[111th Congress Public Law 5]
[From the U.S. Government Printing Office]
[[Page 123 STAT. 115]]
Public Law 111-5
111th Congress
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. <<NOTE: Feb. 17,
2009 - [H.R. 1]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: American
Recovery and Reinvestment Act of 2009.>>
SECTION 1. <<NOTE: 26 USC 1 note.>> SHORT TITLE.
This Act may be cited as the ``American Recovery and Reinvestment
Act of 2009''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
DIVISION A--APPROPRIATIONS PROVISIONS
TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED
AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION FUND
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
TITLE XVI--GENERAL PROVISIONS--THIS ACT
DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS
TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
TITLE V--STATE FISCAL RELIEF
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
SEC. 3. <<NOTE: 26 USC 1 note.>> PURPOSES AND PRINCIPLES.
(a) Statement of Purposes.--The purposes of this Act include the
following:
[[Page 123 STAT. 116]]
(1) To preserve and create jobs and promote economic
recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic
efficiency by spurring technological advances in science and
health.
(4) To invest in transportation, environmental protection,
and other infrastructure that will provide long-term economic
benefits.
(5) To stabilize State and local government budgets, in
order to minimize and avoid reductions in essential services and
counterproductive state and local tax increases.
(b) General Principles Concerning Use of Funds.--The President and
the heads of Federal departments and agencies shall manage and expend
the funds made available in this Act so as to achieve the purposes
specified in subsection (a), including commencing expenditures and
activities as quickly as possible consistent with prudent management.
SEC. 4. <<NOTE: 1 USC 1 note.>> REFERENCES.
Except as expressly provided otherwise, any reference to ``this
Act'' contained in any division of this Act shall be treated as
referring only to the provisions of that division.
SEC. 5. EMERGENCY DESIGNATIONS.
(a) In General.--Each amount in this Act is designated as an
emergency requirement and necessary to meet emergency needs pursuant to
section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2)
of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the
budget for fiscal years 2008 and 2009.
(b) Pay-as-You-Go.--All applicable provisions in this Act are
designated as an emergency for purposes of pay-as-you-go principles.
DIVISION A--APPROPRIATIONS PROVISIONS
That the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2009, and for other purposes, namely:
TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
DEPARTMENT OF AGRICULTURE
Agriculture Buildings and Facilities and Rental Payments
For an additional amount for ``Agriculture Buildings and Facilities
and Rental Payments'', $24,000,000, for necessary construction, repair,
and improvement activities.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$22,500,000, to remain available until September 30, 2013, for
[[Page 123 STAT. 117]]
oversight and audit of programs, grants, and activities funded by this
Act and administered by the Department of Agriculture.
Agricultural Research Service
buildings and facilities
For an additional amount for ``Buildings and Facilities'',
$176,000,000, for work on deferred maintenance at Agricultural Research
Service facilities: Provided, That priority in the use of such funds
shall be given to critical deferred maintenance, to projects that can be
completed, and to activities that can commence promptly following
enactment of this Act.
Farm Service Agency
salaries and expenses
For an additional amount for ``Farm Service Agency, Salaries and
Expenses,'' $50,000,000, for the purpose of maintaining and modernizing
the information technology system.
Natural Resources Conservation Service
watershed and flood prevention operations
For an additional amount for ``Watershed and Flood Prevention
Operations'', $290,000,000, of which $145,000,000 is for necessary
expenses to purchase and restore floodplain easements as authorized by
section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
(except that no more than $30,000,000 of the amount provided for the
purchase of floodplain easements may be obligated for projects in any
one State): Provided, That such funds shall be allocated to projects
that can be fully funded and completed with the funds appropriated in
this Act, and to activities that can commence promptly following
enactment of this Act.
watershed rehabilitation program
For an additional amount for ``Watershed Rehabilitation Program'',
$50,000,000: Provided, That such funds shall be allocated to projects
that can be fully funded and completed with the funds appropriated in
this Act, and to activities that can commence promptly following
enactment of this Act.
Rural Housing Service
rural housing insurance fund program account
For an additional amount for gross obligations for the principal
amount of direct and guaranteed loans as authorized by title V of the
Housing Act of 1949, to be available from funds in the rural housing
insurance fund, as follows: $1,000,000,000 for section 502 direct loans;
and $10,472,000,000 for section 502 unsubsidized guaranteed loans.
For an additional amount for the cost of direct and guaranteed
loans, including the cost of modifying loans, as defined in section 502
of the Congressional Budget Act of 1974, as follows: $67,000,000
[[Page 123 STAT. 118]]
for section 502 direct loans; and $133,000,000 for section 502
unsubsidized guaranteed loans.
rural community facilities program account
For an additional amount for the cost of direct loans and grants for
rural community facilities programs as authorized by section 306 and
described in section 381E(d)(1) of the Consolidated Farm and Rural
Development Act, $130,000,000.
Rural Business--cooperative Service
rural business program account
For an additional amount for the cost of guaranteed loans and grants
as authorized by sections 310B(a)(2)(A) and 310B(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932), $150,000,000.
Rural Utilities Service
rural water and waste disposal program account
For an additional amount for the cost of direct loans and grants for
the rural water, waste water, and waste disposal programs authorized by
sections 306 and 310B and described in section 381E(d)(2) of the
Consolidated Farm and Rural Development Act, $1,380,000,000.
distance learning, telemedicine, and broadband program
For an additional amount for the cost of broadband loans and loan
guarantees, as authorized by the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.) and for grants (including for technical assistance),
$2,500,000,000: Provided, That the cost of direct and guaranteed loans
shall be as defined in section 502 of the Congressional Budget Act of
1974: Provided further, <<NOTE: Grants. Loans.>> That, notwithstanding
title VI of the Rural Electrification Act of 1936, this amount is
available for grants, loans and loan guarantees for broadband
infrastructure in any area of the United States: Provided further, That
at least 75 percent of the area to be served by a project receiving
funds from such grants, loans or loan guarantees shall be in a rural
area without sufficient access to high speed broadband service to
facilitate rural economic development, as determined by the Secretary of
Agriculture: Provided further, That priority for awarding such funds
shall be given to project applications for broadband systems that will
deliver end users a choice of more than one service provider: Provided
further, That priority for awarding funds made available under this
paragraph shall be given to projects that provide service to the highest
proportion of rural residents that do not have access to broadband
service: Provided further, That priority shall be given for project
applications from borrowers or former borrowers under title II of the
Rural Electrification Act of 1936 and for project applications that
include such borrowers or former borrowers: Provided further, That
priority for awarding such funds shall be given to project applications
that demonstrate that, if the application is approved, all project
elements will be fully funded: Provided further, That priority for
awarding
[[Page 123 STAT. 119]]
such funds shall be given to project applications for activities that
can be completed if the requested funds are provided: Provided further,
That priority for awarding such funds shall be given to activities that
can commence promptly following approval: Provided further, That no area
of a project funded with amounts made available under this paragraph may
receive funding to provide broadband service under the Broadband
Technology Opportunities Program: Provided
further, <<NOTE: Reports. Deadlines.>> That the Secretary shall submit a
report on planned spending and actual obligations describing the use of
these funds not later than 90 days after the date of enactment of this
Act, and quarterly thereafter until all funds are obligated, to the
Committees on Appropriations of the House of Representatives and the
Senate.
FOOD AND NUTRITION SERVICE CHILD NUTRITION PROGRAMS
For an additional amount for the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), except sections 17 and
21, $100,000,000, to carry out a grant program for National School Lunch
Program equipment assistance: Provided, That such funds shall be
provided to States administering a school lunch program in a manner
proportional with each States' administrative expense
allocation: <<NOTE: Grants.>> Provided further, That the States shall
provide competitive grants to school food authorities based upon the
need for equipment assistance in participating schools with priority
given to school in which not less than 50 percent of the students are
eligible for free or reduced price meals under the Richard B. Russell
National School Lunch Act.
special supplemental nutrition program for women, infants, and children
(wic)
For an additional amount for the special supplemental nutrition
program as authorized by section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall be placed in
reserve to be allocated as the Secretary deems necessary,
notwithstanding section 17(i) of such Act, to support participation
should cost or participation exceed budget estimates, and of which
$100,000,000 shall be for the purposes specified in section
17(h)(10)(B)(ii): Provided, That up to one percent of the funding
provided for the purposes specified in section 17(h)(10)(B)(ii) may be
reserved by the Secretary for Federal administrative activities in
support of those purposes.
commodity assistance program
For an additional amount for the emergency food assistance program
as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance
Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000: Provided, That of the
funds made available, the Secretary may use up to $50,000,000 for costs
associated with the distribution of commodities, of which up to
$25,000,000 shall be made available in fiscal year 2009.
[[Page 123 STAT. 120]]
GENERAL PROVISIONS--THIS TITLE
Sec. 101. Temporary Increase in Benefits Under the Supplemental
Nutrition Assistance Program. (a) <<NOTE: Puerto Rico. American
Samoa.>> Maximum Benefit Increase.--
(1) In general.--Beginning <<NOTE: Effective date.>> the
first month that begins not less than 25 days after the date of
enactment of this Act, the value of benefits determined under
section 8(a) of the Food and Nutrition Act of 2008 and
consolidated block grants for Puerto Rico and American Samoa
determined under section 19(a) of such Act shall be calculated
using 113.6 percent of the June 2008 value of the thrifty food
plan as specified under section 3(o) of such Act.
(2) Termination.--
(A) The authority provided by this subsection shall
terminate after September 30, 2009.
(B) Notwithstanding subparagraph (A), the Secretary
of Agriculture may not reduce the value of the maximum
allotments, minimum allotments or consolidated block
grants for Puerto Rico and American Samoa below the
level in effect for fiscal year 2009 as a result of
paragraph (1).
(b) Requirements for the Secretary.--In carrying out this section,
the Secretary shall--
(1) consider the benefit increases described in subsection
(a) to be a ``mass change'';
(2) require a simple process for States to notify households
of the increase in benefits;
(3) consider section 16(c)(3)(A) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in
the implementation of this section, without regard to the 120-
day limit described in that section;
(4) disregard the additional amount of benefits that a
household receives as a result of this section in determining
the amount of overissuances under section 13 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2022); and
(5) set the tolerance level for excluding small errors for
the purposes of section 16(c) of the Food and Nutrition Act of
2008 (7 U.S.C. 2025(c)) at $50 through September 30, 2009.
(c) Administrative Expenses.--
(1) In general.--For the costs of State administrative
expenses associated with carrying out this section and
administering the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), the Secretary shall make available $145,000,000
in fiscal year 2009 and $150,000,000 in fiscal year 2010, of
which $4,500,000 is for necessary expenses of the Food and
Nutrition Service for management and oversight of the program
and for monitoring the integrity and evaluating the effects of
the payments made under this section.
(2) Timing for fiscal year 2009.--
Not <<NOTE: Deadline.>> later than 60 days after the date of
enactment of this Act, the Secretary shall make available to
States amounts for fiscal year 2009 under paragraph (1).
(3) Allocation of funds.--Except <<NOTE: Grants.>> as
provided for management and oversight, funds described in
paragraph (1) shall
[[Page 123 STAT. 121]]
be made available as grants to State agencies for each fiscal
year as follows:
(A) 75 percent of the amounts available for each
fiscal year shall be allocated to States based on the
share of each State of households that participate in
the supplemental nutrition assistance program as
reported to the Department of Agriculture for the most
recent 12-month period for which data are available,
adjusted by the Secretary (as of the date of enactment)
for participation in disaster programs under section
5(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(h)); and
(B) 25 percent of the amounts available for each
fiscal year shall be allocated to States based on the
increase in the number of households that participate in
the supplemental nutrition assistance program as
reported to the Department of Agriculture over the most
recent 12-month period for which data are available,
adjusted by the Secretary (as of the date of enactment)
for participation in disaster programs under section
5(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(h)).
(d) Food Distribution Program on Indian Reservations.--For the costs
relating to facility improvements and equipment upgrades associated with
the Food Distribution Program on Indian Reservations, as established
under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2013(b)), the Secretary shall make available $5,000,000: Provided, That
administrative cost-sharing requirements are not applicable to funds
provided in accordance with this provision.
(e) <<NOTE: Effective dates.>> Treatment of Jobless Workers.--
(1) Remainder of fiscal year 2009 through fiscal year
2010.--Beginning with the first month that begins not less than
25 days after the date of enactment of this Act and for each
subsequent month through September 30, 2010, eligibility for
supplemental nutrition assistance program benefits shall not be
limited under section 6(o)(2) of the Food and Nutrition Act of
2008 unless an individual does not comply with the requirements
of a program offered by the State agency that meets the
standards of subparagraphs (B) or (C) of that paragraph.
(2) Fiscal year 2011 and thereafter.--Beginning on October
1, 2010, for the purposes of section 6(o) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency shall
disregard any period during which an individual received
benefits under the supplemental nutrition assistance program
prior to October 1, 2010.
(f) Funding.--There are appropriated to the Secretary out of funds
of the Treasury not otherwise appropriated such sums as are necessary to
carry out this section.
Sec. 102. Agricultural Disaster Assistance Transition. (a) Federal
Crop Insurance Act. Section 531(g) of the Federal Crop Insurance Act (7
U.S.C. 1531(g)) is amended by adding at the end the following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm
described in subparagraph (A) of paragraph (4) that
failed to timely pay the appropriate fee described in
that subparagraph shall be eligible for assistance under
this section
[[Page 123 STAT. 122]]
in accordance with subparagraph (B) if the eligible
producers on the farm--
``(i) <<NOTE: Deadline.>> pay the appropriate
fee described in paragraph (4)(A) not later than
90 days after the date of enactment of this
paragraph; and
``(ii)(I) in the case of each insurable
commodity of the eligible producers on the farm,
excluding grazing land, agree to obtain a policy
or plan of insurance under subtitle A (excluding a
crop insurance pilot program under that subtitle)
for the next insurance year for which crop
insurance is available to the eligible producers
on the farm at a level of coverage equal to 70
percent or more of the recorded or appraised
average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage;
and
``(II) in the case of each noninsurable
commodity of the eligible producers on the farm,
agree to file the required paperwork, and pay the
administrative fee by the applicable State filing
deadline, for the noninsured crop assistance
program for the next year for which a policy is
available.
``(B) Amount of assistance.--Eligible producers on a
farm that meet the requirements of subparagraph (A)
shall be eligible to receive assistance under this
section as if the eligible producers on the farm--
``(i) in the case of each insurable commodity
of the eligible producers on the farm, had
obtained a policy or plan of insurance for the
2008 crop year at a level of coverage not to
exceed 70 percent or more of the recorded or
appraised average yield indemnified at 100 percent
of the expected market price, or an equivalent
coverage; and
``(ii) in the case of each noninsurable
commodity of the eligible producers on the farm,
had filed the required paperwork, and paid the
administrative fee by the applicable State filing
deadline, for the noninsured crop assistance
program for the 2008 crop year, except that in
determining the level of coverage, the Secretary
shall use 70 percent of the applicable yield.
``(C) Equitable relief.--Except as provided in
subparagraph (D), eligible producers on a farm that met
the requirements of paragraph (1) before the deadline
described in paragraph (4)(A) and are eligible to
receive, a disaster assistance payment under this
section for a production loss during the 2008 crop year
shall be eligible to receive an amount equal to the
greater of--
``(i) the amount that would have been
calculated under subparagraph (B) if the eligible
producers on the farm had paid the appropriate fee
under that subparagraph; or
``(ii) the amount that would have been
calculated under subparagraph (A) of subsection
(b)(3) if--
``(I) in clause (i) of that
subparagraph, `120 percent' is
substituted for `115 percent'; and
``(II) in clause (ii) of that
subparagraph, `125' is substituted for
`120 percent'.
[[Page 123 STAT. 123]]
``(D) Limitation.--For amounts made available under
this paragraph, the Secretary may make such adjustments
as are necessary to ensure that no producer receives a
payment under this paragraph for an amount in excess of
the assistance received by a similarly situated producer
that had purchased the same or higher level of crop
insurance prior to the date of enactment of this
paragraph.
``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary
considers appropriate to provide equitable treatment for
eligible producers on a farm that suffered production
losses in the 2008 crop year that result in multiyear
production losses, as determined by the Secretary.
``(F) Lack of access.--Notwithstanding any other
provision of this section, the Secretary may provide
assistance under this section to eligible producers on a
farm that--
``(i) suffered a production loss due to a
natural cause during the 2008 crop year; and
``(ii) as determined by the Secretary--
``(I)(aa) except as provided in item
(bb), lack access to a policy or plan of
insurance under subtitle A; or
``(bb) do not qualify for a written
agreement because 1 or more farming
practices, which the Secretary has
determined are good farming practices,
of the eligible producers on the farm
differ significantly from the farming
practices used by producers of the same
crop in other regions of the United
States; and
``(II) are not eligible for the
noninsured crop disaster assistance
program established by section 196 of
the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).''.
(b) Trade Act of 1974.--Section 901(g) of the Trade Act of 1974 (19
U.S.C. 2497(g)) is amended by adding at the end the following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm
described in subparagraph (A) of paragraph (4) that
failed to timely pay the appropriate fee described in
that subparagraph shall be eligible for assistance under
this section in accordance with subparagraph (B) if the
eligible producers on the farm--
``(i) <<NOTE: Deadline.>> pay the appropriate
fee described in paragraph (4)(A) not later than
90 days after the date of enactment of this
paragraph; and
``(ii)(I) in the case of each insurable
commodity of the eligible producers on the farm,
excluding grazing land, agree to obtain a policy
or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) (excluding a
crop insurance pilot program under that Act) for
the next insurance year for which crop insurance
is available to the eligible producers on the farm
at a level of coverage equal to 70 percent or more
of the recorded or appraised average yield
[[Page 123 STAT. 124]]
indemnified at 100 percent of the expected market
price, or an equivalent coverage; and
``(II) in the case of each noninsurable
commodity of the eligible producers on the farm,
agree to file the required paperwork, and pay the
administrative fee by the applicable State filing
deadline, for the noninsured crop assistance
program for the next year for which a policy is
available.
``(B) Amount of assistance.--Eligible producers on a
farm that meet the requirements of subparagraph (A)
shall be eligible to receive assistance under this
section as if the eligible producers on the farm--
``(i) in the case of each insurable commodity
of the eligible producers on the farm, had
obtained a policy or plan of insurance for the
2008 crop year at a level of coverage not to
exceed 70 percent or more of the recorded or
appraised average yield indemnified at 100 percent
of the expected market price, or an equivalent
coverage; and
``(ii) in the case of each noninsurable
commodity of the eligible producers on the farm,
had filed the required paperwork, and paid the
administrative fee by the applicable State filing
deadline, for the noninsured crop assistance
program for the 2008 crop year, except that in
determining the level of coverage, the Secretary
shall use 70 percent of the applicable yield.
``(C) Equitable relief.--Except as provided in
subparagraph (D), eligible producers on a farm that met
the requirements of paragraph (1) before the deadline
described in paragraph (4)(A) and are eligible to
receive, a disaster assistance payment under this
section for a production loss during the 2008 crop year
shall be eligible to receive an amount equal to the
greater of--
``(i) the amount that would have been
calculated under subparagraph (B) if the eligible
producers on the farm had paid the appropriate fee
under that subparagraph; or
``(ii) the amount that would have been
calculated under subparagraph (A) of subsection
(b)(3) if--
``(I) in clause (i) of that
subparagraph, `120 percent' is
substituted for `115 percent'; and
``(II) in clause (ii) of that
subparagraph, `125' is substituted for
`120 percent'.
``(D) Limitation.--For amounts made available under
this paragraph, the Secretary may make such adjustments
as are necessary to ensure that no producer receives a
payment under this paragraph for an amount in excess of
the assistance received by a similarly situated producer
that had purchased the same or higher level of crop
insurance prior to the date of enactment of this
paragraph.
``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary
considers appropriate to provide equitable treatment for
eligible producers on a farm that suffered production
losses in the 2008 crop year that result in multiyear
production losses, as determined by the Secretary.
[[Page 123 STAT. 125]]
``(F) Lack of access.--Notwithstanding any other
provision of this section, the Secretary may provide
assistance under this section to eligible producers on a
farm that--
``(i) suffered a production loss due to a
natural cause during the 2008 crop year; and
``(ii) as determined by the Secretary--
``(I)(aa) except as provided in item
(bb), lack access to a policy or plan of
insurance under subtitle A; or
``(bb) do not qualify for a written
agreement because 1 or more farming
practices, which the Secretary has
determined are good farming practices,
of the eligible producers on the farm
differ significantly from the farming
practices used by producers of the same
crop in other regions of the United
States; and
``(II) are not eligible for the
noninsured crop disaster assistance
program established by section 196 of
the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).''.
(c) Farm Operating Loans.--
(1) In general.--For the principal amount of direct farm
operating loans under section 311 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941), $173,367,000.
(2) Direct farm operating loans.--For the cost of direct
farm operating loans, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of 1974
(2 U.S.C. 661a), $20,440,000.
(d) 2008 Aquaculture Assistance.--
(1) Definitions.--In this subsection:
(A) Eligible aquaculture producer.--The term
``eligible aquaculture producer'' means an aquaculture
producer that during the 2008 calendar year, as
determined by the Secretary--
(i) produced an aquaculture species for which
feed costs represented a substantial percentage of
the input costs of the aquaculture operation; and
(ii) experienced a substantial price increase
of feed costs above the previous 5-year average.
(B) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(2) Grant program.--
(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use not more
than $50,000,000, to remain available until September
30, 2010, to carry out a program of grants to States to
assist eligible aquaculture producers for losses
associated with high feed input costs during the 2008
calendar year.
(B) Notification.--Not <<NOTE: Deadline.>> later
than 60 days after the date of enactment of this Act,
the Secretary shall notify the State department of
agriculture (or similar entity) in each State of the
availability of funds to assist eligible aquaculture
producers, including such terms as determined by the
Secretary to be necessary for the equitable treatment of
eligible aquaculture producers.
(C) Provision of grants.--
[[Page 123 STAT. 126]]
(i) In general.--The Secretary shall make
grants to States under this subsection on a pro
rata basis based on the amount of aquaculture feed
used in each State during the 2007 calendar year,
as determined by the Secretary.
(ii) Timing.--Not <<NOTE: Deadline.>> later
than 120 days after the date of enactment of this
Act, the Secretary shall make grants to States to
provide assistance under this subsection.
(D) Requirements.--
The <<NOTE: Deadlines.>> Secretary shall make grants
under this subsection only to States that demonstrate to
the satisfaction of the Secretary that the State will--
(i) use grant funds to assist eligible
aquaculture producers;
(ii) provide assistance to eligible
aquaculture producers not later than 60 days after
the date on which the State receives grant funds;
and
(iii) <<NOTE: Reports.>> not later than 30
days after the date on which the State provides
assistance to eligible aquaculture producers,
submit to the Secretary a report that describes--
(I) the manner in which the State
provided assistance;
(II) the amounts of assistance
provided per species of aquaculture; and
(III) the process by which the State
determined the levels of assistance to
eligible aquaculture producers.
(3) Reduction in payments.--An eligible aquaculture producer
that receives assistance under this subsection shall not be
eligible to receive any other assistance under the supplemental
agricultural disaster assistance program established under
section 531 of the Federal Crop Insurance Act (7 U.S.C. 1531)
and section 901 of the Trade Act of 1974 (19 U.S.C. 2497) for
any losses in 2008 relating to the same species of aquaculture.
(4) Report to congress.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report that--
(A) describes in detail the manner in which this
subsection has been carried out; and
(B) includes the information reported to the
Secretary under paragraph (2)(D)(iii).
Sec. 103. For fiscal years 2009 and 2010, in the case of each
program established or amended by the Food, Conservation, and Energy Act
of 2008 (Public Law 110-246), other than by title I of such Act, that is
authorized or required to be carried out using funds of the Commodity
Credit Corporation--
(1) such funds shall be available for the purpose of
covering salaries and related administrative expenses, including
technical assistance, associated with the implementation of the
program, without regard to the limitation on the total amount of
allotments and fund transfers contained in section 11 of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714i); and
(2) the use of such funds for such purpose shall not be
considered to be a fund transfer or allotment for purposes
[[Page 123 STAT. 127]]
of applying the limitation on the total amount of allotments and
fund transfers contained in such section.
Sec. 104. In addition to other available funds, of the funds made
available to the Rural Development mission area in this title, not more
than 3 percent of the funds can be used for administrative costs to
carry out loan, loan guarantee and grant activities funded in this
title, which shall be transferred to and merged with the appropriation
for ``Rural Development, Salaries and Expenses'': Provided, That of this
amount $1,750,000 shall be committed to agency projects associated with
maintaining the compliance, safety, and soundness of the portfolio of
loans guaranteed through the section 502 guaranteed loan program.
Sec. 105. Of the amounts appropriated in this title to the ``Rural
Housing Service, Rural Community Facilities Program Account'', the
``Rural Business-Cooperative Service, Rural Business Program Account'',
and the "Rural Utilities Service, Rural Water and Waste Disposal Program
Account'', at least 10 percent shall be allocated for assistance in
persistent poverty <<NOTE: Definition.>> counties: Provided, That for
the purposes of this section, the term ``persistent poverty counties''
means any county that has had 20 percent or more of its population
living in poverty over the past 30 years, as measured by the 1980, 1990,
and 2000 decennial censuses.
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
DEPARTMENT OF COMMERCE
Economic Development Administration
economic development assistance programs
For an additional amount for ``Economic Development Assistance
Programs'', $150,000,000: Provided, That $50,000,000 shall be for
economic adjustment assistance as authorized by section 209 of the
Public Works and Economic Development Act of 1965, as amended (42 U.S.C.
3149): Provided further, That in allocating the funds provided in the
previous proviso, the Secretary of Commerce shall give priority
consideration to areas of the Nation that have experienced sudden and
severe economic dislocation and job loss due to corporate restructuring:
Provided further, That not to exceed 2 percent of the funds provided
under this heading may be transferred to and merged with the
appropriation for ``Salaries and Expenses'' for purposes of program
administration and oversight: Provided further, That up to $50,000,000
of the funds provided under this heading may be transferred to federally
authorized regional economic development commissions.
Bureau of the Census
periodic censuses and programs
For an additional amount for ``Periodic Censuses and Programs'',
$1,000,000,000.
[[Page 123 STAT. 128]]
National Telecommunications and Information Administration
broadband technology opportunities program
For an amount for ``Broadband Technology Opportunities Program'',
$4,700,000,000: <<NOTE: Grants.>> Provided, That of the funds provided
under this heading, not less than $4,350,000,000 shall be expended
pursuant to division B of this Act, of which: not less than $200,000,000
shall be available for competitive grants for expanding public computer
center capacity, including at community colleges and public libraries;
not less than $250,000,000 shall be available for competitive grants for
innovative programs to encourage sustainable adoption of broadband
service; and $10,000,000 shall be transferred to ``Department of
Commerce, Office of Inspector General'' for the purposes of audits and
oversight of funds provided under this heading and such funds shall
remain available until expended: Provided further, That of the funds
provided under this heading, up to $350,000,000 may be expended pursuant
to Public Law 110-385 (47 U.S.C. 1301 note) and for the purposes of
developing and maintaining a broadband inventory map pursuant to
division B of this Act: <<NOTE: Notification. Deadline.>> Provided
further, That of the funds provided under this heading, amounts deemed
necessary and appropriate by the Secretary of Commerce, in consultation
with the Federal Communications Commission (FCC), may be transferred to
the FCC for the purposes of developing a national broadband plan or for
carrying out any other FCC responsibilities pursuant to division B of
this Act, and only if the Committees on Appropriations of the House and
the Senate are notified not less than 15 days in advance of the transfer
of such funds: <<NOTE: Applicability.>> Provided further, That not more
than 3 percent of funds provided under this heading may be used for
administrative costs, and this limitation shall apply to funds which may
be transferred to the FCC.
digital-to-analog converter box program
For an amount for ``Digital-to-Analog Converter Box Program'',
$650,000,000, for additional coupons and related activities under the
program implemented under section 3005 of the Digital Television
Transition and Public Safety Act of 2005: Provided, That of the amounts
provided under this heading, $90,000,000 may be for education and
outreach, including grants to organizations for programs to educate
vulnerable populations, including senior citizens, minority communities,
people with disabilities, low-income individuals, and people living in
rural areas, about the transition and to provide one-on-one assistance
to vulnerable populations, including help with converter box
installation: <<NOTE: Notification. Deadline.>> Provided further, That
the amounts provided in the previous proviso may be transferred to the
Federal Communications Commission (FCC) if deemed necessary and
appropriate by the Secretary of Commerce in consultation with the FCC,
and only if the Committees on Appropriations of the House and the Senate
are notified not less than 5 days in advance of transfer of such funds.
[[Page 123 STAT. 129]]
National Institute of Standards and Technology
scientific and technical research and services
For an additional amount for ``Scientific and Technical Research
and Services'', $220,000,000.
construction of research facilities
For an additional amount for ``Construction of Research
Facilities'', $360,000,000, of which $180,000,000 shall be for a
competitive construction grant program for research science buildings.
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', $230,000,000.
procurement, acquisition and construction
For an additional amount for ``Procurement, Acquisition and
Construction'', $600,000,000.
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$6,000,000, to remain available until September 30, 2013.
DEPARTMENT OF JUSTICE
General Administration
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
State and Local Law Enforcement Activities
Office on Violence Against Women
violence against women prevention and <<NOTE: Grants.>> prosecution
programs
For an additional amount for ``Violence Against Women Prevention and
Prosecution Programs'', $225,000,000 for grants to combat violence
against women, as authorized by part T of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3796gg et seq.): Provided, That,
$50,000,000 shall be for transitional housing assistance grants for
victims of domestic violence, stalking or sexual assault as authorized
by section 40299 of the Violent Crime Control and Law Enforcement Act of
1994 (Public Law 103-322).
[[Page 123 STAT. 130]]
Office of Justice Programs
state and local law enforcement assistance
For an additional amount for ``State and Local Law Enforcement
Assistance'', $2,000,000,000, for the Edward Byrne Memorial Justice
Assistance Grant program as authorized by subpart 1 of part E of title I
of the Omnibus Crime Control and Safe Streets Acts of 1968 (``1968
Act''), (except that section 1001(c), and the special rules for Puerto
Rico under section 505(g), of the 1968 Act, shall not apply for purposes
of this Act).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $225,000,000, for competitive grants to improve the
functioning of the criminal justice system, to assist victims of crime
(other than compensation), and youth mentoring grants.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $40,000,000, for competitive grants to provide assistance
and equipment to local law enforcement along the Southern border and in
High-Intensity Drug Trafficking Areas to combat criminal narcotics
activity stemming from the Southern border, of which $10,000,000 shall
be transferred to ``Bureau of Alcohol, Tobacco, Firearms and Explosives,
Salaries and Expenses'' for the ATF Project Gunrunner.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $225,000,000, for assistance to Indian tribes,
notwithstanding Public Law 108-199, division B, title I, section
112(a)(1) (118 Stat. 62), which shall be available for grants under
section 20109 of subtitle A of title II of the Violent Crime Control and
Law Enforcement Act of 1994 (Public Law 103-322).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $100,000,000, to be distributed by the Office for Victims
of Crime in accordance with section 1402(d)(4) of the Victims of Crime
Act of 1984 (Public Law 98-473).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $125,000,000, for assistance to law enforcement in rural
States and rural areas, to prevent and combat crime, especially drug-
related crime.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $50,000,000, for Internet Crimes Against Children (ICAC)
initiatives.
Community Oriented Policing Services
For an additional amount for ``Community Oriented Policing
Services'', for grants under section 1701 of title I of the 1968 Omnibus
Crime Control and Safe Streets Act (42 U.S.C. 3796dd) for hiring and
rehiring of additional career law enforcement officers under part Q of
such title, notwithstanding subsection (i) of such section,
$1,000,000,000.
Salaries and Expenses
For an additional amount, not elsewhere specified in this title, for
management and administration and oversight of programs within the
Office on Violence Against Women, the Office of Justice Programs, and
the Community Oriented Policing Services Office, $10,000,000.
[[Page 123 STAT. 131]]
SCIENCE
National Aeronautics and Space Administration
science
For an additional amount for ``Science'', $400,000,000.
aeronautics
For an additional amount for ``Aeronautics'', $150,000,000.
exploration
For an additional amount for ``Exploration'', $400,000,000.
cross agency support
For an additional amount for ``Cross Agency Support'', $50,000,000.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
National Science Foundation
research and related activities
For an additional amount for ``Research and Related Activities'',
$2,500,000,000: Provided, That $300,000,000 shall be available solely
for the Major Research Instrumentation program and $200,000,000 shall be
for activities authorized by title II of Public Law 100-570 for academic
research facilities modernization.
education and human resources
For an additional amount for ``Education and Human Resources'',
$100,000,000.
major research equipment and facilities construction
For an additional amount for ``Major Research Equipment and
Facilities Construction'', $400,000,000.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
GENERAL PROVISION--THIS TITLE
Sec. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime Control
and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c)) shall
not apply with respect to funds appropriated in this or any other Act
making appropriations for fiscal year 2009 or 2010 for Community
Oriented Policing Services authorized under part Q of such Act of 1968.
[[Page 123 STAT. 132]]
TITLE III--DEPARTMENT OF DEFENSE
OPERATION AND MAINTENANCE
Operation and Maintenance, Army
For an additional amount for ``Operation and Maintenance, Army'',
$1,474,525,000, to remain available for obligation until September 30,
2010, to improve, repair and modernize Department of Defense facilities,
restore and modernize real property to include barracks, and invest in
the energy efficiency of Department of Defense facilities.
Operation and Maintenance, Navy
For an additional amount for ``Operation and Maintenance, Navy'',
$657,051,000, to remain available for obligation until September 30,
2010, to improve, repair and modernize Department of Defense facilities,
restore and modernize real property to include barracks, and invest in
the energy efficiency of Department of Defense facilities.
Operation and Maintenance, Marine Corps
For an additional amount for ``Operation and Maintenance, Marine
Corps'', $113,865,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air Force
For an additional amount for ``Operation and Maintenance, Air
Force'', $1,095,959,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Army Reserve
For an additional amount for ``Operation and Maintenance, Army
Reserve'', $98,269,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Navy Reserve
For an additional amount for ``Operation and Maintenance, Navy
Reserve'', $55,083,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
[[Page 123 STAT. 133]]
Operation and Maintenance, Marine Corps Reserve
For an additional amount for ``Operation and Maintenance, Marine
Corps Reserve'', $39,909,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air Force Reserve
For an additional amount for ``Operation and Maintenance, Air Force
Reserve'', $13,187,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Army National Guard
For an additional amount for ``Operation and Maintenance, Army
National Guard'', $266,304,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air National Guard
For an additional amount for ``Operation and Maintenance, Air
National Guard'', $25,848,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
Research, Development, Test and Evaluation, Army
For an additional amount for ``Research, Development, Test and
Evaluation, Army'', $75,000,000, to remain available for obligation
until September 30, 2010.
Research, Development, Test and Evaluation, Navy
For an additional amount for ``Research, Development, Test and
Evaluation, Navy'', $75,000,000, to remain available for obligation
until September 30, 2010.
Research, Development, Test and Evaluation, Air Force
For an additional amount for ``Research, Development, Test and
Evaluation, Air Force'', $75,000,000, to remain available for obligation
until September 30, 2010.
[[Page 123 STAT. 134]]
Research, Development, Test and Evaluation, Defense-Wide
For an additional amount for ``Research, Development, Test and
Evaluation, Defense-Wide'', $75,000,000, to remain available for
obligation until September 30, 2010.
OTHER DEPARTMENT OF DEFENSE PROGRAMS
Defense Health Program
For an additional amount for ``Defense Health Program'',
$400,000,000 for operation and maintenance, to remain available for
obligation until September 30, 2010, to improve, repair and modernize
military medical facilities, and invest in the energy efficiency of
military medical facilities.
Office of the Inspector General
For an additional amount for ``Office of the Inspector General'',
$15,000,000 for operation and maintenance, to remain available for
obligation until September 30, 2011.
TITLE IV--ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE--CIVIL
Department of the Army
Corps of Engineers--Civil
investigations
For an additional amount for ``Investigations'', $25,000,000:
Provided, That funds provided under this heading in this title shall
only be used for programs, projects or activities that heretofore or
hereafter receive funds provided in Acts making appropriations available
for Energy and Water Development: Provided further, That funds provided
under this heading in this title shall be used for programs, projects or
activities or elements of programs, projects or activities that can be
completed within the funds made available in that account and that will
not require new budget authority to complete: Provided further, That for
projects that are being completed with funds appropriated in this Act
that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if
any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
of the Army shall submit a quarterly report to the Committees on
Appropriations of the House of Representatives and the Senate detailing
the allocation, obligation and expenditures of these funds, beginning
not later than 45 days after enactment of this Act: Provided further,
That the Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.
construction
For an additional amount for ``Construction'', $2,000,000,000:
Provided, That not less than $200,000,000 of the funds provided
[[Page 123 STAT. 135]]
shall be for water-related environmental infrastructure assistance:
Provided further, That section 102 of Public Law 109-103 (33 U.S.C.
2221) shall not apply to funds provided in this title: Provided further,
That notwithstanding any other provision of law, funds provided in this
paragraph shall not be cost shared with the Inland Waterways Trust Fund
as authorized in Public Law 99-662: Provided further, That funds
provided under this heading in this title shall only be used for
programs, projects or activities that heretofore or hereafter receive
funds provided in Acts making appropriations available for Energy and
Water Development: Provided further, That funds provided under this
heading in this title shall be used for programs, projects or activities
or elements of programs, projects or activities that can be completed
within the funds made available in that account and that will not
require new budget authority to complete: Provided further, That the
limitation concerning total project costs in section 902 of the Water
Resources Development Act of 1986, as amended (33 U.S.C. 2280), shall
not apply during fiscal year 2009 to any project that received funds
provided in this title: Provided further, That funds appropriated under
this heading may be used by the Secretary of the Army, acting through
the Chief of Engineers, to undertake work authorized to be carried out
in accordance with section 14 of the Flood Control Act of 1946 (33
U.S.C. 701r); section 205 of the Flood Control Act of 1948 (33 U.S.C.
701s); section 206 of the Water Resources Development Act of 1996 (33
U.S.C. 2330); or section 1135 of the Water Resources Development Act of
1986 (33 U.S.C. 2309a), notwithstanding the program cost limitations set
forth in those sections: Provided further, That for projects that are
being completed with funds appropriated in this Act that would otherwise
be expired for obligation, expired funds appropriated in this Act may be
used to pay the cost of associated supervision, inspection, overhead,
engineering and design on those projects and on subsequent claims, if
any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
of the Army shall submit a quarterly report to the Committees on
Appropriations of the House of Representatives and the Senate detailing
the allocation, obligation and expenditures of these funds, beginning
not later than 45 days after enactment of this Act: Provided further,
That the Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.
mississippi river and tributaries
For an additional amount for ``Mississippi River and Tributaries'',
$375,000,000: Provided, That funds provided under this heading in this
title shall only be used for programs, projects or activities that
heretofore or hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development: Provided
further, That funds provided under this heading in this title shall be
used for programs, projects or activities or elements of programs,
projects or activities that can be completed within the funds made
available in that account and that will not require new budget authority
to complete: Provided further, That the limitation concerning total
project costs in section 902 of the Water Resources Development Act of
1986, as amended (33 U.S.C. 2280), shall not apply during fiscal year
2009 to any project that received funds provided in this title: Provided
further, That for projects that are being completed with funds
appropriated
[[Page 123 STAT. 136]]
in this Act that would otherwise be expired for obligation, expired
funds appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if
any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
of the Army shall submit a quarterly report to the Committees on
Appropriations of the House of Representatives and the Senate detailing
the allocation, obligation and expenditures of these funds, beginning
not later than 45 days after enactment of this Act: Provided further,
That the Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.
operation and maintenance
For an additional amount for ``Operation and Maintenance'',
$2,075,000,000: Provided, That funds provided under this heading in this
title shall only be used for programs, projects or activities that
heretofore or hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development: Provided
further, That funds provided under this heading in this title shall be
used for programs, projects or activities or elements of programs,
projects or activities that can be completed within the funds made
available in that account and that will not require new budget authority
to complete: Provided further, That section 9006 of Public Law 110-114
shall not apply to funds provided in this title: Provided further, That
for projects that are being completed with funds appropriated in this
Act that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if
any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
of the Army shall submit a quarterly report to the Committees on
Appropriations of the House of Representatives and the Senate detailing
the allocation, obligation and expenditures of these funds, beginning
not later than 45 days after enactment of this Act: Provided further,
That the Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.
regulatory program
For an additional amount for ``Regulatory Program'', $25,000,000.
formerly utilized sites remedial action program
For an additional amount for ``Formerly Utilized Sites Remedial
Action Program'', $100,000,000: Provided, That funds provided under this
heading in this title shall be used for programs, projects or activities
or elements of programs, projects or activities that can be completed
within the funds made available in that account and that will not
require new budget authority to complete: Provided further, That for
projects that are being completed with funds appropriated in this Act
that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if <<NOTE: Deadlines. Reports.>> any:
Provided further, That the Secretary of the Army shall submit a
quarterly report to the Committees on Appropriations
[[Page 123 STAT. 137]]
of the House of Representatives and the Senate detailing the allocation,
obligation and expenditures of these funds, beginning not later than 45
days after enactment of this Act: Provided further, That the Secretary
shall have unlimited reprogramming authority for these funds provided
under this heading.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
water and related resources
For an additional amount for ``Water and Related Resources'',
$1,000,000,000: Provided, That of the amount appropriated under this
heading, not less than $126,000,000 shall be used for water reclamation
and reuse projects authorized under title XVI of Public Law 102-575:
Provided further, That funds provided in this Act shall be used for
elements of projects, programs or activities that can be completed
within these funding amounts and not create budgetary obligations in
future fiscal years: Provided further, That $50,000,000 of the funds
provided under this heading may be transferred to the Department of the
Interior for programs, projects and activities authorized by the Central
Utah Project Completion Act (titles II-V of Public Law 102-575):
Provided further, That $50,000,000 of the funds provided under this
heading may be used for programs, projects, and activities authorized by
the California Bay-Delta Restoration Act (Public Law 108-361): Provided
further, That not less than $60,000,000 of the funds provided under this
heading shall be used for rural water projects and shall be expended
primarily on water intake and treatment facilities of such projects:
Provided further, That not less than $10,000,000 of the funds provided
under this heading shall be used for a bureau-wide inspection of canals
program in urbanized areas: Provided further, That the costs of
extraordinary maintenance and replacement activities carried out with
funds provided in this Act shall be repaid pursuant to existing
authority, except the length of repayment period shall be as determined
by the Commissioner, but in no case shall the repayment period exceed 50
years and the repayment shall include interest, at a rate determined by
the Secretary of the Treasury as of the beginning of the fiscal year in
which the work is commenced, on the basis of average market yields on
outstanding marketable obligations of the United States with the
remaining periods of maturity comparable to the applicable reimbursement
period of the project adjusted to the nearest one-eighth of 1 percent on
the unamortized balance of any portion of the loan: Provided further,
That for projects that are being completed with funds appropriated in
this Act that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if <<NOTE: Deadlines. Reports.>> any:
Provided further, That the Secretary of the Interior shall submit a
quarterly report to the Committees on Appropriations of the House of
Representatives and the Senate detailing the allocation, obligation and
expenditures of these funds, beginning not later than 45 days after
enactment of this Act: Provided further, That the Secretary shall have
unlimited reprogramming authority for these funds provided under this
heading.
[[Page 123 STAT. 138]]
DEPARTMENT OF ENERGY
ENERGY PROGRAMS
Energy Efficiency and Renewable Energy
For an additional amount for ``Energy Efficiency and Renewable
Energy'', $16,800,000,000: Provided, That $3,200,000,000 shall be
available for Energy Efficiency and Conservation Block Grants for
implementation of programs authorized under subtitle E of title V of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.),
of which $2,800,000,000 is available through the formula in subtitle E:
Provided further, That the Secretary may use the most recent and
accurate population data available to satisfy the requirements of
section 543(b) of the Energy Independence and Security Act of 2007:
Provided further, That the remaining $400,000,000 shall be awarded on a
competitive basis: Provided further, That $5,000,000,000 shall be for
the Weatherization Assistance Program under part A of title IV of the
Energy Conservation and Production Act (42 U.S.C. 6861 et seq.):
Provided further, That $3,100,000,000 shall be for the State Energy
Program authorized under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321): <<NOTE: Grants.>> Provided further,
That $2,000,000,000 shall be available for grants for the manufacturing
of advanced batteries and components and the Secretary shall provide
facility funding awards under this section to manufacturers of advanced
battery systems and vehicle batteries that are produced in the United
States, including advanced lithium ion batteries, hybrid electrical
systems, component manufacturers, and software designers: Provided
further, That notwithstanding section 3304 of title 5, United States
Code, and without regard to the provisions of sections 3309 through 3318
of such title 5, the Secretary of Energy, upon a determination that
there is a severe shortage of candidates or a critical hiring need for
particular positions, may from within the funds provided, recruit and
directly appoint highly qualified individuals into the competitive
service: Provided further, That such authority shall not apply to
positions in the Excepted Service or the Senior Executive Service:
Provided further, That any action authorized herein shall be consistent
with the merit principles of section 2301 of such title 5, and the
Department shall comply with the public notice requirements of section
3327 of such title 5.
Electricity Delivery and Energy Reliability
For an additional amount for ``Electricity Delivery and Energy
Reliability,'' $4,500,000,000: Provided, That funds shall be available
for expenses necessary for electricity delivery and energy reliability
activities to modernize the electric grid, to include demand responsive
equipment, enhance security and reliability of the energy
infrastructure, energy storage research, development, demonstration and
deployment, and facilitate recovery from disruptions to the energy
supply, and for implementation of programs authorized under title XIII
of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et
seq.): Provided further, That $100,000,000 shall be available for worker
training activities: Provided further, That notwithstanding section 3304
of title 5, United States Code, and without regard to the provisions of
sections 3309 through 3318
[[Page 123 STAT. 139]]
of such title 5, the Secretary of Energy, upon a determination that
there is a severe shortage of candidates or a critical hiring need for
particular positions, may from within the funds provided, recruit and
directly appoint highly qualified individuals into the competitive
service: Provided further, That such authority shall not apply to
positions in the Excepted Service or the Senior Executive Service:
Provided further, That any action authorized herein shall be consistent
with the merit principles of section 2301 of such title 5, and the
Department shall comply with the public notice requirements of section
3327 of such title 5: Provided further, That for the purpose of
facilitating the development of regional transmission plans, the Office
of Electricity Delivery and Energy Reliability within the Department of
Energy is provided $80,000,000 within the available funds to conduct a
resource assessment and an analysis of future demand and transmission
requirements after consultation with the Federal Energy Regulatory
Commission: Provided further, That the Office of Electricity Delivery
and Energy Reliability in coordination with the Federal Energy
Regulatory Commission will provide technical assistance to the North
American Electric Reliability Corporation, the regional reliability
entities, the States, and other transmission owners and operators for
the formation of interconnection-based transmission plans for the
Eastern and Western Interconnections and ERCOT: Provided further, That
such assistance may include modeling, support to regions and States for
the development of coordinated State electricity policies, programs,
laws, and regulations: Provided further, That $10,000,000 is provided to
implement section 1305 of Public Law 110-140: Provided further, That the
Secretary of Energy may use or transfer amounts provided under this
heading to carry out new authority for transmission improvements, if
such authority is enacted in any subsequent Act, consistent with
existing fiscal management practices and procedures.
Fossil Energy Research and Development
For an additional amount for ``Fossil Energy Research and
Development'', $3,400,000,000.
Non-Defense Environmental Cleanup
For an additional amount for ``Non-Defense Environmental Cleanup'',
$483,000,000.
Uranium Enrichment Decontamination and Decommissioning Fund
For an additional amount for ``Uranium Enrichment Decontamination
and Decommissioning Fund'', $390,000,000, of which $70,000,000 shall be
available in accordance with title X, subtitle A of the Energy Policy
Act of 1992.
Science
For an additional amount for ``Science'', $1,600,000,000.
[[Page 123 STAT. 140]]
Advanced Research Projects Agency--Energy
For the Advanced Research Projects Agency--Energy, $400,000,000, as
authorized under section 5012 of the America COMPETES Act (42 U.S.C.
16538).
Title 17--Innovative Technology Loan Guarantee Program
For an additional amount for the cost of guaranteed loans authorized
by section 1705 of the Energy Policy Act of 2005, $6,000,000,000,
available until expended, to pay the costs of guarantees made under this
section: Provided, That of the amount provided for title XVII,
$25,000,000 shall be used for administrative expenses in carrying out
the guaranteed loan program: Provided further, That of the amounts
provided for title XVII, $10,000,000 shall be transferred to and
available for administrative expenses for the Advanced Technology
Vehicles Manufacturing Loan Program.
Office of the Inspector General
For necessary expenses of the Office of the Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $15,000,000, to remain available until September 30, 2012.
ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES
Defense Environmental Cleanup
For an additional amount for ``Defense Environmental Cleanup,''
$5,127,000,000.
Construction, Rehabilitation, Operation, and Maintenance, Western Area
Power Administration
For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other
related activities including conservation and renewable resources
programs as authorized, $10,000,000, to remain available until expended:
Provided, That the Administrator shall establish such personnel staffing
levels as he deems necessary to economically and efficiently complete
the activities pursued under the authority granted by section 402 of
this Act: Provided further, That this appropriation is non-reimbursable.
GENERAL PROVISIONS--THIS TITLE
Sec. 401. Bonneville Power Administration Borrowing Authority. For
the purposes of providing funds to assist in financing the construction,
acquisition, and replacement of the transmission system of the
Bonneville Power Administration and to implement the authority of the
Administrator of the Bonneville Power Administration under the Pacific
Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et
seq.), an additional $3,250,000,000 in borrowing authority is made
available under the Federal Columbia River Transmission System Act (16
U.S.C. 838 et seq.), to remain outstanding at any time.
[[Page 123 STAT. 141]]
Sec. 402. Western Area Power Administration Borrowing Authority.
The Hoover Power Plant Act of 1984 (Public Law 98-381) is amended by
adding at the end the following:
``TITLE III--BORROWING AUTHORITY
``SEC. 301. <<NOTE: 42 USC 16421a.>> WESTERN AREA POWER ADMINISTRATION
BORROWING AUTHORITY.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Western Area Power Administration.
``(2) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(b) Authority.--
``(1) In general.--Notwithstanding any other provision of
law, subject to paragraphs (2) through (5)--
``(A) the Western Area Power Administration may
borrow funds from the Treasury; and
``(B) the Secretary shall, without further
appropriation and without fiscal year limitation, loan
to the Western Area Power Administration, on such terms
as may be fixed by the Administrator and the Secretary,
such sums (not to exceed, in the aggregate (including
deferred interest), $3,250,000,000 in outstanding
repayable balances at any one time) as, in the judgment
of the Administrator, are from time to time required for
the purpose of--
``(i) constructing, financing, facilitating,
planning, operating, maintaining, or studying
construction of new or upgraded electric power
transmission lines and related facilities with at
least one terminus within the area served by the
Western Area Power Administration; and
``(ii) delivering or facilitating the delivery
of power generated by renewable energy resources
constructed or reasonably expected to be
constructed after the date of enactment of this
section.
``(2) Interest.--The rate of interest to be charged in
connection with any loan made pursuant to this subsection shall
be fixed by the Secretary, taking into consideration market
yields on outstanding marketable obligations of the United
States of comparable maturities as of the date of the loan.
``(3) Refinancing.--The Western Area Power Administration
may refinance loans taken pursuant to this section within the
Treasury.
``(4) Participation.--The Administrator may permit other
entities to participate in the financing, construction and
ownership projects financed under this section.
``(5) Congressional review of <<NOTE: Effective
date.>> 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. <<NOTE: Deadline.>> If
the Administrator seeks to borrow funds above $1,750,000,000,
the funds will be disbursed unless there is enacted, within 90
calendar days of the first such request, a joint resolution that
rescinds the remainder of the balance of the borrowing authority
provided in this section.
``(c) Transmission Line and Related Facility Projects.--
[[Page 123 STAT. 142]]
``(1) In general.--For repayment purposes, each transmission
line and related facility project in which the Western Area
Power Administration participates pursuant to this section shall
be treated as separate and distinct from--
``(A) each other such project; and
``(B) all other Western Area Power Administration
power and transmission facilities.
``(2) Proceeds.--The Western Area Power Administration shall
apply the proceeds from the use of the transmission capacity
from an individual project under this section to the repayment
of the principal and interest of the loan from the Treasury
attributable to that project, after reserving such funds as the
Western Area Power Administration determines are necessary--
``(A) to pay for any ancillary services that are
provided; and
``(B) to meet the costs of operating and maintaining
the new project from which the revenues are derived.
``(3) Source of revenue.--Revenue from the use of projects
under this section shall be the only source of revenue for--
``(A) repayment of the associated loan for the
project; and
``(B) payment of expenses for ancillary services and
operation and maintenance.
``(4) Limitation on authority.--Nothing in this section
confers on the Administrator any additional authority or
obligation to provide ancillary services to users of
transmission facilities developed under this section.
``(5) Treatment of certain revenues.--Revenue from ancillary
services provided by existing Federal power systems to users of
transmission projects funded pursuant to this section shall be
treated as revenue to the existing power system that provided
the ancillary services.
``(d) Certification.--
``(1) In general.--For each project in which the Western
Area Power Administration participates pursuant to this section,
the Administrator shall certify, prior to committing funds for
any such project, that--
``(A) the project is in the public interest;
``(B) the project will not adversely impact system
reliability or operations, or other statutory
obligations; and
``(C) it is reasonable to expect that the proceeds
from the project shall be adequate to make repayment of
the loan.
``(2) Forgiveness of balances.--
``(A) In general.--If, at the end of the useful life
of a project, there is a remaining balance owed to the
Treasury under this section, the balance shall be
forgiven.
``(B) Unconstructed projects.--Funds expended to
study projects that are considered pursuant to this
section but that are not constructed shall be forgiven.
``(C) Notification.--The Administrator shall notify
the Secretary of such amounts as are to be forgiven
under this paragraph.
``(e) Public Processes.--
``(1) Policies and practices.--Prior to requesting any loans
under this section, the Administrator shall use a public
[[Page 123 STAT. 143]]
process to develop practices and policies that implement the
authority granted by this section.
``(2) Requests for interest.--In <<NOTE: Notice. Federal
Register, publication.>> the course of selecting potential
projects to be funded under this section, the Administrator
shall seek Requests For Interest from entities interested in
identifying potential projects through one or more notices
published in the Federal Register.''
Sec. 403. Set-aside for Management and Oversight. Up to 0.5 percent
of each amount appropriated in this title may be used for the expenses
of management and oversight of the programs, grants, and activities
funded by such appropriation, and may be transferred by the head of the
Federal department or agency involved to any other appropriate account
within the department or agency for that
purpose: <<NOTE: Reports. Deadline.>> Provided, That the Secretary will
provide a report to the Committees on Appropriations of the House of
Representatives and the Senate 30 days prior to the transfer: Provided
further, That funds set aside under this section shall remain available
for obligation until September 30, 2012.
Sec. 404. Technical Corrections to the Energy Independence and
Security Act of 2007. (a) Section 543(a) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17153(a)) is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively; and
(2) by striking paragraph (1) and inserting the following:
``(1) 34 percent to eligible units of local government--
alternative 1, in accordance with subsection (b);
``(2) 34 percent to eligible units of local government--
alternative 2, in accordance with subsection (b);''.
(b) Section 543(b) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)''
and inserting ``subsection (a)(1) or (2)''.
(c) Section 548(a)(1) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided'' and
all that follows through ``541(3)(B)''.
Sec. 405. Amendments to Title XIII of the Energy Independence and
Security Act of 2007. Title XIII of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17381 and following) is amended as follows:
(1) By amending subparagraph (A) of <<NOTE: 42 USC
17384.>> section 1304(b)(3) to read as follows:
``(A) In general.--In carrying out the initiative,
the Secretary shall provide financial support to smart
grid demonstration projects in urban, suburban, tribal,
and rural areas, including areas where electric system
assets are controlled by nonprofit entities and areas
where electric system assets are controlled by investor-
owned utilities.''.
(2) By amending subparagraph (C) of section 1304(b)(3) to
read as follows:
``(C) Federal share of cost of technology
investments.--The Secretary shall provide to an electric
utility described in subparagraph (B) or to other
parties financial assistance for use in paying an amount
equal to not more than 50 percent of the cost of
qualifying advanced grid technology investments made by
the electric utility or other party to carry out a
demonstration project.''.
[[Page 123 STAT. 144]]
(3) By inserting after section 1304(b)(3)(D) the following
new subparagraphs:
``(E) Availability of data.--
The <<NOTE: Clearinghouse.>> Secretary shall establish
and maintain a smart grid information clearinghouse in a
timely manner which will make data from smart grid
demonstration projects and other sources available to
the public. As a condition of receiving financial
assistance under this subsection, a utility or other
participant in a smart grid demonstration project shall
provide such information as the Secretary may require to
become available through the smart grid information
clearinghouse in the form and within the timeframes as
directed by the Secretary. The Secretary shall assure
that business proprietary information and individual
customer information is not included in the information
made available through the clearinghouse.
``(F) Open protocols and standards.--The Secretary
shall require as a condition of receiving funding under
this subsection that demonstration projects utilize open
protocols and standards (including Internet-based
protocols and standards) if available and
appropriate.''.
(4) By amending paragraph (2) of <<NOTE: 42 USC
17384.>> section 1304(c) to read as follows:
``(2) to carry out subsection (b), such sums as may be
necessary.''.
(5) By amending subsection (a) of <<NOTE: 42 USC
17386.>> section 1306 by striking ``reimbursement of one-fifth
(20 percent)'' and inserting ``grants of up to one-half (50
percent)''.
(6) By striking the last sentence of subsection (b)(9) of
section 1306.
(7) By striking ``are eligible for'' in subsection (c)(1) of
section 1306 and inserting ``utilize''.
(8) By amending subsection (e) of section 1306 to read as
follows:
``(e) Procedures and <<NOTE: Deadline. Notice.>> Rules.--(1) The
Secretary shall, within 60 days after the enactment of the American
Recovery and Reinvestment Act of 2009, by means of a notice of intent
and subsequent solicitation of grant proposals--
``(A) establish procedures by which applicants can obtain
grants of not more than one-half of their documented costs;
``(B) require as a condition of receiving funding under this
subsection that demonstration projects utilize open protocols
and standards (including Internet-based protocols and standards)
if available and appropriate;
``(C) establish procedures to ensure that there is no
duplication or multiple payment for the same investment or
costs, that the grant goes to the party making the actual
expenditures for the qualifying Smart Grid investments, and that
the grants made have a significant effect in encouraging and
facilitating the development of a smart grid;
``(D) establish procedures to ensure there will be public
records of grants made, recipients, and qualifying Smart Grid
investments which have received grants; and
``(E) establish procedures to provide advance payment of
moneys up to the full amount of the grant award.
``(2) The Secretary shall have discretion and exercise reasonable
judgment to deny grants for investments that do not qualify.''.
[[Page 123 STAT. 145]]
Sec. 406. Renewable Energy and Electric Power Transmission Loan
Guarantee Program. (a) Amendment.--Title XVII of the Energy Policy Act
of 2005 (42 U.S.C. 16511 et seq.) is amended by adding the following at
the end:
``SEC. 1705. <<NOTE: 42 USC 16516.>> TEMPORARY PROGRAM FOR RAPID
DEPLOYMENT OF RENEWABLE ENERGY AND ELECTRIC POWER
TRANSMISSION PROJECTS.
``(a) In General.--Notwithstanding section 1703, the Secretary may
make guarantees under this section only for the following categories of
projects that commence construction not later than September 30, 2011:
``(1) Renewable energy systems, including incremental
hydropower, that generate electricity or thermal energy, and
facilities that manufacture related components.
``(2) Electric power transmission systems, including
upgrading and reconductoring projects.
``(3) Leading edge biofuel projects that will use
technologies performing at the pilot or demonstration scale that
the Secretary determines are likely to become commercial
technologies and will produce transportation fuels that
substantially reduce life-cycle greenhouse gas emissions
compared to other transportation fuels.
``(b) Factors Relating to Electric Power Transmission Systems.--In
determining to make guarantees to projects described in subsection
(a)(2), the Secretary may consider the following factors:
``(1) The viability of the project without guarantees.
``(2) The availability of other Federal and State
incentives.
``(3) The importance of the project in meeting reliability
needs.
``(4) The effect of the project in meeting a State or
region's environment (including climate change) and energy
goals.
``(c) Wage Rate Requirements.--The Secretary shall require that each
recipient of support under this section provide reasonable assurance
that all laborers and mechanics employed in the performance of the
project for which the assistance is provided, including those employed
by contractors or subcontractors, will be paid wages at rates not less
than those prevailing on similar work in the locality as determined by
the Secretary of Labor in accordance with subchapter IV of chapter 31 of
part A of subtitle II of title 40, United States Code (commonly referred
to as the `Davis-Bacon Act').
``(d) Limitation.--Funding under this section for projects described
in subsection (a)(3) shall not exceed $500,000,000.
``(e) Sunset.--The authority to enter into guarantees under this
section shall expire on September 30, 2011.''.
(b) Table of Contents Amendment.--The table of contents for the
Energy Policy Act of 2005 is amended by inserting after the item
relating to section 1704 the following new item:
``Sec. 1705. Temporary program for rapid deployment of renewable energy
and electric power transmission projects.''.
Sec. 407. Weatherization Assistance Program Amendments. (a) Income
Level.--Section 412(7) of the Energy Conservation and Production Act (42
U.S.C. 6862(7)) is amended by striking ``150 percent'' both places it
appears and inserting ``200 percent''.
[[Page 123 STAT. 146]]
(b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) of the
Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended
by striking ``$2,500'' and inserting ``$6,500''.
(c) Effective Use of Funds.--In providing funds made available by
this Act for the Weatherization Assistance Program, the Secretary may
encourage States to give priority to using such funds for the most cost-
effective efficiency activities, which may include insulation of attics,
if, in the Secretary's view, such use of funds would increase the
effectiveness of the program.
(d) Training and Technical Assistance.--Section 416 of the Energy
Conservation and Production Act (42 U.S.C. 6866) is amended by striking
``10 percent'' and inserting ``up to 20 percent''.
(e) Assistance for Previously Weatherized Dwelling Units.--Section
415(c)(2) of the Energy Conservation and Production Act (42 U.S.C.
6865(c)(2)) is amended by striking ``September 30, 1979'' and inserting
``September 30, 1994''.
Sec. 408. Technical Corrections to Public Utility Regulatory
Policies Act of 1978. (a) Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
redesignating paragraph (16) relating to consideration of smart grid
investments (added by section 1307(a) of Public Law 110-140) as
paragraph (18) and by redesignating paragraph (17) relating to smart
grid information (added by section 1308(a) of Public Law 110-140) as
paragraph (19).
(b) Subsections (b) and (d) of section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by
striking ``(17) through (18)'' in each place it appears and inserting
``(16) through (19)''.
Sec. 409. Renewable Electricity Transmission Study. In completing
the 2009 National Electric Transmission Congestion Study, the Secretary
of Energy shall include--
(1) an analysis of the significant potential sources of
renewable energy that are constrained in accessing appropriate
market areas by lack of adequate transmission capacity;
(2) an analysis of the reasons for failure to develop the
adequate transmission capacity;
(3) recommendations for achieving adequate transmission
capacity;
(4) an analysis of the extent to which legal challenges
filed at the State and Federal level are delaying the
construction of transmission necessary to access renewable
energy; and
(5) an explanation of assumptions and projections made in
the Study, including--
(A) assumptions and projections relating to energy
efficiency improvements in each load center;
(B) assumptions and projections regarding the
location and type of projected new generation capacity;
and
(C) assumptions and projections regarding projected
deployment of distributed generation infrastructure.
Sec. 410. Additional State Energy Grants. (a) In General.--Amounts
appropriated under the heading ``Department of Energy--Energy Programs--
Energy Efficiency and Renewable Energy'' in this title shall be
available to the Secretary of Energy for making additional grants under
part D of title III of the Energy Policy and Conservation Act (42 U.S.C.
6321 et seq.). <<NOTE: Notification.>> The Secretary shall make grants
under this section in excess of the base allocation established for a
State under regulations issued pursuant to the
[[Page 123 STAT. 147]]
authorization provided in section 365(f) of such Act only if the
governor of the recipient State notifies the Secretary of Energy in
writing that the governor has obtained necessary assurances that each of
the following will occur:
(1) The applicable State regulatory authority will seek to
implement, in appropriate proceedings for each electric and gas
utility, with respect to which the State regulatory authority
has ratemaking authority, a general policy that ensures that
utility financial incentives are aligned with helping their
customers use energy more efficiently and that provide timely
cost recovery and a timely earnings opportunity for utilities
associated with cost-effective measurable and verifiable
efficiency savings, in a way that sustains or enhances utility
customers' incentives to use energy more efficiently.
(2) The State, or the applicable units of local government
that have authority to adopt building codes, will implement the
following:
(A) A building energy code (or codes) for
residential buildings that meets or exceeds the most
recently published International Energy Conservation
Code, or achieves equivalent or greater energy savings.
(B) A building energy code (or codes) for commercial
buildings throughout the State that meets or exceeds the
ANSI/ASHRAE/IESNA Standard 90.1-2007, or achieves
equivalent or greater energy savings.
(C) <<NOTE: Deadline.>> A plan for the jurisdiction
achieving compliance with the building energy code or
codes described in subparagraphs (A) and (B) within 8
years of the date of enactment of this Act in at least
90 percent of new and renovated residential and
commercial building space. Such plan shall include
active training and enforcement programs and measurement
of the rate of compliance each year.
(3) The State will to the extent practicable prioritize the
grants toward funding energy efficiency and renewable energy
programs, including--
(A) the expansion of existing energy efficiency
programs approved by the State or the appropriate
regulatory authority, including energy efficiency
retrofits of buildings and industrial facilities, that
are funded--
(i) by the State; or
(ii) through rates under the oversight of the
applicable regulatory authority, to the extent
applicable;
(B) the expansion of existing programs, approved by
the State or the appropriate regulatory authority, to
support renewable energy projects and deployment
activities, including programs operated by entities
which have the authority and capability to manage and
distribute grants, loans, performance incentives, and
other forms of financial assistance; and
(C) cooperation and joint activities between States
to advance more efficient and effective use of this
funding to support the priorities described in this
paragraph.
(b) State Match.--The State cost share requirement under the item
relating to ``Department of Energy; Energy Conservation'' in title II of
the Department of the Interior and Related Agencies
[[Page 123 STAT. 148]]
Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not
apply to assistance provided under this section.
(c) Equipment and Materials for Energy Efficiency Measures and
Renewable Energy Measures.--No limitation on the percentage of funding
that may be used for the purchase and installation of equipment and
materials for energy efficiency measures and renewable energy measures
under grants provided under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance
provided under this section.
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
DEPARTMENT OF THE TREASURY
Treasury Inspector General for Tax Administration
SALARIES AND EXPENSES
For an additional amount for necessary expenses of the Treasury
Inspector General for Tax Administration in carrying out the Inspector
General Act of 1978, $7,000,000, to remain available until September 30,
2013, for oversight and audits of the administration of the making work
pay tax credit and economic recovery payments under the American
Recovery and Reinvestment Act of 2009.
Community Development Financial Institutions Fund Program Account
For an additional amount for ``Community Development Financial
Institutions Fund Program Account'', $100,000,000, to remain available
until September 30, 2010, for qualified applicants under the fiscal year
2009 funding round of the Community Development Financial Institutions
Program, of which up to $8,000,000 may be for financial assistance,
technical assistance, training and outreach programs designed to benefit
Native American, Native Hawaiian, and Alaskan Native communities and
provided primarily through qualified community development lender
organizations with experience and expertise in community development
banking and lending in Indian country, Native American organizations,
tribes and tribal organizations and other suitable providers and up to
$2,000,000 may be used for administrative <<NOTE: Waiver.>> expenses:
Provided, That for the purpose of the fiscal year 2009 funding round,
the following statutory provisions are hereby waived: 12 U.S.C. 4707(e)
and 12 U.S.C. 4707(d): Provided further, That no awardee, together with
its subsidiaries and affiliates, may be awarded more than 5 percent of
the aggregate funds available during fiscal year 2009 from the Community
Development Financial Institutions Program:
Provided <<NOTE: Deadline. Expenditure plan.>> further, That no later
than 60 days after the date of enactment of this Act, the Department of
the Treasury shall submit to the Committees on Appropriations of the
House of Representatives and the Senate a detailed expenditure plan for
funds provided under this heading.
[[Page 123 STAT. 149]]
Internal Revenue Service
HEALTH INSURANCE TAX CREDIT ADMINISTRATION
For an additional amount to implement the health insurance tax
credit under the TAA Health Coverage Improvement Act of 2009,
$80,000,000, to remain available until September 30, 2010.
GENERAL SERVICES ADMINISTRATION
Real Property Activities
federal buildings fund
limitations on availability of revenue
(including transfer of funds)
For an additional amount to be deposited in the Federal Buildings
Fund, $5,550,000,000, to carry out the purposes of the Fund, of which
not less than $750,000,000 shall be available for Federal buildings and
United States courthouses, not less than $300,000,000 shall be available
for border stations and land ports of entry, and not less than
$4,500,000,000 shall be available for measures necessary to convert GSA
facilities to High-Performance Green Buildings, as defined in section
401 of Public Law 110-140: Provided, That not to exceed $108,000,000 of
the amounts provided under this heading may be expended for rental of
space, related to leasing of temporary space in connection with projects
funded under this heading: Provided further, That not to exceed
$127,000,000 of the amounts provided under this heading may be expended
for building operations, for the administrative costs of completing
projects funded under this heading: Provided further, That not to exceed
$3,000,000 of the funds provided shall be for on-the-job pre-
apprenticeship and apprenticeship training programs registered with the
Department of Labor, for the construction, repair, and alteration of
Federal buildings: <<NOTE: Deadlines.>> Provided further, That not less
than $5,000,000,000 of the funds provided under this heading shall be
obligated by September 30, 2010, and the remainder of the funds provided
under this heading shall be obligated not later than September 30, 2011:
Provided further, That the Administrator of General Services is
authorized to initiate design, construction, repair, alteration, and
other projects through existing authorities of the
Administrator: <<NOTE: Plans. Deadlines. Notification.>> Provided
further, That the General Services Administration shall submit a
detailed plan, by project, regarding the use of funds made available in
this Act to the Committees on Appropriations of the House of
Representatives and the Senate within 45 days of enactment of this Act,
and shall provide notification to the Committees within 15 days prior to
any changes regarding the use of these
funds: <<NOTE: Reports. Deadlines.>> Provided further, That, hereafter,
the Administrator shall report to the Committees on the obligation of
these funds on a quarterly basis beginning on June 30, 2009: Provided
further, That of the amounts provided, $4,000,000 shall be transferred
to and merged with ``Government-Wide Policy'', for the Office of Federal
High-Performance Green Buildings as authorized in the Energy
Independence and Security Act of 2007 (Public Law 110-
140): <<NOTE: Deadline. Notification.>> Provided further, That amounts
provided under this heading that are savings or cannot be used for the
activity for which originally obligated may
[[Page 123 STAT. 150]]
be deobligated and, notwithstanding any other provision of law,
reobligated for the purposes identified in the plan required under this
heading not less than 15 days after notification has been provided to
the Committees on Appropriations of the House of Representatives and the
Senate.
Energy-Efficient Federal Motor Vehicle Fleet Procurement
For capital expenditures and necessary expenses of acquiring motor
vehicles with higher fuel economy, including: hybrid vehicles; electric
vehicles; and commercially-available, plug-in hybrid vehicles,
$300,000,000, to remain available until September 30,
2011: <<NOTE: Deadline. Expenditure plan.>> Provided, That none of these
funds may be obligated until the Administrator of General Services
submits to the Committees on Appropriations of the House of
Representatives and the Senate, within 90 days after enactment of this
Act, a plan for expenditure of the funds that details the current
inventory of the Federal fleet owned by the General Services
Administration, as well as other Federal agencies, and the strategy to
expend these funds to replace a portion of the Federal fleet with the
goal of substantially increasing energy efficiency over the current
status, including increasing fuel efficiency and reducing
emissions: <<NOTE: Reports. Deadlines.>> Provided further, That,
hereafter, the Administrator shall report to the Committees on the
obligation of these funds on a quarterly basis beginning on September
30, 2009.
Office of Inspector General
For an additional amount for the Office of the Inspector General, to
remain available until September 30, 2013, for oversight and audit of
programs, grants, and projects funded under this title, $7,000,000.
RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD
For necessary expenses of the Recovery Act Accountability and
Transparency Board to carry out the provisions of title XV of this Act,
$84,000,000, to remain available until September 30, 2011.
SMALL BUSINESS ADMINISTRATION
Salaries and Expenses
For an additional amount, to remain available until September 30,
2010, $69,000,000, of which $24,000,000 is for marketing, management,
and technical assistance under section 7(m) of the Small Business Act
(15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the
microloan program, and of which $20,000,000 is for improving,
streamlining, and automating information technology systems related to
lender processes and lender oversight: <<NOTE: Deadline. Expenditure
plan.>> Provided, That no later than 60 days after the date of enactment
of this Act, the Small Business Administration shall submit to the
Committees on Appropriations of the House of Representatives and the
Senate a detailed expenditure plan for funds provided under the heading
``Small Business Administration'' in this Act.
[[Page 123 STAT. 151]]
Office of Inspector General
For an additional amount for the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
$10,000,000, to remain available until September 30, 2013, for oversight
and audit of programs, grants, and projects funded under this title.
Surety Bond Guarantees Revolving Fund
For additional capital for the Surety Bond Guarantees Revolving
Fund, authorized by the Small Business Investment Act of 1958,
$15,000,000, to remain available until expended.
Business Loans Program Account
For an additional amount for the cost of direct loans, $6,000,000,
to remain available until September 30, 2010, and for an additional
amount for the cost of guaranteed loans, $630,000,000, to remain
available until September 30, 2010: Provided, That of the amount for the
cost of guaranteed loans, $375,000,000 shall be for reimbursements, loan
subsidies and loan modifications for loans to small business concerns
authorized in section 501 of this title; and $255,000,000 shall be for
loan subsidies and loan modifications for loans to small business
concerns authorized in section 506 of this title: Provided further, That
such costs, including the cost of modifying such loans, shall be as
defined in section 502 of the Congressional Budget Act of 1974.
Administrative Provisions--Small Business Administration
Sec. 501. Fee Reductions. (a) Administrative Provisions Small
Business Administration.--Until September 30, 2010, and to the extent
that the cost of such elimination or reduction of fees is offset by
appropriations, with respect to each loan guaranteed under section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) and section 502 of this
title, for which the application is approved on or after the date of
enactment of this Act, the Administrator shall--
(1) in lieu of the fee otherwise applicable under section
7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)),
collect no fee or reduce fees to the maximum extent possible;
and
(2) in lieu of the fee otherwise applicable under section
7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)),
collect no fee or reduce fees to the maximum extent possible.
(b) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--Until September 30, 2010, and to the extent
the cost of such elimination in fees is offset by
appropriations, with respect to each project or loan guaranteed
by the Administrator pursuant to title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an
application is approved or pending approval on or after the date
of enactment of this Act--
(A) the Administrator shall, in lieu of the fee
otherwise applicable under section 503(d)(2) of the
Small Business
[[Page 123 STAT. 152]]
Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no
fee;
(B) a development company shall, in lieu of the
processing fee under section 120.971(a)(1) of title 13,
Code of Federal Regulations (relating to fees paid by
borrowers), or any successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of such
payments is offset by appropriations, the Administrator
shall reimburse each development company that does not
collect a processing fee pursuant to paragraph (1)(B).
(B) Amount.--The payment to a development company
under subparagraph (A) shall be in an amount equal to
1.5 percent of the net debenture proceeds for which the
development company does not collect a processing fee
pursuant to paragraph (1)(B).
(c) Application of Fee Eliminations.--
(1) To the extent that amounts are made available to the
Administrator for the purpose of fee eliminations or reductions
under subsection (a), the Administrator shall--
(A) first use any amounts provided to eliminate or
reduce fees paid by small business borrowers under
clauses (i) through (iii) of paragraph (18)(A), to the
maximum extent possible; and
(B) then use any amounts provided to eliminate or
reduce fees under paragraph (23)(A) paid by small
business lenders with assets less than $1,000,000,000 as
of the date of enactment; and
(C) then use any remaining amounts appropriated
under this title to reduce fees paid by small business
lenders other than those with assets less than
$1,000,000,000.
(2) The Administrator shall eliminate fees under subsections
(a) and (b) until the amount provided for such purposes, as
applicable, under the heading ``Business Loans Program Account''
under the heading ``Small Business Administration'' under this
Act are expended.
Sec. 502. Economic Stimulus Lending Program for Small Businesses.
(a) Purpose.--The purpose of this section is to permit the Small
Business Administration to guarantee up to 90 percent of qualifying
small business loans made by eligible lenders.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of
the Small Business Administration.
(2) The term ``qualifying small business loan'' means any
loan to a small business concern pursuant to section 7(a) of the
Small Business Act (15 U.S.C. 636) or title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 and following)
except for such loans made under section 7(a)(31).
(3) The term ``small business concern'' has the same meaning
as provided by section 3 of the Small Business Act (15 U.S.C.
632).
(c) Qualified Borrowers.--
(1) Aliens unlawfully present in the united states.--A loan
guarantee may not be made under this section for a loan made to
a concern if an individual who is an alien unlawfully present in
the United States--
[[Page 123 STAT. 153]]
(A) has an ownership interest in that concern; or
(B) has an ownership interest in another concern
that itself has an ownership interest in that concern.
(2) Firms in violation of immigration laws.--No loan
guarantee may be made under this section for a loan to any
entity found, based on a determination by the Secretary of
Homeland Security or the Attorney General to have engaged in a
pattern or practice of hiring, recruiting or referring for a
fee, for employment in the United States an alien knowing the
person is an unauthorized alien.
(d) Criminal Background Checks.--Prior to the approval of any loan
guarantee under this section, the Administrator may verify the
applicant's criminal background, or lack thereof, through the best
available means, including, if possible, use of the National Crime
Information Center computer system at the Federal Bureau of
Investigation.
(e) Application of Other Law.--Nothing in this section shall be
construed to exempt any activity of the Administrator under this section
from the Federal Credit Reform Act of 1990 (title V of the Congressional
Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
(f) Sunset.--Loan guarantees may not be issued under this section
after the date 12 months after the date of enactment of this Act.
(g) Small Business Act Provisions.--
The <<NOTE: Applicability.>> provisions of the Small Business Act
applicable to loan guarantees under section 7 of that Act and
regulations promulgated thereunder as of the date of enactment of this
Act shall apply to loan guarantees under this section except as
otherwise provided in this section.
(h) Authorization.--There are authorized to be appropriated such
sums as may be necessary to carry out this section.
Sec. 503. Establishment of SBA Secondary Market Guarantee Authority.
(a) Purpose.--The purpose of this section is to provide the
Administrator with the authority to establish the SBA Secondary Market
Guarantee Authority within the SBA to provide a Federal guarantee for
pools of first lien 504 loans that are to be sold to third-party
investors.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of
the Small Business Administration.
(2) The term ``first lien position 504 loan'' means the
first mortgage position, non-federally guaranteed loans made by
private sector lenders made under title V of the Small Business
Investment Act.
(c) Establishment of Authority.--
(1) Organization.--
(A) The Administrator shall establish a Secondary
Market Guarantee Authority within the Small Business
Administration.
(B) The Administrator shall appoint a Director of
the Authority who shall report to the Administrator.
(C) The Administrator is authorized to hire such
personnel as are necessary to operate the Authority and
may contract such operations of the Authority as
necessary to qualified third party companies or
individuals.
[[Page 123 STAT. 154]]
(D) The Administrator is authorized to contract with
private sector fiduciary and custom dial agents as
necessary to operate the Authority.
(2) Guarantee process.--
(A) <<NOTE: Regulations.>> The Administrator shall
establish, by rule, a process in which private sector
entities may apply to the Administration for a Federal
guarantee on pools of first lien position 504 loans that
are to be sold to third-party investors.
(B) The Administrator is authorized to contract with
private sector fiduciary and custom dial agents as
necessary to operate the Authority.
(3) Responsibilities.--
(A) <<NOTE: Regulations.>> The Administrator shall
establish, by rule, a process in which private sector
entities may apply to the SBA for a Federal guarantee on
pools of first lien position 504 loans that are to be
sold to third-party investors.
(B) The rule under this section shall provide for a
process for the Administrator to consider and make
decisions regarding whether to extend a Federal
guarantee referred to in clause (i). Such rule shall
also provide that:
(i) The seller of the pools purchasing a
guarantee under this section retains not less than
5 percent of the dollar amount of the pools to be
sold to third-party investors.
(ii) The Administrator shall charge fees,
upfront or annual, at a specified percentage of
the loan amount that is at such a rate that the
cost of the program under the Federal Credit
Reform Act of 1990 (title V of the Congressional
Budget and Impoundment Control Act of 1974; 2
U.S.C. 661) shall be equal to zero.
(iii) The Administrator may guarantee not more
than $3,000,000,000 of pools under this authority.
(C) The Administrator shall establish documents,
legal covenants, and other required documentation to
protect the interests of the United States.
(D) The Administrator shall establish a process to
receive and disburse funds to entities under the
authority established in this section.
(d) Limitations.--
(1) The Administrator shall ensure that entities purchasing
a guarantee under this section are using such guarantee for the
purpose of selling 504 first lien position pools to third-party
investors.
(2) If the Administrator finds that any such guarantee was
used for a purpose other than that specified in paragraph (1),
the Administrator shall--
(A) prohibit the purchaser of the guarantee or its
affiliates (within the meaning of the regulations under
13 CFR 121.103) from using the authority of this section
in the future; and
(B) take any other actions the Administrator, in
consultation with the Attorney General of the United
States deems appropriate.
(e) Oversight.--The <<NOTE: Reports. Deadlines.>> Administrator
shall submit a report to Congress not later than the third business day
of each month setting forth each of the following:
[[Page 123 STAT. 155]]
(1) The aggregate amount of guarantees extended under this
section during the preceding month.
(2) The aggregate amount of guarantees outstanding.
(3) Defaults and payments on defaults made under this
section.
(4) The identity of each purchaser of a guarantee found by
the Administrator to have misused guarantees under this section.
(5) Any other information the Administrator deems necessary
to fully inform Congress of undue risk to the United States
associated with the issuance of guarantees under this section.
(f) Duration of Program.--The authority of this section shall
terminate on the date 2 years after the date of enactment of this
section.
(g) Funding.--Such sums as necessary are authorized to be
appropriated to carry out the provisions of this section.
(h) Budget Treatment.--Nothing in this section shall be construed to
exempt any activity of the Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of the Congressional Budget
and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
(i) Emergency Rulemaking Authority.--
The <<NOTE: Deadlines.>> Administrator shall issue regulations under
this section within 15 days after the date of enactment of this section.
The notice requirements of section 553(b) of title 5, United States Code
shall not apply to the promulgation of such regulations.
Sec. 504. Stimulus for Community Development Lending. (a) Low
Interest Refinancing Under the Local Development Business Loan
Program.--Section 502 of the Small Business Investment Act of 1958 (15
U.S.C. 696) is amended by adding at the end the following:
``(7) Permissible debt refinancing.--
``(A) In general.--Any financing approved under this
title may include a limited amount of debt refinancing.
``(B) Expansions.--If the project involves expansion
of a small business concern, any amount of existing
indebtedness that does not exceed 50 percent of the
project cost of the expansion may be refinanced and
added to the expansion cost, if--
``(i) the proceeds of the indebtedness were
used to acquire land, including a building
situated thereon, to construct a building thereon,
or to purchase equipment;
``(ii) the existing indebtedness is
collateralized by fixed assets;
``(iii) the existing indebtedness was incurred
for the benefit of the small business concern;
``(iv) the financing under this title will be
used only for refinancing existing indebtedness or
costs relating to the project financed under this
title;
``(v) the financing under this title will
provide a substantial benefit to the borrower when
prepayment penalties, financing fees, and other
financing costs are accounted for;
[[Page 123 STAT. 156]]
``(vi) the borrower has been current on all
payments due on the existing debt for not less
than 1 year preceding the date of refinancing; and
``(vii) the financing under section 504 will
provide better terms or rate of interest than the
existing indebtedness at the time of
refinancing.''.
(b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of
the Small Business Investment Act (15 U.S.C. 695) are each amended by
striking ``$50,000'' and inserting ``$65,000''.
Sec. 505. Increasing Small Business Investment. (a) Simplified
Maximum Leverage Limits.--Section 303(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
(1) By striking so much of paragraph (2) as precedes
subparagraphs (C) and (D) and inserting the following:
``(2) Maximum leverage.--
``(A) In general.--The maximum amount of outstanding
leverage made available to any one company licensed
under section 301(c) of this Act may not exceed the
lesser of--
``(i) 300 percent of such company's private
capital; or
``(ii) $150,000,000.
``(B) Multiple licenses under common control.--The
maximum amount of outstanding leverage made available to
two or more companies licensed under section 301(c) of
this Act that are commonly controlled (as determined by
the Administrator) and not under capital impairment may
not exceed $225,000,000.'';
(2) By amending paragraph (2)(C) by inserting ``(i)'' before
``In calculating'' and adding the following at the end thereof:
``(ii) The maximum amount of outstanding
leverage made available to--
``(I) any 1 company described in
clause (iii) may not exceed the lesser
of 300 percent of private capital of the
company, or $175,000,000; and
``(II) 2 or more companies described
in clause (iii) that are under common
control (as determined by the
Administrator) may not exceed
$250,000,000.
``(iii) A company described in this clause is
a company licensed under section 301(c) in the
first fiscal year after the date of enactment of
this clause or any fiscal year thereafter that
certifies in writing that not less than 50 percent
of the dollar amount of investments of that
company shall be made in companies that are
located in a low-income geographic area (as that
term is defined in section 351).''.
(3) By striking paragraph (4).
(b) Simplified Aggregate Investment Limitations.--Section 306(a) of
the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended
to read as follows:
``(a) Percentage Limitation on Private Capital.--If any small
business investment company has obtained financing from the
Administrator and such financing remains outstanding, the aggregate
amount of securities acquired and for which commitments may be issued by
such company under the provisions of this title
[[Page 123 STAT. 157]]
for any single enterprise shall not, without the approval of the
Administrator, exceed 10 percent of the sum of--
``(1) the private capital of such company; and
``(2) the total amount of leverage projected by the company
in the company's business plan that was approved by the
Administrator at the time of the grant of the company's
license.''.
(c) Investments in Smaller Enterprises.--Section 303(d) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to read as
follows:
``(d) <<NOTE: Certification.>> Investments in Smaller Enterprises.--
The Administrator shall require each licensee, as a condition of
approval of an application for leverage, to certify in writing that not
less than 25 percent of the aggregate dollar amount of financings of
that licensee shall be provided to smaller enterprises.''.
Sec. 506. Business Stabilization Program. (a) In General.--Subject
to the availability of appropriations, the Administrator of the Small
Business Administration shall carry out a program to provide loans on a
deferred basis to viable (as such term is determined pursuant to
regulation by the Administrator of the Small Business Administration)
small business concerns that have a qualifying small business loan and
are experiencing immediate financial hardship.
(b) Eligible Borrower.--A small business concern as defined under
section 3 of the Small Business Act (15 U.S.C. 632).
(c) Qualifying Small Business Loan.--A loan made to a small business
concern that meets the eligibility standards in section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) but shall not include loans
guarantees (or loan guarantee commitments made) by the Administrator
prior to the date of enactment of this Act.
(d) Loan Size.--Loans guaranteed under this section may not exceed
$35,000.
(e) Purpose.--Loans guaranteed under this program shall be used to
make periodic payment of principal and interest, either in full or in
part, on an existing qualifying small business loan for a period of time
not to exceed 6 months.
(f) Loan Terms.--Loans made under this section shall:
(1) carry a 100 percent guaranty; and
(2) have interest fully subsidized for the period of
repayment.
(g) Repayment.--Repayment for loans made under this section shall--
(1) be amortized over a period of time not to exceed 5
years; and
(2) <<NOTE: Effective date.>> not begin until 12 months
after the final disbursement of funds is made.
(h) Collateral.--The Administrator of the Small Business
Administration may accept any available collateral, including
subordinated liens, to secure loans made under this section.
(i) Fees.--The Administrator of the Small Business Administration is
prohibited from charging any processing fees, origination fees,
application fees, points, brokerage fees, bonus points, prepayment
penalties, and other fees that could be charged to a loan applicant for
loans under this section.
(j) Sunset.--The Administrator of the Small Business Administration
shall not issue loan guarantees under this section after September 30,
2010.
[[Page 123 STAT. 158]]
(k) Emergency Rulemaking Authority.--
The <<NOTE: Deadline.>> Administrator of the Small Business
Administration shall issue regulations under this section within 15 days
after the date of enactment of this section. The notice requirements of
section 553(b) of title 5, United States Code shall not apply to the
promulgation of such regulations.
SEC. 507. GAO REPORT.
(a) Report.--Not later than 60 days after the enactment of this Act,
the Comptroller General of the United States shall report to the
Congress on the actions of the Administrator in implementing the
authorities established in the administrative provisions of this title.
(b) Included Item.--The report under this section shall include a
summary of the activity of the Administrator under this title and an
analysis of whether he is accomplishing the purpose of increasing
liquidity in the secondary market for Small Business Administration
loans.
SEC. 508. SURETY BONDS.
(a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by striking ``$2,000,000'' and inserting ``$5,000,000'';
and
(3) by adding at the end the following:
``(B) The Administrator may guarantee a surety under subparagraph
(A) for a total work order or contract amount that does not exceed
$10,000,000, if a contracting officer of a Federal agency certifies that
such a guarantee is necessary.''.
(b) Denial of Liability--
Section 411 of the Small Business Investment Act of 1958 (15
U.S.C. 694b) is amended--
(1) by striking subsection (e) and inserting the following:
``(e) Reimbursement of Surety; Conditions.--
Pursuant to any such guarantee or agreement, the Administration shall
reimburse the surety, as provided in subsection (c) of this section,
except that the Administration shall be relieved of liability (in whole
or in part within the discretion of the Administration) if--
(1) the surety obtained such guarantee or agreement, or
applied for such reinbursement, by fraud or material
misrepresentation,
(2) the total contract amount at the time of execution of
the bond or bonds exceeds $5,000,000,
(3) the surety has breached a material term or condition of
such guarantee agreement, or
(4) the surety has substantially violated the regulations
promulgated by the Administration pursuant to subsection (d).''
(2) by adding at the end the following:
``(k) For bonds made or executed with the prior approval of the
Administration, the Administration shall not deny liability to a surety
based upon material information that was provided as part of the
guaranty application.''.
(c) Size Standards.--Section 410 of the Small Business Investment
Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the
following:
``(9) Notwithstanding any other provision of law or any
rule, regulation, or order of the Administration, for purposes
[[Page 123 STAT. 159]]
of sections 410, 411, and 412 the term `small business concern'
means a business concern that meets the size standard for the
primary industry in which such business concern, and the
affiliates of such business concern, is engaged, as determined
by the Administrator in accordance with the North American
Industry Classification System.''.
(d) Study--The Administrator of the Small Business Administration
shall conduct a study of the current funding structure of the surety
bond program carried out under part B (15 U.S.C. 694a et seq.) of title
IV of the Small Business Investment Act of 1958. The study shall
include--
(1) an assessment of whether the program's current funding
framework and program fees are inhibiting the program's growth;
(2) an assessment of whether surety companies and small
business concerns could benefit from an alternative funding
structure; and
(e) Report--Not later than 180 days after the date of enactment of
this Act, the Administrator shall submit to Congress a report on the
results of the study required under subsection (d).
(f) <<NOTE: 15 USC 694a note.>> Sunset.--The amendments made by this
section shall remain in effect until September 30, 2010.
SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.
(a) Purpose.--The purpose of this section is to provide the Small
Business Administration with the authority to establish a Secondary
Market Lending Authority within the SBA to make loans to the
systemically important SBA secondary market broker-dealers who operate
the SBA secondary market.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of
the SBA.
(2) The term ``SBA'' means the Small Business
Administration.
(3) The terms ``Secondary Market Lending Authority'' and
``Authority'' mean the office establishedunder subsection (c).
(4) The term ``SBA secondary market'' meansthe market for
the purchase and sale of loans originated, underwritten, and
closed under the Small Business Act.
(5) The term ``Systemically Important Secondary Market
Broker-Dealers'' mean those entities designated under subsection
(c)(1) as vital to the continued operation of the SBA secondary
market by reason of their purchase and sale of the government
guaranteed portion of loans, or pools of loans,originated,
underwritten, and closed under the Small Business Act.
(c) Responsibilities, Authorities, Organization, and Limitations.--
(1) Designation of systemically important SBA secondary
market broker-dealers.--The Administrator shall establish a
process to designate, in consultation with the Board of
Governors of the Federal Reserve and the Secretary of the
Treasury, Systemically Important Secondary Market Broker-
Dealers.
(2) Establishment of SBA secondary market lending
authority.--
[[Page 123 STAT. 160]]
(A) Organization.--
(i) The Administrator shall establish within
the SBA an office to provide loans to Systemically
Important Secondary Market Broker-dealers to be
used for the purpose of financing the inventory of
the government guaranteed portion of loans,
originated, underwritten, and closed under the
Small Business Act or pools of such loans.
(ii) The Administrator shall appoint a
Director of the Authority who shall report to the
Administrator.
(iii) The Administrator is authorized to hire
such personnel as are necessary to operate the
Authority.
(iv) The Administrator may contract such
Authority operations as he determines necessary to
qualified third-party companies or individuals.
(v) The Administrator is authorized to
contract with private sector fiduciary and
custodial agents as necessary to operate the
Authority.
(B) Loans.--
(i) <<NOTE: Regulations.>> The Administrator
shall establish by rule a process under which
Systemically Important SBA Secondary Market
Broker-Dealers designated under paragraph (1) may
apply to the Administrator for loans under this
section.
(ii) The rule under clause (i) shall provide a
process for the Administrator to consider and make
decisions regarding whether or not to extend a
loan applied for under this section. Such rule
shall include provisions to assure each of the
following:
(I) That loans made under this
section are for the sole purpose of
financing the inventory of the govern
ment guaranteed portion of loans,
originated, underwritten, and closed
under the Small Business Act or pools of
such loans.
(II) That loans made under this
section are fully collateralized to the
satisfaction of the Administrator.
(III) That there is no limit to the
frequency in which a borrower may borrow
under this section unless the
Administrator determines that doing so
would create an undue risk of loss to
the agency or the United States.
(IV) That there is no limit on the
size of a loan, subject to the
discretion of the Administrator.
(iii) Interest on loans under this section
shall not exceed the Federal Funds target rate as
established by the Federal Reserve Board of
Governors plus 25 basis points.
(iv) The rule under this section shall provide
for such loan documents, legal covenants,
collateral requirements and other required
documentation as necessary to protect the
interests of the agency, the United States, and
the taxpayer.
(v) The Administrator shall establish
custodial accounts to safeguard any collateral
pledged to the SBA in connection with a loan under
this section.
[[Page 123 STAT. 161]]
(vi) The Administrator shall establish a
process to disburse and receive funds to and from
borrowers under this section.
(C) Limitations on use of Loan Proceeds by Systemically Important
Secondary Market Broker-Dealers.--The Administrator shall ensure that
borrowers under this section are using funds provided under this section
only for the purpose specified in subparagraph (B)(ii)(I). If the
Administrator finds that such funds were used for any other purpose, the
Administrator shall--
(i) require immediate repayment of outstanding loans;
(ii) prohibit the borrower, its affiliates, or any future
corporate manifestation of the borrower from using the
Authority; and
(iii) take any other actions the Administrator, in
consultation with the Attorney General of the United States,
deemsappropriate.
(d) Report to Congress.--The Administrator shall submit a report to
Congress not later than the third business day of each month containing
a statement of each of the following:
(1) The aggregate loan amounts extended during the preceding
month under this section.
(2) The aggregate loan amounts repaid under this section
during the proceeding month.
(3) The aggregate loan amount outstanding under this
section.
(4) The aggregate value of assets held as collateral under
this section;
(5) The amount of any defaults or delinquencies on loans
made under this section.
(6) The identity of any borrower found by the Administrator
to misuse funds made available under this section.
(7) Any other information the Administrator deems necessary
to fully inform Congress of undue risk of financial loss to the
United States in connection with loans made under this section.
(e) Duration.--The authority of this section shall remain in effect
for a period of 2 years after the date of enactment of this section.
(f) Fees.--The Administrator shall charge fees, up front, annual, or
both at a specified percentage of the loan amount that is at such a rate
that the cost of the program under the Federal Credit Reform Act of 1990
((title V of the Congressional Budget and Impoundment Control Act of
1974; 2 U.S.C. 661) shall be equal to zero.
(h) Budget treatment.--Nothing in this section shall be construed to
exempt any activity of the Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of the Congressional Budget
and Im poundment Control Act of 1974; 2 U.S.C. 661 and following).
(i) Emergency Rulemaking Authority.--
The <<NOTE: Deadline.>> Administrator shall promulgate regulations under
this section within 30 days after the date of enactment of enactment of
this section. In promulgating these regulations,the Administrator the
notice requirements of section 553(b) of title 5 of the United States
Code shall not apply.
[[Page 123 STAT. 162]]
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
Office of the Under Secretary for Management
For an additional amount for the ``Office of the Under Secretary for
Management'', $200,000,000 for planning, design, construction costs,
site security, information technology infrastructure, fixtures, and
related costs to consolidate the Department of Homeland Security
headquarters: <<NOTE: Deadline. Expenditure plan.>> Provided, That no
later than 60 days after the date of enactment of this Act, the
Secretary of Homeland Security, in consultation with the Administrator
of General Services, shall submit to the Committees on Appropriations of
the Senate and the House of Representatives a plan for the expenditure
of these funds.
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$5,000,000, to remain available until September 30, 2012, for oversight
and audit of programs, grants, and projects funded under this title.
U.S. Customs and Border Protection
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$160,000,000, of which $100,000,000 shall be for the procurement and
deployment of non-intrusive inspection systems; and of which $60,000,000
shall be for procurement and deployment of tactical communications
equipment and radios: <<NOTE: Deadline. Expenditure plan.>> Provided,
That no later than 45 days after the date of enactment of this Act, the
Secretary of Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives a plan for
expenditure of these funds.
border security fencing, infrastructure, and technology
For an additional amount for ``Border Security Fencing,
Infrastructure, and Technology'', $100,000,000 for expedited development
and deployment of border security technology on the Southwest
border: <<NOTE: Deadline. Expenditure plan.>> Provided, That no later
than 45 days after the date of enactment of this Act, the Secretary of
Homeland Security shall submit to the Committees on Appropriations of
the Senate and the House of Representatives a plan for expenditure of
these funds.
construction
For an additional amount for ``Construction'', $420,000,000 solely
for planning, management, design, alteration, and construction of U.S.
Customs and Border Protection owned land border ports of
entry: <<NOTE: Deadline. Expenditure plan.>> 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.
[[Page 123 STAT. 163]]
U.S. Immigration and Customs Enforcement
automation modernization
For an additional amount for ``Automation Modernization'',
$20,000,000 for the procurement and deployment of tactical
communications equipment and radios: <<NOTE: Deadline. Expenditure
plan.>> Provided, That no later than 45 days after the date of enactment
of this Act, the Secretary of Homeland Security shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives a plan for expenditure of these funds.
Transportation Security Administration
aviation security
For an additional amount for ``Aviation Security'', $1,000,000,000
for procurement and installation of checked baggage explosives detection
systems and checkpoint explosives detection equipment: Provided, That
the Assistant Secretary of Homeland Security (Transportation Security
Administration) shall prioritize the award of these funds to accelerate
the installations at locations with completed design
plans: <<NOTE: Deadline. Expenditure plan.>> Provided further, That no
later than 45 days after the date of enactment of this Act, the
Secretary of Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives a plan for
the expenditure of these funds.
Coast Guard
acquisition, construction, and improvements
For an additional amount for ``Acquisition, Construction, and
Improvements'', $98,000,000 for shore facilities and aids to navigation
facilities; for priority procurements due to materials and labor cost
increases; and for costs to repair, renovate, assess, or improve
vessels: <<NOTE: Deadline. Expenditure plan.>> Provided, That no later
than 45 days after the date of enactment of this Act, the Secretary of
Homeland Security shall submit to the Committees on Appropriations of
the Senate and the House of Representatives a plan for the expenditure
of these funds.
alteration of bridges
For an additional amount for ``Alteration of Bridges'',
$142,000,000 for alteration or removal of obstructive bridges, as
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516):
Provided, That the Coast Guard shall award these funds to those bridges
that are ready to proceed to construction: <<NOTE: Deadline. Expenditure
plan.>> 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.
[[Page 123 STAT. 164]]
Federal Emergency Management Agency
state and local programs
For an additional amount for grants, $300,000,000, to be allocated
as follows:
(1) $150,000,000 for Public Transportation Security
Assistance and Railroad Security Assistance under sections 1406
and 1513 of the Implementing Recommendations of the 9/11
Commission Act of 2007 (Public Law 110-53; 6 U.S.C. 1135 and
1163).
(2) $150,000,000 for Port Security Grants in accordance with
46 U.S.C. 70107, notwithstanding 46 U.S.C. 70107(c).
firefighter assistance grants
For an additional amount for competitive grants, $210,000,000 for
modifying, upgrading, or constructing non-Federal fire stations:
Provided, That up to 5 percent shall be for program administration:
Provided further, That no grant shall exceed $15,000,000.
disaster assistance direct loan program account
Notwithstanding section 417(b) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, the amount of any such loan issued
pursuant to this section for major disasters occurring in calendar year
2008 may exceed $5,000,000, and may be equal to not more than 50 percent
of the annual operating budget of the local government in any case in
which that local government has suffered a loss of 25 percent or more in
tax revenues: Provided, That the cost of modifying such loans shall be
as defined in section 502 of the Congressional Budget Act of 1974 (2
U.S.C. 661a).
emergency food and shelter
For an additional amount to carry out the emergency food and shelter
program pursuant to title III of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11331 et seq.), $100,000,000: Provided, That total
administrative costs shall not exceed 3.5 percent of the total amount
made available under this heading.
GENERAL PROVISIONS--THIS TITLE
Sec. 601. <<NOTE: President. Panel.>> Notwithstanding any other
provision of law, the President shall establish an arbitration panel
under the Federal Emergency Management Agency public assistance program
to expedite the recovery efforts from Hurricanes Katrina and Rita within
the Gulf Coast Region. The arbitration panel shall have sufficient
authority regarding the award or denial of disputed public assistance
applications for covered hurricane damage under section 403, 406, or 407
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170b, 5172, or 5173) for a project the total amount of which
is more than $500,000.
Sec. 602. The Administrator of the Federal Emergency Management
Agency may not prohibit or restrict the use of funds designated under
the hazard mitigation grant program for damage caused by Hurricanes
Katrina and Rita if the homeowner who is an applicant for assistance
under such program commenced work
[[Page 123 STAT. 165]]
otherwise eligible for hazard mitigation grant program assistance under
section 404 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170c) without approval in writing from the
Administrator.
Sec. 603. Subparagraph (E) of section 34(a)(1) of the Federal Fire
Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not
apply with respect to funds appropriated in this or any other Act making
appropriations for fiscal year 2009 or 2010 for grants under such
section 34.
Sec. 604. <<NOTE: 6 USC 453b.>> (a) Requirement.--Except as provided
in subsections (c) through (g), funds appropriated or otherwise
available to the Department of Homeland Security may not be used for the
procurement of an item described in subsection (b) if the item is not
grown, reprocessed, reused, or produced in the United States.
(b) Covered Items.--An item referred to in subsection (a) is any of
the following, if the item is directly related to the national security
interests of the United States:
(1) An article or item of--
(A) clothing and the materials and components
thereof, other than sensors, electronics, or other items
added to, and not normally associated with, clothing
(and the materials and components thereof);
(B) tents, tarpaulins, covers, textile belts, bags,
protective equipment (including but not limited to body
armor), sleep systems, load carrying equipment
(including but not limited to fieldpacks), textile
marine equipment, parachutes, or bandages;
(C) cotton and other natural fiber products, woven
silk or woven silk blends, spun silk yarn for cartridge
cloth, synthetic fabric or coated synthetic fabric
(including all textile fibers and yarns that are for use
in such fabrics), canvas products, or wool (whether in
the form of fiber or yarn or contained in fabrics,
materials, or manufactured articles); or
(D) any item of individual equipment manufactured
from or containing such fibers, yarns, fabrics, or
materials.
(c) Availability Exception.--Subsection (a) does not apply to the
extent that the Secretary of Homeland Security determines that
satisfactory quality and sufficient quantity of any such article or item
described in subsection (b)(1) grown, reprocessed, reused, or produced
in the United States cannot be procured as and when needed at United
States market prices. This section is not applicable to covered items
that are, or include, materials determined to be non-available in
accordance with Federal Acquisition Regulation 25.104 Nonavailable
Articles.
(d) De Minimis Exception.--Notwithstanding subsection (a), the
Secretary of Homeland Security may accept delivery of an item covered by
subsection (b) that contains non-compliant fibers if the total value of
non-compliant fibers contained in the end item does not exceed 10
percent of the total purchase price of the end item.
(e) Exception for Certain Procurements Outside the United States.--
Subsection (a) does not apply to the following:
(1) Procurements by vessels in foreign waters.
(2) Emergency procurements.
(f) Exception for Small Purchases.--Subsection (a) does not apply to
purchases for amounts not greater than the simplified
[[Page 123 STAT. 166]]
acquisition threshold referred to in section 2304(g) of title 10, United
States Code.
(g) Applicability to Contracts and Subcontracts for Procurement of
Commercial Items.--This section is applicable to contracts and
subcontracts for the procurement of commercial items not withstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430), with the exception of commercial items listed under subsections
(b)(1)(C) and (b)(1)(D) above. For the purposes of this section,
``commercial'' shall be as defined in the Federal Acquisition
Regulation--Part 2.
(h) Geographic Coverage.--In this section, the term ``United
States'' includes the possessions of the United States.
(i) <<NOTE: Internet posting.>> Notification Required Within 7 Days
After Contract Award if Certain Exceptions Applied.--In the case of any
contract for the procurement of an item described in subsection (b)(1),
if the Secretary of Homeland Security applies an exception set forth in
subsection (c) with respect to that contract, the Secretary shall, not
later than 7 days after the award of the contract, post a notification
that the exception has been applied on the Internet site maintained by
the General Services Administration known as FedBizOps.gov (or any
successor site).
(j) Training During Fiscal Year 2009.--
(1) In general.--The Secretary of Homeland Security shall
ensure that each member of the acquisition workforce in the
Department of Homeland Security who participates personally and
substantially in the acquisition of textiles on a regular basis
receives training during fiscal year 2009 on the requirements of
this section and the regulations implementing this section.
(2) Inclusion of information in new training programs.--The
Secretary shall ensure that any training program for the
acquisition workforce developed or implemented after the date of
the enactment of this Act includes comprehensive information on
the requirements described in paragraph (1).
(k) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.--
<<NOTE: Applicability.>> This section shall be applied in a manner
consistent with United States obligations under international
agreements.
(l) Effective Date.--This section applies with respect to contracts
entered into by the Department of Homeland Security 180 days after the
date of the enactment of this Act.
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
management of lands and resources
For an additional amount for ``Management of Lands and Resources'',
for activities on all Bureau of Land Management lands including
maintenance, rehabilitation, and restoration of facilities, property,
trails and lands and for remediation of abandoned mines and wells,
$125,000,000.
[[Page 123 STAT. 167]]
construction
For an additional amount for ``Construction'', for activities on all
Bureau of Land Management lands including construction, reconstruction,
decommissioning and repair of roads, bridges, trails, property, and
facilities and for energy efficient retrofits of existing facilities,
$180,000,000.
wildland fire management
For an additional amount for ``Wildland Fire Management'', for
hazardous fuels reduction, $15,000,000.
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'', for deferred
maintenance, construction, and capital improvement projects on national
wildlife refuges and national fish hatcheries and for high priority
habitat restoration projects, $165,000,000.
construction
For an additional amount for ``Construction'', for construction,
reconstruction, and repair of roads, bridges, property, and facilities
and for energy efficient retrofits of existing facilities, $115,000,000.
National Park Service
operation of the national park system
For an additional amount for ``Operation of the National Park
System'', for deferred maintenance of facilities and trails and for
other critical repair and rehabilitation projects, $146,000,000.
Historic Preservation Fund
For an additional amount for ``Historic Preservation Fund'', for
historic preservation projects at historically black colleges and
universities as authorized by the Historic Preservation Fund Act of 1996
and the Omnibus Parks and Public Lands Act of 1996, $15,000,000:
Provided, That any matching requirements otherwise required for such
projects are waived.
construction
For an additional amount for ``Construction'', for repair and
restoration of roads; construction of facilities, including energy
efficient retrofits of existing facilities; equipment replacement;
preservation and repair of historical resources within the National Park
System; cleanup of abandoned mine sites on park lands; and other
critical infrastructure projects, $589,000,000.
[[Page 123 STAT. 168]]
United States Geological Survey
surveys, investigations, and research
For an additional amount for ``Surveys, Investigations, and
Research'', $140,000,000, for repair, construction and restoration of
facilities; equipment replacement and upgrades including stream gages,
and seismic and volcano monitoring systems; national map activities; and
other critical deferred maintenance and improvement projects.
Bureau of Indian Affairs
operation of indian programs
For an additional amount for ``Operation of Indian Programs'', for
workforce training programs and the housing improvement program,
$40,000,000.
construction
For an additional amount for ``Construction'', for repair and
restoration of roads; replacement school construction; school
improvements and repairs; and detention center maintenance and repairs,
$450,000,000: Provided, That section 1606 of this Act shall not apply to
tribal contracts entered into by the Bureau of Indian Affairs with this
appropriation.
indian guaranteed loan program account
For an additional amount for ``Indian Guaranteed Loan Program
Account'', $10,000,000.
Office of Inspector General
salaries and expenses
For an additional amount for ``Office of Inspector General'',
$15,000,000, to remain available until September 30, 2012.
ENVIROMENTAL PROTECTION AGENCY
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$20,000,000, to remain available until September 30, 2012.
Hazardous Substance Superfund
For an additional amount for ``Hazardous Substance Superfund'',
$600,000,000, which shall be for the Superfund Remedial program:
Provided, That the Administrator of the Environmental Protection Agency
(Administrator) may retain up to 3 percent of the funds appropriated
herein for management and oversight purposes.
[[Page 123 STAT. 169]]
Leaking Underground Storage Tank Trust Fund Program
For an additional amount for ``Leaking Underground Storage Tank
Trust Fund Program'', $200,000,000, which shall be for cleanup
activities authorized by section 9003(h) of the Solid Waste Disposal
Act: Provided, That none of these funds shall be subject to cost share
requirements under section 9003(h)(7)(B) of such Act: Provided further,
That the Administrator may retain up to 1.5 percent of the funds
appropriated herein for management and oversight purposes.
State and Tribal Assistance Grants
(including transfers of funds)
For an additional amount for ``State and Tribal Assistance Grants'',
$6,400,000,000, which shall be allocated as follows:
(1) $4,000,000,000 shall be for capitalization grants for
the Clean Water State Revolving Funds under title VI of the
Federal Water Pollution Control Act and $2,000,000,000 shall be
for capitalization grants under section 1452 of the Safe
Drinking Water Act: Provided, That the Administrator may retain
up to 1 percent of the funds appropriated herein for management
and oversight purposes: Provided further, That funds
appropriated herein shall not be subject to the matching or cost
share requirements of sections 602(b)(2), 602(b)(3) or 202 of
the Federal Water Pollution Control Act nor the matching
requirements of section 1452(e) of the Safe Drinking Water Act:
Provided further, <<NOTE: Deadline.>> That the Administrator
shall reallocate funds appropriated herein for the Clean and
Drinking Water State Revolving Funds (Revolving Funds) where
projects are not under contract or construction within 12 months
of the date of enactment of this Act: Provided further, That
notwithstanding the priority rankings they would otherwise
receive under each program, priority for funds appropriated
herein shall be given to projects on a State priority list that
are ready to proceed to construction within 12 months of the
date of enactment of this Act: Provided further, That
notwithstanding the requirements of section 603(d) of the
Federal Water Pollution Control Act or section 1452(f) of the
Safe Drinking Water Act, for the funds appropriated herein, each
State shall use not less than 50 percent of the amount of its
capitalization grants to provide additional subsidization to
eligible recipients in the form of forgiveness of principal,
negative interest loans or grants or any combination of these:
Provided further, That, to the extent there are sufficient
eligible project applications, not less than 20 percent of the
funds appropriated herein for the Revolving Funds shall be for
projects to address green infrastructure, water or energy
efficiency improvements or other environmentally innovative
activities: Provided further, That notwithstanding the
limitation on amounts specified in section 518(c) of the Federal
Water Pollution Control Act, up to 1.5 percent of the funds
appropriated herein for the Clean Water State Revolving Funds
may be reserved by the Administrator for tribal grants under
section 518(c) of such Act: Provided further, That up to 4
percent of the funds appropriated herein for tribal set-asides
under the Revolving Funds may be transferred to the Indian
[[Page 123 STAT. 170]]
Health Service to support management and oversight of tribal
projects: Provided further, That none of the funds appropriated
herein shall be available for the purchase of land or easements
as authorized by section 603(c) of the Federal Water Pollution
Control Act or for activities authorized by section 1452(k) of
the Safe Drinking Water Act: Provided further, That
notwithstanding section 603(d)(2) of the Federal Water Pollution
Control Act and section 1452(f)(2) of the Safe Drinking Water
Act, funds may be used to buy, refinance or restructure the debt
obligations of eligible recipients only where such debt was
incurred on or after October 1, 2008;
(2) $100,000,000 shall be to carry out Brownfields projects
authorized by section 104(k) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980: Provided,
That the Administrator may reserve up to 3.5 percent of the
funds appropriated herein for management and oversight purposes:
Provided further, That none of the funds appropriated herein
shall be subject to cost share requirements under section
104(k)(9)(B)(iii) of such Act; and
(3) $300,000,000 shall be for Diesel Emission Reduction Act
grants pursuant to title VII, subtitle G of the Energy Policy
Act of 2005: Provided, That the Administrator may reserve up to
2 percent of the funds appropriated herein for management and
oversight purposes: Provided further, That none of the funds
appropriated herein for Diesel Emission Reduction Act grants
shall be subject to the State Grant and Loan Program Matching
Incentive provisions of section 793(c)(3) of such Act.
Administrative Provision, Environmental Protection Agency
(Including Transfers of Funds)
Funds made available to the Environmental Protection Agency by this
Act for management and oversight purposes shall remain available until
September 30, 2011, and may be transferred to the ``Environmental
Programs and Management'' account as needed.
DEPARTMENT OF AGRICULTURE
Forest Service
capital improvement and maintenance
For an additional amount for ``Capital Improvement and
Maintenance'', $650,000,000, for priority road, bridge and trail
maintenance and decommissioning, including related watershed restoration
and ecosystem enhancement projects; facilities improvement, maintenance
and renovation; remediation of abandoned mine sites; and support costs
necessary to carry out this work.
wildland fire management
For an additional amount for ``Wildland Fire Management'',
$500,000,000, of which $250,000,000 is for hazardous fuels reduction,
forest health protection, rehabilitation and hazard mitigation
activities on Federal lands and of which $250,000,000 is for State and
private forestry activities including hazardous fuels reduction,
[[Page 123 STAT. 171]]
forest health and ecosystem improvement activities on State and private
lands using all authorities available to the Forest Service: Provided,
That up to $50,000,000 of the total funding may be used to make wood-to-
energy grants to promote increased utilization of biomass from Federal,
State and private lands: Provided further, That funds provided for
activities on State and private lands shall not be subject to matching
or cost share requirements.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Indian Health Service
indian health services
For an additional amount for ``Indian Health Services'', for health
information technology activities, $85,000,000: Provided, That such
funds may be used for both telehealth services development and related
infrastructure requirements that are typically funded through the
``Indian Health Facilities'' account: Provided further, That
notwithstanding any other provision of law, health information
technology funds provided within this title shall be allocated at the
discretion of the Director of the Indian Health Service.
indian health facilities
For an additional amount for ``Indian Health Facilities'', for
facilities construction projects, deferred maintenance and improvement
projects, the backlog of sanitation projects and the purchase of
equipment, $415,000,000, of which $227,000,000 is provided within the
health facilities construction activity for the completion of up to two
facilities from the current priority list for which work has already
been initiated: Provided, That for the purposes of this Act, spending
caps included within the annual appropriation for ``Indian Health
Facilities'' for the purchase of medical equipment shall not apply:
Provided further, That section 1606 of this Act shall not apply to
tribal contracts entered into by the Service with this appropriation.
OTHER RELATED AGENCIES
Smithsonian Institution
Facilities Capital
For an additional amount for ``Facilities Capital'', for repair and
revitalization of existing facilities, $25,000,000.
National Foundation on the Arts and the Humanities
National Endowment for the Arts
grants and administration
For an additional amount for ``Grants and Administration'',
$50,000,000, to be distributed in direct grants to fund arts projects
and activities which preserve jobs in the non-profit arts sector
threatened by declines in philanthropic and other support during
[[Page 123 STAT. 172]]
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, <<NOTE: Waiver authority.>> That matching
requirements under section 5(e) of such Act shall be waived.
GENERAL PROVISIONS--THIS TITLE
Sec. 701. <<NOTE: Deadlines. Expenditure plan.>> (a) Within 30 days
of enactment of this Act, each agency receiving funds under this title
shall submit a general plan for the expenditure of such funds to the
House and Senate Committees on Appropriations.
(b) <<NOTE: Reports.>> Within 90 days of enactment of this Act, each
agency receiving funds under this title shall submit to the Committees a
report containing detailed project level information associated with the
general plan submitted pursuant to subsection (a).
Sec. 702. In carrying out the work for which funds in this title
are being made available, the Secretary of the Interior and the
Secretary of Agriculture shall utilize, where practicable, the Public
Lands Corps, Youth Conservation Corps, Student Conservation Association,
Job Corps and other related partnerships with Federal, State, local,
tribal or non-profit groups that serve young adults.
Sec. 703. <<NOTE: Notification. Deadline.>> Each agency receiving
funds under this title may transfer up to 10 percent of the funds in any
account to other appropriation accounts within the agency, if the head
of the agency (1) determines that the transfer will enhance the
efficiency or effectiveness of the use of the funds without changing the
intended purpose; and (2) notifies the Committees on Appropriations of
the House of Representatives and the Senate 10 days prior to the
transfer.
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES
DEPARTMENT OF LABOR
Employment and Training Administration
training and employment <<NOTE: Grants.>> services
For an additional amount for ``Training and Employment Services''
for activities under the Workforce Investment Act of 1998 (``WIA''),
$3,950,000,000, which shall be available for obligation on the date of
enactment of this Act, as follows:
(1) $500,000,000 for grants to the States for adult
employment and training activities, including supportive
services and needs-related payments described in section
134(e)(2) and (3) of the WIA: Provided, That a priority use of
these funds shall be services to individuals described in
134(d)(4)(E) of the WIA;
(2) $1,200,000,000 for grants to the States for youth
activities, including summer employment for youth: Provided,
That no portion of such funds shall be reserved to carry out
section 127(b)(1)(A) of the WIA: Provided further, That for
purposes
[[Page 123 STAT. 173]]
of section 127(b)(1)(C)(iv) of the WIA, funds available for
youth activities shall be allotted as if the total amount
available for youth activities in the fiscal year does not
exceed $1,000,000,000: <<NOTE: Applicability.>> Provided
further, That with respect to the youth activities provided with
such funds, section 101(13)(A) of the WIA shall be applied by
substituting ``age 24'' for ``age 21'': Provided further, That
the work readiness performance indicator described in section
136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of
performance used to assess the effectiveness of summer
employment for youth provided with such funds;
(3) $1,250,000,000 for grants to the States for dislocated
worker employment and training activities;
(4) $200,000,000 for the dislocated workers assistance
national reserve;
(5) $50,000,000 for YouthBuild activities: Provided, That
for program years 2008 and 2009, the YouthBuild program may
serve an individual who has dropped out of high school and re-
enrolled in an alternative school, if that re-enrollment is part
of a sequential service strategy; and
(6) $750,000,000 for a program of competitive grants for
worker training and placement in high growth and emerging
industry sectors: Provided, That $500,000,000 shall be for
research, labor exchange and job training projects that prepare
workers for careers in energy efficiency and renewable energy as
described in section 171(e)(1)(B) of the WIA: Provided further,
That in awarding grants from those funds not designated in the
preceding proviso, the Secretary of Labor shall give priority to
projects that prepare workers for careers in the health care
sector:
Provided, That funds made available in this paragraph shall remain
available through June 30, 2010: Provided further, That a local board
may award a contract to an institution of higher education or other
eligible training provider if the local board determines that it would
facilitate the training of multiple individuals in high-demand
occupations, if such contract does not limit customer choice.
community service employment for older americans
For an additional amount for ``Community Service Employment for
Older Americans'' to carry out title V of the Older Americans Act of
1965, $120,000,000, which shall be available for obligation on the date
of enactment of this Act and shall remain available through June 30,
2010: Provided, <<NOTE: Deadline.>> That funds shall be allotted within
30 days of such enactment to current grantees in proportion to their
allotment in program year 2008: Provided further, That funds made
available under this heading in this Act may, in accordance with section
517(c) of the Older Americans Act of 1965, be recaptured and
reobligated.
state unemployment insurance and employment service operations
For an additional amount for ``State Unemployment Insurance and
Employment Service Operations'' for grants to States in accordance with
section 6 of the Wagner-Peyser Act, $400,000,000, which may be expended
from the Employment Security Administration Account in the Unemployment
Trust Fund, and which shall be
[[Page 123 STAT. 174]]
available for obligation on the date of enactment of this Act: Provided,
That such funds shall remain available to the States through September
30, 2010: Provided further, That $250,000,000 of such funds shall be
used by States for reemployment services for unemployment insurance
claimants (including the integrated Employment Service and Unemployment
Insurance information technology required to identify and serve the
needs of such claimants): Provided further, <<NOTE: Procedures.>> That
the Secretary of Labor shall establish planning and reporting procedures
necessary to provide oversight of funds used for reemployment services.
Departmental Management
salaries and expenses
(including transfer of funds)
For an additional amount for ``Departmental Management'',
$80,000,000, for the enforcement of worker protection laws and
regulations, oversight, and coordination activities related to the
infrastructure and unemployment insurance investments in this Act:
Provided, That the Secretary of Labor may transfer such sums as
necessary to ``Employment and Standards Administration'', ``Employee
Benefits Security Administration'', ``Occupational Safety and Health
Administration'', and ``Employment and Training Administration--Program
Administration'' for enforcement, oversight, and coordination
activities: Provided further, <<NOTE: Operating plan.>> That prior to
obligating any funds proposed to be transferred from this account, the
Secretary shall provide to the Committees on Appropriations of the House
of Representatives and the Senate an operating plan describing the
planned uses of each amount proposed to be transferred.
office of job corps
For an additional amount for ``Office of Job Corps'', $250,000,000,
for construction, rehabilitation and acquisition of Job Corps Centers,
which shall be available upon the date of enactment of this Act and
remain available for obligation through June 30, 2010: Provided, That
section 1552(a) of title 31, United States Code shall not apply if funds
are used for a multi-year lease agreement that will result in
construction activities that can commence within 120 days of enactment
of this Act: Provided further, That notwithstanding section 3324(a) of
title 31, United States Code, the funds used for an agreement under the
preceding proviso may be used for advance, progress, and other payments:
Provided further, That the Secretary of Labor may transfer up to 15
percent of such funds to meet the operational needs of such centers,
which may include training for careers in the energy efficiency,
renewable energy, and environmental protection
industries: <<NOTE: Operating plan. Reports. Deadlines.>> Provided
further, That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate an
operating plan describing the allocation of funds, and a report on the
actual obligations, expenditures, and unobligated balances for each
activity funded under this heading not later than September 30, 2009 and
quarterly thereafter as long as funding provided under this heading is
available for obligation or expenditure.
[[Page 123 STAT. 175]]
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$6,000,000, which shall remain available through September 30, 2012, for
salaries and expenses necessary for oversight and audit of programs,
grants, and projects funded in this Act.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
health resources and services
For an additional amount for ``Health Resources and Services'',
$2,500,000,000 which shall be used as follows:
(1) $500,000,000 shall be for grants to health centers
authorized under section 330 of the Public Health Service Act
(``PHS Act'');
(2) $1,500,000,000 shall be available for grants for
construction, renovation and equipment, and for the acquisition
of health information technology systems, for health centers
including health center controlled networks receiving operating
grants under section 330 of the PHS Act, notwithstanding the
limitation in section 330(e)(3); and
(3) $500,000,000 to address health professions workforce
shortages, of which $75,000,000 for the National Health Service
Corps shall remain available through September 30, 2011:
Provided, That funds may be used to provide scholarships, loan
repayment, and grants to training programs for equipment as
authorized in the PHS Act, and grants authorized in sections
330L, 747, 767 and 768 of the PHS Act: Provided further, That 20
percent of the funds allocated to the National Health Service
Corps shall be used for field operations:
Provided, That up to 0.5 percent of funds provided in this paragraph
may used for administration of such funds: <<NOTE: Operating
plan. Deadline.>> Provided further, That the Secretary shall provide to
the Committees on Appropriations of the House of Representatives and the
Senate an operating plan detailing activities to be supported and
timelines for expenditure prior to making any Federal obligations of
funds provided in this paragraph but not later than 90 days after the
date of enactment of this Act: <<NOTE: Reports. Deadlines.>> Provided
further, That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate a report
on the actual obligations, expenditures, and unobligated balances for
each activity funded in this paragraph not later than November 1, 2009
and every 6 months thereafter as long as funding provided in this
paragraph is available for obligation or expenditure.
National Institutes of Health
national center for research resources
For <<NOTE: Grants. Contracts.>> an additional amount for ``National
Center for Research Resources'', $1,300,000,000, of which $1,000,000,000
shall be for grants or contracts under section 481A of the Public Health
Service Act to construct, renovate or repair existing non-Federal
research facilities: Provided, That sections 481A(c)(1)(B)(ii),
paragraphs (1), (3), and (4) of section 481A(e), and section 481B of
such Act shall
[[Page 123 STAT. 176]]
not apply to the use of such funds: Provided further, That the
references to ``20 years'' in subsections (c)(1)(B)(i) and (f) of
section 481A of such Act are deemed to be references to ``10 years'' for
purposes of using such funds: Provided further, That the National Center
for Research Resources may also use $300,000,000 to provide, under the
authority of section 301 and title IV of such Act, shared
instrumentation and other capital research equipment to recipients of
grants and contracts under section 481A of such Act and other
appropriate entities: Provided
further, <<NOTE: Reports. Deadline.>> That the Director of the Center
shall provide to the Committees on Appropriations of the House of
Representatives and the Senate an annual report indicating the number of
institutions receiving awards of a grant or contract under section 481A
of such Act, the proposed use of the funding, the average award size, a
list of grant or contract recipients, and the amount of each award.
office of the director
(including transfer of funds)
For an additional amount for ``Office of the Director'',
$8,200,000,000: Provided, That $7,400,000,000 shall be transferred to
the Institutes and Centers of the National Institutes of Health
(``NIH'') and to the Common Fund established under section 402A(c)(1) of
the Public Health Service Act in proportion to the appropriations
otherwise made to such Institutes, Centers, and Common Fund for fiscal
year 2009: Provided further, That these funds shall be used to support
additional scientific research and shall be merged with and be available
for the same purposes as the appropriation or fund to which transferred:
Provided further, That this transfer authority is in addition to any
other transfer authority available to the NIH: Provided further, That
none of these funds may be transferred to ``National Institutes of
Health--Buildings and Facilities'', the Center for Scientific Review,
the Center for Information Technology, the Clinical Center, or the
Global Fund for HIV/AIDS, Tuberculosis and Malaria: Provided further,
That the funds provided in this Act to the NIH shall not be subject to
the provisions of 15 U.S.C. 638(f)(1) and 15 U.S.C. 638(n)(1): Provided
further, That $400,000,000 may be used to carry out section 215 of
division G of Public Law 110-161.
buildings and facilities
For an additional amount for ``Buildings and Facilities'',
$500,000,000, to fund high-priority repair, construction and improvement
projects for National Institutes of Health facilities on the Bethesda,
Maryland campus and other agency locations.
Agency for Healthcare Research and Quality
healthcare research and quality
(including transfer of funds)
For an additional amount for ``Healthcare Research and Quality'' to
carry out titles III and IX of the Public Health Service Act, part A of
title XI of the Social Security Act, and section
[[Page 123 STAT. 177]]
1013 of the Medicare Prescription Drug, Improvement, and Modernization
Act of 2003, $700,000,000 for comparative effectiveness research:
Provided, That of the amount appropriated in this paragraph,
$400,000,000 shall be transferred to the Office of the Director of the
National Institutes of Health (``Office of the Director'') to conduct or
support comparative effectiveness research under section 301 and title
IV of the Public Health Service Act: Provided further, That funds
transferred to the Office of the Director may be transferred to the
Institutes and Centers of the National Institutes of Health and to the
Common Fund established under section 402A(c)(1) of the Public Health
Service Act: Provided further, That this transfer authority is in
addition to any other transfer authority available to the National
Institutes of Health: Provided further, That within the amount available
in this paragraph for the Agency for Healthcare Research and Quality,
not more than 1 percent shall be made available for additional full-time
equivalents.
In addition, $400,000,000 shall be available for comparative
effectiveness research to be allocated at the discretion of the
Secretary of Health and Human Services (``Secretary''): Provided, That
the funding appropriated in this paragraph shall be used to accelerate
the development and dissemination of research assessing the comparative
effectiveness of health care treatments and strategies, through efforts
that: (1) conduct, support, or synthesize research that compares the
clinical outcomes, effectiveness, and appropriateness of items,
services, and procedures that are used to prevent, diagnose, or treat
diseases, disorders, and other health conditions; and (2) encourage the
development and use of clinical registries, clinical data networks, and
other forms of electronic health data that can be used to generate or
obtain outcomes data: Provided
further, <<NOTE: Contracts. Reports. Deadline.>> That the Secretary
shall enter into a contract with the Institute of Medicine, for which no
more than $1,500,000 shall be made available from funds provided in this
paragraph, to produce and submit a report to the Congress and the
Secretary by not later than June 30, 2009, that includes recommendations
on the national priorities for comparative effectiveness research to be
conducted or supported with the funds provided in this paragraph and
that considers input from stakeholders: Provided further, That the
Secretary shall consider any recommendations of the Federal Coordinating
Council for Comparative Effectiveness Research established by section
804 of this Act and any recommendations included in the Institute of
Medicine report pursuant to the preceding proviso in designating
activities to receive funds provided in this paragraph and may make
grants and contracts with appropriate entities, which may include
agencies within the Department of Health and Human Services and other
governmental agencies, as well as private sector entities, that have
demonstrated experience and capacity to achieve the goals of comparative
effectiveness research: <<NOTE: Publication.>> 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: <<NOTE: Public comment.>> 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, <<NOTE: Research and
development.>> That research conducted with funds appropriated under
this paragraph
[[Page 123 STAT. 178]]
shall be consistent with Departmental policies relating to the inclusion
of women and minorities in research: Provided
further, <<NOTE: Reports. Deadline.>> That the Secretary shall provide
the Committees on Appropriations of the House of Representatives and the
Senate, the Committee on Energy and Commerce and the Committee on Ways
and Means of the House of Representatives, and the Committee on Health,
Education, Labor, and Pensions and the Committee on Finance of the
Senate with an annual report on the research conducted or supported
through the funds provided under this <<NOTE: Operating
plans. Deadlines.>> heading: Provided further, That the Secretary,
jointly with the Directors of the Agency for Healthcare Research and
Quality and the National Institutes of Health, shall provide the
Committees on Appropriations of the House of Representatives and the
Senate a fiscal year 2009 operating plan for the funds appropriated
under this heading prior to making any Federal obligations of such funds
in fiscal year 2009, but not later than July 30, 2009, and a fiscal year
2010 operating plan for such funds prior to making any Federal
obligations of such funds in fiscal year 2010, but not later than
November 1, 2009, that detail the type of research being conducted or
supported, including the priority conditions addressed; and specify the
allocation of resources within the Department of Health and Human
Services: Provided further, <<NOTE: Reports. Deadlines.>> That the
Secretary, jointly with the Directors of the Agency for Healthcare
Research and Quality and the National Institutes of Health, shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity funded under
this heading not later than November 1, 2009, and every 6 months
thereafter as long as funding provided under this heading is available
for obligation or expenditure.
Administration for Children and Families
payments to states for the child care and development block grant
For an additional amount for ``Payments to States for the Child Care
and Development Block Grant'', $2,000,000,000, which shall be used to
supplement, not supplant State general revenue funds for child care
assistance for low-income families: Provided, That, in addition to the
amounts required to be reserved by the States under section 658G of the
Child Care and Development Block Grant Act of 1990, $255,186,000 shall
be reserved by the States for activities authorized under section 658G,
of which $93,587,000 shall be for activities that improve the quality of
infant and toddler care.
children and families services programs
For an additional amount for ``Children and Families Services
Programs'', $3,150,000,000, which shall be used as follows:
(1) $1,000,000,000 for carrying out activities under the
Head Start Act.
(2) $1,100,000,000 for expansion of Early Head Start
programs, as described in section 645A of the Head Start Act:
Provided, That of the funds provided in this paragraph, up to 10
percent shall be available for the provision of training
[[Page 123 STAT. 179]]
and technical assistance to such programs consistent with
section 645A(g)(2) of such Act, and up to 3 percent shall be
available for monitoring the operation of such programs
consistent with section 641A of such Act.
(3) $1,000,000,000 for carrying out activities under
sections 674 through 679 of the Community Services Block Grant
Act, of which no part shall be subject to section 674(b)(3) of
such Act: Provided, That notwithstanding section 675C(a)(1) and
675C(b) of such Act, 1 percent of the funds made available to
each State from this additional amount shall be used for
benefits enrollment coordination activities relating to the
identification and enrollment of eligible individuals and
families in Federal, State, and local benefit programs: Provided
further, That all funds remaining available to a State from this
additional amount after application of the previous proviso
shall be distributed to eligible entities as defined in section
673(1) of such Act: Provided further, That for services
furnished under such Act during fiscal years 2009 and 2010,
States may apply the last sentence of section 673(2) of such Act
by substituting ``200 percent'' for ``125 percent''.
(4) $50,000,000 for carrying out activities under section
1110 of the Social Security Act.
Administration on Aging
aging services programs
For an additional amount for ``Aging Services Programs'' under
subparts 1 and 2 of part C, of title III, and under title VI, of the
Older Americans Act of 1965, $100,000,000, of which $65,000,000 shall be
for Congregate Nutrition Services, $32,000,000 shall be for Home-
Delivered Nutrition Services and $3,000,000 shall be for Nutrition
Services for Native Americans.
Office of the Secretary
office of the national coordinator for health information technology
(including transfer of funds)
For an additional amount for ``Office of the National Coordinator
for Health Information Technology'', $2,000,000,000, to carry out title
XIII of this Act, to remain available until expended: Provided, That of
such amount, the Secretary of Health and Human Services shall transfer
$20,000,000 to the Director of the National Institute of Standards and
Technology in the Department of Commerce for continued work on advancing
health care information enterprise integration through activities such
as technical standards analysis and establishment of conformance testing
infrastructure, so long as such activities are coordinated with the
Office of the National Coordinator for Health Information Technology:
Provided further, That $300,000,000 is to support regional or sub-
national efforts toward health information exchange: Provided further,
That 0.25 percent of the funds provided in this paragraph may be used
for administration of such funds: <<NOTE: Operating
plan. Deadline.>> Provided further, That funds available under this
heading shall become available for obligation only upon submission of an
annual operating plan by the Secretary
[[Page 123 STAT. 180]]
to the Committees on Appropriations of the House of Representatives and
the Senate: <<NOTE: Operating plans. Deadlines.>> Provided further, That
the fiscal year 2009 operating plan shall be provided not later than 90
days after enactment of this Act and that subsequent annual operating
plans shall be provided not later than November 1 of each year: Provided
further, That these operating plans shall describe how expenditures are
aligned with the specific objectives, milestones, and metrics of the
Federal Health Information Technology Strategic Plan, including any
subsequent updates to the Plan; the allocation of resources within the
Department of Health and Human Services and other Federal agencies; and
the identification of programs and activities that are
supported: <<NOTE: Reports. Deadlines.>> Provided further, That the
Secretary shall provide to the Committees on Appropriations of the House
of Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each major set of activities
not later than November 1, 2009, and every 6 months thereafter as long
as funding provided under this heading is available for obligation or
expenditure.
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$17,000,000 which shall remain available until September 30, 2012.
public health and social services emergency fund
For an additional amount for ``Public Health and Social Services
Emergency Fund'' to improve information technology security at the
Department of Health and Human Services, $50,000,000.
prevention and wellness fund
(including transfer of funds)
For necessary expenses for a ``Prevention and Wellness Fund'' to be
administered through the Department of Health and Human Services, Office
of the Secretary, $1,000,000,000: Provided, That of the amount provided
in this paragraph, $300,000,000 shall be transferred to the Centers for
Disease Control and Prevention (``CDC'') as an additional amount to
carry out the immunization program (``section 317 immunization
program'') authorized by section 317(a), (j), and (k)(1) of the Public
Health Service Act (``PHS Act''): Provided further, That of the amount
provided in this paragraph, $650,000,000 shall be to carry out evidence-
based clinical and community-based prevention and wellness strategies
authorized by the PHS Act, as determined by the Secretary, that deliver
specific, measurable health outcomes that address chronic disease rates:
Provided further, That funds appropriated in the preceding proviso may
be transferred to other appropriation accounts of the Department of
Health and Human Services, as determined by the Secretary to be
appropriate: Provided further, That of the amount appropriated in this
paragraph, $50,000,000 shall be provided to States for an additional
amount to carry out activities to implement healthcare associated
infections reduction strategies: Provided further, That not more than
0.5 percent of funds made available in this paragraph may be used for
management and oversight expenses in the office or division of the
Department of Health and Human Services administering the
funds: <<NOTE: Contracts. Evaluations. Deadline.>> Provided further,
[[Page 123 STAT. 181]]
That the Secretary shall, directly or through contracts with public or
private entities, provide for annual evaluations of programs carried out
with funds provided under this heading in order to determine the quality
and effectiveness of the programs: <<NOTE: Reports. Deadline.>> Provided
further, That the Secretary shall, not later than 1 year after the date
of enactment of this Act, submit to the Committees on Appropriations of
the House of Representatives and the Senate, the Committee on Energy and
Commerce of the House of Representatives, and the Committee on Health,
Education, Labor, and Pensions of the Senate, a report summarizing the
annual evaluations of programs from the preceding proviso: Provided
further, <<NOTE: Operating plan. Deadline.>> That the Secretary shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate an operating plan for the Prevention and
Wellness Fund prior to making any Federal obligations of funds provided
in this paragraph (excluding funds to carry out the section 317
immunization program), but not later than 90 days after the date of
enactment of this Act, that indicates the prevention priorities to be
addressed; provides measurable goals for each prevention priority;
details the allocation of resources within the Department of Health and
Human Services; and identifies which programs or activities are
supported, including descriptions of any new programs or
activities: <<NOTE: Reports. Deadlines.>> Provided further, That the
Secretary shall provide to the Committees on Appropriations of the House
of Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity funded under
this heading not later than November 1, 2009, and every 6 months
thereafter as long as funding provided under this heading is available
for obligation or expenditure.
DEPARTMENT OF EDUCATION
Education for the <<NOTE: Grants.>> Disadvantaged
For an additional amount for ``Education for the Disadvantaged'' to
carry out title I of the Elementary and Secondary Education Act of 1965
(``ESEA''), $13,000,000,000: Provided, That $5,000,000,000 shall be
available for targeted grants under section 1125 of the ESEA: Provided
further, That $5,000,000,000 shall be available for education finance
incentive grants under section 1125A of the ESEA: Provided further, That
$3,000,000,000 shall be for school improvement grants under section
1003(g) of the ESEA: <<NOTE: Deadline. Expenditures.>> Provided further,
That each local educational agency receiving funds available under this
paragraph shall be required to file with the State educational agency,
no later than December 1, 2009, a school-by-school listing of per-pupil
educational expenditures from State and local sources during the 2008-
2009 academic year: <<NOTE: Reports. Deadline.>> Provided further, That
each State educational agency shall report that information to the
Secretary of Education by March 31, 2010.
Impact Aid
For an additional amount for ``Impact Aid'' to carry out section
8007 of title VIII of the Elementary and Secondary Education Act of
1965, $100,000,000, which shall be expended pursuant to the requirements
of section 805.
[[Page 123 STAT. 182]]
School Improvement <<NOTE: Grants.>> Programs
For an additional amount for ``School Improvement Programs'' to
carry out subpart 1, part D of title II of the Elementary and Secondary
Education Act of 1965 (``ESEA''), and subtitle B of title VII of the
McKinney-Vento Homeless Assistance Act, $720,000,000: Provided, That
$650,000,000 shall be available for subpart 1, part D of title II of the
ESEA: Provided further, That the Secretary shall allot $70,000,000 for
grants under McKinney-Vento to each State in proportion to the number of
homeless students identified by the State during the 2007-2008 school
year relative to the number of such children identified nationally
during that school year: Provided further, That State educational
agencies shall subgrant the McKinney-Vento funds to local educational
agencies on a competitive basis or according to a formula based on the
number of homeless students identified by the local educational agencies
in the State: Provided further, <<NOTE: Deadline.>> That the Secretary
shall distribute the McKinney-Vento funds to the States not later than
60 days after the date of the enactment of this
Act: <<NOTE: Deadline.>> Provided further, That each State shall
subgrant the McKinney-Vento funds to local educational agencies not
later than 120 days after receiving its grant from the Secretary.
Innovation and Improvement
For an additional amount for ``Innovation and Improvement'' to carry
out subpart 1, part D of title V of the Elementary and Secondary
Education Act of 1965 (``ESEA''), $200,000,000: Provided, That these
funds shall be expended as directed in the fifth, sixth, and seventh
provisos under the heading ``Innovation and Improvement'' in the
Department of Education Appropriations Act, 2008: Provided
further, <<NOTE: Evaluation.>> That a portion of these funds shall also
be used for a rigorous national evaluation by the Institute of Education
Sciences, utilizing randomized controlled methodology to the extent
feasible, that assesses the impact of performance-based teacher and
principal compensation systems supported by the funds provided in this
Act on teacher and principal recruitment and retention in high-need
schools and subjects: Provided further, That the Secretary may reserve
up to 1 percent of the amount made available under this heading for
management and oversight of the activities supported with those funds.
Special Education
For an additional amount for ``Special Education'' for carrying out
parts B and C of the Individuals with Disabilities Education Act
(``IDEA''), $12,200,000,000, of which $11,300,000,000 shall be available
for section 611 of the IDEA: Provided, That if every State, as defined
by section 602(31) of the IDEA, reaches its maximum allocation under
section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds,
such funds shall be proportionally allocated to each State subject to
the maximum amounts contained in section 611(a)(2) of the
IDEA: <<NOTE: Deadline. Grants.>> Provided further, That by July 1,
2009, the Secretary of Education shall reserve the amount needed for
grants under section 643(e) of the IDEA, with any remaining funds to be
allocated in accordance with section 643(c) of the IDEA: Provided
further, That the total amount for each of sections 611(b)(2) and
643(b)(1) of the IDEA, under this and all other Acts,
[[Page 123 STAT. 183]]
for fiscal year 2009, whenever enacted, shall be equal to the amounts
respectively available for these activities under these sections during
fiscal year 2008 increased by the amount of inflation as specified in
section 619(d)(2)(B) of the IDEA: Provided further, That $400,000,000
shall be available for section 619 of the IDEA and $500,000,000 shall be
available for part C of the IDEA.
Rehabilitation Services and Disability <<NOTE: Grants.>> Research
For an additional amount for ``Rehabilitation Services and
Disability Research'' for providing grants to States to carry out the
Vocational Rehabilitation Services program under part B of title I and
parts B and C of chapter 1 and chapter 2 of title VII of the
Rehabilitation Act of 1973, $680,000,000: Provided, That $540,000,000
shall be available for part B of title I of the Rehabilitation Act:
Provided further, That funds provided herein shall not be considered in
determining the amount required to be appropriated under section
100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: Provided
further, That, notwithstanding section 7(14)(A), the Federal share of
the costs of vocational rehabilitation services provided with the funds
provided herein shall be 100 percent: Provided further, That
$140,000,000 shall be available for parts B and C of chapter 1 and
chapter 2 of title VII of the Rehabilitation Act: Provided further, That
$18,200,000 shall be for State Grants, $87,500,000 shall be for
independent living centers, and $34,300,000 shall be for services for
older blind individuals.
Student Financial Assistance
For an additional amount for ``Student Financial Assistance'' to
carry out subpart 1 of part A and part C of title IV of the Higher
Education Act of 1965 (``HEA''), $15,840,000,000, which shall remain
available through September 30, 2011: Provided, That $15,640,000,000
shall be available for subpart 1 of part A of title IV of the HEA:
Provided further, That $200,000,000 shall be available for part C of
title IV of the HEA.
The <<NOTE: 20 USC 1070a note.>> maximum Pell Grant for which a
student shall be eligible during award year 2009-2010 shall be $4,860.
Student Aid Administration
For an additional amount for ``Student Aid Administration'' to carry
out part D of title I, and subparts 1, 3, and 4 of part A, and parts B,
C, D, and E of title IV of the Higher Education Act of 1965,
$60,000,000.
Higher Education
For an additional amount for ``Higher Education'' to carry out part
A of title II of the Higher Education Act of 1965, $100,000,000.
Institute of Education Sciences
For an additional amount for ``Institute of Education Sciences'' to
carry out section 208 of the Educational Technical Assistance Act,
$250,000,000, which may be used for Statewide data systems that include
postsecondary and workforce information, of which
[[Page 123 STAT. 184]]
up to $5,000,000 may be used for State data coordinators and for awards
to public or private organizations or agencies to improve data
coordination.
Departmental Management
office of the inspector general
For an additional amount for the ``Office of the Inspector
General'', $14,000,000, which shall remain available through September
30, 2012, for salaries and expenses necessary for oversight and audit of
programs, grants, and projects funded in this Act.
RELATED AGENCIES
Corporation for National and Community Service
Operating Expenses
(including transfer of funds)
For an additional amount for ``Operating Expenses'' to carry out the
Domestic Volunteer Service Act of 1973 (``1973 Act'') and the National
and Community Service Act of 1990 (``1990 Act''), $160,000,000:
Provided, That $89,000,000 of the funds made available in this paragraph
shall be used to make additional awards to existing AmeriCorps grantees
and may be used to provide adjustments to awards under subtitle C of
title I of the 1990 Act made prior to September 30, 2010 for which the
Chief Executive Officer of the Corporation for National and Community
Service (``CEO'') determines that a waiver of the Federal share
limitation is warranted under section 2521.70 of title 45 of the Code of
Federal Regulations: Provided further, That of the amount made available
in this paragraph, not less than $6,000,000 shall be transferred to
``Salaries and Expenses'' for necessary expenses relating to information
technology upgrades, of which up to $800,000 may be used to administer
the funds provided in this paragraph: Provided further, That of the
amount provided in this paragraph, not less than $65,000,000 shall be
for programs under title I, part A of the 1973 Act: Provided further,
That funds provided in the previous proviso shall not be made available
in connection with cost-share agreements authorized under section
192A(g)(10) of the 1990 Act: Provided further, That of the funds
available under this heading, up to 20 percent of funds allocated to
grants authorized under section 124(b) of title I, subtitle C of the
1990 Act may be used to administer, reimburse, or support any national
service program under section 129(d)(2) of the 1990 Act: Provided
further, That, except as provided herein and in addition to requirements
identified herein, funds provided in this paragraph shall be subject to
the terms and conditions under which funds were appropriated in fiscal
year 2008: <<NOTE: Operating plans. Deadlines.>> Provided further, That
the CEO shall provide the Committees on Appropriations of the House of
Representatives and the Senate a fiscal year 2009 operating plan for the
funds appropriated in this paragraph prior to making any Federal
obligations of such funds in fiscal year 2009, but not later than 90
days after the date of enactment of this Act, and a fiscal year 2010
operating plan for such funds prior to making any Federal obligations of
such funds in fiscal year 2010, but not later than
[[Page 123 STAT. 185]]
November 1, 2009, that detail the allocation of resources and the
increased number of members supported by the AmeriCorps
programs: <<NOTE: Reports. Deadline.>> Provided further, That the CEO
shall provide to the Committees on Appropriations of the House of
Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity funded under
this heading not later than November 1, 2009, and every 6 months
thereafter as long as funding provided under this heading is available
for obligation or expenditure.
Office of Inspector General
For an additional amount for the ``Office of Inspector General'',
$1,000,000, which shall remain available until September 30, 2012.
National Service Trust
(including transfer of funds)
For an additional amount for ``National Service Trust'' established
under subtitle D of title I of the National and Community Service Act of
1990 (``1990 Act''), $40,000,000, which shall remain available until
expended: <<NOTE: Notification.>> Provided, That the Corporation for
National and Community Service may transfer additional funds from the
amount provided within ``Operating Expenses'' for grants made under
subtitle C of title I of the 1990 Act to this appropriation upon
determination that such transfer is necessary to support the activities
of national service participants and after notice is transmitted to the
Committees on Appropriations of the House of Representatives and the
Senate: Provided further, That the amount appropriated for or
transferred to the National Service Trust may be invested under section
145(b) of the 1990 Act without regard to the requirement to apportion
funds under 31 U.S.C. 1513(b).
Social Security Administration
Limitation on Administrative Expenses
(including transfer of funds)
For an additional amount for ``Limitation on Administrative
Expenses'', $1,000,000,000 shall be available as follows:
(1) $500,000,000 shall remain available until expended for
necessary expenses of the replacement of the National Computer
Center and the information technology costs associated with such
Center: <<NOTE: Notification. Deadline.>> Provided, That the
Commissioner of Social Security shall notify the Committees on
Appropriations of the House of Representatives and the Senate
not later than 10 days prior to each public notice soliciting
bids related to site selection and construction and prior to the
lease or purchase of such site: Provided further, That the
construction plan and site selection for such center shall be
subject to review and approval by the Office of Management and
Budget: Provided further, That such center shall continue to be
a government-operated facility; and
(2) $500,000,000 for processing disability and retirement
workloads, including information technology acquisitions and
research in support of such activities: Provided, That up to
[[Page 123 STAT. 186]]
$40,000,000 may be used by the Commissioner of Social Security
for health information technology research and activities to
facilitate the adoption of electronic medical records in
disability claims, including the transfer of funds to
``Supplemental Security Income Program'' to carry out activities
under section 1110 of the Social Security Act.
Office of Inspector General
For an additional amount for the ``Office of Inspector General'',
$2,000,000, which shall remain available through September 30, 2012, for
salaries and expenses necessary for oversight and audit of programs,
projects, and activities funded in this Act.
GENERAL PROVISIONS--THIS TITLE
Sec. 801. (a) Up to 1 percent of the funds made available to the
Department of Labor in this title may be used for the administration,
management, and oversight of the programs, grants, and activities funded
by such appropriation, including the evaluation of the use of such
funds.
(b) Funds designated for these purposes may be available for
obligation through September 30, 2010.
(c) <<NOTE: Deadline. Operating plan.>> Not later than 30 days after
enactment of this Act, the Secretary of Labor shall provide an operating
plan describing the proposed use of funds for the purposes described in
(a).
Sec. 802. Report on the Impact of Past and Future Minimum Wage
Increases. (a) In General.--Section 8104 of the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations
Act, 2007 (Public Law 110-28; 121 Stat. 189) is amended to read as
follows:
``SEC. 8104. <<NOTE: 29 USC 206 note.>> REPORT ON THE IMPACT OF PAST AND
FUTURE MINIMUM WAGE INCREASES.
``(a) <<NOTE: Effective date.>> Study.--Beginning on the date that
is 60 days after the date of enactment of this Act, and every year
thereafter until the minimum wage in the respective territory is $7.25
per hour, the Government Accountability Office shall conduct a study
to--
``(1) assess the impact of the minimum wage increases that
occurred in American Samoa and the Commonwealth of the Northern
Mariana Islands in 2007 and 2008, as required under Public Law
110-28, on the rates of employment and the living standards of
workers, with full consideration of the other factors that
impact rates of employment and the living standards of workers
such as inflation in the cost of food, energy, and other
commodities; and
``(2) estimate the impact of any further wage increases on
rates of employment and the living standards of workers in
American Samoa and the Commonwealth of the Northern Mariana
Islands, with full consideration of the other factors that may
impact the rates of employment and the living standards of
workers, including assessing how the profitability of major
private sector firms may be impacted by wage increases in
comparison to other factors such as energy costs and the value
of tax benefits.
``(b) Report.--No earlier than March 15, 2010, and not later than
April 15, 2010, the Government Accountability Office shall transmit its
first report to Congress concerning the findings of
[[Page 123 STAT. 187]]
the study required under subsection (a). The Government Accountability
Office shall transmit any subsequent reports to Congress concerning the
findings of a study required by subsection (a) between March 15 and
April 15 of each year.
``(c) Economic Information.--To provide sufficient economic data for
the conduct of the study under subsection (a) the Bureau of the Census
of the Department of Commerce shall include and separately report on
American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
and the Virgin Islands in its County Business Patterns data with the
same regularity and to the same extent as each Bureau collects and
reports such data for the 50 States. In the event that the inclusion of
American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
and the Virgin Islands in such surveys and data compilations requires
time to structure and implement, the Bureau of the Census shall in the
interim annually report the best available data that can feasibly be
secured with respect to such territories. Such interim report shall
describe the steps the Bureau will take to improve future data
collection in the territories to achieve comparability with the data
collected in the United States. The Bureau of the Census, together with
the Department of the Interior, shall coordinate their efforts to
achieve such improvements.''.
(b) <<NOTE: 29 USC 206 note.>> Effective Date.--The amendment made
by this section shall take effect on the date of enactment of this Act.
Sec. 803. Eligible Employees in the Recreational Marine Industry.
Section 2(3)(F) of the Longshore and Harbor Workers' Compensation Act
(33 U.S.C. 902(3)(F)) is amended--
(1) by striking ``, repair or dismantle''; and
(2) by striking the semicolon and inserting ``, or
individuals employed to repair any recreational vessel, or to
dismantle any part of a recreational vessel in connection with
the repair of such vessel;''.
Sec. 804. <<NOTE: 42 USC 299b-8.>> Federal Coordinating Council for
Comparative Effectiveness Research. (a) Establishment.--There is hereby
established a Federal Coordinating Council for Comparative Effectiveness
Research (in this section referred to as the ``Council'').
(b) Purpose.--The Council shall foster optimum coordination of
comparative effectiveness and related health services research conducted
or supported by relevant Federal departments and agencies, with the goal
of reducing duplicative efforts and encouraging coordinated and
complementary use of resources.
(c) Duties.--The Council shall--
(1) assist the offices and agencies of the Federal
Government, including the Departments of Health and Human
Services, Veterans Affairs, and Defense, and other Federal
departments or agencies, to coordinate the conduct or support of
comparative effectiveness and related health services research;
and
(2) advise the President and Congress on--
(A) strategies with respect to the infrastructure
needs of comparative effectiveness research within the
Federal Government; and
(B) organizational expenditures for comparative
effectiveness research by relevant Federal departments
and agencies.
(d) Membership.--
[[Page 123 STAT. 188]]
(1) Number and appointment.--The Council shall be composed
of not more than 15 members, all of whom are senior Federal
officers or employees with responsibility for health-related
programs, appointed by the President, acting through the
Secretary of Health and Human Services (in this section referred
to as the ``Secretary''). <<NOTE: Deadline.>> Members shall
first be appointed to the Council not later than 30 days after
the date of the enactment of this Act.
(2) Members.--
(A) In general.--The members of the Council shall
include one senior officer or employee from each of the
following agencies:
(i) The Agency for Healthcare Research and
Quality.
(ii) The Centers for Medicare and Medicaid
Services.
(iii) The National Institutes of Health.
(iv) The Office of the National Coordinator
for Health Information Technology.
(v) The Food and Drug Administration.
(vi) The Veterans Health Administration within
the Department of Veterans Affairs.
(vii) The office within the Department of
Defense responsible for management of the
Department of Defense Military Health Care System.
(B) Qualifications.--At least half of the members of
the Council shall be physicians or other experts with
clinical expertise.
(3) Chairman; vice chairman.--The Secretary shall serve as
Chairman of the Council and shall designate a member to serve as
Vice Chairman.
(e) Reports.--
(1) Initial report.--Not later than June 30, 2009, the
Council shall submit to the President and the Congress a report
containing information describing current Federal activities on
comparative effectiveness research and recommendations for such
research conducted or supported from funds made available for
allotment by the Secretary for comparative effectiveness
research in this Act.
(2) Annual report.--The Council shall submit to the
President and Congress an annual report regarding its activities
and recommendations concerning the infrastructure needs,
organizational expenditures and opportunities for better
coordination of comparative effectiveness research by relevant
Federal departments and agencies.
(f) Staffing; Support.--From funds made available for allotment by
the Secretary for comparative effectiveness research in this Act, the
Secretary shall make available not more than 1 percent to the Council
for staff and administrative support.
(g) Rules of Construction.--
(1) Coverage.--Nothing in this section shall be construed to
permit the Council to mandate coverage, reimbursement, or other
policies for any public or private payer.
(2) Reports and recommendations.--None of the reports
submitted under this section or recommendations made by the
Council shall be construed as mandates or clinical guidelines
for payment, coverage, or treatment.
[[Page 123 STAT. 189]]
Sec. 805. Grants for Impact Aid Construction. (a) Reservation for
Management and Oversight.--From the funds appropriated to carry out this
section, the Secretary may reserve up to 1 percent for management and
oversight of the activities carried out with those funds.
(b) Construction Payments.--
(1) Formula grants.--(A) in general.--From 40 percent of the
amount not reserved under subsection (a), the Secretary shall
make payments in accordance with section 8007(a) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7707(a)), except that the amount of such payments shall be
determined in accordance with subparagraph (B).
(B) Amount of payments.--The Secretary shall make a
payment to each local educational agency eligible for a
payment under section 8007(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7707(a)) in
an amount that bears the same relationship to the funds
made available under subparagraph (A) as the number of
children determined under subparagraphs (B), (C), and
(D)(i) of section 8003(a)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
7703(a)(1)(B), (C), and (D)(i)) who were in average
daily attendance in the local educational agency for the
most recent year for which such information is available
bears to the number of such children in all the local
educational agencies eligible for a payment under
section 8007(a) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7707(a)).
(2) Competitive grants.--From 60 percent of the amount not
reserved under subsection (a), the Secretary--
(A) shall award emergency grants in accordance with
section 8007(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7707(b)) to eligible
local educational agencies to enable the agencies to
carry out emergency repairs of school facilities; and
(B) may award modernization grants in accordance
with section 8007(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7707(b)) to eligible
local educational agencies to enable the agencies to
carry out the modernization of school facilities.
(3) Provisions not to apply.--Paragraphs (2), (3), (4),
(5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3),
(4), (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made
under paragraph (2).
(4) Eligibility.--A local educational agency is eligible to
receive a grant under paragraph (2) if the local educational
agency--
(A) was eligible to receive a payment under section
8002 or 8003 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7702 and 7703) for fiscal year
2008; and
(B) has--
(i) a total taxable assessed value of real
property that may be taxed for school purposes of
less than $100,000,000; or
(ii) an assessed value of real property per
student that may be taxed for school purposes that
is less
[[Page 123 STAT. 190]]
than the average of the assessed value of real
property per student that may be taxed for school
purposes in the State in which the local
educational agency is located.
(5) Criteria for grants.--In awarding grants under paragraph
(2), the Secretary shall consider the following criteria:
(A) Whether the facility poses a health or safety
threat to students and school personnel, including
noncompliance with building codes and inaccessibility
for persons with disabilities, or whether the existing
building capacity meets the needs of the current
enrollment and supports the provision of comprehensive
educational services to meet current standards in the
State in which the local educational agency is located.
(B) The extent to which the new design and proposed
construction utilize energy efficient and recyclable
materials.
(C) The extent to which the new design and proposed
construction utilizes non-traditional or alternative
building methods to expedite construction and project
completion and maximize cost efficiency.
(D) The feasibility of project completion within 24
months from award.
(E) The availability of other resources for the
proposed project.
Sec. 806. Mandatory Pell Grants. Section 401(b)(9)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended--
(1) in clause (ii), by striking ``$2,090,000,000'' and
inserting ``$2,733,000,000''; and
(2) in clause (iii), by striking ``$3,030,000,000'' and
inserting ``$3,861,000,000''.
Sec. 807. (a) In General.--Notwithstanding any other provision of
law, and in order to begin expenditures and activities under this Act as
quickly as possible consistent with prudent management, the Secretary of
Education may--
(1) award fiscal year 2009 funds to States and local
educational agencies on the basis of eligibility determinations
made for the award of fiscal year 2008 funds; and
(2) require States to make prompt allocations to local
educational agencies.
(b) Interest Not to Accrue.--Notwithstanding <<NOTE: Time
period.>> sections 3335 and 6503 of title 31, United States Code, or any
other provision of law, the United States shall not be liable to any
State or other entity for any interest or fee with respect to any funds
under this Act that are allocated by the Secretary of Education to the
State or other entity within 30 days of the date on which they are
available for obligation.
[[Page 123 STAT. 191]]
TITLE IX--LEGISLATIVE BRANCH
GOVERNMENT ACCOUNTABILITY OFFICE
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'' of the
Government Accountability Office, $25,000,000, to remain available until
September 30, 2010.
GENERAL PROVISIONS--THIS TITLE
Sec. 901. Government Accountability Office Reviews and Reports.
(a) Reviews and Reports.--
(1) In General.--The Comptroller General shall conduct
bimonthly reviews and prepare reports on such reviews on the use
by selected States and localities of funds made available in
this Act. <<NOTE: Internet posting.>> Such reports, along with
any audits conducted by the Comptroller General of such funds,
shall be posted on the Internet and linked to the website
established under this Act by the Recovery Accountability and
Transparency Board.
(2) Redactions.--Any portion of a report or audit under this
subsection may be redacted when made publicly available, if that
portion would disclose information that is not subject to
disclosure under section 552 of title 5, United States Code
(commonly known as the Freedom of Information Act).
(b) Examination of Records.--The Comptroller General may examine any
records related to obligations and use by any Federal, State, or local
government agency of funds made available in this Act.
Sec. 902. Access of Government Accountability Office. (a) Access.--
Each contract awarded using funds made available in this Act shall
provide that the Comptroller General and his representatives are
authorized--
(1) to examine any records of the contractor or any of its
subcontractors, or any State or local agency administering such
contract, that directly pertain to, and involve transactions
relating to, the contract or subcontract; and
(2) to interview any officer or employee of the contractor
or any of its subcontractors, or of any State or local
government agency administering the contract, regarding such
transactions.
(b) Relationship to Existing Authority.--Nothing in this section
shall be interpreted to limit or restrict in any way any existing
authority of the Comptroller General.
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS
DEPARTMENT OF DEFENSE
Military Construction, Army
For an additional amount for ``Military Construction, Army'',
$180,000,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design
[[Page 123 STAT. 192]]
and military construction projects in the United States not otherwise
authorized by law: Provided further, That of the amount provided under
this heading, $80,000,000 shall be for child development centers, and
$100,000,000 shall be for warrior transition complexes: Provided
further, <<NOTE: Deadline. Expenditure plan.>> That not later than 30
days after the date of enactment of this Act, the Secretary of Defense
shall submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this heading.
Military Construction, Navy and Marine Corps
For an additional amount for ``Military Construction, Navy and
Marine Corps'', $280,000,000, to remain available until September 30,
2013: Provided, That notwithstanding any other provision of law, such
funds may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, That of the amount provided under
this heading, $100,000,000 shall be for troop housing, $80,000,000 shall
be for child development centers, and $100,000,000 shall be for energy
conservation and alternative energy projects: Provided
further, <<NOTE: Deadline. Expenditure plan.>> That not later than 30
days after the date of enactment of this Act, the Secretary of Defense
shall submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this heading.
Military Construction, Air Force
For an additional amount for ``Military Construction, Air Force'',
$180,000,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and military
construction projects in the United States not otherwise authorized by
law: Provided further, That of the amount provided under this heading,
$100,000,000 shall be for troop housing and $80,000,000 shall be for
child development centers: <<NOTE: Deadline. Expenditure
plan.>> Provided further, That not later than 30 days after the date of
enactment of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of both Houses of Congress an expenditure
plan for funds provided under this heading.
Military Construction, Defense-Wide
For an additional amount for ``Military Construction, Defense-
Wide'', $1,450,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, That of the amount provided under
this heading, $1,330,000,000 shall be for the construction of hospitals
and $120,000,000 shall be for the Energy Conservation Investment
Program: Provided further, <<NOTE: Deadline. Expenditure plan.>> That
not later than 30 days after the date of enactment of this Act, the
Secretary of Defense shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds provided under
this heading.
[[Page 123 STAT. 193]]
Military Construction, Army National Guard
For an additional amount for ``Military Construction, Army National
Guard'', $50,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, <<NOTE: Deadline. Expenditure
plan.>> That not later than 30 days after the date of enactment of this
Act, the Secretary of Defense, in consultation with the Director of the
Army National Guard, shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds provided under
this heading.
Military Construction, Air National Guard
For an additional amount for ``Military Construction, Air National
Guard'', $50,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, <<NOTE: Deadline. Expenditure
plan.>> That not later than 30 days after the date of enactment of this
Act, the Secretary of Defense, in consultation with the Director of the
Air National Guard, shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds provided under
this heading.
Family Housing Construction, Army
For an additional amount for ``Family Housing Construction, Army'',
$34,507,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and military
construction projects in the United States not otherwise authorized by
law: Provided further, <<NOTE: Deadline. Expenditure plan.>> That within
30 days of enactment of this Act, the Secretary of Defense shall submit
to the Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this heading.
Family Housing Operation and Maintenance, Army
For an additional amount for ``Family Housing Operation and
Maintenance, Army'', $3,932,000: Provided, That notwithstanding any
other provision of law, such funds may be obligated and expended for
maintenance and repair and minor construction projects in the United
States not otherwise authorized by law.
Family Housing Construction, Air Force
For an additional amount for ``Family Housing Construction, Air
Force'', $80,100,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, <<NOTE: Deadline. Expenditure
plan.>> That within 30 days of enactment of this Act, the Secretary of
Defense shall submit to the Committees on Appropriations of both Houses
of
[[Page 123 STAT. 194]]
Congress an expenditure plan for funds provided under this heading.
Family Housing Operation and Maintenance, Air Force
For an additional amount for ``Family Housing Operation and
Maintenance, Air Force'', $16,461,000: Provided, That notwithstanding
any other provision of law, such funds may be obligated and expended for
maintenance and repair and minor construction projects in the United
States not otherwise authorized by law.
Homeowners Assistance Fund
For an additional amount for ``Homeowners Assistance Fund'',
established by section 1013 of the Demonstration Cities and Metropolitan
Development Act of 1966, as amended (42 U.S.C. 3374), $555,000,000, to
remain available until expended:
Provided, <<NOTE: Reports. Deadlines.>> That the Secretary of Defense
shall submit quarterly reports to the Committees on Appropriations of
both Houses of Congress on the expenditure of funds made available under
this heading in this or any other Act.
Administrative Provision
Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program
to Respond to Mortgage Foreclosure and Credit Crisis. Section 1013 of
the Demonstration Cities and Metropolitan Development Act of 1966 (42
U.S.C. 3374) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3) as
clauses (i), (ii), and (iii), respectively, and
indenting such subparagraphs, as so redesignated, 6 ems
from the left margin;
(B) by striking ``Notwithstanding any other
provision of law'' and inserting the following:
``(1) Acquisition of property at or near military
installations that have been ordered to be closed.--
Notwithstanding any other provision of law'';
(C) by striking ``if he determines'' and inserting
``if--
``(A) the Secretary determines--'';
(D) in clause (iii), as redesignated by subparagraph
(A), by striking the period at the end and inserting ``;
or''; and
(E) by adding at the end the following:
``(B) the Secretary determines--
``(i) that the conditions in clauses (i) and
(ii) of subparagraph (A) have been met;
``(ii) that the closing or realignment of the
base or installation resulted from a realignment
or closure carried out under the 2005 round of
defense base closure and realignment under the
Defense Base Closure and Realignment Act of 1990
(part XXIX of Public Law 101-510; 10 U.S.C. 2687
note);
``(iii) that the property was purchased by the
owner before July 1, 2006;
``(iv) that the property was sold by the owner
between July 1, 2006, and September 30, 2012, or
an earlier end date designated by the Secretary;
[[Page 123 STAT. 195]]
``(v) that the property is the primary
residence of the owner; and
``(vi) that the owner has not previously
received benefit payments authorized under this
subsection.
``(2) Homeowner assistance for wounded members of the armed
forces, department of defense and united states coast guard
civilian employees, and their spouses.--Notwithstanding any
other provision of law, the Secretary of Defense is authorized
to acquire title to, hold, manage, and dispose of, or, in lieu
thereof, to reimburse for certain losses upon private sale of,
or foreclosure against, any property improved with a one- or
two-family dwelling which was at the time of the relevant wound,
injury, or illness, the primary residence of--
``(A) any member of the Armed Forces in medical
transition who--
``(i) incurred a wound, injury, or illness in
the line of duty during a deployment in support of
the Armed Forces;
``(ii) is disabled to a degree of 30 percent
or more as a result of such wound, injury, or
illness, as determined by the Secretary of
Defense; and
``(iii) is reassigned in furtherance of
medical treatment or rehabilitation, or due to
medical retirement in connection with such
disability;
``(B) any civilian employee of the Department of
Defense or the United States Coast Guard who--
``(i) was wounded, injured, or became ill in
the performance of his or her duties during a
forward deployment occurring on or after September
11, 2001, in support of the Armed Forces; and
``(ii) is reassigned in furtherance of medical
treatment, rehabilitation, or due to medical
retirement resulting from the sustained
disability; or
``(C) the spouse of a member of the Armed Forces or
a civilian employee of the Department of Defense or the
United States Coast Guard if--
``(i) the member or employee was killed in the
line of duty or in the performance of his or her
duties during a deployment on or after September
11, 2001, in support of the Armed Forces or died
from a wound, injury, or illness incurred in the
line of duty during such a deployment; and
``(ii) the spouse relocates from such
residence within 2 years after the death of such
member or employee.
``(3) Temporary homeowner assistance for members of the
armed forces permanently reassigned during specified mortgage
crisis.--Notwithstanding any other provision of law, the
Secretary of Defense is authorized to acquire title to, hold,
manage, and dispose of, or, in lieu thereof, to reimburse for
certain losses upon private sale of, or foreclosure against, any
property improved with a one- or two-family dwelling situated at
or near a military base or installation, if the Secretary
determines--
``(A) that the owner is a member of the Armed Forces
serving on permanent assignment;
[[Page 123 STAT. 196]]
``(B) that the owner is permanently reassigned by
order of the United States Government to a duty station
or home port outside a 50-mile radius of the base or
installation;
``(C) that the reassignment was ordered between
February 1, 2006, and September 30, 2012, or an earlier
end date designated by the Secretary;
``(D) that the property was purchased by the owner
before July 1, 2006;
``(E) that the property was sold by the owner
between July 1, 2006, and September 30, 2012, or an
earlier end date designated by the Secretary;
``(F) that the property is the primary residence of
the owner; and
``(G) that the owner has not previously received
benefit payments authorized under this subsection.'';
(2) in subsection (b), by striking ``this section'' each
place it appears and inserting ``subsection (a)(1)'';
(3) in subsection (c)--
(A) by striking ``Such persons'' and inserting the
following:
``(1) Homeowner assistance related to closed military
installations.--
``(A) In general.--Such persons'';
(B) by striking ``set forth above shall elect either
(1) to receive'' and inserting the following: ``set
forth in subsection (a)(1) shall elect either--
``(i) to receive'';
(C) by striking ``difference between (A) 95 per
centum'' and all that follows through ``(B) the fair
market value'' and inserting the following: ``difference
between--
``(I) 95 per centum of the fair
market value of their property (as such
value is determined by the Secretary of
Defense) prior to public announcement of
intention to close all or part of the
military base or installation; and
``(II) the fair market value'';
(D) by striking ``time of the sale, or (2) to
receive'' and inserting the following: ``time of the
sale; or
``(ii) to receive'';
(E) by striking ``outstanding mortgages. The
Secretary may also pay a person who elects to receive a
cash payment under clause (1) of the preceding sentence
an amount'' and inserting ``outstanding mortgages.
``(B) Reimbursement of expenses.--The Secretary may
also pay a person who elects to receive a cash payment
under subparagraph (A) an amount''; and
(F) by striking ``best interest of the Federal
Government. Cash payment'' and inserting the following:
``best interest of the United States.
``(2) Homeowner assistance for wounded individuals and their
spouses.--
``(A) In general.--Persons eligible under the
criteria set forth in subsection (a)(2) may elect
either--
``(i) to receive a cash payment as
compensation for losses which may be or have been
sustained in
[[Page 123 STAT. 197]]
a private sale, in an amount not to exceed the
difference between--
``(I) 95 per centum of prior fair
market value of their property (as such
value is determined by the Secretary of
Defense); and
``(II) the fair market value of such
property (as such value is determined by
the Secretary of Defense) at the time of
sale; or
``(ii) to receive, as purchase price for their
property an amount not to exceed 90 per centum of
prior fair market value as such value is
determined by the Secretary of Defense, or the
amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may
also pay a person who elects to receive a cash payment
under subparagraph (A) an amount that the Secretary
determines appropriate to reimburse the person for the
costs incurred by the person in the sale of the property
if the Secretary determines that such payment will
benefit the person and is in the best interest of the
United States.
``(3) Homeowner assistance for permanently reassigned
individuals.--
``(A) In general.--Persons eligible under the
criteria set forth in subsection (a)(3) may elect
either--
``(i) to receive a cash payment as
compensation for losses which may be or have been
sustained in a private sale, in an amount not to
exceed the difference between--
``(I) 95 per centum of prior fair
market value of their property (as such
value is determined by the Secretary of
Defense); and
``(II) the fair market value of such
property (as such value is determined by
the Secretary of Defense) at the time of
sale; or
``(ii) to receive, as purchase price for their
property an amount not to exceed 90 per centum of
prior fair market value as such value is
determined by the Secretary of Defense, or the
amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may
also pay a person who elects to receive a cash payment
under subparagraph (A) an amount that the Secretary
determines appropriate to reimburse the person for the
costs incurred by the person in the sale of the property
if the Secretary determines that such payment will
benefit the person and is in the best interest of the
United States.
``(4) Compensation and limitations related to foreclosures
and encumbrances.--Cash payment'';
(4) by striking subsection (g);
(5) in subsection (l), by striking ``(a)(2)'' and inserting
``(a)(1)(A)(ii)'';
(6) in subsection (m), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(7) in subsection (n)--
(A) in paragraph (1), by striking ``this section''
and inserting ``subsection (a)(1)''; and
[[Page 123 STAT. 198]]
(B) in paragraph (2), by striking ``this section''
and inserting ``subsection (a)(1)'';
(8) in subsection (o)--
(A) in paragraph (1), by striking ``this section''
and inserting ``subsection (a)(1)'';
(B) in paragraph (2), by striking ``this section''
and inserting ``subsection (a)(1)''; and
(C) by striking paragraph (4); and
(9) by adding at the end the following new subsection:
``(p) Definitions.--In this section:
``(1) the term `Armed Forces' has the meaning given the term
`armed forces' in section 101(a) of title 10, United States
Code;
``(2) the term `civilian employee' has the meaning given the
term `employee' in section 2105(a) of title 5, United States
Code;
``(3) the term `medical transition', in the case of a member
of the Armed Forces, means a member who--
``(A) is in Medical Holdover status;
``(B) is in Active Duty Medical Extension status;
``(C) is in Medical Hold status;
``(D) is in a status pending an evaluation by a
medical evaluation board;
``(E) has a complex medical need requiring six or
more months of medical treatment; or
``(F) is assigned or attached to an Army Warrior
Transition Unit, an Air Force Patient Squadron, a Navy
Patient Multidisciplinary Care Team, or a Marine Patient
Affairs Team/Wounded Warrior Regiment; and
``(4) the term `nonappropriated fund instrumentality
employee' means a civilian employee who--
``(A) is a citizen of the United States; and
``(B) is paid from nonappropriated funds of Army and
Air Force Exchange Service, Navy Resale and Services
Support Office, Marine Corps exchanges, or any other
instrumentality of the United States under the
jurisdiction of the Armed Forces which is conducted for
the comfort, pleasure, contentment, or physical or
mental improvement of members of the Armed Forces.''.
(b) Clerical Amendment.--Such section is further amended in the
section heading by inserting ``and certain property owned by members of
the Armed Forces, Department of Defense and United States Coast Guard
civilian employees, and surviving spouses'' after ``ordered to be
closed''.
(c) Authority to Use Appropriated Funds.--Notwithstanding subsection
(i) of such section, amounts appropriated or otherwise made available by
this title under the heading ``Homeowners Assistance Fund'' may be used
for the Homeowners Assistance Fund established under such section.
[[Page 123 STAT. 199]]
DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
medical facilities
For an additional amount for ``Medical Facilities'' for non-
recurring maintenance, including energy projects, $1,000,000,000, to
remain available until September 30, 2010: Provided,
That <<NOTE: Deadline. Expenditure plan.>> not later than 30 days after
the date of enactment of this Act, the Secretary of Veterans Affairs
shall submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this heading.
National Cemetery Administration
For an additional amount for ``National Cemetery Administration''
for monument and memorial repairs, including energy projects,
$50,000,000, to remain available until
September <<NOTE: Deadline. Expenditure plan.>> 30, 2010: Provided, That
not later than 30 days after the date of enactment of this Act, the
Secretary of Veterans Affairs shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan for funds
provided under this heading.
Departmental Administration
general operating expenses
For an additional amount for ``General Operating Expenses'',
$150,000,000, to remain available until September 30, 2010, for
additional expenses related to hiring and training temporary surge
claims processors.
information technology systems
For an additional amount for ``Information Technology Systems'',
$50,000,000, to remain available until September 30, 2010, for the
Veterans Benefits Administration: Provided,
That <<NOTE: Deadline. Expenditure plan.>> not later than 30 days after
the enactment of this Act, the Secretary of Veterans Affairs shall
submit to the Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this heading.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$1,000,000, to remain available until September 30, 2011, for oversight
and audit of programs, grants and projects funded under this title.
grants for construction of state extended care facilities
For an additional amount for ``Grants for Construction of State
Extended Care Facilities'', $150,000,000, to remain available until
September 30, 2010, for grants to assist States to acquire or construct
State nursing home and domiciliary facilities and to remodel, modify, or
alter existing hospital, nursing home, and domiciliary facilities in
State homes, for furnishing care to veterans as authorized by sections
8131 through 8137 of title 38, United States Code.
[[Page 123 STAT. 200]]
Administrative Provision
Sec. 1002. <<NOTE: 38 USC 107 note.>> Payments to Eligible Persons
Who Served in the United States Armed Forces in the Far East During
World War II. (a) Findings.--Congress makes the following findings:
(1) The Philippine islands became a United States possession
in 1898 when they were ceded from Spain following the Spanish-
American War.
(2) During World War II, Filipinos served in a variety of
units, some of which came under the direct control of the United
States Armed Forces.
(3) The regular Philippine Scouts, the new Philippine
Scouts, the Guerrilla Services, and more than 100,000 members of
the Philippine Commonwealth Army were called into the service of
the United States Armed Forces of the Far East on July 26, 1941,
by an executive order of President Franklin D. Roosevelt.
(4) Even after hostilities had ceased, wartime service of
the new Philippine Scouts continued as a matter of law until the
end of 1946, and the force gradually disbanded and was
disestablished in 1950.
(5) Filipino veterans who were granted benefits prior to the
enactment of the so-called Rescissions Acts of 1946 (Public Laws
79-301 and 79-391) currently receive full benefits under laws
administered by the Secretary of Veterans Affairs, but under
section 107 of title 38, United States Code, the service of
certain other Filipino veterans is deemed not to be active
service for purposes of such laws.
(6) These other Filipino veterans only receive certain
benefits under title 38, United States Code, and, depending on
where they legally reside, are paid such benefit amounts at
reduced rates.
(7) The benefits such veterans receive include service-
connected compensation benefits paid under chapter 11 of title
38, United States Code, dependency indemnity compensation
survivor benefits paid under chapter 13 of title 38, United
States Code, and burial benefits under chapters 23 and 24 of
title 38, United States Code, and such benefits are paid to
beneficiaries at the rate of $0.50 per dollar authorized, unless
they lawfully reside in the United States.
(8) Dependents' educational assistance under chapter 35 of
title 38, United States Code, is also payable for the dependents
of such veterans at the rate of $0.50 per dollar authorized,
regardless of the veterans' residency.
(b) Compensation Fund.--
(1) In General.--There is in the general fund of the
Treasury a fund to be known as the ``Filipino Veterans Equity
Compensation Fund'' (in this section referred to as the
``compensation fund'').
(2) Availability of Funds.--Subject to the availability of
appropriations for such purpose, amounts in the fund shall be
available to the Secretary of Veterans Affairs without fiscal
year limitation to make payments to eligible persons in
accordance with this section.
(c) Payments.--
[[Page 123 STAT. 201]]
(1) In General.--The Secretary may make a payment from the
compensation fund to an eligible person who, during the one-year
period beginning on the date of the enactment of this Act,
submits to the Secretary a claim for benefits under this
section. The application for the claim shall contain such
information and evidence as the Secretary may require.
(2) Payment to Surviving Spouse.--If an eligible person who
has filed a claim for benefits under this section dies before
payment is made under this section, the payment under this
section shall be made instead to the surviving spouse, if any,
of the eligible person.
(d) Eligible Persons.--An eligible person is any person who--
(1) served--
(A) before July 1, 1946, in the organized military
forces of the Government of the Commonwealth of the
Philippines, while such forces were in the service of
the Armed Forces of the United States pursuant to the
military order of the President dated July 26, 1941,
including among such military forces organized guerrilla
forces under commanders appointed, designated, or
subsequently recognized by the Commander in Chief,
Southwest Pacific Area, or other competent authority in
the Army of the United States; or
(B) in the Philippine Scouts under section 14 of the
Armed Forces Voluntary Recruitment Act of 1945 (59 Stat.
538); and
(2) was discharged or released from service described in
paragraph (1) under conditions other than dishonorable.
(e) Payment Amounts.--Each payment under this section shall be--
(1) in the case of an eligible person who is not a citizen
of the United States, in the amount of $9,000; and
(2) in the case of an eligible person who is a citizen of
the United States, in the amount of $15,000.
(f) Limitation.--The Secretary may not make more than one payment
under this section for each eligible person described in subsection (d).
(g) Clarification of Treatment of Payments Under Certain Laws.--
Amounts paid to a person under this section--
(1) shall be treated for purposes of the internal revenue
laws of the United States as damages for human suffering; and
(2) shall not be included in income or resources for
purposes of determining--
(A) eligibility of an individual to receive benefits
described in section 3803(c)(2)(C) of title 31, United
States Code, or the amount of such benefits;
(B) eligibility of an individual to receive benefits
under title VIII of the Social Security Act, or the
amount of such benefits; or
(C) eligibility of an individual for, or the amount
of benefits under, any other Federal or federally
assisted program.
(h) Release.--
(1) In General.--Except as provided in paragraph (2), the
acceptance by an eligible person or surviving spouse, as
applicable, of a payment under this section shall be final,
[[Page 123 STAT. 202]]
and shall constitute a complete release of any claim against the
United States by reason of any service described in subsection
(d).
(2) Payment of Prior Eligibility Status.--Nothing in this
section shall prohibit a person from receiving any benefit
(including health care, survivor, or burial benefits) which the
person would have been eligible to receive based on laws in
effect as of the day before the date of the enactment of this
Act.
(i) Recognition of Service.--The service of a person as described in
subsection (d) is hereby recognized as active military service in the
Armed Forces for purposes of, and to the extent provided in, this
section.
(j) Administration.--
(1) <<NOTE: Applications. Instructions.>> The Secretary
shall promptly issue application forms and instructions to
ensure the prompt and efficient administration of the provisions
of this section.
(2) The Secretary shall administer the provisions of this
section in a manner consistent with applicable provisions of
title 38, United States Code, and other provisions of law, and
shall apply the definitions in section 101 of such title in the
administration of such provisions, except to the extent
otherwise provided in this section.
(k) Reports.--The Secretary shall include, in documents submitted to
Congress by the Secretary in support of the President's budget for each
fiscal year, detailed information on the operation of the compensation
fund, including the number of applicants, the number of eligible persons
receiving benefits, the amounts paid out of the compensation fund, and
the administration of the compensation fund for the most recent fiscal
year for which such data is available.
(l) Authorization of Appropriation.--There is authorized to be
appropriated to the compensation fund $198,000,000, to remain available
until expended, to make payments under this section.
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
DEPARTMENT OF STATE
Administration of Foreign Affairs
diplomatic and consular programs
For an additional amount for ``Diplomatic and Consular Programs''
for urgent domestic facilities requirements for passport and training
functions, $90,000,000: <<NOTE: Deadline. Spending plan.>> Provided,
That the Secretary of State shall submit to the Committees on
Appropriations within 90 days of enactment of this Act a detailed
spending plan for funds appropriated under this heading: Provided
further, That with respect to the funds made available for passport
agencies, such plan shall be developed in consultation with the
Department of Homeland Security and the General Services Administration
and shall coordinate and co-locate, to the extent feasible, passport
agencies with other Federal facilities.
[[Page 123 STAT. 203]]
capital investment fund
(including transfer of funds)
For an additional amount for ``Capital Investment Fund'',
$290,000,000, for information technology security and upgrades to
support mission-critical operations, of which up to $38,000,000 shall be
transferred to, and merged with, funds made available under the heading
``Capital Investment Fund'' of the United States Agency for
International Development: <<NOTE: Deadline. Spending plan.>> Provided,
That the Secretary of State and the Administrator of the United States
Agency for International Development shall coordinate information
technology systems, where appropriate, to increase efficiencies and
eliminate redundancies, to include co-location of backup information
management facilities, and shall submit to the Committees on
Appropriations within 90 days of enactment of this Act a detailed
spending plan for funds appropriated under this heading.
office of inspector general
For an additional amount for ``Office of Inspector General'' for
oversight requirements, $2,000,000.
International Commissions
International Boundary and Water Commission, United States and Mexico
construction
(including transfer of funds)
For an additional amount for ``Construction'' for the water quantity
program to meet immediate repair and rehabilitation requirements,
$220,000,000: Provided, That up to $2,000,000 may be transferred to, and
merged with, funds available under the heading ``International Boundary
and Water Commission, United States and Mexico--Salaries and
Expenses'': <<NOTE: Deadline. Spending plan.>> Provided further, That
the Secretary of State shall submit to the Committees on Appropriations
within 90 days of enactment of this Act a detailed spending plan for
funds appropriated under this heading.
TITLE XII--TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND RELATED
AGENCIES
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
supplemental discretionary grants for a national surface transportation
system
For an additional amount for capital investments in surface
transportation infrastructure, $1,500,000,000, to remain available
through September 30, 2011: Provided, That the Secretary of
Transportation shall distribute funds provided under this heading as
discretionary grants to be awarded to State and local governments or
transit agencies on a competitive basis for projects that will have a
significant impact on the Nation, a metropolitan area,
[[Page 123 STAT. 204]]
or a region: Provided further, That projects eligible for funding
provided under this heading shall include, but not be limited to,
highway or bridge projects eligible under title 23, United States Code,
including interstate rehabilitation, improvements to the rural collector
road system, the reconstruction of overpasses and interchanges, bridge
replacements, seismic retrofit projects for bridges, and road
realignments; public transportation projects eligible under chapter 53
of title 49, United States Code, including investments in projects
participating in the New Starts or Small Starts programs that will
expedite the completion of those projects and their entry into revenue
service; passenger and freight rail transportation projects; and port
infrastructure investments, including projects that connect ports to
other modes of transportation and improve the efficiency of freight
movement: Provided further, That of the amount made available under this
paragraph, the Secretary may use an amount not to exceed $200,000,000
for the purpose of paying the subsidy and administrative costs of
projects eligible for federal credit assistance under chapter 6 of title
23, United States Code, if the Secretary finds that such use of the
funds would advance the purposes of this paragraph: Provided further,
That in distributing funds provided under this heading, the Secretary
shall take such measures so as to ensure an equitable geographic
distribution of funds and an appropriate balance in addressing the needs
of urban and rural communities: Provided further, That a grant funded
under this heading shall be not less than $20,000,000 and not greater
than $300,000,000: <<NOTE: Waiver authority.>> Provided further, That
the Secretary may waive the minimum grant size cited in the preceding
proviso for the purpose of funding significant projects in smaller
cities, regions, or States: Provided further, That not more than 20
percent of the funds made available under this paragraph may be awarded
to projects in a single State: Provided further, That the Federal share
of the costs for which an expenditure is made under this heading may be
up to 100 percent: Provided further, That the Secretary shall give
priority to projects that require a contribution of Federal funds in
order to complete an overall financing package, and to projects that are
expected to be completed within 3 years of enactment of this Act:
Provided further, That <<NOTE: Publication. Criteria. Deadline.>> the
Secretary shall publish criteria on which to base the competition for
any grants awarded under this heading not later than 90 days after
enactment of this Act: <<NOTE: Applications. Deadlines.>> Provided
further, That the Secretary shall require applications for funding
provided under this heading to be submitted not later than 180 days
after the publication of such criteria, and announce all projects
selected to be funded from such funds not later than 1 year after
enactment of this Act: Provided further, That projects conducted using
funds provided under this heading must comply with the requirements of
subchapter IV of chapter 31 of title 40, United States Code: Provided
further, That the Secretary may retain up to $1,500,000 of the funds
provided under this heading, and may transfer portions of those funds to
the Administrators of the Federal Highway Administration, the Federal
Transit Administration, the Federal Railroad Administration and the
Maritime Administration, to fund the award and oversight of grants made
under this heading.
[[Page 123 STAT. 205]]
Federal Aviation Administration
supplemental funding for facilities and equipment
For an additional amount for necessary investments in Federal
Aviation Administration infrastructure, $200,000,000, to remain
available through September 30, 2010: Provided, That funding provided
under this heading shall be used to make improvements to power systems,
air route traffic control centers, air traffic control towers, terminal
radar approach control facilities, and navigation and landing equipment:
Provided further, That priority be given to such projects or activities
that will be completed within 2 years of enactment of this Act: Provided
further, That amounts made available under this heading may be provided
through grants in addition to the other instruments authorized under
section 106(l)(6) of title 49, United States Code: Provided further,
That the Federal share of the costs for which an expenditure is made
under this heading shall be 100 percent: Provided further, That amounts
provided under this heading may be used for expenses the agency incurs
in administering this <<NOTE: Deadline. Procedures.>> program: Provided
further, That not more than 60 days after enactment of this Act, the
Administrator shall establish a process for applying, reviewing and
awarding grants and cooperative and other transaction agreements,
including the form and content of an application, and requirements for
the maintenance of records that are necessary to facilitate an effective
audit of the use of the funding
provided: <<NOTE: Applicability.>> Provided further, That section 50101
of title 49, United States Code, shall apply to funds provided under
this heading.
Grants-In-Aid for Airports
For an additional amount for ``Grants-In-Aid for Airports'', to
enable the Secretary of Transportation to make grants for discretionary
projects as authorized by subchapter 1 of chapter 471 and subchapter 1
of chapter 475 of title 49, United States Code, and for the procurement,
installation and commissioning of runway incursion prevention devices
and systems at airports of such title, $1,100,000,000, to remain
available through September 30, 2010: Provided, That such funds shall
not be subject to apportionment formulas, special apportionment
categories, or minimum percentages under chapter 471: Provided further,
That the Secretary shall distribute funds provided under this heading as
discretionary grants to airports, with priority given to those projects
that demonstrate to his satisfaction their ability to be completed
within 2 years of enactment of this Act, and serve to supplement and not
supplant planned expenditures from airport-generated revenues or from
other State and local sources on such <<NOTE: Deadlines.>> activities:
Provided further, That the Secretary shall award grants totaling not
less than 50 percent of the funds made available under this heading
within 120 days of enactment of this Act, and award grants for the
remaining amounts not later than 1 year after enactment of this Act:
Provided further, That the Federal share payable of the costs for which
a grant is made under this heading shall be 100 percent: Provided
further, That the amount made available under this heading shall not be
subject to any limitation on obligations for the Grants-in-Aid for
Airports program set forth in any Act: Provided further, That the
Administrator of the Federal Aviation Administration may retain up to
0.2 percent of the funds provided under this
[[Page 123 STAT. 206]]
heading to fund the award and oversight by the Administrator of grants
made under this heading.
Federal Highway Administration
highway infrastructure investment
For an additional amount for restoration, repair, construction and
other activities eligible under paragraph (b) of section 133 of title
23, United States Code, and for passenger and freight rail
transportation and port infrastructure projects eligible for assistance
under subsection 601(a)(8) of such title, $27,500,000,000, to remain
available through September 30, 2010: Provided, That, after making the
set-asides required under this heading, 50 percent of the funds made
available under this heading shall be apportioned to States using the
formula set forth in section 104(b)(3) of title 23, United States Code,
and the remaining funds shall be apportioned to States in the same ratio
as the obligation limitation for fiscal year 2008 was distributed among
the States in accordance with the formula specified in section 120(a)(6)
of division K of Public Law 110-161: <<NOTE: Deadline.>> Provided
further, That funds made available under this heading shall be
apportioned not later than 21 days after the date of enactment of this
Act: Provided further, That in selecting projects to be carried out with
funds apportioned under this heading, priority shall be given to
projects that are projected for completion within a 3-year time frame,
and are located in economically distressed areas as defined by section
301 of the Public Works and Economic Development Act of 1965, as amended
(42 U.S.C. 3161): Provided further, <<NOTE: Effective date.>> That 120
days following the date of such apportionment, the Secretary of
Transportation shall withdraw from each State an amount equal to 50
percent of the funds awarded to that State (excluding funds suballocated
within the State) less the amount of funding obligated (excluding funds
suballocated within the State), and the Secretary shall redistribute
such amounts to other States that have had no funds withdrawn under this
proviso in the manner described in section 120(c) of division K of
Public Law 110-161: Provided further, <<NOTE: Effective date.>> That 1
year following the date of such apportionment, the Secretary shall
withdraw from each recipient of funds apportioned under this heading any
unobligated funds, and the Secretary shall redistribute such amounts to
States that have had no funds withdrawn under this proviso (excluding
funds suballocated within the State) in the manner described in section
120(c) of division K of Public Law 110-161: Provided further, That at
the request of a State, the Secretary of Transportation may provide an
extension of such 1-year period only to the extent that he feels
satisfied that the State has encountered extreme conditions that create
an unworkable bidding environment or other
extenuating <<NOTE: Submission.>> circumstances: Provided further, That
before granting such an extension, the Secretary shall send a letter to
the House and Senate Committees on Appropriations that provides a
thorough justification for the extension: Provided further, That 3
percent of the funds apportioned to a State under this heading shall be
set aside for the purposes described in subsection 133(d)(2) of title
23, United States Code (without regard to the comparison to fiscal year
2005): Provided further, That 30 percent of the funds apportioned to a
State under this heading shall be suballocated within the State in the
manner and for the purposes described in the first sentence of
subsection
[[Page 123 STAT. 207]]
133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection
133(d)(3)(D): Provided further, That such suballocation shall be
conducted in every State: Provided further, That funds suballocated
within a State to urbanized areas and other areas shall not be subject
to the redistribution of amounts required 120 days following the date of
apportionment of funds provided under this heading: Provided further,
That of the funds provided under this heading, $105,000,000 shall be for
the Puerto Rico highway program authorized under section 165 of title
23, United States Code, and $45,000,000 shall be for the territorial
highway program authorized under section 215 of title 23, United States
Code: Provided further, That of the funds provided under this heading,
$60,000,000 shall be for capital expenditures eligible under section 147
of title 23, United States Code (without regard to
subsection(d)): <<NOTE: Grants.>> Provided further, That the Secretary
of Transportation shall distribute such $60,000,000 as competitive
discretionary grants to States, with priority given to those projects
that demonstrate to his satisfaction their ability to be completed
within 2 years of enactment of this Act: Provided further, That of the
funds provided under this heading, $550,000,000 shall be for investments
in transportation at Indian reservations and Federal lands: Provided
further, That of the funds identified in the preceding proviso,
$310,000,000 shall be for the Indian Reservation Roads program,
$170,000,000 shall be for the Park Roads and Parkways program,
$60,000,000 shall be for the Forest Highway Program, and $10,000,000
shall be for the Refuge Roads program: Provided further, That for
investments at Indian reservations and Federal lands, priority shall be
given to capital investments, and to projects and activities that can be
completed within 2 years of enactment of this Act: <<NOTE: Effective
date. Redistribution authority.>> Provided further, That 1 year
following the enactment of this Act, to ensure the prompt use of the
$550,000,000 provided for investments at Indian reservations and Federal
lands, the Secretary shall have the authority to redistribute
unobligated funds within the respective program for which the funds were
appropriated: Provided further, That up to 4 percent of the funding
provided for Indian Reservation Roads may be used by the Secretary of
the Interior for program management and oversight and project-related
administrative expenses: Provided further, That section
134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply to
funds provided under this heading: Provided further, That of the funds
made available under this heading, $20,000,000 shall be for highway
surface transportation and technology training under section 140(b) of
title 23, United States Code, and $20,000,000 shall be for disadvantaged
business enterprises bonding assistance under section 332(e) of title
49, United States Code: Provided further, That funds made available
under this heading shall be administered as if apportioned under chapter
1 of title 23, United States Code, except for funds made available for
investments in transportation at Indian reservations and Federal lands,
and for the territorial highway program, which shall be administered in
accordance with chapter 2 of title 23, United States Code, and except
for funds made available for disadvantaged business enterprises bonding
assistance, which shall be administered in accordance with chapter 3 of
title 49, United States Code: Provided further, That the Federal share
payable on account of any project or activity carried out with funds
made available under this heading shall be, at the option of the
recipient, up to 100 percent of the total cost thereof: Provided
further, That
[[Page 123 STAT. 208]]
funds made available by this Act shall not be obligated for the purposes
authorized under section 115(b) of title 23, United States Code:
Provided further, That funding provided under this heading shall be in
addition to any and all funds provided for fiscal years 2009 and 2010 in
any other Act for ``Federal-aid Highways'' and shall not affect the
distribution of funds provided for ``Federal-aid Highways'' in any other
Act: Provided further, That the amount made available under this heading
shall not be subject to any limitation on obligations for Federal-aid
highways or highway safety construction programs set forth in any
Act: <<NOTE: Applicability.>> Provided further, That section 1101(b) of
Public Law 109-59 shall apply to funds apportioned under this heading:
Provided further, That the Administrator of the Federal Highway
Administration may retain up to $40,000,000 of the funds provided under
this heading to fund the oversight by the Administrator of projects and
activities carried out with funds made available to the Federal Highway
Administration in this Act, and such funds shall be available through
September 30, 2012.
Federal Railroad Administration
Capital Assistance for High Speed Rail Corridors <<NOTE: Grants.>> and
Intercity Passenger Rail Service
For an additional amount for section 501 of Public Law 110-432 and
discretionary grants to States to pay for the cost of projects described
in paragraphs (2)(A) and (2)(B) of section 24401 of title 49, United
States Code, subsection (b) of section 24105 of such title,
$8,000,000,000, to remain available through September 30, 2012:
Provided, That the Secretary of Transportation shall give priority to
projects that support the development of intercity high speed rail
service: <<NOTE: Deadline. Strategic plan.>> Provided further, That
within 60 days of the enactment of this Act, the Secretary shall submit
to the House and Senate Committees on Appropriations a strategic plan
that describes how the Secretary will use the funding provided under
this heading to improve and deploy high speed passenger rail
systems: <<NOTE: Deadline. Guidance.>> Provided further, That within 120
days of enactment of this Act, the Secretary shall issue interim
guidance to applicants covering grant terms, conditions, and procedures
until final regulations are issued: Provided further, That such interim
guidance shall provide separate instructions for the high speed rail
corridor program, capital assistance for intercity passenger rail
service grants, and congestion grants: <<NOTE: Waiver
authority.>> Provided further, That the Secretary shall waive the
requirement that a project conducted using funds provided under this
heading be in a State rail plan developed under chapter 227 of title 49,
United States Code: Provided further, That the Federal share payable of
the costs for which a grant is made under this heading shall be, at the
option of the recipient, up to 100
percent: <<NOTE: Compliance.>> 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: <<NOTE: Applicability.>> Provided further, That section 24405 of
title 49, United States Code, shall apply to funds provided under this
heading: Provided further, That the Administrator of the Federal
Railroad Administration may retain up to one-quarter of 1 percent of the
funds provided under this heading to fund the award and oversight by the
Administrator of grants made under this heading, and funds retained for
said purposes shall remain available through September 30, 2014.
[[Page 123 STAT. 209]]
capital grants to the national railroad passenger corporation
For an additional amount for the National Railroad Passenger
Corporation (Amtrak) to enable the Secretary of Transportation to make
capital grants to Amtrak as authorized by section 101(c) of the
Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-
432), $1,300,000,000, to remain available through September 30, 2010, of
which $450,000,000 shall be used for capital security grants: Provided,
That priority for the use of non-security funds shall be given to
projects for the repair, rehabilitation, or upgrade of railroad assets
or infrastructure, and for capital projects that expand passenger rail
capacity including the rehabilitation of rolling stock: Provided
further, That none of the funds under this heading shall be used to
subsidize the operating losses of Amtrak: Provided
further, <<NOTE: Deadline.>> That funds provided under this heading
shall be awarded not later than 30 days after the date of enactment of
this Act: Provided further, <<NOTE: Deadline.>> That the Secretary shall
take measures to ensure that projects funded under this heading shall be
completed within 2 years of enactment of this Act, and shall serve to
supplement and not supplant planned expenditures for such activities
from other Federal, State, local and corporate
sources: <<NOTE: Certification.>> Provided further, That the Secretary
shall certify to the House and Senate Committees on Appropriations in
writing compliance with the preceding proviso: Provided further, That
not more than 60 percent of the funds provided for non-security
activities under this heading may be used for capital projects along the
Northeast Corridor: Provided further, That of the funding provided under
this heading, $5,000,000 shall be made available for the Amtrak Office
of Inspector General and made available through September 30, 2013.
Federal Transit Administration
transit capital <<NOTE: Grants.>> assistance
For an additional amount for transit capital assistance grants
authorized under section 5302(a)(1) of title 49, United States Code,
$6,900,000,000, to remain available through September 30, 2010:
Provided, That the Secretary of Transportation shall provide 80 percent
of the funds appropriated under this heading for grants under section
5307 of title 49, United States Code, and apportion such funds in
accordance with section 5336 of such title (other than subsections
(i)(1) and (j)): Provided further, That the Secretary shall apportion 10
percent of the funds appropriated under this heading in accordance with
section 5340 of such title: Provided further, That the Secretary shall
provide 10 percent of the funds appropriated under this heading for
grants under section 5311 of title 49, United States Code, and apportion
such funds in accordance with such section: <<NOTE: Deadline.>> Provided
further, That funds apportioned under this heading shall be apportioned
not later than 21 days after the date of enactment of this Act: Provided
further, <<NOTE: Effective date.>> That 180 days following the date of
such apportionment, the Secretary shall withdraw from each urbanized
area or State an amount equal to 50 percent of the funds apportioned to
such urbanized areas or States less the amount of funding obligated, and
the Secretary shall redistribute such amounts to other urbanized areas
or States that have had no funds withdrawn under this proviso utilizing
whatever method he deems appropriate to ensure that all funds
[[Page 123 STAT. 210]]
redistributed under this proviso shall be utilized
promptly: <<NOTE: Effective date.>> Provided further, That 1 year
following the date of such apportionment, the Secretary shall withdraw
from each urbanized area or State any unobligated funds, and the
Secretary shall redistribute such amounts to other urbanized areas or
States that have had no funds withdrawn under this proviso utilizing
whatever method he deems appropriate to ensure that all funds
redistributed under this proviso shall be utilized promptly: Provided
further, That at the request of an urbanized area or State, the
Secretary of Transportation may provide an extension of such 1-year
period if he feels satisfied that the urbanized area or State has
encountered an unworkable bidding environment or other extenuating
circumstances: <<NOTE: Submission.>> Provided further, That before
granting such an extension, the Secretary shall send a letter to the
House and Senate Committees on Appropriations that provides a thorough
justification for the extension: Provided further, That of the funds
provided for section 5311 of title 49, United States Code, 2.5 percent
shall be made available for section 5311(c)(1): Provided further, That
of the funding provided under this heading, $100,000,000 shall be
distributed as discretionary grants to public transit agencies for
capital investments that will assist in reducing the energy consumption
or greenhouse gas emissions of their public transportation systems:
Provided further, That for such grants on energy-related investments,
priority shall be given to projects based on the total energy savings
that are projected to result from the investment, and projected energy
savings as a percentage of the total energy usage of the public transit
agency: <<NOTE: Applicability.>> Provided further, That applicable
chapter 53 requirements shall apply to funding provided under this
heading, except that the Federal share of the costs for which any grant
is made under this heading shall be, at the option of the recipient, up
to 100 percent: Provided further, That the amount made available under
this heading shall not be subject to any limitation on obligations for
transit programs set forth in any Act: <<NOTE: Applicability.>> Provided
further, That section 1101(b) of Public Law 109-59 shall apply to funds
appropriated under this heading: Provided further, That the funds
appropriated under this heading shall not be comingled with any prior
year funds: Provided further, That notwithstanding any other provision
of law, three-quarters of 1 percent of the funds provided for grants
under section 5307 and section 5340, and one-half of 1 percent of the
funds provided for grants under section 5311, shall be available for
administrative expenses and program management oversight, and such funds
shall be available through September 30, 2012.
fixed guideway infrastructure investment
For an amount for capital expenditures authorized under section
5309(b)(2) of title 49, United States Code, $750,000,000, to remain
available through September 30, 2010: Provided, That the Secretary of
Transportation shall apportion funds under this heading pursuant to the
formula set forth in section 5337 of title 49, United States Code:
Provided further, That the funds appropriated under this heading shall
not be commingled with any prior year <<NOTE: Deadline.>> funds:
Provided further, That funds made available under this heading shall be
apportioned not later than 21 days after the date of enactment of this
Act: <<NOTE: Effective date.>> Provided further, That 180 days following
the date of such apportionment, the Secretary shall
[[Page 123 STAT. 211]]
withdraw from each urbanized area an amount equal to 50 percent of the
funds apportioned to such urbanized area less the amount of funding
obligated, and the Secretary shall redistribute such amounts to other
urbanized areas that have had no funds withdrawn under this proviso
utilizing whatever method he or she deems appropriate to ensure that all
funds redistributed under this proviso shall be utilized
promptly: <<NOTE: Effective date.>> Provided further, That 1 year
following the date of such apportionment, the Secretary shall withdraw
from each urbanized area any unobligated funds, and the Secretary shall
redistribute such amounts to other urbanized areas that have had no
funds withdrawn under this proviso utilizing whatever method he or she
deems appropriate to ensure that all funds redistributed under this
proviso shall be utilized promptly: Provided further, That at the
request of an urbanized area, the Secretary of Transportation may
provide an extension of such 1-year period if he or she feels satisfied
that the urbanized area has encountered an unworkable bidding
environment or other extenuating
circumstances: <<NOTE: Submission.>> Provided further, That before
granting such an extension, the Secretary shall send a letter to the
House and Senate Committees on Appropriations that provides a thorough
justification for the extension: <<NOTE: Applicability.>> Provided
further, That applicable chapter 53 requirements shall apply except that
the Federal share of the costs for which a grant is made under this
heading shall be, at the option of the recipient, up to 100
percent: <<NOTE: Applicability.>> Provided further, That the provisions
of section 1101(b) of Public Law 109-59 shall apply to funds made
available under this heading: Provided further, That notwithstanding any
other provision of law, up to 1 percent of the funds under this heading
shall be available for administrative expenses and program management
oversight and shall remain available for obligation until September 30,
2012.
capital investment grants
For an additional amount for ``Capital Investment Grants'', as
authorized under section 5338(c)(4) of title 49, United States Code, and
allocated under section 5309(m)(2)(A) of such title, to enable the
Secretary of Transportation to make discretionary grants as authorized
by section 5309(d) and (e) of such title, $750,000,000, to remain
available through September 30, 2010: Provided, That such amount shall
be allocated without regard to the limitation under section
5309(m)(2)(A)(i): Provided further, That in selecting projects to be
funded, priority shall be given to projects that are currently in
construction or are able to obligate funds within 150 days of enactment
of this <<NOTE: Applicability.>> Act: Provided further, That the
provisions of section 1101(b) of Public Law 109-59 shall apply to funds
made available under this heading: Provided further, That funds
appropriated under this heading shall not be commingled with any prior
year funds: <<NOTE: Applicability.>> Provided further, That applicable
chapter 53 requirements shall apply, except that notwithstanding any
other provision of law, up to 1 percent of the funds provided under this
heading shall be available for administrative expenses and program
management oversight, and shall remain available through September 30,
2012.
[[Page 123 STAT. 212]]
Maritime Administration
supplemental grants for assistance to small shipyards
To make grants to qualified shipyards as authorized under section
3508 of Public Law 110-417 or section 54101 of title 46, United States
Code, $100,000,000, to remain available through September 30,
2010: <<NOTE: Deadline.>> Provided, That the Secretary of Transportation
shall institute measures to ensure that funds provided under this
heading shall be obligated within 180 days of the date of their
distribution: Provided further, That the Maritime Administrator may
retain and transfer to ``Maritime Administration, Operations and
Training'' up to 2 percent of the funds provided under this heading to
fund the award and oversight by the Administrator of grants made under
this heading.
Office of Inspector General
salaries and expenses
For an additional amount for necessary expenses of the Office of
Inspector General to carry out the provisions of the Inspector General
Act of 1978, as amended, $20,000,000, to remain available through
September 30, 2013: Provided, <<NOTE: Audits. Investigations.>> That the
funding made available under this heading shall be used for conducting
audits and investigations of projects and activities carried out with
funds made available in this Act to the Department of Transportation:
Provided further, <<NOTE: Fraud.>> That the Inspector General shall have
all necessary authority, in carrying out the duties specified in the
Inspector General Act, as amended (5 U.S.C. App. 3), to investigate
allegations of fraud, including false statements to the Government (18
U.S.C. 1001), by any person or entity that is subject to regulation by
the Department.
GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION
Sec. 1201. (a) Maintenance of Effort.--
Not <<NOTE: Deadline. Certification.>> later than 30 days after the date
of enactment of this Act, for each amount that is distributed to a State
or agency thereof from an appropriation in this Act for a covered
program, the Governor of the State shall certify to the Secretary of
Transportation that the State will maintain its effort with regard to
State funding for the types of projects that are funded by the
appropriation. <<NOTE: Submission. Time period.>> As part of this
certification, the Governor shall submit to the Secretary of
Transportation a statement identifying the amount of funds the State
planned to expend from State sources as of the date of enactment of this
Act during the period beginning on the date of enactment of this Act
through September 30, 2010, for the types of projects that are funded by
the appropriation.
(b) Failure To Maintain Effort.--
If a State is unable to maintain the level of effort
certified pursuant to subsection (a), the State will be
prohibited by the Secretary of Transportation from receiving
additional limitation pursuant to the redistribution of the
limitation on obligations for Federal-aid highway and highway
safety construction programs that occurs after August 1 for
fiscal year 2011.
(c) Periodic Reports.--
[[Page 123 STAT. 213]]
(1) In general.--Notwithstanding any other provision of law,
each grant recipient shall submit to the covered agency from
which they received funding periodic reports on the use of the
funds appropriated in this Act for covered programs. Such
reports shall be collected and compiled by the covered agency
and transmitted to Congress. Covered agencies may develop such
reports on behalf of grant recipients to ensure the accuracy and
consistency of such reports.
(2) Contents of Reports.--For amounts received under each
covered program by a grant recipient under this Act, the grant
recipient shall include in the periodic reports information
tracking-
(A) the amount of Federal funds appropriated,
allocated, obligated, and outlayed under the
appropriation;
(B) the number of projects that have been put out to
bid under the appropriation and the amount of Federal
funds associated with such projects;
(C) the number of projects for which contracts have
been awarded under the appropriation and the amount of
Federal funds associated with such contracts;
(D) the number of projects for which work has begun
under such contracts and the amount of Federal funds
associated with such contracts;
(E) the number of projects for which work has been
completed under such contracts and the amount of Federal
funds associated with such contracts;
(F) the number of direct, on-project jobs created or
sustained by the Federal funds provided for projects
under the appropriation and, to the extent possible, the
estimated indirect jobs created or sustained in the
associated supplying industries, including the number of
job-years created and the total increase in employment
since the date of enactment of this Act; and
(G) for each covered program report information
tracking the actual aggregate expenditures by each grant
recipient from State sources for projects eligible for
funding under the program during the period beginning on
the date of enactment of this Act through September 30,
2010, as compared to the level of such expenditures that
were planned to occur during such period as of the date
of enactment of this Act.
(3) Timing of Reports.--Each grant recipient shall submit
the first of the periodic reports required under this subsection
not later than 90 days after the date of enactment of this Act
and shall submit updated reports not later than 180 days, 1
year, 2 years, and 3 years after such date of enactment.
(d) Definitions.--In this section, the following definitions apply:
(1) Covered Agency.--The term ``covered agency'' means the
Office of the Secretary of Transportation, the Federal Aviation
Administration, the Federal Highway Administration, the Federal
Railroad Administration, the Federal Transit Administration and
the Maritime Administration of the Department of Transportation.
(2) Covered Program.--The term ``covered program'' means
funds appropriated in this Act for ``Supplemental Discretionary
Grants for a National Surface Transportation System''
[[Page 123 STAT. 214]]
to the Office of the Secretary of Transportation, for
``Supplemental Funding for Facilities and Equipment'' and
``Grants-in-Aid for Airports'' to the Federal Aviation
Administration; for ``Highway Infrastructure Investment'' to the
Federal Highway Administration; for ``Capital Assistance for
High Speed Rail Corridors and Intercity Passenger Rail Service''
and ``Capital Grants to the National Railroad Passenger
Corporation'' to the Federal Railroad Administration; for
``Transit Capital Assistance'', ``Fixed Guideway Infrastructure
Investment'', and ``Capital Investment Grants'' to the Federal
Transit Administration; and ``Supplemental Grants for Assistance
to Small Shipyards'' to the Maritime Administration.
(3) Grant recipient.--The term ``grant recipient'' means a
State or other recipient of assistance provided under a covered
program in this Act. Such term does not include a Federal
department or agency.
(e) Notwithstanding any other provision of law, sections 3501-3521
of title 44, United States Code, shall not apply to the provisions of
this section.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Public and Indian Housing
public housing capital fund
For an additional amount for the ``Public Housing Capital Fund'' to
carry out capital and management activities for public housing agencies,
as authorized under section 9 of the United States Housing Act of 1937
(42 U.S.C. 1437g) (the ``Act''), $4,000,000,000, to remain available
until September 30, 2011: Provided, That the Secretary of Housing and
Urban Development shall distribute $3,000,000,000 of this amount by the
same formula used for amounts made available in fiscal year 2008, except
that the Secretary may determine not to allocate funding to public
housing agencies currently designated as troubled or to public housing
agencies that elect not to accept such
funding: <<NOTE: Deadline.>> Provided further, That the Secretary shall
obligate funds allocated by formula within 30 days of enactment of this
Act: Provided further, That the Secretary shall make available
$1,000,000,000 by competition for priority investments, including
investments that leverage private sector funding or financing for
renovations and energy conservation retrofit investments:
Provided <<NOTE: Deadline.>> further, That the Secretary shall obligate
competitive funding by September 30, 2009: Provided further,
That <<NOTE: Contracts.>> public housing authorities shall give priority
to capital projects that can award contracts based on bids within 120
days from the date the funds are made available to the public housing
authorities: Provided further, That public housing agencies shall give
priority consideration to the rehabilitation of vacant rental units:
Provided further, That public housing agencies shall prioritize capital
projects that are already underway or included in the 5-year capital
fund plans required by the Act (42 U.S.C. 1437c-1(a)): Provided further,
That notwithstanding any other provision of law, (1) funding provided
under this heading may not be used for operating or rental assistance
activities, and (2) any restriction of funding to replacement housing
uses shall be inapplicable: Provided further, That notwithstanding any
other provision of law, the Secretary shall institute measures to ensure
that funds provided under this heading
[[Page 123 STAT. 215]]
shall serve to supplement and not supplant expenditures from other
Federal, State, or local sources or funds independently generated by
the <<NOTE: Deadlines.>> grantee: Provided further, That notwithstanding
section 9(j), public housing agencies shall obligate 100 percent of the
funds within 1 year of the date on which funds become available to the
agency for obligation, shall expend at least 60 percent of funds within
2 years of the date on which funds become available to the agency for
obligation, and shall expend 100 percent of the funds within 3 years of
such date: Provided further, That if a public housing agency fails to
comply with the 1-year obligation requirement, the Secretary shall
recapture all remaining unobligated funds awarded to the public housing
agency and reallocate such funds to agencies that are in compliance with
those requirements: Provided further, That if a public housing agency
fails to comply with either the 2-year or the 3-year expenditure
requirement, the Secretary shall recapture the balance of the funds
awarded to the public housing agency and reallocate such funds to
agencies that are in compliance with those <<NOTE: Waiver
authority.>> requirements: Provided further, That in administering funds
appropriated or otherwise made available under this heading, the
Secretary may waive or specify alternative requirements for any
provision of any statute or regulation in connection with the obligation
by the Secretary or the use of these funds (except for requirements
related to fair housing, nondiscrimination, labor standards, and the
environment), upon a finding that such a waiver is necessary to expedite
or facilitate the use of such funds: Provided further, That, in addition
to waivers authorized under the previous proviso, the Secretary may
direct that requirements relating to the procurement of goods and
services arising under state and local laws and regulations shall not
apply to amounts made available under this heading: Provided further,
That of the funds made available under this heading, up to .5 percent
shall be available for staffing, training, technical assistance,
technology, monitoring, travel, enforcement, research and evaluation
activities: Provided further, That funds set aside in the previous
proviso shall remain available until September 30, 2012: Provided
further, That any funds made available under this heading used by the
Secretary for personnel expenses related to administering funding under
this heading shall be transferred to ``Personnel Compensation and
Benefits, Office of Public and Indian Housing'' and shall retain the
terms and conditions of this account, including reprogramming
provisions, except that the period of availability set forth in the
previous proviso shall govern such transferred funds: Provided further,
That any funds made available under this heading used by the Secretary
for training or other administrative expenses shall be transferred to
``Administration, Operations, and Management'', for non-personnel
expenses of the Department of Housing and Urban Development: Provided
further, That any funds made available under this heading used by the
Secretary for technology shall be transferred to ``Working Capital
Fund''.
Native American Housing Block Grants
For an additional amount for ``Native American Housing Block
Grants'', as authorized under title I of the Native American Housing
Assistance and Self-Determination Act of 1996 (``NAHASDA'') (25
[[Page 123 STAT. 216]]
U.S.C. 4111 et seq.), $510,000,000 to remain available until September
30, 2011: Provided, That $255,000,000 of the amount provided under this
heading shall be distributed according to the same funding formula used
in fiscal year 2008: <<NOTE: Deadline.>> Provided further, That the
Secretary shall obligate funds allocated by formula within 30 days of
enactment of this Act: Provided further, That the amounts distributed
through the formula shall be used for new construction, acquisition,
rehabilitation including energy efficiency and conservation, and
infrastructure development: Provided further, That in selecting projects
to be funded, recipients shall give priority to projects for which
contracts can be awarded within 180 days from the date that funds are
available to the recipients: Provided further, that the Secretary may
obligate $255,000,000 of the amount provided under this heading for
competitive grants to eligible entities that apply for funds authorized
under <<NOTE: Deadline.>> NAHASDA: Provided further, That the Secretary
shall obligate competitive funding by September 30, 2009: Provided
further, That in awarding competitive funds, the Secretary shall give
priority to projects that will spur construction and rehabilitation and
will create employment opportunities for low-income and
unemployed <<NOTE: Deadlines.>> persons: Provided further, That
recipients of funds under this heading shall obligate 100 percent of
such funds within 1 year of the date funds are made available to a
recipient, expend at least 50 percent of such funds within 2 years of
the date on which funds become available to such recipients for
obligation and expend 100 percent of such funds within 3 years of such
date: Provided further, That if a recipient fails to comply with the 2-
year expenditure requirement, the Secretary shall recapture all
remaining funds awarded to the recipient and reallocate such funds
through the funding formula to recipients that are in compliance with
these requirements: Provided further, That if a recipient fails to
comply with the 3-year expenditure requirement, the Secretary shall
recapture the balance of the funds originally awarded to the recipient:
Provided further, That notwithstanding any other provision of law, the
Secretary may set aside up to 2 percent of funds made available under
this paragraph for a housing entity eligible to receive funding under
title VIII of NAHASDA (25 U.S.C. 4221 et seq.): <<NOTE: Waiver
authority.>> Provided further, That in administering funds appropriated
or otherwise made available under this heading, the Secretary may waive
or specify alternative requirements for any provision of any statute or
regulation in connection with the obligation by the Secretary or the use
of these funds (except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment), upon a finding
that such a waiver is necessary to expedite or facilitate the use of
such funds: Provided further, That of the funds made available under
this heading, up to .5 percent shall be available for staffing,
training, technical assistance, technology, monitoring, travel,
enforcement, research and evaluation activities: Provided further, That
funds set aside in the previous proviso shall remain available until
September 30, 2012: Provided further, That any funds made available
under this heading used by the Secretary for personnel expenses related
to administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Office of Public and Indian
Housing'' and shall retain the terms and conditions of this account,
including reprogramming provisions, except that the period of
availability set forth in the
[[Page 123 STAT. 217]]
previous proviso shall govern such transferred funds: Provided further,
That any funds made available under this heading used by the Secretary
for training or other administrative expenses shall be transferred to
``Administration, Operations, and Management'', for non-personnel
expenses of the Department of Housing and Urban Development: Provided
further, That any funds made available under this heading used by the
Secretary for technology shall be transferred to ``Working Capital
Fund''.
Community Planning and Development
community development fund
For an additional amount for ``Community Development Fund''
$1,000,000,000, to remain available until September 30, 2010 to carry
out the community development block grant program under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.):
Provided, That the amount appropriated in this paragraph shall be
distributed pursuant to 42 U.S.C. 5306 to grantees that received funding
in fiscal year <<NOTE: Requirements.>> 2008: Provided further, That in
administering the funds appropriated in this paragraph, the Secretary of
Housing and Urban Development shall establish requirements to expedite
the use of the funds: Provided further, That in selecting projects to be
funded, recipients shall give priority to projects that can award
contracts based on bids within 120 days from the date the funds are made
available to the <<NOTE: Waiver authority.>> recipients: Provided
further, That in administering funds appropriated or otherwise made
available under this heading, the Secretary may waive or specify
alternative requirements for any provision of any statute or regulation
in connection with the obligation by the Secretary or the use by the
recipient of these funds (except for requirements related to fair
housing, nondiscrimination, labor standards, and the environment), upon
a finding that such waiver is necessary to expedite or facilitate the
timely use of such funds and would not be inconsistent with the overall
purpose of the statute.
For the provision of emergency assistance for the redevelopment of
abandoned and foreclosed homes, as authorized under division B, title
III of the Housing and Economic Recovery Act of 2008 (``the Act'')
(Public Law 110-289) (42 U.S.C. 5301 note), $2,000,000,000, to remain
available until September 30, 2010: <<NOTE: Deadlines.>> Provided, That
grantees shall expend at least 50 percent of allocated funds within 2
years of the date funds become available to the grantee for obligation,
and 100 percent of such funds within 3 years of such date: Provided
further, That unless otherwise noted herein, the provisions of the Act
govern the use of the additional funds made available under this
heading: Provided further, That notwithstanding the provisions of
sections 2301(b) and (c)(1) and section 2302 of the Act, funding under
this paragraph shall be allocated by competitions for which eligible
entities shall be States, units of general local government, and
nonprofit entities or consortia of nonprofit entities, which may submit
proposals in partnership with for profit entities: Provided further,
That in selecting grantees, the Secretary of Housing and Urban
Development shall ensure that the grantees are in areas with the
greatest number and percentage of foreclosures and can expend funding
within the period allowed under this heading: Provided
further, <<NOTE: Award criteria.>> That additional award criteria for
such competitions shall include demonstrated grantee
[[Page 123 STAT. 218]]
capacity to execute projects, leveraging potential, concentration of
investment to achieve neighborhood stabilization, and any additional
factors determined by the Secretary of Housing and Urban Development:
Provided further, That the Secretary may establish a minimum
grant <<NOTE: Publication. Criteria. Deadlines.>> size: Provided
further, That the Secretary shall publish criteria on which to base
competition for any grants awarded under this heading not later than 75
days after the enactment of this Act and applications shall be due to
HUD not later than 150 days after the enactment of
this <<NOTE: Deadline.>> Act: Provided further, That the Secretary shall
obligate all funding within 1 year of enactment of this Act: Provided
further, That section 2301(d)(4) of the Act <<NOTE: 42 USC 5301
note.>> is repealed: Provided further, That section 2301(c)(3)(C) of the
Act is amended to read ``establish and operate land banks for homes and
residential properties that have been foreclosed upon'': Provided
further, That funding used for section 2301(c)(3)(E) of the Act shall be
available only for the redevelopment of demolished or vacant properties
as housing: Provided further, That no amounts made available from a
grant under this heading may be used to demolish any public housing (as
such term is defined in section 3 of the United States Housing Act of
1937 (42 U.S.C. 1437a)): Provided further, That a grantee may not use
more than 10 percent of its grant under this heading for demolition
activities under section 2301(c)(3)(C) and (D) unless the Secretary
determines that such use represents an appropriate response to local
market conditions: Provided <<NOTE: 42 USC 5301 note.>> further, That
the recipient of any grant or loan from amounts made available under
this heading or, after the date of enactment under division B, title III
of the Housing and Economic Recovery Act of 2008, may not refuse to
lease a dwelling unit in housing with such loan or grant to a
participant under section 8 of the United States Housing Act of 1937 (42
U.S.C 1437f) because of the status of the prospective tenant as such a
participant: Provided further, That in addition to the eligible uses in
section 2301, the Secretary may also use up to 10 percent of the funds
provided under this heading for grantees for the provision of capacity
building of and support for local communities receiving funding under
section 2301 of the Act or under this heading: Provided <<NOTE: Waiver
authority.>> further, That in administering funds appropriated or
otherwise made available under this section, the Secretary may waive or
specify alternative requirements for any provision of any statute or
regulation in connection with the obligation by the Secretary or the use
of funds except for requirements related to fair housing,
nondiscrimination, labor standards and the environment, upon a finding
that such a waiver is necessary to expedite or facilitate the use of
such funds: Provided further, That <<NOTE: Foreclosure. Notice. 42 USC
5301 note.>> in the case of any acquisition of a foreclosed upon
dwelling or residential real property acquired after the date of
enactment with any amounts made available under this heading or under
division B, title III of the Housing and Economic Recovery Act of 2008
(Public Law 110-289), the initial successor in interest in such property
pursuant to the foreclosure shall assume such interest subject to: (1)
the provision by such successor in interest of a notice to vacate to any
bona fide tenant at least 90 days before the effective date of such
notice; and (2) the rights of any bona fide tenant, as of the date of
such notice of foreclosure: (A) under any bona fide lease entered into
before the notice of foreclosure to occupy the premises until the end of
the remaining term of the lease, except that a successor in interest may
terminate a lease effective on
[[Page 123 STAT. 219]]
the date of sale of the unit to a purchaser who will occupy the unit as
a primary residence, subject to the receipt by the tenant of the 90-day
notice under this paragraph; or (B) without a lease or with a lease
terminable at will under State law, subject to the receipt by the tenant
of the 90-day notice under this paragraph, except that nothing in this
paragraph shall affect the requirements for termination of any Federal-
or State-subsidized tenancy or of any State or local law that provides
longer time periods or other additional protections for tenants:
Provided <<NOTE: Contracts.>> further, That, for purposes of this
paragraph, a lease or tenancy shall be considered bona fide only if: (1)
the mortgagor under the contract is not the tenant; (2) the lease or
tenancy was the result of an arms-length transaction; and (3) the lease
or tenancy requires the receipt of rent that is not substantially less
than fair market rent for the property: Provided <<NOTE: 42 USC 5301
note.>> further, That the recipient of any grant or loan from amounts
made available under this heading or, after the date of enactment, under
division B, title III of the Housing and Economic Recovery Act of 2008
(Public Law 110-289) may not refuse to lease a dwelling unit in housing
assisted with such loan or grant to a holder of a voucher or certificate
of eligibility under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) because of the status of the prospective tenant as
such a holder: Provided further, That in the case of any qualified
foreclosed housing for which funds made available under this heading or,
after the date of enactment, under division B, title III of the Housing
and Economic Recovery Act of 2008 (Public Law 110-289) are used and in
which a recipient of assistance under section 8(o) of the U.S. Housing
Act of 1937 resides at the time of foreclosure, the initial successor in
interest shall be subject to the lease and to the housing assistance
payments contract for the occupied unit: Provided further, That vacating
the property prior to sale shall not constitute good cause for
termination of the tenancy unless the property is unmarketable while
occupied or unless the owner or subsequent purchaser desires the unit
for personal or family use: Provided further, That if a public housing
agency is unable to make payments under the contract to the immediate
successor in interest after foreclosures, due to (1) an action or
inaction by the successor in interest, including the rejection of
payments or the failure of the successor to maintain the unit in
compliance with section 8(o)(8) of the United States Housing Act of 1937
(42 U.S.C.1437f) or (2) an inability to identify the successor, the
agency may use funds that would have been used to pay the rental amount
on behalf of the family--(i) to pay for utilities that are the
responsibility of the owner under the lease or applicable law, after
taking reasonable steps to notify the owner that it intends to make
payments to a utility provider in lieu of payments to the owner, except
prior notification shall not be required in any case in which the unit
will be or has been rendered uninhabitable due to the termination or
threat of termination of service, in which case the public housing
agency shall notify the owner within a reasonable time after making such
payment; or (ii) for the family's reasonable moving costs, including
security deposit costs: Provided further, That this paragraph shall not
preempt any Federal, State or local law that provides more protections
for tenants: Provided further, That of the funds made available under
this heading, up to 1 percent shall be available for staffing, training,
technical assistance, technology, monitoring, travel,
[[Page 123 STAT. 220]]
enforcement, research and evaluation activities: Provided further, That
funds set aside in the previous proviso shall remain available until
September 30, 2012: Provided further, That any funds made available
under this heading used by the Secretary for personnel expenses related
to administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Community Planning and
Development'' and shall retain the terms and conditions of this account,
including reprogramming provisions, except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available under
this heading used by the Secretary for training or other administrative
expenses shall be transferred to ``Administration, Operations, and
Management'' for non-personnel expenses of the Department of Housing and
Urban Development: Provided further, That any funds made available under
this heading used by the Secretary for technology shall be transferred
to ``Working Capital Fund''.
home investment partnerships program
For an additional amount for capital investments in low-income
housing tax credit projects, $2,250,000,000, to remain available until
September 30, 2011: Provided, That such funds shall be made available to
State housing credit agencies, as defined in section 42(h) of the
Internal Revenue Code of 1986, and shall be apportioned among the States
based on the percentage of HOME funds apportioned to each State and the
participating jurisdictions therein for Fiscal Year 2008: Provided
further, That the housing credit agencies in each State shall distribute
these funds competitively under this heading and pursuant to their
qualified allocation plan (as defined in section 42(m) of the Internal
Revenue Code of 1986) to owners of projects who have received or receive
simultaneously an award of low-income housing tax credits under section
42(h) of the Internal Revenue Code of 1986: <<NOTE: Deadlines.>>
Provided further, That housing credit agencies in each State shall
commit not less than 75 percent of such funds within one year of the
date of enactment of this Act, and shall demonstrate that the project
owners shall have expended 75 percent of the funds made available under
this heading within two years of the date of enactment of this Act, and
shall have expended 100 percent of the funds within 3 years of the date
of enactment of this Act: Provided further, That failure by an owner to
expend funds within the parameters required within the previous proviso
shall result in a redistribution of these funds by a housing credit
agency to a more deserving project in such State, except any funds not
expended after 3 years from enactment shall be redistributed by the
Secretary to other States that have fully utilized the funds made
available to them: Provided further, That projects awarded low income
housing tax credits under section 42(h) of the IRC of 1986 in fiscal
years 2007, 2008, or 2009 shall be eligible for funding under this
heading: Provided further, That housing credit agencies shall give
priority to projects that are expected to be completed within 3 years of
enactment: Provided further, That any assistance provided to an eligible
low income housing tax credit project under this heading shall be made
in the same manner and be subject to the same limitations (including
rent, income, and use restrictions, in lieu of corresponding limitations
under the HOME program) as required by the state housing
[[Page 123 STAT. 221]]
credit agency with respect to an award of low income housing credits
under section 42 of the IRC of <<NOTE: Contracts.>> 1986: Provided
further, That the housing credit agency shall perform asset management
functions, or shall contract for the performance of such services, in
either case, at the owner's expense, to ensure compliance with section
42 of the IRC of 1986, and the long term viability of buildings funded
by assistance under this heading: Provided further, That the term
eligible basis (as such term is defined in such section 42) of a
qualified low-income housing tax credit building receiving assistance
under this heading shall not be reduced by the amount of any grant
described under this <<NOTE: Web site.>> heading: Provided further, That
the Secretary shall be given access upon reasonable notice to a State
housing credit agency to information related to the award of Federal
funds from such housing credit agency pursuant to this heading and shall
establish an Internet site that shall identify all projects selected for
an award, including the amount of the award and such site shall provide
linkage to the housing credit agency allocation plan which describes the
process that was used to make the award <<NOTE: Waiver
authority.>> decision: Provided further, That in administering funds
under this heading, the Secretary may waive any provision of any statute
or regulation that the Secretary administers in connection with the
obligation by the Secretary or the use by the recipient of these funds
except for requirements imposed by this heading and requirements related
to fair housing, non-discrimination, labor standards and the
environment, upon a finding that such waiver is required to expedite the
use of such funds: Provided further, That for purposes of environmental
compliance review, funds under this heading that are made available to
State housing credit agencies for distribution to projects awarded low
income housing tax credits shall be treated as funds under the HOME
program and shall be subject to Section 288 of the HOME Investment
Partnership Act.
homelessness prevention fund
For homelessness prevention and rapid re-housing activities,
$1,500,000,000, to remain available until September 30, 2011: Provided,
That funds provided under this heading shall be used for the provision
of short-term or medium-term rental assistance; housing relocation and
stabilization services including housing search, mediation or outreach
to property owners, credit repair, security or utility deposits, utility
payments, rental assistance for a final month at a location, moving cost
assistance, and case management; or other appropriate activities for
homelessness prevention and rapid re-housing of persons who have become
homeless: Provided further, That grantees receiving such assistance
shall collect data on the use of the funds awarded and persons served
with this assistance in the HUD Homeless Management Information System
(``HMIS'') or other comparable database: Provided further, That grantees
may use up to 5 percent of any grant for administrative costs: Provided
further, That funding made available under this heading shall be
allocated to eligible grantees (as defined and designated in sections
411 and 412 of subtitle B of title IV of the McKinney-Vento Homeless
Assistance Act, (the ``Act'')) pursuant to the formula authorized by
section 413 of the Act: Provided further, That the Secretary may
establish a minimum grant size: Provided
further, <<NOTE: Deadlines.>> That grantees shall expend at least 60
percent
[[Page 123 STAT. 222]]
of funds within 2 years of the date that funds became available to them
for obligation, and 100 percent of funds within 3 years of such date,
and the Secretary may recapture unexpended funds in violation of the 2-
year expenditure requirement and reallocate such funds to grantees in
compliance with that <<NOTE: Waiver authority.>> 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 <<NOTE: Publication. Notice. Deadline. Effective
date.>> further, That the Secretary shall publish a notice to establish
such requirements as may be necessary to carry out the provisions of
this section within 30 days of enactment of this Act and that this
notice shall take effect upon issuance: Provided further, That of the
funds provided under this heading, up to .5 percent shall be available
for staffing, training, technical assistance, technology, monitoring,
research and evaluation activities: Provided further, That funds set
aside under the previous proviso shall remain available until September
30, 2012: Provided further, That any funds made available under this
heading used by the Secretary for personnel expenses related to
administering funding under this heading shall be transferred to
``Community Planning and Development Personnel Compensation and
Benefits'' and shall retain the terms and conditions of this account
including reprogramming provisions except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available under
this heading used by the Secretary for training or other administrative
expenses shall be transferred to ``Administration, Operations, and
Management'' for non-personnel expenses of the Department of Housing and
Urban Development: Provided further, That any funding made available
under this heading used by the Secretary for technology shall be
transferred to ``Working Capital Fund.''
Housing Programs
assisted housing stability and energy and green retrofit investments
For assistance to owners of properties receiving project-based
assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C.
17012), section 811 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of
1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which
$2,000,000,000 shall be for an additional amount for paragraph (1) under
the heading ``Project-Based Rental Assistance'' in Public Law 110-161
for payments to owners for 12-month periods, and of which $250,000,000
shall be for grants or loans for energy retrofit and green investments
in such assisted housing: Provided, That projects funded with grants or
loans provided under this heading must comply with the requirements of
subchapter IV of chapter 31 of title 40, United States Code: Provided
further, That such grants or loans shall be provided through the
policies, procedures, contracts, and transactional infrastructure of the
authorized programs administered by the Office of Affordable Housing
Preservation of the Department of Housing and Urban Development, on such
terms and conditions as the Secretary of Housing and Urban Development
deems appropriate to ensure the
[[Page 123 STAT. 223]]
maintenance and preservation of the property, the continued operation
and maintenance of energy efficiency technologies, and the timely
expenditure of funds: Provided further, That the Secretary may provide
incentives to owners to undertake energy or green retrofits as a part of
such grant or loan terms, including, but not limited to, fees to cover
investment oversight and implementation by said owner, or to encourage
job creation for low-income or very low-income individuals: Provided
further, That the Secretary may share in a portion of future property
utility savings resulting from improvements made by grants or loans made
available under this heading: Provided further, That the grants or loans
shall include a financial assessment and physical inspection of such
property: Provided further, That eligible owners must have at least a
satisfactory management review rating, be in substantial compliance with
applicable performance standards and legal requirements, and commit to
an additional period of affordability determined by the Secretary, but
of not fewer than 15 years: Provided further, That the Secretary shall
undertake appropriate underwriting and oversight with respect to grant
and loan transactions and may set aside up to 5 percent of the funds
made available under this heading for grants or loans for such purpose:
Provided further, That the Secretary shall take steps necessary to
ensure that owners receiving funding for energy and green retrofit
investments under this heading shall expend such funding within 2 years
of the date they received the funding: Provided <<NOTE: Waiver
authority.>> further, That in administering funds appropriated or
otherwise made available under this heading, the Secretary may waive or
specify alternative requirements for any provision of any statute or
regulation in connection with the obligation by the Secretary or the use
of these funds (except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment), upon a finding
that such a waiver is necessary to expedite or facilitate the use of
such funds: Provided further, That of the funds provided under this
heading for grants and loans, up to 1 percent shall be available for
staffing, training, technical assistance, technology, monitoring,
research and evaluation activities: Provided further, That funds set
aside in the previous proviso shall remain available until September 30,
2012: Provided further, That funding made available under this heading
and used by the Secretary for personnel expenses related to
administering funding under this heading shall be transferred to
``Housing Personnel Compensation and Benefits'' and shall retain the
terms and conditions of this account including reprogramming provisos
except that the period of availability set forth in the previous proviso
shall govern such transferred funds: Provided further, That any funding
made available under this heading used by the Secretary for training and
other administrative expenses shall be transferred to ``Administration,
Operations and Management'' for non-personnel expenses of the Department
of Housing and Urban Development: Provided further, That any funding
made available under this heading used by the Secretary for technology
shall be transferred to ``Working Capital Fund.''
Office of Lead Hazard Control and Healthy Homes
For an additional amount for the ``Lead Hazard Reduction Program'',
as authorized by section 1011 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992, and by sections 501
[[Page 123 STAT. 224]]
and 502 of the Housing and Urban Development Act of 1974, $100,000,000,
to remain available until September 30, 2011: Provided, That for
purposes of environmental review, pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law
that further the purposes of such Act, a grant under the Healthy Homes
Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead
Technical Studies program under this heading or under prior
appropriations Acts for such purposes under this heading, shall be
considered to be funds for a special project for purposes of section
305(e) of the Multifamily Housing Property Disposition Reform Act of
1994: Provided further, That funds shall be awarded first to applicants
which had applied under the Lead Hazard Reduction Program Notices of
Funding Availability for fiscal year 2008, and were found in the
application review to be qualified for award, but were not awarded
because of funding limitations, and that any funds which remain after
reservation of funds for such grants shall be added to the amount of
funds to be awarded under the Lead Hazard Reduction Program Notices of
Funding Availability for fiscal year 2009:
Provided <<NOTE: Plans. Strategy.>> further, That each applicant for the
Lead Hazard Program Notices of Funding Availability for fiscal year 2009
shall submit a detailed plan and strategy that demonstrates adequate
capacity that is acceptable to the Secretary to carry out the proposed
use of funds: Provided <<NOTE: Deadlines.>> further, That recipients of
funds under this heading shall expend at least 50 percent of such funds
within 2 years of the date on which funds become available to such
jurisdictions for obligation, and expend 100 percent of such funds
within 3 years of such date: Provided further, That if a recipient fails
to comply with the 2-year expenditure requirement, the Secretary shall
recapture all remaining funds awarded to the recipient and reallocate
such funds to recipients that are in compliance with those requirements:
Provided further, That if a recipient fails to comply with the 3-year
expenditure requirement, the Secretary shall recapture the balance of
the funds awarded to the recipient: Provided <<NOTE: Waiver
authority.>> further, That in administering funds appropriated or
otherwise made available under this heading, the Secretary may waive or
specify alternative requirements for any provision of any statute or
regulation in connection with the obligation by the Secretary or the use
of these funds (except for requirements related to fair housing,
nondiscrimination, labor standards and the environment), upon a finding
that such a waiver is necessary to expedite or facilitate the use of
such funds: Provided further, That of the funds made available under
this heading, up to .5 percent shall be available for staffing,
training, technical assistance, technology, monitoring, travel,
enforcement, research and evaluation activities: Provided further, That
funds set aside in the previous proviso shall remain available until
September 30, 2012: Provided further, That any funds made available
under this heading used by the Secretary for personnel expenses related
to administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Office of Lead Hazard Control and
Healthy Homes'' and shall retain the terms and conditions of this
account, including reprogramming provisions, except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available under
this heading used by the Secretary for training or other administrative
expenses shall be transferred
[[Page 123 STAT. 225]]
to ``Administration, Operations, and Management'', for non-personnel
expenses of the Department of Housing and Urban Development: Provided
further, That any funds made available under this heading used by the
Secretary for technology shall be transferred to ``Working Capital
Fund''.
Management and Administration
office of inspector general
For an additional amount for the necessary salaries and expenses of
the Office of Inspector General in carrying out the Inspector General
Act of 1978, as amended, $15,000,000, to remain available until
September 30, 2013: Provided, That the Inspector General shall have
independent authority over all personnel issues within this office.
GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Sec. 1202. FHA Loan Limits for 2009. (a) Loan Limit Floor Based on
2008 Levels.--For mortgages for which the mortgagee issues credit
approval for the borrower during calendar year 2009, if the dollar
amount limitation on the principal obligation of a mortgage determined
under section 203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)) for any size residence for any area is less than such dollar
amount limitation that was in effect for such size residence for such
area for 2008 pursuant to section 202 of the Economic Stimulus Act of
2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other
provision of law, the maximum dollar amount limitation on the principal
obligation of a mortgage for such size residence for such area for
purposes of such section 203(b)(2) shall be considered (except for
purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be
such dollar amount limitation in effect for such size residence for such
area for 2008.
(b) Discretionary Authority for Sub-Areas.--Notwithstanding any
other provision of law, if the Secretary of Housing and Urban
Development determines, for any geographic area that is smaller than an
area for which dollar amount limitations on the principal obligation of
a mortgage are determined under section 203(b)(2) of the National
Housing Act, that a higher such maximum dollar amount limitation is
warranted for any particular size or sizes of residences in such sub-
area by higher median home prices in such sub-area, the Secretary may,
for mortgages for which the mortgagee issues credit approval for the
borrower during calendar year 2009, increase the maximum dollar amount
limitation for such size or sizes of residences for such sub-area that
is otherwise in effect (including pursuant to subsection (a) of this
section), but in no case to an amount that exceeds the amount specified
in section 202(a)(2) of the Economic Stimulus Act of 2008.
Sec. 1203. GSE Conforming Loan Limits for 2009. (a) Loan Limit Floor
Based on 2008 Levels.--For mortgages originated during calendar year
2009, if the limitation on the maximum original principal obligation of
a mortgage that may be purchased by the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation determined
under section 302(b)(2) of the Federal National Mortgage Association
Charter Act (12 U.S.C.
[[Page 123 STAT. 226]]
1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size
residence for any area is less than such maximum original principal
obligation limitation that was in effect for such size residence for
such area for 2008 pursuant to section 201 of the Economic Stimulus Act
of 2008 (Public Law 110-185; 122 Stat. 619), notwithstanding any other
provision of law, the limitation on the maximum original principal
obligation of a mortgage for such Association and Corporation for such
size residence for such area shall be such maximum limitation in effect
for such size residence for such area for 2008.
(b) Discretionary Authority for Sub-Areas.--Notwithstanding any
other provision of law, if the Director of the Federal Housing Finance
Agency determines, for any geographic area that is smaller than an area
for which limitations on the maximum original principal obligation of a
mortgage are determined for the Federal National Mortgage Association or
the Federal Home Loan Mortgage Corporation, that a higher such maximum
original principal obligation limitation is warranted for any particular
size or sizes of residences in such sub-area by higher median home
prices in such sub-area, the Director may, for mortgages originated
during 2009, increase the maximum original principal obligation
limitation for such size or sizes of residences for such sub-area that
is otherwise in effect (including pursuant to subsection (a) of this
section) for such Association and Corporation, but in no case to an
amount that exceeds the amount specified in the matter following the
comma in section 201(a)(1)(B) of the Economic Stimulus Act of 2008.
Sec. 1204. FHA Reverse Mortgage Loan Limits for 2009. For mortgages
for which the mortgagee issues credit approval for the borrower during
calendar year 2009, the second sentence of section 255(g) of the
National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to
require that in no case may the benefits of insurance under such section
255 exceed 150 percent of the maximum dollar amount in effect under the
sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)).
TITLE XIII--HEALTH <<NOTE: Health Information Technology for Economic
and Clinical Health Act.>> INFORMATION TECHNOLOGY
SEC. 13001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.
(a) Short Title.--This <<NOTE: 42 USC 201 note.>> title (and title
IV of division B) may be cited as the ``Health Information Technology
for Economic and Clinical Health Act'' or the ``HITECH Act''.
(b) Table of Contents of Title.--The table of contents of this title
is as follows:
Sec. 13001. Short title; table of contents of title.
Subtitle A--Promotion of Health Information Technology
Part 1--Improving Health Care Quality, Safety, and Efficiency
Sec. 13101. ONCHIT; standards development and adoption.
``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
``Sec. 3000. Definitions.
[[Page 123 STAT. 227]]
``Subtitle A--Promotion of Health Information Technology
``Sec. 3001. Office of the National Coordinator for Health
Information Technology.
``Sec. 3002. HIT Policy Committee.
``Sec. 3003. HIT Standards Committee.
``Sec. 3004. Process for adoption of endorsed recommendations;
adoption of initial set of standards,
implementation specifications, and
certification criteria.
``Sec. 3005. Application and use of adopted standards and
implementation specifications by Federal
agencies.
``Sec. 3006. Voluntary application and use of adopted standards
and implementation specifications by private
entities.
``Sec. 3007. Federal health information technology.
``Sec. 3008. Transitions.
``Sec. 3009. Miscellaneous provisions.
Sec. 13102. Technical amendment.
Part 2--Application and Use of Adopted Health Information Technology
Standards; Reports
Sec. 13111. Coordination of Federal activities with adopted standards
and implementation specifications.
Sec. 13112. Application to private entities.
Sec. 13113. Study and reports.
Subtitle B--Testing of Health Information Technology
Sec. 13201. National Institute for Standards and Technology testing.
Sec. 13202. Research and development programs.
Subtitle C--Grants and Loans Funding
Sec. 13301. Grant, loan, and demonstration programs.
``Subtitle B--Incentives for the Use of Health Information Technology
``Sec. 3011. Immediate funding to strengthen the health
information technology infrastructure.
``Sec. 3012. Health information technology implementation
assistance.
``Sec. 3013. State grants to promote health information
technology.
``Sec. 3014. Competitive grants to States and Indian tribes for
the development of loan programs to
facilitate the widespread adoption of
certified EHR technology.
``Sec. 3015. Demonstration program to integrate information
technology into clinical education.
``Sec. 3016. Information technology professionals in health
care.
``Sec. 3017. General grant and loan provisions.
``Sec. 3018. Authorization for appropriations.
Subtitle D--Privacy
Sec. 13400. Definitions.
Part 1--Improved Privacy Provisions and Security Provisions
Sec. 13401. Application of security provisions and penalties to business
associates of covered entities; annual guidance on security
provisions.
Sec. 13402. Notification in the case of breach.
Sec. 13403. Education on health information privacy.
Sec. 13404. Application of privacy provisions and penalties to business
associates of covered entities.
Sec. 13405. Restrictions on certain disclosures and sales of health
information; accounting of certain protected health
information disclosures; access to certain information in
electronic format.
Sec. 13406. Conditions on certain contacts as part of health care
operations.
Sec. 13407. Temporary breach notification requirement for vendors of
personal health records and other non-HIPAA covered entities.
Sec. 13408. Business associate contracts required for certain entities.
Sec. 13409. Clarification of application of wrongful disclosures
criminal penalties.
Sec. 13410. Improved enforcement.
Sec. 13411. Audits.
Part 2--Relationship to Other Laws; Regulatory References; Effective
Date; Reports
Sec. 13421. Relationship to other laws.
[[Page 123 STAT. 228]]
Sec. 13422. Regulatory references.
Sec. 13423. Effective date.
Sec. 13424. Studies, reports, guidance.
Subtitle A--Promotion of Health Information Technology
PART 1--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY
SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.
The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by
adding at the end the following:
``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
``SEC. 3000. <<NOTE: 42 USC 300jj.>> DEFINITIONS.
``In this title:
``(1) Certified ehr technology.--The term `certified EHR
technology' means a qualified electronic health record that is
certified pursuant to section 3001(c)(5) as meeting standards
adopted under section 3004 that are applicable to the type of
record involved (as determined by the Secretary, such as an
ambulatory electronic health record for office-based physicians
or an inpatient hospital electronic health record for
hospitals).
``(2) Enterprise integration.--The term `enterprise
integration' means the electronic linkage of health care
providers, health plans, the government, and other interested
parties, to enable the electronic exchange and use of health
information among all the components in the health care
infrastructure in accordance with applicable law, and such term
includes related application protocols and other related
standards.
``(3) Health care provider.--The term `health care provider'
includes a hospital, skilled nursing facility, nursing facility,
home health entity or other long term care facility, health care
clinic, community mental health center (as defined in section
1913(b)(1)), renal dialysis facility, blood center, ambulatory
surgical center described in section 1833(i) of the Social
Security Act, emergency medical services provider, Federally
qualified health center, group practice, a pharmacist, a
pharmacy, a laboratory, a physician (as defined in section
1861(r) of the Social Security Act), a practitioner (as
described in section 1842(b)(18)(C) of the Social Security Act),
a provider operated by, or under contract with, the Indian
Health Service or by an Indian tribe (as defined in the Indian
Self-Determination and Education Assistance Act), tribal
organization, or urban Indian organization (as defined in
section 4 of the Indian Health Care Improvement Act), a rural
health clinic, a covered entity under section 340B, an
ambulatory surgical center described in section 1833(i) of the
Social Security Act, a therapist (as defined in section
1848(k)(3)(B)(iii) of the Social Security Act), and any other
category of health care facility, entity,
[[Page 123 STAT. 229]]
practitioner, or clinician determined appropriate by the
Secretary.
``(4) Health information.--The term `health information' has
the meaning given such term in section 1171(4) of the Social
Security Act.
``(5) Health information technology.--The term `health
information technology' means hardware, software, integrated
technologies or related licenses, intellectual property,
upgrades, or packaged solutions sold as services that are
designed for or support the use by health care entities or
patients for the electronic creation, maintenance, access, or
exchange of health information
``(6) Health plan.--The term `health plan' has the meaning
given such term in section 1171(5) of the Social Security Act.
``(7) HIT policy committee.--The term `HIT Policy Committee'
means such Committee established under section 3002(a).
``(8) HIT standards committee.--The term `HIT Standards
Committee' means such Committee established under section
3003(a).
``(9) Individually identifiable health information.--The
term `individually identifiable health information' has the
meaning given such term in section 1171(6) of the Social
Security Act.
``(10) Laboratory.--The term `laboratory' has the meaning
given such term in section 353(a).
``(11) National coordinator.--The term `National
Coordinator' means the head of the Office of the National
Coordinator for Health Information Technology established under
section 3001(a).
``(12) Pharmacist.--The term `pharmacist' has the meaning
given such term in section 804(2) of the Federal Food, Drug, and
Cosmetic Act.
``(13) Qualified electronic health record.--The term
`qualified electronic health record' means an electronic record
of health-related information on an individual that--
``(A) includes patient demographic and clinical
health information, such as medical history and problem
lists; and
``(B) has the capacity--
``(i) to provide clinical decision support;
``(ii) to support physician order entry;
``(iii) to capture and query information
relevant to health care quality; and
``(iv) to exchange electronic health
information with, and integrate such information
from other sources.
``(14) State.--The term `State' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana Islands.
[[Page 123 STAT. 230]]
``Subtitle A--Promotion of Health Information Technology
``SEC. 3001. OFFICE <<NOTE: 42 USC 300jj-11.>> OF THE NATIONAL
COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY.
``(a) Establishment.--There is established within the Department of
Health and Human Services an Office of the National Coordinator for
Health Information Technology (referred to in this section as the
`Office'). The Office shall be headed by a National Coordinator who
shall be appointed by the Secretary and shall report directly to the
Secretary.
``(b) Purpose.--The National Coordinator shall perform the duties
under subsection (c) in a manner consistent with the development of a
nationwide health information technology infrastructure that allows for
the electronic use and exchange of information and that--
``(1) ensures that each patient's health information is
secure and protected, in accordance with applicable law;
``(2) improves health care quality, reduces medical errors,
reduces health disparities, and advances the delivery of
patient-centered medical care;
``(3) reduces health care costs resulting from inefficiency,
medical errors, inappropriate care, duplicative care, and
incomplete information;
``(4) provides appropriate information to help guide medical
decisions at the time and place of care;
``(5) ensures the inclusion of meaningful public input in
such development of such infrastructure;
``(6) improves the coordination of care and information
among hospitals, laboratories, physician offices, and other
entities through an effective infrastructure for the secure and
authorized exchange of health care information;
``(7) improves public health activities and facilitates the
early identification and rapid response to public health threats
and emergencies, including bioterror events and infectious
disease outbreaks;
``(8) facilitates health and clinical research and health
care quality;
``(9) promotes early detection, prevention, and management
of chronic diseases;
``(10) promotes a more effective marketplace, greater
competition, greater systems analysis, increased consumer
choice, and improved outcomes in health care services; and
``(11) improves efforts to reduce health disparities.
``(c) Duties of the National Coordinator.--
``(1) Standards.--The National Coordinator shall--
``(A) review and determine whether to endorse each
standard, implementation specification, and
certification criterion for the electronic exchange and
use of health information that is recommended by the HIT
Standards Committee under section 3003 for purposes of
adoption under section 3004;
``(B) make <<NOTE: Reports. Deadline.>> such
determinations under subparagraph (A), and report to the
Secretary such determinations, not later than 45 days
after the date the recommendation is received by the
Coordinator; and
[[Page 123 STAT. 231]]
``(C) review Federal health information technology
investments to ensure that Federal health information
technology programs are meeting the objectives of the
strategic plan published under paragraph (3).
``(2) HIT policy coordination.--
``(A) In general.--The National Coordinator shall
coordinate health information technology policy and
programs of the Department with those of other relevant
executive branch agencies with a goal of avoiding
duplication of efforts and of helping to ensure that
each agency undertakes health information technology
activities primarily within the areas of its greatest
expertise and technical capability and in a manner
towards a coordinated national goal.
``(B) HIT policy and standards committees.--The
National Coordinator shall be a leading member in the
establishment and operations of the HIT Policy Committee
and the HIT Standards Committee and shall serve as a
liaison among those two Committees and the Federal
Government.
``(3) Strategic plan.--
``(A) In general.--The National Coordinator shall,
in consultation with other appropriate Federal agencies
(including the National Institute of Standards and
Technology), update the Federal Health IT Strategic Plan
(developed as of June 3, 2008) to include specific
objectives, milestones, and metrics with respect to the
following:
``(i) The electronic exchange and use of
health information and the enterprise integration
of such information.
``(ii) The utilization of an electronic health
record for each person in the United States by
2014.
``(iii) The incorporation of privacy and
security protections for the electronic exchange
of an individual's individually identifiable
health information.
``(iv) Ensuring security methods to ensure
appropriate authorization and electronic
authentication of health information and
specifying technologies or methodologies for
rendering health information unusable, unreadable,
or indecipherable.
``(v) Specifying a framework for coordination
and flow of recommendations and policies under
this subtitle among the Secretary, the National
Coordinator, the HIT Policy Committee, the HIT
Standards Committee, and other health information
exchanges and other relevant entities.
``(vi) Methods to foster the public
understanding of health information technology.
``(vii) Strategies to enhance the use of
health information technology in improving the
quality of health care, reducing medical errors,
reducing health disparities, improving public
health, increasing prevention and coordination
with community resources, and improving the
continuity of care among health care settings.
``(viii) Specific plans for ensuring that
populations with unique needs, such as children,
are appropriately
[[Page 123 STAT. 232]]
addressed in the technology design, as
appropriate, which may include technology that
automates enrollment and retention for eligible
individuals.
``(B) Collaboration.--The strategic plan shall be
updated through collaboration of public and private
entities.
``(C) Measurable outcome goals.--The strategic plan
update shall include measurable outcome goals.
``(D) Publication.--The National Coordinator shall
republish the strategic plan, including all updates.
``(4) Website.--The National Coordinator shall maintain and
frequently update an Internet website on which there is posted
information on the work, schedules, reports, recommendations,
and other information to ensure transparency in promotion of a
nationwide health information technology infrastructure.
``(5) Certification.--
``(A) In general.--The National Coordinator, in
consultation with the Director of the National Institute
of Standards and Technology, shall keep or recognize a
program or programs for the voluntary certification of
health information technology as being in compliance
with applicable certification criteria adopted under
this subtitle. Such program shall include, as
appropriate, testing of the technology in accordance
with section 13201(b) of the Health Information
Technology for Economic and Clinical Health Act.
``(B) Certification criteria described.--In this
title, the term `certification criteria' means, with
respect to standards and implementation specifications
for health information technology, criteria to establish
that the technology meets such standards and
implementation specifications.
``(6) Reports and publications.--
``(A) Report on additional funding or authority
needed.--Not later than 12 months after the date of the
enactment of this title, the National Coordinator shall
submit to the appropriate committees of jurisdiction of
the House of Representatives and the Senate a report on
any additional funding or authority the Coordinator or
the HIT Policy Committee or HIT Standards Committee
requires to evaluate and develop standards,
implementation specifications, and certification
criteria, or to achieve full participation of
stakeholders in the adoption of a nationwide health
information technology infrastructure that allows for
the electronic use and exchange of health information.
``(B) Implementation report.--The National
Coordinator shall prepare a report that identifies
lessons learned from major public and private health
care systems in their implementation of health
information technology, including information on whether
the technologies and practices developed by such systems
may be applicable to and usable in whole or in part by
other health care providers.
``(C) Assessment of impact of hit on communities
with health disparities and uninsured, underinsured, and
medically underserved areas.--The National Coordinator
shall assess and publish the impact of health
[[Page 123 STAT. 233]]
information technology in communities with health
disparities and in areas with a high proportion of
individuals who are uninsured, underinsured, and
medically underserved individuals (including urban and
rural areas) and identify practices to increase the
adoption of such technology by health care providers in
such communities, and the use of health information
technology to reduce and better manage chronic diseases.
``(D) Evaluation of benefits and costs of the
electronic use and exchange of health information.--The
National Coordinator shall evaluate and publish evidence
on the benefits and costs of the electronic use and
exchange of health information and assess to whom these
benefits and costs accrue.
``(E) Resource requirements.--The National
Coordinator shall estimate and publish resources
required annually to reach the goal of utilization of an
electronic health record for each person in the United
States by 2014, including--
``(i) the required level of Federal funding;
``(ii) expectations for regional, State, and
private investment;
``(iii) the expected contributions by
volunteers to activities for the utilization of
such records; and
``(iv) the resources needed to establish a
health information technology workforce sufficient
to support this effort (including education
programs in medical informatics and health
information management).
``(7) Assistance.--The National Coordinator may provide
financial assistance to consumer advocacy groups and not-for-
profit entities that work in the public interest for purposes of
defraying the cost to such groups and entities to participate
under, whether in whole or in part, the National Technology
Transfer Act of 1995 (15 U.S.C. 272 note).
``(8) Governance for nationwide health information
network.--The <<NOTE: Establishment.>> National Coordinator
shall establish a governance mechanism for the nationwide health
information network.
``(d) Detail of Federal Employees.--
``(1) In general.--Upon the request of the National
Coordinator, the head of any Federal agency is authorized to
detail, with or without reimbursement from the Office, any of
the personnel of such agency to the Office to assist it in
carrying out its duties under this section.
``(2) Effect of detail.--Any detail of personnel under
paragraph (1) shall--
``(A) not interrupt or otherwise affect the civil
service status or privileges of the Federal employee;
and
``(B) be in addition to any other staff of the
Department employed by the National Coordinator.
``(3) Acceptance of detailees.--Notwithstanding any other
provision of law, the Office may accept detailed personnel from
other Federal agencies without regard to whether the agency
described under paragraph (1) is reimbursed.
``(e) Chief Privacy Officer of the Office of the National
Coordinator.--Not <<NOTE: Deadline.>> later than 12 months after the
date of the enactment of this title, the Secretary shall appoint a Chief
Privacy Officer of the Office of the National Coordinator, whose duty it
[[Page 123 STAT. 234]]
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 <<NOTE: 42 USC 300jj-12.>> POLICY COMMITTEE.
``(a) Establishment.--There is established a HIT Policy Committee to
make policy recommendations to the National Coordinator relating to the
implementation of a nationwide health information technology
infrastructure, including implementation of the strategic plan described
in section 3001(c)(3).
``(b) Duties.--
``(1) Recommendations on health information technology
infrastructure.--The HIT Policy Committee shall recommend a
policy framework for the development and adoption of a
nationwide health information technology infrastructure that
permits the electronic exchange and use of health information as
is consistent with the strategic plan under section 3001(c)(3)
and that includes the recommendations under paragraph (2). The
Committee shall update such recommendations and make new
recommendations as appropriate.
``(2) Specific <<NOTE: Recommen- dations.>> areas of
standard development.--
``(A) In general.--The HIT Policy Committee shall
recommend the areas in which standards, implementation
specifications, and certification criteria are needed
for the electronic exchange and use of health
information for purposes of adoption under section 3004
and shall recommend an order of priority for the
development, harmonization, and recognition of such
standards, specifications, and certification criteria
among the areas so recommended. Such standards and
implementation specifications shall include named
standards, architectures, and software schemes for the
authentication and security of individually identifiable
health information and other information as needed to
ensure the reproducible development of common solutions
across disparate entities.
``(B) Areas required for consideration.--For
purposes of subparagraph (A), the HIT Policy Committee
shall make recommendations for at least the following
areas:
``(i) Technologies that protect the privacy of
health information and promote security in a
qualified electronic health record, including for
the segmentation and protection from disclosure of
specific and sensitive individually identifiable
health information with the goal of minimizing the
reluctance of patients to seek care (or disclose
information about a condition) because of privacy
concerns, in accordance with applicable law, and
for the use and disclosure of limited data sets of
such information.
``(ii) A nationwide health information
technology infrastructure that allows for the
electronic use and accurate exchange of health
information.
``(iii) The utilization of a certified
electronic health record for each person in the
United States by 2014.
[[Page 123 STAT. 235]]
``(iv) Technologies that as a part of a
qualified electronic health record allow for an
accounting of disclosures made by a covered entity
(as defined for purposes of regulations
promulgated under section 264(c) of the Health
Insurance Portability and Accountability Act of
1996) for purposes of treatment, payment, and
health care operations (as such terms are defined
for purposes of such regulations).
``(v) The use of certified electronic health
records to improve the quality of health care,
such as by promoting the coordination of health
care and improving continuity of health care among
health care providers, by reducing medical errors,
by improving population health, by reducing health
disparities, by reducing chronic disease, and by
advancing research and education.
``(vi) Technologies that allow individually
identifiable health information to be rendered
unusable, unreadable, or indecipherable to
unauthorized individuals when such information is
transmitted in the nationwide health information
network or physically transported outside of the
secured, physical perimeter of a health care
provider, health plan, or health care
clearinghouse.
``(vii) The use of electronic systems to
ensure the comprehensive collection of patient
demographic data, including, at a minimum, race,
ethnicity, primary language, and gender
information.
``(viii) Technologies that address the needs
of children and other vulnerable populations.
``(C) Other areas for consideration.--In making
recommendations under subparagraph (A), the HIT Policy
Committee may consider the following additional areas:
``(i) The appropriate uses of a nationwide
health information infrastructure, including for
purposes of--
``(I) the collection of quality data
and public reporting;
``(II) biosurveillance and public
health;
``(III) medical and clinical
research; and
``(IV) drug safety.
``(ii) Self-service technologies that
facilitate the use and exchange of patient
information and reduce wait times.
``(iii) Telemedicine technologies, in order to
reduce travel requirements for patients in remote
areas.
``(iv) Technologies that facilitate home
health care and the monitoring of patients
recuperating at home.
``(v) Technologies that help reduce medical
errors.
``(vi) Technologies that facilitate the
continuity of care among health settings.
``(vii) Technologies that meet the needs of
diverse populations.
``(viii) Methods to facilitate secure access
by an individual to such individual's protected
health information.
``(ix) Methods, guidelines, and safeguards to
facilitate secure access to patient information by
a family
[[Page 123 STAT. 236]]
member, caregiver, or guardian acting on behalf of
a patient due to age-related and other disability,
cognitive impairment, or dementia.
``(x) Any other technology that the HIT Policy
Committee finds to be among the technologies with
the greatest potential to improve the quality and
efficiency of health care.
``(3) Forum.--The HIT Policy Committee shall serve as a
forum for broad stakeholder input with specific expertise in
policies relating to the matters described in paragraphs (1) and
(2).
``(4) Consistency with evaluation conducted under mippa.--
``(A) Requirement for consistency.--The HIT Policy
Committee shall ensure that recommendations made under
paragraph (2)(B)(vi) are consistent with the evaluation
conducted under section 1809(a) of the Social Security
Act.
``(B) Scope.--Nothing in subparagraph (A) shall be
construed to limit the recommendations under paragraph
(2)(B)(vi) to the elements described in section
1809(a)(3) of the Social Security Act.
``(C) Timing.--
The <<NOTE: Applicability.>> requirement under
subparagraph (A) shall be applicable to the extent that
evaluations have been conducted under section 1809(a) of
the Social Security Act, regardless of whether the
report described in subsection (b) of such section has
been submitted.
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall take a
leading position in the establishment and operations of the HIT
Policy Committee.
``(2) Membership.--The HIT Policy Committee shall be
composed of members to be appointed as follows:
``(A) 3 members shall be appointed by the Secretary,
1 of whom shall be appointed to represent the Department
of Health and Human Services and 1 of whom shall be a
public health official.
``(B) 1 member shall be appointed by the majority
leader of the Senate.
``(C) 1 member shall be appointed by the minority
leader of the Senate.
``(D) 1 member shall be appointed by the Speaker of
the House of Representatives.
``(E) 1 member shall be appointed by the minority
leader of the House of Representatives.
``(F) Such <<NOTE: President.>> other members as
shall be appointed by the President as representatives
of other relevant Federal agencies.
``(G) 13 members shall be appointed by the
Comptroller General of the United States of whom--
``(i) 3 members shall advocates for patients
or consumers;
``(ii) 2 members shall represent health care
providers, one of which shall be a physician;
``(iii) 1 member shall be from a labor
organization representing health care workers;
``(iv) 1 member shall have expertise in health
information privacy and security;
[[Page 123 STAT. 237]]
``(v) 1 member shall have expertise in
improving the health of vulnerable populations;
``(vi) 1 member shall be from the research
community;
``(vii) 1 member shall represent health plans
or other third-party payers;
``(viii) 1 member shall represent information
technology vendors;
``(ix) 1 member shall represent purchasers or
employers; and
``(x) 1 member shall have expertise in health
care quality measurement and reporting.
``(3) Participation.--The members of the HIT Policy
Committee appointed under paragraph (2) shall represent a
balance among various sectors of the health care system so that
no single sector unduly influences the recommendations of the
Policy Committee.
``(4) Terms.--
``(A) In general.--The terms of the members of the
HIT Policy Committee shall be for 3 years, except that
the Comptroller General shall designate staggered terms
for the members first appointed.
``(B) Vacancies.--Any member appointed to fill a
vacancy in the membership of the HIT Policy Committee
that occurs prior to the expiration of the term for
which the member's predecessor was appointed shall be
appointed only for the remainder of that term. A member
may serve after the expiration of that member's term
until a successor has been appointed. A vacancy in the
HIT Policy Committee shall be filled in the manner in
which the original appointment was made.
``(5) Outside involvement.--The HIT Policy Committee shall
ensure an opportunity for the participation in activities of the
Committee of outside advisors, including individuals with
expertise in the development of policies for the electronic
exchange and use of health information, including in the areas
of health information privacy and security.
``(6) Quorum.--A majority of the member of the HIT Policy
Committee shall constitute a quorum for purposes of voting, but
a lesser number of members may meet and hold hearings.
``(7) Failure of initial appointment.--If,
on <<NOTE: Deadline.>> the date that is 45 days after the date
of enactment of this title, an official authorized under
paragraph (2) to appoint one or more members of the HIT Policy
Committee has not appointed the full number of members that such
paragraph authorizes such official to appoint, the Secretary is
authorized to appoint such members.
``(8) Consideration.--The National Coordinator shall ensure
that the relevant and available recommendations and comments
from the National Committee on Vital and Health Statistics are
considered in the development of policies.
``(d) Application of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14 of such Act, shall apply to the HIT
Policy Committee.
``(e) Publication.--The <<NOTE: Federal Register, publication. Web
posting.>> 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
[[Page 123 STAT. 238]]
Technology of all policy recommendations made by the HIT Policy
Committee under this section.
``SEC. 3003. HIT <<NOTE: 42 USC 300jj-13.>> STANDARDS COMMITTEE.
``(a) Establishment.--There is established a committee to be known
as the HIT Standards Committee to recommend to the National Coordinator
standards, implementation specifications, and certification criteria for
the electronic exchange and use of health information for purposes of
adoption under section 3004, consistent with the implementation of the
strategic plan described in section 3001(c)(3) and beginning with the
areas listed in section 3002(b)(2)(B) in accordance with policies
developed by the HIT Policy Committee.
``(b) Duties.--
``(1) Standards development.--
``(A) In general.--The <<NOTE: Recommen-
dations.>> HIT Standards Committee shall recommend to
the National Coordinator standards, implementation
specifications, and certification criteria described in
subsection (a) that have been developed, harmonized, or
recognized by the HIT Standards Committee. The HIT
Standards Committee shall update such recommendations
and make new recommendations as appropriate, including
in response to a notification sent under section
3004(a)(2)(B). Such recommendations shall be consistent
with the latest recommendations made by the HIT Policy
Committee.
``(B) Harmonization.--The HIT Standards Committee
recognize harmonized or updated standards from an entity
or entities for the purpose of harmonizing or updating
standards and implementation specifications in order to
achieve uniform and consistent implementation of the
standards and implementation specifications.
``(C) Pilot testing of standards and implementation
specifications.--In the development, harmonization, or
recognition of standards and implementation
specifications, the HIT Standards Committee shall, as
appropriate, provide for the testing of such standards
and specifications by the National Institute for
Standards and Technology under section 13201(a) of the
Health Information Technology for Economic and Clinical
Health Act.
``(D) Consistency.--The standards, implementation
specifications, and certification criteria recommended
under this subsection shall be consistent with the
standards for information transactions and data elements
adopted pursuant to section 1173 of the Social Security
Act.
``(2) Forum.--The HIT Standards Committee shall serve as a
forum for the participation of a broad range of stakeholders to
provide input on the development, harmonization, and recognition
of standards, implementation specifications, and certification
criteria necessary for the development and adoption of a
nationwide health information technology infrastructure that
allows for the electronic use and exchange of health
information.
``(3) Schedule.--Not <<NOTE: Deadline.>> later than 90 days
after the date of the enactment of this title, the HIT Standards
Committee shall develop a schedule for the assessment of policy
recommendations developed by the HIT Policy Committee under
[[Page 123 STAT. 239]]
section 3002. The <<NOTE: Deadline.>> HIT Standards Committee
shall update such schedule annually. The <<NOTE: Federal
Register, publication.>> Secretary shall publish such schedule
in the Federal Register.
``(4) Public input.--The HIT Standards Committee shall
conduct open public meetings and develop a process to allow for
public comment on the schedule described in paragraph (3) and
recommendations described in this subsection. Under such process
comments shall be submitted in a timely manner after the date of
publication of a recommendation under this subsection.
``(5) Consideration.--The National Coordinator shall ensure
that the relevant and available recommendations and comments
from the National Committee on Vital and Health Statistics are
considered in the development of standards.
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall take a
leading position in the establishment and operations of the HIT
Standards Committee.
``(2) Membership.--The membership of the HIT Standards
Committee shall at least reflect providers, ancillary healthcare
workers, consumers, purchasers, health plans, technology
vendors, researchers, relevant Federal agencies, and individuals
with technical expertise on health care quality, privacy and
security, and on the electronic exchange and use of health
information.
``(3) Participation.--The members of the HIT Standards
Committee appointed under this subsection shall represent a
balance among various sectors of the health care system so that
no single sector unduly influences the recommendations of such
Committee.
``(4) Outside involvement.--The HIT Policy Committee shall
ensure an opportunity for the participation in activities of the
Committee of outside advisors, including individuals with
expertise in the development of standards for the electronic
exchange and use of health information, including in the areas
of health information privacy and security.
``(5) Balance among sectors.--In developing the procedures
for conducting the activities of the HIT Standards Committee,
the HIT Standards Committee shall act to ensure a balance among
various sectors of the health care system so that no single
sector unduly influences the actions of the HIT Standards
Committee.
``(6) Assistance.--For the purposes of carrying out this
section, the Secretary may provide or ensure that financial
assistance is provided by the HIT Standards Committee to defray
in whole or in part any membership fees or dues charged by such
Committee to those consumer advocacy groups and not for profit
entities that work in the public interest as a part of their
mission.
``(d) Application of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14, shall apply to the HIT Standards
Committee.
``(e) Publication.--The <<NOTE: Federal Register, publication. Web
posting.>> Secretary shall provide for publication in the Federal
Register and the posting on the Internet website of the Office of the
National Coordinator for Health Information Technology of all
recommendations made by the HIT Standards Committee under this section.
[[Page 123 STAT. 240]]
``SEC. 3004. PROCESS <<NOTE: 42 USC 300jj-14.>> FOR ADOPTION OF ENDORSED
RECOMMENDATIONS; ADOPTION OF INITIAL SET OF STANDARDS,
IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION CRITERIA.
``(a) Process for Adoption of Endorsed Recommendations.--
``(1) Review of endorsed standards, implementation
specifications, and certification criteria.--
Not <<NOTE: Deadline.>> later than 90 days after the date of
receipt of standards, implementation specifications, or
certification criteria endorsed under section 3001(c), the
Secretary, in consultation with representatives of other
relevant Federal agencies, shall jointly review such standards,
implementation specifications, or certification criteria and
shall determine whether or not to propose adoption of such
standards, implementation specifications, or certification
criteria.
``(2) Determination to adopt standards, implementation
specifications, and certification criteria.--If the Secretary
determines--
``(A) to propose adoption of any grouping of such
standards, implementation specifications, or
certification criteria, the Secretary shall, by
regulation under section 553 of title 5, United States
Code, determine whether or not to adopt such grouping of
standards, implementation specifications, or
certification criteria; or
``(B) <<NOTE: Notification.>> not to propose
adoption of any grouping of standards, implementation
specifications, or certification criteria, the Secretary
shall notify the National Coordinator and the HIT
Standards Committee in writing of such determination and
the reasons for not proposing the adoption of such
recommendation.
``(3) Publication.--The <<NOTE: Federal Register,
publication.>> Secretary shall provide for publication in the
Federal Register of all determinations made by the Secretary
under paragraph (1).
``(b) Adoption of Standards, Implementation Specifications, and
Certification Criteria.--
``(1) In general.--Not <<NOTE: Deadline.>> later than
December 31, 2009, the Secretary shall, through the rulemaking
process consistent with subsection (a)(2)(A), adopt an initial
set of standards, implementation specifications, and
certification criteria for the areas required for consideration
under section 3002(b)(2)(B). The rulemaking for the initial set
of standards, implementation specifications, and certification
criteria may be issued on an interim, final basis.
``(2) Application of current standards, implementation
specifications, and certification criteria.--The standards,
implementation specifications, and certification criteria
adopted before the date of the enactment of this title through
the process existing through the Office of the National
Coordinator for Health Information Technology may be applied
towards meeting the requirement of paragraph (1).
``(3) Subsequent standards activity.--The Secretary shall
adopt additional standards, implementation specifications, and
certification criteria as necessary and consistent with the
schedule published under section 3003(b)(2).
[[Page 123 STAT. 241]]
``SEC. 3005. APPLICATION <<NOTE: 42 USC 300jj-15.>> AND USE OF ADOPTED
STANDARDS AND IMPLEMENTATION SPECIFICATIONS BY FEDERAL
AGENCIES.
``For requirements relating to the application and use by Federal
agencies of the standards and implementation specifications adopted
under section 3004, see section 13111 of the Health Information
Technology for Economic and Clinical Health Act.
``SEC. 3006. VOLUNTARY <<NOTE: 42 USC 300jj-16.>> APPLICATION AND USE OF
ADOPTED STANDARDS AND IMPLEMENTATION SPECIFICATIONS BY
PRIVATE ENTITIES.
``(a) In General.--Except as provided under section 13112 of the
HITECH Act, nothing in such Act or in the amendments made by such Act
shall be construed--
``(1) to require a private entity to adopt or comply with a
standard or implementation specification adopted under section
3004; or
``(2) to provide a Federal agency authority, other than the
authority such agency may have under other provisions of law, to
require a private entity to comply with such a standard or
implementation specification.
``(b) Rule of Construction.--Nothing in this subtitle shall be
construed to require that a private entity that enters into a contract
with the Federal Government apply or use the standards and
implementation specifications adopted under section 3004 with respect to
activities not related to the contract.
``SEC. 3007. FEDERAL <<NOTE: 42 USC 300jj-17.>> HEALTH INFORMATION
TECHNOLOGY.
``(a) In General.--The National Coordinator shall support the
development and routine updating of qualified electronic health record
technology (as defined in section 3000) consistent with subsections (b)
and (c) and make available such qualified electronic health record
technology unless the Secretary determines through an assessment that
the needs and demands of providers are being substantially and
adequately met through the marketplace.
``(b) Certification.--In making such electronic health record
technology publicly available, the National Coordinator shall ensure
that the qualified electronic health record technology described in
subsection (a) is certified under the program developed under section
3001(c)(3) to be in compliance with applicable standards adopted under
section 3003(a).
``(c) Authorization To Charge a Nominal Fee.--The National
Coordinator may impose a nominal fee for the adoption by a health care
provider of the health information technology system developed or
approved under subsection (a) and (b). Such fee shall take into account
the financial circumstances of smaller providers, low income providers,
and providers located in rural or other medically underserved areas.
``(d) Rule of Construction.--Nothing in this section shall be
construed to require that a private or government entity adopt or use
the technology provided under this section.
``SEC. 3008. <<NOTE: 42 USC 300jj-18.>> 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
[[Page 123 STAT. 242]]
date of the enactment of this title shall be transferred to the National
Coordinator appointed under section 3001(a) and the Office of such
National Coordinator as of the date of the enactment of this title.
``(b) National EHealth Collaborative.--Nothing in sections 3002 or
3003 or this subsection shall be construed as prohibiting the AHIC
Successor, Inc. doing business as the National eHealth Collaborative
from modifying its charter, duties, membership, and any other structure
or function required to be consistent with section 3002 and 3003 so as
to allow the Secretary to recognize such AHIC Successor, Inc. as the HIT
Policy Committee or the HIT Standards Committee.
``(c) Consistency of Recommendations.--In carrying out section
3003(b)(1)(A), until recommendations are made by the HIT Policy
Committee, recommendations of the HIT Standards Committee shall be
consistent with the most recent recommendations made by such AHIC
Successor, Inc.
``SEC. 3009. MISCELLANEOUS <<NOTE: 42 USC 300jj-19.>> PROVISIONS.
``(a) Relation to HIPAA Privacy and Security Law.--
``(1) In general.--With respect to the relation of this
title to HIPAA privacy and security law:
``(A) This title may not be construed as having any
effect on the authorities of the Secretary under HIPAA
privacy and security law.
``(B) The purposes of this title include ensuring
that the health information technology standards and
implementation specifications adopted under section 3004
take into account the requirements of HIPAA privacy and
security law.
``(2) Definition.--For purposes of this section, the term
`HIPAA privacy and security law' means--
``(A) the provisions of part C of title XI of the
Social Security Act, section 264 of the Health Insurance
Portability and Accountability Act of 1996, and subtitle
D of title IV of the Health Information Technology for
Economic and Clinical Health Act; and
``(B) regulations under such provisions.
``(b) Flexibility.--In administering the provisions of this title,
the Secretary shall have flexibility in applying the definition of
health care provider under section 3000(3), including the authority to
omit certain entities listed in such definition when applying such
definition under this title, where appropriate.''.
SEC. 13102. TECHNICAL AMENDMENT.
Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) is
amended by striking ``or C'' and inserting ``C, or D''.
PART 2--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY
STANDARDS; REPORTS
SEC. 13111. COORDINATION <<NOTE: 42 USC 17901.>> OF FEDERAL ACTIVITIES
WITH ADOPTED STANDARDS AND IMPLEMENTATION SPECIFICATIONS.
(a) Spending on Health Information Technology Systems.--As each
agency (as defined by the Director of the Office of Management and
Budget, in consultation with the Secretary
[[Page 123 STAT. 243]]
of Health and Human Services) implements, acquires, or upgrades health
information technology systems used for the direct exchange of
individually identifiable health information between agencies and with
non-Federal entities, it shall utilize, where available, health
information technology systems and products that meet standards and
implementation specifications adopted under section 3004 of the Public
Health Service Act, as added by section 13101.
(b) Federal Information Collection Activities.--With respect to a
standard or implementation specification adopted under section 3004 of
the Public Health Service Act, as added by section 13101, the President
shall take measures to ensure that Federal activities involving the
broad collection and submission of health information are consistent
with such standard or implementation specification, respectively, within
three years after the date of such adoption.
(c) Application of Definitions.--The definitions contained in
section 3000 of the Public Health Service Act, as added by section
13101, shall apply for purposes of this part.
SEC. 13112. APPLICATION <<NOTE: 42 USC 17902.>> TO PRIVATE ENTITIES.
Each agency (as defined in such Executive Order issued on August 22,
2006, relating to promoting quality and efficient health care in Federal
government administered or sponsored health care programs) shall require
in contracts or agreements with health care providers, health plans, or
health insurance issuers that as each provider, plan, or issuer
implements, acquires, or upgrades health information technology systems,
it shall utilize, where available, health information technology systems
and products that meet standards and implementation specifications
adopted under section 3004 of the Public Health Service Act, as added by
section 13101.
SEC. 13113. STUDY <<NOTE: 42 USC 17903.>> AND REPORTS.
(a) Report on Adoption of Nationwide System.--Not later than 2 years
after the date of the enactment of this Act and annually thereafter, the
Secretary of Health and Human Services shall submit to the appropriate
committees of jurisdiction of the House of Representatives and the
Senate a report that--
(1) describes the specific actions that have been taken by
the Federal Government and private entities to facilitate the
adoption of a nationwide system for the electronic use and
exchange of health information;
(2) describes barriers to the adoption of such a nationwide
system; and
(3) contains recommendations to achieve full implementation
of such a nationwide system.
(b) Reimbursement Incentive Study and Report.--
(1) Study.--The Secretary of Health and Human Services shall
carry out, or contract with a private entity to carry out, a
study that examines methods to create efficient reimbursement
incentives for improving health care quality in Federally
qualified health centers, rural health clinics, and free
clinics.
(2) Report.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to the appropriate committees of
jurisdiction of the House of Representatives and the Senate a
report on the study carried out under paragraph (1).
(c) Aging Services Technology Study and Report.--
[[Page 123 STAT. 244]]
(1) In <<NOTE: Contracts.>> general.--The Secretary of
Health and Human Services shall carry out, or contract with a
private entity to carry out, a study of matters relating to the
potential use of new aging services technology to assist
seniors, individuals with disabilities, and their caregivers
throughout the aging process.
(2) Matters to be studied.--The study under paragraph (1)
shall include--
(A) an evaluation of--
(i) methods for identifying current, emerging,
and future health technology that can be used to
meet the needs of seniors and individuals with
disabilities and their caregivers across all aging
services settings, as specified by the Secretary;
(ii) methods for fostering scientific
innovation with respect to aging services
technology within the business and academic
communities; and
(iii) developments in aging services
technology in other countries that may be applied
in the United States; and
(B) identification of--
(i) barriers to innovation in aging services
technology and devising strategies for removing
such barriers; and
(ii) barriers to the adoption of aging
services technology by health care providers and
consumers and devising strategies to removing such
barriers.
(3) Report.--Not later than 24 months after the date of the
enactment of this Act, the Secretary shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and of the Senate a report on the study carried
out under paragraph (1).
(4) Definitions.--For purposes of this subsection:
(A) Aging services technology.--The term ``aging
services technology'' means health technology that meets
the health care needs of seniors, individuals with
disabilities, and the caregivers of such seniors and
individuals.
(B) Senior.--The term ``senior'' has such meaning as
specified by the Secretary.
Subtitle B--Testing of Health Information Technology
SEC. 13201. NATIONAL <<NOTE: 42 USC 17911.>> INSTITUTE FOR STANDARDS AND
TECHNOLOGY TESTING.
(a) Pilot Testing of Standards and Implementation Specifications.--
In coordination with the HIT Standards Committee established under
section 3003 of the Public Health Service Act, as added by section
13101, with respect to the development of standards and implementation
specifications under such section, the Director of the National
Institute for Standards and Technology shall test such standards and
implementation specifications, as appropriate, in order to assure the
efficient implementation and use of such standards and implementation
specifications.
(b) Voluntary Testing Program.--In coordination with the HIT
Standards Committee established under section 3003 of the
[[Page 123 STAT. 245]]
Public Health Service Act, as added by section 13101, with respect to
the development of standards and implementation specifications under
such section, the Director of the National Institute of Standards and
Technology shall support the establishment of a conformance testing
infrastructure, including the development of technical test beds. The
development of this conformance testing infrastructure may include a
program to accredit independent, non-Federal laboratories to perform
testing.
SEC. 13202. RESEARCH <<NOTE: 42 USC 17912.>> AND DEVELOPMENT PROGRAMS.
(a) Health Care Information Enterprise Integration Research
Centers.--
(1) In general.--The <<NOTE: Establishment.>> Director of
the National Institute of Standards and Technology, in
consultation with the Director of the National Science
Foundation and other appropriate Federal agencies, shall
establish a program of assistance to institutions of higher
education (or consortia thereof which may include nonprofit
entities and Federal Government laboratories) to establish
multidisciplinary Centers for Health Care Information Enterprise
Integration.
(2) Review; competition.--Grants <<NOTE: Grants.>> shall be
awarded under this subsection on a merit-reviewed, competitive
basis.
(3) Purpose.--The purposes of the Centers described in
paragraph (1) shall be--
(A) to generate innovative approaches to health care
information enterprise integration by conducting
cutting-edge, multidisciplinary research on the systems
challenges to health care delivery; and
(B) the development and use of health information
technologies and other complementary fields.
(4) Research areas.--Research areas may include--
(A) interfaces between human information and
communications technology systems;
(B) voice-recognition systems;
(C) software that improves interoperability and
connectivity among health information systems;
(D) software dependability in systems critical to
health care delivery;
(E) measurement of the impact of information
technologies on the quality and productivity of health
care;
(F) health information enterprise management;
(G) health information technology security and
integrity; and
(H) relevant health information technology to reduce
medical errors.
(5) Applications.--An institution of higher education (or a
consortium thereof) seeking funding under this subsection shall
submit an application to the Director of the National Institute
of Standards and Technology at such time, in such manner, and
containing such information as the Director may require. The
application shall include, at a minimum, a description of--
(A) the research projects that will be undertaken by
the Center established pursuant to assistance under
paragraph (1) and the respective contributions of the
participating entities;
[[Page 123 STAT. 246]]
(B) how the Center will promote active collaboration
among scientists and engineers from different
disciplines, such as information technology, biologic
sciences, management, social sciences, and other
appropriate disciplines;
(C) technology transfer activities to demonstrate
and diffuse the research results, technologies, and
knowledge; and
(D) how the Center will contribute to the education
and training of researchers and other professionals in
fields relevant to health information enterprise
integration.
(b) National Information Technology Research and Development
Program.--The National High-Performance Computing Program established by
section 101 of the High-Performance Computing Act of 1991 (15 U.S.C.
5511) shall include Federal research and development programs related to
health information technology.
Subtitle C--Grants and Loans Funding
SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.
Title XXX of the Public Health Service Act, as added by section
13101, is amended by adding at the end the following new subtitle:
``Subtitle B--Incentives for the Use of Health Information Technology
``SEC. 3011. IMMEDIATE <<NOTE: 42 USC 300jj-31.>> FUNDING TO STRENGTHEN
THE HEALTH INFORMATION TECHNOLOGY INFRASTRUCTURE.
``(a) In General.--The Secretary shall, using amounts appropriated
under section 3018, invest in the infrastructure necessary to allow for
and promote the electronic exchange and use of health information for
each individual in the United States consistent with the goals outlined
in the strategic plan developed by the National Coordinator (and as
available) under section 3001. The Secretary shall invest funds through
the different agencies with expertise in such goals, such as the Office
of the National Coordinator for Health Information Technology, the
Health Resources and Services Administration, the Agency for Healthcare
Research and Quality, the Centers of Medicare & Medicaid Services, the
Centers for Disease Control and Prevention, and the Indian Health
Service to support the following:
``(1) Health information technology architecture that will
support the nationwide electronic exchange and use of health
information in a secure, private, and accurate manner, including
connecting health information exchanges, and which may include
updating and implementing the infrastructure necessary within
different agencies of the Department of Health and Human
Services to support the electronic use and exchange of health
information.
``(2) Development and adoption of appropriate certified
electronic health records for categories of health care
providers not eligible for support under title XVIII or XIX of
the Social Security Act for the adoption of such records.
``(3) Training on and dissemination of information on best
practices to integrate health information technology, including
[[Page 123 STAT. 247]]
electronic health records, into a provider's delivery of care,
consistent with best practices learned from the Health
Information Technology Research Center developed under section
3012(b), including community health centers receiving assistance
under section 330, covered entities under section 340B, and
providers participating in one or more of the programs under
titles XVIII, XIX, and XXI of the Social Security Act (relating
to Medicare, Medicaid, and the State Children's Health Insurance
Program).
``(4) Infrastructure and tools for the promotion of
telemedicine, including coordination among Federal agencies in
the promotion of telemedicine.
``(5) Promotion of the interoperability of clinical data
repositories or registries.
``(6) Promotion of technologies and best practices that
enhance the protection of health information by all holders of
individually identifiable health information.
``(7) Improvement and expansion of the use of health
information technology by public health departments.
``(b) Coordination.--The Secretary shall ensure funds under this
section are used in a coordinated manner with other health information
promotion activities.
``(c) Additional Use of Funds.--In addition to using funds as
provided in subsection (a), the Secretary may use amounts appropriated
under section 3018 to carry out health information technology activities
that are provided for under laws in effect on the date of the enactment
of this title.
``(d) Standards for Acquisition of Health Information Technology.--
To the greatest extent practicable, the Secretary shall ensure that
where funds are expended under this section for the acquisition of
health information technology, such funds shall be used to acquire
health information technology that meets applicable standards adopted
under section 3004. Where it is not practicable to expend funds on
health information technology that meets such applicable standards, the
Secretary shall ensure that such health information technology meets
applicable standards otherwise adopted by the Secretary.
``SEC. 3012. HEALTH <<NOTE: 42 USC 300jj-32.>> INFORMATION TECHNOLOGY
IMPLEMENTATION ASSISTANCE.
``(a) Health Information Technology Extension Program.--To assist
health care providers to adopt, implement, and effectively use certified
EHR technology that allows for the electronic exchange and use of health
information, the Secretary, acting through the Office of the National
Coordinator, shall establish a health information technology extension
program to provide health information technology assistance services to
be carried out through the Department of Health and Human
Services. <<NOTE: Consultation.>> The National Coordinator shall consult
with other Federal agencies with demonstrated experience and expertise
in information technology services, such as the National Institute of
Standards and Technology, in developing and implementing this program.
``(b) Health Information Technology Research Center.--
``(1) In general.--The <<NOTE: Establishment.>> 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
[[Page 123 STAT. 248]]
efforts to adopt, implement, and effectively utilize health
information technology that allows for the electronic exchange
and use of information in compliance with standards,
implementation specifications, and certification criteria
adopted under section 3004.
``(2) Input.--The Center shall incorporate input from--
``(A) other Federal agencies with demonstrated
experience and expertise in information technology
services such as the National Institute of Standards and
Technology;
``(B) users of health information technology, such
as providers and their support and clerical staff and
others involved in the care and care coordination of
patients, from the health care and health information
technology industry; and
``(C) others as appropriate.
``(3) Purposes.--The purposes of the Center are to--
``(A) provide a forum for the exchange of knowledge
and experience;
``(B) accelerate the transfer of lessons learned
from existing public and private sector initiatives,
including those currently receiving Federal financial
support;
``(C) assemble, analyze, and widely disseminate
evidence and experience related to the adoption,
implementation, and effective use of health information
technology that allows for the electronic exchange and
use of information including through the regional
centers described in subsection (c);
``(D) provide technical assistance for the
establishment and evaluation of regional and local
health information networks to facilitate the electronic
exchange of information across health care settings and
improve the quality of health care;
``(E) provide technical assistance for the
development and dissemination of solutions to barriers
to the exchange of electronic health information; and
``(F) learn about effective strategies to adopt and
utilize health information technology in medically
underserved communities.
``(c) Health Information Technology Regional Extension Centers.--
``(1) In general.--The Secretary shall provide assistance
for the creation and support of regional centers (in this
subsection referred to as `regional centers') to provide
technical assistance and disseminate best practices and other
information learned from the Center to support and accelerate
efforts to adopt, implement, and effectively utilize health
information technology that allows for the electronic exchange
and use of information in compliance with standards,
implementation specifications, and certification criteria
adopted under section 3004. Activities conducted under this
subsection shall be consistent with the strategic plan developed
by the National Coordinator, (and, as available) under section
3001.
``(2) Affiliation.--Regional centers shall be affiliated
with any United States-based nonprofit institution or
organization, or group thereof, that applies and is awarded
financial assistance under this section. Individual awards shall
be decided on the basis of merit.
[[Page 123 STAT. 249]]
``(3) Objective.--The objective of the regional centers is
to enhance and promote the adoption of health information
technology through--
``(A) assistance with the implementation, effective
use, upgrading, and ongoing maintenance of health
information technology, including electronic health
records, to healthcare providers nationwide;
``(B) broad participation of individuals from
industry, universities, and State governments;
``(C) active dissemination of best practices and
research on the implementation, effective use,
upgrading, and ongoing maintenance of health information
technology, including electronic health records, to
health care providers in order to improve the quality of
healthcare and protect the privacy and security of
health information;
``(D) participation, to the extent practicable, in
health information exchanges;
``(E) utilization, when appropriate, of the
expertise and capability that exists in Federal agencies
other than the Department; and
``(F) integration of health information technology,
including electronic health records, into the initial
and ongoing training of health professionals and others
in the healthcare industry that would be instrumental to
improving the quality of healthcare through the smooth
and accurate electronic use and exchange of health
information.
``(4) Regional assistance.--Each regional center shall aim
to provide assistance and education to all providers in a
region, but shall prioritize any direct assistance first to the
following:
``(A) Public or not-for-profit hospitals or critical
access hospitals.
``(B) Federally qualified health centers (as defined
in section 1861(aa)(4) of the Social Security Act).
``(C) Entities that are located in rural and other
areas that serve uninsured, underinsured, and medically
underserved individuals (regardless of whether such area
is urban or rural).
``(D) Individual or small group practices (or a
consortium thereof) that are primarily focused on
primary care.
``(5) Financial support.--The Secretary may provide
financial support to any regional center created under this
subsection for a period not to exceed four years. The Secretary
may not provide more than 50 percent of the capital and annual
operating and maintenance funds required to create and maintain
such a center, except in an instance of national economic
conditions which would render this cost-share requirement
detrimental to the program and upon notification to Congress as
to the justification to waive the cost-share requirement.
``(6) Notice of program description and availability of
funds.--The Secretary <<NOTE: Federal Register,
publication. Deadline.>> shall publish in the Federal Register,
not later than 90 days after the date of the enactment of this
title, a draft description of the program for establishing
regional centers under this subsection. Such description shall
include the following:
``(A) A detailed explanation of the program and the
programs goals.
[[Page 123 STAT. 250]]
``(B) Procedures <<NOTE: Procedures.>> to be
followed by the applicants.
``(C) Criteria <<NOTE: Criteria.>> for determining
qualified applicants.
``(D) Maximum support levels expected to be
available to centers under the program.
``(7) Application review.--The Secretary shall subject each
application under this subsection to merit review. In making a
decision whether to approve such application and provide
financial support, the Secretary shall consider at a minimum the
merits of the application, including those portions of the
application regarding--
``(A) the ability of the applicant to provide
assistance under this subsection and utilization of
health information technology appropriate to the needs
of particular categories of health care providers;
``(B) the types of service to be provided to health
care providers;
``(C) geographical diversity and extent of service
area; and
``(D) the percentage of funding and amount of in-
kind commitment from other sources.
``(8) Biennial evaluation.--Each regional center which
receives financial assistance under this subsection shall be
evaluated biennially by an evaluation panel appointed by the
Secretary. Each evaluation panel shall be composed of private
experts, none of whom shall be connected with the center
involved, and of Federal officials. Each evaluation panel shall
measure the involved center's performance against the objective
specified in paragraph (3). The Secretary shall not continue to
provide funding to a regional center unless its evaluation is
overall positive.
``(9) Continuing support.--After the second year of
assistance under this subsection, a regional center may receive
additional support under this subsection if it has received
positive evaluations and a finding by the Secretary that
continuation of Federal funding to the center was in the best
interest of provision of health information technology extension
services.
``SEC. 3013. STATE <<NOTE: 42 USC 300jj-33.>> GRANTS TO PROMOTE HEALTH
INFORMATION TECHNOLOGY.
``(a) In General.--The Secretary, acting through the National
Coordinator, shall establish a program in accordance with this section
to facilitate and expand the electronic movement and use of health
information among organizations according to nationally recognized
standards.
``(b) Planning Grants.--The Secretary may award a grant to a State
or qualified State-designated entity (as described in subsection (f))
that submits an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may specify,
for the purpose of planning activities described in subsection (d).
``(c) Implementation Grants.--The Secretary may award a grant to a
State or qualified State designated entity that--
``(1) has submitted, and the Secretary has approved, a plan
described in subsection (e) (regardless of whether such plan was
prepared using amounts awarded under subsection (b); and
[[Page 123 STAT. 251]]
``(2) submits an application at such time, in such manner,
and containing such information as the Secretary may specify.
``(d) Use of Funds.--Amounts received under a grant under subsection
(c) shall be used to conduct activities to facilitate and expand the
electronic movement and use of health information among organizations
according to nationally recognized standards through activities that
include--
``(1) enhancing broad and varied participation in the
authorized and secure nationwide electronic use and exchange of
health information;
``(2) identifying State or local resources available towards
a nationwide effort to promote health information technology;
``(3) complementing other Federal grants, programs, and
efforts towards the promotion of health information technology;
``(4) providing technical assistance for the development and
dissemination of solutions to barriers to the exchange of
electronic health information;
``(5) promoting effective strategies to adopt and utilize
health information technology in medically underserved
communities;
``(6) assisting patients in utilizing health information
technology;
``(7) encouraging clinicians to work with Health Information
Technology Regional Extension Centers as described in section
3012, to the extent they are available and valuable;
``(8) supporting public health agencies' authorized use of
and access to electronic health information;
``(9) promoting the use of electronic health records for
quality improvement including through quality measures
reporting; and
``(10) such other activities as the Secretary may specify.
``(e) Plan.--
``(1) In general.--A plan described in this subsection is a
plan that describes the activities to be carried out by a State
or by the qualified State-designated entity within such State to
facilitate and expand the electronic movement and use of health
information among organizations according to nationally
recognized standards and implementation specifications.
``(2) Required elements.--A plan described in paragraph (1)
shall--
``(A) be pursued in the public interest;
``(B) be consistent with the strategic plan
developed by the National Coordinator, (and, as
available) under section 3001;
``(C) include a description of the ways the State or
qualified State-designated entity will carry out the
activities described in subsection (b); and
``(D) contain such elements as the Secretary may
require.
``(f) Qualified State-Designated Entity.--For purposes of this
section, to be a qualified State-designated entity, with respect to a
State, an entity shall--
``(1) be designated by the State as eligible to receive
awards under this section;
``(2) be a not-for-profit entity with broad stakeholder
representation on its governing board;
[[Page 123 STAT. 252]]
``(3) demonstrate that one of its principal goals is to use
information technology to improve health care quality and
efficiency through the authorized and secure electronic exchange
and use of health information;
``(4) adopt nondiscrimination and conflict of interest
policies that demonstrate a commitment to open, fair, and
nondiscriminatory participation by stakeholders; and
``(5) conform to such other requirements as the Secretary
may establish.
``(g) Required Consultation.--In carrying out activities described
in subsections (b) and (c), a State or qualified State-designated entity
shall consult with and consider the recommendations of--
``(1) health care providers (including providers that
provide services to low income and underserved populations);
``(2) health plans;
``(3) patient or consumer organizations that represent the
population to be served;
``(4) health information technology vendors;
``(5) health care purchasers and employers;
``(6) public health agencies;
``(7) health professions schools, universities and colleges;
``(8) clinical researchers;
``(9) other users of health information technology such as
the support and clerical staff of providers and others involved
in the care and care coordination of patients; and
``(10) such other entities, as may be determined appropriate
by the Secretary.
``(h) Continuous Improvement.--
The <<NOTE: Deadline. Evaluation.>> Secretary shall annually evaluate
the activities conducted under this section and shall, in awarding
grants under this section, implement the lessons learned from such
evaluation in a manner so that awards made subsequent to each such
evaluation are made in a manner that, in the determination of the
Secretary, will lead towards the greatest improvement in quality of
care, decrease in costs, and the most effective authorized and secure
electronic exchange of health information.
``(i) Required Match.--
``(1) In general.--For a fiscal year (beginning with fiscal
year 2011), the Secretary may not make a grant under this
section to a State unless the State agrees to make available
non-Federal contributions (which may include in-kind
contributions) toward the costs of a grant awarded under
subsection (c) in an amount equal to--
``(A) for fiscal year 2011, not less than $1 for
each $10 of Federal funds provided under the grant;
``(B) for fiscal year 2012, not less than $1 for
each $7 of Federal funds provided under the grant; and
``(C) for fiscal year 2013 and each subsequent
fiscal year, not less than $1 for each $3 of Federal
funds provided under the grant.
``(2) Authority to require state match for fiscal years
before fiscal year 2011.--For any fiscal year during the grant
program under this section before fiscal year 2011, the
Secretary may determine the extent to which there shall be
required a non-Federal contribution from a State receiving a
grant under this section.
[[Page 123 STAT. 253]]
``SEC. 3014. COMPETITIVE <<NOTE: 42 USC 300jj-34.>> GRANTS TO STATES AND
INDIAN TRIBES FOR THE DEVELOPMENT OF LOAN PROGRAMS TO
FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED EHR
TECHNOLOGY.
``(a) In General.--The National Coordinator may award competitive
grants to eligible entities for the establishment of programs for loans
to health care providers to conduct the activities described in
subsection (e).
``(b) Eligible Entity Defined.--For purposes of this subsection, the
term `eligible entity' means a State or Indian tribe (as defined in the
Indian Self-Determination and Education Assistance Act) that--
``(1) submits to the National Coordinator an application at
such time, in such manner, and containing such information as
the National Coordinator may require;
``(2) submits to the National Coordinator a strategic plan
in accordance with subsection (d) and provides to the National
Coordinator assurances that the entity will update such plan
annually in accordance with such subsection;
``(3) provides assurances to the National Coordinator that
the entity will establish a Loan Fund in accordance with
subsection (c);
``(4) provides assurances to the National Coordinator that
the entity will not provide a loan from the Loan Fund to a
health care provider unless the provider agrees to--
``(A) submit <<NOTE: Reports. Deadline.>> reports on
quality measures adopted by the Federal Government (by
not later than 90 days after the date on which such
measures are adopted), to--
``(i) the Administrator of the Centers for
Medicare & Medicaid Services (or his or her
designee), in the case of an entity participating
in the Medicare program under title XVIII of the
Social Security Act or the Medicaid program under
title XIX of such Act; or
``(ii) the Secretary in the case of other
entities;
``(B) demonstrate to the satisfaction of the
Secretary (through criteria established by the
Secretary) that any certified EHR technology purchased,
improved, or otherwise financially supported under a
loan under this section is used to exchange health
information in a manner that, in accordance with law and
standards (as adopted under section 3004) applicable to
the exchange of information, improves the quality of
health care, such as promoting care coordination; and
``(C) comply with such other requirements as the
entity or the Secretary may require;
``(D) include a plan on how health care providers
involved intend to maintain and support the certified
EHR technology over time;
``(E) include a plan on how the health care
providers involved intend to maintain and support the
certified EHR technology that would be purchased with
such loan, including the type of resources expected to
be involved and any such other information as the State
or Indian Tribe, respectively, may require; and
``(5) agrees to provide matching funds in accordance with
subsection (h).
[[Page 123 STAT. 254]]
``(c) Establishment of Fund.--For purposes of subsection (b)(3), an
eligible entity shall establish a certified EHR technology loan fund
(referred to in this subsection as a `Loan Fund') and comply with the
other requirements contained in this section. A grant to an eligible
entity under this section shall be deposited in the Loan Fund
established by the eligible entity. No funds authorized by other
provisions of this title to be used for other purposes specified in this
title shall be deposited in any Loan Fund.
``(d) Strategic Plan.--
``(1) In general.--For purposes of subsection (b)(2), a
strategic plan of an eligible entity under this subsection shall
identify the intended uses of amounts available to the Loan Fund
of such entity.
``(2) Contents.--A strategic plan under paragraph (1), with
respect to a Loan Fund of an eligible entity, shall include for
a year the following:
``(A) A list of the projects to be assisted through
the Loan Fund during such year.
``(B) A description of the criteria and methods
established for the distribution of funds from the Loan
Fund during the year.
``(C) A description of the financial status of the
Loan Fund as of the date of submission of the plan.
``(D) The short-term and long-term goals of the Loan
Fund.
``(e) Use of Funds.--Amounts deposited in a Loan Fund, including
loan repayments and interest earned on such amounts, shall be used only
for awarding loans or loan guarantees, making reimbursements described
in subsection (g)(4)(A), or as a source of reserve and security for
leveraged loans, the proceeds of which are deposited in the Loan Fund
established under subsection (c). Loans under this section may be used
by a health care provider to--
``(1) facilitate the purchase of certified EHR technology;
``(2) enhance the utilization of certified EHR technology
(which may include costs associated with upgrading health
information technology so that it meets criteria necessary to be
a certified EHR technology);
``(3) train personnel in the use of such technology; or
``(4) improve the secure electronic exchange of health
information.
``(f) Types of Assistance.--Except as otherwise limited by
applicable State law, amounts deposited into a Loan Fund under this
section may only be used for the following:
``(1) To award loans that comply with the following:
``(A) The interest rate for each loan shall not
exceed the market interest rate.
``(B) The principal and interest payments on each
loan shall commence not later than 1 year after the date
the loan was awarded, and each loan shall be fully
amortized not later than 10 years after the date of the
loan.
``(C) The Loan Fund shall be credited with all
payments of principal and interest on each loan awarded
from the Loan Fund.
``(2) To guarantee, or purchase insurance for, a local
obligation (all of the proceeds of which finance a project
eligible
[[Page 123 STAT. 255]]
for assistance under this subsection) if the guarantee or
purchase would improve credit market access or reduce the
interest rate applicable to the obligation involved.
``(3) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the eligible entity if the proceeds of the sale of the
bonds will be deposited into the Loan Fund.
``(4) To earn interest on the amounts deposited into the
Loan Fund.
``(5) To make reimbursements described in subsection
(g)(4)(A).
``(g) Administration of Loan Funds.--
``(1) Combined financial administration.--An eligible entity
may (as a convenience and to avoid unnecessary administrative
costs) combine, in accordance with applicable State law, the
financial administration of a Loan Fund established under this
subsection with the financial administration of any other
revolving fund established by the entity if otherwise not
prohibited by the law under which the Loan Fund was established.
``(2) Cost of administering fund.--Each eligible entity may
annually use not to exceed 4 percent of the funds provided to
the entity under a grant under this section to pay the
reasonable costs of the administration of the programs under
this section, including the recovery of reasonable costs
expended to establish a Loan Fund which are incurred after the
date of the enactment of this title.
``(3) Guidance and regulations.--
The <<NOTE: Publication.>> National Coordinator shall publish
guidance and promulgate regulations as may be necessary to carry
out the provisions of this section, including--
``(A) provisions to ensure that each eligible entity
commits and expends funds allotted to the entity under
this section as efficiently as possible in accordance
with this title and applicable State laws; and
``(B) guidance to prevent waste, fraud, and abuse.
``(4) Private sector contributions.--
``(A) In general.--A Loan Fund established under
this section may accept contributions from private
sector entities, except that such entities may not
specify the recipient or recipients of any loan issued
under this subsection. An eligible entity may agree to
reimburse a private sector entity for any contribution
made under this subparagraph, except that the amount of
such reimbursement may not be greater than the principal
amount of the contribution made.
``(B) Availability of information.--An eligible
entity shall make publicly available the identity of,
and amount contributed by, any private sector entity
under subparagraph (A) and may issue letters of
commendation or make other awards (that have no
financial value) to any such entity.
``(h) Matching Requirements.--
``(1) In general.--The National Coordinator may not make a
grant under subsection (a) to an eligible entity unless the
entity agrees to make available (directly or through donations
from public or private entities) non-Federal contributions in
cash to the costs of carrying out the activities for which the
[[Page 123 STAT. 256]]
grant is awarded in an amount equal to not less than $1 for each
$5 of Federal funds provided under the grant.
``(2) Determination of amount of non-federal contribution.--
In determining the amount of non-Federal contributions that an
eligible entity has provided pursuant to subparagraph (A), the
National Coordinator may not include any amounts provided to the
entity by the Federal Government.
``(i) Effective Date.--The Secretary may not make an award under
this section prior to January 1, 2010.
``SEC. 3015. DEMONSTRATION <<NOTE: 42 USC 300jj-35.>> PROGRAM TO
INTEGRATE INFORMATION TECHNOLOGY INTO CLINICAL EDUCATION.
``(a) In General.--The Secretary may award grants under this section
to carry out demonstration projects to develop academic curricula
integrating certified EHR technology in the clinical education of health
professionals. Such awards shall be made on a competitive basis and
pursuant to peer review.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a), an entity shall--
``(1) submit to the Secretary an application at such time,
in such manner, and containing such information as the Secretary
may require;
``(2) submit <<NOTE: Strategic plan.>> to the Secretary a
strategic plan for integrating certified EHR technology in the
clinical education of health professionals to reduce medical
errors, increase access to prevention, reduce chronic diseases,
and enhance health care quality;
``(3) be--
``(A) a school of medicine, osteopathic medicine,
dentistry, or pharmacy, a graduate program in behavioral
or mental health, or any other graduate health
professions school;
``(B) a graduate school of nursing or physician
assistant studies;
``(C) a consortium of two or more schools described
in subparagraph (A) or (B); or
``(D) an institution with a graduate medical
education program in medicine, osteopathic medicine,
dentistry, pharmacy, nursing, or physician assistance
studies;
``(4) provide for the collection of data regarding the
effectiveness of the demonstration project to be funded under
the grant in improving the safety of patients, the efficiency of
health care delivery, and in increasing the likelihood that
graduates of the grantee will adopt and incorporate certified
EHR technology, in the delivery of health care services; and
``(5) provide matching funds in accordance with subsection
(d).
``(c) Use of Funds.--
``(1) In general.--With respect to a grant under subsection
(a), an eligible entity shall--
``(A) use grant funds in collaboration with 2 or
more disciplines; and
``(B) use grant funds to integrate certified EHR
technology into community-based clinical education.
``(2) Limitation.--An eligible entity shall not use amounts
received under a grant under subsection (a) to purchase
hardware, software, or services.
[[Page 123 STAT. 257]]
``(d) Financial Support.--The Secretary may not provide more than 50
percent of the costs of any activity for which assistance is provided
under subsection (a), except in an instance of national economic
conditions which would render the cost-share requirement under this
subsection detrimental to the program and upon notification to Congress
as to the justification to waive the cost-share requirement.
``(e) Evaluation.--The <<NOTE: Publication.>> Secretary shall take
such action as may be necessary to evaluate the projects funded under
this section and publish, make available, and disseminate the results of
such evaluations on as wide a basis as is practicable.
``(f) Reports.--Not later than 1 year after the date of enactment of
this title, and annually thereafter, the Secretary shall submit to the
Committee on Health, Education, Labor, and Pensions and the Committee on
Finance of the Senate, and the Committee on Energy and Commerce of the
House of Representatives a report that--
``(1) describes the specific projects established under this
section; and
``(2) contains recommendations for Congress based on the
evaluation conducted under subsection (e).
``SEC. 3016. INFORMATION <<NOTE: 42 USC 300jj-36.>> TECHNOLOGY
PROFESSIONALS IN HEALTH CARE.
``(a) In General.--The Secretary, in consultation with the Director
of the National Science Foundation, shall provide assistance to
institutions of higher education (or consortia thereof) to establish or
expand medical health informatics education programs, including
certification, undergraduate, and masters degree programs, for both
health care and information technology students to ensure the rapid and
effective utilization and development of health information technologies
(in the United States health care infrastructure).
``(b) Activities.--Activities for which assistance may be provided
under subsection (a) may include the following:
``(1) Developing and revising curricula in medical health
informatics and related disciplines.
``(2) Recruiting and retaining students to the program
involved.
``(3) Acquiring equipment necessary for student instruction
in these programs, including the installation of testbed
networks for student use.
``(4) Establishing or enhancing bridge programs in the
health informatics fields between community colleges and
universities.
``(c) Priority.--In providing assistance under subsection (a), the
Secretary shall give preference to the following:
``(1) Existing education and training programs.
``(2) Programs designed to be completed in less than six
months.
``SEC. 3017. GENERAL <<NOTE: 42 USC 300jj-37.>> GRANT AND LOAN
PROVISIONS.
``(a) Reports.--The Secretary may require that an entity receiving
assistance under this subtitle shall submit to the Secretary, not later
than the date that is 1 year after the date of receipt of such
assistance, a report that includes--
[[Page 123 STAT. 258]]
``(1) an analysis of the effectiveness of the activities for
which the entity receives such assistance, as compared to the
goals for such activities; and
``(2) an analysis of the impact of the project on health
care quality and safety.
``(b) Requirement to Improve Quality of Care and Decrease in
Costs.--The <<NOTE: Evaluation. Deadline.>> National Coordinator shall
annually evaluate the activities conducted under this subtitle and
shall, in awarding grants, implement the lessons learned from such
evaluation in a manner so that awards made subsequent to each such
evaluation are made in a manner that, in the determination of the
National Coordinator, will result in the greatest improvement in the
quality and efficiency of health care.
``SEC. 3018. AUTHORIZATION <<NOTE: 42 USC 300jj-38.>> FOR
APPROPRIATIONS.
``For the purposes of carrying out this subtitle, there is
authorized to be appropriated such sums as may be necessary for each of
the fiscal years 2009 through 2013.''.
Subtitle D--Privacy
SEC. 13400. <<NOTE: 42 USC 17921.>> DEFINITIONS.
In this subtitle, except as specified otherwise:
(1) Breach.--
(A) In general.--The term ``breach'' means the
unauthorized acquisition, access, use, or disclosure of
protected health information which compromises the
security or privacy of such information, except where an
unauthorized person to whom such information is
disclosed would not reasonably have been able to retain
such information.
(B) Exceptions.--The term ``breach'' does not
include--
(i) any unintentional acquisition, access, or
use of protected health information by an employee
or individual acting under the authority of a
covered entity or business associate if--
(I) such acquisition, access, or use
was made in good faith and within the
course and scope of the employment or
other professional relationship of such
employee or individual, respectively,
with the covered entity or business
associate; and
(II) such information is not further
acquired, accessed, used, or disclosed
by any person; or
(ii) any inadvertent disclosure from an
individual who is otherwise authorized to access
protected health information at a facility
operated by a covered entity or business associate
to another similarly situated individual at same
facility; and
(iii) any such information received as a
result of such disclosure is not further acquired,
accessed, used, or disclosed without authorization
by any person.
(2) Business associate.--The term ``business associate'' has
the meaning given such term in section 160.103 of title 45, Code
of Federal Regulations.
(3) Covered entity.--The term ``covered entity'' has the
meaning given such term in section 160.103 of title 45, Code of
Federal Regulations.
[[Page 123 STAT. 259]]
(4) Disclose.--The terms ``disclose'' and ``disclosure''
have the meaning given the term ``disclosure'' in section
160.103 of title 45, Code of Federal Regulations.
(5) Electronic health record.--The term ``electronic health
record'' means an electronic record of health-related
information on an individual that is created, gathered, managed,
and consulted by authorized health care clinicians and staff.
(6) Health care operations.--The term ``health care
operation'' has the meaning given such term in section 164.501
of title 45, Code of Federal Regulations.
(7) Health care provider.--The term ``health care provider''
has the meaning given such term in section 160.103 of title 45,
Code of Federal Regulations.
(8) Health plan.--The term ``health plan'' has the meaning
given such term in section 160.103 of title 45, Code of Federal
Regulations.
(9) National coordinator.--The term ``National Coordinator''
means the head of the Office of the National Coordinator for
Health Information Technology established under section 3001(a)
of the Public Health Service Act, as added by section 13101.
(10) Payment.--The term ``payment'' has the meaning given
such term in section 164.501 of title 45, Code of Federal
Regulations.
(11) Personal health record.--The term ``personal health
record'' means an electronic record of PHR identifiable health
information (as defined in section 13407(f)(2)) on an individual
that can be drawn from multiple sources and that is managed,
shared, and controlled by or primarily for the individual.
(12) Protected health information.--The term ``protected
health information'' has the meaning given such term in section
160.103 of title 45, Code of Federal Regulations.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(14) Security.--The term ``security'' has the meaning given
such term in section 164.304 of title 45, Code of Federal
Regulations.
(15) State.--The term ``State'' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana Islands.
(16) Treatment.--The term ``treatment'' has the meaning
given such term in section 164.501 of title 45, Code of Federal
Regulations.
(17) Use.--The term ``use'' has the meaning given such term
in section 160.103 of title 45, Code of Federal Regulations.
(18) Vendor of personal health records.--The term ``vendor
of personal health records'' means an entity, other than a
covered entity (as defined in paragraph (3)), that offers or
maintains a personal health record.
[[Page 123 STAT. 260]]
PART 1--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS
SEC. 13401. APPLICATION <<NOTE: 42 USC 17931.>> OF SECURITY PROVISIONS
AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES;
ANNUAL GUIDANCE ON SECURITY PROVISIONS.
(a) Application of Security Provisions.--Sections 164.308, 164.310,
164.312, and 164.316 of title 45, Code of Federal Regulations, shall
apply to a business associate of a covered entity in the same manner
that such sections apply to the covered entity. The additional
requirements of this title that relate to security and that are made
applicable with respect to covered entities shall also be applicable to
such a business associate and shall be incorporated into the business
associate agreement between the business associate and the covered
entity.
(b) Application of Civil and Criminal Penalties.--In the case of a
business associate that violates any security provision specified in
subsection (a), sections 1176 and 1177 of the Social Security Act (42
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
respect to such violation in the same manner such sections apply to a
covered entity that violates such security provision.
(c) Annual Guidance.--For the first year beginning after the date of
the enactment of this Act and annually thereafter, the Secretary of
Health and Human Services shall, after consultation with stakeholders,
annually issue guidance on the most effective and appropriate technical
safeguards for use in carrying out the sections referred to in
subsection (a) and the security standards in subpart C of part 164 of
title 45, Code of Federal Regulations, including the use of standards
developed under section 3002(b)(2)(B)(vi) of the Public Health Service
Act, as added by section 13101 of this Act, as such provisions are in
effect as of the date before the enactment of this Act.
SEC. 13402. NOTIFICATION <<NOTE: 42 USC 17932.>> IN THE CASE OF BREACH.
(a) In General.--A covered entity that accesses, maintains, retains,
modifies, records, stores, destroys, or otherwise holds, uses, or
discloses unsecured protected health information (as defined in
subsection (h)(1)) shall, in the case of a breach of such information
that is discovered by the covered entity, notify each individual whose
unsecured protected health information has been, or is reasonably
believed by the covered entity to have been, accessed, acquired, or
disclosed as a result of such breach.
(b) Notification of Covered Entity by Business Associate.--A
business associate of a covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds, uses,
or discloses unsecured protected health information shall, following the
discovery of a breach of such information, notify the covered entity of
such breach. Such notice shall include the identification of each
individual whose unsecured protected health information has been, or is
reasonably believed by the business associate to have been, accessed,
acquired, or disclosed during such breach.
(c) Breaches Treated as Discovered.--For purposes of this section, a
breach shall be treated as discovered by a covered entity or by a
business associate as of the first day on which such breach is known to
such entity or associate, respectively, (including any
[[Page 123 STAT. 261]]
person, other than the individual committing the breach, that is an
employee, officer, or other agent of such entity or associate,
respectively) or should reasonably have been known to such entity or
associate (or person) to have occurred.
(d) Timeliness of Notification.--
(1) In general.--Subject <<NOTE: Deadline.>> to subsection
(g), all notifications required under this section shall be made
without unreasonable delay and in no case later than 60 calendar
days after the discovery of a breach by the covered entity
involved (or business associate involved in the case of a
notification required under subsection (b)).
(2) Burden of proof.--The covered entity involved (or
business associate involved in the case of a notification
required under subsection (b)), shall have the burden of
demonstrating that all notifications were made as required under
this part, including evidence demonstrating the necessity of any
delay.
(e) Methods of Notice.--
(1) Individual notice.--Notice required under this section
to be provided to an individual, with respect to a breach, shall
be provided promptly and in the following form:
(A) Written notification by first-class mail to the
individual (or the next of kin of the individual if the
individual is deceased) at the last known address of the
individual or the next of kin, respectively, or, if
specified as a preference by the individual, by
electronic mail. The notification may be provided in one
or more mailings as information is available.
(B) In <<NOTE: Web posting.>> the case in which
there is insufficient, or out-of-date contact
information (including a phone number, email address, or
any other form of appropriate communication) that
precludes direct written (or, if specified by the
individual under subparagraph (A), electronic)
notification to the individual, a substitute form of
notice shall be provided, including, in the case that
there are 10 or more individuals for which there is
insufficient or out-of-date contact information, a
conspicuous posting for a period determined by the
Secretary on the home page of the Web site of the
covered entity involved or notice in major print or
broadcast media, including major media in geographic
areas where the individuals affected by the breach
likely reside. Such a notice in media or web posting
will include a toll-free phone number where an
individual can learn whether or not the individual's
unsecured protected health information is possibly
included in the breach.
(C) In any case deemed by the covered entity
involved to require urgency because of possible imminent
misuse of unsecured protected health information, the
covered entity, in addition to notice provided under
subparagraph (A), may provide information to individuals
by telephone or other means, as appropriate.
(2) Media notice.--Notice shall be provided to prominent
media outlets serving a State or jurisdiction, following the
discovery of a breach described in subsection (a), if the
unsecured protected health information of more than 500
residents of such State or jurisdiction is, or is reasonably
believed to have been, accessed, acquired, or disclosed during
such breach.
[[Page 123 STAT. 262]]
(3) Notice to secretary.--Notice shall be provided to the
Secretary by covered entities of unsecured protected health
information that has been acquired or disclosed in a breach. If
the breach was with respect to 500 or more individuals than such
notice must be provided immediately. If the breach was with
respect to less than 500 individuals, the covered entity may
maintain a log of any such breach occurring and annually submit
such a log to the Secretary documenting such breaches occurring
during the year involved.
(4) Posting <<NOTE: List.>> on hhs public website.--The
Secretary shall make available to the public on the Internet
website of the Department of Health and Human Services a list
that identifies each covered entity involved in a breach
described in subsection (a) in which the unsecured protected
health information of more than 500 individuals is acquired or
disclosed.
(f) Content of Notification.--Regardless of the method by which
notice is provided to individuals under this section, notice of a breach
shall include, to the extent possible, the following:
(1) A brief description of what happened, including the date
of the breach and the date of the discovery of the breach, if
known.
(2) A description of the types of unsecured protected health
information that were involved in the breach (such as full name,
Social Security number, date of birth, home address, account
number, or disability code).
(3) The steps individuals should take to protect themselves
from potential harm resulting from the breach.
(4) A brief description of what the covered entity involved
is doing to investigate the breach, to mitigate losses, and to
protect against any further breaches.
(5) Contact procedures for individuals to ask questions or
learn additional information, which shall include a toll-free
telephone number, an e-mail address, Web site, or postal
address.
(g) Delay of Notification Authorized for Law Enforcement Purposes.--
If a law enforcement official determines that a notification, notice, or
posting required under this section would impede a criminal
investigation or cause damage to national security, such notification,
notice, or posting shall be delayed in the same manner as provided under
section 164.528(a)(2) of title 45, Code of Federal Regulations, in the
case of a disclosure covered under such section.
(h) Unsecured Protected Health Information.--
(1) Definition.--
(A) In general.--Subject to subparagraph (B), for
purposes of this section, the term ``unsecured protected
health information'' means protected health information
that is not secured through the use of a technology or
methodology specified by the Secretary in the guidance
issued under paragraph (2).
(B) Exception in case timely guidance not issued.--
In the case that the Secretary does not issue guidance
under paragraph (2) by the date specified in such
paragraph, for purposes of this section, the term
``unsecured protected health information'' shall mean
protected health information that is not secured by a
technology standard that renders protected health
information unusable,
[[Page 123 STAT. 263]]
unreadable, or indecipherable to unauthorized
individuals and is developed or endorsed by a standards
developing organization that is accredited by the
American National Standards Institute.
(2) Guidance.--For <<NOTE: Deadlines.>> purposes of
paragraph (1) and section 13407(f)(3), not later than the date
that is 60 days after the date of the enactment of this Act, the
Secretary shall, after consultation with stakeholders, issue
(and annually update) guidance specifying the technologies and
methodologies that render protected health information unusable,
unreadable, or indecipherable to unauthorized individuals,
including the use of standards developed under section
3002(b)(2)(B)(vi) of the Public Health Service Act, as added by
section 13101 of this Act.
(i) Report to Congress on Breaches.--
(1) In general.--Not later than 12 months after the date of
the enactment of this Act and annually thereafter, the Secretary
shall prepare and submit to the Committee on Finance and the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Ways and Means and the Committee on
Energy and Commerce of the House of Representatives a report
containing the information described in paragraph (2) regarding
breaches for which notice was provided to the Secretary under
subsection (e)(3).
(2) Information.--The information described in this
paragraph regarding breaches specified in paragraph (1) shall
include--
(A) the number and nature of such breaches; and
(B) actions taken in response to such breaches.
(j) Regulations; Effective Date.--To carry out this section, the
Secretary of Health and Human Services shall promulgate interim final
regulations by not later than the date that is 180 days after the date
of the enactment of this title. <<NOTE: Applicability.>> The provisions
of this section shall apply to breaches that are discovered on or after
the date that is 30 days after the date of publication of such interim
final regulations.
SEC. 13403. EDUCATION <<NOTE: 42 USC 17933.>> ON HEALTH INFORMATION
PRIVACY.
(a) Regional Office Privacy Advisors.--
Not <<NOTE: Deadline. Designation.>> later than 6 months after the date
of the enactment of this Act, the Secretary shall designate an
individual in each regional office of the Department of Health and Human
Services to offer guidance and education to covered entities, business
associates, and individuals on their rights and responsibilities related
to Federal privacy and security requirements for protected health
information.
(b) Education Initiative on Uses of Health Information.--
Not <<NOTE: Deadline.>> later than 12 months after the date of the
enactment of this Act, the Office for Civil Rights within the Department
of Health and Human Services shall develop and maintain a multi-faceted
national education initiative to enhance public transparency regarding
the uses of protected health information, including programs to educate
individuals about the potential uses of their protected health
information, the effects of such uses, and the rights of individuals
with respect to such uses. Such programs shall be conducted in a variety
of languages and present information in a clear and understandable
manner.
[[Page 123 STAT. 264]]
SEC. 13404. APPLICATION <<NOTE: 42 USC 17934.>> OF PRIVACY PROVISIONS
AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES.
(a) Application of Contract Requirements.--In the case of a business
associate of a covered entity that obtains or creates protected health
information pursuant to a written contract (or other written
arrangement) described in section 164.502(e)(2) of title 45, Code of
Federal Regulations, with such covered entity, the business associate
may use and disclose such protected health information only if such use
or disclosure, respectively, is in compliance with each applicable
requirement of section 164.504(e) of such title. The additional
requirements of this subtitle that relate to privacy and that are made
applicable with respect to covered entities shall also be applicable to
such a business associate and shall be incorporated into the business
associate agreement between the business associate and the covered
entity.
(b) Application of Knowledge Elements Associated With Contracts.--
Section 164.504(e)(1)(ii) of title 45, Code of Federal Regulations,
shall apply to a business associate described in subsection (a), with
respect to compliance with such subsection, in the same manner that such
section applies to a covered entity, with respect to compliance with the
standards in sections 164.502(e) and 164.504(e) of such title, except
that in applying such section 164.504(e)(1)(ii) each reference to the
business associate, with respect to a contract, shall be treated as a
reference to the covered entity involved in such contract.
(c) Application of Civil and Criminal Penalties.--In the case of a
business associate that violates any provision of subsection (a) or (b),
the provisions of sections 1176 and 1177 of the Social Security Act (42
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
respect to such violation in the same manner as such provisions apply to
a person who violates a provision of part C of title XI of such Act.
SEC. 13405. RESTRICTIONS <<NOTE: 42 USC 17935.>> ON CERTAIN DISCLOSURES
AND SALES OF HEALTH INFORMATION; ACCOUNTING OF CERTAIN
PROTECTED HEALTH INFORMATION DISCLOSURES; ACCESS TO CERTAIN
INFORMATION IN ELECTRONIC FORMAT.
(a) Requested Restrictions on Certain Disclosures of Health
Information.--In the case that an individual requests under paragraph
(a)(1)(i)(A) of section 164.522 of title 45, Code of Federal
Regulations, that a covered entity restrict the disclosure of the
protected health information of the individual, notwithstanding
paragraph (a)(1)(ii) of such section, the covered entity must comply
with the requested restriction if--
(1) except as otherwise required by law, the disclosure is
to a health plan for purposes of carrying out payment or health
care operations (and is not for purposes of carrying out
treatment); and
(2) the protected health information pertains solely to a
health care item or service for which the health care provider
involved has been paid out of pocket in full.
(b) Disclosures Required to Be Limited to the Limited Data Set or
the Minimum Necessary.--
(1) In general.--
(A) In general.--Subject to subparagraph (B), a
covered entity shall be treated as being in compliance
with
[[Page 123 STAT. 265]]
section 164.502(b)(1) of title 45, Code of Federal
Regulations, with respect to the use, disclosure, or
request of protected health information described in
such section, only if the covered entity limits such
protected health information, to the extent practicable,
to the limited data set (as defined in section
164.514(e)(2) of such title) or, if needed by such
entity, to the minimum necessary to accomplish the
intended purpose of such use, disclosure, or request,
respectively.
(B) Guidance.--Not <<NOTE: Deadline.>> later than 18
months after the date of the enactment of this section,
the Secretary shall issue guidance on what constitutes
``minimum necessary'' for purposes of subpart E of part
164 of title 45, Code of Federal Regulation. In issuing
such guidance the Secretary shall take into
consideration the guidance under section 13424(c) and
the information necessary to improve patient outcomes
and to detect, prevent, and manage chronic disease.
(C) Sunset.--Subparagraph (A) shall not apply on and
after the effective date on which the Secretary issues
the guidance under subparagraph (B).
(2) Determination of minimum necessary.--For purposes of
paragraph (1), in the case of the disclosure of protected health
information, the covered entity or business associate disclosing
such information shall determine what constitutes the minimum
necessary to accomplish the intended purpose of such disclosure.
(3) Application of exceptions.--The exceptions described in
section 164.502(b)(2) of title 45, Code of Federal Regulations,
shall apply to the requirement under paragraph (1) as of the
effective date described in section 13423 in the same manner
that such exceptions apply to section 164.502(b)(1) of such
title before such date.
(4) Rule of construction.--Nothing in this subsection shall
be construed as affecting the use, disclosure, or request of
protected health information that has been de-identified.
(c) Accounting of Certain Protected Health Information Disclosures
Required if Covered Entity Uses Electronic Health Record.--
``(1) In general.--In applying section 164.528 of title 45,
Code of Federal Regulations, in the case that a covered entity
uses or maintains an electronic health record with respect to
protected health information--
``(A) the exception under paragraph (a)(1)(i) of
such section shall not apply to disclosures through an
electronic health record made by such entity of such
information; and
``(B) an individual shall have a right to receive an
accounting of disclosures described in such paragraph of
such information made by such covered entity during only
the three years prior to the date on which the
accounting is requested.
``(2) Regulations.--The <<NOTE: Deadline.>> Secretary shall
promulgate regulations on what information shall be collected
about each disclosure referred to in paragraph (1), not later
than 6 months after the date on which the Secretary adopts
standards on accounting for disclosure described in the section
[[Page 123 STAT. 266]]
3002(b)(2)(B)(iv) of the Public Health Service Act, as added by
section 13101. Such regulations shall only require such
information to be collected through an electronic health record
in a manner that takes into account the interests of the
individuals in learning the circumstances under which their
protected health information is being disclosed and takes into
account the administrative burden of accounting for such
disclosures.
``(3) Process.--In response to an request from an individual
for an accounting, a covered entity shall elect to provide
either an--
``(A) accounting, as specified under paragraph (1),
for disclosures of protected health information that are
made by such covered entity and by a business associate
acting on behalf of the covered entity; or
``(B) accounting, as specified under paragraph (1),
for disclosures that are made by such covered entity and
provide a list of all business associates acting on
behalf of the covered entity, including contact
information for such associates (such as mailing
address, phone, and email address).
A business associate included on a list under subparagraph (B)
shall provide an accounting of disclosures (as required under
paragraph (1) for a covered entity) made by the business
associate upon a request made by an individual directly to the
business associate for such an accounting.
``(4) Effective <<NOTE: Applicability.>> date.--
``(A) Current users of electronic records.--In the
case of a covered entity insofar as it acquired an
electronic health record as of January 1, 2009,
paragraph (1) shall apply to disclosures, with respect
to protected health information, made by the covered
entity from such a record on and after January 1, 2014.
``(B) Others.--In the case of a covered entity
insofar as it acquires an electronic health record after
January 1, 2009, paragraph (1) shall apply to
disclosures, with respect to protected health
information, made by the covered entity from such record
on and after the later of the following:
``(i) January 1, 2011; or
``(ii) the date that it acquires an electronic
health record.
``(C) Later date.--The Secretary may set an
effective date that is later that the date specified
under subparagraph (A) or (B) if the Secretary
determines that such later date is necessary, but in no
case may the date specified under--
``(i) subparagraph (A) be later than 2016; or
``(ii) subparagraph (B) be later than 2013.''
(d) Prohibition on Sale of Electronic Health Records or Protected
Health Information.--
(1) In general.--Except as provided in paragraph (2), a
covered entity or business associate shall not directly or
indirectly receive remuneration in exchange for any protected
health information of an individual unless the covered entity
obtained from the individual, in accordance with section 164.508
of title 45, Code of Federal Regulations, a valid authorization
that includes, in accordance with such section, a specification
[[Page 123 STAT. 267]]
of whether the protected health information can be further
exchanged for remuneration by the entity receiving protected
health information of that individual.
(2) Exceptions.--Paragraph (1) shall not apply in the
following cases:
(A) The purpose of the exchange is for public health
activities (as described in section 164.512(b) of title
45, Code of Federal Regulations).
(B) The purpose of the exchange is for research (as
described in sections 164.501 and 164.512(i) of title
45, Code of Federal Regulations) and the price charged
reflects the costs of preparation and transmittal of the
data for such purpose.
(C) The purpose of the exchange is for the treatment
of the individual, subject to any regulation that the
Secretary may promulgate to prevent protected health
information from inappropriate access, use, or
disclosure.
(D) The purpose of the exchange is the health care
operation specifically described in subparagraph (iv) of
paragraph (6) of the definition of healthcare operations
in section 164.501 of title 45, Code of Federal
Regulations.
(E) The purpose of the exchange is for remuneration
that is provided by a covered entity to a business
associate for activities involving the exchange of
protected health information that the business associate
undertakes on behalf of and at the specific request of
the covered entity pursuant to a business associate
agreement.
(F) The purpose of the exchange is to provide an
individual with a copy of the individual's protected
health information pursuant to section 164.524 of title
45, Code of Federal Regulations.
(G) The purpose of the exchange is otherwise
determined by the Secretary in regulations to be
similarly necessary and appropriate as the exceptions
provided in subparagraphs (A) through (F).
(3) Regulations.--Not <<NOTE: Deadline.>> later than 18
months after the date of enactment of this title, the Secretary
shall promulgate regulations to carry out this subsection. In
promulgating such regulations, the Secretary--
(A) shall evaluate the impact of restricting the
exception described in paragraph (2)(A) to require that
the price charged for the purposes described in such
paragraph reflects the costs of the preparation and
transmittal of the data for such purpose, on research or
public health activities, including those conducted by
or for the use of the Food and Drug Administration; and
(B) may further restrict the exception described in
paragraph (2)(A) to require that the price charged for
the purposes described in such paragraph reflects the
costs of the preparation and transmittal of the data for
such purpose, if the Secretary finds that such further
restriction will not impede such research or public
health activities.
(4) Effective date.--Paragraph (1) shall apply to exchanges
occurring on or after the date that is 6 months after the date
of the promulgation of final regulations implementing this
subsection.
[[Page 123 STAT. 268]]
(e) Access to Certain Information in Electronic Format.--In applying
section 164.524 of title 45, Code of Federal Regulations, in the case
that a covered entity uses or maintains an electronic health record with
respect to protected health information of an individual--
(1) the individual shall have a right to obtain from such
covered entity a copy of such information in an electronic
format and, if the individual chooses, to direct the covered
entity to transmit such copy directly to an entity or person
designated by the individual, provided that any such choice is
clear, conspicuous, and specific; and
(2) notwithstanding paragraph (c)(4) of such section, any
fee that the covered entity may impose for providing such
individual with a copy of such information (or a summary or
explanation of such information) if such copy (or summary or
explanation) is in an electronic form shall not be greater than
the entity's labor costs in responding to the request for the
copy (or summary or explanation).
SEC. 13406. CONDITIONS <<NOTE: 42 USC 17936.>> ON CERTAIN CONTACTS AS
PART OF HEALTH CARE OPERATIONS.
(a) Marketing.--
(1) In general.--A communication by a covered entity or
business associate that is about a product or service and that
encourages recipients of the communication to purchase or use
the product or service shall not be considered a health care
operation for purposes of subpart E of part 164 of title 45,
Code of Federal Regulations, unless the communication is made as
described in subparagraph (i), (ii), or (iii) of paragraph (1)
of the definition of marketing in section 164.501 of such title.
(2) Payment for certain communications.--A communication by
a covered entity or business associate that is described in
subparagraph (i), (ii), or (iii) of paragraph (1) of the
definition of marketing in section 164.501 of title 45, Code of
Federal Regulations, shall not be considered a health care
operation for purposes of subpart E of part 164 of title 45,
Code of Federal Regulations if the covered entity receives or
has received direct or indirect payment in exchange for making
such communication, except where--
(A)(i) such communication describes only a drug or
biologic that is currently being prescribed for the
recipient of the communication; and
(ii) any payment received by such covered entity in
exchange for making a communication described in clause
(i) is reasonable in amount;
(B) each of the following conditions apply--
(i) the communication is made by the covered
entity; and
(ii) the covered entity making such
communication obtains from the recipient of the
communication, in accordance with section 164.508
of title 45, Code of Federal Regulations, a valid
authorization (as described in paragraph (b) of
such section) with respect to such communication;
or
(C) each of the following conditions apply--
[[Page 123 STAT. 269]]
(i) the communication is made by a business
associate on behalf of the covered entity; and
(ii) the communication is consistent with the
written contract (or other written arrangement
described in section 164.502(e)(2) of such title)
between such business associate and covered
entity.
(3) Reasonable in amount defined.--For purposes of paragraph
(2), the term ``reasonable in amount'' shall have the meaning
given such term by the Secretary by regulation.
(4) Direct or indirect payment.--For purposes of paragraph
(2), the term ``direct or indirect payment'' shall not include
any payment for treatment (as defined in section 164.501 of
title 45, Code of Federal Regulations) of an individual.
(b) Opportunity <<NOTE: Regulations.>> to Opt Out of Fundraising.--
The Secretary shall by rule provide that any written fundraising
communication that is a healthcare operation as defined under section
164.501 of title 45, Code of Federal Regulations, shall, in a clear and
conspicuous manner, provide an opportunity for the recipient of the
communications to elect not to receive any further such communication.
When an individual elects not to receive any further such communication,
such election shall be treated as a revocation of authorization under
section 164.508 of title 45, Code of Federal Regulations.
(c) Effective Date.--This section shall apply to written
communications occurring on or after the effective date specified under
section 13423.
SEC. 13407. TEMPORARY <<NOTE: 42 USC 17937.>> BREACH NOTIFICATION
REQUIREMENT FOR VENDORS OF PERSONAL HEALTH RECORDS AND OTHER
NON-HIPAA COVERED ENTITIES.
(a) In General.--In accordance with subsection (c), each vendor of
personal health records, following the discovery of a breach of security
of unsecured PHR identifiable health information that is in a personal
health record maintained or offered by such vendor, and each entity
described in clause (ii), (iii), or (iv) of section 13424(b)(1)(A),
following the discovery of a breach of security of such information that
is obtained through a product or service provided by such entity,
shall--
(1) notify each individual who is a citizen or resident of
the United States whose unsecured PHR identifiable health
information was acquired by an unauthorized person as a result
of such a breach of security; and
(2) notify the Federal Trade Commission.
(b) Notification by Third Party Service Providers.--A third party
service provider that provides services to a vendor of personal health
records or to an entity described in clause (ii), (iii). or (iv) of
section 13424(b)(1)(A) in connection with the offering or maintenance of
a personal health record or a related product or service and that
accesses, maintains, retains, modifies, records, stores, destroys, or
otherwise holds, uses, or discloses unsecured PHR identifiable health
information in such a record as a result of such services shall,
following the discovery of a breach of security of such information,
notify such vendor or entity, respectively, of such breach. Such notice
shall include the identification of each individual whose unsecured PHR
identifiable health information
[[Page 123 STAT. 270]]
has been, or is reasonably believed to have been, accessed, acquired, or
disclosed during such breach.
(c) Application of Requirements for Timeliness, Method, and Content
of Notifications.--Subsections (c), (d), (e), and (f) of section 13402
shall apply to a notification required under subsection (a) and a vendor
of personal health records, an entity described in subsection (a) and a
third party service provider described in subsection (b), with respect
to a breach of security under subsection (a) of unsecured PHR
identifiable health information in such records maintained or offered by
such vendor, in a manner specified by the Federal Trade Commission.
(d) Notification of the Secretary.--Upon receipt of a notification
of a breach of security under subsection (a)(2), the Federal Trade
Commission shall notify the Secretary of such breach.
(e) Enforcement.--A violation of subsection (a) or (b) shall be
treated as an unfair and deceptive act or practice in violation of a
regulation under section 18(a)(1)(B) of the Federal Trade Commission Act
(15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or
practices.
(f) Definitions.--For purposes of this section:
(1) Breach of security.--The term ``breach of security''
means, with respect to unsecured PHR identifiable health
information of an individual in a personal health record,
acquisition of such information without the authorization of the
individual.
(2) PHR identifiable health information.--The term ``PHR
identifiable health information'' means individually
identifiable health information, as defined in section 1171(6)
of the Social Security Act (42 U.S.C. 1320d(6)), and includes,
with respect to an individual, information--
(A) that is provided by or on behalf of the
individual; and
(B) that identifies the individual or with respect
to which there is a reasonable basis to believe that the
information can be used to identify the individual.
(3) Unsecured phr identifiable health information.--
(A) In general.--Subject to subparagraph (B), the
term ``unsecured PHR identifiable health information''
means PHR identifiable health information that is not
protected through the use of a technology or methodology
specified by the Secretary in the guidance issued under
section 13402(h)(2).
(B) Exception in case timely guidance not issued.--
In the case that the Secretary does not issue guidance
under section 13402(h)(2) by the date specified in such
section, for purposes of this section, the term
``unsecured PHR identifiable health information'' shall
mean PHR identifiable health information that is not
secured by a technology standard that renders protected
health information unusable, unreadable, or
indecipherable to unauthorized individuals and that is
developed or endorsed by a standards developing
organization that is accredited by the American National
Standards Institute.
(g) Regulations; Effective Date; Sunset.--
(1) Regulations; effective date.--To carry out this section,
the Federal Trade Commission shall promulgate interim final
regulations by not later than the date that is 180 days
[[Page 123 STAT. 271]]
after the date of the enactment of this section.
The <<NOTE: Applicability.>> provisions of this section shall
apply to breaches of security that are discovered on or after
the date that is 30 days after the date of publication of such
interim final regulations.
(2) Sunset.--If Congress enacts new legislation establishing
requirements for notification in the case of a breach of
security, that apply to entities that are not covered entities
or business associates, the provisions of this section shall not
apply to breaches of security discovered on or after the
effective date of regulations implementing such legislation.
SEC. 13408. BUSINESS <<NOTE: 42 USC 17938.>> ASSOCIATE CONTRACTS
REQUIRED FOR CERTAIN ENTITIES.
Each organization, with respect to a covered entity, that provides
data transmission of protected health information to such entity (or its
business associate) and that requires access on a routine basis to such
protected health information, such as a Health Information Exchange
Organization, Regional Health Information Organization, E-prescribing
Gateway, or each vendor that contracts with a covered entity to allow
that covered entity to offer a personal health record to patients as
part of its electronic health record, is required to enter into a
written contract (or other written arrangement) described in section
164.502(e)(2) of title 45, Code of Federal Regulations and a written
contract (or other arrangement) described in section 164.308(b) of such
title, with such entity and shall be treated as a business associate of
the covered entity for purposes of the provisions of this subtitle and
subparts C and E of part 164 of title 45, Code of Federal Regulations,
as such provisions are in effect as of the date of enactment of this
title.
SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLOSURES
CRIMINAL PENALTIES.
Section 1177(a) of the Social Security Act (42 U.S.C. 1320d-6(a)) is
amended by adding at the end the following new sentence: ``For purposes
of the previous sentence, a person (including an employee or other
individual) shall be considered to have obtained or disclosed
individually identifiable health information in violation of this part
if the information is maintained by a covered entity (as defined in the
HIPAA privacy regulation described in section 1180(b)(3)) and the
individual obtained or disclosed such information without
authorization.''.
SEC. 13410. IMPROVED <<NOTE: 42 USC 17939.>> ENFORCEMENT.
(a) In General.--
(1) Noncompliance due to willful neglect.--Section 1176 of
the Social Security Act (42 U.S.C. 1320d-5) is amended--
(A) in subsection (b)(1), by striking ``the act
constitutes an offense punishable under section 1177''
and inserting ``a penalty has been imposed under section
1177 with respect to such act''; and
(B) by adding at the end the following new
subsection:
``(c) Noncompliance Due to Willful Neglect.--
``(1) In general.--A violation of a provision of this part
due to willful neglect is a violation for which the Secretary is
required to impose a penalty under subsection (a)(1).
``(2) Required investigation.--For purposes of paragraph
(1), the Secretary shall formally investigate any complaint of
[[Page 123 STAT. 272]]
a violation of a provision of this part if a preliminary
investigation of the facts of the complaint indicate such a
possible violation due to willful neglect.''.
(2) Enforcement under social security act.--Any violation by
a covered entity under thus subtitle is subject to enforcement
and penalties under section 1176 and 1177 of the Social Security
Act.
(b) Effective Date; Regulations.--
(1) The amendments made by subsection (a) shall apply to
penalties imposed on or after the date that is 24 months after
the date of the enactment of this title.
(2) Not <<NOTE: Deadline.>> later than 18 months after the
date of the enactment of this title, the Secretary of Health and
Human Services shall promulgate regulations to implement such
amendments.
(c) Distribution of Certain Civil Monetary Penalties Collected.--
(1) In general.--Subject to the regulation promulgated
pursuant to paragraph (3), any civil monetary penalty or
monetary settlement collected with respect to an offense
punishable under this subtitle or section 1176 of the Social
Security Act (42 U.S.C. 1320d-5) insofar as such section relates
to privacy or security shall be transferred to the Office for
Civil Rights of the Department of Health and Human Services to
be used for purposes of enforcing the provisions of this
subtitle and subparts C and E of part 164 of title 45, Code of
Federal Regulations, as such provisions are in effect as of the
date of enactment of this Act.
(2) GAO report.--Not later than 18 months after the date of
the enactment of this title, the Comptroller General shall
submit to the Secretary a report including recommendations for a
methodology under which an individual who is harmed by an act
that constitutes an offense referred to in paragraph (1) may
receive a percentage of any civil monetary penalty or monetary
settlement collected with respect to such offense.
(3) Establishment of methodology to distribute percentage of
cmps collected to harmed individuals.--Not later
than <<NOTE: Deadline.>> 3 years after the date of the enactment
of this title, the Secretary shall establish by regulation and
based on the recommendations submitted under paragraph (2), a
methodology under which an individual who is harmed by an act
that constitutes an offense referred to in paragraph (1) may
receive a percentage of any civil monetary penalty or monetary
settlement collected with respect to such offense.
(4) Application of methodology.--The methodology under
paragraph (3) shall be applied with respect to civil monetary
penalties or monetary settlements imposed on or after the
effective date of the regulation.
(d) Tiered Increase in Amount of Civil Monetary Penalties.--
(1) In general.--Section 1176(a)(1) of the Social Security
Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who
violates a provision of this part a penalty of not more than''
and all that follows and inserting the following: ``who violates
a provision of this part--
``(A) in the case of a violation of such provision
in which it is established that the person did not know
(and
[[Page 123 STAT. 273]]
by exercising reasonable diligence would not have known)
that such person violated such provision, a penalty for
each such violation of an amount that is at least the
amount described in paragraph (3)(A) but not to exceed
the amount described in paragraph (3)(D);
``(B) in the case of a violation of such provision
in which it is established that the violation was due to
reasonable cause and not to willful neglect, a penalty
for each such violation of an amount that is at least
the amount described in paragraph (3)(B) but not to
exceed the amount described in paragraph (3)(D); and
``(C) in the case of a violation of such provision
in which it is established that the violation was due to
willful neglect--
``(i) if the violation is corrected as
described in subsection (b)(3)(A), a penalty in an
amount that is at least the amount described in
paragraph (3)(C) but not to exceed the amount
described in paragraph (3)(D); and
``(ii) if the violation is not corrected as
described in such subsection, a penalty in an
amount that is at least the amount described in
paragraph (3)(D).
In determining the amount of a penalty under this
section for a violation, the Secretary shall base such
determination on the nature and extent of the violation
and the nature and extent of the harm resulting from
such violation.''.
(2) Tiers of penalties described.--Section 1176(a) of such
Act (42 U.S.C. 1320d-5(a)) is further amended by adding at the
end the following new paragraph:
``(3) Tiers of penalties described.--For purposes of
paragraph (1), with respect to a violation by a person of a
provision of this part--
``(A) the amount described in this subparagraph is
$100 for each such violation, except that the total
amount imposed on the person for all such violations of
an identical requirement or prohibition during a
calendar year may not exceed $25,000;
``(B) the amount described in this subparagraph is
$1,000 for each such violation, except that the total
amount imposed on the person for all such violations of
an identical requirement or prohibition during a
calendar year may not exceed $100,000;
``(C) the amount described in this subparagraph is
$10,000 for each such violation, except that the total
amount imposed on the person for all such violations of
an identical requirement or prohibition during a
calendar year may not exceed $250,000; and
``(D) the amount described in this subparagraph is
$50,000 for each such violation, except that the total
amount imposed on the person for all such violations of
an identical requirement or prohibition during a
calendar year may not exceed $1,500,000.''.
(3) Conforming amendments.--Section 1176(b) of such Act (42
U.S.C. 1320d-5(b)) is amended--
(A) by striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively; and
[[Page 123 STAT. 274]]
(B) in paragraph (2), as so redesignated--
(i) in subparagraph (A), by striking ``in
subparagraph (B), a penalty may not be imposed
under subsection (a) if'' and all that follows
through ``the failure to comply is corrected'' and
inserting ``in subparagraph (B) or subsection
(a)(1)(C), a penalty may not be imposed under
subsection (a) if the failure to comply is
corrected''; and
(ii) in subparagraph (B), by striking
``(A)(ii)'' and inserting ``(A)'' each place it
appears.
(4) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the
enactment of this title.
(e) Enforcement Through State Attorneys General.--
(1) In general.--Section 1176 of the Social Security Act (42
U.S.C. 1320d-5) is amended by adding at the end the following
new subsection:
``(d) Enforcement by State Attorneys General.--
``(1) Civil action.--Except as provided in subsection (b),
in any case in which the attorney general of a State has reason
to believe that an interest of one or more of the residents of
that State has been or is threatened or adversely affected by
any person who violates a provision of this part, the attorney
general of the State, as parens patriae, may bring a civil
action on behalf of such residents of the State in a district
court of the United States of appropriate jurisdiction--
``(A) to enjoin further such violation by the
defendant; or
``(B) to obtain damages on behalf of such residents
of the State, in an amount equal to the amount
determined under paragraph (2).
``(2) Statutory damages.--
``(A) In general.--For purposes of paragraph (1)(B),
the amount determined under this paragraph is the amount
calculated by multiplying the number of violations by up
to $100. For purposes of the preceding sentence, in the
case of a continuing violation, the number of violations
shall be determined consistent with the HIPAA privacy
regulations (as defined in section 1180(b)(3)) for
violations of subsection (a).
``(B) Limitation.--The total amount of damages
imposed on the person for all violations of an identical
requirement or prohibition during a calendar year may
not exceed $25,000.
``(C) Reduction of damages.--In assessing damages
under subparagraph (A), the court may consider the
factors the Secretary may consider in determining the
amount of a civil money penalty under subsection (a)
under the HIPAA privacy regulations.
``(3) Attorney fees.--In the case of any successful action
under paragraph (1), the court, in its discretion, may award the
costs of the action and reasonable attorney fees to the State.
``(4) Notice <<NOTE: Records.>> to secretary.--The State
shall serve prior written notice of any action under paragraph
(1) upon the Secretary and provide the Secretary with a copy of
its complaint, except in any case in which such prior notice is
not
[[Page 123 STAT. 275]]
feasible, in which case the State shall serve such notice
immediately upon instituting such action. The Secretary shall
have the right--
``(A) to intervene in the action;
``(B) upon so intervening, to be heard on all
matters arising therein; and
``(C) to file petitions for appeal.
``(5) Construction.--For purposes of bringing any civil
action under paragraph (1), nothing in this section shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by the
laws of that State.
``(6) Venue; service of process.--
``(A) Venue.--Any action brought under paragraph (1)
may be brought in the district court of the United
States that meets applicable requirements relating to
venue under section 1391 of title 28, United States
Code.
``(B) Service of process.--In an action brought
under paragraph (1), process may be served in any
district in which the defendant--
``(i) is an inhabitant; or
``(ii) maintains a physical place of business.
``(7) Limitation on state action while federal action is
pending.--If the Secretary has instituted an action against a
person under subsection (a) with respect to a specific violation
of this part, no State attorney general may bring an action
under this subsection against the person with respect to such
violation during the pendency of that action.
``(8) Application of cmp statute of limitation.--A civil
action may not be instituted with respect to a violation of this
part unless an action to impose a civil money penalty may be
instituted under subsection (a) with respect to such violation
consistent with the second sentence of section 1128A(c)(1).''.
(2) Conforming amendments.--Subsection (b) of such section,
as amended by subsection (d)(3), is amended--
(A) in paragraph (1), by striking ``A penalty may
not be imposed under subsection (a)'' and inserting ``No
penalty may be imposed under subsection (a) and no
damages obtained under subsection (d)'';
(B) in paragraph (2)(A)--
(i) after ``subsection (a)(1)(C),'', by
striking ``a penalty may not be imposed under
subsection (a)'' and inserting ``no penalty may be
imposed under subsection (a) and no damages
obtained under subsection (d)''; and
(ii) in clause (ii), by inserting ``or
damages'' after ``the penalty'';
(C) in paragraph (2)(B)(i), by striking ``The
period'' and inserting ``With respect to the imposition
of a penalty by the Secretary under subsection (a), the
period''; and
(D) in paragraph (3), by inserting ``and any damages
under subsection (d)'' after ``any penalty under
subsection (a)''.
(3) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the
enactment of this Act.
[[Page 123 STAT. 276]]
(f) Allowing Continued Use of Corrective Action.--Such section is
further amended by adding at the end the following new subsection:
``(e) Allowing Continued Use of Corrective Action.--Nothing in this
section shall be construed as preventing the Office for Civil Rights of
the Department of Health and Human Services from continuing, in its
discretion, to use corrective action without a penalty in cases where
the person did not know (and by exercising reasonable diligence would
not have known) of the violation involved.''.
SEC. 13411. <<NOTE: 42 USC 17940.>> AUDITS.
The Secretary shall provide for periodic audits to ensure that
covered entities and business associates that are subject to the
requirements of this subtitle and subparts C and E of part 164 of title
45, Code of Federal Regulations, as such provisions are in effect as of
the date of enactment of this Act, comply with such requirements.
PART 2--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE
DATE; REPORTS
SEC. 13421. RELATIONSHIP <<NOTE: 42 USC 17951.>> TO OTHER LAWS.
(a) Application of Hipaa State Preemption.--Section 1178 of the
Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision or
requirement under this subtitle in the same manner that such section
applies to a provision or requirement under part C of title XI of such
Act or a standard or implementation specification adopted or established
under sections 1172 through 1174 of such Act.
(b) Health Insurance Portability and Accountability Act.--The
standards governing the privacy and security of individually
identifiable health information promulgated by the Secretary under
sections 262(a) and 264 of the Health Insurance Portability and
Accountability Act of 1996 shall remain in effect to the extent that
they are consistent with this subtitle. The Secretary shall by rule
amend such Federal regulations as required to make such regulations
consistent with this subtitle.
(c) Construction.--Nothing in this subtitle shall constitute a
waiver of any privilege otherwise applicable to an individual with
respect to the protected health information of such individual.
SEC. 13422. REGULATORY <<NOTE: 42 USC 17952.>> 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 <<NOTE: 42 USC 17953.>> DATE.
Except as otherwise specifically provided, the provisions of part I
shall take effect on the date that is 12 months after the date of the
enactment of this title.
SEC. 13424. STUDIES, <<NOTE: 42 USC 17954.>> REPORTS, GUIDANCE.
(a) Report on Compliance.--
[[Page 123 STAT. 277]]
(1) In general.--For the first year beginning after the date
of the enactment of this Act and annually thereafter, the
Secretary shall prepare and submit to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee
on Ways and Means and the Committee on Energy and Commerce of
the House of Representatives a report concerning complaints of
alleged violations of law, including the provisions of this
subtitle as well as the provisions of subparts C and E of part
164 of title 45, Code of Federal Regulations, (as such
provisions are in effect as of the date of enactment of this
Act) relating to privacy and security of health information that
are received by the Secretary during the year for which the
report is being prepared. Each such report shall include, with
respect to such complaints received during the year--
(A) the number of such complaints;
(B) the number of such complaints resolved
informally, a summary of the types of such complaints so
resolved, and the number of covered entities that
received technical assistance from the Secretary during
such year in order to achieve compliance with such
provisions and the types of such technical assistance
provided;
(C) the number of such complaints that have resulted
in the imposition of civil monetary penalties or have
been resolved through monetary settlements, including
the nature of the complaints involved and the amount
paid in each penalty or settlement;
(D) the number of compliance reviews conducted and
the outcome of each such review;
(E) the number of subpoenas or inquiries issued;
(F) the Secretary's plan for improving compliance
with and enforcement of such provisions for the
following year; and
(G) the number of audits performed and a summary of
audit findings pursuant to section 13411.
(2) Availability to public.--Each <<NOTE: Web
posting.>> report under paragraph (1) shall be made available to
the public on the Internet website of the Department of Health
and Human Services.
(b) Study and Report on Application of Privacy and Security
Requirements to Non-Hipaa Covered Entities.--
(1) Study.--Not later than one year after the date of the
enactment of this title, the Secretary, in consultation with the
Federal Trade Commission, shall conduct a study, and submit a
report under paragraph (2), on privacy and security requirements
for entities that are not covered entities or business
associates as of the date of the enactment of this title,
including--
(A) requirements relating to security, privacy, and
notification in the case of a breach of security or
privacy (including the applicability of an exemption to
notification in the case of individually identifiable
health information that has been rendered unusable,
unreadable, or indecipherable through technologies or
methodologies recognized by appropriate professional
organization or standard setting bodies to provide
effective security for the information) that should be
applied to--
(i) vendors of personal health records;
[[Page 123 STAT. 278]]
(ii) entities that offer products or services
through the website of a vendor of personal health
records;
(iii) entities that are not covered entities
and that offer products or services through the
websites of covered entities that offer
individuals personal health records;
(iv) entities that are not covered entities
and that access information in a personal health
record or send information to a personal health
record; and
(v) third party service providers used by a
vendor or entity described in clause (i), (ii),
(iii), or (iv) to assist in providing personal
health record products or services;
(B) a determination of which Federal government
agency is best equipped to enforce such requirements
recommended to be applied to such vendors, entities, and
service providers under subparagraph (A); and
(C) a timeframe for implementing regulations based
on such findings.
(2) Report.--The Secretary shall submit to the Committee on
Finance, the Committee on Health, Education, Labor, and
Pensions, and the Committee on Commerce of the Senate and the
Committee on Ways and Means and the Committee on Energy and
Commerce of the House of Representatives a report on the
findings of the study under paragraph (1) and shall include in
such report recommendations on the privacy and security
requirements described in such paragraph.
(c) Guidance on Implementation Specification to De-Identify
Protected Health Information.--Not later than 12 months after the date
of the enactment of this title, the Secretary shall, in consultation
with stakeholders, issue guidance on how best to implement the
requirements for the de-identification of protected health information
under section 164.514(b) of title 45, Code of Federal Regulations.
(d) GAO Report on Treatment Disclosures.--Not later than one year
after the date of the enactment of this title, the Comptroller General
of the United States shall submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Ways and Means
and the Committee on Energy and Commerce of the House of Representatives
a report on the best practices related to the disclosure among health
care providers of protected health information of an individual for
purposes of treatment of such individual. Such report shall include an
examination of the best practices implemented by States and by other
entities, such as health information exchanges and regional health
information organizations, an examination of the extent to which such
best practices are successful with respect to the quality of the
resulting health care provided to the individual and with respect to the
ability of the health care provider to manage such best practices, and
an examination of the use of electronic informed consent for disclosing
protected health information for treatment, payment, and health care
operations.
(e) Report Required.--Not later than 5 years after the date of
enactment of this section, the Government Accountability Office shall
submit to Congress and the Secretary of Health and Human Services a
report on the impact of any of the provisions of this
[[Page 123 STAT. 279]]
Act on health insurance premiums, overall health care costs, adoption of
electronic health records by providers, and reduction in medical errors
and other quality improvements.
(f) Study.--The Secretary shall study the definition of
``psychotherapy notes'' in section 164.501 of title 45, Code of Federal
Regulations, with regard to including test data that is related to
direct responses, scores, items, forms, protocols, manuals, or other
materials that are part of a mental health evaluation, as determined by
the mental health professional providing treatment or evaluation in such
definitions and may, based on such study, issue regulations to revise
such definition.
TITLE XIV--STATE FISCAL STABILIZATION FUND
DEPARTMENT OF EDUCATION
State Fiscal Stabilization Fund
For necessary expenses for a State Fiscal Stabilization Fund,
$53,600,000,000, which shall be administered by the Department of
Education.
GENERAL PROVISIONS--THIS TITLE
SEC. 14001. ALLOCATIONS.
(a) Outlying Areas.--From the amount appropriated to carry out this
title, the Secretary of Education shall first allocate up to one-half of
1 percent to the outlying areas on the basis of their respective needs,
as determined by the Secretary, in consultation with the Secretary of
the Interior, for activities consistent with this title under such terms
and conditions as the Secretary may determine.
(b) Administration and Oversight.--The Secretary may, in addition,
reserve up to $14,000,000 for administration and oversight of this
title, including for program evaluation.
(c) Reservation for Additional Programs.--
After <<NOTE: Grants.>> reserving funds under subsections (a) and (b),
the Secretary shall reserve $5,000,000,000 for grants under sections
14006 and 14007.
(d) State Allocations.--After carrying out subsections (a), (b), and
(c), the Secretary shall allocate the remaining funds made available to
carry out this title to the States as follows:
(1) 61 percent on the basis of their relative population of
individuals aged 5 through 24.
(2) 39 percent on the basis of their relative total
population.
(e) State Grants.--From funds allocated under subsection (d), the
Secretary shall make grants to the Governor of each State.
(f) Reallocation.--The Governor shall return to the Secretary any
funds received under subsection (e) that the Governor does not award as
subgrants or otherwise commit within two years of receiving such funds,
and the Secretary shall reallocate such funds to the remaining States in
accordance with subsection (d).
SEC. 14002. STATE USES OF FUNDS.
(a) Education Fund.--
[[Page 123 STAT. 280]]
(1) In general.--For each fiscal year, the Governor shall
use 81.8 percent of the State's allocation under section
14001(d) for the support of elementary, secondary, and
postsecondary education and, as applicable, early childhood
education programs and services.
(2) Restoring state support for education.--
(A) In general.--The Governor shall first use the
funds described in paragraph (1)--
(i) to provide the amount of funds, through
the State's primary elementary and secondary
funding formulae, that is needed--
(I) to restore, in each of fiscal
years 2009, 2010, and 2011, the level of
State support provided through such
formulae to the greater of the fiscal
year 2008 or fiscal year 2009 level; and
(II) where applicable, to allow
existing State formulae increases to
support elementary and secondary
education for fiscal years 2010 and 2011
to be implemented and allow funding for
phasing in State equity and adequacy
adjustments, if such increases were
enacted pursuant to State law prior to
October 1, 2008.
(ii) to provide, in each of fiscal years 2009,
2010, and 2011, the amount of funds to public
institutions of higher education in the State that
is needed to restore State support for such
institutions (excluding tuition and fees paid by
students) to the greater of the fiscal year 2008
or fiscal year 2009 level.
(B) Shortfall.--If the Governor determines that the
amount of funds available under paragraph (1) is
insufficient to support, in each of fiscal years 2009,
2010, and 2011, public elementary, secondary, and higher
education at the levels described in clauses (i) and
(ii) of subparagraph (A), the Governor shall allocate
those funds between those clauses in proportion to the
relative shortfall in State support for the education
sectors described in those clauses.
(C) Fiscal year.--For purposes of this paragraph,
the term ``fiscal year'' shall have the meaning given
such term under State law.
(3) Subgrants to improve basic programs operated by local
educational agencies.--After carrying out paragraph (2), the
Governor shall use any funds remaining under paragraph (1) to
provide local educational agencies in the State with subgrants
based on their relative shares of funding under part A of title
I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.) for the most recent year for which data are
available.
(b) Other Government Services.--
(1) In general.--The Governor shall use 18.2 percent of the
State's allocation under section 14001 for public safety and
other government services, which may include assistance for
elementary and secondary education and public institutions of
higher education, and for modernization, renovation, or repair
of public school facilities and institutions of higher education
facilities, including modernization, renovation, and repairs
that are consistent with a recognized green building rating
system.
[[Page 123 STAT. 281]]
(2) Availability to all institutions of higher education.--A
Governor shall not consider the type or mission of an
institution of higher education, and shall consider any
institution for funding for modernization, renovation, and
repairs within the State that--
(A) qualifies as an institution of higher education,
as defined in subsection 14013(3); and
(B) continues to be eligible to participate in the
programs under title IV of the Higher Education Act of
1965.
(c) Rule of Construction.--Nothing in this section shall allow a
local educational agency to engage in school modernization, renovation,
or repair that is inconsistent with State law.
SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.
(a) In General.--A local educational agency that receives funds
under this title may use the funds for any activity authorized by the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
(``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.) (``IDEA''), the Adult and Family Literacy Act (20 U.S.C.
1400 et seq.), or the Carl D. Perkins Career and Technical Education Act
of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for
modernization, renovation, or repair of public school facilities,
including modernization, renovation, and repairs that are consistent
with a recognized green building rating system.
(b) Prohibition.--A local educational agency may not use funds
received under this title for--
(1) payment of maintenance costs;
(2) stadiums or other facilities primarily used for athletic
contests or exhibitions or other events for which admission is
charged to the general public;
(3) purchase or upgrade of vehicles; or
(4) improvement of stand-alone facilities whose purpose is
not the education of children, including central office
administration or operations or logistical support facilities.
(c) Rule of Construction.--Nothing in this section shall allow a
local educational agency to engage in school modernization, renovation,
or repair that is inconsistent with State law.
SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.
(a) In General.--A public institution of higher education that
receives funds under this title shall use the funds for education and
general expenditures, and in such a way as to mitigate the need to raise
tuition and fees for in-State students, or for modernization,
renovation, or repair of institution of higher education facilities that
are primarily used for instruction, research, or student housing,
including modernization, renovation, and repairs that are consistent
with a recognized green building rating system.
(b) Prohibition.--An institution of higher education may not use
funds received under this title to increase its endowment.
(c) Additional Prohibition.--No funds awarded under this title may
be used for--
(1) the maintenance of systems, equipment, or facilities;
(2) modernization, renovation, or repair of stadiums or
other facilities primarily used for athletic contests or
exhibitions or other events for which admission is charged to
the general public; or
(3) modernization, renovation, or repair of facilities--
[[Page 123 STAT. 282]]
(A) used for sectarian instruction or religious
worship; or
(B) in which a substantial portion of the functions
of the facilities are subsumed in a religious mission.
SEC. 14005. STATE APPLICATIONS.
(a) In General.--The Governor of a State desiring to receive an
allocation under section 14001 shall submit an application at such time,
in such manner, and containing such information as the Secretary may
reasonably require.
(b) Application.--In such application, the Governor shall--
(1) include the assurances described in subsection (d);
(2) provide baseline data that demonstrates the State's
current status in each of the areas described in such
assurances; and
(3) describe how the State intends to use its allocation,
including whether the State will use such allocation to meet
maintenance of effort requirements under the ESEA and IDEA and,
in such cases, what amount will be used to meet such
requirements.
(c) Incentive Grant Application.--The Governor of a State seeking a
grant under section 14006 shall--
(1) submit an application for consideration;
(2) describe the status of the State's progress in each of
the areas described in subsection (d), and the strategies the
State is employing to help ensure that students in the subgroups
described in section 1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C.
6311(b)(2)(C)(v)(II)) who have not met the State's proficiency
targets continue making progress toward meeting the State's
student academic achievement standards;
(3) describe the achievement and graduation rates (as
described in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C.
6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of
title 34, Code of Federal Regulations) of public elementary and
secondary school students in the State, and the strategies the
State is employing to help ensure that all subgroups of students
identified in section 1111(b)(2) of the ESEA (20 U.S.C.
6311(b)(2)) in the State continue making progress toward meeting
the State's student academic achievement standards;
(4) describe how the State would use its grant funding to
improve student academic achievement in the State, including how
it will allocate the funds to give priority to high-need local
educational agencies; and
(5) include a plan for evaluating the State's progress in
closing achievement gaps.
(d) Assurances.--An application under subsection (b) shall include
the following assurances:
(1) Maintenance of effort.--
(A) Elementary and secondary education.--The State
will, in each of fiscal years 2009, 2010, and 2011,
maintain State support for elementary and secondary
education at least at the level of such support in
fiscal year 2006.
(B) Higher education.--The State will, in each of
fiscal years 2009, 2010, and 2011, maintain State
support for public institutions of higher education (not
including support for capital projects or for research
and development
[[Page 123 STAT. 283]]
or tuition and fees paid by students) at least at the
level of such support in fiscal year 2006.
(2) Achieving equity in teacher distribution.--The State
will take actions to improve teacher effectiveness and comply
with section 1111(b)(8)(C) of the ESEA (20 U.S.C. 6311(b)(8)(C))
in order to address inequities in the distribution of highly
qualified teachers between high- and low-poverty schools, and to
ensure that low-income and minority children are not taught at
higher rates than other children by inexperienced, unqualified,
or out-of-field teachers.
(3) Improving collection and use of data.--The State will
establish a longitudinal data system that includes the elements
described in section 6401(e)(2)(D) of the America COMPETES Act
(20 U.S.C. 9871).
(4) Standards and assessments.--The State--
(A) will enhance the quality of the academic
assessments it administers pursuant to section
1111(b)(3) of the ESEA (20 U.S.C. 6311(b)(3)) through
activities such as those described in section 6112(a) of
such Act (20 U.S.C. 7301a(a));
(B) will comply with the requirements of paragraphs
(3)(C)(ix) and (6) of section 1111(b) of the ESEA (20
U.S.C. 6311(b)) and section 612(a)(16) of the IDEA (20
U.S.C. 1412(a)(16)) related to the inclusion of children
with disabilities and limited English proficient
students in State assessments, the development of valid
and reliable assessments for those students, and the
provision of accommodations that enable their
participation in State assessments; and
(C) will take steps to improve State academic
content standards and student academic achievement
standards consistent with section 6401(e)(1)(9)(A)(ii)
of the America COMPETES Act.
(5) Supporting struggling schools.--The State will ensure
compliance with the requirements of section 1116(a)(7)(C)(iv)
and section 1116(a)(8)(B) of the ESEA with respect to schools
identified under such sections.
SEC. 14006. STATE INCENTIVE GRANTS.
(a) In General.--
(1) Reservation.--From the total amount reserved under
section 14001(c) that is not used for section 14007, the
Secretary may reserve up to 1 percent for technical assistance
to States to assist them in meeting the objectives of paragraphs
(2), (3), (4), and (5) of section 14005(d).
(2) Remainder.--Of the remaining funds, the Secretary shall,
in fiscal year 2010, make grants to States that have made
significant progress in meeting the objectives of paragraphs
(2), (3), (4), and (5) of section 14005(d).
(b) Basis for Grants.--The Secretary shall determine which States
receive grants under this section, and the amount of those grants, on
the basis of information provided in State applications under section
14005 and such other criteria as the Secretary determines appropriate,
which may include a State's need for assistance to help meet the
objective of paragraphs (2), (3), (4), and (5) of section 14005(d).
[[Page 123 STAT. 284]]
(c) Subgrants to Local Educational Agencies.--Each State receiving a
grant under this section shall use at least 50 percent of the grant to
provide local educational agencies in the State with subgrants based on
their relative shares of funding under part A of title I of the ESEA (20
U.S.C. 6311 et seq.) for the most recent year.
SEC. 14007. INNOVATION FUND.
(a) In General.--
(1) Eligible entities.--For the purposes of this section,
the term ``eligible entity'' means--
(A) a local educational agency; or
(B) a partnership between a nonprofit organization
and--
(i) one or more local educational agencies; or
(ii) a consortium of schools.
(2) Program established.--From the total amount reserved
under section 14001(c), the Secretary may reserve up to
$650,000,000 to establish an Innovation Fund, which shall
consist of academic achievement awards that recognize eligible
entities that meet the requirements described in subsection (b).
(3) Basis for awards.--The Secretary shall make awards to
eligible entities that have made significant gains in closing
the achievement gap as described in subsection (b)(1)--
(A) to allow such eligible entities to expand their
work and serve as models for best practices;
(B) to allow such eligible entities to work in
partnership with the private sector and the
philanthropic community; and
(C) to identify and document best practices that can
be shared, and taken to scale based on demonstrated
success.
(b) Eligibility.--To be eligible for such an award, an eligible
entity shall--
(1) have significantly closed the achievement gaps between
groups of students described in section 1111(b)(2) of the ESEA
(20 U.S.C. 6311(b)(2));
(2) have exceeded the State's annual measurable objectives
consistent with such section 1111(b)(2) for 2 or more
consecutive years or have demonstrated success in significantly
increasing student academic achievement for all groups of
students described in such section through another measure, such
as measures described in section 1111(c)(2) of the ESEA;
(3) have made significant improvement in other areas, such
as graduation rates or increased recruitment and placement of
high-quality teachers and school leaders, as demonstrated with
meaningful data; and
(4) demonstrate that they have established partnerships with
the private sector, which may include philanthropic
organizations, and that the private sector will provide matching
funds in order to help bring results to scale.
(c) Special Rule.--In the case of an eligible entity that includes a
nonprofit organization, the eligible entity shall be considered to have
met the eligibility requirements of paragraphs (1), (2), (3) of
subsection (b) if such nonprofit organization has a record of meeting
such requirements.
[[Page 123 STAT. 285]]
SEC. 14008. STATE REPORTS.
For each year of the program under this title, a State receiving
funds under this title shall submit a report to the Secretary, at such
time and in such manner as the Secretary may require, that describes--
(1) the uses of funds provided under this title within the
State;
(2) how the State distributed the funds it received under
this title;
(3) the number of jobs that the Governor estimates were
saved or created with funds the State received under this title;
(4) tax increases that the Governor estimates were averted
because of the availability of funds from this title;
(5) the State's progress in reducing inequities in the
distribution of highly qualified teachers, in implementing a
State longitudinal data system, and in developing and
implementing valid and reliable assessments for limited English
proficient students and children with disabilities;
(6) the tuition and fee increases for in-State students
imposed by public institutions of higher education in the State
during the period of availability of funds under this title, and
a description of any actions taken by the State to limit those
increases;
(7) the extent to which public institutions of higher
education maintained, increased, or decreased enrollment of in-
State students, including students eligible for Pell Grants or
other need-based financial assistance; and
(8) a description of each modernization, renovation and
repair project funded, which shall include the amounts awarded
and project costs.
SEC. 14009. EVALUATION.
The Comptroller General of the United States shall conduct
evaluations of the programs under sections 14006 and 14007 which shall
include, but not be limited to, the criteria used for the awards made,
the States selected for awards, award amounts, how each State used the
award received, and the impact of this funding on the progress made
toward closing achievement gaps.
SEC. 14010. SECRETARY'S REPORT TO CONGRESS.
The Secretary shall submit a report to the Committee on Education
and Labor of the House of Representatives, the Committee on Health,
Education, Labor, and Pensions of the Senate, and the Committees on
Appropriations of the House of Representatives and of the Senate, not
less than 6 months following the submission of State reports, that
evaluates the information provided in the State reports under section
14008 and the information required by section 14005(b)(3) including
State-by-State information.
SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.
No recipient of funds under this title shall use such funds to
provide financial assistance to students to attend private elementary or
secondary schools.
SEC. 14012. FISCAL RELIEF.
(a) In General.--For <<NOTE: Waiver authority.>> the purpose of
relieving fiscal burdens on States and local educational agencies that
have experienced
[[Page 123 STAT. 286]]
a precipitous decline in financial resources, the Secretary of Education
may waive or modify any requirement of this title relating to
maintaining fiscal effort.
(b) Duration.--A waiver or modification under this section shall be
for any of fiscal year 2009, fiscal year 2010, or fiscal year 2011, as
determined by the Secretary.
(c) Criteria.--The Secretary shall not grant a waiver or
modification under this section unless the Secretary determines that the
State or local educational agency receiving such waiver or modification
will not provide for elementary and secondary education, for the fiscal
year under consideration, a smaller percentage of the total revenues
available to the State or local educational agency than the amount
provided for such purpose in the preceding fiscal year.
(d) Maintenance of Effort.--Upon prior approval from the Secretary,
a State or local educational agency that receives funds under this title
may treat any portion of such funds that is used for elementary,
secondary, or postsecondary education as non-Federal funds for the
purpose of any requirement to maintain fiscal effort under any other
program, including part C of the Individuals with Disabilities Education
Act (20 U.S.C. 1431 et seq.), administered by the Secretary.
(e) Subsequent Level of Effort.--Notwithstanding (d), the level of
effort required by a State or local educational agency for the following
fiscal year shall not be reduced.
SEC. 14013. DEFINITIONS.
Except as otherwise provided in this title, as used in this title--
(1) the terms ``elementary education'' and ``secondary
education'' have the meaning given such terms under State law;
(2) the term ``high-need local educational agency'' means a
local educational agency--
(A) that serves not fewer than 10,000 children from
families with incomes below the poverty line; or
(B) for which not less than 20 percent of the
children served by the agency are from families with
incomes below the poverty line;
(3) the term ``institution of higher education'' has the
meaning given such term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001);
(4) the term ``Secretary'' means the Secretary of Education;
(5) the term ``State'' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico; and
(6) any other term used that is defined in section 9101 of
the ESEA (20 U.S.C. 7801) shall have the meaning given the term
in such section.
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
SEC. 1501. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' has the meaning given under
section 551 of title 5, United States Code.
[[Page 123 STAT. 287]]
(2) Board.--The term ``Board'' means the Recovery
Accountability and Transparency Board established in section
1521.
(3) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(4) Covered funds.--The term ``covered funds'' means any
funds that are expended or obligated from appropriations made
under this Act.
(5) Panel.--The term ``Panel'' means the Recovery
Independent Advisory Panel established in section 1541.
Subtitle A--Transparency and Oversight Requirements
SEC. 1511. CERTIFICATIONS.
With respect to covered funds made available to State or local
governments for infrastructure investments, the Governor, mayor, or
other chief executive, as appropriate, shall certify that the
infrastructure investment has received the full review and vetting
required by law and that the chief executive accepts responsibility that
the infrastructure investment is an appropriate use of taxpayer dollars.
Such <<NOTE: Web posting.>> certification shall include a description of
the investment, the estimated total cost, and the amount of covered
funds to be used, and shall be posted on a website and linked to the
website established by section 1526. A State or local agency may not
receive infrastructure investment funding from funds made available in
this Act unless this certification is made and posted.
SEC. 1512. REPORTS ON <<NOTE: Jobs Accountability Act.>> USE OF FUNDS.
(a) Short Title.--This section may be cited as the ``Jobs
Accountability Act''.
(b) Definitions.--In this section:
(1) Recipient.--The term ``recipient''--
(A) means any entity that receives recovery funds
directly from the Federal Government (including recovery
funds received through grant, loan, or contract) other
than an individual; and
(B) includes a State that receives recovery funds.
(2) Recovery funds.--The term ``recovery funds'' means any
funds that are made available from appropriations made under
this Act.
(c) Recipient Reports.--Not later than 10 days after the end of each
calendar quarter, each recipient that received recovery funds from a
Federal agency shall submit a report to that agency that contains--
(1) the total amount of recovery funds received from that
agency;
(2) the amount of recovery funds received that were expended
or obligated to projects or activities; and
(3) a detailed list of all projects or activities for which
recovery funds were expended or obligated, including--
(A) the name of the project or activity;
(B) a description of the project or activity;
(C) an evaluation of the completion status of the
project or activity;
[[Page 123 STAT. 288]]
(D) an estimate of the number of jobs created and
the number of jobs retained by the project or activity;
and
(E) for infrastructure investments made by State and
local governments, the purpose, total cost, and
rationale of the agency for funding the infrastructure
investment with funds made available under this Act, and
name of the person to contact at the agency if there are
concerns with the infrastructure investment.
(4) Detailed information on any subcontracts or subgrants
awarded by the recipient to include the data elements required
to comply with the Federal Funding Accountability and
Transparency Act of 2006 (Public Law 109-282), allowing
aggregate reporting on awards below $25,000 or to individuals,
as prescribed by the Director of the Office of Management and
Budget.
(d) Agency Reports.--Not later than 30 days after the end of each
calendar quarter, each agency that made recovery funds available to any
recipient shall make the information in reports submitted under
subsection (c) publicly available by posting the information on a
website.
(e) Other Reports.--The Congressional Budget Office and the
Government Accountability Office shall comment on the information
described in subsection (c)(3)(D) for any reports submitted under
subsection (c). Such comments shall be due within 45 days after such
reports are submitted.
(f) Compliance.--Within 180 days of enactment, as a condition of
receipt of funds under this Act, Federal agencies shall require any
recipient of such funds to provide the information required under
subsection (c).
(g) Guidance.--Federal agencies, in coordination with the Director
of the Office of Management and Budget, shall provide for user-friendly
means for recipients of covered funds to meet the requirements of this
section.
(h) Registration.--Funding recipients required to report information
per subsection (c)(4) must register with the Central Contractor
Registration database or complete other registration requirements as
determined by the Director of the Office of Management and Budget.
SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.
(a) In General.--In consultation with the Director of the Office of
Management and Budget and the Secretary of the Treasury, the Chairperson
of the Council of Economic Advisers shall submit quarterly reports to
the Committees on Appropriations of the Senate and House of
Representatives that detail the impact of programs funded through
covered funds on employment, estimated economic growth, and other key
economic indicators.
(b) Submission of Reports.--
(1) First report.--The first report submitted under
subsection (a) shall be submitted not later than 45 days after
the end of the first full quarter following the date of
enactment of this Act.
(2) Last <<NOTE: Applicability.>> report.--The last report
required to be submitted under subsection (a) shall apply to the
quarter in which the Board terminates under section 1530.
[[Page 123 STAT. 289]]
SEC. 1514. INSPECTOR GENERAL REVIEWS.
(a) Reviews.--Any inspector general of a Federal department or
executive agency shall review, as appropriate, any concerns raised by
the public about specific investments using funds made available in this
Act. Any findings of such reviews not related to an ongoing criminal
proceeding shall be relayed immediately to the head of the department or
agency concerned. In <<NOTE: Web posting.>> addition, the findings of
such reviews, along with any audits conducted by any inspector general
of funds made available in this Act, shall be posted on the inspector
general's website and linked to the website established by section 1526,
except that portions of reports may be redacted to the extent the
portions would disclose information that is protected from public
disclosure under sections 552 and 552a of title 5, United States Code.
SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN RECORDS AND
EMPLOYEES.
(a) Access.--With respect to each contract or grant awarded using
covered funds, any representative of an appropriate inspector general
appointed under section 3 or 8G of the Inspector General Act of 1978 (5
U.S.C. App.), is authorized--
(1) to examine any records of the contractor or grantee, any
of its subcontractors or subgrantees, or any State or local
agency administering such contract, that pertain to, and involve
transactions relating to, the contract, subcontract, grant, or
subgrant; and
(2) to interview any officer or employee of the contractor,
grantee, subgrantee, or agency regarding such transactions.
(b) Relationship to Existing Authority.--Nothing in this section
shall be interpreted to limit or restrict in any way any existing
authority of an inspector general.
Subtitle B--Recovery Accountability and Transparency Board
SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND TRANSPARENCY
BOARD.
There is established the Recovery Accountability and Transparency
Board to coordinate and conduct oversight of covered funds to prevent
fraud, waste, and abuse.
SEC. 1522. COMPOSITION OF BOARD.
(a) Chairperson.--
(1) Designation <<NOTE: President.>> or appointment.--The
President shall--
(A) designate the Deputy Director for Management of
the Office of Management and Budget to serve as
Chairperson of the Board;
(B) designate another Federal officer who was
appointed by the President to a position that required
the advice and consent of the Senate, to serve as
Chairperson of the Board; or
(C) appoint an individual as the Chairperson of the
Board, by and with the advice and consent of the Senate.
(2) Compensation.--
(A) Designation of federal officer.--If the
President designates a Federal officer under paragraph
(1)(A)
[[Page 123 STAT. 290]]
or (B) to serve as Chairperson, that Federal officer may
not receive additional compensation for services
performed as Chairperson.
(B) Appointment of non-federal officer.--If the
President appoints an individual as Chairperson under
paragraph (1)(C), that individual shall be compensated
at the rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code.
(b) Members.--The members of the Board shall include--
(1) the Inspectors General of the Departments of
Agriculture, Commerce, Education, Energy, Health and Human
Services, Homeland Security, Justice, Transportation, Treasury,
and the Treasury Inspector General for Tax Administration; and
(2) any other Inspector General as designated by the
President from any agency that expends or obligates covered
funds.
SEC. 1523. FUNCTIONS OF THE BOARD.
(a) Functions.--
(1) In general.--The Board shall coordinate and conduct
oversight of covered funds in order to prevent fraud, waste, and
abuse.
(2) Specific functions.--The functions of the Board shall
include--
(A) reviewing whether the reporting of contracts and
grants using covered funds meets applicable standards
and specifies the purpose of the contract or grant and
measures of performance;
(B) reviewing whether competition requirements
applicable to contracts and grants using covered funds
have been satisfied;
(C) auditing or reviewing covered funds to determine
whether wasteful spending, poor contract or grant
management, or other abuses are occurring and referring
matters it considers appropriate for investigation to
the inspector general for the agency that disbursed the
covered funds;
(D) reviewing whether there are sufficient qualified
acquisition and grant personnel overseeing covered
funds;
(E) reviewing whether personnel whose duties involve
acquisitions or grants made with covered funds receive
adequate training; and
(F) reviewing whether there are appropriate
mechanisms for interagency collaboration relating to
covered funds, including coordinating and collaborating
to the extent practicable with the Inspectors General
Council on Integrity and Efficiency established by the
Inspector General Reform Act of 2008 (Public Law 110-
409).
(b) Reports.--
(1) Flash and other reports.--The Board shall submit to the
President and Congress, including the Committees on
Appropriations of the Senate and House of Representatives,
reports, to be known as ``flash reports'', on potential
management and funding problems that require immediate
attention. The Board also shall submit to Congress such other
reports as the Board considers appropriate on the use and
benefits of funds made available in this Act.
[[Page 123 STAT. 291]]
(2) Quarterly reports.--The Board shall submit quarterly
reports to the President and Congress, including the Committees
on Appropriations of the Senate and House of Representatives,
summarizing the findings of the Board and the findings of
inspectors general of agencies. The Board may submit additional
reports as appropriate.
(3) Annual reports.--The Board shall submit annual reports
to the President and Congress, including the Committees on
Appropriations of the Senate and House of Representatives,
consolidating applicable quarterly reports on the use of covered
funds.
(4) Public availability.--
(A) In general.--All <<NOTE: Web posting.>> reports
submitted under this subsection shall be made publicly
available and posted on the website established by
section 1526.
(B) Redactions.--Any portion of a report submitted
under this subsection may be redacted when made publicly
available, if that portion would disclose information
that is not subject to disclosure under sections 552 and
552a of title 5, United States Code.
(c) Recommendations.--
(1) In general.--The Board shall make recommendations to
agencies on measures to prevent fraud, waste, and abuse relating
to covered funds.
(2) Responsive reports.--Not later than 30 days after
receipt of a recommendation under paragraph (1), an agency shall
submit a report to the President, the congressional committees
of jurisdiction, including the Committees on Appropriations of
the Senate and House of Representatives, and the Board on--
(A) whether the agency agrees or disagrees with the
recommendations; and
(B) any actions the agency will take to implement
the recommendations.
SEC. 1524. POWERS OF THE BOARD.
(a) In General.--The <<NOTE: Audits.>> Board shall conduct audits
and reviews of spending of covered funds and coordinate on such
activities with the inspectors general of the relevant agency to avoid
duplication and overlap of work.
(b) Audits and Reviews.--The Board may--
(1) conduct its own independent audits and reviews relating
to covered funds; and
(2) collaborate on audits and reviews relating to covered
funds with any inspector general of an agency.
(c) Authorities.--
(1) Audits and reviews.--In conducting audits and reviews,
the Board shall have the authorities provided under section 6 of
the Inspector General Act of 1978 (5 U.S.C. App.). Additionally,
the Board may issue subpoenas to compel the testimony of persons
who are not Federal officers or employees and may enforce such
subpoenas in the same manner as provided for inspector general
subpoenas under section 6 of the Inspector General Act of 1978
(5 U.S.C. App.).
(2) Standards and guidelines.--The Board shall carry out the
powers under subsections (a) and (b) in accordance
[[Page 123 STAT. 292]]
with section 4(b)(1) of the Inspector General Act of 1978 (5
U.S.C. App.).
(d) Public Hearings.--The Board may hold public hearings and Board
personnel may conduct necessary inquiries. The head of each agency shall
make all officers and employees of that agency available to provide
testimony to the Board and Board personnel. The Board may issue
subpoenas to compel the testimony of persons who are not Federal
officers or employees at such public hearings. Any such subpoenas may be
enforced in the same manner as provided for inspector general subpoenas
under section 6 of the Inspector General Act of 1978 (5 U.S.C. App.).
(e) Contracts.--The Board may enter into contracts to enable the
Board to discharge its duties under this subtitle, including contracts
and other arrangements for audits, studies, analyses, and other services
with public agencies and with private persons, and make such payments as
may be necessary to carry out the duties of the Board.
(f) Transfer of Funds.--The Board may transfer funds appropriated to
the Board for expenses to support administrative support services and
audits, reviews, or other activities related to oversight by the Board
of covered funds to any office of inspector general, the Office of
Management and Budget, the General Services Administration, and the
Panel.
SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.
(a) Employment and Personnel Authorities.--
(1) In general.--
(A) Authorities.--Subject to paragraph (2), the
Board may exercise the authorities of subsections (b)
through (i) of section 3161 of title 5, United States
Code (without regard to subsection (a) of that section).
(B) Application.--For purposes of exercising the
authorities described under subparagraph (A), the term
``Chairperson of the Board'' shall be substituted for
the term ``head of a temporary organization''.
(C) Consultation.--In exercising the authorities
described under subparagraph (A), the Chairperson shall
consult with members of the Board.
(2) Employment authorities.--In exercising the employment
authorities under subsection (b) of section 3161 of title 5,
United States Code, as provided under paragraph (1) of this
subsection--
(A) paragraph (2) of subsection (b) of section 3161
of that title (relating to periods of appointments)
shall not apply; and
(B) no period of appointment may exceed the date on
which the Board terminates under section 1530.
(b) Information and Assistance.--
(1) In general.--Upon request of the Board for information
or assistance from any agency or other entity of the Federal
Government, the head of such entity shall, insofar as is
practicable and not in contravention of any existing law,
furnish such information or assistance to the Board, or an
authorized designee.
(2) Report of refusals.--Whenever information or assistance
requested by the Board is, in the judgment of the Board,
unreasonably refused or not provided, the Board shall report
[[Page 123 STAT. 293]]
the circumstances to the congressional committees of
jurisdiction, including the Committees on Appropriations of the
Senate and House of Representatives, without delay.
(c) Administrative Support.--The General Services Administration
shall provide the Board with administrative support services, including
the provision of office space and facilities.
SEC. 1526. BOARD WEBSITE.
(a) Establishment.--The <<NOTE: Deadline. Public
information.>> Board shall establish and maintain, no later than 30 days
after enactment of this Act, a user-friendly, public-facing website to
foster greater accountability and transparency in the use of covered
funds.
(b) Purpose.--The website established and maintained under
subsection (a) shall be a portal or gateway to key information relating
to this Act and provide connections to other Government websites with
related information.
(c) Content and Function.--
In <<NOTE: Contracts. Grants.>> establishing the website established and
maintained under subsection (a), the Board shall ensure the following:
(1) The website shall provide materials explaining what this
Act means for citizens. The materials shall be easy to
understand and regularly updated.
(2) The website shall provide accountability information,
including findings from audits, inspectors general, and the
Government Accountability Office.
(3) The website shall provide data on relevant economic,
financial, grant, and contract information in user-friendly
visual presentations to enhance public awareness of the use of
covered funds.
(4) The website shall provide detailed data on contracts
awarded by the Federal Government that expend covered funds,
including information about the competitiveness of the
contracting process, information about the process that was used
for the award of contracts, and for contracts over $500,000 a
summary of the contract.
(5) The website shall include printable reports on covered
funds obligated by month to each State and congressional
district.
(6) The website shall provide a means for the public to give
feedback on the performance of contracts that expend covered
funds.
(7) The website shall include detailed information on
Federal Government contracts and grants that expend covered
funds, to include the data elements required to comply with the
Federal Funding Accountability and Transparency Act of 2006
(Public Law 109-282), allowing aggregate reporting on awards
below $25,000 or to individuals, as prescribed by the Director
of the Office of Management and Budget.
(8) The website shall provide a link to estimates of the
jobs sustained or created by the Act.
(9) The website shall provide a link to information about
announcements of grant competitions and solicitations for
contracts to be awarded.
(10) The website shall include appropriate links to other
government websites with information concerning covered funds,
including Federal agency and State websites.
[[Page 123 STAT. 294]]
(11) The <<NOTE: Plan.>> website shall include a plan from
each Federal agency for using funds made available in this Act
to the agency.
(12) The website shall provide information on Federal
allocations of formula grants and awards of competitive grants
using covered funds.
(13) The website shall provide information on Federal
allocations of mandatory and other entitlement programs by
State, county, or other appropriate geographical unit.
(14) To the extent practical, the website shall provide,
organized by the location of the job opportunities involved,
links to and information about how to access job opportunities,
including, if possible, links to or information about local
employment agencies, job banks operated by State workforce
agencies, the Department of Labor's CareerOneStop website,
State, local and other public agencies receiving Federal
funding, and private firms contracted to perform work with
Federal funding, in order to direct job seekers to job
opportunities created by this Act.
(15) The website shall be enhanced and updated as necessary
to carry out the purposes of this subtitle.
(d) Waiver.--The Board may exclude posting contractual or other
information on the website on a case-by-case basis when necessary to
protect national security or to protect information that is not subject
to disclosure under sections 552 and 552a of title 5, United States
Code.
SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL.
(a) Independent Authority.--Nothing in this subtitle shall affect
the independent authority of an inspector general to determine whether
to conduct an audit or investigation of covered funds.
(b) Requests by Board.--If <<NOTE: Deadline. Reports.>> the Board
requests that an inspector general conduct or refrain from conducting an
audit or investigation and the inspector general rejects the request in
whole or in part, the inspector general shall, not later than 30 days
after rejecting the request, submit a report to the Board, the head of
the applicable agency, and the congressional committees of jurisdiction,
including the Committees on Appropriations of the Senate and House of
Representatives. The report shall state the reasons that the inspector
general has rejected the request in whole or in part. The inspector
general's decision shall be final.
SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE AUDITORS.
The Board shall coordinate its oversight activities with the
Comptroller General of the United States and State auditors.
SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as necessary to
carry out this subtitle.
SEC. 1530. TERMINATION OF THE BOARD.
The Board shall terminate on September 30, 2013.
[[Page 123 STAT. 295]]
Subtitle C--Recovery Independent Advisory Panel
SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.
(a) Establishment.--There is established the Recovery Independent
Advisory Panel.
(b) Membership.--The <<NOTE: President.>> Panel shall be composed of
5 members who shall be appointed by the President.
(c) Qualifications.--Members shall be appointed on the basis of
expertise in economics, public finance, contracting, accounting, or any
other relevant field.
(d) Initial Meeting.--Not <<NOTE: Deadline.>> later than 30 days
after the date on which all members of the Panel have been appointed,
the Panel shall hold its first meeting.
(e) Meetings.--The Panel shall meet at the call of the Chairperson
of the Panel.
(f) Quorum.--A majority of the members of the Panel shall constitute
a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Panel shall select a
Chairperson and Vice Chairperson from among its members.
SEC. 1542. DUTIES OF THE PANEL.
The <<NOTE: Recommen- dations.>> Panel shall make recommendations to
the Board on actions the Board could take to prevent fraud, waste, and
abuse relating to covered funds.
SEC. 1543. POWERS OF THE PANEL.
(a) Hearings.--The Panel may hold such hearings, sit and act at such
times and places, take such testimony, and receive such evidence as the
Panel considers advisable to carry out this subtitle.
(b) Information From Federal Agencies.--The Panel may secure
directly from any agency such information as the Panel considers
necessary to carry out this subtitle. Upon request of the Chairperson of
the Panel, the head of such agency shall furnish such information to the
Panel.
(c) Postal Services.--The Panel may use the United States mails in
the same manner and under the same conditions as agencies of the Federal
Government.
(d) Gifts.--The Panel may accept, use, and dispose of gifts or
donations of services or property.
SEC. 1544. PANEL PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Panel who is not an
officer or employee of the Federal Government shall be compensated at a
rate equal to the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties of the
Panel. All members of the Panel who are officers or employees of the
United States shall serve without compensation in addition to that
received for their services as officers or employees of the United
States.
[[Page 123 STAT. 296]]
(b) Travel Expenses.--The members of the Panel shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or regular
places of business in the performance of services for the Panel.
(c) Staff.--
(1) In general.--The Chairperson of the Panel may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary to enable the Panel to perform its
duties. The employment of an executive director shall be subject
to confirmation by the Panel.
(2) Compensation.--The Chairperson of the Panel may fix the
compensation of the executive director and other personnel
without regard to chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification of
positions and General Schedule pay rates, except that the rate
of pay for the executive director and other personnel may not
exceed the rate payable for level V of the Executive Schedule
under section 5316 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any
personnel of the Panel who are employees shall be
employees under section 2105 of title 5, United States
Code, for purposes of chapters 63, 81, 83, 84, 85, 87,
89, 89A, 89B, and 90 of that title.
(B) Members of panel.--Subparagraph (A) shall not be
construed to apply to members of the Panel.
(d) Detail of Government Employees.--Any Federal Government employee
may be detailed to the Panel without reimbursement, and such detail
shall be without interruption or loss of civil service status or
privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Panel may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code, at rates for
individuals which do not exceed the daily equivalent of the annual rate
of basic pay prescribed for level V of the Executive Schedule under
section 5316 of such title.
(f) Administrative Support.--The General Services Administration
shall provide the Panel with administrative support services, including
the provision of office space and facilities.
SEC. 1545. TERMINATION OF THE PANEL.
The Panel shall terminate on September 30, 2013.
SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as necessary to
carry out this subtitle.
Subtitle D--Additional Accountability and Transparency Requirements
SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.
Although <<NOTE: Waiver authority.>> this Act provides supplemental
appropriations for programs, projects, and activities in existing
Treasury accounts,
[[Page 123 STAT. 297]]
to facilitate tracking these funds through Treasury and agency
accounting systems, the Secretary of the Treasury shall ensure that all
funds appropriated in this Act shall be established in separate Treasury
accounts, unless a waiver from this provision is approved by the
Director of the Office of Management and Budget.
SEC. 1552. SET-ASIDE FOR STATE AND LOCAL GOVERNMENT REPORTING AND
RECORDKEEPING.
Federal agencies receiving funds under this Act, may, after
following the notice and comment rulemaking requirements under the
Administrative Procedures Act (5 U.S.C. 500), reasonably adjust
applicable limits on administrative expenditures for Federal awards to
help award recipients defray the costs of data collection requirements
initiated pursuant to this Act.
SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
WHISTLEBLOWERS.
(a) Prohibition of Reprisals.--An employee of any non-Federal
employer receiving covered funds may not be discharged, demoted, or
otherwise discriminated against as a reprisal for disclosing, including
a disclosure made in the ordinary course of an employee's duties, to the
Board, an inspector general, the Comptroller General, a member of
Congress, a State or Federal regulatory or law enforcement agency, a
person with supervisory authority over the employee (or such other
person working for the employer who has the authority to investigate,
discover, or terminate misconduct), a court or grand jury, the head of a
Federal agency, or their representatives, information that the employee
reasonably believes is evidence of--
(1) gross mismanagement of an agency contract or grant
relating to covered funds;
(2) a gross waste of covered funds;
(3) a substantial and specific danger to public health or
safety related to the implementation or use of covered funds;
(4) an abuse of authority related to the implementation or
use of covered funds; or
(5) a violation of law, rule, or regulation related to an
agency contract (including the competition for or negotiation of
a contract) or grant, awarded or issued relating to covered
funds.
(b) Investigation of Complaints.--
(1) In general.--A person who believes that the person has
been subjected to a reprisal prohibited by subsection (a) may
submit a complaint regarding the reprisal to the appropriate
inspector general. Except as provided under paragraph (3),
unless the inspector general determines that the complaint is
frivolous, does not relate to covered funds, or another Federal
or State judicial or administrative proceeding has previously
been invoked to resolve such complaint, the inspector general
shall investigate the complaint and, upon completion of such
investigation, submit a report of the findings of the
investigation to the person, the person's employer, the head of
the appropriate agency, and the Board.
(2) Time limitations for actions.--
(A) In general.--Except <<NOTE: Deadline.>> as
provided under subparagraph (B), the inspector general
shall, not later than 180 days after receiving a
complaint under paragraph (1)--
[[Page 123 STAT. 298]]
(i) make <<NOTE: Determination.>> a
determination that the complaint is frivolous,
does not relate to covered funds, or another
Federal or State judicial or administrative
proceeding has previously been invoked to resolve
such complaint; or
(ii) submit <<NOTE: Reports.>> a report under
paragraph (1).
(B) Extensions.--
(i) Voluntary extension agreed to between
inspector general and complainant.--If the
inspector general is unable to complete an
investigation under this section in time to submit
a report within the 180-day period specified under
subparagraph (A) and the person submitting the
complaint agrees to an extension of time, the
inspector general shall submit a report under
paragraph (1) within such additional period of
time as shall be agreed upon between the inspector
general and the person submitting the complaint.
(ii) Extension granted by inspector general.--
If the inspector general is unable to complete an
investigation under this section in time to submit
a report within the 180-day period specified under
subparagraph (A), the inspector general may extend
the period for not more than 180 days without
agreeing with the person submitting the complaint
to such extension, provided that the inspector
general provides a written explanation (subject to
the authority to exclude information under
paragraph (4)(C)) for the decision, which shall be
provided to both the person submitting the
complaint and the non-Federal employer.
(iii) Semi-annual report on extensions.--The
inspector general shall include in semi-annual
reports to Congress a list of those investigations
for which the inspector general received an
extension.
(3) Discretion not to investigate complaints.--
(A) In general.--The inspector general may decide
not to conduct or continue an investigation under this
section upon providing to the person submitting the
complaint and the non-Federal employer a written
explanation (subject to the authority to exclude
information under paragraph (4)(C)) for such decision.
(B) Assumption of rights to civil remedy.--Upon
receipt of an explanation of a decision not to conduct
or continue an investigation under subparagraph (A), the
person submitting a complaint shall immediately assume
the right to a civil remedy under subsection (c)(3) as
if the 210-day period specified under such subsection
has already passed.
(C) Semi-annual report.--The inspector general shall
include in semi-annual reports to Congress a list of
those investigations the inspector general decided not
to conduct or continue under this paragraph.
(4) Access to investigative file of inspector general.--
(A) In general.--The person alleging a reprisal
under this section shall have access to the
investigation file of
[[Page 123 STAT. 299]]
the appropriate inspector general in accordance with
section 552a of title 5, United States Code (commonly
referred to as the ``Privacy Act''). The investigation
of the inspector general shall be deemed closed for
purposes of disclosure under such section when an
employee files an appeal to an agency head or a court of
competent jurisdiction.
(B) Civil action.--In the event the person alleging
the reprisal brings suit under subsection (c)(3), the
person alleging the reprisal and the non-Federal
employer shall have access to the investigative file of
the inspector general in accordance with the Privacy
Act.
(C) Exception.--The inspector general may exclude
from disclosure--
(i) information protected from disclosure by a
provision of law; and
(ii) any additional information the inspector
general determines disclosure of which would
impede a continuing investigation, provided that
such information is disclosed once such disclosure
would no longer impede such investigation, unless
the inspector general determines that disclosure
of law enforcement techniques, procedures, or
information could reasonably be expected to risk
circumvention of the law or disclose the identity
of a confidential source.
(5) Privacy of information.--An inspector general
investigating an alleged reprisal under this section may not
respond to any inquiry or disclose any information from or about
any person alleging such reprisal, except in accordance with the
provisions of section 552a of title 5, United States Code, or as
required by any other applicable Federal law.
(c) Remedy and Enforcement Authority.--
(1) Burden of proof.--
(A) Disclosure as contributing factor in reprisal.--
(i) In general.--A person alleging a reprisal
under this section shall be deemed to have
affirmatively established the occurrence of the
reprisal if the person demonstrates that a
disclosure described in subsection (a) was a
contributing factor in the reprisal.
(ii) Use of circumstantial evidence.--A
disclosure may be demonstrated as a contributing
factor in a reprisal for purposes of this
paragraph by circumstantial evidence, including--
(I) evidence that the official
undertaking the reprisal knew of the
disclosure; or
(II) evidence that the reprisal
occurred within a period of time after
the disclosure such that a reasonable
person could conclude that the
disclosure was a contributing factor in
the reprisal.
(B) Opportunity for rebuttal.--The head of an agency
may not find the occurrence of a reprisal with respect
to a reprisal that is affirmatively established under
subparagraph (A) if the non-Federal employer
demonstrates by clear and convincing evidence that the
non-Federal employer would have taken the action
constituting the reprisal in the absence of the
disclosure.
[[Page 123 STAT. 300]]
(2) Agency action.--
Not <<NOTE: Deadline. Determination. Relief orders.>> later than
30 days after receiving an inspector general report under
subsection (b), the head of the agency concerned shall determine
whether there is sufficient basis to conclude that the non-
Federal employer has subjected the complainant to a reprisal
prohibited by subsection (a) and shall either issue an order
denying relief in whole or in part or shall take 1 or more of
the following actions:
(A) Order the employer to take affirmative action to
abate the reprisal.
(B) Order the employer to reinstate the person to
the position that the person held before the reprisal,
together with the compensation (including back pay),
compensatory damages, employment benefits, and other
terms and conditions of employment that would apply to
the person in that position if the reprisal had not been
taken.
(C) Order the employer to pay the complainant an
amount equal to the aggregate amount of all costs and
expenses (including attorneys' fees and expert
witnesses' fees) that were reasonably incurred by the
complainant for, or in connection with, bringing the
complaint regarding the reprisal, as determined by the
head of the agency or a court of competent jurisdiction.
(3) Civil action.--If <<NOTE: Deadlines.>> the head of an
agency issues an order denying relief in whole or in part under
paragraph (1), has not issued an order within 210 days after the
submission of a complaint under subsection (b), or in the case
of an extension of time under subsection (b)(2)(B)(i), within 30
days after the expiration of the extension of time, or decides
under subsection (b)(3) not to investigate or to discontinue an
investigation, and there is no showing that such delay or
decision is due to the bad faith of the complainant, the
complainant shall be deemed to have exhausted all administrative
remedies with respect to the complaint, and the complainant may
bring a de novo action at law or equity against the employer to
seek compensatory damages and other relief available under this
section in the appropriate district court of the United States,
which shall have jurisdiction over such an action without regard
to the amount in controversy. Such an action shall, at the
request of either party to the action, be tried by the court
with a jury.
(4) Judicial enforcement of order.--Whenever a person fails
to comply with an order issued under paragraph (2), the head of
the agency shall file an action for enforcement of such order in
the United States district court for a district in which the
reprisal was found to have occurred. In any action brought under
this paragraph, the court may grant appropriate relief,
including injunctive relief, compensatory and exemplary damages,
and attorneys fees and costs.
(5) Judicial review.--Any person adversely affected or
aggrieved by an order issued under paragraph (2) may obtain
review of the order's conformance with this subsection, and any
regulations issued to carry out this section, in the United
States court of appeals for a circuit in which the reprisal is
alleged in the order to have occurred.
No <<NOTE: Deadline.>> petition seeking such review may be filed
more than 60 days after issuance of the order by the head of the
agency. Review shall conform to chapter 7 of title 5, United
States Code.
[[Page 123 STAT. 301]]
(d) Nonenforceability of Certain Provisions Waiving Rights and
Remedies or Requiring Arbitration of Disputes.--
(1) Waiver of rights and remedies.--Except as provided under
paragraph (3), the rights and remedies provided for in this
section may not be waived by any agreement, policy, form, or
condition of employment, including by any predispute arbitration
agreement.
(2) Predispute arbitration agreements.--Except as provided
under paragraph (3), no predispute arbitration agreement shall
be valid or enforceable if it requires arbitration of a dispute
arising under this section.
(3) Exception for collective bargaining agreements.--
Notwithstanding paragraphs (1) and (2), an arbitration provision
in a collective bargaining agreement shall be enforceable as to
disputes arising under the collective bargaining agreement.
(e) Requirement to Post Notice of Rights and Remedies.--Any employer
receiving covered funds shall post notice of the rights and remedies
provided under this section.
(f) Rules of Construction.--
(1) No implied authority to retaliate for non-protected
disclosures.--Nothing in this section may be construed to
authorize the discharge of, demotion of, or discrimination
against an employee for a disclosure other than a disclosure
protected by subsection (a) or to modify or derogate from a
right or remedy otherwise available to the employee.
(2) Relationship to state laws.--Nothing in this section may
be construed to preempt, preclude, or limit the protections
provided for public or private employees under State
whistleblower laws.
(g) Definitions.--In this section:
(1) Abuse of authority.--The term ``abuse of authority''
means an arbitrary and capricious exercise of authority by a
contracting official or employee that adversely affects the
rights of any person, or that results in personal gain or
advantage to the official or employee or to preferred other
persons.
(2) Covered funds.--The term ``covered funds'' means any
contract, grant, or other payment received by any non-Federal
employer if--
(A) the Federal Government provides any portion of
the money or property that is provided, requested, or
demanded; and
(B) at least some of the funds are appropriated or
otherwise made available by this Act.
(3) Employee.--The term ``employee''--
(A) except as provided under subparagraph (B), means
an individual performing services on behalf of an
employer; and
(B) does not include any Federal employee or member
of the uniformed services (as that term is defined in
section 101(a)(5) of title 10, United States Code).
(4) Non-federal employer.--The term ``non-Federal
employer''--
(A) means any employer--
(i) with respect to covered funds--
(I) the contractor, subcontractor,
grantee, or recipient, as the case may
be, if the contractor,
[[Page 123 STAT. 302]]
subcontractor, grantee, or recipient is
an employer; and
(II) any professional membership
organization, certification or other
professional body, any agent or licensee
of the Federal government, or any person
acting directly or indirectly in the
interest of an employer receiving
covered funds; or
(ii) with respect to covered funds received by
a State or local government, the State or local
government receiving the funds and any contractor
or subcontractor of the State or local government;
and
(B) does not mean any department, agency, or other
entity of the Federal Government.
(5) State or local government.--The term ``State or local
government'' means--
(A) the government of each of the several States,
the District of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, the Virgin Islands, the
Commonwealth of the Northern Mariana Islands, or any
other territory or possession of the United States; or
(B) the government of any political subdivision of a
government listed in subparagraph (A).
SEC. 1554. SPECIAL CONTRACTING PROVISIONS.
To the maximum extent possible, contracts funded under this Act
shall be awarded as fixed-price contracts through the use of competitive
procedures. A summary of any contract awarded with such funds that is
not fixed-price and not awarded using competitive procedures shall be
posted in a special section of the website established in section 1526.
TITLE XVI--GENERAL PROVISIONS--THIS ACT
RELATIONSHIP TO OTHER APPROPRIATIONS
Sec. 1601. Each amount appropriated or made available in this Act
is in addition to amounts otherwise appropriated for the fiscal year
involved. Enactment of this Act shall have no effect on the availability
of amounts under the Continuing Appropriations Resolution, 2009
(division A of Public Law 110-329).
PREFERENCE FOR QUICK-START ACTIVITIES
Sec. 1602. In using funds made available in this Act for
infrastructure investment, recipients shall give preference to
activities that can be started and completed expeditiously, including a
goal of using at least 50 percent of the funds for activities that can
be initiated not later than 120 days after the date of the enactment of
this Act. Recipients shall also use grant funds in a manner that
maximizes job creation and economic benefit.
PERIOD OF AVAILABILITY
Sec. 1603. All funds appropriated in this Act shall remain available
for obligation until September 30, 2010, unless expressly provided
otherwise in this Act.
[[Page 123 STAT. 303]]
LIMIT ON FUNDS
Sec. 1604. None of the funds appropriated or otherwise made
available in this Act may be used by any State or local government, or
any private entity, for any casino or other gambling establishment,
aquarium, zoo, golf course, or swimming pool.
BUY AMERICAN
Sec. 1605. Use of American Iron, Steel, and Manufactured Goods. (a)
None of the funds appropriated or otherwise made available by this Act
may be used for a project for the construction, alteration, maintenance,
or repair of a public building or public work unless all of the iron,
steel, and manufactured goods used in the project are produced in the
United States.
(b) Subsection (a) shall <<NOTE: Waiver authority.>> not apply in
any case or category of cases in which the head of the Federal
department or agency involved finds that--
(1) applying subsection (a) would be inconsistent with the
public interest;
(2) iron, steel, and the relevant manufactured goods are not
produced in the United States in sufficient and reasonably
available quantities and of a satisfactory quality; or
(3) inclusion of iron, steel, and manufactured goods
produced in the United States will increase the cost of the
overall project by more than 25 percent.
(c) If <<NOTE: Federal Register, publication.>> the head of a
Federal department or agency determines that it is necessary to waive
the application of subsection (a) based on a finding under subsection
(b), the head of the department or agency shall publish in the Federal
Register a detailed written justification as to why the provision is
being waived.
(d) This <<NOTE: Applicability.>> section shall be applied in a
manner consistent with United States obligations under international
agreements.
WAGE RATE REQUIREMENTS
Sec. 1606. Notwithstanding <<NOTE: Contracts.>> any other provision
of law and in a manner consistent with other provisions in this Act, all
laborers and mechanics employed by contractors and subcontractors on
projects funded directly by or assisted in whole or in part by and
through the Federal Government pursuant to this Act shall be paid wages
at rates not less than those prevailing on projects of a character
similar in the locality as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of title 40, United States
Code. With respect to the labor standards specified in this section, the
Secretary of Labor shall have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.)
and section 3145 of title 40, United States Code.
ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF
FUNDS
Sec. 1607. (a) Certification <<NOTE: Deadline.>> by Governor.--Not
later than 45 days after the date of enactment of this Act, for funds
provided to any State or agency thereof, the Governor of the State shall
certify that: (1) the State will request and use funds provided by this
Act; and (2) the funds will be used to create jobs and promote economic
growth.
[[Page 123 STAT. 304]]
(b) Acceptance by State Legislature.--If funds provided to any State
in any division of this Act are not accepted for use by the Governor,
then acceptance by the State legislature, by means of the adoption of a
concurrent resolution, shall be sufficient to provide funding to such
State.
(c) Distribution.--After the adoption of a State legislature's
concurrent resolution, funding to the State will be for distribution to
local governments, councils of government, public entities, and public-
private entities within the State either by formula or at the State's
discretion.
economic stabilization contracting
Sec. 1608. Reform of Contracting Procedures Under EESA. Section
107(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5217(b)) is amended by inserting ``and individuals with disabilities and
businesses owned by individuals with disabilities (for purposes of this
subsection the term `individual with disability' has the same meaning as
the term `handicapped individual' as that term is defined in section
3(f) of the Small Business Act (15 U.S.C. 632(f)),'' after ``(12 U.S.C.
1441a(r)(4)),''.
Sec. 1609. (a) Findings.--
(1) The National Environmental Policy Act protects public
health, safety and environmental quality: by ensuring
transparency, accountability and public involvement in federal
actions and in the use of public funds;
(2) When President Nixon signed the National Environmental
Policy Act into law on January 1, 1970, he said that the Act
provided the ``direction'' for the country to ``regain a
productive harmony between man and nature'';
(3) The National Environmental Policy Act helps to provide
an orderly process for considering federal actions and funding
decisions and prevents ligation and delay that would otherwise
be inevitable and existed prior to the establishment of the
National Environmental Policy Act.
(b) Adequate resources within this bill must be devoted to ensuring
that applicable environmental reviews under the National Environmental
Policy Act are completed on an expeditious basis and that the shortest
existing applicable process under the National Environmental Policy Act
shall be utilized.
(c) The <<NOTE: President. Reports. Deadlines.>> President shall
report to the Senate Environment and Public Works Committee and the
House Natural Resources Committee every 90 days following the date of
enactment until September 30, 2011 on the status and progress of
projects and activities funded by this Act with respect to compliance
with National Environmental Policy Act requirements and documentation.
Sec. 1610. (a) None of the funds appropriated or otherwise made
available by this Act, for projects initiated after the effective date
of this Act, may be used by an executive agency to enter into any
Federal contract unless such contract is entered into in accordance with
the Federal Property and Administrative Services Act (41 U.S.C. 253) or
chapter 137 of title 10, United States Code, and the Federal Acquisition
Regulation, unless such contract is otherwise authorized by statute to
be entered into without regard to the above referenced statutes.
(b) All projects to be conducted under the authority of the Indian
Self-Determination and Education Assistance Act, the Tribally-Controlled
Schools Act, the Sanitation and Facilities Act, the
[[Page 123 STAT. 305]]
Native American Housing and Self-Determination Assistance Act and the
Buy-Indian Act shall be identified by the appropriate Secretary and the
appropriate Secretary shall incorporate provisions to ensure that the
agreement conforms with the provisions of this Act regarding the timing
for use of funds and transparency, oversight, reporting, and
accountability, including review by the Inspectors General, the
Accountability and Transparency Board, and Government Accountability
Office, consistent with the objectives of this Act.
Sec. 1611. Hiring <<NOTE: Employ American Workers Act.>> American
Workers in Companies Receiving TARP Funding. (a) Short Title.--This
section may be cited as the ``Employ American Workers Act''.
(b) Prohibition.--
(1) In general.--Notwithstanding any other provision of law,
it shall be unlawful for any recipient of funding under title I
of the Emergency Economic Stabilization Act of 2008 (Public Law
110-343) or section 13 of the Federal Reserve Act (12 U.S.C. 342
et seq.) to hire any nonimmigrant described in section
101(a)(15)(h)(i)(b) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in
compliance with the requirements for an H-1B dependent employer
(as defined in section 212(n)(3) of such Act (8 U.S.C.
1182(n)(3))), except that the second sentence of section
212(n)(1)(E)(ii) of such Act shall not apply.
(2) Defined term.--In this subsection, the term ``hire''
means to permit a new employee to commence a period of
employment.
(c) Sunset Provision.--This section shall be effective during the 2-
year period beginning on the date of the enactment of this Act.
Sec. 1612. During the current fiscal year not to exceed 1 percent of
any appropriation made available by this Act may be transferred by an
agency head between such appropriations funded in this Act of that
department or agency: Provided, That such appropriations shall be merged
with and available for the same purposes, and for the same time period,
as the appropriation to which transferred: Provided further,
That <<NOTE: Notification. Deadline.>> the agency head shall notify the
Committees on Appropriations of the Senate and House of Representatives
of the transfer 15 days in advance: Provided further,
That <<NOTE: Notification. Web posting. Deadline.>> notice of any
transfer made pursuant to this authority be posted on the website
established by the Recovery Act Accountability and Transparency Board 15
days following such transfer: Provided further, That the authority
contained in this section is in addition to transfer authorities
otherwise available under current law: Provided further, That the
authority provided in this section shall not apply to any appropriation
that is subject to transfer provisions included elsewhere in this Act.
[[Page 123 STAT. 306]]
DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS
TITLE I--TAX <<NOTE: American Recovery and Reinvestment Tax Act of
2009.>> PROVISIONS
SEC. 1000. SHORT TITLE, ETC.
(a) Short Title.--This <<NOTE: 26 USC 1 note.>> title may be cited
as the ``American Recovery and Reinvestment Tax Act of 2009''.
(b) Reference.--Except <<NOTE: 26 USC 1 et seq.>> as otherwise
expressly provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this title is as
follows:
TITLE I--TAX PROVISIONS
Sec. 1000. Short title, etc.
Subtitle A--Tax Relief for Individuals and Families
PART I--General Tax Relief
Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified
higher education expense for section 529 accounts in 2009 and
2010.
Sec. 1006. Extension of and increase in first-time homebuyer credit;
waiver of requirement to repay.
Sec. 1007. Suspension of tax on portion of unemployment compensation.
Sec. 1008. Additional deduction for State sales tax and excise tax on
the purchase of certain motor vehicles.
PART II--Alternative Minimum Tax Relief
Sec. 1011. Extension of alternative minimum tax relief for nonrefundable
personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption
amount.
Subtitle B--Energy Incentives
PART I--Renewable Energy Incentives
Sec. 1101. Extension of credit for electricity produced from certain
renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy
property.
Sec. 1104. Coordination with renewable energy grants.
PART II--Increased Allocations of New Clean Renewable Energy Bonds and
Qualified Energy Conservation Bonds
Sec. 1111. Increased limitation on issuance of new clean renewable
energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy
conservation bonds.
PART III--Energy Conservation Incentives
Sec. 1121. Extension and modification of credit for nonbusiness energy
property.
Sec. 1122. Modification of credit for residential energy efficient
property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle
refueling property.
PART IV--Modification of Credit for Carbon Dioxide Sequestration
Sec. 1131. Application of monitoring requirements to carbon dioxide used
as a tertiary injectant.
[[Page 123 STAT. 307]]
PART V--Plug-in Electric Drive Motor Vehicles
Sec. 1141. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 1142. Credit for certain plug-in electric vehicles.
Sec. 1143. Conversion kits.
Sec. 1144. Treatment of alternative motor vehicle credit as a personal
credit allowed against AMT.
PART VI--Parity for Transportation Fringe Benefits
Sec. 1151. Increased exclusion amount for commuter transit benefits and
transit passes.
Subtitle C--Tax Incentives for Business
PART I--Temporary Investment Incentives
Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain
depreciable business assets.
PART II--Small Business Provisions
Sec. 1211. 5-year carryback of operating losses of small businesses.
Sec. 1212. Decreased required estimated tax payments in 2009 for certain
small businesses.
PART III--Incentives for New Jobs
Sec. 1221. Incentives to hire unemployed veterans and disconnected
youth.
PART IV--Rules Relating to Debt Instruments
Sec. 1231. Deferral and ratable inclusion of income arising from
business indebtedness discharged by the reacquisition of a
debt instrument.
Sec. 1232. Modifications of rules for original issue discount on certain
high yield obligations.
PART V--Qualified Small Business Stock
Sec. 1241. Special rules applicable to qualified small business stock
for 2009 and 2010.
PART VI--S Corporations
Sec. 1251. Temporary reduction in recognition period for built-in gains
tax.
PART VII--Rules Relating to Ownership Changes
Sec. 1261. Clarification of regulations related to limitations on
certain built-in losses following an ownership change.
Sec. 1262. Treatment of certain ownership changes for purposes of
limitations on net operating loss carryforwards and certain
built-in losses.
Subtitle D--Manufacturing Recovery Provisions
Sec. 1301. Temporary expansion of availability of industrial development
bonds to facilities manufacturing intangible property.
Sec. 1302. Credit for investment in advanced energy facilities.
Subtitle E--Economic Recovery Tools
Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Increase in new markets tax credit.
Sec. 1404. Coordination of low-income housing credit and low-income
housing grants.
Subtitle F--Infrastructure Financing Tools
PART I--Improved Marketability for Tax-Exempt Bonds
Sec. 1501. De minimis safe harbor exception for tax-exempt interest
expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt interest
expense allocation rules for financial institutions.
Sec. 1503. Temporary modification of alternative minimum tax limitations
on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.
PART II--Delay in Application of Withholding Tax on Government
Contractors
Sec. 1511. Delay in application of withholding tax on government
contractors.
[[Page 123 STAT. 308]]
PART III--Tax Credit Bonds for Schools
Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.
PART IV--Build America Bonds
Sec. 1531. Build America bonds.
PART V--Regulated Investment Companies Allowed to Pass-Thru Tax Credit
Bond Credits
Sec. 1541. Regulated investment companies allowed to pass-thru tax
credit bond credits.
Subtitle G--Other Provisions
Sec. 1601. Application of certain labor standards to projects financed
with certain tax-favored bonds.
Sec. 1602. Grants to States for low-income housing projects in lieu of
low-income housing credit allocations for 2009.
Sec. 1603. Grants for specified energy property in lieu of tax credits.
Sec. 1604. Increase in public debt limit.
Subtitle H--Prohibition on Collection of Certain Payments Made Under the
Continued Dumping and Subsidy Offset Act of 2000
Sec. 1701. Prohibition on collection of certain payments made under the
Continued Dumping and Subsidy Offset Act of 2000.
Subtitle I--Trade Adjustment Assistance
Sec. 1800. Short title.
PART I--Trade Adjustment Assistance for Workers
subpart a--trade adjustment assistance for service sector workers
Sec. 1801. Extension of trade adjustment assistance to service sector
and public agency workers; shifts in production.
Sec. 1802. Separate basis for certification.
Sec. 1803. Determinations by Secretary of Labor.
Sec. 1804. Monitoring and reporting relating to service sector.
subpart b--industry notifications following certain affirmative
determinations
Sec. 1811. Notifications following certain affirmative determinations.
Sec. 1812. Notification to Secretary of Commerce.
subpart c--program benefits
Sec. 1821. Qualifying Requirements for Workers.
Sec. 1822. Weekly amounts.
Sec. 1823. Limitations on trade readjustment allowances; allowances for
extended training and breaks in training.
Sec. 1824. Special rules for calculation of eligibility period.
Sec. 1825. Application of State laws and regulations on good cause for
waiver of time limits or late filing of claims.
Sec. 1826. Employment and case management services.
Sec. 1827. Administrative expenses and employment and case management
services.
Sec. 1828. Training funding.
Sec. 1829. Prerequisite education; approved training programs.
Sec. 1830. Pre-layoff and part-time training.
Sec. 1831. On-the-job training.
Sec. 1832. Eligibility for unemployment insurance and program benefits
while in training.
Sec. 1833. Job search and relocation allowances.
subpart d--reemployment trade adjustment assistance program
Sec. 1841. Reemployment trade adjustment assistance program.
subpart e--other matters
Sec. 1851. Office of Trade Adjustment Assistance.
Sec. 1852. Accountability of State agencies; collection and publication
of program data; agreements with States.
[[Page 123 STAT. 309]]
Sec. 1853. Verification of eligibility for program benefits.
Sec. 1854. Collection of data and reports; information to workers.
Sec. 1855. Fraud and recovery of overpayments.
Sec. 1856. Sense of Congress on application of trade adjustment
assistance.
Sec. 1857. Consultations in promulgation of regulations.
Sec. 1858. Technical corrections.
PART II--Trade Adjustment Assistance for Firms
Sec. 1861. Expansion to service sector firms.
Sec. 1862. Modification of requirements for certification.
Sec. 1863. Basis for determinations.
Sec. 1864. Oversight and administration; authorization of
appropriations.
Sec. 1865. Increased penalties for false statements.
Sec. 1866. Annual report on trade adjustment assistance for firms.
Sec. 1867. Technical corrections.
PART III--Trade Adjustment Assistance for Communities
Sec. 1871. Purpose.
Sec. 1872. Trade adjustment assistance for communities.
Sec. 1873. Conforming amendments.
PART IV--Trade Adjustment Assistance for Farmers
Sec. 1881. Definitions.
Sec. 1882. Eligibility.
Sec. 1883. Benefits.
Sec. 1884. Report.
Sec. 1885. Fraud and recovery of overpayments.
Sec. 1886. Determination of increases of imports for certain fishermen.
Sec. 1887. Extension of trade adjustment assistance for farmers.
PART V--General Provisions
Sec. 1891. Effective date.
Sec. 1892. Extension of trade adjustment assistance programs.
Sec. 1893. Termination; related provisions.
Sec. 1894. Government Accountability Office report.
Sec. 1895. Emergency designation.
PART VI--Health Coverage Improvement
Sec. 1899. Short title.
Sec. 1899A. Improvement of the affordability of the credit.
Sec. 1899B. Payment for monthly premiums paid prior to commencement of
advance payments of credit.
Sec. 1899C. TAA recipients not enrolled in training programs eligible
for credit.
Sec. 1899D. TAA pre-certification period rule for purposes of
determining whether there is a 63-day lapse in creditable
coverage.
Sec. 1899E. Continued qualification of family members after certain
events.
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible
individuals and PBGC recipients.
Sec. 1899G. Addition of coverage through voluntary employees'
beneficiary associations.
Sec. 1899H. Notice requirements.
Sec. 1899I. Survey and report on enhanced health coverage tax credit
program.
Sec. 1899J. Authorization of appropriations.
Sec. 1899K. Extension of national emergency grants.
Sec. 1899L. GAO study and report.
Subtitle A--Tax Relief for Individuals and Families
PART I--GENERAL TAX RELIEF
SEC. 1001. MAKING WORK PAY CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
is amended by inserting after section 36 the following new section:
``SEC. 36A. MAKING WORK PAY CREDIT.
``(a) Allowance of Credit.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed
[[Page 123 STAT. 310]]
by this subtitle for the taxable year an amount equal to the lesser of--
``(1) 6.2 percent of earned income of the taxpayer, or
``(2) $400 ($800 in the case of a joint return).
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount allowable as a credit under
subsection (a) (determined without regard to this paragraph and
subsection (c)) for the taxable year shall be reduced (but not
below zero) by 2 percent of so much of the taxpayer's modified
adjusted gross income as exceeds $75,000 ($150,000 in the case
of a joint return).
``(2) Modified adjusted gross income.--For purposes of
subparagraph (A), the term `modified adjusted gross income'
means the adjusted gross income of the taxpayer for the taxable
year increased by any amount excluded from gross income under
section 911, 931, or 933.
``(c) Reduction for Certain Other Payments.--The credit allowed
under subsection (a) for any taxable year shall be reduced by the amount
of any payments received by the taxpayer during such taxable year under
section 2201, and any credit allowed to the taxpayer under section 2202,
of the American Recovery and Reinvestment Tax Act of 2009.
``(d) Definitions and Special Rules.--For purposes of this section--
``(1) Eligible individual.--
``(A) In general.--The term `eligible individual'
means any individual other than--
``(i) any nonresident alien individual,
``(ii) any individual with respect to whom a
deduction under section 151 is allowable to
another taxpayer for a taxable year beginning in
the calendar year in which the individual's
taxable year begins, and
``(iii) an estate or trust.
``(B) Identification number requirement.--Such term
shall not include any individual who does not include on
the return of tax for the taxable year--
``(i) such individual's social security
account number, and
``(ii) in the case of a joint return, the
social security account number of one of the
taxpayers on such return.
For purposes of the preceding sentence, the social
security account number shall not include a TIN issued
by the Internal Revenue Service.
``(2) Earned income.--The term `earned income' has the
meaning given such term by section 32(c)(2), except that such
term shall not include net earnings from self-employment which
are not taken into account in computing taxable income. For
purposes of the preceding sentence, any amount excluded from
gross income by reason of section 112 shall be treated as earned
income which is taken into account in computing taxable income
for the taxable year.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2010.''.
(b) Treatment <<NOTE: 26 USC 36A note.>> of Possessions.--
(1) Payments to possessions.--
[[Page 123 STAT. 311]]
(A) Mirror code possession.--The <<NOTE: Effective
dates.>> Secretary of the Treasury shall pay to each
possession of the United States with a mirror code tax
system amounts equal to the loss to that possession by
reason of the amendments made by this section with
respect to taxable years beginning in 2009 and 2010.
Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government
of the respective possession.
(B) Other possessions.--The <<NOTE: Effective
dates.>> Secretary of the Treasury shall pay to each
possession of the United States which does not have a
mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the
aggregate benefits that would have been provided to
residents of such possession by reason of the amendments
made by this section for taxable years beginning in 2009
and 2010 if a mirror code tax system had been in effect
in such possession. The preceding sentence shall not
apply with respect to any possession of the United
States unless such possession has a plan, which has been
approved by the Secretary of the Treasury, under which
such possession will promptly distribute such payments
to the residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes for any taxable year under section 36A of the
Internal Revenue Code of 1986 (as added by this section) to any
person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of the amendments
made by this section for such taxable year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States, the
income tax system of such possession if the income tax
liability of the residents of such possession under such
system is determined by reference to the income tax laws
of the United States as if such possession were the
United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same
manner as a refund due from the credit allowed under
section 36A of the Internal Revenue Code of 1986 (as
added by this section).
(c) Refunds <<NOTE: 26 USC 36A note.>> Disregarded in the
Administration of Federal Programs and Federally Assisted Programs.--Any
credit or refund allowed or made to any individual by reason of section
36A of the Internal Revenue Code of 1986 (as added by this section) or
by reason of subsection (b) of this section shall not be taken into
account as income and shall not be taken into account as resources for
the month of receipt and the following 2 months,
[[Page 123 STAT. 312]]
for purposes of determining the eligibility of such individual or any
other individual for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any State or
local program financed in whole or in part with Federal funds.
(d) Authority Relating to Clerical Errors.--Section 6213(g)(2)
is <<NOTE: 26 USC 6213.>> amended by striking ``and'' at the end of
subparagraph (L)(ii), by striking the period at the end of subparagraph
(M) and inserting ``, and'', and by adding at the end the following new
subparagraph:
``(N) an omission of the reduction required under
section 36A(c) with respect to the credit allowed under
section 36A or an omission of the correct social
security account number required under section
36A(d)(1)(B).''.
(e) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by inserting ``36A,''
after ``36,''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36A,'' after ``36,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the item
relating to section 36 the following new item:
``Sec. 36A. Making work pay credit.''.
(f) Effective <<NOTE: 26 USC 36A note.>> Date.--This section, and
the amendments made by this section, shall apply to taxable years
beginning after December 31, 2008.
SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.
(a) In General.--Subsection (b) of section 32 <<NOTE: 26 USC
32.>> is amended by adding at the end the following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of any
taxable year beginning in 2009 or 2010--
``(A) Increased credit percentage for 3 or more
qualifying children.--In the case of a taxpayer with 3
or more qualifying children, the credit percentage is 45
percent.
``(B) Reduction of marriage penalty.--
``(i) In general.--The dollar amount in effect
under paragraph (2)(B) shall be $5,000.
``(ii) Inflation adjustment.--In the case of
any taxable year beginning in 2010, the $5,000
amount in clause (i) shall be increased by an
amount equal to--
``(I) such dollar amount, multiplied
by
``(II) the cost of living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year
begins determined by substituting
`calendar year 2008' for `calendar year
1992' in subparagraph (B) thereof.
``(iii) Rounding.--
Subparagraph <<NOTE: Applicability.>> (A) of
subsection (j)(2) shall apply after taking into
account any increase under clause (ii).''.
(b) Effective <<NOTE: 26 USC 32 note.>> Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
[[Page 123 STAT. 313]]
SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.
(a) In General.--Paragraph (4) of section 24(d) <<NOTE: 26 USC
24.>> is amended to read as follows:
``(4) Special rule for 2009 and 2010.--Notwithstanding
paragraph (3), in the case of any taxable year beginning in 2009
or 2010, the dollar amount in effect for such taxable year under
paragraph (1)(B)(i) shall be $3,000.''.
(b) Effective Date.--The <<NOTE: 26 USC 24 note.>> amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.
(a) In General.--Section 25A (relating to Hope scholarship credit)
is amended by redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new subsection:
``(i) American Opportunity Tax Credit.--In the case of any taxable
year beginning in 2009 or 2010--
``(1) Increase in credit.--The Hope Scholarship Credit shall
be an amount equal to the sum of--
``(A) 100 percent of so much of the qualified
tuition and related expenses paid by the taxpayer during
the taxable year (for education furnished to the
eligible student during any academic period beginning in
such taxable year) as does not exceed $2,000, plus
``(B) 25 percent of such expenses so paid as exceeds
$2,000 but does not exceed $4,000.
``(2) Credit allowed for first 4 years of post-secondary
education.--Subparagraphs (A) and <<NOTE: Applicability.>> (C)
of subsection (b)(2) shall be applied by substituting `4' for
`2'.
``(3) Qualified tuition and related expenses to include
required course materials.--Subsection (f)(1)(A) shall be
applied by substituting `tuition, fees, and course materials'
for `tuition and fees'.
``(4) Increase in agi limits for hope scholarship credit.--
In lieu of applying subsection (d) with respect to the Hope
Scholarship Credit, such credit (determined without regard to
this paragraph) shall be reduced (but not below zero) by the
amount which bears the same ratio to such credit (as so
determined) as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted gross
income (as defined in subsection (d)(3)) for such
taxable year, over
``(ii) $80,000 ($160,000 in the case of a
joint return), bears to
``(B) $10,000 ($20,000 in the case of a joint
return).
``(5) Credit allowed against alternative minimum tax.--In
the case of a taxable year to which section 26(a)(2) does not
apply, so much of the credit allowed under subsection (a) as is
attributable to the Hope Scholarship Credit shall not exceed the
excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this subsection and sections 23,
25D, and 30D) and section 27 for the taxable year.
[[Page 123 STAT. 314]]
Any reference in this section or section 24, 25, 26, 25B, 904,
or 1400C to a credit allowable under this subsection shall be
treated as a reference to so much of the credit allowable under
subsection (a) as is attributable to the Hope Scholarship
Credit.
``(6) Portion of credit made refundable.--40 percent of so
much of the credit allowed under subsection (a) as is
attributable to the Hope Scholarship Credit (determined after
application of paragraph (4) and without regard to this
paragraph and section 26(a)(2) or paragraph (5), as the case may
be) shall be treated as a credit allowable under subpart C (and
not allowed under subsection (a)). The preceding sentence shall
not apply to any taxpayer for any taxable year if such taxpayer
is a child to whom subsection (g) of section 1 applies for such
taxable year.
``(7) Coordination with midwestern disaster area benefits.--
In the case of a taxpayer with respect to whom section
702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008
applies for any taxable year, such taxpayer may elect to waive
the application of this subsection to such taxpayer for such
taxable year.''.
(b) Conforming Amendments.--
(1) Section <<NOTE: 26 USC 24.>> 24(b)(3)(B) is amended by
inserting ``25A(i),'' after ``23,''.
(2) Section 25(e)(1)(C)(ii) is amended by inserting
``25A(i),'' after ``24,''.
(3) Section 26(a)(1) is amended by inserting ``25A(i),''
after ``24,''.
(4) Section 25B(g)(2) is amended by inserting ``25A(i),''
after ``23,''.
(5) Section 904(i) is amended by inserting ``25A(i),'' after
``24,''.
(6) Section 1400C(d)(2) is amended by inserting ``25A(i),''
after ``24,''.
(7) Section 6211(b)(4)(A) is amended by inserting ``25A by
reason of subsection (i)(6) thereof,'' after ``24(d),''.
(8) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``25A,'' before ``35''.
(c) Treatment <<NOTE: 26 USC 25A note.>> of Possessions.--
(1) Payments to possessions.--
(A) Mirror <<NOTE: Effective dates.>> code
possession.--The Secretary of the Treasury shall pay to
each possession of the United States with a mirror code
tax system amounts equal to the loss to that possession
by reason of the application of section 25A(i)(6) of the
Internal Revenue Code of 1986 (as added by this section)
with respect to taxable years beginning in 2009 and
2010. Such amounts shall be determined by the Secretary
of the Treasury based on information provided by the
government of the respective possession.
(B) Other <<NOTE: Effective dates.>> possessions.--
The Secretary of the Treasury shall pay to each
possession of the United States which does not have a
mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the
aggregate benefits that would have been provided to
residents of such possession by reason of the
application of section 25A(i)(6) of such Code (as so
added) for taxable years beginning in 2009 and 2010 if a
mirror code tax
[[Page 123 STAT. 315]]
system had been in effect in such possession. The
preceding sentence shall not apply with respect to any
possession of the United States unless such possession
has a plan, which has been approved by the Secretary of
the Treasury, under which such possession will promptly
distribute such payments to the residents of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--Section 25A(i)(6) of such Code (as added by this
section) shall not apply to a bona fide resident of any
possession of the United States.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States, the
income tax system of such possession if the income tax
liability of the residents of such possession under such
system is determined by reference to the income tax laws
of the United States as if such possession were the
United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same
manner as a refund due from the credit allowed under
section 25A of the Internal Revenue Code of 1986 by
reason of subsection (i)(6) of such section (as added by
this section).
(d) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
(e) <<NOTE: 26 USC 24 note.>> Application of EGTRRA Sunset.--The
amendment made by subsection (b)(1) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in the same
manner as the provision of such Act to which such amendment relates.
(f) Treasury Studies Regarding Education Incentives.--
(1) Study regarding coordination with non-tax student
financial assistance.--The Secretary of the Treasury and the
Secretary of Education, or their delegates, shall--
(A) study how to coordinate the credit allowed under
section 25A of the Internal Revenue Code of 1986 with
the Federal Pell Grant program under section 401 of the
Higher Education Act of 1965 to maximize their
effectiveness at promoting college affordability, and
(B) examine ways to expedite the delivery of the tax
credit.
(2) Study regarding inclusion of community service
requirements.--The Secretary of the Treasury and the Secretary
of Education, or their delegates, shall study the feasibility of
requiring including community service as a condition of taking
their tuition and related expenses into account under section
25A of the Internal Revenue Code of 1986.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall report to Congress on the results of
the studies conducted under this paragraph.
[[Page 123 STAT. 316]]
SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED
HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009
AND 2010.
(a) In General.--Section 529(e)(3)(A) <<NOTE: 26 USC 529.>> is
amended by striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii), and by adding at the end the
following:
``(iii) expenses paid or incurred in 2009 or
2010 for the purchase of any computer technology
or equipment (as defined in section
170(e)(6)(F)(i)) or Internet access and related
services, if such technology, equipment, or
services are to be used by the beneficiary and the
beneficiary's family during any of the years the
beneficiary is enrolled at an eligible educational
institution.
Clause (iii) shall not include expenses for computer
software designed for sports, games, or hobbies unless
the software is predominantly educational in nature.''.
(b) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendments made
by this section shall apply to expenses paid or incurred after December
31, 2008.
SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT;
WAIVER OF REQUIREMENT TO REPAY.
(a) Extension.--
(1) In general.--Section 36(h) is amended by striking ``July
1, 2009'' and inserting ``December 1, 2009''.
(2) Conforming amendment.--Section 36(g) is amended by
striking ``July 1, 2009'' and inserting ``December 1, 2009''.
(b) Increase.--
(1) In general.--Section 36(b) is amended by striking
``$7,500'' each place it appears and inserting ``$8,000''.
(2) Conforming amendment.--Section 36(b)(1)(B) is amended by
striking ``$3,750'' and inserting ``$4,000''.
(c) Waiver of Recapture.--
(1) In general.--Paragraph (4) of section 36(f) is amended
by adding at the end the following new subparagraph:
``(D) Waiver of recapture for purchases in 2009.--In
the case <<NOTE: Time period.>> of any credit allowed
with respect to the purchase of a principal residence
after December 31, 2008, and before December 1, 2009--
``(i) paragraph (1) shall not apply, and
``(ii) <<NOTE: Applicability.>> paragraph (2)
shall apply only if the disposition or cessation
described in paragraph (2) with respect to such
residence occurs during the 36-month period
beginning on the date of the purchase of such
residence by the taxpayer.''.
(2) Conforming amendment.--Subsection (g) of section 36 is
amended by striking ``subsection (c)'' and inserting
``subsections (c) and (f)(4)(D)''.
(d) Coordination With First-Time Homebuyer Credit for District of
Columbia.--
(1) In general.--Subsection (e) of section 1400C is amended
by adding at the end the following new paragraph:
``(4) Coordination with national first-time homebuyers
credit.--No credit shall <<NOTE: Time period.>> be allowed
under this section to any taxpayer with respect to the purchase
of a residence after December 31, 2008, and before December 1,
2009, if a credit
[[Page 123 STAT. 317]]
under section 36 is allowable to such taxpayer (or the
taxpayer's spouse) with respect to such purchase.''.
(2) Conforming amendment.--Section 36(d) <<NOTE: 26 USC
36.>> is amended by striking paragraph (1).
(e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.--
Section 36(d), as amended by subsection (c)(2), is amended by striking
paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively.
(f) <<NOTE: 26 USC 36 note.>> Effective Date.--The amendments made
by this section shall apply to residences purchased after December 31,
2008.
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 85 of the Internal Revenue Code of 1986
(relating to unemployment compensation) is amended by adding at the end
the following new subsection:
``(c) Special Rule for 2009.--In the case of any taxable year
beginning in 2009, gross income shall not include so much of the
unemployment compensation received by an individual as does not exceed
$2,400.''.
(b) <<NOTE: 26 USC 85 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2008.
SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON
THE PURCHASE OF CERTAIN MOTOR VEHICLES.
(a) In General.--Subsection (a) of section 164 is amended by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified motor vehicle taxes.''.
(b) Qualified Motor Vehicle Taxes.--Subsection (b) of section 164 is
amended by adding at the end the following new paragraph:
``(6) Qualified motor vehicle taxes.--
``(A) In general.--For purposes of this section, the
term `qualified motor vehicle taxes' means any State or
local sales or excise tax imposed on the purchase of a
qualified motor vehicle.
``(B) Limitation based on vehicle price.--The amount
of any State or local sales or excise tax imposed on the
purchase of a qualified motor vehicle taken into account
under subparagraph (A) shall not exceed the portion of
such tax attributable to so much of the purchase price
as does not exceed $49,500.
``(C) Income limitation.--The amount otherwise taken
into account under subparagraph (A) (after the
application of subparagraph (B)) for any taxable year
shall be reduced (but not below zero) by the amount
which bears the same ratio to the amount which is so
treated as--
``(i) the excess (if any) of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) $125,000 ($250,000 in the
case of a joint return), bears to
``(ii) $10,000.
For purposes of the preceding sentence, the term
`modified adjusted gross income' means the adjusted
gross income of the taxpayer for the taxable year
(determined without regard to sections 911, 931, and
933).
[[Page 123 STAT. 318]]
``(D) Qualified motor vehicle.--For purposes of this
paragraph--
``(i) In general.--The term `qualified motor
vehicle' means--
``(I) a passenger automobile or
light truck which is treated as a motor
vehicle for purposes of title II of the
Clean Air Act, the gross vehicle weight
rating of which is not more than 8,500
pounds, and the original use of which
commences with the taxpayer,
``(II) a motorcycle the gross
vehicle weight rating of which is not
more than 8,500 pounds and the original
use of which commences with the
taxpayer, and
``(III) a motor home the original
use of which commences with the
taxpayer.
``(ii) Other terms.--The terms `motorcycle'
and `motor home' have the meanings given such
terms under section 571.3 of title 49, Code of
Federal Regulations (as in effect on the date of
the enactment of this paragraph).
``(E) Qualified motor vehicle taxes not included in
cost of acquired property.--The last sentence of
subsection (a) shall not apply to any qualified motor
vehicle taxes.
``(F) Coordination with general sales tax.--This
paragraph shall not apply in the case of a taxpayer who
makes an election under paragraph (5) for the taxable
year.
``(G) Termination.--This paragraph shall not apply
to purchases after December 31, 2009.''.
(c) Deduction Allowed to Nonitemizers.--
(1) In general.--Paragraph (1) of section 63(c) <<NOTE: 26
USC 63.>> is amended by striking ``and'' at the end of
subparagraph (C), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(E) the motor vehicle sales tax deduction.''.
(2) Definition.--Section 63(c) is amended by adding at the
end the following new paragraph:
``(9) Motor vehicle sales tax deduction.--For purposes of
paragraph (1), the term `motor vehicle sales tax deduction'
means the amount allowable as a deduction under section
164(a)(6). Such term shall not include any amount taken into
account under section 62(a).''.
(d) Treatment of Deduction Under Alternative Minimum Tax.--The last
sentence of section 56(b)(1)(E) is amended by striking ``section
63(c)(1)(D)'' and inserting ``subparagraphs (D) and (E) of section
63(c)(1)''.
(e) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made
by this section shall apply to purchases on or after the date of the
enactment of this Act in taxable years ending after such date.
[[Page 123 STAT. 319]]
PART II--ALTERNATIVE MINIMUM TAX RELIEF
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE
PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) <<NOTE: 26 USC
26.>> (relating to special rule for taxable years 2000 through 2008) is
amended--
(1) by striking ``or 2008'' and inserting ``2008, or 2009'',
and
(2) by striking ``2008'' in the heading thereof and
inserting ``2009''.
(b) <<NOTE: 26 USC 26 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) (relating to
exemption amount) is amended--
(1) by striking ``($69,950 in the case of taxable years
beginning in 2008)'' in subparagraph (A) and inserting
``($70,950 in the case of taxable years beginning in 2009)'',
and
(2) by striking ``($46,200 in the case of taxable years
beginning in 2008)'' in subparagraph (B) and inserting
``($46,700 in the case of taxable years beginning in 2009)''.
(b) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
Subtitle B--Energy Incentives
PART I--RENEWABLE ENERGY INCENTIVES
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
(a) In General.--Subsection (d) of section 45 is amended--
(1) by striking ``2010'' in paragraph (1) and inserting
``2013'',
(2) by striking ``2011'' each place it appears in paragraphs
(2), (3), (4), (6), (7) and (9) and inserting ``2014'', and
(3) by striking ``2012'' in paragraph (11)(B) and inserting
``2014''.
(b) Technical Amendment.--Paragraph (5) of section 45(d) is amended
by striking ``and before'' and all that follows and inserting `` and
before October 3, 2008.''.
(c) <<NOTE: 26 USC 45 note.>> Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
apply to property placed in service after the date of the
enactment of this Act.
(2) Technical amendment.--The amendment made by subsection
(b) shall take effect as if included in section 102 of the
Energy Improvement and Extension Act of 2008.
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.
(a) In General.--Subsection (a) of section 48 is amended by adding
at the end the following new paragraph:
``(5) Election to treat qualified facilities as energy
property.--
``(A) In general.--In the case of any qualified
property which is part of a qualified investment credit
facility--
[[Page 123 STAT. 320]]
``(i) such property shall be treated as energy
property for purposes of this section, and
``(ii) the energy percentage with respect to
such property shall be 30 percent.
``(B) Denial of production credit.--No credit shall
be allowed under section 45 for any taxable year with
respect to any qualified investment credit facility.
``(C) Qualified investment credit facility.--For
purposes of this paragraph, the term `qualified
investment credit facility' means any of the following
facilities if no credit has been allowed under section
45 with respect to such facility and the taxpayer makes
an irrevocable election to have this paragraph apply to
such facility:
``(i) Wind facilities.--Any qualified facility
(within the meaning of section 45) described in
paragraph (1) of section 45(d) if such facility is
placed in service in 2009, 2010, 2011, or 2012.
``(ii) Other facilities.--Any qualified
facility (within the meaning of section 45)
described in paragraph (2), (3), (4), (6), (7),
(9), or (11) of section 45(d) if such facility is
placed in service in 2009, 2010, 2011, 2012, or
2013.
``(D) Qualified property.--For purposes of this
paragraph, the term `qualified property' means
property--
``(i) which is--
``(I) tangible personal property, or
``(II) other tangible property (not
including a building or its structural
components), but only if such property
is used as an integral part of the
qualified investment credit facility,
and
``(ii) with respect to which depreciation (or
amortization in lieu of depreciation) is
allowable.''.
(b) <<NOTE: 26 USC 48 note.>> Effective Date.--The amendments made
by this section shall apply to facilities placed in service after
December 31, 2008.
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY
PROPERTY.
(a) Repeal of Limitation on Credit for Qualified Small Wind Energy
Property.--Paragraph (4) of section 48(c) <<NOTE: 26 USC 48.>> is
amended by striking subparagraph (B) and by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and (C).
(b) Repeal of Limitation on Property Financed by Subsidized Energy
Financing.--
(1) In general.--Section 48(a)(4) is amended by adding at
the end the following new subparagraph:
``(D) Termination.--This paragraph shall not apply
to periods after December 31, 2008, under rules similar
to the rules of section 48(m) (as in effect on the day
before the date of the enactment of the Revenue
Reconciliation Act of 1990).''.
(2) Conforming amendments.--
(A) Section 25C(e)(1) is amended by striking ``(8),
and (9)'' and inserting ``and (8)''.
(B) Section 25D(e) is amended by striking paragraph
(9).
[[Page 123 STAT. 321]]
(C) Section 48A(b)(2) <<NOTE: 26 USC 48A.>> is
amended by inserting ``(without regard to subparagraph
(D) thereof)'' after ``section 48(a)(4)''.
(D) Section 48B(b)(2) is amended by inserting
``(without regard to subparagraph (D) thereof)'' after
``section 48(a)(4)''.
(c) <<NOTE: Applicability. 26 USC 25C.>> Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to periods after
December 31, 2008, under rules similar to the rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
(2) Conforming amendments.--The amendments made by
subparagraphs (A) and (B) of subsection (b)(2) shall apply to
taxable years beginning after December 31, 2008.
SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.
Section 48 is amended by adding at the end the following new
subsection:
``(d) Coordination With Department of Treasury Grants.--In the case
of any property with respect to which the Secretary makes a grant under
section 1603 of the American Recovery and Reinvestment Tax Act of 2009--
``(1) Denial of production and investment credits.--No
credit shall be determined under this section or section 45 with
respect to such property for the taxable year in which such
grant is made or any subsequent taxable year.
``(2) Recapture of credits for progress expenditures made
before grant.--If a credit was determined under this section
with respect to such property for any taxable year ending before
such grant is made--
``(A) the tax imposed under subtitle A on the
taxpayer for the taxable year in which such grant is
made shall be increased by so much of such credit as was
allowed under section 38,
``(B) the general business carryforwards under
section 39 shall be adjusted so as to recapture the
portion of such credit which was not so allowed, and
``(C) the amount of such grant shall be determined
without regard to any reduction in the basis of such
property by reason of such credit.
``(3) Treatment of grants.--Any such grant shall--
``(A) not be includible in the gross income of the
taxpayer, but
``(B) shall be taken into account in determining the
basis of the property to which such grant relates,
except that the basis of such property shall be reduced
under section 50(c) in the same manner as a credit
allowed under subsection (a).''.
[[Page 123 STAT. 322]]
PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND
QUALIFIED ENERGY CONSERVATION BONDS
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE
ENERGY BONDS.
Subsection (c) of section 54C <<NOTE: 26 USC 54C.>> is amended by
adding at the end the following new paragraph:
``(4) Additional limitation.--The national new clean
renewable energy bond limitation shall be increased by
$1,600,000,000. Such increase shall be allocated by the
Secretary consistent with the rules of paragraphs (2) and
(3).''.
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY
CONSERVATION BONDS.
(a) In General.--Section 54D(d) is amended by striking
``$800,000,000'' and inserting ``$3,200,000,000''.
(b) Clarification With Respect to Green Community Programs.--
(1) In general.--Clause (ii) of section 54D(f)(1)(A) is
amended by inserting ``(including the use of loans, grants, or
other repayment mechanisms to implement such programs)'' after
``green community programs''.
(2) Special rules for bonds for implementing green community
programs.--Subsection (e) of section 54D is amended by adding at
the end the following new paragraph:
``(4) Special rules for bonds to implement green community
programs.--In the case of any bond issued for the purpose of
providing loans, grants, or other repayment mechanisms for
capital expenditures to implement green community programs, such
bond shall not be treated as a private activity bond for
purposes of paragraph (3).''.
PART III--ENERGY CONSERVATION INCENTIVES
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY
PROPERTY.
(a) In General.--Section 25C is amended by striking subsections (a)
and (b) and inserting the following new subsections:
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter for
the taxable year an amount equal to 30 percent of the sum of--
``(1) the amount paid or incurred by the taxpayer during
such taxable year for qualified energy efficiency improvements,
and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.
``(b) Limitation.--The aggregate amount of the credits allowed under
this section for taxable years beginning in 2009 and 2010 with respect
to any taxpayer shall not exceed $1,500.''.
(b) Modifications of Standards for Energy-Efficient Building
Property.--
[[Page 123 STAT. 323]]
(1) Electric heat pumps.--Subparagraph (B) of section
25C(d)(3) <<NOTE: 26 USC 25C.>> is amended to read as follows:
``(B) an electric heat pump which achieves the
highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2009.''.
(2) Central air conditioners.--Subparagraph (C) of section
25C(d)(3) is amended by striking ``2006'' and inserting
``2009''.
(3) Water heaters.--Subparagraph (D) of section 25C(d)(3) is
amended to read as follows:
``(D) a natural gas, propane, or oil water heater
which has either an energy factor of at least 0.82 or a
thermal efficiency of at least 90 percent.''.
(4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is
amended by inserting ``, as measured using a lower heating
value'' after ``75 percent''.
(c) Modifications of Standards for Oil Furnaces and Hot Water
Boilers.--
(1) In general.--Paragraph (4) of section 25C(d) is amended
to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and
hot water boilers.--
``(A) Qualified natural gas furnace.--The term
`qualified natural gas furnace' means any natural gas
furnace which achieves an annual fuel utilization
efficiency rate of not less than 95.
``(B) Qualified natural gas hot water boiler.--The
term `qualified natural gas hot water boiler' means any
natural gas hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term
`qualified propane furnace' means any propane furnace
which achieves an annual fuel utilization efficiency
rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane
hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified
oil furnace' means any oil furnace which achieves an
annual fuel utilization efficiency rate of not less than
90.
``(F) Qualified oil hot water boiler.--The term
`qualified oil hot water boiler' means any oil hot water
boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.''.
(2) Conforming amendment.--Clause (ii) of section
25C(d)(2)(A) is amended to read as follows:
``(ii) any qualified natural gas furnace,
qualified propane furnace, qualified oil furnace,
qualified natural gas hot water boiler, qualified
propane hot water boiler, or qualified oil hot
water boiler, or''.
(d) Modifications of Standards for Qualified Energy Efficiency
Improvements.--
(1) Qualifications for exterior windows, doors, and
skylights.--Subsection (c) of section 25C is amended by adding
at the end the following new paragraph:
[[Page 123 STAT. 324]]
``(4) Qualifications for exterior windows, doors, and
skylights.--Such term shall not include any component described
in subparagraph (B) or (C) of paragraph (2) unless such
component is equal to or below a U factor of 0.30 and SHGC of
0.30.''.
(2) Additional qualification for insulation.--Subparagraph
(A) of section 25C(c)(2) <<NOTE: 26 USC 25C.>> is amended by
inserting ``and meets the prescriptive criteria for such
material or system established by the 2009 International Energy
Conservation Code, as such Code (including supplements) is in
effect on the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009'' after ``such dwelling unit''.
(e) Extension.--Section 25C(g)(2) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(f) <<NOTE: Applicability. 26 USC 25C note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2008.
(2) Efficiency standards.--The amendments made by paragraphs
(1), (2), and (3) of subsection (b) and subsections (c) and (d)
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.
(a) Removal of Credit Limitation for Property Placed in Service.--
(1) In general.--Paragraph (1) of section 25D(b) is amended
to read as follows:
``(1) Maximum credit for fuel cells.--In the case of any
qualified fuel cell property expenditure, the credit allowed
under subsection (a) (determined without regard to subsection
(c)) for any taxable year shall not exceed $500 with respect to
each half kilowatt of capacity of the qualified fuel cell
property (as defined in section 48(c)(1)) to which such
expenditure relates.''.
(2) Conforming amendment.--Paragraph (4) of section 25D(e)
is amended--
(A) by striking all that precedes subparagraph (B)
and inserting the following:
``(4) <<NOTE: Regulations. Applicability.>> Fuel cell
expenditure limitations in case of joint occupancy.--In the case
of any dwelling unit with respect to which qualified fuel cell
property expenditures are made and which is jointly occupied and
used during any calendar year as a residence by two or more
individuals, the following rules shall apply:
``(A) Maximum expenditures for fuel cells.--The
maximum amount of such expenditures which may be taken
into account under subsection (a) by all such
individuals with respect to such dwelling unit during
such calendar year shall be $1,667 in the case of each
half kilowatt of capacity of qualified fuel cell
property (as defined in section 48(c)(1)) with respect
to which such expenditures relate.'', and
(B) by striking subparagraph (C).
(b) <<NOTE: 26 USC 25D note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
[[Page 123 STAT. 325]]
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.
(a) In General.--Section 30C(e) <<NOTE: 26 USC 30C.>> is amended by
adding at the end the following new paragraph:
``(6) Special rule for property placed in service during
2009 and 2010.--In the case of property placed in service in
taxable years beginning after December 31, 2008, and before
January 1, 2011--
``(A) <<NOTE: Applicability.>> in the case of any
such property which does not relate to hydrogen--
``(i) subsection (a) shall be applied by
substituting `50 percent' for `30 percent',
``(ii) subsection (b)(1) shall be applied by
substituting `$50,000' for `$30,000', and
``(iii) subsection (b)(2) shall be applied by
substituting `$2,000' for `$1,000', and
``(B) in the case of any such property which relates
to hydrogen, subsection (b)(1) shall be applied by
substituting `$200,000' for `$30,000'.''.
(b) <<NOTE: 26 USC 30C note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2008.
PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION
SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED
AS A TERTIARY INJECTANT.
(a) In General.--Section 45Q(a)(2) is amended by striking ``and'' at
the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the end the
following new subparagraph:
``(C) disposed of by the taxpayer in secure
geological storage.''.
(b) Conforming Amendments.--
(1) Section 45Q(d)(2) is amended--
(A) by striking ``subsection (a)(1)(B)'' and
inserting ``paragraph (1)(B) or (2)(C) of subsection
(a)'',
(B) by striking ``and unminable coal seems'' and
inserting ``, oil and gas reservoirs, and unminable coal
seams'', and
(C) by inserting ``the Secretary of Energy, and the
Secretary of the Interior,'' after ``Environmental
Protection Agency''.
(2) Section 45Q(a)(1)(B) is amended by inserting ``and not
used by the taxpayer as described in paragraph (2)(B)'' after
``storage''.
(3) Section 45Q(e) is amended by striking ``captured and
disposed of or used as a tertiary injectant'' and inserting
``taken into account in accordance with subsection (a)''.
(c) <<NOTE: 26 USC 45Q note.>> Effective Date.--The amendments made
by this section shall apply to carbon dioxide captured after the date of
the enactment of this Act.
[[Page 123 STAT. 326]]
PART V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES
SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
(a) In General.--Section 30D <<NOTE: 26 USC 30D.>> is amended to
read as follows:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each new qualified plug-in electric drive motor vehicle
placed in service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in electric
drive motor vehicle is the sum of the amounts determined under
paragraphs (2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $2,500.
``(3) Battery capacity.--In the case of a vehicle which
draws propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $417, plus $417 for each kilowatt hour of capacity
in excess of 5 kilowatt hours. The amount determined under this
paragraph shall not exceed $5,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(ii) the sum of the credits allowable under
subpart A (other than this section and sections 23
and 25D) and section 27 for the taxable year.
``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For
purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle--
[[Page 123 STAT. 327]]
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the
taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which is treated as a motor vehicle for
purposes of title II of the Clean Air Act,
``(E) which has a gross vehicle weight rating of
less than 14,000 pounds, and
``(F) which is propelled to a significant extent by
an electric motor which draws electricity from a battery
which--
``(i) has a capacity of not less than 4
kilowatt hours, and
``(ii) is capable of being recharged from an
external source of electricity.
``(2) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4 wheels.
``(3) Manufacturer.--The term `manufacturer' has the meaning
given such term in regulations prescribed by the Administrator
of the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent state
of charge.
``(e) Limitation on Number of New Qualified Plug-in Electric Drive
Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor vehicle sold during the phaseout period,
only the applicable percentage of the credit otherwise allowable
under subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection, the
phaseout period is the period beginning with the second calendar
quarter following the calendar quarter which includes the first
date on which the number of new qualified plug-in electric drive
motor vehicles manufactured by the manufacturer of the vehicle
referred to in paragraph (1) sold for use in the United States
after December 31, 2009, is at least 200,000.
``(3) Applicable percentage.--For purposes of paragraph (1),
the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters
of the phaseout period,
``(B) 25 percent for the 3d and 4th calendar
quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter
thereafter.
``(4) <<NOTE: Regulations. Applicability.>> Controlled
groups.--Rules similar to the rules of section 30B(f)(4) shall
apply for purposes of this subsection.
``(f) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
[[Page 123 STAT. 328]]
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a new qualified
plug-in electric drive motor vehicle shall be reduced by the
amount of credit allowed under subsection (a) for such vehicle.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person
who sold such vehicle to the person or entity using such vehicle
shall be treated as the taxpayer that placed such vehicle in
service, but only if such person clearly discloses to such
person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle
(determined without regard to subsection (c)).
``(4) Property used outside united states not qualified.--No
credit shall be allowable under subsection (a) with respect to
any property referred to in section 50(b)(1).
``(5) <<NOTE: Regulations.>> Recapture.--The Secretary
shall, by regulations, provide for recapturing the benefit of
any credit allowable under subsection (a) with respect to any
property which ceases to be property eligible for such credit.
``(6) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(7) Interaction with air quality and motor vehicle safety
standards.--A motor vehicle shall not be considered eligible for
a credit under this section unless such vehicle is in compliance
with--
``(A) the applicable provisions of the Clean Air Act
for the applicable make and model year of the vehicle
(or applicable air quality provisions of State law in
the case of a State which has adopted such provision
under a waiver under section 209(b) of the Clean Air
Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.''.
(b) Conforming Amendments.--
(1) Section 30B(d)(3)(D) <<NOTE: 26 USC 30B.>> is amended
by striking ``subsection (d) thereof'' and inserting
``subsection (c) thereof''.
(2) Section 38(b)(35) is amended by striking ``30D(d)(1)''
and inserting ``30D(c)(1)''.
(3) Section 1016(a)(25) is amended by striking ``section
30D(e)(4)'' and inserting ``section 30D(f)(1)''.
(4) Section 6501(m) is amended by striking ``section
30D(e)(9)'' and inserting ``section 30D(e)(4)''.
(c) <<NOTE: 26 USC 30B note.>> Effective Date.--The amendments made
by this section shall apply to vehicles acquired after December 31,
2009.
SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.
(a) In General.--Section 30 is amended to read as follows:
``SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 10 percent of the cost of any qualified plug-in electric
vehicle placed in service by the taxpayer during the taxable year.
[[Page 123 STAT. 329]]
``(b) Per Vehicle Dollar Limitation.--The amount of the credit
allowed under subsection (a) with respect to any vehicle shall not
exceed $2,500.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(ii) the sum of the credits allowable under
subpart A (other than this section and sections
23, 25D, and 30D) and section 27 for the taxable
year.
``(d) Qualified Plug-in Electric Vehicle.--For purposes of this
section--
``(1) In general.--The term `qualified plug-in electric
vehicle' means a specified vehicle--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the
taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which is manufactured primarily for use on
public streets, roads, and highways,
``(E) which has a gross vehicle weight rating of
less than 14,000 pounds, and
``(F) which is propelled to a significant extent by
an electric motor which draws electricity from a battery
which--
``(i) has a capacity of not less than 4
kilowatt hours (2.5 kilowatt hours in the case of
a vehicle with 2 or 3 wheels), and
``(ii) is capable of being recharged from an
external source of electricity.
``(2) Specified vehicle.--The term `specified vehicle' means
any vehicle which--
``(A) is a low speed vehicle within the meaning of
section 571.3 of title 49, Code of Federal Regulations
(as in effect on the date of the enactment of the
American Recovery and Reinvestment Tax Act of 2009), or
``(B) has 2 or 3 wheels.
[[Page 123 STAT. 330]]
``(3) Manufacturer.--The term `manufacturer' has the meaning
given such term in regulations prescribed by the Administrator
of the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent state
of charge.
``(e) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a new qualified
plug-in electric drive motor vehicle shall be reduced by the
amount of credit allowable under subsection (a) for such
vehicle.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person
who sold such vehicle to the person or entity using such vehicle
shall be treated as the taxpayer that placed such vehicle in
service, but only if such person clearly discloses to such
person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle
(determined without regard to subsection (c)).
``(4) Property used outside united states not qualified.--No
credit shall be allowable under subsection (a) with respect to
any property referred to in section 50(b)(1).
``(5) <<NOTE: Regulations.>> Recapture.--The Secretary
shall, by regulations, provide for recapturing the benefit of
any credit allowable under subsection (a) with respect to any
property which ceases to be property eligible for such credit.
``(6) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(f) Termination.--This section shall not apply to any vehicle
acquired after December 31, 2011.''.
(b) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B) <<NOTE: 26 USC 24.>> is amended
by inserting ``30,'' after ``25D,''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,''
after ``25D,''.
(C) Section 25B(g)(2) is amended by inserting ``30,'' after
``25D,''.
(D) Section 26(a)(1) is amended by inserting ``30,'' after
``25D,''.
(E) Section 904(i) is amended by striking ``and 25B'' and
inserting ``25B, 30, and 30D''.
(F) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30''.
(2) Paragraph (1) of section 30B(h) is amended to read as
follows:
``(1) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
[[Page 123 STAT. 331]]
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.''.
(3) Section 30C(d)(2)(A) <<NOTE: 26 USC 30C.>> is amended
by striking ``, 30,''.
(4)(A) Section 53(d)(1)(B) is amended by striking clause
(iii) and redesignating clause (iv) as clause (iii).
(B) Subclause (II) of section 53(d)(1)(B)(iii), as so
redesignated, is amended by striking ``increased in the manner
provided in clause (iii)''.
(5) Section 55(c)(3) is amended by striking ``30(b)(3),''.
(6) Section 1016(a)(25) is amended by striking ``section
30(d)(1)'' and inserting ``section 30(e)(1)''.
(7) Section 6501(m) is amended by striking ``section
30(d)(4)'' and inserting ``section 30(e)(6)''.
(8) The item in the table of sections for subpart B of part
IV of subchapter A of chapter 1 is amended to read as follows:
``Sec. 30. Certain plug-in electric vehicles.''.
(c) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
by this section shall apply to vehicles acquired after the date of the
enactment of this Act.
(d) Transitional Rule.--In the <<NOTE: Time period. 26 USC 30
note.>> case of a vehicle acquired after the date of the enactment of
this Act and before January 1, 2010, no credit shall be allowed under
section 30 of the Internal Revenue Code of 1986, as added by this
section, if credit is allowable under section 30D of such Code with
respect to such vehicle.
(e) <<NOTE: 26 USC 24 note.>> Application of EGTRRA Sunset.--The
amendment made by subsection (b)(1)(A) shall be subject to title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001 in the
same manner as the provision of such Act to which such amendment
relates.
SEC. 1143. CONVERSION KITS.
(a) In General.--Section 30B (relating to alternative motor vehicle
credit) is amended by redesignating subsections (i) and (j) as
subsections (j) and (k), respectively, and by inserting after subsection
(h) the following new subsection:
``(i) Plug-in Conversion Credit.--
``(1) In general.--For purposes of subsection (a), the plug-
in conversion credit determined under this subsection with
respect to any motor vehicle which is converted to a qualified
plug-in electric drive motor vehicle is 10 percent of so much of
the cost of the converting such vehicle as does not exceed
$40,000.
``(2) Qualified plug-in electric drive motor vehicle.--For
purposes of this subsection, the term `qualified plug-in
electric drive motor vehicle' means any new qualified plug-in
electric drive motor vehicle (as defined in section 30D,
determined without regard to whether such vehicle is made by a
manufacturer or whether the original use of such vehicle
commences with the taxpayer).
``(3) Credit allowed in addition to other credits.--The
credit allowed under this subsection shall be allowed with
respect to a motor vehicle notwithstanding whether a credit has
been allowed with respect to such motor vehicle under this
section (other than this subsection) in any preceding taxable
year.
[[Page 123 STAT. 332]]
``(4) Termination.--This subsection shall not apply to
conversions made after December 31, 2011.''.
(b) Credit Treated as Part of Alternative Motor Vehicle Credit.--
Section 30B(a) <<NOTE: 26 USC 30B.>> is amended by striking ``and'' at
the end of paragraph (3), by striking the period at the end of paragraph
(4) and inserting ``, and'', and by adding at the end the following new
paragraph:
``(5) the plug-in conversion credit determined under
subsection (i).''.
(c) No Recapture for Vehicles Converted to Qualified Plug-in
Electric Drive Motor Vehicles.--Paragraph (8) of section 30B(h) is
amended by adding at the end the following: ``, except that no benefit
shall be recaptured if such property ceases to be eligible for such
credit by reason of conversion to a qualified plug-in electric drive
motor vehicle.''.
(d) <<NOTE: 26 USC 30B note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after the date
of the enactment of this Act.
SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL
CREDIT ALLOWED AGAINST AMT.
(a) In General.--Paragraph (2) of section 30B(g) is amended to read
as follows:
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(ii) the sum of the credits allowable under
subpart A (other than this section and sections
23, 25D, 30, and 30D) and section 27 for the
taxable year.''.
(b) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by inserting ``30B,'' after ``30,''.
(B) Section 25(e)(1)(C)(ii), as amended by this Act, is
amended by inserting ``30B,'' after ``30,''.
(C) Section 25B(g)(2), as amended by this Act, is amended by
inserting ``30B,'' after ``30,''.
(D) Section 26(a)(1), as amended by this Act, is amended by
inserting ``30B,'' after ``30,''.
(E) Section 904(i), as amended by this Act, is amended by
inserting ``30B,'' after ``30''.
(F) Section 1400C(d)(2), as amended by this Act, is amended
by striking ``and 30'' and inserting ``30, and 30B''.
(2) Section 30C(d)(2)(A), as amended by this Act, is amended
by striking ``sections 27 and 30B'' and inserting ``section
27''.
(3) Section 55(c)(3) is amended by striking ``30B(g)(2),''.
[[Page 123 STAT. 333]]
(c) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
(d) <<NOTE: 26 USC 24 note.>> Application of EGTRRA Sunset.--The
amendment made by subsection (b)(1)(A) shall be subject to title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001 in the
same manner as the provision of such Act to which such amendment
relates.
PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS
SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND
TRANSIT PASSES.
(a) In General.--Paragraph (2) of section 132(f) <<NOTE: 26 USC
132.>> is amended by adding at the end the following flush sentence:
``In <<NOTE: Applicability.>> the case of any month beginning
on or after the date of the enactment of this sentence and
before January 1, 2011, subparagraph (A) shall be applied as if
the dollar amount therein were the same as the dollar amount in
effect for such month under subparagraph (B).''.
(b) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendment made
by this section shall apply to months beginning on or after the date of
the enactment of this section.
Subtitle C--Tax Incentives for Business
PART I--TEMPORARY INVESTMENT INCENTIVES
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.
(a) Extension of Special Allowance.--
(1) In general.--Paragraph (2) of section 168(k) is
amended--
(A) by striking ``January 1, 2010'' and inserting
``January 1, 2011'', and
(B) by striking ``January 1, 2009'' each place it
appears and inserting ``January 1, 2010''.
(2) Conforming amendments.--
(A) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2010''.
(B) The heading for clause (ii) of section
168(k)(2)(B) is amended by striking ``pre-january 1,
2009'' and inserting ``pre-january 1, 2010''.
(C) Subparagraph (B) of section 168(l)(5) is amended
by striking ``January 1, 2009'' and inserting ``January
1, 2010''.
(D) Subparagraph (C) of section 168(n)(2) is amended
by striking ``January 1, 2009'' and inserting ``January
1, 2010''.
(E) Subparagraph (B) of section 1400N(d)(3) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2010''.
(3) Technical amendments.--
(A) Subparagraph (D) of section 168(k)(4) is
amended--
[[Page 123 STAT. 334]]
(i) by striking ``and'' at the end of clause
(i),
(ii) by redesignating clause (ii) as clause
(iii), and
(iii) by inserting after clause (i) the
following new clause:
``(ii) `April 1, 2008' shall be substituted
for `January 1, 2008' in subparagraph (A)(iii)(I)
thereof, and''.
(B) Subparagraph (A) of section
6211(b)(4) <<NOTE: 26 USC 6211.>> is amended by
inserting ``168(k)(4),'' after ``53(e),''.
(b) Extension of Election to Accelerate the Amt and Research Credits
in Lieu of Bonus Depreciation.--
(1) In general.--Section 168(k)(4) (relating to election to
accelerate the AMT and research credits in lieu of bonus
depreciation) is amended--
(A) by striking ``2009'' and inserting ``2010''in
subparagraph (D)(iii) (as redesignated by subsection
(a)(3)), and
(B) by adding at the end the following new
subparagraph:
``(H) Special rules for extension property.--
``(i) Taxpayers previously electing
acceleration.--In the case of a taxpayer who made
the election under subparagraph (A) for its first
taxable year ending after March 31, 2008--
``(I) the taxpayer may elect not to
have this paragraph apply to extension
property, but
``(II) if the taxpayer does not make
the election under subclause (I), in
applying this paragraph to the taxpayer
a separate bonus depreciation amount,
maximum amount, and maximum increase
amount shall be computed and applied to
eligible qualified property which is
extension property and to eligible
qualified property which is not
extension property.
``(ii) Taxpayers not previously electing
acceleration.--In the case of a taxpayer who did
not make the election under subparagraph (A) for
its first taxable year ending after March 31,
2008--
``(I) the taxpayer may elect to have
this paragraph apply to its first
taxable year ending after December 31,
2008, and each subsequent taxable year,
and
``(II) if the taxpayer makes the
election under subclause (I), this
paragraph shall only apply to eligible
qualified property which is extension
property.
``(iii) Extension property.--For purposes of
this subparagraph, the term `extension property'
means property which is eligible qualified
property solely by reason of the extension of the
application of the special allowance under
paragraph (1) pursuant to the amendments made by
section 1201(a) of the American Recovery and
Reinvestment Tax Act of 2009 (and the application
of such extension to this paragraph pursuant to
the amendment made by section 1201(b)(1) of such
Act).''.
(2) Technical amendment.--Section 6211(b)(4)(A) is amended
by inserting ``168(k)(4),'' after ``53(e),''.
(c) <<NOTE: Applicability. 26 USC 168 note.>> Effective Dates.--
[[Page 123 STAT. 335]]
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2008, in taxable years ending
after such date.
(2) Technical amendments.--The amendments made by
subsections (a)(3) and (b)(2) shall apply to taxable years
ending after March 31, 2008.
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--Paragraph (7) of section 179(b) <<NOTE: 26 USC
179.>> 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) <<NOTE: 26 USC 179 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2008.
PART II--SMALL BUSINESS PROVISIONS
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.
(a) In General.--Subparagraph (H) of section 172(b)(1) is amended to
read as follows:
``(H) Carryback for 2008 net operating losses of
small businesses.--
``(i) <<NOTE: Applicability.>> In general.--
If an eligible small business elects the
application of this subparagraph with respect to
an applicable 2008 net operating loss--
``(I) subparagraph (A)(i) shall be
applied by substituting any whole number
elected by the taxpayer which is more
than 2 and less than 6 for `2',
``(II) subparagraph (E)(ii) shall be
applied by substituting the whole number
which is one less than the whole number
substituted under subclause (I) for `2',
and
``(III) subparagraph (F) shall not
apply.
``(ii) Applicable 2008 net operating loss.--
For purposes of this subparagraph, the term
`applicable 2008 net operating loss' means--
``(I) the taxpayer's net operating
loss for any taxable year ending in
2008, or
``(II) if the taxpayer elects to
have this subclause apply in lieu of
subclause (I), the taxpayer's net
operating loss for any taxable year
beginning in 2008.
``(iii) Election.--Any election under this
subparagraph shall be made in such manner as may
be prescribed by the Secretary, and shall be made
by the due date (including extension of time) for
filing the taxpayer's return for the taxable year
of the net operating loss. Any such election, once
made, shall be irrevocable. Any election under
this subparagraph may be made only with respect to
1 taxable year.
``(iv) <<NOTE: Applicability.>> Eligible
small business.--For purposes of this
subparagraph, the term `eligible small business'
has the meaning given such term by subparagraph
[[Page 123 STAT. 336]]
(F)(iii), except that in applying such
subparagraph, section 448(c) shall be applied by
substituting `$15,000,000' for `$5,000,000' each
place it appears.''.
(b) Conforming Amendment.--Section 172 <<NOTE: 26 USC 172.>> is
amended by striking subsection (k) and by redesignating subsection (l)
as subsection (k).
(c) <<NOTE: 26 USC 172 note.>> Anti-Abuse Rules.--The Secretary of
Treasury or the Secretary's designee shall prescribe such rules as are
necessary to prevent the abuse of the purposes of the amendments made by
this section, including anti-stuffing rules, anti-churning rules
(including rules relating to sale-leasebacks), and rules similar to the
rules under section 1091 of the Internal Revenue Code of 1986 relating
to losses from wash sales.
(d) <<NOTE: 26 USC 172 note.>> Effective Date.--
(1) <<NOTE: Applicability.>> In general.--Except as
otherwise provided in this subsection, the amendments made by
this section shall apply to net operating losses arising in
taxable years ending after December 31, 2007.
(2) Transitional rule.--In the case of a net operating loss
for a taxable year ending before the date of the enactment of
this Act--
(A) any election made under section 172(b)(3) of the
Internal Revenue Code of 1986 with respect to such loss
may (notwithstanding such section) be revoked before the
applicable date,
(B) any election made under section 172(b)(1)(H) of
such Code with respect to such loss shall
(notwithstanding such section) be treated as timely made
if made before the applicable date, and
(C) any application under section 6411(a) of such
Code with respect to such loss shall be treated as
timely filed if filed before the applicable date.
For <<NOTE: Definition.>> purposes of this paragraph, the term
``applicable date'' means the date which is 60 days after the
date of the enactment of this Act.
SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN
SMALL BUSINESSES.
Paragraph (1) of section 6654(d) is amended by adding at the end the
following new subparagraph:
``(D) Special rule for 2009.--
``(i) <<NOTE: Applicability.>> In general.--
Notwithstanding subparagraph (C), in the case of
any taxable year beginning in 2009, clause (ii) of
subparagraph (B) shall be applied to any qualified
individual by substituting `90 percent' for `100
percent'.
``(ii) Qualified individual.--For purposes of
this subparagraph, the term `qualified individual'
means any individual if--
``(I) the adjusted gross income
shown on the return of such individual
for the preceding taxable year is less
than $500,000, and
``(II) <<NOTE: Certification.>>
such individual certifies that more than
50 percent of the gross income shown on
the return of such individual for the
preceding taxable year was income from a
small business.
[[Page 123 STAT. 337]]
A certification under subclause (II) shall be in
such form and manner and filed at such time as the
Secretary may by regulations prescribe.
``(iii) Income from a small business.--For
purposes of clause (ii), income from a small
business means, with respect to any individual,
income from a trade or business the average number
of employees of which was less than 500 employees
for the calendar year ending with or within the
preceding taxable year of the individual.
``(iv) Separate returns.--In the case of a
married individual (within the meaning of section
7703) who files a separate return for the taxable
year for which the amount of the installment is
being determined, clause (ii)(I) shall be applied
by substituting `$250,000' for `$500,000'.
``(v) Estates and trusts.--In the case of an
estate or trust, adjusted gross income shall be
determined as provided in section 67(e).''.
PART III--INCENTIVES FOR NEW JOBS
SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED
YOUTH.
(a) In General.--Subsection (d) of section 51 <<NOTE: 26 USC 51.>>
is amended by adding at the end the following new paragraph:
``(14) Credit allowed for unemployed veterans and
disconnected youth hired in 2009 or 2010.--
``(A) In general.--Any unemployed veteran or
disconnected youth who begins work for the employer
during 2009 or 2010 shall be treated as a member of a
targeted group for purposes of this subpart.
``(B) Definitions.--For purposes of this paragraph--
``(i) Unemployed veteran.--The term
`unemployed veteran' means any veteran (as defined
in paragraph (3)(B), determined without regard to
clause (ii) thereof) who is certified by the
designated local agency as--
``(I) having been discharged or
released from active duty in the Armed
Forces at any time during the 5-year
period ending on the hiring date, and
``(II) being in receipt of
unemployment compensation under State or
Federal law for not less than 4 weeks
during the 1-year period ending on the
hiring date.
``(ii) Disconnected youth.--The term
`disconnected youth' means any individual who is
certified by the designated local agency--
``(I) as having attained age 16 but
not age 25 on the hiring date,
``(II) as not regularly attending
any secondary, technical, or post-
secondary school during the 6-month
period preceding the hiring date,
``(III) as not regularly employed
during such 6-month period, and
``(IV) as not readily employable by
reason of lacking a sufficient number of
basic skills.''.
[[Page 123 STAT. 338]]
(b) Effective Date.--The amendments made by this section shall apply
to individuals who begin work for the employer after December 31, 2008.
PART IV--RULES RELATING TO DEBT INSTRUMENTS
SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM
BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A
DEBT INSTRUMENT.
(a) In General.--Section 108 <<NOTE: 26 USC 108.>> (relating to
income from discharge of indebtedness) is amended by adding at the end
the following new subsection:
``(i) Deferral and Ratable Inclusion of Income Arising From Business
Indebtedness Discharged by the Reacquisition of a Debt Instrument.--
``(1) In general.--At the <<NOTE: Time periods.>> election
of the taxpayer, income from the discharge of indebtedness in
connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument shall
be includible in gross income ratably over the 5-taxable-year
period beginning with--
``(A) in the case of a reacquisition occurring in
2009, the fifth taxable year following the taxable year
in which the reacquisition occurs, and
``(B) in the case of a reacquisition occurring in
2010, the fourth taxable year following the taxable year
in which the reacquisition occurs.
``(2) Deferral of deduction for original issue discount in
debt for debt exchanges.--
``(A) In general.--If, as part of a reacquisition to
which paragraph (1) applies, any debt instrument is
issued for the applicable debt instrument being
reacquired (or is treated as so issued under subsection
(e)(4) and the regulations thereunder) and there is any
original issue discount determined under subpart A of
part V of subchapter P of this chapter with respect to
the debt instrument so issued--
``(i) except as provided in clause (ii), no
deduction otherwise allowable under this chapter
shall be allowed to the issuer of such debt
instrument with respect to the portion of such
original issue discount which--
``(I) accrues before the 1st taxable
year in the 5-taxable-year period in
which income from the discharge of
indebtedness attributable to the
reacquisition of the debt instrument is
includible under paragraph (1), and
``(II) does not exceed the income
from the discharge of indebtedness with
respect to the debt instrument being
reacquired, and
``(ii) the aggregate amount of deductions
disallowed under clause (i) shall be allowed as a
deduction ratably over the 5-taxable-year period
described in clause (i)(I).
If the amount of the original issue discount accruing
before such 1st taxable year exceeds the income from the
discharge of indebtedness with respect to the applicable
debt
[[Page 123 STAT. 339]]
instrument being reacquired, the deductions shall be
disallowed in the order in which the original issue
discount is accrued.
``(B) Deemed debt for debt exchanges.--For purposes
of subparagraph (A), if any debt instrument is issued by
an issuer and the proceeds of such debt instrument are
used directly or indirectly by the issuer to reacquire
an applicable debt instrument of the issuer, the debt
instrument so issued shall be treated as issued for the
debt instrument being
reacquired. <<NOTE: Regulations. Applicability.>> If
only a portion of the proceeds from a debt instrument
are so used, the rules of subparagraph (A) shall apply
to the portion of any original issue discount on the
newly issued debt instrument which is equal to the
portion of the proceeds from such instrument used to
reacquire the outstanding instrument.
``(3) Applicable debt instrument.--For purposes of this
subsection--
``(A) Applicable debt instrument.--The term
`applicable debt instrument' means any debt instrument
which was issued by--
``(i) a C corporation, or
``(ii) any other person in connection with the
conduct of a trade or business by such person.
``(B) Debt instrument.--The term `debt instrument'
means a bond, debenture, note, certificate, or any other
instrument or contractual arrangement constituting
indebtedness (within the meaning of section 1275(a)(1)).
``(4) Reacquisition.--For purposes of this subsection--
``(A) In general.--The term `reacquisition' means,
with respect to any applicable debt instrument, any
acquisition of the debt instrument by--
``(i) the debtor which issued (or is otherwise
the obligor under) the debt instrument, or
``(ii) a related person to such debtor.
``(B) Acquisition.--The term `acquisition' shall,
with respect to any applicable debt instrument, include
an acquisition of the debt instrument for cash, the
exchange of the debt instrument for another debt
instrument (including an exchange resulting from a
modification of the debt instrument), the exchange of
the debt instrument for corporate stock or a partnership
interest, and the contribution of the debt instrument to
capital. Such term shall also include the complete
forgiveness of the indebtedness by the holder of the
debt instrument.
``(5) Other definitions and rules.--For purposes of this
subsection--
``(A) Related person.--The determination of whether
a person is related to another person shall be made in
the same manner as under subsection (e)(4).
``(B) Election.--
``(i) In general.--An election under this
subsection with respect to any applicable debt
instrument shall be made by including with the
return of tax imposed by chapter 1 for the taxable
year in which the reacquisition of the debt
instrument occurs a statement which--
``(I) clearly identifies such
instrument, and
[[Page 123 STAT. 340]]
``(II) includes the amount of income
to which paragraph (1) applies and such
other information as the Secretary may
prescribe.
``(ii) Election irrevocable.--Such election,
once made, is irrevocable.
``(iii) Pass-thru entities.--In the case of a
partnership, S corporation, or other pass-thru
entity, the election under this subsection shall
be made by the partnership, the S corporation, or
other entity involved.
``(C) Coordination with other exclusions.--If a
taxpayer elects to have this subsection apply to an
applicable debt instrument, subparagraphs (A), (B), (C),
and (D) of subsection (a)(1) shall not apply to the
income from the discharge of such indebtedness for the
taxable year of the election or any subsequent taxable
year.
``(D) Acceleration of deferred items.--
``(i) In general.--In the case of the death of
the taxpayer, the liquidation or sale of
substantially all the assets of the taxpayer
(including in a title 11 or similar case), the
cessation of business by the taxpayer, or similar
circumstances, any item of income or deduction
which is deferred under this subsection (and has
not previously been taken into account) shall be
taken into account in the taxable year in which
such event occurs (or in the case of a title 11 or
similar case, the day before the petition is
filed).
``(ii) <<NOTE: Applicability.>> Special rule
for pass-thru entities.--The rule of clause (i)
shall also apply in the case of the sale or
exchange or redemption of an interest in a
partnership, S corporation, or other pass- thru
entity by a partner, shareholder, or other person
holding an ownership interest in such entity.
``(6) Special rule for partnerships.--In the case of a
partnership, any income deferred under this subsection shall be
allocated to the partners in the partnership immediately before
the discharge in the manner such amounts would have been
included in the distributive shares of such partners under
section 704 if such income were recognized at such time. Any
decrease in a partner's share of partnership liabilities as a
result of such discharge shall not be taken into account for
purposes of section 752 at the time of the discharge to the
extent it would cause the partner to recognize gain under
section 731. Any decrease in partnership liabilities deferred
under the preceding sentence shall be taken into account by such
partner at the same time, and to the extent remaining in the
same amount, as income deferred under this subsection is
recognized.
``(7) Secretarial authority.--The Secretary may prescribe
such regulations, rules, or other guidance as may be necessary
or appropriate for purposes of applying this subsection,
including--
``(A) extending the application of the rules of
paragraph (5)(D) to other circumstances where
appropriate,
``(B) requiring reporting of the election (and such
other information as the Secretary may require) on
returns of tax for subsequent taxable years, and
[[Page 123 STAT. 341]]
``(C) rules for the application of this subsection
to partnerships, S corporations, and other pass-thru
entities, including for the allocation of deferred
deductions.''.
(b) <<NOTE: 26 USC 108 note.>> Effective Date.--The amendments made
by this section shall apply to discharges in taxable years ending after
December 31, 2008.
SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN
HIGH YIELD OBLIGATIONS.
(a) Suspension of Special Rules.--Section 163(e)(5) <<NOTE: 26 USC
163.>> (relating to special rules for original issue discount on
certain high yield obligations) is amended by redesignating subparagraph
(F) as subparagraph (G) and by inserting after subparagraph (E) the
following new subparagraph:
``(F) Suspension of application of paragraph.--
``(i) Temporary suspension.--This <<NOTE: Time
period.>> paragraph shall not apply to any
applicable high yield discount obligation issued
during the period beginning on September 1, 2008,
and ending on December 31, 2009, in exchange
(including an exchange resulting from a
modification of the debt instrument) for an
obligation which is not an applicable high yield
discount obligation and the issuer (or obligor) of
which is the same as the issuer (or obligor) of
such applicable high yield discount obligation.
The preceding sentence shall not apply to any
obligation the interest on which is interest
described in section 871(h)(4) (without regard to
subparagraph (D) thereof) or to any obligation
issued to a related person (within the meaning of
section 108(e)(4)).
``(ii) Successive application.--Any obligation
to which clause (i) applies shall not be treated
as an applicable high yield discount obligation
for purposes of applying this subparagraph to any
other obligation issued in exchange for such
obligation.
``(iii) Secretarial authority to suspend
application.--The Secretary may apply this
paragraph with respect to debt instruments issued
in periods following the period described in
clause (i) if the Secretary determines that such
application is appropriate in light of distressed
conditions in the debt capital markets.''.
(b) Interest Rate Used in Determining High Yield Obligations.--The
last sentence of section 163(i)(1) is amended--
(1) by inserting ``(i)'' after ``regulation'', and
(2) by inserting ``, or (ii) permit, on a temporary basis, a
rate to be used with respect to any debt instrument which is
higher than the applicable Federal rate if the Secretary
determines that such rate is appropriate in light of distressed
conditions in the debt capital markets'' before the period at
the end.
(c) <<NOTE: 26 USC 163 note.>> Effective Date.--
(1) Suspension.--The amendments made by subsection (a) shall
apply to obligations issued after August 31, 2008, in taxable
years ending after such date.
(2) Interest rate authority.--The amendments made by
subsection (b) shall apply to obligations issued after December
31, 2009, in taxable years ending after such date.
[[Page 123 STAT. 342]]
PART V--QUALIFIED SMALL BUSINESS STOCK
SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK
FOR 2009 AND 2010.
(a) In General.--Section 1202(a) is amended by adding at the end the
following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of
qualified small business stock acquired after the date of the
enactment of this paragraph and before January 1, 2011--
``(A) paragraph (1) shall be applied by substituting
`75 percent' for `50 percent', and
``(B) paragraph (2) shall not apply.''.
(b) <<NOTE: 26 USC 1202 note.>> Effective Date.--The amendment made
by this section shall apply to stock acquired after the date of the
enactment of this Act.
PART VI--S CORPORATIONS
SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS
TAX.
(a) In General.--Paragraph (7) of section 1374(d) <<NOTE: 26 USC
1374.>> (relating to definitions and special rules) is amended to read
as follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period'
means the 10-year period beginning with the 1st day of
the 1st taxable year for which the corporation was an S
corporation.
``(B) Special rule for 2009 and 2010.--In the case
of any taxable year beginning in 2009 or 2010, no tax
shall be imposed on the net recognized built-in gain of
an S corporation if the 7th taxable year in the
recognition period preceded such taxable
year. <<NOTE: Applicability.>> The preceding sentence
shall be applied separately with respect to any asset to
which paragraph (8) applies.
``(C) Special rule for distributions to
shareholders.--For purposes of applying this section to
any amount includible in income by reason of
distributions to shareholders pursuant to section
593(e)--
``(i) <<NOTE: Applicability.>> subparagraph
(A) shall be applied without regard to the phrase
`10-year', and
``(ii) subparagraph (B) shall not apply.''.
(b) <<NOTE: 26 USC 1374 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2008.
PART VII--RULES RELATING TO OWNERSHIP CHANGES
SEC. 1261. <<NOTE: 26 USC 382 note.>> CLARIFICATION OF REGULATIONS
RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING
AN OWNERSHIP CHANGE.
(a) Findings.--Congress finds as follows:
(1) The delegation of authority to the Secretary of the
Treasury under section 382(m) of the Internal Revenue Code of
1986 does not authorize the Secretary to provide exemptions or
special rules that are restricted to particular industries or
classes of taxpayers.
[[Page 123 STAT. 343]]
(2) Internal Revenue Service Notice 2008-83 is inconsistent
with the congressional intent in enacting such section 382(m).
(3) The legal authority to prescribe Internal Revenue
Service Notice 2008-83 is doubtful.
(4) However, as taxpayers should generally be able to rely
on guidance issued by the Secretary of the Treasury legislation
is necessary to clarify the force and effect of Internal Revenue
Service Notice 2008-83 and restore the proper application under
the Internal Revenue Code of 1986 of the limitation on built-in
losses following an ownership change of a bank.
(b) Determination of Force and Effect of Internal Revenue Service
Notice 2008-83 Exempting Banks From Limitation on Certain Built-in
Losses Following Ownership Change.--
(1) In general.--Internal Revenue Service Notice 2008-83--
(A) shall be deemed to have the force and effect of
law with respect to any ownership change (as defined in
section 382(g) of the Internal Revenue Code of 1986)
occurring on or before January 16, 2009, and
(B) shall have no force or effect with respect to
any ownership change after such date.
(2) Binding contracts.--Notwithstanding paragraph (1),
Internal Revenue Service Notice 2008-83 shall have the force and
effect of law with respect to any ownership change (as so
defined) which occurs after January 16, 2009, if such change--
(A) is pursuant to a written binding contract
entered into on or before such date, or
(B) is pursuant to a written agreement entered into
on or before such date and such agreement was described
on or before such date in a public announcement or in a
filing with the Securities and Exchange Commission
required by reason of such ownership change.
SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF
LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN
BUILT-IN LOSSES.
(a) In General.--Section 382 <<NOTE: 26 USC 382.>> is amended by
adding at the end the following new subsection:
``(n) Special Rule for Certain Ownership Changes.--
``(1) In general.--The limitation contained in subsection
(a) shall not apply in the case of an ownership change which is
pursuant to a restructuring plan of a taxpayer which--
``(A) is required under a loan agreement or a
commitment for a line of credit entered into with the
Department of the Treasury under the Emergency Economic
Stabilization Act of 2008, and
``(B) is intended to result in a rationalization of
the costs, capitalization, and capacity with respect to
the manufacturing workforce of, and suppliers to, the
taxpayer and its subsidiaries.
``(2) Subsequent acquisitions.--Paragraph (1) shall not
apply in the case of any subsequent ownership change unless such
ownership change is described in such paragraph.
``(3) Limitation based on control in corporation.--
[[Page 123 STAT. 344]]
``(A) In general.--Paragraph (1) shall not apply in
the case of any ownership change if, immediately after
such ownership change, any person (other than a
voluntary employees' beneficiary association under
section 501(c)(9)) owns stock of the new loss
corporation possessing 50 percent or more of the total
combined voting power of all classes of stock entitled
to vote, or of the total value of the stock of such
corporation.
``(B) Treatment of related persons.--
``(i) In general.--Related persons shall be
treated as a single person for purposes of this
paragraph.
``(ii) Related persons.--For purposes of
clause (i), a person shall be treated as related
to another person if--
``(I) such person bears a
relationship to such other person
described in section 267(b) or 707(b),
or
``(II) such persons are members of a
group of persons acting in concert.''.
(b) <<NOTE: 26 USC 382 note.>> Effective Date.--The amendment made
by this section shall apply to ownership changes after the date of the
enactment of this Act.
Subtitle D--Manufacturing Recovery Provisions
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT
BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY.
(a) In General.--Subparagraph (C) of section 144(a)(12) <<NOTE: 26
USC 144.>> is amended--
(1) by striking ``For purposes of this paragraph, the term''
and inserting ``For purposes of this paragraph--
``(i) In general.--The term'', and
(2) by striking the last sentence and inserting the
following new clauses:
``(ii) Certain facilities included.--Such term
includes facilities which are directly related and
ancillary to a manufacturing facility (determined
without regard to this clause) if--
``(I) such facilities are located on
the same site as the manufacturing
facility, and
``(II) not more than 25 percent of
the net proceeds of the issue are used
to provide such facilities.
``(iii) Special rules for bonds issued in 2009
and 2010.--In the case of any issue made after the
date of enactment of this clause and before
January 1, 2011, clause (ii) shall not apply and
the net proceeds from a bond shall be considered
to be used to provide a manufacturing facility if
such proceeds are used to provide--
``(I) a facility which is used in
the creation or production of intangible
property which is described in section
197(d)(1)(C)(iii), or
[[Page 123 STAT. 345]]
``(II) a facility which is
functionally related and subordinate to
a manufacturing facility (determined
without regard to this subclause) if
such facility is located on the same
site as the manufacturing facility.''.
(b) <<NOTE: 26 USC 144 note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES.
(a) In General.--Section 46 <<NOTE: 26 USC 46.>> (relating to
amount of credit) is amended by striking ``and'' at the end of paragraph
(3), by striking the period at the end of paragraph (4), and by adding
at the end the following new paragraph:
``(5) the qualifying advanced energy project credit.''.
(b) Amount of Credit.--Subpart E of part IV of subchapter A of
chapter 1 (relating to rules for computing investment credit) is amended
by inserting after section 48B the following new section:
``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the qualifying
advanced energy project credit for any taxable year is an amount equal
to 30 percent of the qualified investment for such taxable year with
respect to any qualifying advanced energy project of the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during such
taxable year which is part of a qualifying advanced energy
project.
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall apply
for purposes of this section.
``(3) Limitation.--The amount which is treated for all
taxable years with respect to any qualifying advanced energy
project shall not exceed the amount designated by the Secretary
as eligible for the credit under this section.
``(c) Definitions.--
``(1) Qualifying advanced energy project.--
``(A) In general.--The term `qualifying advanced
energy project' means a project--
``(i) which re-equips, expands, or establishes
a manufacturing facility for the production of--
``(I) property designed to be used
to produce energy from the sun, wind,
geothermal deposits (within the meaning
of section 613(e)(2)), or other
renewable resources,
``(II) fuel cells, microturbines, or
an energy storage system for use with
electric or hybrid-electric motor
vehicles,
``(III) electric grids to support
the transmission of intermittent sources
of renewable energy, including storage
of such energy,
``(IV) property designed to capture
and sequester carbon dioxide emissions,
[[Page 123 STAT. 346]]
``(V) property designed to refine or
blend renewable fuels or to produce
energy conservation technologies
(including energy-conserving lighting
technologies and smart grid
technologies),
``(VI) new qualified plug-in
electric drive motor vehicles (as
defined by section 30D), qualified plug-
in electric vehicles (as defined by
section 30(d)), or components which are
designed specifically for use with such
vehicles, including electric motors,
generators, and power control units, or
``(VII) other advanced energy
property designed to reduce greenhouse
gas emissions as may be determined by
the Secretary, and
``(ii) any portion of the qualified investment
of which is certified by the Secretary under
subsection (d) as eligible for a credit under this
section.
``(B) Exception.--Such term shall not include any
portion of a project for the production of any property
which is used in the refining or blending of any
transportation fuel (other than renewable fuels).
``(2) Eligible property.--The term `eligible property' means
any property--
``(A) which is necessary for the production of
property described in paragraph (1)(A)(i),
``(B) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including
a building or its structural components), but only
if such property is used as an integral part of
the qualified investment credit facility, and
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(d) Qualifying Advanced Energy Project Program.--
``(1) Establishment.--
``(A) In general.--Not later <<NOTE: Deadline.>>
than 180 days after the date of enactment of this
section, the Secretary, in consultation with the
Secretary of Energy, shall establish a qualifying
advanced energy project program to consider and award
certifications for qualified investments eligible for
credits under this section to qualifying advanced energy
project sponsors.
``(B) Limitation.--The total amount of credits that
may be allocated under the program shall not exceed
$2,300,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application containing such information as the Secretary
may require during the 2-year period beginning on the
date the Secretary establishes the program under
paragraph (1).
``(B) <<NOTE: Deadline.>> Time to meet criteria for
certification.--Each applicant for certification shall
have 1 year from the date of acceptance by the Secretary
of the application during which to provide to the
Secretary evidence that the requirements of the
certification have been met.
``(C) <<NOTE: Deadline.>> Period of issuance.--An
applicant which receives a certification shall have 3
years from the date of issuance
[[Page 123 STAT. 347]]
of the certification in order to place the project in
service and if such project is not placed in service by
that time period, then the certification shall no longer
be valid.
``(3) Selection criteria.--In determining which qualifying
advanced energy projects to certify under this section, the
Secretary--
``(A) shall take into consideration only those
projects where there is a reasonable expectation of
commercial viability, and
``(B) shall take into consideration which projects--
``(i) will provide the greatest domestic job
creation (both direct and indirect) during the
credit period,
``(ii) will provide the greatest net impact in
avoiding or reducing air pollutants or
anthropogenic emissions of greenhouse gases,
``(iii) have the greatest potential for
technological innovation and commercial
deployment,
``(iv) have the lowest levelized cost of
generated or stored energy, or of measured
reduction in energy consumption or greenhouse gas
emission (based on costs of the full supply
chain), and
``(v) have the shortest project time from
certification to completion.
``(4) Review and redistribution.--
``(A) <<NOTE: Deadline.>> Review.--Not later than 4
years after the date of enactment of this section, the
Secretary shall review the credits allocated under this
section as of such date.
``(B) Redistribution.--The Secretary may reallocate
credits awarded under this section if the Secretary
determines that--
``(i) there is an insufficient quantity of
qualifying applications for certification pending
at the time of the review, or
``(ii) any certification made pursuant to
paragraph (2) has been revoked pursuant to
paragraph (2)(B) because the project subject to
the certification has been delayed as a result of
third party opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary determines
that credits under this section are available for
reallocation pursuant to the requirements set forth in
paragraph (2), the Secretary is authorized to conduct an
additional program for applications for certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose
the identity of the applicant and the amount of the credit with
respect to such applicant.
``(e) Denial of Double Benefit.--A credit shall not be allowed under
this section for any qualified investment for which a credit is allowed
under section 48, 48A, or 48B.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) <<NOTE: 26 USC 49.>> is amended by
striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and by
adding after clause (iv) the following new clause:
[[Page 123 STAT. 348]]
``(v) the basis of any property which is part
of a qualifying advanced energy project under
section 48C.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the item
relating to section 48B the following new item:
``48C. Qualifying advanced energy project credit.''.
(d) <<NOTE: 26 USC 46 note.>> Effective Date.--The amendments made
by this section shall apply to periods after the date of the enactment
of this Act, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
Subtitle E--Economic Recovery Tools
SEC. 1401. RECOVERY ZONE BONDS.
(a) In General.--Subchapter Y of chapter 1 is amended by adding at
the end the following new part:
``PART III--RECOVERY ZONE BONDS
``Sec. 1400U-1. Allocation of recovery zone bonds.
``Sec. 1400U-2. Recovery zone economic development bonds.
``Sec. 1400U-3. Recovery zone facility bonds.
``SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.
``(a) Allocations.--
``(1) In general.--
``(A) General allocation.--The Secretary shall
allocate the national recovery zone economic development
bond limitation and the national recovery zone facility
bond limitation among the States in the proportion that
each such State's 2008 State employment decline bears to
the aggregate of the 2008 State employment declines for
all of the States.
``(B) Minimum allocation.--The Secretary shall
adjust the allocations under subparagraph (A) for any
calendar year for each State to the extent necessary to
ensure that no State receives less than 0.9 percent of
the national recovery zone economic development bond
limitation and 0.9 percent of the national recovery zone
facility bond limitation.
``(2) 2008 state employment decline.--For purposes of this
subsection, the term `2008 State employment decline' means, with
respect to any State, the excess (if any) of--
``(A) the number of individuals employed in such
State determined for December 2007, over
``(B) the number of individuals employed in such
State determined for December 2008.
``(3) Allocations by states.--
``(A) In general.--Each State with respect to which
an allocation is made under paragraph (1) shall
reallocate such allocation among the counties and large
municipalities in such State in the proportion to each
such county's or municipality's 2008 employment decline
bears to the aggregate of the 2008 employment declines
for all the counties and municipalities in such
State. <<NOTE: Waiver authority.>> A county or
municipality
[[Page 123 STAT. 349]]
may waive any portion of an allocation made under this
subparagraph.
``(B) Large municipalities.--For purposes of
subparagraph (A), the term `large municipality' means a
municipality with a population of more than 100,000.
``(C) Determination of local employment declines.--
For purposes of this paragraph, the employment decline
of any municipality or county shall be determined in the
same manner as determining the State employment decline
under paragraph (2), except that in the case of a
municipality any portion of which is in a county, such
portion shall be treated as part of such municipality
and not part of such county.
``(4) National limitations.--
``(A) Recovery zone economic development bonds.--
There is a national recovery zone economic development
bond limitation of $10,000,000,000.
``(B) Recovery zone facility bonds.--There is a
national recovery zone facility bond limitation of
$15,000,000,000.
``(b) Recovery Zone.--For purposes of this part, the term `recovery
zone' means--
``(1) any area designated by the issuer as having
significant poverty, unemployment, rate of home foreclosures, or
general distress,
``(2) any area designated by the issuer as economically
distressed by reason of the closure or realignment of a military
installation pursuant to the Defense Base Closure and
Realignment Act of 1990, and
``(3) any area for which a designation as an empowerment
zone or renewal community is in effect.
``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.
``(a) In General.--In the case of a recovery zone economic
development bond--
``(1) such bond shall be treated as a qualified bond for
purposes of section 6431, and
``(2) <<NOTE: Applicability.>> subsection (b) of such
section shall be applied by substituting `45 percent' for `35
percent'.
``(b) Recovery Zone Economic Development Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone economic development bond' means any build
America bond (as defined in section 54AA(d)) issued before
January 1, 2011, as part of issue if--
``(A) 100 percent of the excess of--
``(i) the available project proceeds (as
defined in section 54A) of such issue, over
``(ii) the amounts in a reasonably required
reserve (within the meaning of section 150(a)(3))
with respect to such issue,
are to be used for one or more qualified economic
development purposes, and
``(B) the issuer designates such bond for purposes
of this section.
``(2) Limitation on amount of bonds designated.--The maximum
aggregate face amount of bonds which may be designated by any
issuer under paragraph (1) shall not exceed
[[Page 123 STAT. 350]]
the amount of the recovery zone economic development bond
limitation allocated to such issuer under section 1400U-1.
``(c) Qualified Economic Development Purpose.--For purposes of this
section, the term `qualified economic development purpose' means
expenditures for purposes of promoting development or other economic
activity in a recovery zone, including--
``(1) capital expenditures paid or incurred with respect to
property located in such zone,
``(2) expenditures for public infrastructure and
construction of public facilities, and
``(3) expenditures for job training and educational
programs.
``SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.
``(a) In General.--For purposes of part IV of subchapter B (relating
to tax exemption requirements for State and local bonds), the term
`exempt facility bond' includes any recovery zone facility bond.
``(b) Recovery Zone Facility Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone facility bond' means any bond issued as part of
an issue if--
``(A) 95 percent or more of the net proceeds (as
defined in section 150(a)(3)) of such issue are to be
used for recovery zone property,
``(B) such bond is issued before January 1, 2011,
and
``(C) the issuer designates such bond for purposes
of this section.
``(2) Limitation on amount of bonds designated.--The maximum
aggregate face amount of bonds which may be designated by any
issuer under paragraph (1) shall not exceed the amount of
recovery zone facility bond limitation allocated to such issuer
under section 1400U-1.
``(c) Recovery Zone Property.--For purposes of this section--
``(1) In general.--The term `recovery zone property' means
any property to which section 168 applies (or would apply but
for section 179) if--
``(A) such property was constructed, reconstructed,
renovated, or acquired by purchase (as defined in
section 179(d)(2)) by the taxpayer after the date on
which the designation of the recovery zone took effect,
``(B) the original use of which in the recovery zone
commences with the taxpayer, and
``(C) substantially all of the use of which is in
the recovery zone and is in the active conduct of a
qualified business by the taxpayer in such zone.
``(2) Qualified business.--The term `qualified business'
means any trade or business except that--
``(A) the rental to others of real property located
in a recovery zone shall be treated as a qualified
business only if the property is not residential rental
property (as defined in section 168(e)(2)), and
``(B) such term shall not include any trade or
business consisting of the operation of any facility
described in section 144(c)(6)(B).
``(3) Special rules for substantial renovations and sale-
leaseback.--Rules similar <<NOTE: Applicability.>> to the rules
of subsections
[[Page 123 STAT. 351]]
(a)(2) and (b) of section 1397D shall apply for purposes of this
subsection.
``(d) Nonapplication of Certain Rules.--Sections 146 (relating to
volume cap) and 147(d) (relating to acquisition of existing property not
permitted) shall not apply to any recovery zone facility bond.''.
(b) Clerical Amendment.--The table of parts for subchapter Y of
chapter 1 of such Code is amended by adding at the end the following new
item:
``Part III. Recovery Zone Bonds.''.
(c) <<NOTE: 26 USC 1400U-1 note.>> Effective Date.--The amendments
made by this section shall apply to obligations issued after the date of
the enactment of this Act.
SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.
(a) In General.--Section 7871 <<NOTE: 26 USC 7871.>> is amended by
adding at the end the following new subsection:
``(f) Tribal Economic Development Bonds.--
``(1) Allocation of limitation.--
``(A) In general.--The Secretary shall allocate the
national tribal economic development bond limitation
among the Indian tribal governments in such manner as
the Secretary, in consultation with the Secretary of the
Interior, determines appropriate.
``(B) National limitation.--There is a national
tribal economic development bond limitation of
$2,000,000,000.
``(2) Bonds treated as exempt from tax.--In the case of a
tribal economic development bond--
``(A) notwithstanding subsection (c), such bond
shall be treated for purposes of this title in the same
manner as if such bond were issued by a State,
``(B) the Indian tribal government issuing such bond
and any instrumentality of such Indian tribal government
shall be treated as a State for purposes of section 141,
and
``(C) section 146 shall not apply.
``(3) Tribal economic development bond.--
``(A) In general.--For purposes of this section, the
term `tribal economic development bond' means any bond
issued by an Indian tribal government--
``(i) the interest on which would be exempt
from tax under section 103 if issued by a State or
local government, and
``(ii) which is designated by the Indian
tribal government as a tribal economic development
bond for purposes of this subsection.
``(B) Exceptions.--Such term shall not include any
bond issued as part of an issue if any portion of the
proceeds of such issue are used to finance--
``(i) any portion of a building in which class
II or class III gaming (as defined in section 4 of
the Indian Gaming Regulatory Act) is conducted or
housed or any other property actually used in the
conduct of such gaming, or
``(ii) any facility located outside the Indian
reservation (as defined in section 168(j)(6)).
[[Page 123 STAT. 352]]
``(C) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds which may be
designated by any Indian tribal government under
subparagraph (A) shall not exceed the amount of national
tribal economic development bond limitation allocated to
such government under paragraph (1).''.
(b) Study.--The Secretary of the Treasury, or the Secretary's
delegate, shall conduct a study of the effects of the amendment made by
subsection (a). <<NOTE: Deadline. Reports.>> Not later than 1 year
after the date of the enactment of this Act, the Secretary of the
Treasury, or the Secretary's delegate, shall report to Congress on the
results of the study conducted under this paragraph, including the
Secretary's recommendations regarding such amendment.
(c) <<NOTE: 26 USC 7871 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to obligations issued after the date of
the enactment of this Act.
SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(f)(1) <<NOTE: 26 USC 45.>> is
amended--
(1) by striking ``and'' at the end of subparagraph (C),
(2) by striking ``, 2007, 2008, and 2009.'' in subparagraph
(D), and inserting ``and 2007,'', and
(3) by adding at the end the following new subparagraphs:
``(E) $5,000,000,000 for 2008, and
``(F) $5,000,000,000 for 2009.''.
(b) <<NOTE: 26 USC 45D note.>> Special Rule for Allocation of
Increased 2008 Limitation.--The amount of the increase in the new
markets tax credit limitation for calendar year 2008 by reason of the
amendments made by subsection (a) shall be allocated in accordance with
section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified
community development entities (as defined in section 45D(c) of such
Code) which--
(1) submitted an allocation application with respect to
calendar year 2008, and
(2)(A) did not receive an allocation for such calendar year,
or
(B) received an allocation for such calendar year in an
amount less than the amount requested in the allocation
application.
SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME
HOUSING GRANTS.
Subsection (i) of section 42 is amended by adding at the end the
following new paragraph:
``(9) Coordination with low-income housing grants.--
``(A) Reduction in state housing credit ceiling for
low-income housing grants received in 2009.--For
purposes of this section, the amounts described in
clauses (i) through (iv) of subsection (h)(3)(C) with
respect to any State for 2009 shall each be reduced by
so much of such amount as is taken into account in
determining the amount of any grant to such State under
section 1602 of the American Recovery and Reinvestment
Tax Act of 2009.
``(B) Special rule for basis.--Basis of a qualified
low-income building shall not be reduced by the amount
of any grant described in subparagraph (A).''.
[[Page 123 STAT. 353]]
Subtitle F--Infrastructure Financing Tools
PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST
EXPENSE OF FINANCIAL INSTITUTIONS.
(a) In General.--Subsection (b) of section 265 <<NOTE: 26 USC
265.>> is amended by adding at the end the following new paragraph:
``(7) De minimis exception for bonds issued during 2009 or
2010.--
``(A) In general.--In applying paragraph (2)(A),
there shall not be taken into account tax-exempt
obligations issued during 2009 or 2010.
``(B) Limitation.--The amount of tax-exempt
obligations not taken into account by reason of
subparagraph (A) shall not exceed 2 percent of the
amount determined under paragraph (2)(B).
``(C) Refundings.--For purposes of this paragraph, a
refunding bond (whether a current or advance refunding)
shall be treated as issued on the date of the issuance
of the refunded bond (or in the case of a series of
refundings, the original bond).''.
(b) Treatment as Financial Institution Preference Item.--Clause (iv)
of section 291(e)(1)(B) is amended by adding at the end the following:
``That portion of any obligation not taken into account under paragraph
(2)(A) of section 265(b) by reason of paragraph (7) of such section
shall be treated for purposes of this section as having been acquired on
August 7, 1986.''.
(c) <<NOTE: 26 USC 265 note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after December 31,
2008.
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST
EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS.
(a) In General.--Paragraph (3) of section 265(b) (relating to
exception for certain tax-exempt obligations) is amended by adding at
the end the following new subparagraph:
``(G) Special rules for obligations issued during
2009 and 2010.--
``(i) Increase in limitation.--In
the <<NOTE: Applicability.>> case of obligations
issued during 2009 or 2010, subparagraphs (C)(i),
(D)(i), and (D)(iii)(II) shall each be applied by
substituting `$30,000,000' for `$10,000,000'.
``(ii) Qualified 501(c)(3) bonds treated as
issued by exempt organization.--In
the <<NOTE: Applicability.>> case of a qualified
501(c)(3) bond (as defined in section 145) issued
during 2009 or 2010, this paragraph shall be
applied by treating the 501(c)(3) organization for
whose benefit such bond was issued as the issuer.
``(iii) Special rule for qualified
financings.--In the case of a qualified financing
issue issued during 2009 or 2010--
``(I) subparagraph (F) shall not
apply, and
``(II) any obligation issued as a
part of such issue shall be treated as a
qualified tax-exempt
[[Page 123 STAT. 354]]
obligation if the requirements of this
paragraph are met with respect to each
qualified portion of the issue
(determined by treating each qualified
portion as a separate issue which is
issued by the qualified borrower with
respect to which such portion relates).
``(iv) Qualified financing issue.--For
purposes of this subparagraph, the term `qualified
financing issue' means any composite, pooled, or
other conduit financing issue the proceeds of
which are used directly or indirectly to make or
finance loans to 1 or more ultimate borrowers each
of whom is a qualified borrower.
``(v) Qualified portion.--For purposes of this
subparagraph, the term `qualified portion' means
that portion of the proceeds which are used with
respect to each qualified borrower under the
issue.
``(vi) Qualified borrower.--For purposes of
this subparagraph, the term `qualified borrower'
means a borrower which is a State or political
subdivision thereof or an organization described
in section 501(c)(3) and exempt from taxation
under section 501(a).''.
(b) <<NOTE: 26 USC 265 note.>> Effective Date.--The amendment made
by this section shall apply to obligations issued after December 31,
2008.
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS
ON TAX-EXEMPT BONDS.
(a) Interest on Private Activity Bonds Issued During 2009 and 2010
Not Treated as Tax Preference Item.--Subparagraph (C) of section
57(a)(5) <<NOTE: 26 USC 57.>> is amended by adding at the end a new
clause:
``(vi) Exception for bonds issued in 2009 and
2010.--
``(I) In general.--For purposes of
clause (i), the term `private activity
bond' shall not include any bond issued
after December 31, 2008, and before
January 1, 2011.
``(II) Treatment of refunding
bonds.--For purposes of subclause (I), a
refunding bond (whether a current or
advance refunding) shall be treated as
issued on the date of the issuance of
the refunded bond (or in the case of a
series of refundings, the original
bond).
``(III) Exception for certain
refunding bonds.--Subclause (II) shall
not apply to any refunding bond which is
issued to refund any bond which was
issued after December 31, 2003, and
before January 1, 2009.''.
(b) No Adjustment to Adjusted Current Earnings for Interest on Tax-
Exempt Bonds Issued During 2009 and 2010.--Subparagraph (B) of section
56(g)(4) is amended by adding at the end the following new clause:
``(iv) Tax exempt interest on bonds issued in
2009 and 2010.--
``(I) In general.--Clause (i) shall
not apply in the case of any interest on
a bond issued after December 31, 2008,
and before January 1, 2011.
[[Page 123 STAT. 355]]
``(II) Treatment of refunding
bonds.--For purposes of subclause (I), a
refunding bond (whether a current or
advance refunding) shall be treated as
issued on the date of the issuance of
the refunded bond (or in the case of a
series of refundings, the original
bond).
``(III) Exception for certain
refunding bonds.--Subclause (II) shall
not apply to any refunding bond which is
issued to refund any bond which was
issued after December 31, 2003, and
before January 1, 2009.''.
(c) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after December 31,
2008.
SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS.
(a) In General.--Paragraph (1) of section 142(i) <<NOTE: 26 USC
142.>> is amended by striking ``operate at speeds in excess of'' and
inserting ``be capable of attaining a maximum speed in excess of''.
(b) <<NOTE: 26 USC 142 note.>> Effective Date.--The amendment made
by this section shall apply to obligations issued after the date of the
enactment of this Act.
PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
CONTRACTORS
SEC. 1511. <<NOTE: 26 USC 3402 note.>> DELAY IN APPLICATION OF
WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.
Subsection (b) of section 511 of the Tax Increase Prevention and
Reconciliation Act of 2005 <<NOTE: 26 USC 3402.>> is amended by
striking ``December 31, 2010'' and inserting ``December 31, 2011''.
PART III--TAX CREDIT BONDS FOR SCHOOLS
SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for the construction, rehabilitation, or
repair of a public school facility or for the acquisition of
land on which such a facility is to be constructed with part of
the proceeds of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which may
be designated under subsection (a) by any issuer
[[Page 123 STAT. 356]]
shall not exceed the limitation amount allocated under subsection (d)
for such calendar year to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--There is a
national qualified school construction bond limitation for each calendar
year. Such limitation is--
``(1) $11,000,000,000 for 2009,
``(2) $11,000,000,000 for 2010, and
``(3) except as provided in subsection (e), zero after 2010.
``(d) Allocation of Limitation.--
``(1) Allocation among states.--Except as provided in
paragraph (2)(C), the limitation applicable under subsection (c)
for any calendar year shall be allocated by the Secretary among
the States in proportion to the respective amounts each such
State is eligible to receive under section 1124 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333)
for the most recent fiscal year ending before such calendar
year. The limitation amount allocated to a State under the
preceding sentence shall be allocated by the State to issuers
within such State.
``(2) 40 percent of limitation allocated among largest
school districts.--
``(A) In general.--40 percent of the limitation
applicable under subsection (c) for any calendar year
shall be allocated under subparagraph (B) by the
Secretary among local educational agencies which are
large local educational agencies for such year.
``(B) Allocation formula.--The amount to be
allocated under subparagraph (A) for any calendar year
shall be allocated among large local educational
agencies in proportion to the respective amounts each
such agency received under section 1124 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6333) for the most recent fiscal year ending
before such calendar year.
``(C) Reduction in state allocation.--The allocation
to any State under paragraph (1) shall be reduced by the
aggregate amount of the allocations under this paragraph
to large local educational agencies within such State.
``(D) Allocation of unused limitation to state.--The
amount allocated under this paragraph to a large local
educational agency for any calendar year may be
reallocated by such agency to the State in which such
agency is located for such calendar year. Any amount
reallocated to a State under the preceding sentence may
be allocated as provided in paragraph (1).
``(E) Large local educational agency.--For purposes
of this paragraph, the term `large local educational
agency' means, with respect to a calendar year, any
local educational agency if such agency is--
``(i) among the 100 local educational agencies
with the largest numbers of children aged 5
through 17 from families living below the poverty
level, as determined by the Secretary using the
most recent data available from the Department of
Commerce that are satisfactory to the Secretary,
or
``(ii) 1 of not more than 25 local educational
agencies (other than those described in clause
(i)) that the Secretary of Education determines
(based on the
[[Page 123 STAT. 357]]
most recent data available satisfactory to the
Secretary) are in particular need of assistance,
based on a low level of resources for school
construction, a high level of enrollment growth,
or such other factors as the Secretary deems
appropriate.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1) were
made on the basis of respective populations of individuals below
the poverty line (as defined by the Office of Management and
Budget). In making other allocations, the amount to be allocated
under paragraph (1) shall be reduced by the aggregate amount
allocated under this paragraph to possessions of the United
States.
``(4) Allocations for indian schools.--In addition to the
amounts otherwise allocated under this subsection, $200,000,000
for calendar year 2009, and $200,000,000 for calendar year 2010,
shall be allocated by the Secretary of the Interior for purposes
of the construction, rehabilitation, and repair of schools
funded by the Bureau of Indian Affairs. In the case of amounts
allocated under the preceding sentence, Indian tribal
governments (as defined in section 7701(a)(40)) shall be treated
as qualified issuers for purposes of this subchapter.
``(e) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. <<NOTE: Applicability.>> A similar rule shall apply to the
amounts allocated under subsection (d)(4).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) <<NOTE: 26 USC 54.>> is
amended by striking ``or'' at the end of subparagraph (C), by
inserting ``or'' at the end of subparagraph (D), and by
inserting after subparagraph (D) the following new subparagraph:
``(E) a qualified school construction bond,''.
(2) Subparagraph (C) of section 54A(d)(2) is amended by
striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and by
adding at the end the following new clause:
``(v) in the case of a qualified school
construction bond, a purpose specified in section
54F(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54F. Qualified school construction bonds.''.
(c) <<NOTE: 26 USC 54A note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after the date of the
enactment of this Act.
[[Page 123 STAT. 358]]
SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Section 54E(c)(1) <<NOTE: 26 USC 54.>> is amended
by striking ``and 2009'' and inserting ``and $1,400,000,000 for 2009 and
2010''.
(b) <<NOTE: 26 USC 54E note.>> Effective Date.--The amendment made
by this section shall apply to obligations issued after December 31,
2008.
PART IV--BUILD AMERICA BONDS
SEC. 1531. BUILD AMERICA BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 is amended by
adding at the end the following new subpart:
``Subpart J--Build America Bonds
``Sec. 54AA. Build America bonds.
``SEC. 54AA. BUILD AMERICA BONDS.
``(a) In General.--If a taxpayer holds a build America bond on one
or more interest payment dates of the bond during any taxable year,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--The amount of the credit determined under
this subsection with respect to any interest payment date for a build
America bond is 35 percent of the amount of interest payable by the
issuer with respect to such date .
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by paragraph
(1) for such taxable year, such excess shall be carried to the
succeeding taxable year and added to the credit allowable under
subsection (a) for such taxable year (determined before the
application of paragraph (1) for such succeeding taxable year).
``(d) Build America Bond.--
``(1) In general.--For purposes of this section, the term
`build America bond' means any obligation (other than a private
activity bond) if--
``(A) the interest on such obligation would (but for
this section) be excludable from gross income under
section 103,
``(B) such obligation is issued before January 1,
2011, and
``(C) the issuer makes an irrevocable election to
have this section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
[[Page 123 STAT. 359]]
``(A) for purposes of section 149(b), a build
America bond shall not be treated as federally
guaranteed by reason of the credit allowed under
subsection (a) or section 6431,
``(B) for purposes of section 148, the yield on a
build America bond shall be determined without regard to
the credit allowed under subsection (a), and
``(C) a bond shall not be treated as a build America
bond if the issue price has more than a de minimis
amount (determined under rules similar to the rules of
section 1273(a)(3)) of premium over the stated principal
amount of the bond.
``(e) Interest Payment Date.--For purposes of this section, the term
`interest payment date' means any date on which the holder of record of
the build America bond is entitled to a payment of interest under such
bond.
``(f) Special Rules.--
``(1) Interest on build america bonds includible in gross
income for federal income tax purposes.--For purposes of this
title, interest on any build America bond shall be includible in
gross income.
``(2) Application of certain rules.--Rules similar to the
rules of subsections (f), (g), (h), and (i) of section 54A shall
apply for purposes of the credit allowed under subsection (a).
``(g) Special Rule for Qualified Bonds Issued Before 2011.--In the
case of a qualified bond issued before January 1, 2011--
``(1) Issuer allowed refundable credit.--In lieu of any
credit allowed under this section with respect to such bond, the
issuer of such bond shall be allowed a credit as provided in
section 6431.
``(2) Qualified bond.--For purposes of this subsection, the
term `qualified bond' means any build America bond issued as
part of an issue if--
``(A) 100 percent of the excess of--
``(i) the available project proceeds (as
defined in section 54A) of such issue, over
``(ii) the amounts in a reasonably required
reserve (within the meaning of section 150(a)(3))
with respect to such issue,
are to be used for capital expenditures, and
``(B) the issuer makes an irrevocable election to
have this subsection apply.
``(h) Regulations.--The Secretary may prescribe such regulations and
other guidance as may be necessary or appropriate to carry out this
section and section 6431.''.
(b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of
chapter 65 is amended by adding at the end the following new section:
``SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.
``(a) In General.--In the case of a qualified bond issued before
January 1, 2011, the issuer of such bond shall be allowed a credit with
respect to each interest payment under such bond which shall be payable
by the Secretary as provided in subsection (b).
``(b) Payment of Credit.--The Secretary shall pay (contemporaneously
with each interest payment date under such bond) to the issuer of such
bond (or to any person who makes such
[[Page 123 STAT. 360]]
interest payments on behalf of the issuer) 35 percent of the interest
payable under such bond on such date.
``(c) Application of Arbitrage Rules.--For purposes of section 148,
the yield on a qualified bond shall be reduced by the credit allowed
under this section.
``(d) Interest Payment Date.--For purposes of this subsection, the
term `interest payment date' means each date on which interest is
payable by the issuer under the terms of the bond.
``(e) Qualified Bond.--For purposes of this subsection, the term
`qualified bond' has the meaning given such term in section 54AA(g).''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6428'' and inserting ``6428, or
6431,''.
(2) Section 54A(c)(1)(B) <<NOTE: 26 USC 54.>> is amended by
striking ``subpart C'' and inserting ``subparts C and J''.
(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are
each amended by striking ``and I'' and inserting ``, I, and J''.
(4) Section 6211(b)(4)(A) is amended by striking ``and
6428'' and inserting ``6428, and 6431''.
(5) Section 6401(b)(1) is amended by striking ``and I'' and
inserting ``I, and J''.
(6) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:
``subpart j. build america bonds.''.
(7) The table of section for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6431. Credit for qualified bonds allowed to issuer.''.
(d) <<NOTE: 26 USC 54AA note.>> Transitional Coordination With
State Law.--Except as otherwise provided by a State after the date of
the enactment of this Act, the interest on any build America bond (as
defined in section 54AA of the Internal Revenue Code of 1986, as added
by this section) and the amount of any credit determined under such
section with respect to such bond shall be treated for purposes of the
income tax laws of such State as being exempt from Federal income tax.
(e) <<NOTE: 26 USC 54 note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after the date of the
enactment of this Act.
PART V--REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT
BOND CREDITS
SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX
CREDIT BOND CREDITS.
(a) In General.--Part I of subchapter M of chapter 1 is amended by
inserting after section 853 the following new section:
``SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.
``(a) General Rule.--A regulated investment company--
``(1) which holds (directly or indirectly) one or more tax
credit bonds on one or more applicable dates during the taxable
year, and
[[Page 123 STAT. 361]]
``(2) which meets the requirements of section 852(a) for the
taxable year,
may elect the application of this section with respect to credits
allowable to the investment company during such taxable year with
respect to such bonds.
``(b) Effect of Election.--If the election provided in subsection
(a) is in effect for any taxable year--
``(1) the regulated investment company shall not be allowed
any credits to which subsection (a) applies for such taxable
year,
``(2) the regulated investment company shall--
``(A) include in gross income (as interest) for such
taxable year an amount equal to the amount that such
investment company would have included in gross income
with respect to such credits if this section did not
apply, and
``(B) increase the amount of the dividends paid
deduction for such taxable year by the amount of such
income, and
``(3) each shareholder of such investment company shall--
``(A) include in gross income an amount equal to
such shareholder's proportionate share of the interest
income attributable to such credits, and
``(B) be allowed the shareholder's proportionate
share of such credits against the tax imposed by this
chapter.
``(c) <<NOTE: Deadline.>> Notice to Shareholders.--For purposes of
subsection (b)(3), the shareholder's proportionate share of--
``(1) credits described in subsection (a), and
``(2) gross income in respect of such credits,
shall not exceed the amounts so designated by the regulated investment
company in a written notice mailed to its shareholders not later than 60
days after the close of its taxable year.
``(d) Manner of Making Election and Notifying Shareholders.--The
election provided in subsection (a) and the notice to shareholders
required by subsection (c) shall be made in such manner as the Secretary
may prescribe.
``(e) Definitions and Special Rules.--
``(1) Definitions.--For purposes of this subsection--
``(A) Tax credit bond.--The term `tax credit bond'
means--
``(i) a qualified tax credit bond (as defined
in section 54A(d)),
``(ii) a build America bond (as defined in
section 54AA(d)), and
``(iii) any bond for which a credit is
allowable under subpart H of part IV of subchapter
A of this chapter.
``(B) Applicable date.--The term `applicable date'
means--
``(i) in the case of a qualified tax credit
bond or a bond described in subparagraph (A)(iii),
any credit allowance date (as defined in section
54A(e)(1)), and
``(ii) in the case of a build America bond (as
defined in section 54AA(d)), any interest payment
date (as defined in section 54AA(e)).
``(2) <<NOTE: Applicability.>> Stripped tax credit bonds.--
If the ownership of a tax credit bond is separated from the
credit with respect to such bond, subsection (a) shall be
applied by reference to the
[[Page 123 STAT. 362]]
instruments evidencing the entitlement to the credit rather than
the tax credit bond.
``(f) Regulations, etc.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or appropriate to
carry out the purposes of this section, including methods for
determining a shareholder's proportionate share of credits.''.
(b) Conforming Amendments.--
(1) Section 54(l) <<NOTE: 26 USC 54.>> is amended by
striking paragraph (4) and by redesignating paragraphs (5) and
(6) as paragraphs (4) and (5), respectively.
(2) Section 54A(h) is amended to read as follows:
``(h) <<NOTE: Procedures.>> Bonds Held by Real Estate Investment
Trusts.--If any qualified tax credit bond is held by a real estate
investment trust, the credit determined under subsection (a) shall be
allowed to beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be distributed to
such beneficiaries) under procedures prescribed by the Secretary.''.
(3) The table of sections for part I of subchapter M of
chapter 1 is amended by inserting after the item relating to
section 853 the following new item:
``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.
(c) <<NOTE: 26 USC 54 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years ending after the date of
the enactment of this Act.
Subtitle G--Other Provisions
SEC. 1601. <<NOTE: 26 USC 54C note.>> APPLICATION OF CERTAIN LABOR
STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED
BONDS.
Subchapter IV of chapter 31 of the title 40, United States Code,
shall apply to projects financed with the proceeds of--
(1) any new clean renewable energy bond (as defined in
section 54C of the Internal Revenue Code of 1986) issued after
the date of the enactment of this Act,
(2) any qualified energy conservation bond (as defined in
section 54D of the Internal Revenue Code of 1986) issued after
the date of the enactment of this Act,
(3) any qualified zone academy bond (as defined in section
54E of the Internal Revenue Code of 1986) issued after the date
of the enactment of this Act,
(4) any qualified school construction bond (as defined in
section 54F of the Internal Revenue Code of 1986), and
(5) any recovery zone economic development bond (as defined
in section 1400U-2 of the Internal Revenue Code of 1986).
SEC. 1602. <<NOTE: 26 USC 42 note.>> GRANTS TO STATES FOR LOW-INCOME
HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT
ALLOCATIONS FOR 2009.
(a) In General.--The Secretary of the Treasury shall make a grant to
the housing credit agency of each State in an amount equal to such
State's low-income housing grant election amount.
(b) Low-Income Housing Grant Election Amount.--For purposes of this
section, the term ``low-income housing grant election amount'' means,
with respect to any State, such amount as the
[[Page 123 STAT. 363]]
State may elect which does not exceed 85 percent of the product of--
(1) the sum of--
(A) 100 percent of the State housing credit ceiling
for 2009 which is attributable to amounts described in
clauses (i) and (iii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986, and
(B) 40 percent of the State housing credit ceiling
for 2009 which is attributable to amounts described in
clauses (ii) and (iv) of such section, multiplied by
(2) 10.
(c) Subawards for Low-Income Buildings.--
(1) In general.--A State housing credit agency receiving a
grant under this section shall use such grant to make subawards
to finance the construction or acquisition and rehabilitation of
qualified low-income buildings. A subaward under this section
may be made to finance a qualified low-income building with or
without an allocation under section 42 of the Internal Revenue
Code of 1986, except that a State housing credit agency may make
subawards to finance qualified low-income buildings without an
allocation only if it makes a determination that such use will
increase the total funds available to the State to build and
rehabilitate affordable housing. <<NOTE: Procedures.>> In
complying with such determination requirement, a State housing
credit agency shall establish a process in which applicants that
are allocated credits are required to demonstrate good faith
efforts to obtain investment commitments for such credits before
the agency makes such subawards.
(2) Subawards subject to same requirements as low-income
housing credit allocations.--Any such subaward with respect to
any qualified low-income building shall be made in the same
manner and shall be subject to the same limitations (including
rent, income, and use restrictions on such building) as an
allocation of housing credit dollar amount allocated by such
State housing credit agency under section 42 of the Internal
Revenue Code of 1986, except that such subawards shall not be
limited by, or otherwise affect (except as provided in
subsection (h)(3)(J) of such section), the State housing credit
ceiling applicable to such agency.
(3) Compliance and asset management.--The State housing
credit agency shall perform asset management functions to ensure
compliance with section 42 of the Internal Revenue Code of 1986
and the long-term viability of buildings funded by any subaward
under this section. The State housing credit agency may collect
reasonable fees from a subaward recipient to cover expenses
associated with the performance of its duties under this
paragraph. The State housing credit agency may retain an agent
or other private contractor to satisfy the requirements of this
paragraph.
(4) Recapture.--The State housing credit agency shall impose
conditions or restrictions, including a requirement providing
for recapture, on any subaward under this section so as to
assure that the building with respect to which such subaward is
made remains a qualified low-income building during the
compliance period. Any such recapture shall be payable to the
Secretary of the Treasury for deposit in the general fund of the
Treasury and may be enforced by means
[[Page 123 STAT. 364]]
of liens or such other methods as the Secretary of the Treasury
determines appropriate.
(d) <<NOTE: Deadline.>> Return of Unused Grant Funds.--Any grant
funds not used to make subawards under this section before January 1,
2011, shall be returned to the Secretary of the Treasury on such date.
Any subawards returned to the State housing credit agency on or after
such date shall be promptly returned to the Secretary of the Treasury.
Any amounts returned to the Secretary of the Treasury under this
subsection shall be deposited in the general fund of the Treasury.
(e) Definitions.--Any term used in this section which is also used
in section 42 of the Internal Revenue Code of 1986 shall have the same
meaning for purposes of this section as when used in such section 42.
Any reference in this section to the Secretary of the Treasury shall be
treated as including the Secretary's delegate.
(f) Appropriations.--There is hereby appropriated to the Secretary
of the Treasury such sums as may be necessary to carry out this section.
SEC. 1603. <<NOTE: 26 USC 48 note.>> GRANTS FOR SPECIFIED ENERGY
PROPERTY IN LIEU OF TAX CREDITS.
(a) In General.--Upon application, the Secretary of the Treasury
shall, subject to the requirements of this section, provide a grant to
each person who places in service specified energy property to reimburse
such person for a portion of the expense of such property as provided in
subsection (b). No grant shall be made under this section with respect
to any property unless such property--
(1) is placed in service during 2009 or 2010, or
(2) is placed in service after 2010 and before the credit
termination date with respect to such property, but only if the
construction of such property began during 2009 or 2010.
(b) Grant Amount.--
(1) In general.--The amount of the grant under subsection
(a) with respect to any specified energy property shall be the
applicable percentage of the basis of such property.
(2) Applicable percentage.--For purposes of paragraph (1),
the term ``applicable percentage'' means--
(A) 30 percent in the case of any property described
in paragraphs (1) through (4) of subsection (d), and
(B) 10 percent in the case of any other property.
(3) Dollar limitations.--In the case of property described
in paragraph (2), (6), or (7) of subsection (d), the amount of
any grant under this section with respect to such property shall
not exceed the limitation described in section 48(c)(1)(B),
48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of
1986, respectively, with respect to such property.
(c) Time for Payment of Grant.--The Secretary of the Treasury shall
make payment of any grant under subsection (a) during the 60-day period
beginning on the later of--
(1) the date of the application for such grant, or
(2) the date the specified energy property for which the
grant is being made is placed in service.
(d) Specified Energy Property.--For purposes of this section, the
term ``specified energy property'' means any of the following:
[[Page 123 STAT. 365]]
(1) Qualified facilities.--Any qualified property (as
defined in section 48(a)(5)(D) of the Internal Revenue Code of
1986) which is part of a qualified facility (within the meaning
of section 45 of such Code) described in paragraph (1), (2),
(3), (4), (6), (7), (9), or (11) of section 45(d) of such Code.
(2) Qualified fuel cell property.--Any qualified fuel cell
property (as defined in section 48(c)(1) of such Code).
(3) Solar property.--Any property described in clause (i) or
(ii) of section 48(a)(3)(A) of such Code.
(4) Qualified small wind energy property.--Any qualified
small wind energy property (as defined in section 48(c)(4) of
such Code).
(5) Geothermal property.--Any property described in clause
(iii) of section 48(a)(3)(A) of such Code.
(6) Qualified microturbine property.--Any qualified
microturbine property (as defined in section 48(c)(2) of such
Code).
(7) Combined heat and power system property.--Any combined
heat and power system property (as defined in section 48(c)(3)
of such Code).
(8) Geothermal heat pump property.--Any property described
in clause (vii) of section 48(a)(3)(A) of such Code.
Such term shall not include any property unless depreciation (or
amortization in lieu of depreciation) is allowable with respect to such
property.
(e) Credit Termination Date.--For purposes of this section, the term
``credit termination date'' means--
(1) in the case of any specified energy property which is
part of a facility described in paragraph (1) of section 45(d)
of the Internal Revenue Code of 1986, January 1, 2013,
(2) in the case of any specified energy property which is
part of a facility described in paragraph (2), (3), (4), (6),
(7), (9), or (11) of section 45(d) of such Code, January 1,
2014, and
(3) in the case of any specified energy property described
in section 48 of such Code, January 1, 2017.
In the case <<NOTE: Applicability.>> of any property which is described
in paragraph (3) and also in another paragraph of this subsection,
paragraph (3) shall apply with respect to such property.
(f) Application of Certain Rules.--In making grants under this
section, the Secretary of the Treasury shall apply rules similar to the
rules of section 50 of the Internal Revenue Code of 1986. In applying
such rules, if the property is disposed of, or otherwise ceases to be
specified energy property, the Secretary of the Treasury shall provide
for the recapture of the appropriate percentage of the grant amount in
such manner as the Secretary of the Treasury determines appropriate.
(g) Exception for Certain Non-Taxpayers.--The Secretary of the
Treasury shall not make any grant under this section to--
(1) any Federal, State, or local government (or any
political subdivision, agency, or instrumentality thereof),
(2) any organization described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code,
(3) any entity referred to in paragraph (4) of section 54(j)
of such Code, or
[[Page 123 STAT. 366]]
(4) any partnership or other pass-thru entity any partner
(or other holder of an equity or profits interest) of which is
described in paragraph (1), (2) or (3).
(h) Definitions.--Terms used in this section which are also used in
section 45 or 48 of the Internal Revenue Code of 1986 shall have the
same meaning for purposes of this section as when used in such section
45 or 48. Any reference in this section to the Secretary of the Treasury
shall be treated as including the Secretary's delegate.
(i) Appropriations.--There is hereby appropriated to the Secretary
of the Treasury such sums as may be necessary to carry out this section.
(j) Termination.--The <<NOTE: Deadline.>> Secretary of the Treasury
shall not make any grant to any person under this section unless the
application of such person for such grant is received before October 1,
2011.
SEC. 1604. <<NOTE: 31 USC 3101.>> INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United States Code, is
amended by striking out the dollar limitation contained in such
subsection and inserting ``$12,104,000,000,000''.
Subtitle H--Prohibition on Collection of Certain Payments Made Under the
Continued Dumping and Subsidy Offset Act of 2000
SEC. 1701. <<NOTE: 19 USC 1675c note.>> PROHIBITION ON COLLECTION OF
CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000.
(a) In General.--Notwithstanding any other provision of law, neither
the Secretary of Homeland Security nor any other person may--
(1) require repayment of, or attempt in any other way to
recoup, any payments described in subsection (b); or
(2) offset any past, current, or future distributions of
antidumping or countervailing duties assessed with respect to
imports from countries that are not parties to the North
American Free Trade Agreement in an attempt to recoup any
payments described in subsection (b).
(b) Payments Described.--Payments described in this subsection are
payments of antidumping or countervailing duties made pursuant to the
Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the
Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII
of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat.
154))) that were--
(1) assessed and paid on imports of goods from countries
that are parties to the North American Free Trade Agreement; and
(2) distributed on or after January 1, 2001, and before
January 1, 2006.
(c) Payment of Funds Collected or Withheld.--
Not <<NOTE: Deadline.>> 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
[[Page 123 STAT. 367]]
(2) fully distribute any antidumping or countervailing
duties that the U.S. Customs and Border Protection is
withholding as an offset as described in subsection (a)(2).
(d) Limitation.--Nothing in this section shall be construed to
prevent the Secretary of Homeland Security, or any other person, from
requiring repayment of, or attempting to otherwise recoup, any payments
described in subsection (b) as a result of--
(1) a finding of false statements or other misconduct by a
recipient of such a payment; or
(2) the reliquidation of an entry with respect to which such
a payment was made.
Subtitle <<NOTE: Trade and Globalization Adjustment Assistance Act of
2009. 19 USC 2101 note.>> I--Trade Adjustment Assistance
SEC. 1800. SHORT TITLE.
This subtitle may be cited as the ``Trade and Globalization
Adjustment Assistance Act of 2009''.
PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Subpart A--Trade Adjustment Assistance for Service Sector Workers
SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR
AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION.
(a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
2319) is amended--
(1) in paragraph (1)--
(A) by striking ``or appropriate subdivision of a
firm''; and
(B) by striking ``or subdivision'';
(2) in paragraph (2), by striking ``employment--'' and all
that follows and inserting ``employment, has been totally or
partially separated from such employment.'';
(3) by inserting after paragraph (2) the following:
``(3) Subject to section 222(d)(5), the term `firm' means--
``(A) a firm, including an agricultural firm,
service sector firm, or public agency; or
``(B) an appropriate subdivision thereof.'';
(4) by inserting after paragraph (6) the following:
``(7) The term `public agency' means a department or agency
of a State or local government or of the Federal Government, or
a subdivision thereof.'';
(5) in paragraph (11), by striking ``, or in a subdivision
of which,''; and
(6) by adding at the end the following:
``(18) The term `service sector firm' means a firm engaged
in the business of supplying services.''.
(b) Group Eligibility Requirements.--Section 222 of the Trade Act of
1974 (19 U.S.C. 2272) is amended--
(1) in subsection (a)(2)--
(A) by amending subparagraph (A)(ii) to read as
follows:
[[Page 123 STAT. 368]]
``(ii)(I) imports of articles or services like or directly
competitive with articles produced or services supplied by such
firm have increased;
``(II) imports of articles like or directly competitive with
articles--
``(aa) into which one or more component parts
produced by such firm are directly incorporated, or
``(bb) which are produced directly using services
supplied by such firm,
have increased; or
``(III) imports of articles directly incorporating one or
more component parts produced outside the United States that are
like or directly competitive with imports of articles
incorporating one or more component parts produced by such firm
have increased; and''; and
(B) by amending subparagraph (B) to read as follows:
``(B)(i)(I) there has been a shift by such workers' firm to
a foreign country in the production of articles or the supply of
services like or directly competitive with articles which are
produced or services which are supplied by such firm; or
``(II) such workers' firm has acquired from a foreign
country articles or services that are like or directly
competitive with articles which are produced or services which
are supplied by such firm; and
``(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in clause (i)(II)
contributed importantly to such workers' separation or threat of
separation.'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a) the following:
``(b) Adversely Affected Workers in Public Agencies.--A
group <<NOTE: Certification.>> of workers in a public agency shall be
certified by the Secretary as eligible to apply for adjustment
assistance under this chapter pursuant to a petition filed under section
221 if the Secretary determines that--
``(1) a significant number or proportion of the workers in
the public agency have become totally or partially separated, or
are threatened to become totally or partially separated;
``(2) the public agency has acquired from a foreign country
services like or directly competitive with services which are
supplied by such agency; and
``(3) the acquisition of services described in paragraph (2)
contributed importantly to such workers' separation or threat of
separation.''.
(c) Basis for Secretary's Determinations.--Section 222 of the Trade
Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding
at the end the following:
``(e) Basis for Secretary's Determinations.--
``(1) In general.--The Secretary shall, in determining
whether to certify a group of workers under section 223, obtain
from the workers' firm, or a customer of the workers' firm,
information the Secretary determines to be necessary to make the
certification, through questionnaires and in such other manner
as the Secretary determines appropriate.
[[Page 123 STAT. 369]]
``(2) Additional information.--The Secretary may seek
additional information to determine whether to certify a group
of workers under subsection (a), (b), or (c)--
``(A) by contacting--
``(i) officials or employees of the workers'
firm;
``(ii) officials of customers of the workers'
firm;
``(iii) officials of certified or recognized
unions or other duly authorized representatives of
the group of workers; or
``(iv) one-stop operators or one-stop partners
(as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)); or
``(B) by using other available sources of
information.
``(3) Verification of information.--
``(A) Certification.--The Secretary shall require a
firm or customer to certify--
``(i) all information obtained under paragraph
(1) from the firm or customer (as the case may be)
through questionnaires; and
``(ii) all other information obtained under
paragraph (1) from the firm or customer (as the
case may be) on which the Secretary relies in
making a determination under section 223, unless
the Secretary has a reasonable basis for
determining that such information is accurate and
complete without being certified.
``(B) Use of subpoenas.--The
Secretary <<NOTE: Deadline.>> shall require the
workers' firm or a customer of the workers' firm to
provide information requested by the Secretary under
paragraph (1) by subpoena pursuant to section 249 if the
firm or customer (as the case may be) fails to provide
the information within 20 days after the date of the
Secretary's request, unless the firm or customer (as the
case may be) demonstrates to the satisfaction of the
Secretary that the firm or customer (as the case may be)
will provide the information within a reasonable period
of time.
``(C) Protection of confidential information.--The
Secretary may not release information obtained under
paragraph (1) that the Secretary considers to be
confidential business information unless the firm or
customer (as the case may be) submitting the
confidential business information had notice, at the
time of submission, that the information would be
released by the Secretary, or the firm or customer (as
the case may be) subsequently consents to the release of
the information. Nothing in this subparagraph shall be
construed to prohibit the Secretary from providing such
confidential business information to a court in camera
or to another party under a protective order issued by a
court.''.
(d) Penalties.--Section 244 of the Trade Act of 1974 (19 U.S.C.
2316) is amended to read as follows:
``SEC. 244. PENALTIES.
``Any person who--
``(1) makes a false statement of a material fact knowing it
to be false, or knowingly fails to disclose a material fact, for
the purpose of obtaining or increasing for that person or for
any other person any payment authorized to be furnished
[[Page 123 STAT. 370]]
under this chapter or pursuant to an agreement under section
239, or
``(2) makes a false statement of a material fact knowing it
to be false, or knowingly fails to disclose a material fact,
when providing information to the Secretary during an
investigation of a petition under section 221,
shall be imprisoned for not more than one year, or fined under title 18,
United States Code, or both.''.
(e) Conforming Amendments.--
(1) Section 221(a) of the Trade Act of 1974 (19 U.S.C.
2271(a)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A)--
(I) by striking ``Secretary'' and
inserting ``Secretary of Labor''; and
(II) by striking ``or subdivision''
and inserting ``(as defined in section
247)''; and
(ii) in subparagraph (A), by striking
``(including workers in an agricultural firm or
subdivision of any agricultural firm)'';
(B) in paragraph (2)(A), by striking ``rapid
response assistance'' and inserting ``rapid response
activities''; and
(C) in paragraph (3), by inserting ``and on the
website of the Department of Labor'' after ``Federal
Register''.
(2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272),
as amended, is further amended--
(A) by striking ``(including workers in any
agricultural firm or subdivision of an agricultural
firm)'' each place it appears;
(B) in subsection (a)--
(i) in paragraph (1), by striking ``, or an
appropriate subdivision of the firm,''; and
(ii) in paragraph (2), by striking ``or
subdivision'' each place it appears;
(C) in subsection (c) (as redesignated)--
(i) in paragraph (2)--
(I) by striking ``(or subdivision)''
each place it appears;
(II) by inserting ``or service''
after ``the article''; and
(III) by striking ``(c) (3)'' and
inserting ``(d) (3)''; and
(ii) in paragraph (3), by striking ``(or
subdivision)'' each place it appears; and
(D) in subsection (d) (as redesignated)--
(i) by striking ``For purposes'' and inserting
``Definitions.--For purposes'';
(ii) in paragraph (2), by striking ``, or
appropriate subdivision of a firm,'' each place it
appears;
(iii) by amending paragraph (3) to read as
follows:
``(3) Downstream producer.--
``(A) In general.--The term `downstream producer'
means a firm that performs additional, value-added
production processes or services directly for another
firm for articles or services with respect to which a
group of workers in such other firm has been certified
under subsection (a).
[[Page 123 STAT. 371]]
``(B) Value-added production processes or
services.--For purposes of subparagraph (A), value-added
production processes or services include final assembly,
finishing, testing, packaging, or maintenance or
transportation services.'';
(iv) in paragraph (4)--
(I) by striking ``(or
subdivision)''; and
(II) by inserting ``, or services,
used in the production of articles or in
the supply of services, as the case may
be,'' after ``for articles''; and
(v) by adding at the end the following:
``(5) Reference to firm.--For purposes of subsection (a),
the term `firm' does not include a public agency.''.
(3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C.
2291(a)(2)) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``or subdivision of a firm''; and
(B) in subparagraph (C), by striking ``or
subdivision''.
SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.
Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended,
is further amended by adding at the end the following:
``(f) Firms Identified by the International Trade Commission.--
Notwithstanding any other provision of this chapter, a group of workers
covered by a petition filed under section 221 shall be certified under
subsection (a) as eligible to apply for adjustment assistance under this
chapter if--
``(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a domestic
industry in an investigation resulting in--
``(A) an affirmative determination of serious injury
or threat thereof under section 202(b)(1);
``(B) an affirmative determination of market
disruption or threat thereof under section 421(b)(1); or
``(C) an affirmative final determination of material
injury or threat thereof under section 705(b)(1)(A) or
735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C.
1671d(b)(1)(A) and 1673d(b)(1)(A));
``(2) <<NOTE: Time period. Notice. Federal
Register, publication.>> the petition is filed during the one-
year period beginning on the date on which--
``(A) a summary of the report submitted to the
President by the International Trade Commission under
section 202(f)(1) with respect to the affirmative
determination described in paragraph (1)(A) is published
in the Federal Register under section 202(f)(3); or
``(B) notice of an affirmative determination
described in subparagraph (B) or (C) of paragraph (1) is
published in the Federal Register; and
``(3) the workers have become totally or partially separated
from the workers' firm within--
``(A) the one-year period described in paragraph
(2); or
``(B) notwithstanding section 223(b), the one-year
period preceding the one-year period described in
paragraph (2).''.
[[Page 123 STAT. 372]]
SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.
Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
(1) in subsection (b), by striking ``or appropriate
subdivision of the firm before his application'' and all that
follows and inserting ``before the worker's application under
section 231 occurred more than one year before the date of the
petition on which such certification was granted.'';
(2) in subsection (c), by striking ``together with his
reasons'' and inserting ``and on the website of the Department
of Labor, together with the Secretary's reasons'';
(3) in subsection (d)--
(A) by striking ``or subdivision of the firm'' and
all that follows through ``he shall'' and inserting ``,
that total or partial separations from such firm are no
longer attributable to the conditions specified in
section 222, the Secretary shall''; and
(B) by striking ``together with his reasons'' and
inserting ``and on the website of the Department of
Labor, together with the Secretary's reasons''; and
(4) by adding at the end the following:
``(e) Standards for Investigations and Determinations.--
``(1) In general.--The Secretary <<NOTE: Criteria.>> shall
establish standards, including data requirements, for
investigations of petitions filed under section 221 and criteria
for making determinations under subsection (a).
``(2) Consultations.--Not less <<NOTE: Deadline.>> than 90
days before issuing a final rule with respect to the standards
required under paragraph (1), the Secretary shall consult with
the Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives with respect to such
rule.''.
SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.
(a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C.
2393) is amended--
(1) in the heading, by striking ``system'' and inserting
``and data collection'';
(2) in the first sentence--
(A) by striking ``The Secretary'' and inserting
``(a) Monitoring Programs.--The Secretary'';
(B) by inserting ``and services'' after ``imports of
articles'';
(C) by inserting ``and domestic supply of services''
after ``domestic production'';
(D) by inserting ``or supplying services'' after
``producing articles''; and
(E) by inserting ``, or supply of services,'' after
``changes in production''; and
(3) by adding at the end the following:
``(b) Collection of Data and Reports on Service Sector.--
``(1) Secretary of labor.--Not later <<NOTE: System.>> than
90 days after the date of the enactment of this subsection, the
Secretary of Labor shall implement a system to collect data on
adversely affected workers employed in the service sector that
includes the number of workers by State and industry, and by the
[[Page 123 STAT. 373]]
cause of the dislocation of each worker, as identified in the
certification.
``(2) <<NOTE: Study.>> Secretary of commerce.--Not later
than 1 year after such date of enactment, the Secretary of
Commerce shall, in consultation with the Secretary of Labor,
conduct a study and submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report on ways to improve the timeliness and
coverage of data on trade in services, including methods to
identify increased imports due to the relocation of United
States firms to foreign countries, and increased imports due to
United States firms acquiring services from firms in foreign
countries.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 282 and
inserting the following:
``Sec. 282. Trade monitoring and data collection.''.
(c) <<NOTE: 19 USC 2393 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
Subpart B--Industry Notifications Following Certain Affirmative
Determinations
SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.
(a) In General.--Section 224 of the Trade Act of 1974 (19 U.S.C.
2274) is amended--
(1) by amending the heading to read as follows:
``SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE
DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.'';
(2) in subsection (a), by striking ``Whenever'' and
inserting ``Study of Domestic Industry.--Whenever'';
(3) in subsection (b)--
(A) by striking ``The report'' and inserting
``Report by the Secretary.--The report''; and
(B) by inserting ``and on the website of the
Department of Labor'' after ``Federal Register''; and
(4) by adding at the end the following:
``(c) Notifications Following Affirmative Global Safeguard
Determinations.--Upon making an affirmative determination under section
202(b)(1), the Commission shall promptly notify the Secretary of Labor
and the Secretary of Commerce and, in the case of a determination with
respect to an agricultural commodity, the Secretary of Agriculture, of
the determination.
``(d) Notifications Following Affirmative Bilateral or Plurilateral
Safeguard Determinations.--
``(1) Notifications of determinations of market
disruption.--Upon making an affirmative determination under
section 421(b)(1), the Commission shall promptly notify the
Secretary of Labor and the Secretary of Commerce and, in the
case of a determination with respect to an agricultural
commodity, the Secretary of Agriculture, of the determination.
``(2) Notifications regarding trade agreement safeguards.--
Upon making an affirmative determination in a proceeding
initiated under an applicable safeguard provision (other than a
provision described in paragraph (3)) that is enacted
[[Page 123 STAT. 374]]
to implement a trade agreement to which the United States is a
party, the Commission shall promptly notify the Secretary of
Labor and the Secretary of Commerce and, in the case of a
determination with respect to an agricultural commodity, the
Secretary of Agriculture, of the determination.
``(3) Notifications regarding textile and apparel
safeguards.--Upon making an affirmative determination in a
proceeding initiated under any safeguard provision relating to
textile and apparel articles that is enacted to implement a
trade agreement to which the United States is a party, the
President shall promptly notify the Secretary of Labor and the
Secretary of Commerce of the determination.
``(e) Notifications Following Certain Affirmative Determinations
Under Title Vii of the Tariff Act of 1930.--Upon making an affirmative
determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff
Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the
Commission shall promptly notify the Secretary of Labor and the
Secretary of Commerce and, in the case of a determination with respect
to an agricultural commodity, the Secretary of Agriculture, of the
determination.
``(f) Industry Notification of Assistance.--Upon receiving a
notification of a determination under subsection (c), (d), or (e) with
respect to a domestic industry--
``(1) the Secretary of Labor shall--
``(A) notify the representatives of the domestic
industry affected by the determination, firms publicly
identified by name during the course of the proceeding
relating to the determination, and any certified or
recognized union or, to the extent practicable, other
duly authorized representative of workers employed by
such representatives of the domestic industry, of--
``(i) the allowances, training, employment
services, and other benefits available under this
chapter;
``(ii) the manner in which to file a petition
and apply for such benefits; and
``(iii) the availability of assistance in
filing such petitions;
``(B) notify the Governor of each State in which one
or more firms in the industry described in subparagraph
(A) are located of the Commission's determination and
the identity of the firms; and
``(C) upon request, provide any assistance that is
necessary to file a petition under section 221;
``(2) the Secretary of Commerce shall--
``(A) notify the representatives of the domestic
industry affected by the determination and any firms
publicly identified by name during the course of the
proceeding relating to the determination of--
``(i) the benefits available under chapter 3;
``(ii) the manner in which to file a petition
and apply for such benefits; and
``(iii) the availability of assistance in
filing such petitions; and
``(B) upon request, provide any assistance that is
necessary to file a petition under section 251; and
[[Page 123 STAT. 375]]
``(3) in the case of an affirmative determination based upon
imports of an agricultural commodity, the Secretary of
Agriculture shall--
``(A) notify representatives of the domestic
industry affected by the determination and any
agricultural commodity producers publicly identified by
name during the course of the proceeding relating to the
determination of--
``(i) the benefits available under chapter 6;
``(ii) the manner in which to file a petition
and apply for such benefits; and
``(iii) the availability of assistance in
filing such petitions; and
``(B) upon request, provide any assistance that is
necessary to file a petition under section 292.
``(g) Representatives of the Domestic Industry.--For purposes of
subsection (f), the term `representatives of the domestic industry'
means the persons that petitioned for relief in connection with--
``(1) a proceeding under section 202 or 421 of this Act;
``(2) a proceeding under section 702(b) or 732(b) of the
Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or
``(3) any safeguard investigation described in subsection
(d)(2) or (d)(3).''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 224 and
inserting the following:
``Sec. 224. Study and notifications regarding certain affirmative
determinations; industry notification of assistance.''.
SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.
Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by
adding at the end the following:
``(c) Upon issuing a certification under section 223, the Secretary
shall notify the Secretary of Commerce of the identity of each firm
covered by the certification.''.
Subpart C--Program Benefits
SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.
(a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act of 1974
(19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
(1) <<NOTE: Certification.>> by striking subclauses (I) and
(II) and inserting the following:
``(I) in the case of a worker whose most
recent total separation from adversely affected
employment that meets the requirements of
paragraphs (1) and (2) occurs after the date on
which the Secretary issues a certification
covering the worker, the last day of the 26th week
after such total separation,
``(II) in the case of a worker whose most
recent total separation from adversely affected
employment that meets the requirements of
paragraphs (1) and (2) occurs before the date on
which the Secretary issues a certification
covering the worker, the last day of the 26th week
after the date of such certification,'';
(2) in subclause (III)--
[[Page 123 STAT. 376]]
(A) by striking ``later of the dates specified in
subclause (I) or (II)'' and inserting ``date specified
in subclause (I) or (II), as the case may be''; and
(B) by striking ``or'' at the end;
(3) by redesignating subclause (IV) as subclause (V); and
(4) by inserting after subclause (III) the following:
``(IV) in the case of a worker who fails to
enroll by the date required by subclause (I),
(II), or (III), as the case may be, due to the
failure to provide the worker with timely
information regarding the date specified in such
subclause, the last day of a period determined by
the Secretary, or''.
(b) Waivers of Training Requirements.--Section 231(c) of the Trade
Act of 1974 (19 U.S.C. 2291(c)) is amended--
(1) in paragraph (1)(B)--
(A) by striking ``The worker possesses'' and
inserting the following:
``(i) In general.--The worker possesses''; and
(B) by adding at the end the following:
``(ii) Marketable skills defined.--For
purposes of clause (i), the term `marketable
skills' may include the possession of a
postgraduate degree from an institution of higher
education (as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) or an
equivalent institution, or the possession of an
equivalent postgraduate certification in a
specialized field.'';
(2) in paragraph (2)(A), by striking ``A waiver'' and
inserting ``Except as provided in paragraph (3)(B), a waiver'';
and
(3) in paragraph (3)--
(A) in subparagraph (A), by striking ``Pursuant to
an agreement under section 239, the Secretary may
authorize a'' and inserting ``An agreement under section
239 shall authorize a'';
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following:
``(B) Review of waivers.--An
agreement <<NOTE: Deadlines.>> under section 239 shall
require a cooperating State to review each waiver issued
by the State under subparagraph (A), (B), (D), (E), or
(F) of paragraph (1)--
``(i) 3 months after the date on which the
State issues the waiver; and
``(ii) on a monthly basis thereafter.''.
(c) Conforming Amendments.--
(1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291),
as amended, is further amended--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``more than 60 days'' and all
that follows through ``section 221'' and inserting ``on
or after the date of such certification''; and
(B) in subsection (b)--
(i) by striking paragraph (2); and
(ii) in paragraph (1)--
(I) by striking ``(1)'';
(II) by redesignating subparagraphs
(A) and (B) as paragraphs (1) and (2),
respectively;
[[Page 123 STAT. 377]]
(III) by redesignating clauses (i)
and (ii) as subparagraphs (A) and (B),
respectively; and
(IV) by redesignating subclauses (I)
and (II) as clauses (i) and (ii),
respectively.
(2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively.
SEC. 1822. WEEKLY AMOUNTS.
Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended--
(1) in subsection (a)--
(A) by striking ``subsections (b) and (c)'' and
inserting ``subsections (b), (c), and (d)'';
(B) by striking ``total unemployment'' the first
place it appears and inserting ``unemployment''; and
(C) in paragraph (2), by inserting before the period
the following: ``, except that in the case of an
adversely affected worker who is participating in
training under this chapter, such income shall not
include earnings from work for such week that are equal
to or less than the most recent weekly benefit amount of
the unemployment insurance payable to the worker for a
week of total unemployment preceding the worker's first
exhaustion of unemployment insurance (as determined for
purposes of section 231(a)(3)(B))''; and
(2) by adding at the end the following:
``(d) Election of Trade Readjustment Allowance or Unemployment
Insurance.--Notwithstanding section 231(a)(3)(B), an adversely affected
worker may elect to receive a trade readjustment allowance instead of
unemployment insurance during any week with respect to which the
worker--
``(1) is entitled to receive unemployment insurance as a
result of the establishment by the worker of a new benefit year
under State law, based in whole or in part upon part-time or
short-term employment in which the worker engaged after the
worker's most recent total separation from adversely affected
employment; and
``(2) is otherwise entitled to a trade readjustment
allowance.''.
SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR
EXTENDED TRAINING AND BREAKS IN TRAINING.
Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is
amended--
(1) in paragraph (2), by inserting ``under paragraph (1)''
after ``trade readjustment allowance''; and
(2) in paragraph (3)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``training approved for him''
and inserting ``a training program approved for
the worker'';
(ii) by striking ``52 additional weeks'' and
inserting ``78 additional weeks''; and
(iii) by striking ``52-week'' and inserting
``91-week''; and
[[Page 123 STAT. 378]]
(B) in the matter following subparagraph (B), by
striking ``52-week'' and inserting ``91-week''.
SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended,
is further amended by adding at the end the following:
``(g) Special Rule for Calculating Separation.--Notwithstanding any
other provision of this chapter, any period during which a judicial or
administrative appeal is pending with respect to the denial by the
Secretary of a petition under section 223 shall not be counted for
purposes of calculating the period of separation under subsection
(a)(2).
``(h) Special Rule for Justifiable Cause.--If the Secretary
determines that there is justifiable cause, the Secretary may extend the
period during which trade readjustment allowances are payable to an
adversely affected worker under paragraphs (2) and (3) of subsection (a)
(but not the maximum amounts of such allowances that are payable under
this section).
``(i) Special Rule With Respect to Military Service.--
``(1) In general.--Notwithstanding any <<NOTE: Waiver
authority.>> other provision of this chapter, the Secretary may
waive any requirement of this chapter that the Secretary
determines is necessary to ensure that an adversely affected
worker who is a member of a reserve component of the Armed
Forces and serves a period of duty described in paragraph (2) is
eligible to receive a trade readjustment allowance, training,
and other benefits under this chapter in the same manner and to
the same extent as if the worker had not served the period of
duty.
``(2) Period of duty described.--An adversely affected
worker serves a period of duty described in this paragraph if,
before completing training under section 236, the worker--
``(A) serves on active duty for a period of more
than 30 days under a call or order to active duty of
more than 30 days; or
``(B) in the case of a member of the Army National
Guard of the United States or Air National Guard of the
United States, performs full-time National Guard duty
under section 502(f) of title 32, United States Code,
for 30 consecutive days or more when authorized by the
President or the Secretary of Defense for the purpose of
responding to a national emergency declared by the
President and supported by Federal funds.''.
SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR
WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.
Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
(1) by striking ``Except where inconsistent'' and inserting
``(a) In General.--Except where inconsistent''; and
(2) by adding at the end the following:
``(b) Special Rule With Respect to State Laws and Regulations on
Good Cause for Waiver of Time Limits or Late Filing of Claims.--Any
law, <<NOTE: Applicability.>> regulation, policy, or practice of a
cooperating State that allows for a waiver for good cause of any time
limitation relating to the administration of the State unemployment
insurance law shall, in the administration of the program under this
chapter
[[Page 123 STAT. 379]]
by the State, apply to any time limitation with respect to an
application for a trade readjustment allowance or enrollment in training
under this chapter.''.
SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.
(a) In General.--Section 235 of the Trade Act of 1974 (19 U.S.C.
2295) is amended to read as follows:
``SEC. 235. <<NOTE: Contracts.>> EMPLOYMENT AND CASE MANAGEMENT
SERVICES.
``The Secretary shall make available, directly or through agreements
with States under section 239, to adversely affected workers and
adversely affected incumbent workers covered by a certification under
subchapter A of this chapter the following employment and case
management services:
``(1) Comprehensive and specialized assessment of skill
levels and service needs, including through--
``(A) diagnostic testing and use of other assessment
tools; and
``(B) in-depth interviewing and evaluation to
identify employment barriers and appropriate employment
goals.
``(2) Development of an individual employment plan to
identify employment goals and objectives, and appropriate
training to achieve those goals and objectives.
``(3) Information on training available in local and
regional areas, information on individual counseling to
determine which training is suitable training, and information
on how to apply for such training.
``(4) Information on how to apply for financial aid,
including referring workers to educational opportunity centers
described in section 402F of the Higher Education Act of 1965
(20 U.S.C. 1070a-16), where applicable, and notifying workers
that the workers may request financial aid administrators at
institutions of higher education (as defined in section 102 of
such Act (20 U.S.C. 1002)) to use the administrators' discretion
under section 479A of such Act (20 U.S.C. 1087tt) to use current
year income data, rather than preceding year income data, for
determining the amount of need of the workers for Federal
financial assistance under title IV of such Act (20 U.S.C. 1070
et seq.).
``(5) Short-term prevocational services, including
development of learning skills, communications skills,
interviewing skills, punctuality, personal maintenance skills,
and professional conduct to prepare individuals for employment
or training.
``(6) Individual career counseling, including job search and
placement counseling, during the period in which the individual
is receiving a trade adjustment allowance or training under this
chapter, and after receiving such training for purposes of job
placement.
``(7) Provision of employment statistics information,
including the provision of accurate information relating to
local, regional, and national labor market areas, including--
``(A) job vacancy listings in such labor market
areas;
``(B) information on jobs skills necessary to obtain
jobs identified in job vacancy listings described in
subparagraph (A);
[[Page 123 STAT. 380]]
``(C) information relating to local occupations that
are in demand and earnings potential of such
occupations; and
``(D) skills requirements for local occupations
described in subparagraph (C).
``(8) Information relating to the availability of supportive
services, including services relating to child care,
transportation, dependent care, housing assistance, and need-
related payments that are necessary to enable an individual to
participate in training.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 235 and
inserting the following:
``235. Employment and case management services.''.
SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT
SERVICES.
(a) In General.--Part II of subchapter B of chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by inserting
after section 235 the following:
``SEC. 235A. <<NOTE: 19 USC 2295a.>> FUNDING FOR ADMINISTRATIVE
EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES.
``(a) Funding for Administrative Expenses and Employment and Case
Management Services.--
``(1) In general.--In addition to any funds made available
to a State to carry out section 236 for a fiscal year, the State
shall receive for the fiscal year a payment in an amount that is
equal to 15 percent of the amount of such funds.
``(2) Use of funds.--A State that receives a payment under
paragraph (1) shall--
``(A) use not more than \2/3\ of such payment for
the administration of the trade adjustment assistance
for workers program under this chapter, including for--
``(i) processing waivers of training
requirements under section 231;
``(ii) collecting, validating, and reporting
data required under this chapter; and
``(iii) providing reemployment trade
adjustment assistance under section 246; and
``(B) use not less than \1/3\ of such payment for
employment and case management services under section
235.
``(b) Additional Funding for Employment and Case Management
Services.--
``(1) In general.--In addition to any funds made available
to a State to carry out section 236 and the payment under
subsection (a)(1) for a fiscal year, the Secretary shall provide
to the State for the fiscal year a payment in the amount of
$350,000.
``(2) Use of funds.--A State that receives a payment under
paragraph (1) shall use such payment for the purpose of
providing employment and case management services under section
235.
``(3) Voluntary return of funds.--A State that receives a
payment under paragraph (1) may decline or otherwise return such
payment to the Secretary.''.
[[Page 123 STAT. 381]]
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 235 the
following:
``Sec. 235A. Funding for administrative expenses and employment and case
management services.''.
(c) <<NOTE: 19 USC 2295a note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 1828. TRAINING FUNDING.
(a) In General.--Section 236(a)(2) of the Trade Act of 1974 (19
U.S.C. 2296(a)(2)) is amended to read as follows:
``(2)(A) The total amount of payments that may be made under
paragraph (1) shall not exceed--
``(i) for each of the fiscal years 2009 and 2010,
$575,000,000; and
``(ii) <<NOTE: Time period.>> for the period beginning
October 1, 2010, and ending December 31, 2010, $143,750,000.
``(B)(i) The Secretary shall, as soon as practicable after the
beginning of each fiscal year, make an initial distribution of the funds
made available to carry out this section, in accordance with the
requirements of subparagraph (C).
``(ii) <<NOTE: Deadline.>> The Secretary shall ensure that not less
than 90 percent of the funds made available to carry out this section
for a fiscal year are distributed to the States by not later than July
15 of that fiscal year.
``(C)(i) In making the initial distribution of funds pursuant to
subparagraph (B)(i) for a fiscal year, the Secretary shall hold in
reserve 35 percent of the funds made available to carry out this section
for that fiscal year for additional distributions during the remainder
of the fiscal year.
``(ii) Subject to clause (iii), in determining how to apportion the
initial distribution of funds pursuant to subparagraph (B)(i) in a
fiscal year, the Secretary shall take into account, with respect to each
State--
``(I) the trend in the number of workers covered by
certifications of eligibility under this chapter during the most
recent 4 consecutive calendar quarters for which data are
available;
``(II) the trend in the number of workers participating in
training under this section during the most recent 4 consecutive
calendar quarters for which data are available;
``(III) the number of workers estimated to be participating
in training under this section during the fiscal year;
``(IV) the amount of funding estimated to be necessary to
provide training approved under this section to such workers
during the fiscal year; and
``(V) such other factors as the Secretary considers
appropriate relating to the provision of training under this
section.
``(iii) In no case may the amount of the initial distribution to a
State pursuant to subparagraph (B)(i) in a fiscal year be less than 25
percent of the initial distribution to the State in the preceding fiscal
year.
``(D) <<NOTE: Procedures.>> The Secretary shall establish
procedures for the distribution of the funds that remain available for
the fiscal year after the initial distribution required under
subparagraph (B)(i). Such procedures may include the distribution of
funds pursuant to requests submitted by States in need of such funds.
[[Page 123 STAT. 382]]
``(E) If, during a fiscal year, the Secretary estimates that the
amount of funds necessary to pay the costs of training approved under
this section will exceed the dollar amount limitation specified in
subparagraph (A), the Secretary shall decide how the amount of funds
made available to carry out this section that have not been distributed
at the time of the estimate will be apportioned among the States for the
remainder of the fiscal year.''.
(b) Determinations Regarding Training.--Section 236(a)(9) of the
Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
(1) by striking ``The Secretary'' and inserting ``(A)
Subject to subparagraph (B), the Secretary''; and
(2) by adding at the end the following:
``(B)(i) In determining under paragraph (1)(E) whether a worker is
qualified to undertake and complete training, the Secretary may approve
training for a period longer than the worker's period of eligibility for
trade readjustment allowances under part I if the worker demonstrates a
financial ability to complete the training after the expiration of the
worker's period of eligibility for such trade readjustment allowances.
``(ii) In determining the reasonable cost of training under
paragraph (1)(F) with respect to a worker, the Secretary may consider
whether other public or private funds are reasonably available to the
worker, except that the Secretary may not require a worker to obtain
such funds as a condition of approval of training under paragraph
(1).''.
(c) Regulations.--Section 236 of the Trade Act of 1974 (19 U.S.C.
2296) is amended by adding at the end the following:
``(g) <<NOTE: Deadlines.>> Regulations With Respect to
Apportionment of Training Funds to States.--
``(1) In general.--Not later than 1 year after the date of
the enactment of this subsection, the Secretary shall issue such
regulations as may be necessary to carry out the provisions of
subsection (a)(2).
``(2) Consultations.--The Secretary shall consult with the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives not less than 90 days
before issuing any regulation pursuant to paragraph (1).''.
(d) <<NOTE: 19 USC 2296 note.>> Effective Date.--This section and
the amendments made by this section shall take effect upon the
expiration of the 90-day period beginning on the date of the enactment
of this Act, except that--
(1) subparagraph (A) of section 236(a)(2) of the Trade Act
of 1974, as amended by subsection (a) of this section, shall
take effect on the date of the enactment of this Act; and
(2) subparagraphs (B), (C), and (D) of such section
236(a)(2) shall take effect on October 1, 2009.
SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.
(a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19
U.S.C. 2296(a)(5)) is amended--
(1) in subparagraph (A)--
(A) by striking ``and'' at the end of clause (i);
(B) by adding ``and'' at the end of clause (ii); and
(C) by inserting after clause (ii) the following:
[[Page 123 STAT. 383]]
``(iii) apprenticeship programs registered under the
Act of August 16, 1937 (commonly known as the `National
Apprenticeship Act'; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.),'';
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively;
(3) by inserting after subparagraph (D) the following:
``(E) any program of prerequisite education or coursework
required to enroll in training that may be approved under this
section,'';
(4) in subparagraph (F)(ii), as redesignated by paragraph
(2), by striking ``and'' at the end;
(5) in subparagraph (G), as redesignated by paragraph (2),
by striking the period at the end and inserting ``, and''; and
(6) by adding at the end the following:
``(H) any training program or coursework at an accredited
institution of higher education (described in section 102 of the
Higher Education Act of 1965 (20 U.S.C. 1002)), including a
training program or coursework for the purpose of--
``(i) obtaining a degree or certification; or
``(ii) completing a degree or certification that the
worker had previously begun at an accredited institution
of higher education.
The Secretary may not limit approval of a training program under
paragraph (1) to a program provided pursuant to title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.).''.
(b) Conforming Amendments.--Section 233 of the Trade Act of 1974 (19
U.S.C. 2293) is amended--
(1) in subsection (a)(2), by inserting ``prerequisite
education or'' after ``requires a program of''; and
(2) in subsection (f) (as redesignated by section 1821(c) of
this subtitle), by inserting ``prerequisite education or'' after
``includes a program of''.
(c) Technical Corrections.--Section 236 of the Trade Act of 1974 (19
U.S.C. 2296) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the flush text, by striking
``his behalf'' and inserting ``the worker's behalf'';
and
(B) in paragraph (3), by striking ``this paragraph
(1)'' and inserting ``paragraph (1)''; and
(2) in subsection (b)(2), by striking ``, and'' and
inserting a period.
SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING.
(a) Pre-Layoff Training.--
(1) In general.--Section 236(a) of the Trade Act of 1974 (19
U.S.C. 2296(a)) is amended--
(A) in paragraph (1), by inserting after
``determines'' the following: ``, with respect to an
adversely affected worker or an adversely affected
incumbent worker,'';
(B) in paragraph (4)--
(i) in subparagraphs (A) and (B), by inserting
``or an adversely affected incumbent worker''
after ``an adversely affected worker'' each place
it appears; and
[[Page 123 STAT. 384]]
(ii) in subparagraph (C), by inserting ``or
adversely affected incumbent worker'' after
``adversely affected worker'' each place it
appears;
(C) in paragraph (5), in the matter preceding
subparagraph (A), by striking ``The training programs''
and inserting ``Except as provided in paragraph (10),
the training programs'';
(D) in paragraph (6)(B), by inserting ``or adversely
affected incumbent worker'' after ``adversely affected
worker'';
(E) in paragraph (7)(B), by inserting ``or adversely
affected incumbent worker'' after ``adversely affected
worker''; and
(F) by inserting after paragraph (9) the following:
``(10) In the case of an adversely affected incumbent worker, the
Secretary may not approve--
``(A) on-the-job training under paragraph (5)(A)(i); or
``(B) customized training under paragraph (5)(A)(ii), unless
such training is for a position other than the worker's
adversely affected employment.
``(11) If the Secretary determines that an adversely affected
incumbent worker for whom the Secretary approved training under this
section is no longer threatened with a total or partial separation, the
Secretary shall terminate the approval of such training.''.
(2) Definitions.--Section 247 of the Trade Act of 1974 (19
U.S.C. 2319), as amended, is further amended by adding at the
end the following:
``(19) The term `adversely affected incumbent worker' means
a worker who--
``(A) is a member of a group of workers who have
been certified as eligible to apply for adjustment
assistance under subchapter A;
``(B) has not been totally or partially separated
from adversely affected employment; and
``(C) the Secretary determines, on an individual
basis, is threatened with total or partial
separation.''.
(b) Part-Time Training.--Section 236 of the Trade Act of 1974 (19
U.S.C. 2296), as amended, is further amended by adding at the end the
following:
``(h) Part-Time Training.--
``(1) In general.--The Secretary may approve full-time or
part-time training for a worker under subsection (a).
``(2) Limitation.--Notwithstanding paragraph (1), a worker
participating in part-time training approved under subsection
(a) may not receive a trade readjustment allowance under section
231.''.
SEC. 1831. ON-THE-JOB TRAINING.
(a) In General.--Section 236(c) of the Trade Act of 1974 (19 U.S.C.
2296(c)) is amended--
(1) by redesignating paragraphs (1) through (10) as
subparagraphs (A) through (J) and moving such subparagraphs 2
ems to the right;
(2) by striking ``(c) The Secretary shall'' and all that
follows through ``such costs,'' and inserting the following:
``(c) On-the-Job Training Requirements.--
[[Page 123 STAT. 385]]
``(1) In general.--The Secretary may approve on-the-job
training for any adversely affected worker if--
``(A) the worker meets the requirements for training
to be approved under subsection (a)(1);
``(B) the Secretary determines that on-the-job
training--
``(i) can reasonably be expected to lead to
suitable employment with the employer offering the
on-the-job training;
``(ii) is compatible with the skills of the
worker;
``(iii) includes a curriculum through which
the worker will gain the knowledge or skills to
become proficient in the job for which the worker
is being trained; and
``(iv) can be measured by benchmarks that
indicate that the worker is gaining such knowledge
or skills; and
``(C) the State determines that the on-the-job
training program meets the requirements of clauses (iii)
and (iv) of subparagraph (B).
``(2) Monthly payments.--The Secretary shall pay the costs
of on-the-job training approved under paragraph (1) in monthly
installments.
``(3) Contracts for on-the-job training.--
``(A) In general.--The Secretary shall ensure, in
entering into a contract with an employer to provide on-
the-job training to a worker under this subsection, that
the skill requirements of the job for which the worker
is being trained, the academic and occupational skill
level of the worker, and the work experience of the
worker are taken into consideration.
``(B) Term of contract.--Training under any such
contract shall be limited to the period of time required
for the worker receiving on-the-job training to become
proficient in the job for which the worker is being
trained, but may not exceed 104 weeks in any case.
``(4) Exclusion of certain employers.--The Secretary shall
not enter into a contract for on-the-job training with an
employer that exhibits a pattern of failing to provide workers
receiving on-the-job training from the employer with--
``(A) continued, long-term employment as regular
employees; and
``(B) wages, benefits, and working conditions that
are equivalent to the wages, benefits, and working
conditions provided to regular employees who have worked
a similar period of time and are doing the same type of
work as workers receiving on-the-job training from the
employer.
``(5) Labor standards.--The Secretary may pay the costs of
on-the-job training,''; and
(3) in paragraph (5), as redesignated--
(A) in subparagraph (I), as redesignated by
paragraph (1) of this section, by striking ``paragraphs
(1), (2), (3), (4), (5), and (6)'' and inserting
``subparagraphs (A), (B), (C), (D), (E), and (F)''; and
(B) in subparagraph (J), as redesignated by
paragraph (1) of this section, by striking ``paragraph
(8)'' and inserting ``subparagraph (H)''.
[[Page 123 STAT. 386]]
(b) Repeal of Preference for Training on the Job.--Section 236(a)(1)
of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking
the last sentence.
SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS
WHILE IN TRAINING.
Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is
amended to read as follows:
``(d) Eligibility.--An adversely affected worker may not be
determined to be ineligible or disqualified for unemployment insurance
or program benefits under this subchapter--
``(1) because the worker--
``(A) is enrolled in training approved under
subsection (a);
``(B) left work--
``(i) that was not suitable employment in
order to enroll in such training; or
``(ii) that the worker engaged in on a
temporary basis during a break in such training or
a delay in the commencement of such training; or
``(C) <<NOTE: Deadline.>> left on-the-job training
not later than 30 days after commencing such training
because the training did not meet the requirements of
subsection (c)(1)(B); or
``(2) because of the application to any such week in
training of the provisions of State law or Federal unemployment
insurance law relating to availability for work, active search
for work, or refusal to accept work.''.
SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.
(a) Job Search Allowances.--Section 237 of the Trade Act of 1974 (19
U.S.C. 2297) is amended--
(1) in subsection (a)(2)(C)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``90 percent of
the cost of'' and inserting ``all''; and
(B) in paragraph (2), by striking ``$1,250'' and
inserting ``$1,500''.
(b) Relocation Allowances.--Section 238 of the Trade Act of 1974 (19
U.S.C. 2298) is amended--
(1) in subsection (a)(2)(E)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``90 percent of
the'' and inserting ``all''; and
(B) in paragraph (2), by striking ``$1,250'' and
inserting ``$1,500''.
Subpart D--Reemployment Trade Adjustment Assistance Program
SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.
(a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C.
2318) is amended--
(1) by amending the heading to read as follows:
[[Page 123 STAT. 387]]
``SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.'';
(2) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``Not later than'' and all
that follows through ``2002, the Secretary'' and
inserting ``The Secretary''; and
(ii) by striking ``an alternative trade
adjustment assistance program for older workers''
and inserting ``a reemployment trade adjustment
assistance program'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``for a period not to
exceed 2 years'' and inserting ``for the
eligibility period under subparagraph
(A) or (B) of paragraph (4) (as the case
may be)''; and
(II) by striking clauses (i) and
(ii) and inserting the following:
``(i) the wages received by the worker at the
time of separation; and
``(ii) the wages received by the worker from
reemployment.'';
(ii) in subparagraph (B)--
(I) by striking ``for a period not
to exceed 2 years'' and inserting ``for
the eligibility period under
subparagraph (A) or (B) of paragraph (4)
(as the case may be)''; and
(II) by striking ``, as added by
section 201 of the Trade Act of 2002'';
and
(iii) by adding at the end the following:
``(C) Training and other services.--A worker
described in paragraph (3)(B) participating in the
program established under paragraph (1) is eligible to
receive training approved under section 236 and
employment and case management services under section
235.''; and
(C) by striking paragraphs (3) through (5) and
inserting the following:
``(3) Eligibility.--
``(A) In general.--A group of workers certified
under subchapter A as eligible for adjustment assistance
under subchapter A is eligible for benefits described in
paragraph (2) under the program established under
paragraph (1).
``(B) Individual eligibility.--A worker in a group
of workers described in subparagraph (A) may elect to
receive benefits described in paragraph (2) under the
program established under paragraph (1) if the worker--
``(i) is at least 50 years of age;
``(ii) earns not more than $55,000 each year
in wages from reemployment;
``(iii)(I) is employed on a full-time basis as
defined by the law of the State in which the
worker is employed and is not enrolled in a
training program approved under section 236; or
[[Page 123 STAT. 388]]
``(II) is employed at least 20 hours per week
and is enrolled in a training program approved
under section 236; and
``(iv) is not employed at the firm from which
the worker was separated.
``(4) Eligibility period for payments.--
``(A) Worker who has not received trade readjustment
allowance.--In the <<NOTE: Effective date.>> case of a
worker described in paragraph (3)(B) who has not
received a trade readjustment allowance under part I of
subchapter B pursuant to the certification described in
paragraph (3)(A), the worker may receive benefits
described in paragraph (2) for a period not to exceed 2
years beginning on the earlier of--
``(i) the date on which the worker exhausts
all rights to unemployment insurance based on the
separation of the worker from the adversely
affected employment that is the basis of the
certification; or
``(ii) the date on which the worker obtains
reemployment described in paragraph (3)(B).
``(B) Worker who has received trade readjustment
allowance.--In the case of a worker described in
paragraph (3)(B) who has received a trade readjustment
allowance under part I of subchapter B pursuant to the
certification described in paragraph (3)(A), the worker
may receive benefits described in paragraph (2) for a
period of 104 weeks beginning on the date on which the
worker obtains reemployment described in paragraph
(3)(B), reduced by the total number of weeks for which
the worker received such trade readjustment allowance.
``(5) Total amount of payments.--
``(A) In general.--The payments described in
paragraph (2)(A) made to a worker may not exceed--
``(i) $12,000 per worker during the
eligibility period under paragraph (4)(A); or
``(ii) the amount described in subparagraph
(B) per worker during the eligibility period under
paragraph (4)(B).
``(B) Amount described.--The amount described in
this subparagraph is the amount equal to the product
of--
``(i) $12,000, and
``(ii) the ratio of--
``(I) the total number of weeks in
the eligibility period under paragraph
(4)(B) with respect to the worker, to
``(II) 104 weeks.
``(6) Calculation of amount of payments for certain
workers.--
``(A) In general.--In the <<NOTE: Applicability.>>
case of a worker described in paragraph (3)(B)(iii)(II),
paragraph (2)(A) shall be applied by substituting the
percentage described in subparagraph (B) for `50
percent'.
``(B) Percentage described.--The percentage
described in this subparagraph is the percentage--
``(i) equal to \1/2\ of the ratio of--
[[Page 123 STAT. 389]]
``(I) the number of weekly hours of
employment of the worker referred to in
paragraph (3)(B)(iii)(II), to
``(II) the number of weekly hours of
employment of the worker at the time of
separation, but
``(ii) in no case more than 50 percent.
``(7) Limitation on other benefits.--A worker described in
paragraph (3)(B) may not receive a trade readjustment allowance
under part I of subchapter B pursuant to the certification
described in paragraph (3)(A) during any week for which the
worker receives a payment described in paragraph (2)(A).''; and
(3) in subsection (b)(2), by striking ``subsection
(a)(3)(B)'' and inserting ``subsection (a)(3)''.
(b) Extension of Program.--Section 246(b)(1) of the Trade Act of
1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the date that is 5
years'' and all that follows through the end period and inserting
``December 31, 2010.''.
(c) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 246 and
inserting the following:
``Sec. 246. Reemployment trade adjustment assistance program.''.
Subpart E--Other Matters
SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.
(a) In General.--Subchapter C of chapter 2 of title II of the Trade
Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end the
following:
``SEC. 249A. <<NOTE: 19 USC 2322.>> OFFICE OF TRADE ADJUSTMENT
ASSISTANCE.
``(a) Establishment.--There is established in the Department of
Labor an office to be known as the Office of Trade Adjustment Assistance
(in this section referred to as the `Office').
``(b) Head of Office.--The head of the Office shall be an
administrator, who shall report directly to the Deputy Assistant
Secretary for Employment and Training.
``(c) Principal Functions.--The principal functions of the
administrator of the Office shall be--
``(1) to oversee and implement the administration of trade
adjustment assistance program under this chapter; and
``(2) to carry out functions delegated to the Secretary of
Labor under this chapter, including--
``(A) making determinations under section 223;
``(B) providing information under section 225 about
trade adjustment assistance to workers and assisting
such workers to prepare petitions or applications for
program benefits;
``(C) providing assistance to employers of groups of
workers that have filed petitions under section 221 in
submitting information required by the Secretary
relating to the petitions;
``(D) ensuring workers covered by a certification of
eligibility under subchapter A receive the employment
and case management services described in section 235;
[[Page 123 STAT. 390]]
``(E) ensuring that States fully comply with
agreements entered into under section 239;
``(F) advocating for workers applying for benefits
available under this chapter;
``(G) establishing and overseeing a hotline that
workers, employers, and other entities may call to
obtain information regarding eligibility criteria,
procedural requirements, and benefits available under
this chapter; and
``(H) carrying out such other duties with respect to
this chapter as the Secretary specifies for purposes of
this section.
``(d) Administration.--
``(1) Designation.--The administrator shall designate an
employee of the Department of Labor with appropriate experience
and expertise to carry out the duties described in paragraph
(2).
``(2) Duties.--The employee designated under paragraph (1)
shall--
``(A) receive complaints and requests for assistance
related to the trade adjustment assistance program under
this chapter;
``(B) resolve such complaints and requests for
assistance, in coordination with other employees of the
Office;
``(C) compile basic information concerning such
complaints and requests for assistance; and
``(D) carry out such other duties with respect to
this chapter as the Secretary specifies for purposes of
this section.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 249 the
following:
``Sec. 249A. Office of Trade Adjustment Assistance.''.
SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION
OF PROGRAM DATA; AGREEMENTS WITH STATES.
(a) In General.--Section 239(a) of the Trade Act of 1974 (19 U.S.C.
2311(a)) is amended--
(1) by amending clause (2) to read as follows: ``(2) in
accordance with subsection (f), shall make available to
adversely affected workers and adversely affected incumbent
workers covered by a certification under subchapter A the
employment and case management services described in section
235,''; and
(2) by striking ``will'' each place it appears and inserting
``shall''.
(b) Form and Manner of Data.--Section 239 of the Trade Act of 1974
(19 U.S.C. 2311) is amended--
(1) by redesignating subsections (c) through (g) as
subsections (d) through (h), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Form and Manner of Data.--Each agreement under this subchapter
shall--
``(1) provide the Secretary with the authority to collect
any data the Secretary determines necessary to meet the
requirements of this chapter; and
``(2) specify the form and manner in which any such data
requested by the Secretary shall be reported.''.
[[Page 123 STAT. 391]]
(c) State Activities.--Section 239(g) of the Trade Act of 1974 (as
redesignated) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) by amending paragraph (4) to read as follows:
``(4) perform outreach to, intake of, and orientation for
adversely affected workers and adversely affected incumbent
workers covered by a certification under subchapter A with
respect to assistance and benefits available under this chapter,
and''; and
(3) by adding at the end the following:
``(5) make employment and case management services described
in section 235 available to adversely affected workers and
adversely affected incumbent workers covered by a certification
under subchapter A and, if funds provided to carry out this
chapter are insufficient to make such services available, make
arrangements to make such services available through other
Federal programs.''.
(d) Reporting Requirement.--Section 239(h) of the Trade Act of 1974
(as redesignated) is amended by striking ``1998.'' and inserting ``1998
(29 U.S.C. 2822(b)) and a description of the State's rapid response
activities under section 221(a)(2)(A).''.
(e) Control Measures.--Section 239 of the Trade Act of 1974 (19
U.S.C. 2311), as amended, is further amended by adding at the end the
following:
``(i) Control Measures.--
``(1) In general.--The Secretary <<NOTE: Requirements.>>
shall require each cooperating State and cooperating State
agency to implement effective control measures and to
effectively oversee the operation and administration of the
trade adjustment assistance program under this chapter,
including by means of monitoring the operation of control
measures to improve the accuracy and timeliness of the data
being collected and reported.
``(2) Definition.--For purposes of paragraph (1), the term
`control measures' means measures that--
``(A) are internal to a system used by a State to
collect data; and
``(B) are designed to ensure the accuracy and
verifiability of such data.
``(j) Data Reporting.--
``(1) In general.--Any agreement entered into under this
section shall require the cooperating State or cooperating State
agency to report to the Secretary on a quarterly basis
comprehensive performance accountability data, to consist of--
``(A) the core indicators of performance described
in paragraph (2)(A);
``(B) the additional indicators of performance
described in paragraph (2)(B), if any; and
``(C) a description of efforts made to improve
outcomes for workers under the trade adjustment
assistance program.
``(2) Core indicators described.--
``(A) In general.--The core indicators of
performance described in this paragraph are--
``(i) the percentage of workers receiving
benefits under this chapter who are employed
during the second calendar quarter following the
calendar quarter in which the workers cease
receiving such benefits;
[[Page 123 STAT. 392]]
``(ii) the percentage of such workers who are
employed in each of the third and fourth calendar
quarters following the calendar quarter in which
the workers cease receiving such benefits; and
``(iii) the earnings of such workers in each
of the third and fourth calendar quarters
following the calendar quarter in which the
workers cease receiving such benefits.
``(B) Additional indicators.--The Secretary and a
cooperating State or cooperating State agency may agree
upon additional indicators of performance for the trade
adjustment assistance program under this chapter, as
appropriate.
``(3) Standards with respect to reliability of data.--In
preparing <<NOTE: Procedures.>> the quarterly report required
by paragraph (1), each cooperating State or cooperating State
agency shall establish procedures that are consistent with
guidelines to be issued by the Secretary to ensure that the data
reported are valid and reliable.''.
SEC. 1853. <<NOTE: Immigration.>> VERIFICATION OF ELIGIBILITY FOR
PROGRAM BENEFITS.
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended,
is further amended by adding at the end the following:
``(k) Verification of Eligibility for Program Benefits.--
``(1) In general.--An agreement under this subchapter shall
provide that the State shall periodically redetermine that a
worker receiving benefits under this subchapter who is not a
citizen or national of the United States remains in a
satisfactory immigration status. Once satisfactory immigration
status has been initially verified through the immigration
status verification system described in section 1137(d) of the
Social Security Act (42 U.S.C. 1320b-7(d)) for purposes of
establishing a worker's eligibility for unemployment
compensation, the State shall reverify the worker's immigration
status if the documentation provided during initial verification
will expire during the period in which that worker is
potentially eligible to receive benefits under this subchapter.
The State shall conduct such redetermination in a timely manner,
utilizing the immigration status verification system described
in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-
7(d)).
``(2) Procedures.--The Secretary shall establish procedures
to ensure the uniform application by the States of the
requirements of this subsection.''.
SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.
(a) In General.--Subchapter C of chapter 2 of title II of the Trade
Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by
adding at the end the following:
``SEC. 249B. <<NOTE: 19 USC 2323.>> COLLECTION AND PUBLICATION OF DATA
AND REPORTS; INFORMATION TO WORKERS.
``(a) In General.--Not later <<NOTE: System.>> than 180 days after
the date of the enactment of this section, the Secretary shall implement
a system to collect and report the data described in subsection (b), as
well as any other information that the Secretary considers appropriate
to effectively carry out this chapter.
[[Page 123 STAT. 393]]
``(b) Data to Be Included.--The system required under subsection (a)
shall include collection of and reporting on the following data for each
fiscal year:
``(1) Data on petitions filed, certified, and denied.--
``(A) The number of petitions filed, certified, and
denied under this chapter.
``(B) The number of workers covered by petitions
filed, certified, and denied.
``(C) The number of petitions, classified by--
``(i) the basis for certification, including
increased imports, shifts in production, and other
bases of eligibility; and
``(ii) congressional district of the United
States.
``(D) The average time for processing such
petitions.
``(2) Data on benefits received.--
``(A) The number of workers receiving benefits under
this chapter.
``(B) The number of workers receiving each type of
benefit, including training, trade readjustment
allowances, employment and case management services, and
relocation and job search allowances, and, to the extent
feasible, credits for health insurance costs under
section 35 of the Internal Revenue Code of 1986.
``(C) The average time during which such workers
receive each such type of benefit.
``(3) Data on training.--
``(A) The number of workers enrolled in training
approved under section 236, classified by major types of
training, including classroom training, training through
distance learning, on-the-job training, and customized
training.
``(B) The number of workers enrolled in full-time
training and part-time training.
``(C) The average duration of training.
``(D) The number of training waivers granted under
section 231(c), classified by type of waiver.
``(E) The number of workers who complete training
and the duration of such training.
``(F) The number of workers who do not complete
training.
``(4) Data on outcomes.--
``(A) A summary of the quarterly reports required
under section 239(j).
``(B) The sectors in which workers are employed
after receiving benefits under this chapter.
``(5) Data on rapid response activities.--Whether rapid
response activities were provided with respect to each petition
filed under section 221.
``(c) Classification of Data.--To the extent possible, in collecting
and reporting the data described in subsection (b), the Secretary shall
classify the data by industry, State, and national totals.
``(d) Report.--Not later than December 15 of each year, the
Secretary shall submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a report
that includes--
[[Page 123 STAT. 394]]
``(1) a summary of the information collected under this
section for the preceding fiscal year;
``(2) information on the distribution of funds to each State
pursuant to section 236(a)(2); and
``(3) any recommendations of the Secretary with respect to
changes in eligibility requirements, benefits, or training
funding under this chapter based on the data collected under
this section.
``(e) Availability of Data.--
``(1) In general.--The Secretary <<NOTE: Web posting.>>
shall make available to the public, by publishing on the website
of the Department of Labor and by other means, as appropriate--
``(A) the report required under subsection (d);
``(B) the data collected under this section, in a
searchable format; and
``(C) a list of cooperating States and cooperating
State agencies that failed to submit the data required
by this section to the Secretary in a timely manner.
``(2) Updates.--The Secretary <<NOTE: Deadline.>> shall
update the data under paragraph (1) on a quarterly basis.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 249A the
following:
``Sec. 249B. Collection and publication of data and reports; information
to workers.''.
(c) Effective Date.--The amendments <<NOTE: 19 USC 2323 note.>>
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.
Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) is
amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``may waive'' and inserting ``shall
waive''; and
(B) by striking ``, in accordance with guidelines
prescribed by the Secretary,''; and
(2) in subparagraph (B), by striking ``would be contrary to
equity and good conscience'' and inserting ``would cause a
financial hardship for the individual (or the individual's
household, if applicable) when taking into consideration the
income and resources reasonably available to the individual (or
household) and other ordinary living expenses of the individual
(or household)''.
SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT
ASSISTANCE.
(a) In General.--Chapter 5 of title II of the Trade Act of 1974 (19
U.S.C. 2391 et seq.) is amended by adding at the end the following:
``SEC. 288. <<NOTE: 19 USC 2397a.>> SENSE OF CONGRESS.
``It is the sense of Congress that the Secretaries of Labor,
Commerce, and Agriculture should apply the provisions of chapter 2
(relating to adjustment assistance for workers), chapter 3 (relating to
adjustment assistance for firms), chapter 4 (relating to adjustment
assistance for communities), and chapter 6 (relating to adjustment
assistance for farmers), respectively, with the utmost regard
[[Page 123 STAT. 395]]
for the interests of workers, firms, communities, and farmers
petitioning for benefits under such chapters.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 287 the
following:
``Sec. 288. Sense of Congress.''.
SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.
Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended--
(1) by striking ``The Secretary shall'' and inserting the
following:
``(a) In General.--The Secretary shall''; and
(2) by adding at the end the following:
``(b) Consultations.--Not later <<NOTE: Deadline.>> than 90 days
before issuing a regulation under subsection (a), the Secretary shall
consult with the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives with respect to the
regulation.''.
SEC. 1858. TECHNICAL CORRECTIONS.
(a) Determinations by Secretary of Labor.--Section 223(c) of the
Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking ``his
determination'' and inserting ``a determination''.
(b) Qualifying Requirements for Workers.--Section 231(a) of the
Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``his application'' and inserting ``the
worker's application''; and
(B) in subparagraph (A), by striking ``he is
covered'' and inserting ``the worker is covered'';
(2) in paragraph (2)--
(A) in subparagraph (A), by striking the period and
inserting a comma; and
(B) in subparagraph (D), by striking ``5 U.S.C.
8521(a)(1)'' and inserting ``section 8521(a)(1) of title
5, United States Code''; and
(3) in paragraph (3)--
(A) by striking ``he'' each place it appears and
inserting ``the worker''; and
(B) in subparagraph (C), by striking ``him'' and
inserting ``the worker''.
(c) Subpoena Power.--Section 249 of the Trade Act of 1974 (19 U.S.C.
2321) is amended--
(1) in the section heading, by striking ``subpena'' and
inserting ``subpoena'';
(2) by striking ``subpena'' and inserting ``subpoena'' each
place it appears; and
(3) in subsection (a), by striking ``him'' and inserting
``the Secretary''.
(d) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 249 and
inserting the following:
``Sec. 249. Subpoena power.''.
[[Page 123 STAT. 396]]
PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.
(a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
2341) is amended by inserting ``or service sector firm'' after
``agricultural firm'' each place it appears.
(b) Definition of Service Sector Firm.--Section 261 of the Trade Act
of 1974 (19 U.S.C. 2351) is amended--
(1) by striking ``chapter,'' and inserting ``chapter:'';
(2) by striking ``the term `firm' '' and inserting the
following:
``(1) Firm.--The term `firm' ''; and
(3) by adding at the end the following:
``(2) Service sector firm.--The term `service sector firm'
means a firm engaged in the business of supplying services.''.
(c) Conforming Amendments.--
(1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C.
2341(c)(1)(C)) is amended--
(A) by inserting ``or services'' after ``articles''
the first place it appears; and
(B) by inserting ``or services which are supplied''
after ``produced''.
(2) Section 251(c)(2)(B)(ii) of such Act is amended to read
as follows:
``(ii) Any firm that engages in exploration or drilling for
oil or natural gas, or otherwise produces oil or natural gas,
shall be considered to be producing articles directly
competitive with imports of oil and with imports of natural
gas.''.
SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.
Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C.
2341(c)(1)(B)) is amended to read as follows:
``(B) that--
``(i) sales or production, or both, of the firm have
decreased absolutely,
``(ii) sales or production, or both, of an article
or service that accounted for not less than 25 percent
of the total sales or production of the firm during the
12-month period preceding the most recent 12-month
period for which date are available have decreased
absolutely,
``(iii) sales or production, or both, of the firm
during the most recent 12-month period for which data
are available have decreased compared to--
``(I) the average annual sales or production
for the firm during the 24-month period preceding
that 12-month period, or
``(II) the average annual sales or production
for the firm during the 36-month period preceding
that 12-month period, and
``(iv) sales or production, or both, of an article
or service that accounted for not less than 25 percent
of the total sales or production of the firm during the
most recent 12-month period for which data are available
have decreased compared to--
``(I) the average annual sales or production
for the article or service during the 24-month
period preceding that 12-month period, or
[[Page 123 STAT. 397]]
``(II) the average annual sales or production
for the article or service during the 36-month
period preceding that 12-month period, and''.
SEC. 1863. BASIS FOR DETERMINATIONS.
Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended,
is further amended by adding at the end the following:
``(e) Basis for Secretary's Determinations.--
For <<NOTE: Certification.>> purposes of subsection (c)(1)(C), the
Secretary may determine that there are increased imports of like or
directly competitive articles or services, if customers accounting for a
significant percentage of the decrease in the sales or production of the
firm certify to the Secretary that such customers have increased their
imports of such articles or services from a foreign country, either
absolutely or relative to their acquisition of such articles or services
from suppliers located in the United States.
``(f) Notification to Firms of Availability of Benefits.--Upon
receiving notice from the Secretary of Labor under section 225 of the
identity of a firm that is covered by a certification issued under
section 223, the Secretary of Commerce shall notify the firm of the
availability of adjustment assistance under this chapter.''.
SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF
APPROPRIATIONS.
(a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2341 et seq.) is amended--
(1) by striking sections 254, 255, 256, and <<NOTE: 19
USC 2344-2347.>> 257;
(2) by redesignating sections 258, 259, 260, 261, 262, 264,
and 265, as <<NOTE: 19 USC 2348-2352, 2354, 2355.>> sections
256, 257, 258, 259, 260, 261, and 262, respectively; and
(3) by inserting after section 253 the following:
``SEC. 254. <<NOTE: 19 USC 2344.>> OVERSIGHT AND ADMINISTRATION.
``(a) In General.--The Secretary <<NOTE: Grants.>> shall, to such
extent and in such amounts as are provided in appropriations Acts,
provide grants to intermediary organizations (referred to in section
253(b)(1)) throughout the United States pursuant to agreements with such
intermediary organizations. Each such agreement shall require the
intermediary organization to provide benefits to firms certified under
section 251. <<NOTE: Deadline. Contracts.>> The Secretary shall, to the
maximum extent practicable, provide by October 1, 2010, that contracts
entered into with intermediary organizations be for a 12-month period
and that all such contracts have the same beginning date and the same
ending date.
``(b) Distribution of Funds.--
``(1) In general.--Not
later <<NOTE: Deadline. Methodology.>> than 90 days after the
date of the enactment of this subsection, the Secretary shall
develop a methodology for the distribution of funds among the
intermediary organizations described in subsection (a).
``(2) Prompt initial distribution.--The <<NOTE: Criteria.>>
methodology described in paragraph (1) shall ensure the prompt
initial distribution of funds and establish additional criteria
governing the apportionment and distribution of the remainder of
such funds among the intermediary organizations.
``(3) Criteria.--The methodology described in paragraph (1)
shall include criteria based on the data in the annual report on
the trade adjustment assistance for firms program
[[Page 123 STAT. 398]]
described in section 1866 of the Trade and Globalization
Adjustment Assistance Act of 2009.
``(c) Requirements for Contracts.--An
agreement <<NOTE: Guidelines.>> with an intermediary organization
described in subsection (a) shall require the intermediary organization
to contract for the supply of services to carry out grants under this
chapter in accordance with terms and conditions that are consistent with
guidelines established by the Secretary.
``(d) <<NOTE: Deadlines.>> Consultations.--
``(1) Consultations regarding methodology.--The Secretary
shall consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives--
``(A) not less than 30 days before finalizing the
methodology described in subsection (b); and
``(B) not less than 60 days before adopting any
changes to such methodology.
``(2) Consultations regarding guidelines.--The Secretary
shall consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives
not less than 60 days before finalizing the guidelines described
in subsection (c) or adopting any subsequent changes to such
guidelines.
``SEC. 255. <<NOTE: 19 USC 2345.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are <<NOTE: Time period.>> authorized to
be appropriated to the Secretary $50,000,000 for each of the fiscal
years 2009 through 2010, and $12,501,000 for the period beginning
October 1, 2010, and ending December 31, 2010, to carry out the
provisions of this chapter. Amounts appropriated pursuant to this
subsection shall--
``(1) be <<NOTE: Deadline.>> available to provide
adjustment assistance to firms that file a petition for such
assistance pursuant to this chapter on or before December 31,
2010; and
``(2) otherwise remain available until expended.
``(b) Personnel.--Of the amounts appropriated pursuant to this
section for each fiscal year, $350,000 shall be available for full-time
positions in the Department of Commerce to administer the provisions of
this chapter. <<NOTE: Establishment.>> Of such funds the Secretary
shall make available to the Economic Development Administration such
sums as may be necessary to establish the position of Director of
Adjustment Assistance for Firms and such other full-time positions as
may be appropriate to administer the provisions of this chapter.''.
(b) <<NOTE: 19 USC 2344 note.>> Residual Authority.--The Secretary
of Commerce shall have the authority to modify, terminate, resolve,
liquidate, or take any other action with respect to a loan, guarantee,
contract, or any other financial assistance that was extended under
section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344,
2345, 2346, and 2347), as in effect on the day before the effective date
set forth in section 1891.
(c) Conforming Amendments.--
(1) Section 256 of the Trade Act of 1974, as redesignated by
subsection (a) of this section, <<NOTE: 19 USC 2348.>> is
amended by striking subsection (d).
(2) Section 258 of the Trade Act of 1974, as redesignated by
subsection (a) of this section, <<NOTE: 19 USC 2350.>> is
amended--
[[Page 123 STAT. 399]]
(A) in the first sentence, by striking ``and
financial''; and
(B) in the last sentence--
(i) by striking ``sections 253 and 254'' and
inserting ``section 253''; and
(ii) by striking ``title 28 of the United
States Code'' and inserting ``title 28, United
States Code''.
(d) Clerical Amendments.--The table of contents of the Trade Act of
1974 is amended by striking the items relating to sections 254, 255,
256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the
following:
``Sec. 254. Oversight and administration.
``Sec. 255. Authorization of appropriations.
``Sec. 256. Protective provisions.
``Sec. 257. Penalties.
``Sec. 258. Civil actions.
``Sec. 259. Definitions.
``Sec. 260. Regulations.
``Sec. 261. Study by Secretary of Commerce when International Trade
Commission begins investigation; action where there is
affirmative finding.
``Sec. 262. Assistance to industries.''.
(e) <<NOTE: 19 USC 2344 note.>> Effective Date.--This section and
the amendments made by this section shall take effect upon the
expiration of the 90-day period beginning on the date of the enactment
of this Act, except that subsections (b) and (d) of section 254 of the
Trade Act of 1974 (as added by subsection (a) of this section) shall
take effect on such date of enactment.
SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.
Section 257 of the Trade Act of 1974, as redesignated by section
1864(a), is <<NOTE: 19 USC 2349.>> amended to read as follows:
``SEC. 257. PENALTIES.
``Any person who--
``(1) makes a false statement of a material fact knowing it
to be false, or knowingly fails to disclose a material fact, or
willfully overvalues any security, for the purpose of
influencing in any way a determination under this chapter, or
for the purpose of obtaining money, property, or anything of
value under this chapter, or
``(2) makes a false statement of a material fact knowing it
to be false, or knowingly fails to disclose a material fact,
when providing information to the Secretary during an
investigation of a petition under this chapter,
shall be imprisoned for not more than 2 years, or fined under title 18,
United States Code, or both.''.
SEC. 1866. <<NOTE: 19 USC 2356.>> ANNUAL REPORT ON TRADE ADJUSTMENT
ASSISTANCE FOR FIRMS.
(a) In General.--Not later than December 15, 2009, and each year
thereafter, the Secretary of Commerce shall prepare a report containing
data regarding the trade adjustment assistance for firms program
provided for in chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall
include the following:
(1) The number of firms that inquired about the program.
(2) The number of petitions filed under section 251.
(3) The number of petitions certified and denied.
(4) The average time for processing petitions.
[[Page 123 STAT. 400]]
(5) The number of petitions filed and firms certified for
each congressional district of the United States.
(6) The number of firms that received assistance in
preparing their petitions.
(7) The number of firms that received assistance developing
business recovery plans.
(8) The number of business recovery plans approved and
denied by the Secretary of Commerce.
(9) Sales, employment, and productivity at each firm
participating in the program at the time of certification.
(10) Sales, employment, and productivity at each firm upon
completion of the program and each year for the 2-year period
following completion.
(11) The financial assistance received by each firm
participating in the program.
(12) The financial contribution made by each firm
participating in the program.
(13) The types of technical assistance included in the
business recovery plans of firms participating in the program.
(14) The number of firms leaving the program before
completing the project or projects in their business recovery
plans and the reason the project was not completed.
(b) Classification of Data.--To the extent possible, in collecting
and reporting the data described in subsection (a), the Secretary shall
classify the data by intermediary organization, State, and national
totals.
(c) Report to Congress; Publication.--The Secretary of Commerce
shall--
(1) submit the report described in subsection (a) to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives; and
(2) <<NOTE: Federal Register, publication.>> publish the
report in the Federal Register and on the website of the
Department of Commerce.
(d) Protection of Confidential Information.--The Secretary of
Commerce may not release information described in subsection (a) that
the Secretary considers to be confidential business information unless
the person submitting the confidential business information had notice,
at the time of submission, that such information would be released by
the Secretary, or such person subsequently consents to the release of
the information. Nothing in this subsection shall be construed to
prohibit the Secretary from providing such confidential business
information to a court in camera or to another party under a protective
order issued by a court.
SEC. 1867. TECHNICAL CORRECTIONS.
(a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
2341), as amended, is further amended--
(1) in subsection (a), by striking ``he has'' and inserting
``the Secretary has''; and
(2) in subsection (d), by striking ``60 days'' and inserting
``40 days''.
(b) Technical Assistance.--Section 253(a)(3) of the Trade Act of
1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of a certified
firm'' and inserting ``to a certified firm''.
[[Page 123 STAT. 401]]
PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
SEC. 1871. <<NOTE: 19 USC 2371 note.>> PURPOSE.
The purpose of the amendments made by this part is to assist
communities impacted by trade with economic adjustment through the
coordination of Federal, State, and local resources, the creation of
community-based development strategies, and the development and
provision of programs that meet the training needs of workers covered by
certifications under section 223.
SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.
(a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19
U.S.C. 2371 et seq.) is amended to read as follows:
``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
``Subchapter A--Trade Adjustment Assistance for Communities
``SEC. 271. <<NOTE: 19 USC 2371.>> DEFINITIONS.
``In this subchapter:
``(1) Agricultural commodity producer.--The term
`agricultural commodity producer' has the meaning given that
term in section 291.
``(2) Community.--The term `community' means a city, county,
or other political subdivision of a State or a consortium of
political subdivisions of a State.
``(3) Community impacted by trade.--The term `community
impacted by trade' means a community described in section
273(b)(2).
``(4) Eligible community.--The term `eligible community'
means a community that the Secretary has determined under
section 273(b)(1) is eligible to apply for assistance under this
subchapter.
``(5) Secretary.--The term `Secretary' means the Secretary
of Commerce.
``SEC. 272. <<NOTE: 19 USC 2371a.>> ESTABLISHMENT OF TRADE ADJUSTMENT
ASSISTANCE FOR COMMUNITIES PROGRAM.
``Not <<NOTE: Deadline.>> later than August 1, 2009, the Secretary
shall establish a trade adjustment assistance for communities program at
the Department of Commerce under which the Secretary shall--
``(1) provide technical assistance under section 274 to
communities impacted by trade to facilitate the economic
adjustment of those communities; and
``(2) <<NOTE: Grants.>> award grants to communities
impacted by trade to carry out strategic plans developed under
section 276.
``SEC. 273. <<NOTE: 19 USC 2371b.>> ELIGIBILITY; NOTIFICATION.
``(a) <<NOTE: Deadlines.>> Petition.--
``(1) In general.--A community may submit a petition to the
Secretary for an affirmative determination under subsection
(b)(1) that the community is eligible to apply for assistance
under this subchapter if--
[[Page 123 STAT. 402]]
``(A) on or after August 1, 2009, one or more
certifications described in subsection (b)(3) are made
with respect to the community; and
``(B) the community submits the petition not later
than 180 days after the date of the most recent
certification.
``(2) Special rule with respect to certain communities.--In
the <<NOTE: Time period.>> case of a community with respect to
which one or more certifications described in subsection (b)(3)
were made on or after January 1, 2007, and before August 1,
2009, the community may submit not later than February 1, 2010,
a petition to the Secretary for an affirmative determination
under subsection (b)(1).
``(b) Affirmative Determination.--
``(1) In general.--The Secretary shall make an affirmative
determination that a community is eligible to apply for
assistance under this subchapter if the Secretary determines
that the community is a community impacted by trade.
``(2) Community impacted by trade.--A community is a
community impacted by trade if--
``(A) one or more certifications described in
paragraph (3) are made with respect to the community;
and
``(B) the Secretary determines that the community is
significantly affected by the threat to, or the loss of,
jobs associated with any such certification.
``(3) Certification described.--A certification described in
this paragraph is a certification--
``(A) by the Secretary of Labor that a group of
workers in the community is eligible to apply for
assistance under section 223;
``(B) by the Secretary of Commerce that a firm
located in the community is eligible to apply for
adjustment assistance under section 251; or
``(C) by the Secretary of Agriculture that a group
of agricultural commodity producers in the community is
eligible to apply for adjustment assistance under
section 293.
``(c) Notifications.--
``(1) Notification to the governor.--The Governor of a State
shall be notified promptly--
``(A) by the Secretary of Labor, upon making a
determination that a group of workers in the State is
eligible for assistance under section 223;
``(B) by the Secretary of Commerce, upon making a
determination that a firm in the State is eligible for
assistance under section 251; and
``(C) by the Secretary of Agriculture, upon making a
determination that a group of agricultural commodity
producers in the State is eligible for assistance under
section 293.
``(2) Notification to community.--Upon making an affirmative
determination under subsection (b)(1) that a community is
eligible to apply for assistance under this subchapter, the
Secretary shall promptly notify the community and the Governor
of the State in which the community is located--
``(A) of the affirmative determination;
[[Page 123 STAT. 403]]
``(B) of the applicable provisions of this
subchapter; and
``(C) of the means for obtaining assistance under
this subchapter and other appropriate economic
assistance that may be available to the community.
``SEC. 274. <<NOTE: 19 USC 2371c.>> TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall provide comprehensive
technical assistance to an eligible community to assist the community
to--
``(1) diversify and strengthen the economy in the community;
``(2) identify significant impediments to economic
development that result from the impact of trade on the
community; and
``(3) develop a strategic plan under section 276 to address
economic adjustment and workforce dislocation in the community,
including unemployment among agricultural commodity producers.
``(b) Coordination of Federal Response.--The Secretary shall
coordinate the Federal response to an eligible community by--
``(1) identifying Federal, State, and local resources that
are available to assist the community in responding to economic
distress; and
``(2) assisting the community in accessing available Federal
assistance and ensuring that such assistance is provided in a
targeted, integrated manner.
``(c) Interagency Community Assistance Working Group.--
``(1) In general.--The Secretary <<NOTE: Establishment.>>
shall establish an interagency Community Assistance Working
Group, to be chaired by the Secretary or the Secretary's
designee, which shall assist the Secretary with the coordination
of the Federal response pursuant to subsection (b).
``(2) Membership.--The Working Group shall consist of
representatives of any Federal department or agency with
responsibility for providing economic adjustment assistance,
including the Department of Agriculture, the Department of
Defense, the Department of Education, the Department of Labor,
the Department of Housing and Urban Development, the Department
of Health and Human Services, the Small Business Administration,
the Department of the Treasury, and any other Federal, State, or
regional public department or agency the Secretary determines to
be appropriate.
``SEC. 275. <<NOTE: 19 USC 2371d.>> GRANTS FOR ELIGIBLE COMMUNITIES.
``(a) In General.--The Secretary may award a grant under this
section to an eligible community to assist the community in carrying out
any project or program that is included in a strategic plan developed by
the community under section 276.
``(b) Application.--
``(1) In general.--An eligible community seeking to receive
a grant under this section shall submit a grant application to
the Secretary that contains--
``(A) the strategic plan developed by the community
under section 276(a)(1)(A) and approved by the Secretary
under section 276(a)(1)(B); and
[[Page 123 STAT. 404]]
``(B) a description of the project or program
included in the strategic plan with respect to which the
community seeks the grant.
``(2) Coordination among grant programs.--If an entity in an
eligible community is seeking or plans to seek a Community
College and Career Training Grant under section 278 or a Sector
Partnership Grant under section 279A while the eligible
community is seeking a grant under this section, the eligible
community shall include in the grant application a description
of how the eligible community will integrate any projects or
programs carried out using a grant under this section with any
projects or programs that may be carried out using such other
grants.
``(c) Limitation.--An eligible community may not be awarded more
than $5,000,000 under this section.
``(d) Cost-Sharing.--
``(1) Federal share.--The Federal share of a project or
program for which a grant is awarded under this section may not
exceed 95 percent of the cost of such project or program.
``(2) Community share.--The Secretary shall require, as a
condition of awarding a grant to an eligible community under
this section, that the eligible community contribute not less
than an amount equal to 5 percent of the amount of the grant
toward the cost of the project or program for which the grant is
awarded.
``(e) Grants to Small- and Medium-Sized Communities.--The Secretary
shall give priority to grant applications submitted under this section
by eligible communities that are small- and medium-sized communities.
``(f) Annual Report.--Not later than December 15 in each of the
calendar years 2009 through 2011, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report--
``(1) describing each grant awarded under this section
during the preceding fiscal year; and
``(2) assessing the impact on the eligible community of each
such grant awarded in a fiscal year before the fiscal year
referred to in paragraph (1).
``SEC. 276. <<NOTE: 19 USC 2371e.>> STRATEGIC PLANS.
``(a) In General.--
``(1) Development.--An eligible community that intends to
apply for a grant under section 275 shall--
``(A) develop a strategic plan for the community's
economic adjustment to the impact of trade; and
``(B) submit the plan to the Secretary for
evaluation and approval.
``(2) Involvement of private and public entities.--
``(A) In general.--To the extent practicable, an
eligible community shall consult with entities described
in subparagraph (B) in developing a strategic plan under
paragraph (1).
``(B) Entities described.--Entities described in
this subparagraph are public and private entities within
the eligible community, including--
``(i) local, county, or State government
agencies serving the community;
[[Page 123 STAT. 405]]
``(ii) firms, including small- and medium-
sized firms, within the community;
``(iii) local workforce investment boards
established under section 117 of the Workforce
Investment Act of 1998 (29 U.S.C. 2832);
``(iv) labor organizations, including State
labor federations and labor-management
initiatives, representing workers in the
community; and
``(v) educational institutions, local
educational agencies, or other training providers
serving the community.
``(b) Contents.--The strategic plan shall, at a minimum, contain the
following:
``(1) A description and analysis of the capacity of the
eligible community to achieve economic adjustment to the impact
of trade.
``(2) An analysis of the economic development challenges and
opportunities facing the community as well as the strengths and
weaknesses of the economy of the community.
``(3) An assessment of the commitment of the eligible
community to the strategic plan over the long term and the
participation and input of members of the community affected by
economic dislocation.
``(4) A description of the role and the participation of the
entities described in subsection (a)(2)(B) in developing the
strategic plan.
``(5) A description of the projects to be undertaken by the
eligible community under the strategic plan.
``(6) A description of how the strategic plan and the
projects to be undertaken by the eligible community will
facilitate the community's economic adjustment.
``(7) A description of the educational and training programs
available to workers in the eligible community and the future
employment needs of the community.
``(8) An assessment of the cost of implementing the
strategic plan, the timing of funding required by the eligible
community to implement the strategic plan, and the method of
financing to be used to implement the strategic plan.
``(9) A strategy for continuing the economic adjustment of
the eligible community after the completion of the projects
described in paragraph (5).
``(c) Grants to Develop Strategic Plans.--
``(1) In general.--The Secretary, upon receipt of an
application from an eligible community, may award a grant to the
community to assist the community in developing a strategic plan
under subsection (a)(1). A grant awarded under this paragraph
shall not exceed 75 percent of the cost of developing the
strategic plan.
``(2) <<NOTE: Time period.>> Funds to be used.--Of the
funds appropriated pursuant to section 277(c), the Secretary may
make available not more than $25,000,000 for each of the fiscal
years 2009 and 2010, and $6,250,000 for the period beginning
October 1, 2010, and ending December 31, 2010, to provide grants
to eligible communities under paragraph (1).
``SEC. 277. <<NOTE: 19 USC 2371f.>> GENERAL PROVISIONS.
``(a) Regulations.--
[[Page 123 STAT. 406]]
``(1) In general.--The Secretary shall prescribe such
regulations as are necessary to carry out the provisions of this
subchapter, including--
``(A) establishing specific guidelines for the
submission and evaluation of strategic plans under
section 276;
``(B) establishing specific guidelines for the
submission and evaluation of grant applications under
section 275; and
``(C) administering the grant programs established
under sections 275 and 276.
``(2) <<NOTE: Deadline.>> Consultations.--The Secretary
shall consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives
not less than 90 days prior to promulgating any final rule or
regulation pursuant to paragraph (1).
``(b) <<NOTE: Designation.>> Personnel.--The Secretary shall
designate such staff as may be necessary to carry out the
responsibilities described in this subchapter.
``(c) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary $150,000,000 for each of the fiscal years 2009
and 2010, and $37,500,000 for the period beginning October 1,
2010, and ending December 31, 2010, to carry out this
subchapter.
``(2) Availability.--Amounts appropriated pursuant to this
subchapter--
``(A) shall be available to provide adjustment
assistance to communities that have been approved for
assistance pursuant to this chapter on or before
December 31, 2010; and
``(B) shall otherwise remain available until
expended.
``(3) Supplement not supplant.--Funds appropriated pursuant
to this subchapter shall be used to supplement and not supplant
other Federal, State, and local public funds expended to provide
economic development assistance for communities.
``Subchapter B--Community College and Career Training Grant Program
``SEC. 278. <<NOTE: 19 USC 2372.>> COMMUNITY COLLEGE AND CAREER
TRAINING GRANT PROGRAM.
``(a) Grants Authorized.--
``(1) <<NOTE: Effective date.>> In general.--Beginning
August 1, 2009, the Secretary may award Community College and
Career Training Grants to eligible institutions for the purpose
of developing, offering, or improving educational or career
training programs for workers eligible for training under
section 236.
``(2) Limitations.--An eligible institution may not be
awarded--
``(A) more than one grant under this section; or
``(B) a grant under this section in excess of
$1,000,000.
``(b) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible institution'
means an institution of higher education (as defined in section
102 of the Higher Education Act of 1965 (20 U.S.C. 1002)),
[[Page 123 STAT. 407]]
but only with respect to a program offered by the institution
that can be completed in not more than 2 years.
``(2) Secretary.--The term `Secretary' means the Secretary
of Labor.
``(c) Grant Proposals.--
``(1) In general.--An eligible institution seeking to
receive a grant under this section shall submit a grant proposal
to the Secretary at such time, in such manner, and containing
such information as the Secretary may require.
``(2) <<NOTE: Deadline.>> Guidelines.--Not later than June
1, 2009, the Secretary shall--
``(A) promulgate guidelines for the submission of
grant proposals under this section; and
``(B) <<NOTE: Web posting.>> publish and maintain
such guidelines on the website of the Department of
Labor.
``(3) Assistance.--The Secretary shall offer assistance in
preparing a grant proposal to any eligible institution that
requests such assistance.
``(4) General requirements for grant proposals.--
``(A) In general.--A grant proposal submitted to the
Secretary under this section shall include a detailed
description of--
``(i) the specific project for which the grant
proposal is submitted, including the manner in
which the grant will be used to develop, offer, or
improve an educational or career training program
that is suited to workers eligible for training
under section 236;
``(ii) the extent to which the project for
which the grant proposal is submitted will meet
the educational or career training needs of
workers in the community served by the eligible
institution who are eligible for training under
section 236;
``(iii) the extent to which the project for
which the grant proposal is submitted fits within
any overall strategic plan developed by an
eligible community under section 276;
``(iv) the extent to which the project for
which the grant proposal is submitted relates to
any project funded by a Sector Partnership Grant
awarded under section 279A; and
``(v) any previous experience of the eligible
institution in providing educational or career
training programs to workers eligible for training
under section 236.
``(B) Absence of experience.--The absence of any
previous experience in providing educational or career
training programs described in subparagraph (A)(v) shall
not automatically disqualify an eligible institution
from receiving a grant under this section.
``(5) Community outreach required.--In order to be
considered by the Secretary, a grant proposal submitted by an
eligible institution under this section shall--
``(A) demonstrate that the eligible institution--
``(i) reached out to employers, and other
entities described in section 276(a)(2)(B) to
identify--
[[Page 123 STAT. 408]]
``(I) any shortcomings in existing
educational and career training
opportunities available to workers in
the community; and
``(II) any future employment
opportunities within the community and
the educational and career training
skills required for workers to meet the
future employment demand;
``(ii) reached out to other similarly situated
institutions in an effort to benefit from any best
practices that may be shared with respect to
providing educational or career training programs
to workers eligible for training under section
236; and
``(iii) reached out to any eligible
partnership in the community that has sought or
received a Sector Partnership Grant under section
279A to enhance the effectiveness of each grant
and avoid duplication of efforts; and
``(B) include a detailed description of--
``(i) the extent and outcome of the outreach
conducted under subparagraph (A);
``(ii) the extent to which the project for
which the grant proposal is submitted will
contribute to meeting any shortcomings identified
under subparagraph (A)(i)(I) or any educational or
career training needs identified under
subparagraph (A)(i)(II); and
``(iii) the extent to which employers,
including small- and medium-sized firms within the
community, have demonstrated a commitment to
employing workers who would benefit from the
project for which the grant proposal is submitted.
``(d) Criteria for Award of Grants.--
``(1) In general.--Subject to the appropriation of funds,
the Secretary shall award a grant under this section based on--
``(A) a determination of the merits of the grant
proposal submitted by the eligible institution to
develop, offer, or improve educational or career
training programs to be made available to workers
eligible for training under section 236;
``(B) an evaluation of the likely employment
opportunities available to workers who complete an
educational or career training program that the eligible
institution proposes to develop, offer, or improve; and
``(C) an evaluation of prior demand for training
programs by workers eligible for training under section
236 in the community served by the eligible institution,
as well as the availability and capacity of existing
training programs to meet future demand for training
programs.
``(2) Priority for certain communities.--In awarding grants
under this section, the Secretary shall give priority to an
eligible institution that serves a community that the Secretary
of Commerce has determined under section 273 is eligible to
apply for assistance under subchapter A within the 5-year period
preceding the date on which the grant proposal is submitted to
the Secretary under this section.
[[Page 123 STAT. 409]]
``(3) Matching requirements.--A grant awarded under this
section may not be used to satisfy any private matching
requirement under any other provision of law.
``(e) Annual Report.--Not later than December 15 in each of the
calendar years 2009 through 2011, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report--
``(1) describing each grant awarded under this section
during the preceding fiscal year; and
``(2) assessing the impact of each award of a grant under
this section in a fiscal year preceding the fiscal year referred
to in paragraph (1) on workers receiving training under section
236.
``SEC. 279. <<NOTE: 19 USC 2372a.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) <<NOTE: Time period.>> Authorization of Appropriations.--
There are authorized to be appropriated to the Secretary of Labor
$40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000
for the period beginning October 1, 2010, and ending December 31, 2010,
to fund the Community College and Career Training Grant Program. Funds
appropriated pursuant to this section shall remain available until
expended.
``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended to support community college and
career training programs.
``Subchapter C--Industry or Sector Partnership Grant Program for
Communities Impacted by Trade
``SEC. 279A. <<NOTE: 19 USC 2373.>> INDUSTRY OR SECTOR PARTNERSHIP
GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE.
``(a) Purpose.--The purpose of this subchapter is to facilitate
efforts by industry or sector partnerships to strengthen and revitalize
industries and create employment opportunities for workers in
communities impacted by trade.
``(b) Definitions.--In this subchapter:
``(1) Community impacted by trade.--The term `community
impacted by trade' has the meaning given that term in section
271.
``(2) Dislocated worker.--The term `dislocated worker' means
a worker who has been totally or partially separated, or is
threatened with total or partial separation, from employment in
an industry or sector in a community impacted by trade.
``(3) Eligible partnership.--The term `eligible partnership'
means a voluntary partnership composed of public and private
persons, firms, or other entities within a community impacted by
trade, that shall include representatives of--
``(A) an industry or sector within the community,
including an industry association;
``(B) local, county, or State government;
``(C) multiple firms in the industry or sector,
including small- and medium-sized firms, within the
community;
``(D) local workforce investment boards established
under section 117 of the Workforce Investment Act of
1998 (29 U.S.C. 2832);
[[Page 123 STAT. 410]]
``(E) labor organizations, including State labor
federations and labor-management initiatives,
representing workers in the community; and
``(F) educational institutions, local educational
agencies, or other training providers serving the
community.
``(4) Lead entity.--The term `lead entity' means--
``(A) an entity designated by the eligible
partnership to be responsible for submitting a grant
proposal under subsection (e) and serving as the
eligible partnership's fiscal agent in expending any
Sector Partnership Grant awarded under this section; or
``(B) a State agency designated by the Governor of
the State to carry out the responsibilities described in
subparagraph (A).
``(5) Secretary.--The term `Secretary' means the Secretary
of Labor.
``(6) Targeted industry or sector.--The term `targeted
industry or sector' means the industry or sector represented by
an eligible partnership.
``(c) Sector Partnership Grants Authorized.--
Beginning <<NOTE: Effective date.>> on August 1, 2009, and subject to
the appropriation of funds, the Secretary shall award Sector Partnership
Grants to eligible partnerships to assist the eligible partnerships in
carrying out projects, over periods of not more than 3 years, to
strengthen and revitalize industries and sectors and create employment
opportunities for dislocated workers.
``(d) Use of Sector Partnership Grants.--An eligible partnership may
use a Sector Partnership Grant to carry out any project that the
Secretary determines will further the purpose of this subchapter, which
may include--
``(1) identifying the skill needs of the targeted industry
or sector and any gaps in the available supply of skilled
workers in the community impacted by trade, and developing
strategies for filling the gaps, including by--
``(A) developing systems to better link firms in the
targeted industry or sector to available skilled
workers;
``(B) helping firms in the targeted industry or
sector to obtain access to new sources of qualified job
applicants;
``(C) retraining dislocated and incumbent workers;
or
``(D) facilitating the training of new skilled
workers by aligning the instruction provided by local
suppliers of education and training services with the
needs of the targeted industry or sector;
``(2) analyzing the skills and education levels of
dislocated and incumbent workers and developing training to
address skill gaps that prevent such workers from obtaining jobs
in the targeted industry or sector;
``(3) helping firms, especially small- and medium-sized
firms, in the targeted industry or sector increase their
productivity and the productivity of their workers;
``(4) helping such firms retain incumbent workers;
``(5) developing learning consortia of small- and medium-
sized firms in the targeted industry or sector with similar
training needs to enable the firms to combine their purchases of
training services, and thereby lower their training costs;
``(6) providing information and outreach activities to firms
in the targeted industry or sector regarding the activities of
[[Page 123 STAT. 411]]
the eligible partnership and other local service suppliers that
could assist the firms in meeting needs for skilled workers;
``(7) seeking, applying, and disseminating best practices
learned from similarly situated communities impacted by trade in
the development and implementation of economic growth and
revitalization strategies; and
``(8) identifying additional public and private resources to
support the activities described in this subsection, which may
include the option to apply for a community grant under section
275 or a Community College and Career Training Grant under
section 278 (subject to meeting any additional requirements of
those sections).
``(e) Grant Proposals.--
``(1) In general.--The lead entity of an eligible
partnership seeking to receive a Sector Partnership Grant under
this section shall submit a grant proposal to the Secretary at
such time, in such manner, and containing such information as
the Secretary may require.
``(2) General requirements of grant proposals.--A grant
proposal submitted under paragraph (1) shall, at a minimum--
``(A) identify the members of the eligible
partnership;
``(B) identify the targeted industry or sector for
which the eligible partnership intends to carry out
projects using the Sector Partnership Grant;
``(C) describe the goals that the eligible
partnership intends to achieve to promote the targeted
industry or sector;
``(D) describe the projects that the eligible
partnership will undertake to achieve such goals;
``(E) demonstrate that the eligible partnership has
the organizational capacity to carry out the projects
described in subparagraph (D);
``(F) explain--
``(i) whether--
``(I) the community impacted by
trade has sought or received a community
grant under section 275;
``(II) an eligible institution in
the community has sought or received a
Community College and Career Training
Grant under section 278; or
``(III) any other entity in the
community has received funds pursuant to
any other federally funded training
project; and
``(ii) how the eligible partnership will
coordinate its use of a Sector Partnership Grant
with the use of such other grants or funds in
order to enhance the effectiveness of each grant
and any such funds and avoid duplication of
efforts; and
``(G) include performance measures, developed based
on the performance measures issued by the Secretary
under subsection (g)(2), and a timeline for measuring
progress toward achieving the goals described in
subparagraph (C).
``(f) Award of Grants.--
``(1) In general.--Upon application by the lead entity of an
eligible partnership, the Secretary may award a Sector
Partnership Grant to the eligible partnership to assist the
[[Page 123 STAT. 412]]
partnership in carrying out any of the projects in the grant
proposal that the Secretary determines will further the purposes
of this subchapter.
``(2) Limitations.--An eligible partnership may not be
awarded--
``(A) more than one Sector Partnership Grant; or
``(B) a total grant award under this subchapter in
excess of--
``(i) except as provided in clause (ii),
$2,500,000; or
``(ii) in the case of an eligible partnership
located within a community impacted by trade that
is not served by an institution receiving a
Community College and Career Training Grant under
section 278, $3,000,000.
``(g) Administration by the Secretary.--
``(1) Technical assistance and oversight.--
``(A) In general.--The Secretary shall provide
technical assistance to, and oversight of, the lead
entity of an eligible partnership in applying for and
administering Sector Partnership Grants awarded under
this section.
``(B) Technical assistance.--Technical assistance
provided under subparagraph (A) shall include providing
conferences and such other methods of collecting and
disseminating information on best practices developed by
eligible partnerships as the Secretary determines
appropriate.
``(C) Grants or contracts for technical
assistance.--The Secretary may award a grant or contract
to one or more national or State organizations to
provide technical assistance to foster the planning,
formation, and implementation of eligible partnerships.
``(2) Performance measures.--The Secretary shall issue a
range of performance measures, with quantifiable benchmarks, and
methodologies that eligible partnerships may use to measure
progress toward the goals described in subsection (e). In
developing such measures, the Secretary shall consider the
benefits of the eligible partnership and its activities for
workers, firms, industries, and communities.
``(h) Reports.--
``(1) Progress report.--Not later than 1 year after
receiving a Sector Partnership Grant, and 3 years thereafter,
the lead entity shall submit to the Secretary, on behalf of the
eligible partnership, a report containing--
``(A) a detailed description of the progress made
toward achieving the goals described in subsection
(e)(2)(C), using the performance measures required under
subsection (e)(2)(G);
``(B) a detailed evaluation of the impact of the
grant award on workers and employers in the community
impacted by trade; and
``(C) a detailed description of all expenditures of
funds awarded to the eligible partnership under the
Sector Partnership Grant approved by the Secretary under
this subchapter.
``(2) Annual report.--Not later than December 15 in each of
the calendar years 2009 through 2011, the Secretary shall submit
to the Committee on Finance of the Senate and the
[[Page 123 STAT. 413]]
Committee on Ways and Means of the House of Representatives a
report--
``(A) describing each Sector Partnership Grant
awarded to an eligible partnership during the preceding
fiscal year; and
``(B) assessing the impact of each Sector
Partnership Grant awarded in a fiscal year preceding the
fiscal year referred to in subparagraph (A) on workers
and employers in communities impacted by trade.
``SEC. 279B. <<NOTE: 19 USC 2373a.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) <<NOTE: Time period.>> In General.--There are authorized to
be appropriated to the Secretary of Labor $40,000,000 for each of the
fiscal years 2009 and 2010, and $10,000,000 for the period beginning
October 1, 2010, and ending December 31, 2010, to carry out the Sector
Partnership Grant program under section 279A. Funds appropriated
pursuant to this section shall remain available until expended.
``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended to support the economic
development of local communities.
``(c) Administrative Costs.--The Secretary may retain not more than
5 percent of the funds appropriated pursuant to this section for each
fiscal year to administer the Sector Partnership Grant program under
section 279A.
``Subchapter D--General Provisions
``SEC. 279C. <<NOTE: 19 USC 2374.>> RULE OF CONSTRUCTION.
``Nothing in this chapter prevents a worker from receiving trade
adjustment assistance under chapter 2 of this title at the same time the
worker is receiving assistance in any manner from--
``(1) a community receiving a community grant under
subchapter A;
``(2) an eligible institution receiving a Community College
and Career Training Grant under subchapter B; or
``(3) an eligible partnership receiving a Sector Partnership
Grant under subchapter C.''.
SEC. 1873. CONFORMING AMENDMENTS.
(a) Table of Contents.--The table of contents of the Trade Act of
1974 is amended by striking the items relating to chapter 4 of title II
and inserting the following:
``Chapter 4--Trade Adjustment Assistance for Communities
``Subchapter A--Trade Adjustment Assistance for Communities
``Sec. 271. Definitions.
``Sec. 272. Establishment of trade adjustment assistance for communities
program.
``Sec. 273. Eligibility; notification.
``Sec. 274. Technical assistance.
``Sec. 275. Grants for eligible communities.
``Sec. 276. Strategic plans.
``Sec. 277. General provisions.
``Subchapter B--Community College and Career Training Grant Program
``Sec. 278. Community college and career training grant program.
``Sec. 279. Authorization of appropriations.
[[Page 123 STAT. 414]]
``Subchapter C--Industry or Sector Partnership Grant Program for
Communities Impacted by Trade
``Sec. 279A. Industry or sector partnership grant program for
communities impacted by trade.
``Sec. 279B. Authorization of appropriations.
``Subchapter D--General Provisions
``Sec. 279C. Rule of construction.''
(b) Judicial Review.--
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C.
2395(a)) is amended--
(A) by inserting ``or 296'' after ``section 293'';
(B) by striking ``or any other interested domestic
party'' and inserting ``or authorized representative of
a community''; and
(C) by striking ``section 271'' and inserting
``section 273''.
(2) Section 1581(d) of title 28, United States Code, is
amended--
(A) in paragraph (2), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (3)--
(i) by striking ``271'' and inserting ``273'';
and
(ii) by striking the period and inserting ``;
and''; and
(C) by adding at the end the following:
``(4) any final determination of the Secretary of
Agriculture under section 293 or 296 of the Trade Act of 1974
(19 U.S.C. 2401b) with respect to the eligibility of a group of
agricultural commodity producers for adjustment assistance under
such Act.''.
PART IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 1881. DEFINITIONS.
Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Agricultural commodity.--The term `agricultural
commodity' includes--
``(A) any agricultural commodity (including
livestock) in its raw or natural state;
``(B) any class of goods within an agricultural
commodity; and
``(C) in the case of an agricultural commodity
producer described in paragraph (2)(B), wild-caught
aquatic species.'';
(2) by amending paragraph (2) to read as follows:
``(2) Agricultural commodity producer.--The term
`agricultural commodity producer' means--
``(A) a person that shares in the risk of producing
an agricultural commodity and that is entitled to a
share of the commodity for marketing, including an
operator, a sharecropper, or a person that owns or rents
the land on which the commodity is produced; or
``(B) a person that reports gain or loss from the
trade or business of fishing on the person's annual
Federal income tax return for the taxable year that most
closely
[[Page 123 STAT. 415]]
corresponds to the marketing year with respect to which
a petition is filed under section 292.''; and
(3) by adding at the end the following:
``(7) Marketing year.--The term `marketing year' means--
``(A) a marketing year designated by the Secretary
with respect to an agricultural commodity; or
``(B) in the case of an agricultural commodity with
respect to which the Secretary does not designate a
marketing year, a calendar year.''.
SEC. 1882. ELIGIBILITY.
(a) In General.--Section 292 of the Trade Act of 1974 (19 U.S.C.
2401a) is amended by striking subsections (c) through (e) and inserting
the following:
``(c) Group Eligibility Requirements.-- <<NOTE: Certification.>> The
Secretary shall certify a group of agricultural commodity producers as
eligible to apply for adjustment assistance under this chapter if the
Secretary determines that--
``(1)(A) the national average price of the agricultural
commodity produced by the group during the most recent marketing
year for which data are available is less than 85 percent of the
average of the national average price for the commodity in the 3
marketing years preceding such marketing year;
``(B) the quantity of production of the agricultural
commodity produced by the group during such marketing year is
less than 85 percent of the average of the quantity of
production of the commodity produced by the group in the 3
marketing years preceding such marketing year;
``(C) the value of production of the agricultural commodity
produced by the group during such marketing year is less than 85
percent of the average value of production of the commodity
produced by the group in the 3 marketing years preceding such
marketing year; or
``(D) the cash receipts for the agricultural commodity
produced by the group during such marketing year are less than
85 percent of the average of the cash receipts for the commodity
produced by the group in the 3 marketing years preceding such
marketing year;
``(2) the volume of imports of articles like or directly
competitive with the agricultural commodity produced by the
group in the marketing year with respect to which the group
files the petition increased compared to the average volume of
such imports during the 3 marketing years preceding such
marketing year; and
``(3) the increase in such imports contributed importantly
to the decrease in the national average price, quantity of
production, or value of production of, or cash receipts for, the
agricultural commodity, as described in paragraph (1).
``(d) <<NOTE: Deadline. Notice. Federal Register, publication.>>
Eligibility of Certain Other Producers.--An agricultural commodity
producer or group of producers that resides outside of the State or
region identified in the petition filed under subsection (a) may file a
request to become a party to that petition not later than 15 days after
the date the notice is published in the Federal Register under
subsection (a) with respect to that petition.
``(e) Treatment of Classes of Goods Within a Commodity.--In any case
in which there are separate classes of goods within
[[Page 123 STAT. 416]]
an agricultural commodity, the Secretary shall treat each class as a
separate commodity in determining under subsection (c)--
``(1) group eligibility;
``(2) the national average price, quantity of production, or
value of production, or cash receipts; and
``(3) the volume of imports.''.
(b) Conforming Amendments.--Section 293 of the Trade Act of 1974 (19
U.S.C. 2401b) is amended--
(1) in subsection (a), by striking ``section 292 (c) or (d),
as the case may be,'' and inserting ``section 292(c)''; and
(2) in subsection (c), by striking ``decline in price for''
and inserting ``decrease in the national average price, quantity
of production, or value of production of, or cash receipts
for,''.
SEC. 1883. BENEFITS.
(a) In General.--Section 296 of the Trade Act of 1974 (19 U.S.C.
2401e) is amended to read as follows:
``SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL
COMMODITY PRODUCERS.
``(a) In General.--
``(1) Requirements.--
``(A) In general.-- <<NOTE: Deadline.>> Benefits
under this chapter shall be available to an agricultural
commodity producer covered by a certification under this
chapter who files an application for such benefits not
later than 90 days after the date on which the Secretary
makes a determination and issues a certification of
eligibility under section 293, if the producer submits
to the Secretary sufficient information to establish
that--
``(i) the producer produced the agricultural
commodity covered by the application filed under
this subsection in the marketing year with respect
to which the petition is filed and in at least 1
of the 3 marketing years preceding that marketing
year;
``(ii)(I) the quantity of the agricultural
commodity that was produced by the producer in the
marketing year with respect to which the petition
is filed has decreased compared to the most recent
marketing year preceding that marketing year for
which data are available; or
``(II)(aa) the price received for the
agricultural commodity by the producer during the
marketing year with respect to which the petition
is filed has decreased compared to the average
price for the commodity received by the producer
in the 3 marketing years preceding that marketing
year; or
``(bb) the county level price maintained by
the Secretary for the agricultural commodity on
the date on which the petition is filed has
decreased compared to the average county level
price for the commodity in the 3 marketing years
preceding the date on which the petition is filed;
and
``(iii) the producer is not receiving--
``(I) cash benefits under chapter 2
or 3; or
``(II) benefits based on the
production of an agricultural commodity
covered by another petition filed under
this chapter.
[[Page 123 STAT. 417]]
``(B) Special rule with respect to crops not grown
every year.--For purposes of subparagraph
(A)(ii)(II)(aa), if a petition is filed with respect to
an agricultural commodity that is not produced by the
producer every year, an agricultural commodity producer
producing that commodity may establish the average price
received for the commodity by the producer in the 3
marketing years preceding the year with respect to which
the petition is filed by using average price data for
the 3 most recent marketing years in which the producer
produced the commodity and for which data are available.
``(2) Limitations based on adjusted gross income.--
``(A) In general.--Notwithstanding any other
provision of this chapter, an agricultural commodity
producer shall not be eligible for assistance under this
chapter in any year in which the average adjusted gross
income (as defined in section 1001D(a) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(a))) of the
producer exceeds the level set forth in subparagraph (A)
or (B) of section 1001D(b)(1) of the Food Security Act
of 1985 (7 U.S.C. 1308-3a(b)(1)), whichever is
applicable.
``(B) Demonstration of compliance.--An agricultural
commodity producer shall provide to the Secretary such
information as the Secretary determines necessary to
demonstrate that the producer is in compliance with the
limitation under subparagraph (A).
``(C) Counter-cyclical and acre payments.--The total
amount of payments made to an agricultural commodity
producer under this chapter during any crop year may not
exceed the limitations on payments set forth in
subsections (b)(2), (b)(3), (c)(2), and (c)(3) of
section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308).
``(b) Technical Assistance.--
``(1) Initial technical assistance.--
``(A) In general.--An agricultural commodity
producer that files an application and meets the
requirements under subsection (a)(1) shall be entitled
to receive initial technical assistance designed to
improve the competitiveness of the production and
marketing of the agricultural commodity with respect to
which the producer was certified under this chapter.
Such assistance shall include information regarding--
``(i) improving the yield and marketing of
that agricultural commodity; and
``(ii) the feasibility and desirability of
substituting one or more alternative agricultural
commodities for that agricultural commodity.
``(B) Transportation and subsistence expenses.--
``(i) In general.--The Secretary may authorize
supplemental assistance necessary to defray
reasonable transportation and subsistence expenses
incurred by an agricultural commodity producer in
connection with initial technical assistance under
subparagraph (A) if such assistance is provided at
facilities that are not within normal commuting
distance of the regular place of residence of the
producer.
[[Page 123 STAT. 418]]
``(ii) Exceptions.--The Secretary may not
authorize payments to an agricultural commodity
producer under clause (i)--
``(I) for subsistence expenses that
exceed the lesser of--
``(aa) the actual per diem
expenses for subsistence
incurred by the producer; or
``(bb) the prevailing per
diem allowance rate authorized
under Federal travel
regulations; or
``(II) for travel expenses that
exceed the prevailing mileage rate
authorized under the Federal travel
regulations.
``(2) Intensive technical assistance.--A producer that has
completed initial technical assistance under paragraph (1) shall
be eligible to participate in intensive technical assistance.
Such assistance shall consist of--
``(A) a series of courses to further assist the
producer in improving the competitiveness of the
producer in producing--
``(i) the agricultural commodity with respect
to which the producer was certified under this
chapter; or
``(ii) another agricultural commodity; and
``(B) assistance in developing an initial business
plan based on the courses completed under subparagraph
(A).
``(3) Initial business plan.--
``(A) Approval by secretary.--The Secretary shall
approve an initial business plan developed under
paragraph (2)(B) if the plan--
``(i) reflects the skills gained by the
producer through the courses described in
paragraph (2)(A); and
``(ii) demonstrates how the producer will
apply those skills to the circumstances of the
producer.
``(B) Financial assistance for implementing initial
business plan.--Upon approval of the producer's initial
business plan by the Secretary under subparagraph (A), a
producer shall be entitled to an amount not to exceed
$4,000 to--
``(i) implement the initial business plan; or
``(ii) develop a long-term business adjustment
plan under paragraph (4).
``(4) Long-term business adjustment plan.--
``(A) In general.--A producer that has completed
intensive technical assistance under paragraph (2) and
whose initial business plan has been approved under
paragraph (3)(A) shall be eligible for, in addition to
the amount under subparagraph (C), assistance in
developing a long-term business adjustment plan.
``(B) Approval of long-term business adjustment
plans.--The Secretary shall approve a long-term business
adjustment plan developed under subparagraph (A) if the
Secretary determines that the plan--
``(i) includes steps reasonably calculated to
materially contribute to the economic adjustment
of the producer to changing market conditions;
[[Page 123 STAT. 419]]
``(ii) takes into consideration the interests
of the workers employed by the producer; and
``(iii) demonstrates that the producer will
have sufficient resources to implement the
business plan.
``(C) Plan implementation.--Upon approval of the
producer's long-term business adjustment plan under
subparagraph (B), a producer shall be entitled to an
amount not to exceed $8,000 to implement the long-term
business adjustment plan.
``(c) Maximum Amount of Assistance.--An agricultural commodity
producer may receive not more than $12,000 under paragraphs (3) and (4)
of subsection (b) in the 36-month period following certification under
section 293.
``(d) Limitations on Other Assistance.--An agricultural commodity
producer that receives benefits under this chapter (other than initial
technical assistance under subsection (b)(1)) shall not be eligible for
cash benefits under chapter 2 or 3.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 296 and
inserting the following:
``Sec. 296. Qualifying requirements and benefits for agricultural
commodity producers.''.
SEC. 1884. REPORT.
Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended by
adding at the end the following:
``(d) Report by the Secretary.--Not later than January 30, 2010, and
annually thereafter, the Secretary of Agriculture shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report containing the following
information with respect to adjustment assistance provided under this
chapter during the preceding fiscal year:
``(1) A list of the agricultural commodities covered by a
certification under this chapter.
``(2) The States or regions in which such commodities are
produced and the aggregate amount of such commodities produced
in each such State or region.
``(3) The total number of agricultural commodity producers,
by congressional district, receiving benefits under this
chapter.
``(4) The total number of agricultural commodity producers,
by congressional district, receiving technical assistance under
this chapter.''.
SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.
Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1))
is amended by inserting ``or has expended funds received under this
chapter for a purpose that was not approved by the Secretary,'' after
``entitled,''.
SEC. 1886. <<NOTE: 19 USC 2271 note.>> DETERMINATION OF INCREASES OF
IMPORTS FOR CERTAIN FISHERMEN.
For purposes of chapters 2 and 6 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity
producer that--
(1) is a fisherman or aquaculture producer, and
(2) is otherwise eligible for adjustment assistance under
chapter 2 or 6, as the case may be,
[[Page 123 STAT. 420]]
the increase in imports of articles like or directly competitive with
the agricultural commodity produced by such producer may be based on
imports of wild-caught seafood, farm-raised seafood, or both.
SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is
amended by striking ``fiscal years 2003 through 2007'' and all that
follows through the end period and inserting ``fiscal years 2009 and
2010, and $22,500,000 for the period beginning October 1, 2010, and
ending December 31, 2010, to carry out the purposes of this chapter,
including administrative costs, and salaries and expenses of employees
of the Department of Agriculture.''.
PART V--GENERAL PROVISIONS
SEC. 1891. <<NOTE: 19 USC 2271 note.>> EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this subtitle, and
subsection (b) of this section, this subtitle and the amendments made by
this subtitle--
(1) shall take effect upon the expiration of the 90-day
period beginning on the date of the enactment of this Act; and
(2) <<NOTE: Applicability.>> shall apply to--
(A) petitions for certification filed under chapter
2, 3, or 6 of title II of the Trade Act of 1974 on or
after the effective date described in paragraph (1); and
(B) petitions for assistance and proposals for
grants filed under chapter 4 of title II of the Trade
Act of 1974 on or after such effective date.
(b) Certifications Made Before Effective Date.--Notwithstanding
subsection (a)--
(1) a worker shall continue to receive (or be eligible to
receive) trade adjustment assistance and other benefits under
subchapter B of chapter 2 of title II of the Trade Act of 1974,
as in effect on the day before the effective date described in
subsection (a)(1), for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on the
day before such effective date, if the worker--
(A) is certified as eligible for trade adjustment
assistance benefits under such chapter 2 pursuant to a
petition filed under section 221 of the Trade Act of
1974 on or before such effective date; and
(B) would otherwise be eligible to receive trade
adjustment assistance benefits under such chapter as in
effect on the day before such effective date;
(2) a worker shall continue to receive (or be eligible to
receive) benefits under section 246(a)(2) of the Trade Act of
1974, as in effect on the day before the effective date
described in subsection (a)(1), for such period for which the
worker meets the eligibility requirements of section 246 of that
Act as in effect on the day before such effective date, if the
worker--
(A) is certified as eligible for benefits under such
section 246 pursuant to a petition filed under section
221 of the Trade Act of 1974 on or before such effective
date; and
[[Page 123 STAT. 421]]
(B) would otherwise be eligible to receive benefits
under such section 246(a)(2) as in effect on the day
before such effective date; and
(3) a firm shall continue to receive (or be eligible to
receive) adjustment assistance under chapter 3 of title II of
the Trade Act of 1974, as in effect on the day before the
effective date described in subsection (a)(1), for such period
for which the firm meets the eligibility requirements of such
chapter 3 as in effect on the day before such effective date, if
the firm--
(A) is certified as eligible for benefits under such
chapter 3 pursuant to a petition filed under section 251
of the Trade Act of 1974 on or before such effective
date; and
(B) would otherwise be eligible to receive benefits
under such chapter 3 as in effect on the day before such
effective date.
SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS.
(a) For Workers.--Section 245(a) of the Trade Act of 1974 (19 U.S.C.
2317(a)) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2010''.
(b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C.
2271 note prec.) is amended--
(1) in subsection (a), by striking ``December 31, 2007''
each place it appears and inserting ``December 31, 2010''; and
(2) by amending subsection (b) to read as follows:
``(b) Other Assistance.--
``(1) Assistance for firms.--
``(A) In general.--Except as provided in
subparagraph (B), technical assistance and grants may
not be provided under chapter 3 after December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A),
any technical assistance or grant approved under chapter
3 on or before December 31, 2010, may be provided--
``(i) to the extent funds are available
pursuant to such chapter for such purpose; and
``(ii) to the extent the recipient of the
technical assistance or grant is otherwise
eligible to receive such technical assistance or
grant, as the case may be.
``(2) Farmers.--
``(A) In general.--Except as provided in
subparagraph (B), technical assistance and financial
assistance may not be provided under chapter 6 after
December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A),
any technical or financial assistance approved under
chapter 6 on or before December 31, 2010, may be
provided--
``(i) to the extent funds are available
pursuant to such chapter for such purpose; and
``(ii) to the extent the recipient of the
technical or financial assistance is otherwise
eligible to receive such technical or financial
assistance, as the case may be.
``(3) Assistance for communities.--
[[Page 123 STAT. 422]]
``(A) In general.--Except as provided in
subparagraph (B), technical assistance and grants may
not be provided under chapter 4 after December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A),
any technical assistance or grant approved under chapter
4 on or before December 31, 2010, may be provided--
``(i) to the extent funds are available
pursuant to such chapter for such purpose; and
``(ii) to the extent the recipient of the
technical assistance or grant is otherwise
eligible to receive such technical assistance or
grant, as the case may be.''.
SEC. 1893. <<NOTE: 19 USC 2271 note prec.>> TERMINATION; RELATED
PROVISIONS.
(a) Sunset.--
(1) In general.--Subject to paragraph (2), the amendments
made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not
apply on or after January 1, 2011.
(2) Exception.--The amendments made by this subtitle to
section 285 of the Trade Act of 1974 shall continue to apply on
and after January 1, 2011, with respect to--
(A) workers certified as eligible for trade
adjustment assistance benefits under chapter 2 of title
II of that Act pursuant to petitions filed under section
221 of that Act before January 1, 2011;
(B) firms certified as eligible for technical
assistance or grants under chapter 3 of title II of that
Act pursuant to petitions filed under section 251 of
that Act before January 1, 2011;
(C) recipients approved for technical assistance or
grants under chapter 4 of title II of that Act pursuant
to petitions for assistance or proposals for grants (as
the case may be) filed pursuant to such chapter before
January 1, 2011; and
(D) agricultural commodity producers certified as
eligible for technical or financial assistance under
chapter 6 of title II of that Act pursuant to petitions
filed under section 292 of that Act before January 1,
2011.
(b) <<NOTE: Effective date.>> Application of Prior Law.--Chapters
2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271
et seq.) shall be applied and administered beginning January 1, 2011, as
if the amendments made by this subtitle (other than part VI) had never
been enacted, except that in applying and administering such chapters--
(1) section 245 of that Act shall be applied and
administered by substituting ``2011'' for ``2007'';
(2) section 246(b) of that Act shall be applied and
administered by substituting ``December 31, 2011'' for ``the
date that is 5 years'' and all that follows through ``State'';
(3) section 256(b) of that Act shall be applied and
administered by substituting ``the 1-year period beginning
January 1, 2011'' for ``each of fiscal years 2003 through 2007,
and $4,000,000 for the 3-month period beginning October 1,
2007'';
(4) section 298(a) of that Act shall be applied and
administered by substituting ``the 1-year period beginning
January 1, 2011'' for ``each of the fiscal years'' and all that
follows through ``October 1, 2007''; and
[[Page 123 STAT. 423]]
(5) subject to subsection (a)(2), section 285 of that Act
shall be applied and administered--
(A) in subsection (a), by substituting ``2011'' for
``2007'' each place it appears; and
(B) by applying and administering subsection (b) as
if it read as follows:
``(b) Other Assistance.--
``(1) Assistance for firms.--
``(A) In general.--Except as provided in
subparagraph (B), assistance may not be provided under
chapter 3 after December 31, 2011.
``(B) Exception.--Notwithstanding subparagraph (A),
any assistance approved under chapter 3 on or before
December 31, 2011, may be provided--
``(i) to the extent funds are available
pursuant to such chapter for such purpose; and
``(ii) to the extent the recipient of the
assistance is otherwise eligible to receive such
assistance.
``(2) Farmers.--
``(A) In general.--Except as provided in
subparagraph (B), assistance may not be provided under
chapter 6 after December 31, 2011.
``(B) Exception.--Notwithstanding subparagraph (A),
any assistance approved under chapter 6 on or before
December 31, 2011, may be provided--
``(i) to the extent funds are available
pursuant to such chapter for such purpose; and
``(ii) to the extent the recipient of the
assistance is otherwise eligible to receive such
assistance.''.
SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.
Not later than September 30, 2012, the Comptroller General of the
United States shall prepare and submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a comprehensive report on the operation and
effectiveness of the amendments made by this subtitle to chapters 2, 3,
4, and 6 of the Trade Act of 1974.
SEC. 1895. EMERGENCY DESIGNATION.
Amounts appropriated pursuant to this subtitle are designated as an
emergency requirement and necessary to meet emergency needs pursuant to
section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2)
of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the
budget for fiscal years 2008 and 2009.
PART VI-- <<NOTE: TAA Health Coverage Improvement Act of 2009.>> HEALTH
COVERAGE IMPROVEMENT
SEC. 1899. <<NOTE: 26 USC 1 note.>> SHORT TITLE.
This part may be cited as the ``TAA Health Coverage Improvement Act
of 2009''.
SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.
(a) Improvement of Affordability.--
(1) In general.--Section 35(a) of the Internal Revenue Code
of 1986 <<NOTE: 26 USC 35.>> (relating to credit for health
insurance costs of eligible individuals) is amended by inserting
``(80 percent
[[Page 123 STAT. 424]]
in the case of eligible coverage months beginning before January
1, 2011)'' after ``65 percent''.
(2) Conforming amendment.--Section 7527(b) of such
Code <<NOTE: 26 USC 7527.>> (relating to advance payment of
credit for health insurance costs of eligible individuals) is
amended by inserting ``(80 percent in the case of eligible
coverage months beginning before January 1, 2011)'' after ``65
percent''.
(b) <<NOTE: 26 USC 35 note.>> Effective Date.--The amendments made
by this section shall apply to coverage months beginning on or after the
first day of the first month beginning 60 days after the date of the
enactment of this Act.
SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF
ADVANCE PAYMENTS OF CREDIT.
(a) Payment for Premiums Due Prior to Commencement of Advance
Payments of Credit.--Section 7527 of the Internal Revenue Code of 1986
(relating to advance payment of credit for health insurance costs of
eligible individuals) is amended by adding at the end the following new
subsection:
``(e) Payment for Premiums Due Prior to Commencement of Advance
Payments.--In the case of eligible coverage months beginning before
January 1, 2011--
``(1) In general.--The program established under subsection
(a) shall provide that the Secretary shall make 1 or more
retroactive payments on behalf of a certified individual in an
aggregate amount equal to 80 percent of the premiums for
coverage of the taxpayer and qualifying family members under
qualified health insurance for eligible coverage months (as
defined in section 35(b)) occurring prior to the first month for
which an advance payment is made on behalf of such individual
under subsection (a).
``(2) Reduction of payment for amounts received under
national emergency grants.--The amount of any payment determined
under paragraph (1) shall be reduced by the amount of any
payment made to the taxpayer for the purchase of qualified
health insurance under a national emergency grant pursuant to
section 173(f) of the Workforce Investment Act of 1998 for a
taxable year including the eligible coverage months described in
paragraph (1).''.
(b) <<NOTE: 26 USC 7527 note.>> Effective Date.--The amendments
made by this section shall apply to coverage months beginning after
December 31, 2008.
(c) <<NOTE: 26 USC 7527 note.>> Transitional Rule.--The Secretary
of the Treasury shall not be required to make any payments under section
7527(e) of the Internal Revenue Code of 1986, as added by this section,
until after the date that is 6 months after the date of the enactment of
this Act.
SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE
FOR CREDIT.
(a) In General.--Paragraph (2) of section 35(c) of the Internal
Revenue Code of 1986 (defining eligible TAA recipient) is amended to
read as follows:
``(2) Eligible taa recipient.--
``(A) In general.--Except as provided in
subparagraph (B), the term `eligible TAA recipient'
means, with respect to any month, any individual who is
receiving for any day of such month a trade readjustment
allowance under chapter 2 of title II of the Trade Act
of 1974 or who
[[Page 123 STAT. 425]]
would be eligible to receive such allowance if section
231 of such Act were applied without regard to
subsection (a)(3)(B) of such section. An individual
shall continue to be treated as an eligible TAA
recipient during the first month that such individual
would otherwise cease to be an eligible TAA recipient by
reason of the preceding sentence.
``(B) Special rule.--In the case of any eligible
coverage month beginning after the date of the enactment
of this paragraph and before January 1, 2011, the term
`eligible TAA recipient' means, with respect to any
month, any individual who--
``(i) is receiving for any day of such month a
trade readjustment allowance under chapter 2 of
title II of the Trade Act of 1974,
``(ii) would be eligible to receive such
allowance except that such individual is in a
break in training provided under a training
program approved under section 236 of such Act
that exceeds the period specified in section
233(e) of such Act, but is within the period for
receiving such allowances provided under section
233(a) of such Act, or
``(iii) is receiving unemployment compensation
(as defined in section 85(b)) for any day of such
month and who would be eligible to receive such
allowance for such month if section 231 of such
Act were applied without regard to subsections
(a)(3)(B) and (a)(5) thereof.
An individual shall continue to be treated as an
eligible TAA recipient during the first month that such
individual would otherwise cease to be an eligible TAA
recipient by reason of the preceding sentence.''.
(b) <<NOTE: 26 USC 35 note.>> Effective Date.--The amendment made
by this section shall apply to coverage months beginning after the date
of the enactment of this Act.
SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF
DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE
COVERAGE.
(a) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code
of 1986 <<NOTE: 26 USC 9801.>> (relating to not counting periods before
significant breaks in creditable coverage) is amended by adding at the
end the following new subparagraph:
``(D) TAA-eligible individuals.--In the case of plan
years beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In
the case of a TAA-eligible individual, the period
beginning on the date the individual has a TAA-
related loss of coverage and ending on the date
which is 7 days after the date of the issuance by
the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for
such individual for purposes of section 7527 shall
not be taken into account in determining the
continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage'
have the
[[Page 123 STAT. 426]]
meanings given such terms in section
4980B(f)(5)(C)(iv).''.
(b) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding
at the end the following new subparagraph:
``(C) TAA-eligible individuals.--In the case of plan
years beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In
the case of a TAA-eligible individual, the period
beginning on the date the individual has a TAA-
related loss of coverage and ending on the date
that is 7 days after the date of the issuance by
the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for
such individual for purposes of section 7527 of
the Internal Revenue Code of 1986 shall not be
taken into account in determining the continuous
period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage'
have the meanings given such terms in section
605(b)(4).''.
(c) PHSA Amendment.--Section 2701(c)(2) of the Public Health Service
Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the
following new subparagraph:
``(C) TAA-eligible individuals.--In the case of plan
years beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In
the case of a TAA-eligible individual, the period
beginning on the date the individual has a TAA-
related loss of coverage and ending on the date
that is 7 days after the date of the issuance by
the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for
such individual for purposes of section 7527 of
the Internal Revenue Code of 1986 shall not be
taken into account in determining the continuous
period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage'
have the meanings given such terms in section
2205(b)(4).''.
(d) <<NOTE: 26 USC 9801 note.>> Effective Date.--The amendments
made by this section shall apply to plan years beginning after the date
of the enactment of this Act.
SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN
EVENTS.
(a) In General.--Subsection (g) of section 35 <<NOTE: 26 USC
35.>> of such Code is amended by redesignating paragraph (9) as
paragraph (10) and inserting after paragraph (8) the following new
paragraph:
``(9) Continued qualification of family members after
certain events.--In the case of eligible coverage months
beginning before January 1, 2011--
``(A) Medicare eligibility.--In the case of any
month which would be an eligible coverage month with
respect to an eligible individual but for subsection
(f)(2)(A), such month shall be treated as an eligible
coverage month with respect to such eligible individual
solely for purposes of
[[Page 123 STAT. 427]]
determining the amount of the credit under this section
with respect to any qualifying family members of such
individual (and any advance payment of such credit under
section 7527). This subparagraph shall only apply with
respect to the first 24 months after such eligible
individual is first entitled to the benefits described
in subsection (f)(2)(A).
``(B) Divorce.--In the case of the finalization of a
divorce between an eligible individual and such
individual's spouse, such spouse shall be treated as an
eligible individual for purposes of this section and
section 7527 for a period of 24 months beginning with
the date of such finalization, except that the only
qualifying family members who may be taken into account
with respect to such spouse are those individuals who
were qualifying family members immediately before such
finalization.
``(C) Death.--In the case of the death of an
eligible individual--
``(i) any spouse of such individual
(determined at the time of such death) shall be
treated as an eligible individual for purposes of
this section and section 7527 for a period of 24
months beginning with the date of such death,
except that the only qualifying family members who
may be taken into account with respect to such
spouse are those individuals who were qualifying
family members immediately before such death, and
``(ii) any individual who was a qualifying
family member of the decedent immediately before
such death (or, in the case of an individual to
whom paragraph (4) applies, the taxpayer to whom
the deduction under section 151 is allowable)
shall be treated as an eligible individual for
purposes of this section and section 7527 for a
period of 24 months beginning with the date of
such death, except that in determining the amount
of such credit only such qualifying family member
may be taken into account.''.
(b) Conforming Amendment.--Section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the
end the following:
``(8) Continued qualification of family members after
certain events.--In the case of eligible coverage months
beginning before January 1, 2011--
``(A) Medicare eligibility.--In the case of any
month which would be an eligible coverage month with
respect to an eligible individual but for paragraph
(7)(B)(i), such month shall be treated as an eligible
coverage month with respect to such eligible individual
solely for purposes of determining the eligibility of
qualifying family members of such individual under this
subsection. <<NOTE: Applicability.>> This subparagraph
shall only apply with respect to the first 24 months
after such eligible individual is first entitled to the
benefits described in paragraph (7)(B)(i).
``(B) Divorce.--In the case of the finalization of a
divorce between an eligible individual and such
individual's spouse, such spouse shall be treated as an
eligible individual for purposes of this subsection for
a period of 24
[[Page 123 STAT. 428]]
months beginning with the date of such finalization,
except that the only qualifying family members who may
be taken into account with respect to such spouse are
those individuals who were qualifying family members
immediately before such finalization.
``(C) Death.--In the case of the death of an
eligible individual--
``(i) any spouse of such individual
(determined at the time of such death) shall be
treated as an eligible individual for purposes of
this subsection for a period of 24 months
beginning with the date of such death, except that
the only qualifying family members who may be
taken into account with respect to such spouse are
those individuals who were qualifying family
members immediately before such death, and
``(ii) any individual who was a qualifying
family member of the decedent immediately before
such death shall be treated as an eligible
individual for purposes this subsection for a
period of 24 months beginning with the date of
such death, except that no qualifying family
members may be taken into account with respect to
such individual.''.
(c) <<NOTE: 26 USC 35 note.>> Effective Date.--The amendments made
by this section shall apply to months beginning after December 31, 2009.
SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE
INDIVIDUALS AND PBGC RECIPIENTS.
(a) ERISA Amendments.--Section 602(2)(A) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
(1) by moving clause (v) to after clause (iv) and before the
flush left sentence beginning with ``In the case of a qualified
beneficiary'';
(2) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(vi) Special rule for disability.--In the
case of a qualified beneficiary''; and
(3) by redesignating clauses (v) and (vi), as amended by
paragraphs (1) and (2), as clauses (vii) and (viii),
respectively, and by inserting after clause (iv) the following
new clauses:
``(v) Special rule for pbgc recipients.--In
the case of a qualifying event described in
section 603(2) with respect to a covered employee
who (as of such qualifying event) has a
nonforfeitable right to a benefit any portion of
which is to be paid by the Pension Benefit
Guaranty Corporation under title IV,
notwithstanding clause (i) or (ii), the date of
the death of the covered employee, or in the case
of the surviving spouse or dependent children of
the covered employee, 24 months after the date of
the death of the covered employee. The preceding
sentence shall not require any period of coverage
to extend beyond December 31, 2010.
``(vi) Special rule for taa-eligible
individuals.--In the case of a qualifying event
described in section 603(2) with respect to a
covered employee who is (as of the date that the
period of coverage would,
[[Page 123 STAT. 429]]
but for this clause or clause (vii), otherwise
terminate under clause (i) or (ii)) a TAA-eligible
individual (as defined in section 605(b)(4)(B)),
the period of coverage shall not terminate by
reason of clause (i) or (ii), as the case may be,
before the later of the date specified in such
clause or the date on which such individual ceases
to be such a TAA-eligible individual. The
preceding sentence shall not require any period of
coverage to extend beyond December 31, 2010.''.
(b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 4980B.>> is amended--
(1) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(VI) Special rule for
disability.--In the case of a qualified
beneficiary'', and
(2) by redesignating subclauses (V) and (VI), as amended by
paragraph (1), as subclauses (VII) and (VIII), respectively, and
by inserting after clause (IV) the following new subclauses:
``(V) Special rule for pbgc
recipients.--In the case of a qualifying
event described in paragraph (3)(B) with
respect to a covered employee who (as of
such qualifying event) has a
nonforfeitable right to a benefit any
portion of which is to be paid by the
Pension Benefit Guaranty Corporation
under title IV of the Employee
Retirement Income Security Act of 1974,
notwithstanding subclause (I) or (II),
the date of the death of the covered
employee, or in the case of the
surviving spouse or dependent children
of the covered employee, 24 months after
the date of the death of the covered
employee. The preceding sentence shall
not require any period of coverage to
extend beyond December 31, 2010.
``(VI) Special rule for taa-eligible
individuals.--In the case of a
qualifying event described in paragraph
(3)(B) with respect to a covered
employee who is (as of the date that the
period of coverage would, but for this
subclause or subclause (VII), otherwise
terminate under subclause (I) or (II)) a
TAA-eligible individual (as defined in
paragraph (5)(C)(iv)(II)), the period of
coverage shall not terminate by reason
of subclause (I) or (II), as the case
may be, before the later of the date
specified in such subclause or the date
on which such individual ceases to be
such a TAA-eligible individual. The
preceding sentence shall not require any
period of coverage to extend beyond
December 31, 2010.''.
(c) PHSA Amendments.--Section 2202(2)(A) of the Public Health
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
(1) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(v) Special rule for disability.--In the
case of a qualified beneficiary''; and
(2) by redesignating clauses (iv) and (v), as amended by
paragraph (1), as clauses (v) and (vi), respectively, and by
inserting after clause (iii) the following new clause:
[[Page 123 STAT. 430]]
``(iv) Special rule for taa-eligible
individuals.--In the case of a qualifying event
described in section 2203(2) with respect to a
covered employee who is (as of the date that the
period of coverage would, but for this clause or
clause (v), otherwise terminate under clause (i)
or (ii)) a TAA-eligible individual (as defined in
section 2205(b)(4)(B)), the period of coverage
shall not terminate by reason of clause (i) or
(ii), as the case may be, before the later of the
date specified in such clause or the date on which
such individual ceases to be such a TAA-eligible
individual. The preceding sentence shall not
require any period of coverage to extend beyond
December 31, 2010.''.
(d) <<NOTE: 26 USC 4980B note.>> Effective Date.--The amendments
made by this section shall apply to periods of coverage which would
(without regard to the amendments made by this section) end on or after
the date of the enactment of this Act.
SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES'
BENEFICIARY ASSOCIATIONS.
(a) In General.--Paragraph (1) of section 35(e) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 35.>> is amended by adding at the
end the following new subparagraph:
``(K) In the case of eligible coverage months
beginning before January 1, 2011, coverage under an
employee benefit plan funded by a voluntary employees'
beneficiary association (as defined in section
501(c)(9)) established pursuant to an order of a
bankruptcy court, or by agreement with an authorized
representative, as provided in section 1114 of title 11,
United States Code.''.
(b) <<NOTE: 26 USC 35 note.>> Effective Date.--The amendments made
by this section shall apply to coverage months beginning after the date
of the enactment of this Act.
SEC. 1899H. NOTICE REQUIREMENTS.
(a) In General.--Subsection (d) of section 7527 of the Internal
Revenue Code of 1986 (relating to qualified health insurance costs
credit eligibility certificate) is amended to read as follows:
``(d) Qualified Health Insurance Costs Eligibility Certificate.--
``(1) In general.--For purposes of this section, the term
`qualified health insurance costs eligibility certificate' means
any written statement that an individual is an eligible
individual (as defined in section 35(c)) if such statement
provides such information as the Secretary may require for
purposes of this section and--
``(A) in the case of an eligible TAA recipient (as
defined in section 35(c)(2)) or an eligible alternative
TAA recipient (as defined in section 35(c)(3)), is
certified by the Secretary of Labor (or by any other
person or entity designated by the Secretary), or
``(B) in the case of an eligible PBGC pension
recipient (as defined in section 35(c)(4)), is certified
by the Pension Benefit Guaranty Corporation (or by any
other person or entity designated by the Secretary).
``(2) Inclusion of certain information.--In the case of any
statement described in paragraph (1) which is issued before
January 1, 2011, such statement shall not be treated as a
[[Page 123 STAT. 431]]
qualified health insurance costs credit eligibility certificate
unless such statement includes--
``(A) the name, address, and telephone number of the
State office or offices responsible for providing the
individual with assistance with enrollment in qualified
health insurance (as defined in section 35(e)),
``(B) a list of the coverage options that are
treated as qualified health insurance (as so defined) by
the State in which the individual resides, and
``(C) in the case of a TAA-eligible individual (as
defined in section 4980B(f)(5)(C)(iv)(II)), a statement
informing the individual that the individual has 63 days
from the date that is 7 days after the date of the
issuance of such certificate to enroll in such insurance
without a lapse in creditable coverage (as defined in
section 9801(c)).''.
(b) <<NOTE: 26 USC 7527 note.>> Effective Date.--The amendment made
by this section shall apply to certificates issued after the date that
is 6 months after the date of the enactment of this Act.
SEC. 1899I. <<NOTE: 26 USC 35 note.>> SURVEY AND REPORT ON ENHANCED
HEALTH COVERAGE TAX CREDIT PROGRAM.
(a) Survey.--
(1) In general.--The Secretary of the Treasury shall conduct
a biennial survey of eligible individuals (as defined in section
35(c) of the Internal Revenue Code of 1986) relating to the
health coverage tax credit under section 35 of the Internal
Revenue Code of 1986 (hereinafter in this section referred to as
the ``health coverage tax credit'').
(2) Information obtained.--The survey conducted under
subsection (a) shall obtain the following information:
(A) HCTC participants.--In the case of eligible
individuals receiving the health coverage tax credit
(including individuals participating in the health
coverage tax credit program under section 7527 of such
Code, hereinafter in this section referred to as the
``HCTC program'')--
(i) demographic information of such
individuals, including income and education
levels,
(ii) satisfaction of such individuals with the
enrollment process in the HCTC program,
(iii) satisfaction of such individuals with
available health coverage options under the
credit, including level of premiums, benefits,
deductibles, cost-sharing requirements, and the
adequacy of provider networks, and
(iv) any other information that the Secretary
determines is appropriate.
(B) Non-HCTC participants.--In the case of eligible
individuals not receiving the health coverage tax
credit--
(i) demographic information of each
individual, including income and education levels,
(ii) whether the individual was aware of the
health coverage tax credit or the HCTC program,
(iii) the reasons the individual has not
enrolled in the HCTC program, including whether
such reasons include the burden of the process of
enrollment and the affordability of coverage,
[[Page 123 STAT. 432]]
(iv) whether the individual has health
insurance coverage, and, if so, the source of such
coverage, and
(v) any other information that the Secretary
determines is appropriate.
(3) Report.--Not later than December 31 of each year in
which a survey is conducted under paragraph (1) (beginning in
2010), the Secretary of the Treasury shall report to the
Committee on Finance and the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Ways and
Means, the Committee on Education and Labor, and the Committee
on Energy and Commerce of the House of Representatives the
findings of the most recent survey conducted under paragraph
(1).
(b) Report.--Not later than October 1 of each year (beginning in
2010), the Secretary of the Treasury (after consultation with the
Secretary of Health and Human Services, and, in the case of the
information required under paragraph (7), the Secretary of Labor) shall
report to the Committee on Finance and the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on Ways
and Means, the Committee on Education and Labor, and the Committee on
Energy and Commerce of the House of Representatives the following
information with respect to the most recent taxable year ending before
such date:
(1) In each State and nationally--
(A) the total number of eligible individuals (as
defined in section 35(c) of the Internal Revenue Code of
1986) and the number of eligible individuals receiving
the health coverage tax credit,
(B) the total number of such eligible individuals
who receive an advance payment of the health coverage
tax credit through the HCTC program,
(C) the average length of the time period of the
participation of eligible individuals in the HCTC
program, and
(D) the total number of participating eligible
individuals in the HCTC program who are enrolled in each
category of coverage as described in section 35(e)(1) of
such Code,
with respect to each category of eligible individuals described
in section 35(c)(1) of such Code.
(2) In each State and nationally, an analysis of--
(A) the range of monthly health insurance premiums,
for self-only coverage and for family coverage, for
individuals receiving the health coverage tax credit,
and
(B) the average and median monthly health insurance
premiums, for self-only coverage and for family
coverage, for individuals receiving the health coverage
tax credit,
with respect to each category of coverage as described in
section 35(e)(1) of such Code.
(3) In each State and nationally, an analysis of the
following information with respect to the health insurance
coverage of individuals receiving the health coverage tax credit
who are enrolled in coverage described in subparagraphs (B)
through (H) of section 35(e)(1) of such Code:
(A) Deductible amounts.
(B) Other out-of-pocket cost-sharing amounts.
[[Page 123 STAT. 433]]
(C) A description of any annual or lifetime limits
on coverage or any other significant limits on coverage
services, or benefits.
The information required under this paragraph shall be reported
with respect to each category of coverage described in such
subparagraphs.
(4) In each State and nationally, the gender and average age
of eligible individuals (as defined in section 35(c) of such
Code) who receive the health coverage tax credit, in each
category of coverage described in section 35(e)(1) of such Code,
with respect to each category of eligible individuals described
in such section.
(5) The steps taken by the Secretary of the Treasury to
increase the participation rates in the HCTC program among
eligible individuals, including outreach and enrollment
activities.
(6) The cost of administering the HCTC program by function,
including the cost of subcontractors, and recommendations on
ways to reduce administrative costs, including recommended
statutory changes.
(7) The number of States applying for and receiving national
emergency grants under section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)), the activities
funded by such grants on a State-by-State basis, and the time
necessary for application approval of such grants.
SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $80,000,000 for the period of
fiscal years 2009 through 2010 to implement the amendments made by, and
the provisions of, sections 1899 through 1899I of this part.
SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS.
(a) In General.--Section 173(f) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Use of funds.--
``(A) Health insurance coverage for eligible
individuals in order to obtain qualified health
insurance that has guaranteed issue and other consumer
protections.--Funds made available to a State or entity
under paragraph (4)(A) of subsection (a) may be used to
provide an eligible individual described in paragraph
(4)(C) and such individual's qualifying family members
with health insurance coverage for the 3-month period
that immediately precedes the first eligible coverage
month (as defined in section 35(b) of the Internal
Revenue Code of 1986) in which such eligible individual
and such individual's qualifying family members are
covered by qualified health insurance that meets the
requirements described in clauses (i) through (v) of
section 35(e)(2)(A) of the Internal Revenue Code of 1986
(or such longer minimum period as is necessary in order
for such eligible individual and such individual's
qualifying family members to be covered by qualified
health insurance that meets such requirements).
[[Page 123 STAT. 434]]
``(B) Additional uses.--Funds made available to a
State or entity under paragraph (4)(A) of subsection (a)
may be used by the State or entity for the following:
``(i) Health insurance coverage.--To assist an
eligible individual and such individual's
qualifying family members with enrolling in health
insurance coverage and qualified health insurance
or paying premiums for such coverage or insurance.
``(ii) Administrative expenses and start-up
expenses to establish group health plan coverage
options for qualified health insurance.--To pay
the administrative expenses related to the
enrollment of eligible individuals and such
individuals' qualifying family members in health
insurance coverage and qualified health insurance,
including--
``(I) eligibility verification
activities;
``(II) the notification of eligible
individuals of available health
insurance and qualified health insurance
options;
``(III) processing qualified health
insurance costs credit eligibility
certificates provided for under section
7527 of the Internal Revenue Code of
1986;
``(IV) providing assistance to
eligible individuals in enrolling in
health insurance coverage and qualified
health insurance;
``(V) the development or
installation of necessary data
management systems; and
``(VI) any other expenses determined
appropriate by the Secretary, including
start-up costs and on going
administrative expenses, in order for
the State to treat the coverage
described in subparagraphs (C) through
(H) of section 35(e)(1) of the Internal
Revenue Code of 1986 as qualified health
insurance under that section.
``(iii) Outreach.--To pay for outreach to
eligible individuals to inform such individuals of
available health insurance and qualified health
insurance options, including outreach consisting
of notice to eligible individuals of such options
made available after the date of enactment of this
clause and direct assistance to help potentially
eligible individuals and such individual's
qualifying family members qualify and remain
eligible for the credit established under section
35 of the Internal Revenue Code of 1986 and
advance payment of such credit under section 7527
of such Code.
``(iv) Bridge funding.--To assist potentially
eligible individuals to purchase qualified health
insurance coverage prior to issuance of a
qualified health insurance costs credit
eligibility certificate under section 7527 of the
Internal Revenue Code of 1986 and commencement of
advance payment, and receipt of expedited payment,
under subsections (a) and (e), respectively, of
that section.
``(C) Rule of construction.--The inclusion of a
permitted use under this paragraph shall not be
construed
[[Page 123 STAT. 435]]
as prohibiting a similar use of funds permitted under
subsection (g).''; and
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Qualified health insurance.--For purposes of this
subsection and subsection (g), the term `qualified health
insurance' has the meaning given that term in section 35(e) of
the Internal Revenue Code of 1986.''.
(b) Funding.--Section 174(c)(1) of the Workforce Investment Act of
1998 (29 U.S.C. 2919(c)(1)) is amended--
(1) in the paragraph heading, by striking ``Authorization
and appropriation for fiscal year 2002'' and inserting
``Appropriations''; and
(2) by striking subparagraph (A) and inserting the following
new subparagraph:
``(A) to carry out subsection (a)(4)(A) of section
173--
``(i) $10,000,000 for fiscal year 2002; and
``(ii) $150,000,000 for the period of fiscal
years 2009 through 2010; and''.
SEC. 1899L. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
conduct a study regarding the health insurance tax credit allowed under
section 35 of the Internal Revenue Code of 1986.
(b) Report.--Not later than March 1, 2010, the Comptroller General
shall submit a report to Congress regarding the results of the study
conducted under subsection (a). Such report shall include an analysis
of--
(1) the administrative costs--
(A) of the Federal Government with respect to such
credit and the advance payment of such credit under
section 7527 of such Code, and
(B) of providers of qualified health insurance with
respect to providing such insurance to eligible
individuals and their qualifying family members,
(2) the health status and relative risk status of eligible
individuals and qualifying family members covered under such
insurance,
(3) participation in such credit and the advance payment of
such credit by eligible individuals and their qualifying family
members, including the reasons why such individuals did or did
not participate and the effect of the amendments made by this
part on such participation, and
(4) the extent to which eligible individuals and their
qualifying family members--
(A) obtained health insurance other than qualifying
health insurance, or
(B) went without health insurance coverage.
(c) Access to Records.--For purposes of conducting the study
required under this section, the Comptroller General and any of his duly
authorized representatives shall have access to, and the right to
examine and copy, all documents, records, and other recorded
information--
(1) within the possession or control of providers of
qualified health insurance, and
(2) determined by the Comptroller General (or any such
representative) to be relevant to the study.
[[Page 123 STAT. 436]]
The Comptroller General shall not disclose the identity of any provider
of qualified health insurance or any eligible individual in making any
information obtained under this section available to the public.
(d) Definitions.--Any term which is defined in section 35 of the
Internal Revenue Code of 1986 shall have the same meaning when used in
this section.
TITLE II-- <<NOTE: Assistance for Unemployed Workers and Struggling
Families Act.>> ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
FAMILIES
SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.`
(a) Short Title.-- <<NOTE: 26 USC 1 note.>> This title may be cited
as the ``Assistance for Unemployed Workers and Struggling Families
Act''.
(b) Table of Contents of Title.--The table of contents of this title
is as follows:
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
Sec. 2000. Short title; table of contents of title.
Subtitle A--Unemployment Insurance
Sec. 2001. Extension of emergency unemployment compensation program.
Sec. 2002. Increase in unemployment compensation benefits.
Sec. 2003. Special transfers for unemployment compensation
modernization.
Sec. 2004. Temporary assistance for states with advances.
Sec. 2005. Full Federal funding of extended unemployment compensation
for a limited period.
Sec. 2006. Temporary increase in extended unemployment benefits under
the Railroad Unemployment Insurance Act.
Subtitle B--Assistance for Vulnerable Individuals
Sec. 2101. Emergency fund for TANF program.
Sec. 2102. Extension of TANF supplemental grants.
Sec. 2103. Clarification of authority of States to use TANF funds
carried over from prior years to provide TANF benefits and
services.
Sec. 2104. Temporary resumption of prior child support law.
Subtitle C--Economic Recovery Payments to Certain Individuals
Sec. 2201. Economic recovery payment to recipients of social security,
supplemental security income, railroad retirement benefits,
and veterans disability compensation or pension benefits.
Sec. 2202. Special credit for certain government retirees.
Subtitle A--Unemployment Insurance
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
section 4 of the Unemployment Compensation Extension Act of 2008 (Public
Law 110-449; 122 Stat. 5015), is amended--
(1) by striking ``March 31, 2009'' each place it appears and
inserting ``December 31, 2009'';
(2) in the heading for subsection (b)(2), by striking
``march 31, 2009'' and inserting ``december 31, 2009''; and
(3) in subsection (b)(3), by striking ``August 27, 2009''
and inserting ``May 31, 2010''.
[[Page 123 STAT. 437]]
(b) Financing Provisions.--Section 4004 of such Act <<NOTE: 26 USC
3304 note.>> is amended by adding at the end the following:
``(e) Transfer of Funds.--Notwithstanding any other provision of
law, the Secretary of the Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise appropriated)--
``(1) to the extended unemployment compensation account (as
established by section 905 of the Social Security Act) such sums
as the Secretary of Labor estimates to be necessary to make
payments to States under this title by reason of the amendments
made by section 2001(a) of the Assistance for Unemployed Workers
and Struggling Families Act; and
``(2) to the employment security administration account (as
established by section 901 of the Social Security Act) such sums
as the Secretary of Labor estimates to be necessary for purposes
of assisting States in meeting administrative costs by reason of
the amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury, without
fiscal year limitation, the sums referred to in the preceding sentence
and such sums shall not be required to be repaid.''.
SEC. 2002. <<NOTE: 26 USC 3304 note.>> INCREASE IN UNEMPLOYMENT
COMPENSATION BENEFITS.
(a) Federal-State Agreements.--Any State which desires to do so may
enter into and participate in an agreement under this section with the
Secretary of Labor (hereinafter in this section referred to as the
``Secretary''). <<NOTE: Notification.>> Any State which is a party to an
agreement under this section may, upon providing 30 days' written notice
to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) Additional compensation.--Any agreement under this
section shall provide that the State agency of the State will
make payments of regular compensation to individuals in amounts
and to the extent that they would be determined if the State law
of the State were applied, with respect to any week for which
the individual is (disregarding this section) otherwise entitled
under the State law to receive regular compensation, as if such
State law had been modified in a manner such that the amount of
regular compensation (including dependents' allowances) payable
for any week shall be equal to the amount determined under the
State law (before the application of this paragraph) plus an
additional $25.
(2) Allowable methods of payment.--Any additional
compensation provided for in accordance with paragraph (1) shall
be payable either--
(A) as an amount which is paid at the same time and
in the same manner as any regular compensation otherwise
payable for the week involved; or
(B) at the option of the State, by payments which
are made separately from, but on the same weekly basis
as, any regular compensation otherwise payable.
(c) Nonreduction Rule.--An agreement under this section shall not
apply (or shall cease to apply) with respect to a State upon a
determination by the Secretary that the method governing the computation
of regular compensation under the State law of that State has been
modified in a manner such that--
(1) the average weekly benefit amount of regular
compensation which will be payable during the period of the
agreement (determined disregarding any additional amounts
attributable
[[Page 123 STAT. 438]]
to the modification described in subsection (b)(1)) will be less
than
(2) the average weekly benefit amount of regular
compensation which would otherwise have been payable during such
period under the State law, as in effect on December 31, 2008.
(d) Payments to States.--
(1) In general.--
(A) Full reimbursement.--There shall be paid to each
State which has entered into an agreement under this
section an amount equal to 100 percent of--
(i) the total amount of additional
compensation (as described in subsection (b)(1))
paid to individuals by the State pursuant to such
agreement; and
(ii) any additional administrative expenses
incurred by the State by reason of such agreement
(as determined by the Secretary).
(B) Terms of payments.--Sums payable to any State by
reason of such State's having an agreement under this
section shall be payable, either in advance or by way of
reimbursement (as determined by the Secretary), in such
amounts as the Secretary estimates the State will be
entitled to receive under this section for each calendar
month, reduced or increased, as the case may be, by any
amount by which the Secretary finds that his estimates
for any prior calendar month were greater or less than
the amounts which should have been paid to the State.
Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed
upon by the Secretary and the State agency of the State
involved.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(3) Appropriation.--There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such sums
as may be necessary for purposes of this subsection.
(e) Applicability.--
(1) <<NOTE: Time period.>> In general.--An agreement
entered into under this section shall apply to weeks of
unemployment--
(A) beginning after the date on which such agreement
is entered into; and
(B) ending before January 1, 2010.
(2) Transition rule for individuals remaining entitled to
regular compensation as of january 1, 2010.--In the case of any
individual who, as of the date specified in paragraph (1)(B),
has not yet exhausted all rights to regular compensation under
the State law of a State with respect to a benefit year that
began before such date, additional compensation (as described in
subsection (b)(1)) shall continue to be payable to such
individual for any week beginning on or after such date for
which the individual is otherwise eligible for regular
compensation with respect to such benefit year.
(3) Termination.--Notwithstanding any other provision of
this subsection, no additional compensation (as described in
subsection (b)(1)) shall be payable for any week beginning after
June 30, 2010.
(f) <<NOTE: Applicability.>> Fraud and Overpayments.--The
provisions of section 4005 of the Supplemental Appropriations Act, 2008
(Public Law 110-
[[Page 123 STAT. 439]]
252; 122 Stat. 2356) shall apply with respect to additional compensation
(as described in subsection (b)(1)) to the same extent and in the same
manner as in the case of emergency unemployment compensation.
(g) Application to Other Unemployment Benefits.--
(1) In general.--Each agreement under this section shall
include provisions to provide that the purposes of the preceding
provisions of this section shall be applied with respect to
unemployment benefits described in subsection (i)(3) to the same
extent and in the same manner as if those benefits were regular
compensation.
(2) Eligibility and termination rules.--Additional
compensation (as described in subsection (b)(1))--
(A) shall not be payable, pursuant to this
subsection, with respect to any unemployment benefits
described in subsection (i)(3) for any week beginning on
or after the date specified in subsection (e)(1)(B),
except in the case of an individual who was eligible to
receive additional compensation (as so described) in
connection with any regular compensation or any
unemployment benefits described in subsection (i)(3) for
any period of unemployment ending before such date; and
(B) shall in no event be payable for any week
beginning after the date specified in subsection (e)(3).
(h) Disregard of Additional Compensation for Purposes of Medicaid
and SCHIP.--The monthly equivalent of any additional compensation paid
under this section shall be disregarded in considering the amount of
income of an individual for any purposes under title XIX and title XXI
of the Social Security Act.
(i) Definitions.--For purposes of this section--
(1) the terms ``compensation'', ``regular compensation'',
``benefit year'', ``State'', ``State agency'', ``State law'',
and ``week'' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note);
(2) the term ``emergency unemployment compensation'' means
emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 122
Stat. 2353); and
(3) any reference to unemployment benefits described in this
paragraph shall be considered to refer to--
(A) extended compensation (as defined by section 205
of the Federal-State Extended Unemployment Compensation
Act of 1970); and
(B) unemployment compensation (as defined by section
85(b) of the Internal Revenue Code of 1986) provided
under any program administered by a State under an
agreement with the Secretary.
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION
MODERNIZATION.
(a) In General.--Section 903 of the Social Security Act (42 U.S.C.
1103) is amended by adding at the end the following:
[[Page 123 STAT. 440]]
``Special Transfers in Fiscal Years 2009, 2010, and 2011 for
Modernization
``(f)(1)(A) In addition to any other amounts, the Secretary of Labor
shall provide for the making of unemployment compensation modernization
incentive payments (hereinafter `incentive payments') to the accounts of
the States in the Unemployment Trust Fund, by transfer from amounts
reserved for that purpose in the Federal unemployment account, in
accordance with succeeding provisions of this subsection.
``(B) The maximum incentive payment allowable under this subsection
with respect to any State shall, as determined by the Secretary of
Labor, be equal to the amount obtained by multiplying $7,000,000,000 by
the same ratio as would apply under subsection (a)(2)(B) for purposes of
determining such State's share of any excess amount (as described in
subsection (a)(1)) that would have been subject to transfer to State
accounts, as of October 1, 2008, under the provisions of subsection (a).
``(C) Of the maximum incentive payment determined under subparagraph
(B) with respect to a State--
``(i) one-third shall be transferred to the account of such
State upon a certification under paragraph (4)(B) that the State
law of such State meets the requirements of paragraph (2); and
``(ii) the remainder shall be transferred to the account of
such State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph (3).
``(2) The State law of a State meets the requirements of this
paragraph if such State law--
``(A) uses a base period that includes the most recently
completed calendar quarter before the start of the benefit year
for purposes of determining eligibility for unemployment
compensation; or
``(B) provides that, in the case of an individual who would
not otherwise be eligible for unemployment compensation under
the State law because of the use of a base period that does not
include the most recently completed calendar quarter before the
start of the benefit year, eligibility shall be determined using
a base period that includes such calendar quarter.
``(3) The State law of a State meets the requirements of this
paragraph if such State law includes provisions to carry out at least 2
of the following subparagraphs:
``(A) An individual shall not be denied regular unemployment
compensation under any State law provisions relating to
availability for work, active search for work, or refusal to
accept work, solely because such individual is seeking only
part-time work (as defined by the Secretary of Labor), except
that the State law provisions carrying out this subparagraph may
exclude an individual if a majority of the weeks of work in such
individual's base period do not include part-time work (as so
defined).
``(B) An individual shall not be disqualified from regular
unemployment compensation for separating from employment if that
separation is for any compelling family reason. For purposes of
this subparagraph, the term `compelling family reason' means the
following:
[[Page 123 STAT. 441]]
``(i) Domestic violence, verified by such reasonable
and confidential documentation as the State law may
require, which causes the individual reasonably to
believe that such individual's continued employment
would jeopardize the safety of the individual or of any
member of the individual's immediate family (as defined
by the Secretary of Labor).
``(ii) The illness or disability of a member of the
individual's immediate family (as those terms are
defined by the Secretary of Labor).
``(iii) The need for the individual to accompany
such individual's spouse--
``(I) to a place from which it is impractical
for such individual to commute; and
``(II) due to a change in location of the
spouse's employment.
``(C)(i) Weekly unemployment compensation is payable under
this subparagraph to any individual who is unemployed (as
determined under the State unemployment compensation law), has
exhausted all rights to regular unemployment compensation under
the State law, and is enrolled and making satisfactory progress
in a State-approved training program or in a job training
program authorized under the Workforce Investment Act of 1998,
except that such compensation is not required to be paid to an
individual who is receiving similar stipends or other training
allowances for non-training costs.
``(ii) Each State-approved training program or job training
program referred to in clause (i) shall prepare individuals who
have been separated from a declining occupation, or who have
been involuntarily and indefinitely separated from employment as
a result of a permanent reduction of operations at the
individual's place of employment, for entry into a high-demand
occupation.
``(iii) The amount of unemployment compensation payable
under this subparagraph to an individual for a week of
unemployment shall be equal to--
``(I) the individual's average weekly benefit amount
(including dependents' allowances) for the most recent
benefit year, less
``(II) any deductible income, as determined under
State law.
The total amount of unemployment compensation payable under this
subparagraph to any individual shall be equal to at least 26
times the individual's average weekly benefit amount (including
dependents' allowances) for the most recent benefit year.
``(D) Dependents' allowances are provided, in the case of
any individual who is entitled to receive regular unemployment
compensation and who has any dependents (as defined by State
law), in an amount equal to at least $15 per dependent per week,
subject to any aggregate limitation on such allowances which the
State law may establish (but which aggregate limitation on the
total allowance for dependents paid to an individual may not be
less than $50 for each week of unemployment or 50 percent of the
individual's weekly benefit amount for the benefit year,
whichever is less), except that a State law may provide for a
reasonable reduction in the amount of any such allowance for a
week of less than total unemployment.
[[Page 123 STAT. 442]]
``(4)(A) <<NOTE: Application. Deadline.>> Any State seeking an
incentive payment under this subsection shall submit an application
therefor at such time, in such manner, and complete with such
information as the Secretary of Labor may within 60 days after the date
of the enactment of this subsection prescribe (whether by regulation or
otherwise), including information relating to compliance with the
requirements of paragraph (2) or (3), as well as how the State intends
to use the incentive payment to improve or strengthen the State's
unemployment compensation program. <<NOTE: Deadline. Notification.>> 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) <<NOTE: Certifications.>> If the Secretary of Labor finds
that the State law provisions (disregarding any State law provisions
which are not then currently in effect as permanent law or which are
subject to discontinuation) meet the requirements of paragraph (2) or
(3), as the case may be, the Secretary of Labor shall thereupon make a
certification to that effect to the Secretary of the Treasury, together
with a certification as to the amount of the incentive payment to be
transferred to the State account pursuant to that
finding. <<NOTE: Deadline.>> The Secretary of the Treasury shall make
the appropriate transfer within 7 days after receiving such
certification.
``(ii) <<NOTE: Effective date.>> For purposes of clause (i), State
law provisions which are to take effect within 12 months after the date
of their certification under this subparagraph shall be considered to be
in effect as of the date of such certification.
``(C)(i) No certification of compliance with the requirements of
paragraph (2) or (3) may be made with respect to any State whose State
law is not otherwise eligible for certification under section 303 or
approvable under section 3304 of the Federal Unemployment Tax Act.
``(ii) No certification of compliance with the requirements of
paragraph (3) may be made with respect to any State whose State law is
not in compliance with the requirements of paragraph (2).
``(iii) <<NOTE: Deadline.>> No application under subparagraph (A)
may be considered if submitted before the date of the enactment of this
subsection or after the latest date necessary (as specified by the
Secretary of Labor) to ensure that all incentive payments under this
subsection are made before October 1, 2011.
``(5)(A) Except as provided in subparagraph (B), any amount
transferred to the account of a State under this subsection may be used
by such State only in the payment of cash benefits to individuals with
respect to their unemployment (including for dependents' allowances and
for unemployment compensation under paragraph (3)(C)), exclusive of
expenses of administration.
``(B) A State may, subject to the same conditions as set forth in
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the
reference to `subsections (a) and (b)' in subparagraph (D) thereof to
include this subsection), use any amount transferred to the account of
such State under this subsection for the administration of its
unemployment compensation law and public employment offices.
``(6) Out of any money in the Federal unemployment account not
otherwise appropriated, the Secretary of the Treasury shall reserve
$7,000,000,000 for incentive payments under this subsection. Any amount
so reserved shall not be taken into account for purposes of any
determination under section 902, 910, or 1203
[[Page 123 STAT. 443]]
of the amount in the Federal unemployment account as of any given time.
Any amount so reserved for which the Secretary of the Treasury has not
received a certification under paragraph (4)(B) by the deadline
described in paragraph (4)(C)(iii) shall, upon the close of fiscal year
2011, become unrestricted as to use as part of the Federal unemployment
account.
``(7) For purposes of this subsection, the terms `benefit year',
`base period', and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``Special Transfer in Fiscal Year 2009 for Administration
``(g)(1) <<NOTE: Deadline.>> In addition to any other amounts, the
Secretary of the Treasury shall transfer from the employment security
administration account to the account of each State in the Unemployment
Trust Fund, within 30 days after the date of the enactment of this
subsection, the amount determined with respect to such State under
paragraph (2).
``(2) The amount to be transferred under this subsection to a State
account shall (as determined by the Secretary of Labor and certified by
such Secretary to the Secretary of the Treasury) be equal to the amount
obtained by multiplying $500,000,000 by the same ratio as determined
under subsection (f)(1)(B) with respect to such State.
``(3) Any amount transferred to the account of a State as a result
of the enactment of this subsection may be used by the State agency of
such State only in the payment of expenses incurred by it for--
``(A) the administration of the provisions of its State law
carrying out the purposes of subsection (f)(2) or any
subparagraph of subsection (f)(3);
``(B) improved outreach to individuals who might be eligible
for regular unemployment compensation by virtue of any
provisions of the State law which are described in subparagraph
(A);
``(C) the improvement of unemployment benefit and
unemployment tax operations, including responding to increased
demand for unemployment compensation; and
``(D) staff-assisted reemployment services for unemployment
compensation claimants.''.
(b) <<NOTE: 42 USC 1103 note.>> Regulations.--The Secretary of
Labor may prescribe any regulations, operating instructions, or other
guidance necessary to carry out the amendment made by subsection (a).
SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.
Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) is
amended by adding at the end the following new paragraph:
``(10)(A) <<NOTE: Time period.>> With respect to the period
beginning on the date of enactment of this paragraph and ending on
December 31, 2010--
``(i) any interest payment otherwise due from a State under
this subsection during such period shall be deemed to have been
made by the State; and
``(ii) no interest shall accrue during such period on any
advance or advances made under section 1201 to a State.
``(B) The provisions of subparagraph (A) shall have no effect on the
requirement for interest payments under this subsection
[[Page 123 STAT. 444]]
after the period described in such subparagraph or on the accrual of
interest under this subsection after such period.''.
SEC. 2005. <<NOTE: 26 USC 3304 note.>> FULL FEDERAL FUNDING OF EXTENDED
UNEMPLOYMENT COMPENSATION FOR A LIMITED PERIOD.
(a) <<NOTE: Applicability.>> In General.--In the case of sharable
extended compensation and sharable regular compensation paid for weeks
of unemployment beginning after the date of the enactment of this
section and before January 1, 2010, section 204(a)(1) of the Federal-
State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note) shall be applied by substituting ``100 percent of'' for ``one-half
of''.
(b) Special Rule.--At the option of a State, for any weeks of
unemployment beginning after the date of the enactment of this section
and before January 1, 2010, an individual's eligibility period (as
described in section 203(c) of the Federal-State Extended Unemployment
Compensation Act of 1970) shall, for purposes of any determination of
eligibility for extended compensation under the State law of such State,
be considered to include any week which begins--
(1) after the date as of which such individual exhausts all
rights to emergency unemployment compensation; and
(2) during an extended benefit period that began on or
before the date described in paragraph (1).
(c) <<NOTE: Applicability.>> Limited Extension.--In the case of an
individual who receives extended compensation with respect to 1 or more
weeks of unemployment beginning after the date of the enactment of this
Act and before January 1, 2010, the provisions of subsections (a) and
(b) shall, at the option of a State, be applied by substituting ``ending
before June 1, 2010'' for ``before January 1, 2010''.
(d) Extension of Temporary Federal Matching for the First Week of
Extended Benefits for States With No Waiting Week.--
(1) In general.--Section 5 of the Unemployment Compensation
Extension Act of 2008 (Public Law 110-449) <<NOTE: 26 USC 3304
note.>> is amended by striking ``December 8, 2009'' and
inserting ``May 30, 2010''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect as if included in the enactment of the
Unemployment Compensation Extension Act of 2008 (Public Law 110-
449).
(e) Definitions.--For purposes of this section--
(1) the terms ``sharable extended compensation'' and
``sharable regular compensation'' have the respective meanings
given such terms under section 204 of the Federal-State Extended
Unemployment Compensation Act of 1970;
(2) the terms ``extended compensation'', ``State'', ``State
law'', and ``week'' have the respective meanings given such
terms under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970;
(3) the term ``emergency unemployment compensation'' means
benefits payable to individuals under title IV of the
Supplemental Appropriations Act, 2008 with respect to their
unemployment; and
(4) the term ``extended benefit period'' means an extended
benefit period as determined in accordance with applicable
[[Page 123 STAT. 445]]
provisions of the Federal-State Extended Unemployment
Compensation Act of 1970.
(f) Regulations.--The Secretary of Labor may prescribe any operating
instructions or regulations necessary to carry out this section.
SEC. 2006. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT BENEFITS UNDER
THE RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) In General.--Section 2(c)(2) of the Railroad Unemployment
Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the
following:
``(D) <<NOTE: Applicability.>> Temporary increase
in extended unemployment benefits.--
``(i) Employees with 10 or more years of
service.--Subject to clause (iii), in the case of
an employee who has 10 or more years of service
(as so defined), with respect to extended
unemployment benefits--
``(I) subparagraph (A) shall be
applied by substituting `130 days of
unemployment' for `65 days of
unemployment'; and
``(II) subparagraph (B) shall be
applied by inserting `(or, in the case
of unemployment benefits, 13 consecutive
14-day periods)' after `7 consecutive
14-day periods'.
``(ii) Employees with less than 10 years of
service.--Subject to clause (iii), in the case of
an employee who has less than 10 years of service
(as so defined), with respect to extended
unemployment benefits, this paragraph shall apply
to such an employee in the same manner as this
paragraph would apply to an employee described in
clause (i) if such clause had not been enacted.
``(iii) Application.-- <<NOTE: Time
period. Deadline.>> The provisions of clauses (i)
and (ii) shall apply to an employee who received
normal benefits for days of unemployment under
this Act during the period beginning July 1, 2008,
and ending on June 30, 2009, except that no
extended benefit period under this paragraph shall
begin after December 31, 2009. Notwithstanding the
preceding sentence, no benefits shall be payable
under this subparagraph and clauses (i) and (ii)
shall no longer be applicable upon the exhaustion
of the funds appropriated under clause (iv) for
payment of benefits under this subparagraph.
``(iv) Appropriation.--Out of any funds in the
Treasury not otherwise appropriated, there are
appropriated $20,000,000 to cover the cost of
additional extended unemployment benefits provided
under this subparagraph, to remain available until
expended.''.
(b) Funding for Administration.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated to the Railroad
Retirement Board $80,000 to cover the administrative expenses associated
with the payment of additional extended unemployment benefits under
section 2(c)(2)(D) of the Railroad
[[Page 123 STAT. 446]]
Unemployment Insurance Act, as added by subsection (a), to remain
available until expended.
Subtitle B--Assistance for Vulnerable Individuals
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.
(a) Temporary Fund.--
(1) In general.--Section 403 of the Social Security Act (42
U.S.C. 603) is amended by adding at the end the following:
``(c) Emergency Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a fund which shall be known as the
`Emergency Contingency Fund for State Temporary Assistance for
Needy Families Programs' (in this subsection referred to as the
`Emergency Fund').
``(2) Deposits into fund.--
``(A) In general.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated for fiscal year 2009, $5,000,000,000
for payment to the Emergency Fund.
``(B) Availability and use of funds.--The amounts
appropriated to the Emergency Fund under subparagraph
(A) shall remain available through fiscal year 2010 and
shall be used to make grants to States in each of fiscal
years 2009 and 2010 in accordance with the requirements
of paragraph (3).
``(C) Limitation.--In no case may the Secretary make
a grant from the Emergency Fund for a fiscal year after
fiscal year 2010.
``(3) Grants.--
``(A) Grant related to caseload increases.--
``(i) In general.--For each calendar quarter
in fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each State
that--
``(I) requests a grant under this
subparagraph for the quarter; and
``(II) meets the requirement of
clause (ii) for the quarter.
``(ii) Caseload increase requirement.--A State
meets the requirement of this clause for a quarter
if the average monthly assistance caseload of the
State for the quarter exceeds the average monthly
assistance caseload of the State for the
corresponding quarter in the emergency fund base
year of the State.
``(iii) Amount of grant.--Subject to paragraph
(5), the amount of the grant to be made to a State
under this subparagraph for a quarter shall be an
amount equal to 80 percent of the amount (if any)
by which the total expenditures of the State for
basic assistance (as defined by the Secretary) in
the quarter, whether under the State program
funded under this part or as qualified State
expenditures, exceeds the total expenditures of
the State for such assistance for the
corresponding quarter in the emergency fund base
year of the State.
[[Page 123 STAT. 447]]
``(B) Grant related to increased expenditures for
non-recurrent short term benefits.--
``(i) In general.--For each calendar quarter
in fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each State
that--
``(I) requests a grant under this
subparagraph for the quarter; and
``(II) meets the requirement of
clause (ii) for the quarter.
``(ii) Non-recurrent short term expenditure
requirement.--A State meets the requirement of
this clause for a quarter if the total
expenditures of the State for non-recurrent short
term benefits in the quarter, whether under the
State program funded under this part or as
qualified State expenditures, exceeds the total
expenditures of the State for non-recurrent short
term benefits in the corresponding quarter in the
emergency fund base year of the State.
``(iii) Amount of grant.--Subject to paragraph
(5), the amount of the grant to be made to a State
under this subparagraph for a quarter shall be an
amount equal to 80 percent of the excess described
in clause (ii).
``(C) Grant related to increased expenditures for
subsidized employment.--
``(i) In general.--For each calendar quarter
in fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each State
that--
``(I) requests a grant under this
subparagraph for the quarter; and
``(II) meets the requirement of
clause (ii) for the quarter.
``(ii) Subsidized employment expenditure
requirement.--A State meets the requirement of
this clause for a quarter if the total
expenditures of the State for subsidized
employment in the quarter, whether under the State
program funded under this part or as qualified
State expenditures, exceeds the total such
expenditures of the State in the corresponding
quarter in the emergency fund base year of the
State.
``(iii) Amount of grant.--Subject to paragraph
(5), the amount of the grant to be made to a State
under this subparagraph for a quarter shall be an
amount equal to 80 percent of the excess described
in clause (ii).
``(4) Authority to make necessary adjustments to data and
collect needed data.--In determining the size of the caseload of
a State and the expenditures of a State for basic assistance,
non-recurrent short-term benefits, and subsidized employment,
during any period for which the State requests funds under this
subsection, and during the emergency fund base year of the
State, the Secretary may make appropriate adjustments to the
data, on a State-by-State basis, to ensure that the data are
comparable with respect to the groups of families served and the
types of aid provided. The Secretary may develop a mechanism for
collecting expenditure data,
[[Page 123 STAT. 448]]
including procedures which allow States to make reasonable
estimates, and may set deadlines for making revisions to the
data.
``(5) Limitation.--The total amount payable to a single
State under subsection (b) and this subsection for fiscal years
2009 and 2010 combined shall not exceed 50 percent of the annual
State family assistance grant.
``(6) Limitations on use of funds.--A State to which an
amount is paid under this subsection may use the amount only as
authorized by section 404.
``(7) Timing of implementation.--The Secretary shall
implement this subsection as quickly as reasonably possible,
pursuant to appropriate guidance to States.
``(8) Application to indian tribes.--This subsection shall
apply to an Indian tribe with an approved tribal family
assistance plan under section 412 in the same manner as this
subsection applies to a State.
``(9) Definitions.--In this subsection:
``(A) Average monthly assistance caseload defined.--
The term `average monthly assistance caseload' means,
with respect to a State and a quarter, the number of
families receiving assistance during the quarter under
the State program funded under this part or as qualified
State expenditures, subject to adjustment under
paragraph (4).
``(B) Emergency fund base year.--
``(i) In general.--The term `emergency fund
base year' means, with respect to a State and a
category described in clause (ii), whichever of
fiscal year 2007 or 2008 is the fiscal year in
which the amount described by the category with
respect to the State is the lesser.
``(ii) Categories described.--The categories
described in this clause are the following:
``(I) The average monthly assistance
caseload of the State.
``(II) The total expenditures of the
State for non-recurrent short term
benefits, whether under the State
program funded under this part or as
qualified State expenditures.
``(III) The total expenditures of
the State for subsidized employment,
whether under the State program funded
under this part or as qualified State
expenditures.
``(C) Qualified state expenditures.--The term
`qualified State expenditures' has the meaning given the
term in section 409(a)(7).''.
(2) Repeal.-- <<NOTE: Effective dates.>> Effective October
1, 2010, subsection (c) of section 403 of the Social Security
Act (42 U.S.C. 603) (as added by paragraph (1)) is repealed,
except that paragraph (9) of such subsection shall remain in
effect until October 1, 2011, but only with respect to section
407(b)(3)(A)(i) of such Act.
(b) Temporary Modification of Caseload Reduction Credit.--Section
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by
inserting ``(or if the immediately preceding fiscal year is fiscal year
2008, 2009, or 2010, then, at State option, during the emergency fund
base year of the State
[[Page 123 STAT. 449]]
with respect to the average monthly assistance caseload of the State
(within the meaning of section 403(c)(9)), except that, if a State
elects such option for fiscal year 2008, the emergency fund base year of
the State with respect to such caseload shall be fiscal year 2007))''
before ``under the State''.
(c) Disregard From Limitation on Total Payments to Territories.--
Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is
amended by inserting ``403(c)(3),'' after ``403(a)(5),''.
(d) <<NOTE: Effective dates.>> Sunset of Other Temporary
Provisions.--
(1) Disregard from limitation on total payments to
territories.--Effective October 1, 2010, section 1108(a)(2) of
the Social Security Act (42 U.S.C. 1308(a)(2)) is amended by
striking ``403(c)(3),'' (as added by subsection (c)).
(2) Caseload reduction credit.--Effective October 1, 2011,
section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i))
is amended by striking ``(or if the immediately preceding fiscal
year is fiscal year 2008, 2009, or 2010, then, at State option,
during the emergency fund base year of the State with respect to
the average monthly assistance caseload of the State (within the
meaning of section 403(c)(9)), except that, if a State elects
such option for fiscal year 2008, the emergency fund base year
of the State with respect to such caseload shall be fiscal year
2007))'' (as added by subsection (b)).
SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.
(a) Extension Through Fiscal Year 2010.--Section 7101(a) of the
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 135), as
amended by section 301(a) of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), is amended by striking
``fiscal year 2009'' and inserting ``fiscal year 2010''.
(b) Conforming Amendment.--Section 403(a)(3)(H)(ii) of the Social
Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read as follows:
``(ii) subparagraph (G) shall be applied as if
`fiscal year 2010' were substituted for `fiscal
year 2001'; and''.
SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS
CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND
SERVICES.
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is
amended to read as follows:
``(e) Authority to Carry Over Certain Amounts for Benefits or
Services or for Future Contingencies.--A State or tribe may use a grant
made to the State or tribe under this part for any fiscal year to
provide, without fiscal year limitation, any benefit or service that may
be provided under the State or tribal program funded under this part.''.
SEC. 2104. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.
<<NOTE: Time period. Applicability. 42 USC 655 note.>> During the
period that begins on October 1, 2008, and ends on September 30, 2010,
section 455(a)(1) of the Social Security Act (42 U.S.C. 655(a)(1)) shall
be applied and administered as if the phrase ``from amounts paid to the
State under section 458 or'' does not appear in such section.
[[Page 123 STAT. 450]]
Subtitle C--Economic Recovery Payments to Certain Individuals
SEC. 2201. <<NOTE: 26 USC 6428 note.>> ECONOMIC RECOVERY PAYMENT TO
RECIPIENTS OF SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME,
RAILROAD RETIREMENT BENEFITS, AND VETERANS DISABILITY
COMPENSATION OR PENSION BENEFITS.
(a) Authority to Make Payments.--
(1) Eligibility.--
(A) In general.--Subject to paragraph (5)(B), the
Secretary of the Treasury shall disburse a $250 payment
to each individual who, for any month during the 3-month
period ending with the month which ends prior to the
month that includes the date of the enactment of this
Act, is entitled to a benefit payment described in
clause (i), (ii), or (iii) of subparagraph (B) or is
eligible for a SSI cash benefit described in
subparagraph (C).
(B) Benefit payment described.--For purposes of
subparagraph (A):
(i) Title ii benefit.--A benefit payment
described in this clause is a monthly insurance
benefit payable (without regard to sections
202(j)(1) and 223(b) of the Social Security Act
(42 U.S.C. 402(j)(1), 423(b)) under--
(I) section 202(a) of such Act (42
U.S.C. 402(a));
(II) section 202(b) of such Act (42
U.S.C. 402(b));
(III) section 202(c) of such Act (42
U.S.C. 402(c));
(IV) section 202(d)(1)(B)(ii) of
such Act (42 U.S.C. 402(d)(1)(B)(ii));
(V) section 202(e) of such Act (42
U.S.C. 402(e));
(VI) section 202(f) of such Act (42
U.S.C. 402(f));
(VII) section 202(g) of such Act (42
U.S.C. 402(g));
(VIII) section 202(h) of such Act
(42 U.S.C. 402(h));
(IX) section 223(a) of such Act (42
U.S.C. 423(a));
(X) section 227 of such Act (42
U.S.C. 427); or
(XI) section 228 of such Act (42
U.S.C. 428).
(ii) Railroad retirement benefit.--A benefit
payment described in this clause is a monthly
annuity or pension payment payable (without regard
to section 5(a)(ii) of the Railroad Retirement Act
of 1974 (45 U.S.C. 231d(a)(ii))) under--
(I) section 2(a)(1) of such Act (45
U.S.C. 231a(a)(1));
(II) section 2(c) of such Act (45
U.S.C. 231a(c));
(III) section 2(d)(1)(i) of such Act
(45 U.S.C. 231a(d)(1)(i));
(IV) section 2(d)(1)(ii) of such Act
(45 U.S.C. 231a(d)(1)(ii));
[[Page 123 STAT. 451]]
(V) section 2(d)(1)(iii)(C) of such
Act to an adult disabled child (45
U.S.C. 231a(d)(1)(iii)(C));
(VI) section 2(d)(1)(iv) of such Act
(45 U.S.C. 231a(d)(1)(iv));
(VII) section 2(d)(1)(v) of such Act
(45 U.S.C. 231a(d)(1)(v)); or
(VIII) section 7(b)(2) of such Act
(45 U.S.C. 231f(b)(2)) with respect to
any of the benefit payments described in
clause (i) of this subparagraph.
(iii) Veterans benefit.--A benefit payment
described in this clause is a compensation or
pension payment payable under--
(I) section 1110, 1117, 1121, 1131,
1141, or 1151 of title 38, United States
Code;
(II) section 1310, 1312, 1313, 1315,
1316, or 1318 of title 38, United States
Code;
(III) section 1513, 1521, 1533,
1536, 1537, 1541, 1542, or 1562 of title
38, United States Code; or
(IV) section 1805, 1815, or 1821 of
title 38, United States Code,
to a veteran, surviving spouse, child, or parent
as described in paragraph (2), (3), (4)(A)(ii), or
(5) of section 101, title 38, United States Code,
who received that benefit during any month within
the 3 month period ending with the month which
ends prior to the month that includes the date of
the enactment of this Act.
(C) Ssi cash benefit described.--A SSI cash benefit
described in this subparagraph is a cash benefit payable
under section 1611 (other than under subsection
(e)(1)(B) of such section) or 1619(a) of the Social
Security Act (42 U.S.C. 1382, 1382h).
(2) Requirement.--A payment shall be made under paragraph
(1) only to individuals who reside in 1 of the 50 States, the
District of Columbia, Puerto Rico, Guam, the United States
Virgin Islands, American Samoa, or the Northern Mariana Islands.
For purposes of the preceding sentence, the determination of the
individual's residence shall be based on the current address of
record under a program specified in paragraph (1).
(3) No double payments.--An individual shall be paid only 1
payment under this section, regardless of whether the individual
is entitled to, or eligible for, more than 1 benefit or cash
payment described in paragraph (1).
(4) Limitation.--A payment under this section shall not be
made--
(A) in the case of an individual entitled to a
benefit specified in paragraph (1)(B)(i) or paragraph
(1)(B)(ii)(VIII) if, for the most recent month of such
individual's entitlement in the 3-month period described
in paragraph (1), such individual's benefit under such
paragraph was not payable by reason of subsection (x) or
(y) of section 202 the Social Security Act (42 U.S.C.
402) or section 1129A of such Act (42 U.S.C. 1320a-8a);
(B) in the case of an individual entitled to a
benefit specified in paragraph (1)(B)(iii) if, for the
most recent month of such individual's entitlement in
the 3 month
[[Page 123 STAT. 452]]
period described in paragraph (1), such individual's
benefit under such paragraph was not payable, or was
reduced, by reason of section 1505, 5313, or 5313B of
title 38, United States Code;
(C) in the case of an individual entitled to a
benefit specified in paragraph (1)(C) if, for such most
recent month, such individual's benefit under such
paragraph was not payable by reason of subsection
(e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382) or
section 1129A of such Act (42 U.S.C. 1320a-8a); or
(D) in the case of any individual whose date of
death occurs before the date on which the individual is
certified under subsection (b) to receive a payment
under this section.
(5) Timing and manner of payments.--
(A) In general.-- <<NOTE: Deadline.>> The Secretary
of the Treasury shall commence disbursing payments under
this section at the earliest practicable date but in no
event later than 120 days after the date of enactment of
this Act. The Secretary of the Treasury may disburse any
payment electronically to an individual in such manner
as if such payment was a benefit payment or cash benefit
to such individual under the applicable program
described in subparagraph (B) or (C) of paragraph (1).
(B) Deadline.--No payments shall be disbursed under
this section after December 31, 2010, regardless of any
determinations of entitlement to, or eligibility for,
such payments made after such date.
(b) Identification of Recipients.-- <<NOTE: Certification.>> The
Commissioner of Social Security, the Railroad Retirement Board, and the
Secretary of Veterans Affairs shall certify the individuals entitled to
receive payments under this section and provide the Secretary of the
Treasury with the information needed to disburse such payments. A
certification of an individual shall be unaffected by any subsequent
determination or redetermination of the individual's entitlement to, or
eligibility for, a benefit specified in subparagraph (B) or (C) of
subsection (a)(1).
(c) Treatment of Payments.--
(1) Payment to be disregarded for purposes of all federal
and federally assisted programs.-- <<NOTE: Time period.>> A
payment under subsection (a) shall not be regarded as income and
shall not be regarded as a resource for the month of receipt and
the following 9 months, for purposes of determining the
eligibility of the recipient (or the recipient's spouse or
family) for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any
State or local program financed in whole or in part with Federal
funds.
(2) Payment not considered income for purposes of
taxation.--A payment under subsection (a) shall not be
considered as gross income for purposes of the Internal Revenue
Code of 1986.
(3) Payments protected from assignment.--
<<NOTE: Applicability.>> The provisions of sections 207 and
1631(d)(1) of the Social Security Act (42 U.S.C. 407,
1383(d)(1)), section 14(a) of the Railroad Retirement Act of
1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United
States Code, shall apply to any payment
[[Page 123 STAT. 453]]
made under subsection (a) as if such payment was a benefit
payment or cash benefit to such individual under the applicable
program described in subparagraph (B) or (C) of subsection
(a)(1).
(4) Payments subject to offset.--Notwithstanding paragraph
(3), for purposes of section 3716 of title 31, United States
Code, any payment made under this section shall not be
considered a benefit payment or cash benefit made under the
applicable program described in subparagraph (B) or (C) of
subsection (a)(1) and all amounts paid shall be subject to
offset to collect delinquent debts.
(d) Payment to Representative Payees and Fiduciaries.--
(1) In general.--In any case in which an individual who is
entitled to a payment under subsection (a) and whose benefit
payment or cash benefit described in paragraph (1) of that
subsection is paid to a representative payee or fiduciary, the
payment under subsection (a) shall be made to the individual's
representative payee or fiduciary and the entire payment shall
be used only for the benefit of the individual who is entitled
to the payment.
(2) Applicability.--
(A) Payment on the basis of a title ii or ssi
benefit.--Section 1129(a)(3) of the Social Security Act
(42 U.S.C. 1320a-8(a)(3)) shall apply to any payment
made on the basis of an entitlement to a benefit
specified in paragraph (1)(B)(i) or (1)(C) of subsection
(a) in the same manner as such section applies to a
payment under title II or XVI of such Act.
(B) Payment on the basis of a railroad retirement
benefit.--Section 13 of the Railroad Retirement Act (45
U.S.C. 231l) shall apply to any payment made on the
basis of an entitlement to a benefit specified in
paragraph (1)(B)(ii) of subsection (a) in the same
manner as such section applies to a payment under such
Act.
(C) Payment on the basis of a veterans benefit.--
Sections 5502, 6106, and 6108 of title 38, United States
Code, shall apply to any payment made on the basis of an
entitlement to a benefit specified in paragraph
(1)(B)(iii) of subsection (a) in the same manner as
those sections apply to a payment under that title.
(e) Appropriation.--Out of any sums in the Treasury of the United
States not otherwise appropriated, the following sums are appropriated
for the period of fiscal years 2009 through 2011, to remain available
until expended, to carry out this section:
(1) For the Secretary of the Treasury, $131,000,000 for
administrative costs incurred in carrying out this section,
section 2202, section 36A of the Internal Revenue Code of 1986
(as added by this Act), and other provisions of this Act or the
amendments made by this Act relating to the Internal Revenue
Code of 1986.
(2) For the Commissioner of Social Security--
(A) such sums as may be necessary for payments to
individuals certified by the Commissioner of Social
Security as entitled to receive a payment under this
section; and
(B) $90,000,000 for the Social Security
Administration's Limitation on Administrative Expenses
for costs incurred in carrying out this section.
[[Page 123 STAT. 454]]
(3) For the Railroad Retirement Board--
(A) such sums as may be necessary for payments to
individuals certified by the Railroad Retirement Board
as entitled to receive a payment under this section; and
(B) $1,400,000 to the Railroad Retirement Board's
Limitation on Administration for administrative costs
incurred in carrying out this section.
(4)(A) For the Secretary of Veterans Affairs--
(i) such sums as may be necessary for the
Compensation and Pensions account, for payments to
individuals certified by the Secretary of Veterans
Affairs as entitled to receive a payment under
this section; and
(ii) $100,000 for the Information Systems
Technology account and $7,100,000 for the General
Operating Expenses account for administrative
costs incurred in carrying out this section.
(B) The Department of Veterans Affairs Compensation and
Pensions account shall hereinafter be available for payments
authorized under subsection (a)(1)(A) to individuals entitled to
a benefit payment described in subsection (a)(1)(B)(iii).
SEC. 2202. <<NOTE: 26 USC 6428 note.>> SPECIAL CREDIT FOR CERTAIN
GOVERNMENT RETIREES.
(a) In General.--In the case of an eligible individual, there shall
be allowed as a credit against the tax imposed by subtitle A of the
Internal Revenue Code of 1986 for the first taxable year beginning in
2009 an amount equal $250 ($500 in the case of a joint return where both
spouses are eligible individuals).
(b) Eligible Individual.--For purposes of this section--
(1) In general.--The term ``eligible individual'' means any
individual--
(A) who receives during the first taxable year
beginning in 2009 any amount as a pension or annuity for
service performed in the employ of the United States or
any State, or any instrumentality thereof, which is not
considered employment for purposes of chapter 21 of the
Internal Revenue Code of 1986, and
(B) who does not receive a payment under section
2201 during such taxable year.
(2) Identification number requirement.--Such term shall not
include any individual who does not include on the return of tax
for the taxable year--
(A) such individual's social security account
number, and
(B) in the case of a joint return, the social
security account number of one of the taxpayers on such
return.
For purposes of the preceding sentence, the social security
account number shall not include a TIN (as defined in section
7701(a)(41) of the Internal Revenue Code of 1986) issued by the
Internal Revenue Service. Any omission of a correct social
security account number required under this subparagraph shall
be treated as a mathematical or clerical error for purposes of
applying section 6213(g)(2) of such Code to such omission.
(c) Treatment of Credit.--
(1) Refundable credit.--
(A) In general.--The credit allowed by subsection
(a) shall be treated as allowed by subpart C of part IV
of
[[Page 123 STAT. 455]]
subchapter A of chapter 1 of the Internal Revenue Code
of 1986.
(B) Appropriations.--For purposes of section
1324(b)(2) of title 31, United States Code, the credit
allowed by subsection (a) shall be treated in the same
manner a refund from the credit allowed under section
36A of the Internal Revenue Code of 1986 (as added by
this Act).
(2) Deficiency rules.--For purposes of section 6211(b)(4)(A)
of the Internal Revenue Code of 1986, the credit allowable by
subsection (a) shall be treated in the same manner as the credit
allowable under section 36A of the Internal Revenue Code of 1986
(as added by this Act).
(d) Refunds Disregarded in the Administration of Federal Programs
and Federally Assisted Programs.-- <<NOTE: Time period.>> Any credit or
refund allowed or made to any individual by reason of this section shall
not be taken into account as income and shall not be taken into account
as resources for the month of receipt and the following 2 months, for
purposes of determining the eligibility of such individual or any other
individual for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any State or
local program financed in whole or in part with Federal funds.
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
SEC. 3000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
Sec. 3000. Table of contents.
Sec. 3001. Premium assistance for COBRA benefits.
SEC. 3001. <<NOTE: 26 USC 6432 note.>> PREMIUM ASSISTANCE FOR COBRA
BENEFITS.
(a) Premium Assistance for COBRA Continuation Coverage for
Individuals and Their Families.--
(1) Provision of premium assistance.--
(A) Reduction of premiums payable.--In the case of
any premium for a period of coverage beginning on or
after the date of the enactment of this Act for COBRA
continuation coverage with respect to any assistance
eligible individual, such individual shall be treated
for purposes of any COBRA continuation provision as
having paid the amount of such premium if such
individual pays (or a person other than such
individual's employer pays on behalf of such individual)
35 percent of the amount of such premium (as determined
without regard to this subsection).
(B) Plan enrollment option.--
(i) In general.--
<<NOTE: Deadline.>> Notwithstanding the COBRA
continuation provisions, an assistance eligible
individual may, not later than 90 days after the
date of notice of the plan enrollment option
described in this subparagraph, elect to enroll in
coverage under a plan offered by the employer
involved, or the employee organization involved
(including, for this purpose, a joint board of
trustees of a multiemployer trust
[[Page 123 STAT. 456]]
affiliated with one or more multiemployer plans),
that is different than coverage under the plan in
which such individual was enrolled at the time the
qualifying event occurred, and such coverage shall
be treated as COBRA continuation coverage for
purposes of the applicable COBRA continuation
coverage provision.
(ii) Requirements.--An assistance eligible
individual may elect to enroll in different
coverage as described in clause (i) only if--
(I) the employer involved has made a
determination that such employer will
permit assistance eligible individuals
to enroll in different coverage as
provided for this subparagraph;
(II) the premium for such different
coverage does not exceed the premium for
coverage in which the individual was
enrolled at the time the qualifying
event occurred;
(III) the different coverage in
which the individual elects to enroll is
coverage that is also offered to the
active employees of the employer at the
time at which such election is made; and
(IV) the different coverage is not--
(aa) coverage that provides
only dental, vision, counseling,
or referral services (or a
combination of such services);
(bb) a flexible spending
arrangement (as defined in
section 106(c)(2) of the
Internal Revenue Code of 1986);
or
(cc) coverage that provides
coverage for services or
treatments furnished in an on-
site medical facility maintained
by the employer and that
consists primarily of first-aid
services, prevention and
wellness care, or similar care
(or a combination of such care).
(C) Premium reimbursement.--For provisions providing
the balance of such premium, see section 6432 of the
Internal Revenue Code of 1986, as added by paragraph
(12).
(2) Limitation of period of premium assistance.--
(A) In general.--Paragraph (1)(A) shall not apply
with respect to any assistance eligible individual for
months of coverage beginning on or after the earlier
of--
(i) the first date that such individual is
eligible for coverage under any other group health
plan (other than coverage consisting of only
dental, vision, counseling, or referral services
(or a combination thereof), coverage under a
flexible spending arrangement (as defined in
section 106(c)(2) of the Internal Revenue Code of
1986), or coverage of treatment that is furnished
in an on-site medical facility maintained by the
employer and that consists primarily of first-aid
services, prevention and wellness care, or similar
care (or a combination thereof)) or is eligible
for benefits under title XVIII of the Social
Security Act, or
(ii) the earliest of--
[[Page 123 STAT. 457]]
(I) the date which is 9 months after
the first day of the first month that
paragraph (1)(A) applies with respect to
such individual,
(II) the date following the
expiration of the maximum period of
continuation coverage required under the
applicable COBRA continuation coverage
provision, or
(III) the date following the
expiration of the period of continuation
coverage allowed under paragraph
(4)(B)(ii).
(B) Timing of eligibility for additional coverage.--
For purposes of subparagraph (A)(i), an individual shall
not be treated as eligible for coverage under a group
health plan before the first date on which such
individual could be covered under such plan.
(C) Notification requirement.--An assistance
eligible individual shall notify in writing the group
health plan with respect to which paragraph (1)(A)
applies if such paragraph ceases to apply by reason of
subparagraph (A)(i). Such notice shall be provided to
the group health plan in such time and manner as may be
specified by the Secretary of Labor.
(3) <<NOTE: Definition. Time period.>> Assistance eligible
individual.--For purposes of this section, the term ``assistance
eligible individual'' means any qualified beneficiary if--
(A) at any time during the period that begins with
September 1, 2008, and ends with December 31, 2009, such
qualified beneficiary is eligible for COBRA continuation
coverage,
(B) such qualified beneficiary elects such coverage,
and
(C) the qualifying event with respect to the COBRA
continuation coverage consists of the involuntary
termination of the covered employee's employment and
occurred during such period.
(4) Extension of election period and effect on coverage.--
(A) In general.--For purposes of applying section
605(a) of the Employee Retirement Income Security Act of
1974, section 4980B(f)(5)(A) of the Internal Revenue
Code of 1986, section 2205(a) of the Public Health
Service Act, and section 8905a(c)(2) of title 5, United
States Code, in the case of an individual who does not
have an election of COBRA continuation coverage in
effect on the date of the enactment of this Act but who
would be an assistance eligible individual if such
election were so in effect, such individual may elect
the COBRA continuation coverage under the COBRA
continuation coverage provisions containing such
sections during the period beginning on the date of the
enactment of this Act and ending 60 days after the date
on which the notification required under paragraph
(7)(C) is provided to such individual.
(B) Commencement of coverage; no reach-back.--Any
COBRA continuation coverage elected by a qualified
beneficiary during an extended election period under
subparagraph (A)--
[[Page 123 STAT. 458]]
(i) shall commence with the first period of
coverage beginning on or after the date of the
enactment of this Act, and
(ii) shall not extend beyond the period of
COBRA continuation coverage that would have been
required under the applicable COBRA continuation
coverage provision if the coverage had been
elected as required under such provision.
(C) Preexisting conditions.--With respect to a
qualified beneficiary who elects COBRA continuation
coverage pursuant to subparagraph (A), the period--
(i) beginning on the date of the qualifying
event, and
(ii) ending with the beginning of the period
described in subparagraph (B)(i),
shall be disregarded for purposes of determining the 63-
day periods referred to in section 701(c)(2) of the
Employee Retirement Income Security Act of 1974, section
9801(c)(2) of the Internal Revenue Code of 1986, and
section 2701(c)(2) of the Public Health Service Act.
(5) Expedited review of denials of premium assistance.--In
any case in which an individual requests treatment as an
assistance eligible individual and is denied such treatment by
the group health plan, the Secretary of Labor (or the Secretary
of Health and Human Services in connection with COBRA
continuation coverage which is provided other than pursuant to
part 6 of subtitle B of title I of the Employee Retirement
Income Security Act of 1974), in consultation with the Secretary
of the Treasury, shall provide for expedited review of such
denial. <<NOTE: Application.>> 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. <<NOTE: Determination. Deadline.>> Such Secretary
shall make a determination regarding such individual's
eligibility within 15 business days after receipt of such
individual's application for review under this paragraph. Either
Secretary's determination upon review of the denial shall be de
novo and shall be the final determination of such
Secretary. <<NOTE: Courts.>> A reviewing court shall grant
deference to such Secretary's determination. The provisions of
this paragraph, paragraphs (1) through (4), and paragraph (7)
shall be treated as provisions of title I of the Employee
Retirement Income Security Act of 1974 for purposes of part 5 of
subtitle B of such title.
(6) Disregard of subsidies for purposes of federal and state
programs.--Notwithstanding any other provision of law, any
premium reduction with respect to an assistance eligible
individual under this subsection shall not be considered income
or resources in determining eligibility for, or the amount of
assistance or benefits provided under, any other public benefit
provided under Federal law or the law of any State or political
subdivision thereof.
(7) Notices to individuals.--
(A) General notice.--
(i) In general.--In the case of notices
provided under section 606(a)(4) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1166(4)), section 4980B(f)(6)(D) of the Internal
Revenue Code of 1986, section 2206(4) of the
Public Health Service Act (42
[[Page 123 STAT. 459]]
U.S.C. 300bb-6(4)), or section 8905a(f)(2)(A) of
title 5, United States Code, with respect to
individuals who, during the period described in
paragraph (3)(A), become entitled to elect COBRA
continuation coverage, the requirements of such
sections shall not be treated as met unless such
notices include an additional notification to the
recipient of--
(I) the availability of premium
reduction with respect to such coverage
under this subsection, and
(II) the option to enroll in
different coverage if the employer
permits assistance eligible individuals
to elect enrollment in different
coverage (as described in paragraph
(1)(B)).
(ii) Alternative notice.--
<<NOTE: Regulations.>> In the case of COBRA
continuation coverage to which the notice
provision under such sections does not apply, the
Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of
Health and Human Services, shall, in consultation
with administrators of the group health plans (or
other entities) that provide or administer the
COBRA continuation coverage involved, provide
rules requiring the provision of such notice.
(iii) Form.--The requirement of the additional
notification under this subparagraph may be met by
amendment of existing notice forms or by inclusion
of a separate document with the notice otherwise
required.
(B) Specific requirements.--Each additional
notification under subparagraph (A) shall include--
(i) the forms necessary for establishing
eligibility for premium reduction under this
subsection,
(ii) the name, address, and telephone number
necessary to contact the plan administrator and
any other person maintaining relevant information
in connection with such premium reduction,
(iii) a description of the extended election
period provided for in paragraph (4)(A),
(iv) a description of the obligation of the
qualified beneficiary under paragraph (2)(C) to
notify the plan providing continuation coverage of
eligibility for subsequent coverage under another
group health plan or eligibility for benefits
under title XVIII of the Social Security Act and
the penalty provided under section 6720C of the
Internal Revenue Code of 1986 for failure to so
notify the plan,
(v) a description, displayed in a prominent
manner, of the qualified beneficiary's right to a
reduced premium and any conditions on entitlement
to the reduced premium, and
(vi) a description of the option of the
qualified beneficiary to enroll in different
coverage if the employer permits such beneficiary
to elect to enroll in such different coverage
under paragraph (1)(B).
(C) Notice in connection with extended election
periods.-- <<NOTE: Deadline.>> In the case of any
assistance eligible individual
[[Page 123 STAT. 460]]
(or any individual described in paragraph (4)(A)) who
became entitled to elect COBRA continuation coverage
before the date of the enactment of this Act, the
administrator of the group health plan (or other entity)
involved shall provide (within 60 days after the date of
enactment of this Act) for the additional notification
required to be provided under subparagraph (A) and
failure to provide such notice shall be treated as a
failure to meet the notice requirements under the
applicable COBRA continuation provision.
(D) Model notices.-- <<NOTE: Deadline.>> Not later
than 30 days after the date of enactment of this Act--
(i) the Secretary of the Labor, in
consultation with the Secretary of the Treasury
and the Secretary of Health and Human Services,
shall prescribe models for the additional
notification required under this paragraph (other
than the additional notification described in
clause (ii)), and
(ii) in the case of any additional
notification provided pursuant to subparagraph (A)
under section 8905a(f)(2)(A) of title 5, United
States Code, the Office of Personnel Management
shall prescribe a model for such additional
notification.
(8) Regulations.--The Secretary of the Treasury may
prescribe such regulations or other guidance as may be necessary
or appropriate to carry out the provisions of this subsection,
including the prevention of fraud and abuse under this
subsection, except that the Secretary of Labor and the Secretary
of Health and Human Services may prescribe such regulations
(including interim final regulations) or other guidance as may
be necessary or appropriate to carry out the provisions of
paragraphs (5), (7), and (9).
(9) Outreach.--The Secretary of Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health and
Human Services, shall provide outreach consisting of public
education and enrollment assistance relating to premium
reduction provided under this subsection. Such outreach shall
target employers, group health plan administrators, public
assistance programs, States, insurers, and other entities as
determined appropriate by such Secretaries. Such outreach shall
include an initial focus on those individuals electing
continuation coverage who are referred to in paragraph
(7)(C). <<NOTE: Web posting.>> Information on such premium
reduction, including enrollment, shall also be made available on
websites of the Departments of Labor, Treasury, and Health and
Human Services.
(10) Definitions.--For purposes of this section--
(A) Administrator.--The term ``administrator'' has
the meaning given such term in section 3(16)(A) of the
Employee Retirement Income Security Act of 1974.
(B) COBRA continuation coverage.--The term ``COBRA
continuation coverage'' means continuation coverage
provided pursuant to part 6 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974
(other than under section 609), title XXII of the Public
Health Service Act, section 4980B of the Internal
Revenue Code of 1986 (other than subsection (f)(1) of
such section insofar as it relates to pediatric
vaccines), or section 8905a
[[Page 123 STAT. 461]]
of title 5, United States Code, or under a State program
that provides comparable continuation coverage. Such
term does not include coverage under a health flexible
spending arrangement under a cafeteria plan within the
meaning of section 125 of the Internal Revenue Code of
1986.
(C) COBRA continuation provision.--The term ``COBRA
continuation provision'' means the provisions of law
described in subparagraph (B).
(D) Covered employee.--The term ``covered employee''
has the meaning given such term in section 607(2) of the
Employee Retirement Income Security Act of 1974.
(E) Qualified beneficiary.--The term ``qualified
beneficiary'' has the meaning given such term in section
607(3) of the Employee Retirement Income Security Act of
1974.
(F) Group health plan.--The term ``group health
plan'' has the meaning given such term in section 607(1)
of the Employee Retirement Income Security Act of 1974.
(G) State.--The term ``State'' includes the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
(H) Period of coverage.--Any reference in this
subsection to a period of coverage shall be treated as a
reference to a monthly or shorter period of coverage
with respect to which premiums are charged with respect
to such coverage.
(11) Reports.--
(A) Interim report.--The Secretary of the Treasury
shall submit an interim report to the Committee on
Education and Labor, the Committee on Ways and Means,
and the Committee on Energy and Commerce of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions and the Committee on Finance of the
Senate regarding the premium reduction provided under
this subsection that includes--
(i) the number of individuals provided such
assistance as of the date of the report; and
(ii) the total amount of expenditures incurred
(with administrative expenditures noted
separately) in connection with such assistance as
of the date of the report.
(B) Final report.--As soon as practicable after the
last period of COBRA continuation coverage for which
premium reduction is provided under this section, the
Secretary of the Treasury shall submit a final report to
each Committee referred to in subparagraph (A) that
includes--
(i) the number of individuals provided premium
reduction under this section;
(ii) the average dollar amount (monthly and
annually) of premium reductions provided to such
individuals; and
(iii) the total amount of expenditures
incurred (with administrative expenditures noted
separately) in connection with premium reduction
under this section.
(12) COBRA premium assistance.--
[[Page 123 STAT. 462]]
(A) In general.--Subchapter B of chapter 65 of the
Internal Revenue Code of 1986, as amended by this Act,
is amended by adding at the end the following new
section:
``SEC. 6432. <<NOTE: 26 USC 6432.>> COBRA PREMIUM ASSISTANCE.
``(a) In General.--The person to whom premiums are payable under
COBRA continuation coverage shall be reimbursed as provided in
subsection (c) for the amount of premiums not paid by assistance
eligible individuals by reason of section 3002(a) of the Health
Insurance Assistance for the Unemployed Act of 2009.
``(b) Person Entitled to Reimbursement.--For purposes of subsection
(a), except as otherwise provided by the Secretary, the person to whom
premiums are payable under COBRA continuation coverage shall be treated
as being--
``(1) in the case of any group health plan which is a
multiemployer plan (as defined in section 3(37) of the Employee
Retirement Income Security Act of 1974), the plan,
``(2) in the case of any group health plan not described in
paragraph (1)--
``(A) which is subject to the COBRA continuation
provisions contained in--
``(i) the Internal Revenue Code of 1986,
``(ii) the Employee Retirement Income Security
Act of 1974,
``(iii) the Public Health Service Act, or
``(iv) title 5, United States Code, or
``(B) under which some or all of the coverage is not
provided by insurance,
the employer maintaining the plan, and
``(3) in the case of any group health plan not described in
paragraph (1) or (2), the insurer providing the coverage under
the group health plan.
``(c) Method of Reimbursement.--Except as otherwise provided by the
Secretary--
``(1) Treatment as payment of payroll taxes.--Each person
entitled to reimbursement under subsection (a) (and filing a
claim for such reimbursement at such time and in such manner as
the Secretary may require) shall be treated for purposes of this
title and section 1324(b)(2) of title 31, United States Code, as
having paid to the Secretary, on the date that the assistance
eligible individual's premium payment is received, payroll taxes
in an amount equal to the portion of such reimbursement which
relates to such premium. To the extent that the amount treated
as paid under the preceding sentence exceeds the amount of such
person's liability for such taxes, the Secretary shall credit or
refund such excess in the same manner as if it were an
overpayment of such taxes.
``(2) Overstatements.--Any overstatement of the
reimbursement to which a person is entitled under this section
(and any amount paid by the Secretary as a result of such
overstatement) shall be treated as an underpayment of payroll
taxes by such person and may be assessed and collected by the
Secretary in the same manner as payroll taxes.
``(3) Reimbursement contingent on payment of remaining
premium.--No reimbursement may be made under this section to a
person with respect to any assistance eligible individual until
after the reduced premium required under
[[Page 123 STAT. 463]]
section 3002(a)(1)(A) of such Act with respect to such
individual has been received.
``(d) Definitions.--For purposes of this section--
``(1) Payroll taxes.--The term `payroll taxes' means--
``(A) amounts required to be deducted and withheld
for the payroll period under section 3402 (relating to
wage withholding),
``(B) amounts required to be deducted for the
payroll period under section 3102 (relating to FICA
employee taxes), and
``(C) amounts of the taxes imposed for the payroll
period under section 3111 (relating to FICA employer
taxes).
``(2) Person.--The term `person' includes any governmental
entity.
``(e) Reporting.--Each person entitled to reimbursement under
subsection (a) for any period shall submit such reports (at such time
and in such manner) as the Secretary may require, including--
``(1) an attestation of involuntary termination of
employment for each covered employee on the basis of whose
termination entitlement to reimbursement is claimed under
subsection (a),
``(2) a report of the amount of payroll taxes offset under
subsection (a) for the reporting period and the estimated
offsets of such taxes for the subsequent reporting period in
connection with reimbursements under subsection (a), and
``(3) a report containing the TINs of all covered employees,
the amount of subsidy reimbursed with respect to each covered
employee and qualified beneficiaries, and a designation with
respect to each covered employee as to whether the subsidy
reimbursement is for coverage of 1 individual or 2 or more
individuals.
``(f) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out this
section, including--
``(1) the requirement to report information or the
establishment of other methods for verifying the correct amounts
of reimbursements under this section, and
``(2) the application of this section to group health plans
that are multiemployer plans (as defined in section 3(37) of the
Employee Retirement Income Security Act of 1974).''.
(B) Social security trust funds held harmless.--In
determining any amount transferred or appropriated to
any fund under the Social Security Act, section 6432 of
the Internal Revenue Code of 1986 shall not be taken
into account.
(C) Clerical amendment.--The table of sections for
subchapter B of chapter 65 of the Internal Revenue Code
of 1986 is amended by adding at the end the following
new item:
``Sec. 6432. COBRA premium assistance.''.
(D) Effective date.--The amendments made by this
paragraph shall apply to premiums to which subsection
(a)(1)(A) applies.
(E) Special rule.--
(i) In general.--In the case of an assistance
eligible individual who pays, with respect to the
first
[[Page 123 STAT. 464]]
period of COBRA continuation coverage to which
subsection (a)(1)(A) applies or the immediately
subsequent period, the full premium amount for
such coverage, the person to whom such payment is
payable shall--
(I) make a reimbursement payment to
such individual for the amount of such
premium paid in excess of the amount
required to be paid under subsection
(a)(1)(A); or
(II) provide credit to the
individual for such amount in a manner
that reduces one or more subsequent
premium payments that the individual is
required to pay under such subsection
for the coverage involved.
(ii) Reimbursing employer.--A person to which
clause (i) applies shall be reimbursed as provided
for in section 6432 of the Internal Revenue Code
of 1986 for any payment made, or credit provided,
to the employee under such clause.
(iii) Payment or credits.-- <<NOTE: Time
period. Deadlines.>> Unless it is reasonable to
believe that the credit for the excess payment in
clause (i)(II) will be used by the assistance
eligible individual within 180 days of the date on
which the person receives from the individual the
payment of the full premium amount, a person to
which clause (i) applies shall make the payment
required under such clause to the individual
within 60 days of such payment of the full premium
amount. If, as of any day within the 180-day
period, it is no longer reasonable to believe that
the credit will be used during that period,
payment equal to the remainder of the credit
outstanding shall be made to the individual within
60 days of such day.
(13) Penalty for failure to notify health plan of cessation
of eligibility for premium assistance.--
(A) In general.--Part I of subchapter B of chapter
68 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 6720C. <<NOTE: 26 USC 6720C.>> PENALTY FOR FAILURE TO NOTIFY
HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR COBRA PREMIUM
ASSISTANCE.
``(a) In General.--Any person required to notify a group health plan
under section 3002(a)(2)(C)) of the Health Insurance Assistance for the
Unemployed Act of 2009 who fails to make such a notification at such
time and in such manner as the Secretary of Labor may require shall pay
a penalty of 110 percent of the premium reduction provided under such
section after termination of eligibility under such subsection.
``(b) Reasonable Cause Exception.--No penalty shall be imposed under
subsection (a) with respect to any failure if it is shown that such
failure is due to reasonable cause and not to willful neglect.''.
[[Page 123 STAT. 465]]
(B) Clerical amendment.--The table of sections of
part I of subchapter B of chapter 68 of such Code is
amended by adding at the end the following new item:
``Sec. 6720C. Penalty for failure to notify health plan of cessation of
eligibility for COBRA premium assistance.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to failures occurring after the
date of the enactment of this Act.
(14) Coordination with hctc.--
(A) In general.--Subsection (g) of section 35 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 35.>> is
amended by redesignating paragraph (9) as paragraph (10)
and inserting after paragraph (8) the following new
paragraph:
``(9) COBRA premium assistance.--In the case of an
assistance eligible individual who receives premium reduction
for COBRA continuation coverage under section 3002(a) of the
Health Insurance Assistance for the Unemployed Act of 2009 for
any month during the taxable year, such individual shall not be
treated as an eligible individual, a certified individual, or a
qualifying family member for purposes of this section or section
7527 with respect to such month.''.
(B) Effective date.--The amendment made by
subparagraph (A) shall apply to taxable years ending
after the date of the enactment of this Act.
(15) Exclusion of cobra premium assistance from gross
income.--
(A) In general.--Part III of subchapter B of chapter
1 of the Internal Revenue Code of 1986 is amended by
inserting after section 139B the following new section:
``SEC. 139C. <<NOTE: 26 USC 139C.>> COBRA PREMIUM ASSISTANCE.
``In the case of an assistance eligible individual (as defined in
section 3002 of the Health Insurance Assistance for the Unemployed Act
of 2009), gross income does not include any premium reduction provided
under subsection (a) of such section.''.
(B) Clerical amendment.--The table of sections for
part III of subchapter B of chapter 1 of such Code is
amended by inserting after the item relating to section
139B the following new item:
``Sec. 139C. COBRA premium assistance.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to taxable years ending after the
date of the enactment of this Act.
(b) Elimination of Premium Subsidy for High-Income Individuals.--
(1) Recapture of subsidy for high-income individuals.--If--
(A) premium assistance is provided under this
section with respect to any COBRA continuation coverage
which covers the taxpayer, the taxpayer's spouse, or any
dependent (within the meaning of section 152 of the
Internal Revenue Code of 1986, determined without regard
to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of
the taxpayer during any portion of the taxable year, and
(B) the taxpayer's modified adjusted gross income
for such taxable year exceeds $125,000 ($250,000 in the
case of a joint return),
[[Page 123 STAT. 466]]
then the tax imposed by chapter 1 of such Code with respect to
the taxpayer for such taxable year shall be increased by the
amount of such assistance.
(2) Phase-in of recapture.--
(A) In general.--In the case of a taxpayer whose
modified adjusted gross income for the taxable year does
not exceed $145,000 ($290,000 in the case of a joint
return), the increase in the tax imposed under paragraph
(1) shall not exceed the phase-in percentage of such
increase (determined without regard to this paragraph).
(B) Phase-in percentage.--For purposes of this
subsection, the term ``phase-in percentage'' means the
ratio (expressed as a percentage) obtained by dividing--
(i) the excess of described in subparagraph
(B) of paragraph (1), by
(ii) $20,000 ($40,000 in the case of a joint
return).
(3) Option for high-income individuals to waive assistance
and avoid recapture.--Notwithstanding subsection (a)(3), an
individual shall not be treated as an assistance eligible
individual for purposes of this section and section 6432 of the
Internal Revenue Code of 1986 if such individual--
(A) makes a permanent election (at such time and in
such form and manner as the Secretary of the Treasury
may prescribe) to waive the right to the premium
assistance provided under this section, and
(B) notifies the entity to whom premiums are
reimbursed under section 6432(a) of such Code of such
election.
(4) Modified adjusted gross income.--For purposes of this
subsection, the term ``modified adjusted gross income'' means
the adjusted gross income (as defined in section 62 of the
Internal Revenue Code of 1986) of the taxpayer for the taxable
year increased by any amount excluded from gross income under
section 911, 931, or 933 of such Code.
(5) Credits not allowed against tax, etc.--For purposes
determining regular tax liability under section 26(b) of such
Code, the increase in tax under this subsection shall not be
treated as a tax imposed under chapter 1 of such Code.
(6) Regulations.--The Secretary of the Treasury shall issue
such regulations or other guidance as are necessary or
appropriate to carry out this subsection, including requirements
that the entity to whom premiums are reimbursed under section
6432(a) of the Internal Revenue Code of 1986 report to the
Secretary, and to each assistance eligible individual, the
amount of premium assistance provided under subsection (a) with
respect to each such individual.
(7) Effective date.--The provisions of this subsection shall
apply to taxable years ending after the date of the enactment of
this Act.
[[Page 123 STAT. 467]]
TITLE IV-- <<NOTE: Health Information Technology for Economic and
Clinical Health Act.>> MEDICARE AND MEDICAID HEALTH INFORMATION
TECHNOLOGY; MISCELLANEOUS MEDICARE PROVISIONS
SEC. 4001. TABLE OF CONTENTS OF TITLE.
The table of contents of this title is as follows:
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
Sec. 4001. Table of contents of title.
Subtitle A--Medicare Incentives
Sec. 4101. Incentives for eligible professionals.
Sec. 4102. Incentives for hospitals.
Sec. 4103. Treatment of payments and savings; implementation funding.
Sec. 4104. Studies and reports on health information technology.
Subtitle B--Medicaid Incentives
Sec. 4201. Medicaid provider HIT adoption and operation payments;
implementation funding.
Subtitle C--Miscellaneous Medicare Provisions
Sec. 4301. Moratoria on certain Medicare regulations.
Sec. 4302. Long-term care hospital technical corrections.
Subtitle A--Medicare Incentives
SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS.
(a) Incentive Payments.--Section 1848 of the Social Security Act (42
U.S.C. 1395w-4) is amended by adding at the end the following new
subsection:
``(o) Incentives for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) Incentive payments.--
``(A) In general.--
``(i) In general.--
<<NOTE: Deadline.>> Subject to the succeeding
subparagraphs of this paragraph, with respect to
covered professional services furnished by an
eligible professional during a payment year (as
defined in subparagraph (E)), if the eligible
professional is a meaningful EHR user (as
determined under paragraph (2)) for the EHR
reporting period with respect to such year, in
addition to the amount otherwise paid under this
part, there also shall be paid to the eligible
professional (or to an employer or facility in the
cases described in clause (A) of section
1842(b)(6)), from the Federal Supplementary
Medical Insurance Trust Fund established under
section 1841 an amount equal to 75 percent of the
Secretary's estimate (based on claims submitted
not later than 2 months after the end of the
payment year) of the allowed charges under this
part for all such covered professional services
furnished by the eligible professional during such
year.
``(ii) No incentive payments with respect to
years after 2016.--No incentive payments may be
[[Page 123 STAT. 468]]
made under this subsection with respect to a year
after 2016.
``(B) Limitations on amounts of incentive
payments.--
``(i) In general.--In no case shall the amount
of the incentive payment provided under this
paragraph for an eligible professional for a
payment year exceed the applicable amount
specified under this subparagraph with respect to
such eligible professional and such year.
``(ii) Amount.--Subject to clauses (iii)
through (v), the applicable amount specified in
this subparagraph for an eligible professional is
as follows:
``(I) For the first payment year for
such professional, $15,000 (or, if the
first payment year for such eligible
professional is 2011 or 2012, $18,000).
``(II) For the second payment year
for such professional, $12,000.
``(III) For the third payment year
for such professional, $8,000.
``(IV) For the fourth payment year
for such professional, $4,000.
``(V) For the fifth payment year for
such professional, $2,000.
``(VI) For any succeeding payment
year for such professional, $0.
``(iii) Phase down for eligible professionals
first adopting ehr after 2013.--If the first
payment year for an eligible professional is after
2013, then the amount specified in this
subparagraph for a payment year for such
professional is the same as the amount specified
in clause (ii) for such payment year for an
eligible professional whose first payment year is
2013.
``(iv) Increase for certain eligible
professionals.--In the case of an eligible
professional who predominantly furnishes services
under this part in an area that is designated by
the Secretary (under section 332(a)(1)(A) of the
Public Health Service Act) as a health
professional shortage area, the amount that would
otherwise apply for a payment year for such
professional under subclauses (I) through (V) of
clause (ii) shall be increased by 10 percent. In
implementing the preceding sentence, the Secretary
may, as determined appropriate, apply provisions
of subsections (m) and (u) of section 1833 in a
similar manner as such provisions apply under such
subsection.
``(v) No incentive payment if first adopting
after 2014.--If the first payment year for an
eligible professional is after 2014 then the
applicable amount specified in this subparagraph
for such professional for such year and any
subsequent year shall be $0.
``(C) Non-application to hospital-based eligible
professionals.--
``(i) In general.--No incentive payment may be
made under this paragraph in the case of a
hospital-based eligible professional.
[[Page 123 STAT. 469]]
``(ii) Hospital-based eligible professional.--
For purposes of clause (i), the term `hospital-
based eligible professional' means, with respect
to covered professional services furnished by an
eligible professional during the EHR reporting
period for a payment year, an eligible
professional, such as a pathologist,
anesthesiologist, or emergency physician, who
furnishes substantially all of such services in a
hospital setting (whether inpatient or outpatient)
and through the use of the facilities and
equipment, including qualified electronic health
records, of the hospital. The determination of
whether an eligible professional is a hospital-
based eligible professional shall be made on the
basis of the site of service (as defined by the
Secretary) and without regard to any employment or
billing arrangement between the eligible
professional and any other provider.
``(D) Payment.--
``(i) Form of payment.--The payment under this
paragraph may be in the form of a single
consolidated payment or in the form of such
periodic installments as the Secretary may
specify.
``(ii) Coordination of application of
limitation for professionals in different
practices.-- <<NOTE: Regulations.>> In the case of
an eligible professional furnishing covered
professional services in more than one practice
(as specified by the Secretary), the Secretary
shall establish rules to coordinate the incentive
payments, including the application of the
limitation on amounts of such incentive payments
under this paragraph, among such practices.
``(iii) Coordination with medicaid.--The
Secretary shall seek, to the maximum extent
practicable, to avoid duplicative requirements
from Federal and State governments to demonstrate
meaningful use of certified EHR technology under
this title and title XIX. The Secretary may also
adjust the reporting periods under such title and
such subsections in order to carry out this
clause.
``(E) Payment year defined.--
``(i) In general.--For purposes of this
subsection, the term `payment year' means a year
beginning with 2011.
``(ii) First, second, etc. payment year.--The
term `first payment year' means, with respect to
covered professional services furnished by an
eligible professional, the first year for which an
incentive payment is made for such services under
this subsection. The terms `second payment year',
`third payment year', `fourth payment year', and
`fifth payment year' mean, with respect to covered
professional services furnished by such eligible
professional, each successive year immediately
following the first payment year for such
professional.
``(2) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible professional shall be treated as a meaningful
EHR
[[Page 123 STAT. 470]]
user for an EHR reporting period for a payment year (or,
for purposes of subsection (a)(7), for an EHR reporting
period under such subsection for a year) if each of the
following requirements is met:
``(i) Meaningful use of certified ehr
technology.--The eligible professional
demonstrates to the satisfaction of the Secretary,
in accordance with subparagraph (C)(i), that
during such period the professional is using
certified EHR technology in a meaningful manner,
which shall include the use of electronic
prescribing as determined to be appropriate by the
Secretary.
``(ii) Information exchange.--The eligible
professional demonstrates to the satisfaction of
the Secretary, in accordance with subparagraph
(C)(i), that during such period such certified EHR
technology is connected in a manner that provides,
in accordance with law and standards applicable to
the exchange of information, for the electronic
exchange of health information to improve the
quality of health care, such as promoting care
coordination.
``(iii) Reporting on measures using ehr.--
Subject to subparagraph (B)(ii) and using such
certified EHR technology, the eligible
professional submits information for such period,
in a form and manner specified by the Secretary,
on such clinical quality measures and such other
measures as selected by the Secretary under
subparagraph (B)(i).
The Secretary may provide for the use of alternative
means for meeting the requirements of clauses (i), (ii),
and (iii) in the case of an eligible professional
furnishing covered professional services in a group
practice (as defined by the Secretary). The Secretary
shall seek to improve the use of electronic health
records and health care quality over time by requiring
more stringent measures of meaningful use selected under
this paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select
measures for purposes of subparagraph (A)(iii) but
only consistent with the following:
``(I) The Secretary shall provide
preference to clinical quality measures
that have been endorsed by the entity
with a contract with the Secretary under
section 1890(a).
``(II) <<NOTE: Federal Register,
publication.>> Prior to any measure
being selected under this subparagraph,
the Secretary shall publish in the
Federal Register such measure and
provide for a period of public comment
on such measure.
``(ii) Limitation.--The Secretary may not
require the electronic reporting of information on
clinical quality measures under subparagraph
(A)(iii) unless the Secretary has the capacity to
accept the information electronically, which may
be on a pilot basis.
``(iii) Coordination of reporting of
information.--In selecting such measures, and in
establishing the form and manner for reporting
measures under subparagraph (A)(iii), the
Secretary shall seek to avoid
[[Page 123 STAT. 471]]
redundant or duplicative reporting otherwise
required, including reporting under subsection
(k)(2)(C).
``(C) Demonstration of meaningful use of certified
ehr technology and information exchange.--
``(i) In general.--A professional may satisfy
the demonstration requirement of clauses (i) and
(ii) of subparagraph (A) through means specified
by the Secretary, which may include--
``(I) an attestation;
``(II) the submission of claims with
appropriate coding (such as a code
indicating that a patient encounter was
documented using certified EHR
technology);
``(III) a survey response;
``(IV) reporting under subparagraph
(A)(iii); and
``(V) other means specified by the
Secretary.
``(ii) Use of part d data.--Notwithstanding
sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), the
Secretary may use data regarding drug claims
submitted for purposes of section 1860D-15 that
are necessary for purposes of subparagraph (A).
``(3) Application.--
``(A) Physician reporting system rules.--Paragraphs
(5), (6), and (8) of subsection (k) shall apply for
purposes of this subsection in the same manner as they
apply for purposes of such subsection.
``(B) Coordination with other payments.--The
provisions of this subsection shall not be taken into
account in applying the provisions of subsection (m) of
this section and of section 1833(m) and any payment
under such provisions shall not be taken into account in
computing allowable charges under this subsection.
``(C) Limitations on review.--There shall be no
administrative or judicial review under section 1869,
section 1878, or otherwise, of--
``(i) the methodology and standards for
determining payment amounts under this subsection
and payment adjustments under subsection
(a)(7)(A), including the limitation under
paragraph (1)(B) and coordination under clauses
(ii) and (iii) of paragraph (1)(D);
``(ii) the methodology and standards for
determining a meaningful EHR user under paragraph
(2), including selection of measures under
paragraph (2)(B), specification of the means of
demonstrating meaningful EHR use under paragraph
(2)(C), and the hardship exception under
subsection (a)(7)(B);
``(iii) the methodology and standards for
determining a hospital-based eligible professional
under paragraph (1)(C); and
``(iv) the specification of reporting periods
under paragraph (5) and the selection of the form
of payment under paragraph (1)(D)(i).
``(D) Posting on website.--The Secretary shall post
on the Internet website of the Centers for Medicare &
Medicaid Services, in an easily understandable format, a
list of the names, business addresses, and business
phone
[[Page 123 STAT. 472]]
numbers of the eligible professionals who are meaningful
EHR users and, as determined appropriate by the
Secretary, of group practices receiving incentive
payments under paragraph (1).
``(4) Certified ehr technology defined.--For purposes of
this section, the term `certified EHR technology' means a
qualified electronic health record (as defined in section
3000(13) of the Public Health Service Act) that is certified
pursuant to section 3001(c)(5) of such Act as meeting standards
adopted under section 3004 of such Act that are applicable to
the type of record involved (as determined by the Secretary,
such as an ambulatory electronic health record for office-based
physicians or an inpatient hospital electronic health record for
hospitals).
``(5) Definitions.--For purposes of this subsection:
``(A) Covered professional services.--The term
`covered professional services' has the meaning given
such term in subsection (k)(3).
``(B) EHR reporting period.--The term `EHR reporting
period' means, with respect to a payment year, any
period (or periods) as specified by the Secretary.
``(C) Eligible professional.--The term `eligible
professional' means a physician, as defined in section
1861(r).''.
(b) Incentive Payment Adjustment.--Section 1848(a) of the Social
Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the
following new paragraph:
``(7) Incentives for meaningful use of certified ehr
technology.--
``(A) Adjustment.--
``(i) In general.--Subject to subparagraphs
(B) and (D), with respect to covered professional
services furnished by an eligible professional
during 2015 or any subsequent payment year, if the
eligible professional is not a meaningful EHR user
(as determined under subsection (o)(2)) for an EHR
reporting period for the year, the fee schedule
amount for such services furnished by such
professional during the year (including the fee
schedule amount for purposes of determining a
payment based on such amount) shall be equal to
the applicable percent of the fee schedule amount
that would otherwise apply to such services under
this subsection (determined after application of
paragraph (3) but without regard to this
paragraph).
``(ii) Applicable percent.--Subject to clause
(iii), for purposes of clause (i), the term
`applicable percent' means--
``(I) for 2015, 99 percent (or, in
the case of an eligible professional who
was subject to the application of the
payment adjustment under section
1848(a)(5) for 2014, 98 percent);
``(II) for 2016, 98 percent; and
``(III) for 2017 and each subsequent
year, 97 percent.
``(iii) Authority to decrease applicable
percentage for 2018 and subsequent years.--For
2018 and each subsequent year, if the Secretary
finds
[[Page 123 STAT. 473]]
that the proportion of eligible professionals who
are meaningful EHR users (as determined under
subsection (o)(2)) is less than 75 percent, the
applicable percent shall be decreased by 1
percentage point from the applicable percent in
the preceding year, but in no case shall the
applicable percent be less than 95 percent.
``(B) Significant hardship exception.--The Secretary
may, on a case-by-case basis, exempt an eligible
professional from the application of the payment
adjustment under subparagraph (A) if the Secretary
determines, subject to annual renewal, that compliance
with the requirement for being a meaningful EHR user
would result in a significant hardship, such as in the
case of an eligible professional who practices in a
rural area without sufficient Internet access. In no
case may an eligible professional be granted an
exemption under this subparagraph for more than 5 years.
``(C) Application of physician reporting system
rules.--Paragraphs (5), (6), and (8) of subsection (k)
shall apply for purposes of this paragraph in the same
manner as they apply for purposes of such subsection.
``(D) Non-application to hospital-based eligible
professionals.--No payment adjustment may be made under
subparagraph (A) in the case of hospital-based eligible
professionals (as defined in subsection (o)(1)(C)(ii)).
``(E) Definitions.--For purposes of this paragraph:
``(i) Covered professional services.--The term
`covered professional services' has the meaning
given such term in subsection (k)(3).
``(ii) EHR reporting period.--The term `EHR
reporting period' means, with respect to a year, a
period (or periods) specified by the Secretary.
``(iii) Eligible professional.--The term
`eligible professional' means a physician, as
defined in section 1861(r).''.
(c) Application to Certain MA-Affiliated Eligible Professionals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended
by adding at the end the following new subsection:
``(l) Application of Eligible Professional Incentives for Certain MA
Organizations for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) In general.--Subject to paragraphs (3) and (4), in the
case of a qualifying MA organization, the provisions of sections
1848(o) and 1848(a)(7) shall apply with respect to eligible
professionals described in paragraph (2) of the organization who
the organization attests under paragraph (6) to be meaningful
EHR users in a similar manner as they apply to eligible
professionals under such sections. Incentive payments under
paragraph (3) shall be made to and payment adjustments under
paragraph (4) shall apply to such qualifying organizations.
``(2) Eligible professional described.--With respect to a
qualifying MA organization, an eligible professional described
in this paragraph is an eligible professional (as defined for
purposes of section 1848(o)) who--
``(A)(i) is employed by the organization; or
[[Page 123 STAT. 474]]
``(ii)(I) is employed by, or is a partner of, an
entity that through contract with the organization
furnishes at least 80 percent of the entity's Medicare
patient care services to enrollees of such organization;
and
``(II) furnishes at least 80 percent of the
professional services of the eligible professional
covered under this title to enrollees of the
organization; and
``(B) furnishes, on average, at least 20 hours per
week of patient care services.
``(3) Eligible professional incentive payments.--
``(A) In general.--In applying section 1848(o) under
paragraph (1), instead of the additional payment amount
under section 1848(o)(1)(A) and subject to subparagraph
(B), the Secretary may substitute an amount determined
by the Secretary to the extent feasible and practical to
be similar to the estimated amount in the aggregate that
would be payable if payment for services furnished by
such professionals was payable under part B instead of
this part.
``(B) Avoiding duplication of payments.--
``(i) In general.--In the case of an eligible
professional described in paragraph (2)--
``(I) that is eligible for the
maximum incentive payment under section
1848(o)(1)(A) for the same payment
period, the payment incentive shall be
made only under such section and not
under this subsection; and
``(II) that is eligible for less
than such maximum incentive payment for
the same payment period, the payment
incentive shall be made only under this
subsection and not under section
1848(o)(1)(A).
``(ii) Methods.--In the case of an eligible
professional described in paragraph (2) who is
eligible for an incentive payment under section
1848(o)(1)(A) but is not described in clause (i)
for the same payment period, the Secretary shall
develop a process--
``(I) to ensure that duplicate
payments are not made with respect to an
eligible professional both under this
subsection and under section
1848(o)(1)(A); and
``(II) to collect data from Medicare
Advantage organizations to ensure
against such duplicate payments.
``(C) Fixed schedule for application of limitation
on incentive payments for all eligible professionals.--
In applying section 1848(o)(1)(B)(ii) under subparagraph
(A), <<NOTE: Deadline.>> in accordance with rules
specified by the Secretary, a qualifying MA organization
shall specify a year (not earlier than 2011) that shall
be treated as the first payment year for all eligible
professionals with respect to such organization.
``(4) Payment adjustment.--
``(A) In general.--In applying section 1848(a)(7)
under paragraph (1), instead of the payment adjustment
being an applicable percent of the fee schedule amount
for a year under such section, subject to subparagraph
(D), the
[[Page 123 STAT. 475]]
payment adjustment under paragraph (1) shall be equal to
the percent specified in subparagraph (B) for such year
of the payment amount otherwise provided under this
section for such year.
``(B) Specified percent.--The percent specified
under this subparagraph for a year is 100 percent minus
a number of percentage points equal to the product of--
``(i) the number of percentage points by which
the applicable percent (under section
1848(a)(7)(A)(ii)) for the year is less than 100
percent; and
``(ii) the Medicare physician expenditure
proportion specified in subparagraph (C) for the
year.
``(C) Medicare physician expenditure proportion.--
The Medicare physician expenditure proportion under this
subparagraph for a year is the Secretary's estimate of
the proportion, of the expenditures under parts A and B
that are not attributable to this part, that are
attributable to expenditures for physicians' services.
``(D) Application of payment adjustment.--In the
case that a qualifying MA organization attests that not
all eligible professionals of the organization are
meaningful EHR users with respect to a year, the
Secretary shall apply the payment adjustment under this
paragraph based on the proportion of all such eligible
professionals of the organization that are not
meaningful EHR users for such year.
``(5) Qualifying ma organization defined.--In this
subsection and subsection (m), the term `qualifying MA
organization' means a Medicare Advantage organization that is
organized as a health maintenance organization (as defined in
section 2791(b)(3) of the Public Health Service Act).
``(6) Meaningful ehr user attestation.--
<<NOTE: Attestation.>> For purposes of this subsection and
subsection (m), a qualifying MA organization shall submit an
attestation, in a form and manner specified by the Secretary
which may include the submission of such attestation as part of
submission of the initial bid under section 1854(a)(1)(A)(iv),
identifying--
``(A) whether each eligible professional described
in paragraph (2), with respect to such organization is a
meaningful EHR user (as defined in section 1848(o)(2))
for a year specified by the Secretary; and
``(B) whether each eligible hospital described in
subsection (m)(1), with respect to such organization, is
a meaningful EHR user (as defined in section 1886(n)(3))
for an applicable period specified by the Secretary.
``(7) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names, business addresses, and business phone numbers of--
``(A) each qualifying MA organization receiving an
incentive payment under this subsection for eligible
professionals of the organization; and
``(B) the eligible professionals of such
organization for which such incentive payment is based.
``(8) Limitation on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise, of--
[[Page 123 STAT. 476]]
``(A) the methodology and standards for determining
payment amounts and payment adjustments under this
subsection, including avoiding duplication of payments
under paragraph (3)(B) and the specification of rules
for the fixed schedule for application of limitation on
incentive payments for all eligible professionals under
paragraph (3)(C);
``(B) the methodology and standards for determining
eligible professionals under paragraph (2); and
``(C) the methodology and standards for determining
a meaningful EHR user under section 1848(o)(2),
including specification of the means of demonstrating
meaningful EHR use under section 1848(o)(3)(C) and
selection of measures under section 1848(o)(3)(B).''.
(d) Study and Report Relating to MA Organizations.--
(1) Study.--The Secretary of Health and Human Services shall
conduct a study on the extent to which and manner in which
payment incentives and adjustments (such as under sections
1848(o) and 1848(a)(7) of the Social Security Act) could be made
available to professionals, as defined in 1861(r), who are not
eligible for HIT incentive payments under section 1848(o) and
receive payments for Medicare patient services nearly-
exclusively through contractual arrangements with one or more
Medicare Advantage organizations, or an intermediary
organization or organizations with contracts with Medicare
Advantage organizations. Such study shall assess approaches for
measuring meaningful use of qualified EHR technology among such
professionals and mechanisms for delivering incentives and
adjustments to those professionals, including through incentive
payments and adjustments through Medicare Advantage
organizations or intermediary organizations.
(2) Report.--Not later than 120 days after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to Congress a report on the findings and
the conclusions of the study conducted under paragraph (1),
together with recommendations for such legislation and
administrative action as the Secretary determines appropriate.
(e) Conforming Amendments.--Section 1853 of the Social Security Act
(42 U.S.C. 1395w-23) is amended--
(1) in subsection (a)(1)(A), by striking ``and (i)'' and
inserting ``(i), and (l)'';
(2) in subsection (c)--
(A) in paragraph (1)(D)(i), by striking ``section
1886(h)'' and inserting ``sections 1848(o) and
1886(h)''; and
(B) in paragraph (6)(A), by inserting after ``under
part B,'' the following: ``excluding expenditures
attributable to subsections (a)(7) and (o) of section
1848,''; and
(3) in subsection (f), by inserting ``and for payments under
subsection (l)'' after ``with the organization''.
(f) Conforming Amendments to E-Prescribing.--
(1) Section 1848(a)(5)(A) of the Social Security Act (42
U.S.C. 1395w-4(a)(5)(A)) is amended--
(A) in clause (i), by striking ``or any subsequent
year'' and inserting ``, 2013 or 2014''; and
(B) in clause (ii), by striking ``and each
subsequent year''.
[[Page 123 STAT. 477]]
(2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-4(m)(2))
is amended--
(A) in subparagraph (A), by striking ``For 2009''
and inserting ``Subject to subparagraph (D), for 2009'';
and
(B) by adding at the end the following new
subparagraph:
``(D) Limitation with respect to ehr incentive
payments.--The provisions of this paragraph shall not
apply to an eligible professional (or, in the case of a
group practice under paragraph (3)(C), to the group
practice) if, for the EHR reporting period the eligible
professional (or group practice) receives an incentive
payment under subsection (o)(1)(A) with respect to a
certified EHR technology (as defined in subsection
(o)(4)) that has the capability of electronic
prescribing.''.
SEC. 4102. INCENTIVES FOR HOSPITALS.
(a) Incentive Payment.--
(1) In general.--Section 1886 of the Social Security Act (42
U.S.C. 1395ww) is amended by adding at the end the following new
subsection:
``(n) Incentives for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) In general.--Subject to the succeeding provisions of
this subsection, with respect to inpatient hospital services
furnished by an eligible hospital during a payment year (as
defined in paragraph (2)(G)), if the eligible hospital is a
meaningful EHR user (as determined under paragraph (3)) for the
EHR reporting period with respect to such year, in addition to
the amount otherwise paid under this section, there also shall
be paid to the eligible hospital, from the Federal Hospital
Insurance Trust Fund established under section 1817, an amount
equal to the applicable amount specified in paragraph (2)(A) for
the hospital for such payment year.
``(2) Payment amount.--
``(A) In general.--Subject to the succeeding
subparagraphs of this paragraph, the applicable amount
specified in this subparagraph for an eligible hospital
for a payment year is equal to the product of the
following:
``(i) Initial amount.--The sum of--
``(I) the base amount specified in
subparagraph (B); plus
``(II) the discharge related amount
specified in subparagraph (C) for a 12-
month period selected by the Secretary
with respect to such payment year.
``(ii) Medicare share.--The Medicare share as
specified in subparagraph (D) for the eligible
hospital for a period selected by the Secretary
with respect to such payment year.
``(iii) Transition factor.--The transition
factor specified in subparagraph (E) for the
eligible hospital for the payment year.
``(B) Base amount.--The base amount specified in
this subparagraph is $2,000,000.
``(C) Discharge related amount.--The discharge
related amount specified in this subparagraph for a 12-
[[Page 123 STAT. 478]]
month period selected by the Secretary shall be
determined as the sum of the amount, estimated based
upon total discharges for the eligible hospital
(regardless of any source of payment) for the period,
for each discharge up to the 23,000th discharge as
follows:
``(i) For the first through 1,149th discharge,
$0.
``(ii) For the 1,150th through the 23,000th
discharge, $200.
``(iii) For any discharge greater than the
23,000th, $0.
``(D) Medicare share.--The Medicare share specified
under this subparagraph for an eligible hospital for a
period selected by the Secretary for a payment year is
equal to the fraction--
``(i) the numerator of which is the sum (for
such period and with respect to the eligible
hospital) of--
``(I) the estimated number of
inpatient-bed-days (as established by
the Secretary) which are attributable to
individuals with respect to whom payment
may be made under part A; and
``(II) the estimated number of
inpatient-bed-days (as so established)
which are attributable to individuals
who are enrolled with a Medicare
Advantage organization under part C; and
``(ii) the denominator of which is the product
of--
``(I) the estimated total number of
inpatient-bed-days with respect to the
eligible hospital during such period;
and
``(II) the estimated total amount of
the eligible hospital's charges during
such period, not including any charges
that are attributable to charity care
(as such term is used for purposes of
hospital cost reporting under this
title), divided by the estimated total
amount of the hospital's charges during
such period.
<<NOTE: Data.>> Insofar as the Secretary determines that
data are not available on charity care necessary to
calculate the portion of the formula specified in clause
(ii)(II), the Secretary shall use data on uncompensated
care and may adjust such data so as to be an appropriate
proxy for charity care including a downward adjustment
to eliminate bad debt data from uncompensated care data.
In the absence of the data necessary, with respect to a
hospital, for the Secretary to compute the amount
described in clause (ii)(II), the amount under such
clause shall be deemed to be 1. In the absence of data,
with respect to a hospital, necessary to compute the
amount described in clause (i)(II), the amount under
such clause shall be deemed to be 0.
``(E) Transition factor specified.--
``(i) In general.--Subject to clause (ii), the
transition factor specified in this subparagraph
for an eligible hospital for a payment year is as
follows:
``(I) For the first payment year for
such hospital, 1.
``(II) For the second payment year
for such hospital, \3/4\.
[[Page 123 STAT. 479]]
``(III) For the third payment year
for such hospital, \1/2\.
``(IV) For the fourth payment year
for such hospital, \1/4\.
``(V) For any succeeding payment
year for such hospital, 0.
``(ii) Phase down for eligible hospitals first
adopting ehr after 2013.--If the first payment
year for an eligible hospital is after 2013, then
the transition factor specified in this
subparagraph for a payment year for such hospital
is the same as the amount specified in clause (i)
for such payment year for an eligible hospital for
which the first payment year is 2013. If the first
payment year for an eligible hospital is after
2015 then the transition factor specified in this
subparagraph for such hospital and for such year
and any subsequent year shall be 0.
``(F) Form of payment.--The payment under this
subsection for a payment year may be in the form of a
single consolidated payment or in the form of such
periodic installments as the Secretary may specify.
``(G) Payment year defined.--
``(i) In general.--For purposes of this
subsection, the term `payment year' means a fiscal
year beginning with fiscal year 2011.
``(ii) First, second, etc. payment year.--The
term `first payment year' means, with respect to
inpatient hospital services furnished by an
eligible hospital, the first fiscal year for which
an incentive payment is made for such services
under this subsection. The terms `second payment
year', `third payment year', and `fourth payment
year' mean, with respect to an eligible hospital,
each successive year immediately following the
first payment year for that hospital.
``(3) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible hospital shall be treated as a meaningful EHR
user for an EHR reporting period for a payment year (or,
for purposes of subsection (b)(3)(B)(ix), for an EHR
reporting period under such subsection for a fiscal
year) if each of the following requirements are met:
``(i) Meaningful use of certified ehr
technology.--The eligible hospital demonstrates to
the satisfaction of the Secretary, in accordance
with subparagraph (C)(i), that during such period
the hospital is using certified EHR technology in
a meaningful manner.
``(ii) Information exchange.--The eligible
hospital demonstrates to the satisfaction of the
Secretary, in accordance with subparagraph (C)(i),
that during such period such certified EHR
technology is connected in a manner that provides,
in accordance with law and standards applicable to
the exchange of information, for the electronic
exchange of health information to improve the
quality of health care, such as promoting care
coordination.
[[Page 123 STAT. 480]]
``(iii) Reporting on measures using ehr.--
Subject to subparagraph (B)(ii) and using such
certified EHR technology, the eligible hospital
submits information for such period, in a form and
manner specified by the Secretary, on such
clinical quality measures and such other measures
as selected by the Secretary under subparagraph
(B)(i).
The Secretary shall seek to improve the use of
electronic health records and health care quality over
time by requiring more stringent measures of meaningful
use selected under this paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select
measures for purposes of subparagraph (A)(iii) but
only consistent with the following:
``(I) The Secretary shall provide
preference to clinical quality measures
that have been selected for purposes of
applying subsection (b)(3)(B)(viii) or
that have been endorsed by the entity
with a contract with the Secretary under
section 1890(a).
``(II) <<NOTE: Federal Register,
publication.>> Prior to any measure
(other than a clinical quality measure
that has been selected for purposes of
applying subsection (b)(3)(B)(viii))
being selected under this subparagraph,
the Secretary shall publish in the
Federal Register such measure and
provide for a period of public comment
on such measure.
``(ii) Limitations.--The Secretary may not
require the electronic reporting of information on
clinical quality measures under subparagraph
(A)(iii) unless the Secretary has the capacity to
accept the information electronically, which may
be on a pilot basis.
``(iii) Coordination of reporting of
information.--In selecting such measures, and in
establishing the form and manner for reporting
measures under subparagraph (A)(iii), the
Secretary shall seek to avoid redundant or
duplicative reporting with reporting otherwise
required, including reporting under subsection
(b)(3)(B)(viii).
``(C) Demonstration of meaningful use of certified
ehr technology and information exchange.--
``(i) In general.--An eligible hospital may
satisfy the demonstration requirement of clauses
(i) and (ii) of subparagraph (A) through means
specified by the Secretary, which may include--
``(I) an attestation;
``(II) the submission of claims with
appropriate coding (such as a code
indicating that inpatient care was
documented using certified EHR
technology);
``(III) a survey response;
``(IV) reporting under subparagraph
(A)(iii); and
``(V) other means specified by the
Secretary.
[[Page 123 STAT. 481]]
``(ii) Use of part d data.--Notwithstanding
sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), the
Secretary may use data regarding drug claims
submitted for purposes of section 1860D-15 that
are necessary for purposes of subparagraph (A).
``(4) Application.--
``(A) Limitations on review.--There shall be no
administrative or judicial review under section 1869,
section 1878, or otherwise, of--
``(i) the methodology and standards for
determining payment amounts under this subsection
and payment adjustments under subsection
(b)(3)(B)(ix), including selection of periods
under paragraph (2) for determining, and making
estimates or using proxies of, discharges under
paragraph (2)(C) and inpatient-bed-days, hospital
charges, charity charges, and Medicare share under
paragraph (2)(D);
``(ii) the methodology and standards for
determining a meaningful EHR user under paragraph
(3), including selection of measures under
paragraph (3)(B), specification of the means of
demonstrating meaningful EHR use under paragraph
(3)(C), and the hardship exception under
subsection (b)(3)(B)(ix)(II); and
``(iii) the specification of EHR reporting
periods under paragraph (6)(B) and the selection
of the form of payment under paragraph (2)(F).
``(B) Posting on website.--The Secretary shall post
on the Internet website of the Centers for Medicare &
Medicaid Services, in an easily understandable format, a
list of the names of the eligible hospitals that are
meaningful EHR users under this subsection or subsection
(b)(3)(B)(ix) (and a list of the names of critical
access hospitals to which paragraph (3) or (4) of
section 1814(l) applies), and other relevant data as
determined appropriate by the Secretary. The Secretary
shall ensure that an eligible hospital (or critical
access hospital) has the opportunity to review the other
relevant data that are to be made public with respect to
the hospital (or critical access hospital) prior to such
data being made public.
``(5) Certified ehr technology defined.--The term `certified
EHR technology' has the meaning given such term in section
1848(o)(4).
``(6) Definitions.--For purposes of this subsection:
``(A) EHR reporting period.--The term `EHR reporting
period' means, with respect to a payment year, any
period (or periods) as specified by the Secretary.
``(B) Eligible hospital.--The term `eligible
hospital' means a subsection (d) hospital.''.
(2) Critical access hospitals.--Section 1814(l) of the
Social Security Act (42 U.S.C. 1395f(l)) is amended--
(A) in paragraph (1), by striking ``paragraph (2)''
and inserting ``the subsequent paragraphs of this
subsection''; and
(B) <<NOTE: Regulations. Applicability.>> by adding
at the end the following new paragraph:
``(3)(A) The following rules shall apply in determining payment and
reasonable costs under paragraph (1) for costs described in subparagraph
(C) for a critical access hospital that would be a
[[Page 123 STAT. 482]]
meaningful EHR user (as would be determined under paragraph (3) of
section 1886(n)) for an EHR reporting period for a cost reporting period
beginning during a payment year if such critical access hospital was
treated as an eligible hospital under such section:
``(i) The Secretary shall compute reasonable costs by
expensing such costs in a single payment year and not
depreciating such costs over a period of years (and shall
include as costs with respect to cost reporting periods
beginning during a payment year costs from previous cost
reporting periods to the extent they have not been fully
depreciated as of the period involved).
``(ii) There shall be substituted for the Medicare share
that would otherwise be applied under paragraph (1) a percent
(not to exceed 100 percent) equal to the sum of--
``(I) the Medicare share (as would be specified
under paragraph (2)(D) of section 1886(n)) for such
critical access hospital if such critical access
hospital was treated as an eligible hospital under such
section; and
``(II) 20 percentage points.
``(B) The payment under this paragraph with respect to a critical
access hospital shall be paid through a prompt interim payment (subject
to reconciliation) after submission and review of such information (as
specified by the Secretary) necessary to make such payment, including
information necessary to apply this paragraph. In no case may payment
under this paragraph be made with respect to a cost reporting period
beginning during a payment year after 2015 and in no case may a critical
access hospital receive payment under this paragraph with respect to
more than 4 consecutive payment years.
``(C) The costs described in this subparagraph are costs for the
purchase of certified EHR technology to which purchase depreciation
(excluding interest) would apply if payment was made under paragraph (1)
and not under this paragraph.
``(D) For purposes of this paragraph, paragraph (4), and paragraph
(5), the terms `certified EHR technology', `eligible hospital', `EHR
reporting period', and `payment year' have the meanings given such terms
in sections 1886(n).''.
(b) Incentive Market Basket Adjustment.--
(1) In general.--Section 1886(b)(3)(B) of the Social
Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
(A) in clause (viii)(I), by inserting ``(or,
beginning with fiscal year 2015, by one-quarter)'' after
``2.0 percentage points''; and
(B) by adding at the end the following new clause:
``(ix)(I) For purposes of clause (i) for fiscal year 2015 and each
subsequent fiscal year, in the case of an eligible hospital (as defined
in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined
in subsection (n)(3)) for an EHR reporting period for such fiscal year,
three-quarters of the applicable percentage increase otherwise
applicable under clause (i) for such fiscal year shall be reduced by
33\1/3\ percent for fiscal year 2015, 66\2/3\ percent for fiscal year
2016, and 100 percent for fiscal year 2017 and each subsequent fiscal
year. <<NOTE: Applicability.>> Such reduction shall apply only with
respect to the fiscal year involved and the Secretary shall not take
into account such reduction in computing the applicable percentage
increase under clause (i) for a subsequent fiscal year.
[[Page 123 STAT. 483]]
``(II) The Secretary may, on a case-by-case basis, exempt a
subsection (d) hospital from the application of subclause (I) with
respect to a fiscal year if the Secretary determines, subject to annual
renewal, that requiring such hospital to be a meaningful EHR user during
such fiscal year would result in a significant hardship, such as in the
case of a hospital in a rural area without sufficient Internet access.
In no case may a hospital be granted an exemption under this subclause
for more than 5 years.
``(III) For fiscal year 2015 and each subsequent fiscal year, a
State in which hospitals are paid for services under section 1814(b)(3)
shall adjust the payments to each subsection (d) hospital in the State
that is not a meaningful EHR user (as defined in subsection (n)(3)) in a
manner that is designed to result in an aggregate reduction in payments
to hospitals in the State that is equivalent to the aggregate reduction
that would have occurred if payments had been reduced to each subsection
(d) hospital in the State in a manner comparable to the reduction under
the previous provisions of this clause. <<NOTE: Reports.>> The State
shall report to the Secretary the methodology it will use to make the
payment adjustment under the previous sentence.
``(IV) For purposes of this clause, the term `EHR reporting period'
means, with respect to a fiscal year, any period (or periods) as
specified by the Secretary.''.
(2) Critical access hospitals.--Section 1814(l) of the
Social Security Act (42 U.S.C. 1395f(l)), as amended by
subsection (a)(2), is further amended by adding at the end the
following new paragraphs:
``(4)(A) <<NOTE: Applicability.>> Subject to subparagraph (C), for
cost reporting periods beginning in fiscal year 2015 or a subsequent
fiscal year, in the case of a critical access hospital that is not a
meaningful EHR user (as would be determined under paragraph (3) of
section 1886(n) if such critical access hospital was treated as an
eligible hospital under such section) for an EHR reporting period with
respect to such fiscal year, paragraph (1) shall be applied by
substituting the applicable percent under subparagraph (B) for the
percent described in such paragraph (1).
``(B) <<NOTE: Applicability.>> The percent described in this
subparagraph is--
``(i) for fiscal year 2015, 100.66 percent;
``(ii) for fiscal year 2016, 100.33 percent; and
``(iii) for fiscal year 2017 and each subsequent fiscal
year, 100 percent.
``(C) The provisions of subclause (II) of section 1886(b)(3)(B)(ix)
shall apply with respect to subparagraph (A) for a critical access
hospital with respect to a cost reporting period beginning in a fiscal
year in the same manner as such subclause applies with respect to
subclause (I) of such section for a subsection (d) hospital with respect
to such fiscal year.
``(5) There shall be no administrative or judicial review under
section 1869, section 1878, or otherwise, of--
``(A) the methodology and standards for determining the
amount of payment and reasonable cost under paragraph (3) and
payment adjustments under paragraph (4), including selection of
periods under section 1886(n)(2) for determining, and making
estimates or using proxies of, inpatient-bed-days, hospital
charges, charity charges, and Medicare share under subparagraph
(D) of section 1886(n)(2);
[[Page 123 STAT. 484]]
``(B) the methodology and standards for determining a
meaningful EHR user under section 1886(n)(3) as would apply if
the hospital was treated as an eligible hospital under section
1886(n), and the hardship exception under paragraph (4)(C);
``(C) the specification of EHR reporting periods under
section 1886(n)(6)(B) as applied under paragraphs (3) and (4);
and
``(D) the identification of costs for purposes of paragraph
(3)(C).''.
(c) Application to Certain MA-Affiliated Eligible Hospitals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as amended
by section 4101(c), is further amended by adding at the end the
following new subsection:
``(m) Application of Eligible Hospital Incentives for Certain MA
Organizations for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) Application.--Subject to paragraphs (3) and (4), in
the case of a qualifying MA organization, the provisions of
sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with respect
to eligible hospitals described in paragraph (2) of the
organization which the organization attests under subsection
(l)(6) to be meaningful EHR users in a similar manner as they
apply to eligible hospitals under such sections. Incentive
payments under paragraph (3) shall be made to and payment
adjustments under paragraph (4) shall apply to such qualifying
organizations.
``(2) Eligible hospital described.--With respect to a
qualifying MA organization, an eligible hospital described in
this paragraph is an eligible hospital (as defined in section
1886(n)(6)(A)) that is under common corporate governance with
such organization and serves individuals enrolled under an MA
plan offered by such organization.
``(3) Eligible hospital incentive payments.--
``(A) In general.--In applying section 1886(n)(2)
under paragraph (1), instead of the additional payment
amount under section 1886(n)(2), there shall be
substituted an amount determined by the Secretary to be
similar to the estimated amount in the aggregate that
would be payable if payment for services furnished by
such hospitals was payable under part A instead of this
part. In implementing the previous sentence, the
Secretary--
``(i) shall, insofar as data to determine the
discharge related amount under section
1886(n)(2)(C) for an eligible hospital are not
available to the Secretary, use such alternative
data and methodology to estimate such discharge
related amount as the Secretary determines
appropriate; and
``(ii) shall, insofar as data to determine the
medicare share described in section 1886(n)(2)(D)
for an eligible hospital are not available to the
Secretary, use such alternative data and
methodology to estimate such share, which data and
methodology may include use of the inpatient-bed-
days (or discharges) with respect to an eligible
hospital during the appropriate period which are
attributable to both individuals for
[[Page 123 STAT. 485]]
whom payment may be made under part A or
individuals enrolled in an MA plan under a
Medicare Advantage organization under this part as
a proportion of the estimated total number of
patient-bed-days (or discharges) with respect to
such hospital during such period.
``(B) Avoiding duplication of payments.--
``(i) In general.--In the case of a hospital
that for a payment year is an eligible hospital
described in paragraph (2) and for which at least
one-third of their discharges (or bed-days) of
Medicare patients for the year are covered under
part A, payment for the payment year shall be made
only under section 1886(n) and not under this
subsection.
``(ii) Methods.--In the case of a hospital
that is an eligible hospital described in
paragraph (2) and also is eligible for an
incentive payment under section 1886(n) but is not
described in clause (i) for the same payment
period, the Secretary shall develop a process--
``(I) to ensure that duplicate
payments are not made with respect to an
eligible hospital both under this
subsection and under section 1886(n);
and
``(II) to collect data from Medicare
Advantage organizations to ensure
against such duplicate payments.
``(4) Payment adjustment.--
``(A) Subject to paragraph (3), in the case of a
qualifying MA organization (as defined in section
1853(l)(5)), if, according to the attestation of the
organization submitted under subsection (l)(6) for an
applicable period, one or more eligible hospitals (as
defined in section 1886(n)(6)(A)) that are under common
corporate governance with such organization and that
serve individuals enrolled under a plan offered by such
organization are not meaningful EHR users (as defined in
section 1886(n)(3)) with respect to a period, the
payment amount payable under this section for such
organization for such period shall be the percent
specified in subparagraph (B) for such period of the
payment amount otherwise provided under this section for
such period.
``(B) Specified percent.--The percent specified
under this subparagraph for a year is 100 percent minus
a number of percentage points equal to the product of--
``(i) the number of the percentage point
reduction effected under section
1886(b)(3)(B)(ix)(I) for the period; and
``(ii) the Medicare hospital expenditure
proportion specified in subparagraph (C) for the
year.
``(C) Medicare hospital expenditure proportion.--The
Medicare hospital expenditure proportion under this
subparagraph for a year is the Secretary's estimate of
the proportion, of the expenditures under parts A and B
that are not attributable to this part, that are
attributable to expenditures for inpatient hospital
services.
[[Page 123 STAT. 486]]
``(D) Application of payment adjustment.--In the
case that a qualifying MA organization attests that not
all eligible hospitals are meaningful EHR users with
respect to an applicable period, the Secretary shall
apply the payment adjustment under this paragraph based
on a methodology specified by the Secretary, taking into
account the proportion of such eligible hospitals, or
discharges from such hospitals, that are not meaningful
EHR users for such period.
``(5) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format--
``(A) a list of the names, business addresses, and
business phone numbers of each qualifying MA
organization receiving an incentive payment under this
subsection for eligible hospitals described in paragraph
(2); and
``(B) a list of the names of the eligible hospitals
for which such incentive payment is based.
``(6) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise, of--
``(A) the methodology and standards for determining
payment amounts and payment adjustments under this
subsection, including avoiding duplication of payments
under paragraph (3)(B);
``(B) the methodology and standards for determining
eligible hospitals under paragraph (2); and
``(C) the methodology and standards for determining
a meaningful EHR user under section 1886(n)(3),
including specification of the means of demonstrating
meaningful EHR use under subparagraph (C) of such
section and selection of measures under subparagraph (B)
of such section.''.
(d) Conforming Amendments.--
(1) Section 1814(b) of the Social Security Act (42 U.S.C.
1395f(b)) is amended--
(A) in paragraph (3), in the matter preceding
subparagraph (A), by inserting ``, subject to section
1886(d)(3)(B)(ix)(III),'' after ``then''; and
(B) by adding at the end the following: ``For
purposes of applying paragraph (3), there shall be taken
into account incentive payments, and payment adjustments
under subsection (b)(3)(B)(ix) or (n) of section
1886.''.
(2) Section 1851(i)(1) of the Social Security Act (42 U.S.C.
1395w-21(i)(1)) is amended by striking ``and 1886(h)(3)(D)'' and
inserting ``1886(h)(3)(D), and 1853(m)''.
(3) Section 1853 of the Social Security Act (42 U.S.C.
1395w-23), as amended by section 4101(d), is amended--
(A) in subsection (c)--
(i) in paragraph (1)(D)(i), by striking
``1848(o)'' and inserting ``, 1848(o), and
1886(n)''; and
(ii) in paragraph (6)(A), by inserting ``and
subsections (b)(3)(B)(ix) and (n) of section
1886'' after ``section 1848''; and
(B) in subsection (f), by inserting ``and subsection
(m)'' after ``under subsection (l)''.
[[Page 123 STAT. 487]]
SEC. 4103. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.
(a) Premium Hold Harmless.--
(1) In general.--Section 1839(a)(1) of the Social Security
Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end the
following: ``In applying this paragraph there shall not be taken
into account additional payments under section 1848(o) and
section 1853(l)(3) and the Government contribution under section
1844(a)(3).''.
(2) Payment.--Section 1844(a) of such Act (42 U.S.C.
1395w(a)) is amended--
(A) in paragraph (2), by striking the period at the
end and inserting ``; plus''; and
(B) by adding at the end the following new
paragraph:
``(3) a Government contribution equal to the amount of
payment incentives payable under sections 1848(o) and
1853(l)(3).''.
(b) Medicare Improvement Fund.--Section 1898 of the Social Security
Act (42 U.S.C. 1395iii), as added by section 7002(a) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252) and as amended by section
188(a)(2) of the Medicare Improvements for Patients and Providers Act of
2008 (Public Law 110-275; 122 Stat. 2589) and by section 6 of the QI
Program Supplemental Funding Act of 2008, is amended--
(1) in subsection (a)--
(A) by inserting ``medicare'' before ``fee-for-
service''; and
(B) by inserting before the period at the end the
following: ``including, but not limited to, an increase
in the conversion factor under section 1848(d) to
address, in whole or in part, any projected shortfall in
the conversion factor for 2014 relative to the
conversion factor for 2008 and adjustments to payments
for items and services furnished by providers of
services and suppliers under such original medicare fee-
for-service program''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``during fiscal
year 2014,'' and all that follows and inserting the
following: ``during--
``(A) fiscal year 2014, $22,290,000,000; and
``(B) fiscal year 2020 and each subsequent fiscal
year, the Secretary's estimate, as of July 1 of the
fiscal year, of the aggregate reduction in expenditures
under this title during the preceding fiscal year
directly resulting from the reduction in payment amounts
under sections 1848(a)(7), 1853(l)(4), 1853(m)(4), and
1886(b)(3)(B)(ix).''; and
(B) by adding at the end the following new
paragraph:
``(4) No effect on payments in subsequent years.--In the
case that expenditures from the Fund are applied to, or
otherwise affect, a payment rate for an item or service under
this title for a year, the payment rate for such item or service
shall be computed for a subsequent year as if such application
or effect had never occurred.''.
(c) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Secretary of Health and Human Services for
the Center for Medicare & Medicaid Services
[[Page 123 STAT. 488]]
Program Management Account, $100,000,000 for each of fiscal years 2009
through 2015 and $45,000,000 for fiscal year 2016, which shall be
available for purposes of carrying out the provisions of (and amendments
made by) this subtitle. Amounts appropriated under this subsection for a
fiscal year shall be available until expended.
SEC. 4104. STUDIES AND REPORTS ON HEALTH INFORMATION TECHNOLOGY.
(a) Study and Report on Application of EHR Payment Incentives for
Providers Not Receiving Other Incentive Payments.--
(1) Study.--
(A) In general.--The Secretary of Health and Human
Services shall conduct a study to determine the extent
to which and manner in which payment incentives (such as
under title XVIII or XIX of the Social Security Act) and
other funding for purposes of implementing and using
certified EHR technology (as defined in section
1848(o)(4) of the Social Security Act, as added by
section 4101(a)) should be made available to health care
providers who are receiving minimal or no payment
incentives or other funding under this Act, under title
XIII of division A, under title XVIII or XIX of such
Act, or otherwise, for such purposes.
(B) Details of study.--Such study shall include an
examination of--
(i) the adoption rates of certified EHR
technology by such health care providers;
(ii) the clinical utility of such technology
by such health care providers;
(iii) whether the services furnished by such
health care providers are appropriate for or would
benefit from the use of such technology;
(iv) the extent to which such health care
providers work in settings that might otherwise
receive an incentive payment or other funding
under this Act, under title XIII of division A,
under title XVIII or XIX of the Social Security
Act, or otherwise;
(v) the potential costs and the potential
benefits of making payment incentives and other
funding available to such health care providers;
and
(vi) any other issues the Secretary deems to
be appropriate.
(2) Report.--Not later than June 30, 2010, the Secretary
shall submit to Congress a report on the findings and
conclusions of the study conducted under paragraph (1).
(b) Study and Report on Availability of Open Source Health
Information Technology Systems.--
(1) Study.--
(A) In general.--The Secretary of Health and Human
Services shall, in consultation with the Under Secretary
for Health of the Veterans Health Administration, the
Director of the Indian Health Service, the Secretary of
Defense, the Director of the Agency for Healthcare
Research and Quality, the Administrator of the Health
Resources and Services Administration, and the Chairman
[[Page 123 STAT. 489]]
of the Federal Communications Commission, conduct a
study on--
(i) the current availability of open source
health information technology systems to Federal
safety net providers (including small, rural
providers);
(ii) the total cost of ownership of such
systems in comparison to the cost of proprietary
commercial products available;
(iii) the ability of such systems to respond
to the needs of, and be applied to, various
populations (including children and disabled
individuals); and
(iv) the capacity of such systems to
facilitate interoperability.
(B) Considerations.--In conducting the study under
subparagraph (A), the Secretary of Health and Human
Services shall take into account the circumstances of
smaller health care providers, health care providers
located in rural or other medically underserved areas,
and safety net providers that deliver a significant
level of health care to uninsured individuals, Medicaid
beneficiaries, SCHIP beneficiaries, and other vulnerable
individuals.
(2) Report.--Not later than October 1, 2010, the Secretary
of Health and Human Services shall submit to Congress a report
on the findings and the conclusions of the study conducted under
paragraph (1), together with recommendations for such
legislation and administrative action as the Secretary
determines appropriate.
Subtitle B--Medicaid Incentives
SEC. 4201. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS;
IMPLEMENTATION FUNDING.
(a) In General.--Section 1903 of the Social Security Act (42 U.S.C.
1396b) is amended--
(1) in subsection (a)(3)--
(A) by striking ``and'' at the end of subparagraph
(D);
(B) by striking ``plus'' at the end of subparagraph
(E) and inserting ``and''; and
(C) by adding at the end the following new
subparagraph:
``(F)(i) 100 percent of so much of the sums expended
during such quarter as are attributable to payments to
Medicaid providers described in subsection (t)(1) to
encourage the adoption and use of certified EHR
technology; and
``(ii) 90 percent of so much of the sums expended
during such quarter as are attributable to payments for
reasonable administrative expenses related to the
administration of payments described in clause (i) if
the State meets the condition described in subsection
(t)(9); plus''; and
(2) by inserting after subsection (s) the following new
subsection:
``(t)(1) For purposes of subsection (a)(3)(F), the payments
described in this paragraph to encourage the adoption and use of
certified EHR technology are payments made by the State in accordance
with this subsection --
[[Page 123 STAT. 490]]
``(A) to Medicaid providers described in paragraph (2)(A)
not in excess of 85 percent of net average allowable costs (as
defined in paragraph (3)(E)) for certified EHR technology (and
support services including maintenance and training that is for,
or is necessary for the adoption and operation of, such
technology) with respect to such providers; and
``(B) to Medicaid providers described in paragraph (2)(B)
not in excess of the maximum amount permitted under paragraph
(5) for the provider involved.
``(2) <<NOTE: Definition.>> In this subsection and subsection
(a)(3)(F), the term `Medicaid provider' means--
``(A) an eligible professional (as defined in paragraph
(3)(B))--
``(i) who is not hospital-based and has at least 30
percent of the professional's patient volume (as
estimated in accordance with a methodology established
by the Secretary) attributable to individuals who are
receiving medical assistance under this title;
``(ii) who is not described in clause (i), who is a
pediatrician, who is not hospital-based, and who has at
least 20 percent of the professional's patient volume
(as estimated in accordance with a methodology
established by the Secretary) attributable to
individuals who are receiving medical assistance under
this title; and
``(iii) who practices predominantly in a Federally
qualified health center or rural health clinic and has
at least 30 percent of the professional's patient volume
(as estimated in accordance with a methodology
established by the Secretary) attributable to needy
individuals (as defined in paragraph (3)(F)); and
``(B)(i) a children's hospital, or
``(ii) an acute-care hospital that is not described in
clause (i) and that has at least 10 percent of the hospital's
patient volume (as estimated in accordance with a methodology
established by the Secretary) attributable to individuals who
are receiving medical assistance under this title.
An eligible professional shall not qualify as a Medicaid provider under
this subsection unless any right to payment under sections 1848(o) and
1853(l) with respect to the eligible professional has been waived in a
manner specified by the Secretary. For purposes of calculating patient
volume under subparagraph (A)(iii), insofar as it is related to
uncompensated care, the Secretary may require the adjustment of such
uncompensated care data so that it would be an appropriate proxy for
charity care, including a downward adjustment to eliminate bad debt data
from uncompensated care. In applying subparagraphs
(A) <<NOTE: Applicability.>> and (B)(ii), the methodology established by
the Secretary for patient volume shall include individuals enrolled in a
Medicaid managed care plan (under section 1903(m) or section 1932).
``(3) <<NOTE: Definitions.>> In this subsection and subsection
(a)(3)(F):
``(A) The term `certified EHR technology' means a qualified
electronic health record (as defined in 3000(13) of the Public
Health Service Act) that is certified pursuant to section
3001(c)(5) of such Act as meeting standards adopted under
section 3004 of such Act that are applicable to the type of
record involved (as determined by the Secretary, such as an
[[Page 123 STAT. 491]]
ambulatory electronic health record for office-based physicians
or an inpatient hospital electronic health record for
hospitals).
``(B) The term `eligible professional' means a--
``(i) physician;
``(ii) dentist;
``(iii) certified nurse mid-wife;
``(iv) nurse practitioner; and
``(v) physician assistant insofar as the assistant
is practicing in a rural health clinic that is led by a
physician assistant or is practicing in a Federally
qualified health center that is so led.
``(C) The term `average allowable costs' means, with respect
to certified EHR technology of Medicaid providers described in
paragraph (2)(A) for--
``(i) the first year of payment with respect to such
a provider, the average costs for the purchase and
initial implementation or upgrade of such technology
(and support services including training that is for, or
is necessary for the adoption and initial operation of,
such technology) for such providers, as determined by
the Secretary based upon studies conducted under
paragraph (4)(C); and
``(ii) a subsequent year of payment with respect to
such a provider, the average costs not described in
clause (i) relating to the operation, maintenance, and
use of such technology for such providers, as determined
by the Secretary based upon studies conducted under
paragraph (4)(C).
``(D) The term `hospital-based' means, with respect to an
eligible professional, a professional (such as a pathologist,
anesthesiologist, or emergency physician) who furnishes
substantially all of the individual's professional services in a
hospital setting (whether inpatient or outpatient) and through
the use of the facilities and equipment, including qualified
electronic health records, of the hospital. The determination of
whether an eligible professional is a hospital-based eligible
professional shall be made on the basis of the site of service
(as defined by the Secretary) and without regard to any
employment or billing arrangement between the eligible
professional and any other provider.
``(E) The term `net average allowable costs' means, with
respect to a Medicaid provider described in paragraph (2)(A),
average allowable costs reduced by any payment that is made to
such Medicaid provider from any other source (other than under
this subsection or by a State or local government) that is
directly attributable to payment for certified EHR technology or
support services described in subparagraph (C).
``(F) The term `needy individual' means, with respect to a
Medicaid provider, an individual--
``(i) who is receiving assistance under this title;
``(ii) who is receiving assistance under title XXI;
``(iii) who is furnished uncompensated care by the
provider; or
``(iv) for whom charges are reduced by the provider
on a sliding scale basis based on an individual's
ability to pay.
``(4)(A) With respect to a Medicaid provider described in paragraph
(2)(A), subject to subparagraph (B), in no case shall--
[[Page 123 STAT. 492]]
``(i) the net average allowable costs under this
subsection for the first year of payment (which may not
be later than 2016), which is intended to cover the
costs described in paragraph (3)(C)(i), exceed $25,000
(or such lesser amount as the Secretary determines based
on studies conducted under subparagraph (C));
``(ii) the net average allowable costs under this
subsection for a subsequent year of payment, which is
intended to cover costs described in paragraph
(3)(C)(ii), exceed $10,000; and
``(iii) payments be made for costs described in
clause (ii) after 2021 or over a period of longer than 5
years.
``(B) In the case of Medicaid provider described in paragraph
(2)(A)(ii), the dollar amounts specified in subparagraph (A) shall be
\2/3\ of the dollar amounts otherwise specified.
``(C) <<NOTE: Study.>> For the purposes of determining average
allowable costs under this subsection, the Secretary shall study the
average costs to Medicaid providers described in paragraph (2)(A) of
purchase and initial implementation and upgrade of certified EHR
technology described in paragraph (3)(C)(i) and the average costs to
such providers of operations, maintenance, and use of such technology
described in paragraph (3)(C)(ii). In determining such costs for such
providers, the Secretary may utilize studies of such amounts submitted
by States.
``(5)(A) In no case shall the payments described in paragraph (1)(B)
with respect to a Medicaid provider described in paragraph (2)(B)
exceed--
``(i) in the aggregate the product of--
``(I) the overall hospital EHR amount for the
provider computed under subparagraph (B); and
``(II) the Medicaid share for such provider
computed under subparagraph (C);
``(ii) in any year 50 percent of the product described in
clause (i); and
``(iii) in any 2-year period 90 percent of such product.
``(B) For purposes of this paragraph, the overall hospital EHR
amount, with respect to a Medicaid provider, is the sum of the
applicable amounts specified in section 1886(n)(2)(A) for such provider
for the first 4 payment years (as estimated by the Secretary) determined
as if the Medicare share specified in clause (ii) of such section were
1. The Secretary shall establish, in consultation with the State, the
overall hospital EHR amount for each such Medicaid provider eligible for
payments under paragraph (1)(B). For purposes of this subparagraph in
computing the amounts under section 1886(n)(2)(C) for payment years
after the first payment year, the Secretary shall assume that in
subsequent payment years discharges increase at the average annual rate
of growth of the most recent 3 years for which discharge data are
available per year.
``(C) The Medicaid share computed under this subparagraph, for a
Medicaid provider for a period specified by the Secretary, shall be
calculated in the same manner as the Medicare share under section
1886(n)(2)(D) for such a hospital and period, except that there shall be
substituted for the numerator under clause (i) of such section the
amount that is equal to the number of inpatient-bed-days (as established
by the Secretary) which are attributable to individuals who are
receiving medical assistance
[[Page 123 STAT. 493]]
under this title and who are not described in section 1886(n)(2)(D)(i).
In computing inpatient-bed-days under the previous sentence, the
Secretary shall take into account inpatient-bed-days attributable to
inpatient-bed-days that are paid for individuals enrolled in a Medicaid
managed care plan (under section 1903(m) or section 1932).
``(D) In no case may the payments described in paragraph (1)(B) with
respect to a Medicaid provider described in paragraph (2)(B) be paid--
``(i) for any year beginning after 2016 unless the provider
has been provided payment under paragraph (1)(B) for the
previous year; and
``(ii) over a period of more than 6 years of payment.
``(6) Payments described in paragraph (1) are not in accordance with
this subsection unless the following requirements are met:
``(A)(i) The State provides assurances satisfactory to the
Secretary that amounts received under subsection (a)(3)(F) with
respect to payments to a Medicaid provider are paid, subject to
clause (ii), directly to such provider (or to an employer or
facility to which such provider has assigned payments) without
any deduction or rebate.
``(ii) Amounts described in clause (i) may also be paid to
an entity promoting the adoption of certified EHR technology, as
designated by the State, if participation in such a payment
arrangement is voluntary for the eligible professional involved
and if such entity does not retain more than 5 percent of such
payments for costs not related to certified EHR technology (and
support services including maintenance and training) that is
for, or is necessary for the operation of, such technology.
``(B) A Medicaid provider described in paragraph (2)(A) is
responsible for payment of the remaining 15 percent of the net
average allowable cost.
``(C)(i) Subject to clause (ii), with respect to payments to
a Medicaid provider--
``(I) for the first year of payment to the Medicaid
provider under this subsection, the Medicaid provider
demonstrates that it is engaged in efforts to adopt,
implement, or upgrade certified EHR technology; and
``(II) for a year of payment, other than the first
year of payment to the Medicaid provider under this
subsection, the Medicaid provider demonstrates
meaningful use of certified EHR technology through a
means that is approved by the State and acceptable to
the Secretary, and that may be based upon the
methodologies applied under section 1848(o) or 1886(n).
``(ii) In the case of a Medicaid provider who has completed
adopting, implementing, or upgrading such technology prior to
the first year of payment to the Medicaid provider under this
subsection, clause (i)(I) shall not apply and clause (i)(II)
shall apply to each year of payment to the Medicaid provider
under this subsection, including the first year of payment.
``(D) To the extent specified by the Secretary, the
certified EHR technology is compatible with State or Federal
administrative management systems.
For purposes of subparagraph (B), a Medicaid provider described in
paragraph (2)(A) may accept payments for the costs described
[[Page 123 STAT. 494]]
in such subparagraph from a State or local government. For purposes of
subparagraph (C), in establishing the means described in such
subparagraph, which may include clinical quality reporting to the State,
the State shall ensure that populations with unique needs, such as
children, are appropriately addressed.
``(7) With respect to Medicaid providers described in paragraph
(2)(A), the Secretary shall ensure coordination of payment with respect
to such providers under sections 1848(o) and 1853(l) and under this
subsection to assure no duplication of funding. Such coordination shall
include, to the extent practicable, a data matching process between
State Medicaid agencies and the Centers for Medicare & Medicaid Services
using national provider identifiers. For such purposes, the Secretary
may require the submission of such data relating to payments to such
Medicaid providers as the Secretary may specify.
``(8) In carrying out paragraph (6)(C), the State and Secretary
shall seek, to the maximum extent practicable, to avoid duplicative
requirements from Federal and State governments to demonstrate
meaningful use of certified EHR technology under this title and title
XVIII. In doing so, the Secretary may deem satisfaction of requirements
for such meaningful use for a payment year under title XVIII to be
sufficient to qualify as meaningful use under this subsection. The
Secretary may also specify the reporting periods under this subsection
in order to carry out this paragraph.
``(9) In order to be provided Federal financial participation under
subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction
of the Secretary, that the State--
``(A) is using the funds provided for the purposes of
administering payments under this subsection, including tracking
of meaningful use by Medicaid providers;
``(B) is conducting adequate oversight of the program under
this subsection, including routine tracking of meaningful use
attestations and reporting mechanisms; and
``(C) is pursuing initiatives to encourage the adoption of
certified EHR technology to promote health care quality and the
exchange of health care information under this title, subject to
applicable laws and regulations governing such exchange.
``(10) <<NOTE: Reports.>> The Secretary shall periodically submit
reports to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate on status,
progress, and oversight of payments described in paragraph (1),
including steps taken to carry out paragraph (7). Such reports shall
also describe the extent of adoption of certified EHR technology among
Medicaid providers resulting from the provisions of this subsection and
any improvements in health outcomes, clinical quality, or efficiency
resulting from such adoption.''.
(b) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Secretary of Health and Human Services for
the Centers for Medicare & Medicaid Services Program Management Account,
$40,000,000 for each of fiscal years 2009 through 2015 and $20,000,000
for fiscal year 2016, which shall be available for purposes of carrying
out the provisions of (and the amendments made by) this section. Amounts
appropriated under this subsection for a fiscal year shall be available
until expended.
[[Page 123 STAT. 495]]
Subtitle C--Miscellaneous Medicare Provisions
SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS.
(a) Delay in Phase Out of Medicare Hospice Budget Neutrality
Adjustment Factor During Fiscal Year 2009.--Notwithstanding any other
provision of law, including the final rule published on August 8, 2008,
73 Federal Register 46464 et seq., relating to Medicare Program; Hospice
Wage Index for Fiscal Year 2009, the Secretary of Health and Human
Services shall not phase out or eliminate the budget neutrality
adjustment factor in the Medicare hospice wage index before October 1,
2009, and the Secretary shall recompute and apply the final Medicare
hospice wage index for fiscal year 2009 as if there had been no
reduction in the budget neutrality adjustment factor.
(b) Non-Application of Phased-Out Indirect Medical Education (IME)
Adjustment Factor for Fiscal Year 2009.--
(1) In general.-- <<NOTE: Applicability.>> Section 412.322
of title 42, Code of Federal Regulations, shall be applied
without regard to paragraph (c) of such section, and the
Secretary of Health and Human Services shall recompute payments
for discharges occurring on or after October 1, 2008, as if such
paragraph had never been in effect.
(2) No effect on subsequent years.--Nothing in paragraph (1)
shall be construed as having any effect on the application of
paragraph (d) of section 412.322 of title 42, Code of Federal
Regulations.
(c) Funding for Implementation.--In addition to funds otherwise
available, for purposes of implementing the provisions of subsections
(a) and (b), including costs incurred in reprocessing claims in carrying
out such provisions, the Secretary of Health and Human Services shall
provide for the transfer from the Federal Hospital Insurance Trust Fund
established under section 1817 of the Social Security Act (42 U.S.C.
1395i) to the Centers for Medicare & Medicaid Services Program
Management Account of $2,000,000 for fiscal year 2009.
SEC. 4302. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.
(a) Payment.--Subsection (c) of section 114 of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173) <<NOTE: 42 USC 1395ww note.>> is amended--
(1) in paragraph (1)--
(A) by amending the heading to read as follows:
``Delay in application of 25 percent patient threshold
payment adjustment'';
(B) by striking ``the date of the enactment of this
Act'' and inserting ``July 1, 2007,''; and
(C) in subparagraph (A), by inserting ``or to a
long-term care hospital, or satellite facility, that as
of December 29, 2007, was co-located with an entity that
is a provider-based, off-campus location of a subsection
(d) hospital which did not provide services payable
under section 1886(d) of the Social Security Act at the
off-campus location'' after ``freestanding long-term
care hospitals''; and
(2) in paragraph (2)--
[[Page 123 STAT. 496]]
(A) in subparagraph (B)(ii), by inserting ``or that
is described in section 412.22(h)(3)(i) of such title''
before the period; and
(B) in subparagraph (C), by striking ``the date of
the enactment of this Act'' and inserting ``October 1,
2007 (or July 1, 2007, in the case of a satellite
facility described in section 412.22(h)(3)(i) of title
42, Code of Federal Regulations)''.
(b) Moratorium.--Subsection (d)(3)(A) of such section is amended by
striking ``if the hospital or facility'' and inserting ``if the hospital
or facility obtained a certificate of need for an increase in beds that
is in a State for which such certificate of need is required and that
was issued on or after April 1, 2005, and before December 29, 2007, or
if the hospital or facility''.
(c) <<NOTE: 42 USC 1395ww note.>> Effective Date.--The amendments
made by this section shall be effective and apply as if included in the
enactment of the Medicare, Medicaid, and SCHIP Extension Act of 2007
(Public Law 110-173).
TITLE V--STATE FISCAL RELIEF
SEC. 5000. PURPOSES; TABLE OF CONTENTS.
(a) <<NOTE: 42 USC 1396a note.>> Purposes.--The purposes of this
title are as follows:
(1) To provide fiscal relief to States in a period of
economic downturn.
(2) To protect and maintain State Medicaid programs during a
period of economic downturn, including by helping to avert cuts
to provider payment rates and benefits or services, and to
prevent constrictions of income eligibility requirements for
such programs, but not to promote increases in such
requirements.
(b) Table of Contents.--The table of contents for this title is as
follows:
TITLE V--STATE FISCAL RELIEF
Sec. 5000. Purposes; table of contents.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Temporary increase in DSH allotments during recession.
Sec. 5003. Extension of moratoria on certain Medicaid final regulations.
Sec. 5004. Extension of transitional medical assistance (TMA).
Sec. 5005. Extension of the qualifying individual (QI) program.
Sec. 5006. Protections for Indians under Medicaid and CHIP.
Sec. 5007. Funding for oversight and implementation.
Sec. 5008. GAO study and report regarding State needs during periods of
national economic downturn.
SEC. 5001. <<NOTE: 42 USC 1396d note.>> TEMPORARY INCREASE OF MEDICAID
FMAP.
(a) Permitting Maintenance of Fmap.--Subject to subsections (e),
(f), and (g), if the FMAP determined without regard to this section for
a State for--
(1) fiscal year 2009 is less than the FMAP as so determined
for fiscal year 2008, the FMAP for the State for fiscal year
2008 shall be substituted for the State's FMAP for fiscal year
2009, before the application of this section;
(2) fiscal year 2010 is less than the FMAP as so determined
for fiscal year 2008 or fiscal year 2009 (after the application
of paragraph (1)), the greater of such FMAP for the State for
fiscal year 2008 or fiscal year 2009 shall be substituted
[[Page 123 STAT. 497]]
for the State's FMAP for fiscal year 2010, before the
application of this section; and
(3) fiscal year 2011 is less than the FMAP as so determined
for fiscal year 2008, fiscal year 2009 (after the application of
paragraph (1)), or fiscal year 2010 (after the application of
paragraph (2)), the greatest of such FMAP for the State for
fiscal year 2008, fiscal year 2009, or fiscal year 2010 shall be
substituted for the State's FMAP for fiscal year 2011, before
the application of this section, but only for the first calendar
quarter in fiscal year 2011.
(b) General 6.2 Percentage Point Increase.--
(1) In general.--Subject to subsections (e), (f), and (g)
and paragraph (2), for each State for calendar quarters during
the recession adjustment period (as defined in subsection
(h)(3)), the FMAP (after the application of subsection (a))
shall be increased (without regard to any limitation otherwise
specified in section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b))) by 6.2 percentage points.
(2) <<NOTE: Applicability.>> Special election for
territories.--In the case of a State that is not one of the 50
States or the District of Columbia, paragraph (1) shall only
apply if the State makes a one-time election, in a form and
manner specified by the Secretary and for the entire recession
adjustment period, to apply the increase in FMAP under paragraph
(1) and a 15 percent increase under subsection (d) instead of
applying a 30 percent increase under subsection (d).
(c) Additional Relief Based on Increase in Unemployment.--
(1) In general.--Subject to subsections (e), (f), and (g),
if a State is a qualifying State under paragraph (2) for a
calendar quarter occurring during the recession adjustment
period, the FMAP for the State shall be further increased by the
number of percentage points equal to the product of--
(A) the State percentage applicable for the State
under section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)) after the application of subsection (a)
and after the application of \1/2\ of the increase under
subsection (b); and
(B) the applicable percent determined in paragraph
(3) for the calendar quarter (or, if greater, for a
previous such calendar quarter).
(2) Qualifying criteria.--
(A) In general.--For purposes of paragraph (1), a
State qualifies for additional relief under this
subsection for a calendar quarter occurring during the
recession adjustment period if the State is 1 of the 50
States or the District of Columbia and the State
satisfies any of the following criteria for the quarter:
(i) The State unemployment increase percentage
(as defined in paragraph (4)) for the quarter is
at least 1.5 percentage points but less than 2.5
percentage points.
(ii) The State unemployment increase
percentage for the quarter is at least 2.5
percentage points but less than 3.5 percentage
points.
(iii) The State unemployment increase
percentage for the quarter is at least 3.5
percentage points.
[[Page 123 STAT. 498]]
(B) Maintenance of status.--If a State qualifies for
additional relief under this subsection for a calendar
quarter, it shall be deemed to have qualified for such
relief for each subsequent calendar quarter ending
before July 1, 2010.
(3) Applicable percent.--
(A) In general.--For purposes of paragraph (1),
subject to subparagraph (B), the applicable percent is--
(i) 5.5 percent, if the State satisfies the
criteria described in paragraph (2)(A)(i) for the
calendar quarter;
(ii) 8.5 percent if the State satisfies the
criteria described in paragraph (2)(A)(ii) for the
calendar quarter; and
(iii) 11.5 percent if the State satisfies the
criteria described in paragraph (2)(A)(iii) for
the calendar quarter.
(B) Maintenance of higher applicable percent.--
(i) Hold harmless period.--If the percent
applied to a State under subparagraph (A) for any
calendar quarter in the recession adjustment
period beginning on or after January 1, 2009, and
ending before July 1, 2010, (determined without
regard to this subparagraph) is less than the
percent applied for the preceding quarter (as so
determined), the higher applicable percent shall
continue in effect for each subsequent calendar
quarter ending before July 1, 2010.
(ii) <<NOTE: Deadline.>> Notice of lower
applicable percent.--The Secretary shall notify a
State at least 60 days prior to applying any lower
applicable percent to the State under this
paragraph.
(4) Computation of state unemployment increase percentage.--
(A) In general.--In this subsection, the ``State
unemployment increase percentage'' for a State for a
calendar quarter is equal to the number of percentage
points (if any) by which--
(i) the average monthly unemployment rate for
the State for months in the most recent previous
3-consecutive-month period for which data are
available, subject to subparagraph (C); exceeds
(ii) the lowest average monthly unemployment
rate for the State for any 3-consecutive-month
period preceding the period described in clause
(i) and beginning on or after January 1, 2006.
(B) Average monthly unemployment rate defined.--In
this paragraph, the term ``average monthly unemployment
rate'' means the average of the monthly number
unemployed, divided by the average of the monthly
civilian labor force, seasonally adjusted, as determined
based on the most recent monthly publications of the
Bureau of Labor Statistics of the Department of Labor.
(C) Special rule.--With respect to--
(i) the first 2 calendar quarters of the
recession adjustment period, the most recent
previous 3-consecutive-month period described in
subparagraph (A)(i)
[[Page 123 STAT. 499]]
shall be the 3-consecutive-month period beginning
with October 2008; and
(ii) the last 2 calendar quarters of the
recession adjustment period, the most recent
previous 3-consecutive-month period described in
such subparagraph shall be the 3-consecutive-month
period beginning with December 2009, or, if it
results in a higher applicable percent under
paragraph (3), the 3-consecutive-month period
beginning with January 2010.
(d) Increase in Cap on Medicaid Payments to Territories.--Subject to
subsections (f) and (g), with respect to entire fiscal years occurring
during the recession adjustment period and with respect to fiscal years
only a portion of which occurs during such period (and in proportion to
the portion of the fiscal year that occurs during such period), the
amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam,
the Northern Mariana Islands, and American Samoa under subsections (f)
and (g) of section 1108 of the Social Security Act (42 6 U.S.C. 1308)
shall each be increased by 30 percent (or, in the case of an election
under subsection (b)(2), 15 percent). <<NOTE: Applicability.>> In the
case of such an election by a territory, subsection (a)(1) of such
section shall be applied without regard to any increase in payment made
to the territory under part E of title IV of such Act that is
attributable to the increase in FMAP effected under subsection (b) for
the territory.
(e) Scope of Application.--The increases in the FMAP for a State
under this section shall apply for purposes of title XIX of the Social
Security Act and shall not apply with respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act (42 U.S.C. 1396r-4);
(2) payments under title IV of such Act (42 U.S.C. 601 et
seq.) (except that the increases under subsections (a) and (b)
shall apply to payments under part E of title IV of such Act (42
U.S.C. 670 et seq.) and, for purposes of the application of this
section to the District of Columbia, payments under such part
shall be deemed to be made on the basis of the FMAP applied with
respect to such District for purposes of title XIX and as
increased under subsection (b));
(3) payments under title XXI of such Act (42 U.S.C. 1397aa
et seq.);
(4) any payments under title XIX of such Act that are based
on the enhanced FMAP described in section 2105(b) of such Act
(42 U.S.C. 1397ee(b)); or
(5) any payments under title XIX of such Act that are
attributable to expenditures for medical assistance provided to
individuals made eligible under a State plan under title XIX of
the Social Security Act (including under any waiver under such
title or under section 1115 of such Act (42 U.S.C. 1315))
because of income standards (expressed as a percentage of the
poverty line) for eligibility for medical assistance that are
higher than the income standards (as so expressed) for such
eligibility as in effect on July 1, 2008, (including as such
standards were proposed to be in effect under a State law
enacted but not effective as of such date or a State plan
amendment or waiver request under title XIX of such Act that was
pending approval on such date).
(f) State Ineligibility; Limitation; Special Rules.--
(1) Maintenance of eligibility requirements.--
[[Page 123 STAT. 500]]
(A) In general.--Subject to subparagraphs (B) and
(C), a State is not eligible for an increase in its FMAP
under subsection (a), (b), or (c), or an increase in a
cap amount under subsection (d), if eligibility
standards, methodologies, or procedures under its State
plan under title XIX of the Social Security Act
(including any waiver under such title or under section
1115 of such Act (42 U.S.C. 1315)) are more restrictive
than the eligibility standards, methodologies, or
procedures, respectively, under such plan (or waiver) as
in effect on July 1, 2008.
(B) State reinstatement of eligibility permitted.--
Subject to subparagraph (C), a State that has restricted
eligibility standards, methodologies, or procedures
under its State plan under title XIX of the Social
Security Act (including any waiver under such title or
under section 1115 of such Act (42 U.S.C. 1315)) after
July 1, 2008, is no longer ineligible under subparagraph
(A) beginning with the first calendar quarter in which
the State has reinstated eligibility standards,
methodologies, or procedures that are no more
restrictive than the eligibility standards,
methodologies, or procedures, respectively, under such
plan (or waiver) as in effect on July 1, 2008.
(C) Special rules.--A State shall not be ineligible
under subparagraph (A)--
(i) for the calendar quarters before July 1,
2009, on the basis of a restriction that was
applied after July 1, 2008, and before the date of
the enactment of this Act, if the State prior to
July 1, 2009, has reinstated eligibility
standards, methodologies, or procedures that are
no more restrictive than the eligibility
standards, methodologies, or procedures,
respectively, under such plan (or waiver) as in
effect on July 1, 2008; or
(ii) on the basis of a restriction that was
directed to be made under State law as in effect
on July 1, 2008, and would have been in effect as
of such date, but for a delay in the effective
date of a waiver under section 1115 of such Act
with respect to such restriction.
(2) Compliance with prompt pay requirements.--
(A) Application to practitioners.--
(i) In general.--Subject to the succeeding
provisions of this subparagraph, no State shall be
eligible for an increased FMAP rate as provided
under this section for any claim received by a
State from a practitioner subject to the terms of
section 1902(a)(37)(A) of the Social Security Act
(42 U.S.C. 1396a(a)(37)(A)) for such days during
any period in which that State has failed to pay
claims in accordance with such section as applied
under title XIX of such Act.
(ii) Reporting requirement.--Each State shall
report to the Secretary, on a quarterly basis, its
compliance with the requirements of clause (i) as
such requirements pertain to claims made for
covered services during each month of the
preceding quarter.
(iii) Waiver authority.--The Secretary may
waive the application of clause (i) to a State, or
the
[[Page 123 STAT. 501]]
reporting requirement imposed under clause (ii),
during any period in which there are exigent
circumstances, including natural disasters, that
prevent the timely processing of claims or the
submission of such a report.
(iv) Application to claims.--Clauses (i) and
(ii) shall only apply to claims made for covered
services after the date of enactment of this Act.
(B) Application to nursing facilities and
hospitals.--
(i) In general.--Subject to clause (ii), the
provisions of subparagraph (A) shall apply with
respect to a nursing facility or hospital, insofar
as it is paid under title XIX of the Social
Security Act on the basis of submission of claims,
in the same or similar manner (but within the same
timeframe) as such provisions apply to
practitioners described in such subparagraph.
(ii) Grace period.--Notwithstanding clause
(i), no period of ineligibility shall be imposed
against a State prior to June 1, 2009, on the
basis of the State failing to pay a claim in
accordance with such clause.
(3) State's application toward rainy day fund.--A State is
not eligible for an increase in its FMAP under subsection (b) or
(c), or an increase in a cap amount under subsection (d), if any
amounts attributable (directly or indirectly) to such increase
are deposited or credited into any reserve or rainy day fund of
the State.
(4) No waiver authority.--Except as provided in paragraph
(2)(A)(iii), the Secretary may not waive the application of this
subsection or subsection (g) under section 1115 of the Social
Security Act or otherwise.
(5) Limitation of fmap to 100 percent.--In no case shall an
increase in FMAP under this section result in an FMAP that
exceeds 100 percent.
(6) Treatment of certain expenditures.-- <<NOTE: Time
period.>> With respect to expenditures described in section
2105(a)(1)(B) of the Social Security Act (42 U.S.C.
1397ee(a)(1)(B)), as in effect before April 1, 2009, that are
made during the period beginning on October 1, 2008, and ending
on March 31, 2009, any additional Federal funds that are paid to
a State as a result of this section that are attributable to
such expenditures shall not be counted against any allotment
under section 2104 of such Act (42 U.S.C. 1397dd).
(g) Requirements.--
(1) State reports.--Each State that is paid additional
Federal funds as a result of this section shall, not later than
September 30, 2011, submit a report to the Secretary, in such
form and such manner as the Secretary shall determine, regarding
how the additional Federal funds were expended.
(2) Additional requirement for certain states.--In the case
of a State that requires political subdivisions within the State
to contribute toward the non-Federal share of expenditures under
the State Medicaid plan required under section 1902(a)(2) of the
Social Security Act (42 U.S.C. 1396a(a)(2)), the State is not
eligible for an increase in its FMAP under subsection (b) or
(c), or an increase in a cap amount under subsection (d), if it
requires that such political subdivisions
[[Page 123 STAT. 502]]
pay for quarters during the recession adjustment period a
greater percentage of the non-Federal share of such
expenditures, or a greater percentage of the non-Federal share
of payments under section 1923, than the respective percentage
that would have been required by the State under such plan on
September 30, 2008, prior to application of this section.
(h) Definitions.--In this section, except as otherwise provided:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)), as determined without
regard to this section except as otherwise specified.
(2) Poverty line.--The term ``poverty line'' has the meaning
given such term in section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2)), including any revision
required by such section.
(3) Recession adjustment period.--The term ``recession
adjustment period'' means the period beginning on October 1,
2008, and ending on December 31, 2010.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(5) State.--The term ``State'' has the meaning given such
term in section 1101(a)(1) of the Social Security Act (42 U.S.C.
1301(a)(1)) for purposes of title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.).
(i) Sunset.--This section shall not apply to items and services
furnished after the end of the recession adjustment period.
(j) Limitation on FMAP Change.--The increase in FMAP effected under
section 614 of the Children's Health Insurance Program Reauthorization
Act of 2009 shall not apply in the computation of the enhanced FMAP
under title XXI or XIX of the Social Security Act for any period
(notwithstanding subsection (i)).
SEC. 5002. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.
Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
4(f)(3)) is amended--
(1) in subparagraph (A), by striking ``paragraph (6)'' and
inserting ``paragraph (6) and subparagraph (E)''; and
(2) by adding at the end the following new subparagraph:
``(E) Temporary increase in allotments during
recession.--
``(i) In general.--Subject to clause (ii), the
DSH allotment for any State--
``(I) for fiscal year 2009 is equal
to 102.5 percent of the DSH allotment
that would be determined under this
paragraph for the State for fiscal year
2009 without application of this
subparagraph, notwithstanding
subparagraphs (B) and (C);
``(II) for fiscal year 2010 is equal
to 102.5 percent of the DSH allotment
for the State for fiscal year 2009, as
determined under subclause (I); and
``(III) for each succeeding fiscal
year is equal to the DSH allotment for
the State under this paragraph
determined without applying subclauses
(I) and (II).
[[Page 123 STAT. 503]]
``(ii) Application.--Clause (i) shall not
apply to a State for a year in the case that the
DSH allotment for such State for such year under
this paragraph determined without applying clause
(i) would grow higher than the DSH allotment
specified under clause (i) for the State for such
year.''.
SEC. 5003. EXTENSION OF MORATORIA ON CERTAIN MEDICAID FINAL REGULATIONS.
(a) Final Regulations Relating to Optional Case Management Services
and Allowable Provider Taxes.--Section 7001(a)(3)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252) is amended by striking
``April 1, 2009'' and inserting ``July 1, 2009''.
(b) Final Regulation Relating to School-Based Administration and
School-Based Transportation.--Section 206 of the Medicare, Medicaid, and
SCHIP Extension Act of 2007 (Public Law 110-173), as amended by section
7001(a)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110-
252), is amended by inserting ``(July 1, 2009, in the case of the final
regulation relating to school-based administration and school-based
transportation)'' after ``April 1, 2009,''.
(c) Final Regulation Relating to Outpatient Hospital Facility
Services.-- <<NOTE: Time period.>> Notwithstanding any other provision
of law, with respect to expenditures for services furnished during the
period beginning on December 8, 2008, and ending on June 30, 2009, the
Secretary of Health and Human Services shall not take any action
(through promulgation of regulation, issuance of regulatory guidance,
use of Federal payment audit procedures, or other administrative action,
policy, or practice, including a Medical Assistance Manual transmittal
or letter to State Medicaid directors) to implement the final regulation
relating to clarification of the definition of outpatient hospital
facility services under the Medicaid program published on November 7,
2008 (73 Federal Register 66187).
(d) Sense of Congress.--It is the sense of Congress that the
Secretary of Health and Human Services should not promulgate as final
regulations any of the following proposed Medicaid regulations:
(1) Cost limits for certain providers.--The proposed
regulation published on January 18, 2007, (72 Federal Register
2236) (and the purported final regulation published on May 29,
2007 (72 Federal Register 29748) and determined by the United
States District Court for the District of Columbia to have been
``improperly promulgated'', Alameda County Medical Center, et
al., v. Leavitt, et al., Civil Action No. 08-0422, Mem. at 4
(D.D.C. May 23, 2008)).
(2) Payments for graduate medical education.--The proposed
regulation published on May 23, 2007 (72 Federal Register
28930).
(3) Rehabilitative services.--The proposed regulation
published on August 13, 2007 (72 Federal Register 45201).
SEC. 5004. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).
(a) 18-Month Extension.--
(1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the
Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are
[[Page 123 STAT. 504]]
each amended by striking ``September 30, 2003'' and inserting
``December 31, 2010''.
(2) <<NOTE: 42 USC 1396a note.>> Effective date.--The
amendments made by this subsection shall take effect on July 1,
2009.
(b) State Option of Initial 12-Month Eligibility.--Section 1925 of
the Social Security Act (42 U.S.C. 1396r-6) is amended--
(1) in subsection (a)(1), by inserting ``but subject to
paragraph (5)'' after ``Notwithstanding any other provision of
this title'';
(2) by adding at the end of subsection (a) the following:
``(5) Option of 12-month initial eligibility period.--A
State may elect to treat any reference in this subsection to a
6-month period (or 6 months) as a reference to a 12-month period
(or 12 months). In the case of such an election, subsection (b)
shall not apply.''; and
(3) in subsection (b)(1), by inserting ``but subject to
subsection (a)(5)'' after ``Notwithstanding any other provision
of this title''.
(c) Removal of Requirement for Previous Receipt of Medical
Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-6(a)(1)),
as amended by subsection (b)(1), is further amended--
(1) by inserting ``subparagraph (B) and'' before ``paragraph
(5)'';
(2) by redesignating the matter after ``Requirement.--'' as
a subparagraph (A) with the heading ``In general.--'' and with
the same indentation as subparagraph (B) (as added by paragraph
(3)); and
(3) by adding at the end the following:
``(B) State option to waive requirement for 3 months
before receipt of medical assistance.--A State may, at
its option, elect also to apply subparagraph (A) in the
case of a family that was receiving such aid for fewer
than three months or that had applied for and was
eligible for such aid for fewer than 3 months during the
6 immediately preceding months described in such
subparagraph.''.
(d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 of such Act (42 U.S.C. 1396r-6), as amended by this
section, is further amended by adding at the end the following new
subsection:
``(g) Collection and Reporting of Participation Information.--
``(1) Collection of information from states.--Each State
shall collect and submit to the Secretary (and make publicly
available), in a format specified by the Secretary, information
on average monthly enrollment and average monthly participation
rates for adults and children under this section and of the
number and percentage of children who become ineligible for
medical assistance under this section whose medical assistance
is continued under another eligibility category or who are
enrolled under the State's child health plan under title XXI.
Such information shall be submitted at the same time and
frequency in which other enrollment information under this title
is submitted to the Secretary.
``(2) Annual reports to congress.--Using the information
submitted under paragraph (1), the Secretary shall submit
[[Page 123 STAT. 505]]
to Congress annual reports concerning enrollment and
participation rates described in such paragraph.''.
(e) <<NOTE: 42 USC 1396r-6 note.>> Effective Date.--The amendments
made by subsections (b) through (d) shall take effect on July 1, 2009.
SEC. 5005. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.
(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December
2009'' and inserting ``December 2010''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
(1) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph
(K);
(B) in subparagraph (L), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(M) <<NOTE: Time period.>> for the period that
begins on January 1, 2010, and ends on September 30,
2010, the total allocation amount is $412,500,000; and
``(N) <<NOTE: Time period.>> for the period that
begins on October 1, 2010, and ends on December 31,
2010, the total allocation amount is $150,000,000.'';
and
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``or (L)'' and inserting ``(L), or (N)''.
SEC. 5006. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.
(a) Premiums and Cost Sharing Protection Under Medicaid.--
(1) In general.--Section 1916 of the Social Security Act (42
U.S.C. 1396o) is amended--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``and (i)'' and inserting ``,
(i), and (j)''; and
(B) by adding at the end the following new
subsection:
``(j) No Premiums or Cost Sharing for Indians Furnished Items or
Services Directly by Indian Health Programs or Through Referral Under
Contract Health Services.--
``(1) No cost sharing for items or services furnished to
indians through indian health programs.--
``(A) In general.--No enrollment fee, premium, or
similar charge, and no deduction, copayment, cost
sharing, or similar charge shall be imposed against an
Indian who is furnished an item or service directly by
the Indian Health Service, an Indian Tribe, Tribal
Organization, or Urban Indian Organization or through
referral under contract health services for which
payment may be made under this title.
``(B) No reduction in amount of payment to indian
health providers.--Payment due under this title to the
Indian Health Service, an Indian Tribe, Tribal
Organization, or Urban Indian Organization, or a health
care provider through referral under contract health
services for the furnishing of an item or service to an
Indian who is eligible for assistance under such title,
may not be reduced by the amount of any enrollment fee,
premium, or similar charge, or any deduction, copayment,
cost
[[Page 123 STAT. 506]]
sharing, or similar charge that would be due from the
Indian but for the operation of subparagraph (A).
``(2) Rule of construction.--Nothing in this subsection
shall be construed as restricting the application of any other
limitations on the imposition of premiums or cost sharing that
may apply to an individual receiving medical assistance under
this title who is an Indian.''.
(2) Conforming amendment.--Section 1916A(b)(3) of such Act
(42 U.S.C. 1396o-1(b)(3)) is amended--
(A) in subparagraph (A), by adding at the end the
following new clause:
``(vii) An Indian who is furnished an item or
service directly by the Indian Health Service, an
Indian Tribe, Tribal Organization or Urban Indian
Organization or through referral under contract
health services.''; and
(B) in subparagraph (B), by adding at the end the
following new clause:
``(x) Items and services furnished to an
Indian directly by the Indian Health Service, an
Indian Tribe, Tribal Organization or Urban Indian
Organization or through referral under contract
health services.''.
(b) Treatment of Certain Property From Resources for Medicaid and
CHIP Eligibility.--
(1) Medicaid.--Section 1902 of the Social Security Act (42
U.S.C. 1396a), as amended by sections 203(c) and
211(a)(1)(A)(ii) of the Children's Health Insurance Program
Reauthorization Act of 2009 (Public Law 111-3), is amended by
adding at the end the following new subsection:
``(ff) Notwithstanding any other requirement of this title or any
other provision of Federal or State law, a State shall disregard the
following property from resources for purposes of determining the
eligibility of an individual who is an Indian for medical assistance
under this title:
``(1) Property, including real property and improvements,
that is held in trust, subject to Federal restrictions, or
otherwise under the supervision of the Secretary of the
Interior, located on a reservation, including any federally
recognized Indian Tribe's reservation, pueblo, or colony,
including former reservations in Oklahoma, Alaska Native regions
established by the Alaska Native Claims Settlement Act, and
Indian allotments on or near a reservation as designated and
approved by the Bureau of Indian Affairs of the Department of
the Interior.
``(2) For any federally recognized Tribe not described in
paragraph (1), property located within the most recent
boundaries of a prior Federal reservation.
``(3) Ownership interests in rents, leases, royalties, or
usage rights related to natural resources (including extraction
of natural resources or harvesting of timber, other plants and
plant products, animals, fish, and shellfish) resulting from the
exercise of federally protected rights.
``(4) Ownership interests in or usage rights to items not
covered by paragraphs (1) through (3) that have unique
religious, spiritual, traditional, or cultural significance or
rights that support subsistence or a traditional lifestyle
according to applicable tribal law or custom.''.
(2) Application to chip.--Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(e)(1)), as amended by sections 203(a)(2),
[[Page 123 STAT. 507]]
203(d)(2), 214(b), 501(d)(2), and 503(a)(1) of the Children's
Health Insurance Program Reauthorization Act of 2009 (Public Law
111-3), is amended--
(A) by redesignating subparagraphs (C) through (I),
as subparagraphs (D) through (J), respectively; and
(B) by inserting after subparagraph (B), the
following new subparagraph:
``(C) Section 1902(ff) (relating to disregard of
certain property for purposes of making eligibility
determinations).''.
(c) Continuation of Current Law Protections of Certain Indian
Property From Medicaid Estate Recovery.--Section 1917(b)(3) of the
Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following new subparagraph:
``(B) The standards specified by the Secretary under
subparagraph (A) shall require that the procedures
established by the State agency under subparagraph (A)
exempt income, resources, and property that are exempt
from the application of this subsection as of April 1,
2003, under manual instructions issued to carry out this
subsection (as in effect on such date) because of the
Federal responsibility for Indian Tribes and Alaska
Native Villages. Nothing in this subparagraph shall be
construed as preventing the Secretary from providing
additional estate recovery exemptions under this title
for Indians.''.
(d) Rules Applicable Under Medicaid and Chip to Managed Care
Entities With Respect to Indian Enrollees and Indian Health Care
Providers and Indian Managed Care Entities.--
(1) In general.--Section 1932 of the Social Security Act (42
U.S.C. 1396u-2) is amended by adding at the end the following
new subsection:
``(h) Special Rules With Respect to Indian Enrollees, Indian Health
Care Providers, and Indian Managed Care Entities.--
``(1) Enrollee option to select an indian health care
provider as primary care provider.--In the case of a non-Indian
Medicaid managed care entity that--
``(A) has an Indian enrolled with the entity; and
``(B) has an Indian health care provider that is
participating as a primary care provider within the
network of the entity,
insofar as the Indian is otherwise eligible to receive services
from such Indian health care provider and the Indian health care
provider has the capacity to provide primary care services to
such Indian, the contract with the entity under section 1903(m)
or under section 1905(t)(3) shall require, as a condition of
receiving payment under such contract, that the Indian shall be
allowed to choose such Indian health care provider as the
Indian's primary care provider under the entity.
``(2) Assurance of payment to indian health care providers
for provision of covered services.--Each contract with a managed
care entity under section 1903(m) or under section 1905(t)(3)
shall require any such entity, as a condition of receiving
payment under such contract, to satisfy the following
requirements:
[[Page 123 STAT. 508]]
``(A) Demonstration of access to indian health care
providers and application of alternative payment
arrangements.--Subject to subparagraph (C), to--
``(i) demonstrate that the number of Indian
health care providers that are participating
providers with respect to such entity are
sufficient to ensure timely access to covered
Medicaid managed care services for those Indian
enrollees who are eligible to receive services
from such providers; and
``(ii) agree to pay Indian health care
providers, whether such providers are
participating or nonparticipating providers with
respect to the entity, for covered Medicaid
managed care services provided to those Indian
enrollees who are eligible to receive services
from such providers at a rate equal to the rate
negotiated between such entity and the provider
involved or, if such a rate has not been
negotiated, at a rate that is not less than the
level and amount of payment which the entity would
make for the services if the services were
furnished by a participating provider which is not
an Indian health care provider.
<<NOTE: Procedures.>> The Secretary shall establish
procedures for applying the requirements of clause (i)
in States where there are no or few Indian health
providers.
``(B) Prompt payment.--To agree to make prompt
payment (consistent with rule for prompt payment of
providers under section 1932(f)) to Indian health care
providers that are participating providers with respect
to such entity or, in the case of an entity to which
subparagraph (A)(ii) or (C) applies, that the entity is
required to pay in accordance with that subparagraph.
``(C) Application of special payment requirements
for federally-qualified health centers and for services
provided by certain indian health care providers.--
``(i) Federally-qualified health centers.--
``(I) Managed care entity payment
requirement.--To agree to pay any Indian
health care provider that is a
federally-qualified health center under
this title but not a participating
provider with respect to the entity, for
the provision of covered Medicaid
managed care services by such provider
to an Indian enrollee of the entity at a
rate equal to the amount of payment that
the entity would pay a federally-
qualified health center that is a
participating provider with respect to
the entity but is not an Indian health
care provider for such services.
``(II) Continued application of
state requirement to make supplemental
payment.--Nothing in subclause (I) or
subparagraph (A) or (B) shall be
construed as waiving the application of
section 1902(bb)(5) regarding the State
plan requirement to make any
supplemental payment due under such
section to a federally-qualified health
center for services furnished by such
center to an enrollee of a managed care
entity (regardless
[[Page 123 STAT. 509]]
of whether the federally-qualified
health center is or is not a
participating provider with the entity).
``(ii) Payment rate for services provided by
certain indian health care providers.--If the
amount paid by a managed care entity to an Indian
health care provider that is not a federally-
qualified health center for services provided by
the provider to an Indian enrollee with the
managed care entity is less than the rate that
applies to the provision of such services by the
provider under the State plan, the plan shall
provide for payment to the Indian health care
provider, whether the provider is a participating
or nonparticipating provider with respect to the
entity, of the difference between such applicable
rate and the amount paid by the managed care
entity to the provider for such services.
``(D) Construction.--Nothing in this paragraph shall
be construed as waiving the application of section
1902(a)(30)(A) (relating to application of standards to
assure that payments are consistent with efficiency,
economy, and quality of care).
``(3) Special rule for enrollment for indian managed care
entities.--Regarding the application of a Medicaid managed care
program to Indian Medicaid managed care entities, an Indian
Medicaid managed care entity may restrict enrollment under such
program to Indians in the same manner as Indian Health Programs
may restrict the delivery of services to Indians.
``(4) Definitions.--For purposes of this subsection:
``(A) Indian health care provider.--The term `Indian
health care provider' means an Indian Health Program or
an Urban Indian Organization.
``(B) Indian medicaid managed care entity.--The term
`Indian Medicaid managed care entity' means a managed
care entity that is controlled (within the meaning of
the last sentence of section 1903(m)(1)(C)) by the
Indian Health Service, a Tribe, Tribal Organization, or
Urban Indian Organization, or a consortium, which may be
composed of 1 or more Tribes, Tribal Organizations, or
Urban Indian Organizations, and which also may include
the Service.
``(C) Non-indian medicaid managed care entity.--The
term `non-Indian Medicaid managed care entity' means a
managed care entity that is not an Indian Medicaid
managed care entity.
``(D) Covered medicaid managed care services.--The
term `covered Medicaid managed care services' means,
with respect to an individual enrolled with a managed
care entity, items and services for which benefits are
available with respect to the individual under the
contract between the entity and the State involved.
``(E) Medicaid managed care program.--The term
`Medicaid managed care program' means a program under
sections 1903(m), 1905(t), and 1932 and includes a
managed care program operating under a waiver under
section 1915(b) or 1115 or otherwise.''.
[[Page 123 STAT. 510]]
(2) Application to chip.--Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(1)), as amended by subsection (b)(2), is amended--
(A) by redesignating subparagraph (J) as
subparagraph (K); and
(B) by inserting after subparagraph (I) the
following new subparagraph:
``(J) Subsections (a)(2)(C) and (h) of section
1932.''.
(e) <<NOTE: 42 USC 1320b-24.>> Consultation on Medicaid, Chip, and
Other Health Care Programs Funded Under the Social Security Act
Involving Indian Health Programs and Urban Indian Organizations.--
(1) <<NOTE: Establishment.>> Consultation with tribal
technical advisory group (ttag).--The Secretary of Health and
Human Services shall maintain within the Centers for Medicaid &
Medicare Services (CMS) a Tribal Technical Advisory Group
(TTAG), which was first established in accordance with
requirements of the charter dated September 30, 2003, and the
Secretary of Health and Human Services shall include in such
Group a representative of a national urban Indian health
organization and a representative of the Indian Health Service.
The inclusion of a representative of a national urban Indian
health organization in such Group shall not affect the
nonapplication of the Federal Advisory Committee Act (5 U.S.C.
App.) to such Group.
(2) Solicitation of advice under medicaid and chip.--
(A) Medicaid state plan amendment.--Section 1902(a)
of the Social Security Act (42 U.S.C. 1396a(a)), as
amended by section 501(d)(1) of the Children's Health
Insurance Program Reauthorization Act of 2009 (Public
Law 111-3), (42 U.S.C. 1396a(a)) is amended--
(i) in paragraph (71), by striking ``and'' at
the end;
(ii) in paragraph (72), by striking the period
at the end and inserting ``; and''; and
(iii) by inserting after paragraph (72), the
following new paragraph:
``(73) in the case of any State in which 1 or more Indian
Health Programs or Urban Indian Organizations furnishes health
care services, provide for a process under which the State seeks
advice on a regular, ongoing basis from designees of such Indian
Health Programs and Urban Indian Organizations on matters
relating to the application of this title that are likely to
have a direct effect on such Indian Health Programs and Urban
Indian Organizations and that--
``(A) shall include solicitation of advice prior to
submission of any plan amendments, waiver requests, and
proposals for demonstration projects likely to have a
direct effect on Indians, Indian Health Programs, or
Urban Indian Organizations; and
``(B) may include appointment of an advisory
committee and of a designee of such Indian Health
Programs and Urban Indian Organizations to the medical
care advisory committee advising the State on its State
plan under this title.''.
(B) Application to chip.--Section 2107(e)(1) of such
Act (42 U.S.C. 1397gg(1)), as amended by subsections
(b)(2) and (d) (2), is amended--
[[Page 123 STAT. 511]]
(i) by redesignating subparagraphs (B), (C),
(D), (E), (F), (G), (H), (I), (J), and (K) as
subparagraphs (D), (F), (B), (E), (G), (I), (H),
(J), (K), and (L), respectively;
(ii) by moving such subparagraphs so as to
appear in alphabetical order; and
(iii) by inserting after subparagraph (B) (as
so redesiganted and moved) the following new
subparagraph:
``(C) Section 1902(a)(73) (relating to requiring
certain States to seek advice from designees of Indian
Health Programs and Urban Indian Organizations).''.
(3) <<NOTE: 42 USC 1396a note.>> Rule of construction.--
Nothing in the amendments made by this subsection shall be
construed as superseding existing advisory committees, working
groups, guidance, or other advisory procedures established by
the Secretary of Health and Human Services or by any State with
respect to the provision of health care to Indians.
(f) <<NOTE: 42 USC 1396a note.>> Effective Date.--The amendments
made by this section shall take effect on July 1, 2009.
SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION.
(a) Oversight.--For purposes of ensuring the proper expenditure of
Federal funds under title XIX of the Social Security Act (42 U.S.C. 1396
et seq.), there is appropriated to the Office of the Inspector General
of the Department of Health and Human Services, out of any money in the
Treasury not otherwise appropriated and without further appropriation,
$31,250,000 for fiscal year 2009, which shall remain available for
expenditure until September 30, 2011, and shall be in addition to any
other amounts appropriated or made available to such Office for such
purposes.
(b) Implementation of Increased FMAP.--For purposes of carrying out
section 5001, there is appropriated to the Secretary of Health and Human
Services, out of any money in the Treasury not otherwise appropriated
and without further appropriation, $5,000,000 for fiscal year 2009,
which shall remain available for expenditure until September 30, 2011,
and shall be in addition to any other amounts appropriated or made
available to such Secretary for such purposes.
SEC. 5008. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING PERIODS OF
NATIONAL ECONOMIC DOWNTURN.
(a) In General.--The Comptroller General of the United States shall
study the period of national economic downturn in effect on the date of
enactment of this Act, as well as previous periods of national economic
downturn since 1974, for the purpose of developing recommendations for
addressing the needs of States during such periods. As part of such
analysis, the Comptroller General shall study the past and projected
effects of temporary increases in the Federal medical assistance
percentage under the Medicaid program with respect to such periods.
(b) Report.--Not later than April 1, 2011, the Comptroller General
of the United States shall submit a report to the appropriate committees
of Congress on the results of the study conducted under paragraph (1).
Such report shall include the following:
(1) Such recommendations as the Comptroller General
determines appropriate for modifying the national economic
downturn assistance formula for temporary adjustment of the
[[Page 123 STAT. 512]]
Federal medical assistance percentage under Medicaid (also
referred to as a ``countercyclical FMAP'') described in GAO
report number GAO-07-97 to improve the effectiveness of the
application of such percentage in addressing the needs of States
during periods of national economic downturn, including
recommendations for--
(A) improvements to the factors that would begin and
end the application of such percentage;
(B) how the determination of the amount of such
percentage could be adjusted to address State and
regional economic variations during such periods; and
(C) how the determination of the amount of such
percentage could be adjusted to be more responsive to
actual Medicaid costs incurred by States during such
periods.
(2) An analysis of the impact on States during such periods
of--
(A) declines in private health benefits coverage;
(B) declines in State revenues; and
(C) caseload maintenance and growth under Medicaid,
the Children's Health Insurance Program, or any other
publicly-funded programs to provide health benefits
coverage for State residents.
(3) Identification of, and recommendations for addressing,
the effects on States of any other specific economic indicators
that the Comptroller General determines appropriate.
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
SEC. 6000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
Sec. 6000. Table of contents.
Sec. 6001. Broadband Technology Opportunities Program.
SEC. 6001. <<NOTE: 47 USC 1305.>> BROADBAND TECHNOLOGY OPPORTUNITIES
PROGRAM.
(a) The Assistant Secretary of Commerce for Communications and
Information (Assistant Secretary), in consultation with the Federal
Communications Commission (Commission), shall establish a national
broadband service development and expansion program in conjunction with
the technology opportunities program, which shall be referred to as the
Broadband Technology Opportunities Program. The Assistant Secretary
shall ensure that the program complements and enhances and does not
conflict with other Federal broadband initiatives and programs.
(b) The purposes of the program are to--
(1) provide access to broadband service to consumers
residing in unserved areas of the United States;
(2) provide improved access to broadband service to
consumers residing in underserved areas of the United States;
(3) provide broadband education, awareness, training,
access, equipment, and support to--
(A) schools, libraries, medical and healthcare
providers, community colleges and other institutions of
higher education, and other community support
organizations and
[[Page 123 STAT. 513]]
entities to facilitate greater use of broadband service
by or through these organizations;
(B) organizations and agencies that provide
outreach, access, equipment, and support services to
facilitate greater use of broadband service by low-
income, unemployed, aged, and otherwise vulnerable
populations; and
(C) job-creating strategic facilities located within
a State-designated economic zone, Economic Development
District designated by the Department of Commerce,
Renewal Community or Empowerment Zone designated by the
Department of Housing and Urban Development, or
Enterprise Community designated by the Department of
Agriculture;
(4) improve access to, and use of, broadband service by
public safety agencies; and
(5) stimulate the demand for broadband, economic growth, and
job creation.
(c) The Assistant Secretary may consult a State, the District of
Columbia, or territory or possession of the United States with respect
to--
(1) the identification of areas described in subsection
(b)(1) or (2) located in that State; and
(2) the allocation of grant funds within that State for
projects in or affecting the State.
(d) The Assistant Secretary shall--
(1) <<NOTE: Grants.>> establish and implement the grant
program as expeditiously as practicable;
(2) <<NOTE: Deadline.>> ensure that all awards are made
before the end of fiscal year 2010;
(3) seek such assurances as may be necessary or appropriate
from grantees under the program that they will substantially
complete projects supported by the program in accordance with
project timelines, not to exceed 2 years following an award; and
(4) <<NOTE: Reports. Deadlines.>> report on the status of
the program to the Committees on Appropriations of the House of
Representatives and the Senate, the Committee on Energy and
Commerce of the House of Representatives, and the Committee on
Commerce, Science, and Transportation of the Senate, every 90
days.
(e) To be eligible for a grant under the program, an applicant
shall--
(1)(A) be a State or political subdivision thereof, the
District of Columbia, a territory or possession of the United
States, an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450(b)) or native Hawaiian organization;
(B) a nonprofit--
(i) foundation,
(ii) corporation,
(iii) institution, or
(iv) association; or
(C) any other entity, including a broadband service
or infrastructure provider, that the Assistant Secretary
finds by rule to be in the public interest. In
establishing such rule, the Assistant Secretary shall to
the extent practicable promote the purposes of this
section in a technologically neutral manner;
[[Page 123 STAT. 514]]
(2) submit an application, at such time, in such form, and
containing such information as the Assistant Secretary may
require;
(3) provide a detailed explanation of how any amount
received under the program will be used to carry out the
purposes of this section in an efficient and expeditious manner,
including a showing that the project would not have been
implemented during the grant period without Federal grant
assistance;
(4) demonstrate, to the satisfaction of the Assistant
Secretary, that it is capable of carrying out the project or
function to which the application relates in a competent manner
in compliance with all applicable Federal, State, and local
laws;
(5) demonstrate, to the satisfaction of the Assistant
Secretary, that it will appropriate (if the applicant is a State
or local government agency) or otherwise unconditionally
obligate, from non-Federal sources, funds required to meet the
requirements of subsection (f);
(6) disclose to the Assistant Secretary the source and
amount of other Federal or State funding sources from which the
applicant receives, or has applied for, funding for activities
or projects to which the application relates; and
(7) provide such assurances and procedures as the Assistant
Secretary may require to ensure that grant funds are used and
accounted for in an appropriate manner.
(f) The Federal share of any project may not exceed 80 percent,
except that the Assistant Secretary may increase the Federal share of a
project above 80 percent if--
(1) the applicant petitions the Assistant Secretary for a
waiver; and
(2) the Assistant Secretary determines that the petition
demonstrates financial need.
(g) The Assistant Secretary may make competitive grants under the
program to--
(1) acquire equipment, instrumentation, networking
capability, hardware and software, digital network technology,
and infrastructure for broadband services;
(2) construct and deploy broadband service related
infrastructure;
(3) ensure access to broadband service by community anchor
institutions;
(4) facilitate access to broadband service by low-income,
unemployed, aged, and otherwise vulnerable populations in order
to provide educational and employment opportunities to members
of such populations;
(5) construct and deploy broadband facilities that improve
public safety broadband communications services; and
(6) undertake such other projects and activities as the
Assistant Secretary finds to be consistent with the purposes for
which the program is established.
(h) The Assistant Secretary, in awarding grants under this section,
shall, to the extent practical--
(1) award not less than 1 grant in each State;
(2) consider whether an application to deploy infrastructure
in an area--
[[Page 123 STAT. 515]]
(A) will, if approved, increase the affordability
of, and subscribership to, service to the greatest
population of users in the area;
(B) will, if approved, provide the greatest
broadband speed possible to the greatest population of
users in the area;
(C) will, if approved, enhance service for health
care delivery, education, or children to the greatest
population of users in the area; and
(D) will, if approved, not result in unjust
enrichment as a result of support for non-recurring
costs through another Federal program for service in the
area; and
(3) consider whether the applicant is a socially and
economically disadvantaged small business concern as defined
under section 8(a) of the Small Business Act (15 U.S.C. 637).
(i) The Assistant Secretary--
(1) <<NOTE: Reports. Deadlines. Public information.>> shall
require any entity receiving a grant pursuant to this section to
report quarterly, in a format specified by the Assistant
Secretary, on such entity's use of the assistance and progress
fulfilling the objectives for which such funds were granted, and
the Assistant Secretary shall make these reports available to
the public;
(2) may establish additional reporting and information
requirements for any recipient of any assistance made available
pursuant to this section;
(3) shall establish appropriate mechanisms to ensure
appropriate use and compliance with all terms of any use of
funds made available pursuant to this section;
(4) may, in addition to other authority under applicable
law, deobligate awards to grantees that demonstrate an
insufficient level of performance, or wasteful or fraudulent
spending, as defined in advance by the Assistant Secretary, and
award these funds competitively to new or existing applicants
consistent with this section; and
(5) <<NOTE: Database. Web site. Records.>> shall create and
maintain a fully searchable database, accessible on the Internet
at no cost to the public, that contains at least a list of each
entity that has applied for a grant under this section, a
description of each application, the status of each such
application, the name of each entity receiving funds made
available pursuant to this section, the purpose for which such
entity is receiving such funds, each quarterly report submitted
by the entity pursuant to this section, and such other
information sufficient to allow the public to understand and
monitor grants awarded under the program.
(j) <<NOTE: Publication.>> Concurrent with the issuance of the
Request for Proposal for grant applications pursuant to this section,
the Assistant Secretary shall, in coordination with the Commission,
publish the non-discrimination and network interconnection obligations
that shall be contractual conditions of grants awarded under this
section, including, at a minimum, adherence to the principles contained
in the Commission's broadband policy statement (FCC 05-15, adopted
August 5, 2005).
(k)(1) <<NOTE: Deadline. Reports. Broadband plan.>> Not later than 1
year after the date of enactment of this section, the Commission shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate, a report containing a national broadband
plan.
[[Page 123 STAT. 516]]
(2) The national broadband plan required by this section
shall seek to ensure that all people of the United States have
access to broadband capability and shall establish benchmarks
for meeting that goal. The plan shall also include--
(A) an analysis of the most effective and efficient
mechanisms for ensuring broadband access by all people
of the United States;
(B) a detailed strategy for achieving affordability
of such service and maximum utilization of broadband
infrastructure and service by the public;
(C) an evaluation of the status of deployment of
broadband service, including progress of projects
supported by the grants made pursuant to this section;
and
(D) a plan for use of broadband infrastructure and
services in advancing consumer welfare, civic
participation, public safety and homeland security,
community development, health care delivery, energy
independence and efficiency, education, worker training,
private sector investment, entrepreneurial activity, job
creation and economic growth, and other national
purposes.
(3) In developing the plan, the Commission shall have access
to data provided to other Government agencies under the
Broadband Data Improvement Act (47 U.S.C. 1301 note).
(l) <<NOTE: Broadband map.>> The Assistant Secretary shall develop
and maintain a comprehensive nationwide inventory map of existing
broadband service capability and availability in the United States that
depicts the geographic extent to which broadband service capability is
deployed and available from a commercial provider or public provider
throughout each State. <<NOTE: Deadline. Web posting. Public
information.>> Not later than 2 years after the date of the enactment of
this Act, the Assistant Secretary shall make the broadband inventory map
developed and maintained pursuant to this section accessible by the
public on a World Wide Web site of the National Telecommunications and
Information Administration in a form that is interactive and searchable.
(m) <<NOTE: Regulations.>> The Assistant Secretary shall have the
authority to prescribe such rules as are necessary to carry out the
purposes of this section.
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
SEC. 7000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
Sec. 7000. Table of contents.
Sec. 7001. Executive compensation and corporate governance.
Sec. 7002. Applicability with respect to loan modifications.
SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.
Section 111 of the Emergency Economic Stabilization Act of 2008 (12
U.S.C. 5221) is amended to read as follows:
[[Page 123 STAT. 517]]
``SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.
``(a) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Senior executive officer.--The term `senior executive
officer' means an individual who is 1 of the top 5 most highly
paid executives of a public company, whose compensation is
required to be disclosed pursuant to the Securities Exchange Act
of 1934, and any regulations issued thereunder, and non-public
company counterparts.
``(2) Golden parachute payment.--The term `golden parachute
payment' means any payment to a senior executive officer for
departure from a company for any reason, except for payments for
services performed or benefits accrued.
``(3) TARP recipient.--The term `TARP recipient' means any
entity that has received or will receive financial assistance
under the financial assistance provided under the TARP.
``(4) Commission.--The term `Commission' means the
Securities and Exchange Commission.
``(5) Period in which obligation is outstanding; rule of
construction.--For purposes of this section, the period in which
any obligation arising from financial assistance provided under
the TARP remains outstanding does not include any period during
which the Federal Government only holds warrants to purchase
common stock of the TARP recipient.
``(b) Executive Compensation and Corporate Governance.--
``(1) Establishment of standards.--During the period in
which any obligation arising from financial assistance provided
under the TARP remains outstanding, each TARP recipient shall be
subject to--
``(A) the standards established by the Secretary
under this section; and
``(B) the provisions of section 162(m)(5) of the
Internal Revenue Code of 1986, as applicable.
``(2) Standards required.--The Secretary shall require each
TARP recipient to meet appropriate standards for executive
compensation and corporate governance.
``(3) Specific requirements.--The standards established
under paragraph (2) shall include the following:
``(A) Limits on compensation that exclude incentives
for senior executive officers of the TARP recipient to
take unnecessary and excessive risks that threaten the
value of such recipient during the period in which any
obligation arising from financial assistance provided
under the TARP remains outstanding.
``(B) A provision for the recovery by such TARP
recipient of any bonus, retention award, or incentive
compensation paid to a senior executive officer and any
of the next 20 most highly-compensated employees of the
TARP recipient based on statements of earnings,
revenues, gains, or other criteria that are later found
to be materially inaccurate.
``(C) A prohibition on such TARP recipient making
any golden parachute payment to a senior executive
officer or any of the next 5 most highly-compensated
employees of the TARP recipient during the period in
which any
[[Page 123 STAT. 518]]
obligation arising from financial assistance provided
under the TARP remains outstanding.
``(D)(i) A prohibition on such TARP recipient paying
or accruing any bonus, retention award, or incentive
compensation during the period in which any obligation
arising from financial assistance provided under the
TARP remains outstanding, except that any prohibition
developed under this paragraph shall not apply to the
payment of long-term restricted stock by such TARP
recipient, provided that such long-term restricted
stock--
``(I) does not fully vest during the period in
which any obligation arising from financial
assistance provided to that TARP recipient remains
outstanding;
``(II) has a value in an amount that is not
greater than \1/3\ of the total amount of annual
compensation of the employee receiving the stock;
and
``(III) is subject to such other terms and
conditions as the Secretary may determine is in
the public interest.
``(ii) <<NOTE: Applicability.>> The prohibition
required under clause (i) shall apply as follows:
``(I) For any financial institution that
received financial assistance provided under the
TARP equal to less than $25,000,000, the
prohibition shall apply only to the most highly
compensated employee of the financial institution.
``(II) For any financial institution that
received financial assistance provided under the
TARP equal to at least $25,000,000, but less than
$250,000,000, the prohibition shall apply to at
least the 5 most highly-compensated employees of
the financial institution, or such higher number
as the Secretary may determine is in the public
interest with respect to any TARP recipient.
``(III) For any financial institution that
received financial assistance provided under the
TARP equal to at least$250,000,000, but less than
$500,000,000, the prohibition shall apply to the
senior executive officers and at least the 10 next
most highly-compensated employees, or such higher
number as the Secretary may determine is in the
public interest with respect to any TARP
recipient.
``(IV) For any financial institution that
received financial assistance provided under the
TARP equal to $500,000,000 or more, the
prohibition shall apply to the senior executive
officers and at least the 20 next most highly-
compensated employees, or such higher number as
the Secretary may determine is in the public
interest with respect to any TARP recipient.
``(iii) The prohibition required under clause (i)
shall not be construed to prohibit any bonus payment
required to be paid pursuant to a written employment
contract executed on or before February 11, 2009, as
such valid employment contracts are determined by the
Secretary or the designee of the Secretary.
``(E) A prohibition on any compensation plan that
would encourage manipulation of the reported earnings of
such
[[Page 123 STAT. 519]]
TARP recipient to enhance the compensation of any of its
employees.
``(F) A requirement for the establishment of a Board
Compensation Committee that meets the requirements of
subsection (c).
``(4) Certification of compliance.--The chief executive
officer and chief financial officer (or the equivalents thereof)
of each TARP recipient shall provide a written certification of
compliance by the TARP recipient with the requirements of this
section--
``(A) in the case of a TARP recipient, the
securities of which are publicly traded, to the
Securities and Exchange Commission, together with annual
filings required under the securities laws; and
``(B) in the case of a TARP recipient that is not a
publicly traded company, to the Secretary.
``(c) Board Compensation Committee.--
``(1) Establishment of board required.--Each TARP recipient
shall establish a Board Compensation Committee, comprised
entirely of independent directors, for the purpose of reviewing
employee compensation plans.
``(2) Meetings.--The Board Compensation Committee of each
TARP recipient shall meet at least semiannually to discuss and
evaluate employee compensation plans in light of an assessment
of any risk posed to the TARP recipient from such plans.
``(3) Compliance by non-sec registrants.--In the case of any
TARP recipient, the common or preferred stock of which is not
registered pursuant to the Securities Exchange Act of 1934, and
that has received $25,000,000 or less of TARP assistance, the
duties of the Board Compensation Committee under this subsection
shall be carried out by the board of directors of such TARP
recipient.
``(d) Limitation on Luxury Expenditures.--The board of directors of
any TARP recipient shall have in place a company-wide policy regarding
excessive or luxury expenditures, as identified by the Secretary, which
may include excessive expenditures on--
``(1) entertainment or events;
``(2) office and facility renovations;
``(3) aviation or other transportation services; or
``(4) other activities or events that are not reasonable
expenditures for staff development, reasonable performance
incentives, or other similar measures conducted in the normal
course of the business operations of the TARP recipient.
``(e) Shareholder Approval of Executive Compensation.--
``(1) Annual shareholder approval of executive
compensation.--Any proxy or consent or authorization for an
annual or other meeting of the shareholders of any TARP
recipient during the period in which any obligation arising from
financial assistance provided under the TARP remains outstanding
shall permit a separate shareholder vote to approve the
compensation of executives, as disclosed pursuant to the
compensation disclosure rules of the Commission (which
disclosure shall include the compensation discussion and
analysis, the compensation tables, and any related material).
``(2) Nonbinding vote.--A shareholder vote described in
paragraph (1) shall not be binding on the board of directors of
a TARP recipient, and may not be construed as overruling
[[Page 123 STAT. 520]]
a decision by such board, nor to create or imply any additional
fiduciary duty by such board, nor shall such vote be construed
to restrict or limit the ability of shareholders to make
proposals for inclusion in proxy materials related to executive
compensation.
``(3) Deadline for rulemaking.--Not later than 1 year after
the date of enactment of the American Recovery and Reinvestment
Act of 2009, the Commission shall issue any final rules and
regulations required by this subsection.
``(f) Review of Prior Payments to Executives.--
``(1) In general.--The Secretary shall review bonuses,
retention awards, and other compensation paid to the senior
executive officers and the next 20 most highly-compensated
employees of each entity receiving TARP assistance before the
date of enactment of the American Recovery and Reinvestment Act
of 2009, to determine whether any such payments were
inconsistent with the purposes of this section or the TARP or
were otherwise contrary to the public interest.
``(2) Negotiations for reimbursement.--If the Secretary
makes a determination described in paragraph (1), the Secretary
shall seek to negotiate with the TARP recipient and the subject
employee for appropriate reimbursements to the Federal
Government with respect to compensation or bonuses.
``(g) No Impediment to Withdrawal by TARP Recipients.--Subject to
consultation with the appropriate Federal banking agency (as that term
is defined in section 3 of the Federal Deposit Insurance Act), if any,
the Secretary shall permit a TARP recipient to repay any assistance
previously provided under the TARP to such financial institution,
without regard to whether the financial institution has replaced such
funds from any other source or to any waiting period, and when such
assistance is repaid, the Secretary shall liquidate warrants associated
with such assistance at the current market price.
``(h) Regulations.--The Secretary shall promulgate regulations to
implement this section.''.
[[Page 123 STAT. 521]]
SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS.
Section 109(a) of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5219(a)) is amended--
(1) by striking ``To the extent'' and inserting the
following:
``(1) In general.--To the extent''; and
(2) by adding at the end the following:
``(2) Waiver of certain provisions in connection with loan
modifications.--The Secretary shall not be required to apply
executive compensation restrictions under section 111, or to
receive warrants or debt instruments under section 113, solely
in connection with any loan modification under this section.''.
Approved February 17, 2009.
LEGISLATIVE HISTORY--H.R. 1 (S. 336) (S. 350):
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SENATE REPORTS: No. 111-3 accompanying S. 336 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 155 (2009):
Jan. 27, 28, considered and passed House.
Feb. 2-7, 9, 10, considered and passed Senate, amended.
Feb. 13, House and Senate agreed to conference report.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
Feb. 17, Presidential remarks and statement.
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