E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 111 CONGRESS, FIRST SESSION

Vol. 155 WASHINGTON, FRIDAY, JANUARY 30, 2009 No. 19 House of Representatives The House was not in session today. Its next meeting will be held on Monday, February 2, 2009, at 2 p.m. Senate FRIDAY, JANUARY 30, 2009

The Senate met at 9:31 a.m. and was to the Senate from the President pro RESERVATION OF LEADER TIME called to order by the Honorable MARK tempore (Mr. BYRD). The ACTING PRESIDENT pro tem- R. WARNER, a Senator from the Com- The assistant legislative clerk read pore. Under the previous order, the monwealth of Virginia. the following letter: leadership time is reserved. U.S. SENATE, PRAYER PRESIDENT PRO TEMPORE, f Washington, DC, January 30, 2009. The Chaplain, Dr. Barry C. Black, of- MORNING BUSINESS fered the following prayer: To the Senate: Under the provisions of rule I, paragraph 3, The ACTING PRESIDENT pro tem- Let us pray. of the Standing Rules of the Senate, I hereby Eternal Spirit, our shelter in the pore. Under the previous order, the appoint the Honorable MARK R. WARNER, a Senate will proceed to a period for the time of storm, our rock in a weary Senator from the Commonwealth of Vir- land, Lord, we live in challenging ginia, to perform the duties of the Chair. transaction of morning business, with times that require more than human ROBERT C. BYRD, Senators permitted to speak for up to solutions for our problems. In the President pro tempore. 10 minutes each. midst of these days, help our law- Mr. WARNER thereupon assumed the Mr. REID. I suggest the absence of a makers to find in You a sure place to chair as Acting President pro tempore. quorum. stand and a strong support they can ab- The ACTING PRESIDENT pro tem- solutely trust. Lord, give them such f pore. The clerk will call the roll. faith in You that they will seek and The assistant legislative clerk pro- follow Your guidance, living lives that RECOGNITION OF THE MAJORITY ceeded to call the roll. honor Your Name. Rule in their hearts LEADER Mr. CORNYN. Mr. President, I ask as they deliberate so that Your higher The ACTING PRESIDENT pro tem- unanimous consent that the order for wisdom will prevail. Help them to re- pore. The majority leader is recog- the quorum call be rescinded. member that they must give an ac- nized. The ACTING PRESIDENT pro tem- count to You for how responsible they pore. Without objection, it is so or- are in carrying out their duties. f dered. We pray in Your strong Name. Amen. Mr. CORNYN. Mr. President, I also SCHEDULE ask unanimous consent to speak for as f much time as I may use in morning Mr. REID. Mr. President, we are business. PLEDGE OF ALLEGIANCE going to be in a period for the trans- The ACTING PRESIDENT pro tem- The Honorable MARK R. WARNER led action of morning business today. Sen- pore. Without objection, it is so or- the Pledge of Allegiance, as follows: ators will be allowed to speak for up to dered. 10 minutes each. There will be no roll- I pledge allegiance to the Flag of the The Senator from Texas is recog- United States of America, and to the Repub- call votes today, as we announced last nized. lic for which it stands, one nation under God, night. We will proceed to the consider- indivisible, with liberty and justice for all. ation of the American Recovery and In- f f vestment Act of 2009 on Monday. Under a previous agreement, the Senate will NOMINATION OF ERIC HOLDER APPOINTMENT OF ACTING debate and vote on the Holder nomina- Mr. CORNYN. Mr. President, on Mon- PRESIDENT PRO TEMPORE tion to be Attorney General of the day, the Senate will take up the nomi- The PRESIDING OFFICER. The United States. That will occur at 6:15 nation of Eric Holder to be the next At- clerk will please read a communication p.m. on Monday. torney General of the United States. I

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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Likewise, Osama bin Laden, voted that nomination out of the com- First, I would ask my colleagues to responsible for the deaths of thousands mittee, I was a ‘‘no’’ vote. consider Mr. Holder’s role in the FALN of innocent American citizens, would I wish to say that originally I ap- and Los Macheteros commutations. In not be linked to crime under the stand- proached this nomination with an open August 1999, President Clinton offered ard Mr. Holder posits. mind and a determination to ask—in- clemency to 16 members of two Puerto There is ample evidence that at least deed to demand—answers to legitimate Rican separatist terrorist organiza- some of the men for whom Eric Holder questions. I think that is the responsi- tions, FALN and Los Macheteros. Dep- recommended clemency were, in fact, bility of each Senator under the Con- uty Attorney General Eric Holder murderers. These commutations were, stitution in performing our duties of made the recommendation that he at the time, widely believed to have advice and consent. I also think it is should do so. The FALN was a clandes- some political motivation. Indeed, the important for me to explain why, even tine terrorist group devoted to bring- Clinton White House discussed how though I approached that nomination ing about the independence of Puerto these clemencies would affect then- with an open mind and a predisposition Rico through violent means. Its mem- Vice President Gore’s political stand- to vote for Mr. Holder’s nomination, I bers waged open war on the United ing within the Puerto Rican commu- ultimately concluded, as a result of States, with more than 150 bombings, nity. For this reason, I believe a full some of the evidence, which I will lay arsons, kidnappings, prison escapes, accounting of whom Mr. Holder met out, I could not do so in good con- threats and intimidation, which re- with, what they discussed, and what science. sulted in the deaths of at least six peo- went into his decision to recommend Mr. Holder, of course, served as Dep- ple and injuries to many more between these commutations is in order. uty Attorney General during the Clin- 1974 and 1983. But there is another equally impor- ton administration, and if there is any The most gruesome attack was in tant reason that these questions must public service that is more illustrative 1975 in lower Manhattan. Timed to ex- be answered. The victims of the FALN of how someone will actually perform plode during the lunch hour, the bomb and the Los Macheteros deserve an- as Attorney General, I think it would decapitated 1 of the 4 people killed and swers. I would encourage all my col- be in performing as Deputy Attorney injured another 60. In another attack leagues, before voting, to review the General. The Deputy Attorney General in Puerto Rico, Los Macheteros opened testimony of Joseph Connor, whose fa- is the one job on Earth most similar to fire on a bus of U.S. sailors. Two Amer- ther was killed in the bombing in lower the job for which Mr. Holder will be ican sailors were killed and nine were Manhattan in 1975. Mr. Connor testified confirmed on Monday. It is rare to wounded. Fortunately, much of the that Mr. Holder did not consult with have such a clear picture of the job a leadership and membership of these him, did not inform him or his family nominee will do if confirmed. Thus, I terrorist groups was captured and or other victims before recommending reviewed Mr. Holder’s record with brought to justice in the late 1970s and that the President set FALN terrorists great care, as you might expect, and early 1980s. By the late 1980s, the worst free. also with great interest. of the FALN’s reign of terror was over. I cannot vote for Mr. Holder until I Unfortunately, two of Mr. Holder’s In the early 1990s, sympathetic activ- can explain my vote to Joseph Connor. actions as Deputy Attorney General: ists petitioned for clemency on behalf Because Mr. Holder has failed to an- the recommendation that President of these terrorists, and it was an easy swer my questions about the FALN Clinton commute the sentences of 16 call for the pardon attorney. The par- commutations, I do not have an expla- Puerto Rican separatist terrorists and don attorney is the attorney at the De- nation I can give to Mr. Connor. the recommendation that President partment of Justice who reviews clem- One of the reasons Mr. Holder has re- Clinton pardon the billionaire fugitive ency requests and makes recommenda- fused to answer some questions is, it Marc Rich, raised serious questions tions. They make sure the record is appears he is invoking executive privi- about Mr. Holder’s judgment and inde- thoroughly reviewed and, as I said, lege. But it is very odd because this ap- pendence from the wishes of his polit- then make recommendations. The fact parent assertion of executive privilege ical sponsors—two key qualities I is these unrepentant terrorists who comes despite the fact that President would hope the Senate would want for were given clemency by the Clinton ad- Clinton waived executive privilege for any Attorney General, independence, ministration never even petitioned for all testimony concerning these adherence and fidelity only to the rule clemency. They never even asked for commutations. That is in the record of of law—and good judgment. it. the hearing before the Judiciary Com- Two other aspects of Mr. Holder’s Pardon attorney Margaret Love, who mittee. I think it is unfortunate that record also raised concerns for me. Mr. worked for then-Deputy Attorney Gen- the current administration’s first ap- Holder’s record demonstrates a failure eral Jamie Gorelick, recommended parent assertion of executive privilege to understand the profound threat against clemency for any of these pris- seems to come for no purpose other posed by radical Islamic terrorism; oners, and a recommendation was than to protect Mr. Holder’s record and, second, Mr. Holder has often ap- transmitted to the President. Shortly from scrutiny. peared to be hostile to the second thereafter, when Eric Holder became As I said, in 2001, President Clinton amendment, to the constitutional right Deputy Attorney General, he rescinded waived executive privilege with regard to keep and bear arms. that recommendation opposing clem- to the commutations and pardons he As I said, in the Judiciary Com- ency and recommended that President granted. In a letter to the House of mittee, Mr. Holder failed to answer my Clinton grant clemency to these unre- Representatives, President Clinton’s questions, regrettably, and the ques- pentant terrorists. lawyer explicitly stated President Clin- tions of my colleagues in a way that al- Strangely, Mr. Holder still stands be- ton ‘‘will interpose no executive privi- leviated these concerns. As I will ex- hind this recommendation, saying he lege objections to the testimony of his plain, I indeed found Mr. Holder’s an- considered it reasonable. But the rea- former staff concerning these pardons, swers to be nothing short of evasive in sons he gives are not persuasive. Mr. or to other pardons and commutations some key respects. Because I have Holder claims these men were not he granted.’’ doubts about Mr. Holder’s judgment linked to violence. That is false. These Nonetheless, Mr. Holder continues to and independence, I am opposing this men were active members of a terrorist assert he is not authorized to testify nomination, and the four reasons, as I organization that had committed doz- about the so-called options memo- tried earlier to summarize but which I ens of violent crimes, including, as I randum, which is part of the record un- will repeat are Mr. Holder’s role in the mentioned earlier, bombings, murder, derlying these commutations. Instead FALN and Los Macheteros and arson. It is true the particular of forthright answers about Mr. Hold- commutations, his role in the Marc crimes for which these individuals were er’s decision to recommend these

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00002 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.003 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1105 commutations or present the options Moreover, it is hard to imagine any forts included extradition requests and memo to then-President Clinton, he significant executive branch interest in attempts by U.S. marshals to arrest has repeatedly refused to answer ques- keeping this information secret. These him abroad. Rich refused to return to tions submitted by Judiciary Com- documents are a decade old and con- the United States, despite an offer by mittee members, including me. cern crimes committed about 30 years prosecutors to drop the racketeering For example, I asked Mr. Holder ago. President Clinton, of course, is no charges in exchange for his return. whether he was aware at the time he longer in office, and he has waived the In an effort to avoid his extradition, made his commutation recommenda- privilege. The context of these docu- though, Mr. Rich went so far as to re- tion of the leadership positions of three ments has been alluded to in U.S. nounce his U.S. citizenship, and he of these terrorists and their alleged in- major newspapers and even by Mr. tried to become a citizen of Bolivia. It volvement of another murder of a U.S. Holder himself. So it seems to me there is hard to imagine a more inappro- Navy sailor—more than one. Mr. Hold- is no further executive branch interest priate candidate for a pardon than a fu- er responded that this information in continuing to hide these documents, gitive from justice accused of trading ‘‘was included in [their] presentence re- only a desire to shield Mr. Holder from with the enemy. Mr. Rich’s own lawyer ports which in the ordinary course hard questions. told him he ‘‘spit on the American would be requested and reviewed by the In short, Mr. Holder’s responses to flag’’ by avoiding the jurisdiction of Office of Pardon Attorney as one of the questions regarding these commuta- U.S. courts. first investigative steps.’’ tions has been evasive. The Senate and According to those involved in the This answer, I have to say, is a very the American people deserve forthright pardon process, including President lawyerly answer, but it is nonrespon- answers to questions that pertain to Clinton and Marc Rich’s lawyer, Eric sive to my question. It avoids the ques- Mr. Holder’s judgment, his independ- Holder was more responsible for this tion of whether he was aware of these ence, his seriousness of mind when it controversial decision than any other matters when he recommended com- comes to the threat of Islamic extre- member of the Clinton administration mutation. In fact, Chairman LEAHY and mism, and his qualifications to be At- with the exception of the President Ranking Member SPECTER sent a letter torney General. to the Department of Justice citing I also believe the families of the vic- himself. President Clinton’s waiver of executive tims of the terrorist acts by the FALN In fact, on the last evening of the privilege and requesting the relevant and Los Macheteros terrorists deserve Clinton administration, White House documents regarding the clemency de- a full accounting for the release of ter- counsel called Mr. Holder to solicit his cision. This request, inexplicably, has rorists who were partly to blame for views on the Rich pardon application. been denied. their loved one’s deaths. Instead of pro- As Deputy Attorney General, Holder Because President Clinton has viding a forthright accounting, Mr. was effectively speaking for the entire waived this privilege, this assertion of Holder has simply dodged the question, Department of Justice during this cru- privilege is apparently now being made hidden behind an apparent claim of ex- cial phone call. by the present administration of Presi- ecutive privilege, and refused to co- Disregarding the strongly held views dent Obama. Of course, executive privi- operate with the Judiciary Committee of hundreds of Department of Justice lege only belongs to the principal, to in getting to the bottom of some of prosecutors and FBI agents who the client—in this case the Executive— these matters. worked nearly two decades to bring so it has to be either President Clinton The next concern I have has to do Marc Rich to justice, Mr. Holder told or President Obama, and clearly Presi- with the Rich pardon I alluded to at Nolan he was ‘‘neutral, leaning to fa- dent Clinton has waived it. the very beginning. Less than 2 years vorable.’’ The Justice Department has appar- after the controversy surrounding the What is crucial to understand is that ently advanced the argument that the FALN commutations, on the very last Mr. Holder was not just speaking for Clinton waiver applied only to testi- night of the Clinton administration, himself but the entire Department of mony and not to documents, but Mr. Mr. Holder made a very similar error of Justice. But with this recommendation Holder’s testimony about the options judgment when he recommended that from the Deputy Attorney General, paper is clearly testimony and not a President Clinton pardon the notorious President Clinton granted the Rich document. Thus, his assertion of privi- fugitive by the name of Marc Rich. At pardon, one of his last and most des- lege is indeed broader than the most the time, Mr. Rich was No. 6 on the picable actions. restrictive reading of the Clinton waiv- FBI’s Ten Most Wanted List. Even after having ample opportunity er. So who is denying the Holder au- In 1983, then-U.S. attorney Rudy to explain himself, it is unclear what thorization to testify about the options Giuliani in the Southern District of Mr. Holder’s rationale was for recom- paper? Apparently, I conclude, it could New York, obtained an indictment of mending this despicable pardon, as I only be President Obama. international commodities trader Marc said, which former FBI Director Louis Assertions of executive privilege, as Rich and his business partner, Pincus Freeh called a ‘‘corrupt act’’ on the we know, raise questions about the bal- Green. The indictment charged 65 part of President Clinton. ance of power between the executive counts of tax evasion, racketeering, branch and the legislative branch. The and trading with the enemy. Mr. Holder has admitted he made a Executive’s interest in secrecy and Specific charges include illegally mistake, which is commendable. But confidential communications, and trading with the Ayatollah Khomeini’s never in a full day of hearings and in Congress’s right to information, par- Iranian terrorist regime in violation of answers to several written questions ticularly in the context of a confirma- U.S. energy laws and a trade embargo did Mr. Holder offer a persuasive rea- tion hearing when performing our con- against Iran. son for supporting this pardon—other stitutional duty of advice and consent, Indeed, Mr. Rich made a fortune than, apparently, caving in to pressure are in tension and, in this case, con- trading with the Ayatollah’s regime at from the Clinton White House. Mr. flict. It is up to the branches to nego- the same time that 52 American dip- Holder defends himself by claiming he tiate and work together to take both lomats were still being held hostage in was naive; and, again, we have all made interests into account and to make the U.S. Embassy in Iran. Mr. Rich mistakes. I grant that. He now admits public relevant information that bears profited by trading with Cuba, Libya, the Rich pardon was a mistake and on the qualifications and experience of and South Africa during apartheid—all promises he will never make a similar members of the President’s Cabinet—in despite U.S. embargoes. Rather than mistake again. In fact, he takes the po- this instance, Mr. Holder. I believe face these charges head on, Mr. Rich sition he will be a better Attorney Gen- President Obama owes the American simply fled to Switzerland where he re- eral because of learning from this mis- people—consistent with his ideals on mained a fugitive for 17 years. Federal take. open government, which I enthusiasti- law enforcement, with help from the But this pledge is difficult to square cally support—to make his assertion of CIA, the NSA, and other agencies, ex- with the fact that Mr. Holder had es- privilege plainly and in the light of pended substantial resources in an ef- sentially made the same error in judg- day. fort to apprehend Mr. Rich. These ef- ment less than 2 years before with the

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00003 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.004 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1106 CONGRESSIONAL RECORD — SENATE January 30, 2009 FALN commutation. I am also con- I find it especially troubling that Mr. Those were essentially the same ar- cerned that Mr. Holder’s testimony re- Holder’s legal views on national secu- guments the Bush administration made garding key conversations and meet- rity have seemed to shift, depending with regard to Guantanamo Bay with ings on the Rich pardon seem to con- upon the political mood of the day and regard to holding enemy combatants tradict the recollections of members of the audience to whom he is speaking. who wear no uniform, who do not obey the Marc Rich legal and lobbying team. Shortly after the terrorist attacks of the laws of war, and are not citizens of In the fall of 2000, there was an e- 9/11, Mr. Holder voiced support for the a state, a nation state, but, in fact, are mail from former White House Counsel Bush administration’s interpretation a terrorist organization bent on killing Jack Quinn—who was representing of the status of terrorist detainees. Mr. innocent civilians here and abroad in Rich in his quest for a pardon—to the Holder said, in January 2002, that al- an effort to pursue their ideology. rest of the Rich legal team indicating Qaida terrorists: Since then, however, these argu- Mr. Rich told Mr. Quinn to ‘‘go . . . are not, in fact, people entitled to the ments have been heavily criticized, as straight to the White House.’’ protection of the Geneva Convention. They we know, by human rights activists This suggests that Holder was telling are not prisoners of war. and leading Democrats and, Quinn to bypass the typical pardon He went on to endorse indefinite de- inexplicably to me, Mr. Holder himself. process through the Department of tention of terrorist prisoners at Guan- He said in June of 2008: Justice, where opponents of the Rich tanamo Bay and argued that such pris- We must close our detention center at pardon were legion. Mr. Holder dis- oners should not be afforded Geneva Guantanamo Bay. putes this interpretation, arguing that Conventions protections so that they He said that in a speech to the Amer- an application sent to the White House could, in fact, be interrogated to pro- ican Constitution Society. He said: would be forwarded to the Department vide actionable intelligence. A great nation should not detain people, of Justice in any case. Whether this is He did insist, as did the Bush admin- military or civilian, in dark places beyond true, it is indisputable that the pros- istration at the time, that these de- the reach of law. Guantanamo Bay is an ecutors in the Southern District of tainees should be treated humanely, international embarrassment. New York who indicted Marc Rich for though. But more recently, as the po- Holder added he never thought he the crimes I mentioned earlier—they litical winds have shifted, Mr. Holder would see the day when the ‘‘Supreme were never asked about their views on has chastised the Bush administration Court would have to order the Presi- the Rich pardon, as they would have for policies he now seems to believe dent of the United States to treat de- been if the normal pardon process had defy the law. tainees in accordance with the Geneva been followed at the Department of There is a disturbing Jekyll-and- Convention.’’ Justice. Hyde quality to Mr. Holder’s legal pro- These sharply contrasting legal con- If Mr. Holder advised the Rich pardon nouncements concerning our counter- clusions were made, again inexplicably team on strategic matters, it would be terrorism policies. I wish to quote from by one and the same person, Eric Hold- a serious violation of his duties as the an Associated Press article entitled er, the nominee for the highest law en- second highest law enforcement officer ‘‘Obama AG pick defended Guantanamo forcement officer in the United States. in the land. Such aid would be particu- policy,’’ dated November 22, 2008. I ask One can only wonder what he truly be- larly disappointing because a House unanimous consent that this article be lieves. committee had specifically rep- printed in the RECORD following my re- In a 2008 speech to the liberal Amer- rimanded Mr. Holder for improperly marks. ican Constitution Society, he attacked aiding and facilitating the clemency The ACTING PRESIDENT pro tem- many of the same legal positions he application of the FALN terrorists 2 pore. Without objection, it is so or- once held as ‘‘making a mockery of the years earlier. It is not disputed, dered. rule of law.’’ though, that the Rich pardon applica- (See exhibit 1.) In that same speech, Holder called tion was fast-tracked and sheltered Mr. CORNYN. Asked whether ter- for a ‘‘reckoning’’ over the Bush ad- from its many opponents. rorism suspects could be held forever, ministration’s ‘‘unlawful practices in It is clear to me that Mr. Holder Holder responded: the war on terror.’’ played a role in clearing the way for It seems to me that you can think of these He also accused the Bush administra- this pardon and, at a minimum, he people as combatants and we are in the mid- tion of ‘‘act[ing] in direct defiance of knew it had not been appropriately dle of a war. Federal law’’ and railed against coun- handled through the Department of Holder said in a CNN interview in terterrorism policies that he claimed Justice pardon process. January 2002: ‘‘violate international law and the Nevertheless, he declared himself as United States Constitution.’’ ‘‘neutral, leaning favorable’’ when the And it seems to me that you could prob- In this way, Mr. Holder appears to ably say, looking at precedent, that you are White House asked him about his opin- going to detain these people until the war is have already publicly prejudged a po- ion. over, if that is ultimately what we wanted to tential prosecutorial question that In summary, Mr. Holder appears once do. may come before him as Attorney Gen- again to simply have given President Just weeks later, Holder told CNN he eral, without knowing all the facts. Clinton the answer he wanted. The did not believe al-Qaida suspects quali- Now, it is one thing to change your Rich pardon recommendation is the fied as prisoners of war under the Gene- mind, but it is quite different to most recent major action by Mr. Hold- va Conventions. change your mind and then attack the er as a public official. I believe the evi- very same position you once held as One of the things that we clearly want to dence casts doubt on his independence do with these prisoners is to have an ability one that could only be held in bad and his judgment once again. to interrogate them and find out what their faith, describing it as ‘‘making a mock- My greatest concerns, however, are future plans might be, where other cells are ery of the rule of law.’’ that Mr. Holder fails to fully under- located. Under the Geneva Convention, you I can only conclude that as an act of stand the unique challenges and are really limited to the amount of informa- pure cynicism, somebody who tells threats posed to our country by radical tion that you can elicit from people. you, particularly a lawyer who takes a Islamic terrorism. I want to explain Holder said it was important to treat legal position he once embraced, as why I say that. I agree with Mr. Holder detainees humanely, but he said they: now only being able to be held in bad when he says the most important duty . . . are not, in fact, people entitled to the faith, is a person who has made a bad- of the Attorney General is to protect protection of the Geneva Convention. They faith legal argument at least once. America from another terrorist attack. are not prisoners of war. The recent terrorist attacks in India, But his public statements regarding He also downplayed criticism that in Mumbai, have reminded Americans the war on terror too often betray a prisoners were being mistreated. of the possibility of further attacks on willingness to advance ideological Those in Europe and other places who are U.S. soil or literally anywhere around rhetoric without fully appreciating the concerned about the treatment of al-Qaida the world. On November 26, last year, sensitivity and the complexity of this members should come to Camp X-ray and see Mumbai, as we know, was ravaged by a issue. how people are, in fact, being treated. gang of terrorists. One of the attackers

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00004 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.005 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1107 was captured while the rest were ions with the political winds, he will do when he is so clearly opposed to the de- killed. his very best to uphold the rule of law cision in the Heller case. I believe his More than 170 individuals died as a and the Constitution of the United hostility to the second amendment result of bombings and gunfire, includ- States while protecting the American could lead the Department of Justice ing 6 Americans. If a U.S. city was tar- people by making sure we are protected to take opposing positions to narrow geted in the same way Mumbai was, or within the limits of our law from fu- that Supreme Court decision, particu- worse, biological, chemical, other even ture attacks. larly in court. nuclear weapons being used, it is crit- The final issue I wish to mention is Holder’s Heller brief was directly at ical that we be able to obtain the intel- my concern about Mr. Holder’s adher- odds with the Court’s opinion, as we ligence from captured terrorists in ence to the Supreme Court ruling in have seen. Can we expect him to vigor- order to assess whether any other im- the District of Columbia v. Heller, ously enforce and protect the constitu- minent attacks are in the works. which interpreted an individual’s right tional right to bear arms, a right with If we captured the terrorist in an on- to keep and bear arms. which he personally and strenuously going attack on an American city, it is That case reversed the District of Co- disagrees? critically important that we not treat lumbia’s position that said individuals Let me say, in conclusion, the Sen- him as an ordinary criminal, with all could not own firearms in their homes ate’s advice and consent function re- the rights conferred by the Constitu- to protect their family and their pos- quires us to carefully review a nomi- tion on an American citizen. That, I sessions. I believe this is an important nee’s career, to ask hard questions, and believe, is one of the most important victory for the second amendment that to insist on satisfactory answers. I lessons we must recall and never forget must be protected and preserved. take this duty seriously, as I know all from the tragedy of 9/11. To do so would As the Nation’s chief law enforce- my colleagues do. With this nominee, I effectively shut down the intelligence- ment officer, the Attorney General conclude that there are simply too gathering process and risk American steers Federal gun law policy. The next many questions to which I have not yet lives. Attorney General’s views will shape heard a satisfactory answer. When this sort of unpredictable legal not only law enforcement and prosecu- Why would he recommend clemency challenge arises in the war on ter- tion priorities with regard to these for unrepentant terrorists? rorism, I wish to know whether the issues but also the positions the De- Why would he recommend a pardon Eric Holder of 2002 or the Eric Holder partment of Justice takes in court. The for a fugitive who made billions trad- of 2008 will be calling the shots. I was views of the Justice Department will ing with America’s enemies? Did Mr. not encouraged by Mr. Holder’s refusal always be given considerable weight Holder know one of the men whose to say he would authorize aggressive during the early stages of the law’s de- clemency he recommended was linked interrogation against terrorists, even if velopment post-Heller. to the murder of a U.S. sailor and, if he knew that to do so would prevent a It is crucial the next Attorney Gen- so, did he communicate this to the major attack on an American city. eral fully appreciate that an individ- White House? Why did Mr. Holder con- I also fear his recommendation for ual’s right to keep and bear arms is a sult with Mr. Rich’s prosecutors before and continued endorsement of the fundamental freedom protected by our recommending a pardon? Why is Presi- FALN terrorist commutations is evi- Constitution. I was not comforted by dent Obama asserting executive privi- dence of a failure to appreciate the Mr. Holder’s vague assurance that Hell- lege to prevent Mr. Holder from testi- continuing dangers of terrorism. At his er now is the law of the land because it fying about these commutations? Was confirmation hearing, Mr. Holder at- cannot be reconciled with his long Mr. Holder’s judgment in the Rich and tempted to defend his poor judgment record of hostility to second amend- FLAN clemency decisions influenced on the terrorist clemency issue by not- ment rights. by the outcome that he believed Presi- ing these commutations occurred long Through his service as Deputy Attor- dent Clinton wanted so badly? How can before 9/11. ney General and continuing to private I explain to Joseph Connor, whose fa- But as I reminded him, the FALN practice, Mr. Holder has opposed the ther was killed in the 1975 bombing in clemencies came after the first World individual right to keep and bear arms. lower Manhattan, that the man who Trade Center bombing of 1993, and the As Deputy Attorney General, he advo- never spoke to his family before cham- al-Qaida attacks on U.S. embassies in cated for a wide variety of Federal gun pioning clemency for the men respon- Kenya and Tanzania in 1998. As Senator restrictions. Mr. Holder’s fierce hos- sible for his father’s murder will be the COBURN rightly pointed out, his clem- tility to gun rights continued after, as next Attorney General of the United ency recommendation came in the I say, his tenure as Deputy Attorney States? wake of the 1995 Oklahoma City bomb- General. Does Mr. Holder appreciate the grav- ing right here on our own soil, the Mr. Holder feels so strongly about his ity of the threats and the complexity most horrific domestic terror attack opposition to gun rights that he, along of the legal issues posed by the war on that has ever occurred in our country. with his former boss, the former Attor- terror? Can Mr. Holder be counted on So I worry that Mr. Holder is not pre- ney General Janet Reno, filed a brief to support and defend the constitu- pared to lead the Department of Jus- with the Supreme Court in the Heller tional right to keep and bear arms? tice at a moment when this Nation is case and argued against the individual I can’t answer these questions with waging an asymmetric war whose bat- rights approach to the second amend- any degree of certainty. I regret to say tlefield extends across the globe and ment and in favor of the view that the I will vote against the nomination of even onto U.S. soil. second amendment protects only mili- Eric Holder to be the next Attorney If confirmed as the next Attorney tia activities. General. General, Mr. Holder will inherit a com- The Holder-Reno brief argued: EXHIBIT 1 plex legal architecture constructed to The Second Amendment does not protect OBAMA AG PICK DEFENDED GUANTANAMO prevent terrorist attacks here in Amer- firearms possession or use that is unrelated POLICY) to participation in a well-regulated militia. ica and against our allies. That has ad- (By Matt Apuzzo) mittedly been controversial. But I do Although the individual rights ap- WASHINGTON. Nov. 22, 2008—President-elect not think anyone can question its ef- proach prevailed in the Supreme Court Barack Obama’s choice to become the next fectiveness given the fact that we have and in the D.C. Circuit, Holder’s brief attorney general, Eric Holder, once defended not had another terrorist attack on our described that approach as ‘‘unwise’’ the Bush administration’s arguments for own soil since 9/11. and ‘‘unjustified.’’ The Holder-Reno holding detainees at Guantanamo Bay, a po- If Mr. Holder is confirmed, I hope he brief goes on to argue that, even if the sition that runs counter to his more recent will study these issues and treat them second amendment protects an indi- comments—and to a signature policy of the more carefully and with greater delib- incoming administration. vidual right, that right should be nar- Holder, a confidant to Obama on legal eration and greater soundness of judg- rowly construed. issues, recently has been a leading voice in ment than he has demonstrated by his I worry it will be impossible for Mr. the chorus calling to close Guantanamo Bay, conflicting positions in 2002 and 2008. I Holder to vigorously protect the second which he has described as an international hope that rather than shifting his opin- amendment rights of all Americans embarrassment. Likewise, Obama has called

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00005 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.006 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1108 CONGRESSIONAL RECORD — SENATE January 30, 2009 it a ‘‘sad chapter in American history,’’ ‘‘I will be responsible for the vision that or more, rose to 2.6 million in Decem- pledged to close the island prison and criti- this team carries out,’’ Obama said, ‘‘and I ber of 2008. So there are a number of cized the Bush administration for arguing will expect them to implement that vision steps we need to take as a government, that terrorism suspects aren’t covered by once decisions are made.’’ and we have been taking them. standards set by the Geneva Conventions. Mr. CORNYN. I yield the floor and But in the months after the Sept. 11, 2001, At a hearing this week, where the terror attacks, Holder defended the Bush ad- suggest the absence of a quorum. Presiding Officer and I are both mem- ministration’s policies at Guantanamo. The ACTING PRESIDENT pro tem- bers of the Budget Committee—and we Asked whether terrorism suspects could be pore. The clerk will call the roll. probably agree those hearings were ex- held forever, Holder responded: ‘‘It seems to The legislative clerk proceeded to cellent—Douglas Elmendorf, Director me you can think of these people as combat- call the roll. of the Congressional Budget Office, re- ants and we are in the middle of a war,’’ Mr. ALEXANDER. I ask unanimous minded us of the steps the Government Holder said in a CNN interview in January consent that the order for the quorum is already taking. The Federal Reserve 2002. ‘‘And it seems to me that you could probably say, looking at precedent, that you call be rescinded. negotiated the sale of Bear Sterns to are going to detain these people until war is The ACTING PRESIDENT pro tem- JPMorgan Chase, $29 billion, to form a over, if that is ultimately what we wanted to pore. Without objection, it is so or- new limited liability company. Fannie do.’’ dered. Mae and Freddie Mac, the agencies Just weeks later, Holder told CNN he f that guaranteed half the home loans in didn’t believe al-Qaida suspects qualified as the country, were taken over by their prisoners of war under the Geneva Conven- ECONOMIC STIMULUS regulator and the Treasury put up $100 tions. ‘‘One of the things we clearly want to do Mr. ALEXANDER. Mr. President, billion to stabilize that situation. The with these prisoners is to have an ability to next week the Senate begins the debate Federal Reserve extended $60 billion in interrogate them and find out what their fu- of the so-called stimulus package. I a line of credit to the American Inter- ture plans might be, where other cells are lo- wish to talk about that for a few min- national Group, the insurance company cated,’’ said Holder, the former deputy attor- utes. It is $1.2 trillion of borrowed tax- called AIG. We had a debate in October ney general during the Clinton administra- payer money to be spent in an effort to where on both sides of the aisle, two- tion. ‘‘Under the Geneva Convention, you are help get our economy restarted. Here is thirds of Republicans as well as many really limited in the amount of information Democrats voted to give the Secretary that you can elicit from people.’’ my position on it, and I believe the po- Holder said it was important to treat de- sition of most Republicans and of some of the Treasury $700 billion to invest in tainees humanely. But he said they ‘‘are not, Democrats. We believe that in order for troubled assets or to use in a variety of in fact, people entitled to the protection of the stimulus to be effective, it should ways to try to keep our economy from the Geneva Convention. They are not pris- be reoriented on housing. First, fix the going straight down. It has gone down, oners of war.’’ He also downplayed criticism real problem: housing. If housing is re- but it didn’t go straight down; we be- that prisoners were being mistreated. started, if home values are stabilized, lieve this is partly because of the ac- ‘‘Those in Europe and other places who are tion the Congress and the President concerned about the treatment of al-Qaida and if people are buying homes, that will do more to help restart the econ- took at that time. members should come to Camp X-ray and see What we had was, in effect, a wreck how the people are, in fact, being treated,’’ omy than anything else. Second, we he said. should let people keep more of their on the highway. There is an old Roy Those were essentially the arguments of own money. A true stimulus is perma- Acuff song by that title. I think that is the Bush administration. Since then, those nent tax relief. If people have more of the best way to explain what was hap- arguments have been criticized by human their own money in their pockets, they pening. It was like a wreck on the rights groups, leading Democrats, and Holder interstate outside Knoxville and sud- himself. will have more confidence. They will be able to buy more. After reorienting to- denly traffic is backed up all the way ‘‘We must close our detention center in to Lenoir City or even Kingston. One Guantanamo Bay,’’ Holder told the Amer- ward housing, that will also help re- ican Constitution Society this summer. ‘‘A start the economy. lane was the money for the bank loan, great nation should not detain people, mili- Since we are borrowing so much of the next lane was the money for your tary or civilian, in dark places beyond the this money, especially, we believe it auto loan, and the next lane was for reach of law. Guantanamo Bay is an inter- ought to be oriented directly toward meeting payroll. As long as that wreck national embarrassment.’’ those items that would specifically cre- was on the highway, none of the money Holder added that he never thought he’d could get where it needed to go, and ate jobs now. It should not go toward see the day where the ‘‘Supreme Court would nobody could borrow on anything. It is good sounding ideas such as Head Start have to order the President of the United better today than it would have been, States to treat detainees in accordance with and Pell grants for college students but we still have a deeply serious prob- the Geneva Convention.’’ that we may want to take up later, Those comments are in line with Obama’s lem. maybe as early as the following week, The law we passed in October tempo- views. Holder did not return e-mail and tele- in a regular appropriations bill. So phone messages seeking comment about his rarily raised the insurance for deposits earlier interviews. Brooke Anderson, a that is our belief: reorient the stimulus from $100,000 to $250,000. Steps were spokeswoman in Obama’s transition office, toward housing, let people keep more taken to guarantee money market restated Obama’s commitment to opposing of their own money, and get the stuff funds. The Treasury, Federal Reserve, torture. out of the bill that has nothing to do and Federal Deposit Insurance Cor- ‘‘Eric Holder shares that view,’’ she said. with creating jobs now, in the next few ‘‘The president-elect has complete con- poration announced agreements with months or in the first year. Citibank and Bank of America. They fidence that Eric Holder will be an attorney We know Americans are hurting. general who will restore respect for the rule created a liquidity program for the of law and for our international commit- Every single Senator knows that. Our banking system. ments.’’ country’s economic turmoil is hitting The Federal Government, in all of its Obama’s advisers are crafting plans to every family where it matters, in the variety of agencies, has been very busy close Guantanamo Bay, release some detain- family budgets. More than 860,000 prop- since October using taxpayer dollars, ees and bring others to the United States to erties were repossessed by lenders in where necessary, or the Federal Re- face trial. One unanswered question, how- 2008, more than double the 2007 level. serve balance sheet, or Federal Deposit ever, is what to do with detainees who could Manufacturing is at a 28-year low. Ten- not be prosecuted in criminal courts without Insurance Corporation funds collected jeopardizing national security. nessee is a State that relies heavily on from banks to try to create a situation The Justice Department under Holder al- manufacturing. The unemployment in which our economy can restart. most certainly would help answer that ques- rate is 7.2 percent, too high. It has been We know, having visited with Presi- tion. higher. I can remember at a time when dent Obama and his team of advisers, In introducing Holder and other members I was Governor of Tennessee in 1982, that they are thinking of even more of his national security team, Obama said he the unemployment rate was 12 percent, things we may need to do. But next welcomed differences of opinion. ‘‘I assembled this team because I am a but 7.2 percent is too high. There were week in the Senate we will be talking strong believer in strong personalities and 1.9 million jobs lost in the last 4 about whether it is a good idea to bor- strong opinions,’’ he said. ‘‘I think that’s months of 2008. The long-term unem- row $1.2 trillion and spend it as the Ap- how the best decisions are made. ployed, people out of work for 27 weeks propriations and Finance Committees

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00006 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.002 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1109 have recommended we spend it as a on the people of Tennessee for 2 years I think it is important to understand way of trying to restart the economy. to raise that same amount of money. exactly what the debt we have is. USA What I am here today to say is: we be- There would be a revolution in Ten- Today did a story last year that talked lieve there ought to be a stimulus, but nessee if we did this. That is the about each family’s share of Govern- we believe it ought to be reoriented to- amount of money we’re talking about. ment debt and Government obliga- ward housing, that it ought to be reori- We are not talking about giving the tions. By ‘‘obligations,’’ I mean what ented toward permanent tax cuts, and State of Tennessee $40 million or $4 we owe for programs such as Medicare, that we ought to take out of this so- million or $400 million. Its shortfall what we owe for Medicaid, what we owe called stimulus anything that doesn’t this year is $900 million, which is the veterans. It is real money. It is money stimulate jobs now. worst it has ever had. We are talking we are obligated to pay. It comes down Let me try to give an idea of how about shipping $4 billion of borrowed to more than $500,000 per family a year. much money $1.2 trillion is. It is more taxpayer money to Tennessee. My So I think the way to talk about this money than we spent on the Vietnam point is, that is a lot of money. stimulus package is: Should we ask war in today’s dollars. This comes from There is another aspect to this every American family to increase an article in Politico this week. It is amount of money. I listed a number of their $531,000 debt in order to spend more money than we spent on the inva- things that the Federal Reserve Board money for a stimulus package to try to sion of Iraq. It is more money than we and the Congress have done to try to restart the economy? I believe we spent on the entire New Deal in today’s create a better economic situation, to should increase our debt for some pur- dollars, and a lot more money than we get housing going, to help stabilize poses, such as restarting housing or spent on the Marshall plan. It is nearly banks, and even to deal with auto- permanent tax cuts—that actually al- as much money as we’ve spent on mobile companies. Almost all of those lows people to keep their own money. NASA ever since it started. It is a lot dollars we used either came from the Or possibly increase our debt for pro- more money than we spent going to the Federal Reserve Board, which is not grams that would, perhaps, actually do Moon. This is a lot of money. We throw part of the Federal budget, not part of things in the next 6 months or 12 dollars around up here. Years ago Sen- taxpayer dollars, or it was an invest- months to stimulate the economy. ator Dirksen said: A billion here, a bil- ment. There are roads, and bridges, and na- In Tennessee, people don’t like the lion there, sooner or later it adds up to tional park maintenance that could word ‘‘bailout.’’ It has come to be right real money. This is a trillion, a number happen right now that would create up there with the top number. I voted that is hard for us to imagine. It is bor- jobs that would be genuinely stimula- twice, because I thought our country rowed money, which I will get to in a tive. But that is a very severe test we needed it, first to give President Bush, moment. should ask the American people. Let me give one example of how I then to give President Obama the Mr. President, I ask unanimous con- amount of money he needed to actually have been trying to describe how much sent that the USA Today article detail- invest in banks or nonfinance compa- money $1.2 trillion is. The Presiding ing the obligation every American fam- nies so we could get the credit moving Officer was Governor of Virginia. I was ily owes be printed in the RECORD fol- again. But in that case, we were invest- Governor of Tennessee. I looked around lowing my remarks. the Budget Committee the other day ing dollars. We were not spending dol- The ACTING PRESIDENT pro tem- and almost every member there had lars. We hope and believe that we will pore. Without objection, it is so or- been in State government in one way get almost all of those dollars back for dered. or another. In other words, we used to the taxpayer. When those dollars are (See exhibit 1.) deal with real dollars. We couldn’t put in a bank, for example, they pay 5 Mr. ALEXANDER. Now, there is an- print anything. At the end of the year, percent or 8 percent or even 10 percent other problem of running up too much we had to balance our budgets. Some- interest, in some cases, back to the debt. At the hearing where the Acting times we had to veto $25,000 programs taxpayer. Maybe we will lose some of President pro tempore, the Senator for epilepsy. I had to do that in 1981, that money, but we don’t intend to. It from Virginia, and I were at earlier 1982, and 1983, when we had an eco- is not our goal. That is the purpose of this week, I asked a question of the nomic turndown. That is why this it, investment. In this case, this is three witnesses: What can we learn amount of money is hard for me to get money gone. from the rest of the world about how This is borrowed taxpayer dollars, my arms around. I think it is hard for much debt is too much debt for the more than $1.2 trillion. I get to $1.2 most Americans. United States of America? The general trillion because the Senate bill is $900 Let me give you an idea about how answer was, today our debt is measured billion, and the interest over the next much money it is. The previous Gov- at about 40 percent of our annual gross 10 years is another $300 billion. That is ernor of Tennessee, one who came after domestic product. The estimates they the real cost of the stimulus package me, Governor Sundquist, thought we gave suggested if the stimulus pack- over the next 10 years. It is borrowed needed a State income tax. He rec- ages and if the other things that are money. ommended Tennessee should have a Let me go to the borrowed money going on continue to happen, we will be State income tax. It was about 4 per- part. up to 60 or 70 percent of GDP. If the en- cent. It would have raised about $400 We print money in Washington. We titlement growth—the automatic million a year. There was never a more Governors cannot. That is one of the spending we have in the Government unpopular act in our State than the adjustments you make when you come from Social Security, Medicare, and Governor Sundquist proposal that we here. It just takes a little while to do, Medicaid—keeps growing, and we keep have a State income tax. Many people and I understand the difference. The adding at the rate we are doing, we will said he was courageous for recom- truth is, there is a reasonable level of soon be at 100 percent of GDP. In other mending it, but it was rejected. People debt a strong industrial country such words, every year, government debt wouldn’t even invite him to dinner for as the United States can tolerate and could equal everything we produced in a few months. I would, but many other still continue to grow. As the country this great country of ours—which pro- people wouldn’t. That was $400 million grows, the debt reduces as a percentage duces 25 percent of all the wealth in a year. The State of Tennessee will re- of our output. the world every single year. We forget ceive almost $4 billion of this money. I While it might be important for the how fortunate we are. Twenty-five per- am sure it will make life easier for the State of Tennessee, as we always did, cent of all the wealth in the world, current Governor and the current legis- to balance our budget and almost never every single year, is produced in the lature, but think about that. The State have any debt—and we did not even United States of America and distrib- only collects close to $12 billion a year have an income tax—the Federal Gov- uted among just 5 percent of the people in State tax dollars, and it is going to ernment structure is different. I recog- in the world, which is us, those of us get $4 billion over the next 2 years nize that. But there is some reasonable who live here. So we would have to from this so-called stimulus package. limit to the amount of debt we should take all that production for a whole This would be the equivalent of impos- have, and there are good reasons there year and use it to pay off our national ing about a 20-percent new income tax is a reasonable limit to that. debt.

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00007 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.009 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1110 CONGRESSIONAL RECORD — SENATE January 30, 2009 Those economists who were testi- option open for a year. That will cost Those are examples of permanent tax fying before us said that is too high. us some money. That could be part of relief or business tax relief that could Forty percent is OK. They thought 60 this stimulus. It would create demand help create jobs now. percent is getting into a little bit of a in housing. It would create liquidity. It Third, we should not spend this kind problem. Eighty percent is too much, would get banks lending. We believe it of money on many of these programs. and 100 percent is a real problem. The would make a real difference. It would We should not borrow this money when practical problem is, as that number be a better way to start the stimulus each family already owes over a half a goes up—for example, as the entitle- package. million dollars. We should not borrow ment spending goes up and other debt A second idea, as Senator ISAKSON the money to spend on programs we do goes up—it squeezes out our ability to and others have suggested, is to create not have to have. That is not a wise use do anything else. I worked last year a tax credit for home buyers. We would of our dollars. We ought to take all of across party lines with Senator BINGA- say $15,000. So if you are sitting around that out of this stimulus bill. MAN and many others, and Senator thinking today, well, homes in Rich- For example, there are small exam- WARNER worked in the private sector mond have actually gotten down to a ples: buying new cars, money for con- in this way, to try to do something pretty good level, and I like that traceptives, rehabilitating off-road about American competitiveness. We house—you could get a $15,000 tax cred- trails, honey bee insurance. We can put into the law that we needed to dou- it when you buy the house, and when find items like that which don’t create ble our investments in scientific re- you file your income tax return, you jobs now. But the fact is, I am more search, and if we wanted to keep this get $15,000 back. This is real money, concerned about the $190 billion of en- high standard of living, we have a lot and you do not have to pay it back. If titlement spending, the automatic of work to do in high technology. you had a combination of a 4-percent spending that is in this $1.2 trillion. If we keep spending all the money on mortgage and a $15,000 tax credit for Every estimate is that $130 billion, $140 welfare, Medicare, Medicaid, Social Se- the next year, maybe we could get billion, $150 billion of that will never curity, and debt, we are not going to housing stabilized, maybe we could get get out of the budget. The House put in have anything left for the great univer- demand stirring, and maybe we could almost $100 billion of new Medicaid sities in the country on a yearly basis get people confidence that there is li- spending for the States. Well, Governors and legislators are or for investments in our future. Those quidity in the market. That might not going to like that except we are never are annual investments. We will be solve every problem, but it is the place going to be able to reform the Medicaid squeezing them out. That is another to start. We would say first, fix hous- Program. The Federal contribution to problem with debt. With a lower debt, ing. That is the way to restart the it is so rich that States cannot afford we have more money for not just the economy. to take a fresh look at it. What is Ten- investments in our future but for our Senator GREGG has suggested we national parks, our clean air, and the take some of the Federal Deposit In- nessee going to do after it gets $2 bil- lion—$1 billion a year—for the Med- other things we need to do to have a surance Corporation’s ideas about help- icaid Program for the next 2 years and, desirable country. ing people who are stuck in houses that then, in the third year, gets zero of Let me go back to the stimulus pack- are about to be foreclosed on and help that money? That sort of money ought age and ask: What do we need to do? to relieve those foreclosures. There not to be in a so-called stimulus pack- We need to, in the words of Senator may be a way for us to encourage GREGG—and I believe it is fair to char- age. servicers for all of these mortgages out We need some truth in packaging. If acterize Senator CONRAD, the chairman across the country to modify the loans of the Budget Committee, in the testi- it stimulates—and all of us can think as some banks are now doing. By modi- of things that do—then put it in; if it mony this week—we need to reorient fying the loan, they simply say to you: does not, keep it out. Historic preser- the stimulus package toward real es- What can you afford to pay? As long as vation fund grants, I love those, but tate, toward housing, and toward cred- you can pay that and pay the interest they are not going to stimulate jobs in it having to do with banks. First, fix on a regular basis, we will change the the next few months. Head Start, I was the problem: housing. loan to fit you. That way there is no the principal sponsor of that. Pell Every big mess has a way into it, and I be- foreclosure. The loan does not go bad. grants, I was a college president. Next lieve—and many on this side, and I think The houses on that same street do not some on the other side also believe—the way week, after the stimulus, we will be go down in value because your house is talking about how much we can afford into it is housing. How would one fix that? foreclosed on. We suggest we should Well, one suggestion by Glenn Hubbard— in our budget to increase those. Fed- former chairman of the Council of Economic spend the next week talking about re- eral spending for Pell grants has dou- Advisors and now at Columbia University is orienting the money that we seek to bled in the last 6 years, but those have the Treasury back, for a period of a spend to stimulate the economy on things do not belong in a stimulus year or 18 months, a 4-percent, 30-year fixed housing first. budget. rate mortgage for creditworthy customers. Second, we suggest the next compo- Some things do. There are highways In other words, a bank in Nashville nent of a stimulus package should be that can be built. There are Corps of would say to you, if you are credit- tax relief that would help create jobs Engineers projects that can be com- worthy: We will give you a 30-year now. My own view is that temporary pleted. There are National Park Serv- mortgage at 4 percent. If today’s pre- tax relief is nice. I like having the ice infrastructure projects that can be vailing rate were 5.2 or 5.3 percent— money in my pocket, but it does not worked on next month. These are im- which it is in the marketplace—the stimulate very much. Permanent tax portant improvement programs. That Government would make up the dif- relief, the economists tell us—money would help stimulate as well. We ference, and it would probably guar- you can depend on for the future— should be able to make an intelligent antee the loan. That would create a builds confidence and stimulates the distinction between those things that new demand for housing. economy. can actually stimulate and those I was talking with someone in the For example, the small business ex- things that are just good-sounding mortgage business yesterday who pensing provision, which would spur in- things that we might vote for if we had pointed out that for one of our large vestments by doubling the amount the money and if we did not have to lenders in America, when the rates that small business owners can imme- borrow so much of it. That is our third went down naturally after the Federal diately write off on their taxes for cap- suggestion about what we should do. Reserve action a few weeks ago, the ital investments and for purchases of One other suggestion—here is an area number of mortgages issued by that new equipment in 2009. Another exam- where we actually have potential, I be- bank quadrupled. ple is the bonus depreciation provision, lieve, for bipartisan support. We should So if we were to say to the American that would be helpful. Middle-class tax do something, when we debate the people: If you are creditworthy, you relief—this is the permanent tax relief stimulus package, about automatic can buy a house; you can get a 4-per- I was talking about—by lowering the spending, entitlement spending, and by cent mortgage for a principal resi- 15-percent bracket to 10 percent and that we mean Social Security, Medi- dence, and we are going to keep that the 10-percent bracket to 5 percent. care, and Medicaid.

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00008 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.010 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1111 As I mentioned earlier, by the year fectly obvious that we are going to this stimulus. So why aren’t we consid- 2015—not so far away—that will be 70 have to do more. We are going to have ering that today? Why aren’t we con- percent of our budget. In other words, to do more in housing. We would like sidering that bad bank or what we are when we come here, we get to vote to to suggest we at least start addressing going to have to do about troubled as- appropriate 30 percent of the taxpayer housing in this stimulus package, but sets? dollars we spend because 70 percent is if we don’t do it here, President Obama So I think a better way to do it automatically spent on those entitle- and his team are going to have to rec- would be to say: Let’s bring in the ment programs. That is forcing our ommend some steps for us to take in amount of money for troubled assets— debt up to 100 percent of gross domestic housing because that is how you re- is it $500 billion?—let’s bring in the product. start the economy. money to reorient toward housing, $200 We had a breakfast on Tuesday here, Everyone who looks at the Nation’s billion or $300 billion, and then let’s see the bipartisan breakfast we have on banks and financial institutions knows what projects really do stimulate. Tuesday mornings. It is a chance for us we are going to have to do something Let’s do it all together, and then let’s to get together across party lines. It there. We passed a bill in October see how much money we are talking was evenly divided, actually. There called the Emergency Economic Sta- about so that we are not surprised and were 24 Members who came. The whole bilization Act, providing money to the people we represent are not sur- subject was the Senator Conrad-Sen- Treasury to address troubled assets. prised. I would like to see us do it all ator Gregg proposal to create a com- We thought it was going to be used to at once. mission that would come up with a way go get those bad assets off of the bank So next week in the Senate is a very to deal with Social Security, Medicare, balance sheets so they could get back important week. There is a good deal of and Medicaid, and present it to us. We in good shape and lend again. That is talk about bipartisanship. We appre- would vote it up or down, and some what happens when banks fail or get in ciate President Obama’s efforts on way we would be forced to deal with trouble. In normal times, the FDIC that. In my view, he and his team have this entitlement growth problem. swoops in and takes the troubled assets been genuine in their outreach to Re- Senator MCCONNELL, the Republican out, sells them to another bank, and it publicans. Just because we don’t agree leader, said in a speech a week ago closes on Friday and opens on Monday. with their ideas doesn’t mean there is today that he was ready to deal with Depositors are protected, and some- not a bipartisan spirit here. And as the entitlement programs, but he was times stockholders lose, but we go on time goes on, maybe we will get into a disappointed it was not dealt with in and barely notice it. However, that is situation where even though the Demo- the last 2 years. He pledged to Presi- not what the money we passed was crats have enough votes to pass most dent Obama he would give him more used for. It was used, basically, to give bills and we have enough votes to stop support on dealing with it than the money to banks to capitalize, and the cold some bills and to slow down any Democrats gave to President Bush dur- reason, apparently, was they were in bill, that is not the way we work. If we ing the last few years. You will remem- such bad shape, they had to have it. So come up with a better idea, maybe the ber President Bush tried in the begin- maybe it wasn’t a bad thing to do, but majority will adopt it and create a bill ning of his second term to deal with it wasn’t what we thought was going to Social Security. He wanted private ac- that builds confidence in the country. be done, and now we still have the President Bush technically didn’t counts. The Democrats said no to pri- problem of bad assets. need Congress’s approval, except on ap- vate accounts. So they just went down We asked the witnesses: How many propriations, to wage the war in Iraq. their parallel tracks and never got any- troubled assets do we have in all of Some of us thought it would be better where. Somehow they never got to- these banks? They said $1 trillion or $2 if he had it, though, so Senator gether and said: Well, let’s drop private trillion. I am not talking about a stim- SALAZAR and I, along with 17 Senators accounts, or let’s try to do this; we ulus package; I am talking about trou- and about 60 House Members across can’t do that. bled assets in financial institutions in President Obama has made clear he party lines, suggested that we adopt a the United States. We said: Well, then, is serious about this. Senator MCCON- resolution approving the principles of what are we supposed to do about that? NELL has made clear we are serious the Iraq Study Group as a way to con- They suggested that the ideas we are about it. We have a Conrad-Gregg pro- clude the war in Iraq honorably. Presi- likely to hear—they did not represent posal. We had 24 Senators meeting last dent Bush didn’t like that, and Major- the administration, but the adminis- Tuesday. We are meeting again next ity Leader REID wouldn’t bring it up tration is listening to many of the Tuesday. We believe something ought for a vote. We might have been the same people—was that they may rec- to be in this stimulus package that at only group that unified Senator REID least begins the process of dealing with ommend, for example, some entity that and President Bush on the Iraq war, entitlements in the long term so we will actually take the troubled assets but we couldn’t get it done. can say to the American people: Yes, out of the banks at some price, and I think it is a shame we couldn’t be- we are going to borrow some amount of then the banks are free to go ahead and cause Secretary Rice and Secretary money—maybe hundreds of billions of with confidence start lending again. Gates told me not long ago they dollars—to stimulate the economy, and And we can start borrowing again, the thought where we were going to end up we know it contributes to the debt, but economy goes again, but then we still in Iraq under Secretary Gates’ admin- we are at least taking a step toward have this entity over here. If it is going istration is about where the Iraq Study dealing with the long-term excessive to buy $1 trillion or $2 trillion worth of Group said we should. If we had adopt- debt we are experiencing in our coun- bad assets, where does it get the ed that as a Congress, perhaps the war try. money? Some of it is going to come would have been easier, and our en- Finally, after listening to the Budget from the taxpayers. How much of it? emies would have gotten a clearer mes- Committee hearings this week, the One witness said as much as we can af- sage, and our troops would have gotten conclusion I came to was that I wish ford to put in. So maybe $500 billion, more support, and President Bush we were doing it all now. Here is what $600 billion, $700 billion, $800 billion would have had a more successful Pres- I mean by that. I spoke a little earlier more dollars, not to spend as the stim- idency. about all the things we have tried to do ulus package does but to invest in as- So we won the election, and we since October at the Washington sets that we hope to sell for at least as passed the bill. That is the recipe for level—some by Congress, some by the much as we paid for them. That could passing many bills, but it is not the Federal Reserve, and some by the Fed- happen. We might lose some money, we recipe for a successful Presidency. I eral Deposit Insurance Corporation—to might make some money, but we are think President Obama knows that, restart the economy. Whether it was not spending it. But it is a lot of and that is why he has gone out of his dealing with the banks or the auto money, and it is taxpayers dollars, and way to visit with us and talk with us. companies or troubled assets, there has there will be a lot of concern in Vir- I hope—with the stimulus package, been a lot of effort here. ginia and in Tennessee and in every with entitlements coming down the After listening to the testimony in State when we have to do that on top road and health care plans coming the Budget Committee, it seems per- of what we have done before—on top of down the road—that the ideas we have

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00009 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.011 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1112 CONGRESSIONAL RECORD — SENATE January 30, 2009 on this side of the aisle, if they are lion, or $531,472 per household. That is more mortgage rate to the Treasury yield could good, are adopted on the other side of than four times what Americans owe in per- avoid this outcome in the future. While the the aisle and we genuinely can work sonal debt such as mortgages. economy is contracting, low interest rates The $2.5 trillion in federal liabilities would spur housing activity. When economic together in a legislative way. I think dwarfs the $162 billion the government offi- activity improves, the U.S. Treasury yield that can happen, and I would like for it cially announced as last year’s deficit, down and mortgage rates would rise. to happen starting next week. from $248 billion a year earlier. A 4.5% mortgage rate is not too low. The Next week is important for the Sen- ‘‘We’re running deficits in the trillions of 10-year U.S. Treasury yield closed at 2.3% on ate and important for the American dollars, not the hundreds of billions of dol- Dec. 12, 2008. Hence a 4.5% mortgage rate is people. We on the Republican side of lars we’re being told,’’ says Sheila Weinberg, 2.2% above the Treasury yield, above the the aisle believe we need a stimulus chief executive of the Institute for Truth in 1.6% spread that would prevail in a normally functioning mortgage market. package, but we believe it needs to be Accounting of Chicago. The reason for the discrepancy: Account- Some have argued that lenders should earn the right stimulus package. ing standards require corporations and state more than the average 1.6% spread, to com- First, it should fix the problem, and governments to count new financial obliga- pensate for the fact that housing is a much the problem is housing. That would tions, even if the payments will be made riskier investment today. We don’t think so. help restart the economy. And we have later. The federal government doesn’t follow Recall that a mortgage can be thought of as specific ideas about how to do that that rule. Instead of counting lifetime bene- a risk-free bond plus two possibilities that which I have suggested. fits for programs such as Social Security, increase risk to lenders: default and/or pre- the government counts the cost of benefits payment. Historically, the risk of default Second, we should let people keep adds about 0.25% to the interest rate. The re- more of their own money. That means for the current year. The deteriorating condition of these pro- maining spread of the mortgage rate over permanent tax cuts. That is a way to grams doesn’t show up in the government’s the Treasury yield represents the risk of pre- build confidence. bottom line, but the information is released payment and underwriting costs. With fall- Third, because we are borrowing this elsewhere—in Medicare’s annual report, for ing house prices, the risk of default could in- extraordinary amount of money and example. Since 2004, USA TODAY has col- deed add 0.75% or more for a newly under- because we have other requirements for lected the information to provide taxpayers written and fully documented loan. But 4.5% borrowed dollars, we should be very with a financial report similar to what a cor- would be the lowest mortgage rate in more poration would give shareholders. Big new li- than 3o years—so the additional risk to lend- careful about what we borrow and what ers of prepayment would be almost nil. And we spend it for and only spend it for abilities taken on in 2007: Medicare: $1.2 trillion. low mortgage rates would substantially re- those items that genuinely stimulate Social Security: $900 billion. duce the risk of further house price declines. the economy and create jobs in the Civil servant retirement: $106 billion. Moreover, a 4.5% mortgage rate will raise very near term. That is the truth in Veteran benefits: $34 billion. housing demand significantly. A simple fore- packaging. The multitrillion-dollar loss is a more cast can be obtained by applying the 2003– If we adopt those three principles, meaningful financial number than the offi- 2004 homeownership rates to 2007 households. cial deficit, says Tom Allen, chairman of the We use the 2003–2004 home ownership rates then I think there will be genuine bi- because those were the years of the lowest partisan support next week for a stim- Federal Accounting Standards Advisory Board, which helps set federal accounting previous mortgage rates (the average mort- ulus. If we don’t, there won’t be. That rules. gage rate was 5.8%). is why we have the Senate. That is why Medicare has an unfunded liability of $30.4 An increase in the homeownership rate we have the debate. That is why I trillion. from 67.9 (third quarter, 2008) to 68.6 (the av- think we are here. That means, in addition to paying all fu- erage rate from 2003–2004) would increase Mr. President, I ask unanimous con- ture Medicare taxes, the government needs homeownership by about 800,000 new home- $30.4 trillion set aside in an interest-earning owners. If we also take into account the sent to have printed in the RECORD fol- changing relative age distribution of the account to pay benefits promised to existing lowing my remarks an article by R. population, there would be a total of 1.6 mil- taxpayers and beneficiaries. The amount is Glenn Hubbard and Christopher J. lion new homeowners. A simple statistical sure to rise when the oldest of 79 million analysis examining the impact of lower Mayer detailing the proposal for a 4.5- baby boomers—62 this year—reach 65 and be- mortgage rates and higher unemployment percent mortgage loan over 30 years. come eligible. rates yields an even higher, and firmer, esti- The ACTING PRESIDENT pro tem- Economist Dean Baker says the huge li- mate of 2.4 million additional owner occu- pore. Without objection, it is so or- abilities are potentially misleading because pied homes in 2009. dered. future generations will have greater income. The increased demand for housing arising (See exhibit 2.) ‘‘If we fix health care, then our deficits can from lower mortgage rates would provide a Mr. ALEXANDER. Mr. President, I be easily dealt with,’’ he says. floor on further house price declines. Esti- ask unanimous consent to have printed mates in our recent paper suggest that real EXHIBIT 2 in the RECORD as well an article from house prices increase by about 75% of the de- the Wall Street Journal this week [From the Wall Street Journal, Dec. 17, 2008] cline in after-tax mortgage payments. So a called ‘‘A 40-Year Wish List’’ as an ex- LOW-INTEREST MORTGAGES ARE THE AN- decline in mortgage payments of 16% would result in approximately a 12% floor on the ample of the kinds of items that are in SWER—STOP THE DECLINE IN HOME PRICES, STOP THE CRISIS decline in house prices. the stimulus bill that ought not to be (By R. Glenn Hubbard and Christopher J. Current futures markets suggest that if we are careful about the money we Mayer) house prices will decline by 12%–18% in the are borrowing to spend. next 18 months. So a 4.5% interest rate Recent news articles suggest that the might well lead to flat or even slightly high- The ACTING PRESIDENT pro tem- Treasury Department is considering a plan pore. Without objection, it is so or- er house prices in 2009. to offer a 4.5% mortgage for home buyers for Stabilizing house prices will likely im- dered. a period of time. Let’s hope it does. It would prove consumer confidence substantially. In- (See exhibit 3.) help arrest the decline in house prices that is creases in house prices relative to where EXHIBIT 1 at the base of the ongoing financial crisis they would have gone with higher mortgage [From USA Today, May 19, 2008] and recession. rates would also provide a housing wealth ef- Raising the demand for housing makes fect—that is, higher annual increases in TAXPAYERS’ BILL LEAPS BY TRILLIONS sense now. While fundamental factors clear- spending as consumers feel richer—on con- (By Dennis Cauchon) ly played a role in driving down house prices sumption of as much as $76 billion to $113 bil- The federal government’s long-term finan- that were at excessive levels two years ago, lion each year. cial obligations grew by $2.5 trillion last we have argued in a paper (to be published in The 4.5% mortgage rate that the Treasury year, a reflection of the mushrooming cost of the Berkeley Electronic Journal of Eco- is considering also should be available for Medicare and Social Security benefits as nomic Analysis and Policy) that in most present homeowners who want to refinance, more baby boomers reach retirement. markets house values are today lower than because of the benefits for the economy as a That’s double the red ink of a year earlier. what is consistent with the average level of whole. We calculate that up to 34 million Taxpayers are on the hook for a record affordability in the past 20 years. households would be able to do so, at an av- $57.3 trillion in federal liabilities to cover Nonetheless, without policy action house erage monthly savings of $428—or a total re- the lifetime benefits of everyone eligible for prices are likely to continue falling, thanks duction in mortgage payments of $174 bil- Medicare, Social Security and other govern- largely to the meltdown in mortgage mar- lion. This is a permanent reduction in pay- ment programs, a USA TODAY analysis kets and the weakening employment out- ments and is thus likely to spur appreciable found. That’s nearly $500,000 per household. look. Conversely, we see little risk that in- increases in consumption. When obligations of state and local govern- creasing the demand for housing will touch Moreover, trillions of dollars of ments are added, the total rises to $61.7 tril- off another housing bubble. And indexing the refinancings would retire a large number of

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00010 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.012 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1113 the existing mortgage-backed securities. than half of their costs. However, the people ulus bill is colossal in nature, and it is This would reduce uncertainty about the who operate these systems belong to public- going to be moved through the Con- value of existing mortgage-backed securi- employee unions that are campaign contrib- gress with little or no significant ties. It would flood the market with addi- utors to . . . guess which party? changes. Those of us who have been tional liquidity that the private sector could Here’s another lu-lu: Congress wants to deploy to other uses such as auto loans, cred- spend $600 million more for the federal gov- around a while can see what is hap- it cards, commercial mortgages and general ernment to buy new cars. Uncle Sam already pening. The bill moved through com- business lending. spends $3 billion a year on its fleet of 600,000 mittee. A lot of good amendments and A reduction of mortgage interest rates to vehicles. Congress also wants to spend $7 bil- suggestions for change were made in 4.5% (or, given yesterday’s Fed action, to a lion for modernizing federal buildings and fa- the Appropriations Committee, but lower level) is superior to other proposals cilities. The Smithsonian is targeted to re- none passed. A lot of ideas and sugges- that focus only on stopping foreclosures, or ceive $150 million; we love the Smithsonian, tions were made in the Finance Com- on reforming the bankruptcy code to keep too, but this is a job creator? people in their homes. Stopping foreclosures, Another ‘‘stimulus’’ secret is that some mittee, and none were agreed to, at however meritorious, may not limit the dan- $252 billion is for income-transfer pay- least none of any significance. There gerous decline in house prices as much as ments—that is, not investments that argu- are provisions in the bill I would proponents claim. It could work the other ably help everyone, but cash or benefits to strongly support and believe should be way. Stripping down mortgage balances in individuals for doing nothing at all. There’s part of a stimulus package because I bankruptcy would likely raise future mort- $81 billion for Medicaid, $36 billion for ex- think a targeted, smart bill can help gage interest rates and lower the availability panded unemployment benefits, $20 billion improve our economy, but it is not for food stamps, and $83 billion for the of mortgages, reducing house prices. going to change the difficulties we are Finally, a decrease in the mortgage rate, earned income credit for people who don’t even though it is intended be a temporary pay income tax. While some of that may be in, I am convinced of that. intervention in the present exigency, plants justified to help poorer Americans ride out Christina Romer, President Obama’s a seed for future thought. Given the chaos of the recession, they aren’t job creators. top economist, has predicted that if we the recent past, wouldn’t a return to simple, As for the promise of accountability, some pass a stimulus bill, the unemployment 30-year fixed-rate mortgages with a low rate $54 billion will go to federal programs that rate will not reach quite so high. Her be the right foundation for the long-term fu- the Office of Management and Budget or the numbers were referred to in the Budget ture? Government Accountability Office have al- Committee, of which the Presiding Of- ready criticized as ‘‘ineffective’’ or unable to ficer, Senator WARNER, is a member. EXHIBIT 3 pass basic financial audits. These include the Those numbers were brought out, but [From the Wall Street Journal, Jan. 28, 2009] Economic Development Administration, the Small Business Administration, the 10 fed- even without any stimulus, she pro- A 40-YEAR WISH LIST eral job training programs, and many more. jected the unemployment rate would ‘‘Never let a serious crisis go to waste. Oh, and don’t forget education, which not reach 10 percent. What I mean by that is it’s an opportunity to would get $66 billion more. That’s more than During the tough recession when do things you couldn’t do before.’’ the entire Education Department spent a President Reagan broke the infla- So said White House Chief of Staff Rahm mere 10 years ago and is on top of the dou- Emanuel in November, and Democrats in tionary spiral we were in, we hit al- bling under President Bush. Some $6 billion most 11 percent unemployment. The Congress are certainly taking his advice to of this will subsidize university building heart. The 647-page, $825 billion House legis- projects. If you think the intention here is to Congressional Budget Office also pro- lation is being sold as an economic ‘‘stim- help kids learn, the House declares on page jected that with no stimulus, the un- ulus,’’ but now that Democrats have finally 257 that ‘‘No recipient . . . shall use such employment rate would not reach 10 released the details we understand Rahm’s funds to provide financial assistance to stu- percent. When asked if the stimulus point much better. This is a political wonder dents to attend private elementary or sec- package would make it any better, Mr. that manages to spend money on just about ondary schools.’’ Horrors: Some money Sunshine, the Acting Director of the every pent-up Democratic proposal of the might go to nonunion teachers. Budget Office at that time, said it last 40 years. The larger fiscal issue here is whether this We’ve looked it over, and even we can’t spending bonanza will become part of the an- might. quite believe it. There’s $1 billion for Am- nual ‘‘budget baseline’’ that Congress uses as I think a stimulus package can help trak, the federal railroad that hasn’t turned the new floor when calculating how much to but I do not think a stimulus package a profit in 40 years; $2 billion for child-care increase spending the following year, and is going to change the fundamentals of subsidies; $50 million for that great engine of into the future. Democrats insist that it will this tremendous economy, which is job creation, the National Endowment for not. But it’s hard—no, impossible—to believe going through a period of rebalancing the Arts; $400 million for global-warming re- that Congress will cut spending next year on and adjustment that is painful. It is search and another $2.4 billion for carbon- any of these programs from their new, higher capture demonstration projects. There’s even not going to be bought away by throw- levels. The likelihood is that this allegedly ing a few billion dollars or maybe even $650 million on top of the billions already emergency spending will become a perma- doled out to pay for digital TV conversion nent addition to federal outlays—increasing a trillion dollars at it. coupons. pressure for tax increases in the bargain. I wish to make that point in general. In selling the plan, President Obama has Any Blue Dog Democrat who votes for this We are in a tough time. We are going said this bill will make ‘‘dramatic invest- ought to turn in his ‘‘deficit hawk’’ creden- to go through a tough time. It is not ments to revive our flagging economy.’’ tials. going to be easy, but this country has Well, you be the judge. Some $30 billion, or This is supposed to be a new era of biparti- gone through tough times before. We less than 5% of the spending in the bill, is for sanship, but this bill was written based on can hope and pray it will not be as fixing bridges or other highway projects. the wish list of every living—or dead—Demo- tough as the tough recession we had in There’s another $40 billion for broadband and cratic interest group. As Speaker Nancy electric grid development, airports and clean Pelosi put it, ‘‘We won the election. We the early to mid-1980s. We survived water projects that are arguably worthwhile wrote the bill.’’ So they did. Republicans that. We developed some economic priorities. should let them take all of the credit. principles that ended inflation, and we Add the roughly $20 billion for business tax Mr. ALEXANDER. Mr. President, I had 25 years of steady progress based cuts, and by our estimate only $90 billion out yield the floor, and I note the absence on a sound dollar and sound economy. of $825 billion, or about 12 cents of every $1, I guess I would say let’s be a bit hum- is for something that can plausibly be con- of a quorum. sidered a growth stimulus. And even many of The ACTING PRESIDENT pro tem- ble in what we think we can accom- these projects aren’t likely to help the econ- pore. The clerk will call the roll. plish. omy immediately. As Peter Orszag, the The assistant legislative clerk pro- I will add one more point. Politi- President’s new budget director, told Con- ceeded to call the roll. cally, Presidents and Congress like to gress a year ago, ‘‘even those [public works] Mr. SESSIONS. Mr. President, I ask do something. When there is difficulty that are ‘on the shelf’ generally cannot be unanimous consent that the order for out there and the TV every night is undertaken quickly enough to provide time- the quorum call be rescinded. coming with some bad news stories and ly stimulus to the economy.’’ The ACTING PRESIDENT pro tem- our constituents are worried, elected Most of the rest of this project spending officials feel like they must do some- will go to such things as renewable energy pore. Without objection, it is so or- funding ($8 billion) or mass transit ($6 bil- dered. thing; if we don’t do something, our lion) that have a low or negative return on Mr. SESSIONS. Mr. President, there constituents will get mad at us and investment. Most urban transit systems are is a growing recognition in the Con- vote us out of office. But what if the so badly managed that their fares cover less gress that the so-called spending stim- right thing to do is to not overreact?

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00011 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.004 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1114 CONGRESSIONAL RECORD — SENATE January 30, 2009 What if the right thing for America is rency and pay back our debt with dol- they look at this one, they are aghast, to ask ourselves what it is that can ac- lars less valuable than the ones we bor- and they are warning us that infra- tually be of benefit, and let’s do that. row today. That is what we call debas- structure spending has never success- But let’s not go hog-wild, let’s not do ing the currency. That is inflation. fully lifted a country out of an eco- some things that are going to do long- That is a corrosive situation the coun- nomic slowdown. There are many ex- term damage to the country. That is try must not get into and has not been amples of that around the world. These where we are. Good people can disagree in for the last 25 years. Those are the economists are saying that. on where that line is drawn. A lot of temptations we can fall into when the Marty Feldstein, an economist Presi- people are talking about politics—Re- debt gets too great. dent Reagan admired and conservatives publicans did not get this amendment The argument is we want to have have admired and most Americans or that amendment. I am beyond dis- shovel-ready projects, and those shov- have admired, said at one point he fa- cussing those issues at this point. My el-ready projects will increase employ- vored a stimulus bill. I think about view is: Is the stimulus bill that is ment and will help us work our way $350 billion. He has now written an op- going to be moved in this Senate, through this recession. It is going to be ed in the Wall Street Journal saying which is even bigger than the one in longer than most recessions. It is going this is bad; do not pass this stimulus the House—it was $818 billion, I be- to end, but it will be longer than most bill. He opposes it. lieve, in the House legislation, and this recessions. The Chamber of Commerce—I like one is already now at $888 billion. They The message that has gone out is in- the Chamber of Commerce. They are added $70 billion for the AMT tax fix. frastructure is behind. Roads and great folks. But if anybody thinks they So it is now almost $900 billion. bridges are not up-to-date. We need to are not self-interested does not know I am not sure how much thought we spend money on them. Now would be a what they do. They have a lot of Mem- have given to it. We certainly have not good time to go into debt and borrow bers who are going to benefit from this had extensive hearings on this legisla- money and fix roads and bridges and program. They are going to get bucks tion. That is where we are strategi- that we would, therefore, be able to out of it. They favored a stimulus cally. create jobs and have something con- package sometime ago, and they said Let me say to my colleagues on both crete after it is all over. we need a stimulus package. Now they sides of the aisle, the more people look I like building bridges because it is a are saying they are not for this bill. at this so-called stimulus bill, really a concrete thing, and when it is over, They are opposing it, even though their spending bill, the more disastrous and people can benefit from it for genera- members, a lot of them, are going to the more flawed they are finding it to tions to come. Unlike a lot of the Gov- get bucks out of it. Because we are be. Most Members of Congress, most ernment programs that are in this bill, throwing a lot of bucks out there, and Members of the Senate, I think, want we spend billions and billions of dol- they are going to get some. Even they, to support a stimulus bill. They prob- lars, and when it is over, we ask our- in the interest of their country and the ably have made public statements that selves: Did it do any good at all? long-term vision for the economy, have they want to support a stimulus bill. As I indicated, we now know the re- concluded it is not good for this coun- But all of a sudden, people are saying: quest for roads and bridges in the $900 try to pass the bill we are dealing with Whoa, really? Is that much in it? This billion stimulus bill amounts to around now. is in it? Only 3 percent of the money $30 billion—$15 billion the first year, The bottom line is that I am con- goes to roads? Really? I thought it was $15 billion the second. There is other vinced now that the extreme long-term a roads bill. We are hearing that kind infrastructure spending—on hospitals, cost of this legislation outweighs any of talk. People are beginning to ask school money, those kinds of things. short-term benefits. And remember, questions about what is in the legisla- The idea that this is a roads and the $1.2 trillion, the $900 billion plus tion that can spend $900 billion. bridge bill is false. It is false. It is not the interest on it that CBO has cal- It doesn’t just cost $900 billion. The so. culated—and it is only right that they Congressional Budget Office has looked In addition to that point, I note the do so—comes on top of a $700 billion at it, as they are supposed to do. They Congressional Budget Office examined bank/Wall Street bailout that proved are a nonpartisan office. They give us the legislation to ask whether this ineffectual, has not been successful. We good information on how much legisla- spending we would be participating in are being told now—and President tion costs, among other things. would actually come forward quickly, Obama met with the Republicans in a Remember, every dime of spending, as everybody says it must, to create very nice discussion, and the President all of this $900 billion increases the jobs now and, therefore, help us ease acknowledged that they are going to debt. We are already in debt. Any other the rising unemployment we are see- have to be coming back and asking for dollar that is spent increases the debt. ing. more Wall Street money not that many So the $900 billion spending bill will in- CBO has found that only around 50 weeks from now. So we are not through crease the debt in 10 years by $900 bil- percent of the spending that is in the yet with throwing taxpayers’ money lion, and you have to ask yourself: legislation will occur in the first 2 into this vortex. Where do we get that money? We have years. The surge in debt and reckless spend- to borrow the money. And to borrow What about this year, the first year? ing that we have seen in the last year, the money, we have to pay interest on But even over 2 years, only 50 percent from both parties, is unlike anything it. The Congressional Budget Office has of it is spent. The other 50 percent is this Nation has ever seen in its history, calculated it. They didn’t at first, but going to be spent after 2 years, in years yet there has been such little serious now they have. They calculate $347 bil- 3, 4, 5. According to Ms. Romer, the discussion about where the money is lion over the next 10 years, the budget President’s top adviser on the econ- going, how we are going to account for period we are looking at, will be ex- omy, we will be coming out of the re- it, and whether we will receive a legiti- pended by the American taxpayers to cession by then anyway without a mate benefit from it. It is amazing to pay interest on this debt. By the way, stimulus package. me. So I think we have to reconsider the deficit this year is the largest one The programs, in addition to the con- the size and the nature of this legisla- in the history of the Republic. struction projects and spending plans tion. We cannot do this. It is bad for I will talk about the debt a little bit that are put together, have been poorly America. It is not a question of Repub- more because it is important. There is cobbled together in haste. They have licans and Democrats and that kind of no free lunch. Julie Andrews in ‘‘The not been well thought out. There is no thing. I know the conventional wisdom Sound of Music’’ said nothing comes way they could have been well thought is we have to do something; if we don’t from nothing, nothing ever could. out. do something, people will be mad at us; Debts will be repaid. You think: Well, Three hundred economists, including if we don’t do something and the econ- we may not repay these debts. We will three Nobel laureates, have signed a omy gets worse, they will say: You have to, and we will pay interest on it. petition condemning the stimulus plan didn’t do anything, you stupid goof. We may succumb to the very per- as it is now written. Many of them You sat on the sideline and didn’t do nicious temptation to inflate the cur- would favor a stimulus plan, but when anything. But I have to say, at some

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00012 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.013 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1115 point you can do too much and you can imagine all the income tax payments of the Iraq war. We have spent about do things that are unwise, and that is that come to our country from individ- $500 billion on the Iraq war in the 5 what we are paid to decide here. uals. That amounts to $1.1 trillion. years that has occurred. That has been So I am committed, and I will do Right here, without the stimulus, we a major expense of the U.S. Govern- what I can, to defeat the bill as writ- are at $1.2 trillion, equal to the entire ment, and it has been very painful to ten. I will support a more targeted, revenue from the income tax in Amer- us. People have been not happy about cost-effective, temporary plan that can ica. With the stimulus package, CBO it. But by surging this debt, we will in help our economy, but it must be done estimates it will be just over $2 tril- the future be incurring an interest pay- at a price we can afford. lion, and that does not include the in- ment almost equal every year to the 5- I am going to talk in a minute about terest that will be accumulated on it. year cost of the Iraq war. the size of the deficit we are facing. As That $1.2 trillion deficit that they So I say to my colleagues, I know the a member of the Budget Committee, I are projecting now includes $200-plus momentum has been going forward. I know it is a grim discussion. I have billion for the Wall Street bailout, and know the House moved forward with concluded that this is a fight for the they are also including about $240 bil- the bill and people have expected that very financial soul of our country. I lion for the Freddie and Fannie finan- we are going to pass it, but I am not mean, what is it we are doing here? Are cial bailout, those huge institutions sure. I think the American people are we fulfilling our responsibilities to that bought up these bad mortgages getting concerned about this, and they watch over the taxpayers’ money? and then we bailed them out. That is are saying, let’s pare this down. Why Presidents can’t spend money if we what helps drive the number. Next can’t we do a $200 billion or a $300 bil- don’t appropriate it. Every dime Presi- year, they are projecting $703 billion lion dollar stimulus package that will dent Bush spent on the Wall Street and then $498 billion—all of those big- actually create jobs and won’t add so bailout, we gave to him. Every dime ger than any in previous history, and much money to our deficit and will cre- President Bush spent on sending out we will be seeing some additional ex- ate things that are of permanent value those checks last spring that were sup- penditures there. to the public, not providing relief to posed to stop the recession went to the For example, this $703 billion does soldiers who fought with us in world debt. It increased our debt, causing us not include the alternative minimum wars and other programs that are in last year to have the biggest deficit in tax fix, which costs $70 billion a year. the legislation. the history of the Republic. It didn’t I think most of my colleagues probably This is the beginning of a discussion, work, but we gave the money. It is not know this, but I see some new Members or it ought to be the beginning of a na- President Bush who did it; we funded of the Senate here, so to tell you all tional discussion about what this coun- it. And no stimulus spending bill is how we gimmick the system, the alter- try is about. We need to ask ourselves: going to get passed and no money is native minimum tax is $70 billion a Isn’t it important that we have a sound going to be available to be spent unless year to fix it. Everybody knows we are currency? Shouldn’t a sound dollar be Congress spends it. It is our responsi- not going to allow it to kick in and hit one of the highest possible goals of the bility. We can’t pass it off on President the American economy at the full Congress? And to have that, aren’t we, Obama. amount. So why don’t we go on and fix as a Congress, going to have to be re- Let me show this chart. As a member it permanently and set a rate? Because sponsible enough to, in times of uncer- of the Budget Committee who has dealt CBO will score it. And if we score it for tainty and fear, be able to rationally with these issues for a number of years, $70 billion a year, for a 10-year budget, think through this and do this right? this chart is where my mind is, if you that is $700 billion. So we pass a law My 90-year-old aunt, who I was with want to know the truth. In 2004, after that fixes it for 1 year, and the next last week in Alabama, said to me: You that recession, when President Bush year, when they calculate the debt, all don’t know what you are doing up cut taxes and did some other things—I they assume we are going to have $70 there, do you? And I don’t think we do. think he even sent out some stimulus billion more in revenue from the alter- I think that was as good a synopsis of checks in that period of time—the def- native revenue tax. But we are not what the American people are thinking icit that year amounted to $413 billion. going to have that money because we about us as anything I have heard. We That is how much we spent that year are going to fix it again. There are a don’t know, and we have to get serious more than we took in, in 2004. It was lot of gimmicks in here, so those num- here. It is our responsibility. When we the largest number we had ever seen. bers are going to be a lot higher. I are talking about trillions, we are talk- And he was pummeled by the loyal op- know this. I have been here, and I ing about real money. position, my Democratic colleagues, know how the system works. I thank the Chair, and I yield the for wasteful spending and for putting Finally, I will add one more thing to floor. us in deficit and that kind of thing, and the discussion, and that is the interest The ACTING PRESIDENT pro tem- some of that was justified, in my view. on the debt. We are now a little under pore. The Senator from Colorado is rec- In 2005, the deficit dropped about $100 $200 billion a year in paying interest on ognized. billion. It dropped to $318 billion. In the debt. The debt has been growing. I f 2006, it dropped to $248 billion. In 2007, think it is about $10 trillion. In the a year and a half ago, it was $161 bil- next 10 years, the estimates are it OUR COUNTRY’S CHALLENGES lion. We were heading in the right di- could be $21 trillion in debt—the total Mr. UDALL of Colorado. Mr. Presi- rection. I began to feel better about the debt of America. This bill, by the way, dent, I rise today with full and humble country. Last spring, we sent out $160 raises the debt limit. It has to, because appreciation for the critical scrutiny a billion in checks to try to stop this we are adding another trillion dollars Senator’s maiden speech usually at- economic slowdown, and that virtually in debt. The Congressional Budget Of- tracts. I am also aware of the some- doubled the deficit. We came in, Sep- fice scores that in 2014—5 years from what forgotten tradition here in which tember 30 of last year, when the fiscal now—the interest on the debt will not freshmen Senators took some consider- year ended, the deficit was $455 bil- be $200 billion, but counting the stim- able time before throwing caution to lion—the largest, I think, ever, but cer- ulus package it will be around $430 bil- the wind, opening their mouths, and tainly the largest since World War II— lion. hoping to enlighten their wiser and and we didn’t hear much talk about Now, how much money is that—$430 more experienced colleagues. That tra- that. The Congressional Budget Office billion? Today, it is $200 billion, and 5 dition like many others has eroded is our expert office on this, and we now years from now it will be $430 billion. over time, such that in recent years see that they have estimated that Big deal. But that is every year, No. 1. freshmen Senators have taken to the without the stimulus package, without It is every year. And to give some per- floor early and often. I hope my words the stimulus bill, the deficit this year spective on how large that is, it is today will not encourage a revival of will be $1.2 trillion, more than twice more than a third of the income tax the older tradition. the highest deficit in the history of the revenue of the entire U.S. Government I am also aware that many new Sen- Republic. To give you some idea of how from individuals, and it is a number ators use the occasion of their first much money we are talking about, that is almost equal to the 5-year cost speech to introduce a specific bill or to

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00013 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.015 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1116 CONGRESSIONAL RECORD — SENATE January 30, 2009 speak at length about pending legisla- that the price of oil will rise. We have shared purpose. I call it the spirit of 9/ tion. I hope to do something different not seen the end of the energy crisis 11, in the best sense of that term. I today. I will not speak about specific that crippled our economy last sum- want to invoke it here, not to use it as legislation, but I will speak about this mer. We did survive the first wave of a patriotic bludgeon but to remind us moment in our country’s history, the this energy tsunami, but we must pre- how it felt to know our country had perils we face, and my sincere hope pare for the waves to come. been attacked and that we were united that we will address the critical issues This economic crisis is also made in our response and in our resolve. If of our time in a new way, with less ran- more perilous by the fact that our there were ever a time when we needed cor and with a shared commitment to country is still engaged in two unfin- to recapture that spirit of 9/11, it is bridge the partisan divide that has ished wars. Mr. President, 150,000 of our now. Surely we do not need another characterized so much of our recent po- best and bravest are serving in Iraq and tragedy to unite us in that common re- litical experience. Afghanistan. Our Army has been sponse and resolve. We need only look We have inaugurated a new President stretched to the breaking point, and ahead at the deep challenges we face. and a new administration, and a new our national security depends on im- I am comforted by our history. A Congress is taking shape. These devel- plementing a new strategy that in- reading of our history shows that we opments represent a fresh start, a new cludes rebuilding our defense capa- have been through worse. We have en- start, one in which every American, re- bility. dured a terrible Civil War, two world gardless of party or political affili- Elsewhere in the world, in North wars, and an economic catastrophe of ation, can rejoice because if there were Korea, in Gaza, in the winding alleys of far greater dimension. With each suc- ever a time when our country hungered Pakistan, in the shadowy corridors of cessive American generation, we have for a fresh start, it is here and it is power in Iran, we face threats from worked to cleanse the Nation from the now. new enemies, the risks of widening con- stain of slavery, bigotry, and racial The American people are impatient flict, and the gravest danger of all in prejudice. With each successive genera- with politics, and with good reason. the new century—the potential for a tion, we have grown wiser, more en- Our country is facing significant peril. nuclear weapon to fall into the hands lightened, and more prosperous. We More of our fellow citizens are losing of terrorists. have seen the great middle class lifted their jobs and their homes. Credit is David Sanger points out in his com- and engaged in building the strongest drying up. Businesses, large and small, pelling book, ‘‘The Inheritance,’’ that and most creative economy the world are cutting back. Americans have seen America’s response to 9/11 has not been has ever seen. So if history is our the value of their college and retire- without strategic error. America’s po- guide, I know we will meet the chal- ment savings plans reduced dramati- sition in the world, military and eco- lenge of this moment. cally. We may be facing the most sig- nomic, has been weakened at the very As a son of the West, I am also proud nificant and difficult economic crisis moment we need to lead the world. of our special history. Of course, every since the Great Depression of the 1930s. This list of challenges is daunting, region of America has a story to tell This has put me in mind of a great and it does not include other pressing and a contribution to make to the and courageous predecessor, Senator problems bearing down on us, such as whole. Among many qualities in the Edward Costigan, who served here, the escalating cost of health care, a West, we particularly treasure inde- from Colorado, from 1931 to 1937, the Federal budget deficit that threatens pendence and we have little time for very depths of the Great Depression. I to wash away the foundation for our brooding pessimism. The great western have reverence for Senator Costigan children’s economic future, illusive sol- writer Wallace Stegner put it best because he was born of the progressive vency for key programs such as Medi- when he wrote about the people he tradition of the West—a tradition the care and Social Security, a broken im- called ‘‘stickers,’’ those who settled Udall family has participated in over migration system, and mounting evi- the West against all odds and obsta- many generations. Senator Costigan is dence that global climate change is cles. He called them stickers because largely remembered for his effort to threatening our natural environment. they were not quitters and they did not pass an antilynching law at a time In addition to losing influence on the leave the scene of a challenge. They when people of color were under a con- world stage and struggling to restore a stuck to the land because of their spir- stant threat of mob violence. He was wrecked economy, in addition to Iraq it, their courage, and their hopes for a also a champion of economic reform. and Afghanistan, we may also have a better community in which to raise I found it interesting that Senator third war on our hands—this one with their children—and, to be honest, be- Costigan, in this Chamber in 1932, Mother Nature. If Mother Nature fails, cause they were too doggone ornery to spoke on behalf of a stimulus bill— our list of challenges will seem small give up. which was then called a relief bill— by comparison. We are a country of stickers, and now using words that are eerily relevant 76 The question, then, before us is, Will it is up to the 111th Congress to be years later. Arguing for the bill, Sen- this be a moment of anxiety or opti- stickers too. The American people have ator Costigan said: mism? In truth, I believe it is both. vested their hopes and aspirations in One almost despairs of the ability of Amer- The challenges we face are among the us, to serve them well in the institu- ica’s industrial and political generals to save most significant ever faced by a new tions of democracy we call the Con- America in its present crisis. . . . President and Congress. gress. Thankfully, we have not reached a Although I join the Senate as a proud As I close, I want to return to my point of economic collapse anything western Democrat, buoyed by the suc- predecessor in this seat, Senator Ed- like that which occurred when Senator cess my party enjoyed in the last elec- ward Costigan, and his long fight Costigan spoke. But Americans who tion, I think it would be a terrible mis- against the evil of lynching. In a have lost their jobs or their savings take to see the challenge of this mo- speech on this subject in 1935, he ex- know this crisis is every bit as real and ment in purely partisan terms. The pressed the hope that partisan and sec- every bit as devastating. problems we face are not Democratic tional division would give way to a This current crisis is made worse by or Republican problems, they are true common purpose. He said: our continued addiction to oil and our American problems, and they will only Ours is truly at last a new South, a new dangerous dependence on foreign oil in be met by American solutions. Much North, a new East, and a new West, unitedly particular. While the global market lipservice is given to the idea of bipar- building a new America of common human- price of oil and gasoline dropped re- tisanship and the notion of working ity, guarded by just and ever more equal markably from record highs of last across the aisle. Frankly, I have to tell laws. year, no one should be under any illu- you, I think it is cynicism to breathe Senator Costigan was calling for a sion that this price slide will continue. life and action into these words that new way of looking at the political Continued instability in the Middle hamstring us. challenge in his day, one that looked East, combined with ever-increasing Like many of you, I was serving in toward a uniting purpose. We have a demand in China, in India, and other the Congress on 9/11. That tragedy similar calling today. We may often di- global markets, will inevitably mean awakened a deep spirit, a deep spirit of vide as Republicans and Democrats on

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00014 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.020 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1117 what we think is best for our country. Coach Whittingham took over the head Unfortunately, the success enjoyed Debate is good. We should encourage a coaching job at Utah 4 years ago, fol- by the Utah football team has been vigorous exchange of ideas and not fear lowing what was, at that time, the marred somewhat by the controversy disagreement. But we ought always, al- most successful season in school his- surrounding the Bowl Championship ways to strive for a common purpose. tory. The Whittingham family is sort Series. The Utes were the only football I wish to express my deep thanks to of a football institution in the State of team in NCAA Division I to finish the my fell Coloradans who have given me Utah. So fans and alumni had high ex- season 2008 undefeated. Their season the opportunity and honor to represent pectations about the future of the pro- included victories against a power- them here at this challenging and im- gram, and Coach Whittingham has not house team at Brigham Young Univer- portant time in our history. disappointed them. In each of his four sity, Oregon State, Texas Christian I suggest the absence of a quorum. seasons, the Utes have finished with a University, and Alabama, all of which The ACTING PRESIDENT pro tem- winning record and have won a bowl finished the season ranked in the Asso- pore. The clerk will call the roll. game. In fact, the University of Utah ciated Press Top 25—the latter two in The assistant legislative clerk pro- has won a bowl game in six consecutive the Top 10. In fact, Alabama spent ceeded to call the roll. seasons and, overall, they have been much of the regular season ranked Mr. HATCH. Mr. President, I ask victorious in their last eight bowl ap- number one in the country before los- unanimous consent that the order for pearances—the longest current streak ing to Florida near the end of the sea- the quorum call be rescinded. in college football. Coach Whittingham son. The PRESIDING OFFICER (Mr. has been on the staff that entire time, Yet despite these accomplishments, UDALL of Colorado.) Without objection, first as defensive coordinator and now even with its perfect record and im- it is so ordered. as the head coach. pressive schedule, the University of f The Utes have been lead on the field Utah finished the season ranked second by quarterback Brian Johnson. He in the country. Florida, the team that CONGRATULATING THE capped an outstanding college career won the so-called BCS Championship UNIVERSITY OF UTAH this past season by winning the Moun- Game, had a very good year. But un- Mr. HATCH. Mr. President, I rise tain West Conference’s Offensive Play- like Utah, they were not undefeated; today to speak about the recent college er of the Year Award. He was also a fi- they had one loss, as did at least three football season and the success enjoyed nalist for numerous national quarter- other teams in the country. Yet under by our own University of Utah football back awards. Brian’s story is actually the BCS system, this unbeaten Utah team. a very inspirational one. Late in the team was denied an opportunity to First, I want to mention that a while 2005 season, he suffered what is, in even play for the national champion- back, during last week’s festivities, I many cases, a career-ending injury ship. One has to wonder what more had the opportunity to meet with when he tore his ACL. This injury Utah could have done with its season members of the University of Utah forced him to sit out the entire 2006 in order to get into the national cham- Marching Band as they were in town to season. Then, in the first game of the pionship game. It is interesting that march and perform in the inauguration 2007 season, he was injured again and the former Utah coach under whom parade. missed two more games. But he was Coach Whittingham served, Urban I want to publicly recognize the able to finish the season, leading the Meyer, had a championship team. We members of the Church of Jesus Christ Utes to a winning record and an im- all admired him. He was a great coach of Latter Day Saints in Ashburn, VA, pressive victory over Navy in the Poin- at Utah and one of the greatest coaches who offered their homes to these musi- settia Bowl. He returned for his senior in America today. Unfortunately, the cians and the band, allowing them the season, fully healed and ready to take answer to this question is even more once-in-a-lifetime opportunity to per- the team on his shoulders for what disheartening than the question itself: form for the President of the United proved to be a historic season. nothing. The fact of the matter is that States of America. The band would not One of the most popular members of the Utah team was left out of the na- have been able to make it to Wash- the Ute squad has been kicker and tional championship picture, not due ington had it not been for the gen- punter Louie Sakoda who, in each of to any competitive shortcoming, but erosity of these private citizens who the last three seasons, was the Moun- because the BCS system categorically housed them and took care of them and tain West Special Teams Player of the excluded them from consideration. fed them. I appreciate their willingness Year and named to several All-America Under the BCS, the champions of six to help some of my follow Utahns. teams. Nicknamed ‘‘King Louie,’’ this athletic conferences receive automatic My meeting with the band out in 5-foot-9, 178-pound team captain is bids to play in the five most lucrative Ashburn reminded me of what a won- something of a celebrity in Salt Lake and prestigious bowl games. Collec- derful year it has been for sports fans City. Last year, he offered himself as a tively, those six conferences include 66 in my State. I wish to once again pub- date for a campus charity auction and of the 119 teams in NCAA Division I licly extend my congratulations to the drew the highest bid of any item on football. So, in short, nearly half of all Utah Utes on an outstanding season. sale—though NCAA restrictions kept college football teams begin the season On January 2, the Utes capped an him from actually going on the date. virtually left out of the BCS picture, undefeated season with a 31-to-17 vic- His parents, according to news stories, yet the BCS still wants to call the win- tory in the Sugar Bowl over a highly can join any pregame party in the ner of its championship game the ‘‘na- favored Alabama team. Under the scru- parking lot outside Rice Eccles Sta- tional champion.’’ I don’t know about tiny of the national spotlight, Utah dium if they just mention their son’s you, Mr. President, but that strikes me played with poise and precision, silenc- name. He has also lent his celebrity to as odd. ing the naysayers who claimed they an ad campaign started by Utah First Of course, it needs to be acknowl- could not compete with a national pow- Lady Mary Kaye Huntsman aimed at edged that teams from non-BCS con- erhouse such as Alabama. combating teenage drinking and driv- ferences can play their way into a BCS Alabama had been rated No. 1 much ing. Louie can be seen in TV commer- game. The University of Utah did so of the season. This was Utah’s second cials in Utah urging teens and anyone both this year and in 2004. In other undefeated season in 5 years, dem- who’s been drinking to ‘‘punt the years, teams from Boise State and Ha- onstrating that school’s football team keys.’’ waii have earned bids to play BCS bowl deserves to be considered among the Indeed, the entire University of Utah games. But in doing so, these teams country’s elite college football pro- football team has become the toast of had to overcome serious competitive grams. every town in my State—even among disadvantages. For example, it is vir- In particular, I want to congratulate those who typically root for the Utah’s tually impossible for a school from a Coach Kyle Whittingham, who, on Jan- other fine football programs. They non-BCS conference to get a BCS bid uary 13, was named National Coach of have also become one of the most without going undefeated in the reg- the Year by the American Football talked about teams in college football ular season, and even that is not a Coaches Association. What an honor. nationwide. guarantee. Yet this past season, each

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00015 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.020 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1118 CONGRESSIONAL RECORD — SENATE January 30, 2009 of the six BCS conference champions not intentionally stifle competition or I yield the floor. had at least one regular season loss— systemically favor specified competi- The PRESIDING OFFICER. The Sen- three of them had two or more. Two tors. Specifically, in the words the ator from Rhode Island. non-BCS teams—Utah and Boise Sherman Antitrust Act, no ‘‘contract, Mr. WHITEHOUSE. Mr. President, State—were undefeated after the 2008 combination, or conspiracy’’ may be let me say, first, what a pleasure it is regular season. In addition, Texas undertaken to exclude competitors. to hear the distinguished Senator from Christian University, another non-BCS In my opinion, it is quite probable Utah speak about his beautiful State team, had only one loss and was higher that the BCS violates the Sherman re- and his beloved Utes. in the BCS rankings than two of the quirements. In 2003, I chaired a series f conference champions with automatic of Judiciary Committee hearings to in- berths. Yet of these three teams, only vestigate the antitrust implications of EXECUTIVE COMPENSATION AND Utah was invited to play in a BCS the BCS. I stated at that time that I THE BAILOUTS believed the BCS was anticompetitive game. Mr. WHITEHOUSE. Thank you, Mr. These are the disadvantages non-BCS and in dire need of reform. Shortly thereafter, the BCS added another bowl President. I have a different topic teams must face just to get into one of today. This speech is about a stove, a five prestigious BCS bowl games. While game and, to some extent, expanded the field of eligibility. However, as this jet, and $40 billion. mere participation is an uphill battle, The stove belonged to Margarita the system makes it virtually impos- past season demonstrates, these changes leave much to be desired in Fuentes, and a local deputy sheriff in sible for a non-BCS team to win the na- Florida repossessed it for the finance tional championship. The BCS relies on terms of fairness and competition. Utah Attorney General Mark Shurtleff company. The case went all the way to a combination of polls and computer the Supreme Court, and became the fa- formulas to determine its rankings. shares this view and is consulting with lawyers and investigators to determine mous case of Fuentes v. Shevin, which For decades, these polls have almost every first year law student has to invariably tended to favor teams from whether the BCS system constitutes an antitrust violation. Indeed, it appears read. the bigger BCS conferences, evidenced The court held that you couldn’t by the fact that no team from an out- that litigation over this matter may be on the horizon. Also, on at least two take away Ms. Fuentes’ stove, not side conference has finished a season separate occasions, President Obama without giving her a hearing; that she atop a major college football poll since has publicly stated his concern about had a constitutional right to a hearing. 1984. So unless a team from a non-BCS the fairness of the BCS and his hope to The court stated: conference begins the season with a see the creation of a playoff system. [T]he constitutional right to be heard is a very high national ranking in the polls, Therefore, it is not unreasonable to basic aspect of the duty of government to they stand virtually no chance of get- predict that a Justice Department in- follow a fair process of decision-making ting ranked high enough to play in the vestigation into the potential antitrust when it acts to deprive a person of his pos- championship game, even if they go violations of BCS will be forthcoming. sessions. undefeated. This system excludes Mr. President, I would prefer that re- Important rule: The finance company teams like this year’s Utah team, forms take place without putting the may well have been right about the which began the season unranked and matter before the courts. In addition, stove, but the sheriff still cannot take spent the season shocking opponents given the many problems facing our property without due process. and exceeding expectations, from na- nation, I hope that the Justice Depart- That is the stove. Now the jet. tional championship contention. ment will not have to get involved in Citigroup has received billions and The flaws of the BCS system might this issue. And while some have pro- billions in Federal funds—$45 billion in not be so bad if it helped to clear what posed a legislative fix, this also would preferred stock purchases alone—to traditionally had been a muddled na- not be my preferred solution, though prevent Citigroup from failing. What tional championship picture. But un- ultimately, this may end up being the did they do? Bought a $50 million fortunately, that is not the case. In at only effective means of addressing French-made luxury private jet. least 6 out of the last 10 years, there these problems. Instead, I would hope It took the new Secretary of the has been substantial controversy over that those with the power to change or Treasury to personally talk them out the selection of the teams to play for eliminate the BCS, including NCAA of it, with a helpful push from our col- the championship. So the system is not President Myles Brand as well as the league, Senator LEVIN. And that’s not only biased, but ineffective as well. university presidents and the con- all. Here’s how Maureen Dowd reports Mr. President, the BCS system is ference commissioners in the BCS con- they spent the money on executive of- anti-competitive, unfair, and, in my ferences, will hear the public outcry fice furnishings at Merrill Lynch, just opinion, un-American. I am not just against the BCS and voluntarily work bought by Citigroup: saying that because my team was to reform the system to ensure that, as treated unfairly. I am making the case . . . big-ticket items included curtains for in every other American sport, cham- $28,000, a pair of chairs for $87,000, fabric for that many teams are not treated fair- pionships are decided on the field and a ‘‘Roman Shade’’ for $11,000, Regency chairs ly. In no other sport in this country are not in arbitrary polls and computer for $24,000, six wall sconces for $2,700, a champions selected by arbitrary and calculations. While a playoff seems $13,000 chandelier in the private dining room biased polls and computer ranking sys- like the most natural solution, other and six dining chairs for $37,000, a ‘‘custom tems. Much worse, the BCS ensures means may be available. coffee table’’ for $16,000, an antique commode that the millions of dollars paid to the That said, I want to say that I be- ‘‘on legs’’ for $35,000, and a $1,400 ‘‘parchment participants of these prestigious games lieve the University of Utah football waste can.’’ remain concentrated among a few team are champions in the truest sense A lot of executive compensation goes elitist conferences. Such exclusionary of the word. They won on the field to the same executives who led their practices put teams from non-BCS con- against worthy competition in a year companies into this mess, while reap- ferences at a monetary, recruiting and when literally everyone else proved un- ing vast sums. competitive disadvantage. This may able to do so. Once again, I want to For example, Wells Fargo, which re- not only be unfair in the normative congratulate University President Mi- ceived $25 billion in bailout money, is sense, it may very well violate our na- chael Young, Coach Whittingham and planning layoffs but is keeping its CEO tion’s antitrust laws. every member of the team for what and chairman who were paid $12.5 mil- In 1984, in NCAA v. Board of Regents proved to be an exhilarating and tre- lion and nearly $23 million in 2007, re- of the University of Oklahoma, the Su- mendous season. I also congratulate spectively. preme Court determined that NCAA is other teams that qualified for bowl JP Morgan received $25 billion in not exempt from the requirements of games who were winners and deserve bailout money, but is keeping its CEO the Sherman Antitrust Act. That being certainly the plaudits of all of us. who was paid $28 million in 2007. the case, college football, like most I hope this helps to bring this matter Capital One bought and closed other industries in this country, must to a head. I hope we can change this GreenPoint mortgage—1,900 layoffs, conduct business in a manner that does system that is an unjust system. 1,900 families where someone lost a

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00016 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.015 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1119 job—received about $3.5 billion in bail- By contrast, nothing has been done us in the economy. But the fact that out money, and is keeping its CEO who to address the deferred compensation they provide that vital public utility was paid more than $73 million in 2007. obligations of Citigroup, Goldman function is no reason to say these other And this week’s New York Times re- Sachs, Bank of America, JP Morgan, things cannot also be adjusted. That ports that despite ‘‘crippling losses, and other banks that have been given a does not mean they should not have to multimillion dollar bailouts and the lifeline. change their ways. passing of some of the most important As shown on this chart, you will see As I said, the only way to change names in the business,’’ an estimated the estimated debt to executives at their ways, it appears, is to make them $18.4 billion in bonuses were paid out to Goldman Sachs is actually bigger than change. So, I will shortly be filing leg- Wall Street employees in 2008—the the capital injection. It is an aston- islation to create a Temporary Eco- sixth highest total in history—in what ishing sum of money. nomic Recovery Oversight Court, a was most certainly not the sixth best I should throw in my own home State forum that could provide due process, year in Wall Street’s history. of Rhode Island. We are a small State. short of a full bankruptcy filing, and In other words, firms on the brink of Here is our share of it: $140 million. empower Government to take reason- extinction that were saved only by the That is our entire budget for our two 4- able steps to restrain the lavish self-in- U.S. taxpayer still saw fit to reward year State colleges for a year—the en- dulgences to which these masters of people who created the mess with over tire State budget for them; $140 million the universe have become accustomed. $18 billion for their performance this out of Rhode Island to pay for $40 bil- I am also exploring other ways of ad- past year. President Obama rightly lion in tax-dodged, deferred executive dressing this critical issue. called this shameful. compensation. But I encourage colleagues of mine So that jet is symbolic of a Wall As people who are on the floor will Street culture of unrestrained self-in- who are interested in this issue to talk recall, that is more than the entire to me about how we can make this dulgence that now, because of the bail- program we spent so many hours fight- outs, begins to happen at public ex- right. There are technical issues. If ing about for the U.S. auto industry. anybody is interested, please contact pense and shows no signs of abating. Remember that. That was sort of $18 And now we come to the $40 billion. me. I think this is a bipartisan issue. I According to an analysis by the Wall billion to $35 billion. This is $40 billion, do not think a Republican is any Street Journal, the executive-deferred and nobody is even talking about it. happier about $40 billion in deferred ex- compensation obligations of bailed out And we fought for days about whether ecutive compensation coming out of Wall Street firms amount to more than to support our own domestic auto in- the public fisc than a Democrat, and if $40 billion. As shown on this chart: dustry. we do not take action, the swelling Banks Owe Billions To Executives. Fi- Well, I think the jet shows that the river of the righteous and proper anger nancial giants getting injections of Wall Street culture of lavish self-indul- of the American people will rise up, Federal cash owed their executives gence is not likely to change. But and overswell its banks. I have lived more than $40 billion for past years’ something very important has through difficult economic situations pay and pensions as of the end of 2007, changed, and that is the taxpayers are in Rhode Island, where public anger a Wall Street Journal analysis shows. now starting to pay for it, and they are overswelled its banks. It is not a good By the way, this whole executive-de- not going to stand for it for long. place to be. If something is going to change, we ferred compensation scheme is nothing The people’s confidence in their Gov- but a big tax dodge to begin with. in Congress have to change it; we need to do it now, and we need to do it in a ernment’s ability to treat them fairly Banks participating in the bailout will be justifiably compromised, and program carried these obligations on way that sticks. That’s where Ms. Fuentes’ stove comes in. we will have lost their confidence, the their books, and the cash from our old-fashioned way: We will have earned The constitutional right to be heard is a bailout is being used to pay them, or it. will be used to pay them. Mr. Presi- basic aspect of the duty of government to The poet William Blake spoke of dent, $40 billion in taxpayer dollars follow a fair process of decision-making when it acts to deprive a person of his pos- times when we should not let our sword will end up in the pockets of the very sessions. sleep in our hand. American Govern- executives who tanked those firms. ment gives us a vital sword, one that How much is $40 billion? Here is how That is the case of Ms. Fuentes’ can trim away the lavish excesses of it breaks down State by State based on stove. the lotus years, and treat all Ameri- population. If it takes due process before poor If you are the Governor of California, Ms. Fuentes can have her stove taken cans fairly, not create a favored tax- you can look forward to $4.780 billion away, then it takes due process before payer-supported Wall Street class that as your State’s share of that $40 billion certain adjustments can be made to the is treated differently than workers in bailout. obscene and grotesque executive com- Michigan and elsewhere. I submit we If you are, as the wonderful new Pre- pensation paid for by bailouts. must not let that sword sleep in our siding Officer is, from Colorado, you It takes some due process before any- hands. can look forward to $636 million as thing can be done about this $40 billion I thank the Presiding Officer and your State’s share of deferred execu- in executive-deferred compensation. yield the floor. tive compensation for Wall Street. Without a due process forum, we The PRESIDING OFFICER. The Sen- If you are from Missouri, as is the have unilaterally disarmed the powers ator from Missouri. distinguished Senator in the Chamber, of Government that can make those (The remarks of Mrs. MCCASKILL per- you are looking at $768 million as Mis- adjustments. That is a choice we make taining to the introduction of S. 360 are souri taxpayers’ share of the $40 billion to unilaterally disarm the powers of printed in today’s RECORD under bailout. Government that could do something ‘‘Statements on Introduced Bills and Generally, when a company goes into about the $40 billion. Joint Resolutions.’’) bankruptcy, the executives who are I submit if we don’t make some rea- Mrs. MCCASKILL. Mr. President, I sonable adjustments, that failure will owed the $40 billion in deferred com- yield the floor and I suggest the ab- so damage public credibility and faith pensation would have become general sence of a quorum. unsecured creditors and have to wait in in the entire exercise; in addition to The PRESIDING OFFICER. The line with other such general unsecured being profoundly unfair, in fact, that it clerk will call the roll. creditors. will eliminate or diminish our ability Experts report that in most cases to manage the crisis. People will not The legislative clerk proceeded to this means losing all deferred com- want to hear any longer from us. call the roll. pensation or recovering pennies on the The ordinary due process forum for Mr. REID. Mr. President, I ask unan- dollar. Executives at Lehman Brothers, troubled companies, bankruptcy court, imous consent that the order for the which was allowed to go into bank- is not the best forum for this, for the quorum call be rescinded. ruptcy, will probably lose out on their very reasons that corporations need The PRESIDING OFFICER. Without deferred compensation. rescue: they serve a public utility for objection, it is so ordered.

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00017 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.024 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1120 CONGRESSIONAL RECORD — SENATE January 30, 2009 TRIBUTE TO DR. JOHN LOGAN ‘‘I’ve LIVED the research,’’ he said, grin- late director of building and grounds left a ning. room without relating an anecdote or witti- Mr. MCCONNELL. Mr. President, I He came to this area as a brand new physi- cism that had everyone laughing. rise today to honor a well-respected cian, hanging out his shingle in Sebree in his John himself could fill a book, but because Kentuckian, Dr. John Logan. Mr. wife Jackie’s home county. space is limited we’ll just say he played a Logan’s outstanding dedication to Ken- Probably no one in his native Edmonson major role in many things we take for grant- tucky history is truly immeasurable as County had expected him or his brother Tom ed here, including the spacious YMCA, the is his devotion to the Commonwealth to become doctors. Their family was thick Henderson Fine Arts Center, the Depot/Tour- itself. with attorneys, but the siblings opted to fol- ism Center—and the hospital’s Level II Neo- low the medical path. natal Intensive Care Unit that makes it pos- Recently the Gleaner in Henderson, John’s mentor was a country doctor named KY, published a story highlighting Dr. sible to care for most of the tiniest and sick- Sidney Farmer, who hired him at age 14 to est babies right here. Logan’s new book about the extraor- clean his offices. When John got a driver’s li- He’s not happy about everything related to dinary history of Methodist Hospital in cense, he drove Farmer to make house calls. the hospital. It just irks him that while the Henderson, KY. The story highlights A year after the youthful family practi- facility regularly performs cardiac catheter- not only Dr. Logan’s allegiance to the tioner came to these parts, he was intro- izations and has a staff of 24 cardiologists as medical industry but his unknown tal- duced to a dynamic 31-year-old named well as a dedicated telemetry unit, it hasn’t ents as an archivist. Dr. Logan was Charles ‘‘Chuck’’ Jarrett, who had accepted yet been able to obtain a state Certificate of the post of Methodist Hospital executive di- able to compile such a vast amount of Need to permit angioplasty procedures or rector. stent placements here. research for his new book because, as Chuck, who was a former Marine and ‘‘a He’ll keep pursuing that, no doubt, as he dreamer’’ who had the unique ability to per- he says, he ‘‘lived’’ it. Having been in- has, at 71, no immediate plans to retire. suade others to dream with him, soon was volved with the hospital since 1962, Dr. Nor does he plan a sequel to the history. plotting a tall, gleaming modern hospital on Logan has certainly seen his share of ‘‘I’ve done the first 60 years. Somebody that hill off Twelfth and Elm Streets. history firsthand. Without Dr. Logan’s else will have to do the next 60.’’ When he died, far too young, in 1973, the in- remarkable efforts to preserve history, stitution had four sprawling wings and was the triumphant story of this great Ken- just as he had envisioned it. f tucky institution would be lost forever. Since that time, his successors Ron Chap- Mr. President, I ask my colleagues to man and Bruce Begley have kept the dreams SPENCER COUNTY FFA DAIRY join me in honoring Dr. Logan as a alive and the hospital is flanked by a North JUDGING TEAM true patriot and Kentuckian whose leg- Tower and South Tower. Mr. MCCONNELL. Mr. President, I acy will forever be remembered, and I In his book, John fleshes out what other- wise could be the bare bones of history. For rise today to honor the Spencer County further ask unanimous consent to have instance, he relates that in addition to being FFA Dairy Judging Team for winning the full article printed in the CONGRES- a popular veteran pediatrician and hunter, the 2008 National FFA Dairy Cattle SIONAL RECORD. Dr. John Jenkins is a pig farmer. Judging Contest. This team is com- There being no objection, the mate- The author says Jenkins once told him, ‘‘If prised of four outstanding young la- rial was ordered to be printed in the I work very hard practicing medicine, I can dies: Whitney Owen, Cassandra Peter- RECORD, as follows: almost cover my losses in pig farming.’’ son, Kelli Smitha, and Michella White. [From the Gleaner, Jan. 17, 2009] John also writes about the late Dr. M.G. Veal, a fellow with a well developed sense of After countless hours spent preparing TIME TO TELL THE STORY: LOCAL PHYSICIAN humor and hobby sideline as a trumpet play- for the Kentucky FFA Dairy Judging ADMINISTERS DOSE OF HISTORY WITH NEW er in several area bands. He smoked, though BOOK ON METHODIST HOSPITAL Contest, they were awarded top honors he knew better, and ‘‘His trademark was a at the State competition last August. (By Judy Jenkins) cigarette with an inch of ashes hanging.’’ It wasn’t so much a want as it was a need. (I can vouch for that mischievous sense of The team then had the privilege of rep- And it wasn’t so much a need as it was a humor. Once he passed me in the hospital resenting the Commonwealth at the deep conviction that time wouldn’t wait for- lobby and loudly congratulated me. When I, 2008 National FFA Dairy Cattle Judg- ever and something important could be lost. confused, asked why he was congratulating ing Contest in Indianapolis, IN, where That’s why, five years ago, Dr. John Logan me, he said, ‘‘I just heard that you’re expect- they were again victorious. began a long-contemplated project that re- ing your tenth child, Mrs. Jenkins!’’ Heads Founded in 1928 as the Future Farm- quired the patience of a saint, more than a turned, believe me. For the record, I only ers of America, the group that is today few detective skills, and the excavation of had three kids at the time and the fourth known as the National FFA Organiza- nearly half a century of his own memories. and last was born a year later). The result, just off the press, is the 192- As I read the book, I was reminded of the tion brings together students, teachers, page ‘‘History of Methodist Hospital, Hen- tragic losses the hospital medical staff has and members of the agribusiness com- derson, Ky., 1948–2008.’’ suffered over the years. munity to promote agricultural edu- The hardcover volume, published by Among them, the death of the young and cation. In Kentucky, the National FFA McClanahan Publishing House, Inc. of Lyon much-revered Dr. W.B. Blue, who practiced Organization has over 15,000 members County, Ky., is chock full of photographs and in Henderson’s East End. He died in a vehic- spread across 145 chapters. And over doesn’t merely chronicle the development of ular accident here. the hospital from a simple, one-story brick And there was Dr. Elton House, who was 24,000 Kentucky middle- and high- building with 12 doctors and 35 employees to reaching the height of his career when he school students are enrolled in agricul- the towering complex it is today. drowned during an outing on Barkley Lake. tural education programs. It also pays tribute to the legions of people And Dr. Joe McGruder, who had brought so Agriculture is obviously an impor- of all ages, races and socio-economic back- many babies into the world, lost his life tant sector of the economy for my grounds who have done everything from while scuba diving on vacation. State, and I am proud of the many polishing the floors and baking the bread to John is proud of the fact that he unearthed young people and adults who work with utilizing space age diagnostic technology photos of every Methodist Hospital physi- and performing life-saving procedures. cian—but one—who was on the original staff, the National FFA Organization in Ken- ‘‘I decided it was time to tell the story,’’ or who had served at least 20 years. tucky to ensure that the Bluegrass says John, who has served as the hospital’s His only failure was Dr. Ira Cosby, an State remains at the forefront of agri- medical director for 22 years, been president original staff member who regularly made cultural education and innovation for of the medical staff, and completed 19 terms house calls and was never known to drive years to come. Members are always as chief of the medical staff. faster than 35 mph. recognizable during their visits to our His thought, he said, was, ‘‘If I don’t tell it, John and his faithful helpers searched high it’s gone.’’ and low, contacting relatives and doing ev- Nation’s Capitol by their distinctive He couldn’t let that happen because ‘‘It’s a erything possible to come up with a likeness blue jackets. great story. That this hospital all these of the doctor, but had to admit defeat. By securing a first-place finish at the years has survived across the river from hos- There are numerous photos of hospital em- national competition, the Spencer pitals twice our size. That says we’re doing ployees who have made their own marks on County FFA Dairy Judging Team now something right.’’ the institution. They include the late Bill has the opportunity to represent Amer- Because he has been associated with the Beck, director of materials management. He ica this summer at the International hospital since 1962 and has witnessed its was a soft-spoken man who never minded Dairy Judging Contest in Scotland. growth and advancements, he didn’t have to going above and beyond the call of duty to spend all of his time in a basement room honor a request. FFA is known for producing many of with dusty boxes of scrapbooks and loose James ‘‘Rip’’ Van Winkle was like that our Nation’s future leaders, and I won’t clippings. too, and I don’t recall an instance when the be surprised to see that trend continue

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00018 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.017 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1121 based on the success Whitney, Cas- ators, Senate staff and Senate candidates doned is not even willing to face the sandra, Kelli, and Michella have al- and reviewed 1,510 reports. same justice system to which every ready achieved. I know my fellow Sen- f other American must answer? In fact, ators join me in wishing them the best HOLDER NOMINATION Holder admitted during his confirma- of luck in their future endeavors. tion hearing that he did not adequately Mr. INHOFE. Mr. President, I believe f acquaint himself with the facts of the I am speaking on behalf of Americans case. The United States Senate should SELECT COMMITTEE ON ETHICS who value their second amendment not allow such injustice to go unan- 2008 ANNUAL REPORT personal right to own their own fire- swered. Mrs. BOXER. Mr. President, I ask arms. I also believe I am speaking on Equally egregious, Holder was Dep- unanimous consent to have printed in behalf of Americans who favor justice uty Attorney General in an adminis- the RECORD the 2008 Annual Report of over political patronage. Finally, I be- tration which granted clemency to 16 the Select Committee on Ethics. lieve I am speaking on behalf of Ameri- members of the Armed Forces of Na- There being no objection, the mate- cans who realize we are in a war on ter- tional Liberation, or FALN. This is a rial was ordered to be printed in the ror and want to continue the strong ef- group which not only carried out vio- RECORD, as follows: forts to bring terrorists to justice. I am lent protests, FALN set off bombs sev- ANNUAL REPORT FOR 2008—SELECT COMMITTEE opposed to the appointment of Eric eral times in New York City and Chi- ON ETHICS Holder to be the next Attorney General cago and were convicted for conspir- The Honest Leadership and Open Govern- of the United States. acies to commit robbery, bomb-mak- ment Act of 2007 (the ‘‘Act’’) calls for the Se- I take particular interest in this ing, and sedition. The Clinton adminis- lect Committee on Ethics of the United nomination because I, as well as the tration granted clemency despite oppo- States Senate to issue an annual report no voters of the State of Oklahoma, feel later than January 31 of each year providing sition from the U.S. Attorney’s Office, strongly that the rights conferred upon FBI, and most importantly, the vic- information in certain categories describing us by the second amendment of the its activities for the preceding year. Re- tims of FALN terrorist activities. ported below is the information describing Constitution guarantee an individual Finally, we continue to be in a war the Committee’s activities in 2008 in the cat- freedom that no government regulation on terror, however, Holder is an indi- egories set forth in the Act: can take away. Eric Holder’s record vidual who is opposed to the military (1) The number of alleged violations of and his true beliefs about the second commissions which have tried terror- Senate rules received, from any source [in amendment are clear. In a brief filed in ists and is opposed to the Guantanamo 2008], including the number raised by a Sen- the Heller case, Holder joined other Bay detention facility for detaining ator or staff of the Committee: 85. (This fig- past Department of Justice officials by terrorists. This Senate and the Amer- ure does not include 13 alleged violations saying: ‘‘[t]he Second Amendment Does from the previous year carried into 2008.) ican people should know that since Oc- (2) The number of alleged violations that Not Protect Firearms Possession or tober 2001, the U.S. has detained al- were dismissed— Use That Is Unrelated To Participation most 800 al-Qaida and Taliban combat- (A) For lack of subject matter jurisdiction In a Well-Regulated Militia.’’ The brief ants at GTMO. Currently, 60 more are or in which, even if the allegations in the also stated that the ‘‘recognition of an ready for transfer or release to another complaint are true, no violation of Senate expansive individual right to keep and country, 70 have either been tried or in rules would exist: 52. (This figure includes 5 bear arms for private purposes will matters originating in the previous year.) process, and 130 are a high threat to (B) Because they failed to provide suffi- make it more difficult for the govern- the U.S. Since 2002, more than 525 de- cient facts as to any material violation of ment to defend present and future fire- tainees have departed GTMO for other the Senate rules beyond mere allegation or arms laws.’’ During his confirmation countries. Today, there are approxi- assertion: 21. (This figure includes 4 matters hearing, Eric Holder noted the impor- mately 240 detainees at GTMO. If originating in the previous year.) tance of the Heller decision and recog- GTMO is no longer a prison, some U.S. (3) The number of alleged violations in nized it as precedent. But I certainly domestic or overseas prison will have which the Committee staff conducted a pre- do not believe that the decision in Hell- to house these men while they await a liminary inquiry: 10. (Th(s figure includes 4 er has changed the underlying beliefs matters from the previous year carried into habeas hearing and trial. All the while, 2008.) held by Eric Holder, and his leadership the military detention facilities at (4) The number of alleged violations that as the chief lawyer of the United GTMO meet the highest international resulted in an adjudicatory review: 0. States will be a detriment to the gun standards. The Pentagon spends $2.5 (5) The number of alleged violations that ownership rights of American citizens. million each year on Korans, prayer the Committee dismissed for lack of substan- I am also very uncomfortable with rugs, and special meals for prisoners. tial merit. 4. (This figure includes 1 matter Mr. Holder’s judgment and record on There are on average two lawyers for from the previous year carried into 2008). pardons and clemency during the Clin- (6) The number of private letters of admo- every detainee at GTMO. He believes nition or public letters of admonition issued: ton administration. He apparently our military commissions currently in 2. chose to circumvent the standard proc- place would have to be substantially (7) The number of matters resulting in a ess by which all pardons are considered revamped and even holds the position disciplinary sanction: 0. and granted, and clouded this process that U.S. interrogation techniques (8) Any other information deemed by the with the appearance of impropriety. If should be published for the world to Committee to be appropriate to describe its the pardon of Mark Rich was not im- activities in the previous year. see. Between January 4 and February 25, 2008 propriety, and I believe it was, then it For at least these reasons, I cannot the Committee staff conducted mandatory was at the very least extreme neg- vote to support the nomination of an ethics training for all Senate employees: 8 ligence, and such negligence has no individual who holds opinions on a training sessions for Members, 19 training place in any level of government. Mark wide range of issues which I find so ob- sessions for staff, and 1 training session for Rich, whom many label a tax evader, is jectionable and objectionable to my Member spouses. In addition, the Committee in fact even more than that. Rich was constituents. I will be voting a defini- conducted 11 new employee training sessions indicted in 1983 on 65 counts of not only tive no on the Holder nomination. during the year; 17 ethics seminars for Mem- tax evasion, but also fraud, racket- ber DC offices, state offices, Senate commit- f eering, and trading with the enemy. tees, and outside delegations; 2 mandatory CHILDREN’S HEALTH INSURANCE campaign related ethics briefings; and 1 Sen- Rich fled to Switzerland before he ator-elect orientation session and 1 training could stand trial, which is perhaps the PROGRAM session for transition staff. most egregious element of this case— Mr. NELSON of Florida. Mr. Presi- In 2008, Committee staff handled 15,555 he was a fugitive and a regular fixture dent, I wish to express my optimism telephone inquiries for ethics advice and on the FBI’s Ten Most Wanted List. that with a new administration and a guidance. How can one justify recommending a new Congress, we will finally be able to In 2008, the Committee wrote 1,264 ethics advisory letters and responses, including 869 pardon, bypass the Department of Jus- achieve what was left unfinished last advisories concerning gifts or travel. tice and the hundreds of individuals year: the expansion of the Children’s The Committee issued 3,395 letters con- who worked to bring Mark Rich to jus- Health Insurance Program. Though we cerning financial disclosure filings by Sen- tice, when the man who is being par- are in difficult economic times, we can

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00019 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.018 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1122 CONGRESSIONAL RECORD — SENATE January 30, 2009 never afford to squander our Nation’s but also have suggestions and rec- earth’s temperature does not stay the same most precious resource—our children. ommendations as to what Congress can all the time. There are so many scientists From 1994 to 2000 I served as the do now to tackle this problem and find and people who disagree with Al Gore, but if State of Florida’s elected treasurer and solutions that last beyond today. I ask we disagree, we are labeled ‘‘flat-earthers’’ and ‘‘Holocaust Deniers.’’ insurance commissioner. During my unanimous consent to have today’s let- My question for [conservatives] is this. tenure, I oversaw the implementation ters printed in the RECORD. Why did you not approve drilling for oil of the SCHIP program, or the Healthy There being no objection, the mate- when you [controlled Congress and the White Kids Program, as it is known in Flor- rial was ordered to be printed in the House]? ida. There is no doubt in my mind that RECORD, as follows: You want to help me? A person with three jobs and struggling with gas prices? I have this program works. Nationwide, in You are asking Idahoans to write about gas not had a vacation since March of 2007. I can- 1997 23.3 percent of low-income children prices? You mean you do not know? I think not even take a one-day vacation to Jackpot were uninsured. By 2006, this number Washington D.C. may as well be registered as anymore. I work all seven days a week, get another planet because I think your col- had dropped to 15.4 percent. no weekends and I still struggle to pay gas leagues are so far from reality of the rest of However, much remains to be done. prices of about $15 a day, not a week, a day! the people it is absolutely outrageous. The rate of uninsured children in Flor- Drill here, drill in ANWR, drill in America! [Some of] your colleagues [suggest that] ida is nearly 19 percent—the second AARON, Boise. Americans use alternative [modes] of trans- worst in the country. Around 8.6 mil- portation and that it is a good thing that gas Thank you, Senator, for your sincere con- lion children in America are uninsured; prices force people to take the bus, ride cern for Idaho residents. I am 58 next month nearly 900,000 of these children are in bikes, or walk to their destination because it and on disability from a very severe fire I helps reduce global warming. Florida. One of the reasons I support was trapped in several years ago. Though I I have something [for you to share with this bill so strongly is that it expands do get an income, this is where it goes: coverage and offers incentives for your colleagues]: I receive $625 a month. States like Florida to find and enroll I am a driver for a living. I deliver prod- 1. $200 a month mobile home space rent. uncovered children. During difficult ucts right here in Boise. I have to drive I 2. $156 a month mortgage payments for my have no choice. I am also a salesman, and a mobile home . . . which without the owner of economic times such as these, there night supervisor. I live in Idaho. I do not are more children in need of the CHIP the mobile home, I would not be on my way have the option of riding the bus. I cannot to being a first time home owner! program, not fewer. walk my deliveries or ride my bike with my 3. $48 a month mobile home insurance. While I am very satisfied with the products. 4. $40 a month vehicle insurance . . . it is progress this legislation would make in I find it absolutely insulting [to think this a 1988 Plymouth Voyager van that I have had covering children, I do have concerns suggestion can be taken seriously. Too many since 1988. about its financing. I want to empha- liberals] love these high gas prices because 5. $39 phone bill. which was supposed to re- size that increasing the tobacco tax is they want to use it as an excuse to make us duced several months ago through my social live how they want us to live to fight so- an appropriate funding mechanism for worker, and still remains at the normal price called global warming, while [they make no and I do not have long distance. this legislation. It will have significant sacrifices in their own personal travel behav- 6. $30-40 electricity monthly; I do not have positive impacts on health, save untold iors.] That is eco-socialism in my opinion. an air conditioner for summer but do open millions in health care costs, and re- Senator Crapo, I have three jobs!! Three my windows and use my ceiling fans that duce the prevalence of smoking among jobs, and I am still having problems fueling helps. the children whom this bill is designed up. I have had to open credit card accounts 7. $125 and up in winter for gas to run my to protect. However, I am concerned for the first time in my life, and my debt is heater monthly. That is after I receive fuel that the tax is applied unequally across still going up! assistance which for some reason only lasts You would think with three jobs and three different tobacco products. 1–2 months and only use the heater to warm paychecks for one person! I am not married, up the area so can start my wood stove Under the current legislation, there no kids. I would be starving with fuel prices which is usually one-half hour. is a much higher tax increase for large if I had a family. I am just barely paying my So, if I am lucky, all I can afford to do is cigars than for other tobacco products. bills on time as they are, to about $1,500 a put up to $20 a month in gas, which gives me This is no small problem for Florida— month, not including gas prices! almost 1/4 tank and that has to last the 90 percent of large cigars in the U.S. Starting in 2005 till 2007, I did very well fi- month. I have medical problems that mean are either manufactured or imported nancially. I was saving up and putting many trips to the doctor and pharmacy, and through Florida, accounting for ap- money away in my savings account. I loved with such a low amount of gas I have to de- myself for putting money away. This month proximately 3,000 jobs. While I remain pend on others for rides when I run out of [June 2008], I had to take one-quarter of my gas. Thank you for your sincere concern and opposed to placing an unfair tax burden life savings out of my bank to pay for bills, we are all hoping and praying that gas will on any one product, I still feel we have including gas because the price skyrocketed once again come down to where people like a strong bill on the whole, one that from $3 to $4 a gallon in one month. This is me can afford to purchase more. will improve health care dramatically outrageous! LORETTA, Nampa. for America’s children. I think it is 80 percent the government’s fault for this and 20 percent the oil compa- From your letter on gas prices that you f nies. The only thing the oil companies are sent me, you are starting to understand that IDAHOANS SPEAK OUT ON HIGH doing wrong is speculating the price of oil the Congress holds most of the blame for ENERGY PRICES for really dumb reasons. high oil (and thus gas) prices. Congress has Congress has done this because [legislation failed to act in the thirty years since the Mr. CRAPO. Mr. President, in mid- to drill for oil in ANWR has been blocked be- last gas crisis, continually failing to take re- June, I asked Idahoans to share with cause of environmental concerns that do not sponsible action to make sure domestic sup- me how high energy prices are affect- exist.] Congress is more worried about a stu- plies are developed and used to reduce de- ing their lives, and they responded by pid deer than they are about [the lives of pendence on foreign oil. the hundreds. The stories, numbering Americans]? More worried about the mating It should be clear that the single most del- well over 1,200, are heartbreaking and season of the caribou than they are about eterious action of Congress over the last touching. While energy prices have the economy? My jobs? My gas prices? My forty years was the Environmental Protec- dropped in recent weeks, the concerns bills? My lifestyle? tion Act. It has desperately needed revision You will not allow drilling off shore? Well, since the early seventies and because it was expressed remain very relevant. To re- did you know that China is drilling for oil off not, the economic impact on America has spect the efforts of those who took the the coast of Florida? But we cannot. Why? been extreme. The inability to build domes- opportunity to share their thoughts, I This is outrageous! tic gas refineries, increase domestic oil pro- am submitting every e-mail sent to me Do not listen to those radical environ- duction and take advantage of resources in through an address set up specifically mentalists. They were wrong about the sec- ANWR are only a few of the unintended and for this purpose to the CONGRESSIONAL ond Ice Age in the 70s. When I was kid in disastrous impacts of that act. An environ- RECORD. This is not an issue that will school in the 1980s, my teachers told me by mentalist has only to write a single letter to be easily resolved, but it is one that de- the year 1999, New York would be underwater cause the price of any such proposal to and Los Angeles would be a bunch of Islands. escalade exponentially. The latest case of serves immediate and serious atten- It has not happened. Of course, the earth’s the proposed nuclear reactor in Idaho is an tion, and Idahoans deserve to be heard. temperature changes and jumps over time. example. One man writing one letter can Their stories not only detail their The earth’s climate changes all the time, has cause the waste of hundreds of thousands of struggles to meet everyday expenses, been since the earth cooled and formed. The dollars to ‘‘prove’’ the lack of environmental

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00020 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.001 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1123 impacts of such a proposal. The price of a and other basic commodities seem to cost at I wonder what the cost of corn will be now? house in Idaho has risen by 10–15 percent, for least 25 percent more than they did a year But it is not just food issues, but the proc- instance, because of the ludicrous and tech- ago. Last year I was able to find milk for essing issues as well. nically flawed environmental studies and re- $2.29 gallon; now milk costs close to $4.00/gal- Wind Power should be promoted as well. actions on the spotted owl. lon. Healthy bread costs close to $4.00/loaf. But a Nuclear Power Plant is much easier on Still, no action in Congress to alleviate the As a family, we certainly have not received the eyes than 1000 wind towers, and not as situation. We simply need someone to stand a COLA to offset these price increases. up and take the actions necessary to replace As middle-class professionals (my husband susceptible to the changes in the wind. political correctness with what used to be is a forester) and as parents, the drain on our Coal alternatives should be looked at as common sense. budget means belt-tightening for any of ‘‘fun well. We need to check if the benefits we can So the bottom line, Senator, is that Con- things’’ like vacation trips. Additionally, we gain from technology like coal gasification gress bears the responsibility to stop passing have experienced a health crisis (and have are valid and have low impact. Some of the stupid laws and start reigning in those that met our catastrophic limits). I now must claims you hear and read about look prom- are hurting the nation’s ability to do the commute to Fruitland (140 miles round trip) ising. But as I am learning with Ethanol, right things rather than the politically cor- every 2 weeks for chemo; in the fall I will rect things. Do you have the courage to there may be some significant costs to chase need to commute 5 days a week for radiation this type of technology. start? for 6 weeks! (My doctor cavalierly denied me ROBERT, Meridian. two prescriptions for drugs since they are But the short of it—we need to develop our also available OTC. ‘‘They only cost a few energy and become more independent. The You asked what the high gas prices are dollars. ‘‘ He casually shrugged off my re- amount of jobs created would be incredible doing to me. It has become very difficult to quest for RXs. Well, the two drugs cost more in the process. You want a better health care even do normal things. I cannot afford to go than $30 altogether. I do not think that the system and less unemployment and less gov- up town and buy necessary things. Since I upper-middle-class and upper-class have a ernment care programs—just set the energy am on Social Security Disability, my sister clue that there is an exponential difference companies loose and see this economy re- and I have been living off my money. Since between a few bucks (a latte) and $30 (a bound in a heartbeat. These energy compa- my sister does not have a car and I cannot chance to visit a museum or movie, or half- nies can afford health care plans and benefits afford to buy one for her, nor could I afford way fill up a gas tank to make it to a chemo the gas. She would love to go to work. How for their workers. Our current policies are would she get there? Idaho, and particularly session!) killing us—and I really hope there are I believe that our tax system rewards the this area has a really horrible public trans- enough in Congress to turn this around. We rich on the backs of the poor and middle portation system. It truly is a disgrace to have been shooting ourselves in the foot for class. I believe that oil companies and own- our state. My sister walks as much as pos- more than 20 years. ers of stocks are making fortunes as the lit- sible. Our nation needs to stop depending on tle guy suffers. Good Luck. foreign oil. I love all the animals and have I believe we should take global warning se- STEPHEN, Rigby. tried to protect them as much as possible, riously and allow tax credits for the develop- but we need to start taking care of our fami- ment of alternative energy. We need to take lies first. Thank you for inviting me to share how recycling very seriously. We also need to be The oil companies are making over the the increased gas prices has affected my a world economic partner on a fair playing profit margin; that is disgusting by itself. I daily life. I have begun carpooling and elimi- do not trust one thing they say or do. There- field (Kyoto convention), quit out-sourcing to countries that do not provide the labor nating unnecessary trips, and have really fore, we need to have alternative fuel. The saved a lot of money, not to mention reduc- wind can run electricity. The air can fuel a protections we do to our workers, and build respectful relationships among all peoples ing the pollution my daily commute had car, water can do both, after seeing the pic- been producing. Though it has not always tures of a car that runs on air. America, the and all cultures—as a first step to world peace and understanding and a step away been convenient, I look at it as one small greatest country in the world needs to step step that I can do to help our world for fu- up to the plate. Oil companies need to step from the ugliness of war. ture generations. You opposed the proposed up to the plate before they become the dino- I also believe that limiting population climate change legislation that would fur- saurs. Therefore, we need to drill. Do it. growth and sharing the world’s resource’s ther hike gas prices up, though I called and Many families like mine are being dev- equably is the only way we will ever estab- astated by the high gasoline prices which lish peace on earth. wrote your office to ask you to support it. I makes high food prices we cannot afford. Locally, for our family, what have been the feel that the higher the gas prices are, the Thank you for your time effects of high energy costs? Higher food and more people will look to limit extraneous MARIAN, Nampa. medical costs, loss of job, reduced school trips which will help reduce emissions programs for my children, dwindled savings, (greenhouse gases). I also think that the This is in response to a solicitation from ‘‘making do’’ with older cars and housing more you reduce the prices on gas, people Senator Crapo regarding personal stories on needs, fewer amenities, no vacation. will use more gas and will choose not to con- how high energy prices are affecting lives. Glad you asked. serve. LYNN, Fruitvale. Greed is the source of most of the world’s Measures I want you to support would be evil. I know I sound like an ideologue, but to develop a larger, stronger infrastructure please read on. I read your letter sent out today. Glad to of public transportation so that people do It is hard to disaggregate the effects of the hear that at least one of our Senators in high cost of energy from other economic hits Washington gets it. I hope there are more of not have to worry about getting to work the our family is experiencing. When construc- you in DC that can support the policies you traditional way of driving singly in their tion activity slowed in Valley and Adams want to support in your letter. own vehicle. We should encourage production County, wage earning families left our val- We do need to start drilling again in the and development of non-fossil fuels, such as leys looking for jobs elsewhere. US and offshore. We need to make sure that cellulosic ethanol, which does not take from The resulting reduced school enrollment we take precautions to avoid damage to the the food supply, but does give work to both (now compounded by the end of Craig- environment. We cannot sacrifice one for the the scientific developers as well as the labor- Wyden) in our districts led me to being one other. But we must start drilling again, and ers necessary to move this idea to fruition. of the teachers RIF’d from the Council do so in a respective manner of Mother Na- Also, you should support solar, geothermal, School District. Fortunately, I found work ture. and wind production. If measures could be part-time in the McCall School District. Un- And we are going to need some new refin- discovered that would allow for the long- fortunately, this 70-mile, round-trip com- ing capability. Again, do it new technology term safe storage of nuclear waste, as well as mute (in my 2000 140,000+ mile Dodge AWD and with respect to our environment. Build safe practices of running plants on a daily Caravan—needed for unpredictable roads) it in Eastern Idaho—we have the space and basis, no matter the weather conditions (i.e., costs me $9.00–$12.00 a trip! I would like to we could use the jobs and economic boost. drought), keeping in mind the larger picture buy a more fuel efficient Subaru—but I can- Tough to get oil here, but if they need a of our environment, including fish and other not afford to.) place for it, bring it here. natural resources, I would be supportive of My school-age children suffer because pro- We must start the nuclear programs again. that method as well. I know these newer grams are being severely reduced—shop and We need to build some new reactors soon. I methods are not as easy or convenient as art are gone. Some high school courses will do not know for sure, but I am betting some just simply reducing gas prices, but your leg- only be offered every other year. Summer of our older reactors are getting long in the acy for truly caring about the environment tooth, and if they go off the grid, then what school for poor learners is truncated. Field would be something that would be worth the trips? Sports? Both are severely reduced. happens? Besides we need more power and extra work. How can our small-town children go out and money spent to renew our grid system. experience the world when there is not even We need to take a serious look at Ethanol. Thank you for reading this, even though it money for gas? I am not sure it is all it is being promoted to probably goes against what you are looking As consumers, our family lives so far from be. I am not sure the benefits outweigh all of for. ‘‘the source’’ that not only gas, but also milk the costs. With the flooding in the Midwest, SUSAN, Boise.

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00021 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.013 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1124 CONGRESSIONAL RECORD — SENATE January 30, 2009 ADDITONAL STATEMENTS H. Con. Res. 27. Concurrent resolu- structure, and equipment supporting United tion authorizing the use of the rotunda States military operations overseas; to the of the Capitol for a ceremony in honor Committee on Armed Services. REMEMBERING HARRY MAGNUSON of the bicentennial of the birth of By Mr. INOUYE: ∑ S. 359. A bill to establish the Hawaii Cap- Mr. CRAPO. Mr. President, on Janu- President Abraham Lincoln. ital National Heritage Area, and for other ary 24, a man whose life was intricately f purposes; to the Committee on Energy and woven into Idaho’s history passed on. Natural Resources. Harry Frank Magnuson, son of an EXECUTIVE AND OTHER By Mrs. McCASKILL: Italian immigrant mother and Polish COMMUNICATIONS S. 360. A bill to limit compensation to offi- immigrant father, was born in Idaho in The following communications were cers and directors of entities receiving emer- the early part of the 20th century in laid before the Senate, together with gency economic assistance from the Govern- ment; to the Committee on Banking, Hous- the small Idaho mining town of Wal- accompanying papers, reports, and doc- ing, and Urban Affairs. lace. As a young man, Harry sought uments, and were referred as indicated: By Mr. LEVIN: and obtained his education, first at the EC–554. A communication from the Senior S. 361. A bill for the relief of Guy Vang, University of Idaho. After completing Counsel for Regulatory Affairs, Office of Fi- Genevieve Chong Foung, Caroline Vang, and his military service with the U.S. Navy nancial Stability, Department of the Treas- Meline ‘‘Melanie’’ Vang; to the Committee during World War II, he obtained a ury, transmitting, pursuant to law, the re- on the Judiciary. master’s degree in business administra- port of a rule entitled ‘‘TARP Conflicts of In- By Mr. ROCKEFELLER (for himself, tion at Harvard University. Harry re- terest’’ (RIN1505–AC05) received in the Office Mr. WEBB, Mr. BROWN, Ms. MIKULSKI, of the President of the Senate on January 26, and Mr. SANDERS): turned to his hometown of Wallace, ID, 2009; to the Committee on Banking, Housing, S. 362. A bill to amend title 38, United and opened an accounting firm that and Urban Affairs. States Code, to improve the collective bar- was active for 60 years. At the time of EC–555. A communication from the Deputy gaining rights and procedures for review of his death, Harry Magnuson was known Secretary of the Interior and the General adverse actions of certain employees of the well beyond Idaho’s borders for his Counsel, Department of Commerce, trans- Department of Veterans Affairs, and for leadership, philanthropy and business mitting draft legislation entitled ‘‘The Alba- other purposes; to the Committee on Vet- acumen. tross and Petrel Conservation Act of 2009’’; erans’ Affairs. to the Committee on Environment and Pub- Harry was a devoted father and hus- f lic Works. band and committed man of the com- EC–556. A communication from the Chief of ADDITIONAL COSPONSORS munity. He was first and foremost an the Publications and Regulations Branch, In- Idahoan. His work brought him acco- ternal Revenue Service, Department of the S. 150 lades from the University of Idaho, Treasury, transmitting, pursuant to law, the At the request of Mr. LEAHY, the Gonzaga University, and Idaho State report of a rule entitled ‘‘Credit Rates on name of the Senator from Utah (Mr. University. In 1990, our State’s largest Tax Credit Bonds’’ (Notice 2009–15) received HATCH) was added as a cosponsor of S. newspaper, the Idaho Statesman, in the Office of the President of the Senate 150, a bill to provide Federal assistance named him Idaho Citizen of the Year. on January 28, 2009; to the Committee on Fi- to States for rural law enforcement nance. and for other purposes. He chaired the Idaho Centennial Com- EC–557. A communication from the Acting mission from 1987 to 1991. In 1999, Harry Assistant Secretary, Office of Legislative Af- S. 244 received the ‘‘Esto Perpetua’’ award fairs, Department of State, transmitting, At the request of Mr. BOND, the name from the Idaho State Historical Soci- pursuant to law, a report relative to the ex- of the Senator from Kansas (Mr. ROB- ety, an award that honors an individ- tension of the waiver of restrictions con- ERTS) was added as a cosponsor of S. ual’s lifetime contributions to the his- tained in Section 907 of the FREEDOM Sup- 244, a bill to expand programs of early tory of Idaho. One of the projects clos- port Act of 1992; to the Committee on For- childhood home visitation that in- est to his heart was the Cataldo Mis- eign Relations. EC–558. A communication from the Assist- crease school readiness, child abuse sion in north Idaho, the preservation of ant Secretary for Civil Rights, Department and neglect prevention, and early iden- which he contributed mightily over the of Education, transmitting, pursuant to law, tification of developmental and health years. the annual report of the Office for Civil delays, including potential mental My thoughts and prayers are with Rights for fiscal years 2007–2008; to the Com- health concerns, and for other pur- Colleen Magnuson and their children at mittee on Health, Education, Labor, and poses. ∑ Pensions. this difficult time. S. 252 EC–559. A communication from the Direc- f tor of Legislative Affairs, Office of the Direc- At the request of Mr. AKAKA, the MESSAGES FROM THE PRESIDENT tor of National Intelligence, transmitting, name of the Senator from Alaska (Mr. BEGICH) was added as a cosponsor of S. Messages from the President of the pursuant to law, a report relative to the va- cancy, designation of acting officer and nom- 252, a bill to amend title 38, United United States were communicated to ination for the position of Director of Na- States Code, to enhance the capacity of the Senate by Mrs. Neiman, one of his tional Intelligence, received in the Office of the Department of Veterans Affairs to secretaries. the President of the Senate on January 28, recruit and retain nurses and other f 2009; to the Select Committee on Intel- ligence. critical health-care professionals, to EXECUTIVE MESSAGES REFERRED improve the provision of health care f As in executive session the Presiding veterans, and for other purposes. Officer laid before the Senate messages INTRODUCTION OF BILLS AND S. 262 from the President of the United JOINT RESOLUTIONS At the request of Mr. CASEY, the States submitting sundry nominations The following bills and joint resolu- name of the Senator from Alaska (Mr. which were referred to the appropriate tions were introduced, read the first BEGICH) was added as a cosponsor of S. committees. and second times by unanimous con- 262, a bill to improve and enhance the (The nominations received today are sent, and referred as indicated: operations of the reserve components printed at the end of the Senate pro- By Mrs. FEINSTEIN (for herself, Mr. of the Armed Forces, to improve mobi- ceedings.) SPECTER, and Mr. FEINGOLD): lization and demobilization processes f S. 357. A bill to allow for certiorari review for members of the reserve components of certain cases denied relief or review by the of the Armed Forces, and for other pur- MESSAGE FROM THE HOUSE United States Court of Appeals for the poses. Armed Forces; to the Committee on the Ju- At 2:35 p.m., a message from the f House of Representatives, delivered by diciary. Ms. Niland, one of its reading clerks, By Mr. CORNYN (for himself, Mr. STATEMENTS ON INTRODUCED LIEBERMAN, Mr. PRYOR, and Mrs. BILLS AND JOINT RESOLUTIONS announced that the House has agreed MCCASKILL): to the following concurrent resolution, S. 358. A bill to ensure the safety of mem- By Mrs. FEINSTEIN (for herself, in which it requests the concurrence of bers of the United States Armed Forces Mr. SPECTER, and Mr. FEIN- the Senate: while using expeditionary facilities, infra- GOLD):

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00022 Fmt 0637 Sfmt 0634 E:\CR\FM\G30JA6.019 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1125 S. 357. A bill to allow for certiorari The bill is supported by the Amer- S. 359 review of certain cases denied relief or ican Bar Association, the Military Offi- Be it enacted by the Senate and House of Rep- review by the United States Court of cers Association of America, and the resentatives of the United States of America in Appeals for the Armed Forces; to the National Institute of Military Justice. Congress assembled, Committee on the Judiciary. Robinson Everett, the former Chief SECTION 1. SHORT TITLE. Mrs. FEINSTEIN. Mr. President, Judge of the U.S. Court of Military Ap- This Act may be cited as the ‘‘Hawai‘i Cap- today I am pleased to join with Sen- peals, the predecessor to the Court of ital National Heritage Area Establishment ators SPECTER and FEINGOLD in intro- Appeals for the Armed Forces, also Act’’. ducing the Equal Justice for U.S. Serv- supports the bill. SEC. 2. DEFINITIONS. ice Members Act. The Act would elimi- It’s long past time we give them the In this Act: nate an inequity in current law by al- same rights as the American citizens (1) HERITAGE AREA.—The term ‘‘Heritage they fight, and sometimes die, to pro- Area’’ means the Hawai‘i Capital National lowing all court-martialed U.S. Heritage Area established by section 3(a). servicemembers who face dismissal, tect. I urge my colleagues to support this (2) LOCAL COORDINATING ENTITY.—The term discharge or confinement for a year or ‘‘local coordinating entity’’ means the local more to petition the United States Su- important legislation to give equal jus- coordinating entity for the Heritage Area preme Court for discretionary review tice to our U.S. servicemembers. designated by section 3(d). through a writ of certiorari. Mr. President, I ask unanimous con- (3) MANAGEMENT PLAN.—The term ‘‘man- The bill is a simple one, and would do sent that the text of the bill be printed agement plan’’ means the management plan the following: allow a writ of certiorari in the RECORD. for the Heritage Area required under section There being no objection, the text of 5. to be filed in any case in which the the bill was ordered to be printed in (4) MAP.—The term ‘‘map’’ means the map U.S. Court of Appeals for the Armed the RECORD, as follows: entitled ‘‘Hawai‘i Capital National Heritage Forces has denied review; and allow a S. 357 Area Proposed Boundary’’, numbered T17/ writ of certiorari to be filed in any case 90,000B, and dated January 2009. Be it enacted by the Senate and House of Rep- in which the U.S. Court of Appeals for (5) SECRETARY.—The term ‘‘Secretary’’ resentatives of the United States of America in means the Secretary of the Interior. the Armed Forces denied a petition for Congress assembled, extraordinary relief. (6) STATE.—The term ‘‘State’’ means the SECTION 1. SHORT TITLE. State of Hawai‘i. In our civilian courts today, all per- This Act may be cited as the ‘‘Equal Jus- son convicted of a crime, if they lose tice for United States Military Personnel SEC. 3. HAWAI‘I CAPITAL NATIONAL HERITAGE on appeal, have a right to petition the Act of 2009’’. AREA. (a) ESTABLISHMENT.—There is established U.S. Supreme Court for discretionary SEC. 2. CERTIORARI TO THE UNITED STATES in the State the Hawai‘i Capital National review. Even enemy combatants have COURT OF APPEALS FOR THE ARMED FORCES. Heritage Area. the right to direct appellate review in (a) IN GENERAL.—Section 1259 of title 28, (b) BOUNDARIES.—The Heritage Area shall the Supreme Court. United States Code, is amended— consist of portions of Honolulu and the Hon- In contrast, however, our men and (1) in paragraph (3), by inserting ‘‘or de- olulu Ahupua‘a, as depicted on the map. women in uniform do not share this nied’’ after ‘‘granted’’; and (c) AVAILABILITY OF MAP.—The map shall same right. Our military personnel can (2) in paragraph (4), by inserting ‘‘or de- be on file and available for public inspection apply to the U.S. Supreme Court only nied’’ after ‘‘granted’’. in the appropriate offices of the National if the U.S. Court of Appeals for the (b) TECHNICAL AND CONFORMING AMEND- Park Service and the Hawai‘i Capital Cul- MENT.—Section 867a(a) of title 10, United Armed Forces actually conducts a re- tural Coalition. States Code, is amended by striking ‘‘The (d) LOCAL COORDINATING ENTITY.—The view of their case or grants a petition Supreme Court may not review by a writ of Hawai‘i Capital Cultural Coalition shall be for extraordinary relief. That only hap- certiorari under this section any action of the local coordinating entity for the Herit- pens about 10 percent of the time. the Court of Appeals for the Armed Forces in age Area. In other words, in 90 percent of their refusing to grant a petition for review.’’. SEC. 4. DUTIES AND AUTHORITIES OF THE LOCAL case, our U.S. servicemembers are pre- COORDINATING ENTITY. vented from ever seeking or obtaining By Mr. INOUYE: (a) DUTIES OF THE LOCAL COORDINATING EN- direct review from the Supreme Court. S. 359. A bill to establish the Hawai’i TITY.—To further the purposes of the Herit- This disparity is not limited to our Capital National Heritage Area, and for age Area, the local coordinating entity civilian and military court systems. A other purposes; to the Committee on shall— similar disparity exists within our Energy and Natural Resources. (1) prepare and submit a management plan Mr. INOUYE. Mr. President, I rise to for the Heritage Area to the Secretary in ac- military court system relief. The Gov- introduce a bill that will establish the cordance with section 5; ernment routinely has the chance to Hawaii Capital National Heritage Area. (2) assist units of local government, re- petition the Supreme Court for review National Heritage Areas allow resi- gional planning organizations, and nonprofit of adverse court-martial rulings in any dents, government agencies, nonprofit organizations in implementing the approved management plan by— case where the charges are severe groups and private partners to collabo- enough to make a punitive discharge (A) carrying out programs and projects ratively plan and implement programs that recognize, protect, and enhance impor- possible. But our military personnel do that recognize and preserve America’s not share the same rights to petition tant resource values in the Heritage Area; defining landscapes. Of the 40 National (B) establishing and maintaining interpre- the Supreme Court as the military Heritage Areas established, only a few tive exhibits and programs within the Herit- prosecutors on the other side of the are west of the Mississippi River. This age Area; aisle. will be Hawaii’s first official Heritage (C) developing recreational and edu- This is wrong, and this inequity was Area. cational opportunities in the Heritage Area; recently noted by the American Bar I believe that Hawaii’s unique cul- (D) increasing public awareness of, and ap- Association, which passed a resolution tural make up coupled with its histor- preciation for, natural, historic, scenic, and cultural resources of the Heritage Area; calling on Congress on fix this long- ical significance will surely attract standing ‘‘disparity in our laws gov- (E) protecting and restoring historic sites both residents and visitors to this spe- and buildings in the Heritage Area that are erning procedural due process.’’ cial place. The proposed area is rich consistent with the themes of the Heritage Every day, our U.S. service personnel with cultural sites, museums, historic Area; place their lives on the line in defense buildings, art galleries, performing arts (F) ensuring that signs identifying points of American rights. It is unacceptable venues, ethnic markets, and res- of public access and sites of interest are for us to continue to routinely deprive taurants that will surely provide the posted throughout the Heritage Area; and our men and women in uniform one of average person with an experience of a (G) promoting a wide range of partnerships those rights—the ability to petition lifetime. among governments, organizations, and indi- their Nation’s highest court for direct This makes Hawaii Capital Cultural viduals to further the purposes of the Herit- relief. It is a right given to common age Area; district an ideal candidate for a Herit- (3) consider the interests of diverse units of criminals in our civilian courts, to the age Area designation. government, businesses, organizations, and Government, and even to some of the There being no objection, the text of individuals in the Heritage Area in the prep- terrorists who we hope to prosecute as the bill was ordered to be printed in aration and implementation of the manage- war criminals. the RECORD, as follows: ment plan;

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00023 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.030 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1126 CONGRESSIONAL RECORD — SENATE January 30, 2009 (4) conduct meetings open to the public at to protect, enhance, interpret, fund, manage, tation of the State, tribal, and local aspects least semiannually regarding the develop- and develop the Heritage Area; of the management plan; and ment and implementation of the manage- (5) include an inventory of the natural, his- (F) the local coordinating entity has dem- ment plan; toric, cultural, educational, scenic, and rec- onstrated the financial capability, in part- (5) for any fiscal year for which the local reational resources of the Heritage Area re- nership with others, to carry out the plan. coordinating entity receives Federal funds lated to the stories and themes of the region (3) ACTION FOLLOWING DISAPPROVAL.—If the under this Act— that should be protected, enhanced, man- Secretary disapproves the management plan (A) submit to the Secretary an annual re- aged, or developed; under paragraph (1), the Secretary— port that describes, for the fiscal year— (6) recommend policies and strategies for (A) shall advise the local coordinating en- (i) the accomplishments, expenses, income, resource management, including the devel- tity in writing of the reasons for the dis- amounts, and sources of matching funds; opment of intergovernmental and inter- approval; (ii) the amounts leveraged with Federal agency agreements to protect the natural, (B) may make recommendations to the funds and sources of the leveraged funds; and historic, cultural, educational, scenic, and local coordinating entity for revisions to the (iii) grants made to any other entities; recreational resources of the Heritage Area; management plan; and (B) make available to the Secretary for (7) describe a program of implementation (C) not later than 180 days after the receipt audit all information relating to the expend- for the management plan, including— of any proposed revision of the management iture of Federal funds and any matching (A) performance goals; plan from the local coordinating entity, funds for the fiscal year; and (B) plans for resource protection, enhance- shall approve or disapprove the proposed re- (C) require, in all agreements authorizing ment, and interpretation; and vised management plan. the expenditure of Federal funds by other or- (C) specific commitments for implementa- (4) AMENDMENTS.—The Secretary shall ap- ganizations, that the organizations receiving tion of the management plan that have been prove or disapprove each amendment to the the Federal funds make available to the Sec- made by the local coordinating entity or any management plan that the Secretary deter- retary for audit all records and other infor- government, organization, business, or indi- mines would make a substantial change to mation relating to the expenditure of the vidual; the management plan in accordance with funds; and (8) include an analysis of, and rec- this subsection. (6) encourage, by appropriate means, eco- ommendations for, ways in which Federal, (5) USE OF FUNDS.—The local coordinating nomic development that is consistent with tribal, State, and local programs may best be entity shall not use Federal funds authorized the purposes of the Heritage Area. coordinated to carry out the purposes of this by this Act to carry out any amendments to (b) AUTHORITIES.—The local coordinating Act, including recommendations for the role the management plan until the Secretary entity may, subject to the prior approval of of the National Park Service and other Fed- has approved the amendments. the Secretary, for the purposes of preparing eral agencies associated with the Heritage and implementing the management plan for Area; SEC. 6. DUTIES AND AUTHORITIES OF THE SEC- RETARY. the Heritage Area, use Federal funds made (9) include an interpretive plan for the Her- available under this Act to— itage Area; and (a) TECHNICAL AND FINANCIAL ASSIST- (1) make grants to the State or a political (10) include a business plan that— ANCE.— subdivision of the State, nonprofit organiza- (A) describes the role, operation, financing, (1) IN GENERAL.—On the request of the local tions, and other persons; and functions of— coordinating entity, the Secretary may pro- (2) enter into cooperative agreements with, (i) the local coordinating entity; and vide to the local coordinating entity tech- or provide technical assistance to, the State (ii) each of the major activities contained nical and financial assistance on a reimburs- or a political subdivision of the State, non- in the management plan; and able or nonreimbursable basis, as determined profit organizations, Federal agencies, and (B) provides adequate assurances that the by the Secretary, to develop and implement other interested parties; local coordinating entity has the partner- the management plan. (3) hire and compensate staff; ships and financial and other resources nec- (2) PRIORITY ACTIONS.—In providing assist- (4) obtain money or services from any essary to implement the management plan ance under this subsection, the Secretary source, including under any other Federal for the Heritage Area. shall give priority to actions that assist in— law or program; (c) TERMINATION OF FUNDING.—If the man- (A) conserving the significant natural, his- (5) contract for goods or services; and agement plan is not submitted to the Sec- toric, cultural, and scenic resources of the (6) support activities of partners and any retary in accordance with this Act, the local Heritage Area; and other activities that— coordinating entity shall be ineligible to re- (B) providing educational, interpretive, (A) further the purposes of the Heritage ceive additional funding under this Act until and recreational opportunities consistent Area; and the date on which the Secretary approves with the purposes of the Heritage Area. (B) are consistent with the approved man- the management plan. (3) COOPERATIVE AGREEMENTS.—The Sec- retary may enter into cooperative agree- agement plan. (d) APPROVAL OF MANAGEMENT PLAN.— ments with the local coordinating entity and (c) PROHIBITION ON THE ACQUISITION OF (1) IN GENERAL.—Not later than 180 days REAL PROPERTY.—The local coordinating en- after the date of receipt of the management other public or private entities for the pur- tity shall not use Federal funds made avail- plan under subsection (a), the Secretary, in poses of carrying out this subsection. able under this Act to acquire real property consultation with the Governor of the State (b) EVALUATION.— or any interest in real property. and any applicable tribal government, shall (1) IN GENERAL.—Not later than 3 years be- SEC. 5. MANAGEMENT PLAN. approve or disapprove the management plan. fore the date on which authority for Federal (a) IN GENERAL.—Not later than 3 years (2) CRITERIA FOR APPROVAL.—In deter- funding terminates for the Heritage Area after the date on which funds are made avail- mining whether to approve the management under section 10, the Secretary shall— able to carry out this Act, the local coordi- plan, the Secretary shall consider whether— (A) conduct an evaluation of the accom- nating entity shall submit to the Secretary (A) the local coordinating entity rep- plishments of the Heritage Area; and for approval a management plan for the Her- resents the diverse interests of the Heritage (B) prepare a report with recommendations itage Area. Area, including governments, natural and for the future role of the National Park (b) REQUIREMENTS.—The management plan historical resource protection organizations, Service, if any, with respect to the Heritage shall— educational institutions, businesses, commu- Area. (1) describe comprehensive policies, goals, nity residents, and recreational organiza- (2) EVALUATION COMPONENTS.—An evalua- strategies, and recommendations for— tions; tion conducted under paragraph (1)(A) (A) conveying the heritage of the region; (B) the local coordinating entity has af- shall— and forded adequate opportunity for public and (A) assess the progress of the local coordi- (B) encouraging long-term resource protec- governmental involvement, including work- nating entity with respect to— tion, enhancement, interpretation, funding, shops and public meetings, in the prepara- (i) accomplishing the purposes of this Act management, and development of the Herit- tion of the management plan; for the Heritage Area; and age Area; (C) the resource protection and interpreta- (ii) achieving the goals and objectives of (2) take into consideration existing State, tion strategies contained in the management the approved management plan for the Herit- county, and local plans in the development plan, if implemented, would adequately pro- age Area; and implementation of the management tect the natural, historic, and cultural re- (B) analyze the Federal, State, local, and plan; sources of the Heritage Area; private investments in the Heritage Area to (3) include a description of actions and (D) the management plan would not ad- determine the leverage and impact of the in- commitments that governments, private or- versely affect any activities authorized on vestments; and ganizations, and individuals have agreed to Federal or tribal land under applicable laws (C) review the management structure, take to protect, enhance, and interpret the or land use plans; partnership relationships, and funding of the natural, historic, scenic, and cultural re- (E) the Secretary has received adequate as- Heritage Area for purposes of identifying the sources of the Heritage Area; surances from the appropriate State, tribal, critical components for sustainability of the (4) specify existing and potential sources of and local officials, the support of which is Heritage Area. funding or economic development strategies necessary to ensure the effective implemen- (3) REPORT.—

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00024 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.029 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1127 (A) IN GENERAL.—Based on the evaluation (1) IN GENERAL.—The Federal share of the payers to help you survive? You want conducted under paragraph (1)(A), the Sec- cost of any activity provided assistance or a the people at your financial institution retary shall prepare a report with rec- grant under this Act shall not exceed 50 per- to have a job tomorrow? Then you are ommendations for the future role of the Na- cent of the total cost of the activity. going to have to limit everyone’s pay tional Park Service, if any, with respect to (2) FORM OF NON-FEDERAL SHARE.—The non- the Heritage Area. Federal share— at your company to the same salary (B) REQUIRED ANALYSIS.—If the report pre- (A) shall be from non-Federal sources; and the President of the United States pared under subparagraph (A) recommends (B) may be in the form of in-kind contribu- makes. Is that so unreasonable? It is that Federal funding for the Heritage Area tions of goods and services fairly valued. eight times the median household in- be reauthorized, the report shall include an SEC. 10. TERMINATION OF AUTHORITY. come in the United States of America— analysis of— The authority of the Secretary to provide $400,000 a year. I don’t think that (i) ways in which Federal funding for the financial assistance under this Act termi- sounds like a bad deal. Should these Heritage Area may be reduced or eliminated; nates on the date that is 15 years after the people be making more than the Presi- and date of enactment of this Act. (ii) the appropriate time period necessary dent of the United States? Now, really, to achieve the recommended reduction or By Mrs. MCCASKILL: should they? They should not be mak- elimination. S. 360. A bill to limit compensation ing more than the President of the (C) SUBMISSION TO CONGRESS.—On comple- to officers and directors of entities re- United States. So every executive tion of the report, the Secretary shall sub- ceiving emergency economic assistance going forward could not make more mit the report to— from the Government; to the Com- than $400,000 a year, and they have to (i) the Committee on Energy and Natural mittee on Banking, Housing, and limit that executive compensation for Resources of the Senate; and everyone in their company until they (ii) the Committee on Natural Resources of Urban Affairs. the House of Representatives. Mrs. MCCASKILL. Mr. President, I pay back every dime to the taxpayers. could not agree more with my col- Now, once they are off the public SEC. 7. RELATIONSHIP TO OTHER FEDERAL AGENCIES. league from Rhode Island. There are a dole, once the taxpayers aren’t footing (a) IN GENERAL.—Nothing in this Act af- lot of things we need in this country the bill, then it is not as much our fects the authority of a Federal agency to right now. We need jobs. We need some- business what they get paid. But right provide technical or financial assistance thing to stimulate our economy. We now, they are on the hook to us, and under any other law. need certainty in the credit market. they owe us something other than a (b) CONSULTATION AND COORDINATION.—To But probably more than anything what fancy wastebasket and a $50 million the maximum extent practicable, the head of we need in this country right now is any Federal agency planning to conduct ac- jet. They owe us some common sense. tivities that may have an impact on the Her- confidence, confidence that we can face If any of them think it is a hardship to itage Area is encouraged to consult and co- down these problems and move forward take the salary of the President of the ordinate the activities with the Secretary like America has always done. United States, I dare them to say so and the local coordinating entity. What do we have instead of con- out loud right now because that is not (c) OTHER FEDERAL AGENCIES.—Nothing in fidence? Raw anger. I am mad. Every- going to instill confidence. this Act— one I work for is mad. Anger can be What is going to instill confidence is (1) modifies, alters, or amends any laws constructive. It can be channeling. I for the men and women in these com- (including regulations) authorizing a Federal am here today to say it is time we panies to realize it is time for everyone agency to manage Federal land under the ju- channel this anger and change the law. risdiction of the Federal agency; in this country to tighten their belt. It (2) limits the discretion of a Federal land We do not need anger. We have a bunch is time for everyone to realize we must manager to implement an approved land use of idiots on Wall Street who are kick- have our financial institutions survive plan within the boundaries of the Heritage ing sand in the face of the American but not with a culture that thinks it is Area; or taxpayer. My colleague talked about OK to kick the taxpayer in the shins (3) modifies, alters, or amends any author- some of them. Let me review. These fi- while they drink champagne and fly in ized use of Federal land under the jurisdic- nancial institutions, on the brink of fancy jets. It doesn’t work; not in the tion of a Federal agency. extinction, come to the American tax- United States of America. SEC. 8. PRIVATE PROPERTY OWNERS AND REGU- payer for hundreds of billions of dollars I ask my colleagues to sign on to this LATORY PROTECTIONS. at the very same time they think they Nothing in this Act— bill. I think it makes sense. We should (1) abridges the rights of any owner of pub- are going to buy a $50 million cor- have done it in the first place, but I lic or private property, including the right to porate jet. They are going to pay out don’t think any of us thought these refrain from participating in any plan, $18 billion in bonuses. They paid an av- guys were this stupid. I don’t think any project, program, or activity conducted erage of $2.6 million to every executive of us believed they would take billions within the Heritage Area; at the first 116 banks that got taxpayer of dollars of bonuses while their insti- (2) requires any property owner to permit money under TARP. Let me say that tutions were literally days from being public access (including access by any Fed- again: An average of $2.6 million in ex- wiped out, but they did, and we have eral, tribal, State, or local agency) to the ecutive pay to the folks at the first 116 property; learned our lesson. (3) modifies any provisions of Federal, trib- banks that got money from the tax- So I hope all my colleagues will sign al, State, or local law with regard to public payers. on this bill. I hope we can get it passed access to, or use of, private land; They don’t get it. These people are quickly so that from this day forward, (4) alters any land use regulation, approved idiots. You can’t use taxpayer money the President of the United States will land use plan, or other regulatory authority to pay out $18 billion in bonuses. Mer- make the same amount of money as of any Federal, tribal, State, or local agency; rill Lynch is unbelievable. They saved the executives of these companies who (5) conveys any land use or other regu- $3 billion to $4 billion from the pot of owe the taxpayers hundreds and hun- latory authority to the local coordinating money that was going to Bank of dreds of billions of dollars. entity; America, the sale that was going to (6) authorizes or implies the reservation or appropriation of water or water rights; close the first week in January. They By Mr. ROCKEFELLER (for him- (7) diminishes the authority of the State to always gave bonuses in January. Do self, Mr. WEBB, Mr. BROWN, Ms. manage fish and wildlife, including the regu- you know what these sneaky guys did? MIKULSKI, and Mr. SANDERS lation of fishing and hunting within the Her- They decided to give their bonuses in S. 362. A bill to amend title 38, itage Area; or December before the Bank of America United States Code, to improve the col- (8) creates any liability, or affects any li- took over. They paid out $3 billion to lective bargaining rights and proce- ability under any other law, of any private $4 billion in bonuses in December, and dures for review of adverse actions of property owner with respect to any person that quarter, Merrill Lynch lost $21 bil- certain employees of the Department injured on the private property. lion. What planet are these people on? of Veterans Affairs, and for other pur- SEC. 9. AUTHORIZATION OF APPROPRIATIONS. What could they be thinking about? poses; to the Committee on Veterans’ (a) IN GENERAL.—There is authorized to be appropriated to carry out this Act $10,000,000, So here is what this bill is going to Affairs. of which not more than $1,000,000 may be do. This is called the Cap Executive Of- Mr. ROCKEFELLER. Mr. President, I made available for any fiscal year. ficer Pay Act of 2009, and it is very rise today to reintroduce legislation (b) COST-SHARING REQUIREMENT.— simple. Going forward, you want tax- designed to fix the personnel laws that

VerDate Nov 24 2008 00:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00025 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.029 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1128 CONGRESSIONAL RECORD — SENATE January 30, 2009 cover the Department of Veterans Af- ending September 30, 2009, and for able until September 30, 2010: Provided, That fairs health care professionals, includ- other purpose; which was ordered to lie the Secretary may transfer these funds to ing registered nurses, physicians, phy- on the table; as follows: agencies of the Department, other than the Forest Service, for necessary replacement, sician assistants, dentists, podiatrists, Strike out all after the enacting clause and modernization, or upgrades of laboratories or insert the following: optometrists, and dental assistants. I other facilities to improve workplace safety am proud to have the support of my SECTION 1. SHORT TITLE. and mission-area efficiencies as deemed ap- colleagues, Senators WEBB, BROWN, MI- This Act may be cited as the ‘‘American propriate by the Secretary: Provided further, KULSKI, and SANDERS. Recovery and Reinvestment Act of 2009’’. that the Secretary shall provide to the Com- Whenever I visit VA Medical Centers SEC. 2. TABLE OF CONTENTS. mittees on Appropriations of the House and and meet with veterans, I hear wonder- The table of contents for this Act is as fol- Senate a plan on the allocation of these ful stories about nurses and other VA lows: funds no later than 60 days after the date of health care professionals who work DIVISION A—APPROPRIATIONS enactment of this Act. PROVISIONS long and hard to provide care to our OFFICE OF INSPECTOR GENERAL veterans. Too often, our health care TITLE I—AGRICULTURE, RURAL DEVEL- For an additional amount for ‘‘Office of In- OPMENT, FOOD AND DRUG professionals are working under real spector General’’, $5,000,000, to remain avail- ADMINISTRATION, AND RE- able until September 30, 2010, for oversight stress due to lack of funds or staff LATED AGENCIES and audit of programs, grants, and activities shortages. Almost 22,000 of the reg- TITLE II—COMMERCE, JUSTICE, funded under this title. SCIENCE, AND RELATED istered nurses caring for our veterans COOPERATIVE STATE RESEARCH, EDUCATION AGENCIES will be eligible to retire by 2010. Even AND ECONOMIC SERVICE more stunning is that 77 percent of all TITLE III—DEPARTMENT OF DEFENSE TITLE IV—ENERGY AND WATER DEVEL- RESEARCH AND EDUCATION ACTIVITIES resignations of nurses occur within the OPMENT For an additional amount for competitive first 5 years. This is a clear signal that TITLE V—FINANCIAL SERVICES AND grants authorized at 7 U.S.C. 450(i)(b), more must be done to retain VA nurses GENERAL GOVERNMENT $100,000,000, to remain available until Sep- and quality health care staff. Anyone TITLE VI—DEPARTMENT OF HOMELAND tember 30, 2010. involved in health care understands the SECURITY FARM SERVICE AGENCY TITLE VII—INTERIOR, ENVIRONMENT, important role that nurses play in the SALARIES AND EXPENSES AND RELATED AGENCIES quality of care and patient satisfac- TITLE VIII—DEPARTMENTS OF LABOR, For an additional amount for ‘‘Farm Serv- tion. HEALTH AND HUMAN SERV- ice Agency, Salaries and Expenses’’, The goal of this bill is to support the ICES, AND EDUCATION, AND $171,000,000, to remain available until Sep- VA health care professionals who work RELATED AGENCIES tember 30, 2010. hard to provide quality care to our vet- TITLE IX—LEGISLATIVE BRANCH AGRICULTURAL CREDIT INSURANCE FUND erans. The bill seeks to return to the TITLE X—MILITARY CONSTRUCTION AND PROGRAM ACCOUNT partnership agreement of the 1990s be- VETERANS AFFAIRS, AND For an additional amount for gross obliga- tween VA management and workforce. RELATED AGENCIES tions for the principal amount of direct and TITLE XI—STATE, FOREIGN OPER- guaranteed farm ownership (7 U.S.C 1922 et Flexible scheduling and basic fairness ATIONS, AND RELATED PRO- from management are key issues that seq.) and operating (7 U.S.C. 1941 et seq.) GRAMS loans, to be available from funds in the Agri- TITLE XII—TRANSPORTATION, HOUSING must be addressed to recruit and retain cultural Credit Insurance Fund Program Ac- AND URBAN DEVELOPMENT, a strong workforce. Morale is impor- count, as follows: farm ownership loans, AND RELATED AGENCIES tant in every workplace, and particu- $400,000,000 of which $100,000,000 shall be for TITLE XIII—HEALTH INFORMATION larly in a VA Medical Center. unsubsidized guaranteed loans and TECHNOLOGY West Virginia has four VA Medical TITLE XIV—STATE FISCAL STABILIZA- $300,000,000 shall be for direct loans; and op- Centers, each with a dedicated team of TION erating loans, $250,000,000 of which $50,000,000 health care professionals. I have met TITLE XV—RECOVERY ACCOUNTABILITY shall be for unsubsidized guaranteed loans with the nurses and other professionals AND TRANSPARENCY BOARD and $200,000,000 shall be for direct loans. For an additional amount for the cost of to hear their requests for flexible AND RECOVERY INDE- PENDENT ADVISORY PANEL direct and guaranteed loans, including the scheduling. I believe that we should re- cost of modifying loans, as defined in section store the management partnership and TITLE XVI—GENERAL PROVISIONS—THIS ACT 502 of the Congressional Budget Act of 1974, work hard to retain our dedicated team to remain available until September 30, 2010, DIVISION B—TAX, UNEMPLOYMENT, as follows: farm ownership loans, $17,530,000 of health professionals for our aging HEALTH, STATE FISCAL RELIEF, AND of which $330,000 shall be for unsubsidized veterans, and those newly returning OTHER PROVISIONS guaranteed loans and $17,200,000 shall be for from Iraq and Afghanistan, with both TITLE I—TAX PROVISIONS physical and mental wounds of war, direct loans; and operating loans, $24,900,000 TITLE II—ASSISTANCE FOR UNEM- of which $1,300,000 shall be for unsubsidized that deserve experienced VA care. PLOYED WORKERS AND guaranteed loans and $23,600,000 shall be for f STRUGGLING FAMILIES direct loans. TITLE III—HEALTH INSURANCE ASSIST- AMENDMENTS SUBMITTED AND Funds appropriated by this Act to the Ag- ANCE ricultural Credit Insurance Fund Program PROPOSED TITLE IV—HEALTH INFORMATION TECH- Account for farm ownership, operating, and NOLOGY SA 98. Mr. INOUYE (for himself and Mr. emergency direct loans and unsubsidized TITLE V—STATE FISCAL RELIEF BAUCUS) submitted an amendment intended guaranteed loans may be transferred among to be proposed by him to the bill H.R. 1, SEC. 3. REFERENCES. these programs: Provided, That the Commit- Except as expressly provided otherwise, making supplemental appropriations for job tees on Appropriations of both Houses of any reference to ‘‘this Act’’ contained in any preservation and creation, infrastructure in- Congress are notified at least 15 days in ad- division of this Act shall be treated as refer- vestment, energy efficiency and science, as- vance of any transfer. ring only to the provisions of that division. sistance to the unemployed, and State and NATURAL RESOURCES CONSERVATION SERVICE DIVISION A—APPROPRIATIONS local fiscal stabilization, for fiscal year end- WATERSHED AND FLOOD PREVENTION ing September 30, 2009, and for other pur- PROVISIONS OPERATIONS poses; which was ordered to lie on the table. That the following sums are appropriated, For an additional amount for ‘‘Watershed f out of any money in the Treasury not other- and Flood Prevention Operations’’, TEXT OF AMENDMENTS wise appropriated, for the fiscal year ending $275,000,000, to remain available until Sep- September 30, 2009, and for other purposes, tember 30, 2010. Mr. INOUYE (for himself and namely: SA 98. WATERSHED REHABILITATION PROGRAM Mr. BAUCUS) submitted an amendment TITLE I—AGRICULTURE, RURAL DEVEL- For an additional amount for the ‘‘Water- intended to be proposed by him to the OPMENT, FOOD AND DRUG ADMINIS- shed Rehabilitation Program’’, $120,000,000, bill H.R. 1, making supplemental ap- TRATION, AND RELATED AGENCIES to remain available until September 30, 2010. DEPARTMENT OF AGRICULTURE propriations for job preservation and RURAL DEVELOPMENT SALARIES AND EXPENSES creation, infrastructure investment, OFFICE OF THE SECRETARY For an additional amount for ‘‘Rural De- energy efficiency and science, assist- (INCLUDING TRANSFERS OF FUNDS) velopment, Salaries and Expenses’’, ance to the unemployed, and State and For an additional amount for the ‘‘Office of $110,000,000, to remain available until Sep- local fiscal stabilization, for fiscal year the Secretary’’, $300,000,000, to remain avail- tember 30, 2010.

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RURAL HOUSING SERVICE ance: Provided, That such funds shall be pro- provide service to the highest proportion of RURAL HOUSING INSURANCE PROGRAM ACCOUNT vided to States administering a school lunch rural residents that do not have sufficient program through a formula based on the access to broadband service: Provided further, For an additional amount for gross obliga- ratio that the total number of lunches served That priority for awarding such funds shall tions for the principal amount of direct and in the Program during the second preceding be given to project applications that dem- guaranteed loans as authorized by title V of fiscal year bears to the total number of such onstrate that, if the application is approved, the Housing Act of 1949, to be available from lunches served in all States in such second all project elements will be fully funded: Pro- funds in the Rural Housing Insurance Fund preceding fiscal year: Provided further, That vided further, That priority for awarding such Program Account, as follows: $1,000,000,000 of such funds, the Secretary may approve the funds shall be given to activities that can for section 502 direct loans; and $10,472,000,000 reserve by States of up to $20,000,000 for nec- commence promptly following approval: Pro- for section 502 unsubsidized guaranteed essary enhancements to the State Distrib- vided further, That the Department shall sub- loans. For an additional amount for the cost of uting Agency’s commodity ordering and mit a report on planned spending and actual direct and guaranteed loans, including the management system to achieve compat- obligations describing the use of these funds cost of modifying loans, as defined in section ibility with the Department’s web-based sup- not later than 90 days after the date of en- 502 of the Congressional Budget Act of 1974, ply chain management system: Provided fur- actment of this Act, and quarterly thereafter to remain available until September 30, 2010, ther, That of the funds remaining, the State until all funds are obligated, to the Commit- as follows: $67,000,000 for section 502 direct shall provide competitive grants to school tees on Appropriations of the House of Rep- loans; and $133,000,000 for section 502 unsub- food authorities based upon the need for resentatives and the Senate. sidized guaranteed loans. equipment assistance in participating SEC. 102. NUTRITION FOR ECONOMIC RECOV- schools with priority given to schools in ERY. (a) MAXIMUM BENEFIT INCREASES.— RURAL COMMUNITY FACILITIES PROGRAM which not less than 50 percent of the stu- (1) ECONOMIC RECOVERY 1-MONTH BEGINNING ACCOUNT dents are eligible for free or reduced price STIMULUS PAYMENT.—For the first month For an additional amount for the cost of meals under the Richard B. Russell National that begins not less than 25 days after the direct loans, loan guarantees, and grants for School Lunch Act and priority given to date of enactment of this Act, the Secretary rural community facilities programs as au- schools purchasing equipment for the pur- of Agriculture (referred to in this section as thorized by section 306 and described in sec- pose of offering more healthful foods and the ‘‘Secretary’’) shall increase the cost of tion 381E(d)(1) of the Consolidated Farm and meals, in accordance with standards estab- the thrifty food plan for purposes of section Rural Development Act, $127,000,000, to re- lished by the Secretary. 8(a) of the Food and Nutrition Act of 2008 (7 main available until September 30, 2010. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM U.S.C. 2017(a)) by 85 percent. RURAL BUSINESS—COOPERATIVE SERVICE FOR WOMEN, INFANTS, AND CHILDREN (WIC) (2) REMAINDER OF FISCAL YEAR 2009.—Begin- RURAL BUSINESS PROGRAM ACCOUNT For an additional amount for the special ning with the second month that begins not For an additional amount for the cost of supplemental nutrition program as author- less than 25 days after the date of enactment guaranteed loans and grants as authorized ized by section 17 of the Child Nutrition Act of this Act, and for each subsequent month by sections 310B(a)(2)(A) and 310B(c) of the of 1966 (42 U.S.C. 1786), to remain available through the month ending September 30, Consolidated Farm and Rural Development until September 30, 2010, $500,000,000, of 2009, the Secretary shall increase the cost of Act (7 U.S.C. 1932), $150,000,000, to remain which $380,000,000 shall be placed in reserve the thrifty food plan for purposes of section available until September 30, 2010. to be allocated as the Secretary deems nec- 8(a) of the Food and Nutrition Act of 2008 (7 essary, notwithstanding section 17(i) of such U.S.C. 2017(a)) by 12 percent. BIOREFINERY ASSISTANCE Act, to support participation should cost or (3) SUBSEQUENT INCREASE FOR FISCAL YEAR For the cost of loan guarantees and grants, participation exceed budget estimates, and 2010.—Beginning on October 1, 2009, and for as authorized by section 9003 of the Farm Se- of which $120,000,000 shall be for the purposes each subsequent month through the month curity and Rural Investment Act of 2002 (7 specified in section 17(h)(10)(B)(ii): Provided, ending September 30, 2010, the Secretary U.S.C. 8103), $200,000,000, to remain available That up to one percent of the funding pro- shall increase the cost of the thrifty food until September 30, 2010. vided for the purposes specified in section plan for purposes of section 8(a) of the Food RURAL ENERGY FOR AMERICA PROGRAM 17(h)(10)(B)(ii) may be reserved by the Sec- and Nutrition Act of 2008 (7 U.S.C. 2017(a)) by For an additional amount for the cost of retary for Federal administrative activities an amount equal to 12 percent, less the per- loan guarantees and grants, as authorized by in support of those purposes. centage by which the Secretary determines the thrifty food plan would otherwise be ad- section 9007 of the Farm Security and Rural COMMODITY ASSISTANCE PROGRAM justed on October 1, 2009, as required under Investment Act of 2002 (7 U.S.C. 8107), For an additional amount for the ‘‘Com- $50,000,000, to remain available until Sep- section 3(u) of that Act (7 U.S.C. 2012(u)), if modity Assistance Program’’, to remain the percentage is less than 12 percent. tember 30, 2010: Provided, That these funds available until September 30, 2010, may be used by tribes, local units of govern- (4) SUBSEQUENT INCREASE FOR FISCAL YEAR $150,000,000, which the Secretary shall use to 2011.—Beginning on October 1, 2010, and for ment, and schools in rural areas, as defined purchase a variety of commodities as author- in section 343(a) of the Consolidated Farm each subsequent month through the month ized by the Commodity Credit Corporation or ending September 30, 2011, the Secretary and Rural Development Act (7 U.S.C. under section 32 of the Act entitled ‘‘An Act 1991(a)). shall increase the cost of the thrifty food to amend the Agricultural Adjustment Act, plan for purposes of section 8(a) of the Food RURAL UTILITIES SERVICE and for other purposes’’, approved August 24, and Nutrition Act of 2008 (7 U.S.C. 2017(a)) by RURAL WATER AND WASTE DISPOSAL PROGRAM 1935 (7 U.S.C. 612c): Provided, That the Sec- an amount equal to 12 percent, less the sum ACCOUNT retary shall distribute the commodities to of the percentages by which the Secretary For an additional amount for the cost of States for distribution in accordance with determines the thrifty food plan would oth- direct loans, loan guarantees, and grants for section 214 of the Emergency Food Assist- erwise be adjusted on October 1, 2009 and Oc- the rural water, waste water, waste disposal, ance Act of 1983 (Public Law 98–8; 7 U.S.C. tober 1, 2010, as required under section 3(u) of and solid waste management programs au- 612c note): Provided further, That of the funds that Act (7 U.S.C. 2012(u)), if the sum of such thorized by sections 306, 306A, 306C, 306D, and made available, the Secretary may use up to percentages is less than 12 percent. 310B and described in sections 306C(a)(2), $50,000,000 for costs associated with the dis- (5) TERMINATION OF EFFECTIVENESS.—Effec- 306D, and 381E(d)(2) of the Consolidated Farm tribution of commodities. tive beginning October 1, 2011, the authority and Rural Development Act, $1,375,000,000, to GENERAL PROVISIONS—THIS TITLE provided by this subsection terminates and remain available until September 30, 2010. SEC. 101. Funds appropriated by this Act has no effect. DISTANCE LEARNING, TELEMEDICINE, AND and made available to the United States De- (b) ADMINISTRATION.—In carrying out this BROADBAND PROGRAM ACCOUNT partment of Agriculture for broadband direct section, the Secretary shall— For an additional amount for direct loans loans and loan guarantees, as authorized (1) consider the benefit increases described and grants for distance learning and tele- under title VI of the Rural Electrification in subsection (a) to be a mass change; medicine services in rural areas, as author- Act of 1936 (7 U.S.C. 950bb) and for grants, (2) require a simple process for States to ized by 7 U.S.C. 950aaa, et seq., $200,000,000, to shall be available for broadband infrastruc- notify households of the changes in benefits; remain available until September 30, 2010. ture in any area of the United States not- (3) consider section 16(c)(3)(A) of the Food withstanding title VI of the Rural Elec- and Nutrition Act of 2008 (7 U.S.C. FOOD AND NUTRITION SERVICE trification Act of 1936: Provided, That at 2025(c)(3)(A)) to apply to any errors in the CHILD NUTRITION PROGRAMS least 75 percent of the area served by the implementation of this section, without re- For additional amount for the Richard B. projects receiving funds from such grants, gard to the 120-day limit described in section Russell National School Lunch Act (42 U.S.C. loans, or loan guarantees is in a rural area 16(c)(3)(A) of that Act; 1751 et. seq.), except section 21, and the Child without sufficient access to high speed (4) disregard the additional amount of ben- Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), broadband service to facilitate rural eco- efits that a household receives as a result of except sections 17 and 21, $198,000,000, to re- nomic development, as determined by the this section in determining the amount of main available until September 30, 2010, to Secretary: Provided further, That priority for overissuances under section 13 of the Food carry out a grant program for National awarding funds made available under this and Nutrition Act of 2008 (7 U.S.C. 2022) and School Lunch Program equipment assist- paragraph shall be given to projects that the hours of participation in a program

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under section 6(d), 20, or 26 of that Act (7 (6) MONITORING AND EVALUATION.—Of the ‘‘(7) 2008 TRANSITION ASSISTANCE.— U.S.C. 2015(d), 2029, 2035); and amounts made available under paragraph (1), ‘‘(A) IN GENERAL.—Eligible producers on a (5) set the tolerance level for excluding the Secretary may retain up to $5,000,000 for farm described in subparagraph (A) of para- small errors for the purposes of section 16(c) the costs incurred by the Secretary in moni- graph (4) that failed to timely pay the appro- of the Food and Nutrition Act of 2008 (7 toring the integrity and evaluating the ef- priate fee described in that subparagraph U.S.C. 2025(c)) at $50 for the period that the fects of the payments made under this sec- shall be eligible for assistance under this benefit increase under subsection (a) is in ef- tion. section in accordance with subparagraph (B) (d) FOOD DISTRIBUTION PROGRAM ON INDIAN fect. if the eligible producers on the farm— (c) ADMINISTRATIVE EXPENSES.— RESERVATIONS.—For the costs of administra- ‘‘(i) pay the appropriate fee described in (1) IN GENERAL.—For the costs of State ad- tive expenses associated with the food dis- ministrative expenses associated with car- tribution program on Indian reservations es- paragraph (4)(A) not later than 90 days after rying out this section and administering the tablished under section 4(b) of the Food and the date of enactment of this paragraph; and supplemental nutrition assistance program Nutrition Act of 2008 (7 U.S.C. 2013(b)), the ‘‘(ii)(I) in the case of each insurable com- established under the Food and Nutrition Secretary shall make available $5,000,000, to modity of the eligible producers on the farm, Act of 2008 (7 U.S.C. 2011 et seq.) (referred to remain available until September 30, 2010. excluding grazing land, agree to obtain a pol- in this section as the ‘‘supplemental nutri- (e) CONSOLIDATED BLOCK GRANTS FOR PUER- icy or plan of insurance under subtitle A (ex- tion assistance program’’) during a period of TO RICO AND AMERICAN SAMOA.— cluding a crop insurance pilot program under rising program caseloads, and for the ex- (1) FISCAL YEAR 2009.— that subtitle) for the next insurance year for penses of the Secretary under paragraph (6), (A) IN GENERAL.—For fiscal year 2009, the which crop insurance is available to the eli- the Secretary shall make available Secretary shall increase by 12 percent the gible producers on the farm at a level of cov- $150,000,000 for each of fiscal years 2009 and amount available for nutrition assistance for erage equal to 70 percent or more of the re- 2010, to remain available through September eligible households under the consolidated corded or appraised average yield indem- 30, 2010. block grants for the Commonwealth of Puer- nified at 100 percent of the expected market (2) TIMING FOR FISCAL YEAR 2009.—Not later to Rico and American Samoa under section price, or an equivalent coverage; and than 60 days after the date of enactment of 19 of the Food and Nutrition Act of 2008 (7 ‘‘(II) in the case of each noninsurable com- this Act, the Secretary shall make available U.S.C. 2028). modity of the eligible producers on the farm, to States amounts for fiscal year 2009 under (B) AVAILABILITY OF FUNDS.—Funds made paragraph (1). available under subparagraph (A) shall re- agree to file the required paperwork, and pay (3) ALLOCATION OF FUNDS.—Except as pro- main available through September 30, 2010. the administrative fee by the applicable vided in paragraph (6), funds described in (2) FISCAL YEAR 2010.—For fiscal year 2010, State filing deadline, for the noninsured crop paragraph (1) shall be made available to the Secretary shall increase the amount assistance program for the 2009 crop year. States that meet the requirements of para- available for nutrition assistance for eligible ‘‘(B) AMOUNT OF ASSISTANCE.—Eligible pro- graph (5) as grants to State agencies for each households under the consolidated block ducers on a farm that meet the requirements fiscal year as follows: grants for the Commonwealth of Puerto Rico of subparagraph (A) shall be eligible to re- (A) 75 percent of the amounts available for and American Samoa under section 19 of the ceive assistance under this section as if the each fiscal year shall be allocated to States Food and Nutrition Act of 2008 (7 U.S.C. 2028) eligible producers on the farm— based on the share of each State of house- by 12 percent, less the percentage by which ‘‘(i) in the case of each insurable com- holds that participate in the supplemental the Secretary determines the consolidated modity of the eligible producers on the farm, nutrition assistance program as reported to block grants would otherwise be adjusted on had obtained a policy or plan of insurance the Department of Agriculture for the most October 1, 2009, as required by section for the 2008 crop year at a level of coverage recent 12-month period for which data are 19(a)(2)(A)(ii) of that Act (7 U.S.C. not to exceed 70 percent or more of the re- available, adjusted by the Secretary (in the 2028(a)(2)(A)(ii)), if the percentage is less corded or appraised average yield indem- discretion of the Secretary) for participation than 12 percent. in disaster programs under section 5(h) of nified at 100 percent of the expected market (3) FISCAL YEAR 2011.—For fiscal year 2011, price, or an equivalent coverage; and the Food and Nutrition Act of 2008 (7 U.S.C. the Secretary shall increase the amount ‘‘(ii) in the case of each noninsurable com- 2014(h)); and available for nutrition assistance for eligible modity of the eligible producers on the farm, (B) 25 percent of the amounts available for households under the consolidated block had filed the required paperwork, and paid each fiscal year shall be allocated to States grants for the Commonwealth of Puerto Rico based on the increase in the number of and American Samoa under section 19 of the the administrative fee by the applicable households that participate in the supple- Food and Nutrition Act of 2008 (7 U.S.C. 2028) State filing deadline, for the noninsured crop mental nutrition assistance program as re- by 12 percent, less the sum of the percent- assistance program for the 2008 crop year, ex- ported to the Department of Agriculture ages by which the Secretary determines the cept that in determining yield under that over the most recent 12-month period for consolidated block grants would otherwise program, the Secretary shall use a percent- which data are available, adjusted by the be adjusted on October 1, 2009, and October 1, age that is 70 percent. Secretary (in the discretion of the Sec- 2010, as required by section 19(a)(2)(A)(ii) of ‘‘(C) EQUITABLE RELIEF.—Except as pro- retary) for participation in disaster pro- that Act (7 U.S.C. 2028(a)(2)(A)(ii)), if the sum vided in subparagraph (D), eligible producers grams under section 5(h) of the Food and Nu- of the percentages is less than 12 percent. on a farm that met the requirements of para- trition Act of 2008 (7 U.S.C. 2014(h)). (f) TREATMENT OF JOBLESS WORKERS.— graph (1) before the deadline described in (4) REDISTRIBUTION.—The Secretary shall (1) REMAINDER OF FISCAL YEAR 2009 THROUGH paragraph (4)(A) and received, or are eligible determine an appropriate procedure for re- FISCAL YEAR 2011.—Beginning with the first to receive, a disaster assistance payment distribution of amounts allocated to States month that begins not less than 25 days after under this section for a production loss dur- that would otherwise be provided allocations the date of enactment of this Act and for under paragraph (3) for a fiscal year but that ing the 2008 crop year shall be eligible to re- each subsequent month through September ceive an additional amount equal to the do not meet the requirements of paragraph 30, 2011, eligibility for supplemental nutri- greater of— (5). tion assistance program benefits shall not be ‘‘(i) the amount that would have been cal- (5) MAINTENANCE OF EFFORT.— limited under section 6(o)(2) of the Food and culated under subparagraph (B) if the eligi- (A) DEFINITION OF SPECIFIED STATE ADMINIS- Nutrition Act of 2008 unless an individual TRATIVE COSTS.—In this paragraph: does not comply with the requirements of a ble producers on the farm had paid the ap- (i) IN GENERAL.—The term ‘‘specified State program offered by the State agency that propriate fee under that subparagraph; or administrative costs’’ includes all State ad- meets the standards of subparagraphs (B) or ‘‘(ii) the amount that would have been cal- ministrative costs under the supplemental (C) of that paragraph. culated under subparagraph (A) of subsection nutrition assistance program. (2) FISCAL YEAR 2012 AND THEREAFTER.—Be- (b)(3) if— (ii) EXCLUSIONS.—The term ‘‘specified ginning on October 1, 2011, for the purposes ‘‘(I) in clause (i) of that subparagraph, ‘120 State administrative costs’’ does not in- of section 6(o) of the Food and Nutrition Act percent’ is substituted for ‘115 percent’; and clude— of 2008 (7 U.S.C. 2015(o)), a State agency shall ‘‘(II) in clause (ii) of that subparagraph, (I) the costs of employment and training disregard any period during which an indi- ‘125’ is substituted for ‘120 percent’. programs under section 6(d), 20, or 26 of the vidual received benefits under the supple- ‘‘(D) LIMITATION.—For amounts made Food and Nutrition Act of 2008 (7 U.S.C. mental nutrition assistance program prior to available under this paragraph, the Sec- 2015(d), 2029, 2035); October 1, 2011. retary may make such adjustments as are (II) the costs of nutrition education under (g) FUNDING.—There are appropriated to necessary to ensure that no producer re- section 11(f) of that Act (7 U.S.C. 2020(f)); and the Secretary out of funds of the Treasury ceives a payment under this paragraph for an (III) any other costs the Secretary deter- not otherwise appropriated such sums as are amount in excess of the assistance received mines should be excluded. necessary to carry out this section. by a similarly situated producer that had (B) REQUIREMENT.—The Secretary shall SEC. 103. AGRICULTURAL DISASTER ASSIST- make funds under this subsection available ANCE TRANSITION. (a) FEDERAL CROP INSUR- purchased the same or higher level of crop only to States that, as determined by the ANCE ACT.—Section 531(g) of the Federal insurance prior to the date of enactment of Secretary, maintain State expenditures on Crop Insurance Act (7 U.S.C. 1531(g)) is this paragraph. specified State administrative costs. amended by adding at the end the following:

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‘‘(E) AUTHORITY OF THE SECRETARY.—The on a farm that met the requirements of para- (A) IN GENERAL.—Of the funds of the Com- Secretary may provide such additional as- graph (1) before the deadline described in modity Credit Corporation, the Secretary sistance as the Secretary considers appro- paragraph (4)(A) and received, or are eligible shall use not more than $100,000,000, to re- priate to provide equitable treatment for eli- to receive, a disaster assistance payment main available until September 30, 2010, to gible producers on a farm that suffered pro- under this section for a production loss dur- carry out a program of grants to States to duction losses in the 2008 crop year that re- ing the 2008 crop year shall be eligible to re- assist eligible aquaculture producers for sult in multiyear production losses, as deter- ceive an additional amount equal to the losses associated with high feed input costs mined by the Secretary. greater of— during the 2008 calendar year. ‘‘(F) LACK OF ACCESS.—Notwithstanding ‘‘(i) the amount that would have been cal- (B) NOTIFICATION.—Not later than 60 days any other provision of this section, the Sec- culated under subparagraph (B) if the eligi- after the date of enactment of this Act, the retary may provide assistance under this ble producers on the farm had paid the ap- Secretary shall notify the State department section to eligible producers on a farm that— propriate fee under that subparagraph; or of agriculture (or similar entity) in each ‘‘(i) suffered a production loss due to a nat- ‘‘(ii) the amount that would have been cal- State of the availability of funds to assist el- ural cause during the 2008 crop year; and culated under subparagraph (A) of subsection igible aquaculture producers, including such ‘‘(ii) as determined by the Secretary— (b)(3) if— terms as determined by the Secretary to be ‘‘(I)(aa) except as provided in item (bb), ‘‘(I) in clause (i) of that subparagraph, ‘120 necessary for the equitable treatment of eli- lack access to a policy or plan of insurance percent’ is substituted for ‘115 percent’; and gible aquaculture producers. under subtitle A; or ‘‘(II) in clause (ii) of that subparagraph, (C) PROVISION OF GRANTS.— ‘‘(bb) do not qualify for a written agree- ‘125’ is substituted for ‘120 percent’. (i) IN GENERAL.—The Secretary shall make ment because 1 or more farming practices, ‘‘(D) LIMITATION.—For amounts made grants to States under this subsection on a which the Secretary has determined are good available under this paragraph, the Sec- pro rata basis based on the amount of aqua- farming practices, of the eligible producers retary may make such adjustments as are culture feed used in each State during the on the farm differ significantly from the necessary to ensure that no producer re- 2007 calendar year, as determined by the Sec- farming practices used by producers of the ceives a payment under this paragraph for an retary. same crop in other regions of the United amount in excess of the assistance received (ii) TIMING.—Not later than 120 days after States; and by a similarly situated producer that had the date of enactment of this Act, the Sec- ‘‘(II) are not eligible for the noninsured purchased the same or higher level of crop retary shall make grants to States to pro- crop disaster assistance program established insurance prior to the date of enactment of vide assistance under this subsection. by section 196 of the Federal Agriculture Im- this paragraph. (D) REQUIREMENTS.—The Secretary shall provement and Reform Act of 1996 (7 U.S.C. ‘‘(E) AUTHORITY OF THE SECRETARY.—The make grants under this subsection only to 7333).’’. Secretary may provide such additional as- States that demonstrate to the satisfaction (b) TRADE ACT OF 1974.—Section 901(g) of sistance as the Secretary considers appro- of the Secretary that the State will— the Trade Act of 1974 (19 U.S.C. 2497(g)) is priate to provide equitable treatment for eli- (i) use grant funds to assist eligible aqua- amended by adding at the end the following: gible producers on a farm that suffered pro- culture producers; ‘‘(7) 2008 TRANSITION ASSISTANCE.— duction losses in the 2008 crop year that re- (ii) provide assistance to eligible aqua- ‘‘(A) IN GENERAL.—Eligible producers on a sult in multiyear production losses, as deter- culture producers not later than 60 days farm described in subparagraph (A) of para- mined by the Secretary. after the date on which the State receives graph (4) that failed to timely pay the appro- ‘‘(F) LACK OF ACCESS.—Notwithstanding grant funds; and priate fee described in that subparagraph any other provision of this section, the Sec- (iii) not later than 30 days after the date shall be eligible for assistance under this retary may provide assistance under this on which the State provides assistance to el- section in accordance with subparagraph (B) section to eligible producers on a farm that— igible aquaculture producers, submit to the if the eligible producers on the farm— ‘‘(i) suffered a production loss due to a nat- Secretary a report that describes— ‘‘(i) pay the appropriate fee described in ural cause during the 2008 crop year; and (I) the manner in which the State provided paragraph (4)(A) not later than 90 days after ‘‘(ii) as determined by the Secretary— assistance; the date of enactment of this paragraph; and ‘‘(I)(aa) except as provided in item (bb), (II) the amounts of assistance provided per ‘‘(ii)(I) in the case of each insurable com- lack access to a policy or plan of insurance species of aquaculture; and modity of the eligible producers on the farm, under subtitle A; or (III) the process by which the State deter- excluding grazing land, agree to obtain a pol- ‘‘(bb) do not qualify for a written agree- mined the levels of assistance to eligible icy or plan of insurance under the Federal ment because 1 or more farming practices, aquaculture producers. Crop Insurance Act (7 U.S.C. 1501 et seq.) (ex- which the Secretary has determined are good (3) REDUCTION IN PAYMENTS.—An eligible cluding a crop insurance pilot program under farming practices, of the eligible producers aquaculture producer that receives assist- that Act) for the next insurance year for on the farm differ significantly from the ance under this subsection shall not be eligi- which crop insurance is available to the eli- farming practices used by producers of the ble to receive any other assistance under the gible producers on the farm at a level of cov- same crop in other regions of the United supplemental agricultural disaster assist- erage equal to 70 percent or more of the re- States; and ance program established under section 531 corded or appraised average yield indem- ‘‘(II) are not eligible for the noninsured of the Federal Crop Insurance Act (7 U.S.C. nified at 100 percent of the expected market crop disaster assistance program established 1531) and section 901 of the Trade Act of 1974 price, or an equivalent coverage; and by section 196 of the Federal Agriculture Im- (19 U.S.C. 2497) for any losses in 2008 relating ‘‘(II) in the case of each noninsurable com- provement and Reform Act of 1996 (7 U.S.C. to the same species of aquaculture. modity of the eligible producers on the farm, 7333).’’. (4) REPORT TO CONGRESS.—Not later than agree to file the required paperwork, and pay (c) EMERGENCY LOANS.— 180 days after the date of enactment of this the administrative fee by the applicable (1) IN GENERAL.—For the principal amount Act, the Secretary shall submit to the appro- State filing deadline, for the noninsured crop of direct emergency loans under section 321 priate committees of Congress a report assistance program for the 2009 crop year. of the Consolidated Farm and Rural Develop- that— ‘‘(B) AMOUNT OF ASSISTANCE.—Eligible pro- ment Act (7 U.S.C. 1961), $200,000,000. (A) describes in detail the manner in which ducers on a farm that meet the requirements (2) DIRECT EMERGENCY LOANS.—For the cost this subsection has been carried out; and of subparagraph (A) shall be eligible to re- of direct emergency loans, including the cost (B) includes the information reported to ceive assistance under this section as if the of modifying loans, as defined in section 502 the Secretary under paragraph (2)(D)(iii). eligible producers on the farm— of the Congressional Budget Act of 1974 (2 SEC. 104. (a) Hereafter, in this section, the ‘‘(i) in the case of each insurable com- U.S.C. 661a), $28,440,000, to remain available term ‘‘nonambulatory disabled cattle’’ modity of the eligible producers on the farm, until September 30, 2010. means cattle, other than cattle that are less had obtained a policy or plan of insurance (d) 2008 AQUACULTURE ASSISTANCE.— than 5 months old or weigh less than 500 for the 2008 crop year at a level of coverage (1) DEFINITIONS.—In this subsection: pounds, subject to inspection under section not to exceed 70 percent or more of the re- (A) ELIGIBLE AQUACULTURE PRODUCER.—The 3(b) of the Federal Meat Inspection Act (21 corded or appraised average yield indem- term ‘‘eligible aquaculture producer’’ means U.S.C. 603(b)) that cannot rise from a recum- nified at 100 percent of the expected market an aquaculture producer that during the 2008 bent position or walk, including cattle with price, or an equivalent coverage; and calendar year, as determined by the Sec- a broken appendage, severed tendon or liga- ‘‘(ii) in the case of each noninsurable com- retary— ment, nerve paralysis, fractured vertebral modity of the eligible producers on the farm, (i) produced an aquaculture species for column, or a metabolic condition. had filed the required paperwork, and paid which feed costs represented a substantial (b) Hereafter, none of the funds made avail- the administrative fee by the applicable percentage of the input costs of the aqua- able under this or any other Act may be used State filing deadline, for the noninsured crop culture operation; and to pay the salaries or expenses of any per- assistance program for the 2008 crop year, ex- (ii) experienced a substantial price in- sonnel of the Food Safety and Inspection cept that in determining yield under that crease of feed costs above the previous 5-year Service to pass through inspection any non- program, the Secretary shall use a percent- average. ambulatory disabled cattle for use as human age that is 70 percent. (B) SECRETARY.—The term ‘‘Secretary’’ food, regardless of the reason for the non- ‘‘(C) EQUITABLE RELIEF.—Except as pro- means the Secretary of Agriculture. ambulatory status of the cattle or the time vided in subparagraph (D), eligible producers (2) GRANT PROGRAM.— at which the cattle became nonambulatory.

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SEC. 105. STATE AND LOCAL GOVERNMENTS. section 201 of this Act: Provided further, That DEPARTMENT OF JUSTICE Section 1001(f)(6)(A) of the Food Security Act of the funds provided under this heading, GENERAL ADMINISTRATION of 1985 (7 U.S.C. 1308(f)(6)(A)) is amended by amounts deemed necessary and appropriate TACTICAL LAW ENFORCEMENT WIRELESS inserting ‘‘(other than the conservation re- by the Secretary of Commerce, in consulta- COMMUNICATIONS serve program established under subchapter tion with the Federal Communications Com- B of chapter 1 of subtitle D of title XII of mission (FCC), may be transferred to the For an additional amount for ‘‘Tactical this Act)’’ before the period at the end. FCC for the purposes of developing a na- Law Enforcement Wireless Communica- SEC. 106. Except for title I of the Food, tional broadband plan or for carrying out tions’’, $200,000,000 for the costs of developing Conservation, and Energy Act of 2008 (Public any other FCC responsibilities pursuant to and implementing a nationwide Integrated Law 110–246), Commodity Credit Corporation section 201 of this Act, and only if the Com- Wireless network supporting Federal law en- funds provided in that Act shall be available mittees on Appropriations of the House and forcement, to remain available until Sep- for administrative expenses, including tech- the Senate are notified not less than 15 days tember 30, 2010. nical assistance, without regard to the limi- in advance of the transfer of such funds: Pro- DETENTION TRUSTEE tation in 15 U.S.C. 714i. vided further, That not more than 3 percent For an additional amount for ‘‘Detention TITLE II—COMMERCE, JUSTICE, of funds provided under this heading may be Trustee’’, $150,000,000, to remain available SCIENCE, AND RELATED AGENCIES used for administrative costs, and this limi- until September 30, 2010. tation shall apply to funds which may be DEPARTMENT OF COMMERCE OFFICE OF INSPECTOR GENERAL transferred to the Department of Agriculture BUREAU OF INDUSTRY AND SECURITY and the FCC. For an additional amount for ‘‘Office of In- OPERATIONS AND ADMINISTRATION spector General’’, $2,000,000, to remain avail- DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM able until September 30, 2010. For an additional amount for ‘‘Operations For an amount for ‘‘Digital-to-Analog Con- UNITED STATES MARSHALS SERVICE and Administration’’, $20,000,000, to remain verter Box Program’’, $650,000,000, for addi- SALARIES AND EXPENSES available until September 30, 2010. tional coupons and related activities under ECONOMIC DEVELOPMENT ADMINISTRATION the program implemented under section 3005 For an additional amount for ‘‘Salaries ECONOMIC DEVELOPMENT ASSISTANCE of the Digital Television Transition and Pub- and Expenses’’, $50,000,000, to remain avail- PROGRAMS lic Safety Act of 2005, to remain available able until September 30, 2010. For an additional amount for ‘‘Economic until September 30, 2010: Provided, That of CONSTRUCTION Development Assistance Programs’’, the amounts provided under this heading, For an additional amount for ‘‘Construc- $150,000,000, to remain available until Sep- $90,000,000 may be for education and out- tion’’, $125,000,000, to remain available until tember 30, 2010: Provided, That $50,000,000 reach, including grants to organizations for September 30, 2010. programs to educate vulnerable populations, shall be for economic adjustment assistance FEDERAL BUREAU OF INVESTIGATION including senior citizens, minority commu- as authorized by section 209 of the Public SALARIES AND EXPENSES Works and Economic Development Act of nities, people with disabilities, low-income 1965, as amended (42 U.S.C. 3149): Provided individuals, and people living in rural areas, For an additional amount for ‘‘Salaries further, That in allocating the funds provided about the transition and to provide one-on- and Expenses’’, $75,000,000, to remain avail- in the previous proviso, the Secretary of one assistance to vulnerable populations, in- able until September 30, 2010. Commerce shall give priority consideration cluding help with converter box installation: CONSTRUCTION to areas of the Nation that have experienced Provided further, That the amounts provided For an additional amount for ‘‘Construc- sudden and severe economic dislocation and in the previous proviso may be transferred to tion’’, $400,000,000, to remain available until job loss due to corporate restructuring. the Federal Communications Commission September 30, 2010. (Commission) if deemed necessary and appro- BUREAU OF THE CENSUS priate by the Secretary of Commerce in con- FEDERAL PRISON SYSTEM PERIODIC CENSUSES AND PROGRAMS sultation with the Commission, and only if BUILDINGS AND FACILITIES For an additional amount for ‘‘Periodic the Committees on Appropriations of the For an additional amount for ‘‘Federal Censuses and Programs’’, $1,000,000,000, to re- House and the Senate are notified not less Prison System, Buildings and Facilities’’, main available until September 30, 2010. than 5 days in advance of transfer of such $1,000,000,000, to remain available until Sep- NATIONAL TELECOMMUNICATIONS AND funds: Provided further, That $2,000,000 of tember 30, 2010. INFORMATION ADMINISTRATION funds provided under this heading shall be STATE AND LOCAL LAW ENFORCEMENT transferred to ‘‘Department of Commerce, BROADBAND TECHNOLOGY OPPORTUNITIES ACTIVITIES Office of Inspector General’’ for audits and PROGRAM OFFICE ON VIOLENCE AGAINST WOMEN oversight of funds provided under this head- For an amount for ‘‘Broadband Technology ing. VIOLENCE AGAINST WOMEN PREVENTION AND Opportunities Program’’, $9,000,000,000, to re- PROSECUTION PROGRAMS main available until September 30, 2010: Pro- NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY For an additional amount for ‘‘Violence vided, That of the funds provided under this Against Women Prevention and Prosecution SCIENTIFIC AND TECHNICAL RESEARCH AND heading, $8,650,000,000 shall be expended pur- Programs’’, $300,000,000 for grants to combat SERVICES suant to section 201 of this Act, of which: not violence against women, as authorized by less than $200,000,000 shall be available for For an additional amount for ‘‘Scientific part T of the Omnibus Crime Control and competitive grants for expanding public and Technical Research and Services’’, Safe Streets Act of 1968 (42 U.S.C. 3711 et computer center capacity, including at com- $218,000,000, to remain available until Sep- seq.): Provided, That, $50,000,000 shall be tran- munity colleges and public libraries; not less tember 30, 2010. sitional housing assistance grants for vic- than $250,000,000 shall be available for com- CONSTRUCTION OF RESEARCH FACILITIES tims of domestic violence, stalking or sexual petitive grants for innovative programs to assault as authorized by section 40299 of the encourage sustainable adoption of broadband For an additional amount for ‘‘Construc- tion of Research Facilities’’, $357,000,000, to Violent Crime Control and Law Enforcement service; and $10,000,000 shall be transferred to Act of 1994 (Public Law 103–322). ‘‘Department of Commerce, Office of Inspec- remain available until September 30, 2010. OFFICE OF JUSTICE PROGRAMS tor General’’ for the purposes of audits and NATIONAL OCEANIC AND ATMOSPHERIC oversight of funds provided under this head- ADMINISTRATION STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE ing and such funds shall remain available OPERATIONS, RESEARCH, AND FACILITIES until expended: Provided further, That 50 per- For an additional amount for ‘‘Operations, For an additional amount for ‘‘State and cent of the funds provided in the previous Research, and Facilities’’, $427,000,000, to re- Local Law Enforcement Assistance’’, proviso shall be used to support projects in main available until September 30, 2010. $1,500,000,000 for the Edward Byrne Memorial rural communities, which in part may be Justice Assistance Grant program as author- transferred to the Department of Agriculture PROCUREMENT, ACQUISITION AND CONSTRUCTION ized by subpart 1 of part E of title I of the for administration through the Rural Utili- For an additional amount for ‘‘Procure- Omnibus Crime Control and Safe Street Act ties Service if deemed necessary and appro- ment, Acquisition and Construction’’, of 1968 (‘‘1968 Act’’), (except that section priate by the Secretary of Commerce, in con- $795,000,000, to remain available until Sep- 1001(c), and the special rules for Puerto Rico sultation with the Secretary of Agriculture, tember 30, 2010. under section 505(g), of the 1968 Act, shall not and only if the Committees on Appropria- DEPARTMENTAL MANAGEMENT apply for purposes of this Act), to remain tions of the House and the Senate are noti- available until September 30, 2010. For an additional amount for ‘‘Depart- fied not less than 15 days in advance of the For an additional amount for ‘‘State and mental Management’’, $34,000,000, to remain transfer of such funds: Provided further, That Local Law Enforcement Assistance’’, available until September 30, 2010. of the funds provided under this heading, up $440,000,000 for competitive grants to improve to $350,000,000 may be expended pursuant to OFFICE OF INSPECTOR GENERAL the functioning of the criminal justice sys- Public Law 110–385 (47 U.S.C. 1301 note) and For an additional amount for ‘‘Office of In- tem, to assist victims of crime (other than for the purposes of developing and maintain- spector General’’, $6,000,000, to remain avail- compensation), and youth mentoring grants, ing a broadband inventory map pursuant to able until September 30, 2010. to remain available until September 30, 2010.

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For an additional amount for ‘‘State and OFFICE OF INSPECTOR GENERAL (3) The Assistant Secretary shall— Local Law Enforcement Assistance’’, For an additional amount for ‘‘Office of In- (A) establish and implement the grant pro- $100,000,000, to remain available until Sep- spector General’’, $2,000,000, to remain avail- gram as expeditiously as practicable; tember 30, 2010, for competitive grants to able until September 30, 2010. (B) ensure that all awards are made before provide assistance and equipment to local NATIONAL SCIENCE FOUNDATION the end of fiscal year 2010; law enforcement along the Southern border (C) seek such assurances as may be nec- RESEARCH AND RELATED ACTIVITIES and in High-Intensity Drug Trafficking essary or appropriate from grantees under Areas to combat criminal narcotics activity For an additional amount for ‘‘Research the program that they will substantially stemming from the Southern border, of and Related Activities’’, $1,200,000,000, to re- complete projects supported by the program which $10,000,000 shall be transferred to ‘‘Bu- main available until September 30, 2010. in accordance with project timelines, not to reau of Alcohol, Tobacco, Firearms and Ex- MAJOR RESEARCH EQUIPMENT AND FACILITIES exceed 2 years following an award; and plosives, Salaries and Expenses’’ for the ATF CONSTRUCTION (D) report on the status of the program to Project Gunrunner. For an additional amount for ‘‘Major Re- the Committees on Appropriations of the For an additional amount for ‘‘State and search Equipment and Facilities Construc- Local Law Enforcement Assistance’’, House and the Senate, the Committee on En- $300,000,000, to remain available until Sep- tion’’, $150,000,000, to remain available until ergy and Commerce of the House, and the tember 30, 2010, for assistance to Indian September 30, 2010. Committee on Commerce, Science, and tribes, notwithstanding Public Law 108–199, EDUCATION AND HUMAN RESOURCES Transportation of the Senate, every 90 days. division B, title I, section 112(a)(1) (118 Stat. For an additional amount for ‘‘Education (4) To be eligible for a grant under the pro- 62), of which— and Human Resources’’, $50,000,000, to remain gram an applicant shall— (1) $250,000,000 shall be available for grants available until September 30, 2010. (A) be a State or political subdivision thereof, a nonprofit foundation, corporation, under section 20109 of subtitle A of title II of OFFICE OF INSPECTOR GENERAL institution or association, Indian tribe, Na- the Violent Crime Control and Law Enforce- For an additional amount for ‘‘Office of In- ment Act of 1994 (Public Law 103–322); tive Hawaiian organization, or other non- spector General’’, $2,000,000, to remain avail- governmental entity in partnership with a (2) $25,000,000 shall be available for the able until September 30, 2010. Tribal Courts Initiative; and State or political subdivision thereof, Indian (3) $25,000,000 shall be available for tribal GENERAL PROVISIONS—THIS TITLE tribe, or Native Hawaiian organization if the alcohol and substance abuse drug reduction SEC. 201. The Assistant Secretary of Com- Assistant Secretary determines the partner- assistance grants. merce for Communications and Information ship consistent with the purposes this sec- For an additional amount for ‘‘State and (Assistant Secretary), in consultation with tion; Local Law Enforcement Assistance’’, the Federal Communications Commission (B) submit an application, at such time, in $100,000,000, to remain available until Sep- (Commission) (and, with respect to rural such form, and containing such information tember 30, 2010, to be distributed by the Of- areas, the Secretary of Agriculture), shall es- as the Assistant Secretary may require; fice for Victims of Crime in accordance with tablish a national broadband service develop- (C) provide a detailed explanation of how section 1402(d)(4) of the Victims of Crime Act ment and expansion program in conjunction any amount received under the program will of 1984 (Public Law 98–473). with the technology opportunities program, be used to carry out the purposes of this sec- For an additional amount for ‘‘State and which shall be referred to the Broadband tion in an efficient and expeditious manner, Local Law Enforcement Assistance’’, Technology Opportunities Program. The As- including a demonstration that the project $150,000,000, to remain available until Sep- sistant Secretary shall ensure that the pro- would not have been implemented during the tember 30, 2010, for assistance to law enforce- gram complements and enhances and does grant period without Federal grant assist- ment in rural areas, to prevent and combat not conflict with other Federal broadband ance; crime, especially drug-related crime. initiatives and programs. (D) demonstrate, to the satisfaction of the For an additional amount for ‘‘State and (1) The purposes of the program are to— Assistant Secretary, that it is capable of car- Local Law Enforcement Assistance’’, (A) provide access to broadband service to rying out the project or function to which $50,000,000, to remain available until Sep- citizens residing in unserved areas of the the application relates in a competent man- tember 30, 2010, for Internet Crimes Against United States; ner in compliance with all applicable Fed- Children (ICAC) initiatives. (B) provide improved access to broadband eral, State, and local laws; COMMUNITY ORIENTED POLICING SERVICES service to citizens residing in underserved (E) demonstrate, to the satisfaction of the For an additional amount for ‘‘Community areas of the United States; Assistant Secretary, that it will appropriate Oriented Policing Services’’, for grants under (C) provide broadband education, aware- (if the applicant is a State or local govern- section 1701 of title I of the 1968 Omnibus ness, training, access, equipment, and sup- ment agency) or otherwise unconditionally Crime Control and Safe Streets Act (42 port to— obligate, from non-Federal sources, funds re- U.S.C. 3796dd) for hiring and rehiring of addi- (i) schools, libraries, medical and quired to meet the requirements of para- tional career law enforcement officers under healthcare providers, community colleges graph (5); part Q of such title, and civilian public safe- and other institutions of higher education, (F) disclose to the Assistant Secretary the ty personnel, notwithstanding subsection (i) and other community support organizations source and amount of other Federal or State of such section and notwithstanding 42 and entities to facilitate greater use of funding sources from which the applicant re- U.S.C. 3796dd–3(c), $1,000,000,000, to remain broadband service by or through these orga- ceives, or has applied for, funding for activi- available until September 30, 2010. nizations; ties or projects to which the application re- SALARIES AND EXPENSES (ii) organizations and agencies that provide lates; and For an additional amount, not elsewhere outreach, access, equipment, and support (G) provide such assurances and procedures specified in this title, for management and services to facilitate greater use of as the Assistant Secretary may require to administration and oversight of programs broadband service by low-income, unem- ensure that grant funds are used and ac- within the Office on Violence Against ployed, aged, and otherwise vulnerable popu- counted for in an appropriate manner. Women, the Office of Justice Programs, and lations; and (5) The Federal share of any project may the Community Oriented Policing Services (iii) job-creating strategic facilities lo- not exceed 80 percent, except that the Assist- Office, $10,000,000, to remain available until cated within a State-designated economic ant Secretary may increase the Federal September 30, 2010. zone, Economic Development District des- share of a project above 80 percent if— SCIENCE ignated by the Department of Commerce, Re- (A) the applicant petitions the Assistant NATIONAL AERONAUTICS AND SPACE newal Community or Empowerment Zone Secretary for a waiver; and ADMINISTRATION designated by the Department of Housing (B) the Assistant Secretary determines SCIENCE and Urban Development, or Enterprise Com- that the petition demonstrates financial For an additional amount for ‘‘Science’’, munity designated by the Department of Ag- need. $500,000,000, to remain available until Sep- riculture. (6) The Assistant Secretary may make tember 30, 2010. (D) improve access to, and use of, competitive grants under the program to— broadband service by public safety agencies; (A) acquire equipment, instrumentation, AERONAUTICS and networking capability, hardware and soft- For an additional amount for ‘‘Aero- (E) stimulate the demand for broadband, ware, digital network technology, and infra- nautics’’, $250,000,000, to remain available economic growth, and job creation. structure for broadband services; until September 30, 2010. (2) The Assistant Secretary may consult (B) construct and deploy broadband service EXPLORATION with the chief executive officer of any State related infrastructure; For an additional amount for ‘‘Explo- with respect to— (C) ensure access to broadband service by ration’’, $500,000,000, to remain available (A) the identification of areas described in community anchor institutions; until September 30, 2010. subsection (1)(A) or (B) located in that State; (D) facilitate access to broadband service CROSS AGENCY SUPPORT and by low-income, unemployed, aged, and other- For an additional amount for ‘‘Cross Agen- (B) the allocation of grant funds within wise vulnerable populations in order to pro- cy Support’’, $250,000,000, to remain available that State for projects in or affecting the vide educational and employment opportuni- until September 30, 2010. State. ties to members of such populations;

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(7) The Assistant Secretary— TITLE III—DEPARTMENT OF DEFENSE TITLE IV—ENERGY AND WATER (A) shall require any entity receiving a OPERATION AND MAINTENANCE grant pursuant to this section to report DEVELOPMENT OPERATION AND MAINTENANCE, ARMY quarterly, in a format specified by the As- DEPARTMENT OF DEFENSE—CIVIL For an additional amount for ‘‘Operation sistant Secretary, on such entity’s use of the DEPARTMENT OF THE ARMY assistance and progress fulfilling the objec- and Maintenance, Army’’, $1,169,291,000, to CORPS OF ENGINEERS—CIVIL tives for which such funds were granted, and remain available for obligation until Sep- the Assistant Secretary shall make these re- tember 30, 2010. INVESTIGATIONS ports available to the public; OPERATION AND MAINTENANCE, NAVY For an additional amount for ‘‘Investiga- (B) may establish additional reporting and For an additional amount for ‘‘Operation tions’’ for expenses necessary where author- information requirements for any recipient and Maintenance, Navy’’, $571,843,000, to re- ized by law for the collection and study of of any assistance made available pursuant to main available for obligation until Sep- basic information pertaining to river and this section; tember 30, 2010. harbor, flood and storm damage reduction, (C) shall establish appropriate mechanisms OPERATION AND MAINTENANCE, MARINE CORPS shore protection, aquatic ecosystem restora- to ensure appropriate use and compliance For an additional amount for ‘‘Operation tion, and related needs; for surveys and de- with all terms of any use of funds made and Maintenance, Marine Corps’’, tailed studies, and plans and specifications of available pursuant to this section; $112,167,000, to remain available for obliga- proposed river and harbor, flood and storm (D) may, in addition to other authority tion until September 30, 2010. damage reduction, shore protection, and under applicable law, deobligate awards to OPERATION AND MAINTENANCE, AIR FORCE aquatic ecosystem restoration projects and grantees that demonstrate an insufficient related efforts prior to construction; for re- For an additional amount for ‘‘Operation level of performance, or wasteful or fraudu- study of authorized projects; and for mis- and Maintenance, Air Force’’, $927,113,000, to lent spending, as defined in advance by the cellaneous investigations and, when author- remain available for obligation until Sep- Assistant Secretary, and award these funds ized by law, surveys and detailed studies, and tember 30, 2010. competitively to new or existing applicants plans and specifications of projects prior to consistent with this section; and OPERATION AND MAINTENANCE, ARMY construction, $25,000,000: Provided, That funds (E) shall create and maintain a fully RESERVE provided under this heading in this title searchable database, accessible on the Inter- For an additional amount for ‘‘Operation shall only be used for programs, projects or net at no cost to the public, that contains at and Maintenance, Army Reserve’’, activities that heretofore or hereafter re- least the name of each entity receiving funds $79,543,000, to remain available for obligation ceive funds provided in Acts making appro- made available pursuant to this section, the until September 30, 2010. priations available for Energy and Water De- purpose for which such entity is receiving OPERATION AND MAINTENANCE, NAVY RESERVE velopment: Provided further, That funds pro- such funds, each quarterly report submitted For an additional amount for ‘‘Operation vided under this heading in this title shall be by the entity pursuant to this section, and and Maintenance, Navy Reserve’’, $44,586,000, used for programs, projects or activities or such other information sufficient to allow to remain available for obligation until Sep- elements of programs, projects or activities the public to understand and monitor grants tember 30, 2010. that can be completed within the funds made awarded under the program. OPERATION AND MAINTENANCE, MARINE CORPS available in that account and that will not (8) Concurrent with the issuance of the Re- RESERVE require new budget authority to complete: quest for Proposal for grant applications Provided further, That for projects that are pursuant to this section, the Assistant Sec- For an additional amount for ‘‘Operation and Maintenance, Marine Corps Reserve’’, being completed with funds appropriated in retary shall, in coordination with the Fed- this Act that would otherwise be expired for eral Communications Commission, publish $32,304,000, to remain available for obligation until September 30, 2010. obligation, expired funds appropriated in the non-discrimination and network inter- this Act may be used to pay the cost of asso- OPERATION AND MAINTENANCE, AIR FORCE connection obligations that shall be contrac- ciated supervision, inspection, over engineer- RESERVE tual conditions of grants awarded under this ing and design on those projects and on sub- For an additional amount for ‘‘Operation section. sequent claims, if any: Provided further, That and Maintenance, Air Force Reserve’’, (9) Within 1 year after the date of enact- the Secretary shall have unlimited re- $10,674,000, to remain available for obligation ment of this Act, the Commission shall com- programming authority for these funds pro- until September 30, 2010. plete a rulemaking to develop a national vided under this heading. broadband plan. In developing the plan, the OPERATION AND MAINTENANCE, ARMY CONSTRUCTION Commission shall— NATIONAL GUARD (A) consider the most effective and effi- For an additional amount for ‘‘Operation For an additional amount for ‘‘Construc- cient national strategy for ensuring that all and Maintenance, Army National Guard’’, tion’’ for expenses necessary for the con- Americans have access to, and take advan- $215,557,000, to remain available for obliga- struction of river and harbor, flood and tage of, advanced broadband services; tion until September 30, 2010. storm damage reduction, shore protection, (B) have access to data provided to other aquatic ecosystem restoration, and related OPERATION AND MAINTENANCE, AIR NATIONAL Government agencies under the Broadband projects authorized by law, $2,000,000,000, of GUARD Data Improvement Act (47 U.S.C. 1301 note); which such sums as are necessary to cover For an additional amount for ‘‘Operation (C) evaluate the status of deployments of the Federal share of construction costs for and Maintenance, Air National Guard’’, broadband service, including the progress of facilities under the Dredged Material Dis- $20,922,000, to remain available for obligation projects supported by the grants made pursu- posal Facilities program shall be derived until September 30, 2010. ant to this section; and from the Harbor Maintenance Trust Fund as (D) develop recommendations for achieving PROCUREMENT authorized by Public Law 104–303: Provided, the goal of nationally available broadband DEFENSE PRODUCTION ACT PURCHASES That not less than $200,000,000 of the funds service for the United States and for pro- For an additional amount for ‘‘Defense provided shall be for water-related environ- moting broadband adoption nationwide. Production Act Purchases’’, $100,000,000, to mental infrastructure assistance: Provided (10) The Assistant Secretary shall develop remain available for obligation until Sep- further, That section 102 of Public Law 109– and maintain a comprehensive nationwide tember 30, 2010. 103 (33 U.S.C. 2221) shall not apply to funds inventory map of existing broadband service RESEARCH, DEVELOPMENT, TEST AND provided in this title: Provided further, That capability and availability in the United EVALUATION notwithstanding any other provision of law, no funds shall be drawn from the Inland Wa- States that entities and depicts the geo- RESEARCH, DEVELOPMENT, TEST AND terways Trust Fund, as authorized in Public graphic extent to which broadband service EVALUATION, DEFENSE-WIDE Law 99–662: Provided further, That funds pro- capability is deployed and available from a For an additional amount for ‘‘Research, vided under this heading in this title shall commercial provider or public provider Development, Test and Evaluation, Defense- only be used for programs, projects or activi- throughout each State: Provided, That not Wide’’, $200,000,000, to remain available for ties that heretofore or hereafter receive later than 2 years after the date of the enact- obligation until September 30, 2010. ment of the Act, the Assistant Secretary funds provided in Acts making appropria- shall make the broadband inventory map de- OTHER DEPARTMENT OF DEFENSE tions available for Energy and Water Devel- veloped and maintained pursuant to this sec- PROGRAMS opment: Provided further, That funds pro- tion accessible to the public. DEFENSE HEALTH PROGRAM vided under this heading in this title shall be SEC. 202. The Assistant Secretary of Com- For an additional amount for ‘‘Defense used for programs, projects or activities or merce for Communications and Information Health Program’’, $250,000,000 for operation elements of programs, projects or activities

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00032 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.036 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1135 that can be completed within the funds made bors and channels, and inland harbors shall nance, and rehabilitation of reclamation and available in that account and that will not be derived from the Harbor Maintenance other facilities, participation in fulfilling re- require new budget authority to complete: Trust Fund, pursuant to Public Law 99–662; lated Federal responsibilities to Native Provided further, That the limitation con- and of which such sums as become available Americans, and related grants to, and coop- cerning total project costs in section 902 of under section 217 of the Water Resources De- erative and other agreements with, State the Water Resources Development Act of velopment Act of 1996, Public Law 104–303, and local governments, federally recognized 1986, as amended (33 U.S.C. 2280), shall not shall be used to cover the cost of operation Indian tribes, and others, $1,400,000,000; of apply during fiscal year 2009 to any project and maintenance of the dredged material which such amounts as may be necessary that received funds provided in this title: disposal facilities for which fees have been may be advanced to the Colorado River Dam Provided further, That funds appropriated collected: Provided, That funds provided Fund: Provided, That of the total appro- under this heading may be used by the Sec- under this heading in this title shall only be priated, the amount for program activities retary of the Army, acting through the Chief used for programs, projects or activities that that can be financed by the Reclamation of Engineers, to undertake work authorized heretofore or hereafter receive funds pro- Fund or the Bureau of Reclamation special to be carried out in accordance with section vided in Acts making appropriations avail- fee account established by 16 U.S.C. 460l–6a(i) 14 of the Flood Control Act of 1946 (33 U.S.C. able for Energy and Water Development: Pro- shall be derived from that Fund or account: 701r); section 205 of the Flood Control Act of vided further, That funds provided under this Provided further, That funds contributed 1948 (33 U.S.C. 701s); section 206 of the Water heading in this title shall be used for pro- under 43 U.S.C. 395 are available until ex- Resources Development Act of 1996 (33 U.S.C. grams, projects or activities or elements of pended for the purposes for which contrib- 2330); or section 1135 of the Water Resources programs, projects or activities that can be uted: Provided further, That funds advanced Development Act of 1986 (33 U.S.C. 2309a), completed within the funds made available under 43 U.S.C. 397a shall be credited to this notwithstanding the program cost limita- in that account and that will not require new account and are available until expended for tions set forth in those sections: Provided budget authority to complete: Provided fur- the same purposes as the sums appropriated further, That for projects that are being com- ther, That $90,000,000 of the funds provided under this heading: Provided further, That pleted with funds appropriated in this Act under this heading shall be used for activi- funds provided under this heading in this that would otherwise be expired for obliga- ties described in section 9004 of Public Law title shall only be used for programs, tion, expired funds appropriated in this Act 110–114: Provided further, That section 9006 of projects or activities that heretofore or here- may be used to pay the cost of associated su- Public Law 110–114 shall not apply to funds after receive funds provided in Acts making pervision, inspection, over engineering and provided in this title: Provided further, That appropriations available for Energy and design on those projects and on subsequent for projects that are being completed with Water Development: Provided further, That claims, if any: Provided further, That the Sec- funds appropriated in this Act that would funds provided in this Act shall be used for retary shall have unlimited reprogramming otherwise be expired for obligation, expired elements of projects, programs or activities authority for these funds provided under this funds appropriated in this Act may be used that can be completed within these funding heading. to pay the cost of associated supervision, in- amounts and not create budgetary obliga- MISSISSIPPI RIVER AND TRIBUTARIES spection, over engineering and design on tions in future fiscal years: Provided further, For an additional amount for ‘‘Mississippi those projects and on subsequent claims, if That $50,000,000 of the funds provided under River and Tributaries’’ for expenses nec- any: Provided further, That the Secretary this heading may be transferred to the De- essary for flood damage reduction projects shall have unlimited reprogramming author- partment of the Interior for programs, and related efforts as authorized by law, ity for these funds provided under this head- projects and activities authorized by the $500,000,000, of which such sums as are nec- ing. Central Utah Project Completion Act (titles II–V of Public Law 102–575): Provided further, essary to cover the Federal share of oper- REGULATORY PROGRAM ation and maintenance costs for inland har- That $50,000,000 of the funds provided under For an additional amount for ‘‘Regulatory bors shall be derived from the Harbor Main- this heading may be used for programs, Program’’ for expenses necessary for admin- tenance Trust Fund, pursuant to Public Law projects, and activities authorized by the istration of laws pertaining to regulation of 99–662: Provided, That funds provided under California Bay-Delta Restoration Act (Pub- navigable waters and wetlands, $25,000,000 is this heading in this title shall only be used lic Law 108–361): Provided further, That not provided. for programs, projects or activities that less than $60,000,000 of the funds provided heretofore or hereafter receive funds pro- FORMERLY UTILIZED SITES REMEDIAL ACTION under this heading shall be used for rural vided in Acts making appropriations avail- PROGRAM water projects and shall be expended pri- able for Energy and Water Development: Pro- For an additional amount for ‘‘Formerly marily on water intake and treatment facili- vided further, That funds provided under this Utilized Sites Remedial Action Program’’ for ties of such projects: Provided further, That heading in this title shall be used for pro- expenses necessary to clean up contamina- not less than $10,000,000 of the funds provided grams, projects or activities or elements of tion from sites in the United States result- under this heading shall be used for a bu- programs, projects or activities that can be ing from work performed as part of the Na- reau-wide inspection of canals program in completed within the funds made available tion’s early atomic energy program, urbanized areas: Provided further, That not in that account and that will not require new $100,000,000: Provided further, That funds pro- less than $110,000,000 of the funds provided budget authority to complete: Provided fur- vided under this heading in this title shall be under this heading shall be used for water ther, That the limitation concerning total used for programs, projects or activities or reclamation and reuse projects (title 16 of project costs in section 902 of the Water Re- elements of programs, projects or activities Public Law 102–575): Provided further, That sources Development Act of 1986, as amended that can be completed within the funds made the costs of reimbursable activities, other (33 U.S.C. 2280), shall not apply during fiscal available in that account and that will not than for maintenance and rehabilitation, year 2009 to any project that received funds require new budget authority to complete: carried out with funds provided in this Act provided in this title: Provided further, That Provided further, That for projects that are shall be repaid pursuant to existing authori- for projects that are being completed with being completed with funds appropriated in ties and agreements: Provided further, That funds appropriated in this Act that would this Act that would otherwise be expired for the costs of maintenance and rehabilitation otherwise be expired for obligation, expired obligation, expired funds appropriated in activities carried out with funds provided in funds appropriated in this Act may be used this Act may be used to pay the cost of asso- this Act shall be repaid pursuant to existing to pay the cost of associated supervision, in- ciated supervision, inspection, over engineer- authority, except the length of repayment spection, over engineering and design on ing and design on those projects and on sub- period shall be determined on needs-based those projects and on subsequent claims, if sequent claims, if any: Provided further, That criteria to be established and adopted by the any: Provided further, That the Secretary the Secretary shall have unlimited re- Commissioner, but in no case shall the re- shall have unlimited reprogramming author- programming authority for these funds pro- payment period exceed 25 years: Provided fur- ity for these funds provided under this head- vided under this heading. ther, That for projects that are being com- pleted with funds appropriated in this Act ing. FLOOD CONTROL AND COASTAL EMERGENCIES that would otherwise be expired for obliga- OPERATION AND MAINTENANCE For an additional amount for ‘‘Flood Con- tion, expired funds appropriated in this Act For an additional amount for ‘‘Operation trol and Coastal Emergencies’’ for expenses may be used to pay the cost of associated su- and Maintenance’’ for expenses necessary for necessary for pre-placement of materials and pervision, inspection, over engineering and the operation, maintenance, and care of ex- equipment, advance measures and other ac- design on those projects and on subsequent isting river and harbor, flood and storm dam- tivities authorized by law, $50,000,000 is pro- claims, if any: Provided further, That the Sec- age reduction, aquatic ecosystem restora- vided. retary shall have unlimited reprogramming tion, and related projects authorized by law, DEPARTMENT OF THE INTERIOR authority for these funds provided under this and for surveys and charting of northern and BUREAU OF RECLAMATION heading. northwestern lakes and connecting waters, DEPARTMENT OF ENERGY clearing and straightening channels, and re- WATER AND RELATED RESOURCES moval of obstructions to navigation, For an additional amount for management, ENERGY PROGRAMS $1,900,000,000, of which such sums as are nec- development, and restoration of water and ENERGY EFFICIENCY AND RENEWABLE ENERGY essary to cover the Federal share of oper- related natural resources and for related ac- For an additional amount for ‘‘Energy Effi- ation and maintenance costs for coastal har- tivities, including the operation, mainte- ciency and Renewable Energy’’,

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00033 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.036 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1136 CONGRESSIONAL RECORD — SENATE January 30, 2009 $14,398,000,000, for necessary expenses, to re- petitive service: Provided further, That such borrowers pursuant to section 1702(b)(2) of main available until September 30, 2010: Pro- authority shall not apply to positions in the the Energy Policy Act of 2005 under this vided, That $4,200,000,000 shall be available Excepted Service or the Senior Executive heading in this and prior Acts, shall be col- for Energy Efficiency and Conservation Service: Provided further, That any action au- lected in accordance with section 502(7) of Block Grants for implementation of pro- thorized herein shall be consistent with the the Congressional Budget Act of 1974: Pro- grams authorized under subtitle E of title V merit principles of section 2301 of such title vided further, That the source of such pay- of the Energy Independence and Security Act 5, and the Department shall comply with the ment received from borrowers is not a loan of 2007 (42 U.S.C. 17151 et seq.), of which public notice requirements of section 3327 of or other debt obligation that is guaranteed $2,100,000,000 is available through the for- such title 5: Provided, That for the purpose of by the Federal Government: Provided further, mula in subtitle E: Provided further, That the facilitating the development of regional That pursuant to section 1702(b)(2) of the En- remaining $2,100,000,000 shall be awarded on a transmission plans, the Office of Electricity ergy Policy Act of 2005, no appropriations competitive basis only to competitive grant Delivery and Energy Reliability within the are available to pay the subsidy cost of such applicants from States in which the Gov- Department of Energy is provided $80,000,000 guarantees: Provided further, That none of ernor certifies to the Secretary of Energy within the available funds to conduct a re- the loan guarantee authority made available that the applicable State regulatory author- source assessment and an analysis of future in this Act shall be available for commit- ity will implement the integrated resource demand and transmission requirements: Pro- ments to guarantee loans under section planning and rate design modifications vided further, That the Office of Electricity 1702(b)(2) of the Energy Policy Act of 2005 for standards required to be considered under Delivery and Energy Reliability will provide any projects where funds, personnel, or prop- paragraphs (16) and (17) of section 111(d) of technical assistance to the North American erty (tangible or intangible) of any Federal the Public Utility Regulatory Policies Act of Electric Reliability Corporation, the re- agency, instrumentality, personnel or affili- 1978 (16 U.S.C. 2621(d)(16) and (17)); and the gional reliability entities, the States, and ated entity are expected to be used (directly Governor will take all actions within his or other transmission owners and operators for or indirectly) through acquisitions, con- her authority to ensure that the State, or the formation of interconnection-based tracts, demonstrations, exchanges, grants, the applicable units of local government transmission plans for the Eastern and West- incentives, leases, procurements, sales, other that have authority to adopt building codes, ern Interconnections and ERCOT: Provided transaction authority, or other arrange- will implement— further, That such assistance may include ments, to support the project or to obtain (A) building energy codes for residential modeling, support to regions and States for goods or services from the project: Provided buildings that the Secretary determines are the development of coordinated State elec- further, That none of the loan guarantee au- likely to meet or exceed the 2009 Inter- tricity policies, programs, laws, and regula- thority made available in this Act shall be national Energy Conservation Code; tions: Provided further, That $10,000,000 is pro- available under section 1702(b)(2) of the En- (B) building energy codes for commercial vided to implement section 1305 of Public ergy Policy Act of 2005 for any project unless buildings that the Secretary determines are Law 110–140. the Director of the Office of Management and Budget has certified in advance in writ- likely to meet or exceed the ANSI/ASHRAE/ FOSSIL ENERGY RESEARCH AND DEVELOPMENT IESNA Standard 90.1–2007; and ing that the loan guarantee and the project For an additional amount for ‘‘Fossil En- (C) a plan for implementing and enforcing comply with the provisions under this title: ergy Research and Development’’, the building energy codes described in sub- Provided further, That for an additional $4,600,000,000, to remain available until Sep- amount for the cost of guaranteed loans au- paragraphs (A) and (B) that is likely to en- tember 30, 2010: Provided, That $2,000,000,000 thorized by section 1702(b)(1) and section 1705 sure that at least 90 percent of the new and is available for one or more near zero emis- of the Energy Policy Act of 2005, renovated residential and commercial build- sions powerplant(s): Provided further, $9,500,000,000, available until expended, to ing space will meet the standards within 8 $1,000,000,000 is available for selections under pay the costs of guarantees made under this years after the date of enactment of this the Department’s Clean Coal Power Initia- section: Provided further, That of the amount Act: tive Round III Funding Opportunity An- provided for Title XVII, $15,000,000 shall be Provided further, That $2,000,000,000 shall be nouncement; notwithstanding the manda- used for administrative expenses in carrying available for grants for the manufacturing of tory eligibility requirements of the Funding out the guaranteed loan program. advanced batteries and components and the Opportunity Announcement, the Department Secretary shall provide facility funding OFFICE OF THE INSPECTOR GENERAL shall consider applications that utilize pe- awards under this section to manufacturers For necessary expenses of the Office of the troleum coke for some or all of the project’s of advanced battery systems and vehicle bat- Inspector General in carrying out the provi- fuel input: Provided further, $1,520,000,000 is teries that are produced in the United sions of the Inspector General Act of 1978, as available for a competitive solicitation pur- States, including advanced lithium ion bat- amended, $5,000,000, to remain available until suant to section 703 of Public Law 110–140 for teries, hybrid electrical systems, component expended. projects that demonstrate carbon capture manufacturers, and software designers: Pro- ATOMIC ENERGY DEFENSE ACTIVITIES from industrial sources: Provided further, vided further, That notwithstanding section NATIONAL NUCLEAR SECURITY That awards for such projects may include 3304 of title 5, United States Code, and with- ADMINISTRATION plant efficiency improvements for integra- out regard to the provisions of sections 3309 tion with carbon capture technology. WEAPONS ACTIVITIES through 3318 of such title 5, the Secretary of For an additional amount for weapons ac- NON-DEFENSE ENVIRONMENTAL CLEANUP Energy, upon a determination that there is a tivities, $1,000,000,000, to remain available severe shortage of candidates or a critical For an additional amount for ‘‘Non-De- until September 30, 2010. hiring need for particular positions, may fense Environmental Cleanup’’, $483,000,000, ENVIRONMENTAL AND OTHER DEFENSE from within the funds provided, recruit and to remain available until September 30, 2010. ACTIVITIES directly appoint highly qualified individuals URANIUM ENRICHMENT DECONTAMINATION AND DEFENSE ENVIRONMENTAL CLEANUP into the competitive service: Provided fur- DECOMMISSIONING FUND For an additional amount for ‘‘Defense En- ther, That such authority shall not apply to For an additional amount for ‘‘Uranium positions in the Excepted Service or the Sen- vironmental Cleanup’’, $5,527,000,000, to re- Enrichment Decontamination and Decom- main available until September 30, 2010. ior Executive Service: Provided further, That missioning Fund’’, $390,000,000, to remain CONSTRUCTION, REHABILITATION, OPERATION, any action authorized herein shall be con- available until September 30, 2010, of which AND MAINTENANCE, WESTERN AREA POWER sistent with the merit principles of section $70,000,000 shall be available in accordance ADMINISTRATION 2301 of such title 5, and the Department shall with title X, subtitle A of the Energy Policy comply with the public notice requirements Act of 1992. For carrying out the functions authorized of section 3327 of such title 5. by title III, section 302(a)(1)(E) of the Act of SCIENCE ELECTRICITY DELIVERY AND ENERGY August 4, 1977 (42 U.S.C. 7152), and other re- RELIABILITY For an additional amount for ‘‘Science’’, lated activities including conservation and $430,000,000, to remain available until Sep- For an additional amount for ‘‘Electricity renewable resources programs as authorized, tember 30, 2010. Delivery and Energy Reliability’’, $10,000,000, to remain available until ex- $4,500,000,000, for necessary expenses, to re- TITLE 17—INNOVATIVE TECHNOLOGY LOAN pended: Provided, That the Administrator main available until September 30, 2010: Pro- GUARANTEE PROGRAM shall establish such personnel staffing levels vided, That $100,000,000 shall be available for Subject to section 502 of the Congressional as he deems necessary to economically and worker training activities: Provided further, Budget Act of 1974, commitments to guar- efficiently complete the activities pursued That notwithstanding section 3304 of title 5, antee loans under section 1702(b)(2) of the under the authority granted by section 402 of United States Code, and without regard to Energy Policy Act of 2005, shall not exceed a this Act: Provided further, That this appro- the provisions of sections 3309 through 3318 of total principal amount of $50,000,000,000 for priation is non-reimbursable. such title 5, the Secretary of Energy, upon a eligible projects, to remain available until GENERAL PROVISIONS—THIS TITLE determination that there is a severe short- committed: Provided, That these amounts SEC. 401. BONNEVILLE POWER ADMINISTRA- age of candidates or a critical hiring need for are in addition to any authority provided TION BORROWING AUTHORITY. For the pur- particular positions, may from within the elsewhere in this Act and this and previous poses of providing funds to assist in financ- funds provided, recruit and directly appoint fiscal years: Provided further, That such sums ing the construction, acquisition, and re- highly qualified individuals into the com- as are derived from amounts received from placement of the transmission system of the

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00034 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.036 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1137 Bonneville Power Administration and to im- ‘‘(A) each other such project; and transmission assets are controlled by a tax- plement the authority of the Administrator ‘‘(B) all other Western Area Power Admin- exempt entity.’’. of the Bonneville Power Administration istration power and transmission facilities. (2) By amending subparagraph (C) of sec- under the Pacific Northwest Electric Power ‘‘(2) PROCEEDS.—The Western Area Power tion 1304(b)(3) to read as follows: Planning and Conservation Act (16 U.S.C. 839 Administration shall apply the proceeds ‘‘(C) FEDERAL SHARE OF COST OF TECH- et seq.), an additional $3,250,000,000 in bor- from the use of the transmission capacity NOLOGY INVESTMENTS.—The Secretary shall rowing authority is made available under the from an individual project under this section provide to an electric utility described in Federal Columbia River Transmission Sys- to the repayment of the principal and inter- subparagraph (B) or to other parties finan- tem Act (16 U.S.C. 838 et seq.), to remain out- est of the loan from the Treasury attrib- cial assistance for use in paying an amount standing at any time. utable to that project, after reserving such equal to not more than 50 percent of the cost SEC. 402. WESTERN AREA POWER ADMINIS- funds as the Western Area Power Adminis- of qualifying advanced grid technology in- TRATION BORROWING AUTHORITY. The Hoover tration determines are necessary— vestments made by the electric utility or Power Plant Act of 1984 (Public Law 98–381) ‘‘(A) to pay for any ancillary services that other party to carry out a demonstration is amended by adding at the end the fol- are provided; and project. ’’. lowing: ‘‘(B) to meet the costs of operating and (3) By inserting a new subparagraph (E) ‘‘TITLE III—BORROWING AUTHORITY maintaining the new project from which the after 1304(b)(3)(D) as follows: ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRA- revenues are derived. ‘‘(E) AVAILABILITY OF DATA.—The Sec- TION BORROWING AUTHORITY. ‘‘(3) SOURCE OF REVENUE.—Revenue from retary shall establish and maintain a smart ‘‘(a) DEFINITIONS.—In this section: the use of projects under this section shall be grid information clearinghouse in a timely ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- the only source of revenue for— manner which will make data from smart trator’ means the Administrator of the West- ‘‘(A) repayment of the associated loan for grid demonstration projects and other ern Area Power Administration. the project; and sources available to the public. As a condi- ‘‘(2) SECRETARY.—The term ‘Secretary’ ‘‘(B) payment of expenses for ancillary tion of receiving financial assistance under means the Secretary of the Treasury. services and operation and maintenance. this subsection, a utility or other partici- ‘‘(b) AUTHORITY.— ‘‘(4) LIMITATION ON AUTHORITY.—Nothing in pant in a smart grid demonstration project ‘‘(1) IN GENERAL.—Notwithstanding any this section confers on the Administrator shall provide such information as the Sec- other provision of law, subject to paragraphs any additional authority or obligation to retary may require to become available (2) through (5)— provide ancillary services to users of trans- through the smart grid information clearing- ‘‘(A) the Western Area Power Administra- mission facilities developed under this sec- house in the form and within the timeframes tion may borrow funds from the Treasury; tion. as directed by the Secretary. The Secretary and ‘‘(5) TREATMENT OF CERTAIN REVENUES.— shall assure that business proprietary infor- ‘‘(B) the Secretary shall, without further Revenue from ancillary services provided by mation and individual customer information appropriation and without fiscal year limita- existing Federal power systems to users of is not included in the information made tion, loan to the Western Area Power Admin- transmission projects funded pursuant to available through the clearinghouse.’’. istration, on such terms as may be fixed by this section shall be treated as revenue to (4) By amending paragraph (2) of section the Administrator and the Secretary, such the existing power system that provided the 1304(c) to read as follows: sums (not to exceed, in the aggregate (in- ancillary services. ‘‘(2) to carry out subsection (b), such sums cluding deferred interest), $3,250,000,000 in ‘‘(d) CERTIFICATION.— as may be necessary.’’. outstanding repayable balances at any one ‘‘(1) IN GENERAL.—For each project in (5) By amending subsection (a) of section time) as, in the judgment of the Adminis- which the Western Area Power Administra- 1306 by striking ‘‘reimbursement of one-fifth trator, are from time to time required for tion participates pursuant to this section, (20 percent)’’ and inserting ‘‘grants of up to the purpose of— the Administrator shall certify, prior to one-half (50 percent)’’. ‘‘(i) constructing, financing, facilitating, committing funds for any such project, (6) By striking the last sentence of sub- planning, operating, maintaining, or study- that— section (b)(9) of section 1306. ing construction of new or upgraded electric ‘‘(A) the project is in the public interest; (7) By striking ‘‘are eligible for’’ in sub- power transmission lines and related facili- ‘‘(B) the project will not adversely impact section (c)(1) of section 1306 and inserting ties with at least one terminus within the system reliability or operations, or other ‘‘utilize’’. area served by the Western Area Power Ad- statutory obligations; and (8) By amending subsection (e) of section ministration; and ‘‘(C) it is reasonable to expect that the pro- ‘‘(ii) delivering or facilitating the delivery 1306 to read as follows: ceeds from the project shall be adequate to ‘‘(e) The Secretary shall— of power generated by renewable energy re- make repayment of the loan. ‘‘(1) establish within 60 days after the en- sources constructed or reasonably expected ‘‘(2) FORGIVENESS OF BALANCES.— actment of the American Recovery and Rein- to be constructed after the date of enact- ‘‘(A) IN GENERAL.—If, at the end of the use- vestment Act of 2009 procedures by which ap- ment of this section. ful life of a project, there is a remaining bal- plicants can obtain grants of not more than ‘‘(2) INTEREST.—The rate of interest to be ance owed to the Treasury under this sec- one-half of their documented costs; charged in connection with any loan made tion, the balance shall be forgiven. ‘‘(2) establish procedures to ensure that pursuant to this subsection shall be fixed by ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds ex- there is no duplication or multiple payment the Secretary, taking into consideration pended to study projects that are considered for the same investment or costs, that the market yields on outstanding marketable pursuant to this section but that are not grant goes to the party making the actual obligations of the United States of com- constructed shall be forgiven. expenditures for Qualifying Smart Grid In- parable maturities as of the date of the loan. ‘‘(C) NOTIFICATION.—The Administrator vestments, and that the grants made have ‘‘(3) REFINANCING.—The Western Area shall notify the Secretary of such amounts significant effect in encouraging and facili- Power Administration may refinance loans as are to be forgiven under this paragraph. tating the development of a smart grid; taken pursuant to this section within the ‘‘(e) PUBLIC PROCESSES.— ‘‘(3) maintain public records of grants Treasury. ‘‘(1) POLICIES AND PRACTICES.—Prior to re- made, recipients, and qualifying Smart Grid ‘‘(4) PARTICIPATION.—The Administrator questing any loans under this section, the investments which have received grants; may permit other entities to participate in Administrator shall use a public process to ‘‘(4) establish procedures to provide ad- the financing, construction and ownership develop practices and policies that imple- vance payment of moneys up to the full projects financed under this section. ment the authority granted by this section. amount of the grant award; and ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE- ‘‘(2) REQUESTS FOR INTEREST.—In the ‘‘(5) have and exercise the discretion to MENT.—Effective upon the date of enactment course of selecting potential projects to be deny grants for investments that do not of this section, the Administrator shall have funded under this section, the Administrator qualify in the reasonable judgment of the the authority to have utilized $1,750,000,000 shall seek Requests For Interest from enti- Secretary.’’. at any one time. If the Administrator seeks ties interested in identifying potential SEC. 404. TEMPORARY STIMULUS LOAN GUAR- to borrow funds above $1,750,000,000, the projects through one or more notices pub- ANTEE PROGRAM. (a) AMENDMENT.—Title XVII funds will be disbursed unless there is en- lished in the Federal Register.’’ of the Energy Policy Act of 2005 (42 U.S.C. acted, within 90 calendar days of the first SEC. 403. TECHNICAL CORRECTIONS TO THE 16511 et seq.) is amended by adding the fol- such request, a joint resolution that rescinds ENERGY INDEPENDENCE AND SECURITY ACT OF lowing at the end: 2007. Title XIII of the Energy Independence the remainder of the balance of the bor- ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID rowing authority provided in this section. and Security Act of 2007 (15 U.S.C. 17381 and DEPLOYMENT OF RENEWABLE EN- ‘‘(c) TRANSMISSION LINE AND RELATED FA- following) is amended as follows: ERGY AND ELECTRIC POWER TRANS- CILITY PROJECTS.— (1) By amending subparagraph (A) of sec- MISSION PROJECTS. ‘‘(1) IN GENERAL.—For repayment purposes, tion 1304(b)(3) to read as follows: ‘‘(a) IN GENERAL.—Notwithstanding section each transmission line and related facility ‘‘(A) IN GENERAL.—In carrying out the ini- 1703, the Secretary may make guarantees project in which the Western Area Power Ad- tiative, the Secretary shall provide financial under this section only for commercial tech- ministration participates pursuant to this support to smart grid demonstration nology projects under subsection (b) that section shall be treated as separate and dis- projects including those in rural areas and/or will reach financial close not later than Sep- tinct from— areas where the majority of generation and tember 30, 2012.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00035 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.036 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1138 CONGRESSIONAL RECORD — SENATE January 30, 2009

‘‘(b) CATEGORIES.—Projects from only the cent of the aggregate funds available during main available until September 30, 2010: Pro- following categories shall be eligible for sup- each of fiscal years 2008 and 2009 from the vided further, That within the overall amount port under this section: Community Development Financial Institu- to be deposited into the Fund, $448,000,000 ‘‘(1) Renewable energy systems. tions Program: Provided further, That no shall remain available until September 30, ‘‘(2) Electric power transmission systems. later than 60 days after the date of enact- 2011, for the development and construction of ‘‘(c) AUTHORIZATION LIMIT.—There are au- ment of this Act, the Department of the the headquarters for the Department of thorized to be appropriated $10,000,000,000 to Treasury shall submit to the Committees on Homeland Security, except that none of the the Secretary for fiscal years 2009 through Appropriations of the House of Representa- preceding provisos shall apply to amounts 2012 to provide the cost of guarantees made tives and the Senate a detailed expenditure made available under this proviso. under section. plan for funds provided under this heading. ENERGY-EFFICIENT FEDERAL MOTOR VEHICLE ‘‘(d) SUNSET.—The authority to enter into DISTRICT OF COLUMBIA FLEET PROCUREMENT guarantees under this section shall expire on FEDERAL PAYMENTS For capital expenditures and necessary ex- September 30, 2012.’’. penses of acquiring motor vehicles with (b) TABLE OF CONTENTS AMENDMENT.—The FEDERAL PAYMENT TO THE DISTRICT OF higher fuel economy, including: hybrid vehi- table of contents for the Energy Policy Act COLUMBIA WATER AND SEWER AUTHORITY cles; neighborhood electric vehicles; electric of 2005 is amended by inserting after the For a Federal payment to the District of vehicles; and commercially-available, plug- item relating to section 1704 the following Columbia Water and Sewer Authority, in hybrid vehicles, $600,000,000, to remain new item: $125,000,000, to remain available until Sep- available until September 30, 2011. ‘‘Sec. 1705. Temporary program for rapid de- tember 30, 2010, to continue implementation OFFICE OF INSPECTOR GENERAL ployment of renewable energy of the Combined Sewer Overflow Long-Term For an additional amount for the Office of and electric power transmission Control Plan: Provided, That the District of the Inspector General, to remain available projects.’’. Columbia Water and Sewer Authority pro- until September 30, 2011, $2,000,000. vide a 100 percent match for this payment: SEC. 405. WEATHERIZATION PROGRAM RECOVERY ACT ACCOUNTABILITY AND Provided further, That no later than 60 days AMENDMENTS. (a) INCOME LEVEL.—Section TRANSPARENCY BOARD after the date of enactment of this Act, the 412(7) of the Energy Conservation and Pro- For necessary expenses of the Recovery duction Act (42 U.S.C. 6862(7)) is amended by District of Columbia Water and Sewer Au- thority shall submit to the Committees on Act Accountability and Transparency Board striking ‘‘150 percent’’ both places it appears to carry out the provisions of title XV of this Appropriations of the House of Representa- and inserting ‘‘200 percent’’. Act, $7,000,000, to remain available until Sep- tives and the Senate a detailed expenditure (b) ASSISTANCE LEVEL PER DWELLING tember 30, 2010. plan for funds provided under this heading: UNIT.—Section 415(c)(1) of the Energy Con- SMALL BUSINESS ADMINISTRATION servation and Production Act (42 U.S.C. Provided further, That such expenditure plan SALARIES AND EXPENSES 6865(c)(1)) is amended by striking ‘‘$2,500’’ shall include a description of each specific and inserting ‘‘$5,000’’. project, how specific projects will further the For an additional amount, to remain avail- able until September 30, 2010, $84,000,000, of (c) TRAINING AND TECHNICAL ASSISTANCE.— objectives of the Long-Term Control Plan, which $24,000,000 is for marketing, manage- Section 416 of the Energy Conservation and and all funding sources for each project. ment, and technical assistance under section Production Act (42 U.S.C. 6866) is amended GENERAL SERVICES ADMINISTRATION 7(m) of the Small Business Act (15 U.S.C. by striking ‘‘10 percent’’ and inserting ‘‘up to REAL PROPERTY ACTIVITIES 636(m)(4)) by intermediaries that make 20 percent’’. FEDERAL BUILDINGS FUND microloans under the microloan program, of SEC. 406. TECHNICAL CORRECTIONS TO PUBLIC LIMITATIONS ON AVAILABILITY OF REVENUE which $15,000,000 is for lender oversight ac- UTILITY REGULATORY POLICIES ACT OF 1978. tivities as authorized in section 501(c) of this (INCLUDING TRANSFER OF FUNDS) (a) Section 111(d) of the Public Utility Regu- title, and of which $20,000,000 is for improv- latory Policies Act of 1978 (16 U.S.C. 2621(d)) For an additional amount to be deposited ing, streamlining, and automating informa- is amended by redesignating paragraph (16) in the Federal Buildings Fund, $9,048,000,000, tion technology systems related to lender relating to consideration of smart grid in- to carry out the purposes of the Fund, of processes and lender oversight: Provided, vestments (added by section 1307(a) of Public which not less than $1,400,000,000 shall be That no later than 60 days after the date of Law 110–140) as paragraph (18) and by redes- available for Federal buildings and United enactment of this Act, the Small Business ignating paragraph (17) relating to smart States courthouses, not less than Administration shall submit to the Commit- grid information (added by section 1308(a) of $1,200,000,000 shall be available for border sta- tees on Appropriations of the House of Rep- Public Law 110–140) as paragraph (19). tions, and not less than $6,000,000,000 shall be resentatives and the Senate a detailed ex- (b) Subsections (b) and (d) of section 112 of available for measures necessary to convert penditure plan for funds provided under the the Public Utility Regulatory Policies Act of GSA facilities to High-Performance Green heading ‘‘Small Business Administration’’ in 1978 (16 U.S.C. 2622) are each amended by Buildings, as defined in section 401 of Public this Act. striking ‘‘(17) through (18)’’ in each place it Law 110–140: Provided, That not to exceed OFFICE OF INSPECTOR GENERAL appears and inserting ‘‘(16) through (19)’’. $108,000,000 of the amounts provided under For an additional amount for the Office of TITLE V—FINANCIAL SERVICES AND this heading may be expended for rental of Inspector General in carrying out the provi- GENERAL GOVERNMENT space, related to leasing of temporary space sions of the Inspector General Act of 1978, in connection with projects funded under DEPARTMENT OF THE TREASURY $10,000,000, to remain available until Sep- this heading: Provided further, That not to tember 30, 2011. COMMUNITY DEVELOPMENT FINANCIAL exceed $206,000,000 of the amounts provided SURETY BOND GUARANTEES REVOLVING FUND INSTITUTIONS FUND PROGRAM ACCOUNT under this heading may be expended for For an additional amount for ‘‘Community building operations, for the administrative For additional capital for the Surety Bond Development Financial Institutions Fund costs of completing projects funded under Guarantees Revolving Fund, authorized by Program Account’’, $250,000,000, to remain this heading: Provided further, That (1) not the Small Business Investment Act of 1958, available until September 30, 2010, for quali- less than $7,000,000,000 of the funds provided $15,000,000, to remain available until ex- fied applicants under the fiscal year 2008 and under this heading shall be obligated by Sep- pended. 2009 funding rounds of the Community Devel- tember 30, 2010, and (2) $1,600,000,000 shall be BUSINESS LOANS PROGRAM ACCOUNT opment Financial Institutions Program, of available until September 30, 2011: Provided For an additional amount for the cost of which up to $20,000,000 may be for financial further, That the Administrator of General direct loans, $6,000,000, to remain available assistance, technical assistance, training and Services is authorized to initiate design, until September 30, 2010, and for an addi- outreach programs, including up to $5,000 for construction, repair, alteration, and other tional amount for the cost of guaranteed subsistence expenses, designed to benefit Na- projects through existing authorities of the loans, $615,000,000, to remain available until tive American, Native Hawaiian, and Alas- Administrator: Provided further, That the September 30, 2010: Provided, That of the kan Native communities and provided pri- General Services Administration shall sub- amount for the cost of guaranteed loans, marily through qualified community devel- mit a detailed plan, by project, regarding the $515,000,000 shall be for loan subsidies and opment lender organizations with experience use of funds made available in this Act to loan modifications for loans to small busi- and expertise in community development the Committees on Appropriations of the ness concerns authorized in section 501(a) of banking and lending in Indian country, Na- House of Representatives and the Senate this title; and $100,000,000 shall be for loan tive American organizations, tribes and trib- within 60 days of enactment of this Act: Pro- subsidies and loan modifications for loans to al organizations and other suitable providers vided further, That of the amounts provided small business concerns authorized in sec- and up to $5,000,000 may be used for adminis- for converting GSA facilities to High-Per- tion 501(b) of this title: Provided further, That trative expenses: Provided, That for purposes formance Green Buildings, $4,000,000 shall be such costs, including the cost of modifying of the fiscal year 2008 and 2009 funding transferred to and merged with ‘‘Govern- such loans, shall be as defined in section 502 rounds, the following statutory provisions ment-Wide Policy’’, for carrying out the pro- of the Congressional Budget Act of 1974. are hereby waived: 12 U.S.C. 4707(e) and 12 visions of section 436 of the Energy Independ- ADMINISTRATIVE PROVISIONS—SMALL U.S.C. 4707(d): Provided further, That no ence and Security Act of 2007 (Public Law BUSINESS ADMINISTRATION awardee, together with its subsidiaries and 110–140), establishing an Office of Federal SEC. 501. ECONOMIC STIMULUS FOR SMALL affiliates, may be awarded more than 15 per- High-Performance Green Buildings, to re- BUSINESS CONCERNS. (a) TEMPORARY FEE

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ELIMINATION FOR THE 7(a) LOAN PROGRAM.— ‘‘(ii) $150,000,000. ‘‘(G) the financing under this title is not Until September 30, 2010, and to the extent ‘‘(B) MULTIPLE LICENSES UNDER COMMON being used to refinance any debt guaranteed that the cost of such elimination of fees is CONTROL.—The maximum amount of out- by the Government; and offset by appropriations, with respect to standing leverage made available to 2 or ‘‘(H) the financing under this title will be each loan guaranteed under section 7(a) of more companies licensed under section 301(c) used only for— the Small Business Act (15 U.S.C. 636(a)) for that are commonly controlled (as deter- ‘‘(i) refinancing existing indebtedness; or which the application is approved on or after mined by the Administrator) may not exceed ‘‘(ii) costs relating to the project financed the date of enactment of this Act, the Ad- $225,000,000. under this title.’’. ministrator shall— ‘‘(C) INVESTMENTS IN LOW–INCOME GEO- SEC. 504. DEFINITIONS. Under the heading (1) in lieu of the fee otherwise applicable GRAPHIC AREAS.— ‘‘Small Business Administration’’ in this under section 7(a)(23)(A) of the Small Busi- ‘‘(i) IN GENERAL.—The maximum amount of title— ness Act (15 U.S.C. 636(a)(23)(A)), collect no outstanding leverage made available to— (1) the terms ‘‘Administration’’ and ‘‘Ad- fee; and ‘‘(I) any 1 company described in clause (ii) ministrator’’ mean the Small Business Ad- (2) in lieu of the fee otherwise applicable may not exceed the lesser of— ministration and the Administrator thereof, under section 7(a)(18)(A) of the Small Busi- ‘‘(aa) 300 percent of private capital of the respectively; ness Act (15 U.S.C. 636(a)(18)(A)), collect no company; or (2) the term ‘‘development company’’ has fee. ‘‘(bb) $175,000,000; and the meaning given the term ‘‘development (b) TEMPORARY FEE ELIMINATION FOR THE ‘‘(II) 2 or more companies described in companies’’ in section 103 of the Small Busi- 504 LOAN PROGRAM.— clause (ii) that are commonly controlled (as ness Investment Act of 1958 (15 U.S.C. 662); (1) IN GENERAL.—Until September 30, 2010, determined by the Administrator) may not and and to the extent the cost of such elimi- exceed $250,000,000. (3) the term ‘‘small business concern’’ has nation in fees is offset by appropriations, ‘‘(ii) APPLICABILITY.—A company described the same meaning as in section 3 of the with respect to each project or loan guaran- in this clause is a company licensed under Small Business Act (15 U.S.C. 632). teed by the Administrator under title V of section 301(c) that certifies in writing that the Small Business Investment Act of 1958 TITLE VI—DEPARTMENT OF HOMELAND not less than 50 percent of the dollar amount (15 U.S.C. 695 et seq.) for which an applica- SECURITY of investments of that company shall be tion is approved or pending approval on or DEPARTMENT OF HOMELAND SECURITY made in companies that are located in a low- after the date of enactment of this Act— income geographic area (as that term is de- OFFICE OF THE UNDER SECRETARY FOR (A) the Administrator shall, in lieu of the MANAGEMENT fee otherwise applicable under section fined in section 351).’’; and 503(d)(2) of the Small Business Investment (B) by striking paragraph (4). For an additional amount for the ‘‘Office of Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee; (2) INVESTMENTS IN SMALLER ENTER- the Under Secretary for Management’’, (B) a development company shall, in lieu of PRISES.—Section 303(d) of the Small Business $248,000,000, to remain available until Sep- the processing fee under section 120.971(a)(1) Investment Act of 1958 (15 U.S.C. 683(d)) is tember 30, 2011, solely for planning, design, of title 13, Code of Federal Regulations (re- amended to read as follows: and construction costs, including site secu- rity, information technology infrastructure, lating to fees paid by borrowers), or any suc- ‘‘(d) INVESTMENTS IN SMALLER ENTER- furniture, fixtures, and related costs to con- cessor thereto, collect no fee. PRISES.—The Administrator shall require solidate the Department of Homeland Secu- (2) REIMBURSEMENT FOR WAIVED FEES.— each licensee, as a condition of approval of rity headquarters: Provided, That no later (A) IN GENERAL.—To the extent that the an application for leverage, to certify in than 60 days after the date of enactment of cost of such payments is offset by appropria- writing that not less than 25 percent of the this Act, the Secretary of Homeland Secu- tions, the Administrator shall reimburse aggregate dollar amount of financings of rity, in consultation with the Administrator each development company that does not that licensee shall be provided to smaller en- of General Services, shall submit to the collect a processing fee pursuant to para- terprises.’’. Committees on Appropriations of the Senate graph (1)(B). (3) MAXIMUM INVESTMENT IN A COMPANY.— and the House of Representatives a plan for (B) AMOUNT.—The payment to a develop- Section 306(a) of the Small Business Invest- the expenditure of these funds. ment company under subparagraph (A) shall ment Act of 1958 (15 U.S.C. 686(a)) is amended be in an amount equal to 1.5 percent of the by striking ‘‘20 per centum’’ and inserting OFFICE OF INSPECTOR GENERAL net debenture proceeds for which the devel- ‘‘30 percent’’. For an additional amount for the ‘‘Office of opment company does not collect a proc- (c) MAXIMUM 504 LOAN SIZE.—Section Inspector General’’, $5,000,000, to remain essing fee pursuant to paragraph (1)(B). available until September 30, 2010, for over- (c) TEMPORARY FEE ELIMINATION OF LENDER 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended— sight and audit of programs, grants, and OVERSIGHT FEES.—Until September 30, 2010, projects funded under this title. and to the extent the cost of such elimi- (1) in clause (i), by striking ‘‘$1,500,000’’ and nation in fees is offset by appropriations, the inserting ‘‘$3,000,000’’; U.S. CUSTOMS AND BORDER PROTECTION Administrator shall, in lieu of the fee other- (2) in clause (ii), by striking ‘‘$2,000,000’’ SALARIES AND EXPENSES wise applicable under section 5(b)(14) of the and inserting ‘‘$3,500,000’’; and For an additional amount for ‘‘Salaries Small Business Act (15 U.S.C. 634(b)(14)), col- (3) in clause (iii), by striking ‘‘$4,000,000’’ and Expenses’’, $198,000,000, to remain avail- lect no fee. and inserting ‘‘$5,500,000’’. able until September 30, 2010, of which (d) APPLICATION OF FEE ELIMINATIONS.— SEC. 503. LOW-INTEREST REFINANCING. Sec- $100,800,000 shall be for the procurement and The Administrator shall eliminate fees tion 502 of the Small Business Investment deployment of non-intrusive inspection sys- under subsections (a), (b), and (c) until the Act of 1958 (15 U.S.C. 696) is amended by add- tems to improve port security; and of which amount provided for such purposes, as appli- ing at the end the following: $97,200,000 shall be for procurement and de- cable, under the headings ‘‘Salaries and Ex- ‘‘(7) PERMISSIBLE DEBT FINANCING.—A fi- ployment of tactical communications equip- penses’’ and ‘‘Business Loans Program Ac- nancing under this title may include refi- ment and radios: Provided, That no later count’’ under the heading ‘‘Small Business Administration’’ under this Act are ex- nancing of existing indebtedness, in an than 45 days after the date of enactment of pended. amount not to exceed 50 percent of the pro- this Act, the Secretary of Homeland Secu- SEC. 502. FINANCIAL ASSISTANCE PROGRAM jected cost of the project financed under this rity shall submit to the Committees on Ap- IMPROVEMENTS. (a) 7(a) LOAN MAXIMUM title, if— propriations of the Senate and the House of AMOUNT.—Section 7(a)(3)(A) of the Small ‘‘(A) the project financed under this title Representatives a plan for expenditure of Business Act (15 U.S.C. 636(a)(3)(A)) is involves the expansion of a small business these funds. amended by striking ‘‘$1,500,000 (or if the concern; BORDER SECURITY FENCING, INFRASTRUCTURE, gross loan amount would exceed $2,000,000)’’ ‘‘(B) the existing indebtedness is AND TECHNOLOGY collateralized by fixed assets; and inserting ‘‘$2,250,000 (or if the gross loan For an additional amount for ‘‘Border Se- ‘‘(C) the existing indebtedness was incurred amount would exceed $3,000,000)’’. curity Fencing, Infrastructure, and Tech- (b) SMALL BUSINESS INVESTMENT COMPA- for the benefit of the small business concern; nology’’, $200,000,000, to remain available NIES.— ‘‘(D) the proceeds of the existing indebted- until September 30, 2010, for expedited devel- (1) MAXIMUM LEVERAGE.—Section 303(b) of ness were used to acquire land (including a opment and deployment of border security the Small Business Investment Act of 1958 building situated thereon), to construct or technology on the Southwest border: Pro- (15 U.S.C. 683(b)) is amended— expand a building thereon, or to purchase vided, That no later than 45 days after the (A) in paragraph (2), by striking subpara- equipment; date of enactment of this Act, the Secretary graphs (A), (B), and (C) and inserting the fol- ‘‘(E) the borrower has been current on all of Homeland Security shall submit to the lowing: payments due on the existing indebtedness Committees on Appropriations of the Senate ‘‘(A) IN GENERAL.—The maximum amount for not less than 1 year preceding the pro- and the House of Representatives a plan for of outstanding leverage made available to posed date of refinancing; expenditure of these funds. any 1 company licensed under section 301(c) ‘‘(F) the financing under this title will pro- may not exceed the lesser of— vide better terms or a better rate of interest CONSTRUCTION ‘‘(i) 300 percent of the private capital of the than exists on the existing indebtedness on For an additional amount for ‘‘Construc- company; or the proposed date of refinancing; tion’’, $800,000,000, to remain available until

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00037 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.037 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1140 CONGRESSIONAL RECORD — SENATE January 30, 2009 expended, solely for planning, management, hicles to be deployed in response to a dis- facilities: Provided, That no later than 45 design, alteration, and construction of U.S. aster or a national security event. days after the date of enactment of this Act, Customs and Border Protection owned land STATE AND LOCAL PROGRAMS the Secretary of Homeland Security shall border ports of entry: Provided, That no later For an additional amount for grants, submit to the Committees on Appropriations than 45 days after the date of enactment of $950,000,000, to be allocated as follows: of the Senate and the House of Representa- this Act, the Secretary of Homeland Secu- (1) $100,000,000, to remain available until tives a plan for the expenditure of these rity shall submit to the Committees on Ap- September 30, 2010, for Public Transportation funds. propriations of the Senate and the House of Security Assistance, Railroad Security As- SCIENCE AND TECHNOLOGY Representatives a plan for expenditure of sistance, and Systemwide Amtrak Security RESEARCH, DEVELOPMENT, ACQUISITION, AND these funds. Upgrades under sections 1406, 1513, and 1514 OPERATIONS U.S. IMMIGRATION AND CUSTOMS of the Implementing Recommendations of For an additional amount for ‘‘Research, ENFORCEMENT the 9/11 Commission Act of 2007 (Public Law Development, Acquisition, and Operations’’, AUTOMATION MODERNIZATION 110–53; 6 U.S.C. 1135, 1163, and 1164). $14,000,000, to remain available until Sep- For an additional amount for ‘‘Automation (2) $100,000,000, to remain available until tember 30, 2010, for cyber security research: Modernization’’, $27,800,000, to remain avail- September 30, 2010, for Port Security Grants Provided, That no later than 45 days after the able until September 30, 2010, for the pro- in accordance with 46 U.S.C. 70107, notwith- date of enactment of this Act, the Secretary curement and deployment of tactical com- standing 46 U.S.C. 70107(c). of Homeland Security shall submit to the munications equipment and radios: Provided, (3) $250,000,000, to remain available until Committees on Appropriations of the Senate That no later than 45 days after the date of September 30, 2010, for upgrading, modifying, and the House of Representatives a plan for enactment of this Act, the Secretary of or constructing emergency operations cen- the expenditure of these funds. Homeland Security shall submit to the Com- ters under section 614 of the Robert T. Staf- GENERAL PROVISIONS—THIS TITLE ford Disaster Relief and Emergency Assist- mittees on Appropriations of the Senate and SEC. 601. Notwithstanding any other provi- ance Act, notwithstanding section 614(c) of the House of Representatives a plan for ex- sion of law, the President shall establish an that Act or for upgrading, modifying, or con- penditure of these funds. arbitration panel under the Federal Emer- structing State and local fusion centers as TRANSPORTATION SECURITY ADMINISTRATION gency Management Agency public assistance defined by section 210A(j)(1) of the Homeland program to expedite the recovery efforts AVIATION SECURITY Security Act of 2002 (6 U.S.C. 124h(j)(1)). from Hurricanes Katrina, Rita, Gustav, and For an additional amount for ‘‘Aviation (4) $500,000,000 for construction to upgrade Ike within the Gulf Coast Region. The arbi- Security’’, $1,200,000,000, to remain available or modify critical infrastructure, as defined tration panel shall have sufficient authority until September 30, 2010, for procurement in section 1016(e) of the USA PATRIOT Act regarding the award or denial of disputed and installation of checked baggage explo- of 2001 (42 U.S.C. 5195c(e)), to mitigate con- public assistance applications for covered sives detection systems and checkpoint ex- sequences related to potential damage from hurricane damage under section 403, 406, or plosives detection equipment: Provided, That all-hazards: Provided, That funds in this 407 of the Robert T. Stafford Disaster Relief no later than 45 days after the date of enact- paragraph shall remain available until Sep- and Emergency Assistance Act (42 U.S.C. ment of this Act, the Secretary of Homeland tember 30, 2011: Provided further, That 5 per- 5170b, 5172, or 5173) for a project the total Security shall submit to the Committees on cent shall be for program administration: amount of which is more than $500,000. Appropriations of the Senate and the House Provided further, That no later than 60 days SEC. 602. The Administrator of the Federal of Representatives a plan for the expenditure after the date of enactment of this Act, the Emergency Management Agency may not of these funds. Secretary of Homeland Security shall sub- prohibit or restrict the use of funds des- COAST GUARD mit to the Committees on Appropriations of ignated under the hazard mitigation grant the Senate and the House of Representatives ACQUISITION, CONSTRUCTION, AND program for damage caused by Hurricanes a plan for expenditure of these funds. IMPROVEMENTS Katrina and Rita if the homeowner who is an FIREFIGHTER ASSISTANCE GRANTS For an additional amount for ‘‘Acquisition, applicant for assistance under such program Construction, and Improvements’’, For an additional amount for competitive commenced work otherwise eligible for haz- $572,500,000, to remain available until Sep- grants, $500,000,000, to remain available until ard mitigation grant program assistance tember 30, 2010, of which $255,000,000 shall be September 30, 2010, for modifying, upgrading, under section 404 of the Robert T. Stafford for shortfalls in priority procurements due or constructing State and local fire stations: Disaster Relief and Emergency Assistance to materials and labor cost increases; of Provided, That up to 5 percent shall be for Act (42 U.S.C. 5170c) without approval in which $195,000,000 shall be for shore facilities program administration: Provided further, writing from the Administrator. and aids to navigation facilities; of which That no grant shall exceed $15,000,000. TITLE VII—INTERIOR, ENVIRONMENT, $87,500,000 shall be for the design of a new DISASTER ASSISTANCE DIRECT LOAN PROGRAM AND RELATED AGENCIES polar icebreaker or the renovation of an ex- ACCOUNT DEPARTMENT OF THE INTERIOR isting polar icebreaker, and major repair and Notwithstanding section 417(b) of the Rob- BUREAU OF LAND MANAGEMENT maintenance of existing polar icebreakers; ert T. Stafford Disaster Relief and Emer- MANAGEMENT OF LANDS AND RESOURCES and of which $35,000,000 shall be for emer- gency Assistance Act, the amount of any For an additional amount for ‘‘Manage- gency maintenance of the Coast Guard’s high such loan issued pursuant to this section for ment of Lands and Resources’’, $135,000,000, endurance cutters: Provided, That amounts major disasters occurring in calendar year to remain available until September 30, 2010. made available for the activities under this 2008 may exceed $5,000,000, and may be equal heading shall be available for all necessary to not more than 50 percent of the annual op- CONSTRUCTION expenses related to the oversight and man- erating budget of the local government in For an additional amount for ‘‘Construc- agement of such activities: Provided further, any case in which that local government has tion’’, $180,000,000, to remain available until That no later than 45 days after the date of suffered a loss of 25 percent or more in tax September 30, 2010. enactment of this Act, the Secretary of revenues: Provided, That the cost of modi- WILDLAND FIRE MANAGEMENT Homeland Security shall submit to the Com- fying such loans shall be as defined in sec- For an additional amount for ‘‘Wildland mittees on Appropriations of the Senate and tion 502 of the Congressional Budget Act of Fire Management’’, $15,000,000, to remain the House of Representatives a plan for the 1974 (2 U.S.C. 661a). available until September 30, 2010. expenditure of these funds. EMERGENCY FOOD AND SHELTER UNITED STATES FISH AND WILDLIFE SERVICE ALTERATION OF BRIDGES For an additional amount to carry out the RESOURCE MANAGEMENT For an additional amount for ‘‘Alteration emergency food and shelter program pursu- For an additional amount for ‘‘Resource of Bridges’’, $240,400,000, to remain available ant to title III of the McKinney-Vento Home- Management’’, $190,000,000, to remain avail- until September 30, 2010, for alteration or re- less Assistance Act (42 U.S.C. 11331 et seq.), able until September 30, 2010. moval of obstructive bridges, as authorized $100,000,000: Provided, That total administra- CONSTRUCTION by section 6 of the Truman-Hobbs Act (33 tive costs shall not exceed 3.5 percent of the U.S.C. 516): Provided, That no later than 45 total amount made available under this For an additional amount for ‘‘Construc- days after the date of enactment of this Act, heading. tion’’, $110,000,000, to remain available until September 30, 2010. the Secretary of Homeland Security shall FEDERAL LAW ENFORCEMENT TRAINING submit to the Committees on Appropriations CENTER NATIONAL PARK SERVICE of the Senate and the House of Representa- ACQUISITION, CONSTRUCTION, IMPROVEMENTS, OPERATION OF THE NATIONAL PARK SYSTEM tives a plan for the expenditure of these AND RELATED EXPENSES For an additional amount for ‘‘Operation funds. For an additional amount for ‘‘Acquisition, of the National Park System’’, $158,000,000, FEDERAL EMERGENCY MANAGEMENT AGENCY Construction, Improvements, and Related to remain available until September 30, 2010. MANAGEMENT AND ADMINISTRATION Expenses’’, $15,000,000, to remain available HISTORIC PRESERVATION FUND For an additional amount for ‘‘Manage- until September 30, 2010, for security sys- For an additional amount for ‘‘Historic ment and Administration’’, $6,000,000 for the tems and law enforcement upgrades for all Preservation Fund’’, $55,000,000, to remain acquisition of communications response ve- Federal Law Enforcement Training Center available until September 30, 2010.

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CONSTRUCTION which $100,000,000 shall be available for ating incentives for increased use of biomass For an additional amount for ‘‘Construc- Brownfields remediation grants pursuant to from national forest lands. tion’’, $589,000,000, to remain available until section 104(k)(3) of the Comprehensive Envi- DEPARTMENT OF HEALTH AND HUMAN September 30, 2010. ronmental Response, Compensation and Li- SERVICES ability Act of 1980, as amended; and of which UNITED STATES GEOLOGICAL SURVEY INDIAN HEALTH SERVICE $300,000,000 shall be for Diesel Emission Re- INDIAN HEALTH SERVICES SURVEYS, INVESTIGATIONS, AND RESEARCH duction Act grants pursuant to title VII, For an additional amount for ‘‘Surveys, In- subtitle G of the Energy Policy Act of 2005, For an additional amount for ‘‘Indian vestigations, and Research’’, $135,000,000, to as amended: Provided, That notwithstanding Health Services’’, $135,000,000, to remain remain available until September 30, 2010. the priority ranking they would otherwise available until September 30, 2010, of which $50,000,000 is for contract health services; and BUREAU OF INDIAN AFFAIRS receive under each program, priority for of which $85,000,000 is for health information OPERATION OF INDIAN PROGRAMS funds appropriated herein for the Clean Water State Revolving Funds and Drinking technology: Provided, That the amount made For an additional amount for ‘‘Operation Water State Revolving Funds (Revolving available for health information technology of Indian Programs’’, $40,000,000, to remain Funds) shall be allocated to projects that are activities may be used for both telehealth available until September 30, 2010, of which ready to proceed to construction within 180 services development and related infrastruc- $20,000,000 shall be for the housing improve- days of enactment of this Act: Provided fur- ture requirements that are typically funded ment program. ther, That the Administrator of the Environ- through the ‘‘Indian Health Facilities’’ ac- CONSTRUCTION mental Protection Agency (Administrator) count: Provided further, That notwith- For an additional amount for ‘‘Construc- may reallocate funds appropriated herein for standing any other provision of law, health tion’’, $522,000,000, to remain available until the Revolving Funds that are not under information technology funds provided with- September 30, 2010. binding commitments to proceed to con- in this title shall be allocated at the discre- tion of the Director of the Indian Health INDIAN GUARANTEED LOAN PROGRAM ACCOUNT struction within 180 days of enactment of this Act: Provided further, That notwith- Service. For an additional amount for ‘‘Indian standing any other provision of law, finan- INDIAN HEALTH FACILITIES Guaranteed Loan Program Account’’, cial assistance provided from funds appro- For an additional amount for ‘‘Indian $10,000,000, to remain available until Sep- priated herein for the Revolving Funds may Health Facilities’’, $410,000,000, to remain tember 30, 2010. include additional subsidization, including available until September 30, 2010: Provided, DEPARTMENTAL OFFICES forgiveness of principal and negative interest That for the purposes of this Act, spending INSULAR AFFAIRS loans: Provided further, That not less than 15 caps included within the annual appropria- ASSISTANCE TO TERRITORIES percent of the funds appropriated herein for tion for ‘‘Indian Health Facilities’’ for the purchase of medical equipment shall not For an additional amount for ‘‘Assistance the Revolving Funds shall be designated for apply. to Territories’’, $62,000,000, to remain avail- green infrastructure, water efficiency im- able until September 30, 2010. provements or other environmentally inno- SMITHSONIAN INSTITUTION vative projects: Provided further, That not- FACILITIES CAPITAL OFFICE OF INSPECTOR GENERAL withstanding the limitation on amounts For an additional amount for ‘‘Facilities SALARIES AND EXPENSES specified in section 518(c) of the Federal Capital’’, $150,000,000, to remain available For an additional amount for ‘‘Office of In- Water Pollution Control Act, up to a total of until September 30, 2010. spector General’’, $7,600,000, to remain avail- 1.5 percent of the funds appropriated herein GENERAL PROVISIONS—THIS TITLE able until September 30, 2010. for the Clean Water State Revolving Funds SEC. 701. (a) Within 30 days of enactment of DEPARTMENT-WIDE PROGRAMS may be reserved by the Administrator for tribal grants under section 518(c) of such this Act, each agency receiving funds under CENTRAL HAZARDOUS MATERIALS FUND Act: Provided further, That section 1452(k) of this title shall submit a general plan for the For an additional amount for ‘‘Central the Safe Drinking Water Act shall not apply expenditure of such funds to the House and Hazardous Materials Fund’’, $20,000,000, to re- to amounts appropriated herein for the Senate Committees on Appropriations. (b) Within 90 days of enactment of this main available until September 30, 2010. Drinking Water State Revolving Funds: Pro- Act, each agency receiving funds under this WORKING CAPITAL FUND vided further, That the Administrator may title shall submit to the Committees a re- exceed the 30 percent limitation on State For an additional amount for ‘‘Working port containing detailed project level infor- grants for funds appropriated herein for Die- Capital Fund’’, $20,000,000, to remain avail- mation associated with the general plan sub- sel Emission Reduction Act grants if the Ad- able until September 30, 2010. mitted pursuant to subsection (a). ministrator determines such action will ex- ENVIROMENTAL PROTECTION AGENCY SEC. 702. In carrying out the work for pedite allocation of funds: Provided further, which funds in this title are being made HAZARDOUS SUBSTANCE SUPERFUND That none of the funds appropriated herein available, the Secretary of the Interior and (INCLUDING TRANSFERS OF FUNDS) shall be subject to cost share requirements: the Secretary of Agriculture may utilize the Provided further, That the Administrator For an additional amount for ‘‘Hazardous Public Lands Corps, Youth Conservation may retain up to 0.25 percent of the funds ap- Substance Superfund’’, $800,000,000, to re- Corps, Job Corps and other related partner- propriated herein for the Clean Water State main available until September 30, 2010, as a ships with Federal, State, local, tribal or Revolving Funds and Drinking Water State payment from general revenues to the Haz- non-profit groups that serve young adults. ardous Substance Superfund, to carry out re- Revolving Funds and up to 1.5 percent of the TITLE VIII—DEPARTMENTS OF LABOR, medial actions: Provided, That the Adminis- funds appropriated herein for the Diesel HEALTH AND HUMAN SERVICES, AND trator may retain up to 2 percent of the Emission Reduction Act grants program for EDUCATION, AND RELATED AGENCIES funds appropriated herein for Superfund re- program oversight and support purposes and medial actions for program oversight and may transfer those funds to other accounts DEPARTMENT OF LABOR support purposes, and may transfer those as needed. EMPLOYMENT AND TRAINING ADMINISTRATION funds to other accounts as needed. DEPARTMENT OF AGRICULTURE TRAINING AND EMPLOYMENT SERVICES LEAKING UNDERGROUND STORAGE TANK TRUST FOREST SERVICE For an additional amount for ‘‘Training FUND PROGRAM CAPITAL IMPROVEMENT AND MAINTENANCE and Employment Services’’ for activities au- thorized by the Workforce Investment Act of For an additional amount for ‘‘Leaking For an additional amount for ‘‘Capital Im- Underground Storage Tank Trust Fund Pro- 1998 (‘‘WIA’’), $3,250,000,000, which shall be provement and Maintenance’’, $650,000,000, to available on the date of enactment of this gram’’, $200,000,0000, to remain available remain available until September 30, 2010, until September 30, 2010, for cleanup activi- Act, as follows: which shall include remediation of aban- (1) $500,000,000 for adult employment and ties: Provided, That none of these funds shall doned mine sites and support costs necessary be subject to cost share requirements. training activities, including supportive to carry out this work. services and needs-related payments de- STATE AND TRIBAL ASSISTANCE GRANTS WILDLAND FIRE MANAGEMENT scribed in section 134(e)(2) and (3) of the WIA: (INCLUDING TRANSFERS OF FUNDS) For an additional amount for ‘‘Wildland Provided, That a priority use of these funds For an additional amount for ‘‘State and Fire Management’’, $650,000,000, to remain shall be services to individuals described in Tribal Assistance Grants’’, $6,400,000,000, to available until September 30, 2010, for haz- 134(d)(4)(E) of the WIA; remain available until September 30, 2010, of ardous fuels reduction and hazard mitigation (2) $1,200,000,000 for grants to the States for which $4,000,000,000 shall be for making cap- activities in areas at high risk of cata- youth activities, including summer employ- italization grants for the Clean Water State strophic wildfire, of which $350,000,000 is ment for youth: Provided, That no portion of Revolving Funds under title VI of the Fed- available for work on State and private lands such funds shall be reserved to carry out sec- eral Water Pollution Control Act, as amend- using all the authorities available to the tion 127(b)(1)(A) of the WIA: Provided further, ed; of which $2,000,000,000 shall be for making Forest Service: Provided, That of the funds That for purposes of section 127(b)(1)(C)(iv) of capitalization grants for the Drinking Water provided for State and private land fuels re- the WIA, funds available for youth activities State Revolving Fund under section 1452 of duction activities, up to $50,000,000 may be shall be allotted as if the total amount avail- the Safe Drinking Water Act, as amended; of used to make grants for the purpose of cre- able for youth activities in the fiscal year

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does not exceed $1,000,000,000: Provided fur- DEPARTMENTAL MANAGEMENT lic Health Service Act in proportion to the ther, That, with respect to the youth activi- OFFICE OF JOB CORPS appropriations otherwise made to such Insti- ties provided with such funds, section tutes, Centers, and Common Fund for fiscal For an additional amount for ‘‘Office of 101(13)(A) of the WIA shall be applied by sub- year 2009: Provided further, That these funds Job Corps’’ for construction, alteration and stituting ‘‘age 24’’ for ‘‘age 21’’: Provided fur- shall be used to support additional scientific repairs of buildings and other facilities, ther, That the work readiness performance research and shall be merged with and be $160,000,000, which shall remain available indicator described in section available for the same purposes as the appro- through June 30, 2010: Provided, That the Sec- 136(b)(2)(A)(ii)(I) of the WIA shall be the only priation or fund to which transferred: Pro- retary of Labor may transfer up to 15 percent measure of performance used to assess the vided further, That this transfer authority is of such funds to meet the operational needs effectiveness of youth activities provided in addition to any other transfer authority of Job Corps Centers, which may include with such funds; available to the National Institutes of training for careers in the energy efficiency, (3) $1,000,000,000 for grants to the States for Health: Provided further, That none of these renewable energy, and environmental protec- dislocated worker employment and training funds may be transferred to ‘‘National Insti- tion industries: Provided further, That not activities; tutes of Health—Buildings and Facilities’’, later than 90 days after the date of enact- (4) $200,000,000 for national emergency the Center for Scientific Review, the Center ment of this Act, the Secretary shall provide grants; for Information Technology, the Clinical to the Committee on Appropriations of the (5) $250,000,000 under the dislocated worker Center, the Global Fund for HIV/AIDS, Tu- House of Representatives and the Senate an national reserve for a program of competi- berculosis and Malaria, or the Office of the operating plan describing the planned uses of tive grants for worker training in high Director (except for the transfer to the Com- funds available in this paragraph. growth and emerging industry sectors and mon Fund). OFFICE OF INSPECTOR GENERAL assistance under 132(b)(2)(A) of the WIA: Pro- BUILDINGS AND FACILITIES vided, That the Secretary of Labor shall give For an additional amount for the ‘‘Office of For an additional amount for ‘‘Buildings priority when awarding such grants to Inspector General’’, $3,000,000, which shall re- and Facilities’’, $500,000,000, which shall be projects that prepare workers for careers in main available through September 30, 2010, available through September 30, 2010, to fund energy efficiency and renewable energy as for salaries and expenses necessary for over- high-priority repair, construction and im- described in section 171(e)(1)(B) of the WIA sight and audit of programs, grants, and provement projects for National Institutes of and for careers in the health care sector; and projects funded in this Act and administered Health facilities on the Bethesda, Maryland (6) $100,000,000 for YouthBuild activities as by the Department of Labor. campus and other agency locations. described in section 173A of the WIA: Pro- DEPARTMENT OF HEALTH AND HUMAN AGENCY FOR HEALTHCARE RESEARCH AND vided, That for program years 2008 and 2009, SERVICES the YouthBuild program may serve an indi- QUALITY HEALTH RESOURCES AND SERVICES vidual who has dropped out of high school HEALTHCARE RESEARCH AND QUALITY ADMINISTRATION and re-enrolled in an alternative school, if (INCLUDING TRANSFER OF FUNDS) HEALTH RESOURCES AND SERVICES that re-enrollment is part of a sequential For an additional amount for ‘‘Healthcare service strategy: For an additional amount for ‘‘Health Re- Research and Quality’’ to carry out titles III Provided, That funds made available in this sources and Services’’, $1,088,000,000, which and IX of the Public Health Service Act, part paragraph shall remain available through shall remain available through September A of title XI of the Social Security Act, and June 30, 2010: Provided further, That a local 30, 2010, of which $88,000,000 shall be for nec- section 1013 of the Medicare Prescription essary expenses related to leasing and ren- board may award a contract to an institu- Drug, Improvement, and Modernization Act ovating a headquarters building for Public tion of higher education if the local board of 2003, $700,000,000 for comparative clinical Health Service agencies and other compo- determines that it would facilitate the train- effectiveness research, which shall remain nents of the Department of Health and ing of multiple individuals in high-demand available through September 30, 2010: Pro- Human Services, including renovation and occupations, if such contract does not limit vided, That of the amount appropriated in fit-out costs, and of which $1,000,000,000 shall customer choice. this paragraph, $400,000,000 shall be trans- be for grants for construction, renovation ferred to the Office of the Director of the Na- COMMUNITY SERVICE EMPLOYMENT FOR OLDER and equipment for health centers receiving tional Institutes of Health (‘‘Office of the Di- AMERICANS operating grants under section 330 of the rector’’) to conduct or support comparative Public Health Service Act, notwithstanding clinical effectiveness research under section For an additional amount for ‘‘Community the limitation in section 330(e)(3). 301 and title IV of the Public Health Service Service Employment for Older Americans’’ CENTERS FOR DISEASE CONTROL AND Act: Provided further, That funds transferred for carrying out title V of the Older Ameri- PREVENTION to the Office of the Director may be trans- cans Act of 1965, $120,000,000, which shall be DISEASE CONTROL, RESEARCH, AND TRAINING ferred to the Institutes and Centers of the available on the date of enactment of this National Institutes of Health and to the For an additional amount for ‘‘Disease Act and shall remain available through June Common Fund established under section Control, Research, and Training’’ for acquisi- 30, 2010: Provided, That funds shall be allot- 402A(c)(1) of the Public Health Service Act: tion of real property, equipment, construc- ted within 30 days of such enactment to cur- Provided further, That this transfer authority tion, and renovation of facilities, including rent grantees in proportion to their allot- is in addition to any other transfer authority necessary repairs and improvements to ment in program year 2008: Provided further, available to the National Institutes of leased laboratories, $412,000,000, which shall That funds made available under this head- Health: Provided further, That within the remain available through September 30, 2010: ing in this Act may, in accordance with sec- amount available in this paragraph for the Provided, That notwithstanding any other tion 517(c) of the Older Americans Act of Agency for Healthcare Research and Quality, provision of law, the Centers for Disease 1965, be recaptured and reobligated. not more than 1 percent shall be made avail- Control and Prevention may award a single able for additional full-time equivalents. STATE UNEMPLOYMENT INSURANCE AND contract or related contracts for develop- In addition, $400,000,000 shall be available EMPLOYMENT SERVICE OPERATIONS ment and construction of facilities that col- for comparative clinical effectiveness re- lectively include the full scope of the For an additional amount for ‘‘State Un- search to be allocated at the discretion of project: Provided further, That the solicita- employment Insurance and Employment the Secretary of Health and Human Services tion and contract shall contain the clause Service Operations’’ for grants to States in (‘‘Secretary’’) and shall remain available ‘‘availability of funds’’ found at 48 CFR accordance with section 6 of the Wagner- through September 30, 2010: Provided, That 52.232–18. Peyser Act, $400,000,000, which may be ex- the funding appropriated in this paragraph pended from the Employment Security Ad- NATIONAL INSTITUTES OF HEALTH shall be used to accelerate the development ministration account in the Unemployment NATIONAL CENTER FOR RESEARCH RESOURCES and dissemination of research assessing the Trust Fund: Provided, That such funds shall For an additional amount for ‘‘National comparative clinical effectiveness of health be available on the date of enactment of this Center for Research Resources’’, $300,000,000, care treatments and strategies, including Act and remain available to the States which shall be available through September through efforts that: (1) conduct, support, or through September 30, 2010: Provided further, 30, 2010, for shared instrumentation and synthesize research that compares the clin- That $250,000,000 of such funds shall be used other capital research equipment. ical outcomes, effectiveness, and appro- by States for reemployment services for un- priateness of items, services, and procedures OFFICE OF THE DIRECTOR employment insurance claimants (including that are used to prevent, diagnose, or treat the integrated Employment Service and Un- (INCLUDING TRANSFER OF FUNDS) diseases, disorders, and other health condi- employment Insurance information tech- For an additional amount for ‘‘Office of the tions and (2) encourage the development and nology required to identify and serve the Director’’, $2,700,000,000, which shall be avail- use of clinical registries, clinical data net- needs of such claimants): Provided further, able through September 30, 2010: Provided, works, and other forms of electronic health That the Secretary of Labor shall establish That $1,350,000,000 shall be transferred to the data that can be used to generate or obtain planning and reporting procedures necessary Institutes and Centers of the National Insti- outcomes data: Provided further, That the to provide oversight of funds used for reem- tutes of Health and to the Common Fund es- Secretary shall enter into a contract with ployment services. tablished under section 402A(c)(1) of the Pub- the Institute of Medicine, for which no more

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00040 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.037 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1143 than $1,500,000 shall be made available from through September 30, 2010, is hereby appro- dence or severity of preventable disabilities, funds provided in this paragraph, to produce priated for expansion of Early Head Start diseases and conditions and to invest in and submit a report to the Congress and the programs, as described in section 645A of health workforce training, $5,800,000,000, to Secretary by not later than June 30, 2009 such Act: Provided, That of the funds pro- remain available through September 30, 2011: that includes recommendations on the na- vided in this sentence, up to 10 percent shall Provided, That the amount made available in tional priorities for comparative clinical ef- be available for the provision of training and this paragraph may be transferred to an- fectiveness research to be conducted or sup- technical assistance to such programs con- other appropriation account of the Depart- ported with the funds provided in this para- sistent with section 645A(g)(2) of such Act, ment of Health and Human Services graph and that considers input from stake- and up to 3 percent shall be available for (‘‘HHS’’), as determined by the Secretary of holders: Provided further, That the Secretary monitoring the operation of such programs Health and Human Services to be appro- shall consider any recommendations of the consistent with section 641A of such Act. priate and upon notification of the Commit- Federal Coordinating Council for Compara- For an additional amount for ‘‘Children tees on Appropriations of the House of Rep- tive Clinical Effectiveness Research estab- and Families Services Programs’’ for car- resentatives and the Senate, to be used for lished by section 802 of this Act and any rec- rying out activities under sections 674 the purposes specified in this paragraph, and ommendations included in the Institute of through 679 of the Community Services the provisos of this paragraph shall apply to Medicine report pursuant to the preceding Block Grant Act, $200,000,000, which shall re- any funds so transferred: Provided further, proviso in designating activities to receive main available through September 30, 2010: That of the amount provided in this para- funds provided in this paragraph and may Provided, That of the funds provided under graph, not less than $1,000,000,000 shall be make grants and contracts with appropriate this paragraph, no part shall be subject to transferred to the Centers for Disease Con- entities, which may include agencies within paragraph (3) of section 674(b) of such Act: trol and Prevention (‘‘CDC’’) as an additional the Department of Health and Human Serv- Provided further, That not less than 5 percent amount for screening activities related to ices and other governmental agencies, as of the funds allotted to a State from the ap- preventable disabilities and chronic diseases well as private sector entities, that have propriation under this paragraph shall be and conditions, including counseling to pre- demonstrated experience and capacity to used under section 675C(b)(1) for benefits en- vent and mitigate the precursors of those achieve the goals of comparative clinical ef- rollment coordination activities relating to disorders: Provided further, That of the fectiveness research: Provided further, That the identification and enrollment of eligible amount provided in this paragraph, not less the Secretary shall publish information on individuals and families in Federal, State than $750,000,000 shall be transferred to the grants and contracts awarded with the funds and local benefit programs. CDC as an additional amount to carry out the immunization program authorized by provided under this heading within a reason- ADMINISTRATION ON AGING section 317(a), (j), and (k)(1) of the Public able time of the obligation of funds for such AGING SERVICES PROGRAMS grants and contracts and shall disseminate Health Service Act (‘‘PHS Act’’): Provided For an additional amount for ‘‘Aging Serv- research findings from such grants and con- further, That of the amount provided in this ices Programs,’’ $100,000,000, of which tracts to clinicians, patients, and the general paragraph, not less than $600,000,000 shall be $67,000,000 shall be for Congregate Nutrition public, as appropriate: Provided further, That, transferred to the Health Resources and Services and $33,000,000 shall be for Home-De- to the extent feasible, the Secretary shall Services Administration as an additional livered Nutrition Services: Provided, That ensure that the recipients of the funds pro- amount to address health professions work- these funds shall remain available through force shortages through scholarships, loan vided by this paragraph offer an opportunity September 30, 2010. repayment, grants to training programs for for public comment on the research: Provided equipment and activities to foster cross- further, That the Secretary shall provide the OFFICE OF THE SECRETARY state licensure agreements, authorized under Committees on Appropriations of the House OFFICE OF THE NATIONAL COORDINATOR FOR sections 330 through 338, 737, 738, and 846 of of Representatives and the Senate, the Com- HEALTH INFORMATION TECHNOLOGY the PHS Act, of which $200,000,000 shall be mittee on Energy and Commerce and the (INCLUDING TRANSFER OF FUNDS) available until expended for extending serv- Committee on Ways and Means of the House For an additional amount for ‘‘Office of the ice contracts and the recapture and realloca- of Representatives, and the Committee on National Coordinator for Health Information tion of funds in the event that a participant Health, Education, Labor, and Pensions and Technology’’, $5,000,000,000, to carry out title fails to fulfill their term of service: Provided the Committee on Finance of the Senate XIII of this Act which shall be available further, That of the amount provided in this with an annual report on the research con- until expended: Provided, That of this paragraph, $400,000,000 shall be transferred to ducted or supported through the funds pro- amount, the Secretary of Health and Human the CDC as an additional amount for the vided under this heading. Services shall transfer $20,000,000 to the Di- Healthy Communities program, which shall ADMINISTRATION FOR CHILDREN AND FAMILIES rector of the National Institute of Standards be used for multi-year awards: Provided fur- PAYMENTS TO STATES FOR THE CHILD CARE AND and Technology in the Department of Com- ther, That of the amount provided in this DEVELOPMENT BLOCK GRANT merce for continued work on advancing paragraph, not less than $60,000,000 shall be For an additional amount for ‘‘Payments health care information enterprise integra- made available for additional research, data to States for the Child Care and Develop- tion through activities such as technical collection and surveys relating to prevention ment Block Grant’’ for carrying out the standards analysis and establishment of con- science and the current state of health, in- Child Care and Development Block Grant formance testing infrastructure so long as cluding equipment: Provided further, That of Act of 1990, $2,000,000,000, which shall remain such activities are coordinated with the Of- the amount provided in this paragraph, available through September 30, 2010: Pro- fice of the National Coordinator for Health $40,000,000 shall be transferred to the CDC for vided, That funds provided under this head- Information Technology: Provided further, information technology improvements to ing shall be used to supplement, not supplant That funds available under this heading shall vital statistics record systems, including State general revenue funds for child care as- become available for obligation only upon grants to State health departments for sistance for low-income families: Provided submission of an annual operating plan by equipment: Provided further, That of the further, That, in addition to the amounts re- the Secretary to the Committees on Appro- amount provided in this paragraph, quired to be reserved by the States under priations of the House of Representatives $15,000,000 shall be made available for grants section 658G of such Act, $255,186,000 shall be and the Senate: Provided further, That the to States for equipment and maintenance re- reserved by the States for activities author- Secretary shall provide to the Committees lated to newborn screening: Provided further, ized under section 658G, of which $93,587,000 on Appropriations of the House of Represent- That not less than 1 percent of the amount shall be for activities that improve the qual- atives and the Senate a report on the actual provided in this paragraph shall be available ity of infant and toddler care. obligations, expenditures, and unobligated for evaluation of the activities supported by balances for each major set of activities not the amounts provided in this paragraph: Pro- SOCIAL SERVICES BLOCK GRANT later than November 1, 2009 and every 6 vided further, That up to 1 percent of For an additional amount for ‘‘Social Serv- months thereafter as long as funding under amounts made available in this paragraph ices Block Grant,’’ $400,000,000: Provided, this heading is available for obligation or ex- may be used for administrative expenses in That notwithstanding section 2003 of the So- penditure. the office or division of HHS administering cial Security Act, funds shall be allocated to the funds: Provided further, That the trans- States on the basis of unemployment: Pro- OFFICE OF THE INSPECTOR GENERAL For an additional amount for the Office of fers required by this paragraph shall be com- vided further, That these funds shall be obli- pleted within 30 days of enactment of this gated to States within 60 calendar days from the Inspector General, $4,000,000 which shall remain available until September 30, 2011. Act: Provided further, That the Secretary the date they become available for obliga- shall submit reports to the Committees on tion. PUBLIC HEALTH AND SOCIAL SERVICES Appropriations of the House of Representa- CHILDREN AND FAMILIES SERVICES PROGRAMS EMERGENCY FUND tives and the Senate detailing the following For an additional amount for ‘‘Children (INCLUDING TRANSFER OF FUNDS) information on the amounts appropriated in and Families Services Programs’’ for car- For an additional amount for the ‘‘Public this paragraph: (1) an operating plan detail- rying out activities under the Head Start Health and Social Services Emergency ing activities to be supported and timelines Act, $1,000,000,000, which shall remain avail- Fund’’ to carry out a program of grants, con- for expenditure, to be submitted no later able through September 30, 2010. In addition, tracts, and cooperative agreements to fund than 120 days after the enactment of this $1,100,000,000, which shall remain available projects and activities to reduce the inci- Act; (2) 15 day prior notification of any funds

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00041 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.037 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1144 CONGRESSIONAL RECORD — SENATE January 30, 2009 to be obligated prior to the submission of the ney-Vento funds to local educational agen- part A of title II of the Higher Education Act operating plan; (3) an obligation and expend- cies on a competitive basis or according to a of 1965, $100,000,000: Provided, That these iture report to be submitted quarterly until formula based on the number of homeless funds shall remain available through Sep- all funds are fully expended; (4) a briefing 15 students identified by the local educational tember 30, 2010. days prior to any new grant solicitation; (5) agencies in the State: Provided further, That HIGHER EDUCATION FACILITIES an evaluation plan that details the manner the Secretary shall distribute the McKinney- For carrying out activities authorized in which the Secretary intends to evaluate Vento funds to the States not later than 60 under section 803 of this Act, $3,500,000,000: the outcomes of activities supported, to be days after the date of the enactment of this Provided, That these funds shall remain submitted 120 days after enactment of this Act: Provided further, That each State shall available through September 30, 2010. Act; (6) an outcomes report on all activities subgrant the McKinney-Vento funds to local supported, to be submitted 1 year after en- educational agencies not later than 120 days DEPARTMENTAL MANAGEMENT actment and every 6 months thereafter until after receiving its grant from the Secretary. OFFICE OF THE INSPECTOR GENERAL all funds have been expended; and (7) a report SPECIAL EDUCATION For an additional amount for the ‘‘Office of on best practices to be submitted 18 months For an additional amount for ‘‘Special the Inspector General’’, $4,000,000, which after enactment and every 6 months there- Education’’ for carrying out parts B and C of shall remain available through September after until all funds have been expended. the Individuals with Disabilities Education 30, 2012, for salaries and expenses necessary For an additional amount for the ‘‘Public Act (‘‘IDEA’’), $13,500,000,000, which shall re- for oversight and audit of programs, grants, Health and Social Services Emergency main available through September 30, 2010: and projects funded in this Act and adminis- Fund’’ to prepare for and respond to an influ- Provided, That if every State, as defined by tered by the Department of Education. enza pandemic, $870,000,000, for activities in- section 602(31) of the IDEA, reaches its max- RELATED AGENCIES cluding the development and purchase of imum allocation under section vaccine, antivirals, necessary medical sup- CORPORATION FOR NATIONAL AND 611(d)(3)(B)(iii) of the IDEA, and there are re- COMMUNITY SERVICE plies, diagnostics, and other surveillance maining funds, such funds shall be propor- OPERATING EXPENSES tools which shall be available until ex- tionally allocated to each State subject to pended: Provided, That products purchased the maximum amounts contained in section (INCLUDING TRANSFER OF FUNDS) with these funds may, at the discretion of 611(a)(2) of the IDEA: Provided further, That For an additional amount for ‘‘Operating the Secretary, be deposited in the Strategic by July 1, 2009, the Secretary of Education Expenses’’ to carry out the Domestic Volun- National Stockpile: Provided further, That shall reserve the amount needed for grants teer Service Act of 1973 (‘‘1973 Act’’) and the notwithstanding section 496(b) of the Public under section 643(e) of the IDEA, with any National and Community Service Act of 1990 Health Service Act, funds may be used for remaining funds to be allocated in accord- (‘‘1990 Act’’), $160,000,000, to remain available the construction or renovation of privately ance with section 643(c) of the IDEA: Pro- through September 30, 2010: Provided, That owned facilities for the production of pan- vided further, That the amount for section funds made available in this paragraph may demic influenza vaccines and other biologics, 611(b)(2) of the IDEA shall be equal to the be used to provide adjustments to awards where the Secretary finds such a contract lesser of the amount available for that activ- under subtitle C of title I of the 1990 Act necessary to secure sufficient supplies of ity during fiscal year 2008, increased by the made prior to September 30, 2010 for which such vaccines or biologics: Provided further, amount of inflation as specified in section the Chief Executive Officer of the Corpora- That funds appropriated herein may be 619(d)(2)(B), or the percentage increase in the tion for National and Community Service transferred to other appropriation accounts funds appropriated under section 611(i): Pro- (‘‘CEO’’) determines that a waiver of the of the Department of Health and Human vided further, That each local educational Federal share limitation is warranted under Services, as determined by the Secretary to agency receiving funds available under this section 2521.70 of title 45 of the Code of Fed- be appropriate, to be used for the purposes paragraph for part B shall use not less than eral Regulations: Provided further, That of specified in this sentence. 15 percent for special education and related the amount made available in this para- DEPARTMENT OF EDUCATION services to children described in section graph, not less than $6,000,000 shall be trans- EDUCATION FOR THE DISADVANTAGED 619(a) of the IDEA. ferred to ‘‘Salaries and Expenses’’ for nec- essary expenses relating to information tech- For an additional amount for carrying out REHABILITATION SERVICES AND DISABILITY nology upgrades: Provided further, That of title I of the Elementary and Secondary Edu- RESEARCH the amount provided in this paragraph, cation Act of 1965, $13,000,000,000, which shall For an additional amount for ‘‘Rehabilita- $10,000,000 shall be available for additional be available through September 30, 2010: Pro- tion Services and Disability Research’’ for members in the Civilian Community Corps vided, That $5,500,000,000 shall be for targeted providing grants to States to carry out the authorized under subtitle E of title I of the grants under section 1125, $5,500,000,000 shall Vocational Rehabilitation Services program 1990 Act: Provided further, That of the be for education finance incentive grants under part B of title I and parts B and C of amount provided in this paragraph, $1,000,000 under section 1125A, and $2,000,000,000 shall chapter 1 and chapter 2 of title VII of the Re- shall be made available for a one-time sup- be for school improvement grants under sec- habilitation Act of 1973, $610,000,000, which plement grant to State commissions on na- tion 1003(g): Provided further, That each local shall remain available through September tional and community service under section educational agency receiving funds available 30, 2010: Provided, That $500,000,000 shall be 126(a) of the 1990 Act without regard to the under this paragraph for sections 1125 and available for part B of title I of the Rehabili- limitation on Federal share under section 1125A shall use not less than 15 percent of tation Act: Provided further, That funds pro- 126(a)(2) of the 1990 Act: Provided further, such funds for activities serving children vided herein shall not be considered in deter- That of the amount made available in this who are eligible pursuant to section mining the amount required to be appro- paragraph, not less than $13,000,000 shall be 1115(b)(1)(A)(ii) and programs in section priated under section 100(b)(1) of the Reha- for research activities authorized under sub- 1112(b)(1)(K): Provided further, That each bilitation Act of 1973 in any fiscal year: Pro- title H of title I of the 1990 Act: Provided fur- local educational agency receiving funds vided further, That, notwithstanding section ther, That of the amount made available in available under this paragraph shall be re- 7(14)(A), the Federal share of the costs of vo- this paragraph, not less than $65,000,000 shall quired to file with the State educational cational rehabilitation services provided be for programs under title I, part A of the agency, no later than December 1, 2009, a with the funds provided herein shall be 100 1973 Act: Provided further, That funds pro- school-by-school listing of per-pupil edu- percent. vided in the previous proviso shall not be cational expenditures from State and local STUDENT FINANCIAL ASSISTANCE made available in connection with cost-share sources during the 2008–2009 academic year. For an additional amount for ‘‘Student Fi- agreements authorized under section SCHOOL IMPROVEMENT PROGRAMS nancial Assistance’’ to carry out subpart 1 of 192A(g)(10) of the 1990 Act: Provided further, For an additional amount for ‘‘School Im- part A of title IV of the Higher Education That of the funds available under this head- provement Programs,’’ $17,070,000,000, which Act of 1965, $13,869,000,000: Provided, That ing, up to 20 percent of funds allocated to shall be available through September 30, such funds shall be used to increase the max- grants authorized under section 124(b) of 2010, for carrying out activities authorized imum Pell Grant by $281 for award year 2009– title I, subtitle C of the 1990 Act may be used by part D of title II of the Elementary and 2010, to increase the maximum Pell Grant by to administer, reimburse, or support any na- Secondary Education Act of 1965, subtitle B $400 for the award year 2010–2011, and to re- tional service program under section of title VII of the McKinney-Vento Homeless duce or eliminate the Pell Grant shortfall: 129(d)(2) of the 1990 Act: Provided further, Assistance Act (‘‘McKinney-Vento’’), and Provided further, That these funds shall re- That, except as provided herein and in addi- section 804 of this Act: Provided, That the main available through September 30, 2011. tion to requirements identified herein, funds Secretary shall allot $70,000,000 for grants For an additional amount for ‘‘Student Fi- provided in this paragraph shall be subject to under McKinney-Vento to each State in pro- nancial Assistance’’ to carry out part E of the terms and conditions under which funds portion to the number of homeless students title IV of the Higher Education Act of 1965, were appropriated in fiscal year 2008: Pro- identified by the State during the 2007–2008 $61,000,000: Provided, That these funds shall vided further, That the CEO shall provide the school year relative to the number of such remain available through September 30, 2010. Committees on Appropriations of the House children identified nationally during that HIGHER EDUCATION of Representatives and the Senate a fiscal school year: Provided further, That State edu- For an additional amount for ‘‘Higher Edu- year 2009 operating plan for the funds appro- cational agencies shall subgrant the McKin- cation’’ for carrying out activities under priated in this paragraph prior to making

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00042 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.037 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1145 any Federal obligations of such funds in fis- GENERAL PROVISIONS—THIS TITLE ritories to achieve comparability with the cal year 2009, but not later than 90 days after SEC. 801. REPORT ON THE IMPACT OF PAST data collected in the United States. The De- the date of enactment of this Act, and a fis- AND FUTURE MINIMUM WAGE INCREASES. (a) IN partment of Labor, the Bureau of Economic cal year 2010 operating plan for such funds GENERAL.—Section 8104 of the U.S. Troop Analysis, and the Bureau of the Census, to- prior to making any Federal obligations of Readiness, Veterans’ Care, Katrina Recov- gether with the Department of the Interior, such funds in fiscal year 2010, but not later ery, and Iraq Accountability Appropriations shall coordinate their efforts to achieve such than November 1, 2009, that detail the alloca- Act, 2007 (Public Law 110–28; 121 Stat. 189) is improvements.’’. tion of resources and the increased number amended to read as follows: (b) EFFECTIVE DATE.—The amendment of members supported by the AmeriCorps ‘‘SEC. 8104. REPORT ON THE IMPACT OF PAST made by this section shall take effect on the programs: Provided further, That the CEO AND FUTURE MINIMUM WAGE IN- date of enactment of this Act. shall provide to the Committees on Appro- CREASES. SEC. 802. FEDERAL COORDINATING COUNCIL priations of the House of Representatives ‘‘(a) STUDY.—Beginning on the date that is FOR COMPARATIVE CLINICAL EFFECTIVENESS and the Senate a report on the actual obliga- 60 days after the date of enactment of this RESEARCH. (a) ESTABLISHMENT.—There is tions, expenditures, and unobligated bal- Act, and every year thereafter until the min- hereby established a Federal Coordinating ances for each activity funded under this imum wage in the respective territory is Council for Comparative Clinical Effective- heading not later than November 1, 2009, and $7.25 per hour, the Government Account- ness Research (in this section referred to as every 6 months thereafter as long as funding ability Office shall conduct a study to— the ‘‘Council’’). provided under this heading is available for ‘‘(1) assess the impact of the minimum (b) PURPOSE; DUTIES.—The Council shall— obligation or expenditure. wage increases that occurred in American (1) assist the offices and agencies of the NATIONAL SERVICE TRUST Samoa and the Commonwealth of the North- Federal Government, including the Depart- ern Mariana Islands in 2007 and 2008, as re- (INCLUDING TRANSFER OF FUNDS) ments of Health and Human Services, Vet- quired under Public Law 110–28, on the rates erans Affairs, and Defense, and other Federal For an additional amount for ‘‘National of employment and the living standards of departments or agencies, to coordinate the Service Trust’’ established under subtitle D workers, with full consideration of the other conduct or support of comparative clinical of title I of the National and Community factors that impact rates of employment and effectiveness and related health services re- Service Act of 1990 (‘‘1990 Act’’), $40,000,000, the living standards of workers such as infla- search; and which shall remain available until expended: tion in the cost of food, energy, and other (2) advise the President and Congress on— Provided, That the Corporation for National commodities; and (A) strategies with respect to the infra- and Community Service may transfer addi- ‘‘(2) estimate the impact of any further structure needs of comparative clinical effec- tional funds from the amount provided with- wage increases on rates of employment and tiveness research within the Federal Govern- in ‘‘Operating Expenses’’ for grants made the living standards of workers in American ment; under subtitle C of title I of the 1990 Act to Samoa and the Commonwealth of the North- (B) appropriate organizational expendi- this appropriation upon determination that ern Mariana Islands, with full consideration tures for comparative clinical effectiveness such transfer is necessary to support the ac- of the other factors that may impact the research by relevant Federal departments tivities of national service participants and rates of employment and the living stand- and agencies; and after notice is transmitted to the Commit- ards of workers, including assessing how the (C) opportunities to assure optimum co- tees on Appropriations of the House of Rep- profitability of major private sector firms ordination of comparative clinical effective- resentatives and the Senate: Provided further, may be impacted by wage increases in com- ness and related health services research That the amount appropriated for or trans- parison to other factors such as energy costs conducted or supported by relevant Federal ferred to the National Service Trust may be and the value of tax benefits. departments and agencies, with the goal of invested under section 145(b) of the 1990 Act ‘‘(b) REPORT.—No earlier than March 15, reducing duplicative efforts and encouraging without regard to the requirement to appor- 2009, and not later than April 15, 2009, the coordinated and complementary use of re- tion funds under 31 U.S.C. 1513(b). Government Accountability Office shall sources. SOCIAL SECURITY ADMINISTRATION transmit its first report to Congress con- (c) MEMBERSHIP.— LIMITATION ON ADMINISTRATIVE EXPENSES cerning the findings of the study required (1) NUMBER AND APPOINTMENT.—The Coun- under subsection (a). The Government Ac- (INCLUDING TRANSFER OF FUNDS) cil shall be composed of not more than 15 countability Office shall transmit any subse- members, all of whom are senior Federal of- For an additional amount for ‘‘Limitation quent reports to Congress concerning the ficers or employees with responsibility for on Administrative Expenses’’, $890,000,000 findings of a study required by subsection (a) health-related programs, appointed by the shall be available as follows: between March 15 and April 15 of each year. President, acting through the Secretary of (1) $750,000,000 shall remain available until ‘‘(c) ECONOMIC INFORMATION.—To provide Health and Human Services (in this section expended for necessary expenses of the re- sufficient economic data for the conduct of referred to as the ‘‘Secretary’’). Members placement of the National Computer Center the study under subsection (a)— shall first be appointed to the Council not and the information technology costs associ- ‘‘(1) the Department of Labor shall include later than 30 days after the date of the enact- ated with such Center: Provided, That the and separately report on American Samoa ment of this Act. Commissioner of Social Security shall notify and the Commonwealth of the Northern Mar- (2) MEMBERS.— the Committees on Appropriations of the iana Islands in its household surveys and es- (A) IN GENERAL.—The members of the House of Representatives and the Senate not tablishment surveys; Council shall include one senior officer or later than 10 days prior to each public notice ‘‘(2) the Bureau of Economic Analysis of employee from each of the following agen- soliciting bids related to site selection and the Department of Commerce shall include cies: construction: Provided further, That unobli- and separately report on American Samoa (i) The Agency for Healthcare Research gated balances of funds not needed for this and the Commonwealth of the Northern Mar- and Quality. purpose may be used as described in subpara- iana Islands in its gross domestic product (ii) The Centers for Medicare and Medicaid graph (2); and data; and Services. (2) $140,000,000 shall be available through ‘‘(3) the Bureau of the Census of the De- (iii) The National Institutes of Health. September 30, 2010 for information tech- partment of Commerce shall include and sep- (iv) The Office of the National Coordinator nology acquisitions and research, which may arately report on American Samoa and the for Health Information Technology. include research and activities to facilitate Commonwealth of the Northern Mariana Is- (v) The Food and Drug Administration. the adoption of electronic medical records in lands in its population estimates and demo- (vi) The Veterans Health Administration disability claims and the transfer of funds to graphic profiles from the American Commu- within the Department of Veterans Affairs. ‘‘Supplemental Security Income’’ to carry nity Survey, (vii) The office within the Department of out activities under section 1110 of the Social with the same regularity and to the same ex- Defense responsible for management of the Security Act: Provided further, That not later tent as the Department or each Bureau col- Department of Defense Military Health Care than 10 days prior to the obligation of such lects and reports such data for the 50 States. System. funds, the Commissioner shall provide to the In the event that the inclusion of American (B) QUALIFICATIONS.—At least half of the Committees on Appropriations of the House Samoa and the Commonwealth of the North- members of the Council shall be physicians of Representatives and the Senate an oper- ern Mariana Islands in such surveys and data or other experts with clinical expertise. ating plan describing the planned uses of compilations requires time to structure and (3) CHAIRMAN; VICE CHAIRMAN.—The Sec- such funds. implement, the Department of Labor, the retary shall serve as Chairman of the Coun- OFFICE OF INSPECTOR GENERAL Bureau of Economic Analysis, and the Bu- cil and shall designate a member to serve as For an additional amount for the ‘‘Office of reau of the Census (as the case may be) shall Vice Chairman. Inspector General’’, $3,000,000, which shall re- in the interim annually report the best (d) REPORTS.— main available through September 30, 2012, available data that can feasibly be secured (1) INITIAL REPORT.—Not later than June for salaries and expenses necessary for over- with respect to such territories. Such in- 30, 2009, the Council shall submit to the sight and audit of programs, projects, and terim reports shall describe the steps the De- President and the Congress a report con- activities funded in this Act and adminis- partment or the respective Bureau will take taining information describing Federal ac- tered by the Social Security Administration. to improve future data collection in the ter- tivities on comparative clinical effectiveness

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00043 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.038 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1146 CONGRESSIONAL RECORD — SENATE January 30, 2009 research and recommendations for addi- ity modernization, renovation, repair, and (including wood pellet), or geothermal sys- tional investments in such research con- equipment. tems, or components of such systems. ducted or supported from funds made avail- (C) COMMUNITY COLLEGES.—Notwith- (J) Other modernization, renovation, or re- able for allotment by the Secretary for com- standing, subparagraph (B), the percentage pair projects or purchase of equipment that parative clinical effectiveness research in of funds allocated to community colleges in are primarily for instruction or research. this Act. each State shall be no less than the percent- (2) PROHIBITED USES OF FUNDS.—No funds (2) ANNUAL REPORT.—The Council shall age of full-time equivalent students attend- awarded under this section may be used for— submit to the President and Congress an an- ing community colleges relative to the total (A) the maintenance of systems, equip- nual report regarding its activities and rec- number of full-time equivalent under- ment, or facilities, including maintenance ommendations concerning the infrastructure graduate students attending public institu- associated with any permissible uses of funds needs, appropriate organizational expendi- tions of higher education in the State. described in paragraph (1); tures and opportunities for better coordina- (D) PRIORITY CONSIDERATIONS.—In awarding (B) modernization, renovation, or repair of tion of comparative clinical effectiveness re- subgrants under this section, each State stadiums or other facilities primarily used search by relevant Federal departments and higher education agency shall give priority for athletic contests or exhibitions or other agencies. consideration to institutions of higher edu- events for which admission is charged to the (e) STAFFING; SUPPORT.—From funds made cation with any of the following characteris- general public; available for allotment by the Secretary for tics: (C) modernization, renovation, or repair of comparative clinical effectiveness research (i) The institution is eligible for Federal facilities— in this Act, the Secretary shall make avail- assistance under title III or title V of the (i) used for sectarian instruction, religious able not more than 1 percent to the Council Higher Education Act of 1965. worship, or a school or department of divin- for staff and administrative support. (ii) The institution was impacted by a ity; or SEC. 803. HIGHER EDUCATION MODERNIZA- major disaster or emergency declared by the (ii) in which a substantial portion of the TION, RENOVATION, AND REPAIR. (a) PUR- President (as defined in section 102(2) of the functions of the facilities are subsumed in a POSE.—Grants awarded under this section Robert T. Stafford Disaster Relief and Emer- religious mission; or shall be for the purpose of modernizing, ren- gency Assistance Act (42 U.S.C. 5122(2))), in- (D) construction of new facilities. ovating, and repairing institution of higher cluding an institution affected by a Gulf hur- (e) APPLICATION OF GEPA.—The grant pro- education facilities that are primarily used ricane disaster, as such term is defined in gram authorized in this section is an applica- for instruction and research. section 824(g)(1) of the Higher Education Act Funds may also be used for leasing, pur- ble program (as that term is defined in sec- of 1965 (20 U.S.C. 11611–3(g)(1)). chasing or upgrading equipment, designed to tion 400 of the General Education Provisions (iii) The institution demonstrates that the strengthen and support academic and tech- Act (20 U.S.C. 1221)) subject to section 439 of proposed project or projects to be carried out nical skill achievement. such Act (20 U.S.C. 1232b). The Secretary with a subgrant under this section will in- (b) GRANTS TO STATE HIGHER EDUCATION shall, notwithstanding section 437 of such AGENCIES.— crease the energy efficiency of the institu- Act (20 U.S.C. 1232) and section 553 of title 5, (1) FORMULA.—From the amounts appro- tion’s facilities and comply with the LEED United States Code, establish such program priated to carry out this section, the Sec- Green Building Rating System. rules as may be necessary to implement such retary of Education shall allocate funds to (2) ADMINISTRATIVE AND OVERSIGHT EX- grant program by notice in the Federal Reg- State higher education agencies based on the PENSES.—Of the allocation amount received ister. number of students attending institutions of under subsection (b)(1), a State higher edu- (f) REPORTING.— higher education, with the State higher edu- cation agency may reserve not more than 5 (1) REPORTS BY INSTITUTIONS.—Not later cation agency in each State receiving an percent of such amount, or $500,000, which- than September 30, 2011, each institution of amount that is in proportion to the number ever is less, for administrative and oversight higher education receiving a subgrant under of full-time equivalent undergraduate stu- expenses related to carrying out this section. this section shall submit to the State higher dents attending institutions of higher edu- (d) USE OF SUBGRANTS BY INSTITUTIONS OF education agency awarding such subgrant a cation in such State for the most recent fis- HIGHER EDUCATION.— report describing the projects for which such cal year for which there are data available, (1) PERMISSIBLE USES OF FUNDS.—An insti- subgrant was received, including— relative to the total number of full-time tution of higher education receiving a (A) a description of each project carried equivalent undergraduate students attending subgrant under this section shall use such out, or planned to be carried out, with such institutions of higher education in all States subgrant to modernize, renovate, or repair subgrant, including the types of moderniza- for such fiscal year. facilities of the institution that are pri- tion, renovation, and repair to be completed (2) APPLICATION.—To be eligible to receive marily used for instruction, research, or stu- by each such project; an allocation from the Secretary under para- dent housing, which may include any of the (B) the total amount of funds received by graph (1), a State higher education agency following: the institution under this section and the shall submit an application to the Secretary (A) Repair, replacement, or installation of amount of such funds expended, as of the at such time and in such manner as the Sec- roofs, electrical wiring, plumbing systems, date of the report, on the such projects; retary may reasonably require. sewage systems, or lighting systems. (C) the actual or planned cost of each such (3) REALLOCATION.—Amounts allocated to a (B) Repair, replacement, or installation of project and any demonstrable or expected State higher education agency under this heating, ventilation, or air conditioning sys- academic, energy, or environmental benefits section that are not obligated by such agen- tems (including insulation). resulting from such project; and cy within 12 months of the date the agency (C) Compliance with fire and safety codes, (D) the total number of contracts, and receives such amounts shall be returned to including— amount of funding for such contracts, award- the Secretary, and the Secretary shall re- (i) professional installation of fire or life ed by the institution to carry out such allocate such amounts to State higher edu- safety alarms; and projects, as of the date of such report, in- cation agencies in other States on the same (ii) modernizations, renovations, and re- cluding the number of contracts, and amount basis as the original allocations under para- pairs that ensure that the institution’s fa- of funding for such contracts, awarded to graph (1). cilities are prepared for emergencies, such as local, small, minority-owned, women-owned, (4) ADMINISTRATION AND OVERSIGHT EX- improving building infrastructure to accom- and veteran-owned businesses, as such terms PENSES.—From the amounts appropriated to modate security measures. are defined by the Small Business Act. carry out this section, not more than (D) Retrofitting necessary to increase the (2) REPORTS BY STATES.—Not later than De- $3,000,000 shall be available to the Secretary energy efficiency of the institution’s facili- cember 31, 2011, each State higher education for administrative and oversight expenses re- ties. agency receiving a grant under this section lated to carrying out this section. (E) Renovations to the institution’s facili- shall submit to the Secretary a report con- (c) USE OF GRANTS BY STATE HIGHER EDU- ties necessary to comply with accessibility taining a compilation of all of the reports CATION AGENCIES.— requirements in the Americans with Disabil- under paragraph (1) submitted to the agency (1) SUBGRANTS TO INSTITUTIONS OF HIGHER ities Act of 1990 (42 U.S.C. 12101 et seq.) and by institutions of higher education. EDUCATION.— section 504 of the Rehabilitation Act of 1973 (3) REPORTS BY THE SECRETARY.—Not later (A) IN GENERAL.—Except as provided in (29 U.S.C. 794). than March 31, 2012, the Secretary shall sub- paragraph (2), each State higher education (F) Abatement or removal of asbestos from mit to the Committee on Education and agency receiving an allocation under sub- the institution’s facilities. Labor in the House of Representatives and section (b)(1) shall use the amount allocated (G) Modernization, renovation, and repair the Committee on Health, Education, Labor, to award subgrants to institutions of higher relating to improving science and engineer- and Pensions in the Senate and Committees education within the State to carry out ing laboratories, libraries, and instructional on Appropriations of the House of Represent- projects in accordance with subsection (d)(1). facilities. atives and the Senate a report on grants and (B) SUBGRANT AWARD ALLOCATION.—A State (H) Upgrading or installation of edu- subgrants made under this section, including higher education agency shall award sub- cational technology infrastructure. the information described in paragraph (1). grants to institutions of higher education (I) Installation or upgrading of renewable (g) DEFINITIONS.—In this section: under this section based on the dem- energy generation and heating systems, in- (1) INSTITUTION OF HIGHER EDUCATION.—The onstrated need of each institution for facil- cluding solar, photovoltaic, wind, biomass term ‘‘institution of higher education’’ has

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00044 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.038 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1147 the meaning given such term in section 101 (aa) shall award emergency grants in ac- locations described in paragraphs (1) and (2) of the Higher Education Act of 1965. cordance with section 8007(b) of the Elemen- not later than 60 days after the date of en- (2) LEED GREEN BUILDING RATING SYSTEM.— tary and Secondary Education Act of 1965 (20 actment of this Act. The term ‘‘LEED Green Building Rating Sys- U.S.C. 7703(b)) to eligible local educational (b) WITHIN-STATE ALLOTMENTS.— tem’’ means the United States Green Build- agencies to enable the agencies to carry out (1) ADMINISTRATIVE COSTS.— ing Council Leadership in Energy and Envi- emergency repairs of school facilities; and (A) STATE EDUCATIONAL AGENCY ADMINIS- ronmental Design green building rating (bb) may award modernization grants in TRATION.—Except as provided in subpara- standard referred to as the LEED Green accordance with section 8007(b) of the Ele- graph (C), each State educational agency Building Rating System. mentary and Secondary Education Act of may reserve not more than 1 percent of its (3) SECRETARY.—The term ‘‘Secretary’’ 1965 (20 U.S.C. 7703(b)) to eligible local edu- allocation under subsection (a)(2) or means the Secretary of Education. cational agencies to enable the agencies to $2,000,000, whichever is less, for the purpose (4) STATE.—The term ‘‘State’’ has the carry out the modernization of school facili- of administering the distribution of grants meaning given such term in section 103 of ties. under this subsection. (II) PROVISIONS NOT TO APPLY.—Paragraphs the Higher Education Act of 1965 (20 U.S.C. (B) REQUIRED USES.—Each State edu- 1003). (2), (3), (4), (5)(A)(i), and (5)(A)(vi) of section cational agency shall use a portion of the re- 8007(b) of the Elementary and Secondary (5) STATE HIGHER EDUCATION AGENCY.—The served funds under subparagraph (A) to es- Education Act of 1965 (20 U.S.C. 7703(b)(2), (3), term ‘‘State higher education agency’’ has tablish or support a State-level database of (4), (5)(A)(i), and (5)(A)(vi)) shall not apply to the meaning given such term in section 103 public school facility inventory, condition, grants made under this clause. of the Higher Education Act of 1965 (20 U.S.C. design, and utilization. (III) ELIGIBILITY.—A local educational 1003). (C) STATE ENTITY ADMINISTRATION.—If a agency is eligible to receive a grant under (6) COMMUNITY COLLEGE.—The term ‘‘Com- State educational agency transfers funds to this clause if the local educational agency— munity College’’ means a public non-profit a State entity described in paragraph (aa) is eligible to receive a payment under institution of higher education as defined in (3)(A)(ii), the State educational agency shall section 8002 or 8003 of the Elementary and section 101(a) of the Higher Education Act, transfer to such entity 0.75 percent of the Secondary Education Act of 1965 (20 U.S.C. whose highest degree offered is predomi- amount reserved under subparagraph (A) for nantly the associate degree. 7702 and 7703) for fiscal year 2008; and (bb) has— the purpose of administering the distribution SEC. 804. GRANTS FOR SCHOOL RENOVATION, (AA) a total taxable assessed value of real of grants under this subsection. REPAIR, AND CONSTRUCTION. (a) ALLOCATION property that may be taxed for school pur- (2) ALLOTMENTS TO THE LOCAL EDUCATIONAL OF FUNDS.— poses of less than $100,000,000; or AGENCIES WITH THE MOST POOR CHILDREN.— (1) RESERVATIONS.— (BB) an assessed value of real property per (A) IN GENERAL.— (A) OUTLYING AREAS AND BUREAU OF INDIAN student that may be taxed for school pur- (i) ELIGIBLE LOCAL EDUCATIONAL AGENCY.— EDUCATION.—From the funds appropriated to poses that is less than the average of the as- In this subparagraph, the term ‘‘eligible carry out this section, the Secretary shall sessed value of real property per student local educational agency’’ means a local edu- reserve 1 percent to provide assistance under that may be taxed for school purposes in the cational agency that is 1 of the 100 local edu- this section to the outlying areas and for State in which the local educational agency cational agencies in the United States that payments to the Secretary of the Interior to is located. serve the most students who are poor chil- provide assistance consistent with this sec- (IV) CRITERIA FOR GRANTS.—In awarding dren. tion to schools funded by the Bureau of In- grants under this clause, the Secretary shall (ii) ALLOTMENT.—Not later than 60 days dian Education. Funds reserved under this consider the following criteria: after the date a State educational agency re- subparagraph shall be distributed by the Sec- (aa) Whether the facility poses a health or ceives an allocation from the Secretary retary among the outlying areas and the safety threat to students and school per- under this section, the State educational Secretary of the Interior on the basis of rel- sonnel, including noncompliance with build- agency shall allot to each eligible local edu- ative need, as determined by the Secretary, ing codes and inaccessibility for persons with cational agency in the State an amount de- in accordance with the purposes of this sec- disabilities, or whether the existing building termined under clause (iii) to be used con- tion. capacity meets the needs of the current en- sistent with subsection (c) for school repair, (B) IMPACT AID SCHOOLS.— rollment and supports the provision of com- renovation, and construction. (i) IN GENERAL.—From the funds appro- prehensive educational services to meet cur- (iii) DETERMINATION OF AMOUNT.—An allot- priated to carry out this section, the Sec- rent standards in the State in which the ment under this subparagraph to an eligible retary shall reserve 2 percent to make pay- local educational agency is located. local educational agency shall be in an ments and award grants to local educational (bb) The extent to which the new design amount that bears the same relation to the agencies under section 8007 of the Elemen- and proposed construction utilize energy ef- amount allocated to the State under this tary and Secondary Education Act of 1965 (20 ficient and recyclable materials. section and not reserved under paragraph (1), U.S.C. 7707). (cc) The extent to which the new design as the amount of funds under part A of title (ii) CONSTRUCTION PAYMENTS AUTHORIZED.— and proposed construction utilizes non-tradi- I of the Elementary and Secondary Edu- (I) IN GENERAL.—From 40 percent of the tional or alternative building methods to ex- cation Act of 1965 (20 U.S.C. 6311 et seq.) that amount reserved under clause (i), the Sec- pedite construction and project completion the eligible local educational agency re- retary shall make payments in accordance and maximize cost efficiency. ceived from the State for the most recent fis- with section 8007(a) of the Elementary and (dd) The feasibility of project completion cal year for which data is available bears to Secondary Education Act of 1965 (20 U.S.C. within 24 months from award. the total amount of such funds received by 7707(a)), except that the amount of such pay- (ee) The availability of other resources for all local educational agencies in the State ments shall be determined in accordance the proposed project. under such part for the most recent fiscal with subclause (II). (C) ADMINISTRATION AND OVERSIGHT.—The year for which data is available. (II) AMOUNT OF PAYMENTS.—The Secretary Secretary may, in addition, reserve up to (B) NO ELIGIBILITY FOR COMPETITIVE shall make a payment to each local edu- $5,000,000 of the amount appropriated to GRANTS.—No local educational agency re- cational agency eligible for a payment under carry out this section for administration and ceiving funding under subparagraph (A) shall section 8007(a) of the Elementary and Sec- oversight of this section. be eligible for funding under paragraph (3). ondary Education Act of 1965 (20 U.S.C. (2) ALLOCATION TO STATE EDUCATIONAL (C) PRIORITY IN FUNDING GREEN PROJECTS.— 7707(a)) in an amount that bears the same re- AGENCIES.— A local educational agency that receives lationship to the funds made available under (A) IN GENERAL.—Except as provided in funding under subparagraph (A) shall give subclause (I) as the number of children deter- subparagraph (B), after making the reserva- priority to funding school repair, renovation, mined under subparagraphs (B), (C), and tions described in paragraph (1), from the re- or construction projects that are certified, (D)(i) of section 8003(a)(1) of the Elementary mainder of the appropriated funds described verified, or consistent with any applicable and Secondary Education Act of 1965 (20 in paragraph (1), the Secretary shall allocate provisions of— U.S.C. 7703(a)(1)(B), (C), and (D)(i)) who were to each State educational agency serving a (i) the LEED Green Building Rating Sys- in average daily attendance in the local edu- State an amount that bears the same rela- tem; cational agency for the most recent year for tion to the remainder as the amount the (ii) Energy Star; which such information is available bears to State received under part A of title I of the (iii) the CHPS Criteria; the number of such children in all the local Elementary and Secondary Education Act of (iv) Green Globes; or educational agencies eligible for a payment 1965 (20 U.S.C. 6311 et seq.) for fiscal year 2008 (v) an equivalent program adopted by the under section 8007(a) of the Elementary and bears to the amount all States received State or another jurisdiction with authority Secondary Education Act of 1965 (20 U.S.C. under such part for fiscal year 2008. over the local educational agency. 7707(a)). (B) MINIMUM AMOUNT.—No State edu- (3) RESERVATION FOR COMPETITIVE SCHOOL (iii) SCHOOL FACILITY EMERGENCY AND MOD- cational agency shall receive less than 0.5 RENOVATION, REPAIR, AND CONSTRUCTION ERNIZATION GRANTS AUTHORIZED.— percent of the amount allocated under this GRANTS TO LOCAL EDUCATIONAL AGENCIES.— (I) IN GENERAL.—From 60 percent of the paragraph. (A) IN GENERAL.—After making the res- amount reserved under clause (i), the Sec- (3) SPECIAL RULE.—The Secretary shall ervation described in paragraph (1), from the retary— make and distribute the reservations and al- remainder of the funds allocated to a State

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00045 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.038 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1148 CONGRESSIONAL RECORD — SENATE January 30, 2009 educational agency under this section, the renovation, repair, and construction of pub- other events for which admission is charged State educational agency shall— lic school facilities without assistance under to the general public; (i) award grants to local educational agen- this section, including the ability of the (D) improvement or construction of stand- cies to be used, consistent with subsection local educational agency to raise funds alone facilities whose purpose is not the edu- (c), for school renovation, repair, and con- through the use of local bonding capacity cation of children, including central office struction; or and otherwise. administration or operations or logistical (ii) if such State educational agency is not (vi) LIKELIHOOD OF MAINTAINING THE FACIL- support facilities; or responsible for the financing of education fa- ITY.—The likelihood that the local edu- (E) purchase of information technology cilities, transfer such funds to the State en- cational agency will maintain, in good con- hardware, including computers, monitors, or tity responsible for the financing of edu- dition, any facility whose renovation, repair, printers. cation facilities (referred to in this section or construction is assisted under this sec- (3) SUPPLEMENT, NOT SUPPLANT.— as the ‘‘State entity’’) to award grants to tion. (A) IN GENERAL.—Except as provided in local educational agencies to be used as de- (vii) CHARTER SCHOOL ACCESS TO FUNDING.— subparagraph (B) and excluding the uses de- scribed in clause (i). In the case of a local educational agency scribed in paragraph (1)(C), a local edu- (B) COMPETITIVE GRANTS TO LOCAL EDU- that proposes to fund a renovation, repair, or cational agency shall use Federal funds re- CATIONAL AGENCIES.—The State educational construction project for a charter school, the ceived under this section only to supplement agency or State entity shall carry out a pro- extent to which the school has access to the amount of funds that would, in the ab- gram awarding grants, on a competitive funding for the project through the financing sence of such Federal funds, be made avail- basis, to local educational agencies for the methods available to other public schools or able from non-Federal sources for school ren- purpose described in subparagraph (A). Of local educational agencies in the State. ovation, repair, and construction. the total amount allocated to the State (D) POSSIBLE MATCHING REQUIREMENT.— (B) EXCEPTION.—A local educational agen- under this section and not reserved under (i) IN GENERAL.—A State educational agen- cy that is located in a State that is under a paragraph (1), the State educational agency cy or State entity may require local edu- court order to finance school facilities shall or State entity, shall carry out the fol- cational agencies to match competitive not be subject to the requirement under sub- lowing: grant funds awarded under this section. paragraph (A). (i) Award to high-need local educational (ii) MATCH AMOUNT.—The amount of a (d) QUALIFIED BIDDERS; COMPETITION.— agencies, in the aggregate, not less than an match described in clause (i) may be estab- Each local educational agency that receives amount which bears the same relationship to lished by using a sliding scale that takes funds under this section shall ensure that, if such total amount as the aggregate amount into account the relative poverty of the pop- the local educational agency carries out ren- such high-need local educational agencies re- ulation served by the local educational agen- ovation, repair, or construction through a ceived under part A of title I of the Elemen- cy. contract, any such contract process ensures tary and Secondary Education Act of 1965 (20 the maximum number of qualified bidders, U.S.C. 6311 et seq.) for fiscal year 2008 bears (c) RULES APPLICABLE TO SCHOOL RENOVA- including small, minority, and women-owned to the aggregate amount received for such TION, REPAIR, AND CONSTRUCTION.—With re- businesses, through full and open competi- fiscal year under such part by all local edu- spect to funds made available under this sec- tion. cational agencies in the State, reduced by tion that are used for school renovation, re- (e) REPORTING.— the total amount the State educational pair, and construction, the following rules (1) LOCAL REPORTING.—Each local edu- agency has allotted under paragraph (2). shall apply: (ii) Award to rural local educational agen- (1) PERMISSIBLE USES OF FUNDS.—School cational agency receiving funds made avail- cies, in the aggregate, not less than an renovation, repair, and construction shall be able under this section shall submit a report amount which bears the same relationship to limited to 1 or more of the following: to the State educational agency, at such such total amount as the aggregate amount (A) Upgrade, repair, construct, or replace time as the State educational agency may such rural local educational agencies re- existing or planned public school building require describing the use of such funds for ceived under such part for fiscal year 2008 systems and components to improve the school renovation, repair, and construction, bears to the aggregate amount received for quality of education and ensure the health including the following: such fiscal year under such part by all local and safety of students and staff, including— (A) Type and description of work com- educational agencies in the State. (i) repairing, replacing, or constructing pleted. (iii) Award the remaining funds to local early learning facilities (including renova- (B) The source of any non-federal funds educational agencies not receiving an award tion of existing facilities to serve children used to complete the project. under clause (i) or (ii), including high-need under 5 years of age); (C) Person hours needed at various wage local educational agencies and rural local (ii) repairing, replacing, or installing roofs, levels to complete the project. educational agencies that did not receive windows, doors, electrical wiring, plumbing (D) Anticipated energy or natural resource such an award. systems, or sewage systems; savings. (C) CRITERIA FOR AWARDING COMPETITIVE (iii) repairing, replacing, or installing (2) STATE REPORTING.—Each State edu- GRANTS.—In awarding competitive grants heating, ventilation, or air conditioning sys- cational agency receiving funds made avail- under this paragraph, a State educational tems (including insulation); and able under this section shall submit to the agency or State entity shall take into ac- (iv) bringing public schools into compli- Secretary, not later than December 31, 2010, count the following criteria: ance with fire and safety codes. a report on the use of funds received under (i) PERCENTAGE OF POOR CHILDREN.—The (B) Modifications necessary to reduce the subsection (a)(2) and made available to local percentage of poor children in a local edu- consumption of electricity, natural gas, oil, educational agencies for school renovation, cational agency. water, coal, or land. repair, and construction. (ii) NEED FOR SCHOOL RENOVATION, REPAIR, (C) Modifications necessary to make public (f) ADMINISTRATIVE COSTS.—Each local edu- AND CONSTRUCTION.—The need of a local edu- school facilities accessible to comply with cational agency that receives funds under cational agency for school renovation, re- the Americans with Disabilities Act of 1990 this section may reserve not more than 1 pair, and construction, as demonstrated by (42 U.S.C. 12101 et seq.) and section 504 of the percent of the funds or $750,000, whichever the condition of the public school facilities Rehabilitation Act of 1973 (29 U.S.C. 794). amount is less, for the purpose of— of the local educational agency. (D) Improve environmental conditions of (1) administering school renovation, re- (iii) GREEN SCHOOLS.—The extent to which school sites, including asbestos abatement or pair, and construction projects; and the local educational agency will make use removal, and the reduction or elimination of (2) reporting under subsection (e). of green practices that are certified, verified, human exposure to lead-based paint, mold, (g) REALLOCATION.—If a State educational or consistent with any applicable provisions or mildew. agency does not apply for an allocation of of— (E) Upgrade or install educational tech- funds under subsection (a)(2), or does not use (I) the LEED Green Building Rating Sys- nology infrastructure to ensure that stu- its entire allocation, then the Secretary may tem; dents have access to up-to-date educational reallocate the amount of the State edu- (II) Energy Star; technology. cational agency’s allocation (or the remain- (III) the CHPS Criteria; (F) Broaden or improve the use of school der thereof, as the case may be) to the re- (IV) Green Globes; or buildings and grounds to the community to maining State educational agencies in ac- (V) an equivalent program adopted by the improve educational outcomes. cordance with subsection (a)(2). State or another jurisdiction with authority (2) IMPERMISSIBLE USES OF FUNDS.—No (h) APPLICATION OF GEPA.—The grant pro- over the local educational agency. funds received under this section may be gram under this section is an applicable pro- (iv) CAPABILITY TO IMPLEMENT PROJECTS EX- used for— gram (as that term is defined in section 400 PEDITIOUSLY.—The capability of the local (A) payment of maintenance costs in con- of the General Education Provisions Act (20 educational agency to implement school ren- nection with any projects constructed in U.S.C. 1221)) subject to section 439 of such ovation, repair, or construction projects ex- whole or part with Federal funds provided Act (20 U.S.C. 1232b). peditiously. under this section; (i) DEFINITIONS.—In this section: (v) FISCAL CAPACITY.—The fiscal capacity (B) purchase or upgrade of vehicles; (1) IN GENERAL.—The terms ‘‘local edu- of a local educational agency to meet the (C) stadiums or other facilities primarily cational agency’’, ‘‘Secretary’’, and ‘‘State needs of the local educational agency for used for athletic contests or exhibitions or educational agency’’ have the meanings

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00046 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.038 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1149 given the terms in section 9101 of the Ele- of the Longshore and Harbor Workers’ Com- $990,092,000, to remain available until Sep- mentary and Secondary Education Act of pensation Act (33 U.S.C. 902(3)(F)) is amend- tember 30, 2013, of which $172,820,000 shall be 1965 (20 U.S.C. 7801). ed— for child development centers; $174,304,000 (2) CHARTER SCHOOL.—The term ‘‘charter (1) by striking ‘‘, repair or dismantle’’; and shall be for barracks; $125,000,000 shall be for school’’ has the meaning given the term in (2) by striking the semicolon and inserting health clinic replacement, and $494,362,000 section 5210 of the Elementary and Sec- ‘‘, or individuals employed to repair any rec- shall be for energy conservation and alter- ondary Education Act of 1965 (20 U.S.C. reational vessel, or to dismantle any part of native energy projects (including acquisi- 7221i). a recreational vessel in connection with the tion, construction, installation, and equip- (3) CHPS CRITERIA.—The term ‘‘CHPS Cri- repair of such vessel;’’. ment): Provided, That notwithstanding any teria’’ means the green building rating pro- TITLE IX—LEGISLATIVE BRANCH other provision of law, such funds may be ob- gram developed by the Collaborative for GOVERNMENT ACCOUNTABLIITY OFFICE ligated and expended to carry out planning High Performance Schools. and design and military construction SALARIES AND EXPENSES (4) ENERGY STAR.—The term ‘‘Energy Star’’ projects in the United States not otherwise means the Energy Star program of the De- For an additional amount for ‘‘Salaries authorized by law: Provided further, That of and Expenses’’ of the Government Account- partment of Energy and the Environmental the funds provided under this heading, not to ability Office, $20,000,000, to remain available Protection Agency. exceed $23,606,000 shall be available for study, until September 30, 2010. (5) GREEN GLOBES.—The term ‘‘Green planning, design, and architect and engineer Globes’’ means the Green Building Initiative GENERAL PROVISIONS—THIS TITLE services: Provided further, That within 30 environmental design and rating system. SEC. 901. GOVERNMENT ACCOUNTABILITY OF- days of enactment of this Act the Secretary (6) HIGH-NEED LOCAL EDUCATIONAL AGEN- FICE REVIEWS AND REPORTS. (a) REVIEWS AND of the Navy shall submit to the Committees CY.—The term ‘‘high-need local educational REPORTS.— on Appropriations of both Houses of Con- agency’’ has the meaning given the term in (1) IN GENERAL.—The Comptroller General gress an expenditure plan for funds provided section 2102(3)(A) of the Elementary and Sec- shall conduct bimonthly reviews and prepare under this heading prior to obligation. ondary Education Act of 1965 (20 U.S.C. reports on such reviews on the use by se- MILITARY CONSTRUCTION, AIR FORCE 6602(3)(A)). lected State and localities of funds made For an additional amount for ‘‘Military (7) LEED GREEN BUILDING RATING SYSTEM.— available in this Act. Such reports, along Construction, Air Force’’, $871,332,000, to re- The term ‘‘LEED Green Building Rating Sys- with any audits conducted by the Comp- main available until September 30, 2013, of tem’’ means the United States Green Build- troller General of such funds, shall be posted which $80,100,000 shall be for child develop- ing Council Leadership in Energy and Envi- on the Internet and linked to the website es- ment centers; $612,246,000 shall be for dor- ronmental Design green building rating tablished under this Act by the Recovery Ac- mitories; and $138,100,000 shall be for health standard. countability and Transparency Board. clinics (including acquisition, construction, (8) OUTLYING AREA.—The term ‘‘outlying (2) REDACTIONS.—Any portion of a report or installation, and equipment): Provided, That area’’ has the meaning given the term in sec- audit under this subsection may be redacted notwithstanding any other provision of law, tion 1121(c) of the Elementary and Secondary when made publicly available, if that portion such funds may be obligated and expended to Education Act of 1965 (20 U.S.C. 6331(c)). would disclose information that is not sub- carry out planning and design and military (9) POOR CHILDREN.—The term ‘‘poor chil- ject to disclosure under section 552 of title 5, construction projects in the United States dren’’ refers to children 5 to 17 years of age, United States Code (commonly known as the not otherwise authorized by law: Provided inclusive, who are from families with in- Freedom of Information Act). further, That of the funds provided under this comes below the poverty line (as defined by (b) EXAMINATION OF RECORDS.—The Comp- heading, not to exceed $40,886,000 shall be the Office of Management and Budget and re- troller General may examine any records re- available for study, planning, design, and ar- vised annually in accordance with section lated to obligations of funds made available chitect and engineer services: Provided fur- 673(2) of the Community Services Block in this Act. ther, That within 30 days of enactment of Grant Act (42 U.S.C. 9902(2)) applicable to a SEC. 902. ACCESS OF GOVERNMENT ACCOUNT- this Act the Secretary of the Air Force shall ABILITY OFFICE. Each contract awarded using family of the size involved for the most re- submit to the Committees on Appropriations funds made available in this Act shall pro- cent fiscal year for which data satisfactory of both Houses of Congress an expenditure vide that the Comptroller General and his to the Secretary are available. plan for funds provided under this heading representatives are authorized— (10) RURAL LOCAL EDUCATIONAL AGENCY.— prior to obligation. (1) to examine any records of the con- The term ‘‘rural local educational agency’’ MILITARY CONSTRUCTION, DEFENSE-WIDE tractor or any of its subcontractors, or any means a local educational agency that the For an additional amount for ‘‘Military State or local agency administering such State determines is located in a rural area Construction, Defense-Wide’’, $118,560,000 for contract, that directly pertain to, and in- using objective data and a commonly em- the Energy Conservation Investment Pro- volve transactions relating to, the contract ployed definition of the term ‘‘rural’’. gram, to remain available until September or subcontract; and (11) STATE.—The term ‘‘State’’ means each 30, 2010: Provided, That notwithstanding any (2) to interview any current employee re- of the several States of the United States, other provision of law, such funds may be ob- garding such transactions. the District of Columbia, and the Common- ligated and expended to carry out planning wealth of Puerto Rico. TITLE X—MILITARY CONSTRUCTION AND and design and military construction VETERANS AFFAIRS, AND RELATED (TRANSFER OF FUNDS) projects in the United States not otherwise AGENCIES authorized by law: Provided further, That SEC. 805. (a) Not more than 1 percent of the DEPARTMENT OF DEFENSE within 30 days of enactment of this Act the funds made available to the Department of Secretary of Defense shall submit to the Labor in this title may be transferred by the MILITARY CONSTRUCTION, ARMY Committees on Appropriations of both Secretary of Labor to ‘‘Employment and For an additional amount for ‘‘Military Houses of Congress an expenditure plan for Training Administration—Program Adminis- Construction, Army’’, $637,875,000, to remain funds provided under this heading prior to tration’’, ‘‘Employment Standards Adminis- available until September 30, 2013, of which obligation. tration—Salaries and Expenses’’, ‘‘Occupa- $84,100,000 shall be for child development cen- tional Safety and Health Administration— ters; $481,000,000 shall be for warrior transi- MILITARY CONSTRUCTION, ARMY NATIONAL Salaries and Expenses’’ and ‘‘Departmental tion complexes; and $42,400,000 shall be for GUARD Management—Salaries and Expenses’’ for ex- health and dental clinics (including acquisi- For an additional amount for ‘‘Military penses necessary to administer and coordi- tion, construction, installation, and equip- Construction, Army National Guard’’, nate funds made available to the Department ment): Provided, That notwithstanding any $150,000,000 for readiness centers (including of Labor in this title; oversee and evaluate other provision of law, such funds may be ob- construction, acquisition, expansion, reha- the use of such funds; and enforce applicable ligated and expended to carry out planning bilitation, and conversion), to remain avail- laws and regulations governing worker and design and military construction able until September 30, 2013: Provided, That rights and protections associated with the projects in the United States not otherwise notwithstanding any other provision of law, authorized by law: That of funds made available in this Act. Provided further, such funds may be obligated and expended to (b) Not later than 10 days prior to obli- the funds provided under this heading, not to carry out planning and design and military gating any funds proposed to be transferred exceed $30,375,000 shall be available for study, construction projects in the United States under subsection (a), the Secretary shall pro- planning, design, and architect and engineer not otherwise authorized by law: Provided vide to the Committees on Appropriations of services: Provided further, That within 30 further, That within 30 days of enactment of the House of Representatives and the Senate days of enactment of this Act the Secretary this Act the Director of the Army National an operating plan describing the planned of the Army shall submit to the Committees Guard shall submit to the Committees on uses of each amount proposed to be trans- on Appropriations of both Houses of Con- Appropriations of both Houses of Congress ferred. gress an expenditure plan for funds provided an expenditure plan for funds provided under (c) Funds transferred under this section under this heading prior to obligation. this heading prior to obligation. may be available for obligation through Sep- MILITARY CONSTRUCTION, NAVY AND MARINE MILITARY CONSTRUCTION, AIR NATIONAL tember 30, 2010. CORPS GUARD SEC. 806. ELIGIBLE EMPLOYEES IN THE REC- For an additional amount for ‘‘Military For an additional amount for ‘‘Military REATIONAL MARINE INDUSTRY. Section 2(3)(F) Construction, Navy and Marine Corps’’, Construction, Air National Guard’’,

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00047 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.038 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1150 CONGRESSIONAL RECORD — SENATE January 30, 2009

$110,000,000, to remain available until Sep- ‘‘(1) ACQUISITION OF PROPERTY AT OR NEAR burse for certain losses upon private sale of, tember 30, 2013: Provided, That notwith- MILITARY INSTALLATIONS THAT HAVE BEEN OR- or foreclosure against, any property im- standing any other provision of law, such DERED TO BE CLOSED.—Notwithstanding any proved with a one- or two-family dwelling funds may be obligated and expended to other provision of law’’; situated at or near a military base or instal- carry out planning and design and military (C) by striking ‘‘if he determines’’ and in- lation, if the Secretary determines— construction projects in the United States serting ‘‘if— ‘‘(A) that the owner is a member of the not otherwise authorized by law: Provided ‘‘(A) the Secretary determines—’’; Armed Forces serving on permanent assign- further, That within 30 days of enactment of (D) in clause (iii), as redesignated by sub- ment; this Act the Director of the Air National paragraph (A), by striking the period at the ‘‘(B) that the owner is permanently reas- Guard shall submit to the Committees on end and inserting ‘‘; or’’; and signed by order of the United States Govern- Appropriations of both Houses of Congress (E) by adding at the end the following: ment to a duty station or home port outside an expenditure plan for funds provided under ‘‘(B) the Secretary determines— a 50-mile radius of the base or installation; this heading prior to obligation. ‘‘(i) that the conditions in clauses (i) and ‘‘(C) that the reassignment was ordered be- FAMILY HOUSING CONSTRUCTION, ARMY (ii) of subparagraph (A) have been met; tween February 1, 2006, and September 30, For an additional amount for ‘‘Family ‘‘(ii) that the closing or realignment of the 2012, or an earlier end date designated by the Housing Construction, Army’’, $34,570,000, to base or installation resulted from a realign- Secretary; remain available until September 30, 2013: ment or closure carried out under the 2005 ‘‘(D) that the property was purchased by Provided, That notwithstanding any other round of defense base closure and realign- the owner before July 1, 2006; provision of law, such funds may be obli- ment under the Defense Base Closure and Re- ‘‘(E) that the property was sold by the gated and expended to carry out planning alignment Act of 1990 (part XXIX of Public owner between July 1, 2006, and September and design and military construction Law 101–510; 10 U.S.C. 2687 note); 30, 2012, or an earlier end date designated by projects in the United States not otherwise ‘‘(iii) that the property was purchased by the Secretary; authorized by law: Provided further, That the owner before July 1, 2006; ‘‘(F) that the property is the primary resi- within 30 days of enactment of this Act the ‘‘(iv) that the property was sold by the dence of the owner; and Secretary of the Army shall submit to the owner between July 1, 2006, and September ‘‘(G) that the owner has not previously re- Committees on Appropriations of both 30, 2012, or an earlier end date designated by ceived benefit payments authorized under Houses of Congress an expenditure plan for the Secretary; this subsection.’’; funds provided under this heading prior to ‘‘(v) that the property is the primary resi- (2) in subsection (b), by striking ‘‘this sec- obligation. dence of the owner; and tion’’ each place it appears and inserting FAMILY HOUSING OPERATION AND ‘‘(vi) that the owner has not previously re- ‘‘subsection (a)(1)’’; MAINTENANCE, ARMY ceived benefit payments authorized under (3) in subsection (c)— For an additional amount for ‘‘Family this subsection. (A) by striking ‘‘Such persons’’ and insert- Housing Operation and Maintenance, Army’’, ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED ing the following: $3,932,000: Provided, That notwithstanding MEMBERS OF THE ARMED FORCES, DEPARTMENT ‘‘(1) HOMEOWNER ASSISTANCE RELATED TO any other provision of law, such funds may OF DEFENSE AND UNITED STATES COAST GUARD CLOSED MILITARY INSTALLATIONS.— be obligated and expended for operation and CIVILIAN EMPLOYEES, AND THEIR SPOUSES.— ‘‘(A) IN GENERAL.—Such persons’’; maintenance and minor construction Notwithstanding any other provision of law, (B) by striking ‘‘set forth above shall elect projects in the United States not otherwise the Secretary of Defense is authorized to ac- either (1) to receive’’ and inserting the fol- authorized by law. quire title to, hold, manage, and dispose of, lowing: ‘‘set forth in subsection (a)(1) shall or, in lieu thereof, to reimburse for certain elect either— FAMILY HOUSING CONSTRUCTION, AIR FORCE losses upon private sale of, or foreclosure ‘‘(i) to receive’’; For an additional amount for ‘‘Family against, any property improved with a one- (C) by striking ‘‘difference between (A) 95 Housing Construction, Air Force’’, or two-family dwelling which was at the per centum’’ and all that follows through $80,100,000, to remain available until Sep- time of the relevant wound, injury, or ill- ‘‘(B) the fair market value’’ and inserting tember 30, 2013: Provided, That notwith- ness, the primary residence of— the following: ‘‘difference between— standing any other provision of law, such ‘‘(A) any member of the Armed Forces in ‘‘(I) 95 per centum of the fair market value funds may be obligated and expended to medical transition who— of their property (as such value is deter- carry out planning and design and military ‘‘(i) incurred a wound, injury, or illness in mined by the Secretary of Defense) prior to construction projects in the United States the line of duty during a deployment in sup- public announcement of intention to close not otherwise authorized by law: Provided port of the Armed Forces; all or part of the military base or installa- further, That within 30 days of enactment of ‘‘(ii) is disabled to a degree of 30 percent or tion; and this Act the Secretary of the Air Force shall submit to the Committees on Appropriations more as a result of such wound, injury, or ill- ‘‘(II) the fair market value’’; of both Houses of Congress an expenditure ness, as determined by the Secretary of De- (D) by striking ‘‘time of the sale, or (2) to plan for funds provided under this heading fense or the Secretary of Veterans Affairs; receive’’ and inserting the following: ‘‘time prior to obligation. and of the sale; or ‘‘(iii) is reassigned in furtherance of med- ‘‘(ii) to receive’’; FAMILY HOUSING OPERATION AND ical treatment or rehabilitation, or due to (E) by striking ‘‘outstanding mortgages. MAINTENANCE, AIR FORCE medical retirement in connection with such The Secretary may also pay a person who For an additional amount for ‘‘Family disability; elects to receive a cash payment under Housing Operation and Maintenance, Air ‘‘(B) any civilian employee of the Depart- clause (1) of the preceding sentence an Force’’, $16,461,000: Provided, That notwith- ment of Defense or the United States Coast amount’’ and inserting ‘‘outstanding mort- standing any other provision of law, such Guard who— gages. funds may be obligated and expended for op- ‘‘(i) was wounded, injured, or became ill in ‘‘(B) REIMBURSEMENT OF EXPENSES.—The eration and maintenance and minor con- the line of duty during a forward deployment Secretary may also pay a person who elects struction projects in the United States not in support of the Armed Forces; and to receive a cash payment under subpara- otherwise authorized by law. ‘‘(ii) is reassigned in furtherance of med- graph (A) an amount’’; and HOMEOWNERS ASSISTANCE FUND ical treatment, rehabilitation, or due to (F) by striking ‘‘best interest of the Fed- For an additional amount for ‘‘Home- medical retirement resulting from the sus- eral Government. Cash payment’’ and insert- owners Assistance Fund’’, established by sec- tained disability; or ing the following: ‘‘best interest of the tion 1013 of the Demonstration Cities and ‘‘(C) the spouse of a member of the Armed United States. Metropolitan Development Act of 1966, as Forces or a civilian employee of the Depart- ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED amended (42 U.S.C. 3374), $410,973,000, to re- ment of Defense or the United States Coast INDIVIDUALS AND THEIR SPOUSES.— main available until expended. Guard if— ‘‘(A) IN GENERAL.—Persons eligible under ADMINISTRATIVE PROVISION ‘‘(i) the member or employee was killed in the criteria set forth in subsection (a)(2) may SEC. 1001. (a) TEMPORARY EXPANSION OF the line of duty during a deployment in sup- elect either— HOMEOWNERS ASSISTANCE PLAN TO RESPOND port of the Armed Forces or died from a ‘‘(i) to receive a cash payment as com- TO MORTGAGE FORECLOSURE AND CREDIT CRI- wound, injury, or illness incurred in the line pensation for losses which may be or have SIS.—Section 1013 of the Demonstration Cit- of duty during such a deployment; and been sustained in a private sale, in an ies and Metropolitan Development Act of ‘‘(ii) the spouse relocates from such resi- amount not to exceed the difference be- 1966 (42 U.S.C. 3374) is amended— dence within 2 years after the death of such tween— (1) in subsection (a)— member or employee. ‘‘(I) 95 per centum of prior fair market (A) by redesignating paragraphs (1), (2), ‘‘(3) TEMPORARY HOMEOWNER ASSISTANCE value of their property (as such value is de- and (3) as clauses (i), (ii), and (iii), respec- FOR MEMBERS OF THE ARMED FORCES PERMA- termined by the Secretary of Defense); and tively, and indenting such subparagraphs, as NENTLY REASSIGNED DURING SPECIFIED MORT- ‘‘(II) the fair market value of such prop- so redesignated, 6 ems from the left margin; GAGE CRISIS.—Notwithstanding any other erty (as such value is so determined) at the (B) by striking ‘‘Notwithstanding any provision of law, the Secretary of Defense is time of the wound, injury, or illness quali- other provision of law’’ and inserting the fol- authorized to acquire title to, hold, manage, fying the individual for benefits under sub- lowing: and dispose of, or, in lieu thereof, to reim- section (a)(2); or

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00048 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.039 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1151 ‘‘(ii) to receive, as purchase price for their tient Squadron, a Navy Patient Multidisci- main available until September 30, 2013, property an amount not to exceed 90 per cen- plinary Care Team, or a Marine Patient Af- which shall be for acceleration and construc- tum of prior fair market value as such value fairs Team/Wounded Warrior Regiment; and tion of ongoing and planned construction, in- is determined by the Secretary of Defense, or ‘‘(4) the term ‘nonappropriated fund instru- cluding physical security construction, of the amount of the outstanding mortgages. mentality employee’ means a civilian em- major medical facilities and National Ceme- ‘‘(B) DETERMINATION OF BENEFITS.—The ployee who— teries consistent with the Department of Secretary may also pay a person who elects ‘‘(A) is a citizen of the United States; and Veterans Affairs’ Five Year Capital Plan: to receive a cash payment under subpara- ‘‘(B) is paid from nonappropriated funds of Provided, That notwithstanding any other graph (A) an amount that the Secretary de- Army and Air Force Exchange Service, Navy provision of law, such funds may be obli- termines appropriate to reimburse the per- Resale and Services Support Office, Marine gated and expended to carry out planning son for the costs incurred by the person in Corps exchanges, or any other instrumen- and design and major medical facility con- the sale of the property if the Secretary de- tality of the United States under the juris- struction not otherwise authorized by law: termines that such payment will benefit the diction of the Armed Forces which is con- Provided further, That within 30 days of en- person and is in the best interest of the ducted for the comfort, pleasure, content- actment of this Act the Secretary of Vet- United States. ment, or physical or mental improvement of erans Affairs shall submit to the Committees ‘‘(3) HOMEOWNER ASSISTANCE FOR PERMA- members of the Armed Forces.’’. on Appropriations of both Houses of Con- NENTLY REASSIGNED INDIVIDUALS.— (b) CLERICAL AMENDMENT.—Such section is gress an expenditure plan for funds provided ‘‘(A) IN GENERAL.—Persons eligible under further amended in the section heading by under this heading prior to obligation. the criteria set forth in subsection (a)(3) may inserting ‘‘and certain property owned by CONSTRUCTION, MINOR PROJECTS elect either— members of the armed forces, department of For an additional amount for ‘‘Construc- ‘‘(i) to receive a cash payment as com- defense and united states coast guard civil- tion, Minor Projects’’, $939,836,000, to remain pensation for losses which may be or have ian employees, and surviving spouses’’ after available until September 30, 2010, of which been sustained in a private sale, in an ‘‘ordered to be closed’’. $860,742,000 shall be for Veterans Health Ad- amount not to exceed the difference be- (c) AUTHORITY TO USE APPROPRIATED ministration minor construction; $20,300,000 tween— FUNDS.—Notwithstanding subsection (i) of shall be for Veterans Benefits Administra- ‘‘(I) 95 per centum of prior fair market such section, amounts appropriated or other- tion minor construction, including $300,000 value of their property (as such value is de- wise made available by this title under the for energy efficiency initiatives; and termined by the Secretary of Defense); and heading ‘‘Homeowners Assistance Fund’’ $29,012,000 shall be for National Cemetery Ad- ‘‘(II) the fair market value of such prop- may be used for the Homeowners Assistance ministration minor construction. erty (as such value is so determined) at the Fund established under such section. GRANTS FOR CONSTRUCTION OF STATE time the person received change of perma- DEPARTMENT OF VETERANS AFFAIRS nent station orders; or EXTENDED CARE FACILITIES VETERANS HEALTH ADMINISTRATION ‘‘(ii) to receive, as purchase price for their For an additional amount for ‘‘Grants for property an amount not to exceed 90 per cen- MEDICAL SUPPORT AND COMPLIANCE Construction of State Extended Care Facili- tum of prior fair market value as such value For an additional amount for ‘‘Medical ties’’, $257,986,000, to remain available until is determined by the Secretary of Defense, or Support and Compliance’’, $5,000,000, to re- September 30, 2010, for grants to assist the amount of the outstanding mortgages. main available until September 30, 2010, to States to acquire or construct State nursing ‘‘(B) DETERMINATION OF BENEFITS.—The support contract administration and energy home and domiciliary facilities and to re- Secretary may also pay a person who elects initiative execution at the Veterans Health model, modify, or alter existing hospital, to receive a cash payment under subpara- Administration. nursing home, and domiciliary facilities in graph (A) an amount that the Secretary de- MEDICAL FACILITIES State homes, for furnishing care to veterans termines appropriate to reimburse the per- For an additional amount for ‘‘Medical Fa- as authorized by sections 8131 through 8137 of son for the costs incurred by the person in title 38, United States Code. the sale of the property if the Secretary de- cilities’’, $1,370,459,000, to remain available termines that such payment will benefit the until September 30, 2010, of which ADMINISTRATIVE PROVISION person and is in the best interest of the $1,047,313,000 shall be for facility condition SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS United States. assessment deficiencies and non-recurring WHO SERVED IN THE UNITED STATES ARMED ‘‘(4) COMPENSATION AND LIMITATIONS RE- maintenance at existing medical facilities; FORCES IN THE FAR EAST DURING WORLD WAR LATED TO FORECLOSURES AND ENCUM- and $323,146,000 shall be for energy efficiency II. (a) FINDINGS.—Congress makes the fol- BRANCES.—Cash payment’’; initiatives. lowing findings: (4) by striking subsection (g); NATIONAL CEMETERY ADMINISTRATION (1) The Philippine islands became a United (5) in subsection (l), by striking ‘‘(a)(2)’’ For an additional amount for ‘‘National States possession in 1898 when they were and inserting ‘‘(a)(1)(A)(ii)’’; Cemetery Administration’’, $64,961,000, to re- ceded from Spain following the Spanish- (6) in subsection (m), by striking ‘‘this sec- main available until September 30, 2010, of American War. tion’’ and inserting ‘‘subsection (a)(1)’’; which $59,476,000 shall be for capital infra- (2) During World War II, Filipinos served in (7) in subsection (n)— structure and memorial and monument re- a variety of units, some of which came under (A) in paragraph (1), by striking ‘‘this sec- pairs; and $5,485,000 shall be for energy effi- the direct control of the United States tion’’ and inserting ‘‘subsection (a)(1)’’; and ciency initiatives. Armed Forces. (3) The regular Philippine Scouts, the new (B) in paragraph (2), by striking ‘‘this sec- DEPARTMENTAL ADMINISTRATION tion’’ and inserting ‘‘subsection (a)(1)’’; Philippine Scouts, the Guerilla Services, and GENERAL OPERATING EXPENSES (8) in subsection (o)— more than 100,000 members of the Philippine (A) in paragraph (1), by striking ‘‘this sec- For an additional amount for ‘‘General Op- Commonwealth Army were called into the tion’’ and inserting ‘‘subsection (a)(1)’’; erating Expenses’’, $1,125,000, to remain service of the United States Armed Forces of (B) in paragraph (2), by striking ‘‘this sec- available until September 30, 2010, for addi- the Far East on July 26, 1941, by an executive tion’’ and inserting ‘‘subsection (a)(1)’’; and tional Full Time Equivalent salary and ex- order of President Franklin D. Roosevelt. (C) by striking paragraph (4); and penses for major construction project admin- (4) Even after hostilities had ceased, war- (9) by adding at the end the following new istration and execution and energy initiative time service of the new Philippine Scouts subsection: execution. continued as a matter of law until the end of ‘‘(p) DEFINITIONS.—In this section: INFORMATION TECHNOLOGY SYSTEMS 1946, and the force gradually disbanded and ‘‘(1) the term ‘Armed Forces’ has the For an additional amount for ‘‘Information was disestablished in 1950. meaning given the term ‘armed forces’ in Technology Systems’’, $195,000,000, to remain (5) Filipino veterans who were granted ben- section 101(a) of title 10, United States Code; available until September 30, 2010, of which efits prior to the enactment of the so-called ‘‘(2) the term ‘civilian employee’ has the $145,000,000 shall be for the Veterans Benefits Rescissions Acts of 1946 (Public Laws 79–301 meaning given the term ‘employee’ in sec- Administration’s development of paperless and 79–391) currently receive full benefits tion 2105(a) of title 5, United States Code; claims processing; and $50,000,000 shall be for under laws administered by the Secretary of ‘‘(3) the term ‘medical transition’, in the the development of systems required to im- Veterans Affairs, but under section 107 of case of a member of the Armed Forces, plement chapter 33 of title 38, United States title 38, United States Code, the service of means a member who— Code. certain other Filipino veterans is deemed ‘‘(A) is in Medical Holdover status; not to be active service for purposes of such OFFICE OF INSPECTOR GENERAL ‘‘(B) is in Active Duty Medical Extension laws. status; For an additional amount for ‘‘Office of In- (6) These other Filipino veterans only re- ‘‘(C) is in Medical Hold status; spector General’’, $4,400,000, to remain avail- ceive certain benefits under title 38, United ‘‘(D) is in a status pending an evaluation able until September 30, 2010, for oversight States Code, and, depending on where they by a medical evaluation board; and audit of programs, grants and projects legally reside, are paid such benefit amounts ‘‘(E) has a complex medical need requiring funded under this title. at reduced rates. six or more months of medical treatment; or CONSTRUCTION, MAJOR PROJECTS (7) The benefits such veterans receive in- ‘‘(F) is assigned or attached to an Army For an additional amount for ‘‘Construc- clude service-connected compensation bene- Warrior Transition Unit, an Air Force Pa- tion, Major Projects’’, $1,105,333,000, to re- fits paid under chapter 11 of title 38, United

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00049 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.039 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1152 CONGRESSIONAL RECORD — SENATE January 30, 2009 States Code, dependency indemnity com- title 31, United States Code, or the amount appropriated under this heading: Provided pensation survivor benefits paid under chap- of such benefits; further, That with respect to the funds made ter 13 of title 38, United States Code, and (B) eligibility of an individual to receive available for passport facilities and systems, burial benefits under chapters 23 and 24 of benefits under title VIII of the Social Secu- such plan shall be developed in consultation title 38, United States Code, and such bene- rity Act, or the amount of such benefits; or with the Department of Homeland Security fits are paid to beneficiaries at the rate of (C) eligibility of an individual for, or the and the General Services Administration and $0.50 per dollar authorized, unless they law- amount of benefits under, any other Federal shall coordinate and co-locate, to the extent fully reside in the United States. or federally assisted program. feasible, the construction of passport agen- (8) Dependents’ educational assistance (h) RELEASE.— cies with other Federal facilities. under chapter 35 of title 38, United States (1) IN GENERAL.—Except as provided in CAPITAL INVESTMENT FUND paragraph (2), the acceptance by an eligible Code, is also payable for the dependents of For an additional amount for ‘‘Capital In- person or surviving spouse, as applicable, of such veterans at the rate of $0.50 per dollar vestment Fund’’, $524,000,000, to remain a payment under this section shall be final, authorized, regardless of the veterans’ resi- available until September 30, 2010, of which and shall constitute a complete release of dency. up to $120,000,000 shall be available for the (b) COMPENSATION FUND.— any claim against the United States by rea- design and construction of a backup informa- (1) IN GENERAL.—There is in the general son of any service described in subsection tion management facility in the United fund of the Treasury a fund to be known as (d). States to support continuity of critical mis- the ‘‘Filipino Veterans Equity Compensation (2) PAYMENT OF PRIOR ELIGIBILITY STATUS.— sion operations and programs, and up to Fund’’ (in this section referred to as the Nothing in this section shall prohibit a per- $98,527,000 shall be available to carry out the ‘‘compensation fund’’). son from receiving any benefit (including Department of State’s responsibilities under (2) AVAILABILITY OF FUNDS.—Subject to the health care, survivor, or burial benefits) the Comprehensive National Cybersecurity availability of appropriations for such pur- which the person would have been eligible to Initiative: Provided, That the Secretary of pose, amounts in the fund shall be available receive based on laws in effect as of the day State and the Administrator of the United to the Secretary of Veterans Affairs without before the date of the enactment of this Act. States Agency for International Develop- fiscal year limitation to make payments to (i) RECOGNITION OF SERVICE.—The service ment shall coordinate information tech- eligible persons in accordance with this sec- of a person as described in subsection (d) is nology systems, where appropriate, to in- tion. hereby recognized as active military service crease efficiencies and eliminate (c) PAYMENTS.— in the Armed Forces for purposes of, and to redundancies, to include co-location of (1) IN GENERAL.—The Secretary may make the extent provided in, this section. backup information management facilities: a payment from the compensation fund to an (j) ADMINISTRATION.— Provided further, That the Secretary of State eligible person who, during the one-year pe- (1) The Secretary shall promptly issue ap- shall submit to the Committees on Appro- riod beginning on the date of the enactment plication forms and instructions to ensure priations within 90 days of enactment of this of this Act, submits to the Secretary a claim the prompt and efficient administration of Act a detailed spending plan for funds appro- for benefits under this section. The applica- the provisions of this section. priated under this heading. tion for the claim shall contain such infor- (2) The Secretary shall administer the pro- mation and evidence as the Secretary may visions of this section in a manner con- OFFICE OF INSPECTOR GENERAL require. sistent with applicable provisions of title 38, For an additional amount for ‘‘Office of In- (2) PAYMENT TO SURVIVING SPOUSE.—If an United States Code, and other provisions of spector General’’ for oversight requirements, eligible person who has filed a claim for ben- law, and shall apply the definitions in sec- $2,000,000, to remain available until Sep- efits under this section dies before payment tion 101 of such title in the administration of tember 30, 2010. is made under this section, the payment such provisions, except to the extent other- INTERNATIONAL COMMISSIONS under this section shall be made instead to wise provided in this section. INTERNATIONAL BOUNDARY AND WATER the surviving spouse, if any, of the eligible (k) REPORTS.—The Secretary shall include, COMMISSION, UNITED STATES AND MEXICO person. in documents submitted to Congress by the (d) ELIGIBLE PERSONS.—An eligible person Secretary in support of the President’s budg- CONSTRUCTION is any person who— et for each fiscal year, detailed information (INCLUDING TRANSFER OF FUNDS) (1) served— on the operation of the compensation fund, For an additional amount for ‘‘Construc- (A) before July 1, 1946, in the organized including the number of applicants, the num- tion’’ for the water quantity program to military forces of the Government of the ber of eligible persons receiving benefits, the meet immediate repair and rehabilitation re- Commonwealth of the Philippines, while amounts paid out of the compensation fund, quirements, $224,000,000, to remain available such forces were in the service of the Armed and the administration of the compensation until September 30, 2010: Provided, That up to Forces of the United States pursuant to the fund for the most recent fiscal year for $2,000,000 may be transferred to, and merged military order of the President dated July which such data is available. with, funds available under the heading 26, 1941, including among such military (l) AUTHORIZATION OF APPROPRIATION.— ‘‘International Boundary and Water Commis- forces organized guerrilla forces under com- There is authorized to be appropriated to the sion, United States and Mexico—Salaries and manders appointed, designated, or subse- compensation fund $198,000,000, to remain Expenses’’: Provided, That the Secretary of quently recognized by the Commander in available until expended, to make payments State shall submit to the Committees on Ap- Chief, Southwest Pacific Area, or other com- under this section. propriations within 90 days of enactment of petent authority in the Army of the United RELATED AGENCY this Act a detailed spending plan for funds States; or appropriated under this heading. (B) in the Philippine Scouts under section DEPARTMENT OF DEFENSE—CIVIL UNITED STATES AGENCY FOR 14 of the Armed Forces Voluntary Recruit- CEMETERIAL EXPENSES, ARMY INTERNATIONAL DEVELOPMENT ment Act of 1945 (59 Stat. 538); and SALARY AND EXPENSES FUNDS APPROPRIATED TO THE PRESIDENT (2) was discharged or released from service For an additional amount for ‘‘Cemeterial CAPITAL INVESTMENT FUND described in paragraph (1) under conditions Expenses, Army’’, $60,300,000, to remain other than dishonorable. available until September 30, 2010, for land For an additional amount for ‘‘Capital In- (e) PAYMENT AMOUNTS.—Each payment development, columbarium construction, vestment Fund’’, $100,000,000, to remain under this section shall be— and relocation of utilities at Arlington Na- available until September 30, 2010, of which (1) in the case of an eligible person who is tional Cemetery. $34,000,000 shall be available for information not a citizen of the United States, in the technology modernization programs and of TITLE XI—STATE, FOREIGN amount of $9,000; and which up to $35,000,000 shall be available for OPERATIONS, AND RELATED PROGRAMS (2) in the case of an eligible person who is implementation of the Global Acquisition a citizen of the United States, in the amount DEPARTMENT OF STATE System: Provided, That the Administrator of of $15,000. ADMINISTRATION OF FOREIGN AFFAIRS the United States Agency for International (f) LIMITATION.—The Secretary may not DIPLOMATIC AND CONSULAR PROGRAMS Development shall submit to the Commit- make more than one payment under this sec- tees on Appropriations within 90 days of en- For an additional amount for ‘‘Diplomatic tion for each eligible person described in sub- actment of this Act a detailed spending plan and Consular Programs’’ for urgent domestic section (d). for funds appropriated under this heading. (g) CLARIFICATION OF TREATMENT OF PAY- facilities requirements, $180,500,000, to re- MENTS UNDER CERTAIN LAWS.—Amounts paid main available until September 30, 2010, of OPERATING EXPENSES OF THE UNITED STATES to a person under this section— which up to $45,000,000 shall be available for AGENCY FOR INTERNATIONAL DEVELOPMENT (1) shall be treated for purposes of the in- passport and visa facilities and systems, and OFFICE OF INSPECTOR GENERAL ternal revenue laws of the United States as up to $75,000,000 shall be available for a con- For an additional amount for ‘‘Operating damages for human suffering; and solidated security training facility in the Expenses of the United States Agency for (2) shall not be included in income or re- United States: Provided, That the Secretary International Development Office of Inspec- sources for purposes of determining— of State shall submit to the Committees on tor General’’ for oversight requirements, (A) eligibility of an individual to receive Appropriations within 90 days of enactment $500,000, to remain available until September benefits described in section 3803(c)(2)(C) of of this Act a detailed spending plan for funds 30, 2010.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00050 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.039 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1153 TITLE XII—TRANSPORTATION AND the requirements of subchapter IV of chapter cent of the funds provided under this heading HOUSING AND URBAN DEVELOPMENT, 31 of title 40, United States Code: Provided to fund the award and oversight by the Ad- AND RELATED AGENCIES further, That the Secretary may retain up to ministrator of grants made under this head- DEPARTMENT OF TRANSPORTATION $5,000,000 of the funds provided under this ing. OFFICE OF THE SECRETARY heading, and may transfer portions of those FEDERAL HIGHWAY ADMINISTRATION funds to the Administrators of the Federal SUPPLEMENTAL DISCRETIONARY GRANTS FOR A SUPPLEMENTAL GRANTS FOR HIGHWAY Highway Administration, the Federal Tran- NATIONAL SURFACE TRANSPORTATION SYSTEM INVESTMENT sit Administration, the Federal Railroad Ad- For an additional amount for restoration, For an additional amount for capital in- ministration and the Maritime Administra- vestments in surface transportation infra- repair, construction and other activities eli- tion, to fund the award and oversight of gible under paragraph (b) of section 133 of structure, $5,500,000,000, to remain available grants made under this heading. until September 30, 2011: Provided, That the title 23, United States Code, $27,060,000,000: Secretary of Transportation shall distribute FEDERAL AVIATION ADMINISTRATION Provided, That funds provided under this funds provided under this heading as discre- SUPPLEMENTAL FUNDING FOR FACILITIES AND heading shall be apportioned to States using tionary grants to be awarded to State and EQUIPMENT the formula set forth in section 104(b)(3) of local governments on a competitive basis for For an additional amount for necessary in- such title: Provided further, That 180 days fol- projects that will have a significant impact vestments in Federal Aviation Administra- lowing the date of such apportionment, the Secretary of Transportation shall withdraw on the Nation, a metropolitan area, or a re- tion infrastructure, $200,000,000: Provided, from each State an amount equal to 50 per- gion: Provided further, That projects eligible That funding provided under this heading cent of the funds awarded to that grantee for funding provided under this heading shall shall be used to make improvements to less the amount of funding obligated, and the include, but not be limited to, highway or power systems, air route traffic control cen- Secretary shall redistribute such amounts to bridge projects eligible under title 23, United ters, air traffic control towers, terminal other States that have had no funds with- States Code, including interstate rehabilita- radar approach control facilities, and navi- drawn under this proviso in the manner de- tion, improvements to the rural collector gation and landing equipment: Provided fur- scribed in section 120(c) of division K of Pub- road system, the reconstruction of over- ther, That priority be given to such projects lic Law 110–161: Provided further, That 1 year passes and interchanges, bridge replace- or activities that will be completed within 2 following the date of such apportionment, ments, seismic retrofit projects for bridges, years of enactment of this Act: Provided fur- the Secretary shall withdraw from each re- and road realignments; public transportation ther, That amounts made available under cipient of funds apportioned under this head- projects eligible under chapter 53 of title 49, this heading may be provided through grants ing any unobligated funds and transfer such United States Code, including investments in in addition to the other instruments author- funds to ‘‘Supplemental Discretionary projects participating in the New Starts or ized under section 106(l)(6) of title 49, United Small Starts programs that will expedite the Grants for a National Surface Transpor- States Code: Provided further, That the Fed- completion of those projects and their entry tation System’’: Provided further, That at the eral share of the costs for which an expendi- into revenue service; passenger and freight request of a State, the Secretary of Trans- ture is made under this heading shall be 100 rail transportation projects; and port infra- portation may provide an extension of such percent: Provided further, That amounts pro- structure investments, including projects 1-year period only to the extent that he or vided under this heading may be used for ex- that connect ports to other modes of trans- she feels satisfied that the State has encoun- penses the agency incurs in administering portation and improve the efficiency of tered extreme conditions that create an un- this program: Provided further, That not freight movement: Provided further, That of workable bidding environment or other ex- more than 60 days after enactment of this the amount made available under this para- tenuating circumstances: Provided further, Act, the Administrator shall establish a graph, the Secretary may use an amount not That before granting a such an extension, process for applying, reviewing and awarding to exceed $200,000,000 for the purpose of pay- the Secretary shall send a letter to the grants and cooperative and other transaction ing the subsidy costs of projects eligible for House and Senate Committees on Appropria- agreements, including the form and content federal credit assistance under chapter 6 of tions that provides a thorough justification of an application, and requirements for the title 23, United States Code, if the Secretary for the extension: Provided further, That the maintenance of records that are necessary to finds that such use of the funds would ad- provisions of subsections 133(d)(3) and facilitate an effective audit of the use of the vance the purposes of this paragraph: Pro- 133(d)(4) of title 23, United States Code, shall funding provided: Provided further, That sec- vided further, That in distributing funds pro- apply to funds apportioned under this head- tion 50101 of title 49, United States Code, vided under this heading, the Secretary shall ing, except that the percentage of funds to be shall apply to funds provided under this take such measures so as to ensure an equi- allocated to local jurisdictions shall be 40 heading. table geographic distribution of funds and an percent and such allocation, notwith- appropriate balance in addressing the needs SUPPLEMENTAL DISCRETIONARY GRANTS FOR standing any other provision of law, shall be of urban and rural communities: Provided AIRPORT INVESTMENT conducted in all states within the United further, That a grant funded under this head- For an additional amount for capital ex- States: Provided further, That funds allocated ing shall be not less than $20,000,000 and not penditures authorized under sections 47102(3) to such urbanized areas and other areas shall greater than $500,000,000: Provided further, and 47504(c) of title 49, United States Code, not be subject to the redistribution of That the Federal share of the costs for which and for the procurement, installation and amounts required 180 days following the date an expenditure is made under this heading commissioning of runway incursion preven- of apportionment of funds provided under may be up to 100 percent: Provided further, tion devices and systems at airports of such this heading: Provided further, That funds ap- That the Secretary shall give priority to title, $1,100,000,000: Provided, That the Sec- portioned under this heading may be used projects that require an additional share of retary of Transportation shall distribute for, but not be limited to, projects that ad- Federal funds in order to complete an overall funds provided under this heading as discre- dress stormwater runoff, investments in pas- financing package, and to projects that are tionary grants to airports, with priority senger and freight rail transportation, and expected to be completed within 3 years of given to those projects that demonstrate to investments in port infrastructure: Provided enactment of this Act: Provided further, That his or her satisfaction their ability to be further, that each State shall use not less the Secretary shall publish criteria on which completed within 2 years of enactment of than 5 percent of funds apportioned to it for to base the competition for any grants this Act, and serve to supplement and not activities eligible under subsections 149(b) awarded under this heading not later than 75 supplant planned expenditures from airport- and (c) of title 23, United States Code: Pro- days after enactment of this Act: Provided generated revenues or from other State and vided further, That of the funds provided further, That the Secretary shall require ap- local sources on such activities: Provided fur- under this heading, $60,000,000 shall be for plications for funding provided under this ther, That the Federal share payable of the capital expenditures eligible under section heading to be submitted not later than 180 costs for which a grant is made under this 147 of title 23, United States Code: Provided days after enactment of this Act, and an- heading shall be 100 percent: Provided further, further, That the Secretary of Transpor- nounce all projects selected to be funded That the amount made available under this tation shall distribute such $60,000,000 as from such funds not later than 1 year after heading shall not be subject to any limita- competitive discretionary grants to States, enactment of this Act: Provided further, That tion on obligations for the Grants-in-Aid for with priority given to those projects that the Secretary shall require all additional ap- Airports program set forth in any Act: Pro- demonstrate to his or her satisfaction their plications to be submitted not later than 1 vided further, That section 50101 of title 49, ability to be completed within 2 years of en- year after enactment of this Act, and an- United States Code, shall apply to funds pro- actment of this Act: Provided further, That of nounce not later than 180 days following vided under this heading: Provided further, the funds provided under this heading, such 1-year period all additional projects se- That projects conducted using funds pro- $500,000,000 shall be for investments in trans- lected to be funded with funds withdrawn vided under this heading must comply with portation at Indian reservations and Federal from States and grantees and transferred the requirements of subchapter IV of chapter lands, and administered in accordance with from ‘‘Supplemental Grants for Highway In- 31 of title 40, United States Code: Provided chapter 2 of title 23, United States Code: Pro- vestments’’ and ‘‘Supplemental Grants for further, That the Administrator of the Fed- vided further, That of the funds identified in Public Transit Investment’’: Provided further, eral Aviation Administration may retain and the preceding proviso, $320,000,000 shall be for That projects conducted using funds pro- transfer to ‘‘Federal Aviation Administra- the Indian Reservation Roads program, vided under this heading must comply with tion, Operations’’ up to one-quarter of 1 per- $100,000,000 shall be for the Park Roads and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00051 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.039 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1154 CONGRESSIONAL RECORD — SENATE January 30, 2009 Parkways program, $70,000,000 shall be for provided under this heading must comply drawn under this proviso utilizing whatever the Forest Highway Program, and $10,000,000 with the requirements of subchapter IV of method he or she deems appropriate to en- shall be for the Refuge Roads program: Pro- chapter 31 of title 40, United States Code: sure that all funds provided under this para- vided further, That for investments at Indian Provided further, That section 24405(a) of title graph shall be utilized promptly: Provided reservations and Federal lands, priority shall 49, United States Code, shall apply to funds further, That 1 year following the date of be given to capital investments, and to provided under this heading: Provided further, such apportionment, the Secretary shall projects and activities that can be completed That the Administrator of the Federal Rail- withdraw from each grantee any unobligated within 2 years of enactment of this Act: Pro- road Administration may retain and transfer funds and transfer such funds to ‘‘Supple- vided further, That 1 year following the en- to ‘‘Federal Railroad Administration, Safety mental Discretionary Grants for a National actment of this Act, to ensure the prompt and Operations’’ up to one-quarter of 1 per- Surface Transportation System’’: Provided use of the $500,000,000 provided for invest- cent of the funds provided under this heading further, That at the request of a grantee, the ments at Indian reservations and Federal to fund the award and oversight by the Ad- Secretary of Transportation may provide an lands, the Secretary shall have the authority ministrator of grants made under this head- extension of such 1-year periods if he or she to redistribute unobligated funds within the ing. feels satisfied that the grantee has encoun- respective program for which the funds were SUPPLEMENTAL CAPITAL GRANTS TO THE tered an unworkable bidding environment or appropriated: Provided further, That up to 4 NATIONAL RAILROAD PASSENGER CORPORATION other extenuating circumstances: Provided percent of the funding provided for Indian For an additional amount for the imme- further, That before granting such an exten- Reservation Roads may be used by the Sec- diate investment in capital projects nec- sion, the Secretary shall send a letter to the retary of the Interior for program manage- essary to maintain and improve national House and Senate Committees on Appropria- ment and oversight and project-related ad- intercity passenger rail service, including tions that provides a thorough justification ministrative expenses: Provided further, That the rehabilitation of rolling stock, for the extension: Provided further, That of section 134(f)(3)(C)(ii)(II) of title 23, United $850,000,000: Provided, That funds made avail- the funds apportioned using the formula set States Code, shall not apply to funds pro- able under this heading shall be allocated di- forth in subsection 5311(c) of title 49, United vided under this heading: Provided further, rectly to the National Railroad Passenger States Code, 2 percent shall be made avail- That the Federal share payable on account Corporation: Provided further, That the Board able for section 5311(c)(1): Provided further, of any project or activity carried out with of Directors of the corporation shall take That of the funding provided under this funds made available under this heading measures to ensure that priority is given to heading, $200,000,000 shall be distributed as shall be at the option of the recipient, and capital projects that expand passenger rail discretionary grants to public transit agen- may be up to 100 percent of the total cost capacity: Provided further, That the Board of cies for capital investments that will assist thereof: Provided further, That funding pro- Directors shall take measures to ensure that in reducing the energy consumption or vided under this heading shall be in addition projects funded under this heading shall be greenhouse gas emissions of their public to any and all funds provided for fiscal years completed within 2 years of enactment of transportation systems: Provided further, 2008 and 2009 in any other Act for ‘‘Federal- this Act, and shall serve to supplement and That for such grants on energy-related in- aid Highways’’ and shall not affect the dis- not supplant planned expenditures for such vestments, priority shall be given to projects tribution of funds provided for ‘‘Federal-aid activities from other Federal, State, local based on the total energy savings that are Highways’’ in any other Act: Provided fur- and corporate sources: Provided further, That projected to result from the investment, and ther, That the amount made available under said Board of Directors shall certify to the projected energy savings as a percentage of this heading shall not be subject to any limi- House and Senate Committees on Appropria- the total energy usage of the public transit tation on obligations for Federal-aid high- tions in writing their compliance with the agency: Provided further, That the Federal ways or highway safety construction pro- preceding proviso: Provided further, That sec- share of the costs for which any grant is grams set forth in any Act: Provided further, tion 24305(f) of title 49, United States Code, made under this heading shall be at the op- That projects conducted using funds pro- shall apply to funds provided under this tion of the recipient, and may be up to 100 vided under this heading must comply with heading: Provided further, That not more percent: Provided further, That the amount the requirements of subchapter IV of chapter than 50 percent of the funds provided under made available under this heading shall not 31 of title 40, United States Code: Provided this heading may be used for capital projects be subject to any limitation on obligations further, That section 313 of title 23, United along the Northeast Corridor. for transit programs set forth in any Act: States Code, shall apply to funds provided Provided further, That section 1101(b) of Pub- HIGH-SPEED RAIL CORRIDOR PROGRAM under this heading: Provided further, That lic Law 109–59 shall apply to funds appor- section 1101(b) of Public Law 109–59 shall To make grants for high-speed rail projects tioned under this heading: Provided further, apply to funds apportioned under this head- under the provisions of section 26106 of title That the funds appropriated under this head- ing: Provided further, That for the purposes of 49, United States Code, $2,000,000,000, to re- ing shall be subject to subsection 5323(j) and the definition of States for this paragraph, main available until September 30, 2011: Pro- section 5333 of title 49, United States Code as sections 101(a)(32) of title 23, United States vided, That the Federal share payable of the well as sections 5304 and 5305 of said title, as Code, shall apply: Provided further, That the costs for which a grant is made under this appropriate, but shall not be comingled with Administrator of the Federal Highway Ad- heading shall be 100 percent: Provided further, funds available under the Formula and Bus ministration may retain up to $12,000,000 of That the Administrator of the Federal Rail- Grants account: Provided further, That the the funds provided under this heading to road Administration may retain and transfer Administrator of the Federal Transit Admin- carry out the function of the ‘‘Federal High- to ‘‘Federal Railroad Administration, Safety istration may retain up to $3,000,000 of the way Administration, Limitation on Adminis- and Operations’’ up to one-quarter of 1 per- funds provided under this heading to carry trative Expenses’’ and to fund the oversight cent of the funds provided under this heading out the function of ‘‘Federal Transit Admin- by the Administrator of projects and activi- to fund the award and oversight by the Ad- istration, Administrative Expenses’’ and to ties carried out with funds made available to ministrator of grants made under this para- fund the oversight of grants made under this the Federal Highway Administration in this graph. heading by the Administrator. Act. FEDERAL TRANSIT ADMINISTRATION MARITIME ADMINISTRATION FEDERAL RAILROAD ADMINISTRATION SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SUPPLEMENTAL GRANTS TO STATES FOR INVESTMENT SMALL SHIPYARDS INTERCITY PASSENGER RAIL SERVICE For an additional amount for capital ex- To make grants to qualified shipyards as For an additional amount for discretionary penditures authorized under section authorized under section 3506 of Public Law grants to States to pay for the cost of 5302(a)(1) of title 49, United States Code, 109–163 or section 54101 of title 46, United projects described in paragraphs (2)(A) and $8,400,000,000: Provided, That the Secretary of States Code, $100,000,000: Provided, That the (2)(B) of section 24401 of title 49, United Transportation shall apportion 71 percent of Secretary of Transportation shall institute States Code, and subsection (b) of section the funds apportioned under this heading measures to ensure that funds provided 24105 of such title, $250,000,000: Provided, That using the formula set forth in subsections (a) under this heading shall be obligated within to be eligible for assistance under this para- through (c) of section 5336 of title 49, United 180 days of the date of their distribution: graph, the specific project must be on a States Code, 19 percent of the funds appor- Provided further, That the Maritime Adminis- Statewide Transportation Improvement Plan tioned under this heading using the formula trator may retain and transfer to ‘‘Maritime at the time of the application to qualify: Pro- set forth in section 5340 of such title, and 10 Administration, Operations and Training’’ vided further, That the Secretary of Trans- percent of the funding apportioned under up to 2 percent of the funds provided under portation shall give priority to projects that this heading using the formula set forth in this heading to fund the award and oversight demonstrate an ability to be completed with- subsection 5311(c) of such title: Provided fur- by the Administrator of grants made under in 2 years of enactment of this Act, and to ther, That 180 days following the date of such this heading. projects that improve the safety and reli- apportionment, the Secretary shall withdraw ability of intercity passenger trains: Provided from each grantee an amount equal to 50 per- OFFICE OF INSPECTOR GENERAL further, That the Federal share payable of cent of the funds awarded to that grantee SALARIES AND EXPENSES the costs for which a grant is made under less the amount of funding obligated, and the For an additional amount for necessary ex- this heading shall be 100 percent: Provided Secretary shall redistribute such amounts to penses of the Office of Inspector General to further, That projects conducted using funds other grantees that have had no funds with- carry out the provisions of the Inspector

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00052 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.039 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1155 General Act of 1978, as amended, $7,750,000, to ministers in connection with the obligation requirement or the 2-year expenditure re- remain available until September 30, 2011: by the Secretary or the use by the recipient quirement, the Secretary shall recapture all Provided, That the funding made available of these funds except for requirements im- remaining funds awarded to the public hous- under this heading shall be used for con- posed by this heading and requirements re- ing agency and reallocate such funds to ducting audits and investigations of projects lated to fair housing, nondiscrimination, agencies that are in compliance with those and activities carried out with funds made labor standards, and the environment, upon requirements: Provided further, That if a pub- available in this Act to the Department of a finding that such waiver is required to fa- lic housing agency fails to comply with the Transportation and to the National Railroad cilitate the timely use of such funds and 3-year expenditure requirement, the Sec- Passenger Corporation: Provided further, would not be inconsistent with the overall retary shall recapture the balance of the That the Inspector General shall have all purpose of the statute or regulation: Provided funds awarded to the public housing agency: necessary authority, in carrying out the du- further, That, of the funds made available Provided further, That in administering funds ties specified in the Inspector General Act, under this heading, up to 1 percent shall be provided in this heading, the Secretary may as amended (5 U.S.C. App. 3), to investigate available for staffing, training, technical as- waive any provision of any statute or regula- allegations of fraud, including false state- sistance, technology, monitoring, research tion that the Secretary administers in con- ments to the Government (18 U.S.C. 1001), by and evaluation activities: Provided further, nection with the obligation by the Secretary any person or entity that is subject to regu- That any funds made available under this or the use by the recipient of these funds ex- lation by the Department. heading used by the Secretary for personnel cept for requirements imposed by this head- GENERAL PROVISION—DEPARTMENT OF expenses shall be transferred to and merged ing and requirements related to conditions TRANSPORTATION with funding provided to ‘‘Personnel Com- on use of funds for development and mod- pensation and Benefits, Office of Public and ernization, fair housing, non-discrimination, SEC. 1201. Section 5309(g)(4)(A) of title 49, Indian Housing’’: Provided further, That any labor standards, and the environment, upon United States Code, is amended by striking funds made available under this heading used a finding that such waiver is required to fa- ‘‘or an amount equivalent to the last 3 fiscal by the Secretary for training or other ad- cilitate the timely use of such funds and years of funding allocated under subsections ministrative expenses shall be transferred to would not be inconsistent with the overall (m)(1)(A) and (m)(2)(A)(ii)’’ and inserting ‘‘or and merged with funding provided to ‘‘Ad- purpose of the statute or regulation: Provided the sum of the funds available for the next 3 ministration, Operations, and Management’’, further, That of the funds made available fiscal years beyond the current fiscal year, for non-personnel expenses of the Depart- under this heading, up to 1 percent shall be assuming an annual growth of the program ment of Housing and Urban Development: available for staffing, training, technical as- of 10 percent’’. Provided further, That any funds made avail- sistance, technology, monitoring, research DEPARTMENT OF HOUSING AND URBAN able under this heading used by the Sec- and evaluation activities: Provided further, DEVELOPMENT retary for technology shall be transferred to That any funds made available under this NATIVE AMERICAN HOUSING BLOCK GRANTS and merged with the funding provided to heading used by the Secretary for personnel For an additional amount for ‘‘Native ‘‘Working Capital Fund’’. expenses shall be transferred to and merged American Housing Block Grants’’, as author- PUBLIC HOUSING CAPITAL FUND with funding provided to ‘‘Personnel Com- ized under title I of the Native American For an additional amount for the ‘‘Public pensation and Benefits, Office of Public and Housing Assistance and Self-Determination Housing Capital Fund’’ to carry out capital Indian Housing’’: Provided further, That any Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et and management activities for public hous- funds made available under this heading used seq.), $510,000,000, to remain available until ing agencies, as authorized under section 9 of by the Secretary for training or other ad- September 30, 2011: Provided, That $255,000,000 the United States Housing Act of 1937 (42 ministrative expenses shall be transferred to of the amount provided under this heading U.S.C. 1437g) (the ‘‘Act’’), $5,000,000,000, to re- and merged with funding provided to ‘‘Ad- shall be distributed according to the same main available until September 30, 2011: Pro- ministration, Operations, and Management’’, funding formula used in fiscal year 2008: Pro- vided, That the Secretary of Housing and for non-personnel expenses of the Depart- vided further, That in selecting projects to be Urban Development shall allocate ment of Housing and Urban Development: funded, recipients shall give priority to $3,000,000,000 of this amount by the formula Provided further, That any funds made avail- projects that can award contracts based on authorized under section 9(d)(2) of the Act, able under this heading used by the Sec- bids within 180 days from the date that funds except that the Secretary may determine retary for technology shall be transferred to are available to recipients: Provided further, not to allocate funding to public housing and merged with the funding provided to That the Secretary shall obligate $255,000,000 agencies currently designated as troubled or ‘‘Working Capital Fund’’. of the amount provided under this heading to public housing agencies that elect not to NEIGHBORHOOD STABILIZATION PROGRAM for competitive grants to eligible entities accept such funding: Provided further, That For the provision of emergency assistance that apply for funds authorized under the Secretary shall make available for the redevelopment of abandoned and fore- NAHASDA: Provided further, That in award- $2,000,000,000 by competition for priority in- closed homes, as authorized by title III of di- ing competitive funds, the Secretary shall vestments, including investments that lever- vision B of the Housing and Economic Recov- give priority to projects that will spur con- age private sector funding or financing for ery Act of 2008 (the ‘‘Act’’) (42 U.S.C. 5301 struction and rehabilitation and will create renovations and energy conservation retrofit note), $2,250,000,000, to remain available until employment opportunities for low-income investments: Provided further, That public September 30, 2011: Provided, That funding and unemployed persons: Provided further, housing agencies shall prioritize capital shall be allocated by a competition for which That recipients of funds under this heading projects that are already underway or in- eligible entities shall be States, units of gen- shall obligate 100 percent of such funds with- cluded in the 5-year capital fund plans re- eral local government, and nonprofit entities in 1 year of the date of enactment of this quired by the Act (42 U.S.C. 1437c–1(a)): Pro- or consortia of nonprofit entities, which may Act, expend at least 50 percent of such funds vided further, That in allocating competitive submit proposals in partnership with for- within 2 years of the date on which funds be- grants under this heading, the Secretary profit entities: Provided further, That in se- come available to such jurisdictions for obli- shall give priority consideration to the reha- lecting grantees the Secretary shall ensure gation, and expend 100 percent of such funds bilitation of vacant rental units: Provided that the grantee can expend funding within within 3 years of such date: Provided further, further, That notwithstanding any other pro- the period allowed under this heading: Pro- That if a recipient fails to comply with ei- vision of law, (1) funding provided herein vided further, That additional award criteria ther the 1-year obligation requirement or the may not be used for operating or rental as- for such competition shall include dem- 2-year expenditure requirement, the Sec- sistance activities, and (2) any restriction of onstrated grantee capacity to execute retary shall recapture all remaining funds funding to replacement housing uses shall be projects, leveraging potential, targeted im- awarded to the recipient and reallocate such inapplicable: Provided further, That notwith- pact of foreclosure prevention, neighborhood funds to recipients that are in compliance standing any other provision of law, the Sec- stabilization, and any additional factors de- with those requirements: Provided further, retary shall institute measures to ensure termined by the Secretary of Housing and That if a recipient fails to comply with the that funds provided under this heading shall Urban Development: Provided further, That 3-year expenditure requirement, the Sec- serve to supplement and not supplant ex- the Secretary may establish a minimum retary shall recapture the balance of the penditures from other Federal, State, or grant size: Provided further, That the Sec- funds awarded to the recipient: Provided fur- local sources or funds independently gen- retary shall publish criteria on which to base ther, That, notwithstanding any other provi- erated by the grantee: Provided further, That the competition for any grants awarded sion of this paragraph, the Secretary may in- notwithstanding section 9(j), public housing under this heading not later than 75 days stitute measures to ensure participation in agencies shall obligate 100 percent of the after the enactment of this Act and applica- the formula and competitive allocation of funds within 1 year of the date of enactment tions shall be due not later than 180 days funds provided under this paragraph by any of this Act, shall expend at least 60 percent after the enactment of this Act: Provided fur- housing entity eligible to receive funding of funds within 2 years of the date on which ther, That the Secretary shall award all under title VIII of NAHASDA (25 U.S.C. 4221 funds become available to the agency for ob- funding within 1 year of enactment of this et seq.): Provided further, That in admin- ligation, and shall expend 100 percent of the Act: Provided further, That grantees shall ex- istering funds provided in this heading, the funds within 3 years of such date: Provided pend at least 75 percent of allocated funds Secretary may waive any provision of any further, That if a public housing agency fails within 2 years of the date funds become statute or regulation that the Secretary ad- to comply with either the 1-year obligation available to the grantees for obligation and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00053 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.040 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1156 CONGRESSIONAL RECORD — SENATE January 30, 2009 100 percent of such funds within 3 years of of these funds except for requirements im- essary to carry out the provisions of this sec- such date: Provided further, That funding posed by this heading and requirements re- tion within 30 days of enactment of the Act used for section 2301(c)(3)(E) of the Act shall lated to fair housing, non-discrimination, and that this notice shall take effect upon be available only for the redevelopment of labor standards and the environment, upon a issuance: Provided further, That of the funds demolished or vacant properties as housing: finding that such waiver is required to facili- provided under this heading, up to 1.5 per- Provided further, That in addition to the eli- tate the timely use of such funds and would cent shall be available for staffing, training, gible uses in section 2301, the Secretary may not be inconsistent with the overall purpose technical assistance, technology, moni- also use up to 10 percent of the funds pro- of the statute or regulation: Provided further, toring, research and evaluation activities: vided under this heading for grantees for the That the Secretary may use funds provided Provided further, That any funds made avail- provision of capacity building of and support under this heading to provide incentives to able under this heading used by the Sec- for local communities receiving funding grantees to use funding for investments in retary for personnel expense shall be trans- under section 2301 of the Act or under this energy efficiency and green building tech- ferred to and merged with funding provided heading: Provided further, That the construc- nology: Provided further, That such incen- to ‘‘Community Planning and Development tion or rehabilitation of early childhood and tives may include allocation of up to 20 per- Personnel Compensation and Benefits’’: Pro- development centers serving households that cent of funds made available under this head- vided further, That any funds made available qualify as low income shall also be an eligi- ing other than pursuant to the formula au- under this heading used by the Secretary for ble use of funding: Provided further, That in thorized by section 217 of the Act: Provided training or other administrative expenses addition to the allowable uses of revenues further, That, of the funds made available shall be transferred to and merged with fund- provided in section 2301 of the Act, any reve- under this heading, up to 1 percent shall be ing provided to ‘‘Administration, Operations, nues generated in the first 5 years using the available for staffing, training, technical as- and Management’’ for non-personnel ex- penses of the Department of Housing and funds provided under this heading may be sistance, technology, monitoring, research Urban Development: Provided further, That used by the State or applicable unit of gen- and evaluation activities: Provided further, any funding made available under this head- eral local government for maintenance asso- That any funds made available under this ing used by the Secretary for technology ciated with property acquisition and holding heading used by the Secretary for personnel shall be transferred to and merged with the and with land banking activities: Provided expenses shall be transferred to and merged funding provided to ‘‘Working Capital further, That of the funds provided under this with funding provided to ‘‘Personnel Com- Fund.’’ heading, up to 1.5 percent shall be available pensation and Benefits, Office of Community ASSISTED HOUSING STABILITY AND ENERGY for staffing, training, technical assistance, Planning and Development’’: Provided fur- AND GREEN RETROFIT INVESTMENTS technology, monitoring, research and eval- ther, That any funds made available under uation activities: Provided further, That any this heading used by the Secretary for train- For assistance to owners of properties re- funds made available under this heading used ing or other administrative expenses shall be ceiving project-based assistance pursuant to by the Secretary for personnel expense shall transferred to and merged with funding pro- section 202 of the Housing Act of 1959 (12 be transferred to and merged with funding vided to ‘‘Administration, Operations, and U.S.C. 17012), section 811 of the Cranston- provided to ‘‘Community Planning and De- Management’’, for non-personnel expenses of Gonzalez National Affordable Housing Act velopment Personnel Compensation and Ben- the Department of Housing and Urban Devel- (42 U.S.C. 8013), or section 8 of the United States Housing Act of 1937 as amended (42 efits’’: Provided further, That any funds made opment: Provided further, That any funds U.S.C. 1437f), $3,500,000,000, of which available under this heading used by the Sec- made available under this heading used by $2,132,000,000 shall be for an additional retary for training or other administrative the Secretary for technology shall be trans- amount for paragraph (1) under the heading expenses shall be transferred to and merged ferred to and merged with the funding pro- ‘‘Project-Based Rental Assistance’’ in Public with funding provided to ‘‘Administration, vided to ‘‘Working Capital Fund’’. Law 110–161 for payments to owners for 12- Operations, and Management’’ for non-per- HOMELESSNESS PREVENTION FUND month periods, and of which $1,368,000,000 sonnel expenses of the Department of Hous- For homelessness prevention activities, shall be for grants or loans for energy ret- ing and Urban Development: Provided further, $1,500,000,000, to remain available until Sep- rofit and green investments in such assisted That any funding made available under this tember 30, 2011: Provided, That funds pro- housing: Provided, That projects funded with heading used by the Secretary for tech- vided under this heading shall be used for the grants or loans provided under this heading nology shall be transferred to and merged provision of short-term or medium-term must comply with the requirements of sub- with the funding provided to ‘‘Working Cap- rental assistance; housing relocation and chapter IV of chapter 31 of title 40, United ital Fund.’’ stabilization services including housing States Code: Provided further, That such HOME INVESTMENT PARTNERSHIPS PROGRAM search, mediation or outreach to property grants or loans shall be provided through the For an additional amount for the ‘‘HOME owners, credit repair, security or utility de- existing policies, procedures, contracts, and Investment Partnerships Program’’ as au- posits, utility payments, rental assistance transactional infrastructure of the author- thorized under title II of the Cranston-Gon- for a final month at a location, and moving ized programs administered by the Office of zalez National Affordable Housing Act (the cost assistance; or other appropriate home- Affordable Housing Preservation of the De- ‘‘Act’’), $2,250,000,000, to remain available lessness prevention activities: Provided fur- partment of Housing and Urban Develop- until September 30, 2011: Provided, That ex- ther, That grantees receiving such assistance ment, on such terms and conditions as the cept as specifically provided herein, funds shall collect data on the use of the funds Secretary of Housing and Urban Develop- provided under this heading shall be distrib- awarded and persons served with this assist- ment deems appropriate to ensure the main- uted pursuant to the formula authorized by ance in the Homeless Management Informa- tenance and preservation of the property, section 217 of the Act: Provided further, That tion System (HMIS) or other comparable the continued operation and maintenance of the Secretary may establish a minimum database: Provided further, That grantees energy efficiency technologies, and the time- grant size: Provided further, That partici- may use up to 5 percent of any grant for ad- ly expenditure of funds: Provided further, pating jurisdictions shall obligate 100 per- ministrative costs: Provided further, That That the Secretary may provide incentives to owners to undertake energy or green ret- cent of the funds within 1 year of the date of funding made available under this heading rofits as a part of such grant or loan terms, enactment of this Act, shall expend at least shall be allocated to eligible grantees (as de- including, but not limited to, investment 60 percent of funds within 2 years of the date fined and designated in sections 411 and 412 fees to cover oversight and implementation on which funds become available to the par- of subtitle B of title IV of the McKinney- costs incurred by said owner, or to encourage ticipating jurisdiction for obligation and Vento Homeless Assistance Act, (the ‘‘Act’’)) job creation for low-income or very low-in- shall expend 100 percent of the funds within pursuant to the formula authorized by sec- come individuals: Provided further, That the 3 years of such date: Provided further, That if tion 413 of the Act: Provided further, That the grants or loans shall include a financial as- a participating jurisdiction fails to comply Secretary may establish a minimum grant sessment and physical inspection of such with either the 1-year obligation require- size: Provided further, That grantees shall ex- property: Provided further, That eligible own- ment or the 2-year expenditure requirement, pend at least 75 percent of funds within 2 ers must have at least a satisfactory man- the Secretary shall recapture all remaining years of the date that funds became avail- agement review rating, be in substantial funds awarded to the participating jurisdic- able to them for obligation, and 100 percent compliance with applicable performance tion and reallocate such funds to partici- of funds within 3 years of such date, and the standards and legal requirements, and com- pating jurisdictions that are in compliance Secretary may recapture unexpended funds mit to an additional period of affordability with those requirements: Provided further, in violation of the 2-year expenditure re- determined by the Secretary, but of not That if a participating jurisdiction fails to quirement and reallocate such funds to fewer than 15 years: Provided further, That comply with the 3-year expenditure require- grantees in compliance with that require- the Secretary shall undertake appropriate ment, the Secretary shall recapture the bal- ment: Provided further, That the Secretary underwriting and oversight with respect to ance of the funds awarded to the partici- may waive statutory or regulatory provi- grant and loan transactions and may set pating jurisdiction: Provided further, That in sions (except provisions for fair housing, aside up to 5 percent of the funds made avail- administering funds under this heading, the nondiscrimination, labor standards, and the able under this heading for grants or loans Secretary may waive any provision of any environment) necessary to facilitate the for such purpose: Provided further, That the statute or regulation that the Secretary ad- timely expenditure of funds: Provided further, Secretary shall take steps necessary to en- ministers in connection with the obligation That the Secretary shall publish a notice to sure that owners receiving funding for en- by the Secretary or the use by the recipient establish such requirements as may be nec- ergy and green retrofit investments under

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00054 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.040 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1157 this heading shall expend such funding with- labor standards, and the environment, upon physician (as defined in section 1861(r) of the in 2 years of the date they received the fund- a finding that such waiver is required to fa- Social Security Act), a practitioner (as de- ing: Provided further, That the Secretary may cilitate the timely use of such funds and scribed in section 1842(b)(18)(C) of the Social waive or modify statutory or regulatory re- would not be inconsistent with the overall Security Act), a provider operated by, or quirements with respect to any existing purpose of the statute or regulation: Provided under contract with, the Indian Health Serv- grant, loan, or insurance mechanism author- further, That, of the funds made available ice or by an Indian tribe (as defined in the ized to be used by the Secretary to enable or under this heading, up to 1 percent shall be Indian Self-Determination and Education facilitate the accomplishment of invest- available for staffing, training, technical as- Assistance Act), tribal organization, or ments supported with funds made available sistance, technology, monitoring, research urban Indian organization (as defined in sec- under this heading for grants or loans: Pro- and evaluation activities: Provided further, tion 4 of the Indian Health Care Improve- vided further, That of the funds provided That any funds made available under this ment Act), a rural health clinic, a covered under this heading, up to 1.5 percent shall be heading used by the Secretary for personnel entity under section 340B, and any other cat- available for staffing, training, technical as- expenses shall be transferred to and merged egory of facility or clinician determined ap- sistance, technology, monitoring, research with funding provided to ‘‘Personnel Com- propriate by the Secretary. and evaluation activities: Provided further, pensation and Benefits, Office of Healthy ‘‘(4) HEALTH INFORMATION.—The term That funding made available under this Homes and Lead Hazard Control’’: Provided ‘health information’ has the meaning given heading and used by the Secretary for per- further, That any funds made available under such term in section 1171(4) of the Social Se- sonnel expenses shall be transferred to and this heading used by the Secretary for train- curity Act. merged with funding provided to ‘‘Housing ing or other administrative expenses shall be ‘‘(5) HEALTH INFORMATION TECHNOLOGY.— Compensation and Benefits’’: Provided fur- transferred to and merged with funding pro- The term ‘health information technology’ ther, That any funding made available under vided to ‘‘Administration, Operations, and means hardware, software, integrated tech- this heading used by the Secretary for train- Management’’, for non-personnel expenses of nologies and related licenses, intellectual ing and other administrative expenses shall the Department of Housing and Urban Devel- property, upgrades, and packaged solutions be transferred to and merged with funding opment: Provided further, That any funds sold as services for use by health care enti- provided to ‘‘Administration, Operations and made available under this heading used by ties for the electronic creation, mainte- Management’’ for non-personnel expenses of the Secretary for technology shall be trans- nance, or exchange of health information. the Department of Housing and Urban Devel- ferred to and merged with the funding pro- ‘‘(6) HEALTH PLAN.—The term ‘health plan’ opment: Provided further, That any funding vided to ‘‘Working Capital Fund’’. has the meaning given such term in section made available under this heading used by OFFICE OF INSPECTOR GENERAL 1171(5) of the Social Security Act. the Secretary for technology shall be trans- ‘‘(7) HIT POLICY COMMITTEE.—The term For an additional amount for the nec- ferred to and merged with funding provided ‘HIT Policy Committee’ means such Com- essary salaries and expenses of the Office of to ‘‘Working Capital Fund.’’ mittee established under section 3002(a). Inspector General in carrying out the Inspec- ‘‘(8) HIT STANDARDS COMMITTEE.—The term OFFICE OF HEALTHY HOMES AND LEAD HAZARD tor General Act of 1978, as amended, ‘HIT Standards Committee’ means such CONTROL $2,750,000, to remain available until Sep- Committee established under section 3003(a). For an additional amount for the ‘‘Lead tember 30, 2011: Provided, That the Inspector ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN- Hazard Reduction’’, as authorized by section General shall have independent authority FORMATION.—The term ‘individually identifi- 1011 of the Residential Lead-Based Paint over all personnel issues within this office. Hazard Reduction Act of 1992, $100,000,000, to able health information’ has the meaning TITLE XIII—HEALTH INFORMATION remain available until September 30, 2011: given such term in section 1171(6) of the So- TECHNOLOGY Provided, That funds shall be awarded first to cial Security Act. applicant jurisdictions which had applied SEC. 1301. SHORT TITLE. ‘‘(10) LABORATORY.—The term ‘laboratory’ under the Lead-Based Paint Hazard Control This title may be cited as the ‘‘Health In- has the meaning given such term in section Grant Program Notice of Funding Avail- formation Technology for Economic and 353(a). ability for fiscal year 2008, and were found in Clinical Health Act’’ or the ‘‘HITECH Act’’. ‘‘(11) NATIONAL COORDINATOR.—The term the application review to be qualified for Subtitle A—Promotion of Health Information ‘National Coordinator’ means the head of the award, but were not awarded because of Technology Office of the National Coordinator for Health Information Technology established under funding limitations, and that any funds PART I—IMPROVING HEALTH CARE section 3001(a). which remain after reservation of funds for QUALITY, SAFETY, AND EFFICIENCY such grants shall be added to the amount of ‘‘(12) PHARMACIST.—The term ‘pharmacist’ SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT funds to be awarded under the Lead-Based has the meaning given such term in section AND ADOPTION. 804(2) of the Federal Food, Drug, and Cos- Paint Hazard Control Grant Program Notice The Public Health Service Act (42 U.S.C. of Funding Availability for fiscal year 2009: metic Act. 201 et seq.) is amended by adding at the end ‘‘(13) QUALIFIED ELECTRONIC HEALTH Provided further, That each applicant juris- the following: diction for the Lead-Based Paint Hazard con- RECORD.—The term ‘qualified electronic trol Grant Program Notice of Funding Avail- ‘‘TITLE XXX—HEALTH INFORMATION health record’ means an electronic record of ability for fiscal year 2009 shall submit a de- TECHNOLOGY AND QUALITY health-related information on an individual tailed plan and strategy that demonstrates ‘‘SEC. 3000. DEFINITIONS. that— adequate capacity that is acceptable to the ‘‘In this title: ‘‘(A) includes patient demographic and Secretary to carry out the proposed use of ‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term clinical health information, such as medical funds: Provided further, That recipients of ‘certified EHR technology’ means a qualified history and problem lists; and funds under this heading shall obligate 100 electronic health record and that is certified ‘‘(B) has the capacity— percent of such funds within 1 year of the pursuant to section 3001(c)(5) as meeting ‘‘(i) to provide clinical decision support; date of enactment of this Act, expend at standards adopted under section 3004 that ‘‘(ii) to support physician order entry; least 75 percent of such funds within 2 years are applicable to the type of record involved ‘‘(iii) to capture and query information rel- of the date on which funds become available (as determined by the Secretary, such as an evant to health care quality; and to such jurisdictions for obligation, and ex- ambulatory electronic health record for of- ‘‘(iv) to exchange electronic health infor- pend 100 percent of such funds within 3 years fice-based physicians or an inpatient hos- mation with, and integrate such information of such date: Provided further, That if a re- pital electronic health record for hospitals). from other sources. cipient fails to comply with either the 1-year ‘‘(2) ENTERPRISE INTEGRATION.—The term ‘‘(14) STATE.—The term ‘State’ means each obligation requirement or the 2-year expend- ‘enterprise integration’ means the electronic of the several States, the District of Colum- iture requirement, the Secretary shall recap- linkage of health care providers, health bia, Puerto Rico, the Virgin Islands, Guam, ture all remaining funds awarded to the re- plans, the government, and other interested American Samoa, and the Northern Mariana cipient and reallocate such funds to recipi- parties, to enable the electronic exchange Islands. ents that are in compliance with those re- and use of health information among all the ‘‘Subtitle A—Promotion of Health quirements: Provided further, That if a recipi- components in the health care infrastructure Information Technology ent fails to comply with the 3-year expendi- in accordance with applicable law, and such ‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDI- ture requirement, the Secretary shall recap- term includes related application protocols NATOR FOR HEALTH INFORMATION ture the balance of the funds awarded to the and other related standards. TECHNOLOGY. recipient: Provided further, That in admin- ‘‘(3) HEALTH CARE PROVIDER.—The term ‘‘(a) ESTABLISHMENT.—There is established istering funds provided in this heading, the ‘health care provider’ means a hospital, within the Department of Health and Human Secretary may waive any provision of any skilled nursing facility, nursing facility, Services an Office of the National Coordi- statute or regulation that the Secretary ad- home health entity, or other long-term care nator for Health Information Technology ministers in connection with the obligation facility, health care clinic, emergency med- (referred to in this section as the ‘Office’). by the Secretary or the use by the recipient ical services provider, Federally qualified The Office shall be headed by a National Co- of these funds except for requirements im- health center, group practice (as defined in ordinator who shall be appointed by the Sec- posed by this heading and requirements re- section 1877(h)(4) of the Social Security Act), retary and shall report directly to the Sec- lated to fair housing, nondiscrimination, a pharmacist, a pharmacy, a laboratory, a retary.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00055 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.040 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1158 CONGRESSIONAL RECORD — SENATE January 30, 2009

‘‘(b) PURPOSE.—The National Coordinator ‘‘(i) The electronic exchange and use of mentation specifications, and certification shall perform the duties under subsection (c) health information and the enterprise inte- criteria, or to achieve full participation of in a manner consistent with the development gration of such information. stakeholders in the adoption of a nationwide of a nationwide health information tech- ‘‘(ii) The utilization of an electronic health health information technology infrastruc- nology infrastructure that allows for the record for each person in the United States ture that allows for the electronic use and electronic use and exchange of information by 2014. exchange of health information. and that— ‘‘(iii) The incorporation of privacy and se- ‘‘(B) IMPLEMENTATION REPORT.—The Na- ‘‘(1) ensures that each patient’s health in- curity protections for the electronic ex- tional Coordinator shall prepare a report formation is secure and protected, in accord- change of an individual’s individually identi- that identifies lessons learned from major ance with applicable law; fiable health information. public and private health care systems in ‘‘(2) improves health care quality, reduces ‘‘(iv) Ensuring security methods to ensure their implementation of health information medical errors, and advances the delivery of appropriate authorization and electronic au- technology, including information on wheth- patient-centered medical care; thentication of health information and er the technologies and practices developed ‘‘(3) reduces health care costs resulting specifying technologies or methodologies for by such systems may be applicable to and us- from inefficiency, medical errors, inappro- rendering health information unusable, able in whole or in part by other health care priate care, duplicative care, and incomplete unreadable, or indecipherable. providers. ‘‘(v) Specifying a framework for coordina- information; ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON COM- tion and flow of recommendations and poli- ‘‘(4) provides appropriate information to MUNITIES WITH HEALTH DISPARITIES AND UNIN- cies under this subtitle among the Secretary, help guide medical decisions at the time and SURED, UNDERINSURED, AND MEDICALLY UN- the National Coordinator, the HIT Policy place of care; DERSERVED AREAS.—The National Coordi- Committee, the HIT Standards Committee, ‘‘(5) ensures the inclusion of meaningful nator shall assess and publish the impact of and other health information exchanges and public input in such development of such in- health information technology in commu- other relevant entities. frastructure; nities with health disparities and in areas ‘‘(vi) Methods to foster the public under- ‘‘(6) improves the coordination of care and with a high proportion of individuals who are information among hospitals, laboratories, standing of health information technology. ‘‘(vii) Strategies to enhance the use of uninsured, underinsured, and medically un- physician offices, and other entities through derserved individuals (including urban and an effective infrastructure for the secure and health information technology in improving the quality of health care, reducing medical rural areas) and identify practices to in- authorized exchange of health care informa- crease the adoption of such technology by tion; errors, reducing health disparities, improv- ing public health, increasing prevention and health care providers in such communities, ‘‘(7) improves public health activities and and the use of health information technology facilitates the early identification and rapid coordination with community resources, and improving the continuity of care among to reduce and better manage chronic dis- response to public health threats and emer- eases. gencies, including bioterror events and infec- health care settings. ‘‘(viii) Specific plans for ensuring that pop- ‘‘(D) EVALUATION OF BENEFITS AND COSTS OF tious disease outbreaks; THE ELECTRONIC USE AND EXCHANGE OF ‘‘(8) facilitates health and clinical research ulations with unique needs, such as children, are appropriately addressed in the tech- HEALTH INFORMATION.—The National Coordi- and health care quality; nology design, as appropriate, which may in- nator shall evaluate and publish evidence on ‘‘(9) promotes early detection, prevention, clude technology that automates enrollment the benefits and costs of the electronic use and management of chronic diseases; and retention for eligible individuals. and exchange of health information and as- ‘‘(10) promotes a more effective market- ‘‘(B) COLLABORATION.—The strategic plan sess to whom these benefits and costs accrue. place, greater competition, greater systems shall be updated through collaboration of ‘‘(E) RESOURCE REQUIREMENTS.—The Na- analysis, increased consumer choice, and im- public and private entities. tional Coordinator shall estimate and pub- proved outcomes in health care services; and ‘‘(C) MEASURABLE OUTCOME GOALS.—The lish resources required annually to reach the ‘‘(11) improves efforts to reduce health dis- strategic plan update shall include measur- goal of utilization of an electronic health parities. able outcome goals. record for each person in the United States ‘‘(c) DUTIES OF THE NATIONAL COORDI- ‘‘(D) PUBLICATION.—The National Coordi- by 2014, including the required level of Fed- NATOR.— nator shall republish the strategic plan, in- eral funding, expectations for regional, ‘‘(1) STANDARDS.—The National Coordi- cluding all updates. State, and private investment, and the ex- nator shall review and determine whether to ‘‘(4) WEBSITE.—The National Coordinator pected contributions by volunteers to activi- endorse each standard, implementation spec- shall maintain and frequently update an ties for the utilization of such records. ification, and certification criterion for the Internet website on which there is posted in- ‘‘(7) ASSISTANCE.—The National Coordi- electronic exchange and use of health infor- formation on the work, schedules, reports, nator may provide financial assistance to mation that is recommended by the HIT recommendations, and other information to consumer advocacy groups and not-for-profit Standards Committee under section 3003 for ensure transparency in promotion of a na- entities that work in the public interest for purposes of adoption under section 3004. The tionwide health information technology in- purposes of defraying the cost to such groups Coordinator shall make such determination, frastructure. and entities to participate under, whether in and report to the Secretary such determina- ‘‘(5) CERTIFICATION.— whole or in part, the National Technology tion, not later than 45 days after the date the ‘‘(A) IN GENERAL.—The National Coordi- Transfer Act of 1995 (15 U.S.C. 272 note). recommendation is received by the Coordi- nator, in consultation with the Director of ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH nator. the National Institute of Standards and INFORMATION NETWORK.—The National Coor- ‘‘(2) HIT POLICY COORDINATION.— Technology, shall develop a program (either dinator shall establish a governance mecha- ‘‘(A) IN GENERAL.—The National Coordi- directly or by contract) for the voluntary nism for the nationwide health information nator shall coordinate health information certification of health information tech- network. technology policy and programs of the De- nology as being in compliance with applica- ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— partment with those of other relevant execu- ble certification criteria adopted under this ‘‘(1) IN GENERAL.—Upon the request of the tive branch agencies with a goal of avoiding subtitle. Such program shall include testing National Coordinator, the head of any Fed- duplication of efforts and of helping to en- of the technology in accordance with section eral agency is authorized to detail, with or sure that each agency undertakes health in- 14201(b) of the Health Information Tech- without reimbursement from the Office, any formation technology activities primarily nology for Economic and Clinical Health of the personnel of such agency to the Office within the areas of its greatest expertise and Act. to assist it in carrying out its duties under technical capability and in a manner to- ‘‘(B) CERTIFICATION CRITERIA DESCRIBED.— this section. wards a coordinated national goal. In this title, the term ‘certification criteria’ ‘‘(2) EFFECT OF DETAIL.—Any detail of per- ‘‘(B) HIT POLICY AND STANDARDS COMMIT- means, with respect to standards and imple- sonnel under paragraph (1) shall— TEES.—The National Coordinator shall be a mentation specifications for health informa- ‘‘(A) not interrupt or otherwise affect the leading member in the establishment and op- tion technology, criteria to establish that civil service status or privileges of the Fed- erations of the HIT Policy Committee and the technology meets such standards and im- eral employee; and the HIT Standards Committee and shall plementation specifications. ‘‘(B) be in addition to any other staff of the serve as a liaison among those two Commit- ‘‘(6) REPORTS AND PUBLICATIONS.— Department employed by the National Coor- tees and the Federal Government. ‘‘(A) REPORT ON ADDITIONAL FUNDING OR AU- dinator. ‘‘(3) STRATEGIC PLAN.— THORITY NEEDED.—Not later than 12 months ‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith- ‘‘(A) IN GENERAL.—The National Coordi- after the date of the enactment of this title, standing any other provision of law, the Of- nator shall, in consultation with other ap- the National Coordinator shall submit to the fice may accept detailed personnel from propriate Federal agencies (including the appropriate committees of jurisdiction of the other Federal agencies without regard to National Institute of Standards and Tech- House of Representatives and the Senate a whether the agency described under para- nology), update the Federal Health IT Stra- report on any additional funding or author- graph (1) is reimbursed. tegic Plan (developed as of June 3, 2008) to ity the Coordinator or the HIT Policy Com- include specific objectives, milestones, and mittee or HIT Standards Committee requires ‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE metrics with respect to the following: to evaluate and develop standards, imple- OF THE NATIONAL COORDINATOR.—Not later

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00056 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.040 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1159 than 12 months after the date of the enact- ‘‘(v) The use of certified electronic health section 3004, consistent with the implemen- ment of this title, the Secretary shall ap- records to improve the quality of health tation of the strategic plan described in sec- point a Chief Privacy Officer of the Office of care, such as by promoting the coordination tion 3001(c)(3) and beginning with the areas the National Coordinator, whose duty it of health care and improving continuity of listed in section 3002(b)(2)(B) in accordance shall be to advise the National Coordinator health care among health care providers, by with policies developed by the HIT Policy on privacy, security, and data stewardship of reducing medical errors, by improving popu- Committee. electronic health information and to coordi- lation health, reducing chronic disease, and nate with other Federal agencies (and simi- by advancing research and education. ‘‘(b) DUTIES.— lar privacy officers in such agencies), with ‘‘(C) OTHER AREAS FOR CONSIDERATION.—In ‘‘(1) STANDARD DEVELOPMENT.— State and regional efforts, and with foreign making recommendations under subpara- ‘‘(A) IN GENERAL.—The HIT Standards countries with regard to the privacy, secu- graph (A), the HIT Policy Committee may Committee shall recommend to the National rity, and data stewardship of electronic indi- consider the following additional areas: Coordinator standards, implementation spec- vidually identifiable health information. ‘‘(i) The appropriate uses of a nationwide ifications, and certification criteria de- ‘‘SEC. 3002. HIT POLICY COMMITTEE. health information infrastructure, including scribed in subsection (a) that have been de- ‘‘(a) ESTABLISHMENT.—There is established for purposes of— veloped, harmonized, or recognized by the a HIT Policy Committee to make policy rec- ‘‘(I) the collection of quality data and pub- HIT Standards Committee. The HIT Stand- ommendations to the National Coordinator lic reporting; relating to the implementation of a nation- ards Committee shall update such rec- ‘‘(II) biosurveillance and public health; ommendations and make new recommenda- wide health information technology infra- ‘‘(III) medical and clinical research; and tions as appropriate, including in response to structure, including implementation of the ‘‘(IV) drug safety. a notification sent under section 3004(b)(2). strategic plan described in section 3001(c)(3). ‘‘(ii) Self-service technologies that facili- ‘‘(b) DUTIES.— Such recommendations shall be consistent tate the use and exchange of patient infor- ‘‘(1) RECOMMENDATIONS ON HEALTH INFORMA- with the latest recommendations made by mation and reduce wait times. TION TECHNOLOGY INFRASTRUCTURE.—The HIT ‘‘(iii) Telemedicine technologies, in order the HIT Policy Committee. Policy Committee shall recommend a policy to reduce travel requirements for patients in ‘‘(B) PILOT TESTING OF STANDARDS AND IM- framework for the development and adoption PLEMENTATION SPECIFICATIONS.—In the devel- of a nationwide health information tech- remote areas. ‘‘(iv) Technologies that facilitate home opment, harmonization, or recognition of nology infrastructure that permits the elec- standards and implementation specifica- tronic exchange and use of health informa- health care and the monitoring of patients recuperating at home. tions, the HIT Standards Committee shall, tion as is consistent with the strategic plan as appropriate, provide for the testing of under section 3001(c)(3) and that includes the ‘‘(v) Technologies that help reduce medical such standards and specifications by the Na- recommendations under paragraph (2). The errors. tional Institute for Standards and Tech- Committee shall update such recommenda- ‘‘(vi) Technologies that facilitate the con- tions and make new recommendations as ap- tinuity of care among health settings. nology under section 14201 of the Health In- propriate. ‘‘(vii) Technologies that meet the needs of formation Technology for Economic and ‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP- diverse populations. Clinical Health Act. MENT.— ‘‘(viii) Technologies and design features ‘‘(C) CONSISTENCY.—The standards, imple- ‘‘(A) IN GENERAL.—The HIT Policy Com- that address the needs of children and other mentation specifications, and certification mittee shall recommend the areas in which vulnerable populations. criteria recommended under this subsection standards, implementation specifications, ‘‘(ix) Any other technology that the HIT shall be consistent with the standards for in- and certification criteria are needed for the Policy Committee finds to be among the formation transactions and data elements electronic exchange and use of health infor- technologies with the greatest potential to adopted pursuant to section 1173 of the So- mation for purposes of adoption under sec- improve the quality and efficiency of health cial Security Act. tion 3004 and shall recommend an order of care. ‘‘(2) FORUM.—The HIT Standards Com- priority for the development, harmonization, ‘‘(3) FORUM.—The HIT Policy Committee mittee shall serve as a forum for the partici- and recognition of such standards, specifica- shall serve as a forum for broad stakeholder pation of a broad range of stakeholders to tions, and certification criteria among the input with specific expertise in policies re- provide input on the development, harmoni- lating to the matters described in para- areas so recommended. Such standards and zation, and recognition of standards, imple- graphs (1) and (2). implementation specifications shall include mentation specifications, and certification ‘‘(c) MEMBERSHIP AND OPERATIONS.— named standards, architectures, and soft- criteria necessary for the development and ware schemes for the authentication and se- ‘‘(1) IN GENERAL.—The National Coordi- nator shall provide leadership in the estab- adoption of a nationwide health information curity of individually identifiable health in- technology infrastructure that allows for the formation and other information as needed lishment and operations of the HIT Policy Committee. electronic use and exchange of health infor- to ensure the reproducible development of mation. common solutions across disparate entities. ‘‘(2) MEMBERSHIP.—The membership of the ‘‘(3) SCHEDULE.—Not later than 90 days ‘‘(B) AREAS REQUIRED FOR CONSIDERATION.— HIT Policy Committee shall at least reflect after the date of the enactment of this title, For purposes of subparagraph (A), the HIT providers, ancillary healthcare workers, con- the HIT Standards Committee shall develop Policy Committee shall make recommenda- sumers, purchasers, health plans, technology tions for at least the following areas: vendors, researchers, relevant Federal agen- a schedule for the assessment of policy rec- ‘‘(i) Technologies that protect the privacy cies, and individuals with technical expertise ommendations developed by the HIT Policy of health information and promote security on health care quality, privacy and security, Committee under section 3002. The HIT in a qualified electronic health record, in- and on the electronic exchange and use of Standards Committee shall update such cluding for the segmentation and protection health information. schedule annually. The Secretary shall pub- from disclosure of specific and sensitive indi- ‘‘(3) CONSIDERATION.—The National Coordi- lish such schedule in the Federal Register. vidually identifiable health information with nator shall ensure that the relevant rec- ‘‘(4) PUBLIC INPUT.—The HIT Standards the goal of minimizing the reluctance of pa- ommendations and comments from the Na- Committee shall conduct open public meet- tients to seek care (or disclose information tional Committee on Vital and Health Sta- ings and develop a process to allow for public about a condition) because of privacy con- tistics are considered in the development of comment on the schedule described in para- cerns, in accordance with applicable law, and policies. graph (3) and recommendations described in for the use and disclosure of limited data ‘‘(d) APPLICATION OF FACA.—The Federal this subsection. Under such process com- sets of such information. Advisory Committee Act (5 U.S.C. App.), ments shall be submitted in a timely manner ‘‘(ii) A nationwide health information other than section 14 of such Act, shall apply after the date of publication of a rec- technology infrastructure that allows for the to the HIT Policy Committee. ommendation under this subsection. electronic use and accurate exchange of ‘‘(e) PUBLICATION.—The Secretary shall ‘‘(c) MEMBERSHIP AND OPERATIONS.— health information. provide for publication in the Federal Reg- ‘‘(1) IN GENERAL.—The National Coordi- ‘‘(iii) The utilization of a certified elec- ister and the posting on the Internet website tronic health record for each person in the of the Office of the National Coordinator for nator shall provide leadership in the estab- United States by 2014. Health Information Technology of all policy lishment and operations of the HIT Stand- ‘‘(iv) Technologies that as a part of a quali- recommendations made by the HIT Policy ards Committee. fied electronic health record allow for an ac- Committee under this section. ‘‘(2) MEMBERSHIP.—The membership of the counting of disclosures made by a covered ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. HIT Standards Committee shall at least re- entity (as defined for purposes of regulations ‘‘(a) ESTABLISHMENT.—There is established flect providers, ancillary healthcare work- promulgated under section 264(c) of the a committee to be known as the HIT Stand- ers, consumers, purchasers, health plans, Health Insurance Portability and Account- ards Committee to recommend to the Na- technology vendors, researchers, relevant ability Act of 1996) for purposes of treat- tional Coordinator standards, implementa- Federal agencies, and individuals with tech- ment, payment, and health care operations tion specifications, and certification criteria nical expertise on health care quality, pri- (as such terms are defined for purposes of for the electronic exchange and use of health vacy and security, and on the electronic ex- such regulations). information for purposes of adoption under change and use of health information.

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‘‘(3) CONSIDERATION.—The National Coordi- dinator for Health Information Technology propriate, as of the date of the enactment of nator shall ensure that the relevant rec- may be applied towards meeting the require- this title. ommendations and comments from the Na- ment of paragraph (1). ‘‘(2) In carrying out section 3003(b)(1)(A), tional Committee on Vital and Health Sta- ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED until recommendations are made by the HIT tistics are considered in the development of STANDARDS AND IMPLEMENTATION Policy Committee, recommendations of the standards. SPECIFICATIONS BY FEDERAL AGEN- HIT Standards Committee shall be con- ‘‘(4) ASSISTANCE.—For the purposes of car- CIES. sistent with the most recent recommenda- rying out this section, the Secretary may ‘‘For requirements relating to the applica- tions made by such AHIC Successor, Inc. provide or ensure that financial assistance is tion and use by Federal agencies of the ‘‘(c) RULES OF CONSTRUCTION.— provided by the HIT Standards Committee to standards and implementation specifications ‘‘(1) ONCHIT.—Nothing in section 3001 or defray in whole or in part any membership adopted under section 3004, see section 13111 subsection (a) shall be construed as requiring fees or dues charged by such Committee to of the Health Information Technology for the creation of a new entity to the extent those consumer advocacy groups and not for Economic and Clinical Health Act. that the Office of the National Coordinator profit entities that work in the public inter- ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE for Health Information Technology estab- est as a part of their mission. OF ADOPTED STANDARDS AND IM- lished pursuant to Executive Order 13335 is PLEMENTATION SPECIFICATIONS BY ‘‘(d) APPLICATION OF FACA.—The Federal consistent with the provisions of section PRIVATE ENTITIES. Advisory Committee Act (5 U.S.C. App.), 3001. ‘‘(a) IN GENERAL.—Except as provided other than section 14, shall apply to the HIT ‘‘(2) AHIC.—Nothing in sections 3002 or 3003 under section 13112 of the Health Informa- Standards Committee. or subsection (b) shall be construed as pro- tion Technology for Economic and Clinical ‘‘(e) PUBLICATION.—The Secretary shall hibiting the AHIC Successor, Inc. doing busi- Health Act, any standard or implementation provide for publication in the Federal Reg- ness as the National eHealth Collaborative specification adopted under section 3004 shall ister and the posting on the Internet website from modifying its charter, duties, member- be voluntary with respect to private entities. of the Office of the National Coordinator for ship, and any other structure or function re- ‘‘(b) RULE OF CONSTRUCTION.—Nothing in Health Information Technology of all rec- this subtitle shall be construed to require quired to be consistent with section 3002 and ommendations made by the HIT Standards that a private entity that enters into a con- 3003 in a manner that would permit the Sec- Committee under this section. tract with the Federal Government apply or retary to choose to recognize such AHIC Suc- ‘‘SEC. 3004. PROCESS FOR ADOPTION OF EN- use the standards and implementation speci- cessor, Inc. as the HIT Policy Committee or DORSED RECOMMENDATIONS; the HIT Standards Committee. ADOPTION OF INITIAL SET OF fications adopted under section 3004 with re- ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND STANDARDS, IMPLEMENTATION spect to activities not related to the con- SECURITY LAW. SPECIFICATIONS, AND CERTIFI- tract. ‘‘(a) IN GENERAL.—With respect to the rela- CATION CRITERIA. ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED TECHNOLOGY. tion of this title to HIPAA privacy and secu- RECOMMENDATIONS.— ‘‘(a) IN GENERAL.—The National Coordi- rity law: ‘‘(1) REVIEW OF ENDORSED STANDARDS, IM- nator shall support the development, routine ‘‘(1) This title may not be construed as PLEMENTATION SPECIFICATIONS, AND CERTIFI- updating and provision of qualified EHR having any effect on the authorities of the CATION CRITERIA.—Not later than 90 days technology (as defined in section 3000) con- Secretary under HIPAA privacy and security after the date of receipt of standards, imple- sistent with subsections (b) and (c) unless law. mentation specifications, or certification the Secretary determines that the needs and ‘‘(2) The purposes of this title include en- criteria endorsed under section 3001(c), the demands of providers are being substantially suring that the health information tech- Secretary, in consultation with representa- and adequately met through the market- nology standards and implementation speci- tives of other relevant Federal agencies, place. fications adopted under section 3004 take shall jointly review such standards, imple- ‘‘(b) CERTIFICATION.—In making such EHR into account the requirements of HIPAA pri- mentation specifications, or certification technology publicly available, the National vacy and security law. criteria and shall determine whether or not Coordinator shall ensure that the qualified ‘‘(b) DEFINITION.—For purposes of this sec- to propose adoption of such standards, imple- EHR technology described in subsection (a) tion, the term ‘HIPAA privacy and security mentation specifications, or certification is certified under the program developed law’ means— criteria. under section 3001(c)(3) to be in compliance ‘‘(1) the provisions of part C of title XI of ‘‘(2) DETERMINATION TO ADOPT STANDARDS, with applicable standards adopted under sec- the Social Security Act, section 264 of the IMPLEMENTATION SPECIFICATIONS, AND CER- tion 3003(a). Health Insurance Portability and Account- TIFICATION CRITERIA.—If the Secretary deter- ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL ability Act of 1996, and subtitle D of the mines— FEE.—The National Coordinator may impose Health Information Technology for Eco- ‘‘(A) to propose adoption of any grouping a nominal fee for the adoption by a health nomic and Clinical Health Act; and of such standards, implementation specifica- care provider of the health information tech- ‘‘(2) regulations under such provisions.’’. tions, or certification criteria, the Secretary nology system developed or approved under SEC. 13102. TECHNICAL AMENDMENT. shall, by regulation, determine whether or subsection (a) and (b). Such fee shall take Section 1171(5) of the Social Security Act not to adopt such grouping of standards, im- into account the financial circumstances of (42 U.S.C. 1320d) is amended by striking ‘‘or plementation specifications, or certification smaller providers, low income providers, and C’’ and inserting ‘‘C, or D’’. criteria; or providers located in rural or other medically PART II—APPLICATION AND USE OF ‘‘(B) not to propose adoption of any group- underserved areas. ADOPTED HEALTH INFORMATION TECH- ing of standards, implementation specifica- ‘‘(d) RULE OF CONSTRUCTION.—Nothing in NOLOGY STANDARDS; REPORTS this section shall be construed to require tions, or certification criteria, the Secretary SEC. 13111. COORDINATION OF FEDERAL ACTIVI- shall notify the National Coordinator and that a private or government entity adopt or TIES WITH ADOPTED STANDARDS the HIT Standards Committee in writing of use the technology provided under this sec- AND IMPLEMENTATION SPECIFICA- such determination and the reasons for not tion. TIONS. proposing the adoption of such recommenda- ‘‘SEC. 3008. TRANSITIONS. (a) SPENDING ON HEALTH INFORMATION tion. ‘‘(a) ONCHIT.—To the extent consistent TECHNOLOGY SYSTEMS.—As each agency (as ‘‘(3) PUBLICATION.—The Secretary shall with section 3001, all functions, personnel, defined in the Executive Order issued on Au- provide for publication in the Federal Reg- assets, liabilities, and administrative actions gust 22, 2006, relating to promoting quality ister of all determinations made by the Sec- applicable to the National Coordinator for and efficient health care in Federal govern- retary under paragraph (1). Health Information Technology appointed ment administered or sponsored health care ‘‘(b) ADOPTION OF INITIAL SET OF STAND- under Executive Order 13335 or the Office of programs) implements, acquires, or upgrades ARDS, IMPLEMENTATION SPECIFICATIONS, AND such National Coordinator on the date before health information technology systems used CERTIFICATION CRITERIA.— the date of the enactment of this title shall for the direct exchange of individually iden- ‘‘(1) IN GENERAL.—Not later than December be transferred to the National Coordinator tifiable health information between agencies 31, 2009, the Secretary shall, through the appointed under section 3001(a) and the Of- and with non-Federal entities, it shall uti- rulemaking process described in section 3003, fice of such National Coordinator as of the lize, where available, health information adopt an initial set of standards, implemen- date of the enactment of this title. technology systems and products that meet tation specifications, and certification cri- ‘‘(b) AHIC.— standards and implementation specifications teria for the areas required for consideration ‘‘(1) To the extent consistent with sections adopted under section 3004(b) of the Public under section 3002(b)(2)(B). 3002 and 3003, all functions, personnel, assets, Health Service Act, as added by section ‘‘(2) APPLICATION OF CURRENT STANDARDS, and liabilities applicable to the AHIC Suc- 13101. IMPLEMENTATION SPECIFICATIONS, AND CER- cessor, Inc. doing business as the National (b) FEDERAL INFORMATION COLLECTION AC- TIFICATION CRITERIA.—The standards, imple- eHealth Collaborative as of the day before TIVITIES.—With respect to a standard or im- mentation specifications, and certification the date of the enactment of this title shall plementation specification adopted under criteria adopted before the date of the enact- be transferred to the HIT Policy Committee section 3004(b) of the Public Health Service ment of this title through the process exist- or the HIT Standards Committee, estab- Act, as added by section 13101, the President ing through the Office of the National Coor- lished under section 3002(a) or 3003(a), as ap- shall take measures to ensure that Federal

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00058 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.040 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1161 activities involving the broad collection and (B) identification of— (A) interfaces between human information submission of health information are con- (i) barriers to innovation in aging services and communications technology systems; sistent with such standard or implementa- technology and devising strategies for re- (B) voice-recognition systems; tion specification, respectively, within three moving such barriers; and (C) software that improves interoperability years after the date of such adoption. (ii) barriers to the adoption of aging serv- and connectivity among health information (c) APPLICATION OF DEFINITIONS.—The defi- ices technology by health care providers and systems; nitions contained in section 3000 of the Pub- consumers and devising strategies to remov- (D) software dependability in systems crit- lic Health Service Act, as added by section ing such barriers. ical to health care delivery; 13101, shall apply for purposes of this part. (3) REPORT.—Not later than 24 months (E) measurement of the impact of informa- SEC. 13112. APPLICATION TO PRIVATE ENTITIES. after the date of the enactment of this Act, tion technologies on the quality and produc- Each agency (as defined in such Executive the Secretary shall submit to the appro- tivity of health care; Order issued on August 22, 2006, relating to priate committees of jurisdiction of the (F) health information enterprise manage- promoting quality and efficient health care House of Representatives and of the Senate a ment; in Federal government administered or spon- report on the study carried out under para- (G) health information technology security sored health care programs) shall require in graph (1). and integrity; and contracts or agreements with health care (4) DEFINITIONS.—For purposes of this sub- (H) relevant health information technology providers, health plans, or health insurance section: to reduce medical errors. issuers that as each provider, plan, or issuer (A) AGING SERVICES TECHNOLOGY.—The (5) APPLICATIONS.—An institution of higher implements, acquires, or upgrades health in- term ‘‘aging services technology’’ means education (or a consortium thereof) seeking formation technology systems, it shall uti- health technology that meets the health funding under this subsection shall submit lize, where available, health information care needs of seniors, individuals with dis- an application to the Director of the Na- technology systems and products that meet abilities, and the caregivers of such seniors tional Institute of Standards and Technology standards and implementation specifications and individuals. at such time, in such manner, and con- adopted under section 3004(b) of the Public (B) SENIOR.—The term ‘‘senior’’ has such taining such information as the Director Health Service Act, as added by section meaning as specified by the Secretary. may require. The application shall include, 13101. Subtitle B—Testing of Health Information at a minimum, a description of— SEC. 13113. STUDY AND REPORTS. Technology (A) the research projects that will be un- (a) REPORT ON ADOPTION OF NATIONWIDE dertaken by the Center established pursuant SYSTEM.—Not later than 2 years after the SEC. 13201. NATIONAL INSTITUTE FOR STAND- to assistance under paragraph (1) and the re- date of the enactment of this Act and annu- ARDS AND TECHNOLOGY TESTING. spective contributions of the participating ally thereafter, the Secretary of Health and (a) PILOT TESTING OF STANDARDS AND IM- entities; Human Services shall submit to the appro- PLEMENTATION SPECIFICATIONS.—In coordina- (B) how the Center will promote active col- priate committees of jurisdiction of the tion with the HIT Standards Committee es- tablished under section 3003 of the Public laboration among scientists and engineers House of Representatives and the Senate a Health Service Act, as added by section from different disciplines, such as informa- report that— 13101, with respect to the development of tion technology, biologic sciences, manage- (1) describes the specific actions that have standards and implementation specifications ment, social sciences, and other appropriate been taken by the Federal Government and under such section, the Director of the Na- disciplines; private entities to facilitate the adoption of tional Institute for Standards and Tech- (C) technology transfer activities to dem- a nationwide system for the electronic use nology shall test such standards and imple- onstrate and diffuse the research results, and exchange of health information; mentation specifications, as appropriate, in technologies, and knowledge; and (2) describes barriers to the adoption of order to assure the efficient implementation (D) how the Center will contribute to the such a nationwide system; and and use of such standards and implementa- education and training of researchers and (3) contains recommendations to achieve tion specifications. other professionals in fields relevant to full implementation of such a nationwide (b) VOLUNTARY TESTING PROGRAM.—In co- health information enterprise integration. system. ordination with the HIT Standards Com- (b) NATIONAL INFORMATION TECHNOLOGY RE- (b) REIMBURSEMENT INCENTIVE STUDY AND mittee established under section 3003 of the SEARCH AND DEVELOPMENT PROGRAM.—The REPORT.— Public Health Service Act, as added by sec- National High-Performance Computing Pro- (1) STUDY.—The Secretary of Health and tion 13101, with respect to the development gram established by section 101 of the High- Human Services shall carry out, or contract of standards and implementation specifica- Performance Computing Act of 1991 (15 with a private entity to carry out, a study tions under such section, the Director of the U.S.C. 5511) shall coordinate Federal re- that examines methods to create efficient re- National Institute of Standards and Tech- search and development programs related to imbursement incentives for improving nology shall support the establishment of a the development and deployment of health health care quality in Federally qualified conformance testing infrastructure, includ- information technology, including activities health centers, rural health clinics, and free ing the development of technical test beds. related to— clinics. The development of this conformance testing (1) computer infrastructure; (2) REPORT.—Not later than 2 years after infrastructure may include a program to ac- (2) data security; the date of the enactment of this Act, the credit independent, non-Federal laboratories (3) development of large-scale, distributed, Secretary of Health and Human Services to perform testing. reliable computing systems; shall submit to the appropriate committees SEC. 13202. RESEARCH AND DEVELOPMENT PRO- (4) wired, wireless, and hybrid high-speed of jurisdiction of the House of Representa- GRAMS. networking; tives and the Senate a report on the study (a) HEALTH CARE INFORMATION ENTERPRISE (5) development of software and software- carried out under paragraph (1). INTEGRATION RESEARCH CENTERS.— intensive systems; (c) AGING SERVICES TECHNOLOGY STUDY AND (1) IN GENERAL.—The Director of the Na- (6) human-computer interaction and infor- REPORT.— tional Institute of Standards and Tech- mation management technologies; and (1) IN GENERAL.—The Secretary of Health nology, in consultation with the Director of and Human Services shall carry out, or con- the National Science Foundation and other (7) the social and economic implications of tract with a private entity to carry out, a appropriate Federal agencies, shall establish information technology. study of matters relating to the potential a program of assistance to institutions of Subtitle C—Incentives for the Use of Health use of new aging services technology to as- higher education (or consortia thereof which Information Technology sist seniors, individuals with disabilities, and may include nonprofit entities and Federal PART I—GRANTS AND LOANS FUNDING their caregivers throughout the aging proc- Government laboratories) to establish multi- SEC. 13301. GRANT, LOAN, AND DEMONSTRATION ess. disciplinary Centers for Health Care Infor- PROGRAMS. (2) MATTERS TO BE STUDIED.—The study mation Enterprise Integration. Title XXX of the Public Health Service under paragraph (1) shall include— (2) REVIEW; COMPETITION.—Grants shall be Act, as added by section 13101, is amended by (A) an evaluation of— awarded under this subsection on a merit-re- adding at the end the following new subtitle: (i) methods for identifying current, emerg- viewed, competitive basis. ‘‘Subtitle B—Incentives for the Use of Health ing, and future health technology that can (3) PURPOSE.—The purposes of the Centers Information Technology be used to meet the needs of seniors and indi- described in paragraph (1) shall be— ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTH- viduals with disabilities and their caregivers (A) to generate innovative approaches to EN THE HEALTH INFORMATION across all aging services settings, as speci- health care information enterprise integra- TECHNOLOGY INFRASTRUCTURE. fied by the Secretary; tion by conducting cutting-edge, multidisci- ‘‘(a) IN GENERAL.—The Secretary of Health (ii) methods for fostering scientific innova- plinary research on the systems challenges and Human Services shall, using amounts tion with respect to aging services tech- to health care delivery; and appropriated under section 3018, invest in the nology within the business and academic (B) the development and use of health in- infrastructure necessary to allow for and communities; and formation technologies and other com- promote the electronic exchange and use of (iii) developments in aging services tech- plementary fields. health information for each individual in the nology in other countries that may be ap- (4) RESEARCH AREAS.—Research areas may United States consistent with the goals out- plied in the United States; and include— lined in the strategic plan developed by the

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00059 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.041 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1162 CONGRESSIONAL RECORD — SENATE January 30, 2009 National Coordinator (and, as available) technology extension program to provide nonprofit institution or organization, or under section 3001. To the greatest extent health information technology assistance group thereof, that applies and is awarded fi- practicable, the Secretary shall ensure that services to be carried out through the De- nancial assistance under this section. Indi- any funds so appropriated shall be used for partment of Health and Human Services. The vidual awards shall be decided on the basis of the acquisition of health information tech- National Coordinator shall consult with merit. nology that meets standards and certifi- other Federal agencies with demonstrated ‘‘(3) OBJECTIVE.—The objective of the re- cation criteria adopted before the date of the experience and expertise in information gional centers is to enhance and promote the enactment of this title until such date as the technology services, such as the National In- adoption of health information technology standards are adopted under section 3004. stitute of Standards and Technology, in de- through— The Secretary shall invest funds through the veloping and implementing this program. ‘‘(A) assistance with the implementation, ‘‘(b) HEALTH INFORMATION TECHNOLOGY RE- different agencies with expertise in such effective use, upgrading, and ongoing main- SEARCH CENTER.— goals, such as the Office of the National Co- tenance of health information technology, ‘‘(1) IN GENERAL.—The Secretary shall cre- ordinator for Health Information Tech- including electronic health records, to ate a Health Information Technology Re- nology, the Health Resources and Services healthcare providers nationwide; Administration, the Agency for Healthcare search Center (in this section referred to as the ‘Center’) to provide technical assistance ‘‘(B) broad participation of individuals Research and Quality, the Centers of Medi- from industry, universities, and State gov- care & Medicaid Services, the Centers for and develop or recognize best practices to ernments; Disease Control and Prevention, and the In- support and accelerate efforts to adopt, im- ‘‘(C) active dissemination of best practices dian Health Service to support the following: plement, and effectively utilize health infor- and research on the implementation, effec- ‘‘(1) Health information technology archi- mation technology that allows for the elec- tive use, upgrading, and ongoing mainte- tecture that will support the nationwide tronic exchange and use of information in nance of health information technology, in- electronic exchange and use of health infor- compliance with standards, implementation cluding electronic health records, to health mation in a secure, private, and accurate specifications, and certification criteria care providers in order to improve the qual- manner, including connecting health infor- adopted under section 3004(b). ity of healthcare and protect the privacy and mation exchanges, and which may include ‘‘(2) INPUT.—The Center shall incorporate security of health information; updating and implementing the infrastruc- input from— ‘‘(D) participation, to the extent prac- ture necessary within different agencies of ‘‘(A) other Federal agencies with dem- ticable, in health information exchanges; the Department of Health and Human Serv- onstrated experience and expertise in infor- ‘‘(E) utilization, when appropriate, of the ices to support the electronic use and ex- mation technology services such as the Na- expertise and capability that exists in fed- change of health information. tional Institute of Standards and Tech- eral agencies other than the Department; ‘‘(2) Development and adoption of appro- nology; and priate certified electronic health records for ‘‘(B) users of health information tech- ‘‘(F) integration of health information categories of providers not eligible for sup- nology, such as providers and their support technology, including electronic health port under title XVIII or XIX of the Social and clerical staff and others involved in the records, into the initial and ongoing training Security Act for the adoption of such care and care coordination of patients, from of health professionals and others in the records. the health care and health information tech- healthcare industry that would be instru- ‘‘(3) Training on and dissemination of in- nology industry; and mental to improving the quality of formation on best practices to integrate ‘‘(C) others as appropriate. healthcare through the smooth and accurate health information technology, including ‘‘(3) PURPOSES.—The purposes of the Center electronic use and exchange of health infor- electronic health records, into a provider’s are to— mation. delivery of care, consistent with best prac- ‘‘(A) provide a forum for the exchange of ‘‘(4) REGIONAL ASSISTANCE.—Each regional tices learned from the Health Information knowledge and experience; center shall aim to provide assistance and Technology Research Center developed under ‘‘(B) accelerate the transfer of lessons education to all providers in a region, but section 3012, including community health learned from existing public and private sec- shall prioritize any direct assistance first to centers receiving assistance under section tor initiatives, including those currently re- the following: 330 of the Public Health Service Act, covered ceiving Federal financial support; ‘‘(A) Public or not-for-profit hospitals or entities under section 340B of such Act, and ‘‘(C) assemble, analyze, and widely dis- critical access hospitals. providers participating in one or more of the seminate evidence and experience related to ‘‘(B) Federally qualified health centers (as programs under titles XVIII, XIX, and XXI of the adoption, implementation, and effective defined in section 1861(aa)(4) of the Social the Social Security Act (relating to Medi- use of health information technology that Security Act). care, Medicaid, and the State Children’s allows for the electronic exchange and use of ‘‘(C) Entities that are located in rural and Health Insurance Program). information including through the regional other areas that serve uninsured, under- ‘‘(4) Infrastructure and tools for the pro- centers described in subsection (c); insured, and medically underserved individ- motion of telemedicine, including coordina- ‘‘(D) provide technical assistance for the uals (regardless of whether such area is tion among Federal agencies in the pro- establishment and evaluation of regional and urban or rural). motion of telemedicine. local health information networks to facili- ‘‘(D) Individual or small group practices ‘‘(5) Promotion of the interoperability of tate the electronic exchange of information (or a consortium thereof) that are primarily clinical data repositories or registries. across health care settings and improve the focused on primary care. ‘‘(6) Promotion of technologies and best quality of health care; ‘‘(5) FINANCIAL SUPPORT.—The Secretary practices that enhance the protection of ‘‘(E) provide technical assistance for the may provide financial support to any re- health information by all holders of individ- development and dissemination of solutions gional center created under this subsection ually identifiable health information. to barriers to the exchange of electronic for a period not to exceed four years. The ‘‘(7) Improve and expand the use of health health information; and Secretary may not provide more than 50 per- information technology by public health de- ‘‘(F) learn about effective strategies to cent of the capital and annual operating and partments. adopt and utilize health information tech- maintenance funds required to create and ‘‘(8) Provide $300,000,000 to support regional nology in medically underserved commu- maintain such a center, except in an in- or sub-national efforts towards health infor- nities. ‘‘(c) HEALTH INFORMATION TECHNOLOGY RE- stance of national economic conditions mation exchange. GIONAL XTENSION ENTERS ‘‘(b) COORDINATION.—The Secretary shall E C .— which would render this cost-share require- ensure funds under this section are used in a ‘‘(1) IN GENERAL.—The Secretary shall pro- ment detrimental to the program and upon coordinated manner with other health infor- vide assistance for the creation and support notification to Congress as to the justifica- mation promotion activities. of regional centers (in this subsection re- tion to waive the cost-share requirement. ‘‘(c) ADDITIONAL USE OF FUNDS.—In addi- ferred to as ‘regional centers’) to provide ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND tion to using funds as provided in subsection technical assistance and disseminate best AVAILABILITY OF FUNDS.—The Secretary shall (a), the Secretary may use amounts appro- practices and other information learned publish in the Federal Register, not later priated under section 3018 to carry out ac- from the Center to support and accelerate ef- than 90 days after the date of the enactment tivities that are provided for under laws in forts to adopt, implement, and effectively of this Act, a draft description of the pro- effect on the date of enactment of this title. utilize health information technology that gram for establishing regional centers under ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY allows for the electronic exchange and use of this subsection. Such description shall in- IMPLEMENTATION ASSISTANCE. information in compliance with standards, clude the following: ‘‘(a) HEALTH INFORMATION TECHNOLOGY EX- implementation specifications, and certifi- ‘‘(A) A detailed explanation of the program TENSION PROGRAM.—To assist health care cation criteria adopted under section 3004. and the programs goals. providers to adopt, implement, and effec- Activities conducted under this subsection ‘‘(B) Procedures to be followed by the ap- tively use certified EHR technology that al- shall be consistent with the strategic plan plicants. lows for the electronic exchange and use of developed by the National Coordinator (and, ‘‘(C) Criteria for determining qualified ap- health information, the Secretary, acting as available) under section 3001. plicants. through the Office of the National Coordi- ‘‘(2) AFFILIATION.—Regional centers shall ‘‘(D) Maximum support levels expected to nator, shall establish a health information be affiliated with any United States-based be available to centers under the program.

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‘‘(7) APPLICATION REVIEW.—The Secretary ‘‘(4) providing technical assistance for the ‘‘(10) such other entities, as may be deter- shall subject each application under this sub- development and dissemination of solutions mined appropriate by the Secretary. section to merit review. In making a deci- to barriers to the exchange of electronic ‘‘(h) CONTINUOUS IMPROVEMENT.—The Sec- sion whether to approve such application and health information; retary shall annually evaluate the activities provide financial support, the Secretary ‘‘(5) promoting effective strategies to conducted under this section and shall, in shall consider at a minimum the merits of adopt and utilize health information tech- awarding grants under this section, imple- the application, including those portions of nology in medically underserved commu- ment the lessons learned from such evalua- the application regarding— nities; tion in a manner so that awards made subse- ‘‘(A) the ability of the applicant to provide ‘‘(6) assisting patients in utilizing health quent to each such evaluation are made in a assistance under this subsection and utiliza- information technology; manner that, in the determination of the tion of health information technology appro- ‘‘(7) encouraging clinicians to work with Secretary, will lead towards the greatest im- priate to the needs of particular categories Health Information Technology Regional Ex- provement in quality of care, decrease in of health care providers; tension Centers as described in section 3012, costs, and the most effective authorized and ‘‘(B) the types of service to be provided to to the extent they are available and valu- secure electronic exchange of health infor- health care providers; able; mation. ‘‘(i) REQUIRED MATCH.— ‘‘(C) geographical diversity and extent of ‘‘(8) supporting public health agencies’ au- ‘‘(1) IN GENERAL.—For a fiscal year (begin- service area; and thorized use of and access to electronic ning with fiscal year 2011), the Secretary ‘‘(D) the percentage of funding and amount health information; may not make a grant under subsection (a) of in-kind commitment from other sources. ‘‘(9) promoting the use of electronic health to a State unless the State agrees to make ‘‘(8) BIENNIAL EVALUATION.—Each regional records for quality improvement including available non-Federal contributions (which center which receives financial assistance through quality measures reporting; and may include in-kind contributions) toward under this subsection shall be evaluated bi- ‘‘(10) such other activities as the Secretary the costs of a grant awarded under sub- ennially by an evaluation panel appointed by may specify. section (a)(3) in an amount equal to— the Secretary. Each evaluation panel shall ‘‘(e) PLAN.— ‘‘(A) for fiscal year 2011, not less than $1 for be composed of private experts, none of ‘‘(1) IN GENERAL.—A plan described in this each $10 of Federal funds provided under the whom shall be connected with the center in- subsection is a plan that describes the activi- grant; volved, and of Federal officials. Each evalua- ties to be carried out by a State or by the ‘‘(B) for fiscal year 2012, not less than $1 for tion panel shall measure the involved cen- qualified State-designated entity within each $7 of Federal funds provided under the ter’s performance against the objective spec- such State to facilitate and expand the elec- grant; and ified in paragraph (3). The Secretary shall tronic movement and use of health informa- ‘‘(C) for fiscal year 2013 and each subse- not continue to provide funding to a regional tion among organizations according to na- quent fiscal year, not less than $1 for each $3 center unless its evaluation is overall posi- tionally recognized standards and implemen- of Federal funds provided under the grant. tive. tation specifications. ‘‘(2) AUTHORITY TO REQUIRE STATE MATCH ‘‘(9) CONTINUING SUPPORT.—After the sec- ‘‘(2) REQUIRED ELEMENTS.—A plan described FOR FISCAL YEARS BEFORE FISCAL YEAR 2011.— ond year of assistance under this subsection in paragraph (1) shall— For any fiscal year during the grant program a regional center may receive additional sup- ‘‘(A) be pursued in the public interest; under this section before fiscal year 2011, the port under this subsection if it has received ‘‘(B) be consistent with the strategic plan Secretary may determine the extent to positive evaluations and a finding by the developed by the National Coordinator (and, which there shall be required a non-Federal Secretary that continuation of Federal fund- as available) under section 3001; contribution from a State receiving a grant ing to the center was in the best interest of ‘‘(C) include a description of the ways the under this section. provision of health information technology State or qualified State-designated entity ‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES extension services. will carry out the activities described in sub- AND INDIAN TRIBES FOR THE DE- ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH section (b); and VELOPMENT OF LOAN PROGRAMS INFORMATION TECHNOLOGY. ‘‘(D) contain such elements as the Sec- TO FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED EHR ‘‘(a) IN GENERAL.—The Secretary, acting retary may require. TECHNOLOGY. through the National Coordinator, shall es- ‘‘(f) QUALIFIED STATE-DESIGNATED ENTI- ‘‘(a) IN GENERAL.—The National Coordi- tablish a program in accordance with this TY.—For purposes of this section, to be a nator may award competitive grants to eligi- section to facilitate and expand the elec- qualified State-designated entity, with re- ble entities for the establishment of pro- tronic movement and use of health informa- spect to a State, an entity shall— grams for loans to health care providers to tion among organizations according to na- ‘‘(1) be designated by the State as eligible conduct the activities described in sub- tionally recognized standards. to receive awards under this section; section (e). ‘‘(b) PLANNING GRANTS.—The Secretary ‘‘(2) be a not-for-profit entity with broad ‘‘(b) ELIGIBLE ENTITY DEFINED.—For pur- may award a grant to a State or qualified stakeholder representation on its governing poses of this subsection, the term ‘eligible State-designated entity (as described in sub- board; entity’ means a State or Indian tribe (as de- section (d)) that submits an application to ‘‘(3) demonstrate that one of its principal fined in the Indian Self-Determination and the Secretary at such time, in such manner, goals is to use information technology to im- Education Assistance Act) that— and containing such information as the Sec- prove health care quality and efficiency ‘‘(1) submits to the National Coordinator retary may specify, for the purpose of plan- through the authorized and secure electronic an application at such time, in such manner, ning activities described in subsection (b). exchange and use of health information; and containing such information as the Na- ‘‘(c) IMPLEMENTATION GRANTS.—The Sec- ‘‘(4) adopt nondiscrimination and conflict tional Coordinator may require; retary may award a grant to a State or of interest policies that demonstrate a com- ‘‘(2) submits to the National Coordinator a qualified State designated entity that— mitment to open, fair, and nondiscrim- strategic plan in accordance with subsection ‘‘(1) has submitted, and the Secretary has inatory participation by stakeholders; and (d) and provides to the National Coordinator approved, a plan described in subsection (c) ‘‘(5) conform to such other requirements as assurances that the entity will update such (regardless of whether such plan was pre- the Secretary may establish. plan annually in accordance with such sub- pared using amounts awarded under para- ‘‘(g) REQUIRED CONSULTATION.—In carrying section; graph (1)); and out activities described in subsections (a)(2) ‘‘(3) provides assurances to the National ‘‘(2) submits an application at such time, and (a)(3), a State or qualified State-des- Coordinator that the entity will establish a in such manner, and containing such infor- ignated entity shall consult with and con- Loan Fund in accordance with subsection (c); mation as the Secretary may specify. sider the recommendations of— ‘‘(4) provides assurances to the National ‘‘(d) USE OF FUNDS.—Amounts received ‘‘(1) health care providers (including pro- Coordinator that the entity will not provide under a grant under subsection (a)(3) shall be viders that provide services to low income a loan from the Loan Fund to a health care used to conduct activities to facilitate and and underserved populations); provider unless the provider agrees to— expand the electronic movement and use of ‘‘(2) health plans; ‘‘(A) submit reports on quality measures health information among organizations ac- ‘‘(3) patient or consumer organizations adopted by the Federal Government (by not cording to nationally recognized standards that represent the population to be served; later than 90 days after the date on which through activities that include— ‘‘(4) health information technology ven- such measures are adopted), to— ‘‘(1) enhancing broad and varied participa- dors; ‘‘(i) the Director of the Centers for Medi- tion in the authorized and secure nationwide ‘‘(5) health care purchasers and employers; care & Medicaid Services (or his or her des- electronic use and exchange of health infor- ‘‘(6) public health agencies; ignee), in the case of an entity participating mation; ‘‘(7) health professions schools, universities in the Medicare program under title XVIII of ‘‘(2) identifying State or local resources and colleges; the Social Security Act or the Medicaid pro- available towards a nationwide effort to pro- ‘‘(8) clinical researchers; gram under title XIX of such Act; or mote health information technology; ‘‘(9) other users of health information tech- ‘‘(ii) the Secretary in the case of other en- ‘‘(3) complementing other Federal grants, nology such as the support and clerical staff tities; programs, and efforts towards the promotion of providers and others involved in the care ‘‘(B) demonstrate to the satisfaction of the of health information technology; and care coordination of patients; and Secretary (through criteria established by

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the Secretary) that any certified EHR tech- ‘‘(B) The principal and interest payments ‘‘(2) DETERMINATION OF AMOUNT OF NON-FED- nology purchased, improved, or otherwise fi- on each loan shall commence not later than ERAL CONTRIBUTION.—In determining the nancially supported under a loan under this 1 year after the date the loan was awarded, amount of non-Federal contributions that an section is used to exchange health informa- and each loan shall be fully amortized not eligible entity has provided pursuant to sub- tion in a manner that, in accordance with later than 10 years after the date of the loan. paragraph (A), the National Coordinator may law and standards (as adopted under section ‘‘(C) The Loan Fund shall be credited with not include any amounts provided to the en- 3005) applicable to the exchange of informa- all payments of principal and interest on tity by the Federal Government. tion, improves the quality of health care, each loan awarded from the Loan Fund. ‘‘(i) EFFECTIVE DATE.—The Secretary may such as promoting care coordination; ‘‘(2) To guarantee, or purchase insurance not make an award under this section prior ‘‘(C) comply with such other requirements for, a local obligation (all of the proceeds of to January 1, 2010. as the entity or the Secretary may require; which finance a project eligible for assist- ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTE- ‘‘(D) include a plan on how healthcare pro- ance under this subsection) if the guarantee GRATE INFORMATION TECHNOLOGY viders involved intend to maintain and sup- or purchase would improve credit market ac- INTO CLINICAL EDUCATION. port the certified EHR technology over time; cess or reduce the interest rate applicable to ‘‘(a) IN GENERAL.—The Secretary may and the obligation involved. award grants under this section to carry out ‘‘(E) include a plan on how the healthcare ‘‘(3) As a source of revenue or security for demonstration projects to develop academic providers involved intend to maintain and the payment of principal and interest on rev- curricula integrating certified EHR tech- support the certified EHR technology that enue or general obligation bonds issued by nology in the clinical education of health would be purchased with such loan, including the eligible entity if the proceeds of the sale professionals. Such awards shall be made on the type of resources expected to be involved of the bonds will be deposited into the Loan a competitive basis and pursuant to peer re- and any such other information as the State Fund. view. ‘‘(b) ELIGIBILITY.—To be eligible to receive or Indian tribe, respectively, may require; ‘‘(4) To earn interest on the amounts de- a grant under subsection (a), an entity and posited into the Loan Fund. shall— ‘‘(5) agrees to provide matching funds in ‘‘(5) To make reimbursements described in ‘‘(1) submit to the Secretary an application accordance with subsection (i). subsection (g)(4)(A). ‘‘(c) ESTABLISHMENT OF FUND.—For pur- ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— at such time, in such manner, and con- poses of subsection (b)(3), an eligible entity ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— taining such information as the Secretary shall establish a certified EHR technology An eligible entity may (as a convenience and may require; loan fund (referred to in this subsection as a to avoid unnecessary administrative costs) ‘‘(2) submit to the Secretary a strategic ‘Loan Fund’) and comply with the other re- combine, in accordance with applicable plan for integrating certified EHR tech- quirements contained in this section. A State law, the financial administration of a nology in the clinical education of health grant to an eligible entity under this section Loan Fund established under this subsection professionals to reduce medical errors, in- shall be deposited in the Loan Fund estab- with the financial administration of any crease access to prevention, reduce chronic lished by the eligible entity. No funds au- other revolving fund established by the enti- diseases, and enhance health care quality; thorized by other provisions of this title to ty if otherwise not prohibited by the law ‘‘(3) be— be used for other purposes specified in this under which the Loan Fund was established. ‘‘(A) a school of medicine, osteopathic title shall be deposited in any Loan Fund. ‘‘(2) COST OF ADMINISTERING FUND.—Each medicine, dentistry, or pharmacy, a graduate ‘‘(d) STRATEGIC PLAN.— eligible entity may annually use not to ex- program in behavioral or mental health, or ‘‘(1) IN GENERAL.—For purposes of sub- ceed 4 percent of the funds provided to the any other graduate health professions section (b)(2), a strategic plan of an eligible entity under a grant under this subsection to school; entity under this subsection shall identify pay the reasonable costs of the administra- ‘‘(B) a graduate school of nursing or physi- the intended uses of amounts available to tion of the programs under this section, in- cian assistant studies; the Loan Fund of such entity. cluding the recovery of reasonable costs ex- ‘‘(C) a consortium of two or more schools ‘‘(2) CONTENTS.—A strategic plan under pended to establish a Loan Fund which are described in subparagraph (A) or (B); or paragraph (1), with respect to a Loan Fund of incurred after the date of the enactment of ‘‘(D) an institution with a graduate med- an eligible entity, shall include for a year this title. ical education program in medicine, osteo- the following: ‘‘(3) GUIDANCE AND REGULATIONS.—The Na- pathic medicine, dentistry, pharmacy, nurs- ‘‘(A) A list of the projects to be assisted tional Coordinator shall publish guidance ing, or physician assistance studies. through the Loan Fund during such year. and promulgate regulations as may be nec- ‘‘(4) provide for the collection of data re- ‘‘(B) A description of the criteria and essary to carry out the provisions of this sec- garding the effectiveness of the demonstra- methods established for the distribution of tion, including— tion project to be funded under the grant in funds from the Loan Fund during the year. ‘‘(A) provisions to ensure that each eligible improving the safety of patients, the effi- ‘‘(C) A description of the financial status of entity commits and expends funds allotted ciency of health care delivery, and in in- the Loan Fund as of the date of submission to the entity under this subsection as effi- creasing the likelihood that graduates of the of the plan. ciently as possible in accordance with this grantee will adopt and incorporate certified ‘‘(D) The short-term and long-term goals of title and applicable State laws; and EHR technology, in the delivery of health the Loan Fund. ‘‘(B) guidance to prevent waste, fraud, and care services; and ‘‘(e) USE OF FUNDS.—Amounts deposited in abuse. ‘‘(5) provide matching funds in accordance a Loan Fund, including loan repayments and ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— with subsection (d). interest earned on such amounts, shall be ‘‘(A) IN GENERAL.—A Loan Fund estab- ‘‘(c) USE OF FUNDS.— used only for awarding loans or loan guaran- lished under this subsection may accept con- ‘‘(1) IN GENERAL.—With respect to a grant tees, making reimbursements described in tributions from private sector entities, ex- under subsection (a), an eligible entity subsection (g)(4)(A), or as a source of reserve cept that such entities may not specify the shall— and security for leveraged loans, the pro- recipient or recipients of any loan issued ‘‘(A) use grant funds in collaboration with ceeds of which are deposited in the Loan under this subsection. An eligible entity may 2 or more disciplines; and Fund established under subsection (a). Loans agree to reimburse a private sector entity ‘‘(B) use grant funds to integrate certified under this section may be used by a health for any contribution made under this sub- EHR technology into community-based clin- care provider to— paragraph, except that the amount of such ical education. ‘‘(1) facilitate the purchase of certified reimbursement may not be greater than the ‘‘(2) LIMITATION.—An eligible entity shall EHR technology; principal amount of the contribution made. not use amounts received under a grant ‘‘(2) enhance the utilization of certified ‘‘(B) AVAILABILITY OF INFORMATION.—An el- under subsection (a) to purchase hardware, EHR technology (which may include costs igible entity shall make publicly available software, or services. associated with upgrading health informa- the identity of, and amount contributed by, ‘‘(d) FINANCIAL SUPPORT.—The Secretary tion technology so that it meets criteria nec- any private sector entity under subpara- may not provide more than 50 percent of the essary to be a certified EHR technology); graph (A) and may issue letters of com- costs of any activity for which assistance is ‘‘(3) train personnel in the use of such tech- mendation or make other awards (that have provided under subsection (a), except in an nology; or no financial value) to any such entity. instance of national economic conditions ‘‘(4) improve the secure electronic ex- ‘‘(h) MATCHING REQUIREMENTS.— which would render the cost-share require- change of health information. ‘‘(1) IN GENERAL.—The National Coordi- ment under this subsection detrimental to ‘‘(f) TYPES OF ASSISTANCE.—Except as oth- nator may not make a grant under sub- the program and upon notification to Con- erwise limited by applicable State law, section (a) to an eligible entity unless the gress as to the justification to waive the amounts deposited into a Loan Fund under entity agrees to make available (directly or cost-share requirement. this subsection may only be used for the fol- through donations from public or private en- ‘‘(e) EVALUATION.—The Secretary shall lowing: tities) non-Federal contributions in cash to take such action as may be necessary to ‘‘(1) To award loans that comply with the the costs of carrying out the activities for evaluate the projects funded under this sec- following: which the grant is awarded in an amount tion and publish, make available, and dis- ‘‘(A) The interest rate for each loan shall equal to not less than $1 for each $5 of Fed- seminate the results of such evaluations on not exceed the market interest rate. eral funds provided under the grant. as wide a basis as is practicable.

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‘‘(f) REPORTS.—Not later than 1 year after such sums as may be necessary for each of American Samoa, and the Northern Mariana the date of enactment of this title, and annu- the fiscal years 2009 through 2013. Amounts Islands. ally thereafter, the Secretary shall submit so appropriated shall remain available until (16) TREATMENT.—The term ‘‘treatment’’ to the Committee on Health, Education, expended.’’. has the meaning given such term in section Labor, and Pensions and the Committee on Subtitle D—Privacy 164.501 of title 45, Code of Federal Regula- Finance of the Senate, and the Committee SEC. 13400. DEFINITIONS. tions. on Energy and Commerce of the House of In this subtitle, except as specified other- (17) USE.—The term ‘‘use’’ has the meaning Representatives a report that— wise: given such term in section 160.103 of title 45, ‘‘(1) describes the specific projects estab- (1) BREACH.—The term ‘‘breach’’ means the Code of Federal Regulations. lished under this section; and unauthorized acquisition, access, use, or dis- (18) VENDOR OF PERSONAL HEALTH ‘‘(2) contains recommendations for Con- closure of protected health information RECORDS.—The term ‘‘vendor of personal gress based on the evaluation conducted which compromises the security, privacy, or health records’’ means an entity, other than under subsection (e). integrity of protected health information a covered entity (as defined in paragraph (3)), ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFES- maintained by or on behalf of a person. Such that offers or maintains a personal health SIONALS ON HEALTH CARE. term does not include any unintentional ac- record. ‘‘(a) IN GENERAL.—The Secretary, in con- quisition, access, use, or disclosure of such PART I—IMPROVED PRIVACY PROVISIONS sultation with the Director of the National information by an employee or agent of the AND SECURITY PROVISIONS Science Foundation, shall provide assistance to institutions of higher education (or con- covered entity or business associate involved SEC. 13401. APPLICATION OF SECURITY PROVI- sortia thereof) to establish or expand med- if such acquisition, access, use, or disclosure, SIONS AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES; ical health informatics education programs, respectively, was made in good faith and within the course and scope of the employ- ANNUAL GUIDANCE ON SECURITY including certification, undergraduate, and PROVISIONS. masters degree programs, for both health ment or other contractual relationship of such employee or agent, respectively, with (a) APPLICATION OF SECURITY PROVISIONS.— care and information technology students to Sections 164.308, 164.310, 164.312, and 164.316 of the covered entity or business associate and ensure the rapid and effective utilization and title 45, Code of Federal Regulations, shall if such information is not further acquired, development of health information tech- apply to a business associate of a covered en- accessed, used, or disclosed by such em- nologies (in the United States health care in- tity in the same manner that such sections ployee or agent. frastructure). apply to the covered entity. The additional (2) BUSINESS ASSOCIATE.—The term ‘‘busi- ‘‘(b) ACTIVITIES.—Activities for which as- requirements of this title that relate to secu- ness associate’’ has the meaning given such sistance may be provided under subsection rity and that are made applicable with re- term in section 160.103 of title 45, Code of (a) may include the following: spect to covered entities shall also be appli- Federal Regulations. ‘‘(1) Developing and revising curricula in cable to such a business associate and shall (3) COVERED ENTITY.—The term ‘‘covered medical health informatics and related dis- be incorporated into the business associate entity’’ has the meaning given such term in ciplines. agreement between the business associate section 160.103 of title 45, Code of Federal ‘‘(2) Recruiting and retaining students to and the covered entity. Regulations. the program involved. (b) APPLICATION OF CIVIL AND CRIMINAL (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘(3) Acquiring equipment necessary for PENALTIES.—In the case of a business asso- student instruction in these programs, in- ‘‘disclosure’’ have the meaning given the ciate that violates any security provision cluding the installation of testbed networks term ‘‘disclosure’’ in section 160.103 of title specified in subsection (a), sections 1176 and for student use. 45, Code of Federal Regulations. 1177 of the Social Security Act (42 U.S.C. ‘‘(4) Establishing or enhancing bridge pro- (5) ELECTRONIC HEALTH RECORD.—The term 1320d-5, 1320d-6) shall apply to the business grams in the health informatics fields be- ‘‘electronic health record’’ means an elec- associate with respect to such violation in tween community colleges and universities. tronic record of health-related information the same manner such sections apply to a ‘‘(c) PRIORITY.—In providing assistance on an individual that is created, gathered, covered entity that violates such security under subsection (a), the Secretary shall give managed, and consulted by authorized health provision. preference to the following: care clinicians and staff. (c) ANNUAL GUIDANCE.—For the first year ‘‘(1) Existing education and training pro- (6) HEALTH CARE OPERATIONS.—The term beginning after the date of the enactment of grams. ‘‘health care operation’’ has the meaning this Act and annually thereafter, the Sec- ‘‘(2) Programs designed to be completed in given such term in section 164.501 of title 45, retary of Health and Human Services shall, less than six months. Code of Federal Regulations. in consultation with industry stakeholders, ‘‘(d) FINANCIAL SUPPORT.—The Secretary (7) HEALTH CARE PROVIDER.—The term annually issue guidance on the most effec- may not provide more than 50 percent of the ‘‘health care provider’’ has the meaning tive and appropriate technical safeguards for costs of any activity for which assistance is given such term in section 160.103 of title 45, use in carrying out the sections referred to provided under subsection (a), except in an Code of Federal Regulations. in subsection (a) and the security standards instance of national economic conditions (8) HEALTH PLAN.—The term ‘‘health plan’’ which would render the cost-share require- in subpart C of part 164 of title 45, Code of has the meaning given such term in section Federal Regulations, as such provisions are ment under this subsection detrimental to 1171(5) of the Social Security Act. the program and upon notification to Con- in effect as of the date before the enactment (9) NATIONAL COORDINATOR.—The term ‘‘Na- of this Act. gress as to the justification to waive the tional Coordinator’’ means the head of the cost-share requirement. SEC. 13402. NOTIFICATION IN THE CASE OF Office of the National Coordinator for Health BREACH. ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVI- Information Technology established under SIONS. (a) IN GENERAL.—A covered entity that ac- section 3001(a) of the Public Health Service ‘‘(a) REPORTS.—The Secretary may require cesses, maintains, retains, modifies, records, Act, as added by section 13101. that an entity receiving assistance under stores, destroys, or otherwise holds, uses, or (10) PAYMENT.—The term ‘‘payment’’ has this title shall submit to the Secretary, not discloses unsecured protected health infor- later than the date that is 1 year after the the meaning given such term in section mation (as defined in subsection (h)(1)) shall, date of receipt of such assistance, a report 164.501 of title 45, Code of Federal Regula- in the case of a breach of such information that includes— tions. that is discovered by the covered entity, no- ‘‘(1) an analysis of the effectiveness of such (11) PERSONAL HEALTH RECORD.—The term tify each individual whose unsecured pro- activities for which the entity receives such ‘‘personal health record’’ means an elec- tected health information has been, or is rea- assistance, as compared to the goals for such tronic record of individually identifiable sonably believed by the covered entity to activities; and health information on an individual that can have been, accessed, acquired, or disclosed as ‘‘(2) an analysis of the impact of the be drawn from multiple sources and that is a result of such breach. project on healthcare quality and safety. managed, shared, and controlled by or for (b) NOTIFICATION OF COVERED ENTITY BY ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF the individual. BUSINESS ASSOCIATE.—A business associate CARE AND DECREASE IN COSTS.—The National (12) PROTECTED HEALTH INFORMATION.—The of a covered entity that accesses, maintains, Coordinator shall annually evaluate the ac- term ‘‘protected health information’’ has the retains, modifies, records, stores, destroys, tivities conducted under this title and shall, meaning given such term in section 160.103 of or otherwise holds, uses, or discloses unse- in awarding grants, implement the lessons title 45, Code of Federal Regulations. cured protected health information shall, learned from such evaluation in a manner so (13) SECRETARY.—The term ‘‘Secretary’’ following the discovery of a breach of such that awards made subsequent to each such means the Secretary of Health and Human information, notify the covered entity of evaluation are made in a manner that, in the Services. such breach. Such notice shall include the determination of the National Coordinator, (14) SECURITY.—The term ‘‘security’’ has identification of each individual whose unse- will result in the greatest improvement in the meaning given such term in section cured protected health information has been, the quality and efficiency of health care. 164.304 of title 45, Code of Federal Regula- or is reasonably believed by the business as- ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIA- tions. sociate to have been, accessed, acquired, or TIONS. (15) STATE.—The term ‘‘State’’ means each disclosed during such breach. ‘‘For the purposes of carrying out this sub- of the several States, the District of Colum- (c) BREACHES TREATED AS DISCOVERED.— title, there is authorized to be appropriated bia, Puerto Rico, the Virgin Islands, Guam, For purposes of this section, a breach shall

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(d) TIMELINESS OF NOTIFICATION.— breach described in subsection (a) in which (2) INFORMATION.—The information de- (1) IN GENERAL.—Subject to subsection (g), the unsecured protected health information scribed in this paragraph regarding breaches all notifications required under this section of more than 500 individuals is acquired or specified in paragraph (1) shall include— shall be made without unreasonable delay disclosed. (A) the number and nature of such and in no case later than 60 calendar days (f) CONTENT OF NOTIFICATION.—Regardless breaches; and after the discovery of a breach by the cov- of the method by which notice is provided to (B) actions taken in response to such ered entity involved (or business associate individuals under this section, notice of a breaches. involved in the case of a notification re- breach shall include, to the extent possible, (j) REGULATIONS; EFFECTIVE DATE.—To quired under subsection (b)). the following: carry out this section, the Secretary of (2) BURDEN OF PROOF.—The covered entity (1) A brief description of what happened, Health and Human Services shall promulgate involved (or business associate involved in including the date of the breach and the date interim final regulations by not later than the case of a notification required under sub- of the discovery of the breach, if known. the date that is 180 days after the date of the section (b)), shall have the burden of dem- (2) A description of the types of unsecured enactment of this title. The provisions of onstrating that all notifications were made protected health information that were in- this section shall apply to breaches that are as required under this part, including evi- volved in the breach (such as full name, So- discovered on or after the date that is 30 dence demonstrating the necessity of any cial Security number, date of birth, home ad- days after the date of publication of such in- delay. dress, account number, or disability code). terim final regulations. (e) METHODS OF NOTICE.— (3) The steps individuals should take to (1) INDIVIDUAL NOTICE.—Notice required SEC. 13403. EDUCATION ON HEALTH INFORMA- protect themselves from potential harm re- under this section to be provided to an indi- TION PRIVACY. sulting from the breach. vidual, with respect to a breach, shall be pro- (a) REGIONAL OFFICE PRIVACY ADVISORS.— (4) A brief description of what the covered vided promptly and in the following form: Not later than 6 months after the date of the entity involved is doing to investigate the (A) Written notification by first-class mail enactment of this Act, the Secretary shall breach, to mitigate losses, and to protect to the individual (or the next of kin of the designate an individual in each regional of- against any further breaches. individual if the individual is deceased) at fice of the Department of Health and Human (5) Contact procedures for individuals to the last known address of the individual or Services to offer guidance and education to ask questions or learn additional informa- the next of kin, respectively, or, if specified covered entities, business associates, and in- tion, which shall include a toll-free tele- as a preference by the individual, by elec- dividuals on their rights and responsibilities phone number, an e-mail address, Web site, tronic mail. The notification may be pro- related to Federal privacy and security re- or postal address. vided in one or more mailings as information quirements for protected health information. (g) DELAY OF NOTIFICATION AUTHORIZED FOR is available. (b) EDUCATION INITIATIVE ON USES OF LAW ENFORCEMENT PURPOSES.—If a law en- EALTH INFORMATION.—Not later than 12 (B) In the case in which there is insuffi- forcement official determines that a notifi- H cient, or out-of-date contact information (in- cation, notice, or posting required under this months after the date of the enactment of cluding a phone number, email address, or section would impede a criminal investiga- this Act, the Office for Civil Rights within any other form of appropriate communica- tion or cause damage to national security, the Department of Health and Human Serv- tion) that precludes direct written (or, if such notification, notice, or posting shall be ices shall develop and maintain a multi-fac- specified by the individual under subpara- delayed in the same manner as provided eted national education initiative to en- graph (A), electronic) notification to the in- under section 164.528(a)(2) of title 45, Code of hance public transparency regarding the uses dividual, a substitute form of notice shall be Federal Regulations, in the case of a disclo- of protected health information, including provided, including, in the case that there sure covered under such section. programs to educate individuals about the are 10 or more individuals for which there is (h) UNSECURED PROTECTED HEALTH INFOR- potential uses of their protected health in- insufficient or out-of-date contact informa- MATION.— formation, the effects of such uses, and the tion, a conspicuous posting for a period de- (1) DEFINITION.— rights of individuals with respect to such termined by the Secretary on the home page (A) IN GENERAL.—Subject to subparagraph uses. Such programs shall be conducted in a of the Web site of the covered entity in- (B), for purposes of this section, the term variety of languages and present information volved or notice in major print or broadcast ‘‘unsecured protected health information’’ in a clear and understandable manner. media, including major media in geographic means protected health information that is SEC. 13404. APPLICATION OF PRIVACY PROVI- areas where the individuals affected by the not secured through the use of a technology SIONS AND PENALTIES TO BUSINESS breach likely reside. Such a notice in media or methodology specified by the Secretary in ASSOCIATES OF COVERED ENTITIES. or web posting will include a toll-free phone the guidance issued under paragraph (2). (a) APPLICATION OF CONTRACT REQUIRE- number where an individual can learn wheth- (B) EXCEPTION IN CASE TIMELY GUIDANCE MENTS.—In the case of a business associate of er or not the individual’s unsecured pro- NOT ISSUED.—In the case that the Secretary a covered entity that obtains or creates pro- tected health information is possibly in- does not issue guidance under paragraph (2) tected health information pursuant to a cluded in the breach. by the date specified in such paragraph, for written contract (or other written arrange- (C) In any case deemed by the covered enti- purposes of this section, the term ‘‘unse- ment) described in section 164.502(e)(2) of ty involved to require urgency because of cured protected health information’’ shall title 45, Code of Federal Regulations, with possible imminent misuse of unsecured pro- mean protected health information that is such covered entity, the business associate tected health information, the covered enti- not secured by a technology standard that may use and disclose such protected health ty, in addition to notice provided under sub- renders protected health information unus- information only if such use or disclosure, paragraph (A), may provide information to able, unreadable, or indecipherable to unau- respectively, is in compliance with each ap- individuals by telephone or other means, as thorized individuals and is developed or en- plicable requirement of section 164.504(e) of appropriate. dorsed by a standards developing organiza- such title. The additional requirements of (2) MEDIA NOTICE.—Notice shall be provided tion that is accredited by the American Na- this subtitle that relate to privacy and that to prominent media outlets serving a State tional Standards Institute. are made applicable with respect to covered or jurisdiction, following the discovery of a (2) GUIDANCE.—For purposes of paragraph entities shall also be applicable to such a breach described in subsection (a), if the un- (1) and section 13407(f)(3), not later than the business associate and shall be incorporated secured protected health information of date that is 60 days after the date of the en- into the business associate agreement be- more than 500 residents of such State or ju- actment of this Act, the Secretary shall, tween the business associate and the covered risdiction is, or is reasonably believed to after consultation with stakeholders, issue entity. have been, accessed, acquired, or disclosed (and annually update) guidance specifying (b) APPLICATION OF KNOWLEDGE ELEMENTS during such breach. the technologies and methodologies that ASSOCIATED WITH CONTRACTS.—Section (3) NOTICE TO SECRETARY.—Notice shall be render protected health information unus- 164.504(e)(1)(ii) of title 45, Code of Federal provided to the Secretary by covered entities able, unreadable, or indecipherable to unau- Regulations, shall apply to a business asso- of unsecured protected health information thorized individuals. ciate described in subsection (a), with re- that has been acquired or disclosed in a (i) REPORT TO CONGRESS ON BREACHES.— spect to compliance with such subsection, in breach. If the breach was with respect to 500 (1) IN GENERAL.—Not later than 12 months the same manner that such section applies or more individuals than such notice must be after the date of the enactment of this Act to a covered entity, with respect to compli- provided immediately. If the breach was with and annually thereafter, the Secretary shall ance with the standards in sections 164.502(e)

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and 164.504(e) of such title, except that in ap- (4) RULE OF CONSTRUCTION.—Nothing in this use or disclosure. In promulgating such regu- plying such section 164.504(e)(1)(ii) each ref- subsection shall be construed as affecting lations, the Secretary may choose to narrow erence to the business associate, with re- the use, disclosure, or request of protected or clarify activities that the Secretary spect to a contract, shall be treated as a ref- health information that has been de-identi- chooses to retain in the definition of health erence to the covered entity involved in such fied. care operations and the Secretary shall take contract. (c) ACCOUNTING OF CERTAIN PROTECTED into account the report under section (c) APPLICATION OF CIVIL AND CRIMINAL HEALTH INFORMATION DISCLOSURES REQUIRED 13424(d). In such regulations the Secretary PENALTIES.—In the case of a business asso- IF COVERED ENTITY USES ELECTRONIC HEALTH shall specify the date on which such regula- ciate that violates any provision of sub- RECORD.— tions shall apply to disclosures made by a section (a) or (b), the provisions of sections (1) IN GENERAL.—In applying section 164.528 covered entity, but in no case would such 1176 and 1177 of the Social Security Act (42 of title 45, Code of Federal Regulations, in date be sooner than the date that is 24 U.S.C. 1320d-5, 1320d-6) shall apply to the the case that a covered entity uses or main- months after the date of the enactment of business associate with respect to such viola- tains an electronic health record with re- tion in the same manner as such provisions spect to protected health information— this section. apply to a person who violates a provision of (A) the exception under paragraph (a)(1)(i) (e) PROHIBITION ON SALE OF ELECTRONIC part C of title XI of such Act. of such section shall not apply to disclosures HEALTH RECORDS OR PROTECTED HEALTH IN- SEC. 13405. RESTRICTIONS ON CERTAIN DISCLO- through an electronic health record made by FORMATION OBTAINED FROM ELECTRONIC SURES AND SALES OF HEALTH IN- such entity of such information; and HEALTH RECORDS.— FORMATION; ACCOUNTING OF CER- (B) an individual shall have a right to re- (1) IN GENERAL.—Except as provided in TAIN PROTECTED HEALTH INFOR- ceive an accounting of disclosures described MATION DISCLOSURES; ACCESS TO paragraph (2), a covered entity or business CERTAIN INFORMATION IN ELEC- in such paragraph of such information made associate shall not directly or indirectly re- TRONIC FORMAT. by such covered entity during only the three ceive remuneration in exchange for any pro- (a) REQUESTED RESTRICTIONS ON CERTAIN years prior to the date on which the account- tected health information of an individual DISCLOSURES OF HEALTH INFORMATION.—In ing is requested. unless the covered entity obtained from the the case that an individual requests under (2) REGULATIONS.—The Secretary shall pro- individual, in accordance with section 164.508 paragraph (a)(1)(i)(A) of section 164.522 of mulgate regulations on what information of title 45, Code of Federal Regulations, a title 45, Code of Federal Regulations, that a shall be collected about each disclosure re- valid authorization that includes, in accord- covered entity restrict the disclosure of the ferred to in paragraph (1)(A) not later than ance with such section, a specification of protected health information of the indi- 18 months after the date on which the Sec- whether the protected health information vidual, notwithstanding paragraph (a)(1)(ii) retary adopts standards on accounting for can be further exchanged for remuneration of such section, the covered entity must disclosure described in the section by the entity receiving protected health in- comply with the requested restriction if— 3002(b)(2)(B)(iv) of the Public Health Service formation of that individual. (1) except as otherwise required by law, the Act, as added by section 13101. Such regula- (2) EXCEPTIONS.—Paragraph (1) shall not disclosure is to a health plan for purposes of tions shall only require such information to apply in the following cases: carrying out payment or health care oper- be collected through an electronic health (A) The purpose of the exchange is for re- ations (and is not for purposes of carrying record in a manner that takes into account search or public health activities (as de- out treatment); and the interests of individuals in learning the scribed in sections 164.501, 164.512(i), and (2) the protected health information per- circumstances under which their protected 164.512(b) of title 45, Code of Federal Regula- tains solely to a health care item or service health information is being disclosed and tions) and the price charged reflects the for which the health care provider involved takes into account the administrative bur- costs of preparation and transmittal of the has been paid out of pocket in full. den of accounting for such disclosures. data for such purpose. ISCLOSURES REQUIRED TO BE LIMITED (b) D (3) CONSTRUCTION.—Nothing in this sub- (B) The purpose of the exchange is for the TO THE LIMITED DATA SET OR THE MINIMUM section shall be construed as— treatment of the individual and the price NECESSARY.— (A) requiring a covered entity to account charges reflects not more than the costs of (1) IN GENERAL.— for disclosures of protected health informa- preparation and transmittal of the data for (A) IN GENERAL.—Subject to subparagraph tion that are not made by such covered enti- such purpose. (B), a covered entity shall be treated as ty; or (C) The purpose of the exchange is the being in compliance with section 164.502(b)(1) (B) requiring a business associate of a cov- health care operation specifically described of title 45, Code of Federal Regulations, with ered entity to account for disclosures of pro- in subparagraph (iv) of paragraph (6) of the respect to the use, disclosure, or request of tected health information that are not made definition of healthcare operations in section protected health information described in by such business associate. 164.501 of title 45, Code of Federal Regula- such section, only if the covered entity lim- (4) REASONABLE FEE.—A covered entity tions. its such protected health information, to the may impose a reasonable fee on an indi- (D) The purpose of the exchange is for re- extent practicable, to the limited data set vidual for an accounting performed under muneration that is provided by a covered en- (as defined in section 164.514(e)(2) of such paragraph (1)(B). Any such fee shall not be tity to a business associate for activities in- title) or, if needed by such entity, to the greater than the entity’s labor costs in re- volving the exchange of protected health in- minimum necessary to accomplish the in- sponding to the request. formation that the business associate under- tended purpose of such use, disclosure, or re- (5) EFFECTIVE DATE.— takes on behalf of and at the specific request quest, respectively. (A) CURRENT USERS OF ELECTRONIC of the covered entity pursuant to a business (B) GUIDANCE.—Not later than 18 months RECORDS.—In the case of a covered entity in- associate agreement. after the date of the enactment of this sec- sofar as it acquired an electronic health (E) The purpose of the exchange is to pro- tion, the Secretary shall issue guidance on record as of January 1, 2009, paragraph (1) vide an individual with a copy of the individ- what constitutes ‘‘minimum necessary’’ for shall apply to disclosures, with respect to ual’s protected health information pursuant purposes of subpart E of part 164 of title 45, protected health information, made by the to section 164.524 of title 45, Code of Federal Code of Federal Regulation. In issuing such covered entity from such a record on and Regulations. guidance the Secretary shall take into con- after January 1, 2014. (F) The purpose of the exchange is other- sideration the guidance under section (B) OTHERS.—In the case of a covered enti- wise determined by the Secretary in regula- 13424(c). ty insofar as it acquires an electronic health tions to be similarly necessary and appro- (C) SUNSET.—Subparagraph (A) shall not record after January 1, 2010, paragraph (1) priate as the exceptions provided in subpara- apply on and after the effective date on shall apply to disclosures, with respect to graphs (A) through (E). which the Secretary issues the guidance protected health information, made by the (3) REGULATIONS.—The Secretary shall pro- under subparagraph (B). covered entity from such record on and after mulgate regulations to carry out this sub- (2) DETERMINATION OF MINIMUM NEC- the later of the following: section, including exceptions described in ESSARY.—For purposes of paragraph (1), in (i) January 1, 2011; or paragraph (2), not later than 18 months after the case of the disclosure of protected health (ii) the date that it acquires an electronic the date of the enactment of this title. information, the covered entity or business health record. (4) EFFECTIVE DATE.—Paragraph (1) shall associate disclosing such information shall (d) REVIEW OF HEALTH CARE OPERATIONS.— apply to exchanges occurring on or after the determine what constitutes the minimum Not later than 18 months after the date of date that is 6 months after the date of the necessary to accomplish the intended pur- the enactment of this title, the Secretary promulgation of final regulations imple- pose of such disclosure. shall promulgate regulations to eliminate menting this subsection. (3) APPLICATION OF EXCEPTIONS.—The ex- from the definition of health care operations ceptions described in section 164.502(b)(2) of under section 164.501 of title 45, Code of Fed- (f) ACCESS TO CERTAIN INFORMATION IN title 45, Code of Federal Regulations, shall eral Regulations, those activities that can ELECTRONIC FORMAT.—In applying section apply to the requirement under paragraph (1) reasonably and efficiently be conducted 164.524 of title 45, Code of Federal Regula- as of the effective date described in section through the use of information that is de- tions, in the case that a covered entity uses 13423 in the same manner that such excep- identified (in accordance with the require- or maintains an electronic health record tions apply to section 164.502(b)(1) of such ments of section 164.514(b) of such title) or with respect to protected health information title before such date. that should require a valid authorization for of an individual—

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00065 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.042 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1168 CONGRESSIONAL RECORD — SENATE January 30, 2009 (1) the individual shall have a right to ob- (2) notify the Federal Trade Commission. indecipherable to unauthorized individuals tain from such covered entity a copy of such (b) NOTIFICATION BY THIRD PARTY SERVICE and that is developed or endorsed by a stand- information in an electronic format; and PROVIDERS.—A third party service provider ards developing organization that is accred- (2) notwithstanding paragraph (c)(4) of that provides services to a vendor of personal ited by the American National Standards In- such section, any fee that the covered entity health records or to an entity described in stitute. may impose for providing such individual clause (ii) or (iii) of section 13424(b)(1)(A) in (g) REGULATIONS; EFFECTIVE DATE; SUN- with a copy of such information (or a sum- connection with the offering or maintenance SET.— mary or explanation of such information) if of a personal health record or a related prod- (1) REGULATIONS; EFFECTIVE DATE.—To such copy (or summary or explanation) is in uct or service and that accesses, maintains, carry out this section, the Secretary of an electronic form shall not be greater than retains, modifies, records, stores, destroys, Health and Human Services shall promulgate the entity’s labor costs in responding to the or otherwise holds, uses, or discloses unse- interim final regulations by not later than request for the copy (or summary or expla- cured PHR identifiable health information in the date that is 180 days after the date of the nation). such a record as a result of such services enactment of this section. The provisions of SEC. 13406. CONDITIONS ON CERTAIN CONTACTS shall, following the discovery of a breach of this section shall apply to breaches of secu- AS PART OF HEALTH CARE OPER- security of such information, notify such rity that are discovered on or after the date ATIONS. vendor or entity, respectively, of such that is 30 days after the date of publication (a) MARKETING.— breach. Such notice shall include the identi- of such interim final regulations. N GENERAL (1) I .—A communication by a fication of each individual whose unsecured (2) SUNSET.—The provisions of this section covered entity or business associate that is PHR identifiable health information has shall not apply to breaches of security occur- about a product or service and that encour- been, or is reasonably believed to have been, ring on or after the earlier of the following ages recipients of the communication to pur- accessed, acquired, or disclosed during such the dates: chase or use the product or service shall not breach. (A) The date on which a standard relating be considered a health care operation for (c) APPLICATION OF REQUIREMENTS FOR to requirements for entities that are not cov- purposes of subpart E of part 164 of title 45, TIMELINESS, METHOD, AND CONTENT OF NOTI- ered entities that includes requirements re- Code of Federal Regulations, unless the com- FICATIONS.—Subsections (c), (d), (e), and (f) of lating to breach notification has been pro- munication is made as described in subpara- section 13402 shall apply to a notification re- mulgated by the Secretary. graph (i), (ii), or (iii) of paragraph (1) of the quired under subsection (a) and a vendor of (B) The date on which a standard relating definition of marketing in section 164.501 of personal health records, an entity described to requirements for entities that are not cov- such title. in subsection (a) and a third party service ered entities that includes requirements re- (2) PAYMENT FOR CERTAIN COMMUNICA- provider described in subsection (b), with re- lating to breach notification has been pro- TIONS.—A covered entity or business asso- spect to a breach of security under sub- mulgated by the Federal Trade Commission ciate may not receive direct or indirect pay- section (a) of unsecured PHR identifiable and has taken effect. ment in exchange for making any commu- health information in such records main- nication described in subparagraph (i), (ii), tained or offered by such vendor, in a man- SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES. or (iii) of paragraph (1) of the definition of ner specified by the Federal Trade Commis- Each organization, with respect to a cov- marketing in section 164.501 of title 45, Code sion. ered entity, that provides data transmission of Federal Regulations, except— (d) NOTIFICATION OF THE SECRETARY.—Upon (A) a business associate of a covered entity receipt of a notification of a breach of secu- of protected health information to such enti- may receive payment from the covered enti- rity under subsection (a)(2), the Federal ty (or its business associate) and that re- ty for making any such communication on Trade Commission shall notify the Secretary quires access on a routine basis to such pro- behalf of the covered entity that is con- of such breach. tected health information, such as a Health sistent with the written contract (or other (e) ENFORCEMENT.—A violation of sub- Information Exchange Organization, Re- written arrangement) described in section section (a) or (b) shall be treated as an unfair gional Health Information Organization, E- 164.502(e)(2) of such title between such busi- and deceptive act or practice in violation of prescribing Gateway, or each vendor that ness associate and covered entity; a regulation under section 18(a)(1)(B) of the contracts with a covered entity to allow that (B) a covered entity may receive payment Federal Trade Commission Act (15 U.S.C. covered entity to offer a personal health in exchange for making any such commu- 57a(a)(1)(B)) regarding unfair or deceptive record to patients as part of its electronic nication if the entity obtains from the re- acts or practices. health record, is required to enter into a cipient of the communication, in accordance (f) DEFINITIONS.—For purposes of this sec- written contract (or other written arrange- with section 164.508 of title 45, Code of Fed- tion: ment) described in section 164.502(e)(2) of eral Regulations, a valid authorization (as (1) BREACH OF SECURITY.—The term title 45, Code of Federal Regulations and a described in paragraph (b) of such section) ‘‘breach of security’’ means, with respect to written contract (or other arrangement) de- with respect to such communication; and unsecured PHR identifiable health informa- scribed in section 164.308(b) of such title, (C) where such communication describes tion of an individual in a personal health with such entity and shall be treated as a only a health care item or service that has record, acquisition of such information with- business associate of the covered entity for previously been prescribed for or adminis- out the authorization of the individual. purposes of the provisions of this subtitle tered to the recipient of the communication, (2) PHR IDENTIFIABLE HEALTH INFORMA- and subparts C and E of part 164 of title 45, or a family member of such recipient. TION.—The term ‘‘PHR identifiable health in- Code of Federal Regulations, as such provi- (b) FUNDRAISING.—Fundraising for the ben- formation’’ means individually identifiable sions are in effect as of the date of enact- efit of a covered entity shall not be consid- health information, as defined in section ment of this title. ered a health care operation for purposes of 1171(6) of the Social Security Act (42 U.S.C. SEC. 13409. CLARIFICATION OF APPLICATION OF section 164.501 of title 45, Code of Federal 1320d(6)), and includes, with respect to an in- WRONGFUL DISCLOSURES CRIMI- Regulations. dividual, information— NAL PENALTIES. (c) EFFECTIVE DATE.—This section shall (A) that is provided by or on behalf of the Section 1177(a) of the Social Security Act apply to contracting occurring on or after individual; and (42 U.S.C. 1320d–6(a)) is amended by adding at the effective date specified under section (B) that identifies the individual or with the end the following new sentence: ‘‘For 13423. respect to which there is a reasonable basis purposes of the previous sentence, a person SEC. 13407. TEMPORARY BREACH NOTIFICATION to believe that the information can be used (including an employee or other individual) REQUIREMENT FOR VENDORS OF to identify the individual. shall be considered to have obtained or dis- PERSONAL HEALTH RECORDS AND (3) UNSECURED PHR IDENTIFIABLE HEALTH IN- closed individually identifiable health infor- OTHER NON-HIPAA COVERED ENTI- mation in violation of this part if the infor- TIES. FORMATION.— mation is maintained by a covered entity (as (a) IN GENERAL.—In accordance with sub- (A) IN GENERAL.—Subject to subparagraph defined in the HIPAA privacy regulation de- section (c), each vendor of personal health (B), the term ‘‘unsecured PHR identifiable records, following the discovery of a breach health information’’ means PHR identifiable scribed in section 1180(b)(3)) and the indi- of security of unsecured PHR identifiable health information that is not protected vidual obtained or disclosed such informa- health information that is in a personal through the use of a technology or method- tion without authorization.’’. health record maintained or offered by such ology specified by the Secretary in the guid- SEC. 13410. IMPROVED ENFORCEMENT. vendor, and each entity described in clause ance issued under section 13402(h)(2). (a) IN GENERAL.—Section 1176 of the Social (ii) or (iii) of section 13424(b)(1)(A), following (B) EXCEPTION IN CASE TIMELY GUIDANCE Security Act (42 U.S.C. 1320d-5) is amended— the discovery of a breach of security of such NOT ISSUED.—In the case that the Secretary (1) in subsection (b)(1), by striking ‘‘the act information that is obtained through a prod- does not issue guidance under section constitutes an offense punishable under sec- uct or service provided by such entity, 13402(h)(2) by the date specified in such sec- tion 1177’’ and inserting ‘‘a penalty has been shall— tion, for purposes of this section, the term imposed under section 1177 with respect to (1) notify each individual who is a citizen ‘‘unsecured PHR identifiable health informa- such act’’; and or resident of the United States whose unse- tion’’ shall mean PHR identifiable health in- (2) by adding at the end the following new cured PHR identifiable health information formation that is not secured by a tech- subsection: was acquired by an unauthorized person as a nology standard that renders protected ‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NE- result of such a breach of security; and health information unusable, unreadable, or GLECT.—

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‘‘(1) IN GENERAL.—A violation of a provi- violation of an amount that is at least the lieve that an interest of one or more of the sion of this part due to willful neglect is a amount described in paragraph (3)(B) but not residents of that State has been or is threat- violation for which the Secretary is required to exceed the amount described in paragraph ened or adversely affected by any person who to impose a penalty under subsection (a)(1). (3)(D); and violates a provision of this part, the attor- ‘‘(2) REQUIRED INVESTIGATION.—For pur- ‘‘(C) in the case of a violation of such pro- ney general of the State, as parens patriae, poses of paragraph (1), the Secretary shall vision in which it is established that the vio- may bring a civil action on behalf of such formally investigate any complaint of a vio- lation was due to willful neglect— residents of the State in a district court of lation of a provision of this part if a prelimi- ‘‘(i) if the violation is corrected as de- the United States of appropriate jurisdic- nary investigation of the facts of the com- scribed in subsection (b)(3)(A), a penalty in tion— plaint indicate such a possible violation due an amount that is at least the amount de- ‘‘(A) to enjoin further such violation by to willful neglect.’’. scribed in paragraph (3)(C) but not to exceed the defendant; or (b) EFFECTIVE DATE; REGULATIONS.— the amount described in paragraph (3)(D); ‘‘(B) to obtain damages on behalf of such (1) The amendments made by subsection and residents of the State, in an amount equal to (a) shall apply to penalties imposed on or ‘‘(ii) if the violation is not corrected as de- the amount determined under paragraph (2). after the date that is 24 months after the scribed in such subsection, a penalty in an ‘‘(2) STATUTORY DAMAGES.— date of the enactment of this title. amount that is at least the amount described ‘‘(A) IN GENERAL.—For purposes of para- (2) Not later than 18 months after the date in paragraph (3)(D). graph (1)(B), the amount determined under of the enactment of this title, the Secretary ‘‘In determining the amount of a penalty this paragraph is the amount calculated by of Health and Human Services shall promul- under this section for a violation, the Sec- multiplying the number of violations by up gate regulations to implement such amend- retary shall base such determination on the to $100. For purposes of the preceding sen- ments. nature and extent of the violation and the tence, in the case of a continuing violation, (c) DISTRIBUTION OF CERTAIN CIVIL MONE- nature and extent of the harm resulting from the number of violations shall be determined TARY PENALTIES COLLECTED.— such violation.’’. consistent with the HIPAA privacy regula- (1) IN GENERAL.—Subject to the regulation (2) TIERS OF PENALTIES DESCRIBED.—Sec- tions (as defined in section 1180(b)(3)) for vio- promulgated pursuant to paragraph (3), any tion 1176(a) of such Act (42 U.S.C. 1320d-5(a)) lations of subsection (a). civil monetary penalty or monetary settle- is further amended by adding at the end the ment collected with respect to an offense following new paragraph: ‘‘(B) LIMITATION.—The total amount of damages imposed on the person for all viola- punishable under this subtitle or section 1176 ‘‘(3) TIERS OF PENALTIES DESCRIBED.—For of the Social Security Act (42 U.S.C. 1320d-5) purposes of paragraph (1), with respect to a tions of an identical requirement or prohibi- insofar as such section relates to privacy or violation by a person of a provision of this tion during a calendar year may not exceed security shall be transferred to the Office of part— $25,000. Civil Rights of the Department of Health and ‘‘(A) the amount described in this subpara- ‘‘(C) REDUCTION OF DAMAGES.—In assessing Human Services to be used for purposes of graph is $100 for each such violation, except damages under subparagraph (A), the court enforcing the provisions of this subtitle and that the total amount imposed on the person may consider the factors the Secretary may subparts C and E of part 164 of title 45, Code for all such violations of an identical re- consider in determining the amount of a of Federal Regulations, as such provisions quirement or prohibition during a calendar civil money penalty under subsection (a) are in effect as of the date of enactment of year may not exceed $25,000; under the HIPAA privacy regulations. this Act. ‘‘(B) the amount described in this subpara- ‘‘(3) ATTORNEY FEES.—In the case of any (2) GAO REPORT.—Not later than 18 months graph is $1,000 for each such violation, except successful action under paragraph (1), the after the date of the enactment of this title, that the total amount imposed on the person court, in its discretion, may award the costs the Comptroller General shall submit to the for all such violations of an identical re- of the action and reasonable attorney fees to Secretary a report including recommenda- quirement or prohibition during a calendar the State. tions for a methodology under which an indi- year may not exceed $100,000; ‘‘(4) NOTICE TO SECRETARY.—The State vidual who is harmed by an act that con- ‘‘(C) the amount described in this subpara- shall serve prior written notice of any action stitutes an offense referred to in paragraph graph is $10,000 for each such violation, ex- under paragraph (1) upon the Secretary and (1) may receive a percentage of any civil cept that the total amount imposed on the provide the Secretary with a copy of its com- monetary penalty or monetary settlement person for all such violations of an identical plaint, except in any case in which such collected with respect to such offense. requirement or prohibition during a calendar prior notice is not feasible, in which case the (3) ESTABLISHMENT OF METHODOLOGY TO DIS- year may not exceed $250,000; and State shall serve such notice immediately TRIBUTE PERCENTAGE OF CMPS COLLECTED TO ‘‘(D) the amount described in this subpara- upon instituting such action. The Secretary HARMED INDIVIDUALS.—Not later than 3 years graph is $50,000 for each such violation, ex- shall have the right— after the date of the enactment of this title, cept that the total amount imposed on the ‘‘(A) to intervene in the action; the Secretary shall establish by regulation person for all such violations of an identical ‘‘(B) upon so intervening, to be heard on all and based on the recommendations sub- requirement or prohibition during a calendar matters arising therein; and mitted under paragraph (2), a methodology year may not exceed $1,500,000.’’. ‘‘(C) to file petitions for appeal. under which an individual who is harmed by (3) CONFORMING AMENDMENTS.—Section ‘‘(5) CONSTRUCTION.—For purposes of bring- an act that constitutes an offense referred to 1176(b) of such Act (42 U.S.C. 1320d-5(b)) is ing any civil action under paragraph (1), in paragraph (1) may receive a percentage of amended— nothing in this section shall be construed to any civil monetary penalty or monetary set- (A) by striking paragraph (2) and redesig- prevent an attorney general of a State from tlement collected with respect to such of- nating paragraphs (3) and (4) as paragraphs exercising the powers conferred on the attor- fense. (2) and (3), respectively; and ney general by the laws of that State. (4) APPLICATION OF METHODOLOGY.—The (B) in paragraph (2), as so redesignated— ‘‘(6) VENUE; SERVICE OF PROCESS.— methodology under paragraph (3) shall be ap- (i) in subparagraph (A), by striking ‘‘in ‘‘(A) VENUE.—Any action brought under plied with respect to civil monetary pen- subparagraph (B), a penalty may not be im- paragraph (1) may be brought in the district alties or monetary settlements imposed on posed under subsection (a) if’’ and all that court of the United States that meets appli- or after the effective date of the regulation. follows through ‘‘the failure to comply is cable requirements relating to venue under (d) TIERED INCREASE IN AMOUNT OF CIVIL corrected’’ and inserting ‘‘in subparagraph section 1391 of title 28, United States Code. MONETARY PENALTIES.— (B) or subsection (a)(1)(C), a penalty may not ‘‘(B) SERVICE OF PROCESS.—In an action (1) IN GENERAL.—Section 1176(a)(1) of the be imposed under subsection (a) if the failure brought under paragraph (1), process may be Social Security Act (42 U.S.C. 1320d-5(a)(1)) is to comply is corrected’’; and served in any district in which the defend- amended by striking ‘‘who violates a provi- (ii) in subparagraph (B), by striking ant— sion of this part a penalty of not more than’’ ‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it ‘‘(i) is an inhabitant; or and all that follows and inserting the fol- appears. ‘‘(ii) maintains a physical place of busi- lowing: ‘‘who violates a provision of this (4) EFFECTIVE DATE.—The amendments ness. part— made by this subsection shall apply to viola- ‘‘(7) LIMITATION ON STATE ACTION WHILE ‘‘(A) in the case of a violation of such pro- tions occurring after the date of the enact- FEDERAL ACTION IS PENDING.—If the Secretary vision in which it is established that the per- ment of this title. has instituted an action against a person son did not know (and by exercising reason- (e) ENFORCEMENT THROUGH STATE ATTOR- under subsection (a) with respect to a spe- able diligence would not have known) that NEYS GENERAL.— cific violation of this part, no State attorney such person violated such provision, a pen- (1) IN GENERAL.—Section 1176 of the Social general may bring an action under this sub- alty for each such violation of an amount Security Act (42 U.S.C. 1320d–5) is amended section against the person with respect to that is at least the amount described in by adding at the end the following new sub- such violation during the pendency of that paragraph (3)(A) but not to exceed the section: action. amount described in paragraph (3)(D); ‘‘(d) ENFORCEMENT BY STATE ATTORNEYS ‘‘(8) APPLICATION OF CMP STATUTE OF LIMI- ‘‘(B) in the case of a violation of such pro- GENERAL.— TATION.—A civil action may not be instituted vision in which it is established that the vio- ‘‘(1) CIVIL ACTION.—Except as provided in with respect to a violation of this part unless lation was due to reasonable cause and not subsection (b), in any case in which the at- an action to impose a civil money penalty to willful neglect, a penalty for each such torney general of a State has reason to be- may be instituted under subsection (a) with

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00067 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.042 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1170 CONGRESSIONAL RECORD — SENATE January 30, 2009 respect to such violation consistent with the SEC. 13422. REGULATORY REFERENCES. (ii) entities that offer products or services second sentence of section 1128A(c)(1).’’. Each reference in this subtitle to a provi- through the website of a vendor of personal (2) CONFORMING AMENDMENTS.—Subsection sion of the Code of Federal Regulations re- health records; (b) of such section, as amended by subsection fers to such provision as in effect on the date (iii) entities that are not covered entities (d)(3), is amended— of the enactment of this title (or to the most and that offer products or services through (A) in paragraph (1), by striking ‘‘A pen- recent update of such provision). the websites of covered entities that offer in- alty may not be imposed under subsection SEC. 13423. EFFECTIVE DATE. dividuals personal health records; (a)’’ and inserting ‘‘No penalty may be im- Except as otherwise specifically provided, (iv) entities that are not covered entities posed under subsection (a) and no damages the provisions of part I shall take effect on and that access information in a personal obtained under subsection (d)’’; the date that is 12 months after the date of health record or send information to a per- (B) in paragraph (2)(A)— the enactment of this title. sonal health record; and (i) after ‘‘subsection (a)(1)(C),’’, by striking SEC. 13424. STUDIES, REPORTS, GUIDANCE. (v) third party service providers used by a ‘‘a penalty may not be imposed under sub- (a) REPORT ON COMPLIANCE.— vendor or entity described in clause (i), (ii), section (a)’’ and inserting ‘‘no penalty may (1) IN GENERAL.—For the first year begin- (iii), or (iv) to assist in providing personal be imposed under subsection (a) and no dam- ning after the date of the enactment of this health record products or services; ages obtained under subsection (d)’’; and Act and annually thereafter, the Secretary (B) a determination of which Federal gov- (ii) in clause (ii), by inserting ‘‘or dam- shall prepare and submit to the Committee ernment agency is best equipped to enforce ages’’ after ‘‘the penalty’’; on Health, Education, Labor, and Pensions of such requirements recommended to be ap- (C) in paragraph (2)(B)(i), by striking ‘‘The the Senate and the Committee on Ways and plied to such vendors, entities, and service period’’ and inserting ‘‘With respect to the Means and the Committee on Energy and providers under subparagraph (A); and imposition of a penalty by the Secretary Commerce of the House of Representatives a (C) a timeframe for implementing regula- under subsection (a), the period’’; and report concerning complaints of alleged vio- tions based on such findings. (D) in paragraph (3), by inserting ‘‘and any lations of law, including the provisions of (2) REPORT.—The Secretary shall submit to damages under subsection (d)’’ after ‘‘any this subtitle as well as the provisions of sub- the Committee on Finance, the Committee penalty under subsection (a)’’. parts C and E of part 164 of title 45, Code of on Health, Education, Labor, and Pensions, (3) EFFECTIVE DATE.—The amendments Federal Regulations, (as such provisions are and the Committee on Commerce of the Sen- made by this subsection shall apply to viola- in effect as of the date of enactment of this ate and the Committee on Ways and Means tions occurring after the date of the enact- Act) relating to privacy and security of and the Committee on Energy and Commerce ment of this Act. health information that are received by the of the House of Representatives a report on (f) ALLOWING CONTINUED USE OF CORREC- Secretary during the year for which the re- the findings of the study under paragraph (1) TIVE ACTION.—Such section is further amend- port is being prepared. Each such report and shall include in such report rec- ed by adding at the end the following new shall include, with respect to such com- ommendations on the privacy and security subsection: plaints received during the year— requirements described in such paragraph. ‘‘(e) ALLOWING CONTINUED USE OF CORREC- (A) the number of such complaints; (c) GUIDANCE ON IMPLEMENTATION SPECI- TIVE ACTION.—Nothing in this section shall (B) the number of such complaints resolved FICATION TO DE-IDENTIFY PROTECTED HEALTH be construed as preventing the Office of Civil INFORMATION.—Not later than 12 months Rights of the Department of Health and informally, a summary of the types of such complaints so resolved, and the number of after the date of the enactment of this title, Human Services from continuing, in its dis- the Secretary shall, in consultation with cretion, to use corrective action without a covered entities that received technical as- sistance from the Secretary during such year stakeholders, issue guidance on how best to penalty in cases where the person did not implement the requirements for the de-iden- know (and by exercising reasonable diligence in order to achieve compliance with such provisions and the types of such technical tification of protected health information would not have known) of the violation in- under section 164.514(b) of title 45, Code of volved.’’. assistance provided; (C) the number of such complaints that Federal Regulations. SEC. 13411. AUDITS. (d) GAO REPORT ON TREATMENT DISCLO- The Secretary shall provide for periodic have resulted in the imposition of civil mon- etary penalties or have been resolved SURES.—Not later than one year after the audits to ensure that covered entities and date of the enactment of this title, the business associates that are subject to the through monetary settlements, including the nature of the complaints involved and the Comptroller General of the United States requirements of this subtitle and subparts C shall submit to the Committee on Health, and E of part 164 of title 45, Code of Federal amount paid in each penalty or settlement; Education, Labor, and Pensions of the Sen- Regulations, as such provisions are in effect (D) the number of compliance reviews con- ate and the Committee on Ways and Means as of the date of enactment of this Act, com- ducted and the outcome of each such review; and the Committee on Energy and Commerce ply with such requirements. (E) the number of subpoenas or inquiries of the House of Representatives a report on PART II—RELATIONSHIP TO OTHER LAWS; issued; (F) the Secretary’s plan for improving the best practices related to the disclosure REGULATORY REFERENCES; EFFECTIVE among health care providers of protected DATE; REPORTS compliance with and enforcement of such provisions for the following year; and health information of an individual for pur- SEC. 13421. RELATIONSHIP TO OTHER LAWS. (G) the number of audits performed and a poses of treatment of such individual. Such (a) APPLICATION OF HIPAA STATE PREEMP- summary of audit findings pursuant to sec- report shall include an examination of the TION.—Section 1178 of the Social Security tion 13411. best practices implemented by States and by Act (42 U.S.C. 1320d–7) shall apply to a provi- other entities, such as health information (2) AVAILABILITY TO PUBLIC.—Each report sion or requirement under this subtitle in exchanges and regional health information the same manner that such section applies under paragraph (1) shall be made available to the public on the Internet website of the organizations, an examination of the extent to a provision or requirement under part C of to which such best practices are successful title XI of such Act or a standard or imple- Department of Health and Human Services. (b) STUDY AND REPORT ON APPLICATION OF with respect to the quality of the resulting mentation specification adopted or estab- health care provided to the individual and lished under sections 1172 through 1174 of PRIVACY AND SECURITY REQUIREMENTS TO NON-HIPAA COVERED ENTITIES.— with respect to the ability of the health care such Act. provider to manage such best practices, and (b) HEALTH INSURANCE PORTABILITY AND (1) STUDY.—Not later than one year after the date of the enactment of this title, the an examination of the use of electronic in- ACCOUNTABILITY ACT.—The standards gov- formed consent for disclosing protected erning the privacy and security of individ- Secretary, in consultation with the Federal Trade Commission, shall conduct a study, health information for treatment, payment, ually identifiable health information pro- and health care operations. mulgated by the Secretary under sections and submit a report under paragraph (2), on 262(a) and 264 of the Health Insurance Port- privacy and security requirements for enti- TITLE XIV—STATE FISCAL ability and Accountability Act of 1996 shall ties that are not covered entities or business STABILIZATION remain in effect to the extent that they are associates as of the date of the enactment of DEPARTMENT OF EDUCATION consistent with this subtitle. The Secretary this title, including— STATE FISCAL STABILIZATION FUND (A) requirements relating to security, pri- shall by rule amend such Federal regulations For necessary expenses for a State Fiscal vacy, and notification in the case of a breach as required to make such regulations con- Stabilization Fund, $79,000,000,000, which of security or privacy (including the applica- sistent with this subtitle. In carrying out the shall be administered by the Department of bility of an exemption to notification in the preceding sentence, the Secretary shall re- Education, and shall be available through case of individually identifiable health infor- vise the definition of ‘‘psychotherapy notes’’ September 30, 2010. in section 164.501 of title 45, Code of Federal mation that has been rendered unusable, Regulations, to include test data that is re- unreadable, or indecipherable through tech- GENERAL PROVISIONS—THIS TITLE lated to direct responses, scores, items, nologies or methodologies recognized by ap- SEC. 1401. ALLOCATIONS. forms, protocols, manuals, or other mate- propriate professional organization or stand- (a) OUTLYING AREAS.—The Secretary of rials that are part of a mental health evalua- ard setting bodies to provide effective secu- Education shall first allocate one-half of 1 tion, as determined by the mental health rity for the information) that should be ap- percent to the outlying areas on the basis of professional providing treatment or evalua- plied to— their respective needs, as determined by the tion. (i) vendors of personal health records; Secretary, for activities consistent with this

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00068 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.042 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1171 title under such terms and conditions as the use the funds for any activity authorized by principals in high-poverty schools and local Secretary may determine. the Elementary and Secondary Education educational agencies throughout the State. (b) ADMINISTRATION AND OVERSIGHT.—The Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), (3) IMPROVING COLLECTION AND USE OF Secretary may reserve up to $25,000,000 for the Individuals with Disabilities Education DATA.—The State will establish a longitu- administration and oversight of this title, Act (20 U.S.C. 1400 et seq.) (‘‘IDEA’’), or the dinal data system that includes the elements including for program evaluation. Carl D. Perkins Career and Technical Edu- described in section 6401(e)(2)(D) of the (c) RESERVATION FOR ADDITIONAL PRO- cation Act of 2006 (20 U.S.C. 2301 et seq.) America COMPETES Act (20 U.S.C. 9871). GRAMS.—After reserving funds under sub- (‘‘the Perkins Act’’). (4) STANDARDS AND ASSESSMENTS.—The sections (a) and (b), the Secretary shall re- (b) PROHIBITION.—A local educational agen- State— serve $15,000,000,000 for grants under sections cy may not use funds received under this (A) will enhance the quality of academic 1406 and 1407. title for capital projects unless authorized by assessments described in section 1111(b)(3) of (d) STATE ALLOCATIONS.—After carrying ESEA, IDEA, or the Perkins Act. ESEA (20 U.S.C. 6311(b)(3)) through activities out subsections (a), (b), and (c), the Sec- SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF such as those described in section 6112(a) of retary shall allocate the remaining funds such Act (20 U.S.C. 7301a(a)); made available to carry out this title to the HIGHER EDUCATION. (a) IN GENERAL.—A public institution of (B) will comply with the requirements of States as follows: paragraphs (3)(C)(ix) and (6) of section 1111(b) (1) 61 percent on the basis of their relative higher education that receives funds under of ESEA (20 U.S.C. 6311(b)) and section population of individuals aged 5 through 24. this title shall use the funds for education 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) re- (2) 39 percent on the basis of their relative and general expenditures, and in such a way lated to the inclusion of children with dis- total population. as to mitigate the need to raise tuition and abilities and limited English proficient stu- (e) STATE GRANTS.—From funds allocated fees for in-State students. under subsection (d), the Secretary shall (b) PROHIBITION.—An institution of higher dents in State assessments, the development make grants to the Governor of each State. education may not use funds received under of valid and reliable assessments for those (f) REALLOCATION.—The Governor shall re- this title to increase its endowment. students, and the provision of accommoda- turn to the Secretary any funds received (c) ADDITIONAL PROHIBITION.—An institu- tions that enable their participation in State under subsection (e) that the Governor does tion of higher education may not use funds assessments; and not obligate within 1 year of receiving a received under this title for construction, (C) will take steps to improve State aca- grant, and the Secretary shall reallocate renovation, or facility repair. demic content standards and student aca- such funds to the remaining States in ac- SEC. 1405. STATE APPLICATIONS. demic achievement standards consistent with 6401(e)(1)(A)(ii) of the America COM- cordance with subsection (d). (a) IN GENERAL.—The Governor of a State PETES Act. SEC. 1402. STATE USES OF FUNDS. desiring to receive an allocation under sec- (5) will ensure compliance with the re- (a) EDUCATION FUND.— tion 1401 shall submit an application at such quirements of section 1116(a)(7)(C)(iv) and (1) IN GENERAL.—The Governor shall use at time, in such manner, and containing such section 1116(a)(8)(B) with respect to schools least 61 percent of the State’s allocation information as the Secretary may reason- identified under such sections. under section 1401 for the support of elemen- ably require. SEC. 1406. STATE INCENTIVE GRANTS. tary, secondary, and postsecondary edu- (b) APPLICATION.—The Governor shall— cation and, as applicable, early childhood (1) include the assurances described in sub- (a) IN GENERAL.—From the total amount education programs and services. section (d); reserved under section 1401(c) that is not used for section 1407, the Secretary shall, in (2) RESTORING 2008 STATE SUPPORT FOR EDU- (2) provide baseline data that demonstrates fiscal year 2010, make grants to States that CATION.— the State’s current status in each of the have made significant progress in meeting (A) IN GENERAL.—The Governor shall first areas described in such assurances; and the objectives of paragraphs (2), (3), (4), and use the funds described in paragraph (1)— (3) describe how the State intends to use (5) of section 1405(d). (i) to provide the amount of funds, through its allocation. the State’s principal elementary and sec- (b) BASIS FOR GRANTS.—The Secretary (c) INCENTIVE GRANT APPLICATION.—The ondary funding formula, that is needed to re- shall determine which States receive grants Governor of a State seeking a grant under under this section, and the amount of those store State support for elementary and sec- section 1406 shall— ondary education to the fiscal year 2008 grants, on the basis of information provided (1) submit an application for consideration; level; and where applicable, to allow existing in State applications under section 1405 and (2) describe the status of the State’s State formula increases for fiscal years 2009, such other criteria as the Secretary deter- progress in each of the areas described in 2010, and 2011 to be implemented and allow mines appropriate. subsection (d); funding for phasing in State equity and ade- (c) SUBGRANTS TO LOCAL EDUCATIONAL (3) describe the achievement and gradua- quacy adjustments that were enacted prior AGENCIES.—Each State receiving a grant tion rates of public elementary and sec- to July 1, 2008; and under this section shall use at least 50 per- ondary school students in the State, and the (ii) to provide the amount of funds to pub- cent of the grant to provide local edu- strategies the State is employing to help en- cational agencies in the State with sub- lic institutions of higher education in the sure that all subgroups of students identified grants based on their relative shares of fund- State that is needed to restore State support ing under part A of title I of ESEA (20 U.S.C. for postsecondary education to the fiscal in 1111(b)(2) of ESEA in the State continue 6311 et seq.) for the most recent year. year 2008 level. making progress toward meeting the State’s student academic achievement standards; SEC. 1407. INNOVATION FUND. (B) SHORTFALL.—If the Governor deter- mines that the amount of funds available (4) describe how the State would use its (a) IN GENERAL.— under paragraph (1) is insufficient to restore grant funding to improve student academic (1) ELIGIBLE ENTITY.—For the purposes of State support for education to the levels de- achievement in the State, including how it this section, the term ‘‘eligible entity’’ scribed in clauses (i) and (ii) of subparagraph will allocate the funds to give priority to means— (A), the Governor shall allocate those funds high-need schools and local educational (A) A local educational agency; or between those clauses in proportion to the agencies; and (B) a partnership between a nonprofit orga- relative shortfall in State support for the (5) include a plan for evaluating its nization and— education sectors described in those clauses. progress in closing achievement gaps. (i) one or more local educational agencies; (3) SUBGRANTS TO IMPROVE BASIC PROGRAMS (d) ASSURANCES.—An application under (ii) or a consortium of schools. OPERATED BY LOCAL EDUCATIONAL AGENCIES.— subsection (b) shall include the following as- (2) PROGRAM ESTABLISHED.—From the total After carrying out paragraph (2), the Gov- surances: amount reserved under section 1401(c), the ernor shall use any funds remaining under (1) MAINTENANCE OF EFFORT.— Secretary may reserve up to $650,000,000 to paragraph (1) to provide local educational (A) ELEMENTARY AND SECONDARY EDU- establish an Innovation Fund, which shall agencies in the State with subgrants based CATION.—The State will, in each of fiscal consist of academic achievement awards on their relative shares of funding under part years 2009 and 2010, maintain State support that recognize eligible entities that meet the A of title I of the Elementary and Secondary for elementary and secondary education at requirements described in subsection (b). Education Act of 1965 (20 U.S.C. 6311 et seq.) least at the level of such support in fiscal (3) BASIS FOR AWARDS.—The Secretary shall for the most recent year for which data are year 2006. make awards to eligible entities that have available. (B) HIGHER EDUCATION.—The State will, in made significant gains in closing the (b) OTHER GOVERNMENT SERVICES.—The each of fiscal years 2009 and 2010, maintain achievement gap as described in subsection Governor may use up to 39 percent of the State support for public institutions of high- (b)(1)— State’s allocation under section 1401 for pub- er education (not including support for cap- (A) to allow such eligible entities to ex- lic safety and other government services, ital projects or for research and develop- pand their work and serve as models for best which may include assistance for elementary ment) at least at the level of such support in practices; and secondary education and public institu- fiscal year 2006. (B) to allow such eligible entities to work tions of higher education. (2) ACHIEVING EQUITY IN TEACHER DISTRIBU- in partnership with the private sector and SEC. 1403. USES OF FUNDS BY LOCAL EDU- TION.—The State will take action, including the philanthropic community; and CATIONAL AGENCIES. activities outlined in section 2113(c) of (C) to identify and document best practices (a) IN GENERAL.—A local educational agen- ESEA, to increase the number, and improve that can be shared, and taken to scale based cy that receives funds under this title may the distribution, of effective teachers and on demonstrated success.

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(b) ELIGIBILITY.—To be eligible for such an lated services to children with disabilities, that required the advice and consent of the award, an eligible entity shall— as authorized by the Individuals with Dis- Senate, to serve as Chairperson of the Board; (1) have significantly closed the achieve- abilities Education Act (20 U.S.C. 1400 et or ment gaps between groups of students de- seq.). (C) appoint an individual as the Chair- scribed in section 1111(b)(2) of ESEA (20 SEC. 1412. DEFINITIONS. person of the Board, by and with the advice U.S.C. 6311(b)(2)); Except as otherwise provided in this title, and consent of the Senate. (2) have exceeded the State’s annual meas- as used in this title— (2) COMPENSATION.— urable objectives consistent with such sec- (1) the term ‘‘institution of higher edu- (A) DESIGNATION OF FEDERAL OFFICER.—If tion 1111(b)(2) for 2 or more consecutive cation’’ has the meaning given such term in the President designates a Federal officer years or have demonstrated success in sig- section 101 of the Higher Education Act of under paragraph (1)(A) or (B) to serve as nificantly increasing student academic 1965 (20 U.S.C. 1001); Chairperson, that Federal officer may not re- achievement for all groups of students de- (2) the term ‘‘Secretary’’ means the Sec- ceive additional compensation for services scribed in such section through another retary of Education; performed as Chairperson. measure, such as measures described in sec- (3) the term ‘‘State’’ means each of the 50 (B) APPOINTMENT OF NON-FEDERAL OFFI- tion 1111(c)(2) of ESEA; States, the District of Columbia, and the CER.—If the President appoints an individual (3) have made significant improvement in Commonwealth of Puerto Rico; and as Chairperson under paragraph (1)(C), that other areas, such as graduation rates or in- (4) any other term that is defined in sec- individual shall be compensated at the rate creased recruitment and placement of high- tion 9101 of ESEA (20 U.S.C. 7801) shall have of basic pay prescribed for level IV of the Ex- quality teachers and school leaders, as dem- the meaning given the term in such section. ecutive Schedule under section 5315 of title 5, onstrated with meaningful data; and SEC. 1413. REGULATORY RELIEF. United States Code. (4) demonstrate that they have established (a) WAIVER AUTHORITY.—Subject to sub- (b) MEMBERS.—The members of the Board partnerships with the private sector, which sections (b) and (c), the Secretary of Edu- shall include— may include philanthropic organizations, cation may, as applicable, waive or modify, (1) the Inspectors General of the Depart- and that the private sector will provide in order to ease fiscal burdens, any require- ments of Agriculture, Commerce, Education, matching funds in order to help bring results ment relating to the following: Energy, Health and Human Services, Home- to scale. (1) Maintenance of effort. land Security, Justice, Transportation, SEC. 1408. STATE REPORTS. (2) The use of Federal funds to supplement, Treasury, and the Treasury Inspector Gen- A State receiving funds under this title not supplant, non-Federal funds. eral for Tax Administration; and shall submit a report to the Secretary, at (b) DURATION.—A waiver under this section (2) any other Inspector General as des- such time and in such manner as the Sec- shall be for fiscal years 2009 and 2010. ignated by the President from any agency retary may require, that describes— (c) LIMITATIONS.— that expends or obligates covered funds. (1) the uses of funds provided under this (1) RELATION TO IDEA.—Nothing in this sec- SEC. 1513. FUNCTIONS OF THE BOARD. title within the State; tion shall be construed to permit the Sec- (a) FUNCTIONS.— (2) how the State distributed the funds it retary to waive or modify any provision of (1) IN GENERAL.—The Board shall coordi- received under this title; the Individuals with Disabilities Education nate and conduct oversight of covered funds (3) the number of jobs that the Governor Act (20 U.S.C. 1400 et seq.), except as de- in order to prevent fraud, waste, and abuse. estimates were saved or created with funds scribed in a(1) and a(2). (2) SPECIFIC FUNCTIONS.—The functions of the State received under this title; (2) MAINTENANCE OF EFFORT.—If the Sec- the Board shall include— (4) tax increases that the Governor esti- retary grants a waiver or modification under (A) reviewing whether the reporting of con- mates were averted because of the avail- this section waiving or modifying a require- tracts and grants using covered funds meets ability of funds from this title; ment relating to maintenance of effort for applicable standards and specifies the pur- (5) the State’s progress in reducing inequi- fiscal years 2009 and 2010, the level of effort pose of the contract or grant and measures ties in the distribution of teachers, in imple- required for fiscal year 2011 shall not be re- of performance; menting a State student longitudinal data duced because of the waiver or modification. (B) reviewing whether competition require- system, and in developing and implementing TITLE XV—RECOVERY ACCOUNTABILITY ments applicable to contracts and grants valid and reliable assessments for limited AND TRANSPARENCY BOARD AND RE- using covered funds have been satisfied; English proficient students and children COVERY INDEPENDENT ADVISORY (C) auditing and investigating covered with disabilities; PANEL funds to determine whether wasteful spend- (6) the tuition and fee increases for in- ing, poor contract or grant management, or SEC. 1501. DEFINITIONS. State students imposed by public institu- other abuses are occurring; In this title: tions of higher education in the State during (D) reviewing whether there are sufficient (1) AGENCY.—The term ‘‘agency’’ has the the period of availability of funds under this qualified acquisition and grant personnel meaning given under section 551 of title 5, title, and a description of any actions taken overseeing covered funds; United States Code. by the State to limit those increases; and (E) reviewing whether personnel whose du- (2) BOARD.—The term ‘‘Board’’ means the (7) the extent to which public institutions ties involve acquisitions or grants made with Recovery Accountability and Transparency of higher education maintained, increased, covered funds receive adequate training; and Board established in section 1511. or decreased enrollment of in-State students, (F) reviewing whether there are appro- (3) CHAIRPERSON.—The term ‘‘Chairperson’’ including students eligible for Pell Grants or priate mechanisms for interagency collabo- means the Chairperson of the Board. other need-based financial assistance. ration relating to covered funds. (4) COVERED FUNDS.—The term ‘‘covered SEC. 1409. EVALUATION. (b) REPORTS.— funds’’ means any funds that are expended or The Comptroller General of the United (1) QUARTERLY REPORTS.—The Board shall obligated— States shall conduct evaluations of the pro- submit quarterly reports to the President (A) from appropriations made under this grams under sections 1406 and 1407 which and Congress, including the Committees on Act; and shall include, but not be limited to, the cri- Appropriations of the Senate and House of (B) under any other authorities provided teria used for the awards made, the States Representatives, summarizing the findings of under this Act. selected for awards, award amounts, how the Board and the findings of inspectors gen- (5) PANEL.—The term ‘‘Panel’’ means the each State used the award received, and the eral of agencies. The Board may submit addi- Recovery Independent Advisory Panel estab- impact of this funding on the progress made tional reports as appropriate. lished in section 1531. toward closing achievement gaps. (2) ANNUAL REPORTS.—The Board shall sub- SEC. 1410. SECRETARY’S REPORT TO CONGRESS. Subtitle A—Recovery Accountability and mit annual reports to the President and the The Secretary shall submit a report to the Transparency Board Committees on Appropriations of the Senate Committee on Education and Labor of the SEC. 1511. ESTABLISHMENT OF THE RECOVERY and House of Representatives, consolidating House of Representatives, the Committee on ACCOUNTABILITY AND TRANS- applicable quarterly reports on the use of Health, Education, Labor, and Pensions of PARENCY BOARD. covered funds. the Senate, and the Committees on Appro- There is established the Recovery Account- (3) PUBLIC AVAILABILITY.— priations of the House of Representatives ability and Transparency Board to coordi- (A) IN GENERAL.—All reports submitted and of the Senate, not less than 6 months fol- nate and conduct oversight of covered funds under this subsection shall be made publicly lowing the submission of the State reports, to prevent fraud, waste, and abuse. available and posted on a website established that evaluates the information provided in SEC. 1512. COMPOSITION OF BOARD. by the Board. the State reports under section 1408. (a) CHAIRPERSON.— (B) REDACTIONS.—Any portion of a report SEC. 1411. PROHIBITION ON PROVISION OF CER- (1) DESIGNATION OR APPOINTMENT.—The submitted under this subsection may be re- TAIN ASSISTANCE. President shall— dacted when made publicly available, if that No recipient of funds under this title shall (A) designate the Deputy Director for Man- portion would disclose information that is use such funds to provide financial assist- agement of the Office of Management and not subject to disclosure under section 552 of ance to students to attend private elemen- Budget to serve as Chairperson of the Board; title 5, United States Code (commonly tary or secondary schools, unless such funds (B) designate another Federal officer who known as the Freedom of Information Act). are used to provide special education and re- was appointed by the President to a position (c) RECOMMENDATIONS.—

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(1) IN GENERAL.—The Board shall make rec- subsection (b) of section 3161 of title 5, mines that the complaint is frivolous, the in- ommendations to agencies on measures to United States Code, as provided under para- spector general shall investigate the com- prevent fraud, waste, and abuse relating to graph (1) of this subsection— plaint and, upon completion of such inves- covered funds. (A) paragraph (2) of subsection (b) of sec- tigation, submit a report of the findings of (2) RESPONSIVE REPORTS.—Not later than 30 tion 3161 of that title (relating to periods of the investigation to the person, the person’s days after receipt of a recommendation appointments) shall not apply; and employer, the head of the appropriate agen- under paragraph (1), an agency shall submit (B) no period of appointment may exceed cy, and the Board. a report to the President, the congressional the date on which the Board terminates (2) TIME LIMITATIONS FOR ACTIONS.— committees of jurisdiction, including the under section 1521. (A) IN GENERAL.—Except as provided under Committees on Appropriations of the Senate (b) INFORMATION AND ASSISTANCE.— subparagraph (B), the inspector general shall and House of Representatives, and the Board (1) IN GENERAL.—Upon request of the Board make a determination that a complaint is on— for information or assistance from any agen- frivolous or submit a report under paragraph (A) whether the agency agrees or disagrees cy or other entity of the Federal Govern- (1) within 180 days after receiving the com- with the recommendations; and ment, the head of such entity shall, insofar plaint. (B) any actions the agency will take to im- as is practicable and not in contravention of (B) EXTENSION.—If the inspector general is plement the recommendations. any existing law, furnish such information unable to complete an investigation in time SEC. 1514. POWERS OF THE BOARD. or assistance to the Board, or an authorized to submit a report within the 180-day period (a) IN GENERAL.—The Board shall conduct, designee. specified under subparagraph (A) and the supervise, and coordinate audits and inves- (2) REPORT OF REFUSALS.—Whenever infor- person submitting the complaint agrees to tigations by inspectors general of agencies mation or assistance requested by the Board an extension of time, the inspector general relating to covered funds. is, in the judgment of the Board, unreason- shall submit a report under paragraph (1) (b) AUDITS AND INVESTIGATIONS.—The ably refused or not provided, the Board shall within such additional period of time as Board may— report the circumstances to the congres- shall be agreed upon between the inspector (1) conduct its own independent audits and sional committees of jurisdiction, including general and the person submitting the com- investigations relating to covered funds; and the Committees on Appropriations of the plaint. (2) collaborate on audits and investigations Senate and House of Representatives, with- relating to covered funds with any inspector out delay. (c) REMEDY AND ENFORCEMENT AUTHOR- general of an agency. (c) ADMINISTRATIVE SUPPORT.—The General ITY.— (c) AUTHORITIES.— Services Administration shall provide the (1) AGENCY ACTION.—Not later than 30 days (1) AUDITS AND INVESTIGATIONS.—In con- Board with administrative support services, after receiving an inspector general report ducting audits and investigations, the Board including the provision of office space and under subsection (b), the head of the agency shall have the authorities provided under facilities. concerned shall determine whether there is section 6 of the Inspector General Act of 1978 SEC. 1516. INDEPENDENCE OF INSPECTORS GEN- sufficient basis to conclude that the non- (5 U.S.C. App.). ERAL. Federal employer has subjected the com- (2) STANDARDS AND GUIDELINES.—The Board (a) INDEPENDENT AUTHORITY.—Nothing in plainant to a reprisal prohibited by sub- shall carry out the powers under subsections this subtitle shall affect the independent au- section (a) and shall either issue an order de- (a) and (b) in accordance with section 4(b)(1) thority of an inspector general to determine nying relief or shall take 1 or more of the of the Inspector General Act of 1978 (5 U.S.C. whether to conduct an audit or investigation following actions: App.). of covered funds. (A) Order the employer to take affirmative (d) PUBLIC HEARINGS.—The Board may hold (b) REQUESTS BY BOARD.—If the Board re- action to abate the reprisal. public hearings and Board personnel may quests that an inspector general conduct or (B) Order the employer to reinstate the conduct investigative depositions. The head refrain from conducting an audit or inves- person to the position that the person held of each agency shall make all officers and tigation and the inspector general rejects before the reprisal, together with the com- employees of that agency available to pro- the request in whole or in part, the inspector pensation (including back pay), employment vide testimony to the Board and Board per- general shall, not later than 30 days after re- benefits, and other terms and conditions of sonnel. The Board may issue subpoenas to jecting the request, submit a report to the employment that would apply to the person compel the testimony of persons who are not Board, the head of the applicable agency, and in that position if the reprisal had not been Federal officers or employees. Any such sub- the congressional committees of jurisdic- taken. poenas may be enforced as provided under tion, including the Committees on Appro- (C) Order the employer to pay the com- section 6 of the Inspector General Act of 1978 priations of the Senate and House of Rep- plainant an amount equal to the aggregate (5 U.S.C. App.). resentatives. The report shall state the rea- amount of all costs and expenses (including (e) CONTRACTS.—The Board may enter into sons that the inspector general has rejected attorneys’ fees and expert witnesses’ fees) contracts to enable the Board to discharge the request in whole or in part. its duties under this subtitle, including con- that were reasonably incurred by the com- SEC. 1517. COORDINATION WITH THE COMP- plainant for, or in connection with, bringing tracts and other arrangements for audits, TROLLER GENERAL AND STATE studies, analyses, and other services with AUDITORS. the complaint regarding the reprisal, as de- public agencies and with private persons, and The Board shall coordinate its oversight termined by the head of the agency. make such payments as may be necessary to activities with the Comptroller General of (2) CIVIL ACTION.—If the head of an agency carry out the duties of the Board. the United States and State auditor gen- issues an order denying relief under para- (f) TRANSFER OF FUNDS.—The Board may erals. graph (1) or has not issued an order within transfer funds appropriated to the Board for SEC. 1518. PROTECTING STATE AND LOCAL GOV- 210 days after the submission of a complaint expenses to support administrative support ERNMENT AND CONTRACTOR WHIS- under subsection (b), or in the case of an ex- services and audits or investigations of cov- TLEBLOWERS. tension of time under subsection (b)(2)(B), ered funds to any office of inspector general, (a) PROHIBITION OF REPRISALS.—An em- not later than 30 days after the expiration of the Office of Management and Budget, the ployee of any non-Federal employer receiv- the extension of time, and there is no show- General Services Administration, and the ing covered funds may not be discharged, de- ing that such delay is due to the bad faith of Panel. moted, or otherwise discriminated against as the complainant, the complainant shall be SEC. 1515. EMPLOYMENT, PERSONNEL, AND RE- a reprisal for disclosing to the Board, an in- deemed to have exhausted all administrative LATED AUTHORITIES. spector general, the Comptroller General, a remedies with respect to the complaint, and (a) EMPLOYMENT AND PERSONNEL AUTHORI- member of Congress, or a the head of a Fed- the complainant may bring a de novo action TIES.— eral agency, or their representatives, infor- at law or equity against the employer to (1) IN GENERAL.— mation that the employee reasonably be- seek compensatory damages and other relief (A) AUTHORITIES.—Subject to paragraph lieves is evidence of— available under this section in the appro- (2), the Board may exercise the authorities of (1) gross mismanagement of an agency con- priate district court of the United States, subsections (b) through (i) of section 3161 of tract or grant relating to covered funds; which shall have jurisdiction over such an title 5, United States Code (without regard (2) a gross waste of covered funds; action without regard to the amount in con- to subsection (a) of that section). (3) a substantial and specific danger to troversy. Such an action shall, at the re- (B) APPLICATION.—For purposes of exer- public health or safety; or quest of either party to the action, be tried cising the authorities described under sub- (4) a violation of law related to an agency by the court with a jury. paragraph (A), the term ‘‘Chairperson of the contract (including the competition for or (3) EVIDENCE.—An inspector general deter- Board’’ shall be substituted for the term negotiation of a contract) or grant, awarded mination and an agency head order denying ‘‘head of a temporary organization’’. or issued relating to covered funds. relief under paragraph (2) shall be admissible (C) CONSULTATION.—In exercising the au- (b) INVESTIGATION OF COMPLAINTS.— in evidence in any de novo action at law or thorities described under subparagraph (A), (1) IN GENERAL.—A person who believes equity brought in accordance with this sub- the Chairperson shall consult with members that the person has been subjected to a re- section. of the Board. prisal prohibited by subsection (a) may sub- (4) JUDICIAL ENFORCEMENT OF ORDER.— (2) EMPLOYMENT AUTHORITIES.—In exer- mit a complaint to the appropriate inspector Whenever a person fails to comply with an cising the employment authorities under general. Unless the inspector general deter- order issued under paragraph (1), the head of

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In any ac- PENDENT ADVISORY PANEL. eral Schedule pay rates, except that the rate tion brought under this paragraph, the court (a) ESTABLISHMENT.—There is established of pay for the executive director and other may grant appropriate relief, including in- the Recovery Independent Advisory Panel. personnel may not exceed the rate payable junctive relief and compensatory and exem- (b) MEMBERSHIP.—The Panel shall be com- for level V of the Executive Schedule under plary damages. posed of 5 members who shall be appointed section 5316 of such title. (5) JUDICIAL REVIEW.—Any person adversely by the President. (3) PERSONNEL AS FEDERAL EMPLOYEES.— affected or aggrieved by an order issued (c) QUALIFICATIONS.—Members shall be ap- (A) IN GENERAL.—The executive director under paragraph (1) may obtain review of the pointed on the basis of expertise in econom- and any personnel of the Panel who are em- order’s conformance with this subsection, ics, public finance, contracting, accounting, ployees shall be employees under section 2105 and any regulations issued to carry out this or any other relevant field. of title 5, United States Code, for purposes of section, in the United States court of appeals (d) INITIAL MEETING.—Not later than 30 chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and for a circuit in which the reprisal is alleged days after the date on which all members of 90 of that title. in the order to have occurred. No petition the Panel have been appointed, the Panel (B) MEMBERS OF PANEL.—Subparagraph (A) seeking such review may be filed more than shall hold its first meeting. shall not be construed to apply to members 60 days after issuance of the order by the (e) MEETINGS.—The Panel shall meet at the of the Panel. head of the agency. Review shall conform to call of the Chairperson of the Panel. (d) DETAIL OF GOVERNMENT EMPLOYEES.— chapter 7 of title 5, United States Code. (f) QUORUM.—A majority of the members of Any Federal Government employee may be (d) RULE OF CONSTRUCTION.—Nothing in the Panel shall constitute a quorum, but a detailed to the Panel without reimburse- this section may be construed to authorize lesser number of members may hold hear- ment, and such detail shall be without inter- the discharge of, demotion of, or discrimina- ings. ruption or loss of civil service status or tion against an employee for a disclosure (g) CHAIRPERSON AND VICE CHAIRPERSON.— privilege. other than a disclosure protected by sub- The Panel shall select a Chairperson and (e) PROCUREMENT OF TEMPORARY AND section (a) or to modify or derogate from a Vice Chairperson from among its members. INTERMITTENT SERVICES.—The Chairperson of right or remedy otherwise available to the SEC. 1532. DUTIES OF THE PANEL. the Panel may procure temporary and inter- employee. The Panel shall make recommendations to mittent services under section 3109(b) of title 5, United States Code, at rates for individ- SEC. 1519. BOARD WEBSITE. the Board on actions the Board could take to prevent fraud, waste, and abuse relating to uals which do not exceed the daily equiva- (a) ESTABLISHMENT.—The Board shall es- covered funds. lent of the annual rate of basic pay pre- tablish and maintain a user-friendly, public- SEC. 1533. POWERS OF THE PANEL. scribed for level V of the Executive Schedule facing website to foster greater account- under section 5316 of such title. (a) HEARINGS.—The Panel may hold such ability and transparency in the use of cov- (f) ADMINISTRATIVE SUPPORT.—The General hearings, sit and act at such times and ered funds. Services Administration shall provide the places, take such testimony, and receive Board with administrative support services, (b) PURPOSE.—The website established and such evidence as the Panel considers advis- including the provision of office space and maintained under subsection (a) shall be a able to carry out this subtitle. portal or gateway to key information relat- facilities. (b) INFORMATION FROM FEDERAL AGEN- ing to this Act and provide connections to SEC. 1535. TERMINATION OF THE PANEL. CIES.—The Panel may secure directly from other Government websites with related in- any agency such information as the Panel The Panel shall terminate on September formation. considers necessary to carry out this sub- 30, 2012. (c) CONTENT AND FUNCTION.—In estab- title. Upon request of the Chairperson of the SEC. 1536. AUTHORIZATION OF APPROPRIATIONS. lishing the website established and main- Panel, the head of such agency shall furnish There are authorized to be appropriated tained under subsection (a), the Board shall such information to the Panel. such sums as necessary to carry out this sub- ensure the following: (c) POSTAL SERVICES.—The Panel may use title. (1) The website shall provide materials ex- the United States mails in the same manner Subtitle C—Reports of the Council of plaining what this Act means for citizens. and under the same conditions as agencies of Economic Advisers The materials shall be easy to understand the Federal Government. SEC. 1541. REPORTS OF THE COUNCIL OF ECO- and regularly updated. (d) GIFTS.—The Panel may accept, use, and NOMIC ADVISERS. (2) The website shall provide account- dispose of gifts or donations of services or (a) IN GENERAL.—In consultation with the ability information, including a database of property. Director of the Office of Management and findings from audits, inspectors general, and SEC. 1534. PANEL PERSONNEL MATTERS. Budget and the Secretary of the Treasury, the Government Accountability Office. (a) COMPENSATION OF MEMBERS.—Each the Chairperson of the Council of Economic (3) The website shall provide data on rel- member of the Panel who is not an officer or Advisers shall submit quarterly reports to evant economic, financial, grant, and con- employee of the Federal Government shall the Committees on Appropriations of the tract information in user-friendly visual be compensated at a rate equal to the daily Senate and House of Representatives that presentations to enhance public awareness of equivalent of the annual rate of basic pay detail the estimated impact of programs the use of covered funds. prescribed for level IV of the Executive funded through covered funds on employ- (4) The website shall provide detailed data Schedule under section 5315 of title 5, United ment, economic growth, and other key eco- on contracts awarded by the Government States Code, for each day (including travel nomic indicators. that expend covered funds, including infor- time) during which such member is engaged (b) SUBMISSION.—The first report under mation about the competitiveness of the in the performance of the duties of the subsection (a) shall be submitted not later contracting process, notification of solicita- Panel. All members of the Panel who are of- than 15 days after the end of the first full tions for contracts to be awarded, and infor- ficers or employees of the United States quarter following the date of enactment of mation about the process that was used for shall serve without compensation in addition this Act. The last report required to be sub- the award of contracts. to that received for their services as officers mitted under subsection (a) shall apply to (5) The website shall include printable re- or employees of the United States. the quarter in which the Board terminates ports on covered funds obligated by month to (b) TRAVEL EXPENSES.—The members of under section 1521. each State and congressional district. the Panel shall be allowed travel expenses, TITLE XVI—GENERAL PROVISIONS—THIS (6) The website shall provide a means for including per diem in lieu of subsistence, at ACT the public to give feedback on the perform- rates authorized for employees of agencies EMERGENCY DESIGNATION ance of contracts that expend covered funds. under subchapter I of chapter 57 of title 5, SEC. 1601. Each amount in this Act is des- (7) The website shall be enhanced and up- United States Code, while away from their ignated as an emergency requirement and dated as necessary to carry out the purposes homes or regular places of business in the necessary to meet emergency needs pursuant of this subtitle. performance of services for the Panel. to section 204(a) of S. Con. Res. 21 (110th Con- (d) WAIVER.—The Board may exclude post- (c) STAFF.— gress) and section 301(b)(2) of S. Con. Res. 70 ing contractual or other information on the (1) IN GENERAL.—The Chairperson of the (110th Congress), the concurrent resolutions website on a case-by-case basis when nec- Panel may, without regard to the civil serv- on the budget for fiscal years 2008 and 2009. essary to protect national security. ice laws and regulations, appoint and termi- AVAILABILITY SEC. 1520. AUTHORIZATION OF APPROPRIATIONS. nate an executive director and such other ad- ditional personnel as may be necessary to SEC. 1602. No part of any appropriation There are authorized to be appropriated enable the Panel to perform its duties. The contained in this Act shall remain available such sums as necessary to carry out this sub- employment of an executive director shall be for obligation beyond the current fiscal year title. subject to confirmation by the Panel. unless expressly so provided herein. SEC. 1521. TERMINATION OF THE BOARD. (2) COMPENSATION.—The Chairperson of the RELATIONSHIP TO OTHER APPROPRIATIONS The Board shall terminate on September Panel may fix the compensation of the exec- SEC. 1603. Each amount appropriated or 30, 2012. utive director and other personnel without made available in this Act is in addition to

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00072 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.043 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1175 amounts otherwise appropriated for the fis- sidered to be made to a section or other pro- Sec. 1202. Temporary increase in limitations cal year involved. Enactment of this Act vision of the Internal Revenue Code of 1986. on expensing of certain depre- shall have no effect on the availability of (c) TABLE OF CONTENTS.—The table of con- ciable business assets. amounts under the Continuing Appropria- tents for this title is as follows: PART II—5-YEAR CARRYBACK OF OPERATING tions Resolution, 2009 (division A of Public TITLE I—TAX PROVISIONS LOSSES Law 110–329). Sec. 1000. Short title, etc. Sec. 1211. 5-year carryback of operating BUY AMERICAN Subtitle A—Tax Relief for Individuals and losses. SEC. 1604. USE OF AMERICAN IRON, STEEL, Families Sec. 1212. Exception for TARP recipients. AND MANUFACTURED GOODS. (a) None of the PART I—GENERAL TAX RELIEF PART III—INCENTIVES FOR NEW JOBS funds appropriated or otherwise made avail- Sec. 1001. Making work pay credit. Sec. 1221. Incentives to hire unemployed able by this Act may be used for a project for Sec. 1002. Temporary increase in earned in- veterans and disconnected the construction, alteration, maintenance, come tax credit. youth. or repair of a public building or public work Sec. 1003. Temporary increase of refundable PART IV—CANCELLATION OF INDEBTEDNESS unless all of the iron, steel, and manufac- portion of child credit. tured goods used in the project are produced Sec. 1231. Deferral and ratable inclusion of Sec. 1004. American opportunity tax credit. income arising from indebted- in the United States. Sec. 1005. Computer technology and equip- (b) Subsection (a) shall not apply in any ness discharged by the repur- ment allowed as a qualified chase of a debt instrument. case in which the head of the Federal depart- higher education expense for PART V—QUALIFIED SMALL BUSINESS STOCK ment or agency involved finds that— section 529 accounts in 2009 and (1) applying subsection (a) would be incon- 2010. Sec. 1241. Special rules applicable to quali- sistent with the public interest; Sec. 1006. Extension of first-time homebuyer fied small business stock for (2) iron, steel, and the relevant manufac- credit; waiver of requirement to 2009 and 2010. tured goods are not produced in the United repay. PART VI—PARITY FOR TRANSPORTATION States if sufficient and reasonably available Sec. 1007. Suspension of tax on portion of FRINGE BENEFITS quantities and of a satisfactory quality; or unemployment compensation. Sec. 1251. Increased exclusion amount for (3) inclusion of iron, steel, and manufac- PART II—ALTERNATIVE MINIMUM TAX RELIEF commuter transit benefits and tured goods produced in the United States Sec. 1011. Extension of alternative minimum transit passes. will increase the cost of the overall project tax relief for nonrefundable per- PART VII—S CORPORATIONS by more than 25 percent. sonal credits. (c) If the head of a Federal department or Sec. 1261. Temporary reduction in recogni- Sec. 1012. Extension of increased alternative agency determines that it is necessary to tion period for built-in gains minimum tax exemption waive the application of subsection (a) based tax. amount. on a finding under subsection (b), the head of PART VIII—BROADBAND INCENTIVES Subtitle B—Energy Incentives the department or agency shall publish in Sec. 1271. Broadband Internet access tax the Federal Register a detailed written juris- PART I—RENEWABLE ENERGY INCENTIVES credit. diction as to why the provision is being Sec. 1101. Extension of credit for electricity PART IX—CLARIFICATION OF REGULATIONS waived. produced from certain renew- RELATED TO LIMITATIONS ON CERTAIN (d) In this section, the terms ‘‘public build- able resources. BUILT-IN LOSSES FOLLOWING AN OWNERSHIP ing’’ and ‘‘public work’’ have the meanings Sec. 1102. Election of investment credit in CHANGE given such terms in section 1 of the Buy lieu of production credit. Sec. 1281. Clarification of regulations re- American Act (41 U.S.C. 10c) and include air- Sec. 1103. Repeal of certain limitations on lated to limitations on certain ports, bridges, canals, dams, dikes, pipelines, credit for renewable energy built-in losses following an railroads, multiline mass transit systems, property. ownership change. roads, tunnels, harbors, and piers. PART II—INCREASED ALLOCATIONS OF NEW Subtitle D—Manufacturing Recovery CERTIFICATION CLEAN RENEWABLE ENERGY BONDS AND Provisions SEC. 1605. With respect to funds in titles I QUALIFIED ENERGY CONSERVATION BONDS Sec. 1301. Temporary expansion of avail- though XVI of this Act made available to Sec. 1111. Increased limitation on issuance ability of industrial develop- State, or local government agencies, the of new clean renewable energy ment bonds to facilities manu- Governor, mayor, or other chief executive, as bonds. facturing intangible property. appropriate, shall certify that the infrastruc- Sec. 1112. Increased limitation on issuance Sec. 1302. Credit for investment in advanced ture investment has received the full review of qualified energy conserva- energy facilities. and vetting required by law and that the tion bonds. Subtitle E—Economic Recovery Tools chief executive accepts responsibility that PART III—ENERGY CONSERVATION INCENTIVES Sec. 1401. Recovery zone bonds. the infrastructure investment is an appro- Sec. 1121. Extension and modification of Sec. 1402. Tribal economic development priate use of taxpayer dollars. A State or credit for nonbusiness energy bonds. local agency may not receive infrastructure property. Sec. 1403. Modifications to new markets tax investment funding from funds made avail- Sec. 1122. Modification of credit for residen- credit. able in this Act unless this certification is tial energy efficient property. made. Sec. 1123. Temporary increase in credit for Subtitle F—Infrastructure Financing Tools ECONOMIC STABILIZATION CONTRACTING alternative fuel vehicle refuel- PART I—IMPROVED MARKETABILITY FOR TAX- SEC. 1606. REFORM OF CONTRACTING PROCE- ing property. EXEMPT BONDS DURES UNDER EESA. Section 107(b) of the PART IV—ENERGY RESEARCH INCENTIVES Sec. 1501. De minimis safe harbor exception Emergency Economic Stabilization Act of Sec. 1131. Increased research credit for en- for tax-exempt interest expense 2008 (12 U.S.C. 5217(b)) is amended by insert- ergy research. of financial institutions. Sec. 1502. Modification of small issuer excep- ing ‘‘and individuals with disabilities and PART V—GENERAL BUSINESS CREDIT businesses owned by individuals with disabil- tion to tax-exempt interest ex- Sec. 1141. 5-year carryback of general busi- ities (for purposes of this subsection the pense allocation rules for finan- ness credits. term ‘individual with disability’ has the cial institutions. Sec. 1142. Temporary provision allowing same meaning as the term ‘handicapped indi- Sec. 1503. Temporary modification of alter- general business credits to off- vidual’ as that term is defined in section 3(f) native minimum tax limita- set 100 percent of Federal in- of the Small Business Act (15 U.S.C. 632(f)),’’ tions on tax-exempt bonds. come tax liability. after ‘‘(12 U.S.C. 1441a(r)(4)),’’. Sec. 1504. Modification to high speed inter- PART VI—MODIFICATION OF CREDIT FOR city rail facility bonds. DIVISION B—TAX, UNEMPLOYMENT, CARBON DIOXIDE SEQUESTRATION HEALTH, STATE FISCAL RELIEF, AND PART II—DELAY IN APPLICATION OF WITH- OTHER PROVISIONS Sec. 1151. Application of monitoring require- HOLDING TAX ON GOVERNMENT CONTRACTORS ments to carbon dioxide used as TITLE I—TAX PROVISIONS Sec. 1511. Delay in application of with- a tertiary injectant. holding tax on government con- SEC. 1000. SHORT TITLE, ETC. PART VII—PLUG-IN ELECTRIC DRIVE MOTOR tractors. (a) SHORT TITLE.—This title may be cited VEHICLES PART III—TAX CREDIT BONDS FOR SCHOOLS as the ‘‘American Recovery and Reinvest- Sec. 1161. Modification of credit for qualified Sec. 1521. Qualified school construction ment Tax Act of 2009’’. plug-in electric motor vehicles. (b) REFERENCE.—Except as otherwise ex- bonds. pressly provided, whenever in this title an Subtitle C—Tax Incentives for Business Sec. 1522. Extension and expansion of quali- amendment or repeal is expressed in terms of PART I—TEMPORARY INVESTMENT INCENTIVES fied zone academy bonds. an amendment to, or repeal of, a section or Sec. 1201. Special allowance for certain PART IV—BUILD AMERICA BONDS other provision, the reference shall be con- property acquired during 2009. Sec. 1531. Build America bonds.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00073 Fmt 0637 Sfmt 0655 E:\CR\FM\A30JA6.043 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1176 CONGRESSIONAL RECORD — SENATE January 30, 2009 Subtitle G—Economic Recovery Payments computing taxable income. For purposes of vidual for benefits or assistance, or the to Certain Individuals the preceding sentence, any amount excluded amount or extent of benefits or assistance, Sec. 1601. Economic recovery payment to re- from gross income by reason of section 112 under any Federal program or under any cipients of Social Security, sup- shall be treated as earned income which is State or local program financed in whole or plemental security income, taken into account in computing taxable in- in part with Federal funds. railroad retirement benefits, come for the taxable year. (d) AUTHORITY RELATING TO CLERICAL ER- RORS.—Section 6213(g)(2) is amended by and veterans disability com- ‘‘(e) TERMINATION.—This section shall not striking ‘‘and’’ at the end of subparagraph pensation or pension benefits. apply to taxable years beginning after De- cember 31, 2010.’’. (L)(ii), by striking the period at the end of Subtitle H—Trade Adjustment Assistance (b) TREATMENT OF POSSESSIONS.— subparagraph (M) and inserting ‘‘, and’’, and Sec. 1701. Temporary extension of Trade Ad- (1) PAYMENTS TO POSSESSIONS.— by adding at the end the following new sub- justment Assistance program. (A) MIRROR CODE POSSESSION.—The Sec- paragraph: Subtitle I—Prohibition on Collection of Cer- retary of the Treasury shall pay to each pos- ‘‘(N) an omission of the reduction required tain Payments Made Under the Continued session of the United States with a mirror under section 36A(c) with respect to the cred- Dumping and Subsidy Offset Act of 2000 code tax system amounts equal to the loss to it allowed under section 36A or an omission of the correct TIN required under section Sec. 1801. Prohibition on collection of cer- that possession by reason of the amendments 36A(d)(1).’’. tain payments made under the made by this section with respect to taxable years beginning in 2009 and 2010. Such (e) CONFORMING AMENDMENTS.— Continued Dumping and Sub- (1) Section 6211(b)(4)(A) is amended by in- sidy Offset Act of 2000. amounts shall be determined by the Sec- retary of the Treasury based on information serting ‘‘36A,’’ after ‘‘36,’’. Subtitle J—Other Provisions provided by the government of the respective (2) Section 1324(b)(2) of title 31, United Sec. 1901. Application of certain labor stand- possession. States Code, is amended by inserting ‘‘36A,’’ ards to projects financed with (B) OTHER POSSESSIONS.—The Secretary of after ‘‘36,’’. certain tax-favored bonds. the Treasury shall pay to each possession of (3) The table of sections for subpart C of Sec. 1902. Increase in public debt limit. the United States which does not have a mir- part IV of subchapter A of chapter 1 is Subtitle A—Tax Relief for Individuals and ror code tax system amounts estimated by amended by inserting after the item relating Families the Secretary of the Treasury as being equal to section 36 the following new item: PART I—GENERAL TAX RELIEF to the aggregate benefits that would have ‘‘Sec. 36A. Making work pay credit.’’. been provided to residents of such possession (f) EFFECTIVE DATE.—This section, and the SEC. 1001. MAKING WORK PAY CREDIT. by reason of the amendments made by this amendments made by this section, shall (a) IN GENERAL.—Subpart C of part IV of section for taxable years beginning in 2009 apply to taxable years beginning after De- subchapter A of chapter 1 is amended by in- and 2010 if a mirror code tax system had been cember 31, 2008. serting after section 36 the following new in effect in such possession. The preceding SEC. 1002. TEMPORARY INCREASE IN EARNED IN- section: sentence shall not apply with respect to any COME TAX CREDIT. ‘‘SEC. 36A. MAKING WORK PAY CREDIT. possession of the United States unless such (a) IN GENERAL.—Subsection (b) of section ‘‘(a) ALLOWANCE OF CREDIT.—In the case of possession has a plan, which has been ap- 32 is amended by adding at the end the fol- an eligible individual, there shall be allowed proved by the Secretary of the Treasury, lowing new paragraph: as a credit against the tax imposed by this under which such possession will promptly ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In the case of any taxable year beginning in 2009 or subtitle for the taxable year an amount distribute such payments to the residents of 2010— equal to the lesser of— such possession. ‘‘(A) INCREASED CREDIT PERCENTAGE FOR 3 ‘‘(1) 6.2 percent of earned income of the (2) COORDINATION WITH CREDIT ALLOWED OR MORE QUALIFYING CHILDREN.—In the case taxpayer, or AGAINST UNITED STATES INCOME TAXES.—No of a taxpayer with 3 or more qualifying chil- ‘‘(2) $500 ($1,000 in the case of a joint re- credit shall be allowed against United States dren, the credit percentage is 45 percent. turn). income taxes for any taxable year under sec- ‘‘(B) REDUCTION OF MARRIAGE PENALTY.— ‘‘(b) LIMITATION BASED ON MODIFIED AD- tion 36A of the Internal Revenue Code of 1986 ‘‘(i) IN GENERAL.—The dollar amount in ef- JUSTED GROSS INCOME.— (as added by this section) to any person— fect under paragraph (2)(B) shall be $5,000. ‘‘(1) IN GENERAL.—The amount allowable as (A) to whom a credit is allowed against ‘‘(ii) INFLATION ADJUSTMENT.—In the case a credit under subsection (a) (determined taxes imposed by the possession by reason of without regard to this paragraph and sub- of any taxable year beginning in 2010, the the amendments made by this section for $5,000 amount in clause (i) shall be increased section (c)) for the taxable year shall be re- such taxable year, or duced (but not below zero) by 4 percent of so by an amount equal to— (B) who is eligible for a payment under a ‘‘(I) such dollar amount, multiplied by much of the taxpayer’s modified adjusted plan described in paragraph (1)(B) with re- gross income as exceeds $75,000 ($150,000 in ‘‘(II) the cost of living adjustment deter- spect to such taxable year. mined under section 1(f)(3) for the calendar the case of a joint return). (3) DEFINITIONS AND SPECIAL RULES.— ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— year in which the taxable year begins deter- (A) POSSESSION OF THE UNITED STATES.—For mined by substituting ‘calendar year 2008’ For purposes of subparagraph (A), the term purposes of this subsection, the term ‘‘pos- ‘modified adjusted gross income’ means the for ‘calendar year 1992’ in subparagraph (B) session of the United States’’ includes the thereof. adjusted gross income of the taxpayer for the Commonwealth of Puerto Rico and the Com- taxable year increased by any amount ex- ‘‘(iii) ROUNDING.—Subparagraph (A) of sub- monwealth of the Northern Mariana Islands. section (j)(2) shall apply after taking into ac- cluded from gross income under section 911, (B) MIRROR CODE TAX SYSTEM.—For pur- 931, or 933. count any increase under clause (ii).’’. poses of this subsection, the term ‘‘mirror (b) EFFECTIVE DATE.—The amendments ‘‘(c) REDUCTION FOR CERTAIN OTHER PAY- code tax system’’ means, with respect to any made by this section shall apply to taxable MENTS.—The credit allowed under subsection possession of the United States, the income years beginning after December 31, 2008. (a) for any taxable year shall be reduced by tax system of such possession if the income the amount of any payments received by the SEC. 1003. TEMPORARY INCREASE OF REFUND- tax liability of the residents of such posses- ABLE PORTION OF CHILD CREDIT. taxpayer during such taxable year under sec- sion under such system is determined by ref- (a) IN GENERAL.—Paragraph (4) of section tion 1601 of the American Recovery and Re- erence to the income tax laws of the United 24(d) is amended to read as follows: investment Tax Act of 2009. States as if such possession were the United ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not- ‘‘(d) DEFINITIONS.—For purposes of this sec- States. withstanding paragraph (3), in the case of tion— (C) TREATMENT OF PAYMENTS.—For pur- any taxable year beginning in 2009 or 2010, ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligi- poses of section 1324(b)(2) of title 31, United the dollar amount in effect for such taxable ble individual’ means any individual other States Code, the payments under this sub- year under paragraph (1)(B)(i) shall be than— section shall be treated in the same manner $6,000.’’. ‘‘(A) any nonresident alien individual, as a refund due from the credit allowed (b) EFFECTIVE DATE.—The amendments ‘‘(B) any individual with respect to whom a under section 36A of the Internal Revenue made by this section shall apply to taxable deduction under section 151 is allowable to Code of 1986 (as added by this section). years beginning after December 31, 2008. another taxpayer for a taxable year begin- (c) REFUNDS DISREGARDED IN THE ADMINIS- SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. ning in the calendar year in which the indi- TRATION OF FEDERAL PROGRAMS AND FEDER- (a) IN GENERAL.—Section 25A (relating to vidual’s taxable year begins, and ALLY ASSISTED PROGRAMS.—Any credit or re- Hope scholarship credit) is amended by re- ‘‘(C) an estate or trust. fund allowed or made to any individual by designating subsection (i) as subsection (j) Such term shall not include any individual reason of section 36A of the Internal Revenue and by inserting after subsection (h) the fol- unless the requirements of section 32(c)(1)(E) Code of 1986 (as added by this section) or by lowing new subsection: are met with respect to such individual. reason of subsection (b) of this section shall ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.— ‘‘(2) EARNED INCOME.—The term ‘earned in- not be taken into account as income and In the case of any taxable year beginning in come’ has the meaning given such term by shall not be taken into account as resources 2009 or 2010— section 32(c)(2), except that such term shall for the month of receipt and the following 2 ‘‘(1) INCREASE IN CREDIT.—The Hope Schol- not include net earnings from self-employ- months, for purposes of determining the eli- arship Credit shall be an amount equal to ment which are not taken into account in gibility of such individual or any other indi- the sum of—

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‘‘(A) 100 percent of so much of the qualified (7) Section 1324(b)(2) of title 31, United (2) CONFORMING AMENDMENT.—Subsection tuition and related expenses paid by the tax- States Code, is amended by inserting ‘‘25A,’’ (g) of section 36 is amended by striking ‘‘sub- payer during the taxable year (for education before ‘‘35’’. section (c)’’ and inserting ‘‘subsections (c) furnished to the eligible student during any (c) EFFECTIVE DATE.—The amendments and (f)(4)(D)’’. academic period beginning in such taxable made by this section shall apply to taxable (c) EFFECTIVE DATE.—The amendments year) as does not exceed $2,000, plus years beginning after December 31, 2008. made by this section shall apply to resi- ‘‘(B) 25 percent of such expenses so paid as (d) APPLICATION OF EGTRRA SUNSET.—The dences purchased after December 31, 2008. exceeds $2,000 but does not exceed $4,000. amendment made by subsection (b)(1) shall SEC. 1007. SUSPENSION OF TAX ON PORTION OF ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF be subject to title IX of the Economic UNEMPLOYMENT COMPENSATION. POST-SECONDARY EDUCATION.—Subparagraphs Growth and Tax Relief Reconciliation Act of (a) IN GENERAL.—Section 85 of the Internal (A) and (C) of subsection (b)(2) shall be ap- 2001 in the same manner as the provision of Revenue Code of 1986 (relating to unemploy- plied by substituting ‘4’ for ‘2’. such Act to which such amendment relates. ment compensation) is amended by adding at ‘‘(3) QUALIFIED TUITION AND RELATED EX- (e) TREASURY STUDIES REGARDING EDU- the end the following new subsection: PENSES TO INCLUDE REQUIRED COURSE MATE- CATION INCENTIVES.— ‘‘(c) SPECIAL RULE FOR 2009.—In the case of TUDY REGARDING COORDINATION WITH RIALS.—Subsection (f)(1)(A) shall be applied (1) S any taxable year beginning in 2009, gross in- by substituting ‘tuition, fees, and course ma- NON-TAX EDUCATIONAL INCENTIVES.—The Sec- come shall not include so much of the unem- terials’ for ‘tuition and fees’. retary of the Treasury, or the Secretary’s ployment compensation received by an indi- delegate, shall study how to coordinate the ‘‘(4) INCREASE IN AGI LIMITS FOR HOPE vidual as does not exceed $2,400.’’. credit allowed under section 25A of the Inter- SCHOLARSHIP CREDIT.—In lieu of applying (b) EFFECTIVE DATE.—The amendment subsection (d) with respect to the Hope nal Revenue Code of 1986 with the Federal made by this section shall apply to taxable Scholarship Credit, such credit (determined Pell Grant program under section 401 of the years beginning after December 31, 2008. Higher Education Act of 1965. without regard to this paragraph) shall be PART II—ALTERNATIVE MINIMUM TAX (2) STUDY REGARDING IMPOSITION OF COMMU- reduced (but not below zero) by the amount RELIEF NITY SERVICE REQUIREMENTS.—The Secretary which bears the same ratio to such credit (as of the Treasury, or the Secretary’s delegate, SEC. 1011. EXTENSION OF ALTERNATIVE MIN- so determined) as— shall study the feasibility of requiring stu- IMUM TAX RELIEF FOR NONREFUND- ‘‘(A) the excess of— dents to perform community service as a ABLE PERSONAL CREDITS. ‘‘(i) the taxpayer’s modified adjusted gross condition of taking their tuition and related (a) IN GENERAL.—Paragraph (2) of section income (as defined in subsection (d)(3)) for expenses into account under section 25A of 26(a) (relating to special rule for taxable such taxable year, over the Internal Revenue Code of 1986. years 2000 through 2008) is amended— ‘‘(ii) $80,000 ($160,000 in the case of a joint (3) REPORT.—Not later than 1 year after (1) by striking ‘‘or 2008’’ and inserting return), bears to the date of the enactment of this Act, the ‘‘2008, or 2009’’, and ‘‘(B) $10,000 ($20,000 in the case of a joint re- Secretary of the Treasury, or the Secretary’s (2) by striking ‘‘2008’’ in the heading there- turn). delegate, shall report to Congress on the re- of and inserting ‘‘2009’’. ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE sults of the studies conducted under this (b) EFFECTIVE DATE.—The amendments MINIMUM TAX.—In the case of a taxable year paragraph. made by this section shall apply to taxable to which section 26(a)(2) does not apply, so years beginning after December 31, 2008. SEC. 1005. COMPUTER TECHNOLOGY AND EQUIP- much of the credit allowed under subsection MENT ALLOWED AS A QUALIFIED SEC. 1012. EXTENSION OF INCREASED ALTER- (a) as is attributable to the Hope Scholarship HIGHER EDUCATION EXPENSE FOR NATIVE MINIMUM TAX EXEMPTION Credit shall not exceed the excess of— SECTION 529 ACCOUNTS IN 2009 AND AMOUNT. ‘‘(A) the sum of the regular tax liability 2010. (a) IN GENERAL.—Paragraph (1) of section (as defined in section 26(b)) plus the tax im- (a) IN GENERAL.—Section 529(e)(3)(A) is 55(d) (relating to exemption amount) is posed by section 55, over amended by striking ‘‘and’’ at the end of amended— ‘‘(B) the sum of the credits allowable under clause (i), by striking the period at the end (1) by striking ‘‘($69,950 in the case of tax- this subpart (other than this subsection and of clause (ii), and by adding at the end the able years beginning in 2008)’’ in subpara- sections 23, 25D, and 30D) and section 27 for following: graph (A) and inserting ‘‘($70,950 in the case the taxable year. ‘‘(iii) expenses paid or incurred in 2009 or of taxable years beginning in 2009)’’, and Any reference in this section or section 24, 2010 for the purchase of any computer tech- (2) by striking ‘‘($46,200 in the case of tax- 25, 26, 25B, 904, or 1400C to a credit allowable nology or equipment (as defined in section able years beginning in 2008)’’ in subpara- under this subsection shall be treated as a 170(e)(6)(F)(i)) or Internet access and related graph (B) and inserting ‘‘($46,700 in the case reference to so much of the credit allowable services, if such technology, equipment, or of taxable years beginning in 2009)’’. under subsection (a) as is attributable to the services are to be used by the beneficiary and (b) EFFECTIVE DATE.—The amendments Hope Scholarship Credit. the beneficiary’s family during any of the made by this section shall apply to taxable ‘‘(6) PORTION OF CREDIT MADE REFUND- years the beneficiary is enrolled at an eligi- years beginning after December 31, 2008. ABLE.—30 percent of so much of the credit al- ble educational institution. Subtitle B—Energy Incentives lowed under subsection (a) as is attributable Clause (iii) shall not include expenses for computer software designed for sports, PART I—RENEWABLE ENERGY to the Hope Scholarship Credit (determined INCENTIVES after application of paragraph (4) and with- games, or hobbies unless the software is pre- out regard to this paragraph and section dominantly educational in nature.’’. SEC. 1101. EXTENSION OF CREDIT FOR ELEC- (b) EFFECTIVE DATE.—The amendments TRICITY PRODUCED FROM CERTAIN 26(a)(2) or paragraph (5), as the case may be) RENEWABLE RESOURCES. shall be treated as a credit allowable under made by this section shall apply to expenses (a) IN GENERAL.—Subsection (d) of section subpart C (and not allowed under subsection paid or incurred after December 31, 2008. SEC. 1006. EXTENSION OF FIRST-TIME HOME- 45 is amended— (a)). The preceding sentence shall not apply (1) by striking ‘‘2010’’ in paragraph (1) and to any taxpayer for any taxable year if such BUYER CREDIT; WAIVER OF RE- QUIREMENT TO REPAY. inserting ‘‘2013’’, taxpayer is a child to whom subsection (g) of (a) EXTENSION.— (2) by striking ‘‘2011’’ each place it appears section 1 applies for such taxable year. (1) IN GENERAL.—Section 36(h) is amended in paragraphs (2), (3), (4), (6), (7) and (9) and ‘‘(7) COORDINATION WITH MIDWESTERN DIS- by striking ‘‘July 1, 2009’’ and inserting inserting ‘‘2014’’, and ASTER AREA BENEFITS.—In the case of a tax- ‘‘September 1, 2009’’. (3) by striking ‘‘2012’’ in paragraph (11)(B) payer with respect to whom section (2) CONFORMING AMENDMENT.—Section 36(g) and inserting ‘‘2014’’. 702(a)(1)(B) of the Heartland Disaster Tax Re- is amended by striking ‘‘July 1, 2009’’ and in- (b) TECHNICAL AMENDMENT.—Paragraph (5) lief Act of 2008 applies for any taxable year, serting ‘‘September 1, 2009’’. of section 45(d) is amended by striking ‘‘and such taxpayer may elect to waive the appli- (b) WAIVER OF RECAPTURE.— before’’ and all that follows and inserting ‘‘ cation of this subsection to such taxpayer (1) IN GENERAL.—Paragraph (4) of section and before October 3, 2008.’’. for such taxable year.’’. 36(f) is amended by adding at the end the fol- (c) EFFECTIVE DATE.— (b) CONFORMING AMENDMENTS.— lowing new subparagraph: (1) IN GENERAL.—The amendments made by (1) Section 24(b)(3)(B) is amended by insert- ‘‘(D) WAIVER OF RECAPTURE FOR PURCHASES subsection (a) shall apply to property placed ing ‘‘25A(i),’’ after ‘‘23,’’. IN 2009.—In the case of any credit allowed in service after the date of the enactment of (2) Section 25(e)(1)(C)(ii) is amended by in- with respect to the purchase of a principal this Act. serting ‘‘25A(i),’’ after ‘‘24,’’. residence after December 31, 2008, and before (2) TECHNICAL AMENDMENT.—The amend- (3) Section 26(a)(1) is amended by inserting September 1, 2009— ment made by subsection (b) shall take ef- ‘‘25A(i),’’ after ‘‘24,’’. ‘‘(i) paragraph (1) shall not apply, and fect as if included in section 102 of the En- (4) Section 25B(g)(2) is amended by insert- ‘‘(ii) paragraph (2) shall apply only if the ergy Improvement and Extension Act of 2008. ing ‘‘25A(i),’’ after ‘‘23,’’. disposition or cessation described in para- SEC. 1102. ELECTION OF INVESTMENT CREDIT IN (5) Section 904(i) is amended by inserting graph (2) with respect to such residence oc- LIEU OF PRODUCTION CREDIT. ‘‘25A(i),’’ after ‘‘24,’’. curs during the 36-month period beginning (a) IN GENERAL.—Subsection (a) of section (6) Section 1400C(d)(2) is amended by in- on the date of the purchase of such residence 48 is amended by adding at the end the fol- serting ‘‘25A(i),’’ after ‘‘24,’’. by the taxpayer.’’. lowing new paragraph:

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‘‘(5) ELECTION TO TREAT QUALIFIED FACILI- shall be increased by $1,600,000,000. Such in- ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN TIES AS ENERGY PROPERTY.— crease shall be allocated by the Secretary SERVICE DURING 2009 AND 2010.—In the case of ‘‘(A) IN GENERAL.—In the case of any quali- consistent with the rules of paragraphs (2) property placed in service in taxable years fied investment credit facility— and (3).’’. beginning after December 31, 2008, and before ‘‘(i) such facility shall be treated as energy SEC. 1112. INCREASED LIMITATION ON ISSUANCE January 1, 2011— property for purposes of this section, and OF QUALIFIED ENERGY CONSERVA- ‘‘(A) in the case of any such property which ‘‘(ii) the energy percentage with respect to TION BONDS. does not relate to hydrogen— such property shall be 30 percent. Section 54D(d) is amended by striking ‘‘(i) subsection (a) shall be applied by sub- ‘‘(B) DENIAL OF PRODUCTION CREDIT.—No ‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. stituting ‘50 percent’ for ‘30 percent’, credit shall be allowed under section 45 for PART III—ENERGY CONSERVATION ‘‘(ii) subsection (b)(1) shall be applied by any taxable year with respect to any quali- INCENTIVES substituting ‘$50,000’ for ‘$30,000’, and fied investment credit facility. ‘‘(iii) subsection (b)(2) shall be applied by SEC. 1121. EXTENSION AND MODIFICATION OF ‘‘(C) QUALIFIED INVESTMENT CREDIT FACIL- CREDIT FOR NONBUSINESS ENERGY substituting ‘$2,000’ for ‘$1,000’, and ITY.—For purposes of this paragraph, the PROPERTY. ‘‘(B) in the case of any such property which term ‘qualified investment credit facility’ (a) IN GENERAL.—Section 25C is amended relates to hydrogen, subsection (b)(1) shall be means any of the following facilities if no by striking subsections (a) and (b) and in- applied by substituting ‘$200,000’ for credit has been allowed under section 45 with serting the following new subsections: ‘$30,000’.’’. respect to such facility and the taxpayer ‘‘(a) ALLOWANCE OF CREDIT.—In the case of (b) EFFECTIVE DATE.—The amendment makes an irrevocable election to have this an individual, there shall be allowed as a made by this section shall apply to taxable paragraph apply to such facility: credit against the tax imposed by this chap- years beginning after December 31, 2008. ‘‘(i) WIND FACILITIES.—Any facility de- ter for the taxable year an amount equal to scribed in paragraph (1) of section 45(d) if 30 percent of the sum of— PART IV—ENERGY RESEARCH such facility is placed in service in 2009, 2010, ‘‘(1) the amount paid or incurred by the INCENTIVES 2011, or 2012. taxpayer during such taxable year for quali- ‘‘(ii) OTHER FACILITIES.—Any facility de- SEC. 1131. INCREASED RESEARCH CREDIT FOR fied energy efficiency improvements, and ENERGY RESEARCH. scribed in paragraph (2), (3), (4), (6), (7), (9), or ‘‘(2) the amount of the residential energy (11) of section 45(d) if such facility is placed property expenditures paid or incurred by (a) IN GENERAL.—Section 41 is amended by in service in 2009, 2010, 2011, 2012, or 2013.’’. the taxpayer during such taxable year. redesignating subsection (h) as subsection (i) (b) EFFECTIVE DATE.—The amendments ‘‘(b) LIMITATION.—The aggregate amount of and by inserting after subsection (g) the fol- made by this section shall apply to facilities the credits allowed under this section for lowing new subsection: placed in service after December 31, 2008. taxable years beginning in 2009 and 2010 with ‘‘(h) ENERGY RESEARCH CREDIT.—In the SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON respect to any taxpayer shall not exceed case of any taxable year beginning in 2009 or CREDIT FOR RENEWABLE ENERGY $1,500.’’. PROPERTY. 2010— (b) EXTENSION.—Section 25C(g)(2) is amend- ‘‘(1) IN GENERAL.—The credit determined (a) REPEAL OF LIMITATION ON CREDIT FOR ed by striking ‘‘December 31, 2009’’ and in- under subsection (a)(1) shall be increased by QUALIFIED SMALL WIND ENERGY PROPERTY.— serting ‘‘December 31, 2010’’. 20 percent of the qualified energy research Paragraph (4) of section 48(c) is amended by (c) EFFECTIVE DATE.—The amendments expenses for the taxable year. striking subparagraph (B) and by redesig- made by this section shall apply to taxable ‘‘(2) QUALIFIED ENERGY RESEARCH EX- nating subparagraphs (C) and (D) as subpara- years beginning after December 31, 2008. PENSES.—For purposes of this subsection— graphs (B) and (C). SEC. 1122. MODIFICATION OF CREDIT FOR RESI- ‘‘(A) IN GENERAL.—The term ‘qualified en- (b) REPEAL OF LIMITATION ON PROPERTY FI- DENTIAL ENERGY EFFICIENT PROP- ergy research expenses’ means so much of NANCED BY SUBSIDIZED ENERGY FINANCING.— ERTY. the taxpayer’s qualified research expenses as (1) IN GENERAL.—Section 48(a)(4) is amend- (a) REMOVAL OF CREDIT LIMITATION FOR are related to the fields of fuel cells and bat- ed by adding at the end the following new PROPERTY PLACED IN SERVICE.— tery technology, renewable energy and re- subparagraph: (1) IN GENERAL.—Paragraph (1) of section newable fuels, energy conservation tech- ‘‘(D) TERMINATION.—This paragraph shall 25D(b) is amended to read as follows: nology, efficient transmission and distribu- not apply to periods after December 31, 2008, ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In tion of electricity, and carbon capture and under rules similar to the rules of section the case of any qualified fuel cell property sequestration. 48(m) (as in effect on the day before the date expenditure, the credit allowed under sub- ‘‘(B) COORDINATION WITH QUALIFYING AD- of the enactment of the Revenue Reconcili- section (a) (determined without regard to VANCED ENERGY PROJECT CREDIT.—Such term ation Act of 1990).’’. subsection (c)) for any taxable year shall not shall not include expenditures taken into ac- (2) CONFORMING AMENDMENTS.— exceed $500 with respect to each half kilo- count in determining the amount of the (A) Section 25C(e)(1) is amended by strik- watt of capacity of the qualified fuel cell credit under section 48 or 48C. ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. property (as defined in section 48(c)(1)) to ‘‘(3) COORDINATION WITH OTHER RESEARCH (B) Section 25D(e) is amended by striking which such expenditure relates.’’. CREDITS.— paragraph (9). (2) CONFORMING AMENDMENT.—Paragraph ‘‘(A) IN GENERAL.—The amount of qualified (C) Section 48A(b)(2) is amended by insert- (4) of section 25D(e) is amended— energy research expenses taken into account ing ‘‘(without regard to subparagraph (D) (A) by striking all that precedes subpara- under subsection (a)(1)(A) shall not exceed thereof)’’ after ‘‘section 48(a)(4)’’. graph (B) and inserting the following: the base amount. (D) Section 48B(b)(2) is amended by insert- ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS IN ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.—For ing ‘‘(without regard to subparagraph (D) CASE OF JOINT OCCUPANCY.—In the case of any purposes of subsection (c)(5), the amount of thereof)’’ after ‘‘section 48(a)(4)’’. dwelling unit with respect to which qualified qualified energy research expenses taken (c) EFFECTIVE DATE.— fuel cell property expenditures are made and into account for the taxable year for which (1) IN GENERAL.—Except as provided in which is jointly occupied and used during paragraph (2), the amendment made by this the credit is being determined shall not ex- any calendar year as a residence by two or ceed— section shall apply to periods after December more individuals the following rules shall 31, 2008, under rules similar to the rules of ‘‘(i) in the case of subsection (c)(5)(A), 50 apply: percent of the average qualified research ex- section 48(m) of the Internal Revenue Code of ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL 1986 (as in effect on the day before the date penses for the 3 taxable years preceding the CELLS.—The maximum amount of such ex- taxable year for which the credit is being de- of the enactment of the Revenue Reconcili- penditures which may be taken into account ation Act of 1990). termined, and under subsection (a) by all such individuals ‘‘(ii) in the case of subsection (c)(5)(B)(ii), (2) CONFORMING AMENDMENTS.—The amend- with respect to such dwelling unit during ments made by subsection (b)(2) shall apply zero. such calendar year shall be $1,667 in the case ASIC RESEARCH AND ENERGY RESEARCH to taxable years beginning after December ‘‘(C) B of each half kilowatt of capacity of qualified CONSORTIUM PAYMENTS.—Any amount taken 31, 2008. fuel cell property (as defined in section into account under paragraph (1) shall not be PART II—INCREASED ALLOCATIONS OF 48(c)(1)) with respect to which such expendi- taken into account under paragraph (2) or (3) NEW CLEAN RENEWABLE ENERGY tures relate.’’, and of subsection (a).’’. BONDS AND QUALIFIED ENERGY CON- (B) by striking subparagraph (C). (b) CONFORMING AMENDMENT.—Subpara- SERVATION BONDS (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable graph (B) of section 41(i)(1)(B), as redesig- SEC. 1111. INCREASED LIMITATION ON ISSUANCE nated by subsection (a), is amended by in- OF NEW CLEAN RENEWABLE EN- years beginning after December 31, 2008. ERGY BONDS. serting ‘‘(in the case of the increase in the SEC. 1123. TEMPORARY INCREASE IN CREDIT credit determined under subsection (h), De- Subsection (c) of section 54C is amended by FOR ALTERNATIVE FUEL VEHICLE adding at the end the following new para- REFUELING PROPERTY. cember 31, 2010)’’ after ‘‘December 31, 2009’’. graph: (a) IN GENERAL.—Section 30C(e) is amended (c) EFFECTIVE DATE.—The amendments ‘‘(4) ADDITIONAL LIMITATION.—The national by adding at the end the following new para- made by this section shall apply to taxable new clean renewable energy bond limitation graph: years beginning after December 31, 2008.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00076 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.044 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1179 PART V—GENERAL BUSINESS CREDIT (a)(1)(B)’’ and inserting ‘‘paragraph (1)(B) or Subtitle C—Tax Incentives for Business SEC. 1141. 5-YEAR CARRYBACK OF GENERAL (2)(C) of subsection (a)’’. PART I—TEMPORARY INVESTMENT BUSINESS CREDITS. (c) EFFECTIVE DATE.—The amendments INCENTIVES (a) IN GENERAL.—Subsection (a) of section made by this section shall apply to carbon SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN 39 is amended by adding at the end the fol- dioxide captured after the date of the enact- PROPERTY ACQUIRED DURING 2009. lowing new paragraph: ment of this Act. (a) EXTENSION OF SPECIAL ALLOWANCE.— ‘‘(4) SPECIAL RULE FOR 2008 AND 2009 BUSINESS PART VII—PLUG-IN ELECTRIC DRIVE (1) IN GENERAL.—Paragraph (2) of section CREDITS.—In the case of any current year MOTOR VEHICLES 168(k) is amended— business credit for a taxable year ending in (A) by striking ‘‘January 1, 2010’’ and in- 2008 or 2009— SEC. 1161. MODIFICATION OF CREDIT FOR QUALI- serting ‘‘January 1, 2011’’, and ‘‘(A) paragraph (1)(A) shall be applied by FIED PLUG-IN ELECTRIC MOTOR VE- HICLES. (B) by striking ‘‘January 1, 2009’’ each substituting ‘each of the 5 taxable years’ for place it appears and inserting ‘‘January 1, (a) INCREASE IN VEHICLES ELIGIBLE FOR ‘the taxable year’ in subparagraph (A) there- 2010’’. CREDIT.—Section 30D(b)(2)(B) is amended by of, and (2) CONFORMING AMENDMENTS.— striking ‘‘250,000’’ and inserting ‘‘500,000’’. ‘‘(B) paragraph (2) shall be applied— (A) The heading for subsection (k) of sec- (b) EXCLUSION OF NEIGHBORHOOD ELECTRIC ‘‘(i) by substituting ‘25 taxable years’ for tion 168 is amended by striking ‘‘JANUARY 1, VEHICLES FROM EXISTING CREDIT.—Section ‘21 taxable years’, and 2009’’ and inserting ‘‘JANUARY 1, 2010’’. ‘‘(ii) by substituting ‘24 taxable years’ for 30D(e)(1) is amended to read as follows: (B) The heading for clause (ii) of section ‘‘(1) MOTOR VEHICLE.—The term ‘motor ve- ‘20 taxable years’.’’. 168(k)(2)(B) is amended by striking ‘‘PRE-JAN- (b) EFFECTIVE DATE.—The amendment hicle’ means a motor vehicle (as defined in UARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, made by this subsection shall apply to tax- section 30(c)(2)), which is treated as a motor 2010’’. able years ending after December 31, 2007, vehicle for purposes of title II of the Clean (C) Subparagraph (B) of section 168(l)(5) is and to carrybacks of business credits from Air Act.’’. amended by striking ‘‘January 1, 2009’’ and such taxable years. (c) CREDIT FOR CERTAIN OTHER VEHICLES.— inserting ‘‘January 1, 2010’’. SEC. 1142. TEMPORARY PROVISION ALLOWING Section 30D is amended— (D) Subparagraph (C) of section 168(n)(2) is GENERAL BUSINESS CREDITS TO (1) by redesignating subsections (f) and (g) amended by striking ‘‘January 1, 2009’’ and OFFSET 100 PERCENT OF FEDERAL as subsections (g) and (h), respectively, and INCOME TAX LIABILITY. inserting ‘‘January 1, 2010’’. (2) by inserting after subsection (e) the fol- (a) IN GENERAL.—Subsection (c) of section (E) Subparagraph (B) of section 1400N(d)(3) lowing new subsection: 38 is amended by adding at the end the fol- is amended by striking ‘‘January 1, 2009’’ and lowing new paragraph: ‘‘(f) CREDIT FOR CERTAIN OTHER VEHI- inserting ‘‘January 1, 2010’’. ‘‘(6) TEMPORARY PROVISION ALLOWING GEN- CLES.—For purposes of this section— (3) TECHNICAL AMENDMENT.—Subparagraph ERAL BUSINESS CREDITS TO OFFSET 100 PERCENT ‘‘(1) IN GENERAL.—In the case of a specified (D) of section 168(k)(4) is amended— OF FEDERAL INCOME TAX LIABILITY.— vehicle, this section shall be applied with the (A) by striking ‘‘and’’ at the end of clause ‘‘(A) IN GENERAL.—In the case of a taxable following modifications: (i), year ending in 2008 or 2009— ‘‘(A) For purposes of subsection (a)(1), in (B) by redesignating clause (ii) as clause ‘‘(i) the limitation under paragraph (1) lieu of the applicable amount determined (iii), and shall be the net income tax (as defined in under subsection (a)(2), the applicable (C) by inserting after clause (i) the fol- paragraph (1)) for purposes of determining amount shall be 10 percent of so much of the lowing new clause: the amount of the credit allowed under sub- cost of the specified vehicle as does not ex- ‘‘(ii) ‘April 1, 2008’ shall be substituted for section (a) for such taxable year, and ceed $40,000. ‘January 1, 2008’ in subparagraph (A)(iii)(I) ‘‘(ii) the excess credit for such taxable year ‘‘(B) Subsection (b) shall not apply and no thereof, and’’. shall, solely for purposes of determining the specified vehicle shall be taken into account (b) EXTENSION OF ELECTION TO ACCELERATE amount of such excess credit which may be under subsection (b)(2). THE AMT AND RESEARCH CREDITS IN LIEU OF carried back to a preceding taxable year, be ‘‘(C) Subsection (c)(3) shall not apply. BONUS DEPRECIATION.—Section 168(k)(4) (re- increased by the amount of business credit ‘‘(2) SPECIFIED VEHICLE.—For purposes of lating to election to accelerate the AMT and carryforwards which are carried to such tax- this subsection— research credits in lieu of bonus deprecia- able year and which are not allowed for such ‘‘(A) IN GENERAL.—The term ‘specified ve- tion) is amended— taxable year by reason of the limitation hicle’ means— (1) by striking ‘‘2009’’ and inserting under paragraph (1) (as modified by clause ‘‘(i) any 2- or 3- wheeled motor vehicle, or ‘‘2010’’in subparagraph (D)(iii) (as redesig- (i)). ‘‘(ii) any low-speed motor vehicle, nated by subsection (a)(3)), and ‘‘(B) INCREASE IN LIMITATION FOR TAXABLE which is placed in service after December 31, (2) by adding at the end the following new YEARS TO WHICH EXCESS CREDITS FOR 2008 AND 2009, and before January 1, 2012. subparagraph: 2009 ARE CARRIED BACK.— ‘‘(B) 2- OR 3-WHEELED MOTOR VEHICLE.—The ‘‘(H) SPECIAL RULES FOR EXTENSION PROP- ‘‘(i) IN GENERAL.—Solely for purposes of de- term ‘2- or 3-wheeled motor vehicle’ means ERTY.— termining the portion of any excess credit any vehicle— ‘‘(i) TAXPAYERS PREVIOUSLY ELECTING AC- described in subparagraph (A)(ii) for which ‘‘(i) which would be described in section CELERATION.—In the case of a taxpayer who credit will be allowed under subsection (a)(3) 30(c)(2) except that it has 2 or 3 wheels, made the election under subparagraph (A) for any preceding taxable year, the limita- ‘‘(ii) with motive power having a seat or for its first taxable year ending after March tion under paragraph (1) for such preceding saddle for the use of the rider and designed 31, 2008— taxable year shall be the net income tax (as to travel on not more than 3 wheels in con- ‘‘(I) the taxpayer may elect not to have defined in paragraph (1)). tact with the ground, this paragraph apply to extension property, ‘‘(ii) ORDERING RULE.—If the excess credit ‘‘(iii) which has an electric motor that pro- but described in subparagraph (A)(ii) includes duces in excess of 5-brake horsepower, ‘‘(II) if the taxpayer does not make the business credit carryforwards from preceding ‘‘(iv) which draws propulsion from 1 or election under subclause (I), in applying this taxable years, such excess credit shall be more traction batteries, and paragraph to the taxpayer a separate bonus treated as allowed for any preceding taxable ‘‘(v) which has been certified to the De- depreciation amount, maximum amount, and year on a first-in first-out basis.’’. partment of Transportation pursuant to sec- maximum increase amount shall be com- (b) EFFECTIVE DATE.—The amendment tion 567 of title 49, Code of Federal Regula- puted and applied to eligible qualified prop- made by this section shall apply to taxable tions, as conforming to all applicable Fed- erty which is extension property and to eligi- years ending after December 31, 2007, and to eral motor vehicle safety standards in effect ble qualified property which is not extension carrybacks of credits from such taxable on the date of the manufacture of the vehi- property. years. cle. ‘‘(ii) TAXPAYERS NOT PREVIOUSLY ELECTING PART VI—MODIFICATION OF CREDIT FOR ‘‘(C) LOW-SPEED MOTOR VEHICLE.—The term ACCELERATION.—In the case of a taxpayer CARBON DIOXIDE SEQUESTRATION ‘low-speed motor vehicle’ means a motor ve- who did not make the election under sub- hicle (as defined in section 30(c)(2)) which paragraph (A) for its first taxable year end- SEC. 1151. APPLICATION OF MONITORING RE- meets the requirements of section 571.500 of QUIREMENTS TO CARBON DIOXIDE ing after March 31, 2008— USED AS A TERTIARY INJECTANT. title 49, Code of Federal Regulations.’’. ‘‘(I) the taxpayer may elect to have this (a) IN GENERAL.—Section 45Q(a)(2) is (d) EFFECTIVE DATES.— paragraph apply to its first taxable year end- amended by striking ‘‘and’’ at the end of sub- (1) INCREASE IN VEHICLES ELIGIBLE FOR ing after December 31, 2008, and each subse- paragraph (A), by striking the period at the CREDIT.—The amendment made by sub- quent taxable year, and end of subparagraph (B) and inserting section (a) shall take effect on the date of ‘‘(II) if the taxpayer makes the election ‘‘,and’’, and by adding at the end the fol- the enactment of this Act. under subclause (I), this paragraph shall only lowing new subparagraph: (2) OTHER MODIFICATIONS.—The amend- apply to eligible qualified property which is ‘‘(C) disposed of by the taxpayer in secure ments made by subsections (b) and (c) shall extension property. geological storage.’’. apply to property placed in service after De- ‘‘(iii) EXTENSION PROPERTY.—For purposes (b) CONFORMING AMENDMENT.—Section cember 31, 2009, in taxable years beginning of this subparagraph, the term ‘extension 45Q(d)(2) is amended by striking ‘‘subsection after such date. property’ means property which is eligible

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qualified property solely by reason of the ex- (b) EFFECTIVE DATE.—The amendments ‘‘(D) COORDINATION WITH ALTERNATIVE TAX tension of the application of the special al- made by this section shall apply to taxable NET OPERATING LOSS DEDUCTION.—In the case lowance under paragraph (1) pursuant to the years beginning after December 31, 2008. of a taxpayer who elects to have subpara- amendments made by section 1201(a) of the PART II—5-YEAR CARRYBACK OF graph (B)(ii) apply, section 56(d)(1)(A)(ii) American Recovery and Reinvestment Tax OPERATING LOSSES shall be applied by substituting ‘ending dur- Act of 2009 (and the application of such ex- ing 2001 or 2002 or beginning during 2008 or SEC. 1211. 5-YEAR CARRYBACK OF OPERATING tension to this paragraph pursuant to the LOSSES. 2009’ for ‘ending during 2001, 2002, 2008, or 2009’.’’. amendment made by section 1201(b)(1) of (a) IN GENERAL.—Subparagraph (H) of sec- such Act).’’. (d) CONFORMING AMENDMENT.—Section 172 tion 172(b)(1) is amended to read as follows: is amended by striking subsection (k) and by (c) INCLUSION OF FILMS OR VIDEOTAPE AS ‘‘(H) CARRYBACK FOR 2008 AND 2009 NET OPER- QUALIFIED PROPERTY.— redesignating subsection (l) as subsection ATING LOSSES.— (k). (1) IN GENERAL.—Section 168(k)(2) is ‘‘(i) IN GENERAL.—In the case of an applica- amended by adding at the end the following (e) EFFECTIVE DATE.— ble 2008 or 2009 net operating loss with re- (1) IN GENERAL.—Except as otherwise pro- new subparagraph: spect to which the taxpayer has elected the vided in this subsection, the amendments ‘‘(H) CERTAIN FILMS.—The term ‘qualified application of this subparagraph— made by this section shall apply to net oper- property’ includes property— ‘‘(I) subparagraph (A)(i) shall be applied by ating losses arising in taxable years ending ‘‘(i) which is a motion picture film or video substituting any whole number elected by after December 31, 2007. tape (within the meaning of subsection (f)(3)) the taxpayer which is more than 2 and less (2) ALTERNATIVE TAX NET OPERATING LOSS for which a deduction is allowable under sec- than 6 for ‘2’, DEDUCTION.—The amendment made by sub- tion 167(a) without regard to this section, ‘‘(II) subparagraph (E)(ii) shall be applied section (b) shall apply to taxable years end- ‘‘(ii) the original use of which commences by substituting the whole number which is ing after 1997. with the taxpayer after December 31, 2008, one less than the whole number substituted (3) LOSS FROM OPERATIONS OF LIFE INSUR- ‘‘(iii) which is— under subclause (II) for ‘2’, and ANCE COMPANIES.—The amendment made by ‘‘(I) acquired by the taxpayer after Decem- ‘‘(III) subparagraph (F) shall not apply. subsection (d) shall apply to losses from op- ber 31, 2008, and before January 1, 2010, but ‘‘(ii) APPLICABLE 2008 OR 2009 NET OPERATING erations arising in taxable years ending after only if no written binding contract for the LOSS.—For purposes of this subparagraph, December 31, 2007. acquisition was in effect before January 1, the term ‘applicable 2008 or 2009 net oper- (4) TRANSITIONAL RULE.—In the case of a 2009, or ating loss’ means— net operating loss (or, in the case of a life in- ‘‘(II) acquired by the taxpayer pursuant to ‘‘(I) the taxpayer’s net operating loss for surance company, a loss from operations) for a written binding contract which was en- any taxable year ending in 2008 or 2009, or a taxable year ending before the date of the tered into after December 31, 2008, and before ‘‘(II) if the taxpayer elects to have this enactment of this Act— January 1, 2010, subclause apply in lieu of subclause (I), the (A) any election made under section ‘‘(iv) which is placed in service by the tax- taxpayer’s net operating loss for any taxable 172(b)(3) or 810(b)(3) of the Internal Revenue payer before January 1, 2010, or, in the case year beginning in 2008 or 2009. Code of 1986 with respect to such loss may of property described in subparagraph (B), ‘‘(iii) ELECTION.—Any election under this (notwithstanding such section) be revoked before January 1, 2011, and subparagraph shall be made in such manner before the applicable date, ‘‘(v) the production of which is a qualified as may be prescribed by the Secretary, and (B) any election made under section 172(k) film or television production (as defined in shall be made by the due date (including ex- or 810(b)(4) of such Code with respect to such section 181(d) (determined without regard to tension of time) for filing the taxpayer’s re- loss shall (notwithstanding such section) be paragraph (2)(B)(ii) thereof)) with respect to turn for the taxable year of the net oper- treated as timely made if made before the which an election is not in effect under sec- ating loss. Any such election, once made, applicable date, and tion 181.’’. shall be irrevocable. (C) any application under section 6411(a) of (2) CONFORMING AMENDMENTS.— ‘‘(iv) COORDINATION WITH ALTERNATIVE TAX such Code with respect to such loss shall be (A) Subclause (I) of section 168(k)(2)(B)(i) is NET OPERATING LOSS DEDUCTION.—In the case treated as timely filed if filed before the ap- amended by inserting ‘‘subparagraph (H) or’’ of a taxpayer who elects to have clause plicable date. after ‘‘requirements of’’. (ii)(II) apply, section 56(d)(1)(A)(ii) shall be For purposes of this paragraph, the term (B) Subclause (II) of section 168(k)(2)(B)(i) applied by substituting ‘ending during 2001 ‘‘applicable date’’ means the date which is 60 is amended by striking ‘‘or is transportation or 2002 or beginning during 2008 or 2009’ for days after the date of the enactment of this property’’ and inserting ‘‘, is transportation ‘ending during 2001, 2002, 2008, or 2009’.’’. Act. property, or is property described in subpara- (b) ALTERNATIVE TAX NET OPERATING LOSS SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. graph (H)’’. DEDUCTION.—Subclause (I) of section The amendments made by this part shall (C) Clause (iii) of section 168(k)(2)(D) is 56(d)(1)(A)(ii) is amended to read as follows: not apply to— amended by adding at the end the following ‘‘(I) the amount of such deduction attrib- (1) any taxpayer if— new sentence: ‘‘For purposes of the preceding utable to the sum of carrybacks of net oper- (A) the Federal Government acquires, at sentence, all property described in subpara- ating losses from taxable years ending dur- any time, an equity interest in the taxpayer graph (H) shall be treated as one class of ing 2001, 2002, 2008, or 2009 and carryovers of pursuant to the Emergency Economic Sta- property.’’. net operating losses to such taxable years, bilization Act of 2008, or (D) Subparagraph (E) of section 168(k)(2) is or’’. (B) the Federal Government acquires, at amended by adding at the end the following (c) LOSS FROM OPERATIONS OF LIFE INSUR- any time, any warrant (or other right) to ac- new clause: ANCE COMPANIES.—Subsection (b) of section quire any equity interest with respect to the ‘‘(v) APPLICATION TO FILM AND VIDEOTAPE 810 is amended by adding at the end the fol- taxpayer pursuant to such Act, PROPERTY.—In the case of property described lowing new paragraph: (2) the Federal National Mortgage Associa- in subparagraph (H), clauses (i), (ii), (iii), and ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— tion and the Federal Home Loan Mortgage (iv) of this subparagraph shall be applied— ‘‘(A) IN GENERAL.—In the case of an appli- Corporation, and ‘‘(I) by substituting ‘December 31, 2008’ for cable 2008 or 2009 loss from operations with (3) any taxpayer which at any time in 2008 ‘December 31, 2007’ each place it appears, and respect to which the taxpayer has elected or 2009 is a member of the same affiliated ‘‘(II) by treating any reference to a clause the application of this paragraph, paragraph group (as defined in section 1504 of the Inter- of subparagraph (A) as a reference to the cor- (1)(A) shall be applied, at the election of the nal Revenue Code of 1986, determined with- responding clause of subparagraph (H).’’. taxpayer, by substituting ‘5’ or ‘4’ for ‘3’. out regard to subsection (b) thereof) as a tax- (d) EFFECTIVE DATES.— ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM OP- payer described in paragraph (1) or (2). (1) IN GENERAL.—Except as provided in ERATIONS.—For purposes of this paragraph, PART III—INCENTIVES FOR NEW JOBS paragraph (2), the amendments made by this the term ‘applicable 2008 or 2009 loss from op- SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED section shall apply to property placed in erations’ means— VETERANS AND DISCONNECTED service after December 31, 2008, in taxable ‘‘(i) the taxpayer’s loss from operations for YOUTH. years ending after such date. any taxable year ending in 2008 or 2009, or (a) IN GENERAL.—Subsection (d) of section (2) TECHNICAL AMENDMENT.—The amend- ‘‘(ii) if the taxpayer elects to have this 51 is amended by adding at the end the fol- ments made by subsection (a)(3) shall apply clause apply in lieu of clause (i), the tax- lowing new paragraph: to taxable years ending after March 31, 2008. payer’s loss from operations for any taxable ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED SEC. 1202. TEMPORARY INCREASE IN LIMITA- year beginning in 2008 or 2009. VETERANS AND DISCONNECTED YOUTH HIRED IN TIONS ON EXPENSING OF CERTAIN ‘‘(C) ELECTION.—Any election under this 2009 OR 2010.— DEPRECIABLE BUSINESS ASSETS. paragraph shall be made in such manner as ‘‘(A) IN GENERAL.—Any unemployed vet- (a) IN GENERAL.—Paragraph (7) of section may be prescribed by the Secretary, and eran or disconnected youth who begins work 179(b) is amended— shall be made by the due date (including ex- for the employer during 2009 or 2010 shall be (1) by striking ‘‘2008’’ and inserting ‘‘2008, tension of time) for filing the taxpayer’s re- treated as a member of a targeted group for or 2009’’, and turn for the taxable year of the loss from op- purposes of this subpart. (2) by striking ‘‘2008’’ in the heading thereof erations. Any such election, once made, shall ‘‘(B) DEFINITIONS.—For purposes of this and inserting ‘‘2008, AND 2009’’. be irrevocable. paragraph—

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‘‘(i) UNEMPLOYED VETERAN.—The term ‘un- PART V—QUALIFIED SMALL BUSINESS ‘‘(2) the next generation broadband credit. employed veteran’ means any veteran (as de- STOCK ‘‘(b) CURRENT GENERATION BROADBAND fined in paragraph (3)(B), determined with- SEC. 1241. SPECIAL RULES APPLICABLE TO CREDIT; NEXT GENERATION BROADBAND CRED- out regard to clause (ii) thereof) who is cer- QUALIFIED SMALL BUSINESS STOCK IT.—For purposes of this section— tified by the designated local agency as— FOR 2009 AND 2010. ‘‘(1) CURRENT GENERATION BROADBAND CRED- ‘‘(I) having been discharged or released (a) IN GENERAL.—Section 1202(a) is amend- IT.—The current generation broadband credit from active duty in the Armed Forces during ed by adding at the end the following new for any taxable year is equal to 10 percent (20 2008, 2009, or 2010, and paragraph: percent in the case of qualified subscribers ‘‘(II) being in receipt of unemployment ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In the which are unserved subscribers) of the quali- compensation under State or Federal law for case of qualified small business stock ac- fied broadband expenditures incurred with not less than 4 weeks during the 1-year pe- quired after the date of the enactment of respect to qualified equipment providing cur- riod ending on the hiring date. this paragraph and before January 1, 2011— rent generation broadband services to quali- ‘‘(ii) DISCONNECTED YOUTH.—The term ‘dis- ‘‘(A) paragraph (1) shall be applied by sub- fied subscribers and taken into account with connected youth’ means any individual who stituting ‘75 percent’ for ‘50 percent’, and respect to such taxable year. is certified by the designated local agency— ‘‘(B) paragraph (2) shall not apply.’’. ‘‘(2) NEXT GENERATION BROADBAND CREDIT.— ‘‘(I) as having attained age 16 but not age (b) EFFECTIVE DATE.—The amendment The next generation broadband credit for 25 on the hiring date, made by this section shall apply to stock ac- any taxable year is equal to 20 percent of the ‘‘(II) as not regularly attending any sec- quired after the date of the enactment of qualified broadband expenditures incurred ondary, technical, or post-secondary school this Act. with respect to qualified equipment pro- during the 6-month period preceding the hir- PART VI—PARITY FOR TRANSPORTATION viding next generation broadband services to ing date, FRINGE BENEFITS qualified subscribers and taken into account ‘‘(III) as not regularly employed during with respect to such taxable year. SEC. 1251. INCREASED EXCLUSION AMOUNT FOR such 6-month period, and COMMUTER TRANSIT BENEFITS AND ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC- ‘‘(IV) as not readily employable by reason TRANSIT PASSES. COUNT.—For purposes of this section— of lacking a sufficient number of basic (a) IN GENERAL.—Paragraph (2) of section ‘‘(1) IN GENERAL.—Qualified broadband ex- skills.’’. 132(f) is amended by adding at the end the penditures with respect to qualified equip- ment shall be taken into account with re- (b) EFFECTIVE DATE.—The amendments following flush sentence: spect to the first taxable year in which— made by this section shall apply to individ- ‘‘In the case of any month beginning on or ‘‘(A) current generation broadband services uals who begin work for the employer after after the date of the enactment of this sen- are provided through such equipment to December 31, 2008. tence and before January 1, 2011, subpara- qualified subscribers, or graph (A) shall be applied as if the dollar ‘‘(B) next generation broadband services PART IV—CANCELLATION OF amount therein were the same as the dollar are provided through such equipment to INDEBTEDNESS amount under subparagraph (B) (as in effect qualified subscribers. for such month).’’. SEC. 1231. DEFERRAL AND RATABLE INCLUSION ‘‘(2) LIMITATION.— (b) EFFECTIVE DATE.—The amendment OF INCOME ARISING FROM INDEBT- ‘‘(A) IN GENERAL.—Qualified broadband ex- made by this section shall apply to months EDNESS DISCHARGED BY THE RE- penditures shall be taken into account under PURCHASE OF A DEBT INSTRUMENT. beginning on or after the date of the enact- paragraph (1) only with respect to qualified ment of this section. (a) IN GENERAL.—Section 108 (relating to equipment— income from discharge of indebtedness) is PART VII—S CORPORATIONS ‘‘(i) the original use of which commences amended by adding at the end the following SEC. 1261. TEMPORARY REDUCTION IN RECOGNI- with the taxpayer, and new subsection: TION PERIOD FOR BUILT-IN GAINS ‘‘(ii) which is placed in service, after De- TAX. cember 31, 2008, and before January 1, 2011. ‘‘(i) DEFERRAL AND RATABLE INCLUSION OF (a) IN GENERAL.—Paragraph (7) of section ‘‘(B) SALE-LEASEBACKS.—For purposes of INCOME ARISING FROM INDEBTEDNESS DIS- 1374(d) (relating to definitions and special subparagraph (A), if property— CHARGED BY THE REPURCHASE OF A DEBT IN- rules) is amended to read as follows: ‘‘(i) is originally placed in service after De- STRUMENT.— ‘‘(7) RECOGNITION PERIOD.— cember 31, 2008, by any person, and ‘‘(1) IN GENERAL.—Notwithstanding section ‘‘(A) IN GENERAL.—The term ‘recognition ‘‘(ii) sold and leased back by such person 61, income from the discharge of indebted- period’ means the 10-year period beginning within 3 months after the date such property ness in connection with the repurchase of a with the 1st day of the 1st taxable year for was originally placed in service, debt instrument after December 31, 2008, and which the corporation was an S corporation. such property shall be treated as originally before January 1, 2011, shall be includible in ‘‘(B) SPECIAL RULE FOR 2009 AND 2010.—In the placed in service not earlier than the date on gross income ratably over the 8-taxable-year case of any taxable year beginning in 2009 or which such property is used under the lease- period beginning with— 2010, no tax shall be imposed on the net un- back referred to in clause (ii). ‘‘(A) in the case of a repurchase occurring recognized built-in gain of an S corporation ‘‘(d) SPECIAL ALLOCATION RULES FOR CUR- in 2009, the second taxable year following the if the 7th taxable year in the recognition pe- RENT GENERATION BROADBAND SERVICES.— taxable year in which the repurchase occurs, riod preceded such taxable year. The pre- For purposes of determining the current gen- and ceding sentence shall be applied separately eration broadband credit under subsection ‘‘(B) in the case of a repurchase occurring with respect to any asset to which paragraph (a)(1) with respect to qualified equipment in 2010, the taxable year following the tax- (8) applies. through which current generation broadband able year in which the repurchase occurs. ‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS TO services are provided, if the qualified equip- ‘‘(2) DEBT INSTRUMENT.—For purposes of SHAREHOLDERS.—For purposes of applying ment is capable of serving both qualified this subsection, the term ‘debt instrument’ this section to any amount includible in in- subscribers and other subscribers, the quali- means a bond, debenture, note, certificate, come by reason of distributions to share- fied broadband expenditures shall be multi- or any other instrument or contractual ar- holders pursuant to section 593(e)— plied by a fraction— rangement constituting indebtedness (within ‘‘(i) subparagraph (A) shall be applied with- ‘‘(1) the numerator of which is the sum of the meaning of section 1275(a)(1)). out regard to the phrase ‘10-year’, and the number of potential qualified subscribers ‘‘(3) REPURCHASE.—For purposes of this ‘‘(ii) subparagraph (B) shall not apply.’’. within the rural areas and the underserved subsection, the term ‘repurchase’ means, (b) EFFECTIVE DATE.—The amendment areas and the unserved areas which the with respect to any debt instrument, a cash made by this section shall apply to taxable equipment is capable of serving with current purchase of the debt instrument by— years beginning after December 31, 2008. ‘‘(A) the debtor which issued the debt in- generation broadband services, and PART VIII—BROADBAND INCENTIVES strument, or ‘‘(2) the denominator of which is the total ‘‘(B) any person related to such debtor. SEC. 1271. BROADBAND INTERNET ACCESS TAX potential subscriber population of the area CREDIT. which the equipment is capable of serving For purposes of subparagraph (B), the deter- (a) IN GENERAL.—Subpart E of part IV of with current generation broadband services. mination of whether a person is related to chapter 1 of the Internal Revenue Code of ‘‘(e) DEFINITIONS.—For purposes of this sec- another person shall be made in the same 1986 (relating to rules for computing invest- tion— manner as under subsection (e)(4). ment credit), as amended by this Act, is ‘‘(1) ANTENNA.—The term ‘antenna’ means ‘‘(4) AUTHORITY TO PRESCRIBE REGULA- amended by inserting after section 48C the any device used to transmit or receive sig- TIONS.—The Secretary may prescribe such following new section: nals through the electromagnetic spectrum, regulations as may be necessary or appro- including satellite equipment. priate for purposes of applying this sub- ‘‘SEC. 48D. BROADBAND INTERNET ACCESS CRED- IT. ‘‘(2) CABLE OPERATOR.—The term ‘cable op- section.’’. ‘‘(a) GENERAL RULE.—For purposes of sec- erator’ has the meaning given such term by (b) EFFECTIVE DATE.—The amendments tion 46, the broadband credit for any taxable section 602(5) of the Communications Act of made by this section shall apply to dis- year is the sum of— 1934 (47 U.S.C. 522(5)). charges in taxable years ending after Decem- ‘‘(1) the current generation broadband ‘‘(3) COMMERCIAL MOBILE SERVICE CAR- ber 31, 2008. credit, plus RIER.—The term ‘commercial mobile service

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carrier’ means any person authorized to pro- available similar services in any areas in ‘‘(B) CERTAIN SATELLITE EXPENDITURES EX- vide commercial mobile radio service as de- which the provider makes available such CLUDED.—Such term shall not include any fined in section 20.3 of title 47, Code of Fed- services. expenditure with respect to the launching of eral Regulations. ‘‘(13) QUALIFIED EQUIPMENT.— any satellite equipment. ‘‘(4) CURRENT GENERATION BROADBAND SERV- ‘‘(A) IN GENERAL.—The term ‘qualified ‘‘(C) LEASED EQUIPMENT.—Such term shall ICE.—The term ‘current generation equipment’ means property with respect to include so much of the purchase price paid broadband service’ means the transmission which depreciation (or amortization in lieu by the lessor of equipment subject to a lease of signals at a rate of at least 5,000,000 bits of depreciation) is allowable and which pro- described in subsection (c)(2)(B) as is attrib- per second to the subscriber and at least vides current generation broadband services utable to expenditures incurred by the lessee 1,000,000 bits per second from the subscriber or next generation broadband services— which would otherwise be described in sub- (at least 3,000,000 bits per second to the sub- ‘‘(i) at least a majority of the time during paragraph (A). scriber and at least 768,000 bits per second periods of maximum demand to each sub- ‘‘(15) QUALIFIED SUBSCRIBER.—The term from the subscriber in the case of service scriber who is utilizing such services, and ‘qualified subscriber’ means— through radio transmission of energy). ‘‘(ii) in a manner substantially the same as ‘‘(A) with respect to the provision of cur- ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.— such services are provided by the provider to rent generation broadband services— The term ‘multiplexing’ means the trans- subscribers through equipment with respect ‘‘(i) any nonresidential subscriber main- mission of 2 or more signals over a single to which no credit is allowed under sub- taining a permanent place of business in a channel, and the term ‘demultiplexing’ section (a)(1). rural area, an underserved area, or an means the separation of 2 or more signals ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN INTO unserved area, or previously combined by compatible multi- ACCOUNT.—Except as provided in subpara- ‘‘(ii) any residential subscriber residing in plexing equipment. graph (C) or (D), equipment shall be taken a dwelling located in a rural area, an under- ‘‘(6) NEXT GENERATION BROADBAND SERV- into account under subparagraph (A) only to served area, or an unserved area which is not ICE.—The term ‘next generation broadband the extent it— a saturated market, and service’ means the transmission of signals at ‘‘(i) extends from the last point of switch- ‘‘(B) with respect to the provision of next a rate of at least 100,000,000 bits per second to ing to the outside of the unit, building, generation broadband services— the subscriber (or its equivalent when the dwelling, or office owned or leased by a sub- ‘‘(i) any nonresidential subscriber main- data rate is measured before being com- scriber in the case of a telecommunications taining a permanent place of business in a pressed for transmission) and at least carrier or broadband-over-powerline oper- rural area, an underserved area, or an 20,000,000 bits per second from the subscriber ator, unserved area , or (or its equivalent as so measured). ‘‘(ii) extends from the customer side of the ‘‘(ii) any residential subscriber. mobile telephone switching office to a trans- ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The term ‘nonresidential subscriber’ means any mission/receive antenna (including such an- ‘residential subscriber’ means any individual person who purchases broadband services tenna) owned or leased by a subscriber in the who purchases broadband services which are which are delivered to the permanent place case of a commercial mobile service carrier, delivered to such individual’s dwelling. of business of such person. ‘‘(iii) extends from the customer side of the ‘‘(17) RURAL AREA.—The term ‘rural area’ headend to the outside of the unit, building, means any census tract which— ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The dwelling, or office owned or leased by a sub- ‘‘(A) is not within 10 miles of any incor- term ‘open video system operator’ means scriber in the case of a cable operator or porated or census designated place con- any person authorized to provide service open video system operator, or taining more than 25,000 people, and under section 653 of the Communications Act ‘‘(iv) extends from a transmission/receive ‘‘(B) is not within a county or county of 1934 (47 U.S.C. 573). antenna (including such antenna) which equivalent which has an overall population ‘‘(9) OTHER WIRELESS CARRIER.—The term transmits and receives signals to or from density of more than 500 people per square ‘other wireless carrier’ means any person multiple subscribers, to a transmission/re- mile of land. (other than a telecommunications carrier, ceive antenna (including such antenna) on ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural commercial mobile service carrier, cable op- the outside of the unit, building, dwelling, or subscriber’ means any residential subscriber erator, open video system operator, or sat- office owned or leased by a subscriber in the residing in a dwelling located in a rural area ellite carrier) providing current generation case of a satellite carrier or other wireless or nonresidential subscriber maintaining a broadband services or next generation carrier, unless such other wireless carrier is permanent place of business located in a broadband service to subscribers through the also a telecommunications carrier. rural area. radio transmission of energy. ‘‘(C) PACKET SWITCHING EQUIPMENT.—Pack- ‘‘(19) SATELLITE CARRIER.—The term ‘sat- ‘‘(10) PACKET SWITCHING.—The term ‘packet et switching equipment, regardless of loca- ellite carrier’ means any person using the fa- switching’ means controlling or routing the tion, shall be taken into account under sub- cilities of a satellite or satellite service li- path of a digitized transmission signal which paragraph (A) only if it is deployed in con- censed by the Federal Communications Com- is assembled into packets or cells. nection with equipment described in sub- mission and operating in the Fixed-Satellite ‘‘(11) PROVIDER.—The term ‘provider’ paragraph (B) and is uniquely designed to Service under part 25 of title 47 of the Code means, with respect to any qualified equip- perform the function of packet switching for of Federal Regulations or the Direct Broad- ment any— current generation broadband services or cast Satellite Service under part 100 of title ‘‘(A) cable operator, next generation broadband services, but only 47 of such Code to establish and operate a ‘‘(B) commercial mobile service carrier, if such packet switching is the last in a se- channel of communications for distribution ‘‘(C) open video system operator, ries of such functions performed in the trans- of signals, and owning or leasing a capacity ‘‘(D) satellite carrier, mission of a signal to a subscriber or the or service on a satellite in order to provide ‘‘(E) telecommunications carrier, or first in a series of such functions performed such point-to-multipoint distribution. ‘‘(F) other wireless carrier, in the transmission of a signal from a sub- ‘‘(20) SATURATED MARKET.—The term ‘satu- providing current generation broadband scriber. rated market’ means any census tract in services or next generation broadband serv- ‘‘(D) MULTIPLEXING AND DEMULTIPLEXING which, as of the date of the enactment of ices to subscribers through such qualified EQUIPMENT.—Multiplexing and this section— equipment. demultiplexing equipment shall be taken ‘‘(A) current generation broadband services ‘‘(12) PROVISION OF SERVICES.—A provider into account under subparagraph (A) only to have been provided by a single provider to 85 shall be treated as providing services to 1 or the extent it is deployed in connection with percent or more of the total number of po- more subscribers if— equipment described in subparagraph (B) and tential residential subscribers residing in ‘‘(A) such a subscriber has been passed by is uniquely designed to perform the function dwellings located within such census tract, the provider’s equipment and can be con- of multiplexing and demultiplexing packets and nected to such equipment for a standard con- or cells of data and making associated appli- ‘‘(B) such services can be utilized— nection fee, cation adaptions, but only if such multi- ‘‘(i) at least a majority of the time during ‘‘(B) the provider is physically able to de- plexing or demultiplexing equipment is lo- periods of maximum demand by each such liver current generation broadband services cated between packet switching equipment subscriber who is utilizing such services, and or next generation broadband services, as ap- described in subparagraph (C) and the sub- ‘‘(ii) in a manner substantially the same as plicable, to such a subscriber without mak- scriber’s premises. such services are provided by the provider to ing more than an insignificant investment ‘‘(14) QUALIFIED BROADBAND EXPENDITURE.— subscribers through equipment with respect with respect to such subscriber, ‘‘(A) IN GENERAL.—The term ‘qualified to which no credit is allowed under sub- ‘‘(C) the provider has made reasonable ef- broadband expenditure’ means any amount— section (a)(1). forts to make such subscribers aware of the ‘‘(i) chargeable to capital account with re- ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ availability of such services, spect to the purchase and installation of means any person who purchases current ‘‘(D) such services have been purchased by qualified equipment (including any upgrades generation broadband services or next gen- 1 or more such subscribers, and thereto) for which depreciation is allowable eration broadband services. ‘‘(E) such services are made available to under section 168, and ‘‘(22) TELECOMMUNICATIONS CARRIER.—The such subscribers at average prices com- ‘‘(ii) incurred after December 31, 2008, and term ‘telecommunications carrier’ has the parable to those at which the provider makes before January 1, 2011. meaning given such term by section 3(44) of

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the Communications Act of 1934 (47 U.S.C. (e) DESIGNATION OF CENSUS TRACTS.— PART IX—CLARIFICATION OF REGULA- 153(44)), but— (1) IN GENERAL.—The Secretary of the TIONS RELATED TO LIMITATIONS ON ‘‘(A) includes all members of an affiliated Treasury shall, not later than 90 days after CERTAIN BUILT-IN LOSSES FOLLOWING group of which a telecommunications carrier the date of the enactment of this Act, des- AN OWNERSHIP CHANGE is a member, and ignate and publish those census tracts meet- SEC. 1281. CLARIFICATION OF REGULATIONS RE- ‘‘(B) does not include any commercial mo- ing the criteria described in paragraphs (17), LATED TO LIMITATIONS ON CER- bile service carrier. (23), (24), and (26) of section 48D(e) of the In- TAIN BUILT-IN LOSSES FOLLOWING ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU- ternal Revenue Code of 1986 (as added by this AN OWNERSHIP CHANGE. LATION.—The term ‘total potential sub- section). In making such designations, the (a) FINDINGS.—Congress finds as follows: scriber population’ means, with respect to Secretary of the Treasury shall consult with (1) The delegation of authority to the Sec- any area and based on the most recent cen- such other departments and agencies as the retary of the Treasury under section 382(m) sus data, the total number of potential resi- Secretary determines appropriate. of the Internal Revenue Code of 1986 does not dential subscribers residing in dwellings lo- (2) SATURATED MARKET.— authorize the Secretary to provide exemp- cated in such area and potential nonresiden- (A) IN GENERAL.—For purposes of desig- tions or special rules that are restricted to tial subscribers maintaining permanent nating and publishing those census tracts particular industries or classes of taxpayers. places of business located in such area. meeting the criteria described in subsection (2) Internal Revenue Service Notice 2008–83 ‘‘(24) UNDERSERVED AREA.—The term ‘un- is inconsistent with the congressional intent derserved area’ means any census tract (e)(20) of such section 48D— (i) the Secretary of the Treasury shall pre- in enacting such section 382(m). which is located in— (3) The legal authority to prescribe Inter- scribe not later than 30 days after the date of ‘‘(A) an empowerment zone or enterprise nal Revenue Service Notice 2008–83 is doubt- the enactment of this Act the form upon community designated under section 1391, ful. which any provider which takes the position ‘‘(B) the District of Columbia Enterprise (4) However, as taxpayers should generally that it meets such criteria with respect to Zone established under section 1400, be able to rely on guidance issued by the any census tract shall submit a list of such ‘‘(C) a renewal community designated Secretary of the Treasury legislation is nec- census tracts (and any other information re- under section 1400E, or essary to clarify the force and effect of Inter- quired by the Secretary) not later than 60 ‘‘(D) a low-income community designated nal Revenue Service Notice 2008–83 and re- days after the date of the publication of such under section 45D. store the proper application under the Inter- ‘‘(25) UNDERSERVED SUBSCRIBER.—The term form, and nal Revenue Code of 1986 of the limitation on ‘underserved subscriber’ means any residen- (ii) the Secretary of the Treasury shall built-in losses following an ownership change tial subscriber residing in a dwelling located publish an aggregate list of such census of a bank. tracts submitted and the applicable pro- in an underserved area or nonresidential sub- (b) DETERMINATION OF FORCE AND EFFECT viders not later than 30 days after the last scriber maintaining a permanent place of OF INTERNAL REVENUE SERVICE NOTICE 2008–83 business located in an underserved area. date such submissions are allowed under EXEMPTING BANKS FROM LIMITATION ON CER- ‘‘(26) UNSERVED AREA.—The term ‘unserved clause (i). TAIN BUILT–IN LOSSES FOLLOWING OWNERSHIP area’ means any census tract in which no (B) NO SUBSEQUENT LISTS REQUIRED.—The CHANGE.— current generation broadband services are Secretary of the Treasury shall not be re- (1) IN GENERAL.—Internal Revenue Service provided, as certified by the State in which quired to publish any list of census tracts Notice 2008–83— such tract is located not later than Sep- meeting such criteria subsequent to the list (A) shall be deemed to have the force and tember 30, 2009. described in subparagraph (A)(ii). effect of law with respect to any ownership ‘‘(27) UNSERVED SUBSCRIBER.—The term (C) AUTHORITY TO DISREGARD FALSE SUBMIS- change (as defined in section 382(g) of the In- ‘unserved subscriber’ means any residential SIONS.—In addition to imposing any other ap- ternal Revenue Code of 1986) occurring on or subscriber residing in a dwelling located in plicable penalties, the Secretary of the before January 16, 2009, and an unserved area or nonresidential sub- Treasury shall have the discretion to dis- (B) shall have no force or effect with re- scriber maintaining a permanent place of regard any form described in subparagraph spect to any ownership change after such business located in an unserved area.’’. (A)(i) on which a provider knowingly sub- date. (b) CREDIT TO BE PART OF INVESTMENT mitted false information. (2) BINDING CONTRACTS.—Notwithstanding CREDIT.—Section 46 (relating to the amount (f) OTHER REGULATORY MATTERS.— paragraph (1), Internal Revenue Service No- of investment credit), as amended by this tice 2008–83 shall have the force and effect of Act, is amended by striking ‘‘and’’ at the end (1) PROHIBITION.—No Federal or State agen- law with respect to any ownership change (as of paragraph (4), by striking the period at cy or instrumentality shall adopt regula- so defined) which occurs after January 16, the end of paragraph (5) and inserting ‘‘, tions or ratemaking procedures that would 2009, if such change— and’’, and by adding at the end the following: have the effect of eliminating or reducing (A) is pursuant to a written binding con- ‘‘(6) the broadband Internet access credit.’’ any credit or portion thereof allowed under tract entered into on or before such date, or (c) SPECIAL RULE FOR MUTUAL OR COOPERA- section 48D of the Internal Revenue Code of TIVE TELEPHONE COMPANIES.—Section 1986 (as added by this section) or otherwise (B) is pursuant to a written agreement en- 501(c)(12)(B) (relating to list of exempt orga- subverting the purpose of this section. tered into on or before such date and such nizations) is amended by striking ‘‘or’’ at the (2) TREASURY REGULATORY AUTHORITY.—It agreement was described on or before such end of clause (iii), by striking the period at is the intent of Congress in providing the date in a public announcement or in a filing the end of clause (iv) and inserting ‘‘, or’’, broadband Internet access credit under sec- with the Securities and Exchange Commis- and by adding at the end the following new tion 48D of the Internal Revenue Code of 1986 sion required by reason of such ownership clause: (as added by this section) to provide incen- change. ‘‘(v) from the sale of property subject to a tives for the purchase, installation, and con- Subtitle D—Manufacturing Recovery lease described in section 48D(c)(2)(B), but nection of equipment and facilities offering Provisions only to the extent such income does not in expanded broadband access to the Internet SEC. 1301. TEMPORARY EXPANSION OF AVAIL- any year exceed an amount equal to the for users in certain low income and rural ABILITY OF INDUSTRIAL DEVELOP- credit for qualified broadband expenditures areas of the United States, as well as to resi- MENT BONDS TO FACILITIES MANU- which would be determined under section dential users nationwide, in a manner that FACTURING INTANGIBLE PROPERTY. 48D for such year if the mutual or coopera- maintains competitive neutrality among the (a) IN GENERAL.—Subparagraph (C) of sec- tive telephone company was not exempt various classes of providers of broadband tion 144(a)(12) is amended— from taxation and was treated as the owner services. Accordingly, the Secretary of the (1) by striking ‘‘For purposes of this para- of the property subject to such lease.’’. Treasury shall prescribe such regulations as graph, the term’’ and inserting ‘‘For pur- (d) CONFORMING AMENDMENTS.— may be necessary or appropriate to carry out poses of this paragraph— (1) Section 49(a)(1)(C), as amended by this the purposes of section 48D of such Code, in- ‘‘(i) IN GENERAL.—The term’’, and Act, is amended by striking ‘‘and’’ at the end cluding— (2) by striking the last sentence and insert- of clause (iv), by striking the period at the (A) regulations to determine how and when ing the following new clauses: end of clause (v) and inserting ‘‘, and’’, and a taxpayer that incurs qualified broadband ‘‘(ii) CERTAIN FACILITIES INCLUDED.—Such by adding after clause (v) the following new expenditures satisfies the requirements of term includes facilities which are directly clause: section 48D of such Code to provide related and ancillary to a manufacturing fa- ‘‘(vi) the portion of the basis of any quali- broadband services, and cility (determined without regard to this fied equipment attributable to qualified (B) regulations describing the information, clause) if— broadband expenditures under section 48D.’’. records, and data taxpayers are required to ‘‘(I) such facilities are located on the same (2) The table of sections for subpart E of provide the Secretary to substantiate com- site as the manufacturing facility, and part IV of subchapter A of chapter 1, as pliance with the requirements of section 48D ‘‘(II) not more than 25 percent of the net amended by this Act, is amended by insert- of such Code. proceeds of the issue are used to provide such ing after the item relating to section 48C the facilities. following: (g) EFFECTIVE DATE.—The amendments ‘‘(iii) SPECIAL RULES FOR BONDS ISSUED IN ‘‘Sec. 48D. Broadband internet access cred- made by this section shall apply to expendi- 2009 AND 2010.—In the case of any issue made it’’. tures incurred after December 31, 2008. after the date of enactment of this clause

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00081 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.045 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1184 CONGRESSIONAL RECORD — SENATE January 30, 2009 and before January 1, 2011, clause (ii) shall ‘‘(II) designed to manufacture fuel cells, sult of third party opposition or litigation to not apply and the net proceeds from a bond microturbines, or an energy storage system the proposed project. shall be considered to be used to provide a for use with electric or hybrid-electric motor ‘‘(C) REALLOCATION.—If the Secretary de- manufacturing facility if such proceeds are vehicles, termines that credits under this section are used to provide— ‘‘(III) designed to manufacture electric available for reallocation pursuant to the re- ‘‘(I) a facility which is used in the creation grids to support the transmission of inter- quirements set forth in paragraph (2), the or production of intangible property which is mittent sources of renewable energy, Secretary is authorized to conduct an addi- described in section 197(d)(1)(C)(iii), or ‘‘(IV) designed to capture and sequester tional program for applications for certifi- ‘‘(II) a facility which is functionally re- carbon dioxide emissions, or cation. lated and subordinate to a manufacturing fa- ‘‘(V) designed to refine or blend renewable ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec- cility (determined without regard to this fuels or to produce energy conservation tech- retary shall, upon making a certification subclause) if such facility is located on the nologies (including energy-conserving light- under this subsection, publicly disclose the same site as the manufacturing facility.’’. ing technologies and smart grid tech- identity of the applicant and the amount of (b) EFFECTIVE DATE.—The amendments nologies), and the credit with respect to such applicant. made by this section shall apply to bonds ‘‘(ii) any portion of the qualified invest- ‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit issued after the date of the enactment of this ment of which is certified by the Secretary shall not be allowed under this section for Act. under subsection (d) as eligible for a credit any qualified investment for which a credit SEC. 1302. CREDIT FOR INVESTMENT IN AD- under this section. is allowed under section 48, 48A, or 48B.’’. VANCED ENERGY FACILITIES. ‘‘(B) EXCEPTION.—Such term shall not in- (c) CONFORMING AMENDMENTS.— (1) Section 49(a)(1)(C) is amended by strik- (a) IN GENERAL.—Section 46 (relating to clude any portion of a project for the produc- amount of credit) is amended by striking tion of any property which is used in the re- ing ‘‘and’’ at the end of clause (iii), by strik- ‘‘and’’ at the end of paragraph (3), by strik- fining or blending of any transportation fuel ing the period at the end of clause (iv) and ing the period at the end of paragraph (4), (other than renewable fuels). inserting ‘‘, and’’, and by adding after clause and by adding at the end the following new ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligi- (iv) the following new clause: paragraph: ble property’ means any property which is ‘‘(v) the basis of any property which is part part of a qualifying advanced energy project ‘‘(5) the qualifying advanced energy project of a qualifying advanced energy project and is necessary for the production of prop- credit.’’. under section 48C.’’. erty described in paragraph (1)(A)(i). (2) The table of sections for subpart E of (b) AMOUNT OF CREDIT.—Subpart E of part ‘‘(d) QUALIFYING ADVANCED ENERGY IV of subchapter A of chapter 1 (relating to part IV of subchapter A of chapter 1 is PROJECT PROGRAM.— rules for computing investment credit) is amended by inserting after the item relating ‘‘(1) ESTABLISHMENT.— amended by inserting after section 48B the to section 48B the following new item: ‘‘(A) IN GENERAL.—Not later than 180 days following new section: ‘‘48C. Qualifying advanced energy project after the date of enactment of this section, credit.’’. ‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY the Secretary, in consultation with the Sec- (d) EFFECTIVE DATE.—The amendments PROJECT CREDIT. retary of Energy, shall establish a qualifying made by this section shall apply to periods ‘‘(a) IN GENERAL.—For purposes of section advanced energy project program to consider after the date of the enactment of this Act, 46, the qualifying advanced energy project and award certifications for qualified invest- under rules similar to the rules of section credit for any taxable year is an amount ments eligible for credits under this section 48(m) of the Internal Revenue Code of 1986 equal to 30 percent of the qualified invest- to qualifying advanced energy project spon- (as in effect on the day before the date of the ment for such taxable year with respect to sors. enactment of the Revenue Reconciliation any qualifying advanced energy project of ‘‘(B) LIMITATION.—The total amount of Act of 1990). the taxpayer. credits that may be allocated under the pro- ‘‘(b) QUALIFIED INVESTMENT.— gram shall not exceed $2,000,000,000. Subtitle E—Economic Recovery Tools ‘‘(1) IN GENERAL.—For purposes of sub- ‘‘(2) CERTIFICATION.— SEC. 1401. RECOVERY ZONE BONDS. section (a), the qualified investment for any ‘‘(A) APPLICATION PERIOD.—Each applicant (a) IN GENERAL.—Subchapter Y of chapter 1 taxable year is the basis of eligible property for certification under this paragraph shall is amended by adding at the end the fol- placed in service by the taxpayer during such submit an application containing such infor- lowing new part: taxable year which is part of a qualifying ad- mation as the Secretary may require during ‘‘PART III—RECOVERY ZONE BONDS vanced energy project— the 3-year period beginning on the date the ‘‘Sec. 1400U–1. Allocation of recovery zone ‘‘(A)(i) the construction, reconstruction, or Secretary establishes the program under bonds. erection of which is completed by the tax- paragraph (1). ‘‘Sec. 1400U–2. Recovery zone economic de- payer after October 31, 2008, or ‘‘(B) TIME TO MEET CRITERIA FOR CERTIFI- velopment bonds. ‘‘(ii) which is acquired by the taxpayer if CATION.—Each applicant for certification ‘‘Sec. 1400U–3. Recovery zone facility bonds. the original use of such eligible property shall have 2 years from the date of accept- ‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE commences with the taxpayer after October ance by the Secretary of the application dur- BONDS. 31, 2008, and ing which to provide to the Secretary evi- ‘‘(a) ALLOCATIONS.— ‘‘(B) with respect to which depreciation (or dence that the requirements of the certifi- ‘‘(1) IN GENERAL.—The Secretary shall allo- amortization in lieu of depreciation) is al- cation have been met. cate the national recovery zone economic de- lowable. ‘‘(C) PERIOD OF ISSUANCE.—An applicant velopment bond limitation and the national ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED which receives a certification shall have 5 recovery zone facility bond limitation PROPERTY.—Rules similar to section 48(a)(4) years from the date of issuance of the certifi- among the States— (without regard to subparagraph (D) thereof) cation in order to place the project in service ‘‘(A) by allocating 1 percent of each such shall apply for purposes of this section. and if such project is not placed in service by limitation to each State, and ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI- that time period then the certification shall ‘‘(B) by allocating the remainder of each TURES RULES MADE APPLICABLE.—Rules simi- no longer be valid. such limitation among the States in the pro- lar to the rules of subsections (c)(4) and (d) of ‘‘(3) SELECTION CRITERIA.—In determining portion that each State’s 2008 State employ- section 46 (as in effect on the day before the which qualifying advanced energy projects ment decline bears to the aggregate of the enactment of the Revenue Reconciliation to certify under this section, the Secretary 2008 State employment declines for all of the Act of 1990) shall apply for purposes of this shall take into consideration only those States. section. projects where there is a reasonable expecta- ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For ‘‘(4) LIMITATION.—The amount which is tion of commercial viability. purposes of this subsection, the term ‘2008 treated for all taxable years with respect to ‘‘(4) REVIEW AND REDISTRIBUTION.— State employment decline’ means, with re- any qualifying advanced energy project shall ‘‘(A) REVIEW.—Not later than 6 years after spect to any State, the excess (if any) of— not exceed the amount designated by the the date of enactment of this section, the ‘‘(A) the number of individuals employed in Secretary as eligible for the credit under this Secretary shall review the credits allocated such State determined for December 2007, section. under this section as of the date which is 6 over ‘‘(c) DEFINITIONS.— years after the date of enactment of this sec- ‘‘(B) the number of individuals employed in ‘‘(1) QUALIFYING ADVANCED ENERGY tion. such State determined for December 2008. PROJECT.— ‘‘(B) REDISTRIBUTION.—The Secretary may ‘‘(3) ALLOCATIONS BY STATES.— ‘‘(A) IN GENERAL.—The term ‘qualifying ad- reallocate credits awarded under this section ‘‘(A) IN GENERAL.—Each State with respect vanced energy project’ means a project— if the Secretary determines that— to which an allocation is made under para- ‘‘(i) which re-equips, expands, or estab- ‘‘(i) there is an insufficient quantity of graph (1) shall reallocate such allocation lishes a manufacturing facility for the pro- qualifying applications for certification among the counties and large municipalities duction of property which is— pending at the time of the review, or in such State in the proportion the each such ‘‘(I) designed to be used to produce energy ‘‘(ii) any certification made pursuant to county’s or municipality’s 2008 employment from the sun, wind, geothermal deposits paragraph (2) has been revoked pursuant to decline bears to the aggregate of the 2008 em- (within the meaning of section 613(e)(2)), or paragraph (2)(B) because the project subject ployment declines for all the counties and other renewable resources, to the certification has been delayed as a re- municipalities in such State.

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‘‘(B) LARGE MUNICIPALITIES.—For purposes ‘‘(B) such bond is issued before January 1, ‘‘(A) IN GENERAL.—For purposes of this sec- of subparagraph (A), the term ‘large munici- 2011, and tion, the term ‘tribal economic development pality’ means a municipality with a popu- ‘‘(C) the issuer designates such bond for bond’ means any bond issued by an Indian lation of more than 100,000. purposes of this section. tribal government— ‘‘(C) DETERMINATION OF LOCAL EMPLOYMENT ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES- ‘‘(i) the interest on which would be exempt DECLINES.—For purposes of this paragraph, IGNATED.—The maximum aggregate face from tax under section 103 if issued by a the employment decline of any municipality amount of bonds which may be designated by State or local government, and or county shall be determined in the same any issuer under paragraph (1) shall not ex- ‘‘(ii) which is designated by the Indian manner as determining the State employ- ceed the amount of recovery zone facility tribal government as a tribal economic de- ment decline under paragraph (2), except bond limitation allocated to such issuer velopment bond for purposes of this sub- that in the case of a municipality any por- under section 1400U–1. section. tion of which is in a county, such portion ‘‘(c) RECOVERY ZONE PROPERTY.—For pur- ‘‘(B) EXCEPTIONS.—The term tribal eco- shall be treated as part of such municipality poses of this section— nomic development bond shall not include and not part of such county. ‘‘(1) IN GENERAL.—The term ‘recovery zone any bond issued as part of an issue if any ‘‘(4) NATIONAL LIMITATIONS.— property’ means any property to which sec- portion of the proceeds of such issue are used ‘‘(A) RECOVERY ZONE ECONOMIC DEVELOP- tion 168 applies (or would apply but for sec- to finance— MENT BONDS.—There is a national recovery tion 179) if— ‘‘(i) any portion of a building in which zone economic development bond limitation ‘‘(A) such property was acquired by the class II or class III gaming (as defined in sec- of $10,000,000,000. taxpayer by purchase (as defined in section tion 4 of the Indian Gaming Regulatory Act) ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 179(d)(2)) after the date on which the designa- is conducted or housed or any other property There is a national recovery zone facility tion of the recovery zone took effect, actually used in the conduct of such gaming, bond limitation of $15,000,000,000. ‘‘(B) the original use of which in the recov- or ‘‘(b) RECOVERY ZONE.—For purposes of this ery zone commences with the taxpayer, and ‘‘(ii) any facility located outside the Indian part, the term ‘recovery zone’ means— ‘‘(C) substantially all of the use of which is reservation (as defined in section 168(j)(6)). ‘‘(1) any area designated by the issuer as in the recovery zone and is in the active con- ‘‘(C) LIMITATION ON AMOUNT OF BONDS DES- having significant poverty, unemployment, duct of a qualified business by the taxpayer IGNATED.—The maximum aggregate face rate of home foreclosures, or general dis- in such zone. amount of bonds which may be designated by tress, and ‘‘(2) QUALIFIED BUSINESS.—The term ‘quali- any Indian tribal government under subpara- ‘‘(2) any area for which a designation as an fied business’ means any trade or business graph (A) shall not exceed the amount of na- empowerment zone or renewal community is except that— tional tribal economic development bond in effect. ‘‘(A) the rental to others of real property limitation allocated to such government ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DE- located in a recovery zone shall be treated as under paragraph (1).’’. VELOPMENT BONDS. a qualified business only if the property is (b) STUDY.—The Secretary of the Treasury, ‘‘(a) IN GENERAL.—In the case of a recovery not residential rental property (as defined in or the Secretary’s delegate, shall conduct a zone economic development bond— section 168(e)(2)), and study of the effects of the amendment made ‘‘(1) such bond shall be treated as a quali- ‘‘(B) such term shall not include any trade by subsection (a). Not later than 1 year after fied bond for purposes of section 6431, and or business consisting of the operation of the date of the enactment of this Act, the ‘‘(2) subsection (b) of such section shall be any facility described in section 144(c)(6)(B). Secretary of the Treasury, or the Secretary’s applied by substituting ‘40 percent’ for ‘35 ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN- delegate, shall report to Congress on the re- percent’. OVATIONS AND SALE-LEASEBACK.—Rules simi- sults of the study conducted under this para- graph, including the Secretary’s rec- ‘‘(b) RECOVERY ZONE ECONOMIC DEVELOP- lar to the rules of subsections (a)(2) and (b) ommendations regarding such amendment. MENT BOND.— of section 1397D shall apply for purposes of this subsection. (c) EFFECTIVE DATE.—The amendment ‘‘(1) IN GENERAL.—For purposes of this sec- made by subsection (a) shall apply to obliga- tion, the term ‘recovery zone economic de- ‘‘(d) NONAPPLICATION OF CERTAIN RULES.— Sections 146 (relating to volume cap) and tions issued after the date of the enactment velopment bond’ means any build America of this Act. bond (as defined in section 54AA(d)) issued 147(d) (relating to acquisition of existing SEC. 1403. MODIFICATIONS TO NEW MARKETS before January 1, 2011, as part of issue if— property not permitted) shall not apply to any recovery zone facility bond.’’. TAX CREDIT. ‘‘(A) 100 percent of the available project (a) INCREASE IN NATIONAL LIMITATION.— proceeds (as defined in section 54A) of such (b) CLERICAL AMENDMENT.—The table of parts for subchapter Y of chapter 1 of such (1) IN GENERAL.—Section 45D(f)(1) is issue are to be used for one or more qualified amended— economic development purposes, and Code is amended by adding at the end the following new item: (A) by striking ‘‘and’’ at the end of sub- ‘‘(B) the issuer designates such bond for paragraph (C), purposes of this section. ‘‘PART III. RECOVERY ZONE BONDS.’’. (B) by striking ‘‘, 2007, 2008, and 2009.’’ in ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES- (c) EFFECTIVE DATE.—The amendments subparagraph (D), and inserting ‘‘and 2007,’’, IGNATED.—The maximum aggregate face made by this section shall apply to obliga- and amount of bonds which may be designated by tions issued after the date of the enactment (C) by adding at the end the following new any issuer under paragraph (1) shall not ex- of this Act. subparagraphs: ceed the amount of the recovery zone eco- SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT ‘‘(E) $5,000,000,000 for 2008, and nomic development bond limitation allo- BONDS. ‘‘(F) $5,000,000,000 for 2009.’’. cated to such issuer under section 1400U–1. (a) IN GENERAL.—Section 7871 is amended (2) SPECIAL RULE FOR ALLOCATION OF IN- ‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT by adding at the end the following new sub- CREASED 2008 LIMITATION.—The amount of the PURPOSE.—For purposes of this section, the section: increase in the new markets tax credit limi- term ‘qualified economic development pur- ‘‘(f) TRIBAL ECONOMIC DEVELOPMENT tation for calendar year 2008 by reason of the pose’ means expenditures for purposes of pro- BONDS.— amendments made by subsection (a) shall be moting development or other economic ac- ‘‘(1) ALLOCATION OF LIMITATION.— allocated in accordance with section 45D(f)(2) tivity in a recovery zone, including— ‘‘(A) IN GENERAL.—The Secretary shall al- of the Internal Revenue Code of 1986 to quali- ‘‘(1) capital expenditures paid or incurred locate the national tribal economic develop- fied community development entities (as de- with respect to property located in such ment bond limitation among the Indian trib- fined in section 45D(c) of such Code) which— zone, al governments in such manner as the Sec- (A) submitted an allocation application ‘‘(2) expenditures for public infrastructure retary, in consultation with the Secretary of with respect to calendar year 2008, and and construction of public facilities, and the Interior, determines appropriate. (B)(i) did not receive an allocation for such ‘‘(3) expenditures for job training and edu- ‘‘(B) NATIONAL LIMITATION.—There is a na- calendar year, or cational programs. tional tribal economic development bond (ii) received an allocation for such cal- ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. limitation of $2,000,000,000. endar year in an amount less than the ‘‘(a) IN GENERAL.—For purposes of part IV ‘‘(2) BONDS TREATED AS EXEMPT FROM TAX.— amount requested in the allocation applica- of subchapter B (relating to tax exemption In the case of a tribal economic development tion. requirements for State and local bonds), the bond— (b) ALTERNATIVE MINIMUM TAX RELIEF.— term ‘exempt facility bond’ includes any re- ‘‘(A) notwithstanding subsection (c), such (1) IN GENERAL.—Section 38(c)(4)(B) is covery zone facility bond. bond shall be treated for purposes of this amended by redesignating clauses (v) ‘‘(b) RECOVERY ZONE FACILITY BOND.— title in the same manner as if such bond through (viii) as clauses (vi) through (ix), re- ‘‘(1) IN GENERAL.—For purposes of this sec- were issued by a State, spectively, and by inserting after clause (iv) tion, the term ‘recovery zone facility bond’ ‘‘(B) the Indian tribal government issuing the following new clause: means any bond issued as part of an issue such bond and any instrumentality of such ‘‘(v) the credit determined under section if— Indian tribal government shall be treated as 45D to the extent that such credit is attrib- ‘‘(A) 95 percent or more of the net proceeds a State for purposes of section 141, and utable to a qualified equity investment (as defined in section 150(a)(3)) of such issue ‘‘(C) section 146 shall not apply. which is designated as such under section are to be used for recovery zone property, ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND.— 45D(b)(1)(C) pursuant to an allocation of the

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00083 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.046 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1186 CONGRESSIONAL RECORD — SENATE January 30, 2009 new markets tax credit limitation for cal- rectly to make or finance loans to 1 or more means any bond issued as part of an issue endar year 2009,’’. ultimate borrowers each of whom is a quali- if— (2) EFFECTIVE DATE.—The amendments fied borrower. ‘‘(1) 100 percent of the available project made by this subsection shall apply to cred- ‘‘(v) QUALIFIED PORTION.—For purposes of proceeds of such issue are to be used for the its determined under section 45D of the In- this subparagraph, the term ‘qualified por- construction, rehabilitation, or repair of a ternal Revenue Code of 1986 in taxable years tion’ means that portion of the proceeds public school facility or for the acquisition ending after the date of the enactment of which are used with respect to each qualified of land on which such a facility is to be con- this Act, and to carrybacks of such credits. borrower under the issue. structed with part of the proceeds of such Subtitle F—Infrastructure Financing Tools ‘‘(vi) QUALIFIED BORROWER.—For purposes issue, of this subparagraph, the term ‘qualified bor- ‘‘(2) the bond is issued by a State or local PART I—IMPROVED MARKETABILITY FOR rower’ means a borrower which is a State or government within the jurisdiction of which TAX-EXEMPT BONDS political subdivision thereof or an organiza- such school is located, and SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION tion described in section 501(c)(3) and exempt ‘‘(3) the issuer designates such bond for FOR TAX-EXEMPT INTEREST EX- from taxation under section 501(a).’’. purposes of this section. PENSE OF FINANCIAL INSTITU- (b) EFFECTIVE DATE.—The amendment TIONS. ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES- made by this section shall apply to obliga- (a) IN GENERAL.—Subsection (b) of section IGNATED.—The maximum aggregate face tions issued after December 31, 2008. 265 is amended by adding at the end the fol- amount of bonds issued during any calendar lowing new paragraph: SEC. 1503. TEMPORARY MODIFICATION OF AL- year which may be designated under sub- TERNATIVE MINIMUM TAX LIMITA- section (a) by any issuer shall not exceed the ‘‘(7) DE MINIMIS EXCEPTION FOR BONDS TIONS ON TAX-EXEMPT BONDS. ISSUED DURING 2009 OR 2010.— limitation amount allocated under sub- (a) INTEREST ON PRIVATE ACTIVITY BONDS ‘‘(A) IN GENERAL.—In applying paragraph section (d) for such calendar year to such ISSUED DURING 2009 AND 2010 NOT TREATED AS (2)(A), there shall not be taken into account issuer. TAX PREFERENCE ITEM.—Subparagraph (C) of tax-exempt obligations issued during 2009 or ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF section 57(a)(5) is amended by adding at the BONDS DESIGNATED.—There is a national 2010. end a new clause: ‘‘(B) LIMITATION.—The amount of tax-ex- qualified school construction bond limita- ‘‘(vi) EXCEPTION FOR BONDS ISSUED IN 2009 empt obligations not taken into account by tion for each calendar year. Such limitation AND 2010.—For purposes of clause (i), the term is— reason of subparagraph (A) shall not exceed ‘private activity bond’ shall not include any 2 percent of the amount determined under ‘‘(1) $5,000,000,000 for 2009, bond issued after December 31, 2008, and be- ‘‘(2) $5,000,000,000 for 2010, and paragraph (2)(B). fore January 1, 2011. For purposes of the pre- ‘‘(C) REFUNDINGS.—For purposes of this ‘‘(3) except as provided in subsection (e), ceding sentence, a refunding bond (whether a zero after 2010. paragraph, a refunding bond (whether a cur- current or advance refunding) shall be treat- ‘‘(d) LIMITATION ALLOCATED AMONG rent or advance refunding) shall be treated ed as issued on the date of the issuance of STATES.— as issued on the date of the issuance of the the refunded bond (or in the case of a series ‘‘(1) IN GENERAL.—The limitation applica- refunded bond (or in the case of a series of of refundings, the original bond).’’. ble under subsection (c) for any calendar refundings, the original bond).’’. (b) NO ADJUSTMENT TO ADJUSTED CURRENT year shall be allocated by the Secretary (b) TREATMENT AS FINANCIAL INSTITUTION EARNINGS FOR INTEREST ON TAX-EXEMPT among the States in proportion to the re- PREFERENCE ITEM.—Clause (iv) of section BONDS ISSUED DURING 2009 AND 2010.—Sub- spective numbers of children in each State 291(e)(1)(B) is amended by adding at the end paragraph (B) of section 56(g)(4) is amended who have attained age 5 but not age 18 for the following: ‘‘That portion of any obliga- by adding at the end the following new the most recent fiscal year ending before tion not taken into account under paragraph clause: such calendar year. The limitation amount (2)(A) of section 265(b) by reason of para- ‘‘(iv) TAX EXEMPT INTEREST ON BONDS allocated to a State under the preceding sen- graph (7) of such section shall be treated for ISSUED IN 2009 AND 2010.—Clause (i) shall not tence shall be allocated by the State to purposes of this section as having been ac- apply in the case of any interest on a bond issuers within such State. quired on August 7, 1986.’’. issued after December 31, 2008, and before ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— (c) EFFECTIVE DATE.—The amendments January 1, 2011. For purposes of the pre- ‘‘(A) IN GENERAL.—The Secretary shall ad- made by this section shall apply to obliga- ceding sentence, a refunding bond (whether a just the allocations under this subsection for tions issued after December 31, 2008. current or advance refunding) shall be treat- any calendar year for each State to the ex- SEC. 1502. MODIFICATION OF SMALL ISSUER EX- ed as issued on the date of the issuance of tent necessary to ensure that the amount al- CEPTION TO TAX-EXEMPT INTEREST the refunded bond (or in the case of a series located to such State under this subsection EXPENSE ALLOCATION RULES FOR of refundings, the original bond).’’. FINANCIAL INSTITUTIONS. for such year is not less than an amount (c) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Paragraph (3) of section made by this section shall apply to obliga- equal to such State’s adjusted minimum per- 265(b) (relating to exception for certain tax- tions issued after December 31, 2008. centage of the amount to be allocated under exempt obligations) is amended by adding at paragraph (1) for the calendar year. SEC. 1504. MODIFICATION TO HIGH SPEED INTER- the end the following new subparagraph: ‘‘(B) MINIMUM PERCENTAGE.—A State’s min- CITY RAIL FACILITY BONDS. ‘‘(G) SPECIAL RULES FOR OBLIGATIONS imum percentage for any calendar year is (a) IN GENERAL.—Paragraph (1) of section ISSUED DURING 2009 AND 2010.— equal to the product of— 142(i) is amended by striking ‘‘operate at ‘‘(i) INCREASE IN LIMITATION.—In the case of ‘‘(i) the quotient of— speeds in excess of’’ and inserting ‘‘be capa- obligations issued during 2009 or 2010, sub- ‘‘(I) the amount the State is eligible to re- ble of attaining a maximum speed in excess paragraphs (C)(i), (D)(i), and (D)(iii)(II) shall ceive under section 1124(d) of the Elementary of’’. each be applied by substituting ‘$30,000,000’ and Secondary Education Act of 1965 (20 (b) EFFECTIVE DATE.—The amendment for ‘$10,000,000’. made by this section shall apply to bonds U.S.C. 6333(d)) for the most recent fiscal year ‘‘(ii) QUALIFIED 501(c)(3) BONDS TREATED AS issued after the date of the enactment of this ending before such calendar year, divided by ISSUED BY EXEMPT ORGANIZATION.—In the case Act. ‘‘(II) the amount all States are eligible to of a qualified 501(c)(3) bond (as defined in sec- receive under section 1124 of such Act (20 tion 145) issued during 2009 or 2010, this para- PART II—DELAY IN APPLICATION OF U.S.C. 6333) for such fiscal year, multiplied graph shall be applied by treating the WITHHOLDING TAX ON GOVERNMENT by 501(c)(3) organization for whose benefit such CONTRACTORS ‘‘(ii) 100. bond was issued as the issuer. SEC. 1511. DELAY IN APPLICATION OF WITH- ‘‘(3) ALLOCATIONS TO CERTAIN POSSES- ‘‘(iii) SPECIAL RULE FOR QUALIFIED HOLDING TAX ON GOVERNMENT SIONS.—The amount to be allocated under CONTRACTORS. FINANCINGS.—In the case of a qualified fi- paragraph (1) to any possession of the United nancing issue issued during 2009 or 2010— Subsection (b) of section 511 of the Tax In- States other than Puerto Rico shall be the ‘‘(I) subparagraph (F) shall not apply, and crease Prevention and Reconciliation Act of amount which would have been allocated if ‘‘(II) any obligation issued as a part of such 2005 is amended by striking ‘‘December 31, all allocations under paragraph (1) were issue shall be treated as a qualified tax-ex- 2010’’ and inserting ‘‘December 31, 2011’’. made on the basis of respective populations empt obligation if the requirements of this PART III—TAX CREDIT BONDS FOR of individuals below the poverty line (as de- paragraph are met with respect to each SCHOOLS fined by the Office of Management and Budg- qualified portion of the issue (determined by SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION et). In making other allocations, the amount treating each qualified portion as a separate BONDS. to be allocated under paragraph (1) shall be issue which is issued by the qualified bor- (a) IN GENERAL.—Subpart I of part IV of reduced by the aggregate amount allocated rower with respect to which such portion re- subchapter A of chapter 1 is amended by add- under this paragraph to possessions of the lates). ing at the end the following new section: United States. ‘‘(iv) QUALIFIED FINANCING ISSUE.—For pur- ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In poses of this subparagraph, the term ‘quali- BONDS. addition to the amounts otherwise allocated fied financing issue’ means any composite, ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION under this subsection, $200,000,000 for cal- pooled, or other conduit financing issue the BOND.—For purposes of this subchapter, the endar year 2009, and $200,000,000 for calendar proceeds of which are used directly or indi- term ‘qualified school construction bond’ year 2010, shall be allocated by the Secretary

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of the Interior for purposes of the construc- ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the terest payment date under such bond) to the tion, rehabilitation, and repair of schools credit allowable under subsection (a) exceeds issuer of such bond (or to any person who funded by the Bureau of Indian Affairs. In the limitation imposed by paragraph (1) for makes such interest payments on behalf of the case of amounts allocated under the pre- such taxable year, such excess shall be car- the issuer) 35 percent of the interest payable ceding sentence, Indian tribal governments ried to the succeeding taxable year and under such bond on such date. (as defined in section 7701(a)(40)) shall be added to the credit allowable under sub- ‘‘(c) APPLICATION OF ARBITRAGE RULES.— treated as qualified issuers for purposes of section (a) for such taxable year (determined For purposes of section 148, the yield on a this subchapter. before the application of paragraph (1) for qualified bond shall be reduced by the credit ‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If such succeeding taxable year). allowed under this section. for any calendar year— ‘‘(d) BUILD AMERICA BOND.— ‘‘(d) INTEREST PAYMENT DATE.—For pur- ‘‘(1) the amount allocated under subsection ‘‘(1) IN GENERAL.—For purposes of this sec- poses of this subsection, the term ‘interest (d) to any State, exceeds tion, the term ‘build America bond’ means payment date’ means each date on which in- ‘‘(2) the amount of bonds issued during any obligation (other than a private activity terest is payable by the issuer under the such year which are designated under sub- bond) if— terms of the bond. section (a) pursuant to such allocation, ‘‘(A) the interest on such obligation would ‘‘(e) QUALIFIED BOND.—For purposes of this the limitation amount under such subsection (but for this section) be excludable from subsection, the term ‘qualified bond’ has the for such State for the following calendar gross income under section 103, meaning given such term in section year shall be increased by the amount of ‘‘(B) such obligation is issued before Janu- 54AA(g).’’. such excess. A similar rule shall apply to the ary 1, 2012, and (c) CONFORMING AMENDMENTS.— amounts allocated under subsection (d)(4).’’. ‘‘(C) the issuer makes an irrevocable elec- (1) Section 1324(b)(2) of title 31, United (b) CONFORMING AMENDMENTS.— tion to have this section apply. States Code, is amended by striking ‘‘or (1) Paragraph (1) of section 54A(d) is ‘‘(2) APPLICABLE RULES.—For purposes of 6428’’ and inserting ‘‘6428, or 6431,’’. amended by striking ‘‘or’’ at the end of sub- applying paragraph (1)— (2) Section 54A(c)(1)(B) is amended by paragraph (C), by inserting ‘‘or’’ at the end ‘‘(A) a build America bond shall not be striking ‘‘subpart C’’ and inserting ‘‘subparts of subparagraph (D), and by inserting after treated as federally guaranteed by reason of C and J’’. subparagraph (D) the following new subpara- the credit allowed under subsection (a) or (3) Sections 54(c)(2), 1397E(c)(2), and graph: section 6431, 1400N(l)(3)(B) are each amended by striking ‘‘(E) a qualified school construction ‘‘(B) the yield on a build America bond ‘‘and I’’ and inserting ‘‘, I, and J’’. bond,’’. shall be determined without regard to the (4) Section 6401(b)(1) is amended by strik- (2) Subparagraph (C) of section 54A(d)(2) is credit allowed under subsection (a), and ing ‘‘and I’’ and inserting ‘‘I, and J’’. amended by striking ‘‘and’’ at the end of ‘‘(C) a bond shall not be treated as a build (5) The table of subparts for part IV of sub- clause (iii), by striking the period at the end America bond if the issue price has more chapter A of chapter 1 is amended by adding of clause (iv) and inserting ‘‘, and’’, and by than a de minimis amount (determined at the end the following new item: adding at the end the following new clause: under rules similar to the rules of section ‘‘Subpart J. Build America bonds.’’. ‘‘(v) in the case of a qualified school con- 1273(a)(3)) of premium over the stated prin- struction bond, a purpose specified in section cipal amount of the bond. (6) The table of section for subchapter B of 54F(a)(1).’’. ‘‘(e) INTEREST PAYMENT DATE.—For pur- chapter 65 is amended by adding at the end (3) The table of sections for subpart I of poses of this section, the term ‘interest pay- the following new item: part IV of subchapter A of chapter 1 is ment date’ means any date on which the ‘‘Sec. 6431. Credit for qualified bonds al- amended by adding at the end the following holder of record of the build America bond is lowed to issuer.’’. new item: entitled to a payment of interest under such (d) TRANSITIONAL COORDINATION WITH ‘‘Sec. 54F. Qualified school construction bond. STATE LAW.—Except as otherwise provided bonds.’’. ‘‘(f) SPECIAL RULES.— by a State after the date of the enactment of NTEREST ON BUILD AMERICA BONDS IN (c) EFFECTIVE DATE.—The amendments ‘‘(1) I - this Act, the interest on any build America made by this section shall apply to obliga- CLUDIBLE IN GROSS INCOME FOR FEDERAL IN- bond (as defined in section 54AA of the Inter- tions issued after the date of the enactment COME TAX PURPOSES.—For purposes of this nal Revenue Code of 1986, as added by this of this Act. title, interest on any build America bond section) and the amount of any credit deter- shall be includible in gross income. SEC. 1522. EXTENSION AND EXPANSION OF mined under such section with respect to QUALIFIED ZONE ACADEMY BONDS. ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules such bond shall be treated for purposes of the (a) IN GENERAL.—Section 54E(c)(1) is similar to the rules of subsections (f), (g), income tax laws of such State as being ex- amended by striking ‘‘and 2009’’ and insert- (h), and (i) of section 54A shall apply for pur- empt from Federal income tax. ing ‘‘and $1,400,000,000 for 2009 and 2010’’. poses of the credit allowed under subsection (e) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendment (a). made by this section shall apply to obliga- ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS made by this section shall apply to obliga- tions issued after the date of the enactment ISSUED BEFORE 2011.—In the case of a quali- tions issued after December 31, 2008. of this Act. PART IV—BUILD AMERICA BONDS fied bond issued before January 1, 2011— ‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.— Subtitle G—Economic Recovery Payments to SEC. 1531. BUILD AMERICA BONDS. In lieu of any credit allowed under this sec- Certain Individuals (a) IN GENERAL.—Part IV of subchapter A tion with respect to such bond, the issuer of SEC. 1601. ECONOMIC RECOVERY PAYMENT TO of chapter 1 is amended by adding at the end such bond shall be allowed a credit as pro- RECIPIENTS OF SOCIAL SECURITY, the following new subpart: vided in section 6431. SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT BENEFITS, ‘‘Subpart J—Build America Bonds ‘‘(2) QUALIFIED BOND.—For purposes of this ‘‘Sec. 54AA. Build America bonds. AND VETERANS DISABILITY COM- subsection, the term ‘qualified bond’ means PENSATION OR PENSION BENEFITS. ‘‘SEC. 54AA. BUILD AMERICA BONDS. any build America bond issued as part of an (a) AUTHORITY TO MAKE PAYMENTS.— ‘‘(a) IN GENERAL.—If a taxpayer holds a issue if— (1) ELIGIBILITY.— build America bond on one or more interest ‘‘(A) 100 percent of the available project (A) IN GENERAL.—Subject to paragraph payment dates of the bond during any tax- proceeds (as defined in section 54A) of such (5)(B), the Secretary of the Treasury shall able year, there shall be allowed as a credit issue are to be used for capital expenditures, make a $300 payment to each individual who, against the tax imposed by this chapter for and the taxable year an amount equal to the sum for any month during the 3-month period ‘‘(B) the issuer makes an irrevocable elec- ending with the month which ends prior to of the credits determined under subsection tion to have this subsection apply. (b) with respect to such dates. the month that includes the date of the en- ‘‘(h) REGULATIONS.—The Secretary may actment of this Act, is entitled to a benefit ‘‘(b) AMOUNT OF CREDIT.—The amount of prescribe such regulations and other guid- payment described in clause (i), (ii), or (iii) the credit determined under this subsection ance as may be necessary or appropriate to of subparagraph (B) or is eligible for a SSI with respect to any interest payment date carry out this section and section 6431.’’. cash benefit described in subparagraph (C). for a build America bond is 35 percent of the (b) CREDIT FOR QUALIFIED BONDS ISSUED (B) BENEFIT PAYMENT DESCRIBED.—For pur- amount of interest payable by the issuer BEFORE 2011.—Subchapter B of chapter 65 is with respect to such date. amended by adding at the end the following poses of subparagraph (A): ‘‘(c) LIMITATION BASED ON AMOUNT OF new section: (i) TITLE II BENEFIT.—A benefit payment AX T .— ‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS AL- described in this clause is a monthly insur- ‘‘(1) IN GENERAL.—The credit allowed under LOWED TO ISSUER. ance benefit payable (without regard to sec- subsection (a) for any taxable year shall not ‘‘(a) IN GENERAL.—In the case of a qualified tions 202(j)(1) and 223(b) of the Social Secu- exceed the excess of— bond issued before January 1, 2011, the issuer rity Act (42 U.S.C. 402(j)(1), 423(b)) under— ‘‘(A) the sum of the regular tax liability of such bond shall be allowed a credit with (I) section 202(a) of such Act (42 U.S.C. (as defined in section 26(b)) plus the tax im- respect to each interest payment under such 402(a)); posed by section 55, over bond which shall be payable by the Secretary (II) section 202(b) of such Act (42 U.S.C. ‘‘(B) the sum of the credits allowable under as provided in subsection (b). 402(b)); this part (other than subpart C and this sub- ‘‘(b) PAYMENT OF CREDIT.—The Secretary (III) section 202(c) of such Act (42 U.S.C. part). shall pay (contemporaneously with each in- 402(c));

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(IV) section 202(d)(1)(B)(ii) of such Act (42 cent month of such individual’s entitlement (4) PAYMENTS SUBJECT TO OFFSET.—Not- U.S.C. 402(d)(1)(B)(ii)); in the 3-month period described in paragraph withstanding paragraph (3), for purposes of (V) section 202(e) of such Act (42 U.S.C. (1), such individual’s benefit under such section 3716 of title 31, United States Code, 402(e)); paragraph was not payable by reason of sub- any payment made under this section shall (VI) section 202(f) of such Act (42 U.S.C. section (x) or (y) of section 202 the Social Se- not be considered a benefit payment or cash 402(f)); curity Act (42 U.S.C. 402) or section 1129A of benefit made under the applicable program (VII) section 202(g) of such Act (42 U.S.C. such Act (42 U.S.C. 1320a-8a); described in subparagraph (B) or (C) of sub- 402(g)); (B) in the case of an individual entitled to section (a)(1) and all amounts paid shall be (VIII) section 202(h) of such Act (42 U.S.C. a benefit specified in paragraph (1)(B)(iii) if, subject to offset to collect delinquent debts. 402(h)); for the most recent month of such individ- (d) PAYMENT TO REPRESENTATIVE PAYEES (IX) section 223(a) of such Act (42 U.S.C. ual’s entitlement in the 3 month period de- AND FIDUCIARIES.— 423(a)); scribed in paragraph (1), such individual’s (1) IN GENERAL.—In any case in which an (X) section 227 of such Act (42 U.S.C. 427); benefit under such paragraph was not pay- individual who is entitled to a payment or able, or was reduced, by reason of section under subsection (a) and whose benefit pay- (XI) section 228 of such Act (42 U.S.C. 428). 1505, 5313, or 5313B of title 38, United States ment or cash benefit described in paragraph (ii) RAILROAD RETIREMENT BENEFIT.—A ben- Code; (1) of that subsection is paid to a representa- efit payment described in this clause is a (C) in the case of an individual entitled to tive payee or fiduciary, the payment under monthly annuity or pension payment pay- a benefit specified in paragraph (1)(C) if, for subsection (a) shall be made to the individ- able (without regard to section 5(a)(ii) of the such most recent month, such individual’s ual’s representative payee or fiduciary and Railroad Retirement Act of 1974 (45 U.S.C. benefit under such paragraph was not pay- the entire payment shall be used only for the 231d(a)(ii)) under— able by reason of subsection (e)(1)(A) or (e)(4) benefit of the individual who is entitled to (I) section 2(a)(1) of such Act (45 U.S.C. of section 1611 (42 U.S.C. 1382) or section the payment. 231a(a)(1)); 1129A of such Act (42 U.S.C. 1320a-8a); or (2) APPLICABILITY.— (II) section 2(c) of such Act (45 U.S.C. (D) in the case of any individual whose (A) PAYMENT ON THE BASIS OF A TITLE II OR 231a(c)); date of death occurs before the date on which SSI BENEFIT.—Section 1129(a)(3) of the Social (III) section 2(d)(1)(i) of such Act (45 U.S.C. the individual is certified under subsection Security Act (42 U.S.C. 1320a–8(a)(3)) shall 231a(d)(1)(i)); (b) to receive a payment under this section. apply to any payment made on the basis of an entitlement to a benefit specified in para- (IV) section 2(d)(1)(ii) of such Act (45 U.S.C. (5) TIMING AND MANNER OF PAYMENTS.— graph (1)(B)(i) or (1)(C) of subsection (a) in 231a(d)(1)(ii)); (A) IN GENERAL.—The Secretary of the the same manner as such section applies to (V) section 2(d)(1)(iii)(C) of such Act to an Treasury shall commence making payments a payment under title II or XVI of such Act. adult disabled child (45 U.S.C. under this section at the earliest practicable (B) PAYMENT ON THE BASIS OF A RAILROAD 231a(d)(1)(iii)(C)); date but in no event later than 120 days after RETIREMENT BENEFIT.—Section 13 of the Rail- (VI) section 2(d)(1)(iv) of such Act (45 the date of enactment of this Act. The Sec- road Retirement Act (45 U.S.C. 231l) shall U.S.C. 231a(d)(1)(iv)); retary of the Treasury may make any pay- apply to any payment made on the basis of (VII) section 2(d)(1)(v) of such Act (45 ment electronically to an individual in such an entitlement to a benefit specified in para- U.S.C. 231a(d)(1)(v)); or manner as if such payment was a benefit graph (1)(B)(ii) of subsection (a) in the same (VIII) section 7(b)(2) of such Act (45 U.S.C. payment or cash benefit to such individual manner as such section applies to a payment 231f(b)(2)) with respect to any of the benefit under the applicable program described in under such Act. payments described in clause (i) of this sub- subparagraph (B) or (C) of paragraph (1). (C) PAYMENT ON THE BASIS OF A VETERANS paragraph. (B) DEADLINE.—No payments shall be made BENEFIT.—Sections 5502, 6106, and 6108 of title (iii) VETERANS BENEFIT.—A benefit pay- under this section after December 31, 2010, 38, United States Code, shall apply to any ment described in this clause is a compensa- regardless of any determinations of entitle- payment made on the basis of an entitlement tion or pension payment payable under— ment to, or eligibility for, such payments to a benefit specified in paragraph (1)(B)(iii) (I) section 1110, 1117, 1121, 1131, 1141, or 1151 made after such date. of subsection (a) in the same manner as of title 38, United States Code; (b) IDENTIFICATION OF RECIPIENTS.—The those sections apply to a payment under (II) section 1310, 1312, 1313, 1315, 1316, or 1318 Commissioner of Social Security, the Rail- that title. of title 38, United States Code; road Retirement Board, and the Secretary of (e) APPROPRIATION.—Out of any sums in the (III) section 1513, 1521, 1533, 1536, 1537, 1541, Veterans Affairs shall certify the individuals entitled to receive payments under this sec- Treasury of the United States not otherwise 1542, or 1562 of title 38, United States Code; tion and provide the Secretary of the Treas- appropriated, the following sums are appro- or ury with the information needed to disburse priated for the period of fiscal years 2009 and (IV) section 1805, 1815, or 1821 of title 38, such payments. A certification of an indi- 2010 to carry out this section: United States Code, vidual shall be unaffected by any subsequent (1) For the Secretary of the Treasury— to a veteran, surviving spouse, child, or par- determination or redetermination of the in- (A) such sums as may be necessary to ent as described in paragraph (2), (3), dividual’s entitlement to, or eligibility for, a make payments under this section; and (4)(A)(ii), or (5) of section 101, title 38, United benefit specified in subparagraph (B) or (C) (B) $57,000,000 for administrative costs in- States Code, who received that benefit dur- of subsection (a)(1). curred in carrying out this section and sec- ing any month within the 3 month period (c) TREATMENT OF PAYMENTS.— tion 36A of the Internal Revenue Code of 1986 ending with the month which ends prior to (1) PAYMENT TO BE DISREGARDED FOR PUR- (as added by this Act). the month that includes the date of the en- POSES OF ALL FEDERAL AND FEDERALLY AS- (2) For the Commissioner of Social Secu- actment of this Act. SISTED PROGRAMS.—A payment under sub- rity, $90,000,000 for the Social Security Ad- (C) SSI CASH BENEFIT DESCRIBED.—A SSI section (a) shall not be regarded as income ministration’s Limitation on Administrative cash benefit described in this subparagraph and shall not be regarded as a resource for Expenses for costs incurred in carrying out is a cash benefit payable under section 1611 the month of receipt and the following 9 this section. (other than under subsection (e)(1)(B) of such months, for purposes of determining the eli- (3) For the Railroad Retirement Board, section) or 1619(a) of the Social Security Act gibility of the recipient (or the recipient’s $1,000,000 for administrative costs incurred in (42 U.S.C. 1382, 1382h). spouse or family) for benefits or assistance, carrying out this section. (2) REQUIREMENT.—A payment shall be or the amount or extent of benefits or assist- (4) For the Secretary of Veterans Affairs, made under paragraph (1) only to individuals ance, under any Federal program or under $100,000 for the Information Systems Tech- who reside in 1 of the 50 States, the District any State or local program financed in whole nology account and $7,100,000 for the General of Columbia, Puerto Rico, Guam, the United or in part with Federal funds. Operating Expenses account for administra- States Virgin Islands, American Samoa, or (2) PAYMENT NOT CONSIDERED INCOME FOR tive costs incurred in carrying out this sec- the Northern Mariana Islands. For purposes PURPOSES OF TAXATION.—A payment under tion. of the preceding sentence, the determination subsection (a) shall not be considered as Subtitle H—Trade Adjustment Assistance of the individual’s residence shall be based gross income for purposes of the Internal SEC. 1701. TEMPORARY EXTENSION OF TRADE on the current address of record under a pro- Revenue Code of 1986. ADJUSTMENT ASSISTANCE PRO- gram specified in paragraph (1). (3) PAYMENTS PROTECTED FROM ASSIGN- GRAM. (3) NO DOUBLE PAYMENTS.—An individual MENT.—The provisions of sections 207 and (a) ASSISTANCE FOR WORKERS.— shall be paid only 1 payment under this sec- 1631(d)(1) of the Social Security Act (42 (1) IN GENERAL.—Section 245(a) of the Trade tion, regardless of whether the individual is U.S.C. 407, 1383(d)(1)), section 14(a) of the Act of 1974 (19 U.S.C. 2317(a)) is amended by entitled to, or eligible for, more than 1 ben- Railroad Retirement Act of 1974 (45 U.S.C. striking ‘‘December 31, 2007’’ and inserting efit or cash payment described in paragraph 231m(a)), and section 5301 of title 38, United ‘‘December 31, 2010’’. (1). States Code, shall apply to any payment (2) ALTERNATIVE TRADE ADJUSTMENT AS- (4) LIMITATION.—A payment under this sec- made under subsection (a) as if such pay- SISTANCE.—Section 246(b)(1) of the Trade Act tion shall not be made— ment was a benefit payment or cash benefit of 1974 (19 U.S.C. 2318(b)(1)) is amended by (A) in the case of an individual entitled to to such individual under the applicable pro- striking ‘‘5 years’’ and inserting ‘‘7 years’’. a benefit specified in paragraph (1)(B)(i) or gram described in subparagraph (B) or (C) of (b) ASSISTANCE FOR FIRMS.—Section 256(b) paragraph (1)(B)(ii)(VIII) if, for the most re- subsection (a)(1). of the Trade Act of 1974 (19 U.S.C. 2346(b)) is

VerDate Nov 24 2008 03:10 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00086 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.046 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1189 amended by striking ‘‘2007, and $4,000,000 for (1) a finding of false statements or other (2) in the heading for subsection (b)(2), by the 3-month period beginning on October 1, misconduct by a recipient of such a pay- striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DE- 2007,’’ and inserting ‘‘December 31, 2010’’. ment; or CEMBER 31, 2009’’; and (c) ASSISTANCE FOR FARMERS.—Section (2) the reliquidation of an entry with re- (3) in subsection (b)(3), by striking ‘‘August 298(a) of the Trade Act of 1974 (19 U.S.C. spect to which such a payment was made. 27, 2009’’ and inserting ‘‘May 31, 2010’’. 2401g(a)) is amended by striking ‘‘through Subtitle J—Other Provisions (b) FINANCING PROVISIONS.—Section 4004 of 2007’’ and all that follows through the end pe- such Act is amended by adding at the end SEC. 1901. APPLICATION OF CERTAIN LABOR the following: riod and inserting ‘‘through December 31, STANDARDS TO PROJECTS FI- 2010 to carry out the purposes of this chap- ‘‘(e) TRANSFER OF FUNDS.—Notwith- NANCED WITH CERTAIN TAX-FA- standing any other provision of law, the Sec- ter.’’. VORED BONDS. retary of the Treasury shall transfer from (d) EXTENSION OF TERMINATION DATES.— Subchapter IV of chapter 31 of the title 40, the general fund of the Treasury (from funds Section 285 of the Trade Act of 1974 (19 U.S.C. United States Code, shall apply to projects not otherwise appropriated)— 2271 note) is amended by striking ‘‘December financed with the proceeds of— ‘‘(1) to the extended unemployment com- 31, 2007’’ each place it appears and inserting (1) any new clean renewable energy bond ‘‘December 31, 2010’’. pensation account (as established by section (as defined in section 54C of the Internal 905 of the Social Security Act) such sums as (e) SENSE OF THE SENATE REGARDING AD- Revenue Code of 1986) issued after the date of the Secretary of Labor estimates to be nec- JUSTMENT ASSISTANCE FOR COMMUNITIES.—It the enactment of this Act, essary to make payments to States under is the sense of the Senate that title II of the (2) any qualified energy conservation bond this title by reason of the amendments made Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as defined in section 54D of the Internal by section 2001(a) of the Assistance for Un- should be amended to assist any community Revenue Code of 1986) issued after the date of employed Workers and Struggling Families impacted by trade with economic adjust- the enactment of this Act, Act; and ment through— (3) any qualified zone academy bond (as de- ‘‘(2) to the employment security adminis- (1) the coordination of efforts by State and fined in section 54E of the Internal Revenue tration account (as established by section 901 local governments and economic organiza- Code of 1986) issued after the date of the en- of the Social Security Act) such sums as the tions; actment of this Act, Secretary of Labor estimates to be necessary (2) the coordination of Federal, State, and (4) any qualified school construction bond for purposes of assisting States in meeting local resources; (as defined in section 54F of the Internal administrative costs by reason of the amend- (3) the creation of community-based devel- Revenue Code of 1986), and ments referred to in paragraph (1). opment strategies; and (5) any recovery zone economic develop- There are appropriated from the general fund (4) the development and provision of train- ment bond (as defined in section 1400U–2 of of the Treasury, without fiscal year limita- ing programs. the Internal Revenue Code of 1986). tion, the sums referred to in the preceding (f) EFFECTIVE DATE.—The amendments SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT. sentence and such sums shall not be required made by this section shall be effective as of Subsection (b) of section 3101 of title 31, to be repaid.’’. January 1, 2008. United States Code, is amended by striking SEC. 2002. INCREASE IN UNEMPLOYMENT COM- Subtitle I—Prohibition on Collection of Cer- out the dollar limitation contained in such PENSATION BENEFITS. tain Payments Made Under the Continued subsection and inserting ‘‘$12,140,000,000,000’’. (a) FEDERAL-STATE AGREEMENTS.—Any State which desires to do so may enter into Dumping and Subsidy Offset Act of 2000 TITLE II—ASSISTANCE FOR UNEMPLOYED and participate in an agreement under this SEC. 1801. PROHIBITION ON COLLECTION OF WORKERS AND STRUGGLING FAMILIES section with the Secretary of Labor (herein- CERTAIN PAYMENTS MADE UNDER SEC. 2000. SHORT TITLE; TABLE OF CONTENTS. THE CONTINUED DUMPING AND after in this section referred to as the ‘‘Sec- SUBSIDY OFFSET ACT OF 2000. (a) SHORT TITLE.—This title may be cited retary’’). Any State which is a party to an as the ‘‘Assistance for Unemployed Workers (a) IN GENERAL.—Notwithstanding any agreement under this section may, upon pro- other provision of law, neither the Secretary and Struggling Families Act’’. viding 30 days’ written notice to the Sec- (b) TABLE OF CONTENTS.—The table of con- of Homeland Security nor any other person retary, terminate such agreement. tents for this title is as follows: ROVISIONS OF AGREEMENT.— may— (b) P (1) ADDITIONAL COMPENSATION.—Any agree- (1) require repayment of, or attempt in any TITLE II—ASSISTANCE FOR UNEM- ment under this section shall provide that other way to recoup, any payments described PLOYED WORKERS AND STRUGGLING the State agency of the State will make pay- in subsection (b); or FAMILIES ments of regular compensation to individ- (2) offset any past, current, or future dis- Sec. 2000. Short title; table of contents. uals in amounts and to the extent that they tributions of antidumping or countervailing Subtitle A—Unemployment Insurance would be determined if the State law of the duties assessed with respect to imports from Sec. 2001. Extension of emergency unem- State were applied, with respect to any week countries that are not parties to the North ployment compensation pro- for which the individual is (disregarding this American Free Trade Agreement in an at- gram. section) otherwise entitled under the State tempt to recoup any payments described in Sec. 2002. Increase in unemployment com- law to receive regular compensation, as if subsection (b). pensation benefits. such State law had been modified in a man- (b) PAYMENTS DESCRIBED.—Payments de- Sec. 2003. Unemployment compensation ner such that the amount of regular com- scribed in this subsection are payments of modernization. pensation (including dependents’ allowances) antidumping or countervailing duties made Sec. 2004. Temporary assistance for States payable for any week shall be equal to the pursuant to the Continued Dumping and with advances. amount determined under the State law (be- Subsidy Offset Act of 2000 (section 754 of the Subtitle B—Assistance for Vulnerable fore the application of this paragraph) plus Tariff Act of 1930 (19 U.S.C. 1675c; repealed by Individuals an additional $25. subtitle F of title VII of the Deficit Reduc- LLOWABLE METHODS OF PAYMENT.—Any Sec. 2101. Emergency fund for TANF pro- (2) A tion Act of 2005 (Public Law 109–171; 120 Stat. additional compensation provided for in ac- gram. 154))) that were— cordance with paragraph (1) shall be payable Sec. 2102. Extension of TANF supplemental (1) assessed and paid on imports of goods either— grants. from countries that are parties to the North (A) as an amount which is paid at the same Sec. 2103. Clarification of authority of states American Free Trade Agreement; and time and in the same manner as any regular to use tanf funds carried over (2) distributed on or after January 1, 2001, compensation otherwise payable for the from prior years to provide tanf and before January 1, 2006. week involved; or benefits and services. (c) PAYMENT OF FUNDS COLLECTED OR WITH- (B) at the option of the State, by payments HELD.—Not later than the date that is 60 Sec. 2104. Temporary reinstatement of au- thority to provide Federal which are made separately from, but on the days after the date of the enactment of this same weekly basis as, any regular compensa- Act, the Secretary of Homeland Security matching payments for State spending of child support incen- tion otherwise payable. shall— (c) NONREDUCTION RULE.—An agreement tive payments. (1) refund any repayments, or any other under this section shall not apply (or shall recoupment, of payments described in sub- Subtitle A—Unemployment Insurance cease to apply) with respect to a State upon section (b); and SEC. 2001. EXTENSION OF EMERGENCY UNEM- a determination by the Secretary that the (2) fully distribute any antidumping or PLOYMENT COMPENSATION PRO- method governing the computation of reg- countervailing duties that the U.S. Customs GRAM. ular compensation under the State law of and Border Protection is withholding as an (a) IN GENERAL.—Section 4007 of the Sup- that State has been modified in a manner offset as described in subsection (a)(2). plemental Appropriations Act, 2008 (Public such that— (d) LIMITATION.—Nothing in this section Law 110-252; 26 U.S.C. 3304 note), as amended (1) the average weekly benefit amount of shall be construed to prevent the Secretary by section 4 of the Unemployment Com- regular compensation which will be payable of Homeland Security, or any other person, pensation Extension Act of 2008 (Public Law during the period of the agreement (deter- from requiring repayment of, or attempting 110-449; 122 Stat. 5015), is amended— mined disregarding any additional amounts to otherwise recoup, any payments described (1) by striking ‘‘March 31, 2009’’ each place attributable to the modification described in in subsection (b) as a result of— it appears and inserting ‘‘December 31, 2009’’; subsection (b)(1)) will be less than

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00087 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.046 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1190 CONGRESSIONAL RECORD — SENATE January 30, 2009 (2) the average weekly benefit amount of the same manner as if those benefits were ‘‘(i) one-third shall be transferred to the regular compensation which would otherwise regular compensation. account of such State upon a certification have been payable during such period under (2) ELIGIBILITY AND TERMINATION RULES.— under paragraph (4)(B) that the State law of the State law, as in effect on December 31, Additional compensation (as described in such State meets the requirements of para- 2008. subsection (b)(1))— graph (2); and (d) PAYMENTS TO STATES.— (A) shall not be payable, pursuant to this ‘‘(ii) the remainder shall be transferred to (1) IN GENERAL.— subsection, with respect to any unemploy- the account of such State upon a certifi- (A) FULL REIMBURSEMENT.—There shall be ment benefits described in subsection (i)(3) cation under paragraph (4)(B) that the State paid to each State which has entered into an for any week beginning on or after the date law of such State meets the requirements of agreement under this section an amount specified in subsection (e)(1)(B), except in the paragraph (3). equal to 100 percent of— case of an individual who was eligible to re- ‘‘(2) The State law of a State meets the re- (i) the total amount of additional com- ceive additional compensation (as so de- quirements of this paragraph if such State pensation (as described in subsection (b)(1)) scribed) in connection with any regular com- law— paid to individuals by the State pursuant to pensation or any unemployment benefits de- ‘‘(A) uses a base period that includes the such agreement; and scribed in subsection (i)(3) for any period of most recently completed calendar quarter (ii) any additional administrative expenses unemployment ending before such date; and before the start of the benefit year for pur- incurred by the State by reason of such (B) shall in no event be payable for any poses of determining eligibility for unem- agreement (as determined by the Secretary). week beginning after the date specified in ployment compensation; or ‘‘(B) provides that, in the case of an indi- (B) TERMS OF PAYMENTS.—Sums payable to subsection (e)(3). any State by reason of such State’s having (h) DISREGARD OF ADDITIONAL COMPENSA- vidual who would not otherwise be eligible an agreement under this section shall be TION FOR PURPOSES OF MEDICAID AND for unemployment compensation under the payable, either in advance or by way of reim- SCHIP.—A State that enters into an agree- State law because of the use of a base period that does not include the most recently com- bursement (as determined by the Secretary), ment under this section shall disregard the pleted calendar quarter before the start of in such amounts as the Secretary estimates monthly equivalent of $25 per week for any the benefit year, eligibility shall be deter- the State will be entitled to receive under individual who receives additional com- mined using a base period that includes such this section for each calendar month, re- pensation under subsection (b)(1) in consid- calendar quarter. duced or increased, as the case may be, by ering the amount of income of the individual for any purposes under the Medicaid program ‘‘(3) The State law of a State meets the re- any amount by which the Secretary finds quirements of this paragraph if such State that his estimates for any prior calendar under title XIX of the Social Security Act and the State Children’s Health Insurance law includes provisions to carry out at least month were greater or less than the amounts 2 of the following subparagraphs: which should have been paid to the State. Program under title XXI of such Act. (i) DEFINITIONS.—For purposes of this sec- ‘‘(A) An individual shall not be denied reg- Such estimates may be made on the basis of tion— ular unemployment compensation under any such statistical, sampling, or other method (1) the terms ‘‘compensation’’, ‘‘regular State law provisions relating to availability as may be agreed upon by the Secretary and compensation’’, ‘‘benefit year’’, ‘‘State’’, for work, active search for work, or refusal the State agency of the State involved. ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ to accept work, solely because such indi- (2) CERTIFICATIONS.—The Secretary shall have the respective meanings given such vidual is seeking only part-time (and not from time to time certify to the Secretary of terms under section 205 of the Federal-State full-time) work, except that the State law the Treasury for payment to each State the Extended Unemployment Compensation Act provisions carrying out this subparagraph sums payable to such State under this sec- of 1970 (26 U.S.C. 3304 note); may exclude an individual if a majority of tion. (2) the term ‘‘emergency unemployment the weeks of work in such individual’s base (3) APPROPRIATION.—There are appro- compensation’’ means emergency unemploy- period do not include part-time work. priated from the general fund of the Treas- ment compensation under title IV of the ‘‘(B) An individual shall not be disqualified ury, without fiscal year limitation, such Supplemental Appropriations Act, 2008 (Pub- from regular unemployment compensation sums as may be necessary for purposes of lic Law 110–252; 122 Stat. 2353); and for separating from employment if that sepa- this subsection. (3) any reference to unemployment bene- ration is for any compelling family reason. (e) APPLICABILITY.— fits described in this paragraph shall be con- For purposes of this subparagraph, the term (1) IN GENERAL.—An agreement entered sidered to refer to— ‘compelling family reason’ means the fol- into under this section shall apply to weeks (A) extended compensation (as defined by lowing: of unemployment— section 205 of the Federal-State Extended ‘‘(i) Domestic violence, verified by such (A) beginning after the date on which such Unemployment Compensation Act of 1970); reasonable and confidential documentation agreement is entered into; and and as the State law may require, which causes (B) ending before January 1, 2010. (B) unemployment compensation (as de- the individual reasonably to believe that (2) TRANSITION RULE FOR INDIVIDUALS RE- fined by section 85(b) of the Internal Revenue such individual’s continued employment MAINING ENTITLED TO REGULAR COMPENSATION Code of 1986) provided under any program ad- would jeopardize the safety of the individual AS OF JANUARY 1, 2010.—In the case of any in- ministered by a State under an agreement or of any member of the individual’s imme- dividual who, as of the date specified in para- with the Secretary. diate family (as defined by the Secretary of graph (1)(B), has not yet exhausted all rights SEC. 2003. UNEMPLOYMENT COMPENSATION Labor). to regular compensation under the State law MODERNIZATION. ‘‘(ii) The illness or disability of a member of a State with respect to a benefit year that (a) IN GENERAL.—Section 903 of the Social of the individual’s immediate family (as de- began before such date, additional compensa- Security Act (42 U.S.C. 1103) is amended by fined by the Secretary of Labor). tion (as described in subsection (b)(1)) shall adding at the end the following: ‘‘(iii) The need for the individual to accom- continue to be payable to such individual for ‘‘Special Transfers for Modernization pany such individual’s spouse— any week beginning on or after such date for ‘‘(I) to a place from which it is impractical ‘‘(f)(1)(A) In addition to any other which the individual is otherwise eligible for for such individual to commute; and amounts, the Secretary of Labor shall pro- regular compensation with respect to such ‘‘(II) due to a change in location of the benefit year. vide for the making of unemployment com- pensation modernization incentive payments spouse’s employment. (3) TERMINATION.—Notwithstanding any (hereinafter ‘incentive payments’) to the ac- ‘‘(C) Weekly unemployment compensation other provision of this subsection, no addi- counts of the States in the Unemployment is payable under this subparagraph to any tional compensation (as described in sub- Trust Fund, by transfer from amounts re- individual who is unemployed (as determined section (b)(1)) shall be payable for any week served for that purpose in the Federal unem- under the State unemployment compensa- beginning after June 30, 2010. ployment account, in accordance with suc- tion law), has exhausted all rights to regular (f) FRAUD AND OVERPAYMENTS.—The provi- ceeding provisions of this subsection. unemployment compensation under the sions of section 4005 of the Supplemental Ap- ‘‘(B) The maximum incentive payment al- State law, and is enrolled and making satis- propriations Act, 2008 (Public Law 110–252; lowable under this subsection with respect to factory progress in a State-approved training 122 Stat. 2356) shall apply with respect to ad- any State shall, as determined by the Sec- program or in a job training program author- ditional compensation (as described in sub- retary of Labor, be equal to the amount ob- ized under the Workforce Investment Act of section (b)(1)) to the same extent and in the tained by multiplying $7,000,000,000 by the 1998. Such programs shall prepare individuals same manner as in the case of emergency un- same ratio as would apply under subsection who have been separated from a declining oc- employment compensation. (a)(2)(B) for purposes of determining such cupation, or who have been involuntarily (g) APPLICATION TO OTHER UNEMPLOYMENT State’s share of any excess amount (as de- and indefinitely separated from employment BENEFITS.— scribed in subsection (a)(1)) that would have as a result of a permanent reduction of oper- (1) IN GENERAL.—Each agreement under been subject to transfer to State accounts, ations at the individual’s place of employ- this section shall include provisions to pro- as of October 1, 2008, under the provisions of ment, for entry into a high-demand occupa- vide that the purposes of the preceding pro- subsection (a). tion. The amount of unemployment com- visions of this section shall be applied with ‘‘(C) Of the maximum incentive payment pensation payable under this subparagraph respect to unemployment benefits described determined under subparagraph (B) with re- to an individual for a week of unemployment in subsection (i)(3) to the same extent and in spect to a State— shall be equal to the individual’s average

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00088 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.047 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1191 weekly benefit amount (including depend- of a State under this subsection may be used ‘‘(10)(A) With respect to the period begin- ents’ allowances) for the most recent benefit by such State only in the payment of cash ning on the date of enactment of this para- year, and the total amount of unemployment benefits to individuals with respect to their graph and ending on December 31, 2010— compensation payable under this subpara- unemployment (including for dependents’ al- ‘‘(i) any interest payment otherwise due graph to any individual shall be equal to at lowances and for unemployment compensa- from a State under this subsection during least 26 times the individual’s average week- tion under paragraph (3)(C)), exclusive of ex- such period shall be deemed to have been ly benefit amount (including dependents’ al- penses of administration. made by the State; and lowances) for the most recent benefit year. ‘‘(B) A State may, subject to the same con- ‘‘(ii) no interest shall accrue on any ad- ‘‘(D) Dependents’ allowances are provided, ditions as set forth in subsection (c)(2) (ex- vance or advances made under section 1201 to in the case of any individual who is entitled cluding subparagraph (B) thereof, and deem- a State during such period. to receive regular unemployment compensa- ing the reference to ‘subsections (a) and (b)’ ‘‘(B) The provisions of subparagraph (A) tion and who has any dependents (as defined in subparagraph (D) thereof to include this shall have no effect on the requirement for by State law), in an amount equal to at least subsection), use any amount transferred to interest payments under this subsection $15 per dependent per week, subject to any the account of such State under this sub- after the period described in such subpara- aggregate limitation on such allowances section for the administration of its unem- graph or on the accrual of interest under this which the State law may establish (but ployment compensation law and public em- subsection after such period.’’. which aggregate limitation on the total al- ployment offices. Subtitle B—Assistance for Vulnerable lowance for dependents paid to an individual ‘‘(6) Out of any money in the Federal un- Individuals may not be less than $50 for each week of un- employment account not otherwise appro- SEC. 2101. EMERGENCY FUND FOR TANF PRO- employment or 50 percent of the individual’s priated, the Secretary of the Treasury shall GRAM. weekly benefit amount for the benefit year, reserve $7,000,000,000 for incentive payments (a) TEMPORARY FUND.— whichever is less). under this subsection. Any amount so re- (1) IN GENERAL.—Section 403 of the Social ‘‘(4)(A) Any State seeking an incentive served shall not be taken into account for Security Act (42 U.S.C. 603) is amended by payment under this subsection shall submit purposes of any determination under section adding at the end the following: an application therefor at such time, in such 902, 910, or 1203 of the amount in the Federal ‘‘(c) EMERGENCY FUND.— manner, and complete with such information unemployment account as of any given time. ‘‘(1) ESTABLISHMENT.—There is established as the Secretary of Labor may within 60 days Any amount so reserved for which the Sec- in the Treasury of the United States a fund after the date of the enactment of this sub- retary of the Treasury has not received a which shall be known as the ‘Emergency section prescribe (whether by regulation or certification under paragraph (4)(B) by the Contingency Fund for State Temporary As- otherwise), including information relating to deadline described in paragraph (4)(C)(iii) sistance for Needy Families Programs’ (in compliance with the requirements of para- shall, upon the close of fiscal year 2011, be- this subsection referred to as the ‘Emer- graph (2) or (3), as well as how the State in- come unrestricted as to use as part of the gency Fund’). tends to use the incentive payment to im- Federal unemployment account. ‘‘(2) DEPOSITS INTO FUND.— prove or strengthen the State’s unemploy- ‘‘(7) For purposes of this subsection, the ‘‘(A) IN GENERAL.—Out of any money in the ment compensation program. The Secretary terms ‘benefit year’, ‘base period’, and ‘week’ Treasury of the United States not otherwise of Labor shall, within 30 days after receiving have the respective meanings given such appropriated, there are appropriated for fis- a complete application, notify the State terms under section 205 of the Federal-State cal year 2009, $3,000,000,000 for payment to agency of the State of the Secretary’s find- Extended Unemployment Compensation Act the Emergency Fund. ings with respect to the requirements of of 1970 (26 U.S.C. 3304 note). ‘‘(B) AVAILABILITY AND USE OF FUNDS.—The paragraph (2) or (3) (or both). ‘‘Special Transfer in Fiscal Year 2009 for amounts appropriated to the Emergency ‘‘(B)(i) If the Secretary of Labor finds that Administration Fund under subparagraph (A) shall remain the State law provisions (disregarding any ‘‘(g)(1) In addition to any other amounts, available through fiscal year 2010 and shall State law provisions which are not then cur- the Secretary of the Treasury shall transfer be used to make grants to States in each of rently in effect as permanent law or which from the employment security administra- fiscal years 2009 and 2010 in accordance with are subject to discontinuation) meet the re- tion account to the account of each State in the requirements of paragraph (3). quirements of paragraph (2) or (3), as the the Unemployment Trust Fund, within 30 ‘‘(C) LIMITATION.—In no case may the Sec- case may be, the Secretary of Labor shall days after the date of the enactment of this retary make a grant from the Emergency thereupon make a certification to that effect subsection, the amount determined with re- Fund for a fiscal year after fiscal year 2010. to the Secretary of the Treasury, together spect to such State under paragraph (2). ‘‘(3) GRANTS.— with a certification as to the amount of the ‘‘(2) The amount to be transferred under ‘‘(A) GRANT RELATED TO CASELOAD IN- incentive payment to be transferred to the this subsection to a State account shall (as CREASES.— State account pursuant to that finding. The determined by the Secretary of Labor and ‘‘(i) IN GENERAL.—For each calendar quar- Secretary of the Treasury shall make the ap- certified by such Secretary to the Secretary ter in fiscal year 2009 or 2010, the Secretary propriate transfer within 7 days after receiv- of the Treasury) be equal to the amount ob- shall make a grant from the Emergency ing such certification. tained by multiplying $500,000,000 by the Fund to each State that— ‘‘(ii) For purposes of clause (i), State law same ratio as determined under subsection ‘‘(I) requests a grant under this subpara- provisions which are to take effect within 12 (f)(1)(B) with respect to such State. graph for the quarter; and months after the date of their certification ‘‘(3) Any amount transferred to the ac- ‘‘(II) meets the requirement of clause (ii) under this subparagraph shall be considered count of a State as a result of the enactment for the quarter. to be in effect as of the date of such certifi- of this subsection may be used by the State ‘‘(ii) CASELOAD INCREASE REQUIREMENT.—A cation. State meets the requirement of this clause ‘‘(C)(i) No certification of compliance with agency of such State only in the payment of expenses incurred by it for— for a quarter if the average monthly assist- the requirements of paragraph (2) or (3) may ance caseload of the State for the quarter ex- be made with respect to any State whose ‘‘(A) the administration of the provisions of its State law carrying out the purposes of ceeds the average monthly assistance case- State law is not otherwise eligible for cer- load of the State for the corresponding quar- tification under section 303 or approvable subsection (f)(2) or any subparagraph of sub- ter in the emergency fund base year of the under section 3304 of the Federal Unemploy- section (f)(3); State. ment Tax Act. ‘‘(B) improved outreach to individuals who ‘‘(ii) No certification of compliance with might be eligible for regular unemployment ‘‘(iii) AMOUNT OF GRANT.—Subject to para- the requirements of paragraph (3) may be compensation by virtue of any provisions of graph (5), the amount of the grant to be made with respect to any State whose State the State law which are described in sub- made to a State under this subparagraph for law is not in compliance with the require- paragraph (A); a quarter shall be 80 percent of the amount ments of paragraph (2). ‘‘(C) the improvement of unemployment (if any) by which the total expenditures of ‘‘(iii) No application under subparagraph benefit and unemployment tax operations, the State for basic assistance (as defined by (A) may be considered if submitted before including responding to increased demand the Secretary) in the quarter, whether under the date of the enactment of this subsection for unemployment compensation; and the State program funded under this part or or after the latest date necessary (as speci- ‘‘(D) staff-assisted reemployment services as qualified State expenditures, exceeds the fied by the Secretary of Labor) to ensure for unemployment compensation claim- total expenditures of the State for such as- that all incentive payments under this sub- ants.’’. sistance for the corresponding quarter in the section are made before October 1, 2010. In (b) REGULATIONS.—The Secretary of Labor emergency fund base year of the State. the case of a State in which the first day of may prescribe any regulations, operating in- ‘‘(B) GRANT RELATED TO INCREASED EXPEND- the first regularly scheduled session of the structions, or other guidance necessary to ITURES FOR NON-RECURRENT SHORT TERM BEN- State legislature beginning after the date of carry out the amendment made by sub- EFITS.— enactment of this subsection begins after De- section (a). ‘‘(i) IN GENERAL.—For each calendar quar- cember 31, 2010, the preceding sentence shall SEC. 2004. TEMPORARY ASSISTANCE FOR STATES ter in fiscal year 2009 or 2010, the Secretary be applied by substituting ‘October 1, 2011’ WITH ADVANCES. shall make a grant from the Emergency for ‘October 1, 2010’ . Section 1202(b) of the Social Security Act Fund to each State that— ‘‘(5)(A) Except as provided in subparagraph (42 U.S.C. 1322(b)) is amended by adding at ‘‘(I) requests a grant under this subpara- (B), any amount transferred to the account the end the following new paragraph: graph for the quarter; and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00089 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.047 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1192 CONGRESSIONAL RECORD — SENATE January 30, 2009 ‘‘(II) meets the requirement of clause (ii) whichever of fiscal year 2007 or 2008 is the fis- 455(a)(1) of the Social Security Act (42 U.S.C. for the quarter. cal year in which the amount described by 655(a)(1)) shall be applied without regard to ‘‘(ii) NON-RECURRENT SHORT TERM EXPENDI- the category with respect to the State is the the amendment made by section 7309(a) of TURE REQUIREMENT.—A State meets the re- lesser. the Deficit Reduction Act of 2005 (Public quirement of this clause for a quarter if the ‘‘(ii) CATEGORIES DESCRIBED.—The cat- Law 109–171, 120 Stat. 147). total expenditures of the State for non-re- egories described in this clause are the fol- TITLE III—HEALTH INSURANCE current short term benefits in the quarter, lowing: ASSISTANCE whether under the State program funded ‘‘(I) The average monthly assistance case- SEC. 3000. TABLE OF CONTENTS OF TITLE. under this part or as qualified State expendi- load of the State. The table of contents for this title is as fol- tures, exceeds the total such expenditures of ‘‘(II) The total expenditures of the State lows: the State for non-recurrent short term bene- for non-recurrent short term benefits, fits in the corresponding quarter in the whether under the State program funded TITLE III—HEALTH INSURANCE emergency fund base year of the State. under this part or as qualified State expendi- ASSISTANCE ‘‘(iii) AMOUNT OF GRANT.—Subject to para- tures. Sec. 3000. Table of contents of title. graph (5), the amount of the grant to be ‘‘(III) The total expenditures of the State Subtitle A—Premium Subsidies for COBRA made to a State under this subparagraph for for subsidized employment, whether under Continuation Coverage for Unemployed a quarter shall be an amount equal to 80 per- the State program funded under this part or Workers cent of the excess described in clause (ii). as qualified State expenditures. Sec. 3001. Premium assistance for COBRA ‘‘(C) GRANT RELATED TO INCREASED EXPEND- ‘‘(C) QUALIFIED STATE EXPENDITURES.—The benefits. ITURES FOR SUBSIDIZED EMPLOYMENT.— term ‘qualified State expenditures’ has the ‘‘(i) IN GENERAL.—For each calendar quar- meaning given the term in section Subtitle B—Transitional Medical Assistance ter in fiscal year 2009 or 2010, the Secretary 409(a)(7).’’. (TMA) shall make a grant from the Emergency (2) REPEAL.—Effective October 1, 2010, sub- Sec. 3101. Extension of transitional medical Fund to each State that— section (c) of section 403 of the Social Secu- assistance (TMA). ‘‘(I) requests a grant under this subpara- rity Act (42 U.S.C. 603) (as added by para- Subtitle C—Extension of the Qualified graph for the quarter; and graph (1)) is repealed. Individual (QI) Program ‘‘(II) meets the requirement of clause (ii) (b) TEMPORARY MODIFICATION OF CASELOAD for the quarter. Sec. 3201. Extension of the qualifying indi- REDUCTION CREDIT.—Section 407(b)(3)(A)(i) of vidual (QI) program. ‘‘(ii) SUBSIDIZED EMPLOYMENT EXPENDITURE such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended Subtitle D—Other Provisions REQUIREMENT.—A State meets the require- by inserting ‘‘(or if the immediately pre- ment of this clause for a quarter if the total ceding fiscal year is fiscal year 2008, 2009, or Sec. 3301. Premiums and cost sharing pro- expenditures of the State for subsidized em- 2010, then, at State option, during the emer- tections under Medicaid, eligi- ployment in the quarter, whether under the gency fund base year of the State with re- bility determinations under State program funded under this part or as spect to the average monthly assistance Medicaid and CHIP, and protec- qualified State expenditures, exceeds the caseload of the State (within the meaning of tion of certain Indian property total of such expenditures of the State in the section 403(c)(8)(B), except that, if a State from Medicaid estate recovery. corresponding quarter in the emergency fund elects such option for fiscal year 2008, the Sec. 3302. Rules applicable under Medicaid base year of the State. emergency fund base year of the State with and CHIP to managed care enti- ‘‘(iii) AMOUNT OF GRANT.—Subject to para- respect to such caseload shall be fiscal year ties with respect to Indian en- graph (5), the amount of the grant to be 2007))’’ before ‘‘under the State’’. rollees and Indian health care made to a State under this subparagraph for (c) DISREGARD FROM LIMITATION ON TOTAL providers and Indian managed a quarter shall be an amount equal to 80 per- PAYMENTS TO TERRITORIES.—Section care entities. cent of the excess described in clause (ii). 1108(a)(2) of the Social Security Act (42 Sec. 3303. Consultation on Medicaid, CHIP, ‘‘(4) AUTHORITY TO MAKE NECESSARY AD- U.S.C. 1308(a)(2)) is amended by inserting and other health care programs JUSTMENTS TO DATA AND COLLECT NEEDED ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. funded under the Social Secu- DATA.—In determining the size of the case- (d) EFFECTIVE DATE.—The amendments rity Act involving Indian load of a State and the expenditures of a made by this section shall take effect on the Health Programs and Urban In- State for basic assistance, non-recurrent date of the enactment of this Act. dian Organizations. short-term benefits, and subsidized employ- Sec. 3304. Application of prompt pay require- ment, during any period for which the State SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS. ments to nursing facilities. requests funds under this subsection, and Sec. 3305. Period of application; sunset. during the emergency fund base year of the (a) EXTENSION THROUGH FISCAL YEAR Subtitle A—Premium Subsidies for COBRA State, the Secretary may make appropriate 2010.—Section 7101(a) of the Deficit Reduc- Continuation Coverage for Unemployed adjustments to the data to ensure that the tion Act of 2005 (Public Law 109–171; 120 Stat. data reflect expenditures under the State 135), as amended by section 301(a) of the Workers program funded under this part and qualified Medicare Improvements for Patients and SEC. 3001. PREMIUM ASSISTANCE FOR COBRA State expenditures. The Secretary may de- Providers Act of 2008 (Public Law 110–275), is BENEFITS. velop a mechanism for collecting expendi- amended by striking ‘‘fiscal year 2009’’ and (a) TABLE OF CONTENTS OF SUBTITLE.—The ture data, including procedures which allow inserting ‘‘fiscal year 2010’’. table of contents of this subtitle is as fol- States to make reasonable estimates, and (b) CONFORMING AMENDMENT.—Section lows: may set deadlines for making revisions to 403(a)(3)(H)(ii) of the Social Security Act (42 Sec. 3001. Premium assistance for COBRA the data. U.S.C. 603(a)(3)(H)(ii)) is amended to read as benefits. ‘‘(5) LIMITATION.—The total amount pay- follows: (b) PREMIUM ASSISTANCE FOR COBRA CON- able to a single State under subsection (b) ‘‘(ii) subparagraph (G) shall be applied as if TINUATION COVERAGE FOR UNEMPLOYED WORK- and this subsection for a fiscal year shall not ‘fiscal year 2010’ were substituted for ‘fiscal ERS AND THEIR FAMILIES.— exceed 25 percent of the State family assist- year 2001’; and’’. (1) PROVISION OF PREMIUM ASSISTANCE.— ance grant. SEC. 2103. CLARIFICATION OF AUTHORITY OF (A) REDUCTION OF PREMIUMS PAYABLE.—In ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A STATES TO USE TANF FUNDS CAR- the case of any premium for a month of cov- State to which an amount is paid under this RIED OVER FROM PRIOR YEARS TO erage beginning after the date of the enact- PROVIDE TANF BENEFITS AND SERV- subsection may use the amount only as au- ICES. ment of the Act for COBRA continuation thorized by section 404. Section 404(e) of the Social Security Act coverage with respect to any assistance eli- ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec- (42 U.S.C. 604(e)) is amended to read as fol- gible individual, such individual shall be retary shall implement this subsection as lows: treated for purposes of any COBRA continu- quickly as reasonably possible, pursuant to ‘‘(e) AUTHORITY TO CARRY OVER CERTAIN ation provision as having paid the amount of appropriate guidance to States. AMOUNTS FOR BENEFITS OR SERVICES OR FOR such premium if such individual pays 35 per- ‘‘(8) DEFINITIONS.—In this subsection: FUTURE CONTINGENCIES.—A State or tribe cent of the amount of such premium (as de- ‘‘(A) AVERAGE MONTHLY ASSISTANCE CASE- may use a grant made to the State or tribe termined without regard to this subsection). LOAD DEFINED.—The term ‘average monthly under this part for any fiscal year to provide, (B) PLAN ENROLLMENT OPTION.— assistance caseload’ means, with respect to a without fiscal year limitation, any benefit or (i) IN GENERAL.—Notwithstanding the State and a quarter, the number of families service that may be provided under the State COBRA continuation provisions, an assist- receiving assistance during the quarter or tribal program funded under this part.’’. ance eligible individual may, not later than under the State program funded under this 90 days after the date of notice of the plan SEC. 2104. TEMPORARY REINSTATEMENT OF AU- part or as qualified State expenditures, sub- THORITY TO PROVIDE FEDERAL enrollment option described in this subpara- ject to adjustment under paragraph (4). MATCHING PAYMENTS FOR STATE graph, elect to enroll in coverage under a ‘‘(B) EMERGENCY FUND BASE YEAR.— SPENDING OF CHILD SUPPORT IN- plan offered by the employer involved, or the ‘‘(i) IN GENERAL.—The term ‘emergency CENTIVE PAYMENTS. employee organization involved (including, fund base year’ means, with respect to a During the period that begins on October 1, for this purpose, a joint board of trustees of State and a category described in clause (ii), 2008, and ends on December 31, 2010, section a multiemployer trust affiliated with one or

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00090 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.047 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1193 more multiemployer plans), that is different ance eligible individual’’ means any qualified ance eligible individual under this sub- than coverage under the plan in which such beneficiary if— section shall not be considered income or re- individual was enrolled at the time the (A) at any time during the period that be- sources in determining eligibility for, or the qualifying event occurred, and such coverage gins with September 1, 2008, and ends with amount of assistance or benefits provided shall be treated as COBRA continuation cov- December 31, 2009, such qualified beneficiary under, any other public benefit provided erage for purposes of the applicable COBRA is eligible for COBRA continuation coverage, under Federal law or the law of any State or continuation coverage provision. (B) such qualified beneficiary elects such political subdivision thereof. (ii) REQUIREMENTS.—An assistance eligible coverage, and (7) NOTICES TO INDIVIDUALS.— individual may elect to enroll in different (C) the qualifying event with respect to the (A) GENERAL NOTICE.— coverage as described in clause (i) only if— COBRA continuation coverage consists of (i) IN GENERAL.—In the case of notices pro- (I) the employer involved has made a de- the involuntary termination of the covered vided under section 606(4) of the Employee termination that such employer will permit employee’s employment and occurred during Retirement Income Security Act of 1974 (29 assistance eligible individuals to enroll in such period. U.S.C. 1166(4)), section 4980B(f)(6)(D) of the different coverage as provided for this sub- (4) EXTENSION OF ELECTION PERIOD AND EF- Internal Revenue Code of 1986, section 2206(4) paragraph; FECT ON COVERAGE.— of the Public Health Service Act (42 U.S.C. (II) the premium for such different cov- (A) IN GENERAL.—Notwithstanding section 300bb-6(4)), or section 8905a(f)(2)(A) of title 5, erage does not exceed the premium for cov- 605(a) of the Employee Retirement Income United States Code, with respect to individ- erage in which the individual was enrolled at Security Act of 1974, section 4980B(f)(5)(A) of uals who, during the period described in the time the qualifying event occurred; the Internal Revenue Code of 1986, section paragraph (3)(A), become entitled to elect (III) the different coverage in which the in- 2205(a) of the Public Health Service Act, and COBRA continuation coverage, such notices dividual elects to enroll is coverage that is section 8905a(c)(2) of title 5, United States shall include an additional notification to also offered to the active employees of the Code, in the case of an individual who is a the recipient of— employer at the time at which such election qualified beneficiary described in paragraph (I) the availability of premium reduction is made; and (3)(A) as of the date of the enactment of this with respect to such coverage under this sub- (IV) the different coverage is not— Act and has not made the election referred section; and (aa) coverage that provides only dental, vi- to in paragraph (3)(B) as of such date, such sion, counseling, or referral services (or a individual may elect the COBRA continu- (II) the option to enroll in different cov- combination of such services); ation coverage under the COBRA continu- erage if an employer that permits assistance (bb) a health flexible spending account or ation coverage provisions containing such eligible individuals to elect enrollment in health reimbursement arrangement; or sections during the 60-day period com- different coverage (as described in paragraph (cc) coverage that provides coverage for mencing with the date on which the notifica- (1)(B)). services or treatments furnished in an on- tion required under paragraph (7)(C) is pro- (ii) ALTERNATIVE NOTICE.—In the case of site medical facility maintained by the em- vided to such individual. COBRA continuation coverage to which the ployer and that consists primarily of first- (B) COMMENCEMENT OF COVERAGE; NO REACH- notice provision under such sections does not aid services, prevention and wellness care, or BACK.—Any COBRA continuation coverage apply, the Secretary of Labor, in consulta- similar care (or a combination of such care). elected by a qualified beneficiary during an tion with the Secretary of the Treasury and (C) PREMIUM REIMBURSEMENT.—For provi- extended election period under subparagraph the Secretary of Health and Human Services, sions providing the balance of such premium, (A)— shall, in coordination with administrators of see section 6432 of the Internal Revenue Code (i) shall commence on the date of the en- the group health plans (or other entities) of 1986, as added by paragraph (12). actment of this Act, and that provide or administer the COBRA con- (2) LIMITATION OF PERIOD OF PREMIUM AS- (ii) shall not extend beyond the period of tinuation coverage involved, provide rules SISTANCE.— COBRA continuation coverage that would requiring the provision of such notice. (A) IN GENERAL.—Paragraph (1)(A) shall have been required under the applicable (iii) FORM.—The requirement of the addi- not apply with respect to any assistance eli- COBRA continuation coverage provision if tional notification under this subparagraph gible individual for months of coverage be- the coverage had been elected as required may be met by amendment of existing notice ginning on or after the earlier of— under such provision. forms or by inclusion of a separate document (i) the first date that such individual is eli- (C) PREEXISTING CONDITIONS.—With respect with the notice otherwise required. gible for coverage under any other group to a qualified beneficiary who elects COBRA (B) SPECIFIC REQUIREMENTS.—Each addi- health plan (other than coverage consisting continuation coverage pursuant to subpara- tional notification under subparagraph (A) of only dental, vision, counseling, or referral graph (A), the period— shall include— services (or a combination thereof), coverage (i) beginning on the date of the qualifying (i) the forms necessary for establishing eli- under a health reimbursement arrangement event, and gibility for premium reduction under this or a health flexible spending arrangement, or (ii) ending with the day before the date of subsection, coverage of treatment that is furnished in an the enactment of this Act, (ii) the name, address, and telephone num- on-site medical facility maintained by the shall be disregarded for purposes of deter- ber necessary to contact the plan adminis- employer and that consists primarily of mining the 63-day periods referred to in sec- trator and any other person maintaining rel- first-aid services, prevention and wellness tion 701)(2) of the Employee Retirement In- evant information in connection with such care, or similar care (or a combination come Security Act of 1974, section 9801(c)(2) premium reduction, thereof)) or is eligible for benefits under title of the Internal Revenue Code of 1986, and sec- (iii) a description of the extended election XVIII of the Social Security Act; or tion 2701(c)(2) of the Public Health Service period provided for in paragraph (4)(A), (ii) the earliest of— Act. (iv) a description of the obligation of the (I) the date which is 9 months after the (5) EXPEDITED REVIEW OF DENIALS OF PRE- qualified beneficiary under paragraph (2)(C) first day of first month that paragraph (1)(A) MIUM ASSISTANCE.—In any case in which an to notify the plan providing continuation applies with respect to such individual, individual requests treatment as an assist- coverage of eligibility for subsequent cov- (II) the date following the expiration of the ance eligible individual and is denied such erage under another group health plan or eli- maximum period of continuation coverage treatment by the group health plan by rea- gibility for benefits under title XVIII of the required under the applicable COBRA con- son of such individual’s ineligibility for Social Security Act and the penalty provided tinuation coverage provision, or COBRA continuation coverage, the Sec- for failure to so notify the plan, (III) the date following the expiration of retary of Labor (or the Secretary of Health (v) a description, displayed in a prominent the period of continuation coverage allowed and Human services in connection with manner, of the qualified beneficiary’s right under paragraph (4)(B)(ii). COBRA continuation coverage which is pro- to a reduced premium and any conditions on (B) TIMING OF ELIGIBILITY FOR ADDITIONAL vided other than pursuant to part 6 of sub- entitlement to the reduced premium; and COVERAGE.—For purposes of subparagraph title B of title I of the Employee Retirement (vi) a description of the option of the quali- (A)(i), an individual shall not be treated as Income Security Act of 1974), in consultation fied beneficiary to enroll in different cov- eligible for coverage under a group health with the Secretary of the Treasury, shall erage if the employer permits such bene- plan before the first date on which such indi- provide for expedited review of such denial. ficiary to elect to enroll in such different vidual could be covered under such plan. An individual shall be entitled to such re- coverage under paragraph (1)(B). (C) NOTIFICATION REQUIREMENT.—An assist- view upon application to such Secretary in (C) NOTICE RELATING TO RETROACTIVE COV- ance eligible individual shall notify in writ- such form and manner as shall be provided ERAGE.—In the case of an individual de- ing the group health plan with respect to by such Secretary. Such Secretary shall scribed in paragraph (3)(A) who has elected which paragraph (1)(A) applies if such para- make a determination regarding such indi- COBRA continuation coverage as of the date graph ceases to apply by reason of subpara- vidual’s eligibility within 10 business days of enactment of this Act or an individual de- graph (A)(i). Such notice shall be provided to after receipt of such individual’s application scribed in paragraph (4)(A), the adminis- the group health plan in such time and man- for review under this paragraph. trator of the group health plan (or other per- ner as may be specified by the Secretary of (6) DISREGARD OF SUBSIDIES FOR PURPOSES son) involved shall provide (within 60 days Labor. OF FEDERAL AND STATE PROGRAMS.—Notwith- after the date of enactment of this Act) for (3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For standing any other provision of law, any pre- the additional notification required to be purposes of this section, the term ‘‘assist- mium reduction with respect to an assist- provided under subparagraph (A).

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(D) MODEL NOTICES.—Not later than 30 days (ii) the total amount of expenditures in- mitted at the same time as deposits of taxes after the date of enactment of this Act, the curred (with administrative expenditures imposed by chapters 21, 22, and 24 or at such Secretary of the Labor, in consultation with noted separately) in connection with such time as is specified by the Secretary. the Secretary of the Treasury and the Sec- assistance as of the date of the report. ‘‘(f) REGULATIONS.—The Secretary may retary of Health and Human Services, shall (B) FINAL REPORT.—As soon as practicable issue such regulations or other guidance as prescribe models for the additional notifica- after the last period of COBRA continuation may be necessary or appropriate to carry out tion required under this paragraph. coverage for which premium reduction is this section, including the requirement to re- (8) SAFEGUARDS.—The Secretary of the provided under this section, the Secretary of port information or the establishment of Treasury shall provide such rules, proce- the Treasury shall submit a final report to other methods for verifying the correct dures, regulations, and other guidance as each Committee referred to in subparagraph amounts of payments and credits under this may be necessary and appropriate to prevent (A) that includes— section, and the application of this section fraud and abuse under this subsection. (i) the number of individuals provided pre- to group health plans which are multiem- (9) OUTREACH.—The Secretary of Labor, in mium reduction under this section; ployer plans.’’. consultation with the Secretary of the (ii) the average dollar amount (monthly (B) SOCIAL SECURITY TRUST FUNDS HELD Treasury and the Secretary of Health and and annually) of premium reductions pro- HARMLESS.—In determining any amount Human Services, shall provide outreach con- vided to such individuals; and transferred or appropriated to any fund sisting of public education and enrollment (iii) the total amount of expenditures in- under the Social Security Act, section 6432 of assistance relating to premium reduction curred (with administrative expenditures the Internal Revenue Code of 1986 shall not provided under this subsection. Such out- noted separately) in connection with pre- be taken into account. reach shall target employers, group health mium reduction under this section. (C) CLERICAL AMENDMENT.—The table of plan administrators, public assistance pro- (12) COBRA PREMIUM ASSISTANCE.— sections for subchapter B of chapter 65 of the grams, States, insurers, and other entities as (A) IN GENERAL.—Subchapter B of chapter Internal Revenue Code of 1986 is amended by determined appropriate by such Secretaries. 65 of the Internal Revenue Code of 1986 is adding at the end the following new item: Such outreach shall include an initial focus amended by adding at the end the following ‘‘Sec. 6432. COBRA premium assistance.’’. on those individuals electing continuation new section: (D) EFFECTIVE DATE.—The amendments coverage who are referred to in paragraph ‘‘SEC. 6432. COBRA PREMIUM ASSISTANCE. made by this paragraph shall apply to pre- (7)(C). Information on such premium reduc- miums to which subsection (a)(1)(A) applies. ‘‘(a) IN GENERAL.—The person to whom pre- tion, including enrollment, shall also be (E) SPECIAL RULE.— miums are payable under COBRA continu- made available on website of the Depart- (i) IN GENERAL.—In the case of an assist- ation coverage shall be reimbursed for the ments of Labor, Treasury, and Health and ance eligible individual who pays the full amount of premiums not paid by plan bene- Human Services. premium amount required for COBRA con- ficiaries by reason of section 3001(b) of the (10) DEFINITIONS.—For purposes of this sub- tinuation coverage for any month during the American Recovery and Reinvestment Act of section— 60-day period beginning on the first day of 2009. Such amount shall be treated as a cred- (A) ADMINISTRATOR.—The term ‘‘adminis- the first month after the date of enactment it against the requirement of such person to trator’’ has the meaning given such term in of this Act, the person to whom such pay- make deposits of payroll taxes and the liabil- section 3(16) of the Employee Retirement In- ment is made shall— ity of such person for payroll taxes. To the come Security Act of 1974 (I) make a reimbursement payment to such extent that such amount exceeds the amount (B) COBRA CONTINUATION COVERAGE.—The individual for the amount of such premium of such taxes, the Secretary shall pay to term ‘‘COBRA continuation coverage’’ paid in excess of the amount required to be such person the amount of such excess. No means continuation coverage provided pur- paid under subsection (b)(1)(A); or payment may be made under this subsection suant to part 6 of subtitle B of title I of the (II) provide credit to the individual for to a person with respect to any assistance el- Employee Retirement Income Security Act such amount in a manner that reduces one or igible individual until after such person has of 1974 (other than under section 609), title more subsequent premium payments that received the reduced premium from such in- XXII of the Public Health Service Act, sec- the individual is required to pay under such dividual required under section 3001(a)(1)(A) tion 4980B of the Internal Revenue Code of subsection for the coverage involved. of such Act. 1986 (other than subsection (f)(1) of such sec- (ii) REIMBURSING EMPLOYER.—A person to ‘‘(b) PAYROLL TAXES.—For purposes of this tion insofar as it relates to pediatric vac- which clause (i) applies shall be reimbursed section, the term ‘payroll taxes’ means— cines), or section 8905a of title 5, United as provided for in section 6432 of the Internal ‘‘(1) amounts required to be deducted and States Code, or under a State program that Revenue Code of 1986 for any payment made, withheld for the payroll period under section provides continuation coverage comparable or credit provided, to the employee under 3401 (relating to wage withholding), to such continuation coverage. Such term such clause. does not include coverage under a health ‘‘(2) amounts required to be deducted for (iii) PAYMENT OR CREDITS.—Unless it is rea- flexible spending arrangement. the payroll period under section 3102 (relat- sonable to believe that the credit for the ex- (C) COBRA CONTINUATION PROVISION.—The ing to FICA employee taxes), and cess payment in clause (i)(II) will be used by term ‘‘COBRA continuation provision’’ ‘‘(3) amounts of the taxes imposed for the the assistance eligible individual within 180 means the provisions of law described in sub- payroll period under section 3111 (relating to days of the date on which the person receives paragraph (B). FICA employer taxes). from the individual the payment of the full (D) COVERED EMPLOYEE.—The term ‘‘cov- ‘‘(c) TREATMENT OF CREDIT.—Except as oth- premium amount, a person to which clause ered employee’’ has the meaning given such erwise provided by the Secretary, the credit (i) applies shall make the payment required term in section 607(2) of the Employee Re- described in subsection (a) shall be applied as under such clause to the individual within 60 tirement Income Security Act of 1974. though the employer had paid to the Sec- days of such payment of the full premium (E) QUALIFIED BENEFICIARY.—The term retary, on the day that the qualified bene- amount. If, as of any day within the 180-day ‘‘qualified beneficiary’’ has the meaning ficiary’s premium payment is received, an period, it is no longer reasonable to believe given such term in section 607(3) of the Em- amount equal to such credit. that the credit will be used during that pe- ployee Retirement Income Security Act of ‘‘(d) TREATMENT OF PAYMENT.—For pur- riod, payment equal to the remainder of the 1974. poses of section 1324(b)(2) of title 31, United credit outstanding shall be made to the indi- (F) GROUP HEALTH PLAN.—The term ‘‘group States Code, any payment under this sub- vidual within 60 days of such day. health plan’’ has the meaning given such section shall be treated in the same manner (13) PENALTY FOR FAILURE TO NOTIFY term in section 607(1) of the Employee Re- as a refund of the credit under section 35. HEALTH PLAN OF CESSATION OF ELIGIBILITY tirement Income Security Act of 1974. ‘‘(e) REPORTING.— FOR PREMIUM ASSISTANCE.— (G) STATE.—The term ‘‘State’’ includes the ‘‘(1) IN GENERAL.—Each person entitled to (A) IN GENERAL.—Part I of subchapter B of District of Columbia, the Commonwealth of reimbursement under subsection (a) for any chapter 68 of the Internal Revenue Code of Puerto Rico, the Virgin Islands, Guam, period shall submit such reports as the Sec- 1986 is amended by adding at the end the fol- American Samoa, and the Commonwealth of retary may require, including— lowing new section: the Northern Mariana Islands. ‘‘(A) an attestation of involuntary termi- ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY (11) REPORTS.— nation of employment for each covered em- HEALTH PLAN OF CESSATION OF (A) INTERIM REPORT.—The Secretary of the ployee on the basis of whose termination en- ELIGIBILITY FOR COBRA PREMIUM Treasury shall submit an interim report to titlement to reimbursement is claimed under ASSISTANCE. the Committee on Education and Labor, the subsection (a), and ‘‘(a) IN GENERAL.—Any person required to Committee on Ways and Means, and the ‘‘(B) a report of the amount of payroll notify a group health plan under section Committee on Energy and Commerce of the taxes offset under subsection (a) for the re- 3001(a)(2)(C) of the American Recovery and House of Representatives and the Committee porting period and the estimated offsets of Reinvestment Act of 2009 who fails to make on Health, Education, Labor, and Pensions such taxes for the subsequent reporting pe- such a notification at such time and in such and the Committee on Finance of the Senate riod in connection with reimbursements manner as the Secretary of Labor may re- regarding the premium reduction provided under subsection (a). quire shall pay a penalty of 110 percent of under this subsection that includes— ‘‘(2) TIMING OF REPORTS RELATING TO the premium reduction provided under such (i) the number of individuals provided such AMOUNT OF PAYROLL TAXES.—Reports re- section after termination of eligibility under assistance as of the date of the report; and quired under paragraph (1)(B) shall be sub- such subsection.

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‘‘(b) REASONABLE CAUSE EXCEPTION.—No period (or 12 months). In the case of such an (2) in paragraph (3), in the matter pre- penalty shall be imposed under subsection election, subsection (b) shall not apply.’’; ceding subparagraph (A), by striking ‘‘or (a) with respect to any failure if it is shown and (L)’’ and inserting ‘‘(L), or (N)’’. that such failure is due to reasonable cause (3) in subsection (b)(1), by inserting ‘‘but Subtitle D—Other Provisions and not to willful neglect.’’. subject to subsection (a)(5)’’ after ‘‘Notwith- SEC. 3301. PREMIUMS AND COST SHARING PRO- (B) CLERICAL AMENDMENT.—The table of standing any other provision of this title’’. TECTIONS UNDER MEDICAID, ELIGI- sections of part I of subchapter B of chapter (c) REMOVAL OF REQUIREMENT FOR PRE- BILITY DETERMINATIONS UNDER 68 of such Code is amended by adding at the VIOUS RECEIPT OF MEDICAL ASSISTANCE.—Sec- MEDICAID AND CHIP, AND PROTEC- end the following new item: tion 1925(a)(1) of such Act (42 U.S.C. 1396r– TION OF CERTAIN INDIAN PROP- 6(a)(1)), as amended by subsection (b)(1), is ERTY FROM MEDICAID ESTATE RE- ‘‘Sec. 6720C. Penalty for failure to notify further amended— COVERY. health plan of cessation of eli- (1) by inserting ‘‘subparagraph (B) and’’ be- (a) PREMIUMS AND COST SHARING PROTEC- gibility for COBRA premium fore ‘‘paragraph (5)’’; TION UNDER MEDICAID.— assistance.’’. (2) by redesignating the matter after ‘‘RE- (1) IN GENERAL.—Section 1916 of the Social (C) EFFECTIVE DATE.—The amendments QUIREMENT.—’’ as a subparagraph (A) with Security Act (42 U.S.C. 1396o) is amended— made by this paragraph shall apply to fail- the heading ‘‘IN GENERAL.—’’ and with the (A) in subsection (a), in the matter pre- ures occurring after the date of the enact- same indentation as subparagraph (B) (as ceding paragraph (1), by striking ‘‘and (i)’’ ment of this Act. added by paragraph (3)); and and inserting ‘‘, (i), and (j)’’; and (14) COORDINATION WITH HCTC.— (3) by adding at the end the following: (B) by adding at the end the following new (A) IN GENERAL.—Subsection (g) of section ‘‘(B) STATE OPTION TO WAIVE REQUIREMENT subsection: 35 of the Internal Revenue Code of 1986 is FOR 3 MONTHS BEFORE RECEIPT OF MEDICAL AS- ‘‘(j) NO PREMIUMS OR COST SHARING FOR IN- amended by redesignating paragraph (9) as SISTANCE.—A State may, at its option, elect DIANS FURNISHED ITEMS OR SERVICES DI- paragraph (10) and inserting after paragraph also to apply subparagraph (A) in the case of RECTLY BY INDIAN HEALTH PROGRAMS OR (8) the following new paragraph: a family that was receiving such aid for THROUGH REFERRAL UNDER CONTRACT ‘‘(9) COBRA PREMIUM ASSISTANCE.—In the fewer than three months or that had applied HEALTH SERVICES.— case of an assistance eligible individual who for and was eligible for such aid for fewer ‘‘(1) NO COST SHARING FOR ITEMS OR SERV- receives premium reduction for COBRA con- than 3 months during the 6 immediately pre- ICES FURNISHED TO INDIANS THROUGH INDIAN tinuation coverage under section 3001(a) of ceding months described in such subpara- HEALTH PROGRAMS.— the American Recovery and Reinvestment graph.’’. ‘‘(A) IN GENERAL.—No enrollment fee, pre- Act of 2009 for any month during the taxable (d) CMS REPORT ON ENROLLMENT AND PAR- mium, or similar charge, and no deduction, year, such individual shall not be treated as TICIPATION RATES UNDER TMA.—Section 1925 copayment, cost sharing, or similar charge an eligible individual, a certified individual, of such Act (42 U.S.C. 1396r–6), as amended by shall be imposed against an Indian who is or a qualifying family member for purposes this section, is further amended by adding at furnished an item or service directly by the of this section or section 7527 with respect to the end the following new subsection: Indian Health Service, an Indian Tribe, Trib- such month.’’. ‘‘(g) COLLECTION AND REPORTING OF PAR- al Organization, or Urban Indian Organiza- (B) EFFECTIVE DATE.—The amendment TICIPATION INFORMATION.— tion or through referral under contract made by subparagraph (A) shall apply to tax- ‘‘(1) COLLECTION OF INFORMATION FROM health services for which payment may be able years ending after the date of the enact- STATES.—Each State shall collect and submit made under this title. ment of this Act. to the Secretary (and make publicly avail- ‘‘(B) NO REDUCTION IN AMOUNT OF PAYMENT (15) EXCLUSION OF COBRA PREMIUM ASSIST- able), in a format specified by the Secretary, TO INDIAN HEALTH PROVIDERS.—Payment due ANCE FROM GROSS INCOME.— information on average monthly enrollment under this title to the Indian Health Service, (A) IN GENERAL.—Part III of subchapter B and average monthly participation rates for an Indian Tribe, Tribal Organization, or of chapter 1 of the Internal Revenue Code of adults and children under this section and of Urban Indian Organization, or a health care 1986 is amended by inserting after section the number and percentage of children who provider through referral under contract 139B the following new section: become ineligible for medical assistance health services for the furnishing of an item ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. under this section whose medical assistance or service to an Indian who is eligible for as- ‘‘In the case of an assistance eligible indi- is continued under another eligibility cat- sistance under such title, may not be re- vidual (as defined in section 3001 of the egory or who are enrolled under the State’s duced by the amount of any enrollment fee, American Recovery and Reinvestment Act of child health plan under title XXI. Such in- premium, or similar charge, or any deduc- 2009), gross income does not include any pre- formation shall be submitted at the same tion, copayment, cost sharing, or similar mium reduction provided under subsection time and frequency in which other enroll- charge that would be due from the Indian (a) of such section.’’. ment information under this title is sub- but for the operation of subparagraph (A). (B) CLERICAL AMENDMENT.—The table of mitted to the Secretary. ‘‘(2) RULE OF CONSTRUCTION.—Nothing in sections for part III of subchapter B of chap- ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using this subsection shall be construed as re- ter 1 of such Code is amended by inserting the information submitted under paragraph stricting the application of any other limita- after the item relating to section 139B the (1), the Secretary shall submit to Congress tions on the imposition of premiums or cost following new item: annual reports concerning enrollment and sharing that may apply to an individual re- ‘‘Sec. 139C. COBRA premium assistance.’’. participation rates described in such para- ceiving medical assistance under this title (C) EFFECTIVE DATE.—The amendments graph.’’. who is an Indian.’’. made by this paragraph shall apply to tax- (e) EFFECTIVE DATE.—The amendments (2) CONFORMING AMENDMENT.—Section able years ending after the date of the enact- made by subsections (b) through (d) shall 1916A(b)(3) of such Act (42 U.S.C. 1396o– take effect on July 1, 2009. ment of this Act. 1(b)(3)) is amended— Subtitle C—Extension of the Qualified (A) in subparagraph (A), by adding at the Subtitle B—Transitional Medical Assistance Individual (QI) Program end the following new clause: (TMA) SEC. 3201. EXTENSION OF THE QUALIFYING INDI- ‘‘(vi) An Indian who is furnished an item or SEC. 3101. EXTENSION OF TRANSITIONAL MED- VIDUAL (QI) PROGRAM. service directly by the Indian Health Serv- ICAL ASSISTANCE (TMA). (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of ice, an Indian Tribe, Tribal Organization or (a) 18-MONTH EXTENSION.— the Social Security Act (42 U.S.C. Urban Indian Organization or through refer- (1) IN GENERAL.—Sections 1902(e)(1)(B) and 1396a(a)(10)(E)(iv)) is amended by striking ral under contract health services.’’; and 1925(f) of the Social Security Act (42 U.S.C. ‘‘December 2009’’ and inserting ‘‘December (B) in subparagraph (B), by adding at the 1396a(e)(1)(B), 1396r–6(f)) are each amended by 2010’’. end the following new clause: striking ‘‘September 30, 2003’’ and inserting (b) EXTENDING TOTAL AMOUNT AVAILABLE ‘‘(ix) Items and services furnished to an In- ‘‘December 31, 2010’’. FOR ALLOCATION.—Section 1933(g) of such Act dian directly by the Indian Health Service, (2) EFFECTIVE DATE.—The amendments (42 U.S.C. 1396u–3(g)) is amended— an Indian Tribe, Tribal Organization or made by this subsection shall take effect on (1) in paragraph (2)— Urban Indian Organization or through refer- July 1, 2009. (A) by striking ‘‘and’’ at the end of sub- ral under contract health services.’’. (b) STATE OPTION OF INITIAL 12-MONTH ELI- paragraph (K); (b) TREATMENT OF CERTAIN PROPERTY FROM GIBILITY.—Section 1925 of the Social Security (B) in subparagraph (L), by striking the pe- RESOURCES FOR MEDICAID AND CHIP ELIGI- Act (42 U.S.C. 1396r–6) is amended— riod at the end and inserting a semicolon; BILITY.— (1) in subsection (a)(1), by inserting ‘‘but and (1) MEDICAID.—Section 1902 of the Social subject to paragraph (5)’’ after ‘‘Notwith- (C) by adding at the end the following new Security Act (42 U.S.C. 1396a) is amended by standing any other provision of this title’’; subparagraphs: adding at the end the following new sub- (2) by adding at the end of subsection (a) ‘‘(M) for the period that begins on January section: the following: 1, 2010, and ends on September 30, 2010, the ‘‘(dd) Notwithstanding any other require- ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY total allocation amount is $412,500,000; and ment of this title or any other provision of PERIOD.—A State may elect to treat any ref- ‘‘(N) for the period that begins on October Federal or State law, a State shall disregard erence in this subsection to a 6-month period 1, 2010, and ends on December 31, 2010, the the following property from resources for (or 6 months) as a reference to a 12-month total allocation amount is $150,000,000.’’; and purposes of determining the eligibility of an

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00093 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.048 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1196 CONGRESSIONAL RECORD — SENATE January 30, 2009 individual who is an Indian for medical as- ‘‘(B) has an Indian health care provider health center is or is not a participating pro- sistance under this title: that is participating as a primary care pro- vider with the entity). ‘‘(1) Property, including real property and vider within the network of the entity, ‘‘(ii) PAYMENT RATE FOR SERVICES PROVIDED improvements, that is held in trust, subject insofar as the Indian is otherwise eligible to BY CERTAIN INDIAN HEALTH CARE PROVIDERS.— to Federal restrictions, or otherwise under receive services from such Indian health care If the amount paid by a managed care entity the supervision of the Secretary of the Inte- provider and the Indian health care provider to an Indian health care provider that is not rior, located on a reservation, including any has the capacity to provide primary care a federally-qualified health center for serv- federally recognized Indian Tribe’s reserva- services to such Indian, the contract with ices provided by the provider to an Indian tion, pueblo, or colony, including former res- the entity under section 1903(m) or under enrollee with the managed care entity is less ervations in Oklahoma, Alaska Native re- section 1905(t)(3) shall require, as a condition than the rate that applies to the provision of gions established by the Alaska Native of receiving payment under such contract, such services by the provider under the State Claims Settlement Act, and Indian allot- that the Indian shall be allowed to choose plan, the plan shall provide for payment to ments on or near a reservation as designated such Indian health care provider as the Indi- the Indian health care provider, whether the and approved by the Bureau of Indian Affairs an’s primary care provider under the entity. provider is a participating or nonpartici- of the Department of the Interior. ‘‘(2) ASSURANCE OF PAYMENT TO INDIAN pating provider with respect to the entity, of ‘‘(2) For any federally recognized Tribe not HEALTH CARE PROVIDERS FOR PROVISION OF the difference between such applicable rate described in paragraph (1), property located COVERED SERVICES.—Each contract with a and the amount paid by the managed care within the most recent boundaries of a prior managed care entity under section 1903(m) or entity to the provider for such services. Federal reservation. under section 1905(t)(3) shall require any ‘‘(D) CONSTRUCTION.—Nothing in this para- ‘‘(3) Ownership interests in rents, leases, such entity, as a condition of receiving pay- graph shall be construed as waiving the ap- royalties, or usage rights related to natural ment under such contract, to satisfy the fol- plication of section 1902(a)(30)(A) (relating to resources (including extraction of natural re- lowing requirements: application of standards to assure that pay- sources or harvesting of timber, other plants ‘‘(A) DEMONSTRATION OF ACCESS TO INDIAN ments are consistent with efficiency, econ- and plant products, animals, fish, and shell- HEALTH CARE PROVIDERS AND APPLICATION OF omy, and quality of care). fish) resulting from the exercise of federally ALTERNATIVE PAYMENT ARRANGEMENTS.—Sub- ‘‘(3) SPECIAL RULE FOR ENROLLMENT FOR IN- protected rights. ject to subparagraph (C), to— DIAN MANAGED CARE ENTITIES.—Regarding the ‘‘(4) Ownership interests in or usage rights ‘‘(i) demonstrate that the number of Indian application of a Medicaid managed care pro- to items not covered by paragraphs (1) health care providers that are participating gram to Indian Medicaid managed care enti- through (3) that have unique religious, spir- providers with respect to such entity are suf- ties, an Indian Medicaid managed care entity itual, traditional, or cultural significance or ficient to ensure timely access to covered may restrict enrollment under such program rights that support subsistence or a tradi- Medicaid managed care services for those In- to Indians and to members of specific Tribes tional lifestyle according to applicable tribal dian enrollees who are eligible to receive in the same manner as Indian Health Pro- law or custom.’’. services from such providers; and grams may restrict the delivery of services (2) APPLICATION TO CHIP.—Section 2107(e)(1) ‘‘(ii) agree to pay Indian health care pro- to such Indians and tribal members. of such Act (42 U.S.C. 1397gg(e)(1)) is amend- viders, whether such providers are partici- ‘‘(4) DEFINITIONS.—For purposes of this sub- ed— pating or nonparticipating providers with re- section: (A) by redesignating subparagraphs (B) spect to the entity, for covered Medicaid ‘‘(A) INDIAN HEALTH CARE PROVIDER.—The through (E), as subparagraphs (C) through managed care services provided to those In- term ‘Indian health care provider’ means an (F), respectively; and dian enrollees who are eligible to receive Indian Health Program or an Urban Indian (B) by inserting after subparagraph (A), services from such providers at a rate equal Organization. the following new subparagraph: to the rate negotiated between such entity ‘‘(B) INDIAN MEDICAID MANAGED CARE ENTI- ‘‘(B) Section 1902(dd) (relating to disregard and the provider involved or, if such a rate TY.—The term ‘Indian Medicaid managed of certain property for purposes of making has not been negotiated, at a rate that is not care entity’ means a managed care entity eligibility determinations).’’. less than the level and amount of payment that is controlled (within the meaning of the (c) CONTINUATION OF CURRENT LAW PROTEC- which the entity would make for the services last sentence of section 1903(m)(1)(C)) by the TIONS OF CERTAIN INDIAN PROPERTY FROM if the services were furnished by a partici- Indian Health Service, a Tribe, Tribal Orga- MEDICAID ESTATE RECOVERY.—Section pating provider which is not an Indian nization, or Urban Indian Organization, or a 1917(b)(3) of the Social Security Act (42 health care provider. consortium, which may be composed of 1 or U.S.C. 1396p(b)(3)) is amended— ‘‘(B) PROMPT PAYMENT.—To agree to make more Tribes, Tribal Organizations, or Urban (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and prompt payment (consistent with rule for Indian Organizations, and which also may in- (2) by adding at the end the following new prompt payment of providers under section clude the Service. subparagraph: 1932(f)) to Indian health care providers that ‘‘(C) NON-INDIAN MEDICAID MANAGED CARE ‘‘(B) The standards specified by the Sec- are participating providers with respect to ENTITY.—The term ‘non-Indian Medicaid retary under subparagraph (A) shall require such entity or, in the case of an entity to managed care entity’ means a managed care that the procedures established by the State which subparagraph (A)(ii) or (C) applies, entity that is not an Indian Medicaid man- agency under subparagraph (A) exempt in- that the entity is required to pay in accord- aged care entity. come, resources, and property that are ex- ance with that subparagraph. ‘‘(D) COVERED MEDICAID MANAGED CARE empt from the application of this subsection ‘‘(C) APPLICATION OF SPECIAL PAYMENT RE- SERVICES.—The term ‘covered Medicaid man- as of April 1, 2003, under manual instructions QUIREMENTS FOR FEDERALLY-QUALIFIED aged care services’ means, with respect to an issued to carry out this subsection (as in ef- HEALTH CENTERS AND FOR SERVICES PROVIDED individual enrolled with a managed care en- fect on such date) because of the Federal re- BY CERTAIN INDIAN HEALTH CARE PROVIDERS.— tity, items and services for which benefits sponsibility for Indian Tribes and Alaska Na- ‘‘(i) FEDERALLY-QUALIFIED HEALTH CEN- are available with respect to the individual tive Villages. Nothing in this subparagraph TERS.— under the contract between the entity and shall be construed as preventing the Sec- ‘‘(I) MANAGED CARE ENTITY PAYMENT RE- the State involved. retary from providing additional estate re- QUIREMENT.—To agree to pay any Indian ‘‘(E) MEDICAID MANAGED CARE PROGRAM.— covery exemptions under this title for Indi- health care provider that is a federally- The term ‘Medicaid managed care program’ ans.’’. qualified health center under this title but means a program under sections 1903(m), 1905(t), and 1932 and includes a managed care SEC. 3302. RULES APPLICABLE UNDER MEDICAID not a participating provider with respect to AND CHIP TO MANAGED CARE ENTI- the entity, for the provision of covered Med- program operating under a waiver under sec- TIES WITH RESPECT TO INDIAN EN- icaid managed care services by such provider tion 1915(b) or 1115 or otherwise.’’. ROLLEES AND INDIAN HEALTH CARE to an Indian enrollee of the entity at a rate (b) APPLICATION TO CHIP.—Subject to sec- PROVIDERS AND INDIAN MANAGED equal to the amount of payment that the en- tion l013(d), section 2107(e)(1) of such Act (42 CARE ENTITIES. tity would pay a federally-qualified health U.S.C. 1397gg(1)) is amended by adding at the (a) IN GENERAL.—Section 1932 of the Social center that is a participating provider with end the following new subparagraph: Security Act (42 U.S.C. 1396u–2) is amended respect to the entity but is not an Indian ‘‘(E) Subsections (a)(2)(C) and (h) of section by adding at the end the following new sub- health care provider for such services. 1932.’’. section: ‘‘(II) CONTINUED APPLICATION OF STATE RE- SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH CARE PRO- ‘‘(h) SPECIAL RULES WITH RESPECT TO IN- QUIREMENT TO MAKE SUPPLEMENTAL PAY- GRAMS FUNDED UNDER THE SOCIAL DIAN ENROLLEES, INDIAN HEALTH CARE PRO- MENT.—Nothing in subclause (I) or subpara- SECURITY ACT INVOLVING INDIAN VIDERS, AND INDIAN MANAGED CARE ENTI- graph (A) or (B) shall be construed as HEALTH PROGRAMS AND URBAN IN- TIES.— waiving the application of section 1902(bb)(5) DIAN ORGANIZATIONS. ‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN regarding the State plan requirement to (a) CONSULTATION WITH TRIBAL TECHNICAL HEALTH CARE PROVIDER AS PRIMARY CARE PRO- make any supplemental payment due under ADVISORY GROUP (TTAG).—The Secretary of VIDER.—In the case of a non-Indian Medicaid such section to a federally-qualified health Health and Human Services shall maintain managed care entity that— center for services furnished by such center within the Centers for Medicaid & Medicare ‘‘(A) has an Indian enrolled with the enti- to an enrollee of a managed care entity (re- Services (CMS) a Tribal Technical Advisory ty; and gardless of whether the federally-qualified Group (TTAG), which was first established in

VerDate Nov 24 2008 02:44 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00094 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.048 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1197 accordance with requirements of the charter striking ‘‘1902(a)(72)’’ and inserting scribed in clause (A) of section 1842(b)(6)), dated September 30, 2003, and the Secretary ‘‘1902(a)(73)’’. from the Federal Supplementary Medical In- of Health and Human Services shall include (3) Section 1902(a) of the Social Security surance Trust Fund established under sec- in such Group a representative of a national Act (as amended by CHIPRA) is amended by tion 1841 an amount equal to 75 percent of urban Indian health organization and a rep- striking ‘‘and’’ at the end of paragraph (71), the Secretary’s estimate (based on claims resentative of the Indian Health Service. The by striking the period at the end of the para- submitted not later than 2 months after the inclusion of a representative of a national graph (72) added by CHIPRA and inserting ‘‘; end of the payment year) of the allowed urban Indian health organization in such and’’ and by redesignated the paragraph (72) charges under this part for all such covered Group shall not affect the nonapplication of added to such section by subsection (b)(1) of professional services furnished by the eligi- the Federal Advisory Committee Act (5 this section as paragraph (73). ble professional during such year. U.S.C. App.) to such Group. SEC. 3304. APPLICATION OF PROMPT PAY RE- ‘‘(ii) NO INCENTIVE PAYMENTS WITH RESPECT (b) SOLICITATION OF ADVICE UNDER MED- QUIREMENTS TO NURSING FACILI- TO YEARS AFTER 2015.—No incentive payments ICAID AND CHIP.— TIES. may be made under this subsection with re- (1) MEDICAID STATE PLAN AMENDMENT.— Section 1902(a)(37)(A) of the Social Secu- spect to a year after 2015. Subject to subsection (d), section 1902(a) of rity Act (42 U.S.C. 1396a(a)(37)(A)) is amended ‘‘(B) LIMITATIONS ON AMOUNTS OF INCENTIVE the Social Security Act (42 U.S.C. 1396a(a)) is by inserting ‘‘, or by nursing facilities,’’ PAYMENTS.— amended— after ‘‘health facilities’’ ‘‘(i) IN GENERAL.—In no case shall the (A) in paragraph (70), by striking ‘‘and’’ at SEC. 3305. PERIOD OF APPLICATION; SUNSET. amount of the incentive payment provided the end; This subtitle and the amendments made by under this paragraph for an eligible profes- (B) in paragraph (71), by striking the pe- this subtitle shall be in effect only during sional for a payment year exceed the appli- riod at the end and inserting ‘‘; and’’; and the period that begins on April 1, 2009, and cable amount specified under this subpara- (C) by inserting after paragraph (71), the ends on December 31, 2010. On and after Jan- graph with respect to such eligible profes- following new paragraph: uary 1, 2011, the Social Security Act shall be sional and such year. ‘‘(72) in the case of any State in which 1 or applied as if this subtitle and the amend- ‘‘(ii) AMOUNT.—Subject to clauses (iii) more Indian Health Programs or Urban In- ments made by this subtitle had not been en- through (v), the applicable amount specified dian Organizations furnishes health care acted. in this subparagraph for an eligible profes- services, provide for a process under which TITLE IV—HEALTH INFORMATION sional is as follows: the State seeks advice on a regular, ongoing TECHNOLOGY ‘‘(I) For the first payment year for such basis from designees of such Indian Health professional, $15,000 (or, if the first payment Programs and Urban Indian Organizations on SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE. year for such eligible professional is 2011 or matters relating to the application of this (a) SHORT TITLE.—This title may be cited 2012, $18,000). title that are likely to have a direct effect on as the ‘‘Medicare and Medicaid Health Infor- ‘‘(II) For the second payment year for such such Indian Health Programs and Urban In- mation Technology for Economic and Clin- professional, $12,000. dian Organizations and that— ical Health Act’’ or the ‘‘M-HITECH Act’’. ‘‘(III) For the third payment year for such ‘‘(A) shall include solicitation of advice (b) TABLE OF CONTENTS OF TITLE.—The professional, $8,000. prior to submission of any plan amendments, table of contents for this title is as follows: ‘‘(IV) For the fourth payment year for such waiver requests, and proposals for dem- professional, $4,000. TITLE IV—HEALTH INFORMATION onstration projects likely to have a direct ef- ‘‘(V) For the fifth payment year for such TECHNOLOGY fect on Indians, Indian Health Programs, or professional, $2,000. Urban Indian Organizations; and Sec. 4001. Short title; table of contents of ‘‘(VI) For any succeeding payment year for ‘‘(B) may include appointment of an advi- title. such professional, $0. sory committee and of a designee of such In- Subtitle A—Medicare Program ‘‘(iii) PHASE DOWN FOR ELIGIBLE PROFES- dian Health Programs and Urban Indian Or- Sec. 4201. Incentives for eligible profes- SIONALS FIRST ADOPTING EHR IN 2014.—If the ganizations to the medical care advisory sionals. first payment year for an eligible profes- committee advising the State on its State Sec. 4202. Incentives for hospitals. sional is 2014, then the amount specified in plan under this title.’’. Sec. 4203. Premium hold harmless and im- this subparagraph for a payment year for (2) APPLICATION TO CHIP.—Subject to sub- plementation funding. such professional is the same as the amount section (d), section 2107(e)(1) of such Act (42 Sec. 4204. Non-application of phased-out in- specified in clause (ii) for such payment year U.S.C. 1397gg(e)(1)), as amended by section direct medical education (IME) for an eligible professional whose first pay- 3302(b)(2), is amended— adjustment factor for fiscal ment year is 2013. (A) by redesignating subparagraphs (B) year 2009. ‘‘(iv) INCREASE FOR CERTAIN RURAL ELIGIBLE through (E) as subparagraphs (C) through Sec. 4205. Study on application of EHR pay- PROFESSIONALS.—In the case of an eligible (F), respectively; and ment incentives for providers professional who predominantly furnishes (B) by inserting after subparagraph (A), not receiving other incentive services under this part in a rural area that the following new subparagraph: payments. is designated by the Secretary (under section ‘‘(B) Section 1902(a)(72) (relating to requir- Sec. 4206. Study on availability of open 332(a)(1)(A) of the Public Health Service Act) ing certain States to seek advice from des- source health information tech- as a health professional shortage area, the ignees of Indian Health Programs and Urban nology systems. amount that would otherwise apply for a Indian Organizations).’’. Subtitle B—Medicaid Funding payment year for such professional under (c) RULE OF CONSTRUCTION.—Nothing in the subclauses (I) through (V) of clause (ii) shall Sec. 4211. Medicaid provider EHR adoption amendments made by this section shall be be increased by 25 percent. In implementing and operation payments; imple- construed as superseding existing advisory the preceding sentence, the Secretary may, mentation funding. committees, working groups, guidance, or as determined appropriate, apply provisions other advisory procedures established by the Subtitle A—Medicare Program of subsections (m) and (u) of section 1833 in Secretary of Health and Human Services or SEC. 4201. INCENTIVES FOR ELIGIBLE PROFES- a similar manner as such provisions apply by any State with respect to the provision of SIONALS. under such subsection. health care to Indians. (a) INCENTIVE PAYMENTS.—Section 1848 of ‘‘(v) NO INCENTIVE PAYMENT IF FIRST ADOPT- (d) CONTINGENCY RULE.—If the Children’s the Social Security Act (42 U.S.C. 1395w–4) is ING AFTER 2014.—If the first payment year for Health Insurance Program Reauthorization amended by adding at the end the following an eligible professional is after 2014 then the Act of 2009 (in this subsection referred to as new subsection: applicable amount specified in this subpara- ‘‘CHIPRA’’) has been enacted as of the date ‘‘(o) INCENTIVES FOR ADOPTION AND MEAN- graph for such professional for such year and of enactment of this Act, the following shall INGFUL USE OF CERTIFIED EHR TECH- any subsequent year shall be $0. apply: NOLOGY.— ‘‘(C) NON-APPLICATION TO HOSPITAL-BASED (1) Subparagraph (I) of section 2107(e) of ‘‘(1) INCENTIVE PAYMENTS.— ELIGIBLE PROFESSIONALS.— the Social Security Act (as redesignated by ‘‘(A) IN GENERAL.— ‘‘(i) IN GENERAL.—No incentive payment CHIPRA) is redesignated as subparagraph (K) ‘‘(i) IN GENERAL.—Subject to clause (ii) and may be made under this paragraph in the and the subparagraph (E) added to section the succeeding subparagraphs of this para- case of a hospital-based eligible professional. 2107(e) of the Social Security Act by section graph, with respect to covered professional ‘‘(ii) HOSPITAL-BASED ELIGIBLE PROFES- 3302(b) is redesignated as subparagraph (J). services furnished by an eligible professional SIONAL.—For purposes of clause (i), the term (2) Subparagraphs (D) through (H) of sec- during a payment year (as defined in sub- ‘hospital-based eligible professional’ means, tion 2107(e) of the Social Security Act (as paragraph (E)), if the eligible professional is with respect to covered professional services added and redesignated by CHIPRA) are re- a meaningful EHR user (as determined under furnished by an eligible professional during designated as subparagraphs (E) through (I), paragraph (2)) for the reporting period with the reporting period for a payment year, an respectively and the subparagraph (B) of sec- respect to such year, in addition to the eligible professional, such as a pathologist, tion 2107(e) of the Social Security Act added amount otherwise paid under this part, there anesthesiologist, or emergency physician, by subsection (b)(2) of this section is redesig- also shall be paid to the eligible professional who furnishes substantially all of such serv- nated as subparagraph (D) and amended by (or to an employer or facility in the cases de- ices in a hospital setting (whether inpatient

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00095 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.048 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1198 CONGRESSIONAL RECORD — SENATE January 30, 2009

or outpatient) and through the use of the fa- The Secretary may provide for the use of al- ‘‘(D) POSTING ON WEBSITE.—The Secretary cilities and equipment, including qualified ternative means for meeting the require- shall post on the Internet website of the Cen- electronic health records, of the hospital. ments of clauses (i), (ii), and (iii) in the case ters for Medicare & Medicaid Services, in an ‘‘(D) PAYMENT.— of an eligible professional furnishing covered easily understandable format, a list of the ‘‘(i) FORM OF PAYMENT.—The payment professional services in a group practice (as names, business addresses, and business under this paragraph may be in the form of defined by the Secretary). The Secretary phone numbers of the eligible professionals a single consolidated payment or in the form shall seek to improve the use of electronic who are meaningful EHR users and, as deter- of such periodic installments as the Sec- health records and health care quality over mined appropriate by the Secretary, of group retary may specify. time by requiring more stringent measures practices receiving incentive payments ‘‘(ii) COORDINATION OF APPLICATION OF LIMI- of meaningful use selected under this para- under paragraph (1). TATION FOR PROFESSIONALS IN DIFFERENT graph. ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— PRACTICES.—In the case of an eligible profes- ‘‘(B) REPORTING ON MEASURES.— For purposes of this section, the term ‘cer- sional furnishing covered professional serv- ‘‘(i) SELECTION.—The Secretary shall select tified EHR technology’ means a qualified ices in more than one practice (as specified measures for purposes of subparagraph electronic health record (as defined in by the Secretary), the Secretary shall estab- (A)(iii) but only consistent with the fol- 3000(13) of the Public Health Service Act) lish rules to coordinate the incentive pay- lowing: that is certified pursuant to section 3001(c)(5) ments, including the application of the limi- ‘‘(I) The Secretary shall provide preference of such Act as meeting standards adopted tation on amounts of such incentive pay- to clinical quality measures that have been under section 3004 of such Act that are appli- ments under this paragraph, among such cable to the type of record involved (as de- endorsed by the entity with a contract with practices. termined by the Secretary, such as an ambu- the Secretary under section 1890(a). ‘‘(iii) COORDINATION WITH MEDICAID.—The latory electronic health record for office- ‘‘(II) Prior to any measure being selected Secretary shall seek, to the maximum extent based physicians or an inpatient hospital under this subparagraph, the Secretary shall practicable, to avoid duplicative require- electronic health record for hospitals). publish in the Federal Register such measure ments from Federal and State Governments ‘‘(5) DEFINITIONS.—For purposes of this sub- and provide for a period of public comment to demonstrate meaningful use of certified section: on such measure. EHR technology under this title and title ‘‘(A) COVERED PROFESSIONAL SERVICES.— XIX. In doing so, the Secretary may deem ‘‘(ii) LIMITATION.—The Secretary may not The term ‘covered professional services’ has satisfaction of State requirements for such require the electronic reporting of informa- the meaning given such term in subsection meaningful use for a payment year under tion on clinical quality measures under sub- (k)(3). paragraph (A)(iii) unless the Secretary has title XIX to be sufficient to qualify as mean- ‘‘(B) ELIGIBLE PROFESSIONAL.—The term ingful use under this subsection and sub- the capacity to accept the information elec- ‘eligible professional’ means a physician, as section (a)(7) and vice versa. The Secretary tronically, which may be on a pilot basis. defined in section 1861(r). may also adjust the reporting periods under ‘‘(iii) COORDINATION OF REPORTING OF INFOR- ‘‘(C) REPORTING PERIOD.—The term ‘report- such title and such subsections in order to MATION.—In selecting such measures, and in ing period’ means any period (or periods), carry out this clause. establishing the form and manner for report- with respect to a payment year, as specified ‘‘(E) PAYMENT YEAR DEFINED.— ing measures under subparagraph (A)(iii), by the Secretary.’’. ‘‘(i) IN GENERAL.—For purposes of this sub- the Secretary shall seek to avoid redundant (b) INCENTIVE PAYMENT ADJUSTMENT.—Sec- section, the term ‘payment year’ means a or duplicative reporting otherwise required, tion 1848(a) of the Social Security Act (42 year beginning with 2011. including reporting under subsection U.S.C. 1395w–4(a)) is amended by adding at ‘‘(ii) FIRST, SECOND, ETC. PAYMENT YEAR.— (k)(2)(C). the end the following new paragraph: The term ‘first payment year’ means, with ‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF respect to covered professional services fur- CERTIFIED EHR TECHNOLOGY AND INFORMATION CERTIFIED EHR TECHNOLOGY.— nished by an eligible professional, the first EXCHANGE.— ‘‘(A) ADJUSTMENT.— year for which an incentive payment is made ‘‘(i) IN GENERAL.—A professional may sat- ‘‘(i) IN GENERAL.—Subject to subparagraphs for such services under this subsection. The isfy the demonstration requirement of (B) and (D), with respect to covered profes- terms ‘second payment year’, ‘third payment clauses (i) and (ii) of subparagraph (A) sional services furnished by an eligible pro- year’, ‘fourth payment year’, and ‘fifth pay- through means specified by the Secretary, fessional during 2015 or any subsequent pay- ment year’ mean, with respect to covered which may include— ment year, if the eligible professional is not professional services furnished by such eligi- ‘‘(I) an attestation; a meaningful EHR user (as determined under ble professional, each successive year imme- ‘‘(II) the submission of claims with appro- subsection (o)(2)) for a reporting period for diately following the first payment year for priate coding (such as a code indicating that the year, the fee schedule amount for such such professional. a patient encounter was documented using services furnished by such professional dur- ‘‘(2) MEANINGFUL EHR USER.— certified EHR technology); ing the year (including the fee schedule ‘‘(A) IN GENERAL.—For purposes of para- ‘‘(III) a survey response; amount for purposes of determining a pay- graph (1), an eligible professional shall be ‘‘(IV) reporting under subparagraph ment based on such amount) shall be equal treated as a meaningful EHR user for a re- (A)(iii); and to the applicable percent of the fee schedule porting period for a payment year (or, for ‘‘(V) other means specified by the Sec- amount that would otherwise apply to such purposes of subsection (a)(7), for a reporting retary. services under this subsection (determined period under such subsection for a year) if ‘‘(ii) USE OF PART D DATA.—Notwith- after application of paragraph (3) but with- each of the following requirements is met: standing sections 1860D–15(d)(2)(B) and out regard to this paragraph). ‘‘(i) MEANINGFUL USE OF CERTIFIED EHR 1860D–15(f)(2), the Secretary may use data re- ‘‘(ii) APPLICABLE PERCENT.—Subject to TECHNOLOGY.—The eligible professional dem- garding drug claims submitted for purposes clause (iii), for purposes of clause (i), the onstrates to the satisfaction of the Sec- of section 1860D–15 that are necessary for term ‘applicable percent’ means— retary, in accordance with subparagraph purposes of subparagraph (A). ‘‘(I) for 2015, 99 percent (or, in the case of (C)(i), that during such period the profes- ‘‘(3) APPLICATION.— an eligible professional who was subject to sional is using certified EHR technology in a ‘‘(A) PHYSICIAN REPORTING SYSTEM RULES.— the application of the payment adjustment meaningful manner, which shall include the Paragraphs (5), (6), and (8) of subsection (k) under section 1848(a)(5) for 2014, 98 percent); use of electronic prescribing as determined shall apply for purposes of this subsection in ‘‘(II) for 2016, 98 percent; and to be appropriate by the Secretary. the same manner as they apply for purposes ‘‘(III) for 2017 and each subsequent year, 97 ‘‘(ii) INFORMATION EXCHANGE.—The eligible of such subsection. percent. professional demonstrates to the satisfaction ‘‘(B) COORDINATION WITH OTHER PAY- ‘‘(iii) AUTHORITY TO DECREASE APPLICABLE of the Secretary, in accordance with sub- MENTS.—The provisions of this subsection PERCENTAGE FOR 2018 AND SUBSEQUENT paragraph (C)(i), that during such period shall not be taken into account in applying YEARS.—For 2018 and each subsequent year, such certified EHR technology is connected the provisions of subsection (m) of this sec- if the Secretary finds that the proportion of in a manner that provides, in accordance tion and of section 1833(m) and any payment eligible professionals who are meaningful with law and standards applicable to the ex- under such provisions shall not be taken into EHR users (as determined under subsection change of information, for the electronic ex- account in computing allowable charges (o)(2)) is less than 75 percent, the applicable change of health information to improve the under this subsection. percent shall be decreased by 1 percentage quality of health care, such as promoting ‘‘(C) LIMITATIONS ON REVIEW.—There shall point from the applicable percent in the pre- care coordination. be no administrative or judicial review under ceding year, but in no case shall the applica- ‘‘(iii) REPORTING ON MEASURES USING EHR.— section 1869, section 1878, or otherwise of the ble percent be less than 95 percent. Subject to subparagraph (B)(ii) and using determination of any incentive payment ‘‘(B) SIGNIFICANT HARDSHIP EXCEPTION.— such certified EHR technology, the eligible under this subsection and the payment ad- The Secretary may, on a case-by-case basis, professional submits information for such justment under subsection (a)(7), including exempt an eligible professional from the ap- period, in a form and manner specified by the the determination of a meaningful EHR user plication of the payment adjustment under Secretary, on such clinical quality measures under paragraph (2), a limitation under para- subparagraph (A) if the Secretary deter- and such other measures as selected by the graph (1)(B), and the exception under sub- mines, subject to annual renewal, that com- Secretary under subparagraph (B)(i). section (a)(7)(B). pliance with the requirement for being a

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00096 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.048 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1199 meaningful EHR user would result in a sig- under such section and not under this sub- defined in section 1848(o)(2)) for a year speci- nificant hardship, such as in the case of an section. fied by the Secretary; and eligible professional who practices in a rural ‘‘(ii) METHODS.—In the case of an eligible ‘‘(B) whether each eligible hospital de- area without sufficient Internet access. In no professional described in paragraph (2) who is scribed in subsection (m)(1), with respect to case may an eligible professional be granted eligible for an incentive payment under sec- such organization, is a meaningful EHR user an exemption under this subparagraph for tion 1848(o)(1)(A) but is not described in (as defined in section 1886(n)(3)) for an appli- more than 5 years. clause (i) for the same payment period, the cable period specified by the Secretary. ‘‘(C) APPLICATION OF PHYSICIAN REPORTING Secretary shall develop a process— ‘‘(7) POSTING ON WEBSITE.—The Secretary SYSTEM RULES.—Paragraphs (5), (6), and (8) of ‘‘(I) to ensure that duplicate payments are shall post on the Internet website of the Cen- subsection (k) shall apply for purposes of not made with respect to an eligible profes- ters for Medicare & Medicaid Services, in an this paragraph in the same manner as they sional both under this subsection and under easily understandable format, a list of the apply for purposes of such subsection. section 1848(o)(1)(A); and names, business addresses, and business ‘‘(D) NON-APPLICATION TO HOSPITAL-BASED ‘‘(II) to collect data from Medicare Advan- phone numbers of— ELIGIBLE PROFESSIONALS.—No payment ad- tage organizations to ensure against such ‘‘(A) each qualifying MA organization re- justment may be made under subparagraph duplicate payments. ceiving an incentive payment under this sub- (A) in the case of hospital-based eligible pro- ‘‘(C) FIXED SCHEDULE FOR APPLICATION OF section for eligible professionals of the orga- fessionals (as defined in subsection LIMITATION ON INCENTIVE PAYMENTS FOR ALL nization; and (o)(1)(C)(ii)). ELIGIBLE PROFESSIONALS.—In applying sec- ‘‘(B) the eligible professionals of such orga- ‘‘(E) DEFINITIONS.—For purposes of this tion 1848(o)(1)(B)(ii) under subparagraph (A), nization for which such incentive payment is paragraph: in accordance with rules specified by the based.’’. ‘‘(i) COVERED PROFESSIONAL SERVICES.—The Secretary, a qualifying MA organization (d) CONFORMING AMENDMENTS.—Section term ‘covered professional services’ has the shall specify a year (not earlier than 2011) that shall be treated as the first payment 1853 of the Social Security Act (42 U.S.C. meaning given such term in subsection 1395w–23) is amended— (k)(3). year for all eligible professionals with re- spect to such organization. (1) in subsection (a)(1)(A), by striking ‘‘and ‘‘(ii) ELIGIBLE PROFESSIONAL.—The term (i)’’ and inserting ‘‘(i), and (l)’’; ‘eligible professional’ means a physician, as ‘‘(D) CAP FOR ECONOMIES OF SCALE.—In no case may an incentive payment be made (2) in subsection (c)— defined in section 1861(r). (A) in paragraph (1)(D)(i), by striking ‘‘sec- ‘‘(iii) REPORTING PERIOD.—The term ‘re- under this subsection, including under sub- paragraph (A), to a qualifying MA organiza- tion 1886(h)’’ and inserting ‘‘sections 1848(o) porting period’ means, with respect to a and 1886(h)’’; and year, a period specified by the Secretary.’’. tion with respect to more than 5,000 eligible professionals of the organization. (B) in paragraph (6)(A), by inserting after (c) APPLICATION TO CERTAIN MA-AFFILI- ‘‘(4) PAYMENT ADJUSTMENT.— ‘‘under part B,’’ the following: ‘‘excluding ex- ATED ELIGIBLE PROFESSIONALS.—Section 1853 ‘‘(A) IN GENERAL.—In applying section penditures attributable to subsections (a)(7) of the Social Security Act (42 U.S.C. 1395w– 1848(a)(7) under paragraph (1), instead of the and (o) of section 1848,’’; and 23) is amended by adding at the end the fol- payment adjustment being an applicable per- (3) in subsection (f), by inserting ‘‘and for lowing new subsection: cent of the fee schedule amount for a year payments under subsection (l)’’ after ‘‘with ‘‘(l) APPLICATION OF ELIGIBLE PROFES- under such section, subject to subparagraph the organization’’. SIONAL INCENTIVES FOR CERTAIN MA ORGANI- (D), the payment adjustment under para- (e) CONFORMING AMENDMENTS TO E-PRE- ZATIONS FOR ADOPTION AND MEANINGFUL USE graph (1) shall be equal to the percent speci- SCRIBING.— OF CERTIFIED EHR TECHNOLOGY.— fied in subparagraph (B) for such year of the (1) Section 1848(a)(5)(A) of the Social Secu- ‘‘(1) IN GENERAL.—Subject to paragraphs (3) payment amount otherwise provided under and (4), in the case of a qualifying MA orga- rity Act (42 U.S.C. 1395w–4(a)(5)(A)) is amend- this section for such year. ed— nization, the provisions of sections 1848(o) ‘‘(B) SPECIFIED PERCENT.—The percent and 1848(a)(7) shall apply with respect to eli- (A) in clause (i), by striking ‘‘or any subse- specified under this subparagraph for a year quent year’’ and inserting ‘‘, 2013, or 2014’’; gible professionals described in paragraph (2) is 100 percent minus a number of percentage of the organization who the organization at- and points equal to the product of— (B) in clause (ii), by striking ‘‘and each tests under paragraph (6) to be meaningful ‘‘(i) a percentage equal to 100 percent re- EHR users in a similar manner as they apply subsequent year’’. duced by the applicable percent (under sec- (2) Section 1848(m)(2) of such Act (42 U.S.C. to eligible professionals under such sections. tion 1848(a)(7)(A)(ii)) for the year; and 1395w–4(m)(2)) is amended— Incentive payments under paragraph (3) shall ‘‘(ii) a percentage equal to the Secretary’s (A) in subparagraph (A), by striking ‘‘For be made to and payment adjustments under estimate of the proportion for the year, of 2009’’ and inserting ‘‘Subject to subparagraph paragraph (4) shall apply to such qualifying the expenditures under parts A and B that (D), for 2009’’; and organizations. are not attributable to this part, that are at- (B) by adding at the end the following new ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— tributable to expenditures for physicians’ subparagraph: With respect to a qualifying MA organiza- services. ‘‘(D) LIMITATION WITH RESPECT TO EHR IN- tion, an eligible professional described in ‘‘(C) APPLICATION OF PAYMENT ADJUST- CENTIVE PAYMENTS.—The provisions of this this paragraph is an eligible professional (as MENT.—In the case that a qualifying MA or- paragraph shall not apply to an eligible pro- defined for purposes of section 1848(o)) who— ganization attests that not all eligible pro- ‘‘(A)(i) is employed by the organization; or fessionals of the organization are meaningful fessional (or, in the case of a group practice ‘‘(ii)(I) is employed by, or is a partner of, EHR users with respect to a year, the Sec- under paragraph (3)(C), to the group prac- an entity that through contract with the or- retary shall apply the payment adjustment tice) if, for the reporting period the eligible ganization furnishes at least 80 percent of under this paragraph based on the proportion professional (or group practice) receives an the entity’s patient care services to enrollees of all eligible professionals of the organiza- incentive payment under subsection (o)(1)(A) of such organization; and tion that are not meaningful EHR users for with respect to a certified EHR technology ‘‘(II) furnishes at least 75 percent of the such year. If the number of eligible profes- (as defined in subsection (o)(4)) that has the professional services of the eligible profes- sionals of the organization that are not capability of electronic prescribing.’’. sional to enrollees of the organization; and meaningful EHR users for such year exceeds (f) PROVIDING ASSISTANCE TO ELIGIBLE PRO- ‘‘(B) furnishes, on average, at least 20 5,000, such number shall be reduced to 5,000 FESSIONALS AND CERTAIN HOSPITALS.— hours per week of patient care services. for purposes of determining the proportion (1) IN GENERAL.—The Secretary of Health ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY- under the preceding sentence. and Human Services shall provide assistance MENTS.— ‘‘(5) QUALIFYING MA ORGANIZATION DE- to eligible professionals (as defined in sec- ‘‘(A) IN GENERAL.—In applying section FINED.—In this subsection and subsection tion 1848(o)(5), as added by subsection (a)), 1848(o) under paragraph (1), instead of the ad- (m), the term ‘qualifying MA organization’ Medicaid providers (as defined in section ditional payment amount under section means a Medicare Advantage organization 1903(t)(2) of such Act, as added by section 1848(o)(1)(A) and subject to subparagraph (B), that is organized as a health maintenance 4211(a)), and eligible hospitals (as defined in the Secretary may substitute an amount de- organization (as defined in section 2791(b)(3) section 1886(n)(6)(A) of such Act, as added by termined by the Secretary to the extent fea- of the Public Health Service Act). section 4202(a)) located in rural or other sible and practical to be similar to the esti- ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— medically underserved areas to successfully mated amount in the aggregate that would For purposes of this subsection and sub- choose, implement, and use certified EHR be payable if payment for services furnished section (m), a qualifying MA organization technology (as defined in section 1848(o)(4) of by such professionals was payable under part shall submit an attestation, in a form and the Social Security Act, as added by section B instead of this part. manner specified by the Secretary which 4201(a)). ‘‘(B) AVOIDING DUPLICATION OF PAYMENTS.— may include the submission of such attesta- (2) USE OF ENTITIES WITH EXPERTISE.—To ‘‘(i) IN GENERAL.—If an eligible professional tion as part of submission of the initial bid the extent practicable, the Secretary shall described in paragraph (2) is eligible for the under section 1854(a)(1)(A)(iv), identifying— provide such assistance through entities that maximum incentive payment under section ‘‘(A) whether each eligible professional de- have expertise in the choice, implementa- 1848(o)(1)(A) for the same payment period, scribed in paragraph (2), with respect to such tion, and use of such certified EHR tech- the payment incentive shall be made only organization is a meaningful EHR user (as nology.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00097 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.048 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1200 CONGRESSIONAL RECORD — SENATE January 30, 2009 SEC. 4202. INCENTIVES FOR HOSPITALS. vided by the total amount of the hospital’s certified EHR technology is connected in a (a) INCENTIVE PAYMENT.—Section 1886 of charges during such period. manner that provides, in accordance with the Social Security Act (42 U.S.C. 1395ww) is Insofar as the Secretary determines that law and standards applicable to the exchange amended by adding at the end the following data are not available on charity care nec- of information, for the electronic exchange new subsection: essary to calculate the portion of the for- of health information to improve the quality ‘‘(n) INCENTIVES FOR ADOPTION AND MEAN- mula specified in clause (ii)(II), the Sec- of health care, such as promoting care co- INGFUL USE OF CERTIFIED EHR TECH- retary shall use data on uncompensated care ordination. NOLOGY.— and may adjust such data so as to be an ap- ‘‘(iii) REPORTING ON MEASURES USING EHR.— ‘‘(1) IN GENERAL.—Subject to the suc- Subject to subparagraph (B)(ii) and using ceeding provisions of this subsection, with propriate proxy for charity care including a downward adjustment to eliminate bad debt such certified EHR technology, the eligible respect to inpatient hospital services fur- hospital submits information for such pe- nished by an eligible hospital during a pay- data from uncompensated care data. In the absence of the data necessary, with respect riod, in a form and manner specified by the ment year (as defined in paragraph (2)(G)), if Secretary, on such clinical quality measures the eligible hospital is a meaningful EHR to a hospital, for the Secretary to compute the amount described in clause (ii)(II), the and such other measures as selected by the user (as determined under paragraph (3)) for Secretary under subparagraph (B)(i). the reporting period with respect to such amount under such clause shall be deemed to year, in addition to the amount otherwise be 1. In the absence of data, with respect to The Secretary shall seek to improve the use paid under this section, there also shall be a hospital, necessary to compute the amount of electronic health records and health care paid to the eligible hospital, from the Fed- described in clause (i)(II), the amount under quality over time by requiring more strin- eral Hospital Insurance Trust Fund estab- such clause shall be deemed to be 0. gent measures of meaningful use selected lished under section 1817, an amount equal to ‘‘(E) TRANSITION FACTOR SPECIFIED.— under this paragraph. the applicable amount specified in paragraph ‘‘(i) IN GENERAL.—Subject to clause (ii), the ‘‘(B) REPORTING ON MEASURES.— (2)(A) for the hospital for such payment year. transition factor specified in this subpara- ‘‘(i) SELECTION.—The Secretary shall select ‘‘(2) PAYMENT AMOUNT.— graph for an eligible hospital for a payment measures for purposes of subparagraph ‘‘(A) IN GENERAL.—Subject to the suc- year is as follows: (A)(iii) but only consistent with the fol- ceeding subparagraphs of this paragraph, the ‘‘(I) For the first payment year for such lowing: applicable amount specified in this subpara- hospital, 1. ‘‘(I) The Secretary shall provide preference graph for an eligible hospital for a payment ‘‘(II) For the second payment year for such to clinical quality measures that have been year is equal to the product of the following: hospital, 3⁄4. selected for purposes of applying subsection ‘‘(i) INITIAL AMOUNT.—The sum of— ‘‘(III) For the third payment year for such (b)(3)(B)(viii) or that have been endorsed by ‘‘(I) the base amount specified in subpara- hospital, 1⁄2. the entity with a contract with the Sec- graph (B); plus ‘‘(IV) For the fourth payment year for such retary under section 1890(a). ‘‘(II) the discharge related amount speci- hospital, 1⁄4. ‘‘(II) Prior to any measure (other than a fied in subparagraph (C) for a 12-month pe- ‘‘(V) For any succeeding payment year for clinical quality measure that has been se- riod selected by the Secretary with respect such hospital, 0. lected for purposes of applying subsection to such payment year. ‘‘(ii) PHASE DOWN FOR ELIGIBLE HOSPITALS (b)(3)(B)(viii)) being selected under this sub- ‘‘(ii) MEDICARE SHARE.—The Medicare share FIRST ADOPTING EHR AFTER 2013.—If the first paragraph, the Secretary shall publish in the as specified in subparagraph (D) for the hos- payment year for an eligible hospital is after Federal Register such measure and provide pital for a period selected by the Secretary 2013, then the transition factor specified in for a period of public comment on such meas- with respect to such payment year. this subparagraph for a payment year for ure. ‘‘(iii) TRANSITION FACTOR.—The transition such hospital is the same as the amount ‘‘(ii) LIMITATIONS.—The Secretary may not factor specified in subparagraph (E) for the specified in clause (i) for such payment year require the electronic reporting of informa- hospital for the payment year. for an eligible hospital for which the first tion on clinical quality measures under sub- ‘‘(B) BASE AMOUNT.—The base amount spec- payment year is 2013. If the first payment paragraph (A)(iii) unless the Secretary has ified in this subparagraph is $2,000,000. year for an eligible hospital is after 2015 then the capacity to accept the information elec- ‘‘(C) DISCHARGE RELATED AMOUNT.—The dis- the transition factor specified in this sub- tronically, which may be on a pilot basis. charge related amount specified in this sub- paragraph for such hospital and for such year ‘‘(iii) COORDINATION OF REPORTING OF INFOR- paragraph for a 12-month period selected by and any subsequent year shall be 0. MATION.—In selecting such measures, and in the Secretary shall be determined as the sum ‘‘(F) FORM OF PAYMENT.—The payment establishing the form and manner for report- of the amount, based upon total discharges under this subsection for a payment year ing measures under subparagraph (A)(iii), (regardless of any source of payment) for the may be in the form of a single consolidated the Secretary shall seek to avoid redundant period, for each discharge up to the 23,000th payment or in the form of such periodic in- or duplicative reporting with reporting oth- discharge as follows: stallments as the Secretary may specify. erwise required, including reporting under ‘‘(i) For the 1,150th through the 9,200nd dis- ‘‘(G) PAYMENT YEAR DEFINED.— subsection (b)(3)(B)(viii). charge, $200. ‘‘(i) IN GENERAL.—For purposes of this sub- ‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF ‘‘(ii) For the 9,201st through the 13,800th section, the term ‘payment year’ means a CERTIFIED EHR TECHNOLOGY AND INFORMATION discharge, 50 percent of the amount specified fiscal year beginning with fiscal year 2011. EXCHANGE.— in clause (i). ‘‘(ii) FIRST, SECOND, ETC. PAYMENT YEAR.— ‘‘(i) IN GENERAL.—A hospital may satisfy ‘‘(iii) For the 13,801st through the 23,000th The term ‘first payment year’ means, with the demonstration requirement of clauses (i) discharge, 30 percent of the amount specified respect to inpatient hospital services fur- and (ii) of subparagraph (A) through means in clause (i). nished by an eligible hospital, the first fiscal specified by the Secretary, which may in- ‘‘(D) MEDICARE SHARE.—The Medicare year for which an incentive payment is made clude— share specified under this subparagraph for a for such services under this subsection. The ‘‘(I) an attestation; hospital for a period selected by the Sec- terms ‘second payment year’, ‘third payment ‘‘(II) the submission of claims with appro- retary for a payment year is equal to the year’, and ‘fourth payment year’ mean, with priate coding (such as a code indicating that fraction— respect to an eligible hospital, each succes- inpatient care was documented using cer- ‘‘(i) the numerator of which is the sum (for sive year immediately following the first tified EHR technology); such period and with respect to the hospital) payment year for that hospital. ‘‘(III) a survey response; of— ‘‘(3) MEANINGFUL EHR USER.— ‘‘(IV) reporting under subparagraph ‘‘(I) the number of inpatient-bed-days (as ‘‘(A) IN GENERAL.—For purposes of para- (A)(iii); and established by the Secretary) which are at- graph (1), an eligible hospital shall be treat- ‘‘(V) other means specified by the Sec- tributable to individuals with respect to ed as a meaningful EHR user for a reporting retary. whom payment may be made under part A; period for a payment year (or, for purposes of ‘‘(ii) USE OF PART D DATA.—Notwith- and subsection (b)(3)(B)(ix), for a reporting pe- standing sections 1860D–15(d)(2)(B) and ‘‘(II) the number of inpatient-bed-days (as riod under such subsection for a fiscal year) 1860D–15(f)(2), the Secretary may use data re- so established) which are attributable to in- if each of the following requirements are garding drug claims submitted for purposes dividuals who are enrolled with a Medicare met: of section 1860D–15 that are necessary for Advantage organization under part C; and ‘‘(i) MEANINGFUL USE OF CERTIFIED EHR purposes of subparagraph (A). ‘‘(ii) the denominator of which is the prod- TECHNOLOGY.—The eligible hospital dem- ‘‘(4) APPLICATION.— uct of— onstrates to the satisfaction of the Sec- ‘‘(A) LIMITATIONS ON REVIEW.—There shall ‘‘(I) the total number of inpatient-bed-days retary, in accordance with subparagraph be no administrative or judicial review under with respect to the hospital during such pe- (C)(i), that during such period the hospital is section 1869, section 1878, or otherwise of the riod; and using certified EHR technology in a mean- determination of any incentive payment ‘‘(II) the total amount of the hospital’s ingful manner. under this subsection and the payment ad- charges during such period, not including ‘‘(ii) INFORMATION EXCHANGE.—The eligible justment under subsection (b)(3)(B)(ix), in- any charges that are attributable to charity hospital demonstrates to the satisfaction of cluding the determination of a meaningful care (as such term is used for purposes of the Secretary, in accordance with subpara- EHR user under paragraph (3), determination hospital cost reporting under this title), di- graph (C)(i), that during such period such of measures applicable to services furnished

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00098 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.049 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1201 by eligible hospitals under this subsection, ‘‘(IV) For purposes of this clause, the term available to the Secretary, use such alter- and the exception under subsection ‘reporting period’ means, with respect to a native data and methodology to estimate (b)(3)(B)(ix)(II). fiscal year, any period (or periods), with re- such discharge related amount as the Sec- ‘‘(B) POSTING ON WEBSITE.—The Secretary spect to the fiscal year, as specified by the retary determines appropriate; and shall post on the Internet website of the Cen- Secretary.’’. ‘‘(ii) shall, insofar as data to determine the ters for Medicare & Medicaid Services, in an (2) CRITICAL ACCESS HOSPITALS.—Section medicare share described in section easily understandable format, a list of the 1814(l) of the Social Security Act (42 U.S.C. 1886(n)(2)(D) for an eligible hospital are not names of the eligible hospitals that are 1395f(l)) is amended— available to the Secretary, use such alter- meaningful EHR users under this subsection (A) in subparagraph (1), by striking ‘‘para- native data and methodology to estimate or subsection (b)(3)(B)(ix) and other relevant graph (2)’’ and inserting ‘‘paragraphs (2) and such share, which data and methodology data as determined appropriate by the Sec- (3)’’; and may include use of the inpatient bed days (or retary. The Secretary shall ensure that a (B) by adding at the end the following new discharges) with respect to an eligible hos- hospital has the opportunity to review the paragraph: pital during the appropriate period which are other relevant data that are to be made pub- ‘‘(3)(A) Subject to subparagraph (B), for fis- attributable to both individuals for whom lic with respect to the hospital prior to such cal year 2015 and each subsequent fiscal year, payment may be made under part A or indi- data being made public. in the case of a critical access hospital that viduals enrolled in an MA plan under a Medi- ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— is not a meaningful EHR user (as defined in care Advantage organization under this part The term ‘certified EHR technology’ has the section 1886(n)(3)) for the reporting period for as a proportion of the total number of pa- meaning given such term in section such fiscal year, paragraph (1) shall be ap- tient-bed-days (or discharges) with respect to 1848(o)(4). plied by substituting the applicable percent such hospital during such period. ‘‘(6) DEFINITIONS.—For purposes of this sub- under subparagraph (C) for the percent de- ‘‘(B) AVOIDING DUPLICATION OF PAYMENTS.— section: scribed in such paragraph (1). ‘‘(i) IN GENERAL.—In the case of a hospital ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eligi- ‘‘(B) The Secretary may, on a case-by-case that for a payment year is an eligible hos- ble hospital’ means— basis, exempt a critical access hospital from pital described in paragraph (2) and for which ‘‘(i) a subsection (d) hospital; and the application of subparagraph (A) with re- at least one-third of their discharges (or bed- ‘‘(ii) a critical access hospital (as defined spect to a fiscal year if the Secretary deter- days) of Medicare patients for the year are in section 1861(mm)(1)). mines, subject to annual renewal, that re- covered under part A, payment for the pay- quiring such hospital to be a meaningful ‘‘(B) REPORTING PERIOD.—The term ‘report- ment year shall be made only under section ing period’ means any period (or periods), EHR user during such fiscal year would re- 1886(n) and not under this subsection. with respect to a payment year, as specified sult in a significant hardship, such as in the ‘‘(ii) METHODS.—In the case of a hospital case of a hospital in a rural area without suf- by the Secretary.’’. that is an eligible hospital described in para- (b) INCENTIVE MARKET BASKET ADJUST- ficient Internet access. In no case may a hos- graph (2) and also is eligible for an incentive MENT.— pital be granted an exemption under this payment under section 1886(n) but is not de- (1) IN GENERAL.—Section 1886(b)(3)(B) of the subparagraph for more than 5 years. scribed in clause (i) for the same payment Social Security Act (42 U.S.C. ‘‘(C) The percent described in this subpara- period, the Secretary shall develop a proc- 1395ww(b)(3)(B)) is amended— graph is— ess— (A) in clause (viii)(I), by inserting ‘‘(or, be- ‘‘(i) for fiscal year 2015, 100.66 percent; ‘‘(I) to ensure that duplicate payments are ginning with fiscal year 2016, by one-quar- ‘‘(ii) for fiscal year 2016, 100.33 percent; and not made with respect to an eligible hospital ter)’’ after ‘‘2.0 percentage points’’; and ‘‘(iii) for fiscal year 2017 and each subse- both under this subsection and under section (B) by adding at the end the following new quent fiscal year, 100 percent.’’. 1886(n); and (c) APPLICATION TO CERTAIN MA-AFFILI- clause: ‘‘(II) to collect data from Medicare Advan- ATED ELIGIBLE HOSPITALS.—Section 1853 of ‘‘(ix)(I) For purposes of clause (i) for fiscal tage organizations to ensure against such year 2015 and each subsequent fiscal year, in the Social Security Act (42 U.S.C. 1395w-23), duplicate payments. the case of an eligible hospital (as defined in as amended by section 4201(c), is further ‘‘(4) PAYMENT ADJUSTMENT.— subsection (n)(6)(A)) that is not a meaningful amended by adding at the end the following ‘‘(A) Subject to paragraph (3), in the case EHR user (as defined in subsection (n)(3)) for new subsection: of a qualifying MA organization (as defined ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL the reporting period for such fiscal year, in section 1853(l)(5)), if, according to the at- INCENTIVES FOR CERTAIN MA ORGANIZATIONS three-quarters of the applicable percentage testation of the organization submitted FOR ADOPTION AND MEANINGFUL USE OF CER- increase otherwise applicable under clause under subsection (l)(6) for an applicable pe- TIFIED EHR TECHNOLOGY.— (i) for such fiscal year shall be reduced by riod, one or more eligible hospitals (as de- ‘‘(1) APPLICATION.—Subject to paragraphs fined in section 1886(n)(6)(A)) that are under 331⁄3 percent for fiscal year 2015, 662⁄3 percent for fiscal year 2016, and 100 percent for fiscal (3) and (4), in the case of a qualifying MA or- common corporate governance with such or- year 2017 and each subsequent fiscal year. ganization, the provisions of sections ganization and that serve individuals en- Such reduction shall apply only with respect 1814(l)(3), 1886(n), and 1886(b)(3)(B)(ix) shall rolled under a plan offered by such organiza- to the fiscal year involved and the Secretary apply with respect to eligible hospitals de- tion are not meaningful EHR users (as de- shall not take into account such reduction in scribed in paragraph (2) of the organization fined in section 1886(n)(3)) with respect to a computing the applicable percentage in- which the organization attests under sub- period, the payment amount payable under crease under clause (i) for a subsequent fiscal section (l)(6) to be meaningful EHR users in this section for such organization for such year. a similar manner as they apply to eligible period shall be the percent specified in sub- ‘‘(II) The Secretary may, on a case-by-case hospitals under such sections. Incentive pay- paragraph (B) for such period of the payment basis, exempt a subsection (d) hospital from ments under paragraph (3) shall be made to amount otherwise provided under this sec- the application of subclause (I) with respect and payment adjustments under paragraph tion for such period. to a fiscal year if the Secretary determines, (4) shall apply to such qualifying organiza- ‘‘(B) SPECIFIED PERCENT.—The percent subject to annual renewal, that requiring tions. specified under this subparagraph for a year such hospital to be a meaningful EHR user ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With is 100 percent minus a number of percentage during such fiscal year would result in a sig- respect to a qualifying MA organization, an points equal to the product of— nificant hardship, such as in the case of a eligible hospital described in this paragraph ‘‘(i) the number of the percentage point re- hospital in a rural area without sufficient is an eligible hospital (as defined in section duction effected under section Internet access. In no case may a hospital be 1886(n)(6)(A)) that is under common cor- 1886(b)(3)(B)(ix)(I) for the period; and granted an exemption under this subclause porate governance with such organization ‘‘(ii) the Medicare hospital expenditure for more than 5 years. and serves individuals enrolled under an MA proportion specified in subparagraph (C) for ‘‘(III) For fiscal year 2015 and each subse- plan offered by such organization. the year. quent fiscal year, a State in which hospitals ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY- ‘‘(C) MEDICARE HOSPITAL EXPENDITURE PRO- are paid for services under section 1814(b)(3) MENTS.— PORTION.—The Medicare hospital expenditure shall adjust the payments to each subsection ‘‘(A) IN GENERAL.—In applying section proportion under this subparagraph for a (d) hospital in the State that is not a mean- 1886(n)(2) under paragraph (1), instead of the year is the Secretary’s estimate of the pro- ingful EHR user (as defined in subsection additional payment amount under section portion, of the expenditures under parts A (n)(3)) in a manner that is designed to result 1886(n)(2), there shall be substituted an and B that are not attributable to this part, in an aggregate reduction in payments to amount determined by the Secretary to be that are attributable to expenditures for in- hospitals in the State that is equivalent to similar to the estimated amount in the ag- patient hospital services. the aggregate reduction that would have oc- gregate that would be payable if payment for ‘‘(D) APPLICATION OF PAYMENT ADJUST- curred if payments had been reduced to each services furnished by such hospitals was pay- MENT.—In the case that a qualifying MA or- subsection (d) hospital in the State in a man- able under part A instead of this part. In im- ganization attests that not all eligible hos- ner comparable to the reduction under the plementing the previous sentence, the Sec- pitals are meaningful EHR users with re- previous provisions of this clause. The State retary— spect to an applicable period, the Secretary shall report to the Secretary the method- ‘‘(i) shall, insofar as data to determine the shall apply the payment adjustment under ology it will use to make the payment ad- discharge related amount under section this paragraph based on a methodology spec- justment under the previous sentence. 1886(n)(2)(C) for an eligible hospital are not ified by the Secretary, taking into account

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00099 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.049 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1202 CONGRESSIONAL RECORD — SENATE January 30, 2009 the proportion of such eligible hospitals, or Services shall recompute payments for dis- significant level of health care to uninsured discharges from such hospitals, that are not charges occurring on or after October 1, 2008, individuals, Medicaid beneficiaries, SCHIP meaningful EHR users for such period. as if such paragraph had never been in effect. beneficiaries, and other vulnerable individ- ‘‘(5) POSTING ON WEBSITE.—The Secretary (b) NO EFFECT ON SUBSEQUENT YEARS.— uals. shall post on the Internet website of the Cen- Nothing in subsection (a) shall be construed (b) REPORT.—Not later than October 1, 2010, ters for Medicare & Medicaid Services, in an as having any effect on the application of the Secretary of Health and Human Services easily understandable format, — paragraph (d) of section 412.322 of title 42, shall submit to Congress a report on the ‘‘(A) a list of the names, business address- Code of Federal Regulations. findings and the conclusions of the study es, and business phone numbers of each SEC. 4205. STUDY ON APPLICATION OF EHR PAY- conducted under subsection (a), together qualifying MA organization receiving an in- MENT INCENTIVES FOR PROVIDERS with recommendations for such legislation centive payment under this subsection for el- NOT RECEIVING OTHER INCENTIVE and administrative action as the Secretary PAYMENTS. igible hospitals described in paragraph (2); determines appropriate. (a) STUDY.— and (1) IN GENERAL.—The Secretary of Health Subtitle B—Medicaid Funding ‘‘(B) a list of the names of the eligible hos- and Human Services shall conduct a study to pitals for which such incentive payment is SEC. 4211. MEDICAID PROVIDER EHR ADOPTION determine the extent to which and manner based.’’. AND OPERATION PAYMENTS; IMPLE- (d) CONFORMING AMENDMENTS.— in which payment incentives (such as under MENTATION FUNDING. (1) Section 1814(b) of the Social Security title XVIII or XIX of the Social Security (a) IN GENERAL.—Section 1903 of the Social Act (42 U.S.C. 1395f(b)) is amended— Act) and other funding for purposes of imple- Security Act (42 U.S.C. 1396b) is amended— (A) in paragraph (3), in the matter pre- menting and using certified EHR technology (1) in subsection (a)(3)— ceding subparagraph (A), by inserting ‘‘, sub- (as defined in section 1848(o)(4) of the Social (A) by striking ‘‘and’’ at the end of sub- ject to section 1886(d)(3)(B)(ix)(III),’’ after Security Act, as added by section 4311(a)) paragraph (D); ‘‘then’’; and should be made available to health care pro- (B) by striking ‘‘plus’’ at the end of sub- (B) by adding at the end the following: viders who are receiving minimal or no pay- paragraph (E) and inserting ‘‘and’’; and ‘‘For purposes of applying paragraph (3), ment incentives or other funding under this (C) by adding at the end the following new there shall be taken into account incentive Act, under title XVIII or XIX of such Act, or subparagraph: payments, and payment adjustments under otherwise, for such purposes. ‘‘(F)(i) 100 percent of so much of the sums subsection (b)(3)(B)(ix) or (n) of section (2) DETAILS OF STUDY.—Such study shall in- expended during such quarter as are attrib- 1886.’’. clude an examination of— utable to payments for certified EHR tech- (2) Section 1851(i)(1) of the Social Security (A) the adoption rates of certified EHR nology (and support services including main- Act (42 U.S.C. 1395w–21(i)(1)) is amended by technology (as so defined) by such health tenance and training that is for, or is nec- striking ‘‘and 1886(h)(3)(D)’’ and inserting care providers; essary for the adoption and operation of, ‘‘1886(h)(3)(D), and 1853(m)’’. (B) the clinical utility of such technology such technology) by Medicaid providers de- (3) Section 1853 of the Social Security Act by such health care providers; scribed in subsection (t)(1); and (42 U.S.C. 1395w–23), as amended by section (C) whether the services furnished by such ‘‘(ii) 90 percent of so much of the sums ex- 4311(d)(1), is amended— health care providers are appropriate for or pended during such quarter as are attrib- (A) in subsection (c)— would benefit from the use of such tech- utable to payments for reasonable adminis- (i) in paragraph (1)(D)(i), by striking nology; trative expenses related to the administra- ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and (D) the extent to which such health care tion of payments described in clause (i) if the 1886(n)’’; and providers work in settings that might other- State meets the condition described in sub- (ii) in paragraph (6)(A), by inserting ‘‘and wise receive an incentive payment or other section (t)(9); plus’’; and subsections (b)(3)(B)(ix) and (n) of section funding under this Act, title XVIII or XIX of (2) by inserting after subsection (s) the fol- 1886’’ after ‘‘section 1848’’; and the Social Security Act, or otherwise; lowing new subsection: (E) the potential costs and the potential (B) in subsection (f), by inserting ‘‘and sub- ‘‘(t)(1)(A) For purposes of subsection benefits of making payment incentives and section (m)’’ after ‘‘under subsection (l)’’. (a)(3)(F), the payments for certified EHR other funding available to such health care SEC. 4203. PREMIUM HOLD HARMLESS AND IM- technology (and support services including providers; and PLEMENTATION FUNDING. maintenance that is for, or is necessary for (F) any other issues the Secretary deems (a) PREMIUM HOLD HARMLESS.— the operation of, such technology) by Med- to be appropriate. (1) IN GENERAL.—Section 1839(a)(1) of the icaid providers described in this paragraph (b) REPORT.—Not later than June 30, 2010, Social Security Act (42 U.S.C. 1395r(a)(1)) is are payments made by the State in accord- the Secretary shall submit to Congress a re- amended by adding at the end the following: ance with this subsection of the applicable port on the findings and conclusions of the ‘‘In applying this paragraph there shall not percent of the net allowable costs of Med- study conducted under subsection (a). be taken into account additional payments icaid providers (as defined in paragraph (2)) SEC. 4206. STUDY ON AVAILABILITY OF OPEN under section 1848(o) and section 1853(l)(3) for such technology (and support services). and the Government contribution under sec- SOURCE HEALTH INFORMATION TECHNOLOGY SYSTEMS. ‘‘(B) For purposes of subparagraph (A), the tion 1844(a)(3).’’. (a) IN GENERAL.— term ‘applicable percent’ means— (2) PAYMENT.—Section 1844(a) of such Act (1) STUDY.—The Secretary of Health and ‘‘(i) in the case of a Medicaid provider de- (42 U.S.C. 1395w(a)) is amended— Human Services shall, in consultation with scribed in paragraph (2)(A), 85 percent; (A) in paragraph (2), by striking the period the Under Secretary for Health of the Vet- ‘‘(ii) in the case of a Medicaid provider de- at the end and inserting ‘‘; plus’’; and erans Health Administration, the Director of scribed in clause (i) or (ii) of paragraph (B) by adding at the end the following new the Indian Health Service, the Secretary of (2)(B), 100 percent; and paragraph: Defense, the Director of the Agency for ‘‘(iii) in the case of a Medicaid provider de- ‘‘(3) a Government contribution equal to Healthcare Research and Quality, the Ad- scribed in clause (iii) of paragraph (2)(B), a the amount of payment incentives payable ministrator of the Health Resources and percent specified by the Secretary, but not under sections 1848(o) and 1853(l)(3).’’. Services Administration, and the Chairman less than 85 percent. (b) IMPLEMENTATION FUNDING.—In addition of the Federal Communications Commission, ‘‘(2) In this subsection and subsection to funds otherwise available, out of any conduct a study on— (a)(3)(F), the term ‘Medicaid provider’ funds in the Treasury not otherwise appro- priated, there are appropriated to the Sec- (A) the current availability of open source means— retary of Health and Human Services for the health information technology systems to ‘‘(A) an eligible professional (as defined in Center for Medicare & Medicaid Services Federal safety net providers (including paragraph (3)(B)) who is not hospital-based Program Management Account, $100,000,000 small, rural providers); and has at least 30 percent of the profes- for each of fiscal years 2009 through 2015 and (B) the total cost of ownership of such sys- sional’s patient volume (as estimated in ac- $45,000,000 for each succeeding fiscal year tems in comparison to the cost of propri- cordance with standards established by the through fiscal year 2018, which shall be avail- etary commercial products available; Secretary) attributable to individuals who able for purposes of carrying out the provi- (C) the ability of such systems to respond are receiving medical assistance under this sions of (and amendments made by) this to the needs of, and be applied to, various title; and part. Amounts appropriated under this sub- populations (including children and disabled ‘‘(B)(i) a children’s hospital, (ii) an acute- section for a fiscal year shall be available individuals); and care hospital that is not described in clause until expended. (D) the capacity of such systems to facili- (i) and that has at least 10 percent of the hos- SEC. 4204. NON-APPLICATION OF PHASED-OUT IN- tate interoperability. pital’s patient volume (as estimated in ac- DIRECT MEDICAL EDUCATION (IME) (2) CONSIDERATIONS.—In conducting the cordance with standards established by the ADJUSTMENT FACTOR FOR FISCAL study under paragraph (1), the Secretary of Secretary) attributable to individuals who YEAR 2009. Health and Human Services shall take into are receiving medical assistance under this (a) IN GENERAL.—Section 412.322 of title 42, account the circumstances of smaller health title, or (iii) a Federally-qualified health Code of Federal Regulations, shall be applied care providers, health care providers located center or rural health clinic that has at least without regard to paragraph (c) of such sec- in rural or other medically underserved 30 percent of the center’s or clinic’s patient tion, and the Secretary of Health and Human areas, and safety net providers that deliver a volume (as estimated in accordance with

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00100 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.049 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1203 standards established by the Secretary) at- determined by the Secretary as being ade- health care providers provided under this tributable to individuals who are receiving quate to adopt and maintain certified EHR title or title XVIII, to assure no duplication medical assistance under this title. technology, consistent with paragraph (6). of funding. The Secretary shall promulgate An eligible professional shall not qualify as ‘‘(5) Payments described in paragraph (1) regulations to carry out the preceding sen- a Medicaid provider under this subsection are not in accordance with this subsection tence. ‘‘(8) In carrying out paragraph (5)(C), the unless the professional has waived, in a man- unless the following requirements are met: State and Secretary shall seek, to the max- ner specified by the Secretary, any right to ‘‘(A) The State provides assurances satis- imum extent practicable, to avoid duplica- payment under section 1848(o) with respect factory to the Secretary that amounts re- tive requirements from Federal and State to the adoption or support of certified EHR ceived under subsection (a)(3)(F) with re- spect to costs of a Medicaid provider are paid Governments to demonstrate meaningful use technology by the eligible professional. In of certified EHR technology under this title applying clauses (ii) and (iii) of subparagraph directly to such provider without any deduc- tion or rebate. and title XVIII. In doing so, the Secretary (B), the standards established by the Sec- may deem satisfaction of requirements for retary for patient volume shall include indi- ‘‘(B) Such Medicaid provider is responsible for payment of the costs described in such such meaningful use for a payment year viduals enrolled in a Medicaid managed care under title XVIII to be sufficient to qualify plan (under section 1903(m) or section 1932). paragraph that are not provided under this title. as meaningful use under this subsection. The ‘‘(3) In this subsection and subsection Secretary may also specify the reporting pe- (a)(3)(F): ‘‘(C) With respect to payments to such Medicaid provider for costs other than costs riods under this subsection in order to carry ‘‘(A) The term ‘certified EHR technology’ out this paragraph. means a qualified electronic health record related to the initial adoption of certified EHR technology, the Medicaid provider dem- ‘‘(9) In order to be provided Federal finan- (as defined in 3000(13) of the Public Health cial participation under subsection Service Act) that is certified pursuant to onstrates meaningful use of certified EHR technology through a means that is approved (a)(3)(F)(ii), a State must demonstrate to the section 3001(c)(5) of such Act as meeting satisfaction of the Secretary, that the by the State and acceptable to the Sec- standards adopted under section 3004 of such State— retary, and that may be based upon the Act that are applicable to the type of record ‘‘(A) is using the funds provided for the methodologies applied under section 1848(o) involved (as determined by the Secretary, purposes of administering payments under or 1886(n). In establishing such means, which such as an ambulatory electronic health this subsection, including tracking of mean- may include the reporting of clinical quality record for office-based physicians or an inpa- ingful use by Medicaid providers; measures to the State, the State shall ensure tient hospital electronic health record for ‘‘(B) is conducting adequate oversight of that populations with unique needs, such as hospitals). the program under this subsection, including children, are appropriately addressed. ‘‘(B) The term ‘eligible professional’ means routine tracking of meaningful use attesta- ‘‘(D) To the extent specified by the Sec- a physician as defined in paragraphs (1) and tions and reporting mechanisms; and retary, the certified EHR technology is com- (2) of section 1861(r), and includes a nurse ‘‘(C) is pursuing initiatives to encourage patible with State or Federal administrative mid-wife and a nurse practitioner. the adoption of certified EHR technology to ‘‘(C) The term ‘hospital-based’ means, with management systems. ‘‘(6)(A) In no case shall the payments de- promote health care quality and the ex- respect to an eligible professional, a profes- scribed in paragraph (1), with respect to a change of health care information under this sional (such as a pathologist, anesthesiol- hospital, exceed in the aggregate the product title, subject to applicable laws and regula- ogist, or emergency physician) who furnishes of— tions governing such exchange. substantially all of the individual’s profes- ‘‘(i) the overall hospital EHR amount for ‘‘(10) The Secretary shall periodically sub- sional services in a hospital setting (whether the hospital computed under subparagraph mit reports to the Committee on Energy and inpatient or outpatient) and through the use Commerce of the House of Representatives (B); and of the facilities and equipment, including and the Committee on Finance of the Senate ‘‘(ii) the Medicaid share for such hospital qualified electronic health records, of the on status, progress, and oversight of pay- computed under subparagraph (C). hospital. ‘‘(B) For purposes of this paragraph, the ments under paragraph (1).’’. (b) IMPLEMENTATION FUNDING.—In addition ‘‘(4)(A) The term ‘allowable costs’ means, overall hospital EHR amount, with respect to funds otherwise available, out of any with respect to certified EHR technology of to a hospital, is the sum of the applicable funds in the Treasury not otherwise appro- a Medicaid provider, costs of such tech- amounts specified in section 1886(n)(2)(A) for priated, there are appropriated to the Sec- nology (and support services including main- such hospital for the first 4 payment years retary of Health and Human Services for the tenance and training that is for, or is nec- (as estimated by the Secretary) determined Center for Medicare & Medicaid Services essary for the adoption and operation of, as if the Medicare share specified in clause Program Management Account, $40,000,000 such technology) as determined by the Sec- (ii) of such section were 1. The Secretary for each of fiscal years 2009 through 2015 and retary to be reasonable. shall publish in the Federal Register the $20,000,000 for each succeeding fiscal year ‘‘(B) The term ‘net allowable costs’ means overall hospital EHR amount for each hos- through fiscal year 2018, which shall be avail- allowable costs reduced by any payment that pital eligible for payments under this sub- able for purposes of carrying out the provi- is made to the Medicaid provider involved section. In computing amounts under clause sions of (and the amendments made by) this from any other source that is directly attrib- (ii) for payment years after the first pay- part. Amounts appropriated under this sub- utable to payment for certified EHR tech- ment year, the Secretary shall assume that section for a fiscal year shall be available nology or services described in subparagraph in subsequent payment years discharges in- until expended. (A). crease at the average annual rate of growth (c) HHS REPORT ON IMPLEMENTATION OF DE- ‘‘(C) In no case shall— of the most recent three years for which dis- TAILED PROCESS TO ASSURE NO DUPLICATION ‘‘(i) the aggregate allowable costs under charge data are available. OF FUNDING.—Not later than July 1, 2012, the this subsection (covering one or more years) ‘‘(C) The Medicaid share computed under Secretary of Health and Human Services with respect to a Medicaid provider de- this subparagraph, for a hospital for a period shall submit to Congress a report on the es- scribed in paragraph (2)(A) for purchase and specified by the Secretary, shall be cal- tablishment and implementation of the de- initial implementation of certified EHR culated in the same manner as the Medicare tailed process under section 1903(t)(7) of the technology (and services described in sub- share under section 1886(n)(2)(D) for such a Social Security Act, as added by subsection paragraph (A)) exceed $25,000 or include costs hospital and period, except that there shall (a), together with recommendations for such over a period of longer than 5 years; be substituted for the numerator under legislation and administrative action as the ‘‘(ii) for costs not described in clause (i) re- clause (i) of such section the amount that is Secretary determines appropriate. lating to the operation, maintenance, or use equal to the number of inpatient-bed-days of certified EHR technology, the annual al- (as established by the Secretary) which are TITLE V—STATE FISCAL RELIEF lowable costs under this subsection with re- attributable to individuals who are receiving SEC. 5000. PURPOSES; TABLE OF CONTENTS. spect to such a Medicaid provider for costs medical assistance under this title and who (a) PURPOSES.—The purposes of this title not described in clause (i) for any year ex- are not described in section 1886(n)(2)(D)(i). are as follows: ceed $10,000; In computing inpatient-bed-days under the (1) To provide fiscal relief to States in a ‘‘(iii) payment described in paragraph (1) previous sentence, the Secretary shall take period of economic downturn. for costs described in clause (ii) be made into account inpatient-bed-days attributable (2) To protect and maintain State Medicaid with respect to such a Medicaid provider to inpatient-bed-days that are paid for indi- programs during a period of economic down- over a period of more than 5 years; viduals enrolled in a Medicaid managed care turn, including by helping to avert cuts to ‘‘(iv) the aggregate allowable costs under plan (under section 1903(m) or section 1932). provider payment rates and benefits or serv- this subsection with respect to such a Med- ‘‘(7) With respect to health care providers ices, and to prevent constrictions of income icaid provider for all costs exceed $75,000; or other than hospitals, the Secretary shall es- eligibility requirements for such programs, ‘‘(v) the allowable costs, whether for pur- tablish and implement a detailed process to but not to promote increases in such require- chase and initial implementation, mainte- ensure coordination of the different pro- ments. nance, or otherwise, for a Medicaid provider grams for payment of such health care pro- (b) TABLE OF CONTENTS.—The table of con- described in paragraph (2)(B)(iii) exceed such viders for adoption or use of health informa- tents for this title is as follows: aggregate or annual limitation as the Sec- tion technology (including certified EHR TITLE V—STATE FISCAL RELIEF retary shall establish, based on an amount technology), as well as payments for such Sec. 5000. Purposes; table of contents.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00101 Fmt 0637 Sfmt 0655 E:\CR\FM\A30JA6.050 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1204 CONGRESSIONAL RECORD — SENATE January 30, 2009 Sec. 5001. Temporary increase of Medicaid month period for which data are available described in section 2105(b) of such Act (42 FMAP. for the State or District to the lowest aver- U.S.C. 1397ee(b)); or Sec. 5002. Extension and update of special age monthly unemployment rate, seasonally (5) any payments under title XIX of such rule for increase of Medicaid adjusted, for the State or District for any 3- Act that are attributable to expenditures for DSH allotments for low DSH consecutive-month period preceding that pe- medical assistance provided to individuals States. riod and beginning on or after January 1, made eligible under a State plan under title Sec. 5003. Payment of Medicare liability to 2006 (based on the most recently available XIX of the Social Security Act (including States as a result of the Special monthly publications of the Bureau of Labor under any waiver under such title or under Disability Workload Project. Statistics of the Department of Labor). section 1115 of such Act (42 U.S.C. 1315)) be- Sec. 5004. Funding for the Department of (ii) An increase of at least 2.5 percentage cause of income standards (expressed as a Health and Human Services Of- points, but less than 3.5 percentage points, in percentage of the poverty line) for eligibility fice of the Inspector General. the average monthly unemployment rate, for medical assistance that are higher than Sec. 5005. GAO study and report regarding seasonally adjusted, for the State or District the income standards (as so expressed) for State needs during periods of (as so determined). such eligibility as in effect on July 1, 2008. national economic downturn. (iii) An increase of at least 3.5 percentage (f) STATE INELIGIBILITY.— SEC. 5001. TEMPORARY INCREASE OF MEDICAID points for the State or District, in the aver- (1) MAINTENANCE OF ELIGIBILITY REQUIRE- FMAP. age monthly unemployment rate, seasonally MENTS.— (a) PERMITTING MAINTENANCE OF FMAP.— adjusted, for the State or District (as so de- (A) IN GENERAL.—Subject to subparagraphs Subject to subsections (e), (f), and (g), if the termined). (B) and (C), a State is not eligible for an in- FMAP determined without regard to this (B) MAINTENANCE OF STATUS.—If a State crease in its FMAP under subsection (a), (b), section for a State for— qualifies for additional relief under this sub- or (c), or an increase in a cap amount under (1) fiscal year 2009 is less than the FMAP section for a calendar quarter, it shall be subsection (d), if eligibility standards, meth- as so determined for fiscal year 2008, the deemed to have qualified for such relief for odologies, or procedures under its State plan FMAP for the State for fiscal year 2008 shall each subsequent calendar quarter ending be- under title XIX of the Social Security Act be substituted for the State’s FMAP for fis- fore July 1, 2010. (including any waiver under such title or cal year 2009, before the application of this (3) APPLICABLE PERCENT.—For purposes of under section 1115 of such Act (42 U.S.C. section; paragraph (1), the applicable percent is— 1315)) are more restrictive than the eligi- (2) fiscal year 2010 is less than the FMAP (A) 2.5 percent, if the State satisfies the bility standards, methodologies, or proce- as so determined for fiscal year 2008 or fiscal criteria described in paragraph (2)(A)(i) for dures, respectively, under such plan (or waiv- year 2009 (after the application of paragraph the calendar quarter; er) as in effect on July 1, 2008. (1)), the greater of such FMAP for the State (B) 4.5 percent if the State satisfies the cri- (B) STATE REINSTATEMENT OF ELIGIBILITY for fiscal year 2008 or fiscal year 2009 shall be teria described in paragraph (2)(A)(ii) for the PERMITTED.—Subject to subparagraph (C), a substituted for the State’s FMAP for fiscal calendar quarter; and State that has restricted eligibility stand- year 2010, before the application of this sec- (C) 6.5 percent if the State satisfies the cri- ards, methodologies, or procedures under its tion; and teria described in paragraph (2)(A)(iii) for State plan under title XIX of the Social Se- (3) fiscal year 2011 is less than the FMAP the calendar quarter. curity Act (including any waiver under such as so determined for fiscal year 2008, fiscal title or under section 1115 of such Act (42 (4) MAINTENANCE OF HIGHER PERCENTAGE year 2009 (after the application of paragraph U.S.C. 1315)) after July 1, 2008, is no longer REDUCTION FOR PERIOD AFTER LOWER PERCENT- (1)), or fiscal year 2010 (after the application ineligible under subparagraph (A) beginning AGE DEDUCTION WOULD OTHERWISE TAKE EF- of paragraph (2)), the greatest of such FMAP with the first calendar quarter in which the FECT.— for the State for fiscal year 2008, fiscal year State has reinstated eligibility standards, (A) HOLD HARMLESS PERIOD.—If the per- methodologies, or procedures that are no 2009, or fiscal year 2010 shall be substituted centage reduction applied to a State under more restrictive than the eligibility stand- for the State’s FMAP for fiscal year 2011, be- paragraph (3) for any calendar quarter in the ards, methodologies, or procedures, respec- fore the application of this section, but only recession adjustment period beginning on or tively, under such plan (or waiver) as in ef- for the first calendar quarter in fiscal year after January 1, 2009, and ending before July fect on July 1, 2008. 2011. 1, 2010, (determined without regard to this (b) GENERAL 7.6 PERCENTAGE POINT IN- (C) SPECIAL RULES.—A State shall not be paragraph) is less than the percentage reduc- CREASE.—Subject to subsections (e), (f), and ineligible under subparagraph (A)— tion applied for the preceding quarter (as so (g), for each State for calendar quarters dur- (i) for the calendar quarters before July 1, determined), the higher percentage reduc- ing the recession adjustment period (as de- 2009, on the basis of a restriction that was tion shall continue in effect for each subse- fined in subsection (h)(2)) , the FMAP (after applied after July 1, 2008, and before the date quent calendar quarter ending before July 1, the application of subsection (a)) shall be in- of the enactment of this Act, if the State 2010. creased (without regard to any limitation prior to July 1, 2009, has reinstated eligi- (B) NOTICE OF DECREASE IN PERCENTAGE RE- otherwise specified in section 1905(b) of the bility standards, methodologies, or proce- DUCTION.—The Secretary shall notify a State Social Security Act) by 7.6 percentage dures that are no more restrictive than the at least 3 months prior to applying any lower points. eligibility standards, methodologies, or pro- percentage reduction to the State under (c) ADDITIONAL RELIEF BASED ON INCREASE cedures, respectively, under such plan (or paragraph (3). IN UNEMPLOYMENT.— waiver) as in effect on July 1, 2008; or (d) INCREASE IN CAP ON MEDICAID PAYMENTS (1) IN GENERAL.—Subject to subsections (e), (ii) on the basis of a restriction that was TO TERRITORIES.—Subject to subsections (f) (f), and (g), if a State is a qualifying State and (g), with respect to entire fiscal years directed to be made under State law as of under paragraph (2) for a calendar quarter occurring during the recession adjustment July 1, 2008, and would have been in effect as occurring during the recession adjustment period and with respect to fiscal years only of such date, but for a delay in the request period, the FMAP for the State shall be fur- a portion of which occurs during such period for, and approval of, a waiver under section ther increased by the number of percentage (and in proportion to the portion of the fiscal 1115 of such Act with respect to such restric- points equal to the product of the State per- year that occurs during such period), the tion. centage applicable for the State under sec- amounts otherwise determined for Puerto (2) COMPLIANCE WITH PROMPT PAY REQUIRE- tion 1905(b) of the Social Security Act (42 Rico, the Virgin Islands, Guam, the Northern MENTS.—No State shall be eligible for an in- U.S.C. 1396d(b)) after the application of sub- Mariana Islands, and American Samoa under creased FMAP rate as provided under this sections (a) and (b) and the applicable per- subsections (f) and (g) of section 1108 of the section for any claim submitted by a pro- cent determined in paragraph (3) for the cal- Social Security Act (42 6 U.S.C. 1308) shall vider subject to the terms of section endar quarter (or, if greater, for a previous each be increased by 15.2 percent. 1902(a)(37)(A) of the Social Security Act (42 such calendar quarter, subject to paragraph (e) SCOPE OF APPLICATION.—The increases U.S.C. 1396a(a)(37)(A)) during any period in (4)) . in the FMAP for a State under this section which that State has failed to pay claims in (2) QUALIFYING CRITERIA.— shall apply for purposes of title XIX of the accordance with section 1902(a)(37)(A) of such (A) IN GENERAL.—For purposes of para- Social Security Act and shall not apply with Act. Each State shall report to the Sec- graph (1), a State qualifies for additional re- respect to— retary, no later than 30 days following the lief under this subsection for a calendar (1) disproportionate share hospital pay- 1st day of the month, its compliance with quarter occurring during the recession ad- ments described in section 1923 of such Act the requirements of section 1902(a)(37)(A) of justment period if the State is 1 of the 50 (42 U.S.C. 1396r–4); the Social Security Act as they pertain to States or the District of Columbia and the (2) payments under title IV of such Act (42 claims made for covered services during the State satisfies any of the following criteria U.S.C. 601 et seq.) (except that the increases preceding month. for the quarter: under subsections (a) and (b) shall apply to (3) NO WAIVER AUTHORITY.—The Secretary (i) An increase of at least 1.5 percentage payments under part E of title IV of such may not waive the application of this sub- points, but less than 2.5 percentage points, in Act (42 U.S.C. 670 et seq.)); section or subsection (g) under section 1115 the average monthly unemployment rate, (3) payments under title XXI of such Act of the Social Security Act or otherwise. seasonally adjusted, for the State or Dis- (42 U.S.C. 1397aa et seq.); (g) REQUIREMENTS.— trict, as determined by comparing months in (4) any payments under title XIX of such (1) IN GENERAL.—A State may not deposit the most recent previous 3-consecutive Act that are based on the enhanced FMAP or credit the additional Federal funds paid to

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00102 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.050 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1205 the State as a result of this section to any ‘‘(i) fiscal year 2009, shall be the DSH allot- (A) waives the right to file a civil action reserve or rainy day fund maintained by the ment for the State for fiscal year 2008 in- (or to be a party to any action) in any Fed- State. creased by 16 percent; eral or State court in which the relief sought (2) STATE REPORTS.—Each State that is ‘‘(ii) fiscal year 2010, shall be the DSH al- includes a payment from the United States paid additional Federal funds as a result of lotment for the State for fiscal year 2009 in- to the State related to the Medicare liability this section shall, not later than September creased by 16 percent; under title XVIII of the Social Security Act 30, 2011, submit a report to the Secretary, in ‘‘(iii) fiscal year 2011 for the period ending (42 U.S.C. 1395 et seq.) as a result of the Spe- such form and such manner as the Secretary on December 31, 2010, shall be 1⁄4 of the DSH cial Disability Workload project; and shall determine, regarding how the addi- allotment for the State for fiscal year 2010 (B) releases the United States from any tional Federal funds were expended. increased by 16 percent; further claims for reimbursement of State (3) ADDITIONAL REQUIREMENT FOR CERTAIN ‘‘(iv) fiscal year 2011 for the period begin- expenditures as a result of the Special Dis- STATES.—In the case of a State that requires ning on January 1, 2011, and ending on Sep- ability Workload project. political subdivisions within the State to tember 30, 2011, shall be 3⁄4 of the DSH allot- (3) NO INDIVIDUAL STATE CLAIMS DATA RE- contribute toward the non-Federal share of ment that would have been determined under QUIRED.—No State shall be required to sub- expenditures under the State Medicaid plan this subsection for the State for fiscal year mit individual claims evidencing payment required under section 1902(a)(2) of the Social 2011 if this subparagraph had not been en- under the Medicaid program as a condition Security Act (42 U.S.C. 1396a(a)(2)), the State acted; for receiving a payment under this section. is not eligible for an increase in its FMAP ‘‘(v) fiscal year 2012, shall be the DSH al- (4) INELIGIBLE STATES.—No State that is a under subsection (b) or (c), or an increase in lotment that would have been determined party to a civil action in any Federal or a cap amount under subsection (d), if it re- under this subsection for the State for fiscal State court in which the relief sought in- quires that such political subdivisions pay year 2012 if this subparagraph had not been cludes a payment from the United States to for quarters during the recession adjustment enacted; and the State related to the Medicare liability period a greater percentage of the non-Fed- ‘‘(vi) fiscal year 2013 and any subsequent under title XVIII of the Social Security Act eral share of such expenditures, or a greater fiscal year, shall be the DSH allotment for (42 U.S.C. 1395 et seq.) as a result of the Spe- percentage of the non-Federal share of pay- the State for the previous fiscal year subject cial Disability Workload project shall be eli- ments under section 1923, than the respective to an increase for inflation as provided in gible to receive a payment under this section percentage that would have been required by paragraph (3)(A).’’. while such an action is pending or if such an the State under such plan on September 30, SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO action is resolved in favor of the State. 2008, prior to application of this section. STATES AS A RESULT OF THE SPE- (d) DEFINITIONS.—In this section: (h) DEFINITIONS.—In this section, except as CIAL DISABILITY WORKLOAD PROJECT. (1) COMMISSIONER.—The term ‘‘Commis- otherwise provided: sioner’’ means the Commissioner of Social (1) FMAP.—The term ‘‘FMAP’’ means the (a) IN GENERAL.—The Secretary, in con- sultation with the Commissioner, shall work Security. Federal medical assistance percentage, as with each State to reach an agreement, not (2) MEDICAID PROGRAM.—The term ‘‘Med- defined in section 1905(b) of the Social Secu- later than 3 months after the date of enact- icaid program’’ means the program of med- rity Act (42 U.S.C. 1396d(b)), as determined ment of this Act, on the amount of a pay- ical assistance established under title XIX of without regard to this section except as oth- ment for the State related to the Medicare the Social Security Act (42 U.S.C. 1396a et erwise specified. program liability as a result of the Special seq.) and includes medical assistance pro- (2) POVERTY LINE.—The term ‘‘poverty Disability Workload project, subject to the vided under any waiver of that program ap- line’’ has the meaning given such term in requirements of subsection (c). proved under section 1115 or 1915 of such Act section 673(2) of the Community Services (b) PAYMENTS.— (42 U.S.C. 1315, 1396n) or otherwise. Block Grant Act (42 U.S.C. 9902(2)), including (1) DEADLINE FOR MAKING PAYMENTS.—Not (3) MEDICARE PROGRAM.—The term ‘‘Medi- any revision required by such section. later than 30 days after reaching an agree- care program’’ means the program estab- (3) RECESSION ADJUSTMENT PERIOD.—The ment with a State under subsection (a), the lished under title XVIII of the Social Secu- term ‘‘recession adjustment period’’ means Secretary shall pay the State, from the rity Act (42 U.S.C. 1395 et seq.). the period beginning on October 1, 2008, and amounts appropriated under paragraph (2), (4) SECRETARY.—The term ‘‘Secretary’’ ending on December 31, 2010. the payment agreed to for the State. means the Secretary of Health and Human (4) SECRETARY.—The term ‘‘Secretary’’ (2) APPROPRIATION.—Out of any money in Services. means the Secretary of Health and Human the Treasury not otherwise appropriated, (5) SDW CASE.—The term ‘‘SDW case’’ Services. there is appropriated $3,000,000,000 for fiscal means a case in the Special Disability Work- (5) STATE.—The term ‘‘State’’ has the year 2009 for making payments to States load project involving an individual deter- meaning given such term for purposes of under paragraph (1). mined by the Commissioner to have been eli- title XIX of the Social Security Act (42 (3) LIMITATIONS.—In no case may— gible for benefits under title II of the Social U.S.C. 1396 et seq.). (A) the aggregate amount of payments Security Act (42 U.S.C. 401 et seq.) for a pe- (i) SUNSET.—This section shall not apply to made by the Secretary to States under para- riod during which such benefits were not pro- items and services furnished after the end of graph (1) exceed $3,000,000,000; or vided to the individual and who was, during the recession adjustment period. (B) any payments be provided by the Sec- all or part of such period, enrolled in a State SEC. 5002. EXTENSION AND UPDATE OF SPECIAL retary under this section after the first day Medicaid program. RULE FOR INCREASE OF MEDICAID of the first month that begins 4 months after (6) SPECIAL DISABILITY WORKLOAD DSH ALLOTMENTS FOR LOW DSH the date of enactment of this Act. PROJECT.—The term ‘‘Special Disability STATES. (c) REQUIREMENTS.—The requirements of Workload project’’ means the project de- Section 1923(f)(5) of the Social Security this subsection are the following: scribed in the 2008 Annual Report of the Act (42 U.S.C. 1396r–4(f)(5)) is amended— (1) FEDERAL DATA USED TO DETERMINE Board of Trustees of the Federal Old-Age and (1) in subparagraph (B)— AMOUNT OF PAYMENTS.—The amount of the Survivors Insurance and Federal Disability (A) in the subparagraph heading, by strik- payment under subsection (a) for each State Insurance Trust Funds, H.R. Doc. No. 110-104, ing ‘‘YEAR 2004 AND SUBSEQUENT FISCAL is determined on the basis of the most recent 110th Cong. (2008). YEARS’’ and inserting ‘‘YEARS 2004 THROUGH Federal data available, including the use of (7) STATE.—The term ‘‘State’’ means each 2008’’; proxies and reasonable estimates as nec- of the 50 States and the District of Columbia. (B) in clause (i), by inserting ‘‘and’’ after essary, for determining expeditiously the the semicolon; amount of the payment that shall be made SEC. 5004. FUNDING FOR THE DEPARTMENT OF (C) in clause (ii), by striking ‘‘; and’’ and to each State that enters into an agreement HEALTH AND HUMAN SERVICES OF- FICE OF THE INSPECTOR GENERAL. inserting a period; and under this section. The payment method- (D) by striking clause (iii); and ology shall consider the following factors: For purposes of ensuring the proper ex- (2) by adding at the end the following sub- (A) The number of SDW cases found to penditure of Federal funds under title XIX of paragraph: have been eligible for benefits under the the Social Security Act (42 U.S.C. 1396 et ‘‘(C) FOR FISCAL YEAR 2009 AND SUBSEQUENT Medicare program and the month of the ini- seq.), there is appropriated to the Office of FISCAL YEARS.—In the case of a State in tial Medicare program eligibility for such the Inspector General of the Department of which the total expenditures under the State cases. Health and Human Services, out of any plan (including Federal and State shares) for (B) The applicable non-Federal share of ex- money in the Treasury not otherwise appro- disproportionate share hospital adjustments penditures made by a State under the Med- priated and without further appropriation, under this section for fiscal year 2006, as re- icaid program during the time period for $31,250,000 for the recession adjustment pe- ported to the Administrator of the Centers SDW cases. for Medicare & Medicaid Services as of Au- (C) Such other factors as the Secretary and riod (as defined in section 5001(h)(3)). gust 31, 2009, is greater than 0 but less than the Commissioner, in consultation with the Amounts appropriated under this section 3 percent of the State’s total amount of ex- States, determine appropriate. shall remain available for expenditure until penditures under the State plan for medical (2) CONDITIONS FOR PAYMENTS.—A State expended and shall be in addition to any assistance during the fiscal year, the DSH al- shall not receive a payment under this sec- other amounts appropriated or made avail- lotment for the State with respect to— tion unless the State— able to such Office for such purposes.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00103 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.050 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1206 CONGRESSIONAL RECORD — SENATE January 30, 2009 SEC. 5005. GAO STUDY AND REPORT REGARDING or other provision, the reference shall be consid- TITLE III—REDUCING BARRIERS TO STATE NEEDS DURING PERIODS OF ered to be made to that section or other provi- PROVIDING PREMIUM ASSISTANCE NATIONAL ECONOMIC DOWNTURN. sion of the Social Security Act. Subtitle A—Additional State Option for (a) IN GENERAL.—The Comptroller General (c) REFERENCES TO CHIP; MEDICAID; SEC- Providing Premium Assistance of the United States shall study the period of RETARY.—In this Act: Sec. 301. Additional State option for providing national economic downturn in effect on the (1) CHIP.—The term ‘‘CHIP’’ means the State premium assistance. date of enactment of this Act, as well as pre- Children’s Health Insurance Program estab- Sec. 302. Outreach, education, and enrollment vious periods of national economic downturn lished under title XXI of the Social Security Act assistance. since 1974, for the purpose of developing rec- (42 U.S.C. 1397aa et seq.). ommendations for addressing the needs of (2) MEDICAID.—The term ‘‘Medicaid’’ means Subtitle B—Coordinating Premium Assistance States during such periods. As part of such the program for medical assistance established With Private Coverage analysis, the Comptroller General shall under title XIX of the Social Security Act (42 Sec. 311. Special enrollment period under group study the past and projected effects of tem- U.S.C. 1396 et seq.). health plans in case of termi- porary increases in the Federal medical as- (3) SECRETARY.—The term ‘‘Secretary’’ means nation of Medicaid or CHIP cov- sistance percentage under the Medicaid pro- the Secretary of Health and Human Services. erage or eligibility for assistance gram with respect to such periods. (d) TABLE OF CONTENTS.—The table of con- in purchase of employment-based (b) REPORT.—Not later than April 1, 2011, tents of this Act is as follows: coverage; coordination of cov- the Comptroller General of the United States Sec. 1. Short title; amendments to Social Secu- erage. shall submit a report to the appropriate rity Act; references; table of con- TITLE IV—STRENGTHENING QUALITY OF committees of Congress on the results of the tents. CARE AND HEALTH OUTCOMES study conducted under paragraph (1). Such Sec. 2. Purpose. Sec. 401. Child health quality improvement ac- report shall include the following: Sec. 3. General effective date; exception for tivities for children enrolled in (1) Such recommendations as the Comp- State legislation; contingent effec- Medicaid or CHIP. troller General determines appropriate for tive date; reliance on law. Sec. 402. Improved availability of public infor- modifying the national economic downturn TITLE I—FINANCING mation regarding enrollment of assistance formula for temporary adjust- Subtitle A—Funding children in CHIP and Medicaid. ment of the Federal medical assistance per- Sec. 403. Application of certain managed care centage under Medicaid (also referred to as a Sec. 101. Extension of CHIP. quality safeguards to CHIP. ‘‘countercyclical FMAP’’) described in GAO Sec. 102. Allotments for States and territories report number GAO–07–97 to improve the ef- for fiscal years 2009 through 2013. TITLE V—IMPROVING ACCESS TO fectiveness of the application of such per- Sec. 103. Child Enrollment Contingency Fund. BENEFITS Sec. 104. CHIP performance bonus payment to centage in addressing the needs of States Sec. 501. Dental benefits. offset additional enrollment costs during periods of national economic down- Sec. 502. Mental health parity in CHIP plans. resulting from enrollment and re- turn, including recommendations for— Sec. 503. Application of prospective payment tention efforts. (A) improvements to the factors that system for services provided by Sec. 105. Two-year initial availability of CHIP would begin and end the application of such Federally-qualified health centers allotments. percentage; and rural health clinics. Sec. 106. Redistribution of unused allotments. (B) how the determination of the amount Sec. 504. Premium grace period. Sec. 107. Option for qualifying States to receive Sec. 505. Clarification of coverage of services of such percentage could be adjusted to ad- the enhanced portion of the CHIP dress State and regional economic variations provided through school-based matching rate for Medicaid cov- health centers. during such periods; and erage of certain children. (C) how the determination of the amount Sec. 506. Medicaid and CHIP Payment and Ac- Sec. 108. One-time appropriation. cess Commission. of such percentage could be adjusted to be Sec. 109. Improving funding for the territories more responsive to actual Medicaid costs in- under CHIP and Medicaid. TITLE VI—PROGRAM INTEGRITY AND curred by States during such periods. OTHER MISCELLANEOUS PROVISIONS (2) An analysis of the impact on States Subtitle B—Focus on Low-Income Children and Pregnant Women Subtitle A—Program Integrity and Data during such periods of— Collection (A) declines in private health benefits cov- Sec. 111. State option to cover low-income preg- Sec. 601. Payment error rate measurement erage; nant women under CHIP through (‘‘PERM’’). (B) declines in State revenues; and a State plan amendment. Sec. 602. Improving data collection. (C) caseload maintenance and growth Sec. 112. Phase-out of coverage for nonpreg- nant childless adults under CHIP; Sec. 603. Updated Federal evaluation of CHIP. under Medicaid, the State Children’s Health Sec. 604. Access to records for IG and GAO au- Insurance Program, or any other publicly- conditions for coverage of par- ents. dits and evaluations. funded programs to provide health benefits Sec. 605. No Federal funding for illegal aliens; coverage for State residents. Sec. 113. Elimination of counting Medicaid child presumptive eligibility costs disallowance for unauthorized ex- (3) Identification of, and recommendations penditures. for addressing, the effects on States of any against title XXI allotment. other specific economic indicators that the Sec. 114. Limitation on matching rate for States Subtitle B—Miscellaneous Health Provisions Comptroller General determines appropriate. that propose to cover children Sec. 611. Deficit Reduction Act technical correc- with effective family income that tions. f exceeds 300 percent of the poverty Sec. 612. References to title XXI. CHILDREN’S HEALTH INSURANCE line. Sec. 613. Prohibiting initiation of new health PROGRAM REAUTHORIZATION Sec. 115. State authority under Medicaid. opportunity account demonstra- ACT OF 2009 TITLE II—OUTREACH AND ENROLLMENT tion programs. Subtitle A—Outreach and Enrollment Activities Sec. 614. Adjustment in computation of Med- On Thursday, January 29, 2009, the icaid FMAP to disregard an ex- Sec. 201. Grants and enhanced administrative traordinary employer pension Senate passed H.R. 2, as amended, as funding for outreach and enroll- contribution. follows: ment. Sec. 615. Clarification treatment of regional H.R. 2 Sec. 202. Increased outreach and enrollment of medical center. Indians. Resolved, That the bill from the House of Sec. 616. Extension of Medicaid DSH allotments Sec. 203. State option to rely on findings from Representatives (H.R. 2) entitled ‘‘An Act to for Tennessee and Hawaii. an Express Lane agency to con- amend title XXI of the Social Security Act Sec. 617. GAO report on Medicaid managed duct simplified eligibility deter- to extend and improve the Children’s Health care payment rates. minations. Insurance Program, and for other purposes.’’, Subtitle C—Other Provisions do pass with the following amendment: Subtitle B—Reducing Barriers to Enrollment Sec. 621. Outreach regarding health insurance Strike all after the enacting clause and in- Sec. 211. Verification of declaration of citizen- options available to children. sert the following: ship or nationality for purposes of Sec. 622. Sense of the Senate regarding access eligibility for Medicaid and CHIP. SECTION 1. SHORT TITLE; AMENDMENTS TO SO- to affordable and meaningful CIAL SECURITY ACT; REFERENCES; Sec. 212. Reducing administrative barriers to health insurance coverage. TABLE OF CONTENTS. enrollment. (a) SHORT TITLE.—This Act may be cited as Sec. 213. Model of Interstate coordinated enroll- TITLE VII—REVENUE PROVISIONS the ‘‘Children’s Health Insurance Program Re- ment and coverage process. Sec. 701. Increase in excise tax rate on tobacco authorization Act of 2009’’. Sec. 214. Permitting States to ensure coverage products. (b) AMENDMENTS TO SOCIAL SECURITY ACT.— without a 5-year delay of certain Sec. 702. Administrative improvements. Except as otherwise specifically provided, when- children and pregnant women Sec. 703. Treasury study concerning magnitude ever in this Act an amendment is expressed in under the Medicaid program and of tobacco smuggling in the terms of an amendment to or repeal of a section CHIP. United States.

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Sec. 704. Time for payment of corporate esti- ‘‘(13) for fiscal year 2010, $12,520,000,000; ‘‘(ii) REBASING IN FISCAL YEAR 2011.—For fiscal mated taxes. ‘‘(14) for fiscal year 2011, $13,459,000,000; year 2011, the allotment of the State is equal to SEC. 2. PURPOSE. ‘‘(15) for fiscal year 2012, $14,982,000,000; and the Federal payments to the State that are at- It is the purpose of this Act to provide depend- ‘‘(16) for fiscal year 2013, for purposes of mak- tributable to (and countable towards) the total able and stable funding for children’s health in- ing 2 semi-annual allotments— amount of allotments available under this sec- ‘‘(A) $2,850,000,000 for the period beginning on surance under titles XXI and XIX of the Social tion to the State in fiscal year 2010 (including October 1, 2012, and ending on March 31, 2013, Security Act in order to enroll all six million un- payments made to the State under subsection and insured children who are eligible, but not en- (n) for fiscal year 2010 as well as amounts redis- ‘‘(B) $2,850,000,000 for the period beginning on rolled, for coverage today through such titles. tributed to the State in fiscal year 2010), multi- April 1, 2013, and ending on September 30, plied by the allotment increase factor under SEC. 3. GENERAL EFFECTIVE DATE; EXCEPTION 2013.’’. FOR STATE LEGISLATION; CONTIN- paragraph (5) for fiscal year 2011. GENT EFFECTIVE DATE; RELIANCE SEC. 102. ALLOTMENTS FOR STATES AND TERRI- ‘‘(iii) GROWTH FACTOR UPDATE FOR FISCAL TORIES FOR FISCAL YEARS 2009 ON LAW. YEAR 2012.—For fiscal year 2012, the allotment of THROUGH 2013. (a) GENERAL EFFECTIVE DATE.—Unless other- the State is equal to the sum of— Section 2104 (42 U.S.C. 1397dd) is amended— wise provided in this Act, subject to subsections ‘‘(I) the amount of the State allotment under (1) in subsection (b)(1), by striking ‘‘sub- (b) through (d), this Act (and the amendments clause (ii) for fiscal year 2011; and section (d)’’ and inserting ‘‘subsections (d) and made by this Act) shall take effect on April 1, ‘‘(II) the amount of any payments made to the (m)’’; State under subsection (n) for fiscal year 2011, 2009, and shall apply to child health assistance (2) in subsection (c)(1), by striking ‘‘subsection multiplied by the allotment increase factor and medical assistance provided on or after that (d)’’ and inserting ‘‘subsections (d) and (m)(4)’’; under paragraph (5) for fiscal year 2012. date. and ‘‘(3) FOR FISCAL YEAR 2013.— (b) EXCEPTION FOR STATE LEGISLATION.—In (3) by adding at the end the following new ‘‘(A) FIRST HALF.—Subject to paragraphs (4) the case of a State plan under title XIX or State subsection: and (6), from the amount made available under child health plan under XXI of the Social Secu- ‘‘(m) ALLOTMENTS FOR FISCAL YEARS 2009 subparagraph (A) of paragraph (16) of sub- rity Act, which the Secretary of Health and THROUGH 2013.— Human Services determines requires State legis- ‘‘(1) FOR FISCAL YEAR 2009.— section (a) for the semi-annual period described lation in order for the respective plan to meet ‘‘(A) FOR THE 50 STATES AND THE DISTRICT OF in such paragraph, increased by the amount of one or more additional requirements imposed by COLUMBIA.—Subject to the succeeding provisions the appropriation for such period under section amendments made by this Act, the respective of this paragraph and paragraph (4), the Sec- 108 of the Children’s Health Insurance Program plan shall not be regarded as failing to comply retary shall allot for fiscal year 2009 from the Reauthorization Act of 2009, the Secretary shall with the requirements of such title solely on the amount made available under subsection (a)(12), compute a State allotment for each State (in- basis of its failure to meet such an additional re- to each of the 50 States and the District of Co- cluding the District of Columbia and each com- quirement before the first day of the first cal- lumbia 110 percent of the highest of the fol- monwealth and territory) for such semi-annual endar quarter beginning after the close of the lowing amounts for such State or District: period in an amount equal to the first half ratio first regular session of the State legislature that ‘‘(i) The total Federal payments to the State (described in subparagraph (D)) of the amount begins after the date of enactment of this Act. under this title for fiscal year 2008, multiplied by described in subparagraph (C). For purposes of the previous sentence, in the the allotment increase factor determined under ‘‘(B) SECOND HALF.—Subject to paragraphs (4) case of a State that has a 2-year legislative ses- paragraph (5) for fiscal year 2009. and (6), from the amount made available under sion, each year of the session shall be considered ‘‘(ii) The amount allotted to the State for fis- subparagraph (B) of paragraph (16) of sub- to be a separate regular session of the State leg- cal year 2008 under subsection (b), multiplied by section (a) for the semi-annual period described islature. the allotment increase factor determined under in such paragraph, the Secretary shall compute (c) COORDINATION OF CHIP FUNDING FOR FIS- paragraph (5) for fiscal year 2009. a State allotment for each State (including the CAL YEAR 2009.—Notwithstanding any other ‘‘(iii) The projected total Federal payments to District of Columbia and each commonwealth provision of law, insofar as funds have been ap- the State under this title for fiscal year 2009, as and territory) for such semi-annual period in an propriated under section 2104(a)(11), 2104(k), or determined on the basis of the February 2009 amount equal to the amount made available 2104(l) of the Social Security Act, as amended by projections certified by the State to the Sec- under such subparagraph, multiplied by the section 201 of Public Law 110–173, to provide al- retary by not later than March 31, 2009. ratio of— lotments to States under CHIP for fiscal year ‘‘(B) FOR THE COMMONWEALTHS AND TERRI- ‘‘(i) the amount of the allotment to such State 2009— TORIES.—Subject to the succeeding provisions of under subparagraph (A); to (1) any amounts that are so appropriated that this paragraph and paragraph (4), the Secretary ‘‘(ii) the total of the amount of all of the allot- are not so allotted and obligated before April 1, shall allot for fiscal year 2009 from the amount ments made available under such subparagraph. 2009 are rescinded; and made available under subsection (a)(12) to each ‘‘(C) FULL YEAR AMOUNT BASED ON REBASED (2) any amount provided for CHIP allotments of the commonwealths and territories described AMOUNT.—The amount described in this sub- to a State under this Act (and the amendments in subsection (c)(3) an amount equal to the paragraph for a State is equal to the Federal made by this Act) for such fiscal year shall be highest amount of Federal payments to the com- payments to the State that are attributable to reduced by the amount of such appropriations monwealth or territory under this title for any (and countable towards) the total amount of al- so allotted and obligated before such date. fiscal year occurring during the period of fiscal lotments available under this section to the (d) RELIANCE ON LAW.—With respect to years 1999 through 2008, multiplied by the allot- State in fiscal year 2012 (including payments amendments made by this Act (other than title ment increase factor determined under para- made to the State under subsection (n) for fiscal VII) that become effective as of a date— graph (5) for fiscal year 2009, except that sub- year 2012 as well as amounts redistributed to the (1) such amendments are effective as of such paragraph (B) thereof shall be applied by sub- State in fiscal year 2012), multiplied by the al- date whether or not regulations implementing stituting ‘the United States’ for ‘the State’. lotment increase factor under paragraph (5) for such amendments have been issued; and ‘‘(C) ADJUSTMENT FOR QUALIFYING STATES.— fiscal year 2013. (2) Federal financial participation for medical In the case of a qualifying State described in ‘‘(D) FIRST HALF RATIO.—The first half ratio assistance or child health assistance furnished paragraph (2) of section 2105(g), the Secretary described in this subparagraph is the ratio of— under title XIX or XXI, respectively, of the So- shall permit the State to submit a revised projec- ‘‘(i) the sum of— cial Security Act on or after such date by a tion described in subparagraph (A)(iii) in order ‘‘(I) the amount made available under sub- State in good faith reliance on such amend- to take into account changes in such projections section (a)(16)(A); and ments before the date of promulgation of final attributable to the application of paragraph (4) ‘‘(II) the amount of the appropriation for such regulations, if any, to carry out such amend- of such section. period under section 108 of the Children’s ments (or before the date of guidance, if any, re- ‘‘(2) FOR FISCAL YEARS 2010 THROUGH 2012.— Health Insurance Program Reauthorization Act garding the implementation of such amend- ‘‘(A) IN GENERAL.—Subject to paragraphs (4) of 2009; to ments) shall not be denied on the basis of the and (6), from the amount made available under ‘‘(ii) the sum of the— State’s failure to comply with such regulations paragraphs (13) through (15) of subsection (a) ‘‘(I) amount described in clause (i); and or guidance. for each of fiscal years 2010 through 2012, re- ‘‘(II) the amount made available under sub- section (a)(16)(B). TITLE I—FINANCING spectively, the Secretary shall compute a State allotment for each State (including the District ‘‘(4) PRORATION RULE.—If, after the applica- Subtitle A—Funding of Columbia and each commonwealth and terri- tion of this subsection without regard to this SEC. 101. EXTENSION OF CHIP. tory) for each such fiscal year as follows: paragraph, the sum of the allotments deter- Section 2104(a) (42 U.S.C. 1397dd(a)) is amend- ‘‘(i) GROWTH FACTOR UPDATE FOR FISCAL YEAR mined under paragraph (1), (2), or (3) for a fis- ed— 2010.—For fiscal year 2010, the allotment of the cal year (or, in the case of fiscal year 2013, for (1) in paragraph (10), by striking ‘‘and’’ at State is equal to the sum of— a semi-annual period in such fiscal year) ex- the end; ‘‘(I) the amount of the State allotment under ceeds the amount available under subsection (a) (2) by amending paragraph (11), by striking paragraph (1) for fiscal year 2009; and for such fiscal year or period, the Secretary ‘‘each of fiscal years 2008 and 2009’’ and insert- ‘‘(II) the amount of any payments made to the shall reduce each allotment for any State under ing ‘‘fiscal year 2008’’; and State under subsection (k), (l), or (n) for fiscal such paragraph for such fiscal year or period on (3) by adding at the end the following new year 2009, a proportional basis. paragraphs: multiplied by the allotment increase factor ‘‘(5) ALLOTMENT INCREASE FACTOR.—The al- ‘‘(12) for fiscal year 2009, $10,562,000,000; under paragraph (5) for fiscal year 2010. lotment increase factor under this paragraph for

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00105 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.022 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1208 CONGRESSIONAL RECORD — SENATE January 30, 2009 a fiscal year is equal to the product of the fol- essary for making payments to eligible States for plan for the targeted low-income children count- lowing: such fiscal year or period, but not in excess of ed in the average monthly caseload for purposes ‘‘(A) PER CAPITA HEALTH CARE GROWTH FAC- the aggregate cap described in subparagraph of this paragraph during fiscal year 2008, in- TOR.—1 plus the percentage increase in the pro- (B). creased by the annual percentage increase in jected per capita amount of National Health Ex- ‘‘(B) AGGREGATE CAP.—The total amount the projected per capita amount of National penditures from the calendar year in which the available for payment from the Fund for each of Health Expenditures (as estimated by the Sec- previous fiscal year ends to the calendar year in fiscal years 2010 through 2012 (and for each of retary) for 2009; or which the fiscal year involved ends, as most re- the semi-annual allotment periods for fiscal year ‘‘(ii) for a subsequent fiscal year (or semi-an- cently published by the Secretary before the be- 2013), taking into account deposits made under nual period occurring in a fiscal year) is equal ginning of the fiscal year. subparagraph (C), shall not exceed 20 percent of to the projected per capita expenditures under ‘‘(B) CHILD POPULATION GROWTH FACTOR.—1 the amount made available under subsection (a) such plan for the previous fiscal year (as deter- plus the percentage increase (if any) in the pop- for the fiscal year or period. mined under clause (i) or this clause) increased ulation of children in the State from July 1 in ‘‘(C) INVESTMENT OF FUND.—The Secretary of by the annual percentage increase in the pro- the previous fiscal year to July 1 in the fiscal the Treasury shall invest, in interest bearing se- jected per capita amount of National Health Ex- year involved, as determined by the Secretary curities of the United States, such currently penditures (as estimated by the Secretary) for based on the most recent published estimates of available portions of the Fund as are not imme- the year in which such subsequent fiscal year the Bureau of the Census before the beginning diately required for payments from the Fund. ends. of the fiscal year involved, plus 1 percentage The income derived from these investments con- ‘‘(D) PRORATION RULE.—If the amounts avail- point. stitutes a part of the Fund. able for payment from the Fund for a fiscal year ‘‘(6) INCREASE IN ALLOTMENT TO ACCOUNT FOR ‘‘(D) AVAILABILITY OF EXCESS FUNDS FOR PER- or period are less than the total amount of pay- APPROVED PROGRAM EXPANSIONS.—In the case of FORMANCE BONUSES.—Any amounts in excess of ments determined under subparagraph (A) for one of the 50 States or the District of Columbia the aggregate cap described in subparagraph (B) the fiscal year or period, the amount to be paid that— for a fiscal year or period shall be made avail- under such subparagraph to each eligible State ‘‘(A) has submitted to the Secretary, and has able for purposes of carrying out section shall be reduced proportionally. approved by the Secretary, a State plan amend- 2105(a)(3) for any succeeding fiscal year and the ‘‘(E) TIMELY PAYMENT; RECONCILIATION.— ment or waiver request relating to an expansion Secretary of the Treasury shall reduce the Payment under this paragraph for a fiscal year of eligibility for children or benefits under this amount in the Fund by the amount so made or period shall be made before the end of the fis- title that becomes effective for a fiscal year (be- available. cal year or period based upon the most recent ginning with fiscal year 2010 and ending with ‘‘(3) CHILD ENROLLMENT CONTINGENCY FUND data for expenditures and enrollment and the fiscal year 2013); and PAYMENTS.— provisions of subsection (e) of section 2105 shall ‘‘(A) IN GENERAL.—If a State’s expenditures ‘‘(B) has submitted to the Secretary, before apply to payments under this subsection in the under this title in fiscal year 2009, fiscal year the August 31 preceding the beginning of the fis- same manner as they apply to payments under 2010, fiscal year 2011, fiscal year 2012, or a semi- cal year, a request for an expansion allotment such section. annual allotment period for fiscal year 2013, ex- adjustment under this paragraph for such fiscal ‘‘(F) CONTINUED REPORTING.—For purposes of ceed the total amount of allotments available year that specifies— this paragraph and subsection (f), the State under this section to the State in the fiscal year ‘‘(i) the additional expenditures that are at- shall submit to the Secretary the State’s pro- or period (determined without regard to any re- tributable to the eligibility or benefit expansion jected Federal expenditures, even if the amount distribution it receives under subsection (f) that provided under the amendment or waiver de- of such expenditures exceeds the total amount of is available for expenditure during such fiscal scribed in subparagraph (A), as certified by the allotments available to the State in such fiscal year or period, but including any carryover State and submitted to the Secretary by not year or period. from a previous fiscal year) and if the average later than August 31 preceding the beginning of ‘‘(G) APPLICATION TO COMMONWEALTHS AND monthly unduplicated number of children en- the fiscal year; and TERRITORIES.—No payment shall be made under rolled under the State plan under this title (in- ‘‘(ii) the extent to which such additional ex- this paragraph to a commonwealth or territory cluding children receiving health care coverage penditures are projected to exceed the allotment described in subsection (c)(3) until such time as through funds under this title pursuant to a of the State or District for the year, the Secretary determines that there are in effect waiver under section 1115) during such fiscal subject to paragraph (4), the amount of the al- methods, satisfactory to the Secretary, for the year or period exceeds its target average number lotment of the State or District under this sub- collection and reporting of reliable data regard- of such enrollees (as determined under subpara- section for such fiscal year shall be increased by ing the enrollment of children described in sub- graph (B)) for that fiscal year or period, subject the excess amount described in subparagraph paragraphs (A) and (B) in order to accurately to subparagraph (D), the Secretary shall pay to (B)(i). A State or District may only obtain an determine the commonwealth’s or territory’s eli- the State from the Fund an amount equal to the increase under this paragraph for an allotment gibility for, and amount of payment, under this product of— for fiscal year 2010 or fiscal year 2012. ‘‘(i) the amount by which such average paragraph.’’. ‘‘(7) AVAILABILITY OF AMOUNTS FOR SEMI-AN- monthly caseload exceeds such target number of SEC. 104. CHIP PERFORMANCE BONUS PAYMENT NUAL PERIODS IN FISCAL YEAR 2013.—Each semi- enrollees; and TO OFFSET ADDITIONAL ENROLL- annual allotment made under paragraph (3) for ‘‘(ii) the projected per capita expenditures MENT COSTS RESULTING FROM EN- a period in fiscal year 2013 shall remain avail- under the State child health plan (as determined ROLLMENT AND RETENTION EF- FORTS. able for expenditure under this title for periods under subparagraph (C) for the fiscal year), Section 2105(a) (42 U.S.C. 1397ee(a)) is amend- after the end of such fiscal year in the same multiplied by the enhanced FMAP (as defined ed by adding at the end the following new para- manner as if the allotment had been made avail- in section 2105(b)) for the State and fiscal year graphs: able for the entire fiscal year.’’. involved (or in which the period occurs). SEC. 103. CHILD ENROLLMENT CONTINGENCY ‘‘(B) TARGET AVERAGE NUMBER OF CHILD EN- ‘‘(3) PERFORMANCE BONUS PAYMENT TO OFFSET FUND. ROLLEES.—In this paragraph, the target average ADDITIONAL MEDICAID AND CHIP CHILD ENROLL- Section 2104 (42 U.S.C. 1397dd), as amended by number of child enrollees for a State— MENT COSTS RESULTING FROM ENROLLMENT AND section 102, is amended by adding at the end the ‘‘(i) for fiscal year 2009 is equal to the monthly RETENTION EFFORTS.— following new subsection: average unduplicated number of children en- ‘‘(A) IN GENERAL.—In addition to the pay- ‘‘(n) CHILD ENROLLMENT CONTINGENCY rolled in the State child health plan under this ments made under paragraph (1), for each fiscal FUND.— title (including such children receiving health year (beginning with fiscal year 2009 and ending ‘‘(1) ESTABLISHMENT.—There is hereby estab- care coverage through funds under this title with fiscal year 2013), the Secretary shall pay lished in the Treasury of the United States a pursuant to a waiver under section 1115) during from amounts made available under subpara- fund which shall be known as the ‘Child Enroll- fiscal year 2008 increased by the population graph (E), to each State that meets the condi- ment Contingency Fund’ (in this subsection re- growth for children in that State for the year tion under paragraph (4) for the fiscal year, an ferred to as the ‘Fund’). Amounts in the Fund ending on June 30, 2007 (as estimated by the Bu- amount equal to the amount described in sub- shall be available without further appropria- reau of the Census) plus 1 percentage point; or paragraph (B) for the State and fiscal year. The tions for payments under this subsection. ‘‘(ii) for a subsequent fiscal year (or semi-an- payment under this paragraph shall be made, to ‘‘(2) DEPOSITS INTO FUND.— nual period occurring in a fiscal year) is equal a State for a fiscal year, as a single payment not ‘‘(A) INITIAL AND SUBSEQUENT APPROPRIA- to the target average number of child enrollees later than the last day of the first calendar TIONS.—Subject to subparagraphs (B) and (D), for the State for the previous fiscal year in- quarter of the following fiscal year. out of any money in the Treasury of the United creased by the child population growth factor ‘‘(B) AMOUNT FOR ABOVE BASELINE MEDICAID States not otherwise appropriated, there are ap- described in subsection (m)(5)(B) for the State CHILD ENROLLMENT COSTS.—Subject to subpara- propriated to the Fund— for the prior fiscal year. graph (E), the amount described in this sub- ‘‘(i) for fiscal year 2009, an amount equal to 20 ‘‘(C) PROJECTED PER CAPITA EXPENDITURES.— paragraph for a State for a fiscal year is equal percent of the amount made available under For purposes of subparagraph (A)(ii), the pro- to the sum of the following amounts: paragraph (12) of subsection (a) for the fiscal jected per capita expenditures under a State ‘‘(i) FIRST TIER ABOVE BASELINE MEDICAID EN- year; and child health plan— ROLLEES.—An amount equal to the number of ‘‘(ii) for each of fiscal years 2010 through 2012 ‘‘(i) for fiscal year 2009 is equal to the average first tier above baseline child enrollees (as deter- (and for each of the semi-annual allotment peri- per capita expenditures (including both State mined under subparagraph (C)(i)) under title ods for fiscal year 2013), such sums as are nec- and Federal financial participation) under such XIX for the State and fiscal year, multiplied by

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15 percent of the projected per capita State Med- which the fiscal year involved begins to the suc- ‘‘(iii) PROPORTIONAL REDUCTION.—If the sum icaid expenditures (as determined under sub- ceeding calendar year (as estimated by the Bu- of the amounts otherwise payable under this paragraph (D)) for the State and fiscal year reau of the Census) plus 2 percentage points. paragraph for a fiscal year exceeds the amount under title XIX. ‘‘(D) PROJECTED PER CAPITA STATE MEDICAID available for the fiscal year under this subpara- ‘‘(ii) SECOND TIER ABOVE BASELINE MEDICAID EXPENDITURES.—For purposes of subparagraph graph, the amount to be paid under this para- ENROLLEES.—An amount equal to the number of (B), the projected per capita State Medicaid ex- graph to each State shall be reduced proportion- second tier above baseline child enrollees (as de- penditures for a State and fiscal year under title ally. termined under subparagraph (C)(ii)) under title XIX is equal to the average per capita expendi- ‘‘(F) QUALIFYING CHILDREN DEFINED.— XIX for the State and fiscal year, multiplied by tures (including both State and Federal finan- ‘‘(i) IN GENERAL.—For purposes of this sub- 62.5 percent of the projected per capita State cial participation) for children under the State section, subject to clauses (ii) and (iii), the term Medicaid expenditures (as determined under plan under such title, including under waivers ‘qualifying children’ means children who meet subparagraph (D)) for the State and fiscal year but not including such children eligible for as- the eligibility criteria (including income, cat- under title XIX. sistance by virtue of the receipt of benefits egorical eligibility, age, and immigration status ‘‘(C) NUMBER OF FIRST AND SECOND TIER under title XVI, for the most recent fiscal year criteria) in effect as of July 1, 2008, for enroll- ABOVE BASELINE CHILD ENROLLEES; BASELINE for which actual data are available (as deter- ment under title XIX, taking into account cri- NUMBER OF CHILD ENROLLEES.—For purposes of mined by the Secretary), increased (for each teria applied as of such date under title XIX this paragraph: subsequent fiscal year up to and including the pursuant to a waiver under section 1115. ‘‘(i) FIRST TIER ABOVE BASELINE CHILD EN- fiscal year involved) by the annual percentage ‘‘(ii) LIMITATION.—A child described in clause ROLLEES.—The number of first tier above base- increase in per capita amount of National (i) who is provided medical assistance during a line child enrollees for a State for a fiscal year Health Expenditures (as estimated by the Sec- presumptive eligibility period under section under title XIX is equal to the number (if any, retary) for the calendar year in which the re- 1920A shall be considered to be a ‘qualifying as determined by the Secretary) by which— spective subsequent fiscal year ends and multi- child’ only if the child is determined to be eligi- ‘‘(I) the monthly average unduplicated num- plied by a State matching percentage equal to ble for medical assistance under title XIX. ber of qualifying children (as defined in sub- 100 percent minus the Federal medical assist- ‘‘(iii) EXCLUSION.—Such term does not include paragraph (F)) enrolled during the fiscal year ance percentage (as defined in section 1905(b)) any children for whom the State has made an under the State plan under title XIX, respec- for the fiscal year involved. election to provide medical assistance under tively; exceeds ‘‘(E) AMOUNTS AVAILABLE FOR PAYMENTS.— paragraph (4) of section 1903(v). ‘‘(II) the baseline number of enrollees de- ‘‘(i) INITIAL APPROPRIATION.—Out of any ‘‘(G) APPLICATION TO COMMONWEALTHS AND scribed in clause (iii) for the State and fiscal money in the Treasury not otherwise appro- TERRITORIES.—The provisions of subparagraph year under title XIX, respectively; priated, there are appropriated $3,225,000,000 for (G) of section 2104(n)(3) shall apply with respect fiscal year 2009 for making payments under this but not to exceed 10 percent of the baseline to payment under this paragraph in the same paragraph, to be available until expended. number of enrollees described in subclause (II). manner as such provisions apply to payment ‘‘(ii) TRANSFERS.—Notwithstanding any other ‘‘(ii) SECOND TIER ABOVE BASELINE CHILD EN- under such section. provision of this title, the following amounts ROLLEES.—The number of second tier above ‘‘(H) APPLICATION TO STATES THAT IMPLEMENT shall also be available, without fiscal year limi- baseline child enrollees for a State for a fiscal A MEDICAID EXPANSION FOR CHILDREN AFTER tation, for making payments under this para- year under title XIX is equal to the number (if FISCAL YEAR 2008.—In the case of a State that graph: provides coverage under section 115 of the Chil- any, as determined by the Secretary) by which— ‘‘(I) UNOBLIGATED NATIONAL ALLOTMENT.— dren’s Health Insurance Program Reauthoriza- ‘‘(I) the monthly average unduplicated num- ‘‘(aa) FISCAL YEARS 2009 THROUGH 2012.—As of ber of qualifying children (as defined in sub- December 31 of fiscal year 2009, and as of De- tion Act of 2009 for any fiscal year after fiscal paragraph (F)) enrolled during the fiscal year cember 31 of each succeeding fiscal year through year 2008— under title XIX as described in clause (i)(I); ex- fiscal year 2012, the portion, if any, of the ‘‘(i) any child enrolled in the State plan under ceeds amount appropriated under subsection (a) for title XIX through the application of such an ‘‘(II) the sum of the baseline number of child such fiscal year that is unobligated for allot- election shall be disregarded from the deter- enrollees described in clause (iii) for the State ment to a State under subsection (m) for such mination for the State of the monthly average and fiscal year under title XIX, as described in fiscal year or set aside under subsection (a)(3) or unduplicated number of qualifying children en- clause (i)(II), and the maximum number of first (b)(2) of section 2111 for such fiscal year. rolled in such plan during the first 3 fiscal years tier above baseline child enrollees for the State ‘‘(bb) FIRST HALF OF FISCAL YEAR 2013.—As of in which such an election is in effect; and and fiscal year under title XIX, as determined December 31 of fiscal year 2013, the portion, if ‘‘(ii) in determining the baseline number of under clause (i). any, of the sum of the amounts appropriated child enrollees for the State for any fiscal year ‘‘(iii) BASELINE NUMBER OF CHILD ENROLL- under subsection (a)(16)(A) and under section subsequent to such first 3 fiscal years, the base- EES.—Subject to subparagraph (H), the baseline 108 of the Children’s Health Insurance Reau- line number of child enrollees for the State number of child enrollees for a State under title thorization Act of 2009 for the period beginning under title XIX for the third of such fiscal years XIX— on October 1, 2012, and ending on March 31, shall be the monthly average unduplicated num- ‘‘(I) for fiscal year 2009 is equal to the month- 2013, that is unobligated for allotment to a State ber of qualifying children enrolled in the State ly average unduplicated number of qualifying under subsection (m) for such fiscal year or set plan under title XIX for such third fiscal year. children enrolled in the State plan under title aside under subsection (b)(2) of section 2111 for ‘‘(4) ENROLLMENT AND RETENTION PROVISIONS XIX during fiscal year 2007 increased by the such fiscal year. FOR CHILDREN.—For purposes of paragraph population growth for children in that State ‘‘(cc) SECOND HALF OF FISCAL YEAR 2013.—As of (3)(A), a State meets the condition of this para- from 2007 to 2008 (as estimated by the Bureau of June 30 of fiscal year 2013, the portion, if any, graph for a fiscal year if it is implementing at the Census) plus 4 percentage points, and fur- of the amount appropriated under subsection least 5 of the following enrollment and retention ther increased by the population growth for (a)(16)(B) for the period beginning on April 1, provisions (treating each subparagraph as a children in that State from 2008 to 2009 (as esti- 2013, and ending on September 30, 2013, that is separate enrollment and retention provision) mated by the Bureau of the Census) plus 4 per- unobligated for allotment to a State under sub- throughout the entire fiscal year: centage points; section (m) for such fiscal year or set aside ‘‘(A) CONTINUOUS ELIGIBILITY.—The State has ‘‘(II) for each of fiscal years 2010, 2011, and under subsection (b)(2) of section 2111 for such elected the option of continuous eligibility for a 2012, is equal to the baseline number of child en- fiscal year. full 12 months for all children described in sec- rollees for the State for the previous fiscal year ‘‘(II) UNEXPENDED ALLOTMENTS NOT USED FOR tion 1902(e)(12) under title XIX under 19 years under title XIX, increased by the population REDISTRIBUTION.—As of November 15 of each of of age, as well as applying such policy under its growth for children in that State from the cal- fiscal years 2010 through 2013, the total amount State child health plan under this title. endar year in which the respective fiscal year of allotments made to States under section 2104 ‘‘(B) LIBERALIZATION OF ASSET REQUIRE- begins to the succeeding calendar year (as esti- for the second preceding fiscal year (third pre- MENTS.—The State meets the requirement speci- mated by the Bureau of the Census) plus 3.5 ceding fiscal year in the case of the fiscal year fied in either of the following clauses: percentage points; 2006, 2007, and 2008 allotments) that is not ex- ‘‘(i) ELIMINATION OF ASSET TEST.—The State ‘‘(III) for each of fiscal years 2013, 2014, and pended or redistributed under section 2104(f) does not apply any asset or resource test for eli- 2015, is equal to the baseline number of child en- during the period in which such allotments are gibility for children under title XIX or this title. rollees for the State for the previous fiscal year available for obligation. ‘‘(ii) ADMINISTRATIVE VERIFICATION OF AS- under title XIX, increased by the population ‘‘(III) EXCESS CHILD ENROLLMENT CONTIN- SETS.—The State— growth for children in that State from the cal- GENCY FUNDS.—As of October 1 of each of fiscal ‘‘(I) permits a parent or caretaker relative endar year in which the respective fiscal year years 2010 through 2013, any amount in excess who is applying on behalf of a child for medical begins to the succeeding calendar year (as esti- of the aggregate cap applicable to the Child En- assistance under title XIX or child health assist- mated by the Bureau of the Census) plus 3 per- rollment Contingency Fund for the fiscal year ance under this title to declare and certify by centage points; and under section 2104(n). signature under penalty of perjury information ‘‘(IV) for a subsequent fiscal year is equal to ‘‘(IV) UNEXPENDED TRANSITIONAL COVERAGE relating to family assets for purposes of deter- the baseline number of child enrollees for the BLOCK GRANT FOR NONPREGNANT CHILDLESS mining and redetermining financial eligibility; State for the previous fiscal year under title ADULTS.—As of October 1, 2011, any amounts set and XIX, increased by the population growth for aside under section 2111(a)(3) that are not ex- ‘‘(II) takes steps to verify assets through children in that State from the calendar year in pended by September 30, 2011. means other than by requiring documentation

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00107 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.022 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1210 CONGRESSIONAL RECORD — SENATE January 30, 2009 from parents and applicants except in indi- (B) by striking ‘‘States that have fully ex- subsections (e) and (m) of such section) an vidual cases of discrepancies or where otherwise pended the amount of their allotments under amount each quarter equal to the additional justified. this section.’’ and inserting ‘‘States that the amount that would have been paid to the State ‘‘(C) ELIMINATION OF IN-PERSON INTERVIEW Secretary determines with respect to the fiscal under title XIX with respect to such expendi- REQUIREMENT.—The State does not require an year for which unused allotments are available tures if the enhanced FMAP (as determined application of a child for medical assistance for redistribution under this subsection, are under subsection (b)) had been substituted for under title XIX (or for child health assistance shortfall States described in paragraph (2) for the Federal medical assistance percentage (as under this title), including an application for such fiscal year, but not to exceed the amount defined in section 1905(b)). renewal of such assistance, to be made in person of the shortfall described in paragraph (2)(A) ‘‘(B) EXPENDITURES DESCRIBED.—For purposes nor does the State require a face-to-face inter- for each such State (as may be adjusted under of subparagraph (A), the expenditures described view, unless there are discrepancies or indi- paragraph (2)(C)).’’; and in this subparagraph are expenditures made vidual circumstances justifying an in-person ap- (C) by adding at the end the following new after the date of the enactment of this para- plication or face-to-face interview. paragraph: graph and during the period in which funds are ‘‘(D) USE OF JOINT APPLICATION FOR MEDICAID ‘‘(2) SHORTFALL STATES DESCRIBED.— available to the qualifying State for use under AND CHIP.—The application form and supple- ‘‘(A) IN GENERAL.—For purposes of paragraph subparagraph (A), for the provision of medical mental forms (if any) and information (1), with respect to a fiscal year, a shortfall assistance to individuals residing in the State verification process is the same for purposes of State described in this subparagraph is a State who are eligible for medical assistance under the establishing and renewing eligibility for chil- with a State child health plan approved under State plan under title XIX or under a waiver of dren for medical assistance under title XIX and this title for which the Secretary estimates on such plan and who have not attained age 19 (or, child health assistance under this title. the basis of the most recent data available to the if a State has so elected under the State plan ‘‘(E) AUTOMATIC RENEWAL (USE OF ADMINIS- Secretary, that the projected expenditures under under title XIX, age 20 or 21), and whose family TRATIVE RENEWAL).— such plan for the State for the fiscal year will income equals or exceeds 133 percent of the pov- ‘‘(i) IN GENERAL.—The State provides, in the exceed the sum of— erty line but does not exceed the Medicaid appli- case of renewal of a child’s eligibility for med- ‘‘(i) the amount of the State’s allotments for cable income level.’’. ical assistance under title XIX or child health any preceding fiscal years that remains avail- (b) REPEAL OF LIMITATION ON AVAILABILITY assistance under this title, a pre-printed form able for expenditure and that will not be ex- OF FISCAL YEAR 2009 ALLOTMENTS.—Paragraph completed by the State based on the information pended by the end of the immediately preceding (2) of section 201(b) of the Medicare, Medicaid, available to the State and notice to the parent fiscal year; and SCHIP Extension Act of 2007 (Public Law or caretaker relative of the child that eligibility ‘‘(ii) the amount (if any) of the child enroll- 110–173) is repealed. of the child will be renewed and continued ment contingency fund payment under sub- SEC. 108. ONE-TIME APPROPRIATION. based on such information unless the State is section (n); and There is appropriated to the Secretary, out of provided other information. Nothing in this ‘‘(iii) the amount of the State’s allotment for any money in the Treasury not otherwise appro- clause shall be construed as preventing a State the fiscal year. priated, $11,706,000,000 to accompany the allot- from verifying, through electronic and other ‘‘(B) PRORATION RULE.—If the amounts avail- ment made for the period beginning on October means, the information so provided. able for redistribution under paragraph (1) for a 1, 2012, and ending on March 31, 2013, under ‘‘(ii) SATISFACTION THROUGH DEMONSTRATED fiscal year are less than the total amounts of the section 2104(a)(16)(A) of the Social Security Act USE OF EX PARTE PROCESS.—A State shall be estimated shortfalls determined for the year (42 U.S.C. 1397dd(a)(16)(A)) (as added by section treated as satisfying the requirement of clause under subparagraph (A), the amount to be re- 101), to remain available until expended. Such (i) if renewal of eligibility of children under title distributed under such paragraph for each amount shall be used to provide allotments to XIX or this title is determined without any re- shortfall State shall be reduced proportionally. States under paragraph (3) of section 2104(m) of quirement for an in-person interview, unless ‘‘(C) RETROSPECTIVE ADJUSTMENT.—The Sec- the Social Security Act (42 U.S.C. 1397dd(i)), as sufficient information is not in the State’s pos- retary may adjust the estimates and determina- added by section 102, for the first 6 months of session and cannot be acquired from other tions made under paragraph (1) and this para- fiscal year 2013 in the same manner as allot- sources (including other State agencies) without graph with respect to a fiscal year as necessary ments are provided under subsection (a)(16)(A) the participation of the applicant or the appli- on the basis of the amounts reported by States of such section 2104 and subject to the same cant’s parent or caretaker relative. not later than November 30 of the succeeding terms and conditions as apply to the allotments ‘‘(F) PRESUMPTIVE ELIGIBILITY FOR CHIL- fiscal year, as approved by the Secretary.’’. provided from such subsection (a)(16)(A). (2) EFFECTIVE DATE.—The amendments made DREN.—The State is implementing section 1920A SEC. 109. IMPROVING FUNDING FOR THE TERRI- under title XIX as well as, pursuant to section by paragraph (1) shall apply to redistribution of TORIES UNDER CHIP AND MEDICAID. allotments made for fiscal year 2007 and subse- 2107(e)(1), under this title. Section 1108(g) (42 U.S.C. 1308(g)) is amended quent fiscal years. ‘‘(G) EXPRESS LANE.—The State is imple- by adding at the end the following new para- (b) REDISTRIBUTION OF UNUSED ALLOTMENTS menting the option described in section graph: FOR FISCAL YEAR 2006.—Section 2104(k) (42 1902(e)(13) under title XIX as well as, pursuant ‘‘(4) EXCLUSION OF CERTAIN EXPENDITURES U.S.C. 1397dd(k)) is amended— to section 2107(e)(1), under this title. FROM PAYMENT LIMITS.—With respect to fiscal (1) in the subsection heading, by striking ‘‘(H) PREMIUM ASSISTANCE SUBSIDIES.—The years beginning with fiscal year 2009, if Puerto ‘‘THE FIRST 2 QUARTERS OF’’; State is implementing the option of providing Rico, the Virgin Islands, Guam, the Northern (2) in paragraph (1), by striking ‘‘the first 2 premium assistance subsidies under section Mariana Islands, or American Samoa qualify quarters of’’; and 2105(c)(10) or section 1906A.’’. for a payment under subparagraph (A)(i), (B), (3) in paragraph (6)— SEC. 105. TWO-YEAR INITIAL AVAILABILITY OF or (F) of section 1903(a)(3) for a calendar quar- CHIP ALLOTMENTS. (A) by striking ‘‘the first 2 quarters of’’; and (B) by striking ‘‘March 31’’ and inserting ter of such fiscal year, the payment shall not be Section 2104(e) (42 U.S.C. 1397dd(e)) is amend- ‘‘September 30’’. taken into account in applying subsection (f) ed to read as follows: (as increased in accordance with paragraphs SEC. 107. OPTION FOR QUALIFYING STATES TO ‘‘(e) AVAILABILITY OF AMOUNTS ALLOTTED.— (1), (2), and (3) of this subsection) to such com- RECEIVE THE ENHANCED PORTION N GENERAL ‘‘(1) I .—Except as provided in para- OF THE CHIP MATCHING RATE FOR monwealth or territory for such fiscal year.’’. graph (2), amounts allotted to a State pursuant MEDICAID COVERAGE OF CERTAIN Subtitle B—Focus on Low-Income Children to this section— CHILDREN. and Pregnant Women ‘‘(A) for each of fiscal years 1998 through (a) IN GENERAL.—Section 2105(g) (42 U.S.C. 2008, shall remain available for expenditure by SEC. 111. STATE OPTION TO COVER LOW-INCOME 1397ee(g)) is amended— PREGNANT WOMEN UNDER CHIP the State through the end of the second suc- (1) in paragraph (1)(A), as amended by section THROUGH A STATE PLAN AMEND- ceeding fiscal year; and 201(b)(1) of Public Law 110–173— MENT. ‘‘(B) for fiscal year 2009 and each fiscal year (A) by inserting ‘‘subject to paragraph (4),’’ (a) IN GENERAL.—Title XXI (42 U.S.C. 1397aa thereafter, shall remain available for expendi- after ‘‘Notwithstanding any other provision of et seq.), as amended by section 112(a), is amend- ture by the State through the end of the suc- law,’’; and ed by adding at the end the following new sec- ceeding fiscal year. (B) by striking ‘‘2008, or 2009’’ and inserting tion: ‘‘(2) AVAILABILITY OF AMOUNTS REDISTRIB- ‘‘or 2008’’; and ‘‘SEC. 2112. OPTIONAL COVERAGE OF TARGETED UTED.—Amounts redistributed to a State under (2) by adding at the end the following new LOW-INCOME PREGNANT WOMEN subsection (f) shall be available for expenditure paragraph: THROUGH A STATE PLAN AMEND- by the State through the end of the fiscal year ‘‘(4) OPTION FOR ALLOTMENTS FOR FISCAL MENT. in which they are redistributed.’’. YEARS 2009 THROUGH 2013.— ‘‘(a) IN GENERAL.—Subject to the succeeding SEC. 106. REDISTRIBUTION OF UNUSED ALLOT- ‘‘(A) PAYMENT OF ENHANCED PORTION OF provisions of this section, a State may elect MENTS. MATCHING RATE FOR CERTAIN EXPENDITURES.—In through an amendment to its State child health (a) BEGINNING WITH FISCAL YEAR 2007.— the case of expenditures described in subpara- plan under section 2102 to provide pregnancy- (1) IN GENERAL.—Section 2104(f) (42 U.S.C. graph (B), a qualifying State (as defined in related assistance under such plan for targeted 1397dd(f)) is amended— paragraph (2)) may elect to be paid from the low-income pregnant women. (A) by striking ‘‘The Secretary’’ and inserting State’s allotment made under section 2104 for ‘‘(b) CONDITIONS.—A State may only elect the the following: any of fiscal years 2009 through 2013 (insofar as option under subsection (a) if the following con- ‘‘(1) IN GENERAL.—The Secretary’’; the allotment is available to the State under ditions are satisfied:

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‘‘(1) MINIMUM INCOME ELIGIBILITY LEVELS FOR ‘‘(B) whose family income exceeds 185 percent (B) in clause (ii), by striking the period at the PREGNANT WOMEN AND CHILDREN.—The State (or, if higher, the percent applied under sub- end and inserting ‘‘; and’’; and has established an income eligibility level— section (b)(1)(A)) of the poverty line applicable (C) by adding at the end the following new ‘‘(A) for pregnant women under subsection to a family of the size involved, but does not ex- clause: (a)(10)(A)(i)(III), (a)(10)(A)(i)(IV), or (l)(1)(A) of ceed the income eligibility level established ‘‘(iii) may not apply a waiting period (includ- section 1902 that is at least 185 percent (or such under the State child health plan under this ing a waiting period to carry out paragraph higher percent as the State has in effect with re- title for a targeted low-income child; and (3)(C)) in the case of a targeted low-income gard to pregnant women under this title) of the ‘‘(C) who satisfies the requirements of para- pregnant woman provided pregnancy-related as- poverty line applicable to a family of the size in- graphs (1)(A), (1)(C), (2), and (3) of section sistance under section 2112.’’. volved, but in no case lower than the percent in 2110(b) in the same manner as a child applying SEC. 112. PHASE-OUT OF COVERAGE FOR NON- effect under any such subsection as of July 1, for child health assistance would have to satisfy PREGNANT CHILDLESS ADULTS 2008; and such requirements. UNDER CHIP; CONDITIONS FOR COV- ‘‘(B) for children under 19 years of age under ‘‘(e) AUTOMATIC ENROLLMENT FOR CHILDREN ERAGE OF PARENTS. this title (or title XIX) that is at least 200 per- BORN TO WOMEN RECEIVING PREGNANCY-RE- (a) PHASE-OUT RULES.— cent of the poverty line applicable to a family of LATED ASSISTANCE.—If a child is born to a tar- (1) IN GENERAL.—Title XXI (42 U.S.C. 1397aa the size involved. geted low-income pregnant woman who was re- et seq.) is amended by adding at the end the fol- ‘‘(2) NO CHIP INCOME ELIGIBILITY LEVEL FOR ceiving pregnancy-related assistance under this lowing new section: PREGNANT WOMEN LOWER THAN THE STATE’S section on the date of the child’s birth, the child ‘‘SEC. 2111. PHASE-OUT OF COVERAGE FOR NON- MEDICAID LEVEL.—The State does not apply an shall be deemed to have applied for child health PREGNANT CHILDLESS ADULTS; effective income level for pregnant women under assistance under the State child health plan and CONDITIONS FOR COVERAGE OF the State plan amendment that is lower than the to have been found eligible for such assistance PARENTS. effective income level (expressed as a percent of under such plan or to have applied for medical ‘‘(a) TERMINATION OF COVERAGE FOR NON- the poverty line and considering applicable in- assistance under title XIX and to have been PREGNANT CHILDLESS ADULTS.— come disregards) specified under subsection found eligible for such assistance under such ‘‘(1) NO NEW CHIP WAIVERS; AUTOMATIC EXTEN- (a)(10)(A)(i)(III), (a)(10)(A)(i)(IV), or (l)(1)(A) of title, as appropriate, on the date of such birth SIONS AT STATE OPTION THROUGH 2009.—Notwith- section 1902, on the date of enactment of this and to remain eligible for such assistance until standing section 1115 or any other provision of paragraph to be eligible for medical assistance the child attains 1 year of age. During the pe- this title, except as provided in this subsection— ‘‘(A) the Secretary shall not on or after the as a pregnant woman. riod in which a child is deemed under the pre- date of the enactment of the Children’s Health ‘‘(3) NO COVERAGE FOR HIGHER INCOME PREG- ceding sentence to be eligible for child health or Insurance Program Reauthorization Act of 2009, NANT WOMEN WITHOUT COVERING LOWER INCOME medical assistance, the child health or medical approve or renew a waiver, experimental, pilot, PREGNANT WOMEN.—The State does not provide assistance eligibility identification number of or demonstration project that would allow funds coverage for pregnant women with higher fam- the mother shall also serve as the identification made available under this title to be used to pro- ily income without covering pregnant women number of the child, and all claims shall be sub- vide child health assistance or other health ben- with a lower family income. mitted and paid under such number (unless the efits coverage to a nonpregnant childless adult; ‘‘(4) APPLICATION OF REQUIREMENTS FOR COV- State issues a separate identification number for and ERAGE OF TARGETED LOW-INCOME CHILDREN.— the child before such period expires). ‘‘(B) notwithstanding the terms and condi- The State provides pregnancy-related assistance ‘‘(f) STATES PROVIDING ASSISTANCE THROUGH tions of an applicable existing waiver, the provi- for targeted low-income pregnant women in the OTHER OPTIONS.— same manner, and subject to the same require- ‘‘(1) CONTINUATION OF OTHER OPTIONS FOR sions of paragraph (2) shall apply for purposes ments, as the State provides child health assist- PROVIDING ASSISTANCE.—The option to provide of any period beginning on or after January 1, ance for targeted low-income children under the assistance in accordance with the preceding 2010, in determining the period to which the State child health plan, and in addition to pro- subsections of this section shall not limit any waiver applies, the individuals eligible to be cov- viding child health assistance for such women. other option for a State to provide— ered by the waiver, and the amount of the Fed- ‘‘(5) NO PREEXISTING CONDITION EXCLUSION OR ‘‘(A) child health assistance through the ap- eral payment under this title. WAITING PERIOD.—The State does not apply any plication of sections 457.10, 457.350(b)(2), ‘‘(2) TERMINATION OF CHIP COVERAGE UNDER exclusion of benefits for pregnancy-related as- 457.622(c)(5), and 457.626(a)(3) of title 42, Code APPLICABLE EXISTING WAIVERS AT THE END OF sistance based on any preexisting condition or of Federal Regulations (as in effect after the 2009.— any waiting period (including any waiting pe- final rule adopted by the Secretary and set forth ‘‘(A) IN GENERAL.—No funds shall be available riod imposed to carry out section 2102(b)(3)(C)) at 67 Fed. Reg. 61956–61974 (October 2, 2002)), or under this title for child health assistance or for receipt of such assistance. ‘‘(B) pregnancy-related services through the other health benefits coverage that is provided ‘‘(6) APPLICATION OF COST-SHARING PROTEC- application of any waiver authority (as in effect to a nonpregnant childless adult under an ap- TION.—The State provides pregnancy-related as- on June 1, 2008). plicable existing waiver after December 31, 2009. sistance to a targeted low-income woman con- ‘‘(2) CLARIFICATION OF AUTHORITY TO PROVIDE ‘‘(B) EXTENSION UPON STATE REQUEST.—If an sistent with the cost-sharing protections under POSTPARTUM SERVICES.—Any State that provides applicable existing waiver described in subpara- section 2103(e) and applies the limitation on child health assistance under any authority de- graph (A) would otherwise expire before Janu- total annual aggregate cost sharing imposed scribed in paragraph (1) may continue to pro- ary 1, 2010, notwithstanding the requirements of under paragraph (3)(B) of such section to the vide such assistance, as well as postpartum serv- subsections (e) and (f) of section 1115, a State family of such a woman. ices, through the end of the month in which the may submit, not later than September 30, 2009, a ‘‘(7) NO WAITING LIST FOR CHILDREN.—The 60-day period (beginning on the last day of the request to the Secretary for an extension of the State does not impose, with respect to the enroll- pregnancy) ends, in the same manner as such waiver. The Secretary shall approve a request ment under the State child health plan of tar- assistance and postpartum services would be for an extension of an applicable existing waiver geted low-income children during the quarter, provided if provided under the State plan under submitted pursuant to this subparagraph, but any enrollment cap or other numerical limita- title XIX, but only if the mother would other- only through December 31, 2009. tion on enrollment, any waiting list, any proce- wise satisfy the eligibility requirements that ‘‘(C) APPLICATION OF ENHANCED FMAP.—The dures designed to delay the consideration of ap- apply under the State child health plan (other enhanced FMAP determined under section plications for enrollment, or similar limitation than with respect to age) during such period. 2105(b) shall apply to expenditures under an ap- with respect to enrollment. ‘‘(3) NO INFERENCE.—Nothing in this sub- plicable existing waiver for the provision of ‘‘(c) OPTION TO PROVIDE PRESUMPTIVE ELIGI- section shall be construed— child health assistance or other health benefits BILITY.—A State that elects the option under ‘‘(A) to infer congressional intent regarding coverage to a nonpregnant childless adult dur- subsection (a) and satisfies the conditions de- the legality or illegality of the content of the ing the period beginning on the date of the en- scribed in subsection (b) may elect to apply sec- sections specified in paragraph (1)(A); or actment of this subsection and ending on De- tion 1920 (relating to presumptive eligibility for ‘‘(B) to modify the authority to provide preg- cember 31, 2009. pregnant women) to the State child health plan nancy-related services under a waiver specified ‘‘(3) STATE OPTION TO APPLY FOR MEDICAID in the same manner as such section applies to in paragraph (1)(B).’’. WAIVER TO CONTINUE COVERAGE FOR NONPREG- the State plan under title XIX. (b) ADDITIONAL CONFORMING AMENDMENTS.— NANT CHILDLESS ADULTS.— ‘‘(d) DEFINITIONS.—For purposes of this sec- (1) NO COST SHARING FOR PREGNANCY-RELATED ‘‘(A) IN GENERAL.—Each State for which cov- tion: BENEFITS.—Section 2103(e)(2) (42 U.S.C. erage under an applicable existing waiver is ter- ‘‘(1) PREGNANCY-RELATED ASSISTANCE.—The 1397cc(e)(2)) is amended— minated under paragraph (2)(A) may submit, term ‘pregnancy-related assistance’ has the (A) in the heading, by inserting ‘‘OR PREG- not later than September 30, 2009, an applica- meaning given the term ‘child health assistance’ NANCY-RELATED ASSISTANCE’’ after ‘‘PRE- tion to the Secretary for a waiver under section in section 2110(a) with respect to an individual VENTIVE SERVICES’’; and 1115 of the State plan under title XIX to provide during the period described in paragraph (2)(A). (B) by inserting before the period at the end medical assistance to a nonpregnant childless ‘‘(2) TARGETED LOW-INCOME PREGNANT the following: ‘‘or for pregnancy-related assist- adult whose coverage is so terminated (in this WOMAN.—The term ‘targeted low-income preg- ance’’. subsection referred to as a ‘Medicaid nonpreg- nant woman’ means an individual— (2) NO WAITING PERIOD.—Section 2102(b)(1)(B) nant childless adults waiver’). ‘‘(A) during pregnancy and through the end (42 U.S.C. 1397bb(b)(1)(B)) is amended— ‘‘(B) DEADLINE FOR APPROVAL.—The Sec- of the month in which the 60-day period (begin- (A) in clause (i), by striking ‘‘, and’’ at the retary shall make a decision to approve or deny ning on the last day of her pregnancy) ends; end and inserting a semicolon; an application for a Medicaid nonpregnant

VerDate Nov 24 2008 03:10 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00109 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.022 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1212 CONGRESSIONAL RECORD — SENATE January 30, 2009 childless adults waiver submitted under sub- subparagraph (A), the Secretary shall set aside ‘‘(i) was awarded a grant under section 2113 paragraph (A) within 90 days of the date of the for the State for each such fiscal year an for fiscal year 2011; submission of the application. If no decision has amount equal to the Federal share of 110 per- ‘‘(ii) implemented 1 or more of the enrollment been made by the Secretary as of December 31, cent of the State’s projected expenditures under and retention provisions described in section 2009, on the application of a State for a Med- the applicable existing waiver for providing 2105(a)(4) for such fiscal year; or icaid nonpregnant childless adults waiver that child health assistance or health benefits cov- ‘‘(iii) has submitted a specific plan for out- was submitted to the Secretary by September 30, erage to all parents of targeted low-income chil- reach for such fiscal year. 2009, the application shall be deemed approved. dren enrolled under such waiver for the fiscal ‘‘(B) HIGH-PERFORMING STATE.—The State, on ‘‘(C) STANDARD FOR BUDGET NEUTRALITY.— year (as certified by the State and submitted to the basis of the most timely and accurate pub- The budget neutrality requirement applicable the Secretary by not later than August 31 of the lished estimates of the Bureau of the Census, with respect to expenditures for medical assist- preceding fiscal year). In the case of fiscal year ranks in the lowest 1⁄3 of States in terms of the ance under a Medicaid nonpregnant childless 2013, the set aside for any State shall be com- State’s percentage of low-income children with- adults waiver shall— puted separately for each period described in out health insurance. ‘‘(i) in the case of fiscal year 2010, allow ex- subparagraphs (A) and (B) of section 2104(a)(16) ‘‘(C) STATE INCREASING ENROLLMENT OF LOW- penditures for medical assistance under title and any reduction in the allotment for either INCOME CHILDREN.—The State qualified for a XIX for all such adults to not exceed the total such period under section 2104(m)(4) shall be al- performance bonus payment under section amount of payments made to the State under located on a pro rata basis to such set aside. 2105(a)(3)(B) for the most recent fiscal year ap- paragraph (2)(B) for fiscal year 2009, increased ‘‘(ii) PAYMENTS FROM BLOCK GRANT.—The Sec- plicable under such section. by the percentage increase (if any) in the pro- retary shall pay the State from the amount set ‘‘(4) RULES OF CONSTRUCTION.—Nothing in jected nominal per capita amount of National aside under clause (i) for the fiscal year, an this subsection shall be construed as prohibiting Health Expenditures for 2010 over 2009, as most amount for each quarter of such fiscal year a State from submitting an application to the recently published by the Secretary; and equal to the applicable percentage determined Secretary for a waiver under section 1115 of the ‘‘(ii) in the case of any succeeding fiscal year, under clause (iii) or (iv) for expenditures in the State plan under title XIX to provide medical allow such expenditures to not exceed the quarter for providing child health assistance or assistance to a parent of a targeted low-income amount in effect under this subparagraph for other health benefits coverage to a parent of a child that was provided child health assistance the preceding fiscal year, increased by the per- or health benefits coverage under an applicable centage increase (if any) in the projected nomi- targeted low-income child. ‘‘(iii) ENHANCED FMAP ONLY IN FISCAL YEAR existing waiver. nal per capita amount of National Health Ex- ‘‘(c) APPLICABLE EXISTING WAIVER.—For pur- penditures for the calendar year that begins 2012 FOR STATES WITH SIGNIFICANT CHILD OUT- REACH OR THAT ACHIEVE CHILD COVERAGE poses of this section— during the year involved over the preceding cal- ‘‘(1) IN GENERAL.—The term ‘applicable exist- endar year, as most recently published by the BENCHMARKS; FMAP FOR ANY OTHER STATES.— For purposes of clause (ii), the applicable per- ing waiver’ means a waiver, experimental, pilot, Secretary. or demonstration project under section 1115, ‘‘(b) RULES AND CONDITIONS FOR COVERAGE OF centage for any quarter of fiscal year 2012 is grandfathered under section 6102(c)(3) of the PARENTS OF TARGETED LOW-INCOME CHIL- equal to— Deficit Reduction Act of 2005, or otherwise con- DREN.— ‘‘(I) the enhanced FMAP determined under ducted under authority that— ‘‘(1) TWO-YEAR PERIOD; AUTOMATIC EXTENSION section 2105(b) in the case of a State that meets ‘‘(A) would allow funds made available under AT STATE OPTION THROUGH FISCAL YEAR 2011.— the outreach or coverage benchmarks described ‘‘(A) NO NEW CHIP WAIVERS.—Notwithstanding in any of subparagraph (A), (B), or (C) of para- this title to be used to provide child health as- section 1115 or any other provision of this title, graph (3) for fiscal year 2011; or sistance or other health benefits coverage to— except as provided in this subsection— ‘‘(II) the Federal medical assistance percent- ‘‘(i) a parent of a targeted low-income child; ‘‘(i) the Secretary shall not on or after the age (as determined under section 1905(b) with- ‘‘(ii) a nonpregnant childless adult; or date of the enactment of the Children’s Health out regard to clause (4) of such section) in the ‘‘(iii) individuals described in both clauses (i) Insurance Program Reauthorization Act of 2009 case of any other State. and (ii); and approve or renew a waiver, experimental, pilot, ‘‘(iv) AMOUNT OF FEDERAL MATCHING PAYMENT ‘‘(B) was in effect during fiscal year 2009. ‘‘(2) DEFINITIONS.— or demonstration project that would allow funds IN 2013.—For purposes of clause (ii), the applica- made available under this title to be used to pro- ble percentage for any quarter of fiscal year ‘‘(A) PARENT.—The term ‘parent’ includes a vide child health assistance or other health ben- 2013 is equal to— caretaker relative (as such term is used in car- efits coverage to a parent of a targeted low-in- ‘‘(I) the REMAP percentage if— rying out section 1931) and a legal guardian. ‘‘(B) NONPREGNANT CHILDLESS ADULT.—The come child; and ‘‘(aa) the applicable percentage for the State term ‘nonpregnant childless adult’ has the ‘‘(ii) notwithstanding the terms and condi- under clause (iii) was the enhanced FMAP for meaning given such term by section 2107(f).’’. tions of an applicable existing waiver, the provi- fiscal year 2012; and (2) CONFORMING AMENDMENTS.— sions of paragraphs (2) and (3) shall apply for ‘‘(bb) the State met either of the coverage (A) Section 2107(f) (42 U.S.C. 1397gg(f)) is purposes of any fiscal year beginning on or benchmarks described in subparagraph (B) or amended— after October 1, 2011, in determining the period (C) of paragraph (3) for fiscal year 2012; or (i) by striking ‘‘, the Secretary’’ and inserting to which the waiver applies, the individuals eli- ‘‘(II) the Federal medical assistance percent- ‘‘: gible to be covered by the waiver, and the age (as so determined) in the case of any State ‘‘(1) The Secretary’’; amount of the Federal payment under this title. to which subclause (I) does not apply. ‘‘(B) EXTENSION UPON STATE REQUEST.—If an (ii) in the first sentence, by inserting ‘‘or a For purposes of subclause (I), the REMAP per- applicable existing waiver described in subpara- parent (as defined in section 2111(c)(2)(A)), who centage is the percentage which is the sum of graph (A) would otherwise expire before October is not pregnant, of a targeted low-income child’’ such Federal medical assistance percentage and 1, 2011, and the State requests an extension of before the period; a number of percentage points equal to one-half such waiver, the Secretary shall grant such an (iii) by striking the second sentence; and of the difference between such Federal medical extension, but only, subject to paragraph (2)(A), (iv) by adding at the end the following new assistance percentage and such enhanced through September 30, 2011. paragraph: FMAP. ‘‘(C) APPLICATION OF ENHANCED FMAP.—The ‘‘(2) The Secretary may not approve, extend, enhanced FMAP determined under section ‘‘(v) NO FEDERAL PAYMENTS OTHER THAN FROM renew, or amend a waiver, experimental, pilot, 2105(b) shall apply to expenditures under an ap- BLOCK GRANT SET ASIDE.—No payments shall be or demonstration project with respect to a State plicable existing waiver for the provision of made to a State for expenditures described in after the date of enactment of the Children’s child health assistance or other health benefits clause (ii) after the total amount set aside under Health Insurance Program Reauthorization Act coverage to a parent of a targeted low-income clause (i) for a fiscal year has been paid to the of 2009 that would waive or modify the require- child during the third and fourth quarters of State. ments of section 2111.’’. fiscal year 2009 and during fiscal years 2010 and ‘‘(vi) NO INCREASE IN INCOME ELIGIBILITY (B) Section 6102(c) of the Deficit Reduction 2011. LEVEL FOR PARENTS.—No payments shall be Act of 2005 (Public Law 109–171; 120 Stat. 131) is ‘‘(2) RULES FOR FISCAL YEARS 2012 THROUGH made to a State from the amount set aside under amended by striking ‘‘Nothing’’ and inserting 2013.— clause (i) for a fiscal year for expenditures for ‘‘Subject to section 2111 of the Social Security ‘‘(A) PAYMENTS FOR COVERAGE LIMITED TO providing child health assistance or health ben- Act, as added by section 112 of the Children’s BLOCK GRANT FUNDED FROM STATE ALLOT- efits coverage to a parent of a targeted low-in- Health Insurance Program Reauthorization Act MENT.—Any State that provides child health as- come child whose family income exceeds the in- of 2009, nothing’’. sistance or health benefits coverage under an come eligibility level applied under the applica- (b) GAO STUDY AND REPORT.— applicable existing waiver for a parent of a tar- ble existing waiver to parents of targeted low-in- (1) IN GENERAL.—The Comptroller General of geted low-income child may elect to continue to come children on the date of enactment of the the United States shall conduct a study of provide such assistance or coverage through fis- Children’s Health Insurance Program Reauthor- whether— cal year 2012 or 2013, subject to the same terms ization Act of 2009. (A) the coverage of a parent, a caretaker rel- and conditions that applied under the applica- ‘‘(3) OUTREACH OR COVERAGE BENCHMARKS.— ative (as such term is used in carrying out sec- ble existing waiver, unless otherwise modified in For purposes of paragraph (2), the outreach or tion 1931), or a legal guardian of a targeted low- subparagraph (B). coverage benchmarks described in this para- income child under a State health plan under ‘‘(B) TERMS AND CONDITIONS.— graph are as follows: title XXI of the Social Security Act increases the ‘‘(i) BLOCK GRANT SET ASIDE FROM STATE AL- ‘‘(A) SIGNIFICANT CHILD OUTREACH CAM- enrollment of, or the quality of care for, chil- LOTMENT.—If the State makes an election under PAIGN.—The State— dren, and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00110 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.023 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1213 (B) such parents, relatives, and legal guard- odologies used by the State to determine income ties funded by a grant awarded under this sec- ians who enroll in such a plan are more likely or assets under such plan. tion; and to enroll their children in such a plan or in a SEC. 115. STATE AUTHORITY UNDER MEDICAID. ‘‘(4) an assurance that the eligible entity State plan under title XIX of such Act. Notwithstanding any other provision of law, shall— (2) REPORT.—Not later than 2 years after the including the fourth sentence of subsection (b) ‘‘(A) conduct an assessment of the effective- date of the enactment of this Act, the Comp- of section 1905 of the Social Security Act (42 ness of such activities against the performance troller General shall report the results of the U.S.C. 1396d) or subsection (u) of such section, measures; study to the Committee on Finance of the Sen- at State option, the Secretary shall provide the ‘‘(B) cooperate with the collection and report- ate and the Committee on Energy and Commerce State with the Federal medical assistance per- ing of enrollment data and other information in of the House of Representatives, including rec- centage determined for the State for Medicaid order for the Secretary to conduct such assess- ommendations (if any) for changes in legisla- with respect to expenditures described in section ments; and tion. 1905(u)(2)(A) of such Act or otherwise made to ‘‘(C) in the case of an eligible entity that is SEC. 113. ELIMINATION OF COUNTING MEDICAID provide medical assistance under Medicaid to a not the State, provide the State with enrollment CHILD PRESUMPTIVE ELIGIBILITY child who could be covered by the State under data and other information as necessary for the COSTS AGAINST TITLE XXI ALLOT- CHIP. State to make necessary projections of eligible MENT. children and pregnant women. TITLE II—OUTREACH AND ENROLLMENT (a) IN GENERAL.—Section 2105(a)(1) (42 U.S.C. ‘‘(d) DISSEMINATION OF ENROLLMENT DATA 1397ee(a)(1)) is amended— Subtitle A—Outreach and Enrollment AND INFORMATION DETERMINED FROM EFFEC- (1) in the matter preceding subparagraph (A), Activities TIVENESS ASSESSMENTS; ANNUAL REPORT.—The by striking ‘‘(or, in the case of expenditures de- SEC. 201. GRANTS AND ENHANCED ADMINISTRA- Secretary shall— scribed in subparagraph (B), the Federal med- TIVE FUNDING FOR OUTREACH AND ‘‘(1) make publicly available the enrollment ical assistance percentage (as defined in the ENROLLMENT. data and information collected and reported in first sentence of section 1905(b)))’’; and (a) GRANTS.—Title XXI (42 U.S.C. 1397aa et accordance with subsection (c)(4)(B); and (2) by striking subparagraph (B) and inserting seq.), as amended by section 111, is amended by ‘‘(2) submit an annual report to Congress on the following new subparagraph: adding at the end the following: the outreach and enrollment activities con- ‘‘(B) [reserved]’’. ‘‘SEC. 2113. GRANTS TO IMPROVE OUTREACH AND ducted with funds appropriated under this sec- (b) AMENDMENTS TO MEDICAID.— ENROLLMENT. tion. (1) ELIGIBILITY OF A NEWBORN.—Section ‘‘(a) OUTREACH AND ENROLLMENT GRANTS; ‘‘(e) MAINTENANCE OF EFFORT FOR STATES 1902(e)(4) (42 U.S.C. 1396a(e)(4)) is amended in NATIONAL CAMPAIGN.— AWARDED GRANTS; NO MATCH REQUIRED FOR the first sentence by striking ‘‘so long as the ‘‘(1) IN GENERAL.—From the amounts appro- ANY ELIGIBLE ENTITY AWARDED A GRANT.— child is a member of the woman’s household and priated under subsection (g), subject to para- ‘‘(1) STATE MAINTENANCE OF EFFORT.—In the the woman remains (or would remain if preg- graph (2), the Secretary shall award grants to case of a State that is awarded a grant under nant) eligible for such assistance’’. eligible entities during the period of fiscal years this section, the State share of funds expended (2) APPLICATION OF QUALIFIED ENTITIES TO 2009 through 2013 to conduct outreach and en- for outreach and enrollment activities under the PRESUMPTIVE ELIGIBILITY FOR PREGNANT WOMEN rollment efforts that are designed to increase the State child health plan shall not be less than UNDER MEDICAID.—Section 1920(b) (42 U.S.C. enrollment and participation of eligible children the State share of such funds expended in the 1396r–1(b)) is amended by adding after para- under this title and title XIX. fiscal year preceding the first fiscal year for graph (2) the following flush sentence: ‘‘(2) TEN PERCENT SET ASIDE FOR NATIONAL EN- which the grant is awarded. ‘‘The term ‘qualified provider’ also includes a ROLLMENT CAMPAIGN.—An amount equal to 10 ‘‘(2) NO MATCHING REQUIREMENT.—No eligible qualified entity, as defined in section percent of such amounts shall be used by the entity awarded a grant under subsection (a) 1920A(b)(3).’’. Secretary for expenditures during such period to shall be required to provide any matching funds SEC. 114. LIMITATION ON MATCHING RATE FOR carry out a national enrollment campaign in ac- as a condition for receiving the grant. STATES THAT PROPOSE TO COVER cordance with subsection (h). ‘‘(f) DEFINITIONS.—In this section: CHILDREN WITH EFFECTIVE FAMILY ‘‘(b) PRIORITY FOR AWARD OF GRANTS.— ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti- INCOME THAT EXCEEDS 300 PER- ‘‘(1) IN GENERAL.—In awarding grants under ty’ means any of the following: CENT OF THE POVERTY LINE. subsection (a), the Secretary shall give priority ‘‘(A) A State with an approved child health (a) FMAP APPLIED TO EXPENDITURES.—Sec- to eligible entities that— plan under this title. tion 2105(c) (42 U.S.C. 1397ee(c)) is amended by ‘‘(A) propose to target geographic areas with ‘‘(B) A local government. adding at the end the following new paragraph: high rates of— ‘‘(C) An Indian tribe or tribal consortium, a ‘‘(8) LIMITATION ON MATCHING RATE FOR EX- ‘‘(i) eligible but unenrolled children, including tribal organization, an urban Indian organiza- PENDITURES FOR CHILD HEALTH ASSISTANCE PRO- such children who reside in rural areas; or tion receiving funds under title V of the Indian VIDED TO CHILDREN WHOSE EFFECTIVE FAMILY ‘‘(ii) racial and ethnic minorities and health Health Care Improvement Act (25 U.S.C. 1651 et INCOME EXCEEDS 300 PERCENT OF THE POVERTY disparity populations, including those proposals seq.), or an Indian Health Service provider. LINE.— that address cultural and linguistic barriers to ‘‘(D) A Federal health safety net organiza- ‘‘(A) FMAP APPLIED TO EXPENDITURES.—Ex- enrollment; and tion. cept as provided in subparagraph (B), for fiscal ‘‘(B) submit the most demonstrable evidence ‘‘(E) A national, State, local, or community- years beginning with fiscal year 2009, the Fed- required under paragraphs (1) and (2) of sub- based public or nonprofit private organization, eral medical assistance percentage (as deter- section (c). including organizations that use community mined under section 1905(b) without regard to ‘‘(2) TEN PERCENT SET ASIDE FOR OUTREACH TO health workers or community-based doula pro- clause (4) of such section) shall be substituted INDIAN CHILDREN.—An amount equal to 10 per- grams. for the enhanced FMAP under subsection (a)(1) cent of the funds appropriated under subsection ‘‘(F) A faith-based organization or consortia, with respect to any expenditures for providing (g) shall be used by the Secretary to award to the extent that a grant awarded to such an child health assistance or health benefits cov- grants to Indian Health Service providers and entity is consistent with the requirements of sec- erage for a targeted low-income child whose ef- urban Indian organizations receiving funds tion 1955 of the Public Health Service Act (42 fective family income would exceed 300 percent under title V of the Indian Health Care Im- U.S.C. 300x–65) relating to a grant award to of the poverty line but for the application of a provement Act (25 U.S.C. 1651 et seq.) for out- nongovernmental entities. general exclusion of a block of income that is reach to, and enrollment of, children who are ‘‘(G) An elementary or secondary school. not determined by type of expense or type of in- Indians. ‘‘(2) FEDERAL HEALTH SAFETY NET ORGANIZA- come. ‘‘(c) APPLICATION.—An eligible entity that de- TION.—The term ‘Federal health safety net orga- ‘‘(B) EXCEPTION.—Subparagraph (A) shall not sires to receive a grant under subsection (a) nization’ means— apply to any State that, on the date of enact- shall submit an application to the Secretary in ‘‘(A) a Federally-qualified health center (as ment of the Children’s Health Insurance Pro- such form and manner, and containing such in- defined in section 1905(l)(2)(B)); gram Reauthorization Act of 2009, has an ap- formation, as the Secretary may decide. Such ‘‘(B) a hospital defined as a disproportionate proved State plan amendment or waiver to pro- application shall include— share hospital for purposes of section 1923; vide, or has enacted a State law to submit a ‘‘(1) evidence demonstrating that the entity ‘‘(C) a covered entity described in section State plan amendment to provide, expenditures includes members who have access to, and credi- 340B(a)(4) of the Public Health Service Act (42 described in such subparagraph under the State bility with, ethnic or low-income populations in U.S.C. 256b(a)(4)); and child health plan.’’. the communities in which activities funded ‘‘(D) any other entity or consortium that (b) RULE OF CONSTRUCTION.—Nothing in the under the grant are to be conducted; serves children under a federally funded pro- amendments made by this section shall be con- ‘‘(2) evidence demonstrating that the entity gram, including the special supplemental nutri- strued as— has the ability to address barriers to enrollment, tion program for women, infants, and children (1) changing any income eligibility level for such as lack of awareness of eligibility, stigma (WIC) established under section 17 of the Child children under title XXI of the Social Security concerns and punitive fears associated with re- Nutrition Act of 1966 (42 U.S.C. 1786), the Head Act; or ceipt of benefits, and other cultural barriers to Start and Early Head Start programs under the (2) changing the flexibility provided States applying for and receiving child health assist- Head Start Act (42 U.S.C. 9801 et seq.), the under such title to establish the income eligi- ance or medical assistance; school lunch program established under the bility level for targeted low-income children ‘‘(3) specific quality or outcomes performance Richard B. Russell National School Lunch Act, under a State child health plan and the meth- measures to evaluate the effectiveness of activi- and an elementary or secondary school.

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‘‘(3) INDIANS; INDIAN TRIBE; TRIBAL ORGANIZA- (iii) by inserting after clause (iii) the following 1397ee(c)(2)) is amended by adding at the end TION; URBAN INDIAN ORGANIZATION.—The terms new clause: the following: ‘Indian’, ‘Indian tribe’, ‘tribal organization’, ‘‘(iv) for translation or interpretation services ‘‘(C) NONAPPLICATION TO CERTAIN EXPENDI- and ‘urban Indian organization’ have the in connection with the enrollment of, retention TURES.—The limitation under subparagraph (A) meanings given such terms in section 4 of the of, and use of services under this title by, indi- shall not apply with respect to the following ex- Indian Health Care Improvement Act (25 U.S.C. viduals for whom English is not their primary penditures: 1603). language (as found necessary by the Secretary ‘‘(i) EXPENDITURES TO INCREASE OUTREACH TO, ‘‘(4) COMMUNITY HEALTH WORKER.—The term for the proper and efficient administration of AND THE ENROLLMENT OF, INDIAN CHILDREN ‘community health worker’ means an individual the State plan); and’’. UNDER THIS TITLE AND TITLE xix.—Expenditures who promotes health or nutrition within the (2) MEDICAID.— for outreach activities to families of Indian chil- community in which the individual resides— (A) USE OF MEDICAID FUNDS.—Section dren likely to be eligible for child health assist- ‘‘(A) by serving as a liaison between commu- 1903(a)(2) (42 U.S.C. 1396b(a)(2)) is amended by ance under the plan or medical assistance under nities and health care agencies; adding at the end the following new subpara- the State plan under title XIX (or under a waiv- ‘‘(B) by providing guidance and social assist- graph: er of such plan), to inform such families of the ance to community residents; ‘‘(E) an amount equal to 75 percent of so availability of, and to assist them in enrolling ‘‘(C) by enhancing community residents’ abil- much of the sums expended during such quarter their children in, such plans, including such ac- ity to effectively communicate with health care (as found necessary by the Secretary for the tivities conducted under grants, contracts, or providers; proper and efficient administration of the State agreements entered into under section 1139(a).’’. ‘‘(D) by providing culturally and linguis- plan) as are attributable to translation or inter- SEC. 203. STATE OPTION TO RELY ON FINDINGS tically appropriate health or nutrition edu- pretation services in connection with the enroll- FROM AN EXPRESS LANE AGENCY TO cation; ment of, retention of, and use of services under CONDUCT SIMPLIFIED ELIGIBILITY ‘‘(E) by advocating for individual and commu- this title by, children of families for whom DETERMINATIONS. nity health or nutrition needs; and English is not the primary language; plus’’. (a) APPLICATION UNDER MEDICAID AND CHIP ‘‘(F) by providing referral and followup serv- (B) USE OF COMMUNITY HEALTH WORKERS FOR PROGRAMS.— ices. OUTREACH ACTIVITIES.— (1) MEDICAID.—Section 1902(e) (42 U.S.C. ‘‘(g) APPROPRIATION.—There is appropriated, (i) IN GENERAL.—Section 2102(c)(1) of such Act 1396a(e)) is amended by adding at the end the out of any money in the Treasury not otherwise (42 U.S.C. 1397bb(c)(1)) is amended by inserting following: appropriated, $100,000,000 for the period of fiscal ‘‘(through community health workers and oth- ‘‘(13) EXPRESS LANE OPTION.— years 2009 through 2013, for the purpose of ers)’’ after ‘‘Outreach’’. ‘‘(A) IN GENERAL.— awarding grants under this section. Amounts (ii) IN FEDERAL EVALUATION.—Section ‘‘(i) OPTION TO USE A FINDING FROM AN EX- appropriated and paid under the authority of 2108(c)(3)(B) of such Act (42 U.S.C. PRESS LANE AGENCY.—At the option of the State, this section shall be in addition to amounts ap- 1397hh(c)(3)(B)) is amended by inserting ‘‘(such the State plan may provide that in determining propriated under section 2104 and paid to States as through community health workers and oth- eligibility under this title for a child (as defined in accordance with section 2105, including with ers)’’ after ‘‘including practices’’. in subparagraph (G)), the State may rely on a respect to expenditures for outreach activities in SEC. 202. INCREASED OUTREACH AND ENROLL- finding made within a reasonable period (as de- accordance with subsections (a)(1)(D)(iii) and MENT OF INDIANS. termined by the State) from an Express Lane (c)(2)(C) of that section. (a) IN GENERAL.—Section 1139 (42 U.S.C. agency (as defined in subparagraph (F)) when ‘‘(h) NATIONAL ENROLLMENT CAMPAIGN.— 1320b–9) is amended to read as follows: it determines whether a child satisfies one or From the amounts made available under sub- ‘‘SEC. 1139. IMPROVED ACCESS TO, AND DELIVERY more components of eligibility for medical assist- section (a)(2), the Secretary shall develop and OF, HEALTH CARE FOR INDIANS ance under this title. The State may rely on a implement a national enrollment campaign to UNDER TITLES XIX AND XXI. finding from an Express Lane agency notwith- improve the enrollment of underserved child ‘‘(a) AGREEMENTS WITH STATES FOR MEDICAID standing sections 1902(a)(46)(B) and 1137(d) or populations in the programs established under AND CHIP OUTREACH ONORNEAR RESERVA- any differences in budget unit, disregard, deem- this title and title XIX. Such campaign may in- TIONS TO INCREASE THE ENROLLMENT OF INDIANS ing or other methodology, if the following re- clude— IN THOSE PROGRAMS.— quirements are met: ‘‘(1) the establishment of partnerships with ‘‘(1) IN GENERAL.—In order to improve the ac- ‘‘(I) PROHIBITION ON DETERMINING CHILDREN the Secretary of Education and the Secretary of cess of Indians residing on or near a reservation INELIGIBLE FOR COVERAGE.—If a finding from an Agriculture to develop national campaigns to to obtain benefits under the Medicaid and State Express Lane agency would result in a deter- link the eligibility and enrollment systems for children’s health insurance programs estab- mination that a child does not satisfy an eligi- the assistance programs each Secretary admin- lished under titles XIX and XXI, the Secretary bility requirement for medical assistance under isters that often serve the same children; shall encourage the State to take steps to pro- this title and for child health assistance under ‘‘(2) the integration of information about the vide for enrollment on or near the reservation. title XXI, the State shall determine eligibility programs established under this title and title Such steps may include outreach efforts such as for assistance using its regular procedures. XIX in public health awareness campaigns ad- the outstationing of eligibility workers, entering ‘‘(II) NOTICE REQUIREMENT.—For any child ministered by the Secretary; into agreements with the Indian Health Service, who is found eligible for medical assistance ‘‘(3) increased financial and technical support Indian Tribes, Tribal Organizations, and Urban under the State plan under this title or child for enrollment hotlines maintained by the Sec- Indian Organizations to provide outreach, edu- health assistance under title XXI and who is retary to ensure that all States participate in cation regarding eligibility and benefits, enroll- subject to premiums based on an Express Lane such hotlines; ment, and translation services when such serv- agency’s finding of such child’s income level, ‘‘(4) the establishment of joint public aware- ices are appropriate. the State shall provide notice that the child may ness outreach initiatives with the Secretary of ‘‘(2) CONSTRUCTION.—Nothing in paragraph qualify for lower premium payments if evalu- Education and the Secretary of Labor regarding (1) shall be construed as affecting arrangements ated by the State using its regular policies and the importance of health insurance to building entered into between States and the Indian of the procedures for requesting such an evalua- strong communities and the economy; Health Service, Indian Tribes, Tribal Organiza- tion. ‘‘(5) the development of special outreach mate- tions, or Urban Indian Organizations for such ‘‘(III) COMPLIANCE WITH SCREEN AND ENROLL rials for Native Americans or for individuals Service, Tribes, or Organizations to conduct ad- REQUIREMENT.—The State shall satisfy the re- with limited English proficiency; and ministrative activities under such titles. quirements under subparagraphs (A) and (B) of ‘‘(6) such other outreach initiatives as the ‘‘(b) REQUIREMENT TO FACILITATE COOPERA- section 2102(b)(3) (relating to screen and enroll) Secretary determines would increase public TION.—The Secretary, acting through the Cen- before enrolling a child in child health assist- awareness of the programs under this title and ters for Medicare & Medicaid Services, shall ance under title XXI. At its option, the State title XIX.’’. take such steps as are necessary to facilitate co- may fulfill such requirements in accordance (b) ENHANCED ADMINISTRATIVE FUNDING FOR operation with, and agreements between, States with either option provided under subparagraph TRANSLATION OR INTERPRETATION SERVICES and the Indian Health Service, Indian Tribes, (C) of this paragraph. UNDER CHIP AND MEDICAID.— Tribal Organizations, or Urban Indian Organi- ‘‘(IV) VERIFICATION OF CITIZENSHIP OR NA- (1) CHIP.—Section 2105(a)(1) (42 U.S.C. zations with respect to the provision of health TIONALITY STATUS.—The State shall satisfy the 1397ee(a)(1)), as amended by section 113, is care items and services to Indians under the requirements of section 1902(a)(46)(B) or amended— programs established under title XIX or XXI. 2105(c)(9), as applicable for verifications of citi- (A) in the matter preceding subparagraph (A), ‘‘(c) DEFINITION OF INDIAN; INDIAN TRIBE; IN- zenship or nationality status. by inserting ‘‘(or, in the case of expenditures de- DIAN HEALTH PROGRAM; TRIBAL ORGANIZATION; ‘‘(V) CODING.—The State meets the require- scribed in subparagraph (D)(iv), the higher of 75 URBAN INDIAN ORGANIZATION.—In this section, ments of subparagraph (E). percent or the sum of the enhanced FMAP plus the terms ‘Indian’, ‘Indian Tribe’, ‘Indian ‘‘(ii) OPTION TO APPLY TO RENEWALS AND RE- 5 percentage points)’’ after ‘‘enhanced FMAP’’; Health Program’, ‘Tribal Organization’, and DETERMINATIONS.—The State may apply the and ‘Urban Indian Organization’ have the meanings provisions of this paragraph when conducting (B) in subparagraph (D)— given those terms in section 4 of the Indian initial determinations of eligibility, redetermina- (i) in clause (iii), by striking ‘‘and’’ at the Health Care Improvement Act.’’. tions of eligibility, or both, as described in the end; (b) NONAPPLICATION OF 10 PERCENT LIMIT ON State plan. (ii) by redesignating clause (iv) as clause (v); OUTREACH AND CERTAIN OTHER EXPENDI- ‘‘(B) RULES OF CONSTRUCTION.—Nothing in and TURES.—Section 2105(c)(2) (42 U.S.C. this paragraph shall be construed—

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‘‘(i) to limit or prohibit a State from taking ‘‘(IV) REQUIREMENT FOR SIMPLIFIED DETER- ple for the fiscal year that are in excess of a 3 any actions otherwise permitted under this title MINATION.—In making such a determination, percent error rate with respect to such children. or title XXI in determining eligibility for or en- the State shall use procedures that, to the max- ‘‘(ii) NO PUNITIVE ACTION BASED ON ERROR rolling children into medical assistance under imum feasible extent, reduce the burden imposed RATE.—The Secretary shall not apply the error this title or child health assistance under title on the individual of such determination. Such rate derived from the sample under clause (i) to XXI; or procedures may not require the child’s parent, the entire population of children enrolled in the ‘‘(ii) to modify the limitations in section guardian, or custodial relative to provide or State Medicaid plan or the State CHIP plan 1902(a)(5) concerning the agencies that may verify information that already has been pro- through reliance on a finding made by an Ex- make a determination of eligibility for medical vided to the State agency by an Express Lane press Lane agency, or to the population of chil- assistance under this title. agency or another source of information unless dren enrolled in such plans on the basis of the ‘‘(C) OPTIONS FOR SATISFYING THE SCREEN AND the State agency has reason to believe the infor- State’s regular procedures for determining eligi- ENROLL REQUIREMENT.— mation is erroneous. bility, or penalize the State on the basis of such ‘‘(i) IN GENERAL.—With respect to a child ‘‘(V) AVAILABILITY OF CHIP MATCHING FUNDS error rate in any manner other than the reduc- whose eligibility for medical assistance under DURING TEMPORARY ENROLLMENT PERIOD.—Med- tion of payments provided for under clause this title or for child health assistance under ical assistance for items and services that are (i)(V). title XXI has been evaluated by a State agency provided to a child enrolled in title XXI during ‘‘(iii) RULE OF CONSTRUCTION.—Nothing in using an income finding from an Express Lane a temporary enrollment period under this clause this paragraph shall be construed as relieving a agency, a State may carry out its duties under shall be treated as child health assistance under State that elects to apply this paragraph from subparagraphs (A) and (B) of section 2102(b)(3) such title. being subject to a penalty under section 1903(u), (relating to screen and enroll) in accordance ‘‘(D) OPTION FOR AUTOMATIC ENROLLMENT.— for payments made under the State Medicaid with either clause (ii) or clause (iii). ‘‘(i) IN GENERAL.—The State may initiate and plan with respect to ineligible individuals and ‘‘(ii) ESTABLISHING A SCREENING THRESHOLD.— determine eligibility for medical assistance families that are determined to exceed the error ‘‘(I) IN GENERAL.—Under this clause, the State under the State Medicaid plan or for child rate permitted under that section (as determined establishes a screening threshold set as a per- health assistance under the State CHIP plan without regard to the error rate determined centage of the Federal poverty level that exceeds without a program application from, or on be- under clause (i)(II)). the highest income threshold applicable under half of, the child based on data obtained from ‘‘(iv) ERROR RATE DEFINED.—In this subpara- this title to the child by a minimum of 30 per- sources other than the child (or the child’s fam- graph, the term ‘error rate’ means the rate of er- centage points or, at State option, a higher ily), but a child can only be automatically en- roneous excess payments for medical assistance number of percentage points that reflects the rolled in the State Medicaid plan or the State (as defined in section 1903(u)(1)(D)) for the pe- value (as determined by the State and described CHIP plan if the child or the family affirma- riod involved, except that such payments shall in the State plan) of any differences between in- tively consents to being enrolled through affir- be limited to individuals for which eligibility de- come methodologies used by the program admin- mation in writing, by telephone, orally, through terminations are made under this paragraph istered by the Express Lane agency and the electronic signature, or through any other and except that in applying this paragraph methodologies used by the State in determining means specified by the Secretary or by signature under title XXI, there shall be substituted for eligibility for medical assistance under this title. on an Express Lane agency application, if the references to provisions of this title cor- ‘‘(II) CHILDREN WITH INCOME NOT ABOVE requirement of clause (ii) is met. responding provisions within title XXI. THRESHOLD.—If the income of a child does not ‘‘(ii) INFORMATION REQUIREMENT.—The re- ‘‘(F) EXPRESS LANE AGENCY.— exceed the screening threshold, the child is quirement of this clause is that the State in- ‘‘(i) IN GENERAL.—In this paragraph, the term deemed to satisfy the income eligibility criteria forms the parent, guardian, or custodial relative ‘Express Lane agency’ means a public agency for medical assistance under this title regardless of the child of the services that will be covered, that— of whether such child would otherwise satisfy appropriate methods for using such services, ‘‘(I) is determined by the State Medicaid agen- such criteria. premium or other cost sharing charges (if any) cy or the State CHIP agency (as applicable) to ‘‘(III) CHILDREN WITH INCOME ABOVE THRESH- that apply, medical support obligations (under be capable of making the determinations of one OLD.—If the income of a child exceeds the section 1912(a)) created by enrollment (if appli- or more eligibility requirements described in sub- screening threshold, the child shall be consid- cable), and the actions the parent, guardian, or paragraph (A)(i); ered to have an income above the Medicaid ap- relative must take to maintain enrollment and ‘‘(II) is identified in the State Medicaid plan plicable income level described in section renew coverage. or the State CHIP plan; and 2110(b)(4) and to satisfy the requirement under ‘‘(E) CODING; APPLICATION TO ENROLLMENT ‘‘(III) notifies the child’s family— section 2110(b)(1)(C) (relating to the requirement ERROR RATES.— ‘‘(aa) of the information which shall be dis- that CHIP matching funds be used only for chil- ‘‘(i) IN GENERAL.—For purposes of subpara- closed in accordance with this paragraph; dren not eligible for Medicaid). If such a child graph (A)(iv), the requirement of this subpara- ‘‘(bb) that the information disclosed will be is enrolled in child health assistance under title graph for a State is that the State agrees to— used solely for purposes of determining eligi- XXI, the State shall provide the parent, guard- ‘‘(I) assign such codes as the Secretary shall bility for medical assistance under the State ian, or custodial relative with the following: require to the children who are enrolled in the Medicaid plan or for child health assistance ‘‘(aa) Notice that the child may be eligible to State Medicaid plan or the State CHIP plan under the State CHIP plan; and receive medical assistance under the State plan through reliance on a finding made by an Ex- ‘‘(cc) that the family may elect to not have the under this title if evaluated for such assistance press Lane agency for the duration of the information disclosed for such purposes; and under the State’s regular procedures and notice State’s election under this paragraph; ‘‘(IV) enters into, or is subject to, an inter- of the process through which a parent, guard- ‘‘(II) annually provide the Secretary with a agency agreement to limit the disclosure and use ian, or custodial relative can request that the statistically valid sample (that is approved by of the information disclosed. State evaluate the child’s eligibility for medical Secretary) of the children enrolled in such plans ‘‘(ii) INCLUSION OF SPECIFIC PUBLIC AGEN- assistance under this title using such regular through reliance on such a finding by con- CIES.—Such term includes the following: procedures. ducting a full Medicaid eligibility review of the ‘‘(I) A public agency that determines eligi- ‘‘(bb) A description of differences between the children identified for such sample for purposes bility for assistance under any of the following: medical assistance provided under this title and of determining an eligibility error rate (as de- ‘‘(aa) The temporary assistance for needy child health assistance under title XXI, includ- scribed in clause (iv)) with respect to the enroll- families program funded under part A of title ing differences in cost-sharing requirements and ment of such children (and shall not include IV. covered benefits. such children in any data or samples used for ‘‘(bb) A State program funded under part D of ‘‘(iii) TEMPORARY ENROLLMENT IN CHIP PEND- purposes of complying with a Medicaid Eligi- title IV. ING SCREEN AND ENROLL.— bility Quality Control (MEQC) review or a pay- ‘‘(cc) The State Medicaid plan. ‘‘(I) IN GENERAL.—Under this clause, a State ment error rate measurement (PERM) require- ‘‘(dd) The State CHIP plan. enrolls a child in child health assistance under ment); ‘‘(ee) The Food and Nutrition Act of 2008 (7 title XXI for a temporary period if the child ap- ‘‘(III) submit the error rate determined under U.S.C. 2011 et seq.). pears eligible for such assistance based on an subclause (II) to the Secretary; ‘‘(ff) The Head Start Act (42 U.S.C. 9801 et income finding by an Express Lane agency. ‘‘(IV) if such error rate exceeds 3 percent for seq.). ‘‘(II) DETERMINATION OF ELIGIBILITY.—During either of the first 2 fiscal years in which the ‘‘(gg) The Richard B. Russell National School such temporary enrollment period, the State State elects to apply this paragraph, dem- Lunch Act (42 U.S.C. 1751 et seq.). shall determine the child’s eligibility for child onstrate to the satisfaction of the Secretary the ‘‘(hh) The Child Nutrition Act of 1966 (42 health assistance under title XXI or for medical specific corrective actions implemented by the U.S.C. 1771 et seq.). assistance under this title in accordance with State to improve upon such error rate; and ‘‘(ii) The Child Care and Development Block this clause. ‘‘(V) if such error rate exceeds 3 percent for Grant Act of 1990 (42 U.S.C. 9858 et seq.). ‘‘(III) PROMPT FOLLOW UP.—In making such a any fiscal year in which the State elects to ‘‘(jj) The Stewart B. McKinney Homeless As- determination, the State shall take prompt ac- apply this paragraph, a reduction in the sistance Act (42 U.S.C. 11301 et seq.). tion to determine whether the child should be amount otherwise payable to the State under ‘‘(kk) The United States Housing Act of 1937 enrolled in medical assistance under this title or section 1903(a) for quarters for that fiscal year, (42 U.S.C. 1437 et seq.). child health assistance under title XXI pursu- equal to the total amount of erroneous excess ‘‘(ll) The Native American Housing Assistance ant to subparagraphs (A) and (B) of section payments determined for the fiscal year only and Self-Determination Act of 1996 (25 U.S.C. 2102(b)(3) (relating to screen and enroll). with respect to the children included in the sam- 4101 et seq.).

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00113 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.023 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1216 CONGRESSIONAL RECORD — SENATE January 30, 2009 ‘‘(II) A State-specified governmental agency by an Express Lane agency improves the ability ‘‘(A) identifying individuals who are eligible that has fiscal liability or legal responsibility for of a State to identify and enroll low-income, un- or potentially eligible for medical assistance the accuracy of the eligibility determination insured children who are eligible but not en- under this title and enrolling or attempting to findings relied on by the State. rolled in such plans; enroll such individuals in the State plan; and ‘‘(III) A public agency that is subject to an (C) evaluating the administrative costs or sav- ‘‘(B) verifying the eligibility of individuals for interagency agreement limiting the disclosure ings related to identifying and enrolling chil- medical assistance under the State plan. and use of the information disclosed for pur- dren in such plans through reliance on such ‘‘(3) An interagency or other agreement, con- poses of determining eligibility under the State findings, and the extent to which such costs dif- sistent with standards developed by the Sec- Medicaid plan or the State CHIP plan. fer from the costs that the State otherwise would retary— ‘‘(iii) EXCLUSIONS.—Such term does not in- have incurred to identify and enroll low-income, ‘‘(A) prevents the unauthorized use, disclo- clude an agency that determines eligibility for a uninsured children who are eligible but not en- sure, or modification of such data and otherwise program established under the Social Services rolled in such plans; and meets applicable Federal requirements safe- Block Grant established under title XX or a pri- (D) any recommendations for legislative or ad- guarding privacy and data security; and vate, for-profit organization. ministrative changes that would improve the ef- ‘‘(B) requires the State agency administering ‘‘(iv) RULES OF CONSTRUCTION.—Nothing in fectiveness of enrolling children in such plans the State plan to use the data and information this paragraph shall be construed as— through reliance on such findings. obtained under this section to seek to enroll in- ‘‘(I) exempting a State Medicaid agency from (2) REPORT TO CONGRESS.—Not later than Sep- dividuals in the plan. complying with the requirements of section tember 30, 2012, the Secretary shall submit a re- ‘‘(c) PENALTIES FOR IMPROPER DISCLOSURE.— 1902(a)(4) relating to merit-based personnel port to Congress on the results of the evaluation ‘‘(1) CIVIL MONEY PENALTY.—A private entity standards for employees of the State Medicaid under paragraph (1). described in the subsection (a) that publishes, agency and safeguards against conflicts of in- (3) FUNDING.— discloses, or makes known in any manner, or to (A) IN GENERAL.—Out of any funds in the terest); or any extent not authorized by Federal law, any Treasury not otherwise appropriated, there is ‘‘(II) authorizing a State Medicaid agency information obtained under this section is sub- appropriated to the Secretary to carry out the that elects to use Express Lane agencies under ject to a civil money penalty in an amount equal evaluation under this subsection $5,000,000 for this subparagraph to use the Express Lane op- to $10,000 for each such unauthorized publica- the period of fiscal years 2009 through 2012. tion to avoid complying with such requirements tion or disclosure. The provisions of section (B) BUDGET AUTHORITY.—Subparagraph (A) for purposes of making eligibility determinations 1128A (other than subsections (a) and (b) and constitutes budget authority in advance of ap- under the State Medicaid plan. the second sentence of subsection (f)) shall propriations Act and represents the obligation of ‘‘(v) ADDITIONAL DEFINITIONS.—In this para- apply to a civil money penalty under this para- the Federal Government to provide for the pay- graph: graph in the same manner as such provisions ment of such amount to conduct the evaluation ‘‘(I) STATE.—The term ‘State’ means 1 of the apply to a penalty or proceeding under section under this subsection. 50 States or the District of Columbia. 1128A(a). ‘‘(II) STATE CHIP AGENCY.—The term ‘State (c) ELECTRONIC TRANSMISSION OF INFORMA- ‘‘(2) CRIMINAL PENALTY.—A private entity de- CHIP agency’ means the State agency respon- TION.—Section 1902 (42 U.S.C. 1396a) is amended scribed in the subsection (a) that willfully pub- sible for administering the State CHIP plan. by adding at the end the following new sub- lishes, discloses, or makes known in any man- ‘‘(III) STATE CHIP PLAN.—The term ‘State section: ner, or to any extent not authorized by Federal CHIP plan’ means the State child health plan ‘‘(dd) ELECTRONIC TRANSMISSION OF INFORMA- law, any information obtained under this sec- established under title XXI and includes any TION.—If the State agency determining eligi- tion shall be fined not more than $10,000 or im- waiver of such plan. bility for medical assistance under this title or prisoned not more than 1 year, or both, for each ‘‘(IV) STATE MEDICAID AGENCY.—The term child health assistance under title XXI verifies such unauthorized publication or disclosure. ‘State Medicaid agency’ means the State agency an element of eligibility based on information ‘‘(d) RULE OF CONSTRUCTION.—The limitations responsible for administering the State Medicaid from an Express Lane Agency (as defined in and requirements that apply to disclosure pur- plan. subsection (e)(13)(F)), or from another public suant to this section shall not be construed to ‘‘(V) STATE MEDICAID PLAN.—The term ‘State agency, then the applicant’s signature under Medicaid plan’ means the State plan established penalty of perjury shall not be required as to prohibit the conveyance or disclosure of data or under title XIX and includes any waiver of such such element. Any signature requirement for an information otherwise permitted under Federal plan. application for medical assistance may be satis- law (without regard to this section).’’. (2) CONFORMING AMENDMENT TO TITLE XXI.— ‘‘(G) CHILD DEFINED.—For purposes of this fied through an electronic signature, as defined paragraph, the term ‘child’ means an individual in section 1710(1) of the Government Paperwork Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)), as under 19 years of age, or, at the option of a Elimination Act (44 U.S.C. 3504 note). The re- amended by subsection (a)(2), is amended by State, such higher age, not to exceed 21 years of quirements of subparagraphs (A) and (B) of sec- adding at the end the following new subpara- age, as the State may elect. tion 1137(d)(2) may be met through evidence in graph: ‘‘(H) STATE OPTION TO RELY ON STATE INCOME digital or electronic form.’’. ‘‘(F) Section 1942 (relating to authorization to TAX DATA OR RETURN.—At the option of the (d) AUTHORIZATION OF INFORMATION DISCLO- receive data directly relevant to eligibility deter- State, a finding from an Express Lane agency SURE.— minations).’’. may include gross income or adjusted gross in- (1) IN GENERAL.—Title XIX is amended by (3) CONFORMING AMENDMENT TO PROVIDE AC- come shown by State income tax records or re- adding at the end the following new section: CESS TO DATA ABOUT ENROLLMENT IN INSURANCE turns. ‘‘SEC. 1942. AUTHORIZATION TO RECEIVE REL- FOR PURPOSES OF EVALUATING APPLICATIONS AND ‘‘(I) APPLICATION.—This paragraph shall not EVANT INFORMATION. FOR CHIP.—Section 1902(a)(25)(I)(i) (42 U.S.C. apply with respect to eligibility determinations ‘‘(a) IN GENERAL.—Notwithstanding any other 1396a(a)(25)(I)(i)) is amended— made after September 30, 2013.’’. provision of law, a Federal or State agency or (A) by inserting ‘‘(and, at State option, indi- (2) CHIP.—Section 2107(e)(1) (42 U.S.C. private entity in possession of the sources of viduals who apply or whose eligibility for med- 1397gg(e)(1)) is amended by redesignating sub- data directly relevant to eligibility determina- ical assistance is being evaluated in accordance paragraphs (B), (C), and (D) as subparagraphs tions under this title (including eligibility files with section 1902(e)(13)(D))’’ after ‘‘with respect (C), (D), and (E), respectively, and by inserting maintained by Express Lane agencies described to individuals who are eligible’’; and after subparagraph (A) the following new sub- in section 1902(e)(13)(F), information described (B) by inserting ‘‘under this title (and, at paragraph: in paragraph (2) or (3) of section 1137(a), vital State option, child health assistance under title ‘‘(B) Section 1902(e)(13) (relating to the State records information about births in any State, XXI)’’ after ‘‘the State plan’’. option to rely on findings from an Express Lane and information described in sections 453(i) and (e) AUTHORIZATION FOR STATES ELECTING EX- agency to help evaluate a child’s eligibility for 1902(a)(25)(I)) is authorized to convey such data PRESS LANE OPTION TO RECEIVE CERTAIN DATA medical assistance).’’. or information to the State agency admin- DIRECTLY RELEVANT TO DETERMINING ELIGI- (b) EVALUATION AND REPORT.— istering the State plan under this title, to the ex- BILITY AND CORRECT AMOUNT OF ASSISTANCE.— (1) EVALUATION.—The Secretary shall con- tent such conveyance meets the requirements of The Secretary shall enter into such agreements duct, by grant, contract, or interagency agree- subsection (b). as are necessary to permit a State that elects the ment, a comprehensive, independent evaluation ‘‘(b) REQUIREMENTS FOR CONVEYANCE.—Data Express Lane option under section 1902(e)(13) of of the option provided under the amendments or information may be conveyed pursuant to the Social Security Act to receive data directly made by subsection (a). Such evaluation shall subsection (a) only if the following requirements relevant to eligibility determinations and deter- include an analysis of the effectiveness of the are met: mining the correct amount of benefits under a option, and shall include— ‘‘(1) The individual whose circumstances are State child health plan under CHIP or a State (A) obtaining a statistically valid sample of described in the data or information (or such in- plan under Medicaid from the following: the children who were enrolled in the State dividual’s parent, guardian, caretaker relative, (1) The National Directory of New Hires estab- Medicaid plan or the State CHIP plan through or authorized representative) has either pro- lished under section 453(i) of the Social Security reliance on a finding made by an Express Lane vided advance consent to disclosure or has not Act (42 U.S.C. 653(i)). agency and determining the percentage of chil- objected to disclosure after receiving advance (2) Data regarding enrollment in insurance dren who were erroneously enrolled in such notice of disclosure and a reasonable oppor- that may help to facilitate outreach and enroll- plans; tunity to object. ment under the State Medicaid plan, the State (B) determining whether enrolling children in ‘‘(2) Such data or information are used solely CHIP plan, and such other programs as the Sec- such plans through reliance on a finding made for the purposes of— retary may specify.

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(f) EFFECTIVE DATE.—The amendments made of each individual newly enrolled in the State ‘‘(D) Subparagraphs (A) and (B) shall not by this section are effective on the date of the plan under this title that month who is not de- apply to a State for a fiscal year if there is an enactment of this Act. scribed in section 1903(x)(2) and who declares to agreement described in paragraph (2)(B) in ef- Subtitle B—Reducing Barriers to Enrollment be a United States citizen or national, with in- fect as of the close of the fiscal year that pro- formation in records maintained by the Commis- vides for the submission on a real-time basis of SEC. 211. VERIFICATION OF DECLARATION OF sioner. the information described in such paragraph. CITIZENSHIP OR NATIONALITY FOR ‘‘(B) In establishing the State program under PURPOSES OF ELIGIBILITY FOR ‘‘(4) Nothing in this subsection shall affect the MEDICAID AND CHIP. this paragraph, the State may enter into an rights of any individual under this title to ap- agreement with the Commissioner of Social Se- (a) ALTERNATIVE STATE PROCESS FOR peal any disenrollment from a State plan.’’. curity— VERIFICATION OF DECLARATION OF CITIZENSHIP (B) COSTS OF IMPLEMENTING AND MAINTAINING ‘‘(i) to provide, through an on-line system or OR NATIONALITY FOR PURPOSES OF ELIGIBILITY SYSTEM.—Section 1903(a)(3) (42 U.S.C. otherwise, for the electronic submission of, and FOR MEDICAID.— 1396b(a)(3)) is amended— response to, the information submitted under (i) by striking ‘‘plus’’ at the end of subpara- (1) ALTERNATIVE TO DOCUMENTATION REQUIRE- subparagraph (A) for an individual enrolled in graph (E) and inserting ‘‘and’’, and MENT.— the State plan under this title who declares to (ii) by adding at the end the following new (A) IN GENERAL.—Section 1902 (42 U.S.C. be citizen or national on at least a monthly subparagraph: 1396a), as amended by section 203(c), is amend- basis; or ‘‘(F)(i) 90 percent of the sums expended dur- ed— ‘‘(ii) to provide for a determination of the con- ing the quarter as are attributable to the design, (i) in subsection (a)(46)— sistency of the information submitted with the development, or installation of such mechanized (I) by inserting ‘‘(A)’’ after ‘‘(46)’’; information maintained in the records of the verification and information retrieval systems as (II) by adding ‘‘and’’ after the semicolon; and Commissioner through such other method as the Secretary determines are necessary to imple- (III) by adding at the end the following new agreed to by the State and the Commissioner ment section 1902(ee) (including a system de- subparagraph: and approved by the Secretary, provided that scribed in paragraph (2)(B) thereof), and ‘‘(B) provide, with respect to an individual de- such method is no more burdensome for individ- ‘‘(ii) 75 percent of the sums expended during claring to be a citizen or national of the United uals to comply with than any burdens that may the quarter as are attributable to the operation States for purposes of establishing eligibility apply under a method described in clause (i). of systems to which clause (i) applies, plus’’. under this title, that the State shall satisfy the ‘‘(C) The program established under this para- (2) LIMITATION ON WAIVER AUTHORITY.—Not- requirements of— graph shall provide that, in the case of any in- withstanding any provision of section 1115 of ‘‘(i) section 1903(x); or dividual who is required to submit a social secu- the Social Security Act (42 U.S.C. 1315), or any ‘‘(ii) subsection (ee);’’; and rity number to the State under subparagraph other provision of law, the Secretary may not (ii) by adding at the end the following new (A) and who is unable to provide the State with waive the requirements of section 1902(a)(46)(B) subsection: such number, shall be provided with at least the of such Act (42 U.S.C. 1396a(a)(46)(B)) with re- ‘‘(ee)(1) For purposes of subsection reasonable opportunity to present satisfactory spect to a State. (a)(46)(B)(ii), the requirements of this subsection documentary evidence of citizenship or nation- (3) CONFORMING AMENDMENTS.—Section 1903 with respect to an individual declaring to be a ality (as defined in section 1903(x)(3)) as is pro- (42 U.S.C. 1396b) is amended— citizen or national of the United States for pur- vided under clauses (i) and (ii) of section (A) in subsection (i)(22), by striking ‘‘sub- poses of establishing eligibility under this title, 1137(d)(4)(A) to an individual for the submittal section (x)’’ and inserting ‘‘section are, in lieu of requiring the individual to present to the State of evidence indicating a satisfactory 1902(a)(46)(B)’’; and satisfactory documentary evidence of citizenship immigration status. (B) in subsection (x)(1), by striking ‘‘sub- ‘‘(3)(A) The State agency implementing the or nationality under section 1903(x) (if the indi- section (i)(22)’’ and inserting ‘‘section plan approved under this title shall, at such vidual is not described in paragraph (2) of that 1902(a)(46)(B)(i)’’. times and in such form as the Secretary may section), as follows: (4) APPROPRIATION.—Out of any money in the specify, provide information on the percentage ‘‘(A) The State submits the name and social Treasury of the United States not otherwise ap- each month that the inconsistent submissions security number of the individual to the Com- propriated, there are appropriated to the Com- bears to the total submissions made for compari- missioner of Social Security as part of the pro- missioner of Social Security $5,000,000 to remain son for such month. For purposes of this sub- gram established under paragraph (2). available until expended to carry out the Com- paragraph, a name, social security number, or ‘‘(B) If the State receives notice from the Com- missioner’s responsibilities under section declaration of citizenship or nationality of an missioner of Social Security that the name or so- 1902(ee) of the Social Security Act, as added by individual shall be treated as inconsistent and cial security number, or the declaration of citi- subsection (a). included in the determination of such percent- zenship or nationality, of the individual is in- (b) CLARIFICATION OF REQUIREMENTS RELAT- age only if— consistent with information in the records main- ING TO PRESENTATION OF SATISFACTORY DOCU- ‘‘(i) the information submitted by the indi- tained by the Commissioner— MENTARY EVIDENCE OF CITIZENSHIP OR NATION- vidual is not consistent with information in ‘‘(i) the State makes a reasonable effort to ALITY.— records maintained by the Commissioner of So- identify and address the causes of such incon- (1) ACCEPTANCE OF DOCUMENTARY EVIDENCE sistency, including through typographical or cial Security; ‘‘(ii) the inconsistency is not resolved by the ISSUED BY A FEDERALLY RECOGNIZED INDIAN other clerical errors, by contacting the indi- TRIBE.—Section 1903(x)(3)(B) (42 U.S.C. vidual to confirm the accuracy of the name or State; ‘‘(iii) the individual was provided with a rea- 1396b(x)(3)(B)) is amended— social security number submitted or declaration sonable period of time to resolve the inconsist- (A) by redesignating clause (v) as clause (vi); of citizenship or nationality and by taking such ency with the Commissioner of Social Security and additional actions as the Secretary, through or provide satisfactory documentation of citizen- (B) by inserting after clause (iv), the following regulation or other guidance, or the State may ship status and did not successfully resolve such new clause: identify, and continues to provide the indi- inconsistency; and ‘‘(v)(I) Except as provided in subclause (II), a vidual with medical assistance while making ‘‘(iv) payment has been made for an item or document issued by a federally recognized In- such effort; and service furnished to the individual under this dian tribe evidencing membership or enrollment ‘‘(ii) in the case such inconsistency is not re- title. in, or affiliation with, such tribe (such as a trib- solved under clause (i), the State— ‘‘(B) If, for any fiscal year, the average al enrollment card or certificate of degree of In- ‘‘(I) notifies the individual of such fact; monthly percentage determined under subpara- dian blood). ‘‘(II) provides the individual with a period of graph (A) is greater than 3 percent— ‘‘(II) With respect to those federally recog- 90 days from the date on which the notice re- ‘‘(i) the State shall develop and adopt a cor- nized Indian tribes located within States having quired under subclause (I) is received by the in- rective plan to review its procedures for an international border whose membership in- dividual to either present satisfactory documen- verifying the identities of individuals seeking to cludes individuals who are not citizens of the tary evidence of citizenship or nationality (as enroll in the State plan under this title and to United States, the Secretary shall, after con- defined in section 1903(x)(3)) or resolve the in- identify and implement changes in such proce- sulting with such tribes, issue regulations au- consistency with the Commissioner of Social Se- dures to improve their accuracy; and thorizing the presentation of such other forms of curity (and continues to provide the individual ‘‘(ii) pay to the Secretary an amount equal to documentation (including tribal documentation, with medical assistance during such 90-day pe- the amount which bears the same ratio to the if appropriate) that the Secretary determines to riod); and total payments under the State plan for the fis- be satisfactory documentary evidence of citizen- ‘‘(III) disenrolls the individual from the State cal year for providing medical assistance to in- ship or nationality for purposes of satisfying the plan under this title within 30 days after the dividuals who provided inconsistent information requirement of this subsection.’’. end of such 90-day period if no such documen- as the number of individuals with inconsistent (2) REQUIREMENT TO PROVIDE REASONABLE OP- tary evidence is presented or if such inconsist- information in excess of 3 percent of such total PORTUNITY TO PRESENT SATISFACTORY DOCUMEN- ency is not resolved. submitted bears to the total number of individ- TARY EVIDENCE.—Section 1903(x) (42 U.S.C. ‘‘(2)(A) Each State electing to satisfy the re- uals with inconsistent information. 1396b(x)) is amended by adding at the end the quirements of this subsection for purposes of ‘‘(C) The Secretary may waive, in certain lim- following new paragraph: section 1902(a)(46)(B) shall establish a program ited cases, all or part of the payment under sub- ‘‘(4) In the case of an individual declaring to under which the State submits at least monthly paragraph (B)(ii) if the State is unable to reach be a citizen or national of the United States to the Commissioner of Social Security for com- the allowable error rate despite a good faith ef- with respect to whom a State requires the pres- parison of the name and social security number, fort by such State. entation of satisfactory documentary evidence

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00115 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.024 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1218 CONGRESSIONAL RECORD — SENATE January 30, 2009 of citizenship or nationality under section tures described in clause (i) or (ii) of section of establishing and renewing eligibility for chil- 1902(a)(46)(B)(i), the individual shall be pro- 1903(a)(3)(F) necessary to comply with subpara- dren and pregnant women for medical assist- vided at least the reasonable opportunity to graph (A) shall in no event be less than 90 per- ance under title XIX and child health assist- present satisfactory documentary evidence of cent and 75 percent, respectively.’’. ance under this title, and such process does not citizenship or nationality under this subsection (2) NONAPPLICATION OF ADMINISTRATIVE EX- require an application to be made in person or as is provided under clauses (i) and (ii) of sec- PENDITURES CAP.—Section 2105(c)(2)(C) (42 a face-to-face interview.’’. tion 1137(d)(4)(A) to an individual for the sub- U.S.C. 1397ee(c)(2)(C)), as amended by section SEC. 213. MODEL OF INTERSTATE COORDINATED mittal to the State of evidence indicating a satis- 202(b), is amended by adding at the end the fol- ENROLLMENT AND COVERAGE PROC- factory immigration status.’’. lowing: ESS. (3) CHILDREN BORN IN THE UNITED STATES TO ‘‘(ii) EXPENDITURES TO COMPLY WITH CITIZEN- (a) IN GENERAL.—In order to assure con- MOTHERS ELIGIBLE FOR MEDICAID.— SHIP OR NATIONALITY VERIFICATION REQUIRE- tinuity of coverage of low-income children (A) CLARIFICATION OF RULES.—Section 1903(x) MENTS.—Expenditures necessary for the State to under the Medicaid program and the State Chil- (42 U.S.C. 1396b(x)), as amended by paragraph comply with paragraph (9)(A).’’. dren’s Health Insurance Program (CHIP), not (2), is amended— (d) EFFECTIVE DATE.— later than 18 months after the date of the enact- (i) in paragraph (2)— (1) IN GENERAL.— ment of this Act, the Secretary of Health and (I) in subparagraph (C), by striking ‘‘or’’ at (A) IN GENERAL.—Except as provided in sub- Human Services, in consultation with State the end; paragraph (B), the amendments made by this Medicaid and CHIP directors and organizations (II) by redesignating subparagraph (D) as section shall take effect on January 1, 2010. representing program beneficiaries, shall de- subparagraph (E); and (B) TECHNICAL AMENDMENTS.—The amend- velop a model process for the coordination of the (III) by inserting after subparagraph (C) the ments made by— enrollment, retention, and coverage under such following new subparagraph: (i) paragraphs (1), (2), and (3) of subsection programs of children who, because of migration ‘‘(D) pursuant to the application of section (b) shall take effect as if included in the enact- of families, emergency evacuations, natural or 1902(e)(4) (and, in the case of an individual who ment of section 6036 of the Deficit Reduction Act other disasters, public health emergencies, edu- is eligible for medical assistance on such basis, of 2005 (Public Law 109–171; 120 Stat. 80); and cational needs, or otherwise, frequently change the individual shall be deemed to have provided (ii) paragraph (4) of subsection (b) shall take their State of residency or otherwise are tempo- satisfactory documentary evidence of citizenship effect as if included in the enactment of section rarily located outside of the State of their resi- or nationality and shall not be required to pro- 405 of division B of the Tax Relief and Health dency. vide further documentary evidence on any date Care Act of 2006 (Public Law 109–432; 120 Stat. (b) REPORT TO CONGRESS.—After development that occurs during or after the period in which 2996). of such model process, the Secretary of Health the individual is eligible for medical assistance (2) RESTORATION OF ELIGIBILITY.—In the case and Human Services shall submit to Congress a on such basis); or’’; and of an individual who, during the period that report describing additional steps or authority (ii) by adding at the end the following new began on July 1, 2006, and ends on October 1, needed to make further improvements to coordi- paragraph: 2009, was determined to be ineligible for medical nate the enrollment, retention, and coverage ‘‘(5) Nothing in subparagraph (A) or (B) of assistance under a State Medicaid plan, includ- under CHIP and Medicaid of children described section 1902(a)(46), the preceding paragraphs of ing any waiver of such plan, solely as a result in subsection (a). this subsection, or the Deficit Reduction Act of of the application of subsections (i)(22) and (x) SEC. 214. PERMITTING STATES TO ENSURE COV- 2005, including section 6036 of such Act, shall be of section 1903 of the Social Security Act (as in ERAGE WITHOUT A 5-YEAR DELAY OF construed as changing the requirement of sec- effect during such period), but who would have CERTAIN CHILDREN AND PREGNANT tion 1902(e)(4) that a child born in the United been determined eligible for such assistance if WOMEN UNDER THE MEDICAID PRO- GRAM AND CHIP. States to an alien mother for whom medical as- such subsections, as amended by subsection (b), (a) MEDICAID PROGRAM.—Section 1903(v) (42 had applied to the individual, a State may deem sistance for the delivery of such child is avail- U.S.C. 1396b(v)) is amended— able as treatment of an emergency medical con- the individual to be eligible for such assistance (1) in paragraph (1), by striking ‘‘paragraph dition pursuant to subsection (v) shall be as of the date that the individual was deter- (2)’’ and inserting ‘‘paragraphs (2) and (4)’’; deemed eligible for medical assistance during the mined to be ineligible for such medical assist- and first year of such child’s life.’’. ance on such basis. (2) by adding at the end the following new (B) STATE REQUIREMENT TO ISSUE SEPARATE (3) SPECIAL TRANSITION RULE FOR INDIANS.— paragraph: IDENTIFICATION NUMBER.—Section 1902(e)(4) (42 During the period that begins on July 1, 2006, ‘‘(4)(A) A State may elect (in a plan amend- U.S.C. 1396a(e)(4)) is amended by adding at the and ends on the effective date of final regula- ment under this title) to provide medical assist- end the following new sentence: ‘‘Notwith- tions issued under subclause (II) of section ance under this title, notwithstanding sections standing the preceding sentence, in the case of 1903(x)(3)(B)(v) of the Social Security Act (42 401(a), 402(b), 403, and 421 of the Personal Re- a child who is born in the United States to an U.S.C. 1396b(x)(3)(B)(v)) (as added by sub- sponsibility and Work Opportunity Reconcili- alien mother for whom medical assistance for section (b)(1)(B)), an individual who is a mem- ation Act of 1996, to children and pregnant the delivery of the child is made available pur- ber of a federally-recognized Indian tribe de- women who are lawfully residing in the United suant to section 1903(v), the State immediately scribed in subclause (II) of that section who pre- States (including battered individuals described shall issue a separate identification number for sents a document described in subclause (I) of in section 431(c) of such Act) and who are other- the child upon notification by the facility at such section that is issued by such Indian tribe, wise eligible for such assistance, within either or which such delivery occurred of the child’s shall be deemed to have presented satisfactory both of the following eligibility categories: birth.’’. evidence of citizenship or nationality for pur- ‘‘(i) PREGNANT WOMEN.—Women during preg- (4) TECHNICAL AMENDMENTS.—Section poses of satisfying the requirement of subsection nancy (and during the 60-day period beginning 1903(x)(2) (42 U.S.C. 1396b(x)) is amended— (x) of section 1903 of such Act. on the last day of the pregnancy). (A) in subparagraph (B)— SEC. 212. REDUCING ADMINISTRATIVE BARRIERS ‘‘(ii) CHILDREN.—Individuals under 21 years (i) by realigning the left margin of the matter TO ENROLLMENT. of age, including optional targeted low-income preceding clause (i) 2 ems to the left; and Section 2102(b) (42 U.S.C. 1397bb(b)) is amend- children described in section 1905(u)(2)(B). (ii) by realigning the left margins of clauses (i) ed— ‘‘(B) In the case of a State that has elected to and (ii), respectively, 2 ems to the left; and (1) by redesignating paragraph (4) as para- provide medical assistance to a category of (B) in subparagraph (C)— graph (5); and aliens under subparagraph (A), no debt shall (i) by realigning the left margin of the matter (2) by inserting after paragraph (3) the fol- accrue under an affidavit of support against preceding clause (i) 2 ems to the left; and lowing new paragraph: any sponsor of such an alien on the basis of (ii) by realigning the left margins of clauses (i) ‘‘(4) REDUCTION OF ADMINISTRATIVE BARRIERS provision of assistance to such category and the and (ii), respectively, 2 ems to the left. TO ENROLLMENT.— cost of such assistance shall not be considered (c) APPLICATION OF DOCUMENTATION SYSTEM ‘‘(A) IN GENERAL.—Subject to subparagraph as an unreimbursed cost. TO CHIP.— (B), the plan shall include a description of the ‘‘(C) As part of the State’s ongoing eligibility (1) IN GENERAL.—Section 2105(c) (42 U.S.C. procedures used to reduce administrative bar- redetermination requirements and procedures 1397ee(c)), as amended by section 114(a), is riers to the enrollment of children and pregnant for an individual provided medical assistance as amended by adding at the end the following women who are eligible for medical assistance a result of an election by the State under sub- new paragraph: under title XIX or for child health assistance or paragraph (A), a State shall verify that the in- ‘‘(9) CITIZENSHIP DOCUMENTATION REQUIRE- health benefits coverage under this title. Such dividual continues to lawfully reside in the MENTS.— procedures shall be established and revised as United States using the documentation pre- ‘‘(A) IN GENERAL.—No payment may be made often as the State determines appropriate to sented to the State by the individual on initial under this section with respect to an individual take into account the most recent information enrollment. If the State cannot successfully who has, or is, declared to be a citizen or na- available to the State identifying such barriers. verify that the individual is lawfully residing in tional of the United States for purposes of estab- ‘‘(B) DEEMED COMPLIANCE IF JOINT APPLICA- the United States in this manner, it shall require lishing eligibility under this title unless the TION AND RENEWAL PROCESS THAT PERMITS AP- that the individual provide the State with fur- State meets the requirements of section PLICATION OTHER THAN IN PERSON.—A State ther documentation or other evidence to verify 1902(a)(46)(B) with respect to the individual. shall be deemed to comply with subparagraph that the individual is lawfully residing in the ‘‘(B) ENHANCED PAYMENTS.—Notwithstanding (A) if the State’s application and renewal forms United States.’’. subsection (b), the enhanced FMAP with respect and supplemental forms (if any) and informa- (b) CHIP.—Section 2107(e)(1) (42 U.S.C. to payments under subsection (a) for expendi- tion verification process is the same for purposes 1397gg(e)(1)), as amended by sections 203(a)(2)

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and 203(d)(2), is amended by redesignating sub- reimbursement to an employee for out-of-pocket ‘‘(i) IN GENERAL.—A State may establish an paragraphs (E) and (F) as subparagraphs (F) expenditures or, subject to clause (iii), directly employer-family premium assistance purchasing and (G), respectively and by inserting after sub- to the employee’s employer. pool for employers with less than 250 employees paragraph (D) the following new subparagraph: ‘‘(iii) EMPLOYER OPT-OUT.—An employer may who have at least 1 employee who is a pregnant ‘‘(E) Paragraph (4) of section 1903(v) (relating notify a State that it elects to opt-out of being woman eligible for assistance under the State to optional coverage of categories of lawfully re- directly paid a premium assistance subsidy on child health plan (including through the appli- siding immigrant children or pregnant women), behalf of an employee. In the event of such a cation of an option described in section 2112(f)) but only if the State has elected to apply such notification, an employer shall withhold the or a member of a family with at least 1 targeted paragraph with respect to such category of chil- total amount of the employee contribution re- low-income child and to provide a premium as- dren or pregnant women under title XIX.’’. quired for enrollment of the employee and the sistance subsidy under this paragraph for en- TITLE III—REDUCING BARRIERS TO child in the qualified employer-sponsored cov- rollment in coverage made available through PROVIDING PREMIUM ASSISTANCE erage and the State shall pay the premium as- such pool. sistance subsidy directly to the employee. Subtitle A—Additional State Option for ‘‘(ii) ACCESS TO CHOICE OF COVERAGE.—A ‘‘(iv) TREATMENT AS CHILD HEALTH ASSIST- Providing Premium Assistance State that elects the option under clause (i) ANCE.—Expenditures for the provision of pre- shall identify and offer access to not less than SEC. 301. ADDITIONAL STATE OPTION FOR PRO- mium assistance subsidies shall be considered 2 private health plans that are health benefits VIDING PREMIUM ASSISTANCE. child health assistance described in paragraph (a) CHIP.— coverage that is equivalent to the benefits cov- (1)(C) of subsection (a) for purposes of making erage in a benchmark benefit package described (1) IN GENERAL.—Section 2105(c) (42 U.S.C. payments under that subsection. 1397ee(c)), as amended by sections 114(a) and in section 2103(b) or benchmark-equivalent cov- ‘‘(D) APPLICATION OF SECONDARY PAYOR erage that meets the requirements of section 211(c), is amended by adding at the end the fol- RULES.—The State shall be a secondary payor lowing: 2103(a)(2) for employees described in clause (i). for any items or services provided under the ‘‘(iii) CLARIFICATION OF PAYMENT FOR ADMIN- ‘‘(10) STATE OPTION TO OFFER PREMIUM AS- qualified employer-sponsored coverage for which ISTRATIVE EXPENDITURES.—Nothing in this sub- SISTANCE.— the State provides child health assistance under ‘‘(A) IN GENERAL.—A State may elect to offer paragraph shall be construed as permitting pay- the State child health plan. ment under this section for administrative ex- a premium assistance subsidy (as defined in sub- ‘‘(E) REQUIREMENT TO PROVIDE SUPPLE- penditures attributable to the establishment or paragraph (C)) for qualified employer-sponsored MENTAL COVERAGE FOR BENEFITS AND COST- operation of such pool, except to the extent that coverage (as defined in subparagraph (B)) to all SHARING PROTECTION PROVIDED UNDER THE such payment would otherwise be permitted targeted low-income children who are eligible STATE CHILD HEALTH PLAN.— for child health assistance under the plan and ‘‘(i) IN GENERAL.—Notwithstanding section under this title. have access to such coverage in accordance with 2110(b)(1)(C), the State shall provide for each ‘‘(J) NO EFFECT ON PREMIUM ASSISTANCE WAIV- the requirements of this paragraph. No subsidy targeted low-income child enrolled in qualified ER PROGRAMS.—Nothing in this paragraph shall shall be provided to a targeted low-income child employer-sponsored coverage, supplemental cov- be construed as limiting the authority of a State under this paragraph unless the child (or the erage consisting of— to offer premium assistance under section 1906 child’s parent) voluntarily elects to receive such ‘‘(I) items or services that are not covered, or or 1906A, a waiver described in paragraph (2)(B) a subsidy. A State may not require such an elec- are only partially covered, under the qualified or (3), a waiver approved under section 1115, or tion as a condition of receipt of child health as- employer-sponsored coverage; and other authority in effect prior to the date of en- sistance. ‘‘(II) cost-sharing protection consistent with actment of the Children’s Health Insurance Pro- ‘‘(B) QUALIFIED EMPLOYER-SPONSORED COV- section 2103(e). gram Reauthorization Act of 2009. ERAGE.— ‘‘(ii) RECORD KEEPING REQUIREMENTS.—For ‘‘(K) NOTICE OF AVAILABILITY.—If a State ‘‘(i) IN GENERAL.—Subject to clause (ii), in this purposes of carrying out clause (i), a State may elects to provide premium assistance subsidies in paragraph, the term ‘qualified employer-spon- elect to directly pay out-of-pocket expenditures accordance with this paragraph, the State sored coverage’ means a group health plan or for cost-sharing imposed under the qualified em- shall— health insurance coverage offered through an ployer-sponsored coverage and collect or not col- ‘‘(i) include on any application or enrollment employer— lect all or any portion of such expenditures from form for child health assistance a notice of the ‘‘(I) that qualifies as creditable coverage as a the parent of the child. availability of premium assistance subsidies for group health plan under section 2701(c)(1) of the ‘‘(F) APPLICATION OF WAITING PERIOD IM- the enrollment of targeted low-income children Public Health Service Act; POSED UNDER THE STATE.—Any waiting period in qualified employer-sponsored coverage; ‘‘(II) for which the employer contribution to- imposed under the State child health plan prior ‘‘(ii) provide, as part of the application and ward any premium for such coverage is at least to the provision of child health assistance to a enrollment process under the State child health 40 percent; and targeted low-income child under the State plan plan, information describing the availability of ‘‘(III) that is offered to all individuals in a shall apply to the same extent to the provision such subsidies and how to elect to obtain such manner that would be considered a nondiscrim- of a premium assistance subsidy for the child a subsidy; and inatory eligibility classification for purposes of under this paragraph. ‘‘(iii) establish such other procedures as the paragraph (3)(A)(ii) of section 105(h) of the In- ‘‘(G) OPT-OUT PERMITTED FOR ANY MONTH.—A State determines necessary to ensure that par- ternal Revenue Code of 1986 (but determined State shall establish a process for permitting the ents are fully informed of the choices for receiv- without regard to clause (i) of subparagraph (B) parent of a targeted low-income child receiving ing child health assistance under the State child of such paragraph). a premium assistance subsidy to disenroll the health plan or through the receipt of premium ‘‘(ii) EXCEPTION.—Such term does not include child from the qualified employer-sponsored cov- assistance subsidies. coverage consisting of— erage and enroll the child in, and receive child ‘‘(L) APPLICATION TO QUALIFIED EMPLOYER- ‘‘(I) benefits provided under a health flexible health assistance under, the State child health SPONSORED BENCHMARK COVERAGE.—If a group spending arrangement (as defined in section plan, effective on the first day of any month for health plan or health insurance coverage of- 106(c)(2) of the Internal Revenue Code of 1986); which the child is eligible for such assistance fered through an employer is certified by an ac- or and in a manner that ensures continuity of cov- tuary as health benefits coverage that is equiva- ‘‘(II) a high deductible health plan (as de- erage for the child. lent to the benefits coverage in a benchmark fined in section 223(c)(2) of such Code), without ‘‘(H) APPLICATION TO PARENTS.—If a State benefit package described in section 2103(b) or regard to whether the plan is purchased in con- provides child health assistance or health bene- benchmark-equivalent coverage that meets the junction with a health savings account (as de- fits coverage to parents of a targeted low-income requirements of section 2103(a)(2), the State may fined under section 223(d) of such Code). child in accordance with section 2111(b), the provide premium assistance subsidies for enroll- ‘‘(C) PREMIUM ASSISTANCE SUBSIDY.— State may elect to offer a premium assistance ment of targeted low-income children in such ‘‘(i) IN GENERAL.—In this paragraph, the term subsidy to a parent of a targeted low-income group health plan or health insurance coverage ‘premium assistance subsidy’ means, with re- child who is eligible for such a subsidy under in the same manner as such subsidies are pro- spect to a targeted low-income child, the amount this paragraph in the same manner as the State vided under this paragraph for enrollment in equal to the difference between the employee offers such a subsidy for the enrollment of the qualified employer-sponsored coverage, but contribution required for enrollment only of the child in qualified employer-sponsored coverage, without regard to the requirement to provide employee under qualified employer-sponsored except that— supplemental coverage for benefits and cost- coverage and the employee contribution required ‘‘(i) the amount of the premium assistance sharing protection provided under the State for enrollment of the employee and the child in subsidy shall be increased to take into account child health plan under subparagraph (E). such coverage, less any applicable premium the cost of the enrollment of the parent in the ‘‘(M) SATISFACTION OF COST-EFFECTIVENESS cost-sharing applied under the State child qualified employer-sponsored coverage or, at the TEST.—Premium assistance subsidies for quali- health plan (subject to the limitations imposed option of the State if the State determines it fied employer-sponsored coverage offered under under section 2103(e), including the requirement cost-effective, the cost of the enrollment of the this paragraph shall be deemed to meet the re- to count the total amount of the employee con- child’s family in such coverage; and quirement of subparagraph (A) of paragraph tribution required for enrollment of the em- ‘‘(ii) any reference in this paragraph to a (3). ployee and the child in such coverage toward child is deemed to include a reference to the par- ‘‘(N) COORDINATION WITH MEDICAID.—In the the annual aggregate cost-sharing limit applied ent or, if applicable under clause (i), the family case of a targeted low-income child who receives under paragraph (3)(B) of such section). of the child. child health assistance through a State plan ‘‘(ii) STATE PAYMENT OPTION.—A State may ‘‘(I) ADDITIONAL STATE OPTION FOR PROVIDING under title XIX and who voluntarily elects to provide a premium assistance subsidy either as PREMIUM ASSISTANCE.— receive a premium assistance subsidy under this

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section, the provisions of section 1906A shall ‘‘(1) EMPLOYERS.—Participation by an em- THIS TITLE AND TITLE xix THROUGH PREMIUM AS- apply and shall supersede any other provisions ployer in a premium assistance subsidy offered SISTANCE SUBSIDIES.—Expenditures for outreach of this paragraph that are inconsistent with by a State under this section shall be voluntary. activities to families of children likely to be eli- such section.’’. An employer may notify a State that it elects to gible for premium assistance subsidies in accord- (2) DETERMINATION OF COST-EFFECTIVENESS opt-out of being directly paid a premium assist- ance with paragraph (2)(B), (3), or (10), or a FOR PREMIUM ASSISTANCE OR PURCHASE OF FAM- ance subsidy on behalf of an employee. waiver approved under section 1115, to inform ILY COVERAGE.— ‘‘(2) BENEFICIARIES.—No subsidy shall be pro- such families of the availability of, and to assist (A) IN GENERAL.—Section 2105(c)(3)(A) (42 vided to an individual under age 19 under this them in enrolling their children in, such sub- U.S.C. 1397ee(c)(3)(A)) is amended by striking section unless the individual (or the individual’s sidies, and to employers likely to provide quali- ‘‘relative to’’ and all that follows through the parent) voluntarily elects to receive such a sub- fied employer-sponsored coverage (as defined in comma and inserting ‘‘relative to sidy. A State may not require such an election subparagraph (B) of such paragraph), but not ‘‘(i) the amount of expenditures under the as a condition of receipt of medical assistance. to exceed an amount equal to 1.25 percent of the State child health plan, including administra- State may not require, as a condition of an indi- maximum amount permitted to be expended tive expenditures, that the State would have vidual under age 19 (or the individual’s parent) under subparagraph (A) for items described in made to provide comparable coverage of the tar- being or remaining eligible for medical assist- subsection (a)(1)(D).’’. geted low-income child involved or the family ance under this title, apply for enrollment in qualified employer-sponsored coverage under Subtitle B—Coordinating Premium Assistance involved (as applicable); or With Private Coverage ‘‘(ii) the aggregate amount of expenditures this section. that the State would have made under the State ‘‘(3) OPT-OUT PERMITTED FOR ANY MONTH.—A SEC. 311. SPECIAL ENROLLMENT PERIOD UNDER child health plan, including administrative ex- State shall establish a process for permitting the GROUP HEALTH PLANS IN CASE OF penditures, for providing coverage under such parent of an individual under age 19 receiving a TERMINATION OF MEDICAID OR premium assistance subsidy to disenroll the indi- CHIP COVERAGE OR ELIGIBILITY plan for all such children or families.’’. vidual from the qualified employer-sponsored FOR ASSISTANCE IN PURCHASE OF (B) NONAPPLICATION TO PREVIOUSLY AP- coverage. EMPLOYMENT-BASED COVERAGE; PROVED COVERAGE.—The amendment made by COORDINATION OF COVERAGE. ‘‘(e) REQUIREMENT TO PAY PREMIUMS AND subparagraph (A) shall not apply to coverage COST-SHARING AND PROVIDE SUPPLEMENTAL (a) AMENDMENTS TO INTERNAL REVENUE CODE the purchase of which has been approved by the COVERAGE.—In the case of the participation of OF 1986.—Section 9801(f) of the Internal Rev- Secretary under section 2105(c)(3) of the Social an individual under age 19 (or the individual’s enue Code of 1986 (relating to special enrollment Security Act prior to the date of enactment of parent) in a premium assistance subsidy under periods) is amended by adding at the end the this Act. this section for qualified employer-sponsored following new paragraph: EDICAID (b) M .—Title XIX is amended by in- coverage, the State shall provide for payment of ‘‘(3) SPECIAL RULES RELATING TO MEDICAID serting after section 1906 the following new sec- all enrollee premiums for enrollment in such AND CHIP.— tion: coverage and all deductibles, coinsurance, and ‘‘(A) IN GENERAL.—A group health plan shall ‘‘PREMIUM ASSISTANCE OPTION FOR CHILDREN other cost-sharing obligations for items and permit an employee who is eligible, but not en- ‘‘SEC. 1906A. (a) IN GENERAL.—A State may services otherwise covered under the State plan rolled, for coverage under the terms of the plan elect to offer a premium assistance subsidy (as under this title (exceeding the amount otherwise (or a dependent of such an employee if the de- defined in subsection (c)) for qualified employer- permitted under section 1916 or, if applicable, pendent is eligible, but not enrolled, for cov- sponsored coverage (as defined in subsection section 1916A). The fact that an individual erage under such terms) to enroll for coverage (b)) to all individuals under age 19 who are enti- under age 19 (or a parent) elects to enroll in under the terms of the plan if either of the fol- tled to medical assistance under this title (and qualified employer-sponsored coverage under lowing conditions is met: this section shall not change the individual’s (or to the parent of such an individual) who have ‘‘(i) TERMINATION OF MEDICAID OR CHIP COV- parent’s) eligibility for medical assistance under access to such coverage if the State meets the re- ERAGE.—The employee or dependent is covered quirements of this section. the State plan, except insofar as section under a Medicaid plan under title XIX of the ‘‘(b) QUALIFIED EMPLOYER-SPONSORED COV- 1902(a)(25) provides that payments for such as- Social Security Act or under a State child health ERAGE.— sistance shall first be made under such cov- plan under title XXI of such Act and coverage erage.’’. ‘‘(1) IN GENERAL.—Subject to paragraph (2)), of the employee or dependent under such a plan (c) GAO STUDY AND REPORT.—Not later than in this paragraph, the term ‘qualified employer- is terminated as a result of loss of eligibility for sponsored coverage’ means a group health plan January 1, 2010, the Comptroller General of the United States shall study cost and coverage such coverage and the employee requests cov- or health insurance coverage offered through an erage under the group health plan not later employer— issues relating to any State premium assistance programs for which Federal matching payments than 60 days after the date of termination of ‘‘(A) that qualifies as creditable coverage as a such coverage. group health plan under section 2701(c)(1) of the are made under title XIX or XXI of the Social ‘‘(ii) ELIGIBILITY FOR EMPLOYMENT ASSISTANCE Public Health Service Act; Security Act, including under waiver authority, UNDER MEDICAID OR CHIP.—The employee or de- ‘‘(B) for which the employer contribution to- and shall submit a report to the Committee on pendent becomes eligible for assistance, with re- ward any premium for such coverage is at least Finance of the Senate and the Committee on spect to coverage under the group health plan 40 percent; and Energy and Commerce of the House of Rep- under such Medicaid plan or State child health ‘‘(C) that is offered to all individuals in a resentatives on the results of such study. plan (including under any waiver or demonstra- manner that would be considered a nondiscrim- SEC. 302. OUTREACH, EDUCATION, AND ENROLL- tion project conducted under or in relation to inatory eligibility classification for purposes of MENT ASSISTANCE. such a plan), if the employee requests coverage paragraph (3)(A)(ii) of section 105(h) of the In- (a) REQUIREMENT TO INCLUDE DESCRIPTION OF under the group health plan not later than 60 ternal Revenue Code of 1986 (but determined OUTREACH, EDUCATION, AND ENROLLMENT EF- days after the date the employee or dependent is without regard to clause (i) of subparagraph (B) FORTS RELATED TO PREMIUM ASSISTANCE SUB- determined to be eligible for such assistance. of such paragraph). SIDIES IN STATE CHILD HEALTH PLAN.—Section 2102(c) (42 U.S.C. 1397bb(c)) is amended by add- MPLOYEE OUTREACH AND DISCLOSURE ‘‘(2) EXCEPTION.—Such term does not include ‘‘(B) E .— ing at the end the following new paragraph: coverage consisting of— ‘‘(i) OUTREACH TO EMPLOYEES REGARDING ‘‘(3) PREMIUM ASSISTANCE SUBSIDIES.—In the ‘‘(A) benefits provided under a health flexible AVAILABILITY OF MEDICAID AND CHIP COV- case of a State that provides for premium assist- ERAGE.— spending arrangement (as defined in section ance subsidies under the State child health plan ‘‘(I) IN GENERAL.—Each employer that main- 106(c)(2) of the Internal Revenue Code of 1986); in accordance with paragraph (2)(B), (3), or (10) tains a group health plan in a State that pro- or of section 2105(c), or a waiver approved under vides medical assistance under a State Medicaid ‘‘(B) a high deductible health plan (as defined section 1115, outreach, education, and enroll- plan under title XIX of the Social Security Act, in section 223(c)(2) of such Code), without re- ment assistance for families of children likely to or child health assistance under a State child gard to whether the plan is purchased in con- be eligible for such subsidies, to inform such health plan under title XXI of such Act, in the junction with a health savings account (as de- families of the availability of, and to assist them form of premium assistance for the purchase of fined under section 223(d) of such Code). in enrolling their children in, such subsidies, coverage under a group health plan, shall pro- ‘‘(3) TREATMENT AS THIRD PARTY LIABILITY.— and for employers likely to provide coverage The State shall treat the coverage provided that is eligible for such subsidies, including the vide to each employee a written notice informing under qualified employer-sponsored coverage as specific, significant resources the State intends the employee of potential opportunities then a third party liability under section 1902(a)(25). to apply to educate employers about the avail- currently available in the State in which the ‘‘(c) PREMIUM ASSISTANCE SUBSIDY.—In this ability of premium assistance subsidies under employee resides for premium assistance under section, the term ‘premium assistance subsidy’ the State child health plan.’’. such plans for health coverage of the employee means the amount of the employee contribution (b) NONAPPLICATION OF 10 PERCENT LIMIT ON or the employee’s dependents. For purposes of for enrollment in the qualified employer-spon- OUTREACH AND CERTAIN OTHER EXPENDI- compliance with this clause, the employer may sored coverage by the individual under age 19 or TURES.—Section 2105(c)(2)(C) (42 U.S.C. use any State-specific model notice developed in by the individual’s family. Premium assistance 1397ee(c)(2)(C)), as amended by section 211(c)(2), accordance with section 701(f)(3)(B)(i)(II) of the subsidies under this section shall be considered, is amended by adding at the end the following Employee Retirement Income Security Act of for purposes of section 1903(a), to be a payment new clause: 1974 (29 U.S.C. 1181(f)(3)(B)(i)(II)). for medical assistance. ‘‘(iii) EXPENDITURES FOR OUTREACH TO IN- ‘‘(II) OPTION TO PROVIDE CONCURRENT WITH ‘‘(d) VOLUNTARY PARTICIPATION.— CREASE THE ENROLLMENT OF CHILDREN UNDER PROVISION OF PLAN MATERIALS TO EMPLOYEE.—

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00118 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.024 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1221 An employer may provide the model notice ap- vides medical assistance under a State Medicaid retary of Labor shall jointly establish a Med- plicable to the State in which an employee re- plan under title XIX of the Social Security Act, icaid, CHIP, and Employer-Sponsored Coverage sides concurrent with the furnishing of mate- or child health assistance under a State child Coordination Working Group (in this subpara- rials notifying the employee of health plan eligi- health plan under title XXI of such Act, in the graph referred to as the ‘‘Working Group’’). The bility, concurrent with materials provided to the form of premium assistance for the purchase of purpose of the Working Group shall be to de- employee in connection with an open season or coverage under a group health plan, shall pro- velop the model coverage coordination disclosure election process conducted under the plan, or vide to each employee a written notice informing form described in subclause (II) and to identify concurrent with the furnishing of the summary the employee of potential opportunities then the impediments to the effective coordination of plan description as provided in section 104(b) of currently available in the State in which the coverage available to families that include em- the Employee Retirement Income Security Act of employee resides for premium assistance under ployees of employers that maintain group health 1974 (29 U.S.C. 1024). such plans for health coverage of the employee plans and members who are eligible for medical ‘‘(ii) DISCLOSURE ABOUT GROUP HEALTH PLAN or the employee’s dependents. assistance under title XIX of the Social Security BENEFITS TO STATES FOR MEDICAID AND CHIP ELI- ‘‘(II) MODEL NOTICE.—Not later than 1 year Act or child health assistance or other health GIBLE INDIVIDUALS.—In the case of a participant after the date of enactment of the Children’s benefits coverage under title XXI of such Act. or beneficiary of a group health plan who is Health Insurance Program Reauthorization Act (II) MODEL COVERAGE COORDINATION DISCLO- covered under a Medicaid plan of a State under of 2009, the Secretary and the Secretary of SURE FORM DESCRIBED.—The model form de- title XIX of the Social Security Act or under a Health and Human Services, in consultation scribed in this subclause is a form for plan ad- State child health plan under title XXI of such with Directors of State Medicaid agencies under ministrators of group health plans to complete Act, the plan administrator of the group health title XIX of the Social Security Act and Direc- for purposes of permitting a State to determine plan shall disclose to the State, upon request, tors of State CHIP agencies under title XXI of the availability and cost-effectiveness of the information about the benefits available under such Act, shall jointly develop national and coverage available under such plans to employ- the group health plan in sufficient specificity, State-specific model notices for purposes of sub- ees who have family members who are eligible as determined under regulations of the Sec- paragraph (A). The Secretary shall provide em- for premium assistance offered under a State retary of Health and Human Services in con- ployers with such model notices so as to enable plan under title XIX or XXI of such Act and to sultation with the Secretary that require use of employers to timely comply with the require- allow for coordination of coverage for enrollees the model coverage coordination disclosure form ments of subparagraph (A). Such model notices of such plans. Such form shall provide the fol- developed under section 311(b)(1)(C) of the Chil- shall include information regarding how an em- lowing information in addition to such other in- dren’s Health Insurance Program Reauthoriza- ployee may contact the State in which the em- formation as the Working Group determines ap- tion Act of 2009, so as to permit the State to ployee resides for additional information regard- propriate: make a determination (under paragraph (2)(B), ing potential opportunities for such premium as- (aa) A determination of whether the employee (3), or (10) of section 2105(c) of the Social Secu- sistance, including how to apply for such assist- is eligible for coverage under the group health rity Act or otherwise) concerning the cost-effec- ance. plan. tiveness of the State providing medical or child ‘‘(III) OPTION TO PROVIDE CONCURRENT WITH (bb) The name and contract information of health assistance through premium assistance PROVISION OF PLAN MATERIALS TO EMPLOYEE.— the plan administrator of the group health plan. for the purchase of coverage under such group An employer may provide the model notice ap- (cc) The benefits offered under the plan. health plan and in order for the State to provide plicable to the State in which an employee re- (dd) The premiums and cost-sharing required supplemental benefits required under paragraph sides concurrent with the furnishing of mate- under the plan. (10)(E) of such section or other authority.’’. rials notifying the employee of health plan eligi- (ee) Any other information relevant to cov- (b) CONFORMING AMENDMENTS.— bility, concurrent with materials provided to the erage under the plan. (1) AMENDMENTS TO EMPLOYEE RETIREMENT employee in connection with an open season or (ii) MEMBERSHIP.—The Working Group shall INCOME SECURITY ACT.— election process conducted under the plan, or consist of not more than 30 members and shall (A) IN GENERAL.—Section 701(f) of the Em- concurrent with the furnishing of the summary be composed of representatives of— ployee Retirement Income Security Act of 1974 plan description as provided in section 104(b). (I) the Department of Labor; (29 U.S.C. 1181(f)) is amended by adding at the ‘‘(ii) DISCLOSURE ABOUT GROUP HEALTH PLAN (II) the Department of Health and Human end the following new paragraph: BENEFITS TO STATES FOR MEDICAID AND CHIP ELI- Services; ‘‘(3) SPECIAL RULES FOR APPLICATION IN CASE GIBLE INDIVIDUALS.—In the case of a participant (III) State directors of the Medicaid program OF MEDICAID AND CHIP.— or beneficiary of a group health plan who is under title XIX of the Social Security Act; ‘‘(A) IN GENERAL.—A group health plan, and covered under a Medicaid plan of a State under (IV) State directors of the State Children’s a health insurance issuer offering group health title XIX of the Social Security Act or under a Health Insurance Program under title XXI of insurance coverage in connection with a group State child health plan under title XXI of such the Social Security Act; health plan, shall permit an employee who is el- Act, the plan administrator of the group health (V) employers, including owners of small busi- igible, but not enrolled, for coverage under the plan shall disclose to the State, upon request, nesses and their trade or industry representa- terms of the plan (or a dependent of such an em- information about the benefits available under tives and certified human resource and payroll ployee if the dependent is eligible, but not en- the group health plan in sufficient specificity, professionals; rolled, for coverage under such terms) to enroll as determined under regulations of the Sec- (VI) plan administrators and plan sponsors of for coverage under the terms of the plan if ei- retary of Health and Human Services in con- group health plans (as defined in section 607(1) ther of the following conditions is met: sultation with the Secretary that require use of of the Employee Retirement Income Security Act ‘‘(i) TERMINATION OF MEDICAID OR CHIP COV- the model coverage coordination disclosure form of 1974); ERAGE.—The employee or dependent is covered developed under section 311(b)(1)(C) of the Chil- (VII) health insurance issuers; and under a Medicaid plan under title XIX of the dren’s Health Insurance Program Reauthoriza- (VIII) children and other beneficiaries of med- Social Security Act or under a State child health tion Act of 2009, so as to permit the State to ical assistance under title XIX of the Social Se- plan under title XXI of such Act and coverage make a determination (under paragraph (2)(B), curity Act or child health assistance or other of the employee or dependent under such a plan (3), or (10) of section 2105(c) of the Social Secu- health benefits coverage under title XXI of such is terminated as a result of loss of eligibility for rity Act or otherwise) concerning the cost-effec- Act. such coverage and the employee requests cov- tiveness of the State providing medical or child (iii) COMPENSATION.—The members of the erage under the group health plan (or health in- health assistance through premium assistance Working Group shall serve without compensa- surance coverage) not later than 60 days after for the purchase of coverage under such group tion. the date of termination of such coverage. health plan and in order for the State to provide (iv) ADMINISTRATIVE SUPPORT.—The Depart- ‘‘(ii) ELIGIBILITY FOR EMPLOYMENT ASSISTANCE supplemental benefits required under paragraph ment of Health and Human Services and the De- UNDER MEDICAID OR CHIP.—The employee or de- (10)(E) of such section or other authority.’’. partment of Labor shall jointly provide appro- pendent becomes eligible for assistance, with re- (B) CONFORMING AMENDMENT.—Section 102(b) priate administrative support to the Working spect to coverage under the group health plan of the Employee Retirement Income Security Act Group, including technical assistance. The or health insurance coverage, under such Med- of 1974 (29 U.S.C. 1022(b)) is amended— Working Group may use the services and facili- icaid plan or State child health plan (including (i) by striking ‘‘and the remedies’’ and insert- ties of either such Department, with or without under any waiver or demonstration project con- ing ‘‘, the remedies’’; and reimbursement, as jointly determined by such ducted under or in relation to such a plan), if (ii) by inserting before the period the fol- Departments. the employee requests coverage under the group lowing: ‘‘, and if the employer so elects for pur- (v) REPORT.— health plan or health insurance coverage not poses of complying with section 701(f)(3)(B)(i), (I) REPORT BY WORKING GROUP TO THE SECRE- later than 60 days after the date the employee or the model notice applicable to the State in TARIES.—Not later than 18 months after the date dependent is determined to be eligible for such which the participants and beneficiaries re- of the enactment of this Act, the Working Group assistance. side’’. shall submit to the Secretary of Labor and the ‘‘(B) COORDINATION WITH MEDICAID AND (C) WORKING GROUP TO DEVELOP MODEL COV- Secretary of Health and Human Services the CHIP.— ERAGE COORDINATION DISCLOSURE FORM.— model form described in clause (i)(II) along with ‘‘(i) OUTREACH TO EMPLOYEES REGARDING (i) MEDICAID, CHIP, AND EMPLOYER-SPONSORED a report containing recommendations for appro- AVAILABILITY OF MEDICAID AND CHIP COV- COVERAGE COORDINATION WORKING GROUP.— priate measures to address the impediments to ERAGE.— (I) IN GENERAL.—Not later than 60 days after the effective coordination of coverage between ‘‘(I) IN GENERAL.—Each employer that main- the date of enactment of this Act, the Secretary group health plans and the State plans under tains a group health plan in a State that pro- of Health and Human Services and the Sec- titles XIX and XXI of the Social Security Act.

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(II) REPORT BY SECRETARIES TO THE CON- ducted under or in relation to such a plan), if for general comment an initial, recommended GRESS.—Not later than 2 months after receipt of the employee requests coverage under the group core set of child health quality measures for use the report pursuant to subclause (I), the Secre- health plan or health insurance coverage not by State programs administered under titles XIX taries shall jointly submit a report to each later than 60 days after the date the employee or and XXI, health insurance issuers and managed House of the Congress regarding the rec- dependent is determined to be eligible for such care entities that enter into contracts with such ommendations contained in the report under assistance. programs, and providers of items and services such subclause. ‘‘(B) COORDINATION WITH MEDICAID AND under such programs. (vi) TERMINATION.—The Working Group shall CHIP.— ‘‘(2) IDENTIFICATION OF INITIAL CORE MEAS- terminate 30 days after the date of the issuance ‘‘(i) OUTREACH TO EMPLOYEES REGARDING URES.—In consultation with the individuals and of its report under clause (v). AVAILABILITY OF MEDICAID AND CHIP COV- entities described in subsection (b)(3), the Sec- (D) EFFECTIVE DATES.—The Secretary of ERAGE.— retary shall identify existing quality of care Labor and the Secretary of Health and Human ‘‘(I) IN GENERAL.—Each employer that main- measures for children that are in use under pub- Services shall develop the initial model notices tains a group health plan in a State that pro- lic and privately sponsored health care coverage under section 701(f)(3)(B)(i)(II) of the Employee vides medical assistance under a State Medicaid arrangements, or that are part of reporting sys- Retirement Income Security Act of 1974, and the plan under title XIX of the Social Security Act, tems that measure both the presence and dura- Secretary of Labor shall provide such notices to or child health assistance under a State child tion of health insurance coverage over time. employers, not later than the date that is 1 year health plan under title XXI of such Act, in the ‘‘(3) RECOMMENDATIONS AND DISSEMINATION.— after the date of enactment of this Act, and form of premium assistance for the purchase of Based on such existing and identified measures, each employer shall provide the initial annual coverage under a group health plan, shall pro- the Secretary shall publish an initial core set of notices to such employer’s employees beginning vide to each employee a written notice informing child health quality measures that includes (but with the first plan year that begins after the the employee of potential opportunities then is not limited to) the following: date on which such initial model notices are currently available in the State in which the ‘‘(A) The duration of children’s health insur- first issued. The model coverage coordination employee resides for premium assistance under ance coverage over a 12-month time period. ‘‘(B) The availability and effectiveness of a disclosure form developed under subparagraph such plans for health coverage of the employee full range of— (C) shall apply with respect to requests made by or the employee’s dependents. For purposes of ‘‘(i) preventive services, treatments, and serv- States beginning with the first plan year that compliance with this subclause, the employer ices for acute conditions, including services to begins after the date on which such model cov- may use any State-specific model notice devel- promote healthy birth, prevent and treat pre- erage coordination disclosure form is first oped in accordance with section mature birth, and detect the presence or risk of issued. 701(f)(3)(B)(i)(II) of the Employee Retirement physical or mental conditions that could ad- (E) ENFORCEMENT.—Section 502 of the Em- Income Security Act of 1974 (29 U.S.C. versely affect growth and development; and ployee Retirement Income Security Act of 1974 1181(f)(3)(B)(i)(II)). ‘‘(ii) treatments to correct or ameliorate the ef- (29 U.S.C. 1132) is amended— ‘‘(II) OPTION TO PROVIDE CONCURRENT WITH fects of physical and mental conditions, includ- (i) in subsection (a)(6), by striking ‘‘or (8)’’ PROVISION OF PLAN MATERIALS TO EMPLOYEE.— ing chronic conditions, in infants, young chil- and inserting ‘‘(8), or (9)’’; and An employer may provide the model notice ap- dren, school-age children, and adolescents. (ii) in subsection (c), by redesignating para- plicable to the State in which an employee re- ‘‘(C) The availability of care in a range of am- graph (9) as paragraph (10), and by inserting sides concurrent with the furnishing of mate- bulatory and inpatient health care settings in after paragraph (8) the following: rials notifying the employee of health plan eligi- which such care is furnished. ‘‘(9)(A) The Secretary may assess a civil pen- bility, concurrent with materials provided to the ‘‘(D) The types of measures that, taken to- alty against any employer of up to $100 a day employee in connection with an open season or gether, can be used to estimate the overall na- from the date of the employer’s failure to meet election process conducted under the plan, or tional quality of health care for children, in- the notice requirement of section concurrent with the furnishing of the summary cluding children with special needs, and to per- 701(f)(3)(B)(i)(I). For purposes of this subpara- plan description as provided in section 104(b) of form comparative analyses of pediatric health graph, each violation with respect to any single the Employee Retirement Income Security Act of care quality and racial, ethnic, and socio- employee shall be treated as a separate viola- 1974. economic disparities in child health and health tion. ‘‘(ii) DISCLOSURE ABOUT GROUP HEALTH PLAN care for children. ‘‘(B) The Secretary may assess a civil penalty BENEFITS TO STATES FOR MEDICAID AND CHIP ELI- ‘‘(4) ENCOURAGE VOLUNTARY AND STANDARD- against any plan administrator of up to $100 a GIBLE INDIVIDUALS.—In the case of an enrollee IZED REPORTING.—Not later than 2 years after day from the date of the plan administrator’s in a group health plan who is covered under a the date of enactment of the Children’s Health failure to timely provide to any State the infor- Medicaid plan of a State under title XIX of the Insurance Program Reauthorization Act of 2009, mation required to be disclosed under section Social Security Act or under a State child health the Secretary, in consultation with States, shall 701(f)(3)(B)(ii). For purposes of this subpara- plan under title XXI of such Act, the plan ad- develop a standardized format for reporting in- graph, each violation with respect to any single ministrator of the group health plan shall dis- formation and procedures and approaches that participant or beneficiary shall be treated as a close to the State, upon request, information encourage States to use the initial core measure- separate violation.’’. about the benefits available under the group ment set to voluntarily report information re- (2) AMENDMENTS TO PUBLIC HEALTH SERVICE health plan in sufficient specificity, as deter- garding the quality of pediatric health care ACT.—Section 2701(f) of the Public Health Serv- mined under regulations of the Secretary of under titles XIX and XXI. ice Act (42 U.S.C. 300gg(f)) is amended by add- Health and Human Services in consultation ‘‘(5) ADOPTION OF BEST PRACTICES IN IMPLE- ing at the end the following new paragraph: with the Secretary that require use of the model MENTING QUALITY PROGRAMS.—The Secretary ‘‘(3) SPECIAL RULES FOR APPLICATION IN CASE coverage coordination disclosure form developed shall disseminate information to States regard- OF MEDICAID AND CHIP.— under section 311(b)(1)(C) of the Children’s ing best practices among States with respect to ‘‘(A) IN GENERAL.—A group health plan, and Health Insurance Reauthorization Act of 2009, measuring and reporting on the quality of a health insurance issuer offering group health so as to permit the State to make a determina- health care for children, and shall facilitate the insurance coverage in connection with a group tion (under paragraph (2)(B), (3), or (10) of sec- adoption of such best practices. In developing health plan, shall permit an employee who is el- tion 2105(c) of the Social Security Act or other- best practices approaches, the Secretary shall igible, but not enrolled, for coverage under the wise) concerning the cost-effectiveness of the give particular attention to State measurement terms of the plan (or a dependent of such an em- State providing medical or child health assist- techniques that ensure the timeliness and accu- ployee if the dependent is eligible, but not en- ance through premium assistance for the pur- racy of provider reporting, encourage provider rolled, for coverage under such terms) to enroll chase of coverage under such group health plan reporting compliance, encourage successful for coverage under the terms of the plan if ei- and in order for the State to provide supple- quality improvement strategies, and improve ef- ther of the following conditions is met: mental benefits required under paragraph ficiency in data collection using health informa- ‘‘(i) TERMINATION OF MEDICAID OR CHIP COV- (10)(E) of such section or other authority.’’. tion technology. ERAGE.—The employee or dependent is covered ‘‘(6) REPORTS TO CONGRESS.—Not later than TITLE IV—STRENGTHENING QUALITY OF under a Medicaid plan under title XIX of the January 1, 2011, and every 3 years thereafter, CARE AND HEALTH OUTCOMES Social Security Act or under a State child health the Secretary shall report to Congress on— plan under title XXI of such Act and coverage SEC. 401. CHILD HEALTH QUALITY IMPROVEMENT ‘‘(A) the status of the Secretary’s efforts to im- of the employee or dependent under such a plan ACTIVITIES FOR CHILDREN EN- prove— is terminated as a result of loss of eligibility for ROLLED IN MEDICAID OR CHIP. ‘‘(i) quality related to the duration and sta- such coverage and the employee requests cov- (a) DEVELOPMENT OF CHILD HEALTH QUALITY bility of health insurance coverage for children erage under the group health plan (or health in- MEASURES FOR CHILDREN ENROLLED IN MED- under titles XIX and XXI; surance coverage) not later than 60 days after ICAID OR CHIP.—Title XI (42 U.S.C. 1301 et seq.) ‘‘(ii) the quality of children’s health care the date of termination of such coverage. is amended by inserting after section 1139 the under such titles, including preventive health ‘‘(ii) ELIGIBILITY FOR EMPLOYMENT ASSISTANCE following new section: services, health care for acute conditions, UNDER MEDICAID OR CHIP.—The employee or de- ‘‘SEC. 1139A. CHILD HEALTH QUALITY MEASURES. chronic health care, and health services to ame- pendent becomes eligible for assistance, with re- ‘‘(a) DEVELOPMENT OF AN INITIAL CORE SET liorate the effects of physical and mental condi- spect to coverage under the group health plan OF HEALTH CARE QUALITY MEASURES FOR CHIL- tions and to aid in growth and development of or health insurance coverage, under such Med- DREN ENROLLED IN MEDICAID OR CHIP.— infants, young children, school-age children, icaid plan or State child health plan (including ‘‘(1) IN GENERAL.—Not later than January 1, and adolescents with special health care needs; under any waiver or demonstration project con- 2010, the Secretary shall identify and publish and

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‘‘(iii) the quality of children’s health care ‘‘(D) health care providers that furnish pri- AND THE USE OF HEALTH INFORMATION TECH- under such titles across the domains of quality, mary health care to children and families who NOLOGY.— including clinical quality, health care safety, live in urban and rural medically underserved ‘‘(1) IN GENERAL.—During the period of fiscal family experience with health care, health care communities or who are members of distinct pop- years 2009 through 2013, the Secretary shall in the most integrated setting, and elimination ulation sub-groups at heightened risk for poor award not more than 10 grants to States and of racial, ethnic, and socioeconomic disparities health outcomes; child health providers to conduct demonstration in health and health care; ‘‘(E) national organizations representing chil- projects to evaluate promising ideas for improv- ‘‘(B) the status of voluntary reporting by dren, including children with disabilities and ing the quality of children’s health care pro- States under titles XIX and XXI, utilizing the children with chronic conditions; vided under title XIX or XXI, including projects initial core quality measurement set; and ‘‘(F) national organizations representing con- to— ‘‘(C) any recommendations for legislative sumers and purchasers of children’s health care; ‘‘(A) experiment with, and evaluate the use changes needed to improve the quality of care ‘‘(G) national organizations and individuals of, new measures of the quality of children’s provided to children under titles XIX and XXI, with expertise in pediatric health quality meas- health care under such titles (including testing including recommendations for quality reporting urement; and the validity and suitability for reporting of such by States. ‘‘(H) voluntary consensus standards setting measures); ‘‘(7) TECHNICAL ASSISTANCE.—The Secretary organizations and other organizations involved ‘‘(B) promote the use of health information shall provide technical assistance to States to in the advancement of evidence-based measures technology in care delivery for children under assist them in adopting and utilizing core child of health care. such titles; health quality measures in administering the ‘‘(4) DEVELOPING, VALIDATING, AND TESTING A ‘‘(C) evaluate provider-based models which State plans under titles XIX and XXI. PORTFOLIO OF PEDIATRIC QUALITY MEASURES.— improve the delivery of children’s health care ‘‘(8) DEFINITION OF CORE SET.—In this section, As part of the program to advance pediatric services under such titles, including care man- the term ‘core set’ means a group of valid, reli- quality measures, the Secretary shall— agement for children with chronic conditions able, and evidence-based quality measures that, ‘‘(A) award grants and contracts for the de- and the use of evidence-based approaches to im- taken together— velopment, testing, and validation of new, prove the effectiveness, safety, and efficiency of ‘‘(A) provide information regarding the qual- emerging, and innovative evidence-based meas- health care services for children; or ity of health coverage and health care for chil- ures for children’s health care services across ‘‘(D) demonstrate the impact of the model dren; the domains of quality described in clauses (i), electronic health record format for children de- ‘‘(B) address the needs of children throughout (ii), and (iii) of subsection (a)(6)(A); and veloped and disseminated under subsection (f) the developmental age span; and ‘‘(B) award grants and contracts for— on improving pediatric health, including the ef- ‘‘(C) allow purchasers, families, and health ‘‘(i) the development of consensus on evi- fects of chronic childhood health conditions, care providers to understand the quality of care dence-based measures for children’s health care and pediatric health care quality as well as re- in relation to the preventive needs of children, services; ducing health care costs. treatments aimed at managing and resolving ‘‘(ii) the dissemination of such measures to ‘‘(2) REQUIREMENTS.—In awarding grants acute conditions, and diagnostic and treatment public and private purchasers of health care for under this subsection, the Secretary shall ensure services whose purpose is to correct or amelio- children; and that— rate physical, mental, or developmental condi- ‘‘(iii) the updating of such measures as nec- ‘‘(A) only 1 demonstration project funded tions that could, if untreated or poorly treated, essary. under a grant awarded under this subsection EVISING, STRENGTHENING, AND IMPROV- become chronic. ‘‘(5) R shall be conducted in a State; and ‘‘(b) ADVANCING AND IMPROVING PEDIATRIC ING INITIAL CORE MEASURES.—Beginning no later ‘‘(B) demonstration projects funded under QUALITY MEASURES.— than January 1, 2013, and annually thereafter, grants awarded under this subsection shall be ‘‘(1) ESTABLISHMENT OF PEDIATRIC QUALITY the Secretary shall publish recommended conducted evenly between States with large MEASURES PROGRAM.—Not later than January 1, changes to the core measures described in sub- urban areas and States with large rural areas. 2011, the Secretary shall establish a pediatric section (a) that shall reflect the testing, valida- ‘‘(3) AUTHORITY FOR MULTISTATE PROJECTS.— quality measures program to— tion, and consensus process for the development A demonstration project conducted with a grant ‘‘(A) improve and strengthen the initial core of pediatric quality measures described in sub- awarded under this subsection may be con- child health care quality measures established section paragraphs (1) through (4). ducted on a multistate basis, as needed. by the Secretary under subsection (a); ‘‘(6) DEFINITION OF PEDIATRIC QUALITY MEAS- ‘‘(4) FUNDING.—$20,000,000 of the amount ap- ‘‘(B) expand on existing pediatric quality URE.—In this subsection, the term ‘pediatric propriated under subsection (i) for a fiscal year measures used by public and private health care quality measure’ means a measurement of clin- shall be used to carry out this subsection. purchasers and advance the development of ical care that is capable of being examined ‘‘(e) CHILDHOOD OBESITY DEMONSTRATION such new and emerging quality measures; and through the collection and analysis of relevant PROJECT.— ‘‘(1) AUTHORITY TO CONDUCT DEMONSTRA- ‘‘(C) increase the portfolio of evidence-based, information, that is developed in order to assess TION.—The Secretary, in consultation with the consensus pediatric quality measures available 1 or more aspects of pediatric health care qual- Administrator of the Centers for Medicare & to public and private purchasers of children’s ity in various institutional and ambulatory Medicaid Services, shall conduct a demonstra- health care services, providers, and consumers. health care settings, including the structure of ‘‘(2) EVIDENCE-BASED MEASURES.—The meas- the clinical care system, the process of care, the tion project to develop a comprehensive and sys- ures developed under the pediatric quality meas- outcome of care, or patient experiences in care. tematic model for reducing childhood obesity by ures program shall, at a minimum, be— ‘‘(7) CONSTRUCTION.—Nothing in this section awarding grants to eligible entities to carry out ‘‘(A) evidence-based and, where appropriate, shall be construed as supporting the restriction such project. Such model shall— risk adjusted; of coverage, under title XIX or XXI or other- ‘‘(A) identify, through self-assessment, behav- ‘‘(B) designed to identify and eliminate racial wise, to only those services that are evidence- ioral risk factors for obesity among children; and ethnic disparities in child health and the based. ‘‘(B) identify, through self-assessment, needed clinical preventive and screening benefits among provision of health care; ‘‘(c) ANNUAL STATE REPORTS REGARDING ‘‘(C) designed to ensure that the data required STATE-SPECIFIC QUALITY OF CARE MEASURES those children identified as target individuals for such measures is collected and reported in a APPLIED UNDER MEDICAID OR CHIP.— on the basis of such risk factors; ‘‘(C) provide ongoing support to such target standard format that permits comparison of ‘‘(1) ANNUAL STATE REPORTS.—Each State individuals and their families to reduce risk fac- quality and data at a State, plan, and provider with a State plan approved under title XIX or tors and promote the appropriate use of preven- level; a State child health plan approved under title ‘‘(D) periodically updated; and XXI shall annually report to the Secretary on tive and screening benefits; and ‘‘(D) be designed to improve health outcomes, ‘‘(E) responsive to the child health needs, the— services, and domains of health care quality de- ‘‘(A) State-specific child health quality meas- satisfaction, quality of life, and appropriate use scribed in clauses (i), (ii), and (iii) of subsection ures applied by the States under such plans, in- of items and services for which medical assist- (a)(6)(A). cluding measures described in subparagraphs ance is available under title XIX or child health ‘‘(3) PROCESS FOR PEDIATRIC QUALITY MEAS- (A) and (B) of subsection (a)(6); and assistance is available under title XXI among URES PROGRAM.—In identifying gaps in existing ‘‘(B) State-specific information on the quality such target individuals. pediatric quality measures and establishing pri- of health care furnished to children under such ‘‘(2) ELIGIBILITY ENTITIES.—For purposes of orities for development and advancement of plans, including information collected through this subsection, an eligible entity is any of the such measures, the Secretary shall consult external quality reviews of managed care orga- following: ‘‘(A) A city, county, or Indian tribe. with— nizations under section 1932 of the Social Secu- ‘‘(B) A local or tribal educational agency. ‘‘(A) States; rity Act (42 U.S.C. 1396u–4) and benchmark ‘‘(C) An accredited university, college, or com- ‘‘(B) pediatricians, children’s hospitals, and plans under sections 1937 and 2103 of such Act munity college. other primary and specialized pediatric health (42 U.S.C. 1396u–7, 1397cc). ‘‘(D) A Federally-qualified health center. care professionals (including members of the al- ‘‘(2) PUBLICATION.—Not later than September ‘‘(E) A local health department. lied health professions) who specialize in the 30, 2010, and annually thereafter, the Secretary ‘‘(F) A health care provider. care and treatment of children, particularly shall collect, analyze, and make publicly avail- ‘‘(G) A community-based organization. children with special physical, mental, and de- able the information reported by States under ‘‘(H) Any other entity determined appropriate velopmental health care needs; paragraph (1). by the Secretary, including a consortia or part- ‘‘(C) dental professionals, including pediatric ‘‘(d) DEMONSTRATION PROJECTS FOR IMPROV- nership of entities described in any of subpara- dental professionals; ING THE QUALITY OF CHILDREN’S HEALTH CARE graphs (A) through (G).

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‘‘(3) USE OF FUNDS.—An eligible entity award- dence of chronic disease and that can cite pub- the Indian Health Care Improvement Act (25 ed a grant under this subsection shall use the lished and peer-reviewed research dem- U.S.C. 1603). funds made available under the grant to— onstrating that the activities that the entities ‘‘(C) SELF-ASSESSMENT.—The term ‘self-assess- ‘‘(A) carry out community-based activities re- propose to carry out with funds made available ment’ means a form that— lated to reducing childhood obesity, including under the grant are effective; ‘‘(i) includes questions regarding— by— ‘‘(B) that will carry out programs or activities ‘‘(I) behavioral risk factors; ‘‘(i) forming partnerships with entities, in- that seek to accomplish a goal or goals set by ‘‘(II) needed preventive and screening serv- cluding schools and other facilities providing the State in the Healthy People 2010 plan of the ices; and recreational services, to establish programs for State; ‘‘(III) target individuals’ preferences for re- after school and weekend community activities ‘‘(C) that provide non-Federal contributions, ceiving follow-up information; that are designed to reduce childhood obesity; either in cash or in-kind, to the costs of funding ‘‘(ii) is assessed using such computer gen- ‘‘(ii) forming partnerships with daycare facili- activities under the grants; erated assessment programs; and ties to establish programs that promote healthy ‘‘(D) that develop comprehensive plans that ‘‘(iii) allows for the provision of such ongoing eating behaviors and physical activity; and include a strategy for extending program activi- support to the individual as the Secretary deter- ‘‘(iii) developing and evaluating community ties developed under grants in the years fol- mines appropriate. ‘‘(D) ONGOING SUPPORT.—The term ‘ongoing educational activities targeting good nutrition lowing the fiscal years for which they receive support’ means— and promoting healthy eating behaviors; grants under this subsection; ‘‘(i) to provide any target individual with in- ‘‘(B) carry out age-appropriate school-based ‘‘(E) located in communities that are medi- formation, feedback, health coaching, and rec- activities that are designed to reduce childhood cally underserved, as determined by the Sec- ommendations regarding— obesity, including by— retary; ‘‘(I) the results of a self-assessment given to ‘‘(i) developing and testing educational cur- ‘‘(F) located in areas in which the average the individual; ricula and intervention programs designed to poverty rate is at least 150 percent or higher of ‘‘(II) behavior modification based on the self- promote healthy eating behaviors and habits in the average poverty rate in the State involved, assessment; and youth, which may include— as determined by the Secretary; and ‘‘(III) any need for clinical preventive and ‘‘(I) after hours physical activity programs; ‘‘(G) that submit plans that exhibit multisec- screening services or treatment including med- and toral, cooperative conduct that includes the in- ical nutrition therapy; ‘‘(II) science-based interventions with multiple volvement of a broad range of stakeholders, in- ‘‘(ii) to provide any target individual with re- components to prevent eating disorders includ- cluding— ferrals to community resources and programs ing nutritional content, understanding and re- ‘‘(i) community-based organizations; available to assist the target individual in re- sponding to hunger and satiety, positive body ‘‘(ii) local governments; ducing health risks; and image development, positive self-esteem develop- ‘‘(iii) local educational agencies; ‘‘(iii) to provide the information described in ment, and learning life skills (such as stress ‘‘(iv) the private sector; clause (i) to a health care provider, if des- management, communication skills, problem- ‘‘(v) State or local departments of health; ignated by the target individual to receive such ‘‘(vi) accredited colleges, universities, and solving and decisionmaking skills), as well as information. community colleges; consideration of cultural and developmental ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— issues, and the role of family, school, and com- ‘‘(vii) health care providers; There is authorized to be appropriated to carry ‘‘(viii) State and local departments of trans- munity; out this subsection, $25,000,000 for the period of portation and city planning; and ‘‘(ii) providing education and training to edu- fiscal years 2009 through 2013. ‘‘(ix) other entities determined appropriate by cational professionals regarding how to promote ‘‘(f) DEVELOPMENT OF MODEL ELECTRONIC the Secretary. a healthy lifestyle and a healthy school envi- HEALTH RECORD FORMAT FOR CHILDREN EN- ‘‘(5) PROGRAM DESIGN.— ronment for children; ROLLED IN MEDICAID OR CHIP.— ‘‘(A) INITIAL DESIGN.—Not later than 1 year ‘‘(iii) planning and implementing a healthy ‘‘(1) IN GENERAL.—Not later than January 1, after the date of enactment of the Children’s lifestyle curriculum or program with an empha- 2010, the Secretary shall establish a program to Health Insurance Program Reauthorization Act sis on healthy eating behaviors and physical ac- encourage the development and dissemination of of 2009, the Secretary shall design the dem- tivity; and a model electronic health record format for chil- onstration project. The demonstration should ‘‘(iv) planning and implementing healthy life- dren enrolled in the State plan under title XIX draw upon promising, innovative models and in- style classes or programs for parents or guard- or the State child health plan under title XXI centives to reduce behavioral risk factors. The ians, with an emphasis on healthy eating be- that is— haviors and physical activity for children; Administrator of the Centers for Medicare & ‘‘(A) subject to State laws, accessible to par- ‘‘(C) carry out educational, counseling, pro- Medicaid Services shall consult with the Direc- ents, caregivers, and other consumers for the motional, and training activities through the tor of the Centers for Disease Control and Pre- sole purpose of demonstrating compliance with local health care delivery systems including by— vention, the Director of the Office of Minority school or leisure activity requirements, such as ‘‘(i) promoting healthy eating behaviors and Health, the heads of other agencies in the De- appropriate immunizations or physicals; physical activity services to treat or prevent eat- partment of Health and Human Services, and ‘‘(B) designed to allow interoperable ex- ing disorders, being overweight, and obesity; such professional organizations, as the Sec- changes that conform with Federal and State ‘‘(ii) providing patient education and coun- retary determines to be appropriate, on the de- privacy and security requirements; seling to increase physical activity and promote sign, conduct, and evaluation of the demonstra- ‘‘(C) structured in a manner that permits par- healthy eating behaviors; tion. ents and caregivers to view and understand the ‘‘(iii) training health professionals on how to ‘‘(B) NUMBER AND PROJECT AREAS.—Not later extent to which the care their children receive is identify and treat obese and overweight individ- than 2 years after the date of enactment of the clinically appropriate and of high quality; and uals which may include nutrition and physical Children’s Health Insurance Program Reauthor- ‘‘(D) capable of being incorporated into, and activity counseling; and ization Act of 2009, the Secretary shall award 1 otherwise compatible with, other standards de- ‘‘(iv) providing community education by a grant that is specifically designed to determine veloped for electronic health records. health professional on good nutrition and phys- whether programs similar to programs to be con- ‘‘(2) FUNDING.—$5,000,000 of the amount ap- ical activity to develop a better understanding ducted by other grantees under this subsection propriated under subsection (i) for a fiscal year of the relationship between diet, physical activ- should be implemented with respect to the gen- shall be used to carry out this subsection. ity, and eating disorders, obesity, or being over- eral population of children who are eligible for ‘‘(g) STUDY OF PEDIATRIC HEALTH AND weight; and child health assistance under State child health HEALTH CARE QUALITY MEASURES.— ‘‘(D) provide, through qualified health profes- plans under title XXI in order to reduce the in- ‘‘(1) IN GENERAL.—Not later than July 1, 2010, sionals, training and supervision for community cidence of childhood obesity among such popu- the Institute of Medicine shall study and report health workers to— lation. to Congress on the extent and quality of efforts ‘‘(i) educate families regarding the relation- ‘‘(6) REPORT TO CONGRESS.—Not later than 3 to measure child health status and the quality ship between nutrition, eating habits, physical years after the date the Secretary implements of health care for children across the age span activity, and obesity; the demonstration project under this subsection, and in relation to preventive care, treatments ‘‘(ii) educate families about effective strategies the Secretary shall submit to Congress a report for acute conditions, and treatments aimed at to improve nutrition, establish healthy eating that describes the project, evaluates the effec- ameliorating or correcting physical, mental, and patterns, and establish appropriate levels of tiveness and cost effectiveness of the project, developmental conditions in children. In con- physical activity; and evaluates the beneficiary satisfaction under the ducting such study and preparing such report, ‘‘(iii) educate and guide parents regarding the project, and includes any such other informa- the Institute of Medicine shall— ability to model and communicate positive tion as the Secretary determines to be appro- ‘‘(A) consider all of the major national popu- health behaviors. priate. lation-based reporting systems sponsored by the ‘‘(4) PRIORITY.—In awarding grants under ‘‘(7) DEFINITIONS.—In this subsection: Federal Government that are currently in place, paragraph (1), the Secretary shall give priority ‘‘(A) FEDERALLY-QUALIFIED HEALTH CENTER.— including reporting requirements under Federal to awarding grants to eligible entities— The term ‘Federally-qualified health center’ has grant programs and national population surveys ‘‘(A) that demonstrate that they have pre- the meaning given that term in section and estimates conducted directly by the Federal viously applied successfully for funds to carry 1905(l)(2)(B). Government; out activities that seek to promote individual ‘‘(B) INDIAN TRIBE.—The term ‘Indian tribe’ ‘‘(B) identify the information regarding child and community health and to prevent the inci- has the meaning given that term in section 4 of health and health care quality that each system

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00122 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.025 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1225 is designed to capture and generate, the study and care coordination provided under the State (A) the extent to which providers are willing and reporting periods covered by each system, child health plan, using quality care and con- to treat children eligible for such programs; and the extent to which the information so gen- sumer satisfaction measures included in the (B) information on such children’s access to erated is made widely available through publi- Consumer Assessment of Healthcare Providers networks of care; cation; and Systems (CAHPS) survey. (C) geographic availability of primary and ‘‘(C) identify gaps in knowledge related to ‘‘(5) If the State provides child health assist- specialty services under such programs; children’s health status, health disparities ance in the form of premium assistance for the (D) the extent to which care coordination is among subgroups of children, the effects of so- purchase of coverage under a group health provided for children’s care under Medicaid and cial conditions on children’s health status and plan, data regarding the provision of such as- CHIP; and use and effectiveness of health care, and the re- sistance, including the extent to which em- (E) as appropriate, information on the degree lationship between child health status and fam- ployer-sponsored health insurance coverage is of availability of services for children under ily income, family stability and preservation, available for children eligible for child health such programs. and children’s school readiness and educational assistance under the State child health plan, the (2) REPORT.—Not later than 2 years after the achievement and attainment; and range of the monthly amount of such assistance date of enactment of this Act, the Comptroller ‘‘(D) make recommendations regarding im- provided on behalf of a child or family, the General shall submit a report to the Committee proving and strengthening the timeliness, qual- number of children or families provided such as- on Finance of the Senate and the Committee on ity, and public transparency and accessibility of sistance on a monthly basis, the income of the Energy and Commerce of the House of Rep- information about child health and health care children or families provided such assistance, resentatives on the study conducted under para- quality. the benefits and cost-sharing protection pro- graph (1) that includes recommendations for ‘‘(2) FUNDING.—Up to $1,000,000 of the amount vided under the State child health plan to sup- such Federal and State legislative and adminis- appropriated under subsection (i) for a fiscal plement the coverage purchased with such pre- trative changes as the Comptroller General de- year shall be used to carry out this subsection. mium assistance, the effective strategies the termines are necessary to address any barriers ‘‘(h) RULE OF CONSTRUCTION.—Notwith- State engages in to reduce any administrative to access to children’s care under Medicaid and standing any other provision in this section, no barriers to the provision of such assistance, and, CHIP that may exist. evidence based quality measure developed, pub- the effects, if any, of the provision of such as- SEC. 403. APPLICATION OF CERTAIN MANAGED lished, or used as a basis of measurement or re- sistance on preventing the coverage provided CARE QUALITY SAFEGUARDS TO porting under this section may be used to estab- under the State child health plan from sub- CHIP. lish an irrebuttable presumption regarding ei- stituting for coverage provided under employer- (a) IN GENERAL.—Section 2103(f) of Social Se- ther the medical necessity of care or the max- sponsored health insurance offered in the State. curity Act (42 U.S.C. 1397bb(f)) is amended by imum permissible coverage for any individual ‘‘(6) To the extent applicable, a description of adding at the end the following new paragraph: any State activities that are designed to reduce child who is eligible for and receiving medical ‘‘(3) COMPLIANCE WITH MANAGED CARE RE- the number of uncovered children in the State, assistance under title XIX or child health assist- QUIREMENTS.—The State child health plan shall ance under title XXI. including through a State health insurance con- provide for the application of subsections (a)(4), ‘‘(i) APPROPRIATION.—Out of any funds in the nector program or support for innovative private (a)(5), (b), (c), (d), and (e) of section 1932 (relat- Treasury not otherwise appropriated, there is health coverage initiatives.’’. ing to requirements for managed care) to cov- (b) STANDARDIZED REPORTING FORMAT.— appropriated for each of fiscal years 2009 erage, State agencies, enrollment brokers, man- through 2013, $45,000,000 for the purpose of car- (1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary aged care entities, and managed care organiza- rying out this section (other than subsection tions under this title in the same manner as (e)). Funds appropriated under this subsection shall specify a standardized format for States to use for reporting the information required under such subsections apply to coverage and such en- shall remain available until expended.’’. tities and organizations under title XIX.’’. (b) INCREASED MATCHING RATE ‘‘FOR COL- section 2108(e) of the Social Security Act, as (b) EFFECTIVE DATE.—The amendment made LECTING AND REPORTING ON CHILD HEALTH added by subsection (a)(2). (2) TRANSITION PERIOD FOR STATES.—Each by subsection (a) shall apply to contract years MEASURES.—Section 1903(a)(3)(A) (42 U.S.C. State that is required to submit a report under for health plans beginning on or after July 1, 1396b(a)(3)(A)), is amended— 2009. (1) by striking ‘‘and’’ at the end of clause (i); subsection (a) of section 2108 of the Social Secu- and rity Act that includes the information required TITLE V—IMPROVING ACCESS TO (2) by adding at the end the following new under subsection (e) of such section may use up BENEFITS clause: to 3 reporting periods to transition to the report- SEC. 501. DENTAL BENEFITS. ing of such information in accordance with the ‘‘(iii) an amount equal to the Federal medical (a) COVERAGE.— standardized format specified by the Secretary assistance percentage (as defined in section (1) IN GENERAL.—Section 2103 (42 U.S.C. under paragraph (1). 1905(b)) of so much of the sums expended during 1397cc) is amended— (c) ADDITIONAL FUNDING FOR THE SECRETARY such quarter (as found necessary by the Sec- (A) in subsection (a)— TO IMPROVE TIMELINESS OF DATA REPORTING retary for the proper and efficient administra- (i) in the matter before paragraph (1), by AND ANALYSIS FOR PURPOSES OF DETERMINING tion of the State plan) as are attributable to striking ‘‘subsection (c)(5)’’ and inserting ENROLLMENT INCREASES UNDER MEDICAID AND such developments or modifications of systems of ‘‘paragraphs (5) and (7) of subsection (c)’’; and the type described in clause (i) as are necessary CHIP.— (1) APPROPRIATION.—There is appropriated, (ii) in paragraph (1), by inserting ‘‘at least’’ for the efficient collection and reporting on out of any money in the Treasury not otherwise after ‘‘that is’’; and child health measures; and’’. appropriated, $5,000,000 to the Secretary for fis- (B) in subsection (c)— SEC. 402. IMPROVED AVAILABILITY OF PUBLIC IN- cal year 2009 for the purpose of improving the (i) by redesignating paragraph (5) as para- FORMATION REGARDING ENROLL- graph (7); and MENT OF CHILDREN IN CHIP AND timeliness of the data reported and analyzed from the Medicaid Statistical Information Sys- (ii) by inserting after paragraph (4), the fol- MEDICAID. lowing: (a) INCLUSION OF PROCESS AND ACCESS MEAS- tem (MSIS) for purposes of providing more time- ‘‘(5) DENTAL BENEFITS.— URES IN ANNUAL STATE REPORTS.—Section 2108 ly data on enrollment and eligibility of children under Medicaid and CHIP and to provide guid- ‘‘(A) IN GENERAL.—The child health assist- (42 U.S.C. 1397hh) is amended— ance provided to a targeted low-income child (1) in subsection (a), in the matter preceding ance to States with respect to any new reporting shall include coverage of dental services nec- paragraph (1), by striking ‘‘The State’’ and in- requirements related to such improvements. essary to prevent disease and promote oral serting ‘‘Subject to subsection (e), the State’’; Amounts appropriated under this paragraph health, restore oral structures to health and and shall remain available until expended. (2) by adding at the end the following new (2) REQUIREMENTS.—The improvements made function, and treat emergency conditions. subsection: by the Secretary under paragraph (1) shall be ‘‘(B) PERMITTING USE OF DENTAL BENCHMARK ‘‘(e) INFORMATION REQUIRED FOR INCLUSION designed and implemented (including with re- PLANS BY CERTAIN STATES.—A State may elect to IN STATE ANNUAL REPORT.—The State shall in- spect to any necessary guidance for States to re- meet the requirement of subparagraph (A) clude the following information in the annual port such information in a complete and expedi- through dental coverage that is equivalent to a report required under subsection (a): tious manner) so that, beginning no later than benchmark dental benefit package described in ‘‘(1) Eligibility criteria, enrollment, and reten- October 1, 2009, data regarding the enrollment subparagraph (C). tion data (including data with respect to con- of low-income children (as defined in section ‘‘(C) BENCHMARK DENTAL BENEFIT PACK- tinuity of coverage or duration of benefits). 2110(c)(4) of the Social Security Act (42 U.S.C. AGES.—The benchmark dental benefit packages ‘‘(2) Data regarding the extent to which the 1397jj(c)(4)) of a State enrolled in the State plan are as follows: State uses process measures with respect to de- under Medicaid or the State child health plan ‘‘(i) FEHBP CHILDREN’S DENTAL COVERAGE.— termining the eligibility of children under the under CHIP with respect to a fiscal year shall A dental benefits plan under chapter 89A of title State child health plan, including measures be collected and analyzed by the Secretary with- 5, United States Code, that has been selected such as 12-month continuous eligibility, self- in 6 months of submission. most frequently by employees seeking dependent declaration of income for applications or renew- (d) GAO STUDY AND REPORT ON ACCESS TO coverage, among such plans that provide such als, or presumptive eligibility. PRIMARY AND SPECIALITY SERVICES.— dependent coverage, in either of the previous 2 ‘‘(3) Data regarding denials of eligibility and (1) IN GENERAL.—The Comptroller General of plan years. redeterminations of eligibility. the United States shall conduct a study of chil- ‘‘(ii) STATE EMPLOYEE DEPENDENT DENTAL ‘‘(4) Data regarding access to primary and dren’s access to primary and specialty services COVERAGE.—A dental benefits plan that is of- specialty services, access to networks of care, under Medicaid and CHIP, including— fered and generally available to State employees

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in the State involved and that has been selected (C) by adding at the end the following new (f) IMPROVED ACCESSIBILITY OF DENTAL PRO- most frequently by employees seeking dependent clause: VIDER INFORMATION TO ENROLLEES UNDER MED- coverage, among such plans that provide such ‘‘(iv) at State option, may not apply a waiting ICAID AND CHIP.—The Secretary shall— dependent coverage, in either of the previous 2 period in the case of a child provided dental- (1) work with States, pediatric dentists, and plan years. only supplemental coverage under section other dental providers (including providers that ‘‘(iii) COVERAGE OFFERED THROUGH COMMER- 2110(b)(5).’’. are, or are affiliated with, a school of dentistry) CIAL DENTAL PLAN.—A dental benefits plan that (c) DENTAL EDUCATION FOR PARENTS OF to include, not later than 6 months after the has the largest insured commercial, non-med- NEWBORNS.—The Secretary shall develop and date of the enactment of this Act, on the Insure icaid enrollment of dependent covered lives of implement, through entities that fund or provide Kids Now website (http:// such plans that is offered in the State in- perinatal care services to targeted low-income www.insurekidsnow.gov/) and hotline (1–877– volved.’’. children under a State child health plan under KIDS–NOW) (or on any successor websites or (2) ASSURING ACCESS TO CARE.—Section title XXI of the Social Security Act, a program hotlines) a current and accurate list of all such 2102(a)(7)(B) (42 U.S.C. 1397bb(c)(2)) is amended to deliver oral health educational materials that dentists and providers within each State that by inserting ‘‘and services described in section inform new parents about risks for, and preven- provide dental services to children enrolled in 2103(c)(5)’’ after ‘‘emergency services’’. tion of, early childhood caries and the need for the State plan (or waiver) under Medicaid or (3) EFFECTIVE DATE.—The amendments made a dental visit within their newborn’s first year the State child health plan (or waiver) under by paragraphs (1) and (2) shall apply to cov- of life. CHIP, and shall ensure that such list is updated erage of items and services furnished on or after (d) PROVISION OF DENTAL SERVICES THROUGH at least quarterly; and October 1, 2009. FQHCS.— (2) work with States to include, not later than (b) STATE OPTION TO PROVIDE DENTAL-ONLY (1) MEDICAID.—Section 1902(a) (42 U.S.C. 6 months after the date of the enactment of this SUPPLEMENTAL COVERAGE.— 1396a(a)) is amended— Act, a description of the dental services provided (1) IN GENERAL.—Section 2110(b) (42 U.S.C. (A) by striking ‘‘and’’ at the end of paragraph under each State plan (or waiver) under Med- 1397jj(b)) is amended— (70); icaid and each State child health plan (or waiv- (A) in paragraph (1)(C), by inserting ‘‘, sub- (B) by striking the period at the end of para- er) under CHIP on such Insure Kids Now ject to paragraph (5),’’ after ‘‘under title XIX graph (71) and inserting ‘‘; and’’; and website, and shall ensure that such list is up- or’’; and (C) by inserting after paragraph (71) the fol- dated at least annually. (B) by adding at the end the following new lowing new paragraph: (g) INCLUSION OF STATUS OF EFFORTS TO IM- ‘‘(72) provide that the State will not prevent a paragraph: PROVE DENTAL CARE IN REPORTS ON THE QUAL- Federally-qualified health center from entering ‘‘(5) OPTION FOR STATES WITH A SEPARATE ITY OF CHILDREN’S HEALTH CARE UNDER MED- into contractual relationships with private prac- CHIP PROGRAM TO PROVIDE DENTAL-ONLY SUP- ICAID AND CHIP.—Section 1139A(a), as added by tice dental providers in the provision of Feder- PLEMENTAL COVERAGE.— section 401(a), is amended— ‘‘(A) IN GENERAL.—Subject to subparagraphs ally-qualified health center services.’’. (1) in paragraph (3)(B)(ii), by inserting ‘‘and, (2) CHIP.—Section 2107(e)(1) (42 U.S.C. (B) and (C), in the case of any child who is en- with respect to dental care, conditions requiring 1397g(e)(1)), as amended by subsections (a)(2) rolled in a group health plan or health insur- the restoration of teeth, relief of pain and infec- and (d)(2) of section 203, is amended by insert- ance coverage offered through an employer who tion, and maintenance of dental health’’ after ing after subparagraph (B) the following new would, but for the application of paragraph ‘‘chronic conditions’’; and subparagraph (and redesignating the succeeding (1)(C), satisfy the requirements for being a tar- (2) in paragraph (6)(A)(ii), by inserting ‘‘den- subparagraphs accordingly): geted low-income child under a State child tal care,’’ after ‘‘preventive health services,’’. ‘‘(C) Section 1902(a)(72) (relating to limiting health plan that is implemented under this title, (h) GAO STUDY AND REPORT.— FQHC contracting for provision of dental serv- (1) STUDY.—The Comptroller General of the a State may waive the application of such para- ices).’’. United States shall provide for a study that ex- graph to the child in order to provide— (3) EFFECTIVE DATE.—The amendments made ‘‘(i) dental coverage consistent with the re- amines— by this subsection shall take effect on January (A) access to dental services by children in un- quirements of subsection (c)(5) of section 2103; or 1, 2009. derserved areas; ‘‘(ii) cost-sharing protection for dental cov- (e) REPORTING INFORMATION ON DENTAL (B) children’s access to oral health care, in- erage consistent with such requirements and the HEALTH.— cluding preventive and restorative services, requirements of subsection (e)(3)(B) of such sec- (1) MEDICAID.—Section 1902(a)(43)(D)(iii) (42 under Medicaid and CHIP, including— tion. U.S.C. 1396a(a)(43)(D)(iii)) is amended by insert- (i) the extent to which dental providers are ‘‘(B) LIMITATION.—A State may limit the ap- ing ‘‘and other information relating to the pro- willing to treat children eligible for such pro- plication of a waiver of paragraph (1)(C) to chil- vision of dental services to such children de- grams; dren whose family income does not exceed a scribed in section 2108(e)’’ after ‘‘receiving den- (ii) information on such children’s access to level specified by the State, so long as the level tal services,’’. networks of care, including such networks that so specified does not exceed the maximum in- (2) CHIP.—Section 2108 (42 U.S.C. 1397hh) is serve special needs children; and come level otherwise established for other chil- amended by adding at the end the following (iii) geographic availability of oral health dren under the State child health plan. new subsection: care, including preventive and restorative serv- ‘‘(C) CONDITIONS.—A State may not offer den- ‘‘(e) INFORMATION ON DENTAL CARE FOR CHIL- ices, under such programs; and tal-only supplemental coverage under this para- DREN.— (C) the feasibility and appropriateness of graph unless the State satisfies the following ‘‘(1) IN GENERAL.—Each annual report under using qualified mid-level dental health pro- conditions: subsection (a) shall include the following infor- viders, in coordination with dentists, to improve ‘‘(i) INCOME ELIGIBILITY.—The State child mation with respect to care and services de- access for children to oral health services and health plan under this title— scribed in section 1905(r)(3) provided to targeted public health overall. ‘‘(I) has the highest income eligibility stand- low-income children enrolled in the State child (2) REPORT.—Not later than 18 months year ard permitted under this title (or a waiver) as of health plan under this title at any time during after the date of the enactment of this Act, the January 1, 2009; the year involved: Comptroller General shall submit to Congress a ‘‘(II) does not limit the acceptance of applica- ‘‘(A) The number of enrolled children by age report on the study conducted under paragraph tions for children or impose any numerical limi- grouping used for reporting purposes under sec- (1). The report shall include recommendations tation, waiting list, or similar limitation on the tion 1902(a)(43). for such Federal and State legislative and ad- eligibility of such children for child health as- ‘‘(B) For children within each such age ministrative changes as the Comptroller General sistance under such State plan; and grouping, information of the type contained in determines are necessary to address any barriers ‘‘(III) provides benefits to all children in the questions 12(a)–(c) of CMS Form 416 (that con- to access to oral health care, including preven- State who apply for and meet eligibility stand- sists of the number of enrolled targeted low in- tive and restorative services, under Medicaid ards. come children who receive any, preventive, or and CHIP that may exist. ‘‘(ii) NO MORE FAVORABLE TREATMENT.—The restorative dental care under the State plan). SEC. 502. MENTAL HEALTH PARITY IN CHIP State child health plan may not provide more ‘‘(C) For the age grouping that includes chil- PLANS. favorable dental coverage or cost-sharing pro- dren 8 years of age, the number of such children (a) ASSURANCE OF PARITY.—Section 2103(c) (42 tection for dental coverage to children provided who have received a protective sealant on at U.S.C. 1397cc(c)), as amended by section dental-only supplemental coverage under this least one permanent molar tooth. 501(a)(1)(B), is amended by inserting after para- paragraph than the dental coverage and cost- ‘‘(2) INCLUSION OF INFORMATION ON ENROLL- graph (5), the following: sharing protection for dental coverage provided EES IN MANAGED CARE PLANS.—The information ‘‘(6) MENTAL HEALTH SERVICES PARITY.— to targeted low-income children who are eligible under paragraph (1) shall include information ‘‘(A) IN GENERAL.—In the case of a State child for the full range of child health assistance pro- on children who are enrolled in managed care health plan that provides both medical and sur- vided under the State child health plan.’’. plans and other private health plans and con- gical benefits and mental health or substance (2) STATE OPTION TO WAIVE WAITING PERIOD.— tracts with such plans under this title shall pro- use disorder benefits, such plan shall ensure Section 2102(b)(1)(B) (42 U.S.C. 1397bb(b)(1)(B)), vide for the reporting of such information by that the financial requirements and treatment as amended by section 111(b)(2), is amended— such plans to the State.’’. limitations applicable to such mental health or (A) in clause (ii), by striking ‘‘and’’ at the (3) EFFECTIVE DATE.—The amendments made substance use disorder benefits comply with the end; by this subsection shall be effective for annual requirements of section 2705(a) of the Public (B) in clause (iii), by striking the period and reports submitted for years beginning after date Health Service Act in the same manner as such inserting ‘‘; and’’; and of enactment. requirements apply to a group health plan.

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‘‘(B) DEEMED COMPLIANCE.—To the extent For purposes of clause (i), the term ‘new cov- cations of changes in health care delivery in the that a State child health plan includes coverage erage period’ means the month immediately fol- United States and in the market for health care with respect to an individual described in sec- lowing the last month for which the premium services on such programs. tion 1905(a)(4)(B) and covered under the State has been paid.’’. ‘‘(2) SPECIFIC TOPICS TO BE REVIEWED.—Spe- plan under section 1902(a)(10)(A) of the services (b) EFFECTIVE DATE.—The amendment made cifically, MACPAC shall review and assess the described in section 1905(a)(4)(B) (relating to by subsection (a) shall apply to new coverage following: early and periodic screening, diagnostic, and periods beginning on or after the date of the en- ‘‘(A) MEDICAID AND CHIP PAYMENT POLICIES.— treatment services defined in section 1905(r)) actment of this Act. Payment policies under Medicaid and CHIP, in- and provided in accordance with section SEC. 505. CLARIFICATION OF COVERAGE OF SERV- cluding— 1902(a)(43), such plan shall be deemed to satisfy ICES PROVIDED THROUGH SCHOOL- ‘‘(i) the factors affecting expenditures for the requirements of subparagraph (A).’’. BASED HEALTH CENTERS. items and services in different sectors, including (b) CONFORMING AMENDMENTS.—Section 2103 (a) IN GENERAL.—Section 2103(c) (42 U.S.C. the process for updating hospital, skilled nurs- (42 U.S.C. 1397cc) is amended— 1397cc(c)), as amended by section 501(a)(1)(B), is ing facility, physician, Federally-qualified (1) in subsection (a), as amended by section amended by adding at the end the following health center, rural health center, and other 501(a)(1)(A)(i), in the matter preceding para- new paragraph: fees; graph (1), by inserting ‘‘, (6),’’ after ‘‘(5)’’; and ‘‘(8) AVAILABILITY OF COVERAGE FOR ITEMS ‘‘(ii) payment methodologies; and (2) in subsection (c)(2), by striking subpara- AND SERVICES FURNISHED THROUGH SCHOOL- ‘‘(iii) the relationship of such factors and graph (B) and redesignating subparagraphs (C) BASED HEALTH CENTERS.—Nothing in this title methodologies to access and quality of care for and (D) as subparagraphs (B) and (C), respec- shall be construed as limiting a State’s ability to Medicaid and CHIP beneficiaries. tively. provide child health assistance for covered items ‘‘(B) INTERACTION OF MEDICAID AND CHIP PAY- SEC. 503. APPLICATION OF PROSPECTIVE PAY- and services that are furnished through school- MENT POLICIES WITH HEALTH CARE DELIVERY MENT SYSTEM FOR SERVICES PRO- based health centers (as defined in section GENERALLY.—The effect of Medicaid and CHIP VIDED BY FEDERALLY-QUALIFIED 2110(c)(9)).’’. payment policies on access to items and services HEALTH CENTERS AND RURAL (b) DEFINITION.—Section 2110(c) (42 U.S.C. for children and other Medicaid and CHIP pop- HEALTH CLINICS. 1397jj) is amended by adding at the end the fol- ulations other than under this title or title XXI (a) APPLICATION OF PROSPECTIVE PAYMENT lowing: and the implications of changes in health care SYSTEM.— ‘‘(9) SCHOOL-BASED HEALTH CENTER.— delivery in the United States and in the general (1) IN GENERAL.—Section 2107(e)(1) (42 U.S.C. ‘‘(A) IN GENERAL.—The term ‘school-based market for health care items and services on 1397gg(e)(1)), as amended by section 501(c)(2) is health center’ means a health clinic that— Medicaid and CHIP. amended by inserting after subparagraph (C) ‘‘(i) is located in or near a school facility of a ‘‘(C) OTHER ACCESS POLICIES.—The effect of the following new subparagraph (and redesig- school district or board or of an Indian tribe or other Medicaid and CHIP policies on access to nating the succeeding subparagraphs accord- tribal organization; covered items and services, including policies re- ingly): ‘‘(ii) is organized through school, community, lating to transportation and language barriers. ‘‘(D) Section 1902(bb) (relating to payment for and health provider relationships; ‘‘(3) CREATION OF EARLY-WARNING SYSTEM.— services provided by Federally-qualified health ‘‘(iii) is administered by a sponsoring facility; MACPAC shall create an early-warning system centers and rural health clinics).’’. ‘‘(iv) provides through health professionals to identify provider shortage areas or any other (2) EFFECTIVE DATE.—The amendment made primary health services to children in accord- problems that threaten access to care or the by paragraph (1) shall apply to services pro- ance with State and local law, including laws health care status of Medicaid and CHIP bene- vided on or after October 1, 2009. relating to licensure and certification; and ficiaries. (b) TRANSITION GRANTS.— ‘‘(v) satisfies such other requirements as a ‘‘(4) COMMENTS ON CERTAIN SECRETARIAL RE- (1) APPROPRIATION.—Out of any funds in the PORTS.—If the Secretary submits to Congress (or Treasury not otherwise appropriated, there is State may establish for the operation of such a clinic. a committee of Congress) a report that is re- appropriated to the Secretary for fiscal year quired by law and that relates to access policies, 2009, $5,000,000, to remain available until ex- ‘‘(B) SPONSORING FACILITY.—For purposes of subparagraph (A)(iii), the term ‘sponsoring fa- including with respect to payment policies, pended, for the purpose of awarding grants to under Medicaid or CHIP, the Secretary shall States with State child health plans under CHIP cility’ includes any of the following: ‘‘(i) A hospital. transmit a copy of the report to MACPAC. that are operated separately from the State MACPAC shall review the report and, not later Medicaid plan under title XIX of the Social Se- ‘‘(ii) A public health department. ‘‘(iii) A community health center. than 6 months after the date of submittal of the curity Act (including any waiver of such plan), Secretary’s report to Congress, shall submit to or in combination with the State Medicaid plan, ‘‘(iv) A nonprofit health care agency. ‘‘(v) A school or school system. the appropriate committees of Congress written for expenditures related to transitioning to com- comments on such report. Such comments may pliance with the requirement of section ‘‘(vi) A program administered by the Indian Health Service or the Bureau of Indian Affairs include such recommendations as MACPAC 2107(e)(1)(D) of the Social Security Act (as deems appropriate. added by subsection (a)) to apply the prospec- or operated by an Indian tribe or a tribal orga- nization.’’. ‘‘(5) AGENDA AND ADDITIONAL REVIEWS.— tive payment system established under section MACPAC shall consult periodically with the 1902(bb) of the such Act (42 U.S.C. 1396a(bb)) to SEC. 506. MEDICAID AND CHIP PAYMENT AND AC- chairmen and ranking minority members of the CESS COMMISSION. services provided by Federally-qualified health appropriate committees of Congress regarding (a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et centers and rural health clinics. MACPAC’s agenda and progress towards seq.) is amended by inserting before section 1901 (2) MONITORING AND REPORT.—The Secretary achieving the agenda. MACPAC may conduct the following new section: shall monitor the impact of the application of additional reviews, and submit additional re- such prospective payment system on the States ‘‘MEDICAID AND CHIP PAYMENT AND ACCESS ports to the appropriate committees of Congress, described in paragraph (1) and, not later than COMMISSION from time to time on such topics relating to the October 1, 2011, shall report to Congress on any ‘‘SEC. 1900. (a) ESTABLISHMENT.—There is program under this title or title XXI as may be effect on access to benefits, provider payment hereby established the Medicaid and CHIP Pay- requested by such chairmen and members and as rates, or scope of benefits offered by such States ment and Access Commission (in this section re- MACPAC deems appropriate. as a result of the application of such payment ferred to as ‘MACPAC’). ‘‘(6) AVAILABILITY OF REPORTS.—MACPAC system. ‘‘(b) DUTIES.— shall transmit to the Secretary a copy of each SEC. 504. PREMIUM GRACE PERIOD. ‘‘(1) REVIEW OF ACCESS POLICIES AND ANNUAL report submitted under this subsection and shall (a) IN GENERAL.—Section 2103(e)(3) (42 U.S.C. REPORTS.—MACPAC shall— make such reports available to the public. 1397cc(e)(3)) is amended by adding at the end ‘‘(A) review policies of the Medicaid program ‘‘(7) APPROPRIATE COMMITTEE OF CONGRESS.— the following new subparagraph: established under this title (in this section re- For purposes of this section, the term ‘appro- ‘‘(C) PREMIUM GRACE PERIOD.—The State ferred to as ‘Medicaid’) and the State Children’s priate committees of Congress’ means the Com- child health plan— Health Insurance Program established under mittee on Energy and Commerce of the House of ‘‘(i) shall afford individuals enrolled under title XXI (in this section referred to as ‘CHIP’) Representatives and the Committee on Finance the plan a grace period of at least 30 days from affecting children’s access to covered items and of the Senate. the beginning of a new coverage period to make services, including topics described in paragraph ‘‘(8) VOTING AND REPORTING REQUIREMENTS.— premium payments before the individual’s cov- (2); With respect to each recommendation contained erage under the plan may be terminated; and ‘‘(B) make recommendations to Congress con- in a report submitted under paragraph (1), each ‘‘(ii) shall provide to such an individual, not cerning such access policies; member of MACPAC shall vote on the rec- later than 7 days after the first day of such ‘‘(C) by not later than March 1 of each year ommendation, and MACPAC shall include, by grace period, notice— (beginning with 2010), submit a report to Con- member, the results of that vote in the report ‘‘(I) that failure to make a premium payment gress containing the results of such reviews and containing the recommendation. within the grace period will result in termi- MACPAC’s recommendations concerning such ‘‘(9) EXAMINATION OF BUDGET CON- nation of coverage under the State child health policies; and SEQUENCES.—Before making any recommenda- plan; and ‘‘(D) by not later than June 1 of each year tions, MACPAC shall examine the budget con- ‘‘(II) of the individual’s right to challenge the (beginning with 2010), submit a report to Con- sequences of such recommendations, directly or proposed termination pursuant to the applicable gress containing an examination of issues af- through consultation with appropriate expert Federal regulations. fecting Medicaid and CHIP, including the impli- entities.

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‘‘(c) MEMBERSHIP.— pointment of the member as Chairman and a the Secretary, in consultation with the Sec- ‘‘(1) NUMBER AND APPOINTMENT.—MACPAC member as Vice Chairman for that term of ap- retary of the Treasury, the Secretary of Labor, shall be composed of 17 members appointed by pointment, except that in the case of vacancy of and the States (as defined for purposes of Med- the Comptroller General of the United States. the Chairmanship or Vice Chairmanship, the icaid), shall submit an annual report to Con- ‘‘(2) QUALIFICATIONS.— Comptroller General of the United States may gress on the financial status of, enrollment in, ‘‘(A) IN GENERAL.—The membership of designate another member for the remainder of and spending trends for, Medicaid for the fiscal MACPAC shall include individuals who have that member’s term. year ending on September 30 of the preceding had direct experience as enrollees or parents of ‘‘(6) MEETINGS.—MACPAC shall meet at the year. enrollees in Medicaid or CHIP and individuals call of the Chairman. TITLE VI—PROGRAM INTEGRITY AND with national recognition for their expertise in ‘‘(d) DIRECTOR AND STAFF; EXPERTS AND CON- OTHER MISCELLANEOUS PROVISIONS Federal safety net health programs, health fi- SULTANTS.—Subject to such review as the Comp- nance and economics, actuarial science, health Subtitle A—Program Integrity and Data troller General of the United States deems nec- Collection facility management, health plans and inte- essary to assure the efficient administration of grated delivery systems, reimbursement of health MACPAC, MACPAC may— SEC. 601. PAYMENT ERROR RATE MEASUREMENT (‘‘PERM’’). facilities, health information technology, pedi- ‘‘(1) employ and fix the compensation of an (a) EXPENDITURES RELATED TO COMPLIANCE atric physicians, dentists, and other providers of Executive Director (subject to the approval of health services, and other related fields, who WITH REQUIREMENTS.— the Comptroller General of the United States) (1) ENHANCED PAYMENTS.—Section 2105(c) (42 provide a mix of different professionals, broad and such other personnel as may be necessary to U.S.C. 1397ee(c)), as amended by section 301(a), geographic representation, and a balance be- carry out its duties (without regard to the provi- is amended by adding at the end the following tween urban and rural representatives. sions of title 5, United States Code, governing new paragraph: ‘‘(B) INCLUSION.—The membership of appointments in the competitive service); ‘‘(11) ENHANCED PAYMENTS.—Notwithstanding MACPAC shall include (but not be limited to) ‘‘(2) seek such assistance and support as may subsection (b), the enhanced FMAP with respect physicians and other health professionals, em- be required in the performance of its duties from to payments under subsection (a) for expendi- ployers, third-party payers, and individuals appropriate Federal departments and agencies; tures related to the administration of the pay- with expertise in the delivery of health services. ‘‘(3) enter into contracts or make other ar- ment error rate measurement (PERM) require- Such membership shall also include consumers rangements, as may be necessary for the con- ments applicable to the State child health plan representing children, pregnant women, the el- duct of the work of MACPAC (without regard to in accordance with the Improper Payments In- derly, and individuals with disabilities, current section 3709 of the Revised Statutes (41 U.S.C. formation Act of 2002 and parts 431 and 457 of or former representatives of State agencies re- 5)); title 42, Code of Federal Regulations (or any re- sponsible for administering Medicaid, and cur- ‘‘(4) make advance, progress, and other pay- lated or successor guidance or regulations) shall rent or former representatives of State agencies ments which relate to the work of MACPAC; in no event be less than 90 percent.’’. responsible for administering CHIP. ‘‘(5) provide transportation and subsistence (2) EXCLUSION OF FROM CAP ON ADMINISTRA- ‘‘(C) MAJORITY NONPROVIDERS.—Individuals for persons serving without compensation; and TIVE EXPENDITURES.—Section 2105(c)(2)(C) (42 who are directly involved in the provision, or ‘‘(6) prescribe such rules and regulations as it U.S.C. 1397ee(c)(2)C)), as amended by section management of the delivery, of items and serv- deems necessary with respect to the internal or- 302(b)), is amended by adding at the end the fol- ices covered under Medicaid or CHIP shall not ganization and operation of MACPAC. lowing: constitute a majority of the membership of ‘‘(e) POWERS.— ‘‘(iv) PAYMENT ERROR RATE MEASUREMENT MACPAC. ‘‘(1) OBTAINING OFFICIAL DATA.—MACPAC (PERM) EXPENDITURES.—Expenditures related to ‘‘(D) ETHICAL DISCLOSURE.—The Comptroller may secure directly from any department or the administration of the payment error rate General of the United States shall establish a agency of the United States information nec- measurement (PERM) requirements applicable system for public disclosure by members of essary to enable it to carry out this section. to the State child health plan in accordance MACPAC of financial and other potential con- Upon request of the Chairman, the head of that with the Improper Payments Information Act of flicts of interest relating to such members. Mem- department or agency shall furnish that infor- 2002 and parts 431 and 457 of title 42, Code of bers of MACPAC shall be treated as employees mation to MACPAC on an agreed upon sched- Federal Regulations (or any related or successor of Congress for purposes of applying title I of ule. guidance or regulations).’’. the Ethics in Government Act of 1978 (Public ‘‘(2) DATA COLLECTION.—In order to carry out (b) FINAL RULE REQUIRED TO BEINEFFECT Law 95–521). its functions, MACPAC shall— FOR ALL STATES.—Notwithstanding parts 431 ‘‘(3) TERMS.— ‘‘(A) utilize existing information, both pub- and 457 of title 42, Code of Federal Regulations ‘‘(A) IN GENERAL.—The terms of members of lished and unpublished, where possible, col- (as in effect on the date of enactment of this MACPAC shall be for 3 years except that the lected and assessed either by its own staff or Act), the Secretary shall not calculate or pub- Comptroller General of the United States shall under other arrangements made in accordance lish any national or State-specific error rate designate staggered terms for the members first with this section; based on the application of the payment error appointed. ‘‘(B) carry out, or award grants or contracts rate measurement (in this section referred to as ‘‘(B) VACANCIES.—Any member appointed to for, original research and experimentation, ‘‘PERM’’) requirements to CHIP until after the fill a vacancy occurring before the expiration of where existing information is inadequate; and date that is 6 months after the date on which a the term for which the member’s predecessor was ‘‘(C) adopt procedures allowing any interested new final rule (in this section referred to as the appointed shall be appointed only for the re- party to submit information for MACPAC’s use ‘‘new final rule’’) promulgated after the date of mainder of that term. A member may serve after in making reports and recommendations. the enactment of this Act and implementing the expiration of that member’s term until a suc- ‘‘(3) ACCESS OF GAO TO INFORMATION.—The such requirements in accordance with the re- cessor has taken office. A vacancy in MACPAC Comptroller General of the United States shall quirements of subsection (c) is in effect for all shall be filled in the manner in which the origi- have unrestricted access to all deliberations, States. Any calculation of a national error rate nal appointment was made. records, and nonproprietary data of MACPAC, or a State specific error rate after such new ‘‘(4) COMPENSATION.—While serving on the immediately upon request. final rule in effect for all States may only be in- business of MACPAC (including travel time), a ‘‘(4) PERIODIC AUDIT.—MACPAC shall be sub- clusive of errors, as defined in such new final member of MACPAC shall be entitled to com- ject to periodic audit by the Comptroller General rule or in guidance issued within a reasonable pensation at the per diem equivalent of the rate of the United States. time frame after the effective date for such new provided for level IV of the Executive Schedule ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— final rule that includes detailed guidance for under section 5315 of title 5, United States Code; ‘‘(1) REQUEST FOR APPROPRIATIONS.— the specific methodology for error determina- and while so serving away from home and the MACPAC shall submit requests for appropria- tions. member’s regular place of business, a member tions in the same manner as the Comptroller (c) REQUIREMENTS FOR NEW FINAL RULE.—For may be allowed travel expenses, as authorized General of the United States submits requests purposes of subsection (b), the requirements of by the Chairman of MACPAC. Physicians serv- for appropriations, but amounts appropriated this subsection are that the new final rule im- ing as personnel of MACPAC may be provided a for MACPAC shall be separate from amounts plementing the PERM requirements shall— physician comparability allowance by MACPAC appropriated for the Comptroller General of the (1) include— in the same manner as Government physicians United States. (A) clearly defined criteria for errors for both may be provided such an allowance by an agen- ‘‘(2) AUTHORIZATION.—There are authorized States and providers; cy under section 5948 of title 5, United States to be appropriated such sums as may be nec- (B) a clearly defined process for appealing Code, and for such purpose subsection (i) of essary to carry out the provisions of this sec- error determinations by— such section shall apply to MACPAC in the tion.’’. (i) review contractors; or same manner as it applies to the Tennessee Val- (b) DEADLINE FOR INITIAL APPOINTMENTS.— (ii) the agency and personnel described in sec- ley Authority. For purposes of pay (other than Not later than January 1, 2010, the Comptroller tion 431.974(a)(2) of title 42, Code of Federal pay of members of MACPAC) and employment General of the United States shall appoint the Regulations, as in effect on September 1, 2007, benefits, rights, and privileges, all personnel of initial members of the Medicaid and CHIP Pay- responsible for the development, direction, im- MACPAC shall be treated as if they were em- ment and Access Commission established under plementation, and evaluation of eligibility re- ployees of the United States Senate. section 1900 of the Social Security Act (as added views and associated activities; and ‘‘(5) CHAIRMAN; VICE CHAIRMAN.—The Comp- by subsection (a)). (C) clearly defined responsibilities and dead- troller General of the United States shall des- (c) ANNUAL REPORT ON MEDICAID.—Not later lines for States in implementing any corrective ignate a member of MACPAC, at the time of ap- than January 1, 2010, and annually thereafter, action plans; and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00126 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.026 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1229 (2) provide that the payment error rate deter- (1) by redesignating paragraph (2) as para- mit to Congress the results of the evaluation mined for a State shall not take into account graph (4); and conducted under this paragraph. payment errors resulting from the State’s (2) by inserting after paragraph (1), the fol- ‘‘(D) FUNDING.—Out of any money in the verification of an applicant’s self-declaration or lowing new paragraphs: Treasury of the United States not otherwise ap- self-certification of eligibility for, and the cor- ‘‘(2) ADDITIONAL REQUIREMENTS.—In addition propriated, there are appropriated $10,000,000 rect amount of, medical assistance or child to making the adjustments required to produce for fiscal year 2010 for the purpose of con- health assistance, if the State process for the data described in paragraph (1), with re- ducting the evaluation authorized under this verifying an applicant’s self-declaration or self- spect to data collection occurring for fiscal years paragraph. Amounts appropriated under this certification satisfies the requirements for such beginning with fiscal year 2009, in appropriate subparagraph shall remain available for ex- process applicable under regulations promul- consultation with the Secretary of Health and penditure through fiscal year 2012.’’. gated by the Secretary or otherwise approved by Human Services, the Secretary of Commerce shall do the following: SEC. 604. ACCESS TO RECORDS FOR IG AND GAO the Secretary. AUDITS AND EVALUATIONS. (d) OPTION FOR APPLICATION OF DATA FOR ‘‘(A) Make appropriate adjustments to the Section 2108(d) (42 U.S.C. 1397hh(d)) is STATES IN FIRST APPLICATION CYCLE UNDER THE Current Population Survey to develop more ac- amended to read as follows: INTERIM FINAL RULE.—After the new final rule curate State-specific estimates of the number of ‘‘(d) ACCESS TO RECORDS FOR IG AND GAO implementing the PERM requirements in accord- children enrolled in health coverage under title UDITS AND EVALUATIONS.—For the purpose of ance with the requirements of subsection (c) is XIX or this title. A in effect for all States, a State for which the ‘‘(B) Make appropriate adjustments to the evaluating and auditing the program estab- PERM requirements were first in effect under Current Population Survey to improve the sur- lished under this title, or title XIX, the Sec- an interim final rule for fiscal year 2007 or vey estimates used to determine the child popu- retary, the Office of Inspector General, and the under a final rule for fiscal year 2008 may elect lation growth factor under section 2104(m)(5)(B) Comptroller General shall have access to any to accept any payment error rate determined in and any other data necessary for carrying out books, accounts, records, correspondence, and whole or in part for the State on the basis of this title. other documents that are related to the expendi- data for that fiscal year or may elect to not ‘‘(C) Include health insurance survey infor- ture of Federal funds under this title and that have any payment error rate determined on the mation in the American Community Survey re- are in the possession, custody, or control of basis of such data and, instead, shall be treated lated to children. States receiving Federal funds under this title or as if fiscal year 2010 or fiscal year 2011 were the ‘‘(D) Assess whether American Community political subdivisions thereof, or any grantee or first fiscal year for which the PERM require- Survey estimates, once such survey data are contractor of such States or political subdivi- ments apply to the State. first available, produce more reliable estimates sions.’’. (e) HARMONIZATION OF MEQC AND PERM.— than the Current Population Survey with re- SEC. 605. NO FEDERAL FUNDING FOR ILLEGAL (1) REDUCTION OF REDUNDANCIES.—The Sec- spect to the purposes described in subparagraph ALIENS; DISALLOWANCE FOR UNAU- retary shall review the Medicaid Eligibility (B). THORIZED EXPENDITURES. Quality Control (in this subsection referred to as ‘‘(E) On the basis of the assessment required Nothing in this Act allows Federal payment the ‘‘MEQC’’) requirements with the PERM re- under subparagraph (D), recommend to the Sec- for individuals who are not legal residents. Ti- quirements and coordinate consistent implemen- retary of Health and Human Services whether tles XI, XIX, and XXI of the Social Security Act tation of both sets of requirements, while reduc- American Community Survey estimates should provide for the disallowance of Federal finan- ing redundancies. be used in lieu of, or in some combination with, cial participation for erroneous expenditures (2) STATE OPTION TO APPLY PERM DATA.—A Current Population Survey estimates for the under Medicaid and under CHIP, respectively. State may elect, for purposes of determining the purposes described in subparagraph (B). Subtitle B—Miscellaneous Health Provisions erroneous excess payments for medical assist- ‘‘(F) Continue making the adjustments de- ance ratio applicable to the State for a fiscal scribed in the last sentence of paragraph (1) SEC. 611. DEFICIT REDUCTION ACT TECHNICAL year under section 1903(u) of the Social Security with respect to expansion of the sample size CORRECTIONS. Act (42 U.S.C. 1396b(u)) to substitute data re- used in State sampling units, the number of (a) CLARIFICATION OF REQUIREMENT TO PRO- sulting from the application of the PERM re- sampling units in a State, and using an appro- VIDE EPSDT SERVICES FOR ALL CHILDREN IN quirements to the State after the new final rule priate verification element. BENCHMARK BENEFIT PACKAGES UNDER MED- implementing such requirements is in effect for ‘‘(3) AUTHORITY FOR THE SECRETARY OF ICAID.—Section 1937(a)(1) (42 U.S.C. 1396u– all States for data obtained from the application HEALTH AND HUMAN SERVICES TO TRANSITION TO 7(a)(1)), as inserted by section 6044(a) of the of the MEQC requirements to the State with re- THE USE OF ALL, OR SOME COMBINATION OF, ACS Deficit Reduction Act of 2005 (Public Law 109– spect to a fiscal year. ESTIMATES UPON RECOMMENDATION OF THE SEC- 171, 120 Stat. 88), is amended— (3) STATE OPTION TO APPLY MEQC DATA.—For RETARY OF COMMERCE.—If, on the basis of the (1) in subparagraph (A)— purposes of satisfying the requirements of sub- assessment required under paragraph (2)(D), the (A) in the matter before clause (i)— part Q of part 431 of title 42, Code of Federal Secretary of Commerce recommends to the Sec- (i) by striking ‘‘Notwithstanding any other Regulations, relating to Medicaid eligibility re- retary of Health and Human Services that provision of this title’’ and inserting ‘‘Notwith- views, a State may elect to substitute data ob- American Community Survey estimates should standing section 1902(a)(1) (relating to tained through MEQC reviews conducted in ac- be used in lieu of, or in some combination with, statewideness), section 1902(a)(10)(B) (relating cordance with section 1903(u) of the Social Secu- Current Population Survey estimates for the to comparability) and any other provision of rity Act (42 U.S.C. 1396b(u)) for data required purposes described in paragraph (2)(B), the Sec- this title which would be directly contrary to for purposes of PERM requirements, but only if retary of Health and Human Services, in con- the authority under this section and subject to the State MEQC reviews are based on a broad, sultation with the States, may provide for a pe- subsection (E)’’; and representative sample of Medicaid applicants or riod during which the Secretary may transition (ii) by striking ‘‘enrollment in coverage that enrollees in the States. from carrying out such purposes through the provides’’ and inserting ‘‘coverage that’’; (f) IDENTIFICATION OF IMPROVED STATE-SPE- use of Current Population Survey estimates to (B) in clause (i), by inserting ‘‘provides’’ after CIFIC SAMPLE SIZES.—The Secretary shall estab- the use of American Community Survey esti- ‘‘(i)’’; and lish State-specific sample sizes for application of mates (in lieu of, or in combination with the (C) by striking clause (ii) and inserting the the PERM requirements with respect to State Current Population Survey estimates, as rec- following: child health plans for fiscal years beginning ommended), provided that any such transition is ‘‘(ii) for any individual described in section with the first fiscal year that begins on or after implemented in a manner that is designed to 1905(a)(4)(B) who is eligible under the State the date on which the new final rule is in effect avoid adverse impacts upon States with ap- plan in accordance with paragraphs (10) and for all States, on the basis of such information proved State child health plans under this (17) of section 1902(a), consists of the items and as the Secretary determines appropriate. In es- title.’’. services described in section 1905(a)(4)(B) (relat- tablishing such sample sizes, the Secretary shall, SEC. 603. UPDATED FEDERAL EVALUATION OF ing to early and periodic screening, diagnostic, to the greatest extent practicable— CHIP. and treatment services defined in section (1) minimize the administrative cost burden on Section 2108(c) (42 U.S.C. 1397hh(c)) is amend- 1905(r)) and provided in accordance with the re- States under Medicaid and CHIP; and ed by striking paragraph (5) and inserting the quirements of section 1902(a)(43).’’; (2) maintain State flexibility to manage such following: (2) in subparagraph (C)— programs. ‘‘(5) SUBSEQUENT EVALUATION USING UPDATED (A) in the heading, by striking ‘‘ (g) TIME FOR PROMULGATION OF FINAL INFORMATION.— WRAP- RULE.—The final rule implementing the PERM ‘‘(A) IN GENERAL.—The Secretary, directly or AROUND’’ and inserting ‘‘ADDITIONAL’’; and requirements under subsection (b) shall be pro- through contracts or interagency agreements, (B) by striking ‘‘wrap-around or’’; and mulgated not later than 6 months after the date shall conduct an independent subsequent eval- (3) by adding at the end the following new of enactment of this Act. uation of 10 States with approved child health subparagraph: SEC. 602. IMPROVING DATA COLLECTION. plans. ‘‘(E) RULE OF CONSTRUCTION.—Nothing in this (a) INCREASED APPROPRIATION.—Section ‘‘(B) SELECTION OF STATES AND MATTERS IN- paragraph shall be construed as— 2109(b)(2) (42 U.S.C. 1397ii(b)(2)) is amended by CLUDED.—Paragraphs (2) and (3) shall apply to ‘‘(i) requiring a State to offer all or any of the striking ‘‘$10,000,000 for fiscal year 2000’’ and such subsequent evaluation in the same manner items and services required by subparagraph inserting ‘‘$20,000,000 for fiscal year 2009’’. as such provisions apply to the evaluation con- (A)(ii) through an issuer of benchmark coverage (b) USE OF ADDITIONAL FUNDS.—Section ducted under paragraph (1). described in subsection (b)(1) or benchmark 2109(b) (42 U.S.C. 1397ii(b)), as amended by sub- ‘‘(C) SUBMISSION TO CONGRESS.—Not later equivalent coverage described in subsection section (a), is amended— than December 31, 2011, the Secretary shall sub- (b)(2);

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‘‘(ii) preventing a State from offering all or (2) DATA TO BE USED.—For estimating and ad- (i) in the clause heading, by striking ‘‘2009 AND any of the items and services required by sub- justment a FMAP already calculated as of the THE FIRST CALENDAR QUARTER OF FISCAL YEAR paragraph (A)(ii) through an issuer of bench- date of the enactment of this Act for a State 2010’’ and inserting ‘‘2011 AND THE FIRST CAL- mark coverage described in subsection (b)(1) or with a significantly disproportionate employer ENDAR QUARTER OF FISCAL YEAR 2012’’; and benchmark equivalent coverage described in pension and insurance fund contribution, the (ii) in each of subclauses (I) and (II), by strik- subsection (b)(2); or Secretary shall use the personal income data set ing ‘‘ or for a period in fiscal year 2010’’ and in- ‘‘(iii) affecting a child’s entitlement to care originally used in calculating such FMAP. serting ‘‘2010, 2011, or for a period in fiscal year and services described in subsections (a)(4)(B) (3) SPECIAL ADJUSTMENT FOR NEGATIVE 2012’’; and and (r) of section 1905 and provided in accord- GROWTH.—If in any calendar year the total per- (3) in subparagraph (B)— ance with section 1902(a)(43) whether provided sonal income growth in a State is negative, an (A) in clause (i)— through benchmark coverage, benchmark equiv- employer pension and insurance fund contribu- (i) in the first sentence, by striking ‘‘2009’’ alent coverage, or otherwise.’’. tion for the purposes of calculating the State’s and inserting ‘‘2011’’; and (b) CORRECTION OF REFERENCE TO CHILDREN FMAP for a calendar year shall not exceed 125 (ii) in the second sentence, by striking ‘‘2010 IN FOSTER CARE RECEIVING CHILD WELFARE percent of the amount of such contribution for for the period ending on December 31, 2009’’ and SERVICES.—Section 1937(a)(2)(B)(viii) (42 U.S.C. the previous calendar year for the State. inserting ‘‘2012 for the period ending on Decem- 1396u–7(a)(2)(B)(viii)), as inserted by section (c) HOLD HARMLESS.—No State shall have its ber 31, 2011’’. 6044(a) of the Deficit Reduction Act of 2005, is FMAP for a fiscal year reduced as a result of SEC. 617. GAO REPORT ON MEDICAID MANAGED amended by striking ‘‘aid or assistance is made the application of this section. CARE PAYMENT RATES. available under part B of title IV to children in (d) REPORT.—Not later than May 15, 2009, the Not later than 18 months after the date of the foster care and individuals’’ and inserting Secretary shall submit to the Congress a report enactment of this Act, the Comptroller General ‘‘child welfare services are made available under on the problems presented by the current treat- of the United States shall submit a report to the part B of title IV on the basis of being a child ment of pension and insurance fund contribu- Committee on Finance of the Senate and the in foster care or’’. tions in the use of Bureau of Economic Affairs Committee on Energy and Commerce of the RANSPARENCY.—Section 1937 (42 U.S.C. (c) T calculations for the FMAP and for Medicaid House of Representatives analyzing the extent 1396u–7), as inserted by section 6044(a) of the and on possible alternative methodologies to to which State payment rates for medicaid man- Deficit Reduction Act of 2005, is amended by mitigate such problems. aged care organizations under Medicaid are ac- adding at the end the following: (e) FMAP DEFINED.—For purposes of this sec- tuarially sound. ‘‘(c) PUBLICATION OF PROVISIONS AFFECTED.— tion, the term ‘‘FMAP’’ means the Federal med- With respect to a State plan amendment to pro- Subtitle C—Other Provisions ical assistance percentage, as defined in section vide benchmark benefits in accordance with SEC. 621. OUTREACH REGARDING HEALTH INSUR- subsections (a) and (b) that is approved by the 1905(b) of the Social Security Act (42 U.S.C. ANCE OPTIONS AVAILABLE TO CHIL- Secretary, the Secretary shall publish on the 1396(d)). DREN. Internet website of the Centers for Medicare & SEC. 615. CLARIFICATION TREATMENT OF RE- (a) DEFINITIONS.—In this section— Medicaid Services, a list of the provisions of this GIONAL MEDICAL CENTER. (1) the terms ‘‘Administration’’ and ‘‘Adminis- title that the Secretary has determined do not (a) IN GENERAL.—Nothing in section 1903(w) trator’’ means the Small Business Administra- apply in order to enable the State to carry out of the Social Security Act (42 U.S.C. 1396b(w)) tion and the Administrator thereof, respectively; the plan amendment and the reason for each shall be construed by the Secretary of Health (2) the term ‘‘certified development company’’ such determination on the date such approval is and Human Services as prohibiting a State’s use means a development company participating in made, and shall publish such list in the Federal of funds as the non-Federal share of expendi- the program under title V of the Small Business Register and not later than 30 days after such tures under title XIX of such Act where such Investment Act of 1958 (15 U.S.C. 695 et seq.); date of approval.’’. funds are transferred from or certified by a pub- (3) the term ‘‘Medicaid program’’ means the (d) EFFECTIVE DATE.—The amendments made licly-owned regional medical center located in program established under title XIX of the So- by subsections (a), (b), and (c) of this section another State and described in subsection (b), so cial Security Act (42 U.S.C. 1396 et seq.); shall take effect as if included in the amend- long as the Secretary determines that such use (4) the term ‘‘Service Corps of Retired Execu- ment made by section 6044(a) of the Deficit Re- of funds is proper and in the interest of the pro- tives’’ means the Service Corps of Retired Execu- duction Act of 2005. gram under title XIX. tives authorized by section 8(b)(1) of the Small SEC. 612. REFERENCES TO TITLE XXI. (b) CENTER DESCRIBED.—A center described in Business Act (15 U.S.C. 637(b)(1)); Section 704 of the Medicare, Medicaid, and this subsection is a publicly-owned regional (5) the term ‘‘small business concern’’ has the SCHIP Balanced Budget Refinement Act of medical center that— meaning given that term in section 3 of the 1999, as enacted into law by division B of Public (1) provides level 1 trauma and burn care serv- Small Business Act (15 U.S.C. 632); Law 106–113 (113 Stat. 1501A–402) is repealed. ices; (6) the term ‘‘small business development cen- SEC. 613. PROHIBITING INITIATION OF NEW (2) provides level 3 neonatal care services; ter’’ means a small business development center HEALTH OPPORTUNITY ACCOUNT (3) is obligated to serve all patients, regardless described in section 21 of the Small Business Act DEMONSTRATION PROGRAMS. of ability to pay; (15 U.S.C. 648); After the date of the enactment of this Act, (4) is located within a Standard Metropolitan (7) the term ‘‘State’’ has the meaning given the Secretary of Health and Human Services Statistical Area (SMSA) that includes at least 3 that term for purposes of title XXI of the Social may not approve any new demonstration pro- States; Security Act (42 U.S.C. 1397aa et seq.); grams under section 1938 of the Social Security (5) provides services as a tertiary care provider (8) the term ‘‘State Children’s Health Insur- Act (42 U.S.C. 1396u–8). for patients residing within a 125-mile radius; ance Program’’ means the State Children’s SEC. 614. ADJUSTMENT IN COMPUTATION OF and Health Insurance Program established under MEDICAID FMAP TO DISREGARD AN (6) meets the criteria for a disproportionate title XXI of the Social Security Act (42 U.S.C. EXTRAORDINARY EMPLOYER PEN- share hospital under section 1923 of such Act (42 1397aa et seq.); SION CONTRIBUTION. U.S.C. 1396r–4) in at least one State other than (9) the term ‘‘task force’’ means the task force (a) IN GENERAL.—Only for purposes of com- the State in which the center is located. established under subsection (b)(1); and puting the FMAP (as defined in subsection (e)) SEC. 616. EXTENSION OF MEDICAID DSH ALLOT- (10) the term ‘‘women’s business center’’ for a State for a fiscal year (beginning with fis- MENTS FOR TENNESSEE AND HA- means a women’s business center described in cal year 2006) and applying the FMAP under WAII. section 29 of the Small Business Act (15 U.S.C. title XIX of the Social Security Act, any signifi- Section 1923(f)(6) (42 U.S.C. 1396r–4(f)(6)), as 656). cantly disproportionate employer pension or in- amended by section 202 of the Medicare Im- (b) ESTABLISHMENT OF TASK FORCE.— surance fund contribution described in sub- provements for Patients and Providers Act of (1) ESTABLISHMENT.—There is established a section (b) shall be disregarded in computing the 2008 (Public Law 110–275) is amended— task force to conduct a nationwide campaign of per capita income of such State, but shall not be (1) in the paragraph heading, by striking ‘‘2009 education and outreach for small business con- disregarded in computing the per capita income AND THE FIRST CALENDAR QUARTER OF FISCAL cerns regarding the availability of coverage for for the continental United States (and Alaska) YEAR 2010’’ and inserting ‘‘2011 AND THE FIRST children through private insurance options, the and Hawaii. CALENDAR QUARTER OF FISCAL YEAR 2012’’; Medicaid program, and the State Children’s (b) SIGNIFICANTLY DISPROPORTIONATE EM- (2) in subparagraph (A)— Health Insurance Program. PLOYER PENSION AND INSURANCE FUND CON- (A) in clause (i)— (2) MEMBERSHIP.—The task force shall consist TRIBUTION.— (i) in the second sentence— of the Administrator, the Secretary of Health (1) IN GENERAL.—For purposes of this section, (I) by striking ‘‘and 2009’’ and inserting ‘‘, and Human Services, the Secretary of Labor, a significantly disproportionate employer pen- 2009, 2010, and 2011’’; and and the Secretary of the Treasury. sion and insurance fund contribution described (II) by striking ‘‘such portion of’’; and (3) RESPONSIBILITIES.—The campaign con- in this subsection with respect to a State is any (ii) in the third sentence, by striking ‘‘2010 for ducted under this subsection shall include— identifiable employer contribution towards pen- the period ending on December 31, 2009’’ and in- (A) efforts to educate the owners of small sion or other employee insurance funds that is serting ‘‘2012 for the period ending on December business concerns about the value of health cov- estimated to accrue to residents of such State for 31, 2011’’; erage for children; a calendar year (beginning with calendar year (B) in clause (ii), by striking ‘‘or for a period (B) information regarding options available to 2003) if the increase in the amount so estimated in fiscal year 2010’’ and inserting ‘‘2010, 2011, or the owners and employees of small business con- exceeds 25 percent of the total increase in per- for period in fiscal year 2012’’; and cerns to make insurance more affordable, in- sonal income in that State for the year involved. (C) in clause (iv)— cluding Federal and State tax deductions and

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00128 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.027 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1231 credits for health care-related expenses and and tax incentives, for the purchase of private known as the Foreign Trade Zone Act, 48 Stat. health insurance expenses and Federal tax ex- insurance coverage. 998, 19 U.S.C. 81a et seq.) or any other provision clusion for health insurance options available TITLE VII—REVENUE PROVISIONS of law, any article which is located in a foreign under employer-sponsored cafeteria plans under trade zone on April 1, 2009, shall be subject to SEC. 701. INCREASE IN EXCISE TAX RATE ON TO- section 125 of the Internal Revenue Code of 1986; BACCO PRODUCTS. the tax imposed by paragraph (1) if— (C) efforts to educate the owners of small busi- (A) internal revenue taxes have been deter- (a) CIGARS.—Section 5701(a) of the Internal ness concerns about assistance available Revenue Code of 1986 is amended— mined, or customs duties liquidated, with re- through public programs; and (1) by striking ‘‘$1.828 cents per thousand spect to such article before such date pursuant (D) efforts to educate the owners and employ- ($1.594 cents per thousand on cigars removed to a request made under the 1st proviso of sec- ees of small business concerns regarding the during 2000 or 2001)’’ in paragraph (1) and in- tion 3(a) of such Act, or availability of the hotline operated as part of serting ‘‘$50.33 per thousand’’, (B) such article is held on such date under the the Insure Kids Now program of the Department (2) by striking ‘‘20.719 percent (18.063 percent supervision of an officer of the United States of Health and Human Services. on cigars removed during 2000 or 2001)’’ in para- Customs and Border Protection of the Depart- MPLEMENTATION.—In carrying out this (4) I graph (2) and inserting ‘‘52.75 percent’’, and ment of Homeland Security pursuant to the 2d subsection, the task force may— (3) by striking ‘‘$48.75 per thousand ($42.50 proviso of such section 3(a). (A) use any business partner of the Adminis- per thousand on cigars removed during 2000 or (5) DEFINITIONS.—For purposes of this sub- tration, including— 2001)’’ in paragraph (2) and inserting ‘‘40.26 section— (i) a small business development center; (A) IN GENERAL.—Any term used in this sub- (ii) a certified development company; cents per cigar’’. (b) CIGARETTES.—Section 5701(b) of such Code section which is also used in section 5702 of the (iii) a women’s business center; and Internal Revenue Code of 1986 shall have the (iv) the Service Corps of Retired Executives; is amended— (1) by striking ‘‘$19.50 per thousand ($17 per same meaning as such term has in such section. (B) enter into— (B) SECRETARY.—The term ‘‘Secretary’’ means (i) a memorandum of understanding with a thousand on cigarettes removed during 2000 or 2001)’’ in paragraph (1) and inserting ‘‘$50.33 the Secretary of the Treasury or the Secretary’s chamber of commerce; and delegate. (ii) a partnership with any appropriate small per thousand’’, and (2) by striking ‘‘$40.95 per thousand ($35.70 (6) CONTROLLED GROUPS.—Rules similar to the business concern or health advocacy group; and rules of section 5061(e)(3) of such Code shall (C) designate outreach programs at regional per thousand on cigarettes removed during 2000 apply for purposes of this subsection. offices of the Department of Health and Human or 2001)’’ in paragraph (2) and inserting (7) OTHER LAWS APPLICABLE.—All provisions Services to work with district offices of the Ad- ‘‘$105.69 per thousand’’. (c) CIGARETTE PAPERS.—Section 5701(c) of of law, including penalties, applicable with re- ministration. spect to the taxes imposed by section 5701 of (5) WEBSITE.—The Administrator shall ensure such Code is amended by striking ‘‘1.22 cents such Code shall, insofar as applicable and not that links to information on the eligibility and (1.06 cents on cigarette papers removed during inconsistent with the provisions of this sub- enrollment requirements for the Medicaid pro- 2000 or 2001)’’ and inserting ‘‘3.15 cents’’. section, apply to the floor stocks taxes imposed gram and State Children’s Health Insurance (d) CIGARETTE TUBES.—Section 5701(d) of such by paragraph (1), to the same extent as if such Program of each State are prominently dis- Code is amended by striking ‘‘2.44 cents (2.13 taxes were imposed by such section 5701. The played on the website of the Administration. cents on cigarette tubes removed during 2000 or Secretary may treat any person who bore the ul- (6) REPORT.— 2001)’’ and inserting ‘‘6.30 cents’’. timate burden of the tax imposed by paragraph (A) IN GENERAL.—Not later than 2 years after (e) SMOKELESS TOBACCO.—Section 5701(e) of the date of enactment of this Act, and every 2 such Code is amended— (1) as the person to whom a credit or refund years thereafter, the Administrator shall submit (1) by striking ‘‘58.5 cents (51 cents on snuff under such provisions may be allowed or made. (i) EFFECTIVE DATE.—The amendments made to the Committee on Small Business and Entre- removed during 2000 or 2001)’’ in paragraph (1) by this section shall apply to articles removed preneurship of the Senate and the Committee on and inserting ‘‘$1.51’’, and (as defined in section 5702(j) of the Internal Small Business of the House of Representatives (2) by striking ‘‘19.5 cents (17 cents on chew- Revenue Code of 1986) after March 31, 2009. a report on the status of the nationwide cam- ing tobacco removed during 2000 or 2001)’’ in paign conducted under paragraph (1). paragraph (2) and inserting ‘‘50.33 cents’’. SEC. 702. ADMINISTRATIVE IMPROVEMENTS. (B) CONTENTS.—Each report submitted under (f) PIPE TOBACCO.—Section 5701(f) of such (a) PERMIT, INVENTORIES, REPORTS, AND subparagraph (A) shall include a status update Code is amended by striking ‘‘$1.0969 cents RECORDS REQUIREMENTS FOR MANUFACTURERS on all efforts made to educate owners and em- (95.67 cents on pipe tobacco removed during 2000 AND IMPORTERS OF PROCESSED TOBACCO.— ployees of small business concerns on options for or 2001)’’ and inserting ‘‘$2.8311 cents’’. (1) PERMIT.— providing health insurance for children through (g) ROLL-YOUR-OWN TOBACCO.—Section (A) APPLICATION.—Section 5712 of the Inter- public and private alternatives. 5701(g) of such Code is amended by striking nal Revenue Code of 1986 is amended by insert- ‘‘$1.0969 cents (95.67 cents on roll-your-own to- ing ‘‘or processed tobacco’’ after ‘‘tobacco prod- SEC. 622. SENSE OF THE SENATE REGARDING AC- CESS TO AFFORDABLE AND MEAN- bacco removed during 2000 or 2001)’’ and insert- ucts’’. INGFUL HEALTH INSURANCE COV- ing ‘‘$24.78’’. (B) ISSUANCE.—Section 5713(a) of such Code is ERAGE. (h) FLOOR STOCKS TAXES.— amended by inserting ‘‘or processed tobacco’’ (a) FINDINGS.—The Senate finds the following: (1) IMPOSITION OF TAX.—On tobacco products after ‘‘tobacco products’’. (1) There are approximately 45 million Ameri- (other than cigars described in section 5701(a)(2) (2) INVENTORIES, REPORTS, AND PACKAGES.— cans currently without health insurance. of the Internal Revenue Code of 1986) and ciga- (A) INVENTORIES.—Section 5721 of such Code (2) More than half of uninsured workers are rette papers and tubes manufactured in or im- is amended by inserting ‘‘, processed tobacco,’’ employed by businesses with less than 25 em- ported into the United States which are removed after ‘‘tobacco products’’. ployees or are self-employed. before April 1, 2009, and held on such date for (B) REPORTS.—Section 5722 of such Code is (3) Health insurance premiums continue to sale by any person, there is hereby imposed a amended by inserting ‘‘, processed tobacco,’’ rise at more than twice the rate of inflation for tax in an amount equal to the excess of— after ‘‘tobacco products’’. all consumer goods. (A) the tax which would be imposed under (C) PACKAGES, MARKS, LABELS, AND NOTICES.— (4) Individuals in the small group and indi- section 5701 of such Code on the article if the ar- Section 5723 of such Code is amended by insert- vidual health insurance markets usually pay ticle had been removed on such date, over ing ‘‘, processed tobacco,’’ after ‘‘tobacco prod- more for similar coverage than those in the large (B) the prior tax (if any) imposed under sec- ucts’’ each place it appears. group market. tion 5701 of such Code on such article. (3) RECORDS.—Section 5741 of such Code is (5) The rapid growth in health insurance costs (2) CREDIT AGAINST TAX.—Each person shall amended by inserting ‘‘, processed tobacco,’’ over the last few years has forced many employ- be allowed as a credit against the taxes imposed after ‘‘tobacco products’’. ers, particularly small employers, to increase by paragraph (1) an amount equal to $500. Such (4) MANUFACTURER OF PROCESSED TOBACCO.— deductibles and co-pays or to drop coverage credit shall not exceed the amount of taxes im- Section 5702 of such Code is amended by adding completely. posed by paragraph (1) on April 1, 2009, for at the end the following new subsection: (b) SENSE OF THE SENATE.—The Senate— which such person is liable. ‘‘(p) MANUFACTURER OF PROCESSED TO- (1) recognizes the necessity to improve afford- (3) LIABILITY FOR TAX AND METHOD OF PAY- BACCO.— ability and access to health insurance for all MENT.— ‘‘(1) IN GENERAL.—The term ‘manufacturer of Americans; (A) LIABILITY FOR TAX.—A person holding to- processed tobacco’ means any person who proc- (2) acknowledges the value of building upon bacco products, cigarette papers, or cigarette esses any tobacco other than tobacco products. the existing private health insurance market; tubes on April 1, 2009, to which any tax imposed ‘‘(2) PROCESSED TOBACCO.—The processing of and by paragraph (1) applies shall be liable for such tobacco shall not include the farming or grow- (3) affirms its intent to enact legislation this tax. ing of tobacco or the handling of tobacco solely year that, with appropriate protection for con- (B) METHOD OF PAYMENT.—The tax imposed for sale, shipment, or delivery to a manufacturer sumers, improves access to affordable and mean- by paragraph (1) shall be paid in such manner of tobacco products or processed tobacco.’’. ingful health insurance coverage for employees as the Secretary shall prescribe by regulations. (5) CONFORMING AMENDMENTS.— of small businesses and individuals by— (C) TIME FOR PAYMENT.—The tax imposed by (A) Section 5702(h) of such Code is amended (A) facilitating pooling mechanisms, including paragraph (1) shall be paid on or before August by striking ‘‘tobacco products and cigarette pa- pooling across State lines, and 1, 2009. pers and tubes’’ and inserting ‘‘tobacco products (B) providing assistance to small businesses (4) ARTICLES IN FOREIGN TRADE ZONES.—Not- or cigarette papers or tubes or any processed to- and individuals, including financial assistance withstanding the Act of June 18, 1934 (commonly bacco’’.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00129 Fmt 0637 Sfmt 6333 E:\CR\FM\A30JA6.027 S30JAPT1 rfrederick on PROD1PC67 with SENATE S1232 CONGRESSIONAL RECORD — SENATE January 30, 2009 (B) Sections 5702(j) and 5702(k) of such Code ing ‘‘or cigars, or for use as wrappers thereof’’ to H.R. 1 at 2 p.m., Monday, February are each amended by inserting ‘‘, or any proc- before the period at the end. 2. essed tobacco,’’ after ‘‘tobacco products or ciga- (2) EFFECTIVE DATE.—The amendment made The PRESIDING OFFICER. Without by this subsection shall apply to articles re- rette papers or tubes’’. objection, it is so ordered. (6) EFFECTIVE DATE.—The amendments made moved (as defined in section 5702(j) of the Inter- by this subsection shall take effect on April 1, nal Revenue Code of 1986) after March 31, 2009. f 2009. (e) TIME OF TAX FOR UNLAWFULLY MANUFAC- (b) BASIS FOR DENIAL, SUSPENSION, OR REV- TURED TOBACCO PRODUCTS.— ORDER FOR PRINTING OCATION OF PERMITS.— (1) IN GENERAL.—Section 5703(b)(2) of such Mr. REID. Mr. President, I ask unan- (1) DENIAL.—Paragraph (3) of section 5712 of Code is amended by adding at the end the fol- lowing new subparagraph: imous consent that the Inouye-Baucus such Code is amended to read as follows: amendment to H.R. 1, which is at the ‘‘(3) such person (including, in the case of a ‘‘(F) SPECIAL RULE FOR UNLAWFULLY MANU- corporation, any officer, director, or principal FACTURED TOBACCO PRODUCTS.—In the case of desk, be printed. stockholder and, in the case of a partnership, a any tobacco products, cigarette paper, or ciga- The PRESIDING OFFICER. Without partner)— rette tubes manufactured in the United States at objection, it is so ordered. any place other than the premises of a manufac- ‘‘(A) is, by reason of his business experience, f financial standing, or trade connections or by turer of tobacco products, cigarette paper, or reason of previous or current legal proceedings cigarette tubes that has filed the bond and ob- CHILDREN’S HEALTH INSURANCE involving a felony violation of any other provi- tained the permit required under this chapter, PROGRAM REAUTHORIZATION tax shall be due and payable immediately upon sion of Federal criminal law relating to tobacco ACT OF 2009 products, processed tobacco, cigarette paper, or manufacture.’’. (2) EFFECTIVE DATE.—The amendment made cigarette tubes, not likely to maintain oper- AMENDMENT NO. 63, AS FURTHER MODIFIED by this subsection shall take effect on the date ations in compliance with this chapter, of the enactment of this Act. Mr. REID. Mr. President, I ask unan- ‘‘(B) has been convicted of a felony violation (f) DISCLOSURE.— imous consent that notwithstanding of any provision of Federal or State criminal (1) IN GENERAL.—Paragraph (1) of section the adoption of the Bingaman amend- law relating to tobacco products, processed to- 6103(o) of such Code is amended by designating ment No. 63, as modified, and the pas- bacco, cigarette paper, or cigarette tubes, or the text as subparagraph (A), moving such text ‘‘(C) has failed to disclose any material infor- sage of H.R. 2, the Bingaman amend- 2 ems to the right, striking ‘‘Returns’’ and in- ment No. 63 be modified further with mation required or made any material false serting ‘‘(A) IN GENERAL.—Returns’’, and by in- statement in the application therefor.’’. serting after subparagraph (A) (as so redesig- the changes that are at the desk. (2) SUSPENSION OR REVOCATION.—Subsection nated) the following new subparagraph: The PRESIDING OFFICER. Without (b) of section 5713 of such Code is amended to ‘‘(B) USE IN CERTAIN PROCEEDINGS.—Returns objection, it is so ordered. read as follows: and return information disclosed to a Federal The amendment No. 63, as further ‘‘(b) SUSPENSION OR REVOCATION.— agency under subparagraph (A) may be used in modified, is as follows: ‘‘(1) SHOW CAUSE HEARING.—If the Secretary an action or proceeding (or in preparation for AMENDMENT NO. 63 has reason to believe that any person holding a such action or proceeding) brought under sec- permit— tion 625 of the American Jobs Creation Act of On page 99, line 9 strike ‘‘and’’ and insert ‘‘(A) has not in good faith complied with this 2004 for the collection of any unpaid assessment ‘‘in writing, by telephone, orally, through chapter, or with any other provision of this title or penalty arising under such Act.’’. electronic signature, or through any other involving intent to defraud, (2) CONFORMING AMENDMENT.—Section means specified by the Secretary or by’’. ‘‘(B) has violated the conditions of such per- 6103(p)(4) of such Code is amended by striking On page 108, between lines 3 and 4, insert mit, ‘‘(o)(1)’’ both places it appears and inserting the following: ‘‘(C) has failed to disclose any material infor- ‘‘(o)(1)(A)’’. ‘‘(H) STATE OPTION TO RELY ON STATE IN- mation required or made any material false (3) EFFECTIVE DATE.—The amendments made COME TAX DATA OR RETURN.—At the option of statement in the application for such permit, by this subsection shall apply on or after the the State, a finding from an Express Lane ‘‘(D) has failed to maintain his premises in date of the enactment of this Act. agency may include gross income or adjusted such manner as to protect the revenue, (g) TRANSITIONAL RULE.—Any person who— gross income shown by State income tax ‘‘(E) is, by reason of previous or current legal (1) on April 1, 2009 is engaged in business as records or returns.’’. proceedings involving a felony violation of any a manufacturer of processed tobacco or as an f other provision of Federal criminal law relating importer of processed tobacco, and to tobacco products, processed tobacco, cigarette (2) before the end of the 90-day period begin- ORDER FOR STAR PRINT—S. 350 paper, or cigarette tubes, not likely to maintain ning on such date, submits an application under operations in compliance with this chapter, or subchapter B of chapter 52 of such Code to en- Mr. REID. Mr. President, I ask unan- ‘‘(F) has been convicted of a felony violation gage in such business, may, notwithstanding imous consent that S. 350 be star print- of any provision of Federal or State criminal such subchapter B, continue to engage in such ed with the changes at the desk. law relating to tobacco products, processed to- business pending final action on such applica- The PRESIDING OFFICER. Without bacco, cigarette paper, or cigarette tubes, tion. Pending such final action, all provisions of objection, it is so ordered. the Secretary shall issue an order, stating the such chapter 52 shall apply to such applicant in facts charged, citing such person to show cause the same manner and to the same extent as if f why his permit should not be suspended or re- such applicant were a holder of a permit under such chapter 52 to engage in such business. READING OF WASHINGTON’S voked. FAREWELL ADDRESS ‘‘(2) ACTION FOLLOWING HEARING.—If, after SEC. 703. TREASURY STUDY CONCERNING MAG- hearing, the Secretary finds that such person NITUDE OF TOBACCO SMUGGLING IN Mr. REID. Mr. President, I ask unan- THE UNITED STATES. has not shown cause why his permit should not Not later than one year after the date of the imous consent that notwithstanding be suspended or revoked, such permit shall be enactment of this Act, the Secretary of the the resolution of January 24, 1901, the suspended for such period as the Secretary Treasury shall conduct a study concerning the traditional reading of Washington’s deems proper or shall be revoked.’’. magnitude of tobacco smuggling in the United Farewell Address take place on Mon- (3) EFFECTIVE DATE.—The amendments made States and submit to Congress recommendations by this subsection shall take effect on the date day, February 23, 2009, at 2 p.m. for the most effective steps to reduce tobacco of the enactment of this Act. The PRESIDING OFFICER. Without smuggling. Such study shall also include a re- (c) APPLICATION OF INTERNAL REVENUE CODE objection, it is so ordered. view of the loss of Federal tax receipts due to il- STATUTE OF LIMITATIONS FOR ALCOHOL AND TO- licit tobacco trade in the United States and the f BACCO EXCISE TAXES.— role of imported tobacco products in the illicit (1) IN GENERAL.—Section 514(a) of the Tariff APPOINTMENTS tobacco trade in the United States. Act of 1930 (19 U.S.C. 1514(a)) is amended by striking ‘‘and section 520 (relating to refunds)’’ SEC. 704. TIME FOR PAYMENT OF CORPORATE ES- The PRESIDING OFFICER. The TIMATED TAXES. and inserting ‘‘section 520 (relating to refunds), Chair, on behalf of the Vice President, The percentage under subparagraph (C) of and section 6501 of the Internal Revenue Code pursuant to the order of the Senate on section 401(1) of the Tax Increase Prevention of 1986 (but only with respect to taxes imposed January 24, 1901, as modified by the and Reconciliation Act of 2005 in effect on the under chapters 51 and 52 of such Code)’’. date of the enactment of this Act is increased by order of January 30, 2009, appoints the (2) EFFECTIVE DATE.—The amendment made 0.5 percentage point. Senator from Nebraska, Mr. JOHANNS, by this subsection shall apply to articles im- to read Washington’s Farewell Address f ported after the date of the enactment of this on Monday, February 23, 2009. Act. UNANIMOUS-CONSENT The Chair, on behalf of the majority (d) EXPANSION OF DEFINITION OF ROLL-YOUR- AGREEMENT—H.R. 1 OWN TOBACCO.— leader, pursuant to the provisions of (1) IN GENERAL.—Section 5702(o) of the Inter- Mr. REID. Mr. President, I ask unan- Public Law 99–93, as amended by Public nal Revenue Code of 1986 is amended by insert- imous consent that the Senate proceed Law 99–151, appoints the Senator from

VerDate Nov 24 2008 03:10 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00130 Fmt 0637 Sfmt 0634 E:\CR\FM\A30JA6.027 S30JAPT1 rfrederick on PROD1PC67 with SENATE January 30, 2009 CONGRESSIONAL RECORD — SENATE S1233 California (Mrs. FEINSTEIN) as Chair- The PRESIDING OFFICER. Without NOMINATIONS man of the United States Caucus on objection, it is so ordered. Executive nominations received by International Narcotics Control. f the Senate: f PROGRAM CENTRAL INTELLIGENCE AGENCY ORDERS FOR MONDAY, FEBRUARY Mr. REID. Mr. President, at 6:15 p.m. 2, 2009 on Monday, the Senate will proceed to LEON E. PANETTA, OF CALIFORNIA, TO BE DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY, VICE GEN- Mr. REID. Mr. President, I ask unan- a vote on confirmation of Eric Holder ERAL MICHAEL V. HAYDEN, UNITED STATES AIR FORCE. imous consent that when the Senate to be Attorney General of the United completes its business today, it stand States. DEPARTMENT OF JUSTICE adjourned until 2 p.m., Monday, Feb- THOMAS JOHN PERRELLI, OF VIRGINIA, TO BE ASSO- f CIATE ATTORNEY GENERAL, VICE KEVIN J. O’CONNOR, ruary 2; that following the prayer and RESIGNED. the pledge, the Journal of proceedings ADJOURNMENT UNTIL MONDAY, be approved to date, the morning hour FEBRUARY 2, 2009, AT 2 P.M. IN THE NAVY be deemed expired, the time for the two Mr. REID. Mr. President, if there is THE FOLLOWING NAMED OFFICER FOR APPOINTMENT leaders be reserved for their use later no further business to come before the TO THE GRADE INDICATED IN THE UNITED STATES NAVY WHILE SERVING AS THE ATTENDING PHYSICIAN TO THE in the day, and the Senate proceed to Senate, I ask unanimous consent that CONGRESS, UNDER ARTICLE II, SECTION 2, CLAUSE 2 OF the consideration of H.R. 1, the Amer- it stand adjourned as under the pre- THE CONSTITUTION: ican Recovery and Reinvestment Act of vious order. To be rear admiral 2009; further, that at 3:15 p.m., the Sen- There being no objection, the Senate, ate proceed to executive session, as at 2:37 p.m., adjourned until Monday, CAPT. BRIAN P. MONAHAN under the previous order. February 2, 2009, at 2 p.m.

VerDate Nov 24 2008 01:58 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00131 Fmt 0637 Sfmt 9801 E:\CR\FM\A30JA6.008 S30JAPT1 rfrederick on PROD1PC67 with SENATE Friday, January 30, 2009 Daily Digest Senate reached providing that at 2:00 p.m., on Monday, Chamber Action February 2, 2009, Senate begin consideration of Routine Proceedings, pages S1103–S1233 H.R. 1, making supplemental appropriations for job Measures Introduced: Six bills were introduced, as preservation and creation, infrastructure investment, follows: S. 357–362. Page S1124 energy efficiency and science, assistance to the unem- Washington’s Farewell Address: The Chair, on ployed, and State and local fiscal stabilization, for behalf of the Vice President, pursuant to the order fiscal year ending September 30, 2009; provided fur- of the Senate on January 24, 1901, as modified by ther, that the Inouye/Baucus Amendment to H.R. 1, the order of January 30, 2009, appointed Senator be printed. Page S1232 Johanns to read Washington’s Farewell Address on Nominations Received: Senate received the fol- Monday, February 23, 2009. Pages S1232–33 lowing nominations: United States Senate Caucus on International Leon E. Panetta, of California, to be Director of Narcotics Control: The Chair, on behalf of the Ma- the Central Intelligence Agency. jority Leader, pursuant to the provisions of Public Thomas John Perrelli, of Virginia, to be Associate Law 99–93, as amended by Public Law 99–151, ap- Attorney General. pointed Senator Feinstein as Chairman of the United 1 Navy nomination in the rank of admiral. States Senate Caucus on International Narcotics Con- Page S1233 trol. Pages S1232–33 Messages from the House: Page S1124 Children’s Health Insurance Program Reauthor- ization Act—Amendment Modification—Agree- Executive Communications: Page S1124 ment: A unanimous-consent agreement was reached Additional Cosponsors: Page S1124 providing that, notwithstanding the January 29, Statements on Introduced Bills/Resolutions: 2009, passage of H.R. 2, Children’s Health Insur- Pages S1124–28 ance Program Reauthorization Act, Bingaman Modi- fied Amendment No. 63 (to H.R. 2, as amended), Additional Statements: Page S1124 to clarify that new paperwork and enrollment bar- Amendments Submitted: Pages S1128–S1206 riers are not created in the Express Lane Enrollment option and that income may be determined by Ex- Text of H.R. 2, as Previously Passed: press Lane agencies based on State income tax Pages S1206–32 records or returns, which was previously agreed to, Adjournment: Senate convened at 9:30 a.m. and be further modified. Page S1232 adjourned at 2:37 p.m., until 2 p.m. on Monday, Reading of Washington’s Farewell Address— February 2, 2009. (For Senate’s program, see the re- Agreement: A unanimous-consent agreement was marks of the Majority Leader in today’s Record on reached providing that, notwithstanding the Resolu- page S1233.) tion of the Senate of January 24, 1901, the tradi- tional reading of Washington’s Farewell Address take place at 2:00 p.m., on Monday, February 23, Committee Meetings 2009. Page S1232 (Committees not listed did not meet) American Recovery and Reinvestment Act— Agreement: A unanimous-consent agreement was No committee meetings were held.

D91

VerDate Nov 24 2008 02:42 Jan 31, 2009 Jkt 079060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D30JA9.REC D30JAPT1 jbell on PROD1PC69 with DIGEST D92 CONGRESSIONAL RECORD — DAILY DIGEST January 30, 2009 House of Representatives Committee on Veterans’ Affairs: February 3, to hold hear- Chamber Action ings to examine veterans’ disability compensation, focus- The House was not in session today. The House ing on the appeals process, 9:30 a.m., SR–418. is scheduled to meet at 2 p.m. on Monday, February Select Committee on Intelligence: February 5, to hold hear- 2, 2009, pursuant to the provisions of H. Con. Res. ings to examine the nomination of Leon Panetta, to be 26. Director of the Central Intelligence Agency, 2:30 p.m., SD–G50. Committee Meetings House Committees No committee meetings were held. Committee on Agriculture, February 3 and 4, hearings to review derivatives legislation, 1 p.m., on February 3, and Joint Meetings 10:30 a.m., on February 4, 1300 Longworth. No joint committee meetings were held. Committee on Appropriations, February 4, Subcommittee on Military Construction, Veterans Affairs, and Related f Agencies, hearing on Quality of Life, 10 a.m., H–143 CONGRESSIONAL PROGRAM AHEAD Capitol. Committee on Armed Services, February 4, Subcommittee Week of February 2 through February 7, 2009 on Air and Land Forces and the Subcommittee on Senate Chamber Seapower and Expeditionary Forces, joint hearing on Army and Marine Corps force protection programs, 2:30 On Monday, at 2 p.m. Senate will begin consider- p.m., 2118 Rayburn. ation of H.R. 1, American Recovery and Reinvest- Committee on the Budget, February 4, hearing on Long- ment Act. Term Sustainability of Current Defense Plans, 10 a.m., Also, at 3:15 p.m., Senate will begin consideration 210 Cannon. the nomination of Eric H. Holder, Jr., of the Dis- Committee on Financial Services, February 2, hearing enti- trict of Columbia, to be Attorney General, and vote tled ‘‘Promoting Bank Liquidity and Lending Through Deposit Insurance, Hope for Homeowners, and other En- on confirmation thereon at 6:15 p.m. hancements,’’ 2 p.m., 2128 Rayburn. During the balance of the week, Senate may con- February 4, to mark up H.R. 703, To promote bank sider any cleared legislative and executive business. liquidity and lending through deposit insurance, the Senate Committees HOPE for Homeowners Program, and other enhance- ments, 2 p.m., 2128 Rayburn. (Committee meetings are open unless otherwise indicated) February 4, Subcommittee on Capital Markets, Insur- Committee on Banking, Housing, and Urban Affairs: Feb- ance, and Government Sponsored Enterprises, hearing en- ruary 4, to hold hearings to examine the United States titled ‘‘Assessing the Madoff Ponzi Scheme and Regu- financial regulatory system, 2 p.m., SD–538. latory Failures,’’ 10 a.m., 2128 Rayburn. February 5, Full Committee, to hold hearings to exam- Committee on Foreign Affairs, February 4, Subcommittee ine the Troubled Asset Relief Program (TARP), focusing on the Western Hemisphere, hearing on U.S. Policy To- on oversight of the financial rescue package, 10 a.m., ward Latin America in 2009 and Beyond, 11 a.m., 2172 SD–538. Rayburn. Committee on Foreign Relations: February 4, to receive a Committee on Homeland Security, February 4, to meet for closed briefing on North Korea, 2 p.m., SVC–217. organizational purposes, 10:30 a.m., 311 Cannon. February 5, Full Committee, organizational business Committee on the Judiciary, February 4, Subcommittee on meeting to consider committee’s rules of procedure, and Commercial and Administrative Law, hearing on Mid- subcommittee membership and jurisdiction for the 111th night Rulemaking: Shedding Some Light, 11 a.m., 2141 Congress, Time to be announced, S–116, Capitol. Rayburn. Committee on Health, Education, Labor, and Pensions: Feb- Committee on Natural Resources, February 4, to meet for ruary 5, to hold hearings to examine implementing best organizational purposes, and to consider the Committee’s patient care practices, 10 a.m., SD–430. Oversight Plan for the 111th Congress, 10 a.m., 1324 Committee on Indian Affairs: February 5, organizational Longworth. business meeting to consider the committee’s selection of Committee on Rules, February 3, to consider the fol- Chairman and Vice Chairman, rules of procedure for the lowing: S. 352, to postpone the DTV transition date; and 111th Congress, and funding resolution; to be followed a resolution providing for consideration of the Senate by an oversight hearing to examine advancing Indian amendment to H.R. 2, the Children’s Health Insurance health care, 11 a.m., SD–628. Program Reauthorization Act of 2009, at 5 p.m., H–313 Committee on the Judiciary: February 5, to hold hearings Capitol. to examine the nomination of David W. Ogden, of Vir- Committee on Small Business, February 4, hearing entitled ginia, to be Deputy Attorney General, 10 a.m., SD–226. ‘‘Health Care Reform in a Struggling Economy: What is

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on the Horizon for Small Business?’’ 10 a.m., 2360 Ray- Committee on Veterans’ Affairs, February 4, to meet for burn. organizational purposes; followed by a hearing on the Committee on Transportation and Infrastructure, February State of the U.S. Department of Veterans Affairs, 10 a.m., 4. Subcommittee on Coast Guard and Maritime Transpor- 334 Cannon. tation, hearing on International Piracy on the High Seas, Select Committee on Energy Independence and Global Warm- 2 p.m., 2167 Rayburn. ing, February 4, hearing entitled ‘‘Roadmap from Pozan February 4, Subcommittee Water Resources and Envi- to Copenhagen—Preconditions for Success,’’ 10 a.m., ronment, hearing on Sustainable Wastewater Manage- 2318 Rayburn. ment, 10 a.m., 2167 Rayburn.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 2 p.m., Monday, February 2 2 p.m., Monday, February 2

Senate Chamber House Chamber Program for Monday: Senate will begin consideration of Program for Monday: To be announced. H.R. 1, American Recovery and Reinvestment Act. Also, at 3:15 p.m., Senate will begin consideration of the nom- ination of Eric Holder, of the District of Columbia, to be Attorney General, and vote on the confirmation thereon at 6:15 p.m.

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