Jamie Dupree

Text Of The Stimulus Bill

Jamie Dupree

@ February 14, 2009 9:33 AM Permalink | Comments (1) | TrackBacks (0)

While the Congress couldn't deliver it yesterday, the folks at the Library of Congress and Goverment Printing Office worked late to deliver a full version (without handwritten cross outs) of the economic stimulus bill approved by Congress.

Have at it. I will also post in a second blog entry today some ways to view it in chunks in a searchable pdf file and more.

*CONFERENCE REPORT ON H.R. 1, AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 -- (House of Representatives - February 12, 2009)*

[Page: H1307]

---

Mr. OBEY submitted the following conference report and statement on
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:

Conference Report (H. Rept. 111-16)

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

[Page: H1308]

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.

(1) *IN GENERAL*.--For the costs of State administrative expenses
associated with carrying out this section and administering the
supplemental nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the Secretary shall make
available $145,000,000 in fiscal year 2009 and $150,000,000 in fiscal
year 2010, of which $4,500,000 is for necessary expenses of the Food and
Nutrition Service for management and oversight of the program and for
monitoring the integrity and evaluating the effects of the payments made
under this section.

(2) *TIMING FOR FISCAL YEAR 2009*.--Not later than 60 days after the
date of enactment of this Act, the Secretary shall make available to
States amounts for fiscal year 2009 under paragraph (1).

(3) *ALLOCATION OF FUNDS*.--Except as provided for management and
oversight, funds described in paragraph (1) shall be made available as
grants to State agencies for each fiscal year as follows:

(A) 75 percent of the amounts available for each fiscal year shall
be allocated to States based on the share of each State of households
that participate in the supplemental nutrition assistance program as
reported to the Department of Agriculture for the most recent 12-month
period for which data are available, adjusted by the Secretary (as of
the date of enactment) for participation in disaster programs under
section 5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)); and

(B) 25 percent of the amounts available for each fiscal year shall
be allocated to States based on the increase in the number of households
that participate in the supplemental nutrition assistance program as
reported to the Department of Agriculture over the most recent 12-month
period for which data are available, adjusted by the Secretary (as of
the date of enactment) for participation in disaster programs under
section 5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)).

(d) *FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS*.--For the
costs relating to facility improvements and equipment upgrades
associated with the Food Distribution Program on Indian Reservations, as
established under section 4(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)), the Secretary shall make available $5,000,000:
/Provided,/ That administrative cost-sharing requirements are not
applicable to funds provided in accordance with this provision.

(e) *TREATMENT OF JOBLESS WORKERS*.--

(1) *REMAINDER OF FISCAL YEAR 2009 THROUGH FISCAL YEAR
2010*.--Beginning with the first month that begins not less than 25 days
after the date of enactment of this Act and for each subsequent month
through September 30, 2010, eligibility for supplemental nutrition
assistance program benefits shall not be limited under section 6(o)(2)
of the Food and Nutrition Act of 2008 unless an individual does not
comply with the requirements of a program offered by the State agency
that meets the standards of subparagraphs (B) or (C) of that paragraph.

(2) *FISCAL YEAR 2011 AND THEREAFTER*.--Beginning on October 1,
2010, for the purposes of section 6(o) of the Food and Nutrition Act of
2008 (7 U.S.C. 2015(o)), a State agency shall disregard any period
during which an individual received benefits under the supplemental
nutrition assistance program prior to October 1, 2010.

(f) * FUNDING*.--There are appropriated to the Secretary out of
funds of the Treasury not otherwise appropriated such sums as are
necessary to carry out this section.

/Sec. 102. Agricultural Disaster Assistance Transition/. (a)/
Federal Crop Insurance Act./ Section 531(g) of the Federal Crop
Insurance Act (7 U.S.C. 1531(g)) is amended by adding at the end the
following:

``(7) /2008/* TRANSITION ASSISTANCE*.--

``(A) *IN GENERAL*.--Eligible producers on a farm described in
subparagraph (A) of paragraph (4) that failed to timely pay the
appropriate fee described in that subparagraph shall be eligible for
assistance under this section in accordance with subparagraph (B) if the
eligible producers on the farm--

``(i) pay the appropriate fee described in paragraph (4)(A) not
later than 90 days after the date of enactment of this paragraph; and

``(ii)(I) in the case of each insurable commodity of the eligible
producers on the farm, excluding grazing land, agree to obtain a policy
or plan of insurance under subtitle A (excluding a crop insurance pilot
program under that subtitle) for the next insurance year for which crop
insurance is available to the eligible producers on the farm at a level
of coverage equal to 70 percent or more of the recorded or appraised
average yield indemnified at 100 percent of the expected market price,
or an equivalent coverage; and

``(II) in the case of each noninsurable commodity of the eligible
producers on the farm, agree to file the required paperwork, and pay the
administrative fee by the applicable State filing deadline, for the
noninsured crop assistance program for the next year for which a policy
is available.

``(B) *AMOUNT OF ASSISTANCE*.--Eligible producers on a farm that
meet the requirements of subparagraph (A) shall be eligible to receive
assistance under this section as if the eligible producers on the farm--

``(i) in the case of each insurable commodity of the eligible
producers on the farm, had obtained a policy or plan of insurance for
the 2008 crop year at a level of coverage not to exceed 70 percent or
more of the recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent coverage; and

``(ii) in the case of each noninsurable commodity of the eligible
producers on the farm, had filed the required paperwork, and paid the
administrative fee by the applicable State filing deadline, for the
noninsured crop assistance program for the 2008 crop year, except that
in determining the level of coverage, the Secretary shall use 70 percent
of the applicable yield.

``(C) *EQUITABLE RELIEF*.--Except as provided in subparagraph (D),
eligible producers on a farm that met the requirements of paragraph (1)
before the deadline described in paragraph (4)(A) and are eligible to
receive, a disaster assistance payment under this section for a
production loss during the 2008 crop year shall be eligible to receive
an amount equal to the greater of--

``(i) the amount that would have been calculated under subparagraph
(B) if the eligible producers on the farm had paid the appropriate fee
under that subparagraph; or

``(ii) the amount that would have been calculated under subparagraph
(A) of subsection (b)(3) if--

``(I) in clause (i) of that subparagraph, `120 percent' is
substituted for `115 percent'; and

``(II) in clause (ii) of that subparagraph, `125' is substituted for
`120 percent'.

``(D) *LIMITATION*.--For amounts made available under this
paragraph, the Secretary may make such adjustments as are necessary to
ensure that no producer receives a payment under this paragraph for an
amount in excess of the assistance received by a similarly situated
producer that had purchased the same or higher level of crop insurance
prior to the date of enactment of this paragraph.

``(E) *AUTHORITY OF THE SECRETARY*.--The Secretary may provide such
additional assistance as the Secretary considers appropriate to provide
equitable treatment for eligible producers on a farm that suffered
production losses in the 2008 crop year that result in multiyear
production losses, as determined by the Secretary.

``(F) *LACK OF ACCESS*.--Notwithstanding any other provision of this
section, the Secretary may provide assistance under this section to
eligible producers on a farm that--

``(i) suffered a production loss due to a natural cause during the
2008 crop year; and

``(ii) as determined by the Secretary--

``(I)(aa) except as provided in item (bb), lack access to a policy
or plan of insurance under subtitle A; or

``(bb) do not qualify for a written agreement because 1 or more
farming practices, which the Secretary has determined are good farming
practices, of the eligible producers on the farm

[Page: H1310]

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*.--

``(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

``(i) the amount that would have been calculated under subparagraph
(B) if the eligible producers on the farm had paid the appropriate fee
under that subparagraph; or

``(ii) the amount that would have been calculated under subparagraph
(A) of subsection (b)(3) if--

``(I) in clause (i) of that subparagraph, `120 percent' is
substituted for `115 percent'; and

``(II) in clause (ii) of that subparagraph, `125' is substituted for
`120 percent'.

``(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).''.

(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.

(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:

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/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

[Page: H1312]

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

[Page: H1313]

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,

[Page: H1314]

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:

[Page: H1315]

``(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

*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

[Page: H1316]

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, hereafter, 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

[Page: H1317]

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).

(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).

(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.

(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.

[Page: H1318]

(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 4119a)(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 ``$5,00,000''; 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

[Page: H1319]

(1) by striking subsection (c) and inserting the following:

``(c) 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:

(2) an assessment of whether surety companies and small business
concerns could benefit from an alternative funding structure; and

(e) *REPORT*--Not later than 180 days after the date of 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.

(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.

(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
promulgate regulations under this section within 30 days after the date
of enactment of this section. In promulgating these regulations, the
Administrator the notice requirements of section 553(b) of title 5 of
the United States Code shall not apply.

TITLE VI--DEPARTMENT OF HOMELAND SECURITY

Office of the Under Secretary for Management

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

*OFFICE OF INSPECTOR GENERAL*

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

U.S. Customs and Border Protection

*SALARIES AND EXPENSES*

For an additional amount for ``Salaries and Expenses'',
$160,000,000, of which $100,000,000 shall be for the procurement and
deployment of non-intrusive inspection systems; and of which $60,000,000
shall be for procurement and deployment of tactical communications
equipment and radios: /Provided,/ That no later than 45 days

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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

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on a regular basis receives training during fiscal year 2009 on the
requirements of this section and the regulations implementing this section.

(2) *INCLUSION OF INFORMATION IN NEW TRAINING PROGRAMS*.--The
Secretary shall ensure that any training program for the acquisition
workforce developed or implemented after the date of the enactment of
this Act includes comprehensive information on the requirements
described in paragraph (1).

(k) *CONSISTENCY WITH INTERNATIONAL AGREEMENTS.*--This section shall
be applied in a manner consistent with United States obligations under
international agreements.

(l) *EFFECTIVE DATE*.--This section applies with respect to
contracts entered into by the Department of Homeland Security 180 days
after the date of the enactment of this Act.

TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

*MANAGEMENT OF LANDS AND RESOURCES*

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

*CONSTRUCTION*

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

*WILDLAND FIRE MANAGEMENT*

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

United States Fish and Wildlife Service

*RESOURCE MANAGEMENT*

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

*CONSTRUCTION*

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

National Park Service

*OPERATION OF THE NATIONAL PARK SYSTEM*

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

HISTORIC PRESERVATION FUND

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

*CONSTRUCTION*

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

United States Geological Survey

*SURVEYS, INVESTIGATIONS, AND RESEARCH*

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

Bureau of Indian Affairs

*OPERATION OF INDIAN PROGRAMS*

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

*CONSTRUCTION*

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

*INDIAN GUARANTEED LOAN PROGRAM ACCOUNT*

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

Office of Inspector General

*SALARIES AND EXPENSES*

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

ENVIROMENTAL PROTECTION AGENCY

Office of Inspector General

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

Hazardous Substance Superfund

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

Leaking Underground Storage Tank Trust Fund Program

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

State and Tribal Assistance Grants

*(INCLUDING TRANSFERS OF FUNDS)*

For an additional amount for ``State and Tribal Assistance Grants'',
$6,400,000,000, which shall be allocated as follows:

(1) $4,000,000,000 shall be for capitalization grants for the Clean
Water State Revolving Funds under title VI of the Federal Water
Pollution Control Act and $2,000,000,000 shall be for capitalization
grants under section 1452 of the Safe Drinking Water Act: /Provided,/
That the Administrator may retain up to 1 percent of the funds
appropriated herein for management and oversight purposes: /Provided
further,/ That funds appropriated herein shall not be subject to the
matching or cost share requirements of sections 602(b)(2), 602(b)(3) or
202 of the Federal Water Pollution Control Act nor the matching
requirements of section 1452(e) of the Safe Drinking Water Act:
/Provided further,/ That the Administrator shall reallocate funds
appropriated herein for the Clean and Drinking Water State Revolving
Funds (Revolving Funds) where projects are not under contract or
construction within 12 months of the date of enactment of this Act:
/Provided further,/ That notwithstanding the priority rankings they
would otherwise receive under each program, priority for funds
appropriated herein shall be given to projects on a State priority list
that are ready to proceed to construction within 12 months of the date
of enactment of this Act: /Provided further,/ That notwithstanding the
requirements of section 603(d) of the Federal Water Pollution Control
Act or section 1452(f) of the Safe Drinking Water Act, for the funds
appropriated herein, each State shall use not less than 50 percent of
the amount of its capitalization grants to provide additional
subsidization to eligible recipients in the form of forgiveness of
principal, negative interest loans or grants or any combination of
these: /Provided further,/ That, to the extent there are sufficient
eligible project applications, not less than 20 percent of the funds
appropriated herein for the Revolving Funds shall be for projects to
address green infrastructure, water or energy efficiency improvements or
other environmentally innovative activities: /Provided further,/ That
notwithstanding the limitation on amounts specified in section 518(c) of
the Federal Water Pollution Control Act, up to 1.5 percent of the funds
appropriated herein for the Clean Water State Revolving Funds may be
reserved by the Administrator for tribal grants under section 518(c) of
such Act: /Provided further,/ That up to 4 percent of the funds
appropriated herein for tribal set-asides under the Revolving Funds may
be transferred to the Indian Health Service to support management and
oversight of tribal projects: /Provided further,/ That none of the funds
appropriated herein shall be available for the purchase of land or
easements as authorized by section 603(c) of the Federal Water Pollution
Control Act or for activities authorized by section 1452(k) of the Safe
Drinking Water Act: /Provided further,/ That notwithstanding section
603(d)(2) of the Federal Water Pollution Control Act and section
1452(f)(2) of the Safe Drinking Water Act, funds may be used to buy,
refinance or restructure the debt obligations of eligible recipients
only where such debt was incurred on or after October 1, 2008;

(2) $100,000,000 shall be to carry out Brownfields projects
authorized by section 104(k) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980: /Provided,/ That the
Administrator may reserve up to 3.5 percent of the funds appropriated
herein for management and oversight purposes: /Provided further,/ That
none of the funds appropriated herein shall be subject to cost share
requirements under section 104(k)(9)(B)(iii) of such Act; and

(3) $300,000,000 shall be for Diesel Emission Reduction Act grants
pursuant to title VII, subtitle G of the Energy Policy Act of 2005:
/Provided,/ That the Administrator may reserve up to 2 percent of the
funds appropriated herein for management and oversight purposes:
/Provided further,/ That none of the funds appropriated herein for
Diesel Emission Reduction Act grants shall be subject to the State Grant
and Loan Program Matching Incentive provisions of section 793(c)(3) of
such Act.

Administrative Provision, Environmental Protection Agency

(INCLUDING TRANSFERS OF FUNDS)

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

DEPARTMENT OF AGRICULTURE

Forest Service

*CAPITAL IMPROVEMENT AND MAINTENANCE*

For an additional amount for ``Capital Improvement and
Maintenance'', $650,000,000, for

[Page: H1322]

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

[Page: H1323]

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

*OFFICE OF INSPECTOR GENERAL*

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration

*HEALTH RESOURCES AND SERVICES*

For an additional amount for ``Health Resources and Services'',
$2,500,000,000 which shall be used as follows:

(1) $500,000,000 shall be for grants to health centers authorized
under section 330 of the Public Health Service Act (``PHS Act'');

(2) $1,500,000,000 shall be available for grants for construction,
renovation and equipment, and for the acquisition of health information
technology systems, for health centers including health center
controlled networks receiving operating grants under section 330 of the
PHS Act, notwithstanding the limitation in section 330(e)(3); and

(3) $500,000,000 to address health professions workforce shortages,
of which $75,000,000 for the National Health Service Corps shall remain
available through September 30, 2011: /Provided,/ That funds may be used
to provide scholarships, loan repayment, and grants to training programs
for equipment as authorized in the PHS Act, and grants authorized in
sections 330L, 747, 767 and 768 of the PHS Act: /Provided further,/ That
20 percent of the funds allocated to the National Health Service Corps
shall be used for field operations:

/Provided,/ That up to 0.5 percent of funds provided in this
paragraph may used for administration of such funds: /Provided further,/
That the Secretary shall provide to the Committees on Appropriations of
the House of Representatives and the Senate an operating plan detailing
activities to be supported and timelines for expenditure prior to making
any Federal obligations of funds provided in this paragraph but not
later than 90 days after the date of enactment of this Act: /Provided
further,/ That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate a report
on the actual obligations, expenditures, and unobligated balances for
each activity funded in this paragraph not later than November 1, 2009
and every 6 months thereafter as long as funding provided in this
paragraph is available for obligation or expenditure.

National Institutes of Health

*NATIONAL CENTER FOR RESEARCH RESOURCES*

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

*OFFICE OF THE DIRECTOR*

*(INCLUDING TRANSFER OF FUNDS)*

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

*BUILDINGS AND FACILITIES*

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

Agency for Healthcare Research and Quality

*HEALTHCARE RESEARCH AND QUALITY*

*(INCLUDING TRANSFER OF FUNDS)*

For an additional amount for ``Healthcare Research and Quality'' to
carry out titles III and IX of the Public Health Service Act, part A of
title XI of the Social Security Act, and section 1013 of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003,
$700,000,000 for comparative effectiveness research: /Provided/, That of
the amount appropriated in this paragraph, $400,000,000 shall be
transferred to the Office of the Director of the National Institutes of
Health (``Office of the Director'') to conduct or support comparative
effectiveness research under section 301 and title IV of the Public
Health Service Act: /Provided further/, That funds transferred to the
Office of the Director may be transferred to the Institutes and Centers
of the National Institutes of Health and to the Common Fund established
under section 402A(c)(1) of the Public Health Service Act: /Provided
further/, That this transfer authority is in addition to any other
transfer authority available to the National Institutes of Health:
/Provided further/, That within the amount available in this paragraph
for the Agency for Healthcare Research and Quality, not more than 1
percent shall be made available for additional full-time equivalents.

In addition, $400,000,000 shall be available for comparative
effectiveness research to be allocated at the discretion of the
Secretary of Health and Human Services (``Secretary''): /Provided/, That
the funding appropriated in this paragraph shall be used to accelerate
the development and dissemination of research assessing the comparative
effectiveness of health care treatments and strategies, through efforts
that: (1) conduct, support, or synthesize research that compares the
clinical outcomes, effectiveness, and appropriateness of items,
services, and procedures that are used to prevent, diagnose, or treat
diseases, disorders, and other health conditions; and (2) encourage the
development and use of clinical registries, clinical data networks, and
other forms of electronic health data that can be used to generate or
obtain outcomes data: /Provided further/, That the Secretary shall enter
into a contract with the Institute of Medicine, for which no more than
$1,500,000 shall be made available from funds provided in this
paragraph, to produce and submit a report to the Congress and the
Secretary by not later than June 30, 2009, that includes recommendations
on the national priorities for comparative effectiveness research to be
conducted or supported with the funds provided in this paragraph and
that considers input from stakeholders: /Provided further/, That the
Secretary shall consider any recommendations of the Federal Coordinating
Council for Comparative Effectiveness Research established by section
804 of this Act and any recommendations included in the Institute of
Medicine report pursuant to the preceding proviso in designating
activities to receive funds provided in this paragraph and may make
grants and contracts with appropriate entities, which may include
agencies within the Department of Health and Human Services and other
governmental agencies, as well as private sector entities, that have
demonstrated experience and capacity to achieve the goals of comparative
effectiveness research: /Provided further/, That the Secretary shall
publish information on grants and contracts awarded with the funds
provided under this heading within a reasonable time of the obligation
of funds for such grants and contracts and shall disseminate research
findings from such grants and contracts to clinicians, patients, and the
general public, as appropriate: /Provided further/, That, to the extent
feasible, the Secretary shall ensure that the recipients of the funds
provided by this paragraph offer an opportunity for public comment on
the research: /Provided further/, That research conducted with funds
appropriated under this paragraph shall be consistent with Departmental
policies relating to the inclusion of women and minorities in research:
/Provided further/, That the Secretary shall provide the Committees on
Appropriations of the House of Representatives and the Senate, the
Committee on Energy and Commerce and the Committee on Ways and Means of
the House of Representatives, and the Committee on Health, Education,
Labor, and Pensions and the Committee on Finance of the Senate with an
annual report on the research conducted or supported through the funds
provided under this heading: /Provided further/, That the Secretary,
jointly with the Directors of the Agency for Healthcare Research and
Quality and the National Institutes of Health, shall provide the
Committees on Appropriations of the House of Representatives and the
Senate a fiscal year 2009 operating plan for the funds appropriated
under this heading prior to making any Federal obligations of such funds

[Page: H1324]

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,

[Page: H1325]

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

[Page:
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or purchase of such site: /Provided further,/ That the construction plan
and site selection for such center shall be subject to review and
approval by the Office of Management and Budget: /Provided further/,
That such center shall continue to be a government-operated facility; and

(2) $500,000,000 for processing disability and retirement workloads,
including information technology acquisitions and research in support of
such activities: /Provided/, That up to $40,000,000 may be used by the
Commissioner of Social Security for health information technology
research and activities to facilitate the adoption of electronic medical
records in disability claims, including the transfer of funds to
``Supplemental Security Income Program'' to carry out activities under
section 1110 of the Social Security Act.

Office of Inspector General

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

GENERAL PROVISIONS--THIS TITLE

*SEC.* 801. (a) Up to 1 percent of the funds made available to the
Department of Labor in this title may be used for the administration,
management, and oversight of the programs, grants, and activities funded
by such appropriation, including the evaluation of the use of such funds.

(b) Funds designated for these purposes may be available for
obligation through September 30, 2010.

(c) Not later than 30 days after enactment of this Act, the
Secretary of Labor shall provide an operating plan describing the
proposed use of funds for the purposes described in (a).

/Sec. 802. / /Report on the Impact of Past and Future Minimum Wage
Increases./ // (a)/ In General.--/Section 8104 of the U.S. Troop
Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 189) is amended
to read as follows:

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

``(a) /Study/.--Beginning on the date that is 60 days after the date
of enactment of this Act, and every year thereafter until the minimum
wage in the respective territory is $7.25 per hour, the Government
Accountability Office shall conduct a study to--

``(1) assess the impact of the minimum wage increases that occurred
in American Samoa and the Commonwealth of the Northern Mariana Islands
in 2007 and 2008, as required under Public Law 110-28, on the rates of
employment and the living standards of workers, with full consideration
of the other factors that impact rates of employment and the living
standards of workers such as inflation in the cost of food, energy, and
other commodities; and

``(2) estimate the impact of any further wage increases on rates of
employment and the living standards of workers in American Samoa and the
Commonwealth of the Northern Mariana Islands, with full consideration of
the other factors that may impact the rates of employment and the living
standards of workers, including assessing how the profitability of major
private sector firms may be impacted by wage increases in comparison to
other factors such as energy costs and the value of tax benefits.

``(b) /Report/.--No earlier than March 15, 2010, and not later than
April 15, 2010, the Government Accountability Office shall transmit its
first report to Congress concerning the findings of the study required
under subsection (a). The Government Accountability Office shall
transmit any subsequent reports to Congress concerning the findings of a
study required by subsection (a) between March 15 and April 15 of each year.

``(c) /Economic Information/.--To provide sufficient economic data
for the conduct of the study under subsection (a) the Bureau of the
Census of the Department of Commerce shall include and separately report
on American Samoa, the Commonwealth of the Northern Mariana Islands,
Guam, and the Virgin Islands in its County Business Patterns data with
the same regularity and to the same extent as each Bureau collects and
reports such data for the 50 States. In the event that the inclusion of
American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
and the Virgin Islands in such surveys and data compilations requires
time to structure and implement, the Bureau of the Census shall in the
interim annually report the best available data that can feasibly be
secured with respect to such territories. Such interim report shall
describe the steps the Bureau will take to improve future data
collection in the territories to achieve comparability with the data
collected in the United States. The Bureau of the Census, together with
the Department of the Interior, shall coordinate their efforts to
achieve such improvements.''.

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

/Sec. 803. / /Eligible Employees in the Recreational Marine
Industry./ Section 2(3)(F) of the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 902(3)(F)) is amended--

(1) by striking ``, repair or dismantle''; and

(2) by striking the semicolon and inserting ``, or individuals
employed to repair any recreational vessel, or to dismantle any part of
a recreational vessel in connection with the repair of such vessel;''.

*SEC.* 804. *FEDERAL COORDINATING COUNCIL FOR COMPARATIVE
EFFECTIVENESS RESEARCH.* (a) *ESTABLISHMENT*.--There is hereby
established a Federal Coordinating Council for Comparative Effectiveness
Research (in this section referred to as the ``Council'').

(b) *PURPOSE*.--The Council shall foster optimum coordination of
comparative effectiveness and related health services research conducted
or supported by relevant Federal departments and agencies, with the goal
of reducing duplicative efforts and encouraging coordinated and
complementary use of resources.

(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

[Page: H1327]

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.

[Page: H1328]

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'';

``(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

[Page: H1329]

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

(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.

(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

[Page: H1330]

(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

[Page: H1331]

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 highwaty 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),

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$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 comming led 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 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 provision 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 hbefore 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

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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.

(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

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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)

[Page: H1335]

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 Funds''.

Home Investment Partnerships Program

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

Homelessness Prevention Fund

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

Housing Programs

assisted housing stability and energy and green retrofit investments

For assistance to owners of properties receiving project-based
assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C.
17012), section 811 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of
1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which
$2,000,000,000 shall be for an additional amount for paragraph (1) under
the heading ``Project-Based Rental Assistance'' in Public Law 110-161
for payments to owners for 12-month periods, and of which $250,000,000
shall be for grants or loans for energy retrofit and green investments
in such assisted housing: /Provided,/ That projects funded with grants
or loans provided under this heading must comply with the requirements
of subchapter IV of chapter 31 of title 40, United States Code:
/Provided further,/ That such grants or loans shall be provided through
the policies, procedures, contracts, and transactional infrastructure of
the authorized programs administered by the Office of Affordable Housing
Preservation of the Department of Housing and Urban Development, on such
terms and conditions as the Secretary of Housing and Urban Development
deems appropriate to ensure the maintenance and preservation of the
property, the continued operation and maintenance of energy efficiency
technologies, and the timely expenditure of funds: /Provided further,/
That the Secretary may provide incentives to owners to undertake energy
or green retrofits as a part of such grant or loan terms, including, but
not limited to, fees to cover investment oversight and implementation by
said owner, or to encourage job creation for low-income or very
low-income individuals: /Provided further,/ That the Secretary may share
in a portion of future property

[Page: H1336]

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

[Page: H1337]

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

[Page: H1338]

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

[Page: H1339]

than 12 months after the date of the enactment of this title, the
Secretary shall appoint a Chief Privacy Officer of the Office of the
National Coordinator, whose duty it shall be to advise the National
Coordinator on privacy, security, and data stewardship of electronic
health information and to coordinate with other Federal agencies (and
similar privacy officers in such agencies), with State and regional
efforts, and with foreign countries with regard to the privacy,
security, and data stewardship of electronic individually identifiable
health information.

*``SEC. 3002. HIT POLICY COMMITTEE.*

``(a) /Establishment/.--There is established a HIT Policy Committee
to make policy recommendations to the National Coordinator relating to
the implementation of a nationwide health information technology
infrastructure, including implementation of the strategic plan described
in section 3001(c)(3).

``(b) /Duties/.--

``(1) *RECOMMENDATIONS ON HEALTH INFORMATION TECHNOLOGY
INFRASTRUCTURE*.--The HIT Policy Committee shall recommend a policy
framework for the development and adoption of a nationwide health
information technology infrastructure that permits the electronic
exchange and use of health information as is consistent with the
strategic plan under section 3001(c)(3) and that includes the
recommendations under paragraph (2). The Committee shall update such
recommendations and make new recommendations as appropriate.

``(2) *SPECIFIC AREAS OF STANDARD DEVELOPMENT*.--

``(A) *IN GENERAL*.--The HIT Policy Committee shall recommend the
areas in which standards, implementation specifications, and
certification criteria are needed for the electronic exchange and use of
health information for purposes of adoption under section 3004 and shall
recommend an order of priority for the development, harmonization, and
recognition of such standards, specifications, and certification
criteria among the areas so recommended. Such standards and
implementation specifications shall include named standards,
architectures, and software schemes for the authentication and security
of individually identifiable health information and other information as
needed to ensure the reproducible development of common solutions across
disparate entities.

``(B) *AREAS REQUIRED FOR CONSIDERATION*.--For purposes of
subparagraph (A), the HIT Policy Committee shall make recommendations
for at least the following areas:

``(i) Technologies that protect the privacy of health information
and promote security in a qualified electronic health record, including
for the segmentation and protection from disclosure of specific and
sensitive individually identifiable health information with the goal of
minimizing the reluctance of patients to seek care (or disclose
information about a condition) because of privacy concerns, in
accordance with applicable law, and for the use and disclosure of
limited data sets of such information.

``(ii) A nationwide health information technology infrastructure
that allows for the electronic use and accurate exchange of health
information.

``(iii) The utilization of a certified electronic health record for
each person in the United States by 2014.

``(iv) Technologies that as a part of a qualified electronic health
record allow for an accounting of disclosures made by a covered entity
(as defined for purposes of regulations promulgated under section 264(c)
of the Health Insurance Portability and Accountability Act of 1996) for
purposes of treatment, payment, and health care operations (as such
terms are defined for purposes of such regulations).

``(v) The use of certified electronic health records to improve the
quality of health care, such as by promoting the coordination of health
care and improving continuity of health care among health care
providers, by reducing medical errors, by improving population health,
by reducing health disparities, by reducing chronic disease, and by
advancing research and education.

``(vi) Technologies that allow individually identifiable health
information to be rendered unusable, unreadable, or indecipherable to
unauthorized individuals when such information is transmitted in the
nationwide health information network or physically transported outside
of the secured, physical perimeter of a health care provider, health
plan, or health care clearinghouse.

``(vii) The use of electronic systems to ensure the comprehensive
collection of patient demographic data, including, at a minimum, race,
ethnicity, primary language, and gender information.

``(viii) Technologies that address the needs of children and other
vulnerable populations.

``(C) *OTHER AREAS FOR CONSIDERATION*.--In making recommendations
under subparagraph (A), the HIT Policy Committee may consider the
following additional areas:

``(i) The appropriate uses of a nationwide health information
infrastructure, including for purposes of--

``(I) the collection of quality data and public reporting;

``(II) biosurveillance and public health;

``(III) medical and clinical research; and

``(IV) drug safety.

``(ii) Self-service technologies that facilitate the use and
exchange of patient information and reduce wait times.

``(iii) Telemedicine technologies, in order to reduce travel
requirements for patients in remote areas.

``(iv) Technologies that facilitate home health care and the
monitoring of patients recuperating at home.

``(v) Technologies that help reduce medical errors.

``(vi) Technologies that facilitate the continuity of care among
health settings.

``(vii) Technologies that meet the needs of diverse populations.

``(viii) Methods to facilitate secure access by an individual to
such individual's protected health information.

``(ix) Methods, guidelines, and safeguards to facilitate secure
access to patient information by a family member, caregiver, or guardian
acting on behalf of a patient due to age-related and other disability,
cognitive impairment, or dementia.

``(x) Any other technology that the HIT Policy Committee finds to be
among the technologies with the greatest potential to improve the
quality and efficiency of health care.

``(3) *FORUM*.--The HIT Policy Committee shall serve as a forum for
broad stakeholder input with specific expertise in policies relating to
the matters described in paragraphs (1) and (2).

``(4) *CONSISTENCY WITH EVALUATION CONDUCTED UNDER MIPPA*.--

``(A) *REQUIREMENT FOR CONSISTENCY*.--The HIT Policy Committee shall
ensure that recommendations made under paragraph (2)(B)(vi) are
consistent with the evaluation conducted under section 1809(a) of the
Social Security Act.

``(B) *SCOPE*.--Nothing in subparagraph (A) shall be construed to
limit the recommendations under paragraph (2)(B)(vi) to the elements
described in section 1809(a)(3) of the Social Security Act.

``(C) *TIMING*.--The requirement under subparagraph (A) shall be
applicable to the extent that evaluations have been conducted under
section 1809(a) of the Social Security Act, regardless of whether the
report described in subsection (b) of such section has been submitted.

``(c) /Membership and Operations/.--

``(1) *IN GENERAL*.--The National Coordinator shall take a leading
position in the establishment and operations of the HIT Policy Committee.

``(2) *MEMBERSHIP*.--The HIT Policy Committee shall be composed of
members to be appointed as follows:

``(A) 3 members shall be appointed by the Secretary, 1 of whom shall
be appointed to represent the Department of Health and Human Services
and 1 of whom shall be a public health official.

``(B) 1 member shall be appointed by the majority leader of the Senate.

``(C) 1 member shall be appointed by the minority leader of the Senate.

``(D) 1 member shall be appointed by the Speaker of the House of
Representatives.

``(E) 1 member shall be appointed by the minority leader of the
House of Representatives.

``(F) Such other members as shall be appointed by the President as
representatives of other relevant Federal agencies.

``(G) 13 members shall be appointed by the Comptroller General of
the United States of whom--

``(i) 3 members shall advocates for patients or consumers;

``(ii) 2 members shall represent health care providers, one of which
shall be a physician;

``(iii) 1 member shall be from a labor organization representing
health care workers;

``(iv) 1 member shall have expertise in health information privacy
and security;

``(v) 1 member shall have expertise in improving the health of
vulnerable populations;

``(vi) 1 member shall be from the research community;

``(vii) 1 member shall represent health plans or other third-party
payers;

``(viii) 1 member shall represent information technology vendors;

``(ix) 1 member shall represent purchasers or employers; and

``(x) 1 member shall have expertise in health care quality
measurement and reporting.

``(3) *PARTICIPATION*.--The members of the HIT Policy Committee
appointed under paragraph (2) shall represent a balance among various
sectors of the health care system so that no single sector unduly
influences the recommendations of the Policy Committee.

``(4) *TERMS*.--

``(A) *IN GENERAL*.--The terms of the members of the HIT Policy
Committee shall be for 3 years, except that the Comptroller General
shall designate staggered terms for the members first appointed.

``(B) *VACANCIES*.--Any member appointed to fill a vacancy in the
membership of the HIT Policy Committee that occurs prior to the
expiration of the term for which the member's predecessor was appointed
shall be appointed only for the remainder of that term. A member may
serve after the expiration of that member's term until a successor has
been appointed. A vacancy in the HIT Policy Committee shall be filled in
the manner in which the original appointment was made.

``(5) *OUTSIDE INVOLVEMENT*.--The HIT Policy Committee shall ensure
an opportunity for the participation in activities of the Committee of
outside advisors, including individuals with expertise in the
development of policies for the electronic exchange and use of health
information, including in the areas of health information privacy and
security.

``(6) *QUORUM*.--A majority of the member of the HIT Policy
Committee shall constitute a quorum for purposes of voting, but a lesser
number of members may meet and hold hearings.

``(7) *FAILURE OF INITIAL APPOINTMENT*.--If, on the date that is 45
days after the date of enactment of this title, an official authorized
under paragraph (2) to appoint one or more members of the HIT Policy
Committee has not appointed the full number of members that such
paragraph authorizes such official to appoint, the Secretary is
authorized to appoint such members.

``(8) *CONSIDERATION*.--The National Coordinator shall ensure that
the relevant and available recommendations and comments from the

[Page: H1340]

National Committee on Vital and Health Statistics are considered in the
development of policies.

``(d) /Application of FACA/.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14 of such Act, shall apply to the HIT
Policy Committee.

``(e) /Publication/.--The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of the
Office of the National Coordinator for Health Information Technology of
all policy recommendations made by the HIT Policy Committee under this
section.

*``SEC. 3003. HIT STANDARDS COMMITTEE.*

``(a) /Establishment/.--There is established a committee to be known
as the HIT Standards Committee to recommend to the National Coordinator
standards, implementation specifications, and certification criteria for
the electronic exchange and use of health information for purposes of
adoption under section 3004, consistent with the implementation of the
strategic plan described in section 3001(c)(3) and beginning with the
areas listed in section 3002(b)(2)(B) in accordance with policies
developed by the HIT Policy Committee.

``(b) /Duties/.--

``(1) *STANDARDS DEVELOPMENT*.--

``(A) *IN GENERAL*.--The HIT Standards Committee shall recommend to
the National Coordinator standards, implementation specifications, and
certification criteria described in subsection (a) that have been
developed, harmonized, or recognized by the HIT Standards Committee. The
HIT Standards Committee shall update such recommendations and make new
recommendations as appropriate, including in response to a notification
sent under section 3004(a)(2)(B). Such recommendations shall be
consistent with the latest recommendations made by the HIT Policy Committee.

``(B) *HARMONIZATION*.--The HIT Standards Committee recognize
harmonized or updated standards from an entity or entities for the
purpose of harmonizing or updating standards and implementation
specifications in order to achieve uniform and consistent implementation
of the standards and implementation specifications.

``(C) *PILOT TESTING OF STANDARDS AND IMPLEMENTATION
SPECIFICATIONS*.--In the development, harmonization, or recognition of
standards and implementation specifications, the HIT Standards Committee
shall, as appropriate, provide for the testing of such standards and
specifications by the National Institute for Standards and Technology
under section 13201(a) of the Health Information Technology for Economic
and Clinical Health Act.

``(D) *CONSISTENCY*.--The standards, implementation specifications,
and certification criteria recommended under this subsection shall be
consistent with the standards for information transactions and data
elements adopted pursuant to section 1173 of the Social Security Act.

``(2) *FORUM*.--The HIT Standards Committee shall serve as a forum
for the participation of a broad range of stakeholders to provide input
on the development, harmonization, and recognition of standards,
implementation specifications, and certification criteria necessary for
the development and adoption of a nationwide health information
technology infrastructure that allows for the electronic use and
exchange of health information.

``(3) *SCHEDULE*.--Not later than 90 days after the date of the
enactment of this title, the HIT Standards Committee shall develop a
schedule for the assessment of policy recommendations developed by the
HIT Policy Committee under section 3002. The HIT Standards Committee
shall update such schedule annually. The Secretary shall publish such
schedule in the Federal Register.

``(4) *PUBLIC INPUT*.--The HIT Standards Committee shall conduct
open public meetings and develop a process to allow for public comment
on the schedule described in paragraph (3) and recommendations described
in this subsection. Under such process comments shall be submitted in a
timely manner after the date of publication of a recommendation under
this subsection.

``(5) *CONSIDERATION*.--The National Coordinator shall ensure that
the relevant and available recommendations and comments from the
National Committee on Vital and Health Statistics are considered in the
development of standards.

``(c) /Membership and Operations/.--

``(1) *IN GENERAL*.--The National Coordinator shall take a leading
position in the establishment and operations of the HIT Standards Committee.

``(2) *MEMBERSHIP*.--The membership of the HIT Standards Committee
shall at least reflect providers, ancillary healthcare workers,
consumers, purchasers, health plans, technology vendors, researchers,
relevant Federal agencies, and individuals with technical expertise on
health care quality, privacy and security, and on the electronic
exchange and use of health information.

``(3) *PARTICIPATION*.--The members of the HIT Standards Committee
appointed under this subsection shall represent a balance among various
sectors of the health care system so that no single sector unduly
influences the recommendations of such Committee.

``(4) *OUTSIDE INVOLVEMENT*.--The HIT Policy Committee shall ensure
an opportunity for the participation in activities of the Committee of
outside advisors, including individuals with expertise in the
development of standards for the electronic exchange and use of health
information, including in the areas of health information privacy and
security.

``(5) *BALANCE AMONG SECTORS*.--In developing the procedures for
conducting the activities of the HIT Standards Committee, the HIT
Standards Committee shall act to ensure a balance among various sectors
of the health care system so that no single sector unduly influences the
actions of the HIT Standards Committee.

``(6) *ASSISTANCE*.--For the purposes of carrying out this section,
the Secretary may provide or ensure that financial assistance is
provided by the HIT Standards Committee to defray in whole or in part
any membership fees or dues charged by such Committee to those consumer
advocacy groups and not for profit entities that work in the public
interest as a part of their mission.

``(d) /Application of FACA/.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14, shall apply to the HIT Standards
Committee.

``(e) /Publication/.--The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of the
Office of the National Coordinator for Health Information Technology of
all recommendations made by the HIT Standards Committee under this section.

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

``(a) /Process for Adoption of Endorsed Recommendations/.--

``(1) *REVIEW OF ENDORSED STANDARDS, IMPLEMENTATION SPECIFICATIONS,
AND CERTIFICATION CRITERIA*.--Not later than 90 days after the date of
receipt of standards, implementation specifications, or certification
criteria endorsed under section 3001(c), the Secretary, in consultation
with representatives of other relevant Federal agencies, shall jointly
review such standards, implementation specifications, or certification
criteria and shall determine whether or not to propose adoption of such
standards, implementation specifications, or certification criteria.

``(2) *DETERMINATION TO ADOPT STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA*.--If the Secretary determines--

``(A) to propose adoption of any grouping of such standards,
implementation specifications, or certification criteria, the Secretary
shall, by regulation under section 553 of title 5, United States Code,
determine whether or not to adopt such grouping of standards,
implementation specifications, or certification criteria; or

``(B) not to propose adoption of any grouping of standards,
implementation specifications, or certification criteria, the Secretary
shall notify the National Coordinator and the HIT Standards Committee in
writing of such determination and the reasons for not proposing the
adoption of such recommendation.

``(3) *PUBLICATION*.--The Secretary shall provide for publication in
the Federal Register of all determinations made by the Secretary under
paragraph (1).

``(b) /Adoption of Standards, Implementation Specifications, and
Certification Criteria/.--

``(1) *IN GENERAL*.--Not later than December 31, 2009, the Secretary
shall, through the rulemaking process consistent with subsection
(a)(2)(A), adopt an initial set of standards, implementation
specifications, and certification criteria for the areas required for
consideration under section 3002(b)(2)(B). The rulemaking for the
initial set of standards, implementation specifications, and
certification criteria may be issued on an interim, final basis.

``(2) *APPLICATION OF CURRENT STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA*.--The standards,
implementation specifications, and certification criteria adopted before
the date of the enactment of this title through the process existing
through the Office of the National Coordinator for Health Information
Technology may be applied towards meeting the requirement of paragraph (1).

``(3) *SUBSEQUENT STANDARDS ACTIVITY*.--The Secretary shall adopt
additional standards, implementation specifications, and certification
criteria as necessary and consistent with the schedule published under
section 3003(b)(2).

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

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

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

``(a) /In General/.--Except as provided under section 13112 of the
HITECH Act, nothing in such Act or in the amendments made by such Act
shall be construed--

``(1) to require a private entity to adopt or comply with a standard
or implementation specification adopted under section 3004; or

``(2) to provide a Federal agency authority, other than the
authority such agency may have under other provisions of law, to require
a private entity to comply with such a standard or implementation
specification.

``(b) /Rule of Construction/.--Nothing in this subtitle shall be
construed to require that a private entity that enters into a contract
with the Federal Government apply or use the standards and
implementation specifications adopted under section 3004 with respect to
activities not related to the contract.

*``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.*

``(a) /In General/.--The National Coordinator shall support the
development and routine updating of qualified electronic health record
technology (as defined in section 3000) consistent with subsections (b)
and (c) and make available

[Page: H1341]

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).

(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

[Page: H1342]

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;

(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;

(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.

[Page: H1343]

``(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

[Page: H1344]

awarded under subsection (c) in an amount equal to--

``(A) for fiscal year 2011, not less than $1 for each $10 of Federal
funds provided under the grant;

``(B) for fiscal year 2012, not less than $1 for each $7 of Federal
funds provided under the grant; and

``(C) for fiscal year 2013 and each subsequent fiscal year, not less
than $1 for each $3 of Federal funds provided under the grant.

``(2) *AUTHORITY TO REQUIRE STATE MATCH FOR FISCAL YEARS BEFORE
FISCAL YEAR 2011*.--For any fiscal year during the grant program under
this section before fiscal year 2011, the Secretary may determine the
extent to which there shall be required a non-Federal contribution from
a State receiving a grant under this section.

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

``(a) /In General/.--The National Coordinator may award competitive
grants to eligible entities for the establishment of programs for loans
to health care providers to conduct the activities described in
subsection (e).

``(b) /Eligible Entity Defined/.--For purposes of this subsection,
the term `eligible entity' means a State or Indian tribe (as defined in
the Indian Self-Determination and Education Assistance Act) that--

``(1) submits to the National Coordinator an application at such
time, in such manner, and containing such information as the National
Coordinator may require;

``(2) submits to the National Coordinator a strategic plan in
accordance with subsection (d) and provides to the National Coordinator
assurances that the entity will update such plan annually in accordance
with such subsection;

``(3) provides assurances to the National Coordinator that the
entity will establish a Loan Fund in accordance with subsection (c);

``(4) provides assurances to the National Coordinator that the
entity will not provide a loan from the Loan Fund to a health care
provider unless the provider agrees to--

``(A) submit reports on quality measures adopted by the Federal
Government (by not later than 90 days after the date on which such
measures are adopted), to--

``(i) the Administrator of the Centers for Medicare & Medicaid
Services (or his or her designee), in the case of an entity
participating in the Medicare program under title XVIII of the Social
Security Act or the Medicaid program under title XIX of such Act; or

``(ii) the Secretary in the case of other entities;

``(B) demonstrate to the satisfaction of the Secretary (through
criteria established by the Secretary) that any certified EHR technology
purchased, improved, or otherwise financially supported under a loan
under this section is used to exchange health information in a manner
that, in accordance with law and standards (as adopted under section
3004) applicable to the exchange of information, improves the quality of
health care, such as promoting care coordination; and

``(C) comply with such other requirements as the entity or the
Secretary may require;

``(D) include a plan on how health care providers involved intend to
maintain and support the certified EHR technology over time;

``(E) include a plan on how the health care providers involved
intend to maintain and support the certified EHR technology that would
be purchased with such loan, including the type of resources expected to
be involved and any such other information as the State or Indian Tribe,
respectively, may require; and

``(5) agrees to provide matching funds in accordance with subsection
(h).

``(c) /Establishment of Fund/.--For purposes of subsection (b)(3),
an eligible entity shall establish a certified EHR technology loan fund
(referred to in this subsection as a `Loan Fund') and comply with the
other requirements contained in this section. A grant to an eligible
entity under this section shall be deposited in the Loan Fund
established by the eligible entity. No funds authorized by other
provisions of this title to be used for other purposes specified in this
title shall be deposited in any Loan Fund.

``(d) /Strategic Plan/.--

``(1) *IN GENERAL*.--For purposes of subsection (b)(2), a strategic
plan of an eligible entity under this subsection shall identify the
intended uses of amounts available to the Loan Fund of such entity.

``(2) *CONTENTS*.--A strategic plan under paragraph (1), with
respect to a Loan Fund of an eligible entity, shall include for a year
the following:

``(A) A list of the projects to be assisted through the Loan Fund
during such year.

``(B) A description of the criteria and methods established for the
distribution of funds from the Loan Fund during the year.

``(C) A description of the financial status of the Loan Fund as of
the date of submission of the plan.

``(D) The short-term and long-term goals of the Loan Fund.

``(e) /Use of Funds/.--Amounts deposited in a Loan Fund, including
loan repayments and interest earned on such amounts, shall be used only
for awarding loans or loan guarantees, making reimbursements described
in subsection (g)(4)(A), or as a source of reserve and security for
leveraged loans, the proceeds of which are deposited in the Loan Fund
established under subsection (c). Loans under this section may be used
by a health care provider to--

``(1) facilitate the purchase of certified EHR technology;

``(2) enhance the utilization of certified EHR technology (which may
include costs associated with upgrading health information technology so
that it meets criteria necessary to be a certified EHR technology);

``(3) train personnel in the use of such technology; or

``(4) improve the secure electronic exchange of health information.

``(f) /Types of Assistance/.--Except as otherwise limited by
applicable State law, amounts deposited into a Loan Fund under this
section may only be used for the following:

``(1) To award loans that comply with the following:

``(A) The interest rate for each loan shall not exceed the market
interest rate.

``(B) The principal and interest payments on each loan shall
commence not later than 1 year after the date the loan was awarded, and
each loan shall be fully amortized not later than 10 years after the
date of the loan.

``(C) The Loan Fund shall be credited with all payments of principal
and interest on each loan awarded from the Loan Fund.

``(2) To guarantee, or purchase insurance for, a local obligation
(all of the proceeds of which finance a project eligible for assistance
under this subsection) if the guarantee or purchase would improve credit
market access or reduce the interest rate applicable to the obligation
involved.

``(3) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds issued by
the eligible entity if the proceeds of the sale of the bonds will be
deposited into the Loan Fund.

``(4) To earn interest on the amounts deposited into the Loan Fund.

``(5) To make reimbursements described in subsection (g)(4)(A).

``(g) /Administration of Loan Funds/.--

``(1) *COMBINED FINANCIAL ADMINISTRATION*.--An eligible entity may
(as a convenience and to avoid unnecessary administrative costs)
combine, in accordance with applicable State law, the financial
administration of a Loan Fund established under this subsection with the
financial administration of any other revolving fund established by the
entity if otherwise not prohibited by the law under which the Loan Fund
was established.

``(2) *COST OF ADMINISTERING FUND*.--Each eligible entity may
annually use not to exceed 4 percent of the funds provided to the entity
under a grant under this section to pay the reasonable costs of the
administration of the programs under this section, including the
recovery of reasonable costs expended to establish a Loan Fund which are
incurred after the date of the enactment of this title.

``(3) *GUIDANCE AND REGULATIONS*.--The National Coordinator shall
publish guidance and promulgate regulations as may be necessary to carry
out the provisions of this section, including--

``(A) provisions to ensure that each eligible entity commits and
expends funds allotted to the entity under this section as efficiently
as possible in accordance with this title and applicable State laws; and

``(B) guidance to prevent waste, fraud, and abuse.

``(4) *PRIVATE SECTOR CONTRIBUTIONS*.--

``(A) *IN GENERAL*.--A Loan Fund established under this section may
accept contributions from private sector entities, except that such
entities may not specify the recipient or recipients of any loan issued
under this subsection. An eligible entity may agree to reimburse a
private sector entity for any contribution made under this subparagraph,
except that the amount of such reimbursement may not be greater than the
principal amount of the contribution made.

``(B) *AVAILABILITY OF INFORMATION*.--An eligible entity shall make
publicly available the identity of, and amount contributed by, any
private sector entity under subparagraph (A) and may issue letters of
commendation or make other awards (that have no financial value) to any
such entity.

``(h) /Matching Requirements/.--

``(1) *IN GENERAL*.--The National Coordinator may not make a grant
under subsection (a) to an eligible entity unless the entity agrees to
make available (directly or through donations from public or private
entities) non-Federal contributions in cash to the costs of carrying out
the activities for which the grant is awarded in an amount equal to not
less than $1 for each $5 of Federal funds provided under the grant.

``(2) *DETERMINATION OF AMOUNT OF NON-FEDERAL CONTRIBUTION*.--In
determining the amount of non-Federal contributions that an eligible
entity has provided pursuant to subparagraph (A), the National
Coordinator may not include any amounts provided to the entity by the
Federal Government.

``(i) /Effective Date/.--The Secretary may not make an award under
this section prior to January 1, 2010.

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

``(a) /In General/.--The Secretary may award grants under this
section to carry out demonstration projects to develop academic
curricula integrating certified EHR technology in the clinical education
of health professionals. Such awards shall be made on a competitive
basis and pursuant to peer review.

``(b) /Eligibility/.--To be eligible to receive a grant under
subsection (a), an entity shall--

``(1) submit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may require;

``(2) submit to the Secretary a strategic plan for integrating
certified EHR technology in the clinical education of health
professionals to reduce medical errors, increase access to prevention,
reduce chronic diseases, and enhance health care quality;

``(3) be--

[Page: H1345]

``(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

[Page: H1346]

technical safeguards for use in carrying out the sections referred to in
subsection (a) and the security standards in subpart C of part 164 of
title 45, Code of Federal Regulations, including the use of standards
developed under section 3002(b)(2)(B)(vi) of the Public Health Service
Act, as added by section 13101 of this Act, as such provisions are in
effect as of the date before the enactment of this Act.

*SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.*

(a) /In General/.--A covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds, uses,
or discloses unsecured protected health information (as defined in
subsection (h)(1)) shall, in the case of a breach of such information
that is discovered by the covered entity, notify each individual whose
unsecured protected health information has been, or is reasonably
believed by the covered entity to have been, accessed, acquired, or
disclosed as a result of such breach.

(b) /Notification of Covered Entity by Business Associate/.--A
business associate of a covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds, uses,
or discloses unsecured protected health information shall, following the
discovery of a breach of such information, notify the covered entity of
such breach. Such notice shall include the identification of each
individual whose unsecured protected health information has been, or is
reasonably believed by the business associate to have been, accessed,
acquired, or disclosed during such breach.

(c) /Breaches Treated as Discovered/.--For purposes of this section,
a breach shall be treated as discovered by a covered entity or by a
business associate as of the first day on which such breach is known to
such entity or associate, respectively, (including any person, other
than the individual committing the breach, that is an employee, officer,
or other agent of such entity or associate, respectively) or should
reasonably have been known to such entity or associate (or person) to
have occurred.

(d) /Timeliness of Notification/.--

(1) *IN GENERAL*.--Subject to subsection (g), all notifications
required under this section shall be made without unreasonable delay and
in no case later than 60 calendar days after the discovery of a breach
by the covered entity involved (or business associate involved in the
case of a notification required under subsection (b)).

(2) *BURDEN OF PROOF*.--The covered entity involved (or business
associate involved in the case of a notification required under
subsection (b)), shall have the burden of demonstrating that all
notifications were made as required under this part, including evidence
demonstrating the necessity of any delay.

(e) /Methods of Notice/.--

(1) *INDIVIDUAL NOTICE*.--Notice required under this section to be
provided to an individual, with respect to a breach, shall be provided
promptly and in the following form:

(A) Written notification by first-class mail to the individual (or
the next of kin of the individual if the individual is deceased) at the
last known address of the individual or the next of kin, respectively,
or, if specified as a preference by the individual, by electronic mail.
The notification may be provided in one or more mailings as information
is available.

(B) In the case in which there is insufficient, or out-of-date
contact information (including a phone number, email address, or any
other form of appropriate communication) that precludes direct written
(or, if specified by the individual under subparagraph (A), electronic)
notification to the individual, a substitute form of notice shall be
provided, including, in the case that there are 10 or more individuals
for which there is insufficient or out-of-date contact information, a
conspicuous posting for a period determined by the Secretary on the home
page of the Web site of the covered entity involved or notice in major
print or broadcast media, including major media in geographic areas
where the individuals affected by the breach likely reside. Such a
notice in media or web posting will include a toll-free phone number
where an individual can learn whether or not the individual's unsecured
protected health information is possibly included in the breach.

(C) In any case deemed by the covered entity involved to require
urgency because of possible imminent misuse of unsecured protected
health information, the covered entity, in addition to notice provided
under subparagraph (A), may provide information to individuals by
telephone or other means, as appropriate.

(2) *MEDIA NOTICE*.--Notice shall be provided to prominent media
outlets serving a State or jurisdiction, following the discovery of a
breach described in subsection (a), if the unsecured protected health
information of more than 500 residents of such State or jurisdiction is,
or is reasonably believed to have been, accessed, acquired, or disclosed
during such breach.

(3) *NOTICE TO SECRETARY*.--Notice shall be provided to the
Secretary by covered entities of unsecured protected health information
that has been acquired or disclosed in a breach. If the breach was with
respect to 500 or more individuals than such notice must be provided
immediately. If the breach was with respect to less than 500
individuals, the covered entity may maintain a log of any such breach
occurring and annually submit such a log to the Secretary documenting
such breaches occurring during the year involved.

(4) *POSTING ON HHS PUBLIC WEBSITE*.--The Secretary shall make
available to the public on the Internet website of the Department of
Health and Human Services a list that identifies each covered entity
involved in a breach described in subsection (a) in which the unsecured
protected health information of more than 500 individuals is acquired or
disclosed.

(f) /Content of Notification/.--Regardless of the method by which
notice is provided to individuals under this section, notice of a breach
shall include, to the extent possible, the following:

(1) A brief description of what happened, including the date of the
breach and the date of the discovery of the breach, if known.

(2) A description of the types of unsecured protected health
information that were involved in the breach (such as full name, Social
Security number, date of birth, home address, account number, or
disability code).

(3) The steps individuals should take to protect themselves from
potential harm resulting from the breach.

(4) A brief description of what the covered entity involved is doing
to investigate the breach, to mitigate losses, and to protect against
any further breaches.

(5) Contact procedures for individuals to ask questions or learn
additional information, which shall include a toll-free telephone
number, an e-mail address, Web site, or postal address.

(g) /Delay of Notification Authorized for Law Enforcement
Purposes/.--If a law enforcement official determines that a
notification, notice, or posting required under this section would
impede a criminal investigation or cause damage to national security,
such notification, notice, or posting shall be delayed in the same
manner as provided under section 164.528(a)(2) of title 45, Code of
Federal Regulations, in the case of a disclosure covered under such section.

(h) /Unsecured Protected Health Information/.--

(1) *DEFINITION*.--

(A) *IN GENERAL*.--Subject to subparagraph (B), for purposes of this
section, the term ``unsecured protected health information'' means
protected health information that is not secured through the use of a
technology or methodology specified by the Secretary in the guidance
issued under paragraph (2).

(B) *EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED*.--In the case
that the Secretary does not issue guidance under paragraph (2) by the
date specified in such paragraph, for purposes of this section, the term
``unsecured protected health information'' shall mean protected health
information that is not secured by a technology standard that renders
protected health information unusable, unreadable, or indecipherable to
unauthorized individuals and is developed or endorsed by a standards
developing organization that is accredited by the American National
Standards Institute.

(2) *GUIDANCE*.--For purposes of paragraph (1) and section
13407(f)(3), not later than the date that is 60 days after the date of
the enactment of this Act, the Secretary shall, after consultation with
stakeholders, issue (and annually update) guidance specifying the
technologies and methodologies that render protected health information
unusable, unreadable, or indecipherable to unauthorized individuals,
including the use of standards developed under section 3002(b)(2)(B)(vi)
of the Public Health Service Act, as added by section 13101 of this Act.

(i) /Report to Congress on Breaches/.--

(1) *IN GENERAL*.--Not later than 12 months after the date of the
enactment of this Act and annually thereafter, the Secretary shall
prepare and submit to the Committee on Finance and the Committee on
Health, Education, Labor, and Pensions of the Senate and the Committee
on Ways and Means and the Committee on Energy and Commerce of the House
of Representatives a report containing the information described in
paragraph (2) regarding breaches for which notice was provided to the
Secretary under subsection (e)(3).

(2) *INFORMATION*.--The information described in this paragraph
regarding breaches specified in paragraph (1) shall include--

(A) the number and nature of such breaches; and

(B) actions taken in response to such breaches.

(j) /Regulations; Effective Date/.--To carry out this section, the
Secretary of Health and Human Services shall promulgate interim final
regulations by not later than the date that is 180 days after the date
of the enactment of this title. The provisions of this section shall
apply to breaches that are discovered on or after the date that is 30
days after the date of publication of such interim final regulations.

*SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.*

(a) /Regional Office Privacy Advisors/.--Not later than 6 months
after the date of the enactment of this Act, the Secretary shall
designate an individual in each regional office of the Department of
Health and Human Services to offer guidance and education to covered
entities, business associates, and individuals on their rights and
responsibilities related to Federal privacy and security requirements
for protected health information.

(b) /Education Initiative on Uses of Health Information/.--Not later
than 12 months after the date of the enactment of this Act, the Office
for Civil Rights within the Department of Health and Human Services
shall develop and maintain a multi-faceted national education initiative
to enhance public transparency regarding the uses of protected health
information, including programs to educate individuals about the
potential uses of their protected health information, the effects of
such uses, and the rights of individuals with respect to such uses. Such
programs shall be conducted in a variety of languages and present
information in a clear and understandable manner.

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

(a) /Application of Contract Requirements/.--In the case of a
business associate of a covered entity that obtains or creates protected
health information pursuant to a written contract (or other written
arrangement) described

[Page: H1347]

in section 164.502(e)(2) of title 45, Code of Federal Regulations, with
such covered entity, the business associate may use and disclose such
protected health information only if such use or disclosure,
respectively, is in compliance with each applicable requirement of
section 164.504(e) of such title. The additional requirements of this
subtitle that relate to privacy and that are made applicable with
respect to covered entities shall also be applicable to such a business
associate and shall be incorporated into the business associate
agreement between the business associate and the covered entity.

(b) /Application of Knowledge Elements Associated With
Contracts/.--Section 164.504(e)(1)(ii) of title 45, Code of Federal
Regulations, shall apply to a business associate described in subsection
(a), with respect to compliance with such subsection, in the same manner
that such section applies to a covered entity, with respect to
compliance with the standards in sections 164.502(e) and 164.504(e) of
such title, except that in applying such section 164.504(e)(1)(ii) each
reference to the business associate, with respect to a contract, shall
be treated as a reference to the covered entity involved in such contract.

(c) /Application of Civil and Criminal Penalties/.--In the case of a
business associate that violates any provision of subsection (a) or (b),
the provisions of sections 1176 and 1177 of the Social Security Act (42
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
respect to such violation in the same manner as such provisions apply to
a person who violates a provision of part C of title XI of such Act.

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

(a) /Requested Restrictions on Certain Disclosures of Health
Information/.--In the case that an individual requests under paragraph
(a)(1)(i)(A) of section 164.522 of title 45, Code of Federal
Regulations, that a covered entity restrict the disclosure of the
protected health information of the individual, notwithstanding
paragraph (a)(1)(ii) of such section, the covered entity must comply
with the requested restriction if--

(1) except as otherwise required by law, the disclosure is to a
health plan for purposes of carrying out payment or health care
operations (and is not for purposes of carrying out treatment); and

(2) the protected health information pertains solely to a health
care item or service for which the health care provider involved has
been paid out of pocket in full.

(b) /Disclosures Required To Be Limited to the Limited Data Set or
the Minimum Necessary/.--

(1) *IN GENERAL*.--

(A) *IN GENERAL*.--Subject to subparagraph (B), a covered entity
shall be treated as being in compliance with section 164.502(b)(1) of
title 45, Code of Federal Regulations, with respect to the use,
disclosure, or request of protected health information described in such
section, only if the covered entity limits such protected health
information, to the extent practicable, to the limited data set (as
defined in section 164.514(e)(2) of such title) or, if needed by such
entity, to the minimum necessary to accomplish the intended purpose of
such use, disclosure, or request, respectively.

(B) *GUIDANCE*.--Not later than 18 months after the date of the
enactment of this section, the Secretary shall issue guidance on what
constitutes ``minimum necessary'' for purposes of subpart E of part 164
of title 45, Code of Federal Regulation. In issuing such guidance the
Secretary shall take into consideration the guidance under section
13424(c) and the information necessary to improve patient outcomes and
to detect, prevent, and manage chronic disease.

(C) *SUNSET*.--Subparagraph (A) shall not apply on and after the
effective date on which the Secretary issues the guidance under
subparagraph (B).

(2) *DETERMINATION OF MINIMUM NECESSARY*.--For purposes of paragraph
(1), in the case of the disclosure of protected health information, the
covered entity or business associate disclosing such information shall
determine what constitutes the minimum necessary to accomplish the
intended purpose of such disclosure.

(3) *APPLICATION OF EXCEPTIONS*.--The exceptions described in
section 164.502(b)(2) of title 45, Code of Federal Regulations, shall
apply to the requirement under paragraph (1) as of the effective date
described in section 13423 in the same manner that such exceptions apply
to section 164.502(b)(1) of such title before such date.

(4) *RULE OF CONSTRUCTION*.--Nothing in this subsection shall be
construed as affecting the use, disclosure, or request of protected
health information that has been de-identified.

(c) /Accounting of Certain Protected Health Information Disclosures
Required if Covered Entity Uses Electronic Health Record/.--

``(1) *IN GENERAL*.--In applying section 164.528 of title 45, Code
of Federal Regulations, in the case that a covered entity uses or
maintains an electronic health record with respect to protected health
information--

``(A) the exception under paragraph (a)(1)(i) of such section shall
not apply to disclosures through an electronic health record made by
such entity of such information; and

``(B) an individual shall have a right to receive an accounting of
disclosures described in such paragraph of such information made by such
covered entity during only the three years prior to the date on which
the accounting is requested.

``(2) *REGULATIONS*.--The Secretary shall promulgate regulations on
what information shall be collected about each disclosure referred to in
paragraph (1), not later than 6 months after the date on which the
Secretary adopts standards on accounting for disclosure described in the
section 3002(b)(2)(B)(iv) of the Public Health Service Act, as added by
section 13101. Such regulations shall only require such information to
be collected through an electronic health record in a manner that takes
into account the interests of the individuals in learning the
circumstances under which their protected health information is being
disclosed and takes into account the administrative burden of accounting
for such disclosures.

``(3) *PROCESS*.--In response to an request from an individual for
an accounting, a covered entity shall elect to provide either an--

``(A) accounting, as specified under paragraph (1), for disclosures
of protected health information that are made by such covered entity and
by a business associate acting on behalf of the covered entity; or

``(B) accounting, as specified under paragraph (1), for disclosures
that are made by such covered entity and provide a list of all business
associates acting on behalf of the covered entity, including contact
information for such associates (such as mailing address, phone, and
email address).

A business associate included on a list under subparagraph (B) shall
provide an accounting of disclosures (as required under paragraph (1)
for a covered entity) made by the business associate upon a request made
by an individual directly to the business associate for such an accounting.

``(4) *EFFECTIVE DATE*.--

``(A) *CURRENT USERS OF ELECTRONIC RECORDS*.--In the case of a
covered entity insofar as it acquired an electronic health record as of
January 1, 2009, paragraph (1) shall apply to disclosures, with respect
to protected health information, made by the covered entity from such a
record on and after January 1, 2014.

``(B) *OTHERS*.--In the case of a covered entity insofar as it
acquires an electronic health record after January 1, 2009, paragraph
(1) shall apply to disclosures, with respect to protected health
information, made by the covered entity from such record on and after
the later of the following:

``(i) January 1, 2011; or

``(ii) the date that it acquires an electronic health record.

``(C) *LATER DATE*.--The Secretary may set an effective date that is
later that the date specified under subparagraph (A) or (B) if the
Secretary determines that such later date is necessary, but in no case
may the date specified under--

``(i) subparagraph (A) be later than 2016; or

``(ii) subparagraph (B) be later than 2013.''

(d) /Prohibition on Sale of Electronic Health Records or Protected
Health Information/.--

(1) *IN GENERAL*.--Except as provided in paragraph (2), a covered
entity or business associate shall not directly or indirectly receive
remuneration in exchange for any protected health information of an
individual unless the covered entity obtained from the individual, in
accordance with section 164.508 of title 45, Code of Federal
Regulations, a valid authorization that includes, in accordance with
such section, a specification of whether the protected health
information can be further exchanged for remuneration by the entity
receiving protected health information of that individual.

(2) *EXCEPTIONS*.--Paragraph (1) shall not apply in the following cases:

(A) The purpose of the exchange is for public health activities (as
described in section 164.512(b) of title 45, Code of Federal Regulations).

(B) The purpose of the exchange is for research (as described in
sections 164.501 and 164.512(i) of title 45, Code of Federal
Regulations) and the price charged reflects the costs of preparation and
transmittal of the data for such purpose.

(C) The purpose of the exchange is for the treatment of the
individual, subject to any regulation that the Secretary may promulgate
to prevent protected health information from inappropriate access, use,
or disclosure.

(D) The purpose of the exchange is the health care operation
specifically described in subparagraph (iv) of paragraph (6) of the
definition of healthcare operations in section 164.501 of title 45, Code
of Federal Regulations.

(E) The purpose of the exchange is for remuneration that is provided
by a covered entity to a business associate for activities involving the
exchange of protected health information that the business associate
undertakes on behalf of and at the specific request of the covered
entity pursuant to a business associate agreement.

(F) The purpose of the exchange is to provide an individual with a
copy of the individual's protected health information pursuant to
section 164.524 of title 45, Code of Federal Regulations.

(G) The purpose of the exchange is otherwise determined by the
Secretary in regulations to be similarly necessary and appropriate as
the exceptions provided in subparagraphs (A) through (F).

(3) *REGULATIONS*.--Not later than 18 months after the date of
enactment of this title, the Secretary shall promulgate regulations to
carry out this subsection. In promulgating such regulations, the Secretary--

(A) shall evaluate the impact of restricting the exception described
in paragraph (2)(A) to require that the price charged for the purposes
described in such paragraph reflects the costs of the preparation and
transmittal of the data for such purpose, on research or public health
activities, including those conducted by or for the use of the Food and
Drug Administration; and

(B) may further restrict the exception described in paragraph (2)(A)
to require that the price charged for the purposes described in such
paragraph reflects the costs of the preparation and transmittal of the
data for such purpose, if

[Page: H1348]

the Secretary finds that such further restriction will not impede such
research or public health activities.

(4) *EFFECTIVE DATE*.--Paragraph (1) shall apply to exchanges
occurring on or after the date that is 6 months after the date of the
promulgation of final regulations implementing this subsection.

(e) /Access to Certain Information in Electronic Format/.--In
applying section 164.524 of title 45, Code of Federal Regulations, in
the case that a covered entity uses or maintains an electronic health
record with respect to protected health information of an individual--

(1) the individual shall have a right to obtain from such covered
entity a copy of such information in an electronic format and, if the
individual chooses, to direct the covered entity to transmit such copy
directly to an entity or person designated by the individual, provided
that any such choice is clear, conspicuous, and specific; and

(2) notwithstanding paragraph (c)(4) of such section, any fee that
the covered entity may impose for providing such individual with a copy
of such information (or a summary or explanation of such information) if
such copy (or summary or explanation) is in an electronic form shall not
be greater than the entity's labor costs in responding to the request
for the copy (or summary or explanation).

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

(a) /Marketing/.--

(1) *IN GENERAL*.--A communication by a covered entity or business
associate that is about a product or service and that encourages
recipients of the communication to purchase or use the product or
service shall not be considered a health care operation for purposes of
subpart E of part 164 of title 45, Code of Federal Regulations, unless
the communication is made as described in subparagraph (i), (ii), or
(iii) of paragraph (1) of the definition of marketing in section 164.501
of such title.

(2) *PAYMENT FOR CERTAIN COMMUNICATIONS*.--A communication by a
covered entity or business associate that is described in subparagraph
(i), (ii), or (iii) of paragraph (1) of the definition of marketing in
section 164.501 of title 45, Code of Federal Regulations, shall not be
considered a health care operation for purposes of subpart E of part 164
of title 45, Code of Federal Regulations if the covered entity receives
or has received direct or indirect payment in exchange for making such
communication, except where--

(A)(i) such communication describes only a drug or biologic that is
currently being prescribed for the recipient of the communication; and

(ii) any payment received by such covered entity in exchange for
making a communication described in clause (i) is reasonable in amount;

(B) each of the following conditions apply--

(i) the communication is made by the covered entity; and

(ii) the covered entity making such communication obtains from the
recipient of the communication, in accordance with section 164.508 of
title 45, Code of Federal Regulations, a valid authorization (as
described in paragraph (b) of such section) with respect to such
communication; or

(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. 57/a/(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

[Page: H1349]

employee or other individual) shall be considered to have obtained or
disclosed individually identifiable health information in violation of
this part if the information is maintained by a covered entity (as
defined in the HIPAA privacy regulation described in section 1180(b)(3))
and the individual obtained or disclosed such information without
authorization.''.

*SEC. 13410. IMPROVED ENFORCEMENT.*

(a) /In General/.--

(1) *NONCOMPLIANCE DUE TO WILLFUL NEGLECT*.--Section 1176 of the
Social Security Act (42 U.S.C. 1320d-5) is amended--

(A) in subsection (b)(1), by striking ``the act constitutes an
offense punishable under section 1177'' and inserting ``a penalty has
been imposed under section 1177 with respect to such act''; and

(B) by adding at the end the following new subsection:

``(c) /Noncompliance Due to Willful Neglect/.--

``(1) *IN GENERAL*.--A violation of a provision of this part due to
willful neglect is a violation for which the Secretary is required to
impose a penalty under subsection (a)(1).

``(2) *REQUIRED INVESTIGATION*.--For purposes of paragraph (1), the
Secretary shall formally investigate any complaint of a violation of a
provision of this part if a preliminary investigation of the facts of
the complaint indicate such a possible violation due to willful neglect.''.

(2) *ENFORCEMENT UNDER SOCIAL SECURITY ACT*.--Any violation by a
covered entity under thus subtitle is subject to enforcement and
penalties under section 1176 and 1177 of the Social Security Act.

(b) /Effective Date; Regulations/.--

(1) The amendments made by subsection (a) shall apply to penalties
imposed on or after the date that is 24 months after the date of the
enactment of this title.

(2) Not later than 18 months after the date of the enactment of this
title, the Secretary of Health and Human Services shall promulgate
regulations to implement such amendments.

(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.

[Page: H1350]

``(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

(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 re

Text Of The Stimulus Bill - Jamie Dupree

Text Of The Stimulus Bill