and design features

15

that address the needs of children and other vulnerable populations. ‘‘(C) O THER 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; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

‘‘(II) biosurveillance and public

2 3

health;

4

‘‘(III) medical and clinical

5

research; and 6

‘‘(IV) drug safety.

7 8

‘‘(ii) Self-service technologies that fa-

9

cilitate the use and exchange of patient in-

10

formation and reduce wait times.

11

‘‘(iii) Telemedicine technologies, in

12

order to reduce travel requirements for pa13

tients in remote areas.

14

‘‘(iv) Technologies that facilitate home

15

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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(ix) Methods, guidelines, and safe-

2 3

guards to facilitate secure access to patient

4

information by a family member, caregiver,

5

or guardian acting on behalf of a patient 6

due to age-related and other disability, cog-

7 8

nitive impairment, or dementia that prevents

9

a patient from accessing the patient’s

10

individually identifiable health information.

11

‘‘(x) Any other technology that the HIT

12

Policy Committee finds to be among the

13

technologies with the greatest potential to

14

improve the quality and efficiency of health

15

care. ‘‘(3) F ORUM .—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) C

ONSISTENCY WITH EVALUATION CONDUCTED

UNDER MIPPA .—

‘‘(A) R

EQUIREMENT FOR CONSISTENCY.—

The

HIT Policy Committee shall ensure that recommendations made under paragraph (2)(B)(vi) are consistent with the evaluation conducted HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

under section 1809(a) of the Social Security Act.

3

‘‘(B) S COPE.—Nothing in subparagraph (A)

4

shall be construed to limit the recommendations

5

under paragraph (2)(B)(vi) to the elements de6

scribed in section 1809(a)(3) of the Social Secu-

7

rity Act.

8 9 10 11

‘‘(C) T

IMING .—The

requirement under subparagraph

(A) shall be applicable to the extent that evaluations have been conducted under section 1809(a) of the

12 13 14

Social Security Act, regardless of whether the report described in subsection (b) of such section has been submitted. ‘‘(c) M EMBERSHIP AND O PERATIONS .—

15

‘‘(1) I N GENERAL.—The National Coordinator shall provide leadership in the establishment and operations of the HIT Policy Committee. ‘‘(2) M EMBERSHIP.—The HIT Policy Committee shall be composed of members to be appointed as follows: ‘‘(A) One member shall be appointed by the Secretary. ‘‘(B) One member shall be appointed by the Secretary of Veterans Affairs who shall represent the Department of Veterans Affairs. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

‘‘(C) One member shall be appointed by the

3

Secretary of Defense who shall represent the De-

4

partment of Defense.

5

‘‘(D) One member shall be appointed by the 6

Majority Leader of the Senate.

7

‘‘(E) One member shall be appointed by the

8 9

Minority Leader of the Senate.

10

‘‘(F) One member shall be appointed by the

11

Speaker of the House of Representatives.

12

‘‘(G) One member shall be appointed by the

13

Minority Leader of the House of Representatives.

14

‘‘(H) Eleven members shall be appointed by

15

the Comptroller General of the United States, of whom— ‘‘(i) three members shall represent patients or consumers; ‘‘(ii) one member shall represent health care providers; ‘‘(iii) one member shall be from a labor organization representing health care workers; ‘‘(iv) one member shall have expertise in privacy and security; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

‘‘(v) one member shall have expertise

2 3

in improving the health of vulnerable popu-

4

lations;

5

‘‘(vi) one member shall represent 6

health plans or other third party payers;

7

‘‘(vii) one member shall represent in-

8 9

formation technology vendors;

10

‘‘(viii) one member shall represent pur-

11

chasers or employers; and

12

‘‘(ix) one member shall have expertise

13

in health care quality measurement and re-

14

porting.

15

‘‘(3) C

HAIRPERSON AND VICE CHAIRPERSON .—

The

HIT Policy Committee shall designate one member to serve as the chairperson and one member to serve as the vice chairperson of the Policy Committee. ‘‘(4) N

ATIONAL COORDINATOR .—The

National

Coordinator shall serve as a member of the HIT Policy Committee and act as a liaison among the HIT Policy Committee, the HIT Standards Committee, and the Federal Government. ‘‘(5) P ARTICIPATION .—The members of the HIT Policy Committee appointed under paragraph (2) HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

shall represent a balance among various sectors of the

3

health care system so that no single sector unduly in-

4

fluences the recommendations of the Policy Com-

5

mittee. 6

‘‘(6) T ERMS .—

7 8

‘‘(A) I N GENERAL.—The terms of the mem-

9

bers of the HIT Policy Committee shall be for 3

10

years, except that the Comptroller General shall

11

designate staggered terms for the members first

12

appointed. 13

‘‘(B) V ACANCIES .—Any member appointed

14

to fill a vacancy in the membership of the HIT

15

Policy Committee that occurs prior to the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member’s term until a successor has been appointed. A vacancy in the HIT Policy Committee shall be filled in the manner in which the original appointment was made. ‘‘(7) O

UTSIDE INVOLVEMENT .—The

HIT Policy

Committee shall ensure an adequate opportunity for HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the participation of outside advisors, including indi-

3

viduals with expertise in—

4

‘‘(A) health information privacy and secu-

5

rity; 6

‘‘(B) improving the health of

7

vulnerable populations;

8 9

‘‘(C) health care quality and patient safety,

10

including individuals with expertise in the meas-

11

urement and use of health information technology

12

to capture data to improve health care quality

13

and patient safety;

14

‘‘(D) long-term care and aging services;

15

‘‘(E) medical and clinical research; and ‘‘(F) data exchange and developing health information technology standards and new health information technology. ‘‘(8) Q UORUM .—Ten members of the HIT Policy Committee shall constitute a quorum for purposes of voting, but a lesser number of members may meet and hold hearings. ‘‘(9) F AILURE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

appoint one or more members of the HIT Policy

3

Committee has not appointed the full number of

4

members that such paragraph authorizes such official

5

to appoint— 6

‘‘(A) the number of members that such offi-

7 8

cial is authorized to appoint shall be reduced to

9

the number that such official has appointed as of

10

that date; and

11

‘‘(B) the number prescribed in paragraph

12

(8) as the quorum shall be reduced to the smallest

13

whole number that is greater than one-half of the

14

total number of members who have been ap-

15

pointed as of that date. ‘‘(10) C

ONSIDERATION .—The

National Coordi-

nator shall ensure that the relevant recommendations and comments from the National Committee on Vital and Health Statistics are considered in the development of policies. ‘‘(d) A

PPLICATION 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) P UBLICATION .—The Secretary shall provide for publication in the Federal Register and the posting on the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Internet website of the Office of the National Coordinator

3

for Health Information Technology of all policy rec-

4

ommendations made by the HIT Policy Committee under

5

this section. 6 7 8 9 10 11 12

‘‘SEC. 3003. HIT STANDARDS COMMITTEE.

‘‘(a) E

STABLISHMENT .—There

is established a com-

mittee 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 pur-

13 14 15

poses 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) D UTIES .— ‘‘(1) S TANDARD DEVELOPMENT .— ‘‘(A) I N 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 HR 1 PP

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1 2

Committee. The HIT Standards Committee shall

3

update such recommendations and make new

4

recommendations as appropriate, including in re-

5

sponse to a notification sent under section 6

3004(b)(2). Such recommendations shall be con-

7 8

sistent with the latest recommendations made by

9

the HIT Policy Committee.

10

‘‘(B) P ILOT TESTING OF STANDARDS AND

11

IMPLEMENTATION SPECIFICATIONS .—In

the de-

12

velopment, harmonization, or recognition of

13

standards and implementation specifications, the

14

HIT Standards Committee shall, as appropriate,

15

provide for the testing of such standards and specifications by the National Institute for Standards and Technology under section 14201 of the Health Information Technology for Economic and Clinical Health Act. ‘‘(C) C

ONSISTENCY.—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) F ORUM .—The HIT HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

Standards Committee shall serve as a forum for the

3

participation of a broad range of stakeholders to

4

provide input on the development, harmonization, and

5

recognition of standards, implementation 6 7

specifications, and certification criteria necessary for

8

the development and adoption of a nationwide health

9

information technology infrastructure that allows for

10

the electronic use and exchange of health information.

11

‘‘(3) S

CHEDULE .—Not

later than 90 days after

12 13 14 15

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 HR 1 PP

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1 2

subsection.

3

‘‘(5) C

4

ONSIDERATION .—The

National Coordinator

shall ensure that the relevant recommendations and

5

comments from the National Committee on Vital and 6 7 8 9

Health Statistics are considered in the development of standards. ‘‘(c) M EMBERSHIP AND O PERATIONS .—

10 11

‘‘(1) I N GENERAL.—The National Coordinator shall provide leadership in the establishment and op-

12

erations of the HIT Standards Committee. 13

‘‘(2) M EMBERSHIP.—The membership of the HIT

14 15

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) B

ROAD PARTICIPATION .—There

is broad

participation in the HIT Standards Committee by a variety of public and private stakeholders, either through membership in the Committee or through another means. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

‘‘(4) C

2 3 4

HAIRPERSON ; VICE CHAIRPERSON .—The

HIT Standards Committee may designate one member to serve as the chairperson and one member to serve

5

as the vice chairperson. 6

‘‘(5) D

7

EPARTMENT

MEMBERSHIP.—The

Secretary

8

shall be a member of the HIT Standards Committee.

9

The National Coordinator shall act as a liaison among

10 11

the HIT Standards Committee, the HIT Policy Committee, and the Federal Government.

12

‘‘(6) B

13 14 15

ALANCE AMONG SECTORS .—In

developing

the procedures for conducting the activities of the HIT Standards Committee, the HIT Standards Committee shall act to ensure a balance among various sectors of the health care system so that no single sector unduly influences the actions of the HIT Standards Committee. ‘‘(7) A SSISTANCE.—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 HR 1 PP

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of their mission.

3

‘‘(d) O

4

PEN AND

PUBLIC PROCESS .—In providing for the

establishment of the HIT Standards Committee pursuant to

5

subsection (a), the Secretary shall ensure the following: 6

‘‘(1) C

7

ONSENSUS APPROACH ; OPEN PROCESS .—

8

The HIT Standards Committee shall use a consensus

9

approach and a fair and open process to support the

10 11

development, harmonization, and recognition of standards described in subsection (a)(1).

12

‘‘(2) P ARTICIPATION OF OUTSIDE ADVISERS .— The

13 14 15

HIT Standards Committee shall ensure an adequate opportunity for the participation of outside advisors, including individuals with expertise in— ‘‘(A) health information privacy; ‘‘(B) health information security; ‘‘(C) health care quality and patient safety, including individuals with expertise in utilizing health information technology to improve healthcare quality and patient safety; ‘‘(D) long-term care and aging services; and ‘‘(E) data exchange and developing health information technology standards and new HR 1 PP

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2

1 2

health information technology.

3

‘‘(3) O PEN MEETINGS .—Plenary and other regu-

4

larly scheduled formal meetings of the HIT Standards

5

Committee (or established subgroups thereof) shall be 6 7

open to the public. ‘‘(4) P UBLICATION OF MEETING NOTICES AND

8 9 10 11

MATERIALS PRIOR TO MEETINGS .—The

HIT Stand ards

Committee shall develop and maintain an Internet website on which it publishes, prior to each meeting, a

12 13 14

meeting notice, a meeting agenda, and meeting materials. ‘‘(5) O PPORTUNITY FOR PUBLIC COMMENT .—The

15

HIT Standards Committee shall develop a process that allows for public comment during the process by which the Entity develops, harmonizes, or recognizes standards and implementation specifications. ‘‘(e) V OLUNTARY C ONSENSUS S TANDARD B ODY.—The provisions of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) and the Office of Management and Budget circular 119 shall apply to the HIT Standards Committee. ‘‘(f) P UBLICATION .—The Secretary shall provide for publication in the Federal Register and the posting on the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Internet website of the Office of the National Coordinator

3

for Health Information Technology of all recommendations

4 5

made by the HIT Standards Committee under this section. ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC

6 OMMENDATIONS; ADOPTION OF INITIAL SET

7 OF STANDARDS, IMPLEMENTATION SPECI

8

FICATIONS, AND CERTIFICATION CRITERIA.

9 10

‘‘(a) P ROCESS FOR A DOPTION OF E NDORSED R EC -

11

OMMENDATIONS .—

12 13 14

‘‘(1) R

EVIEW OF ENDORSED STANDARDS , IMPLE -

MENTATION SPECIFICATIONS , AND CERTIFICATION CRI-

15 TERIA .—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) D ETERMINATION PLEMENTATION

TO ADOPT STANDARDS , IM -

SPECIFICATIONS ,

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AND

CERTIFICATION

2

1 2

CRITERIA .—If

3

the Secretary determines—

‘‘(A) to propose adoption of any grouping of

4

such standards, implementation specifications,

5

or certification criteria, the Secretary shall, by 6

regulation, determine whether or not to adopt

7 8

such grouping of standards, implementation

9

specifications, or certification criteria; or

10

‘‘(B) not to propose adoption of any group-

11

ing of standards, implementation specifications,

12

or certification criteria, the Secretary shall notify

13

the National Coordinator and the HIT Standards

14

Committee in writing of such deter mination and

15

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) A

DOPTION OF S TANDARDS ,

S PECIFICATIONS ,

AND

I

MPLEMENTATION

C ERTIFICATION C RITERIA.—

‘‘(1) IN GENERAL.—Not later than December 31, 2009, the Secretary shall, through the rulemaking process described in section 3003, adopt an initial set HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of standards, implementation specifications, and cer-

3

tification criteria for the areas required for consider-

4

ation under section 3002(b)(2)(B).

5

‘‘(2) A PPLICATION OF CURRENT STANDARDS ,

IM -

6 7

PLEMENTATION SPECIFICATIONS , AND CERTIFICATION

8

CRITERIA .—The

9

tions, and certification criteria adopted before the

10 11

standards, implementation specifica-

date of the enactment of this title through the process existing through the Office of the National Coordi-

12 13 14 15

nator for Health Information Technology may be applied towards meeting the requirement of paragraph (1). ‘‘(3) S

UBSEQUENT STANDARDS ACTIVITY.—The

Secretary shall adopt additional standards, imple mentation specifications, and certification criteria as necessary and consistent with the schedule published under section 3003(b)(2). ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND ARDS AND IMPLEMENTATION SPECIFICA TIONS 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

13111 of the Health Information Technology for Economic

3

and Clinical Health Act.

4

‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT

5

ED STANDARDS AND IMPLEMENTATION SPEC

6 IFICATIONS BY PRIVATE ENTITIES.

7 8 9

‘‘(a) IN G ENERAL.—Except as provided under section 13112 of the Health Information Technology for Economic

10

and Clinical Health Act, any standard or implementation

11

specification adopted under section 3004 shall be

12

voluntary with respect to private entities.

13

‘‘(b) R ULE OF C ONSTRUCTION .—Nothing in this subtitle 14 15

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) I N G ENERAL.—The National Coordinator shall support the development and routine updating of qualified electronic health record technology (as defined in section 3000) consistent with subsections (b) and (c) and make available such qualified electronic health record technology unless the Secretary and the HIT Policy

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2

1 2

Committee determine through an assessment that the needs

3

and demands of providers are being substantially and

4

adequately met through the marketplace.

5

‘‘(b) C

ERTIFICATION .—In

making such EHR tech-

6 7

nology publicly available, the National Coordinator shall

8

ensure that the qualified EHR technology described in sub-

9

section (a) is certified under the program developed under

10 11

section 3001(c)(3) to be in compliance with applicable standards adopted under section 3003(a).

12 13 14 15

‘‘(c) A UTHORIZATION T O C HARGE A N OMINAL 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) R

ULE OF C ONSTRUCTION .—Nothing

in this section

shall be construed to require that a private or govern ment entity adopt or use the technology provided under this section. SEC. 3008. TRANSITIONS.

‘‘(a) ONCHIT.—Nothing in section 3001 shall be conHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

strued as requiring the creation of a new entity to the

3

extent that the Office of the National Coordinator for

4

Health Information Technology established pursuant to

5

Executive Order 13335 is consistent with the provisions of 6 7

section 3001.

8

‘‘(b) N ATIONAL EH EALTH C OLLABORATIVE .—Nothing in

9

sections 3002 or 3003 or this subsection shall be construed

10 11

as prohibiting the National eHealth Collaborative from modifying its charter, duties, membership, and any other

12 13 14 15

structure or function required to be consistent with the requirements of a voluntary consensus standards body so as to allow the Secretary to recognize the National eHealth Collaborative as the HIT Standards Committee. ‘‘(c) C

ONSISTENCY OF R ECOMMENDATIONS .—In

carrying

out section 3003(b)(1)(A), until recommendations are made by the HIT Policy Committee, recommendations of the HIT Standards Committee shall be consistent with the most recent recommendations made by such AHIC Successor, Inc. ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.

‘‘(a) IN G ENERAL.—With respect to the relation of this title to HIPAA privacy and security law: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(1) This title may not be construed as having

3

any effect on the authorities of the Secretary under

4

HIPAA privacy and security law.

5

‘‘(2) The purposes of this title include ensuring 6 7

that the health information technology standards and

8

implementation specifications adopted under section

9

3004 take into account the requirements of HIPAA

10 11

privacy and security law. ‘‘(b) D

EFINITION .—For

purposes of this section, the

12 13

term ‘HIPAA privacy and security law’ means— ‘‘(1) the provisions of part C of title XI of the

14 15

Social Security Act, section 264 of the Health Insurance Portability and Accountability Act of 1996, and subtitle D of the Health Information Technology for Economic and Clinical Health Act; and ‘‘(2) regulations under such provisions.’’. SEC. 13102. TECHNICAL AMENDMENT.

Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, or D’’. PART II—APPLICATION AND USE OF ADOPTED HEALTHINFORMATIONTECHNOLOGY STANDARDS; REPORTS HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS AND IMPLEMENTA

3 4 5 6

TION SPECIFICATIONS.

(a) S

PENDING ON

H EALTH INFORMATION T ECHNOLOGY

S YSTEMS .—As each agency (as defined in the Executive

7 8 9

Order issued on August 22, 2006, relating to promoting quality and efficient health care in Federal government

10

administered or sponsored health care programs) im-

11

plements, acquires, or upgrades health information tech-

12 13

nology systems used for the direct exchange of individually identifiable health information between agencies and with

14 15

non-Federal entities, it shall utilize, where available, health information technology systems and products that meet standards and implementation specifications adopted under section 3004(b) of the Public Health Service Act, as added by section 13101. (b) F EDERAL INFORMATION C OLLECTION A CTIVITIES .—With

respect to a standard or implementation speci-

fication adopted under section 3004(b) of the Public Health Service Act, as added by section 13101, the President shall take measures to ensure that Federal activities involving the broad collection and submission of health information are consistent with such standard or implementation speci HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

fication, respectively, within three years after the date of

3

such adoption.

4

(c) A

PPLICATION OF D EFINITIONS .—The

definitions

5

contained in section 3000 of the Public Health Service Act, 6 7 8 9 10 11 12

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 adminis-

13 14 15

tered or sponsored health care programs) shall require in contracts or agreements with health care providers, health plans, or health insurance issuers that as each provider, plan, or issuer implements, acquires, or upgrades health information technology systems, it shall utilize, where available, health information technology systems and products that meet standards and implementation specifications adopted under section 3004(b) of the Public Health Service Act, as added by section 13101. SEC. 13113. STUDY AND REPORTS.

(a) R EPORT ON A DOPTION OF N ATIONWIDE S YSTEM .— Not later than 2 years after the date of the enactment of this Act and annually thereafter, the Secretary of Health and HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Human Services shall submit to the appropriate com

3

mittees of jurisdiction of the House of Representatives and

4

the Senate a report that—

5

(1) describes the specific actions that have been 6 7

taken by the Federal Government and private entities

8

to facilitate the adoption of a nationwide system for

9

the electronic use and exchange of health information;

10 11

(2) describes barriers to the adoption of such a

12 13

nationwide system; and (3) contains recommendations to achieve full im-

14 15

plementation of such a nationwide system. (b) R

EIMBURSEMENT INCENTIVE

(1) S

TUDY.—The

S TUDY AND R EPORT .—

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) R

EPORT .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Representatives and the Senate a report on the study

3

carried out under paragraph (1).

4

(c) A

GING

S ERVICES T ECHNOLOGY S TUDY AND R EPORT .—

5

(1) I N GENERAL.—The Secretary of Health and 6 7

Human Services shall carry out, or contract with a

8

private entity to carry out, a study of matters relating

9

to the potential use of new aging services technology

10 11

to assist seniors, individuals with disabilities, and their caregivers throughout the aging process.

12

(2) M ATTERS TO BE STUDIED .—The study under

13 14

paragraph (1) shall include— (A) an evaluation of—

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

technology in other countries that may be

3

applied in the United States; and (B)

4

identification of—

5

(i) barriers to innovation in aging 6

services technology and devising strategies

7

for removing such barriers; and

8 9

(ii) barriers to the adoption of aging

10

services technology by health care providers

11

and consumers and devising strategies to re-

12

moving such barriers.

13

(3) R EPORT .—Not later than 24 months after the

14 15

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) D

EFINITIONS .—For

purposes of this

subsection: (A) A

GING 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) S

ENIOR .—The

term ‘‘senior’’ has such

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1

2

2

meaning as specified by the Secretary.

3

GENERAL PROVISIONS — HOPE FOR HOMEOWNERS

4 5

AMENDMENTS

S EC . 1211. Section 257 of the National Housing Act

6 7 8 9

(12 U.S.C. 1715z–23), as amended by the Emergency Eco nomic Stabilization Act of 2008 (Public Law 110–343), is amended—

10 11 12

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

13

(2) in subsection (k)(2), by striking ‘‘and the

14 15

mortgagor’’ and all that follows through the end and inserting ‘‘shall, upon any sale or disposition of the property to which the mortgage relates, be entitled to 25 percent of appreciation, up to the appraised value of the home at the time when the mortgage being refinanced under this section was originally made. The Secretary may share any amounts received under this paragraph with the holder of the eligible mortgage refinanced under this section.’’; (3) in subsection (i)— (A) by inserting ‘‘, after weighing maximization of participation with consideration for HR 1 PP

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2

1 2

the solvency of the program,’’ after ‘‘Secretary

3

shall’’;

4

(B) in paragraph (1), by striking ‘‘equal to

5

3 percent’’ and inserting ‘‘not more than 2 per6

cent’’; and

7 8

(C) in paragraph (2), by striking ‘‘equal to

9

1.5 percent’’ and inserting ‘‘not more than 1 per-

10

cent’’; and

11

(4) by adding at the end the following:

12

‘‘(x) A UCTIONS .—The Board shall, if feasible, establish 13 14 15

a structure and organize procedures for an auction to refinance eligible mortgages on a wholesale or bulk basis. ‘‘(y) C

OMPENSATION OF S ERVICERS .—To

provide in-

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

Subtitle B—Testing of Health Information Technology SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND

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2

1

TECHNOLOGY TESTING.

2 3

(a) PILOT T ESTING OF S TANDARDS AND IMPLEMENTATION

4

S PECIFICATIONS .—In coordination with the HIT Standards

5

Committee established under section 3003 of the Public

6

Health Service Act, as added by section 13101, with 7 8 9

respect to the development of standards and implementation specifications under such section, the

10

Director of the Na tional Institute for Standards and

11

Technology shall test such standards and implementation

12

specifications, as appropriate, in order to assure the

13 14 15

efficient implementation and use of such standards and implementation specifications. (b) VOLUNTARY T ESTING 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 HR 1 PP

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1 2

perform testing.

3

SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

4

(a) H

5

GRATION

EALTH

C ARE INFORMATION E NTERPRISE INTE -

R ESEARCH C ENTERS .—

6

(1) I N GENERAL.—The Director of the National

7 8 9 10 11 12

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 in

13 14 15

clude nonprofit entities and Federal Government laboratories) to establish multidisciplinary Centers for Health Care Information Enterprise Integration. (2) R

EVIEW ; COMPETITION .—Grants

shall be

awarded under this subsection on a merit-reviewed, competitive basis. (3) P URPOSE.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) the development and use of health infor-

2 3

mation technologies and other complementary

4

fields.

5

(4) R ESEARCH AREAS .—Research areas may in6 7

clude— (A) interfaces between human information

8 9

and communications technology systems;

10

(B) voice-recognition systems;

11

(C) software that improves interoperability

12

and connectivity among health information sys13

tems;

14 15

(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.

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2

1

(5) A

2 3 4

PPLICATIONS .—An

institution of higher

education (or a consortium thereof) seeking funding under this subsection shall submit an application to

5

the Director of the National Institute of Standards and 6 7

Technology at such time, in such manner, and

8

containing such information as the Director may re-

9

quire. The application shall include, at a minimum, a

10

description of—

11

(A) the research projects that will be under-

12

taken by the Center established pursuant to as-

13

sistance under paragraph (1) and the respective

14

contributions of the participating entities;

15

(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 informaHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

tion enterprise integration.

2 3 4

(b) N ATIONAL INFORMATION T ECHNOLOGY R ESEARCH AND D EVELOPMENT PROGRAM .—The National High-Performance

5

Computing Program established by section 101 of the 6 7

High-Performance Computing Act of 1991 (15 U.S.C.

8

5511) may review Federal research and development pro-

9

grams related to the development and deployment of health

10

information technology, including activities related to—

11

(1) computer infrastructure;

12

(2) data security; 13

(3) development of large-scale, distributed, reli-

14 15

able computing systems; (4) wired, wireless, and hybrid high-speed networking; (5) development of software and software-intensive systems; (6) human-computer interaction and information management technologies; and (7) the social and economic implications of information technology.

Subtitle C—Incentives for the Use of Health Information Technology I—GRANTS AND LOANS FUNDING HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

PART

2

1 2

SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PRO GRAMS.

3 4 5 6

Title XXX of the Public Health Service Act, as added by section 13101, is amended by adding at the end the following new subtitle:

7

9

‘‘Subtitle B—Incentives for the Use of Health Information Technology

10

‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE

8

11

HEALTH INFORMATION TECHNOLOGY INFRA

12 13

STRUCTURE.

‘‘(a) I N G ENERAL.—The Secretary of Health and

14 15

Human Services shall, using amounts appropriated under section 3018, invest in the infrastructure necessary to allow for and promote the electronic exchange and use of health information for each individual in the United States consistent with the goals outlined in the strategic plan developed by the National Coordinator (and, as available) under section 3001. To the greatest extent practicable, the Sec retary shall ensure that any funds so appropriated shall be used for the acquisition of health information technology that meets standards and certification criteria adopted before the date of the enactment of this title until such date as the standards are adopted under section 3004. The SecHR 1 PP

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2

1 2

retary shall invest funds through the different agencies with

3

expertise in such goals, such as the Office of the National

4

Coordinator for Health Information Technology, the

5

Health Resources and Services Administration, the Agency 6 7

for Healthcare Research and Quality, the Centers of

8

Medicare & Medicaid Services, the Centers for Disease

9

Control and Prevention, and the Indian Health Service to

10

support the following:

11

‘‘(1) Health information technology architecture

12 13 14 15

that will support the nationwide electronic exchange and use of health information in a secure, private, and accurate manner, including connecting health information exchanges, and which may include updating and implementing the infrastructure necessary within different agencies of the Department of Health and Human Services to support the electronic use and exchange of health information. ‘‘(2) Development and adoption of appropriate certified electronic health records for categories of providers not eligible for support under title XVIII or XIX of the Social Security Act for the adoption of such records. ‘‘(3) Training on and dissemination of informaHR 1 PP

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2

1 2

tion on best practices to integrate health information

3

technology, including electronic health records, into a

4

provider’s delivery of care, consistent with best prac-

5

tices learned from the Health Information Technology 6 7

Research Center developed under section 3012,

8

including community health centers receiving

9

assistance under section 330 of the Public Health

10 11

Service Act, covered entities under section 340B of such Act, and providers participating in one or more

12 13 14 15

of the programs under titles XVIII, XIX, and XXI of the Social Security Act (relating to Medicare, Medicaid, and the State Children’s Health Insurance Program). ‘‘(4) Infrastructure and tools for the promotion of telemedicine, including coordination among Federal agencies in the promotion of telemedicine. ‘‘(5) Promotion of the interoperability of clinical data repositories or registries. ‘‘(6) Promotion of technologies and best practices that enhance the protection of health information by all holders of individually identifiable health information. ‘‘(7) Improve and expand the use of health information technology by public health departments. HR 1 PP

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1

‘‘(8) Provide $300,000,000 to support regional

2 3 4

or sub-national efforts towards health information exchange.

5

‘‘(b) C

OORDINATION .—The

Secretary shall ensure

6 7 8 9 10 11

funds under this section are used in a coordinated manner with other health information promotion activities. ‘‘(c) A

DDITIONAL

U SE OF FUNDS .—In addition to using

funds as provided in subsection (a), the Secretary may use amounts appropriated under section 3018 to carry out

12 13 14 15

activities that are provided for under laws in effect on the date of enactment of this title. ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE MENTATION ASSISTANCE.

‘‘(a) H EALTH INFORMATION T ECHNOLOGY E XTENSION 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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

other Federal agencies with demonstrated experience and

3

expertise in information technology services, such as the

4

National Institute of Standards and Technology, in

5

developing and implementing this program. 6 7 8

‘‘(b) H EALTH INFORMATION T ECHNOLOGY R ESEARCH C ENTER .—

9

‘‘(1) IN GENERAL.—The Secretary shall create a

10

Health Information Technology Research Center (in

11

this section referred to as the ‘Center’) to provide

12 13 14 15

technical assistance and develop or recognize best practices to support and accelerate efforts to adopt, implement, and effectively utilize health information technology that allows for the electronic exchange and use of information in compliance with standards, implementation specifications, and certification criteria adopted under section 3004(b). ‘‘(2) INPUT .—The Center shall incorporate input from— ‘‘(A) other Federal agencies with demonstrated experience and expertise in information technology services such as the National Institute of Standards and Technology; ‘‘(B) users of health information technology, HR 1 PP

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2

1 2

such as providers and their support and clerical

3

staff and others involved in the care and care co

4

ordination of patients, from the health care and

5

health information technology industry; and 6

‘‘(C) others as appropriate.

7

‘‘(3) PURPOSES .—The purposes of the Center are

8 9

to—

10

‘‘(A) provide a forum for the exchange

11

of knowledge and experience;

12

‘‘(B) accelerate the transfer of lessons

13

learned from existing public and private sector

14

initiatives, including those currently receiving

15

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 elecHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tronic exchange of information across health care

3

settings and improve the quality of health care;

4

‘‘(E) provide technical assistance for the de-

5

velopment and dissemination of solutions to bar 6

riers to the exchange of electronic health

7

information; and

8 9

‘‘(F) learn about effective strategies to adopt

10

and utilize health information technology in

11

medically underserved communities.

12 13 14

‘‘(c) H

EALTH INFORMATION

T ECHNOLOGY R EGIONAL

E XTENSION C ENTERS .— ‘‘(1) I N GENERAL.—The Secretary shall provide

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subsection shall be consistent with the strategic plan

3

developed by the National Coordinator (and, as

4

available) under section 3001.

5

‘‘(2) A FFILIATION .—Regional centers shall be af6 7

filiated with any United States-based nonprofit insti-

8

tution or organization, or group thereof, that applies

9

and is awarded financial assistance under this sec

10 11

tion. Individual awards shall be decided on the basis of merit.

12

‘‘(3) O

13 14 15

BJECTIVE .—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 HR 1 PP

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2

1 2

health information technology, including elec-

3

tronic health records, to health care providers in

4

order to improve the quality of healthcare and

5

protect the privacy and security of health infor6

mation;

7

‘‘(D) participation, to the extent

8 9

practicable, in health information

10

exchanges;

11

‘‘(E) utilization, when appropriate, of the

12

expertise and capability that exists in federal

13

agencies other than the Department; and

14

‘‘(F) integration of health information tech-

15

nology, 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) R

EGIONAL 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: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) Public or not-for-profit hospitals or

2 3

critical access hospitals.

4

‘‘(B) Federally qualified health centers (as

5

defined in section 1861(aa)(4) of the Social Se6

curity Act).

7 8

‘‘(C) Entities that are located in rural and

9

other areas that serve uninsured, underinsured,

10

and medically underserved individuals (regardless

11

of whether such area is urban or rural).

12

‘‘(D) Individual or small group practices

13

(or a consortium thereof) that are primarily fo-

14

cused on primary care.

15

‘‘(5) F INANCIAL 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(6) N

2 3 4

OTICE OF PROGRAM DESCRIPTION AND

AVAILABILITY OF FUNDS .—The

Secretary shall publish in

the Federal Register, not later than 90 days after the

5

date of the enactment of this Act, a draft description of 6 7

the program for establishing regional centers under

8

this subsection. Such description shall include the

9

following:

10

‘‘(A) A detailed explanation of the program

11

and the programs goals.

12

‘‘(B) Procedures to be followed by the appli-

13

cants.

14

‘‘(C) Criteria for determining qualified ap-

15

plicants. ‘‘(D) Maximum support levels expected to be available to centers under the program. ‘‘(7) A PPLICATION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

assistance under this subsection and utilization

3

of health information technology appropriate to

4

the needs of particular categories of health care

5

providers; 6

‘‘(B) the types of service to be provided to

7

health care providers;

8 9

‘‘(C) geographical diversity and extent of

10

service area; and

11

‘‘(D) the percentage of funding and amount

12

of in-kind commitment from other sources.

13

‘‘(8) B IENNIAL EVALUATION .—Each regional center

14 15

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) C

ONTINUING SUPPORT .—After

the second

year of assistance under this subsection a regional HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

center may receive additional support under this sub-

3

section if it has received positive evaluations and a

4

finding by the Secretary that continuation of Federal

5

funding to the center was in the best interest of provi6 7 8 9

sion of health information technology extension services. ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMA

10 11 12

TION TECHNOLOGY.

‘‘(a) IN G ENERAL.—The Secretary, acting through the National Coordinator, shall establish a program in accord-

13 14 15

ance with this section to facilitate and expand the electronic movement and use of health information among organizations according to nationally recognized standards. ‘‘(b) P LANNING G RANTS .—The Secretary may award a grant to a State or qualified State-designated entity (as described in subsection (d)) that submits an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify, for the purpose of planning activities described in subsection (b). ‘‘(c) I MPLEMENTATION G RANTS .—The Secretary may award a grant to a State or qualified State designated entity that— HR 1 PP

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2

1

‘‘(1) has submitted, and the Secretary has ap-

2 3 4

proved, a plan described in subsection (c) (regardless of whether such plan was prepared using amounts

5

awarded under paragraph (1)); and 6

‘‘(2) submits an application at such time, in such

7 8

manner, and containing such information as the

9

Secretary may specify.

10 11

‘‘(d) U

SE OF FUNDS .—Amounts

received under a

grant under subsection (a)(3) shall be used to conduct ac-

12 13 14 15

tivities 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 develHR 1 PP

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2

1 2

opment and dissemination of solutions to barriers to

3

the exchange of electronic health information;

4

‘‘(5) promoting effective strategies to adopt and

5

utilize health information technology in medically un6 7

derserved communities; ‘‘(6) assisting patients in utilizing health infor-

8 9

mation technology;

10 11

‘‘(7) encouraging clinicians to work with Health Information Technology Regional Extension Centers

12 13 14

as described in section 3012, to the extent they are available and valuable; ‘‘(8) supporting public health agencies’ author-

15

ized use of and access to electronic health information; ‘‘(9) promoting the use of electronic health records for quality improvement including through quality measures reporting; ‘‘(10) establishing and supporting health record banking models to further consumer-based consent models that promote lifetime access to qualified health records, if such activities are included in the plan described in subsection (e), and may contain smart card functionality; and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(11) such other activities as the Secretary may

2 3 4

specify. ‘‘(e) PLAN .—

5

‘‘(1) IN GENERAL.—A plan described in this sub-

6 7

section is a plan that describes the activities to be

8

carried out by a State or by the qualified State-des-

9

ignated entity within such State to facilitate and ex-

10 11

pand the electronic movement and use of health information among organizations according to nationally

12

recognized standards and implementation specifica13 14

tions. ‘‘(2) R

15

EQUIRED 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

‘‘(f) Q

UALIFIED

S TATE-D ESIGNATED E NTITY.—For

purposes of this section, to be a qualified State-designated entity, with respect to a State, an entity shall—

5

‘‘(1) be designated by the State as eligible to re6 7

ceive awards under this section; ‘‘(2) be a not-for-profit entity with broad stake-

8 9

holder representation on its governing board;

10 11

‘‘(3) demonstrate that one of its principal goals is to use information technology to improve health

12 13 14 15

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) R EQUIRED C ONSULTATION .—In carrying out activities described in subsections (a)(2) and (a)(3), a State or qualified State-designated entity shall consult with and consider the recommendations of— ‘‘(1) health care providers (including providers HR 1 PP

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2

1 2

that provide services to low income and underserved

3

populations);

4

‘‘(2) health plans;

5

‘‘(3) patient or consumer organizations that rep-

6 7

resent the population to be served;

8

‘‘(4) health information technology

9

vendors; ‘‘(5) health care purchasers and

10

employers; ‘‘(6) public health agencies;

11

‘‘(7) health professions schools, universities and

12

colleges; 13 14

‘‘(8) clinical researchers; ‘‘(9) other users of health information technology

15

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) C

ONTINUOUS 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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

the Secretary, will lead towards the greatest improvement

3

in quality of care, decrease in costs, and the most effective

4

authorized and secure electronic exchange of health

5

information. 6 7

‘‘(i) R EQUIRED M ATCH .— ‘‘(1) IN GENERAL.—For a fiscal year (beginning

8 9

with fiscal year 2011), the Secretary may not make a

10

grant under subsection (a) to a State unless the State

11

agrees to make available non-Federal contributions

12

(which may include in-kind contributions) toward the 13 14 15

costs of a grant awarded under subsection (a)(3) in an amount equal to— ‘‘(A) for fiscal year 2011, not less than $1 for each $10 of Federal funds provided under the grant; ‘‘(B) for fiscal year 2012, not less than $1 for each $7 of Federal funds provided under the grant; and ‘‘(C) for fiscal year 2013 and each subsequent fiscal year, not less than $1 for each $3 of Federal funds provided under the grant. ‘‘(2) A UTHORITY TO REQUIRE STATE MATCH FOR FISCAL YEARS BEFORE FISCAL YEAR 2011 .—For

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any fiscal

2

1 2

year during the grant program under this section

3

before fiscal year 2011, the Secretary may determine

4

the extent to which there shall be required a

5

non-Federal contribution from a State 6 7

receiving a grant under this section.

8

‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN

9

TRIBES FOR THE DEVELOPMENT OF LOAN

10

PROGRAMS TO FACILITATE THE WIDESPREAD

11 12

ADOPTION OF CERTIFIED EHR TECHNOLOGY.

‘‘(a) I N G ENERAL.—The National Coordinator may award

13 14 15

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) E

LIGIBLE

E NTITY D EFINED .—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 stra-

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2

1 2

tegic plan in accordance with subsection (d) and pro-

3

vides to the National Coordinator assurances that the

4

entity will update such plan annually in accordance

5

with such subsection; 6

‘‘(3) provides assurances to the National Coordi-

7 8

nator that the entity will establish a Loan Fund in

9

accordance with subsection (c);

10 11

‘‘(4) provides assurances to the National Coordinator that the entity will not provide a loan from the

12 13 14

Loan Fund to a health care provider unless the provider agrees to— ‘‘(A) submit reports on quality measures

15

adopted by the Federal Government (by not later than 90 days after the date on which such measures are adopted), to— ‘‘(i) the Director of the Centers for Medicare & Medicaid Services (or his or her designee), in the case of an entity participating in the Medicare program under title XVIII of the Social Security Act or the Medicaid program under title XIX of such Act; or ‘‘(ii) the Secretary in the case of other HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

entities;

3

‘‘(B) demonstrate to the satisfaction of the

4

Secretary (through criteria established by the

5

Secretary) that any certified EHR technology 6

purchased, improved, or otherwise financially

7 8

supported under a loan under this section is used

9

to exchange health information in a manner that,

10

in accordance with law and standards (as

11

adopted under section 3005) applicable to the

12

exchange of information, improves the quality of

13

health care, such as promoting care

14

coordination;

15

‘‘(C) comply with such other requirements as the entity or the Secretary may require; ‘‘(D) include a plan on how healthcare providers involved intend to maintain and support the certified EHR technology over time; and ‘‘(E) include a plan on how the healthcare providers involved intend to maintain and support the certified EHR technology that would be purchased with such loan, including the type of resources expected to be involved and any such other information as the State or Indian tribe, respectively, may require; and ‘‘(5) agrees to provide HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

matching funds in accordance with subsection (i). ‘‘(c) E STABLISHMENT OF FUND .—For purposes of subsection (b)(3), an eligible entity shall establish a certified

5

EHR technology loan fund (referred to in this subsection 6 7

as a ‘Loan Fund’) and comply with the other requirements

8

contained in this section. A grant to an eligible entity under

9

this section shall be deposited in the Loan Fund established

10

by the eligible entity. No funds authorized by other provi-

11

sions of this title to be used for other purposes specified in

12 13 14

this title shall be deposited in any Loan Fund. ‘‘(d) S TRATEGIC PLAN .— ‘‘(1) I

15

N 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) C

ONTENTS .—A

strategic plan under para-

graph (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

Loan Fund during the year.

2 3

‘‘(C) A description of the financial status of

4

the Loan Fund as of the date of submission of the

5

plan. 6

‘‘(D) The short-term and long-term goals of

7

the Loan Fund.

8 9 10 11

‘‘(e) U

SE 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

12 13 14 15

loan guarantees, making reimbursements described in subsection (g)(4)(A), or as a source of reserve and security for leveraged loans, the proceeds of which are deposited in the Loan Fund established under subsection (a). Loans under this section may be used by a health care provider to— ‘‘(1) facilitate the purchase of certified EHR technology; ‘‘(2) enhance the utilization of certified EHR technology (which may include costs associated with upgrading health information technology so that it meets criteria necessary to be a certified EHR technology); ‘‘(3) train personnel in the use of such HR 1 PP

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2

1 2

technology; or

3 4

‘‘(4) improve the secure electronic exchange of health information.

5

‘‘(f) T YPES OF A SSISTANCE.—Except as otherwise lim6 7

ited by applicable State law, amounts deposited into a

8

Loan Fund under this subsection may only be used for the

9

following:

10 11

‘‘(1) To award loans that comply with the following:

12

‘‘(A) The interest rate for each loan

13

shall not exceed the market interest rate.

14

‘‘(B) The principal and interest payments on

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

market access or reduce the interest rate applicable to

3

the obligation involved.

4

‘‘(3) As a source of revenue or security for the

5

payment of principal and interest on revenue or gen6 7

eral obligation bonds issued by the eligible entity if

8

the proceeds of the sale of the bonds will be deposited

9

into the Loan Fund.

10 11

‘‘(4) To earn interest on the amounts deposited into the Loan Fund.

12

‘‘(5) To make reimbursements described in sub-

13 14 15

section (g)(4)(A). ‘‘(g) A DMINISTRATION OF L OAN FUNDS .— ‘‘(1) C

OMBINED FINANCIAL ADMINISTRATION .—

An

eligible entity may (as a convenience and to avoid unnecessary administrative costs) combine, in accord ance 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) C

OST OF ADMINISTERING FUND .—Each

eli-

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1

2

2

of the funds provided to the entity under a grant

3

under this subsection to pay the reasonable costs of

4

the administration of the programs under this section,

5

including the recovery of reasonable costs expended 6 7 8

to establish a Loan Fund which are incurred after the date of the enactment of this title.

9 10 11

‘‘(3) G

UIDANCE AND REGULATIONS .—The

National

Coordinator shall publish guidance and promulgate regulations as may be necessary to carry out the

12 13

provisions of this section, including— ‘‘(A) provisions to ensure that each eligible

14

entity commits and expends funds allotted to the

15

entity under this subsection as efficiently as possible in accordance with this title and applicable State laws; and ‘‘(B) guidance to prevent waste, fraud, and abuse. ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS .— ‘‘(A) I N GENERAL.—A Loan Fund established under this subsection may accept contributions from private sector entities, except that such entities may not specify the recipient or recipients of any loan issued under this subsection. An HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

eligible entity may agree to reimburse a private

3

sector entity for any contribution made under

4

this subparagraph, except that the amount of

5

such reimbursement may not be greater than the 6

principal amount of the contribution made.

7

‘‘(B) A

8

VAILABILITY OF INFORMATION .—An

9

eligible entity shall make publicly available the

10

identity of, and amount contributed by, any pri-

11

vate sector entity under subparagraph (A) and

12

may issue letters of commendation or make other

13

awards (that have no financial value) to any such

14

entity.

15

‘‘(h) M ATCHING R EQUIREMENTS .— ‘‘(1) I N 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) D

ETERMINATION OF AMOUNT OF NON -FEDERAL

CONTRIBUTION .—In

determining the amount of

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2

1 2

non-Federal contributions that an eligible entity has

3

provided pursuant to subparagraph (A), the National

4

Coordinator may not include any amounts provided

5

to the entity by the Federal Government. 6 7 8 9

‘‘(i) E FFECTIVE D ATE .—The Secretary may not make an award under this section prior to January 1, 2010. ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN

10

FORMATION TECHNOLOGY INTO CLINICAL

11 12

EDUCATION.

‘‘(a) IN G ENERAL.—The Secretary may award grants

13

under this section to carry out demonstration projects to 14 15

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) E

LIGIBILITY.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

errors, increase access to prevention, reduce chronic

3

diseases, and enhance health care quality;

4

‘‘(3) be—

5

‘‘(A) a school of medicine, osteopathic medi-

6

cine, dentistry, or pharmacy, a graduate program

7 8

in behavioral or mental health, or any other

9

graduate health professions school;

10

‘‘(B) a graduate school of nursing or physi-

11

cian assistant studies;

12

‘‘(C) a consortium of two or more schools 13

described in subparagraph (A) or (B); or

14

‘‘(D) an institution with a graduate medical

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subsection (d).

3

‘‘(c) U SE OF FUNDS .—

4 5

‘‘(1) I N GENERAL.—With respect to a grant under subsection (a), an eligible entity shall—

6

‘‘(A) use grant funds in collaboration with 2

7

or more disciplines; and

8 9

‘‘(B) use grant funds to integrate certified

10

EHR technology into community-based clinical

11

education.

12

‘‘(2) L

IMITATION .—An

eligible entity shall not

13 14 15

use amounts received under a grant under subsection (a) to purchase hardware, software, or services. ‘‘(d) F INANCIAL S UPPORT .—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) E VALUATION .—The Secretary shall take such action as may be necessary to evaluate the projects funded under this section and publish, make available, and disHR 1 PP

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1 2

seminate the results of such evaluations on as wide a basis

3

as is practicable.

4

‘‘(f) R

EPORTS .—Not

later than 1 year after the date of

5

enactment of this title, and annually thereafter, the Sec6 7

retary shall submit to the Committee on Health, Education,

8

Labor, and Pensions and the Committee on Finance of the

9

Senate, and the Committee on Energy and Commerce of

10

the House of Representatives a report that—

11

‘‘(1) describes the specific projects

12 13

established under this section; and ‘‘(2) contains recommendations for Congress

14 15

based on the evaluation conducted under subsection (e). ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH CARE.

‘‘(a) I N G ENERAL.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

health information technologies (in the United States health

3

care infrastructure).

4

‘‘(b) A CTIVITIES .—Activities for which assistance may

5

be provided under subsection (a) may include the 6 7

following: ‘‘(1) Developing and revising curricula in med-

8 9

ical health informatics and related disciplines.

10

‘‘(2) Recruiting and retaining students to

11

the program involved.

12

‘‘(3) Acquiring equipment necessary for student

13 14 15

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) P RIORITY.—In providing assistance under subsection (a), the Secretary shall give preference to the following: ‘‘(1) Existing education and training programs. ‘‘(2) Programs designed to be completed in less than six months. ‘‘(d) F INANCIAL S UPPORT .—The Secretary may not provide more than 50 percent of the costs of any activity HR 1 PP

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for which assistance is provided under subsection (a),

3

except in an instance of national economic conditions

4

which would render the cost-share requirement under this

5

subsection detrimental to the program and upon 6 7 8 9 10 11 12

notification to Congress as to the justification to waive the cost-share requirement. ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

‘‘(a) R

EPORTS .—The

Secretary may require that an

entity receiving assistance under this title shall submit to the Secretary, not later than the date that is 1 year after

13 14 15

the date of receipt of such assistance, a report that includes— ‘‘(1) an analysis of the effectiveness of such activities for which the entity receives such assistance, as compared to the goals for such activities; and ‘‘(2) an analysis of the impact of the project on healthcare quality and safety. ‘‘(b) R

EQUIREMENT

T O IMPROVE Q UALITY OF C ARE AND

D ECREASE IN C OSTS .—The National Coordinator shall annually evaluate the activities conducted under this title and shall, in awarding grants, implement the lessons learned from such evaluation in a manner so that awards made subsequent to each such evaluation are made in a HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

manner that, in the determination of the National Coordi-

3

nator, will result in the greatest improvement in the quality

4 5

and efficiency of health care. ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

6 7 8 9 10 11

‘‘For the purposes of carrying out this subtitle, there is authorized to be appropriated such sums as may be necessary for each of the fiscal years 2009 through 2013. Amounts so appropriated shall remain available until expended.’’.

12

Subtitle D—Privacy

13 14 15

SEC. 13400. DEFINITIONS.

In this subtitle, except as specified otherwise: (1) B REACH .—The term ‘‘breach’’ means the unauthorized acquisition, access, use, or disclosure of protected health information which compromises the security, privacy, or integrity of protected health information maintained by or on behalf of a person. Such term does not include any unintentional acquisition, access, use, or disclosure of such information by an employee or agent of the covered entity or business associate involved if such acquisition, access, use, or disclosure, respectively, was made in good

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2

1 2

faith and within the course and scope of the

3

employment or other contractual relationship of such

4

employee or agent, respectively, with the covered

5

entity or business associate and if such information is 6 7 8

not further acquired, accessed, used, or disclosed by such employee or agent.

9 10 11

(2) B

USINESS ASSOCIATE .—The

term ‘‘business

associate’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations.

12

(3) C

13 14 15

OVERED ENTITY.—The

term ‘‘covered entity’’

has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations. (4) D

ISCLOSE .—The

terms ‘‘disclose’’ and ‘‘dis-

closure’’ have the meaning given the term ‘‘disclosure’’ in section 160.103 of title 45, Code of Federal Regulations. (5) E

LECTRONIC 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) H

EALTH CARE OPERATIONS .—The

term ‘‘health

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2

1 2

section 164.501 of title 45, Code of Federal

3

Regulations.

4

(7) H EALTH CARE PROVIDER .—The term ‘‘health

5

care provider’’ has the meaning given such term in 6 7 8

section 160.103 of title 45, Code of Federal Regulations.

9 10 11

(8) H EALTH PLAN .—The term ‘‘health plan’’ has the meaning given such term in section 1171(5) of the Social Security Act.

12

(9) N

13 14 15

ATIONAL COORDINATOR .—The

term ‘‘Na-

tional 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) P AYMENT .—The term ‘‘payment’’ has the meaning given such term in section 164.501 of title 45, Code of Federal Regulations. (11) P ERSONAL HEALTH RECORD .—The term ‘‘personal health record’’ means an electronic record of individually identifiable health information on an individual that can be drawn from multiple sources and that is managed, shared, and controlled by or for the individual. HR 1 PP

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2

1

(12) P ROTECTED HEALTH INFORMATION .—The term

2 3 4

‘‘protected health information’’ has the meaning given such term in section 160.103 of title 45, Code of

5

Federal Regulations. 6

(13) S

7 8

11

term ‘‘Secretary’’ means

the Secretary of Health and Human Services.

9 10

ECRETARY.—The

(14) S

ECURITY.—The

term ‘‘security’’ has the

meaning given such term in section 164.304 of title 45, Code of Federal Regulations.

12

(15) S

13 14 15

TATE .—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) T

REATMENT .—The

term ‘‘treatment’’ has

the meaning given such term in section 164.501 of title 45, Code of Federal Regulations. (17) U SE .—The term ‘‘use’’ has the meaning given such term in section 160.103 of title 45, Code of Federal Regulations. (18) V

ENDOR

RECORDS .—The

OF

PERSONAL

HEALTH

term ‘‘vendor of personal health

records’’ means an entity, other than a covered entity (as defined in paragraph (3)), that offers or maintains HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

a personal health record.

3

PART I—IMPROVED PRIVACY PROVISIONS AND

4

SECURITY PROVISIONS

5 SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND

6 PENALTIES TO BUSINESS ASSOCIATES OF

7 COVERED ENTITIES; ANNUAL GUIDANCE ON

8

SECURITY PROVISIONS.

9 10 11 12 13

(a) A PPLICATION OF S ECURITY 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

14 15

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) A

PPLICATION OF C IVIL AND

C RIMINAL 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

apply to a covered entity that violates such security

3

provision.

4

(c) A NNUAL G UIDANCE.—For the first year beginning

5

after the date of the enactment of this Act and annually 6 7

thereafter, the Secretary of Health and Human Services

8

shall, in consultation with industry stakeholders, annually

9

issue guidance on the most effective and appropriate tech-

10 11

nical safeguards for use in carrying out the sections referred to in subsection (a) and the security standards in

12 13 14 15

subpart C of part 164 of title 45, Code of Federal Regulations, as such provisions are in effect as of the date before the enactment of this Act. SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.

(a) I N G ENERAL.—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

(b) N OTIFICATION OF C OVERED E NTITY BY B USINESS

3

A SSOCIATE .—A business associate of a covered entity that

4

accesses, maintains, retains, modifies, records, stores, de-

5

stroys, or otherwise holds, uses, or discloses unsecured 6 7

protected health information shall, following the discovery

8

of a breach of such information, notify the covered entity

9

of such breach. Such notice shall include the identification

10 11

of each individual whose unsecured protected health information has been, or is reasonably believed by the

12 13 14 15

business associate to have been, accessed, acquired, or disclosed during such breach. (c) B REACHES T REATED AS D ISCOVERED .—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) T IMELINESS OF N OTIFICATION .— (1) I N GENERAL.—Subject to subsection (g), all notifications required under this section shall be made

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1 2

without unreasonable delay and in no case later than

3

60 calendar days after the discovery of a breach by

4

the covered entity involved (or business associate in-

5

volved in the case of a notification required under 6 7

subsection (b)). (2) B

8

URDEN OF PROOF.—The

covered entity in-

9

volved (or business associate involved in the case of a

10

notification required under subsection (b)), shall have

11

the burden of demonstrating that all notifications

12 13 14 15

were made as required under this part, including evidence demonstrating the necessity of any delay. (e) M ETHODS OF N OTICE.— (1) I NDIVIDUAL 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 notifi cation may be provided in one or more mailings HR 1 PP

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2

1

as information is available.

2 3

(B) In the case in which there is insufficient,

4

or out-of-date contact information (including a

5

phone number, email address, or any other form 6

of appropriate communication) that precludes

7 8

direct written (or, if specified by the individual

9

under subparagraph (A), electronic) notification

10

to the individual, a substitute form of notice shall

11

be provided, including, in the case that there are

12

10 or more individuals for which there is

13

insufficient or out-of-date contact information, a

14

conspicuous posting for a period determined by

15

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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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involved to require urgency because of possible

3

imminent misuse of unsecured protected health

4

information, the covered entity, in addition to

5

notice provided under subparagraph (A), may 6

provide information to individuals by telephone

7 8

or other means, as appropriate.

9

(2) M

10 11

EDIA NOTICE .—Notice

shall be provided to

prominent media outlets serving a State or jurisdiction, following the discovery of a breach described in

12 13 14 15

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) N OTICE 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 inHR 1 PP

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volved.

3 4

(4) P OSTING ON HHS PUBLIC WEBSITE.—The Secretary shall make available to the public on the

5

Internet website of the Department of Health and 6 7

Human Services a list that identifies each covered en-

8

tity involved in a breach described in subsection (a)

9

in which the unsecured protected health information

10 11

of more than 500 individuals is acquired or disclosed. (f) C

ONTENT OF N OTIFICATION .—Regardless

of the

12 13 14 15

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. HR 1 PP

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(4) A brief description of what the covered entity

2 3 4

involved is doing to investigate the breach, to mitigate losses, and to protect against any further breaches.

5

(5) Contact procedures for individuals to ask 6 7

questions or learn additional information, which shall

8 9 10 11

include a toll-free telephone number, an e-mail address, Web site, or postal address. (g) D

ELAY OF N OTIFICATION

A UTHORIZED FOR L AW

12 13 14 15

E NFORCEMENT 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) U

NSECURED

PROTECTED H EALTH INFORMATION .—

(1) D EFINITION .— (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

through the use of a technology or methodology

3

specified by the Secretary in the guidance issued

4

under paragraph (2).

5

(B) E

XCEPTION IN CASE TIMELY GUIDANCE NOT

6 ISSUED .—In

7

the case that the Secretary does not

8

issue guidance under paragraph (2) by the date

9

specified in such paragraph, for purposes of this

10

section, the term ‘‘unsecured protected health

11

information’’ shall mean protected health infor-

12

mation that is not secured by a technology

13

standard that renders protected health informa-

14

tion unusable, unreadable, or indecipherable to

15

unauthorized individuals and is developed or endorsed by a standards developing organization that is accredited by the American National Standards Institute. (2) G

UIDANCE .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

indecipherable to unauthorized individuals.

3

(i) R EPORT TO C ONGRESS ON B REACHES .—

4 5

(1) I N GENERAL.—Not later than 12 months after the date of the enactment of this Act and annually

6 7

thereafter, the Secretary shall prepare and submit to

8

the Committee on Finance and the Committee on

9

Health, Education, Labor, and Pensions of the Senate

10 11

and the Committee on Ways and Means and the Committee on Energy and Commerce of the House of

12

Representatives a report containing the information 13 14 15

described in paragraph (2) regarding breaches for which notice was provided to the Secretary under subsection (e)(3). (2) I NFORMATION .—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) R

EGULATIONS ;

E

FFECTIVE

D ATE .—To carry out this

section, the Secretary of Health and Human Services shall promulgate interim final regulations by not later than the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

date that is 180 days after the date of the enactment of this

3

title. The provisions of this section shall apply to breaches

4

that are discovered on or after the date that is 30 days

5

after the date of publication of such interim final regu6 7 8

lations. SEC. 13403. EDUCATION ON HEALTH INFORMATION PRI VACY.

9 10 11 12

(a) R EGIONAL O FFICE PRIVACY A DVISORS .—Not later than 6 months after the date of the enactment of this Act, the Secretary shall designate an individual in each regional

13 14 15

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) E DUCATION INITIATIVE ON U SES OF H EALTH IN FORMATION .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

health information, the effects of such uses, and the rights

3

of individuals with respect to such uses. Such programs

4

shall be conducted in a variety of languages and present

5

information in a clear and understandable manner. 6 7

SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO BUSINESS ASSOCIATES OF

8

COVERED ENTITIES.

9 10 11 12

(a) A PPLICATION OF C ONTRACT R EQUIREMENTS .—In the case of a business associate of a covered entity that obtains or creates protected health information pursuant to a

13

written contract (or other written arrangement) described 14 15

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) A PPLICATION OF K NOWLEDGE E LEMENTS A SSOCIATED HR 1 PP

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2

2

W ITH C ONTRACTS .—Section 164.504(e)(1)(ii) of title 45,

3

Code of Federal Regulations, shall apply to a business

4

associate described in subsection (a), with respect to

5

compliance with such subsection, in the same manner that 6 7

such section applies to a covered entity, with respect to

8

compliance with the standards in sections 164.502(e) and

9

164.504(e) of such title, except that in applying such

10 11

section 164.504(e)(1)(ii) each reference to the business associate, with respect to a contract, shall be treated as a

12 13 14 15

reference to the covered entity involved in such contract. (c) A

PPLICATION OF C IVIL AND

C RIMINAL 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; ACCOUNT ING OF CERTAIN PROTECTED HEALTH INFOR MATION DISCLOSURES; ACCESS TO CERTAIN INFORMATION IN ELECTRONIC FORMAT.

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1 2 3 4

(a) R EQUESTED R ESTRICTIONS ON C ERTAIN D ISCLOSURES OF H EALTH INFORMATION .—In

the case that an individual

requests under paragraph (a)(1)(i)(A) of section 164.522

5

of title 45, Code of Federal Regulations, that a covered 6 7

entity restrict the disclosure of the protected health in-

8

formation of the individual, notwithstanding paragraph

9

(a)(1)(ii) of such section, the covered entity must comply

10

with the requested restriction if—

11

(1) except as otherwise required by law, the dis-

12 13 14 15

closure 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) D ISCLOSURES R EQUIRED T O B E L IMITED TO THE L IMITED D ATA S ET OR THE M INIMUM N ECESSARY.— (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 HR 1 PP

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2

1 2

use, disclosure, or request of protected health in-

3

formation described in such section, only if the

4

covered entity limits such protected health infor-

5

mation, to the extent practicable, to the limited 6

data set (as defined in section 164.514(e)(2) of

7 8

such title) or, if needed by such entity, to the

9

minimum necessary to accomplish the intended

10

purpose of such use, disclosure, or request, re-

11

spectively.

12

(B) G

13

UIDANCE .—Not

later than 18 months

after the date of the enactment of this section, the

14

Secretary shall issue guidance on what con-

15

stitutes ‘‘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) S

UNSET .—Subparagraph

(A) shall not

apply on and after the effective date on which the Secretary issues the guidance under subparagraph (B). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) D ETERMINATION OF MINIMUM NECESSARY.— For

2 3 4

purposes of paragraph (1), in the case of the disclosure of protected health information, the covered

5

entity or business associate disclosing such informa6 7

tion shall determine what constitutes the minimum

8

necessary to accomplish the intended purpose of such

9

disclosure.

10 11

(3) A

PPLICATION OF EXCEPTIONS .—The

exceptions

described in section 164.502(b)(2) of title 45, Code of

12 13 14 15

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) R

ULE 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) A CCOUNTING FORMATION

OF

C ERTAIN PROTECTED H EALTH IN -

D ISCLOSURES R EQUIRED

IF

C OVERED E NTITY U SES

E LECTRONIC H EALTH R ECORD .— ‘‘(1) IN GENERAL.—In applying section 164.528 of title 45, Code of Federal Regulations, in the case that HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

a covered entity uses or maintains an electronic

3

health record with respect to protected health

4

information—

5

‘‘(A) the exception under paragraph 6

(a)(1)(i) of such section shall not apply to disclo-

7 8

sures through an electronic health record made

9

by such entity of such information; and

10

‘‘(B) an individual shall have a right to re-

11

ceive an accounting of disclosures described in

12

such paragraph of such information made by

13

such covered entity during only the three years

14

prior to the date on which the accounting is re-

15

quested. ‘‘(2) R

EGULATIONS .—The

Secretary shall pro-

mulgate regulations on what disclosures must be included in an accounting referred to in paragraph (1)(A) and what information must be collected about each such disclosure not later than 18 months after the date on which the Secretary adopts standards on accounting for disclosure described in the section 3002(b)(2)(B)(iv) of the Public Health Service Act, as added by section 13101. Such regulations shall only require such information to be collected through an HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

electronic health record in a manner that takes into

3

account the interests of individuals in learning when

4

their protected health information was disclosed and

5

to whom it was disclosed, and the usefulness of such 6 7

information to the individual, and takes into account

8

the administrative and cost burden of accounting for

9

such disclosures.

10 11

‘‘(3) C ONSTRUCTION .—Nothing in this subsection shall be construed as—

12

‘‘(A) requiring a covered entity to account

13

for disclosures of protected health information

14

that are not made by such covered entity; or

15

‘‘(B) requiring a business associate of a covered entity to account for disclosures of protected health information that are not made by such business associate. ‘‘(4) R

EASONABLE FEE .—A

covered entity may

impose a reasonable fee on an individual for an accounting performed under paragraph (1)(B). Any such fee shall not be greater than the entity’s labor costs in responding to the request. ‘‘(5) E FFECTIVE DATE.— ‘‘(A) C URRENT USERS OF ELECTRONIC

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

RECORDS .—In

3

as it acquired an electronic health record as of

4

the case of a covered entity insofar

January 1, 2009, paragraph (1) shall apply to

5

disclosures, with respect to protected health in6

formation, made by the covered entity from such

7

a record on and after January 1, 2014.

8 9

‘‘(B) O THERS .—In the case of a covered en-

10

tity insofar as it acquires an electronic health

11

record after January 1, 2009, paragraph (1)

12

shall apply to disclosures, with respect to pro-

13

tected health information, made by the covered

14

entity from such record on and after the later of

15

the following: ‘‘(i) January 1, 2011; or ‘‘(ii) the date that it acquires an electronic health record. ‘‘(C) L ATER DATE.—The Secretary may set an effective date that is later that the date specified under subparagraph (A) or (B) if the Secretary determines that such later date it necessary, but in no case may the date specified under— ‘‘(i) subparagraph (A) be later than HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

2018; or

2 3

‘‘(ii) subparagraph (B) be later than

4

2014.

5

(d) R

EVIEW OF H EALTH

C ARE O PERATIONS .—Not later

6 7

than 18 months after the date of the enactment of this title,

8

the Secretary shall review and evaluate the definition of

9

health care operations under section 164.501 of title 45,

10 11

Code of Federal Regulations, and to the extent appropriate, eliminate by regulation activities that can

12 13 14 15

reasonably and efficiently be conducted through the use of information that is de-identified (in accordance with the requirements of section 164.514(b) of such title) or that should require a valid authorization for use or disclosure. In promulgating such regulations, the Secretary shall not require that data be de- identified or require valid authorization for use or disclosure for activities within a covered entity described in paragraph (1) of the definition of health care operations under such section 164.501. In promulgating such regulations, the Secretary may choose to narrow or clarify activities that the Secretary chooses to retain in the definition of health care operations and the Secretary shall take into account the report under section 13424(d). In such regulations the Secretary shall specify HR 1 PP

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2

1 2

the date on which such regulations shall apply to

3

disclosures made by a covered entity, but in no case would

4

such date be sooner than the date that is 24 months after

5

the date of the enactment of this section. Nothing in this 6 7 8

subsection may be construed to supersede any provision under subsection (e) or section 13406(a).

9 10 11

(e) P ROHIBITION ON S ALE OF E LECTRONIC H EALTH R ECORDS OR

PROTECTED H EALTH I NFORMATION O BTAINED FROM

E LECTRONIC H EALTH R ECORDS .—

12

(1) I N GENERAL.—Except as provided in para-

13 14 15

graph (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) E

XCEPTIONS .—Paragraph

apply in the following cases: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

(1) shall not

2

1

(A) The purpose of the exchange is for re-

2 3

search or public health activities (as described in

4

sections 164.501, 164.512(i), and 164.512(b) of

5

title 45, Code of Federal Regulations). 6

(B) The purpose of the exchange is for the

7 8

treatment of the individual, subject to any regu

9

lation that the Secretary may promulgate to pre-

10

vent protected health information from inappro-

11

priate access, use, or disclosure.

12

(C) The purpose of the exchange is the

13

health care operation specifically described in

14

subparagraph (iv) of paragraph (6) of the defini-

15

tion of healthcare operations in section 164.501 of title 45, Code of Federal Regulations. (D) The purpose of the exchange is for remuneration that is provided by a covered entity to a business associate for activities involving the exchange of protected health information that the business associate undertakes on behalf of and at the specific request of the covered entity pursuant to a business associate agreement. (E) The purpose of the exchange is to provide an individual with a copy of the individual’s HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

protected health information pursuant to section

3

164.524 of title 45, Code of Federal Regulations.

4

(F) The purpose of the exchange is otherwise

5

determined by the Secretary in regulations to be 6

similarly necessary and appropriate as the ex-

7 8

ceptions provided in subparagraphs (A) through

9

(E).

10 11

(3) R

EGULATIONS .—Not

later than 18 months

after the date of enactment of this title, the Secretary

12 13 14 15

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 HR 1 PP

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2

1 2

paragraph reflects the costs of the preparation

3

and transmittal of the data for such purpose, if

4

the Secretary finds that such further restriction

5

will not impede such research or public health 6

activities.

7

(4) E

8 9 10 11

FFECTIVE 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.

12 13 14 15

(f) A CCESS TO C ERTAIN INFORMATION IN E LECTRONIC FORMAT .—In applying section 164.524 of title 45, Code of Federal Regulations, in the case that a covered entity uses or maintains an electronic health record with respect to protected health information of an individual— (1) the individual shall have a right to obtain from such covered entity a copy of such information in an electronic format; and (2) notwithstanding paragraph (c)(4) of such section, any fee that the covered entity may impose for providing such individual with a copy of such information (or a summary or explanation of such information) if such copy (or summary or explanation) is in an electronic form shall not be greater than the HR 1 PP

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2

1 2

entity’s labor costs in responding to the request for the

3

copy (or summary or explanation).

4

SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART

5

OF HEALTH CARE OPERATIONS.

6

(a) M ARKETING .— 7

(1) I N GENERAL.—A communication by a covered

8 9

entity or business associate that is about a product or

10

service and that encourages recipients of the

11

communication to purchase or use the product or

12

service shall not be considered a health care

13

operation for purposes of subpart E of part 164 of 14 15

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) P AYMENT 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 HR 1 PP

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2

1 2

or has received direct or indirect payment in

3

exchange for making such communication, except

4

where—

5

(A) such communication describes only a 6

health care item or service that has previously

7 8

been prescribed for or administered to the recipi-

9

ent of the communication, or a family member of

10

such recipient;

11

(B) each of the following conditions apply—

12

(i) the communication is made by the 13

covered entity; and

14

(ii) the covered entity making such

15

communication obtains from the recipient of the communication, in accordance with section 164.508 of title 45, Code of Federal Regulations, a valid authorization (as described in paragraph (b) of such section) with respect to such communication; or (C) each of the following conditions apply— (i) the communication is made on behalf of the covered entity; (ii) the communication is consistent with the written contract (or other written HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

arrangement described in section

3

164.502(e)(2) of such title) between such

4

business associate and covered entity; and

5

(iii) the business associate making such 6

communication, or the covered entity on be-

7 8

half of which the communication is made,

9

obtains from the recipient of the commu-

10

nication, in accordance with section

11

164.508 of title 45, Code of Federal Regula-

12

tions, a valid authorization (as described in

13

paragraph (b) of such section) with respect

14

to such communication.

15

(c) E

FFECTIVE

D ATE .—This section shall apply to

contracting occurring on or after the effective date specified under section 13423. SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIRE MENT FOR VENDORS OF PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED ENTITIES.

(a) IN G ENERAL.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

record maintained or offered by such vendor, and each

3

entity described in clause (ii) or (iii) of section

4

13424(b)(1)(A), following the discovery of a breach of

5

security of such information that is obtained through a 6 7

product or service provided by such entity, shall— (1) notify each individual who is a citizen or

8 9

resident of the United States whose unsecured PHR

10

identifiable health information was acquired by an

11

unauthorized person as a result of such a breach of

12 13

security; and (2) notify the Federal Trade Commission.

14 15

(b) N VIDERS .—A

OTIFICATION BY T HIRD

PARTY S ERVICE PRO -

third party service provider that provides serv-

ices to a vendor of personal health records or to an entity described in clause (ii) or (iii) of section 13424(b)(1)(A) in connection with the offering or maintenance of a personal health record or a related product or service and that accesses, maintains, retains, modifies, records, stores, de stroys, 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

include the identification of each individual whose

3

unsecured PHR identifiable health information has been,

4

or is reasonably believed to have been, accessed,

5

acquired, or disclosed during such breach. 6 7

(c) A PPLICATION OF R EQUIREMENTS FOR T IMELINESS ,

8

M ETHOD ,

9

(c), (d), (e), and (f) of section 13402 shall apply to a notifi-

10

cation required under subsection (a) and a vendor of per-

11

AND

C ONTENT OF N OTIFICATIONS .—Subsections

sonal health records, an entity described in subsection (a)

12 13 14 15

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) N OTIFICATION OF THE S ECRETARY.—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) E

NFORCEMENT .—A

violation of subsection (a) or

(b) shall be treated as an unfair and deceptive act or prac tice 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 pracHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

tices. (f) D EFINITIONS .—For purposes of this section:

4 5

(1) B REACH OF SECURITY.—The term ‘‘breach of security’’ means, with respect to unsecured PHR

6 7

identifiable health information of an individual in a

8

personal health record, acquisition of such informa-

9

tion without the authorization of the individual.

10 11

(2) PHR IDENTIFIABLE HEALTH INFORMATION .— The term ‘‘PHR identifiable health information’’ means

12

individually identifiable health information, as 13 14 15

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) U NSECURED PHR IDENTIFIABLE HEALTH IN FORMATION .—

(A) I N GENERAL.—Subject to subparagraph (B), the term ‘‘unsecured PHR identifiable health HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

information’’ means PHR identifiable health

3

information that is not protected through the use

4

of a technology or methodology specified by the

5

Secretary in the guidance issued under section 6

13402(h)(2).

7

(B) E

8 9

XCEPTION IN CASE TIMELY GUIDANCE NOT

ISSUED .—In

10

the case that the Secretary does not

issue guidance under section 13402(h)(2) by the

11

date specified in such section, for purposes of

12

this section, the term ‘‘unsecured PHR identifi-

13

able health information’’ shall mean PHR iden-

14

tifiable health information that is not secured by

15

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) R EGULATIONS ; E FFECTIVE D ATE ; S UNSET .— (1) R

EGULATIONS ; EFFECTIVE DATE .—To

carry

out this section, the Federal Trade Commission shall, in accordance with section 553 of title 5, United States Code, promulgate interim final regulations by HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

not later than the date that is 180 days after the date

3

of the enactment of this section. The provisions of this

4

section shall apply to breaches of security that are

5

discovered on or after the date that is 30 days after 6 7 8

the date of publication of such interim final regulations.

9 10 11

(2) S UNSET .—The provisions of this section shall not apply to breaches of security occurring on or after the earlier of the following the dates:

12

(A) The date on which a standard relating to

13

requirements for entities that are not covered

14

entities that includes requirements relating to

15

breach notification has been promulgated by the Secretary. (B) The date on which a standard relating to requirements for entities that are not covered entities that includes requirements relating to breach notification has been promulgated by the Federal Trade Commission and has taken effect. SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.

Each organization, with respect to a covered entity, that provides data transmission of protected health inforHR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

mation to such entity (or its business associate) and that

3

requires access on a routine basis to such protected health

4

information, such as a Health Information Exchange Orga-

5

nization, Regional Health Information Organization, E6 7

prescribing Gateway, or each vendor that contracts with a

8

covered entity to allow that covered entity to offer a per-

9

sonal health record to patients as part of its electronic

10 11

health record, is required to enter into a written contract (or other written arrangement) described in section

12 13 14 15

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 WRONG FUL 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

considered to have obtained or disclosed individually

3

identifiable health information in violation of this part if

4

the information is maintained by a covered entity (as

5

defined in the HIPAA privacy regulation described in 6 7

section 1180(b)(3)) and the individual obtained or

8

disclosed such information without authorization.’’.

9

SEC. 13410. IMPROVED ENFORCEMENT.

10 11

(a) IN G ENERAL.—Section 1176 of the Social Security Act (42 U.S.C. 1320d–5) is amended—

12

(1) in subsection (b)(1), by striking ‘‘the act con-

13 14 15

stitutes an offense punishable under section 1177’’ and inserting ‘‘a penalty has been imposed under section 1177 with respect to such act’’; and (2) by adding at the end the following new subsection: ‘‘(c) N ONCOMPLIANCE D UE TO W ILLFUL N EGLECT .— ‘‘(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) R

EQUIRED INVESTIGATION .—For

purposes of

paragraph (1), the Secretary shall formally investigate any complaint of a violation of a provision of this part HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

if a preliminary investigation of the facts of the

3

complaint indicate such a possible violation due to

4

willful neglect.’’.

5

(b) E FFECTIVE D ATE ; R EGULATIONS .— 6

(1) The amendments made by subsection (a)

7 8

shall apply to penalties imposed on or after the date that is 24 months after the date of the

9 10

enactment of this title.

11

(2) Not later than 18 months after the date of the

12

enactment of this title, the Secretary of Health and 13 14 15

Human Services shall promulgate regulations to implement such amendments. (c) D ISTRIBUTION OF C ERTAIN C IVIL M ONETARY PEN ALTIES

C OLLECTED .— (1) IN GENERAL.—Subject to the regulation pro-

mulgated pursuant to paragraph (3), any civil monetary penalty or monetary settlement collected with respect to an offense punishable under this subtitle or section 1176 of the Social Security Act (42 U.S.C. 1320d–5) insofar as such section relates to privacy or security shall be transferred to the Office of Civil Rights of the Department of Health and Human Services to be used for purposes of enforcing the proHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

visions of this subtitle and subparts C and E of part

3

164 of title 45, Code of Federal Regulations, as such

4

provisions are in effect as of the date of enactment of

5

this Act. 6

(2) G

7

AO REPORT .—Not

later than 18 months after

8

the date of the enactment of this title, the Comptroller

9

General shall submit to the Secretary a report

10 11

including recommendations for a methodology under which an individual who is harmed by an act that

12 13 14 15

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) E

STABLISHMENT OF METHODOLOGY TO DIS

TRIBUTE 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 colHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

lected with respect to such offense.

3 4

(4) A PPLICATION OF METHODOLOGY.—The methodology under paragraph (3) shall be applied with re-

5

spect to civil monetary penalties or monetary settle6 7

ments imposed on or after the effective date of the reg-

8

ulation.

9

(d) T

10

IERED INCREASE IN

A MOUNT OF C IVIL M ONETARY

PENALTIES .—

11

(1) IN GENERAL.—Section 1176(a)(1) of the Social

12 13 14 15

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 proHR 1 PP

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2

1 2

vision in which it is established that the violation

3

was due to reasonable cause and not to willful

4

neglect, a penalty for each such violation of an

5

amount that is at least the amount described in 6

paragraph (3)(B) but not to exceed the amount

7

described in paragraph (3)(D); and

8 9

‘‘(C) in the case of a violation of such provi-

10

sion in which it is established that the violation

11

was due to willful neglect—

12

‘‘(i) if the violation is corrected as de-

13

scribed in subsection (b)(3)(A), a penalty in

14

an amount that is at least the amount de-

15

scribed 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

harm resulting from such violation.’’.

3

(2) T

4

IERS OF PENALTIES DESCRIBED .—Section

1176(a) of such Act (42 U.S.C. 1320d–5(a)) is further

5

amended by adding at the end the following new 6 7

paragraph: ‘‘(3) T

8 9 10

IERS OF PENALTIES DESCRIBED .—For

purposes of paragraph (1), with respect to a violation by a person of a provision of this part—

11

‘‘(A) the amount described in this subpara-

12

graph is $100 for each such violation, except that

13

the total amount imposed on the person for all

14

such violations of an identical requirement or

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

all such violations of an identical requirement or

3

prohibition during a calendar year may not ex-

4

ceed $250,000; and

5

‘‘(D) the amount described in this subpara6

graph is $50,000 for each such violation, except

7 8

that the total amount imposed on the person for

9

all such violations of an identical requirement or

10

prohibition during a calendar year may not ex-

11

ceed $1,500,000.’’.

12

(3) C

13 14 15

ONFORMING 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 HR 1 PP

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2

1

the failure to comply is corrected’’; and

2 3

(ii) in subparagraph (B), by striking

4

‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it

5

appears. 6

(4) E

7

FFECTIVE DATE .—The

amendments made by

8

this subsection shall apply to violations occurring

9

after the date of the enactment of this title.

10 11

(e) E NFORCEMENT T HROUGH S TATE A TTORNEYS G EN ERAL .—

12

(1) IN GENERAL.—Section 1176 of the Social Se-

13 14 15

curity Act (42 U.S.C. 1320d–5) is amended by adding at the end the following new subsection: ‘‘(d) E

NFORCEMENT BY S TATE

‘‘(1) C

A TTORNEYS G ENERAL.—

IVIL ACTION .—Except

as provided in sub-

section (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— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) to enjoin further such violation by the

2 3

defendant; or

4

‘‘(B) to obtain damages on behalf of such

5

residents of the State, in an amount equal to the 6

amount determined under paragraph (2). ‘‘(2)

7

S TATUTORY DAMAGES .—

8 9

‘‘(A) I N GENERAL.—For purposes of para-

10

graph (1)(B), the amount determined under this

11

paragraph is the amount calculated by multi-

12

plying the number of violations by up to $100.

13

For purposes of the preceding sentence, in the

14

case of a continuing violation, the number of vio-

15

lations shall be determined consistent with the HIPAA privacy regulations (as defined in section 1180(b)(3)) for violations of subsection (a). ‘‘(B) L

IMITATION .—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) R

EDUCTION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

penalty under subsection (a) under the HIPAA

3

privacy regulations.

4

‘‘(3) A

TTORNEY FEES .—In

the case of any suc-

5

cessful action under paragraph (1), the court, in its 6 7 8

discretion, may award the costs of the action and reasonable attorney fees to the State.

9 10 11

‘‘(4) N

OTICE TO SECRETARY.—The

State shall

serve prior written notice of any action under paragraph (1) upon the Secretary and provide the Sec-

12 13 14 15

retary 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) C

ONSTRUCTION .—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

‘‘(6) VENUE; SERVICE OF PROCESS .—

3

‘‘(A) V ENUE.—Any action brought under

4

paragraph (1) may be brought in the district

5

court of the United States that meets applicable

6

requirements relating to venue under section

7

1391 of title 28, United States Code.

8

‘‘(B) S

9 10

ERVICE OF PROCESS .—In

an action

brought under paragraph (1), process may be

11

served in any district in which the defendant—

12

‘‘(i) is an inhabitant; or ‘‘(ii) maintains a 13

physical place of business.

14

‘‘(7) L

15

IMITATION 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) A TION .—A

PPLICATION OF CMP STATUTE OF LIMITA -

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

consistent with the second sentence of section

3

1128A(c)(1).’’.

4

(2) C

ONFORMING AMENDMENTS .—Subsection

(b)

5

of such section, as amended by subsection (d)(3), is 6 7

amended— (A) in paragraph (1), by striking ‘‘A penalty

8 9

may not be imposed under subsection (a)’’ and

10

inserting ‘‘No penalty may be imposed under

11

subsection (a) and no damages obtained under

12

subsection (d)’’;

13

(B) in paragraph (2)(A)—

14

(i) after ‘‘subsection (a)(1)(C),’’, by

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(D) in paragraph (3), by inserting ‘‘and any

2 3

damages under subsection (d)’’ after ‘‘any

4

penalty under subsection (a)’’.

5

(3) E

FFECTIVE DATE .—The

amendments made by

6 7

this subsection shall apply to violations occurring

8

after the date of the enactment of this Act.

9

(f) A

10 11

LLOWING

TION .—Such

C ONTINUED U SE OF C ORRECTIVE A C -

section is further amended by adding at the

end the following new subsection:

12 13 14 15

‘‘(e) A LLOWING C ONTINUED U SE OF C ORRECTIVE A C TION .—Nothing

in this section shall be construed as pre-

venting the Office of Civil Rights of the Department of Health and Human Services from continuing, in its discretion, to use corrective action without a penalty in cases where the person did not know (and by exercising reasonable diligence would not have known) of the violation involved.’’. SEC. 13411. AUDITS.

The Secretary shall provide for periodic audits to ensure that covered entities and business associates that are subject to the requirements of this subtitle and subparts C and E of part 164 of title 45, Code of Federal Regulations, as such provisions are in effect as of the date of enactment HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

of this Act, comply with such requirements. PART II—RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE DATE; REPORTS

5 SEC. 13421. RELATIONSHIP TO OTHER LAWS.

6 7

(a) A

PPLICATION OF H IPAA

S TATE PREEMPTION .—

8

Section 1178 of the Social Security Act (42 U.S.C. 1320d–

9

7) shall apply to a provision or requirement under this sub-

10

title in the same manner that such section applies to a pro-

11 12

vision or requirement under part C of title XI of such Act or a standard or implementation specification adopted or

13 14 15

established under sections 1172 through 1174 of such Act. (b) H EALTH INSURANCE PORTABILITY AND A CCOUNT ABILITY A CT .—The

standards governing the privacy and

security of individually identifiable health information promulgated by the Secretary under sections 262(a) and 264 of the Health Insurance Portability and Accountability Act of 1996 shall remain in effect to the extent that they are consistent with this subtitle. The Secretary shall by rule amend such Federal regulations as required to make such regulations consistent with this subtitle. In carrying out the preceding sentence, the Secretary shall revise the definition of ‘‘psychotherapy notes’’ in section 164.501 of title 45, Code of Federal Regulations, to include test data that is HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

related to direct responses, scores, items, forms,

3

protocols, manuals, or other materials that are part of a

4

mental health evaluation, as determined by the mental

5

health professional providing treatment or evaluation. 6 7 8 9 10 11 12

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.

13

Except as otherwise specifically provided, the provi14 15

sions 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) R EPORT ON C OMPLIANCE.— (1) I N 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, in-

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1 2

cluding the provisions of this subtitle as well as the

3

provisions of subparts C and E of part 164 of title 45,

4

Code of Federal Regulations, (as such provisions are

5

in effect as of the date of enactment of this Act) 6 7

relating to privacy and security of health information

8

that are received by the Secretary during the year for

9

which the report is being prepared. Each such report

10 11

shall include, with respect to such complaints received during the year—

12

(A) the number of such complaints;

13

(B) the number of such complaints resolved

14

informally, a summary of the types of such com-

15

plaints 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; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(D) the number of compliance reviews con-

2 3

ducted and the outcome of each such review;

4

(E) the number of subpoenas or inquiries

5

issued; 6

(F) the Secretary’s plan for improving com-

7 8

pliance with and enforcement of such provisions

9

for the following year; and

10

(G) the number of audits performed and a

11

summary of audit findings pursuant to section

12

13411.

13

(2) A

14 15

VAILABILITY 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) S TUDY

AND

R EPORT

ON

A PPLICATION

OF

PRIVACY

AND

S ECURITY R EQUIREMENTS TO N ON -H IPAA C OVERED E NTITIES .— (1) S

TUDY.—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, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

including—

3

(A) requirements relating to security, pri-

4

vacy, and notification in the case of a breach of

5

security or privacy (including the applicability of 6

an exemption to notification in the case of in-

7 8

dividually identifiable health information that

9

has been rendered unusable, unreadable, or inde-

10

cipherable through technologies or

11

methodologies recognized by appropriate

12

professional organization or standard setting

13

bodies to provide effective security for the

14

information) that should be applied to—

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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2

2

personal health record; and

3

(v) third party service providers used

4

by a vendor or entity described in clause

5

(i), (ii), (iii), or (iv) to assist in providing 6

personal health record products or services;

7 8 9

(B) a determination of which Federal gov-

10

ernment agency is best equipped to enforce such

11

requirements recommended to be applied to such

12

vendors, entities, and service providers under

13

subparagraph (A); and

14

(C) a timeframe for implementing regula-

15

tions based on such findings. (2) R EPORT .—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2 3 4

(c) G

UIDANCE ON IMPLEMENTATION

S PECIFICATION T O

D E -IDENTIFY PROTECTED H EALTH INFORMATION .— Not later than 12 months after the date of the enactment of this title,

5

the Secretary shall, in consultation with stakeholders, issue 6 7

guidance on how best to implement the requirements for

8

the de-identification of protected health information under

9

section 164.514(b) of title 45, Code of Federal Regulations.

10 11

(d) G AO R EPORT ON T REATMENT D ISCLOSURES .—Not

12 13 14 15

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 HR 1 PP

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1 2

care provided to the individual and with respect to the abil-

3

ity of the health care provider to manage such best prac-

4

tices, and an examination of the use of electronic informed

5

consent for disclosing protected health information for 6 7 8 9 10 11

treatment, payment, and health care operations. (e) R EPORT R EQUIRED .—Not later than 1 year after the date of enactment of this section, the Government Accountability Office shall submit to Congress and the Secretary of Health and Human Services a report on the im-

12 13 14 15

pact of any of the provisions of, or amendments made by, this division or division B that are related to the Health Insurance Portability and Accountability Act of 1996 and section 552a of title 5, United States Code, on health insurance premiums and overall health care costs.

TITLE XIV—STATE FISCAL STABILIZATION DEPARTMENT OF EDUCATION S TATE FISCAL S TABILIZATION FUND For necessary expenses for a State Fiscal Stabilization Fund, $39,000,000,000, which shall be administered by the Department of Education, and shall be available through September 30, 2010. GENERAL PROVISIONS—THIS TITLE HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2 3 4 5

SEC. 1401. ALLOCATIONS.

(a) O

UTLYING

A REAS .—The Secretary of Education

shall first allocate one-half of 1 percent to the outlying areas on the basis of their respective needs, as determined

6

by the Secretary, for activities consistent with this title 7 8 9 10 11 12

under such terms and conditions as the Secretary may determine. (b) A DMINISTRATION AND O VERSIGHT .—The Secretary may reserve up to $25,000,000 for administration and oversight of this title, including for program evaluation.

13 14 15

(c) R ESERVATION FOR A DDITIONAL PROGRAMS .—After reserving funds under subsections (a) and (b), the Secretary shall reserve $7,500,000,000 for grants under sections 1406 and 1407. (d) S

TATE

A LLOCATIONS .—After carrying out sub-

sections (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) S TATE G RANTS .—From funds allocated under subHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

section (d), the Secretary shall make grants to the Governor

3

of each State.

4

(f) R EALLOCATION .—The Governor shall return to the

5

Secretary any funds received under subsection (e) that the 6 7

Governor does not obligate within 1 year of receiving a

8

grant, and the Secretary shall reallocate such funds to the

9

remaining States in accordance with subsection (d).

10 11 12

SEC. 1402. STATE USES OF FUNDS.

E DUCATION FUND .—(a) IN GENERAL.—The Governor shall use the State’s allocation under section 1401 for the

13 14 15

support of elementary, secondary, and postsecondary education and, as applicable, early childhood education programs and services. (b) R

ESTORING 2008 STATE SUPPORT FOR EDUCATION .—

(1) I N GENERAL.—The Governor shall first use the funds described in subsection (a)— (A) to provide the amount of funds, through the State’s principal elementary and secondary funding formula, that is needed to restore State support for elementary and secondary education to the fiscal year 2008 level; and where applicable, to allow existing State formula increases for

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1 2

fiscal years 2009, 2010, and 2011 to be imple-

3

mented and allow funding for phasing in State

4

equity and adequacy adjustments that were en-

5

acted prior to July 1, 2008; and 6

(B) to provide the amount of funds to public

7 8

institutions of higher education in the State that

9

is needed to restore State support for post-

10

secondary education to the fiscal year 2008 level.

11 12 13 14 15

(2) S HORTFALL .—If the Governor determines that the amount of funds available under subsection (a) is insufficient to restore State support for education to the levels described in subparagraphs (A) and (B) of paragraph (1), the Governor shall allocate those funds between those clauses in proportion to the relative shortfall in State support for the education sectors described in those clauses. (c) S

UBGRANTS TO IMPROVE BASIC PROGRAMS OPERATED

BY LOCAL EDUCATIONAL AGENCIES .—After

carrying out

subsection (b), the Governor shall use any funds remaining under subsection (a) to provide local educational agencies in the State with subgrants based on their relative shares of funding under part A of title I of the Elementary and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.)

3

for the most recent year for which data are available.

4

SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGEN

5

CIES.

6

(1) IN G ENERAL.—A local educational agency that re7 8 9

ceives funds under this title may use the funds for any activity authorized by the Elementary and Secondary Edu-

10

cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), the

11

Individuals with Disabilities Education Act (20 U.S.C.

12

1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career and

13 14 15

Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (‘‘the Perkins Act’’). (b) P ROHIBITION .—A local educational agency may not use funds received under this title for capital projects unless authorized by ESEA, IDEA, or the Perkins Act. SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

(a) IN G ENERAL.—A public institution of higher education that receives funds under this title shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students. (b) PROHIBITION .—An institution of higher education HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

may not use funds received under this title to increase its

3

endowment.

4

(c) A

DDITIONAL

PROHIBITION .—An institution of higher

5

education may not use funds received under this title for 6 7 8 9 10 11 12

construction, renovation, or facility repair. SEC. 1405. STATE APPLICATIONS.

(a) I N G ENERAL.—The Governor of a State desiring to receive an allocation under section 1401 shall submit an application at such time, in such manner, and containing such information as the Secretary may reasonably require.

13 14

(b) A PPLICATION .—The Governor shall— (1) include the assurances described in

15

subsection (d); (2) provide baseline data that demonstrates the State’s current status in each of the areas described in such assurances; and (3) describe how the State intends to use its allocation. (c) INCENTIVE G RANT A PPLICATION .—The Governor of a State seeking a grant under section 1406 shall— (1) submit an application for consideration; (2) describe the status of the State’s progress in each of the areas described in subsection (d);

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1

(3) describe the achievement and graduation

2 3 4

rates of public elementary and secondary school students in the State, and the strategies the State is em-

5

ploying to help ensure that all subgroups of students 6 7

identified in 1111(b)(2) of ESEA in the State continue

8

making progress toward meeting the State’s student

9

academic achievement standards;

10 11

(4) describe how the State would use its grant funding to improve student academic achievement in

12 13 14 15

the State, including how it will allocate the funds to give priority to high-need schools and local educational agencies; and (5) include a plan for evaluating its progress in closing achievement gaps. (d) A

SSURANCES .—An

application under subsection

(b) shall include the following assurances: (1) M AINTENANCE OF EFFORT .— (A) E

LEMENTARY AND SECONDARY EDU -

CATION .—The

State will, in each of fiscal years

2009 and 2010, maintain State support for elementary and secondary education at least at the level of such support in fiscal year 2006.

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1

(B) H

2 3

IGHER EDUCATION .—The

State will, in

each of fiscal years 2009 and 2010, maintain

4

State support for public institutions of higher

5

education (not including support for capital 6

projects or for research and development) at

7 8

least at the level of such support in fiscal year

9

2006.

10

(2) A

11

CHIEVING EQUITY IN TEACHER DISTRIBU -

TION .—The

State will take action, including activities

12 13 14 15

outlined in section 2113(c) of ESEA, to increase the number, and improve the distribution, of effective teachers and principals in high-poverty schools and local educational agencies throughout the State. (3) I MPROVING DATA .—The

COLLECTION AND

USE

OF

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) S

TANDARDS

AND

ASSESSMENTS .—The

State— (A) will enhance the quality of academic assessments described in section 1111(b)(3) of ESEA (20 U.S.C. 6311(b)(3)) through activities HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

such as those described in section 6112(a) of

3

such Act (20 U.S.C. 7301a(a));

4

(B) will comply with the requirements of

5

paragraphs (3)(C)(ix) and (6) of section 1111(b) 6

of ESEA (20 U.S.C. 6311(b)) and section

7 8

612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) re-

9

lated to the inclusion of children with disabilities

10

and limited English proficient students in State

11

assessments, the development of valid and reli-

12

able assessments for those students, and the pro-

13

vision of accommodations that enable their par-

14

ticipation in State assessments; and

15

(C) will take steps to improve State academic content standards and student academic achievement standards consistent with 6401(e)(1)(A)(ii) of the America COMPETES Act. (5) will ensure compliance with the requirements of section 1116(a)(7)(C)(iv) and section 1116(a)(8)(B) with respect to schools identified under such sections. SEC. 1406. STATE INCENTIVE GRANTS.

(a) I N G ENERAL.—From the total amount reserved under section 1401(c) that is not used for section 1407, the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Secretary shall, in fiscal year 2010, make grants to States

3

that have made significant progress in meeting the objec-

4

tives of paragraphs (2), (3), (4), and (5) of section 1405(d).

5 6 7 8

(b) B

ASIS FOR

G RANTS .—The Secretary shall determine

which States receive grants under this section, and the amount of those grants, on the basis of information pro-

9 10 11

vided in State applications under section 1405 and such other criteria as the Secretary determines appropriate.

12

(c) S UBGRANTS TO L OCAL E DUCATIONAL A GENCIES .—

13

Each State receiving a grant under this section shall use at

14 15

least 50 percent of the grant to provide local educational agencies in the State with subgrants based on their relative shares of funding under part A of title I of ESEA (20 U.S.C. 6311 et seq.) for the most recent year. SEC. 1407. INNOVATION FUND.

(a) IN G ENERAL.— (1) E

LIGIBLE ENTITY.—For

the purposes of this

section, the term ‘‘eligible entity’’ means— (A) A local educational agency; or (B) a partnership between a nonprofit organization and— (i) one or more local educational agencies; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(ii) or a consortium of schools.

2 3

(2) P ROGRAM ESTABLISHED .—From the total

4

amount reserved under section 1401(c), the Secretary

5

may reserve up to $650,000,000 to establish an Inno-

6 7

vation Fund, which shall consist of academic achieve

8

ment awards that recognize eligible entities that meet

9

the requirements described in subsection (b).

10 11

(3) B

ASIS FOR AWARDS .—The

Secretary shall

make awards to eligible entities that have made sig-

12

nificant gains in closing the achievement gap as de13 14

scribed in subsection (b)(1)— (A) to allow such eligible entities to expand

15

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) E

LIGIBILITY.—To

be eligible for such an award, an

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2

1 2

gaps between groups of students described in section

3

1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2));

4

(2) have exceeded the State’s annual measurable

5

objectives consistent with such section 1111(b)(2) for 6 7

2 or more consecutive years or have demonstrated

8

success in significantly increasing student academic

9

achievement for all groups of students described in

10 11

such section through another measure, such as measures described in section 1111(c)(2) of ESEA;

12

(3) have made significant improvement in other

13 14 15

areas, such as graduation rates or increased recruitment and placement of high-quality teachers and school leaders, as demonstrated with meaningful data; and (4) demonstrate that they have established partnerships with the private sector, which may include philanthropic organizations, and that the private sector will provide matching funds in order to help bring results to scale. SEC. 1408. STATE REPORTS.

A State receiving funds under this title shall submit a report to the Secretary, at such time and in such manner as the Secretary may require, that describes— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(1) the uses of funds provided under this

2 3

title within the State;

4

(2) how the State distributed the funds it re-

5

ceived under this title; 6

(3) the number of jobs that the Governor esti-

7 8

mates were saved or created with funds the State re-

9

ceived under this title;

10 11

(4) tax increases that the Governor estimates were averted because of the availability of funds from

12 13

this title; (5) the State’s progress in reducing inequities in

14 15

the distribution of teachers, in implementing a State student longitudinal data system, and in developing and implementing valid and reliable assessments for limited English proficient students and children with disabilities; (6) the tuition and fee increases for in-State students imposed by public institutions of higher education in the State during the period of availability of funds under this title, and a description of any actions taken by the State to limit those increases; and (7) the extent to which public institutions of higher education maintained, increased, or decreased HR 1 PP

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1 2

enrollment of in-State students, including students el-

3

igible for Pell Grants or other need-based financial

4 5

assistance. SEC. 1409. EVALUATION.

6 7 8 9 10 11

The Comptroller General of the United States shall conduct evaluations of the programs under sections 1406 and 1407 which shall include, but not be limited to, the criteria used for the awards made, the States selected for awards, award amounts, how each State used the award

12

received, and the impact of this funding on the 13 14 15

progress made toward closing achievement gaps. SEC. 1410. SECRETARY’S REPORT TO CONGRESS.

The Secretary shall submit a report to the Committee on Education and Labor of the House of Representatives, the Committee on Health, Education, Labor, and Pensions of the Senate, and the Committees on Appropriations of the House of Representatives and of the Senate, not less than 6 months following the submission of the State reports, that evaluates the information provided in the State reports under section 1408. SEC. 1411. PROHIBITION ON PROVISION OF CERTAIN AS SISTANCE.

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2

2

funds to provide financial assistance to students to attend

3

private elementary or secondary schools, unless such funds

4

are used to provide special education and related services

5

to children with disabilities, as authorized by the Individ6 7

uals with Disabilities Education Act (20 U.S.C. 1400 et

8

seq.).

9

SEC. 1412. DEFINITIONS.

10 11

Except as otherwise provided in this title, as used in this title—

12

(1) the term ‘‘institution of higher education’’

13 14 15

has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001); (2) the term ‘‘Secretary’’ means the Secretary of Education; (3) the term ‘‘State’’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico; and (4) any other term that is defined in section 9101 of ESEA (20 U.S.C. 7801) shall have the meaning given the term in such section. SEC. 1413. REGULATORY RELIEF.

(a) W

AIVER A UTHORITY.—Subject

to subsections (b)

and (c), the Secretary of Education may, as applicable, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

waive or modify, in order to ease fiscal burdens, any re-

3

quirement relating to the following:

4

(1) Maintenance of effort.

5

(2) The use of Federal funds to supplement, not

6 7 8 9 10

supplant, non-Federal funds. (b) D URATION .—A waiver under this section shall be for fiscal years 2009 and 2010. (c) L IMITATIONS .—

11 12

(1) R ELATION TO IDEA.—Nothing in this section shall be construed to permit the Secretary to waive or

13 14 15

modify any provision of the Individuals with Disabil ities Education Act (20 U.S.C. 1400 et seq.), except as described in a(1) and a(2). (2) M AINTENANCE OF EFFORT .—If the Secretary grants a waiver or modification under this section waiving or modifying a requirement relating to maintenance of effort for fiscal years 2009 and 2010, the level of effort required for fiscal year 2011 shall not be reduced because of the waiver or modification.

TITLE XV—RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY INDEPENDENT ADVISORY PANEL HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2 3

SEC. 1501. DEFINITIONS.

In this title:

4 5 6

(1) A GENCY.—The term ‘‘agency’’ has the meaning given under section 551 of title 5, United States Code.

7

(2) B

8 9 10

term ‘‘Board’’ means the Re-

covery Accountability and Transparency Board established in section 1511.

11 12

OARD .—The

(3) C

HAIRPERSON .—The

term ‘‘Chairperson’’

means the Chairperson of the Board.

13

(4) C OVERED FUNDS .—The term ‘‘covered funds’’

14 15

means any funds that are expended or obligated— (A) from appropriations made under this Act; and (B) under any other authorities provided under this Act. (5) PANEL .—The term ‘‘Panel’’ means the Recovery Independent Advisory Panel established in section 1531.

Subtitle A—Recovery Accountability and Transparency Board SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNT ABILITY AND TRANSPARENCY BOARD.

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2

1 2

There is established the Recovery Accountability and

3

Transparency Board to coordinate and conduct oversight

4 5

of covered funds to prevent fraud, waste, and abuse. SEC. 1512. COMPOSITION OF BOARD.

6 7

(a) C HAIRPERSON .— (1) D ESIGNATION OR APPOINTMENT .—The President

8 9

shall—

10

(A) designate the Deputy Director for Man-

11

agement of the Office of Management and Budget

12

to serve as Chairperson of the Board;

13

(B) designate another Federal officer who

14

was appointed by the President to a position that

15

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) C OMPENSATION .— (A) D

ESIGNATION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

Chairperson.

2 3

(B) A

4

CER .—If

PPOINTMENT OF NON -FEDERAL OFFI-

the President appoints an individual as

5

Chairperson under paragraph (1)(C), that in6

dividual shall be compensated at the rate of basic

7 8

pay prescribed for level IV of the Executive

9

Schedule under section 5315 of title 5, United

10 11

States Code. (b) M

EMBERS .—The

members of the Board shall in-

12 13

clude— (1) the Inspectors General of the Departments of

14 15

Agriculture, Commerce, Education, Energy, Health and Human Services, Homeland Security, Justice, Transportation, Treasury, and the Treasury Inspector General for Tax Administration; and (2) any other Inspector General as designated by the President from any agency that expends or obligates covered funds. SEC. 1513. FUNCTIONS OF THE BOARD.

(a) FUNCTIONS .— (1) I N GENERAL.—The Board shall coordinate and conduct oversight of covered funds in order to prevent fraud, waste, and abuse. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) S

2 3

PECIFIC FUNCTIONS .—The

functions of the

Board shall include—

4

(A) reviewing whether the reporting of con-

5

tracts and grants using covered funds meets ap6

plicable standards and specifies the purpose of

7 8

the contract or grant and measures of perform-

9

ance;

10

(B) reviewing whether competition require-

11

ments applicable to contracts and grants using

12

covered funds have been satisfied;

13

(C) auditing and investigating covered

14

funds to determine whether wasteful spending,

15

poor contract or grant management, or other abuses are occurring; (D) reviewing whether there are sufficient qualified acquisition and grant personnel overseeing covered funds; (E) reviewing whether personnel whose duties involve acquisitions or grants made with covered funds receive adequate training; and (F) reviewing whether there are appropriate mechanisms for interagency collaboration relating to covered funds. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

(b) R EPORTS .—

3 4 5

(1) Q UARTERLY REPORTS .—The Board shall submit quarterly reports to the President and Congress, including the Committees on Appropriations of the

6 7

Senate and House of Representatives, summarizing

8

the findings of the Board and the findings of inspectors

9

general of agencies. The Board may submit additional

10

reports as appropriate.

11

(2) A

NNUAL REPORTS .—The

Board shall submit

12

annual reports to the President and the Committees 13 14 15

on Appropriations of the Senate and House of Representatives, consolidating applicable quarterly reports on the use of covered funds. (3) PUBLIC AVAILABILITY.— (A) I N GENERAL.—All reports submitted under this subsection shall be made publicly available and posted on a website established by the Board. (B) R

EDACTIONS .—Any

portion of a report

submitted under this subsection may be redacted when made publicly available, if that portion would disclose information that is not subject to disclosure under section 552 of title 5, United HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

States Code (commonly known as the Freedom of

3

Information Act).

4

(c) R ECOMMENDATIONS .—

5

(1) I N GENERAL.—The Board shall make rec-

6 7 8

ommendations to agencies on measures to prevent fraud, waste, and abuse relating to covered funds. (2) R

9 10 11

ESPONSIVE REPORTS .—Not

later than 30 days

after receipt of a recommendation under paragraph (1), an agency shall submit a report to the President,

12

the congressional committees of jurisdiction, including 13 14 15

the Committees on Appropriations of the Senate and House of Representatives, and the Board on— (A) whether the agency agrees or disagrees with the recommendations; and (B) any actions the agency will take to implement the recommendations. SEC. 1514. POWERS OF THE BOARD.

(a) IN G ENERAL.—The Board shall conduct, supervise, and coordinate audits and investigations by inspectors general of agencies relating to covered funds. (b) A UDITS AND INVESTIGATIONS .—The Board may— (1) conduct its own independent audits and investigations relating to covered funds; and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(2) collaborate on audits and investigations re-

3

lating to covered funds with any inspector general of

4

an agency.

5

(c) A UTHORITIES .— 6

(1) A

7

UDITS AND INVESTIGATIONS .—In

conducting

8

audits and investigations, the Board shall have the

9

authorities provided under section 6 of the Inspector

10

General Act of 1978 (5 U.S.C. App.).

11

(2) S

TANDARDS AND GUIDELINES .—The

Board

12

shall carry out the powers under subsections (a) and 13 14 15

(b) in accordance with section 4(b)(1) of the Inspector General Act of 1978 (5 U.S.C. App.). (d) PUBLIC H EARINGS .—The Board may hold public hearings and Board personnel may conduct investigative depositions. The head of each agency shall make all officers and employees of that agency available to provide testimony to the Board and Board personnel. The Board may issue subpoenas to compel the testimony of persons who are not Federal officers or employees. Any such subpoenas may be enforced as provided under section 6 of the Inspector General Act of 1978 (5 U.S.C. App.). (e) C ONTRACTS .—The Board may enter into contracts to enable the Board to discharge its duties under this subHR 1 PP

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1

2

2

title, including contracts and other arrangements for au-

3

dits, studies, analyses, and other services with public agen-

4

cies and with private persons, and make such payments as

5

may be necessary to carry out the duties of the Board. 6 7

(f) T

RANSFER OF FUNDS .—The

Board may transfer

8

funds appropriated to the Board for expenses to support

9

administrative support services and audits or investiga-

10

tions of covered funds to any office of inspector general,

11

the Office of Management and Budget, the General

12 13 14

Services Administration, and the Panel. SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AU THORITIES.

15

(a) E MPLOYMENT AND PERSONNEL A UTHORITIES .— (1) IN GENERAL.— (A) A

UTHORITIES .—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) A

PPLICATION .—For

purposes of exer-

cising the authorities described under subpara graph (A), the term ‘‘Chairperson of the Board’’ shall be substituted for the term ‘‘head of a temHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

porary organization’’.

2 3

(C) C

4

ONSULTATION .—In

exercising the au-

thorities described under subparagraph (A), the

5

Chairperson shall consult with members of the 6

Board.

7

(2) E

8 9 10 11

MPLOYMENT 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—

12

(A) paragraph (2) of subsection (b) of sec-

13

tion 3161 of that title (relating to periods of ap-

14

pointments) shall not apply; and

15

(B) no period of appointment may exceed the date on which the Board terminates under section 1521. (b) INFORMATION AND A SSISTANCE.— (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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) R

2 3 4

EPORT OF REFUSALS .—Whenever

information

or assistance requested by the Board is, in the judgment of the Board, unreasonably refused or not

5

provided, the Board shall report the circumstances to 6 7

the congressional committees of jurisdiction, including

8

the Committees on Appropriations of the Senate and

9

House of Representatives, without delay.

10 11

(c) A DMINISTRATIVE S UPPORT .—The General Services Administration shall provide the Board with administrative

12 13 14 15

support services, including the provision of office space and facilities. SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL.

(a) INDEPENDENT A UTHORITY.—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) R EQUESTS BY B OARD .—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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Committees on Appropriations of the Senate and House of

3

Representatives. The report shall state the reasons that the

4 5

inspector general has rejected the request in 6 7 8

whole or in part. SEC. 1517. COORDINATION WITH THE COMPTROLLER GEN ERAL AND STATE AUDITORS.

9 10

The Board shall coordinate its oversight activities

11

with the Comptroller General of the United States and

12

State auditor generals.

13 SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT

14 AND CONTRACTOR WHISTLEBLOWERS.

15

(a) P ROHIBITION OF R EPRISALS .—An employee of any non-Federal employer receiving covered funds may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to the Board, an inspector general, the Comptroller General, a member of Congress, or a the head of a Federal agency, or their representatives, information that the employee reasonably believes is evidence of— (1) gross mismanagement of an agency contract or grant relating to covered funds; (2) a gross waste of covered funds; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(3) a substantial and specific danger to public

2 3

health or safety; or

4

(4) a violation of law related to an agency con-

5

tract (including the competition for or negotiation of 6

a contract) or grant, awarded or issued

7 8 9

relating to covered funds. (b) INVESTIGATION OF C OMPLAINTS .—

10 11

(1) IN GENERAL.—A person who believes that the person has been subjected to a reprisal prohibited by

12

subsection (a) may submit a complaint to the appro13 14 15

priate inspector general. Unless the inspector general determines that the complaint is frivolous, the inspector general shall investigate the complaint and, upon completion of such investigation, submit a report of the findings of the investigation to the person, the person’s employer, the head of the appropriate agency, and the Board. (2) T IME LIMITATIONS FOR ACTIONS .— (A) I N GENERAL.—Except as provided under subparagraph (B), the inspector general shall make a determination that a complaint is frivolous or submit a report under paragraph (1) within 180 days after receiving the complaint. HR 1 PP

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1

(B) E XTENSION .—If the inspector general is

2 3

unable to complete an investigation in time to

4

submit a report within the 180-day period speci-

5

fied under subparagraph (A) and the person sub6

mitting the complaint agrees to an extension of

7 8

time, the inspector general shall submit a report

9

under paragraph (1) within such additional pe-

10

riod of time as shall be agreed upon between the

11

inspector general and the person submitting the

12

complaint.

13

(c) R EMEDY AND E NFORCEMENT A UTHORITY.—

14

(1) A

15

GENCY ACTION .—Not

later than 30 days

after receiving an inspector general report under subsection (b), the head of the agency concerned shall determine whether there is sufficient basis to conclude that the non-Federal employer has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take 1 or more of the following actions: (A) Order the employer to take affirmative action to abate the reprisal. (B) Order the employer to reinstate the person to the position that the person held before the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

reprisal, together with the compensation (includ-

3

ing back pay), employment benefits, and other

4

terms and conditions of employment that would

5

apply to the person in that position if the reprisal 6

had not been taken.

7

(C) Order the employer to pay the com-

8 9

plainant an amount equal to the aggregate

10

amount of all costs and expenses (including at

11

torneys’ fees and expert witnesses’ fees) that were

12

reasonably incurred by the complainant for, or

13

in connection with, bringing the complaint re-

14

garding the reprisal, as determined by the head

15

of the agency. (2) C

IVIL ACTION .—If

the head of an agency

issues an order denying relief under paragraph (1) or has not issued an order within 210 days after the submission of a complaint under subsection (b), or in the case of an extension of time under subsection (b)(2)(B), not later than 30 days after the expiration of the extension of time, and there is no showing that such delay is due to the bad faith of the complainant, the complainant shall be deemed to have exhausted all administrative remedies with respect to the complaint, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and the complainant may bring a de novo action at

3

law or equity against the employer to seek

4

compensatory damages and other relief available

5

under this section in the appropriate district court of 6 7

the United States, which shall have jurisdiction over

8

such an action without regard to the amount in con-

9

troversy. Such an action shall, at the request of either

10

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

11

(3) E VIDENCE.—An inspector general determina-

12 13 14 15

tion and an agency head order denying relief under paragraph (2) shall be admissible in evidence in any de novo action at law or equity brought in accordance with this subsection. (4) J UDICIAL ENFORCEMENT OF ORDER .—Whenever a person fails to comply with an order issued under paragraph (1), the head of the agency shall file an action for enforcement of such order in the United States district court for a district in which the reprisal was found to have occurred. In any action brought under this paragraph, the court may grant appropriate relief, including injunctive relief and compensatory and exemplary damages. (5) J UDICIAL REVIEW .—Any person adversely afHR 1 PP

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2

1 2

fected or aggrieved by an order issued under para-

3

graph (1) may obtain review of the order’s conform-

4

ance with this subsection, and any regulations issued

5

to carry out this section, in the United States court of 6 7

appeals for a circuit in which the reprisal is alleged in

8

the order to have occurred. No petition seeking such

9

review may be filed more than 60 days after issuance

10 11

of the order by the head of the agency. Review shall conform to chapter 7 of title 5, United States Code.

12 13 14 15

(d) R ULE OF C ONSTRUCTION .—Nothing in this section may be construed to authorize the discharge of, demotion of, or discrimination against an employee for a disclosure other than a disclosure protected by subsection (a) or to modify or derogate from a right or remedy otherwise available to the employee. SEC. 1519. BOARD WEBSITE.

(a) E STABLISHMENT .—The Board shall establish and maintain a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds. (b) P URPOSE.—The website established and maintained under subsection (a) shall be a portal or gateway to key information relating to this Act and provide connecHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

tions to other Government websites with related informa-

3

tion.

4

(c) C

ONTENT AND

FUNCTION .—In establishing the

5

website established and maintained under subsection (a), 6 7

the Board shall ensure the following: (1) The website shall provide materials explain-

8 9

ing what this Act means for citizens. The materials

10

shall be easy to understand and regularly updated.

11

(2) The website shall provide accountability in-

12 13 14 15

formation, including a database of findings from audits, inspectors general, and the Government Accountability Office. (3) The website shall provide data on relevant economic, financial, grant, and contract information in user-friendly visual presentations to enhance public awareness of the use of covered funds. (4) The website shall provide detailed data on contracts awarded by the Government that expend covered funds, including information about the competitiveness of the contracting process, notification of solicitations for contracts to be awarded, and information about the process that was used for the award of contracts. HR 1 PP

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2

1

(5) The website shall include printable reports on

2 3 4

covered funds obligated by month to each State and congressional district.

5

(6) The website shall provide a means for 6 7 8

the public to give feedback on the performance of contracts that expend covered funds.

9 10 11

(7) The website shall be enhanced and updated as necessary to carry out the purposes of this subtitle. (d) W

AIVER .—The

Board may exclude posting con-

12 13 14 15

tractual or other information on the website on a case-bycase basis when necessary to protect national security. SEC. 1520. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as necessary to carry out this subtitle. SEC. 1521. TERMINATION OF THE BOARD.

The Board shall terminate on September 30, 2012.

Subtitle B—Recovery Independent Advisory Panel SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.

(a) E STABLISHMENT .—There is established the Recovery Independent Advisory Panel. (b) M EMBERSHIP.—The Panel shall be composed of 5 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

members who shall be appointed by the President. (c) Q UALIFICATIONS .—Members shall be appointed on the basis of expertise in economics, public finance, con-

5

tracting, accounting, or any other relevant field. 6 7

(d) I NITIAL M EETING .—Not later than 30 days after

8

the date on which all members of the Panel have been ap-

9

pointed, the Panel shall hold its first meeting.

10 11

(e) M

EETINGS .—The

Panel shall meet at the call of

the Chairperson of the Panel.

12 13 14 15

(f) Q UORUM .—A majority of the members of the Panel shall constitute a quorum, but a lesser number of members may hold hearings. (g) C

HAIRPERSON AND

VICE C HAIRPERSON .—The Panel

shall select a Chairperson and Vice Chairperson from among its members. SEC. 1532. DUTIES OF THE PANEL.

The Panel shall make recommendations to the Board on actions the Board could take to prevent fraud, waste, and abuse relating to covered funds. SEC. 1533. POWERS OF THE PANEL.

(a) H

EARINGS .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

to carry out this subtitle. (b) I NFORMATION FROM FEDERAL A GENCIES .—The Panel may secure directly from any agency such informa-

5

tion as the Panel considers necessary to carry out this sub6 7

title. Upon request of the Chairperson of the Panel, the

8

head of such agency shall furnish such information to the

9

Panel.

10 11

(c) P OSTAL S ERVICES .—The Panel may use the United States mails in the same manner and under

12 13 14 15

the same conditions as agencies of the Federal Government. (d) G

IFTS .—The

Panel may accept, use, and dispose

of gifts or donations of services or property. SEC. 1534. PANEL PERSONNEL MATTERS.

(a) C

OMPENSATION OF M EMBERS .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

shall serve without compensation in addition to that

3

received for their services as officers or employees of the

4

United States.

5

(b) T

RAVEL

E XPENSES .—The members of the Panel

6 7

shall be allowed travel expenses, including per diem in lieu

8

of subsistence, at rates authorized for employees of

9

agencies under subchapter I of chapter 57 of title 5,

10

United States Code, while away from their homes or

11

regular places of business in the performance of services

12 13 14

for the Panel. (c) S TAFF.— (1) IN GENERAL.—The Chairperson of the Panel

15

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) C

OMPENSATION .—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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

General Schedule pay rates, except that the rate of

3

pay for the executive director and other personnel

4

may not exceed the rate payable for level V of the Ex-

5

ecutive Schedule under section 5316 of such title. 6

(3) PERSONNEL AS FEDERAL EMPLOYEES .—

7

(A) I N GENERAL.—The executive director

8 9

and any personnel of the Panel who are employ-

10

ees shall be employees under section 2105 of title

11

5, United States Code, for purposes of chapters

12

63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of 13

that title.

14

(B) M

15

EMBERS OF PANEL .—Subparagraph

(A)

shall not be construed to apply to members of the Panel. (d) D ETAIL OF G OVERNMENT E MPLOYEES .—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) P ROCUREMENT OF T EMPORARY AND INTERMITTENT S ERVICES .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

basic pay prescribed for level V of the Executive Schedule

3

under section 5316 of such title.

4

(f) A

DMINISTRATIVE

S UPPORT .—The General Services

5

Administration shall provide the Board with administrative 6 7

support services, including the provision of office space

8

and facilities.

9

SEC. 1535. TERMINATION OF THE PANEL.

10 11 12

The Panel shall terminate on September 30, 2012. SEC. 1536. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as

13

necessary to carry out this subtitle. 14 15

Subtitle C—Reports of the Council of Economic Advisers SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC ADVIS ERS.

(a) I N G ENERAL.—In consultation with the Director of the Office of Management and Budget and the Secretary of the Treasury, the Chairperson of the Council of Economic Advisers shall submit to the Committees on Appropriations of the Senate and House of Representatives quarterly reports based on the reports required under section 1551 that detail the impact of programs funded through covered funds on employment, estimated economic growth, and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

other key economic indicators. (b) S UBMISSION OF R EPORTS .—

4 5

(1) F IRST REPORT .—The first report submitted under subsection (a) shall be submitted not later than

6 7 8

45 days after the end of the first full quarter following the date of enactment of this Act. (2) L

9 10 11

AST REPORT .—The

last report required to be

submitted under subsection (a) shall apply to the quarter in which the Board terminates under section

12

1521. 13 14

Subtitle D—Reports on Use of

15

Funds SEC. 1551. REPORTS ON USE OF FUNDS.

(a) S HORT T ITLE.—This section may be cited as the ‘‘Jobs Accountability Act’’. (b) D EFINITIONS .—In this section: (1) A GENCY.—The term ‘‘agency’’ has the meaning given under section 551 of title 5, United States Code. (2) R ECIPIENT .—The term ‘‘recipient’’— (A) means any entity that receives recovery funds (including recovery funds received through grant, loan, or contract) other than an individual; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

and

2 3

(B) includes a State that receives recovery

4

funds.

5

(3) R

ECOVERY FUNDS .—The

term ‘‘recovery

6 7

funds’’ means any funds that are made available— (A) from appropriations made under this

8 9

Act; and

10

(B) under any other authorities provided

11

under this Act.

12 13 14 15

(c) R

ECIPIENT

R EPORTS .—Not later than 10 days after

the end of each calendar quarter, each recipient that received recovery funds from an agency shall submit a report to that agency that contains— (1) the total amount of recovery funds received from that agency; (2) the amount of recovery funds received that were expended or obligated to projects or activities; and (3) a detailed list of all projects or activities for which recovery funds were expended or obligated, including— (A) the name of the project or activity; (B) a description of the project or activity; HR 1 PP

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2

1

(C) an evaluation of the completion status of

2 3

the project or activity; and

4

(D) an analysis of the number of jobs

5

created and the number of jobs retained by 6

the project or activity.

7 8 9 10 11

(d) A GENCY R EPORTS .—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) pub-

12 13 14 15

licly available by posting the information on a website. (e) O THER R EPORTS .—The Congressional Budget Office and the Government Accountability Office shall comment on the information described in subsection (c)(3)(D) for any reports submitted under subsection (c). Such comments shall be due within 7 days after such reports are submitted. TITLE XVI—GENERAL PROVISIONS—THIS ACT EMERGENCY DESIGNATION

S EC . 1601. Each amount in this Act is designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the budget for fiscal years 2008 and 2009.

3 4 5

AVAILABILITY

S EC . 1602. No part of any appropriation contained in this Act shall remain available for obligation beyond the

6 7

current fiscal year unless expressly so provided herein. RELATIONSHIP TO OTHER APPROPRIATIONS

8 9

S EC . 1603. Each amount appropriated or made avail-

10

able in this Act is in addition to amounts otherwise appro-

11

priated for the fiscal year involved. Enactment of this Act

12

shall have no effect on the availability of amounts under

13 14 15

the Continuing Appropriations Resolution, 2009 (division A of Public Law 110–329). BUY AMERICAN

S EC . 1604. U

SE OF A MERICAN IRON ,

S

TEEL , AND

M ANUFACTURED G OODS . (a) None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States. (b) Subsection (a) shall not apply in any case in which the head of the Federal department or agency involved finds that— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(1) applying subsection (a) would be inconsistent

2 3

with the public interest;

4

(2) iron, steel, and the relevant manufactured

5

goods are not produced in the United States if suffi6 7 8

cient and reasonably available quantities and of a satisfactory quality; or

9 10 11

(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.

12 13 14 15

(c) If the head of a Federal department or agency determines that it is necessary to waive the application of subsection (a) based on a finding under subsection (b), the head of the department or agency shall publish in the Federal Register a detailed written jurisdiction as to why the provision is being waived. (d) This section shall be applied in a manner consistent with United States obligations under international agreements. CERTIFICATION

S EC . 1605. With respect to funds in titles I though XVI of this Act made available to State, or local government agencies, the Governor, mayor, or other chief executive, as appropriate, shall certify that the infrastructure investment HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

has received the full review and vetting required by law

3

and that the chief executive accepts responsibility that the

4

infrastructure investment is an appropriate use of taxpayer

5

dollars. A State or local agency may not receive 6 7 8

infrastructure investment funding from funds made available in this Act unless this certification is made.

9 10 11

ECONOMIC STABILIZATION CONTRACTING

S EC . 1606. R

EFORM OF C ONTRACTING

PROCEDURES

U NDER EESA. Section 107(b) of the Emergency Economic

12

Stabilization Act of 2008 (12 U.S.C. 5217(b)) is amended 13 14 15

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)),’’. S EC . 1607. FINDINGS .— (1) The National Environmental Policy Act protects public health, safety and environmental quality: by ensuring transparency, accountability and public involvement in federal actions and in the use of public funds; (2) When President Nixon signed the National HR 1 PP

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2

1 2

Environmental Policy Act into law on January 1,

3

1970, he said that the Act provided the ‘‘direction’’

4

for the country to ‘‘regain a productive harmony be-

5

tween man and nature’’; 6

(3) The National Environmental Policy Act helps

7 8

to provide an orderly process for considering federal

9

actions and funding decisions and prevents ligation

10 11

and delay that would otherwise be inevitable and existed prior to the establishment of the National

12 13 14 15

Environmental Policy Act. (a) Adequate resources within this bill must be devoted to ensuring that applicable environmental reviews under the National Environmental Policy Act are completed on an expeditious basis and that the shortest existing applica ble process under the National Environmental Policy Act shall be utilized. (b) The President shall report to the Senate Environment and Public Works Committee and the House Natural Resources Committee every 90 days following the date of enactment until September 30, 2011 on the status and progress of projects and activities funded by this Act with respect to compliance with National Environmental Policy Act requirements and documentation. HR 1 PP

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1 2 3 4

PROHIBITION ON NO -BID CONTRACTS AND EARMARKS

S EC .

1608. (a) Notwithstanding any other provision of this Act, none of the funds appropriated or otherwise made

5

available by this Act may be used to make any payment in 6 7

connection with a contract unless the contract is awarded

8

using competitive procedures in accordance with the

9

requirements of section 303 of the Federal Property and

10

Administrative Services Act of 1949 (41 U.S.C. 253), sec-

11

tion 2304 of title 10, United States Code, and the Federal

12 13 14 15

Acquisition Regulation. (b) Notwithstanding any other provision of this Act, none of the funds appropriated or otherwise made available by this Act may be awarded by grant or cooperative agreement unless the process used to award such grant or cooperative agreement uses competitive procedures to select the grantee or award recipient. S EC . 1609. L IMIT ON FUNDS . None of the amounts appropriated or otherwise made available by this Act may be used for any casino or other gambling establishment, aquarium, zoo, golf course, swimming pool, stadium, community park, museum, theater, art center, and highway beautification project. S EC . 1610. H IRING A MERICAN WORKERS IN COMPANIES RE -

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1 2 3 4

CEIVING

TARP FUNDING .

(a) S HORT T ITLE.—This section may be cited as the ‘‘Employ American Workers Act’’.

5

(b) PROHIBITION .— 6

(1) I N GENERAL.—Notwithstanding any other

7 8

provision of law, it shall be unlawful for any recipient

9

of funding under title I of the Emergency Economic

10

Stabilization Act of 2008 (Public Law 110– 343) or

11

section 13 of the Federal Reserve Act (12 U.S.C. 342

12

et seq.) to hire any nonimmigrant described in section 13 14 15

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) D

EFINED TERM .—In

this subsection, the term

‘‘hire’’ means to permit a new employee to commence a period of employment. (c) S UNSET PROVISION .—This section shall be effective during the 2-year period beginning on the date of the

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2 enactment of this Act.

DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER PROVISIONS TITLE I—TAX PROVISIONS SEC. 1000. SHORT TITLE, ETC.

(a) S

HORT

T ITLE.—This title may be cited as the

‘‘American Recovery and Reinvestment Tax Act of 2009’’. (b) R

EFERENCE .—Except

as otherwise expressly pro-

vided, 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) T

ABLE OF C ONTENTS .—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—G ENERAL 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 edu cation expense for section 529 accounts in 2009 and 2010. Sec. 1006. Credit for certain home purchases. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 Sec. 1007. Suspension of tax on portion of unemployment compensation. Sec. 1008. Above-the-line deduction for interest on indebtedness with respect to the purchase of certain motor vehicles. Sec. 1009. Above-the-line deduction for State sales tax and excise tax on the pur chase of certain motor vehicles. PART II—A LTERNATIVE MINIM UM 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—R ENEWABLE ENERGY INCENTIVES Sec. 1101. Extension of credit for electricity produced from certain renewable resources. Sec. 1102. Election of investment credit in lieu of production credit. Sec. 1103. Repeal of certain limitations on credit for renewable energy property. PART II—I NCREASED 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—E NERGY 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—E NERGY RESEARCH INCENTIVES Sec. 1131. Increased research credit for energy research. PART V—M ODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION Sec. 1141. Application of monitoring requirements to carbon dioxide used as a tertiary injectant. PART VI—P LUG -IN ELECTRIC DRIVE MOTOR VEHICLES Sec. 1151. Modification of credit for qualified plug-in electric motor vehicles.

Subtitle C—Tax Incentives for Business PART I—T EMPORARY INVESTMENT INCENTIVES Sec. 1201. Special allowance for certain property acquired during 2009. Sec. 1202. Temporary increase in limitations on expensing of certain depreciable

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2 business assets. PART II—5-Y EAR CARRYBACK OF OPERATING LOSSES Sec. 1211. 5-year carryback of operating losses. Sec. 1212. Exception for TARP recipients. PART III—I NCENTIVES FOR NEW JOBS Sec. 1221. Incentives to hire unemployed veterans and disconnected youth. PART IV—C ANCELLATION OF INDEBTEDNESS Sec. 1231. Deferral and ratable inclusion of income arising from indebtedness discharged by the repurchase of a debt instrument. PART V—Q UALIFIED SMALL BUSINESS STOCK Sec. 1241. Special rules applicable to qualified small business stock for 2009 and 2010. PART VI—P ARITY FOR TRANSPORTATION FRINGE BENEFITS Sec. 1251. Increased exclusion amount for commuter transit benefits and transit passes. PART VII—S C ORPORATIONS Sec. 1261. Temporary reduction in recognition period for built-in gains tax. PART VIII—B ROADBAND INCENTIVES Sec. 1271. Broadband Internet access tax credit. PART IX—C LARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT -IN LOSSES FOLLOWING AN OWNERSHIP CHANGE Sec. 1281. Clarification of regulations related to limitations on certain built-in losses following an ownership change. Subtitle D—Manufacturing Recovery Provisions Sec. 1301. Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302. Credit for investment in advanced energy facilities. Subtitle E—Economic Recovery Tools Sec. 1401. Recovery zone bonds. Sec. 1402. Tribal economic development bonds. Sec. 1403. Modifications to new markets tax credit. Subtitle F—Infrastructure Financing Tools PART I—I MPROVED MARKETABILITY FOR TAX -EXEMPT BONDS HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4 5 6 7

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—D ELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS Sec. 1511. Delay in application of withholding tax on government contractors.

8 9 10

PART III—T AX CREDIT BONDS FOR SCHOOLS Sec. 1521. Qualified school construction bonds. Sec. 1522. Extension and expansion of qualified zone academy bonds. PART IV—B UILD AMERICA BONDS

11 12 13 14

Sec. 1531. Build America bonds. Subtitle G—Economic Recovery Payments to Certain Individuals Sec. 1601. Economic recovery payment to recipients of Social Security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits.

15

Subtitle H—Trade Adjustment Assistance Sec. 1701. Temporary extension of Trade Adjustment Assistance program. Subtitle I—Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 Sec. 1801. Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. Subtitle J—Other Provisions Sec. 1901. Application of certain labor standards to projects financed with certain tax-favored bonds. Sec. 1902. Increase in public debt limit. Sec. 1903. Election to accelerate the low-income housing tax credit.

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2

1

Subtitle A—Tax Relief for

2 3

Individuals and Families

4 PART I—GENERAL TAX RELIEF

5

SEC. 1001. MAKING WORK PAY CREDIT.

6 7

(a) IN G ENERAL.—Subpart C of part IV of subchapter

8

A of chapter 1 is amended by inserting after section 36 the

9

following new section:

10 11

‘‘SEC. 36A. MAKING WORK PAY CREDIT.

‘‘(a) A LLOWANCE OF C REDIT .—In the case of an eligible

12

individual, there shall be allowed as a credit against the 13 14 15

tax imposed by this subtitle for the taxable year an amount equal to the lesser of— ‘‘(1) 6.2 percent of earned income of the taxpayer, or ‘‘(2) $500 ($1,000 in the case of a joint return). ‘‘(b) L

IMITATION

B ASED ON M ODIFIED A DJUSTED G ROSS

INCOME.— ‘‘(1) I N GENERAL.—The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 4 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $70,000 ($140,000 in HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the case of a joint return).

3 4

‘‘(2) M

ODIFIED ADJUSTED GROSS INCOME .—For

purposes of subparagraph (A), the term ‘modified ad-

5

justed gross income’ means the adjusted gross income 6 7

of the taxpayer for the taxable year increased by any

8

amount excluded from gross income under section

9

911, 931, or 933.

10 11

‘‘(c) R

EDUCTION FOR

C ERTAIN O THER PAYMENTS .— The

credit allowed under subsection (a) for any taxable year

12 13 14 15

shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 1601 of the American Recovery and Reinvestment Tax Act of 2009. ‘‘(d) D EFINITIONS .—For purposes of this section— ‘‘(1) E

LIGIBLE INDIVIDUAL .—The

term ‘eligible

individual’ means any individual other than— ‘‘(A) any nonresident alien individual, ‘‘(B) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and ‘‘(C) an estate or trust. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Such term shall not include any individual unless the

3

requirements of section 32(c)(1)(E) are met with re-

4

spect to such individual.

5

‘‘(2) E

6 7 8

ARNED INCOME .—The

term ‘earned in-

come’ has the meaning given such term by section 32(c)(2), except that such term shall not include net

9

earnings from self-employment which are not taken 10 11

into account in computing taxable income. For pur-

12

poses of the preceding sentence, any amount excluded

13

from gross income by reason of section 112 shall be

14

treated as earned income which is taken into account

15

in computing taxable income for the taxable year. ‘‘(e) T

ERMINATION .—This

section shall not apply to

taxable years beginning after December 31, 2010.’’. (b) T REATMENT OF POSSESSIONS .— (1) PAYMENTS TO POSSESSIONS .— (A) M

IRROR CODE POSSESSION .—The

Sec-

retary 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 deterHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

mined by the Secretary of the Treasury based on

3

information provided by the government of the

4

respective possession.

5

(B) O

THER POSSESSIONS .—The

Secretary of

6

the Treasury shall pay to each possession of the

7 8

United States which does not have a mirror code

9

tax system amounts estimated by the Secretary of

10

the Treasury as being equal to the aggregate

11

benefits that would have been provided to

12

residents of such possession by reason of the

13

amendments made by this section for taxable

14

years beginning in 2009 and 2010 if a mirror

15

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) C

OORDINATION WITH CREDIT ALLOWED AGAINST

UNITED STATES INCOME TAXES .—No

credit shall be

allowed against United States income taxes for any HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

taxable year under section 36A of the Internal

3

Revenue Code of 1986 (as added by this section) to

4

any person—

5

(A) to whom a credit is allowed against 6

taxes imposed by the possession by reason of the

7 8

amendments made by this section for such tax-

9

able year, or

10

(B) who is eligible for a payment under a

11

plan described in paragraph (1)(B) with respect

12

to such taxable year.

13

(3) D EFINITIONS AND SPECIAL RULES .—

14

(A) POSSESSION OF THE UNITED STATES .— For

15

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) M

IRROR 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

of the United States as if such possession were

3

the United States.

4

(C) T

REATMENT OF PAYMENTS .—For

purposes

5

of section 1324(b)(2) of title 31, United States 6

Code, the payments under this subsection shall

7 8

be treated in the same manner as a refund due

9

from the credit allowed under section 36A of the

10

Internal Revenue Code of 1986 (as added by this

11

section).

12 13 14 15

(c) R

EFUNDS

D ISREGARDED IN THE A DMINISTRATION OF

FEDERAL PROGRAMS AND FEDERALLY A SSISTED PRO GRAMS .—Any

credit or refund allowed or made to any indi-

vidual 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 (d) A

UTHORITY R ELATING TO

C LERICAL E RRORS .—

Section 6213(g)(2) is amended by striking ‘‘and’’ at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: ‘‘(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct TIN required under section 36A(d)(1).’’. (e) C ONFORMING A MENDMENTS .— (1) Section 6211(b)(4)(A) is amended by inserting ‘‘36A,’’ after ‘‘36,’’.

1(2) Section 1324(b)(2) of title 31, United States 2Code, is amended by inserting ‘‘36A,’’ after ‘‘36,’’. 3(3) The table of sections for subpart C of part IV 4of subchapter A of chapter 1 is amended by inserting 5after the item relating to section 36 the following new 6

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

7(f) E

FFECTIVE

D ATE .—This section, and the amend

8 ments made by this section, shall apply to taxable years 9 beginning after December 31, 2008. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

10

SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX

11

CREDIT.

4

12(a) I N G ENERAL.—Subsection (b) of section 32 is

5

13 amended by adding at the end the following new paragraph:

6

14‘‘(3) S PECIAL RULES FOR 2009 AND 2010 .—In the

7

15case of any taxable year beginning in 2009 or 2010—

8

16‘‘(A) I NCREASED CREDIT PERCENTAGE FOR 9

17 3 OR MORE QUALIFYING CHILDREN .—In the case

10

18of a taxpayer with 3 or more qualifying chil

11

19dren, the credit percentage is 45 percent.

12 13

20‘‘(B) R EDUCTION OF MARRIAGE PENALTY.—

14

21‘‘(i) I N GENERAL.—The dollar amount

15

22in effect under paragraph (2)(B) shall be 23

$5,000. 24‘‘(ii) I NFLATION ADJUSTMENT .—In the 25case 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 HR 1 PP

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2

1 2

year 2008’ for ‘calendar year 1992’ in

3

subparagraph (B) thereof. ‘‘(iii) R

4

OUNDING .—Subparagraph

(A) of subsection

5

(j)(2) shall apply after taking into account 6

any increase under clause (ii).’’.

7 8 9 10 11

(b) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE POR

12 TION OF CHILD CREDIT.

13 14 15

(a) I N G ENERAL.—Paragraph (4) of section 24(d) is amended to read as follows: ‘‘(4) S

PECIAL RULE FOR 2009 AND 2010 .—Not-

withstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $8,100.’’. (b) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

(a) I N G ENERAL.—Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

(i) as subsection (j) and by inserting after subsection (h)

3

the following new subsection:

4

‘‘(i) A

MERICAN

O PPORTUNITY T AX C REDIT .—In the case

5

of any taxable year beginning in 2009 or 2010— 6 7

‘‘(1) I NCREASE IN CREDIT .—The Hope Scholarship

8

Credit shall be an amount equal to the sum of— ‘‘(A)

9

100 percent of so much of the qualified tuition and

10

related expenses paid by the taxpayer during the

11

taxable year (for education furnished to the eligible

12 13

student during any academic period beginning in such taxable year) as does not exceed $2,000, plus

14

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

15

exceeds $2,000 but does not exceed $4,000. ‘‘(2) C

REDIT 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) Q

UALIFIED 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

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

respect to the Hope Scholarship Credit, such credit

3

(determined without regard to this paragraph) shall

4

be reduced (but not below zero) by the amount which

5

bears the same ratio to such credit (as so determined) 6 7

as— ‘‘(A) the excess of—

8

‘‘(i) the taxpayer’s modified adjusted

9 10

gross income (as defined in subsection

11

(d)(3)) for such taxable year, over

12

‘‘(ii) $80,000 ($160,000 in the case of 13

a joint return), bears to ‘‘(B) $10,000 ($20,000

14

in the case of a joint return).

15

‘‘(5) C

REDIT 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 secHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tions 23, 25D, and 30D) and section 27 for the

3

taxable year.

4

Any reference in this section or section 24, 25, 26,

5

25B, 904, or 1400C to a credit allowable under this 6 7

subsection shall be treated as a reference to so much

8

of the credit allowable under subsection (a) as is at-

9

tributable to the Hope Scholarship Credit.

10 11

‘‘(6) PORTION OF CREDIT MADE REFUNDABLE.— 30 percent of so much of the credit allowed under sub-

12 13 14 15

section (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) C

OORDINATION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

application of this subsection to such taxpayer for

3

such taxable year.’’.

4

(b) C ONFORMING A MENDMENTS .—

5

(1) Section 24(b)(3)(B) is amended by inserting

6 7

‘‘25A(i),’’ after ‘‘23,’’. (2) Section 25(e)(1)(C)(ii) is amended by insert-

8 9

ing ‘‘25A(i),’’ after ‘‘24,’’.

10 11

(3) Section 26(a)(1) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’.

12

(4) Section 25B(g)(2) is amended by inserting 13 14

‘‘25A(i),’’ after ‘‘23,’’. (5) Section 904(i) is amended by

15

inserting ‘‘25A(i),’’ after ‘‘24,’’. (6) Section 1400C(d)(2) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (7) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘‘25A,’’ before ‘‘35’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (d) A PPLICATION OF EGTRRA S UNSET .—The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

2001 in the same manner as the provision of such Act to

3

which such amendment relates.

4

(e) T

REASURY S TUDIES

R EGARDING E DUCATION IN -

5 CENTIVES .—

6

(1) S

7

TUDY REGARDING COORDINATION WITH NON -TAX

8

EDUCATIONAL INCENTIVES .—The

9

Treasury, or the Secretary’s delegate, shall study how

10 11

Secretary of the

to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal

12 13 14

Pell Grant program under section 401 of the Higher Education Act of 1965. (2) S

15

TUDY REGARDING IMPOSITION OF COMMUNITY

SERVICE REQUIREMENTS .—The

Secretary of the

Treasury, or the Secretary’s delegate, shall study the feasibility of requiring students to perform community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) R

EPORT .—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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT AL

3

LOWED AS A QUALIFIED HIGHER EDUCATION

4

EXPENSE FOR SECTION 529 ACCOUNTS IN

5 6

2009 AND 2010.

(a) IN G ENERAL.—Section 529(e)(3)(A) is amended by

7

striking ‘‘and’’ at the end of clause (i), by striking the pe8 9 10

riod at the end of clause (ii), and by adding at the end the following:

11

‘‘(iii) expenses paid or incurred in

12

2009 or 2010 for the purchase of any com-

13

puter technology or equipment (as defined

14

in section 170(e)(6)(F)(i)) or Internet access

15

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 hob

bies unless the software is predominantly educational in nature.’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(b) E FFECTIVE D ATE .—The amendments made by this

3

section shall apply to expenses paid or incurred after De-

4 5

cember 31, 2008. SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES.

6 7 8 9 10 11

(a) A

A of part IV of

subchapter A of chapter 1 is amended by inserting after section 25D the following new section: ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

‘‘(a) A LLOWANCE OF C REDIT .—

12 13

LLOWANCE OF C REDIT .—Subpart

‘‘(1) IN GENERAL.—In the case of an individual who is a purchaser of a principal residence during

14 15

the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence. ‘‘(2) D

OLLAR LIMITATION .—The

amount of the

credit allowed under paragraph (1) shall not exceed $15,000. ‘‘(3) A

LLOCATION OF CREDIT AMOUNT .—At

the

election of the taxpayer, the amount of the credit allowed under paragraph (1) (after application of paragraph (2)) may be equally divided among the 2 taxable years beginning with the taxable year in HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

which the purchase of the principal residence is made.

3

‘‘(b) L IMITATIONS .—

4

‘‘(1) D

ATE OF PURCHASE .—The

credit allowed

5

under subsection (a) shall be allowed only with re6 7

spect to purchases made— ‘‘(A) after the date of the enactment of the

8 9

American Recovery and Reinvestment Tax Act of

10

2009, and

11

‘‘(B) on or before the date that is 1

12

year after such date of enactment.

13

‘‘(2) L

14 15

IMITATION BASED ON AMOUNT OF TAX .—

In

the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ‘‘(B) the sum of the credits allowable under this subpart (other than this section) for the taxable year. ‘‘(3) O NE-TIME ONLY.— ‘‘(A) I N GENERAL.—If a credit is allowed HR 1 PP

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2

1 2

under this section in the case of any individual

3

(and such individual’s spouse, if married) with

4

respect to the purchase of any principal resi-

5

dence, no credit shall be allowed under this sec6

tion in any taxable year with respect to the pur-

7 8

chase of any other principal residence by such

9

individual or a spouse of such individual.

10

‘‘(B) J

11

OINT PURCHASE .—In

the case of a

purchase of a principal residence by 2 or more

12

unmarried individuals or by 2 married individ-

13

uals filing separately, no credit shall be allowed

14

under this section if a credit under this section

15

has been allowed to any of such individuals in any taxable year with respect to the purchase of any other principal residence. ‘‘(c) PRINCIPAL R ESIDENCE.—For purposes of this section, the term ‘principal residence’ has the same meaning as when used in section 121. ‘‘(d) D

ENIAL OF D OUBLE

B ENEFIT .—No credit shall be

allowed under this section for any purchase for which a credit is allowed under section 36 or section 1400C. ‘‘(e) S PECIAL R ULES .— ‘‘(1) J OINT PURCHASE .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(A) M

2 3

RATELY.—In

4

ARRIED INDIVIDUALS FILING SEPA -

the case of 2 married individuals

filing separately, subsection (a) shall be applied

5

to each such individual by substituting ‘$7,500’ 6

for ‘$15,000’ in subsection (a)(1).

7

‘‘(B) U

8

NMARRIED INDIVIDUALS .—If

2 or more

9

individuals who are not married purchase a

10

principal residence, the amount of the credit

11

allowed under subsection (a) shall be allocated

12

among such individuals in such manner as the

13

Secretary may prescribe, except that the total

14

amount of the credits allowed to all such individ-

15

uals shall not exceed $15,000. ‘‘(2) P URCHASE .—In defining the purchase of a principal residence, rules similar to the rules of paragraphs (2) and (3) of section 1400C(e) (as in effect on the date of the enactment of this section) shall apply. ‘‘(3) R

EPORTING REQUIREMENT .—Rules

similar to

the rules of section 1400C(f) (as so in effect) shall apply. ‘‘(f) R ECAPTURE OF C REDIT IN THE C ASE OF C ERTAIN D ISPOSITIONS .— ‘‘(1) I N GENERAL.—In the event that a taxHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

payer—

3

‘‘(A) disposes of the principal residence with

4

respect to which a credit was allowed under sub-

5

section (a), or 6

‘‘(B) fails to occupy such residence as the

7 8

taxpayer’s principal residence, at any time within 24

9

months after the date on which the taxpayer

10 11

purchased such residence, then the tax imposed by this chapter for the taxable year during which such

12 13 14 15

disposition occurred or in which the taxpayer failed to occupy the residence as a principal residence shall be increased by the amount of such credit. ‘‘(2) E XCEPTIONS .— ‘‘(A) D EATH OF TAXPAYER.—Paragraph (1) shall not apply to any taxable year ending after the date of the taxpayer’s death. ‘‘(B) I NVOLUNTARY

CONVERSION .—Para-

graph (1) shall not apply in the case of a residence which is compulsorily or involuntarily converted (within the meaning of section 1033(a)) if the taxpayer acquires a new principal residence within the 2-year period beginning on the date of the disposition or cessation referred HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to in such paragraph. Paragraph (1) shall apply

3

to such new principal residence during the

4

remainder of the 24-month period described in

5

such paragraph as if such new principal 6

residence were the converted residence.

7

‘‘(C) T

8 9

RANSFERS BETWEEN SPOUSES OR IN -

CIDENT TO DIVORCE .—In

10

the case of a transfer of a

residence to which section 1041(a) applies— ‘‘(i)

11

paragraph (1) shall not apply to such transfer,

12

and

13

‘‘(ii) in the case of taxable years ending

14

after such transfer, paragraph (1) shall apply to

15

the transferee in the same manner as if such transferee were the transferor (and shall not apply to the transferor). ‘‘(D) R

ELOCATION OF

MEMBERS OF THE ARMED FORCES .—Paragraph

(1)

shall not apply in the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station. ‘‘(3) J OINT RETURNS .—In the case of a credit allowed under subsection (a) with respect to a joint return, half of such credit shall be treated as having HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 been allowed to each individual filing such return for purposes of this subsection. ‘‘(4) R

ETURN REQUIREMENT .—If

the tax imposed

by this chapter for the taxable year is increased under this subsection, the taxpayer shall, notwith

1standing section 6012, be required to file a return 2with respect to the taxes imposed under this subtitle. 3‘‘(g) B

ASIS

A DJUSTMENT .—For purposes of this sub

4 title, if a credit is allowed under this section with respect 5 to the purchase of any residence, the basis of such residence 6 shall be reduced by the amount of the credit so allowed. 7‘‘(h) E

LECTION TO

T REAT PURCHASE IN PRIOR

8 YEAR.—In the case of a purchase of a principal residence 9 during the period described in subsection (b)(1), a taxpayer 10 may elect to treat such purchase as made on December 31, 11 2008, for purposes of this section.’’. 12(b) C LERICAL A MENDMENT .—The table of sections for 13 subpart A of part IV of subchapter A of chapter 1 is amend 14 ed by inserting after the item relating to section 25D the 15 following new item: ‘‘Sec. 25E. Credit for certain home purchases.’’.

16(c) S

UNSET OF C URRENT

FIRST -T IME H OMEBUYER

17 C REDIT .—

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2

1

18(1) IN GENERAL.—Subsection (h) of section 36 is

2 3

19amended by striking ‘‘July 1, 2009’’ and inserting

4 5

20‘‘the date of the enactment of the American Recovery 21

and Reinvestment Tax Act of 2009’’.

6 7

22(2) E

LECTION TO TREAT PURCHASE IN PRIOR

23 YEAR.—Subsection (g) of section 36 is amended by

8 9 10 11 12 13 14

24striking ‘‘July 1, 2009’’ and inserting ‘‘the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009’’. (d) E FFECTIVE D ATE .—The amendments made by this section shall apply to purchases after the date of the enactment of this Act. SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM

15

PLOYMENT COMPENSATION.

(a) IN G ENERAL.—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) S

PECIAL

R ULE 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) E FFECTIVE D ATE .—The amendment made by this section shall apply to taxable years beginning after December 31, 2008. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON INDEBTEDNESS WITH RESPECT TO THE PUR

3 4 5 6

CHASE OF CERTAIN MOTOR VEHICLES.

(a) IN G ENERAL.—Paragraph (2) of section 163(h) of the Internal Revenue Code of 1986 is amended—

7

(1) by striking ‘‘and’’ at the end of

8 9

subparagraph (E), (2) by striking the period at the end of subpara-

10 11

graph (F) and inserting ‘‘, and’’, and

12 13

(3) by adding at the end the following new subparagraph:

14

‘‘(G) any qualified motor vehicle interest

15

(within the meaning of paragraph (5)).’’. (b) Q UALIFIED M OTOR VEHICLE INTEREST .—Section 163(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ‘‘(5) Q

UALIFIED MOTOR VEHICLE INTEREST .—

For

purposes of this subsection— ‘‘(A) I N GENERAL.—The term ‘qualified motor vehicle interest’ means any interest which is paid or accrued during the taxable year on any indebtedness which— ‘‘(i) is incurred after November 12, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

2008, and before January 1, 2010, in ac-

3

quiring any qualified motor vehicle of the

4

taxpayer, and

5

‘‘(ii) is secured by such qualified motor 6

vehicle.

7 8

Such term also includes any indebtedness secured

9

by such qualified motor vehicle resulting from

10

the refinancing of indebtedness meeting the re-

11

quirements of the preceding sentence (or this sen

12

tence); but only to the extent the amount of the

13

indebtedness resulting from such refinancing

14

does not exceed the amount of the refinanced

15

indebtedness. ‘‘(B) D

OLLAR LIMITATION .—The

aggregate

amount of indebtedness treated as described in subparagraph (A) for any period shall not exceed $49,500 ($24,750 in the case of a separate return by a married individual). ‘‘(C) I NCOME LIMITATION .—The amount otherwise treated as interest under subparagraph (A) for any taxable year (after the application of subparagraph (B)) shall be reduced (but not below zero) by the amount which bears the same HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

ratio to the amount which is so treated as—

2 3

‘‘(i) the excess (if any) of—

4

‘‘(I) the taxpayer’s modified ad-

5

justed gross income for such taxable

6

year, over

7 8

‘‘(II) $125,000 ($250,000 in the

9

case of a joint return), bears to ‘‘(ii)

10

$10,000.

11

For purposes of the preceding sentence, the term

12

‘modified adjusted gross income’ means the ad13

justed gross income of the taxpayer for the tax

14

able year increased by any amount excluded

15

from gross income under section 911, 931, or 933. ‘‘(D) Q

UALIFIED MOTOR VEHICLE .—The

term

‘qualified motor vehicle’ means a passenger automobile (within the meaning of section 30B(h)(3)) or a light truck (within the meaning of such section)— ‘‘(i) which is acquired for use by the taxpayer and not for resale after November 12, 2008, and before January 1, 2010, ‘‘(ii) the original use of which HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

commences with the taxpayer, and

2 3

‘‘(iii) which has a gross vehicle weight

4

rating of not more than 8,500 pounds.’’.

5

(c) D EDUCTION A LLOWED A BOVE -THE -L INE.—Section 6 7

62(a) of the Internal Revenue Code of 1986 is amended by

8

inserting after paragraph (21) the following new para-

9

graph:

10 11

‘‘(22) Q

UALIFIED MOTOR VEHICLE INTEREST .—

The

deduction allowed under section 163 by reason of

12 13 14 15

subsection (h)(2)(G) thereof.’’. (d) R

EPORTING OF Q UALIFIED

M OTOR VEHICLE IN -

TEREST .—

(1) I N GENERAL.—Subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ‘‘SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR VEHICLE INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS.

‘‘(a) Q

UALIFIED

M OTOR VEHICLE INTEREST .—Any

person— ‘‘(1) who is engaged in a trade or business, and ‘‘(2) who, in the course of such trade or business, receives HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

from any individual interest aggregating $600 or more for

3

any calendar year on any indebtedness secured by a

4

qualified motor vehicle (as defined in section

5

163(h)(5)(D)), shall make the return described in 6 7

subsection (b) with respect to each individual from whom

8

such interest was received at such time as the Secretary

9

may by regulations prescribe.

10 11

‘‘(b) F ORM AND M ANNER OF R ETURNS .—A return is described in this subsection if such return—

12

‘‘(1) is in such form as the Secretary may

13 14

prescribe, ‘‘(2) contains— ‘‘(A) the name and address of the individual

15

from whom the interest described in subsection (a)(2) was received, ‘‘(B) the amount of such interest received for the calendar year, and ‘‘(C) such other information as the Secretary may prescribe. ‘‘(c) A

PPLICATION TO

G OVERNMENTAL U NITS .—For

purposes of subsection (a)— ‘‘(1) T

REATED AS PERSONS .—The

term ‘person’

includes any governmental unit (and any agency or

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1

2

2

instrumentality thereof).

3 4

‘‘(2) S

PECIAL RULES .—In

the case of a govern-

mental unit or any agency or instrumentality thereof—

5

‘‘(A) subsection (a) shall be applied without 6

regard to the trade or business requirement con-

7

tained therein, and

8 9

‘‘(B) any return required under subsection

10

(a) shall be made by the officer or employee ap-

11

propriately designated for the purpose of making

12

such return.

13 14 15

‘‘(d) S TATEMENTS T O B E FURNISHED TO INDIVIDUALS W ITH R ESPECT TO W HOM INFORMATION IS R EQUIRED .—Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing— ‘‘(1) the name, address, and phone number of the information contact of the person required to make such return, and ‘‘(2) the aggregate amount of interest described in subsection (a)(2) received by the person required to make such return from the individual to whom the statement is required to be furnished. The written statement required under the preceding senHR 1 PP

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1 2

tence shall be furnished on or before January 31 of the

3

year following the calendar year for which the return

4

under subsection (a) was required to be made.

5

‘‘(e) R ETURNS W HICH W OULD B E R EQUIRED T O B E M ADE 6 7

BY 2 OR

M ORE PERSONS .—Except to the extent provided in

8

regulations prescribed by the Secretary, in the case of

9

interest received by any person on behalf of another per-

10

son, only the person first receiving such interest shall be

11

required to make the return under subsection (a).’’.

12

(2) A MENDMENTS RELATING TO PENALTIES .—

13

(A) Section 6721(e)(2)(A) of such Code is

14

amended by striking ‘‘or 6050L’’ and inserting

15

‘‘6050L, or 6050X’’. (B) Section 6722(c)(1)(A) of such Code is amended by striking ‘‘or 6050L(c)’’ and inserting ‘‘6050L(c), or 6050X(d)’’. (C) Subparagraph (B) of section 6724(d)(1) of such Code is amended by redesignating clauses (xvi) through (xxii) as clauses (xvii) through (xxiii), respectively, and by inserting after clause (xii) the following new clause: ‘‘(xvi) section 6050X (relating to re-

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1 2

turns relating to qualified motor vehicle in-

3

terest received in trade or business from in-

4

dividuals),’’.

5

(D) Paragraph (2) of section 6724(d) of 6

such Code is amended by striking the period at

7 8

the end of subparagraph (DD) and inserting ‘‘,

9

or’’ and by inserting after subparagraph (DD)

10

the following new subparagraph:

11

‘‘(EE) section 6050X(d) (relating to returns

12

relating to qualified motor vehicle interest re-

13

ceived in trade or business from individuals).’’.

14

(3) C

15

LERICAL AMENDMENT .—The

table of sections

for subpart B of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6050W the following new item: ‘‘Sec. 6050X. Returns relating to qualified motor vehicle interest received in trade or business from individuals.’’.

(e) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1009. ABOVE-THE-LINE DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES.

(a) IN G ENERAL.—Subsection (a) of section 164 of the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Internal Revenue Code of 1986 is amended by inserting

3

after paragraph (5) the following new paragraph:

4 5

‘‘(6) Qualified motor vehicle taxes.’’. (b) Q

UALIFIED

M OTOR VEHICLE T AXES .—Subsection (b)

6 7

of section 164 of the Internal Revenue Code of 1986 is

8

amended by adding at the end the following new

9

paragraph:

10

‘‘(6) Q UALIFIED MOTOR VEHICLE TAXES .—

11

‘‘(A) I N GENERAL.—For purposes of this

12

section, the term ‘qualified motor vehicle taxes’

13

means any State or local sales or excise tax im-

14

posed on the purchase of a qualified motor vehi-

15

cle (as defined in section 163(h)(5)(D)). ‘‘(B) D

OLLAR LIMITATION .—The

amount

taken into account under subparagraph (A) for any taxable year shall not exceed $49,500 ($24,750 in the case of a separate return by a married individual). ‘‘(C) I NCOME 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

ratio to the amount which is so treated as—

2 3

‘‘(i) the excess (if any) of—

4

‘‘(I) the taxpayer’s modified ad-

5

justed gross income for such taxable

6

year, over

7 8

‘‘(II) $125,000 ($250,000 in the

9

case of a joint return), bears to ‘‘(ii)

10

$10,000.

11

For purposes of the preceding sentence, the term

12

‘modified adjusted gross income’ means the ad13

justed gross income of the taxpayer for the tax-

14

able year increased by any amount excluded

15

from gross income under section 911, 931, or 933. ‘‘(D) Q

UALIFIED MOTOR VEHICLE TAXES NOT

INCLUDED IN COST OF ACQUIRED PROPERTY.—The

last sentence of subsection (a) shall not apply to any qualified motor vehicle taxes. ‘‘(E) C TAX .—This

OORDINATION WITH GENERAL SALES

paragraph shall not apply in the case

of a taxpayer who makes an election under paragraph (5) for the taxable year.’’. (c) C

ONFORMING

A MENDMENTS .—Paragraph (5) of

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1

2

2

section 163(h) of the Internal Revenue Code of 1986, as

3

added by section 1, is amended—

4

(1) by adding at the end the following new sub-

5

paragraph: 6

‘‘(E) E

7

XCLUSION .—If

the indebtedness de-

8

scribed in subparagraph (A) includes the

9

amounts of any State or local sales or excise

10

taxes paid or accrued by the taxpayer in connec-

11

tion with the acquisition of a qualified motor ve-

12

hicle, the aggregate amount of such indebtedness

13

taken into account under such subparagraph

14

shall be reduced, but not below zero, by the

15

amount of any such taxes for which a deduction is allowed under section 164(a) by reason of paragraph (6) thereof.’’, and (2) by inserting ‘‘, after the application of subparagraph (E),’’ after ‘‘for any period’’ in subparagraph (B). (d) D EDUCTION A LLOWED A BOVE -THE -L INE.—Section 62(a) of the Internal Revenue Code of 1986, as amended by section 1, is amended by inserting after paragraph (22) the following new paragraph: ‘‘(23) Q

UALIFIED MOTOR VEHICLE TAXES .—The

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1 2

deduction allowed under section 164 by reason of sub-

3

section (a)(6) thereof.’’.

4

(e) E FFECTIVE D ATE .—The amendments made by this

5

section shall apply to taxable years beginning after Decem6 7 8

ber 31, 2008. PART II—ALTERNATIVE MINIMUM TAX RELIEF

9

SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RE

10

LIEFFORNONREFUNDABLEPERSONAL

11 12 13

CREDITS.

(a) IN G ENERAL.—Paragraph (2) of section 26(a) (relating to special rule for taxable years 2000 through 2008)

14 15

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) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MIN IMUM TAX EXEMPTION AMOUNT.

(a) IN G ENERAL.—Paragraph (1) of section 55(d) (relating to exemption amount) is amended—

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2

1 2

(1) by striking ‘‘($69,950 in the case of taxable

3

years beginning in 2008)’’ in subparagraph (A) and

4

inserting ‘‘($70,950 in the case of taxable years begin-

5

ning in 2009)’’, and 6

(2) by striking ‘‘($46,200 in the case of taxable

7 8

years beginning in 2008)’’ in subparagraph (B) and

9

inserting ‘‘($46,700 in the case of taxable years begin-

10 11

ning in 2009)’’. (b) E FFECTIVE D ATE .—The amendments made by this

12 13 14 15

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 PRO DUCED FROM CERTAIN RENEWABLE RE SOURCES.

(a) I N G ENERAL.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

(3) by striking ‘‘2012’’ in paragraph

3 4

(11)(B) and inserting ‘‘2014’’. (b) T

ECHNICAL

A MENDMENT .—Paragraph (5) of section

5

45(d) is amended by striking ‘‘and before’’ and all that 6 7 8

follows and inserting ‘‘ and before October 3, 2008.’’. (c) E FFECTIVE D ATE .— (1) I

9 10 11

N GENERAL .—The

amendments made by

subsection (a) shall apply to property placed in service after the date of the enactment of this Act.

12

(2) T

ECHNICAL AMENDMENT .—The

amendment

13 14 15

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) I N G ENERAL.—Subsection (a) of section 48 is amended by adding at the end the following new paragraph: ‘‘(5) E LECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY.—

‘‘(A) I N GENERAL.—In the case of any qualified investment credit facility— ‘‘(i) such facility shall be treated as enHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ergy property for purposes of this section,

3

and

4

‘‘(ii) the energy percentage with

5

respect to such property shall be 30 6

percent.

7

‘‘(B) D ENIAL OF PRODUCTION CREDIT .—No

8 9

credit shall be allowed under section 45 for any

10

taxable year with respect to any qualified invest-

11

ment credit facility.

12 13 14

‘‘(C) Q

UALIFIED INVESTMENT CREDIT FA -

CILITY.—For

purposes of this paragraph, the

term ‘qualified investment credit facility’ means

15

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) W

IND FACILITIES .—Any

facility

described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012. ‘‘(ii) O THER FACILITIES .—Any facility described in paragraph (2), (3), (4), (6), (7), HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(9), or (11) of section 45(d) if such fa

3

cility is placed in service in

4

2009, 2010, 2011, 2012, or 2013.’’.

5

(b) E FFECTIVE D ATE .—The amendments made by this 6 7 8 9

section shall apply to facilities placed in service after December 31, 2008. SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT

10 11 12

FOR RENEWABLE ENERGY PROPERTY.

(a) R

EPEAL OF L IMITATION ON

C REDIT FOR Q UALIFIED

S MALL W IND E NERGY PROPERTY.—Paragraph (4) of section

13 14 15

48(c) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) R EPEAL OF L IMITATION ON PROPERTY FINANCED BY S UBSIDIZED E NERGY FINANCING .— (1) I N GENERAL.—Section 48(a)(4) is amended by adding at the end the following new subparagraph: ‘‘(D) T

ERMINATION .—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).’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) C ONFORMING AMENDMENTS .—

2 3

(A) Section 25C(e)(1) is amended by striking

4

‘‘(8), and (9)’’ and inserting ‘‘and (8)’’.

5

(B) Section 25D(e) is amended by striking

6 7

paragraph (9).

8

(C) Section 48A(b)(2) is amended by insert-

9

ing ‘‘(without regard to subparagraph (D) there-

10

of)’’ after ‘‘section 48(a)(4)’’.

11

(D) Section 48B(b)(2) is amended by in-

12 13

serting ‘‘(without regard to subparagraph (D)

14

thereof)’’ after ‘‘section 48(a)(4)’’.

15

(c) E FFECTIVE D ATE .— (1) I N 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) C

ONFORMING AMENDMENTS .—The

amendments

made by subsection (b)(2) shall apply to taxable years beginning after December 31, 2008.

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1 2

PART II—INCREASED ALLOCATIONS OF NEW

3

CLEAN RENEWABLE ENERGY BONDS AND

4

QUALIFIED ENERGY CONSERVATION BONDS

5 SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW

6 CLEAN RENEWABLE ENERGY BONDS.

7 8 9

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

10 11 12

‘‘(4) A

DDITIONAL LIMITATION .—The

national new

clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be

13 14 15

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) I N G ENERAL.—Section 54D(d) is amended by striking ‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. (b) C

LARIFICATION

W ITH R ESPECT TO G REEN C OMMUNITY

PROGRAMS .—Clause (ii) of section 54D(f)(1)(A) is amended by inserting ‘‘(including the use of loans, grants, or other repayment mechanisms to implement such programs)’’ after ‘‘green community programs’’.

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1 2

PART III—ENERGY CONSERVATION INCENTIVES

3

SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR

4

NONBUSINESS ENERGY PROPERTY.

5 6

(a) IN G ENERAL.—Section 25C is amended by striking subsections (a) and (b) and inserting the following new

7 8 9

subsections: ‘‘(a) A LLOWANCE OF C REDIT .—In the case of an indi-

10

vidual, there shall be allowed as a credit against the tax

11

imposed by this chapter for the taxable year an amount

12

equal to 30 percent of the sum of—

13

‘‘(1) the amount paid or incurred by the taxpayer 14 15

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) L IMITATION .—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) M ODIFICATIONS OF S TANDARDS FOR E NERGY-E FFICIENT

B UILDING PROPERTY.— (1) E LECTRIC HEAT PUMPS .—Subparagraph (B) of

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2

1

section 25C(d)(3) is amended to read as follows:

2 3

‘‘(B) an electric heat pump which achieves

4

the highest efficiency tier established by the Con

5

sortium for Energy Efficiency, as in 6

effect on January 1, 2009.’’.

7

(2) C

8 9

ENTRAL AIR CONDITIONERS .—Subparagraph

(C) of section 25C(d)(3) is amended by striking

10

‘‘2006’’ and inserting ‘‘2009’’.

11

(3) W

ATER HEATERS .—Subparagraph

(D) of

12

section 25C(d)(3) is amended to read as follows:

13

‘‘(E) a natural gas, propane, or oil water

14

heater which has either an energy factor of at

15

least 0.82 or a thermal efficiency of at least 90 percent.’’. (4) W

OOD STOVES .—Subparagraph

(E) of section

25C(d)(3) is amended by inserting ‘‘, as measured using a lower heating value’’ after ‘‘75 percent’’. (c) M AND

ODIFICATIONS OF S TANDARDS FOR

O IL FURNACES

H OT W ATER B OILERS .— (1) I N GENERAL.—Paragraph (4) of section 25C(d) is amended to read as follows: ‘‘(4) Q

UALIFIED NATURAL GAS , PROPANE , AND OIL

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1

‘‘(A) Q UALIFIED NATURAL GAS FURNACE.—

2 3

The term ‘qualified natural gas furnace’ means

4

any natural gas furnace which achieves an an-

5

nual fuel utilization efficiency rate of not less 6

than 95.

7

‘‘(B) Q

8 9

UALIFIED NATURAL GAS HOT WATER

BOILER .—The

10

term ‘qualified natural gas hot

water boiler’ means any natural gas hot water

11

boiler which achieves an annual fuel utilization

12

efficiency rate of not less than 90.

13

‘‘(C) Q

14

UALIFIED PROPANE FURNACE .—The

term ‘qualified propane furnace’ means any pro-

15

pane furnace which achieves an annual fuel utilization efficiency rate of not less than 95. ‘‘(D) Q BOILER .—The

UALIFIED PROPANE HOT WATER

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) Q UALIFIED OIL FURNACES .—The term ‘qualified oil furnace’ means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(F) Q UALIFIED OIL HOT WATER BOILER .— The

2 3

term ‘qualified oil hot water boiler’ means any

4

oil hot water boiler which achieves an annual fuel

5

utilization efficiency rate of not less than 90.’’. 6

(2) C

7 8

ONFORMING AMENDMENT .—Clause

(ii) of

section 25C(d)(2)(A) is amended to read as follows:

9

‘‘(ii) any qualified natural gas furnace,

10

qualified propane furnace, qualified oil

11

furnace, qualified natural gas hot water

12

boiler, qualified propane hot water boiler,

13

or qualified oil hot water boiler, or’’.

14 15

(d) M

ODIFICATIONS OF S TANDARDS FOR

Q UALIFIED

E NERGY E FFICIENCY IMPROVEMENTS .— (1) Q

UALIFICATIONS FOR EXTERIOR WINDOWS ,

DOORS , AND SKYLIGHTS .—Subsection

(c) of section 25C

is amended by adding at the end the following new paragraph: ‘‘(4) Q

UALIFICATIONS 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) A

DDITIONAL QUALIFICATION FOR INSULA -

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2

1 2

TION .—Subparagraph

3

amended by inserting ‘‘and meets the prescriptive cri-

4

(A) of section 25C(c)(2) is

teria for such material or system established by the

5

2009 International Energy Conservation Code, as 6 7

such Code (including supplements) is in effect on the

8

date of the enactment of the American Recovery and

9

Reinvestment Tax Act of 2009’’ after ‘‘such dwelling

10 11

unit’’. (e) E

XTENSION .—Section

25C(g)(2) is amended by

12 13 14 15

striking ‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. (f) E FFECTIVE D ATES .— (1) I N GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2008. (2) E

FFICIENCY STANDARDS .—The

amendments

made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after December 31, 2009. SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

(a) R EMOVAL OF C REDIT L IMITATION FOR PROPERTY HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

PLACED IN S ERVICE.—

3 4

(1) I N GENERAL.—Paragraph (1) of section 25D(b) is amended to read as follows:

5

‘‘(1) M

AXIMUM CREDIT FOR FUEL CELLS .—In

the

6 7

case of any qualified fuel cell property expenditure,

8

the credit allowed under subsection (a) (determined

9

without regard to subsection (c)) for any taxable year

10

shall not exceed $500 with respect to each

11

half kilowatt of capacity of the qualified

12 13 14

fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.’’. (2) C

15

ONFORMING AMENDMENT .—Paragraph

(4) of

section 25D(e) is amended— (A) by striking all that precedes subparagraph (B) and inserting the following: ‘‘(4) F UEL 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) M

AXIMUM EXPENDITURES FOR FUEL

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2

1 2

CELLS .—The

3

tures which may be taken into account under

4

maximum amount of such expendi-

subsection (a) by all such individuals with respect

5

to such dwelling unit during such calendar year 6

shall be $1,667 in the case of each half kilowatt

7 8

of capacity of qualified fuel cell property (as

9

defined in section 48(c)(1)) with respect to which

10 11 12 13 14

such expenditures relate.’’, and (B) by striking subparagraph (C). (b) E FFECTIVE D ATE .—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

15 SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER NATIVE FUEL VEHICLE REFUELING PROP ERTY.

(a) IN G ENERAL.—Section 30C(e) is amended by adding at the end the following new paragraph: ‘‘(6) S

PECIAL 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—

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2

1 2

‘‘(i) subsection (a) shall be applied by

3

substituting ‘50 percent’ for ‘30 percent’, ‘‘(ii)

4

subsection (b)(1) shall be applied by substituting

5

‘$50,000’ for ‘$30,000’, and ‘‘(iii) subsection 6

(b)(2) shall be applied by substituting ‘$2,000’

7 8

for ‘$1,000’, and ‘‘(B) in the case of any such

9

property which relates to hydrogen, subsection

10

(b)(1) shall be applied by substituting ‘$200,000’

11

for ‘$30,000’.’’.

12 13 14 15

(b) E

NSURING

C ONSUMER A CCESSIBILITY TO A LTERNATIVE

FUEL VEHICLE R EFUELING PROPERTY IN THE C ASE OF E LECTRICITY.—Section 179(d)(3) is amended by striking subparagraph (B) and inserting the following: ‘‘(B) for the recharging of motor vehicles propelled by electricity, but only if— ‘‘(i) the property complies with the Society of Automotive Engineers’ connection standards, ‘‘(ii) the property provides for non-restrictive access for charging and for payment interoperability with other systems, and HR 1 PP

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2

1

‘‘(iii) the property—

2 3

‘‘(I) is located on property owned

4

by the taxpayer, or

5

‘‘(II) is located on property owned

6

by another person, is placed in service

7 8

with the permission of such other per-

9

son, and is fully maintained by the

10 11

taxpayer.’’. (c) E FFECTIVE D ATE .—The amendments made by this

12

section shall apply to taxable years beginning after Decem13 14 15

ber 31, 2008. SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS.

(a) T EMPORARY 5-YEAR R ECOVERY PERIOD .— (1) I N GENERAL.—Subparagraph (B) of section 168(e)(3) is amended by striking ‘‘and’’ at the end of clause (vi), by striking the period at the end of clause (vii) and inserting ‘‘, and’’, and by adding at the end the following new clause: ‘‘(viii) any qualified smart electric meter which is placed in service before January 1, 2011.’’. (2) C

ONFORMING AMENDMENT .—Clause

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(iii) of

2

1 2

section 168(e)(3)(D) is amended by inserting ‘‘which

3

is placed in service after December 31, 2010’’ after

4

‘‘electric meter’’.

5

(b) T

ECHNICAL

A MENDMENTS .—Paragraphs

6 7 8

(18)(A)(ii) and (19)(A)(ii) of section 168(i) are each amended by striking ‘‘16 years’’ and inserting ‘‘10 years’’.

9 10

(c) E FFECTIVE D ATES .—

11

(1) I N GENERAL.—Except as provided in para-

12

graph (2), the amendments made by this section shall 13 14 15

apply to property placed in service after the date of the enactment of this Act. (2) T

ECHNICAL AMENDMENT .—The

amendments

made by subsection (b) shall take effect as if included in section 306 of the Energy Improvement and Extension Act of 2008. PART IV—ENERGY RESEARCH INCENTIVES SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE SEARCH.

(a) IN G ENERAL.—Section 41 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: ‘‘(h) E NERGY R ESEARCH C REDIT .—In the case of any HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

taxable year beginning in 2009 or 2010—

3 4

‘‘(1) IN GENERAL.—The credit determined under subsection (a)(1) shall be increased by 20 percent of

5

the qualified energy research expenses for the taxable 6 7

year. ‘‘(2) Q

8 9

UALIFIED

PENSES .—For

10

ENERGY

RESEARCH

EX -

purposes of this subsection—

‘‘(A) IN GENERAL.—The term ‘qualified en-

11

ergy research expenses’ means so much of the

12

taxpayer’s qualified research expenses as are re-

13

lated to the fields of fuel cells and battery tech-

14

nology, renewable energy and renewable fuels,

15

energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration. ‘‘(B) C

OORDINATION WITH QUALIFYING AD -

VANCED ENERGY PROJECT CREDIT .—Such

term shall

not include expenditures taken into account in determining the amount of the credit under section 48 or 48C. ‘‘(3) C

OORDINATION WITH OTHER RESEARCH

CREDITS .—

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2

1 2

energy research expenses taken into account

3

under subsection (a)(1)(A) shall not exceed the

4

base amount.

5

‘‘(B) A

LTERNATIVE SIMPLIFIED CREDIT .—

For

6

purposes of subsection (c)(5), the amount of

7 8

qualified energy research expenses taken into ac-

9

count for the taxable year for which the credit is

10

being determined shall not exceed—

11

‘‘(i) in the case of subsection (c)(5)(A),

12

50 percent of the average qualified research

13

expenses for the 3 taxable years preceding

14

the taxable year for which the credit is

15

being determined, and ‘‘(ii) in the case of subsection (c)(5)(B)(ii), zero. ‘‘(C) B

ASIC RESEARCH AND ENERGY RESEARCH

CONSORTIUM PAYMENTS .—Any

amount taken into

account under paragraph (1) shall not be taken into account under paragraph (2) or (3) of subsection (a).’’. (b) C ONFORMING A MENDMENT .—Subparagraph (B) of section 41(i)(1)(B), as redesignated by subsection (a), is amended by inserting ‘‘(in the case of the increase in the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

credit determined under subsection (h), December 31,

3

2010)’’ after ‘‘December 31, 2009’’.

4

(c) E FFECTIVE D ATE .—The amendments made by this

5

section shall apply to taxable years beginning after Decem6 7

ber 31, 2008.

8

PART V—MODIFICATION OF CREDIT FOR CARBON

9

DIOXIDE SEQUESTRATION

10

SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS

11

TO CARBON DIOXIDE USED AS A TERTIARY

12

INJECTANT.

13

(a) I N G ENERAL.—Section 45Q(a)(2) is amended by 14 15

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) C ONFORMING A MENDMENTS .— (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’’ HR 1 PP

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2

1 2

and inserting ‘‘, oil and gas reservoirs, and

3

unminable coal seams’’, and

4

(C) by inserting ‘‘the Secretary of Energy,

5

and the Secretary of the Interior,’’ after ‘‘Envi6

ronmental Protection Agency’’.

7 8

(2) Section 45Q(e) is amended by striking ‘‘cap-

9

tured and disposed of or used as a tertiary injectant’’

10

and inserting ‘‘taken into account in accordance with

11

subsection (a)’’.

12 13 14 15

(c) E FFECTIVE D ATE .—The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act. PART VI—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN ELECTRIC MOTOR VEHICLES.

(a) INCREASE IN VEHICLES E LIGIBLE FOR C REDIT .— Section 30D(b)(2)(B) is amended by striking ‘‘250,000’’ and inserting ‘‘500,000’’. (b) E

XCLUSION OF N EIGHBORHOOD

E LECTRIC VEHICLES

FROM E XISTING C REDIT .—Section 30D(e)(1) is amended to read as follows: ‘‘(1) M OTOR VEHICLE .—The term ‘motor vehicle’ HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

means a motor vehicle (as defined in section

3

30(c)(2)), which is treated as a motor vehicle for pur-

4

poses of title II of the Clean Air Act.’’.

5

(c) C REDIT FOR C ERTAIN O THER VEHICLES .—Section 6 7

30D is amended— (1) by redesignating subsections (f) and (g) as

8 9

subsections (g) and (h), respectively, and

10 11

(2) by inserting after subsection (e) the following new subsection:

12 13 14

‘‘(f) C

REDIT FOR

C ERTAIN O THER VEHICLES .—For

purposes of this section— ‘‘(1) IN GENERAL.—In the case of a specified ve-

15

hicle, this section shall be applied with the following modifications: ‘‘(A) For purposes of subsection (a)(1), in lieu of the applicable amount determined under subsection (a)(2), the applicable amount shall be 10 percent of so much of the cost of the specified vehicle as does not exceed $40,000. ‘‘(B) Subsection (b) shall not apply and no specified vehicle shall be taken into account under subsection (b)(2). ‘‘(C) In the case of a specified vehicle which HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

is a 2-or 3-wheeled motor vehicle, subsection

3

(c)(1) shall be applied by substituting ‘2.5 kilo-

4

watt hours’ for ‘4 kilowatt hours’.

5

‘‘(D) In the case of a specified vehicle which 6

is a low-speed motor vehicle, subsection (c)(3)

7 8

shall not apply.

9

‘‘(2) S

10

PECIFIED VEHICLE .—For

purposes of this

subsection—

11

‘‘(A) I N GENERAL.—The term ‘specified ve-

12

hicle’ means—

13

‘‘(i) any 2- or 3- wheeled motor

14

vehicle, or

15

‘‘(ii) any low-speed motor vehicle, which is placed in service after December 31, 2009, and before January 1, 2012. ‘‘(B) 2-

OR 3 -WHEELED MOTOR VEHICLE .—

The term ‘2- or 3-wheeled motor vehicle’ means any vehicle— ‘‘(i) which would be described in section 30(c)(2) except that it has 2 or 3 wheels, ‘‘(ii) with motive power having a seat HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

or saddle for the use of the rider and de-

3

signed to travel on not more than 3 wheels

4

in contact with the ground,

5

‘‘(iii) which has an electric motor that 6

produces in excess of 5-brake horsepower,

7

‘‘(iv) which draws propulsion from 1

8 9

or more traction batteries, and

10

‘‘(v) which has been certified to the De-

11

partment of Transportation pursuant to

12

section 567 of title 49, Code of Federal Reg-

13

ulations, as conforming to all applicable

14

Federal motor vehicle safety standards in

15

effect on the date of the manufacture of the vehicle. ‘‘(C) L

OW -SPEED MOTOR VEHICLE .—The

term

‘low-speed motor vehicle’ means a motor vehicle (as defined in section 30(c)(2)) which— ‘‘(i) is placed in service after December 31, 2009, and ‘‘(ii) meets the requirements of section 571.500 of title 49, Code of Federal Regulations.’’. (d) E FFECTIVE D ATES .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(1) IN GENERAL.—The amendment made by sub-

2 3 4

sections (a) and (c) shall take effect on the date of the enactment of this Act.

5

(2) O

THER MODIFICATIONS .—The

amendments

6 7

made by subsection (b) shall apply to property placed

8

in service after December 31, 2009, in taxable years

9

beginning after such date.

10 11 12

SEC. 1152. CONVERSION KITS.

(a) IN G ENERAL.—Section 30B (relating to alternative motor vehicle credit) is amended by redesignating sub-

13 14 15

sections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: ‘‘(i) PLUG -IN C ONVERSION C REDIT .— ‘‘(1) I N 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) D

EFINITIONS AND SPECIAL RULES .—For

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1

‘‘(A) Q

2 3

UALIFIED PLUG -IN ELECTRIC DRIVE

MOTOR VEHICLE .—The

4

term ‘qualified plug-in

electric drive motor vehicle’ means any new

5

qualified plug-in electric drive motor vehicle (as 6

defined in section 30D(c), determined without re-

7

gard to paragraphs (4) and (6) thereof).

8 9

‘‘(B) P LUG -IN TRACTION BATTERY MOD -

10

ULE .—The

11

term ‘plug-in traction battery module’

means an electro-chemical energy storage device

12

which—

13

‘‘(i) which has a traction battery ca-

14

pacity of not less than 2.5 kilowatt hours,

15

‘‘(ii) which is equipped with an electrical plug by means of which it can be energized and recharged when plugged into an external source of electric power, ‘‘(iii) which consists of a standardized configuration and is mass produced, ‘‘(iv) which has been tested and approved by the National Highway Transportation Safety Administration as compliant with applicable motor vehicle and motor vehicle equipment safety standards when inHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

stalled by a mechanic with standardized

3

training in protocols established by the bat-

4

tery manufacturer as part of a nationwide

5

distribution program, 6

‘‘(v) which complies with the require-

7 8

ments of section 32918 of title 49, United

9

States Code, and

10

‘‘(vi) which is certified by a battery

11

manufacturer as meeting the requirements

12

of clauses (i) through (v).

13

‘‘(C) C REDIT ALLOWED TO LESSOR OF BATTERY

14

MODULE .—In

15

the case of a plug-in traction

battery module which is leased to the taxpayer, the credit allowed under this subsection shall be allowed to the lessor of the plug-in traction battery module. ‘‘(D) C

REDIT 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(3) T

2 3 4

ERMINATION .—This

subsection shall not

apply to conversions made after December 31, 2012.’’.

5

(b) C

REDIT

T REATED AS PART OF A LTERNATIVE M OTOR

6 7

VEHICLE C REDIT .—Section 30B(a) is amended by striking

8

‘‘and’’ at the end of paragraph (3), by striking the period

9

at the end of paragraph (4) and inserting ‘‘, and’’, and by

10

adding at the end the following new paragraph:

11

‘‘(5) the plug-in conversion credit

12 13

determined under subsection (i).’’. (c) N

14 15

O

R ECAPTURE FOR VEHICLES C ONVERTED TO

Q UALIFIED PLUG -IN E LECTRIC D RIVE M OTOR 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) E FFECTIVE D ATE .—The amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years beginning after such date.

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1 2

PART I—TEMPORARY INVESTMENT INCENTIVES

3

SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

4

ACQUIRED DURING 2009.

5

(a) E XTENSION OF S PECIAL A LLOWANCE.—

6

(1) I N GENERAL.—Paragraph (2) of section

7 8

168(k) is amended— (A) by striking ‘‘January 1, 2010’’ and in-

9

serting ‘‘January 1, 2011’’, and

10 11

(B) by striking ‘‘January 1, 2009’’

12

each place it appears and inserting

13

‘‘January 1, 2010’’.

14

(2) C ONFORMING AMENDMENTS .—

15

(A) The heading for subsection (k) of section 168 is amended by striking ‘‘J

ANUARY 1,

2009’’

and inserting ‘‘J ANUARY 1, 2010’’. (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking ‘‘ PRE-JANU ARY 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) HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

is amended by striking ‘‘January 1, 2009’’ and

3

inserting ‘‘January 1, 2010’’.

4

(E) Subparagraph (B) of section 1400N(d)(3)

5

is amended by striking ‘‘January 1, 2009’’ and 6

inserting ‘‘January 1, 2010’’.

7

(3) T

8 9

ECHNICAL

AMENDMENT .—Subparagraph

(D) of section 168(k)(4) is amended—

10

(A) by striking ‘‘and’’ at the end of clause

11

(i),

12

(B) by redesignating clause (ii) as clause

13

(iii), and

14

(C) by inserting after clause (i) the

15

following new clause: ‘‘(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, and’’. (b) E XTENSION OF E LECTION T O ACCELERATE THE AMT AND R ESEARCH C REDITS IN L IEU OF B ONUS D EPRECIATION .—Section 168(k)(4) (relating to election to accel erate the AMT and research credits in lieu of bonus depreciation) is amended— (1) by striking ‘‘2009’’ and inserting ‘‘2010’’in subparagraph (D)(iii) (as redesignated by subsection HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(a)(3)), and

3 4

(2) by adding at the end the following new subparagraph:

5

‘‘(H) S

PECIAL RULES FOR EXTENSION

6 PROPERTY.—

7

‘‘(i) T

8 9

AXPAYERS PREVIOUSLY ELECTING

ACCELERATION .—In

10

the case of a taxpayer

who made the election under subparagraph

11

(A) for its first taxable year ending after

12

March 31, 2008—

13

‘‘(I) the taxpayer may elect not to

14

have this paragraph apply to extension

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

property.

3

‘‘(ii) T

4

AXPAYERS NOT PREVIOUSLY

ELECTING ACCELERATION .—In

the case of a

5

taxpayer who did not make the election 6

under subparagraph (A) for its first taxable

7

year ending after March 31, 2008—

8 9

‘‘(I) the taxpayer may elect to

10

have this paragraph apply to its first

11

taxable year ending after December 31,

12

2008, and each subsequent taxable

13

year, and

14

‘‘(II) if the taxpayer makes the

15

election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property. ‘‘(iii) E

XTENSION

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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

1201(a) of the American Recovery and Re

3

investment Tax Act of 2009 (and the appli-

4

cation of such extension to this paragraph

5

pursuant to the amendment made by section 6

1201(b)(1) of such Act).’’.

7 8

(c) E FFECTIVE D ATES .— (1) I N GENERAL.—Except as provided in para-

9 10 11

graph (2), the amendments made by this section shall apply to property placed in service after December

12

31, 2008, in taxable years ending after such date. 13

(2) T

14 15

ECHNICAL AMENDMENT .—The

amendments

made by subsection (a)(3) shall apply to taxable years ending after March 31, 2008. SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX PENSING OF CERTAIN DEPRECIABLE BUSI NESS ASSETS.

(a) IN G ENERAL.—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) E FFECTIVE D ATE .—The amendments made by this HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section shall apply to taxable years beginning after Decem-

3

ber 31, 2008.

4

PART II—5-YEAR CARRYBACK OF OPERATING

5

LOSSES

6 7 8 9

SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES.

(a) I N G ENERAL.—Subparagraph (H) of section 172(b)(1) is amended to read as follows:

10

‘‘(H) C

11

ARRYBACK FOR 2008 AND 2009 NET

OPERATING LOSSES .—

12

‘‘(i) I N GENERAL.—In the case of an

13

applicable 2008 or 2009 net operating loss

14

with respect to which the taxpayer has elect-

15

ed the application of this subparagraph— ‘‘(I) subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 6 for ‘2’, ‘‘(II) subparagraph (E)(ii) shall be applied by substituting the whole number which is one less than the whole number substituted under subclause (II) for ‘2’, and ‘‘(III) subparagraph (F) shall not apply. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(ii) A PPLICABLE 2008 OR 2009 NET OP-

2 3

ERATING LOSS .—For

4

purposes of this sub-

paragraph, the term ‘applicable 2008 or

5

2009 net operating loss’ means— 6

‘‘(I) the taxpayer’s net operating

7 8

loss for any taxable year ending in

9

2008 or 2009, or

10

‘‘(II) if the taxpayer elects to have

11

this subclause apply in lieu of subclause

12

(I), the taxpayer’s net operating loss

13

for any taxable year beginning in 2008

14

or 2009.

15

‘‘(iii) E

LECTION .—Any

election under

this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. ‘‘(iv) C

OORDINATION WITH ALTERNATIVE

TAX NET OPERATING LOSS DEDUCTION .—In

the

case of a taxpayer who elects to have clause HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(ii)(II) apply, section 56(d)(1)(A)(ii) shall be

3

applied by substituting ‘ending during 2001

4

or 2002 or beginning during 2008 or 2009’

5

for ‘ending during 2001, 2002, 2008, or 6

2009’.’’.

7 8 9 10

(b) A LTERNATIVE T AX N ET O PERATING L OSS D EDUC TION .—Subclause

(I) of section 56(d)(1)(A)(ii) is amended

to read as follows:

11

‘‘(I) the amount of such deduction

12

attributable to the sum of carrybacks of

13

net operating losses from taxable years

14

ending during 2001, 2002, 2008, or

15

2009 and carryovers of net operating losses to such taxable years, or’’. (c) L

OSS

FROM O PERATIONS OF L IFE INSURANCE

C OMPANIES .—Subsection (b) of section 810 is amended by adding at the end the following new paragraph: ‘‘(4) C ARRYBACK FOR 2008 AND 2009 LOSSES .— ‘‘(A) IN GENERAL.—In the case of an applicable 2008 or 2009 loss from operations with respect to which the taxpayer has elected the application of this paragraph, paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting ‘5’ or HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘4’ for ‘3’.

2 3

‘‘(B) A

4

PPLICABLE 2008 OR 2009 LOSS FROM

OPERATIONS .—For

purposes of this paragraph,

5

the term ‘applicable 2008 or 2009 loss from 6

operations’ means—

7

‘‘(i) the taxpayer’s loss from operations

8 9

for any taxable year ending in 2008 or

10

2009, or

11

‘‘(ii) if the taxpayer elects to have this

12

clause apply in lieu of clause (i), the tax-

13

payer’s loss from operations for any taxable

14

year beginning in 2008 or 2009.

15

‘‘(C) E

LECTION .—Any

election under this

paragraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the loss from operations. Any such election, once made, shall be irrevocable. ‘‘(D) C

OORDINATION WITH ALTERNATIVE TAX

NET OPERATING LOSS DEDUCTION .—In

the case of a

taxpayer who elects to have subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be applied by HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

substituting ‘ending during 2001 or 2002 or

3

beginning during 2008 or 2009’ for ‘ending

4

during 2001, 2002, 2008, or 2009’.’’.

5

(d) C ONFORMING A MENDMENT .—Section 172 is amended 6 7 8 9 10

by striking subsection (k) and by redesignating subsection (l) as subsection (k). (e) E FFECTIVE D ATE .— (1) I N GENERAL.—Except as otherwise provided

11

in this subsection, the amendments made by this sec-

12

tion shall apply to net operating losses arising in tax-

13

able years ending after December 31, 2007.

14

(2) A LTERNATIVE TAX NET OPERATING LOSS DE -

15 DUCTION .—The

amendment made by subsection (b)

shall apply to taxable years ending after 1997. (3) L OSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES .—The

amendment made by subsection (d)

shall apply to losses from operations arising in taxable years ending after December 31, 2007. (4) T

RANSITIONAL RULE .—In

the case of a net

operating loss (or, in the case of a life insurance company, a loss from operations) for a taxable year ending before the date of the enactment of this Act— (A) any election made under section

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2

1 2

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

3

Code of 1986 with respect to such loss may (not-

4

withstanding such section) be revoked before the

5

applicable date, 6

(B) any election made under section 172(k)

7 8

or 810(b)(4) of such Code with respect to such

9

loss shall (notwithstanding such section) be treat-

10

ed as timely made if made before the applicable

11

date, and

12

(C) any application under section 6411(a)

13

of such Code with respect to such loss shall be

14

treated as timely filed if filed before the applica-

15

ble date. For purposes of this paragraph, the term ‘‘applicable date’’ means the date which is 60 days after the date of the enactment of this Act. SEC. 1212. EXCEPTION FOR TARP RECIPIENTS.

The amendments made by this part shall not apply to— (1) any taxpayer if— (A) the Federal Government acquires, at any time, an equity interest in the taxpayer pursuant to the Emergency Economic StabilizaHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

tion Act of 2008, or

3

(B) the Federal Government acquires, at

4

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

5

any equity interest with respect to the taxpayer 6

pursuant to such Act,

7

(2) the Federal National Mortgage Association and

8 9

the Federal Home Loan Mortgage Corporation, and

10 11

(3) any taxpayer which at any time in 2008 or 2009 is a member of the same affiliated group (as de-

12 13 14 15

fined in section 1504 of the Internal Revenue Code of 1986, determined without regard to subsection (b) thereof) as a taxpayer described in paragraph (1) or (2). PART III—INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH.

(a) I N G ENERAL.—Subsection (d) of section 51 is amended by adding at the end the following new paragraph: ‘‘(14) C

REDIT ALLOWED FOR UNEMPLOYED VET

ERANS AND DISCONNECTED YOUTH HIRED IN 2009 OR 2010 .—

‘‘(A) I N GENERAL.—Any unemployed veteran or disconnected youth who begins work for the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

employer during 2009 or 2010 shall be treated as

3

a member of a targeted group for purposes of

4

this subpart.

5

‘‘(B) D

EFINITIONS .—For

purposes of this

6

paragraph—

7

‘‘(i) U

8

NEMPLOYED

VETERAN .—The

9

term ‘unemployed veteran’ means any vet-

10

eran (as defined in paragraph (3)(B), deter-

11

mined without regard to clause (ii) thereof)

12

who is certified by the designated local

13

agency as—

14

(I) having been discharged or re-

15

leased from active duty in the Armed Forces during the period beginning on September 1, 2001, and ending on December 31, 2010, and ‘‘(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. ‘‘(ii) D

ISCONNECTED

YOUTH .—The

term ‘disconnected youth’ means any indiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

vidual who is certified by the designated

3

local agency—

4

‘‘(I) as having attained age

5

16 but not age 25 on the hiring 6

date,

7

‘‘(II) as not regularly attending

8 9

any secondary, technical, or post-sec-

10

ondary school during the 6-month pe-

11

riod preceding the hiring date,

12

‘‘(III) as not regularly employed

13

during such 6-month period, and

14

‘‘(IV) as not readily employable by

15

reason of lacking a sufficient number of basic skills.’’. (b) E FFECTIVE D ATE .—The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. PART IV—CANCELLATION OF INDEBTEDNESS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM INDEBTEDNESS DISCHARGED BY THE REPURCHASE OF A DEBT INSTRU MENT.

(a) I N G ENERAL.—Section 108 (relating to income HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

from discharge of indebtedness) is amended by adding at

3

the end the following new subsection:

4

‘‘(i) D EFERRAL AND R ATABLE INCLUSION OF INCOME A RISING

5

FROM I NDEBTEDNESS D ISCHARGED

BY THE

R EPURCHASE

OF A

6 7

D EBT INSTRUMENT .— ‘‘(1) I N GENERAL.—Notwithstanding section 61,

8 9 10 11

income from the discharge of indebtedness in connection with the repurchase of a debt instrument after December 31, 2008, and before January 1, 2011, shall

12 13 14

be includible in gross income ratably over the 8-taxable-year period beginning with— ‘‘(A) in the case of a repurchase occurring

15

in 2009, the second taxable year following the taxable year in which the repurchase occurs, and ‘‘(B) in the case of a repurchase occurring in 2010, the taxable year following the taxable year in which the repurchase occurs. ‘‘(2) D

EBT INSTRUMENT .—For

purposes of this

subsection, the term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). ‘‘(3) R

EPURCHASE .—For

purposes of this sub-

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2

1 2

section, the term ‘repurchase’ means, with respect to

3

any debt instrument, a cash purchase of the debt in-

4

strument by—

5

‘‘(A) the debtor which issued the debt 6

instrument, or

7

‘‘(B) any person related to such debtor.

8 9

For purposes of subparagraph (B), the determination

10

of whether a person is related to another person shall

11

be made in the same manner as under subsection

12

(e)(4). 13

‘‘(4) A UTHORITY TO PRESCRIBE REGULATIONS .— The

14 15

Secretary may prescribe such regulations as may be necessary or appropriate for purposes of applying this subsection.’’. (b) E FFECTIVE D ATE .—The amendments made by this section shall apply to discharges in taxable years ending after December 31, 2008. PART V—QUALIFIED SMALL BUSINESS STOCK SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010.

(a) I N G ENERAL.—Section 1202(a) is amended by adding at the end the following new paragraph: ‘‘(3) S PECIAL RULES FOR 2009 AND 2010 .—In the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

case of qualified small business stock acquired after

3

the date of the enactment of this paragraph and before

4

January 1, 2011—

5

‘‘(A) paragraph (1) shall be applied by sub6

stituting ‘75 percent’ for ‘50 percent’, and

7

‘‘(B) paragraph (2) shall not apply.’’.

8 9

(b) E FFECTIVE D ATE .—The amendment made by this

10

section shall apply to stock acquired after the date of the

11 12

enactment of this Act. PART VI—PARITY FOR TRANSPORTATION FRINGE

13 BENEFITS

14 15

SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM MUTER TRANSIT BENEFITS AND TRANSIT PASSES.

(a) IN G ENERAL.—Paragraph (2) of section 132(f) is amended by adding at the end the following flush sentence:

‘‘In the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount under subparagraph (B) (as in effect for such month).’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

(b) E FFECTIVE D ATE .—The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section.

5

PART VII—S CORPORATIONS

6 SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE

7 RIOD FOR BUILT-IN GAINS TAX.

8 9

(a) I N G ENERAL.—Paragraph (7) of section 1374(d)

10

(relating to definitions and special rules) is amended to

11

read as follows:

12

‘‘(7) R ECOGNITION PERIOD .—

13

‘‘(A) I N GENERAL.—The term ‘recognition

14

period’ means the 10-year period beginning with

15

the 1st day of the 1st taxable year for which the corporation was an S corporation. ‘‘(B) S PECIAL RULE FOR 2009 AND 2010 .—In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net unrecognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies. ‘‘(C) S PECIAL RULE FOR DISTRIBUTIONS TO HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

SHAREHOLDERS .—For

3

section to any amount includible in income by

4

purposes of applying this

reason of distributions to shareholders pursuant

5

to section 593(e)— 6

‘‘(i) subparagraph (A) shall be applied

7 8

without regard to the phrase ‘10-year’, and

9

‘‘(ii) subparagraph (B) shall not apply.’’.

10

(b) E FFECTIVE D ATE .—The amendment made by this

11

section shall apply to taxable years beginning after Decem-

12 13

ber 31, 2008. PART VIII—BROADBAND INCENTIVES

14 15

SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT.

(a) I N G ENERAL.—Subpart E of part IV of chapter 1 of the Internal Revenue Code of 1986 (relating to rules for computing investment credit), as amended by this Act, is amended by inserting after section 48C the following new section: ‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT.

‘‘(a) G ENERAL R ULE.—For purposes of section 46, the broadband credit for any taxable year is the sum of— ‘‘(1) the current generation broadband credit, plus ‘‘(2) the next generation broadband credit. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

‘‘(b) C

URRENT

G ENERATION B ROADBAND C REDIT ; N EXT

G ENERATION B ROADBAND C REDIT .—For purposes of this section—

5

‘‘(1) C

URRENT GENERATION BROADBAND CRED -

6 7

IT .—The

current generation broadband credit for any

8

taxable year is equal to 10 percent (20 percent in the

9

case of qualified subscribers which are unserved sub-

10

scribers) of the qualified broadband expenditures in-

11

curred with respect to qualified equipment providing

12 13 14 15

current generation broadband services to qualified subscribers and taken into account with respect to such taxable year. ‘‘(2) N

EXT GENERATION BROADBAND CREDIT .—

The

next generation broadband credit for any taxable year is equal to 20 percent of the qualified broadband expenditures incurred with respect to qualified equipment providing next generation broadband services to qualified subscribers and taken into account with respect to such taxable year. ‘‘(c) W HEN E XPENDITURES T AKEN INTO A CCOUNT .— For purposes of this section— ‘‘(1) I N GENERAL.—Qualified broadband expenditures with respect to qualified equipment shall be HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

taken into account with respect to the first taxable

3

year in which—

4

‘‘(A) current generation broadband services

5

are provided through such equipment to qualified 6

subscribers, or

7

‘‘(B) next generation broadband services

8 9

are provided through such equipment to

10

qualified subscribers.

11

‘‘(2) L IMITATION .—

12

‘‘(A) I N GENERAL.—Qualified broadband 13

expenditures shall be taken into account under

14

paragraph (1) only with respect to qualified

15

equipment— ‘‘(i) the original use of which commences with the taxpayer, and ‘‘(ii) which is placed in service, after December 31, 2008, and before January 1, 2011. ‘‘(B) S

ALE -LEASEBACKS .—For

purposes of

subparagraph (A), if property— ‘‘(i) is originally placed in service after December 31, 2008, by any person, and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(ii) sold and leased back by such per-

3

son within 3 months after the date such property

4

was originally placed in service, such property

5

shall be treated as originally placed in service 6

not earlier than the date on which such property

7 8

is used under the leaseback referred to in clause

9

(ii).

10 11

‘‘(d) S

PECIAL

A LLOCATION R ULES FOR C URRENT

G ENERATION B ROADBAND S ERVICES .—For purposes of de-

12 13 14 15

termining the current generation broadband credit under subsection (a)(1) with respect to qualified equipment through which current generation broadband services are provided, if the qualified equipment is capable of serving both qualified subscribers and other subscribers, the qualified broadband expenditures shall be multiplied by a fraction— ‘‘(1) the numerator of which is the sum of the number of potential qualified subscribers within the rural areas and the underserved areas and the unserved areas which the equipment is capable of serving with current generation broadband services, and ‘‘(2) the denominator of which is the total potenHR 1 PP

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2

2

tial subscriber population of the area which the

3

equipment is capable of serving with current genera-

4

tion broadband services.

5

‘‘(e) D EFINITIONS .—For purposes of this section— 6 7

‘‘(1) A

NTENNA .—The

term ‘antenna’ means any

8

device used to transmit or receive signals through the

9

electromagnetic spectrum, including satellite equip-

10

ment.

11

‘‘(2) C

ABLE OPERATOR .—The

term ‘cable oper-

12 13 14 15

ator’ has the meaning given such term by section 602(5) of the Communications Act of 1934 (47 U.S.C. 522(5)). ‘‘(3) C

OMMERCIAL MOBILE SERVICE CARRIER .—

The

term ‘commercial mobile service carrier’ means any person authorized to provide commercial mobile radio service as defined in section 20.3 of title 47, Code of Federal Regulations. ‘‘(4) C ICE .—The

URRENT GENERATION BROADBAND SERV -

term ‘current generation broadband serv-

ice’ means the transmission of signals at a rate of at least 5,000,000 bits per second to the subscriber and at least 1,000,000 bits per second from the subscriber (at least 3,000,000 bits per second to the subscriber HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and at least 768,000 bits per second from the sub-

3

scriber in the case of service through radio trans-

4

mission of energy).

5

‘‘(5) M

ULTIPLEXING OR DEMULTIPLEXING .—The

6 7

term ‘multiplexing’ means the transmission of 2 or

8

more signals over a single channel, and the term

9

‘demultiplexing’ means the separation of 2 or more

10 11

signals previously combined by compatible multiplexing equipment.

12

‘‘(6) N EXT GENERATION BROADBAND SERVICE.— The

13 14 15

term ‘next generation broadband service’ means the transmission of signals at a rate of at least 100,000,000 bits per second to the subscriber (or its equivalent when the data rate is measured before being compressed for transmission) and at least 20,000,000 bits per second from the subscriber (or its equivalent as so measured). ‘‘(7) N

ONRESIDENTIAL SUBSCRIBER .—The

term

‘nonresidential subscriber’ means any person who purchases broadband services which are delivered to the permanent place of business of such person. ‘‘(8) O PEN VIDEO SYSTEM OPERATOR .—The term ‘open video system operator’ means any person auHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

thorized to provide service under section 653 of the

3

Communications Act of 1934 (47 U.S.C. 573).

4

‘‘(9) O

THER WIRELESS CARRIER .—The

term ‘other

5

wireless carrier’ means any person (other than a 6 7

telecommunications carrier, commercial mobile

8

service carrier, cable operator, open video system op-

9

erator, or satellite carrier) providing current genera-

10

tion broadband services or next generation broadband

11

service to subscribers through the radio transmission

12 13

of energy. ‘‘(10) P ACKET SWITCHING .—The term ‘packet

14 15

switching’ means controlling or routing the path of a digitized transmission signal which is assembled into packets or cells. ‘‘(11) P ROVIDER .—The term ‘provider’ means, with respect to any qualified equipment any— ‘‘(A) cable operator, ‘‘(B) commercial mobile service carrier, ‘‘(C) open video system operator, ‘‘(D) satellite carrier, ‘‘(E) telecommunications carrier, or ‘‘(F) other wireless carrier, providing current generation broadband services or next generation broadband services to subscribers through such qualified equipment. HR 1 PP

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1

‘‘(12) P ROVISION OF SERVICES .—A provider shall

2 3 4

be treated as providing services to 1 or more subscribers if—

5

‘‘(A) such a subscriber has been passed by 6

the provider’s equipment and can be connected to

7 8

such equipment for a standard connection fee,

9

‘‘(B) the provider is physically able to deliver

10

current generation broadband services or next

11

generation broadband services, as applicable, to

12

such a subscriber without making more than an

13

insignificant investment with respect to such

14

subscriber,

15

‘‘(C) the provider has made reasonable efforts to make such subscribers aware of the availability of such services, ‘‘(D) such services have been purchased by 1 or more such subscribers, and ‘‘(E) such services are made available to such subscribers at average prices comparable to those at which the provider makes available similar services in any areas in which the provider makes available such services. ‘‘(13) Q UALIFIED EQUIPMENT .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(A) I N GENERAL.—The term ‘qualified

3

equipment’ means property with respect to which

4

depreciation (or amortization in lieu of depre-

5

ciation) is allowable and which provides current 6

generation broadband services or next

7

generation broadband services—

8 9

‘‘(i) at least a majority of the time

10

during periods of maximum demand to each

11

subscriber who is utilizing such services,

12

and

13

‘‘(ii) in a manner substantially the

14

same as such services are provided by the

15

provider to subscribers through equipment with respect to which no credit is allowed under subsection (a)(1). ‘‘(B) O

NLY CERTAIN INVESTMENT TAKEN INTO

ACCOUNT .—Except

as provided in subparagraph

(C) or (D), equipment shall be taken into account under subparagraph (A) only to the extent it— ‘‘(i) extends from the last point of switching to the outside of the unit, building, dwelling, or office owned or leased by a subscriber in the case of a telecommuniHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

cations carrier or

3

broadband-over-powerline operator,

4

‘‘(ii) extends from the customer side of

5

the mobile telephone switching office to a 6

transmission/receive antenna (including

7 8

such antenna) owned or leased by a sub-

9

scriber in the case of a commercial mobile

10

service carrier,

11

‘‘(iii) extends from the customer side of

12

the headend to the outside of the unit, build-

13

ing, dwelling, or office owned or leased by

14

a subscriber in the case of a cable operator

15

or open video system operator, or ‘‘(iv) extends from a transmission/receive antenna (including such antenna) which transmits and receives signals to or from multiple subscribers, to a transmission/receive antenna (including such antenna) on the outside of the unit, building, dwelling, or office owned or leased by a subscriber in the case of a satellite carrier or other wireless carrier, unless such other wireless carrier is also a telecommuniHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

cations carrier.

3

‘‘(C) P ACKET SWITCHING EQUIPMENT .—

4

Packet switching equipment, regardless of loca-

5

tion, shall be taken into account under subpara6

graph (A) only if it is deployed in connection

7 8

with equipment described in subparagraph (B)

9

and is uniquely designed to perform the function

10

of packet switching for current generation

11

broadband services or next generation

12

broadband services, but only if such packet

13

switching is the last in a series of such functions

14

performed in the transmission of a signal to a

15

subscriber or the first in a series of such functions performed in the transmission of a signal from a subscriber. ‘‘(D) M

ULTIPLEXING AND DEMULTIPLEXING

EQUIPMENT .—Multiplexing

and demultiplexing

equipment shall be taken into account under subparagraph (A) only to the extent it is deployed in connection with equipment described in subparagraph (B) and is uniquely designed to perform the function of multiplexing and demultiplexing packets or cells of data and makHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ing associated application adaptions, but only if

3

such multiplexing or demultiplexing equipment is

4

located between packet switching equipment

5

described in subparagraph (C) and the sub6

scriber’s premises.

7 8

‘‘(14) Q UALIFIED BROADBAND EXPENDITURE .— ‘‘(A)

9

I

10

N GENERAL .—The

term ‘qualified

broadband

expenditure’ means any amount—

11

‘‘(i) chargeable to capital account with

12

respect to the purchase and installation of

13

qualified equipment (including any upgrades

14

thereto) for which depreciation is allowable

15

under section 168, and ‘‘(ii) incurred after December 31, 2008, and before January 1, 2011. ‘‘(B) C

ERTAIN SATELLITE EXPENDITURES

EXCLUDED .—Such

term shall not include any

expenditure with respect to the launching of any satellite equipment. ‘‘(C) L EASED EQUIPMENT .—Such term shall include so much of the purchase price paid by the lessor of equipment subject to a lease described in subsection (c)(2)(B) as is attributable HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to expenditures incurred by the lessee which

3

would otherwise be described in subparagraph

4

(A).

5

‘‘(15) Q

UALIFIED

SUBSCRIBER .—The

term

6 7

‘qualified subscriber’ means— ‘‘(A) with respect to the provision of current

8 9

generation broadband services—

10

‘‘(i) any nonresidential subscriber

11

maintaining a permanent place of business

12

in a rural area, an underserved area, or an

13

unserved area, or

14

‘‘(ii) any residential subscriber residing in a

15

dwelling located in a rural area, an underserved area, or an unserved area which is not a saturated market, and ‘‘(B) with respect to the provision of next generation broadband services— ‘‘(i) any nonresidential subscriber maintaining a permanent place of business in a rural area, an underserved area, or an unserved area , or ‘‘(ii) any residential subscriber. ‘‘(16) R

ESIDENTIAL SUBSCRIBER .—The

term ‘residential

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subscriber’ means any individual who purchases

3

broadband services which are delivered to such

4

individual’s dwelling.

5

‘‘(17) R

URAL AREA .—The

term ‘rural area’

6 7

means any census tract which— ‘‘(A) is not within 10 miles of any incor-

8 9

porated or census designated place containing

10

more than 25,000 people, and

11

‘‘(B) is not within a county or county

12

equivalent which has an overall population den

13

sity of more than 500 people per square mile of

14

land.

15

‘‘(18) R

URAL SUBSCRIBER .—The

term ‘rural

subscriber’ means any residential subscriber residing in a dwelling located in a rural area or nonresidential subscriber maintaining a permanent place of business located in a rural area. ‘‘(19) S

ATELLITE CARRIER .—The

term ‘satellite

carrier’ means any person using the facilities of a satellite or satellite service licensed by the Federal Communications Commission and operating in the Fixed-Satellite Service under part 25 of title 47 of the Code of Federal Regulations or the Direct Broadcast HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Satellite Service under part 100 of title 47 of such

3

Code to establish and operate a channel of commu-

4

nications for distribution of signals, and owning or

5

leasing a capacity or service on a satellite in order to 6 7

provide such point-to-multipoint distribution. ‘‘(20) S

8 9 10

ATURATED MARKET .—The

term ‘saturated

market’ means any census tract in which, as of the date of the enactment of this section—

11

‘‘(A) current generation broadband services

12

have been provided by a single provider to 85

13

percent or more of the total number of potential

14

residential subscribers residing in dwellings lo-

15

cated within such census tract, and ‘‘(B) such services can be utilized— ‘‘(i) at least a majority of the time during periods of maximum demand by each such subscriber who is utilizing such services, and ‘‘(ii) in a manner substantially the same as such services are provided by the provider to subscribers through equipment with respect to which no credit is allowed under subsection (a)(1). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(21) S

2 3 4

UBSCRIBER .—The

term ‘subscriber’

means any person who purchases current generation broadband services or next generation broadband

5

services. 6

‘‘(22) T

7

ELECOMMUNICATIONS

CARRIER .—The

8

term ‘telecommunications carrier’ has the meaning

9

given such term by section 3(44) of the Communica-

10

tions Act of 1934 (47 U.S.C. 153(44)), but—

11

‘‘(A) includes all members of an affiliated

12

group of which a telecommunications carrier is a

13

member, and

14

‘‘(B) does not include any commercial mo-

15

bile service carrier. ‘‘(23) T LATION .—The

OTAL POTENTIAL SUBSCRIBER POPU -

term ‘total potential subscriber popu-

lation’ means, with respect to any area and based on the most recent census data, the total number of potential residential subscribers residing in dwellings located in such area and potential nonresidential subscribers maintaining permanent places of business located in such area. ‘‘(24) U

NDERSERVED AREA .—The

term ‘under-

served area’ means any census tract which is located HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

in—

3

‘‘(A) an empowerment zone or enterprise

4

community designated under section 1391,

5

‘‘(B) the District of Columbia Enterprise 6

Zone established under section 1400,

7 8

‘‘(C) a renewal community

9

designated under section 1400E, or

10

‘‘(D) a low-income community designated

11

under section 45D.

12

‘‘(25) U

13 14 15

NDERSERVED SUBSCRIBER .—The

term

‘underserved subscriber’ means any residential subscriber residing in a dwelling located in an underserved area or nonresidential subscriber maintaining a permanent place of business located in an underserved area. ‘‘(26) U

NSERVED AREA .—The

term ‘unserved

area’ means any census tract in which no current generation broadband services are provided, as certified by the State in which such tract is located not later than September 30, 2009. ‘‘(27) U

NSERVED

SUBSCRIBER .—The

‘unserved subscriber’ means any residential subscriber residing in a dwelling located in an HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

term

2 unserved area or nonresidential subscriber maintaining a permanent place of business located in an unserved area.’’. (b) C REDIT T O B E PART OF INVESTMENT C REDIT .— Section 46 (relating to the amount of investment credit), as amended by this Act, is amended by striking ‘‘and’’ at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ‘‘, and’’, and by adding at the end the following: ‘‘(6) the broadband Internet access credit.’’ (c) S

PECIAL

R ULE FOR M UTUAL OR C OOPERATIVE

T ELEPHONE C OMPANIES .—Section 501(c)(12)(B) (relating to list of exempt organizations) is amended by striking ‘‘or’’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ‘‘, or’’, and by adding at the end the following new clause: ‘‘(v) from the sale of property subject to a lease described in section 48D(c)(2)(B), but only to the extent such income does not in any year exceed an amount equal to the credit for qualified broadband expenditures which would be determined HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under section 48D for such year if the

3

mutual or cooperative telephone company

4

was not exempt from taxation and was

5

treated as the owner of the property subject 6

to such lease.’’.

7 8

1

9

2

10

3

11

4

12

5

13

6

14

7

15

8 9

(d) C ONFORMING A MENDMENTS .— (1) Section 49(a)(1)(C), as amended by this Act, is amended by striking ‘‘and’’ at the end of clause (iv), by striking the period at the end of clause (v) and inserting ‘‘, and’’, and by adding after clause (v) the following new clause: ‘‘(vi) the portion of the basis of any qualified equipment attributable to qualified broadband expenditures under section

HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

48D.’’.

2 3

1

4

0

5

1

6

1

7

1

8

2

9

1

10

3

11

1

12

4

13

1

14

5

15

1 6 1 7 1 8 1 9 2 0 2 1 2

HR 1 PP VerDate Nov 24 2010 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

2

3

(2) The table of sections for subpart E of part IV

4

of subchapter A of chapter 1, as amended by this Act,

5

is amended by inserting after the item relating to sec-

6

tion 48C the following: 7 ‘‘Sec. 48D. Broadband internet access credit’’.

8 9 10 11 12 13 14

(e) D ESIGNATION OF C ENSUS T RACTS .— 2 3 2 4 2 5

15

(1) IN GENERAL.—The Secretary of the Treasury shall, not later than 90 days after the date of the en actment of this Act, designate and publish those census tracts meeting the criteria described in paragraphs (17), (23), (24), and (26) of section 48D(e) of the Internal Revenue Code of 1986 (as added by this section). In making such designations, the Secretary of the Treasury shall consult with such other departments and agencies as the Secretary determines appropriate. (2) S ATURATED MARKET .—

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(A) I N GENERAL.—For purposes of desig-

3

nating and publishing those census tracts meeting

4

the criteria described in subsection (e)(20) of

5

such section 48D— 6

(i) the Secretary of the Treasury shall

7 8

prescribe not later than 30 days after the

9

date of the enactment of this Act the form

10

upon which any provider which takes the

11

position that it meets such criteria with re-

12

spect to any census tract shall submit a list

13

of such census tracts (and any other infor-

14

mation required by the Secretary) not later

15

than 60 days after the date of the publication of such form, and (ii) the Secretary of the Treasury shall publish an aggregate list of such census tracts submitted and the applicable providers not later than 30 days after the last date such submissions are allowed under clause (i). (B) N

O SUBSEQUENT LISTS REQUIRED .—

The

Secretary of the Treasury shall not be required to publish any list of census tracts meeting such HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

criteria subsequent to the list described in

3

subparagraph (A)(ii).

4

(C) A UTHORITY TO DISREGARD FALSE SUB-

5 MISSIONS .—In

addition to imposing any other

6

applicable penalties, the Secretary of the Treas-

7 8

ury shall have the discretion to disregard any

9

form described in subparagraph (A)(i) on which

10

a provider knowingly submitted false information.

11 12 13

(f) O THER R EGULATORY M ATTERS .— (1) P ROHIBITION .—No Federal or State agency

14 15

or instrumentality shall adopt regulations or ratemaking procedures that would have the effect of eliminating or reducing any credit or portion thereof allowed under section 48D of the Internal Revenue Code of 1986 (as added by this section) or otherwise subverting the purpose of this section. (2) T

REASURY REGULATORY AUTHORITY.—It

is the

intent of Congress in providing the broadband Internet access credit under section 48D of the Internal Revenue Code of 1986 (as added by this section) to provide incentives for the purchase, installation,

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and connection of equipment and facilities offering

3

expanded broadband access to the Internet for users

4

in certain low income and rural areas of the United

5

States, as well as to residential users nationwide, in a 6 7

manner that maintains competitive neutrality among

8

the various classes of providers of broadband

9

services. Accordingly, the Secretary of the Treasury

10 11

shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of section

12 13

48D of such Code, including— (A) regulations to determine how and when

14

a taxpayer that incurs qualified broadband ex-

15

penditures satisfies the requirements of section 48D of such Code to provide broadband services, and (B) regulations describing the information, records, and data taxpayers are required to provide the Secretary to substantiate compliance with the requirements of section 48D of such Code. (g) E FFECTIVE D ATE .—The amendments made by this section shall apply to expenditures incurred after December 31, 2008. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

PART IX—CLARIFICATION OF REGULATIONS RE-

3

LATED TO LIMITATIONS ON CERTAIN BUILT- IN

4

LOSSES FOLLOWING AN OWNERSHIP CHANGE

5 SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO

6 LIMITATIONS ON CERTAIN BUILT-IN LOSSES

7 FOLLOWING AN OWNERSHIP CHANGE.

8 9

(a) FINDINGS .—Congress finds as follows:

10

(1) The delegation of authority to the Secretary

11

of the Treasury under section 382(m) of the Internal

12

Revenue Code of 1986 does not authorize the Sec-

13

retary to provide exemptions or special rules that are 14 15

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 InterHR 1 PP

VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

nal Revenue Code of 1986 of the limitation on built-

3

in losses following an ownership change of a bank.

4

(b) D

ETERMINATION OF

FORCE AND E FFECT OF INTERNAL

5

R EVENUE S ERVICE N OTICE 2008–83 E

XEMPTING

B ANKS FROM

6 7 8

L IMITATION

C ERTAIN B UILT – IN L OSSES F OLLOWING

O WNERSHIP C HANGE.—

9 10

ON

(1) IN GENERAL.—Internal Revenue Service Notice 2008–83—

11

(A) shall be deemed to have the force and ef-

12

fect of law with respect to any ownership change

13

(as defined in section 382(g) of the Internal Rev-

14

enue Code of 1986) occurring on or before Janu-

15

ary 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) B

INDING

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) is pursuant to a written agreement en-

2 3

tered into on or before such date and such agree-

4

ment was described on or before such date in a

5

public announcement or in a filing with the Se6

curities and Exchange Commission required by

7

reason of such ownership change.

8 9

Subtitle D—Manufacturing

10

Recovery Provisions

11 SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF IN

12 DUSTRIAL DEVELOPMENT BONDS TO FACILI

13 TIES MANUFACTURING INTANGIBLE PROP

14

ERTY.

15

(a) I N G ENERAL.—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) C

ERTAIN

CLUDED .—Such

FACILITIES

IN -

term includes facilities

which are directly related and ancillary to a HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

manufacturing facility (determined without

3

regard to this clause) if—

4

‘‘(I) such facilities are located on

5

the same site as the manufacturing fa6

cility, and

7 8

‘‘(II) not more than 25 percent of

9

the net proceeds of the issue are used to

10

provide such facilities.

11

‘‘(iii) S

PECIAL RULES FOR BONDS ISSUED

12 IN 2009 AND 2010 .—In

13

the case of any issue

made after the date of enactment of this

14

clause and before January 1, 2011, clause

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

regard to this subclause) if such facility

3

is located on the same site as the

4

manufacturing facility.’’.

5

(b) E FFECTIVE D ATE .—The amendments made by this 6 7 8 9

section shall apply to bonds issued after the date of the enactment of this Act. SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN

10 11 12

ERGY FACILITIES.

(a) IN G ENERAL.—Section 46 (relating to amount of credit) is amended by striking ‘‘and’’ at the end of para-

13 14 15

graph (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) A

MOUNT OF C REDIT .—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) I N G ENERAL.—For purposes of section 46, the qualifying advanced energy project credit for any taxable HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

year is an amount equal to 30 percent of the qualified in-

3

vestment for such taxable year with respect to any quali-

4

fying advanced energy project of the taxpayer.

5

‘‘(b) Q UALIFIED INVESTMENT .— 6

‘‘(1) I N GENERAL.—For purposes of subsection

7 8

(a), the qualified investment for any taxable year is

9

the basis of eligible property placed in service by the

10

taxpayer during such taxable year which is part of a

11

qualifying advanced energy project—

12

‘‘(A)(i) the construction, reconstruction, or 13

erection of which is completed by the taxpayer

14

after October 31, 2008, or

15

‘‘(ii) which is acquired by the taxpayer if the original use of such eligible property commences with the taxpayer after October 31, 2008, and ‘‘(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. ‘‘(2) C

ERTAIN 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

this section.

3 4

‘‘(3) L IMITATION .—The amount which is treated for all taxable years with respect to any qualifying

5

advanced energy project shall not exceed the amount 6 7

designated by the Secretary as eligible for the credit

8

under this section.

9

‘‘(c) D EFINITIONS .— ‘‘(1) Q UALIFYING

10 11

ADVANCED

ENERGY

PROJECT .—

12

‘‘(A) I N GENERAL.—The term ‘qualifying

13

advanced energy project’ means a project—

14

‘‘(i) which re-equips, expands, or

15

establishes a manufacturing facility for the production of property which is— ‘‘(I) designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources, ‘‘(II) designed to manufacture fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles,

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(III) designed to manufacture

2 3

electric grids to support the trans-

4

mission of intermittent sources of re-

5

newable energy, including storage of 6

such energy,

7

‘‘(IV) designed to capture and se-

8 9

quester carbon dioxide emissions,

10

‘‘(V) designed to refine or blend

11

renewable fuels or to produce energy

12

conservation technologies (including

13

energy-conserving lighting technologies

14

and smart grid technologies), or

15

‘‘(VI) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and ‘‘(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section. ‘‘(B) E

XCEPTION .—Such

term shall not in-

clude 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

renewable fuels).

3

‘‘(2) E

4

LIGIBLE PROPERTY.—The

term ‘eligible

property’ means any property which is part of a

5

qualifying advanced energy project and is necessary 6 7

for the production of property described in paragraph

8

(1)(A)(i).

9

‘‘(d) Q UALIFYING A DVANCED E NERGY PROJECT PRO -

10

GRAM .—

11

‘‘(1) E STABLISHMENT .— ‘‘(A) I N GENERAL.—Not later than 180 days

12 13

after the date of enactment of this section, the

14

Secretary, in consultation with the Secretary of

15

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) L

IMITATION .—The

total amount of

credits that may be allocated under the program shall not exceed $2,000,000,000. ‘‘(2) C ERTIFICATION .— ‘‘(A) A

PPLICATION PERIOD .—Each

applicant

for certification under this paragraph shall

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2

1 2

submit an application containing such informa-

3

tion as the Secretary may require during the 3-

4

year period beginning on the date the Secretary

5

establishes the program under paragraph (1). 6

‘‘(B) T

7

IME TO MEET CRITERIA FOR CER -

8

TIFICATION .—Each

9

shall have 2 years from the date of acceptance by

10

applicant for certification

the Secretary of the application during which to

11

provide to the Secretary evidence that the re-

12

quirements of the certification have been met.

13

‘‘(C) P ERIOD OF ISSUANCE.—An applicant

14

which receives a certification shall have 5 years

15

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) S

ELECTION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) shall take into consideration

2 3

which projects—

4

‘‘(i) will provide the greatest domestic

5

job creation (both direct and indirect) dur6

ing the credit period,

7 8

‘‘(ii) will provide the greatest net im-

9

pact in avoiding or reducing air pollutants

10

or anthropogenic emissions of greenhouse

11

gases,

12

‘‘(iii) have the greatest readiness for

13

commercial employment, replication, and

14

further commercial use in the

15

United States, ‘‘(iv) will provide the greatest benefit in terms of newness in the commercial market, ‘‘(v) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and ‘‘(vi) have the shortest project time from certification to completion. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(4) R EVIEW AND REDISTRIBUTION .—

2 3

‘‘(A) R EVIEW .—Not later than 6 years after

4

the date of enactment of this section, the Sec-

5

retary shall review the credits allocated under

6

this section as of the date which is 6 years after

7

the date of enactment of this section.

8

‘‘(B) R

9 10

EDISTRIBUTION .—The

Secretary may

reallocate credits awarded under this section if

11

the Secretary determines that—

12

‘‘(i) there is an insufficient quantity of 13

qualifying applications for certification

14

pending at the time of the review, or

15

‘‘(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) R

EALLOCATION .—If

the Secretary de-

termines 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 program for applications for certification. ‘‘(5) D

ISCLOSURE OF ALLOCATIONS .—The

Sec-

retary 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) D ENIAL OF D OUBLE B ENEFIT .—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) C ONFORMING A MENDMENTS .— (1) Section 49(a)(1)(C) is amended by striking ‘‘and’’ at the end of clause (iii), by striking the period

1at the end of clause (iv) and inserting ‘‘, and’’, and 2by adding after clause (iv) the following new clause: 3‘‘(v) the basis of any property which is 4part of a qualifying advanced energy 5project under section 48C.’’. 6(2) The table of sections for subpart E of part IV 7of subchapter A of chapter 1 is amended by inserting 8after the item relating to section 48B the following 9

new item: HR 1 PP

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2

1 2

‘‘48C. Qualifying advanced energy project credit.’’.

3

10(d) E FFECTIVE D ATE .—The amendments made by this

4

11 section shall apply to periods after the date of the enactment

5

12 of this Act, under rules similar to the rules of section 48(m)

6 7 8

13 of the Internal Revenue Code of 1986 (as in effect on the 14 day before the date of the enactment of the Revenue Rec 15 onciliation Act of 1990).

9

16

SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES

10

17 PRODUCINGPLUG-INELECTRICDRIVE

11

18 MOTOR VEHICLES AND COMPONENTS.

12

19(a) D

13

EDUCTION FOR

M ANUFACTURING FACILITIES .—

14

20 Part VI of subchapter B of chapter 1 (relating to itemized

15

21 deductions for individuals and corporations) is amended by 22 inserting after section 179E the following new section: ‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA CILITIES PRODUCING PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES AND COMPONENTS.

‘‘(a) T

REATMENT AS

E XPENSES .—A taxpayer may elect to

treat the applicable percentage of the cost of any qualified plug-in electric drive motor vehicle manufacturing facility property as an expense which is not chargeable to a capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the qualified manufacturing facility property is placed in service.

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2

1 2 3

‘‘(b) A PPLICABLE PERCENTAGE.—For purposes of subsection (a), the applicable percentage is—

4

‘‘(1) 100 percent, in the case of qualified plug-

5

in electric drive motor vehicle manufacturing facility 6 7 8

property which is placed in service before January 1, 2012, and

9 10 11

‘‘(2) 50 percent, in the case of qualified plug-in electric drive motor vehicle manufacturing facility property which is placed in service after December

12 13 14

31, 2011, and before January 1, 2015. ‘‘(c) E LECTION .— ‘‘(1) I N GENERAL.—An election under this section

15

for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe. ‘‘(2) E

LECTION IRREVOCABLE .—Any

election made

under this section may not be revoked except with the consent of the Secretary. ‘‘(d) Q

UALIFIED

PLUG -IN E LECTRIC D RIVE M OTOR

VEHICLE M ANUFACTURING FACILITY PROPERTY.—For purposes of this section— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(1) I N GENERAL.—The term ‘qualified plug-in

2 3 4

electric drive motor vehicle manufacturing facility property’ means any qualified property—

5

‘‘(A) the original use of which commences 6

with the taxpayer,

7

‘‘(B) which is placed in service by the tax-

8 9

payer after the date of the enactment of this sec-

10

tion and before January 1, 2015, and

11

‘‘(C) no written binding contract for the

12

construction of which was in effect on or before

13

the date of the enactment of this section. ‘‘(2)

14

Q UALIFIED PROPERTY.—

15

‘‘(A) I N GENERAL.—The term ‘qualified property’ means any property which is a facility or a portion of a facility used for the production of— ‘‘(i) any new qualified plug-in electric drive motor vehicle (as defined by section 30D(c)), or ‘‘(ii) any eligible component. ‘‘(B) E LIGIBLE COMPONENT .—The term ‘eligible component’ means any battery, any electric motor or generator, or any power control unit HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

which is designed specifically for use with a new

3

qualified plug-in electric drive motor vehicle (as

4

so defined).

5

‘‘(e) S

PECIAL

R ULE FOR D UAL U SE PROPERTY.—In the

6 7

case of any qualified plug-in electric drive motor vehicle

8

manufacturing facility property which is used to produce

9

both qualified property and other property which is not

10 11

qualified property, the amount of costs taken into account under subsection (a) shall be reduced by an amount equal

12 13

to— ‘‘(1) the total amount of such costs (determined

14 15

before the application of this subsection), multiplied by ‘‘(2) the percentage of property expected to be produced which is not qualified property. ‘‘(f) E LECTION T O R ECEIVE L OAN IN L IEU OF D EDUC TION .—

‘‘(1) I N GENERAL.—If a taxpayer elects to have this subsection apply for any taxable year— ‘‘(A) subsection (a) shall not apply to any qualified plug-in electric drive motor vehicle manufacturing facility property placed in service by the taxpayer, ‘‘(B) such taxpayer shall receive a loan HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

from the Secretary in an amount and under such

3

terms as provided in section 1303(b) of the

4

American Recovery and Reinvestment Tax Act of

5

2009, and 6

‘‘(C) in the taxable year in which such

7 8

qualified loan is repaid, each of the limitations

9

described in paragraph (2) shall be increased by

10

the qualified plug-in electric drive motor vehicle

11

manufacturing facility amount which is—

12

‘‘(i) determined under paragraph (3),

13

and

14

‘‘(ii) allocated to such limitation under

15

paragraph (4). ‘‘(2) L IMITATIONS TO BE INCREASED .—The limitations described in this paragraph are— ‘‘(A) the limitation imposed by section 38(c), and ‘‘(B) the limitation imposed by section 53(c). ‘‘(3) Q MOTOR

VEHICLE

AMOUNT .—For

UALIFIEDPLUG -INELECTRICDRIVE MANUFACTURING

FACILITY

purposes of this paragraph—

‘‘(A) I N GENERAL.—The qualified plug-in HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

electric drive motor vehicle manufacturing facil-

3

ity amount is an amount equal to the applicable

4

percentage of any qualified plug-in electric drive

5

motor vehicle manufacturing facility which is 6

placed in service during the taxable year.

7

‘‘(B) A

8 9

PPLICABLE PERCENTAGE .—For

pur-

poses of subparagraph (A), the applicable per-

10

centage is—

11

‘‘(i) 35 percent, in the case of qualified

12

plug-in electric drive motor vehicle manu-

13

facturing facility property which is placed

14

in service before January 1, 2012, and

15

‘‘(ii) 17.5 percent, in the case of qualified plug-in electric drive motor vehicle manufacturing facility property which is placed in service after December 31, 2011, and before January 1, 2015. ‘‘(C) S ERTY.—In

PECIAL RULE FOR DUAL USE PROP-

the case of any qualified plug-in elec

tric drive motor vehicle manufacturing facility property which is used to produce both qualified property and other property which is not qualified property, the amount of costs taken into acHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

count under subparagraph (A) shall be reduced

3

by an amount equal to—

4

‘‘(i) the total amount of such costs (de-

5

termined before the application of this sub6

paragraph), multiplied by

7

‘‘(ii) the percentage of property ex-

8 9

pected to be produced which is not qualified

10

property.

11

‘‘(4) A

LLOCATION OF QUALIFIED PLUG -IN ELECTRIC

12 DRIVE MOTOR VEHICLE MANUFACTURING FACILITY

13 AMOUNT .—The

taxpayer shall, at such time and in

14 15

such manner as the Secretary may prescribe, specify the portion (if any) of the qualified plug-in electric drive motor vehicle manufacturing facility amount for the taxable year which is to be allocated to each of the limitations described in paragraph (2) for such taxable year. ‘‘(5) E LECTION .— ‘‘(A) I N GENERAL.—An election under this subsection for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by HR 1 PP

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2 regulations prescribe. ‘‘(B) E

LECTION IRREVOCABLE .—Any

election

made under this subsection may not be revoked except with the consent of the Secretary.’’. (b) L OAN PROGRAM .— (1) IN GENERAL.—The Secretary of the Treasury (or the Secretary’s delegate) shall provide a loan to any person who is allowed a deduction under section 179F of the Internal Revenue Code and who makes an election under section 179F(f) of such Code in an amount equal to the qualified plug-in electric drive motor vehicle manufacturing facility amount (as defined in such section 179F(f)). (2) T ERM .—Such loan shall be in the form of a senior note issued by the taxpayer to the Secretary of the Treasury, secured by the qualified plug-in electric drive motor vehicle manufacturing facility property (as defined in section 179F of the Internal Revenue Code of 1986) of the taxpayer, and having a term of 20 years and interest payable at the applicable Federal rate (as determined under section 1274(d) of the Internal Revenue Code of 1986).

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2

1

1(3) A

2 3

is hereby appro

2priated to the Secretary of the Treasury such sums as

4

3may be necessary to carry out this subsection.

5

4(c) C LERICAL A MENDMENT .—The table of sections for

6 7

PPROPRIATIONS .—There

5 part VI of subchapter B of chapter 1 is amended by adding 6 at the end the following new item:

8 9

‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in electric drive motor vehicle and components.’’.

10

7(d) E FFECTIVE D ATE .—The amendments made by this

11

8 section shall apply to taxable years beginning after the date

12

9 of the enactment of this Act.

13 14

10 Subtitle

E—Economic Recovery

Tools

11

15

12

SEC. 1401. RECOVERY ZONE BONDS.

13(a) I N G ENERAL.—Subchapter Y of chapter 1 is 14 amended by adding at the end the following new part: 15 ‘‘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.

16 17

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

‘‘(a) A LLOCATIONS .— 18‘‘(1) I N GENERAL.—The Secretary shall allocate 19the national recovery zone economic development bond 20limitation and the national recovery zone facility 21bond limitation among the States— HR 1 PP

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2

1

‘‘(A) by allocating 1 percent of each

2 3

such limitation to each State, and

4

‘‘(B) by allocating the remainder of each

5

such limitation among the States in the propor6

tion that each State’s 2008 State employment de-

7 8

cline bears to the aggregate of the 2008 State em-

9

ployment declines for all of the States.

10 11

‘‘(2) 2008

STATE EMPLOYMENT DECLINE.—For

purposes of this subsection, the term ‘2008 State em-

12 13 14

ployment decline’ means, with respect to any State, the excess (if any) of— ‘‘(A) the number of individuals employed in

15

such State determined for December 2007, over ‘‘(B) the number of individuals employed in such State determined for December 2008. ‘‘(3) A LLOCATIONS BY STATES .— ‘‘(A) IN GENERAL.—Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion the each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

for all the counties and municipalities in such

3

State.

4

‘‘(B) L

ARGE MUNICIPALITIES .—For

purposes

5

of subparagraph (A), the term ‘large mu6

nicipality’ means a municipality with a popu-

7

lation of more than 100,000.

8 9

‘‘(C) D

10

ETERMINATION OF LOCAL EMPLOYMENT

DECLINES .—For

11

purposes of this paragraph, the

employment decline of any municipality or county

12

shall be determined in the same manner as

13

determining the State employment decline under

14

paragraph (2), except that in the case of a

15

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) N ATIONAL LIMITATIONS .— ‘‘(A) R

ECOVERY ZONE ECONOMIC DEVELOP-

MENT BONDS .—There

is a national recovery zone

economic development bond limitation of $5,000,000,000. ‘‘(B) R

ECOVERY ZONE FACILITY BONDS .—

There is a national recovery zone facility bond limitation of $10,000,000,000. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

‘‘(b) R ECOVERY Z ONE.—For purposes of this part, the term ‘recovery zone’ means—

4

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

5

significant poverty, unemployment, rate of home fore6 7

closures, or general distress, and ‘‘(2) any area for which a designation as an em-

8 9 10

powerment zone or renewal community is in effect. ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT

11 12

BONDS.

‘‘(a) IN G ENERAL.—In the case of a recovery zone eco-

13 14

nomic development bond— ‘‘(1) such bond shall be treated as a

15

qualified bond for purposes of section 6431, and ‘‘(2) subsection (b) of such section shall be applied by substituting ‘40 percent’ for ‘35 percent’. ‘‘(b) R

ECOVERY Z ONE

E CONOMIC D EVELOPMENT

B OND.— ‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

issue if—

3

‘‘(A) 100 percent of the available project

4

proceeds (as defined in section 54A) of such issue

5

are to be used for one or more qualified 6

economic development purposes, and

7

‘‘(B) the issuer designates such bond

8 9

for purposes of this section.

10 11

‘‘(2) L

IMITATION ON AMOUNT OF BONDS DES -

IGNATED .—The

maximum aggregate face amount of

12 13 14 15

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) Q POSE .—For

UALIFIED

E CONOMIC D EVELOPMENT PUR-

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4 5

educational programs. ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS.

‘‘(a) I N G ENERAL.—For purposes of part IV of subchapter B (relating to tax exemption requirements for State

6 7 8 9 10

and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. ‘‘(b) R ECOVERY Z ONE FACILITY B OND .— ‘‘(1) I N GENERAL.—For purposes of this section,

11

the term ‘recovery zone facility bond’ means any bond

12

issued as part of an issue if—

13

‘‘(A) 95 percent or more of the net proceeds

14

(as defined in section 150(a)(3)) of such issue are

15

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) L

IMITATION ON AMOUNT OF BONDS DES -

IGNATED .—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.

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2

1 2 3

‘‘(c) R

ECOVERY Z ONE

PROPERTY.—For purposes of this

section—

4

‘‘(1) I N GENERAL.—The term ‘recovery zone

5

property’ means any property to which section 168 6 7

applies (or would apply but for section 179) if— ‘‘(A) such property was acquired by the tax-

8 9

payer by purchase (as defined in section

10

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

11

of the recovery zone took effect,

12

‘‘(B) the original use of which in the recov-

13

ery zone commences with the taxpayer, and

14

‘‘(C) substantially all of the use of which is

15

in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. ‘‘(2) Q UALIFIED 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 described in section 144(c)(6)(B). ‘‘(3) S PECIAL 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) N ONAPPLICATION OF C ERTAIN R ULES .—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.’’.

1(b) C

LERICAL

A MENDMENT .—The table of parts for

2 subchapter Y of chapter 1 of such Code is amended by add 3 ing at the end the following new item: ‘‘PART III. RECOVERY ZONE BONDS .’’.

4(c) E FFECTIVE D ATE .—The amendments made by this 5 section shall apply to obligations issued after the date of 6 the enactment of this Act. 7

SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

8(a) IN G ENERAL.—Section 7871 is amended by adding 9 at the end the following new subsection: 10‘‘(f) T RIBAL E CONOMIC D EVELOPMENT B ONDS .— 11‘‘(1) A LLOCATION OF LIMITATION .— 12‘‘(A) IN GENERAL.—The Secretary shall al 13locate the national tribal economic development HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

14bond limitation among the Indian tribal govern

3

15ments in such manner as the Secretary, in con

4

16sultation with the Secretary of the Interior, de

5

17

termines appropriate.

6

18‘‘(B) N

7

ATIONAL LIMITATION .—There

is a

19national tribal economic development bond limi

8

20

tation of $2,000,000,000.

9

21‘‘(2) B

10 11

ONDS TREATED AS EXEMPT FROM TAX .—

22In the case of a tribal economic development bond—

12

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

13

24bond 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

14 15

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) T RIBAL ECONOMIC DEVELOPMENT BOND.— ‘‘(A) I N 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

a State or local government, and

2 3

‘‘(ii) which is designated by the Indian

4

tribal government as a tribal economic de-

5

velopment bond for purposes of this sub6

section.

7

‘‘(B) E

8 9

XCEPTIONS .—The

term tribal eco-

nomic development bond shall not include any

10

bond issued as part of an issue if any portion of

11

the proceeds of such issue are used to finance—

12

‘‘(i) any portion of a building in which

13

class II or class III gaming (as defined in

14

section 4 of the Indian Gaming Regulatory

15

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) L

IMITATION 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tribal economic development bond limitation

3

allocated to such government under paragraph

4

(1).’’.

5

(b) S TUDY.—The Secretary of the Treasury, or the Sec6 7

retary’s delegate, shall conduct a study of the effects of the

8

amendment made by subsection (a). Not later than 1 year

9

after the date of the enactment of this Act, the Secretary of

10 11

the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this

12 13 14 15

paragraph, including the Secretary’s recommendations regarding such amendment. (c) E

FFECTIVE

D ATE .—The amendment made by sub-

section (a) shall apply to obligations issued after the date of the enactment of this Act. SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT.

(a) INCREASE IN N ATIONAL L IMITATION .— (1) I N GENERAL.—Section 45D(f)(1) is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (C), (B) by striking ‘‘, 2007, 2008, and 2009.’’ in subparagraph (D), and inserting ‘‘and 2007,’’, and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(C) by adding at the end the following new

2 3

subparagraphs:

4

‘‘(E) $5,000,000,000 for 2008,

5

and ‘‘(F) $5,000,000,000 for 6

2009.’’.

7

(2) S

8 9 10 11

PECIAL 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

12 13 14 15

subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which— (A) submitted an allocation application with respect to calendar year 2008, and (B)(i) did not receive an allocation for such calendar year, or (ii) received an allocation for such calendar year in an amount less than the amount requested in the allocation application. (b) A LTERNATIVE M INIMUM T AX R ELIEF.— (1) IN GENERAL.—Section 38(c)(4)(B) is amended HR 1 PP

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2

1 2

by redesignating clauses (v) through (viii) as clauses

3

(vi) through (ix), respectively, and by inserting after

4

clause (iv) the following new clause:

5

‘‘(v) the credit determined under sec6

tion 45D to the extent that such credit is at-

7 8

tributable to a qualified equity investment

9

which is designated as such under section

10

45D(b)(1)(C) pursuant to an allocation of

11

the new markets tax credit limitation for

12

calendar year 2009,’’.

13

(2) E

14 15

FFECTIVE DATE .—The

amendments made by

this subsection shall apply to credits determined under section 45D of the Internal Revenue Code of 1986 in taxable years ending after the date of the enactment of this Act, and to carrybacks of such credits.

Subtitle F—Infrastructure Financing Tools PART I—IMPROVED MARKETABILITY FOR TAXEXEMPT BONDS SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAXEXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.

(a) I N G ENERAL.—Subsection (b) of section 265 is HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

amended by adding at the end the following new

3

paragraph:

4

‘‘(7) D E MINIMIS EXCEPTION FOR BONDS ISSUED

5 DURING 2009 OR 2010 .—

6

‘‘(A) IN GENERAL.—In applying paragraph

7 8

(2)(A), there shall not be taken into account tax-

9

exempt obligations issued during 2009 or 2010.

10

‘‘(B) L

11

IMITATION .—The

amount of tax-ex-

empt obligations not taken into account by reason

12

of subparagraph (A) shall not exceed 2 percent of

13

the amount determined under paragraph (2)(B).

14

‘‘(C) R

15

EFUNDINGS .—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) T

REATMENT 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

having been acquired on August 7, 1986.’’. (c) E FFECTIVE D ATE .—The amendments made by this section shall apply to obligations issued after December

5

31, 2008. 6 7

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCA

8

TION RULES FOR FINANCIAL INSTITUTIONS.

9 10

(a) I N G ENERAL.—Paragraph (3) of section 265(b)

11

(relating to exception for certain tax-exempt obligations) is

12

amended by adding at the end the following new subpara-

13

graph: 14

‘‘(G) S

15

PECIAL 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) Q

UALIFIED

501(C)(3)

BONDS

TREATED AS ISSUED BY EXEMPT ORGANIZA TION .—In

the case of a qualified 501(c)(3)

bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be

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2

1 2

applied by treating the 501(c)(3) organiza-

3

tion for whose benefit such bond was issued

4

as the issuer.

5

‘‘(iii) S

PECIAL RULE FOR QUALIFIED

6 FINANCINGS .—In

7

the case of a qualified fi-

8

nancing issue issued during 2009 or 2010—

9

‘‘(I) subparagraph (F) shall not apply, and

10

‘‘(II) any obligation issued as a

11

part of such issue shall be treated as a

12

qualified tax-exempt obligation if the

13

requirements of this paragraph are met

14

with respect to each qualified portion

15

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) Q

UALIFIED 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

or more ultimate borrowers each of whom is

3

a qualified borrower.

4

‘‘(v) Q

UALIFIED PORTION .—For

pur-

5

poses of this subparagraph, the term ‘quali6

fied portion’ means that portion of the pro-

7 8

ceeds which are used with respect to each

9

qualified borrower under the issue.

10

‘‘(vi) Q

11

UALIFIED

BORROWER .—For

purposes of this subparagraph, the term

12

‘qualified borrower’ means a borrower

13

which is a State or political subdivision

14

thereof or an organization described in sec-

15

tion 501(c)(3) and exempt from taxation under section 501(a).’’. (b) E FFECTIVE D ATE .—The amendment made by this section shall apply to obligations issued after December 31, 2008.

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2

1 2

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE

3

MINIMUM TAX LIMITATIONS ON TAX-EXEMPT

4 5 6

BONDS.

(a) I NTEREST ON PRIVATE A CTIVITY B ONDS ISSUED D URING 2009

AND

2010 N

OT

T REATED AS T AX PREFERENCE

7 8 9

ITEM .—Subparagraph (C) of section 57(a)(5) is amended by adding at the end a new clause: ‘‘(vi) E

10 11

XCEPTION FOR BONDS ISSUED IN

2009 AND 2010 .—For

12

purposes of clause (i),

the term ‘private activity bond’ shall not

13

include any bond issued after December 31,

14

2008, and before January 1, 2011. For

15

purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).’’. (b) N O A DJUSTMENT TO A DJUSTED C URRENT E ARNINGS FOR INTEREST

ON

T AX-E XEMPT B ONDS ISSUED D URING 2009

AND

2010.—Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: ‘‘(iv) T

AX

EXEMPT

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INTEREST

2

1 2

ON BONDS ISSUED IN 2009 AND 2010 .—Clause

3

shall not apply in the case of any interest on

4

(i)

a bond issued after December 31, 2008,

5

and before January 1, 2011. For purposes 6

of the preceding sentence, a refunding bond

7 8

(whether a current or advance refunding)

9

shall be treated as issued on the date of the

10

issuance of the refunded bond (or in the case

11

of a series of refundings, the original

12

bond).’’.

13 14 15

(c) E FFECTIVE D ATE .—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 G ENERAL.—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) E FFECTIVE D ATE .—The amendment made by this section shall apply to bonds issued after the date of the enactment of this Act.

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2

1

PART II—DELAY IN APPLICATION OF WITH-

2 3 4

HOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX

5

ON GOVERNMENT CONTRACTORS.

6

Subsection (b) of section 511 of the Tax Increase Pre7 8 9 10

vention and Reconciliation Act of 2005 is amended by striking ‘‘December 31, 2010’’ and inserting ‘‘December 31, 2011’’.

11

PART III—TAX CREDIT BONDS FOR SCHOOLS

12

SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.

13

(a) IN G ENERAL.—Subpart I of part IV of subchapter A

14 15

of chapter 1 is amended by adding at the end the following new section: ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

‘‘(a) Q UALIFIED S CHOOL C ONSTRUCTION B OND .—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

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2

1 2

proceeds of such issue,

3 4

‘‘(2) the bond is issued by a State or local government within the jurisdiction of which such school

5

is located, and 6

‘‘(3) the issuer designates such bond for

7 8

purposes of this section.

9

‘‘(b) L

10 11

IMITATION ON

IGNATED .—The

A MOUNT OF B ONDS D ES -

maximum aggregate face amount of bonds

issued during any calendar year which may be designated

12 13 14 15

under subsection (a) by any issuer shall not exceed the limitation amount allocated under subsection (d) for such calendar year to such issuer. ‘‘(c) N

ATIONAL

L IMITATION ON A MOUNT OF B ONDS

D ESIGNATED .—There is a national qualified school construction bond limitation for each calendar year. Such limitation is— ‘‘(1) $5,000,000,000 for 2009, ‘‘(2) $5,000,000,000 for 2010, and ‘‘(3) except as provided in subsection (e), zero after 2010. ‘‘(d) L IMITATION A LLOCATED A MONG S TATES .— ‘‘(1) I N GENERAL .—The

limitation applicable under subsection

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2

1 2

(c) for any calendar year shall be allocated by the

3

Secretary among the States in proportion to the

4

respective numbers of children in each State who

5

have attained age 5 but not age 18 for the most recent 6 7

fiscal year ending before such calendar year. The

8

limitation amount allocated to a State under the

9

preceding sentence shall be allocated by the State to

10

issuers within such State.

11

‘‘(2) M INIMUM ALLOCATIONS TO STATES .—

12

‘‘(A) IN GENERAL.—The Secretary shall ad13

just the allocations under this subsection for any

14

calendar year for each State to the extent nec-

15

essary to ensure that the amount allocated to such State under this subsection for such year is not less than an amount equal to such State’s adjusted minimum percentage of the amount to be allocated under paragraph (1) for the calendar year. ‘‘(B) M

INIMUM PERCENTAGE .—A

State’s

minimum percentage for any calendar year is equal to the product of— ‘‘(i) the quotient of— ‘‘(I) the amount the State is eligible HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to receive under section 1124(d) of the

3

Elementary and Secondary Education

4

Act of 1965 (20 U.S.C. 6333(d)) for the

5

most recent fiscal year ending before 6

such calendar year, divided by

7 8

‘‘(II) the amount all States are el-

9

igible to receive under section 1124 of 10

such Act (20 U.S.C. 6333) for such fis-

11

cal year, multiplied by ‘‘(ii) 100.

12

‘‘(3) A

13 14 15

LLOCATIONS 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) A

LLOCATIONS FOR INDIAN SCHOOLS .—In

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2

1 2

addition to the amounts otherwise allocated under

3

this subsection, $200,000,000 for calendar year 2009,

4

and $200,000,000 for calendar year 2010, shall be al-

5

located by the Secretary of the Interior for purposes 6 7

of the construction, rehabilitation, and repair of

8

schools funded by the Bureau of Indian Affairs. In the

9

case of amounts allocated under the preceding sen

10 11

tence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for

12 13 14 15

purposes of this subchapter. ‘‘(e) C ARRYOVER OF U NUSED L IMITATION .—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) C ONFORMING A MENDMENTS .— (1) Paragraph (1) of section 54A(d) is amended HR 1 PP

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2 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

1inserting ‘‘, and’’, and by adding at the end the fol 2

lowing new clause: 3‘‘(v) in the case of a qualified school 4construction bond, a purpose specified in

5

section 54F(a)(1).’’. 6(3) The table of sections for subpart I of part IV 7of subchapter A of chapter 1 is amended by adding

8

at the end the following new item: ‘‘Sec. 54F. Qualified school construction bonds.’’.

9(c) E FFECTIVE D ATE .—The amendments made by this 10 section shall apply to obligations issued after the date of 11 the enactment of this Act. 12

SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED

13

ZONE ACADEMY BONDS.

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2 14(a) I N G ENERAL.—Section 54E(c)(1) is amended by 15 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 for 16 2009 and 2010’’. 17(b) E FFECTIVE D ATE .—The amendment made by this 18 section shall apply to obligations issued after December 31, 19 2008. 20 PART IV—BUILD AMERICA BONDS 21

SEC. 1531. BUILD AMERICA BONDS.

22(a) IN G ENERAL.—Part IV of subchapter A of chapter 23 1 is amended by adding at the end the following new sub 24 part:

1 ‘‘Subpart J—Build America Bonds ‘‘Sec. 54AA. Build America bonds.

2

‘‘SEC. 54AA. BUILD AMERICA BONDS.

3‘‘(a) IN G ENERAL.—If a taxpayer holds a build Amer 4 ica bond on one or more interest payment dates of the bond 5 during any taxable year, there shall be allowed as a credit 6 against the tax imposed by this chapter for the taxable year 7 an amount equal to the sum of the credits determined under 8 subsection (b) with respect to such dates. 9‘‘(b) A MOUNT OF C REDIT .—The amount of the credit 10 determined under this subsection with respect to any inter 11 est payment date for a build America bond is 35 percent 12 of the amount of interest payable by the issuer with respect HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

13 to such date (40 percent in the case of an issuer described

3

14 in section 148(f)(4)(D) (determined without regard to

4

15 clauses (v), (vi), and (vii) thereof and by substituting

5

16 ‘$30,000,000’ for ‘$5,000,000’ each place it appears there

6

17 in).

7

18‘‘(c) L IMITATION B ASED ON A MOUNT OF T AX.—

8

19‘‘(1) I N GENERAL.—The credit allowed under 9

20subsection (a) for any taxable year shall not exceed

10 11

21

the excess of—

12

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

13

23defined in section 26(b)) plus the tax imposed by

14

24

section 55, over

15

‘‘(B) the sum of the credits allowable under this part (other than subpart C and this subpart). ‘‘(2) C

ARRYOVER 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) B UILD A MERICA B OND .— ‘‘(1) IN GENERAL.—For purposes of this section, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the term ‘build America bond’ means any obligation

3

(other than a private activity bond) if—

4

‘‘(A) the interest on such obligation would

5

(but for this section) be excludable from gross in6

come under section 103,

7

‘‘(B) such obligation is issued before Janu-

8 9

ary 1, 2011, and

10

‘‘(C) the issuer makes an irrevocable

11

election to have this section apply.

12

‘‘(2) A

13 14

PPLICABLE RULES .—For

purposes of ap-

plying paragraph (1)— ‘‘(A) for purposes of section 149(b), a build

15

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 preHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

mium over the stated principal amount of the

3

bond.

4

‘‘(e) INTEREST PAYMENT D ATE .—For purposes of this

5

section, the term ‘interest payment date’ means any date 6 7 8 9

on which the holder of record of the build America bond is entitled to a payment of interest under such bond. ‘‘(f) S PECIAL R ULES .—

10 11 12

‘‘(1) I NTEREST ON BUILD AMERICA BONDS IN CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES .—For

purposes of this title, interest on any

13 14

build America bond shall be includible in gross

15

income.

‘‘(2) A

PPLICATION 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) S PECIAL R ULE FOR Q UALIFIED B ONDS ISSUED B EFORE 2011.—In the case of a qualified bond issued before January 1, 2011— ‘‘(1) I SSUER ALLOWED REFUNDABLE CREDIT .— In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

allowed a credit as provided in section 6431.

3 4

‘‘(2) Q

UALIFIED BOND .—For

purposes of this

subsection, the term ‘qualified bond’ means any build

5

America bond issued as part of an issue if— 6

‘‘(A) 100 percent of the available project

7 8

proceeds (as defined in section 54A) of such issue

9

are to be used for capital expenditures, and

10

‘‘(B) the issuer makes an irrevocable elec-

11

tion to have this subsection apply.

12 13 14 15

‘‘(h) R

EGULATIONS .—The

Secretary may prescribe

such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.’’. (b) C

REDIT FOR

Q UALIFIED B ONDS ISSUED B EFORE

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) I N G ENERAL.—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) P AYMENT OF C REDIT .—The Secretary shall pay HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date (40 percent in the case of an issuer described in section 148(f)(4)(D) (determined without regard to clauses (v), (vi), and (vii) thereof and by substituting ‘$30,000,000’ for ‘$5,000,000’ each place it appears therein). ‘‘(c) A

PPLICATION OF A RBITRAGE

R ULES .—For purposes

of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. ‘‘(d) INTEREST PAYMENT D ATE .—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) Q

UALIFIED

B OND .—For purposes of this sub-

section, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).’’.

1

(c) C ONFORMING A MENDMENTS .— 2(1) Section 1324(b)(2) of title 31, United States 3Code, is amended by striking ‘‘or 6428’’ and inserting

4

‘‘6428, or 6431,’’. HR 1 PP

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2

1

5(2) Section 54A(c)(1)(B) is amended by striking

2 3

6‘‘subpart C’’ and inserting ‘‘subparts C and J’’.

4

7(3) Sections 54(c)(2), 1397E(c)(2), and

5 6

81400N(l)(3)(B) are each amended by striking ‘‘and I’’ 9

and inserting ‘‘, I, and J’’.

7

10(4) Section 6401(b)(1) is amended by striking

8

11

‘‘and I’’ and inserting ‘‘I, and J’’.

9

12(5) The table of subparts for part IV of sub

10

13chapter A of chapter 1 is amended by adding at the

11 12

14

end the following new item: ‘‘Subpart J. Build America bonds.’’.

13 14

15(6) The table of section for subchapter B of chap

15

16ter 65 is amended by adding at the end the following 17

new item:

‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’.

18(d) T

RANSITIONAL

C OORDINATION W ITH S TATE

19 L AW .—Except as otherwise provided by a State after the 20 date of the enactment of this Act, the interest on any build 21 America bond (as defined in section 54AA of the Internal 22 Revenue Code of 1986, as added by this section) and the 23 amount of any credit determined under such section with 24 respect to such bond shall be treated for purposes of the in come tax laws of such State as being exempt from Federal income tax. (e) E FFECTIVE D ATE .—The amendments made by this HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

section shall apply to obligations issued after the date of

3

the enactment of this Act.

4 5 6 7

Subtitle G—Economic Recovery Payments to Certain Individuals SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS

8

OF SOCIAL SECURITY, SUPPLEMENTAL SECU

9

RITY INCOME, RAILROAD RETIREMENT BENE

10

FITS, AND VETERANS DISABILITY COMPENSA

11 12

TION OR PENSION BENEFITS.

(a) A UTHORITY TO M AKE PAYMENTS .—

13

(1) E LIGIBILITY.—

14

(A) I N GENERAL.—Subject to paragraph

15

(5)(B), the Secretary of the Treasury shall make a $300 payment to each individual who, for any month during the 3-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act, is entitled to a benefit payment described in clause (i), (ii), or (iii) of subparagraph (B) or is eligible for a SSI cash benefit described in subparagraph (C). (B) B

ENEFIT PAYMENT DESCRIBED .—For

purposes of subparagraph (A): HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(i) T ITLE II BENEFIT .—A benefit payment

2 3

described in this clause is a monthly

4

insurance benefit payable (without regard

5

to sections 202(j)(1) and 223(b) of the Social 6

Security Act (42 U.S.C. 402(j)(1), 423(b))

7

under—

8 9

(I) section 202(a) of such Act (42

10

U.S.C. 402(a));

11

(II) section 202(b) of such Act (42

12

U.S.C. 402(b));

13

(III) section 202(c) of such Act

14

(42 U.S.C. 402(c));

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

U.S.C. 423(a));

2 3

(X) section 227 of such Act (42

4

U.S.C. 427); or

5

(XI) section 228 of such Act (42 6

U.S.C. 428).

7

(ii) R

8 9

AILROAD RETIREMENT BENEFIT .—A

benefit payment described in this clause is a

10

monthly annuity or pension payment

11

payable (without regard to section 5(a)(ii)

12

of the Railroad Retirement Act of 1974 (45

13

U.S.C. 231d(a)(ii)) under—

14

(I) section 2(a)(1) of such Act (45

15

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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(45 U.S.C. 231a(d)(1)(iv));

2 3

(VII) section 2(d)(1)(v) of such Act

4

(45 U.S.C. 231a(d)(1)(v)); or

5

(VIII) section 7(b)(2) of such Act 6

(45 U.S.C. 231f(b)(2)) with respect to

7 8

any of the benefit payments described

9

in clause (i) of this subparagraph.

10

(iii) V ETERANS BENEFIT .—A benefit

11

payment described in this clause is a com-

12

pensation or pension payment payable

13

under—

14

(I) section 1110, 1117, 1121,

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

described in paragraph (2), (3), (4)(A)(ii),

3

or (5) of section 101, title 38, United States

4

Code, who received that ben efit during any

5

month within the 3 month period ending 6

with the month which ends prior to the

7 8

month that includes the date of the

9

enactment of this Act.

10

(C) SSI

11

CASH BENEFIT DESCRIBED .—A

SSI cash benefit described in this subparagraph

12

is a cash benefit payable under section 1611

13

(other than under subsection (e)(1)(B) of such

14

section) or 1619(a) of the Social Security Act (42

15

U.S.C. 1382, 1382h). (2) R

EQUIREMENT .—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) N O DOUBLE PAYMENTS .—An individual shall be HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

paid only 1 payment under this section, regardless of

3

whether the individual is entitled to, or eligible for,

4

more than 1 benefit or cash payment described in

5

paragraph (1). 6

(4) L

7 8

IMITATION .—A

payment under this section

shall not be made—

9

(A) in the case of an individual entitled to a

10

benefit specified in paragraph (1)(B)(i) or

11

paragraph (1)(B)(ii)(VIII) if, for the most recent

12

month of such individual’s entitlement in the 3-

13

month period described in paragraph (1), such

14

individual’s benefit under such paragraph was

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

title 38, United States Code;

2 3

(C) in the case of an individual entitled to a

4

benefit specified in paragraph (1)(C) if, for such

5

most recent month, such individual’s benefit 6

under such paragraph was not payable by reason

7 8

of subsection (e)(1)(A) or (e)(4) of section 1611

9

(42 U.S.C. 1382) or section 1129A of such Act

10

(42 U.S.C. 1320a-8a); or

11

(D) in the case of any individual whose date

12

of death occurs before the date on which the

13

individual is certified under subsection (b) to re-

14

ceive a payment under this section.

15

(5) T IMING AND MANNER OF PAYMENTS .— (A) I N GENERAL.—The Secretary of the Treasury shall commence making payments under this section at the earliest practicable date but in no event later than 120 days after the date of enactment of this Act. The Secretary of the Treasury may make any payment electronically to an individual in such manner as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of paraHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

graph (1).

3

(B) D

4

EADLINE.—No

payments shall be made

under this section after December 31, 2010,

5

regardless of any determinations of entitlement 6

to, or eligibility for, such payments made after

7

such date.

8 9 10 11

(b) I DENTIFICATION OF R ECIPIENTS .—The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall certify the indi-

12 13 14 15

viduals 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) T REATMENT OF PAYMENTS .— (1) P AYMENT TO BE DISREGARDED FOR PUR POSES 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the recipient (or the recipient’s spouse or family) for

3

benefits or assistance, or the amount or extent of

4

benefits or assistance, under any Federal program or

5

under any State or local program financed in whole or 6 7

in part with Federal funds. (2) P AYMENT NOT CONSIDERED INCOME FOR

8 9 10 11

PURPOSES OF TAXATION .—A

payment under subsection

(a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986.

12

(3) PAYMENTS PROTECTED FROM ASSIGNMENT .— The

13 14 15

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) P AYMENTS 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 HR 1 PP

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2

1 2

payment or cash benefit made under the applicable

3

program described in subparagraph (B) or (C) of sub-

4

section (a)(1) and all amounts paid shall be subject to

5

offset to collect delinquent debts. 6 7 8

(d) P AYMENT TO R EPRESENTATIVE PAYEES AND FIDUCIARIES .—

9 10 11

(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 de-

12 13 14 15

scribed 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) A PPLICABILITY.— (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

under title II or XVI of such Act.

2 3

(B) P AYMENT ON THE BASIS OF A RAILROAD

4

RETIREMENT BENEFIT .—Section

13 of the Railroad

5

Retirement Act (45 U.S.C. 231l) shall apply to 6

any payment made on the basis of an entitlement

7 8

to a benefit specified in paragraph (1)(B)(ii) of

9

subsection (a) in the same manner as such

10

section applies to a payment under such Act.

11

(C) P AYMENT ON THE BASIS OF A VETERANS

12 BENEFIT .—Sections

13

5502, 6106, and 6108 of title

38, United States Code, shall apply to any

14

payment made on the basis of an entitle ment to a

15

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) A PPROPRIATION .—Out of any sums in the Treasury of the United States not otherwise appropriated, the following sums are appropriated for the period of fiscal years 2009 and 2010 to carry out this section: (1) For the Secretary of the Treasury— (A) such sums as may be necessary to make payments under this section; and (B) $57,000,000 for administrative costs inHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

curred in carrying out this section and section

3

36A of the Internal Revenue Code of 1986 (as

4

added by this Act).

5

(2) For the Commissioner of Social Security, 6 7

$90,000,000 for the Social Security Administration’s

8

Limitation on Administrative Expenses for costs in-

9

curred in carrying out this section.

10 11

(3) For the Railroad Retirement Board, $1,000,000 for administrative costs incurred in car-

12 13

rying out this section. (4) For the Secretary of Veterans Affairs,

14 15

$100,000 for the Information Systems Technology account and $7,100,000 for the General Operating Ex penses account for administrative costs incurred in carrying out this section.

Subtitle H—Trade Adjustment Assistance SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUST MENT ASSISTANCE PROGRAM.

(a) A SSISTANCE FOR W ORKERS .— (1) I N GENERAL.—Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking ‘‘December 31, 2007’’ and inserting ‘‘December 31, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

2010’’.

3 4

(2) A

LTERNATIVE TRADE ADJUSTMENT ASSIST -

ANCE .—Section

246(b)(1) of the Trade Act of 1974 (19

5

U.S.C. 2318(b)(1)) is amended by striking ‘‘5 years’’ 6 7 8 9 10 11

and inserting ‘‘7 years’’. (b) A

SSISTANCE FOR

FIRMS .—Section 256(b) of the

Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking ‘‘2007, and $4,000,000 for the 3-month period beginning on October 1, 2007,’’ and inserting ‘‘December 31,

12 13 14 15

2010’’. (c) A SSISTANCE FOR FARMERS .—Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking ‘‘through 2007’’ and all that follows through the end period and inserting ‘‘through December 31, 2010 to carry out the purposes of this chapter.’’. (d) E

XTENSION OF T ERMINATION

D ATES .—Section 285

of the Trade Act of 1974 (19 U.S.C. 2271 note) is amended by striking ‘‘December 31, 2007’’ each place it appears and inserting ‘‘December 31, 2010’’. (e) S ENSE OF THE S ENATE R EGARDING A DJUSTMENT A SSISTANCE FOR C OMMUNITIES .—It is the sense of the Senate that title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) should be amended to assist any community impacted HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

by trade with economic adjustment through—

3 4

(1) the coordination of efforts by State and local governments and economic organizations;

5

(2) the coordination of Federal, State, and local 6 7

resources; (3) the creation of community-based development

8 9

strategies; and

10 11

(4) the development and provision of training programs.

12 13 14

(f) E FFECTIVE D ATE .—The amendments made by this section shall be effective as of January 1, 2008.

15

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2

1 2

Subtitle I—Prohibition on Collection

3

of Certain Payments Made Under the Continued Dumping and Subsidy

4 5

Offset Act of 2000

6 SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAY

7 MENTS MADE UNDER THE CONTINUED DUMP

8

ING AND SUBSIDY OFFSET ACT OF 2000.

9 10 11 12

(a) I N G ENERAL.—Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may—

13

(1) require repayment of, or attempt in any other 14 15

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) P AYMENTS D ESCRIBED .—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 HR 1 PP

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2

1 2

Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title

3

VII of the Deficit Reduction Act of 2005 (Public Law 109–

4

171; 120 Stat. 154))) that were—

5

(1) assessed and paid on imports of goods from 6 7 8

countries that are parties to the North American Free Trade Agreement; and

9 10 11

(2) distributed on or after January 1, 2001, and before January 1, 2006. (c) PAYMENT OF FUNDS C OLLECTED OR W ITHHELD .—

12 13 14 15

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) L IMITATION .—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 subHR 1 PP

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1 2

section (b) as a result of—

3 4

(1) a finding of false statements or other misconduct by a recipient of such a payment; or

5 6

(2) the reliquidation of an entry with respect to

7 8

which such a payment was made.

9 10

Subtitle J—Other Provisions SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS

11

TO PROJECTS FINANCED WITH CERTAIN TAX-

12 FAVORED BONDS.

13 14 15

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) HR 1 PP

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2

1 2

issued after the date of the enactment of this Act,

3 4

(4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code

5

of 1986), and 6

(5) any recovery zone economic development

7 8

bond (as defined in section 1400U–2 of the Internal

9

Revenue Code of 1986).

10 11 12

SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar

13 14 15

limitation contained in such subsection and inserting ‘‘$12,140,000,000,000’’. SEC. 1903. ELECTION TO ACCELERATE THE LOW-INCOME HOUSING TAX CREDIT.

(a) IN G ENERAL.—At the election of the taxpayer, the credit determined under section 42 of the Internal Revenue Code of 1986 for the taxpayer’s first three taxable years beginning after December 31, 2008, in which credits are allowable for any non-federally subsidized low-income housing project initially placed in service after such date—

(1) with respect to initial investments made pursuant to a binding agreement by such taxpayer after HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

December 31, 2008, and before January 1, 2011, and

3

(2) only from allocations of a State housing

4

credit ceiling before 2011, shall be 200 percent of

5

the amount which would (but for this subsection) be 6 7 8 9 10 11

so allowable. (b) E

LIGIBILITY FOR

E LECTION .—The election under

subsection (a) shall take effect with respect to the first tax able year referred to in such subsection only when all rental requirements pursuant to section 42(g)(1) of the

12 13 14 15

Internal Revenue Code of 1986 have been met with respect to such low-income housing project. (c) R

EDUCTION IN

A GGREGATE C REDIT TO R EFLECT

A CCELERATED C REDIT .—The aggregate credit allowable to any taxpayer under section 42 of the Internal Revenue Code of 1986 with respect to any investment for taxable years after the first three taxable years referred to in subsection (a) shall be reduced on a pro rata basis by the amount of the increased credit allowable by reason of subsection (a) with respect to such first three taxable years. The preceding sentence shall not be construed to affect whether any taxable year is part of the credit, compliance, or extended use periods under such section 42.

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2

1 2 3 4

(d) E

LECTION .—The

election under subsection (a)

shall be made at the time and in the manner prescribed by the Secretary of the Treasury or the Secretary’s delegate,

5

and, once made, shall be irrevocable. In the case of a part6 7

nership, such election shall be made by the partnership.

8 9 10 11 12 13 14 15

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2 1

TITLE II—ASSISTANCE FOR UN 2 EMPLOYED

3 STRUGGLING 4

WORKERS AND

FAMILIES

SEC. 2000. SHORT TITLE; TABLE OF CONTENTS.

5(a) S HORT T ITLE.—This title may be cited as the ‘‘As 6 sistance for Unemployed Workers and Struggling Families 7 Act’’. 8(b) T

ABLE OF C ONTENTS .—The

table of contents for

9 this title is as follows: TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES Sec. 2000. Short title; table of contents. Subtitle A—Unemployment Insurance Sec. 2001. Extension of emergency unemployment compensation program. Sec. 2002. Increase in unemployment compensation benefits. Sec. 2003. Unemployment compensation modernization. Sec. 2004. Temporary assistance for States with advances. Subtitle B—Assistance for Vulnerable Individuals Sec. 2101. Emergency fund for TANF program. Sec. 2102. Extension of TANF supplemental grants. Sec. 2103. Clarification of authority of states to use tanf funds carried over from prior years to provide tanf benefits and services. Sec. 2104. Temporary reinstatement of authority to provide Federal matching payments for State spending of child support incentive payments.

10 Subtitle

A—Unemployment Insurance

11 12

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT

13 COMPENSATION PROGRAM. 14(a) IN G ENERAL.—Section 4007 of the Supplemental 15 Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

4

16 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

5

appears and inserting ‘‘December 31, 2009’’;

3

6

(2) in the heading for subsection (b)(2), by strik-

7

ing ‘‘M

ARCH 31 , 2009 ’’

and inserting ‘‘D

ECEMBER 31 ,

8 9

2009 ’’;

and

(3) in subsection (b)(3), by striking ‘‘August 27,

10 11

2009’’ and inserting ‘‘May 31, 2010’’.

12

(b) FINANCING PROVISIONS .—Section 4004 of such Act

13

is amended by adding at the end the following:

14 15

‘‘(e) T

RANSFER 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

account (as established by section 901 of the Social

3

Security Act) such sums as the Secretary of Labor es

4

timates to be necessary for purposes of assisting

5

States in meeting administrative costs by reason of 6 7

the amendments referred to in paragraph (1).

8

There are appropriated from the general fund of the Treas-

9

ury, without fiscal year limitation, the sums referred to in the

10

preceding sentence and such sums shall not be required to

11

be repaid.’’.

12 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION

13 BENEFITS.

14 15

(a) FEDERAL -S TATE A GREEMENTS .—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 A GREEMENT .— (1) A

DDITIONAL 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

extent that they would be determined if the State law

3

of the State were applied, with respect to any week for

4

which the individual is (disregarding this section)

5

otherwise entitled under the State law to receive reg 6 7

ular compensation, as if such State law had been

8

modified in a manner such that the amount of regular

9

compensation (including dependents’ allowances)

10 11

payable for any week shall be equal to the amount determined under the State law (before the application

12 13

of this paragraph) plus an additional $25. (2) A

14 15

LLOWABLE 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) N ONREDUCTION R ULE.—An agreement under this section shall not apply (or shall cease to apply) with HR 1 PP

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1

2

2

respect to a State upon a determination by the Secretary

3

that the method governing the computation of regular

4

compensation under the State law of that State has been

5

modified in a manner such that— 6

(1) the average weekly benefit amount of regular

7 8

compensation which will be payable during the period

9

of the agreement (determined disregarding any addi-

10 11

tional amounts attributable to the modification described in subsection (b)(1)) will be less than

12

(2) the average weekly benefit amount of regular

13 14 15

compensation which would otherwise have been payable during such period under the State law, as in effect on December 31, 2008. (d) PAYMENTS TO S TATES .— (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 HR 1 PP

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2

1 2

(ii) any additional administrative ex-

3

penses incurred by the State by reason of

4

such agreement (as determined by the Sec-

5

retary). 6

(B) T

7

ERMS OF PAYMENTS .—Sums

payable to

8

any State by reason of such State’s having an

9

agreement under this section shall be payable, ei-

10

ther in advance or by way of reimbursement (as

11

determined by the Secretary), in such amounts as

12

the Secretary estimates the State will be entitled

13

to receive under this section for each calendar

14

month, reduced or increased, as the case may be,

15

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) C

ERTIFICATIONS .—The

Secretary shall from

time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

State under this section.

3 4

(3) A

PPROPRIATION .—There

are appropriated

from the general fund of the Treasury, without fiscal

5

year limitation, such sums as may be necessary for 6 7 8

purposes of this subsection. (e) A PPLICABILITY.— (1) I N GENERAL.—An agreement entered into

9 10 11

under this section shall apply to weeks of unemployment—

12

(A) beginning after the date on which such

13 14

agreement is entered into; and

15

(B) ending before January 1, 2010. (2) T RANSITION RULE FOR INDIVIDUALS REMAIN ING 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

respect to such benefit year.

3 4

(3) T

ERMINATION .—Notwithstanding

any other

provision of this subsection, no additional compensa-

5

tion (as described in subsection (b)(1)) shall be pay6 7

able for any week beginning after June 30, 2010.

8

(f) F RAUD AND O VERPAYMENTS .—The provisions of

9

section 4005 of the Supplemental Appropriations Act, 2008

10

(Public Law 110–252; 122 Stat. 2356) shall apply with re-

11

spect to additional compensation (as described in

12 13 14 15

subsection (b)(1)) to the same extent and in the same manner as in the case of emergency unemployment compensation. (g) A

PPLICATION TO

O THER U NEMPLOYMENT B ENEFITS .—

(1) I N 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) E LIGIBILITY AND TERMINATION RULES .—Additional compensation (as described in subsection HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(b)(1))—

3

(A) shall not be payable, pursuant to this

4

subsection, with respect to any unemployment

5

benefits described in subsection (i)(3) for any 6

week beginning on or after the date specified in

7 8

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

9

dividual who was eligible to receive additional

10

compensation (as so described) in connection

11

with any regular compensation or any unem-

12

ployment benefits described in subsection (i)(3)

13

for any period of unemployment ending before

14

such date; and

15

(B) shall in no event be payable for any week beginning after the date specified in subsection (e)(3). (h) D

ISREGARD OF A DDITIONAL

C OMPENSATION FOR

PURPOSES OF M EDICAID AND SCHIP.—A State that enters into an agreement under this section shall disregard the monthly equivalent of $25 per week for any individual who receives additional compensation under subsection (b)(1) in considering the amount of income of the individual for any purposes under the Medicaid program under title XIX of the Social Security Act and the State Children’s Health HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3

Insurance Program under title XXI of such Act. (i) D EFINITIONS .—For purposes of this section—

4 5

(1) the terms ‘‘compensation’’, ‘‘regular compensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State

6 7

agency’’, ‘‘State law’’, and ‘‘week’’ have the

8

respective meanings given such terms under section

9

205 of the Federal- State Extended Unemployment

10

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

11

(2) the term ‘‘emergency unemployment com-

12

pensation’’ means emergency unemployment com13 14 15

pensation 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 HR 1 PP

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2

1

Secretary.

2 3

SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZA

4 5

TION.

(a) IN G ENERAL.—Section 903 of the Social Security

6

Act (42 U.S.C. 1103) is amended by adding at the end the 7 8

following: ‘‘Special Transfers for Modernization

9 10

‘‘(f)(1)(A) In addition to any other amounts, the Sec-

11

retary of Labor shall provide for the making of unemploy-

12

ment compensation modernization incentive payments

13

(hereinafter ‘incentive payments’) to the accounts of the 14 15

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, HR 1 PP

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2

1 2 3 4

2008, under the provisions of subsection (a). ‘‘(C) Of the maximum incentive payment determined under subparagraph (B) with respect to a State—

5

‘‘(i) one-third shall be transferred to the account 6 7

of such State upon a certification under paragraph

8

(4)(B) that the State law of such State meets the re-

9

quirements of paragraph (2); and

10 11

‘‘(ii) the remainder shall be transferred to the account of such State upon a certification under para-

12 13 14 15

graph (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 HR 1 PP

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2

1 2

calendar quarter. ‘‘(3) The State law of a State meets the

3

requirements of this paragraph if such State law includes

4

provisions to carry out at least 2 of the following

5

subparagraphs: 6

‘‘(A) An individual shall not be denied regular

7 8

unemployment compensation under any State law

9

provisions relating to availability for work, active

10 11

search for work, or refusal to accept work, solely because such individual is seeking only part-time (and

12 13 14 15

not full-time) work, except that the State law provisions carrying out this subparagraph may exclude an individual if a majority of the weeks of work in such individual’s base period do not include part-time work. ‘‘(B) An individual shall not be disqualified from regular unemployment compensation for separating from employment if that separation is for any compelling family reason. For purposes of this sub paragraph, 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 indiHR 1 PP

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2

1 2

vidual reasonably to believe that such individ-

3

ual’s continued employment would jeopardize the

4

safety of the individual or of any member of the

5

individual’s immediate family (as defined by the 6

Secretary of Labor).

7

‘‘(ii) The illness or disability of a member of

8 9

the individual’s immediate family (as defined by

10

the Secretary of Labor).

11

‘‘(iii) The need for the individual to accom-

12

pany such individual’s spouse—

13

‘‘(I) to a place from which it is im-

14

practical for such individual to commute;

15

and ‘‘(II) due to a change in location of the spouse’s employment. ‘‘(C) Weekly unemployment compensation is payable under this subparagraph to any individual who is unemployed (as determined under the State unemployment compensation law), has exhausted all rights to regular unemployment compensation under the State law, and is enrolled and making satisfactory progress in a State-approved training program or in a job training program authorized under the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Workforce Investment Act of 1998. Such programs

3

shall prepare individuals who have been separated

4

from a declining occupation, or who have been invol-

5

untarily and indefinitely separated from employment 6 7

as a result of a permanent reduction of operations at

8

the individual’s place of employment, for entry into a

9

high-demand occupation. The amount of unemploy-

10 11

ment compensation payable under this subparagraph to an individual for a week of unemployment shall be

12 13 14 15

equal to the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year, and the total amount of unemployment compensation payable under this subparagraph to any individual shall be equal to at least 26 times the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year. ‘‘(D) Dependents’ allowances are provided, in the case of any individual who is entitled to receive regular unemployment compensation and who has any dependents (as defined by State law), in an amount equal to at least $15 per dependent per week, subject to any aggregate limitation on such allowances which HR 1 PP

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2

1 2

the State law may establish (but which aggregate lim-

3

itation on the total allowance for dependents paid to

4

an individual may not be less than $50 for each week

5

of unemployment or 50 percent of the individual’s 6 7

weekly benefit amount for the benefit year, whichever

8

is less).

9

‘‘(4)(A) Any State seeking an incentive payment under

10

this subsection shall submit an application therefor at such

11

time, in such manner, and complete with such information

12 13 14 15

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 HR 1 PP

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2

1 2

which are subject to discontinuation) meet the require

3

ments of paragraph (2) or (3), as the case may be, the Sec-

4

retary of Labor shall thereupon make a certification to that

5

effect to the Secretary of the Treasury, together with a cer6 7

tification as to the amount of the incentive payment to be

8

transferred to the State account pursuant to that finding.

9

The Secretary of the Treasury shall make the appropriate

10 11

transfer within 7 days after receiving such certification. ‘‘(ii) For purposes of clause (i), State law provisions

12 13 14 15

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 HR 1 PP

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2

1 2

this subsection or after the latest date necessary (as

3

specified by the Secretary of Labor) to ensure that all

4

incentive payments under this subsection are made before

5

October 1, 2010. In the case of a State in which the first 6 7

day of the first regularly scheduled session of the State

8

legislature beginning after the date of enactment of this

9

subsection begins after December 31, 2010, the preceding

10

sentence shall be applied by substituting ‘October 1, 2011’

11

for ‘October 1, 2010’.

12 13 14 15

‘‘(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 HR 1 PP

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2

1 2 3 4

employment offices. ‘‘(6) Out of any money in the Federal unemployment account not otherwise appropriated, the Secretary of the

5

Treasury shall reserve $7,000,000,000 for incentive pay6 7

ments under this subsection. Any amount so reserved shall

8

not be taken into account for purposes of any

9

determination under section 902, 910, or 1203 of the

10 11

amount in the Fed eral unemployment account as of any given time. Any amount so reserved for which the

12 13 14 15

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 HR 1 PP

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2

1 2

Unemployment Trust Fund, within 30 days after the date of

3

the enactment of this subsection, the amount determined

4

with respect to such State under paragraph (2).

5

‘‘(2) The amount to be transferred under this sub6 7

section to a State account shall (as determined by the Sec-

8

retary of Labor and certified by such Secretary to the Sec-

9

retary of the Treasury) be equal to the amount obtained by

10

multiplying $500,000,000 by the same ratio as determined

11

under subsection (f)(1)(B) with respect to such State.

12 13 14 15

‘‘(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 comHR 1 PP

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2

1 2

pensation; and

3 4

‘‘(D) staff-assisted reemployment services for unemployment compensation claimants.’’.

5

(b) R EGULATIONS .—The Secretary of Labor may pre6 7

scribe any regulations, operating instructions, or other

8

guidance necessary to carry out the amendment made by

9

subsection (a).

10 11 12 13 14 15

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2

1 2

SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH AD VANCES.

3 4 5 6

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:

7 8 9 10

‘‘(10)(A) With respect to the period beginning on the date of enactment of this paragraph and ending on December 31, 2010—

11 12

‘‘(i) any interest payment otherwise due from a State under this subsection during such period shall

13

be deemed to have been made by the State; and 14

‘‘(ii) no interest shall accrue on any advance or

15

advances made under section 1201 to a State during such period. ‘‘(B) The provisions of subparagraph (A) shall have no effect on the requirement for interest payments under this subsection after the period described in such subparagraph or on the accrual of interest under this subsection after such period.’’.

Subtitle B—Assistance for Vulnerable Individuals SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

(a) T EMPORARY FUND .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(1) IN GENERAL.—Section 403 of the Social Se-

3

curity Act (42 U.S.C. 603) is amended by adding at

4

the end the following:

5 6

‘‘(c) E MERGENCY FUND .—

7 8 9

‘‘(1) E

STABLISHMENT .—There

is established in

the Treasury of the United States a fund which shall be known as the ‘Emergency Contingency Fund for

10 11

State Temporary Assistance for Needy Families Pro-

12

grams’ (in this subsection referred to as the ‘Emer-

13

gency Fund’).

14

‘‘(2) D EPOSITS INTO FUND .—

15

‘‘(A) I N GENERAL.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 2009, $3,000,000,000 for payment to the Emergency Fund. ‘‘(B) A

VAILABILITY 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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(C) L IMITATION .—In no case may the Sec-

2 3

retary make a grant from the Emergency Fund

4

for a fiscal year after fiscal year 2010. ‘‘(3)

5

G RANTS .— 6

‘‘(A) G

7

RANT RELATED TO CASELOAD IN -

CREASES .—

8 9

‘‘(i) I N GENERAL.—For each calendar

10

quarter in fiscal year 2009 or 2010, the

11

Secretary shall make a grant from the

12

Emergency Fund to each State that—

13

‘‘(I) requests a grant under this

14

subparagraph for the quarter; and

15

‘‘(II) meets the requirement of clause (ii) for the quarter. ‘‘(ii) C MENT .—A

ASELOAD INCREASE REQUIRE -

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) A

MOUNT OF GRANT .—Subject

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to

2

1 2

paragraph (5), the amount of the grant to

3

be made to a State under this subparagraph

4

for a quarter shall be 80 percent of the

5

amount (if any) by which the total expendi6

tures of the State for basic assistance (as de-

7 8

fined by the Secretary) in the quarter,

9

whether under the State program funded

10

under this part or as qualified State ex-

11

penditures, exceeds the total expenditures of

12

the State for such assistance for the cor-

13

responding quarter in the emergency fund

14

base year of the State.

15

‘‘(B) G PENDITURES

RANT RELATED TO INCREASED EX FOR

NON - RECURRENT

SHORT

TERM

BENEFITS .—

‘‘(i) I N 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(ii) N

2 3

ON -RECURRENT SHORT TERM

EXPENDITURE

4

REQUIREMENT .—A

State

meets the requirement of this clause for a

5

quarter if the total expenditures of the State 6

for non-recurrent short term benefits in the

7 8

quarter, whether under the State program

9

funded under this part or as qualified State

10

expenditures, exceeds the total such expendi

11

tures of the State for non-recurrent short

12

term benefits in the corresponding quarter

13

in the emergency fund base year of the

14

State.

15

‘‘(iii) A

MOUNT 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) G

RANT RELATED TO INCREASED EXPENDITURES

FOR SUBSIDIZED EMPLOYMENT .— GENERAL .—For

‘‘(i) I N

each calendar quarter in fiscal

year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

that—

2 3

‘‘(I) requests a grant under this

4

subparagraph for the quarter; and

5

‘‘(II) meets the requirement of clause 6

(ii) for the quarter.

7

‘‘(ii) S

8 9

UBSIDIZED EMPLOYMENT EX -

PENDITURE REQUIREMENT .—A

10

State meets the

requirement of this clause for a quarter if

11

the total expenditures of the State for sub-

12

sidized employment in the quarter, whether

13

under the State program funded under this

14

part or as qualified State expenditures, ex-

15

ceeds the total of such expenditures of the State in the corresponding quarter in the emergency fund base year of the State. ‘‘(iii) A

MOUNT 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) A

UTHORITY TO MAKE NECESSARY ADJUSTMENTS

TO DATA AND COLLECT NEEDED DATA .—In HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

determining

2

1 2

the size of the caseload of a State and the

3

expenditures of a State for basic assistance, non-re-

4

current short-term benefits, and subsidized employ-

5

ment, during any period for which the State requests 6 7

funds under this subsection, and during the emergency

8

fund base year of the State, the Secretary may make

9

appropriate adjustments to the data to ensure that the

10 11

data reflect expenditures under the State program funded under this part and qualified State ex-

12 13 14 15

penditures. 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) L

IMITATION .—The

total amount payable to

a single State under subsection (b) and this subsection for a fiscal year shall not exceed 25 percent of the State family assistance grant. ‘‘(6) L

IMITATIONS 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) T

IMING OF IMPLEMENTATION .—The

Secretary

shall implement this subsection as quickly as reasonably possible, pursuant to appropriate guidance HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

to States.

3

‘‘(8) D EFINITIONS .—In this subsection:

4

‘‘(A) A VERAGE MONTHLY ASSISTANCE CASELOAD

5

DEFINED .—The

term ‘average monthly assistance

6

caseload’ means, with respect to a State and a

7 8

quarter, the number of families receiving

9

assistance during the quarter under the State

10

program funded under this part or as qualified

11

State expenditures, subject to adjustment under

12

paragraph (4). 13

‘‘(B) E MERGENCY FUND BASE YEAR.— ‘‘(i) I N GENERAL.—The term ‘emer-

14 15

gency 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) C

ATEGORIES DESCRIBED .—The

categories described in this clause are the following: ‘‘(I) The average monthly assistance caseload of the State.

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2

1 2

‘‘(II) The total expenditures of the

3

State for non-recurrent short term ben-

4

efits, whether under the State program

5

funded under this part or as qualified 6

State expenditures.

7

‘‘(III) The total expenditures of the

8 9

State for subsidized employment,

10

whether under the State program funded

11

under this part or as qualified State

12

expenditures.

13

‘‘(C) Q

14

UALIFIED STATE EXPENDITURES .—

The

term ‘qualified State expenditures’ has the

15

meaning given the term in section 409(a)(7).’’. (2) R

EPEAL .—Effective

October 1, 2010, sub-

section (c) of section 403 of the Social Security Act (42 U.S.C. 603) (as added by paragraph (1)) is repealed. (b) T EMPORARY M ODIFICATION OF C ASELOAD R EDUCTION C REDIT .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

monthly assistance caseload of the State (within the

3

meaning of section 403(c)(8)(B), except that, if a State

4

elects such option for fiscal year 2008, the emergency fund

5

base year of the State with respect to such caseload shall 6 7

be fiscal year 2007))’’ before ‘‘under the State’’. (c) D

8 9 10 11

TO

ISREGARD

FROM L IMITATION ON T OTAL PAYMENTS

T ERRITORIES .—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),’’.

12

(d) E FFECTIVE D ATE .—The amendments made by this

13 14 15

section shall take effect on the date of the enactment of this Act. SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

(a) E

XTENSION

T HROUGH 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) C

ONFORMING

A MENDMENT .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

applied as if ‘fiscal year 2010’ were

3

substituted for ‘fiscal year 2001’;

4 5

and’’. SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO

6 USE TANF FUNDS CARRIED OVER FROM

7 PRIOR YEARS TO PROVIDE TANF BENEFITS

8

AND SERVICES.

9 10 11 12 13

Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows: ‘‘(e) A UTHORITY TO C ARRY O VER C ERTAIN A MOUNTS FOR B ENEFITS OR S ERVICES OR FOR FUTURE C ONTINGENCIES .—A

14 15

State or tribe may use a grant made to the State or tribe under this part for any fiscal year to provide, without fiscal year limitation, any benefit or service that may be provided under the State or tribal program funded under this part.’’. SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY TO PROVIDE FEDERAL MATCHING PAYMENTS FOR STATE SPENDING OF CHILD SUPPORT INCENTIVE PAYMENTS.

During the period that begins on October 1, 2008, and ends on December 31, 2010, section 455(a)(1) of the Social Security Act (42 U.S.C. 655(a)(1)) shall be applied without

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2 regard to the amendment made by section 7309(a) of the Deficit Reduction Act of 2005 (Public Law 109–171, 120 Stat. 147).

TITLE III—HEALTH INSURANCE ASSISTANCE SEC. 3000. TABLE OF CONTENTS OF TITLE.

The table of contents for this title is as follows: TITLE III—HEALTH INSURANCE ASSISTANCE Sec. 3000. Table of contents of title. Subtitle A—Premium Subsidies for COBRA Continuation Coverage for Unemployed Workers Sec. 3001. Premium assistance for COBRA benefits. Subtitle B—Transitional Medical Assistance (TMA) Sec. 3101. Extension of transitional medical assistance (TMA). Subtitle C—Extension of the Qualified Individual (QI) Program Sec. 3201. Extension of the qualifying individual (QI) program. Subtitle D—Other Provisions Sec. 3301. Premiums and cost sharing protections under Medicaid, eligibility determinations under Medicaid and CHIP, and protection of certain Indian property from Medicaid estate recovery. Sec. 3302. Rules applicable under Medicaid and CHIP to managed care entities with respect to Indian enrollees and Indian health care providers and Indian managed care entities. Sec. 3303. Consultation on Medicaid, CHIP, and other health care programs funded under the Social Security Act involving Indian Health Programs and Urban Indian Organizations. Sec. 3304. Application of prompt pay requirements to nursing facilities. Sec. 3305. Period of application; sunset.

1

Subtitle A—Premium Subsidies for 2 COBRA 3 for

Continuation Coverage

Unemployed Workers

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2

1

4

2

SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.

3 4

5(a) T ABLE OF C ONTENTS OF S UBTITLE.—The table of 6 contents of this subtitle is as follows:

5

Sec. 3001. Premium assistance for COBRA benefits.

6

7(b) P REMIUM A SSISTANCE FOR COBRA C

7 8

8

ATION

ONTINU

C OVERAGE FOR U NEMPLOYED W ORKERS AND T HEIR

9 FAMILIES .—

9

10(1) PROVISION OF PREMIUM ASSISTANCE.—

10

11(A) R

11

EDUCTION OF PREMIUMS PAYABLE .—

12In the case of any premium for a month of cov

12

13erage beginning after the date of the enactment

13

14of the Act for COBRA continuation coverage

14

15with respect to any assistance eligible indi

15

16vidual, such individual shall be treated for pur 17poses of any COBRA continuation provision as 18having paid the amount of such premium if such 19individual pays 50 percent of the amount of such 20premium (as determined without regard to this 21

subsection). 22(B) PLAN ENROLLMENT OPTION .— (i) I N GENERAL.—Notwithstanding the COBRA continuation provisions, an assistance eligible individual may, not later than 90 days after the date of notice of the plan

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2

1 2

enrollment option described in this subpara-

3

graph, elect to enroll in coverage under a

4

plan offered by the employer involved, or

5

the employee organization involved 6

(including, for this purpose, a joint board of

7 8

trustees of a multiemployer trust affiliated

9

with one or more multiemployer plans), that

10

is different than coverage under the plan in

11

which such individual was enrolled at the

12

time the qualifying event occurred, and

13

such coverage shall be treated as COBRA

14

continuation coverage for purposes of the

15

applicable COBRA continuation coverage provision. (ii) R

EQUIREMENTS .—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 cov erage as provided for this HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

subparagraph;

2 3

(II) the premium for such different

4

coverage does not exceed the premium

5

for coverage in which the individual 6

was enrolled at the time the qualifying

7

event occurred;

8 9

(III) the different coverage in

10

which the individual elects to enroll is

11

coverage that is also offered to the ac-

12

tive employees of the employer at the

13

time at which such election is made;

14

and

15

(IV) the different coverage is not— (aa) coverage that provides only dental, vision, counseling, or referral services (or a combination of such services); (bb) a health flexible spending account or health reimbursement arrangement; or (cc) coverage that provides coverage for services or HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

treatments furnished in an

3

on-site medical facility

4

maintained by the employer and

5

that consists primarily of 6

first-aid services, prevention and

7 8

wellness care, or similar care (or

9

a combination of such care).

10

(C) P REMIUM REIMBURSEMENT .—For pro-

11

visions providing the balance of such premium,

12

see section 6432 of the Internal Revenue Code of

13

1986, as added by paragraph (12).

14

(2) L IMITATION OF PERIOD OF PREMIUM ASSIST -

15

ANCE .—

(A) I N GENERAL.—Paragraph (1)(A) shall not apply with respect to any assistance eligible individual for months of coverage beginning on or after the earlier of— (i) the first date that such individual is eligible for coverage under any other group health plan (other than coverage consisting of only dental, vision, counseling, or referral services (or a combination thereof), coverage under a health reimbursement arHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

rangement or a health flexible spending ar-

3

rangement, or coverage of treatment that is

4

furnished in an on-site medical facility

5

maintained by the employer and that con 6

sists primarily of first-aid services, preven-

7 8

tion and wellness care, or similar care (or a

9

combination thereof)) or is eligible for

10

benefits under title XVIII of the Social Se-

11

curity Act; or

12

(ii) the earliest of—

13

(I) the date which is 12 months

14

after the first day of first month that

15

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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) T

2 3

IMING OF ELIGIBILITY FOR ADDITIONAL

COVERAGE .—For

4

purposes of subparagraph (A)(i),

an individual shall not be treated as eligible for

5

coverage under a group health plan before the 6

first date on which such individual could be

7

covered under such plan.

8 9

(C) N

10

OTIFICATION REQUIREMENT .—An

as-

sistance eligible individual shall notify in writing

11

the group health plan with respect to which

12

paragraph (1)(A) applies if such paragraph

13

ceases to apply by reason of subparagraph

14

(A)(i). Such notice shall be provided to the group

15

health plan in such time and manner as may be specified by the Secretary of Labor. (3) A

SSISTANCE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(C) the qualifying event with respect to the

2 3

COBRA continuation coverage consists of the in-

4

voluntary termination of the covered employee’s

5

employment and occurred during such period. 6

(4) E

7 8

XTENSION OF ELECTION PERIOD AND EFFECT ON

COVERAGE .—

9

(A) I N GENERAL.—Notwithstanding section

10

605(a) of the Employee Retirement Income Secu

11

rity Act of 1974, section 4980B(f)(5)(A) of the

12

Internal Revenue Code of 1986, section 2205(a)

13

of the Public Health Service Act, and section

14

8905a(c)(2) of title 5, United States Code, in the

15

case of an individual who is a qualified beneficiary described in paragraph (3)(A) as of the date of the enactment of this Act and has not made the election referred to in paragraph (3)(B) as of such date, such individual may elect the COBRA continuation coverage under the COBRA continuation coverage provisions containing such sections during the 60-day period commencing with the date on which the notification required under paragraph (7)(C) is provided to such individual. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) C

2 3

OMMENCEMENT OF COVERAGE ; NO

REACH -BACK .—Any

4

COBRA continuation coverage

elected by a qualified beneficiary during an

5

extended election period under subparagraph 6

(A)—

7

(i) shall commence on the date of the

8 9

enactment of this Act, and

10

(ii) shall not extend beyond the period

11

of COBRA continuation coverage that

12

would have been required under the applica

13

ble COBRA continuation coverage provision

14

if the coverage had been elected as required

15

under such provision. (C) P REEXISTING CONDITIONS .—With respect to a qualified beneficiary who elects COBRA continuation coverage pursuant to subparagraph (A), the period— (i) beginning on the date of the qualifying event, and (ii) ending with the day before the date of the enactment of this Act, shall be disregarded for purposes of determining the 63-day periods referred to in section 701)(2) of the Employee HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Retirement Income Security Act of 1974, section

3

9801(c)(2) of the Internal Revenue Code of 1986,

4

and section 2701(c)(2) of the Public Health

5

Service Act. 6

(5) E

7

XPEDITED REVIEW OF DENIALS OF PREMIUM

8

ASSISTANCE .—In

9

requests treatment as an assistance eligible individual

10

and is denied such treatment by the group health plan

11

any case in which an individual

by reason of such individual’s ineligibility for COBRA

12 13 14 15

continuation coverage, the Secretary of Labor (or the Secretary of Health and Human services in connection with COBRA continu ation coverage which is provided other than pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974), in consultation with the Secretary of the Treasury, shall provide for expedited review of such denial. An individual shall be entitled to such review upon application to such Secretary in such form and manner as shall be provided by such Secretary. Such Secretary shall make a determination regarding such individual’s eligibility within 10 business days after receipt of such individual’s application for review under this paragraph. HR 1 PP

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2

1

(6) D ISREGARD OF SUBSIDIES FOR PURPOSES OF

2 3 4

FEDERAL AND STATE PROGRAMS .—Notwithstanding

any

other provision of law, any premium reduction with

5

respect to an assistance eligible individual under this 6 7

subsection shall not be considered income or re-

8

sources in determining eligibility for, or the amount

9

of assistance or benefits provided under, any other

10 11

public benefit provided under Federal law or the law of any State or political subdivision thereof.

12

(7) N OTICES TO INDIVIDUALS .—

13

(A) G ENERAL NOTICE.—

14

(i) IN GENERAL.—In the case of notices

15

provided under section 606(4) of the Em ployee Retirement Income Security Act of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the Internal Revenue Code of 1986, section 2206(4) of the Public Health Service Act (42 U.S.C. 300bb–6(4)), or section 8905a(f)(2)(A) of title 5, United States Code, with respect to individuals who, during the period described in paragraph (3)(A), become entitled to elect COBRA continuation coverage, such notices HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

shall include an additional notification to

3

the recipient of—

4

(I) the availability of premium

5

reduction with respect to such coverage 6

under this subsection; and

7

(II) the option to enroll in different

8 9

coverage if an employer that permits

10

assistance eligible individuals to elect

11

enrollment in different coverage (as

12

described in paragraph (1)(B)).

13

(ii) A

14

LTERNATIVE NOTICE .—In

the case

of COBRA continuation coverage to which

15

the notice provision under such sections does not apply, the Secretary of Labor, in consultation with the Secretary of the Treasury and the Secretary of Health and Human Services, shall, in coordination with administrators of the group health plans (or other entities) that provide or administer the COBRA continuation coverage involved, provide rules requiring the provision of such notice. (iii) F ORM .—The requirement of the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

additional notification under this subpara-

3

graph may be met by amendment of existing

4

notice forms or by inclusion of a separate

5

document with the notice otherwise re6

quired.

7

(B) S PECIFIC REQUIREMENTS .—Each addi-

8 9

tional notification under subparagraph (A) shall

10

include—

11

(i) the forms necessary for establishing

12

eligibility for premium reduction under this

13

subsection,

14

(ii) the name, address, and telephone

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

coverage under another group health plan

3

or eligibility for benefits under title XVIII of

4

the Social Security Act and the penalty

5

provided for failure to so notify the plan, 6

(v) a description, displayed in a

7 8

prominent manner, of the qualified bene-

9

ficiary’s right to a reduced premium and

10

any conditions on entitlement to the reduced

11

premium; and

12

(vi) a description of the option of the

13

qualified beneficiary to enroll in different

14

coverage if the employer permits such bene-

15

ficiary to elect to enroll in such different coverage under paragraph (1)(B). (C) N

OTICE RELATING TO RETROACTIVE

COVERAGE .—In

the case of an individual de-

scribed in paragraph (3)(A) who has elected COBRA continuation coverage as of the date of enactment of this Act or an individual described in paragraph (4)(A), the administrator of the group health plan (or other person) involved shall provide (within 60 days after the date of enactment of this Act) for the additional notifiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

cation required to be provided under subpara-

3

graph (A).

4

(D) M

ODEL NOTICES .—Not

later than 30

5

days after the date of enactment of this Act, the 6

Secretary of the Labor, in consultation with the

7 8

Secretary of the Treasury and the Secretary of

9

Health and Human Services, shall prescribe

10

models for the additional notification required

11

under this paragraph.

12

(8) S

13 14 15

AFEGUARDS .—The

Secretary of the Treasury

shall provide such rules, procedures, regulations, and other guidance as may be necessary and appropriate to prevent fraud and abuse under this subsection. (9) O UTREACH .—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 HR 1 PP

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2

1 2

on those individuals electing continuation coverage

3

who are referred to in paragraph (7)(C). Information

4

on such premium reduction, including enrollment,

5

shall also be made available on website of the Depart6 7 8

ments of Labor, Treasury, and Health and Human Services.

9 10

(10) D

EFINITIONS .—For

purposes of this sub-

section—

11

(A) A

DMINISTRATOR .—The

term ‘‘adminis-

12

trator’’ has the meaning given such term in sec-

13

tion 3(16) of the Employee Retirement Income

14

Security Act of 1974

15

(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 pedi atric vaccines), or section 8905a of title 5, United States Code, or under a State program HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

that provides continuation coverage comparable

3

to such continuation coverage. Such term does

4

not include coverage under a health flexible

5

spending arrangement. 6

(C) COBRA

7

CONTINUATION PROVISION .—

The

8

term ‘‘COBRA continuation provision’’ means

9

the provisions of law described in subparagraph

10

(B).

11

(D) C

OVERED EMPLOYEE .—The

term ‘‘cov-

12

ered employee’’ has the meaning given such term

13

in section 607(2) of the Employee Retirement In-

14

come Security Act of 1974.

15

(E) Q

UALIFIED 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) G

ROUP 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) S TATE.—The term ‘‘State’’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, Amer HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

ican Samoa, and the Commonwealth

2 3

of the Northern Mariana Islands.

4

(11) R EPORTS .—

5

(A) INTERIM REPORT .—The Secretary of the

6

Treasury shall submit an interim report to the

7 8

Committee on Education and Labor, the Com-

9

mittee on Ways and Means, and the Committee

10

on Energy and Commerce of the House of Rep-

11

resentatives and the Committee on Health, Edu-

12

cation, Labor, and Pensions and the Committee 13

on Finance of the Senate regarding the premium

14

reduction provided under this subsection that in-

15

cludes— (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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under this section, the Secretary of the Treasury

3

shall submit a final report to each Committee re-

4

ferred to in subparagraph (A) that includes—

5

(i) the number of individuals provided 6

premium reduction under this section;

7

(ii) the average dollar amount (monthly

8 9

and annually) of premium reductions

10

provided to such individuals; and

11

(iii) the total amount of expenditures

12

incurred (with administrative expenditures

13

noted separately) in connection with pre-

14

mium reduction under this section.

15

(12) COBRA

PREMIUM ASSISTANCE .—

(A) IN GENERAL.—Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ‘‘SEC. 6432. COBRA PREMIUM ASSISTANCE.

‘‘(a) I N G ENERAL.—The person to whom premiums are payable under COBRA continuation coverage shall be reimbursed for the amount of premiums not paid by plan beneficiaries by reason of section 3001(b) of the American Recovery and Reinvestment Act of 2009. Such amount shall HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

be treated as a credit against the requirement of such

3

person to make deposits of payroll taxes and the liability

4

of such person for payroll taxes. To the extent that such

5

amount exceeds the amount of such taxes, the Secretary 6 7

shall pay to such person the amount of such excess. No

8

payment may be made under this subsection to a person

9

with respect to any assistance eligible individual until after

10 11

such person has received the reduced premium from such individual required under section 3001(a)(1)(A) of such

12 13 14 15

Act. ‘‘(b) P AYROLL T AXES .—For purposes of this section, the term ‘payroll taxes’ means— ‘‘(1) amounts required to be deducted and withheld for the payroll period under section 3401 (relating to wage withholding), ‘‘(2) amounts required to be deducted for the payroll period under section 3102 (relating to FICA employee taxes), and ‘‘(3) amounts of the taxes imposed for the payroll period under section 3111 (relating to FICA employer taxes). ‘‘(c) T

REATMENT OF C REDIT .—Except

as otherwise

provided by the Secretary, the credit described in HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subsection (a) shall be applied as though the employer had

3

paid to the Secretary, on the day that the qualified

4

beneficiary’s premium payment is received, an amount

5

equal to such credit. 6 7

‘‘(d) T REATMENT OF PAYMENT .—For purposes of section

8

1324(b)(2) of title 31, United States Code, any pay

9

ment under this subsection shall be treated in

10 11

the same manner as a refund of the credit under section 35.

12 13

‘‘(e) R EPORTING .— ‘‘(1) I N GENERAL.—Each person entitled to re-

14 15

imbursement under subsection (a) for any period shall submit such reports as the Secretary may require, including— ‘‘(A) an attestation of involuntary termination of employment for each covered employee on the basis of whose termination entitlement to reimbursement is claimed under subsection (a), and ‘‘(B) a report of the amount of payroll taxes offset under subsection (a) for the reporting period and the estimated offsets of such taxes for the subsequent reporting period in connection HR 1 PP

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2 with reimbursements under subsection (a). ‘‘(2) T IMING OF REPORTS RELATING TO AMOUNT OF PAYROLL TAXES .—Reports

required under paragraph

(1)(B) shall be submitted at the same time as deposits of taxes imposed by chapters 21, 22, and 24 or at such time as is specified by the Secretary. ‘‘(f) R

EGULATIONS .—The

Secretary may issue such

regulations or other guidance as may be necessary or appropriate to carry out this section, including the requirement

1 to report information or the establishment of other methods 2 for verifying the correct amounts of payments and credits 3 under this section, and the application of this section to 4 group health plans which are multiemployer plans.’’. 5(B) S

OCIAL SECURITY TRUST FUNDS HELD

6 HARMLESS .—In determining any amount trans 7ferred or appropriated to any fund under the So 8cial Security Act, section 6432 of the Internal 9Revenue Code of 1986 shall not be taken into ac 10

count. 11(C) C

LERICAL AMENDMENT .—The

table of

12sections for subchapter B of chapter 65 of the In 13ternal Revenue Code of 1986 is amended by add HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

14ing at the end the following new item:

2

‘‘Sec. 6432. COBRA premium assistance.’’.

3

15(D) E

4

FFECTIVE DATE .—The

amendments

5

16made by this paragraph shall apply to pre

6

17miums to which subsection (a)(1)(A) applies.

7

18

(E) S PECIAL RULE.—

8

19(i) IN GENERAL.—In the case of an as

9

20sistance eligible individual who pays the

10

21full premium amount required for COBRA

11

22continuation coverage for any month during

12

23the 60-day period beginning on the first day

13

24of the first month after the date of enact

14

ment of this Act, the person to whom such

15

payment is made shall— (I) make a reimbursement payment to such individual for the amount of such premium paid in excess of the amount required to be paid under subsection (b)(1)(A); or (II) provide credit to the individual for such amount in a manner that reduces one or more subsequent premium payments that the individual is required to pay under such subHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section for the coverage involved.

3

(ii) R EIMBURSING EMPLOYER.—A person

4

to which clause (i) applies shall be re-

5

imbursed as provided for in section 6432 of 6

the Internal Revenue Code of 1986 for any

7 8

payment made, or credit provided, to the

9

employee under such clause.

10

(iii) PAYMENT OR CREDITS .—Unless it is

11

reasonable to believe that the credit for the

12

excess payment in clause (i)(II) will be used

13

by the assistance eligible individual within

14

180 days of the date on which the person

15

receives from the individual the pay ment 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 such day. (13) PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM ASSISTANCE .—

(A) I N 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) I N G ENERAL.—Any person required to notify a group health plan under section 3001(a)(2)(C) of the American Recovery and Reinvestment Act of 2009 who fails to make such a notification at such time and in such manner

1 as the Secretary of Labor may require shall pay a penalty 2 of 110 percent of the premium reduction provided under 3 such section after termination of eligibility under such sub 4 section. 5‘‘(b) R

EASONABLE

C AUSE E XCEPTION .—No penalty

6 shall be imposed under subsection (a) with respect to any

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2

1

7 failure if it is shown that such failure is due to reasonable

2 3

8 cause and not to willful neglect.’’.

4

9(B) C

5

table of

10sections of part I of subchapter B of chapter 68

6 7

LERICAL AMENDMENT .—The

11of such Code is amended by adding at the end 12

8

the following new item: ‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance.’’.

9

13(C) E

10

FFECTIVE DATE .—The

amendments

11

14made by this paragraph shall apply to failures

12

15occurring after the date of the enactment of this

13

16

Act.

14

17(14) C OORDINATION WITH HCTC .—

15

18(A) IN GENERAL.—Subsection (g) of section 1935 of the Internal Revenue Code of 1986 is 20amended by redesignating paragraph (9) as 21paragraph (10) and inserting after paragraph 22(8) the following new paragraph: 23‘‘(9) COBRA

PREMIUM ASSISTANCE .—In

the

24case of an assistance eligible individual who receives premium reduction for COBRA continuation coverage under section 3001(a) of the American Recovery and Reinvestment Act of 2009 for any month during the taxable year, such individual shall not be treated as an eligible individual, a certified individual, or a qualifying family member for purposes of this section or section 7527 with respect to such month.’’. (B) E FFECTIVE DATE.—The amendment made

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2 by subparagraph (A) shall apply to taxable years ending after the date of the enactment of this Act.

(15) E

XCLUSION OF COBRA PREMIUM ASSISTANCE

FROM GROSS INCOME .—

(A) IN GENERAL.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139B the following new section: ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE.

‘‘In the case of an assistance eligible individual (as defined in section 3001 of the American Recovery and Reinvestment Act of 2009), gross income does not include any premium reduction provided under subsection (a) of such section.’’. (B) C

LERICAL AMENDMENT .—The

table of

sections for part III of subchapter B of chapter

11 of such Code is amended by inserting after the 2item relating to section 139B the following new 3

item: ‘‘Sec. 139C. COBRA premium assistance.’’.

4(C) E

FFECTIVE DATE .—The

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amendments

2

1 2

5made by this paragraph shall apply to taxable

3

6years ending after the date of the enactment of

4

7

this Act.

5

8 Subtitle

6

B—Transitional Medical

9 Assistance

(TMA)

7

10

8 9 10

SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSIST

11

ANCE (TMA).

12

(a) 18-M ONTH E XTENSION .— 13(1) I N GENERAL.—Sections 1902(e)(1)(B) and

11 12

141925(f) of the Social Security Act (42 U.S.C.

13

151396a(e)(1)(B), 1396r–6(f)) are each amended by

14 15

16striking ‘‘September 30, 2003’’ and inserting ‘‘Decem 17

ber 31, 2010’’. 18(2) E

FFECTIVE DATE .—The

amendments made

19by this subsection shall take effect on July 1, 2009. 20(b) S 21

BILITY.—Section

TATE

O PTION OF INITIAL 12-M ONTH E LIGI

1925 of the Social Security Act (42 U.S.C.

22 1396r–6) is amended— 23(1) in subsection (a)(1), by inserting ‘‘but subject 24to paragraph (5)’’ after ‘‘Notwithstanding any other 25

provision of this title’’; (2) by adding at the end of subsection (a) the following: ‘‘(5) O

PTION OF 12 -MONTH INITIAL ELIGIBILITY

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2

1 2

PERIOD .—A

3

this subsection to a 6-month period (or 6 months) as a

4

State may elect to treat any reference in

reference to a 12-month period (or 12 months). In the

5

case of such an election, subsection (b) shall not 6 7

apply.’’; and (3) in subsection (b)(1), by inserting ‘‘but subject

8 9 10 11

to subsection (a)(5)’’ after ‘‘Notwithstanding any other provision of this title’’. (c) R

EMOVAL OF R EQUIREMENT FOR

PREVIOUS R ECEIPT

12 13 14 15

OF M EDICAL

A SSISTANCE.—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 ‘‘R MENT .—’’

EQUIRE -

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) S TATE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

receiving such aid for fewer than three months or

3

that had applied for and was eligible for such aid

4

for fewer than 3 months during the 6 immediately

5

p r e c e d in g

months

described

in

such

6

subparagraph.’’.

7 8

(d) CMS R

EPORT ON

E NROLLMENT AND PARTICIPATION

9

R ATES U NDER TMA.—Section 1925 of such Act (42 U.S.C.

10

1396r–6), as amended by this section, is further amended

11

by adding at the end the following new subsection:

12 13 14

‘‘(g) C OLLECTION AND R EPORTING OF PARTICIPATION INFORMATION .— ‘‘(1) C

15

OLLECTION

FROM STATES .—Each

OF

INFORMATION

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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

and

3 4

frequency in which other enrollment information under this title is submitted to the

5

Secretary. 6

‘‘(2) A

7

NNUAL REPORTS TO CONGRESS .—Using

the

8

information submitted under paragraph (1), the

9

Secretary shall submit to Congress annual reports

10

concerning enrollment and participation rates de-

11

scribed in such paragraph.’’.

12 13 14 15

(e) E FFECTIVE D ATE .—The amendments made by subsections (b) through (d) shall take effect on July 1, 2009.

Subtitle C—Extension of the Qualified Individual (QI) Program SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

(a) E

XTENSION .—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) E

XTENDING

LOCATION .—Section

T OTAL A MOUNT A VAILABLE FOR A L 1933(g) of such Act (42 U.S.C. 1396u–

3(g)) is amended— (1) in paragraph (2)— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(A) by striking ‘‘and’’ at the end of

2 3

subparagraph (K);

4

(B) in subparagraph (L), by striking the

5

period at the end and inserting a semicolon; and 6

(C) by adding at the end the following new

7

subparagraphs:

8 9

‘‘(M) for the period that begins on January 1, 2010,

10

and ends on September 30, 2010, the total allocation

11

amount is $412,500,000; and ‘‘(N) for the period that

12 13

begins on October 1, 2010, and ends on December 31, 2010, the total allocation amount is

14 15

$150,000,000.’’; and (2) in paragraph (3), in the matter preceding subparagraph (A), by striking ‘‘or (L)’’ and inserting ‘‘(L), or (N)’’.

Subtitle D—Other Provisions SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS UNDER MEDICAID, ELIGIBILITY DETERMINA TIONS UNDER MEDICAID AND CHIP, AND PRO TECTION OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE RECOVERY.

(a) P REMIUMS AND C OST S HARING PROTECTION U NDER M EDICAID .— (1) IN GENERAL.—Section 1916 of the Social SeHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

curity Act (42 U.S.C. 1396o) is amended—

3

(A) in subsection (a), in the matter preceding

4

paragraph (1), by striking ‘‘and (i)’’ and

5

inserting ‘‘, (i), and (j)’’; and 6

(B) by adding at the end the following new

7

subsection:

8 9

‘‘(j) N

10

FURNISHED ITEMS

11

PROGRAMS

OR

O

PREMIUMS OR

OR

C OST S HARING

S ERVICES D IRECTLY

FOR

INDIANS

BY INDIAN

H EALTH

T HROUGH R EFERRAL U NDER C ONTRACT H EALTH

12 13

S ERVICES .— ‘‘(1) N O COST SHARING FOR ITEMS OR SERVICES

14 15

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) N

O REDUCTION IN AMOUNT OF PAYMENT

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2

1 2

TO INDIAN HEALTH PROVIDERS .—Payment

3

under this title to the Indian Health Service, an

4

due

Indian Tribe, Tribal Organization, or Urban

5

Indian Organization, or a health care provider 6

through referral under contract health services

7 8

for the furnishing of an item or service to an In

9

dian who is eligible for assistance under such

10

title, may not be reduced by the amount of any

11

enrollment fee, premium, or similar charge, or

12

any deduction, copayment, cost sharing, or simi-

13

lar charge that would be due from the Indian but

14

for the operation of subparagraph (A).

15

‘‘(2) R

ULE 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) C

ONFORMING 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: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(vi) An Indian who is furnished an

2 3

item or service directly by the Indian

4

Health Service, an Indian Tribe, Tribal Or-

5

ganization or Urban Indian Organization 6

or through referral under contract health

7 8

services.’’; and

9

(B) in subparagraph (B), by adding at the

10

end the following new clause:

11

‘‘(ix) Items and services furnished to

12

an Indian directly by the Indian Health

13

Service, an Indian Tribe, Tribal Organiza-

14

tion or Urban Indian Organization or

15

through referral under contract health services.’’. (b) T FOR

REATMENT OF C ERTAIN

PROPERTY FROM R ESOURCES

M EDICAID AND CHIP E LIGIBILITY.— (1) M EDICAID .—Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended by adding at the end the following new subsection: ‘‘(dd) Notwithstanding any other requirement of this

title or any other provision of Federal or State law, a State shall disregard the following property from resources for purposes of determining the eligibility of an individual who HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

is an Indian for medical assistance under this title:

3 4

‘‘(1) Property, including real property and improvements, that is held in trust, subject to Federal

5

restrictions, or otherwise under the supervision of the 6 7

Secretary of the Interior, located on a reservation, in-

8

cluding any federally recognized Indian Tribe’s res-

9

ervation, pueblo, or colony, including former reserva-

10

tions in Oklahoma, Alaska Native regions established

11

by the Alaska Native Claims Settlement Act, and In-

12 13

dian allotments on or near a reservation as des ignated and approved by the Bureau of

14 15

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 HR 1 PP

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2

1 2

have unique religious, spiritual, traditional, or cul-

3

tural significance or rights that support subsistence or

4

a traditional lifestyle according to applicable tribal

5

law or custom.’’. 6

(2) A

7 8

PPLICATION TO CHIP.—Section

2107(e)(1) of

such Act (42 U.S.C. 1397gg(e)(1)) is amended—

9

(A) by redesignating subparagraphs (B)

10

through (E), as subparagraphs (C) through (F),

11

respectively; and

12

(B) by inserting after subparagraph (A), the

13

following new subparagraph:

14

‘‘(B) Section 1902(dd) (relating to disregard

15

of certain property for purposes of making eligibility determinations).’’. (c) C ONTINUATION OF C URRENT L AW PROTECTIONS OF C ERTAIN INDIAN PROPERTY FROM M EDICAID E STATE R E COVERY.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the procedures established by the State agency

3

under subparagraph (A) exempt income, re-

4

sources, and property that are exempt from the

5

application of this subsection as of April 1, 2003, 6

under manual instructions issued to carry out

7 8

this subsection (as in effect on such date) because

9

of the Federal responsibility for Indian Tribes

10

and Alaska Native Villages. Nothing in this

11

subparagraph shall be construed as preventing

12

the Secretary from providing additional estate

13

recovery exemptions under this title for In-

14

dians.’’.

15

SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP TO MANAGED CARE ENTITIES WITH RESPECT TO INDIAN ENROLLEES AND INDIAN HEALTH CARE PROVIDERS AND INDIAN MANAGED CARE ENTITIES.

(a) IN G ENERAL.—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) S PECIAL R ULES W ITH R ESPECT TO INDIAN E NROLLEES , INDIAN H EALTH C ARE PROVIDERS ,

AND INDIAN

E NTITIES .—

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M ANAGED C ARE

2

1

‘‘(1) E

2 3 4

NROLLEE OPTION TO SELECT AN INDIAN

HEALTH CARE PROVIDER AS PRIMARY CARE PROVIDER .—In

the case of a non-Indian Medicaid managed care

5

entity that— 6

‘‘(A) has an Indian enrolled with the entity;

7

and

8 9 10 11

‘‘(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

12 13 14 15

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 re ceiving 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) A

SSURANCE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

receiving payment under such contract, to satisfy the

3

following requirements:

4

‘‘(A) D

5

HEALTH

6

EMONSTRATION OF ACCESS TO INDIAN

CARE

PROVIDERS

AND

APPLICATION

OF

ALTERNATIVE PAYMENT ARRANGEMENTS .—Subject

to

7

subparagraph (C), to—

8

‘‘(i) demonstrate that the number of

9 10

Indian health care providers that are par-

11

ticipating providers with respect to such en-

12

tity are sufficient to ensure timely access to

13

covered Medicaid managed care services 14

for those Indian enrollees who are eligible

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

than the level and amount of payment which

3

the entity would make for the services if the

4

services were furnished by a participating

5

provider which is not an Indian health care 6

provider.

7

‘‘(B) PROMPT PAYMENT .—To agree to make

8 9

prompt payment (consistent with rule for prompt

10

payment of providers under section 1932(f)) to

11

Indian health care providers that are

12

participating providers with respect to such entity

13

or, in the case of an entity to which subparagraph

14

(A)(ii) or (C) applies, that the entity is required

15

to pay in accordance with that subparagraph. ‘‘(C) A

PPLICATION OF SPECIAL PAYMENT

REQUIREMENTS

FOR

FEDERALLY-QUALIFIED

HEALTH CENTERS AND FOR SERVICES PROVIDED BY CERTAIN INDIAN HEALTH CARE PROVIDERS .—

‘‘(i) F EDERALLY-QUALIFIED HEALTH CENTERS .—

‘‘(I) M

ANAGED CARE ENTITY PAY-

MENT REQUIREMENT .—To

agree to pay

any Indian health care provider that is

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2

1 2

a federally-qualified health center

3

under this title but not a participating

4

provider with respect to the entity, for

5

the provision of covered Medicaid man6

aged care services by such provider to

7 8

an Indian enrollee of the entity at a

9

rate equal to the amount of payment

10

that the entity would pay a federally-

11

qualified health center that is a par-

12

ticipating provider with respect to the

13

entity but is not an Indian health care

14

provider for such services.

15

‘‘(II) C ONTINUED 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 manHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

aged care entity (regardless of whether

3

the federally-qualified health center is

4

or is not a participating provider with

5

the entity). 6

‘‘(ii) P AYMENT RATE FOR SERVICES

7

PROVIDED BY CERTAIN INDIAN HEALTH CARE

8

PROVIDERS .—If

9

the amount paid by a

10

managed care entity to an Indian health

11

care provider that is not a federally-quali-

12

fied health center for services provided by

13

the provider to an Indian enrollee with the 14

managed care entity is less than the rate

15

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) C

ONSTRUCTION .—Nothing

in this

paragraph shall be construed as waiving the apHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

plication of section 1902(a)(30)(A) (relating to

3

application of standards to assure that payments

4

are consistent with efficiency, economy, and

5

quality of care). 6

‘‘(3) S

7

PECIAL RULE FOR ENROLLMENT FOR INDIAN

8

MANAGED CARE ENTITIES .—Regarding

9

a Medicaid managed care program to Indian

10 11

the application of

Medicaid managed care entities, an Indian Medicaid managed care entity may restrict enrollment under

12 13 14 15

such program to Indians and to members of specific Tribes in the same manner as Indian Health Programs may restrict the delivery of services to such Indians and tribal members. ‘‘(4) D

EFINITIONS .—For

purposes of this sub-

section: ‘‘(A) I NDIAN HEALTH CARE PROVIDER .— The term ‘Indian health care provider’ means an Indian Health Program or an Urban Indian Organization. ‘‘(B) INDIAN MEDICAID MANAGED CARE EN TITY.—The

term ‘Indian Medicaid managed care

entity’ means a managed care entity that is controlled (within the meaning of the last sentence of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section 1903(m)(1)(C)) by the Indian Health

3

Service, a Tribe, Tribal Organization, or Urban

4

Indian Organization, or a consortium, which

5

may be composed of 1 or more Tribes, Tribal Or6

ganizations, or Urban Indian Organizations, and

7

which also may include the Service.

8 9

‘‘(C) N ON -INDIAN MEDICAID MANAGED CARE

10

ENTITY.—The

11

term ‘non-Indian Medicaid man-

aged care entity’ means a managed care entity

12

that is not an Indian Medicaid managed care

13

entity.

14

‘‘(D) C

15

OVERED 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) M GRAM .—The

EDICAID

MANAGED

CARE PRO -

term ‘Medicaid managed care pro-

gram’ means a program under sections 1903(m), 1905(t), and 1932 and includes a managed care program operating under a waiver under section HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

1915(b) or 1115 or otherwise.’’.

2 3 4

(b) A

PPLICATION TO

CHIP.—Subject to section

l013(d), section 2107(e)(1) of such Act (42 U.S.C.

5

1397gg(1)) is amended by adding at the end the following 6 7

new subparagraph: ‘‘(E) Subsections (a)(2)(C) and (h) of section

8 9 10

1932.’’. SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER

11

HEALTH CARE PROGRAMS FUNDED UNDER

12

THE SOCIAL SECURITY ACT INVOLVING IN

13 DIAN HEALTH PROGRAMS AND URBAN IN

14 DIAN ORGANIZATIONS.

15

(a) C

ONSULTATION

W ITH T RIBAL T ECHNICAL A DVISORY

G ROUP (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

Group shall not affect the nonapplication of the Federal

3

Advisory Committee Act (5 U.S.C. App.) to such Group.

4 5 6

(b) S

U NDER M EDICAID AND

CHIP.—

7 8

OLICITATION OF A DVICE

(1) M

EDICAID STATE PLAN AMENDMENT .—Subject

to

subsection (d), section 1902(a) of the Social Security

9 10

Act (42 U.S.C. 1396a(a)) is amended— (A) in paragraph (70), by striking ‘‘and’’

11

at the end;

12

(B) in paragraph (71), by striking the period

13 14

at the end and inserting ‘‘; and’’; and

15

(C) by inserting after paragraph (71), the following new paragraph: ‘‘(72) in the case of any State in which 1 or more Indian Health Programs or Urban Indian Organizations furnishes health care services, provide for a process under which the State seeks advice on a regular, ongoing basis from designees of such Indian Health Programs and Urban Indian Organizations on matters relating to the application of this title that are likely to have a direct effect on such Indian Health Programs and Urban Indian Organizations and

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

that—

3

‘‘(A) shall include solicitation of advice

4

prior to submission of any plan amendments,

5

waiver requests, and proposals for demonstration 6

projects likely to have a direct effect on Indians,

7 8

Indian Health Programs, or Urban Indian Or-

9

ganizations; and

10

‘‘(B) may include appointment of an advi-

11

sory committee and of a designee of such Indian

12

Health Programs and Urban Indian Organiza-

13

tions to the medical care advisory committee ad-

14

vising the State on its State plan under this

15

title.’’. (2) A PPLICATION TO CHIP.—Subject to subsection (d), section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)), as amended by section 3302(b)(2), is amended— (A) by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively; and (B) by inserting after subparagraph (A), the following new subparagraph: ‘‘(B) Section 1902(a)(72) (relating to reHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

quiring certain States to seek advice from des-

3

ignees of Indian Health Programs and Urban

4

Indian Organizations).’’.

5

(c) R ULE OF C ONSTRUCTION .—Nothing in the amend6 7

ments made by this section shall be construed as super-

8

seding existing advisory committees, working groups, guid-

9

ance, or other advisory procedures established by the Sec

10

retary of Health and Human Services or by any State with

11

respect to the provision of health care to Indians.

12 13 14 15

(d) C ONTINGENCY R ULE.—If the Children’s Health Insurance Program Reauthorization Act of 2009 (in this subsection referred to as ‘‘CHIPRA’’) has been enacted as of the date of enactment of this Act, the following shall apply: (1) Subparagraph (I) of section 2107(e) of the Social Security Act (as redesignated by CHIPRA) is redesignated as subparagraph (K) and the subparagraph (E) added to section 2107(e) of the Social Security Act by section 3302(b) is redesignated as subparagraph (J). (2) Subparagraphs (D) through (H) of section 2107(e) of the Social Security Act (as added and redesignated by CHIPRA) are redesignated as subparagraphs (E) through (I), respectively and the subparaHR 1 PP

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2

1 2

graph (B) of section 2107(e) of the Social Security Act

3

added by subsection (b)(2) of this section is redes-

4

ignated as subparagraph (D) and amended by striking

5

‘‘1902(a)(72)’’ and inserting ‘‘1902(a)(73)’’. 6

(3) Section 1902(a) of the Social Security Act (as

7 8

amended by CHIPRA) is amended by striking ‘‘and’’

9

at the end of paragraph (71), by striking the period at

10

the end of the paragraph (72) added by CHIPRA and

11

inserting ‘‘; and’’ and by redesignated

12

the paragraph (72) added to such section

13 14

by subsection (b)(1) of this section as

15

paragraph (73). SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS TO NURSING FACILITIES.

Section 1902(a)(37)(A) of the Social Security Act (42 U.S.C. 1396a(a)(37)(A)) is amended by inserting ‘‘, or by nursing facilities,’’ after ‘‘health facilities’’ SEC. 3305. PERIOD OF APPLICATION; SUNSET.

This subtitle and the amendments made by this subtitle shall be in effect only during the period that begins on April 1, 2009, and ends on December 31, 2010. On and after January 1, 2011, the Social Security Act shall be applied as if this subtitle and the amendments made by this HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subtitle had not been enacted.

3 4

TITLE IV—HEALTH INFORMATION TECHNOLOGY

5 SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

6 7

(a) S

HORT

T ITLE.—This title may be cited as the

8

‘‘Medicare and Medicaid Health Information Technology

9

for Economic and Clinical Health Act’’ or the

10 11

‘‘M-HITECH Act’’. (b) T ABLE OF C ONTENTS OF T ITLE.—The table of con-

12 13

tents for this title is as follows: TITLE IV—HEALTH INFORMATION TECHNOLOGY

14

Sec. 4001. Short title; table of contents of title.

15

Subtitle A—Medicare Program Sec. 4201. Incentives for eligible professionals. Sec. 4202. Incentives for hospitals. Sec. 4203. Premium hold harmless and implementation funding. Sec. 4204. Non-application of phased-out indirect medical education (IME) adjustment factor for fiscal year 2009. Sec. 4205. Study on application of EHR payment incentives for providers not receiving other incentive payments. Sec. 4206. Study on availability of open source health information technology systems. Subtitle B—Medicaid Funding Sec. 4211. Medicaid provider EHR adoption and operation payments; implementation funding.

Subtitle A—Medicare Program SEC. 4201. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

(a) INCENTIVE PAYMENTS .—Section 1848 of the Social Security Act (42 U.S.C. 1395w–4) is amended by adding at HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

the end the following new subsection: ‘‘(o) I NCENTIVES FOR A DOPTION AND M EANINGFUL U SE OF C ERTIFIED

EHR T ECHNOLOGY.—

5

‘‘(1) INCENTIVE PAYMENTS .— 6

‘‘(A) IN GENERAL.—

7 8

‘‘(i) I N GENERAL.—Subject to clause

9

(ii) and the succeeding subparagraphs of

10

this paragraph, with respect to covered pro-

11

fessional services furnished by an eligible

12

professional during a payment year (as de-

13

fined in subparagraph (E)), if the eligible

14

professional is a meaningful EHR user (as

15

determined under paragraph (2)) for the reporting period with respect to such year, in TIVE e

paid under this part, there also shall be

addi paid to the eligible professional (or to an tion employer or facility in the cases described to in clause (A) of section 1842(b)(6)), from the the Federal Supplementary Medical amo Insurance Trust Fund established under unt section 1841 an amount equal to 75 percent othe of the Secretary’s estimate (based on claims rwis submitted not later than 2 months after the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

end professional services furnished by the

3

of

4

the

eligible professional during such year. ‘‘(ii) N

O INCENTIVE PAYMENTS WITH

5

pay

RESPECT TO YEARS AFTER 2015 .—No

incentive

6

men payments may be made under this sub-

7 8

t

9

year ‘‘(B) L

10

) of

11

the

section with respect to a year after 2015. IMITATIONS ON AMOUNTS OF INCEN -

PAYMENTS .—

‘‘(i) IN GENERAL.—In no case shall the

12

allo amount of the incentive payment provided

13

wed under this paragraph for an eligible profes-

14

cha sional for a payment year exceed the appli-

15

rges cable amount specified under this subpara und er this part for all suc h cov ered HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

graph with respect to such

3

eligible professional and such year.

4

‘‘(ii) A MOUNT .—Subject to clauses (iii)

5

through (v), the applicable amount specified 6

in this subparagraph for an eligible profes-

7

sional is as follows:

8 9

‘‘(I) For the first payment year for

10

such professional, $15,000 (or, if the

11

first payment year for such eligible

12

professional is 2011 or 2012, $18,000).

13

‘‘(II) For the second

14

payment year for such

15

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) P HASE DOWN FOR ELIGIBLE PROFESSIONALS FIRST

HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ADOPTING EHR IN 2014 .—If

3

year for an eligible professional is 2014,

4

the first payment

then the amount specified in this

5

subparagraph for a pay ment year for such 6

professional is the same as the amount

7 8

specified in clause (ii) for such payment

9

year for an eligible professional whose first

10

payment year is 2013.

11

‘‘(iv) I NCREASE FOR CERTAIN RURAL

12 ELIGIBLE PROFESSIONALS .—In

13

the case of an

eligible professional who predominantly

14

furnishes services under this part in a rural

15

area that is designated by the Secretary (under section 332(a)(1)(A) of the Public Health Service Act) as a health professional shortage area, the amount that would otherwise apply for a payment year for such professional under subclauses (I) through (V) of clause (ii) shall be increased by 25 percent. In implementing the preceding sentence, the Secretary may, as determined appropriate, apply provisions of subsections (m) and (u) of section 1833 in a similar HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

manner as such provisions apply under

3

such subsection.

4

‘‘(v) N

O INCENTIVE PAYMENT IF FIRST

5 ADOPTING AFTER 2014 .—If

the first payment

6

year for an eligible professional is after

7 8

2014 then the applicable amount spec ified

9

in this subparagraph for such professional

10

for such year and any subsequent year shall

11

be $0.

12

‘‘(C) N ON -APPLICATION TO HOSPITAL -BASED

13

ELIGIBLE PROFESSIONALS .—

14

‘‘(i) I N GENERAL.—No incentive pay-

15

ment may be made under this paragraph in the case of a hospital-based eligible professional. ‘‘(ii) H

OSPITAL -BASED ELIGIBLE PRO -

FESSIONAL .—For

purposes of clause (i), the

term ‘hospital-based eligible professional’ means, with respect to covered professional services furnished by an eligible professional during the reporting period for a payment year, an eligible professional, such as a pathologist, anesthesiologist, or HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

emergency physician, who furnishes

3

substantially all of such services in a

4

hospital setting (whether inpatient or

5

outpatient) and through the use of the 6

facilities and equipment, including qualified

7 8

electronic health records, of the hospital.

9

‘‘(D) PAYMENT .— ‘‘(i) F ORM OF PAYMENT .—The payment

10 11

under this paragraph may be in the form of

12

a single consolidated payment or in the

13

form of such periodic installments as the

14

Secretary may specify.

15

‘‘(ii) C

OORDINATION 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.

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(iii) C

2 3

ICAID .—The

4

OORDINATION

WITH

MED -

Secretary shall seek, to the

maximum extent practicable, to avoid du-

5

plicative requirements from Federal and 6

State Governments to demonstrate meaning-

7 8

ful use of certified EHR technology under

9

this title and title XIX. In doing so, the

10

Secretary may deem satisfaction of State

11

requirements for such meaningful use for a

12

payment year under title XIX to be sufficient

13

to qualify as meaningful use under this

14

subsection and subsection (a)(7) and vice

15

versa. The Secretary may also adjust the reporting periods under such title and such subsections in order to carry out this clause. ‘‘(E) PAYMENT YEAR DEFINED .— ‘‘(i) I N GENERAL.—For purposes of this subsection, the term ‘payment year’ means a year beginning with 2011. ‘‘(ii) F IRST ,

SECOND , ETC . PAYMENT YEAR .—The

term ‘first payment year’ means, with respect to covered professional services furnished by an HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

eligible professional, the first year for which an

3

incentive payment is made for such services

4

under this subsection. The terms ‘second

5

payment year’, ‘third payment year’, ‘fourth pay6

ment year’, and ‘fifth payment year’ mean, with

7 8

respect to covered professional services

9

furnished by such eligible professional, each

10

successive year immediately following the first

11

payment year for such professional. ‘‘(2)

12

M EANINGFUL EHR USER.—

13

‘‘(A) I N GENERAL.—For purposes of para-

14

graph (1), an eligible professional shall be treat-

15

ed as a meaningful EHR user for a reporting period for a payment year (or, for purposes of subsection (a)(7), for a reporting period under such subsection for a year) if each of the following requirements is met: ‘‘(i) M

EANINGFUL 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

a meaningful manner, which shall include

3

the use of electronic prescribing as deter-

4

mined to be appropriate by the Secretary.

5

‘‘(ii) I NFORMATION EXCHANGE.—The 6

eligible professional demonstrates to the

7 8

satisfaction of the Secretary, in accordance

9

with subparagraph (C)(i), that during such

10

period such certified EHR technology is

11

connected in a manner that provides, in ac-

12

cordance with law and standards applicable

13

to the exchange of information, for the elec-

14

tronic exchange of health information to im

15

prove the quality of health care, such as promoting care coordination. ‘‘(iii) R EPORTING 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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

The Secretary may provide for the use of alter-

3

native means for meeting the requirements of

4

clauses (i), (ii), and (iii) in the case of an eligible

5

professional furnishing covered professional 6

services in a group practice (as defined by the

7 8

Secretary). The Secretary shall seek to improve

9

the use of electronic health records and health

10

care quality over time by requiring more strin-

11

gent measures of meaningful use selected under

12

this paragraph.

13

‘‘(B) R EPORTING ON MEASURES .—

14

‘‘(i) S

15

ELECTION .—The

Secretary shall

select measures for purposes of subpara graph (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Register such measure and provide for

3

a period of public comment on such

4

measure.

5

‘‘(ii) L IMITATION .—The Secretary may 6

not require the electronic reporting of infor-

7 8

mation on clinical quality measures under

9

subparagraph (A)(iii) unless the Secretary

10

has the capacity to accept the information

11

electronically, which may be on a pilot

12

basis.

13

‘‘(iii) C

14

OORDINATION OF REPORTING OF

INFORMATION .—In

15

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) D EMONSTRATION CERTIFIED

EHR

OF MEANINGFUL USE OF

TECHNOLOGY

AND

INFORMATION

EXCHANGE .—

‘‘(i) IN GENERAL.—A professional may satisfy the demonstration requirement of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

clauses (i) and (ii) of subparagraph (A)

3

through means specified by the Secretary,

4

which may include—

5

‘‘(I) an attestation; 6

‘‘(II) the submission of claims with

7 8

appropriate coding (such as a code

9

indicating that a patient encounter was

10

documented using certified EHR

11

technology);

12

‘‘(III) a survey response; 13

‘‘(IV) reporting under subpara-

14

graph (A)(iii); and

15

‘‘(V) other means specified by the Secretary. ‘‘(ii) U SE 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).

A PPLICATION .— ‘‘(A) P

HYSICIAN

RULES .—Paragraphs

REPORTING

SYSTEM

(5), (6), and (8) of sub-

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‘‘(3)

2

1 2

section (k) shall apply for purposes of this sub-

3

section in the same manner as they apply for

4

purposes of such subsection.

5

‘‘(B) C

OORDINATION WITH OTHER PAY-

6 MENTS .—The

7

provisions of this subsection shall

8

not be taken into account in applying the provi-

9

sions of subsection (m) of this section and of sec-

10

tion 1833(m) and any payment under such pro-

11

visions shall not be taken into account in com-

12

puting allowable charges under this subsection.

13

‘‘(C) L IMITATIONS ON REVIEW .—There shall

14

be no administrative or judicial review under

15

section 1869, section 1878, or otherwise of the determination of any incentive payment under this subsection and the payment adjustment under subsection (a)(7), including the determination of a meaningful EHR user under paragraph (2), a limitation under paragraph (1)(B), and the exception under subsection (a)(7)(B). ‘‘(D) P OSTING ON WEBSITE.—The Secretary shall post on the Internet website of the Centers for Medicare & Medicaid Services, in an easily HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

understandable format, a list of the names, busi-

3

ness addresses, and business phone numbers of

4

the eligible professionals who are meaningful

5

EHR users and, as determined appropriate by 6

the Secretary, of group practices receiving incen-

7 8

tive payments under paragraph (1).

9

‘‘(4) C

10 11

ERTIFIED EHR TECHNOLOGY DEFINED .—

For

purposes of this section, the term ‘certified EHR technology’ means a qualified electronic health record

12 13 14 15

(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 officebased physicians or an inpatient hospital electronic health record for hospitals). ‘‘(5) D

EFINITIONS .—For

purposes of this sub-

section: ‘‘(A) C

OVERED PROFESSIONAL SERVICES .—

The term ‘covered professional services’ has the meaning given such term in subsection (k)(3). ‘‘(B) E

LIGIBLE PROFESSIONAL .—The

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term

2

1 2

‘eligible professional’ means a physician, as de-

3

fined in section 1861(r).

4

‘‘(C) R

EPORTING PERIOD .—The

term ‘re-

5

porting period’ means any period (or periods), 6

with respect to a payment year, as specified by

7

the Secretary.’’.

8 9 10 11

(b) I NCENTIVE

PAYMENT

A DJUSTMENT .—Section 1848(a) of the Social Security Act (42 U.S.C. 1395w–4(a)) is amended by adding at the end

12 13

the following new paragraph: ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF CERTIFIED

14 15

EHR TECHNOLOGY.—

‘‘(A) A DJUSTMENT .— ‘‘(i) IN GENERAL.—Subject to subparagraphs (B) and (D), with respect to covered professional services furnished by an eligible professional during 2015 or any subsequent payment year, if the eligible professional is not a meaningful EHR user (as determined under subsection (o)(2)) for a reporting period for the year, the fee schedule amount for such services furnished by such professional during the HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

year (including the fee schedule amount for

3

purposes of deter mining a payment based

4

on such amount) shall be equal to the

5

applicable percent of the fee schedule 6

amount that would otherwise apply to such

7 8

services under this subsection (determined

9

after application of paragraph (3) but

10

without regard to this paragraph).

11

‘‘(ii) A

PPLICABLE PERCENT .—Subject

to

12

clause (iii), for purposes of clause (i), the

13

term ‘applicable percent’ means—

14

‘‘(I) for 2015, 99 percent (or, in

15

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) A

UTHORITY TO DECREASE AP-

PLICABLE PERCENTAGE FOR 2018 AND SUB SEQUENT YEARS .—For

2018 and each sub-

sequent year, if the Secretary finds that the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

proportion of eligible professionals who are

3

meaningful EHR users (as determined

4

under subsection (o)(2)) is less than 75 per

5

cent, the applicable percent shall be de6

creased by 1 percentage point from the ap-

7 8

plicable percent in the preceding year, but

9

in no case shall the applicable percent be

10

less than 95 percent.

11

‘‘(B) S IGNIFICANT HARDSHIP EXCEPTION .—

12

The Secretary may, on a case-by-case basis, ex-

13

empt an eligible professional from the application

14

of the payment adjustment under subparagraph

15

(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) A

PPLICATION OF PHYSICIAN REPORTING

SYSTEM RULES .—Paragraphs

(5), (6), and (8) of

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2

1 2

subsection (k) shall apply for purposes of this

3

paragraph in the same manner as they apply for

4

purposes of such subsection.

5

‘‘(D) N

ON -APPLICATION

TO

HOSPITAL -

6 BASED ELIGIBLE PROFESSIONALS .—No

7

payment

8

adjustment may be made under subparagraph

9

(A) in the case of hospital-based eligible profes-

10

sionals (as defined in subsection (o)(1)(C)(ii)).

11

‘‘(E) D

EFINITIONS .—For

purposes of this

12

paragraph:

13

‘‘(i) C

14

ICES .—The

15

OVERED PROFESSIONAL SERV -

term ‘covered professional serv-

ices’ has the meaning given such term in subsection (k)(3). ‘‘(ii) E

LIGIBLE PROFESSIONAL .—The

term ‘eligible professional’ means a physician, as defined in section 1861(r). ‘‘(iii) R

EPORTING PERIOD .—The

term

‘reporting period’ means, with respect to a year, a period specified by the Secretary.’’. (c) A PPLICATION TO C ERTAIN MA-A FFILIATED E LIGIBLE PROFESSIONALS .—Section 1853 of the Social Security Act (42 U.S.C. 1395w–23) is amended by adding at the end the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

following new subsection:

3 4

‘‘(l) A PPLICATION OF E LIGIBLE PROFESSIONAL INCENTIVES FOR

C ERTAIN MA O

RGANIZATIONS

FOR

A DOPTION

AND

5

M EANINGFUL U SE OF C ERTIFIED EHR T

ECHNOLOGY.—

6

‘‘(1) I N GENERAL.—Subject to paragraphs (3)

7 8

and (4), in the case of a qualifying MA organization,

9

the provisions of sections 1848(o) and 1848(a)(7)

10 11

shall apply with respect to eligible professionals described in paragraph (2) of the organization who the

12 13 14 15

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) E

LIGIBLE 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

furnishes at least 80 percent of the entity’s patient

3

care services to enrollees of such organization;

4

and

5

‘‘(II) furnishes at least 75 percent of the 6

professional services of the eligible professional

7

to enrollees of the organization; and

8 9

‘‘(B) furnishes, on average, at least 20 hours

10

per week of patient care services.

11

‘‘(3) E

LIGIBLE PROFESSIONAL INCENTIVE PAY-

12 13

MENTS .—

‘‘(A) I N GENERAL.—In applying section

14

1848(o) under paragraph (1), instead of the ad-

15

ditional 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) A

VOIDING DUPLICATION OF PAYMENTS .—

‘‘(i) I N GENERAL.—If an eligible professional described in paragraph (2) is eligiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

ble for the maximum incentive payment

3

under section 1848(o)(1)(A) for the same

4

payment period, the payment incentive shall

5

be made only under such section and not 6

under this subsection.

7

‘‘(ii) M ETHODS .—In the case of an eli-

8 9

gible professional described in paragraph

10

(2) who is eligible for an incentive payment

11

under section 1848(o)(1)(A) but is not de

12

scribed in clause (i) for the same payment

13

period, the Secretary shall develop a proc-

14

ess—

15

‘‘(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) F IXED SCHEDULE FOR APPLICATION OF LIMITATION ON INCENTIVE PAYMENTS FOR ALL ELIGIBLE PROFESSIONALS .—In

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

applying section

2

1 2

1848(o)(1)(B)(ii) under subparagraph (A), in

3

accordance with rules specified by the Secretary,

4

a qualifying MA organization shall specify a

5

year (not earlier than 2011) that shall be treated 6

as the first payment year for all eligible

7

professionals with respect to such organization.

8 9

‘‘(D) C

10

AP FOR ECONOMIES OF SCALE .—In

no

case may an incentive payment be made under

11

this subsection, including under subparagraph

12

(A), to a qualifying MA organization with respect

13

to more than 5,000 eligible professionals of the

14

organization.

15

‘‘(4) PAYMENT ADJUSTMENT .— ‘‘(A) I N 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) S

PECIFIED PERCENT .—The

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percent

2

1 2

specified under this subparagraph for a year is

3

100 percent minus a number of percentage

4

points equal to the product of—

5

‘‘(i) a percentage equal to 100 percent 6

reduced by the applicable percent (under

7 8

section 1848(a)(7)(A)(ii)) for the year; and

9

‘‘(ii) a percentage equal to the Secretary’s

10

estimate of the proportion for the year, of

11

the expenditures under parts A and B that

12

are not attributable to this part, that are

13

attributable to expenditures for physicians’

14

services.

15

‘‘(C) A MENT .—In

PPLICATION OF PAYMENT ADJUST -

the case that a qualifying MA orga-

nization attests that not all eligible professionals of the organization are meaningful EHR users with respect to a year, the Secretary shall apply the payment adjustment under this paragraph based on the proportion of all eligible professionals of the organization that are not meaningful EHR users for such year. If the number of eligible professionals of the organization that are not meaningful EHR users for such year exceeds HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

5,000, such number shall be reduced to 5,000 for

3

purposes of determining the proportion under the

4

preceding sentence.

5

‘‘(5) Q UALIFYING MA ORGANIZATION DEFINED .— In 6 7

this subsection and subsection (m), the term ‘quali-

8

fying MA organization’ means a Medicare Advantage

9

organization that is organized as a health mainte-

10 11

nance organization (as defined in section 2791(b)(3) of the Public Health Service Act).

12

‘‘(6) M

13 14 15

EANINGFUL 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 HR 1 PP

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2

1 2

such organization, is a meaningful EHR user (as

3

defined in section 1886(n)(3)) for an applicable

4

period specified by the Secretary.

5

‘‘(7) POSTING ON WEBSITE.—The Secretary shall 6 7

post on the Internet website of the Centers for Medi-

8

care & Medicaid Services, in an easily understandable

9

format, a list of the names, business addresses, and

10

business phone numbers of—

11

‘‘(A) each qualifying MA organization re-

12

ceiving an incentive payment under this sub-

13

section for eligible professionals of the organiza-

14

tion; and

15

‘‘(B) the eligible professionals of such organization for which such incentive payment is based.’’. (d) C

ONFORMING

A MENDMENTS .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(B) in paragraph (6)(A), by inserting after

3

‘‘under part B,’’ the following: ‘‘excluding ex-

4

penditures attributable to subsections (a)(7) and

5

(o) of section 1848,’’; and 6

(3) in subsection (f), by inserting ‘‘and for pay-

7 8

ments under subsection (l)’’ after ‘‘with the organiza-

9

tion’’.

10

(e) C ONFORMING A MENDMENTS TO E-PRESCRIBING .—

11

(1) Section 1848(a)(5)(A) of the Social Security

12

Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 13

(A) in clause (i), by striking ‘‘or any subse-

14

quent year’’ and inserting ‘‘, 2013, or 2014’’;

15

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) L

IMITATION WITH RESPECT TO EHR

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2

1 2

INCENTIVE PAYMENTS .—The

3

paragraph shall not apply to an eligible profes-

4

provisions of this

sional (or, in the case of a group practice under

5

paragraph (3)(C), to the group practice) if, for 6

the reporting period the eligible professional (or

7 8

group practice) receives an incentive payment

9

under subsection (o)(1)(A) with respect to a cer-

10

tified EHR technology (as defined in subsection

11

(o)(4)) that has the capability of electronic pre-

12

scribing.’’.

13

(f) P ROVIDING A SSISTANCE TO E LIGIBLE PROFESSIONALS

14 15

AND

C ERTAIN H OSPITALS .— (1) I N GENERAL.—The Secretary of Health and Human Services shall provide assistance to eligible professionals (as defined in section 1848(o)(5), as added by subsection (a)), Medicaid providers (as defined in section 1903(t)(2) of such Act, as added by section 4211(a)), and eligible hospitals (as defined in section 1886(n)(6)(A) of such Act, as added by section 4202(a)) located in rural or other medically underserved areas to successfully choose, implement, and use certified EHR technology (as defined in section 1848(o)(4) of the Social Security Act, as added by

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2

1 2

section 4201(a)).

3 4

(2) U SE OF ENTITIES WITH EXPERTISE .—To the extent practicable, the Secretary shall provide such

5

assistance through entities that have expertise in the 6 7 8 9 10 11 12

choice, implementation, and use of such certified EHR technology. SEC. 4202. INCENTIVES FOR HOSPITALS.

(a) INCENTIVE PAYMENT .—Section 1886 of the Social Security Act (42 U.S.C. 1395ww) is amended by adding at the end the following new subsection:

13 14 15

‘‘(n) I NCENTIVES FOR A DOPTION AND M EANINGFUL U SE OF C ERTIFIED

EHR T ECHNOLOGY.—

‘‘(1) I N GENERAL.—Subject to the succeeding provisions of this subsection, with respect to inpatient hospital services furnished by an eligible hospital during a payment year (as defined in paragraph (2)(G)), if the eligible hospital is a meaningful EHR user (as determined under paragraph (3)) for the reporting period with respect to such year, in addition to the amount otherwise paid under this section, there also shall be paid to the eligible hospital, from the Federal Hospital Insurance Trust Fund established under section 1817, an amount equal to the applicable HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

amount specified in paragraph (2)(A) for the hospital

3

for such payment year.

4

‘‘(2) PAYMENT AMOUNT .—

5

‘‘(A) I N GENERAL.—Subject to the succeeding

6

subparagraphs of this paragraph, the applicable

7 8

amount specified in this subparagraph for an

9

eligible hospital for a payment year is equal to

10

the product of the following:

11

‘‘(i) INITIAL AMOUNT .—The sum of— ‘‘(I)

12

th e

base

amount

specifie d

in

13

subparagraph (B); plus

14

‘‘(II) the discharge related amount

15

specified in subparagraph (C) for a 12month period selected by the Secretary with respect to such payment year. ‘‘(ii) M EDICARE SHARE .—The

Medicare share as

specified in subparagraph (D) for the hospital for a period selected by the Secretary with respect to such payment year. ‘‘(iii) T RANSITION FACTOR .—The transition factor specified in subparagraph (E) for the hospital for the payment year. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) B

2 3

ASE AMOUNT .—The

base amount

specified in this subparagraph is $2,000,000.

4

‘‘(C) D

ISCHARGE RELATED AMOUNT .—The

5

discharge related amount specified in this sub6

paragraph for a 12-month period selected by the

7 8

Secretary shall be determined as the sum of the

9

amount, based upon total discharges (regardless

10

of any source of payment) for the period, for

11

each discharge up to the 23,000th discharge as

12

follows:

13

‘‘(i) For the 1,150th through

14

the 9,200nd discharge, $200.

15

‘‘(ii) For the 9,201st through the 13,800th discharge, 50 percent of the amount specified in clause (i). ‘‘(iii) For the 13,801st through the 23,000th discharge, 30 percent of the amount specified in clause (i). ‘‘(D) M

EDICARE SHARE .—The

Medicare

share specified under this subparagraph for a hospital for a period selected by the Secretary for a payment year is equal to the fraction— HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(i) the numerator of which is the sum

2 3

(for such period and with respect to the hos-

4

pital) of—

5

‘‘(I) the number of inpatient-bed6

days (as established by the Secretary)

7 8

which are attributable to individuals

9

with respect to whom payment may be

10

made under part A; and

11

‘‘(II) the number of inpatient-bed- days (as

12

so established) which are attributable to

13

individuals who are enrolled with a

14

Medicare Advantage organization under

15

part C; and ‘‘(ii) the denominator of which is the product of— ‘‘(I) the total number of inpatient-bed-days with respect to the hospital during such period; and ‘‘(II) the total amount of the hospital’s charges during such period, not including any charges that are attributable to charity care (as such term is used for purposes of hospital cost reporting under this title), divided by the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

total amount of the hospital’s charges

3

during such period.

4

Insofar as the Secretary determines that data are

5

not available on charity care necessary to cal 6

culate the portion of the formula specified in

7 8

clause (ii)(II), the Secretary shall use data on

9

uncompensated care and may adjust such data

10

so as to be an appropriate proxy for charity care

11

including a downward adjustment to eliminate

12

bad debt data from uncompensated care data. In

13

the absence of the data necessary, with respect to

14

a hospital, for the Secretary to compute the

15

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) T RANSITION FACTOR SPECIFIED .— ‘‘(i) I N GENERAL .—Subject

to clause (ii), the

transition factor specified in this subparagraph for an eligible hospital for a payment year is as follows: HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(I) For the first payment year for

2 3

such hospital, 1.

4

‘‘(II) For the second

5

payment year for such hospital, 6 3

7

' 4. ‘‘(III) For the third payment year

8

for such hospital, 1' 2.

9 10

‘‘(IV) For the fourth

11

payment year for such hospital,

12 1

13

' 4. ‘‘(V) For any succeeding payment

14

year for such hospital, 0.

15

‘‘(ii) PHASE DOWN FOR ELIGIBLE HOS PITALS 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

specified in this subparagraph for such hos-

3

pital and for such year and any subsequent

4

year shall be 0.

5

‘‘(F) F ORM OF PAYMENT .—The payment 6

under this subsection for a payment year may be

7 8

in the form of a single consolidated payment or

9

in the form of such periodic installments as the

10

Secretary may specify.

11

‘‘(G) PAYMENT YEAR DEFINED .— ‘‘(i) I N GENERAL.—For purposes of this

12 13

subsection, the term ‘payment year’ means

14

a fiscal year beginning with fiscal year

15

2011. ‘‘(ii) F IRST , YEAR .—The

SECOND , ETC . PAYMENT

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 imme-

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2

1 2

diately following the first payment year for

3

that hospital.

4

‘‘‘‘(H) L

IMITATION FOR CRITICAL ACCESS

5 HOSPITALS .—In

no case shall the total amount of

6

payments made under this subsection to a

7 8

critical access hospital for all payment years ex-

9

ceed $1,500,000.

10

‘‘(3) M EANINGFUL EHR USER.—

11

‘‘(A) I N GENERAL.—For purposes of paragraph

12

(1), an eligible hospital shall be treated as

a

13

meaningful EHR user for a reporting period for a

14

payment year (or, for purposes of subsection

15

(b)(3)(B)(ix), for a reporting period under such subsection for a fiscal year) if each of the following requirements are met: ‘‘(i) M

EANINGFUL 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) I NFORMATION EXCHANGE.—The HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

eligible hospital demonstrates to the satis-

3

faction of the Secretary, in accordance with

4

subparagraph (C)(i), that during such pe-

5

riod such certified EHR technology is con6

nected in a manner that provides, in ac-

7 8

cordance with law and standards applicable

9

to the exchange of information, for the elec-

10

tronic exchange of health information to im-

11

prove the quality of health care, such as

12

promoting care coordination.

13

‘‘(iii) R EPORTING ON MEASURES USING

14

EHR .—Subject

15

to subparagraph (B)(ii) and

using such certified EHR technology, the el igible 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. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) R EPORTING ON MEASURES .—

2 3

‘‘(i) S

4

ELECTION .—The

Secretary shall

select measures for purposes of subpara-

5

graph (A)(iii) but only consistent with the

6

following:

7

‘‘(I) The Secretary shall provide

8 9

preference to clinical quality measures

10

that have been selected for purposes of

11

applying subsection (b)(3)(B)(viii) or

12

that have been endorsed by the entity 13

with a contract with the Secretary

14

under section 1890(a).

15

‘‘(II) Prior to any measure (other than a clinical quality measure that has been selected for purposes of apply ing 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) L

IMITATIONS .—The

Secretary may

not require the electronic reporting of information on clinical quality measures HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under subparagraph (A)(iii) unless the Sec-

3

retary has the capacity to accept the infor-

4

mation electronically, which may be on a

5

pilot basis. 6

‘‘(iii) C

7

OORDINATION OF REPORTING OF

INFORMATION .—In

8

selecting such measures, and in

9

establishing the form and manner for reporting

10

measures under subparagraph (A)(iii), the

11

Secretary shall seek to avoid redundant or

12

duplicative reporting with reporting otherwise

13

required, including reporting under subsection

14

(b)(3)(B)(viii). ‘‘(C) D EMONSTRATION OF

15

MEANINGFUL USE OF CERTIFIED EHR TECHNOLOGY AND INFORMATION EXCHANGE .—

‘‘(i) I N GENERAL.—A hospital may satisfy the demonstration requirement of clauses (i) and (ii) of subparagraph (A) through means specified by the Secretary, which may include— ‘‘(I) an attestation; ‘‘(II) the submission of claims with appropriate coding (such as a code indicating that inpatient care was HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

documented using certified EHR

3

technology);

4

‘‘(III) a survey response;

5

‘‘(IV) reporting under subpara-

6

graph (A)(iii); and

7

‘‘(V) other means specified by the

8

Secretary.

9 10

‘‘(ii) U SE OF PART D DATA.—Notwithstanding

11

sections 1860D–15(d)(2)(B) and 1860D–15(f)(2),

12

the Secretary may use data regarding drug 13

claims submitted for purposes of section

14

1860D–15 that are necessary for purposes of

15

subparagraph (A). ‘‘(4) A PPLICATION .— ‘‘(A) L IMITATIONS ON REVIEW .—There shall be no administrative or judicial review under section 1869, section 1878, or otherwise of the determination of any incentive payment under this subsection and the payment adjustment under subsection (b)(3)(B)(ix), including the determination of a meaningful EHR user under paragraph (3), determination of measures applicable to services furnished by eligible hospitals under this subsection, and the exception under HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

subsection (b)(3)(B)(ix)(II).

2 3

‘‘(B) POSTING ON WEBSITE.—The Secretary

4

shall post on the Internet website of the Centers

5

for Medicare & Medicaid Services, in an easily 6

understandable format, a list of the names of the

7 8

eligible hospitals that are meaningful EHR users

9

under this subsection or subsection (b)(3)(B)(ix)

10

and other relevant data as determined appro-

11

priate by the Secretary. The Secretary shall en-

12

sure that a hospital has the opportunity to review

13

the other relevant data that are to be made

14

public with respect to the hospital prior to such

15

data being made public. ‘‘(5) C

ERTIFIED EHR TECHNOLOGY DEFINED .—

The

term ‘certified EHR technology’ has the meaning given such term in section 1848(o)(4). ‘‘(6) D

EFINITIONS .—For

purposes of this sub-

section: ‘‘(A) E LIGIBLE HOSPITAL .—The term ‘eligible hospital’ means— ‘‘(i) a subsection (d) hospital; and ‘‘(ii) a critical access hospital (as defined in section 1861(mm)(1)). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

‘‘(B) R

2 3

EPORTING PERIOD .—The

term ‘re-

porting period’ means any period (or periods),

4

with respect to a payment year, as specified by

5

the Secretary.’’. 6

(b) INCENTIVE M ARKET B ASKET A DJUSTMENT .—

7 8

(1) I N GENERAL.—Section 1886(b)(3)(B) of the

9

Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is

10

amended—

11

(A) in clause (viii)(I), by inserting ‘‘(or, be-

12

ginning with fiscal year 2016, by one-quarter)’’ 13

after ‘‘2.0 percentage points’’; and

14

(B) by adding at the end the following new

15

clause: ‘‘(ix)(I) For purposes of clause (i) for fiscal year 2015 and each subsequent fiscal year, in the case of an eligible hospital (as defined in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined in subsection (n)(3)) for the reporting period for such fiscal year, three-quarters of the applicable percentage increase otherwise applicable under clause (i) for such fiscal year shall be reduced by 33 1' 3 percent for fiscal year 2015, 66 2' 3 percent for fiscal year 2016, and 100 percent for fiscal year 2017 and each subsequent fiscal year. Such reduction shall apply only HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

with respect to the fiscal year involved and the Secretary

3

shall not take into account such reduction in computing

4

the applicable percentage increase under clause (i) for a

5

subsequent fiscal year. 6 7

‘‘(II) The Secretary may, on a case-by-case basis, ex-

8

empt a subsection (d) hospital from the application of sub-

9

clause (I) with respect to a fiscal year if the Secretary

10 11

determines, subject to annual renewal, that requiring such hospital to be a meaningful EHR user during such fiscal

12 13 14 15

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 ag gregate 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 HR 1 PP

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2

1 2

previous provisions of this clause. The State shall report to

3

the Secretary the methodology it will use to make the pay-

4

ment adjustment under the previous sentence.

5

‘‘(IV) For purposes of this clause, the term ‘reporting 6 7

period’ means, with respect to a fiscal year, any period (or

8

periods), with respect to the fiscal year, as specified by the

9

Secretary.’’.

10 11

(2) C

RITICAL ACCESS

HOSPITALS .—Section

1814(l) of the Social Security Act (42 U.S.C. 1395f(l))

12 13

is amended— (A) in subparagraph (1), by striking ‘‘para-

14

graph (2)’’ and inserting ‘‘paragraphs (2) and

15

(3)’’; and (B) by adding at the end the following new paragraph: ‘‘(3)(A) Subject to subparagraph (B), for fiscal year 2015 and each subsequent fiscal year, in the case of a critical access hospital that is not a meaningful EHR user (as defined in section 1886(n)(3)) for the reporting period for such fiscal year, paragraph (1) shall be applied by substituting the applicable percent under subparagraph (C) for the percent described in such paragraph (1). ‘‘(B) The Secretary may, on a case-by-case basis, exHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

empt a critical access hospital from the application of sub-

3

paragraph (A) with respect to a fiscal year if the Secretary

4

determines, subject to annual renewal, that requiring such

5

hospital to be a meaningful EHR user during such fiscal 6 7

year would result in a significant hardship, such as in the

8

case of a hospital in a rural area without sufficient Internet

9

access. In no case may a hospital be granted an exemption

10 11

under this subparagraph for more than 5 years. ‘‘(C) The percent described in this subparagraph is—

12

‘‘(i) for fiscal year 2015, 100.66 percent;

13

‘‘(ii) for fiscal year 2016, 100.33 percent; and

14 15

‘‘(iii) for fiscal year 2017 and each subsequent fiscal year, 100 percent.’’. (c) A PPLICATION TO C ERTAIN MA-A FFILIATED E LIGIBLE H OSPITALS .—Section 1853 of the Social Security Act (42 U.S.C. 1395w–23), as amended by section 4201(c), is further amended by adding at the end the following new subsection: ‘‘(m) A PPLICATION OF E LIGIBLE H OSPITAL INCENTIVES FOR C ERTAIN MA O

RGANIZATIONS FOR A DOPTION AND M EANINGFUL

U SE OF C ERTIFIED EHR T ‘‘(1) A

ECHNOLOGY.—

PPLICATION .—Subject

to paragraphs (3)

and (4), in the case of a qualifying MA organization, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the provisions of sections 1814(l)(3), 1886(n), and

3

1886(b)(3)(B)(ix) shall apply with respect to eligible

4

hospitals described in paragraph (2) of the organiza-

5

tion which the organization attests under subsection 6 7

(l)(6) to be meaningful EHR users in a similar manner

8

as they apply to eligible hospitals under such sections.

9

Incentive payments under paragraph (3) shall be

10 11

made to and payment adjustments under paragraph (4) shall apply to such qualifying organizations.

12

‘‘(2) E LIGIBLE HOSPITAL DESCRIBED .—With respect

13 14 15

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) E

LIGIBLE

HOSPITAL

INCENTIVE

PAYMENTS .—

‘‘(A) I N 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 HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

estimated amount in the aggregate that would be

3

payable if payment for services furnished by

4

such hospitals was payable under part A instead

5

of this part. In implementing the previous sen6

tence, the Secretary—

7 8

‘‘(i) shall, insofar as data to determine

9

the discharge related amount under section

10

1886(n)(2)(C) for an eligible hospital are

11

not available to the Secretary, use such al-

12

ternative data and methodology to estimate

13

such discharge related amount as the Sec-

14

retary determines appropriate; and

15

‘‘(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

A or individuals enrolled in an MA plan

3

under a Medicare Advantage organization

4

under this part as a proportion of the total

5

number of patient-bed-days (or discharges) 6

with respect to such hospital during such

7 8

period.

9

‘‘(B) A

10

VOIDING DUPLICATION OF PAYMENTS .—

‘‘(i) I N GENERAL.—In the case of a

11

hospital that for a payment year is an eli-

12

gible hospital described in paragraph (2)

13

and for which at least one-third of their dis-

14

charges (or bed-days) of Medicare patients

15

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) M ETHODS .—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— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

‘‘(I) to ensure that duplicate pay-

3

ments are not made with respect to an

4

eligible hospital both under this sub-

5

section and under section 1886(n); and 6

‘‘(II) to collect data from Medicare

7 8

Advantage organizations to ensure

9

against such duplicate payments.

10

‘‘(4) PAYMENT ADJUSTMENT .—

11

‘‘(A) Subject to paragraph (3), in the case

12

of a qualifying MA organization (as defined in 13

section 1853(l)(5)), if, according to the attestation

14

of the organization submitted under subsection

15

(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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

otherwise provided under this section for such

3

period.

4

‘‘(B) S

PECIFIED PERCENT .—The

percent

5

specified under this subparagraph for a year is 6

100 percent minus a number of percentage

7

points equal to the product of—

8 9

‘‘(i) the number of the percentage point

10

reduction effected under section

11

1886(b)(3)(B)(ix)(I) for the period; and

12

‘‘(ii) the Medicare hospital expenditure

13

proportion specified in subparagraph (C)

14

for the year.

15

‘‘(C) M

EDICARE 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) A MENT .—In

PPLICATION OF PAYMENT ADJUST -

the case that a qualifying MA orga-

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2

1 2

cable period, the Secretary shall apply the pay-

3

ment adjustment under this paragraph based on

4

a methodology specified by the Secretary, taking

5

into account the proportion of such eligible hos6

pitals, or discharges from such hospitals, that are

7 8

not meaningful EHR users for such period.

9

‘‘(5) P OSTING ON WEBSITE.—The Secretary shall

10

post on the Internet website of the Centers for Medi-

11

care & Medicaid Services, in an easily understandable

12 13

format— ‘‘(A) a list of the names, business addresses,

14

and business phone numbers of each qualifying

15

MA organization receiving an incentive payment under this subsection for eligible hospitals described in paragraph (2); and ‘‘(B) a list of the names of the eligible hospitals for which such incentive payment is based.’’. (d) C ONFORMING A MENDMENTS .— (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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

section 1886(d)(3)(B)(ix)(III),’’ after ‘‘then’’;

3

and

4

(B) by adding at the end the following: ‘‘For

5

purposes of applying paragraph (3), there shall 6

be taken into account incentive payments, and

7 8

payment adjustments under subsection

9

(b)(3)(B)(ix) or (n) of section 1886.’’.

10 11

(2) Section 1851(i)(1) of the Social Security Act (42 U.S.C. 1395w–21(i)(1)) is amended by striking

12 13 14

‘‘and 1886(h)(3)(D)’’ and inserting ‘‘1886(h)(3)(D), and 1853(m)’’. (3) Section 1853 of the Social Security Act (42

15

U.S.C. 1395w–23), as amended by section 4311(d)(1), is amended— (A) in subsection (c)— (i) in paragraph (1)(D)(i), by striking ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 1886(n)’’; and (ii) in paragraph (6)(A), by inserting ‘‘and subsections (b)(3)(B)(ix) and (n) of section 1886’’ after ‘‘section 1848’’; and (B) in subsection (f), by inserting ‘‘and subsection (m)’’ after ‘‘under subsection (l)’’. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTA TION FUNDING.

3 4

(i) PREMIUM H OLD H ARMLESS .—

5 6

(1) IN GENERAL.—Section 1839(a)(1) of the Social Security Act (42 U.S.C. 1395r(a)(1)) is amended by

7 8 9

adding at the end the following: ‘‘In applying this paragraph there shall not be taken into account addi-

10

tional payments under section 1848(o) and section

11

1853(l)(3) and the Government contribution under

12

section 1844(a)(3).’’.

13

(2) P AYMENT .—Section 1844(a) of such Act (42 14 15

U.S.C. 1395w(a)) is amended— (A) in paragraph (2), by striking the period at the end and inserting ‘‘; plus’’; and (B) by adding at the end the following new paragraph: ‘‘(3) a Government contribution equal to the amount of payment incentives payable under sections 1848(o) and 1853(l)(3).’’. (b) IMPLEMENTATION FUNDING .—In addition to funds otherwise available, out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Secretary of Health and Human Services for the Center for HR 1 PP

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1 2

Medicare & Medicaid Services Program Management Ac-

3

count, $100,000,000 for each of fiscal years 2009 through

4

2015 and $45,000,000 for each succeeding fiscal year

5

through fiscal year 2018, which shall be available for pur6 7

poses of carrying out the provisions of (and amendments

8

made by) this part. Amounts appropriated under this sub-

9

section for a fiscal year shall be available until expended.

10

SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT

11

MEDICAL EDUCATION (IME) ADJUSTMENT

12 13

FACTOR FOR FISCAL YEAR 2009.

(a) I N G ENERAL.—Section 412.322 of title 42, Code of

14 15

Federal Regulations, shall be applied without regard to paragraph (c) of such section, and the Secretary of Health and Human Services shall recompute payments for discharges occurring on or after October 1, 2008, as if such paragraph had never been in effect. (b) N O E FFECT ON S UBSEQUENT YEARS .—Nothing in subsection (a) shall be construed as having any effect on the application of paragraph (d) of section 412.322 of title 42, Code of Federal Regulations. SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT IN CENTIVES FOR PROVIDERS NOT RECEIVING OTHER INCENTIVE PAYMENTS.

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1 2

(a) S TUDY.—

3

(1) I N GENERAL.—The Secretary of Health and

4

Human Services shall conduct a study to determine

5

the extent to which and manner in which payment

6 7

incentives (such as under title XVIII or XIX of the

8

Social Security Act) and other funding for purposes of

9

implementing and using certified EHR technology (as

10 11

defined in section 1848(o)(4) of the Social Security Act, as added by section 4311(a)) should be made

12

available to health care providers who are receiving 13 14 15

minimal or no payment incentives or other funding under this Act, under title XVIII or XIX of such Act, or otherwise, for such purposes. (2) D

ETAILS OF STUDY.—Such

study shall include

an examination of— (A) the adoption rates of certified EHR technology (as so defined) by such health care providers; (B) the clinical utility of such technology by such health care providers; (C) whether the services furnished by such health care providers are appropriate for or would benefit from the use of such technology; HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(D) the extent to which such health care

2 3

providers work in settings that might otherwise

4

receive an incentive payment or other funding

5

under this Act, title XVIII or XIX of the Social 6

Security Act, or otherwise;

7 8

(E) the potential costs and the potential

9

benefits of making payment incentives and other

10

funding available to such health care providers;

11

and

12

(F) any other issues the Secretary deems to

13

be appropriate.

14

(b) R

15

EPORT .—Not

later than June 30, 2010, the Sec-

retary shall submit to Congress a report on the findings and conclusions of the study conducted under subsection (a). SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE HEALTH INFORMATION TECHNOLOGY SYS TEMS.

(a) IN G ENERAL.— (1) S

TUDY.—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

Service, the Secretary of Defense, the Director of the

3

Agency for Healthcare Research and Quality, the Ad-

4

ministrator of the Health Resources and Services Ad-

5

ministration, and the Chairman of the Federal Com6 7

munications Commission, conduct a study on— (A) the current availability of open source

8 9

health information technology systems to Federal

10

safety net providers (including small, rural pro-

11

viders);

12

(B) the total cost of ownership of such sys-

13

tems in comparison to the cost of proprietary

14

commercial products available;

15

(C) the ability of such systems to respond to the needs of, and be applied to, various popu lations (including children and disabled individuals); and (D) the capacity of such systems to facilitate interoperability. (2) C

ONSIDERATIONS .—In

conducting the study

under paragraph (1), the Secretary of Health and Human Services shall take into account the circumstances of smaller health care providers, health care providers located in rural or other medically unHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

derserved areas, and safety net providers that deliver

3

a significant level of health care to uninsured individ-

4

uals, Medicaid beneficiaries, SCHIP beneficiaries,

5

and other vulnerable individuals. 6 7

(b) R EPORT .—Not later than October 1, 2010, the Sec-

8

retary of Health and Human Services shall submit to Con-

9

gress a report on the findings and the conclusions of the

10

study conducted under subsection (a), together with rec-

11

ommendations for such legislation and administrative ac-

12 13

tion as the Secretary determines appropriate.

Subtitle B—Medicaid Funding

14 15

SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPER ATION PAYMENTS; IMPLEMENTATION FUND ING.

(a) IN G ENERAL.—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

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2

1

(C) by adding at the end the following new

2 3

subparagraph:

4

‘‘(F)(i) 100 percent of so much of the sums

5

expended during such quarter as are attributable 6

to payments for certified EHR technology (and

7 8

support services including maintenance and

9

training that is for, or is necessary for the adop-

10

tion and operation of, such technology) by Med-

11

icaid providers described in subsection (t)(1);

12

and

13 14 15

‘‘(ii) 90 percent of so much of the sums expended during such quarter as are attributable to payments for reasonable administrative expenses related to the administration of payments described in clause (i) if the State meets the condition described in subsection (t)(9); plus’’; and (2) by inserting after subsection (s) the following new subsection: ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the payments for certified EHR technology (and support serv ices including maintenance that is for, or is necessary for the operation of, such technology) by Medicaid providers described in this paragraph are payments made by the State in accordance with this subsection of the applicable HR 1 PP

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1

2

2

percent of the net allowable costs of Medicaid providers

3

(as defined in paragraph (2)) for such technology (and

4

support services).

5

‘‘(B) For purposes of subparagraph (A), the term ‘ap6 7

plicable percent’ means— ‘‘(i) in the case of a Medicaid provider described

8 9

in paragraph (2)(A), 85 percent;

10 11

‘‘(ii) in the case of a Medicaid provider described in clause (i) or (ii) of paragraph (2)(B), 100

12 13

percent; and ‘‘(iii) in the case of a Medicaid provider de-

14 15

scribed in clause (iii) of paragraph (2)(B), a percent specified by the Secretary, but not less than 85 percent. ‘‘(2) In this subsection and subsection (a)(3)(F), the term ‘Medicaid provider’ means— ‘‘(A) an eligible professional (as defined in paragraph (3)(B)) who is not hospital-based and has at least 30 percent of the professional’s patient volume (as estimated in accordance with standards established by the Secretary) attributable to individuals who are receiving medical assistance under this title; and HR 1 PP

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‘‘(B)(i) a children’s hospital, (ii) an acute-care

2 3 4

hospital that is not described in clause (i) and that has at least 10 percent of the hospital’s patient volume

5

(as estimated in accordance with standards es6 7

tablished by the Secretary) attributable to individuals

8

who are receiving medical assistance under this title,

9

or (iii) a Federally-qualified health center or rural

10

health clinic that has at least 30 percent of the cen-

11

ter’s or clinic’s patient volume (as estimated in ac-

12 13 14 15

cordance with standards established by the Secretary) attributable to individuals who are receiving medical assistance under this title. An eligible professional shall not qualify as a Medicaid provider under this subsection unless the professional has waived, in a manner specified by the Secretary, any right to payment under section 1848(o) with respect to the adoption or support of certified EHR technology by the eligible professional. In applying clauses (ii) and (iii) of subparagraph (B), the standards established by the Secretary for patient volume shall include individuals enrolled in a Medicaid managed care plan (under section 1903(m) or section 1932). ‘‘(3) In this subsection and subsection (a)(3)(F): HR 1 PP

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‘‘(A) The term ‘certified EHR technology’ means

2 3 4

a qualified electronic health record (as defined in 3000(13) of the Public Health Service Act) that is cer-

5

tified pursuant to section 3001(c)(5) of such Act as 6 7

meeting standards adopted under section 3004 of such

8

Act that are applicable to the type of record involved

9

(as determined by the Secretary, such as an ambula-

10

tory electronic health record for office-based physi-

11

cians or an inpatient hospital electronic health record

12 13

for hospitals). ‘‘(B) The term ‘eligible professional’ means a

14 15

physician as defined in paragraphs (1) and (2) of section 1861(r), and includes a nurse mid-wife and a nurse practitioner. ‘‘(C) The term ‘hospital-based’ means, with respect to an eligible professional, a professional (such as a pathologist, anesthesiologist, or emergency physician) who furnishes substantially all of the individual’s professional services in a hospital setting (whether inpatient or outpatient) and through the use of the facilities and equipment, including qualified electronic health records, of the hospital. ‘‘(4)(A) The term ‘allowable costs’ means, with HR 1 PP

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2

1 2

respect to certified EHR technology of a Medicaid

3

provider, costs of such technology (and support services

4

including mainte nance and training that is for, or is

5

necessary for the adoption and operation of, such 6 7 8 9 10 11

technology) as determined by the Secretary to be reasonable. ‘‘(B) The term ‘net allowable costs’ means allowable costs reduced by any payment that is made to the Medicaid provider involved from any other source that is directly at-

12 13 14 15

tributable to payment for certified EHR technology or services described in subparagraph (A). ‘‘(C) In no case shall— ‘‘(i) the aggregate allowable costs under this subsection (covering one or more years) with respect to a Medicaid provider described in paragraph (2)(A) for purchase and initial implementation of certified EHR technology (and services described in subparagraph (A)) exceed $25,000 or include costs over a period of longer than 5 years; ‘‘(ii) for costs not described in clause (i) relating to the operation, maintenance, or use of certified EHR technology, the annual allowable costs under this subsection with respect to such a Medicaid proHR 1 PP

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2

1 2

vider for costs not described in clause (i) for any year

3

exceed $10,000;

4

‘‘(iii) payment described in paragraph (1) for

5

costs described in clause (ii) be made with respect to 6 7 8

such a Medicaid provider over a period of more than 5 years;

9 10 11

‘‘(iv) the aggregate allowable costs under this subsection with respect to such a Medicaid provider for all costs exceed $75,000; or

12

‘‘(v) the allowable costs, whether for purchase

13 14 15

and initial implementation, maintenance, or otherwise, for a Medicaid provider described in paragraph (2)(B)(iii) exceed such aggregate or annual limitation as the Secretary shall establish, based on an amount determined by the Secretary as being adequate to adopt and maintain certified EHR technology, consistent with paragraph (6). ‘‘(5) Payments described in paragraph (1) are not in accordance with this subsection unless the following requirements are met: ‘‘(A) The State provides assurances satisfactory to the Secretary that amounts received under subsection (a)(3)(F) with respect to costs of a Medicaid HR 1 PP

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2

1 2

provider are paid directly to such provider without

3

any deduction or rebate.

4

‘‘(B) Such Medicaid provider is responsible for

5

payment of the costs described in such paragraph that 6 7

are not provided under this title. ‘‘(C) With respect to payments to such Medicaid

8 9 10 11

provider for costs other than costs related to the initial adoption of certified EHR technology, the Medicaid provider demonstrates meaningful use of certified

12 13 14 15

EHR technology through a means that is approved by the State and acceptable to the Secretary, and that may be based upon the methodologies applied under section 1848(o) or 1886(n). In establishing such means, which may include the reporting of clinical quality measures to the State, the State shall ensure that populations with unique needs, such as children, are appropriately addressed. ‘‘(D) To the extent specified by the Secretary, the certified EHR technology is compatible with State or Federal administrative management systems. ‘‘(6)(A) In no case shall the payments described in paragraph (1), with respect to a hospital, exceed in the aggregate the product of— HR 1 PP

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2

1

‘‘(i) the overall hospital EHR amount for

2 3 4

the hospital computed under subparagraph (B); and

5

‘‘(ii) the Medicaid share for such hospital com6 7

puted under subparagraph (C).

8

‘‘(B) For purposes of this paragraph, the overall hos-

9

pital EHR amount, with respect to a hospital, is the sum of

10 11

the applicable amounts specified in section 1886(n)(2)(A) for such hospital for the first 4 payment years (as estimated

12 13 14 15

by the Secretary) determined as if the Medicare share specified in clause (ii) of such section were 1. The Secretary shall publish in the Federal Register the overall hospital EHR amount for each hospital eligible for payments under this subsection. In computing amounts under clause (ii) for payment years after the first payment year, the Secretary shall assume that in subsequent payment years discharges increase at the average annual rate of growth of the most recent three years for which discharge data are available. ‘‘(C) The Medicaid share computed under this subparagraph, for a hospital for a period specified by the Secretary, shall be calculated in the same manner as the Medicare share under section 1886(n)(2)(D) for such a hospital HR 1 PP

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1

2

2

and period, except that there shall be substituted for the

3

numerator under clause (i) of such section the amount that

4

is equal to the number of inpatient-bed-days (as established

5

by the Secretary) which are attributable to individuals who 6 7

are receiving medical assistance under this title and who

8

are not described in section 1886(n)(2)(D)(i). In computing

9

inpatient-bed-days under the previous sentence, the Sec-

10

retary shall take into account inpatient-bed-days attrib-

11

utable to inpatient-bed-days that are paid for individuals

12 13 14 15

enrolled in a Medicaid managed care plan (under section 1903(m) or section 1932). ‘‘(7) With respect to health care providers other than hospitals, the Secretary shall establish and implement a detailed process to ensure coordination of the different programs for payment of such health care providers for adoption or use of health information technology (including certified EHR technology), as well as payments for such health care providers provided under this title or title XVIII, to assure no duplication of funding. The Secretary shall promulgate regulations to carry out the preceding sentence. ‘‘(8) In carrying out paragraph (5)(C), the State and Secretary shall seek, to the maximum extent practicable, to avoid duplicative requirements from Federal and State HR 1 PP

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1

2

2

Governments to demonstrate meaningful use of certified

3

EHR technology under this title and title XVIII. In doing

4

so, the Secretary may deem satisfaction of requirements for

5

such meaningful use for a payment year under title XVIII 6 7

to be sufficient to qualify as meaningful use under this sub-

8

section. The Secretary may also specify the reporting peri-

9

ods under this subsection in order to carry out this para-

10 11

graph. ‘‘(9) In order to be provided Federal financial partici-

12 13 14 15

pation 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, in cluding 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, HR 1 PP

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2

1 2

subject to applicable laws and regulations

3

governing such exchange.

4

‘‘(10) The Secretary shall periodically submit reports

5

to the Committee on Energy and Commerce of the House 6 7

of Representatives and the Committee on Finance of the

8

Senate on status, progress, and oversight of payments

9

under paragraph (1).’’.

10 11

(b) IMPLEMENTATION FUNDING .—In addition to funds otherwise available, out of any funds in the Treasury not

12 13 14 15

otherwise appropriated, there are appropriated to the Secretary of Health and Human Services for the Center for Medicare & Medicaid Services Program Management Account, $40,000,000 for each of fiscal years 2009 through 2015 and $20,000,000 for each succeeding fiscal year through fiscal year 2018, which shall be available for purposes of carrying out the provisions of (and the amendments made by) this part. Amounts appropriated under this subsection for a fiscal year shall be available until expended. (c) HHS R

EPORT ON IMPLEMENTATION OF D ETAILED

PROCESS TO A SSURE N O D UPLICATION OF FUNDING .—Not later than July 1, 2012, the Secretary of Health and Human Services shall submit to Congress a report on the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 establishment and implementation of the detailed process under section 1903(t)(7) of the Social Security Act, as added by subsection (a), together with recommendations for such legislation and administrative action as the Secretary determines appropriate.

TITLE V—STATE FISCAL RELIEF SEC. 5000. PURPOSES; TABLE OF CONTENTS.

(a) PURPOSES .—The purposes of this title are as follows: (1) To provide fiscal relief to States in a period of economic downturn. (2) To protect and maintain State Medicaid programs during a period of economic downturn, including by helping to avert cuts to provider payment rates and benefits or services, and to prevent constrictions of income eligibility requirements for such programs, but not to promote increases in such requirements.

1(b) T

ABLE OF C ONTENTS .—The

table of contents for

2 this title is as follows: TITLE V—STATE FISCAL RELIEF Sec. 5000. Purposes; table of contents. Sec. 5001. Temporary increase of Medicaid FMAP.

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2

1

Sec. 5002. Extension and update of special rule for increase of Medicaid DSH allotments for low DSH States. Sec. 5003. Payment of Medicare liability to States as a result of the Special Disability Workload Project. Sec. 5004. Funding for the Department of Health and Human Services Office of the Inspector General. Sec. 5005. GAO study and report regarding State needs during periods of national economic downturn.

2 3 4 5 6

3

SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

7

4(a) PERMITTING M AINTENANCE OF FMAP.—Subject to

8

5 subsections (e), (f), and (g), if the FMAP determined with

9 10

6 out regard to this section for a State for— 7(1) fiscal year 2009 is less than the FMAP as so

11

8determined for fiscal year 2008, the FMAP for the

12 13

9State for fiscal year 2008 shall be substituted for the

14

10State’s FMAP for fiscal year 2009, before the applica

15

11

tion of this section; 12(2) fiscal year 2010 is less than the FMAP as so 13determined for fiscal year 2008 or fiscal year 2009 14(after the application of paragraph (1)), the greater 15of such FMAP for the State for fiscal year 2008 or 16fiscal year 2009 shall be substituted for the State’s 17FMAP for fiscal year 2010, before the application of

18

this section; and 19(3) fiscal year 2011 is less than the FMAP as so 20determined 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 HR 1 PP

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2

1 2 3 4 5 6

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) G ENERAL 7.6 P ERCENTAGE POINT INCREASE .— Subject to subsections (e), (f), and (g), for each State for calendar quarters during the recession adjustment period

7

(as defined in subsection (h)(2)) , the FMAP (after the ap8 9

plication of subsection (a)) shall be increased (without re-

10

gard to any limitation otherwise specified in section

11

1905(b) of the Social Security Act) by 7.6 percentage

12

points.

13

(c) A DDITIONAL R ELIEF B ASED ON INCREASE IN U N -

14 15

EMPLOYMENT .—

(1) IN GENERAL.—Subject to subsections (e), (f), and (g), if a State is a qualifying State under paragraph (2) for a calendar quarter occurring during the recession adjustment period, the FMAP for the State shall be further increased by the number of percentage points equal to the product of the State percentage applicable for the State under section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) after the application of subsections (a) and (b) and the applicable percent determined in paragraph (3) for the calendar quarter (or, if greater, HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

for a previous such calendar quarter, subject to

3

paragraph (4)) .

4

(2) Q UALIFYING CRITERIA.—

5

(A) I N GENERAL.—For purposes of para-

6

graph (1), a State qualifies for additional relief

7 8

under this subsection for a calendar quarter oc-

9

curring during the recession adjustment period if

10

the State is 1 of the 50 States or the District of

11

Columbia and the State satisfies any of the fol-

12

lowing criteria for the quarter: 13

(i) An increase of at least 1.5 percent-

14

age points, but less than 2.5 percentage

15

points, in the average monthly unemployment rate, seasonally adjusted, for the State or District, as determined by comparing months in the most recent previous 3-consecutive month period for which data are available for the State or District to the lowest average monthly unemployment rate, seasonally adjusted, for the State or District for any 3-consecutive-month period preceding that period and beginning on or after January 1, 2006 (based on the most HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

recently available monthly publications of

3

the Bureau of Labor Statistics of the De-

4

partment of Labor).

5

(ii) An increase of at least 2.5 percent6

age points, but less than 3.5 percentage

7 8

points, in the average monthly unemploy-

9

ment rate, seasonally adjusted, for the State

10

or District (as so determined).

11

(iii) An increase of at least 3.5 per-

12

centage points for the State or District, in

13

the average monthly unemployment rate,

14

seasonally adjusted, for the State or District

15

(as so determined). (B) M

AINTENANCE 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) A

PPLICABLE PERCENT .—For

purposes of

paragraph (1), the applicable percent is— (A) 2.5 percent, if the State satisfies the criteria described in paragraph (2)(A)(i) for the HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

calendar quarter;

2 3

(B) 4.5 percent if the State satisfies the cri-

4

teria described in paragraph (2)(A)(ii) for the

5

calendar quarter; and 6

(C) 6.5 percent if the State satisfies the cri-

7 8

teria described in paragraph (2)(A)(iii) for the

9

calendar quarter.

10 11

(4) M

AINTENANCE OF HIGHER PERCENTAGE RE

DUCTION FOR PERIOD AFTER LOWER PERCENTAGE

12 DEDUCTION WOULD OTHERWISE TAKE EFFECT .—

13

(A) H

14

OLD HARMLESS PERIOD .—If

the per-

centage reduction applied to a State under para-

15

graph (3) for any calendar quarter in the recession adjustment period beginning on or after January 1, 2009, and ending before July 1, 2010, (determined without regard to this paragraph) is less than the percentage reduction applied for the preceding quarter (as so determined), the higher percentage reduction shall continue in effect for each subsequent calendar quarter ending before July 1, 2010. (B) N

OTICE OF DECREASE IN PERCENTAGE

REDUCTION .—The

Secretary shall notify a State at

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2

1 2

least 3 months prior to applying any lower

3

percentage reduction to the State under para-

4

graph (3).

5

(d) I NCREASE IN C AP ON M EDICAID PAYMENTS TO 6 7

T ERRITORIES .—Subject to subsections (f) and (g), with re-

8

spect to entire fiscal years occurring during the recession

9

adjustment period and with respect to fiscal years only a

10 11

portion of which occurs during such period (and in proportion to the portion of the fiscal year that occurs during such

12 13 14 15

period), the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsections (f) and (g) of section 1108 of the Social Security Act (42 6 U.S.C. 1308) shall each be increased by 15.2 percent. (e) S

COPE OF A PPLICATION .—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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

subsections (a) and (b) shall apply to payments under

3

part E of title IV of such Act (42 U.S.C. 670 et seq.));

4

(3) payments under title XXI of such Act

5

(42 U.S.C. 1397aa et seq.); 6

(4) any payments under title XIX of such Act that

7 8

are based on the enhanced FMAP described in

9

section 2105(b) of such Act (42 U.S.C. 1397ee(b)); or

10 11

(5) any payments under title XIX of such Act that are attributable to expenditures for medical assistance

12 13 14 15

provided to individuals made eligible under a State plan under title XIX of the Social Security Act (including under any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) because of income standards (expressed as a percentage of the poverty line) for eligibility for medical assistance that are higher than the income standards (as so expressed) for such eligibility as in effect on July 1, 2008. (f) S TATE INELIGIBILITY.— (1) M

AINTENANCE OF ELIGIBILITY REQUIREMENTS .—

(A) I N 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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

an increase in a cap amount under subsection

3

(d), if eligibility standards, methodologies, or

4

procedures under its State plan under title XIX of

5

the Social Security Act (including any waiver 6

under such title or under section 1115 of such

7 8

Act (42 U.S.C. 1315)) are more restrictive than

9

the eligibility standards, methodologies, or

10

procedures, respectively, under such plan (or

11

waiver) as in effect on July 1, 2008.

12

(B) S TATE REINSTATEMENT OF ELIGIBILITY

13

PERMITTED .—Subject

14

to subparagraph (C), a

State that has restricted eligibility standards,

15

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 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

July 1, 2008.

2 3

(C) S

4

PECIAL RULES .—A

State shall not be

ineligible under subparagraph (A)—

5

(i) for the calendar quarters before 6

July 1, 2009, on the basis of a restriction

7 8

that was applied after July 1, 2008, and be

9

fore the date of the enactment of this Act, if

10

the State prior to July 1, 2009, has rein-

11

stated eligibility standards, methodologies,

12

or procedures that are no more restrictive

13

than the eligibility standards, methodolo-

14

gies, or procedures, respectively, under

15

such plan (or waiver) as in effect on July 1, 2008; or (ii) on the basis of a restriction that was directed to be made under State law as of July 1, 2008, and would have been in effect as of such date, but for a delay in the request for, and approval of, a waiver under section 1115 of such Act with respect to such restriction. (2) C

OMPLIANCE WITH PROMPT PAY REQUIRE -

MENTS .—No

State shall be eligible for an increased

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2

1 2

FMAP rate as provided under this section for any

3

claim submitted by a provider subject to the terms of

4

section 1902(a)(37)(A) of the Social Security Act (42

5

U.S.C. 1396a(a)(37)(A)) during any period in which 6 7

that State has failed to pay claims in accordance with

8

section 1902(a)(37)(A) of such Act. Each State shall

9

report to the Secretary, no later than 30 days

10 11

following the 1st day of the month, its compliance with the requirements of section 1902(a)(37)(A) of the

12 13 14

Social Security Act as they pertain to claims made for covered services during the preceding month. (3) N O WAIVER AUTHORITY.—The Secretary may

15

not waive the application of this subsection or subsection (g) under section 1115 of the Social Security Act or otherwise. (g) R EQUIREMENTS .— (1) I N GENERAL.—A State may not deposit or credit the additional Federal funds paid to the State as a result of this section to any reserve or rainy day

fund

maintained by the State. (2) S

TATE REPORTS .—Each

State that is paid

additional Federal funds as a result of this section shall, not later than September 30, 2011, submit a reHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

port to the Secretary, in such form and such manner

3

as the Secretary shall determine, regarding how the

4

additional Federal funds were expended.

5

(3) A

DDITIONAL REQUIREMENT FOR CERTAIN

6 7

STATES .—In

the case of a State that requires political

8

subdivisions within the State to contribute toward the

9

non-Federal share of expenditures under the State

10 11

Medicaid plan required under section 1902(a)(2) of the Social Security Act (42 U.S.C. 1396a(a)(2)), the

12 13 14 15

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) D EFINITIONS .—In this section, except as otherwise provided: (1) FMAP.—The term ‘‘FMAP’’ means the FedHR 1 PP

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2

1 2

eral medical assistance percentage, as defined in sec-

3

tion 1905(b) of the Social Security Act (42 U.S.C.

4

1396d(b)), as determined without regard to this sec-

5

tion except as otherwise specified. 6

(2) P OVERTY LINE.—The term ‘‘poverty line’’ has

7 8

the meaning given such term in section 673(2) of the

9

Community Services Block Grant Act (42 U.S.C.

10 11

9902(2)), including any revision required by such section.

12

(3) R ECESSION ADJUSTMENT PERIOD .—The term

13 14 15

‘‘recession adjustment period’’ means the period be ginning on October 1, 2008, and ending on December 31, 2010. (4) S

ECRETARY.—The

term ‘‘Secretary’’ means

the Secretary of Health and Human Services. (5) S

TATE .—The

term ‘‘State’’ has the meaning

given such term for purposes of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.). (i) S UNSET .—This section shall not apply to items and services furnished after the end of the recession adjustment period. SEC. 5002. EXTENSION AND UPDATE OF SPECIAL RULE FOR INCREASE OF MEDICAID DSH ALLOTMENTS

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2

1

FOR LOW DSH STATES.

2 3 4

Section 1923(f)(5) of the Social Security Act (42 U.S.C. 1396r–4(f)(5)) is amended—

5

(1) in subparagraph (B)—

6

(A) in the subparagraph heading, by striking

7

‘‘ YEAR 2004 AND SUBSEQUENT FISCAL YEARS ’’ and

8

inserting ‘‘

9

YEARS 2004 THROUGH 2008 ’’;

(B) in clause (i), by inserting ‘‘and’’ after

10 11

the semicolon;

12

(C) in clause (ii), by striking ‘‘; and’’ and

13

inserting a period; and

14

(D) by striking clause (iii); and (2) by adding at the end the following subpara-

15

graph: ‘‘(C) F OR FISCAL YEAR 2009 AND SUBSEQUENT FISCAL YEARS .—In

the case of a State in which the

total expenditures under the State plan (including Federal and State shares) for disproportionate share hospital adjustments under this section for fiscal year 2006, as reported to the Administrator of the Centers for Medicare & Medicaid Services as of August 31, 2009, is greater than 0 but less than 3 percent of

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2

1 2

the State’s total amount of expenditures under

3

the State plan for medical assistance during the

4

fiscal year, the DSH allotment for the State with

5

respect to— 6

‘‘(i) fiscal year 2009, shall be the DSH

7 8

allotment for the State for fiscal year 2008

9

increased by 16 percent;

10

‘‘(ii) fiscal year 2010, shall be the

11

DSH allotment for the State for fiscal year

12

2009 increased by 16 percent;

13

‘‘(iii) fiscal year 2011 for the period

14

ending on December 31, 2010, shall be 1' 4

15

of the DSH allotment for the State for fiscal year 2010 increased by 16 percent; ‘‘(iv) fiscal year 2011 for the period beginning on January 1, 2011, and ending on September 30, 2011, shall be 3' 4 of the DSH allotment that would have been determined under this subsection for the State for fiscal year 2011 if this subparagraph had not been enacted; ‘‘(v) fiscal year 2012, shall be the DSH allotment that would have been determined HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under this subsection for the State for fiscal

3

year 2012 if this subparagraph had not

4

been enacted; and

5

‘‘(vi) fiscal year 2013 and any subse6

quent fiscal year, shall be the DSH allotment

7 8

for the State for the previous fiscal year

9

subject to an increase for inflation as

10 11

provided in paragraph (3)(A).’’. SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES

12 AS A RESULT OF THE SPECIAL DISABILITY

13 WORKLOAD PROJECT.

14 15

(a) IN G ENERAL.—The Secretary, in consultation with the Commissioner, shall work with each State to reach an agreement, not later than 3 months after the date of enactment of this Act, on the amount of a payment for the State related to the Medicare program liability as a result of the Special Disability Workload project, subject to the requirements of subsection (c). (b) PAYMENTS .— (1) D

EADLINE FOR MAKING PAYMENTS .—Not

later

than 30 days after reaching an agreement with a State under subsection (a), the Secretary shall pay the State, from the amounts appropriated under HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

paragraph (2), the payment agreed to for the State.

3 4

(2) A

PPROPRIATION .—Out

of any money in the

Treasury not otherwise appropriated, there is appro-

5

priated $3,000,000,000 for fiscal year 2009 for mak6 7

ing payments to States under paragraph (1). (3) L IMITATIONS .—In no case may—

8

(A) the aggregate amount of payments made

9 10

by the Secretary to States under paragraph (1)

11

exceed $3,000,000,000; or

12

(B) any payments be provided by the Sec13

retary under this section after the first day of the

14

first month that begins 4 months after the date of

15

enactment of this Act. (c) R

EQUIREMENTS .—The

requirements of this sub-

section are the following: (1) F EDERAL DATA USED TO DETERMINE AMOUNT OF PAYMENTS .—The

amount of the payment under

subsection (a) for each State is determined on the basis of the most recent Federal data available, including the use of proxies and reasonable estimates as necessary, for determining expeditiously the amount of the payment that shall be made to each State that enters into an agreement under this section. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

The payment methodology shall consider the following

3

factors:

4

(A) The number of SDW cases found to have

5

been eligible for benefits under the Medicare 6

program and the month of the initial Medicare

7

program eligibility for such cases.

8 9

(B) The applicable non-Federal share of ex-

10

penditures made by a State under the Medicaid

11

program during the time period for SDW cases.

12

(C) Such other factors as the Secretary and

13

the Commissioner, in consultation with the

14

States, determine appropriate.

15

(2) C

ONDITIONS FOR PAYMENTS .—A

State shall not

receive a payment under this section unless the State— (A) waives the right to file a civil action (or to be a party to any action) in any Federal or State court in which the relief sought includes a payment from the United States to the State related to the Medicare liability under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as a result of the Special Disability Workload project; and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(B) releases the United States from any fur-

2 3

ther claims for reimbursement of State expendi-

4

tures as a result of the Special Disability Work-

5

load project. 6

(3) N

7

O INDIVIDUAL STATE CLAIMS DATA RE -

8

QUIRED .—No

9

vidual claims evidencing payment under the Medicaid

10 11

State shall be required to submit indi-

program as a condition for receiving a payment under this section.

12

(4) I NELIGIBLE STATES .—No State that is a party

13 14 15

to a civil action in any Federal or State court in which the relief sought includes a payment from the United States to the State related to the Medicare liability under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as a result of the Special Disability Workload project shall be eligible to receive a payment under this section while such an action is pending or if such an action is resolved in favor of the State. (d) D EFINITIONS .—In this section: (1) C

OMMISSIONER .—The

term ‘‘Commissioner’’

means the Commissioner of Social Security.

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(2) M

2 3 4

EDICAID PROGRAM .—The

term ‘‘Medicaid

program’’ means the program of medical assistance established under title XIX of the Social Security Act

5

(42 U.S.C. 1396a et seq.) and includes medical assist6 7

ance provided under any waiver of that program ap-

8

proved under section 1115 or 1915 of such Act (42

9

U.S.C. 1315, 1396n) or otherwise.

10 11

(3) M

EDICARE PROGRAM .—The

term ‘‘Medicare

program’’ means the program established under title

12 13 14

XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). (4) S

15

ECRETARY.—The

term ‘‘Secretary’’ means

the Secretary of Health and Human Services. (5) SDW

CASE .—The

term ‘‘SDW case’’ means a

case in the Special Disability Workload project involving an individual determined by the Commissioner to have been eligible for benefits under title II of the Social Security Act (42 U.S.C. 401 et seq.) for a period during which such benefits were not provided to the individual and who was, during all or part of such period, enrolled in a State Medicaid program. (6) S

PECIAL DISABILITY WORKLOAD PROJECT .—

The

term ‘‘Special Disability Workload project’’ means HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

the project described in the 2008 Annual Report of the

3

Board of Trustees of the Federal Old-Age and

4

Survivors Insurance and Federal Disability Insurance

5

Trust Funds, H.R. Doc. No. 110–104, 110th Cong. 6 7

(2008). (7) S TATE.—The term ‘‘State’’ means each of the

8 9 10

50 States and the District of Columbia. SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH

11

AND HUMAN SERVICES OFFICE OF THE IN

12

SPECTOR GENERAL.

13

For purposes of ensuring the proper expenditure of 14 15

Federal funds under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.), there is appropriated to the Office of the Inspector General of the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated and without further appropriation, $31,250,000 for the recession adjustment period (as defined in section 5001(h)(3)). Amounts appropriated under this section shall remain available for expenditure until September 30, 2012, and shall be in addition to any other amounts appropriated or made available to such Office for such purposes. SEC. 5005. GAO STUDY AND REPORT REGARDING STATE

HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

NEEDS DURING PERIODS OF NATIONAL ECO

2

NOMIC DOWNTURN.

3 4 5 6

(a) I N G ENERAL.—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

7 8 9

well as previous periods of national economic downturn since 1974, for the purpose of developing

10

recommendations for addressing the needs of States

11

during such periods. As part of such analysis, the

12

Comptroller General shall study the past and projected

13

effects of temporary increases in the Federal medical 14 15

assistance percentage under the Medicaid program with respect to such periods. (b) R EPORT .—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 HR 1 PP

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2

1 2

‘‘countercyclical FMAP’’) described in GAO report

3

number GAO–07–97 to improve the effectiveness of

4

the application of such percentage in addressing the

5

needs of States during periods of national economic 6 7

downturn, including recommendations for— (A) improvements to the factors that would

8 9

begin and end the application of such percentage;

10 11

(B) how the determination of the amount of

12

such percentage could be adjusted to address

13

State and regional economic variations during

14

such periods; and

15

(C) how the determination of the amount of such percentage could be adjusted to be more responsive to actual Medicaid costs incurred by States during such periods. (2) An analysis of the impact on States during such periods of— (A) declines in private health benefits coverage; (B) declines in State revenues; and (C) caseload maintenance and growth under Medicaid, the State Children’s Health Insurance HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 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.

1 TITLE

VI—EXECUTIVE

2 COMPENSATION 3S UBTITLE A—O VERSIGHT TITLE VI—EXECUTIVE COMPENSATION OVERSIGHT Sec. 6001. Definitions. Sec. 6002. Executive compensation and corporate governance. Sec. 6003. Board Compensation Committee. Sec. 6004. Limitation on luxury expenditures. Sec. 6005. Shareholder approval of executive compensation. Sec. 6006. Review of prior payments to executives.

4

SEC. 6001. DEFINITIONS.

5For purposes of this title, the following definitions 6 shall apply: 7(1) S

ENIOR EXECUTIVE OFFICER .—The

term

8‘‘senior executive officer’’ means an individual who is 91 of the top 5 most highly paid executives of a public 10company, whose compensation is required to be dis 11closed pursuant to the Securities Exchange Act of HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

121934, and any regulations issued thereunder, and

2 3

13

non-public company counterparts.

4

14(2) G

5

OLDEN PARACHUTE PAYMENT .—The

term

15‘‘golden parachute payment’’ means any payment to

6

16a senior executive officer for departure from a com

7

17pany for any reason, except for payments for services

8

18

performed or benefits accrued.

9

19(3) TARP.—The term ‘‘TARP’’ means the Trou

10 11 12 13

20bled Asset Relief Program established under the Emergency Economic Stabilization Act of 2008 (Public Law 110–343, 12 U.S.C. 5201 et seq.). (4) TARP RECIPIENT .—The term ‘‘TARP recipi-

14

ent’’ means any entity that has received or will receive

15

financial assistance under the financial assistance provided under the TARP. (5) S

ECRETARY.—The

term ‘‘Secretary’’ means

the Secretary of the Treasury. (6) C

OMMISSION .—The

term ‘‘Commission’’

means the Securities and Exchange Commission. SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

(a) I N G ENERAL.—During the period in which any obligation arising from financial assistance provided under the TARP remains outstanding, each TARP recipient shall be subject to— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(1) the standards established by the

2 3

Secretary under this title; and

4

(2) the provisions of section 162(m)(5) of the In-

5

ternal Revenue Code of 1986, as applicable. 6 7

(b) S

TANDARDS

R EQUIRED .—The Secretary shall re-

8

quire each TARP recipient to meet appropriate standards

9

for executive compensation and corporate governance.

10 11

(c) S

PECIFIC

R EQUIREMENTS .—The standards estab-

lished under subsection (b) shall include—

12

(1) limits on compensation that exclude incentives

13 14 15

for senior executive officers of the TARP recipient to take unnecessary and excessive risks that threaten the value of such recipient during the period that any obligation arising from TARP assistance is outstanding; (2) a provision for the recovery by such TARP recipient of any bonus, retention award, or incentive compensation paid to a senior executive officer and any of the next 20 most highly-compensated employees of the TARP recipient based on statements of earnings, revenues, gains, or other criteria that are later found to be materially inaccurate; (3) a prohibition on such TARP recipient making HR 1 PP

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2

1 2

any golden parachute payment to a senior executive

3

officer or any of the next 5 most highly-compensated

4

employees of the TARP recipient during the period

5

that any obligation arising from TARP assistance is 6 7

outstanding;

8

(4) a prohibition on such TARP recipient paying

9

or accruing any bonus, retention award, or incentive

10

compensation during the period that the obligation is

11

outstanding to at least the 25 most highly-

12 13

compensated employees, or such higher number as the

14

Secretary may determine is in the public

15

interest with respect to any TARP recipient; (5) a prohibition on any compensation plan that would encourage manipulation of the reported earnings of such TARP recipient to enhance the compensation of any of its employees; and (6) a requirement for the establishment of a Board Compensation Committee that meets the requirements of section 6003. (d) C ERTIFICATION OF C OMPLIANCE.—The chief executive officer and chief financial officer (or the equivalents thereof) of each TARP recipient shall provide a written cerHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

tification of compliance by the TARP recipient with the

3

requirements of this title—

4

(1) in the case of a TARP recipient, the securities

5

of which are publicly traded, to the Securities and 6 7 8

Exchange Commission, together with annual filings required under the securities laws; and

9 10 11 12

(2) in the case of a TARP recipient that is not a publicly traded company, to the Secretary. SEC. 6003. BOARD COMPENSATION COMMITTEE.

(a) E

STABLISHMENT OF B OARD

R EQUIRED .—Each TARP

13 14 15

recipient shall establish a Board Compensation Committee, comprised entirely of independent directors, for the purpose of reviewing employee compensation plans. (b) M

EETINGS .—The

Board Compensation Committee

of each TARP recipient shall meet at least semiannually to discuss and evaluate employee compensation plans in light of an assessment of any risk posed to the TARP recipient from such plans. SEC. 6004. LIMITATION ON LUXURY EXPENDITURES.

(a) POLICY R EQUIRED .—The board of directors of any TARP recipient shall have in place a company-wide policy regarding excessive or luxury expenditures, as identified by HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

the Secretary, which may include excessive expenditures

3

on—

4

(1) entertainment or events;

5

(2) office and facility renovations;

6

(3) aviation or other transportation services; or

7 8

(4) other activities or events that are not reasonable

9

expenditures for conferences, staff development,

10 11 12

reasonable performance incentives, or other similar measures conducted in the normal course of the business operations of the TARP recipient.

13 SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COM

14 PENSATION.

15

(a) A NNUAL S HAREHOLDER A PPROVAL OF E XECUTIVE C OMPENSATION .—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). HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2 3 4

(b) N ONBINDING VOTE.—A shareholder vote described in subsection (a) shall not be binding on the board of directors of a TARP recipient, and may not be construed as

5

overruling a decision by such board, nor to create or imply 6 7

any additional fiduciary duty by such board, nor shall

8

such vote be construed to restrict or limit the ability of

9

shareholders to make proposals for inclusion in proxy

10 11

materials related to executive compensation. (c) D

EADLINE FOR

R ULEMAKING .—Not later than 1

12 13 14 15

year after the date of enactment of this Act, the Commission shall issue any final rules and regulations required by this section. SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES.

(a) IN G ENERAL.—The Secretary shall review bonuses, retention awards, and other compensation paid to employees of each entity receiving TARP assistance before the date of enactment of this Act to determine whether any such payments were excessive, inconsistent with the purposes of this Act or the TARP, or otherwise contrary to the public interest. (b) N EGOTIATIONS FOR R EIMBURSEMENT .—If the Secretary makes a determination described in subsection (a), the Secretary shall seek to negotiate with the TARP recipiHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

1

2

2

ent and the subject employee for appropriate reimburse-

3

ments to the Federal Government with respect to

4

compensation or bonuses.

5 6

Subtitle B—Limits on Executive Compensation

7 8 9 10 11 12

SEC. 6011. SHORT TITLE.

This subtitle may be cited as the ‘‘Cap Executive Officer Pay Act of 2009’’. SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION.

(a) I N G ENERAL.—Notwithstanding any other provi-

13 14 15

sion of law or agreement to the contrary, no person who is an officer, director, executive, or other employee of a financial institution or other entity that receives or has received funds under the Troubled Asset Relief Program (or ‘‘TARP’’), established under section 101 of the Emergency Economic Stabilization Act of 2008, may receive annual compensation in excess of the amount of compensation paid to the President of the United States. (b) D URATION .—The limitation in subsection (a) shall be a condition of the receipt of assistance under the TARP, and of any modification to such assistance that was received on or before the date of enactment of this Act, and shall remain in effect with respect to each financial instituHR 1 PP

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1

2

2

tion or other entity that receives such assistance or modi-

3

fication for the duration of the assistance or obligation

4 5

provided under the TARP. SEC. 6013. RULEMAKING AUTHORITY.

6 7 8 9

The Secretary shall expeditiously issue such rules as are necessary to carry out this subtitle, including with respect to reimbursement of compensation amounts, as

10

appropriate.

11

SEC. 6014. COMPENSATION.

12

As used in this subtitle, the term ‘‘compensation’’ in-

13

cludes wages, salary, deferred compensation, retirement 14 15

contributions, options, bonuses, property, and any other form of compensation or bonus that the Secretary of the Treasury determines is appropriate.

Subtitle C—Excessive Bonuses SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP RECIPIENTS.

(a) IN G ENERAL.—If, before the date of enactment of this Act, the preferred stock of a financial institution was purchased by the Government using funds provided under the Troubled Asset Relief Program established pursuant to the Emergency Economic Stabilization Act of 2008, then, notwithstanding any otherwise applicable restriction on the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

redeemability of such preferred stock, such financial

3

institution shall redeem an amount of such preferred stock

4

equal to the aggregate amount of all excessive bonuses

5

paid or payable to all covered individuals. 6 7

(b) T

IMING .—Each

financial institution described in

8

subsection (a) shall comply with the requirements of sub-

9

section (a)—

10 11

(1) not later than 120 days after the date of enactment of this Act, with respect to excessive bonuses

12 13 14

(or portions thereof) paid before the date of enactment of this Act; and (2) not later than the day before an excessive

15

bonus (or portion thereof) is paid, with respect to any excessive bonus (or portion thereof) paid on or after the date of enactment of this Act. (c) D

EFINITIONS .—As

used in this section, the

following definitions shall apply: (1) EXCESSIVE BONUS .— (A) I N GENERAL.—The term ‘‘excessive bonus’’ means the portion of the applicable bonus payments made to a covered individual in excess of $100,000. (B) A PPLICABLE BONUS PAYMENTS .— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(i) I N GENERAL.—The term ‘‘applicable

3

bonus payment’’ means any bonus payment

4

to a covered individual—

5

(I) which is paid or payable by 6

reason of services performed by such

7 8

individual in a taxable year of the fi-

9

nancial institution (or any member of a

10

controlled group described in sub-

11

paragraph (D)) ending in 2008, and

12

(II) the amount of which was first

13

communicated to such individual during

14

the period beginning on January 1,

15

2008, and ending January 31, 2009, or was based on a resolution of the board of directors of such institution that was adopted before the end of such taxable year. (ii) C

ERTAIN PAYMENTS AND CONDITIONS

DISREGARDED .—In

determining whether a

bonus payment is described in clause (i)(I)— (I) a bonus payment that relates to services performed in any taxable year HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

before the taxable year described in

3

such clause and that is wholly or

4

partially contingent on the performance

5

of services in the taxable year so 6

described shall be disregarded, and

7 8

(II) any condition on a bonus

9

payment for services performed in the

10

taxable year so described that the em-

11

ployee perform services in taxable

12

years after the taxable year so de-

13

scribed shall be disregarded.

14

(C) B

15

ONUS PAYMENT .—The

term ‘‘bonus

payment’’ means any payment which— (i) is a discretionary payment to a covered individual by a financial institution (or any member of a controlled group described in subparagraph (D)) for services rendered, (ii) is in addition to any amount payable to such individual for services performed by such individual at a regular hourly, daily, weekly, monthly, or similar periodic rate, and HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1

(iii) is paid or payable in cash or

2 3

other property other than—

4

(I) stock in such institution

5

or member, or 6

(II) an interest in a troubled asset

7 8

(within the meaning of the Emergency

9

Economic Stabilization Act of 2008)

10

held directly or indirectly by such in-

11

stitution or member.

12

Such term does not include payments to an em-

13

ployee as commissions, welfare and fringe benefits,

14

or expense reimbursements.

15

(D) C OVERED INDIVIDUAL .—The term ‘‘covered individual’’ means, with respect to any financial institution, any director or officer or other employee of such financial institution or of any member of a controlled group of corporations (within the meaning of section 52(a) of the Internal Revenue Code of 1986) that includes such financial institution. (2) F INANCIAL INSTITUTION .—The term ‘‘financial institution’’ has the same meaning as in section 3 of the Emergency Economic Stabilization Act of 2008 HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

(12 U.S.C. 5252).

3

(d) E XCISE T AX ON TARP C OMPANIES T HAT FAIL T O

4

R EDEEM C ERTAIN S ECURITIES FROM U NITED S TATES .—

5

(1) I N GENERAL.—Chapter 46 of the Internal 6 7

Revenue Code of 1986 (relating to excise tax on gold

8

en parachute payments) is amended by adding at the

9

end the following new section:

10

‘‘SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES

11 12

FROM UNITED STATES.

‘‘(a) IMPOSITION OF T AX.—There is hereby imposed a

13 14

tax on any financial institution which— ‘‘(1) is required to redeem an amount of its pre-

15

ferred stock from the United States pursuant to section 1903(a) of the American Recovery and Reinvestment Tax Act of 2009, and ‘‘(2) fails to redeem all or any portion of such amount within the period prescribed for such redemption. ‘‘(b) A

MOUNT OF T AX .—The

amount of the tax imposed

by subsection (a) shall be equal to 35 percent of the amount which the financial institution failed to redeem within the time prescribed under 1903(b) of the American Recovery and Reinvestment Tax Act of 2009. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 ‘‘(c) A DMINISTRATIVE PROVISIONS .— ‘‘(1) I N GENERAL.—For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A for the taxable year in which a deduction is allowed for any excessive bonus with respect to which the redemption described in subsection (a)(1) is required to be made.

1‘‘(2) E

XTENSION OF TIME .—The

due date for

2payment of tax imposed by this section shall in no 3event be earlier than the 150th day following the date 4of the enactment of this section.’’. 5(2) C ONFORMING AMENDMENTS .— 6(A) The heading for chapter 46 of such Code 7are amended to read as follows: ‘‘CHAPTER 46-TAXES ON CERTAIN EXCESSIVE REMUNERATION ‘‘Sec. 4999. Golden parachute payments. ‘‘Sec. 4999A. Failure to redeem certain securities from United States.’’.

8(B) The item relating to chapter 46 in the 9table of chapters for subtitle D of such Code is 10

amended to read as follows: ‘‘Chapter 46. Taxes on excessive remuneration.’’.

11(3) E

FFECTIVE DATE .—The

amendments made

12by this subsection shall apply to failures described in HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

13section 4999A(a)(2) of the Internal Revenue Code of

3

141986 occurring after the date of the enactment of this

4

15

5

Act. 16 TITLE

6

VII—FORECLOSURE

17 PREVENTION

7 TITLE VII—FORECLOSURE PREVENTION

8

Sec. 7001. Mandatory loan modifications.

9 10

18

SEC. 7001. MANDATORY LOAN MODIFICATIONS.

11 12 13

19Section 109(a) of the Emergency Economic Stabiliza 20 tion Act of 2008 (12 U.S.C. 5219) is amended— (1) by striking the last sentence;

14

(2) by striking ‘‘To the extent’’ and inserting the

15

following: ‘‘(1) IN GENERAL.—To the extent’’; and (3) by adding at the end the following: ‘‘(2) L OAN MODIFICATIONS REQUIRED .— ‘‘(A) I N GENERAL.—In addition to actions required under paragraph (1), the Secretary shall, not later than 15 days after the date of enactment of this paragraph, develop and implement a plan to facilitate loan modifications to prevent avoidable mortgage loan foreclosures. ‘‘(B) F UNDING .—Of amounts made available HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

under section 115 and not otherwise obligated,

3

not less than $50,000,000,000, shall be made

4

available to the Secretary for purposes of

5

carrying out the mortgage loan modification 6

plan required to be developed and implemented

7

under this paragraph.

8 9

‘‘(C) C

10

RITERIA .—The

loan modification

plan required by this paragraph may incorporate

11

the use of—

12

‘‘(i) loan guarantees and credit

13

enhancements;

14

‘‘(ii) the reduction of loan principal

15

amounts and interest rates; ‘‘(iii) extension of mortgage loan terms; and ‘‘(iv) any other similar mechanisms or combinations thereof, as determined appropriate by the Secretary. ‘‘(D) D ESIGNATION AUTHORITY.— ‘‘(i) FDIC.—The Secretary may designate the Corporation, on a reimbursable basis, to carry out the loan modification plan developed under this paragraph. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2 ‘‘(ii) C

ONTRACTING AUTHORITY.—If

designated under clause (i), the Corporation may use its contracting authority under section 9 of the Federal Deposit Insurance Act. ‘‘(E) C

ONSULTATION REQUIRED .—In

devel-

oping the loan modification plan under this paragraph, the Secretary shall consult with the Chairperson of the Board of Directors of the Corporation, the Board, and the Secretary of Housing and Urban Development. ‘‘(F) R

EPORTS TO CONGRESS .—The

Secretary

shall provide to the Committee on Bank

1ing, Housing, and Urban Affairs of the Senate 2and the Committee on Financial Services of the 3

House of Representatives— 4‘‘(i) upon development of the plan re 5quired by this paragraph, a report describ

6

ing such plan; and 7‘‘(ii) a monthly report on the number 8and types of loan modifications occurring 9during the reporting period, and the per

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1

10formance of the loan modification plan

2 3

11

4

overall.’’. 12 TITLE

5

VIII—FORECLOSURE

13 MITIGATION

6 TITLE VIII—FORECLOSURE MITIGATION

7

Sec. 8001. Short Title. Sec. 8002. Definitions. Sec. 8003. Payments to eligible servicers authorized. Sec. 8004. Authorization of appropriations. Sec. 8005. Sunset of authority.

8 9 10 11

14

12

SEC. 8001. SHORT TITLE.

15This title may be cited as the ‘‘Help Families Keep

13

16 Their Homes Act of 2009’’. 14 15

17 18

SEC. 8002. DEFINITIONS.

For purposes of this title— 19(1) the term ‘‘securitized mortgages’’ means resi 20dential mortgages that have been pooled by a

21

securitization vehicle; (2) the term ‘‘securitization vehicle’’ means a trust, corporation, partnership, limited liability entity, special purpose entity, or other structure that— (A) is the issuer, or is created by the issuer, of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed by a pool of assets

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1

that includes residential mortgage loans;

2 3

(B) holds all of the mortgage loans which

4

are the basis for any vehicle described in sub-

5

paragraph (A); and 6

(C) has not issued securities that are guar-

7 8

anteed by the Federal National Mortgage Asso-

9

ciation, the Federal Home Loan Mortgage Cor-

10

poration, or the Government National Mortgage

11

Association;

12

(3) the term ‘‘servicer’’ means a

13 14

servicer of securitized mortgages; (4) the term ‘‘eligible servicer’’ means a servicer

15

of pooled and securitized residential mortgages; (5) the term ‘‘eligible mortgage’’ means a residential mortgage, the principal amount of which did not exceed the conforming loan size limit that was in existence at the time of origination for a comparable dwelling, as established by the Federal National Mortgage Association; (6) the term ‘‘Secretary’’ means the Secretary of the Treasury; (7) the term ‘‘effective term of the Act’’ means the period beginning on the effective date of this title HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 2

and ending on December 31, 2011;

3 4

(8) the term ‘‘incentive fee’’ means the monthly payment to eligible servicers, as determined under

5

section 7003; and 6

(9) the term ‘‘prepayment fee’’ means the pay-

7 8

ment to eligible servicers, as determined under section

9

7003(b).

10

SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHOR

11 12

IZED.

(a) A UTHORITY.—The Secretary is authorized to make

13 14 15

payments to eligible servicers, subject to the terms and conditions established under this title. (b) FEES PAID TO E LIGIBLE S ERVICERS .— (1) I

N GENERAL .—An

eligible servicer may collect

reasonable incentive fee payments, as established by the Secretary, not to exceed $2,000 per loan. (2) C

ONSULTATION .—The

fees permitted under

this section shall be subject to standards established by the Secretary, in consultation with the Secretary of Housing and Urban Development and the Chairman of the Board of Directors of the Federal Deposit Insurance Corporation, which standards shall— (A) include an evaluation of whether an eliHR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

2

1 2

gible mortgage is affordable for the remainder of

3

its term; and

4

(B) identify a reasonable fee to be paid to

5

the servicer in the event that an eligible mortgage 6

is prepaid.

7

(3) F ORM OF PAYMENT .—Fees permitted under

8 9 10 11

this section may be paid in a lump sum or on a monthly basis. If paid on a monthly basis, the fee may only be remitted as long as the loan performs.

12 13 14 15

(c) S AFE H ARBOR.—Notwithstanding any other provision of law, and notwithstanding any investment contract between a servicer and a securitization vehicle, a servicer— (1) owes any duty to maximize the net present value of the pooled mortgages in the securitization vehicle to all investors and parties having a direct or indirect interest in such vehicle, and not to any individual party or group of parties; and (2) shall be deemed to act in the best interests of all such investors and parties if the servicer agrees to or implements a modification, workout, or other loss mitigation plan for a residential mortgage or a class of residential mortgages that constitutes a part or all of HR 1 PP

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1 2

the pooled mortgages in such securitization vehicle, if—

3 4

(A) default on the payment of such mortgage

5

has occurred or is reasonably foreseeable; 6

(B) the property securing such mortgage is

7 8

occupied by the mortgagor of such mortgage or

9

the homeowner; and

10

(C) the servicer reasonably and in good

11

faith believes that the anticipated recovery on the

12

principal outstanding obligation of the mortgage

13

under the modification or workout plan exceeds,

14

on a net present value basis, the anticipated re-

15

covery on the principal outstanding obligation of the mortgage through foreclosure; (3) shall not be obligated to repurchase loans from, or otherwise make payments to, the securitization vehicle on account of a modification, workout, or other loss mitigation plan that satisfies the conditions of paragraph (2); and (4) if it acts in a manner consistent with the duties set forth in paragraphs (1) and (2), shall not be liable for entering into a modification or workout plan to any person— HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

(A) based on ownership by that person of a

2 3

residential mortgage loan or any interest in a

4

pool of residential mortgage loans, or in securi-

5

ties that distribute payments out of the principal, 6

interest, and other payments in loans in the pool;

7 8 9

(B) who is obligated pursuant to a derivative

10

instrument to make payments determined in

11

reference to any loan or any interest referred to

12

in subparagraph (A); or

13

(C) that insures any loan or any interest

14

referred to in subparagraph (A) under any pro-

15

vision of law or regulation of the United States or any State or political subdivision thereof. (d) R EPORTING R EQUIREMENTS .— (1) IN GENERAL.—Each servicer shall report regularly, not less frequently than monthly, to the Secretary on the extent and scope of the loss mitigation activities of the mortgage owner. (2) C ONTENT .—Each report required by this subsection shall include— (A) the number and percent of residential mortgage loans receiving loss mitigation that HR 1 PP VerDate Nov 24 2009 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

have become performing loans;

2 3

(B) the number and percent of residential

4

mortgage loans receiving loss mitigation that

5

have proceeded to foreclosure; 6

(C) the total number of foreclosures

7

initiated during the reporting period;

8 9

(D) data on loss mitigation activities, in-

10

cluding the performance of mitigated loans,

11

disagreggated for each form of loss mitigation,

12

which forms may include—

13

(i) a waiver of any late payment

14

charge, penalty interest, or any other fees or

15

charges, or any combination thereof; (ii) the establishment of a repayment plan under which the homeowner resumes regularly scheduled payments and pays additional amounts at scheduled intervals to cure the delinquency; (iii) forbearance under the loan that provides for a temporary reduction in or cessation of monthly payments, followed by a reamortization of the amounts due under the loan, including arrearage, and a new HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

schedule of repayment amounts;

2 3

(iv) waiver, modification, or variation

4

of any material term of the loan, including

5

short-term, long-term, or life-of-loan modi6

fications that change the interest rate, for-

7 8

give or forbear with respect to the payment

9

of principal or interest, or extend the final

10

maturity date of the loan;

11

(v) short refinancing of the loan con-

12

sisting of acceptance of payment from or on

13

behalf of the homeowner of an amount less

14

than the amount alleged to be due and

15

owing under the loan, including principal, interest, and fees, in full satisfaction of the obligation under such loan and as part of a refinance transaction in which the property is intended to remain the principal residence of the homeowner; (vi) acquisition of the property by the owner or servicer by deed in lieu of foreclosure; (vii) short sale of the principal residence that is subject to the lien securing the HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1

loan;

2 3

(viii) assumption of the obligation of

4

the homeowner under the loan by a third

5

party; 6

(ix) cancellation or postponement of a

7 8

foreclosure sale to allow the homeowner ad-

9

ditional time to sell the property; or

10

(x) any other loss mitigation activity

11

not covered; and

12

(E) such other information as the Secretary

13

determines to be relevant.

14

(3) P UBLIC AVAILABILITY OF REPORTS .—After

15

removing information that would compromise the privacy interests of mortgagors, the Secretary shall make public the reports required by this subsection and summary data. SEC. 8004. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary, such sums as may be necessary to carry out this title. SEC. 8005. SUNSET OF AUTHORITY.

The authority of the Secretary to provide assistance under this title shall terminate on December 31, 2011. HR 1 PP VerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01434 Fmt 6652 Sfmt 6201 E:\BILLS\H1.PP H1

2

1 2 3

Passed the House of Representatives January 28, 2009.

4

Attest: LORRAINE C. MILLER,

5 6 7

Clerk. Passed the Senate February 10, 2009. Attest:ERICKSON,NANCY

8

Secretary.

9 10 11 12 13 14 15

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