In the House of Representatives, U. S.,

May 24, 2007.

Resolved, That the House agree to the amendment of the 

Senate to the bill (H.R. 2206) entitled ‘‘An Act making 

emergency supplemental appropriations and additional supplemental appropriations for agricultural and other emergency assistance for the fiscal year ending September 30, 

2007, and for other purposes’’, with the following

HOUSE AMENDMENT TO SENATE AMENDMENT:

In lieu of the matter proposed to be inserted by the 

amendment of the Senate, insert the following:

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘U.S. Troop Readiness, 

3 Veterans’ Care, Katrina Recovery, and Iraq Accountability 

4 Appropriations Act, 2007’’. 

5 SEC. 2. TABLE OF CONTENTS. 

6 The table of contents for this Act is as follows:

TITLE I—SUPPLEMENTAL APPROPRIATIONS FOR DEFENSE, INTERNATIONAL AFFAIRS, AND OTHER SECURITY-RELATED 

NEEDS 

TITLE II—HURRICANE KATRINA RECOVERY 

TITLE III—ADDITIONAL DEFENSE, INTERNATIONAL AFFAIRS, AND 

HOMELAND SECURITY PROVISIONS 

TITLE IV—ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY 

TITLE V—OTHER EMERGENCY APPROPRIATIONS 

TITLE VI—OTHER MATTERS 

TITLE VII—ELIMINATION OF SCHIP SHORTFALL AND OTHER 

HEALTH MATTERS 
2

•HR 2206 EAH 

TITLE VIII—FAIR MINIMUM WAGE AND TAX RELIEF 

TITLE IX—AGRICULTURAL ASSISTANCE 

TITLE X—GENERAL PROVISIONS

1 SEC. 3. STATEMENT OF APPROPRIATIONS. 

2 The following sums in this Act are appropriated, out 

3 of any money in the Treasury not otherwise appropriated, 

4 for the fiscal year ending September 30, 2007. 

5 TITLE I—SUPPLEMENTAL AP6 PROPRIATIONS FOR DE7 FENSE, INTERNATIONAL AF8 FAIRS, AND OTHER SECURITY9 RELATED NEEDS 

10 CHAPTER 1

11 DEPARTMENT OF AGRICULTURE 

12 FOREIGN AGRICULTURAL SERVICE

13 PUBLIC LAW 480 TITLE II GRANTS

14 For an additional amount for ‘‘Public Law 480 Title 

15 II Grants’’, during the current fiscal year, not otherwise 

16 recoverable, and unrecovered prior years’ costs, including 

17 interest thereon, under the Agricultural Trade Development 

18 and Assistance Act of 1954, for commodities supplied in 

19 connection with dispositions abroad under title II of said 

20 Act, $350,000,000, to remain available until expended. 
3

•HR 2206 EAH 

1 CHAPTER 2

2 DEPARTMENT OF JUSTICE 

3 LEGAL ACTIVITIES

4 SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

5 For an additional amount for ‘‘Salaries and Expenses, 

6 General Legal Activities’’, $1,648,000, to remain available 

7 until September 30, 2008. 

8 SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

9 For an additional amount for ‘‘Salaries and Expenses, 

10 United States Attorneys’’, $5,000,000, to remain available 

11 until September 30, 2008. 

12 UNITED STATES MARSHALS SERVICE

13 SALARIES AND EXPENSES

14 For an additional amount for ‘‘Salaries and Ex15 penses’’, $6,450,000, to remain available until September 

16 30, 2008. 

17 NATIONAL SECURITY DIVISION

18 SALARIES AND EXPENSES

19 For an additional amount for ‘‘Salaries and Ex20 penses’’, $1,736,000, to remain available until September 

21 30, 2008. 

22 FEDERAL BUREAU OF INVESTIGATION

23 SALARIES AND EXPENSES

24 For an additional amount for ‘‘Salaries and Ex25 penses’’, $118,260,000, to remain available until September 

26 30, 2008. 
4

•HR 2206 EAH 

1 DRUG ENFORCEMENT ADMINISTRATION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $8,468,000, to remain available until September 

5 30, 2008. 

6 BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND

7 EXPLOSIVES

8 SALARIES AND EXPENSES

9 For an additional amount for ‘‘Salaries and Ex10 penses’’, $4,000,000, to remain available until September 

11 30, 2008. 

12 FEDERAL PRISON SYSTEM

13 SALARIES AND EXPENSES

14 For an additional amount for ‘‘Salaries and Ex15 penses’’, $17,000,000, to remain available until September 

16 30, 2008. 

17 GENERAL PROVISIONS—THIS CHAPTER 

18 SEC. 1201. Funds provided in this Act for the ‘‘De19 partment of Justice, United States Marshals Service, Sala20 ries and Expenses’’ shall be made available according to 

21 the language relating to such account in the joint explana22 tory statement accompanying the conference report on H.R. 

23 1591 of the 110th Congress (H. Rept. 110–107). 

24 SEC. 1202. Funds provided in this Act for the ‘‘De25 partment of Justice, Legal Activities, Salaries and Ex-
5

•HR 2206 EAH 

1 penses, General Legal Activities’’, shall be made available 

2 according to the language relating to such account in the 

3 joint explanatory statement accompanying the conference 

4 report on H.R. 1591 of the 110th Congress (H. Rept. 110–

5 107). 

6 CHAPTER 3

7 DEPARTMENT OF DEFENSE—MILITARY 

8 MILITARY PERSONNEL 

9 MILITARY PERSONNEL, ARMY

10 For an additional amount for ‘‘Military Personnel, 

11 Army’’, $8,510,270,000. 

12 MILITARY PERSONNEL, NAVY

13 For an additional amount for ‘‘Military Personnel, 

14 Navy’’, $692,127,000. 

15 MILITARY PERSONNEL, MARINE CORPS

16 For an additional amount for ‘‘Military Personnel, 

17 Marine Corps’’, $1,386,871,000. 

18 MILITARY PERSONNEL, AIR FORCE

19 For an additional amount for ‘‘Military Personnel, 

20 Air Force’’, $1,079,287,000. 

21 RESERVE PERSONNEL, ARMY

22 For an additional amount for ‘‘Reserve Personnel, 

23 Army’’, $147,244,000. 
6

•HR 2206 EAH 

1 RESERVE PERSONNEL, NAVY

2 For an additional amount for ‘‘Reserve Personnel, 

3 Navy’’, $77,800,000. 

4 RESERVE PERSONNEL, AIR FORCE

5 For an additional amount for ‘‘Reserve Personnel, Air 

6 Force’’, $5,500,000. 

7 NATIONAL GUARD PERSONNEL, ARMY

8 For an additional amount for ‘‘National Guard Per9 sonnel, Army’’, $436,025,000. 

10 NATIONAL GUARD PERSONNEL, AIR FORCE

11 For an additional amount for ‘‘National Guard Per12 sonnel, Air Force’’, $24,500,000. 

13 OPERATION AND MAINTENANCE 

14 OPERATION AND MAINTENANCE, ARMY

15 For an additional amount for ‘‘Operation and Mainte16 nance, Army’’, $20,373,379,000. 

17 OPERATION AND MAINTENANCE, NAVY

18 (INCLUDING TRANSFER OF FUNDS)

19 For an additional amount for ‘‘Operation and Mainte20 nance, Navy’’, $4,652,670,000, of which up to $120,293,000 

21 shall be transferred to Coast Guard, ‘‘Operating Expenses’’, 

22 for reimbursement for activities which support activities re23 quested by the Navy. 
7

•HR 2206 EAH 

1 OPERATION AND MAINTENANCE, MARINE CORPS

2 For an additional amount for ‘‘Operation and Mainte3 nance, Marine Corps’’, $1,146,594,000. 

4 OPERATION AND MAINTENANCE, AIR FORCE

5 For an additional amount for ‘‘Operation and Mainte6 nance, Air Force’’, $6,650,881,000. 

7 OPERATION AND MAINTENANCE, DEFENSE-WIDE

8 For an additional amount for ‘‘Operation and Mainte9 nance, Defense-Wide’’, $2,714,487,000, of which— 

10 (1) not to exceed $25,000,000 may be used for the 

11 Combatant Commander Initiative Fund, to be used in 

12 support of Operation Iraqi Freedom and Operation 

13 Enduring Freedom; and 

14 (2) not to exceed $200,000,000, to remain avail15 able until expended, may be used for payments to re16 imburse Pakistan, Jordan, and other key cooperating 

17 nations, for logistical, military, and other support 

18 provided to United States military operations, not19 withstanding any other provision of law: Provided, 

20 That such payments may be made in such amounts 

21 as the Secretary of Defense, with the concurrence of 

22 the Secretary of State, and in consultation with the 

23 Director of the Office of Management and Budget, 

24 may determine, in his discretion, based on docu25 mentation determined by the Secretary of Defense to 
8

•HR 2206 EAH 

1 adequately account for the support provided, and such 

2 determination is final and conclusive upon the ac3 counting officers of the United States, and 15 days 

4 following notification to the appropriate congressional 

5 committees: Provided further, That the Secretary of 

6 Defense shall provide quarterly reports to the congres7 sional defense committees on the use of funds provided 

8 in this paragraph. 

9 OPERATION AND MAINTENANCE, ARMY RESERVE

10 For an additional amount for ‘‘Operation and Mainte11 nance, Army Reserve’’, $74,049,000. 

12 OPERATION AND MAINTENANCE, NAVY RESERVE

13 For an additional amount for ‘‘Operation and Mainte14 nance, Navy Reserve’’, $111,066,000. 

15 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

16 For an additional amount for ‘‘Operation and Mainte17 nance, Marine Corps Reserve’’, $13,591,000. 

18 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

19 For an additional amount for ‘‘Operation and Mainte20 nance, Air Force Reserve’’, $10,160,000. 

21 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

22 For an additional amount for ‘‘Operation and Mainte23 nance, Army National Guard’’, $83,569,000. 
9

•HR 2206 EAH 

1 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

2 For an additional amount for ‘‘Operation and Mainte3 nance, Air National Guard’’, $38,429,000. 

4 AFGHANISTAN SECURITY FORCES FUND

5 For an additional amount for ‘‘Afghanistan Security 

6 Forces Fund’’, $5,906,400,000, to remain available until 

7 September 30, 2008. 

8 IRAQ SECURITY FORCES FUND

9 For an additional amount for ‘‘Iraq Security Forces 

10 Fund’’, $3,842,300,000, to remain available until Sep11 tember 30, 2008. 

12 IRAQ FREEDOM FUND

13 (INCLUDING TRANSFER OF FUNDS)

14 For an additional amount for ‘‘Iraq Freedom Fund’’, 

15 $355,600,000, to remain available for transfer until Sep16 tember 30, 2008: Provided, That up to $50,000,000 may 

17 be obligated and expended for purposes of the Task Force 

18 to Improve Business and Stability Operations in Iraq. 

19 JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

20 For an additional amount for ‘‘Joint Improvised Ex21 plosive Device Defeat Fund’’, $2,432,800,000, to remain 

22 available until September 30, 2009. 
10

•HR 2206 EAH 

1 PROCUREMENT 

2 AIRCRAFT PROCUREMENT, ARMY

3 For an additional amount for ‘‘Aircraft Procurement, 

4 Army’’, $619,750,000, to remain available until September 

5 30, 2009. 

6 MISSILE PROCUREMENT, ARMY

7 For an additional amount for ‘‘Missile Procurement, 

8 Army’’, $111,473,000, to remain available until September 

9 30, 2009. 

10 PROCUREMENT OF WEAPONS AND TRACKED COMBAT

11 VEHICLES, ARMY

12 For an additional amount for ‘‘Procurement of Weap13 ons and Tracked Combat Vehicles, Army’’, $3,404,315,000, 

14 to remain available until September 30, 2009. 

15 PROCUREMENT OF AMMUNITION, ARMY

16 For an additional amount for ‘‘Procurement of Am17 munition, Army’’, $681,500,000, to remain available until 

18 September 30, 2009. 

19 OTHER PROCUREMENT, ARMY

20 For an additional amount for ‘‘Other Procurement, 

21 Army’’, $9,859,137,000, to remain available until Sep22 tember 30, 2009. 
11

•HR 2206 EAH 

1 AIRCRAFT PROCUREMENT, NAVY

2 For an additional amount for ‘‘Aircraft Procurement, 

3 Navy’’, $1,090,287,000, to remain available until Sep4 tember 30, 2009. 

5 WEAPONS PROCUREMENT, NAVY

6 For an additional amount for ‘‘Weapons Procurement, 

7 Navy’’, $163,813,000, to remain available until September 

8 30, 2009. 

9 PROCUREMENT OF AMMUNITION, NAVY AND MARINE

10 CORPS

11 For an additional amount for ‘‘Procurement of Am12 munition, Navy and Marine Corps’’, $159,833,000, to re13 main available until September 30, 2009. 

14 OTHER PROCUREMENT, NAVY

15 For an additional amount for ‘‘Other Procurement, 

16 Navy’’, $618,709,000, to remain available until September 

17 30, 2009. 

18 PROCUREMENT, MARINE CORPS

19 For an additional amount for ‘‘Procurement, Marine 

20 Corps’’, $989,389,000, to remain available until September 

21 30, 2009. 

22 AIRCRAFT PROCUREMENT, AIR FORCE

23 For an additional amount for ‘‘Aircraft Procurement, 

24 Air Force’’, $2,106,468,000, to remain available until Sep25 tember 30, 2009. 
12

•HR 2206 EAH 

1 MISSILE PROCUREMENT, AIR FORCE

2 For an additional amount for ‘‘Missile Procurement, 

3 Air Force’’, $94,900,000, to remain available until Sep4 tember 30, 2009. 

5 PROCUREMENT OF AMMUNITION, AIR FORCE

6 For an additional amount for ‘‘Procurement of Am7 munition, Air Force’’, $6,000,000, to remain available until 

8 September 30, 2009. 

9 OTHER PROCUREMENT, AIR FORCE

10 For an additional amount for ‘‘Other Procurement, 

11 Air Force’’, $1,957,160,000, to remain available until Sep12 tember 30, 2009. 

13 PROCUREMENT, DEFENSE-WIDE

14 For an additional amount for ‘‘Procurement, Defense15 Wide’’, $721,190,000, to remain available until September 

16 30, 2009. 

17 RESEARCH, DEVELOPMENT, TEST AND 

18 EVALUATION 

19 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

20 For an additional amount for ‘‘Research, Develop21 ment, Test and Evaluation, Army’’, $100,006,000, to re22 main available until September 30, 2008. 
13

•HR 2206 EAH 

1 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

2 For an additional amount for ‘‘Research, Develop3 ment, Test and Evaluation, Navy’’, $298,722,000, to re4 main available until September 30, 2008. 

5 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR

6 FORCE

7 For an additional amount for ‘‘Research, Develop8 ment, Test and Evaluation, Air Force’’, $187,176,000, to 

9 remain available until September 30, 2008. 

10 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

11 DEFENSE-WIDE

12 For an additional amount for ‘‘Research, Develop13 ment, Test and Evaluation, Defense-Wide’’, $512,804,000, 

14 to remain available until September 30, 2008. 

15 REVOLVING AND MANAGEMENT FUNDS 

16 DEFENSE WORKING CAPITAL FUNDS

17 For an additional amount for ‘‘Defense Working Cap18 ital Funds’’, $1,115,526,000. 

19 NATIONAL DEFENSE SEALIFT FUND

20 For an additional amount for ‘‘National Defense Sea21 lift Fund’’, $5,000,000. 

22 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

23 DEFENSE HEALTH PROGRAM

24 For an additional amount for ‘‘Defense Health Pro25 gram’’, $1,123,147,000. 
14

•HR 2206 EAH 

1 DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, 

2 DEFENSE

3 For an additional amount for ‘‘Drug Interdiction and 

4 Counter-Drug Activities, Defense’’, $254,665,000, to remain 

5 available until expended. 

6 RELATED AGENCIES 

7 INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

8 For an additional amount for ‘‘Intelligence Commu9 nity Management Account’’, $71,726,000. 

10 GENERAL PROVISIONS—THIS CHAPTER 

11 SEC. 1301. Appropriations provided in this Act are 

12 available for obligation until September 30, 2007, unless 

13 otherwise provided herein. 

14 (TRANSFER OF FUNDS)

15 SEC. 1302. Upon his determination that such action 

16 is necessary in the national interest, the Secretary of De17 fense may transfer between appropriations up to 

18 $3,500,000,000 of the funds made available to the Depart19 ment of Defense (except for military construction) in this 

20 Act: Provided, That the Secretary shall notify the Congress 

21 promptly of each transfer made pursuant to the authority 

22 in this section: Provided further, That the authority pro23 vided in this section is in addition to any other transfer 

24 authority available to the Department of Defense and is 

25 subject to the same terms and conditions as the authority 

26 provided in section 8005 of the Department of Defense Ap-
15

•HR 2206 EAH 

1 propriations Act, 2007 (Public Law 109–289; 120 Stat. 

2 1257), except for the fourth proviso: Provided further, That 

3 funds previously transferred to the ‘‘Joint Improvised Ex4 plosive Device Defeat Fund’’ and the ‘‘Iraq Security Forces 

5 Fund’’ under the authority of section 8005 of Public Law 

6 109–289 and transferred back to their source appropria7 tions accounts shall not be taken into account for purposes 

8 of the limitation on the amount of funds that may be trans9 ferred under section 8005. 

10 SEC. 1303. Funds appropriated in this Act, or made 

11 available by the transfer of funds in or pursuant to this 

12 Act, for intelligence activities are deemed to be specifically 

13 authorized by the Congress for purposes of section 504(a)(1) 

14 of the National Security Act of 1947 (50 U.S.C. 414(a)(1)). 

15 SEC. 1304. None of the funds provided in this Act may 

16 be used to finance programs or activities denied by Congress 

17 in fiscal years 2006 or 2007 appropriations to the Depart18 ment of Defense (except for military construction) or to ini19 tiate a procurement or research, development, test and eval20 uation new start program without prior written notifica21 tion to the congressional defense committees. 

22 (TRANSFER OF FUNDS)

23 SEC. 1305. During fiscal year 2007, the Secretary of 

24 Defense may transfer not to exceed $6,300,000 of the 

25 amounts in or credited to the Defense Cooperation Account, 

26 pursuant to 10 U.S.C. 2608, to such appropriations or 
16

•HR 2206 EAH 

1 funds of the Department of Defense as he shall determine 

2 for use consistent with the purposes for which such funds 

3 were contributed and accepted: Provided, That such 

4 amounts shall be available for the same time period as the 

5 appropriation to which transferred: Provided further, That 

6 the Secretary shall report to the Congress all transfers made 

7 pursuant to this authority. 

8 SEC. 1306. (a) AUTHORITY TO PROVIDE SUPPORT.—

9 Of the amount appropriated by this Act under the heading, 

10 ‘‘Drug Interdiction and Counter-Drug Activities, Defense’’, 

11 not to exceed $60,000,000 may be used for support for 

12 counter-drug activities of the Governments of Afghanistan 

13 and Pakistan: Provided, That such support shall be in addi14 tion to support provided for the counter-drug activities of 

15 such Governments under any other provision of the law. 

16 (b) TYPES OF SUPPORT.—

17 (1) Except as specified in subsection (b)(2) of 

18 this section, the support that may be provided under 

19 the authority in this section shall be limited to the 

20 types of support specified in section 1033(c)(1) of the 

21 National Defense Authorization Act for Fiscal Year 

22 1998 (Public Law 105–85, as amended by Public 

23 Laws 106–398, 108–136, and 109–364) and condi24 tions on the provision of support as contained in sec25 tion 1033 shall apply for fiscal year 2007. 
17

•HR 2206 EAH 

1 (2) The Secretary of Defense may transfer vehi2 cles, aircraft, and detection, interception, monitoring 

3 and testing equipment to said Governments for 

4 counter-drug activities. 

5 SEC. 1307. (a) From funds made available for oper6 ation and maintenance in this Act to the Department of 

7 Defense, not to exceed $456,400,000 may be used, notwith8 standing any other provision of law, to fund the Com9 manders’ Emergency Response Program, for the purpose of 

10 enabling military commanders in Iraq and Afghanistan to 

11 respond to urgent humanitarian relief and reconstruction 

12 requirements within their areas of responsibility by car13 rying out programs that will immediately assist the Iraqi 

14 and Afghan people. 

15 (b) QUARTERLY REPORTS.—Not later than 15 days 

16 after the end of each fiscal year quarter, the Secretary of 

17 Defense shall submit to the congressional defense committees 

18 a report regarding the source of funds and the allocation 

19 and use of funds during that quarter that were made avail20 able pursuant to the authority provided in this section or 

21 under any other provision of law for the purposes of the 

22 programs under subsection (a). 

23 SEC. 1308. Section 9010 of division A of Public Law 

24 109–289 is amended by striking ‘‘2007’’ each place it ap25 pears and inserting ‘‘2008’’. 
18

•HR 2206 EAH 

1 SEC. 1309. During fiscal year 2007, supervision and 

2 administration costs associated with projects carried out 

3 with funds appropriated to ‘‘Afghanistan Security Forces 

4 Fund’’ or ‘‘Iraq Security Forces Fund’’ in this Act may 

5 be obligated at the time a construction contract is awarded: 

6 Provided, That for the purpose of this section, supervision 

7 and administration costs include all in-house Government 

8 costs. 

9 SEC. 1310. Section 1005(c)(2) of the National Defense 

10 Authorization Act, Fiscal Year 2007 (Public Law 109–364) 

11 is amended by striking ‘‘$310,277,000’’ and inserting 

12 ‘‘$376,446,000’’. 

13 SEC. 1311. Section 9007 of Public Law 109–289 is 

14 amended by striking ‘‘20’’ and inserting ‘‘287’’. 

15 SEC. 1312. From funds made available for the ‘‘Iraq 

16 Security Forces Fund’’ for fiscal year 2007, up to 

17 $155,500,000 may be used, notwithstanding any other pro18 vision of law, to provide assistance, with the concurrence 

19 of the Secretary of State, to the Government of Iraq to sup20 port the disarmament, demobilization, and reintegration of 

21 militias and illegal armed groups. 

22 (TRANSFER OF FUNDS)

23 SEC. 1313. Notwithstanding any other provision of 

24 law, not to exceed $110,000,000 may be transferred to the 

25 ‘‘Economic Support Fund’’, Department of State, for use 
19

•HR 2206 EAH 

1 in programs in Pakistan from amounts appropriated by 

2 this Act as follows: 

3 ‘‘Military Personnel, Army’’, $70,000,000. 

4 ‘‘National Guard Personnel, Army’’, 

5 $13,183,000. 

6 ‘‘Defense Health Program’’, $26,817,000.

7 SEC. 1314. (a) FINDINGS REGARDING PROGRESS IN

8 IRAQ, THE ESTABLISHMENT OF BENCHMARKS TO MEASURE

9 THAT PROGRESS, AND REPORTS TO CONGRESS.—Congress 

10 makes the following findings: 

11 (1) Over 145,000 American military personnel 

12 are currently serving in Iraq, like thousands of others 

13 since March 2003, with the bravery and profes14 sionalism consistent with the finest traditions of the 

15 United States Armed Forces, and are deserving of the 

16 strong support of all Americans. 

17 (2) Many American service personnel have lost 

18 their lives, and many more have been wounded in 

19 Iraq; the American people will always honor their 

20 sacrifice and honor their families. 

21 (3) The United States Army and Marine Corps, 

22 including their Reserve components and National 

23 Guard organizations, together with components of the 

24 other branches of the military, are performing their 

25 missions while under enormous strain from multiple, 
20

•HR 2206 EAH 

1 extended deployments to Iraq and Afghanistan. These 

2 deployments, and those that will follow, will have a 

3 lasting impact on future recruiting, retention, and 

4 readiness of our Nation’s all volunteer force. 

5 (4) Iraq is experiencing a deteriorating problem 

6 of sectarian and intrasectarian violence based upon 

7 political distrust and cultural differences among fac8 tions of the Sunni and Shia populations. 

9 (5) Iraqis must reach political and economic set10 tlements in order to achieve reconciliation, for there 

11 is no military solution. The failure of the Iraqis to 

12 reach such settlements to support a truly unified gov13 ernment greatly contributes to the increasing violence 

14 in Iraq. 

15 (6) The responsibility for Iraq’s internal security 

16 and halting sectarian violence rests with the sovereign 

17 Government of Iraq. 

18 (7) In December 2006, the bipartisan Iraq Study 

19 Group issued a valuable report, suggesting a com20 prehensive strategy that includes new and enhanced 

21 diplomatic and political efforts in Iraq and the re22 gion, and a change in the primary mission of U.S. 

23 forces in Iraq, that will enable the United States to 

24 begin to move its combat forces out of Iraq respon25 sibly. 
21

•HR 2206 EAH 

1 (8) The President said on January 10, 2007, 

2 that ‘‘I’ve made it clear to the Prime Minister and 

3 Iraq’s other leaders that America’s commitment is not 

4 open-ended’’ so as to dispel the contrary impression 

5 that exists. 

6 (9) It is essential that the sovereign Government 

7 of Iraq set out measurable and achievable benchmarks 

8 and President Bush said, on January 10, 2007, that 

9 ‘‘America will change our approach to help the Iraqi 

10 government as it works to meet these benchmarks’’. 

11 (10) As reported by Secretary of State Rice, 

12 Iraq’s Policy Committee on National Security agreed 

13 upon a set of political, security, and economic bench14 marks and an associated timeline in September 2006 

15 that were: (A) reaffirmed by Iraq’s Presidency Coun16 cil on October 6, 2006; (B) referenced by the Iraq 

17 Study Group; and (C) posted on the President of 

18 Iraq’s Web site. 

19 (11) On April 21, 2007, Secretary of Defense 

20 Robert Gates stated that ‘‘our [American] commit21 ment to Iraq is long-term, but it is not a commitment 

22 to have our young men and women patrolling Iraq’s 

23 streets open-endedly’’ and that ‘‘progress in reconcili24 ation will be an important element of our evalua25 tion’’. 
22

•HR 2206 EAH 

1 (12) The President’s January 10, 2007, address 

2 had three components: political, military, and eco3 nomic. Given that significant time has passed since 

4 his statement, and recognizing the overall situation is 

5 ever changing, Congress must have timely reports to 

6 evaluate and execute its constitutional oversight re7 sponsibilities. 

8 (b) CONDITIONING OF FUTURE UNITED STATES

9 STRATEGY IN IRAQ ON THE IRAQI GOVERNMENT’S RECORD

10 OF PERFORMANCE ON ITS BENCHMARKS.—

11 (1) IN GENERAL.—

12 (A) The United States strategy in Iraq, 

13 hereafter, shall be conditioned on the Iraqi gov14 ernment meeting benchmarks, as told to members 

15 of Congress by the President, the Secretary of 

16 State, the Secretary of Defense, and the Chair17 man of the Joint Chiefs of Staff, and reflected in 

18 the Iraqi Government’s commitments to the 

19 United States, and to the international commu20 nity, including: 

21 (i) Forming a Constitutional Review 

22 Committee and then completing the con23 stitutional review. 

24 (ii) Enacting and implementing legis25 lation on de-Baathification. 
23

•HR 2206 EAH 

1 (iii) Enacting and implementing legis2 lation to ensure the equitable distribution of 

3 hydrocarbon resources of the people of Iraq 

4 without regard to the sect or ethnicity of re5 cipients, and enacting and implementing 

6 legislation to ensure that the energy re7 sources of Iraq benefit Sunni Arabs, Shia 

8 Arabs, Kurds, and other Iraqi citizens in 

9 an equitable manner. 

10 (iv) Enacting and implementing legis11 lation on procedures to form semi-autono12 mous regions. 

13 (v) Enacting and implementing legis14 lation establishing an Independent High 

15 Electoral Commission, provincial elections 

16 law, provincial council authorities, and a 

17 date for provincial elections. 

18 (vi) Enacting and implementing legis19 lation addressing amnesty. 

20 (vii) Enacting and implementing legis21 lation establishing a strong militia disar22 mament program to ensure that such secu23 rity forces are accountable only to the cen24 tral government and loyal to the Constitu25 tion of Iraq. 
24

•HR 2206 EAH 

1 (viii) Establishing supporting polit2 ical, media, economic, and services commit3 tees in support of the Baghdad Security 

4 Plan. 

5 (ix) Providing three trained and ready 

6 Iraqi brigades to support Baghdad oper7 ations. 

8 (x) Providing Iraqi commanders with 

9 all authorities to execute this plan and to 

10 make tactical and operational decisions, in 

11 consultation with U.S commanders, without 

12 political intervention, to include the author13 ity to pursue all extremists, including 

14 Sunni insurgents and Shiite militias. 

15 (xi) Ensuring that the Iraqi Security 

16 Forces are providing even handed enforce17 ment of the law. 

18 (xii) Ensuring that, according to 

19 President Bush, Prime Minister Maliki said 

20 ‘‘the Baghdad security plan will not provide 

21 a safe haven for any outlaws, regardless of 

22 [their] sectarian or political affiliation’’. 

23 (xiii) Reducing the level of sectarian 

24 violence in Iraq and eliminating militia 

25 control of local security. 
25

•HR 2206 EAH 

1 (xiv) Establishing all of the planned 

2 joint security stations in neighborhoods 

3 across Baghdad. 

4 (xv) Increasing the number of Iraqi se5 curity forces units capable of operating 

6 independently. 

7 (xvi) Ensuring that the rights of mi8 nority political parties in the Iraqi legisla9 ture are protected. 

10 (xvii) Allocating and spending $10 bil11 lion in Iraqi revenues for reconstruction 

12 projects, including delivery of essential serv13 ices, on an equitable basis. 

14 (xviii) Ensuring that Iraq’s political 

15 authorities are not undermining or making 

16 false accusations against members of the 

17 Iraqi Security Forces. 

18 (B) The President shall submit reports to 

19 Congress on how the sovereign Government of 

20 Iraq is, or is not, achieving progress towards ac21 complishing the aforementioned benchmarks, and 

22 shall advise the Congress on how that assessment 

23 requires, or does not require, changes to the 

24 strategy announced on January 10, 2007. 

25 (2) REPORTS REQUIRED.—
26

•HR 2206 EAH 

1 (A) The President shall submit an initial 

2 report, in classified and unclassified format, to 

3 the Congress, not later than July 15, 2007, as4 sessing the status of each of the specific bench5 marks established above, and declaring, in his 

6 judgment, whether satisfactory progress toward 

7 meeting these benchmarks is, or is not, being 

8 achieved. 

9 (B) The President, having consulted with 

10 the Secretary of State, the Secretary of Defense, 

11 the Commander, Multi-National Forces-Iraq, the 

12 United States Ambassador to Iraq, and the Com13 mander of U.S. Central Command, will prepare 

14 the report and submit the report to Congress. 

15 (C) If the President’s assessment of any of 

16 the specific benchmarks established above is un17 satisfactory, the President shall include in that 

18 report a description of such revisions to the po19 litical, economic, regional, and military compo20 nents of the strategy, as announced by the Presi21 dent on January 10, 2007. In addition, the 

22 President shall include in the report, the advis23 ability of implementing such aspects of the bi24 partisan Iraq Study Group, as he deems appro25 priate. 
27

•HR 2206 EAH 

1 (D) The President shall submit a second re2 port to the Congress, not later than September 

3 15, 2007, following the same procedures and cri4 teria outlined above. 

5 (E) The reporting requirement detailed in 

6 section 1227 of the National Defense Authoriza7 tion Act for Fiscal Year 2006 is waived from the 

8 date of the enactment of this Act through the pe9 riod ending September 15, 2007. 

10 (3) TESTIMONY BEFORE CONGRESS.—Prior to 

11 the submission of the President’s second report on 

12 September 15, 2007, and at a time to be agreed upon 

13 by the leadership of the Congress and the Administra14 tion, the United States Ambassador to Iraq and the 

15 Commander, Multi-National Forces Iraq will be made 

16 available to testify in open and closed sessions before 

17 the relevant committees of the Congress. 

18 (c) LIMITATIONS ON AVAILABILITY OF FUNDS.—

19 (1) LIMITATION.—No funds appropriated or oth20 erwise made available for the ‘‘Economic Support 

21 Fund’’ and available for Iraq may be obligated or ex22 pended unless and until the President of the United 

23 States certifies in the report outlined in subsection 

24 (b)(2)(A) and makes a further certification in the re25 port outlined in subsection (b)(2)(D) that Iraq is 
28

•HR 2206 EAH 

1 making progress on each of the benchmarks set forth 

2 in subsection (b)(1)(A). 

3 (2) WAIVER AUTHORITY.—The President may 

4 waive the requirements of this section if he submits to 

5 Congress a written certification setting forth a de6 tailed justification for the waiver, which shall include 

7 a detailed report describing the actions being taken by 

8 the United States to bring the Iraqi government into 

9 compliance with the benchmarks set forth in sub10 section (b)(1)(A). The certification shall be submitted 

11 in unclassified form, but may include a classified 

12 annex. 

13 (d) REDEPLOYMENT OF U.S. FORCES FROM IRAQ.—

14 The President of the United States, in respecting the sov15 ereign rights of the nation of Iraq, shall direct the orderly 

16 redeployment of elements of U.S. forces from Iraq, if the 

17 components of the Iraqi government, acting in strict accord18 ance with their respective powers given by the Iraqi Con19 stitution, reach a consensus as recited in a resolution, di20 recting a redeployment of U.S. forces. 

21 (e) INDEPENDENT ASSESSMENTS.—

22 (1) ASSESSMENT BY THE COMPTROLLER GEN23 ERAL.—

24 (A) Not later than September 1, 2007, the 

25 Comptroller General of the United States shall 
29

•HR 2206 EAH 

1 submit to Congress an independent report setting 

2 forth—

3 (i) the status of the achievement of the 

4 benchmarks specified in subsection 

5 (b)(1)(A); and 

6 (ii) the Comptroller General’s assess7 ment of whether or not each such benchmark 

8 has been met. 

9 (2) ASSESSMENT OF THE CAPABILITIES OF IRAQI

10 SECURITY FORCES.—

11 (A) IN GENERAL.—There is hereby author12 ized to be appropriated for the Department of 

13 Defense, $750,000, that the Department, in turn, 

14 will commission an independent, private sector 

15 entity, which operates as a 501(c)(3), with recog16 nized credentials and expertise in military af17 fairs, to prepare an independent report assessing 

18 the following: 

19 (i) The readiness of the Iraqi Security 

20 Forces (ISF) to assume responsibility for 

21 maintaining the territorial integrity of 

22 Iraq, denying international terrorists a safe 

23 haven, and bringing greater security to 

24 Iraq’s 18 provinces in the next 12 to 18 
30

•HR 2206 EAH 

1 months, and bringing an end to sectarian 

2 violence to achieve national reconciliation. 

3 (ii) The training, equipping, com4 mand, control and intelligence capabilities, 

5 and logistics capacity of the ISF. 

6 (iii) The likelihood that, given the 

7 ISF’s record of preparedness to date, fol8 lowing years of training and equipping by 

9 U.S. forces, the continued support of U.S. 

10 troops will contribute to the readiness of the 

11 ISF to fulfill the missions outlined in clause 

12 (i). 

13 (B) REPORT.—Not later than 120 days 

14 after the enactment of this Act, the designated 

15 private sector entity shall provide an unclassi16 fied report, with a classified annex, containing 

17 its findings, to the House and Senate Commit18 tees on Armed Services, Appropriations, Foreign 

19 Relations/International Relations, and Intel20 ligence. 
31

•HR 2206 EAH 

1 CHAPTER 4

2 DEPARTMENT OF ENERGY 

3 ATOMIC ENERGY DEFENSE ACTIVITIES 

4 NATIONAL NUCLEAR SECURITY ADMINISTRATION

5 DEFENSE NUCLEAR NONPROLIFERATION

6 For an additional amount for ‘‘Defense Nuclear Non7 proliferation’’, $63,000,000, to remain available until ex8 pended. 

9 CHAPTER 5

10 DEPARTMENT OF DEFENSE 

11 MILITARY CONSTRUCTION, ARMY

12 For an additional amount for ‘‘Military Construction, 

13 Army’’, $1,255,890,000, to remain available until Sep14 tember 30, 2008: Provided, That notwithstanding any other 

15 provision of law, such funds may be obligated and expended 

16 to carry out planning and design and military construction 

17 projects not otherwise authorized by law: Provided further, 

18 That of the funds provided under this heading, not to exceed 

19 $173,700,000 shall be available for study, planning, design, 

20 and architect and engineer services: Provided further, That 

21 of the funds made available under this heading, 

22 $369,690,000 shall not be obligated or expended until the 

23 Secretary of Defense submits a detailed report explaining 

24 how military road construction is coordinated with NATO 

25 and coalition nations: Provided further, That of the funds 
32

•HR 2206 EAH 

1 made available under this heading, $401,700,000 shall not 

2 be obligated or expended until the Secretary of Defense sub3 mits a detailed stationing plan to support Army end4 strength growth to the Committees on Appropriations of the 

5 House of Representatives and the Senate: Provided further, 

6 That of the funds provided under this heading, 

7 $274,800,000 shall not be obligated or expended until the 

8 Secretary of Defense certifies that none of the funds are to 

9 be used for the purpose of providing facilities for the perma10 nent basing of United States military personnel in Iraq. 

11 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

12 For an additional amount for ‘‘Military Construction, 

13 Navy and Marine Corps’’, $370,990,000, to remain avail14 able until September 30, 2008: Provided, That notwith15 standing any other provision of law, such funds may be 

16 obligated and expended to carry out planning and design 

17 and military construction projects not otherwise authorized 

18 by law: Provided further, That of the funds provided under 

19 this heading, not to exceed $49,600,000 shall be available 

20 for study, planning, design, and architect and engineer 

21 services: Provided further, That of the funds made available 

22 under this heading, $324,270,000 shall not be obligated or 

23 expended until the Secretary of Defense submits a detailed 

24 stationing plan to support Marine Corps end-strength 
33

•HR 2206 EAH 

1 growth to the Committees on Appropriations of the House 

2 of Representatives and the Senate. 

3 MILITARY CONSTRUCTION, AIR FORCE

4 For an additional amount for ‘‘Military Construction, 

5 Air Force’’, $43,300,000, to remain available until Sep6 tember 30, 2008: Provided, That notwithstanding any other 

7 provision of law, such funds may be obligated and expended 

8 to carry out planning and design and military construction 

9 projects not otherwise authorized by law: Provided further, 

10 That of the funds provided under this heading, not to exceed 

11 $3,000,000 shall be available for study, planning, design, 

12 and architect and engineer services. 

13 GENERAL PROVISION—THIS CHAPTER 

14 SEC. 1501. (a) Funds provided in this Act for the fol15 lowing accounts shall be made available for programs under 

16 the conditions contained in the language of the joint explan17 atory statement of managers accompanying the conference 

18 report on H.R. 1591 of the 110th Congress (H. Rept. 110–

19 107): 

20 ‘‘Military Construction, Army’’. 

21 ‘‘Military Construction, Navy and Marine 

22 Corps’’. 

23 ‘‘Military Construction, Air Force’’. 

24 (b) The Secretary of Defense shall submit all reports 

25 requested in House Report 110–60 and Senate Report 110–
34

•HR 2206 EAH 

1 37 to the Committees on Appropriations of both Houses of 

2 Congress. 

3 CHAPTER 6

4 DEPARTMENT OF STATE AND RELATED AGENCY 

5 DEPARTMENT OF STATE 

6 ADMINISTRATION OF FOREIGN AFFAIRS

7 DIPLOMATIC AND CONSULAR PROGRAMS

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount for ‘‘Diplomatic and Con10 sular Programs’’, $836,555,000, to remain available until 

11 September 30, 2008, of which $64,655,000 for World Wide 

12 Security Upgrades is available until expended: Provided, 

13 That of the funds appropriated under this heading, not 

14 more than $20,000,000 shall be made available for public 

15 diplomacy programs: Provided further, That prior to the 

16 obligation of funds pursuant to the previous proviso, the 

17 Secretary of State shall submit a report to the Committees 

18 on Appropriations describing a comprehensive public diplo19 macy strategy, with goals and expected results, for fiscal 

20 years 2007 and 2008: Provided further, That 20 percent 

21 of the amount available for Iraq operations shall not be obli22 gated until the Committees on Appropriations receive and 

23 approve a detailed plan for expenditure, prepared by the 

24 Secretary of State, and submitted within 60 days after the 

25 date of enactment of this Act: Provided further, That of the 

26 amount made available under this heading for Iraq, not 
35

•HR 2206 EAH 

1 to exceed $20,000,000 may be transferred to, and merged 

2 with, funds in the ‘‘Emergencies in the Diplomatic and 

3 Consular Service’’ appropriations account, to be available 

4 only for terrorism rewards. 

5 OFFICE OF THE INSPECTOR GENERAL

6 (INCLUDING TRANSFER OF FUNDS)

7 For an additional amount for ‘‘Office of Inspector 

8 General’’, $35,000,000, to remain available until December 

9 31, 2008: Provided, That such amount shall be transferred 

10 to the Special Inspector General for Iraq Reconstruction for 

11 reconstruction oversight. 

12 EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

13 For an additional amount for ‘‘Educational and Cul14 tural Exchange Programs’’, $20,000,000, to remain avail15 able until expended. 

16 INTERNATIONAL ORGANIZATIONS

17 CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING

18 ACTIVITIES

19 For an additional amount for ‘‘Contributions for 

20 International Peacekeeping Activities’’, $283,000,000, to re21 main available until September 30, 2008. 

22 RELATED AGENCY 

23 BROADCASTING BOARD OF GOVERNORS

24 INTERNATIONAL BROADCASTING OPERATIONS

25 For an additional amount for ‘‘International Broad26 casting Operations’’ for activities related to broadcasting to 
36

•HR 2206 EAH 

1 the Middle East, $10,000,000, to remain available until 

2 September 30, 2008. 

3 BILATERAL ECONOMIC ASSISTANCE 

4 FUNDS APPROPRIATED TO THE PRESIDENT

5 UNITED STATES AGENCY FOR INTERNATIONAL

6 DEVELOPMENT

7 CHILD SURVIVAL AND HEALTH PROGRAMS FUND

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount for ‘‘Child Survival and 

10 Health Programs Fund’’, $161,000,000, to remain available 

11 until September 30, 2008: Provided, That notwithstanding 

12 any other provision of law, if the President determines and 

13 reports to the Committees on Appropriations that the 

14 human-to-human transmission of the avian influenza virus 

15 is efficient and sustained, and is spreading internationally, 

16 funds made available under the heading ‘‘Millennium Chal17 lenge Corporation’’ and ‘‘Global HIV/AIDS Initiative’’ in 

18 prior Acts making appropriations for foreign operations, 

19 export financing, and related programs may be transferred 

20 to, and merged with, funds made available under this head21 ing to combat avian influenza: Provided further, That funds 

22 made available pursuant to the authority of the previous 

23 proviso shall be subject to the regular notification proce24 dures of the Committees on Appropriations. 
37

•HR 2206 EAH 

1 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

2 For an additional amount for ‘‘International Disaster 

3 and Famine Assistance’’, $105,000,000, to remain available 

4 until expended. 

5 OPERATING EXPENSES OF THE UNITED STATES AGENCY

6 FOR INTERNATIONAL DEVELOPMENT

7 For an additional amount for ‘‘Operating Expenses of 

8 the United States Agency for International Development’’, 

9 $5,700,000, to remain available until September 30, 2008. 

10 OTHER BILATERAL ECONOMIC ASSISTANCE

11 ECONOMIC SUPPORT FUND

12 For an additional amount for ‘‘Economic Support 

13 Fund’’, $2,502,000,000, to remain available until Sep14 tember 30, 2008: Provided, That of the funds appropriated 

15 under this heading, $57,400,000 shall be made available to 

16 nongovernmental organizations in Iraq for economic and 

17 social development programs and activities in areas of con18 flict: Provided further, That the responsibility for policy de19 cisions and justifications for the use of funds appropriated 

20 by the previous proviso shall be the responsibility of the 

21 United States Chief of Mission in Iraq: Provided further, 

22 That none of the funds appropriated under this heading 

23 in this Act or in prior Acts making appropriations for for24 eign operations, export financing, and related programs 

25 may be made available for the Political Participation Fund 

26 and the National Institutions Fund: Provided further, That 
38

•HR 2206 EAH 

1 of the funds made available under the heading ‘‘Economic 

2 Support Fund’’ in Public Law 109–234 for Iraq to promote 

3 democracy, rule of law and reconciliation, $2,000,000 

4 should be made available for the United States Institute of 

5 Peace for programs and activities in Afghanistan to remain 

6 available until September 30, 2008. 

7 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

8 STATES

9 For an additional amount for ‘‘Assistance for Eastern 

10 Europe and the Baltic States’’, $214,000,000, to remain 

11 available until September 30, 2008, for assistance for 

12 Kosovo. 

13 DEPARTMENT OF STATE

14 DEMOCRACY FUND

15 For an additional amount for ‘‘Democracy Fund’’, 

16 $255,000,000, to remain available until September 30, 

17 2008: Provided, That of the funds appropriated under this 

18 heading, not less than $190,000,000 shall be made available 

19 for the Human Rights and Democracy Fund of the Bureau 

20 of Democracy, Human Rights, and Labor, Department of 

21 State, and not less than $60,000,000 shall be made available 

22 for the United States Agency for International Develop23 ment, for democracy, human rights and rule of law pro24 grams in Iraq: Provided further, That not later than 60 

25 days after enactment of this Act, the Secretary of State shall 

26 submit a report to the Committees on Appropriations de-
39

•HR 2206 EAH 

1 scribing a comprehensive, long-term strategy, with goals 

2 and expected results, for strengthening and advancing de3 mocracy in Iraq. 

4 INTERNATIONAL NARCOTICS CONTROL AND LAW

5 ENFORCEMENT

6 For an additional amount for ‘‘International Nar7 cotics Control and Law Enforcement’’, $210,000,000, to re8 main available until September 30, 2008. 

9 MIGRATION AND REFUGEE ASSISTANCE

10 For an additional amount for ‘‘Migration and Refugee 

11 Assistance’’, $71,500,000, to remain available until Sep12 tember 30, 2008, of which not less than $5,000,000 shall 

13 be made available to rescue Iraqi scholars. 

14 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

15 ASSISTANCE FUND

16 For an additional amount for ‘‘United States Emer17 gency Refugee and Migration Assistance Fund’’, 

18 $30,000,000, to remain available until expended. 

19 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

20 RELATED PROGRAMS

21 For an additional amount for ‘‘Nonproliferation, 

22 Anti-Terrorism, Demining and Related Programs’’, 

23 $27,500,000, to remain available until September 30, 2008. 
40

•HR 2206 EAH 

1 DEPARTMENT OF THE TREASURY

2 INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

3 For an additional amount for ‘‘International Affairs 

4 Technical Assistance’’, $2,750,000, to remain available 

5 until September 30, 2008. 

6 MILITARY ASSISTANCE 

7 FUNDS APPROPRIATED TO THE PRESIDENT

8 FOREIGN MILITARY FINANCING PROGRAM

9 For an additional amount for ‘‘Foreign Military Fi10 nancing Program’’, $220,000,000, to remain available until 

11 September 30, 2008. 

12 PEACEKEEPING OPERATIONS

13 For an additional amount for ‘‘Peacekeeping Oper14 ations’’, $190,000,000, to remain available until September 

15 30, 2008: Provided, That not later than 30 days after enact16 ment of this Act and every 30 days thereafter until Sep17 tember 30, 2008, the Secretary of State shall submit a re18 port to the Committees on Appropriations detailing the ob19 ligation and expenditure of funds made available under this 

20 heading in this Act and in prior Acts making appropria21 tions for foreign operations, export financing, and related 

22 programs. 

23 GENERAL PROVISION—THIS CHAPTER 

24 AUTHORIZATION OF FUNDS

25 SEC. 1601. Funds appropriated by this Act may be 

26 obligated and expended notwithstanding section 10 of Pub-
41

•HR 2206 EAH 

1 lic Law 91–672 (22 U.S.C. 2412), section 15 of the State 

2 Department Basic Authorities Act of 1956 (22 U.S.C. 

3 2680), section 313 of the Foreign Relations Authorization 

4 Act, Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and 

5 section 504(a)(1) of the National Security Act of 1947 (50 

6 U.S.C. 414(a)(1)). 

7 TITLE II—HURRICANE KATRINA 

8 RECOVERY 

9 DEPARTMENT OF HOMELAND SECURITY 

10 FEDERAL EMERGENCY MANAGEMENT AGENCY

11 DISASTER RELIEF

12 For an additional amount for ‘‘Disaster Relief’’, 

13 $3,400,000,000, to remain available until expended. 

14 TITLE III—ADDITIONAL DE15 FENSE, INTERNATIONAL AF16 FAIRS, AND HOMELAND SECU17 RITY PROVISIONS 

18 CHAPTER 1

19 DEPARTMENT OF AGRICULTURE 

20 FOREIGN AGRICULTURAL SERVICE

21 PUBLIC LAW 480 TITLE II GRANTS

22 For an additional amount for ‘‘Public Law 480 Title 

23 II Grants’’, during the current fiscal year, not otherwise 

24 recoverable, and unrecovered prior years’ costs, including 

25 interest thereon, under the Agricultural Trade Development 
42

•HR 2206 EAH 

1 and Assistance Act of 1954, for commodities supplied in 

2 connection with dispositions abroad under title II of said 

3 Act, $100,000,000, to remain available until expended. 

4 GENERAL PROVISION—THIS CHAPTER 

5 SEC. 3101. There is hereby appropriated $10,000,000 

6 to reimburse the Commodity Credit Corporation for the re7 lease of eligible commodities under section 302(f)(2)(A) of 

8 the Bill Emerson Humanitarian Trust Act (7 U.S.C. 

9 1736f–1): Provided, That any such funds made available 

10 to reimburse the Commodity Credit Corporation shall only 

11 be used to replenish the Bill Emerson Humanitarian Trust. 

12 CHAPTER 2

13 DEPARTMENT OF JUSTICE 

14 FEDERAL BUREAU OF INVESTIGATION

15 SALARIES AND EXPENSES

16 For an additional amount for ‘‘Salaries and Ex17 penses’’, $139,740,000, of which $129,740,000 is to remain 

18 available until September 30, 2008 and $10,000,000 is to 

19 remain available until expended to implement corrective ac20 tions in response to the findings and recommendations in 

21 the Department of Justice Office of Inspector General report 

22 entitled, ‘‘A Review of the Federal Bureau of Investigation’s 

23 Use of National Security Letters’’, of which $500,000 shall 

24 be transferred to and merged with ‘‘Department of Justice, 

25 Office of the Inspector General’’. 
43

•HR 2206 EAH 

1 DRUG ENFORCEMENT ADMINISTRATION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $3,698,000, to remain available until September 

5 30, 2008. 

6 GENERAL PROVISION—THIS CHAPTER 

7 SEC. 3201. Funds provided in this Act for the ‘‘De8 partment of Justice, Federal Bureau of Investigation, Sala9 ries and Expenses’’, shall be made available according to 

10 the language relating to such account in the joint explana11 tory statement accompanying the conference report on H.R. 

12 1591 of the 110th Congress (H. Rept. 110–107). 

13 CHAPTER 3

14 DEPARTMENT OF DEFENSE—MILITARY 

15 MILITARY PERSONNEL 

16 MILITARY PERSONNEL, ARMY

17 For an additional amount for ‘‘Military Personnel, 

18 Army’’, $343,080,000. 

19 MILITARY PERSONNEL, NAVY

20 For an additional amount for ‘‘Military Personnel, 

21 Navy’’, $408,283,000. 

22 MILITARY PERSONNEL, MARINE CORPS

23 For an additional amount for ‘‘Military Personnel, 

24 Marine Corps’’, $108,956,000. 
44

•HR 2206 EAH 

1 MILITARY PERSONNEL, AIR FORCE

2 For an additional amount for ‘‘Military Personnel, 

3 Air Force’’, $139,300,000. 

4 RESERVE PERSONNEL, NAVY

5 For an additional amount for ‘‘Reserve Personnel, 

6 Navy’’, $8,223,000. 

7 RESERVE PERSONNEL, MARINE CORPS

8 For an additional amount for ‘‘Reserve Personnel, Ma9 rine Corps’’, $5,660,000. 

10 RESERVE PERSONNEL, AIR FORCE

11 For an additional amount for ‘‘Reserve Personnel, Air 

12 Force’’, $6,073,000. 

13 NATIONAL GUARD PERSONNEL, ARMY

14 For an additional amount for ‘‘National Guard Per15 sonnel, Army’’, $109,261,000. 

16 NATIONAL GUARD PERSONNEL, AIR FORCE

17 For an additional amount for ‘‘National Guard Per18 sonnel, Air Force’’, $19,533,000. 

19 OPERATION AND MAINTENANCE 

20 OPERATION AND MAINTENANCE, NAVY

21 For an additional amount for ‘‘Operation and Mainte22 nance, Navy’’, $24,000,000. 
45

•HR 2206 EAH 

1 STRATEGIC RESERVE READINESS FUND

2 (INCLUDING TRANSFER OF FUNDS)

3 In addition to amounts provided in this or any other 

4 Act, for training, operations, repair of equipment, pur5 chases of equipment, and other expenses related to improv6 ing the readiness of non-deployed United States military 

7 forces, $1,615,000,000, to remain available until September 

8 30, 2009; of which $1,000,000,000 shall be transferred to 

9 ‘‘National Guard and Reserve Equipment’’ for the purchase 

10 of equipment for the Army National Guard; and of which 

11 $615,000,000 shall be transferred by the Secretary of De12 fense only to appropriations for military personnel, oper13 ation and maintenance, procurement, and defense working 

14 capital funds to accomplish the purposes provided herein: 

15 Provided, That the funds transferred shall be merged with 

16 and shall be available for the same purposes and for the 

17 same time period as the appropriation to which transferred: 

18 Provided further, That the Secretary of Defense shall, not 

19 fewer than 30 days prior to making transfers under this 

20 authority, notify the congressional defense committees in 

21 writing of the details of any such transfers made pursuant 

22 to this authority: Provided further, That funds shall be 

23 transferred to the appropriation accounts not later than 

24 120 days after the enactment of this Act: Provided further, 

25 That the transfer authority provided in this paragraph is 
46

•HR 2206 EAH 

1 in addition to any other transfer authority available to the 

2 Department of Defense: Provided further, That upon a de3 termination that all or part of the funds transferred from 

4 this appropriation are not necessary for the purposes pro5 vided herein, such amounts may be transferred back to this 

6 appropriation. 

7 PROCUREMENT 

8 OTHER PROCUREMENT, ARMY

9 For an additional amount for ‘‘Other Procurement, 

10 Army’’, $1,217,000,000, to remain available until Sep11 tember 30, 2009: Provided, That the amount provided under 

12 this heading shall be available only for the purchase of mine 

13 resistant ambush protected vehicles. 

14 OTHER PROCUREMENT, NAVY

15 For an additional amount for ’’Other Procurement, 

16 Navy’’, $130,040,000, to remain available until September 

17 30, 2009: Provided, That the amount provided under this 

18 heading shall be available only for the purchase of mine 

19 resistant ambush protected vehicles. 

20 PROCUREMENT, MARINE CORPS

21 For an additional amount for ‘‘Procurement, Marine 

22 Corps’’, $1,263,360,000, to remain available until Sep23 tember 30, 2009: Provided, That the amount provided under 

24 this heading shall be available only for the purchase of mine 

25 resistant ambush protected vehicles. 
47

•HR 2206 EAH 

1 OTHER PROCUREMENT, AIR FORCE

2 For an additional amount for ‘‘Other Procurement, 

3 Air Force’’, $139,040,000, to remain available until Sep4 tember 30, 2009: Provided, That the amount provided under 

5 this heading shall be available only for the purchase of mine 

6 resistant ambush protected vehicles. 

7 PROCUREMENT, DEFENSE-WIDE

8 For an additional amount for ‘‘Procurement, Defense9 Wide’’, $258,860,000, to remain available until September 

10 30, 2009: Provided, That the amount provided under this 

11 heading shall be available only for the purchase of mine 

12 resistant ambush protected vehicles. 

13 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

14 DEFENSE HEALTH PROGRAM

15 (INCLUDING TRANSFER OF FUNDS)

16 For an additional amount for ‘‘Defense Health Pro17 gram’’, $1,878,706,000; of which $1,429,006,000 shall be for 

18 operation and maintenance, including $600,000,000 which 

19 shall be available for the treatment of traumatic brain in20 jury and post-traumatic stress disorder and remain avail21 able until September 30, 2008; of which $118,000,000 shall 

22 be for procurement, to remain available until September 30, 

23 2009; and of which $331,700,000 shall be for research, devel24 opment, test and evaluation, to remain available until Sep25 tember 30, 2008: Provided, That if the Secretary of Defense 
48

•HR 2206 EAH 

1 determines that funds made available in this paragraph for 

2 the treatment of traumatic brain injury and post-traumatic 

3 stress disorder are in excess of the requirements of the De4 partment of Defense, the Secretary may transfer amounts 

5 in excess of that requirement to the Department of Veterans 

6 Affairs to be available only for the same purpose. 

7 GENERAL PROVISIONS—THIS CHAPTER 

8 SEC. 3301. None of the funds appropriated or other9 wise made available by this or any other Act shall be obli10 gated or expended by the United States Government for a 

11 purpose as follows: 

12 (1) To establish any military installation or base 

13 for the purpose of providing for the permanent sta14 tioning of United States Armed Forces in Iraq. 

15 (2) To exercise United States control over any 

16 oil resource of Iraq. 

17 SEC. 3302. None of the funds made available in this 

18 Act may be used in contravention of the following laws en19 acted or regulations promulgated to implement the United 

20 Nations Convention Against Torture and Other Cruel, In21 human or Degrading Treatment or Punishment (done at 

22 New York on December 10, 1984)—

23 (1) section 2340A of title 18, United States Code; 

24 (2) section 2242 of the Foreign Affairs Reform 

25 and Restructuring Act of 1998 (division G of Public 
49

•HR 2206 EAH 

1 Law 105–277; 112 Stat. 2681–822; 8 U.S.C. 1231 

2 note) and regulations prescribed thereto, including 

3 regulations under part 208 of title 8, Code of Federal 

4 Regulations, and part 95 of title 22, Code of Federal 

5 Regulations; and 

6 (3) sections 1002 and 1003 of the Department of 

7 Defense, Emergency Supplemental Appropriations to 

8 Address Hurricanes in the Gulf of Mexico, and Pan9 demic Influenza Act, 2006 (Public Law 109–148). 

10 SEC. 3303. (a) REPORT BY SECRETARY OF DE11 FENSE.—Not later than 30 days after the date of the enact12 ment of this Act, the Secretary of Defense shall submit to 

13 the congressional defense committees a report that contains 

14 individual transition readiness assessments by unit of Iraq 

15 and Afghan security forces. The Secretary of Defense shall 

16 submit to the congressional defense committees updates of 

17 the report required by this subsection every 90 days after 

18 the date of the submission of the report until October 1, 

19 2008. The report and updates of the report required by this 

20 subsection shall be submitted in classified form. 

21 (b) REPORT BY OMB.—

22 (1) The Director of the Office of Management 

23 and Budget, in consultation with the Secretary of De24 fense; the Commander, Multi-National Security Tran25 sition Command—Iraq; and the Commander, Com-
50

•HR 2206 EAH 

1 bined Security Transition Command—Afghanistan, 

2 shall submit to the congressional defense committees 

3 not later than 120 days after the date of the enact4 ment of this Act and every 90 days thereafter a report 

5 on the proposed use of all funds under each of the 

6 headings ‘‘Iraq Security Forces Fund’’ and ‘‘Afghani7 stan Security Forces Fund’’ on a project-by-project 

8 basis, for which the obligation of funds is anticipated 

9 during the three-month period from such date, includ10 ing estimates by the commanders referred to in this 

11 paragraph of the costs required to complete each such 

12 project. 

13 (2) The report required by this subsection shall 

14 include the following: 

15 (A) The use of all funds on a project-by16 project basis for which funds appropriated under 

17 the headings referred to in paragraph (1) were 

18 obligated prior to the submission of the report, 

19 including estimates by the commanders referred 

20 to in paragraph (1) of the costs to complete each 

21 project. 

22 (B) The use of all funds on a project-by23 project basis for which funds were appropriated 

24 under the headings referred to in paragraph (1) 

25 in prior appropriations Acts, or for which funds 
51

•HR 2206 EAH 

1 were made available by transfer, reprogram2 ming, or allocation from other headings in prior 

3 appropriations Acts, including estimates by the 

4 commanders referred to in paragraph (1) of the 

5 costs to complete each project. 

6 (C) An estimated total cost to train and 

7 equip the Iraq and Afghan security forces, 

8 disaggregated by major program and sub-ele9 ments by force, arrayed by fiscal year. 

10 (c) NOTIFICATION.—The Secretary of Defense shall no11 tify the congressional defense committees of any proposed 

12 new projects or transfers of funds between sub-activity 

13 groups in excess of $15,000,000 using funds appropriated 

14 by this Act under the headings ‘‘Iraq Security Forces 

15 Fund’’ and ‘‘Afghanistan Security Forces Fund’’. 

16 SEC. 3304. None of the funds appropriated or other17 wise made available by this Act may be obligated or ex18 pended to provide award fees to any defense contractor con19 trary to the provisions of section 814 of the National De20 fense Authorization Act, Fiscal Year 2007 (Public Law 

21 109–364). 

22 SEC. 3305. Not more than 85 percent of the funds ap23 propriated to the Department of Defense in this Act for op24 eration and maintenance shall be available for obligation 

25 unless and until the Secretary of Defense submits to the con-
52

•HR 2206 EAH 

1 gressional defense committees a report detailing the use of 

2 Department of Defense funded service contracts conducted 

3 in the theater of operations in support of United States 

4 military and reconstruction activities in Iraq and Afghani5 stan: Provided, That the report shall provide detailed infor6 mation specifying the number of contracts and contract 

7 costs used to provide services in fiscal year 2006, with sub8 allocations by major service categories: Provided further, 

9 That the report also shall include estimates of the number 

10 of contracts to be executed in fiscal year 2007: Provided 

11 further, That the report shall include the number of con12 tractor personnel in Iraq and Afghanistan funded by the 

13 Department of Defense: Provided further, That the report 

14 shall be submitted to the congressional defense committees 

15 not later than August 1, 2007. 

16 SEC. 3306. Section 1477 of title 10, United States 

17 Code, is amended—

18 (1) in subsection (a), by striking ‘‘A death gra19 tuity’’ and inserting ‘‘Subject to subsection (d), a 

20 death gratuity’’; 

21 (2) by redesignating subsection (d) as subsection 

22 (e) and, in such subsection, by striking ‘‘If an eligible 

23 survivor dies before he’’ and inserting ‘‘If a person en24 titled to all or a portion of a death gratuity under 

25 subsection (a) or (d) dies before the person’’; and 
53

•HR 2206 EAH 

1 (3) by inserting after subsection (c) the following 

2 new subsection (d): 

3 ‘‘(d) During the period beginning on the date of the 

4 enactment of this subsection and ending on September 30, 

5 2007, a person covered by section 1475 or 1476 of this title 

6 may designate another person to receive not more than 50 

7 percent of the amount payable under section 1478 of this 

8 title. The designation shall indicate the percentage of the 

9 amount, to be specified only in 10 percent increments up 

10 to the maximum of 50 percent, that the designated person 

11 may receive. The balance of the amount of the death gra12 tuity shall be paid to or for the living survivors of the per13 son concerned in accordance with paragraphs (1) through 

14 (5) of subsection (a).’’. 

15 SEC. 3307. (a) INSPECTION OF MILITARY MEDICAL

16 TREATMENT FACILITIES, MILITARY QUARTERS HOUSING

17 MEDICAL HOLD PERSONNEL, AND MILITARY QUARTERS

18 HOUSING MEDICAL HOLDOVER PERSONNEL.—

19 (1) IN GENERAL.—Not later than 180 days after 

20 the date of the enactment of this Act, and annually 

21 thereafter, the Secretary of Defense shall inspect each 

22 facility of the Department of Defense as follows: 

23 (A) Each military medical treatment facil24 ity. 
54

•HR 2206 EAH 

1 (B) Each military quarters housing medical 

2 hold personnel. 

3 (C) Each military quarters housing medical 

4 holdover personnel. 

5 (2) PURPOSE.—The purpose of an inspection 

6 under this subsection is to ensure that the facility or 

7 quarters concerned meets acceptable standards for the 

8 maintenance and operation of medical facilities, 

9 quarters housing medical hold personnel, or quarters 

10 housing medical holdover personnel, as applicable. 

11 (b) ACCEPTABLE STANDARDS.—For purposes of this 

12 section, acceptable standards for the operation and mainte13 nance of military medical treatment facilities, military 

14 quarters housing medical hold personnel, or military quar15 ters housing medical holdover personnel are each of the fol16 lowing: 

17 (1) Generally accepted standards for the accredi18 tation of medical facilities, or for facilities used to 

19 quarter individuals with medical conditions that may 

20 require medical supervision, as applicable, in the 

21 United States. 

22 (2) Where appropriate, standards under the 

23 Americans with Disabilities Act of 1990 (42 U.S.C. 

24 12101 et seq.). 
55

•HR 2206 EAH 

1 (c) ADDITIONAL INSPECTIONS ON IDENTIFIED DEFI2 CIENCIES.—

3 (1) IN GENERAL.—In the event a deficiency is 

4 identified pursuant to subsection (a) at a facility or 

5 quarters described in paragraph (1) of that sub6 section—

7 (A) the commander of such facility or quar8 ters, as applicable, shall submit to the Secretary 

9 a detailed plan to correct the deficiency; and 

10 (B) the Secretary shall reinspect such facil11 ity or quarters, as applicable, not less often than 

12 once every 180 days until the deficiency is cor13 rected. 

14 (2) CONSTRUCTION WITH OTHER INSPECTIONS.—

15 An inspection of a facility or quarters under this sub16 section is in addition to any inspection of such facil17 ity or quarters under subsection (a). 

18 (d) REPORTS ON INSPECTIONS.—A complete copy of 

19 the report on each inspection conducted under subsections 

20 (a) and (c) shall be submitted in unclassified form to the 

21 applicable military medical command and to the congres22 sional defense committees. 

23 (e) REPORT ON STANDARDS.—In the event no stand24 ards for the maintenance and operation of military medical 

25 treatment facilities, military quarters housing medical hold 
56

•HR 2206 EAH 

1 personnel, or military quarters housing medical holdover 

2 personnel exist as of the date of the enactment of this Act, 

3 or such standards as do exist do not meet acceptable stand4 ards for the maintenance and operation of such facilities 

5 or quarters, as the case may be, the Secretary shall, not 

6 later than 30 days after that date, submit to the congres7 sional defense committees a report setting forth the plan of 

8 the Secretary to ensure—

9 (1) the adoption by the Department of standards 

10 for the maintenance and operation of military med11 ical facilities, military quarters housing medical hold 

12 personnel, or military quarters housing medical hold13 over personnel, as applicable, that meet—

14 (A) acceptable standards for the mainte15 nance and operation of such facilities or quar16 ters, as the case may be; and 

17 (B) where appropriate, standards under the 

18 Americans with Disabilities Act of 1990; and 

19 (2) the comprehensive implementation of the 

20 standards adopted under paragraph (1) at the earliest 

21 date practicable. 

22 SEC. 3308. (a) AWARD OF MEDAL OF HONOR TO

23 WOODROW W. KEEBLE FOR VALOR DURING KOREAN

24 WAR.—Notwithstanding any applicable time limitation 

25 under section 3744 of title 10, United States Code, or any 
57

•HR 2206 EAH 

1 other time limitation with respect to the award of certain 

2 medals to individuals who served in the Armed Forces, the 

3 President may award to Woodrow W. Keeble the Medal of 

4 Honor under section 3741 of that title for the acts of valor 

5 described in subsection (b). 

6 (b) ACTS OF VALOR.—The acts of valor referred to in 

7 subsection (a) are the acts of Woodrow W. Keeble, then-act8 ing platoon leader, carried out on October 20, 1951, during 

9 the Korean War. 

10 (TRANSFER OF FUNDS)

11 SEC. 3309. Of the amount appropriated under the 

12 heading ‘‘Other Procurement, Army’’, in title III of division 

13 A of Public Law 109–148, $6,250,000 shall be transferred 

14 to ‘‘Military Construction, Army’’. 

15 SEC. 3310. The Secretary of Defense, notwithstanding 

16 any other provision of law, acting through the Office of Eco17 nomic Adjustment or the Office of Dependents Education 

18 of the Department of Defense, shall use not less than 

19 $10,000,000 of funds made available in this Act under the 

20 heading ‘‘Operation and Maintenance, Defense-Wide’’ to 

21 make grants and supplement other Federal funds to provide 

22 special assistance to local education agencies. 

23 SEC. 3311. Congress finds that United States military 

24 units should not enter into combat unless they are fully ca25 pable of performing their assigned mission. Congress further 

26 finds that this is the policy of the Department of Defense. 
58

•HR 2206 EAH 

1 The Secretary of Defense shall notify Congress of any 

2 changes to this policy. 

3 CHAPTER 4

4 DEPARTMENT OF ENERGY 

5 ATOMIC ENERGY DEFENSE ACTIVITIES 

6 NATIONAL NUCLEAR SECURITY ADMINISTRATION

7 DEFENSE NUCLEAR NONPROLIFERATION

8 For an additional amount for ‘‘Defense Nuclear Non9 proliferation’’, $72,000,000 is provided for the Inter10 national Nuclear Materials Protection and Cooperation 

11 Program, to remain available until expended. 

12 GENERAL PROVISION—THIS CHAPTER 

13 (TRANSFER OF FUNDS)

14 SEC. 3401. The Administrator of the National Nuclear 

15 Security Administration is authorized to transfer up to 

16 $1,000,000 from Defense Nuclear Nonproliferation to the 

17 Office of the Administrator during fiscal year 2007 sup18 porting nuclear nonproliferation activities. 

19 CHAPTER 5

20 DEPARTMENT OF HOMELAND SECURITY 

21 ANALYSIS AND OPERATIONS

22 For an additional amount for ‘‘Analysis and Oper23 ations’’, $8,000,000, to remain available until September 

24 30, 2008, to be used for support of the State and Local Fu25 sion Center program: Provided, That starting July 1, 2007, 
59

•HR 2206 EAH 

1 the Secretary of Homeland Security shall submit quarterly 

2 reports to the Committees on Appropriations of the Senate 

3 and the House of Representatives detailing the information 

4 required in House Report 110–107. 

5 UNITED STATES CUSTOMS AND BORDER PROTECTION

6 SALARIES AND EXPENSES

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Salaries and Ex9 penses’’, $75,000,000, to remain available until September 

10 30, 2008, to support hiring not less than 400 additional 

11 United States Customs and Border Protection Officers, as 

12 well as additional intelligence analysts, trade specialists, 

13 and support staff to target and screen U.S.-bound cargo on 

14 the Northern Border, at overseas locations, and at the Na15 tional Targeting Center; to support hiring additional staff16 ing required for Northern Border Air and Marine oper17 ations; to implement Security and Accountability For 

18 Every Port Act of 2006 (Public Law 109–347) require19 ments; to advance the goals of the Secure Freight Initiative 

20 to improve significantly the ability of United States Cus21 toms and Border Protection to target and analyze U.S.-

22 bound cargo containers; to expand overseas screening and 

23 physical inspection capacity for U.S.-bound cargo; to pro24 cure and integrate non-intrusive inspection equipment into 

25 inspection and radiation detection operations; and to im26 prove supply chain security, to include enhanced analytic 
60

•HR 2206 EAH 

1 and targeting systems using data collected via commercial 

2 and government technologies and databases: Provided, That 

3 up to $3,000,000 shall be transferred to Federal Law En4 forcement Training Center ‘‘Salaries and Expenses’’, for 

5 basic training costs associated with the additional per6 sonnel funded under this heading: Provided further, That 

7 the Secretary shall submit an expenditure plan for the use 

8 of these funds to the Committees on Appropriations of the 

9 Senate and the House of Representatives no later than 30 

10 days after enactment of this Act: Provided further, That the 

11 Secretary shall notify the Committees on Appropriations of 

12 the Senate and the House of Representatives immediately 

13 if United States Customs and Border Protection does not 

14 expect to achieve its plan of having at least 1,158 Border 

15 Patrol agents permanently deployed to the Northern Border 

16 by the end of fiscal year 2007, and explain in detail the 

17 reasons for any shortfall. 

18 AIR AND MARINE INTERDICTION, OPERATIONS, 

19 MAINTENANCE, AND PROCUREMENT

20 For an additional amount for ‘‘Air and Marine Inter21 diction, Operations, Maintenance, and Procurement’’, for 

22 air and marine operations on the Northern Border, includ23 ing the final Northern Border air wing, $75,000,000, to re24 main available until September 30, 2008, to accelerate 

25 planned deployment of Northern Border Air and Marine 

26 operations, including establishment of the final Northern 
61

•HR 2206 EAH 

1 Border airwing, procurement of assets such as fixed wing 

2 aircraft, helicopters, unmanned aerial systems, marine and 

3 riverine vessels, and other equipment, relocation of aircraft, 

4 site acquisition, and the design and building of facilities: 

5 Provided, That the Secretary shall submit an expenditure 

6 plan for the use of these funds to the Committees on Appro7 priations of the Senate and the House of Representatives 

8 no later than 30 days after enactment of this Act. 

9 UNITED STATES IMMIGRATION AND CUSTOMS

10 ENFORCEMENT

11 SALARIES AND EXPENSES

12 For an additional amount for ‘‘Salaries and Ex13 penses’’, $6,000,000, to remain available until September 

14 30, 2008; of which $5,000,000 shall be for the creation of 

15 a security advisory opinion unit within the Visa Security 

16 Program; and of which $1,000,000 shall be for the Human 

17 Smuggling and Trafficking Center. 

18 TRANSPORTATION SECURITY ADMINISTRATION

19 AVIATION SECURITY

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

21 $390,000,000; of which $285,000,000 shall be for procure22 ment and installation of checked baggage explosives detec23 tion systems, to remain available until expended; of which 

24 $25,000,000 shall be for checkpoint explosives detection 

25 equipment and pilot screening technologies, to remain 
62

•HR 2206 EAH 

1 available until expended; and of which $80,000,000 shall 

2 be for air cargo security, to remain available until Sep3 tember 30, 2009: Provided, That of the air cargo funding 

4 made available under this heading, the Transportation Se5 curity Administration shall hire no fewer than 150 addi6 tional air cargo inspectors to establish a more robust en7 forcement and compliance program; complete air cargo vul8 nerability assessments for all Category X airports; expand 

9 the National Explosives Detection Canine Program by no 

10 fewer than 170 additional canine teams, including the use 

11 of agency led teams; pursue canine screening methods uti12 lized internationally that focus on air samples; and procure 

13 and install explosive detection systems, explosive trace ma14 chines, and other technologies to screen air cargo: Provided 

15 further, That no later than 90 days after the date of enact16 ment of this Act, the Secretary shall provide the Committees 

17 on Appropriations of the Senate and the House of Rep18 resentatives an expenditure plan detailing how the Trans19 portation Security Administration will utilize funding pro20 vided under this heading. 

21 FEDERAL AIR MARSHALS

22 For an additional amount for ‘‘Federal Air Marshals’’, 

23 $5,000,000, to remain available until September 30, 2008: 

24 Provided, That no later than 30 days after enactment of 

25 this Act, the Secretary shall provide the Committees on Ap-
63

•HR 2206 EAH 

1 propriations of the Senate and the House of Representatives 

2 a report on how these additional funds will be allocated. 

3 NATIONAL PROTECTION AND PROGRAMS

4 INFRASTRUCTURE PROTECTION AND INFORMATION

5 SECURITY

6 For an additional amount for ‘‘Infrastructure Protec7 tion and Information Security’’, $24,000,000, to remain 

8 available until September 30, 2008; of which $12,000,000 

9 shall be for development of State and local interoperability 

10 plans as discussed in House Report 110–107; and of which 

11 $12,000,000 shall be for implementation of chemical facility 

12 security regulations: Provided, That within 30 days of the 

13 date of enactment of this Act the Secretary of Homeland 

14 Security shall submit to the Committees on Appropriations 

15 of the Senate and the House of Representatives detailed ex16 penditure plans for execution of these funds: Provided fur17 ther, That within 30 days of the date of enactment of this 

18 Act, the Secretary of Homeland Security shall submit to 

19 the Committees on Appropriations of the Senate and the 

20 House of Representatives a report on the computer forensics 

21 training center detailing the information required in House 

22 Report 110–107. 

23 OFFICE OF HEALTH AFFAIRS

24 For expenses for the ‘‘Office of Health Affairs’’, 

25 $8,000,000, to remain available until September 30, 2008: 
64

•HR 2206 EAH 

1 Provided, That of the amount made available under this 

2 heading, $5,500,000 is for nuclear event public health as3 sessment and planning: Provided further, That the Office 

4 of Health Affairs shall conduct a nuclear event public health 

5 assessment as described in House Report 110–107: Provided 

6 further, That none of the funds made available under this 

7 heading may be obligated until the Committees on Appro8 priations of the Senate and the House of Representatives 

9 receive a plan for expenditure. 

10 FEDERAL EMERGENCY MANAGEMENT AGENCY

11 MANAGEMENT AND ADMINISTRATION

12 For expenses for management and administration of 

13 the Federal Emergency Management Agency (‘‘FEMA’’), 

14 $14,000,000, to remain available until September 30, 2008: 

15 Provided, That of the amount made available under this 

16 heading, $6,000,000 shall be for financial and information 

17 systems, $2,500,000 shall be for interstate mutual aid agree18 ments, $2,500,000 shall be for FEMA Regional Office com19 munication equipment, $2,500,000 shall be for FEMA 

20 strike teams, and $500,000 shall be for the Law Enforce21 ment Liaison Office, the Disability Coordinator and the 

22 National Advisory Council: Provided further, That none of 

23 such funds made available under this heading may be obli24 gated until the Committees on Appropriations of the Senate 

25 and the House of Representatives receive and approve a 
65

•HR 2206 EAH 

1 plan for expenditure: Provided further, That unobligated 

2 amounts in the ‘‘Administrative and Regional Operations’’ 

3 and ‘‘Readiness, Mitigation, Response, and Recovery’’ ac4 counts shall be transferred to ‘‘Management and Adminis5 tration’’ and may be used for any purpose authorized for 

6 such amounts and subject to limitation on the use of such 

7 amounts. 

8 STATE AND LOCAL PROGRAMS

9 For an additional amount for ‘‘State and Local Pro10 grams’’, $247,000,000; of which $110,000,000 shall be for 

11 port security grants pursuant to section 70107(l) of title 

12 46, United States Code to be awarded by September 30, 

13 2007, to tier 1, 2, 3, and 4 ports; of which $100,000,000 

14 shall be for intercity rail passenger transportation, freight 

15 rail, and transit security grants to be awarded by Sep16 tember 30, 2007; of which $35,000,000 shall be for regional 

17 grants and regional technical assistance to tier one Urban 

18 Area Security Initiative cities and other participating gov19 ernments for the purpose of developing all-hazard regional 

20 catastrophic event plans and preparedness, as described in 

21 House Report 110–107; and of which $2,000,000 shall be 

22 for technical assistance for operation and maintenance 

23 training on detection and response equipment that must be 

24 competitively awarded: Provided, That none of the funds 

25 made available under this heading may be obligated for 

26 such regional grants and regional technical assistance until 
66

•HR 2206 EAH 

1 the Committees on Appropriations of the Senate and the 

2 House of Representatives receive and approve a plan for 

3 expenditure: Provided further, That the Federal Emergency 

4 Management Agency shall provide the regional grants and 

5 regional technical assistance expenditure plan to the Com6 mittees on Appropriations of the Senate and the House of 

7 Representatives on or before August 1, 2007: Provided fur8 ther, That funds for such regional grants and regional tech9 nical assistance shall remain available until September 30, 

10 2008. 

11 EMERGENCY MANAGEMENT PERFORMANCE GRANTS

12 For an additional amount for ‘‘Emergency Manage13 ment Performance Grants’’, $50,000,000. 

14 UNITED STATES CITIZENSHIP AND IMMIGRATION

15 SERVICES

16 For an additional amount for expenses of ‘‘United 

17 States Citizenship and Immigration Services’’ to address 

18 backlogs of security checks associated with pending applica19 tions and petitions, $8,000,000, to remain available until 

20 September 30, 2008: Provided, That none of the funds made 

21 available under this heading shall be available for obliga22 tion until the Secretary of Homeland Security, in consulta23 tion with the United States Attorney General, submits to 

24 the Committees on Appropriations of the Senate and the 

25 House of Representatives a plan to eliminate the backlog 

26 of security checks that establishes information sharing pro-
67

•HR 2206 EAH 

1 tocols to ensure United States Citizenship and Immigration 

2 Services has the information it needs to carry out its mis3 sion. 

4 SCIENCE AND TECHNOLOGY

5 RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

6 For an additional amount for ‘‘Research, Develop7 ment, Acquisition, and Operations’’ for air cargo security 

8 research, $5,000,000, to remain available until expended. 

9 DOMESTIC NUCLEAR DETECTION OFFICE

10 RESEARCH, DEVELOPMENT, AND OPERATIONS

11 For an additional amount for ‘‘Research, Develop12 ment, and Operations’’ for non-container, rail, aviation 

13 and intermodal radiation detection activities, $35,000,000, 

14 to remain available until expended: Provided, That 

15 $5,000,000 is to enhance detection links between seaports 

16 and railroads as authorized in section 121(i) of the Security 

17 and Accountability For Every Port Act of 2006 (Public 

18 Law 109–347); $8,000,000 is to accelerate development and 

19 deployment of detection systems at international rail border 

20 crossings; and $22,000,000 is for development and deploy21 ment of a variety of screening technologies at aviation fa22 cilities. 

23 SYSTEMS ACQUISITION

24 For an additional amount for ‘‘Systems Acquisition’’, 

25 $100,000,000, to remain available until expended: Pro26 vided, That none of the funds appropriated under this head-
68

•HR 2206 EAH 

1 ing shall be obligated for full scale procurement of Advanced 

2 Spectroscopic Portal Monitors until the Secretary of Home3 land Security has certified through a report to the Commit4 tees on Appropriations of the Senate and the House of Rep5 resentatives that a significant increase in operational effec6 tiveness will be achieved. 

7 GENERAL PROVISIONS—THIS CHAPTER 

8 SEC. 3501. None of the funds provided in this Act, or 

9 Public Law 109–295, shall be available to carry out section 

10 872 of Public Law 107–296. 

11 SEC. 3502. The Secretary of Homeland Security shall 

12 require that all contracts of the Department of Homeland 

13 Security that provide award fees link such fees to successful 

14 acquisition outcomes (which outcomes shall be specified in 

15 terms of cost, schedule, and performance). 

16 CHAPTER 6

17 LEGISLATIVE BRANCH 

18 HOUSE OF REPRESENTATIVES 

19 SALARIES AND EXPENSES

20 For an additional amount for ‘‘Salaries and Ex21 penses’’, $6,437,000, as follows: 

22 ALLOWANCES AND EXPENSES

23 For an additional amount for allowances and expenses 

24 as authorized by House resolution or law, $6,437,000 for 
69

•HR 2206 EAH 

1 business continuity and disaster recovery, to remain avail2 able until expended. 

3 GOVERNMENT ACCOUNTABILITY OFFICE 

4 SALARIES AND EXPENSES

5 For an additional amount for ‘‘Salaries and Ex6 penses’’ of the Government Accountability Office, $374,000, 

7 to remain available until September 30, 2008. 

8 CHAPTER 7

9 DEPARTMENT OF DEFENSE 

10 DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005

11 For deposit into the Department of Defense Base Clo12 sure Account 2005, established by section 2906A(a)(1) of the 

13 Defense Base Closure and Realignment Act of 1990 (10 

14 U.S.C. 2687 note), $3,136,802,000, to remain available 

15 until expended: Provided, That within 30 days of the enact16 ment of this Act, the Secretary of Defense shall submit a 

17 detailed spending plan to the Committees on Appropria18 tions of the House of Representatives and the Senate. 

19 GENERAL PROVISIONS—THIS CHAPTER 

20 SEC. 3701. Notwithstanding any other provision of 

21 law, none of the funds in this or any other Act may be 

22 used to close Walter Reed Army Medical Center until equiv23 alent medical facilities at the Walter Reed National Mili24 tary Medical Center at Naval Medical Center, Bethesda, 

25 Maryland, and/or the Fort Belvoir, Virginia, Community 
70

•HR 2206 EAH 

1 Hospital have been constructed and equipped: Provided, 

2 That to ensure that the quality of care provided by the Mili3 tary Health System is not diminished during this transi4 tion, the Walter Reed Army Medical Center shall be ade5 quately funded, to include necessary renovation and main6 tenance of existing facilities, to maintain the maximum 

7 level of inpatient and outpatient services. 

8 SEC. 3702. Notwithstanding any other provision of 

9 law, none of the funds in this or any other Act shall be 

10 used to reorganize or relocate the functions of the Armed 

11 Forces Institute of Pathology (AFIP) until the Secretary 

12 of Defense has submitted, not later than December 31, 2007, 

13 a detailed plan and timetable for the proposed reorganiza14 tion and relocation to the Committees on Appropriations 

15 and Armed Services of the Senate and House of Representa16 tives. The plan shall take into consideration the rec17 ommendations of a study being prepared by the Govern18 ment Accountability Office (GAO), provided that such study 

19 is available not later than 45 days before the date specified 

20 in this section, on the impact of dispersing selected func21 tions of AFIP among several locations, and the possibility 

22 of consolidating those functions at one location. The plan 

23 shall include an analysis of the options for the location and 

24 operation of the Program Management Office for second 

25 opinion consults that are consistent with the recommenda-
71

•HR 2206 EAH 

1 tions of the Base Realignment and Closure Commission, to2 gether with the rationale for the option selected by the Sec3 retary. 

4 SEC. 3703. The Secretary of the Navy shall, notwith5 standing any other provision of law, transfer to the Sec6 retary of the Air Force, at no cost, all lands, easements, 

7 Air Installation Compatible Use Zones, and facilities at 

8 NASJRB Willow Grove designated for operation as a Joint 

9 Interagency Installation for use by the Pennsylvania Na10 tional Guard and other Department of Defense components, 

11 government agencies, and associated users to perform na12 tional defense, homeland security, and emergency prepared13 ness missions. 

14 CHAPTER 8

15 DEPARTMENT OF STATE AND RELATED AGENCY 

16 DEPARTMENT OF STATE 

17 ADMINISTRATION OF FOREIGN AFFAIRS

18 DIPLOMATIC AND CONSULAR PROGRAMS

19 (INCLUDING TRANSFER OF FUNDS)

20 For an additional amount for ‘‘Diplomatic and Con21 sular Programs’’, $34,103,000, to remain available until 

22 September 30, 2008, of which $31,845,000 for World Wide 

23 Security Upgrades is available until expended: Provided, 

24 That of the amount available under this heading, $258,000 

25 shall be transferred to, and merged with, funds available 

26 in fiscal year 2007 for expenses for the United States Com-
72

•HR 2206 EAH 

1 mission on International Religious Freedom: Provided fur2 ther, That within 15 days of enactment of this Act, the Of3 fice of Management and Budget shall apportion 

4 $15,000,000 from amounts appropriated or otherwise made 

5 available by chapter 8 of title II of division B of Public 

6 Law 109–148 under the heading ‘‘Emergencies in the Dip7 lomatic and Consular Service’’ to reimburse expenditures 

8 from that account in facilitating the evacuation of persons 

9 from Lebanon between July 16, 2006, and the date of enact10 ment of this Act. 

11 OFFICE OF THE INSPECTOR GENERAL

12 For an additional amount for ‘‘Office of Inspector 

13 General’’, $1,500,000, to remain available until December 

14 31, 2008. 

15 INTERNATIONAL ORGANIZATIONS

16 CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

17 For an additional amount for ‘‘Contributions to Inter18 national Organizations’’, $50,000,000, to remain available 

19 until September 30, 2008. 
73

•HR 2206 EAH 

1 BILATERAL ECONOMIC ASSISTANCE 

2 FUNDS APPROPRIATED TO THE PRESIDENT

3 UNITED STATES AGENCY FOR INTERNATIONAL

4 DEVELOPMENT

5 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

6 For an additional amount for ‘‘International Disaster 

7 and Famine Assistance’’, $60,000,000, to remain available 

8 until expended. 

9 OPERATING EXPENSES OF THE UNITED STATES AGENCY

10 FOR INTERNATIONAL DEVELOPMENT

11 For an additional amount for ‘‘Operating Expenses of 

12 the United States Agency for International Development’’, 

13 $3,000,000, to remain available until September 30, 2008. 

14 OPERATING EXPENSES OF THE UNITED STATES AGENCY

15 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN16 SPECTOR GENERAL

17 For an additional amount for ‘‘Operating Expenses of 

18 the United States Agency for International Development 

19 Office of Inspector General’’, $3,500,000, to remain avail20 able until September 30, 2008. 

21 OTHER BILATERAL ECONOMIC ASSISTANCE

22 ECONOMIC SUPPORT FUND

23 For an additional amount for ‘‘Economic Support 

24 Fund’’, $122,300,000, to remain available until September 

25 30, 2008. 
74

•HR 2206 EAH 

1 DEPARTMENT OF STATE

2 DEMOCRACY FUND

3 For an additional amount for ‘‘Democracy Fund’’, 

4 $5,000,000, to remain available until September 30, 2008. 

5 INTERNATIONAL NARCOTICS CONTROL AND LAW

6 ENFORCEMENT

7 (INCLUDING RESCISSION OF FUNDS)

8 For an additional amount for ‘‘International Nar9 cotics Control and Law Enforcement’’, $42,000,000, to re10 main available until September 30, 2008. 

11 Of the amounts made available for procurement of a 

12 maritime patrol aircraft for the Colombian Navy under this 

13 heading in Public Law 109–234, $13,000,000 are rescinded. 

14 MIGRATION AND REFUGEE ASSISTANCE

15 For an additional amount for ‘‘Migration and Refugee 

16 Assistance’’, $59,000,000, to remain available until Sep17 tember 30, 2008. 

18 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

19 ASSISTANCE FUND

20 For an additional amount for ‘‘United States Emer21 gency Refugee and Migration Assistance Fund’’, 

22 $25,000,000, to remain available until expended. 
75

•HR 2206 EAH 

1 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

2 RELATED PROGRAMS

3 For an additional amount for ‘‘Nonproliferation, 

4 Anti-Terrorism, Demining and Related Programs’’, 

5 $30,000,000, to remain available until September 30, 2008. 

6 MILITARY ASSISTANCE 

7 FUNDS APPROPRIATED TO THE PRESIDENT

8 FOREIGN MILITARY FINANCING PROGRAM

9 For an additional amount for ‘‘Foreign Military Fi10 nancing Program’’, $45,000,000, to remain available until 

11 September 30, 2008. 

12 PEACEKEEPING OPERATIONS

13 For an additional amount for ‘‘Peacekeeping Oper14 ations’’, $40,000,000, to remain available until September 

15 30, 2008: Provided, That funds appropriated under this 

16 heading shall be made available, notwithstanding section 

17 660 of the Foreign Assistance Act of 1961, for assistance 

18 for Liberia for security sector reform. 

19 GENERAL PROVISIONS—THIS CHAPTER 

20 EXTENSION OF OVERSIGHT AUTHORITY

21 SEC. 3801. Section 3001(o)(1)(B) of the Emergency 

22 Supplemental Appropriations Act for Defense and for the 

23 Reconstruction of Iraq and Afghanistan, 2004 (Public Law 

24 108–106; 117 Stat. 1238; 5 U.S.C. App., note to section 

25 8G of Public Law 95–452), as amended by section 1054(b) 

26 of the John Warner National Defense Authorization Act for 
76

•HR 2206 EAH 

1 Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2397) 

2 and section 2 of the Iraq Reconstruction Accountability Act 

3 of 2006 (Public Law 109–440), is amended by inserting ‘‘or 

4 fiscal year 2007’’ after ‘‘fiscal year 2006’’. 

5 LEBANON

6 SEC. 3802. (a) LIMITATION ON ECONOMIC SUPPORT

7 FUND ASSISTANCE FOR LEBANON.—None of the funds made 

8 available in this Act under the heading ‘‘Economic Support 

9 Fund’’ for cash transfer assistance for the Government of 

10 Lebanon may be made available for obligation until the 

11 Secretary of State reports to the Committees on Appropria12 tions on Lebanon’s economic reform plan and on the spe13 cific conditions and verifiable benchmarks that have been 

14 agreed upon by the United States and the Government of 

15 Lebanon pursuant to the Memorandum of Understanding 

16 on cash transfer assistance for Lebanon. 

17 (b) LIMITATION ON FOREIGN MILITARY FINANCING

18 PROGRAM AND INTERNATIONAL NARCOTICS CONTROL AND

19 LAW ENFORCEMENT ASSISTANCE FOR LEBANON.—None of 

20 the funds made available in this Act under the heading 

21 ‘‘Foreign Military Financing Program’’ or ‘‘International 

22 Narcotics Control and Law Enforcement’’ for military or 

23 police assistance to Lebanon may be made available for ob24 ligation until the Secretary of State submits to the Commit25 tees on Appropriations a report on procedures established 

26 to determine eligibility of members and units of the armed 
77

•HR 2206 EAH 

1 forces and police forces of Lebanon to participate in United 

2 States training and assistance programs and on the end 

3 use monitoring of all equipment provided under such pro4 grams to the Lebanese armed forces and police forces. 

5 (c) CERTIFICATION REQUIRED.—Prior to the initial 

6 obligation of funds made available in this Act for assistance 

7 for Lebanon under the headings ‘‘Foreign Military Financ8 ing Program’’ and ‘‘Nonproliferation, Anti-Terrorism, 

9 Demining and Related Programs’’, the Secretary of State 

10 shall certify to the Committees on Appropriations that all 

11 practicable efforts have been made to ensure that such as12 sistance is not provided to or through any individual, or 

13 private or government entity, that advocates, plans, spon14 sors, engages in, or has engaged in, terrorist activity. 

15 (d) REPORT REQUIRED.—Not later than 45 days after 

16 the date of the enactment of this Act, the Secretary of State 

17 shall submit to the Committees on Appropriations a report 

18 on the Government of Lebanon’s actions to implement sec19 tion 14 of United Nations Security Council Resolution 1701 

20 (August 11, 2006). 

21 (e) SPECIAL AUTHORITY.—This section shall be effec22 tive notwithstanding section 534(a) of Public Law 109–102, 

23 which is made applicable to funds appropriated for fiscal 

24 year 2007 by the Continuing Appropriations Resolution, 
78

•HR 2206 EAH 

1 2007 (division B of Public Law 109–289, as amended by 

2 Public Law 110–5). 

3 DEBT RESTRUCTURING

4 SEC. 3803. Amounts appropriated for fiscal year 2007 

5 for ‘‘Bilateral Economic Assistance—Department of the 

6 Treasury—Debt Restructuring’’ may be used to assist Libe7 ria in retiring its debt arrearages to the International Mon8 etary Fund, the International Bank for Reconstruction and 

9 Development, and the African Development Bank. 

10 GOVERNMENT ACCOUNTABILITY OFFICE

11 SEC. 3804. To facilitate effective oversight of programs 

12 and activities in Iraq by the Government Accountability 

13 Office (GAO), the Department of State shall provide GAO 

14 staff members the country clearances, life support, and 

15 logistical and security support necessary for GAO personnel 

16 to establish a presence in Iraq for periods of not less than 

17 45 days. 

18 HUMAN RIGHTS AND DEMOCRACY FUND

19 SEC. 3805. The Assistant Secretary of State for De20 mocracy, Human Rights, and Labor shall be responsible for 

21 all policy, funding, and programming decisions regarding 

22 funds made available under this Act and prior Acts making 

23 appropriations for foreign operations, export financing and 

24 related programs for the Human Rights and Democracy 

25 Fund of the Bureau of Democracy, Human Rights, and 

26 Labor. 
79

•HR 2206 EAH 

1 INSPECTOR GENERAL OVERSIGHT OF IRAQ AND

2 AFGHANISTAN

3 SEC. 3806. (a) IN GENERAL.—Subject to paragraph 

4 (2), the Inspector General of the Department of State and 

5 the Broadcasting Board of Governors (referred to in this 

6 section as the ‘‘Inspector General’’) may use personal serv7 ices contracts to engage citizens of the United States to fa8 cilitate and support the Office of the Inspector General’s 

9 oversight of programs and operations related to Iraq and 

10 Afghanistan. Individuals engaged by contract to perform 

11 such services shall not, by virtue of such contract, be consid12 ered to be employees of the United States Government for 

13 purposes of any law administered by the Office of Personnel 

14 Management. The Secretary of State may determine the ap15 plicability to such individuals of any law administered by 

16 the Secretary concerning the performance of such services 

17 by such individuals. 

18 (b) CONDITIONS.—The authority under paragraph (1) 

19 is subject to the following conditions: 

20 (1) The Inspector General determines that exist21 ing personnel resources are insufficient. 

22 (2) The contract length for a personal services 

23 contractor, including options, may not exceed 1 year, 

24 unless the Inspector General makes a finding that ex-
80

•HR 2206 EAH 

1 ceptional circumstances justify an extension of up to 

2 1 additional year. 

3 (3) Not more than 10 individuals may be em4 ployed at any time as personal services contractors 

5 under the program. 

6 (c) TERMINATION OF AUTHORITY.—The authority to 

7 award personal services contracts under this section shall 

8 terminate on December 31, 2007. A contract entered into 

9 prior to the termination date under this paragraph may 

10 remain in effect until not later than December 31, 2009. 

11 (d) OTHER AUTHORITIES NOT AFFECTED.—The au12 thority under this section is in addition to any other au13 thority of the Inspector General to hire personal services 

14 contractors. 

15 FUNDING TABLES, REPORTS AND DIRECTIVES

16 SEC. 3807. (a) Funds provided in this Act for the fol17 lowing accounts shall be made available for countries, pro18 grams and activities in the amounts contained in the re19 spective tables and should be expended consistent with the 

20 reporting requirements and directives included in the joint 

21 explanatory statement accompanying the conference report 

22 on H.R. 1591 of the 110th Congress (H. Rept. 110–107): 

23 ‘‘Diplomatic and Consular Programs’’. 

24 ‘‘Office of the Inspector General’’. 

25 ‘‘Educational and Cultural Exchange Pro26 grams’’. 
81

•HR 2206 EAH 

1 ‘‘Contributions to International Organizations’’. 

2 ‘‘Contributions for International Peacekeeping 

3 Activities’’. 

4 ‘‘Child Survival and Health Programs Fund’’. 

5 ‘‘International Disaster and Famine Assistance’’. 

6 ‘‘Operating Expenses of the United States Agen7 cy for International Development’’. 

8 ‘‘Operating Expenses of the United States Agen9 cy for International Development Office of Inspector 

10 General’’. 

11 ‘‘Economic Support Fund’’. 

12 ‘‘Assistance for Eastern Europe and the Baltic 

13 States’’. 

14 ‘‘Democracy Fund’’. 

15 ‘‘International Narcotics Control and Law En16 forcement’’. 

17 ‘‘Migration and Refugee Assistance’’. 

18 ‘‘Nonproliferation, Anti-Terrorism, Demining 

19 and Related Programs’’. 

20 ‘‘Foreign Military Financing Program’’. 

21 ‘‘Peacekeeping Operations’’. 

22 (b) Any proposed increases or decreases to the amounts 

23 contained in the tables in the joint explanatory statement 

24 shall be subject to the regular notification procedures of the 
82

•HR 2206 EAH 

1 Committees on Appropriations and section 634A of the For2 eign Assistance Act of 1961. 

3 SPENDING PLAN AND NOTIFICATION PROCEDURES

4 SEC. 3808. Not later than 45 days after enactment of 

5 this Act the Secretary of State shall submit to the Commit6 tees on Appropriations a report detailing planned expendi7 tures for funds appropriated under the headings in this 

8 chapter and under the headings in chapter 6 of title I, ex9 cept for funds appropriated under the heading ‘‘Inter10 national Disaster and Famine Assistance’’: Provided, That 

11 funds appropriated under the headings in this chapter and 

12 in chapter 6 of title I, except for funds appropriated under 

13 the heading named in this section, shall be subject to the 

14 regular notification procedures of the Committees on Appro15 priations. 

16 CONDITIONS ON ASSISTANCE FOR PAKISTAN

17 SEC. 3809. None of the funds made available for assist18 ance for the central Government of Pakistan under the 

19 heading ‘‘Economic Support Fund’’ in this Act may be 

20 made available for non-project assistance until the Sec21 retary of State submits to the Committees on Appropria22 tions a report on the oversight mechanisms, performance 

23 benchmarks, and implementation processes for such funds: 

24 Provided, That notwithstanding any other provision of law, 

25 funds made available for non-project assistance pursuant 

26 to the previous proviso shall be subject to the regular notifi-
83

•HR 2206 EAH 

1 cation procedures of the Committees on Appropriations: 

2 Provided further, That of the funds made available for as3 sistance for Pakistan under the heading ‘‘Economic Sup4 port Fund’’ in this Act, $5,000,000 shall be made available 

5 for the Human Rights and Democracy Fund of the Bureau 

6 of Democracy, Human Rights, and Labor, Department of 

7 State, for political party development and election observa8 tion programs. 

9 CIVILIAN RESERVE CORPS

10 SEC. 3810. Of the funds appropriated by this Act 

11 under the heading ‘‘Diplomatic and Consular Programs’’, 

12 up to $50,000,000 may be made available to support and 

13 maintain a civilian reserve corps: Provided, That none of 

14 the funds for a civilian reserve corps may be obligated with15 out specific authorization in a subsequent Act of Congress: 

16 Provided further, That funds made available for this pur17 pose shall be subject to the regular notification procedures 

18 of the Committees on Appropriations. 

19 EXTENSION OF AVAILABILITY OF FUNDS

20 SEC. 3811. Section 1302(a) of Public Law 109–234 is 

21 amended by striking ‘‘one additional year’’ and inserting 

22 ‘‘two additional years’’. 
84

•HR 2206 EAH 

1 SPECIAL IMMIGRANT STATUS FOR CERTAIN ALIENS SERV2 ING AS TRANSLATORS OR INTERPRETERS WITH FED3 ERAL AGENCIES

4 SEC. 3812. (a) INCREASE IN NUMBERS ADMITTED.—

5 Section 1059 of the National Defense Authorization Act for 

6 Fiscal Year 2006 (8 U.S.C. 1101 note) is amended—

7 (1) in subsection (b)(1)—

8 (A) in subparagraph (B), by striking ‘‘as a 

9 translator’’ and inserting ‘‘, or under Chief of 

10 Mission authority, as a translator or inter11 preter’’; 

12 (B) in subparagraph (C), by inserting ‘‘the 

13 Chief of Mission or’’ after ‘‘recommendation 

14 from’’; and 

15 (C) in subparagraph (D), by inserting ‘‘the 

16 Chief of Mission or’’ after ‘‘as determined by’’; 

17 and 

18 (2) in subsection (c)(1), by striking ‘‘section dur19 ing any fiscal year shall not exceed 50.’’ and insert20 ing the following: ‘‘section—

21 ‘‘(A) during each of the fiscal years 2007 

22 and 2008, shall not exceed 500; and 

23 ‘‘(B) during any other fiscal year shall not 

24 exceed 50.’’. 
85

•HR 2206 EAH 

1 (b) ALIENS EXEMPT FROM EMPLOYMENT-BASED NU2 MERICAL LIMITATIONS.—Section 1059(c)(2) of such Act is 

3 amended—

4 (1) by amending the paragraph designation and 

5 heading to read as follows: 

6 ‘‘(2) ALIENS EXEMPT FROM EMPLOYMENT-BASED

7 NUMERICAL LIMITATIONS.—’’; and 

8 (2) by inserting ‘‘and shall not be counted 

9 against the numerical limitations under sections 

10 201(d), 202(a), and 203(b)(4) of the Immigration and 

11 Nationality Act (8 U.S.C. 1151(d), 1152(a), and 

12 1153(b)(4))’’ before the period at the end. 

13 (c) ADJUSTMENT OF STATUS.—Section 1059 of such 

14 Act is further amended—

15 (1) by redesignating subsection (d) as subsection 

16 (e); and 

17 (2) by inserting after subsection (c) the fol18 lowing: 

19 ‘‘(d) ADJUSTMENT OF STATUS.—Notwithstanding 

20 paragraphs (2), (7) and (8) of section 245(c) of the Immi21 gration and Nationality Act (8 U.S.C. 1255(c)), the Sec22 retary of Homeland Security may adjust the status of an 

23 alien to that of a lawful permanent resident under section 

24 245(a) of such Act if the alien—
86

•HR 2206 EAH 

1 ‘‘(1) was paroled or admitted as a non2 immigrant into the United States; and 

3 ‘‘(2) is otherwise eligible for special immigrant 

4 status under this section and under the Immigration 

5 and Nationality Act.’’. 

6 TITLE IV—ADDITIONAL HURRI7 CANE DISASTER RELIEF AND 

8 RECOVERY 

9 CHAPTER 1

10 DEPARTMENT OF AGRICULTURE 

11 GENERAL PROVISION—THIS CHAPTER 

12 SEC. 4101. Section 1231(k)(2) of the Food Security Act 

13 of 1985 (16 U.S.C. 3831(k)(2)) is amended by striking 

14 ‘‘During calendar year 2006, the’’ and inserting ‘‘The’’. 

15 CHAPTER 2

16 DEPARTMENT OF JUSTICE 

17 OFFICE OF JUSTICE PROGRAMS

18 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

19 For an additional amount for ‘‘State and Local Law 

20 Enforcement Assistance’’, for discretionary grants author21 ized by subpart 2 of part E, of title I of the Omnibus Crime 

22 Control and Safe Streets Act of 1968 as in effect on Sep23 tember 30, 2006, notwithstanding the provisions of section 

24 511 of said Act, $50,000,000, to remain available until ex25 pended: Provided, That the amount made available under 
87

•HR 2206 EAH 

1 this heading shall be for local law enforcement initiatives 

2 in the Gulf Coast region related to the aftermath of Hurri3 cane Katrina: Provided further, That these funds shall be 

4 apportioned among the States in quotient to their level of 

5 violent crime as estimated by the Federal Bureau of Inves6 tigation’s Uniform Crime Report for the year 2005. 

7 DEPARTMENT OF COMMERCE 

8 NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

9 OPERATIONS, RESEARCH, AND FACILITIES

10 For an additional amount for ‘‘Operations, Research, 

11 and Facilities’’, for necessary expenses related to the con12 sequences of Hurricanes Katrina and Rita on the shrimp 

13 and fishing industries, $110,000,000, to remain available 

14 until September 30, 2008. 

15 NATIONAL AERONAUTICS AND SPACE 

16 ADMINISTRATION 

17 EXPLORATION CAPABILITIES

18 For an additional amount for ‘‘Exploration Capabili19 ties’’ for necessary expenses related to the consequences of 

20 Hurricane Katrina, $20,000,000, to remain available until 

21 September 30, 2009. 

22 GENERAL PROVISIONS—THIS CHAPTER 

23 SEC. 4201. Funds provided in this Act for the ‘‘De24 partment of Commerce, National Oceanic and Atmospheric 

25 Administration, Operations, Research, and Facilities’’, 
88

•HR 2206 EAH 

1 shall be made available according to the language relating 

2 to such account in the joint explanatory statement accom3 panying the conference report on H.R. 1591 of the 110th 

4 Congress (H. Rept. 110–107). 

5 SEC. 4202. Up to $48,000,000 of amounts made avail6 able to the National Aeronautics and Space Administration 

7 in Public Law 109–148 and Public Law 109–234 for emer8 gency hurricane and other natural disaster-related expenses 

9 may be used to reimburse hurricane-related costs incurred 

10 by NASA in fiscal year 2005. 

11 CHAPTER 3

12 DEPARTMENT OF DEFENSE—CIVIL 

13 DEPARTMENT OF THE ARMY 

14 CORPS OF ENGINEERS—CIVIL

15 CONSTRUCTION

16 For an additional amount for ‘‘Construction’’ for nec17 essary expenses related to the consequences of Hurricane 

18 Katrina and other hurricanes of the 2005 season, 

19 $25,300,000, to remain available until expended, which 

20 may be used to continue construction of projects related to 

21 interior drainage for the greater New Orleans metropolitan 

22 area. 

23 FLOOD CONTROL AND COASTAL EMERGENCIES

24 For an additional amount for ‘‘Flood Control and 

25 Coastal Emergencies’’, as authorized by section 5 of the Act 

26 of August 18, 1941 (33 U.S.C. 701n), for necessary expenses 
89

•HR 2206 EAH 

1 relating to the consequences of Hurricanes Katrina and 

2 Rita and for other purposes, $1,407,700,000, to remain 

3 available until expended: Provided, That $1,300,000,000 of 

4 the amount provided may be used by the Secretary of the 

5 Army to carry out projects and measures for the West Bank 

6 and Vicinity and Lake Ponchartrain and Vicinity, Lou7 isiana, projects, as described under the heading ‘‘Flood Con8 trol and Coastal Emergencies’’, in chapter 3 of Public Law 

9 109–148: Provided further, That $107,700,000 of the 

10 amount provided may be used to implement the projects for 

11 hurricane storm damage reduction, flood damage reduction, 

12 and ecosystem restoration within Hancock, Harrison, and 

13 Jackson Counties, Mississippi substantially in accordance 

14 with the Report of the Chief of Engineers dated December 

15 31, 2006, and entitled ‘‘Mississippi, Coastal Improvements 

16 Program Interim Report, Hancock, Harrison, and Jackson 

17 Counties, Mississippi’’: Provided further, That projects au18 thorized for implementation under this Chief’s report shall 

19 be carried out at full Federal expense, except that the non20 Federal interests shall be responsible for providing for all 

21 costs associated with operation and maintenance of the 

22 project: Provided further, That any project using funds ap23 propriated under this heading shall be initiated only after 

24 non-Federal interests have entered into binding agreements 

25 with the Secretary requiring the non-Federal interests to 
90

•HR 2206 EAH 

1 pay 100 percent of the operation, maintenance, repair, re2 placement, and rehabilitation costs of the project and to 

3 hold and save the United States free from damages due to 

4 the construction or operation and maintenance of the 

5 project, except for damages due to the fault or negligence 

6 of the United States or its contractors: Provided further, 

7 That the Chief of Engineers, acting through the Assistant 

8 Secretary of the Army for Civil Works, shall provide a 

9 monthly report to the House and Senate Committees on Ap10 propriations detailing the allocation and obligation of these 

11 funds, beginning not later than 60 days after enactment 

12 of this Act. 

13 GENERAL PROVISIONS—THIS CHAPTER 

14 SEC. 4301. The Secretary is authorized and directed 

15 to determine the value of eligible reimbursable expenses in16 curred by local governments in storm-proofing pumping 

17 stations, constructing safe houses for operators, and other 

18 interim flood control measures in and around the New Orle19 ans metropolitan area that the Secretary determines to be 

20 integral to the overall plan to ensure operability of the sta21 tions during hurricanes, storms and high water events and 

22 the flood control plan for the area. 

23 SEC. 4302. (a) The Secretary of the Army is author24 ized and directed to utilize funds remaining available for 

25 obligation from the amounts appropriated in chapter 3 of 
91

•HR 2206 EAH 

1 Public Law 109–234 under the heading ‘‘Flood Control and 

2 Coastal Emergencies’’ for projects in the greater New Orle3 ans metropolitan area to prosecute these projects in a man4 ner which promotes the goal of continuing work at an opti5 mal pace, while maximizing, to the greatest extent prac6 ticable, levels of protection to reduce the risk of storm dam7 age to people and property. 

8 (b) The expenditure of funds as provided in subsection 

9 (a) may be made without regard to individual amounts or 

10 purposes specified in chapter 3 of Public Law 109–234. 

11 (c) Any reallocation of funds that are necessary to ac12 complish the goal established in subsection (a) are author13 ized, subject to the approval of the House and Senate Com14 mittees on Appropriation. 

15 SEC. 4303. The Chief of Engineers shall investigate the 

16 overall technical advantages, disadvantages and operational 

17 effectiveness of operating the new pumping stations at the 

18 mouths of the 17th Street, Orleans Avenue and London Ave19 nue canals in the New Orleans area directed for construc20 tion in Public Law 109–234 concurrently or in series with 

21 existing pumping stations serving these canals and the ad22 vantages, disadvantages and technical operational effective23 ness of removing the existing pumping stations and config24 uring the new pumping stations and associated canals to 

25 handle all needed discharges to the lakefront or in combina-
92

•HR 2206 EAH 

1 tion with discharges directly to the Mississippi River in 

2 Jefferson Parish; and the advantages, disadvantages and 

3 technical operational effectiveness of replacing or improving 

4 the floodwalls and levees adjacent to the three outfall canals: 

5 Provided, That the analysis should be conducted at Federal 

6 expense: Provided further, That the analysis shall be com7 pleted and furnished to the Congress not later than three 

8 months after enactment of this Act. 

9 SEC. 4304. Using funds made available in Chapter 3 

10 under title II of Public Law 109–234, under the heading 

11 ‘‘Investigations’’, the Secretary of the Army, in consultation 

12 with other agencies and the State of Louisiana shall accel13 erate completion as practicable the final report of the Chief 

14 of Engineers recommending a comprehensive plan to de15 authorize deep draft navigation on the Mississippi River 

16 Gulf Outlet: Provided, That the plan shall incorporate and 

17 build upon the Interim Mississippi River Gulf Outlet Deep18 Draft De-Authorization Report submitted to Congress in 

19 December 2006 pursuant to Public Law 109–234. 

20 CHAPTER 4

21 SMALL BUSINESS ADMINISTRATION 

22 DISASTER LOANS PROGRAM ACCOUNT

23 (INCLUDING TRANSFERS OF FUNDS)

24 Of the unobligated balances under the heading ‘‘Small 

25 Business Administration, Disaster Loans Program Ac-
93

•HR 2206 EAH 

1 count’’, $181,069,000, to remain available until expended, 

2 shall be used for administrative expenses to carry out the 

3 disaster loan program, which may be transferred to and 

4 merged with ‘‘Small Business Administration, Salaries and 

5 Expenses’’, of which $500,000 is for the Office of Inspector 

6 General of the Small Business Administration for audits 

7 and reviews of disaster loans and the disaster loan program 

8 and shall be paid to appropriations for the Office of Inspec9 tor General; of which $171,569,000 is for direct administra10 tive expenses of loan making and servicing to carry out the 

11 direct loan program; and of which $9,000,000 is for indirect 

12 administrative expenses. 

13 Of the unobligated balances under the heading ‘‘Small 

14 Business Administration, Disaster Loans Program Ac15 count’’, $25,000,000 shall be made available for loans under 

16 section 7(b)(2) of the Small Business Act to pre-existing 

17 businesses located in an area for which the President de18 clared a major disaster because of the hurricanes in the Gulf 

19 of Mexico in calendar year 2005, of which not to exceed 

20 $8,750,000 is for direct administrative expenses and may 

21 be transferred to and merged with ‘‘Small Business Admin22 istration, Salaries and Expenses’’ to carry out the disaster 

23 loan program of the Small Business Administration. 

24 Of the unobligated balances under the heading ‘‘Small 

25 Business Administration, Disaster Loans Program Ac-
94

•HR 2206 EAH 

1 count’’, $150,000,000 is transferred to the ‘‘Federal Emer2 gency Management Agency, Disaster Relief’’ account. 

3 CHAPTER 5

4 DEPARTMENT OF HOMELAND SECURITY 

5 FEDERAL EMERGENCY MANAGEMENT AGENCY

6 DISASTER RELIEF

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Disaster Relief’’, 

9 $710,000,000, to remain available until expended: Pro10 vided, That $4,000,000 shall be transferred to ‘‘Office of In11 spector General’’: Provided further, That the Government 

12 Accountability Office shall review how the Federal Emer13 gency Management Agency develops its estimates of the 

14 funds needed to respond to any given disaster as described 

15 in House Report 110–60. 

16 GENERAL PROVISIONS—THIS CHAPTER 

17 SEC. 4501. (a) IN GENERAL.—Notwithstanding any 

18 other provision of law, including any agreement, the Fed19 eral share of assistance, including direct Federal assistance, 

20 provided for the States of Louisiana, Mississippi, Florida, 

21 Alabama, and Texas in connection with Hurricanes 

22 Katrina, Wilma, Dennis, and Rita under sections 403, 406, 

23 407, and 408 of the Robert T. Stafford Disaster Relief and 

24 Emergency Assistance Act (42 U.S.C. 5170b, 5172, 5173, 

25 and 5174) shall be 100 percent of the eligible costs under 

26 such sections. 
95

•HR 2206 EAH 

1 (b) APPLICABILITY.—

2 (1) IN GENERAL.—The Federal share provided 

3 by subsection (a) shall apply to disaster assistance 

4 applied for before the date of enactment of this Act. 

5 (2) LIMITATION.—In the case of disaster assist6 ance provided under sections 403, 406, and 407 of the 

7 Robert T. Stafford Disaster Relief and Emergency As8 sistance Act, the Federal share provided by subsection 

9 (a) shall be limited to assistance provided for projects 

10 for which a ‘‘request for public assistance form’’ has 

11 been submitted. 

12 SEC. 4502. (a) COMMUNITY DISASTER LOAN ACT.— 

13 (1) IN GENERAL.—Section 2(a) of the Commu14 nity Disaster Loan Act of 2005 (Public Law 109–88) 

15 is amended by striking ‘‘Provided further, That not16 withstanding section 417(c)(1) of the Stafford Act, 

17 such loans may not be canceled:’’. 

18 (2) EFFECTIVE DATE.—The amendment made by 

19 paragraph (1) shall be effective on the date of enact20 ment of the Community Disaster Loan Act of 2005 

21 (Public Law 109–88). 

22 (b) EMERGENCY SUPPLEMENTAL APPROPRIATIONS

23 ACT.—

24 (1) IN GENERAL.—Chapter 4 of title II of the 

25 Emergency Supplemental Appropriations Act for De-
96

•HR 2206 EAH 

1 fense, the Global War on Terror, and Hurricane Re2 covery, 2006 (Public Law 109–234) is amended under 

3 Federal Emergency Management Agency, ‘‘Disaster 

4 Assistance Direct Loan Program Account’’ by striking 

5 ‘‘Provided further, That notwithstanding section 

6 417(c)(1) of such Act, such loans may not be can7 celed:’’. 

8 (2) EFFECTIVE DATE.—The amendment made by 

9 paragraph (1) shall be effective on the date of enact10 ment of the Emergency Supplemental Appropriations 

11 Act for Defense, the Global War on Terror, and Hur12 ricane Recovery, 2006 (Public Law 109–234). 

13 SEC. 4503. (a) IN GENERAL.—Section 2401 of the 

14 Emergency Supplemental Appropriations Act for Defense, 

15 the Global War on Terror, and Hurricane Recovery, 2006 

16 (Public Law 109–234) is amended by striking ‘‘12 months’’ 

17 and inserting ‘‘24 months’’. 

18 (b) EFFECTIVE DATE.—The amendment made by this 

19 section shall be effective on the date of enactment of the 

20 Emergency Supplemental Appropriations Act for Defense, 

21 the Global War on Terror, and Hurricane Recovery, 2006 

22 (Public Law 109–234). 
97

•HR 2206 EAH 

1 CHAPTER 6

2 DEPARTMENT OF THE INTERIOR 

3 NATIONAL PARK SERVICE

4 HISTORIC PRESERVATION FUND

5 For an additional amount for the ‘‘Historic Preserva6 tion Fund’’ for necessary expenses related to the con7 sequences of Hurricane Katrina and other hurricanes of the 

8 2005 season, $10,000,000, to remain available until Sep9 tember 30, 2008: Provided, That the funds provided under 

10 this heading shall be provided to the State Historic Preser11 vation Officer, after consultation with the National Park 

12 Service, for grants for disaster relief in areas of Louisiana 

13 impacted by Hurricanes Katrina or Rita: Provided further, 

14 That grants shall be for the preservation, stabilization, re15 habilitation, and repair of historic properties listed in or 

16 eligible for the National Register of Historic Places, for 

17 planning and technical assistance: Provided further, That 

18 grants shall only be available for areas that the President 

19 determines to be a major disaster under section 102(2) of 

20 the Robert T. Stafford Disaster Relief and Emergency As21 sistance Act (42 U.S.C. 5122(2)) due to Hurricanes 

22 Katrina or Rita: Provided further, That individual grants 

23 shall not be subject to a non-Federal matching requirement: 

24 Provided further, That no more than 5 percent of funds pro-
98

•HR 2206 EAH 

1 vided under this heading for disaster relief grants may be 

2 used for administrative expenses. 

3 GENERAL PROVISION—THIS CHAPTER 

4 (INCLUDING TRANSFER OF FUNDS)

5 SEC. 4601. Of the disaster relief funds from Public 

6 Law 109–234, 120 Stat. 418, 461, (June 30, 2006), chapter 

7 5, ‘‘National Park Service—Historic Preservation Fund’’, 

8 for necessary expenses related to the consequences of Hurri9 cane Katrina and other hurricanes of the 2005 season that 

10 were allocated to the State of Mississippi by the National 

11 Park Service, $500,000 is hereby transferred to the ‘‘Na12 tional Park Service—National Recreation and Preserva13 tion’’ appropriation: Provided, That these funds may be 

14 used to reconstruct destroyed properties that at the time of 

15 destruction were listed in the National Register of Historic 

16 Places and are otherwise qualified to receive these funds: 

17 Provided further, That the State Historic Preservation Offi18 cer certifies that, for the community where that destroyed 

19 property was located, the property is iconic to or essential 

20 to illustrating that community’s historic identity, that no 

21 other property in that community with the same associative 

22 historic value has survived, and that sufficient historical 

23 documentation exists to ensure an accurate reproduction. 
99

•HR 2206 EAH 

1 CHAPTER 7

2 DEPARTMENT OF EDUCATION 

3 HIGHER EDUCATION

4 For an additional amount under part B of title VII 

5 of the Higher Education Act of 1965 (‘‘HEA’’) for institu6 tions of higher education (as defined in section 101 or sec7 tion 102(c) of that Act) that are located in an area in which 

8 a major disaster was declared in accordance with section 

9 401 of the Robert T. Stafford Disaster Relief and Emer10 gency Assistance Act related to Hurricanes Katrina or 

11 Rita, $30,000,000: Provided, That such funds shall be avail12 able to the Secretary of Education only for payments to 

13 help defray the expenses (which may include lost revenue, 

14 reimbursement for expenses already incurred, and construc15 tion) incurred by such institutions of higher education that 

16 were forced to close, relocate or significantly curtail their 

17 activities as a result of damage directly caused by such hur18 ricanes and for payments to enable such institutions to pro19 vide grants to students who attend such institutions for aca20 demic years beginning on or after July 1, 2006: Provided 

21 further, That such payments shall be made in accordance 

22 with criteria established by the Secretary and made pub23 licly available without regard to section 437 of the General 

24 Education Provisions Act, section 553 of title 5, United 

25 States Code, or part B of title VII of the HEA: Provided 
100

•HR 2206 EAH 

1 further, That the Secretary shall award funds available 

2 under this paragraph not later than 60 days after the date 

3 of the enactment of this Act. 

4 HURRICANE EDUCATION RECOVERY

5 For carrying out activities authorized by subpart 1 of 

6 part D of title V of the Elementary and Secondary Edu7 cation Act of 1965, $30,000,000, to remain available until 

8 expended, for use by the States of Louisiana, Mississippi, 

9 and Alabama primarily for recruiting, retaining, and com10 pensating new and current teachers, school principals, as11 sistant principals, principal resident directors, assistant 

12 directors, and other educators, who commit to work for at 

13 least three years in school-based positions in public elemen14 tary and secondary schools located in an area with respect 

15 to which a major disaster was declared under section 401 

16 of the Robert T. Stafford Disaster Relief and Emergency 

17 Assistance Act (42 U.S.C. 5170) by reason of Hurricane 

18 Katrina or Hurricane Rita, including through such mecha19 nisms as paying salary premiums, performance bonuses, 

20 housing subsidies, signing bonuses, and relocation costs and 

21 providing loan forgiveness, with priority given to teachers 

22 and school-based school principals, assistant principals, 

23 principal resident directors, assistant directors, and other 

24 educators who previously worked or lived in one of the af25 fected areas, are currently employed (or become employed) 
101

•HR 2206 EAH 

1 in such a school in any of the affected areas after those dis2 asters, and commit to continue that employment for at least 

3 3 years, Provided, That funds available under this heading 

4 to such States may also be used for 1 or more of the fol5 lowing activities: (1) to build the capacity, knowledge, and 

6 skill of teachers and school-based school principals, assistant 

7 principals, principal resident directors, assistant directors, 

8 and other educators in such public elementary and sec9 ondary schools to provide an effective education, including 

10 the design, adaptation, and implementation of high-quality 

11 formative assessments; (2) the establishment of partnerships 

12 with nonprofit entities with a demonstrated track record 

13 in recruiting and retaining outstanding teachers and other 

14 school-based school principals, assistant principals, prin15 cipal resident directors, and assistant directors; and (3) 

16 paid release time for teachers and principals to identify 

17 and replicate successful practices from the fastest-improving 

18 and highest-performing schools: Provided further, That the 

19 Secretary of Education shall allocate amounts available 

20 under this heading among such States that submit applica21 tions; that such allocation shall be based on the number of 

22 public elementary and secondary schools in each State that 

23 were closed for 19 days or more during the period beginning 

24 on August 29, 2005, and ending on December 31, 2005, due 

25 to Hurricane Katrina or Hurricane Rita; and that such 
102

•HR 2206 EAH 

1 States shall in turn allocate funds to local educational agen2 cies, with priority given first to such agencies with the high3 est percentages of public elementary and secondary schools 

4 that are closed as a result of such hurricanes as of the date 

5 of enactment of this Act and then to such agencies with the 

6 highest percentages of public elementary and secondary 

7 schools with a student-teacher ratio of at least 25 to 1, and 

8 with any remaining amounts to be distributed to such agen9 cies with demonstrated need, as determined by the State Su10 perintendent of Education: Provided further, That, in the 

11 case of any State that chooses to use amounts available 

12 under this heading for performance bonuses, not later than 

13 60 days after the date of enactment of this Act, and in col14 laboration with local educational agencies, teachers’ unions, 

15 local principals’ organizations, local parents’ organiza16 tions, local business organizations, and local charter schools 

17 organizations, the State educational agency shall develop 

18 a plan for a rating system for performance bonuses, and 

19 if no agreement has been reached that is satisfactory to all 

20 consulting entities by such deadline, the State educational 

21 agency shall immediately send a letter notifying Congress 

22 and shall, not later than 30 days after such notification, 

23 establish and implement a rating system that shall be based 

24 on classroom observation and feedback more than once an25 nually, conducted by multiple sources (including, but not 
103

•HR 2206 EAH 

1 limited to, principals and master teachers), and evaluated 

2 against research-based rubrics that use planning, instruc3 tional, and learning environment standards to measure 

4 teacher performance, except that the requirements of this 

5 proviso shall not apply to a State that has enacted a State 

6 law in 2006 authorizing performance pay for teachers. 

7 PROGRAMS TO RESTART SCHOOL OPERATIONS

8 Funds made available under section 102 of the Hurri9 cane Education Recovery Act (title IV of division B of Pub10 lic Law 109–148) may be used by the States of Louisiana, 

11 Mississippi, Alabama, and Texas, in addition to the uses 

12 of funds described in section 102(e), for the following costs: 

13 (1) recruiting, retaining, and compensating new and cur14 rent teachers, school principals, assistant principals, prin15 cipal resident directors, assistant directors, and other edu16 cators for school-based positions in public elementary and 

17 secondary schools impacted by Hurricane Katrina or Hur18 ricane Rita, including through such mechanisms as paying 

19 salary premiums, performance bonuses, housing subsidies, 

20 signing bonuses, and relocation costs and providing loan 

21 forgiveness; (2) activities to build the capacity, knowledge, 

22 and skills of teachers and school-based school principals, as23 sistant principals, principal resident directors, assistant 

24 directors, and other educators in such public elementary 

25 and secondary schools to provide an effective education, in-
104

•HR 2206 EAH 

1 cluding the design, adaptation, and implementation of 

2 high-quality formative assessments; (3) the establishment of 

3 partnerships with nonprofit entities with a demonstrated 

4 track record in recruiting and retaining outstanding teach5 ers and school-based school principals, assistant principals, 

6 principal resident directors, and assistant directors; and 

7 (4) paid release time for teachers and principals to identify 

8 and replicate successful practices from the fastest-improving 

9 and highest-performing schools. 

10 GENERAL PROVISIONS—THIS CHAPTER 

11 SEC. 4701. Section 105(b) of title IV of division B of 

12 Public Law 109–148 is amended by adding at the end the 

13 following new sentence: ‘‘With respect to the program au14 thorized by section 102 of this Act, the waiver authority 

15 in subsection (a) of this section shall be available until the 

16 end of fiscal year 2008.’’. 

17 SEC. 4702. Notwithstanding section 2002(c) of the So18 cial Security Act (42 U.S.C. 1397a(c)), funds made avail19 able under the heading ‘‘Social Services Block Grant’’ in 

20 division B of Public Law 109–148 shall be available for 

21 expenditure by the States through the end of fiscal year 

22 2009. 

23 SEC. 4703. (a) In the event that Louisiana, Mis24 sissippi, Alabama, or Texas fails to meet its match require25 ment with funds appropriated in fiscal year 2006 or 2007, 
105

•HR 2206 EAH 

1 for fiscal years 2008 and 2009, the Secretary of Health and 

2 Human Services may waive the application of section 

3 2617(d)(4) of the Public Health Service Act for Louisiana, 

4 Mississippi, Alabama, and Texas. 

5 (b) The Secretary may not exercise the waiver author6 ity available under subsection (a) to allow a grantee to pro7 vide less than a 25 percent matching grant. 

8 (c) For grant years beginning in 2008, Louisiana, 

9 Mississippi, Alabama, and Texas and any eligible metro10 politan area in Louisiana, Mississippi, Alabama, and 

11 Texas shall comply with each of the applicable requirements 

12 under title XXVI of the Public Health Service Act (42 

13 U.S.C. 300ff–11 et seq.). 

14 CHAPTER 8

15 DEPARTMENT OF TRANSPORTATION 

16 FEDERAL HIGHWAY ADMINISTRATION

17 FEDERAL-AID HIGHWAYS

18 EMERGENCY RELIEF PROGRAM

19 (INCLUDING RESCISSION OF FUNDS)

20 For an additional amount for the Emergency Relief 

21 Program as authorized under section 125 of title 23, United 

22 States Code, $871,022,000, to remain available until ex23 pended: Provided, That section 125(d)(1) of title 23, United 

24 States Code, shall not apply to emergency relief projects 

25 that respond to damage caused by the 2005–2006 winter 

26 storms in the State of California: Provided further, That 
106

•HR 2206 EAH 

1 of the unobligated balances of funds apportioned to each 

2 State under chapter 1 of title 23, United States Code, 

3 $871,022,000 are rescinded: Provided further, That such re4 scission shall not apply to the funds distributed in accord5 ance with sections 130(f) and 104(b)(5) of title 23, United 

6 States Code; sections 133(d)(1) and 163 of such title, as in 

7 effect on the day before the date of enactment of Public Law 

8 109–59; and the first sentence of section 133(d)(3)(A) of 

9 such title. 

10 FEDERAL TRANSIT ADMINISTRATION

11 FORMULA GRANTS

12 For an additional amount to be allocated by the Sec13 retary to recipients of assistance under chapter 53 of title 

14 49, United States Code, directly affected by Hurricanes 

15 Katrina and Rita, $35,000,000, for the operating and cap16 ital costs of transit services, to remain available until ex17 pended: Provided, That the Federal share for any project 

18 funded from this amount shall be 100 percent. 

19 DEPARTMENT OF HOUSING AND URBAN 

20 DEVELOPMENT 

21 OFFICE OF INSPECTOR GENERAL

22 For an additional amount for the Office of Inspector 

23 General, for the necessary costs related to the consequences 

24 of Hurricanes Katrina and Rita, $7,000,000, to remain 

25 available until expended. 
107

•HR 2206 EAH 

1 GENERAL PROVISIONS—THIS CHAPTER 

2 SEC. 4801. The third proviso under the heading ‘‘De3 partment of Housing and Urban Development—Public and 

4 Indian Housing—Tenant-Based Rental Assistance’’ in 

5 chapter 9 of title I of division B of Public Law 109–148 

6 (119 Stat. 2779) is amended by striking ‘‘for up to 18 

7 months’’ and inserting ‘‘until December 31, 2007’’. 

8 SEC. 4802. Section 21033 of the Continuing Appro9 priations Resolution, 2007 (division B of Public Law 109–

10 289, as amended by Public Law 110–5) is amended by add11 ing after the third proviso: ‘‘: Provided further, That not12 withstanding the previous proviso, except for applying the 

13 2007 Annual Adjustment Factor and making any other 

14 specified adjustments, public housing agencies specified in 

15 category 1 below shall receive funding for calendar year 

16 2007 based on the higher of the amounts the agencies would 

17 receive under the previous proviso or the amounts the agen18 cies received in calendar year 2006, and public housing 

19 agencies specified in categories 2 and 3 below shall receive 

20 funding for calendar year 2007 equal to the amounts the 

21 agencies received in calendar year 2006, except that public 

22 housing agencies specified in categories 1 and 2 below shall 

23 receive funding under this proviso only if, and to the extent 

24 that, any such public housing agency submits a plan, ap25 proved by the Secretary, that demonstrates that the agency 
108

•HR 2206 EAH 

1 can effectively use within 12 months the funding that the 

2 agency would receive under this proviso that is in addition 

3 to the funding that the agency would receive under the pre4 vious proviso: (1) public housing agencies that are eligible 

5 for assistance under section 901 in Public Law 109–148 

6 (119 Stat. 2781) or are located in the same counties as those 

7 eligible under section 901 and operate voucher programs 

8 under section 8(o) of the United States Housing Act of 1937 

9 but do not operate public housing under section 9 of such 

10 Act, and any public housing agency that otherwise qualifies 

11 under this category must demonstrate that they have experi12 enced a loss of rental housing stock as a result of the 2005 

13 hurricanes; (2) public housing agencies that would receive 

14 less funding under the previous proviso than they would 

15 receive under this proviso and that have been placed in re16 ceivership or the Secretary has declared to be in breach of 

17 an Annual Contributions Contract by June 1, 2007; and 

18 (3) public housing agencies that spent more in calendar 

19 year 2006 than the total of the amounts of any such public 

20 housing agency’s allocation amount for calendar year 2006 

21 and the amount of any such public housing agency’s avail22 able housing assistance payments undesignated funds bal23 ance from calendar year 2005 and the amount of any such 

24 public housing agency’s available administrative fees un25 designated funds balance through calendar year 2006’’. 
109

•HR 2206 EAH 

1 SEC. 4803. Section 901 of Public Law 109–148 is 

2 amended by deleting ‘‘calendar year 2006’’ and inserting 

3 ‘‘calendar years 2006 and 2007’’. 

4 CHAPTER 9

5 DEPARTMENT OF VETERANS AFFAIRS 

6 DEPARTMENTAL ADMINISTRATION

7 CONSTRUCTION, MINOR PROJECTS

8 (INCLUDING RESCISSION OF FUNDS)

9 For an additional amount for Department of Veterans 

10 Affairs, ‘‘Construction, Minor Projects’’, $14,484,754, to re11 main available until September 30, 2008, for necessary ex12 penses related to the consequences of Hurricane Katrina 

13 and other hurricanes of the 2005 season. 

14 Of the funds available until September 30, 2007, for 

15 the ‘‘Construction, Minor Projects’’ account of the Depart16 ment of Veterans Affairs, pursuant to section 2702 of Public 

17 Law 109–234, $14,484,754 are hereby rescinded. 

18 TITLE V—OTHER EMERGENCY 

19 APPROPRIATIONS 

20 CHAPTER 1 

21 DEPARTMENT OF AGRICULTURE 

22 GENERAL PROVISION—THIS CHAPTER 

23 SEC. 5101. In addition to any other available funds, 

24 there is hereby appropriated $40,000,000 to the Secretary 

25 of Agriculture, to remain available until expended, for pro26 grams and activities of the Department of Agriculture, as 
110

•HR 2206 EAH 

1 determined by the Secretary, to provide recovery assistance 

2 in response to damage in conjunction with the Presidential 

3 declaration of a major disaster (FEMA–1699–DR) dated 

4 May 6, 2007, for needs not met by the Federal Emergency 

5 Management Agency or private insurers: Provided, That, 

6 in addition, the Secretary may use funds provided under 

7 this section, consistent with the provisions of this section, 

8 to respond to any other Presidential declaration of a major 

9 disaster issued under the authority of the Robert T. Stafford 

10 Disaster Relief and Emergency Assistance Act, 42 U.S.C. 

11 5121–5206 (the Stafford Act), declared during fiscal year 

12 2007 for events occurring before the date of the enactment 

13 of this Act or a Secretary of Agriculture declaration of a 

14 natural disaster, declared during fiscal year 2007 for events 

15 occurring before the date of the enactment of this Act. 

16 CHAPTER 2

17 DEPARTMENT OF COMMERCE 

18 NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

19 OPERATIONS, RESEARCH, AND FACILITIES

20 For an additional amount for ‘‘Operations, Research, 

21 and Facilities’’, $60,400,000, to remain available until Sep22 tember 30, 2008: Provided, That the National Marine Fish23 eries Service shall cause such amounts to be distributed 

24 among eligible recipients of assistance for the commercial 

25 fishery failure designated under section 312(a) of the Mag-
111

•HR 2206 EAH 

1 nuson-Stevens Fishery Conservation and Management Act 

2 (16 U.S.C. 1861a(a)) and declared by the Secretary of Com3 merce on August 10, 2006. 

4 CHAPTER 3

5 DEPARTMENT OF DEFENSE—CIVIL 

6 DEPARTMENT OF THE ARMY 

7 CORPS OF ENGINEERS—CIVIL

8 INVESTIGATIONS

9 For an additional amount for ‘‘Investigations’’ for 

10 flood damage reduction studies to address flooding associ11 ated with disasters covered by Presidential Disaster Dec12 laration FEMA–1692–DR, $8,165,000, to remain available 

13 until expended. 

14 CONSTRUCTION

15 For an additional amount for ‘‘Construction’’ for flood 

16 damage reduction activities associated with disasters cov17 ered by Presidential Disaster Declarations FEMA–1692–

18 DR and FEMA–1694–DR, $11,200,000, to remain avail19 able until expended. 

20 OPERATION AND MAINTENANCE

21 For an additional amount for ‘‘Operation and Mainte22 nance’’ to dredge navigation channels related to the con23 sequences of hurricanes of the 2005 season, $3,000,000, to 

24 remain available until expended. 
112

•HR 2206 EAH 

1 FLOOD CONTROL AND COASTAL EMERGENCIES

2 For an additional amount for ‘‘Flood Control and 

3 Coastal Emergencies’’, as authorized by section 5 of the Act 

4 of August 18, 1941 (33 U.S.C. 701n), to support emergency 

5 operations, repairs and other activities in response to flood, 

6 drought and earthquake emergencies as authorized by law, 

7 $153,300,000, to remain available until expended: Pro8 vided, That the Chief of Engineers, acting through the As9 sistant Secretary of the Army for Civil Works, shall provide 

10 a monthly report to the House and Senate Committees on 

11 Appropriations detailing the allocation and obligation of 

12 these funds, beginning not later than 60 days after enact13 ment of this Act: Provided further, That of the funds pro14 vided under this heading, $7,000,000 shall be available for 

15 drought emergency assistance. 

16 DEPARTMENT OF THE INTERIOR 

17 BUREAU OF RECLAMATION

18 WATER AND RELATED RESOURCES

19 For an additional amount for ‘‘Water and Related Re20 sources’’, $18,000,000, to remain available until expended 

21 for drought assistance: Provided, That drought assistance 

22 may be provided under the Reclamation States Drought 

23 Emergency Act or other applicable Reclamation authorities 

24 to assist drought plagued areas of the West. 
113

•HR 2206 EAH 

1 CHAPTER 4

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF LAND MANAGEMENT

4 WILDLAND FIRE MANAGEMENT

5 (INCLUDING TRANSFER OF FUNDS)

6 For an additional amount for ‘‘Wildland Fire Man7 agement’’, $95,000,000, to remain available until expended, 

8 for urgent wildland fire suppression activities: Provided, 

9 That such funds shall only become available if funds pre10 viously provided for wildland fire suppression will be ex11 hausted imminently and the Secretary of the Interior noti12 fies the House and Senate Committees on Appropriations 

13 in writing of the need for these additional funds: Provided 

14 further, That such funds are also available for repayment 

15 to other appropriations accounts from which funds were 

16 transferred for wildfire suppression. 

17 UNITED STATES FISH AND WILDLIFE SERVICE

18 RESOURCE MANAGEMENT

19 For an additional amount for ‘‘Resource Manage20 ment’’ for the detection of highly pathogenic avian influenza 

21 in wild birds, including the investigation of morbidity and 

22 mortality events, targeted surveillance in live wild birds, 

23 and targeted surveillance in hunter-taken birds, $7,398,000, 

24 to remain available until September 30, 2008. 
114

•HR 2206 EAH 

1 NATIONAL PARK SERVICE

2 OPERATION OF THE NATIONAL PARK SYSTEM

3 For an additional amount for ‘‘Operation of the Na4 tional Park System’’ for the detection of highly pathogenic 

5 avian influenza in wild birds, including the investigation 

6 of morbidity and mortality events, $525,000, to remain 

7 available until September 30, 2008. 

8 UNITED STATES GEOLOGICAL SURVEY

9 SURVEYS, INVESTIGATIONS, AND RESEARCH

10 For an additional amount for ‘‘Surveys, Investiga11 tions, and Research’’ for the detection of highly pathogenic 

12 avian influenza in wild birds, including the investigation 

13 of morbidity and mortality events, targeted surveillance in 

14 live wild birds, and targeted surveillance in hunter-taken 

15 birds, $5,270,000, to remain available until September 30, 

16 2008. 

17 DEPARTMENT OF AGRICULTURE 

18 FOREST SERVICE

19 NATIONAL FOREST SYSTEM

20 For an additional amount for ‘‘National Forest Sys21 tem’’ for the implementation of a nationwide initiative to 

22 increase protection of national forest lands from drug-traf23 ficking organizations, including funding for additional law 

24 enforcement personnel, training, equipment and cooperative 
115

•HR 2206 EAH 

1 agreements, $12,000,000, to remain available until ex2 pended. 

3 WILDLAND FIRE MANAGEMENT

4 (INCLUDING TRANSFER OF FUNDS)

5 For an additional amount for ‘‘Wildland Fire Man6 agement’’, $370,000,000, to remain available until ex7 pended, for urgent wildland fire suppression activities: Pro8 vided, That such funds shall only become available if funds 

9 provided previously for wildland fire suppression will be 

10 exhausted imminently and the Secretary of Agriculture no11 tifies the House and Senate Committees on Appropriations 

12 in writing of the need for these additional funds: Provided 

13 further, That such funds are also available for repayment 

14 to other appropriation accounts from which funds were 

15 transferred for wildfire suppression. 

16 GENERAL PROVISION—THIS CHAPTER 

17 SEC. 5401. (a) For fiscal year 2007, payments shall 

18 be made from any revenues, fees, penalties, or miscellaneous 

19 receipts described in sections 102(b)(3) and 103(b)(2) of the 

20 Secure Rural Schools and Community Self-Determination 

21 Act of 2000 (Public Law 106–393; 16 U.S.C. 500 note), 

22 not to exceed $100,000,000, and the payments shall be 

23 made, to the maximum extent practicable, in the same 

24 amounts, for the same purposes, and in the same manner 
116

•HR 2206 EAH 

1 as were made to States and counties in 2006 under that 

2 Act. 

3 (b) There is appropriated $425,000,000, to remain 

4 available until December 31, 2007, to be used to cover any 

5 shortfall for payments made under this section from funds 

6 not otherwise appropriated. 

7 (c) Titles II and III of Public Law 106–393 are 

8 amended, effective September 30, 2006, by striking ‘‘2006’’ 

9 and ‘‘2007’’ each place they appear and inserting ‘‘2007’’ 

10 and ‘‘2008’’, respectively. 

11 CHAPTER 5

12 DEPARTMENT OF HEALTH AND HUMAN 

13 SERVICES 

14 CENTERS FOR DISEASE CONTROL AND PREVENTION

15 DISEASE CONTROL, RESEARCH AND TRAINING

16 For an additional amount for ‘‘Department of Health 

17 and Human Services, Centers for Disease Control and Pre18 vention, Disease Control, Research and Training’’, to carry 

19 out section 501 of the Federal Mine Safety and Health Act 

20 of 1977 and section 6 of the Mine Improvement and New 

21 Emergency Response Act of 2006, $13,000,000 for research 

22 to develop mine safety technology, including necessary re23 pairs and improvements to leased laboratories: Provided, 

24 That progress reports on technology development shall be 

25 submitted to the House and Senate Committees on Appro-
117

•HR 2206 EAH 

1 priations and the Committee on Health, Education, Labor 

2 and Pensions of the Senate and the Committee on Edu3 cation and Labor of the House of Representatives on a quar4 terly basis: Provided further, That the amount provided 

5 under this heading shall remain available until September 

6 30, 2008. 

7 For an additional amount for ‘‘Department of Health 

8 and Human Services, Centers for Disease Control and Pre9 vention, Disease Control, Research and Training’’, to carry 

10 out activities under section 5011(b) of the Emergency Sup11 plemental Appropriations Act to Address Hurricanes in the 

12 Gulf of Mexico and Pandemic Influenza, 2006 (Public Law 

13 109–148), $50,000,000, to remain available until expended. 

14 GENERAL PROVISIONS—THIS CHAPTER 

15 (INCLUDING RESCISSIONS)

16 SEC. 5501. (a). From unexpended balances available 

17 for the Training and Employment Services account under 

18 the Department of Labor, the following amounts are hereby 

19 rescinded—

20 (1) $3,589,000 transferred pursuant to the 2001 

21 Emergency Supplemental Appropriations Act for Re22 covery from and Response to Terrorist Attacks on the 

23 United States (Public Law 107–38); 
118

•HR 2206 EAH 

1 (2) $834,000 transferred pursuant to the Emer2 gency Supplemental Appropriations Act of 1994 

3 (Public Law 103–211); and 

4 (3) $71,000 for the Consortium for Worker Edu5 cation pursuant to the Emergency Supplemental Act, 

6 2002 (Public Law 107–117). 

7 (b) From unexpended balances available for the State 

8 Unemployment Insurance and Employment Service Oper9 ations account under the Department of Labor pursuant 

10 to the Emergency Supplemental Act, 2002 (Public Law 

11 107–117), $4,100,000 are hereby rescinded. 

12 SEC. 5502. (a) For an additional amount under ‘‘De13 partment of Education, Safe Schools and Citizenship Edu14 cation’’, $8,594,000 shall be available for Safe and Drug15 Free Schools National Programs for competitive grants to 

16 local educational agencies to address youth violence and re17 lated issues. 

18 (b) The competition under subsection (a) shall be lim19 ited to local educational agencies that operate schools cur20 rently identified as persistently dangerous under section 

21 9532 of the Elementary and Secondary Education Act of 

22 1965. 

23 SEC. 5503. Unobligated balances from funds appro24 priated in the Department of Defense and Emergency Sup25 plemental Appropriations for Recovery from and Response 
119

•HR 2206 EAH 

1 to Terrorist Attacks on the United States Act, 2002 (Public 

2 Law 107–117) to the Department of Health and Human 

3 Services under the heading ‘‘Public Health and Social Serv4 ices Emergency Fund’’ that are available for bioterrorism 

5 preparedness and disaster response activities in the Office 

6 of the Secretary shall also be available for the construction, 

7 renovation and improvement of facilities on federally8 owned land as necessary for continuity of operations activi9 ties. 

10 CHAPTER 6

11 LEGISLATIVE BRANCH 

12 CAPITOL POLICE 

13 GENERAL EXPENSES

14 For an additional amount for ‘‘Capitol Police, General 

15 Expenses’’, $10,000,000 for a radio modernization pro16 gram, to remain available until expended: Provided, That 

17 the Chief of the Capitol Police may not obligate any of the 

18 funds appropriated under this heading without approval 

19 of an obligation plan by the Committees on Appropriations 

20 of the Senate and the House of Representatives. 

21 ARCHITECT OF THE CAPITOL 

22 CAPITOL POWER PLANT

23 For an additional amount for ‘‘Capitol Power Plant’’, 

24 $50,000,000, for utility tunnel repairs and asbestos abate25 ment, to remain available until September 30, 2011: Pro-
120

•HR 2206 EAH 

1 vided, That the Architect of the Capitol may not obligate 

2 any of the funds appropriated under this heading without 

3 approval of an obligation plan by the Committees on Ap4 propriations of the Senate and House of Representatives. 

5 CHAPTER 7

6 DEPARTMENT OF VETERANS AFFAIRS 

7 VETERANS HEALTH ADMINISTRATION

8 MEDICAL SERVICES

9 For an additional amount for ‘‘Medical Services’’, 

10 $466,778,000, to remain available until expended, of which 

11 $30,000,000 shall be for the establishment of at least one 

12 new Level I comprehensive polytrauma center; $9,440,000 

13 shall be for the establishment of polytrauma residential 

14 transitional rehabilitation programs; $10,000,000 shall be 

15 for additional transition caseworkers; $20,000,000 shall be 

16 for substance abuse treatment programs; $20,000,000 shall 

17 be for readjustment counseling; $10,000,000 shall be for 

18 blind rehabilitation services; $100,000,000 shall be for en19 hancements to mental health services; $8,000,000 shall be 

20 for polytrauma support clinic teams; $5,356,000 shall be 

21 for additional polytrauma points of contact; $228,982,000 

22 shall be for treatment of Operation Enduring Freedom and 

23 Operation Iraqi Freedom veterans; and $25,000,000 shall 

24 be for prosthetics. 
121

•HR 2206 EAH 

1 MEDICAL ADMINISTRATION

2 For an additional amount for ‘‘Medical Administra3 tion’’, $250,000,000, to remain available until expended. 

4 MEDICAL FACILITIES

5 For an additional amount for ‘‘Medical Facilities’’, 

6 $595,000,000, to remain available until expended, of which 

7 $45,000,000 shall be used for facility and equipment up8 grades at the Department of Veterans Affairs polytrauma 

9 network sites; and $550,000,000 shall be for non-recurring 

10 maintenance as identified in the Department of Veterans 

11 Affairs Facility Condition Assessment report: Provided, 

12 That the amount provided under this heading for non-re13 curring maintenance shall be allocated in a manner not 

14 subject to the Veterans Equitable Resource Allocation: Pro15 vided further, That within 30 days of enactment of this Act 

16 the Secretary shall submit to the Committees on Appropria17 tions of both Houses of Congress an expenditure plan, by 

18 project, for non-recurring maintenance prior to obligation: 

19 Provided further, That semi-annually, on October 1 and 

20 April 1, the Secretary shall submit to the Committees on 

21 Appropriations of both Houses of Congress a report on the 

22 status of funding for non-recurring maintenance, including 

23 obligations and unobligated balances for each project identi24 fied in the expenditure plan. 
122

•HR 2206 EAH 

1 MEDICAL AND PROSTHETIC RESEARCH

2 For an additional amount for ‘‘Medical and Prosthetic 

3 Research’’, $32,500,000, to remain available until ex4 pended, which shall be used for research related to the 

5 unique medical needs of returning Operation Enduring 

6 Freedom and Operation Iraqi Freedom veterans. 

7 DEPARTMENTAL ADMINISTRATION

8 GENERAL OPERATING EXPENSES

9 (INCLUDING TRANSFER OF FUNDS)

10 For an additional amount for ‘‘General Operating Ex11 penses’’, $83,200,000, to remain available until expended, 

12 of which $1,250,000 shall be for digitization of military 

13 records; $60,750,000 shall be for expenses related to hiring 

14 and training new claims processing personnel; up to 

15 $1,200,000 shall be for an independent study of the organi16 zational structure, management and coordination processes, 

17 including seamless transition, utilized by the Department 

18 of Veterans Affairs to provide health care and benefits to 

19 active duty personnel and veterans, including those return20 ing Operation Enduring Freedom and Operation Iraqi 

21 Freedom veterans; and $20,000,000 shall be for disability 

22 examinations: Provided, That not to exceed $1,250,000 of 

23 the amount appropriated under this heading may be trans24 ferred to the Department of Defense for the digitization of 

25 military records used to verify stressors for benefits claims. 
123

•HR 2206 EAH 

1 INFORMATION TECHNOLOGY SYSTEMS

2 For an additional amount for ‘‘Information Tech3 nology Systems’’, $35,100,000, to remain available until ex4 pended, of which $20,000,000 shall be for information tech5 nology support and improvements for processing of Oper6 ation Enduring Freedom and Operation Iraqi Freedom vet7 erans benefits claims, including making electronic Depart8 ment of Defense medical records available for claims proc9 essing and enabling electronic benefits applications by vet10 erans; and $15,100,000 shall be for electronic data breach 

11 remediation and prevention. 

12 CONSTRUCTION, MINOR PROJECTS

13 For an additional amount for ‘‘Construction, Minor 

14 Projects’’, $326,000,000, to remain available until ex15 pended, of which up to $36,000,000 shall be for construction 

16 costs associated with the establishment of polytrauma resi17 dential transitional rehabilitation programs. 

18 GENERAL PROVISIONS—THIS CHAPTER 

19 SEC. 5701. The Director of the Congressional Budget 

20 Office shall, not later than November 15, 2007, submit to 

21 the Committees on Appropriations of the House of Rep22 resentatives and the Senate a report projecting appropria23 tions necessary for the Departments of Defense and Veterans 

24 Affairs to continue providing necessary health care to vet25 erans of the conflicts in Iraq and Afghanistan. The projec26 tions should span several scenarios for the duration and 
124

•HR 2206 EAH 

1 number of forces deployed in Iraq and Afghanistan, and 

2 more generally, for the long-term health care needs of de3 ployed troops engaged in the global war on terrorism over 

4 the next 10 years. 

5 SEC. 5702. Notwithstanding any other provision of 

6 law, appropriations made by Public Law 110–5, which the 

7 Secretary of Veterans Affairs contributes to the Department 

8 of Defense/Department of Veterans Affairs Health Care 

9 Sharing Incentive Fund under the authority of section 

10 8111(d) of title 38, United States Code, shall remain avail11 able until expended for any purpose authorized by section 

12 8111 of title 38, United States Code. 

13 SEC. 5703. (a)(1) The Secretary of Veterans Affairs 

14 (referred to in this section as the ‘‘Secretary’’) may convey 

15 to the State of Texas, without consideration, all rights, title, 

16 and interest of the United States in and to the parcel of 

17 real property comprising the location of the Marlin, Texas, 

18 Department of Veterans Affairs Medical Center. 

19 (2) The property conveyed under paragraph (1) shall 

20 be used by the State of Texas for the purposes of a prison. 

21 (b) In carrying out the conveyance under subsection 

22 (a), the Secretary shall conduct environmental cleanup on 

23 the parcel to be conveyed, at a cost not to exceed $500,000, 

24 using amounts made available for environmental cleanup 

25 of sites under the jurisdiction of the Secretary. 
125

•HR 2206 EAH 

1 (c) Nothing in this section may be construed to affect 

2 or limit the application of or obligation to comply with any 

3 environmental law, including section 120(h) of the Com4 prehensive Environmental Response, Compensation, and 

5 Liability Act of 1980 (42 U.S.C. 9620(h)). 

6 SEC. 5704. (a) Funds provided in this Act for the fol7 lowing accounts shall be made available for programs under 

8 the conditions contained in the language of the joint explan9 atory statement of managers accompanying the conference 

10 report on H.R. 1591 of the 110th Congress (H. Rept. 110–

11 107): 

12 ‘‘Medical Services’’. 

13 ‘‘Medical Administration’’. 

14 ‘‘Medical Facilities’’. 

15 ‘‘Medical and Prosthetic Research’’. 

16 ‘‘General Operating Expenses’’. 

17 ‘‘Information Technology Systems’’. 

18 ‘‘Construction, Minor Projects’’. 

19 (b) The Secretary of Veterans Affairs shall submit all 

20 reports requested in House Report 110–60 and Senate Re21 port 110–37, to the Committees on Appropriations of both 

22 Houses of Congress. 

23 SEC. 5705. Subsection (d) of section 2023 of title 38, 

24 United States Code, is amended by striking ‘‘shall cease’’ 
126

•HR 2206 EAH 

1 and all that follows through ‘‘program’’ and inserting ‘‘shall 

2 cease on September 30, 2007’’. 

3 TITLE VI—OTHER MATTERS 

4 CHAPTER 1

5 DEPARTMENT OF AGRICULTURE 

6 FARM SERVICE AGENCY

7 SALARIES AND EXPENSES

8 For an additional amount for ‘‘Salaries and Ex9 penses’’ of the Farm Service Agency, $37,500,000, to remain 

10 available until September 30, 2008: Provided, That this 

11 amount shall only be available for network and database/

12 application stabilization. 

13 GENERAL PROVISIONS—THIS CHAPTER 

14 SEC. 6101. Of the funds made available through appro15 priations to the Food and Drug Administration for fiscal 

16 year 2007, not less than $4,000,000 shall be for the Office 

17 of Women’s Health of such Administration. 

18 SEC. 6102. None of the funds made available to the 

19 Department of Agriculture for fiscal year 2007 may be used 

20 to implement the risk-based inspection program in the 30 

21 prototype locations announced on February 22, 2007, by 

22 the Under Secretary for Food Safety, or at any other loca23 tions, until the USDA Office of Inspector General has pro24 vided its findings to the Food Safety and Inspection Service 

25 and the Committees on Appropriations of the House of Rep-
127

•HR 2206 EAH 

1 resentatives and the Senate on the data used in support 

2 of the development and design of the risk-based inspection 

3 program and FSIS has addressed and resolved issues iden4 tified by OIG. 

5 CHAPTER 2

6 GENERAL PROVISIONS—THIS CHAPTER 

7 SEC. 6201. Hereafter, Federal employees at the Na8 tional Energy Technology Laboratory shall be classified as 

9 inherently governmental for the purpose of the Federal Ac10 tivities Inventory Reform Act of 1998 (31 U.S.C. 501 note). 

11 SEC. 6202. None of the funds made available under 

12 this or any other Act shall be used during fiscal year 2007 

13 to make, or plan or prepare to make, any payment on bonds 

14 issued by the Administrator of the Bonneville Power Ad15 ministration (referred in this section as the ‘‘Adminis16 trator’’) or for an appropriated Federal Columbia River 

17 Power System investment, if the payment is both—

18 (1) greater, during any fiscal year, than the 

19 payments calculated in the rate hearing of the Ad20 ministrator to be made during that fiscal year using 

21 the repayment method used to establish the rates of 

22 the Administrator as in effect on October 1, 2006; and 

23 (2) based or conditioned on the actual or ex24 pected net secondary power sales receipts of the Ad25 ministrator. 
128

•HR 2206 EAH 

1 CHAPTER 3

2 GENERAL PROVISIONS—THIS CHAPTER 

3 SEC. 6301. (a) Section 102(a)(3)(B) of the Help Amer4 ica Vote Act of 2002 (42 U.S.C. 15302(a)(3)(B)) is amended 

5 by striking ‘‘January 1, 2006’’ and inserting ‘‘March 1, 

6 2008’’. 

7 (b) The amendment made by subsection (a) shall take 

8 effect as if included in the enactment of the Help America 

9 Vote Act of 2002. 

10 SEC. 6302. The structure of any of the offices or compo11 nents within the Office of National Drug Control Policy 

12 shall remain as they were on October 1, 2006. None of the 

13 funds appropriated or otherwise made available in the Con14 tinuing Appropriations Resolution, 2007 (Public Law 110–

15 5) may be used to implement a reorganization of offices 

16 within the Office of National Drug Control Policy without 

17 the explicit approval of the Committees on Appropriations 

18 of the House of Representatives and the Senate. 

19 SEC. 6303. From the amount provided by section 

20 21067 of the Continuing Appropriations Resolution, 2007 

21 (Public Law 110–5), the National Archives and Records 

22 Administration may obligate monies necessary to carry out 

23 the activities of the Public Interest Declassification Board. 

24 SEC. 6304. Notwithstanding the notice requirement of 

25 the Transportation, Treasury, Housing and Urban Devel-
129

•HR 2206 EAH 

1 opment, the Judiciary, the District of Columbia, and Inde2 pendent Agencies Appropriations Act, 2006, 119 Stat. 2509 

3 (Public Law 109–115), as continued in section 104 of the 

4 Continuing Appropriations Resolution, 2007 (Public Law 

5 110–5), the District of Columbia Courts may reallocate not 

6 more than $1,000,000 of the funds provided for fiscal year 

7 2007 under the Federal Payment to the District of Colum8 bia Courts for facilities among the items and entities funded 

9 under that heading for operations. 

10 SEC. 6305. (a) Not later than 90 days after the date 

11 of enactment of this Act, the Secretary of the Treasury, in 

12 coordination with the Securities and Exchange Commission 

13 and in consultation with the Departments of State and En14 ergy, shall prepare and submit to the Senate Committee on 

15 Appropriations, the House Committee on Appropriations, 

16 the Senate Committee on Banking, Housing, and Urban Af17 fairs, the House Committee on Financial Services, the Sen18 ate Foreign Relations Committee, and the House Foreign 

19 Affairs Committee a written report, which may include a 

20 classified annex, containing the names of companies which 

21 either directly or through a parent or subsidiary company, 

22 including partly-owned subsidiaries, are known to conduct 

23 significant business operations in Sudan relating to nat24 ural resource extraction, including oil-related activities and 

25 mining of minerals. The reporting provision shall not apply 
130

•HR 2206 EAH 

1 to companies operating under licenses from the Office of 

2 Foreign Assets Control or otherwise expressly exempted 

3 under United States law from having to obtain such licenses 

4 in order to operate in Sudan. 

5 (b) Not later than 45 days following the submission 

6 to Congress of the list of companies conducting business op7 erations in Sudan relating to natural resource extraction 

8 as required above, the General Services Administration 

9 shall determine whether the United States Government has 

10 an active contract for the procurement of goods or services 

11 with any of the identified companies, and provide notifica12 tion to the appropriate committees of Congress, which may 

13 include a classified annex, regarding the companies, nature 

14 of the contract, and dollar amounts involved. 

15 (INCLUDING RESCISSION)

16 SEC. 6306. (a) Of the funds provided for the General 

17 Services Administration, ‘‘Office of Inspector General’’ in 

18 section 21061 of the Continuing Appropriations Resolution, 

19 2007 (division B of Public Law 109–289, as amended by 

20 Public Law 110–5), $4,500,000 are rescinded. 

21 (b) For an additional amount for the General Services 

22 Administration, ‘‘Office of Inspector General’’, $4,500,000, 

23 to remain available until September 30, 2008. 

24 (c) With the additional amount of $9,336,000 appro25 priated in Public Law 110–5 and in this Act, above the 

26 amount appropriated in Public Law 109–115, of which 
131

•HR 2206 EAH 

1 $4,500,000 remains available for obligation in fiscal year 

2 2008, the Office of Inspector General shall hire additional 

3 staff for internal audits and investigations, and the remain4 ing funds shall be for one-time associated needs such as in5 formation technology and other such administrative sup6 port. 

7 SEC. 6307. Section 21073 of the Continuing Appro8 priations Resolution, 2007 (Public Law 110–5) is amended 

9 by adding a new subsection (j) as follows: 

10 ‘‘(j) Notwithstanding section 101, any appropriation 

11 or funds made available to the District of Columbia pursu12 ant to this Act for ‘Federal Payment for Foster Care Im13 provement in the District of Columbia’ shall be available 

14 in accordance with an expenditure plan submitted by the 

15 Mayor of the District of Columbia not later than 60 days 

16 after the enactment of this section which details the activi17 ties to be carried out with such Federal Payment.’’. 

18 SEC. 6308. It is the sense of Congress that the Small 

19 Business Administration will provide, through funds avail20 able within amounts already appropriated for Small Busi21 ness Administration disaster assistance, physical and eco22 nomic injury disaster loans to Kansas businesses and home23 owners devastated by the severe tornadoes, storms, and 

24 flooding that occurred beginning on May 4, 2007. 
132

•HR 2206 EAH 

1 CHAPTER 4

2 DEPARTMENT OF HOMELAND SECURITY 

3 GENERAL PROVISIONS—THIS CHAPTER 

4 SEC. 6401. Not to exceed $30,000,000 from unobligated 

5 balances remaining from prior appropriations for United 

6 States Coast Guard, ‘‘Retired Pay’’, shall remain available 

7 until expended in the account and for the purposes for 

8 which the appropriations were provided, including the pay9 ment of obligations otherwise chargeable to lapsed or cur10 rent appropriations for this purpose: Provided, That within 

11 45 days after the date of enactment of this Act, the United 

12 States Coast Guard shall submit to the Committees on Ap13 propriations of the Senate and the House of Representatives 

14 the following: (1) a report on steps being taken to improve 

15 the accuracy of its estimates for the ‘‘Retired Pay’’ appro16 priation; and (2) quarterly reports on the use of unobligated 

17 balances made available by this Act to address the projected 

18 shortfall in the ‘‘Retired Pay’’ appropriation, as well as 

19 updated estimates for fiscal year 2008. 

20 SEC. 6402. (a) IN GENERAL.—Any contract, sub21 contract, task or delivery order described in subsection (b) 

22 shall contain the following: 

23 (1) A requirement for a technical review of all 

24 designs, design changes, and engineering change pro25 posals, and a requirement to specifically address all 
133

•HR 2206 EAH 

1 engineering concerns identified in the review before 

2 the obligation of further funds may occur. 

3 (2) A requirement that the Coast Guard main4 tain technical warrant holder authority, or the equiv5 alent, for major assets. 

6 (3) A requirement that no procurement subject to 

7 subsection (b) for lead asset production or the imple8 mentation of a major design change shall be entered 

9 into unless an independent third party with no fi10 nancial interest in the development, construction, or 

11 modification of any component of the asset, selected 

12 by the Commandant, determines that such action is 

13 advisable. 

14 (4) A requirement for independent life-cycle cost 

15 estimates of lead assets and major design and engi16 neering changes. 

17 (5) A requirement for the measurement of con18 tractor and subcontractor performance based on the 

19 status of all work performed. For contracts under the 

20 Integrated Deepwater Systems program, such require21 ment shall include a provision that links award fees 

22 to successful acquisition outcomes (which shall be de23 fined in terms of cost, schedule, and performance). 

24 (6) A requirement that the Commandant of the 

25 Coast Guard assign an appropriate officer or em-
134

•HR 2206 EAH 

1 ployee of the Coast Guard to act as chair of each inte2 grated product team and higher-level team assigned to 

3 the oversight of each integrated product team. 

4 (7) A requirement that the Commandant of the 

5 Coast Guard may not award or issue any contract, 

6 task or delivery order, letter contract modification 

7 thereof, or other similar contract, for the acquisition 

8 or modification of an asset under a procurement sub9 ject to subsection (b) unless the Coast Guard and the 

10 contractor concerned have formally agreed to all 

11 terms and conditions or the head of contracting activ12 ity for the Coast Guard determines that a compelling 

13 need exists for the award or issue of such instrument. 

14 (b) CONTRACTS, SUBCONTRACTS, TASK AND DELIVERY

15 ORDERS COVERED.—Subsection (a) applies to—

16 (1) any major procurement contract, first-tier 

17 subcontract, delivery or task order entered into by the 

18 Coast Guard; 

19 (2) any first-tier subcontract entered into under 

20 such a contract; and 

21 (3) any task or delivery order issued pursuant to 

22 such a contract or subcontract. 

23 (c) EXPENDITURE OF DEEPWATER FUNDS.—Of the 

24 funds available for the Integrated Deepwater Systems pro25 gram, $650,000,000 may not be obligated until the Commit-
135

•HR 2206 EAH 

1 tees on Appropriations of the Senate and the House of Rep2 resentatives receive an expenditure plan directly from the 

3 Coast Guard that—

4 (1) defines activities, milestones, yearly costs, 

5 and life-cycle costs for each procurement of a major 

6 asset; 

7 (2) identifies life-cycle staffing and training 

8 needs of Coast Guard project managers and of pro9 curement and contract staff; 

10 (3) identifies competition to be conducted in each 

11 procurement; 

12 (4) describes procurement plans that do not rely 

13 on a single industry entity or contract; 

14 (5) contains very limited indefinite delivery/in15 definite quantity contracts and explains the need for 

16 any indefinite delivery/indefinite quantity contracts; 

17 (6) complies with all applicable acquisition 

18 rules, requirements, and guidelines, and incorporates 

19 the best systems acquisition management practices of 

20 the Federal Government; 

21 (7) complies with the capital planning and in22 vestment control requirements established by the Of23 fice of Management and Budget, including circular 

24 A–11, part 7; 
136

•HR 2206 EAH 

1 (8) includes a certification by the head of con2 tracting activity for the Coast Guard and the Chief 

3 Procurement Officer of the Department of Homeland 

4 Security that the Coast Guard has established suffi5 cient controls and procedures and has sufficient staff6 ing to comply with all contracting requirements, and 

7 that any conflicts of interest have been sufficiently ad8 dressed; 

9 (9) includes a description of the process used to 

10 act upon deviations from the contractually specified 

11 performance requirements and clearly explains the ac12 tions taken on such deviations; 

13 (10) includes a certification that the Assistant 

14 Commandant of the Coast Guard for Engineering and 

15 Logistics is designated as the technical authority for 

16 all engineering, design, and logistics decisions per17 taining to the Integrated Deepwater Systems pro18 gram; and 

19 (11) identifies progress in complying with the re20 quirements of subsection (a). 

21 (d) REPORTS.—(1) Not later than 30 days after the 

22 date of enactment of this Act, the Commandant of the Coast 

23 Guard shall submit to the Committees on Appropriations 

24 of the Senate and the House of Representatives; the Com25 mittee on Commerce, Science and Transportation of the 
137

•HR 2206 EAH 

1 Senate; and the Committee on Transportation and Infra2 structure of the House of Representatives: (i) a report on 

3 the resources (including training, staff, and expertise) re4 quired by the Coast Guard to provide appropriate manage5 ment and oversight of the Integrated Deepwater Systems 

6 program; and (ii) a report on how the Coast Guard will 

7 utilize full and open competition for any contract that pro8 vides for the acquisition or modification of assets under, 

9 or in support of, the Integrated Deepwater Systems pro10 gram, entered into after the date of enactment of this Act. 

11 (2) Within 30 days following the submission of the ex12 penditure plan required under subsection (c), the Govern13 ment Accountability Office shall review the plan and brief 

14 the Committees on Appropriations of the Senate and the 

15 House of Representatives on its findings. 

16 SEC. 6403. None of the funds provided in this Act or 

17 any other Act may be used to alter or reduce operations 

18 within the Civil Engineering Program of the Coast Guard 

19 nationwide, including the civil engineering units, facilities, 

20 design and construction centers, maintenance and logistics 

21 command centers, and the Coast Guard Academy, except 

22 as specifically authorized by a statute enacted after the date 

23 of enactment of this Act. 

24 (INCLUDING RESCISSIONS OF FUNDS)

25 SEC. 6404. (a) RESCISSIONS.—The following unobli26 gated balances made available pursuant to section 505 of 
138

•HR 2206 EAH 

1 Public Law 109–90 are rescinded: $1,200,962 from the ‘‘Of2 fice of the Secretary and Executive Management’’; $512,855 

3 from the ‘‘Office of the Under Secretary for Management’’; 

4 $461,874 from the ‘‘Office of the Chief Information Officer’’; 

5 $45,080 from the ‘‘Office of the Chief Financial Officer’’; 

6 $968,211 from Preparedness ‘‘Management and Adminis7 tration’’; $1,215,486 from Science and Technology ‘‘Man8 agement and Administration’’; $450,000 from United 

9 States Secret Service ‘‘Salaries and Expenses’’; $450,000 

10 from Federal Emergency Management Agency ‘‘Adminis11 trative and Regional Operations’’; and $25,595,532 from 

12 United States Coast Guard ‘‘Operating Expenses’’. 

13 (b) ADDITIONAL APPROPRIATIONS.—

14 (1) For an additional amount for United States 

15 Coast Guard ‘‘Acquisition, Construction, and Im16 provements’’, $30,000,000, to remain available until 

17 September 30, 2009, to mitigate the Service’s patrol 

18 boat operational gap. 

19 (2) For an additional amount for the ‘‘Office of 

20 the Under Secretary for Management’’, $900,000 for 

21 an independent study to compare the Department of 

22 Homeland Security senior career and political staff23 ing levels and senior career training programs with 

24 those of similarly structured cabinet-level agencies as 

25 detailed in House Report 110–107: Provided, That the 
139

•HR 2206 EAH 

1 Department of Homeland Security shall provide to 

2 the Committees on Appropriations of the Senate and 

3 the House of Representatives by July 20, 2007, a re4 port on senior staffing, as detailed in Senate Report 

5 110–37, and the Government Accountability Office 

6 shall report on the strengths and weakness of this re7 port within 90 days after its submission. 

8 SEC. 6405. (a) IN GENERAL.—With respect to con9 tracts entered into after July 1, 2007, and except as pro10 vided in subsection (b), no entity performing lead system 

11 integrator functions in the acquisition of a major system 

12 by the Department of Homeland Security may have any 

13 direct financial interest in the development or construction 

14 of any individual system or element of any system of sys15 tems. 

16 (b) EXCEPTION.—An entity described in subsection (a) 

17 may have a direct financial interest in the development or 

18 construction of an individual system or element of a system 

19 of systems if—

20 (1) the Secretary of Homeland Security certifies 

21 to the Committees on Appropriations of the Senate 

22 and the House of Representatives, the Committee on 

23 Homeland Security of the House of Representatives, 

24 the Committee on Transportation and Infrastructure 

25 of the House of Representatives, the Committee on 
140

•HR 2206 EAH 

1 Homeland Security and Governmental Affairs of the 

2 Senate, and the Committee on Commerce, Science and 

3 Transportation of the Senate that—

4 (A) the entity was selected by the Depart5 ment of Homeland Security as a contractor to 

6 develop or construct the system or element con7 cerned through the use of competitive procedures; 

8 and 

9 (B) the Department took appropriate steps 

10 to prevent any organizational conflict of interest 

11 in the selection process; or 

12 (2) the entity was selected by a subcontractor to 

13 serve as a lower-tier subcontractor, through a process 

14 over which the entity exercised no control. 

15 (c) CONSTRUCTION.—Nothing in this section shall be 

16 construed to preclude an entity described in subsection (a) 

17 from performing work necessary to integrate two or more 

18 individual systems or elements of a system of systems with 

19 each other. 

20 (d) REGULATIONS UPDATE.—Not later than July 1, 

21 2007, the Secretary of Homeland Security shall update the 

22 acquisition regulations of the Department of Homeland Se23 curity in order to specify fully in such regulations the mat24 ters with respect to lead system integrators set forth in this 

25 section. Included in such regulations shall be: (1) a precise 
141

•HR 2206 EAH 

1 and comprehensive definition of the term ‘‘lead system inte2 grator’’, modeled after that used by the Department of De3 fense; and (2) a specification of various types of contracts 

4 and fee structures that are appropriate for use by lead sys5 tem integrators in the production, fielding, and 

6 sustainment of complex systems. 

7 CHAPTER 5

8 GENERAL PROVISIONS—THIS CHAPTER 

9 SEC. 6501. Section 20515 of the Continuing Appro10 priations Resolution, 2007 (division B of Public Law 109–

11 289, as amended by Public Law 110–5) is amended by in12 serting before the period: ‘‘; and of which, not to exceed 

13 $143,628,000 shall be available for contract support costs 

14 under the terms and conditions contained in Public Law 

15 109–54’’. 

16 SEC. 6502. Section 20512 of the Continuing Appro17 priations Resolution, 2007 (division B of Public Law 109–

18 289, as amended by Public Law 110–5) is amended by in19 serting after the first dollar amount: ‘‘, of which not to ex20 ceed $7,300,000 shall be transferred to the ‘Indian Health 

21 Facilities’ account; the amount in the second proviso shall 

22 be $18,000,000; the amount in the third proviso shall be 

23 $525,099,000; the amount in the ninth proviso shall be 

24 $269,730,000; and the $15,000,000 allocation of funding 

25 under the eleventh proviso shall not be required’’. 
142

•HR 2206 EAH 

1 SEC. 6503. Section 20501 of the Continuing Appro2 priations Resolution, 2007 (division B of Public Law 109–

3 289, as amended by Public Law 110–5) is amended by in4 serting after ‘‘$55,663,000’’ the following: ‘‘of which 

5 $13,000,000 shall be for Save America’s Treasures’’. 

6 SEC. 6504. Funds made available to the United States 

7 Fish and Wildlife Service for fiscal year 2007 under the 

8 heading ‘‘Land Acquisition’’ may be used for land conserva9 tion partnerships authorized by the Highlands Conserva10 tion Act of 2004. 

11 CHAPTER 6

12 DEPARTMENT OF HEALTH AND HUMAN 

13 SERVICES 

14 NATIONAL INSTITUTES OF HEALTH

15 NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS

16 DISEASES

17 (TRANSFER OF FUNDS)

18 Of the amount provided by the Continuing Appropria19 tions Resolution, 2007 (division B of Public Law 109–289, 

20 as amended by Public Law 110–5) for ‘‘National Institute 

21 of Allergy and Infectious Diseases’’, $49,500,000 shall be 

22 transferred to ‘‘Public Health and Social Services Emer23 gency Fund’’ to carry out activities relating to advanced 

24 research and development as provided by section 319L of 

25 the Public Health Service Act. 
143

•HR 2206 EAH 

1 OFFICE OF THE DIRECTOR

2 (TRANSFER OF FUNDS)

3 Of the amount provided by the Continuing Appropria4 tions Resolution, 2007 (division B of Public Law 109–289, 

5 as amended by Public Law 110–5) for ‘‘Office of the Direc6 tor’’, $49,500,000 shall be transferred to ‘‘Public Health and 

7 Social Services Emergency Fund’’ to carry out activities 

8 relating to advanced research and development as provided 

9 by section 319L of the Public Health Service Act. 

10 NATIONAL COUNCIL ON DISABILITY

11 SALARIES AND EXPENSES

12 For an additional amount for ‘‘Salaries and Ex13 penses’’, $300,000, to remain available until expended, for 

14 necessary expenses related to the requirements of the Post15 Katrina Emergency Management Reform Act of 2006, as 

16 enacted by the Department of Homeland Security Appro17 priations Act, 2007 (Public Law 109–295). 

18 GENERAL PROVISIONS—THIS CHAPTER 

19 (INCLUDING TRANSFERS OF FUNDS AND RESCISSIONS)

20 SEC. 6601. Section 20602 of the Continuing Appro21 priations Resolution, 2007 (division B of Public Law 109–

22 289, as amended by Public Law 110–5) is amended by in23 serting the following after ‘‘$5,000,000’’: ‘‘(together with an 

24 additional $7,000,000 which shall be transferred by the 

25 Pension Benefit Guaranty Corporation as an authorized 
144

•HR 2206 EAH 

1 administrative cost), to remain available through Sep2 tember 30, 2008,’’. 

3 SEC. 6602. (a) None of the funds available to the Mine 

4 Safety and Health Administration under the Continuing 

5 Appropriations Resolution, 2007 (division B of Public Law 

6 109–289, as amended by Public Law 110–5) shall be used 

7 to enter into or carry out a contract for the performance 

8 by a contractor of any operations or services pursuant to 

9 the public-private competitions conducted under Office of 

10 Management and Budget Circular A–76. 

11 (b) Hereafter, Federal employees at the Mine Safety 

12 and Health Administration shall be classified as inherently 

13 governmental for the purpose of the Federal Activities In14 ventory Reform Act of 1998 (31 U.S.C. 501 note). 

15 SEC. 6603. Section 20607 of the Continuing Appro16 priations Resolution, 2007 (division B of Public Law 109–

17 289, as amended by Public Law 110–5) is amended by in18 serting ‘‘of which $9,666,000 shall be for the Women’s Bu19 reau,’’ after ‘‘for child labor activities,’’. 

20 SEC. 6604. Of the amount provided for ‘‘Department 

21 of Health and Human Services, Health Resources and Serv22 ices Administration, Health Resources and Services’’ in the 

23 Continuing Appropriations Resolution, 2007 (division B of 

24 Public Law 109–289, as amended by Public Law 110–5), 

25 $23,000,000 shall be for Poison Control Centers. 
145

•HR 2206 EAH 

1 SEC. 6605. From the amounts made available by the 

2 Continuing Appropriations Resolution, 2007 (division B of 

3 Public Law 109–289, as amended by Public Law 110–5) 

4 for the Office of the Secretary, General Departmental Man5 agement under the Department of Health and Human Serv6 ices, $500,000 are rescinded. 

7 SEC. 6606. Section 20625(b)(1) of the Continuing Ap8 propriations Resolution, 2007 (division B of Public Law 

9 109–289, as amended by Public Law 110–5) is amended 

10 by—

11 (1) striking ‘‘$7,172,994,000’’ and inserting 

12 ‘‘$7,176,431,000’’; 

13 (2) amending subparagraph (A) to read as fol14 lows: ‘‘(A) $5,454,824,000 shall be for basic grants 

15 under section 1124 of the Elementary and Secondary 

16 Education Act of 1965 (ESEA), of which up to 

17 $3,437,000 shall be available to the Secretary of Edu18 cation on October 1, 2006, to obtain annually up19 dated educational-agency-level census poverty data 

20 from the Bureau of the Census;’’; and 

21 (3) amending subparagraph (C) to read as fol22 lows: ‘‘(C) not to exceed $2,352,000 may be available 

23 for section 1608 of the ESEA and for a clearinghouse 

24 on comprehensive school reform under part D of title 

25 V of the ESEA;’’. 
146

•HR 2206 EAH 

1 SEC. 6607. The provision in the first proviso under 

2 the heading ‘‘Rehabilitation Services and Disability Re3 search’’ in the Department of Education Appropriations 

4 Act, 2006, relating to alternative financing programs under 

5 section 4(b)(2)(D) of the Assistive Technology Act of 1998 

6 shall not apply to funds appropriated by the Continuing 

7 Appropriations Resolution, 2007. 

8 SEC. 6608. From the amounts made available by the 

9 Continuing Appropriations Resolution, 2007 (division B of 

10 Public Law 109–289, as amended by Public Law 110–5) 

11 for administrative expenses of the Department of Edu12 cation, $500,000 are rescinded: Provided, That such reduc13 tion shall not apply to funds available to the Office for Civil 

14 Rights and the Office of the Inspector General. 

15 SEC. 6609. Notwithstanding sections 20639 and 20640 

16 of the Continuing Appropriations Resolution, 2007, as 

17 amended by section 2 of the Revised Continuing Appropria18 tions Resolution, 2007 (Public Law 110–5), the Chief Exec19 utive Officer of the Corporation for National and Commu20 nity Service may transfer an amount of not more than 

21 $1,360,000 from the account under the heading ‘‘National 

22 and Community Service Programs, Operating Expenses’’ 

23 under the heading ‘‘Corporation for National and Commu24 nity Service’’, to the account under the heading ‘‘Salaries 
147

•HR 2206 EAH 

1 and Expenses’’ under the heading ‘‘Corporation for Na2 tional and Community Service’’. 

3 SEC. 6610. (a) Section 1310.12(a) of title 45, Code of 

4 Federal Regulations, shall take effect 30 days after the date 

5 of enactment of this Act. 

6 (b)(1) Not later than 60 days after the National High7 way Traffic Safety Administration of the Department of 

8 Transportation submits its study on occupant protection on 

9 Head Start transit vehicles (related to Government Ac10 countability Office report GAO–06–767R), the Secretary of 

11 Health and Human Services shall review and shall revise 

12 as necessary the allowable alternate vehicle standards de13 scribed in that part 1310 (or any corresponding similar 

14 regulation or ruling) relating to allowable alternate vehicles 

15 used to transport children for a Head Start program. In 

16 making any such revision, the Secretary shall revise the 

17 standards to be consistent with the findings contained in 

18 such study, including making a determination on the ex19 emption of such a vehicle from Federal seat spacing require20 ments, and Federal supporting seating requirements related 

21 to compartmentalization, if such vehicle meets all other ap22 plicable Federal motor vehicle safety standards, including 

23 standards for seating systems, occupant crash protection, 

24 seat belt assemblies, and child restraint anchorage systems 
148

•HR 2206 EAH 

1 consistent with that part 1310 (or any corresponding simi2 lar regulation or ruling). 

3 (2) Notwithstanding subsection (a), until such date as 

4 the Secretary of Health and Human Services completes the 

5 review and any necessary revision specified in paragraph 

6 (1), the provisions of section 1310.12(a) relating to Federal 

7 seat spacing requirements, and Federal supporting seating 

8 requirements related to compartmentalization, for allowable 

9 alternate vehicles used to transport children for a Head 

10 Start program, shall not apply to such a vehicle if such 

11 vehicle meets all other applicable Federal motor vehicle safe12 ty standards, as described in paragraph (1). 

13 SEC. 6611. (a)(1) Section 3(37)(G) of the Employee 

14 Retirement Income Security Act of 1974 (29 U.S.C. 

15 1002(37)(G)) (as amended by section 1106(a) of the Pension 

16 Protection Act of 2006) is amended—

17 (A) in clause (i)(II)(aa), by striking ‘‘for each of 

18 the 3 plan years immediately before the date of the 

19 enactment of the Pension Protection Act of 2006,’’ 

20 and inserting ‘‘for each of the 3 plan years imme21 diately preceding the first plan year for which the 

22 election under this paragraph is effective with respect 

23 to the plan,’’; 

24 (B) in clause (ii), by striking ‘‘starting with the 

25 first plan year ending after the date of the enactment 
149

•HR 2206 EAH 

1 of the Pension Protection Act of 2006’’ and inserting 

2 ‘‘starting with any plan year beginning on or after 

3 January 1, 1999, and ending before January 1, 2008, 

4 as designated by the plan in the election made under 

5 clause (i)(II)’’; and 

6 (C) by adding at the end the following new 

7 clause: 

8 ‘‘(vii) For purposes of this Act and the Internal Rev9 enue Code of 1986, a plan making an election under this 

10 subparagraph shall be treated as maintained pursuant to 

11 a collective bargaining agreement if a collective bargaining 

12 agreement, expressly or otherwise, provides for or permits 

13 employer contributions to the plan by one or more employ14 ers that are signatory to such agreement, or participation 

15 in the plan by one or more employees of an employer that 

16 is signatory to such agreement, regardless of whether the 

17 plan was created, established, or maintained for such em18 ployees by virtue of another document that is not a collec19 tive bargaining agreement.’’. 

20 (2) Paragraph (6) of section 414(f) of the Internal Rev21 enue Code of 1986 (relating to election with regard to multi22 employer status) (as amended by section 1106(b) of the Pen23 sion Protection Act of 2006) is amended—

24 (A) in subparagraph (A)(ii)(I), by striking ‘‘for 

25 each of the 3 plan years immediately before the date 
150

•HR 2206 EAH 

1 of enactment of the Pension Protection Act of 2006,’’ 

2 and inserting ‘‘for each of the 3 plan years imme3 diately preceding the first plan year for which the 

4 election under this paragraph is effective with respect 

5 to the plan,’’; 

6 (B) in subparagraph (B), by striking ‘‘starting 

7 with the first plan year ending after the date of the 

8 enactment of the Pension Protection Act of 2006’’ and 

9 inserting ‘‘starting with any plan year beginning on 

10 or after January 1, 1999, and ending before January 

11 1, 2008, as designated by the plan in the election 

12 made under subparagraph (A)(ii)’’; and 

13 (C) by adding at the end the following new sub14 paragraph: 

15 ‘‘(F) MAINTENANCE UNDER COLLECTIVE

16 BARGAINING AGREEMENT.—For purposes of this 

17 title and the Employee Retirement Income Secu18 rity Act of 1974, a plan making an election 

19 under this paragraph shall be treated as main20 tained pursuant to a collective bargaining agree21 ment if a collective bargaining agreement, ex22 pressly or otherwise, provides for or permits em23 ployer contributions to the plan by one or more 

24 employers that are signatory to such agreement, 

25 or participation in the plan by one or more em-
151

•HR 2206 EAH 

1 ployees of an employer that is signatory to such 

2 agreement, regardless of whether the plan was 

3 created, established, or maintained for such em4 ployees by virtue of another document that is not 

5 a collective bargaining agreement.’’. 

6 (b)(1) Clause (vi) of section 3(37)(G) of the Employee 

7 Retirement Income Security Act of 1974 (as amended by 

8 section 1106(a) of the Pension Protection Act of 2006) is 

9 amended by striking ‘‘if it is a plan—’’ and all that follows 

10 and inserting the following: ‘‘if it is a plan sponsored by 

11 an organization which is described in section 501(c)(5) of 

12 the Internal Revenue Code of 1986 and exempt from tax 

13 under section 501(a) of such Code and which was estab14 lished in Chicago, Illinois, on August 12, 1881.’’. 

15 (2) Subparagraph (E) of section 414(f)(6) of the Inter16 nal Revenue Code of 1986 (as amended by section 1106(b) 

17 of the Pension Protection Act of 2006) is amended by strik18 ing ‘‘if it is a plan—’’ and all that follows and inserting 

19 the following: ‘‘if it is a plan sponsored by an organization 

20 which is described in section 501(c)(5) and exempt from 

21 tax under section 501(a) and which was established in Chi22 cago, Illinois, on August 12, 1881.’’. 

23 (c) The amendments made by this section shall take 

24 effect as if included in section 1106 of the Pension Protec25 tion Act of 2006. 
152

•HR 2206 EAH 

1 SEC. 6612. (a) Subclause (III) of section 

2 420(f)(2)(E)(i) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘subsection (c)(2)(E)(ii)(II)’’ and in4 serting ‘‘subsection (c)(3)(E)(ii)(II)’’. 

5 (b) Section 420(e)(2)(B) of the Internal Revenue Code 

6 of 1986 is amended by striking ‘‘funding shortfall’’ and in7 serting ‘‘funding target’’. 

8 (c) The amendments made by this section shall take 

9 effect as if included in the provisions of the Pension Protec10 tion Act of 2006 to which they relate. 

11 SEC. 6613. (a) Subparagraph (A) of section 420(c)(3) 

12 of the Internal Revenue Code of 1986 is amended by strik13 ing ‘‘transfer.’’ and inserting ‘‘transfer or, in the case of 

14 a transfer which involves a plan maintained by an em15 ployer described in subsection (f)(2)(E)(i)(III), if the plan 

16 meets the requirements of subsection (f)(2)(D)(i)(II).’’. 

17 (b) The amendment made by subsection (a) shall apply 

18 to transfers after the date of the enactment of this Act. 

19 SEC. 6614. (a) Section 402(i)(1) of the Pension Protec20 tion Act of 2006 is amended by striking ‘‘December 28, 

21 2007’’ and inserting ‘‘January 1, 2008’’. 

22 (b) The amendment made by subsection (a) shall take 

23 effect as if included in section 402 of the Pension Protection 

24 Act of 2006. 
153

•HR 2206 EAH 

1 SEC. 6615. (a) Section 402(a)(2) of the Pension Pro2 tection Act of 2006 is amended by inserting ‘‘and by using, 

3 in determining the funding target for each of the 10 plan 

4 years during such period, an interest rate of 8.25 percent 

5 (rather than the segment rates calculated on the basis of 

6 the corporate bond yield curve)’’ after ‘‘such plan year’’. 

7 (b) The amendment made by this section shall take ef8 fect as if included in the provisions of the Pension Protec9 tion Act of 2006 to which such amendment relates. 

10 CHAPTER 7

11 LEGISLATIVE BRANCH 

12 HOUSE OF REPRESENTATIVES 

13 PAYMENT TO WIDOWS AND HEIRS OF DECEASED

14 MEMBERS OF CONGRESS

15 For payment to Gloria W. Norwood, widow of Charles 

16 W. Norwood, Jr., late a Representative from the State of 

17 Georgia, $165,200. 

18 For payment to James McDonald, Jr., widower of 

19 Juanita Millender-McDonald, late a Representative from 

20 the State of California, $165,200. 

21 GENERAL PROVISION—THIS CHAPTER 

22 SEC. 6701. (a) There is established in the Office of the 

23 Architect of the Capitol the position of Chief Executive Offi24 cer for Visitor Services (in this section referred to as the 
154

•HR 2206 EAH 

1 ‘‘Chief Executive Officer’’), who shall be appointed by the 

2 Architect of the Capitol. 

3 (b) The Chief Executive Officer shall be responsible for 

4 the operation and management of the Capitol Visitor Cen5 ter, subject to the direction of the Architect of the Capitol. 

6 In carrying out these responsibilities, the Chief Executive 

7 Officer shall report directly to the Architect of the Capitol 

8 and shall be subject to policy review and oversight by the 

9 Committee on Rules and Administration of the Senate and 

10 the Committee on House Administration of the House of 

11 Representatives. 

12 (c) The Chief Executive Officer shall be paid at an an13 nual rate equal to the annual rate of pay for the Chief Oper14 ating Officer of the Office of the Architect of the Capitol. 

15 (d) This section shall apply with respect to fiscal year 

16 2007 and each succeeding fiscal year. 

17 CHAPTER 8

18 GENERAL PROVISIONS—THIS CHAPTER 

19 TECHNICAL AMENDMENT

20 SEC. 6801. (a) Notwithstanding any other provision 

21 of law, subsection (c) under the heading ‘‘Assistance for the 

22 Independent States of the Former Soviet Union’’ in Public 

23 Law 109–102, shall not apply to funds appropriated by the 

24 Continuing Appropriations Resolution, 2007 (Public Law 
155

•HR 2206 EAH 

1 109–289, division B) as amended by Public Laws 109–369, 

2 109–383, and 110–5. 

3 (b) Section 534(k) of the Foreign Operations, Export 

4 Financing, and Related Programs Appropriations Act, 

5 2006 (Public Law 109–102) is amended, in the second pro6 viso, by inserting after ‘‘subsection (b) of that section’’ the 

7 following: ‘‘and the requirement that a majority of the 

8 members of the board of directors be United States citizens 

9 provided in subsection (d)(3)(B) of that section’’. 

10 (c) Subject to section 101(c)(2) of the Continuing Ap11 propriations Resolution, 2007 (division B of Public Law 

12 109–289, as amended by Public Law 110–5), the amount 

13 of funds appropriated for ‘‘Foreign Military Financing 

14 Program’’ pursuant to such Resolution shall be construed 

15 to be the total of the amount appropriated for such program 

16 by section 20401 of that Resolution and the amount made 

17 available for such program by section 591 of the Foreign 

18 Operations, Export Financing, and Related Programs Ap19 propriations Act, 2006 (Public Law 109–102) which is 

20 made applicable to the fiscal year 2007 by the provisions 

21 of such Resolution. 

22 SEC. 6802. Notwithstanding any provision of title I 

23 of division B of the Continuing Appropriations Resolution, 

24 2007 (division B of Public Law 109–289, as amended by 

25 Public Laws 109–369, 109–383, and 110–5), the dollar 
156

•HR 2206 EAH 

1 amount limitation of the first proviso under the heading, 

2 ‘‘Administration of Foreign Affairs, Diplomatic and Con3 sular Programs’’, in title IV of the Science, State, Justice, 

4 Commerce, and Related Agencies Appropriations Act, 2006 

5 (Public Law 109–108; 119 Stat. 2319) shall not apply to 

6 funds appropriated under such heading for fiscal year 2007. 

7 CHAPTER 9

8 DEPARTMENT OF HOUSING AND URBAN 

9 DEVELOPMENT 

10 OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

11 SALARIES AND EXPENSES

12 (INCLUDING TRANSFER OF FUNDS)

13 For an additional amount to carry out the Federal 

14 Housing Enterprises Financial Safety and Soundness Act 

15 of 1992, $6,150,000, to remain available until expended, to 

16 be derived from the Federal Housing Enterprises Oversight 

17 Fund and to be subject to the same terms and conditions 

18 pertaining to funds provided under this heading in Public 

19 Law 109–115: Provided, That not to exceed the total 

20 amount provided for these activities for fiscal year 2007 

21 shall be available from the general fund of the Treasury to 

22 the extent necessary to incur obligations and make expendi23 tures pending the receipt of collections to the Fund: Pro24 vided further, That the general fund amount shall be re25 duced as collections are received during the fiscal year so 
157

•HR 2206 EAH 

1 as to result in a final appropriation from the general fund 

2 estimated at not more than $0. 

3 GENERAL PROVISIONS—THIS CHAPTER 

4 SEC. 6901. (a) Hereafter, funds limited or appro5 priated for the Department of Transportation may be obli6 gated or expended to grant authority to a Mexico-domiciled 

7 motor carrier to operate beyond United States municipali8 ties and commercial zones on the United States-Mexico bor9 der only to the extent that—

10 (1) granting such authority is first tested as part 

11 of a pilot program; 

12 (2) such pilot program complies with the re13 quirements of section 350 of Public Law 107–87 and 

14 the requirements of section 31315(c) of title 49, 

15 United States Code, related to pilot programs; and 

16 (3) simultaneous and comparable authority to 

17 operate within Mexico is made available to motor car18 riers domiciled in the United States. 

19 (b) Prior to the initiation of the pilot program de20 scribed in subsection (a) in any fiscal year—

21 (1) the Inspector General of the Department of 

22 Transportation shall transmit to Congress and the 

23 Secretary of Transportation a report verifying com24 pliance with each of the requirements of subsection (a) 

25 of section 350 of Public Law 107–87, including 
158

•HR 2206 EAH 

1 whether the Secretary of Transportation has estab2 lished sufficient mechanisms to apply Federal motor 

3 carrier safety laws and regulations to motor carriers 

4 domiciled in Mexico that are granted authority to op5 erate beyond the United States municipalities and 

6 commercial zones on the United States-Mexico border 

7 and to ensure compliance with such laws and regula8 tions; and 

9 (2) the Secretary of Transportation shall—

10 (A) take such action as may be necessary to 

11 address any issues raised in the report of the In12 spector General under subsection (b)(1) and sub13 mit a report to Congress detailing such actions; 

14 and 

15 (B) publish in the Federal Register, and 

16 provide sufficient opportunity for public notice 

17 and comment—

18 (i) comprehensive data and informa19 tion on the pre-authorization safety audits 

20 conducted before and after the date of enact21 ment of this Act of motor carriers domiciled 

22 in Mexico that are granted authority to op23 erate beyond the United States municipali24 ties and commercial zones on the United 

25 States-Mexico border; 
159

•HR 2206 EAH 

1 (ii) specific measures to be required to 

2 protect the health and safety of the public, 

3 including enforcement measures and pen4 alties for noncompliance; 

5 (iii) specific measures to be required to 

6 ensure compliance with section 391.11(b)(2) 

7 and section 365.501(b) of title 49, Code of 

8 Federal Regulations; 

9 (iv) specific standards to be used to 

10 evaluate the pilot program and compare 

11 any change in the level of motor carrier 

12 safety as a result of the pilot program; and 

13 (v) a list of Federal motor carrier safe14 ty laws and regulations, including the com15 mercial drivers license requirements, for 

16 which the Secretary of Transportation will 

17 accept compliance with a corresponding 

18 Mexican law or regulation as the equivalent 

19 to compliance with the United States law or 

20 regulation, including for each law or regu21 lation an analysis as to how the cor22 responding United States and Mexican laws 

23 and regulations differ. 

24 (c) During and following the pilot program described 

25 in subsection (a), the Inspector General of the Department 
160

•HR 2206 EAH 

1 of Transportation shall monitor and review the conduct of 

2 the pilot program and submit to Congress and the Secretary 

3 of Transportation an interim report, 6 months after the 

4 commencement of the pilot program, and a final report, 

5 within 60 days after the conclusion of the pilot program. 

6 Such reports shall address whether—

7 (1) the Secretary of Transportation has estab8 lished sufficient mechanisms to determine whether the 

9 pilot program is having any adverse effects on motor 

10 carrier safety; 

11 (2) Federal and State monitoring and enforce12 ment activities are sufficient to ensure that partici13 pants in the pilot program are in compliance with all 

14 applicable laws and regulations; and 

15 (3) the pilot program consists of a representative 

16 and adequate sample of Mexico-domiciled carriers 

17 likely to engage in cross-border operations beyond 

18 United States municipalities and commercial zones 

19 on the United States-Mexico border. 

20 (d) In the event that the Secretary of Transportation 

21 in any fiscal year seeks to grant operating authority for 

22 the purpose of initiating cross-border operations beyond 

23 United States municipalities and commercial zones on the 

24 United States-Mexico border either with Mexico-domiciled 

25 motor coaches or Mexico-domiciled commercial motor vehi-
161

•HR 2206 EAH 

1 cles carrying placardable quantities of hazardous materials, 

2 such activities shall be initiated only after the conclusion 

3 of a separate pilot program limited to vehicles of the perti4 nent type. Each such separate pilot program shall follow 

5 the same requirements and processes stipulated under sub6 sections (a) through (c) of this section and shall be planned, 

7 conducted and evaluated in concert with the Department 

8 of Homeland Security or its Inspector General, as appro9 priate, so as to address any and all security concerns associ10 ated with such cross-border operations. 

11 SEC. 6902. Funds provided for the ‘‘National Trans12 portation Safety Board, Salaries and Expenses’’ in section 

13 21031 of the Continuing Appropriations Resolution, 2007 

14 (division B of Public Law 109–289, as amended by Public 

15 Law 110–5) include amounts necessary to make lease pay16 ments due in fiscal year 2007 only, on an obligation in17 curred in 2001 under a capital lease. 

18 SEC. 6903. Section 21033 of the Continuing Appro19 priations Resolution, 2007 (division B of Public Law 109–

20 289, as amended by Public Law 110–5) is amended by add21 ing after the second proviso: ‘‘: Provided further, That para22 graph (2) under such heading in Public Law 109–115 (119 

23 Stat. 2441) shall be funded at $149,300,000, but additional 

24 section 8 tenant protection rental assistance costs may be 

25 funded in 2007 by using unobligated balances, notwith-
162

•HR 2206 EAH 

1 standing the purposes for which such amounts were appro2 priated, including recaptures and carryover, remaining 

3 from funds appropriated to the Department of Housing and 

4 Urban Development under this heading, the heading ‘An5 nual Contributions for Assisted Housing’, the heading 

6 ‘Housing Certificate Fund’, and the heading ‘Project-Based 

7 Rental Assistance’ for fiscal year 2006 and prior fiscal 

8 years: Provided further, That paragraph (3) under such 

9 heading in Public Law 109–115 (119 Stat. 2441) shall be 

10 funded at $47,500,000: Provided further, That paragraph 

11 (4) under such heading in Public Law 109–115 (119 Stat. 

12 2441) shall be funded at $5,900,000: Provided further, That 

13 paragraph (5) under such heading in Public Law 109–115 

14 (119 Stat. 2441) shall be funded at $1,281,100,000, of which 

15 $1,251,100,000 shall be allocated for the calendar year 2007 

16 funding cycle on a pro rata basis to public housing agencies 

17 based on the amount public housing agencies were eligible 

18 to receive in calendar year 2006, and of which up to 

19 $30,000,000 shall be available to the Secretary to allocate 

20 to public housing agencies that need additional funds to ad21 minister their section 8 programs, with up to $20,000,000 

22 to be for fees associated with section 8 tenant protection 

23 rental assistance’’. 

24 SEC. 6904. Section 232(b) of the Departments of Vet25 erans Affairs and Housing and Urban Development, and 
163

•HR 2206 EAH 

1 Independent Agencies Appropriations Act, 2001 (Public 

2 Law 106–377) is amended to read as follows: 

3 ‘‘(b) APPLICABILITY.—In the case of any dwelling unit 

4 that, upon the date of the enactment of this Act, is assisted 

5 under a housing assistance payment contract under section 

6 8(o)(13) as in effect before such enactment, or under section 

7 8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 

8 1437f(d)(2)) as in effect before the enactment of the Quality 

9 Housing and Work Responsibility Act of 1998 (title V of 

10 Public Law 105–276), assistance may be renewed or ex11 tended under such section 8(o)(13), as amended by sub12 section (a), provided that the initial contract term and rent 

13 of such renewed or extended assistance shall be determined 

14 pursuant to subparagraphs (F) and (H), and subpara15 graphs (C) and (D) of such section shall not apply to such 

16 extensions or renewals.’’. 

17 TITLE VII—ELIMINATION OF 

18 SCHIP SHORTFALL AND 

19 OTHER HEALTH MATTERS 

20 DEPARTMENT OF HEALTH AND HUMAN 

21 SERVICES 

22 CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE

23 CHILDREN’S HEALTH INSURANCE FUND

24 For an additional amount to provide additional allot25 ments to remaining shortfall States under section 
164

•HR 2206 EAH 

1 2104(h)(4) of the Social Security Act, as inserted by section 

2 6001, such sums as may be necessary, but not to exceed 

3 $650,000,000 for fiscal year 2007, to remain available until 

4 expended. 

5 GENERAL PROVISIONS—THIS TITLE 

6 SEC. 7001. (a) ELIMINATION OF REMAINDER OF

7 SCHIP FUNDING SHORTFALLS, TIERED MATCH, AND

8 OTHER LIMITATION ON EXPENDITURES.—Section 2104(h) 

9 of the Social Security Act (42 U.S.C. 1397dd(h)), as added 

10 by section 201(a) of the National Institutes of Health Re11 form Act of 2006 (Public Law 109–482), is amended—

12 (1) in the heading for paragraph (2), by striking 

13 ‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; 

14 and 

15 (2) by striking paragraph (4) and inserting the 

16 following: 

17 ‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE18 MAINDER OF FISCAL YEAR 2007 FUNDING SHORT19 FALLS.—

20 ‘‘(A) IN GENERAL.—From the amounts pro21 vided in advance in appropriations Acts, the 

22 Secretary shall allot to each remaining shortfall 

23 State described in subparagraph (B) such 

24 amount as the Secretary determines will elimi-
165

•HR 2206 EAH 

1 nate the estimated shortfall described in such 

2 subparagraph for the State for fiscal year 2007. 

3 ‘‘(B) REMAINING SHORTFALL STATE DE4 SCRIBED.—For purposes of subparagraph (A), a 

5 remaining shortfall State is a State with a State 

6 child health plan approved under this title for 

7 which the Secretary estimates, on the basis of the 

8 most recent data available to the Secretary as of 

9 the date of the enactment of this paragraph, that 

10 the projected Federal expenditures under such 

11 plan for the State for fiscal year 2007 will exceed 

12 the sum of—

13 ‘‘(i) the amount of the State’s allot14 ments for each of fiscal years 2005 and 

15 2006 that will not be expended by the end 

16 of fiscal year 2006; 

17 ‘‘(ii) the amount of the State’s allot18 ment for fiscal year 2007; and 

19 ‘‘(iii) the amounts, if any, that are to 

20 be redistributed to the State during fiscal 

21 year 2007 in accordance with paragraphs 

22 (1) and (2).’’. 

23 (b) CONFORMING AMENDMENTS.—Section 2104(h) of 

24 such Act (42 U.S.C. 1397dd(h)) (as so added), is amend25 ed—
166

•HR 2206 EAH 

1 (1) in paragraph (1)(B), by striking ‘‘subject to 

2 paragraph (4)(B) and’’; 

3 (2) in paragraph (2)(B), by striking ‘‘subject to 

4 paragraph (4)(B) and’’; 

5 (3) in paragraph (5)(A), by striking ‘‘and (3)’’ 

6 and inserting ‘‘(3), and (4)’’; and 

7 (4) in paragraph (6)—

8 (A) in the first sentence—

9 (i) by inserting ‘‘or allotted’’ after ‘‘re10 distributed’’; and 

11 (ii) by inserting ‘‘or allotments’’ after 

12 ‘‘redistributions’’; and 

13 (B) by striking ‘‘and (3)’’ and inserting 

14 ‘‘(3), and (4)’’. 

15 SEC. 7002. (a) PROHIBITION.—

16 (1) LIMITATION ON SECRETARIAL AUTHORITY.—

17 Notwithstanding any other provision of law, the Sec18 retary of Health and Human Services shall not, prior 

19 to the date that is 1 year after the date of enactment 

20 of this Act, take any action (through promulgation of 

21 regulation, issuance of regulatory guidance, or other 

22 administrative action) to—

23 (A) finalize or otherwise implement provi24 sions contained in the proposed rule published 

25 on January 18, 2007, on pages 2236 through 
167

•HR 2206 EAH 

1 2248 of volume 72, Federal Register (relating to 

2 parts 433, 447, and 457 of title 42, Code of Fed3 eral Regulations); 

4 (B) promulgate or implement any rule or 

5 provisions similar to the provisions described in 

6 subparagraph (A) pertaining to the Medicaid 

7 program established under title XIX of the Social 

8 Security Act or the State Children’s Health In9 surance Program established under title XXI of 

10 such Act; or 

11 (C) promulgate or implement any rule or 

12 provisions restricting payments for graduate 

13 medical education under the Medicaid program. 

14 (2) CONTINUATION OF OTHER SECRETARIAL AU15 THORITY.—The Secretary of Health and Human 

16 Service shall not be prohibited during the period de17 scribed in paragraph (1) from taking any action 

18 (through promulgation of regulation, issuance of regu19 latory guidance, or other administrative action) to 

20 enforce a provision of law in effect as of the date of 

21 enactment of this Act with respect to the Medicaid 

22 program or the State Children’s Health Insurance 

23 Program, or to promulgate or implement a new rule 

24 or provision during such period with respect to such 

25 programs, other than a rule or provision described in 
168

•HR 2206 EAH 

1 paragraph (1) and subject to the prohibition set forth 

2 in that paragraph. 

3 (b) REQUIREMENT FOR USE OF TAMPER-RESISTANT

4 PRESCRIPTION PADS UNDER THE MEDICAID PROGRAM.—

5 (1) IN GENERAL.—Section 1903(i) of the Social 

6 Security Act (42 U.S.C. 1396b(i)) is amended—

7 (A) by striking ‘‘or’’ at the end of para8 graph (21); 

9 (B) by striking the period at the end of 

10 paragraph (22) and inserting ‘‘; or’’; and 

11 (C) by inserting after paragraph (22) the 

12 following new paragraph: 

13 ‘‘(23) with respect to amounts expended for med14 ical assistance for covered outpatient drugs (as de15 fined in section 1927(k)(2)) for which the prescription 

16 was executed in written (and non-electronic) form un17 less the prescription was executed on a tamper-resist18 ant pad.’’. 

19 (2) EFFECTIVE DATE.—The amendments made 

20 by paragraph (1) shall apply to prescriptions exe21 cuted after September 30, 2007. 

22 (c) EXTENSION OF CERTAIN PHARMACY PLUS WAIV23 ERS.—

24 (1) AUTHORITY TO CONTINUE TO OPERATE WAIV25 ERS.—Notwithstanding any other provision of law, 
169

•HR 2206 EAH 

1 any State that is operating a Pharmacy Plus waiver 

2 described in paragraph (2) which would otherwise ex3 pire on June 30, 2007, may elect to continue to oper4 ate the waiver through December 31, 2009, and if a 

5 State elects to continue to operate such a waiver, the 

6 Secretary of Health and Human Services shall ap7 prove the continuation of the waiver through Decem8 ber 31, 2009. 

9 (2) PHARMACY PLUS WAIVER DESCRIBED.—For 

10 purposes of paragraph (1), a Pharmacy Plus waiver 

11 described in this paragraph is a waiver approved by 

12 the Secretary of Health and Human Services under 

13 the authority of section 1115 of the Social Security 

14 Act (42 U.S.C. 1315) that provides coverage for pre15 scription drugs for individuals who have attained age 

16 65 and whose family income does not exceed 200 per17 cent of the poverty line (as defined in section 

18 2110(c)(5) of such Act (42 U.S.C. 1397jj(c)(5))). 

19 TITLE VIII—FAIR MINIMUM 

20 WAGE AND TAX RELIEF 

21 Subtitle A—Fair Minimum Wage 

22 SEC. 8101. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Fair Minimum 

24 Wage Act of 2007’’. 
170

•HR 2206 EAH 

1 SEC. 8102. MINIMUM WAGE. 

2 (a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 

3 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 

4 to read as follows: 

5 ‘‘(1) except as otherwise provided in this section, 

6 not less than—

7 ‘‘(A) $5.85 an hour, beginning on the 60th 

8 day after the date of enactment of the Fair Min9 imum Wage Act of 2007; 

10 ‘‘(B) $6.55 an hour, beginning 12 months 

11 after that 60th day; and 

12 ‘‘(C) $7.25 an hour, beginning 24 months 

13 after that 60th day;’’. 

14 (b) EFFECTIVE DATE.—The amendment made by sub15 section (a) shall take effect 60 days after the date of enact16 ment of this Act. 

17 SEC. 8103. APPLICABILITY OF MINIMUM WAGE TO AMER18 ICAN SAMOA AND THE COMMONWEALTH OF 

19 THE NORTHERN MARIANA ISLANDS. 

20 (a) IN GENERAL.—Section 6 of the Fair Labor Stand21 ards Act of 1938 (29 U.S.C. 206) shall apply to American 

22 Samoa and the Commonwealth of the Northern Mariana 

23 Islands. 

24 (b) TRANSITION.—Notwithstanding subsection (a)—

25 (1) the minimum wage applicable to the Com26 monwealth of the Northern Mariana Islands under 
171

•HR 2206 EAH 

1 section 6(a)(1) of the Fair Labor Standards Act of 

2 1938 (29 U.S.C. 206(a)(1)) shall be—

3 (A) $3.55 an hour, beginning on the 60th 

4 day after the date of enactment of this Act; and 

5 (B) increased by $0.50 an hour (or such 

6 lesser amount as may be necessary to equal the 

7 minimum wage under section 6(a)(1) of such 

8 Act), beginning 1 year after the date of enact9 ment of this Act and each year thereafter until 

10 the minimum wage applicable to the Common11 wealth of the Northern Mariana Islands under 

12 this paragraph is equal to the minimum wage 

13 set forth in such section; and 

14 (2) the minimum wage applicable to American 

15 Samoa under section 6(a)(1) of the Fair Labor 

16 Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 

17 be—

18 (A) the applicable wage rate in effect for 

19 each industry and classification under section 

20 697 of title 29, Code of Federal Regulations, on 

21 the date of enactment of this Act; 

22 (B) increased by $0.50 an hour, beginning 

23 on the 60th day after the date of enactment of 

24 this Act; and 
172

•HR 2206 EAH 

1 (C) increased by $0.50 an hour (or such 

2 lesser amount as may be necessary to equal the 

3 minimum wage under section 6(a)(1) of such 

4 Act), beginning 1 year after the date of enact5 ment of this Act and each year thereafter until 

6 the minimum wage applicable to American 

7 Samoa under this paragraph is equal to the 

8 minimum wage set forth in such section. 

9 (c) CONFORMING AMENDMENTS.—

10 (1) IN GENERAL.—The Fair Labor Standards 

11 Act of 1938 is amended—

12 (A) by striking sections 5 and 8; and 

13 (B) in section 6(a), by striking paragraph 

14 (3) and redesignating paragraphs (4) and (5) as 

15 paragraphs (3) and (4), respectively. 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall take effect 60 days after the 

18 date of enactment of this Act. 

19 SEC. 8104. STUDY ON PROJECTED IMPACT. 

20 (a) STUDY.—Beginning on the date that is 60 days 

21 after the date of enactment of this Act, the Secretary of 

22 Labor shall, through the Bureau of Labor Statistics, con23 duct a study to—

24 (1) assess the impact of the wage increases re25 quired by this Act through such date; and 
173

•HR 2206 EAH 

1 (2) project the impact of any further wage in2 crease, 

3 on living standards and rates of employment in American 

4 Samoa and the Commonwealth of the Northern Mariana 

5 Islands. 

6 (b) REPORT.—Not later than the date that is 8 months 

7 after the date of enactment of this Act, the Secretary of 

8 Labor shall transmit to Congress a report on the findings 

9 of the study required by subsection (a). 

10 Subtitle B—Small Business Tax 

11 Incentives 

12 SEC. 8201. SHORT TITLE; AMENDMENT OF CODE; TABLE OF 

13 CONTENTS. 

14 (a) SHORT TITLE.—This subtitle may be cited as the 

15 ‘‘Small Business and Work Opportunity Tax Act of 2007’’. 

16 (b) AMENDMENT OF 1986 CODE.—Except as otherwise 

17 expressly provided, whenever in this subtitle an amendment 

18 or repeal is expressed in terms of an amendment to, or re19 peal of, a section or other provision, the reference shall be 

20 considered to be made to a section or other provision of the 

21 Internal Revenue Code of 1986. 

22 (c) TABLE OF CONTENTS.—The table of contents of this 

23 subtitle is as follows:

Sec. 8201. Short title; amendment of Code; table of contents. 
174

•HR 2206 EAH 

PART 1—SMALL BUSINESS TAX RELIEF PROVISIONS

SUBPART A—GENERAL PROVISIONS

Sec. 8211. Extension and modification of work opportunity tax credit. 

Sec. 8212. Extension and increase of expensing for small business. 

Sec. 8213. Determination of credit for certain taxes paid with respect to employee 

cash tips. 

Sec. 8214. Waiver of individual and corporate alternative minimum tax limits 

on work opportunity credit and credit for taxes paid with respect to employee cash tips. 

Sec. 8215. Family business tax simplification. 

SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES

Sec. 8221. Extension of increased expensing for qualified section 179 Gulf Opportunity Zone property. 

Sec. 8222. Extension and expansion of low-income housing credit rules for buildings in the GO Zones. 

Sec. 8223. Special tax-exempt bond financing rule for repairs and reconstructions 

of residences in the GO Zones. 

Sec. 8224. GAO study of practices employed by State and local governments in 

allocating and utilizing tax incentives provided pursuant to the 

Gulf Opportunity Zone Act of 2005. 

SUBPART C—SUBCHAPTER S PROVISIONS

Sec. 8231. Capital gain of S corporation not treated as passive investment income. 

Sec. 8232. Treatment of bank director shares. 

Sec. 8233. Special rule for bank required to change from the reserve method of 

accounting on becoming S corporation. 

Sec. 8234. Treatment of the sale of interest in a qualified subchapter S subsidiary. 

Sec. 8235. Elimination of all earnings and profits attributable to pre-1983 years 

for certain corporations. 

Sec. 8236. Deductibility of interest expense on indebtedness incurred by an electing small business trust to acquire S corporation stock. 

PART 2—REVENUE PROVISIONS

Sec. 8241. Increase in age of children whose unearned income is taxed as if parent’s income. 

Sec. 8242. Suspension of certain penalties and interest. 

Sec. 8243. Modification of collection due process procedures for employment tax 

liabilities. 

Sec. 8244. Permanent extension of IRS user fees. 

Sec. 8245. Increase in penalty for bad checks and money orders. 

Sec. 8246. Understatement of taxpayer liability by return preparers. 

Sec. 8247. Penalty for filing erroneous refund claims. 

Sec. 8248. Time for payment of corporate estimated taxes.
175

•HR 2206 EAH 

1 PART 1—SMALL BUSINESS TAX RELIEF 

2 PROVISIONS 

3 Subpart A—General Provisions 

4 SEC. 8211. EXTENSION AND MODIFICATION OF WORK OP5 PORTUNITY TAX CREDIT. 

6 (a) EXTENSION.—Section 51(c)(4)(B) (relating to ter7 mination) is amended by striking ‘‘December 31, 2007’’ and 

8 inserting ‘‘August 31, 2011’’. 

9 (b) INCREASE IN MAXIMUM AGE FOR DESIGNATED

10 COMMUNITY RESIDENTS.—

11 (1) IN GENERAL.—Paragraph (5) of section 

12 51(d) is amended to read as follows: 

13 ‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—

14 ‘‘(A) IN GENERAL.—The term ‘designated 

15 community resident’ means any individual who 

16 is certified by the designated local agency—

17 ‘‘(i) as having attained age 18 but not 

18 age 40 on the hiring date, and 

19 ‘‘(ii) as having his principal place of 

20 abode within an empowerment zone, enter21 prise community, renewal community, or 

22 rural renewal county. 

23 ‘‘(B) INDIVIDUAL MUST CONTINUE TO RE24 SIDE IN ZONE, COMMUNITY, OR COUNTY.—In the 

25 case of a designated community resident, the 

26 term ‘qualified wages’ shall not include wages 
176

•HR 2206 EAH 

1 paid or incurred for services performed while the 

2 individual’s principal place of abode is outside 

3 an empowerment zone, enterprise community, re4 newal community, or rural renewal county. 

5 ‘‘(C) RURAL RENEWAL COUNTY.—For pur6 poses of this paragraph, the term ‘rural renewal 

7 county’ means any county which—

8 ‘‘(i) is outside a metropolitan statis9 tical area (defined as such by the Office of 

10 Management and Budget), and 

11 ‘‘(ii) during the 5-year periods 1990 

12 through 1994 and 1995 through 1999 had a 

13 net population loss.’’. 

14 (2) CONFORMING AMENDMENT.—Subparagraph 

15 (D) of section 51(d)(1) is amended to read as follows: 

16 ‘‘(D) a designated community resident,’’. 

17 (c) CLARIFICATION OF TREATMENT OF INDIVIDUALS

18 UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) of 

19 section 51(d)(6) (relating to vocational rehabilitation refer20 ral) is amended by striking ‘‘or’’ at the end of clause (i), 

21 by striking the period at the end of clause (ii) and inserting 

22 ‘‘, or’’, and by adding at the end the following new clause: 

23 ‘‘(iii) an individual work plan devel24 oped and implemented by an employment 

25 network pursuant to subsection (g) of sec-
177

•HR 2206 EAH 

1 tion 1148 of the Social Security Act with 

2 respect to which the requirements of such 

3 subsection are met.’’. 

4 (d) TREATMENT OF DISABLED VETERANS UNDER THE

5 WORK OPPORTUNITY TAX CREDIT.—

6 (1) DISABLED VETERANS TREATED AS MEMBERS

7 OF TARGETED GROUP.—

8 (A) IN GENERAL.—Subparagraph (A) of 

9 section 51(d)(3) (relating to qualified veteran) is 

10 amended by striking ‘‘agency as being a member 

11 of a family’’ and all that follows and inserting 

12 ‘‘agency as—

13 ‘‘(i) being a member of a family receiv14 ing assistance under a food stamp program 

15 under the Food Stamp Act of 1977 for at 

16 least a 3-month period ending during the 

17 12-month period ending on the hiring date, 

18 or 

19 ‘‘(ii) entitled to compensation for a 

20 service-connected disability, and—

21 ‘‘(I) having a hiring date which is 

22 not more that 1 year after having been 

23 discharged or released from active duty 

24 in the Armed Forces of the United 

25 States, or 
178

•HR 2206 EAH 

1 ‘‘(II) having aggregate periods of 

2 unemployment during the 1-year pe3 riod ending on the hiring date which 

4 equal or exceed 6 months.’’. 

5 (B) DEFINITIONS.—Paragraph (3) of sec6 tion 51(d) is amended by adding at the end the 

7 following new subparagraph: 

8 ‘‘(C) OTHER DEFINITIONS.—For purposes of 

9 subparagraph (A), the terms ‘compensation’ and 

10 ‘service-connected’ have the meanings given such 

11 terms under section 101 of title 38, United 

12 States Code.’’. 

13 (2) INCREASE IN AMOUNT OF WAGES TAKEN INTO

14 ACCOUNT FOR DISABLED VETERANS.—Paragraph (3) 

15 of section 51(b) is amended—

16 (A) by inserting ‘‘($12,000 per year in the 

17 case of any individual who is a qualified veteran 

18 by reason of subsection (d)(3)(A)(ii))’’ before the 

19 period at the end, and 

20 (B) by striking ‘‘ONLY FIRST $6,000 OF’’ in 

21 the heading and inserting ‘‘LIMITATION ON’’. 

22 (e) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to individuals who begin work for the 

24 employer after the date of the enactment of this Act. 
179

•HR 2206 EAH 

1 SEC. 8212. EXTENSION AND INCREASE OF EXPENSING FOR 

2 SMALL BUSINESS. 

3 (a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), 

4 (c)(2), and (d)(1)(A)(ii) of section 179 (relating to election 

5 to expense certain depreciable business assets) are each 

6 amended by striking ‘‘2010’’ and inserting ‘‘2011’’. 

7 (b) INCREASE IN LIMITATIONS.—Subsection (b) of sec8 tion 179 is amended—

9 (1) by striking ‘‘$100,000 in the case of taxable 

10 years beginning after 2002’’ in paragraph (1) and in11 serting ‘‘$125,000 in the case of taxable years begin12 ning after 2006’’, and 

13 (2) by striking ‘‘$400,000 in the case of taxable 

14 years beginning after 2002’’ in paragraph (2) and in15 serting ‘‘$500,000 in the case of taxable years begin16 ning after 2006’’. 

17 (c) INFLATION ADJUSTMENT.—Subparagraph (A) of 

18 section 179(b)(5) is amended—

19 (1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 

20 (2) by striking ‘‘$100,000 and $400,000’’ and in21 serting ‘‘$125,000 and $500,000’’, and 

22 (3) by striking ‘‘2002’’ in clause (ii) and insert23 ing ‘‘2006’’. 

24 (d) EFFECTIVE DATE.—The amendments made by this 

25 section shall apply to taxable years beginning after Decem26 ber 31, 2006. 
180

•HR 2206 EAH 

1 SEC. 8213. DETERMINATION OF CREDIT FOR CERTAIN 

2 TAXES PAID WITH RESPECT TO EMPLOYEE 

3 CASH TIPS. 

4 (a) IN GENERAL.—Subparagraph (B) of section 

5 45B(b)(1) is amended by inserting ‘‘as in effect on January 

6 1, 2007, and’’ before ‘‘determined without regard to’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to tips received for services performed 

9 after December 31, 2006. 

10 SEC. 8214. WAIVER OF INDIVIDUAL AND CORPORATE ALTER11 NATIVE MINIMUM TAX LIMITS ON WORK OP12 PORTUNITY CREDIT AND CREDIT FOR TAXES 

13 PAID WITH RESPECT TO EMPLOYEE CASH 

14 TIPS. 

15 (a) ALLOWANCE AGAINST ALTERNATIVE MINIMUM

16 TAX.—Subparagraph (B) of section 38(c)(4) is amended by 

17 striking ‘‘and’’ at the end of clause (i), by inserting a 

18 comma at the end of clause (ii), and by adding at the end 

19 the following new clauses: 

20 ‘‘(iii) the credit determined under sec21 tion 45B, and 

22 ‘‘(iv) the credit determined under sec23 tion 51.’’. 

24 (b) EFFECTIVE DATE.—The amendments made by this 

25 section shall apply to credits determined under sections 45B 

26 and 51 of the Internal Revenue Code of 1986 in taxable 
181

•HR 2206 EAH 

1 years beginning after December 31, 2006, and to carrybacks 

2 of such credits. 

3 SEC. 8215. FAMILY BUSINESS TAX SIMPLIFICATION. 

4 (a) IN GENERAL.—Section 761 (defining terms for 

5 purposes of partnerships) is amended by redesignating sub6 section (f) as subsection (g) and by inserting after sub7 section (e) the following new subsection: 

8 ‘‘(f) QUALIFIED JOINT VENTURE.—

9 ‘‘(1) IN GENERAL.—In the case of a qualified 

10 joint venture conducted by a husband and wife who 

11 file a joint return for the taxable year, for purposes 

12 of this title—

13 ‘‘(A) such joint venture shall not be treated 

14 as a partnership, 

15 ‘‘(B) all items of income, gain, loss, deduc16 tion, and credit shall be divided between the 

17 spouses in accordance with their respective inter18 ests in the venture, and 

19 ‘‘(C) each spouse shall take into account 

20 such spouse’s respective share of such items as if 

21 they were attributable to a trade or business con22 ducted by such spouse as a sole proprietor. 

23 ‘‘(2) QUALIFIED JOINT VENTURE.—For purposes 

24 of paragraph (1), the term ‘qualified joint venture’ 
182

•HR 2206 EAH 

1 means any joint venture involving the conduct of a 

2 trade or business if—

3 ‘‘(A) the only members of such joint venture 

4 are a husband and wife, 

5 ‘‘(B) both spouses materially participate 

6 (within the meaning of section 469(h) without 

7 regard to paragraph (5) thereof) in such trade or 

8 business, and 

9 ‘‘(C) both spouses elect the application of 

10 this subsection.’’. 

11 (b) NET EARNINGS FROM SELF-EMPLOYMENT.—

12 (1) Subsection (a) of section 1402 (defining net 

13 earnings from self-employment) is amended by strik14 ing ‘‘, and’’ at the end of paragraph (15) and insert15 ing a semicolon, by striking the period at the end of 

16 paragraph (16) and inserting ‘‘; and’’, and by insert17 ing after paragraph (16) the following new para18 graph: 

19 ‘‘(17) notwithstanding the preceding provisions 

20 of this subsection, each spouse’s share of income or 

21 loss from a qualified joint venture shall be taken into 

22 account as provided in section 761(f) in determining 

23 net earnings from self-employment of such spouse.’’. 

24 (2) Subsection (a) of section 211 of the Social 

25 Security Act (defining net earnings from self-employ-
183

•HR 2206 EAH 

1 ment) is amended by striking ‘‘and’’ at the end of 

2 paragraph (14), by striking the period at the end of 

3 paragraph (15) and inserting ‘‘; and’’, and by insert4 ing after paragraph (15) the following new para5 graph: 

6 ‘‘(16) Notwithstanding the preceding provisions 

7 of this subsection, each spouse’s share of income or 

8 loss from a qualified joint venture shall be taken into 

9 account as provided in section 761(f) of the Internal 

10 Revenue Code of 1986 in determining net earnings 

11 from self-employment of such spouse.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by this 

13 section shall apply to taxable years beginning after Decem14 ber 31, 2006. 

15 Subpart B—Gulf Opportunity Zone Tax Incentives 

16 SEC. 8221. EXTENSION OF INCREASED EXPENSING FOR 

17 QUALIFIED SECTION 179 GULF OPPORTUNITY 

18 ZONE PROPERTY. 

19 Paragraph (2) of section 1400N(e) (relating to quali20 fied section 179 Gulf Opportunity Zone property) is 

21 amended—

22 (1) by striking ‘‘this subsection, the term’’ and 

23 inserting: 

24 ‘‘this subsection—

25 ‘‘(A) IN GENERAL.—The term’’, and 
184

•HR 2206 EAH 

1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(B) EXTENSION FOR CERTAIN PROP4 ERTY.—In the case of property substantially all 

5 of the use of which is in one or more specified 

6 portions of the GO Zone (as defined by sub7 section (d)(6)), such term shall include section 

8 179 property (as so defined) which is described 

9 in subsection (d)(2), determined—

10 ‘‘(i) without regard to subsection 

11 (d)(6), and 

12 ‘‘(ii) by substituting ‘2008’ for ‘2007’ 

13 in subparagraph (A)(v) thereof.’’. 

14 SEC. 8222. EXTENSION AND EXPANSION OF LOW-INCOME 

15 HOUSING CREDIT RULES FOR BUILDINGS IN 

16 THE GO ZONES. 

17 (a) TIME FOR MAKING LOW-INCOME HOUSING CREDIT

18 ALLOCATIONS.—Subsection (c) of section 1400N (relating 

19 to low-income housing credit) is amended by redesignating 

20 paragraph (5) as paragraph (6) and by inserting after 

21 paragraph (4) the following new paragraph: 

22 ‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING

23 CREDIT ALLOCATIONS.—Section 42(h)(1)(B) shall not 

24 apply to an allocation of housing credit dollar 

25 amount to a building located in the Gulf Opportunity 
185

•HR 2206 EAH 

1 Zone, the Rita GO Zone, or the Wilma GO Zone, if 

2 such allocation is made in 2006, 2007, or 2008, and 

3 such building is placed in service before January 1, 

4 2011.’’. 

5 (b) EXTENSION OF PERIOD FOR TREATING GO ZONES

6 AS DIFFICULT DEVELOPMENT AREAS.—

7 (1) IN GENERAL.—Subparagraph (A) of section 

8 1400N(c)(3) is amended by striking ‘‘2006, 2007, or 

9 2008’’ and inserting ‘‘the period beginning on Janu10 ary 1, 2006, and ending on December 31, 2010’’. 

11 (2) CONFORMING AMENDMENT.—Clause (ii) of 

12 section 1400N(c)(3)(B) is amended by striking ‘‘such 

13 period’’ and inserting ‘‘the period described in sub14 paragraph (A)’’. 

15 (c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT

16 TAKEN INTO ACCOUNT IN DETERMINING IF BUILDINGS ARE

17 FEDERALLY SUBSIDIZED.—Subsection (c) of section 1400N 

18 (relating to low-income housing credit), as amended by this 

19 Act, is amended by redesignating paragraph (6) as para20 graph (7) and by inserting after paragraph (5) the fol21 lowing new paragraph: 

22 ‘‘(6) COMMUNITY DEVELOPMENT BLOCK GRANTS

23 NOT TAKEN INTO ACCOUNT IN DETERMINING IF

24 BUILDINGS ARE FEDERALLY SUBSIDIZED.—For pur25 pose of applying section 42(i)(2)(D) to any building 
186

•HR 2206 EAH 

1 which is placed in service in the Gulf Opportunity 

2 Zone, the Rita GO Zone, or the Wilma GO Zone dur3 ing the period beginning on January 1, 2006, and 

4 ending on December 31, 2010, a loan shall not be 

5 treated as a below market Federal loan solely by rea6 son of any assistance provided under section 106, 

7 107, or 108 of the Housing and Community Develop8 ment Act of 1974 by reason of section 122 of such Act 

9 or any provision of the Department of Defense Appro10 priations Act, 2006, or the Emergency Supplemental 

11 Appropriations Act for Defense, the Global War on 

12 Terror, and Hurricane Recovery, 2006.’’. 

13 SEC. 8223. SPECIAL TAX-EXEMPT BOND FINANCING RULE 

14 FOR REPAIRS AND RECONSTRUCTIONS OF 

15 RESIDENCES IN THE GO ZONES. 

16 Subsection (a) of section 1400N (relating to tax-exempt 

17 bond financing) is amended by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(7) SPECIAL RULE FOR REPAIRS AND RECON20 STRUCTIONS.—

21 ‘‘(A) IN GENERAL.—For purposes of section 

22 143 and this subsection, any qualified GO Zone 

23 repair or reconstruction shall be treated as a 

24 qualified rehabilitation. 
187

•HR 2206 EAH 

1 ‘‘(B) QUALIFIED GO ZONE REPAIR OR RE2 CONSTRUCTION.—For purposes of subparagraph 

3 (A), the term ‘qualified GO Zone repair or re4 construction’ means any repair of damage 

5 caused by Hurricane Katrina, Hurricane Rita, 

6 or Hurricane Wilma to a building located in the 

7 Gulf Opportunity Zone, the Rita GO Zone, or 

8 the Wilma GO Zone (or reconstruction of such 

9 building in the case of damage constituting de10 struction) if the expenditures for such repair or 

11 reconstruction are 25 percent or more of the 

12 mortgagor’s adjusted basis in the residence. For 

13 purposes of the preceding sentence, the mortga14 gor’s adjusted basis shall be determined as of the 

15 completion of the repair or reconstruction or, if 

16 later, the date on which the mortgagor acquires 

17 the residence. 

18 ‘‘(C) TERMINATION.—This paragraph shall 

19 apply only to owner-financing provided after the 

20 date of the enactment of this paragraph and be21 fore January 1, 2011.’’. 
188

•HR 2206 EAH 

1 SEC. 8224. GAO STUDY OF PRACTICES EMPLOYED BY STATE 

2 AND LOCAL GOVERNMENTS IN ALLOCATING 

3 AND UTILIZING TAX INCENTIVES PROVIDED 

4 PURSUANT TO THE GULF OPPORTUNITY 

5 ZONE ACT OF 2005. 

6 (a) IN GENERAL.—The Comptroller General of the 

7 United States shall conduct a study of the practices em8 ployed by State and local governments, and subdivisions 

9 thereof, in allocating and utilizing tax incentives provided 

10 pursuant to the Gulf Opportunity Zone Act of 2005 and 

11 this Act. 

12 (b) SUBMISSION OF REPORT.—Not later than one year 

13 after the date of the enactment of this Act, the Comptroller 

14 General shall submit a report on the findings of the study 

15 conducted under subsection (a) and shall include therein 

16 recommendations (if any) relating to such findings. The re17 port shall be submitted to the Committee on Ways and 

18 Means of the House of Representatives and the Committee 

19 on Finance of the Senate. 

20 (c) CONGRESSIONAL HEARINGS.—In the case that the 

21 report submitted under this section includes findings of sig22 nificant fraud, waste or abuse, each Committee specified in 

23 subsection (b) shall, within 60 days after the date the report 

24 is submitted under subsection (b), hold a public hearing to 

25 review such findings. 
189

•HR 2206 EAH 

1 Subpart C—Subchapter S Provisions 

2 SEC. 8231. CAPITAL GAIN OF S CORPORATION NOT TREAT3 ED AS PASSIVE INVESTMENT INCOME. 

4 (a) IN GENERAL.—Section 1362(d)(3) is amended by 

5 striking subparagraphs (B), (C), (D), (E), and (F) and in6 serting the following new subparagraphs: 

7 ‘‘(B) GROSS RECEIPTS FROM THE SALES OF

8 CERTAIN ASSETS.—For purposes of this para9 graph—

10 ‘‘(i) in the case of dispositions of cap11 ital assets (other than stock and securities), 

12 gross receipts from such dispositions shall be 

13 taken into account only to the extent of the 

14 capital gain net income therefrom, and 

15 ‘‘(ii) in the case of sales or exchanges 

16 of stock or securities, gross receipts shall be 

17 taken into account only to the extent of the 

18 gains therefrom. 

19 ‘‘(C) PASSIVE INVESTMENT INCOME DE20 FINED.—

21 ‘‘(i) IN GENERAL.—Except as otherwise 

22 provided in this subparagraph, the term 

23 ‘passive investment income’ means gross re24 ceipts derived from royalties, rents, divi25 dends, interest, and annuities. 
190

•HR 2206 EAH 

1 ‘‘(ii) EXCEPTION FOR INTEREST ON

2 NOTES FROM SALES OF INVENTORY.—The 

3 term ‘passive investment income’ shall not 

4 include interest on any obligation acquired 

5 in the ordinary course of the corporation’s 

6 trade or business from its sale of property 

7 described in section 1221(a)(1). 

8 ‘‘(iii) TREATMENT OF CERTAIN LEND9 ING OR FINANCE COMPANIES.—If the S cor10 poration meets the requirements of section 

11 542(c)(6) for the taxable year, the term 

12 ‘passive investment income’ shall not in13 clude gross receipts for the taxable year 

14 which are derived directly from the active 

15 and regular conduct of a lending or finance 

16 business (as defined in section 542(d)(1)). 

17 ‘‘(iv) TREATMENT OF CERTAIN DIVI18 DENDS.—If an S corporation holds stock in 

19 a C corporation meeting the requirements of 

20 section 1504(a)(2), the term ‘passive invest21 ment income’ shall not include dividends 

22 from such C corporation to the extent such 

23 dividends are attributable to the earnings 

24 and profits of such C corporation derived 
191

•HR 2206 EAH 

1 from the active conduct of a trade or busi2 ness. 

3 ‘‘(v) EXCEPTION FOR BANKS, ETC.—In 

4 the case of a bank (as defined in section 

5 581) or a depository institution holding 

6 company (as defined in section 3(w)(1) of 

7 the Federal Deposit Insurance Act (12 

8 U.S.C. 1813(w)(1)), the term ‘passive in9 vestment income’ shall not include—

10 ‘‘(I) interest income earned by 

11 such bank or company, or 

12 ‘‘(II) dividends on assets required 

13 to be held by such bank or company, 

14 including stock in the Federal Reserve 

15 Bank, the Federal Home Loan Bank, 

16 or the Federal Agricultural Mortgage 

17 Bank or participation certificates 

18 issued by a Federal Intermediate Cred19 it Bank.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to taxable years beginning after the date 

22 of the enactment of this Act. 
192

•HR 2206 EAH 

1 SEC. 8232. TREATMENT OF BANK DIRECTOR SHARES. 

2 (a) IN GENERAL.—Section 1361 (defining S corpora3 tion) is amended by adding at the end the following new 

4 subsection: 

5 ‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—

6 ‘‘(1) IN GENERAL.—Restricted bank director 

7 stock shall not be taken into account as outstanding 

8 stock of the S corporation in applying this subchapter 

9 (other than section 1368(f)). 

10 ‘‘(2) RESTRICTED BANK DIRECTOR STOCK.—For 

11 purposes of this subsection, the term ‘restricted bank 

12 director stock’ means stock in a bank (as defined in 

13 section 581) or a depository institution holding com14 pany (as defined in section 3(w)(1) of the Federal De15 posit Insurance Act (12 U.S.C. 1813(w)(1)), if such 

16 stock—

17 ‘‘(A) is required to be held by an individual 

18 under applicable Federal or State law in order 

19 to permit such individual to serve as a director, 

20 and 

21 ‘‘(B) is subject to an agreement with such 

22 bank or company (or a corporation which con23 trols (within the meaning of section 368(c)) such 

24 bank or company) pursuant to which the holder 

25 is required to sell back such stock (at the same 
193

•HR 2206 EAH 

1 price as the individual acquired such stock) upon 

2 ceasing to hold the office of director. 

3 ‘‘(3) CROSS REFERENCE.—

‘‘For treatment of certain distributions with respect to restricted bank director 

stock, see section 1368(f).’’.

4 (b) DISTRIBUTIONS.—Section 1368 (relating to dis5 tributions) is amended by adding at the end the following 

6 new subsection: 

7 ‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—If a di8 rector receives a distribution (not in part or full payment 

9 in exchange for stock) from an S corporation with respect 

10 to any restricted bank director stock (as defined in section 

11 1361(f)), the amount of such distribution—

12 ‘‘(1) shall be includible in gross income of the di13 rector, and 

14 ‘‘(2) shall be deductible by the corporation for the 

15 taxable year of such corporation in which or with 

16 which ends the taxable year in which such amount in 

17 included in the gross income of the director.’’. 

18 (c) EFFECTIVE DATES.—

19 (1) IN GENERAL.—The amendments made by 

20 this section shall apply to taxable years beginning 

21 after December 31, 2006. 

22 (2) SPECIAL RULE FOR TREATMENT AS SECOND

23 CLASS OF STOCK.—In the case of any taxable year be24 ginning after December 31, 1996, restricted bank di-
194

•HR 2206 EAH 

1 rector stock (as defined in section 1361(f) of the Inter2 nal Revenue Code of 1986, as added by this section) 

3 shall not be taken into account in determining wheth4 er an S corporation has more than 1 class of stock. 

5 SEC. 8233. SPECIAL RULE FOR BANK REQUIRED TO CHANGE 

6 FROM THE RESERVE METHOD OF ACCOUNT7 ING ON BECOMING S CORPORATION. 

8 (a) IN GENERAL.—Section 1361, as amended by this 

9 Act, is amended by adding at the end the following new 

10 subsection: 

11 ‘‘(g) SPECIAL RULE FOR BANK REQUIRED TO CHANGE

12 FROM THE RESERVE METHOD OF ACCOUNTING ON BECOM13 ING S CORPORATION.—In the case of a bank which changes 

14 from the reserve method of accounting for bad debts de15 scribed in section 585 or 593 for its first taxable year for 

16 which an election under section 1362(a) is in effect, the 

17 bank may elect to take into account any adjustments under 

18 section 481 by reason of such change for the taxable year 

19 immediately preceding such first taxable year.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to taxable years beginning after Decem22 ber 31, 2006. 
195

•HR 2206 EAH 

1 SEC. 8234. TREATMENT OF THE SALE OF INTEREST IN A 

2 QUALIFIED SUBCHAPTER S SUBSIDIARY. 

3 (a) IN GENERAL.—Subparagraph (C) of section 

4 1361(b)(3) (relating to treatment of terminations of quali5 fied subchapter S subsidiary status) is amended—

6 (1) by striking ‘‘For purposes of this title,’’ and 

7 inserting the following: 

8 ‘‘(i) IN GENERAL.—For purposes of 

9 this title,’’, and 

10 (2) by inserting at the end the following new 

11 clause: 

12 ‘‘(ii) TERMINATION BY REASON OF

13 SALE OF STOCK.—If the failure to meet the 

14 requirements of subparagraph (B) is by rea15 son of the sale of stock of a corporation 

16 which is a qualified subchapter S sub17 sidiary, the sale of such stock shall be treat18 ed as if—

19 ‘‘(I) the sale were a sale of an un20 divided interest in the assets of such 

21 corporation (based on the percentage of 

22 the corporation’s stock sold), and 

23 ‘‘(II) the sale were followed by an 

24 acquisition by such corporation of all 

25 of its assets (and the assumption by 

26 such corporation of all of its liabilities) 
196

•HR 2206 EAH 

1 in a transaction to which section 351 

2 applies.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to taxable years beginning after Decem5 ber 31, 2006. 

6 SEC. 8235. ELIMINATION OF ALL EARNINGS AND PROFITS 

7 ATTRIBUTABLE TO PRE-1983 YEARS FOR CER8 TAIN CORPORATIONS. 

9 In the case of a corporation which is—

10 (1) described in section 1311(a)(1) of the Small 

11 Business Job Protection Act of 1996, and 

12 (2) not described in section 1311(a)(2) of such 

13 Act, 

14 the amount of such corporation’s accumulated earnings and 

15 profits (for the first taxable year beginning after the date 

16 of the enactment of this Act) shall be reduced by an amount 

17 equal to the portion (if any) of such accumulated earnings 

18 and profits which were accumulated in any taxable year 

19 beginning before January 1, 1983, for which such corpora20 tion was an electing small business corporation under sub21 chapter S of the Internal Revenue Code of 1986. 
197

•HR 2206 EAH 

1 SEC. 8236. DEDUCTIBILITY OF INTEREST EXPENSE ON IN2 DEBTEDNESS INCURRED BY AN ELECTING 

3 SMALL BUSINESS TRUST TO ACQUIRE S COR4 PORATION STOCK. 

5 (a) IN GENERAL.—Subparagraph (C) of section 

6 641(c)(2) (relating to modifications) is amended by insert7 ing after clause (iii) the following new clause: 

8 ‘‘(iv) Any interest expense paid or ac9 crued on indebtedness incurred to acquire 

10 stock in an S corporation.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by this 

12 section shall apply to taxable years beginning after Decem13 ber 31, 2006. 

14 PART 2—REVENUE PROVISIONS 

15 SEC. 8241. INCREASE IN AGE OF CHILDREN WHOSE UN16 EARNED INCOME IS TAXED AS IF PARENT’S 

17 INCOME. 

18 (a) IN GENERAL.—Subparagraph (A) of section 

19 1(g)(2) (relating to child to whom subsection applies) is 

20 amended to read as follows: 

21 ‘‘(A) such child—

22 ‘‘(i) has not attained age 18 before the 

23 close of the taxable year, or 

24 ‘‘(ii)(I) has attained age 18 before the 

25 close of the taxable year and meets the age 

26 requirements of section 152(c)(3) (deter-
198

•HR 2206 EAH 

1 mined without regard to subparagraph (B) 

2 thereof), and 

3 ‘‘(II) whose earned income (as defined 

4 in section 911(d)(2)) for such taxable year 

5 does not exceed one-half of the amount of the 

6 individual’s support (within the meaning of 

7 section 152(c)(1)(D) after the application of 

8 section 152(f)(5) (without regard to sub9 paragraph (A) thereof)) for such taxable 

10 year,’’. 

11 (b) CONFORMING AMENDMENT.—Subsection (g) of sec12 tion 1 is amended by striking ‘‘MINOR’’ in the heading 

13 thereof. 

14 (c) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to taxable years beginning after the date 

16 of the enactment of this Act. 

17 SEC. 8242. SUSPENSION OF CERTAIN PENALTIES AND IN18 TEREST. 

19 (a) IN GENERAL.—Paragraphs (1)(A) and (3)(A) of 

20 section 6404(g) are each amended by striking ‘‘18-month 

21 period’’ and inserting ‘‘36-month period’’. 

22 (b) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to notices provided by the Secretary of 

24 the Treasury, or his delegate, after the date which is 6 

25 months after the date of the enactment of this Act. 
199

•HR 2206 EAH 

1 SEC. 8243. MODIFICATION OF COLLECTION DUE PROCESS 

2 PROCEDURES FOR EMPLOYMENT TAX LIABIL3 ITIES. 

4 (a) IN GENERAL.—Section 6330(f) (relating to jeop5 ardy and State refund collection) is amended—

6 (1) by striking ‘‘; or’’ at the end of paragraph 

7 (1) and inserting a comma, 

8 (2) by adding ‘‘or’’ at the end of paragraph (2), 

9 and 

10 (3) by inserting after paragraph (2) the fol11 lowing new paragraph: 

12 ‘‘(3) the Secretary has served a disqualified em13 ployment tax levy,’’. 

14 (b) DISQUALIFIED EMPLOYMENT TAX LEVY.—Section 

15 6330 of such Code (relating to notice and opportunity for 

16 hearing before levy) is amended by adding at the end the 

17 following new subsection: 

18 ‘‘(h) DISQUALIFIED EMPLOYMENT TAX LEVY.—For 

19 purposes of subsection (f), a disqualified employment tax 

20 levy is any levy in connection with the collection of employ21 ment taxes for any taxable period if the person subject to 

22 the levy (or any predecessor thereof) requested a hearing 

23 under this section with respect to unpaid employment taxes 

24 arising in the most recent 2-year period before the begin25 ning of the taxable period with respect to which the levy 

26 is served. For purposes of the preceding sentence, the term 
200

•HR 2206 EAH 

1 ‘employment taxes’ means any taxes under chapter 21, 22, 

2 23, or 24.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to levies served on or after the date that 

5 is 120 days after the date of the enactment of this Act. 

6 SEC. 8244. PERMANENT EXTENSION OF IRS USER FEES. 

7 Section 7528 (relating to Internal Revenue Service 

8 user fees) is amended by striking subsection (c). 

9 SEC. 8245. INCREASE IN PENALTY FOR BAD CHECKS AND 

10 MONEY ORDERS. 

11 (a) IN GENERAL.—Section 6657 (relating to bad 

12 checks) is amended—

13 (1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, 

14 and 

15 (2) by striking ‘‘$15’’ and inserting ‘‘$25’’. 

16 (b) EFFECTIVE DATE.—The amendments made by this 

17 section apply to checks or money orders received after the 

18 date of the enactment of this Act. 

19 SEC. 8246. UNDERSTATEMENT OF TAXPAYER LIABILITY BY 

20 RETURN PREPARERS. 

21 (a) APPLICATION OF RETURN PREPARER PENALTIES

22 TO ALL TAX RETURNS.—

23 (1) DEFINITION OF TAX RETURN PREPARER.—

24 Paragraph (36) of section 7701(a) (relating to income 

25 tax preparer) is amended—
201

•HR 2206 EAH 

1 (A) by striking ‘‘income’’ each place it ap2 pears in the heading and the text, and 

3 (B) in subparagraph (A), by striking ‘‘sub4 title A’’ each place it appears and inserting ‘‘this 

5 title’’. 

6 (2) CONFORMING AMENDMENTS.—

7 (A)(i) Section 6060 is amended by striking 

8 ‘‘INCOME TAX RETURN PREPARERS’’ in the 

9 heading and inserting ‘‘TAX RETURN PRE10 PARERS’’. 

11 (ii) Section 6060(a) is amended—

12 (I) by striking ‘‘an income tax return 

13 preparer’’ each place it appears and insert14 ing ‘‘a tax return preparer’’, 

15 (II) by striking ‘‘each income tax re16 turn preparer’’ and inserting ‘‘each tax re17 turn preparer’’, and 

18 (III) by striking ‘‘another income tax 

19 return preparer’’ and inserting ‘‘another 

20 tax return preparer’’. 

21 (iii) The item relating to section 6060 in 

22 the table of sections for subpart F of part III of 

23 subchapter A of chapter 61 is amended by strik24 ing ‘‘income tax return preparers’’ and inserting 

25 ‘‘tax return preparers’’. 
202

•HR 2206 EAH 

1 (iv) Subpart F of part III of subchapter A 

2 of chapter 61 is amended by striking ‘‘Income 

3 Tax Return Preparers’’ in the heading and 

4 inserting ‘‘Tax Return Preparers’’. 

5 (v) The item relating to subpart F in the 

6 table of subparts for part III of subchapter A of 

7 chapter 61 is amended by striking ‘‘income tax 

8 return preparers’’ and inserting ‘‘tax return pre9 parers’’. 

10 (B) Section 6103(k)(5) is amended—

11 (i) by striking ‘‘income tax return pre12 parer’’ each place it appears and inserting 

13 ‘‘tax return preparer’’, and 

14 (ii) by striking ‘‘income tax return 

15 preparers’’ each place it appears and insert16 ing ‘‘tax return preparers’’. 

17 (C)(i) Section 6107 is amended—

18 (I) by striking ‘‘INCOME TAX RE19 TURN PREPARER’’ in the heading and in20 serting ‘‘TAX RETURN PREPARER’’, 

21 (II) by striking ‘‘an income tax return 

22 preparer’’ each place it appears in sub23 sections (a) and (b) and inserting ‘‘a tax re24 turn preparer’’, 
203

•HR 2206 EAH 

1 (III) by striking ‘‘INCOME TAX RE2 TURN PREPARER’’ in the heading for sub3 section (b) and inserting ‘‘TAX RETURN

4 PREPARER’’, and 

5 (IV) in subsection (c), by striking ‘‘in6 come tax return preparers’’ and inserting 

7 ‘‘tax return preparers’’. 

8 (ii) The item relating to section 6107 in the 

9 table of sections for subchapter B of chapter 61 

10 is amended by striking ‘‘Income tax return pre11 parer’’ and inserting ‘‘Tax return preparer’’. 

12 (D) Section 6109(a)(4) is amended—

13 (i) by striking ‘‘an income tax return 

14 preparer’’ and inserting ‘‘a tax return pre15 parer’’, and 

16 (ii) by striking ‘‘INCOME RETURN PRE17 PARER’’ in the heading and inserting ‘‘TAX

18 RETURN PREPARER’’. 

19 (E) Section 6503(k)(4) is amended by strik20 ing ‘‘Income tax return preparers’’ and inserting 

21 ‘‘Tax return preparers’’. 

22 (F)(i) Section 6694 is amended—

23 (I) by striking ‘‘INCOME TAX RE24 TURN PREPARER’’ in the heading and in25 serting ‘‘TAX RETURN PREPARER’’, 
204

•HR 2206 EAH 

1 (II) by striking ‘‘an income tax return 

2 preparer’’ each place it appears and insert3 ing ‘‘a tax return preparer’’, 

4 (III) in subsection (c)(2), by striking 

5 ‘‘the income tax return preparer’’ and in6 serting ‘‘the tax return preparer’’, 

7 (IV) in subsection (e), by striking 

8 ‘‘subtitle A’’ and inserting ‘‘this title’’, and 

9 (V) in subsection (f), by striking ‘‘in10 come tax return preparer’’ and inserting 

11 ‘‘tax return preparer’’. 

12 (ii) The item relating to section 6694 in the 

13 table of sections for part I of subchapter B of 

14 chapter 68 is amended by striking ‘‘income tax 

15 return preparer’’ and inserting ‘‘tax return pre16 parer’’. 

17 (G)(i) Section 6695 is amended—

18 (I) by striking ‘‘INCOME’’ in the head19 ing, and 

20 (II) by striking ‘‘an income tax return 

21 preparer’’ each place it appears and insert22 ing ‘‘a tax return preparer’’. 

23 (ii) Section 6695(f) is amended—

24 (I) by striking ‘‘subtitle A’’ and insert25 ing ‘‘this title’’, and 
205

•HR 2206 EAH 

1 (II) by striking ‘‘the income tax return 

2 preparer’’ and inserting ‘‘the tax return 

3 preparer’’. 

4 (iii) The item relating to section 6695 in 

5 the table of sections for part I of subchapter B 

6 of chapter 68 is amended by striking ‘‘income’’. 

7 (H) Section 6696(e) is amended by striking 

8 ‘‘subtitle A’’ each place it appears and inserting 

9 ‘‘this title’’. 

10 (I)(i) Section 7407 is amended—

11 (I) by striking ‘‘INCOME TAX RE12 TURN PREPARERS’’ in the heading and 

13 inserting ‘‘TAX RETURN PREPARERS’’, 

14 (II) by striking ‘‘an income tax return 

15 preparer’’ each place it appears and insert16 ing ‘‘a tax return preparer’’, 

17 (III) by striking ‘‘income tax pre18 parer’’ both places it appears in subsection 

19 (a) and inserting ‘‘tax return preparer’’, 

20 and 

21 (IV) by striking ‘‘income tax return’’ 

22 in subsection (a) and inserting ‘‘tax re23 turn’’. 

24 (ii) The item relating to section 7407 in the 

25 table of sections for subchapter A of chapter 76 
206

•HR 2206 EAH 

1 is amended by striking ‘‘income tax return pre2 parers’’ and inserting ‘‘tax return preparers’’. 

3 (J)(i) Section 7427 is amended—

4 (I) by striking ‘‘INCOME TAX RE5 TURN PREPARERS’’ in the heading and 

6 inserting ‘‘TAX RETURN PREPARERS’’, 

7 and 

8 (II) by striking ‘‘an income tax return 

9 preparer’’ and inserting ‘‘a tax return pre10 parer’’. 

11 (ii) The item relating to section 7427 in the 

12 table of sections for subchapter B of chapter 76 

13 is amended to read as follows:

‘‘Sec. 7427. Tax return preparers.’’.

14 (b) MODIFICATION OF PENALTY FOR UNDERSTATE15 MENT OF TAXPAYER’S LIABILITY BY TAX RETURN PRE16 PARER.—Subsections (a) and (b) of section 6694 are 

17 amended to read as follows: 

18 ‘‘(a) UNDERSTATEMENT DUE TO UNREASONABLE PO19 SITIONS.—

20 ‘‘(1) IN GENERAL.—Any tax return preparer 

21 who prepares any return or claim for refund with re22 spect to which any part of an understatement of li23 ability is due to a position described in paragraph 

24 (2) shall pay a penalty with respect to each such re25 turn or claim in an amount equal to the greater of—
207

•HR 2206 EAH 

1 ‘‘(A) $1,000, or 

2 ‘‘(B) 50 percent of the income derived (or to 

3 be derived) by the tax return preparer with re4 spect to the return or claim. 

5 ‘‘(2) UNREASONABLE POSITION.—A position is 

6 described in this paragraph if—

7 ‘‘(A) the tax return preparer knew (or rea8 sonably should have known) of the position, 

9 ‘‘(B) there was not a reasonable belief that 

10 the position would more likely than not be sus11 tained on its merits, and 

12 ‘‘(C)(i) the position was not disclosed as 

13 provided in section 6662(d)(2)(B)(ii), or 

14 ‘‘(ii) there was no reasonable basis for the 

15 position. 

16 ‘‘(3) REASONABLE CAUSE EXCEPTION.—No pen17 alty shall be imposed under this subsection if it is 

18 shown that there is reasonable cause for the under19 statement and the tax return preparer acted in good 

20 faith. 

21 ‘‘(b) UNDERSTATEMENT DUE TO WILLFUL OR RECK22 LESS CONDUCT.—

23 ‘‘(1) IN GENERAL.—Any tax return preparer 

24 who prepares any return or claim for refund with re25 spect to which any part of an understatement of li-
208

•HR 2206 EAH 

1 ability is due to a conduct described in paragraph (2) 

2 shall pay a penalty with respect to each such return 

3 or claim in an amount equal to the greater of—

4 ‘‘(A) $5,000, or 

5 ‘‘(B) 50 percent of the income derived (or to 

6 be derived) by the tax return preparer with re7 spect to the return or claim. 

8 ‘‘(2) WILLFUL OR RECKLESS CONDUCT.—Con9 duct described in this paragraph is conduct by the tax 

10 return preparer which is—

11 ‘‘(A) a willful attempt in any manner to 

12 understate the liability for tax on the return or 

13 claim, or 

14 ‘‘(B) a reckless or intentional disregard of 

15 rules or regulations. 

16 ‘‘(3) REDUCTION IN PENALTY.—The amount of 

17 any penalty payable by any person by reason of this 

18 subsection for any return or claim for refund shall be 

19 reduced by the amount of the penalty paid by such 

20 person by reason of subsection (a).’’. 

21 (c) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to returns prepared after the date of the 

23 enactment of this Act. 
209

•HR 2206 EAH 

1 SEC. 8247. PENALTY FOR FILING ERRONEOUS REFUND 

2 CLAIMS. 

3 (a) IN GENERAL.—Part I of subchapter B of chapter 

4 68 (relating to assessable penalties) is amended by inserting 

5 after section 6675 the following new section: 

6 ‘‘SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT. 

7 ‘‘(a) CIVIL PENALTY.—If a claim for refund or credit 

8 with respect to income tax (other than a claim for a refund 

9 or credit relating to the earned income credit under section 

10 32) is made for an excessive amount, unless it is shown 

11 that the claim for such excessive amount has a reasonable 

12 basis, the person making such claim shall be liable for a 

13 penalty in an amount equal to 20 percent of the excessive 

14 amount. 

15 ‘‘(b) EXCESSIVE AMOUNT.—For purposes of this sec16 tion, the term ‘excessive amount’ means in the case of any 

17 person the amount by which the amount of the claim for 

18 refund or credit for any taxable year exceeds the amount 

19 of such claim allowable under this title for such taxable 

20 year. 

21 ‘‘(c) COORDINATION WITH OTHER PENALTIES.—This 

22 section shall not apply to any portion of the excessive 

23 amount of a claim for refund or credit which is subject to 

24 a penalty imposed under part II of subchapter A of chapter 

25 68.’’. 
210

•HR 2206 EAH 

1 (b) CONFORMING AMENDMENT.—The table of sections 

2 for part I of subchapter B of chapter 68 is amended by 

3 inserting after the item relating to section 6675 the fol4 lowing new item:

‘‘Sec. 6676. Erroneous claim for refund or credit.’’.

5 (c) EFFECTIVE DATE.—The amendments made by this 

6 section shall apply to any claim filed or submitted after 

7 the date of the enactment of this Act. 

8 SEC. 8248. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

9 TAXES. 

10 Subparagraph (B) of section 401(1) of the Tax In11 crease Prevention and Reconciliation Act of 2005 is amend12 ed by striking ‘‘106.25 percent’’ and inserting ‘‘114.25 per13 cent’’. 

14 Subtitle C—Small Business 

15 Incentives 

16 SEC. 8301. SHORT TITLE. 

17 This subtitle may be cited as the ‘‘Small Business and 

18 Work Opportunity Act of 2007’’. 

19 SEC. 8302. ENHANCED COMPLIANCE ASSISTANCE FOR 

20 SMALL BUSINESSES. 

21 (a) IN GENERAL.—Section 212 of the Small Business 

22 Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 

23 note) is amended by striking subsection (a) and inserting 

24 the following: 

25 ‘‘(a) COMPLIANCE GUIDE.—
211

•HR 2206 EAH 

1 ‘‘(1) IN GENERAL.—For each rule or group of re2 lated rules for which an agency is required to prepare 

3 a final regulatory flexibility analysis under section 

4 605(b) of title 5, United States Code, the agency shall 

5 publish 1 or more guides to assist small entities in 

6 complying with the rule and shall entitle such publi7 cations ‘small entity compliance guides’. 

8 ‘‘(2) PUBLICATION OF GUIDES.—The publication 

9 of each guide under this subsection shall include—

10 ‘‘(A) the posting of the guide in an easily 

11 identified location on the website of the agency; 

12 and 

13 ‘‘(B) distribution of the guide to known in14 dustry contacts, such as small entities, associa15 tions, or industry leaders affected by the rule. 

16 ‘‘(3) PUBLICATION DATE.—An agency shall pub17 lish each guide (including the posting and distribu18 tion of the guide as described under paragraph (2))—

19 ‘‘(A) on the same date as the date of publi20 cation of the final rule (or as soon as possible 

21 after that date); and 

22 ‘‘(B) not later than the date on which the 

23 requirements of that rule become effective. 

24 ‘‘(4) COMPLIANCE ACTIONS.—
212

•HR 2206 EAH 

1 ‘‘(A) IN GENERAL.—Each guide shall ex2 plain the actions a small entity is required to 

3 take to comply with a rule. 

4 ‘‘(B) EXPLANATION.—The explanation 

5 under subparagraph (A)—

6 ‘‘(i) shall include a description of ac7 tions needed to meet the requirements of a 

8 rule, to enable a small entity to know when 

9 such requirements are met; and 

10 ‘‘(ii) if determined appropriate by the 

11 agency, may include a description of pos12 sible procedures, such as conducting tests, 

13 that may assist a small entity in meeting 

14 such requirements, except that, compliance 

15 with any procedures described pursuant to 

16 this section does not establish compliance 

17 with the rule, or establish a presumption or 

18 inference of such compliance. 

19 ‘‘(C) PROCEDURES.—Procedures described 

20 under subparagraph (B)(ii)—

21 ‘‘(i) shall be suggestions to assist small 

22 entities; and 

23 ‘‘(ii) shall not be additional require24 ments, or diminish requirements, relating to 

25 the rule. 
213

•HR 2206 EAH 

1 ‘‘(5) AGENCY PREPARATION OF GUIDES.—The 

2 agency shall, in its sole discretion, taking into ac3 count the subject matter of the rule and the language 

4 of relevant statutes, ensure that the guide is written 

5 using sufficiently plain language likely to be under6 stood by affected small entities. Agencies may prepare 

7 separate guides covering groups or classes of similarly 

8 affected small entities and may cooperate with asso9 ciations of small entities to develop and distribute 

10 such guides. An agency may prepare guides and 

11 apply this section with respect to a rule or a group 

12 of related rules. 

13 ‘‘(6) REPORTING.—Not later than 1 year after 

14 the date of enactment of the Fair Minimum Wage Act 

15 of 2007, and annually thereafter, the head of each 

16 agency shall submit a report to the Committee on 

17 Small Business and Entrepreneurship of the Senate, 

18 the Committee on Small Business of the House of 

19 Representatives, and any other committee of relevant 

20 jurisdiction describing the status of the agency’s com21 pliance with paragraphs (1) through (5).’’. 

22 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec23 tion 211(3) of the Small Business Regulatory Enforcement 

24 Fairness Act of 1996 (5 U.S.C. 601 note) is amended by 

25 inserting ‘‘and entitled’’ after ‘‘designated’’. 
214

•HR 2206 EAH 

1 SEC. 8303. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

2 (a) ESTABLISHMENT.—The Secretary of Health and 

3 Human Services (referred to in this section as the ‘‘Sec4 retary’’) shall establish a program to award grants to 

5 States, on a competitive basis, to assist States in providing 

6 funds to encourage the establishment and operation of em7 ployer-operated child care programs. 

8 (b) APPLICATION.—To be eligible to receive a grant 

9 under this section, a State shall prepare and submit to the 

10 Secretary an application at such time, in such manner, and 

11 containing such information as the Secretary may require, 

12 including an assurance that the funds required under sub13 section (e) will be provided. 

14 (c) AMOUNT AND PERIOD OF GRANT.—The Secretary 

15 shall determine the amount of a grant to a State under 

16 this section based on the population of the State as com17 pared to the population of all States receiving grants under 

18 this section. The Secretary shall make the grant for a period 

19 of 3 years. 

20 (d) USE OF FUNDS.—

21 (1) IN GENERAL.—A State shall use amounts 

22 provided under a grant awarded under this section to 

23 provide assistance to small businesses (or consortia 

24 formed in accordance with paragraph (3)) located in 

25 the State to enable the small businesses (or consortia) 
215

•HR 2206 EAH 

1 to establish and operate child care programs. Such as2 sistance may include—

3 (A) technical assistance in the establishment 

4 of a child care program; 

5 (B) assistance for the startup costs related 

6 to a child care program; 

7 (C) assistance for the training of child care 

8 providers; 

9 (D) scholarships for low-income wage earn10 ers; 

11 (E) the provision of services to care for sick 

12 children or to provide care to school-aged chil13 dren; 

14 (F) the entering into of contracts with local 

15 resource and referral organizations or local 

16 health departments; 

17 (G) assistance for care for children with 

18 disabilities; 

19 (H) payment of expenses for renovation or 

20 operation of a child care facility; or 

21 (I) assistance for any other activity deter22 mined appropriate by the State. 

23 (2) APPLICATION.—In order for a small business 

24 or consortium to be eligible to receive assistance from 

25 a State under this section, the small business involved 
216

•HR 2206 EAH 

1 shall prepare and submit to the State an application 

2 at such time, in such manner, and containing such 

3 information as the State may require. 

4 (3) PREFERENCE.—

5 (A) IN GENERAL.—In providing assistance 

6 under this section, a State shall give priority to 

7 an applicant that desires to form a consortium 

8 to provide child care in a geographic area within 

9 the State where such care is not generally avail10 able or accessible. 

11 (B) CONSORTIUM.—For purposes of sub12 paragraph (A), a consortium shall be made up 

13 of 2 or more entities that shall include small 

14 businesses and that may include large businesses, 

15 nonprofit agencies or organizations, local govern16 ments, or other appropriate entities. 

17 (4) LIMITATIONS.—With respect to grant funds 

18 received under this section, a State may not provide 

19 in excess of $500,000 in assistance from such funds 

20 to any single applicant. 

21 (e) MATCHING REQUIREMENT.—To be eligible to re22 ceive a grant under this section, a State shall provide assur23 ances to the Secretary that, with respect to the costs to be 

24 incurred by a covered entity receiving assistance in car25 rying out activities under this section, the covered entity 
217

•HR 2206 EAH 

1 will make available (directly or through donations from 

2 public or private entities) non-Federal contributions to such 

3 costs in an amount equal to—

4 (1) for the first fiscal year in which the covered 

5 entity receives such assistance, not less than 50 per6 cent of such costs ($1 for each $1 of assistance pro7 vided to the covered entity under the grant); 

8 (2) for the second fiscal year in which the covered entity receives such assistance, not less than 662 9 ⁄3

10 percent of such costs ($2 for each $1 of assistance pro11 vided to the covered entity under the grant); and 

12 (3) for the third fiscal year in which the covered 

13 entity receives such assistance, not less than 75 per14 cent of such costs ($3 for each $1 of assistance pro15 vided to the covered entity under the grant). 

16 (f) REQUIREMENTS OF PROVIDERS.—To be eligible to 

17 receive assistance under a grant awarded under this section, 

18 a child care provider—

19 (1) who receives assistance from a State shall 

20 comply with all applicable State and local licensing 

21 and regulatory requirements and all applicable health 

22 and safety standards in effect in the State; and 

23 (2) who receives assistance from an Indian tribe 

24 or tribal organization shall comply with all applica25 ble regulatory standards. 
218

•HR 2206 EAH 

1 (g) STATE-LEVEL ACTIVITIES.—A State may not re2 tain more than 3 percent of the amount described in sub3 section (c) for State administration and other State-level 

4 activities. 

5 (h) ADMINISTRATION.—

6 (1) STATE RESPONSIBILITY.—A State shall have 

7 responsibility for administering a grant awarded for 

8 the State under this section and for monitoring cov9 ered entities that receive assistance under such grant. 

10 (2) AUDITS.—A State shall require each covered 

11 entity receiving assistance under the grant awarded 

12 under this section to conduct an annual audit with 

13 respect to the activities of the covered entity. Such au14 dits shall be submitted to the State. 

15 (3) MISUSE OF FUNDS.—

16 (A) REPAYMENT.—If the State determines, 

17 through an audit or otherwise, that a covered en18 tity receiving assistance under a grant awarded 

19 under this section has misused the assistance, the 

20 State shall notify the Secretary of the misuse. 

21 The Secretary, upon such a notification, may 

22 seek from such a covered entity the repayment of 

23 an amount equal to the amount of any such mis24 used assistance plus interest. 
219

•HR 2206 EAH 

1 (B) APPEALS PROCESS.—The Secretary 

2 shall by regulation provide for an appeals proc3 ess with respect to repayments under this para4 graph. 

5 (i) REPORTING REQUIREMENTS.—

6 (1) 2-YEAR STUDY.—

7 (A) IN GENERAL.—Not later than 2 years 

8 after the date on which the Secretary first 

9 awards grants under this section, the Secretary 

10 shall conduct a study to determine—

11 (i) the capacity of covered entities to 

12 meet the child care needs of communities 

13 within States; 

14 (ii) the kinds of consortia that are 

15 being formed with respect to child care at 

16 the local level to carry out programs funded 

17 under this section; and 

18 (iii) who is using the programs funded 

19 under this section and the income levels of 

20 such individuals. 

21 (B) REPORT.—Not later than 28 months 

22 after the date on which the Secretary first 

23 awards grants under this section, the Secretary 

24 shall prepare and submit to the appropriate 

25 committees of Congress a report on the results of 
220

•HR 2206 EAH 

1 the study conducted in accordance with subpara2 graph (A). 

3 (2) 4-YEAR STUDY.—

4 (A) IN GENERAL.—Not later than 4 years 

5 after the date on which the Secretary first 

6 awards grants under this section, the Secretary 

7 shall conduct a study to determine the number of 

8 child care facilities that are funded through cov9 ered entities that received assistance through a 

10 grant awarded under this section and that re11 main in operation, and the extent to which such 

12 facilities are meeting the child care needs of the 

13 individuals served by such facilities. 

14 (B) REPORT.—Not later than 52 months 

15 after the date on which the Secretary first 

16 awards grants under this section, the Secretary 

17 shall prepare and submit to the appropriate 

18 committees of Congress a report on the results of 

19 the study conducted in accordance with subpara20 graph (A). 

21 (j) DEFINITIONS.—In this section: 

22 (1) COVERED ENTITY.—The term ‘‘covered enti23 ty’’ means a small business or a consortium formed 

24 in accordance with subsection (d)(3). 
221

•HR 2206 EAH 

1 (2) INDIAN COMMUNITY.—The term ‘‘Indian 

2 community’’ means a community served by an In3 dian tribe or tribal organization. 

4 (3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The 

5 terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have 

6 the meanings given the terms in section 658P of the 

7 Child Care and Development Block Grant Act of 1990 

8 (42 U.S.C. 9858n). 

9 (4) SMALL BUSINESS.—The term ‘‘small busi10 ness’’ means an employer who employed an average 

11 of at least 2 but not more than 50 employees on the 

12 business days during the preceding calendar year. 

13 (5) STATE.—The term ‘‘State’’ has the meaning 

14 given the term in section 658P of the Child Care and 

15 Development Block Grant Act of 1990 (42 U.S.C. 

16 9858n). 

17 (k) APPLICATION TO INDIAN TRIBES AND TRIBAL OR18 GANIZATIONS.—In this section: 

19 (1) IN GENERAL.—Except as provided in sub20 section (f)(1), and in paragraphs (2) and (3), the 

21 term ‘‘State’’ includes an Indian tribe or tribal orga22 nization. 

23 (2) GEOGRAPHIC REFERENCES.—The term 

24 ‘‘State’’ includes an Indian community in subsections 

25 (c) (the second and third place the term appears), 
222

•HR 2206 EAH 

1 (d)(1) (the second place the term appears), (d)(3)(A) 

2 (the second place the term appears), and (i)(1)(A)(i). 

3 (3) STATE-LEVEL ACTIVITIES.—The term ‘‘State4 level activities’’ includes activities at the tribal level. 

5 (l) AUTHORIZATION OF APPROPRIATIONS.—

6 (1) IN GENERAL.—There is authorized to be ap7 propriated to carry out this section, $50,000,000 for 

8 the period of fiscal years 2008 through 2012. 

9 (2) STUDIES AND ADMINISTRATION.—With re10 spect to the total amount appropriated for such pe11 riod in accordance with this subsection, not more 

12 than $2,500,000 of that amount may be used for ex13 penditures related to conducting studies required 

14 under, and the administration of, this section. 

15 (m) TERMINATION OF PROGRAM.—The program estab16 lished under subsection (a) shall terminate on September 

17 30, 2012. 

18 SEC. 8304. STUDY OF UNIVERSAL USE OF ADVANCE PAY19 MENT OF EARNED INCOME CREDIT. 

20 Not later than 180 days after the date of the enactment 

21 of this Act, the Secretary of the Treasury shall report to 

22 Congress on a study of the benefits, costs, risks, and barriers 

23 to workers and to businesses (with a special emphasis on 

24 small businesses) if the advance earned income tax credit 

25 program (under section 3507 of the Internal Revenue Code 
223

•HR 2206 EAH 

1 of 1986) included all recipients of the earned income tax 

2 credit (under section 32 of such Code) and what steps would 

3 be necessary to implement such inclusion. 

4 SEC. 8305. RENEWAL GRANTS FOR WOMEN’S BUSINESS CEN5 TERS. 

6 (a) IN GENERAL.—Section 29 of the Small Business 

7 Act (15 U.S.C. 656) is amended by adding at the end the 

8 following: 

9 ‘‘(m) CONTINUED FUNDING FOR CENTERS.—

10 ‘‘(1) IN GENERAL.—A nonprofit organization de11 scribed in paragraph (2) shall be eligible to receive, 

12 subject to paragraph (3), a 3-year grant under this 

13 subsection. 

14 ‘‘(2) APPLICABILITY.—A nonprofit organization 

15 described in this paragraph is a nonprofit organiza16 tion that has received funding under subsection (b) or 

17 (l). 

18 ‘‘(3) APPLICATION AND APPROVAL CRITERIA.—

19 ‘‘(A) CRITERIA.—Subject to subparagraph 

20 (B), the Administrator shall develop and publish 

21 criteria for the consideration and approval of 

22 applications by nonprofit organizations under 

23 this subsection. 

24 ‘‘(B) CONTENTS.—Except as otherwise pro25 vided in this subsection, the conditions for par-
224

•HR 2206 EAH 

1 ticipation in the grant program under this sub2 section shall be the same as the conditions for 

3 participation in the program under subsection 

4 (l), as in effect on the date of enactment of this 

5 Act. 

6 ‘‘(C) NOTIFICATION.—Not later than 60 

7 days after the date of the deadline to submit ap8 plications for each fiscal year, the Administrator 

9 shall approve or deny any application under 

10 this subsection and notify the applicant for each 

11 such application. 

12 ‘‘(4) AWARD OF GRANTS.—

13 ‘‘(A) IN GENERAL.—Subject to the avail14 ability of appropriations, the Administrator 

15 shall make a grant for the Federal share of the 

16 cost of activities described in the application to 

17 each applicant approved under this subsection. 

18 ‘‘(B) AMOUNT.—A grant under this sub19 section shall be for not more than $150,000, for 

20 each year of that grant. 

21 ‘‘(C) FEDERAL SHARE.—The Federal share 

22 under this subsection shall be not more than 50 

23 percent. 

24 ‘‘(D) PRIORITY.—In allocating funds made 

25 available for grants under this section, the Ad-
225

•HR 2206 EAH 

1 ministrator shall give applications under this 

2 subsection or subsection (l) priority over first3 time applications under subsection (b). 

4 ‘‘(5) RENEWAL.—

5 ‘‘(A) IN GENERAL.—The Administrator 

6 may renew a grant under this subsection for ad7 ditional 3-year periods, if the nonprofit organi8 zation submits an application for such renewal 

9 at such time, in such manner, and accompanied 

10 by such information as the Administrator may 

11 establish. 

12 ‘‘(B) UNLIMITED RENEWALS.—There shall 

13 be no limitation on the number of times a grant 

14 may be renewed under subparagraph (A). 

15 ‘‘(n) PRIVACY REQUIREMENTS.—

16 ‘‘(1) IN GENERAL.—A women’s business center 

17 may not disclose the name, address, or telephone 

18 number of any individual or small business concern 

19 receiving assistance under this section without the 

20 consent of such individual or small business concern, 

21 unless—

22 ‘‘(A) the Administrator is ordered to make 

23 such a disclosure by a court in any civil or 

24 criminal enforcement action initiated by a Fed25 eral or State agency; or 
226

•HR 2206 EAH 

1 ‘‘(B) the Administrator considers such a 

2 disclosure to be necessary for the purpose of con3 ducting a financial audit of a women’s business 

4 center, but a disclosure under this subparagraph 

5 shall be limited to the information necessary for 

6 such audit. 

7 ‘‘(2) ADMINISTRATION USE OF INFORMATION.—

8 This subsection shall not—

9 ‘‘(A) restrict Administration access to pro10 gram activity data; or 

11 ‘‘(B) prevent the Administration from using 

12 client information (other than the information 

13 described in subparagraph (A)) to conduct client 

14 surveys. 

15 ‘‘(3) REGULATIONS.—The Administrator shall 

16 issue regulations to establish standards for requiring 

17 disclosures during a financial audit under paragraph 

18 (1)(B).’’. 

19 (b) REPEAL.—Section 29(l) of the Small Business Act 

20 (15 U.S.C. 656(l)) is repealed effective October 1 of the first 

21 full fiscal year after the date of enactment of this Act. 

22 (c) TRANSITIONAL RULE.—Notwithstanding any other 

23 provision of law, a grant or cooperative agreement that was 

24 awarded under subsection (l) of section 29 of the Small 

25 Business Act (15 U.S.C. 656), on or before the day before 
227

•HR 2206 EAH 

1 the date described in subsection (b) of this section, shall re2 main in full force and effect under the terms, and for the 

3 duration, of such grant or agreement. 

4 SEC. 8306. REPORTS ON ACQUISITIONS OF ARTICLES, MATE5 RIALS, AND SUPPLIES MANUFACTURED OUT6 SIDE THE UNITED STATES. 

7 Section 2 of the Buy American Act (41 U.S.C. 10a) 

8 is amended—

9 (1) by striking ‘‘Notwithstanding’’ and inserting 

10 the following: 

11 ‘‘(a) IN GENERAL.—Notwithstanding’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(b) REPORTS.—

14 ‘‘(1) IN GENERAL.—Not later than 180 days 

15 after the end of each of fiscal years 2007 through 

16 2011, the head of each Federal agency shall submit to 

17 the Committee on Homeland Security and Govern18 mental Affairs of the Senate and the Committee on 

19 Oversight and Government Reform of the House of 

20 Representatives a report on the amount of the acqui21 sitions made by the agency in that fiscal year of arti22 cles, materials, or supplies purchased from entities 

23 that manufacture the articles, materials, or supplies 

24 outside of the United States. 
228

•HR 2206 EAH 

1 ‘‘(2) CONTENTS OF REPORT.—The report re2 quired by paragraph (1) shall separately include, for 

3 the fiscal year covered by such report—

4 ‘‘(A) the dollar value of any articles, mate5 rials, or supplies that were manufactured outside 

6 the United States; 

7 ‘‘(B) an itemized list of all waivers granted 

8 with respect to such articles, materials, or sup9 plies under this Act, and a citation to the treaty, 

10 international agreement, or other law under 

11 which each waiver was granted; 

12 ‘‘(C) if any articles, materials, or supplies 

13 were acquired from entities that manufacture ar14 ticles, materials, or supplies outside the United 

15 States, the specific exception under this section 

16 that was used to purchase such articles, mate17 rials, or supplies; and 

18 ‘‘(D) a summary of—

19 ‘‘(i) the total procurement funds ex20 pended on articles, materials, and supplies 

21 manufactured inside the United States; and 

22 ‘‘(ii) the total procurement funds ex23 pended on articles, materials, and supplies 

24 manufactured outside the United States. 
229

•HR 2206 EAH 

1 ‘‘(3) PUBLIC AVAILABILITY.—The head of each 

2 Federal agency submitting a report under paragraph 

3 (1) shall make the report publicly available to the 

4 maximum extent practicable. 

5 ‘‘(4) EXCEPTION FOR INTELLIGENCE COMMU6 NITY.—This subsection shall not apply to acquisitions 

7 made by an agency, or component thereof, that is an 

8 element of the intelligence community as specified in, 

9 or designated under, section 3(4) of the National Se10 curity Act of 1947 (50 U.S.C. 401a(4)).’’. 

11 TITLE IX—AGRICULTURAL 

12 ASSISTANCE 

13 SEC. 9001. CROP DISASTER ASSISTANCE. 

14 (a) ASSISTANCE AVAILABLE.—There are hereby appro15 priated to the Secretary of Agriculture such sums as are 

16 necessary, to remain available until expended, to make 

17 emergency financial assistance available to producers on a 

18 farm that incurred qualifying quantity or quality losses for 

19 the 2005, 2006, or 2007 crop, due to damaging weather or 

20 any related condition (including losses due to crop diseases, 

21 insects, and delayed planting), as determined by the Sec22 retary. However, to be eligible for assistance, the crop sub23 ject to the loss must have been planted before February 28, 

24 2007, or, in the case of prevented planting or other total 

25 loss, would have been planted before February 28, 2007, in 
230

•HR 2206 EAH 

1 the absence of the damaging weather or any related condi2 tion. 

3 (b) ELECTION OF CROP YEAR.—If a producer incurred 

4 qualifying crop losses in more than one of the 2005, 2006, 

5 or 2007 crop years, the producer shall elect to receive assist6 ance under this section for losses incurred in only one of 

7 such crop years. The producer may not receive assistance 

8 under this section for more than one crop year. 

9 (c) ADMINISTRATION.—

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the Secretary of Agriculture shall make as12 sistance available under this section in the same man13 ner as provided under section 815 of the Agriculture, 

14 Rural Development, Food and Drug Administration 

15 and Related Agencies Appropriations Act, 2001 (Pub16 lic Law 106–387; 114 Stat. 1549A–55), including 

17 using the same loss thresholds for quantity and eco18 nomic losses as were used in administering that sec19 tion, except that the payment rate shall be 42 percent 

20 of the established price, instead of 65 percent. 

21 (2) LOSS THRESHOLDS FOR QUALITY LOSSES.—

22 In the case of a payment for quality loss for a crop 

23 under subsection (a), the loss thresholds for quality 

24 loss for the crop shall be determined under subsection 

25 (d). 
231

•HR 2206 EAH 

1 (d) QUALITY LOSSES.—

2 (1) IN GENERAL.—Subject to paragraph (3), the 

3 amount of a payment made to producers on a farm 

4 for a quality loss for a crop under subsection (a) shall 

5 be equal to the amount obtained by multiplying—

6 (A) 65 percent of the payment quantity de7 termined under paragraph (2); by 

8 (B) 42 percent of the payment rate deter9 mined under paragraph (3). 

10 (2) PAYMENT QUANTITY.—For the purpose of 

11 paragraph (1)(A), the payment quantity for quality 

12 losses for a crop of a commodity on a farm shall 

13 equal the lesser of—

14 (A) the actual production of the crop af15 fected by a quality loss of the commodity on the 

16 farm; or 

17 (B) the quantity of expected production of 

18 the crop affected by a quality loss of the com19 modity on the farm, using the formula used by 

20 the Secretary of Agriculture to determine quan21 tity losses for the crop of the commodity under 

22 subsection (a). 

23 (3) PAYMENT RATE.—For the purpose of para24 graph (1)(B) and in accordance with paragraphs (5) 

25 and (6), the payment rate for quality losses for a crop 
232

•HR 2206 EAH 

1 of a commodity on a farm shall be equal to the dif2 ference between—

3 (A) the per unit market value that the units 

4 of the crop affected by the quality loss would 

5 have had if the crop had not suffered a quality 

6 loss; and 

7 (B) the per unit market value of the units 

8 of the crop affected by the quality loss. 

9 (4) ELIGIBILITY.—For producers on a farm to be 

10 eligible to obtain a payment for a quality loss for a 

11 crop under subsection (a), the amount obtained by 

12 multiplying the per unit loss determined under para13 graph (1) by the number of units affected by the qual14 ity loss shall be at least 25 percent of the value that 

15 all affected production of the crop would have had if 

16 the crop had not suffered a quality loss. 

17 (5) MARKETING CONTRACTS.—In the case of any 

18 production of a commodity that is sold pursuant to 

19 one or more marketing contracts (regardless of wheth20 er the contract is entered into by the producers on the 

21 farm before or after harvest) and for which appro22 priate documentation exists, the quantity designated 

23 in the contracts shall be eligible for quality loss assist24 ance based on the one or more prices specified in the 

25 contracts. 
233

•HR 2206 EAH 

1 (6) OTHER PRODUCTION.—For any additional 

2 production of a commodity for which a marketing 

3 contract does not exist or for which production con4 tinues to be owned by the producer, quality losses 

5 shall be based on the average local market discounts 

6 for reduced quality, as determined by the appropriate 

7 State committee of the Farm Service Agency. 

8 (7) QUALITY ADJUSTMENTS AND DISCOUNTS.—

9 The appropriate State committee of the Farm Service 

10 Agency shall identify the appropriate quality adjust11 ment and discount factors to be considered in car12 rying out this subsection, including—

13 (A) the average local discounts actually ap14 plied to a crop; and 

15 (B) the discount schedules applied to loans 

16 made by the Farm Service Agency or crop insur17 ance coverage under the Federal Crop Insurance 

18 Act (7 U.S.C. 1501 et seq.). 

19 (8) ELIGIBLE PRODUCTION.—The Secretary of 

20 Agriculture shall carry out this subsection in a fair 

21 and equitable manner for all eligible production, in22 cluding the production of fruits and vegetables, other 

23 specialty crops, and field crops. 

24 (e) PAYMENT LIMITATIONS.—
234

•HR 2206 EAH 

1 (1) LIMIT ON AMOUNT OF ASSISTANCE.—Assist2 ance provided under this section to a producer for 

3 losses to a crop, together with the amounts specified 

4 in paragraph (2) applicable to the same crop, may 

5 not exceed 95 percent of what the value of the crop 

6 would have been in the absence of the losses, as esti7 mated by the Secretary of Agriculture. 

8 (2) OTHER PAYMENTS.—In applying the limita9 tion in paragraph (1), the Secretary shall include the 

10 following: 

11 (A) Any crop insurance payment made 

12 under the Federal Crop Insurance Act (7 U.S.C. 

13 1501 et seq.) or payment under section 196 of the 

14 Federal Agriculture Improvement and Reform 

15 Act of 1996 (7 U.S.C. 7333) that the producer 

16 receives for losses to the same crop. 

17 (B) The value of the crop that was not lost 

18 (if any), as estimated by the Secretary. 

19 (f) ELIGIBILITY REQUIREMENTS AND LIMITATIONS.—

20 The producers on a farm shall not be eligible for assistance 

21 under this section with respect to losses to an insurable com22 modity or noninsurable commodity if the producers on the 

23 farm—

24 (1) in the case of an insurable commodity, did 

25 not obtain a policy or plan of insurance for the in-
235

•HR 2206 EAH 

1 surable commodity under the Federal Crop Insurance 

2 Act (7 U.S.C. 1501 et seq.) for the crop incurring the 

3 losses; 

4 (2) in the case of a noninsurable commodity, did 

5 not file the required paperwork, and pay the adminis6 trative fee by the applicable State filing deadline, for 

7 the noninsurable commodity under section 196 of the 

8 Federal Agriculture Improvement and Reform Act of 

9 1996 (7 U.S.C. 7333) for the crop incurring the 

10 losses; or 

11 (3) were not in compliance with highly erodible 

12 land conservation and wetland conservation provi13 sions. 

14 (g) TIMING.—

15 (1) IN GENERAL.—Subject to paragraph (2), the 

16 Secretary of Agriculture shall make payments to pro17 ducers on a farm for a crop under this section not 

18 later than 60 days after the date the producers on the 

19 farm submit to the Secretary a completed application 

20 for the payments. 

21 (2) INTEREST.—If the Secretary does not make 

22 payments to the producers on a farm by the date de23 scribed in paragraph (1), the Secretary shall pay to 

24 the producers on a farm interest on the payments at 

25 a rate equal to the current (as of the sign-up deadline 
236

•HR 2206 EAH 

1 established by the Secretary) market yield on out2 standing, marketable obligations of the United States 

3 with maturities of 30 years. 

4 (h) DEFINITIONS.—In this section: 

5 (1) INSURABLE COMMODITY.—The term ‘‘insur6 able commodity’’ means an agricultural commodity 

7 (excluding livestock) for which the producers on a 

8 farm are eligible to obtain a policy or plan of insur9 ance under the Federal Crop Insurance Act (7 U.S.C. 

10 1501 et seq.). 

11 (2) NONINSURABLE COMMODITY.—The term 

12 ‘‘noninsurable commodity’’ means a crop for which 

13 the producers on a farm are eligible to obtain assist14 ance under section 196 of the Federal Agriculture Im15 provement and Reform Act of 1996 (7 U.S.C. 7333). 

16 SEC. 9002. LIVESTOCK ASSISTANCE. 

17 (a) LIVESTOCK COMPENSATION PROGRAM.—

18 (1) AVAILABILITY OF ASSISTANCE.—There are 

19 hereby appropriated to the Secretary of Agriculture 

20 such sums as are necessary, to remain available until 

21 expended, to carry out the livestock compensation pro22 gram established under subpart B of part 1416 of 

23 title 7, Code of Federal Regulations, as announced by 

24 the Secretary on February 12, 2007 (72 Fed. Reg. 

25 6443), to provide compensation for livestock losses be-
237

•HR 2206 EAH 

1 tween January 1, 2005 and February 28, 2007, due 

2 to a disaster, as determined by the Secretary (includ3 ing losses due to blizzards that started in 2006 and 

4 continued into January 2007). However, the payment 

5 rate for compensation under this subsection shall be 

6 61 percent of the payment rate otherwise applicable 

7 under such program. In addition, section 

8 1416.102(b)(2)(ii) of title 7, Code of Federal Regula9 tions (72 Fed. Reg. 6444) shall not apply. 

10 (2) ELIGIBLE APPLICANTS.—In carrying out the 

11 program described in paragraph (1), the Secretary 

12 shall provide assistance to any applicant that—

13 (A) conducts a livestock operation that is lo14 cated in a disaster county with eligible livestock 

15 specified in paragraph (1) of section 1416.102(a) 

16 of title 7, Code of Federal Regulations (72 Fed. 

17 Reg. 6444), an animal described in section 

18 10806(a)(1) of the Farm Security and Rural In19 vestment Act of 2002 (21 U.S.C. 321d(a)(1)), or 

20 other animals designated by the Secretary as 

21 livestock for purposes of this subsection; and 

22 (B) meets the requirements of paragraphs 

23 (3) and (4) of section 1416.102(a) of title 7, Code 

24 of Federal Regulations, and all other eligibility 
238

•HR 2206 EAH 

1 requirements established by the Secretary for the 

2 program. 

3 (3) ELECTION OF LOSSES.—

4 (A) If a producer incurred eligible livestock 

5 losses in more than one of the 2005, 2006, or 

6 2007 calendar years, the producer shall elect to 

7 receive payments under this subsection for losses 

8 incurred in only one of such calendar years, and 

9 such losses must have been incurred in a county 

10 declared or designated as a disaster county in 

11 that same calendar year. 

12 (B) Producers may elect to receive com13 pensation for losses in the calendar year 2007 

14 grazing season that are attributable to wildfires 

15 occurring during the applicable period, as deter16 mined by the Secretary. 

17 (4) MITIGATION.—In determining the eligibility 

18 for or amount of payments for which a producer is 

19 eligible under the livestock compensation program, the 

20 Secretary shall not penalize a producer that takes ac21 tions (recognizing disaster conditions) that reduce the 

22 average number of livestock the producer owned for 

23 grazing during the production year for which assist24 ance is being provided. 

25 (5) DEFINITIONS.—In this subsection: 
239

•HR 2206 EAH 

1 (A) DISASTER COUNTY.—The term ‘‘disaster 

2 county’’ means—

3 (i) a county included in the geographic 

4 area covered by a natural disaster declara5 tion; and 

6 (ii) each county contiguous to a county 

7 described in clause (i). 

8 (B) NATURAL DISASTER DECLARATION.—

9 The term ‘‘natural disaster declaration’’ 

10 means—

11 (i) a natural disaster declared by the 

12 Secretary between January 1, 2005 and 

13 February 28, 2007, under section 321(a) of 

14 the Consolidated Farm and Rural Develop15 ment Act (7 U.S.C. 1961(a)); 

16 (ii) a major disaster or emergency des17 ignated by the President between January 

18 1, 2005 and February 28, 2007, under the 

19 Robert T. Stafford Disaster Relief and 

20 Emergency Assistance Act (42 U.S.C. 5121 

21 et seq.); or 

22 (iii) a determination of a Farm Serv23 ice Agency Administrator’s Physical Loss 

24 Notice if such notice applies to a county in25 cluded under (ii). 
240

•HR 2206 EAH 

1 (b) LIVESTOCK INDEMNITY PAYMENTS.—

2 (1) AVAILABILITY OF ASSISTANCE.—There are 

3 hereby appropriated to the Secretary of Agriculture 

4 such sums as are necessary, to remain available until 

5 expended, to make livestock indemnity payments to 

6 producers on farms that have incurred livestock losses 

7 between January 1, 2005 and February 28, 2007, due 

8 to a disaster, as determined by the Secretary (includ9 ing losses due to blizzards that started in 2006 and 

10 continued into January 2007) in a disaster county. 

11 To be eligible for assistance, applicants must meet all 

12 eligibility requirements established by the Secretary 

13 for the program. 

14 (2) ELECTION OF LOSSES.—If a producer in15 curred eligible livestock losses in more than one of the 

16 2005, 2006, or 2007 calendar years, the producer 

17 shall elect to receive payments under this subsection 

18 for losses incurred in only one of such calendar years. 

19 The producer may not receive payments under this 

20 subsection for more than one calendar year. 

21 (3) PAYMENT RATES.—Indemnity payments to a 

22 producer on a farm under paragraph (1) shall be 

23 made at a rate of not less than 26 percent of the mar24 ket value of the applicable livestock on the day before 
241

•HR 2206 EAH 

1 the date of death of the livestock, as determined by the 

2 Secretary. 

3 (4) LIVESTOCK DEFINED.—In this subsection, the 

4 term ‘‘livestock’’ means an animal that—

5 (A) is specified in clause (i) of section 

6 1416.203(a)(2) of title 7, Code of Federal Regu7 lations (72 Fed. Reg. 6445), or is designated by 

8 the Secretary as livestock for purposes of this 

9 subsection; and 

10 (B) meets the requirements of clauses (iii) 

11 and (iv) of such section. 

12 (5) DEFINITIONS.—In this subsection: 

13 (A) DISASTER COUNTY.—The term ‘‘disaster 

14 county’’ means—

15 (i) a county included in the geographic 

16 area covered by a natural disaster declara17 tion; and 

18 (ii) each county contiguous to a county 

19 described in clause (i). 

20 (B) NATURAL DISASTER DECLARATION.—

21 The term ‘‘natural disaster declaration’’ 

22 means—

23 (i) a natural disaster declared by the 

24 Secretary between January 1, 2005 and 

25 February 28, 2007, under section 321(a) of 
242

•HR 2206 EAH 

1 the Consolidated Farm and Rural Develop2 ment Act (7 U.S.C. 1961(a)); 

3 (ii) a major disaster or emergency des4 ignated by the President between January 

5 1, 2005 and February 28, 2007, under the 

6 Robert T. Stafford Disaster Relief and 

7 Emergency Assistance Act (42 U.S.C. 5121 

8 et seq.); or 

9 (iii) a determination of a Farm Serv10 ice Agency Administrator’s Physical Loss 

11 Notice if such notice applies to a county in12 cluded under (ii). 

13 SEC. 9003. EMERGENCY CONSERVATION PROGRAM. 

14 There is hereby appropriated to the Secretary of Agri15 culture $16,000,000, to remain available until expended, to 

16 provide assistance under the Emergency Conservation Pro17 gram under title IV of the Agriculture Credit Act of 1978 

18 (16 U.S.C. 2201 et seq.) for the cleanup and restoration 

19 of farm and agricultural production lands. 

20 SEC. 9004. PAYMENT LIMITATIONS. 

21 (a) REDUCTION IN PAYMENTS TO REFLECT PAYMENTS

22 FOR SAME OR SIMILAR LOSSES.—The amount of any pay23 ment for which a producer is eligible under sections 9001 

24 and 9002 shall be reduced by any amount received by the 

25 producer for the same loss or any similar loss under—
243

•HR 2206 EAH 

1 (1) the Department of Defense, Emergency Sup2 plemental Appropriations to Address Hurricanes in 

3 the Gulf of Mexico, and Pandemic Influenza Act, 

4 2006 (Public Law 109–148; 119 Stat. 2680); 

5 (2) an agricultural disaster assistance provision 

6 contained in the announcement of the Secretary on 

7 January 26, 2006 or August 29, 2006; or 

8 (3) the Emergency Supplemental Appropriations 

9 Act for Defense, the Global War on Terror, and Hur10 ricane Recovery, 2006 (Public Law 109–234; 120 

11 Stat. 418). 

12 (b) ADJUSTED GROSS INCOME LIMITATION.—Section 

13 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–

14 3a) shall apply with respect to assistance provided under 

15 sections 9001, 9002, and 9003. 

16 SEC. 9005. ADMINISTRATION. 

17 (a) REGULATIONS.—The Secretary of Agriculture may 

18 promulgate such regulations as are necessary to implement 

19 sections 9001 and 9002. 

20 (b) PROCEDURE.—The promulgation of the imple21 menting regulations and the administration of sections 

22 9001 and 9002 shall be made without regard to—

23 (1) the notice and comment provisions of section 

24 553 of title 5, United States Code; 
244

•HR 2206 EAH 

1 (2) the Statement of Policy of the Secretary of 

2 Agriculture effective July 24, 1971 (36 Fed. Reg. 

3 13804), relating to notices of proposed rulemaking 

4 and public participation in rulemaking; and 

5 (3) chapter 35 of title 44, United States Code 

6 (commonly known as the ‘‘Paperwork Reduction 

7 Act’’). 

8 (c) CONGRESSIONAL REVIEW OF AGENCY RULE9 MAKING.—In carrying out this section, the Secretary of Ag10 riculture shall use the authority provided under section 808 

11 of title 5, United States Code. 

12 (d) USE OF COMMODITY CREDIT CORPORATION; LIMI13 TATION.—In implementing sections 9001 and 9002, the Sec14 retary of Agriculture may use the facilities, services, and 

15 authorities of the Commodity Credit Corporation. The Cor16 poration shall not make any expenditures to carry out sec17 tions 9001 and 9002 unless funds have been specifically ap18 propriated for such purpose. 

19 SEC. 9006. MILK INCOME LOSS CONTRACT PROGRAM. 

20 (a) Section 1502(c)(3) of the Farm Security and Rural 

21 Investment Act of 2002 (7 U.S.C. 7982(c)(3)) is amended—

22 (1) in subparagraph (A), by adding ‘‘and’’ at the 

23 end; 
245

•HR 2206 EAH 

1 (2) in subparagraph (B), by striking ‘‘August’’ 

2 and all that follows through the end and inserting 

3 ‘‘September 30, 2007, 34 percent.’’; and 

4 (3) by striking subparagraph (C). 

5 (b) Section 10002 of this Act shall not apply to this 

6 section except with respect to fiscal years 2007 and 2008. 

7 SEC. 9007. DAIRY ASSISTANCE. 

8 There is hereby appropriated $16,000,000 to make 

9 payments to dairy producers for dairy production losses in 

10 disaster counties, as defined in section 9002 of this title, 

11 to remain available until expended. 

12 SEC. 9008. NONINSURED CROP ASSISTANCE PROGRAM. 

13 For states in which there is a shortage of claims adjus14 tors, as determined by the Secretary, the Secretary shall 

15 permit the use of one claims adjustor certified by the Sec16 retary in carrying out 7 CFR 1437.401. 

17 SEC. 9009. EMERGENCY GRANTS TO ASSIST LOW-INCOME 

18 MIGRANT AND SEASONAL FARMWORKERS. 

19 There is hereby appropriated $16,000,000 to carry out 

20 section 2281 of the Food, Agriculture, Conservation and 

21 Trade Act of 1990 (42 U.S.C. 5177a), to remain available 

22 until expended. 
246

•HR 2206 EAH 

1 SEC. 9010. CONSERVATION SECURITY PROGRAM. 

2 Section 20115 of Public Law 110–5 is amended by 

3 striking ‘‘section 726’’ and inserting in lieu thereof ‘‘section 

4 726; section 741’’. 

5 SEC. 9011. ADMINISTRATIVE EXPENSES. 

6 There is hereby appropriated $22,000,000 for the 

7 ‘‘Farm Service Agency, Salaries and Expenses’’, to remain 

8 available until September 30, 2008. 

9 SEC. 9012. CONTRACT WAIVER. 

10 In carrying out crop disaster and livestock assistance 

11 in this title, the Secretary shall require forage producers 

12 to have participated in a crop insurance pilot program or 

13 the Non-Insured Crop Disaster Assistance Program during 

14 the crop year for which compensation is received. 

15 TITLE X—GENERAL PROVISIONS 

16 SEC. 10001. No part of any appropriation contained 

17 in this Act shall remain available for obligation beyond the 

18 current fiscal year unless expressly so provided herein. 

19 SEC. 10002. Amounts in this Act (other than in titles 

20 VI and VIII) are designated as emergency requirements and 

21 necessary to meet emergency needs pursuant to subsections 

22 (a) and (b) of section 204 of S. Con. Res. 21 (110th Con-
247

•HR 2206 EAH 

1 gress), the concurrent resolution on the budget for fiscal year 

2 2008. 

Attest:

Clerk. 

110TH CONGRESS 

1ST SESSION H.R. 2206

HOUSE AMENDMENT TO

SENATE AMENDMENT