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   111th Congress                                     Report
   1st Session        HOUSE OF REPRESENTATIVES        111-16
_______________________________________________________________________


 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

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 1

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


               February 12, 2009.--Ordered to be printed




 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


111th Congress                                                   Report
 1st Session            HOUSE OF REPRESENTATIVES                 111-16
_______________________________________________________________________



 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

                               __________

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 1

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


               February 12, 2009.--Ordered to be printed





111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     111-16

======================================================================

 
 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

                                _______
                                

               February 12, 2009.--Ordered to be printed

                                _______
                                

  Mr. Obey, from the Committee of Conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany H.R. 1]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1) ``making supplemental appropriations for job preservation 
and creation, infrastructure investment, energy efficiency and 
science, assistance to the unemployed, and State and local 
fiscal stabilization, for the fiscal year ending September 30, 
2009, and for other purposes'', having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Recovery and 
Reinvestment Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

                  DIVISION A--APPROPRIATIONS PROVISIONS

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, 
          AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND 
          EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED 
          AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION FUND
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
TITLE XVI--GENERAL PROVISIONS--THIS ACT

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

TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY; 
          MISCELLANEOUS MEDICARE PROVISIONS
TITLE V--STATE FISCAL RELIEF
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

SEC. 3. PURPOSES AND PRINCIPLES.

    (a) Statement of Purposes.--The purposes of this Act 
include the following:
            (1) To preserve and create jobs and promote 
        economic recovery.
            (2) To assist those most impacted by the recession.
            (3) To provide investments needed to increase 
        economic efficiency by spurring technological advances 
        in science and health.
            (4) To invest in transportation, environmental 
        protection, and other infrastructure that will provide 
        long-term economic benefits.
            (5) To stabilize State and local government 
        budgets, in order to minimize and avoid reductions in 
        essential services and counterproductive State and 
        local tax increases.
    (b) General Principles Concerning Use of Funds.--The 
President and the heads of Federal departments and agencies 
shall manage and expend the funds made available in this Act so 
as to achieve the purposes specified in subsection (a), 
including commencing expenditures and activities as quickly as 
possible consistent with prudent management.

SEC. 4. REFERENCES.

     Except as expressly provided otherwise, any reference to 
``this Act'' contained in any division of this Act shall be 
treated as referring only to the provisions of that division.

SEC. 5. EMERGENCY DESIGNATIONS.

    (a) In General.--Each amount in this Act is designated as 
an emergency requirement and necessary to meet emergency needs 
pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) 
and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the 
concurrent resolutions on the budget for fiscal years 2008 and 
2009.
    (b) Pay-as-You-Go.--All applicable provisions in this Act 
are designated as an emergency for purposes of pay-as-you-go 
principles.

                 DIVISION A--APPROPRIATIONS PROVISIONS

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

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

                       DEPARTMENT OF AGRICULTURE

        Agriculture Buildings and Facilities and Rental Payments

    For an additional amount for ``Agriculture Buildings and 
Facilities and Rental Payments'', $24,000,000, for necessary 
construction, repair, and improvement activities.

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'', $22,500,000, to remain available until September 30, 
2013, for oversight and audit of programs, grants, and 
activities funded by this Act and administered by the 
Department of Agriculture.

                     Agricultural Research Service

                        buildings and facilities

    For an additional amount for ``Buildings and Facilities'', 
$176,000,000, for work on deferred maintenance at Agricultural 
Research Service facilities: Provided, That priority in the use 
of such funds shall be given to critical deferred maintenance, 
to projects that can be completed, and to activities that can 
commence promptly following enactment of this Act.

                          Farm Service Agency

                         salaries and expenses

    For an additional amount for ``Farm Service Agency, 
Salaries and Expenses,'' $50,000,000, for the purpose of 
maintaining and modernizing the information technology system.

                 Natural Resources Conservation Service

               watershed and flood prevention operations

     For an additional amount for ``Watershed and Flood 
Prevention Operations'', $290,000,000, of which $145,000,000 is 
for necessary expenses to purchase and restore floodplain 
easements as authorized by section 403 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2203) (except that no more than 
$30,000,000 of the amount provided for the purchase of 
floodplain easements may be obligated for projects in any one 
State): Provided, That such funds shall be allocated to 
projects that can be fully funded and completed with the funds 
appropriated in this Act, and to activities that can commence 
promptly following enactment of this Act.

                    watershed rehabilitation program

    For an additional amount for ``Watershed Rehabilitation 
Program'', $50,000,000: Provided, That such funds shall be 
allocated to projects that can be fully funded and completed 
with the funds appropriated in this Act, and to activities that 
can commence promptly following enactment of this Act.

                         Rural Housing Service

              rural housing insurance fund program account

    For an additional amount for gross obligations for the 
principal amount of direct and guaranteed loans as authorized 
by title V of the Housing Act of 1949, to be available from 
funds in the rural housing insurance fund, as follows: 
$1,000,000,000 for section 502 direct loans; and 
$10,472,000,000 for section 502 unsubsidized guaranteed loans.
    For an additional amount for the cost of direct and 
guaranteed loans, including the cost of modifying loans, as 
defined in section 502 of the Congressional Budget Act of 1974, 
as follows: $67,000,000 for section 502 direct loans; and 
$133,000,000 for section 502 unsubsidized guaranteed loans.

               rural community facilities program account

    For an additional amount for the cost of direct loans and 
grants for rural community facilities programs as authorized by 
section 306 and described in section 381E(d)(1) of the 
Consolidated Farm and Rural Development Act, $130,000,000.

                  Rural Business--Cooperative Service

                     rural business program account

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

                        Rural Utilities Service

             rural water and waste disposal program account

    For an additional amount for the cost of direct loans and 
grants for the rural water, waste water, and waste disposal 
programs authorized by sections 306 and 310B and described in 
section 381E(d)(2) of the Consolidated Farm and Rural 
Development Act, $1,380,000,000.

         distance learning, telemedicine, and broadband program

    For an additional amount for the cost of broadband loans 
and loan guarantees, as authorized by the Rural Electrification 
Act of 1936 (7 U.S.C. 901 et seq.) and for grants (including 
for technical assistance), $2,500,000,000: Provided, That the 
cost of direct and guaranteed loans shall be as defined in 
section 502 of the Congressional Budget Act of 1974: Provided 
further, That, notwithstanding title VI of the Rural 
Electrification Act of 1936, this amount is available for 
grants, loans and loan guarantees for broadband infrastructure 
in any area of the United States: Provided further, That at 
least 75 percent of the area to be served by a project 
receiving funds from such grants, loans or loan guarantees 
shall be in a rural area without sufficient access to high 
speed broadband service to facilitate rural economic 
development, as determined by the Secretary of Agriculture: 
Provided further, That priority for awarding such funds shall 
be given to project applications for broadband systems that 
will deliver end users a choice of more than one service 
provider: Provided further, That priority for awarding funds 
made available under this paragraph shall be given to projects 
that provide service to the highest proportion of rural 
residents that do not have access to broadband service: 
Provided further, That priority shall be given for project 
applications from borrowers or former borrowers under title II 
of the Rural Electrification Act of 1936 and for project 
applications that include such borrowers or former borrowers: 
Provided further, That priority for awarding such funds shall 
be given to project applications that demonstrate that, if the 
application is approved, all project elements will be fully 
funded: Provided further, That priority for awarding such funds 
shall be given to project applications for activities that can 
be completed if the requested funds are provided: Provided 
further, That priority for awarding such funds shall be given 
to activities that can commence promptly following approval: 
Provided further, That no area of a project funded with amounts 
made available under this paragraph may receive funding to 
provide broadband service under the Broadband Technology 
Opportunities Program: Provided further, That the Secretary 
shall submit a report on planned spending and actual 
obligations describing the use of these funds not later than 90 
days after the date of enactment of this Act, and quarterly 
thereafter until all funds are obligated, to the Committees on 
Appropriations of the House of Representatives and the Senate.

                       Food and Nutrition Service

                        CHILD NUTRITION PROGRAMS

    For an additional amount for the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.), except 
section 21, and the Child Nutrition Act of 1966 (42 U.S.C. 1771 
et seq.), except sections 17 and 21, $100,000,000, to carry out 
a grant program for National School Lunch Program equipment 
assistance: Provided, That such funds shall be provided to 
States administering a school lunch program in a manner 
proportional with each State's administrative expense 
allocation: Provided further, That the States shall provide 
competitive grants to school food authorities based upon the 
need for equipment assistance in participating schools with 
priority given to schools in which not less than 50 percent of 
the students are eligible for free or reduced price meals under 
the Richard B. Russell National School Lunch Act.

special supplemental nutrition program for women, infants, and children 
                                 (wic)

    For an additional amount for the special supplemental 
nutrition program as authorized by section 17 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786), $500,000,000, of which 
$400,000,000 shall be placed in reserve to be allocated as the 
Secretary deems necessary, notwithstanding section 17(i) of 
such Act, to support participation should cost or participation 
exceed budget estimates, and of which $100,000,000 shall be for 
the purposes specified in section 17(h)(10)(B)(ii): Provided, 
That up to one percent of the funding provided for the purposes 
specified in section 17(h)(10)(B)(ii) may be reserved by the 
Secretary for Federal administrative activities in support of 
those purposes.

                      commodity assistance program

    For an additional amount for the emergency food assistance 
program as authorized by section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) and section 204(a)(1) 
of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
7508(a)(1)), $150,000,000: Provided, That of the funds made 
available, the Secretary may use up to $50,000,000 for costs 
associated with the distribution of commodities, of which up to 
$25,000,000 shall be made available in fiscal year 2009.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 101. Temporary Increase in Benefits Under the 
Supplemental Nutrition Assistance Program. (a) Maximum Benefit 
Increase.--
            (1) In general.--Beginning the first month that 
        begins not less than 25 days after the date of 
        enactment of this Act, the value of benefits determined 
        under section 8(a) of the Food and Nutrition Act of 
        2008 and consolidated block grants for Puerto Rico and 
        American Samoa determined under section 19(a) of such 
        Act shall be calculated using 113.6 percent of the June 
        2008 value of the thrifty food plan as specified under 
        section 3(o) of such Act.
            (2) Termination.--
                    (A) The authority provided by this 
                subsection shall terminate after September 30, 
                2009.
                    (B) Notwithstanding subparagraph (A), the 
                Secretary of Agriculture may not reduce the 
                value of the maximum allotments, minimum 
                allotments or consolidated block grants for 
                Puerto Rico and American Samoa below the level 
                in effect for fiscal year 2009 as a result of 
                paragraph (1).
    (b) Requirements for the Secretary.--In carrying out this 
section, the Secretary shall--
            (1) consider the benefit increases described in 
        subsection (a) to be a ``mass change'';
            (2) require a simple process for States to notify 
        households of the increase in benefits;
            (3) consider section 16(c)(3)(A) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply 
        to any errors in the implementation of this section, 
        without regard to the 120-day limit described in that 
        section;
            (4) disregard the additional amount of benefits 
        that a household receives as a result of this section 
        in determining the amount of overissuances under 
        section 13 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2022); and
            (5) set the tolerance level for excluding small 
        errors for the purposes of section 16(c) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2025(c)) at $50 
        through September 30, 2009.
    (c) Administrative Expenses.--
            (1) In general.--For the costs of State 
        administrative expenses associated with carrying out 
        this section and administering the supplemental 
        nutrition assistance program established under the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the 
        Secretary shall make available $145,000,000 in fiscal 
        year 2009 and $150,000,000 in fiscal year 2010, of 
        which $4,500,000 is for necessary expenses of the Food 
        and Nutrition Service for management and oversight of 
        the program and for monitoring the integrity and 
        evaluating the effects of the payments made under this 
        section.
            (2) Timing for fiscal year 2009.--Not later than 60 
        days after the date of enactment of this Act, the 
        Secretary shall make available to States amounts for 
        fiscal year 2009 under paragraph (1).
            (3) Allocation of funds.--Except as provided for 
        management and oversight, funds described in paragraph 
        (1) shall be made available as grants to State agencies 
        for each fiscal year as follows:
                    (A) 75 percent of the amounts available for 
                each fiscal year shall be allocated to States 
                based on the share of each State of households 
                that participate in the supplemental nutrition 
                assistance program as reported to the 
                Department of Agriculture for the most recent 
                12-month period for which data are available, 
                adjusted by the Secretary (as of the date of 
                enactment) for participation in disaster 
                programs under section 5(h) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2014(h)); and
                    (B) 25 percent of the amounts available for 
                each fiscal year shall be allocated to States 
                based on the increase in the number of 
                households that participate in the supplemental 
                nutrition assistance program as reported to the 
                Department of Agriculture over the most recent 
                12-month period for which data are available, 
                adjusted by the Secretary (as of the date of 
                enactment) for participation in disaster 
                programs under section 5(h) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2014(h)).
    (d) Food Distribution Program on Indian Reservations.--For 
the costs relating to facility improvements and equipment 
upgrades associated with the Food Distribution Program on 
Indian Reservations, as established under section 4(b) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)), the 
Secretary shall make available $5,000,000: Provided, That 
administrative cost-sharing requirements are not applicable to 
funds provided in accordance with this provision.
    (e) Treatment of Jobless Workers.--
            (1) Remainder of fiscal year 2009 through fiscal 
        year 2010.--Beginning with the first month that begins 
        not less than 25 days after the date of enactment of 
        this Act and for each subsequent month through 
        September 30, 2010, eligibility for supplemental 
        nutrition assistance program benefits shall not be 
        limited under section 6(o)(2) of the Food and Nutrition 
        Act of 2008 unless an individual does not comply with 
        the requirements of a program offered by the State 
        agency that meets the standards of subparagraphs (B) or 
        (C) of that paragraph.
            (2) Fiscal year 2011 and thereafter.--Beginning on 
        October 1, 2010, for the purposes of section 6(o) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)), 
        a State agency shall disregard any period during which 
        an individual received benefits under the supplemental 
        nutrition assistance program prior to October 1, 2010.
    (f)  Funding.--There are appropriated to the Secretary out 
of funds of the Treasury not otherwise appropriated such sums 
as are necessary to carry out this section.
    Sec. 102. Agricultural Disaster Assistance Transition.(a) 
Federal Crop Insurance Act.--Section 531(g) of the Federal Crop 
Insurance Act (7 U.S.C. 1531(g)) is amended by adding at the 
end the following:
            ``(7) 2008 transition assistance.--
                    ``(A) In general.--Eligible producers on a 
                farm described in subparagraph (A) of paragraph 
                (4) that failed to timely pay the appropriate 
                fee described in that subparagraph shall be 
                eligible for assistance under this section in 
                accordance with subparagraph (B) if the 
                eligible producers on the farm--
                            ``(i) pay the appropriate fee 
                        described in paragraph (4)(A) not later 
                        than 90 days after the date of 
                        enactment of this paragraph; and
                            ``(ii)(I) in the case of each 
                        insurable commodity of the eligible 
                        producers on the farm, excluding 
                        grazing land, agree to obtain a policy 
                        or plan of insurance under subtitle A 
                        (excluding a crop insurance pilot 
                        program under that subtitle) for the 
                        next insurance year for which crop 
                        insurance is available to the eligible 
                        producers on the farm at a level of 
                        coverage equal to 70 percent or more of 
                        the recorded or appraised average yield 
                        indemnified at 100 percent of the 
                        expected market price, or an equivalent 
                        coverage; and
                            ``(II) in the case of each 
                        noninsurable commodity of the eligible 
                        producers on the farm, agree to file 
                        the required paperwork, and pay the 
                        administrative fee by the applicable 
                        State filing deadline, for the 
                        noninsured crop assistance program for 
                        the next year for which a policy is 
                        available.
                    ``(B) Amount of assistance.--Eligible 
                producers on a farm that meet the requirements 
                of subparagraph (A) shall be eligible to 
                receive assistance under this section as if the 
                eligible producers on the farm--
                            ``(i) in the case of each insurable 
                        commodity of the eligible producers on 
                        the farm, had obtained a policy or plan 
                        of insurance for the 2008 crop year at 
                        a level of coverage not to exceed 70 
                        percent or more of the recorded or 
                        appraised average yield indemnified at 
                        100 percent of the expected market 
                        price, or an equivalent coverage; and
                            ``(ii) in the case of each 
                        noninsurable commodity of the eligible 
                        producers on the farm, had filed the 
                        required paperwork, and paid the 
                        administrative fee by the applicable 
                        State filing deadline, for the 
                        noninsured crop assistance program for 
                        the 2008 crop year, except that in 
                        determining the level of coverage, the 
                        Secretary shall use 70 percent of the 
                        applicable yield.
                    ``(C) Equitable relief.--Except as provided 
                in subparagraph (D), eligible producers on a 
                farm that met the requirements of paragraph (1) 
                before the deadline described in paragraph 
                (4)(A) and are eligible to receive, a disaster 
                assistance payment under this section for a 
                production loss during the 2008 crop year shall 
                be eligible to receive an amount equal to the 
                greater of--
                            ``(i) the amount that would have 
                        been calculated under subparagraph (B) 
                        if the eligible producers on the farm 
                        had paid the appropriate fee under that 
                        subparagraph; or
                            ``(ii) the amount that would have 
                        been calculated under subparagraph (A) 
                        of subsection (b)(3) if--
                                    ``(I) in clause (i) of that 
                                subparagraph, `120 percent' is 
                                substituted for `115 percent'; 
                                and
                                    ``(II) in clause (ii) of 
                                that subparagraph, `125 
                                percent' is substituted for 
                                `120 percent'.
                    ``(D) Limitation.--For amounts made 
                available under this paragraph, the Secretary 
                may make such adjustments as are necessary to 
                ensure that no producer receives a payment 
                under this paragraph for an amount in excess of 
                the assistance received by a similarly situated 
                producer that had purchased the same or higher 
                level of crop insurance prior to the date of 
                enactment of this paragraph.
                    ``(E) Authority of the secretary.--The 
                Secretary may provide such additional 
                assistance as the Secretary considers 
                appropriate to provide equitable treatment for 
                eligible producers on a farm that suffered 
                production losses in the 2008 crop year that 
                result in multiyear production losses, as 
                determined by the Secretary.
                    ``(F) Lack of access.--Notwithstanding any 
                other provision of this section, the Secretary 
                may provide assistance under this section to 
                eligible producers on a farm that--
                            ``(i) suffered a production loss 
                        due to a natural cause during the 2008 
                        crop year; and
                            ``(ii) as determined by the 
                        Secretary--
                                    ``(I)(aa) except as 
                                provided in item (bb), lack 
                                access to a policy or plan of 
                                insurance under subtitle A; or
                                    ``(bb) do not qualify for a 
                                written agreement because 1 or 
                                more farming practices, which 
                                the Secretary has determined 
                                are good farming practices, of 
                                the eligible producers on the 
                                farm differ significantly from 
                                the farming practices used by 
                                producers of the same crop in 
                                other regions of the United 
                                States; and
                                    ``(II) are not eligible for 
                                the noninsured crop disaster 
                                assistance program established 
                                by section 196 of the Federal 
                                Agriculture Improvement and 
                                Reform Act of 1996 (7 U.S.C. 
                                7333).''.
    (b) Trade Act of 1974.--Section 901(g) of the Trade Act of 
1974 (19 U.S.C. 2497(g)) is amended by adding at the end the 
following:
            ``(7) 2008 transition assistance.--
                    ``(A) In general.--Eligible producers on a 
                farm described in subparagraph (A) of paragraph 
                (4) that failed to timely pay the appropriate 
                fee described in that subparagraph shall be 
                eligible for assistance under this section in 
                accordance with subparagraph (B) if the 
                eligible producers on the farm--
                            ``(i) pay the appropriate fee 
                        described in paragraph (4)(A) not later 
                        than 90 days after the date of 
                        enactment of this paragraph; and
                            ``(ii)(I) in the case of each 
                        insurable commodity of the eligible 
                        producers on the farm, excluding 
                        grazing land, agree to obtain a policy 
                        or plan of insurance under the Federal 
                        Crop Insurance Act (7 U.S.C. 1501 et 
                        seq.) (excluding a crop insurance pilot 
                        program under that Act) for the next 
                        insurance year for which crop insurance 
                        is available to the eligible producers 
                        on the farm at a level of coverage 
                        equal to 70 percent or more of the 
                        recorded or appraised average yield 
                        indemnified at 100 percent of the 
                        expected market price, or an equivalent 
                        coverage; and
                            ``(II) in the case of each 
                        noninsurable commodity of the eligible 
                        producers on the farm, agree to file 
                        the required paperwork, and pay the 
                        administrative fee by the applicable 
                        State filing deadline, for the 
                        noninsured crop assistance program for 
                        the next year for which a policy is 
                        available.
                    ``(B) Amount of assistance.--Eligible 
                producers on a farm that meet the requirements 
                of subparagraph (A) shall be eligible to 
                receive assistance under this section as if the 
                eligible producers on the farm--
                            ``(i) in the case of each insurable 
                        commodity of the eligible producers on 
                        the farm, had obtained a policy or plan 
                        of insurance for the 2008 crop year at 
                        a level of coverage not to exceed 70 
                        percent or more of the recorded or 
                        appraised average yield indemnified at 
                        100 percent of the expected market 
                        price, or an equivalent coverage; and
                            ``(ii) in the case of each 
                        noninsurable commodity of the eligible 
                        producers on the farm, had filed the 
                        required paperwork, and paid the 
                        administrative fee by the applicable 
                        State filing deadline, for the 
                        noninsured crop assistance program for 
                        the 2008 crop year, except that in 
                        determining the level of coverage, the 
                        Secretary shall use 70 percent of the 
                        applicable yield.
                    ``(C) Equitable relief.--Except as provided 
                in subparagraph (D), eligible producers on a 
                farm that met the requirements of paragraph (1) 
                before the deadline described in paragraph 
                (4)(A) and are eligible to receive, a disaster 
                assistance payment under this section for a 
                production loss during the 2008 crop year shall 
                be eligible to receive an amount equal to the 
                greater of--
                            ``(i) the amount that would have 
                        been calculated under subparagraph (B) 
                        if the eligible producers on the farm 
                        had paid the appropriate fee under that 
                        subparagraph; or
                            ``(ii) the amount that would have 
                        been calculated under subparagraph (A) 
                        of subsection (b)(3) if--
                                    ``(I) in clause (i) of that 
                                subparagraph, `120 percent' is 
                                substituted for `115 percent'; 
                                and
                                    ``(II) in clause (ii) of 
                                that subparagraph, `125 
                                percent' is substituted for 
                                `120 percent'.
                    ``(D) Limitation.--For amounts made 
                available under this paragraph, the Secretary 
                may make such adjustments as are necessary to 
                ensure that no producer receives a payment 
                under this paragraph for an amount in excess of 
                the assistance received by a similarly situated 
                producer that had purchased the same or higher 
                level of crop insurance prior to the date of 
                enactment of this paragraph.
                    ``(E) Authority of the secretary.--The 
                Secretary may provide such additional 
                assistance as the Secretary considers 
                appropriate to provide equitable treatment for 
                eligible producers on a farm that suffered 
                production losses in the 2008 crop year that 
                result in multiyear production losses, as 
                determined by the Secretary.
                    ``(F) Lack of access.--Notwithstanding any 
                other provision of this section, the Secretary 
                may provide assistance under this section to 
                eligible producers on a farm that--
                            ``(i) suffered a production loss 
                        due to a natural cause during the 2008 
                        crop year; and
                            ``(ii) as determined by the 
                        Secretary--
                                    ``(I)(aa) except as 
                                provided in item (bb), lack 
                                access to a policy or plan of 
                                insurance under subtitle A; or
                                    ``(bb) do not qualify for a 
                                written agreement because 1 or 
                                more farming practices, which 
                                the Secretary has determined 
                                are good farming practices, of 
                                the eligible producers on the 
                                farm differ significantly from 
                                the farming practices used by 
                                producers of the same crop in 
                                other regions of the United 
                                States; and
                                    ``(II) are not eligible for 
                                the noninsured crop disaster 
                                assistance program established 
                                by section 196 of the Federal 
                                Agriculture Improvement and 
                                Reform Act of 1996 (7 U.S.C. 
                                7333).''.
    (c) Farm Operating Loans.--
            (1) In general.--For the principal amount of direct 
        farm operating loans under section 311 of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1941), $173,367,000.
            (2) Direct farm operating loans.--For the cost of 
        direct farm operating loans, including the cost of 
        modifying loans, as defined in section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a), 
        $20,440,000.
    (d) 2008 Aquaculture Assistance.--
            (1) Definitions.--In this subsection:
                    (A) Eligible aquaculture producer.--The 
                term ``eligible aquaculture producer'' means an 
                aquaculture producer that during the 2008 
                calendar year, as determined by the Secretary--
                            (i) produced an aquaculture species 
                        for which feed costs represented a 
                        substantial percentage of the input 
                        costs of the aquaculture operation; and
                            (ii) experienced a substantial 
                        price increase of feed costs above the 
                        previous 5-year average.
                    (B) Secretary.--The term ``Secretary'' 
                means the Secretary of Agriculture.
            (2) Grant program.--
                    (A) In general.--Of the funds of the 
                Commodity Credit Corporation, the Secretary 
                shall use not more than $50,000,000, to remain 
                available until September 30, 2010, to carry 
                out a program of grants to States to assist 
                eligible aquaculture producers for losses 
                associated with high feed input costs during 
                the 2008 calendar year.
                    (B) Notification.--Not later than 60 days 
                after the date of enactment of this Act, the 
                Secretary shall notify the State department of 
                agriculture (or similar entity) in each State 
                of the availability of funds to assist eligible 
                aquaculture producers, including such terms as 
                determined by the Secretary to be necessary for 
                the equitable treatment of eligible aquaculture 
                producers.
                    (C) Provision of grants.--
                            (i) In general.--The Secretary 
                        shall make grants to States under this 
                        subsection on a pro rata basis based on 
                        the amount of aquaculture feed used in 
                        each State during the 2007 calendar 
                        year, as determined by the Secretary.
                            (ii) Timing.--Not later than 120 
                        days after the date of enactment of 
                        this Act, the Secretary shall make 
                        grants to States to provide assistance 
                        under this subsection.
                    (D) Requirements.--The Secretary shall make 
                grants under this subsection only to States 
                that demonstrate to the satisfaction of the 
                Secretary that the State will--
                            (i) use grant funds to assist 
                        eligible aquaculture producers;
                            (ii) provide assistance to eligible 
                        aquaculture producers not later than 60 
                        days after the date on which the State 
                        receives grant funds; and
                            (iii) not later than 30 days after 
                        the date on which the State provides 
                        assistance to eligible aquaculture 
                        producers, submit to the Secretary a 
                        report that describes--
                                    (I) the manner in which the 
                                State provided assistance;
                                    (II) the amounts of 
                                assistance provided per species 
                                of aquaculture; and
                                    (III) the process by which 
                                the State determined the levels 
                                of assistance to eligible 
                                aquaculture producers.
            (3) Reduction in payments.--An eligible aquaculture 
        producer that receives assistance under this subsection 
        shall not be eligible to receive any other assistance 
        under the supplemental agricultural disaster assistance 
        program established under section 531 of the Federal 
        Crop Insurance Act (7 U.S.C. 1531) and section 901 of 
        the Trade Act of 1974 (19 U.S.C. 2497) for any losses 
        in 2008 relating to the same species of aquaculture.
            (4) Report to congress.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary 
        shall submit to the appropriate committees of Congress 
        a report that--
                    (A) describes in detail the manner in which 
                this subsection has been carried out; and
                    (B) includes the information reported to 
                the Secretary under paragraph (2)(D)(iii).
    Sec. 103. For fiscal years 2009 and 2010, in the case of 
each program established or amended by the Food, Conservation, 
and Energy Act of 2008 (Public Law 110-246), other than by 
title I of such Act, that is authorized or required to be 
carried out using funds of the Commodity Credit Corporation--
            (1) such funds shall be available for the purpose 
        of covering salaries and related administrative 
        expenses, including technical assistance, associated 
        with the implementation of the program, without regard 
        to the limitation on the total amount of allotments and 
        fund transfers contained in section 11 of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714i); and
            (2) the use of such funds for such purpose shall 
        not be considered to be a fund transfer or allotment 
        for purposes of applying the limitation on the total 
        amount of allotments and fund transfers contained in 
        such section.
    Sec. 104. In addition to other available funds, of the 
funds made available to the Rural Development mission area in 
this title, not more than 3 percent of the funds can be used 
for administrative costs to carry out loan, loan guarantee and 
grant activities funded in this title, which shall be 
transferred to and merged with the appropriation for ``Rural 
Development, Salaries and Expenses'': Provided, That of this 
amount $1,750,000 shall be committed to agency projects 
associated with maintaining the compliance, safety, and 
soundness of the portfolio of loans guaranteed through the 
section 502 guaranteed loan program.
    Sec. 105. Of the amounts appropriated in this title to the 
``Rural Housing Service, Rural Community Facilities Program 
Account'', the ``Rural Business-Cooperative Service, Rural 
Business Program Account'', and the ``Rural Utilities Service, 
Rural Water and Waste Disposal Program Account'', at least 10 
percent shall be allocated for assistance in persistent poverty 
counties: Provided, That for the purposes of this section, the 
term ``persistent poverty counties'' means any county that has 
had 20 percent or more of its population living in poverty over 
the past 30 years, as measured by the 1980, 1990, and 2000 
decennial censuses.

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

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration

                economic development assistance programs

    For an additional amount for ``Economic Development 
Assistance Programs'', $150,000,000: Provided, That $50,000,000 
shall be for economic adjustment assistance as authorized by 
section 209 of the Public Works and Economic Development Act of 
1965, as amended (42 U.S.C. 3149): Provided further, That in 
allocating the funds provided in the previous proviso, the 
Secretary of Commerce shall give priority consideration to 
areas of the Nation that have experienced sudden and severe 
economic dislocation and job loss due to corporate 
restructuring: Provided further, That not to exceed 2 percent 
of the funds provided under this heading may be transferred to 
and merged with the appropriation for ``Salaries and Expenses'' 
for purposes of program administration and oversight: Provided 
further, That up to $50,000,000 of the funds provided under 
this heading may be transferred to federally authorized 
regional economic development commissions.

                          Bureau of the Census

                     periodic censuses and programs

    For an additional amount for ``Periodic Censuses and 
Programs'', $1,000,000,000.

       National Telecommunications and Information Administration

               broadband technology opportunities program

    For an amount for ``Broadband Technology Opportunities 
Program'', $4,700,000,000: Provided, That of the funds provided 
under this heading, not less than $4,350,000,000 shall be 
expended pursuant to division B of this Act, of which: not less 
than $200,000,000 shall be available for competitive grants for 
expanding public computer center capacity, including at 
community colleges and public libraries; not less than 
$250,000,000 shall be available for competitive grants for 
innovative programs to encourage sustainable adoption of 
broadband service; and $10,000,000 shall be transferred to 
``Department of Commerce, Office of Inspector General'' for the 
purposes of audits and oversight of funds provided under this 
heading and such funds shall remain available until expended: 
Provided further, That of the funds provided under this 
heading, up to $350,000,000 may be expended pursuant to Public 
Law 110-385 (47 U.S.C. 1301 note) and for the purposes of 
developing and maintaining a broadband inventory map pursuant 
to division B of this Act: Provided further, That of the funds 
provided under this heading, amounts deemed necessary and 
appropriate by the Secretary of Commerce, in consultation with 
the Federal Communications Commission (FCC), may be transferred 
to the FCC for the purposes of developing a national broadband 
plan or for carrying out any other FCC responsibilities 
pursuant to division B of this Act, and only if the Committees 
on Appropriations of the House and the Senate are notified not 
less than 15 days in advance of the transfer of such funds: 
Provided further, That not more than 3 percent of funds 
provided under this heading may be used for administrative 
costs, and this limitation shall apply to funds which may be 
transferred to the FCC.

                digital-to-analog converter box program

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

             National Institute of Standards and Technology

             scientific and technical research and services

     For an additional amount for ``Scientific and Technical 
Research and Services'', $220,000,000.

                  construction of research facilities

    For an additional amount for ``Construction of Research 
Facilities'', $360,000,000, of which $180,000,000 shall be for 
a competitive construction grant program for research science 
buildings.

            National Oceanic and Atmospheric Administration

                  operations, research, and facilities

    For an additional amount for ``Operations, Research, and 
Facilities'', $230,000,000.

               procurement, acquisition and construction

    For an additional amount for ``Procurement, Acquisition and 
Construction'', $600,000,000.

                      Office of Inspector General

    For an additional amount for ``Office of Inspector 
General'', $6,000,000, to remain available until September 30, 
2013.

                         DEPARTMENT OF JUSTICE

                         General Administration

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'', $2,000,000, to remain available until September 30, 
2013.

               State and Local Law Enforcement Activities

                    Office on Violence Against Women

       violence against women prevention and prosecution programs

    For an additional amount for ``Violence Against Women 
Prevention and Prosecution Programs'', $225,000,000 for grants 
to combat violence against women, as authorized by part T of 
the Omnibus Crime Control and Safe Streets Act of 1968 (42 
U.S.C. 3796gg et seq.): Provided, That, $50,000,000 shall be 
for transitional housing assistance grants for victims of 
domestic violence, stalking or sexual assault as authorized by 
section 40299 of the Violent Crime Control and Law Enforcement 
Act of 1994 (Public Law 103-322).

                       Office of Justice Programs

               state and local law enforcement assistance

    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $2,000,000,000, for the Edward Byrne 
Memorial Justice Assistance Grant program as authorized by 
subpart 1 of part E of title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 (``1968 Act''), (except that section 
1001(c), and the special rules for Puerto Rico under section 
505(g), of the 1968 Act, shall not apply for purposes of this 
Act).
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $225,000,000, for competitive grants 
to improve the functioning of the criminal justice system, to 
assist victims of crime (other than compensation), and youth 
mentoring grants.
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $40,000,000, for competitive grants 
to provide assistance and equipment to local law enforcement 
along the Southern border and in High-Intensity Drug 
Trafficking Areas to combat criminal narcotics activity 
stemming from the Southern border, of which $10,000,000 shall 
be transferred to ``Bureau of Alcohol, Tobacco, Firearms and 
Explosives, Salaries and Expenses'' for the ATF Project 
Gunrunner.
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $225,000,000, for assistance to 
Indian tribes, notwithstanding Public Law 108-199, division B, 
title I, section 112(a)(1) (118 Stat. 62), which shall be 
available for grants under section 20109 of subtitle A of title 
II of the Violent Crime Control and Law Enforcement Act of 1994 
(Public Law 103-322).
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $100,000,000, to be distributed by 
the Office for Victims of Crime in accordance with section 
1402(d)(4) of the Victims of Crime Act of 1984 (Public Law 98-
473).
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $125,000,000, for assistance to law 
enforcement in rural States and rural areas, to prevent and 
combat crime, especially drug-related crime.
    For an additional amount for ``State and Local Law 
Enforcement Assistance'', $50,000,000, for Internet Crimes 
Against Children (ICAC) initiatives.

                  Community Oriented Policing Services

    For an additional amount for ``Community Oriented Policing 
Services'', for grants under section 1701 of title I of the 
1968 Omnibus Crime Control and Safe Streets Act (42 U.S.C. 
3796dd) for hiring and rehiring of additional career law 
enforcement officers under part Q of such title, 
notwithstanding subsection (i) of such section, $1,000,000,000.

                         Salaries and Expenses

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

                                SCIENCE

             National Aeronautics and Space Administration

                                science

    For an additional amount for ``Science'', $400,000,000.

                              aeronautics

     For an additional amount for ``Aeronautics'', 
$150,000,000.

                              exploration

    For an additional amount for ``Exploration'', $400,000,000.

                          cross agency support

    For an additional amount for ``Cross Agency Support'', 
$50,000,000.

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'', $2,000,000, to remain available until September 30, 
2013.

                      National Science Foundation

                    research and related activities

     For an additional amount for ``Research and Related 
Activities'', $2,500,000,000: Provided, That $300,000,000 shall 
be available solely for the Major Research Instrumentation 
program and $200,000,000 shall be for activities authorized by 
title II of Public Law 100-570 for academic research facilities 
modernization.

                     education and human resources

     For an additional amount for ``Education and Human 
Resources'', $100,000,000.

          major research equipment and facilities construction

    For an additional amount for ``Major Research Equipment and 
Facilities Construction'', $400,000,000.

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'', $2,000,000, to remain available until September 30, 
2013.

                     GENERAL PROVISION--THIS TITLE

    Sec. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime 
Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 
3796dd-3(c)) shall not apply with respect to funds appropriated 
in this or any other Act making appropriations for fiscal year 
2009 or 2010 for Community Oriented Policing Services 
authorized under part Q of such Act of 1968.

                    TITLE III--DEPARTMENT OF DEFENSE

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

    For an additional amount for ``Operation and Maintenance, 
Army'', $1,474,525,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real 
property to include barracks, and invest in the energy 
efficiency of Department of Defense facilities.

                    Operation and Maintenance, Navy

    For an additional amount for ``Operation and Maintenance, 
Navy'', $657,051,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to 
include barracks, and invest in the energy efficiency of 
Department of Defense facilities.

                Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, 
Marine Corps'', $113,865,000, to remain available for 
obligation until September 30, 2010, to improve, repair and 
modernize Department of Defense facilities, restore and 
modernize real property to include barracks, and invest in the 
energy efficiency of Department of Defense facilities.

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, 
Air Force'', $1,095,959,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real 
property to include barracks, and invest in the energy 
efficiency of Department of Defense facilities.

                Operation and Maintenance, Army Reserve

    For an additional amount for ``Operation and Maintenance, 
Army Reserve'', $98,269,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real 
property to include barracks, and invest in the energy 
efficiency of Department of Defense facilities.

                Operation and Maintenance, Navy Reserve

    For an additional amount for ``Operation and Maintenance, 
Navy Reserve'', $55,083,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real 
property to include barracks, and invest in the energy 
efficiency of Department of Defense facilities.

            Operation and Maintenance, Marine Corps Reserve

    For an additional amount for ``Operation and Maintenance, 
Marine Corps Reserve'', $39,909,000, to remain available for 
obligation until September 30, 2010, to improve, repair and 
modernize Department of Defense facilities, restore and 
modernize real property to include barracks, and invest in the 
energy efficiency of Department of Defense facilities.

              Operation and Maintenance, Air Force Reserve

    For an additional amount for ``Operation and Maintenance, 
Air Force Reserve'', $13,187,000, to remain available for 
obligation until September 30, 2010, to improve, repair and 
modernize Department of Defense facilities, restore and 
modernize real property to include barracks, and invest in the 
energy efficiency of Department of Defense facilities.

             Operation and Maintenance, Army National Guard

    For an additional amount for ``Operation and Maintenance, 
Army National Guard'', $266,304,000, to remain available for 
obligation until September 30, 2010, to improve, repair and 
modernize Department of Defense facilities, restore and 
modernize real property to include barracks, and invest in the 
energy efficiency of Department of Defense facilities.

             Operation and Maintenance, Air National Guard

    For an additional amount for ``Operation and Maintenance, 
Air National Guard'', $25,848,000, to remain available for 
obligation until September 30, 2010, to improve, repair and 
modernize Department of Defense facilities, restore and 
modernize real property to include barracks, and invest in the 
energy efficiency of Department of Defense facilities.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For an additional amount for ``Research, Development, Test 
and Evaluation, Army'', $75,000,000, to remain available for 
obligation until September 30, 2010.

            Research, Development, Test and Evaluation, Navy

    For an additional amount for ``Research, Development, Test 
and Evaluation, Navy'', $75,000,000, to remain available for 
obligation until September 30, 2010.

         Research, Development, Test and Evaluation, Air Force

    For an additional amount for ``Research, Development, Test 
and Evaluation, Air Force'', $75,000,000, to remain available 
for obligation until September 30, 2010.

        Research, Development, Test and Evaluation, Defense-Wide

    For an additional amount for ``Research, Development, Test 
and Evaluation, Defense-Wide'', $75,000,000, to remain 
available for obligation until September 30, 2010.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$400,000,000 for operation and maintenance, to remain available 
for obligation until September 30, 2010, to improve, repair and 
modernize military medical facilities, and invest in the energy 
efficiency of military medical facilities.

                    Office of the Inspector General

    For an additional amount for ``Office of the Inspector 
General'', $15,000,000 for operation and maintenance, to remain 
available for obligation until September 30, 2011.

                 TITLE IV--ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         Department of the Army

                       Corps of Engineers--Civil

                             investigations

    For an additional amount for ``Investigations'', 
$25,000,000: Provided, That funds provided under this heading 
in this title shall only be used for programs, projects or 
activities that heretofore or hereafter receive funds provided 
in Acts making appropriations available for Energy and Water 
Development: Provided further, That funds provided under this 
heading in this title shall be used for programs, projects or 
activities or elements of programs, projects or activities that 
can be completed within the funds made available in that 
account and that will not require new budget authority to 
complete: Provided further, That for projects that are being 
completed with funds appropriated in this Act that would 
otherwise be expired for obligation, expired funds appropriated 
in this Act may be used to pay the cost of associated 
supervision, inspection, overhead, engineering and design on 
those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Army shall submit a 
quarterly report to the Committees on Appropriations of the 
House of Representatives and the Senate detailing the 
allocation, obligation and expenditures of these funds, 
beginning not later than 45 days after enactment of this Act: 
Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this 
heading.

                              construction

    For an additional amount for ``Construction'', 
$2,000,000,000: Provided, That not less than $200,000,000 of 
the funds provided shall be for water-related environmental 
infrastructure assistance: Provided further, That section 102 
of Public Law 109-103 (33 U.S.C. 2221) shall not apply to funds 
provided in this title: Provided further, That notwithstanding 
any other provision of law, funds provided in this paragraph 
shall not be cost shared with the Inland Waterways Trust Fund 
as authorized in Public Law 99-662: Provided further, That 
funds provided under this heading in this title shall only be 
used for programs, projects or activities that heretofore or 
hereafter receive funds provided in Acts making appropriations 
available for Energy and Water Development: Provided further, 
That funds provided under this heading in this title shall be 
used for programs, projects or activities or elements of 
programs, projects or activities that can be completed within 
the funds made available in that account and that will not 
require new budget authority to complete: Provided further, 
That the limitation concerning total project costs in section 
902 of the Water Resources Development Act of 1986, as amended 
(33 U.S.C. 2280), shall not apply during fiscal year 2009 to 
any project that received funds provided in this title: 
Provided further, That funds appropriated under this heading 
may be used by the Secretary of the Army, acting through the 
Chief of Engineers, to undertake work authorized to be carried 
out in accordance with section 14 of the Flood Control Act of 
1946 (33 U.S.C. 701r); section 205 of the Flood Control Act of 
1948 (33 U.S.C. 701s); section 206 of the Water Resources 
Development Act of 1996 (33 U.S.C. 2330); or section 1135 of 
the Water Resources Development Act of 1986 (33 U.S.C. 2309a), 
notwithstanding the program cost limitations set forth in those 
sections: Provided further, That for projects that are being 
completed with funds appropriated in this Act that would 
otherwise be expired for obligation, expired funds appropriated 
in this Act may be used to pay the cost of associated 
supervision, inspection, overhead, engineering and design on 
those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Army shall submit a 
quarterly report to the Committees on Appropriations of the 
House of Representatives and the Senate detailing the 
allocation, obligation and expenditures of these funds, 
beginning not later than 45 days after enactment of this Act: 
Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this 
heading.

                   mississippi river and tributaries

    For an additional amount for ``Mississippi River and 
Tributaries'', $375,000,000: Provided, That funds provided 
under this heading in this title shall only be used for 
programs, projects or activities that heretofore or hereafter 
receive funds provided in Acts making appropriations available 
for Energy and Water Development: Provided further, That funds 
provided under this heading in this title shall be used for 
programs, projects or activities or elements of programs, 
projects or activities that can be completed within the funds 
made available in that account and that will not require new 
budget authority to complete: Provided further, That the 
limitation concerning total project costs in section 902 of the 
Water Resources Development Act of 1986, as amended (33 U.S.C. 
2280), shall not apply during fiscal year 2009 to any project 
that received funds provided in this title: Provided further, 
That for projects that are being completed with funds 
appropriated in this Act that would otherwise be expired for 
obligation, expired funds appropriated in this Act may be used 
to pay the cost of associated supervision, inspection, overhead 
engineering, and design on those projects and on subsequent 
claims, if any: Provided further, That the Secretary of the 
Army shall submit a quarterly report to the Committees on 
Appropriations of the House of Representatives and the Senate 
detailing the allocation, obligation and expenditures of these 
funds, beginning not later than 45 days after enactment of this 
Act: Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this 
heading.

                       operation and maintenance

    For an additional amount for ``Operation and Maintenance'', 
$2,075,000,000: Provided, That funds provided under this 
heading in this title shall only be used for programs, projects 
or activities that heretofore or hereafter receive funds 
provided in Acts making appropriations available for Energy and 
Water Development: Provided further, That funds provided under 
this heading in this title shall be used for programs, projects 
or activities or elements of programs, projects or activities 
that can be completed within the funds made available in that 
account and that will not require new budget authority to 
complete: Provided further, That section 9006 of Public Law 
110-114 shall not apply to funds provided in this title: 
Provided further, That for projects that are being completed 
with funds appropriated in this Act that would otherwise be 
expired for obligation, expired funds appropriated in this Act 
may be used to pay the cost of associated supervision, 
inspection, overhead, engineering and design on those projects 
and on subsequent claims, if any: Provided further, That the 
Secretary of the Army shall submit a quarterly 
report to the Committees on Appropriations of the House of 
Representatives and the Senate detailing the allocation, 
obligation and expenditures of these funds, beginning not later 
than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading.

                           regulatory program

    For an additional amount for ``Regulatory Program'', 
$25,000,000.

            formerly utilized sites remedial action program

    For an additional amount for ``Formerly Utilized Sites 
Remedial Action Program'', $100,000,000: Provided, That funds 
provided under this heading in this title shall be used for 
programs, projects or activities or elements of programs, 
projects or activities that can be completed within the funds 
made available in that account and that will not require new 
budget authority to complete: Provided further, That for 
projects that are being completed with funds appropriated in 
this Act that would otherwise be expired for obligation, 
expired funds appropriated in this Act may be used to pay the 
cost of associated supervision, inspection, overhead, 
engineering and design on those projects and on subsequent 
claims, if any: Provided further, That the Secretary of the 
Army shall submit a quarterly 
report to the Committees on Appropriations of the House of 
Representatives and the Senate detailing the allocation, 
obligation and expenditures of these funds, beginning not later 
than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation

                      water and related resources

    For an additional amount for ``Water and Related 
Resources'', $1,000,000,000: Provided, That of the amount 
appropriated under this heading, not less than $126,000,000 
shall be used for water reclamation and reuse projects 
authorized under title XVI of Public Law 102-575: Provided 
further, That funds provided in this Act shall be used for 
elements of projects, programs or activities that can be 
completed within these funding amounts and not create budgetary 
obligations in future fiscal years: Provided further, That 
$50,000,000 of the funds provided under this heading may be 
transferred to the Department of the Interior for programs, 
projects and activities authorized by the Central Utah Project 
Completion Act (titles II-V of Public Law 102-575): Provided 
further, That $50,000,000 of the funds provided under this 
heading may be used for programs, projects, and activities 
authorized by the California Bay-Delta Restoration Act (Public 
Law 108-361): Provided further, That not less than $60,000,000 
of the funds provided under this heading shall be used for 
rural water projects and shall be expended primarily on water 
intake and treatment facilities of such projects: Provided 
further, That not less than $10,000,000 of the funds provided 
under this heading shall be used for a bureau-wide inspection 
of canals program in urbanized areas: Provided further, That 
the costs of extraordinary maintenance and replacement 
activities carried out with funds provided in this Act shall be 
repaid pursuant to existing authority, except the length of 
repayment period shall be as determined by the Commissioner, 
but in no case shall the repayment period exceed 50 years and 
the repayment shall include interest, at a rate determined by 
the Secretary of the Treasury as of the beginning of the fiscal 
year in which the work is commenced, on the basis of average 
market yields on outstanding marketable obligations of the 
United States with the remaining periods of maturity comparable 
to the applicable reimbursement period of the project adjusted 
to the nearest one-eighth of 1 percent on the unamortized 
balance of any portion of the loan: Provided further, That for 
projects that are being completed with funds appropriated in 
this Act that would otherwise be expired for obligation, 
expired funds appropriated in this Act may be used to pay the 
cost of associated supervision, inspection, overhead, 
engineering and design on those projects and on subsequent 
claims, if any: Provided further, That the Secretary of the 
Interior shall submit a quarterly report to the Committees on 
Appropriations of the House of Representatives and the Senate 
detailing the allocation, obligation and expenditures of these 
funds, beginning not later than 45 days after enactment of this 
Act: Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this 
heading.

                          DEPARTMENT OF ENERGY

                            ENERGY PROGRAMS

                 Energy Efficiency and Renewable Energy

    For an additional amount for ``Energy Efficiency and 
Renewable Energy'', $16,800,000,000: Provided, That 
$3,200,000,000 shall be available for Energy Efficiency and 
Conservation Block Grants for implementation of programs 
authorized under subtitle E of title V of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17151 et 
seq.), of which $2,800,000,000 is available through the formula 
in subtitle E: Provided further, That the Secretary may use the 
most recent and accurate population data available to satisfy 
the requirements of section 543(b) of the Energy Independence 
and Security Act of 2007: Provided further, That the remaining 
$400,000,000 shall be awarded on a competitive basis: Provided 
further, That $5,000,000,000 shall be for the Weatherization 
Assistance Program under part A of title IV of the Energy 
Conservation and Production Act (42 U.S.C. 6861 et seq.): 
Provided further, That $3,100,000,000 shall be for the State 
Energy Program authorized under part D of title III of the 
Energy Policy and Conservation Act (42 U.S.C. 6321): Provided 
further, That $2,000,000,000 shall be available for grants for 
the manufacturing of advanced batteries and components and the 
Secretary shall provide facility funding awards under this 
section to manufacturers of advanced battery systems and 
vehicle batteries that are produced in the United States, 
including advanced lithium ion batteries, hybrid electrical 
systems, component manufacturers, and software designers: 
Provided further, That notwithstanding section 3304 of title 5, 
United States Code, and without regard to the provisions of 
sections 3309 through 3318 of such title 5, the Secretary of 
Energy, upon a determination that there is a severe shortage of 
candidates or a critical hiring need for particular positions, 
may from within the funds provided, recruit and directly 
appoint highly qualified individuals into the competitive 
service: Provided further, That such authority shall not apply 
to positions in the Excepted Service or the Senior Executive 
Service: Provided further, That any action authorized herein 
shall be consistent with the merit principles of section 2301 
of such title 5, and the Department shall comply with the 
public notice requirements of section 3327 of such title 5.

              Electricity Delivery and Energy Reliability

    For an additional amount for ``Electricity Delivery and 
Energy Reliability,'' $4,500,000,000: Provided, That funds 
shall be available for expenses necessary for electricity 
delivery and energy reliability activities to modernize the 
electric grid, to include demand responsive equipment, enhance 
security and reliability of the energy infrastructure, energy 
storage research, development, demonstration and deployment, 
and facilitate recovery from disruptions to the energy supply, 
and for implementation of programs authorized under title XIII 
of the Energy Independence and Security Act of 2007 (42 U.S.C. 
17381 et seq.): Provided further, That $100,000,000 shall be 
available for worker training activities: Provided further, 
That notwithstanding section 3304 of title 5, United States 
Code, and without regard to the provisions of sections 3309 
through 3318 of such title 5, the Secretary of Energy, upon a 
determination that there is a severe shortage of candidates or 
a critical hiring need for particular positions, may from 
within the funds provided, recruit and directly appoint highly 
qualified individuals into the competitive service: Provided 
further, That such authority shall not apply to positions in 
the Excepted Service or the Senior Executive Service: Provided 
further, That any action authorized herein shall be consistent 
with the merit principles of section 2301 of such title 5, and 
the Department shall comply with the public notice requirements 
of section 3327 of such title 5: Provided further, That for the 
purpose of facilitating the development of regional 
transmission plans, the Office of Electricity Delivery and 
Energy Reliability within the Department of Energy is provided 
$80,000,000 within the available funds to conduct a resource 
assessment and an analysis of future demand and transmission 
requirements after consultation with the Federal Energy 
Regulatory Commission: Provided further, That the Office of 
Electricity Delivery and Energy Reliability in coordination 
with the Federal Energy Regulatory Commission will provide 
technical assistance to the North American Electric Reliability 
Corporation, the regional reliability entities, the States, and 
other transmission owners and operators for the formation of 
interconnection-based transmission plans for the Eastern and 
Western Interconnections and ERCOT: Provided further, That such 
assistance may include modeling, support to regions and States 
for the development of coordinated State electricity policies, 
programs, laws, and regulations: Provided further, That 
$10,000,000 is provided to implement section 1305 of Public Law 
110-140: Provided further, That the Secretary of Energy may use 
or transfer amounts provided under this heading to carry out 
new authority for transmission improvements, if such authority 
is enacted in any subsequent Act, consistent with existing 
fiscal management practices and procedures.

                 Fossil Energy Research and Development

    For an additional amount for ``Fossil Energy Research and 
Development'', $3,400,000,000.

                   Non-Defense Environmental Cleanup

    For an additional amount for ``Non-Defense Environmental 
Cleanup'', $483,000,000.

      Uranium Enrichment Decontamination and Decommissioning Fund

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

                                Science

    For an additional amount for ``Science'', $1,600,000,000.

               Advanced Research Projects Agency--Energy

    For the Advanced Research Projects Agency--Energy, 
$400,000,000, as authorized under section 5012 of the America 
COMPETES Act (42 U.S.C. 16538).

         Title 17--Innovative Technology Loan Guarantee Program

    For an additional amount for the cost of guaranteed loans 
authorized by section 1705 of the Energy Policy Act of 2005, 
$6,000,000,000, available until expended, to pay the costs of 
guarantees made under this section: Provided, That of the 
amount provided for title XVII, $25,000,000 shall be used for 
administrative expenses in carrying out the guaranteed loan 
program: Provided further, That of the amounts provided for 
title XVII, $10,000,000 shall be transferred to and available 
for administrative expenses for the Advanced Technology 
Vehicles Manufacturing Loan Program.

                    Office of the Inspector General

    For necessary expenses of the Office of the Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, as amended, $15,000,000, to remain available until 
September 30, 2012.

               ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                     Defense Environmental Cleanup

    For an additional amount for ``Defense Environmental 
Cleanup,'' $5,127,000,000.

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

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

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 401. Bonneville Power Administration Borrowing 
Authority.--For the purposes of providing funds to assist in 
financing the construction, acquisition, and replacement of the 
transmission system of the Bonneville Power Administration and 
to implement the authority of the Administrator of the 
Bonneville Power Administration under the Pacific Northwest 
Electric Power Planning and Conservation Act (16 U.S.C. 839 et 
seq.), an additional $3,250,000,000 in borrowing authority is 
made available under the Federal Columbia River Transmission 
System Act (16 U.S.C. 838 et seq.), to remain outstanding at 
any time.
    Sec. 402. Western Area Power Administration Borrowing 
Authority.--The Hoover Power Plant Act of 1984 (Public Law 98-
381) is amended by adding at the end the following:

                    ``TITLE III--BORROWING AUTHORITY

``SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' 
        means the Administrator of the Western Area Power 
        Administration.
            ``(2) Secretary.--The term `Secretary' means the 
        Secretary of the Treasury.
    ``(b) Authority.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, subject to paragraphs (2) through 
        (5)--
                    ``(A) the Western Area Power Administration 
                may borrow funds from the Treasury; and
                    ``(B) the Secretary shall, without further 
                appropriation and without fiscal year 
                limitation, loan to the Western Area Power 
                Administration, on such terms as may be fixed 
                by the Administrator and the Secretary, such 
                sums (not to exceed, in the aggregate 
                (including deferred interest), $3,250,000,000 
                in outstanding repayable balances at any one 
                time) as, in the judgment of the Administrator, 
                are from time to time required for the purpose 
                of--
                            ``(i) constructing, financing, 
                        facilitating, planning, operating, 
                        maintaining, or studying construction 
                        of new or upgraded electric power 
                        transmission lines and related 
                        facilities with at least one terminus 
                        within the area served by the Western 
                        Area Power Administration; and
                            ``(ii) delivering or facilitating 
                        the delivery of power generated by 
                        renewable energy resources constructed 
                        or reasonably expected to be 
                        constructed after the date of enactment 
                        of this section.
            ``(2) Interest.--The rate of interest to be charged 
        in connection with any loan made pursuant to this 
        subsection shall be fixed by the Secretary, taking into 
        consideration market yields on outstanding marketable 
        obligations of the United States of comparable 
        maturities as of the date of the loan.
            ``(3) Refinancing.--The Western Area Power 
        Administration may refinance loans taken pursuant to 
        this section within the Treasury.
            ``(4) Participation.--The Administrator may permit 
        other entities to participate in the financing, 
        construction and ownership projects financed under this 
        section.
            ``(5) Congressional review of disbursement.--
        Effective upon the date of enactment of this section, 
        the Administrator shall have the authority to have 
        utilized $1,750,000,000 at any one time. If the 
        Administrator seeks to borrow funds above 
        $1,750,000,000, the funds will be disbursed unless 
        there is enacted, within 90 calendar days of the first 
        such request, a joint resolution that rescinds the 
        remainder of the balance of the borrowing authority 
        provided in this section.
    ``(c) Transmission Line and Related Facility Projects.--
            ``(1) In general.--For repayment purposes, each 
        transmission line and related facility project in which 
        the Western Area Power Administration participates 
        pursuant to this section shall be treated as separate 
        and distinct from--
                    ``(A) each other such project; and
                    ``(B) all other Western Area Power 
                Administration power and transmission 
                facilities.
            ``(2) Proceeds.--The Western Area Power 
        Administration shall apply the proceeds from the use of 
        the transmission capacity from an individual project 
        under this section to the repayment of the principal 
        and interest of the loan from the Treasury attributable 
        to that project, after reserving such funds as the 
        Western Area Power Administration determines are 
        necessary--
                    ``(A) to pay for any ancillary services 
                that are provided; and
                    ``(B) to meet the costs of operating and 
                maintaining the new project from which the 
                revenues are derived.
            ``(3) Source of revenue.--Revenue from the use of 
        projects under this section shall be the only source of 
        revenue for--
                    ``(A) repayment of the associated loan for 
                the project; and
                    ``(B) payment of expenses for ancillary 
                services and operation and maintenance.
            ``(4) Limitation on authority.--Nothing in this 
        section confers on the Administrator any additional 
        authority or obligation to provide ancillary services 
        to users of transmission facilities developed under 
        this section.
            ``(5) Treatment of certain revenues.--Revenue from 
        ancillary services provided by existing Federal power 
        systems to users of transmission projects funded 
        pursuant to this section shall be treated as revenue to 
        the existing power system that provided the ancillary 
        services.
    ``(d) Certification.--
            ``(1) In general.--For each project in which the 
        Western Area Power Administration participates pursuant 
        to this section, the Administrator shall certify, prior 
        to committing funds for any such project, that--
                    ``(A) the project is in the public 
                interest;
                    ``(B) the project will not adversely impact 
                system reliability or operations, or other 
                statutory obligations; and
                    ``(C) it is reasonable to expect that the 
                proceeds from the project shall be adequate to 
                make repayment of the loan.
            ``(2) Forgiveness of balances.--
                    ``(A) In general.--If, at the end of the 
                useful life of a project, there is a remaining 
                balance owed to the Treasury under this 
                section, the balance shall be forgiven.
                    ``(B) Unconstructed projects.--Funds 
                expended to study projects that are considered 
                pursuant to this section but that are not 
                constructed shall be forgiven.
                    ``(C) Notification.--The Administrator 
                shall notify the Secretary of such amounts as 
                are to be forgiven under this paragraph.
    ``(e) Public Processes.--
            ``(1) Policies and practices.--Prior to requesting 
        any loans under this section, the Administrator shall 
        use a public process to develop practices and policies 
        that implement the authority granted by this section.
            ``(2) Requests for interest.--In the course of 
        selecting potential projects to be funded under this 
        section, the Administrator shall seek Requests For 
        Interest from entities interested in identifying 
        potential projects through one or more notices 
        published in the Federal Register.''
    Sec. 403. Set-aside for Management and Oversight. Up to 0.5 
percent of each amount appropriated in this title may be used 
for the expenses of management and oversight of the programs, 
grants, and activities funded by such appropriation, and may be 
transferred by the head of the Federal department or agency 
involved to any other appropriate account within the department 
or agency for that purpose: Provided, That the Secretary will 
provide a report to the Committees on Appropriations of the 
House of Representatives and the Senate 30 days prior to the 
transfer: Provided further, That funds set aside under this 
section shall remain available for obligation until September 
30, 2012.
    Sec. 404. Technical Corrections to the Energy Independence 
and Security Act of 2007. (a) Section 543(a) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17153(a)) is 
amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively; and
            (2) by striking paragraph (1) and inserting the 
        following:
            ``(1) 34 percent to eligible units of local 
        government--alternative 1, in accordance with 
        subsection (b);
            ``(2) 34 percent to eligible units of local 
        government--alternative 2, in accordance with 
        subsection (b);''.
    (b) Section 543(b) of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17153(b)) is amended by striking 
``subsection (a)(1)'' and inserting ``subsection (a)(1) or 
(2)''.
    (c) Section 548(a)(1) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17158(a)(1)) is amending by 
striking ``; provided'' and all that follows through 
``541(3)(B)''.
    Sec. 405. Amendments to Title XIII of the Energy 
Independence and Security Act of 2007. Title XIII of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17381 and 
following) is amended as follows:
            (1) By amending subparagraph (A) of section 
        1304(b)(3) to read as follows:
                    ``(A) In general.--In carrying out the 
                initiative, the Secretary shall provide 
                financial support to smart grid demonstration 
                projects in urban, suburban, tribal, and rural 
                areas, including areas where electric system 
                assets are controlled by nonprofit entities and 
                areas where electric system assets are 
                controlled by investor-owned utilities.''.
            (2) By amending subparagraph (C) of section 
        1304(b)(3) to read as follows:
                    ``(C) Federal share of cost of technology 
                investments.--The Secretary shall provide to an 
                electric utility described in subparagraph (B) 
                or to other parties financial assistance for 
                use in paying an amount equal to not more than 
                50 percent of the cost of qualifying advanced 
                grid technology investments made by the 
                electric utility or other party to carry out a 
                demonstration project.''.
            (3) By inserting after section 1304(b)(3)(D) the 
        following new subparagraphs:
                    ``(E) Availability of data.--The Secretary 
                shall establish and maintain a smart grid 
                information clearinghouse in a timely manner 
                which will make data from smart grid 
                demonstration projects and other sources 
                available to the public. As a condition of 
                receiving financial assistance under this 
                subsection, a utility or other participant in a 
                smart grid demonstration project shall provide 
                such information as the Secretary may require 
                to become available through the smart grid 
                information clearinghouse in the form and 
                within the timeframes as directed by the 
                Secretary. The Secretary shall assure that 
                business proprietary information and individual 
                customer information is not included in the 
                information made available through the 
                clearinghouse.
                    ``(F) Open protocols and standards.--The 
                Secretary shall require as a condition of 
                receiving funding under this subsection that 
                demonstration projects utilize open protocols 
                and standards (including Internet-based 
                protocols and standards) if available and 
                appropriate.''.
            (4) By amending paragraph (2) of section 1304(c) to 
        read as follows:
            ``(2) to carry out subsection (b), such sums as may 
        be necessary.''.
            (5) By amending subsection (a) of section 1306 by 
        striking ``reimbursement of one-fifth (20 percent)'' 
        and inserting ``grants of up to one-half (50 
        percent)''.
            (6) By striking the last sentence of subsection 
        (b)(9) of section 1306.
            (7) By striking ``are eligible for'' in subsection 
        (c)(1) of section 1306 and inserting ``utilize''.
            (8) By amending subsection (e) of section 1306 to 
        read as follows:
    ``(e) Procedures and Rules.--(1) The Secretary shall, 
within 60 days after the enactment of the American Recovery and 
Reinvestment Act of 2009, by means of a notice of intent and 
subsequent solicitation of grant proposals--
            ``(A) establish procedures by which applicants can 
        obtain grants of not more than one-half of their 
        documented costs;
            ``(B) require as a condition of receiving funding 
        under this subsection that demonstration projects 
        utilize open protocols and standards (including 
        Internet-based protocols and standards) if available 
        and appropriate;
            ``(C) establish procedures to ensure that there is 
        no duplication or multiple payment for the same 
        investment or costs, that the grant goes to the party 
        making the actual expenditures for the qualifying Smart 
        Grid investments, and that the grants made have a 
        significant effect in encouraging and facilitating the 
        development of a smart grid;
            ``(D) establish procedures to ensure there will be 
        public records of grants made, recipients, and 
        qualifying Smart Grid investments which have received 
        grants; and
            ``(E) establish procedures to provide advance 
        payment of moneys up to the full amount of the grant 
        award.
    ``(2) The Secretary shall have discretion and exercise 
reasonable judgment to deny grants for investments that do not 
qualify.''.
    Sec. 406. Renewable Energy and Electric Power Transmission 
Loan Guarantee Program. (a) Amendment.--Title XVII of the 
Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended 
by adding the following at the end:

``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF RENEWABLE ENERGY 
                    AND ELECTRIC POWER TRANSMISSION PROJECTS.

    ``(a) In General.--Notwithstanding section 1703, the 
Secretary may make guarantees under this section only for the 
following categories of projects that commence construction not 
later than September 30, 2011:
            ``(1) Renewable energy systems, including 
        incremental hydropower, that generate electricity or 
        thermal energy, and facilities that manufacture related 
        components.
            ``(2) Electric power transmission systems, 
        including upgrading and reconductoring projects.
            ``(3) Leading edge biofuel projects that will use 
        technologies performing at the pilot or demonstration 
        scale that the Secretary determines are likely to 
        become commercial technologies and will produce 
        transportation fuels that substantially reduce life-
        cycle greenhouse gas emissions compared to other 
        transportation fuels.
    ``(b) Factors Relating to Electric Power Transmission 
Systems.--In determining to make guarantees to projects 
described in subsection (a)(2), the Secretary may consider the 
following factors:
            ``(1) The viability of the project without 
        guarantees.
            ``(2) The availability of other Federal and State 
        incentives.
            ``(3) The importance of the project in meeting 
        reliability needs.
            ``(4) The effect of the project in meeting a State 
        or region's environment (including climate change) and 
        energy goals.
    ``(c) Wage Rate Requirements.--The Secretary shall require 
that each recipient of support under this section provide 
reasonable assurance that all laborers and mechanics employed 
in the performance of the project for which the assistance is 
provided, including those employed by contractors or 
subcontractors, will be paid wages at rates not less than those 
prevailing on similar work in the locality as determined by the 
Secretary of Labor in accordance with subchapter IV of chapter 
31 of part A of subtitle II of title 40, United States Code 
(commonly referred to as the `Davis-Bacon Act').
    ``(d) Limitation.--Funding under this section for projects 
described in subsection (a)(3) shall not exceed $500,000,000.
    ``(e) Sunset.--The authority to enter into guarantees under 
this section shall expire on September 30, 2011.''.
    (b) Table of Contents Amendment.--The table of contents for 
the Energy Policy Act of 2005 is amended by inserting after the 
item relating to section 1704 the following new item:

``Sec. 1705. Temporary program for rapid deployment of renewable energy 
          and electric power transmission projects.''.

    Sec. 407. Weatherization Assistance Program Amendments. (a) 
Income Level.--Section 412(7) of the Energy Conservation and 
Production Act (42 U.S.C. 6862(7)) is amended by striking ``150 
percent'' both places it appears and inserting ``200 percent''.
    (b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) 
of the Energy Conservation and Production Act (42 U.S.C. 
6865(c)(1)) is amended by striking ``$2,500'' and inserting 
``$6,500''.
    (c) Effective Use of Funds.--In providing funds made 
available by this Act for the Weatherization Assistance 
Program, the Secretary may encourage States to give priority to 
using such funds for the most cost-effective efficiency 
activities, which may include insulation of attics, if, in the 
Secretary's view, such use of funds would increase the 
effectiveness of the program.
    (d) Training and Technical Assistance.--Section 416 of the 
Energy Conservation and Production Act (42 U.S.C. 6866) is 
amended by striking ``10 percent'' and inserting ``up to 20 
percent''.
    (e) Assistance for Previously Weatherized Dwelling Units.--
Section 415(c)(2) of the Energy Conservation and Production Act 
(42 U.S.C. 6865(c)(2)) is amended by striking ``September 30, 
1979'' and inserting ``September 30, 1994''.
    Sec. 408. Technical Corrections to Public Utility 
Regulatory Policies Act of 1978. (a) Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621(d)) is amended by redesignating paragraph (16) relating to 
consideration of smart grid investments (added by section 
1307(a) of Public Law 110-140) as paragraph (18) and by 
redesignating paragraph (17) relating to smart grid information 
(added by section 1308(a) of Public Law 110-140) as paragraph 
(19).
    (b) Subsections (b) and (d) of section 112 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) are 
each amended by striking ``(17) through (18)'' in each place it 
appears and inserting ``(16) through (19)''.
    Sec. 409. Renewable Electricity Transmission Study. In 
completing the 2009 National Electric Transmission Congestion 
Study, the Secretary of Energy shall include--
            (1) an analysis of the significant potential 
        sources of renewable energy that are constrained in 
        accessing appropriate market areas by lack of adequate 
        transmission capacity;
            (2) an analysis of the reasons for failure to 
        develop the adequate transmission capacity;
            (3) recommendations for achieving adequate 
        transmission capacity;
            (4) an analysis of the extent to which legal 
        challenges filed at the State and Federal level are 
        delaying the construction of transmission necessary to 
        access renewable energy; and
            (5) an explanation of assumptions and projections 
        made in the Study, including--
                    (A) assumptions and projections relating to 
                energy efficiency improvements in each load 
                center;
                    (B) assumptions and projections regarding 
                the location and type of projected new 
                generation capacity; and
                    (C) assumptions and projections regarding 
                projected deployment of distributed generation 
                infrastructure.
    Sec. 410. Additional State Energy Grants. (a) In General.--
Amounts appropriated under the heading ``Department of Energy--
Energy Programs--Energy Efficiency and Renewable Energy'' in 
this title shall be available to the Secretary of Energy for 
making additional grants under part D of title III of the 
Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.). 
The Secretary shall make grants under this section in excess of 
the base allocation established for a State under regulations 
issued pursuant to the authorization provided in section 365(f) 
of such Act only if the governor of the recipient State 
notifies the Secretary of Energy in writing that the governor 
has obtained necessary assurances that each of the following 
will occur:
            (1) The applicable State regulatory authority will 
        seek to implement, in appropriate proceedings for each 
        electric and gas utility, with respect to which the 
        State regulatory authority has ratemaking authority, a 
        general policy that ensures that utility financial 
        incentives are aligned with helping their customers use 
        energy more efficiently and that provide timely cost 
        recovery and a timely earnings opportunity for 
        utilities associated with cost-effective measurable and 
        verifiable efficiency savings, in a way that sustains 
        or enhances utility customers' incentives to use energy 
        more efficiently.
            (2) The State, or the applicable units of local 
        government that have authority to adopt building codes, 
        will implement the following:
                    (A) A building energy code (or codes) for 
                residential buildings that meets or exceeds the 
                most recently published International Energy 
                Conservation Code, or achieves equivalent or 
                greater energy savings.
                    (B) A building energy code (or codes) for 
                commercial buildings throughout the State that 
                meets or exceeds the ANSI/ASHRAE/IESNA Standard 
                90.1-2007, or achieves equivalent or greater 
                energy savings.
                    (C) A plan for the jurisdiction achieving 
                compliance with the building energy code or 
                codes described in subparagraphs (A) and (B) 
                within 8 years of the date of enactment of this 
                Act in at least 90 percent of new and renovated 
                residential and commercial building space. Such 
                plan shall include active training and 
                enforcement programs and measurement of the 
                rate of compliance each year.
            (3) The State will to the extent practicable 
        prioritize the grants toward funding energy efficiency 
        and renewable energy programs, including--
                    (A) the expansion of existing energy 
                efficiency programs approved by the State or 
                the appropriate regulatory authority, including 
                energy efficiency retrofits of buildings and 
                industrial facilities, that are funded--
                            (i) by the State; or
                            (ii) through rates under the 
                        oversight of the applicable regulatory 
                        authority, to the extent applicable;
                    (B) the expansion of existing programs, 
                approved by the State or the appropriate 
                regulatory authority, to support renewable 
                energy projects and deployment activities, 
                including programs operated by entities which 
                have the authority and capability to manage and 
                distribute grants, loans, performance 
                incentives, and other forms of financial 
                assistance; and
                    (C) cooperation and joint activities 
                between States to advance more efficient and 
                effective use of this funding to support the 
                priorities described in this paragraph.
    (b) State Match.--The State cost share requirement under 
the item relating to ``Department of Energy; Energy 
Conservation'' in title II of the Department of the Interior 
and Related Agencies Appropriations Act, 1985 (42 U.S.C. 6323a; 
98 Stat. 1861) shall not apply to assistance provided under 
this section.
    (c) Equipment and Materials for Energy Efficiency Measures 
and Renewable Energy Measures.--No limitation on the percentage 
of funding that may be used for the purchase and installation 
of equipment and materials for energy efficiency measures and 
renewable energy measures under grants provided under part D of 
title III of the Energy Policy and Conservation Act (42 U.S.C. 
6321 et seq.) shall apply to assistance provided under this 
section.

           TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                       DEPARTMENT OF THE TREASURY

           Treasury Inspector General for Tax Administration

                         SALARIES AND EXPENSES

    For an additional amount for necessary expenses of the 
Treasury Inspector General for Tax Administration in carrying 
out the Inspector General Act of 1978, $7,000,000, to remain 
available until September 30, 2013, for oversight and audits of 
the administration of the making work pay tax credit and 
economic recovery payments under the American Recovery and 
Reinvestment Act of 2009.

   Community Development Financial Institutions Fund Program Account

    For an additional amount for ``Community Development 
Financial Institutions Fund Program Account'', $100,000,000, to 
remain available until September 30, 2010, for qualified 
applicants under the fiscal year 2009 funding round of the 
Community Development Financial Institutions Program, of which 
up to $8,000,000 may be for financial assistance, technical 
assistance, training and outreach programs designed to benefit 
Native American, Native Hawaiian, and Alaskan Native 
communities and provided primarily through qualified community 
development lender organizations with experience and expertise 
in community development banking and lending in Indian country, 
Native American organizations, tribes and tribal organizations 
and other suitable providers and up to $2,000,000 may be used 
for administrative expenses: Provided, That for the purpose of 
the fiscal year 2009 funding round, the following statutory 
provisions are hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 
4707(d): Provided further, That no awardee, together with its 
subsidiaries and affiliates, may be awarded more than 5 percent 
of the aggregate funds available during fiscal year 2009 from 
the Community Development Financial Institutions Program: 
Provided further, That no later than 60 days after the date of 
enactment of this Act, the Department of the Treasury shall 
submit to the Committees on Appropriations of the House of 
Representatives and the Senate a detailed expenditure plan for 
funds provided under this heading.

                        Internal Revenue Service

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION

    For an additional amount to implement the health insurance 
tax credit under the TAA Health Coverage Improvement Act of 
2009, $80,000,000, to remain available until September 30, 
2010.

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities

                         FEDERAL BUILDINGS FUND

                 LIMITATIONS ON AVAILABILITY OF REVENUE

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount to be deposited in the Federal 
Buildings Fund, $5,550,000,000, to carry out the purposes of 
the Fund, of which not less than $750,000,000 shall be 
available for Federal buildings and United States courthouses, 
not less than $300,000,000 shall be available for border 
stations and land ports of entry, and not less than 
$4,500,000,000 shall be available for measures necessary to 
convert GSA facilities to High-Performance Green Buildings, as 
defined in section 401 of Public Law 110-140: Provided, That 
not to exceed $108,000,000 of the amounts provided under this 
heading may be expended for rental of space, related to leasing 
of temporary space in connection with projects funded under 
this heading: Provided further, That not to exceed $127,000,000 
of the amounts provided under this heading may be expended for 
building operations, for the administrative costs of completing 
projects funded under this heading: Provided further, That not 
to exceed $3,000,000 of the funds provided shall be for on-the-
job pre-apprenticeship and apprenticeship training programs 
registered with the Department of Labor, for the construction, 
repair, and alteration of Federal buildings: Provided further, 
That not less than $5,000,000,000 of the funds provided under 
this heading shall be obligated by September 30, 2010, and the 
remainder of the funds provided under this heading shall be 
obligated not later than September 30, 2011: Provided further, 
That the Administrator of General Services is authorized to 
initiate design, construction, repair, alteration, and other 
projects through existing authorities of the Administrator: 
Provided further, That the General Services Administration 
shall submit a detailed plan, by project, regarding the use of 
funds made available in this Act to the Committees on 
Appropriations of the House of Representatives and the Senate 
within 45 days of enactment of this Act, and shall provide 
notification to the Committees within 15 days prior to any 
changes regarding the use of these funds: Provided further, 
That, hereafter, the Administrator shall report to the 
Committees on the obligation of these funds on a quarterly 
basis beginning on June 30, 2009: Provided further, That of the 
amounts provided, $4,000,000 shall be transferred to and merged 
with ``Government-Wide Policy'', for the Office of Federal 
High-Performance Green Buildings as authorized in the Energy 
Independence and Security Act of 2007 (Public Law 110-140): 
Provided further, That amounts provided under this heading that 
are savings or cannot be used for the activity for which 
originally obligated may be deobligated and, notwithstanding 
any other provision of law, reobligated for the purposes 
identified in the plan required under this heading not less 
than 15 days after notification has been provided to the 
Committees on Appropriations of the House of Representatives 
and the Senate.

        Energy-Efficient Federal Motor Vehicle Fleet Procurement

    For capital expenditures and necessary expenses of 
acquiring motor vehicles with higher fuel economy, including: 
hybrid vehicles; electric vehicles; and commercially-available, 
plug-in hybrid vehicles, $300,000,000, to remain available 
until September 30, 2011: Provided, That none of these funds 
may be obligated until the Administrator of General Services 
submits to the Committees on Appropriations of the House of 
Representatives and the Senate, within 90 days after enactment 
of this Act, a plan for expenditure of the funds that details 
the current inventory of the Federal fleet owned by the General 
Services Administration, as well as other Federal agencies, and 
the strategy to expend these funds to replace a portion of the 
Federal fleet with the goal of substantially increasing energy 
efficiency over the current status, including increasing fuel 
efficiency and reducing emissions: Provided further, That, 
hereafter, the Administrator shall report to the Committees on 
the obligation of these funds on a quarterly basis beginning on 
September 30, 2009.

                      Office of Inspector General

    For an additional amount for the Office of the Inspector 
General, to remain available until September 30, 2013, for 
oversight and audit of programs, grants, and projects funded 
under this title, $7,000,000.

           RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

    For necessary expenses of the Recovery Act Accountability 
and Transparency Board to carry out the provisions of title XV 
of this Act, $84,000,000, to remain available until September 
30, 2011.

                     SMALL BUSINESS ADMINISTRATION

                         Salaries and Expenses

    For an additional amount, to remain available until 
September 30, 2010, $69,000,000, of which $24,000,000 is for 
marketing, management, and technical assistance under section 
7(m) of the Small Business Act (15 U.S.C. 636(m)(4)) by 
intermediaries that make microloans under the microloan 
program, and of which $20,000,000 is for improving, 
streamlining, and automating information technology systems 
related to lender processes and lender oversight: Provided, 
That no later than 60 days after the date of enactment of this 
Act, the Small Business Administration shall submit to the 
Committees on Appropriations of the House of Representatives 
and the Senate a detailed expenditure plan for funds provided 
under the heading ``Small Business Administration'' in this 
Act.

                      Office of Inspector General

    For an additional amount for the Office of Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, $10,000,000, to remain available until September 
30, 2013, for oversight and audit of programs, grants, and 
projects funded under this title.

                 Surety Bond Guarantees Revolving Fund

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

                     Business Loans Program Account

    For an additional amount for the cost of direct loans, 
$6,000,000, to remain available until September 30, 2010, and 
for an additional amount for the cost of guaranteed loans, 
$630,000,000, to remain available until September 30, 2010: 
Provided, That of the amount for the cost of guaranteed loans, 
$375,000,000 shall be for reimbursements, loan subsidies and 
loan modifications for loans to small business concerns 
authorized in section 501 of this title; and $255,000,000 shall 
be for loan subsidies and loan modifications for loans to small 
business concerns authorized in section 506 of this title: 
Provided further, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974.

        Administrative Provisions--Small Business Administration

    Sec. 501. Fee Reductions. (a) Administrative Provisions--
Small Business Administration.--Until September 30, 2010, and 
to the extent that the cost of such elimination or reduction of 
fees is offset by appropriations, with respect to each loan 
guaranteed under section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) and section 502 of this title, for which the 
application is approved on or after the date of enactment of 
this Act, the Administrator shall--
            (1) in lieu of the fee otherwise applicable under 
        section 7(a)(23)(A) of the Small Business Act (15 
        U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to 
        the maximum extent possible; and
            (2) in lieu of the fee otherwise applicable under 
        section 7(a)(18)(A) of the Small Business Act (15 
        U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to 
        the maximum extent possible.
    (b) Temporary Fee Elimination for the 504 Loan Program.--
            (1) In general.--Until September 30, 2010, and to 
        the extent the cost of such elimination in fees is 
        offset by appropriations, with respect to each project 
        or loan guaranteed by the Administrator pursuant to 
        title V of the Small Business Investment Act of 1958 
        (15 U.S.C. 695 et seq.) for which an application is 
        approved or pending approval on or after the date of 
        enactment of this Act--
                    (A) the Administrator shall, in lieu of the 
                fee otherwise applicable under section 
                503(d)(2) of the Small Business Investment Act 
                of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
                    (B) a development company shall, in lieu of 
                the processing fee under section 120.971(a)(1) 
                of title 13, Code of Federal Regulations 
                (relating to fees paid by borrowers), or any 
                successor thereto, collect no fee.
            (2) Reimbursement for waived fees.--
                    (A) In general.--To the extent that the 
                cost of such payments is offset by 
                appropriations, the Administrator shall 
                reimburse each development company that does 
                not collect a processing fee pursuant to 
                paragraph (1)(B).
                    (B) Amount.--The payment to a development 
                company under subparagraph (A) shall be in an 
                amount equal to 1.5 percent of the net 
                debenture proceeds for which the development 
                company does not collect a processing fee 
                pursuant to paragraph (1)(B).
    (c) Application of Fee Eliminations.--
            (1) To the extent that amounts are made available 
        to the Administrator for the purpose of fee 
        eliminations or reductions under subsection (a), the 
        Administrator shall--
                    (A) first use any amounts provided to 
                eliminate or reduce fees paid by small business 
                borrowers under clauses (i) through (iii) of 
                paragraph (18)(A), to the maximum extent 
                possible; and
                    (B) then use any amounts provided to 
                eliminate or reduce fees under paragraph 
                (23)(A) paid by small business lenders with 
                assets less than $1,000,000,000 as of the date 
                of enactment; and
                    (C) then use any remaining amounts 
                appropriated under this title to reduce fees 
                paid by small business lenders other than those 
                with assets less than $1,000,000,000.
            (2) The Administrator shall eliminate fees under 
        subsections (a) and (b) until the amount provided for 
        such purposes, as applicable, under the heading 
        ``Business Loans Program Account'' under the heading 
        ``Small Business Administration'' under this Act are 
        expended.
    Sec. 502. Economic Stimulus Lending Program for Small 
Businesses. (a) Purpose.--The purpose of this section is to 
permit the Small Business Administration to guarantee up to 90 
percent of qualifying small business loans made by eligible 
lenders.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) The term ``qualifying small business loan'' 
        means any loan to a small business concern pursuant to 
        section 7(a) of the Small Business Act (15 U.S.C. 636) 
        or title V of the Small Business Investment Act of 1958 
        (15 U.S.C. 695 and following) except for such loans 
        made under section 7(a)(31).
            (3) The term ``small business concern'' has the 
        same meaning as provided by section 3 of the Small 
        Business Act (15 U.S.C. 632).
    (c) Qualified Borrowers.--
            (1) Aliens unlawfully present in the united 
        states.--A loan guarantee may not be made under this 
        section for a loan made to a concern if an individual 
        who is an alien unlawfully present in the United 
        States--
                    (A) has an ownership interest in that 
                concern; or
                    (B) has an ownership interest in another 
                concern that itself has an ownership interest 
                in that concern.
            (2) Firms in violation of immigration laws.--No 
        loan guarantee may be made under this section for a 
        loan to any entity found, based on a determination by 
        the Secretary of Homeland Security or the Attorney 
        General to have engaged in a pattern or practice of 
        hiring, recruiting or referring for a fee, for 
        employment in the United States an alien knowing the 
        person is an unauthorized alien.
    (d) Criminal Background Checks.--Prior to the approval of 
any loan guarantee under this section, the Administrator may 
verify the applicant's criminal background, or lack thereof, 
through the best available means, including, if possible, use 
of the National Crime Information Center computer system at the 
Federal Bureau of Investigation.
    (e) Application of Other Law.--Nothing in this section 
shall be construed to exempt any activity of the Administrator 
under this section from the Federal Credit Reform Act of 1990 
(title V of the Congressional Budget and Impoundment Control 
Act of 1974; 2 U.S.C. 661 and following).
    (f) Sunset.--Loan guarantees may not be issued under this 
section after the date 12 months after the date of enactment of 
this Act.
    (g) Small Business Act Provisions.--The provisions of the 
Small Business Act applicable to loan guarantees under section 
7 of that Act and regulations promulgated thereunder as of the 
date of enactment of this Act shall apply to loan guarantees 
under this section except as otherwise provided in this 
section.
    (h) Authorization.--There are authorized to be appropriated 
such sums as may be necessary to carry out this section.
    Sec. 503. Establishment of SBA Secondary Market Guarantee 
Authority. (a) Purpose.--The purpose of this section is to 
provide the Administrator with the authority to establish the 
SBA Secondary Market Guarantee Authority within the SBA to 
provide a Federal guarantee for pools of first lien 504 loans 
that are to be sold to third-party investors.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) The term ``first lien position 504 loan'' means 
        the first mortgage position, non-federally guaranteed 
        loans made by private sector lenders made under title V 
        of the Small Business Investment Act.
    (c) Establishment of Authority.--
            (1) Organization.--
                    (A) The Administrator shall establish a 
                Secondary Market Guarantee Authority within the 
                Small Business Administration.
                    (B) The Administrator shall appoint a 
                Director of the Authority who shall report to 
                the Administrator.
                    (C) The Administrator is authorized to hire 
                such personnel as are necessary to operate the 
                Authority and may contract such operations of 
                the Authority as necessary to qualified third 
                party companies or individuals.
                    (D) The Administrator is authorized to 
                contract with private sector fiduciary and 
                custom dial agents as necessary to operate the 
                Authority.
            (2) Guarantee process.--
                    (A) The Administrator shall establish, by 
                rule, a process in which private sector 
                entities may apply to the Administration for a 
                Federal guarantee on pools of first lien 
                position 504 loans that are to be sold to 
                third-party investors.
                    (B) The Administrator is authorized to 
                contract with private sector fiduciary and 
                custom dial agents as necessary to operate the 
                Authority.
            (3) Responsibilities.--
                    (A) The Administrator shall establish, by 
                rule, a process in which private sector 
                entities may apply to the SBA for a Federal 
                guarantee on pools of first lien position 504 
                loans that are to be sold to third-party 
                investors.
                    (B) The rule under this section shall 
                provide for a process for the Administrator to 
                consider and make decisions regarding whether 
                to extend a Federal guarantee referred to in 
                clause (i). Such rule shall also provide that:
                            (i) The seller of the pools 
                        purchasing a guarantee under this 
                        section retains not less than 5 percent 
                        of the dollar amount of the pools to be 
                        sold to third-party investors.
                            (ii) The Administrator shall charge 
                        fees, upfront or annual, at a specified 
                        percentage of the loan amount that is 
                        at such a rate that the cost of the 
                        program under the Federal Credit Reform 
                        Act of 1990 (title V of the 
                        Congressional Budget and Impoundment 
                        Control Act of 1974; 2 U.S.C. 661) 
                        shall be equal to zero.
                            (iii) The Administrator may 
                        guarantee not more than $3,000,000,000 
                        of pools under this authority.
                    (C) The Administrator shall establish 
                documents, legal covenants, and other required 
                documentation to protect the interests of the 
                United States.
                    (D) The Administrator shall establish a 
                process to receive and disburse funds to 
                entities under the authority established in 
                this section.
    (d) Limitations.--
            (1) The Administrator shall ensure that entities 
        purchasing a guarantee under this section are using 
        such guarantee for the purpose of selling 504 first 
        lien position pools to third-party investors.
            (2) If the Administrator finds that any such 
        guarantee was used for a purpose other than that 
        specified in paragraph (1), the Administrator shall--
                    (A) prohibit the purchaser of the guarantee 
                or its affiliates (within the meaning of the 
                regulations under 13 CFR 121.103) from using 
                the authority of this section in the future; 
                and
                    (B) take any other actions the 
                Administrator, in consultation with the 
                Attorney General of the United States deems 
                appropriate.
    (e) Oversight.--The Administrator shall submit a report to 
Congress not later than the third business day of each month 
setting forth each of the following:
            (1) The aggregate amount of guarantees extended 
        under this section during the preceding month.
            (2) The aggregate amount of guarantees outstanding.
            (3) Defaults and payments on defaults made under 
        this section.
            (4) The identity of each purchaser of a guarantee 
        found by the Administrator to have misused guarantees 
        under this section.
            (5) Any other information the Administrator deems 
        necessary to fully inform Congress of undue risk to the 
        United States associated with the issuance of 
        guarantees under this section.
    (f) Duration of Program.--The authority of this section 
shall terminate on the date 2 years after the date of enactment 
of this section.
    (g) Funding.--Such sums as necessary are authorized to be 
appropriated to carry out the provisions of this section.
    (h) Budget Treatment.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under 
this section from the Federal Credit Reform Act of 1990 (title 
V of the Congressional Budget and Impoundment Control Act of 
1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.--The Administrator 
shall issue regulations under this section within 15 days after 
the date of enactment of this section. The notice requirements 
of section 553(b) of title 5, United States Code shall not 
apply to the promulgation of such regulations.
    Sec. 504. Stimulus for Community Development Lending. (a) 
Low Interest Refinancing Under the Local Development Business 
Loan Program.--Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended by adding at the end the 
following:
            ``(7) Permissible debt refinancing.--
                    ``(A) In general.--Any financing approved 
                under this title may include a limited amount 
                of debt refinancing.
                    ``(B) Expansions.--If the project involves 
                expansion of a small business concern, any 
                amount of existing indebtedness that does not 
                exceed 50 percent of the project cost of the 
                expansion may be refinanced and added to the 
                expansion cost, if--
                            ``(i) the proceeds of the 
                        indebtedness were used to acquire land, 
                        including a building situated thereon, 
                        to construct a building thereon, or to 
                        purchase equipment;
                            ``(ii) the existing indebtedness is 
                        collateralized by fixed assets;
                            ``(iii) the existing indebtedness 
                        was incurred for the benefit of the 
                        small business concern;
                            ``(iv) the financing under this 
                        title will be used only for refinancing 
                        existing indebtedness or costs relating 
                        to the project financed under this 
                        title;
                            ``(v) the financing under this 
                        title will provide a substantial 
                        benefit to the borrower when prepayment 
                        penalties, financing fees, and other 
                        financing costs are accounted for;
                            ``(vi) the borrower has been 
                        current on all payments due on the 
                        existing debt for not less than 1 year 
                        preceding the date of refinancing; and
                            ``(vii) the financing under section 
                        504 will provide better terms or rate 
                        of interest than the existing 
                        indebtedness at the time of 
                        refinancing.''.
    (b) Job Creation Goals.--Section 501(e)(1) and section 
501(e)(2) of the Small Business Investment Act (15 U.S.C. 695) 
are each amended by striking ``$50,000'' and inserting 
``$65,000''.
    Sec. 505. Increasing Small Business Investment. (a) 
Simplified Maximum Leverage Limits.--Section 303(b) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is 
amended as follows:
            (1) By striking so much of paragraph (2) as 
        precedes subparagraphs (C) and (D) and inserting the 
        following:
            ``(2) Maximum leverage.--
                    ``(A) In general.--The maximum amount of 
                outstanding leverage made available to any one 
                company licensed under section 301(c) of this 
                Act may not exceed the lesser of--
                            ``(i) 300 percent of such company's 
                        private capital; or
                            ``(ii) $150,000,000.
                    ``(B) Multiple licenses under common 
                control.--The maximum amount of outstanding 
                leverage made available to two or more 
                companies licensed under section 301(c) of this 
                Act that are commonly controlled (as determined 
                by the Administrator) and not under capital 
                impairment may not exceed $225,000,000.'';
            (2) By amending paragraph (2)(C) by inserting 
        ``(i)'' before ``In calculating'' and adding the 
        following at the end thereof:
                            ``(ii) The maximum amount of 
                        outstanding leverage made available 
                        to--
                                    ``(I) any 1 company 
                                described in clause (iii) may 
                                not exceed the lesser of 300 
                                percent of private capital of 
                                the company, or $175,000,000; 
                                and
                                    ``(II) 2 or more companies 
                                described in clause (iii) that 
                                are under common control (as 
                                determined by the 
                                Administrator) may not exceed 
                                $250,000,000.
                          ``(iii) A company described in this 
                        clause is a company licensed under 
                        section 301(c) in the first fiscal year 
                        after the date of enactment of this 
                        clause or any fiscal year thereafter 
                        that certifies in writing that not less 
                        than 50 percent of the dollar amount of 
                        investments of that company shall be 
                        made in companies that are located in a 
                        low-income geographic area (as that 
                        term is defined in section 351).''.
            (3) By striking paragraph (4).
    (b) Simplified Aggregate Investment Limitations.--Section 
306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 
686(a)) is amended to read as follows:
    ``(a) Percentage Limitation on Private Capital.--If any 
small business investment company has obtained financing from 
the Administrator and such financing remains outstanding, the 
aggregate amount of securities acquired and for which 
commitments may be issued by such company under the provisions 
of this title for any single enterprise shall not, without the 
approval of the Administrator, exceed 10 percent of the sum 
of--
            ``(1) the private capital of such company; and
            ``(2) the total amount of leverage projected by the 
        company in the company's business plan that was 
        approved by the Administrator at the time of the grant 
        of the company's license.''.
    (c) Investments in Smaller Enterprises.--Section 303(d) of 
the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is 
amended to read as follows:
    ``(d) Investments in Smaller Enterprises.--The 
Administrator shall require each licensee, as a condition of 
approval of an application for leverage, to certify in writing 
that not less than 25 percent of the aggregate dollar amount of 
financings of that licensee shall be provided to smaller 
enterprises.''.
    Sec. 506. Business Stabilization Program. (a) In General.--
Subject to the availability of appropriations, the 
Administrator of the Small Business Administration shall carry 
out a program to provide loans on a deferred basis to viable 
(as such term is determined pursuant to regulation by the 
Administrator of the Small Business Administration) small 
business concerns that have a qualifying small business loan 
and are experiencing immediate financial hardship.
    (b) Eligible Borrower.--A small business concern as defined 
under section 3 of the Small Business Act (15 U.S.C. 632).
    (c) Qualifying Small Business Loan.--A loan made to a small 
business concern that meets the eligibility standards in 
section 7(a) of the Small Business Act (15 U.S.C. 636(a)) but 
shall not include loans guarantees (or loan guarantee 
commitments made) by the Administrator prior to the date of 
enactment of this Act.
    (d) Loan Size.--Loans guaranteed under this section may not 
exceed $35,000.
    (e) Purpose.--Loans guaranteed under this program shall be 
used to make periodic payment of principal and interest, either 
in full or in part, on an existing qualifying small business 
loan for a period of time not to exceed 6 months.
    (f) Loan Terms.--Loans made under this section shall:
            (1) carry a 100 percent guaranty; and
            (2) have interest fully subsidized for the period 
        of repayment.
    (g) Repayment.--Repayment for loans made under this section 
shall--
            (1) be amortized over a period of time not to 
        exceed 5 years; and
            (2) not begin until 12 months after the final 
        disbursement of funds is made.
    (h) Collateral.--The Administrator of the Small Business 
Administration may accept any available collateral, including 
subordinated liens, to secure loans made under this section.
    (i) Fees.--The Administrator of the Small Business 
Administration is prohibited from charging any processing fees, 
origination fees, application fees, points, brokerage fees, 
bonus points, prepayment penalties, and other fees that could 
be charged to a loan applicant for loans under this section.
    (j) Sunset.--The Administrator of the Small Business 
Administration shall not issue loan guarantees under this 
section after September 30, 2010.
    (k) Emergency Rulemaking Authority.--The Administrator of 
the Small Business Administration shall issue regulations under 
this section within 15 days after the date of enactment of this 
section. The notice requirements of section 553(b) of title 5, 
United States Code shall not apply to the promulgation of such 
regulations.

SEC. 507. GAO REPORT.

      (a) Report.--Not later than 60 days after the enactment 
of this Act, the Comptroller General of the United States shall 
report to the Congress on the actions of the Administrator in 
implementing the authorities established in the administrative 
provisions of this title.
      (b) Included Item.--The report under this section shall 
include a summary of the activity of the Administrator under 
this title and an analysis of whether he is accomplishing the 
purpose of increasing liquidity in the secondary market for 
Small Business Administration loans.

SEC. 508. SURETY BONDS.

      (a) Maximum Bond Amount.--Section 4119(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 reimbursement, by fraud 
        or material misrepresentation,
            ``(2) the total contract amount at the time of 
        execution of the bond or bonds exceeds $5,000,000,
            ``(3) the surety has breached a material term or 
        condition of such guarantee agreement, or
            ``(4) the surety has substantially violated the 
        regulations promulgated by the Administration pursuant 
        to subsection (d).''.
            (2) by adding at the end the following:
      ``(k) For bonds made or executed with the prior approval 
of the Administration, the Administration shall not deny 
liability to a surety based upon material information that was 
provided as part of the guaranty application.''.
      (c) Size Standards.--Section 410 of the Small Business 
Investment Act of 1958 (15 U.S.C. 694a) is amended by adding at 
the end the following:
            ``(9) Notwithstanding any other provision of law or 
        any rule, regulation, or order of the Administration, 
        for purposes of sections 410, 411, and 412 the term 
        `small business concern' means a business concern that 
        meets the size standard for the primary industry in 
        which such business concern, and the affiliates of such 
        business concern, is engaged, as determined by the 
        Administrator in accordance with the North American 
        Industry Classification System.''.
      (d) Study.--The Administrator of the Small Business 
Administration shall conduct a study of the current funding 
structure of the surety bond program carried out under part B 
(15 U.S.C. 694a et seq.) of title IV of the Small Business 
Investment Act of 1958. The study shall include--
            (1) an assessment of whether the program's current 
        funding framework and program fees are inhibiting the 
        program's growth; and
            (2) an assessment of whether surety companies and 
        small business concerns could benefit from an 
        alternative funding structure.
      (e) Report.--Not later than 180 days after the date of 
the enactment of this Act, the Administrator shall submit to 
Congress a report on the results of the study required under 
subsection (d).
      (f) Sunset.--The amendments made by this section shall 
remain in effect until September 30, 2010.

SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

      (a) Purpose.--The purpose of this section is to provide 
the Small Business Administration with the authority to 
establish a Secondary Market Lending Authority within the SBA 
to make loans to the systemically important SBA secondary 
market broker-dealers who operate the SBA secondary market.
      (b) Definitions.--For purposes of this section:
            (1) The term `` Administrator'' means the 
        Administrator of the SBA.
            (2) The term ``SBA'' means the Small Business 
        Administration.
            (3) The terms ``Secondary Market Lending 
        Authority'' and ``Authority'' mean the office 
        established under subsection (c).
            (4) The term ``SBA secondary market'' means the 
        market for the purchase and sale of loans originated, 
        underwritten, and closed under the Small Business Act.
            (5) The term ``Systemically Important Secondary 
        Market Broker-Dealers'' mean those entities designated 
        under subsection (c)(1) as vital to the continued 
        operation of the SBA secondary market by reason of 
        their purchase and sale of the government guaranteed 
        portion of loans, or pools of loans, originated, 
        underwritten, and closed under the Small Business Act.
      (c) Responsibilities, Authorities, Organization, and 
Limitations.--
            (1) Designation of systemically important sba 
        secondary market broker-dealers.--The Administrator 
        shall establish a process to designate, in consultation 
        with the Board of Governors of the Federal Reserve and 
        the Secretary of the Treasury, Systemically Important 
        Secondary Market Broker-Dealers.
            (2) Establishment of sba secondary market lending 
        authority.--
                    (A) Organization.--
                            (i) The Administrator shall 
                        establish within the SBA an office to 
                        provide loans to Systemically Important 
                        Secondary Market Broker-dealers to be 
                        used for the purpose of financing the 
                        inventory of the government guaranteed 
                        portion of loans, originated, 
                        underwritten, and closed under the 
                        Small Business Act or pools of such 
                        loans.
                            (ii) The Administrator shall 
                        appoint a Director of the Authority who 
                        shall report to the Administrator.
                            (iii) The Administrator is 
                        authorized to hire such personnel as 
                        are necessary to operate the Authority.
                            (iv) The Administrator may contract 
                        such Authority operations as he 
                        determines necessary to qualified 
                        third-party companies or individuals.
                            (v) The Administrator is authorized 
                        to contract with private sector 
                        fiduciary and custodial agents as 
                        necessary to operate the Authority.
                    (B) Loans.--
                            (i) The Administrator shall 
                        establish by rule a process under which 
                        Systemically Important SBA Secondary 
                        Market Broker-Dealers designated under 
                        paragraph (1) may apply to the 
                        Administrator for loans under this 
                        section.
                            (ii) The rule under clause (i) 
                        shall provide a process for the 
                        Administrator to consider and make 
                        decisions regarding whether or not to 
                        extend a loan applied for under this 
                        section. Such rule shall include 
                        provisions to assure each of the 
                        following:
                                    (I) That loans made under 
                                this section are for the sole 
                                purpose of financing the 
                                inventory of the government 
                                guaranteed portion of loans, 
                                originated, underwritten, and 
                                closed under the Small Business 
                                Act or pools of such loans.
                                    (II) That loans made under 
                                this section are fully 
                                collateralized to the 
                                satisfaction of the 
                                Administrator.
                                    (III) That there is no 
                                limit to the frequency in which 
                                a borrower may borrow under 
                                this section unless the 
                                Administrator determines that 
                                doing so would create an undue 
                                risk of loss to the agency or 
                                the United States.
                                    (IV) That there is no limit 
                                on the size of a loan, subject 
                                to the discretion of the 
                                Administrator.
                            (iii) Interest on loans under this 
                        section shall not exceed the Federal 
                        Funds target rate as established by the 
                        Federal Reserve Board of Governors plus 
                        25 basis points.
                            (iv) The rule under this section 
                        shall provide for such loan documents, 
                        legal covenants, collateral 
                        requirements and other required 
                        documentation as necessary to protect 
                        the interests of the agency, the United 
                        States, and the taxpayer.
                            (v) The Administrator shall 
                        establish custodial accounts to 
                        safeguard any collateral pledged to the 
                        SBA in connection with a loan under 
                        this section.
                            (vi) The Administrator shall 
                        establish a process to disburse and 
                        receive funds to and from borrowers 
                        under this section.
                    (C) Limitations on use of loan proceeds by 
                systemically important secondary market broker-
                dealers.--The Administrator shall ensure that 
                borrowers under this section are using funds 
                provided under this section only for the 
                purpose specified in subparagraph (B)(ii)(I). 
                If the Administrator finds that such funds were 
                used for any other purpose, the Administrator 
                shall--
                            (i) require immediate repayment of 
                        outstanding loans;
                            (ii) prohibit the borrower, its 
                        affiliates, or any future corporate 
                        manifestation of the borrower from 
                        using the Authority; and
                            (iii) take any other actions the 
                        Administrator, in consultation with the 
                        Attorney General of the United States, 
                        deems appropriate.
        (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.
      (g) 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).
      (h) Emergency Rulemaking Authority.--The Administrator 
shall promulgate regulations under this section within 30 days 
after the date of enactment of this section. In promulgating 
these regulations, the notice requirements of section 553(b) of 
title 5 of the United States Code shall not apply.

               TITLE VI--DEPARTMENT OF HOMELAND SECURITY

              Office of the Under Secretary for Management

    For an additional amount for the ``Office of the Under 
Secretary for Management'', $200,000,000 for planning, design, 
construction costs, site security, information technology 
infrastructure, fixtures, and related costs to consolidate the 
Department of Homeland Security headquarters: Provided, That no 
later than 60 days after the date of enactment of this Act, the 
Secretary of Homeland Security, in consultation with the 
Administrator of General Services, shall submit to the 
Committees on Appropriations of the Senate and the House of 
Representatives a plan for the expenditure of these funds.

                      office of inspector general

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

                   U.S. Customs and Border Protection

                         salaries and expenses

    For an additional amount for ``Salaries and Expenses'', 
$160,000,000, of which $100,000,000 shall be for the 
procurement and deployment of non-intrusive inspection systems; 
and of which $60,000,000 shall be for procurement and 
deployment of tactical communications equipment and radios: 
Provided, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for expenditure of these 
funds.

        border security fencing, infrastructure, and technology

    For an additional amount for ``Border Security Fencing, 
Infrastructure, and Technology'', $100,000,000 for expedited 
development and deployment of border security technology on the 
Southwest border: Provided, That no later than 45 days after 
the date of enactment of this Act, the Secretary of Homeland 
Security shall submit to the Committees on Appropriations of 
the Senate and the House of Representatives a plan for 
expenditure of these funds.

                              construction

    For an additional amount for ``Construction'', $420,000,000 
solely for planning, management, design, alteration, and 
construction of U.S. Customs and Border Protection owned land 
border ports of entry: Provided, That no later than 45 days 
after the date of enactment of this Act, the Secretary of 
Homeland Security shall submit to the Committees on 
Appropriations of the Senate and the House of Representatives a 
plan for expenditure of these funds.

                U.S. Immigration and Customs Enforcement

                        automation modernization

    For an additional amount for ``Automation Modernization'', 
$20,000,000 for the procurement and deployment of tactical 
communications equipment and radios: Provided, That no later 
than 45 days after the date of enactment of this Act, the 
Secretary of Homeland Security shall submit to the Committees 
on Appropriations of the Senate and the House of 
Representatives a plan for expenditure of these funds.

                 Transportation Security Administration

                           aviation security

    For an additional amount for ``Aviation Security'', 
$1,000,000,000 for procurement and installation of checked 
baggage explosives detection systems and checkpoint explosives 
detection equipment: Provided, That the Assistant Secretary of 
Homeland Security (Transportation Security Administration) 
shall prioritize the award of these funds to accelerate the 
installations at locations with completed design plans: 
Provided further, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for the expenditure of 
these funds.

                              Coast Guard

              acquisition, construction, and improvements

    For an additional amount for ``Acquisition, Construction, 
and Improvements'', $98,000,000 for shore facilities and aids 
to navigation facilities; for priority procurements due to 
materials and labor cost increases; and for costs to repair, 
renovate, assess, or improve vessels: Provided, That no later 
than 45 days after the date of enactment of this Act, the 
Secretary of Homeland Security shall submit to the Committees 
on Appropriations of the Senate and the House of 
Representatives a plan for the expenditure of these funds.

                         alteration of bridges

     For an additional amount for ``Alteration of Bridges'', 
$142,000,000 for alteration or removal of obstructive bridges, 
as authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 
516): Provided, That the Coast Guard shall award these funds to 
those bridges that are ready to proceed to construction: 
Provided further, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for the expenditure of 
these funds.

                  Federal Emergency Management Agency

                        state and local programs

    For an additional amount for grants, $300,000,000, to be 
allocated as follows:
            (1) $150,000,000 for Public Transportation Security 
        Assistance and Railroad Security Assistance under 
        sections 1406 and 1513 of the Implementing 
        Recommendations of the 9/11 Commission Act of 2007 
        (Public Law 110-53; 6 U.S.C. 1135 and 1163).
            (2) $150,000,000 for Port Security Grants in 
        accordance with 46 U.S.C. 70107, notwithstanding 46 
        U.S.C. 70107(c).

                     firefighter assistance grants

    For an additional amount for competitive grants, 
$210,000,000 for modifying, upgrading, or constructing non-
Federal fire stations: Provided, That up to 5 percent shall be 
for program administration: Provided further, That no grant 
shall exceed $15,000,000.

            disaster assistance direct loan program account

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

                       emergency food and shelter

    For an additional amount to carry out the emergency food 
and shelter program pursuant to title III of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11331 et seq.), 
$100,000,000: Provided, That total administrative costs shall 
not exceed 3.5 percent of the total amount made available under 
this heading.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 601.  Notwithstanding any other provision of law, the 
President shall establish an arbitration panel under the 
Federal Emergency Management Agency public assistance program 
to expedite the recovery efforts from Hurricanes Katrina and 
Rita within the Gulf Coast Region. The arbitration panel shall 
have sufficient authority regarding the award or denial of 
disputed public assistance applications for covered hurricane 
damage under section 403, 406, or 407 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170b, 
5172, or 5173) for a project the total amount of which is more 
than $500,000.
    Sec. 602.  The Administrator of the Federal Emergency 
Management Agency may not prohibit or restrict the use of funds 
designated under the hazard mitigation grant program for damage 
caused by Hurricanes Katrina and Rita if the homeowner who is 
an applicant for assistance under such program commenced work 
otherwise eligible for hazard mitigation grant program 
assistance under section 404 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5170c) without 
approval in writing from the Administrator.
    Sec. 603. Subparagraph (E) of section 34(a)(1) of the 
Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
2229a(a)(1)(E)) shall not apply with respect to funds 
appropriated in this or any other Act making appropriations for 
fiscal year 2009 or 2010 for grants under such section 34.
    Sec. 604. (a) Requirement.--Except as provided in 
subsections (c) through (g), funds appropriated or otherwise 
available to the Department of Homeland Security may not be 
used for the procurement of an item described in subsection (b) 
if the item is not grown, reprocessed, reused, or produced in 
the United States.
    (b) Covered Items.--An item referred to in subsection (a) 
is any of the following, if the item is directly related to the 
national security interests of the United States:
            (1) An article or item of--
                    (A) clothing and the materials and 
                components thereof, other than sensors, 
                electronics, or other items added to, and not 
                normally associated with, clothing (and the 
                materials and components thereof);
                    (B) tents, tarpaulins, covers, textile 
                belts, bags, protective equipment (including 
                but not limited to body armor), sleep systems, 
                load carrying equipment (including but not 
                limited to fieldpacks), textile marine 
                equipment, parachutes, or bandages;
                    (C) cotton and other natural fiber 
                products, woven silk or woven silk blends, spun 
                silk yarn for cartridge cloth, synthetic fabric 
                or coated synthetic fabric (including all 
                textile fibers and yarns that are for use in 
                such fabrics), canvas products, or wool 
                (whether in the form of fiber or yarn or 
                contained in fabrics, materials, or 
                manufactured articles); or
                    (D) any item of individual equipment 
                manufactured from or containing such fibers, 
                yarns, fabrics, or materials.
    (c) Availability Exception.--Subsection (a) does not apply 
to the extent that the Secretary of Homeland Security 
determines that satisfactory quality and sufficient quantity of 
any such article or item described in subsection (b)(1) grown, 
reprocessed, reused, or produced in the United States cannot be 
procured as and when needed at United States market prices. 
This section is not applicable to covered items that are, or 
include, materials determined to be non-available in accordance 
with Federal Acquisition Regulation 25.104 Nonavailable 
Articles.
    (d) De Minimis Exception.--Notwithstanding subsection (a), 
the Secretary of Homeland Security may accept delivery of an 
item covered by subsection (b) that contains non-compliant 
fibers if the total value of non-compliant fibers contained in 
the end item does not exceed 10 percent of the total purchase 
price of the end item.
    (e) Exception for Certain Procurements Outside the United 
States.--Subsection (a) does not apply to the following:
            (1) Procurements by vessels in foreign waters.
            (2) Emergency procurements.
    (f) Exception for Small Purchases.--Subsection (a) does not 
apply to purchases for amounts not greater than the simplified 
acquisition threshold referred to in section 2304(g) of title 
10, United States Code.
    (g) Applicability to Contracts and Subcontracts for 
Procurement of Commercial Items.--This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items not withstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430), with the exception of 
commercial items listed under subsections (b)(1)(C) and 
(b)(1)(D) above. For the purposes of this section, 
``commercial'' shall be as defined in the Federal Acquisition 
Regulation--Part 2.
    (h) Geographic Coverage.--In this section, the term 
``United States'' includes the possessions of the United 
States.
    (i) Notification Required Within 7 Days After Contract 
Award if Certain Exceptions Applied.--In the case of any 
contract for the procurement of an item described in subsection 
(b)(1), if the Secretary of Homeland Security applies an 
exception set forth in subsection (c) with respect to that 
contract, the Secretary shall, not later than 7 days after the 
award of the contract, post a notification that the exception 
has been applied on the Internet site maintained by the General 
Services Administration known as FedBizOps.gov (or any 
successor site).
    (j) Training During Fiscal Year 2009.--
            (1) In general.--The Secretary of Homeland Security 
        shall ensure that each member of the acquisition 
        workforce in the Department of Homeland Security who 
        participates personally and substantially in the 
        acquisition of textiles on a regular basis receives 
        training during fiscal year 2009 on the requirements of 
        this section and the regulations implementing this 
        section.
            (2) Inclusion of information in new training 
        programs.--The Secretary shall ensure that any training 
        program for the acquisition workforce developed or 
        implemented after the date of the enactment of this Act 
        includes comprehensive information on the requirements 
        described in paragraph (1).
    (k) Consistency With International Agreements.--This 
section shall be applied in a manner consistent with United 
States obligations under international agreements.
    (l) Effective Date.--This section applies with respect to 
contracts entered into by the Department of Homeland Security 
180 days after the date of the enactment of this Act.

         TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                   management of lands and resources

    For an additional amount for ``Management of Lands and 
Resources'', for activities on all Bureau of Land Management 
lands including maintenance, rehabilitation, and restoration of 
facilities, property, trails and lands and for remediation of 
abandoned mines and wells, $125,000,000.

                              construction

    For an additional amount for ``Construction'', for 
activities on all Bureau of Land Management lands including 
construction, reconstruction, decommissioning and repair of 
roads, bridges, trails, property, and facilities and for energy 
efficient retrofits of existing facilities, $180,000,000.

                        wildland fire management

    For an additional amount for ``Wildland Fire Management'', 
for hazardous fuels reduction, $15,000,000.

                United States Fish and Wildlife Service

                          resource management

    For an additional amount for ``Resource Management'', for 
deferred maintenance, construction, and capital improvement 
projects on national wildlife refuges and national fish 
hatcheries and for high priority habitat restoration projects, 
$165,000,000.

                              construction

    For an additional amount for ``Construction'', for 
construction, reconstruction, and repair of roads, bridges, 
property, and facilities and for energy efficient retrofits of 
existing facilities, $115,000,000.

                         National Park Service

                 operation of the national park system

    For an additional amount for ``Operation of the National 
Park System'', for deferred maintenance of facilities and 
trails and for other critical repair and rehabilitation 
projects, $146,000,000.

                       HISTORIC PRESERVATION FUND

    For an additional amount for ``Historic Preservation 
Fund'', for historic preservation projects at historically 
black colleges and universities as authorized by the Historic 
Preservation Fund Act of 1996 and the Omnibus Parks and Public 
Lands Act of 1996, $15,000,000: Provided, That any matching 
requirements otherwise required for such projects are waived.

                              construction

    For an additional amount for ``Construction'', for repair 
and restoration of roads; construction of facilities, including 
energy efficient retrofits of existing facilities; equipment 
replacement; preservation and repair of historical resources 
within the National Park System; cleanup of abandoned mine 
sites on park lands; and other critical infrastructure 
projects, $589,000,000.

                    United States Geological Survey

                 surveys, investigations, and research

    For an additional amount for ``Surveys, Investigations, and 
Research'', $140,000,000, for repair, construction and 
restoration of facilities; equipment replacement and upgrades 
including stream gages, and seismic and volcano monitoring 
systems; national map activities; and other critical deferred 
maintenance and improvement projects.

                        Bureau of Indian Affairs

                      operation of indian programs

    For an additional amount for ``Operation of Indian 
Programs'', for workforce training programs and the housing 
improvement program, $40,000,000.

                              construction

    For an additional amount for ``Construction'', for repair 
and restoration of roads; replacement school construction; 
school improvements and repairs; and detention center 
maintenance and repairs, $450,000,000: Provided, That section 
1606 of this Act shall not apply to tribal contracts entered 
into by the Bureau of Indian Affairs with this appropriation.

                 indian guaranteed loan program account

    For an additional amount for ``Indian Guaranteed Loan 
Program Account'', $10,000,000.

                      Office of Inspector General

                         salaries and expenses

    For an additional amount for ``Office of Inspector 
General'', $15,000,000, to remain available until September 30, 
2012.

                    ENVIRONMENTAL PROTECTION AGENCY

                      Office of Inspector General

    For an additional amount for ``Office of Inspector 
General'', $20,000,000, to remain available until September 30, 
2012.

                     Hazardous Substance Superfund

    For an additional amount for ``Hazardous Substance 
Superfund'', $600,000,000, which shall be for the Superfund 
Remedial program: Provided, That the Administrator of the 
Environmental Protection Agency (Administrator) may retain up 
to 3 percent of the funds appropriated herein for management 
and oversight purposes.

          Leaking Underground Storage Tank Trust Fund Program

    For an additional amount for ``Leaking Underground Storage 
Tank Trust Fund Program'', $200,000,000, which shall be for 
cleanup activities authorized by section 9003(h) of the Solid 
Waste Disposal Act: Provided, That none of these funds shall be 
subject to cost share requirements under section 9003(h)(7)(B) 
of such Act: Provided further, That the Administrator may 
retain up to 1.5 percent of the funds appropriated herein for 
management and oversight purposes.

                   State and Tribal Assistance Grants

                     (including transfers of funds)

    For an additional amount for ``State and Tribal Assistance 
Grants'', $6,400,000,000, which shall be allocated as follows:
            (1) $4,000,000,000 shall be for capitalization 
        grants for the Clean Water State Revolving Funds under 
        title VI of the Federal Water Pollution Control Act and 
        $2,000,000,000 shall be for capitalization grants under 
        section 1452 of the Safe Drinking Water Act: Provided, 
        That the Administrator may retain up to 1 percent of 
        the funds appropriated herein for management and 
        oversight purposes: Provided further, That funds 
        appropriated herein shall not be subject to the 
        matching or cost share requirements of sections 
        602(b)(2), 602(b)(3) or 202 of the Federal Water 
        Pollution Control Act nor the matching requirements of 
        section 1452(e) of the Safe Drinking Water Act: 
        Provided further, That the Administrator shall 
        reallocate funds appropriated herein for the Clean and 
        Drinking Water State Revolving Funds (Revolving Funds) 
        where projects are not under contract or construction 
        within 12 months of the date of enactment of this Act: 
        Provided further, That notwithstanding the priority 
        rankings they would otherwise receive under each 
        program, priority for funds appropriated herein shall 
        be given to projects on a State priority list that are 
        ready to proceed to construction within 12 months of 
        the date of enactment of this Act: Provided further, 
        That notwithstanding the requirements of section 603(d) 
        of the Federal Water Pollution Control Act or section 
        1452(f) of the Safe Drinking Water Act, for the funds 
        appropriated herein, each State shall use not less than 
        50 percent of the amount of its capitalization grants 
        to provide additional subsidization to eligible 
        recipients in the form of forgiveness of principal, 
        negative interest loans or grants or any combination of 
        these: Provided further, That, to the extent there are 
        sufficient eligible project applications, not less than 
        20 percent of the funds appropriated herein for the 
        Revolving Funds shall be for projects to address green 
        infrastructure, water or energy efficiency improvements 
        or other environmentally innovative activities: 
        Provided further, That notwithstanding the limitation 
        on amounts specified in section 518(c) of the Federal 
        Water Pollution Control Act, up to 1.5 percent of the 
        funds appropriated herein for the Clean Water State 
        Revolving Funds may be reserved by the Administrator 
        for tribal grants under section 518(c) of such Act: 
        Provided further, That up to 4 percent of the funds 
        appropriated herein for tribal set-asides under the 
        Revolving Funds may be transferred to the Indian Health 
        Service to support management and oversight of tribal 
        projects: Provided further, That none of the funds 
        appropriated herein shall be available for the purchase 
        of land or easements as authorized by section 603(c) of 
        the Federal Water Pollution Control Act or for 
        activities authorized by section 1452(k) of the Safe 
        Drinking Water Act: Provided further, That 
        notwithstanding section 603(d)(2) of the Federal Water 
        Pollution Control Act and section 1452(f)(2) of the 
        Safe Drinking Water Act, funds may be used to buy, 
        refinance or restructure the debt obligations of 
        eligible recipients only where such debt was incurred 
        on or after October 1, 2008;
            (2) $100,000,000 shall be to carry out Brownfields 
        projects authorized by section 104(k) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980: Provided, That the Administrator 
        may reserve up to 3.5 percent of the funds appropriated 
        herein for management and oversight purposes: Provided 
        further, That none of the funds appropriated herein 
        shall be subject to cost share requirements under 
        section 104(k)(9)(B)(iii) of such Act; and
            (3) $300,000,000 shall be for Diesel Emission 
        Reduction Act grants pursuant to title VII, subtitle G 
        of the Energy Policy Act of 2005: Provided, That the 
        Administrator may reserve up to 2 percent of the funds 
        appropriated herein for management and oversight 
        purposes: Provided further, That none of the funds 
        appropriated herein for Diesel Emission Reduction Act 
        grants shall be subject to the State Grant and Loan 
        Program Matching Incentive provisions of section 
        793(c)(3) of such Act.

       Administrative Provision, Environmental Protection Agency

                     (INCLUDING TRANSFERS OF FUNDS)

    Funds made available to the Environmental Protection Agency 
by this Act for management and oversight purposes shall remain 
available until September 30, 2011, and may be transferred to 
the ``Environmental Programs and Management'' account as 
needed.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                  capital improvement and maintenance

    For an additional amount for ``Capital Improvement and 
Maintenance'', $650,000,000, for priority road, bridge and 
trail maintenance and decommissioning, including related 
watershed restoration and ecosystem enhancement projects; 
facilities improvement, maintenance and renovation; remediation 
of abandoned mine sites; and support costs necessary to carry 
out this work.

                        wildland fire management

    For an additional amount for ``Wildland Fire Management'', 
$500,000,000, of which $250,000,000 is for hazardous fuels 
reduction, forest health protection, rehabilitation and hazard 
mitigation activities on Federal lands and of which 
$250,000,000 is for State and private forestry activities 
including hazardous fuels reduction, forest health and 
ecosystem improvement activities on State and private lands 
using all authorities available to the Forest Service: 
Provided, That up to $50,000,000 of the total funding may be 
used to make wood-to-energy grants to promote increased 
utilization of biomass from Federal, State and private lands: 
Provided further, That funds provided for activities on State 
and private lands shall not be subject to matching or cost 
share requirements.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                         indian health services

    For an additional amount for ``Indian Health Services'', 
for health information technology activities, $85,000,000: 
Provided, That such funds may be used for both telehealth 
services development and related infrastructure requirements 
that are typically funded through the ``Indian Health 
Facilities'' account: Provided further, That notwithstanding 
any other provision of law, health information technology funds 
provided within this title shall be allocated at the discretion 
of the Director of the Indian Health Service.

                        indian health facilities

    For an additional amount for ``Indian Health Facilities'', 
for facilities construction projects, deferred maintenance and 
improvement projects, the backlog of sanitation projects and 
the purchase of equipment, $415,000,000, of which $227,000,000 
is provided within the health facilities construction activity 
for the completion of up to two facilities from the current 
priority list for which work has already been initiated: 
Provided, That for the purposes of this Act, spending caps 
included within the annual appropriation for ``Indian Health 
Facilities'' for the purchase of medical equipment shall not 
apply: Provided further, That section 1606 of this Act shall 
not apply to tribal contracts entered into by the Service with 
this appropriation.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution

                           FACILITIES CAPITAL

    For an additional amount for ``Facilities Capital'', for 
repair and revitalization of existing facilities, $25,000,000.

           National Foundation on the Arts and the Humanities

                    National Endowment for the Arts

                       grants and administration

    For an additional amount for ``Grants and Administration'', 
$50,000,000, to be distributed in direct grants to fund arts 
projects and activities which preserve jobs in the non-profit 
arts sector threatened by declines in philanthropic and other 
support during the current economic downturn: Provided, That 40 
percent of such funds shall be distributed to State arts 
agencies and regional arts organizations in a manner similar to 
the agency's current practice and 60 percent of such funds 
shall be for competitively selected arts projects and 
activities according to sections 2 and 5(c) of the National 
Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 
951, 954(c)): Provided further, That matching requirements 
under section 5(e) of such Act shall be waived.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 701. (a) Within 30 days of enactment of this Act, each 
agency receiving funds under this title shall submit a general 
plan for the expenditure of such funds to the House and Senate 
Committees on Appropriations.
    (b) Within 90 days of enactment of this Act, each agency 
receiving funds under this title shall submit to the Committees 
a report containing detailed project level information 
associated with the general plan submitted pursuant to 
subsection (a).
    Sec. 702.  In carrying out the work for which funds in this 
title are being made available, the Secretary of the Interior 
and the Secretary of Agriculture shall utilize, where 
practicable, the Public Lands Corps, Youth Conservation Corps, 
Student Conservation Association, Job Corps and other related 
partnerships with Federal, State, local, tribal or non-profit 
groups that serve young adults.
    Sec. 703. Each agency receiving funds under this title may 
transfer up to 10 percent of the funds in any account to other 
appropriation accounts within the agency, if the head of the 
agency (1) determines that the transfer will enhance the 
efficiency or effectiveness of the use of the funds without 
changing the intended purpose; and (2) notifies the Committees 
on Appropriations of the House of Representatives and the 
Senate 10 days prior to the transfer.

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

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    For an additional amount for ``Training and Employment 
Services'' for activities under the Workforce Investment Act of 
1998 (``WIA''), $3,950,000,000, which shall be available for 
obligation on the date of enactment of this Act, as follows:
            (1) $500,000,000 for grants to the States for adult 
        employment and training activities, including 
        supportive services and needs-related payments 
        described in section 134(e)(2) and (3) of the WIA: 
        Provided, That a priority use of these funds shall be 
        services to individuals described in 134(d)(4)(E) of 
        the WIA;
            (2) $1,200,000,000 for grants to the States for 
        youth activities, including summer employment for 
        youth: Provided, That no portion of such funds shall be 
        reserved to carry out section 127(b)(1)(A) of the WIA: 
        Provided further, That for purposes of section 
        127(b)(1)(C)(iv) of the WIA, funds available for youth 
        activities shall be allotted as if the total amount 
        available for youth activities in the fiscal year does 
        not exceed $1,000,000,000: Provided further, That with 
        respect to the youth activities provided with such 
        funds, section 101(13)(A) of the WIA shall be applied 
        by substituting ``age 24'' for ``age 21'': Provided 
        further, That the work readiness performance indicator 
        described in section 136(b)(2)(A)(ii)(I) of the WIA 
        shall be the only measure of performance used to assess 
        the effectiveness of summer employment for youth 
        provided with such funds;
            (3) $1,250,000,000 for grants to the States for 
        dislocated worker employment and training activities;
            (4) $200,000,000 for the dislocated workers 
        assistance national reserve;
            (5) $50,000,000 for YouthBuild activities: 
        Provided, That for program years 2008 and 2009, the 
        YouthBuild program may serve an individual who has 
        dropped out of high school and re-enrolled in an 
        alternative school, if that re-enrollment is part of a 
        sequential service strategy; and
            (6) $750,000,000 for a program of competitive 
        grants for worker training and placement in high growth 
        and emerging industry sectors: Provided, That 
        $500,000,000 shall be for research, labor exchange and 
        job training projects that prepare workers for careers 
        in energy efficiency and renewable energy as described 
        in section 171(e)(1)(B) of the WIA: Provided further, 
        That in awarding grants from those funds not designated 
        in the preceding proviso, the Secretary of Labor shall 
        give priority to projects that prepare workers for 
        careers in the health care sector:
Provided, That funds made available in this paragraph shall 
remain available through June 30, 2010: Provided further, That 
a local board may award a contract to an institution of higher 
education or other eligible training provider if the local 
board determines that it would facilitate the training of 
multiple individuals in high-demand occupations, if such 
contract does not limit customer choice.

            community service employment for older americans

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

     state unemployment insurance and employment service operations

    For an additional amount for ``State Unemployment Insurance 
and Employment Service Operations'' for grants to States in 
accordance with section 6 of the Wagner-Peyser Act, 
$400,000,000, which may be expended from the Employment 
Security Administration Account in the Unemployment Trust Fund, 
and which shall be available for obligation on the date of 
enactment of this Act: Provided, That such funds shall remain 
available to the States through September 30, 2010: Provided 
further, That $250,000,000 of such funds shall be used by 
States for reemployment services for unemployment insurance 
claimants (including the integrated Employment Service and 
Unemployment Insurance information technology required to 
identify and serve the needs of such claimants): Provided 
further, That the Secretary of Labor shall establish planning 
and reporting procedures necessary to provide oversight of 
funds used for reemployment services.

                        Departmental Management

                         salaries and expenses

                     (including transfer of funds)

    For an additional amount for ``Departmental Management'', 
$80,000,000, for the enforcement of worker protection laws and 
regulations, oversight, and coordination activities related to 
the infrastructure and unemployment insurance investments in 
this Act: Provided, That the Secretary of Labor may transfer 
such sums as necessary to ``Employment and Standards 
Administration'', ``Employee Benefits Security 
Administration'', ``Occupational Safety and Health 
Administration'', and ``Employment and Training 
Administration--Program Administration'' for enforcement, 
oversight, and coordination activities: Provided further, That 
prior to obligating any funds proposed to be transferred from 
this account, the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate 
an operating plan describing the planned uses of each amount 
proposed to be transferred.

                          office of job corps

    For an additional amount for ``Office of Job Corps'', 
$250,000,000, for construction, rehabilitation and acquisition 
of Job Corps Centers, which shall be available upon the date of 
enactment of this Act and remain available for obligation 
through June 30, 2010: Provided, That section 1552(a) of title 
31, United States Code shall not apply if funds are used for a 
multi-year lease agreement that will result in construction 
activities that can commence within 120 days of enactment of 
this Act: Provided further, That notwithstanding section 
3324(a) of title 31, United States Code, the funds used for an 
agreement under the preceding proviso may be used for advance, 
progress, and other payments: Provided further, That the 
Secretary of Labor may transfer up to 15 percent of such funds 
to meet the operational needs of such centers, which may 
include training for careers in the energy efficiency, 
renewable energy, and environmental protection industries: 
Provided further, That the Secretary shall provide to the 
Committees on Appropriations of the House of Representatives 
and the Senate an operating plan describing the allocation of 
funds, and a report on the actual obligations, expenditures, 
and unobligated balances for each activity funded under this 
heading not later than September 30, 2009 and quarterly 
thereafter as long as funding provided under this heading is 
available for obligation or expenditure.

                      office of inspector general

    For an additional amount for the ``Office of Inspector 
General'', $6,000,000, which shall remain available through 
September 30, 2012, for salaries and expenses necessary for 
oversight and audit of programs, grants, and projects funded in 
this Act.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                     health resources and services

    For an additional amount for ``Health Resources and 
Services'', $2,500,000,000 which shall be used as follows:
            (1) $500,000,000 shall be for grants to health 
        centers authorized under section 330 of the Public 
        Health Service Act (``PHS Act'');
            (2) $1,500,000,000 shall be available for grants 
        for construction, renovation and equipment, and for the 
        acquisition of health information technology systems, 
        for health centers including health center controlled 
        networks receiving operating grants under section 330 
        of the PHS Act, notwithstanding the limitation in 
        section 330(e)(3); and
            (3) $500,000,000 to address health professions 
        workforce shortages, of which $75,000,000 for the 
        National Health Service Corps shall remain available 
        through September 30, 2011: Provided, That funds may be 
        used to provide scholarships, loan repayment, and 
        grants to training programs for equipment as authorized 
        in the PHS Act, and grants authorized in sections 330L, 
        747, 767 and 768 of the PHS Act: Provided further, That 
        20 percent of the funds allocated to the National 
        Health Service Corps shall be used for field 
        operations:
Provided, That up to 0.5 percent of funds provided in this 
paragraph may be used for administration of such funds: 
Provided further, That the Secretary shall provide to the 
Committees on Appropriations of the House of Representatives 
and the Senate an operating plan detailing activities to be 
supported and timelines for expenditure prior to making any 
Federal obligations of funds provided in this paragraph but not 
later than 90 days after the date of enactment of this Act: 
Provided further, That the Secretary shall provide to the 
Committees on Appropriations of the House of Representatives 
and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each activity funded 
in this paragraph not later than November 1, 2009 and every 6 
months thereafter as long as funding provided in this paragraph 
is available for obligation or expenditure.

                     National Institutes of Health

                 national center for research resources

    For an additional amount for ``National Center for Research 
Resources'', $1,300,000,000, of which $1,000,000,000 shall be 
for grants or contracts under section 481A of the Public Health 
Service Act to construct, renovate or repair existing non-
Federal research facilities: Provided, That sections 
481A(c)(1)(B)(ii), paragraphs (1), (3), and (4) of section 
481A(e), and section 481B of such Act shall not apply to the 
use of such funds: Provided further, That the references to 
``20 years'' in subsections (c)(1)(B)(i) and (f) of section 
481A of such Act are deemed to be references to ``10 years'' 
for purposes of using such funds: Provided further, That the 
National Center for Research Resources may also use 
$300,000,000 to provide, under the authority of section 301 and 
title IV of such Act, shared instrumentation and other capital 
research equipment to recipients of grants and contracts under 
section 481A of such Act and other appropriate entities: 
Provided further, That the Director of the Center shall provide 
to the Committees on Appropriations of the House of 
Representatives and the Senate an annual report indicating the 
number of institutions receiving awards of a grant or contract 
under section 481A of such Act, the proposed use of the 
funding, the average award size, a list of grant or contract 
recipients, and the amount of each award.

                         office of the director

                     (including transfer of funds)

    For an additional amount for ``Office of the Director'', 
$8,200,000,000: Provided, That $7,400,000,000 shall be 
transferred to the Institutes and Centers of the National 
Institutes of Health (``NIH'') and to the Common Fund 
established under section 402A(c)(1) of the Public Health 
Service Act in proportion to the appropriations otherwise made 
to such Institutes, Centers, and Common Fund for fiscal year 
2009: Provided further, That these funds shall be used to 
support additional scientific research and shall be merged with 
and be available for the same purposes as the appropriation or 
fund to which transferred: Provided further, That this transfer 
authority is in addition to any other transfer authority 
available to the NIH: Provided further, That none of these 
funds may be transferred to ``National Institutes of Health--
Buildings and Facilities'', the Center for Scientific Review, 
the Center for Information Technology, the Clinical Center, or 
the Global Fund for HIV/AIDS, Tuberculosis and Malaria: 
Provided further, That the funds provided in this Act to the 
NIH shall not be subject to the provisions of 15 U.S.C. 
638(f)(1) and 15 U.S.C. 638(n)(1): Provided further, That 
$400,000,000 may be used to carry out section 215 of division G 
of Public Law 110-161.

                        buildings and facilities

    For an additional amount for ``Buildings and Facilities'', 
$500,000,000, to fund high-priority repair, construction and 
improvement projects for National Institutes of Health 
facilities on the Bethesda, Maryland campus and other agency 
locations.

               Agency for Healthcare Research and Quality

                    healthcare research and quality

                     (including transfer of funds)

    For an additional amount for ``Healthcare Research and 
Quality'' to carry out titles III and IX of the Public Health 
Service Act, part A of title XI of the Social Security Act, and 
section 1013 of the Medicare Prescription Drug, Improvement, 
and Modernization Act of 2003, $700,000,000 for comparative 
effectiveness research: Provided, That of the amount 
appropriated in this paragraph, $400,000,000 shall be 
transferred to the Office of the Director of the National 
Institutes of Health (``Office of the Director'') to conduct or 
support comparative effectiveness research under section 301 
and title IV of the Public Health Service Act: Provided 
further, That funds transferred to the Office of the Director 
may be transferred to the Institutes and Centers of the 
National Institutes of Health and to the Common Fund 
established under section 402A(c)(1) of the Public Health 
Service Act: Provided further, That this transfer authority is 
in addition to any other transfer authority available to the 
National Institutes of Health: Provided further, That within 
the amount available in this paragraph for the Agency for 
Healthcare Research and Quality, not more than 1 percent shall 
be made available for additional full-time equivalents.
    In addition, $400,000,000 shall be available for 
comparative effectiveness research to be allocated at the 
discretion of the Secretary of Health and Human Services 
(``Secretary''): Provided, That the funding appropriated in 
this paragraph shall be used to accelerate the development and 
dissemination of research assessing the comparative 
effectiveness of health care treatments and strategies, through 
efforts that: (1) conduct, support, or synthesize research that 
compares the clinical outcomes, effectiveness, and 
appropriateness of items, services, and procedures that are 
used to prevent, diagnose, or treat diseases, disorders, and 
other health conditions; and (2) encourage the development and 
use of clinical registries, clinical data networks, and other 
forms of electronic health data that can be used to generate or 
obtain outcomes data: Provided further, That the Secretary 
shall enter into a contract with the Institute of Medicine, for 
which no more than $1,500,000 shall be made available from 
funds provided in this paragraph, to produce and submit a 
report to the Congress and the Secretary by not later than June 
30, 2009, that includes recommendations on the national 
priorities for comparative effectiveness research to be 
conducted or supported with the funds provided in this 
paragraph and that considers input from stakeholders: Provided 
further, That the Secretary shall consider any recommendations 
of the Federal Coordinating Council for Comparative 
Effectiveness Research established by section 804 of this Act 
and any recommendations included in the Institute of Medicine 
report pursuant to the preceding proviso in designating 
activities to receive funds provided in this paragraph and may 
make grants and contracts with appropriate entities, which may 
include agencies within the Department of Health and Human 
Services and other governmental agencies, as well as private 
sector entities, that have demonstrated experience and capacity 
to achieve the goals of comparative effectiveness research: 
Provided further, That the Secretary shall publish information 
on grants and contracts awarded with the funds provided under 
this heading within a reasonable time of the obligation of 
funds for such grants and contracts and shall disseminate 
research findings from such grants and contracts to clinicians, 
patients, and the general public, as appropriate: Provided 
further, That, to the extent feasible, the Secretary shall 
ensure that the recipients of the funds provided by this 
paragraph offer an opportunity for public comment on the 
research: Provided further, That research conducted with funds 
appropriated under this paragraph shall be consistent with 
Departmental policies relating to the inclusion of women and 
minorities in research: Provided further, That the Secretary 
shall provide the Committees on Appropriations of the House of 
Representatives and the Senate, the Committee on Energy and 
Commerce and the Committee on Ways and Means of the House of 
Representatives, and the Committee on Health, Education, Labor, 
and Pensions and the Committee on Finance of the Senate with an 
annual report on the research conducted or supported through 
the funds provided under this heading: Provided further, That 
the Secretary, jointly with the Directors of the Agency for 
Healthcare Research and Quality and the National Institutes of 
Health, shall provide the Committees on Appropriations of the 
House of Representatives and the Senate a fiscal year 2009 
operating plan for the funds appropriated under this heading 
prior to making any Federal obligations of such funds in fiscal 
year 2009, but not later than July 30, 2009, and a fiscal year 
2010 operating plan for such funds prior to making any Federal 
obligations of such funds in fiscal year 2010, but not later 
than November 1, 2009, that detail the type of research being 
conducted or supported, including the priority conditions 
addressed; and specify the allocation of resources within the 
Department of Health and Human Services: Provided further, That 
the Secretary, jointly with the Directors of the Agency for 
Healthcare Research and Quality and the National Institutes of 
Health, shall provide to the Committees on Appropriations of 
the House of Representatives and the Senate a report on the 
actual obligations, expenditures, and unobligated balances for 
each activity funded under this heading not later than November 
1, 2009, and every 6 months thereafter as long as funding 
provided under this heading is available for obligation or 
expenditure.

                Administration for Children and Families

   payments to states for the child care and development block grant

    For an additional amount for ``Payments to States for the 
Child Care and Development Block Grant'', $2,000,000,000, which 
shall be used to supplement, not supplant State general revenue 
funds for child care assistance for low-income families: 
Provided, That, in addition to the amounts required to be 
reserved by the States under section 658G of the Child Care and 
Development Block Grant Act of 1990, $255,186,000 shall be 
reserved by the States for activities authorized under section 
658G, of which $93,587,000 shall be for activities that improve 
the quality of infant and toddler care.

                children and families services programs

    For an additional amount for ``Children and Families 
Services Programs'', $3,150,000,000, which shall be used as 
follows:
            (1) $1,000,000,000 for carrying out activities 
        under the Head Start Act.
            (2) $1,100,000,000 for expansion of Early Head 
        Start programs, as described in section 645A of the 
        Head Start Act: Provided, That of the funds provided in 
        this paragraph, up to 10 percent shall be available for 
        the provision of training and technical assistance to 
        such programs consistent with section 645A(g)(2) of 
        such Act, and up to 3 percent shall be available for 
        monitoring the operation of such programs consistent 
        with section 641A of such Act.
            (3) $1,000,000,000 for carrying out activities 
        under sections 674 through 679 of the Community 
        Services Block Grant Act, of which no part shall be 
        subject to section 674(b)(3) of such Act: Provided, 
        That notwithstanding section 675C(a)(1) and 675C(b) of 
        such Act, 1 percent of the funds made available to each 
        State from this additional amount shall be used for 
        benefits enrollment coordination activities relating to 
        the identification and enrollment of eligible 
        individuals and families in Federal, State, and local 
        benefit programs: Provided further, That all funds 
        remaining available to a State from this additional 
        amount after application of the previous proviso shall 
        be distributed to eligible entities as defined in 
        section 673(1) of such Act: Provided further, That for 
        services furnished under such Act during fiscal years 
        2009 and 2010, States may apply the last sentence of 
        section 673(2) of such Act by substituting ``200 
        percent'' for ``125 percent''.
            (4) $50,000,000 for carrying out activities under 
        section 1110 of the Social Security Act.

                        Administration on Aging

                        aging services programs

    For an additional amount for ``Aging Services Programs'' 
under subparts 1 and 2 of part C, of title III, and under title 
VI, of the Older Americans Act of 1965, $100,000,000, of which 
$65,000,000 shall be for Congregate Nutrition Services, 
$32,000,000 shall be for Home-Delivered Nutrition Services and 
$3,000,000 shall be for Nutrition Services for Native 
Americans.

                        Office of the Secretary

  office of the national coordinator for health information technology

                     (including transfer of funds)

    For an additional amount for ``Office of the National 
Coordinator for Health Information Technology'', 
$2,000,000,000, to carry out title XIII of this Act, to remain 
available until expended: Provided, That of such amount, the 
Secretary of Health and Human Services shall transfer 
$20,000,000 to the Director of the National Institute of 
Standards and Technology in the Department of Commerce for 
continued work on advancing health care information enterprise 
integration through activities such as technical standards 
analysis and establishment of conformance testing 
infrastructure, so long as such activities are coordinated with 
the Office of the National Coordinator for Health Information 
Technology: Provided further, That $300,000,000 is to support 
regional or sub-national efforts toward health information 
exchange: Provided further, That 0.25 percent of the funds 
provided in this paragraph may be used for administration of 
such funds: Provided further, That funds available under this 
heading shall become available for obligation only upon 
submission of an annual operating plan by the Secretary to the 
Committees on Appropriations of the House of Representatives 
and the Senate: Provided further, That the fiscal year 2009 
operating plan shall be provided not later than 90 days after 
enactment of this Act and that subsequent annual operating 
plans shall be provided not later than November 1 of each year: 
Provided further, That these operating plans shall describe how 
expenditures are aligned with the specific objectives, 
milestones, and metrics of the Federal Health Information 
Technology Strategic Plan, including any subsequent updates to 
the Plan; the allocation of resources within the Department of 
Health and Human Services and other Federal agencies; and the 
identification of programs and activities that are supported: 
Provided further, That the Secretary shall provide to the 
Committees on Appropriations of the House of Representatives 
and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each major set of 
activities not later than November 1, 2009, and every 6 months 
thereafter as long as funding provided under this heading is 
available for obligation or expenditure.

                      office of inspector general

    For an additional amount for the ``Office of Inspector 
General'', $17,000,000 which shall remain available until 
September 30, 2012.

            public health and social services emergency fund

    For an additional amount for ``Public Health and Social 
Services Emergency Fund'' to improve information technology 
security at the Department of Health and Human Services, 
$50,000,000.

                      prevention and wellness fund

                     (including transfer of funds)

    For necessary expenses for a ``Prevention and Wellness 
Fund'' to be administered through the Department of Health and 
Human Services, Office of the Secretary, $1,000,000,000: 
Provided, That of the amount provided in this paragraph, 
$300,000,000 shall be transferred to the Centers for Disease 
Control and Prevention (``CDC'') as an additional amount to 
carry out the immunization program (``section 317 immunization 
program'') authorized by section 317(a), (j), and (k)(1) of the 
Public Health Service Act (``PHS Act''): Provided further, That 
of the amount provided in this paragraph, $650,000,000 shall be 
to carry out evidence-based clinical and community-based 
prevention and wellness strategies authorized by the PHS Act, 
as determined by the Secretary, that deliver specific, 
measurable health outcomes that address chronic disease rates: 
Provided further, That funds appropriated in the preceding 
proviso may be transferred to other appropriation accounts of 
the Department of Health and Human Services, as determined by 
the Secretary to be appropriate: Provided further, That of the 
amount appropriated in this paragraph, $50,000,000 shall be 
provided to States for an additional amount to carry out 
activities to implement healthcare-associated infections 
reduction strategies: Provided further, That not more than 0.5 
percent of funds made available in this paragraph may be used 
for management and oversight expenses in the office or division 
of the Department of Health and Human Services administering 
the funds: Provided further, That the Secretary shall, directly 
or through contracts with public or private entities, provide 
for annual evaluations of programs carried out with funds 
provided under this heading in order to determine the quality 
and effectiveness of the programs: Provided further, That the 
Secretary shall, not later than 1 year after the date of 
enactment of this Act, submit to the Committees on 
Appropriations of the House of Representatives and the Senate, 
the Committee on Energy and Commerce of the House of 
Representatives, and the Committee on Health, Education, Labor, 
and Pensions of the Senate, a report summarizing the annual 
evaluations of programs from the preceding proviso: Provided 
further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate 
an operating plan for the Prevention and Wellness Fund prior to 
making any Federal obligations of funds provided in this 
paragraph (excluding funds to carry out the section 317 
immunization program), but not later than 90 days after the 
date of enactment of this Act, that indicates the prevention 
priorities to be addressed; provides measurable goals for each 
prevention priority; details the allocation of resources within 
the Department of Health and Human Services; and identifies 
which programs or activities are supported, including 
descriptions of any new programs or activities: Provided 
further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a 
report on the actual obligations, expenditures, and unobligated 
balances for each activity funded under this heading not later 
than November 1, 2009, and every 6 months thereafter as long as 
funding provided under this heading is available for obligation 
or expenditure.

                        DEPARTMENT OF EDUCATION

                    Education for the Disadvantaged

    For an additional amount for ``Education for the 
Disadvantaged'' to carry out title I of the Elementary and 
Secondary Education Act of 1965 (``ESEA''), $13,000,000,000: 
Provided, That $5,000,000,000 shall be available for targeted 
grants under section 1125 of the ESEA: Provided further, That 
$5,000,000,000 shall be available for education finance 
incentive grants under section 1125A of the ESEA: Provided 
further, That $3,000,000,000 shall be for school improvement 
grants under section 1003(g) of the ESEA: Provided further, 
That each local educational agency receiving funds available 
under this paragraph shall be required to file with the State 
educational agency, no later than December 1, 2009, a school-
by-school listing of per-pupil educational expenditures from 
State and local sources during the 2008-2009 academic year: 
Provided further, That each State educational agency shall 
report that information to the Secretary of Education by March 
31, 2010.

                               Impact Aid

    For an additional amount for ``Impact Aid'' to carry out 
section 8007 of title VIII of the Elementary and Secondary 
Education Act of 1965, $100,000,000, which shall be expended 
pursuant to the requirements of section 805.

                      School Improvement Programs

    For an additional amount for ``School Improvement 
Programs'' to carry out subpart 1, part D of title II of the 
Elementary and Secondary Education Act of 1965 (``ESEA''), and 
subtitle B of title VII of the McKinney-Vento Homeless 
Assistance Act, $720,000,000: Provided, That $650,000,000 shall 
be available for subpart 1, part D of title II of the ESEA: 
Provided further, That the Secretary shall allot $70,000,000 
for grants under McKinney-Vento to each State in proportion to 
the number of homeless students identified by the State during 
the 2007-2008 school year relative to the number of such 
children identified nationally during that school year: 
Provided further, That State educational agencies shall 
subgrant the McKinney-Vento funds to local educational agencies 
on a competitive basis or according to a formula based on the 
number of homeless students identified by the local educational 
agencies in the State: Provided further, That the Secretary 
shall distribute the McKinney-Vento funds to the States not 
later than 60 days after the date of the enactment of this Act: 
Provided further, That each State shall subgrant the McKinney-
Vento funds to local educational agencies not later than 120 
days after receiving its grant from the Secretary.

                       Innovation and Improvement

    For an additional amount for ``Innovation and Improvement'' 
to carry out subpart 1, part D of title V of the Elementary and 
Secondary Education Act of 1965 (``ESEA''), $200,000,000: 
Provided, That these funds shall be expended as directed in the 
fifth, sixth, and seventh provisos under the heading 
``Innovation and Improvement'' in the Department of Education 
Appropriations Act, 2008: Provided further, That a portion of 
these funds shall also be used for a rigorous national 
evaluation by the Institute of Education Sciences, utilizing 
randomized controlled methodology to the extent feasible, that 
assesses the impact of performance-based teacher and principal 
compensation systems supported by the funds provided in this 
Act on teacher and principal recruitment and retention in high-
need schools and subjects: Provided further, That the Secretary 
may reserve up to 1 percent of the amount made available under 
this heading for management and oversight of the activities 
supported with those funds.

                           Special Education

    For an additional amount for ``Special Education'' for 
carrying out parts B and C of the Individuals with Disabilities 
Education Act (``IDEA''), $12,200,000,000, of which 
$11,300,000,000 shall be available for section 611 of the IDEA: 
Provided, That if every State, as defined by section 602(31) of 
the IDEA, reaches its maximum allocation under section 
611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, 
such funds shall be proportionally allocated to each State 
subject to the maximum amounts contained in section 611(a)(2) 
of the IDEA: Provided further, That by July 1, 2009, the 
Secretary of Education shall reserve the amount needed for 
grants under section 643(e) of the IDEA, with any remaining 
funds to be allocated in accordance with section 643(c) of the 
IDEA: Provided further, That the total amount for each of 
sections 611(b)(2) and 643(b)(1) of the IDEA, under this and 
all other Acts, for fiscal year 2009, whenever enacted, shall 
be equal to the amounts respectively available for these 
activities under these sections during fiscal year 2008 
increased by the amount of inflation as specified in section 
619(d)(2)(B) of the IDEA: Provided further, That $400,000,000 
shall be available for section 619 of the IDEA and $500,000,000 
shall be available for part C of the IDEA.

            Rehabilitation Services and Disability Research

    For an additional amount for ``Rehabilitation Services and 
Disability Research'' for providing grants to States to carry 
out the Vocational Rehabilitation Services program under part B 
of title I and parts B and C of chapter 1 and chapter 2 of 
title VII of the Rehabilitation Act of 1973, $680,000,000: 
Provided, That $540,000,000 shall be available for part B of 
title I of the Rehabilitation Act: Provided further, That funds 
provided herein shall not be considered in determining the 
amount required to be appropriated under section 100(b)(1) of 
the Rehabilitation Act of 1973 in any fiscal year: Provided 
further, That, notwithstanding section 7(14)(A), the Federal 
share of the costs of vocational rehabilitation services 
provided with the funds provided herein shall be 100 percent: 
Provided further, That $140,000,000 shall be available for 
parts B and C of chapter 1 and chapter 2 of title VII of the 
Rehabilitation Act: Provided further, That $18,200,000 shall be 
for State Grants, $87,500,000 shall be for independent living 
centers, and $34,300,000 shall be for services for older blind 
individuals.

                      Student Financial Assistance

    For an additional amount for ``Student Financial 
Assistance'' to carry out subpart 1 of part A and part C of 
title IV of the Higher Education Act of 1965 (``HEA''), 
$15,840,000,000, which shall remain available through September 
30, 2011: Provided, That $15,640,000,000 shall be available for 
subpart 1 of part A of title IV of the HEA: Provided further, 
That $200,000,000 shall be available for part C of title IV of 
the HEA.
    The maximum Pell Grant for which a student shall be 
eligible during award year 2009-2010 shall be $4,860.

                       Student Aid Administration

    For an additional amount for ``Student Aid Administration'' 
to carry out part D of title I, and subparts 1, 3, and 4 of 
part A, and parts B, C, D, and E of title IV of the Higher 
Education Act of 1965, $60,000,000.

                            Higher Education

    For an additional amount for ``Higher Education'' to carry 
out part A of title II of the Higher Education Act of 1965, 
$100,000,000.

                    Institute of Education Sciences

    For an additional amount for ``Institute of Education 
Sciences'' to carry out section 208 of the Educational 
Technical Assistance Act, $250,000,000, which may be used for 
Statewide data systems that include postsecondary and workforce 
information, of which up to $5,000,000 may be used for State 
data coordinators and for awards to public or private 
organizations or agencies to improve data coordination.

                        Departmental Management

                    office of the inspector general

    For an additional amount for the ``Office of the Inspector 
General'', $14,000,000, which shall remain available through 
September 30, 2012, for salaries and expenses necessary for 
oversight and audit of programs, grants, and projects funded in 
this Act.

                            RELATED AGENCIES

             Corporation for National and Community Service

                           OPERATING EXPENSES

                     (including transfer of funds)

    For an additional amount for ``Operating Expenses'' to 
carry out the Domestic Volunteer Service Act of 1973 (``1973 
Act'') and the National and Community Service Act of 1990 
(``1990 Act''), $160,000,000: Provided, That $89,000,000 of the 
funds made available in this paragraph shall be used to make 
additional awards to existing AmeriCorps grantees and may be 
used to provide adjustments to awards under subtitle C of title 
I of the 1990 Act made prior to September 30, 2010 for which 
the Chief Executive Officer of the Corporation for National and 
Community Service (``CEO'') determines that a waiver of the 
Federal share limitation is warranted under section 2521.70 of 
title 45 of the Code of Federal Regulations: Provided further, 
That of the amount made available in this paragraph, not less 
than $6,000,000 shall be transferred to ``Salaries and 
Expenses'' for necessary expenses relating to information 
technology upgrades, of which up to $800,000 may be used to 
administer the funds provided in this paragraph: Provided 
further, That of the amount provided in this paragraph, not 
less than $65,000,000 shall be for programs under title I, part 
A of the 1973 Act: Provided further, That funds provided in the 
previous proviso shall not be made available in connection with 
cost-share agreements authorized under section 192A(g)(10) of 
the 1990 Act: Provided further, That of the funds available 
under this heading, up to 20 percent of funds allocated to 
grants authorized under section 124(b) of title I, subtitle C 
of the 1990 Act may be used to administer, reimburse, or 
support any national service program under section 129(d)(2) of 
the 1990 Act: Provided further, That, except as provided herein 
and in addition to requirements identified herein, funds 
provided in this paragraph shall be subject to the terms and 
conditions under which funds were appropriated in fiscal year 
2008: Provided further, That the CEO shall provide the 
Committees on Appropriations of the House of Representatives 
and the Senate a fiscal year 2009 operating plan for the funds 
appropriated in this paragraph prior to making any Federal 
obligations of such funds in fiscal year 2009, but not later 
than 90 days after the date of enactment of this Act, and a 
fiscal year 2010 operating plan for such funds prior to making 
any Federal obligations of such funds in fiscal year 2010, but 
not later than November 1, 2009, that detail the allocation of 
resources and the increased number of members supported by the 
AmeriCorps programs: Provided further, That the CEO shall 
provide to the Committees on Appropriations of the House of 
Representatives and the Senate a report on the actual 
obligations, expenditures, and unobligated balances for each 
activity funded under this heading not later than November 1, 
2009, and every 6 months thereafter as long as funding provided 
under this heading is available for obligation or expenditure.

                      Office of Inspector General

    For an additional amount for the ``Office of Inspector 
General'', $1,000,000, which shall remain available until 
September 30, 2012.

                         National Service Trust

                     (including transfer of funds)

    For an additional amount for ``National Service Trust'' 
established under subtitle D of title I of the National and 
Community Service Act of 1990 (``1990 Act''), $40,000,000, 
which shall remain available until expended: Provided, That the 
Corporation for National and Community Service may transfer 
additional funds from the amount provided within ``Operating 
Expenses'' for grants made under subtitle C of title I of the 
1990 Act to this appropriation upon determination that such 
transfer is necessary to support the activities of national 
service participants and after notice is transmitted to the 
Committees on Appropriations of the House of Representatives 
and the Senate: Provided further, That the amount appropriated 
for or transferred to the National Service Trust may be 
invested under section 145(b) of the 1990 Act without regard to 
the requirement to apportion funds under 31 U.S.C. 1513(b).

                     Social Security Administration

                 LIMITATION ON ADMINISTRATIVE EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Limitation on Administrative 
Expenses'', $1,000,000,000 shall be available as follows:
            (1) $500,000,000 shall remain available until 
        expended for necessary expenses of the replacement of 
        the National Computer Center and the information 
        technology costs associated with such Center: Provided, 
        That the Commissioner of Social Security shall notify 
        the Committees on Appropriations of the House of 
        Representatives and the Senate not later than 10 days 
        prior to each public notice soliciting bids related to 
        site selection and construction and prior to the lease 
        or purchase of such site: Provided further, That the 
        construction plan and site selection for such center 
        shall be subject to review and approval by the Office 
        of Management and Budget: Provided further, That such 
        center shall continue to be a government-operated 
        facility; and
            (2) $500,000,000 for processing disability and 
        retirement workloads, including information technology 
        acquisitions and research in support of such 
        activities: Provided, That up to $40,000,000 may be 
        used by the Commissioner of Social Security for health 
        information technology research and activities to 
        facilitate the adoption of electronic medical records 
        in disability claims, including the transfer of funds 
        to ``Supplemental Security Income Program'' to carry 
        out activities under section 1110 of the Social 
        Security Act.

                      Office of Inspector General

    For an additional amount for the ``Office of Inspector 
General'', $2,000,000, which shall remain available through 
September 30, 2012, for salaries and expenses necessary for 
oversight and audit of programs, projects, and activities 
funded in this Act.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 801. (a) Up to 1 percent of the funds made available 
to the Department of Labor in this title may be used for the 
administration, management, and oversight of the programs, 
grants, and activities funded by such appropriation, including 
the evaluation of the use of such funds.
    (b) Funds designated for these purposes may be available 
for obligation through September 30, 2010.
    (c) Not later than 30 days after enactment of this Act, the 
Secretary of Labor shall provide an operating plan describing 
the proposed use of funds for the purposes described in 
subsection (a).
    Sec. 802.  Report on the Impact of Past and Future Minimum 
Wage Increases.  (a) In General.--Section 8104 of the U.S. 
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Public Law 110-28; 121 
Stat. 189) is amended to read as follows:

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

    ``(a) Study.--Beginning on the date that is 60 days after 
the date of enactment of this Act, and every year thereafter 
until the minimum wage in the respective territory is $7.25 per 
hour, the Government Accountability Office shall conduct a 
study to--
            ``(1) assess the impact of the minimum wage 
        increases that occurred in American Samoa and the 
        Commonwealth of the Northern Mariana Islands in 2007 
        and 2008, as required under Public Law 110-28, on the 
        rates of employment and the living standards of 
        workers, with full consideration of the other factors 
        that impact rates of employment and the living 
        standards of workers such as inflation in the cost of 
        food, energy, and other commodities; and
            ``(2) estimate the impact of any further wage 
        increases on rates of employment and the living 
        standards of workers in American Samoa and the 
        Commonwealth of the Northern Mariana Islands, with full 
        consideration of the other factors that may impact the 
        rates of employment and the living standards of 
        workers, including assessing how the profitability of 
        major private sector firms may be impacted by wage 
        increases in comparison to other factors such as energy 
        costs and the value of tax benefits.
    ``(b) Report.--No earlier than March 15, 2010, and not 
later than April 15, 2010, the Government Accountability Office 
shall transmit its first report to Congress concerning the 
findings of the study required under subsection (a). The 
Government Accountability Office shall transmit any subsequent 
reports to Congress concerning the findings of a study required 
by subsection (a) between March 15 and April 15 of each year.
    ``(c) Economic Information.--To provide sufficient economic 
data for the conduct of the study under subsection (a) the 
Bureau of the Census of the Department of Commerce shall 
include and separately report on American Samoa, the 
Commonwealth of the Northern Mariana Islands, Guam, and the 
Virgin Islands in its County Business Patterns data with the 
same regularity and to the same extent as each Bureau collects 
and reports such data for the 50 States. In the event that the 
inclusion of American Samoa, the Commonwealth of the Northern 
Mariana Islands, Guam, and the Virgin Islands in such surveys 
and data compilations requires time to structure and implement, 
the Bureau of the Census shall in the interim annually report 
the best available data that can feasibly be secured with 
respect to such territories. Such interim report shall describe 
the steps the Bureau will take to improve future data 
collection in the territories to achieve comparability with the 
data collected in the United States. The Bureau of the Census, 
together with the Department of the Interior, shall coordinate 
their efforts to achieve such improvements.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of enactment of this Act.
    Sec. 803.  Eligible Employees in the Recreational Marine 
Industry.--Section 2(3)(F) of the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 902(3)(F)) is amended--
            (1) by striking ``, repair or dismantle''; and
            (2) by striking the semicolon and inserting ``, or 
        individuals employed to repair any recreational vessel, 
        or to dismantle any part of a recreational vessel in 
        connection with the repair of such vessel;''.
    Sec. 804. Federal Coordinating Council for Comparative 
Effectiveness Research. (a) Establishment.--There is hereby 
established a Federal Coordinating Council for Comparative 
Effectiveness Research (in this section referred to as the 
``Council'').
    (b) Purpose.--The Council shall foster optimum coordination 
of comparative effectiveness and related health services 
research conducted or supported by relevant Federal departments 
and agencies, with the goal of reducing duplicative efforts and 
encouraging coordinated and complementary use of resources.
    (c) Duties.--The Council shall--
            (1) assist the offices and agencies of the Federal 
        Government, including the Departments of Health and 
        Human Services, Veterans Affairs, and Defense, and 
        other Federal departments or agencies, to coordinate 
        the conduct or support of comparative effectiveness and 
        related health services research; and
            (2) advise the President and Congress on--
                    (A) strategies with respect to the 
                infrastructure needs of comparative 
                effectiveness research within the Federal 
                Government; and
                    (B) organizational expenditures for 
                comparative effectiveness research by relevant 
                Federal departments and agencies.
    (d) Membership.--
            (1) Number and appointment.--The Council shall be 
        composed of not more than 15 members, all of whom are 
        senior Federal officers or employees with 
        responsibility for health-related programs, appointed 
        by the President, acting through the Secretary of 
        Health and Human Services (in this section referred to 
        as the ``Secretary''). Members shall first be appointed 
        to the Council not later than 30 days after the date of 
        the enactment of this Act.
            (2) Members.--
                    (A) In general.--The members of the Council 
                shall include one senior officer or employee 
                from each of the following agencies:
                            (i) The Agency for Healthcare 
                        Research and Quality.
                            (ii) The Centers for Medicare and 
                        Medicaid Services.
                            (iii) The National Institutes of 
                        Health.
                            (iv) The Office of the National 
                        Coordinator for Health Information 
                        Technology.
                            (v) The Food and Drug 
                        Administration.
                            (vi) The Veterans Health 
                        Administration within the Department of 
                        Veterans Affairs.
                            (vii) The office within the 
                        Department of Defense responsible for 
                        management of the Department of Defense 
                        Military Health Care System.
                    (B) Qualifications.--At least half of the 
                members of the Council shall be physicians or 
                other experts with clinical expertise.
            (3) Chairman; vice chairman.--The Secretary shall 
        serve as Chairman of the Council and shall designate a 
        member to serve as Vice Chairman.
    (e) Reports.--
            (1) Initial report.--Not later than June 30, 2009, 
        the Council shall submit to the President and the 
        Congress a report containing information describing 
        current Federal activities on comparative effectiveness 
        research and recommendations for such research 
        conducted or supported from funds made available for 
        allotment by the Secretary for comparative 
        effectiveness research in this Act.
            (2) Annual report.--The Council shall submit to the 
        President and Congress an annual report regarding its 
        activities and recommendations concerning the 
        infrastructure needs, organizational expenditures and 
        opportunities for better coordination of comparative 
        effectiveness research by relevant Federal departments 
        and agencies.
    (f) Staffing; Support.--From funds made available for 
allotment by the Secretary for comparative effectiveness 
research in this Act, the Secretary shall make available not 
more than 1 percent to the Council for staff and administrative 
support.
    (g) Rules of Construction.--
            (1) Coverage.--Nothing in this section shall be 
        construed to permit the Council to mandate coverage, 
        reimbursement, or other policies for any public or 
        private payer.
            (2) Reports and recommendations.--None of the 
        reports submitted under this section or recommendations 
        made by the Council shall be construed as mandates or 
        clinical guidelines for payment, coverage, or 
        treatment.
    Sec. 805. Grants for Impact Aid Construction. (a) 
Reservation for Management and Oversight.--From the funds 
appropriated to carry out this section, the Secretary may 
reserve up to 1 percent for management and oversight of the 
activities carried out with those funds.
    (b) Construction Payments.--
            (1) Formula grants.--
                    (A) In general.--From 40 percent of the 
                amount not reserved under subsection (a), the 
                Secretary shall make payments in accordance 
                with section 8007(a) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                7707(a)), except that the amount of such 
                payments shall be determined in accordance with 
                subparagraph (B).
                    (B) Amount of payments.--The Secretary 
                shall make a payment to each local educational 
                agency eligible for a payment under section 
                8007(a) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7707(a)) in an 
                amount that bears the same relationship to the 
                funds made available under subparagraph (A) as 
                the number of children determined under 
                subparagraphs (B), (C), and (D)(i) of section 
                8003(a)(1) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), 
                (C), and (D)(i)) who were in average daily 
                attendance in the local educational agency for 
                the most recent year for which such information 
                is available bears to the number of such 
                children in all the local educational agencies 
                eligible for a payment under section 8007(a) of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 7707(a)).
            (2) Competitive grants.--From 60 percent of the 
        amount not reserved under subsection (a), the 
        Secretary--
                    (A) shall award emergency grants in 
                accordance with section 8007(b) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7707(b)) to eligible local 
                educational agencies to enable the agencies to 
                carry out emergency repairs of school 
                facilities; and
                    (B) may award modernization grants in 
                accordance with section 8007(b) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7707(b)) to eligible local 
                educational agencies to enable the agencies to 
                carry out the modernization of school 
                facilities.
            (3) Provisions not to apply.--Paragraphs (2), (3), 
        (4), (5)(A)(i), and (5)(A)(vi) of section 8007(b) of 
        the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7707(b)(2), (3), (4), (5)(A)(i), and (5)(A)(vi)) 
        shall not apply to grants made under paragraph (2).
            (4) Eligibility.--A local educational agency is 
        eligible to receive a grant under paragraph (2) if the 
        local educational agency--
                    (A) was eligible to receive a payment under 
                section 8002 or 8003 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7702 
                and 7703) for fiscal year 2008; and
                    (B) has--
                            (i) a total taxable assessed value 
                        of real property that may be taxed for 
                        school purposes of less than 
                        $100,000,000; or
                            (ii) an assessed value of real 
                        property per student that may be taxed 
                        for school purposes that is less than 
                        the average of the assessed value of 
                        real property per student that may be 
                        taxed for school purposes in the State 
                        in which the local educational agency 
                        is located.
            (5) Criteria for grants.--In awarding grants under 
        paragraph (2), the Secretary shall consider the 
        following criteria:
                    (A) Whether the facility poses a health or 
                safety threat to students and school personnel, 
                including noncompliance with building codes and 
                inaccessibility for persons with disabilities, 
                or whether the existing building capacity meets 
                the needs of the current enrollment and 
                supports the provision of comprehensive 
                educational services to meet current standards 
                in the State in which the local educational 
                agency is located.
                    (B) The extent to which the new design and 
                proposed construction utilize energy efficient 
                and recyclable materials.
                    (C) The extent to which the new design and 
                proposed construction utilizes non-traditional 
                or alternative building methods to expedite 
                construction and project completion and 
                maximize cost efficiency.
                    (D) The feasibility of project completion 
                within 24 months from award.
                    (E) The availability of other resources for 
                the proposed project.
    Sec. 806. Mandatory Pell Grants.-- Section 401(b)(9)(A) of 
the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is 
amended--
            (1) in clause (ii), by striking ``$2,090,000,000'' 
        and inserting ``$2,733,000,000''; and
            (2) in clause (iii), by striking ``$3,030,000,000'' 
        and inserting ``$3,861,000,000''.
    Sec. 807. (a) In General.--Notwithstanding any other 
provision of law, and in order to begin expenditures and 
activities under this Act as quickly as possible consistent 
with prudent management, the Secretary of Education may--
            (1) award fiscal year 2009 funds to States and 
        local educational agencies on the basis of eligibility 
        determinations made for the award of fiscal year 2008 
        funds; and
            (2) require States to make prompt allocations to 
        local educational agencies.
    (b) Interest Not To Accrue.--Notwithstanding sections 3335 
and 6503 of title 31, United States Code, or any other 
provision of law, the United States shall not be liable to any 
State or other entity for any interest or fee with respect to 
any funds under this Act that are allocated by the Secretary of 
Education to the State or other entity within 30 days of the 
date on which they are available for obligation.

                      TITLE IX--LEGISLATIVE BRANCH

                    GOVERNMENT ACCOUNTABILITY OFFICE

                         Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'' of 
the Government Accountability Office, $25,000,000, to remain 
available until September 30, 2010.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 901.  Government Accountability Office Reviews and 
Reports.  (a) Reviews and Reports.--
            (1) In general.--The Comptroller General shall 
        conduct bimonthly reviews and prepare reports on such 
        reviews on the use by selected States and localities of 
        funds made available in this Act. Such reports, along 
        with any audits conducted by the Comptroller General of 
        such funds, shall be posted on the Internet and linked 
        to the website established under this Act by the 
        Recovery Accountability and Transparency Board.
            (2) Redactions.--Any portion of a report or audit 
        under this subsection may be redacted when made 
        publicly available, if that portion would disclose 
        information that is not subject to disclosure under 
        section 552 of title 5, United States Code (commonly 
        known as the Freedom of Information Act).
    (b) Examination of Records.--The Comptroller General may 
examine any records related to obligations and use by any 
Federal, State, or local government agency of funds made 
available in this Act.
    Sec. 902.  Access of Government Accountability Office. (a) 
Access.--Each contract awarded using funds made available in 
this Act shall provide that the Comptroller General and his 
representatives are authorized--
            (1) to examine any records of the contractor or any 
        of its subcontractors, or any State or local agency 
        administering such contract, that directly pertain to, 
        and involve transactions relating to, the contract or 
        subcontract; and
            (2) to interview any officer or employee of the 
        contractor or any of its subcontractors, or of any 
        State or local government agency administering the 
        contract, regarding such transactions.
    (b) Relationship to Existing Authority.--Nothing in this 
section shall be interpreted to limit or restrict in any way 
any existing authority of the Comptroller General.

          TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

     For an additional amount for ``Military Construction, 
Army'', $180,000,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided 
further, That of the amount provided under this heading, 
$80,000,000 shall be for child development centers, and 
$100,000,000 shall be for warrior transition complexes: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading.

              Military Construction, Navy and Marine Corps

     For an additional amount for ``Military Construction, Navy 
and Marine Corps'', $280,000,000, to remain available until 
September 30, 2013: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction 
projects in the United States not otherwise authorized by law: 
Provided further, That of the amount provided under this 
heading, $100,000,000 shall be for troop housing, $80,000,000 
shall be for child development centers, and $100,000,000 shall 
be for energy conservation and alternative energy projects: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading.

                    Military Construction, Air Force

     For an additional amount for ``Military Construction, Air 
Force'', $180,000,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided 
further, That of the amount provided under this heading, 
$100,000,000 shall be for troop housing and $80,000,000 shall 
be for child development centers: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading.

                  Military Construction, Defense-Wide

    For an additional amount for ``Military Construction, 
Defense-Wide'', $1,450,000,000, to remain available until 
September 30, 2013: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction 
projects in the United States not otherwise authorized by law: 
Provided further, That of the amount provided under this 
heading, $1,330,000,000 shall be for the construction of 
hospitals and $120,000,000 shall be for the Energy Conservation 
Investment Program: Provided further, That not later than 30 
days after the date of enactment of this Act, the Secretary of 
Defense shall submit to the Committees on Appropriations of 
both Houses of Congress an expenditure plan for funds provided 
under this heading.

               Military Construction, Army National Guard

    For an additional amount for ``Military Construction, Army 
National Guard'', $50,000,000, to remain available until 
September 30, 2013: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction 
projects in the United States not otherwise authorized by law: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense, in 
consultation with the Director of the Army National Guard, 
shall submit to the Committees on Appropriations of both Houses 
of Congress an expenditure plan for funds provided under this 
heading.

               Military Construction, Air National Guard

    For an additional amount for ``Military Construction, Air 
National Guard'', $50,000,000, to remain available until 
September 30, 2013: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction 
projects in the United States not otherwise authorized by law: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense, in 
consultation with the Director of the Air National Guard, shall 
submit to the Committees on Appropriations of both Houses of 
Congress an expenditure plan for funds provided under this 
heading.

                   Family Housing Construction, Army

    For an additional amount for ``Family Housing Construction, 
Army'', $34,507,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided 
further, That within 30 days of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading.

             Family Housing Operation and Maintenance, Army

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

                 Family Housing Construction, Air Force

    For an additional amount for ``Family Housing Construction, 
Air Force'', $80,100,000, to remain available until September 
30, 2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided 
further, That within 30 days of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading.

          Family Housing Operation and Maintenance, Air Force

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

                       Homeowners Assistance Fund

    For an additional amount for ``Homeowners Assistance 
Fund'', established by section 1013 of the Demonstration Cities 
and Metropolitan Development Act of 1966, as amended (42 U.S.C. 
3374), $555,000,000, to remain available until expended: 
Provided, That the Secretary of Defense shall submit quarterly 
reports to the Committees on Appropriations of both Houses of 
Congress on the expenditure of funds made available under this 
heading in this or any other Act.

                        Administrative Provision

    Sec. 1001. (a) Temporary Expansion of Homeowners Assistance 
Program to Respond to Mortgage Foreclosure and Credit Crisis.-- 
Section 1013 of the Demonstration Cities and Metropolitan 
Development Act of 1966 (42 U.S.C. 3374) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), 
                and (3) as clauses (i), (ii), and (iii), 
                respectively, and indenting such subparagraphs, 
                as so redesignated, 6 ems from the left margin;
                    (B) by striking ``Notwithstanding any other 
                provision of law'' and inserting the following:
            ``(1) Acquisition of property at or near military 
        installations that have been ordered to be closed.--
        Notwithstanding any other provision of law'';
                    (C) by striking ``if he determines'' and 
                inserting ``if--
                    ``(A) the Secretary determines--'';
                    (D) in clause (iii), as redesignated by 
                subparagraph (A), by striking the period at the 
                end and inserting ``; or''; and
                    (E) by adding at the end the following:
                    ``(B) the Secretary determines--
                            ``(i) that the conditions in 
                        clauses (i) and (ii) of subparagraph 
                        (A) have been met;
                            ``(ii) that the closing or 
                        realignment of the base or installation 
                        resulted from a realignment or closure 
                        carried out under the 2005 round of 
                        defense base closure and realignment 
                        under the Defense Base Closure and 
                        Realignment Act of 1990 (part XXIX of 
                        Public Law 101-510; 10 U.S.C. 2687 
                        note);
                            ``(iii) that the property was 
                        purchased by the owner before July 1, 
                        2006;
                            ``(iv) that the property was sold 
                        by the owner between July 1, 2006, and 
                        September 30, 2012, or an earlier end 
                        date designated by the Secretary;
                            ``(v) that the property is the 
                        primary residence of the owner; and
                            ``(vi) that the owner has not 
                        previously received benefit payments 
                        authorized under this subsection.
            ``(2) Homeowner assistance for wounded members of 
        the armed forces, department of defense and united 
        states coast guard civilian employees, and their 
        spouses.--Notwithstanding any other provision of law, 
        the Secretary of Defense is authorized to acquire title 
        to, hold, manage, and dispose of, or, in lieu thereof, 
        to reimburse for certain losses upon private sale of, 
        or foreclosure against, any property improved with a 
        one- or two-family dwelling which was at the time of 
        the relevant wound, injury, or illness, the primary 
        residence of--
                    ``(A) any member of the Armed Forces in 
                medical transition who--
                            ``(i) incurred a wound, injury, or 
                        illness in the line of duty during a 
                        deployment in support of the Armed 
                        Forces;
                            ``(ii) is disabled to a degree of 
                        30 percent or more as a result of such 
                        wound, injury, or illness, as 
                        determined by the Secretary of Defense; 
                        and
                            ``(iii) is reassigned in 
                        furtherance of medical treatment or 
                        rehabilitation, or due to medical 
                        retirement in connection with such 
                        disability;
                    ``(B) any civilian employee of the 
                Department of Defense or the United States 
                Coast Guard who--
                            ``(i) was wounded, injured, or 
                        became ill in the performance of his or 
                        her duties during a forward deployment 
                        occurring on or after September 11, 
                        2001, in support of the Armed Forces; 
                        and
                            ``(ii) is reassigned in furtherance 
                        of medical treatment, rehabilitation, 
                        or due to medical retirement resulting 
                        from the sustained disability; or
                    ``(C) the spouse of a member of the Armed 
                Forces or a civilian employee of the Department 
                of Defense or the United States Coast Guard 
                if--
                            ``(i) the member or employee was 
                        killed in the line of duty or in the 
                        performance of his or her duties during 
                        a deployment on or after September 11, 
                        2001, in support of the Armed Forces or 
                        died from a wound, injury, or illness 
                        incurred in the line of duty during 
                        such a deployment; and
                            ``(ii) the spouse relocates from 
                        such residence within 2 years after the 
                        death of such member or employee.
            ``(3) Temporary homeowner assistance for members of 
        the armed forces permanently reassigned during 
        specified mortgage crisis.--Notwithstanding any other 
        provision of law, the Secretary of Defense is 
        authorized to acquire title to, hold, manage, and 
        dispose of, or, in lieu thereof, to reimburse for 
        certain losses upon private sale of, or foreclosure 
        against, any property improved with a one- or two-
        family dwelling situated at or near a military base or 
        installation, if the Secretary determines--
                    ``(A) that the owner is a member of the 
                Armed Forces serving on permanent assignment;
                    ``(B) that the owner is permanently 
                reassigned by order of the United States 
                Government to a duty station or home port 
                outside a 50-mile radius of the base or 
                installation;
                    ``(C) that the reassignment was ordered 
                between February 1, 2006, and September 30, 
                2012, or an earlier end date designated by the 
                Secretary;
                    ``(D) that the property was purchased by 
                the owner before July 1, 2006;
                    ``(E) that the property was sold by the 
                owner between July 1, 2006, and September 30, 
                2012, or an earlier end date designated by the 
                Secretary;
                    ``(F) that the property is the primary 
                residence of the owner; and
                    ``(G) that the owner has not previously 
                received benefit payments authorized under this 
                subsection.'';
            (2) in subsection (b), by striking ``this section'' 
        each place it appears and inserting ``subsection 
        (a)(1)'';
            (3) in subsection (c)--
                    (A) by striking ``Such persons'' and 
                inserting the following:
            ``(1) Homeowner assistance related to closed 
        military installations.--
                    ``(A) In general.--Such persons'';
                    (B) by striking ``set forth above shall 
                elect either (1) to receive'' and inserting the 
                following: ``set forth in subsection (a)(1) 
                shall elect either--
                            ``(i) to receive'';
                    (C) by striking ``difference between (A) 95 
                per centum'' and all that follows through ``(B) 
                the fair market value'' and inserting the 
                following: ``difference between--
                                    ``(I) 95 per centum of the 
                                fair market value of their 
                                property (as such value is 
                                determined by the Secretary of 
                                Defense) prior to public 
                                announcement of intention to 
                                close all or part of the 
                                military base or installation; 
                                and
                                    ``(II) the fair market 
                                value'';
                    (D) by striking ``time of the sale, or (2) 
                to receive'' and inserting the following: 
                ``time of the sale; or
                            ``(ii) to receive'';
                    (E) by striking ``outstanding mortgages. 
                The Secretary may also pay a person who elects 
                to receive a cash payment under clause (1) of 
                the preceding sentence an amount'' and 
                inserting ``outstanding mortgages.
                    ``(B) Reimbursement of expenses.--The 
                Secretary may also pay a person who elects to 
                receive a cash payment under subparagraph (A) 
                an amount''; and
                    (F) by striking ``best interest of the 
                Federal Government. Cash payment'' and 
                inserting the following: ``best interest of the 
                United States.
            ``(2) Homeowner assistance for wounded individuals 
        and their spouses.--
                    ``(A) In general.--Persons eligible under 
                the criteria set forth in subsection (a)(2) may 
                elect either--
                            ``(i) to receive a cash payment as 
                        compensation for losses which may be or 
                        have been sustained in a private sale, 
                        in an amount not to exceed the 
                        difference between--
                                    ``(I) 95 per centum of 
                                prior fair market value of 
                                their property (as such value 
                                is determined by the Secretary 
                                of Defense); and
                                    ``(II) the fair market 
                                value of such property (as such 
                                value is determined by the 
                                Secretary of Defense) at the 
                                time of sale; or
                            ``(ii) to receive, as purchase 
                        price for their property an amount not 
                        to exceed 90 per centum of prior fair 
                        market value as such value is 
                        determined by the Secretary of Defense, 
                        or the amount of the outstanding 
                        mortgages.
                    ``(B) Determination of benefits.--The 
                Secretary may also pay a person who elects to 
                receive a cash payment under subparagraph (A) 
                an amount that the Secretary determines 
                appropriate to reimburse the person for the 
                costs incurred by the person in the sale of the 
                property if the Secretary determines that such 
                payment will benefit the person and is in the 
                best interest of the United States.
            ``(3) Homeowner assistance for permanently 
        reassigned individuals.--
                    ``(A) In general.--Persons eligible under 
                the criteria set forth in subsection (a)(3) may 
                elect either--
                            ``(i) to receive a cash payment as 
                        compensation for losses which may be or 
                        have been sustained in a private sale, 
                        in an amount not to exceed the 
                        difference between--
                                    ``(I) 95 per centum of 
                                prior fair market value of 
                                their property (as such value 
                                is determined by the Secretary 
                                of Defense); and
                                    ``(II) the fair market 
                                value of such property (as such 
                                value is determined by the 
                                Secretary of Defense) at the 
                                time of sale; or
                            ``(ii) to receive, as purchase 
                        price for their property an amount not 
                        to exceed 90 per centum of prior fair 
                        market value as such value is 
                        determined by the Secretary of Defense, 
                        or the amount of the outstanding 
                        mortgages.
                    ``(B) Determination of benefits.--The 
                Secretary may also pay a person who elects to 
                receive a cash payment under subparagraph (A) 
                an amount that the Secretary determines 
                appropriate to reimburse the person for the 
                costs incurred by the person in the sale of the 
                property if the Secretary determines that such 
                payment will benefit the person and is in the 
                best interest of the United States.
            ``(4) Compensation and limitations related to 
        foreclosures and encumbrances.--Cash payment'';
            (4) by striking subsection (g);
            (5) in subsection (l), by striking ``(a)(2)'' and 
        inserting ``(a)(1)(A)(ii)'';
            (6) in subsection (m), by striking ``this section'' 
        and inserting ``subsection (a)(1)'';
            (7) in subsection (n)--
                    (A) in paragraph (1), by striking ``this 
                section'' and inserting ``subsection (a)(1)''; 
                and
                    (B) in paragraph (2), by striking ``this 
                section'' and inserting ``subsection (a)(1)'';
            (8) in subsection (o)--
                    (A) in paragraph (1), by striking ``this 
                section'' and inserting ``subsection (a)(1)'';
                    (B) in paragraph (2), by striking ``this 
                section'' and inserting ``subsection (a)(1)''; 
                and
                    (C) by striking paragraph (4); and
            (9) by adding at the end the following new 
        subsection:
    ``(p) Definitions.--In this section:
            ``(1) the term `Armed Forces' has the meaning given 
        the term `armed forces' in section 101(a) of title 10, 
        United States Code;
            ``(2) the term `civilian employee' has the meaning 
        given the term `employee' in section 2105(a) of title 
        5, United States Code;
            ``(3) the term `medical transition', in the case of 
        a member of the Armed Forces, means a member who--
                    ``(A) is in Medical Holdover status;
                    ``(B) is in Active Duty Medical Extension 
                status;
                    ``(C) is in Medical Hold status;
                    ``(D) is in a status pending an evaluation 
                by a medical evaluation board;
                    ``(E) has a complex medical need requiring 
                six or more months of medical treatment; or
                    ``(F) is assigned or attached to an Army 
                Warrior Transition Unit, an Air Force Patient 
                Squadron, a Navy Patient Multidisciplinary Care 
                Team, or a Marine Patient Affairs Team/Wounded 
                Warrior Regiment; and
            ``(4) the term `nonappropriated fund 
        instrumentality employee' means a civilian employee 
        who--
                    ``(A) is a citizen of the United States; 
                and
                    ``(B) is paid from nonappropriated funds of 
                Army and Air Force Exchange Service, Navy 
                Resale and Services Support Office, Marine 
                Corps exchanges, or any other instrumentality 
                of the United States under the jurisdiction of 
                the Armed Forces which is conducted for the 
                comfort, pleasure, contentment, or physical or 
                mental improvement of members of the Armed 
                Forces.''.
    (b) Clerical Amendment.--Such section is further amended in 
the section heading by inserting ``and certain property owned 
by members of the Armed Forces, Department of Defense and 
United States Coast Guard civilian employees, and surviving 
spouses'' after ``ordered to be closed''.
    (c) Authority To Use Appropriated Funds.--Notwithstanding 
subsection (i) of such section, amounts appropriated or 
otherwise made available by this title under the heading 
``Homeowners Assistance Fund'' may be used for the Homeowners 
Assistance Fund established under such section.

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration

                           medical facilities

     For an additional amount for ``Medical Facilities'' for 
non-recurring maintenance, including energy projects, 
$1,000,000,000, to remain available until September 30, 2010: 
Provided, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committees on Appropriations of both Houses of 
Congress an expenditure plan for funds provided under this 
heading.

                    National Cemetery Administration

    For an additional amount for ``National Cemetery 
Administration'' for monument and memorial repairs, including 
energy projects, $50,000,000, to remain available until 
September 30, 2010: Provided, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Veterans 
Affairs shall submit to the Committees on Appropriations of 
both Houses of Congress an expenditure plan for funds provided 
under this heading.

                      Departmental Administration

                       general operating expenses

    For an additional amount for ``General Operating 
Expenses'', $150,000,000, to remain available until September 
30, 2010, for additional expenses related to hiring and 
training temporary surge claims processors.

                     information technology systems

    For an additional amount for ``Information Technology 
Systems'', $50,000,000, to remain available until September 30, 
2010, for the Veterans Benefits Administration: Provided, That 
not later than 30 days after the enactment of this Act, the 
Secretary of Veterans Affairs shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading.

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'', $1,000,000, to remain available until September 30, 
2011, for oversight and audit of programs, grants and projects 
funded under this title.

       grants for construction of state extended care facilities

    For an additional amount for ``Grants for Construction of 
State Extended Care Facilities'', $150,000,000, to remain 
available until September 30, 2010, for grants to assist States 
to acquire or construct State nursing home and domiciliary 
facilities and to remodel, modify, or alter existing hospital, 
nursing home, and domiciliary facilities in State homes, for 
furnishing care to veterans as authorized by sections 8131 
through 8137 of title 38, United States Code.

                        Administrative Provision

    Sec. 1002.  Payments to Eligible Persons Who Served in the 
United States Armed Forces in the Far East During World War II. 
 (a) Findings.--Congress makes the following findings:
            (1) The Philippine islands became a United States 
        possession in 1898 when they were ceded from Spain 
        following the Spanish-American War.
            (2) During World War II, Filipinos served in a 
        variety of units, some of which came under the direct 
        control of the United States Armed Forces.
            (3) The regular Philippine Scouts, the new 
        Philippine Scouts, the Guerrilla Services, and more 
        than 100,000 members of the Philippine Commonwealth 
        Army were called into the service of the United States 
        Armed Forces of the Far East on July 26, 1941, by an 
        executive order of President Franklin D. Roosevelt.
            (4) Even after hostilities had ceased, wartime 
        service of the new Philippine Scouts continued as a 
        matter of law until the end of 1946, and the force 
        gradually disbanded and was disestablished in 1950.
            (5) Filipino veterans who were granted benefits 
        prior to the enactment of the so-called Rescissions 
        Acts of 1946 (Public Laws 79-301 and 79-391) currently 
        receive full benefits under laws administered by the 
        Secretary of Veterans Affairs, but under section 107 of 
        title 38, United States Code, the service of certain 
        other Filipino veterans is deemed not to be active 
        service for purposes of such laws.
            (6) These other Filipino veterans only receive 
        certain benefits under title 38, United States Code, 
        and, depending on where they legally reside, are paid 
        such benefit amounts at reduced rates.
            (7) The benefits such veterans receive include 
        service-connected compensation benefits paid under 
        chapter 11 of title 38, United States Code, dependency 
        indemnity compensation survivor benefits paid under 
        chapter 13 of title 38, United States Code, and burial 
        benefits under chapters 23 and 24 of title 38, United 
        States Code, and such benefits are paid to 
        beneficiaries at the rate of $0.50 per dollar 
        authorized, unless they lawfully reside in the United 
        States.
            (8) Dependents' educational assistance under 
        chapter 35 of title 38, United States Code, is also 
        payable for the dependents of such veterans at the rate 
        of $0.50 per dollar authorized, regardless of the 
        veterans' residency.
    (b) Compensation Fund.--
            (1) In general.--There is in the general fund of 
        the Treasury a fund to be known as the ``Filipino 
        Veterans Equity Compensation Fund'' (in this section 
        referred to as the ``compensation fund'').
            (2) Availability of funds.--Subject to the 
        availability of appropriations for such purpose, 
        amounts in the fund shall be available to the Secretary 
        of Veterans Affairs without fiscal year limitation to 
        make payments to eligible persons in accordance with 
        this section.
    (c) Payments.--
            (1) In general.--The Secretary may make a payment 
        from the compensation fund to an eligible person who, 
        during the one-year period beginning on the date of the 
        enactment of this Act, submits to the Secretary a claim 
        for benefits under this section. The application for 
        the claim shall contain such information and evidence 
        as the Secretary may require.
            (2) Payment to surviving spouse.--If an eligible 
        person who has filed a claim for benefits under this 
        section dies before payment is made under this section, 
        the payment under this section shall be made instead to 
        the surviving spouse, if any, of the eligible person.
    (d) Eligible Persons.--An eligible person is any person 
who--
            (1) served--
                    (A) before July 1, 1946, in the organized 
                military forces of the Government of the 
                Commonwealth of the Philippines, while such 
                forces were in the service of the Armed Forces 
                of the United States pursuant to the military 
                order of the President dated July 26, 1941, 
                including among such military forces organized 
                guerrilla forces under commanders appointed, 
                designated, or subsequently recognized by the 
                Commander in Chief, Southwest Pacific Area, or 
                other competent authority in the Army of the 
                United States; or
                    (B) in the Philippine Scouts under section 
                14 of the Armed Forces Voluntary Recruitment 
                Act of 1945 (59 Stat. 538); and
            (2) was discharged or released from service 
        described in paragraph (1) under conditions other than 
        dishonorable.
    (e) Payment Amounts.--Each payment under this section shall 
be--
            (1) in the case of an eligible person who is not a 
        citizen of the United States, in the amount of $9,000; 
        and
            (2) in the case of an eligible person who is a 
        citizen of the United States, in the amount of $15,000.
    (f) Limitation.--The Secretary may not make more than one 
payment under this section for each eligible person described 
in subsection (d).
    (g) Clarification of Treatment of Payments Under Certain 
Laws.--Amounts paid to a person under this section--
            (1) shall be treated for purposes of the internal 
        revenue laws of the United States as damages for human 
        suffering; and
            (2) shall not be included in income or resources 
        for purposes of determining--
                    (A) eligibility of an individual to receive 
                benefits described in section 3803(c)(2)(C) of 
                title 31, United States Code, or the amount of 
                such benefits;
                    (B) eligibility of an individual to receive 
                benefits under title VIII of the Social 
                Security Act, or the amount of such benefits; 
                or
                    (C) eligibility of an individual for, or 
                the amount of benefits under, any other Federal 
                or federally assisted program.
    (h) Release.--
            (1) In general.--Except as provided in paragraph 
        (2), the acceptance by an eligible person or surviving 
        spouse, as applicable, of a payment under this section 
        shall be final, and shall constitute a complete release 
        of any claim against the United States by reason of any 
        service described in subsection (d).
            (2) Payment of prior eligibility status.--Nothing 
        in this section shall prohibit a person from receiving 
        any benefit (including health care, survivor, or burial 
        benefits) which the person would have been eligible to 
        receive based on laws in effect as of the day before 
        the date of the enactment of this Act.
    (i) Recognition of Service.--The service of a person as 
described in subsection (d) is hereby recognized as active 
military service in the Armed Forces for purposes of, and to 
the extent provided in, this section.
    (j) Administration.--
            (1) The Secretary shall promptly issue application 
        forms and instructions to ensure the prompt and 
        efficient administration of the provisions of this 
        section.
            (2) The Secretary shall administer the provisions 
        of this section in a manner consistent with applicable 
        provisions of title 38, United States Code, and other 
        provisions of law, and shall apply the definitions in 
        section 101 of such title in the administration of such 
        provisions, except to the extent otherwise provided in 
        this section.
    (k) Reports.--The Secretary shall include, in documents 
submitted to Congress by the Secretary in support of the 
President's budget for each fiscal year, detailed information 
on the operation of the compensation fund, including the number 
of applicants, the number of eligible persons receiving 
benefits, the amounts paid out of the compensation fund, and 
the administration of the compensation fund for the most recent 
fiscal year for which such data is available.
    (l) Authorization of Appropriation.--There is authorized to 
be appropriated to the compensation fund $198,000,000, to 
remain available until expended, to make payments under this 
section.

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

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

    For an additional amount for ``Diplomatic and Consular 
Programs'' for urgent domestic facilities requirements for 
passport and training functions, $90,000,000: Provided, That 
the Secretary of State shall submit to the Committees on 
Appropriations within 90 days of enactment of this Act a 
detailed spending plan for funds appropriated under this 
heading: Provided further, That with respect to the funds made 
available for passport agencies, such plan shall be developed 
in consultation with the Department of Homeland Security and 
the General Services Administration and shall coordinate and 
co-locate, to the extent feasible, passport agencies with other 
Federal facilities.

                        capital investment fund

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Capital Investment Fund'', 
$290,000,000, for information technology security and upgrades 
to support mission-critical operations, of which up to 
$38,000,000 shall be transferred to, and merged with, funds 
made available under the heading ``Capital Investment Fund'' of 
the United States Agency for International Development: 
Provided, That the Secretary of State and the Administrator of 
the United States Agency for International Development shall 
coordinate information technology systems, where appropriate, 
to increase efficiencies and eliminate redundancies, to include 
co-location of backup information management facilities, and 
shall submit to the Committees on Appropriations within 90 days 
of enactment of this Act a detailed spending plan for funds 
appropriated under this heading.

                      office of inspector general

    For an additional amount for ``Office of Inspector 
General'' for oversight requirements, $2,000,000.

                       International Commissions

 INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO

                              CONSTRUCTION

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Construction'' for the water 
quantity program to meet immediate repair and rehabilitation 
requirements, $220,000,000: Provided, That up to $2,000,000 may 
be transferred to, and merged with, funds available under the 
heading ``International Boundary and Water Commission, United 
States and Mexico--Salaries and Expenses'': Provided further, 
That the Secretary of State shall submit to the Committees on 
Appropriations within 90 days of enactment of this Act a 
detailed spending plan for funds appropriated under this 
heading.

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

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

SUPPLEMENTAL DISCRETIONARY GRANTS FOR A NATIONAL SURFACE TRANSPORTATION 
                                 SYSTEM

    For an additional amount for capital investments in surface 
transportation infrastructure, $1,500,000,000, to remain 
available through September 30, 2011: Provided, That the 
Secretary of Transportation shall distribute funds provided 
under this heading as discretionary grants to be awarded to 
State and local governments or transit agencies on a 
competitive basis for projects that will have a significant 
impact on the Nation, a metropolitan area, or a region: 
Provided further, That projects eligible for funding provided 
under this heading shall include, but not be limited to, 
highway or bridge projects eligible under title 23, United 
States Code, including interstate rehabilitation, improvements 
to the rural collector road system, the reconstruction of 
overpasses and interchanges, bridge replacements, seismic 
retrofit projects for bridges, and road realignments; public 
transportation projects eligible under chapter 53 of title 49, 
United States Code, including investments in projects 
participating in the New Starts or Small Starts programs that 
will expedite the completion of those projects and their entry 
into revenue service; passenger and freight rail transportation 
projects; and port infrastructure investments, including 
projects that connect ports to other modes of transportation 
and improve the efficiency of freight movement: Provided 
further, That of the amount made available under this 
paragraph, the Secretary may use an amount not to exceed 
$200,000,000 for the purpose of paying the subsidy and 
administrative costs of projects eligible for federal credit 
assistance under chapter 6 of title 23, United States Code, if 
the Secretary finds that such use of the funds would advance 
the purposes of this paragraph: Provided further, That in 
distributing funds provided under this heading, the Secretary 
shall take such measures so as to ensure an equitable 
geographic distribution of funds and an appropriate balance in 
addressing the needs of urban and rural communities: Provided 
further, That a grant funded under this heading shall be not 
less than $20,000,000 and not greater than $300,000,000: 
Provided further, That the Secretary may waive the minimum 
grant size cited in the preceding proviso for the purpose of 
funding significant projects in smaller cities, regions, or 
States: Provided further, That not more than 20 percent of the 
funds made available under this paragraph may be awarded to 
projects in a single State: Provided further, That the Federal 
share of the costs for which an expenditure is made under this 
heading may be up to 100 percent: Provided further, That the 
Secretary shall give priority to projects that require a 
contribution of Federal funds in order to complete an overall 
financing package, and to projects that are expected to be 
completed within 3 years of enactment of this Act: Provided 
further, That the Secretary shall publish criteria on which to 
base the competition for any grants awarded under this heading 
not later than 90 days after enactment of this Act: Provided 
further, That the Secretary shall require applications for 
funding provided under this heading to be submitted not later 
than 180 days after the publication of such criteria, and 
announce all projects selected to be funded from such funds not 
later than 1 year after enactment of this Act: Provided 
further, That projects conducted using funds provided under 
this heading must comply with the requirements of subchapter IV 
of chapter 31 of title 40, United States Code: Provided 
further, That the Secretary may retain up to $1,500,000 of the 
funds provided under this heading, and may transfer portions of 
those funds to the Administrators of the Federal Highway 
Administration, the Federal Transit Administration, the Federal 
Railroad Administration and the Maritime Administration, to 
fund the award and oversight of grants made under this heading.

                    Federal Aviation Administration

           supplemental funding for facilities and equipment

    For an additional amount for necessary investments in 
Federal Aviation Administration infrastructure, $200,000,000, 
to remain available through September 30, 2010: Provided, That 
funding provided under this heading shall be used to make 
improvements to power systems, air route traffic control 
centers, air traffic control towers, terminal radar approach 
control facilities, and navigation and landing equipment: 
Provided further, That priority be given to such projects or 
activities that will be completed within 2 years of enactment 
of this Act: Provided further, That amounts made available 
under this heading may be provided through grants in addition 
to the other instruments authorized under section 106(l)(6) of 
title 49, United States Code: Provided further, That the 
Federal share of the costs for which an expenditure is made 
under this heading shall be 100 percent: Provided further, That 
amounts provided under this heading may be used for expenses 
the agency incurs in administering this program: Provided 
further, That not more than 60 days after enactment of this 
Act, the Administrator shall establish a process for applying, 
reviewing and awarding grants and cooperative and other 
transaction agreements, including the form and content of an 
application, and requirements for the maintenance of records 
that are necessary to facilitate an effective audit of the use 
of the funding provided: Provided further, That section 50101 
of title 49, United States Code, shall apply to funds provided 
under this heading.

                       GRANTS-IN-AID FOR AIRPORTS

    For an additional amount for ``Grants-In-Aid for 
Airports'', to enable the Secretary of Transportation to make 
grants for discretionary projects as authorized by subchapter 1 
of chapter 471 and subchapter 1 of chapter 475 of title 49, 
United States Code, and for the procurement, installation and 
commissioning of runway incursion prevention devices and 
systems at airports of such title, $1,100,000,000, to remain 
available through September 30, 2010: Provided, That such funds 
shall not be subject to apportionment formulas, special 
apportionment categories, or minimum percentages under chapter 
471: Provided further, That the Secretary shall distribute 
funds provided under this heading as discretionary grants to 
airports, with priority given to those projects that 
demonstrate to his satisfaction their ability to be completed 
within 2 years of enactment of this Act, and serve to 
supplement and not supplant planned expenditures from airport-
generated revenues or from other State and local sources on 
such activities: Provided further, That the Secretary shall 
award grants totaling not less than 50 percent of the funds 
made available under this heading within 120 days of enactment 
of this Act, and award grants for the remaining amounts not 
later than 1 year after enactment of this Act: Provided 
further, That the Federal share payable of the costs for which 
a grant is made under this heading shall be 100 percent: 
Provided further, That the amount made available under this 
heading shall not be subject to any limitation on obligations 
for the Grants-in-Aid for Airports program set forth in any 
Act: Provided further, That the Administrator of the Federal 
Aviation Administration may retain up to 0.2 percent of the 
funds provided under this heading to fund the award and 
oversight by the Administrator of grants made under this 
heading.

                     Federal Highway Administration

                   HIGHWAY INFRASTRUCTURE INVESTMENT

    For an additional amount for restoration, repair, 
construction and other activities eligible under paragraph (b) 
of section 133 of title 23, United States Code, and for 
passenger and freight rail transportation and port 
infrastructure projects eligible for assistance under 
subsection 601(a)(8) of such title, $27,500,000,000, to remain 
available through September 30, 2010: Provided, That, after 
making the set-asides required under this heading, 50 percent 
of the funds made available under this heading shall be 
apportioned to States using the formula set forth in section 
104(b)(3) of title 23, United States Code, and the remaining 
funds shall be apportioned to States in the same ratio as the 
obligation limitation for fiscal year 2008 was distributed 
among the States in accordance with the formula specified in 
section 120(a)(6) of division K of Public Law 110-161: Provided 
further, That funds made available under this heading shall be 
apportioned not later than 21 days after the date of enactment 
of this Act: Provided further, That in selecting projects to be 
carried out with funds apportioned under this heading, priority 
shall be given to projects that are projected for completion 
within a 3-year time frame, and are located in economically 
distressed areas as defined by section 301 of the Public Works 
and Economic Development Act of 1965, as amended (42 U.S.C. 
3161): Provided further, That 120 days following the date of 
such apportionment, the Secretary of Transportation shall 
withdraw from each State an amount equal to 50 percent of the 
funds awarded to that State (excluding funds suballocated 
within the State) less the amount of funding obligated 
(excluding funds suballocated within the State), and the 
Secretary shall redistribute such amounts to other States that 
have had no funds withdrawn under this proviso in the manner 
described in section 120(c) of division K of Public Law 110-
161: Provided further, That 1 year following the date of such 
apportionment, the Secretary shall withdraw from each recipient 
of funds apportioned under this heading any unobligated funds, 
and the Secretary shall redistribute such amounts to States 
that have had no funds withdrawn under this proviso (excluding 
funds suballocated within the State) in the manner described in 
section 120(c) of division K of Public Law 110-161: Provided 
further, That at the request of a State, the Secretary of 
Transportation may provide an extension of such 1-year period 
only to the extent that he feels satisfied that the State has 
encountered extreme conditions that create an unworkable 
bidding environment or other extenuating circumstances: 
Provided further, That before granting such an extension, the 
Secretary shall send a letter to the House and Senate 
Committees on Appropriations that provides a thorough 
justification for the extension: Provided further, That 3 
percent of the funds apportioned to a State under this heading 
shall be set aside for the purposes described in subsection 
133(d)(2) of title 23, United States Code (without regard to 
the comparison to fiscal year 2005): Provided further, That 30 
percent of the funds apportioned to a State under this heading 
shall be suballocated within the State in the manner and for 
the purposes described in the first sentence of subsection 
133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection 
133(d)(3)(D): Provided further, That such suballocation shall 
be conducted in every State: Provided further, That funds 
suballocated within a State to urbanized areas and other areas 
shall not be subject to the redistribution of amounts required 
120 days following the date of apportionment of funds provided 
under this heading: Provided further, That of the funds 
provided under this heading, $105,000,000 shall be for the 
Puerto Rico highway program authorized under section 165 of 
title 23, United States Code, and $45,000,000 shall be for the 
territorial highway program authorized under section 215 of 
title 23, United States Code: Provided further, That of the 
funds provided under this heading, $60,000,000 shall be for 
capital expenditures eligible under section 147 of title 23, 
United States Code (without regard to subsection(d)): Provided 
further, That the Secretary of Transportation shall distribute 
such $60,000,000 as competitive discretionary grants to States, 
with priority given to those projects that demonstrate to his 
satisfaction their ability to be completed within 2 years of 
enactment of this Act: Provided further, That of the funds 
provided under this heading, $550,000,000 shall be for 
investments in transportation at Indian reservations and 
Federal lands: Provided further, That of the funds identified 
in the preceding proviso, $310,000,000 shall be for the Indian 
Reservation Roads program, $170,000,000 shall be for the Park 
Roads and Parkways program, $60,000,000 shall be for the Forest 
Highway Program, and $10,000,000 shall be for the Refuge Roads 
program: Provided further, That for investments at Indian 
reservations and Federal lands, priority shall be given to 
capital investments, and to projects and activities that can be 
completed within 2 years of enactment of this Act: Provided 
further, That 1 year following the enactment of this Act, to 
ensure the prompt use of the $550,000,000 provided for 
investments at Indian reservations and Federal lands, the 
Secretary shall have the authority to redistribute unobligated 
funds within the respective program for which the funds were 
appropriated: Provided further, That up to 4 percent of the 
funding provided for Indian Reservation Roads may be used by 
the Secretary of the Interior for program management and 
oversight and project-related administrative expenses: Provided 
further, That section 134(f)(3)(C)(ii)(II) of title 23, United 
States Code, shall not apply to funds provided under this 
heading: Provided further, That of the funds made available 
under this heading, $20,000,000 shall be for highway surface 
transportation and technology training under section 140(b) of 
title 23, United States Code, and $20,000,000 shall be for 
disadvantaged business enterprises bonding assistance under 
section 332(e) of title 49, United States Code: Provided 
further, That funds made available under this heading shall be 
administered as if apportioned under chapter 1 of title 23, 
United States Code, except for funds made available for 
investments in transportation at Indian reservations and 
Federal lands, and for the territorial highway program, which 
shall be administered in accordance with chapter 2 of title 23, 
United States Code, and except for funds made available for 
disadvantaged business enterprises bonding assistance, which 
shall be administered in accordance with chapter 3 of title 49, 
United States Code: Provided further, That the Federal share 
payable on account of any project or activity carried out with 
funds made available under this heading shall be, at the option 
of the recipient, up to 100 percent of the total cost thereof: 
Provided further, That funds made available by this Act shall 
not be obligated for the purposes authorized under section 
115(b) of title 23, United States Code: Provided further, That 
funding provided under this heading shall be in addition to any 
and all funds provided for fiscal years 2009 and 2010 in any 
other Act for ``Federal-aid Highways'' and shall not affect the 
distribution of funds provided for ``Federal-aid Highways'' in 
any other Act: Provided further, That the amount made available 
under this heading shall not be subject to any limitation on 
obligations for Federal-aid highways or highway safety 
construction programs set forth in any Act: Provided further, 
That section 1101(b) of Public Law 109-59 shall apply to funds 
apportioned under this heading: Provided further, That the 
Administrator of the Federal Highway Administration may retain 
up to $40,000,000 of the funds provided under this heading to 
fund the oversight by the Administrator of projects and 
activities carried out with funds made available to the Federal 
Highway Administration in this Act and such funds shall be 
available through September 30, 2012.

                    Federal Railroad Administration

    CAPITAL ASSISTANCE FOR HIGH SPEED RAIL CORRIDORS AND INTERCITY 
                         PASSENGER RAIL SERVICE

    For an additional amount for section 501 of Public Law 110-
432 and discretionary grants to States to pay for the cost of 
projects described in paragraphs (2)(A) and (2)(B) of section 
24401 of title 49, United States Code, subsection (b) of 
section 24105 of such title, $8,000,000,000, to remain 
available through September 30, 2012: Provided, That the 
Secretary of Transportation shall give priority to projects 
that support the development of intercity high speed rail 
service: Provided further, That within 60 days of the enactment 
of this Act, the Secretary shall submit to the House and Senate 
Committees on Appropriations a strategic plan that describes 
how the Secretary will use the funding provided under this 
heading to improve and deploy high speed passenger rail 
systems: Provided further, That within 120 days of enactment of 
this Act, the Secretary shall issue interim guidance to 
applicants covering grant terms, conditions, and procedures 
until final regulations are issued: Provided further, That such 
interim guidance shall provide separate instructions for the 
high speed rail corridor program, capital assistance for 
intercity passenger rail service grants, and congestion grants: 
Provided further, That the Secretary shall waive the 
requirement that a project conducted using funds provided under 
this heading be in a State rail plan developed under chapter 
227 of title 49, United States Code: Provided further, That the 
Federal share payable of the costs for which a grant is made 
under this heading shall be, at the option of the recipient, up 
to 100 percent: Provided further, That projects conducted using 
funds provided under this heading must comply with the 
requirements of subchapter IV of chapter 31 of title 40, United 
States Code: Provided further, That section 24405 of title 49, 
United States Code, shall apply to funds provided under this 
heading: Provided further, That the Administrator of the 
Federal Railroad Administration may retain up to one-quarter of 
1 percent of the funds provided under this heading to fund the 
award and oversight by the Administrator of grants made under 
this heading, and funds retained for said purposes shall remain 
available through September 30, 2014.

     CAPITAL GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

    For an additional amount for the National Railroad 
Passenger Corporation (Amtrak) to enable the Secretary of 
Transportation to make capital grants to Amtrak as authorized 
by section 101(c) of the Passenger Rail Investment and 
Improvement Act of 2008 (Public Law 110-432), $1,300,000,000, 
to remain available through September 30, 2010, of which 
$450,000,000 shall be used for capital security grants: 
Provided, That priority for the use of non-security funds shall 
be given to projects for the repair, rehabilitation, or upgrade 
of railroad assets or infrastructure, and for capital projects 
that expand passenger rail capacity including the 
rehabilitation of rolling stock: Provided further, That none of 
the funds under this heading shall be used to subsidize the 
operating losses of Amtrak: Provided further, That funds 
provided under this heading shall be awarded not later than 30 
days after the date of enactment of this Act: Provided further, 
That the Secretary shall take measures to ensure that projects 
funded under this heading shall be completed within 2 years of 
enactment of this Act, and shall serve to supplement and not 
supplant planned expenditures for such activities from other 
Federal, State, local and corporate sources: Provided further, 
That the Secretary shall certify to the House and Senate 
Committees on Appropriations in writing compliance with the 
preceding proviso: Provided further, That not more than 60 
percent of the funds provided for non-security activities under 
this heading may be used for capital projects along the 
Northeast Corridor: Provided further, That of the funding 
provided under this heading, $5,000,000 shall be made available 
for the Amtrak Office of Inspector General and made available 
through September 30, 2013.

                     Federal Transit Administration

                       TRANSIT CAPITAL ASSISTANCE

    For an additional amount for transit capital assistance 
grants authorized under section 5302(a)(1) of title 49, United 
States Code, $6,900,000,000, to remain available through 
September 30, 2010: Provided, That the Secretary of 
Transportation shall provide 80 percent of the funds 
appropriated under this heading for grants under section 5307 
of title 49, United States Code, and apportion such funds in 
accordance with section 5336 of such title (other than 
subsections (i)(1) and (j)): Provided further, That the 
Secretary shall apportion 10 percent of the funds appropriated 
under this heading in accordance with section 5340 of such 
title: Provided further, That the Secretary shall provide 10 
percent of the funds appropriated under this heading for grants 
under section 5311 of title 49, United States Code, and 
apportion such funds in accordance with such section: Provided 
further, That funds apportioned under this heading shall be 
apportioned not later than 21 days after the date of enactment 
of this Act: Provided further, That 180 days following the date 
of such apportionment, the Secretary shall withdraw from each 
urbanized area or State an amount equal to 50 percent of the 
funds apportioned to such urbanized areas or States less the 
amount of funding obligated, and the Secretary shall 
redistribute such amounts to other urbanized areas or States 
that have had no funds withdrawn under this proviso utilizing 
whatever method he deems appropriate to ensure that all funds 
redistributed under this proviso shall be utilized promptly: 
Provided further, That 1 year following the date of such 
apportionment, the Secretary shall withdraw from each urbanized 
area or State any unobligated funds, and the Secretary shall 
redistribute such amounts to other urbanized areas or States 
that have had no funds withdrawn under this proviso utilizing 
whatever method he deems appropriate to ensure that all funds 
redistributed under this proviso shall be utilized promptly: 
Provided further, That at the request of an urbanized area or 
State, the Secretary of Transportation may provide an extension 
of such 1-year period if he feels satisfied that the urbanized 
area or State has encountered an unworkable bidding environment 
or other extenuating circumstances: Provided further, That 
before granting such an extension, the Secretary shall send a 
letter to the House and Senate Committees on Appropriations 
that provides a thorough justification for the extension: 
Provided further, That of the funds provided for section 5311 
of title 49, United States Code, 2.5 percent shall be made 
available for section 5311(c)(1): Provided further, That of the 
funding provided under this heading, $100,000,000 shall be 
distributed as discretionary grants to public transit agencies 
for capital investments that will assist in reducing the energy 
consumption or greenhouse gas emissions of their public 
transportation systems: Provided further, That for such grants 
on energy-related investments, priority shall be given to 
projects based on the total energy savings that are projected 
to result from the investment, and projected energy savings as 
a percentage of the total energy usage of the public transit 
agency: Provided further, That applicable chapter 53 
requirements shall apply to funding provided under this 
heading, except that the Federal share of the costs for which 
any grant is made under this heading shall be, at the option of 
the recipient, up to 100 percent: Provided further, That the 
amount made available under this heading shall not be subject 
to any limitation on obligations for transit programs set forth 
in any Act: Provided further, That section 1101(b) of Public 
Law 109-59 shall apply to funds appropriated under this 
heading: Provided further, That the funds appropriated under 
this heading shall not be commingled with any prior year funds: 
Provided further, That notwithstanding any other provision of 
law, three-quarters of 1 percent of the funds provided for 
grants under section 5307 and section 5340, and one-half of 1 
percent of the funds provided for grants under section 5311, 
shall be available for administrative expenses and program 
management oversight, and such funds shall be available through 
September 30, 2012.

                fixed guideway infrastructure investment

    For an amount for capital expenditures authorized under 
section 5309(b)(2) of title 49, United States Code, 
$750,000,000, to remain available through September 30, 2010: 
Provided, That the Secretary of Transportation shall apportion 
funds under this heading pursuant to the formula set forth in 
section 5337 of title 49, United States Code: Provided further, 
That the funds appropriated under this heading shall not be 
commingled with any prior year funds: Provided further, That 
funds made available under this heading shall be apportioned 
not later than 21 days after the date of enactment of this Act: 
Provided further, That 180 days following the date of such 
apportionment, the Secretary shall withdraw from each urbanized 
area an amount equal to 50 percent of the funds apportioned to 
such urbanized area less the amount of funding obligated, and 
the Secretary shall redistribute such amounts to other 
urbanized areas that have had no funds withdrawn under this 
proviso utilizing whatever method he or she deems appropriate 
to ensure that all funds redistributed under this proviso shall 
be utilized promptly: Provided further, That 1 year following 
the date of such apportionment, the Secretary shall withdraw 
from each urbanized area any unobligated funds, and the 
Secretary shall redistribute such amounts to other urbanized 
areas that have had no funds withdrawn under this proviso 
utilizing whatever method he or she deems appropriate to ensure 
that all funds redistributed under this proviso shall be 
utilized promptly: Provided further, That at the request of an 
urbanized area, the Secretary of Transportation may provide an 
extension of such 1-year period if he or she feels satisfied 
that the urbanized area has encountered an unworkable bidding 
environment or other extenuating circumstances: Provided 
further, That before granting such an extension, the Secretary 
shall send a letter to the House and Senate Committees on 
Appropriations that provides a thorough justification for the 
extension: Provided further, That applicable chapter 53 
requirements shall apply except that the Federal share of the 
costs for which a grant is made under this heading shall be, at 
the option of the recipient, up to 100 percent: Provided 
further, That the provisions of section 1101(b) of Public Law 
109-59 shall apply to funds made available under this heading: 
Provided further, That notwithstanding any other provision of 
law, up to 1 percent of the funds under this heading shall be 
available for administrative expenses and program management 
oversight and shall remain available for obligation until 
September 30, 2012.

                       CAPITAL INVESTMENT GRANTS

     For an additional amount for ``Capital Investment 
Grants'', as authorized under section 5338(c)(4) of title 49, 
United States Code, and allocated under section 5309(m)(2)(A) 
of such title, to enable the Secretary of Transportation to 
make discretionary grants as authorized by section 5309(d) and 
(e) of such title, $750,000,000, to remain available through 
September 30, 2010: Provided, That such amount shall be 
allocated without regard to the limitation under section 
5309(m)(2)(A)(i): Provided further, That in selecting projects 
to be funded, priority shall be given to projects that are 
currently in construction or are able to obligate funds within 
150 days of enactment of this Act: Provided further, That the 
provisions of section 1101(b) of Public Law 109-59 shall apply 
to funds made available under this heading: Provided further, 
That funds appropriated under this heading shall not be 
commingled with any prior year funds: Provided further, That 
applicable chapter 53 requirements shall apply, except that 
notwithstanding any other provision of law, up to 1 percent of 
the funds provided under this heading shall be available for 
administrative expenses and program management oversight, and 
shall remain available through September 30, 2012.

                        Maritime Administration

         SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL SHIPYARDS

    To make grants to qualified shipyards as authorized under 
section 3508 of Public Law 110-417 or section 54101 of title 
46, United States Code, $100,000,000, to remain available 
through September 30, 2010: Provided, That the Secretary of 
Transportation shall institute measures to ensure that funds 
provided under this heading shall be obligated within 180 days 
of the date of their distribution: Provided further, That the 
Maritime Administrator may retain and transfer to ``Maritime 
Administration, Operations and Training'' up to 2 percent of 
the funds provided under this heading to fund the award and 
oversight by the Administrator of grants made under this 
heading.

                      Office of Inspector General

                         SALARIES AND EXPENSES

    For an additional amount for necessary expenses of the 
Office of Inspector General to carry out the provisions of the 
Inspector General Act of 1978, as amended, $20,000,000, to 
remain available through September 30, 2013: Provided, That the 
funding made available under this heading shall be used for 
conducting audits and investigations of projects and activities 
carried out with funds made available in this Act to the 
Department of Transportation: Provided further, That the 
Inspector General shall have all necessary authority, in 
carrying out the duties specified in the Inspector General Act, 
as amended (5 U.S.C. App. 3), to investigate allegations of 
fraud, including false statements to the Government (18 U.S.C. 
1001), by any person or entity that is subject to regulation by 
the Department.

            GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION

    Sec. 1201. (a) Maintenance of Effort.--Not later than 30 
days after the date of enactment of this Act, for each amount 
that is distributed to a State or agency thereof from an 
appropriation in this Act for a covered program, the Governor 
of the State shall certify to the Secretary of Transportation 
that the State will maintain its effort with regard to State 
funding for the types of projects that are funded by the 
appropriation. As part of this certification, the Governor 
shall submit to the Secretary of Transportation a statement 
identifying the amount of funds the State planned to expend 
from State sources as of the date of enactment of this Act 
during the period beginning on the date of enactment of this 
Act through September 30, 2010, for the types of projects that 
are funded by the appropriation.
    (b) Failure To Maintain Effort.--If a State is unable to 
maintain the level of effort certified pursuant to subsection 
(a), the State will be prohibited by the Secretary of 
Transportation from receiving additional limitation pursuant to 
the redistribution of the limitation on obligations for 
Federal-aid highway and highway safety construction programs 
that occurs after August 1 for fiscal year 2011.
    (c) Periodic Reports.--
            (1) In general.--Notwithstanding any other 
        provision of law, each grant recipient shall submit to 
        the covered agency from which they received funding 
        periodic reports on the use of the funds appropriated 
        in this Act for covered programs. Such reports shall be 
        collected and compiled by the covered agency and 
        transmitted to Congress. Covered agencies may develop 
        such reports on behalf of grant recipients to ensure 
        the accuracy and consistency of such reports.
            (2) Contents of reports.--For amounts received 
        under each covered program by a grant recipient under 
        this Act, the grant recipient shall include in the 
        periodic reports information tracking--
                    (A) the amount of Federal funds 
                appropriated, allocated, obligated, and 
                outlayed under the appropriation;
                    (B) the number of projects that have been 
                put out to bid under the appropriation and the 
                amount of Federal funds associated with such 
                projects;
                    (C) the number of projects for which 
                contracts have been awarded under the 
                appropriation and the amount of Federal funds 
                associated with such contracts;
                    (D) the number of projects for which work 
                has begun under such contracts and the amount 
                of Federal funds associated with such 
                contracts;
                    (E) the number of projects for which work 
                has been completed under such contracts and the 
                amount of Federal funds associated with such 
                contracts;
                    (F) the number of direct, on-project jobs 
                created or sustained by the Federal funds 
                provided for projects under the appropriation 
                and, to the extent possible, the estimated 
                indirect jobs created or sustained in the 
                associated supplying industries, including the 
                number of job-years created and the total 
                increase in employment since the date of 
                enactment of this Act; and
                    (G) for each covered program report 
                information tracking the actual aggregate 
                expenditures by each grant recipient from State 
                sources for projects eligible for funding under 
                the program during the period beginning on the 
                date of enactment of this Act through September 
                30, 2010, as compared to the level of such 
                expenditures that were planned to occur during 
                such period as of the date of enactment of this 
                Act.
            (3) Timing of reports.--Each grant recipient shall 
        submit the first of the periodic reports required under 
        this subsection not later than 90 days after the date 
        of enactment of this Act and shall submit updated 
        reports not later than 180 days, 1 year, 2 years, and 3 
        years after such date of enactment.
    (d) Definitions.--In this section, the following 
definitions apply:
            (1) Covered agency.--The term ``covered agency'' 
        means the Office of the Secretary of Transportation, 
        the Federal Aviation Administration, the Federal 
        Highway Administration, the Federal Railroad 
        Administration, the Federal Transit Administration and 
        the Maritime Administration of the Department of 
        Transportation.
            (2) Covered program.--The term ``covered program'' 
        means funds appropriated in this Act for ``Supplemental 
        Discretionary Grants for a National Surface 
        Transportation System'' to the Office of the Secretary 
        of Transportation, for ``Supplemental Funding for 
        Facilities and Equipment'' and ``Grants-in-Aid for 
        Airports'' to the Federal Aviation Administration; for 
        ``Highway Infrastructure Investment'' to the Federal 
        Highway Administration; for ``Capital Assistance for 
        High Speed Rail Corridors and Intercity Passenger Rail 
        Service'' and ``Capital Grants to the National Railroad 
        Passenger Corporation'' to the Federal Railroad 
        Administration; for ``Transit Capital Assistance'', 
        ``Fixed Guideway Infrastructure Investment'', and 
        ``Capital Investment Grants'' to the Federal Transit 
        Administration; and ``Supplemental Grants for 
        Assistance to Small Shipyards'' to the Maritime 
        Administration.
            (3) Grant recipient.--The term ``grant recipient'' 
        means a State or other recipient of assistance provided 
        under a covered program in this Act. Such term does not 
        include a Federal department or agency.
    (e) Notwithstanding any other provision of law, sections 
3501-3521 of title 44, United States Code, shall not apply to 
the provisions of this section.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing

                      PUBLIC HOUSING CAPITAL FUND

    For an additional amount for the ``Public Housing Capital 
Fund'' to carry out capital and management activities for 
public housing agencies, as authorized under section 9 of the 
United States Housing Act of 1937 (42 U.S.C. 1437g) (the 
``Act''), $4,000,000,000, to remain available until September 
30, 2011: Provided, That the Secretary of Housing and Urban 
Development shall distribute $3,000,000,000 of this amount by 
the same formula used for amounts made available in fiscal year 
2008, except that the Secretary may determine not to allocate 
funding to public housing agencies currently designated as 
troubled or to public housing agencies that elect not to accept 
such funding: Provided further, That the Secretary shall 
obligate funds allocated by formula within 30 days of enactment 
of this Act: Provided further, That the Secretary shall make 
available $1,000,000,000 by competition for priority 
investments, including investments that leverage private sector 
funding or financing for renovations and energy conservation 
retrofit investments: Provided further, That the Secretary 
shall obligate competitive funding by September 30, 2009: 
Provided further, That public housing authorities shall give 
priority to capital projects that can award contracts based on 
bids within 120 days from the date the funds are made available 
to the public housing authorities: Provided further, That 
public housing agencies shall give priority consideration to 
the rehabilitation of vacant rental units: Provided further, 
That public housing agencies shall prioritize capital projects 
that are already underway or included in the 5-year capital 
fund plans required by the Act (42 U.S.C. 1437c-1(a)): Provided 
further, That notwithstanding any other provision of law, (1) 
funding provided under this heading may not be used for 
operating or rental assistance activities, and (2) any 
restriction of funding to replacement housing uses shall be 
inapplicable: Provided further, That notwithstanding any other 
provision of law, the Secretary shall institute measures to 
ensure that funds provided under this heading shall serve to 
supplement and not supplant expenditures from other Federal, 
State, or local sources or funds independently generated by the 
grantee: Provided further, That notwithstanding section 9(j), 
public housing agencies shall obligate 100 percent of the funds 
within 1 year of the date on which funds become available to 
the agency for obligation, shall expend at least 60 percent of 
funds within 2 years of the date on which funds become 
available to the agency for obligation, and shall expend 100 
percent of the funds within 3 years of such date: Provided 
further, That if a public housing agency fails to comply with 
the 1-year obligation requirement, the Secretary shall 
recapture all remaining unobligated funds awarded to the public 
housing agency and reallocate such funds to agencies that are 
in compliance with those requirements: Provided further, That 
if a public housing agency fails to comply with either the 2-
year or the 3-year expenditure requirement, the Secretary shall 
recapture the balance of the funds awarded to the public 
housing agency and reallocate such funds to agencies that are 
in compliance with those requirements: Provided further, That 
in administering funds appropriated or otherwise made available 
under this heading, the Secretary may waive or specify 
alternative requirements for any provision of any statute or 
regulation in connection with the obligation by the Secretary 
or the use of these funds (except for requirements related to 
fair housing, nondiscrimination, labor standards, and the 
environment), upon a finding that such a waiver is necessary to 
expedite or facilitate the use of such funds: Provided further, 
That, in addition to waivers authorized under the previous 
proviso, the Secretary may direct that requirements relating to 
the procurement of goods and services arising under state and 
local laws and regulations shall not apply to amounts made 
available under this heading: Provided further, That of the 
funds made available under this heading, up to .5 percent shall 
be available for staffing, training, technical assistance, 
technology, monitoring, travel, enforcement, research and 
evaluation activities: Provided further, That funds set aside 
in the previous proviso shall remain available until September 
30, 2012: Provided further, That any funds made available under 
this heading used by the Secretary for personnel expenses 
related to administering funding under this heading shall be 
transferred to ``Personnel Compensation and Benefits, Office of 
Public and Indian Housing'' and shall retain the terms and 
conditions of this account, including reprogramming provisions, 
except that the period of availability set forth in the 
previous proviso shall govern such transferred funds: Provided 
further, That any funds made available under this heading used 
by the Secretary for training or other administrative expenses 
shall be transferred to ``Administration, Operations, and 
Management'', for non-personnel expenses of the Department of 
Housing and Urban Development: Provided further, That any funds 
made available under this heading used by the Secretary for 
technology shall be transferred to ``Working Capital Fund''.

                  Native American Housing Block Grants

    For an additional amount for ``Native American Housing 
Block Grants'', as authorized under title I of the Native 
American Housing Assistance and Self-Determination Act of 1996 
(``NAHASDA'') (25 U.S.C. 4111 et seq.), $510,000,000 to remain 
available until September 30, 2011: Provided, That $255,000,000 
of the amount provided under this heading shall be distributed 
according to the same funding formula used in fiscal year 2008: 
Provided further, That the Secretary shall obligate funds 
allocated by formula within 30 days of enactment of this Act: 
Provided further, That the amounts distributed through the 
formula shall be used for new construction, acquisition, 
rehabilitation including energy efficiency and conservation, 
and infrastructure development: Provided further, That in 
selecting projects to be funded, recipients shall give priority 
to projects for which contracts can be awarded within 180 days 
from the date that funds are available to the recipients: 
Provided further, that the Secretary may obligate $255,000,000 
of the amount provided under this heading for competitive 
grants to eligible entities that apply for funds authorized 
under NAHASDA: Provided further, That the Secretary shall 
obligate competitive funding by September 30, 2009: Provided 
further, That in awarding competitive funds, the Secretary 
shall give priority to projects that will spur construction and 
rehabilitation and will create employment opportunities for 
low-income and unemployed persons: Provided further, That 
recipients of funds under this heading shall obligate 100 
percent of such funds within 1 year of the date funds are made 
available to a recipient, expend at least 50 percent of such 
funds within 2 years of the date on which funds become 
available to such recipients for obligation and expend 100 
percent of such funds within 3 years of such date: Provided 
further, That if a recipient fails to comply with the 2-year 
expenditure requirement, the Secretary shall recapture all 
remaining funds awarded to the recipient and reallocate such 
funds through the funding formula to recipients that are in 
compliance with these requirements: Provided further, That if a 
recipient fails to comply with the 3-year expenditure 
requirement, the Secretary shall recapture the balance of the 
funds originally awarded to the recipient: Provided further, 
That notwithstanding any other provision of law, the Secretary 
may set aside up to 2 percent of funds made available under 
this paragraph for a housing entity eligible to receive funding 
under title VIII of NAHASDA (25 U.S.C. 4221 et seq.): Provided 
further, That in administering funds appropriated or otherwise 
made available under this heading, the Secretary may waive or 
specify alternative requirements for any provision of any 
statute or regulation in connection with the obligation by the 
Secretary or the use of these funds (except for requirements 
related to fair housing, nondiscrimination, labor standards, 
and the environment), upon a finding that such a waiver is 
necessary to expedite or facilitate the use of such funds: 
Provided further, That of the funds made available under this 
heading, up to .5 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, travel, 
enforcement, research and evaluation activities: Provided 
further, That funds set aside in the previous proviso shall 
remain available until September 30, 2012: Provided further, 
That any funds made available under this heading used by the 
Secretary for personnel expenses related to administering 
funding under this heading shall be transferred to ``Personnel 
Compensation and Benefits, Office of Public and Indian 
Housing'' and shall retain the terms and conditions of this 
account, including reprogramming provisions, except that the 
period of availability set forth in the previous proviso shall 
govern such transferred funds: Provided further, That any funds 
made available under this heading used by the Secretary for 
training or other administrative expenses shall be transferred 
to ``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban 
Development: Provided further, That any funds made available 
under this heading used by the Secretary for technology shall 
be transferred to ``Working Capital Fund''.

                   Community Planning and Development

                       COMMUNITY DEVELOPMENT FUND

    For an additional amount for ``Community Development Fund'' 
$1,000,000,000, to remain available until September 30, 2010 to 
carry out the community development block grant program under 
title I of the Housing and Community Development Act of 1974 
(42 U.S.C. 5301 et seq.): Provided, That the amount 
appropriated in this paragraph shall be distributed pursuant to 
42 U.S.C. 5306 to grantees that received funding in fiscal year 
2008: Provided further, That in administering the funds 
appropriated in this paragraph, the Secretary of Housing and 
Urban Development shall establish requirements to expedite the 
use of the funds: Provided further, That in selecting projects 
to be funded, recipients shall give priority to projects that 
can award contracts based on bids within 120 days from the date 
the funds are made available to the recipients: Provided 
further, That in administering funds appropriated or otherwise 
made available under this heading, the Secretary may waive or 
specify alternative requirements for any provision of any 
statute or regulation in connection with the obligation by the 
Secretary or the use by the recipient of these funds (except 
for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment), upon a finding that such 
waiver is necessary to expedite or facilitate the timely use of 
such funds and would not be inconsistent with the overall 
purpose of the statute.
    For the provision of emergency assistance for the 
redevelopment of abandoned and foreclosed homes, as authorized 
under division B, title III of the Housing and Economic 
Recovery Act of 2008 (``the Act'') (Public Law 110-289) (42 
U.S.C. 5301 note), $2,000,000,000, to remain available until 
September 30, 2010: Provided, That grantees shall expend at 
least 50 percent of allocated funds within 2 years of the date 
funds become available to the grantee for obligation, and 100 
percent of such funds within 3 years of such date: Provided 
further, That unless otherwise noted herein, the provisions of 
the Act govern the use of the additional funds made available 
under this heading: Provided further, That notwithstanding the 
provisions of sections 2301(b) and (c)(1) and section 2302 of 
the Act, funding under this paragraph shall be allocated by 
competitions for which eligible entities shall be States, units 
of general local government, and nonprofit entities or 
consortia of nonprofit entities, which may submit proposals in 
partnership with for profit entities: Provided further, That in 
selecting grantees, the Secretary of Housing and Urban 
Development shall ensure that the grantees are in areas with 
the greatest number and percentage of foreclosures and can 
expend funding within the period allowed under this heading: 
Provided further, That additional award criteria for such 
competitions shall include demonstrated grantee capacity to 
execute projects, leveraging potential, concentration of 
investment to achieve neighborhood stabilization, and any 
additional factors determined by the Secretary of Housing and 
Urban Development: Provided further, That the Secretary may 
establish a minimum grant size: Provided further, That the 
Secretary shall publish criteria on which to base competition 
for any grants awarded under this heading not later than 75 
days after the enactment of this Act and applications shall be 
due to HUD not later than 150 days after the enactment of this 
Act: Provided further, That the Secretary shall obligate all 
funding within 1 year of enactment of this Act: Provided 
further, That section 2301(d)(4) of the Act is repealed: 
Provided further, That section 2301(c)(3)(C) of the Act is 
amended to read ``establish and operate land banks for homes 
and residential properties that have been foreclosed upon'': 
Provided further, That funding used for section 2301(c)(3)(E) 
of the Act shall be available only for the redevelopment of 
demolished or vacant properties as housing: Provided further, 
That no amounts made available from a grant under this heading 
may be used to demolish any public housing (as such term is 
defined in section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a)): Provided further, That a grantee may not 
use more than 10 percent of its grant under this heading for 
demolition activities under section 2301(c)(3)(C) and (D) 
unless the Secretary determines that such use represents an 
appropriate response to local market conditions: Provided 
further, That the recipient of any grant or loan from amounts 
made available under this heading or, after the date of 
enactment under division B, title III of the Housing and 
Economic Recovery Act of 2008, may not refuse to lease a 
dwelling unit in housing with such loan or grant to a 
participant under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) because of the status of the prospective 
tenant as such a participant: Provided further, That in 
addition to the eligible uses in section 2301, the Secretary 
may also use up to 10 percent of the funds provided under this 
heading for grantees for the provision of capacity building of 
and support for local communities receiving funding under 
section 2301 of the Act or under this heading: Provided 
further, That in administering funds appropriated or otherwise 
made available under this section, the Secretary may waive or 
specify alternative requirements for any provision of any 
statute or regulation in connection with the obligation by the 
Secretary or the use of funds except for requirements related 
to fair housing, nondiscrimination, labor standards and the 
environment, upon a finding that such a waiver is necessary to 
expedite or facilitate the use of such funds: Provided further, 
That in the case of any acquisition of a foreclosed upon 
dwelling or residential real property acquired after the date 
of enactment with any amounts made available under this heading 
or under division B, title III of the Housing and Economic 
Recovery Act of 2008 (Public Law 110-289), the initial 
successor in interest in such property pursuant to the 
foreclosure shall assume such interest subject to: (1) the 
provision by such successor in interest of a notice to vacate 
to any bona fide tenant at least 90 days before the effective 
date of such notice; and (2) the rights of any bona fide 
tenant, as of the date of such notice of foreclosure: (A) under 
any bona fide lease entered into before the notice of 
foreclosure to occupy the premises until the end of the 
remaining term of the lease, except that a successor in 
interest may terminate a lease effective on the date of sale of 
the unit to a purchaser who will occupy the unit as a primary 
residence, subject to the receipt by the tenant of the 90-day 
notice under this paragraph; or (B) without a lease or with a 
lease terminable at will under State law, subject to the 
receipt by the tenant of the 90-day notice under this 
paragraph, except that nothing in this paragraph shall affect 
the requirements for termination of any Federal- or State-
subsidized tenancy or of any State or local law that provides 
longer time periods or other additional protections for 
tenants: Provided further, That, for purposes of this 
paragraph, a lease or tenancy shall be considered bona fide 
only if: (1) the mortgagor under the contract is not the 
tenant; (2) the lease or tenancy was the result of an arms-
length transaction; and (3) the lease or tenancy requires the 
receipt of rent that is not substantially less than fair market 
rent for the property: Provided further, That the recipient of 
any grant or loan from amounts made available under this 
heading or, after the date of enactment, under division B, 
title III of the Housing and Economic Recovery Act of 2008 
(Public Law 110-289) may not refuse to lease a dwelling unit in 
housing assisted with such loan or grant to a holder of a 
voucher or certificate of eligibility under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) because of 
the status of the prospective tenant as such a holder: Provided 
further, That in the case of any qualified foreclosed housing 
for which funds made available under this heading or, after the 
date of enactment, under division B, title III of the Housing 
and Economic Recovery Act of 2008 (Public Law 110-289) are used 
and in which a recipient of assistance under section 8(o) of 
the U.S. Housing Act of 1937 resides at the time of 
foreclosure, the initial successor in interest shall be subject 
to the lease and to the housing assistance payments contract 
for the occupied unit: Provided further, That vacating the 
property prior to sale shall not constitute good cause for 
termination of the tenancy unless the property is unmarketable 
while occupied or unless the owner or subsequent purchaser 
desires the unit for personal or family use: Provided further, 
That if a public housing agency is unable to make payments 
under the contract to the immediate successor in interest after 
foreclosures, due to (1) an action or inaction by the successor 
in interest, including the rejection of payments or the failure 
of the successor to maintain the unit in compliance with 
section 8(o)(8) of the United States Housing Act of 1937 (42 
U.S.C.1437f) or (2) an inability to identify the successor, the 
agency may use funds that would have been used to pay the 
rental amount on behalf of the family--(i) to pay for utilities 
that are the responsibility of the owner under the lease or 
applicable law, after taking reasonable steps to notify the 
owner that it intends to make payments to a utility provider in 
lieu of payments to the owner, except prior notification shall 
not be required in any case in which the unit will be or has 
been rendered uninhabitable due to the termination or threat of 
termination of service, in which case the public housing agency 
shall notify the owner within a reasonable time after making 
such payment; or (ii) for the family's reasonable moving costs, 
including security deposit costs: Provided further, That this 
paragraph shall not preempt any Federal, State or local law 
that provides more protections for tenants: Provided further, 
That of the funds made available under this heading, up to 1 
percent shall be available for staffing, training, technical 
assistance, technology, monitoring, travel, enforcement, 
research and evaluation activities: Provided further, That 
funds set aside in the previous proviso shall remain available 
until September 30, 2012: Provided further, That any funds made 
available under this heading used by the Secretary for 
personnel expenses related to administering funding under this 
heading shall be transferred to ``Personnel Compensation and 
Benefits, Community Planning and Development'' and shall retain 
the terms and conditions of this account, including 
reprogramming provisions, except that the period of 
availability set forth in the previous proviso shall govern 
such transferred funds: Provided further, That any funds made 
available under this heading used by the Secretary for training 
or other administrative expenses shall be transferred to 
``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban 
Development: Provided further, That any funds made available 
under this heading used by the Secretary for technology shall 
be transferred to ``Working Capital Fund''.

                  home investment partnerships program

    For an additional amount for capital investments in low-
income housing tax credit projects, $2,250,000,000, to remain 
available until September 30, 2011: Provided, That such funds 
shall be made available to State housing credit agencies, as 
defined in section 42(h) of the Internal Revenue Code of 1986, 
and shall be apportioned among the States based on the 
percentage of HOME funds apportioned to each State and the 
participating jurisdictions therein for Fiscal Year 2008: 
Provided further, That the housing credit agencies in each 
State shall distribute these funds competitively under this 
heading and pursuant to their qualified allocation plan (as 
defined in section 42(m) of the Internal Revenue Code of 1986) 
to owners of projects who have received or receive 
simultaneously an award of low-income housing tax credits under 
section 42(h) of the Internal Revenue Code of 1986: Provided 
further, That housing credit agencies in each State shall 
commit not less than 75 percent of such funds within one year 
of the date of enactment of this Act, and shall demonstrate 
that the project owners shall have expended 75 percent of the 
funds made available under this heading within 2 years of the 
date of enactment of this Act, and shall have expended 100 
percent of the funds within 3 years of the date of enactment of 
this Act: Provided further, That failure by an owner to expend 
funds within the parameters required within the previous 
proviso shall result in a redistribution of these funds by a 
housing credit agency to a more deserving project in such 
State, except any funds not expended after 3 years from 
enactment shall be redistributed by the Secretary to other 
States that have fully utilized the funds made available to 
them: Provided further, That projects awarded low income 
housing tax credits under section 42(h) of the IRC of 1986 in 
fiscal years 2007, 2008, or 2009 shall be eligible for funding 
under this heading: Provided further, That housing credit 
agencies shall give priority to projects that are expected to 
be completed within 3 years of enactment: Provided further, 
That any assistance provided to an eligible low income housing 
tax credit project under this heading shall be made in the same 
manner and be subject to the same limitations (including rent, 
income, and use restrictions, in lieu of corresponding 
limitations under the HOME program) as required by the State 
housing credit agency with respect to an award of low income 
housing credits under section 42 of the IRC of 1986: Provided 
further, That the housing credit agency shall perform asset 
management functions, or shall contract for the performance of 
such services, in either case, at the owner's expense, to 
ensure compliance with section 42 of the IRC of 1986, and the 
long term viability of buildings funded by assistance under 
this heading: Provided further, That the term eligible basis 
(as such term is defined in such section 42) of a qualified 
low-income housing tax credit building receiving assistance 
under this heading shall not be reduced by the amount of any 
grant described under this heading: Provided further, That the 
Secretary shall be given access upon reasonable notice to a 
State housing credit agency to information related to the award 
of Federal funds from such housing credit agency pursuant to 
this heading and shall establish an Internet site that shall 
identify all projects selected for an award, including the 
amount of the award and such site shall provide linkage to the 
housing credit agency allocation plan which describes the 
process that was used to make the award decision: Provided 
further, That in administering funds under this heading, the 
Secretary may waive any provision of any statute or regulation 
that the Secretary administers in connection with the 
obligation by the Secretary or the use by the recipient of 
these funds except for requirements imposed by this heading and 
requirements related to fair housing, non-discrimination, labor 
standards and the environment, upon a finding that such waiver 
is required to expedite the use of such funds: Provided 
further, That for purposes of environmental compliance review, 
funds under this heading that are made available to State 
housing credit agencies for distribution to projects awarded 
low income housing tax credits shall be treated as funds under 
the HOME program and shall be subject to Section 288 of the 
HOME Investment Partnership Act.

                      homelessness prevention fund

    For homelessness prevention and rapid re-housing 
activities, $1,500,000,000, to remain available until September 
30, 2011: Provided, That funds provided under this heading 
shall be used for the provision of short-term or medium-term 
rental assistance; housing relocation and stabilization 
services including housing search, mediation or outreach to 
property owners, credit repair, security or utility deposits, 
utility payments, rental assistance for a final month at a 
location, moving cost assistance, and case management; or other 
appropriate activities for homelessness prevention and rapid 
re-housing of persons who have become homeless: Provided 
further, That grantees receiving such assistance shall collect 
data on the use of the funds awarded and persons served with 
this assistance in the HUD Homeless Management Information 
System (``HMIS'') or other comparable database: Provided 
further, That grantees may use up to 5 percent of any grant for 
administrative costs: Provided further, That funding made 
available under this heading shall be allocated to eligible 
grantees (as defined and designated in sections 411 and 412 of 
subtitle B of title IV of the McKinney-Vento Homeless 
Assistance Act, (the ``Act'')) pursuant to the formula 
authorized by section 413 of the Act: Provided further, That 
the Secretary may establish a minimum grant size: Provided 
further, That grantees shall expend at least 60 percent of 
funds within 2 years of the date that funds became available to 
them for obligation, and 100 percent of funds within 3 years of 
such date, and the Secretary may recapture unexpended funds in 
violation of the 2-year expenditure requirement and reallocate 
such funds to grantees in compliance with that requirement: 
Provided further, That the Secretary may waive statutory or 
regulatory provisions (except provisions for fair housing, 
nondiscrimination, labor standards, and the environment) 
necessary to facilitate the timely expenditure of funds: 
Provided further, That the Secretary shall publish a notice to 
establish such requirements as may be necessary to carry out 
the provisions of this section within 30 days of enactment of 
this Act and that this notice shall take effect upon issuance: 
Provided further, That of the funds provided under this 
heading, up to .5 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, 
research and evaluation activities: Provided further, That 
funds set aside under the previous proviso shall remain 
available until September 30, 2012: Provided further, That any 
funds made available under this heading used by the Secretary 
for personnel expenses related to administering funding under 
this heading shall be transferred to ``Community Planning and 
Development Personnel Compensation and Benefits'' and shall 
retain the terms and conditions of this account including 
reprogramming provisions except that the period of availability 
set forth in the previous proviso shall govern such transferred 
funds: Provided further, That any funds made available under 
this heading used by the Secretary for training or other 
administrative expenses shall be transferred to 
``Administration, Operations, and Management'' for non-
personnel expenses of the Department of Housing and Urban 
Development: Provided further, That any funding made available 
under this heading used by the Secretary for technology shall 
be transferred to ``Working Capital Fund.''

                            Housing Programs

  assisted housing stability and energy and green retrofit investments

    For assistance to owners of properties receiving project-
based assistance pursuant to section 202 of the Housing Act of 
1959 (12 U.S.C. 17012), section 811 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8013), or section 8 
of the United States Housing Act of 1937 as amended (42 U.S.C. 
1437f), $2,250,000,000, of which $2,000,000,000 shall be for an 
additional amount for paragraph (1) under the heading 
``Project-Based Rental Assistance'' in Public Law 110-161 for 
payments to owners for 12-month periods, and of which 
$250,000,000 shall be for grants or loans for energy retrofit 
and green investments in such assisted housing: Provided, That 
projects funded with grants or loans provided under this 
heading must comply with the requirements of subchapter IV of 
chapter 31 of title 40, United States Code: Provided further, 
That such grants or loans shall be provided through the 
policies, procedures, contracts, and transactional 
infrastructure of the authorized programs administered by the 
Office of Affordable Housing Preservation of the Department of 
Housing and Urban Development, on such terms and conditions as 
the Secretary of Housing and Urban Development deems 
appropriate to ensure the maintenance and preservation of the 
property, the continued operation and maintenance of energy 
efficiency technologies, and the timely expenditure of funds: 
Provided further, That the Secretary may provide incentives to 
owners to undertake energy or green retrofits as a part of such 
grant or loan terms, including, but not limited to, fees to 
cover investment oversight and implementation by said owner, or 
to encourage job creation for low-income or very low-income 
individuals: Provided further, That the Secretary may share in 
a portion of future property utility savings resulting from 
improvements made by grants or loans made available under this 
heading: Provided further, That the grants or loans shall 
include a financial assessment and physical inspection of such 
property: Provided further, That eligible owners must have at 
least a satisfactory management review rating, be in 
substantial compliance with applicable performance standards 
and legal requirements, and commit to an additional period of 
affordability determined by the Secretary, but of not fewer 
than 15 years: Provided further, That the Secretary shall 
undertake appropriate underwriting and oversight with respect 
to grant and loan transactions and may set aside up to 5 
percent of the funds made available under this heading for 
grants or loans for such purpose: Provided further, That the 
Secretary shall take steps necessary to ensure that owners 
receiving funding for energy and green retrofit investments 
under this heading shall expend such funding within 2 years of 
the date they received the funding: Provided further, That in 
administering funds appropriated or otherwise made available 
under this heading, the Secretary may waive or specify 
alternative requirements for any provision of any statute or 
regulation in connection with the obligation by the Secretary 
or the use of these funds (except for requirements related to 
fair housing, nondiscrimination, labor standards, and the 
environment), upon a finding that such a waiver is necessary to 
expedite or facilitate the use of such funds: Provided further, 
That of the funds provided under this heading for grants and 
loans, up to 1 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, 
research and evaluation activities: Provided further, That 
funds set aside in the previous proviso shall remain available 
until September 30, 2012: Provided further, That funding made 
available under this heading and used by the Secretary for 
personnel expenses related to administering funding under this 
heading shall be transferred to ``Housing Personnel 
Compensation and Benefits'' and shall retain the terms and 
conditions of this account including reprogramming provisos 
except that the period of availability set forth in the 
previous proviso shall govern such transferred funds: Provided 
further, That any funding made available under this heading 
used by the Secretary for training and other administrative 
expenses shall be transferred to ``Administration, Operations 
and Management'' for non-personnel expenses of the Department 
of Housing and Urban Development: Provided further, That any 
funding made available under this heading used by the Secretary 
for technology shall be transferred to ``Working Capital 
Fund.''

            Office of Lead Hazard Control and Healthy Homes

    For an additional amount for the ``Lead Hazard Reduction 
Program'', as authorized by section 1011 of the Residential 
Lead-Based Paint Hazard Reduction Act of 1992, and by sections 
501 and 502 of the Housing and Urban Development Act of 1974, 
$100,000,000, to remain available until September 30, 2011: 
Provided, That for purposes of environmental review, pursuant 
to the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) and other provisions of law that further the 
purposes of such Act, a grant under the Healthy Homes 
Initiative, Operation Lead Elimination Action Plan (LEAP), or 
the Lead Technical Studies program under this heading or under 
prior appropriations Acts for such purposes under this heading, 
shall be considered to be funds for a special project for 
purposes of section 305(e) of the Multifamily Housing Property 
Disposition Reform Act of 1994: Provided further, That funds 
shall be awarded first to applicants which had applied under 
the Lead Hazard Reduction Program Notices of Funding 
Availability for fiscal year 2008, and were found in the 
application review to be qualified for award, but were not 
awarded because of funding limitations, and that any funds 
which remain after reservation of funds for such grants shall 
be added to the amount of funds to be awarded under the Lead 
Hazard Reduction Program Notices of Funding Availability for 
fiscal year 2009: Provided further, That each applicant for the 
Lead Hazard Program Notices of Funding Availability for fiscal 
year 2009 shall submit a detailed plan and strategy that 
demonstrates adequate capacity that is acceptable to the 
Secretary to carry out the proposed use of funds: Provided 
further, That recipients of funds under this heading shall 
expend at least 50 percent of such funds within 2 years of the 
date on which funds become available to such jurisdictions for 
obligation, and expend 100 percent of such funds within 3 years 
of such date: Provided further, That if a recipient fails to 
comply with the 2-year expenditure requirement, the Secretary 
shall recapture all remaining funds awarded to the recipient 
and reallocate such funds to recipients that are in compliance 
with those requirements: Provided further, That if a recipient 
fails to comply with the 3-year expenditure requirement, the 
Secretary shall recapture the balance of the funds awarded to 
the recipient: Provided further, That in administering funds 
appropriated or otherwise made available under this heading, 
the Secretary may waive or specify alternative requirements for 
any provision of any statute or regulation in connection with 
the obligation by the Secretary or the use of these funds 
(except for requirements related to fair housing, 
nondiscrimination, labor standards and the environment), upon a 
finding that such a waiver is necessary to expedite or 
facilitate the use of such funds: Provided further, That of the 
funds made available under this heading, up to .5 percent shall 
be available for staffing, training, technical assistance, 
technology, monitoring, travel, enforcement, research and 
evaluation activities: Provided further, That funds set aside 
in the previous proviso shall remain available until September 
30, 2012: Provided further, That any funds made available under 
this heading used by the Secretary for personnel expenses 
related to administering funding under this heading shall be 
transferred to ``Personnel Compensation and Benefits, Office of 
Lead Hazard Control and Healthy Homes'' and shall retain the 
terms and conditions of this account, including reprogramming 
provisions, except that the period of availability set forth in 
the previous proviso shall govern such transferred funds: 
Provided further, That any funds made available under this 
heading used by the Secretary for training or other 
administrative expenses shall be transferred to 
``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban 
Development: Provided further, That any funds made available 
under this heading used by the Secretary for technology shall 
be transferred to ``Working Capital Fund''.

                     Management and Administration

                      office of inspector general

    For an additional amount for the necessary salaries and 
expenses of the Office of Inspector General in carrying out the 
Inspector General Act of 1978, as amended, $15,000,000, to 
remain available until September 30, 2013: Provided, That the 
Inspector General shall have independent authority over all 
personnel issues within this office.

    GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    Sec. 1202. FHA Loan Limits for 2009. (a) Loan Limit Floor 
Based on 2008 Levels.--For mortgages for which the mortgagee 
issues credit approval for the borrower during calendar year 
2009, if the dollar amount limitation on the principal 
obligation of a mortgage determined under section 203(b)(2) of 
the National Housing Act (12 U.S.C. 1709(b)(2)) for any size 
residence for any area is less than such dollar amount 
limitation that was in effect for such size residence for such 
area for 2008 pursuant to section 202 of the Economic Stimulus 
Act of 2008 (Public Law 110-185; 122 Stat. 620), 
notwithstanding any other provision of law, the maximum dollar 
amount limitation on the principal obligation of a mortgage for 
such size residence for such area for purposes of such section 
203(b)(2) shall be considered (except for purposes of section 
255(g) of such Act (12 U.S.C. 1715z-20(g))) to be such dollar 
amount limitation in effect for such size residence for such 
area for 2008.
    (b) Discretionary Authority for Sub-Areas.--Notwithstanding 
any other provision of law, if the Secretary of Housing and 
Urban Development determines, for any geographic area that is 
smaller than an area for which dollar amount limitations on the 
principal obligation of a mortgage are determined under section 
203(b)(2) of the National Housing Act, that a higher such 
maximum dollar amount limitation is warranted for any 
particular size or sizes of residences in such sub-area by 
higher median home prices in such sub-area, the Secretary may, 
for mortgages for which the mortgagee issues credit approval 
for the borrower during calendar year 2009, increase the 
maximum dollar amount limitation for such size or sizes of 
residences for such sub-area that is otherwise in effect 
(including pursuant to subsection (a) of this section), but in 
no case to an amount that exceeds the amount specified in 
section 202(a)(2) of the Economic Stimulus Act of 2008.
    Sec. 1203. GSE Conforming Loan Limits for 2009. (a) Loan 
Limit Floor Based on 2008 Levels.--For mortgages originated 
during calendar year 2009, if the limitation on the maximum 
original principal obligation of a mortgage that may be 
purchased by the Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation determined under section 
302(b)(2) of the Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), 
respectively, for any size residence for any area is less than 
such maximum original principal obligation limitation that was 
in effect for such size residence for such area for 2008 
pursuant to section 201 of the Economic Stimulus Act of 2008 
(Public Law 110-185; 122 Stat. 619), notwithstanding any other 
provision of law, the limitation on the maximum original 
principal obligation of a mortgage for such Association and 
Corporation for such size residence for such area shall be such 
maximum limitation in effect for such size residence for such 
area for 2008.
    (b) Discretionary Authority for Sub-Areas.--Notwithstanding 
any other provision of law, if the Director of the Federal 
Housing Finance Agency determines, for any geographic area that 
is smaller than an area for which limitations on the maximum 
original principal obligation of a mortgage are determined for 
the Federal National Mortgage Association or the Federal Home 
Loan Mortgage Corporation, that a higher such maximum original 
principal obligation limitation is warranted for any particular 
size or sizes of residences in such sub-area by higher median 
home prices in such sub-area, the Director may, for mortgages 
originated during 2009, increase the maximum original principal 
obligation limitation for such size or sizes of residences for 
such sub-area that is otherwise in effect (including pursuant 
to subsection (a) of this section) for such Association and 
Corporation, but in no case to an amount that exceeds the 
amount specified in the matter following the comma in section 
201(a)(1)(B) of the Economic Stimulus Act of 2008.
    Sec. 1204. FHA Reverse Mortgage Loan Limits for 2009.--For 
mortgages for which the mortgagee issues credit approval for 
the borrower during calendar year 2009, the second sentence of 
section 255(g) of the National Housing Act (12 U.S.C. 1715z-
20(g)) shall be considered to require that in no case may the 
benefits of insurance under such section 255 exceed 150 percent 
of the maximum dollar amount in effect under the sixth sentence 
of section 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)(2)).

               TITLE XIII--HEALTH INFORMATION TECHNOLOGY

SEC. 13001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

    (a) Short Title.--This title (and title IV of division B) 
may be cited as the ``Health Information Technology for 
Economic and Clinical Health Act'' or the ``HITECH Act''.
    (b) Table of Contents of Title.--The table of contents of 
this title is as follows:

Sec. 13001. Short title; table of contents of title.


         Subtitle A--Promotion of Health Information Technology


      Part 1--Improving Health Care Quality, Safety, and Efficiency

Sec. 13101. ONCHIT; standards development and adoption.


         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY


    ``Sec. 3000. Definitions.

        ``Subtitle A--Promotion of Health Information Technology

    ``Sec. 3001. Office of the National Coordinator for Health 
              Information Technology.
    ``Sec. 3002. HIT Policy Committee.
    ``Sec. 3003. HIT Standards Committee.
    ``Sec. 3004. Process for adoption of endorsed recommendations; 
              adoption of initial set of standards, implementation 
              specifications, and certification criteria.
    ``Sec. 3005. Application and use of adopted standards and 
              implementation specifications by Federal agencies.
    ``Sec. 3006. Voluntary application and use of adopted standards and 
              implementation specifications by private entities.
    ``Sec. 3007. Federal health information technology.
    ``Sec. 3008. Transitions.
    ``Sec. 3009. Miscellaneous provisions.
Sec. 13102. Technical amendment.

  Part 2--Application and Use of Adopted Health Information Technology 
                           Standards; Reports

Sec. 13111. Coordination of Federal activities with adopted standards 
          and implementation specifications.
Sec. 13112. Application to private entities.
Sec. 13113. Study and reports.

          Subtitle B--Testing of Health Information Technology

Sec. 13201. National Institute for Standards and Technology testing.
Sec. 13202. Research and development programs.

                  Subtitle C--Grants and Loans Funding

Sec. 13301. Grant, loan, and demonstration programs.

  ``Subtitle B--Incentives for the Use of Health Information Technology

    ``Sec. 3011. Immediate funding to strengthen the health information 
              technology infrastructure.
    ``Sec. 3012. Health information technology implementation 
              assistance.
    ``Sec. 3013. State grants to promote health information technology.
    ``Sec. 3014. Competitive grants to States and Indian tribes for the 
              development of loan programs to facilitate the widespread 
              adoption of certified EHR technology.
    ``Sec. 3015. Demonstration program to integrate information 
              technology into clinical education.
    ``Sec. 3016. Information technology professionals in health care.
    ``Sec. 3017. General grant and loan provisions.
    ``Sec. 3018. Authorization for appropriations.''

                           Subtitle D--Privacy

Sec. 13400. Definitions.

       Part 1--Improved Privacy Provisions and Security Provisions

Sec. 13401. Application of security provisions and penalties to business 
          associates of covered entities; annual guidance on security 
          provisions.
Sec. 13402. Notification in the case of breach.
Sec. 13403. Education on health information privacy.
Sec. 13404. Application of privacy provisions and penalties to business 
          associates of covered entities.
Sec. 13405. Restrictions on certain disclosures and sales of health 
          information; accounting of certain protected health 
          information disclosures; access to certain information in 
          electronic format.
Sec. 13406. Conditions on certain contacts as part of health care 
          operations.
Sec. 13407. Temporary breach notification requirement for vendors of 
          personal health records and other non-HIPAA covered entities.
Sec. 13408. Business associate contracts required for certain entities.
Sec. 13409. Clarification of application of wrongful disclosures 
          criminal penalties.
Sec. 13410. Improved enforcement.
Sec. 13411. Audits.

  Part 2--Relationship to Other Laws; Regulatory References; Effective 
                              Date; Reports

Sec. 13421. Relationship to other laws.
Sec. 13422. Regulatory references.
Sec. 13423. Effective date.
Sec. 13424. Studies, reports, guidance.

         Subtitle A--Promotion of Health Information Technology

     PART 1--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY

SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

    The Public Health Service Act (42 U.S.C. 201 et seq.) is 
amended by adding at the end the following:

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

``SEC. 3000. DEFINITIONS.

    ``In this title:
            ``(1) Certified ehr technology.--The term 
        `certified EHR technology' means a qualified electronic 
        health record that is certified pursuant to section 
        3001(c)(5) as meeting standards adopted under section 
        3004 that are applicable to the type of record involved 
        (as determined by the Secretary, such as an ambulatory 
        electronic health record for office-based physicians or 
        an inpatient hospital electronic health record for 
        hospitals).
            ``(2) Enterprise integration.--The term `enterprise 
        integration' means the electronic linkage of health 
        care providers, health plans, the government, and other 
        interested parties, to enable the electronic exchange 
        and use of health information among all the components 
        in the health care infrastructure in accordance with 
        applicable law, and such term includes related 
        application protocols and other related standards.
            ``(3) Health care provider.--The term `health care 
        provider' includes a hospital, skilled nursing 
        facility, nursing facility, home health entity or other 
        long term care facility, health care clinic, community 
        mental health center (as defined in section 
        1913(b)(1)), renal dialysis facility, blood center, 
        ambulatory surgical center described in section 1833(i) 
        of the Social Security Act, emergency medical services 
        provider, Federally qualified health center, group 
        practice, a pharmacist, a pharmacy, a laboratory, a 
        physician (as defined in section 1861(r) of the Social 
        Security Act), a practitioner (as described in section 
        1842(b)(18)(C) of the Social Security Act), a provider 
        operated by, or under contract with, the Indian Health 
        Service or by an Indian tribe (as defined in the Indian 
        Self-Determination and Education Assistance Act), 
        tribal organization, or urban Indian organization (as 
        defined in section 4 of the Indian Health Care 
        Improvement Act), a rural health clinic, a covered 
        entity under section 340B, an ambulatory surgical 
        center described in section 1833(i) of the Social 
        Security Act, a therapist (as defined in section 
        1848(k)(3)(B)(iii) of the Social Security Act), and any 
        other category of health care facility, entity, 
        practitioner, or clinician determined appropriate by 
        the Secretary.
            ``(4) Health information.--The term `health 
        information' has the meaning given such term in section 
        1171(4) of the Social Security Act.
            ``(5) Health information technology.--The term 
        `health information technology' means hardware, 
        software, integrated technologies or related licenses, 
        intellectual property, upgrades, or packaged solutions 
        sold as services that are designed for or support the 
        use by health care entities or patients for the 
        electronic creation, maintenance, access, or exchange 
        of health information.
            ``(6) Health plan.--The term `health plan' has the 
        meaning given such term in section 1171(5) of the 
        Social Security Act.
            ``(7) HIT policy committee.--The term `HIT Policy 
        Committee' means such Committee established under 
        section 3002(a).
            ``(8) HIT standards committee.--The term `HIT 
        Standards Committee' means such Committee established 
        under section 3003(a).
            ``(9) Individually identifiable health 
        information.--The term `individually identifiable 
        health information' has the meaning given such term in 
        section 1171(6) of the Social Security Act.
            ``(10) Laboratory.--The term `laboratory' has the 
        meaning given such term in section 353(a).
            ``(11) National coordinator.--The term `National 
        Coordinator' means the head of the Office of the 
        National Coordinator for Health Information Technology 
        established under section 3001(a).
            ``(12) Pharmacist.--The term `pharmacist' has the 
        meaning given such term in section 804(2) of the 
        Federal Food, Drug, and Cosmetic Act.
            ``(13) Qualified electronic health record.--The 
        term `qualified electronic health record' means an 
        electronic record of health-related information on an 
        individual that--
                    ``(A) includes patient demographic and 
                clinical health information, such as medical 
                history and problem lists; and
                    ``(B) has the capacity--
                            ``(i) to provide clinical decision 
                        support;
                            ``(ii) to support physician order 
                        entry;
                            ``(iii) to capture and query 
                        information relevant to health care 
                        quality; and
                            ``(iv) to exchange electronic 
                        health information with, and integrate 
                        such information from other sources.
            ``(14) State.--The term `State' means each of the 
        several States, the District of Columbia, Puerto Rico, 
        the Virgin Islands, Guam, American Samoa, and the 
        Northern Mariana Islands.

        ``Subtitle A--Promotion of Health Information Technology

``SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION 
                    TECHNOLOGY.

    ``(a) Establishment.--There is established within the 
Department of Health and Human Services an Office of the 
National Coordinator for Health Information Technology 
(referred to in this section as the `Office'). The Office shall 
be headed by a National Coordinator who shall be appointed by 
the Secretary and shall report directly to the Secretary.
    ``(b) Purpose.--The National Coordinator shall perform the 
duties under subsection (c) in a manner consistent with the 
development of a nationwide health information technology 
infrastructure that allows for the electronic use and exchange 
of information and that--
            ``(1) ensures that each patient's health 
        information is secure and protected, in accordance with 
        applicable law;
            ``(2) improves health care quality, reduces medical 
        errors, reduces health disparities, and advances the 
        delivery of patient-centered medical care;
            ``(3) reduces health care costs resulting from 
        inefficiency, medical errors, inappropriate care, 
        duplicative care, and incomplete information;
            ``(4) provides appropriate information to help 
        guide medical decisions at the time and place of care;
            ``(5) ensures the inclusion of meaningful public 
        input in such development of such infrastructure;
            ``(6) improves the coordination of care and 
        information among hospitals, laboratories, physician 
        offices, and other entities through an effective 
        infrastructure for the secure and authorized exchange 
        of health care information;
            ``(7) improves public health activities and 
        facilitates the early identification and rapid response 
        to public health threats and emergencies, including 
        bioterror events and infectious disease outbreaks;
            ``(8) facilitates health and clinical research and 
        health care quality;
            ``(9) promotes early detection, prevention, and 
        management of chronic diseases;
            ``(10) promotes a more effective marketplace, 
        greater competition, greater systems analysis, 
        increased consumer choice, and improved outcomes in 
        health care services; and
            ``(11) improves efforts to reduce health 
        disparities.
    ``(c) Duties of the National Coordinator.--
            ``(1) Standards.--The National Coordinator shall--
                    ``(A) review and determine whether to 
                endorse each standard, implementation 
                specification, and certification criterion for 
                the electronic exchange and use of health 
                information that is recommended by the HIT 
                Standards Committee under section 3003 for 
                purposes of adoption under section 3004;
                    ``(B) make such determinations under 
                subparagraph (A), and report to the Secretary 
                such determinations, not later than 45 days 
                after the date the recommendation is received 
                by the Coordinator; and
                    ``(C) review Federal health information 
                technology investments to ensure that Federal 
                health information technology programs are 
                meeting the objectives of the strategic plan 
                published under paragraph (3).
            ``(2) HIT policy coordination.--
                    ``(A) In general.--The National Coordinator 
                shall coordinate health information technology 
                policy and programs of the Department with 
                those of other relevant executive branch 
                agencies with a goal of avoiding duplication of 
                efforts and of helping to ensure that each 
                agency undertakes health information technology 
                activities primarily within the areas of its 
                greatest expertise and technical capability and 
                in a manner towards a coordinated national 
                goal.
                    ``(B) HIT policy and standards 
                committees.--The National Coordinator shall be 
                a leading member in the establishment and 
                operations of the HIT Policy Committee and the 
                HIT Standards Committee and shall serve as a 
                liaison among those two Committees and the 
                Federal Government.
            ``(3) Strategic plan.--
                    ``(A) In general.--The National Coordinator 
                shall, in consultation with other appropriate 
                Federal agencies (including the National 
                Institute of Standards and Technology), update 
                the Federal Health IT Strategic Plan (developed 
                as of June 3, 2008) to include specific 
                objectives, milestones, and metrics with 
                respect to the following:
                            ``(i) The electronic exchange and 
                        use of health information and the 
                        enterprise integration of such 
                        information.
                            ``(ii) The utilization of an 
                        electronic health record for each 
                        person in the United States by 2014.
                            ``(iii) The incorporation of 
                        privacy and security protections for 
                        the electronic exchange of an 
                        individual's individually identifiable 
                        health information.
                            ``(iv) Ensuring security methods to 
                        ensure appropriate authorization and 
                        electronic authentication of health 
                        information and specifying technologies 
                        or methodologies for rendering health 
                        information unusable, unreadable, or 
                        indecipherable.
                            ``(v) Specifying a framework for 
                        coordination and flow of 
                        recommendations and policies under this 
                        subtitle among the Secretary, the 
                        National Coordinator, the HIT Policy 
                        Committee, the HIT Standards Committee, 
                        and other health information exchanges 
                        and other relevant entities.
                            ``(vi) Methods to foster the public 
                        understanding of health information 
                        technology.
                            ``(vii) Strategies to enhance the 
                        use of health information technology in 
                        improving the quality of health care, 
                        reducing medical errors, reducing 
                        health disparities, improving public 
                        health, increasing prevention and 
                        coordination with community resources, 
                        and improving the continuity of care 
                        among health care settings.
                            ``(viii) Specific plans for 
                        ensuring that populations with unique 
                        needs, such as children, are 
                        appropriately addressed in the 
                        technology design, as appropriate, 
                        which may include technology that 
                        automates enrollment and retention for 
                        eligible individuals.
                    ``(B) Collaboration.--The strategic plan 
                shall be updated through collaboration of 
                public and private entities.
                    ``(C) Measurable outcome goals.--The 
                strategic plan update shall include measurable 
                outcome goals.
                    ``(D) Publication.--The National 
                Coordinator shall republish the strategic plan, 
                including all updates.
            ``(4) Website.--The National Coordinator shall 
        maintain and frequently update an Internet website on 
        which there is posted information on the work, 
        schedules, reports, recommendations, and other 
        information to ensure transparency in promotion of a 
        nationwide health information technology 
        infrastructure.
            ``(5) Certification.--
                    ``(A) In general.--The National 
                Coordinator, in consultation with the Director 
                of the National Institute of Standards and 
                Technology, shall keep or recognize a program 
                or programs for the voluntary certification of 
                health information technology as being in 
                compliance with applicable certification 
                criteria adopted under this subtitle. Such 
                program shall include, as appropriate, testing 
                of the technology in accordance with section 
                13201(b) of the Health Information Technology 
                for Economic and Clinical Health Act.
                    ``(B) Certification criteria described.--In 
                this title, the term `certification criteria' 
                means, with respect to standards and 
                implementation specifications for health 
                information technology, criteria to establish 
                that the technology meets such standards and 
                implementation specifications.
            ``(6) Reports and publications.--
                    ``(A) Report on additional funding or 
                authority needed.--Not later than 12 months 
                after the date of the enactment of this title, 
                the National Coordinator shall submit to the 
                appropriate committees of jurisdiction of the 
                House of Representatives and the Senate a 
                report on any additional funding or authority 
                the Coordinator or the HIT Policy Committee or 
                HIT Standards Committee requires to evaluate 
                and develop standards, implementation 
                specifications, and certification criteria, or 
                to achieve full participation of stakeholders 
                in the adoption of a nationwide health 
                information technology infrastructure that 
                allows for the electronic use and exchange of 
                health information.
                    ``(B) Implementation report.--The National 
                Coordinator shall prepare a report that 
                identifies lessons learned from major public 
                and private health care systems in their 
                implementation of health information 
                technology, including information on whether 
                the technologies and practices developed by 
                such systems may be applicable to and usable in 
                whole or in part by other health care 
                providers.
                    ``(C) Assessment of impact of hit on 
                communities with health disparities and 
                uninsured, underinsured, and medically 
                underserved areas.--The National Coordinator 
                shall assess and publish the impact of health 
                information technology in communities with 
                health disparities and in areas with a high 
                proportion of individuals who are uninsured, 
                underinsured, and medically underserved 
                individuals (including urban and rural areas) 
                and identify practices to increase the adoption 
                of such technology by health care providers in 
                such communities, and the use of health 
                information technology to reduce and better 
                manage chronic diseases.
                    ``(D) Evaluation of benefits and costs of 
                the electronic use and exchange of health 
                information.--The National Coordinator shall 
                evaluate and publish evidence on the benefits 
                and costs of the electronic use and exchange of 
                health information and assess to whom these 
                benefits and costs accrue.
                    ``(E) Resource requirements.--The National 
                Coordinator shall estimate and publish 
                resources required annually to reach the goal 
                of utilization of an electronic health record 
                for each person in the United States by 2014, 
                including--
                            ``(i) the required level of Federal 
                        funding;
                            ``(ii) expectations for regional, 
                        State, and private investment;
                            ``(iii) the expected contributions 
                        by volunteers to activities for the 
                        utilization of such records; and
                            ``(iv) the resources needed to 
                        establish a health information 
                        technology workforce sufficient to 
                        support this effort (including 
                        education programs in medical 
                        informatics and health information 
                        management).
            ``(7) Assistance.--The National Coordinator may 
        provide financial assistance to consumer advocacy 
        groups and not-for-profit entities that work in the 
        public interest for purposes of defraying the cost to 
        such groups and entities to participate under, whether 
        in whole or in part, the National Technology Transfer 
        Act of 1995 (15 U.S.C. 272 note).
            ``(8) Governance for nationwide health information 
        network.--The National Coordinator shall establish a 
        governance mechanism for the nationwide health 
        information network.
    ``(d) Detail of Federal Employees.--
            ``(1) In general.--Upon the request of the National 
        Coordinator, the head of any Federal agency is 
        authorized to detail, with or without reimbursement 
        from the Office, any of the personnel of such agency to 
        the Office to assist it in carrying out its duties 
        under this section.
            ``(2) Effect of detail.--Any detail of personnel 
        under paragraph (1) shall--
                    ``(A) not interrupt or otherwise affect the 
                civil service status or privileges of the 
                Federal employee; and
                    ``(B) be in addition to any other staff of 
                the Department employed by the National 
                Coordinator.
            ``(3) Acceptance of detailees.--Notwithstanding any 
        other provision of law, the Office may accept detailed 
        personnel from other Federal agencies without regard to 
        whether the agency described under paragraph (1) is 
        reimbursed.
    ``(e) Chief Privacy Officer of the Office of the National 
Coordinator.--Not later than 12 months after the date of the 
enactment of this title, the Secretary shall appoint a Chief 
Privacy Officer of the Office of the National Coordinator, 
whose duty it shall be to advise the National Coordinator on 
privacy, security, and data stewardship of electronic health 
information and to coordinate with other Federal agencies (and 
similar privacy officers in such agencies), with State and 
regional efforts, and with foreign countries with regard to the 
privacy, security, and data stewardship of electronic 
individually identifiable health information.

``SEC. 3002. HIT POLICY COMMITTEE.

    ``(a) Establishment.--There is established a HIT Policy 
Committee to make policy recommendations to the National 
Coordinator relating to the implementation of a nationwide 
health information technology infrastructure, including 
implementation of the strategic plan described in section 
3001(c)(3).
    ``(b) Duties.--
            ``(1) Recommendations on health information 
        technology infrastructure.--The HIT Policy Committee 
        shall recommend a policy framework for the development 
        and adoption of a nationwide health information 
        technology infrastructure that permits the electronic 
        exchange and use of health information as is consistent 
        with the strategic plan under section 3001(c)(3) and 
        that includes the recommendations under paragraph (2). 
        The Committee shall update such recommendations and 
        make new recommendations as appropriate.
            ``(2) Specific areas of standard development.--
                    ``(A) In general.--The HIT Policy Committee 
                shall recommend the areas in which standards, 
                implementation specifications, and 
                certification criteria are needed for the 
                electronic exchange and use of health 
                information for purposes of adoption under 
                section 3004 and shall recommend an order of 
                priority for the development, harmonization, 
                and recognition of such standards, 
                specifications, and certification criteria 
                among the areas so recommended. Such standards 
                and implementation specifications shall include 
                named standards, architectures, and software 
                schemes for the authentication and security of 
                individually identifiable health information 
                and other information as needed to ensure the 
                reproducible development of common solutions 
                across disparate entities.
                    ``(B) Areas required for consideration.--
                For purposes of subparagraph (A), the HIT 
                Policy Committee shall make recommendations for 
                at least the following areas:
                            ``(i) Technologies that protect the 
                        privacy of health information and 
                        promote security in a qualified 
                        electronic health record, including for 
                        the segmentation and protection from 
                        disclosure of specific and sensitive 
                        individually identifiable health 
                        information with the goal of minimizing 
                        the reluctance of patients to seek care 
                        (or disclose information about a 
                        condition) because of privacy concerns, 
                        in accordance with applicable law, and 
                        for the use and disclosure of limited 
                        data sets of such information.
                            ``(ii) A nationwide health 
                        information technology infrastructure 
                        that allows for the electronic use and 
                        accurate exchange of health 
                        information.
                            ``(iii) The utilization of a 
                        certified electronic health record for 
                        each person in the United States by 
                        2014.
                            ``(iv) Technologies that as a part 
                        of a qualified electronic health record 
                        allow for an accounting of disclosures 
                        made by a covered entity (as defined 
                        for purposes of regulations promulgated 
                        under section 264(c) of the Health 
                        Insurance Portability and 
                        Accountability Act of 1996) for 
                        purposes of treatment, payment, and 
                        health care operations (as such terms 
                        are defined for purposes of such 
                        regulations).
                            ``(v) The use of certified 
                        electronic health records to improve 
                        the quality of health care, such as by 
                        promoting the coordination of health 
                        care and improving continuity of health 
                        care among health care providers, by 
                        reducing medical errors, by improving 
                        population health, by reducing health 
                        disparities, by reducing chronic 
                        disease, and by advancing research and 
                        education.
                            ``(vi) Technologies that allow 
                        individually identifiable health 
                        information to be rendered unusable, 
                        unreadable, or indecipherable to 
                        unauthorized individuals when such 
                        information is transmitted in the 
                        nationwide health information network 
                        or physically transported outside of 
                        the secured, physical perimeter of a 
                        health care provider, health plan, or 
                        health care clearinghouse.
                            ``(vii) The use of electronic 
                        systems to ensure the comprehensive 
                        collection of patient demographic data, 
                        including, at a minimum, race, 
                        ethnicity, primary language, and gender 
                        information.
                            ``(viii) Technologies that address 
                        the needs of children and other 
                        vulnerable populations.
                    ``(C) Other areas for consideration.--In 
                making recommendations under subparagraph (A), 
                the HIT Policy Committee may consider the 
                following additional areas:
                            ``(i) The appropriate uses of a 
                        nationwide health information 
                        infrastructure, including for purposes 
                        of--
                                    ``(I) the collection of 
                                quality data and public 
                                reporting;
                                    ``(II) biosurveillance and 
                                public health;
                                    ``(III) medical and 
                                clinical research; and
                                    ``(IV) drug safety.
                            ``(ii) Self-service technologies 
                        that facilitate the use and exchange of 
                        patient information and reduce wait 
                        times.
                            ``(iii) Telemedicine technologies, 
                        in order to reduce travel requirements 
                        for patients in remote areas.
                            ``(iv) Technologies that facilitate 
                        home health care and the monitoring of 
                        patients recuperating at home.
                            ``(v) Technologies that help reduce 
                        medical errors.
                            ``(vi) Technologies that facilitate 
                        the continuity of care among health 
                        settings.
                            ``(vii) Technologies that meet the 
                        needs of diverse populations.
                            ``(viii) Methods to facilitate 
                        secure access by an individual to such 
                        individual's protected health 
                        information.
                            ``(ix) Methods, guidelines, and 
                        safeguards to facilitate secure access 
                        to patient information by a family 
                        member, caregiver, or guardian acting 
                        on behalf of a patient due to age-
                        related and other disability, cognitive 
                        impairment, or dementia.
                            ``(x) Any other technology that the 
                        HIT Policy Committee finds to be among 
                        the technologies with the greatest 
                        potential to improve the quality and 
                        efficiency of health care.
            ``(3) Forum.--The HIT Policy Committee shall serve 
        as a forum for broad stakeholder input with specific 
        expertise in policies relating to the matters described 
        in paragraphs (1) and (2).
            ``(4) Consistency with evaluation conducted under 
        mippa.--
                    ``(A) Requirement for consistency.--The HIT 
                Policy Committee shall ensure that 
                recommendations made under paragraph (2)(B)(vi) 
                are consistent with the evaluation conducted 
                under section 1809(a) of the Social Security 
                Act.
                    ``(B) Scope.--Nothing in subparagraph (A) 
                shall be construed to limit the recommendations 
                under paragraph (2)(B)(vi) to the elements 
                described in section 1809(a)(3) of the Social 
                Security Act.
                    ``(C) Timing.--The requirement under 
                subparagraph (A) shall be applicable to the 
                extent that evaluations have been conducted 
                under section 1809(a) of the Social Security 
                Act, regardless of whether the report described 
                in subsection (b) of such section has been 
                submitted.
    ``(c) Membership and Operations.--
            ``(1) In general.--The National Coordinator shall 
        take a leading position in the establishment and 
        operations of the HIT Policy Committee.
            ``(2) Membership.--The HIT Policy Committee shall 
        be composed of members to be appointed as follows:
                    ``(A) 3 members shall be appointed by the 
                Secretary, 1 of whom shall be appointed to 
                represent the Department of Health and Human 
                Services and 1 of whom shall be a public health 
                official.
                    ``(B) 1 member shall be appointed by the 
                majority leader of the Senate.
                    ``(C) 1 member shall be appointed by the 
                minority leader of the Senate.
                    ``(D) 1 member shall be appointed by the 
                Speaker of the House of Representatives.
                    ``(E) 1 member shall be appointed by the 
                minority leader of the House of 
                Representatives.
                    ``(F) Such other members as shall be 
                appointed by the President as representatives 
                of other relevant Federal agencies.
                    ``(G) 13 members shall be appointed by the 
                Comptroller General of the United States of 
                whom--
                            ``(i) 3 members shall be advocates 
                        for patients or consumers;
                            ``(ii) 2 members shall represent 
                        health care providers, one of which 
                        shall be a physician;
                            ``(iii) 1 member shall be from a 
                        labor organization representing health 
                        care workers;
                            ``(iv) 1 member shall have 
                        expertise in health information privacy 
                        and security;
                            ``(v) 1 member shall have expertise 
                        in improving the health of vulnerable 
                        populations;
                            ``(vi) 1 member shall be from the 
                        research community;
                            ``(vii) 1 member shall represent 
                        health plans or other third-party 
                        payers;
                            ``(viii) 1 member shall represent 
                        information technology vendors;
                            ``(ix) 1 member shall represent 
                        purchasers or employers; and
                            ``(x) 1 member shall have expertise 
                        in health care quality measurement and 
                        reporting.
            ``(3) Participation.--The members of the HIT Policy 
        Committee appointed under paragraph (2) shall represent 
        a balance among various sectors of the health care 
        system so that no single sector unduly influences the 
        recommendations of the Policy Committee.
            ``(4) Terms.--
                    ``(A) In general.--The terms of the members 
                of the HIT Policy Committee shall be for 3 
                years, except that the Comptroller General 
                shall designate staggered terms for the members 
                first appointed.
                    ``(B) Vacancies.--Any member appointed to 
                fill a vacancy in the membership of the HIT 
                Policy Committee that occurs prior to the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed 
                only for the remainder of that term. A member 
                may serve after the expiration of that member's 
                term until a successor has been appointed. A 
                vacancy in the HIT Policy Committee shall be 
                filled in the manner in which the original 
                appointment was made.
            ``(5) Outside involvement.--The HIT Policy 
        Committee shall ensure an opportunity for the 
        participation in activities of the Committee of outside 
        advisors, including individuals with expertise in the 
        development of policies for the electronic exchange and 
        use of health information, including in the areas of 
        health information privacy and security.
            ``(6) Quorum.--A majority of the members of the HIT 
        Policy Committee shall constitute a quorum for purposes 
        of voting, but a lesser number of members may meet and 
        hold hearings.
            ``(7) Failure of initial appointment.--If, on the 
        date that is 45 days after the date of enactment of 
        this title, an official authorized under paragraph (2) 
        to appoint one or more members of the HIT Policy 
        Committee has not appointed the full number of members 
        that such paragraph authorizes such official to 
        appoint, the Secretary is authorized to appoint such 
        members.
            ``(8) Consideration.--The National Coordinator 
        shall ensure that the relevant and available 
        recommendations and comments from the National 
        Committee on Vital and Health Statistics are considered 
        in the development of policies.
    ``(d) Application of FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.), other than section 14 of such Act, shall 
apply to the HIT Policy Committee.
    ``(e) Publication.--The Secretary shall provide for 
publication in the Federal Register and the posting on the 
Internet website of the Office of the National Coordinator for 
Health Information Technology of all policy recommendations 
made by the HIT Policy Committee under this section.

``SEC. 3003. HIT STANDARDS COMMITTEE.

    ``(a) Establishment.--There is established a committee to 
be known as the HIT Standards Committee to recommend to the 
National Coordinator standards, implementation specifications, 
and certification criteria for the electronic exchange and use 
of health information for purposes of adoption under section 
3004, consistent with the implementation of the strategic plan 
described in section 3001(c)(3) and beginning with the areas 
listed in section 3002(b)(2)(B) in accordance with policies 
developed by the HIT Policy Committee.
    ``(b) Duties.--
            ``(1) Standards development.--
                    ``(A) In general.--The HIT Standards 
                Committee shall recommend to the National 
                Coordinator standards, implementation 
                specifications, and certification criteria 
                described in subsection (a) that have been 
                developed, harmonized, or recognized by the HIT 
                Standards Committee. The HIT Standards 
                Committee shall update such recommendations and 
                make new recommendations as appropriate, 
                including in response to a notification sent 
                under section 3004(a)(2)(B). Such 
                recommendations shall be consistent with the 
                latest recommendations made by the HIT Policy 
                Committee.
                    ``(B) Harmonization.--The HIT Standards 
                Committee shall recognize harmonized or updated 
                standards from an entity or entities for the 
                purpose of harmonizing or updating standards 
                and implementation specifications in order to 
                achieve uniform and consistent implementation 
                of the standards and implementation 
                specifications.
                    ``(C) Pilot testing of standards and 
                implementation specifications.--In the 
                development, harmonization, or recognition of 
                standards and implementation specifications, 
                the HIT Standards Committee shall, as 
                appropriate, provide for the testing of such 
                standards and specifications by the National 
                Institute for Standards and Technology under 
                section 13201(a) of the Health Information 
                Technology for Economic and Clinical Health 
                Act.
                    ``(D) Consistency.--The standards, 
                implementation specifications, and 
                certification criteria recommended under this 
                subsection shall be consistent with the 
                standards for information transactions and data 
                elements adopted pursuant to section 1173 of 
                the Social Security Act.
            ``(2) Forum.--The HIT Standards Committee shall 
        serve as a forum for the participation of a broad range 
        of stakeholders to provide input on the development, 
        harmonization, and recognition of standards, 
        implementation specifications, and certification 
        criteria necessary for the development and adoption of 
        a nationwide health information technology 
        infrastructure that allows for the electronic use and 
        exchange of health information.
            ``(3) Schedule.--Not later than 90 days after the 
        date of the enactment of this title, the HIT Standards 
        Committee shall develop a schedule for the assessment 
        of policy recommendations developed by the HIT Policy 
        Committee under section 3002. The HIT Standards 
        Committee shall update such schedule annually. The 
        Secretary shall publish such schedule in the Federal 
        Register.
            ``(4) Public input.--The HIT Standards Committee 
        shall conduct open public meetings and develop a 
        process to allow for public comment on the schedule 
        described in paragraph (3) and recommendations 
        described in this subsection. Under such process 
        comments shall be submitted in a timely manner after 
        the date of publication of a recommendation under this 
        subsection.
            ``(5) Consideration.--The National Coordinator 
        shall ensure that the relevant and available 
        recommendations and comments from the National 
        Committee on Vital and Health Statistics are considered 
        in the development of standards.
    ``(c) Membership and Operations.--
            ``(1) In general.--The National Coordinator shall 
        take a leading position in the establishment and 
        operations of the HIT Standards Committee.
            ``(2) Membership.--The membership of the HIT 
        Standards Committee shall at least reflect providers, 
        ancillary healthcare workers, consumers, purchasers, 
        health plans, technology vendors, researchers, relevant 
        Federal agencies, and individuals with technical 
        expertise on health care quality, privacy and security, 
        and on the electronic exchange and use of health 
        information.
            ``(3) Participation.--The members of the HIT 
        Standards Committee appointed under this subsection 
        shall represent a balance among various sectors of the 
        health care system so that no single sector unduly 
        influences the recommendations of such Committee.
            ``(4) Outside involvement.--The HIT Policy 
        Committee shall ensure an opportunity for the 
        participation in activities of the Committee of outside 
        advisors, including individuals with expertise in the 
        development of standards for the electronic exchange 
        and use of health information, including in the areas 
        of health information privacy and security.
            ``(5) Balance among sectors.--In developing the 
        procedures for conducting the activities of the HIT 
        Standards Committee, the HIT Standards Committee shall 
        act to ensure a balance among various sectors of the 
        health care system so that no single sector unduly 
        influences the actions of the HIT Standards Committee.
            ``(6) Assistance.--For the purposes of carrying out 
        this section, the Secretary may provide or ensure that 
        financial assistance is provided by the HIT Standards 
        Committee to defray in whole or in part any membership 
        fees or dues charged by such Committee to those 
        consumer advocacy groups and not for profit entities 
        that work in the public interest as a part of their 
        mission.
    ``(d) Application of FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.), other than section 14, shall apply to the 
HIT Standards Committee.
    ``(e) Publication.--The Secretary shall provide for 
publication in the Federal Register and the posting on the 
Internet website of the Office of the National Coordinator for 
Health Information Technology of all recommendations made by 
the HIT Standards Committee under this section.

``SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS; ADOPTION 
                    OF INITIAL SET OF STANDARDS, IMPLEMENTATION 
                    SPECIFICATIONS, AND CERTIFICATION CRITERIA.

    ``(a) Process for Adoption of Endorsed Recommendations.--
            ``(1) Review of endorsed standards, implementation 
        specifications, and certification criteria.--Not later 
        than 90 days after the date of receipt of standards, 
        implementation specifications, or certification 
        criteria endorsed under section 3001(c), the Secretary, 
        in consultation with representatives of other relevant 
        Federal agencies, shall jointly review such standards, 
        implementation specifications, or certification 
        criteria and shall determine whether or not to propose 
        adoption of such standards, implementation 
        specifications, or certification criteria.
            ``(2) Determination to adopt standards, 
        implementation specifications, and certification 
        criteria.--If the Secretary determines--
                    ``(A) to propose adoption of any grouping 
                of such standards, implementation 
                specifications, or certification criteria, the 
                Secretary shall, by regulation under section 
                553 of title 5, United States Code, determine 
                whether or not to adopt such grouping of 
                standards, implementation specifications, or 
                certification criteria; or
                    ``(B) not to propose adoption of any 
                grouping of standards, implementation 
                specifications, or certification criteria, the 
                Secretary shall notify the National Coordinator 
                and the HIT Standards Committee in writing of 
                such determination and the reasons for not 
                proposing the adoption of such recommendation.
            ``(3) Publication.--The Secretary shall provide for 
        publication in the Federal Register of all 
        determinations made by the Secretary under paragraph 
        (1).
    ``(b) Adoption of Standards, Implementation Specifications, 
and Certification Criteria.--
            ``(1) In general.--Not later than December 31, 
        2009, the Secretary shall, through the rulemaking 
        process consistent with subsection (a)(2)(A), adopt an 
        initial set of standards, implementation 
        specifications, and certification criteria for the 
        areas required for consideration under section 
        3002(b)(2)(B). The rulemaking for the initial set of 
        standards, implementation specifications, and 
        certification criteria may be issued on an interim, 
        final basis.
            ``(2) Application of current standards, 
        implementation specifications, and certification 
        criteria.--The standards, implementation 
        specifications, and certification criteria adopted 
        before the date of the enactment of this title through 
        the process existing through the Office of the National 
        Coordinator for Health Information Technology may be 
        applied towards meeting the requirement of paragraph 
        (1).
            ``(3) Subsequent standards activity.--The Secretary 
        shall adopt additional standards, implementation 
        specifications, and certification criteria as necessary 
        and consistent with the schedule published under 
        section 3003(b)(2).

``SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND 
                    IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGENCIES.

    ``For requirements relating to the application and use by 
Federal agencies of the standards and implementation 
specifications adopted under section 3004, see section 13111 of 
the Health Information Technology for Economic and Clinical 
Health Act.

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

    ``(a) In General.--Except as provided under section 13112 
of the HITECH Act, nothing in such Act or in the amendments 
made by such Act shall be construed--
            ``(1) to require a private entity to adopt or 
        comply with a standard or implementation specification 
        adopted under section 3004; or
            ``(2) to provide a Federal agency authority, other 
        than the authority such agency may have under other 
        provisions of law, to require a private entity to 
        comply with such a standard or implementation 
        specification.
    ``(b) Rule of Construction.--Nothing in this subtitle shall 
be construed to require that a private entity that enters into 
a contract with the Federal Government apply or use the 
standards and implementation specifications adopted under 
section 3004 with respect to activities not related to the 
contract.

``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

    ``(a) In General.--The National Coordinator shall support 
the development and routine updating of qualified electronic 
health record technology (as defined in section 3000) 
consistent with subsections (b) and (c) and make available such 
qualified electronic health record technology unless the 
Secretary determines through an assessment that the needs and 
demands of providers are being substantially and adequately met 
through the marketplace.
    ``(b) Certification.--In making such electronic health 
record technology publicly available, the National Coordinator 
shall ensure that the qualified electronic health record 
technology described in subsection (a) is certified under the 
program developed under section 3001(c)(3) to be in compliance 
with applicable standards adopted under section 3003(a).
    ``(c) Authorization To Charge a Nominal Fee.--The National 
Coordinator may impose a nominal fee for the adoption by a 
health care provider of the health information technology 
system developed or approved under subsection (a) and (b). Such 
fee shall take into account the financial circumstances of 
smaller providers, low income providers, and providers located 
in rural or other medically underserved areas.
    ``(d) Rule of Construction.--Nothing in this section shall 
be construed to require that a private or government entity 
adopt or use the technology provided under this section.

``SEC. 3008. TRANSITIONS.

    ``(a) ONCHIT.--To the extent consistent with section 3001, 
all functions, personnel, assets, liabilities, and 
administrative actions applicable to the National Coordinator 
for Health Information Technology appointed under Executive 
Order No. 13335 or the Office of such National Coordinator on 
the date before the date of the enactment of this title shall 
be transferred to the National Coordinator appointed under 
section 3001(a) and the Office of such National Coordinator as 
of the date of the enactment of this title.
    ``(b) National EHealth Collaborative.--Nothing in sections 
3002 or 3003 or this subsection shall be construed as 
prohibiting the AHIC Successor, Inc. doing business as the 
National eHealth Collaborative from modifying its charter, 
duties, membership, and any other structure or function 
required to be consistent with section 3002 and 3003 so as to 
allow the Secretary to recognize such AHIC Successor, Inc. as 
the HIT Policy Committee or the HIT Standards Committee.
    ``(c) Consistency of Recommendations.--In carrying out 
section 3003(b)(1)(A), until recommendations are made by the 
HIT Policy Committee, recommendations of the HIT Standards 
Committee shall be consistent with the most recent 
recommendations made by such AHIC Successor, Inc.

``SEC. 3009. MISCELLANEOUS PROVISIONS.

    ``(a) Relation to HIPAA Privacy and Security Law.--
            ``(1) In general.--With respect to the relation of 
        this title to HIPAA privacy and security law:
                    ``(A) This title may not be construed as 
                having any effect on the authorities of the 
                Secretary under HIPAA privacy and security law.
                    ``(B) The purposes of this title include 
                ensuring that the health information technology 
                standards and implementation specifications 
                adopted under section 3004 take into account 
                the requirements of HIPAA privacy and security 
                law.
            ``(2) Definition.--For purposes of this section, 
        the term `HIPAA privacy and security law' means--
                    ``(A) the provisions of part C of title XI 
                of the Social Security Act, section 264 of the 
                Health Insurance Portability and Accountability 
                Act of 1996, and subtitle D of title IV of the 
                Health Information Technology for Economic and 
                Clinical Health Act; and
                    ``(B) regulations under such provisions.
    ``(b) Flexibility.--In administering the provisions of this 
title, the Secretary shall have flexibility in applying the 
definition of health care provider under section 3000(3), 
including the authority to omit certain entities listed in such 
definition when applying such definition under this title, 
where appropriate.''.

SEC. 13102. TECHNICAL AMENDMENT.

    Section 1171(5) of the Social Security Act (42 U.S.C. 
1320d) is amended by striking ``or C'' and inserting ``C, or 
D''.

 PART 2--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY 
                           STANDARDS; REPORTS

SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS 
                    AND IMPLEMENTATION SPECIFICATIONS.

    (a) Spending on Health Information Technology Systems.--As 
each agency (as defined by the Director of the Office of 
Management and Budget, in consultation with the Secretary of 
Health and Human Services) implements, acquires, or upgrades 
health information technology systems used for the direct 
exchange of individually identifiable health information 
between agencies and with non-Federal entities, it shall 
utilize, where available, health information technology systems 
and products that meet standards and implementation 
specifications adopted under section 3004 of the Public Health 
Service Act, as added by section 13101.
    (b) Federal Information Collection Activities.--With 
respect to a standard or implementation specification adopted 
under section 3004 of the Public Health Service Act, as added 
by section 13101, the President shall take measures to ensure 
that Federal activities involving the broad collection and 
submission of health information are consistent with such 
standard or implementation specification, respectively, within 
three years after the date of such adoption.
    (c) Application of Definitions.--The definitions contained 
in section 3000 of the Public Health Service Act, as added by 
section 13101, shall apply for purposes of this part.

SEC. 13112. APPLICATION TO PRIVATE ENTITIES.

    Each agency (as defined in such Executive Order issued on 
August 22, 2006, relating to promoting quality and efficient 
health care in Federal government administered or sponsored 
health care programs) shall require in contracts or agreements 
with health care providers, health plans, or health insurance 
issuers that as each provider, plan, or issuer implements, 
acquires, or upgrades health information technology systems, it 
shall utilize, where available, health information technology 
systems and products that meet standards and implementation 
specifications adopted under section 3004 of the Public Health 
Service Act, as added by section 13101.

SEC. 13113. STUDY AND REPORTS.

    (a) Report on Adoption of Nationwide System.--Not later 
than 2 years after the date of the enactment of this Act and 
annually thereafter, the Secretary of Health and Human Services 
shall submit to the appropriate committees of jurisdiction of 
the House of Representatives and the Senate a report that--
            (1) describes the specific actions that have been 
        taken by the Federal Government and private entities to 
        facilitate the adoption of a nationwide system for the 
        electronic use and exchange of health information;
            (2) describes barriers to the adoption of such a 
        nationwide system; and
            (3) contains recommendations to achieve full 
        implementation of such a nationwide system.
    (b) Reimbursement Incentive Study and Report.--
            (1) Study.--The Secretary of Health and Human 
        Services shall carry out, or contract with a private 
        entity to carry out, a study that examines methods to 
        create efficient reimbursement incentives for improving 
        health care quality in Federally qualified health 
        centers, rural health clinics, and free clinics.
            (2) Report.--Not later than 2 years after the date 
        of the enactment of this Act, the Secretary of Health 
        and Human Services shall submit to the appropriate 
        committees of jurisdiction of the House of 
        Representatives and the Senate a report on the study 
        carried out under paragraph (1).
    (c) Aging Services Technology Study and Report.--
            (1) In general.--The Secretary of Health and Human 
        Services shall carry out, or contract with a private 
        entity to carry out, a study of matters relating to the 
        potential use of new aging services technology to 
        assist seniors, individuals with disabilities, and 
        their caregivers throughout the aging process.
            (2) Matters to be studied.--The study under 
        paragraph (1) shall include--
                    (A) an evaluation of--
                            (i) methods for identifying 
                        current, emerging, and future health 
                        technology that can be used to meet the 
                        needs of seniors and individuals with 
                        disabilities and their caregivers 
                        across all aging services settings, as 
                        specified by the Secretary;
                            (ii) methods for fostering 
                        scientific innovation with respect to 
                        aging services technology within the 
                        business and academic communities; and
                            (iii) developments in aging 
                        services technology in other countries 
                        that may be applied in the United 
                        States; and
                    (B) identification of--
                            (i) barriers to innovation in aging 
                        services technology and devising 
                        strategies for removing such barriers; 
                        and
                            (ii) barriers to the adoption of 
                        aging services technology by health 
                        care providers and consumers and 
                        devising strategies to removing such 
                        barriers.
            (3) Report.--Not later than 24 months after the 
        date of the enactment of this Act, the Secretary shall 
        submit to the appropriate committees of jurisdiction of 
        the House of Representatives and of the Senate a report 
        on the study carried out under paragraph (1).
            (4) Definitions.--For purposes of this subsection:
                    (A) Aging services technology.--The term 
                ``aging services technology'' means health 
                technology that meets the health care needs of 
                seniors, individuals with disabilities, and the 
                caregivers of such seniors and individuals.
                    (B) Senior.--The term ``senior'' has such 
                meaning as specified by the Secretary.

          Subtitle B--Testing of Health Information Technology

SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY TESTING.

    (a) Pilot Testing of Standards and Implementation 
Specifications.--In coordination with the HIT Standards 
Committee established under section 3003 of the Public Health 
Service Act, as added by section 13101, with respect to the 
development of standards and implementation specifications 
under such section, the Director of the National Institute for 
Standards and Technology shall test such standards and 
implementation specifications, as appropriate, in order to 
assure the efficient implementation and use of such standards 
and implementation specifications.
    (b) Voluntary Testing Program.--In coordination with the 
HIT Standards Committee established under section 3003 of the 
Public Health Service Act, as added by section 13101, with 
respect to the development of standards and implementation 
specifications under such section, the Director of the National 
Institute of Standards and Technology shall support the 
establishment of a conformance testing infrastructure, 
including the development of technical test beds. The 
development of this conformance testing infrastructure may 
include a program to accredit independent, non-Federal 
laboratories to perform testing.

SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Health Care Information Enterprise Integration Research 
Centers.--
            (1) In general.--The Director of the National 
        Institute of Standards and Technology, in consultation 
        with the Director of the National Science Foundation 
        and other appropriate Federal agencies, shall establish 
        a program of assistance to institutions of higher 
        education (or consortia thereof which may include 
        nonprofit entities and Federal Government laboratories) 
        to establish multidisciplinary Centers for Health Care 
        Information Enterprise Integration.
            (2) Review; competition.--Grants shall be awarded 
        under this subsection on a merit-reviewed, competitive 
        basis.
            (3) Purpose.--The purposes of the Centers described 
        in paragraph (1) shall be--
                    (A) to generate innovative approaches to 
                health care information enterprise integration 
                by conducting cutting-edge, multidisciplinary 
                research on the systems challenges to health 
                care delivery; and
                    (B) the development and use of health 
                information technologies and other 
                complementary fields.
            (4) Research areas.--Research areas may include--
                    (A) interfaces between human information 
                and communications technology systems;
                    (B) voice-recognition systems;
                    (C) software that improves interoperability 
                and connectivity among health information 
                systems;
                    (D) software dependability in systems 
                critical to health care delivery;
                    (E) measurement of the impact of 
                information technologies on the quality and 
                productivity of health care;
                    (F) health information enterprise 
                management;
                    (G) health information technology security 
                and integrity; and
                    (H) relevant health information technology 
                to reduce medical errors.
            (5) Applications.--An institution of higher 
        education (or a consortium thereof) seeking funding 
        under this subsection shall submit an application to 
        the Director of the National Institute of Standards and 
        Technology at such time, in such manner, and containing 
        such information as the Director may require. The 
        application shall include, at a minimum, a description 
        of--
                    (A) the research projects that will be 
                undertaken by the Center established pursuant 
                to assistance under paragraph (1) and the 
                respective contributions of the participating 
                entities;
                    (B) how the Center will promote active 
                collaboration among scientists and engineers 
                from different disciplines, such as information 
                technology, biologic sciences, management, 
                social sciences, and other appropriate 
                disciplines;
                    (C) technology transfer activities to 
                demonstrate and diffuse the research results, 
                technologies, and knowledge; and
                    (D) how the Center will contribute to the 
                education and training of researchers and other 
                professionals in fields relevant to health 
                information enterprise integration.
    (b) National Information Technology Research and 
Development Program.--The National High-Performance Computing 
Program established by section 101 of the High-Performance 
Computing Act of 1991 (15 U.S.C. 5511) shall include Federal 
research and development programs related to health information 
technology.

                  Subtitle C--Grants and Loans Funding

SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

    Title XXX of the Public Health Service Act, as added by 
section 13101, is amended by adding at the end the following 
new subtitle:

 ``Subtitle B--Incentives for the Use of Health Information Technology

``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH INFORMATION 
                    TECHNOLOGY INFRASTRUCTURE.

    ``(a) In General.--The Secretary shall, using amounts 
appropriated under section 3018, invest in the infrastructure 
necessary to allow for and promote the electronic exchange and 
use of health information for each individual in the United 
States consistent with the goals outlined in the strategic plan 
developed by the National Coordinator (and as available) under 
section 3001. The Secretary shall invest funds through the 
different agencies with expertise in such goals, such as the 
Office of the National Coordinator for Health Information 
Technology, the Health Resources and Services Administration, 
the Agency for Healthcare Research and Quality, the Centers of 
Medicare & Medicaid Services, the Centers for Disease Control 
and Prevention, and the Indian Health Service to support the 
following:
            ``(1) Health information technology architecture 
        that will support the nationwide electronic exchange 
        and use of health information in a secure, private, and 
        accurate manner, including connecting health 
        information exchanges, and which may include updating 
        and implementing the infrastructure necessary within 
        different agencies of the Department of Health and 
        Human Services to support the electronic use and 
        exchange of health information.
            ``(2) Development and adoption of appropriate 
        certified electronic health records for categories of 
        health care providers not eligible for support under 
        title XVIII or XIX of the Social Security Act for the 
        adoption of such records.
            ``(3) Training on and dissemination of information 
        on best practices to integrate health information 
        technology, including electronic health records, into a 
        provider's delivery of care, consistent with best 
        practices learned from the Health Information 
        Technology Research Center developed under section 
        3012(b), including community health centers receiving 
        assistance under section 330, covered entities under 
        section 340B, and providers participating in one or 
        more of the programs under titles XVIII, XIX, and XXI 
        of the Social Security Act (relating to Medicare, 
        Medicaid, and the State Children's Health Insurance 
        Program).
            ``(4) Infrastructure and tools for the promotion of 
        telemedicine, including coordination among Federal 
        agencies in the promotion of telemedicine.
            ``(5) Promotion of the interoperability of clinical 
        data repositories or registries.
            ``(6) Promotion of technologies and best practices 
        that enhance the protection of health information by 
        all holders of individually identifiable health 
        information.
            ``(7) Improvement and expansion of the use of 
        health information technology by public health 
        departments.
    ``(b) Coordination.--The Secretary shall ensure funds under 
this section are used in a coordinated manner with other health 
information promotion activities.
    ``(c) Additional Use of Funds.--In addition to using funds 
as provided in subsection (a), the Secretary may use amounts 
appropriated under section 3018 to carry out health information 
technology activities that are provided for under laws in 
effect on the date of the enactment of this title.
    ``(d) Standards for Acquisition of Health Information 
Technology.--To the greatest extent practicable, the Secretary 
shall ensure that where funds are expended under this section 
for the acquisition of health information technology, such 
funds shall be used to acquire health information technology 
that meets applicable standards adopted under section 3004. 
Where it is not practicable to expend funds on health 
information technology that meets such applicable standards, 
the Secretary shall ensure that such health information 
technology meets applicable standards otherwise adopted by the 
Secretary.

``SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION ASSISTANCE.

    ``(a) Health Information Technology Extension Program.--To 
assist health care providers to adopt, implement, and 
effectively use certified EHR technology that allows for the 
electronic exchange and use of health information, the 
Secretary, acting through the Office of the National 
Coordinator, shall establish a health information technology 
extension program to provide health information technology 
assistance services to be carried out through the Department of 
Health and Human Services. The National Coordinator shall 
consult with other Federal agencies with demonstrated 
experience and expertise in information technology services, 
such as the National Institute of Standards and Technology, in 
developing and implementing this program.
    ``(b) Health Information Technology Research Center.--
            ``(1) In general.--The Secretary shall create a 
        Health Information Technology Research Center (in this 
        section referred to as the `Center') to provide 
        technical assistance and develop or recognize best 
        practices to support and accelerate efforts to adopt, 
        implement, and effectively utilize health information 
        technology that allows for the electronic exchange and 
        use of information in compliance with standards, 
        implementation specifications, and certification 
        criteria adopted under section 3004.
            ``(2) Input.--The Center shall incorporate input 
        from--
                    ``(A) other Federal agencies with 
                demonstrated experience and expertise in 
                information technology services such as the 
                National Institute of Standards and Technology;
                    ``(B) users of health information 
                technology, such as providers and their support 
                and clerical staff and others involved in the 
                care and care coordination of patients, from 
                the health care and health information 
                technology industry; and
                    ``(C) others as appropriate.
            ``(3) Purposes.--The purposes of the Center are 
        to--
                    ``(A) provide a forum for the exchange of 
                knowledge and experience;
                    ``(B) accelerate the transfer of lessons 
                learned from existing public and private sector 
                initiatives, including those currently 
                receiving Federal financial support;
                    ``(C) assemble, analyze, and widely 
                disseminate evidence and experience related to 
                the adoption, implementation, and effective use 
                of health information technology that allows 
                for the electronic exchange and use of 
                information including through the regional 
                centers described in subsection (c);
                    ``(D) provide technical assistance for the 
                establishment and evaluation of regional and 
                local health information networks to facilitate 
                the electronic exchange of information across 
                health care settings and improve the quality of 
                health care;
                    ``(E) provide technical assistance for the 
                development and dissemination of solutions to 
                barriers to the exchange of electronic health 
                information; and
                    ``(F) learn about effective strategies to 
                adopt and utilize health information technology 
                in medically underserved communities.
    ``(c) Health Information Technology Regional Extension 
Centers.--
            ``(1) In general.--The Secretary shall provide 
        assistance for the creation and support of regional 
        centers (in this subsection referred to as `regional 
        centers') to provide technical assistance and 
        disseminate best practices and other information 
        learned from the Center to support and accelerate 
        efforts to adopt, implement, and effectively utilize 
        health information technology that allows for the 
        electronic exchange and use of information in 
        compliance with standards, implementation 
        specifications, and certification criteria adopted 
        under section 3004. Activities conducted under this 
        subsection shall be consistent with the strategic plan 
        developed by the National Coordinator, (and, as 
        available) under section 3001.
            ``(2) Affiliation.--Regional centers shall be 
        affiliated with any United States-based nonprofit 
        institution or organization, or group thereof, that 
        applies and is awarded financial assistance under this 
        section. Individual awards shall be decided on the 
        basis of merit.
            ``(3) Objective.--The objective of the regional 
        centers is to enhance and promote the adoption of 
        health information technology through--
                    ``(A) assistance with the implementation, 
                effective use, upgrading, and ongoing 
                maintenance of health information technology, 
                including electronic health records, to 
                healthcare providers nationwide;
                    ``(B) broad participation of individuals 
                from industry, universities, and State 
                governments;
                    ``(C) active dissemination of best 
                practices and research on the implementation, 
                effective use, upgrading, and ongoing 
                maintenance of health information technology, 
                including electronic health records, to health 
                care providers in order to improve the quality 
                of healthcare and protect the privacy and 
                security of health information;
                    ``(D) participation, to the extent 
                practicable, in health information exchanges;
                    ``(E) utilization, when appropriate, of the 
                expertise and capability that exists in Federal 
                agencies other than the Department; and
                    ``(F) integration of health information 
                technology, including electronic health 
                records, into the initial and ongoing training 
                of health professionals and others in the 
                healthcare industry that would be instrumental 
                to improving the quality of healthcare through 
                the smooth and accurate electronic use and 
                exchange of health information.
            ``(4) Regional assistance.--Each regional center 
        shall aim to provide assistance and education to all 
        providers in a region, but shall prioritize any direct 
        assistance first to the following:
                    ``(A) Public or not-for-profit hospitals or 
                critical access hospitals.
                    ``(B) Federally qualified health centers 
                (as defined in section 1861(aa)(4) of the 
                Social Security Act).
                    ``(C) Entities that are located in rural 
                and other areas that serve uninsured, 
                underinsured, and medically underserved 
                individuals (regardless of whether such area is 
                urban or rural).
                    ``(D) Individual or small group practices 
                (or a consortium thereof) that are primarily 
                focused on primary care.
            ``(5) Financial support.--The Secretary may provide 
        financial support to any regional center created under 
        this subsection for a period not to exceed four years. 
        The Secretary may not provide more than 50 percent of 
        the capital and annual operating and maintenance funds 
        required to create and maintain such a center, except 
        in an instance of national economic conditions which 
        would render this cost-share requirement detrimental to 
        the program and upon notification to Congress as to the 
        justification to waive the cost-share requirement.
            ``(6) Notice of program description and 
        availability of funds.--The Secretary shall publish in 
        the Federal Register, not later than 90 days after the 
        date of the enactment of this title, a draft 
        description of the program for establishing regional 
        centers under this subsection. Such description shall 
        include the following:
                    ``(A) A detailed explanation of the program 
                and the programs goals.
                    ``(B) Procedures to be followed by the 
                applicants.
                    ``(C) Criteria for determining qualified 
                applicants.
                    ``(D) Maximum support levels expected to be 
                available to centers under the program.
            ``(7) Application review.--The Secretary shall 
        subject each application under this subsection to merit 
        review. In making a decision whether to approve such 
        application and provide financial support, the 
        Secretary shall consider at a minimum the merits of the 
        application, including those portions of the 
        application regarding--
                    ``(A) the ability of the applicant to 
                provide assistance under this subsection and 
                utilization of health information technology 
                appropriate to the needs of particular 
                categories of health care providers;
                    ``(B) the types of service to be provided 
                to health care providers;
                    ``(C) geographical diversity and extent of 
                service area; and
                    ``(D) the percentage of funding and amount 
                of in-kind commitment from other sources.
            ``(8) Biennial evaluation.--Each regional center 
        which receives financial assistance under this 
        subsection shall be evaluated biennially by an 
        evaluation panel appointed by the Secretary. Each 
        evaluation panel shall be composed of private experts, 
        none of whom shall be connected with the center 
        involved, and of Federal officials. Each evaluation 
        panel shall measure the involved center's performance 
        against the objective specified in paragraph (3). The 
        Secretary shall not continue to provide funding to a 
        regional center unless its evaluation is overall 
        positive.
            ``(9) Continuing support.--After the second year of 
        assistance under this subsection, a regional center may 
        receive additional support under this subsection if it 
        has received positive evaluations and a finding by the 
        Secretary that continuation of Federal funding to the 
        center was in the best interest of provision of health 
        information technology extension services.

``SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION TECHNOLOGY.

    ``(a) In General.--The Secretary, acting through the 
National Coordinator, shall establish a program in accordance 
with this section to facilitate and expand the electronic 
movement and use of health information among organizations 
according to nationally recognized standards.
    ``(b) Planning Grants.--The Secretary may award a grant to 
a State or qualified State-designated entity (as described in 
subsection (f)) that submits an application to the Secretary at 
such time, in such manner, and containing such information as 
the Secretary may specify, for the purpose of planning 
activities described in subsection (d).
    ``(c) Implementation Grants.--The Secretary may award a 
grant to a State or qualified State designated entity that--
            ``(1) has submitted, and the Secretary has 
        approved, a plan described in subsection (e) 
        (regardless of whether such plan was prepared using 
        amounts awarded under subsection (b); and
            ``(2) submits an application at such time, in such 
        manner, and containing such information as the 
        Secretary may specify.
    ``(d) Use of Funds.--Amounts received under a grant under 
subsection (c) shall be used to conduct activities to 
facilitate and expand the electronic movement and use of health 
information among organizations according to nationally 
recognized standards through activities that include--
            ``(1) enhancing broad and varied participation in 
        the authorized and secure nationwide electronic use and 
        exchange of health information;
            ``(2) identifying State or local resources 
        available towards a nationwide effort to promote health 
        information technology;
            ``(3) complementing other Federal grants, programs, 
        and efforts towards the promotion of health information 
        technology;
            ``(4) providing technical assistance for the 
        development and dissemination of solutions to barriers 
        to the exchange of electronic health information;
            ``(5) promoting effective strategies to adopt and 
        utilize health information technology in medically 
        underserved communities;
            ``(6) assisting patients in utilizing health 
        information technology;
            ``(7) encouraging clinicians to work with Health 
        Information Technology Regional Extension Centers as 
        described in section 3012, to the extent they are 
        available and valuable;
            ``(8) supporting public health agencies' authorized 
        use of and access to electronic health information;
            ``(9) promoting the use of electronic health 
        records for quality improvement including through 
        quality measures reporting; and
            ``(10) such other activities as the Secretary may 
        specify.
    ``(e) Plan.--
            ``(1) In general.--A plan described in this 
        subsection is a plan that describes the activities to 
        be carried out by a State or by the qualified State-
        designated entity within such State to facilitate and 
        expand the electronic movement and use of health 
        information among organizations according to nationally 
        recognized standards and implementation specifications.
            ``(2) Required elements.--A plan described in 
        paragraph (1) shall--
                    ``(A) be pursued in the public interest;
                    ``(B) be consistent with the strategic plan 
                developed by the National Coordinator (and, as 
                available) under section 3001;
                    ``(C) include a description of the ways the 
                State or qualified State-designated entity will 
                carry out the activities described in 
                subsection (b); and
                    ``(D) contain such elements as the 
                Secretary may require.
    ``(f) Qualified State-Designated Entity.--For purposes of 
this section, to be a qualified State-designated entity, with 
respect to a State, an entity shall--
            ``(1) be designated by the State as eligible to 
        receive awards under this section;
            ``(2) be a not-for-profit entity with broad 
        stakeholder representation on its governing board;
            ``(3) demonstrate that one of its principal goals 
        is to use information technology to improve health care 
        quality and efficiency through the authorized and 
        secure electronic exchange and use of health 
        information;
            ``(4) adopt nondiscrimination and conflict of 
        interest policies that demonstrate a commitment to 
        open, fair, and nondiscriminatory participation by 
        stakeholders; and
            ``(5) conform to such other requirements as the 
        Secretary may establish.
    ``(g) Required Consultation.--In carrying out activities 
described in subsections (b) and (c), a State or qualified 
State-designated entity shall consult with and consider the 
recommendations of--
            ``(1) health care providers (including providers 
        that provide services to low income and underserved 
        populations);
            ``(2) health plans;
            ``(3) patient or consumer organizations that 
        represent the population to be served;
            ``(4) health information technology vendors;
            ``(5) health care purchasers and employers;
            ``(6) public health agencies;
            ``(7) health professions schools, universities and 
        colleges;
            ``(8) clinical researchers;
            ``(9) other users of health information technology 
        such as the support and clerical staff of providers and 
        others involved in the care and care coordination of 
        patients; and
            ``(10) such other entities, as may be determined 
        appropriate by the Secretary.
    ``(h) Continuous Improvement.--The Secretary shall annually 
evaluate the activities conducted under this section and shall, 
in awarding grants under this section, implement the lessons 
learned from such evaluation in a manner so that awards made 
subsequent to each such evaluation are made in a manner that, 
in the determination of the Secretary, will lead towards the 
greatest improvement in quality of care, decrease in costs, and 
the most effective authorized and secure electronic exchange of 
health information.
    ``(i) Required Match.--
            ``(1) In general.--For a fiscal year (beginning 
        with fiscal year 2011), the Secretary may not make a 
        grant under this section to a State unless the State 
        agrees to make available non-Federal contributions 
        (which may include in-kind contributions) toward the 
        costs of a grant awarded under subsection (c) in an 
        amount equal to--
                    ``(A) for fiscal year 2011, not less than 
                $1 for each $10 of Federal funds provided under 
                the grant;
                    ``(B) for fiscal year 2012, not less than 
                $1 for each $7 of Federal funds provided under 
                the grant; and
                    ``(C) for fiscal year 2013 and each 
                subsequent fiscal year, not less than $1 for 
                each $3 of Federal funds provided under the 
                grant.
            ``(2) Authority to require state match for fiscal 
        years before fiscal year 2011.--For any fiscal year 
        during the grant program under this section before 
        fiscal year 2011, the Secretary may determine the 
        extent to which there shall be required a non-Federal 
        contribution from a State receiving a grant under this 
        section.

``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES FOR THE 
                    DEVELOPMENT OF LOAN PROGRAMS TO FACILITATE THE 
                    WIDESPREAD ADOPTION OF CERTIFIED EHR TECHNOLOGY.

    ``(a) In General.--The National Coordinator may award 
competitive grants to eligible entities for the establishment 
of programs for loans to health care providers to conduct the 
activities described in subsection (e).
    ``(b) Eligible Entity Defined.--For purposes of this 
subsection, the term `eligible entity' means a State or Indian 
tribe (as defined in the Indian Self-Determination and 
Education Assistance Act) that--
            ``(1) submits to the National Coordinator an 
        application at such time, in such manner, and 
        containing such information as the National Coordinator 
        may require;
            ``(2) submits to the National Coordinator a 
        strategic plan in accordance with subsection (d) and 
        provides to the National Coordinator assurances that 
        the entity will update such plan annually in accordance 
        with such subsection;
            ``(3) provides assurances to the National 
        Coordinator that the entity will establish a Loan Fund 
        in accordance with subsection (c);
            ``(4) provides assurances to the National 
        Coordinator that the entity will not provide a loan 
        from the Loan Fund to a health care provider unless the 
        provider agrees to--
                    ``(A) submit reports on quality measures 
                adopted by the Federal Government (by not later 
                than 90 days after the date on which such 
                measures are adopted), to--
                            ``(i) the Administrator of the 
                        Centers for Medicare & Medicaid 
                        Services (or his or her designee), in 
                        the case of an entity participating in 
                        the Medicare program under title XVIII 
                        of the Social Security Act or the 
                        Medicaid program under title XIX of 
                        such Act; or
                            ``(ii) the Secretary in the case of 
                        other entities;
                    ``(B) demonstrate to the satisfaction of 
                the Secretary (through criteria established by 
                the Secretary) that any certified EHR 
                technology purchased, improved, or otherwise 
                financially supported under a loan under this 
                section is used to exchange health information 
                in a manner that, in accordance with law and 
                standards (as adopted under section 3004) 
                applicable to the exchange of information, 
                improves the quality of health care, such as 
                promoting care coordination;
                    ``(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; 
                and
                    ``(E) include a plan on how the health care 
                providers involved intend to maintain and 
                support the certified EHR technology that would 
                be purchased with such loan, including the type 
                of resources expected to be involved and any 
                such other information as the State or Indian 
                Tribe, respectively, may require; and
            ``(5) agrees to provide matching funds in 
        accordance with subsection (h).
    ``(c) Establishment of Fund.--For purposes of subsection 
(b)(3), an eligible entity shall establish a certified EHR 
technology loan fund (referred to in this subsection as a `Loan 
Fund') and comply with the other requirements contained in this 
section. A grant to an eligible entity under this section shall 
be deposited in the Loan Fund established by the eligible 
entity. No funds authorized by other provisions of this title 
to be used for other purposes specified in this title shall be 
deposited in any Loan Fund.
    ``(d) Strategic Plan.--
            ``(1) In general.--For purposes of subsection 
        (b)(2), a strategic plan of an eligible entity under 
        this subsection shall identify the intended uses of 
        amounts available to the Loan Fund of such entity.
            ``(2) Contents.--A strategic plan under paragraph 
        (1), with respect to a Loan Fund of an eligible entity, 
        shall include for a year the following:
                    ``(A) A list of the projects to be assisted 
                through the Loan Fund during such year.
                    ``(B) A description of the criteria and 
                methods established for the distribution of 
                funds from the Loan Fund during the year.
                    ``(C) A description of the financial status 
                of the Loan Fund as of the date of submission 
                of the plan.
                    ``(D) The short-term and long-term goals of 
                the Loan Fund.
    ``(e) Use of Funds.--Amounts deposited in a Loan Fund, 
including loan repayments and interest earned on such amounts, 
shall be used only for awarding loans or loan guarantees, 
making reimbursements described in subsection (g)(4)(A), or as 
a source of reserve and security for leveraged loans, the 
proceeds of which are deposited in the Loan Fund established 
under subsection (c). Loans under this section may be used by a 
health care provider to--
            ``(1) facilitate the purchase of certified EHR 
        technology;
            ``(2) enhance the utilization of certified EHR 
        technology (which may include costs associated with 
        upgrading health information technology so that it 
        meets criteria necessary to be a certified EHR 
        technology);
            ``(3) train personnel in the use of such 
        technology; or
            ``(4) improve the secure electronic exchange of 
        health information.
    ``(f) Types of Assistance.--Except as otherwise limited by 
applicable State law, amounts deposited into a Loan Fund under 
this section may only be used for the following:
            ``(1) To award loans that comply with the 
        following:
                    ``(A) The interest rate for each loan shall 
                not exceed the market interest rate.
                    ``(B) The principal and interest payments 
                on each loan shall commence not later than 1 
                year after the date the loan was awarded, and 
                each loan shall be fully amortized not later 
                than 10 years after the date of the loan.
                    ``(C) The Loan Fund shall be credited with 
                all payments of principal and interest on each 
                loan awarded from the Loan Fund.
            ``(2) To guarantee, or purchase insurance for, a 
        local obligation (all of the proceeds of which finance 
        a project eligible for assistance under this 
        subsection) if the guarantee or purchase would improve 
        credit market access or reduce the interest rate 
        applicable to the obligation involved.
            ``(3) As a source of revenue or security for the 
        payment of principal and interest on revenue or general 
        obligation bonds issued by the eligible entity if the 
        proceeds of the sale of the bonds will be deposited 
        into the Loan Fund.
            ``(4) To earn interest on the amounts deposited 
        into the Loan Fund.
            ``(5) To make reimbursements described in 
        subsection (g)(4)(A).
    ``(g) Administration of Loan Funds.--
            ``(1) Combined financial administration.--An 
        eligible entity may (as a convenience and to avoid 
        unnecessary administrative costs) combine, in 
        accordance with applicable State law, the financial 
        administration of a Loan Fund established under this 
        subsection with the financial administration of any 
        other revolving fund established by the entity if 
        otherwise not prohibited by the law under which the 
        Loan Fund was established.
            ``(2) Cost of administering fund.--Each eligible 
        entity may annually use not to exceed 4 percent of the 
        funds provided to the entity under a grant under this 
        section to pay the reasonable costs of the 
        administration of the programs under this section, 
        including the recovery of reasonable costs expended to 
        establish a Loan Fund which are incurred after the date 
        of the enactment of this title.
            ``(3) Guidance and regulations.--The National 
        Coordinator shall publish guidance and promulgate 
        regulations as may be necessary to carry out the 
        provisions of this section, including--
                    ``(A) provisions to ensure that each 
                eligible entity commits and expends funds 
                allotted to the entity under this section as 
                efficiently as possible in accordance with this 
                title and applicable State laws; and
                    ``(B) guidance to prevent waste, fraud, and 
                abuse.
            ``(4) Private sector contributions.--
                    ``(A) In general.--A Loan Fund established 
                under this section may accept contributions 
                from private sector entities, except that such 
                entities may not specify the recipient or 
                recipients of any loan issued under this 
                subsection. An eligible entity may agree to 
                reimburse a private sector entity for any 
                contribution made under this subparagraph, 
                except that the amount of such reimbursement 
                may not be greater than the principal amount of 
                the contribution made.
                    ``(B) Availability of information.--An 
                eligible entity shall make publicly available 
                the identity of, and amount contributed by, any 
                private sector entity under subparagraph (A) 
                and may issue letters of commendation or make 
                other awards (that have no financial value) to 
                any such entity.
    ``(h) Matching Requirements.--
            ``(1) In general.--The National Coordinator may not 
        make a grant under subsection (a) to an eligible entity 
        unless the entity agrees to make available (directly or 
        through donations from public or private entities) non-
        Federal contributions in cash to the costs of carrying 
        out the activities for which the grant is awarded in an 
        amount equal to not less than $1 for each $5 of Federal 
        funds provided under the grant.
            ``(2) Determination of amount of non-federal 
        contribution.--In determining the amount of non-Federal 
        contributions that an eligible entity has provided 
        pursuant to subparagraph (A), the National Coordinator 
        may not include any amounts provided to the entity by 
        the Federal Government.
    ``(i) Effective Date.--The Secretary may not make an award 
under this section prior to January 1, 2010.

``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION TECHNOLOGY 
                    INTO CLINICAL EDUCATION.

    ``(a) In General.--The Secretary may award grants under 
this section to carry out demonstration projects to develop 
academic curricula integrating certified EHR technology in the 
clinical education of health professionals. Such awards shall 
be made on a competitive basis and pursuant to peer review.
    ``(b) Eligibility.--To be eligible to receive a grant under 
subsection (a), an entity shall--
            ``(1) submit to the Secretary an application at 
        such time, in such manner, and containing such 
        information as the Secretary may require;
            ``(2) submit to the Secretary a strategic plan for 
        integrating certified EHR technology in the clinical 
        education of health professionals to reduce medical 
        errors, increase access to prevention, reduce chronic 
        diseases, and enhance health care quality;
            ``(3) be--
                    ``(A) a school of medicine, osteopathic 
                medicine, dentistry, or pharmacy, a graduate 
                program in behavioral or mental health, or any 
                other graduate health professions school;
                    ``(B) a graduate school of nursing or 
                physician assistant studies;
                    ``(C) a consortium of two or more schools 
                described in subparagraph (A) or (B); or
                    ``(D) an institution with a graduate 
                medical education program in medicine, 
                osteopathic medicine, dentistry, pharmacy, 
                nursing, or physician assistance studies;
            ``(4) provide for the collection of data regarding 
        the effectiveness of the demonstration project to be 
        funded under the grant in improving the safety of 
        patients, the efficiency of health care delivery, and 
        in increasing the likelihood that graduates of the 
        grantee will adopt and incorporate certified EHR 
        technology, in the delivery of health care services; 
        and
            ``(5) provide matching funds in accordance with 
        subsection (d).
    ``(c) Use of Funds.--
            ``(1) In general.--With respect to a grant under 
        subsection (a), an eligible entity shall--
                    ``(A) use grant funds in collaboration with 
                2 or more disciplines; and
                    ``(B) use grant funds to integrate 
                certified EHR technology into community-based 
                clinical education.
            ``(2) Limitation.--An eligible entity shall not use 
        amounts received under a grant under subsection (a) to 
        purchase hardware, software, or services.
    ``(d) Financial Support.--The Secretary may not provide 
more than 50 percent of the costs of any activity for which 
assistance is provided under subsection (a), except in an 
instance of national economic conditions which would render the 
cost-share requirement under this subsection detrimental to the 
program and upon notification to Congress as to the 
justification to waive the cost-share requirement.
    ``(e) Evaluation.--The Secretary shall take such action as 
may be necessary to evaluate the projects funded under this 
section and publish, make available, and disseminate the 
results of such evaluations on as wide a basis as is 
practicable.
    ``(f) Reports.--Not later than 1 year after the date of 
enactment of this title, and annually thereafter, the Secretary 
shall submit to the Committee on Health, Education, Labor, and 
Pensions and the Committee on Finance of the Senate, and the 
Committee on Energy and Commerce of the House of 
Representatives a report that--
            ``(1) describes the specific projects established 
        under this section; and
            ``(2) contains recommendations for Congress based 
        on the evaluation conducted under subsection (e).

``SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS IN HEALTH CARE.

    ``(a) In General.--The Secretary, in consultation with the 
Director of the National Science Foundation, shall provide 
assistance to institutions of higher education (or consortia 
thereof) to establish or expand medical health informatics 
education programs, including certification, undergraduate, and 
masters degree programs, for both health care and information 
technology students to ensure the rapid and effective 
utilization and development of health information technologies 
(in the United States health care infrastructure).
    ``(b) Activities.--Activities for which assistance may be 
provided under subsection (a) may include the following:
            ``(1) Developing and revising curricula in medical 
        health informatics and related disciplines.
            ``(2) Recruiting and retaining students to the 
        program involved.
            ``(3) Acquiring equipment necessary for student 
        instruction in these programs, including the 
        installation of testbed networks for student use.
            ``(4) Establishing or enhancing bridge programs in 
        the health informatics fields between community 
        colleges and universities.
    ``(c) Priority.--In providing assistance under subsection 
(a), the Secretary shall give preference to the following:
            ``(1) Existing education and training programs.
            ``(2) Programs designed to be completed in less 
        than six months.

``SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

    ``(a) Reports.--The Secretary may require that an entity 
receiving assistance under this subtitle shall submit to the 
Secretary, not later than the date that is 1 year after the 
date of receipt of such assistance, a report that includes--
            ``(1) an analysis of the effectiveness of the 
        activities for which the entity receives such 
        assistance, as compared to the goals for such 
        activities; and
            ``(2) an analysis of the impact of the project on 
        health care quality and safety.
    ``(b) Requirement To Improve Quality of Care and Decrease 
in Costs.--The National Coordinator shall annually evaluate the 
activities conducted under this subtitle and shall, in awarding 
grants, implement the lessons learned from such evaluation in a 
manner so that awards made subsequent to each such evaluation 
are made in a manner that, in the determination of the National 
Coordinator, will result in the greatest improvement in the 
quality and efficiency of health care.

``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

    ``For the purposes of carrying out this subtitle, there is 
authorized to be appropriated such sums as may be necessary for 
each of the fiscal years 2009 through 2013.''.

                          Subtitle D--Privacy

SEC. 13400. DEFINITIONS.

    In this subtitle, except as specified otherwise:
            (1) Breach.--
                    (A) In general.--The term ``breach'' means 
                the unauthorized acquisition, access, use, or 
                disclosure of protected health information 
                which compromises the security or privacy of 
                such information, except where an unauthorized 
                person to whom such information is disclosed 
                would not reasonably have been able to retain 
                such information.
                    (B) Exceptions.--The term ``breach'' does 
                not include--
                            (i) any unintentional acquisition, 
                        access, or use of protected health 
                        information by an employee or 
                        individual acting under the authority 
                        of a covered entity or business 
                        associate if--
                                    (I) such acquisition, 
                                access, or use was made in good 
                                faith and within the course and 
                                scope of the employment or 
                                other professional relationship 
                                of such employee or individual, 
                                respectively, with the covered 
                                entity or business associate; 
                                and
                                    (II) such information is 
                                not further acquired, accessed, 
                                used, or disclosed by any 
                                person; or
                            (ii) any inadvertent disclosure 
                        from an individual who is otherwise 
                        authorized to access protected health 
                        information at a facility operated by a 
                        covered entity or business associate to 
                        another similarly situated individual 
                        at same facility; and
                            (iii) any such information received 
                        as a result of such disclosure is not 
                        further acquired, accessed, used, or 
                        disclosed without authorization by any 
                        person.
            (2) Business associate.--The term ``business 
        associate'' has the meaning given such term in section 
        160.103 of title 45, Code of Federal Regulations.
            (3) Covered entity.--The term ``covered entity'' 
        has the meaning given such term in section 160.103 of 
        title 45, Code of Federal Regulations.
            (4) Disclose.--The terms ``disclose'' and 
        ``disclosure'' have the meaning given the term 
        ``disclosure'' in section 160.103 of title 45, Code of 
        Federal Regulations.
            (5) Electronic health record.--The term 
        ``electronic health record'' means an electronic record 
        of health-related information on an individual that is 
        created, gathered, managed, and consulted by authorized 
        health care clinicians and staff.
            (6) Health care operations.--The term ``health care 
        operation'' has the meaning given such term in section 
        164.501 of title 45, Code of Federal Regulations.
            (7) Health care provider.--The term ``health care 
        provider'' has the meaning given such term in section 
        160.103 of title 45, Code of Federal Regulations.
            (8) Health plan.--The term ``health plan'' has the 
        meaning given such term in section 160.103 of title 45, 
        Code of Federal Regulations.
            (9) National coordinator.--The term ``National 
        Coordinator'' means the head of the Office of the 
        National Coordinator for Health Information Technology 
        established under section 3001(a) of the Public Health 
        Service Act, as added by section 13101.
            (10) Payment.--The term ``payment'' has the meaning 
        given such term in section 164.501 of title 45, Code of 
        Federal Regulations.
            (11) Personal health record.--The term ``personal 
        health record'' means an electronic record of PHR 
        identifiable health information (as defined in section 
        13407(f)(2)) on an individual that can be drawn from 
        multiple sources and that is managed, shared, and 
        controlled by or primarily for the individual.
            (12) Protected health information.--The term 
        ``protected health information'' has the meaning given 
        such term in section 160.103 of title 45, Code of 
        Federal Regulations.
            (13) Secretary.--The term ``Secretary'' means the 
        Secretary of Health and Human Services.
            (14) Security.--The term ``security'' has the 
        meaning given such term in section 164.304 of title 45, 
        Code of Federal Regulations.
            (15) State.--The term ``State'' means each of the 
        several States, the District of Columbia, Puerto Rico, 
        the Virgin Islands, Guam, American Samoa, and the 
        Northern Mariana Islands.
            (16) Treatment.--The term ``treatment'' has the 
        meaning given such term in section 164.501 of title 45, 
        Code of Federal Regulations.
            (17) Use.--The term ``use'' has the meaning given 
        such term in section 160.103 of title 45, Code of 
        Federal Regulations.
            (18) Vendor of personal health records.--The term 
        ``vendor of personal health records'' means an entity, 
        other than a covered entity (as defined in paragraph 
        (3)), that offers or maintains a personal health 
        record.

      PART 1--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO 
                    BUSINESS ASSOCIATES OF COVERED ENTITIES; ANNUAL 
                    GUIDANCE ON SECURITY PROVISIONS.

    (a) Application of Security Provisions.--Sections 164.308, 
164.310, 164.312, and 164.316 of title 45, Code of Federal 
Regulations, shall apply to a business associate of a covered 
entity in the same manner that such sections apply to the 
covered entity. The additional requirements of this title that 
relate to security and that are made applicable with respect to 
covered entities shall also be applicable to such a business 
associate and shall be incorporated into the business associate 
agreement between the business associate and the covered 
entity.
    (b) Application of Civil and Criminal Penalties.--In the 
case of a business associate that violates any security 
provision specified in subsection (a), sections 1176 and 1177 
of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6) shall 
apply to the business associate with respect to such violation 
in the same manner such sections apply to a covered entity that 
violates such security provision.
    (c) Annual Guidance.--For the first year beginning after 
the date of the enactment of this Act and annually thereafter, 
the Secretary of Health and Human Services shall, after 
consultation with stakeholders, annually issue guidance on the 
most effective and appropriate technical safeguards for use in 
carrying out the sections referred to in subsection (a) and the 
security standards in subpart C of part 164 of title 45, Code 
of Federal Regulations, including the use of standards 
developed under section 3002(b)(2)(B)(vi) of the Public Health 
Service Act, as added by section 13101 of this Act, as such 
provisions are in effect as of the date before the enactment of 
this Act.

SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.

    (a) In General.--A covered entity that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise 
holds, uses, or discloses unsecured protected health 
information (as defined in subsection (h)(1)) shall, in the 
case of a breach of such information that is discovered by the 
covered entity, notify each individual whose unsecured 
protected health information has been, or is reasonably 
believed by the covered entity to have been, accessed, 
acquired, or disclosed as a result of such breach.
    (b) Notification of Covered Entity by Business Associate.--
A business associate of a covered entity that accesses, 
maintains, retains, modifies, records, stores, destroys, or 
otherwise holds, uses, or discloses unsecured protected health 
information shall, following the discovery of a breach of such 
information, notify the covered entity of such breach. Such 
notice shall include the identification of each individual 
whose unsecured protected health information has been, or is 
reasonably believed by the business associate to have been, 
accessed, acquired, or disclosed during such breach.
    (c) Breaches Treated as Discovered.--For purposes of this 
section, a breach shall be treated as discovered by a covered 
entity or by a business associate as of the first day on which 
such breach is known to such entity or associate, respectively, 
(including any person, other than the individual committing the 
breach, that is an employee, officer, or other agent of such 
entity or associate, respectively) or should reasonably have 
been known to such entity or associate (or person) to have 
occurred.
    (d) Timeliness of Notification.--
            (1) In general.--Subject to subsection (g), all 
        notifications required under this section shall be made 
        without unreasonable delay and in no case later than 60 
        calendar days after the discovery of a breach by the 
        covered entity involved (or business associate involved 
        in the case of a notification required under subsection 
        (b)).
            (2) Burden of proof.--The covered entity involved 
        (or business associate involved in the case of a 
        notification required under subsection (b)), shall have 
        the burden of demonstrating that all notifications were 
        made as required under this part, including evidence 
        demonstrating the necessity of any delay.
    (e) Methods of Notice.--
            (1) Individual notice.--Notice required under this 
        section to be provided to an individual, with respect 
        to a breach, shall be provided promptly and in the 
        following form:
                    (A) Written notification by first-class 
                mail to the individual (or the next of kin of 
                the individual if the individual is deceased) 
                at the last known address of the individual or 
                the next of kin, respectively, or, if specified 
                as a preference by the individual, by 
                electronic mail. The notification may be 
                provided in one or more mailings as information 
                is available.
                    (B) In the case in which there is 
                insufficient, or out-of-date contact 
                information (including a phone number, email 
                address, or any other form of appropriate 
                communication) that precludes direct written 
                (or, if specified by the individual under 
                subparagraph (A), electronic) notification to 
                the individual, a substitute form of notice 
                shall be provided, including, in the case that 
                there are 10 or more individuals for which 
                there is insufficient or out-of-date contact 
                information, a conspicuous posting for a period 
                determined by the Secretary on the home page of 
                the Web site of the covered entity involved or 
                notice in major print or broadcast media, 
                including major media in geographic areas where 
                the individuals affected by the breach likely 
                reside. Such a notice in media or web posting 
                will include a toll-free phone number where an 
                individual can learn whether or not the 
                individual's unsecured protected health 
                information is possibly included in the breach.
                    (C) In any case deemed by the covered 
                entity involved to require urgency because of 
                possible imminent misuse of unsecured protected 
                health information, the covered entity, in 
                addition to notice provided under subparagraph 
                (A), may provide information to individuals by 
                telephone or other means, as appropriate.
            (2) Media notice.--Notice shall be provided to 
        prominent media outlets serving a State or 
        jurisdiction, following the discovery of a breach 
        described in subsection (a), if the unsecured protected 
        health information of more than 500 residents of such 
        State or jurisdiction is, or is reasonably believed to 
        have been, accessed, acquired, or disclosed during such 
        breach.
            (3) Notice to secretary.--Notice shall be provided 
        to the Secretary by covered entities of unsecured 
        protected health information that has been acquired or 
        disclosed in a breach. If the breach was with respect 
        to 500 or more individuals then such notice must be 
        provided immediately. If the breach was with respect to 
        less than 500 individuals, the covered entity may 
        maintain a log of any such breach occurring and 
        annually submit such a log to the Secretary documenting 
        such breaches occurring during the year involved.
            (4) Posting on hhs public website.--The Secretary 
        shall make available to the public on the Internet 
        website of the Department of Health and Human Services 
        a list that identifies each covered entity involved in 
        a breach described in subsection (a) in which the 
        unsecured protected health information of more than 500 
        individuals is acquired or disclosed.
    (f) Content of Notification.--Regardless of the method by 
which notice is provided to individuals under this section, 
notice of a breach shall include, to the extent possible, the 
following:
            (1) A brief description of what happened, including 
        the date of the breach and the date of the discovery of 
        the breach, if known.
            (2) A description of the types of unsecured 
        protected health information that were involved in the 
        breach (such as full name, Social Security number, date 
        of birth, home address, account number, or disability 
        code).
            (3) The steps individuals should take to protect 
        themselves from potential harm resulting from the 
        breach.
            (4) A brief description of what the covered entity 
        involved is doing to investigate the breach, to 
        mitigate losses, and to protect against any further 
        breaches.
            (5) Contact procedures for individuals to ask 
        questions or learn additional information, which shall 
        include a toll-free telephone number, an e-mail 
        address, Web site, or postal address.
    (g) Delay of Notification Authorized for Law Enforcement 
Purposes.--If a law enforcement official determines that a 
notification, notice, or posting required under this section 
would impede a criminal investigation or cause damage to 
national security, such notification, notice, or posting shall 
be delayed in the same manner as provided under section 
164.528(a)(2) of title 45, Code of Federal Regulations, in the 
case of a disclosure covered under such section.
    (h) Unsecured Protected Health Information.--
            (1) Definition.--
                    (A) In general.--Subject to subparagraph 
                (B), for purposes of this section, the term 
                ``unsecured protected health information'' 
                means protected health information that is not 
                secured through the use of a technology or 
                methodology specified by the Secretary in the 
                guidance issued under paragraph (2).
                    (B) Exception in case timely guidance not 
                issued.--In the case that the Secretary does 
                not issue guidance under paragraph (2) by the 
                date specified in such paragraph, for purposes 
                of this section, the term ``unsecured protected 
                health information'' shall mean protected 
                health information that is not secured by a 
                technology standard that renders protected 
                health information unusable, unreadable, or 
                indecipherable to unauthorized individuals and 
                is developed or endorsed by a standards 
                developing organization that is accredited by 
                the American National Standards Institute.
            (2) Guidance.--For purposes of paragraph (1) and 
        section 13407(f)(3), not later than the date that is 60 
        days after the date of the enactment of this Act, the 
        Secretary shall, after consultation with stakeholders, 
        issue (and annually update) guidance specifying the 
        technologies and methodologies that render protected 
        health information unusable, unreadable, or 
        indecipherable to unauthorized individuals, including 
        the use of standards developed under section 
        3002(b)(2)(B)(vi) of the Public Health Service Act, as 
        added by section 13101 of this Act.
    (i) Report to Congress on Breaches.--
            (1) In general.--Not later than 12 months after the 
        date of the enactment of this Act and annually 
        thereafter, the Secretary shall prepare and submit to 
        the Committee on Finance and the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the 
        Committee on Ways and Means and the Committee on Energy 
        and Commerce of the House of Representatives a report 
        containing the information described in paragraph (2) 
        regarding breaches for which notice was provided to the 
        Secretary under subsection (e)(3).
            (2) Information.--The information described in this 
        paragraph regarding breaches specified in paragraph (1) 
        shall include--
                    (A) the number and nature of such breaches; 
                and
                    (B) actions taken in response to such 
                breaches.
    (j) Regulations; Effective Date.--To carry out this 
section, the Secretary of Health and Human Services shall 
promulgate interim final regulations by not later than the date 
that is 180 days after the date of the enactment of this title. 
The provisions of this section shall apply to breaches that are 
discovered on or after the date that is 30 days after the date 
of publication of such interim final regulations.

SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.

    (a) Regional Office Privacy Advisors.--Not later than 6 
months after the date of the enactment of this Act, the 
Secretary shall designate an individual in each regional office 
of the Department of Health and Human Services to offer 
guidance and education to covered entities, business 
associates, and individuals on their rights and 
responsibilities related to Federal privacy and security 
requirements for protected health information.
    (b) Education Initiative on Uses of Health Information.--
Not later than 12 months after the date of the enactment of 
this Act, the Office for Civil Rights within the Department of 
Health and Human Services shall develop and maintain a multi-
faceted national education initiative to enhance public 
transparency regarding the uses of protected health 
information, including programs to educate individuals about 
the potential uses of their protected health information, the 
effects of such uses, and the rights of individuals with 
respect to such uses. Such programs shall be conducted in a 
variety of languages and present information in a clear and 
understandable manner.

SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO BUSINESS 
                    ASSOCIATES OF COVERED ENTITIES.

    (a) Application of Contract Requirements.--In the case of a 
business associate of a covered entity that obtains or creates 
protected health information pursuant to a written contract (or 
other written arrangement) described in section 164.502(e)(2) 
of title 45, Code of Federal Regulations, with such covered 
entity, the business associate may use and disclose such 
protected health information only if such use or disclosure, 
respectively, is in compliance with each applicable requirement 
of section 164.504(e) of such title. The additional 
requirements of this subtitle that relate to privacy and that 
are made applicable with respect to covered entities shall also 
be applicable to such a business associate and shall be 
incorporated into the business associate agreement between the 
business associate and the covered entity.
    (b) Application of Knowledge Elements Associated With 
Contracts.--Section 164.504(e)(1)(ii) of title 45, Code of 
Federal Regulations, shall apply to a business associate 
described in subsection (a), with respect to compliance with 
such subsection, in the same manner that such section applies 
to a covered entity, with respect to compliance with the 
standards in sections 164.502(e) and 164.504(e) of such title, 
except that in applying such section 164.504(e)(1)(ii) each 
reference to the business associate, with respect to a 
contract, shall be treated as a reference to the covered entity 
involved in such contract.
    (c) Application of Civil and Criminal Penalties.--In the 
case of a business associate that violates any provision of 
subsection (a) or (b), the provisions of sections 1176 and 1177 
of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6) shall 
apply to the business associate with respect to such violation 
in the same manner as such provisions apply to a person who 
violates a provision of part C of title XI of such Act.

SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH 
                    INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH 
                    INFORMATION DISCLOSURES; ACCESS TO CERTAIN 
                    INFORMATION IN ELECTRONIC FORMAT.

    (a) Requested Restrictions on Certain Disclosures of Health 
Information.--In the case that an individual requests under 
paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code of 
Federal Regulations, that a covered entity restrict the 
disclosure of the protected health information of the 
individual, notwithstanding paragraph (a)(1)(ii) of such 
section, the covered entity must comply with the requested 
restriction if--
            (1) except as otherwise required by law, the 
        disclosure is to a health plan for purposes of carrying 
        out payment or health care operations (and is not for 
        purposes of carrying out treatment); and
            (2) the protected health information pertains 
        solely to a health care item or service for which the 
        health care provider involved has been paid out of 
        pocket in full.
    (b) Disclosures Required To Be Limited to the Limited Data 
Set or the Minimum Necessary.--
            (1) In general.--
                    (A) In general.--Subject to subparagraph 
                (B), a covered entity shall be treated as being 
                in compliance with section 164.502(b)(1) of 
                title 45, Code of Federal Regulations, with 
                respect to the use, disclosure, or request of 
                protected health information described in such 
                section, only if the covered entity limits such 
                protected health information, to the extent 
                practicable, to the limited data set (as 
                defined in section 164.514(e)(2) of such title) 
                or, if needed by such entity, to the minimum 
                necessary to accomplish the intended purpose of 
                such use, disclosure, or request, respectively.
                    (B) Guidance.--Not later than 18 months 
                after the date of the enactment of this 
                section, the Secretary shall issue guidance on 
                what constitutes ``minimum necessary'' for 
                purposes of subpart E of part 164 of title 45, 
                Code of Federal Regulations. In issuing such 
                guidance the Secretary shall take into 
                consideration the guidance under section 
                13424(c) and the information necessary to 
                improve patient outcomes and to detect, 
                prevent, and manage chronic disease.
                    (C) Sunset.--Subparagraph (A) shall not 
                apply on and after the effective date on which 
                the Secretary issues the guidance under 
                subparagraph (B).
            (2) Determination of minimum necessary.--For 
        purposes of paragraph (1), in the case of the 
        disclosure of protected health information, the covered 
        entity or business associate disclosing such 
        information shall determine what constitutes the 
        minimum necessary to accomplish the intended purpose of 
        such disclosure.
            (3) Application of exceptions.--The exceptions 
        described in section 164.502(b)(2) of title 45, Code of 
        Federal Regulations, shall apply to the requirement 
        under paragraph (1) as of the effective date described 
        in section 13423 in the same manner that such 
        exceptions apply to section 164.502(b)(1) of such title 
        before such date.
            (4) Rule of construction.--Nothing in this 
        subsection shall be construed as affecting the use, 
        disclosure, or request of protected health information 
        that has been de-identified.
    (c) Accounting of Certain Protected Health Information 
Disclosures Required if Covered Entity Uses Electronic Health 
Record.--
            (1) In general.--In applying section 164.528 of 
        title 45, Code of Federal Regulations, in the case that 
        a covered entity uses or maintains an electronic health 
        record with respect to protected health information--
                    (A) the exception under paragraph (a)(1)(i) 
                of such section shall not apply to disclosures 
                through an electronic health record made by 
                such entity of such information; and
                    (B) an individual shall have a right to 
                receive an accounting of disclosures described 
                in such paragraph of such information made by 
                such covered entity during only the three years 
                prior to the date on which the accounting is 
                requested.
            (2) Regulations.--The Secretary shall promulgate 
        regulations on what information shall be collected 
        about each disclosure referred to in paragraph (1), not 
        later than 6 months after the date on which the 
        Secretary adopts standards on accounting for disclosure 
        described in the section 3002(b)(2)(B)(iv) of the 
        Public Health Service Act, as added by section 13101. 
        Such regulations shall only require such information to 
        be collected through an electronic health record in a 
        manner that takes into account the interests of the 
        individuals in learning the circumstances under which 
        their protected health information is being disclosed 
        and takes into account the administrative burden of 
        accounting for such disclosures.
            (3) Process.--In response to a request from an 
        individual for an accounting, a covered entity shall 
        elect to provide either an--
                    (A) accounting, as specified under 
                paragraph (1), for disclosures of protected 
                health information that are made by such 
                covered entity and by a business associate 
                acting on behalf of the covered entity; or
                    (B) accounting, as specified under 
                paragraph (1), for disclosures that are made by 
                such covered entity and provide a list of all 
                business associates acting on behalf of the 
                covered entity, including contact information 
                for such associates (such as mailing address, 
                phone, and email address).
        A business associate included on a list under 
        subparagraph (B) shall provide an accounting of 
        disclosures (as required under paragraph (1) for a 
        covered entity) made by the business associate upon a 
        request made by an individual directly to the business 
        associate for such an accounting.
            (4) Effective date.--
                    (A) Current users of electronic records.--
                In the case of a covered entity insofar as it 
                acquired an electronic health record as of 
                January 1, 2009, paragraph (1) shall apply to 
                disclosures, with respect to protected health 
                information, made by the covered entity from 
                such a record on and after January 1, 2014.
                    (B) Others.--In the case of a covered 
                entity insofar as it acquires an electronic 
                health record after January 1, 2009, paragraph 
                (1) shall apply to disclosures, with respect to 
                protected health information, made by the 
                covered entity from such record on and after 
                the later of the following:
                            (i) January 1, 2011; or
                            (ii) the date that it acquires an 
                        electronic health record.
                    (C) Later date.--The Secretary may set an 
                effective date that is later than the date 
                specified under subparagraph (A) or (B) if the 
                Secretary determines that such later date is 
                necessary, but in no case may the date 
                specified under--
                            (i) subparagraph (A) be later than 
                        2016; or
                            (ii) subparagraph (B) be later than 
                        2013.
    (d) Prohibition on Sale of Electronic Health Records or 
Protected Health Information.--
            (1) In general.--Except as provided in paragraph 
        (2), a covered entity or business associate shall not 
        directly or indirectly receive remuneration in exchange 
        for any protected health information of an individual 
        unless the covered entity obtained from the individual, 
        in accordance with section 164.508 of title 45, Code of 
        Federal Regulations, a valid authorization that 
        includes, in accordance with such section, a 
        specification of whether the protected health 
        information can be further exchanged for remuneration 
        by the entity receiving protected health information of 
        that individual.
            (2) Exceptions.--Paragraph (1) shall not apply in 
        the following cases:
                    (A) The purpose of the exchange is for 
                public health activities (as described in 
                section 164.512(b) of title 45, Code of Federal 
                Regulations).
                    (B) The purpose of the exchange is for 
                research (as described in sections 164.501 and 
                164.512(i) of title 45, Code of Federal 
                Regulations) and the price charged reflects the 
                costs of preparation and transmittal of the 
                data for such purpose.
                    (C) The purpose of the exchange is for the 
                treatment of the individual, subject to any 
                regulation that the Secretary may promulgate to 
                prevent protected health information from 
                inappropriate access, use, or disclosure.
                    (D) The purpose of the exchange is the 
                health care operation specifically described in 
                subparagraph (iv) of paragraph (6) of the 
                definition of healthcare operations in section 
                164.501 of title 45, Code of Federal 
                Regulations.
                    (E) The purpose of the exchange is for 
                remuneration that is provided by a covered 
                entity to a business associate for activities 
                involving the exchange of protected health 
                information that the business associate 
                undertakes on behalf of and at the specific 
                request of the covered entity pursuant to a 
                business associate agreement.
                    (F) The purpose of the exchange is to 
                provide an individual with a copy of the 
                individual's protected health information 
                pursuant to section 164.524 of title 45, Code 
                of Federal Regulations.
                    (G) The purpose of the exchange is 
                otherwise determined by the Secretary in 
                regulations to be similarly necessary and 
                appropriate as the exceptions provided in 
                subparagraphs (A) through (F).
            (3) Regulations.--Not later than 18 months after 
        the date of enactment of this title, the Secretary 
        shall promulgate regulations to carry out this 
        subsection. In promulgating such regulations, the 
        Secretary--
                    (A) shall evaluate the impact of 
                restricting the exception described in 
                paragraph (2)(A) to require that the price 
                charged for the purposes described in such 
                paragraph reflects the costs of the preparation 
                and transmittal of the data for such purpose, 
                on research or public health activities, 
                including those conducted by or for the use of 
                the Food and Drug Administration; and
                    (B) may further restrict the exception 
                described in paragraph (2)(A) to require that 
                the price charged for the purposes described in 
                such paragraph reflects the costs of the 
                preparation and transmittal of the data for 
                such purpose, if the Secretary finds that such 
                further restriction will not impede such 
                research or public health activities.
            (4) Effective date.--Paragraph (1) shall apply to 
        exchanges occurring on or after the date that is 6 
        months after the date of the promulgation of final 
        regulations implementing this subsection.
    (e) Access to Certain Information in Electronic Format.--In 
applying section 164.524 of title 45, Code of Federal 
Regulations, in the case that a covered entity uses or 
maintains an electronic health record with respect to protected 
health information of an individual--
            (1) the individual shall have a right to obtain 
        from such covered entity a copy of such information in 
        an electronic format and, if the individual chooses, to 
        direct the covered entity to transmit such copy 
        directly to an entity or person designated by the 
        individual, provided that any such choice is clear, 
        conspicuous, and specific; and
            (2) notwithstanding paragraph (c)(4) of such 
        section, any fee that the covered entity may impose for 
        providing such individual with a copy of such 
        information (or a summary or explanation of such 
        information) if such copy (or summary or explanation) 
        is in an electronic form shall not be greater than the 
        entity's labor costs in responding to the request for 
        the copy (or summary or explanation).

SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE 
                    OPERATIONS.

    (a) Marketing.--
            (1) In general.--A communication by a covered 
        entity or business associate that is about a product or 
        service and that encourages recipients of the 
        communication to purchase or use the product or service 
        shall not be considered a health care operation for 
        purposes of subpart E of part 164 of title 45, Code of 
        Federal Regulations, unless the communication is made 
        as described in subparagraph (i), (ii), or (iii) of 
        paragraph (1) of the definition of marketing in section 
        164.501 of such title.
            (2) Payment for certain communications.--A 
        communication by a covered entity or business associate 
        that is described in subparagraph (i), (ii), or (iii) 
        of paragraph (1) of the definition of marketing in 
        section 164.501 of title 45, Code of Federal 
        Regulations, shall not be considered a health care 
        operation for purposes of subpart E of part 164 of 
        title 45, Code of Federal Regulations, if the covered 
        entity receives or has received direct or indirect 
        payment in exchange for making such communication, 
        except where--
                    (A)(i) such communication describes only a 
                drug or biologic that is currently being 
                prescribed for the recipient of the 
                communication; and
                    (ii) any payment received by such covered 
                entity in exchange for making a communication 
                described in clause (i) is reasonable in 
                amount;
                    (B) each of the following conditions 
                apply--
                            (i) the communication is made by 
                        the covered entity; and
                            (ii) the covered entity making such 
                        communication obtains from the 
                        recipient of the communication, in 
                        accordance with section 164.508 of 
                        title 45, Code of Federal Regulations, 
                        a valid authorization (as described in 
                        subsection (b) of such section) with 
                        respect to such communication; or
                    (C) each of the following conditions 
                apply--
                            (i) the communication is made by a 
                        business associate on behalf of the 
                        covered entity; and
                            (ii) the communication is 
                        consistent with the written contract 
                        (or other written arrangement described 
                        in section 164.502(e)(2) of such title) 
                        between such business associate and 
                        covered entity.
            (3) Reasonable in amount defined.--For purposes of 
        paragraph (2), the term ``reasonable in amount'' shall 
        have the meaning given such term by the Secretary by 
        regulation.
            (4) Direct or indirect payment.--For purposes of 
        paragraph (2), the term ``direct or indirect payment'' 
        shall not include any payment for treatment (as defined 
        in section 164.501 of title 45, Code of Federal 
        Regulations) of an individual.
    (b) Opportunity To Opt Out of Fundraising.--The Secretary 
shall by rule provide that any written fundraising 
communication that is a healthcare operation as defined under 
section 164.501 of title 45, Code of Federal Regulations, 
shall, in a clear and conspicuous manner, provide an 
opportunity for the recipient of the communications to elect 
not to receive any further such communication. When an 
individual elects not to receive any further such 
communication, such election shall be treated as a revocation 
of authorization under section 164.508 of title 45, Code of 
Federal Regulations.
    (c) Effective Date.--This section shall apply to written 
communications occurring on or after the effective date 
specified under section 13423.

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

    (a) In General.--In accordance with subsection (c), each 
vendor of personal health records, following the discovery of a 
breach of security of unsecured PHR identifiable health 
information that is in a personal health record maintained or 
offered by such vendor, and each entity described in clause 
(ii), (iii), or (iv) of section 13424(b)(1)(A), following the 
discovery of a breach of security of such information that is 
obtained through a product or service provided by such entity, 
shall--
            (1) notify each individual who is a citizen or 
        resident of the United States whose unsecured PHR 
        identifiable health information was acquired by an 
        unauthorized person as a result of such a breach of 
        security; and
            (2) notify the Federal Trade Commission.
    (b) Notification by Third Party Service Providers.--A third 
party service provider that provides services to a vendor of 
personal health records or to an entity described in clause 
(ii), (iii), or (iv) of section 13424(b)(1)(A) in connection 
with the offering or maintenance of a personal health record or 
a related product or service and that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise 
holds, uses, or discloses unsecured PHR identifiable health 
information in such a record as a result of such services 
shall, following the discovery of a breach of security of such 
information, notify such vendor or entity, respectively, of 
such breach. Such notice shall include the identification of 
each individual whose unsecured PHR identifiable health 
information has been, or is reasonably believed to have been, 
accessed, acquired, or disclosed during such breach.
    (c) Application of Requirements for Timeliness, Method, and 
Content of Notifications.--Subsections (c), (d), (e), and (f) 
of section 13402 shall apply to a notification required under 
subsection (a) and a vendor of personal health records, an 
entity described in subsection (a) and a third party service 
provider described in subsection (b), with respect to a breach 
of security under subsection (a) of unsecured PHR identifiable 
health information in such records maintained or offered by 
such vendor, in a manner specified by the Federal Trade 
Commission.
    (d) Notification of the Secretary.--Upon receipt of a 
notification of a breach of security under subsection (a)(2), 
the Federal Trade Commission shall notify the Secretary of such 
breach.
    (e) Enforcement.--A violation of subsection (a) or (b) 
shall be treated as an unfair and deceptive act or practice in 
violation of a regulation under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding 
unfair or deceptive acts or practices.
    (f) Definitions.--For purposes of this section:
            (1) Breach of security.--The term ``breach of 
        security'' means, with respect to unsecured PHR 
        identifiable health information of an individual in a 
        personal health record, acquisition of such information 
        without the authorization of the individual.
            (2) PHR identifiable health information.--The term 
        ``PHR identifiable health information'' means 
        individually identifiable health information, as 
        defined in section 1171(6) of the Social Security Act 
        (42 U.S.C. 1320d(6)), and includes, with respect to an 
        individual, information--
                    (A) that is provided by or on behalf of the 
                individual; and
                    (B) that identifies the individual or with 
                respect to which there is a reasonable basis to 
                believe that the information can be used to 
                identify the individual.
            (3) Unsecured phr identifiable health 
        information.--
                    (A) In general.--Subject to subparagraph 
                (B), the term ``unsecured PHR identifiable 
                health information'' means PHR identifiable 
                health information that is not protected 
                through the use of a technology or methodology 
                specified by the Secretary in the guidance 
                issued under section 13402(h)(2).
                    (B) Exception in case timely guidance not 
                issued.--In the case that the Secretary does 
                not issue guidance under section 13402(h)(2) by 
                the date specified in such section, for 
                purposes of this section, the term ``unsecured 
                PHR identifiable health information'' shall 
                mean PHR identifiable health information that 
                is not secured by a technology standard that 
                renders protected health information unusable, 
                unreadable, or indecipherable to unauthorized 
                individuals and that is developed or endorsed 
                by a standards developing organization that is 
                accredited by the American National Standards 
                Institute.
    (g) Regulations; Effective Date; Sunset.--
            (1) Regulations; effective date.--To carry out this 
        section, the Federal Trade Commission shall promulgate 
        interim final regulations by not later than the date 
        that is 180 days after the date of the enactment of 
        this section. The provisions of this section shall 
        apply to breaches of security that are discovered on or 
        after the date that is 30 days after the date of 
        publication of such interim final regulations.
            (2) Sunset.--If Congress enacts new legislation 
        establishing requirements for notification in the case 
        of a breach of security, that apply to entities that 
        are not covered entities or business associates, the 
        provisions of this section shall not apply to breaches 
        of security discovered on or after the effective date 
        of regulations implementing such legislation.

SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.

    Each organization, with respect to a covered entity, that 
provides data transmission of protected health information to 
such entity (or its business associate) and that requires 
access on a routine basis to such protected health information, 
such as a Health Information Exchange Organization, Regional 
Health Information Organization, E-prescribing Gateway, or each 
vendor that contracts with a covered entity to allow that 
covered entity to offer a personal health record to patients as 
part of its electronic health record, is required to enter into 
a written contract (or other written arrangement) described in 
section 164.502(e)(2) of title 45, Code of Federal Regulations 
and a written contract (or other arrangement) described in 
section 164.308(b) of such title, with such entity and shall be 
treated as a business associate of the covered entity for 
purposes of the provisions of this subtitle and subparts C and 
E of part 164 of title 45, Code of Federal Regulations, as such 
provisions are in effect as of the date of enactment of this 
title.

SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLOSURES 
                    CRIMINAL PENALTIES.

    Section 1177(a) of the Social Security Act (42 U.S.C. 
1320d-6(a)) is amended by adding at the end the following new 
sentence: ``For purposes of the previous sentence, a person 
(including an employee or other individual) shall be considered 
to have obtained or disclosed individually identifiable health 
information in violation of this part if the information is 
maintained by a covered entity (as defined in the HIPAA privacy 
regulation described in section 1180(b)(3)) and the individual 
obtained or disclosed such information without 
authorization.''.

SEC. 13410. IMPROVED ENFORCEMENT.

    (a) In General.--
            (1) Noncompliance due to willful neglect.--Section 
        1176 of the Social Security Act (42 U.S.C. 1320d-5) is 
        amended--
                    (A) in subsection (b)(1), by striking ``the 
                act constitutes an offense punishable under 
                section 1177'' and inserting ``a penalty has 
                been imposed under section 1177 with respect to 
                such act''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Noncompliance Due to Willful Neglect.--
            ``(1) In general.--A violation of a provision of 
        this part due to willful neglect is a violation for 
        which the Secretary is required to impose a penalty 
        under subsection (a)(1).
            ``(2) Required investigation.--For purposes of 
        paragraph (1), the Secretary shall formally investigate 
        any complaint of a violation of a provision of this 
        part if a preliminary investigation of the facts of the 
        complaint indicate such a possible violation due to 
        willful neglect.''.
            (2) Enforcement under social security act.--Any 
        violation by a covered entity under this subtitle is 
        subject to enforcement and penalties under section 1176 
        and 1177 of the Social Security Act.
    (b) Effective Date; Regulations.--
            (1) The amendments made by subsection (a) shall 
        apply to penalties imposed on or after the date that is 
        24 months after the date of the enactment of this 
        title.
            (2) Not later than 18 months after the date of the 
        enactment of this title, the Secretary of Health and 
        Human Services shall promulgate regulations to 
        implement such amendments.
    (c) Distribution of Certain Civil Monetary Penalties 
Collected.--
            (1) In general.--Subject to the regulation 
        promulgated pursuant to paragraph (3), any civil 
        monetary penalty or monetary settlement collected with 
        respect to an offense punishable under this subtitle or 
        section 1176 of the Social Security Act (42 U.S.C. 
        1320d-5) insofar as such section relates to privacy or 
        security shall be transferred to the Office for Civil 
        Rights of the Department of Health and Human Services 
        to be used for purposes of enforcing the provisions of 
        this subtitle and subparts C and E of part 164 of title 
        45, Code of Federal Regulations, as such provisions are 
        in effect as of the date of enactment of this Act.
            (2) GAO report.--Not later than 18 months after the 
        date of the enactment of this title, the Comptroller 
        General shall submit to the Secretary a report 
        including recommendations for a methodology under which 
        an individual who is harmed by an act that constitutes 
        an offense referred to in paragraph (1) may receive a 
        percentage of any civil monetary penalty or monetary 
        settlement collected with respect to such offense.
            (3) Establishment of methodology to distribute 
        percentage of cmps collected to harmed individuals.--
        Not later than 3 years after the date of the enactment 
        of this title, the Secretary shall establish by 
        regulation and based on the recommendations submitted 
        under paragraph (2), a methodology under which an 
        individual who is harmed by an act that constitutes an 
        offense referred to in paragraph (1) may receive a 
        percentage of any civil monetary penalty or monetary 
        settlement collected with respect to such offense.
            (4) Application of methodology.--The methodology 
        under paragraph (3) shall be applied with respect to 
        civil monetary penalties or monetary settlements 
        imposed on or after the effective date of the 
        regulation.
    (d) Tiered Increase in Amount of Civil Monetary 
Penalties.--
            (1) In general.--Section 1176(a)(1) of the Social 
        Security Act (42 U.S.C. 1320d-5(a)(1)) is amended by 
        striking ``who violates a provision of this part a 
        penalty of not more than'' and all that follows and 
        inserting the following: ``who violates a provision of 
        this part--
                    ``(A) in the case of a violation of such 
                provision in which it is established that the 
                person did not know (and by exercising 
                reasonable diligence would not have known) that 
                such person violated such provision, a penalty 
                for each such violation of an amount that is at 
                least the amount described in paragraph (3)(A) 
                but not to exceed the amount described in 
                paragraph (3)(D);
                    ``(B) in the case of a violation of such 
                provision in which it is established that the 
                violation was due to reasonable cause and not 
                to willful neglect, a penalty for each such 
                violation of an amount that is at least the 
                amount described in paragraph (3)(B) but not to 
                exceed the amount described in paragraph 
                (3)(D); and
                    ``(C) in the case of a violation of such 
                provision in which it is established that the 
                violation was due to willful neglect--
                            ``(i) if the violation is corrected 
                        as described in subsection (b)(3)(A), a 
                        penalty in an amount that is at least 
                        the amount described in paragraph 
                        (3)(C) but not to exceed the amount 
                        described in paragraph (3)(D); and
                            ``(ii) if the violation is not 
                        corrected as described in such 
                        subsection, a penalty in an amount that 
                        is at least the amount described in 
                        paragraph (3)(D).
                In determining the amount of a penalty under 
                this section for a violation, the Secretary 
                shall base such determination on the nature and 
                extent of the violation and the nature and 
                extent of the harm resulting from such 
                violation.''.
            (2) Tiers of penalties described.--Section 1176(a) 
        of such Act (42 U.S.C. 1320d-5(a)) is further amended 
        by adding at the end the following new paragraph:
            ``(3) Tiers of penalties described.--For purposes 
        of paragraph (1), with respect to a violation by a 
        person of a provision of this part--
                    ``(A) the amount described in this 
                subparagraph is $100 for each such violation, 
                except that the total amount imposed on the 
                person for all such violations of an identical 
                requirement or prohibition during a calendar 
                year may not exceed $25,000;
                    ``(B) the amount described in this 
                subparagraph is $1,000 for each such violation, 
                except that the total amount imposed on the 
                person for all such violations of an identical 
                requirement or prohibition during a calendar 
                year may not exceed $100,000;
                    ``(C) the amount described in this 
                subparagraph is $10,000 for each such 
                violation, except that the total amount imposed 
                on the person for all such violations of an 
                identical requirement or prohibition during a 
                calendar year may not exceed $250,000; and
                    ``(D) the amount described in this 
                subparagraph is $50,000 for each such 
                violation, except that the total amount imposed 
                on the person for all such violations of an 
                identical requirement or prohibition during a 
                calendar year may not exceed $1,500,000.''.
            (3) Conforming amendments.--Section 1176(b) of such 
        Act (42 U.S.C. 1320d-5(b)) is amended--
                    (A) by striking paragraph (2) and 
                redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (B) in paragraph (2), as so redesignated--
                            (i) in subparagraph (A), by 
                        striking ``in subparagraph (B), a 
                        penalty may not be imposed under 
                        subsection (a) if'' and all that 
                        follows through ``the failure to comply 
                        is corrected'' and inserting ``in 
                        subparagraph (B) or subsection 
                        (a)(1)(C), a penalty may not be imposed 
                        under subsection (a) if the failure to 
                        comply is corrected''; and
                            (ii) in subparagraph (B), by 
                        striking ``(A)(ii)'' and inserting 
                        ``(A)'' each place it appears.
            (4) Effective date.--The amendments made by this 
        subsection shall apply to violations occurring after 
        the date of the enactment of this title.
    (e) Enforcement Through State Attorneys General.--
            (1) In general.--Section 1176 of the Social 
        Security Act (42 U.S.C. 1320d-5) is amended by adding 
        at the end the following new subsection:
    ``(d) Enforcement by State Attorneys General.--
            ``(1) Civil action.--Except as provided in 
        subsection (b), in any case in which the attorney 
        general of a State has reason to believe that an 
        interest of one or more of the residents of that State 
        has been or is threatened or adversely affected by any 
        person who violates a provision of this part, the 
        attorney general of the State, as parens patriae, may 
        bring a civil action on behalf of such residents of the 
        State in a district court of the United States of 
        appropriate jurisdiction--
                    ``(A) to enjoin further such violation by 
                the defendant; or
                    ``(B) to obtain damages on behalf of such 
                residents of the State, in an amount equal to 
                the amount determined under paragraph (2).
            ``(2) Statutory damages.--
                    ``(A) In general.--For purposes of 
                paragraph (1)(B), the amount determined under 
                this paragraph is the amount calculated by 
                multiplying the number of violations by up to 
                $100. For purposes of the preceding sentence, 
                in the case of a continuing violation, the 
                number of violations shall be determined 
                consistent with the HIPAA privacy regulations 
                (as defined in section 1180(b)(3)) for 
                violations of subsection (a).
                    ``(B) Limitation.--The total amount of 
                damages imposed on the person for all 
                violations of an identical requirement or 
                prohibition during a calendar year may not 
                exceed $25,000.
                    ``(C) Reduction of damages.--In assessing 
                damages under subparagraph (A), the court may 
                consider the factors the Secretary may consider 
                in determining the amount of a civil money 
                penalty under subsection (a) under the HIPAA 
                privacy regulations.
            ``(3) Attorney fees.--In the case of any successful 
        action under paragraph (1), the court, in its 
        discretion, may award the costs of the action and 
        reasonable attorney fees to the State.
            ``(4) Notice to secretary.--The State shall serve 
        prior written notice of any action under paragraph (1) 
        upon the Secretary and provide the Secretary with a 
        copy of its complaint, except in any case in which such 
        prior notice is not feasible, in which case the State 
        shall serve such notice immediately upon instituting 
        such action. The Secretary shall have the right--
                    ``(A) to intervene in the action;
                    ``(B) upon so intervening, to be heard on 
                all matters arising therein; and
                    ``(C) to file petitions for appeal.
            ``(5) Construction.--For purposes of bringing any 
        civil action under paragraph (1), nothing in this 
        section shall be construed to prevent an attorney 
        general of a State from exercising the powers conferred 
        on the attorney general by the laws of that State.
            ``(6) Venue; service of process.--
                    ``(A) Venue.--Any action brought under 
                paragraph (1) may be brought in the district 
                court of the United States that meets 
                applicable requirements relating to venue under 
                section 1391 of title 28, United States Code.
                    ``(B) Service of process.--In an action 
                brought under paragraph (1), process may be 
                served in any district in which the defendant--
                            ``(i) is an inhabitant; or
                            ``(ii) maintains a physical place 
                        of business.
            ``(7) Limitation on state action while federal 
        action is pending.--If the Secretary has instituted an 
        action against a person under subsection (a) with 
        respect to a specific violation of this part, no State 
        attorney general may bring an action under this 
        subsection against the person with respect to such 
        violation during the pendency of that action.
            ``(8) Application of cmp statute of limitation.--A 
        civil action may not be instituted with respect to a 
        violation of this part unless an action to impose a 
        civil money penalty may be instituted under subsection 
        (a) with respect to such violation consistent with the 
        second sentence of section 1128A(c)(1).''.
            (2) Conforming amendments.--Subsection (b) of such 
        section, as amended by subsection (d)(3), is amended--
                    (A) in paragraph (1), by striking ``A 
                penalty may not be imposed under subsection 
                (a)'' and inserting ``No penalty may be imposed 
                under subsection (a) and no damages obtained 
                under subsection (d)'';
                    (B) in paragraph (2)(A)--
                            (i) after ``subsection 
                        (a)(1)(C),'', by striking ``a penalty 
                        may not be imposed under subsection 
                        (a)'' and inserting ``no penalty may be 
                        imposed under subsection (a) and no 
                        damages obtained under subsection 
                        (d)''; and
                            (ii) in clause (ii), by inserting 
                        ``or damages'' after ``the penalty'';
                    (C) in paragraph (2)(B)(i), by striking 
                ``The period'' and inserting ``With respect to 
                the imposition of a penalty by the Secretary 
                under subsection (a), the period''; and
                    (D) in paragraph (3), by inserting ``and 
                any damages under subsection (d)'' after ``any 
                penalty under subsection (a)''.
            (3) Effective date.--The amendments made by this 
        subsection shall apply to violations occurring after 
        the date of the enactment of this Act.
    (f) Allowing Continued Use of Corrective Action.--Such 
section is further amended by adding at the end the following 
new subsection:
    ``(e) Allowing Continued Use of Corrective Action.--Nothing 
in this section shall be construed as preventing the Office for 
Civil Rights of the Department of Health and Human Services 
from continuing, in its discretion, to use corrective action 
without a penalty in cases where the person did not know (and 
by exercising reasonable diligence would not have known) of the 
violation involved.''.

SEC. 13411. AUDITS.

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

 PART 2--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE 
                             DATE; REPORTS

SEC. 13421. RELATIONSHIP TO OTHER LAWS.

    (a) Application of HIPAA State Preemption.--Section 1178 of 
the Social Security Act (42 U.S.C. 1320d-7) shall apply to a 
provision or requirement under this subtitle in the same manner 
that such section applies to a provision or requirement under 
part C of title XI of such Act or a standard or implementation 
specification adopted or established under sections 1172 
through 1174 of such Act.
    (b) Health Insurance Portability and Accountability Act.--
The standards governing the privacy and security of 
individually identifiable health information promulgated by the 
Secretary under sections 262(a) and 264 of the Health Insurance 
Portability and Accountability Act of 1996 shall remain in 
effect to the extent that they are consistent with this 
subtitle. The Secretary shall by rule amend such Federal 
regulations as required to make such regulations consistent 
with this subtitle.
    (c) Construction.--Nothing in this subtitle shall 
constitute a waiver of any privilege otherwise applicable to an 
individual with respect to the protected health information of 
such individual.

SEC. 13422. REGULATORY REFERENCES.

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

SEC. 13423. EFFECTIVE DATE.

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

SEC. 13424. STUDIES, REPORTS, GUIDANCE.

    (a) Report on Compliance.--
            (1) In general.--For the first year beginning after 
        the date of the enactment of this Act and annually 
        thereafter, the Secretary shall prepare and submit to 
        the Committee on Health, Education, Labor, and Pensions 
        of the Senate and the Committee on Ways and Means and 
        the Committee on Energy and Commerce of the House of 
        Representatives a report concerning complaints of 
        alleged violations of law, including the provisions of 
        this subtitle as well as the provisions of subparts C 
        and E of part 164 of title 45, Code of Federal 
        Regulations, (as such provisions are in effect as of 
        the date of enactment of this Act) relating to privacy 
        and security of health information that are received by 
        the Secretary during the year for which the report is 
        being prepared. Each such report shall include, with 
        respect to such complaints received during the year--
                    (A) the number of such complaints;
                    (B) the number of such complaints resolved 
                informally, a summary of the types of such 
                complaints so resolved, and the number of 
                covered entities that received technical 
                assistance from the Secretary during such year 
                in order to achieve compliance with such 
                provisions and the types of such technical 
                assistance provided;
                    (C) the number of such complaints that have 
                resulted in the imposition of civil monetary 
                penalties or have been resolved through 
                monetary settlements, including the nature of 
                the complaints involved and the amount paid in 
                each penalty or settlement;
                    (D) the number of compliance reviews 
                conducted and the outcome of each such review;
                    (E) the number of subpoenas or inquiries 
                issued;
                    (F) the Secretary's plan for improving 
                compliance with and enforcement of such 
                provisions for the following year; and
                    (G) the number of audits performed and a 
                summary of audit findings pursuant to section 
                13411.
            (2) Availability to public.--Each report under 
        paragraph (1) shall be made available to the public on 
        the Internet website of the Department of Health and 
        Human Services.
    (b) Study and Report on Application of Privacy and Security 
Requirements to Non-HIPAA Covered Entities.--
            (1) Study.--Not later than one year after the date 
        of the enactment of this title, the Secretary, in 
        consultation with the Federal Trade Commission, shall 
        conduct a study, and submit a report under paragraph 
        (2), on privacy and security requirements for entities 
        that are not covered entities or business associates as 
        of the date of the enactment of this title, including--
                    (A) requirements relating to security, 
                privacy, and notification in the case of a 
                breach of security or privacy (including the 
                applicability of an exemption to notification 
                in the case of individually identifiable health 
                information that has been rendered unusable, 
                unreadable, or indecipherable through 
                technologies or methodologies recognized by 
                appropriate professional organization or 
                standard setting bodies to provide effective 
                security for the information) that should be 
                applied to--
                            (i) vendors of personal health 
                        records;
                            (ii) entities that offer products 
                        or services through the website of a 
                        vendor of personal health records;
                            (iii) entities that are not covered 
                        entities and that offer products or 
                        services through the websites of 
                        covered entities that offer individuals 
                        personal health records;
                            (iv) entities that are not covered 
                        entities and that access information in 
                        a personal health record or send 
                        information to a personal health 
                        record; and
                            (v) third party service providers 
                        used by a vendor or entity described in 
                        clause (i), (ii), (iii), or (iv) to 
                        assist in providing personal health 
                        record products or services;
                    (B) a determination of which Federal 
                government agency is best equipped to enforce 
                such requirements recommended to be applied to 
                such vendors, entities, and service providers 
                under subparagraph (A); and
                    (C) a timeframe for implementing 
                regulations based on such findings.
            (2) Report.--The Secretary shall submit to the 
        Committee on Finance, the Committee on Health, 
        Education, Labor, and Pensions, and the Committee on 
        Commerce of the Senate and the Committee on Ways and 
        Means and the Committee on Energy and Commerce of the 
        House of Representatives a report on the findings of 
        the study under paragraph (1) and shall include in such 
        report recommendations on the privacy and security 
        requirements described in such paragraph.
    (c) Guidance on Implementation Specification To De-Identify 
Protected Health Information.--Not later than 12 months after 
the date of the enactment of this title, the Secretary shall, 
in consultation with stakeholders, issue guidance on how best 
to implement the requirements for the de-identification of 
protected health information under section 164.514(b) of title 
45, Code of Federal Regulations.
    (d) GAO Report on Treatment Disclosures.--Not later than 
one year after the date of the enactment of this title, the 
Comptroller General of the United States shall submit to the 
Committee on Health, Education, Labor, and Pensions of the 
Senate and the Committee on Ways and Means and the Committee on 
Energy and Commerce of the House of Representatives a report on 
the best practices related to the disclosure among health care 
providers of protected health information of an individual for 
purposes of treatment of such individual. Such report shall 
include an examination of the best practices implemented by 
States and by other entities, such as health information 
exchanges and regional health information organizations, an 
examination of the extent to which such best practices are 
successful with respect to the quality of the resulting health 
care provided to the individual and with respect to the ability 
of the health care provider to manage such best practices, and 
an examination of the use of electronic informed consent for 
disclosing protected health information for treatment, payment, 
and health care operations.
    (e) Report Required.--Not later than 5 years after the date 
of enactment of this section, the Government Accountability 
Office shall submit to Congress and the Secretary of Health and 
Human Services a report on the impact of any of the provisions 
of this Act on health insurance premiums, overall health care 
costs, adoption of electronic health records by providers, and 
reduction in medical errors and other quality improvements.
    (f) Study.--The Secretary shall study the definition of 
``psychotherapy notes'' in section 164.501 of title 45, Code of 
Federal Regulations, with regard to including test data that is 
related to direct responses, scores, items, forms, protocols, 
manuals, or other materials that are part of a mental health 
evaluation, as determined by the mental health professional 
providing treatment or evaluation in such definitions and may, 
based on such study, issue regulations to revise such 
definition.

               TITLE XIV--STATE FISCAL STABILIZATION FUND

                        DEPARTMENT OF EDUCATION

                    State Fiscal Stabilization Fund

    For necessary expenses for a State Fiscal Stabilization 
Fund, $53,600,000,000, which shall be administered by the 
Department of Education.

                     GENERAL PROVISIONS--THIS TITLE

SEC. 14001. ALLOCATIONS.

    (a) Outlying Areas.--From the amount appropriated to carry 
out this title, the Secretary of Education shall first allocate 
up to one-half of 1 percent to the outlying areas on the basis 
of their respective needs, as determined by the Secretary, in 
consultation with the Secretary of the Interior, for activities 
consistent with this title under such terms and conditions as 
the Secretary may determine.
    (b) Administration and Oversight.--The Secretary may, in 
addition, reserve up to $14,000,000 for administration and 
oversight of this title, including for program evaluation.
    (c) Reservation for Additional Programs.--After reserving 
funds under subsections (a) and (b), the Secretary shall 
reserve $5,000,000,000 for grants under sections 14006 and 
14007.
    (d) State Allocations.--After carrying out subsections (a), 
(b), and (c), the Secretary shall allocate the remaining funds 
made available to carry out this title to the States as 
follows:
            (1) 61 percent on the basis of their relative 
        population of individuals aged 5 through 24.
            (2) 39 percent on the basis of their relative total 
        population.
    (e) State Grants.--From funds allocated under subsection 
(d), the Secretary shall make grants to the Governor of each 
State.
    (f) Reallocation.--The Governor shall return to the 
Secretary any funds received under subsection (e) that the 
Governor does not award as subgrants or otherwise commit within 
two years of receiving such funds, and the Secretary shall 
reallocate such funds to the remaining States in accordance 
with subsection (d).

SEC. 14002. STATE USES OF FUNDS.

    (a) Education Fund.--
            (1) In general.--For each fiscal year, the Governor 
        shall use 81.8 percent of the State's allocation under 
        section 14001(d) for the support of elementary, 
        secondary, and postsecondary education and, as 
        applicable, early childhood education programs and 
        services.
            (2) Restoring state support for education.--
                    (A) In general.--The Governor shall first 
                use the funds described in paragraph (1)--
                            (i) to provide the amount of funds, 
                        through the State's primary elementary 
                        and secondary funding formulae, that is 
                        needed--
                                    (I) to restore, in each of 
                                fiscal years 2009, 2010, and 
                                2011, the level of State 
                                support provided through such 
                                formulae to the greater of the 
                                fiscal year 2008 or fiscal year 
                                2009 level; and
                                    (II) where applicable, to 
                                allow existing State formulae 
                                increases to support elementary 
                                and secondary education for 
                                fiscal years 2010 and 2011 to 
                                be implemented and allow 
                                funding for phasing in State 
                                equity and adequacy 
                                adjustments, if such increases 
                                were enacted pursuant to State 
                                law prior to October 1, 2008.
                            (ii) to provide, in each of fiscal 
                        years 2009, 2010, and 2011, the amount 
                        of funds to public institutions of 
                        higher education in the State that is 
                        needed to restore State support for 
                        such institutions (excluding tuition 
                        and fees paid by students) to the 
                        greater of the fiscal year 2008 or 
                        fiscal year 2009 level.
                    (B) Shortfall.--If the Governor determines 
                that the amount of funds available under 
                paragraph (1) is insufficient to support, in 
                each of fiscal years 2009, 2010, and 2011, 
                public elementary, secondary, and higher 
                education at the levels described in clauses 
                (i) and (ii) of subparagraph (A), the Governor 
                shall allocate those funds between those 
                clauses in proportion to the relative shortfall 
                in State support for the education sectors 
                described in those clauses.
                    (C) Fiscal year.--For purposes of this 
                paragraph, the term ``fiscal year'' shall have 
                the meaning given such term under State law.
            (3) Subgrants to improve basic programs operated by 
        local educational agencies.--After carrying out 
        paragraph (2), the Governor shall use any funds 
        remaining under paragraph (1) to provide local 
        educational agencies in the State with subgrants based 
        on their relative shares of funding under part A of 
        title I of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 6311 et seq.) for the most recent 
        year for which data are available.
    (b) Other Government Services.--
            (1) In general.--The Governor shall use 18.2 
        percent of the State's allocation under section 14001 
        for public safety and other government services, which 
        may include assistance for elementary and secondary 
        education and public institutions of higher education, 
        and for modernization, renovation, or repair of public 
        school facilities and institutions of higher education 
        facilities, including modernization, renovation, and 
        repairs that are consistent with a recognized green 
        building rating system.
            (2) Availability to all institutions of higher 
        education.--A Governor shall not consider the type or 
        mission of an institution of higher education, and 
        shall consider any institution for funding for 
        modernization, renovation, and repairs within the State 
        that--
                    (A) qualifies as an institution of higher 
                education, as defined in subsection 14013(3); 
                and
                    (B) continues to be eligible to participate 
                in the programs under title IV of the Higher 
                Education Act of 1965.
    (c) Rule of Construction.--Nothing in this section shall 
allow a local educational agency to engage in school 
modernization, renovation, or repair that is inconsistent with 
State law.

SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

    (a) In General.--A local educational agency that receives 
funds under this title may use the funds for any activity 
authorized by the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) (``ESEA''), the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.) (``IDEA''), 
the Adult and Family Literacy Act (20 U.S.C. 1400 et seq.), or 
the Carl D. Perkins Career and Technical Education Act of 2006 
(20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for 
modernization, renovation, or repair of public school 
facilities, including modernization, renovation, and repairs 
that are consistent with a recognized green building rating 
system.
    (b) Prohibition.--A local educational agency may not use 
funds received under this title for--
            (1) payment of maintenance costs;
            (2) stadiums or other facilities primarily used for 
        athletic contests or exhibitions or other events for 
        which admission is charged to the general public;
            (3) purchase or upgrade of vehicles; or
            (4) improvement of stand-alone facilities whose 
        purpose is not the education of children, including 
        central office administration or operations or 
        logistical support facilities.
    (c) Rule of Construction.--Nothing in this section shall 
allow a local educational agency to engage in school 
modernization, renovation, or repair that is inconsistent with 
State law.

SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--A public institution of higher education 
that receives funds under this title shall use the funds for 
education and general expenditures, and in such a way as to 
mitigate the need to raise tuition and fees for in-State 
students, or for modernization, renovation, or repair of 
institution of higher education facilities that are primarily 
used for instruction, research, or student housing, including 
modernization, renovation, and repairs that are consistent with 
a recognized green building rating system.
    (b) Prohibition.--An institution of higher education may 
not use funds received under this title to increase its 
endowment.
    (c) Additional Prohibition.--No funds awarded under this 
title may be used for--
            (1) the maintenance of systems, equipment, or 
        facilities;
            (2) modernization, renovation, or repair of 
        stadiums or other facilities primarily used for 
        athletic contests or exhibitions or other events for 
        which admission is charged to the general public; or
            (3) modernization, renovation, or repair of 
        facilities--
                    (A) used for sectarian instruction or 
                religious worship; or
                    (B) in which a substantial portion of the 
                functions of the facilities are subsumed in a 
                religious mission.

SEC. 14005. STATE APPLICATIONS.

    (a) In General.--The Governor of a State desiring to 
receive an allocation under section 14001 shall submit an 
application at such time, in such manner, and containing such 
information as the Secretary may reasonably require.
    (b) Application.--In such application, the Governor shall--
            (1) include the assurances described in subsection 
        (d);
            (2) provide baseline data that demonstrates the 
        State's current status in each of the areas described 
        in such assurances; and
            (3) describe how the State intends to use its 
        allocation, including whether the State will use such 
        allocation to meet maintenance of effort requirements 
        under the ESEA and IDEA and, in such cases, what amount 
        will be used to meet such requirements.
    (c) Incentive Grant Application.--The Governor of a State 
seeking a grant under section 14006 shall--
            (1) submit an application for consideration;
            (2) describe the status of the State's progress in 
        each of the areas described in subsection (d), and the 
        strategies the State is employing to help ensure that 
        students in the subgroups described in section 
        1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C. 
        6311(b)(2)(C)(v)(II)) who have not met the State's 
        proficiency targets continue making progress toward 
        meeting the State's student academic achievement 
        standards;
            (3) describe the achievement and graduation rates 
        (as described in section 1111(b)(2)(C)(vi) of the ESEA 
        (20 U.S.C. 6311(b)(2)(C)(vi)) and as clarified in 
        section 200.19(b)(1) of title 34, Code of Federal 
        Regulations) of public elementary and secondary school 
        students in the State, and the strategies the State is 
        employing to help ensure that all subgroups of students 
        identified in section 1111(b)(2) of the ESEA (20 U.S.C. 
        6311(b)(2)) in the State continue making progress 
        toward meeting the State's student academic achievement 
        standards;
            (4) describe how the State would use its grant 
        funding to improve student academic achievement in the 
        State, including how it will allocate the funds to give 
        priority to high-need local educational agencies; and
            (5) include a plan for evaluating the State's 
        progress in closing achievement gaps.
    (d) Assurances.--An application under subsection (b) shall 
include the following assurances:
            (1) Maintenance of effort.--
                    (A) Elementary and secondary education.--
                The State will, in each of fiscal years 2009, 
                2010, and 2011, maintain State support for 
                elementary and secondary education at least at 
                the level of such support in fiscal year 2006.
                    (B) Higher education.--The State will, in 
                each of fiscal years 2009, 2010, and 2011, 
                maintain State support for public institutions 
                of higher education (not including support for 
                capital projects or for research and 
                development or tuition and fees paid by 
                students) at least at the level of such support 
                in fiscal year 2006.
            (2) Achieving equity in teacher distribution.--The 
        State will take actions to improve teacher 
        effectiveness and comply with section 1111(b)(8)(C) of 
        the ESEA (20 U.S.C. 6311(b)(8)(C)) in order to address 
        inequities in the distribution of highly qualified 
        teachers between high- and low-poverty schools, and to 
        ensure that low-income and minority children are not 
        taught at higher rates than other children by 
        inexperienced, unqualified, or out-of-field teachers.
            (3) Improving collection and use of data.--The 
        State will establish a longitudinal data system that 
        includes the elements described in section 
        6401(e)(2)(D) of the America COMPETES Act (20 U.S.C. 
        9871).
            (4) Standards and assessments.--The State--
                    (A) will enhance the quality of the 
                academic assessments it administers pursuant to 
                section 1111(b)(3) of the ESEA (20 U.S.C. 
                6311(b)(3)) through activities such as those 
                described in section 6112(a) of such Act (20 
                U.S.C. 7301a(a));
                    (B) will comply with the requirements of 
                paragraphs (3)(C)(ix) and (6) of section 
                1111(b) of the ESEA (20 U.S.C. 6311(b)) and 
                section 612(a)(16) of the IDEA (20 U.S.C. 
                1412(a)(16)) related to the inclusion of 
                children with disabilities and limited English 
                proficient students in State assessments, the 
                development of valid and reliable assessments 
                for those students, and the provision of 
                accommodations that enable their participation 
                in State assessments; and
                    (C) will take steps to improve State 
                academic content standards and student academic 
                achievement standards consistent with section 
                6401(e)(1)(9)(A)(ii) of the America COMPETES 
                Act.
            (5) Supporting struggling schools.--The State will 
        ensure compliance with the requirements of section 
        1116(a)(7)(C)(iv) and section 1116(a)(8)(B) of the ESEA 
        with respect to schools identified under such sections.

SEC. 14006. STATE INCENTIVE GRANTS.

    (a) In General.--
            (1) Reservation.--From the total amount reserved 
        under section 14001(c) that is not used for section 
        14007, the Secretary may reserve up to 1 percent for 
        technical assistance to States to assist them in 
        meeting the objectives of paragraphs (2), (3), (4), and 
        (5) of section 14005(d).
            (2) Remainder.--Of the remaining funds, the 
        Secretary shall, in fiscal year 2010, make grants to 
        States that have made significant progress in meeting 
        the objectives of paragraphs (2), (3), (4), and (5) of 
        section 14005(d).
    (b) Basis for Grants.--The Secretary shall determine which 
States receive grants under this section, and the amount of 
those grants, on the basis of information provided in State 
applications under section 14005 and such other criteria as the 
Secretary determines appropriate, which may include a State's 
need for assistance to help meet the objective of paragraphs 
(2), (3), (4), and (5) of section 14005(d).
    (c) Subgrants to Local Educational Agencies.--Each State 
receiving a grant under this section shall use at least 50 
percent of the grant to provide local educational agencies in 
the State with subgrants based on their relative shares of 
funding under part A of title I of the ESEA (20 U.S.C. 6311 et 
seq.) for the most recent year.

SEC. 14007. INNOVATION FUND.

    (a) In General.--
            (1) Eligible entities.--For the purposes of this 
        section, the term ``eligible entity'' means--
                    (A) a local educational agency; or
                    (B) a partnership between a nonprofit 
                organization and--
                            (i) one or more local educational 
                        agencies; or
                            (ii) a consortium of schools.
            (2) Program established.--From the total amount 
        reserved under section 14001(c), the Secretary may 
        reserve up to $650,000,000 to establish an Innovation 
        Fund, which shall consist of academic achievement 
        awards that recognize eligible entities that meet the 
        requirements described in subsection (b).
            (3) Basis for awards.--The Secretary shall make 
        awards to eligible entities that have made significant 
        gains in closing the achievement gap as described in 
        subsection (b)(1)--
                    (A) to allow such eligible entities to 
                expand their work and serve as models for best 
                practices;
                    (B) to allow such eligible entities to work 
                in partnership with the private sector and the 
                philanthropic community; and
                    (C) to identify and document best practices 
                that can be shared, and taken to scale based on 
                demonstrated success.
    (b) Eligibility.--To be eligible for such an award, an 
eligible entity shall--
            (1) have significantly closed the achievement gaps 
        between groups of students described in section 
        1111(b)(2) of the ESEA (20 U.S.C. 6311(b)(2));
            (2) have exceeded the State's annual measurable 
        objectives consistent with such section 1111(b)(2) for 
        2 or more consecutive years or have demonstrated 
        success in significantly increasing student academic 
        achievement for all groups of students described in 
        such section through another measure, such as measures 
        described in section 1111(c)(2) of the ESEA;
            (3) have made significant improvement in other 
        areas, such as graduation rates or increased 
        recruitment and placement of high-quality teachers and 
        school leaders, as demonstrated with meaningful data; 
        and
            (4) demonstrate that they have established 
        partnerships with the private sector, which may include 
        philanthropic organizations, and that the private 
        sector will provide matching funds in order to help 
        bring results to scale.
    (c) Special Rule.--In the case of an eligible entity that 
includes a nonprofit organization, the eligible entity shall be 
considered to have met the eligibility requirements of 
paragraphs (1), (2), and (3) of subsection (b) if such 
nonprofit organization has a record of meeting such 
requirements.

SEC. 14008. STATE REPORTS.

    For each year of the program under this title, a State 
receiving funds under this title shall submit a report to the 
Secretary, at such time and in such manner as the Secretary may 
require, that describes--
            (1) the uses of funds provided under this title 
        within the State;
            (2) how the State distributed the funds it received 
        under this title;
            (3) the number of jobs that the Governor estimates 
        were saved or created with funds the State received 
        under this title;
            (4) tax increases that the Governor estimates were 
        averted because of the availability of funds from this 
        title;
            (5) the State's progress in reducing inequities in 
        the distribution of highly qualified teachers, in 
        implementing a State longitudinal data system, and in 
        developing and implementing valid and reliable 
        assessments for limited English proficient students and 
        children with disabilities;
            (6) the tuition and fee increases for in-State 
        students imposed by public institutions of higher 
        education in the State during the period of 
        availability of funds under this title, and a 
        description of any actions taken by the State to limit 
        those increases;
            (7) the extent to which public institutions of 
        higher education maintained, increased, or decreased 
        enrollment of in-State students, including students 
        eligible for Pell Grants or other need-based financial 
        assistance; and
            (8) a description of each modernization, renovation 
        and repair project funded, which shall include the 
        amounts awarded and project costs.

SEC. 14009. EVALUATION.

    The Comptroller General of the United States shall conduct 
evaluations of the programs under sections 14006 and 14007 
which shall include, but not be limited to, the criteria used 
for the awards made, the States selected for awards, award 
amounts, how each State used the award received, and the impact 
of this funding on the progress made toward closing achievement 
gaps.

SEC. 14010. SECRETARY'S REPORT TO CONGRESS.

    The Secretary shall submit a report to the Committee on 
Education and Labor of the House of Representatives, the 
Committee on Health, Education, Labor, and Pensions of the 
Senate, and the Committees on Appropriations of the House of 
Representatives and of the Senate, not less than 6 months 
following the submission of State reports, that evaluates the 
information provided in the State reports under section 14008 
and the information required by section 14005(b)(3) including 
State-by-State information.

SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

    No recipient of funds under this title shall use such funds 
to provide financial assistance to students to attend private 
elementary or secondary schools.

SEC. 14012. FISCAL RELIEF.

    (a) In General.--For the purpose of relieving fiscal 
burdens on States and local educational agencies that have 
experienced a precipitous decline in financial resources, the 
Secretary of Education may waive or modify any requirement of 
this title relating to maintaining fiscal effort.
    (b) Duration.--A waiver or modification under this section 
shall be for any of fiscal year 2009, fiscal year 2010, or 
fiscal year 2011, as determined by the Secretary.
    (c) Criteria.--The Secretary shall not grant a waiver or 
modification under this section unless the Secretary determines 
that the State or local educational agency receiving such 
waiver or modification will not provide for elementary and 
secondary education, for the fiscal year under consideration, a 
smaller percentage of the total revenues available to the State 
or local educational agency than the amount provided for such 
purpose in the preceding fiscal year.
    (d) Maintenance of Effort.--Upon prior approval from the 
Secretary, a State or local educational agency that receives 
funds under this title may treat any portion of such funds that 
is used for elementary, secondary, or postsecondary education 
as non-Federal funds for the purpose of any requirement to 
maintain fiscal effort under any other program, including part 
C of the Individuals with Disabilities Education Act (20 U.S.C. 
1431 et seq.), administered by the Secretary.
    (e) Subsequent Level of Effort.--Notwithstanding (d), the 
level of effort required by a State or local educational agency 
for the following fiscal year shall not be reduced.

SEC. 14013. DEFINITIONS.

    Except as otherwise provided in this title, as used in this 
title--
            (1) the terms ``elementary education'' and 
        ``secondary education'' have the meaning given such 
        terms under State law;
            (2) the term ``high-need local educational agency'' 
        means a local educational agency--
                    (A) that serves not fewer than 10,000 
                children from families with incomes below the 
                poverty line; or
                    (B) for which not less than 20 percent of 
                the children served by the agency are from 
                families with incomes below the poverty line;
            (3) the term ``institution of higher education'' 
        has the meaning given such term in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001);
            (4) the term ``Secretary'' means the Secretary of 
        Education;
            (5) the term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico; and
            (6) any other term used that is defined in section 
        9101 of the ESEA (20 U.S.C. 7801) shall have the 
        meaning given the term in such section.

               TITLE XV--ACCOUNTABILITY AND TRANSPARENCY

SEC. 1501. DEFINITIONS.

    In this title:
            (1) Agency.--The term ``agency'' has the meaning 
        given under section 551 of title 5, United States Code.
            (2) Board.--The term ``Board'' means the Recovery 
        Accountability and Transparency Board established in 
        section 1521.
            (3) Chairperson.--The term ``Chairperson'' means 
        the Chairperson of the Board.
            (4) Covered funds.--The term ``covered funds'' 
        means any funds that are expended or obligated from 
        appropriations made under this Act.
            (5) Panel.--The term ``Panel'' means the Recovery 
        Independent Advisory Panel established in section 1541.

          Subtitle A--Transparency and Oversight Requirements

SEC. 1511. CERTIFICATIONS.

    With respect to covered funds made available to State or 
local governments for infrastructure investments, the Governor, 
mayor, or other chief executive, as appropriate, shall certify 
that the infrastructure investment has received the full review 
and vetting required by law and that the chief executive 
accepts responsibility that the infrastructure investment is an 
appropriate use of taxpayer dollars. Such certification shall 
include a description of the investment, the estimated total 
cost, and the amount of covered funds to be used, and shall be 
posted on a website and linked to the website established by 
section 1526. A State or local agency may not receive 
infrastructure investment funding from funds made available in 
this Act unless this certification is made and posted.

SEC. 1512. REPORTS ON USE OF FUNDS.

    (a) Short Title.--This section may be cited as the ``Jobs 
Accountability Act''.
    (b) Definitions.--In this section:
            (1) Recipient.--The term ``recipient''--
                    (A) means any entity that receives recovery 
                funds directly from the Federal Government 
                (including recovery funds received through 
                grant, loan, or contract) other than an 
                individual; and
                    (B) includes a State that receives recovery 
                funds.
            (2) Recovery funds.--The term ``recovery funds'' 
        means any funds that are made available from 
        appropriations made under this Act.
    (c) Recipient Reports.--Not later than 10 days after the 
end of each calendar quarter, each recipient that received 
recovery funds from a Federal agency shall submit a report to 
that agency that contains--
            (1) the total amount of recovery funds received 
        from that agency;
            (2) the amount of recovery funds received that were 
        expended or obligated to projects or activities; and
            (3) a detailed list of all projects or activities 
        for which recovery funds were expended or obligated, 
        including--
                    (A) the name of the project or activity;
                    (B) a description of the project or 
                activity;
                    (C) an evaluation of the completion status 
                of the project or activity;
                    (D) an estimate of the number of jobs 
                created and the number of jobs retained by the 
                project or activity; and
                    (E) for infrastructure investments made by 
                State and local governments, the purpose, total 
                cost, and rationale of the agency for funding 
                the infrastructure investment with funds made 
                available under this Act, and name of the 
                person to contact at the agency if there are 
                concerns with the infrastructure investment.
            (4) Detailed information on any subcontracts or 
        subgrants awarded by the recipient to include the data 
        elements required to comply with the Federal Funding 
        Accountability and Transparency Act of 2006 (Public Law 
        109-282), allowing aggregate reporting on awards below 
        $25,000 or to individuals, as prescribed by the 
        Director of the Office of Management and Budget.
    (d) Agency Reports.--Not later than 30 days after the end 
of each calendar quarter, each agency that made recovery funds 
available to any recipient shall make the information in 
reports submitted under subsection (c) publicly available by 
posting the information on a website.
    (e) Other Reports.--The Congressional Budget Office and the 
Government Accountability Office shall comment on the 
information described in subsection (c)(3)(D) for any reports 
submitted under subsection (c). Such comments shall be due 
within 45 days after such reports are submitted.
    (f) Compliance.--Within 180 days of enactment, as a 
condition of receipt of funds under this Act, Federal agencies 
shall require any recipient of such funds to provide the 
information required under subsection (c).
    (g) Guidance.--Federal agencies, in coordination with the 
Director of the Office of Management and Budget, shall provide 
for user-friendly means for recipients of covered funds to meet 
the requirements of this section.
    (h) Registration.--Funding recipients required to report 
information per subsection (c)(4) must register with the 
Central Contractor Registration database or complete other 
registration requirements as determined by the Director of the 
Office of Management and Budget.

SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.

    (a) In General.--In consultation with the Director of the 
Office of Management and Budget and the Secretary of the 
Treasury, the Chairperson of the Council of Economic Advisers 
shall submit quarterly reports to the Committees on 
Appropriations of the Senate and House of Representatives that 
detail the impact of programs funded through covered funds on 
employment, estimated economic growth, and other key economic 
indicators.
    (b) Submission of Reports.--
            (1) First report.--The first report submitted under 
        subsection (a) shall be submitted not later than 45 
        days after the end of the first full quarter following 
        the date of enactment of this Act.
            (2) Last report.--The last report required to be 
        submitted under subsection (a) shall apply to the 
        quarter in which the Board terminates under section 
        1530.

SEC. 1514. INSPECTOR GENERAL REVIEWS.

    (a) Reviews.--Any inspector general of a Federal department 
or executive agency shall review, as appropriate, any concerns 
raised by the public about specific investments using funds 
made available in this Act. Any findings of such reviews not 
related to an ongoing criminal proceeding shall be relayed 
immediately to the head of the department or agency concerned. 
In addition, the findings of such reviews, along with any 
audits conducted by any inspector general of funds made 
available in this Act, shall be posted on the inspector 
general's website and linked to the website established by 
section 1526, except that portions of reports may be redacted 
to the extent the portions would disclose information that is 
protected from public disclosure under sections 552 and 552a of 
title 5, United States Code.

SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN RECORDS 
                    AND EMPLOYEES.

    (a) Access.--With respect to each contract or grant awarded 
using covered funds, any representative of an appropriate 
inspector general appointed under section 3 or 8G of the 
Inspector General Act of 1978 (5 U.S.C. App.), is authorized--
            (1) to examine any records of the contractor or 
        grantee, any of its subcontractors or subgrantees, or 
        any State or local agency administering such contract, 
        that pertain to, and involve transactions relating to, 
        the contract, subcontract, grant, or subgrant; and
            (2) to interview any officer or employee of the 
        contractor, grantee, subgrantee, or agency regarding 
        such transactions.
    (b) Relationship to Existing Authority.--Nothing in this 
section shall be interpreted to limit or restrict in any way 
any existing authority of an inspector general.

       Subtitle B--Recovery Accountability and Transparency Board

SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND 
                    TRANSPARENCY BOARD.

    There is established the Recovery Accountability and 
Transparency Board to coordinate and conduct oversight of 
covered funds to prevent fraud, waste, and abuse.

SEC. 1522. COMPOSITION OF BOARD.

    (a) Chairperson.--
            (1) Designation or appointment.--The President 
        shall--
                    (A) designate the Deputy Director for 
                Management of the Office of Management and 
                Budget to serve as Chairperson of the Board;
                    (B) designate another Federal officer who 
                was appointed by the President to a position 
                that required the advice and consent of the 
                Senate, to serve as Chairperson of the Board; 
                or
                    (C) appoint an individual as the 
                Chairperson of the Board, by and with the 
                advice and consent of the Senate.
            (2) Compensation.--
                    (A) Designation of federal officer.--If the 
                President designates a Federal officer under 
                paragraph (1)(A) or (B) to serve as 
                Chairperson, that Federal officer may not 
                receive additional compensation for services 
                performed as Chairperson.
                    (B) Appointment of non-federal officer.--If 
                the President appoints an individual as 
                Chairperson under paragraph (1)(C), that 
                individual shall be compensated at the rate of 
                basic pay prescribed for level IV of the 
                Executive Schedule under section 5315 of title 
                5, United States Code.
    (b) Members.--The members of the Board shall include--
            (1) the Inspectors General of the Departments of 
        Agriculture, Commerce, Education, Energy, Health and 
        Human Services, Homeland Security, Justice, 
        Transportation, Treasury, and the Treasury Inspector 
        General for Tax Administration; and
            (2) any other Inspector General as designated by 
        the President from any agency that expends or obligates 
        covered funds.

SEC. 1523. FUNCTIONS OF THE BOARD.

    (a) Functions.--
            (1) In general.--The Board shall coordinate and 
        conduct oversight of covered funds in order to prevent 
        fraud, waste, and abuse.
            (2) Specific functions.--The functions of the Board 
        shall include--
                    (A) reviewing whether the reporting of 
                contracts and grants using covered funds meets 
                applicable standards and specifies the purpose 
                of the contract or grant and measures of 
                performance;
                    (B) reviewing whether competition 
                requirements applicable to contracts and grants 
                using covered funds have been satisfied;
                    (C) auditing or reviewing covered funds to 
                determine whether wasteful spending, poor 
                contract or grant management, or other abuses 
                are occurring and referring matters it 
                considers appropriate for investigation to the 
                inspector general for the agency that disbursed 
                the covered funds;
                    (D) reviewing whether there are sufficient 
                qualified acquisition and grant personnel 
                overseeing covered funds;
                    (E) reviewing whether personnel whose 
                duties involve acquisitions or grants made with 
                covered funds receive adequate training; and
                    (F) reviewing whether there are appropriate 
                mechanisms for interagency collaboration 
                relating to covered funds, including 
                coordinating and collaborating to the extent 
                practicable with the Inspectors General Council 
                on Integrity and Efficiency established by the 
                Inspector General Reform Act of 2008 (Public 
                Law 110-409).
    (b) Reports.--
            (1) Flash and other reports.--The Board shall 
        submit to the President and Congress, including the 
        Committees on Appropriations of the Senate and House of 
        Representatives, reports, to be known as ``flash 
        reports'', on potential management and funding problems 
        that require immediate attention. The Board also shall 
        submit to Congress such other reports as the Board 
        considers appropriate on the use and benefits of funds 
        made available in this Act.
            (2) Quarterly reports.--The Board shall submit 
        quarterly reports to the President and Congress, 
        including the Committees on Appropriations of the 
        Senate and House of Representatives, summarizing the 
        findings of the Board and the findings of inspectors 
        general of agencies. The Board may submit additional 
        reports as appropriate.
            (3) Annual reports.--The Board shall submit annual 
        reports to the President and Congress, including the 
        Committees on Appropriations of the Senate and House of 
        Representatives, consolidating applicable quarterly 
        reports on the use of covered funds.
            (4) Public availability.--
                    (A) In general.--All reports submitted 
                under this subsection shall be made publicly 
                available and posted on the website established 
                by section 1526.
                    (B) Redactions.--Any portion of a report 
                submitted under this subsection may be redacted 
                when made publicly available, if that portion 
                would disclose information that is not subject 
                to disclosure under sections 552 and 552a of 
                title 5, United States Code.
    (c) Recommendations.--
            (1) In general.--The Board shall make 
        recommendations to agencies on measures to prevent 
        fraud, waste, and abuse relating to covered funds.
            (2) Responsive reports.--Not later than 30 days 
        after receipt of a recommendation under paragraph (1), 
        an agency shall submit a report to the President, the 
        congressional committees of jurisdiction, including the 
        Committees on Appropriations of the Senate and House of 
        Representatives, and the Board on--
                    (A) whether the agency agrees or disagrees 
                with the recommendations; and
                    (B) any actions the agency will take to 
                implement the recommendations.

SEC. 1524. POWERS OF THE BOARD.

    (a) In General.--The Board shall conduct audits and reviews 
of spending of covered funds and coordinate on such activities 
with the inspectors general of the relevant agency to avoid 
duplication and overlap of work.
    (b) Audits and Reviews.--The Board may--
            (1) conduct its own independent audits and reviews 
        relating to covered funds; and
            (2) collaborate on audits and reviews relating to 
        covered funds with any inspector general of an agency.
    (c) Authorities.--
            (1) Audits and reviews.--In conducting audits and 
        reviews, the Board shall have the authorities provided 
        under section 6 of the Inspector General Act of 1978 (5 
        U.S.C. App.). Additionally, the Board may issue 
        subpoenas to compel the testimony of persons who are 
        not Federal officers or employees and may enforce such 
        subpoenas in the same manner as provided for inspector 
        general subpoenas under section 6 of the Inspector 
        General Act of 1978 (5 U.S.C. App.).
            (2) Standards and guidelines.--The Board shall 
        carry out the powers under subsections (a) and (b) in 
        accordance with section 4(b)(1) of the Inspector 
        General Act of 1978 (5 U.S.C. App.).
    (d) Public Hearings.--The Board may hold public hearings 
and Board personnel may conduct necessary inquiries. The head 
of each agency shall make all officers and employees of that 
agency available to provide testimony to the Board and Board 
personnel. The Board may issue subpoenas to compel the 
testimony of persons who are not Federal officers or employees 
at such public hearings. Any such subpoenas may be enforced in 
the same manner as provided for inspector general subpoenas 
under section 6 of the Inspector General Act of 1978 (5 U.S.C. 
App.).
    (e) Contracts.--The Board may enter into contracts to 
enable the Board to discharge its duties under this subtitle, 
including contracts and other arrangements for audits, studies, 
analyses, and other services with public agencies and with 
private persons, and make such payments as may be necessary to 
carry out the duties of the Board.
    (f) Transfer of Funds.--The Board may transfer funds 
appropriated to the Board for expenses to support 
administrative support services and audits, reviews, or other 
activities related to oversight by the Board of covered funds 
to any office of inspector general, the Office of Management 
and Budget, the General Services Administration, and the Panel.

SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.

    (a) Employment and Personnel Authorities.--
            (1) In general.--
                    (A) Authorities.--Subject to paragraph (2), 
                the Board may exercise the authorities of 
                subsections (b) through (i) of section 3161 of 
                title 5, United States Code (without regard to 
                subsection (a) of that section).
                    (B) Application.--For purposes of 
                exercising the authorities described under 
                subparagraph (A), the term ``Chairperson of the 
                Board'' shall be substituted for the term 
                ``head of a temporary organization''.
                    (C) Consultation.--In exercising the 
                authorities described under subparagraph (A), 
                the Chairperson shall consult with members of 
                the Board.
            (2) Employment authorities.--In exercising the 
        employment authorities under subsection (b) of section 
        3161 of title 5, United States Code, as provided under 
        paragraph (1) of this subsection--
                    (A) paragraph (2) of subsection (b) of 
                section 3161 of that title (relating to periods 
                of appointments) shall not apply; and
                    (B) no period of appointment may exceed the 
                date on which the Board terminates under 
                section 1530.
    (b) Information and Assistance.--
            (1) In general.--Upon request of the Board for 
        information or assistance from any agency or other 
        entity of the Federal Government, the head of such 
        entity shall, insofar as is practicable and not in 
        contravention of any existing law, furnish such 
        information or assistance to the Board, or an 
        authorized designee.
            (2) Report of refusals.--Whenever information or 
        assistance requested by the Board is, in the judgment 
        of the Board, unreasonably refused or not provided, the 
        Board shall report the circumstances to the 
        congressional committees of jurisdiction, including the 
        Committees on Appropriations of the Senate and House of 
        Representatives, without delay.
    (c) Administrative Support.--The General Services 
Administration shall provide the Board with administrative 
support services, including the provision of office space and 
facilities.

SEC. 1526. BOARD WEBSITE.

    (a) Establishment.--The Board shall establish and maintain, 
no later than 30 days after enactment of this Act, a user-
friendly, public-facing website to foster greater 
accountability and transparency in the use of covered funds.
    (b) Purpose.--The website established and maintained under 
subsection (a) shall be a portal or gateway to key information 
relating to this Act and provide connections to other 
Government websites with related information.
    (c) Content and Function.--In establishing the website 
established and maintained under subsection (a), the Board 
shall ensure the following:
            (1) The website shall provide materials explaining 
        what this Act means for citizens. The materials shall 
        be easy to understand and regularly updated.
            (2) The website shall provide accountability 
        information, including findings from audits, inspectors 
        general, and the Government Accountability Office.
            (3) The website shall provide data on relevant 
        economic, financial, grant, and contract information in 
        user-friendly visual presentations to enhance public 
        awareness of the use of covered funds.
            (4) The website shall provide detailed data on 
        contracts awarded by the Federal Government that expend 
        covered funds, including information about the 
        competitiveness of the contracting process, information 
        about the process that was used for the award of 
        contracts, and for contracts over $500,000 a summary of 
        the contract.
            (5) The website shall include printable reports on 
        covered funds obligated by month to each State and 
        congressional district.
            (6) The website shall provide a means for the 
        public to give feedback on the performance of contracts 
        that expend covered funds.
            (7) The website shall include detailed information 
        on Federal Government contracts and grants that expend 
        covered funds, to include the data elements required to 
        comply with the Federal Funding Accountability and 
        Transparency Act of 2006 (Public Law 109-282), allowing 
        aggregate reporting on awards below $25,000 or to 
        individuals, as prescribed by the Director of the 
        Office of Management and Budget.
            (8) The website shall provide a link to estimates 
        of the jobs sustained or created by the Act.
            (9) The website shall provide a link to information 
        about announcements of grant competitions and 
        solicitations for contracts to be awarded.
            (10) The website shall include appropriate links to 
        other government websites with information concerning 
        covered funds, including Federal agency and State 
        websites.
            (11) The website shall include a plan from each 
        Federal agency for using funds made available in this 
        Act to the agency.
            (12) The website shall provide information on 
        Federal allocations of formula grants and awards of 
        competitive grants using covered funds.
            (13) The website shall provide information on 
        Federal allocations of mandatory and other entitlement 
        programs by State, county, or other appropriate 
        geographical unit.
            (14) To the extent practical, the website shall 
        provide, organized by the location of the job 
        opportunities involved, links to and information about 
        how to access job opportunities, including, if 
        possible, links to or information about local 
        employment agencies, job banks operated by State 
        workforce agencies, the Department of Labor's 
        CareerOneStop website, State, local and other public 
        agencies receiving Federal funding, and private firms 
        contracted to perform work with Federal funding, in 
        order to direct job seekers to job opportunities 
        created by this Act.
            (15) The website shall be enhanced and updated as 
        necessary to carry out the purposes of this subtitle.
    (d) Waiver.--The Board may exclude posting contractual or 
other information on the website on a case-by-case basis when 
necessary to protect national security or to protect 
information that is not subject to disclosure under sections 
552 and 552a of title 5, United States Code.

SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL.

    (a) Independent Authority.--Nothing in this subtitle shall 
affect the independent authority of an inspector general to 
determine whether to conduct an audit or investigation of 
covered funds.
    (b) Requests by Board.--If the Board requests that an 
inspector general conduct or refrain from conducting an audit 
or investigation and the inspector general rejects the request 
in whole or in part, the inspector general shall, not later 
than 30 days after rejecting the request, submit a report to 
the Board, the head of the applicable agency, and the 
congressional committees of jurisdiction, including the 
Committees on Appropriations of the Senate and House of 
Representatives. The report shall state the reasons that the 
inspector general has rejected the request in whole or in part. 
The inspector general's decision shall be final.

SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE 
                    AUDITORS.

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

SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as 
necessary to carry out this subtitle.

SEC. 1530. TERMINATION OF THE BOARD.

    The Board shall terminate on September 30, 2013.

            Subtitle C--Recovery Independent Advisory Panel

SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.

    (a) Establishment.--There is established the Recovery 
Independent Advisory Panel.
    (b) Membership.--The Panel shall be composed of 5 members 
who shall be appointed by the President.
    (c) Qualifications.--Members shall be appointed on the 
basis of expertise in economics, public finance, contracting, 
accounting, or any other relevant field.
    (d) Initial Meeting.--Not later than 30 days after the date 
on which all members of the Panel have been appointed, the 
Panel shall hold its first meeting.
    (e) Meetings.--The Panel shall meet at the call of the 
Chairperson of the Panel.
    (f) Quorum.--A majority of the members of the Panel shall 
constitute a quorum, but a lesser number of members may hold 
hearings.
    (g) Chairperson and Vice Chairperson.--The Panel shall 
select a Chairperson and Vice Chairperson from among its 
members.

SEC. 1542. DUTIES OF THE PANEL.

    The Panel shall make recommendations to the Board on 
actions the Board could take to prevent fraud, waste, and abuse 
relating to covered funds.

SEC. 1543. POWERS OF THE PANEL.

    (a) Hearings.--The Panel may hold such hearings, sit and 
act at such times and places, take such testimony, and receive 
such evidence as the Panel considers advisable to carry out 
this subtitle.
    (b) Information From Federal Agencies.--The Panel may 
secure directly from any agency such information as the Panel 
considers necessary to carry out this subtitle. Upon request of 
the Chairperson of the Panel, the head of such agency shall 
furnish such information to the Panel.
    (c) Postal Services.--The Panel may use the United States 
mails in the same manner and under the same conditions as 
agencies of the Federal Government.
    (d) Gifts.--The Panel may accept, use, and dispose of gifts 
or donations of services or property.

SEC. 1544. PANEL PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Panel who 
is not an officer or employee of the Federal Government shall 
be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the performance of the duties of the 
Panel. All members of the Panel who are officers or employees 
of the United States shall serve without compensation in 
addition to that received for their services as officers or 
employees of the United States.
    (b) Travel Expenses.--The members of the Panel shall be 
allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the Panel.
    (c) Staff.--
            (1) In general.--The Chairperson of the Panel may, 
        without regard to the civil service laws and 
        regulations, appoint and terminate an executive 
        director and such other additional personnel as may be 
        necessary to enable the Panel to perform its duties. 
        The employment of an executive director shall be 
        subject to confirmation by the Panel.
            (2) Compensation.--The Chairperson of the Panel may 
        fix the compensation of the executive director and 
        other personnel without regard to chapter 51 and 
        subchapter III of chapter 53 of title 5, United States 
        Code, relating to classification of positions and 
        General Schedule pay rates, except that the rate of pay 
        for the executive director and other personnel may not 
        exceed the rate payable for level V of the Executive 
        Schedule under section 5316 of such title.
            (3) Personnel as federal employees.--
                    (A) In general.--The executive director and 
                any personnel of the Panel who are employees 
                shall be employees under section 2105 of title 
                5, United States Code, for purposes of chapters 
                63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of 
                that title.
                    (B) Members of panel.--Subparagraph (A) 
                shall not be construed to apply to members of 
                the Panel.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Panel without reimbursement, 
and such detail shall be without interruption or loss of civil 
service status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--
The Chairperson of the Panel may procure temporary and 
intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals which do not exceed the 
daily equivalent of the annual rate of basic pay prescribed for 
level V of the Executive Schedule under section 5316 of such 
title.
    (f) Administrative Support.--The General Services 
Administration shall provide the Panel with administrative 
support services, including the provision of office space and 
facilities.

SEC. 1545. TERMINATION OF THE PANEL.

    The Panel shall terminate on September 30, 2013.

SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as 
necessary to carry out this subtitle.

  Subtitle D--Additional Accountability and Transparency Requirements

SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.

    Although this Act provides supplemental appropriations for 
programs, projects, and activities in existing Treasury 
accounts, to facilitate tracking these funds through Treasury 
and agency accounting systems, the Secretary of the Treasury 
shall ensure that all funds appropriated in this Act shall be 
established in separate Treasury accounts, unless a waiver from 
this provision is approved by the Director of the Office of 
Management and Budget.

SEC. 1552. SET-ASIDE FOR STATE AND LOCAL GOVERNMENT REPORTING AND 
                    RECORDKEEPING.

    Federal agencies receiving funds under this Act, may, after 
following the notice and comment rulemaking requirements under 
the Administrative Procedures Act (5 U.S.C. 500), reasonably 
adjust applicable limits on administrative expenditures for 
Federal awards to help award recipients defray the costs of 
data collection requirements initiated pursuant to this Act.

SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR 
                    WHISTLEBLOWERS.

    (a) Prohibition of Reprisals.--An employee of any non-
Federal employer receiving covered funds may not be discharged, 
demoted, or otherwise discriminated against as a reprisal for 
disclosing, including a disclosure made in the ordinary course 
of an employee's duties, to the Board, an inspector general, 
the Comptroller General, a member of Congress, a State or 
Federal regulatory or law enforcement agency, a person with 
supervisory authority over the employee (or such other person 
working for the employer who has the authority to investigate, 
discover, or terminate misconduct), a court or grand jury, the 
head of a Federal agency, or their representatives, information 
that the employee reasonably believes is evidence of--
            (1) gross mismanagement of an agency contract or 
        grant relating to covered funds;
            (2) a gross waste of covered funds;
            (3) a substantial and specific danger to public 
        health or safety related to the implementation or use 
        of covered funds;
            (4) an abuse of authority related to the 
        implementation or use of covered funds; or
            (5) a violation of law, rule, or regulation related 
        to an agency contract (including the competition for or 
        negotiation of a contract) or grant, awarded or issued 
        relating to covered funds.
    (b) Investigation of Complaints.--
            (1) In general.--A person who believes that the 
        person has been subjected to a reprisal prohibited by 
        subsection (a) may submit a complaint regarding the 
        reprisal to the appropriate inspector general. Except 
        as provided under paragraph (3), unless the inspector 
        general determines that the complaint is frivolous, 
        does not relate to covered funds, or another Federal or 
        State judicial or administrative proceeding has 
        previously been invoked to resolve such complaint, the 
        inspector general shall investigate the complaint and, 
        upon completion of such investigation, submit a report 
        of the findings of the investigation to the person, the 
        person's employer, the head of the appropriate agency, 
        and the Board.
            (2) Time limitations for actions.--
                    (A) In general.--Except as provided under 
                subparagraph (B), the inspector general shall, 
                not later than 180 days after receiving a 
                complaint under paragraph (1)--
                            (i) make a determination that the 
                        complaint is frivolous, does not relate 
                        to covered funds, or another Federal or 
                        State judicial or administrative 
                        proceeding has previously been invoked 
                        to resolve such complaint; or
                            (ii) submit a report under 
                        paragraph (1).
                    (B) Extensions.--
                            (i) Voluntary extension agreed to 
                        between inspector general and 
                        complainant.--If the inspector general 
                        is unable to complete an investigation 
                        under this section in time to submit a 
                        report within the 180-day period 
                        specified under subparagraph (A) and 
                        the person submitting the complaint 
                        agrees to an extension of time, the 
                        inspector general shall submit a report 
                        under paragraph (1) within such 
                        additional period of time as shall be 
                        agreed upon between the inspector 
                        general and the person submitting the 
                        complaint.
                            (ii) Extension granted by inspector 
                        general.--If the inspector general is 
                        unable to complete an investigation 
                        under this section in time to submit a 
                        report within the 180-day period 
                        specified under subparagraph (A), the 
                        inspector general may extend the period 
                        for not more than 180 days without 
                        agreeing with the person submitting the 
                        complaint to such extension, provided 
                        that the inspector general provides a 
                        written explanation (subject to the 
                        authority to exclude information under 
                        paragraph (4)(C)) for the decision, 
                        which shall be provided to both the 
                        person submitting the complaint and the 
                        non-Federal employer.
                            (iii) Semi-annual report on 
                        extensions.--The inspector general 
                        shall include in semi-annual reports to 
                        Congress a list of those investigations 
                        for which the inspector general 
                        received an extension.
            (3) Discretion not to investigate complaints.--
                    (A) In general.--The inspector general may 
                decide not to conduct or continue an 
                investigation under this section upon providing 
                to the person submitting the complaint and the 
                non-Federal employer a written explanation 
                (subject to the authority to exclude 
                information under paragraph (4)(C)) for such 
                decision.
                    (B) Assumption of rights to civil remedy.--
                Upon receipt of an explanation of a decision 
                not to conduct or continue an investigation 
                under subparagraph (A), the person submitting a 
                complaint shall immediately assume the right to 
                a civil remedy under subsection (c)(3) as if 
                the 210-day period specified under such 
                subsection has already passed.
                    (C) Semi-annual report.--The inspector 
                general shall include in semi-annual reports to 
                Congress a list of those investigations the 
                inspector general decided not to conduct or 
                continue under this paragraph.
            (4) Access to investigative file of inspector 
        general.--
                    (A) In general.--The person alleging a 
                reprisal under this section shall have access 
                to the investigation file of the appropriate 
                inspector general in accordance with section 
                552a of title 5, United States Code (commonly 
                referred to as the ``Privacy Act''). The 
                investigation of the inspector general shall be 
                deemed closed for purposes of disclosure under 
                such section when an employee files an appeal 
                to an agency head or a court of competent 
                jurisdiction.
                    (B) Civil action.--In the event the person 
                alleging the reprisal brings suit under 
                subsection (c)(3), the person alleging the 
                reprisal and the non-Federal employer shall 
                have access to the investigative file of the 
                inspector general in accordance with the 
                Privacy Act.
                    (C) Exception.--The inspector general may 
                exclude from disclosure--
                            (i) information protected from 
                        disclosure by a provision of law; and
                            (ii) any additional information the 
                        inspector general determines disclosure 
                        of which would impede a continuing 
                        investigation, provided that such 
                        information is disclosed once such 
                        disclosure would no longer impede such 
                        investigation, unless the inspector 
                        general determines that disclosure of 
                        law enforcement techniques, procedures, 
                        or information could reasonably be 
                        expected to risk circumvention of the 
                        law or disclose the identity of a 
                        confidential source.
            (5) Privacy of information.--An inspector general 
        investigating an alleged reprisal under this section 
        may not respond to any inquiry or disclose any 
        information from or about any person alleging such 
        reprisal, except in accordance with the provisions of 
        section 552a of title 5, United States Code, or as 
        required by any other applicable Federal law.
    (c) Remedy and Enforcement Authority.--
            (1) Burden of proof.--
                    (A) Disclosure as contributing factor in 
                reprisal.--
                            (i) In general.--A person alleging 
                        a reprisal under this section shall be 
                        deemed to have affirmatively 
                        established the occurrence of the 
                        reprisal if the person demonstrates 
                        that a disclosure described in 
                        subsection (a) was a contributing 
                        factor in the reprisal.
                            (ii) Use of circumstantial 
                        evidence.--A disclosure may be 
                        demonstrated as a contributing factor 
                        in a reprisal for purposes of this 
                        paragraph by circumstantial evidence, 
                        including--
                                    (I) evidence that the 
                                official undertaking the 
                                reprisal knew of the 
                                disclosure; or
                                    (II) evidence that the 
                                reprisal occurred within a 
                                period of time after the 
                                disclosure such that a 
                                reasonable person could 
                                conclude that the disclosure 
                                was a contributing factor in 
                                the reprisal.
                    (B) Opportunity for rebuttal.--The head of 
                an agency may not find the occurrence of a 
                reprisal with respect to a reprisal that is 
                affirmatively established under subparagraph 
                (A) if the non-Federal employer demonstrates by 
                clear and convincing evidence that the non-
                Federal employer would have taken the action 
                constituting the reprisal in the absence of the 
                disclosure.
            (2) Agency action.--Not later than 30 days after 
        receiving an inspector general report under subsection 
        (b), the head of the agency concerned shall determine 
        whether there is sufficient basis to conclude that the 
        non-Federal employer has subjected the complainant to a 
        reprisal prohibited by subsection (a) and shall either 
        issue an order denying relief in whole or in part or 
        shall take 1 or more of the following actions:
                    (A) Order the employer to take affirmative 
                action to abate the reprisal.
                    (B) Order the employer to reinstate the 
                person to the position that the person held 
                before the reprisal, together with the 
                compensation (including back pay), compensatory 
                damages, employment benefits, and other terms 
                and conditions of employment that would apply 
                to the person in that position if the reprisal 
                had not been taken.
                    (C) Order the employer to pay the 
                complainant an amount equal to the aggregate 
                amount of all costs and expenses (including 
                attorneys' fees and expert witnesses' fees) 
                that were reasonably incurred by the 
                complainant for, or in connection with, 
                bringing the complaint regarding the reprisal, 
                as determined by the head of the agency or a 
                court of competent jurisdiction.
            (3) Civil action.--If the head of an agency issues 
        an order denying relief in whole or in part under 
        paragraph (1), has not issued an order within 210 days 
        after the submission of a complaint under subsection 
        (b), or in the case of an extension of time under 
        subsection (b)(2)(B)(i), within 30 days after the 
        expiration of the extension of time, or decides under 
        subsection (b)(3) not to investigate or to discontinue 
        an investigation, and there is no showing that such 
        delay or decision is due to the bad faith of the 
        complainant, the complainant shall be deemed to have 
        exhausted all administrative remedies with respect to 
        the complaint, and the complainant may bring a de novo 
        action at law or equity against the employer to seek 
        compensatory damages and other relief available under 
        this section in the appropriate district court of the 
        United States, which shall have jurisdiction over such 
        an action without regard to the amount in controversy. 
        Such an action shall, at the request of either party to 
        the action, be tried by the court with a jury.
            (4) Judicial enforcement of order.--Whenever a 
        person fails to comply with an order issued under 
        paragraph (2), the head of the agency shall file an 
        action for enforcement of such order in the United 
        States district court for a district in which the 
        reprisal was found to have occurred. In any action 
        brought under this paragraph, the court may grant 
        appropriate relief, including injunctive relief, 
        compensatory and exemplary damages, and attorneys fees 
        and costs.
            (5) Judicial review.--Any person adversely affected 
        or aggrieved by an order issued under paragraph (2) may 
        obtain review of the order's conformance with this 
        subsection, and any regulations issued to carry out 
        this section, in the United States court of appeals for 
        a circuit in which the reprisal is alleged in the order 
        to have occurred. No petition seeking such review may 
        be filed more than 60 days after issuance of the order 
        by the head of the agency. Review shall conform to 
        chapter 7 of title 5, United States Code.
    (d) Nonenforceability of Certain Provisions Waiving Rights 
and Remedies or Requiring Arbitration of Disputes.--
            (1) Waiver of rights and remedies.--Except as 
        provided under paragraph (3), the rights and remedies 
        provided for in this section may not be waived by any 
        agreement, policy, form, or condition of employment, 
        including by any predispute arbitration agreement.
            (2) Predispute arbitration agreements.--Except as 
        provided under paragraph (3), no predispute arbitration 
        agreement shall be valid or enforceable if it requires 
        arbitration of a dispute arising under this section.
            (3) Exception for collective bargaining 
        agreements.--Notwithstanding paragraphs (1) and (2), an 
        arbitration provision in a collective bargaining 
        agreement shall be enforceable as to disputes arising 
        under the collective bargaining agreement.
    (e) Requirement to Post Notice of Rights and Remedies.--Any 
employer receiving covered funds shall post notice of the 
rights and remedies provided under this section.
    (f) Rules of Construction.--
            (1) No implied authority to retaliate for non-
        protected disclosures.--Nothing in this section may be 
        construed to authorize the discharge of, demotion of, 
        or discrimination against an employee for a disclosure 
        other than a disclosure protected by subsection (a) or 
        to modify or derogate from a right or remedy otherwise 
        available to the employee.
            (2) Relationship to state laws.--Nothing may be 
        construed to preempt, preclude, or limit the 
        protections provided for public or private employees 
        under State whistleblower laws.
    (g) Definitions.--In this section:
            (1) Abuse of authority.--The term ``abuse of 
        authority'' means an arbitrary and capricious exercise 
        of authority by a contracting official or employee that 
        adversely affects the rights of any person, or that 
        results in personal gain or advantage to the official 
        or employee or to preferred other persons.
            (2) Covered funds.--The term ``covered funds'' 
        means any contract, grant, or other payment received by 
        any non-Federal employer if--
                    (A) the Federal Government provides any 
                portion of the money or property that is 
                provided, requested, or demanded; and
                    (B) at least some of the funds are 
                appropriated or otherwise made available by 
                this Act.
            (3) Employee.--The term ``employee''--
                    (A) except as provided under subparagraph 
                (B), means an individual performing services on 
                behalf of an employer; and
                    (B) does not include any Federal employee 
                or member of the uniformed services (as that 
                term is defined in section 101(a)(5) of title 
                10, United States Code).
            (4) Non-federal employer.--The term ``non-Federal 
        employer''--
                    (A) means any employer--
                            (i) with respect to covered funds--
                                    (I) the contractor, 
                                subcontractor, grantee, or 
                                recipient, as the case may be, 
                                if the contractor, 
                                subcontractor, grantee, or 
                                recipient is an employer; and
                                    (II) any professional 
                                membership organization, 
                                certification or other 
                                professional body, any agent or 
                                licensee of the Federal 
                                government, or any person 
                                acting directly or indirectly 
                                in the interest of an employer 
                                receiving covered funds; or
                            (ii) with respect to covered funds 
                        received by a State or local 
                        government, the State or local 
                        government receiving the funds and any 
                        contractor or subcontractor of the 
                        State or local government; and
                    (B) does not mean any department, agency, 
                or other entity of the Federal Government.
            (5) State or local government.--The term ``State or 
        local government'' means--
                    (A) the government of each of the several 
                States, the District of Columbia, the 
                Commonwealth of Puerto Rico, Guam, American 
                Samoa, the Virgin Islands, the Commonwealth of 
                the Northern Mariana Islands, or any other 
                territory or possession of the United States; 
                or
                    (B) the government of any political 
                subdivision of a government listed in 
                subparagraph (A).

SEC. 1554. SPECIAL CONTRACTING PROVISIONS.

    To the maximum extent possible, contracts funded under this 
Act shall be awarded as fixed-price contracts through the use 
of competitive procedures. A summary of any contract awarded 
with such funds that is not fixed-price and not awarded using 
competitive procedures shall be posted in a special section of 
the website established in section 1526.

                TITLE XVI--GENERAL PROVISIONS--THIS ACT

                  RELATIONSHIP TO OTHER APPROPRIATIONS

    Sec. 1601.  Each amount appropriated or made available in 
this Act is in addition to amounts otherwise appropriated for 
the fiscal year involved. Enactment of this Act shall have no 
effect on the availability of amounts under the Continuing 
Appropriations Resolution, 2009 (division A of Public Law 110-
329).

                 PREFERENCE FOR QUICK-START ACTIVITIES

    Sec. 1602. In using funds made available in this Act for 
infrastructure investment, recipients shall give preference to 
activities that can be started and completed expeditiously, 
including a goal of using at least 50 percent of the funds for 
activities that can be initiated not later than 120 days after 
the date of the enactment of this Act. Recipients shall also 
use grant funds in a manner that maximizes job creation and 
economic benefit.

                         PERIOD OF AVAILABILITY

    Sec. 1603. All funds appropriated in this Act shall remain 
available for obligation until September 30, 2010, unless 
expressly provided otherwise in this Act.

                             LIMIT ON FUNDS

    Sec. 1604. None of the funds appropriated or otherwise made 
available in this Act may be used by any State or local 
government, or any private entity, for any casino or other 
gambling establishment, aquarium, zoo, golf course, or swimming 
pool.

                              BUY AMERICAN

    Sec. 1605.  Use of American Iron, Steel, and Manufactured 
Goods. (a) None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the 
construction, alteration, maintenance, or repair of a public 
building or public work unless all of the iron, steel, and 
manufactured goods used in the project are produced in the 
United States.
    (b) Subsection (a) shall not apply in any case or category 
of cases in which the head of the Federal department or agency 
involved finds that--
            (1) applying subsection (a) would be inconsistent 
        with the public interest;
            (2) iron, steel, and the relevant manufactured 
        goods are not produced in the United States in 
        sufficient and reasonably available quantities and of a 
        satisfactory quality; or
            (3) inclusion of iron, steel, and manufactured 
        goods produced in the United States will increase the 
        cost of the overall project by more than 25 percent.
    (c) If the head of a Federal department or agency 
determines that it is necessary to waive the application of 
subsection (a) based on a finding under subsection (b), the 
head of the department or agency shall publish in the Federal 
Register a detailed written justification as to why the 
provision is being waived.
    (d) This section shall be applied in a manner consistent 
with United States obligations under international agreements.

                         WAGE RATE REQUIREMENTS

    Sec. 1606. Notwithstanding any other provision of law and 
in a manner consistent with other provisions in this Act, all 
laborers and mechanics employed by contractors and 
subcontractors on projects funded directly by or assisted in 
whole or in part by and through the Federal Government pursuant 
to this Act shall be paid wages at rates not less than those 
prevailing on projects of a character similar in the locality 
as determined by the Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code. 
With respect to the labor standards specified in this section, 
the Secretary of Labor shall have the authority and functions 
set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
1267; 5 U.S.C. App.) and section 3145 of title 40, United 
States Code.

  ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF 
                                 FUNDS

    Sec. 1607. (a) Certification by Governor.--Not later than 
45 days after the date of enactment of this Act, for funds 
provided to any State or agency thereof, the Governor of the 
State shall certify that: (1) the State will request and use 
funds provided by this Act; and (2) the funds will be used to 
create jobs and promote economic growth.
    (b) Acceptance by State Legislature.--If funds provided to 
any State in any division of this Act are not accepted for use 
by the Governor, then acceptance by the State legislature, by 
means of the adoption of a concurrent resolution, shall be 
sufficient to provide funding to such State.
    (c) Distribution.--After the adoption of a State 
legislature's concurrent resolution, funding to the State will 
be for distribution to local governments, councils of 
government, public entities, and public-private entities within 
the State either by formula or at the State's discretion.

                   ECONOMIC STABILIZATION CONTRACTING

    Sec. 1608. Reform of Contracting Procedures Under EESA.--
Section 107(b) of the Emergency Economic Stabilization Act of 
2008 (12 U.S.C. 5217(b)) is amended by inserting ``and 
individuals with disabilities and businesses owned by 
individuals with disabilities (for purposes of this subsection 
the term `individual with disability' has the same meaning as 
the term `handicapped individual' as that term is defined in 
section 3(f) of the Small Business Act (15 U.S.C. 632(f)),'' 
after ``(12 U.S.C. 1441a(r)(4)),''.
    Sec. 1609. (a) Findings.--
            (1) The National Environmental Policy Act protects 
        public health, safety and environmental quality: by 
        ensuring transparency, accountability and public 
        involvement in federal actions and in the use of public 
        funds;
            (2) When President Nixon signed the National 
        Environmental Policy Act into law on January 1, 1970, 
        he said that the Act provided the ``direction'' for the 
        country to ``regain a productive harmony between man 
        and nature'';
            (3) The National Environmental Policy Act helps to 
        provide an orderly process for considering federal 
        actions and funding decisions and prevents ligation and 
        delay that would otherwise be inevitable and existed 
        prior to the establishment of the National 
        Environmental Policy Act.
    (b) Adequate resources within this bill must be devoted to 
ensuring that applicable environmental reviews under the 
National Environmental Policy Act are completed on an 
expeditious basis and that the shortest existing applicable 
process under the National Environmental Policy Act shall be 
utilized.
    (c) The President shall report to the Senate Environment 
and Public Works Committee and the House Natural Resources 
Committee every 90 days following the date of enactment until 
September 30, 2011 on the status and progress of projects and 
activities funded by this Act with respect to compliance with 
National Environmental Policy Act requirements and 
documentation.
    Sec. 1610. (a) None of the funds appropriated or otherwise 
made available by this Act, for projects initiated after the 
effective date of this Act, may be used by an executive agency 
to enter into any Federal contract unless such contract is 
entered into in accordance with the Federal Property and 
Administrative Services Act (41 U.S.C. 253) or chapter 137 of 
title 10, United States Code, and the Federal Acquisition 
Regulation, unless such contract is otherwise authorized by 
statute to be entered into without regard to the above 
referenced statutes.
    (b) All projects to be conducted under the authority of the 
Indian Self-Determination and Education Assistance Act, the 
Tribally-Controlled Schools Act, the Sanitation and Facilities 
Act, the Native American Housing and Self-Determination 
Assistance Act and the Buy-Indian Act shall be identified by 
the appropriate Secretary and the appropriate Secretary shall 
incorporate provisions to ensure that the agreement conforms 
with the provisions of this Act regarding the timing for use of 
funds and transparency, oversight, reporting, and 
accountability, including review by the Inspectors General, the 
Accountability and Transparency Board, and Government 
Accountability Office, consistent with the objectives of this 
Act.
    Sec. 1611. Hiring American Workers in Companies Receiving 
TARP Funding. (a) Short Title.--This section may be cited as 
the ``Employ American Workers Act''.
    (b) Prohibition.--
            (1) In general.--Notwithstanding any other 
        provision of law, it shall be unlawful for any 
        recipient of funding under title I of the Emergency 
        Economic Stabilization Act of 2008 (Public Law 110-343) 
        or section 13 of the Federal Reserve Act (12 U.S.C. 342 
        et seq.) to hire any nonimmigrant described in section 
        101(a)(15)(h)(i)(b) of the Immigration and Nationality 
        Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless the 
        recipient is in compliance with the requirements for an 
        H-1B dependent employer (as defined in section 
        212(n)(3) of such Act (8 U.S.C. 1182(n)(3))), except 
        that the second sentence of section 212(n)(1)(E)(ii) of 
        such Act shall not apply.
            (2) Defined term.--In this subsection, the term 
        ``hire'' means to permit a new employee to commence a 
        period of employment.
    (c) Sunset Provision.--This section shall be effective 
during the 2-year period beginning on the date of the enactment 
of this Act.
    Sec. 1612. During the current fiscal year not to exceed 1 
percent of any appropriation made available by this Act may be 
transferred by an agency head between such appropriations 
funded in this Act of that department or agency: Provided, That 
such appropriations shall be merged with and available for the 
same purposes, and for the same time period, as the 
appropriation to which transferred: Provided further, That the 
agency head shall notify the Committees on Appropriations of 
the Senate and House of Representatives of the transfer 15 days 
in advance: Provided further, That notice of any transfer made 
pursuant to this authority be posted on the website established 
by the Recovery Act Accountability and Transparency Board 15 
days following such transfer: Provided further, That the 
authority contained in this section is in addition to transfer 
authorities otherwise available under current law: Provided 
further, That the authority provided in this section shall not 
apply to any appropriation that is subject to transfer 
provisions included elsewhere in this Act.

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

                        TITLE I--TAX PROVISIONS

SEC. 1000. SHORT TITLE, ETC.

    (a) Short Title.--This title may be cited as the ``American 
Recovery and Reinvestment Tax Act of 2009''.
    (b) Reference.--Except as otherwise expressly provided, 
whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code of 
1986.
    (c) Table of Contents.--The table of contents for this 
title is as follows:

                         TITLE I--TAX PROVISIONS

Sec. 1000. Short title, etc.

           Subtitle A--Tax Relief for Individuals and Families

                       PART I--General Tax Relief

Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified 
          higher education expense for section 529 accounts in 2009 and 
          2010.
Sec. 1006. Extension of and increase in first-time homebuyer credit; 
          waiver of requirement to repay.
Sec. 1007. Suspension of tax on portion of unemployment compensation.
Sec. 1008. Additional deduction for State sales tax and excise tax on 
          the purchase of certain motor vehicles.

                 PART II--Alternative Minimum Tax Relief

Sec. 1011. Extension of alternative minimum tax relief for nonrefundable 
          personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption 
          amount.

                      Subtitle B--Energy Incentives

                   PART I--Renewable Energy Incentives

Sec. 1101. Extension of credit for electricity produced from certain 
          renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy 
          property.
Sec. 1104. Coordination with renewable energy grants.

 PART II--Increased Allocations of New Clean Renewable Energy Bonds and 
                   Qualified Energy Conservation Bonds

Sec. 1111. Increased limitation on issuance of new clean renewable 
          energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy 
          conservation bonds.

                PART III--Energy Conservation Incentives

Sec. 1121. Extension and modification of credit for nonbusiness energy 
          property.
Sec. 1122. Modification of credit for residential energy efficient 
          property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle 
          refueling property.

    PART IV--Modification of Credit for Carbon Dioxide Sequestration

Sec. 1131. Application of monitoring requirements to carbon dioxide used 
          as a tertiary injectant.

              PART V--Plug-in Electric Drive Motor Vehicles

Sec. 1141. Credit for new qualified plug-in electric drive motor 
          vehicles.
Sec. 1142. Credit for certain plug-in electric vehicles.
Sec. 1143. Conversion kits.
Sec. 1144. Treatment of alternative motor vehicle credit as a personal 
          credit allowed against AMT.

           PART VI--Parity for Transportation Fringe Benefits

Sec. 1151. Increased exclusion amount for commuter transit benefits and 
          transit passes.

                 Subtitle C--Tax Incentives for Business

                 PART I--Temporary Investment Incentives

Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain 
          depreciable business assets.

                   PART II--Small Business Provisions

Sec. 1211. 5-year carryback of operating losses of small businesses.
Sec. 1212. Decreased required estimated tax payments in 2009 for certain 
          small businesses.

                    PART III--Incentives for New Jobs

Sec. 1221. Incentives to hire unemployed veterans and disconnected 
          youth.

               PART IV--Rules Relating to Debt Instruments

Sec. 1231. Deferral and ratable inclusion of income arising from 
          business indebtedness discharged by the reacquisition of a 
          debt instrument.
Sec. 1232. Modifications of rules for original issue discount on certain 
          high yield obligations.

                 PART V--Qualified Small Business Stock

Sec. 1241. Special rules applicable to qualified small business stock 
          for 2009 and 2010.

                         PART VI--S Corporations

Sec. 1251. Temporary reduction in recognition period for built-in gains 
          tax.

              PART VII--Rules Relating to Ownership Changes

Sec. 1261. Clarification of regulations related to limitations on 
          certain built-in losses following an ownership change.
Sec. 1262. Treatment of certain ownership changes for purposes of 
          limitations on net operating loss carryforwards and certain 
          built-in losses.

              Subtitle D--Manufacturing Recovery Provisions

Sec. 1301. Temporary expansion of availability of industrial development 
          bonds to facilities manufacturing intangible property.
Sec. 1302. Credit for investment in advanced energy facilities.

                   Subtitle E--Economic Recovery Tools

Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Increase in new markets tax credit.
Sec. 1404. Coordination of low-income housing credit and low-income 
          housing grants.

               Subtitle F--Infrastructure Financing Tools

           PART I--Improved Marketability for Tax-Exempt Bonds

Sec. 1501. De minimis safe harbor exception for tax-exempt interest 
          expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt interest 
          expense allocation rules for financial institutions.
Sec. 1503. Temporary modification of alternative minimum tax limitations 
          on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.

     PART II--Delay in Application of Withholding Tax on Government 
                               Contractors

Sec. 1511. Delay in application of withholding tax on government 
          contractors.

                 PART III--Tax Credit Bonds for Schools

Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.

                      PART IV--Build America Bonds

Sec. 1531. Build America bonds.

 PART V--Regulated Investment Companies Allowed to Pass-Thru Tax Credit 
                              Bond Credits

Sec. 1541. Regulated investment companies allowed to pass-thru tax 
          credit bond credits.

                      Subtitle G--Other Provisions

Sec. 1601. Application of certain labor standards to projects financed 
          with certain tax-favored bonds.
Sec. 1602. Grants to States for low-income housing projects in lieu of 
          low-income housing credit allocations for 2009.
Sec. 1603. Grants for specified energy property in lieu of tax credits.
Sec. 1604. Increase in public debt limit.

Subtitle H--Prohibition on Collection of Certain Payments Made Under the 
            Continued Dumping and Subsidy Offset Act of 2000

Sec. 1701. Prohibition on collection of certain payments made under the 
          Continued Dumping and Subsidy Offset Act of 2000.

                 Subtitle I--Trade Adjustment Assistance

Sec. 1800. Short title.

             PART I--Trade Adjustment Assistance for Workers

    subpart a--trade adjustment assistance for service sector workers

Sec. 1801. Extension of trade adjustment assistance to service sector 
          and public agency workers; shifts in production.
Sec. 1802. Separate basis for certification.
Sec. 1803. Determinations by Secretary of Labor.
Sec. 1804. Monitoring and reporting relating to service sector.

    subpart b--industry notifications following certain affirmative 
                             determinations

Sec. 1811. Notifications following certain affirmative determinations.
Sec. 1812. Notification to Secretary of Commerce.

                       subpart c--program benefits

Sec. 1821. Qualifying Requirements for Workers.
Sec. 1822. Weekly amounts.
Sec. 1823. Limitations on trade readjustment allowances; allowances for 
          extended training and breaks in training.
Sec. 1824. Special rules for calculation of eligibility period.
Sec. 1825. Application of State laws and regulations on good cause for 
          waiver of time limits or late filing of claims.
Sec. 1826. Employment and case management services.
Sec. 1827. Administrative expenses and employment and case management 
          services.
Sec. 1828. Training funding.
Sec. 1829. Prerequisite education; approved training programs.
Sec. 1830. Pre-layoff and part-time training.
Sec. 1831. On-the-job training.
Sec. 1832. Eligibility for unemployment insurance and program benefits 
          while in training.
Sec. 1833. Job search and relocation allowances.

       subpart d--reemployment trade adjustment assistance program

Sec. 1841. Reemployment trade adjustment assistance program.

                        subpart e--other matters

Sec. 1851. Office of Trade Adjustment Assistance.
Sec. 1852. Accountability of State agencies; collection and publication 
          of program data; agreements with States.
Sec. 1853. Verification of eligibility for program benefits.
Sec. 1854. Collection of data and reports; information to workers.
Sec. 1855. Fraud and recovery of overpayments.
Sec. 1856. Sense of Congress on application of trade adjustment 
          assistance.
Sec. 1857. Consultations in promulgation of regulations.
Sec. 1858. Technical corrections.

             PART II--Trade Adjustment Assistance for Firms

Sec. 1861. Expansion to service sector firms.
Sec. 1862. Modification of requirements for certification.
Sec. 1863. Basis for determinations.
Sec. 1864. Oversight and administration; authorization of 
          appropriations.
Sec. 1865. Increased penalties for false statements.
Sec. 1866. Annual report on trade adjustment assistance for firms.
Sec. 1867. Technical corrections.

          PART III--Trade Adjustment Assistance for Communities

Sec. 1871. Purpose.
Sec. 1872. Trade adjustment assistance for communities.
Sec. 1873. Conforming amendments.

            PART IV--Trade Adjustment Assistance for Farmers

Sec. 1881. Definitions.
Sec. 1882. Eligibility.
Sec. 1883. Benefits.
Sec. 1884. Report.
Sec. 1885. Fraud and recovery of overpayments.
Sec. 1886. Determination of increases of imports for certain fishermen.
Sec. 1887. Extension of trade adjustment assistance for farmers.

                       PART V--General Provisions

Sec. 1891. Effective date.
Sec. 1892. Extension of trade adjustment assistance programs.
Sec. 1893. Termination; related provisions.
Sec. 1894. Government Accountability Office report.
Sec. 1895. Emergency designation.

                  PART VI--Health Coverage Improvement

Sec. 1899. Short title.
Sec. 1899A. Improvement of the affordability of the credit.
Sec. 1899B. Payment for monthly premiums paid prior to commencement of 
          advance payments of credit.
Sec. 1899C. TAA recipients not enrolled in training programs eligible 
          for credit.
Sec. 1899D. TAA pre-certification period rule for purposes of 
          determining whether there is a 63-day lapse in creditable 
          coverage.
Sec. 1899E. Continued qualification of family members after certain 
          events.
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible 
          individuals and PBGC recipients.
Sec. 1899G. Addition of coverage through voluntary employees' 
          beneficiary associations.
Sec. 1899H. Notice requirements.
Sec. 1899I. Survey and report on enhanced health coverage tax credit 
          program.
Sec. 1899J. Authorization of appropriations.
Sec. 1899K. Extension of national emergency grants.
Sec. 1899L. GAO study and report.

          Subtitle A--Tax Relief for Individuals and Families

                       PART I--GENERAL TAX RELIEF

SEC. 1001. MAKING WORK PAY CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of 
chapter 1 is amended by inserting after section 36 the 
following new section:

``SEC. 36A. MAKING WORK PAY CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible 
individual, there shall be allowed as a credit against the tax 
imposed by this subtitle for the taxable year an amount equal 
to the lesser of--
            ``(1) 6.2 percent of earned income of the taxpayer, 
        or
            ``(2) $400 ($800 in the case of a joint return).
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--The amount allowable as a credit 
        under subsection (a) (determined without regard to this 
        paragraph and subsection (c)) for the taxable year 
        shall be reduced (but not below zero) by 2 percent of 
        so much of the taxpayer's modified adjusted gross 
        income as exceeds $75,000 ($150,000 in the case of a 
        joint return).
            ``(2) Modified adjusted gross income.--For purposes 
        of subparagraph (A), the term `modified adjusted gross 
        income' means the adjusted gross income of the taxpayer 
        for the taxable year increased by any amount excluded 
        from gross income under section 911, 931, or 933.
    ``(c) Reduction for Certain Other Payments.--The credit 
allowed under subsection (a) for any taxable year shall be 
reduced by the amount of any payments received by the taxpayer 
during such taxable year under section 2201, and any credit 
allowed to the taxpayer under section 2202, of the American 
Recovery and Reinvestment Tax Act of 2009.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible 
                individual' means any individual other than--
                            ``(i) any nonresident alien 
                        individual,
                            ``(ii) any individual with respect 
                        to whom a deduction under section 151 
                        is allowable to another taxpayer for a 
                        taxable year beginning in the calendar 
                        year in which the individual's taxable 
                        year begins, and
                            ``(iii) an estate or trust.
                    ``(B) Identification number requirement.--
                Such term shall not include any individual who 
                does not include on the return of tax for the 
                taxable year--
                            ``(i) such individual's social 
                        security account number, and
                            ``(ii) in the case of a joint 
                        return, the social security account 
                        number of one of the taxpayers on such 
                        return.
                For purposes of the preceding sentence, the 
                social security account number shall not 
                include a TIN issued by the Internal Revenue 
                Service.
            ``(2) Earned income.--The term `earned income' has 
        the meaning given such term by section 32(c)(2), except 
        that such term shall not include net earnings from 
        self-employment which are not taken into account in 
        computing taxable income. For purposes of the preceding 
        sentence, any amount excluded from gross income by 
        reason of section 112 shall be treated as earned income 
        which is taken into account in computing taxable income 
        for the taxable year.
    ``(e) Termination.--This section shall not apply to taxable 
years beginning after December 31, 2010.''.
    (b) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possession.--The Secretary 
                of the Treasury shall pay to each possession of 
                the United States with a mirror code tax system 
                amounts equal to the loss to that possession by 
                reason of the amendments made by this section 
                with respect to taxable years beginning in 2009 
                and 2010. Such amounts shall be determined by 
                the Secretary of the Treasury based on 
                information provided by the government of the 
                respective possession.
                    (B) Other possessions.--The Secretary of 
                the Treasury shall pay to each possession of 
                the United States which does not have a mirror 
                code tax system amounts estimated by the 
                Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been 
                provided to residents of such possession by 
                reason of the amendments made by this section 
                for taxable years beginning in 2009 and 2010 if 
                a mirror code tax system had been in effect in 
                such possession. The preceding sentence shall 
                not apply with respect to any possession of the 
                United States unless such possession has a 
                plan, which has been approved by the Secretary 
                of the Treasury, under which such possession 
                will promptly distribute such payments to the 
                residents of such possession.
            (2) Coordination with credit allowed against united 
        states income taxes.--No credit shall be allowed 
        against United States income taxes for any taxable year 
        under section 36A of the Internal Revenue Code of 1986 
        (as added by this section) to any person--
                    (A) to whom a credit is allowed against 
                taxes imposed by the possession by reason of 
                the amendments made by this section for such 
                taxable year, or
                    (B) who is eligible for a payment under a 
                plan described in paragraph (1)(B) with respect 
                to such taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For 
                purposes of this subsection, the term 
                ``possession of the United States'' includes 
                the Commonwealth of Puerto Rico and the 
                Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes 
                of this subsection, the term ``mirror code tax 
                system'' means, with respect to any possession 
                of the United States, the income tax system of 
                such possession if the income tax liability of 
                the residents of such possession under such 
                system is determined by reference to the income 
                tax laws of the United States as if such 
                possession were the United States.
                    (C) Treatment of payments.--For purposes of 
                section 1324(b)(2) of title 31, United States 
                Code, the payments under this subsection shall 
                be treated in the same manner as a refund due 
                from the credit allowed under section 36A of 
                the Internal Revenue Code of 1986 (as added by 
                this section).
    (c) Refunds Disregarded in the Administration of Federal 
Programs and Federally Assisted Programs.--Any credit or refund 
allowed or made to any individual by reason of section 36A of 
the Internal Revenue Code of 1986 (as added by this section) or 
by reason of subsection (b) of this section shall not be taken 
into account as income and shall not be taken into account as 
resources for the month of receipt and the following 2 months, 
for purposes of determining the eligibility of such individual 
or any other individual for benefits or assistance, or the 
amount or extent of benefits or assistance, under any Federal 
program or under any State or local program financed in whole 
or in part with Federal funds.
    (d) Authority Relating to Clerical Errors.--Section 
6213(g)(2) is amended by striking ``and'' at the end of 
subparagraph (L)(ii), by striking the period at the end of 
subparagraph (M) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                    ``(N) an omission of the reduction required 
                under section 36A(c) with respect to the credit 
                allowed under section 36A or an omission of the 
                correct social security account number required 
                under section 36A(d)(1)(B).''.
    (e) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) is amended by inserting 
        ``36A,'' after ``36,''.
            (2) Section 1324(b)(2) of title 31, United States 
        Code, is amended by inserting ``36A,'' after ``36,''.
            (3) The table of sections for subpart C of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 36 the following new 
        item:

``Sec. 36A. Making work pay credit.''.

    (f) Effective Date.--This section, and the amendments made 
by this section, shall apply to taxable years beginning after 
December 31, 2008.

SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.

    (a) In General.--Subsection (b) of section 32 is amended by 
adding at the end the following new paragraph:
            ``(3) Special rules for 2009 and 2010.--In the case 
        of any taxable year beginning in 2009 or 2010--
                    ``(A) Increased credit percentage for 3 or 
                more qualifying children.--In the case of a 
                taxpayer with 3 or more qualifying children, 
                the credit percentage is 45 percent.
                    ``(B) Reduction of marriage penalty.--
                            ``(i) In general.--The dollar 
                        amount in effect under paragraph (2)(B) 
                        shall be $5,000.
                            ``(ii) Inflation adjustment.--In 
                        the case of any taxable year beginning 
                        in 2010, the $5,000 amount in clause 
                        (i) shall be increased by an amount 
                        equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost of living 
                                adjustment determined under 
                                section 1(f)(3) for the 
                                calendar year in which the 
                                taxable year begins determined 
                                by substituting `calendar year 
                                2008' for `calendar year 1992' 
                                in subparagraph (B) thereof.
                            ``(iii) Rounding.--Subparagraph (A) 
                        of subsection (j)(2) shall apply after 
                        taking into account any increase under 
                        clause (ii).''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.

    (a) In General.--Paragraph (4) of section 24(d) is amended 
to read as follows:
            ``(4) Special rule for 2009 and 2010.--
        Notwithstanding paragraph (3), in the case of any 
        taxable year beginning in 2009 or 2010, the dollar 
        amount in effect for such taxable year under paragraph 
        (1)(B)(i) shall be $3,000.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 25A (relating to Hope Scholarship 
Credit) is amended by redesignating subsection (i) as 
subsection (j) and by inserting after subsection (h) the 
following new subsection:
    ``(i) American Opportunity Tax Credit.--In the case of any 
taxable year beginning in 2009 or 2010--
            ``(1) Increase in credit.--The Hope Scholarship 
        Credit shall be an amount equal to the sum of--
                    ``(A) 100 percent of so much of the 
                qualified tuition and related expenses paid by 
                the taxpayer during the taxable year (for 
                education furnished to the eligible student 
                during any academic period beginning in such 
                taxable year) as does not exceed $2,000, plus
                    ``(B) 25 percent of such expenses so paid 
                as exceeds $2,000 but does not exceed $4,000.
            ``(2) Credit allowed for first 4 years of post-
        secondary education.--Subparagraphs (A) and (C) of 
        subsection (b)(2) shall be applied by substituting `4' 
        for `2'.
            ``(3) Qualified tuition and related expenses to 
        include required course materials.--Subsection 
        (f)(1)(A) shall be applied by substituting `tuition, 
        fees, and course materials' for `tuition and fees'.
            ``(4) Increase in agi limits for hope scholarship 
        credit.--In lieu of applying subsection (d) with 
        respect to the Hope Scholarship Credit, such credit 
        (determined without regard to this paragraph) shall be 
        reduced (but not below zero) by the amount which bears 
        the same ratio to such credit (as so determined) as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified 
                        adjusted gross income (as defined in 
                        subsection (d)(3)) for such taxable 
                        year, over
                            ``(ii) $80,000 ($160,000 in the 
                        case of a joint return), bears to
                    ``(B) $10,000 ($20,000 in the case of a 
                joint return).
            ``(5) Credit allowed against alternative minimum 
        tax.--In the case of a taxable year to which section 
        26(a)(2) does not apply, so much of the credit allowed 
        under subsection (a) as is attributable to the Hope 
        Scholarship Credit shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability 
                (as defined in section 26(b)) plus the tax 
                imposed by section 55, over
                    ``(B) the sum of the credits allowable 
                under this subpart (other than this subsection 
                and sections 23, 25D, and 30D) and section 27 
                for the taxable year.
        Any reference in this section or section 24, 25, 26, 
        25B, 904, or 1400C to a credit allowable under this 
        subsection shall be treated as a reference to so much 
        of the credit allowable under subsection (a) as is 
        attributable to the Hope Scholarship Credit.
            ``(6) Portion of credit made refundable.--40 
        percent of so much of the credit allowed under 
        subsection (a) as is attributable to the Hope 
        Scholarship Credit (determined after application of 
        paragraph (4) and without regard to this paragraph and 
        section 26(a)(2) or paragraph (5), as the case may be) 
        shall be treated as a credit allowable under subpart C 
        (and not allowed under subsection (a)). The preceding 
        sentence shall not apply to any taxpayer for any 
        taxable year if such taxpayer is a child to whom 
        subsection (g) of section 1 applies for such taxable 
        year.
            ``(7) Coordination with midwestern disaster area 
        benefits.--In the case of a taxpayer with respect to 
        whom section 702(a)(1)(B) of the Heartland Disaster Tax 
        Relief Act of 2008 applies for any taxable year, such 
        taxpayer may elect to waive the application of this 
        subsection to such taxpayer for such taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) is amended by inserting 
        ``25A(i),'' after ``23,''.
            (2) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``25A(i),'' after ``24,''.
            (3) Section 26(a)(1) is amended by inserting 
        ``25A(i),'' after ``24,''.
            (4) Section 25B(g)(2) is amended by inserting 
        ``25A(i),'' after ``23,''.
            (5) Section 904(i) is amended by inserting 
        ``25A(i),'' after ``24,''.
            (6) Section 1400C(d)(2) is amended by inserting 
        ``25A(i),'' after ``24,''.
            (7) Section 6211(b)(4)(A) is amended by inserting 
        ``25A by reason of subsection (i)(6) thereof,'' after 
        ``24(d),''.
            (8) Section 1324(b)(2) of title 31, United States 
        Code, is amended by inserting ``25A,'' before ``35''.
    (c) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possession.--The Secretary 
                of the Treasury shall pay to each possession of 
                the United States with a mirror code tax system 
                amounts equal to the loss to that possession by 
                reason of the application of section 25A(i)(6) 
                of the Internal Revenue Code of 1986 (as added 
                by this section) with respect to taxable years 
                beginning in 2009 and 2010. Such amounts shall 
                be determined by the Secretary of the Treasury 
                based on information provided by the government 
                of the respective possession.
                    (B) Other possessions.--The Secretary of 
                the Treasury shall pay to each possession of 
                the United States which does not have a mirror 
                code tax system amounts estimated by the 
                Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been 
                provided to residents of such possession by 
                reason of the application of section 25A(i)(6) 
                of such Code (as so added) for taxable years 
                beginning in 2009 and 2010 if a mirror code tax 
                system had been in effect in such possession. 
                The preceding sentence shall not apply with 
                respect to any possession of the United States 
                unless such possession has a plan, which has 
                been approved by the Secretary of the Treasury, 
                under which such possession will promptly 
                distribute such payments to the residents of 
                such possession.
            (2) Coordination with credit allowed against united 
        states income taxes.--Section 25A(i)(6) of such Code 
        (as added by this section) shall not apply to a bona 
        fide resident of any possession of the United States.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For 
                purposes of this subsection, the term 
                ``possession of the United States'' includes 
                the Commonwealth of Puerto Rico and the 
                Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes 
                of this subsection, the term ``mirror code tax 
                system'' means, with respect to any possession 
                of the United States, the income tax system of 
                such possession if the income tax liability of 
                the residents of such possession under such 
                system is determined by reference to the income 
                tax laws of the United States as if such 
                possession were the United States.
                    (C) Treatment of payments.--For purposes of 
                section 1324(b)(2) of title 31, United States 
                Code, the payments under this subsection shall 
                be treated in the same manner as a refund due 
                from the credit allowed under section 25A of 
                the Internal Revenue Code of 1986 by reason of 
                subsection (i)(6) of such section (as added by 
                this section).
    (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.
    (e) Application of EGTRRA Sunset.--The amendment made by 
subsection (b)(1) shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 in the same 
manner as the provision of such Act to which such amendment 
relates.
    (f) Treasury Studies Regarding Education Incentives.--
            (1) Study regarding coordination with non-tax 
        student financial assistance.--The Secretary of the 
        Treasury and the Secretary of Education, or their 
        delegates, shall--
                    (A) study how to coordinate the credit 
                allowed under section 25A of the Internal 
                Revenue Code of 1986 with the Federal Pell 
                Grant program under section 401 of the Higher 
                Education Act of 1965 to maximize their 
                effectiveness at promoting college 
                affordability, and
                    (B) examine ways to expedite the delivery 
                of the tax credit.
            (2) Study regarding inclusion of community service 
        requirements.--The Secretary of the Treasury and the 
        Secretary of Education, or their delegates, shall study 
        the feasibility of requiring including community 
        service as a condition of taking their tuition and 
        related expenses into account under section 25A of the 
        Internal Revenue Code of 1986.
            (3) Report.--Not later than 1 year after the date 
        of the enactment of this Act, the Secretary of the 
        Treasury, or the Secretary's delegate, shall report to 
        Congress on the results of the studies conducted under 
        this paragraph.

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED 
                    HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS 
                    IN 2009 AND 2010.

    (a) In General.--Section 529(e)(3)(A) is amended by 
striking ``and'' at the end of clause (i), by striking the 
period at the end of clause (ii), and by adding at the end the 
following:
                            ``(iii) expenses paid or incurred 
                        in 2009 or 2010 for the purchase of any 
                        computer technology or equipment (as 
                        defined in section 170(e)(6)(F)(i)) or 
                        Internet access and related services, 
                        if such technology, equipment, or 
                        services are to be used by the 
                        beneficiary and the beneficiary's 
                        family during any of the years the 
                        beneficiary is enrolled at an eligible 
                        educational institution.
                Clause (iii) shall not include expenses for 
                computer software designed for sports, games, 
                or hobbies unless the software is predominantly 
                educational in nature.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to expenses paid or incurred after December 31, 
2008.

SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; 
                    WAIVER OF REQUIREMENT TO REPAY.

    (a) Extension.--
            (1) In general.--Section 36(h) is amended by 
        striking ``July 1, 2009'' and inserting ``December 1, 
        2009''.
            (2) Conforming amendment.--Section 36(g) is amended 
        by striking ``July 1, 2009'' and inserting ``December 
        1, 2009''.
    (b) Increase.--
            (1) In general.--Section 36(b) is amended by 
        striking ``$7,500'' each place it appears and inserting 
        ``$8,000''.
            (2) Conforming amendment.--Section 36(b)(1)(B) is 
        amended by striking ``$3,750'' and inserting 
        ``$4,000''.
    (c) Waiver of Recapture.--
            (1) In general.--Paragraph (4) of section 36(f) is 
        amended by adding at the end the following new 
        subparagraph:
                    ``(D) Waiver of recapture for purchases in 
                2009.--In the case of any credit allowed with 
                respect to the purchase of a principal 
                residence after December 31, 2008, and before 
                December 1, 2009--
                            ``(i) paragraph (1) shall not 
                        apply, and
                            ``(ii) paragraph (2) shall apply 
                        only if the disposition or cessation 
                        described in paragraph (2) with respect 
                        to such residence occurs during the 36-
                        month period beginning on the date of 
                        the purchase of such residence by the 
                        taxpayer.''.
            (2) Conforming amendment.--Subsection (g) of 
        section 36 is amended by striking ``subsection (c)'' 
        and inserting ``subsections (c) and (f)(4)(D)''.
    (d) Coordination With First-Time Homebuyer Credit for 
District of Columbia.--
            (1) In general.--Subsection (e) of section 1400C is 
        amended by adding at the end the following new 
        paragraph:
            ``(4) Coordination with national first-time 
        homebuyers credit.--No credit shall be allowed under 
        this section to any taxpayer with respect to the 
        purchase of a residence after December 31, 2008, and 
        before December 1, 2009, if a credit under section 36 
        is allowable to such taxpayer (or the taxpayer's 
        spouse) with respect to such purchase.''.
            (2) Conforming amendment.--Section 36(d) is amended 
        by striking paragraph (1).
    (e) Removal of Prohibition on Financing by Mortgage Revenue 
Bonds.--Section 36(d), as amended by subsection (c)(2), is 
amended by striking paragraph (2) and by redesignating 
paragraphs (3) and (4) as paragraphs (1) and (2), respectively.
    (f) Effective Date.--The amendments made by this section 
shall apply to residences purchased after December 31, 2008.

SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 85 of the Internal Revenue Code of 
1986 (relating to unemployment compensation) is amended by 
adding at the end the following new subsection:
    ``(c) Special Rule for 2009.--In the case of any taxable 
year beginning in 2009, gross income shall not include so much 
of the unemployment compensation received by an individual as 
does not exceed $2,400.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON 
                    THE PURCHASE OF CERTAIN MOTOR VEHICLES.

    (a) In General.--Subsection (a) of section 164 is amended 
by inserting after paragraph (5) the following new paragraph:
            ``(6) Qualified motor vehicle taxes.''.
    (b) Qualified Motor Vehicle Taxes.--Subsection (b) of 
section 164 is amended by adding at the end the following new 
paragraph:
            ``(6) Qualified motor vehicle taxes.--
                    ``(A) In general.--For purposes of this 
                section, the term `qualified motor vehicle 
                taxes' means any State or local sales or excise 
                tax imposed on the purchase of a qualified 
                motor vehicle.
                    ``(B) Limitation based on vehicle price.--
                The amount of any State or local sales or 
                excise tax imposed on the purchase of a 
                qualified motor vehicle taken into account 
                under subparagraph (A) shall not exceed the 
                portion of such tax attributable to so much of 
                the purchase price as does not exceed $49,500.
                    ``(C) Income limitation.--The amount 
                otherwise taken into account under subparagraph 
                (A) (after the application of subparagraph (B)) 
                for any taxable year shall be reduced (but not 
                below zero) by the amount which bears the same 
                ratio to the amount which is so treated as--
                            ``(i) the excess (if any) of--
                                    ``(I) the taxpayer's 
                                modified adjusted gross income 
                                for such taxable year, over
                                    ``(II) $125,000 ($250,000 
                                in the case of a joint return), 
                                bears to
                            ``(ii) $10,000.
                For purposes of the preceding sentence, the 
                term `modified adjusted gross income' means the 
                adjusted gross income of the taxpayer for the 
                taxable year (determined without regard to 
                sections 911, 931, and 933).
                    ``(D) Qualified motor vehicle.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term 
                        `qualified motor vehicle' means--
                                    ``(I) a passenger 
                                automobile or light truck which 
                                is treated as a motor vehicle 
                                for purposes of title II of the 
                                Clean Air Act, the gross 
                                vehicle weight rating of which 
                                is not more than 8,500 pounds, 
                                and the original use of which 
                                commences with the taxpayer,
                                    ``(II) a motorcycle the 
                                gross vehicle weight rating of 
                                which is not more than 8,500 
                                pounds and the original use of 
                                which commences with the 
                                taxpayer, and
                                    ``(III) a motor home the 
                                original use of which commences 
                                with the taxpayer.
                            ``(ii) Other terms.--The terms 
                        `motorcycle' and `motor home' have the 
                        meanings given such terms under section 
                        571.3 of title 49, Code of Federal 
                        Regulations (as in effect on the date 
                        of the enactment of this paragraph).
                    ``(E) Qualified motor vehicle taxes not 
                included in cost of acquired property.--The 
                last sentence of subsection (a) shall not apply 
                to any qualified motor vehicle taxes.
                    ``(F) Coordination with general sales 
                tax.--This paragraph shall not apply in the 
                case of a taxpayer who makes an election under 
                paragraph (5) for the taxable year.
                    ``(G) Termination.--This paragraph shall 
                not apply to purchases after December 31, 
                2009.''.
    (c) Deduction Allowed to Nonitemizers.--
            (1) In general.--Paragraph (1) of section 63(c) is 
        amended by striking ``and'' at the end of subparagraph 
        (C), by striking the period at the end of subparagraph 
        (D) and inserting ``, and'', and by adding at the end 
        the following new subparagraph:
                    ``(E) the motor vehicle sales tax 
                deduction.''.
            (2) Definition.--Section 63(c) is amended by adding 
        at the end the following new paragraph:
            ``(9) Motor vehicle sales tax deduction.--For 
        purposes of paragraph (1), the term `motor vehicle 
        sales tax deduction' means the amount allowable as a 
        deduction under section 164(a)(6). Such term shall not 
        include any amount taken into account under section 
        62(a).''.
    (d) Treatment of Deduction Under Alternative Minimum Tax.--
The last sentence of section 56(b)(1)(E) is amended by striking 
``section 63(c)(1)(D)'' and inserting ``subparagraphs (D) and 
(E) of section 63(c)(1)''.
    (e) Effective Date.--The amendments made by this section 
shall apply to purchases on or after the date of the enactment 
of this Act in taxable years ending after such date.

                PART II--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                    NONREFUNDABLE PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) (relating 
to special rule for taxable years 2000 through 2008) is 
amended--
            (1) by striking ``or 2008'' and inserting ``2008, 
        or 2009'', and
            (2) by striking ``2008'' in the heading thereof and 
        inserting ``2009''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
                    AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) (relating 
to exemption amount) is amended--
            (1) by striking ``($69,950 in the case of taxable 
        years beginning in 2008)'' in subparagraph (A) and 
        inserting ``($70,950 in the case of taxable years 
        beginning in 2009)'', and
            (2) by striking ``($46,200 in the case of taxable 
        years beginning in 2008)'' in subparagraph (B) and 
        inserting ``($46,700 in the case of taxable years 
        beginning in 2009)''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

                     Subtitle B--Energy Incentives

                  PART I--RENEWABLE ENERGY INCENTIVES

SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
                    RENEWABLE RESOURCES.

    (a) In General.--Subsection (d) of section 45 is amended--
            (1) by striking ``2010'' in paragraph (1) and 
        inserting ``2013'',
            (2) by striking ``2011'' each place it appears in 
        paragraphs (2), (3), (4), (6), (7) and (9) and 
        inserting ``2014'', and
            (3) by striking ``2012'' in paragraph (11)(B) and 
        inserting ``2014''.
    (b) Technical Amendment.--Paragraph (5) of section 45(d) is 
amended by striking ``and before'' and all that follows and 
inserting `` and before October 3, 2008.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection 
        (a) shall apply to property placed in service after the 
        date of the enactment of this Act.
            (2) Technical amendment.--The amendment made by 
        subsection (b) shall take effect as if included in 
        section 102 of the Energy Improvement and Extension Act 
        of 2008.

SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

    (a) In General.--Subsection (a) of section 48 is amended by 
adding at the end the following new paragraph:
            ``(5) Election to treat qualified facilities as 
        energy property.--
                    ``(A) In general.--In the case of any 
                qualified property which is part of a qualified 
                investment credit facility--
                            ``(i) such property shall be 
                        treated as energy property for purposes 
                        of this section, and
                            ``(ii) the energy percentage with 
                        respect to such property shall be 30 
                        percent.
                    ``(B) Denial of production credit.--No 
                credit shall be allowed under section 45 for 
                any taxable year with respect to any qualified 
                investment credit facility.
                    ``(C) Qualified investment credit 
                facility.--For purposes of this paragraph, the 
                term `qualified investment credit facility' 
                means any of the following facilities if no 
                credit has been allowed under section 45 with 
                respect to such facility and the taxpayer makes 
                an irrevocable election to have this paragraph 
                apply to such facility:
                            ``(i) Wind facilities.--Any 
                        qualified facility (within the meaning 
                        of section 45) described in paragraph 
                        (1) of section 45(d) if such facility 
                        is placed in service in 2009, 2010, 
                        2011, or 2012.
                            ``(ii) Other facilities.--Any 
                        qualified facility (within the meaning 
                        of section 45) described in paragraph 
                        (2), (3), (4), (6), (7), (9), or (11) 
                        of section 45(d) if such facility is 
                        placed in service in 2009, 2010, 2011, 
                        2012, or 2013.
                    ``(D) Qualified property.--For purposes of 
                this paragraph, the term `qualified property' 
                means property--
                            ``(i) which is--
                                    ``(I) tangible personal 
                                property, or
                                    ``(II) other tangible 
                                property (not including a 
                                building or its structural 
                                components), but only if such 
                                property is used as an integral 
                                part of the qualified 
                                investment credit facility, and
                            ``(ii) with respect to which 
                        depreciation (or amortization in lieu 
                        of depreciation) is allowable.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to facilities placed in service after December 31, 
2008.

SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY 
                    PROPERTY.

    (a) Repeal of Limitation on Credit for Qualified Small Wind 
Energy Property.--Paragraph (4) of section 48(c) is amended by 
striking subparagraph (B) and by redesignating subparagraphs 
(C) and (D) as subparagraphs (B) and (C).
    (b) Repeal of Limitation on Property Financed by Subsidized 
Energy Financing.--
            (1) In general.--Section 48(a)(4) is amended by 
        adding at the end the following new subparagraph:
                    ``(D) Termination.--This paragraph shall 
                not apply to periods after December 31, 2008, 
                under rules similar to the rules of section 
                48(m) (as in effect on the day before the date 
                of the enactment of the Revenue Reconciliation 
                Act of 1990).''.
            (2) Conforming amendments.--
                    (A) Section 25C(e)(1) is amended by 
                striking ``(8), and (9)'' and inserting ``and 
                (8)''.
                    (B) Section 25D(e) is amended by striking 
                paragraph (9).
                    (C) Section 48A(b)(2) is amended by 
                inserting ``(without regard to subparagraph (D) 
                thereof)'' after ``section 48(a)(4)''.
                    (D) Section 48B(b)(2) is amended by 
                inserting ``(without regard to subparagraph (D) 
                thereof)'' after ``section 48(a)(4)''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendment made by this section shall apply to 
        periods after December 31, 2008, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code 
        of 1986 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990).
            (2) Conforming amendments.--The amendments made by 
        subparagraphs (A) and (B) of subsection (b)(2) shall 
        apply to taxable years beginning after December 31, 
        2008.

SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.

    Section 48 is amended by adding at the end the following 
new subsection:
    ``(d) Coordination With Department of Treasury Grants.--In 
the case of any property with respect to which the Secretary 
makes a grant under section 1603 of the American Recovery and 
Reinvestment Tax Act of 2009--
            ``(1) Denial of production and investment 
        credits.--No credit shall be determined under this 
        section or section 45 with respect to such property for 
        the taxable year in which such grant is made or any 
        subsequent taxable year.
            ``(2) Recapture of credits for progress 
        expenditures made before grant.--If a credit was 
        determined under this section with respect to such 
        property for any taxable year ending before such grant 
        is made--
                    ``(A) the tax imposed under subtitle A on 
                the taxpayer for the taxable year in which such 
                grant is made shall be increased by so much of 
                such credit as was allowed under section 38,
                    ``(B) the general business carryforwards 
                under section 39 shall be adjusted so as to 
                recapture the portion of such credit which was 
                not so allowed, and
                    ``(C) the amount of such grant shall be 
                determined without regard to any reduction in 
                the basis of such property by reason of such 
                credit.
            ``(3) Treatment of grants.--Any such grant shall--
                    ``(A) not be includible in the gross income 
                of the taxpayer, but
                    ``(B) shall be taken into account in 
                determining the basis of the property to which 
                such grant relates, except that the basis of 
                such property shall be reduced under section 
                50(c) in the same manner as a credit allowed 
                under subsection (a).''.

PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND 
                  QUALIFIED ENERGY CONSERVATION BONDS

SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE 
                    ENERGY BONDS.

    Subsection (c) of section 54C is amended by adding at the 
end the following new paragraph:
            ``(4) Additional limitation.--The national new 
        clean renewable energy bond limitation shall be 
        increased by $1,600,000,000. Such increase shall be 
        allocated by the Secretary consistent with the rules of 
        paragraphs (2) and (3).''.

SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY 
                    CONSERVATION BONDS.

    (a) In General.--Section 54D(d) is amended by striking 
``$800,000,000'' and inserting ``$3,200,000,000''.
    (b) Clarification With Respect to Green Community 
Programs.--
            (1) In general.--Clause (ii) of section 
        54D(f)(1)(A) is amended by inserting ``(including the 
        use of loans, grants, or other repayment mechanisms to 
        implement such programs)'' after ``green community 
        programs''.
            (2) Special rules for bonds for implementing green 
        community programs.--Subsection (e) of section 54D is 
        amended by adding at the end the following new 
        paragraph:
            ``(4) Special rules for bonds to implement green 
        community programs.--In the case of any bond issued for 
        the purpose of providing loans, grants, or other 
        repayment mechanisms for capital expenditures to 
        implement green community programs, such bond shall not 
        be treated as a private activity bond for purposes of 
        paragraph (3).''.

                PART III--ENERGY CONSERVATION INCENTIVES

SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
                    PROPERTY.

    (a) In General.--Section 25C is amended by striking 
subsections (a) and (b) and inserting the following new 
subsections:
    ``(a) Allowance of Credit.--In the case of an individual, 
there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to 30 percent 
of the sum of--
            ``(1) the amount paid or incurred by the taxpayer 
        during such taxable year for qualified energy 
        efficiency improvements, and
            ``(2) the amount of the residential energy property 
        expenditures paid or incurred by the taxpayer during 
        such taxable year.
    ``(b) Limitation.--The aggregate amount of the credits 
allowed under this section for taxable years beginning in 2009 
and 2010 with respect to any taxpayer shall not exceed 
$1,500.''.
    (b) Modifications of Standards for Energy-Efficient 
Building Property.--
            (1) Electric heat pumps.--Subparagraph (B) of 
        section 25C(d)(3) is amended to read as follows:
                    ``(B) an electric heat pump which achieves 
                the highest efficiency tier established by the 
                Consortium for Energy Efficiency, as in effect 
                on January 1, 2009.''.
            (2) Central air conditioners.--Subparagraph (C) of 
        section 25C(d)(3) is amended by striking ``2006'' and 
        inserting ``2009''.
            (3) Water heaters.--Subparagraph (D) of section 
        25C(d)(3) is amended to read as follows:
                    ``(D) a natural gas, propane, or oil water 
                heater which has either an energy factor of at 
                least 0.82 or a thermal efficiency of at least 
                90 percent.''.
            (4) Wood stoves.--Subparagraph (E) of section 
        25C(d)(3) is amended by inserting ``, as measured using 
        a lower heating value'' after ``75 percent''.
    (c) Modifications of Standards for Oil Furnaces and Hot 
Water Boilers.--
            (1) In general.--Paragraph (4) of section 25C(d) is 
        amended to read as follows:
            ``(4) Qualified natural gas, propane, and oil 
        furnaces and hot water boilers.--
                    ``(A) Qualified natural gas furnace.--The 
                term `qualified natural gas furnace' means any 
                natural gas furnace which achieves an annual 
                fuel utilization efficiency rate of not less 
                than 95.
                    ``(B) Qualified natural gas hot water 
                boiler.--The term `qualified natural gas hot 
                water boiler' means any natural gas hot water 
                boiler which achieves an annual fuel 
                utilization efficiency rate of not less than 
                90.
                    ``(C) Qualified propane furnace.--The term 
                `qualified propane furnace' means any propane 
                furnace which achieves an annual fuel 
                utilization efficiency rate of not less than 
                95.
                    ``(D) Qualified propane hot water boiler.--
                The term `qualified propane hot water boiler' 
                means any propane hot water boiler which 
                achieves an annual fuel utilization efficiency 
                rate of not less than 90.
                    ``(E) Qualified oil furnaces.--The term 
                `qualified oil furnace' means any oil furnace 
                which achieves an annual fuel utilization 
                efficiency rate of not less than 90.
                    ``(F) Qualified oil hot water boiler.--The 
                term `qualified oil hot water boiler' means any 
                oil hot water boiler which achieves an annual 
                fuel utilization efficiency rate of not less 
                than 90.''.
            (2) Conforming amendment.--Clause (ii) of section 
        25C(d)(2)(A) is amended to read as follows:
                            ``(ii) any qualified natural gas 
                        furnace, qualified propane furnace, 
                        qualified oil furnace, qualified 
                        natural gas hot water boiler, qualified 
                        propane hot water boiler, or qualified 
                        oil hot water boiler, or''.
    (d) Modifications of Standards for Qualified Energy 
Efficiency Improvements.--
            (1) Qualifications for exterior windows, doors, and 
        skylights.--Subsection (c) of section 25C is amended by 
        adding at the end the following new paragraph:
            ``(4) Qualifications for exterior windows, doors, 
        and skylights.--Such term shall not include any 
        component described in subparagraph (B) or (C) of 
        paragraph (2) unless such component is equal to or 
        below a U factor of 0.30 and SHGC of 0.30.''.
            (2) Additional qualification for insulation.--
        Subparagraph (A) of section 25C(c)(2) is amended by 
        inserting ``and meets the prescriptive criteria for 
        such material or system established by the 2009 
        International Energy Conservation Code, as such Code 
        (including supplements) is in effect on the date of the 
        enactment of the American Recovery and Reinvestment Tax 
        Act of 2009'' after ``such dwelling unit''.
    (e) Extension.--Section 25C(g)(2) is amended by striking 
``December 31, 2009'' and inserting ``December 31, 2010''.
    (f) Effective Dates.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2008.
            (2) Efficiency standards.--The amendments made by 
        paragraphs (1), (2), and (3) of subsection (b) and 
        subsections (c) and (d) shall apply to property placed 
        in service after the date of the enactment of this Act.

SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
                    PROPERTY.

    (a) Removal of Credit Limitation for Property Placed in 
Service.--
            (1) In general.--Paragraph (1) of section 25D(b) is 
        amended to read as follows:
            ``(1) Maximum credit for fuel cells.--In the case 
        of any qualified fuel cell property expenditure, the 
        credit allowed under subsection (a) (determined without 
        regard to subsection (c)) for any taxable year shall 
        not exceed $500 with respect to each half kilowatt of 
        capacity of the qualified fuel cell property (as 
        defined in section 48(c)(1)) to which such expenditure 
        relates.''.
            (2) Conforming amendment.--Paragraph (4) of section 
        25D(e) is amended--
                    (A) by striking all that precedes 
                subparagraph (B) and inserting the following:
            ``(4) Fuel cell expenditure limitations in case of 
        joint occupancy.--In the case of any dwelling unit with 
        respect to which qualified fuel cell property 
        expenditures are made and which is jointly occupied and 
        used during any calendar year as a residence by two or 
        more individuals, the following rules shall apply:
                    ``(A) Maximum expenditures for fuel 
                cells.--The maximum amount of such expenditures 
                which may be taken into account under 
                subsection (a) by all such individuals with 
                respect to such dwelling unit during such 
                calendar year shall be $1,667 in the case of 
                each half kilowatt of capacity of qualified 
                fuel cell property (as defined in section 
                48(c)(1)) with respect to which such 
                expenditures relate.'', and
                    (B) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                    REFUELING PROPERTY.

    (a) In General.--Section 30C(e) is amended by adding at the 
end the following new paragraph:
            ``(6) Special rule for property placed in service 
        during 2009 and 2010.--In the case of property placed 
        in service in taxable years beginning after December 
        31, 2008, and before January 1, 2011--
                    ``(A) in the case of any such property 
                which does not relate to hydrogen--
                            ``(i) subsection (a) shall be 
                        applied by substituting `50 percent' 
                        for `30 percent',
                            ``(ii) subsection (b)(1) shall be 
                        applied by substituting `$50,000' for 
                        `$30,000', and
                            ``(iii) subsection (b)(2) shall be 
                        applied by substituting `$2,000' for 
                        `$1,000', and
                    ``(B) in the case of any such property 
                which relates to hydrogen, subsection (b)(1) 
                shall be applied by substituting `$200,000' for 
                `$30,000'.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008.

    PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE 
                    USED AS A TERTIARY INJECTANT.

    (a) In General.--Section 45Q(a)(2) is amended by striking 
``and'' at the end of subparagraph (A), by striking the period 
at the end of subparagraph (B) and inserting ``, and'', and by 
adding at the end the following new subparagraph:
                    ``(C) disposed of by the taxpayer in secure 
                geological storage.''.
    (b) Conforming Amendments.--
            (1) Section 45Q(d)(2) is amended--
                    (A) by striking ``subsection (a)(1)(B)'' 
                and inserting ``paragraph (1)(B) or (2)(C) of 
                subsection (a)'',
                    (B) by striking ``and unminable coal 
                seems'' and inserting ``, oil and gas 
                reservoirs, and unminable coal seams'', and
                    (C) by inserting ``the Secretary of Energy, 
                and the Secretary of the Interior,'' after 
                ``Environmental Protection Agency''.
            (2) Section 45Q(a)(1)(B) is amended by inserting 
        ``and not used by the taxpayer as described in 
        paragraph (2)(B)'' after ``storage''.
            (3) Section 45Q(e) is amended by striking 
        ``captured and disposed of or used as a tertiary 
        injectant'' and inserting ``taken into account in 
        accordance with subsection (a)''.
    (c) Effective Date.--The amendments made by this section 
shall apply to carbon dioxide captured after the date of the 
enactment of this Act.

             PART V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
                    VEHICLES.

    (a) In General.--Section 30D is amended to read as follows:

``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credit amounts 
determined under subsection (b) with respect to each new 
qualified plug-in electric drive motor vehicle placed in 
service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any new qualified plug-in 
        electric drive motor vehicle is the sum of the amounts 
        determined under paragraphs (2) and (3) with respect to 
        such vehicle.
            ``(2) Base amount.--The amount determined under 
        this paragraph is $2,500.
            ``(3) Battery capacity.--In the case of a vehicle 
        which draws propulsion energy from a battery with not 
        less than 5 kilowatt hours of capacity, the amount 
        determined under this paragraph is $417, plus $417 for 
        each kilowatt hour of capacity in excess of 5 kilowatt 
        hours. The amount determined under this paragraph shall 
        not exceed $5,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general 
        business credit.--So much of the credit which would be 
        allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) that is 
        attributable to property of a character subject to an 
        allowance for depreciation shall be treated as a credit 
        listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this 
                title, the credit allowed under subsection (a) 
                for any taxable year (determined after 
                application of paragraph (1)) shall be treated 
                as a credit allowable under subpart A for such 
                taxable year.
                    ``(B) Limitation based on amount of tax.--
                In the case of a taxable year to which section 
                26(a)(2) does not apply, the credit allowed 
                under subsection (a) for any taxable year 
                (determined after application of paragraph (1)) 
                shall not exceed the excess of--
                            ``(i) the sum of the regular tax 
                        liability (as defined in section 26(b)) 
                        plus the tax imposed by section 55, 
                        over
                            ``(ii) the sum of the credits 
                        allowable under subpart A (other than 
                        this section and sections 23 and 25D) 
                        and section 27 for the taxable year.
    ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--
For purposes of this section--
            ``(1) In general.--The term `new qualified plug-in 
        electric drive motor vehicle' means a motor vehicle--
                    ``(A) the original use of which commences 
                with the taxpayer,
                    ``(B) which is acquired for use or lease by 
                the taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which is treated as a motor vehicle 
                for purposes of title II of the Clean Air Act,
                    ``(E) which has a gross vehicle weight 
                rating of less than 14,000 pounds, and
                    ``(F) which is propelled to a significant 
                extent by an electric motor which draws 
                electricity from a battery which--
                            ``(i) has a capacity of not less 
                        than 4 kilowatt hours, and
                            ``(ii) is capable of being 
                        recharged from an external source of 
                        electricity.
            ``(2) Motor vehicle.--The term `motor vehicle' 
        means any vehicle which is manufactured primarily for 
        use on public streets, roads, and highways (not 
        including a vehicle operated exclusively on a rail or 
        rails) and which has at least 4 wheels.
            ``(3) Manufacturer.--The term `manufacturer' has 
        the meaning given such term in regulations prescribed 
        by the Administrator of the Environmental Protection 
        Agency for purposes of the administration of title II 
        of the Clean Air Act (42 U.S.C. 7521 et seq.).
            ``(4) Battery capacity.--The term `capacity' means, 
        with respect to any battery, the quantity of 
        electricity which the battery is capable of storing, 
        expressed in kilowatt hours, as measured from a 100 
        percent state of charge to a 0 percent state of charge.
    ``(e) Limitation on Number of New Qualified Plug-in 
Electric Drive Motor Vehicles Eligible for Credit.--
            ``(1) In general.--In the case of a new qualified 
        plug-in electric drive motor vehicle sold during the 
        phaseout period, only the applicable percentage of the 
        credit otherwise allowable under subsection (a) shall 
        be allowed.
            ``(2) Phaseout period.--For purposes of this 
        subsection, the phaseout period is the period beginning 
        with the second calendar quarter following the calendar 
        quarter which includes the first date on which the 
        number of new qualified plug-in electric drive motor 
        vehicles manufactured by the manufacturer of the 
        vehicle referred to in paragraph (1) sold for use in 
        the United States after December 31, 2009, is at least 
        200,000.
            ``(3) Applicable percentage.--For purposes of 
        paragraph (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar 
                quarters of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th 
                calendar quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--Rules similar to the 
        rules of section 30B(f)(4) shall apply for purposes of 
        this subsection.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--For purposes of this 
        subtitle, the basis of any property for which a credit 
        is allowable under subsection (a) shall be reduced by 
        the amount of such credit so allowed.
            ``(2) No double benefit.--The amount of any 
        deduction or other credit allowable under this chapter 
        for a new qualified plug-in electric drive motor 
        vehicle shall be reduced by the amount of credit 
        allowed under subsection (a) for such vehicle.
            ``(3) Property used by tax-exempt entity.--In the 
        case of a vehicle the use of which is described in 
        paragraph (3) or (4) of section 50(b) and which is not 
        subject to a lease, the person who sold such vehicle to 
        the person or entity using such vehicle shall be 
        treated as the taxpayer that placed such vehicle in 
        service, but only if such person clearly discloses to 
        such person or entity in a document the amount of any 
        credit allowable under subsection (a) with respect to 
        such vehicle (determined without regard to subsection 
        (c)).
            ``(4) Property used outside united states not 
        qualified.--No credit shall be allowable under 
        subsection (a) with respect to any property referred to 
        in section 50(b)(1).
            ``(5) Recapture.--The Secretary shall, by 
        regulations, provide for recapturing the benefit of any 
        credit allowable under subsection (a) with respect to 
        any property which ceases to be property eligible for 
        such credit.
            ``(6) Election not to take credit.--No credit shall 
        be allowed under subsection (a) for any vehicle if the 
        taxpayer elects to not have this section apply to such 
        vehicle.
            ``(7) Interaction with air quality and motor 
        vehicle safety standards.--A motor vehicle shall not be 
        considered eligible for a credit under this section 
        unless such vehicle is in compliance with--
                    ``(A) the applicable provisions of the 
                Clean Air Act for the applicable make and model 
                year of the vehicle (or applicable air quality 
                provisions of State law in the case of a State 
                which has adopted such provision under a waiver 
                under section 209(b) of the Clean Air Act), and
                    ``(B) the motor vehicle safety provisions 
                of sections 30101 through 30169 of title 49, 
                United States Code.''.
    (b) Conforming Amendments.--
            (1) Section 30B(d)(3)(D) is amended by striking 
        ``subsection (d) thereof'' and inserting ``subsection 
        (c) thereof''.
            (2) Section 38(b)(35) is amended by striking 
        ``30D(d)(1)'' and inserting ``30D(c)(1)''.
            (3) Section 1016(a)(25) is amended by striking 
        ``section 30D(e)(4)'' and inserting ``section 
        30D(f)(1)''.
            (4) Section 6501(m) is amended by striking 
        ``section 30D(e)(9)'' and inserting ``section 
        30D(e)(4)''.
    (c) Effective Date.--The amendments made by this section 
shall apply to vehicles acquired after December 31, 2009.

SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Section 30 is amended to read as follows:

``SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to 10 percent of the cost of any qualified 
plug-in electric vehicle placed in service by the taxpayer 
during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--The amount of the 
credit allowed under subsection (a) with respect to any vehicle 
shall not exceed $2,500.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general 
        business credit.--So much of the credit which would be 
        allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) that is 
        attributable to property of a character subject to an 
        allowance for depreciation shall be treated as a credit 
        listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this 
                title, the credit allowed under subsection (a) 
                for any taxable year (determined after 
                application of paragraph (1)) shall be treated 
                as a credit allowable under subpart A for such 
                taxable year.
                    ``(B) Limitation based on amount of tax.--
                In the case of a taxable year to which section 
                26(a)(2) does not apply, the credit allowed 
                under subsection (a) for any taxable year 
                (determined after application of paragraph (1)) 
                shall not exceed the excess of--
                            ``(i) the sum of the regular tax 
                        liability (as defined in section 26(b)) 
                        plus the tax imposed by section 55, 
                        over
                            ``(ii) the sum of the credits 
                        allowable under subpart A (other than 
                        this section and sections 23, 25D, and 
                        30D) and section 27 for the taxable 
                        year.
    ``(d) Qualified Plug-in Electric Vehicle.--For purposes of 
this section--
            ``(1) In general.--The term `qualified plug-in 
        electric vehicle' means a specified vehicle--
                    ``(A) the original use of which commences 
                with the taxpayer,
                    ``(B) which is acquired for use or lease by 
                the taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which is manufactured primarily for 
                use on public streets, roads, and highways,
                    ``(E) which has a gross vehicle weight 
                rating of less than 14,000 pounds, and
                    ``(F) which is propelled to a significant 
                extent by an electric motor which draws 
                electricity from a battery which--
                            ``(i) has a capacity of not less 
                        than 4 kilowatt hours (2.5 kilowatt 
                        hours in the case of a vehicle with 2 
                        or 3 wheels), and
                            ``(ii) is capable of being 
                        recharged from an external source of 
                        electricity.
            ``(2) Specified vehicle.--The term `specified 
        vehicle' means any vehicle which--
                    ``(A) is a low speed vehicle within the 
                meaning of section 571.3 of title 49, Code of 
                Federal Regulations (as in effect on the date 
                of the enactment of the American Recovery and 
                Reinvestment Tax Act of 2009), or
                    ``(B) has 2 or 3 wheels.
            ``(3) Manufacturer.--The term `manufacturer' has 
        the meaning given such term in regulations prescribed 
        by the Administrator of the Environmental Protection 
        Agency for purposes of the administration of title II 
        of the Clean Air Act (42 U.S.C. 7521 et seq.).
            ``(4) Battery capacity.--The term `capacity' means, 
        with respect to any battery, the quantity of 
        electricity which the battery is capable of storing, 
        expressed in kilowatt hours, as measured from a 100 
        percent state of charge to a 0 percent state of charge.
    ``(e) Special Rules.--
            ``(1) Basis reduction.--For purposes of this 
        subtitle, the basis of any property for which a credit 
        is allowable under subsection (a) shall be reduced by 
        the amount of such credit so allowed.
            ``(2) No double benefit.--The amount of any 
        deduction or other credit allowable under this chapter 
        for a new qualified plug-in electric drive motor 
        vehicle shall be reduced by the amount of credit 
        allowable under subsection (a) for such vehicle.
            ``(3) Property used by tax-exempt entity.--In the 
        case of a vehicle the use of which is described in 
        paragraph (3) or (4) of section 50(b) and which is not 
        subject to a lease, the person who sold such vehicle to 
        the person or entity using such vehicle shall be 
        treated as the taxpayer that placed such vehicle in 
        service, but only if such person clearly discloses to 
        such person or entity in a document the amount of any 
        credit allowable under subsection (a) with respect to 
        such vehicle (determined without regard to subsection 
        (c)).
            ``(4) Property used outside united states not 
        qualified.--No credit shall be allowable under 
        subsection (a) with respect to any property referred to 
        in section 50(b)(1).
            ``(5) Recapture.--The Secretary shall, by 
        regulations, provide for recapturing the benefit of any 
        credit allowable under subsection (a) with respect to 
        any property which ceases to be property eligible for 
        such credit.
            ``(6) Election not to take credit.--No credit shall 
        be allowed under subsection (a) for any vehicle if the 
        taxpayer elects to not have this section apply to such 
        vehicle.
    ``(f) Termination.--This section shall not apply to any 
vehicle acquired after December 31, 2011.''.
    (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B) is amended by inserting 
        ``30,'' after ``25D,''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30,'' after ``25D,''.
            (C) Section 25B(g)(2) is amended by inserting 
        ``30,'' after ``25D,''.
            (D) Section 26(a)(1) is amended by inserting 
        ``30,'' after ``25D,''.
            (E) Section 904(i) is amended by striking ``and 
        25B'' and inserting ``25B, 30, and 30D''.
            (F) Section 1400C(d)(2) is amended by striking 
        ``and 25D'' and inserting ``25D, and 30''.
            (2) Paragraph (1) of section 30B(h) is amended to 
        read as follows:
            ``(1) Motor vehicle.--The term `motor vehicle' 
        means any vehicle which is manufactured primarily for 
        use on public streets, roads, and highways (not 
        including a vehicle operated exclusively on a rail or 
        rails) and which has at least 4 wheels.''.
            (3) Section 30C(d)(2)(A) is amended by striking ``, 
        30,''.
            (4)(A) Section 53(d)(1)(B) is amended by striking 
        clause (iii) and redesignating clause (iv) as clause 
        (iii).
            (B) Subclause (II) of section 53(d)(1)(B)(iii), as 
        so redesignated, is amended by striking ``increased in 
        the manner provided in clause (iii)''.
            (5) Section 55(c)(3) is amended by striking 
        ``30(b)(3),''.
            (6) Section 1016(a)(25) is amended by striking 
        ``section 30(d)(1)'' and inserting ``section 
        30(e)(1)''.
            (7) Section 6501(m) is amended by striking 
        ``section 30(d)(4)'' and inserting ``section 
        30(e)(6)''.
            (8) The item in the table of sections for subpart B 
        of part IV of subchapter A of chapter 1 is amended to 
        read as follows:

``Sec. 30. Certain plug-in electric vehicles.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to vehicles acquired after the date of the 
enactment of this Act.
    (d) Transitional Rule.--In the case of a vehicle acquired 
after the date of the enactment of this Act and before January 
1, 2010, no credit shall be allowed under section 30 of the 
Internal Revenue Code of 1986, as added by this section, if 
credit is allowable under section 30D of such Code with respect 
to such vehicle.
    (e) Application of EGTRRA Sunset.--The amendment made by 
subsection (b)(1)(A) shall be subject to title IX of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 in 
the same manner as the provision of such Act to which such 
amendment relates.

SEC. 1143. CONVERSION KITS.

    (a) In General.--Section 30B (relating to alternative motor 
vehicle credit) is amended by redesignating subsections (i) and 
(j) as subsections (j) and (k), respectively, and by inserting 
after subsection (h) the following new subsection:
    ``(i) Plug-in Conversion Credit.--
            ``(1) In general.--For purposes of subsection (a), 
        the plug-in conversion credit determined under this 
        subsection with respect to any motor vehicle which is 
        converted to a qualified plug-in electric drive motor 
        vehicle is 10 percent of so much of the cost of the 
        converting such vehicle as does not exceed $40,000.
            ``(2) Qualified plug-in electric drive motor 
        vehicle.--For purposes of this subsection, the term 
        `qualified plug-in electric drive motor vehicle' means 
        any new qualified plug-in electric drive motor vehicle 
        (as defined in section 30D, determined without regard 
        to whether such vehicle is made by a manufacturer or 
        whether the original use of such vehicle commences with 
        the taxpayer).
            ``(3) Credit allowed in addition to other 
        credits.--The credit allowed under this subsection 
        shall be allowed with respect to a motor vehicle 
        notwithstanding whether a credit has been allowed with 
        respect to such motor vehicle under this section (other 
        than this subsection) in any preceding taxable year.
            ``(4) Termination.--This subsection shall not apply 
        to conversions made after December 31, 2011.''.
    (b) Credit Treated as Part of Alternative Motor Vehicle 
Credit.--Section 30B(a) is amended by striking ``and'' at the 
end of paragraph (3), by striking the period at the end of 
paragraph (4) and inserting ``, and'', and by adding at the end 
the following new paragraph:
            ``(5) the plug-in conversion credit determined 
        under subsection (i).''.
    (c) No Recapture for Vehicles Converted to Qualified Plug-
in Electric Drive Motor Vehicles.--Paragraph (8) of section 
30B(h) is amended by adding at the end the following: ``, 
except that no benefit shall be recaptured if such property 
ceases to be eligible for such credit by reason of conversion 
to a qualified plug-in electric drive motor vehicle.''.
    (d) Effective Date.--The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act.

SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL 
                    CREDIT ALLOWED AGAINST AMT.

    (a) In General.--Paragraph (2) of section 30B(g) is amended 
to read as follows:
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this 
                title, the credit allowed under subsection (a) 
                for any taxable year (determined after 
                application of paragraph (1)) shall be treated 
                as a credit allowable under subpart A for such 
                taxable year.
                    ``(B) Limitation based on amount of tax.--
                In the case of a taxable year to which section 
                26(a)(2) does not apply, the credit allowed 
                under subsection (a) for any taxable year 
                (determined after application of paragraph (1)) 
                shall not exceed the excess of--
                            ``(i) the sum of the regular tax 
                        liability (as defined in section 26(b)) 
                        plus the tax imposed by section 55, 
                        over
                            ``(ii) the sum of the credits 
                        allowable under subpart A (other than 
                        this section and sections 23, 25D, 30, 
                        and 30D) and section 27 for the taxable 
                        year.''.
    (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by this Act, 
        is amended by inserting ``30B,'' after ``30,''.
            (B) Section 25(e)(1)(C)(ii), as amended by this 
        Act, is amended by inserting ``30B,'' after ``30,''.
            (C) Section 25B(g)(2), as amended by this Act, is 
        amended by inserting ``30B,'' after ``30,''.
            (D) Section 26(a)(1), as amended by this Act, is 
        amended by inserting ``30B,'' after ``30,''.
            (E) Section 904(i), as amended by this Act, is 
        amended by inserting ``30B,'' after ``30''.
            (F) Section 1400C(d)(2), as amended by this Act, is 
        amended by striking ``and 30'' and inserting ``30, and 
        30B''.
            (2) Section 30C(d)(2)(A), as amended by this Act, 
        is amended by striking ``sections 27 and 30B'' and 
        inserting ``section 27''.
            (3) Section 55(c)(3) is amended by striking 
        ``30B(g)(2),''.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.
    (d) Application of EGTRRA Sunset.--The amendment made by 
subsection (b)(1)(A) shall be subject to title IX of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 in 
the same manner as the provision of such Act to which such 
amendment relates.

           PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND 
                    TRANSIT PASSES.

    (a) In General.--Paragraph (2) of section 132(f) is amended 
by adding at the end the following flush sentence:
        ``In the case of any month beginning on or after the 
        date of the enactment of this sentence and before 
        January 1, 2011, subparagraph (A) shall be applied as 
        if the dollar amount therein were the same as the 
        dollar amount in effect for such month under 
        subparagraph (B).''.
    (b) Effective Date.--The amendment made by this section 
shall apply to months beginning on or after the date of the 
enactment of this section.

                Subtitle C--Tax Incentives for Business

                PART I--TEMPORARY INVESTMENT INCENTIVES

SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

    (a) Extension of Special Allowance.--
            (1) In general.--Paragraph (2) of section 168(k) is 
        amended--
                    (A) by striking ``January 1, 2010'' and 
                inserting ``January 1, 2011'', and
                    (B) by striking ``January 1, 2009'' each 
                place it appears and inserting ``January 1, 
                2010''.
            (2) Conforming amendments.--
                    (A) The heading for subsection (k) of 
                section 168 is amended by striking ``January 1, 
                2009'' and inserting ``January 1, 2010''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) is amended by striking ``pre-
                january 1, 2009'' and inserting ``pre-january 
                1, 2010''.
                    (C) Subparagraph (B) of section 168(l)(5) 
                is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (D) Subparagraph (C) of section 168(n)(2) 
                is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (E) Subparagraph (B) of section 1400N(d)(3) 
                is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
            (3) Technical amendments.--
                    (A) Subparagraph (D) of section 168(k)(4) 
                is amended--
                            (i) by striking ``and'' at the end 
                        of clause (i),
                            (ii) by redesignating clause (ii) 
                        as clause (iii), and
                            (iii) by inserting after clause (i) 
                        the following new clause:
                            ``(ii) `April 1, 2008' shall be 
                        substituted for `January 1, 2008' in 
                        subparagraph (A)(iii)(I) thereof, 
                        and''.
                    (B) Subparagraph (A) of section 6211(b)(4) 
                is amended by inserting ``168(k)(4),'' after 
                ``53(e),''.
    (b) Extension of Election To Accelerate the AMT and 
Research Credits in Lieu of Bonus Depreciation.--
            (1) In general.--Section 168(k)(4) (relating to 
        election to accelerate the AMT and research credits in 
        lieu of bonus depreciation) is amended--
                    (A) by striking ``2009'' and inserting 
                ``2010'' in subparagraph (D)(iii) (as 
                redesignated by subsection (a)(3)), and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(H) Special rules for extension 
                property.--
                            ``(i) Taxpayers previously electing 
                        acceleration.--In the case of a 
                        taxpayer who made the election under 
                        subparagraph (A) for its first taxable 
                        year ending after March 31, 2008--
                                    ``(I) the taxpayer may 
                                elect not to have this 
                                paragraph apply to extension 
                                property, but
                                    ``(II) if the taxpayer does 
                                not make the election under 
                                subclause (I), in applying this 
                                paragraph to the taxpayer a 
                                separate bonus depreciation 
                                amount, maximum amount, and 
                                maximum increase amount shall 
                                be computed and applied to 
                                eligible qualified property 
                                which is extension property and 
                                to eligible qualified property 
                                which is not extension 
                                property.
                            ``(ii) Taxpayers not previously 
                        electing acceleration.--In the case of 
                        a taxpayer who did not make the 
                        election under subparagraph (A) for its 
                        first taxable year ending after March 
                        31, 2008--
                                    ``(I) the taxpayer may 
                                elect to have this paragraph 
                                apply to its first taxable year 
                                ending after December 31, 2008, 
                                and each subsequent taxable 
                                year, and
                                    ``(II) if the taxpayer 
                                makes the election under 
                                subclause (I), this paragraph 
                                shall only apply to eligible 
                                qualified property which is 
                                extension property.
                            ``(iii) Extension property.--For 
                        purposes of this subparagraph, the term 
                        `extension property' means property 
                        which is eligible qualified property 
                        solely by reason of the extension of 
                        the application of the special 
                        allowance under paragraph (1) pursuant 
                        to the amendments made by section 
                        1201(a) of the American Recovery and 
                        Reinvestment Tax Act of 2009 (and the 
                        application of such extension to this 
                        paragraph pursuant to the amendment 
                        made by section 1201(b)(1) of such 
                        Act).''.
            (2) Technical amendment.--Section 6211(b)(4)(A) is 
        amended by inserting ``168(k)(4),'' after ``53(e),''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall apply to 
        property placed in service after December 31, 2008, in 
        taxable years ending after such date.
            (2) Technical amendments.--The amendments made by 
        subsections (a)(3) and (b)(2) shall apply to taxable 
        years ending after March 31, 2008.

SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
                    DEPRECIABLE BUSINESS ASSETS.

    (a) In General.--Paragraph (7) of section 179(b) is 
amended--
            (1) by striking ``2008'' and inserting ``2008, or 
        2009'', and
            (2) by striking ``2008'' in the heading thereof and 
        inserting ``2008, and 2009''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

                   PART II--SMALL BUSINESS PROVISIONS

SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.

    (a) In General.--Subparagraph (H) of section 172(b)(1) is 
amended to read as follows:
                    ``(H) Carryback for 2008 net operating 
                losses of small businesses.--
                            ``(i) In general.--If an eligible 
                        small business elects the application 
                        of this subparagraph with respect to an 
                        applicable 2008 net operating loss--
                                    ``(I) subparagraph (A)(i) 
                                shall be applied by 
                                substituting any whole number 
                                elected by the taxpayer which 
                                is more than 2 and less than 6 
                                for `2',
                                    ``(II) subparagraph (E)(ii) 
                                shall be applied by 
                                substituting the whole number 
                                which is one less than the 
                                whole number substituted under 
                                subclause (I) for `2', and
                                    ``(III) subparagraph (F) 
                                shall not apply.
                            ``(ii) Applicable 2008 net 
                        operating loss.--For purposes of this 
                        subparagraph, the term `applicable 2008 
                        net operating loss' means--
                                    ``(I) the taxpayer's net 
                                operating loss for any taxable 
                                year ending in 2008, or
                                    ``(II) if the taxpayer 
                                elects to have this subclause 
                                apply in lieu of subclause (I), 
                                the taxpayer's net operating 
                                loss for any taxable year 
                                beginning in 2008.
                            ``(iii) Election.--Any election 
                        under this subparagraph shall be made 
                        in such manner as may be prescribed by 
                        the Secretary, and shall be made by the 
                        due date (including extension of time) 
                        for filing the taxpayer's return for 
                        the taxable year of the net operating 
                        loss. Any such election, once made, 
                        shall be irrevocable. Any election 
                        under this subparagraph may be made 
                        only with respect to 1 taxable year.
                            ``(iv) Eligible small business.--
                        For purposes of this subparagraph, the 
                        term `eligible small business' has the 
                        meaning given such term by subparagraph 
                        (F)(iii), except that in applying such 
                        subparagraph, section 448(c) shall be 
                        applied by substituting `$15,000,000' 
                        for `$5,000,000' each place it 
                        appears.''.
    (b) Conforming Amendment.--Section 172 is amended by 
striking subsection (k) and by redesignating subsection (l) as 
subsection (k).
    (c) Anti-Abuse Rules.--The Secretary of Treasury or the 
Secretary's designee shall prescribe such rules as are 
necessary to prevent the abuse of the purposes of the 
amendments made by this section, including anti-stuffing rules, 
anti-churning rules (including rules relating to sale-
leasebacks), and rules similar to the rules under section 1091 
of the Internal Revenue Code of 1986 relating to losses from 
wash sales.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in 
        this subsection, the amendments made by this section 
        shall apply to net operating losses arising in taxable 
        years ending after December 31, 2007.
            (2) Transitional rule.--In the case of a net 
        operating loss for a taxable year ending before the 
        date of the enactment of this Act--
                    (A) any election made under section 
                172(b)(3) of the Internal Revenue Code of 1986 
                with respect to such loss may (notwithstanding 
                such section) be revoked before the applicable 
                date,
                    (B) any election made under section 
                172(b)(1)(H) of such Code with respect to such 
                loss shall (notwithstanding such section) be 
                treated as timely made if made before the 
                applicable date, and
                    (C) any application under section 6411(a) 
                of such Code with respect to such loss shall be 
                treated as timely filed if filed before the 
                applicable date.
        For purposes of this paragraph, the term ``applicable 
        date'' means the date which is 60 days after the date 
        of the enactment of this Act.

SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR 
                    CERTAIN SMALL BUSINESSES.

    Paragraph (1) of section 6654(d) is amended by adding at 
the end the following new subparagraph:
                    ``(D) Special rule for 2009.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (C), in the case of any 
                        taxable year beginning in 2009, clause 
                        (ii) of subparagraph (B) shall be 
                        applied to any qualified individual by 
                        substituting `90 percent' for `100 
                        percent'.
                            ``(ii) Qualified individual.--For 
                        purposes of this subparagraph, the term 
                        `qualified individual' means any 
                        individual if--
                                    ``(I) the adjusted gross 
                                income shown on the return of 
                                such individual for the 
                                preceding taxable year is less 
                                than $500,000, and
                                    ``(II) such individual 
                                certifies that more than 50 
                                percent of the gross income 
                                shown on the return of such 
                                individual for the preceding 
                                taxable year was income from a 
                                small business.
                        A certification under subclause (II) 
                        shall be in such form and manner and 
                        filed at such time as the Secretary may 
                        by regulations prescribe.
                            ``(iii) Income from a small 
                        business.--For purposes of clause (ii), 
                        income from a small business means, 
                        with respect to any individual, income 
                        from a trade or business the average 
                        number of employees of which was less 
                        than 500 employees for the calendar 
                        year ending with or within the 
                        preceding taxable year of the 
                        individual.
                            ``(iv) Separate returns.--In the 
                        case of a married individual (within 
                        the meaning of section 7703) who files 
                        a separate return for the taxable year 
                        for which the amount of the installment 
                        is being determined, clause (ii)(I) 
                        shall be applied by substituting 
                        `$250,000' for `$500,000'.
                            ``(v) Estates and trusts.--In the 
                        case of an estate or trust, adjusted 
                        gross income shall be determined as 
                        provided in section 67(e).''.

                   PART III--INCENTIVES FOR NEW JOBS

SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED 
                    YOUTH.

    (a) In General.--Subsection (d) of section 51 is amended by 
adding at the end the following new paragraph:
            ``(14) Credit allowed for unemployed veterans and 
        disconnected youth hired in 2009 or 2010.--
                    ``(A) In general.--Any unemployed veteran 
                or disconnected youth who begins work for the 
                employer during 2009 or 2010 shall be treated 
                as a member of a targeted group for purposes of 
                this subpart.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Unemployed veteran.--The term 
                        `unemployed veteran' means any veteran 
                        (as defined in paragraph (3)(B), 
                        determined without regard to clause 
                        (ii) thereof) who is certified by the 
                        designated local agency as--
                                    ``(I) having been 
                                discharged or released from 
                                active duty in the Armed Forces 
                                at any time during the 5-year 
                                period ending on the hiring 
                                date, and
                                    ``(II) being in receipt of 
                                unemployment compensation under 
                                State or Federal law for not 
                                less than 4 weeks during the 1-
                                year period ending on the 
                                hiring date.
                            ``(ii) Disconnected youth.--The 
                        term `disconnected youth' means any 
                        individual who is certified by the 
                        designated local agency--
                                    ``(I) as having attained 
                                age 16 but not age 25 on the 
                                hiring date,
                                    ``(II) as not regularly 
                                attending any secondary, 
                                technical, or post-secondary 
                                school during the 6-month 
                                period preceding the hiring 
                                date,
                                    ``(III) as not regularly 
                                employed during such 6-month 
                                period, and
                                    ``(IV) as not readily 
                                employable by reason of lacking 
                                a sufficient number of basic 
                                skills.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to individuals who begin work for the employer 
after December 31, 2008.

              PART IV--RULES RELATING TO DEBT INSTRUMENTS

SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM 
                    BUSINESS INDEBTEDNESS DISCHARGED BY THE 
                    REACQUISITION OF A DEBT INSTRUMENT.

    (a) In General.--Section 108 (relating to income from 
discharge of indebtedness) is amended by adding at the end the 
following new subsection:
    ``(i) Deferral and Ratable Inclusion of Income Arising From 
Business Indebtedness Discharged by the Reacquisition of a Debt 
Instrument.--
            ``(1) In general.--At the election of the taxpayer, 
        income from the discharge of indebtedness in connection 
        with the reacquisition after December 31, 2008, and 
        before January 1, 2011, of an applicable debt 
        instrument shall be includible in gross income ratably 
        over the 5-taxable-year period beginning with--
                    ``(A) in the case of a reacquisition 
                occurring in 2009, the fifth taxable year 
                following the taxable year in which the 
                reacquisition occurs, and
                    ``(B) in the case of a reacquisition 
                occurring in 2010, the fourth taxable year 
                following the taxable year in which the 
                reacquisition occurs.
            ``(2) Deferral of deduction for original issue 
        discount in debt for debt exchanges.--
                    ``(A) In general.--If, as part of a 
                reacquisition to which paragraph (1) applies, 
                any debt instrument is issued for the 
                applicable debt instrument being reacquired (or 
                is treated as so issued under subsection (e)(4) 
                and the regulations thereunder) and there is 
                any original issue discount determined under 
                subpart A of part V of subchapter P of this 
                chapter with respect to the debt instrument so 
                issued--
                            ``(i) except as provided in clause 
                        (ii), no deduction otherwise allowable 
                        under this chapter shall be allowed to 
                        the issuer of such debt instrument with 
                        respect to the portion of such original 
                        issue discount which--
                                    ``(I) accrues before the 
                                1st taxable year in the 5-
                                taxable-year period in which 
                                income from the discharge of 
                                indebtedness attributable to 
                                the reacquisition of the debt 
                                instrument is includible under 
                                paragraph (1), and
                                    ``(II) does not exceed the 
                                income from the discharge of 
                                indebtedness with respect to 
                                the debt instrument being 
                                reacquired, and
                            ``(ii) the aggregate amount of 
                        deductions disallowed under clause (i) 
                        shall be allowed as a deduction ratably 
                        over the 5-taxable-year period 
                        described in clause (i)(I).
                If the amount of the original issue discount 
                accruing before such 1st taxable year exceeds 
                the income from the discharge of indebtedness 
                with respect to the applicable debt instrument 
                being reacquired, the deductions shall be 
                disallowed in the order in which the original 
                issue discount is accrued.
                    ``(B) Deemed debt for debt exchanges.--For 
                purposes of subparagraph (A), if any debt 
                instrument is issued by an issuer and the 
                proceeds of such debt instrument are used 
                directly or indirectly by the issuer to 
                reacquire an applicable debt instrument of the 
                issuer, the debt instrument so issued shall be 
                treated as issued for the debt instrument being 
                reacquired. If only a portion of the proceeds 
                from a debt instrument are so used, the rules 
                of subparagraph (A) shall apply to the portion 
                of any original issue discount on the newly 
                issued debt instrument which is equal to the 
                portion of the proceeds from such instrument 
                used to reacquire the outstanding instrument.
            ``(3) Applicable debt instrument.--For purposes of 
        this subsection--
                    ``(A) Applicable debt instrument.--The term 
                `applicable debt instrument' means any debt 
                instrument which was issued by--
                            ``(i) a C corporation, or
                            ``(ii) any other person in 
                        connection with the conduct of a trade 
                        or business by such person.
                    ``(B) Debt instrument.--The term `debt 
                instrument' means a bond, debenture, note, 
                certificate, or any other instrument or 
                contractual arrangement constituting 
                indebtedness (within the meaning of section 
                1275(a)(1)).
            ``(4) Reacquisition.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `reacquisition' 
                means, with respect to any applicable debt 
                instrument, any acquisition of the debt 
                instrument by--
                            ``(i) the debtor which issued (or 
                        is otherwise the obligor under) the 
                        debt instrument, or
                            ``(ii) a related person to such 
                        debtor.
                    ``(B) Acquisition.--The term `acquisition' 
                shall, with respect to any applicable debt 
                instrument, include an acquisition of the debt 
                instrument for cash, the exchange of the debt 
                instrument for another debt instrument 
                (including an exchange resulting from a 
                modification of the debt instrument), the 
                exchange of the debt instrument for corporate 
                stock or a partnership interest, and the 
                contribution of the debt instrument to capital. 
                Such term shall also include the complete 
                forgiveness of the indebtedness by the holder 
                of the debt instrument.
            ``(5) Other definitions and rules.--For purposes of 
        this subsection--
                    ``(A) Related person.--The determination of 
                whether a person is related to another person 
                shall be made in the same manner as under 
                subsection (e)(4).
                    ``(B) Election.--
                            ``(i) In general.--An election 
                        under this subsection with respect to 
                        any applicable debt instrument shall be 
                        made by including with the return of 
                        tax imposed by chapter 1 for the 
                        taxable year in which the reacquisition 
                        of the debt instrument occurs a 
                        statement which--
                                    ``(I) clearly identifies 
                                such instrument, and
                                    ``(II) includes the amount 
                                of income to which paragraph 
                                (1) applies and such other 
                                information as the Secretary 
                                may prescribe.
                            ``(ii) Election irrevocable.--Such 
                        election, once made, is irrevocable.
                            ``(iii) Pass-thru entities.--In the 
                        case of a partnership, S corporation, 
                        or other pass-thru entity, the election 
                        under this subsection shall be made by 
                        the partnership, the S corporation, or 
                        other entity involved.
                    ``(C) Coordination with other exclusions.--
                If a taxpayer elects to have this subsection 
                apply to an applicable debt instrument, 
                subparagraphs (A), (B), (C), and (D) of 
                subsection (a)(1) shall not apply to the income 
                from the discharge of such indebtedness for the 
                taxable year of the election or any subsequent 
                taxable year.
                    ``(D) Acceleration of deferred items.--
                            ``(i) In general.--In the case of 
                        the death of the taxpayer, the 
                        liquidation or sale of substantially 
                        all the assets of the taxpayer 
                        (including in a title 11 or similar 
                        case), the cessation of business by the 
                        taxpayer, or similar circumstances, any 
                        item of income or deduction which is 
                        deferred under this subsection (and has 
                        not previously been taken into account) 
                        shall be taken into account in the 
                        taxable year in which such event occurs 
                        (or in the case of a title 11 or 
                        similar case, the day before the 
                        petition is filed).
                            ``(ii) Special rule for pass-thru 
                        entities.--The rule of clause (i) shall 
                        also apply in the case of the sale or 
                        exchange or redemption of an interest 
                        in a partnership, S corporation, or 
                        other pass-thru entity by a partner, 
                        shareholder, or other person holding an 
                        ownership interest in such entity.
            ``(6) Special rule for partnerships.--In the case 
        of a partnership, any income deferred under this 
        subsection shall be allocated to the partners in the 
        partnership immediately before the discharge in the 
        manner such amounts would have been included in the 
        distributive shares of such partners under section 704 
        if such income were recognized at such time. Any 
        decrease in a partner's share of partnership 
        liabilities as a result of such discharge shall not be 
        taken into account for purposes of section 752 at the 
        time of the discharge to the extent it would cause the 
        partner to recognize gain under section 731. Any 
        decrease in partnership liabilities deferred under the 
        preceding sentence shall be taken into account by such 
        partner at the same time, and to the extent remaining 
        in the same amount, as income deferred under this 
        subsection is recognized.
            ``(7) Secretarial authority.--The Secretary may 
        prescribe such regulations, rules, or other guidance as 
        may be necessary or appropriate for purposes of 
        applying this subsection, including--
                    ``(A) extending the application of the 
                rules of paragraph (5)(D) to other 
                circumstances where appropriate,
                    ``(B) requiring reporting of the election 
                (and such other information as the Secretary 
                may require) on returns of tax for subsequent 
                taxable years, and
                    ``(C) rules for the application of this 
                subsection to partnerships, S corporations, and 
                other pass-thru entities, including for the 
                allocation of deferred deductions.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to discharges in taxable years ending after 
December 31, 2008.

SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON 
                    CERTAIN HIGH YIELD OBLIGATIONS.

    (a) Suspension of Special Rules.--Section 163(e)(5) 
(relating to special rules for original issue discount on 
certain high yield obligations) is amended by redesignating 
subparagraph (F) as subparagraph (G) and by inserting after 
subparagraph (E) the following new subparagraph:
                    ``(F) Suspension of application of 
                paragraph.--
                            ``(i) Temporary suspension.--This 
                        paragraph shall not apply to any 
                        applicable high yield discount 
                        obligation issued during the period 
                        beginning on September 1, 2008, and 
                        ending on December 31, 2009, in 
                        exchange (including an exchange 
                        resulting from a modification of the 
                        debt instrument) for an obligation 
                        which is not an applicable high yield 
                        discount obligation and the issuer (or 
                        obligor) of which is the same as the 
                        issuer (or obligor) of such applicable 
                        high yield discount obligation. The 
                        preceding sentence shall not apply to 
                        any obligation the interest on which is 
                        interest described in section 871(h)(4) 
                        (without regard to subparagraph (D) 
                        thereof) or to any obligation issued to 
                        a related person (within the meaning of 
                        section 108(e)(4)).
                            ``(ii) Successive application.--Any 
                        obligation to which clause (i) applies 
                        shall not be treated as an applicable 
                        high yield discount obligation for 
                        purposes of applying this subparagraph 
                        to any other obligation issued in 
                        exchange for such obligation.
                            ``(iii) Secretarial authority to 
                        suspend application.--The Secretary may 
                        apply this paragraph with respect to 
                        debt instruments issued in periods 
                        following the period described in 
                        clause (i) if the Secretary determines 
                        that such application is appropriate in 
                        light of distressed conditions in the 
                        debt capital markets.''.
    (b) Interest Rate Used in Determining High Yield 
Obligations.--The last sentence of section 163(i)(1) is 
amended--
            (1) by inserting ``(i)'' after ``regulation'', and
            (2) by inserting ``, or (ii) permit, on a temporary 
        basis, a rate to be used with respect to any debt 
        instrument which is higher than the applicable Federal 
        rate if the Secretary determines that such rate is 
        appropriate in light of distressed conditions in the 
        debt capital markets'' before the period at the end.
    (c) Effective Date.--
            (1) Suspension.--The amendments made by subsection 
        (a) shall apply to obligations issued after August 31, 
        2008, in taxable years ending after such date.
            (2) Interest rate authority.--The amendments made 
        by subsection (b) shall apply to obligations issued 
        after December 31, 2009, in taxable years ending after 
        such date.

                 PART V--QUALIFIED SMALL BUSINESS STOCK

SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK 
                    FOR 2009 AND 2010.

    (a) In General.--Section 1202(a) is amended by adding at 
the end the following new paragraph:
            ``(3) Special rules for 2009 and 2010.--In the case 
        of qualified small business stock acquired after the 
        date of the enactment of this paragraph and before 
        January 1, 2011--
                    ``(A) paragraph (1) shall be applied by 
                substituting `75 percent' for `50 percent', and
                    ``(B) paragraph (2) shall not apply.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to stock acquired after the date of the enactment 
of this Act.

                        PART VI--S CORPORATIONS

SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS 
                    TAX.

    (a) In General.--Paragraph (7) of section 1374(d) (relating 
to definitions and special rules) is amended to read as 
follows:
            ``(7) Recognition period.--
                    ``(A) In general.--The term `recognition 
                period' means the 10-year period beginning with 
                the 1st day of the 1st taxable year for which 
                the corporation was an S corporation.
                    ``(B) Special rule for 2009 and 2010.--In 
                the case of any taxable year beginning in 2009 
                or 2010, no tax shall be imposed on the net 
                recognized built-in gain of an S corporation if 
                the 7th taxable year in the recognition period 
                preceded such taxable year. The preceding 
                sentence shall be applied separately with 
                respect to any asset to which paragraph (8) 
                applies.
                    ``(C) Special rule for distributions to 
                shareholders.--For purposes of applying this 
                section to any amount includible in income by 
                reason of distributions to shareholders 
                pursuant to section 593(e)--
                            ``(i) subparagraph (A) shall be 
                        applied without regard to the phrase 
                        `10-year', and
                            ``(ii) subparagraph (B) shall not 
                        apply.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008.

             PART VII--RULES RELATING TO OWNERSHIP CHANGES

SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON 
                    CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP 
                    CHANGE.

    (a) Findings.--Congress finds as follows:
            (1) The delegation of authority to the Secretary of 
        the Treasury under section 382(m) of the Internal 
        Revenue Code of 1986 does not authorize the Secretary 
        to provide exemptions or special rules that are 
        restricted to particular industries or classes of 
        taxpayers.
            (2) Internal Revenue Service Notice 2008-83 is 
        inconsistent with the congressional intent in enacting 
        such section 382(m).
            (3) The legal authority to prescribe Internal 
        Revenue Service Notice 2008-83 is doubtful.
            (4) However, as taxpayers should generally be able 
        to rely on guidance issued by the Secretary of the 
        Treasury legislation is necessary to clarify the force 
        and effect of Internal Revenue Service Notice 2008-83 
        and restore the proper application under the Internal 
        Revenue Code of 1986 of the limitation on built-in 
        losses following an ownership change of a bank.
    (b) Determination of Force and Effect of Internal Revenue 
Service Notice 2008-83 Exempting Banks From Limitation on 
Certain Built-in Losses Following Ownership Change.--
            (1) In general.--Internal Revenue Service Notice 
        2008-83--
                    (A) shall be deemed to have the force and 
                effect of law with respect to any ownership 
                change (as defined in section 382(g) of the 
                Internal Revenue Code of 1986) occurring on or 
                before January 16, 2009, and
                    (B) shall have no force or effect with 
                respect to any ownership change after such 
                date.
            (2) Binding contracts.--Notwithstanding paragraph 
        (1), Internal Revenue Service Notice 2008-83 shall have 
        the force and effect of law with respect to any 
        ownership change (as so defined) which occurs after 
        January 16, 2009, if such change--
                    (A) is pursuant to a written binding 
                contract entered into on or before such date, 
                or
                    (B) is pursuant to a written agreement 
                entered into on or before such date and such 
                agreement was described on or before such date 
                in a public announcement or in a filing with 
                the Securities and Exchange Commission required 
                by reason of such ownership change.

SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF 
                    LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND 
                    CERTAIN BUILT-IN LOSSES.

    (a) In General.--Section 382 is amended by adding at the 
end the following new subsection:
    ``(n) Special Rule for Certain Ownership Changes.--
            ``(1) In general.--The limitation contained in 
        subsection (a) shall not apply in the case of an 
        ownership change which is pursuant to a restructuring 
        plan of a taxpayer which--
                    ``(A) is required under a loan agreement or 
                a commitment for a line of credit entered into 
                with the Department of the Treasury under the 
                Emergency Economic Stabilization Act of 2008, 
                and
                    ``(B) is intended to result in a 
                rationalization of the costs, capitalization, 
                and capacity with respect to the manufacturing 
                workforce of, and suppliers to, the taxpayer 
                and its subsidiaries.
            ``(2) Subsequent acquisitions.--Paragraph (1) shall 
        not apply in the case of any subsequent ownership 
        change unless such ownership change is described in 
        such paragraph.
            ``(3) Limitation based on control in corporation.--
                    ``(A) In general.--Paragraph (1) shall not 
                apply in the case of any ownership change if, 
                immediately after such ownership change, any 
                person (other than a voluntary employees' 
                beneficiary association under section 
                501(c)(9)) owns stock of the new loss 
                corporation possessing 50 percent or more of 
                the total combined voting power of all classes 
                of stock entitled to vote, or of the total 
                value of the stock of such corporation.
                    ``(B) Treatment of related persons.--
                            ``(i) In general.--Related persons 
                        shall be treated as a single person for 
                        purposes of this paragraph.
                            ``(ii) Related persons.--For 
                        purposes of clause (i), a person shall 
                        be treated as related to another person 
                        if--
                                    ``(I) such person bears a 
                                relationship to such other 
                                person described in section 
                                267(b) or 707(b), or
                                    ``(II) such persons are 
                                members of a group of persons 
                                acting in concert.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to ownership changes after the date of the 
enactment of this Act.

             Subtitle D--Manufacturing Recovery Provisions

SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL 
                    DEVELOPMENT BONDS TO FACILITIES MANUFACTURING 
                    INTANGIBLE PROPERTY.

    (a) In General.--Subparagraph (C) of section 144(a)(12) is 
amended--
            (1) by striking ``For purposes of this paragraph, 
        the term'' and inserting ``For purposes of this 
        paragraph--
                            ``(i) In general.--The term'', and
            (2) by striking the last sentence and inserting the 
        following new clauses:
                            ``(ii) Certain facilities 
                        included.--Such term includes 
                        facilities which are directly related 
                        and ancillary to a manufacturing 
                        facility (determined without regard to 
                        this clause) if--
                                    ``(I) such facilities are 
                                located on the same site as the 
                                manufacturing facility, and
                                    ``(II) not more than 25 
                                percent of the net proceeds of 
                                the issue are used to provide 
                                such facilities.
                            ``(iii) Special rules for bonds 
                        issued in 2009 and 2010.--In the case 
                        of any issue made after the date of 
                        enactment of this clause and before 
                        January 1, 2011, clause (ii) shall not 
                        apply and the net proceeds from a bond 
                        shall be considered to be used to 
                        provide a manufacturing facility if 
                        such proceeds are used to provide--
                                    ``(I) a facility which is 
                                used in the creation or 
                                production of intangible 
                                property which is described in 
                                section 197(d)(1)(C)(iii), or
                                    ``(II) a facility which is 
                                functionally related and 
                                subordinate to a manufacturing 
                                facility (determined without 
                                regard to this subclause) if 
                                such facility is located on the 
                                same site as the manufacturing 
                                facility.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES.

    (a) In General.--Section 46 (relating to amount of credit) 
is amended by striking ``and'' at the end of paragraph (3), by 
striking the period at the end of paragraph (4), and by adding 
at the end the following new paragraph:
            ``(5) the qualifying advanced energy project 
        credit.''.
    (b) Amount of Credit.--Subpart E of part IV of subchapter A 
of chapter 1 (relating to rules for computing investment 
credit) is amended by inserting after section 48B the following 
new section:

``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the 
qualifying advanced energy project credit for any taxable year 
is an amount equal to 30 percent of the qualified investment 
for such taxable year with respect to any qualifying advanced 
energy project of the taxpayer.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), 
        the qualified investment for any taxable year is the 
        basis of eligible property placed in service by the 
        taxpayer during such taxable year which is part of a 
        qualifying advanced energy project.
            ``(2) Certain qualified progress expenditures rules 
        made applicable.--Rules similar to the rules of 
        subsections (c)(4) and (d) of section 46 (as in effect 
        on the day before the enactment of the Revenue 
        Reconciliation Act of 1990) shall apply for purposes of 
        this section.
            ``(3) Limitation.--The amount which is treated for 
        all taxable years with respect to any qualifying 
        advanced energy project shall not exceed the amount 
        designated by the Secretary as eligible for the credit 
        under this section.
    ``(c) Definitions.--
            ``(1) Qualifying advanced energy project.--
                    ``(A) In general.--The term `qualifying 
                advanced energy project' means a project--
                            ``(i) which re-equips, expands, or 
                        establishes a manufacturing facility 
                        for the production of--
                                    ``(I) property designed to 
                                be used to produce energy from 
                                the sun, wind, geothermal 
                                deposits (within the meaning of 
                                section 613(e)(2)), or other 
                                renewable resources,
                                    ``(II) fuel cells, 
                                microturbines, or an energy 
                                storage system for use with 
                                electric or hybrid-electric 
                                motor vehicles,
                                    ``(III) electric grids to 
                                support the transmission of 
                                intermittent sources of 
                                renewable energy, including 
                                storage of such energy,
                                    ``(IV) property designed to 
                                capture and sequester carbon 
                                dioxide emissions,
                                    ``(V) property designed to 
                                refine or blend renewable fuels 
                                or to produce energy 
                                conservation technologies 
                                (including energy-conserving 
                                lighting technologies and smart 
                                grid technologies),
                                    ``(VI) new qualified plug-
                                in electric drive motor 
                                vehicles (as defined by section 
                                30D), qualified plug-in 
                                electric vehicles (as defined 
                                by section 30(d)), or 
                                components which are designed 
                                specifically for use with such 
                                vehicles, including electric 
                                motors, generators, and power 
                                control units, or
                                    ``(VII) other advanced 
                                energy property designed to 
                                reduce greenhouse gas emissions 
                                as may be determined by the 
                                Secretary, and
                            ``(ii) any portion of the qualified 
                        investment of which is certified by the 
                        Secretary under subsection (d) as 
                        eligible for a credit under this 
                        section.
                    ``(B) Exception.--Such term shall not 
                include any portion of a project for the 
                production of any property which is used in the 
                refining or blending of any transportation fuel 
                (other than renewable fuels).
            ``(2) Eligible property.--The term `eligible 
        property' means any property--
                    ``(A) which is necessary for the production 
                of property described in paragraph (1)(A)(i),
                    ``(B) which is--
                            ``(i) tangible personal property, 
                        or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components), but only if such property 
                        is used as an integral part of the 
                        qualified investment credit facility, 
                        and
                    ``(C) with respect to which depreciation 
                (or amortization in lieu of depreciation) is 
                allowable.
    ``(d) Qualifying Advanced Energy Project Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this section, 
                the Secretary, in consultation with the 
                Secretary of Energy, shall establish a 
                qualifying advanced energy project program to 
                consider and award certifications for qualified 
                investments eligible for credits under this 
                section to qualifying advanced energy project 
                sponsors.
                    ``(B) Limitation.--The total amount of 
                credits that may be allocated under the program 
                shall not exceed $2,300,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant 
                for certification under this paragraph shall 
                submit an application containing such 
                information as the Secretary may require during 
                the 2-year period beginning on the date the 
                Secretary establishes the program under 
                paragraph (1).
                    ``(B) Time to meet criteria for 
                certification.--Each applicant for 
                certification shall have 1 year from the date 
                of acceptance by the Secretary of the 
                application during which to provide to the 
                Secretary evidence that the requirements of the 
                certification have been met.
                    ``(C) Period of issuance.--An applicant 
                which receives a certification shall have 3 
                years from the date of issuance of the 
                certification in order to place the project in 
                service and if such project is not placed in 
                service by that time period, then the 
                certification shall no longer be valid.
            ``(3) Selection criteria.--In determining which 
        qualifying advanced energy projects to certify under 
        this section, the Secretary--
                    ``(A) shall take into consideration only 
                those projects where there is a reasonable 
                expectation of commercial viability, and
                    ``(B) shall take into consideration which 
                projects--
                            ``(i) will provide the greatest 
                        domestic job creation (both direct and 
                        indirect) during the credit period,
                            ``(ii) will provide the greatest 
                        net impact in avoiding or reducing air 
                        pollutants or anthropogenic emissions 
                        of greenhouse gases,
                            ``(iii) have the greatest potential 
                        for technological innovation and 
                        commercial deployment,
                            ``(iv) have the lowest levelized 
                        cost of generated or stored energy, or 
                        of measured reduction in energy 
                        consumption or greenhouse gas emission 
                        (based on costs of the full supply 
                        chain), and
                            ``(v) have the shortest project 
                        time from certification to completion.
            ``(4) Review and redistribution.--
                    ``(A) Review.--Not later than 4 years after 
                the date of enactment of this section, the 
                Secretary shall review the credits allocated 
                under this section as of such date.
                    ``(B) Redistribution.--The Secretary may 
                reallocate credits awarded under this section 
                if the Secretary determines that--
                            ``(i) there is an insufficient 
                        quantity of qualifying applications for 
                        certification pending at the time of 
                        the review, or
                            ``(ii) any certification made 
                        pursuant to paragraph (2) has been 
                        revoked pursuant to paragraph (2)(B) 
                        because the project subject to the 
                        certification has been delayed as a 
                        result of third party opposition or 
                        litigation to the proposed project.
                    ``(C) Reallocation.--If the Secretary 
                determines that credits under this section are 
                available for reallocation pursuant to the 
                requirements set forth in paragraph (2), the 
                Secretary is authorized to conduct an 
                additional program for applications for 
                certification.
            ``(5) Disclosure of allocations.--The Secretary 
        shall, upon making a certification under this 
        subsection, publicly disclose the identity of the 
        applicant and the amount of the credit with respect to 
        such applicant.
    ``(e) Denial of Double Benefit.--A credit shall not be 
allowed under this section for any qualified investment for 
which a credit is allowed under section 48, 48A, or 48B.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) is amended by striking 
        ``and'' at the end of clause (iii), by striking the 
        period at the end of clause (iv) and inserting ``, 
        and'', and by adding after clause (iv) the following 
        new clause:
                            ``(v) the basis of any property 
                        which is part of a qualifying advanced 
                        energy project under section 48C.''.
            (2) The table of sections for subpart E of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 48B the following 
        new item:

``48C. Qualifying advanced energy project credit.''.

    (d) Effective Date.--The amendments made by this section 
shall apply to periods after the date of the enactment of this 
Act, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation Act of 
1990).

                  Subtitle E--Economic Recovery Tools

SEC. 1401. RECOVERY ZONE BONDS.

    (a) In General.--Subchapter Y of chapter 1 is amended by 
adding at the end the following new part:

                    ``PART III--RECOVERY ZONE BONDS

``Sec. 1400U-1. Allocation of recovery zone bonds.
``Sec. 1400U-2. Recovery zone economic development bonds.
``Sec. 1400U-3. Recovery zone facility bonds.

``SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.

    ``(a) Allocations.--
            ``(1) In general.--
                    ``(A) General allocation.--The Secretary 
                shall allocate the national recovery zone 
                economic development bond limitation and the 
                national recovery zone facility bond limitation 
                among the States in the proportion that each 
                such State's 2008 State employment decline 
                bears to the aggregate of the 2008 State 
                employment declines for all of the States.
                    ``(B) Minimum allocation.--The Secretary 
                shall adjust the allocations under subparagraph 
                (A) for any calendar year for each State to the 
                extent necessary to ensure that no State 
                receives less than 0.9 percent of the national 
                recovery zone economic development bond 
                limitation and 0.9 percent of the national 
                recovery zone facility bond limitation.
            ``(2) 2008 state employment decline.--For purposes 
        of this subsection, the term `2008 State employment 
        decline' means, with respect to any State, the excess 
        (if any) of--
                    ``(A) the number of individuals employed in 
                such State determined for December 2007, over
                    ``(B) the number of individuals employed in 
                such State determined for December 2008.
            ``(3) Allocations by states.--
                    ``(A) In general.--Each State with respect 
                to which an allocation is made under paragraph 
                (1) shall reallocate such allocation among the 
                counties and large municipalities in such State 
                in the proportion to each such county's or 
                municipality's 2008 employment decline bears to 
                the aggregate of the 2008 employment declines 
                for all the counties and municipalities in such 
                State. A county or municipality may waive any 
                portion of an allocation made under this 
                subparagraph.
                    ``(B) Large municipalities.--For purposes 
                of subparagraph (A), the term `large 
                municipality' means a municipality with a 
                population of more than 100,000.
                    ``(C) Determination of local employment 
                declines.--For purposes of this paragraph, the 
                employment decline of any municipality or 
                county shall be determined in the same manner 
                as determining the State employment decline 
                under paragraph (2), except that in the case of 
                a municipality any portion of which is in a 
                county, such portion shall be treated as part 
                of such municipality and not part of such 
                county.
            ``(4) National limitations.--
                    ``(A) Recovery zone economic development 
                bonds.--There is a national recovery zone 
                economic development bond limitation of 
                $10,000,000,000.
                    ``(B) Recovery zone facility bonds.--There 
                is a national recovery zone facility bond 
                limitation of $15,000,000,000.
    ``(b) Recovery Zone.--For purposes of this part, the term 
`recovery zone' means--
            ``(1) any area designated by the issuer as having 
        significant poverty, unemployment, rate of home 
        foreclosures, or general distress,
            ``(2) any area designated by the issuer as 
        economically distressed by reason of the closure or 
        realignment of a military installation pursuant to the 
        Defense Base Closure and Realignment Act of 1990, and
            ``(3) any area for which a designation as an 
        empowerment zone or renewal community is in effect.

``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.

    ``(a) In General.--In the case of a recovery zone economic 
development bond--
            ``(1) such bond shall be treated as a qualified 
        bond for purposes of section 6431, and
            ``(2) subsection (b) of such section shall be 
        applied by substituting `45 percent' for `35 percent'.
    ``(b) Recovery Zone Economic Development Bond.--
            ``(1) In general.--For purposes of this section, 
        the term `recovery zone economic development bond' 
        means any build America bond (as defined in section 
        54AA(d)) issued before January 1, 2011, as part of 
        issue if--
                    ``(A) 100 percent of the excess of--
                            ``(i) the available project 
                        proceeds (as defined in section 54A) of 
                        such issue, over
                            ``(ii) the amounts in a reasonably 
                        required reserve (within the meaning of 
                        section 150(a)(3)) with respect to such 
                        issue,
                are to be used for one or more qualified 
                economic development purposes, and
                    ``(B) the issuer designates such bond for 
                purposes of this section.
            ``(2) Limitation on amount of bonds designated.--
        The maximum aggregate face amount of bonds which may be 
        designated by any issuer under paragraph (1) shall not 
        exceed the amount of the recovery zone economic 
        development bond limitation allocated to such issuer 
        under section 1400U-1.
    ``(c) Qualified Economic Development Purpose.--For purposes 
of this section, the term `qualified economic development 
purpose' means expenditures for purposes of promoting 
development or other economic activity in a recovery zone, 
including--
            ``(1) capital expenditures paid or incurred with 
        respect to property located in such zone,
            ``(2) expenditures for public infrastructure and 
        construction of public facilities, and
            ``(3) expenditures for job training and educational 
        programs.

``SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.

    ``(a) In General.--For purposes of part IV of subchapter B 
(relating to tax exemption requirements for State and local 
bonds), the term `exempt facility bond' includes any recovery 
zone facility bond.
    ``(b) Recovery Zone Facility Bond.--
            ``(1) In general.--For purposes of this section, 
        the term `recovery zone facility bond' means any bond 
        issued as part of an issue if--
                    ``(A) 95 percent or more of the net 
                proceeds (as defined in section 150(a)(3)) of 
                such issue are to be used for recovery zone 
                property,
                    ``(B) such bond is issued before January 1, 
                2011, and
                    ``(C) the issuer designates such bond for 
                purposes of this section.
            ``(2) Limitation on amount of bonds designated.--
        The maximum aggregate face amount of bonds which may be 
        designated by any issuer under paragraph (1) shall not 
        exceed the amount of recovery zone facility bond 
        limitation allocated to such issuer under section 
        1400U-1.
    ``(c) Recovery Zone Property.--For purposes of this 
section--
            ``(1) In general.--The term `recovery zone 
        property' means any property to which section 168 
        applies (or would apply but for section 179) if--
                    ``(A) such property was constructed, 
                reconstructed, renovated, or acquired by 
                purchase (as defined in section 179(d)(2)) by 
                the taxpayer after the date on which the 
                designation of the recovery zone took effect,
                    ``(B) the original use of which in the 
                recovery zone commences with the taxpayer, and
                    ``(C) substantially all of the use of which 
                is in the recovery zone and is in the active 
                conduct of a qualified business by the taxpayer 
                in such zone.
            ``(2) Qualified business.--The term `qualified 
        business' means any trade or business except that--
                    ``(A) the rental to others of real property 
                located in a recovery zone shall be treated as 
                a qualified business only if the property is 
                not residential rental property (as defined in 
                section 168(e)(2)), and
                    ``(B) such term shall not include any trade 
                or business consisting of the operation of any 
                facility described in section 144(c)(6)(B).
            ``(3) Special rules for substantial renovations and 
        sale-leaseback.--Rules similar to the rules of 
        subsections (a)(2) and (b) of section 1397D shall apply 
        for purposes of this subsection.
    ``(d) Nonapplication of Certain Rules.--Sections 146 
(relating to volume cap) and 147(d) (relating to acquisition of 
existing property not permitted) shall not apply to any 
recovery zone facility bond.''.
    (b) Clerical Amendment.--The table of parts for subchapter 
Y of chapter 1 of such Code is amended by adding at the end the 
following new item:

                   ``Part III. Recovery Zone Bonds.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

    (a) In General.--Section 7871 is amended by adding at the 
end the following new subsection:
    ``(f) Tribal Economic Development Bonds.--
            ``(1) Allocation of limitation.--
                    ``(A) In general.--The Secretary shall 
                allocate the national tribal economic 
                development bond limitation among the Indian 
                tribal governments in such manner as the 
                Secretary, in consultation with the Secretary 
                of the Interior, determines appropriate.
                    ``(B) National limitation.--There is a 
                national tribal economic development bond 
                limitation of $2,000,000,000.
            ``(2) Bonds treated as exempt from tax.--In the 
        case of a tribal economic development bond--
                    ``(A) notwithstanding subsection (c), such 
                bond shall be treated for purposes of this 
                title in the same manner as if such bond were 
                issued by a State,
                    ``(B) the Indian tribal government issuing 
                such bond and any instrumentality of such 
                Indian tribal government shall be treated as a 
                State for purposes of section 141, and
                    ``(C) section 146 shall not apply.
            ``(3) Tribal economic development bond.--
                    ``(A) In general.--For purposes of this 
                section, the term `tribal economic development 
                bond' means any bond issued by an Indian tribal 
                government--
                            ``(i) the interest on which would 
                        be exempt from tax under section 103 if 
                        issued by a State or local government, 
                        and
                            ``(ii) which is designated by the 
                        Indian tribal government as a tribal 
                        economic development bond for purposes 
                        of this subsection.
                    ``(B) Exceptions.--Such term shall not 
                include any bond issued as part of an issue if 
                any portion of the proceeds of such issue are 
                used to finance--
                            ``(i) any portion of a building in 
                        which class II or class III gaming (as 
                        defined in section 4 of the Indian 
                        Gaming Regulatory Act) is conducted or 
                        housed or any other property actually 
                        used in the conduct of such gaming, or
                            ``(ii) any facility located outside 
                        the Indian reservation (as defined in 
                        section 168(j)(6)).
                    ``(C) Limitation on amount of bonds 
                designated.--The maximum aggregate face amount 
                of bonds which may be designated by any Indian 
                tribal government under subparagraph (A) shall 
                not exceed the amount of national tribal 
                economic development bond limitation allocated 
                to such government under paragraph (1).''.
    (b) Study.--The Secretary of the Treasury, or the 
Secretary's delegate, shall conduct a study of the effects of 
the amendment made by subsection (a). Not later than 1 year 
after the date of the enactment of this Act, the Secretary of 
the Treasury, or the Secretary's delegate, shall report to 
Congress on the results of the study conducted under this 
paragraph, including the Secretary's recommendations regarding 
such amendment.
    (c) Effective Date.--The amendment made by subsection (a) 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT.

    (a) In General.--Section 45D(f)(1) is amended--
            (1) by striking ``and'' at the end of subparagraph 
        (C),
            (2) by striking ``, 2007, 2008, and 2009.'' in 
        subparagraph (D), and inserting ``and 2007,'', and
            (3) by adding at the end the following new 
        subparagraphs:
                    ``(E) $5,000,000,000 for 2008, and
                    ``(F) $5,000,000,000 for 2009.''.
    (b) Special Rule for Allocation of Increased 2008 
Limitation.--The amount of the increase in the new markets tax 
credit limitation for calendar year 2008 by reason of the 
amendments made by subsection (a) shall be allocated in 
accordance with section 45D(f)(2) of the Internal Revenue Code 
of 1986 to qualified community development entities (as defined 
in section 45D(c) of such Code) which--
            (1) submitted an allocation application with 
        respect to calendar year 2008, and
            (2)(A) did not receive an allocation for such 
        calendar year, or
            (B) received an allocation for such calendar year 
        in an amount less than the amount requested in the 
        allocation application.

SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME 
                    HOUSING GRANTS.

    Subsection (i) of section 42 is amended by adding at the 
end the following new paragraph:
            ``(9) Coordination with low-income housing 
        grants.--
                    ``(A) Reduction in state housing credit 
                ceiling for low-income housing grants received 
                in 2009.--For purposes of this section, the 
                amounts described in clauses (i) through (iv) 
                of subsection (h)(3)(C) with respect to any 
                State for 2009 shall each be reduced by so much 
                of such amount as is taken into account in 
                determining the amount of any grant to such 
                State under section 1602 of the American 
                Recovery and Reinvestment Tax Act of 2009.
                    ``(B) Special rule for basis.--Basis of a 
                qualified low-income building shall not be 
                reduced by the amount of any grant described in 
                subparagraph (A).''.

               Subtitle F--Infrastructure Financing Tools

          PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST 
                    EXPENSE OF FINANCIAL INSTITUTIONS.

    (a) In General.--Subsection (b) of section 265 is amended 
by adding at the end the following new paragraph:
            ``(7) De minimis exception for bonds issued during 
        2009 or 2010.--
                    ``(A) In general.--In applying paragraph 
                (2)(A), there shall not be taken into account 
                tax-exempt obligations issued during 2009 or 
                2010.
                    ``(B) Limitation.--The amount of tax-exempt 
                obligations not taken into account by reason of 
                subparagraph (A) shall not exceed 2 percent of 
                the amount determined under paragraph (2)(B).
                    ``(C) Refundings.--For purposes of this 
                paragraph, a refunding bond (whether a current 
                or advance refunding) shall be treated as 
                issued on the date of the issuance of the 
                refunded bond (or in the case of a series of 
                refundings, the original bond).''.
    (b) Treatment as Financial Institution Preference Item.--
Clause (iv) of section 291(e)(1)(B) is amended by adding at the 
end the following: ``That portion of any obligation not taken 
into account under paragraph (2)(A) of section 265(b) by reason 
of paragraph (7) of such section shall be treated for purposes 
of this section as having been acquired on August 7, 1986.''.
    (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after December 31, 2008.

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT 
                    INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL 
                    INSTITUTIONS.

    (a) In General.--Paragraph (3) of section 265(b) (relating 
to exception for certain tax-exempt obligations) is amended by 
adding at the end the following new subparagraph:
                    ``(G) Special rules for obligations issued 
                during 2009 and 2010.--
                            ``(i) Increase in limitation.--In 
                        the case of obligations issued during 
                        2009 or 2010, subparagraphs (C)(i), 
                        (D)(i), and (D)(iii)(II) shall each be 
                        applied by substituting `$30,000,000' 
                        for `$10,000,000'.
                            ``(ii) Qualified 501(c)(3) bonds 
                        treated as issued by exempt 
                        organization.--In the case of a 
                        qualified 501(c)(3) bond (as defined in 
                        section 145) issued during 2009 or 
                        2010, this paragraph shall be applied 
                        by treating the 501(c)(3) organization 
                        for whose benefit such bond was issued 
                        as the issuer.
                            ``(iii) Special rule for qualified 
                        financings.--In the case of a qualified 
                        financing issue issued during 2009 or 
                        2010--
                                    ``(I) subparagraph (F) 
                                shall not apply, and
                                    ``(II) any obligation 
                                issued as a part of such issue 
                                shall be treated as a qualified 
                                tax-exempt obligation if the 
                                requirements of this paragraph 
                                are met with respect to each 
                                qualified portion of the issue 
                                (determined by treating each 
                                qualified portion as a separate 
                                issue which is issued by the 
                                qualified borrower with respect 
                                to which such portion relates).
                            ``(iv) Qualified financing issue.--
                        For purposes of this subparagraph, the 
                        term `qualified financing issue' means 
                        any composite, pooled, or other conduit 
                        financing issue the proceeds of which 
                        are used directly or indirectly to make 
                        or finance loans to 1 or more ultimate 
                        borrowers each of whom is a qualified 
                        borrower.
                            ``(v) Qualified portion.--For 
                        purposes of this subparagraph, the term 
                        `qualified portion' means that portion 
                        of the proceeds which are used with 
                        respect to each qualified borrower 
                        under the issue.
                            ``(vi) Qualified borrower.--For 
                        purposes of this subparagraph, the term 
                        `qualified borrower' means a borrower 
                        which is a State or political 
                        subdivision thereof or an organization 
                        described in section 501(c)(3) and 
                        exempt from taxation under section 
                        501(a).''.
    (b) Effective Date.--The amendment made by this section 
shall apply to obligations issued after December 31, 2008.

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX 
                    LIMITATIONS ON TAX-EXEMPT BONDS.

    (a) Interest on Private Activity Bonds Issued During 2009 
and 2010 Not Treated as Tax Preference Item.--Subparagraph (C) 
of section 57(a)(5) is amended by adding at the end a new 
clause:
                            ``(vi) Exception for bonds issued 
                        in 2009 and 2010.--
                                    ``(I) In general.--For 
                                purposes of clause (i), the 
                                term `private activity bond' 
                                shall not include any bond 
                                issued after December 31, 2008, 
                                and before January 1, 2011.
                                    ``(II) Treatment of 
                                refunding bonds.--For purposes 
                                of subclause (I), a refunding 
                                bond (whether a current or 
                                advance refunding) shall be 
                                treated as issued on the date 
                                of the issuance of the refunded 
                                bond (or in the case of a 
                                series of refundings, the 
                                original bond).
                                    ``(III) Exception for 
                                certain refunding bonds.--
                                Subclause (II) shall not apply 
                                to any refunding bond which is 
                                issued to refund any bond which 
                                was issued after December 31, 
                                2003, and before January 1, 
                                2009.''.
    (b) No Adjustment to Adjusted Current Earnings for Interest 
on Tax-Exempt Bonds Issued During 2009 and 2010.--Subparagraph 
(B) of section 56(g)(4) is amended by adding at the end the 
following new clause:
                            ``(iv) Tax exempt interest on bonds 
                        issued in 2009 and 2010.--
                                    ``(I) In general.--Clause 
                                (i) shall not apply in the case 
                                of any interest on a bond 
                                issued after December 31, 2008, 
                                and before January 1, 2011.
                                    ``(II) Treatment of 
                                refunding bonds.--For purposes 
                                of subclause (I), a refunding 
                                bond (whether a current or 
                                advance refunding) shall be 
                                treated as issued on the date 
                                of the issuance of the refunded 
                                bond (or in the case of a 
                                series of refundings, the 
                                original bond).
                                    ``(III) Exception for 
                                certain refunding bonds.--
                                Subclause (II) shall not apply 
                                to any refunding bond which is 
                                issued to refund any bond which 
                                was issued after December 31, 
                                2003, and before January 1, 
                                2009.''.
    (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after December 31, 2008.

SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS.

    (a) In General.--Paragraph (1) of section 142(i) is amended 
by striking ``operate at speeds in excess of'' and inserting 
``be capable of attaining a maximum speed in excess of''.
    (b) Effective Date.--The amendment made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

    PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
                              CONTRACTORS

SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
                    CONTRACTORS.

    Subsection (b) of section 511 of the Tax Increase 
Prevention and Reconciliation Act of 2005 is amended by 
striking ``December 31, 2010'' and inserting ``December 31, 
2011''.

                 PART III--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of 
chapter 1 is amended by adding at the end the following new 
section:

``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

    ``(a) Qualified School Construction Bond.--For purposes of 
this subchapter, the term `qualified school construction bond' 
means any bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds 
        of such issue are to be used for the construction, 
        rehabilitation, or repair of a public school facility 
        or for the acquisition of land on which such a facility 
        is to be constructed with part of the proceeds of such 
        issue,
            ``(2) the bond is issued by a State or local 
        government within the jurisdiction of which such school 
        is located, and
            ``(3) the issuer designates such bond for purposes 
        of this section.
    ``(b) Limitation on Amount of Bonds Designated.--The 
maximum aggregate face amount of bonds issued during any 
calendar year which may be designated under subsection (a) by 
any issuer shall not exceed the limitation amount allocated 
under subsection (d) for such calendar year to such issuer.
    ``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified school construction bond 
limitation for each calendar year. Such limitation is--
            ``(1) $11,000,000,000 for 2009,
            ``(2) $11,000,000,000 for 2010, and
            ``(3) except as provided in subsection (e), zero 
        after 2010.
    ``(d) Allocation of Limitation.--
            ``(1) Allocation among states.--Except as provided 
        in paragraph (2)(C), the limitation applicable under 
        subsection (c) for any calendar year shall be allocated 
        by the Secretary among the States in proportion to the 
        respective amounts each such State is eligible to 
        receive under section 1124 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6333) for 
        the most recent fiscal year ending before such calendar 
        year. The limitation amount allocated to a State under 
        the preceding sentence shall be allocated by the State 
        to issuers within such State.
            ``(2) 40 percent of limitation allocated among 
        largest school districts.--
                    ``(A) In general.--40 percent of the 
                limitation applicable under subsection (c) for 
                any calendar year shall be allocated under 
                subparagraph (B) by the Secretary among local 
                educational agencies which are large local 
                educational agencies for such year.
                    ``(B) Allocation formula.--The amount to be 
                allocated under subparagraph (A) for any 
                calendar year shall be allocated among large 
                local educational agencies in proportion to the 
                respective amounts each such agency received 
                under section 1124 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                6333) for the most recent fiscal year ending 
                before such calendar year.
                    ``(C) Reduction in state allocation.--The 
                allocation to any State under paragraph (1) 
                shall be reduced by the aggregate amount of the 
                allocations under this paragraph to large local 
                educational agencies within such State.
                    ``(D) Allocation of unused limitation to 
                state.--The amount allocated under this 
                paragraph to a large local educational agency 
                for any calendar year may be reallocated by 
                such agency to the State in which such agency 
                is located for such calendar year. Any amount 
                reallocated to a State under the preceding 
                sentence may be allocated as provided in 
                paragraph (1).
                    ``(E) Large local educational agency.--For 
                purposes of this paragraph, the term `large 
                local educational agency' means, with respect 
                to a calendar year, any local educational 
                agency if such agency is--
                            ``(i) among the 100 local 
                        educational agencies with the largest 
                        numbers of children aged 5 through 17 
                        from families living below the poverty 
                        level, as determined by the Secretary 
                        using the most recent data available 
                        from the Department of Commerce that 
                        are satisfactory to the Secretary, or
                            ``(ii) 1 of not more than 25 local 
                        educational agencies (other than those 
                        described in clause (i)) that the 
                        Secretary of Education determines 
                        (based on the most recent data 
                        available satisfactory to the 
                        Secretary) are in particular need of 
                        assistance, based on a low level of 
                        resources for school construction, a 
                        high level of enrollment growth, or 
                        such other factors as the Secretary 
                        deems appropriate.
            ``(3) Allocations to certain possessions.--The 
        amount to be allocated under paragraph (1) to any 
        possession of the United States other than Puerto Rico 
        shall be the amount which would have been allocated if 
        all allocations under paragraph (1) were made on the 
        basis of respective populations of individuals below 
        the poverty line (as defined by the Office of 
        Management and Budget). In making other allocations, 
        the amount to be allocated under paragraph (1) shall be 
        reduced by the aggregate amount allocated under this 
        paragraph to possessions of the United States.
            ``(4) Allocations for indian schools.--In addition 
        to the amounts otherwise allocated under this 
        subsection, $200,000,000 for calendar year 2009, and 
        $200,000,000 for calendar year 2010, shall be allocated 
        by the Secretary of the Interior for purposes of the 
        construction, rehabilitation, and repair of schools 
        funded by the Bureau of Indian Affairs. In the case of 
        amounts allocated under the preceding sentence, Indian 
        tribal governments (as defined in section 7701(a)(40)) 
        shall be treated as qualified issuers for purposes of 
        this subchapter.
    ``(e) Carryover of Unused Limitation.--If for any calendar 
year--
            ``(1) the amount allocated under subsection (d) to 
        any State, exceeds
            ``(2) the amount of bonds issued during such year 
        which are designated under subsection (a) pursuant to 
        such allocation,
the limitation amount under such subsection for such State for 
the following calendar year shall be increased by the amount of 
such excess. A similar rule shall apply to the amounts 
allocated under subsection (d)(4).''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended by 
        striking ``or'' at the end of subparagraph (C), by 
        inserting ``or'' at the end of subparagraph (D), and by 
        inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) a qualified school construction 
                bond,''.
            (2) Subparagraph (C) of section 54A(d)(2) is 
        amended by striking ``and'' at the end of clause (iii), 
        by striking the period at the end of clause (iv) and 
        inserting ``, and'', and by adding at the end the 
        following new clause:
                            ``(v) in the case of a qualified 
                        school construction bond, a purpose 
                        specified in section 54F(a)(1).''.
            (3) The table of sections for subpart I of part IV 
        of subchapter A of chapter 1 is amended by adding at 
        the end the following new item:

``Sec. 54F. Qualified school construction bonds.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Section 54E(c)(1) is amended by striking 
``and 2009'' and inserting ``and $1,400,000,000 for 2009 and 
2010''.
    (b) Effective Date.--The amendment made by this section 
shall apply to obligations issued after December 31, 2008.

                      PART IV--BUILD AMERICA BONDS

SEC. 1531. BUILD AMERICA BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 is 
amended by adding at the end the following new subpart:

                    ``Subpart J--Build America Bonds

``Sec. 54AA. Build America bonds.

``SEC. 54AA. BUILD AMERICA BONDS.

    ``(a) In General.--If a taxpayer holds a build America bond 
on one or more interest payment dates of the bond during any 
taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credits determined under subsection (b) 
with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit 
determined under this subsection with respect to any interest 
payment date for a build America bond is 35 percent of the 
amount of interest payable by the issuer with respect to such 
date .
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under 
        subsection (a) for any taxable year shall not exceed 
        the excess of--
                    ``(A) the sum of the regular tax liability 
                (as defined in section 26(b)) plus the tax 
                imposed by section 55, over
                    ``(B) the sum of the credits allowable 
                under this part (other than subpart C and this 
                subpart).
            ``(2) Carryover of unused credit.--If the credit 
        allowable under subsection (a) exceeds the limitation 
        imposed by paragraph (1) for such taxable year, such 
        excess shall be carried to the succeeding taxable year 
        and added to the credit allowable under subsection (a) 
        for such taxable year (determined before the 
        application of paragraph (1) for such succeeding 
        taxable year).
    ``(d) Build America Bond.--
            ``(1) In general.--For purposes of this section, 
        the term `build America bond' means any obligation 
        (other than a private activity bond) if--
                    ``(A) the interest on such obligation would 
                (but for this section) be excludable from gross 
                income under section 103,
                    ``(B) such obligation is issued before 
                January 1, 2011, and
                    ``(C) the issuer makes an irrevocable 
                election to have this section apply.
            ``(2) Applicable rules.--For purposes of applying 
        paragraph (1)--
                    ``(A) for purposes of section 149(b), a 
                build America bond shall not be treated as 
                federally guaranteed by reason of the credit 
                allowed under subsection (a) or section 6431,
                    ``(B) for purposes of section 148, the 
                yield on a build America bond shall be 
                determined without regard to the credit allowed 
                under subsection (a), and
                    ``(C) a bond shall not be treated as a 
                build America bond if the issue price has more 
                than a de minimis amount (determined under 
                rules similar to the rules of section 
                1273(a)(3)) of premium over the stated 
                principal amount of the bond.
    ``(e) Interest Payment Date.--For purposes of this section, 
the term `interest payment date' means any date on which the 
holder of record of the build America bond is entitled to a 
payment of interest under such bond.
    ``(f) Special Rules.--
            ``(1) Interest on build america bonds includible in 
        gross income for federal income tax purposes.--For 
        purposes of this title, interest on any build America 
        bond shall be includible in gross income.
            ``(2) Application of certain rules.--Rules similar 
        to the rules of subsections (f), (g), (h), and (i) of 
        section 54A shall apply for purposes of the credit 
        allowed under subsection (a).
    ``(g) Special Rule for Qualified Bonds Issued Before 
2011.--In the case of a qualified bond issued before January 1, 
2011--
            ``(1) Issuer allowed refundable credit.--In lieu of 
        any credit allowed under this section with respect to 
        such bond, the issuer of such bond shall be allowed a 
        credit as provided in section 6431.
            ``(2) Qualified bond.--For purposes of this 
        subsection, the term `qualified bond' means any build 
        America bond issued as part of an issue if--
                    ``(A) 100 percent of the excess of--
                            ``(i) the available project 
                        proceeds (as defined in section 54A) of 
                        such issue, over
                            ``(ii) the amounts in a reasonably 
                        required reserve (within the meaning of 
                        section 150(a)(3)) with respect to such 
                        issue,
                are to be used for capital expenditures, and
                    ``(B) the issuer makes an irrevocable 
                election to have this subsection apply.
    ``(h) Regulations.--The Secretary may prescribe such 
regulations and other guidance as may be necessary or 
appropriate to carry out this section and section 6431.''.
    (b) Credit for Qualified Bonds Issued Before 2011.--
Subchapter B of chapter 65 is amended by adding at the end the 
following new section:

``SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.

    ``(a) In General.--In the case of a qualified bond issued 
before January 1, 2011, the issuer of such bond shall be 
allowed a credit with respect to each interest payment under 
such bond which shall be payable by the Secretary as provided 
in subsection (b).
    ``(b) Payment of Credit.--The Secretary shall pay 
(contemporaneously with each interest payment date under such 
bond) to the issuer of such bond (or to any person who makes 
such interest payments on behalf of the issuer) 35 percent of 
the interest payable under such bond on such date.
    ``(c) Application of Arbitrage Rules.--For purposes of 
section 148, the yield on a qualified bond shall be reduced by 
the credit allowed under this section.
    ``(d) Interest Payment Date.--For purposes of this 
subsection, the term `interest payment date' means each date on 
which interest is payable by the issuer under the terms of the 
bond.
    ``(e) Qualified Bond.--For purposes of this subsection, the 
term `qualified bond' has the meaning given such term in 
section 54AA(g).''.
    (c) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States 
        Code, is amended by striking ``or 6428'' and inserting 
        ``6428, or 6431,''.
            (2) Section 54A(c)(1)(B) is amended by striking 
        ``subpart C'' and inserting ``subparts C and J''.
            (3) Sections 54(c)(2), 1397E(c)(2), and 
        1400N(l)(3)(B) are each amended by striking ``and I'' 
        and inserting ``, I, and J''.
            (4) Section 6211(b)(4)(A) is amended by striking 
        ``and 6428'' and inserting ``6428, and 6431''.
            (5) Section 6401(b)(1) is amended by striking ``and 
        I'' and inserting ``I, and J''.
            (6) The table of subparts for part IV of subchapter 
        A of chapter 1 is amended by adding at the end the 
        following new item:

                  ``subpart j. build america bonds.''.

            (7) The table of section for subchapter B of 
        chapter 65 is amended by adding at the end the 
        following new item:

``Sec. 6431. Credit for qualified bonds allowed to issuer.''.

    (d) Transitional Coordination With State Law.--Except as 
otherwise provided by a State after the date of the enactment 
of this Act, the interest on any build America bond (as defined 
in section 54AA of the Internal Revenue Code of 1986, as added 
by this section) and the amount of any credit determined under 
such section with respect to such bond shall be treated for 
purposes of the income tax laws of such State as being exempt 
from Federal income tax.
    (e) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

PART V--REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT 
                              BOND CREDITS

SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX 
                    CREDIT BOND CREDITS.

    (a) In General.--Part I of subchapter M of chapter 1 is 
amended by inserting after section 853 the following new 
section:

``SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.

    ``(a) General Rule.--A regulated investment company--
            ``(1) which holds (directly or indirectly) one or 
        more tax credit bonds on one or more applicable dates 
        during the taxable year, and
            ``(2) which meets the requirements of section 
        852(a) for the taxable year,
may elect the application of this section with respect to 
credits allowable to the investment company during such taxable 
year with respect to such bonds.
    ``(b) Effect of Election.--If the election provided in 
subsection (a) is in effect for any taxable year--
            ``(1) the regulated investment company shall not be 
        allowed any credits to which subsection (a) applies for 
        such taxable year,
            ``(2) the regulated investment company shall--
                    ``(A) include in gross income (as interest) 
                for such taxable year an amount equal to the 
                amount that such investment company would have 
                included in gross income with respect to such 
                credits if this section did not apply, and
                    ``(B) increase the amount of the dividends 
                paid deduction for such taxable year by the 
                amount of such income, and
            ``(3) each shareholder of such investment company 
        shall--
                    ``(A) include in gross income an amount 
                equal to such shareholder's proportionate share 
                of the interest income attributable to such 
                credits, and
                    ``(B) be allowed the shareholder's 
                proportionate share of such credits against the 
                tax imposed by this chapter.
    ``(c) Notice to Shareholders.--For purposes of subsection 
(b)(3), the shareholder's proportionate share of--
            ``(1) credits described in subsection (a), and
            ``(2) gross income in respect of such credits,
shall not exceed the amounts so designated by the regulated 
investment company in a written notice mailed to its 
shareholders not later than 60 days after the close of its 
taxable year.
    ``(d) Manner of Making Election and Notifying 
Shareholders.--The election provided in subsection (a) and the 
notice to shareholders required by subsection (c) shall be made 
in such manner as the Secretary may prescribe.
    ``(e) Definitions and Special Rules.--
            ``(1) Definitions.--For purposes of this 
        subsection--
                    ``(A) Tax credit bond.--The term `tax 
                credit bond' means--
                            ``(i) a qualified tax credit bond 
                        (as defined in section 54A(d)),
                            ``(ii) a build America bond (as 
                        defined in section 54AA(d)), and
                            ``(iii) any bond for which a credit 
                        is allowable under subpart H of part IV 
                        of subchapter A of this chapter.
                    ``(B) Applicable date.--The term 
                `applicable date' means--
                            ``(i) in the case of a qualified 
                        tax credit bond or a bond described in 
                        subparagraph (A)(iii), any credit 
                        allowance date (as defined in section 
                        54A(e)(1)), and
                            ``(ii) in the case of a build 
                        America bond (as defined in section 
                        54AA(d)), any interest payment date (as 
                        defined in section 54AA(e)).
            ``(2) Stripped tax credit bonds.--If the ownership 
        of a tax credit bond is separated from the credit with 
        respect to such bond, subsection (a) shall be applied 
        by reference to the instruments evidencing the 
        entitlement to the credit rather than the tax credit 
        bond.
    ``(f) Regulations, etc.--The Secretary shall prescribe such 
regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, 
including methods for determining a shareholder's proportionate 
share of credits.''.
    (b) Conforming Amendments.--
            (1) Section 54(l) is amended by striking paragraph 
        (4) and by redesignating paragraphs (5) and (6) as 
        paragraphs (4) and (5), respectively.
            (2) Section 54A(h) is amended to read as follows:
    ``(h) Bonds Held by Real Estate Investment Trusts.--If any 
qualified tax credit bond is held by a real estate investment 
trust, the credit determined under subsection (a) shall be 
allowed to beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall 
be distributed to such beneficiaries) under procedures 
prescribed by the Secretary.''.
            (3) The table of sections for part I of subchapter 
        M of chapter 1 is amended by inserting after the item 
        relating to section 853 the following new item:

``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after the date of the 
enactment of this Act.

                      Subtitle G--Other Provisions

SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED 
                    WITH CERTAIN TAX-FAVORED BONDS.

    Subchapter IV of chapter 31 of the title 40, United States 
Code, shall apply to projects financed with the proceeds of--
            (1) any new clean renewable energy bond (as defined 
        in section 54C of the Internal Revenue Code of 1986) 
        issued after the date of the enactment of this Act,
            (2) any qualified energy conservation bond (as 
        defined in section 54D of the Internal Revenue Code of 
        1986) issued after the date of the enactment of this 
        Act,
            (3) any qualified zone academy bond (as defined in 
        section 54E of the Internal Revenue Code of 1986) 
        issued after the date of the enactment of this Act,
            (4) any qualified school construction bond (as 
        defined in section 54F of the Internal Revenue Code of 
        1986), and
            (5) any recovery zone economic development bond (as 
        defined in section 1400U-2 of the Internal Revenue Code 
        of 1986).

SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF 
                    LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.

    (a) In General.--The Secretary of the Treasury shall make a 
grant to the housing credit agency of each State in an amount 
equal to such State's low-income housing grant election amount.
    (b) Low-Income Housing Grant Election Amount.--For purposes 
of this section, the term ``low-income housing grant election 
amount'' means, with respect to any State, such amount as the 
State may elect which does not exceed 85 percent of the product 
of--
            (1) the sum of--
                    (A) 100 percent of the State housing credit 
                ceiling for 2009 which is attributable to 
                amounts described in clauses (i) and (iii) of 
                section 42(h)(3)(C) of the Internal Revenue 
                Code of 1986, and
                    (B) 40 percent of the State housing credit 
                ceiling for 2009 which is attributable to 
                amounts described in clauses (ii) and (iv) of 
                such section, multiplied by
            (2) 10.
    (c) Subawards for Low-Income Buildings.--
            (1) In general.--A State housing credit agency 
        receiving a grant under this section shall use such 
        grant to make subawards to finance the construction or 
        acquisition and rehabilitation of qualified low-income 
        buildings. A subaward under this section may be made to 
        finance a qualified low-income building with or without 
        an allocation under section 42 of the Internal Revenue 
        Code of 1986, except that a State housing credit agency 
        may make subawards to finance qualified low-income 
        buildings without an allocation only if it makes a 
        determination that such use will increase the total 
        funds available to the State to build and rehabilitate 
        affordable housing. In complying with such 
        determination requirement, a State housing credit 
        agency shall establish a process in which applicants 
        that are allocated credits are required to demonstrate 
        good faith efforts to obtain investment commitments for 
        such credits before the agency makes such subawards.
            (2) Subawards subject to same requirements as low-
        income housing credit allocations.--Any such subaward 
        with respect to any qualified low-income building shall 
        be made in the same manner and shall be subject to the 
        same limitations (including rent, income, and use 
        restrictions on such building) as an allocation of 
        housing credit dollar amount allocated by such State 
        housing credit agency under section 42 of the Internal 
        Revenue Code of 1986, except that such subawards shall 
        not be limited by, or otherwise affect (except as 
        provided in subsection (h)(3)(J) of such section), the 
        State housing credit ceiling applicable to such agency.
            (3) Compliance and asset management.--The State 
        housing credit agency shall perform asset management 
        functions to ensure compliance with section 42 of the 
        Internal Revenue Code of 1986 and the long-term 
        viability of buildings funded by any subaward under 
        this section. The State housing credit agency may 
        collect reasonable fees from a subaward recipient to 
        cover expenses associated with the performance of its 
        duties under this paragraph. The State housing credit 
        agency may retain an agent or other private contractor 
        to satisfy the requirements of this paragraph.
            (4) Recapture.--The State housing credit agency 
        shall impose conditions or restrictions, including a 
        requirement providing for recapture, on any subaward 
        under this section so as to assure that the building 
        with respect to which such subaward is made remains a 
        qualified low-income building during the compliance 
        period. Any such recapture shall be payable to the 
        Secretary of the Treasury for deposit in the general 
        fund of the Treasury and may be enforced by means of 
        liens or such other methods as the Secretary of the 
        Treasury determines appropriate.
    (d) Return of Unused Grant Funds.--Any grant funds not used 
to make subawards under this section before January 1, 2011, 
shall be returned to the Secretary of the Treasury on such 
date. Any subawards returned to the State housing credit agency 
on or after such date shall be promptly returned to the 
Secretary of the Treasury. Any amounts returned to the 
Secretary of the Treasury under this subsection shall be 
deposited in the general fund of the Treasury.
    (e) Definitions.--Any term used in this section which is 
also used in section 42 of the Internal Revenue Code of 1986 
shall have the same meaning for purposes of this section as 
when used in such section 42. Any reference in this section to 
the Secretary of the Treasury shall be treated as including the 
Secretary's delegate.
    (f) Appropriations.--There is hereby appropriated to the 
Secretary of the Treasury such sums as may be necessary to 
carry out this section.

SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

    (a) In General.--Upon application, the Secretary of the 
Treasury shall, subject to the requirements of this section, 
provide a grant to each person who places in service specified 
energy property to reimburse such person for a portion of the 
expense of such property as provided in subsection (b). No 
grant shall be made under this section with respect to any 
property unless such property--
            (1) is placed in service during 2009 or 2010, or
            (2) is placed in service after 2010 and before the 
        credit termination date with respect to such property, 
        but only if the construction of such property began 
        during 2009 or 2010.
    (b) Grant Amount.--
            (1) In general.--The amount of the grant under 
        subsection (a) with respect to any specified energy 
        property shall be the applicable percentage of the 
        basis of such property.
            (2) Applicable percentage.--For purposes of 
        paragraph (1), the term ``applicable percentage'' 
        means--
                    (A) 30 percent in the case of any property 
                described in paragraphs (1) through (4) of 
                subsection (d), and
                    (B) 10 percent in the case of any other 
                property.
            (3) Dollar limitations.--In the case of property 
        described in paragraph (2), (6), or (7) of subsection 
        (d), the amount of any grant under this section with 
        respect to such property shall not exceed the 
        limitation described in section 48(c)(1)(B), 
        48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue 
        Code of 1986, respectively, with respect to such 
        property.
    (c) Time for Payment of Grant.--The Secretary of the 
Treasury shall make payment of any grant under subsection (a) 
during the 60-day period beginning on the later of--
            (1) the date of the application for such grant, or
            (2) the date the specified energy property for 
        which the grant is being made is placed in service.
    (d) Specified Energy Property.--For purposes of this 
section, the term ``specified energy property'' means any of 
the following:
            (1) Qualified facilities.--Any qualified property 
        (as defined in section 48(a)(5)(D) of the Internal 
        Revenue Code of 1986) which is part of a qualified 
        facility (within the meaning of section 45 of such 
        Code) described in paragraph (1), (2), (3), (4), (6), 
        (7), (9), or (11) of section 45(d) of such Code.
            (2) Qualified fuel cell property.--Any qualified 
        fuel cell property (as defined in section 48(c)(1) of 
        such Code).
            (3) Solar property.--Any property described in 
        clause (i) or (ii) of section 48(a)(3)(A) of such Code.
            (4) Qualified small wind energy property.--Any 
        qualified small wind energy property (as defined in 
        section 48(c)(4) of such Code).
            (5) Geothermal property.--Any property described in 
        clause (iii) of section 48(a)(3)(A) of such Code.
            (6) Qualified microturbine property.--Any qualified 
        microturbine property (as defined in section 48(c)(2) 
        of such Code).
            (7) Combined heat and power system property.--Any 
        combined heat and power system property (as defined in 
        section 48(c)(3) of such Code).
            (8) Geothermal heat pump property.--Any property 
        described in clause (vii) of section 48(a)(3)(A) of 
        such Code.
Such term shall not include any property unless depreciation 
(or amortization in lieu of depreciation) is allowable with 
respect to such property.
    (e) Credit Termination Date.--For purposes of this section, 
the term ``credit termination date'' means--
            (1) in the case of any specified energy property 
        which is part of a facility described in paragraph (1) 
        of section 45(d) of the Internal Revenue Code of 1986, 
        January 1, 2013,
            (2) in the case of any specified energy property 
        which is part of a facility described in paragraph (2), 
        (3), (4), (6), (7), (9), or (11) of section 45(d) of 
        such Code, January 1, 2014, and
            (3) in the case of any specified energy property 
        described in section 48 of such Code, January 1, 2017.
In the case of any property which is described in paragraph (3) 
and also in another paragraph of this subsection, paragraph (3) 
shall apply with respect to such property.
    (f) Application of Certain Rules.--In making grants under 
this section, the Secretary of the Treasury shall apply rules 
similar to the rules of section 50 of the Internal Revenue Code 
of 1986. In applying such rules, if the property is disposed 
of, or otherwise ceases to be specified energy property, the 
Secretary of the Treasury shall provide for the recapture of 
the appropriate percentage of the grant amount in such manner 
as the Secretary of the Treasury determines appropriate.
    (g) Exception for Certain Non-Taxpayers.--The Secretary of 
the Treasury shall not make any grant under this section to--
            (1) any Federal, State, or local government (or any 
        political subdivision, agency, or instrumentality 
        thereof),
            (2) any organization described in section 501(c) of 
        the Internal Revenue Code of 1986 and exempt from tax 
        under section 501(a) of such Code,
            (3) any entity referred to in paragraph (4) of 
        section 54(j) of such Code, or
            (4) any partnership or other pass-thru entity any 
        partner (or other holder of an equity or profits 
        interest) of which is described in paragraph (1), (2) 
        or (3).
    (h) Definitions.--Terms used in this section which are also 
used in section 45 or 48 of the Internal Revenue Code of 1986 
shall have the same meaning for purposes of this section as 
when used in such section 45 or 48. Any reference in this 
section to the Secretary of the Treasury shall be treated as 
including the Secretary's delegate.
    (i) Appropriations.--There is hereby appropriated to the 
Secretary of the Treasury such sums as may be necessary to 
carry out this section.
    (j) Termination.--The Secretary of the Treasury shall not 
make any grant to any person under this section unless the 
application of such person for such grant is received before 
October 1, 2011.

SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.

    Subsection (b) of section 3101 of title 31, United States 
Code, is amended by striking out the dollar limitation 
contained in such subsection and inserting 
``$12,104,000,000,000''.

 Subtitle H--Prohibition on Collection of Certain Payments Made Under 
          the Continued Dumping and Subsidy Offset Act of 2000

SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE 
                    CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.

    (a) In General.--Notwithstanding any other provision of 
law, neither the Secretary of Homeland Security nor any other 
person may--
            (1) require repayment of, or attempt in any other 
        way to recoup, any payments described in subsection 
        (b); or
            (2) offset any past, current, or future 
        distributions of antidumping or countervailing duties 
        assessed with respect to imports from countries that 
        are not parties to the North American Free Trade 
        Agreement in an attempt to recoup any payments 
        described in subsection (b).
    (b) Payments Described.--Payments described in this 
subsection are payments of antidumping or countervailing duties 
made pursuant to the Continued Dumping and Subsidy Offset Act 
of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 
1675c; repealed by subtitle F of title VII of the Deficit 
Reduction Act of 2005 (Public Law 109-171; 120 Stat. 154))) 
that were--
            (1) assessed and paid on imports of goods from 
        countries that are parties to the North American Free 
        Trade Agreement; and
            (2) distributed on or after January 1, 2001, and 
        before January 1, 2006.
    (c) Payment of Funds Collected or Withheld.--Not later than 
the date that is 60 days after the date of the enactment of 
this Act, the Secretary of Homeland Security shall--
            (1) refund any repayments, or any other recoupment, 
        of payments described in subsection (b); and
            (2) fully distribute any antidumping or 
        countervailing duties that the U.S. Customs and Border 
        Protection is withholding as an offset as described in 
        subsection (a)(2).
    (d) Limitation.--Nothing in this section shall be construed 
to prevent the Secretary of Homeland Security, or any other 
person, from requiring repayment of, or attempting to otherwise 
recoup, any payments described in subsection (b) as a result 
of--
            (1) a finding of false statements or other 
        misconduct by a recipient of such a payment; or
            (2) the reliquidation of an entry with respect to 
        which such a payment was made.

                Subtitle I--Trade Adjustment Assistance

SEC. 1800. SHORT TITLE.

    This subtitle may be cited as the ``Trade and Globalization 
Adjustment Assistance Act of 2009''.

            PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

   Subpart A--Trade Adjustment Assistance for Service Sector Workers

SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR 
                    AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION.

    (a) Definitions.--Section 247 of the Trade Act of 1974 (19 
U.S.C. 2319) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or appropriate 
                subdivision of a firm''; and
                    (B) by striking ``or subdivision'';
            (2) in paragraph (2), by striking ``employment--'' 
        and all that follows and inserting ``employment, has 
        been totally or partially separated from such 
        employment.'';
            (3) by inserting after paragraph (2) the following:
            ``(3) Subject to section 222(d)(5), the term `firm' 
        means--
                    ``(A) a firm, including an agricultural 
                firm, service sector firm, or public agency; or
                    ``(B) an appropriate subdivision 
                thereof.'';
            (4) by inserting after paragraph (6) the following:
            ``(7) The term `public agency' means a department 
        or agency of a State or local government or of the 
        Federal Government, or a subdivision thereof.'';
            (5) in paragraph (11), by striking ``, or in a 
        subdivision of which,''; and
            (6) by adding at the end the following:
            ``(18) The term `service sector firm' means a firm 
        engaged in the business of supplying services.''.
    (b) Group Eligibility Requirements.--Section 222 of the 
Trade Act of 1974 (19 U.S.C. 2272) is amended--
            (1) in subsection (a)(2)--
                    (A) by amending subparagraph (A)(ii) to 
                read as follows:
            ``(ii)(I) imports of articles or services like or 
        directly competitive with articles produced or services 
        supplied by such firm have increased;
            ``(II) imports of articles like or directly 
        competitive with articles--
                    ``(aa) into which one or more component 
                parts produced by such firm are directly 
                incorporated, or
                    ``(bb) which are produced directly using 
                services supplied by such firm,
        have increased; or
            ``(III) imports of articles directly incorporating 
        one or more component parts produced outside the United 
        States that are like or directly competitive with 
        imports of articles incorporating one or more component 
        parts produced by such firm have increased; and''; and
                    (B) by amending subparagraph (B) to read as 
                follows:
            ``(B)(i)(I) there has been a shift by such workers' 
        firm to a foreign country in the production of articles 
        or the supply of services like or directly competitive 
        with articles which are produced or services which are 
        supplied by such firm; or
            ``(II) such workers' firm has acquired from a 
        foreign country articles or services that are like or 
        directly competitive with articles which are produced 
        or services which are supplied by such firm; and
            ``(ii) the shift described in clause (i)(I) or the 
        acquisition of articles or services described in clause 
        (i)(II) contributed importantly to such workers' 
        separation or threat of separation.'';
            (2) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            (3) by inserting after subsection (a) the 
        following:
    ``(b) Adversely Affected Workers in Public Agencies.--A 
group of workers in a public agency shall be certified by the 
Secretary as eligible to apply for adjustment assistance under 
this chapter pursuant to a petition filed under section 221 if 
the Secretary determines that--
            ``(1) a significant number or proportion of the 
        workers in the public agency have become totally or 
        partially separated, or are threatened to become 
        totally or partially separated;
            ``(2) the public agency has acquired from a foreign 
        country services like or directly competitive with 
        services which are supplied by such agency; and
            ``(3) the acquisition of services described in 
        paragraph (2) contributed importantly to such workers' 
        separation or threat of separation.''.
    (c) Basis for Secretary's Determinations.--Section 222 of 
the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further 
amended by adding at the end the following:
    ``(e) Basis for Secretary's Determinations.--
            ``(1) In general.--The Secretary shall, in 
        determining whether to certify a group of workers under 
        section 223, obtain from the workers' firm, or a 
        customer of the workers' firm, information the 
        Secretary determines to be necessary to make the 
        certification, through questionnaires and in such other 
        manner as the Secretary determines appropriate.
            ``(2) Additional information.--The Secretary may 
        seek additional information to determine whether to 
        certify a group of workers under subsection (a), (b), 
        or (c)--
                    ``(A) by contacting--
                            ``(i) officials or employees of the 
                        workers' firm;
                            ``(ii) officials of customers of 
                        the workers' firm;
                            ``(iii) officials of certified or 
                        recognized unions or other duly 
                        authorized representatives of the group 
                        of workers; or
                            ``(iv) one-stop operators or one-
                        stop partners (as defined in section 
                        101 of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2801)); or
                    ``(B) by using other available sources of 
                information.
            ``(3) Verification of information.--
                    ``(A) Certification.--The Secretary shall 
                require a firm or customer to certify--
                            ``(i) all information obtained 
                        under paragraph (1) from the firm or 
                        customer (as the case may be) through 
                        questionnaires; and
                            ``(ii) all other information 
                        obtained under paragraph (1) from the 
                        firm or customer (as the case may be) 
                        on which the Secretary relies in making 
                        a determination under section 223, 
                        unless the Secretary has a reasonable 
                        basis for determining that such 
                        information is accurate and complete 
                        without being certified.
                    ``(B) Use of subpoenas.--The Secretary 
                shall require the workers' firm or a customer 
                of the workers' firm to provide information 
                requested by the Secretary under paragraph (1) 
                by subpoena pursuant to section 249 if the firm 
                or customer (as the case may be) fails to 
                provide the information within 20 days after 
                the date of the Secretary's request, unless the 
                firm or customer (as the case may be) 
                demonstrates to the satisfaction of the 
                Secretary that the firm or customer (as the 
                case may be) will provide the information 
                within a reasonable period of time.
                    ``(C) Protection of confidential 
                information.--The Secretary may not release 
                information obtained under paragraph (1) that 
                the Secretary considers to be confidential 
                business information unless the firm or 
                customer (as the case may be) submitting the 
                confidential business information had notice, 
                at the time of submission, that the information 
                would be released by the Secretary, or the firm 
                or customer (as the case may be) subsequently 
                consents to the release of the information. 
                Nothing in this subparagraph shall be construed 
                to prohibit the Secretary from providing such 
                confidential business information to a court in 
                camera or to another party under a protective 
                order issued by a court.''.
    (d) Penalties.--Section 244 of the Trade Act of 1974 (19 
U.S.C. 2316) is amended to read as follows:

``SEC. 244. PENALTIES.

    ``Any person who--
            ``(1) makes a false statement of a material fact 
        knowing it to be false, or knowingly fails to disclose 
        a material fact, for the purpose of obtaining or 
        increasing for that person or for any other person any 
        payment authorized to be furnished under this chapter 
        or pursuant to an agreement under section 239, or
            ``(2) makes a false statement of a material fact 
        knowing it to be false, or knowingly fails to disclose 
        a material fact, when providing information to the 
        Secretary during an investigation of a petition under 
        section 221,
shall be imprisoned for not more than 1 year, or fined under 
title 18, United States Code, or both.''.
    (e) Conforming Amendments.--
            (1) Section 221(a) of the Trade Act of 1974 (19 
        U.S.C. 2271(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding 
                        subparagraph (A)--
                                    (I) by striking 
                                ``Secretary'' and inserting 
                                ``Secretary of Labor''; and
                                    (II) by striking ``or 
                                subdivision'' and inserting 
                                ``(as defined in section 
                                247)''; and
                            (ii) in subparagraph (A), by 
                        striking ``(including workers in an 
                        agricultural firm or subdivision of any 
                        agricultural firm)'';
                    (B) in paragraph (2)(A), by striking 
                ``rapid response assistance'' and inserting 
                ``rapid response activities''; and
                    (C) in paragraph (3), by inserting ``and on 
                the website of the Department of Labor'' after 
                ``Federal Register''.
            (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 
        2272), as amended, is further amended--
                    (A) by striking ``(including workers in any 
                agricultural firm or subdivision of an 
                agricultural firm)'' each place it appears;
                    (B) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``, or an appropriate subdivision of 
                        the firm,''; and
                            (ii) in paragraph (2), by striking 
                        ``or subdivision'' each place it 
                        appears;
                    (C) in subsection (c) (as redesignated)--
                            (i) in paragraph (2)--
                                    (I) by striking ``(or 
                                subdivision)'' each place it 
                                appears;
                                    (II) by inserting ``or 
                                service'' after ``the 
                                article''; and
                                    (III) by striking 
                                ``(c)(3)'' and inserting 
                                ``(d)(3)''; and
                            (ii) in paragraph (3), by striking 
                        ``(or subdivision)'' each place it 
                        appears; and
                    (D) in subsection (d) (as redesignated)--
                            (i) by striking ``For purposes'' 
                        and inserting ``Definitions.--For 
                        purposes'';
                            (ii) in paragraph (2), by striking 
                        ``, or appropriate subdivision of a 
                        firm,'' each place it appears;
                            (iii) by amending paragraph (3) to 
                        read as follows:
            ``(3) Downstream producer.--
                    ``(A) In general.--The term `downstream 
                producer' means a firm that performs 
                additional, value-added production processes or 
                services directly for another firm for articles 
                or services with respect to which a group of 
                workers in such other firm has been certified 
                under subsection (a).
                    ``(B) Value-added production processes or 
                services.--For purposes of subparagraph (A), 
                value-added production processes or services 
                include final assembly, finishing, testing, 
                packaging, or maintenance or transportation 
                services.'';
                            (iv) in paragraph (4)--
                                    (I) by striking ``(or 
                                subdivision)''; and
                                    (II) by inserting ``, or 
                                services, used in the 
                                production of articles or in 
                                the supply of services, as the 
                                case may be,'' after ``for 
                                articles''; and
                            (v) by adding at the end the 
                        following:
            ``(5) Reference to firm.--For purposes of 
        subsection (a), the term `firm' does not include a 
        public agency.''.
            (3) Section 231(a)(2) of the Trade Act of 1974 (19 
        U.S.C. 2291(a)(2)) is amended--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``or subdivision of a firm''; 
                and
                    (B) in subparagraph (C), by striking ``or 
                subdivision''.

SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.

    Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as 
amended, is further amended by adding at the end the following:
    ``(f) Firms Identified by the International Trade 
Commission.--Notwithstanding any other provision of this 
chapter, a group of workers covered by a petition filed under 
section 221 shall be certified under subsection (a) as eligible 
to apply for adjustment assistance under this chapter if--
            ``(1) the workers' firm is publicly identified by 
        name by the International Trade Commission as a member 
        of a domestic industry in an investigation resulting 
        in--
                    ``(A) an affirmative determination of 
                serious injury or threat thereof under section 
                202(b)(1);
                    ``(B) an affirmative determination of 
                market disruption or threat thereof under 
                section 421(b)(1); or
                    ``(C) an affirmative final determination of 
                material injury or threat thereof under section 
                705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act 
                of 1930 (19 U.S.C. 1671d(b)(1)(A) and 
                1673d(b)(1)(A));
            ``(2) the petition is filed during the 1-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 1-year period described in 
                paragraph (2); or
                    ``(B) notwithstanding section 223(b), the 
                one-year period preceding the one-year period 
                described in paragraph (2).''.

SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.

    Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
amended--
            (1) in subsection (b), by striking ``or appropriate 
        subdivision of the firm before his application'' and 
        all that follows and inserting ``before the worker's 
        application under section 231 occurred more than one 
        year before the date of the petition on which such 
        certification was granted.'';
            (2) in subsection (c), by striking ``together with 
        his reasons'' and inserting ``and on the website of the 
        Department of Labor, together with the Secretary's 
        reasons'';
            (3) in subsection (d)--
                    (A) by striking ``or subdivision of the 
                firm'' and all that follows through ``he 
                shall'' and inserting ``, that total or partial 
                separations from such firm are no longer 
                attributable to the conditions specified in 
                section 222, the Secretary shall''; and
                    (B) by striking ``together with his 
                reasons'' and inserting ``and on the website of 
                the Department of Labor, together with the 
                Secretary's reasons''; and
            (4) by adding at the end the following:
    ``(e) Standards for Investigations and Determinations.--
            ``(1) In general.--The Secretary shall establish 
        standards, including data requirements, for 
        investigations of petitions filed under section 221 and 
        criteria for making determinations under subsection 
        (a).
            ``(2) Consultations.--Not less than 90 days before 
        issuing a final rule with respect to the standards 
        required under paragraph (1), the Secretary shall 
        consult with the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of 
        Representatives with respect to such rule.''.

SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.

    (a) In General.--Section 282 of the Trade Act of 1974 (19 
U.S.C. 2393) is amended--
            (1) in the heading, by striking ``SYSTEM'' and 
        inserting ``AND DATA COLLECTION'';
            (2) in the first sentence--
                    (A) by striking ``The Secretary'' and 
                inserting ``(a) Monitoring Programs.--The 
                Secretary'';
                    (B) by inserting ``and services'' after 
                ``imports of articles'';
                    (C) by inserting ``and domestic supply of 
                services'' after ``domestic production'';
                    (D) by inserting ``or supplying services'' 
                after ``producing articles''; and
                    (E) by inserting ``, or supply of 
                services,'' after ``changes in production''; 
                and
            (3) by adding at the end the following:
    ``(b) Collection of Data and Reports on Service Sector.--
            ``(1) Secretary of labor.--Not later than 90 days 
        after the date of the enactment of this subsection, the 
        Secretary of Labor shall implement a system to collect 
        data on adversely affected workers employed in the 
        service sector that includes the number of workers by 
        State and industry, and by the cause of the dislocation 
        of each worker, as identified in the certification.
            ``(2) Secretary of commerce.--Not later than 1 year 
        after such date of enactment, the Secretary of Commerce 
        shall, in consultation with the Secretary of Labor, 
        conduct a study and submit to the Committee on Finance 
        of the Senate and the Committee on Ways and Means of 
        the House of Representatives a report on ways to 
        improve the timeliness and coverage of data on trade in 
        services, including methods to identify increased 
        imports due to the relocation of United States firms to 
        foreign countries, and increased imports due to United 
        States firms acquiring services from firms in foreign 
        countries.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
282 and inserting the following:

``Sec. 282. Trade monitoring and data collection.''.

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

    Subpart B--Industry Notifications Following Certain Affirmative 
                             Determinations

SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.

    (a) In General.--Section 224 of the Trade Act of 1974 (19 
U.S.C. 2274) is amended--
            (1) by amending the heading to read as follows:

``SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE 
                    DETERMINATIONS; INDUSTRY NOTIFICATION OF 
                    ASSISTANCE.'';

            (2) in subsection (a), by striking ``Whenever'' and 
        inserting ``Study of Domestic Industry.--Whenever'';
            (3) in subsection (b)--
                    (A) by striking ``The report'' and 
                inserting ``Report by the Secretary.--The 
                report''; and
                    (B) by inserting ``and on the website of 
                the Department of Labor'' after ``Federal 
                Register''; and
            (4) by adding at the end the following:
    ``(c) Notifications Following Affirmative Global Safeguard 
Determinations.--Upon making an affirmative determination under 
section 202(b)(1), the Commission shall promptly notify the 
Secretary of Labor and the Secretary of Commerce and, in the 
case of a determination with respect to an agricultural 
commodity, the Secretary of Agriculture, of the determination.
    ``(d) Notifications Following Affirmative Bilateral or 
Plurilateral Safeguard Determinations.--
            ``(1) Notifications of determinations of market 
        disruption.--Upon making an affirmative determination 
        under section 421(b)(1), the Commission shall promptly 
        notify the Secretary of Labor and the Secretary of 
        Commerce and, in the case of a determination with 
        respect to an agricultural commodity, the Secretary of 
        Agriculture, of the determination.
            ``(2) Notifications regarding trade agreement 
        safeguards.--Upon making an affirmative determination 
        in a proceeding initiated under an applicable safeguard 
        provision (other than a provision described in 
        paragraph (3)) that is enacted to implement a trade 
        agreement to which the United States is a party, the 
        Commission shall promptly notify the Secretary of Labor 
        and the Secretary of Commerce and, in the case of a 
        determination with respect to an agricultural 
        commodity, the Secretary of Agriculture, of the 
        determination.
            ``(3) Notifications regarding textile and apparel 
        safeguards.--Upon making an affirmative determination 
        in a proceeding initiated under any safeguard provision 
        relating to textile and apparel articles that is 
        enacted to implement a trade agreement to which the 
        United States is a party, the President shall promptly 
        notify the Secretary of Labor and the Secretary of 
        Commerce of the determination.
    ``(e) Notifications Following Certain Affirmative 
Determinations Under Title VII of the Tariff Act of 1930.--Upon 
making an affirmative determination under section 705(b)(1)(A) 
or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 
1671d(b)(1)(A) and 1673d(b)(1)(A)), the Commission shall 
promptly notify the Secretary of Labor and the Secretary of 
Commerce and, in the case of a determination with respect to an 
agricultural commodity, the Secretary of Agriculture, of the 
determination.
    ``(f) Industry Notification of Assistance.--Upon receiving 
a notification of a determination under subsection (c), (d), or 
(e) with respect to a domestic industry--
            ``(1) the Secretary of Labor shall--
                    ``(A) notify the representatives of the 
                domestic industry affected by the 
                determination, firms publicly identified by 
                name during the course of the proceeding 
                relating to the determination, and any 
                certified or recognized union or, to the extent 
                practicable, other duly authorized 
                representative of workers employed by such 
                representatives of the domestic industry, of--
                            ``(i) the allowances, training, 
                        employment services, and other benefits 
                        available under this chapter;
                            ``(ii) the manner in which to file 
                        a petition and apply for such benefits; 
                        and
                            ``(iii) the availability of 
                        assistance in filing such petitions;
                    ``(B) notify the Governor of each State in 
                which one or more firms in the industry 
                described in subparagraph (A) are located of 
                the Commission's determination and the identity 
                of the firms; and
                    ``(C) upon request, provide any assistance 
                that is necessary to file a petition under 
                section 221;
            ``(2) the Secretary of Commerce shall--
                    ``(A) notify the representatives of the 
                domestic industry affected by the determination 
                and any firms publicly identified by name 
                during the course of the proceeding relating to 
                the determination of--
                            ``(i) the benefits available under 
                        chapter 3;
                            ``(ii) the manner in which to file 
                        a petition and apply for such benefits; 
                        and
                            ``(iii) the availability of 
                        assistance in filing such petitions; 
                        and
                    ``(B) upon request, provide any assistance 
                that is necessary to file a petition under 
                section 251; and
            ``(3) in the case of an affirmative determination 
        based upon imports of an agricultural commodity, the 
        Secretary of Agriculture shall--
                    ``(A) notify representatives of the 
                domestic industry affected by the determination 
                and any agricultural commodity producers 
                publicly identified by name during the course 
                of the proceeding relating to the determination 
                of--
                            ``(i) the benefits available under 
                        chapter 6;
                            ``(ii) the manner in which to file 
                        a petition and apply for such benefits; 
                        and
                            ``(iii) the availability of 
                        assistance in filing such petitions; 
                        and
                    ``(B) upon request, provide any assistance 
                that is necessary to file a petition under 
                section 292.
    ``(g) Representatives of the Domestic Industry.--For 
purposes of subsection (f), the term `representatives of the 
domestic industry' means the persons that petitioned for relief 
in connection with--
            ``(1) a proceeding under section 202 or 421 of this 
        Act;
            ``(2) a proceeding under section 702(b) or 732(b) 
        of the Tariff Act of 1930 (19 U.S.C. 1671d(b) and 
        1673d(b)); or
            ``(3) any safeguard investigation described in 
        subsection (d)(2) or (d)(3).''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
224 and inserting the following:

``Sec. 224. Study and notifications regarding certain affirmative 
          determinations; industry notification of assistance.''.

SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.

    Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is 
amended by adding at the end the following:
    ``(c) Upon issuing a certification under section 223, the 
Secretary shall notify the Secretary of Commerce of the 
identity of each firm covered by the certification.''.

                      Subpart C--Program Benefits

SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.

    (a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act 
of 1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
            (1) by striking subclauses (I) and (II) and 
        inserting the following:
                            ``(I) in the case of a worker whose 
                        most recent total separation from 
                        adversely affected employment that 
                        meets the requirements of paragraphs 
                        (1) and (2) occurs after the date on 
                        which the Secretary issues a 
                        certification covering the worker, the 
                        last day of the 26th week after such 
                        total separation,
                            ``(II) in the case of a worker 
                        whose most recent total separation from 
                        adversely affected employment that 
                        meets the requirements of paragraphs 
                        (1) and (2) occurs before the date on 
                        which the Secretary issues a 
                        certification covering the worker, the 
                        last day of the 26th week after the 
                        date of such certification,'';
            (2) in subclause (III)--
                    (A) by striking ``later of the dates 
                specified in subclause (I) or (II)'' and 
                inserting ``date specified in subclause (I) or 
                (II), as the case may be''; and
                    (B) by striking ``or'' at the end;
            (3) by redesignating subclause (IV) as subclause 
        (V); and
            (4) by inserting after subclause (III) the 
        following:
                            ``(IV) in the case of a worker who 
                        fails to enroll by the date required by 
                        subclause (I), (II), or (III), as the 
                        case may be, due to the failure to 
                        provide the worker with timely 
                        information regarding the date 
                        specified in such subclause, the last 
                        day of a period determined by the 
                        Secretary, or''.
    (b) Waivers of Training Requirements.--Section 231(c) of 
the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``The worker possesses'' 
                and inserting the following:
                            ``(i) In general.--The worker 
                        possesses''; and
                    (B) by adding at the end the following:
                            ``(ii) Marketable skills defined.--
                        For purposes of clause (i), the term 
                        `marketable skills' may include the 
                        possession of a postgraduate degree 
                        from an institution of higher education 
                        (as defined in section 102 of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1002)) or an equivalent institution, or 
                        the possession of an equivalent 
                        postgraduate certification in a 
                        specialized field.'';
            (2) in paragraph (2)(A), by striking ``A waiver'' 
        and inserting ``Except as provided in paragraph (3)(B), 
        a waiver''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking 
                ``Pursuant to an agreement under section 239, 
                the Secretary may authorize a'' and inserting 
                ``An agreement under section 239 shall 
                authorize a'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) Review of waivers.--An agreement 
                under section 239 shall require a cooperating 
                State to review each waiver issued by the State 
                under subparagraph (A), (B), (D), (E), or (F) 
                of paragraph (1)--
                            ``(i) 3 months after the date on 
                        which the State issues the waiver; and
                            ``(ii) on a monthly basis 
                        thereafter.''.
    (c) Conforming Amendments.--
            (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 
        2291), as amended, is further amended--
                    (A) in subsection (a), in the matter 
                preceding paragraph (1), by striking ``more 
                than 60 days'' and all that follows through 
                ``section 221'' and inserting ``on or after the 
                date of such certification''; and
                    (B) in subsection (b)--
                            (i) by striking paragraph (2); and
                            (ii) in paragraph (1)--
                                    (I) by striking ``(1)'';
                                    (II) by redesignating 
                                subparagraphs (A) and (B) as 
                                paragraphs (1) and (2), 
                                respectively;
                                    (III) by redesignating 
                                clauses (i) and (ii) as 
                                subparagraphs (A) and (B), 
                                respectively; and
                                    (IV) by redesignating 
                                subclauses (I) and (II) as 
                                clauses (i) and (ii), 
                                respectively.
            (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 
        2293) is amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) 
                through (g) as subsections (b) through (f), 
                respectively.

SEC. 1822. WEEKLY AMOUNTS.

    Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``subsections (b) and (c)'' 
                and inserting ``subsections (b), (c), and 
                (d)'';
                    (B) by striking ``total unemployment'' the 
                first place it appears and inserting 
                ``unemployment''; and
                    (C) in paragraph (2), by inserting before 
                the period the following: ``, except that in 
                the case of an adversely affected worker who is 
                participating in training under this chapter, 
                such income shall not include earnings from 
                work for such week that are equal to or less 
                than the most recent weekly benefit amount of 
                the unemployment insurance payable to the 
                worker for a week of total unemployment 
                preceding the worker's first exhaustion of 
                unemployment insurance (as determined for 
                purposes of section 231(a)(3)(B))''; and
            (2) by adding at the end the following:
    ``(d) Election of Trade Readjustment Allowance or 
Unemployment Insurance.--Notwithstanding section 231(a)(3)(B), 
an adversely affected worker may elect to receive a trade 
readjustment allowance instead of unemployment insurance during 
any week with respect to which the worker--
            ``(1) is entitled to receive unemployment insurance 
        as a result of the establishment by the worker of a new 
        benefit year under State law, based in whole or in part 
        upon part-time or short-term employment in which the 
        worker engaged after the worker's most recent total 
        separation from adversely affected employment; and
            ``(2) is otherwise entitled to a trade readjustment 
        allowance.''.

SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR 
                    EXTENDED TRAINING AND BREAKS IN TRAINING.

    Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) 
is amended--
            (1) in paragraph (2), by inserting ``under 
        paragraph (1)'' after ``trade readjustment allowance''; 
        and
            (2) in paragraph (3)--
                    (A) in the matter preceding subparagraph 
                (A)--
                            (i) by striking ``training approved 
                        for him'' and inserting ``a training 
                        program approved for the worker'';
                            (ii) by striking ``52 additional 
                        weeks'' and inserting ``78 additional 
                        weeks''; and
                            (iii) by striking ``52-week'' and 
                        inserting ``91-week''; and
                    (B) in the matter following subparagraph 
                (B), by striking ``52-week'' and inserting 
                ``91-week''.

SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.

    Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as 
amended, is further amended by adding at the end the following:
    ``(g) Special Rule for Calculating Separation.--
Notwithstanding any other provision of this chapter, any period 
during which a judicial or administrative appeal is pending 
with respect to the denial by the Secretary of a petition under 
section 223 shall not be counted for purposes of calculating 
the period of separation under subsection (a)(2).
    ``(h) Special Rule for Justifiable Cause.--If the Secretary 
determines that there is justifiable cause, the Secretary may 
extend the period during which trade readjustment allowances 
are payable to an adversely affected worker under paragraphs 
(2) and (3) of subsection (a) (but not the maximum amounts of 
such allowances that are payable under this section).
    ``(i) Special Rule With Respect to Military Service.--
            ``(1) In general.--Notwithstanding any other 
        provision of this chapter, the Secretary may waive any 
        requirement of this chapter that the Secretary 
        determines is necessary to ensure that an adversely 
        affected worker who is a member of a reserve component 
        of the Armed Forces and serves a period of duty 
        described in paragraph (2) is eligible to receive a 
        trade readjustment allowance, training, and other 
        benefits under this chapter in the same manner and to 
        the same extent as if the worker had not served the 
        period of duty.
            ``(2) Period of duty described.--An adversely 
        affected worker serves a period of duty described in 
        this paragraph if, before completing training under 
        section 236, the worker--
                    ``(A) serves on active duty for a period of 
                more than 30 days under a call or order to 
                active duty of more than 30 days; or
                    ``(B) in the case of a member of the Army 
                National Guard of the United States or Air 
                National Guard of the United States, performs 
                full-time National Guard duty under section 
                502(f) of title 32, United States Code, for 30 
                consecutive days or more when authorized by the 
                President or the Secretary of Defense for the 
                purpose of responding to a national emergency 
                declared by the President and supported by 
                Federal funds.''.

SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR 
                    WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.

    Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is 
amended--
            (1) by striking ``Except where inconsistent'' and 
        inserting ``(a) In General.--Except where 
        inconsistent''; and
            (2) by adding at the end the following:
    ``(b) Special Rule With Respect to State Laws and 
Regulations on Good Cause for Waiver of Time Limits or Late 
Filing of Claims.--Any law, regulation, policy, or practice of 
a cooperating State that allows for a waiver for good cause of 
any time limitation relating to the administration of the State 
unemployment insurance law shall, in the administration of the 
program under this chapter by the State, apply to any time 
limitation with respect to an application for a trade 
readjustment allowance or enrollment in training under this 
chapter.''.

SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    (a) In General.--Section 235 of the Trade Act of 1974 (19 
U.S.C. 2295) is amended to read as follows:

``SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    ``The Secretary shall make available, directly or through 
agreements with States under section 239, to adversely affected 
workers and adversely affected incumbent workers covered by a 
certification under subchapter A of this chapter the following 
employment and case management services:
            ``(1) Comprehensive and specialized assessment of 
        skill levels and service needs, including through--
                    ``(A) diagnostic testing and use of other 
                assessment tools; and
                    ``(B) in-depth interviewing and evaluation 
                to identify employment barriers and appropriate 
                employment goals.
            ``(2) Development of an individual employment plan 
        to identify employment goals and objectives, and 
        appropriate training to achieve those goals and 
        objectives.
            ``(3) Information on training available in local 
        and regional areas, information on individual 
        counseling to determine which training is suitable 
        training, and information on how to apply for such 
        training.
            ``(4) Information on how to apply for financial 
        aid, including referring workers to educational 
        opportunity centers described in section 402F of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a-16), 
        where applicable, and notifying workers that the 
        workers may request financial aid administrators at 
        institutions of higher education (as defined in section 
        102 of such Act (20 U.S.C. 1002)) to use the 
        administrators' discretion under section 479A of such 
        Act (20 U.S.C. 1087tt) to use current year income data, 
        rather than preceding year income data, for determining 
        the amount of need of the workers for Federal financial 
        assistance under title IV of such Act (20 U.S.C. 1070 
        et seq.).
            ``(5) Short-term prevocational services, including 
        development of learning skills, communications skills, 
        interviewing skills, punctuality, personal maintenance 
        skills, and professional conduct to prepare individuals 
        for employment or training.
            ``(6) Individual career counseling, including job 
        search and placement counseling, during the period in 
        which the individual is receiving a trade adjustment 
        allowance or training under this chapter, and after 
        receiving such training for purposes of job placement.
            ``(7) Provision of employment statistics 
        information, including the provision of accurate 
        information relating to local, regional, and national 
        labor market areas, including--
                    ``(A) job vacancy listings in such labor 
                market areas;
                    ``(B) information on jobs skills necessary 
                to obtain jobs identified in job vacancy 
                listings described in subparagraph (A);
                    ``(C) information relating to local 
                occupations that are in demand and earnings 
                potential of such occupations; and
                    ``(D) skills requirements for local 
                occupations described in subparagraph (C).
            ``(8) Information relating to the availability of 
        supportive services, including services relating to 
        child care, transportation, dependent care, housing 
        assistance, and need-related payments that are 
        necessary to enable an individual to participate in 
        training.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
235 and inserting the following:

``235. Employment and case management services.''.

SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT 
                    SERVICES.

    (a) In General.--Part II of subchapter B of chapter 2 of 
title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is 
amended by inserting after section 235 the following:

``SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND 
                    CASE MANAGEMENT SERVICES.

    ``(a) Funding for Administrative Expenses and Employment 
and Case Management Services.--
            ``(1) In general.--In addition to any funds made 
        available to a State to carry out section 236 for a 
        fiscal year, the State shall receive for the fiscal 
        year a payment in an amount that is equal to 15 percent 
        of the amount of such funds.
            ``(2) Use of funds.--A State that receives a 
        payment under paragraph (1) shall--
                    ``(A) use not more than \2/3\ of such 
                payment for the administration of the trade 
                adjustment assistance for workers program under 
                this chapter, including for--
                            ``(i) processing waivers of 
                        training requirements under section 
                        231;
                            ``(ii) collecting, validating, and 
                        reporting data required under this 
                        chapter; and
                            ``(iii) providing reemployment 
                        trade adjustment assistance under 
                        section 246; and
                    ``(B) use not less than \1/3\ of such 
                payment for employment and case management 
                services under section 235.
    ``(b) Additional Funding for Employment and Case Management 
Services.--
            ``(1) In general.--In addition to any funds made 
        available to a State to carry out section 236 and the 
        payment under subsection (a)(1) for a fiscal year, the 
        Secretary shall provide to the State for the fiscal 
        year a payment in the amount of $350,000.
            ``(2) Use of funds.--A State that receives a 
        payment under paragraph (1) shall use such payment for 
        the purpose of providing employment and case management 
        services under section 235.
            ``(3) Voluntary return of funds.--A State that 
        receives a payment under paragraph (1) may decline or 
        otherwise return such payment to the Secretary.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 235 the following:

``Sec. 235A. Funding for administrative expenses and employment and case 
          management services.''.

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

SEC. 1828. TRAINING FUNDING.

    (a) In General.--Section 236(a)(2) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(2)) is amended to read as follows:
    ``(2)(A) The total amount of payments that may be made 
under paragraph (1) shall not exceed--
            ``(i) for each of the fiscal years 2009 and 2010, 
        $575,000,000; and
            ``(ii) for the period beginning October 1, 2010, 
        and ending December 31, 2010, $143,750,000.
    ``(B)(i) The Secretary shall, as soon as practicable after 
the beginning of each fiscal year, make an initial distribution 
of the funds made available to carry out this section, in 
accordance with the requirements of subparagraph (C).
    ``(ii) The Secretary shall ensure that not less than 90 
percent of the funds made available to carry out this section 
for a fiscal year are distributed to the States by not later 
than July 15 of that fiscal year.
    ``(C)(i) In making the initial distribution of funds 
pursuant to subparagraph (B)(i) for a fiscal year, the 
Secretary shall hold in reserve 35 percent of the funds made 
available to carry out this section for that fiscal year for 
additional distributions during the remainder of the fiscal 
year.
    ``(ii) Subject to clause (iii), in determining how to 
apportion the initial distribution of funds pursuant to 
subparagraph (B)(i) in a fiscal year, the Secretary shall take 
into account, with respect to each State--
            ``(I) the trend in the number of workers covered by 
        certifications of eligibility under this chapter during 
        the most recent 4 consecutive calendar quarters for 
        which data are available;
            ``(II) the trend in the number of workers 
        participating in training under this section during the 
        most recent 4 consecutive calendar quarters for which 
        data are available;
            ``(III) the number of workers estimated to be 
        participating in training under this section during the 
        fiscal year;
            ``(IV) the amount of funding estimated to be 
        necessary to provide training approved under this 
        section to such workers during the fiscal year; and
            ``(V) such other factors as the Secretary considers 
        appropriate relating to the provision of training under 
        this section.
    ``(iii) In no case may the amount of the initial 
distribution to a State pursuant to subparagraph (B)(i) in a 
fiscal year be less than 25 percent of the initial distribution 
to the State in the preceding fiscal year.
    ``(D) The Secretary shall establish procedures for the 
distribution of the funds that remain available for the fiscal 
year after the initial distribution required under subparagraph 
(B)(i). Such procedures may include the distribution of funds 
pursuant to requests submitted by States in need of such funds.
    ``(E) If, during a fiscal year, the Secretary estimates 
that the amount of funds necessary to pay the costs of training 
approved under this section will exceed the dollar amount 
limitation specified in subparagraph (A), the Secretary shall 
decide how the amount of funds made available to carry out this 
section that have not been distributed at the time of the 
estimate will be apportioned among the States for the remainder 
of the fiscal year.''.
    (b) Determinations Regarding Training.--Section 236(a)(9) 
of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
            (1) by striking ``The Secretary'' and inserting 
        ``(A) Subject to subparagraph (B), the Secretary''; and
            (2) by adding at the end the following:
    ``(B)(i) In determining under paragraph (1)(E) whether a 
worker is qualified to undertake and complete training, the 
Secretary may approve training for a period longer than the 
worker's period of eligibility for trade readjustment 
allowances under part I if the worker demonstrates a financial 
ability to complete the training after the expiration of the 
worker's period of eligibility for such trade readjustment 
allowances.
    ``(ii) In determining the reasonable cost of training under 
paragraph (1)(F) with respect to a worker, the Secretary may 
consider whether other public or private funds are reasonably 
available to the worker, except that the Secretary may not 
require a worker to obtain such funds as a condition of 
approval of training under paragraph (1).''.
    (c) Regulations.--Section 236 of the Trade Act of 1974 (19 
U.S.C. 2296) is amended by adding at the end the following:
    ``(g) Regulations With Respect to Apportionment of Training 
Funds to States.--
            ``(1) In general.--Not later than 1 year after the 
        date of the enactment of this subsection, the Secretary 
        shall issue such regulations as may be necessary to 
        carry out the provisions of subsection (a)(2).
            ``(2) Consultations.--The Secretary shall consult 
        with the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of 
        Representatives not less than 90 days before issuing 
        any regulation pursuant to paragraph (1).''.
    (d) Effective Date.--This section and the amendments made 
by this section shall take effect upon the expiration of the 
90-day period beginning on the date of the enactment of this 
Act, except that--
            (1) subparagraph (A) of section 236(a)(2) of the 
        Trade Act of 1974, as amended by subsection (a) of this 
        section, shall take effect on the date of the enactment 
        of this Act; and
            (2) subparagraphs (B), (C), and (D) of such section 
        236(a)(2) shall take effect on October 1, 2009.

SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.

    (a) In General.--Section 236(a)(5) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(5)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of 
                clause (i);
                    (B) by adding ``and'' at the end of clause 
                (ii); and
                    (C) by inserting after clause (ii) the 
                following:
                    ``(iii) apprenticeship programs registered 
                under the Act of August 16, 1937 (commonly 
                known as the `National Apprenticeship Act'; 50 
                Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.),'';
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively;
            (3) by inserting after subparagraph (D) the 
        following:
            ``(E) any program of prerequisite education or 
        coursework required to enroll in training that may be 
        approved under this section,'';
            (4) in subparagraph (F)(ii), as redesignated by 
        paragraph (2), by striking ``and'' at the end;
            (5) in subparagraph (G), as redesignated by 
        paragraph (2), by striking the period at the end and 
        inserting ``, and''; and
            (6) by adding at the end the following:
            ``(H) any training program or coursework at an 
        accredited institution of higher education (described 
        in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002)), including a training program or 
        coursework for the purpose of--
                    ``(i) obtaining a degree or certification; 
                or
                    ``(ii) completing a degree or certification 
                that the worker had previously begun at an 
                accredited institution of higher education.
The Secretary may not limit approval of a training program 
under paragraph (1) to a program provided pursuant to title I 
of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
seq.).''.
    (b) Conforming Amendments.--Section 233 of the Trade Act of 
1974 (19 U.S.C. 2293) is amended--
            (1) in subsection (a)(2), by inserting 
        ``prerequisite education or'' after ``requires a 
        program of''; and
            (2) in subsection (f) (as redesignated by section 
        1821(c) of this subtitle), by inserting ``prerequisite 
        education or'' after ``includes a program of''.
    (c) Technical Corrections.--Section 236 of the Trade Act of 
1974 (19 U.S.C. 2296) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the flush text, by 
                striking ``his behalf'' and inserting ``the 
                worker's behalf''; and
                    (B) in paragraph (3), by striking ``this 
                paragraph (1)'' and inserting ``paragraph 
                (1)''; and
            (2) in subsection (b)(2), by striking ``, and'' and 
        inserting a period.

SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING.

    (a) Pre-Layoff Training.--
            (1) In general.--Section 236(a) of the Trade Act of 
        1974 (19 U.S.C. 2296(a)) is amended--
                    (A) in paragraph (1), by inserting after 
                ``determines'' the following: ``, with respect 
                to an adversely affected worker or an adversely 
                affected incumbent worker,'';
                    (B) in paragraph (4)--
                            (i) in subparagraphs (A) and (B), 
                        by inserting ``or an adversely affected 
                        incumbent worker'' after ``an adversely 
                        affected worker'' each place it 
                        appears; and
                            (ii) in subparagraph (C), by 
                        inserting ``or adversely affected 
                        incumbent worker'' after ``adversely 
                        affected worker'' each place it 
                        appears;
                    (C) in paragraph (5), in the matter 
                preceding subparagraph (A), by striking ``The 
                training programs'' and inserting ``Except as 
                provided in paragraph (10), the training 
                programs'';
                    (D) in paragraph (6)(B), by inserting ``or 
                adversely affected incumbent worker'' after 
                ``adversely affected worker'';
                    (E) in paragraph (7)(B), by inserting ``or 
                adversely affected incumbent worker'' after 
                ``adversely affected worker''; and
                    (F) by inserting after paragraph (9) the 
                following:
    ``(10) In the case of an adversely affected incumbent 
worker, the Secretary may not approve--
            ``(A) on-the-job training under paragraph 
        (5)(A)(i); or
            ``(B) customized training under paragraph 
        (5)(A)(ii), unless such training is for a position 
        other than the worker's adversely affected employment.
    ``(11) If the Secretary determines that an adversely 
affected incumbent worker for whom the Secretary approved 
training under this section is no longer threatened with a 
total or partial separation, the Secretary shall terminate the 
approval of such training.''.
            (2) Definitions.--Section 247 of the Trade Act of 
        1974 (19 U.S.C. 2319), as amended, is further amended 
        by adding at the end the following:
            ``(19) The term `adversely affected incumbent 
        worker' means a worker who--
                    ``(A) is a member of a group of workers who 
                have been certified as eligible to apply for 
                adjustment assistance under subchapter A;
                    ``(B) has not been totally or partially 
                separated from adversely affected employment; 
                and
                    ``(C) the Secretary determines, on an 
                individual basis, is threatened with total or 
                partial separation.''.
    (b) Part-Time Training.--Section 236 of the Trade Act of 
1974 (19 U.S.C. 2296), as amended, is further amended by adding 
at the end the following:
    ``(h) Part-Time Training.--
            ``(1) In general.--The Secretary may approve full-
        time or part-time training for a worker under 
        subsection (a).
            ``(2) Limitation.--Notwithstanding paragraph (1), a 
        worker participating in part-time training approved 
        under subsection (a) may not receive a trade 
        readjustment allowance under section 231.''.

SEC. 1831. ON-THE-JOB TRAINING.

    (a) In General.--Section 236(c) of the Trade Act of 1974 
(19 U.S.C. 2296(c)) is amended--
            (1) by redesignating paragraphs (1) through (10) as 
        subparagraphs (A) through (J) and moving such 
        subparagraphs 2 ems to the right;
            (2) by striking ``(c) The Secretary shall'' and all 
        that follows through ``such costs,'' and inserting the 
        following:
    ``(c) On-the-Job Training Requirements.--
            ``(1) In general.--The Secretary may approve on-
        the-job training for any adversely affected worker if--
                    ``(A) the worker meets the requirements for 
                training to be approved under subsection 
                (a)(1);
                    ``(B) the Secretary determines that on-the-
                job training--
                            ``(i) can reasonably be expected to 
                        lead to suitable employment with the 
                        employer offering the on-the-job 
                        training;
                            ``(ii) is compatible with the 
                        skills of the worker;
                            ``(iii) includes a curriculum 
                        through which the worker will gain the 
                        knowledge or skills to become 
                        proficient in the job for which the 
                        worker is being trained; and
                            ``(iv) can be measured by 
                        benchmarks that indicate that the 
                        worker is gaining such knowledge or 
                        skills; and
                    ``(C) the State determines that the on-the-
                job training program meets the requirements of 
                clauses (iii) and (iv) of subparagraph (B).
            ``(2) Monthly payments.--The Secretary shall pay 
        the costs of on-the-job training approved under 
        paragraph (1) in monthly installments.
            ``(3) Contracts for on-the-job training.--
                    ``(A) In general.--The Secretary shall 
                ensure, in entering into a contract with an 
                employer to provide on-the-job training to a 
                worker under this subsection, that the skill 
                requirements of the job for which the worker is 
                being trained, the academic and occupational 
                skill level of the worker, and the work 
                experience of the worker are taken into 
                consideration.
                    ``(B) Term of contract.--Training under any 
                such contract shall be limited to the period of 
                time required for the worker receiving on-the-
                job training to become proficient in the job 
                for which the worker is being trained, but may 
                not exceed 104 weeks in any case.
            ``(4) Exclusion of certain employers.--The 
        Secretary shall not enter into a contract for on-the-
        job training with an employer that exhibits a pattern 
        of failing to provide workers receiving on-the-job 
        training from the employer with--
                    ``(A) continued, long-term employment as 
                regular employees; and
                    ``(B) wages, benefits, and working 
                conditions that are equivalent to the wages, 
                benefits, and working conditions provided to 
                regular employees who have worked a similar 
                period of time and are doing the same type of 
                work as workers receiving on-the-job training 
                from the employer.
            ``(5) Labor standards.--The Secretary may pay the 
        costs of on-the-job training,''; and
            (3) in paragraph (5), as redesignated--
                    (A) in subparagraph (I), as redesignated by 
                paragraph (1) of this section, by striking 
                ``paragraphs (1), (2), (3), (4), (5), and (6)'' 
                and inserting ``subparagraphs (A), (B), (C), 
                (D), (E), and (F)''; and
                    (B) in subparagraph (J), as redesignated by 
                paragraph (1) of this section, by striking 
                ``paragraph (8)'' and inserting ``subparagraph 
                (H)''.
    (b) Repeal of Preference for Training on the Job.--Section 
236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is 
amended by striking the last sentence.

SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS 
                    WHILE IN TRAINING.

    Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) 
is amended to read as follows:
    ``(d) Eligibility.--An adversely affected worker may not be 
determined to be ineligible or disqualified for unemployment 
insurance or program benefits under this subchapter--
            ``(1) because the worker--
                    ``(A) is enrolled in training approved 
                under subsection (a);
                    ``(B) left work--
                            ``(i) that was not suitable 
                        employment in order to enroll in such 
                        training; or
                            ``(ii) that the worker engaged in 
                        on a temporary basis during a break in 
                        such training or a delay in the 
                        commencement of such training; or
                    ``(C) left on-the-job training not later 
                than 30 days after commencing such training 
                because the training did not meet the 
                requirements of subsection (c)(1)(B); or
            ``(2) because of the application to any such week 
        in training of the provisions of State law or Federal 
        unemployment insurance law relating to availability for 
        work, active search for work, or refusal to accept 
        work.''.

SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.

    (a) Job Search Allowances.--Section 237 of the Trade Act of 
1974 (19 U.S.C. 2297) is amended--
            (1) in subsection (a)(2)(C)(ii), by striking ``, 
        unless the worker received a waiver under section 
        231(c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``90 
                percent of the cost of'' and inserting ``all''; 
                and
                    (B) in paragraph (2), by striking 
                ``$1,250'' and inserting ``$1,500''.
    (b) Relocation Allowances.--Section 238 of the Trade Act of 
1974 (19 U.S.C. 2298) is amended--
            (1) in subsection (a)(2)(E)(ii), by striking ``, 
        unless the worker received a waiver under section 
        231(c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``90 
                percent of the'' and inserting ``all''; and
                    (B) in paragraph (2), by striking 
                ``$1,250'' and inserting ``$1,500''.

      Subpart D--Reemployment Trade Adjustment Assistance Program

SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) In General.--Section 246 of the Trade Act of 1974 (19 
U.S.C. 2318) is amended--
            (1) by amending the heading to read as follows:

``SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.'';

            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Not later than'' 
                        and all that follows through ``2002, 
                        the Secretary'' and inserting ``The 
                        Secretary''; and
                            (ii) by striking ``an alternative 
                        trade adjustment assistance program for 
                        older workers'' and inserting ``a 
                        reemployment trade adjustment 
                        assistance program'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in the matter preceding 
                                clause (i), by striking ``for a 
                                period not to exceed 2 years'' 
                                and inserting ``for the 
                                eligibility period under 
                                subparagraph (A) or (B) of 
                                paragraph (4) (as the case may 
                                be)''; and
                                    (II) by striking clauses 
                                (i) and (ii) and inserting the 
                                following:
                            ``(i) the wages received by the 
                        worker at the time of separation; and
                            ``(ii) the wages received by the 
                        worker from reemployment.'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``for a 
                                period not to exceed 2 years'' 
                                and inserting ``for the 
                                eligibility period under 
                                subparagraph (A) or (B) of 
                                paragraph (4) (as the case may 
                                be)''; and
                                    (II) by striking ``, as 
                                added by section 201 of the 
                                Trade Act of 2002''; and
                            (iii) by adding at the end the 
                        following:
                    ``(C) Training and other services.--A 
                worker described in paragraph (3)(B) 
                participating in the program established under 
                paragraph (1) is eligible to receive training 
                approved under section 236 and employment and 
                case management services under section 235.''; 
                and
                    (C) by striking paragraphs (3) through (5) 
                and inserting the following:
            ``(3) Eligibility.--
                    ``(A) In general.--A group of workers 
                certified under subchapter A as eligible for 
                adjustment assistance under subchapter A is 
                eligible for benefits described in paragraph 
                (2) under the program established under 
                paragraph (1).
                    ``(B) Individual eligibility.--A worker in 
                a group of workers described in subparagraph 
                (A) may elect to receive benefits described in 
                paragraph (2) under the program established 
                under paragraph (1) if the worker--
                            ``(i) is at least 50 years of age;
                            ``(ii) earns not more than $55,000 
                        each year in wages from reemployment;
                            ``(iii)(I) is employed on a full-
                        time basis as defined by the law of the 
                        State in which the worker is employed 
                        and is not enrolled in a training 
                        program approved under section 236; or
                            ``(II) is employed at least 20 
                        hours per week and is enrolled in a 
                        training program approved under section 
                        236; and
                            ``(iv) is not employed at the firm 
                        from which the worker was separated.
            ``(4) Eligibility period for payments.--
                    ``(A) Worker who has not received trade 
                readjustment allowance.--In the case of a 
                worker described in paragraph (3)(B) who has 
                not received a trade readjustment allowance 
                under part I of subchapter B pursuant to the 
                certification described in paragraph (3)(A), 
                the worker may receive benefits described in 
                paragraph (2) for a period not to exceed 2 
                years beginning on the earlier of--
                            ``(i) the date on which the worker 
                        exhausts all rights to unemployment 
                        insurance based on the separation of 
                        the worker from the adversely affected 
                        employment that is the basis of the 
                        certification; or
                            ``(ii) the date on which the worker 
                        obtains reemployment described in 
                        paragraph (3)(B).
                    ``(B) Worker who has received trade 
                readjustment allowance.--In the case of a 
                worker described in paragraph (3)(B) who has 
                received a trade readjustment allowance under 
                part I of subchapter B pursuant to the 
                certification described in paragraph (3)(A), 
                the worker may receive benefits described in 
                paragraph (2) for a period of 104 weeks 
                beginning on the date on which the worker 
                obtains reemployment described in paragraph 
                (3)(B), reduced by the total number of weeks 
                for which the worker received such trade 
                readjustment allowance.
            ``(5) Total amount of payments.--
                    ``(A) In general.--The payments described 
                in paragraph (2)(A) made to a worker may not 
                exceed--
                            ``(i) $12,000 per worker during the 
                        eligibility period under paragraph 
                        (4)(A); or
                            ``(ii) the amount described in 
                        subparagraph (B) per worker during the 
                        eligibility period under paragraph 
                        (4)(B).
                    ``(B) Amount described.--The amount 
                described in this subparagraph is the amount 
                equal to the product of--
                            ``(i) $12,000, and
                            ``(ii) the ratio of--
                                    ``(I) the total number of 
                                weeks in the eligibility period 
                                under paragraph (4)(B) with 
                                respect to the worker, to
                                    ``(II) 104 weeks.
            ``(6) Calculation of amount of payments for certain 
        workers.--
                    ``(A) In general.--In the case of a worker 
                described in paragraph (3)(B)(iii)(II), 
                paragraph (2)(A) shall be applied by 
                substituting the percentage described in 
                subparagraph (B) for `50 percent'.
                    ``(B) Percentage described.--The percentage 
                described in this subparagraph is the 
                percentage--
                            ``(i) equal to \1/2\ of the ratio 
                        of--
                                    ``(I) the number of weekly 
                                hours of employment of the 
                                worker referred to in paragraph 
                                (3)(B)(iii)(II), to
                                    ``(II) the number of weekly 
                                hours of employment of the 
                                worker at the time of 
                                separation, but
                            ``(ii) in no case more than 50 
                        percent.
            ``(7) Limitation on other benefits.--A worker 
        described in paragraph (3)(B) may not receive a trade 
        readjustment allowance under part I of subchapter B 
        pursuant to the certification described in paragraph 
        (3)(A) during any week for which the worker receives a 
        payment described in paragraph (2)(A).''; and
            (3) in subsection (b)(2), by striking ``subsection 
        (a)(3)(B)'' and inserting ``subsection (a)(3)''.
    (b) Extension of Program.--Section 246(b)(1) of the Trade 
Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the 
date that is 5 years'' and all that follows through the end 
period and inserting ``December 31, 2010.''.
    (c) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
246 and inserting the following:

``Sec. 246. Reemployment trade adjustment assistance program.''.

                        Subpart E--Other Matters

SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Subchapter C of chapter 2 of title II of 
the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by 
adding at the end the following:

``SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

    ``(a) Establishment.--There is established in the 
Department of Labor an office to be known as the Office of 
Trade Adjustment Assistance (in this section referred to as the 
`Office').
    ``(b) Head of Office.--The head of the Office shall be an 
administrator, who shall report directly to the Deputy 
Assistant Secretary for Employment and Training.
    ``(c) Principal Functions.--The principal functions of the 
administrator of the Office shall be--
            ``(1) to oversee and implement the administration 
        of trade adjustment assistance program under this 
        chapter; and
            ``(2) to carry out functions delegated to the 
        Secretary of Labor under this chapter, including--
                    ``(A) making determinations under section 
                223;
                    ``(B) providing information under section 
                225 about trade adjustment assistance to 
                workers and assisting such workers to prepare 
                petitions or applications for program benefits;
                    ``(C) providing assistance to employers of 
                groups of workers that have filed petitions 
                under section 221 in submitting information 
                required by the Secretary relating to the 
                petitions;
                    ``(D) ensuring workers covered by a 
                certification of eligibility under subchapter A 
                receive the employment and case management 
                services described in section 235;
                    ``(E) ensuring that States fully comply 
                with agreements entered into under section 239;
                    ``(F) advocating for workers applying for 
                benefits available under this chapter;
                    ``(G) establishing and overseeing a hotline 
                that workers, employers, and other entities may 
                call to obtain information regarding 
                eligibility criteria, procedural requirements, 
                and benefits available under this chapter; and
                    ``(H) carrying out such other duties with 
                respect to this chapter as the Secretary 
                specifies for purposes of this section.
    ``(d) Administration.--
            ``(1) Designation.--The administrator shall 
        designate an employee of the Department of Labor with 
        appropriate experience and expertise to carry out the 
        duties described in paragraph (2).
            ``(2) Duties.--The employee designated under 
        paragraph (1) shall--
                    ``(A) receive complaints and requests for 
                assistance related to the trade adjustment 
                assistance program under this chapter;
                    ``(B) resolve such complaints and requests 
                for assistance, in coordination with other 
                employees of the Office;
                    ``(C) compile basic information concerning 
                such complaints and requests for assistance; 
                and
                    ``(D) carry out such other duties with 
                respect to this chapter as the Secretary 
                specifies for purposes of this section.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 249 the following:

``Sec. 249A. Office of Trade Adjustment Assistance.''.

SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION 
                    OF PROGRAM DATA; AGREEMENTS WITH STATES.

    (a) In General.--Section 239(a) of the Trade Act of 1974 
(19 U.S.C. 2311(a)) is amended--
            (1) by amending clause (2) to read as follows: 
        ``(2) in accordance with subsection (f), shall make 
        available to adversely affected workers and adversely 
        affected incumbent workers covered by a certification 
        under subchapter A the employment and case management 
        services described in section 235,''; and
            (2) by striking ``will'' each place it appears and 
        inserting ``shall''.
    (b) Form and Manner of Data.--Section 239 of the Trade Act 
of 1974 (19 U.S.C. 2311) is amended--
            (1) by redesignating subsections (c) through (g) as 
        subsections (d) through (h), respectively; and
            (2) by inserting after subsection (b) the 
        following:
    ``(c) Form and Manner of Data.--Each agreement under this 
subchapter shall--
            ``(1) provide the Secretary with the authority to 
        collect any data the Secretary determines necessary to 
        meet the requirements of this chapter; and
            ``(2) specify the form and manner in which any such 
        data requested by the Secretary shall be reported.''.
    (c) State Activities.--Section 239(g) of the Trade Act of 
1974 (as redesignated) is amended--
            (1) in paragraph (3), by striking ``and'' at the 
        end;
            (2) by amending paragraph (4) to read as follows:
            ``(4) perform outreach to, intake of, and 
        orientation for adversely affected workers and 
        adversely affected incumbent workers covered by a 
        certification under subchapter A with respect to 
        assistance and benefits available under this chapter, 
        and''; and
            (3) by adding at the end the following:
            ``(5) make employment and case management services 
        described in section 235 available to adversely 
        affected workers and adversely affected incumbent 
        workers covered by a certification under subchapter A 
        and, if funds provided to carry out this chapter are 
        insufficient to make such services available, make 
        arrangements to make such services available through 
        other Federal programs.''.
    (d) Reporting Requirement.--Section 239(h) of the Trade Act 
of 1974 (as redesignated) is amended by striking ``1998.'' and 
inserting ``1998 (29 U.S.C. 2822(b)) and a description of the 
State's rapid response activities under section 
221(a)(2)(A).''.
    (e) Control Measures.--Section 239 of the Trade Act of 1974 
(19 U.S.C. 2311), as amended, is further amended by adding at 
the end the following:
    ``(i) Control Measures.--
            ``(1) In general.--The Secretary shall require each 
        cooperating State and cooperating State agency to 
        implement effective control measures and to effectively 
        oversee the operation and administration of the trade 
        adjustment assistance program under this chapter, 
        including by means of monitoring the operation of 
        control measures to improve the accuracy and timeliness 
        of the data being collected and reported.
            ``(2) Definition.--For purposes of paragraph (1), 
        the term `control measures' means measures that--
                    ``(A) are internal to a system used by a 
                State to collect data; and
                    ``(B) are designed to ensure the accuracy 
                and verifiability of such data.
    ``(j) Data Reporting.--
            ``(1) In general.--Any agreement entered into under 
        this section shall require the cooperating State or 
        cooperating State agency to report to the Secretary on 
        a quarterly basis comprehensive performance 
        accountability data, to consist of--
                    ``(A) the core indicators of performance 
                described in paragraph (2)(A);
                    ``(B) the additional indicators of 
                performance described in paragraph (2)(B), if 
                any; and
                    ``(C) a description of efforts made to 
                improve outcomes for workers under the trade 
                adjustment assistance program.
            ``(2) Core indicators described.--
                    ``(A) In general.--The core indicators of 
                performance described in this paragraph are--
                            ``(i) the percentage of workers 
                        receiving benefits under this chapter 
                        who are employed during the second 
                        calendar quarter following the calendar 
                        quarter in which the workers cease 
                        receiving such benefits;
                            ``(ii) the percentage of such 
                        workers who are employed in each of the 
                        third and fourth calendar quarters 
                        following the calendar quarter in which 
                        the workers cease receiving such 
                        benefits; and
                            ``(iii) the earnings of such 
                        workers in each of the third and fourth 
                        calendar quarters following the 
                        calendar quarter in which the workers 
                        cease receiving such benefits.
                    ``(B) Additional indicators.--The Secretary 
                and a cooperating State or cooperating State 
                agency may agree upon additional indicators of 
                performance for the trade adjustment assistance 
                program under this chapter, as appropriate.
            ``(3) Standards with respect to reliability of 
        data.--In preparing the quarterly report required by 
        paragraph (1), each cooperating State or cooperating 
        State agency shall establish procedures that are 
        consistent with guidelines to be issued by the 
        Secretary to ensure that the data reported are valid 
        and reliable.''.

SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.

    Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as 
amended, is further amended by adding at the end the following:
    ``(k) Verification of Eligibility for Program Benefits.--
            ``(1) In general.--An agreement under this 
        subchapter shall provide that the State shall 
        periodically redetermine that a worker receiving 
        benefits under this subchapter who is not a citizen or 
        national of the United States remains in a satisfactory 
        immigration status. Once satisfactory immigration 
        status has been initially verified through the 
        immigration status verification system described in 
        section 1137(d) of the Social Security Act (42 U.S.C. 
        1320b-7(d)) for purposes of establishing a worker's 
        eligibility for unemployment compensation, the State 
        shall reverify the worker's immigration status if the 
        documentation provided during initial verification will 
        expire during the period in which that worker is 
        potentially eligible to receive benefits under this 
        subchapter. The State shall conduct such 
        redetermination in a timely manner, utilizing the 
        immigration status verification system described in 
        section 1137(d) of the Social Security Act (42 U.S.C. 
        1320b-7(d)).
            ``(2) Procedures.--The Secretary shall establish 
        procedures to ensure the uniform application by the 
        States of the requirements of this subsection.''.

SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.

    (a) In General.--Subchapter C of chapter 2 of title II of 
the Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is 
further amended by adding at the end the following:

``SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; 
                    INFORMATION TO WORKERS.

    ``(a) In General.--Not later than 180 days after the date 
of the enactment of this section, the Secretary shall implement 
a system to collect and report the data described in subsection 
(b), as well as any other information that the Secretary 
considers appropriate to effectively carry out this chapter.
    ``(b) Data To Be Included.--The system required under 
subsection (a) shall include collection of and reporting on the 
following data for each fiscal year:
            ``(1) Data on petitions filed, certified, and 
        denied.--
                    ``(A) The number of petitions filed, 
                certified, and denied under this chapter.
                    ``(B) The number of workers covered by 
                petitions filed, certified, and denied.
                    ``(C) The number of petitions, classified 
                by--
                            ``(i) the basis for certification, 
                        including increased imports, shifts in 
                        production, and other bases of 
                        eligibility; and
                            ``(ii) congressional district of 
                        the United States.
                    ``(D) The average time for processing such 
                petitions.
            ``(2) Data on benefits received.--
                    ``(A) The number of workers receiving 
                benefits under this chapter.
                    ``(B) The number of workers receiving each 
                type of benefit, including training, trade 
                readjustment allowances, employment and case 
                management services, and relocation and job 
                search allowances, and, to the extent feasible, 
                credits for health insurance costs under 
                section 35 of the Internal Revenue Code of 
                1986.
                    ``(C) The average time during which such 
                workers receive each such type of benefit.
            ``(3) Data on training.--
                    ``(A) The number of workers enrolled in 
                training approved under section 236, classified 
                by major types of training, including classroom 
                training, training through distance learning, 
                on-the-job training, and customized training.
                    ``(B) The number of workers enrolled in 
                full-time training and part-time training.
                    ``(C) The average duration of training.
                    ``(D) The number of training waivers 
                granted under section 231(c), classified by 
                type of waiver.
                    ``(E) The number of workers who complete 
                training and the duration of such training.
                    ``(F) The number of workers who do not 
                complete training.
            ``(4) Data on outcomes.--
                    ``(A) A summary of the quarterly reports 
                required under section 239(j).
                    ``(B) The sectors in which workers are 
                employed after receiving benefits under this 
                chapter.
            ``(5) Data on rapid response activities.--Whether 
        rapid response activities were provided with respect to 
        each petition filed under section 221.
    ``(c) Classification of Data.--To the extent possible, in 
collecting and reporting the data described in subsection (b), 
the Secretary shall classify the data by industry, State, and 
national totals.
    ``(d) Report.--Not later than December 15 of each year, the 
Secretary shall submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives a report that includes--
            ``(1) a summary of the information collected under 
        this section for the preceding fiscal year;
            ``(2) information on the distribution of funds to 
        each State pursuant to section 236(a)(2); and
            ``(3) any recommendations of the Secretary with 
        respect to changes in eligibility requirements, 
        benefits, or training funding under this chapter based 
        on the data collected under this section.
    ``(e) Availability of Data.--
            ``(1) In general.--The Secretary shall make 
        available to the public, by publishing on the website 
        of the Department of Labor and by other means, as 
        appropriate--
                    ``(A) the report required under subsection 
                (d);
                    ``(B) the data collected under this 
                section, in a searchable format; and
                    ``(C) a list of cooperating States and 
                cooperating State agencies that failed to 
                submit the data required by this section to the 
                Secretary in a timely manner.
            ``(2) Updates.--The Secretary shall update the data 
        under paragraph (1) on a quarterly basis.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 249A the following:

``Sec. 249B. Collection and publication of data and reports; information 
          to workers.''.

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

SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.

    Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 
2315(a)(1)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``may waive'' and inserting 
                ``shall waive''; and
                    (B) by striking ``, in accordance with 
                guidelines prescribed by the Secretary,''; and
            (2) in subparagraph (B), by striking ``would be 
        contrary to equity and good conscience'' and inserting 
        ``would cause a financial hardship for the individual 
        (or the individual's household, if applicable) when 
        taking into consideration the income and resources 
        reasonably available to the individual (or household) 
        and other ordinary living expenses of the individual 
        (or household)''.

SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT 
                    ASSISTANCE.

    (a) In General.--Chapter 5 of title II of the Trade Act of 
1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end 
the following:

``SEC. 288. SENSE OF CONGRESS.

    ``It is the sense of Congress that the Secretaries of 
Labor, Commerce, and Agriculture should apply the provisions of 
chapter 2 (relating to adjustment assistance for workers), 
chapter 3 (relating to adjustment assistance for firms), 
chapter 4 (relating to adjustment assistance for communities), 
and chapter 6 (relating to adjustment assistance for farmers), 
respectively, with the utmost regard for the interests of 
workers, firms, communities, and farmers petitioning for 
benefits under such chapters.''.
    (b) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 287 the following:

``Sec. 288. Sense of Congress.''.

SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.

    Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is 
amended--
            (1) by striking ``The Secretary shall'' and 
        inserting the following:
    ``(a) In General.--The Secretary shall''; and
            (2) by adding at the end the following:
    ``(b) Consultations.--Not later than 90 days before issuing 
a regulation under subsection (a), the Secretary shall consult 
with the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives with respect 
to the regulation.''.

SEC. 1858. TECHNICAL CORRECTIONS.

    (a) Determinations by Secretary of Labor.--Section 223(c) 
of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by 
striking ``his determination'' and inserting ``a 
determination''.
    (b) Qualifying Requirements for Workers.--Section 231(a) of 
the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``his application'' and 
                inserting ``the worker's application''; and
                    (B) in subparagraph (A), by striking ``he 
                is covered'' and inserting ``the worker is 
                covered'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking the 
                period and inserting a comma; and
                    (B) in subparagraph (D), by striking ``5 
                U.S.C. 8521(a)(1)'' and inserting ``section 
                8521(a)(1) of title 5, United States Code''; 
                and
            (3) in paragraph (3)--
                    (A) by striking ``he'' each place it 
                appears and inserting ``the worker''; and
                    (B) in subparagraph (C), by striking 
                ``him'' and inserting ``the worker''.
    (c) Subpoena Power.--Section 249 of the Trade Act of 1974 
(19 U.S.C. 2321) is amended--
            (1) in the section heading, by striking ``SUBPENA'' 
        and inserting ``SUBPOENA'';
            (2) by striking ``subpena'' and inserting 
        ``subpoena'' each place it appears; and
            (3) in subsection (a), by striking ``him'' and 
        inserting ``the Secretary''.
    (d) Clerical Amendment.--The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
249 and inserting the following:

``Sec. 249. Subpoena power.''.

             PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.

    (a) In General.--Section 251 of the Trade Act of 1974 (19 
U.S.C. 2341) is amended by inserting ``or service sector firm'' 
after ``agricultural firm'' each place it appears.
    (b) Definition of Service Sector Firm.--Section 261 of the 
Trade Act of 1974 (19 U.S.C. 2351) is amended--
            (1) by striking ``chapter,'' and inserting 
        ``chapter:'';
            (2) by striking ``the term `firm' '' and inserting 
        the following:
            ``(1) Firm.--The term `firm' ''; and
            (3) by adding at the end the following:
            ``(2) Service sector firm.--The term `service 
        sector firm' means a firm engaged in the business of 
        supplying services.''.
    (c) Conforming Amendments.--
            (1) Section 251(c)(1)(C) of the Trade Act of 1974 
        (19 U.S.C. 2341(c)(1)(C)) is amended--
                    (A) by inserting ``or services'' after 
                ``articles'' the first place it appears; and
                    (B) by inserting ``or services which are 
                supplied'' after ``produced''.
            (2) Section 251(c)(2)(B)(ii) of such Act is amended 
        to read as follows:
            ``(ii) Any firm that engages in exploration or 
        drilling for oil or natural gas, or otherwise produces 
        oil or natural gas, shall be considered to be producing 
        articles directly competitive with imports of oil and 
        with imports of natural gas.''.

SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.

    Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 
2341(c)(1)(B)) is amended to read as follows:
            ``(B) that--
                    ``(i) sales or production, or both, of the 
                firm have decreased absolutely,
                    ``(ii) sales or production, or both, of an 
                article or service that accounted for not less 
                than 25 percent of the total sales or 
                production of the firm during the 12-month 
                period preceding the most recent 12-month 
                period for which data are available have 
                decreased absolutely,
                    ``(iii) sales or production, or both, of 
                the firm during the most recent 12-month period 
                for which data are available have decreased 
                compared to--
                            ``(I) the average annual sales or 
                        production for the firm during the 24-
                        month period preceding that 12-month 
                        period, or
                            ``(II) the average annual sales or 
                        production for the firm during the 36-
                        month period preceding that 12-month 
                        period, and
                    ``(iv) sales or production, or both, of an 
                article or service that accounted for not less 
                than 25 percent of the total sales or 
                production of the firm during the most recent 
                12-month period for which data are available 
                have decreased compared to--
                            ``(I) the average annual sales or 
                        production for the article or service 
                        during the 24-month period preceding 
                        that 12-month period, or
                            ``(II) the average annual sales or 
                        production for the article or service 
                        during the 36-month period preceding 
                        that 12-month period, and''.

SEC. 1863. BASIS FOR DETERMINATIONS.

    Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as 
amended, is further amended by adding at the end the following:
    ``(e) Basis for Secretary's Determinations.--For purposes 
of subsection (c)(1)(C), the Secretary may determine that there 
are increased imports of like or directly competitive articles 
or services, if customers accounting for a significant 
percentage of the decrease in the sales or production of the 
firm certify to the Secretary that such customers have 
increased their imports of such articles or services from a 
foreign country, either absolutely or relative to their 
acquisition of such articles or services from suppliers located 
in the United States.
    ``(f) Notification to Firms of Availability of Benefits.--
Upon receiving notice from the Secretary of Labor under section 
225 of the identity of a firm that is covered by a 
certification issued under section 223, the Secretary of 
Commerce shall notify the firm of the availability of 
adjustment assistance under this chapter.''.

SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF 
                    APPROPRIATIONS.

    (a) In General.--Chapter 3 of title II of the Trade Act of 
1974 (19 U.S.C. 2341 et seq.) is amended--
            (1) by striking sections 254, 255, 256, and 257;
            (2) by redesignating sections 258, 259, 260, 261, 
        262, 264, and 265, as sections 256, 257, 258, 259, 260, 
        261, and 262, respectively; and
            (3) by inserting after section 253 the following:

``SEC. 254. OVERSIGHT AND ADMINISTRATION.

    ``(a) In General.--The Secretary shall, to such extent and 
in such amounts as are provided in appropriations Acts, provide 
grants to intermediary organizations (referred to in section 
253(b)(1)) throughout the United States pursuant to agreements 
with such intermediary organizations. Each such agreement shall 
require the intermediary organization to provide benefits to 
firms certified under section 251. The Secretary shall, to the 
maximum extent practicable, provide by October 1, 2010, that 
contracts entered into with intermediary organizations be for a 
12-month period and that all such contracts have the same 
beginning date and the same ending date.
    ``(b) Distribution of Funds.--
            ``(1) In general.--Not later than 90 days after the 
        date of the enactment of this subsection, the Secretary 
        shall develop a methodology for the distribution of 
        funds among the intermediary organizations described in 
        subsection (a).
            ``(2) Prompt initial distribution.--The methodology 
        described in paragraph (1) shall ensure the prompt 
        initial distribution of funds and establish additional 
        criteria governing the apportionment and distribution 
        of the remainder of such funds among the intermediary 
        organizations.
            ``(3) Criteria.--The methodology described in 
        paragraph (1) shall include criteria based on the data 
        in the annual report on the trade adjustment assistance 
        for firms program described in section 1866 of the 
        Trade and Globalization Adjustment Assistance Act of 
        2009.
    ``(c) Requirements for Contracts.--An agreement with an 
intermediary organization described in subsection (a) shall 
require the intermediary organization to contract for the 
supply of services to carry out grants under this chapter in 
accordance with terms and conditions that are consistent with 
guidelines established by the Secretary.
    ``(d) Consultations.--
            ``(1) Consultations regarding methodology.--The 
        Secretary shall consult with the Committee on Finance 
        of the Senate and the Committee on Ways and Means of 
        the House of Representatives--
                    ``(A) not less than 30 days before 
                finalizing the methodology described in 
                subsection (b); and
                    ``(B) not less than 60 days before adopting 
                any changes to such methodology.
            ``(2) Consultations regarding guidelines.--The 
        Secretary shall consult with the Committee on Finance 
        of the Senate and the Committee on Ways and Means of 
        the House of Representatives not less than 60 days 
        before finalizing the guidelines described in 
        subsection (c) or adopting any subsequent changes to 
        such guidelines.

``SEC. 255. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
to the Secretary $50,000,000 for each of the fiscal years 2009 
through 2010, and $12,501,000 for the period beginning October 
1, 2010, and ending December 31, 2010, to carry out the 
provisions of this chapter. Amounts appropriated pursuant to 
this subsection shall--
            ``(1) be available to provide adjustment assistance 
        to firms that file a petition for such assistance 
        pursuant to this chapter on or before December 31, 
        2010; and
            ``(2) otherwise remain available until expended.
    ``(b) Personnel.--Of the amounts appropriated pursuant to 
this section for each fiscal year, $350,000 shall be available 
for full-time positions in the Department of Commerce to 
administer the provisions of this chapter. Of such funds the 
Secretary shall make available to the Economic Development 
Administration such sums as may be necessary to establish the 
position of Director of Adjustment Assistance for Firms and 
such other full-time positions as may be appropriate to 
administer the provisions of this chapter.''.
    (b) Residual Authority.--The Secretary of Commerce shall 
have the authority to modify, terminate, resolve, liquidate, or 
take any other action with respect to a loan, guarantee, 
contract, or any other financial assistance that was extended 
under section 254, 255, 256, or 257 of the Trade Act of 1974 
(19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day 
before the effective date set forth in section 1891.
    (c) Conforming Amendments.--
            (1) Section 256 of the Trade Act of 1974, as 
        redesignated by subsection (a) of this section, is 
        amended by striking subsection (d).
            (2) Section 258 of the Trade Act of 1974, as 
        redesignated by subsection (a) of this section, is 
        amended--
                    (A) in the first sentence, by striking 
                ``and financial''; and
                    (B) in the last sentence--
                            (i) by striking ``sections 253 and 
                        254'' and inserting ``section 253''; 
                        and
                            (ii) by striking ``title 28 of the 
                        United States Code'' and inserting 
                        ``title 28, United States Code''.
    (d) Clerical Amendments.--The table of contents of the 
Trade Act of 1974 is amended by striking the items relating to 
sections 254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 
265, and inserting the following:

``Sec. 254. Oversight and administration.
``Sec. 255. Authorization of appropriations.
``Sec. 256. Protective provisions.
``Sec. 257. Penalties.
``Sec. 258. Civil actions.
``Sec. 259. Definitions.
``Sec. 260. Regulations.
``Sec. 261. Study by Secretary of Commerce when International Trade 
          Commission begins investigation; action where there is 
          affirmative finding.
``Sec. 262. Assistance to industries.''.

    (e) Effective Date.--This section and the amendments made 
by this section shall take effect upon the expiration of the 
90-day period beginning on the date of the enactment of this 
Act, except that subsections (b) and (d) of section 254 of the 
Trade Act of 1974 (as added by subsection (a) of this section) 
shall take effect on such date of enactment.

SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.

    Section 257 of the Trade Act of 1974, as redesignated by 
section 1864(a), is amended to read as follows:

``SEC. 257. PENALTIES.

    ``Any person who--
            ``(1) makes a false statement of a material fact 
        knowing it to be false, or knowingly fails to disclose 
        a material fact, or willfully overvalues any security, 
        for the purpose of influencing in any way a 
        determination under this chapter, or for the purpose of 
        obtaining money, property, or anything of value under 
        this chapter, or
            ``(2) makes a false statement of a material fact 
        knowing it to be false, or knowingly fails to disclose 
        a material fact, when providing information to the 
        Secretary during an investigation of a petition under 
        this chapter,
shall be imprisoned for not more than 2 years, or fined under 
title 18, United States Code, or both.''.

SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

    (a) In General.--Not later than December 15, 2009, and each 
year thereafter, the Secretary of Commerce shall prepare a 
report containing data regarding the trade adjustment 
assistance for firms program provided for in chapter 3 of title 
II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the 
preceding fiscal year. The data shall include the following:
            (1) The number of firms that inquired about the 
        program.
            (2) The number of petitions filed under section 
        251.
            (3) The number of petitions certified and denied.
            (4) The average time for processing petitions.
            (5) The number of petitions filed and firms 
        certified for each congressional district of the United 
        States.
            (6) The number of firms that received assistance in 
        preparing their petitions.
            (7) The number of firms that received assistance 
        developing business recovery plans.
            (8) The number of business recovery plans approved 
        and denied by the Secretary of Commerce.
            (9) Sales, employment, and productivity at each 
        firm participating in the program at the time of 
        certification.
            (10) Sales, employment, and productivity at each 
        firm upon completion of the program and each year for 
        the 2-year period following completion.
            (11) The financial assistance received by each firm 
        participating in the program.
            (12) The financial contribution made by each firm 
        participating in the program.
            (13) The types of technical assistance included in 
        the business recovery plans of firms participating in 
        the program.
            (14) The number of firms leaving the program before 
        completing the project or projects in their business 
        recovery plans and the reason the project was not 
        completed.
    (b) Classification of Data.--To the extent possible, in 
collecting and reporting the data described in subsection (a), 
the Secretary shall classify the data by intermediary 
organization, State, and national totals.
    (c) Report to Congress; Publication.--The Secretary of 
Commerce shall--
            (1) submit the report described in subsection (a) 
        to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of 
        Representatives; and
            (2) publish the report in the Federal Register and 
        on the website of the Department of Commerce.
    (d) Protection of Confidential Information.--The Secretary 
of Commerce may not release information described in subsection 
(a) that the Secretary considers to be confidential business 
information unless the person submitting the confidential 
business information had notice, at the time of submission, 
that such information would be released by the Secretary, or 
such person subsequently consents to the release of the 
information. Nothing in this subsection shall be construed to 
prohibit the Secretary from providing such confidential 
business information to a court in camera or to another party 
under a protective order issued by a court.

SEC. 1867. TECHNICAL CORRECTIONS.

    (a) In General.--Section 251 of the Trade Act of 1974 (19 
U.S.C. 2341), as amended, is further amended--
            (1) in subsection (a), by striking ``he has'' and 
        inserting ``the Secretary has''; and
            (2) in subsection (d), by striking ``60 days'' and 
        inserting ``40 days''.
    (b) Technical Assistance.--Section 253(a)(3) of the Trade 
Act of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of 
a certified firm'' and inserting ``to a certified firm''.

         PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

SEC. 1871. PURPOSE.

    The purpose of the amendments made by this part is to 
assist communities impacted by trade with economic adjustment 
through the coordination of Federal, State, and local 
resources, the creation of community-based development 
strategies, and the development and provision of programs that 
meet the training needs of workers covered by certifications 
under section 223.

SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

    (a) In General.--Chapter 4 of title II of the Trade Act of 
1974 (19 U.S.C. 2371 et seq.) is amended to read as follows:

        ``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

      ``Subchapter A--Trade Adjustment Assistance for Communities

``SEC. 271. DEFINITIONS.

    ``In this subchapter:
            ``(1) Agricultural commodity producer.--The term 
        `agricultural commodity producer' has the meaning given 
        that term in section 291.
            ``(2) Community.--The term `community' means a 
        city, county, or other political subdivision of a State 
        or a consortium of political subdivisions of a State.
            ``(3) Community impacted by trade.--The term 
        `community impacted by trade' means a community 
        described in section 273(b)(2).
            ``(4) Eligible community.--The term `eligible 
        community' means a community that the Secretary has 
        determined under section 273(b)(1) is eligible to apply 
        for assistance under this subchapter.
            ``(5) Secretary.--The term `Secretary' means the 
        Secretary of Commerce.

``SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR 
                    COMMUNITIES PROGRAM.

    ``Not later than August 1, 2009, the Secretary shall 
establish a trade adjustment assistance for communities program 
at the Department of Commerce under which the Secretary shall--
            ``(1) provide technical assistance under section 
        274 to communities impacted by trade to facilitate the 
        economic adjustment of those communities; and
            ``(2) award grants to communities impacted by trade 
        to carry out strategic plans developed under section 
        276.

``SEC. 273. ELIGIBILITY; NOTIFICATION.

    ``(a) Petition.--
            ``(1) In general.--A community may submit a 
        petition to the Secretary for an affirmative 
        determination under subsection (b)(1) that the 
        community is eligible to apply for assistance under 
        this subchapter if--
                    ``(A) on or after August 1, 2009, one or 
                more certifications described in subsection 
                (b)(3) are made with respect to the community; 
                and
                    ``(B) the community submits the petition 
                not later than 180 days after the date of the 
                most recent certification.
            ``(2) Special rule with respect to certain 
        communities.--In the case of a community with respect 
        to which one or more certifications described in 
        subsection (b)(3) were made on or after January 1, 
        2007, and before August 1, 2009, the community may 
        submit not later than February 1, 2010, a petition to 
        the Secretary for an affirmative determination under 
        subsection (b)(1).
    ``(b) Affirmative Determination.--
            ``(1) In general.--The Secretary shall make an 
        affirmative determination that a community is eligible 
        to apply for assistance under this subchapter if the 
        Secretary determines that the community is a community 
        impacted by trade.
            ``(2) Community impacted by trade.--A community is 
        a community impacted by trade if--
                    ``(A) one or more certifications described 
                in paragraph (3) are made with respect to the 
                community; and
                    ``(B) the Secretary determines that the 
                community is significantly affected by the 
                threat to, or the loss of, jobs associated with 
                any such certification.
            ``(3) Certification described.--A certification 
        described in this paragraph is a certification--
                    ``(A) by the Secretary of Labor that a 
                group of workers in the community is eligible 
                to apply for assistance under section 223;
                    ``(B) by the Secretary of Commerce that a 
                firm located in the community is eligible to 
                apply for adjustment assistance under section 
                251; or
                    ``(C) by the Secretary of Agriculture that 
                a group of agricultural commodity producers in 
                the community is eligible to apply for 
                adjustment assistance under section 293.
    ``(c) Notifications.--
            ``(1) Notification to the governor.--The Governor 
        of a State shall be notified promptly--
                    ``(A) by the Secretary of Labor, upon 
                making a determination that a group of workers 
                in the State is eligible for assistance under 
                section 223;
                    ``(B) by the Secretary of Commerce, upon 
                making a determination that a firm in the State 
                is eligible for assistance under section 251; 
                and
                    ``(C) by the Secretary of Agriculture, upon 
                making a determination that a group of 
                agricultural commodity producers in the State 
                is eligible for assistance under section 293.
            ``(2) Notification to community.--Upon making an 
        affirmative determination under subsection (b)(1) that 
        a community is eligible to apply for assistance under 
        this subchapter, the Secretary shall promptly notify 
        the community and the Governor of the State in which 
        the community is located--
                    ``(A) of the affirmative determination;
                    ``(B) of the applicable provisions of this 
                subchapter; and
                    ``(C) of the means for obtaining assistance 
                under this subchapter and other appropriate 
                economic assistance that may be available to 
                the community.

``SEC. 274. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide 
comprehensive technical assistance to an eligible community to 
assist the community to--
            ``(1) diversify and strengthen the economy in the 
        community;
            ``(2) identify significant impediments to economic 
        development that result from the impact of trade on the 
        community; and
            ``(3) develop a strategic plan under section 276 to 
        address economic adjustment and workforce dislocation 
        in the community, including unemployment among 
        agricultural commodity producers.
    ``(b) Coordination of Federal Response.--The Secretary 
shall coordinate the Federal response to an eligible community 
by--
            ``(1) identifying Federal, State, and local 
        resources that are available to assist the community in 
        responding to economic distress; and
            ``(2) assisting the community in accessing 
        available Federal assistance and ensuring that such 
        assistance is provided in a targeted, integrated 
        manner.
    ``(c) Interagency Community Assistance Working Group.--
            ``(1) In general.--The Secretary shall establish an 
        interagency Community Assistance Working Group, to be 
        chaired by the Secretary or the Secretary's designee, 
        which shall assist the Secretary with the coordination 
        of the Federal response pursuant to subsection (b).
            ``(2) Membership.--The Working Group shall consist 
        of representatives of any Federal department or agency 
        with responsibility for providing economic adjustment 
        assistance, including the Department of Agriculture, 
        the Department of Defense, the Department of Education, 
        the Department of Labor, the Department of Housing and 
        Urban Development, the Department of Health and Human 
        Services, the Small Business Administration, the 
        Department of the Treasury, and any other Federal, 
        State, or regional public department or agency the 
        Secretary determines to be appropriate.

``SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES.

    ``(a) In General.--The Secretary may award a grant under 
this section to an eligible community to assist the community 
in carrying out any project or program that is included in a 
strategic plan developed by the community under section 276.
    ``(b) Application.--
            ``(1) In general.--An eligible community seeking to 
        receive a grant under this section shall submit a grant 
        application to the Secretary that contains--
                    ``(A) the strategic plan developed by the 
                community under section 276(a)(1)(A) and 
                approved by the Secretary under section 
                276(a)(1)(B); and
                    ``(B) a description of the project or 
                program included in the strategic plan with 
                respect to which the community seeks the grant.
            ``(2) Coordination among grant programs.--If an 
        entity in an eligible community is seeking or plans to 
        seek a Community College and Career Training Grant 
        under section 278 or a Sector Partnership Grant under 
        section 279A while the eligible community is seeking a 
        grant under this section, the eligible community shall 
        include in the grant application a description of how 
        the eligible community will integrate any projects or 
        programs carried out using a grant under this section 
        with any projects or programs that may be carried out 
        using such other grants.
    ``(c) Limitation.--An eligible community may not be awarded 
more than $5,000,000 under this section.
    ``(d) Cost-Sharing.--
            ``(1) Federal share.--The Federal share of a 
        project or program for which a grant is awarded under 
        this section may not exceed 95 percent of the cost of 
        such project or program.
            ``(2) Community share.--The Secretary shall 
        require, as a condition of awarding a grant to an 
        eligible community under this section, that the 
        eligible community contribute not less than an amount 
        equal to 5 percent of the amount of the grant toward 
        the cost of the project or program for which the grant 
        is awarded.
    ``(e) Grants to Small- and Medium-Sized Communities.--The 
Secretary shall give priority to grant applications submitted 
under this section by eligible communities that are small- and 
medium-sized communities.
    ``(f) Annual Report.--Not later than December 15 in each of 
the calendar years 2009 through 2011, the Secretary shall 
submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives a 
report--
            ``(1) describing each grant awarded under this 
        section during the preceding fiscal year; and
            ``(2) assessing the impact on the eligible 
        community of each such grant awarded in a fiscal year 
        before the fiscal year referred to in paragraph (1).

``SEC. 276. STRATEGIC PLANS.

    ``(a) In General.--
            ``(1) Development.--An eligible community that 
        intends to apply for a grant under section 275 shall--
                    ``(A) develop a strategic plan for the 
                community's economic adjustment to the impact 
                of trade; and
                    ``(B) submit the plan to the Secretary for 
                evaluation and approval.
            ``(2) Involvement of private and public entities.--
                    ``(A) In general.--To the extent 
                practicable, an eligible community shall 
                consult with entities described in subparagraph 
                (B) in developing a strategic plan under 
                paragraph (1).
                    ``(B) Entities described.--Entities 
                described in this subparagraph are public and 
                private entities within the eligible community, 
                including--
                            ``(i) local, county, or State 
                        government agencies serving the 
                        community;
                            ``(ii) firms, including small- and 
                        medium-sized firms, within the 
                        community;
                            ``(iii) local workforce investment 
                        boards established under section 117 of 
                        the Workforce Investment Act of 1998 
                        (29 U.S.C. 2832);
                            ``(iv) labor organizations, 
                        including State labor federations and 
                        labor-management initiatives, 
                        representing workers in the community; 
                        and
                            ``(v) educational institutions, 
                        local educational agencies, or other 
                        training providers serving the 
                        community.
    ``(b) Contents.--The strategic plan shall, at a minimum, 
contain the following:
            ``(1) A description and analysis of the capacity of 
        the eligible community to achieve economic adjustment 
        to the impact of trade.
            ``(2) An analysis of the economic development 
        challenges and opportunities facing the community as 
        well as the strengths and weaknesses of the economy of 
        the community.
            ``(3) An assessment of the commitment of the 
        eligible community to the strategic plan over the long 
        term and the participation and input of members of the 
        community affected by economic dislocation.
            ``(4) A description of the role and the 
        participation of the entities described in subsection 
        (a)(2)(B) in developing the strategic plan.
            ``(5) A description of the projects to be 
        undertaken by the eligible community under the 
        strategic plan.
            ``(6) A description of how the strategic plan and 
        the projects to be undertaken by the eligible community 
        will facilitate the community's economic adjustment.
            ``(7) A description of the educational and training 
        programs available to workers in the eligible community 
        and the future employment needs of the community.
            ``(8) An assessment of the cost of implementing the 
        strategic plan, the timing of funding required by the 
        eligible community to implement the strategic plan, and 
        the method of financing to be used to implement the 
        strategic plan.
            ``(9) A strategy for continuing the economic 
        adjustment of the eligible community after the 
        completion of the projects described in paragraph (5).
    ``(c) Grants To Develop Strategic Plans.--
            ``(1) In general.--The Secretary, upon receipt of 
        an application from an eligible community, may award a 
        grant to the community to assist the community in 
        developing a strategic plan under subsection (a)(1). A 
        grant awarded under this paragraph shall not exceed 75 
        percent of the cost of developing the strategic plan.
            ``(2) Funds to be used.--Of the funds appropriated 
        pursuant to section 277(c), the Secretary may make 
        available not more than $25,000,000 for each of the 
        fiscal years 2009 and 2010, and $6,250,000 for the 
        period beginning October 1, 2010, and ending December 
        31, 2010, to provide grants to eligible communities 
        under paragraph (1).

``SEC. 277. GENERAL PROVISIONS.

    ``(a) Regulations.--
            ``(1) In general.--The Secretary shall prescribe 
        such regulations as are necessary to carry out the 
        provisions of this subchapter, including--
                    ``(A) establishing specific guidelines for 
                the submission and evaluation of strategic 
                plans under section 276;
                    ``(B) establishing specific guidelines for 
                the submission and evaluation of grant 
                applications under section 275; and
                    ``(C) administering the grant programs 
                established under sections 275 and 276.
            ``(2) Consultations.--The Secretary shall consult 
        with the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of 
        Representatives not less than 90 days prior to 
        promulgating any final rule or regulation pursuant to 
        paragraph (1).
    ``(b) Personnel.--The Secretary shall designate such staff 
as may be necessary to carry out the responsibilities described 
in this subchapter.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to the Secretary $150,000,000 for each of 
        the fiscal years 2009 and 2010, and $37,500,000 for the 
        period beginning October 1, 2010, and ending December 
        31, 2010, to carry out this subchapter.
            ``(2) Availability.--Amounts appropriated pursuant 
        to this subchapter--
                    ``(A) shall be available to provide 
                adjustment assistance to communities that have 
                been approved for assistance pursuant to this 
                chapter on or before December 31, 2010; and
                    ``(B) shall otherwise remain available 
                until expended.
            ``(3) Supplement not supplant.--Funds appropriated 
        pursuant to this subchapter shall be used to supplement 
        and not supplant other Federal, State, and local public 
        funds expended to provide economic development 
        assistance for communities.

  ``Subchapter B--Community College and Career Training Grant Program

``SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM.

    ``(a) Grants Authorized.--
            ``(1) In general.--Beginning August 1, 2009, the 
        Secretary may award Community College and Career 
        Training Grants to eligible institutions for the 
        purpose of developing, offering, or improving 
        educational or career training programs for workers 
        eligible for training under section 236.
            ``(2) Limitations.--An eligible institution may not 
        be awarded--
                    ``(A) more than one grant under this 
                section; or
                    ``(B) a grant under this section in excess 
                of $1,000,000.
    ``(b) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible 
        institution' means an institution of higher education 
        (as defined in section 102 of the Higher Education Act 
        of 1965 (20 U.S.C. 1002)), but only with respect to a 
        program offered by the institution that can be 
        completed in not more than 2 years.
            ``(2) Secretary.--The term `Secretary' means the 
        Secretary of Labor.
    ``(c) Grant Proposals.--
            ``(1) In general.--An eligible institution seeking 
        to receive a grant under this section shall submit a 
        grant proposal to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require.
            ``(2) Guidelines.--Not later than June 1, 2009, the 
        Secretary shall--
                    ``(A) promulgate guidelines for the 
                submission of grant proposals under this 
                section; and
                    ``(B) publish and maintain such guidelines 
                on the website of the Department of Labor.
            ``(3) Assistance.--The Secretary shall offer 
        assistance in preparing a grant proposal to any 
        eligible institution that requests such assistance.
            ``(4) General requirements for grant proposals.--
                    ``(A) In general.--A grant proposal 
                submitted to the Secretary under this section 
                shall include a detailed description of--
                            ``(i) the specific project for 
                        which the grant proposal is submitted, 
                        including the manner in which the grant 
                        will be used to develop, offer, or 
                        improve an educational or career 
                        training program that is suited to 
                        workers eligible for training under 
                        section 236;
                            ``(ii) the extent to which the 
                        project for which the grant proposal is 
                        submitted will meet the educational or 
                        career training needs of workers in the 
                        community served by the eligible 
                        institution who are eligible for 
                        training under section 236;
                            ``(iii) the extent to which the 
                        project for which the grant proposal is 
                        submitted fits within any overall 
                        strategic plan developed by an eligible 
                        community under section 276;
                            ``(iv) the extent to which the 
                        project for which the grant proposal is 
                        submitted relates to any project funded 
                        by a Sector Partnership Grant awarded 
                        under section 279A; and
                            ``(v) any previous experience of 
                        the eligible institution in providing 
                        educational or career training programs 
                        to workers eligible for training under 
                        section 236.
                    ``(B) Absence of experience.--The absence 
                of any previous experience in providing 
                educational or career training programs 
                described in subparagraph (A)(v) shall not 
                automatically disqualify an eligible 
                institution from receiving a grant under this 
                section.
            ``(5) Community outreach required.--In order to be 
        considered by the Secretary, a grant proposal submitted 
        by an eligible institution under this section shall--
                    ``(A) demonstrate that the eligible 
                institution--
                            ``(i) reached out to employers, and 
                        other entities described in section 
                        276(a)(2)(B) to identify--
                                    ``(I) any shortcomings in 
                                existing educational and career 
                                training opportunities 
                                available to workers in the 
                                community; and
                                    ``(II) any future 
                                employment opportunities within 
                                the community and the 
                                educational and career training 
                                skills required for workers to 
                                meet the future employment 
                                demand;
                            ``(ii) reached out to other 
                        similarly situated institutions in an 
                        effort to benefit from any best 
                        practices that may be shared with 
                        respect to providing educational or 
                        career training programs to workers 
                        eligible for training under section 
                        236; and
                            ``(iii) reached out to any eligible 
                        partnership in the community that has 
                        sought or received a Sector Partnership 
                        Grant under section 279A to enhance the 
                        effectiveness of each grant and avoid 
                        duplication of efforts; and
                    ``(B) include a detailed description of--
                            ``(i) the extent and outcome of the 
                        outreach conducted under subparagraph 
                        (A);
                            ``(ii) the extent to which the 
                        project for which the grant proposal is 
                        submitted will contribute to meeting 
                        any shortcomings identified under 
                        subparagraph (A)(i)(I) or any 
                        educational or career training needs 
                        identified under subparagraph 
                        (A)(i)(II); and
                            ``(iii) the extent to which 
                        employers, including small- and medium-
                        sized firms within the community, have 
                        demonstrated a commitment to employing 
                        workers who would benefit from the 
                        project for which the grant proposal is 
                        submitted.
    ``(d) Criteria for Award of Grants.--
            ``(1) In general.--Subject to the appropriation of 
        funds, the Secretary shall award a grant under this 
        section based on--
                    ``(A) a determination of the merits of the 
                grant proposal submitted by the eligible 
                institution to develop, offer, or improve 
                educational or career training programs to be 
                made available to workers eligible for training 
                under section 236;
                    ``(B) an evaluation of the likely 
                employment opportunities available to workers 
                who complete an educational or career training 
                program that the eligible institution proposes 
                to develop, offer, or improve; and
                    ``(C) an evaluation of prior demand for 
                training programs by workers eligible for 
                training under section 236 in the community 
                served by the eligible institution, as well as 
                the availability and capacity of existing 
                training programs to meet future demand for 
                training programs.
            ``(2) Priority for certain communities.--In 
        awarding grants under this section, the Secretary shall 
        give priority to an eligible institution that serves a 
        community that the Secretary of Commerce has determined 
        under section 273 is eligible to apply for assistance 
        under subchapter A within the 5-year period preceding 
        the date on which the grant proposal is submitted to 
        the Secretary under this section.
            ``(3) Matching requirements.--A grant awarded under 
        this section may not be used to satisfy any private 
        matching requirement under any other provision of law.
    ``(e) Annual Report.--Not later than December 15 in each of 
the calendar years 2009 through 2011, the Secretary shall 
submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives a 
report--
            ``(1) describing each grant awarded under this 
        section during the preceding fiscal year; and
            ``(2) assessing the impact of each award of a grant 
        under this section in a fiscal year preceding the 
        fiscal year referred to in paragraph (1) on workers 
        receiving training under section 236.

``SEC. 279. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary of Labor 
$40,000,000 for each of the fiscal years 2009 and 2010, and 
$10,000,000 for the period beginning October 1, 2010, and 
ending December 31, 2010, to fund the Community College and 
Career Training Grant Program. Funds appropriated pursuant to 
this section shall remain available until expended.
    ``(b) Supplement Not Supplant.--Funds appropriated pursuant 
to this section shall be used to supplement and not supplant 
other Federal, State, and local public funds expended to 
support community college and career training programs.

   ``Subchapter C--Industry or Sector Partnership Grant Program for 
                     Communities Impacted by Trade

``SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR 
                    COMMUNITIES IMPACTED BY TRADE.

    ``(a) Purpose.--The purpose of this subchapter is to 
facilitate efforts by industry or sector partnerships to 
strengthen and revitalize industries and create employment 
opportunities for workers in communities impacted by trade.
    ``(b) Definitions.--In this subchapter:
            ``(1) Community impacted by trade.--The term 
        `community impacted by trade' has the meaning given 
        that term in section 271.
            ``(2) Dislocated worker.--The term `dislocated 
        worker' means a worker who has been totally or 
        partially separated, or is threatened with total or 
        partial separation, from employment in an industry or 
        sector in a community impacted by trade.
            ``(3) Eligible partnership.--The term `eligible 
        partnership' means a voluntary partnership composed of 
        public and private persons, firms, or other entities 
        within a community impacted by trade, that shall 
        include representatives of--
                    ``(A) an industry or sector within the 
                community, including an industry association;
                    ``(B) local, county, or State government;
                    ``(C) multiple firms in the industry or 
                sector, including small- and medium-sized 
                firms, within the community;
                    ``(D) local workforce investment boards 
                established under section 117 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2832);
                    ``(E) labor organizations, including State 
                labor federations and labor-management 
                initiatives, representing workers in the 
                community; and
                    ``(F) educational institutions, local 
                educational agencies, or other training 
                providers serving the community.
            ``(4) Lead entity.--The term `lead entity' means--
                    ``(A) an entity designated by the eligible 
                partnership to be responsible for submitting a 
                grant proposal under subsection (e) and serving 
                as the eligible partnership's fiscal agent in 
                expending any Sector Partnership Grant awarded 
                under this section; or
                    ``(B) a State agency designated by the 
                Governor of the State to carry out the 
                responsibilities described in subparagraph (A).
            ``(5) Secretary.--The term `Secretary' means the 
        Secretary of Labor.
            ``(6) Targeted industry or sector.--The term 
        `targeted industry or sector' means the industry or 
        sector represented by an eligible partnership.
    ``(c) Sector Partnership Grants Authorized.--Beginning on 
August 1, 2009, and subject to the appropriation of funds, the 
Secretary shall award Sector Partnership Grants to eligible 
partnerships to assist the eligible partnerships in carrying 
out projects, over periods of not more than 3 years, to 
strengthen and revitalize industries and sectors and create 
employment opportunities for dislocated workers.
    ``(d) Use of Sector Partnership Grants.--An eligible 
partnership may use a Sector Partnership Grant to carry out any 
project that the Secretary determines will further the purpose 
of this subchapter, which may include--
            ``(1) identifying the skill needs of the targeted 
        industry or sector and any gaps in the available supply 
        of skilled workers in the community impacted by trade, 
        and developing strategies for filling the gaps, 
        including by--
                    ``(A) developing systems to better link 
                firms in the targeted industry or sector to 
                available skilled workers;
                    ``(B) helping firms in the targeted 
                industry or sector to obtain access to new 
                sources of qualified job applicants;
                    ``(C) retraining dislocated and incumbent 
                workers; or
                    ``(D) facilitating the training of new 
                skilled workers by aligning the instruction 
                provided by local suppliers of education and 
                training services with the needs of the 
                targeted industry or sector;
            ``(2) analyzing the skills and education levels of 
        dislocated and incumbent workers and developing 
        training to address skill gaps that prevent such 
        workers from obtaining jobs in the targeted industry or 
        sector;
            ``(3) helping firms, especially small- and medium-
        sized firms, in the targeted industry or sector 
        increase their productivity and the productivity of 
        their workers;
            ``(4) helping such firms retain incumbent workers;
            ``(5) developing learning consortia of small- and 
        medium-sized firms in the targeted industry or sector 
        with similar training needs to enable the firms to 
        combine their purchases of training services, and 
        thereby lower their training costs;
            ``(6) providing information and outreach activities 
        to firms in the targeted industry or sector regarding 
        the activities of the eligible partnership and other 
        local service suppliers that could assist the firms in 
        meeting needs for skilled workers;
            ``(7) seeking, applying, and disseminating best 
        practices learned from similarly situated communities 
        impacted by trade in the development and implementation 
        of economic growth and revitalization strategies; and
            ``(8) identifying additional public and private 
        resources to support the activities described in this 
        subsection, which may include the option to apply for a 
        community grant under section 275 or a Community 
        College and Career Training Grant under section 278 
        (subject to meeting any additional requirements of 
        those sections).
    ``(e) Grant Proposals.--
            ``(1) In general.--The lead entity of an eligible 
        partnership seeking to receive a Sector Partnership 
        Grant under this section shall submit a grant proposal 
        to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may 
        require.
            ``(2) General requirements of grant proposals.--A 
        grant proposal submitted under paragraph (1) shall, at 
        a minimum--
                    ``(A) identify the members of the eligible 
                partnership;
                    ``(B) identify the targeted industry or 
                sector for which the eligible partnership 
                intends to carry out projects using the Sector