II 

109TH CONGRESS 

1ST SESSION S. 1766 

To provide disaster relief and incentives for economic recovery for Louisiana 

residents and businesses affected by Hurricane Katrina. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2005 

Mr. VITTER (for himself and Ms. LANDRIEU) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To provide disaster relief and incentives for economic recovery for Louisiana residents and businesses affected by 

Hurricane Katrina. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Louisiana Katrina Re5 construction Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Treatment of amounts appropriated under this Act. 
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TITLE I—EMERGENCY SUPPLEMENTAL APPROPRIATIONS 

Subtitle A—Department of Defense—Military 

Subtitle B—Military Construction 

Subtitle C—Department of Veterans Affairs 

Subtitle D—Department of Commerce 

Subtitle E—Department of Homeland Security 

Subtitle F—Department of Health and Human Services 

Subtitle G—Department of Housing and Urban Development 

Subtitle H—Department of Transportation 

Subtitle I—Department of Energy 

Subtitle J—Department of Education 

Subtitle K—Coast Guard 

Subtitle L—Department of the Interior 

Subtitle M—Department of Agriculture 

Subtitle N—Department of Justice 

TITLE II—IMPROVEMENTS TO DISASTER ASSISTANCE 

Sec. 200. Sense of the Senate regarding the appointment of Federal Central 

Coordinating Agent. 

Subtitle A—Immediate Disaster Relief 

Sec. 201. Waiver of cost-sharing and maximum assistance requirements. 

Sec. 202. Hazard mitigation grant program. 

Sec. 203. State management costs. 

Sec. 204. Disaster relief equity. 

Sec. 205. Presidentially declared disaster area may include the Outer Continental Shelf. 

Sec. 206. Expedited payments of Federal assistance for debris removal and 

emergency protective measures. 

Sec. 207. Requirement to ensure debris clearance, removal, and disposal from 

emergency access roads. 

Sec. 208. Inclusion of debris removal from private land as eligible claim for 

Federal assistance. 

Sec. 209. Stafford Act waiver. 

Subtitle B—Providing Information and Assistance to Hurricane Katrina 

Evacuees 

Sec. 211. Use of disaster relief and emergency assistance funds by individuals 

and households. 

Subtitle C—Emergency Preparedness and Response 
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Sec. 221. Creation of regional and field office facilities for the Department of 

Homeland Security. 

Sec. 222. Appropriation for interoperable communications. 

Sec. 223. Responsibilities of the Under Secretary for Emergency Preparedness 

and Response. 

Sec. 224. Government Accountability Office report on Federal funds for Hurricane Katrina recovery. 

TITLE III—INDIVIDUAL CITIZENS RELIEF AND RECOVERY 

Subtitle A—Housing Relief 

Sec. 301. Housing vouchers. 

Sec. 302. Home program. 

Sec. 303. First time home buyer expansion. 

Sec. 304. Home Business and Mortgage Protection Fund. 

Sec. 305. Community Development Block Grant Program. 

Sec. 306. Rural Housing and Economic Development Program. 

Sec. 307. Definitions. 

Subtitle B—TANF Relief 

Sec. 311. Reimbursement of States for TANF benefits provided to assist families from other States affected by Hurricane Katrina. 

Sec. 312. Increase in amount of additional TANF funds available for hurricane-damaged States. 

Sec. 313. Work requirements and time limits under TANF program not triggered by receipt of temporary tanf benefits by families affected 

by Hurricane Katrina. 

Sec. 314. Emergency designation. 

Subtitle C—Medicaid, Medicare, and Other Health Disaster Relief 

Sec. 321. Definitions. 

Sec. 322. Disaster relief medicaid. 

Sec. 323. Targeted medicaid relief for direct impact parishes. 

Sec. 324. Authority to waive requirements during national emergencies with respect to evacuees from an emergency area. 

Sec. 325. Emergency assistance for States with respect to the Federal medical 

assistance percentage for fiscal year 2006. 

Sec. 326. Emergency assistance to medicare beneficiaries. 

Sec. 327. 100 percent Federal matching payments under medicaid for uncompensated care provided to survivors of Hurricane Katrina. 

Sec. 328. Disaster relief fund for payments for private health insurance coverage. 

Sec. 329. Eligibility of Katrina survivors for refundable credit for health insurance costs and assistance with health insurance coverage under 

national emergency grants. 

Sec. 330A. National Health Service Corps. 

Sec. 300A. Community health center grants. 

Sec. 330B. Telemedicine. 

Sec. 330C. Penalties for fraudulent use of licensure. 

Sec. 330D. Waiver of certain medicare quality reporting requirements for hospitals. 

Sec. 330E. Moratorium on redeterminations. 

Sec. 330F. Accommodation of special needs of Katrina Survivors under medicare program. 
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Sec. 330G. Medicare providers and suppliers. 

Subtitle D—Bankruptcy Relief 

Sec. 331. Definitions; who may be a debtor. 

Sec. 332. Amendments to chapter 5. 

Sec. 333. Amendments to chapter 7. 

Sec. 334. Amendments to chapter 11. 

Sec. 335. Amendments to chapter 13. 

Sec. 336. Effective date; application of amendments. 

Subtitle E—Unemployment Compensation 

Sec. 341. Federal-State agreements. 

Sec. 342. Temporary Extended Unemployment Compensation Account. 

Sec. 343. Payments to States having agreements for the payment of temporary 

extended unemployment compensation. 

Sec. 344. Financing provisions. 

Sec. 345. Fraud and overpayments. 

Sec. 346. Definitions. 

Sec. 347. Applicability. 

Subtitle F—Special Reed Act Transfer 

Sec. 351. Special Reed Act transfer. 

TITLE IV—PUBLIC RELIEF, SMALL BUSINESS, AND 

AGRICULTURE RECOVERY 

Subtitle A—Education Assistance 

Sec. 401. Federal work study. 

Sec. 402. Eligibility of hospitals for assistance. 

Sec. 403. Assistance for students affected by Hurricane Katrina. 

Subtitle B—Small Business Recovery 

Sec. 411. Disaster loans. 

Sec. 412. Development company debentures. 

Sec. 413. Small business emergency relief. 

Sec. 414. Entrepreneurial development. 

Sec. 415. Small business development centers. 

Sec. 416. Hubzones. 

Sec. 417. Outreach programs. 

Sec. 418. Small business bonding threshold. 

Sec. 419. Supplemental emergency loans. 

Sec. 420. Small business participation. 

Sec. 421. Energy emergency relief. 

Sec. 422. Budgetary treatment of loans and financings. 

Sec. 423. Emergency spending. 

Subtitle C—Agriculture 

Sec. 431. Short title. 

Sec. 432. Application to Louisiana parishes designated as disaster areas due to 

Hurricane Katrina or related conditions. 

Sec. 433. Crop disaster assistance. 

Sec. 434. Sugarcane disaster assistance. 
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Sec. 435. Compensation for infrastructure losses. 

Sec. 436. Assistance to dairy and livestock producers. 

Sec. 437. Emergency citrus disaster, nursery crop and christmas tree disaster, 

and strawberry, horticultural crops, fall fruits and vegetables 

disaster programs. 

Sec. 438. Conservation programs. 

Sec. 439. Tree assistance program. 

Sec. 440. Additional funds for Cooperative State Research, Education, and Extension Service. 

Sec. 441. Delta Regional Authority expansion. 

Sec. 442. Water and waste disposal loan and grant programs. 

Sec. 443. Community facilities loan and grant programs. 

Sec. 444. Rural community advancement funds. 

Sec. 445. Regulations. 

Subtitle D—Privately Owned Utility Restoration 

Sec. 461. Short title. 

Sec. 462. Definitions. 

Sec. 463. Privately owned utility disaster relief. 

Sec. 464. Requirements for compensation; regulations. 

Sec. 465. National Energy Infrastructure Zones. 

Sec. 466. Provisions relating to depository institutions and credit unions. 

TITLE V—REBUILDING OF INFRASTRUCTURE 

Subtitle A—Actions by Federal Agencies 

Sec. 501. Pelican Commission. 

Sec. 502. Presidential emergency permitting process. 

Sec. 503. Federal contracting requirement for reconstruction. 

Sec. 504. Continuation of worker payments and other allowable costs under 

Federal contracts. 

Sec. 505. Restoration of telecommunications infrastructure. 

Subtitle B—Economic Development 

Sec. 521. Recovery assistance for Federal and State agencies, businesses, institutions of higher education, and public-private partnerships. 

Sec. 522. Manufacturing extension partnership program. 

Sec. 523. Public telecommunications facilities. 

Sec. 524. Grants for technology and economic development in areas affected by 

Hurricane Katrina. 

Sec. 525. Relief for crawfish industry. 

Sec. 526. NOAA weather radio. 

Sec. 527. Effects of Hurricane Katrina on fish and wildlife. 

Sec. 528. Minority Business Development Agency. 

Sec. 529. Southeast Louisiana Entrepreneurship Development Network. 

Sec. 530. Export assistance program. 

Subtitle C—Transportation 

Sec. 541. Louisiana Department of Transportation and Development. 

Sec. 542. Federal Aviation Administration. 

Sec. 543. Federal Highway Administration. 

Sec. 544. Federal Railroad Administration. 

Sec. 545. Federal Transit Administration. 
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Sec. 546. Maritime Administration. 

Sec. 547. Capital Construction Fund. 

Subtitle D—AmeriCorps Disaster Relief Corps 

Sec. 551. Short title. 

Sec. 552. Definitions. 

Sec. 553. Authority. 

Sec. 554. Establishment of Special AmeriCorps Disaster Relief Corps. 

Sec. 555. Grants to States, cities, organizations; cooperation with Federal agencies. 

Sec. 556. Transfer of funds to the National Service Trust. 

Sec. 557. Authority for third-term benefits and educational award. 

Sec. 558. Administrative expenses. 

Sec. 559. Acceptance of donated services. 

Sec. 560. Grants not subject to annual appropriations limitations. 

Sec. 561. Authority to support programs operated by Federal agencies. 

Sec. 562. Appropriation. 

TITLE VI—HURRICANE PROTECTION AND ENVIRONMENTAL 

RESTORATION 

Subtitle A—Hurricane Protection 

CHAPTER 1—DOMESTIC OFFSHORE ENERGY REINVESTMENT ACT OF 2005 

Sec. 601. Short title. 

Sec. 602. Outer Continental Shelf. 

CHAPTER 2—OFFSHORE FAIRNESS ACT OF 2005 

Sec. 611. Short title. 

Sec. 612. Purposes. 

Sec. 613. Seaward boundary extension. 

Subtitle B—Environmental Protection and Wetlands Restoration 

CHAPTER 1—LOUISIANA RESTORATION STAMP

Sec. 621. Short title. 

Sec. 622. Restoration program. 

CHAPTER 2—LAKE PONTCHARTRAIN BASIN RESTORATION

Sec. 631. Redesignation and extension of program authorization. 

CHAPTER 3—FUNDING

Sec. 641. Environmental Protection Agency. 

Sec. 642. Louisiana Department of Environmental Quality. 

CHAPTER 4—ENVIRONMENTAL REGULATIONS

Sec. 651. Notice to Congress of Presidential waivers. 

Sec. 652. Authority to facilitate reconstruction. 

CHAPTER 5—HISTORIC PRESERVATION FUND

Sec. 661. Historic Preservation Fund. 
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CHAPTER 6—MITIGATION MEASURES

Sec. 671. Mitigation measures. 

TITLE VII—JOBS RETURN AND REPOPULATION INCENTIVES 

Sec. 700. Amendment of 1986 Code. 

Subtitle A—Emergency Tax Relief Measures 

Sec. 700A. Hurricane Katrina Disaster Area. 

CHAPTER I—PENALTY FREE USE OF RETIREMENT FUNDS BY 

NATURAL DISASTER VICTIMS 

Sec. 701. Penalty Free Withdrawals From Retirement Plans for Victims of 

Federally Declared Natural Disasters. 

Sec. 702. Income averaging for disaster-relief distributions related to Hurricane 

Katrina. 

Sec. 703. Recontributions of withdrawals for home purchases cancelled due to 

Hurricane Katrina. 

Sec. 704. Loans from qualified plans to victims of Hurricane Katrina. 

Sec. 705. Provisions relating to plan amendments. 

CHAPTER II—EMPLOYMENT RELIEF 

Sec. 706. Work Opportunity Tax Credit for Hurricane Katrina Employees. 

Sec. 707. Employee retention credit for employers affected by Hurricane 

Katrina. 

CHAPTER III—CHARITABLE GIVING INCENTIVES 

Sec. 711. Temporary Suspension of Limitations on Charitable Contributions. 

Sec. 712. Charitable deduction for contributions of food inventories. 

Sec. 713. Charitable deduction for contributions of book inventories. 

Sec. 714. Additional exemption for housing Hurricane Katrina displaced individuals. 

Sec. 715. Increase in standard mileage rate for charitable use of passenger 

automobile. 

Sec. 716. Mileage reimbursements to charitable volunteers excluded from gross 

income. 

CHAPTER IV—ADDITIONAL TAX RELIEF PROVISIONS 

Sec. 721. Exclusions of Certain Cancellations of Indebtedness for Victims of 

Hurricane Katrina. 

Sec. 722. Suspension of certain limitations on personal casualty losses. 

Sec. 723. Required exercise of authority under section 7508a for tax relief for 

victims of Hurricane Katrina. 

Sec. 724. Special mortgage financing rules for residences located in Hurricane 

Katrina Disaster Area. 

Sec. 725. Extension of replacement period for nonrecognition of gain for property located in Hurricane Katrina Disaster Area. 

Sec. 726. Special rule for determining earned income. 

Sec. 727. Secretarial authority to make adjustments regarding taxpayer and dependency status. 

CHAPTER V—EMERGENCY REQUIREMENT 
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Sec. 731. Emergency Requirement. 

Subtitle II—Additional Tax Incentives 

Sec. 741. Tax benefits for the major disaster area damaged in Hurricane 

Katrina. 

Sec. 742. Premiums for mortgage insurance. 

Sec. 743. Suspension of air transportation excise taxes. 

Sec. 744. Relocation tax credit for victims of Hurricane Katrina. 

Sec. 745. 50-percent income tax holiday. 

Sec. 746. Hurricane Katrina disaster zone restoration tax credit. 

Sec. 747. 5-year carryback of net operating losses and temporary suspension of 

90 percent AMT limit for businesses in Hurricane Katrina disaster zone. 

Sec. 748. Allowance of income tax credit to small businesses whose operations 

were significantly interrupted by Hurricane Katrina. 

Sec. 749. Home purchase by victims of Hurricane Katrina. 

Sec. 750. Expedited refund claims. 

Sec. 751. Application of new market tax credit to investments in community development entities serving areas affected by Hurricane Katrina. 

Sec. 752. Modifications to low-income housing credit. 

Sec. 753. Estate tax relief for Hurricane Katrina vicitms. 

Sec. 754. Issuance of Gulf Opportunity Bonds. 

TITLE VIII—LAW ENFORCEMENT IMPROVEMENTS 

Sec. 801. Definition of units of local government. 

Sec. 802. Special Inspector General for Relief and Reconstruction. 

Sec. 803. General Accountability Office report. 

Sec. 804. Creating Federal crime of interfering with Federal disaster relief efforts. 

Sec. 805. Penalties for fraud. 

Sec. 806. Protecting of volunteers. 

Sec. 807. Leave transfer program in disasters and emergencies. 

1 SEC. 3. TREATMENT OF AMOUNTS APPROPRIATED UNDER 

2 THIS ACT. 

3 (a) EMERGENCY DESIGNATION.—Each amount pro4 vided in this Act is designated as an emergency require5 ment pursuant to section 402 of H. Con. Res. 95 (109th 

6 Congress). 

7 (b) SUPPLEMENT, NOT SUPPLANT, OTHER FUNDS

8 OR ASSISTANCE.—All amounts appropriated under this 

9 Act shall supplement, and not supplant, amounts appro10 priated or made available for relief or assistance relating 
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1 to Hurricane Katrina with respect to the State of Lou2 isiana under any other provision of law. 

3 (c) NO REDUCTION FOR COST REIMBURSEMENT.— 

4 Except as otherwise provided in this Act, none of the 

5 funds appropriated under this Act may be reduced as a 

6 result of cost reimbursement authorized under any section 

7 of the Robert T. Stafford Disaster Relief and Emergency 

8 Assistance Act (42 U.S.C. 5121 et seq.). 

9 (d) NO REQUIRMENT FOR STATE MATCH OR CON10 TRIBUTION.—With respect to any funds appropriated 

11 under this Act to a program that would otherwise require 

12 a State matching payment or contribution (in cash or in 

13 kind), the requirement of such payment or contribution 

14 shall be waived. 

15 TITLE I—EMERGENCY SUPPLE16 MENTAL APPROPRIATIONS 

17 The following sums are appropriated, out of any 

18 money in the Treasury not otherwise appropriated, for the 

19 fiscal year ending September 30, 2005, namely: 

20 Subtitle A—Department of 

21 Defense—Military 

22 MILITARY PERSONNEL 

23 For an additional amount for ‘‘Military Personnel’’, 

24 $82,500,000 to fund the increase in the family separation 

25 allowance payable under section 427 of title 37, United 
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1 States Code: Provided, That the Secretary of Defense may 

2 allocate amounts available to the accounts of the appro3 priate branches of the Armed Forces, as determined by 

4 the Secretary. 

5 OPERATION AND MAINTENANCE 

6 OPERATION AND MAINTENANCE, ARMY

7 For an additional amount for ‘‘Operation and Main8 tenance, Army’’, $15,000,000 for emergency Hurricane 

9 Katrina expenses in Louisiana, to remain available until 

10 September 30, 2006: Provided, That the amount provided 

11 herein is designated as an emergency requirement pursu12 ant to section 402 of H. Con. Res. 95 (109th Congress). 

13 OPERATION AND MAINTENANCE, NAVY

14 For an additional amount for ‘‘Operation and Main15 tenance, Navy’’, $400,000,000 for emergency Hurricane 

16 Katrina expenses in Louisiana, to remain available until 

17 September 30, 2006: Provided, That of the amount pro18 vided under this heading, $70,000,000 shall be available 

19 for SPAWAR Systems Center New Orleans, not to exceed 

20 $50,000,000 of which shall be available to repair and rees21 tablish the capabilities, facilities, missions, functions, and 

22 equipment of the center, including support, maintenance, 

23 operation, and management support activities and enter24 prise information technology integration of existing legacy 

25 and developing Navy Department of Defense manpower, 
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1 personnel, and training functions, and $20,000,000 of 

2 which shall be available for the evacuation, safe haven, and 

3 temporary relocation of Federal contractor personnel and 

4 related equipment and telecommuting expenses: Provided 

5 further, That the Secretary of the Navy and the Secretary 

6 of Defense shall co-locate the Naval Standard Integrated 

7 Personnel System and Defense Integrated Management 

8 Human Resources System program managers with the 

9 Defense Integrated Management Human Resources Sys10 tem program office and development staff at the 

11 SPAWAR Systems Center New Orleans, and shall estab12 lish the center as a central design activity for the develop13 ment, production, and maintenance of all manpower, per14 sonnel, training, and education programs of the Navy: 

15 Provided further, That the amount provided herein is des16 ignated as an emergency requirement pursuant to section 

17 402 of H. Con. Res. 95 (109th Congress). 

18 OPERATION AND MAINTENANCE, MARINE CORPS

19 For an additional amount for ‘‘Operation and Main20 tenance, Marine Corps’’, $10,000,000 for emergency Hur21 ricane Katrina expenses in Louisiana, to remain available 

22 until September 30, 2006: Provided, That the amount pro23 vided herein is designated as an emergency requirement 

24 pursuant to section 402 of H. Con. Res. 95 (109th Con25 gress). 
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1 OPERATION AND MAINTENANCE, DEFENSE-WIDE

2 For an additional amount for ‘‘Operation and Main3 tenance, Defense-Wide’’, $50,000,000 for emergency Hur4 ricane Katrina expenses in Louisiana, to remain available 

5 until September 30, 2006: Provided, That the amount pro6 vided herein is designated as an emergency requirement 

7 pursuant to section 402 of H. Con. Res. 95 (109th Con8 gress). 

9 OPERATION AND MAINTENANCE, ARMY RESERVE

10 For an additional amount for ‘‘Operation and Main11 tenance, Army Reserve’’, $2,500,000 for emergency Hur12 ricane Katrina expenses in Louisiana, to remain available 

13 until September 30, 2006: Provided, That the amount pro14 vided herein is designated as an emergency requirement 

15 pursuant to section 402 of H. Con. Res. 95 (109th Con16 gress). 

17 OPERATION AND MAINTENANCE, NAVY RESERVE

18 For an additional amount for ‘‘Operation and Main19 tenance, Navy Reserve’’, $75,000,000 for emergency Hur20 ricane Katrina expenses in Louisiana, to remain available 

21 until September 30, 2006: Provided, That the amount pro22 vided herein is designated as an emergency requirement 

23 pursuant to section 402 of H. Con. Res. 95 (109th Con24 gress). 
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1 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

2 For an additional amount for ‘‘Operation and Main3 tenance, Air Force Reserve’’, $10,000,000 for emergency 

4 Hurricane Katrina expenses in Louisiana, to remain avail5 able until September 30, 2006: Provided, That the amount 

6 provided herein is designated as an emergency require7 ment pursuant to section 402 of H. Con. Res. 95 (109th 

8 Congress). 

9 OPERATION AND MAINTENANCE, ARMY NATIONAL

10 GUARD

11 For an additional amount for ‘‘Operation and Main12 tenance, Army National Guard’’, $100,000,000 for emer13 gency Hurricane Katrina expenses in Louisiana, to remain 

14 available until September 30, 2006: Provided, That the 

15 amount provided herein is designated as an emergency re16 quirement pursuant to section 402 of H. Con. Res. 95 

17 (109th Congress). 

18 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

19 For an additional amount for ‘‘Operation and Main20 tenance, Air National Guard’’, $100,000,000 for emer21 gency Hurricane Katrina expenses in Louisiana, to remain 

22 available until September 30, 2006: Provided, That the 

23 amount provided herein is designated as an emergency re24 quirement pursuant to section 402 of H. Con. Res. 95 

25 (109th Congress). 
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1 PROCUREMENT 

2 OTHER PROCUREMENT, ARMY

3 For an additional amount for ‘‘Other Procurement, 

4 Army’’, $50,000,000 for emergency Hurricane Katrina ex5 penses of Army units stationed in Louisiana and Lou6 isiana Army National Guard units, to remain available 

7 until September 30, 2007: Provided, That the amount pro8 vided herein is designated as an emergency requirement 

9 pursuant to section 402 of H. Con. Res. 95 (109th Con10 gress). 

11 SHIPBUILDING AND CONVERSION, NAVY

12 For an additional amount for ‘‘Shipbuilding and Con13 version, Navy’’, $5,000,000 for emergency Hurricane 

14 Katrina expenses in Louisiana, to remain available until 

15 September 30, 2007: Provided, That all of such funds 

16 shall be made available for Navy shipbuilding activities in 

17 Louisiana: Provided further, That the amount provided 

18 herein is designated as an emergency requirement pursu19 ant to section 402 of H. Con. Res. 95 (109th Congress). 

20 OTHER PROCUREMENT, AIR FORCE

21 For an additional amount for ‘‘Other Procurement, 

22 Air Force’’, $117,400,000 for emergency Hurricane 

23 Katrina expenses of Air Force units stationed in Lou24 isiana and Louisiana Air National Guard units, to remain 

25 available until September 30, 2007: Provided, That of the 
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1 amount provided under this heading, $17,400,000 shall be 

2 available for the Louisiana Air National Guard for the 

3 procurement of Mobile Air Approach Control Systems for 

4 Air National Guard units: Provided further, That the 

5 amount provided herein is designated as an emergency re6 quirement pursuant to section 402 of H. Con. Res. 95 

7 (109th Congress). 

8 PROCUREMENT, DEFENSE-WIDE

9 For an additional amount for ‘‘Procurement, De10 fense-Wide’’, $250,000,000 for emergency Hurricane 

11 Katrina expenses in Louisiana, to remain available until 

12 September 30, 2007: Provided, That the amount provided 

13 herein is designated as an emergency requirement pursu14 ant to section 402 of H. Con. Res. 95 (109th Congress). 

15 NATIONAL GUARD AND RESERVE EQUIPMENT

16 For an additional amount for ‘‘National Guard and 

17 Reserve Equipment’’, $125,000,000 for emergency Hurri18 cane Katrina expenses of the Louisiana National Guard 

19 and Reserve, to remain available until September 30, 

20 2007: Provided, That the amount provided herein is des21 ignated as an emergency requirement pursuant to section 

22 402 of H. Con. Res. 95 (109th Congress). 
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1 REVOLVING AND MANAGEMENT FUNDS 

2 DEFENSE WORKING CAPITAL FUNDS

3 For an additional amount for ‘‘Defense Working 

4 Capital Funds’’, $4,000,000 for emergency Hurricane 

5 Katrina expenses in Louisiana, to remain available until 

6 expended: Provided, That the amount provided herein is 

7 designated as an emergency requirement pursuant to sec8 tion 402 of H. Con. Res. 95 (109th Congress). 

9 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

10 DEFENSE HEALTH PROGRAM

11 For an additional amount for ‘‘Defense Health Pro12 gram’’, $5,000,000 for emergency Hurricane Katrina ex13 penses in Louisiana, to remain available until expended: 

14 Provided, That the amount provided herein is designated 

15 as an emergency requirement pursuant to section 402 of 

16 H. Con. Res. 95 (109th Congress). 

17 GENERAL PROVISIONS 

18 SEC. 101. AVAILABILITY OF CERTAIN FUNDS.—The 

19 amounts appropriated by this subtitle under the heading 

20 ‘‘OPERATION AND MAINTENANCE’’ shall be avail21 able for the construction of temporary or permanent pub22 lic works, installations, and military, unaccompanied, or 

23 other family housing (and related facilities), including land 

24 acquisition related thereto, needed for response to or re25 covery from the effects of Hurricane Katrina, including 
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1 the housing of servicemembers, their families, and other 

2 individuals displaced by Hurricane Katrina. 

3 SEC. 102. APPLICABILITY OF CERTAIN PROVI4 SIONS.—Members of the National Guard who have been 

5 activated in support of Hurricane Katrina relief and re6 construction efforts shall, for the duration of their service 

7 in support of such efforts, be treated as individuals eligible 

8 for benefits under the following provisions of this Act: 

9 (1) Subtitle B of title IV, related to education 

10 assistance. 

11 (2) Subtitle C of title IV, related to small busi12 ness recovery. 

13 (3) Title VIII, related to tax relief. 

14 SEC. 103 CREDIT TOWARD NATIONAL GUARD AND

15 RESERVE MOBILIZATION REQUIREMENT.—Members of 

16 the National Guard and Reserves who are activated in 

17 support of Hurricane Katrina relief and reconstruction ef18 forts shall receive credit for the duration of their service 

19 in support of such efforts for the purposes of the mobiliza20 tion requirement under the 6-year deployment cycle policy 

21 of the Army National Guard, the Air National Guard, and 

22 the Army Reserve. 

23 SEC. 104. TEMPORARY INCREASE IN FAMILY SEPA24 RATION ALLOWANCE FOR MEMBERS OF THE UNIFORMED

25 SERVICES.— 
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1 (a) TEMPORARY INCREASE.— 

2 (1) INCREASE.—Section 427(a) of title 37, 

3 United States Code, is amended by striking ‘‘$100’’ 

4 and inserting ‘‘$350’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

6 by paragraph (1) shall take effect on August 29, 

7 2005, and shall apply with respect to months begin8 ning on or after August 1, 2005. 

9 (3) TERMINATION.—Effective September 30, 

10 2007, section 427(a) of title 37, United States Code, 

11 is amended by striking ‘‘$350’’ and inserting 

12 ‘‘$250’’. 

13 (b) CONFORMING AMENDMENTS.—Effective as of the 

14 date of the enactment of this Act, the following provisions 

15 of law are repealed: 

16 (1) Subsection (e) of section 427 of title 37, 

17 United States Code. 

18 (2) Paragraph (2) of section 623(b) of the Ron19 ald W. Reagan National Defense Authorization Act 

20 for Fiscal Year 2005 (Public Law 108–375; 118 

21 Stat. 1955). 

22 SEC. 105. CONGRESSIONAL OVERSIGHT.—The Sec23 retary of Defense shall, not later than 90 days after the 

24 date of the enactment of this Act and every 90 days there25 after, submit to the Committees on Appropriations of the 
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•S 1766 IS 

1 Senate and the House of Representatives reports detailing 

2 the allocation and obligation of all funds provided under 

3 this subtitle. 

4 Subtitle B—Military Construction 

5 MILITARY CONSTRUCTION, ARMY

6 For an additional amount for ‘‘Military Construction, 

7 Army’’, $20,000,000 for emergency Hurricane Katrina ex8 penses in Louisiana, to remain available until September 

9 30, 2010: Provided, That the amount provided herein is 

10 designated as an emergency requirement pursuant to sec11 tion 402 of H. Con. Res. 95 (109th Congress). 

12 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

13 For an additional amount for ‘‘Military Construction, 

14 Navy and Marine Corps’’, $5,000,000 for emergency Hur15 ricane Katrina expenses in Louisiana, to remain available 

16 until September 30, 2010: Provided, That the amount pro17 vided herein is designated as an emergency requirement 

18 pursuant to section 402 of H. Con. Res. 95 (109th Con19 gress). 

20 MILITARY CONSTRUCTION, AIR FORCE

21 For an additional amount for ‘‘Military Construction, 

22 Air Force’’, $3,000,000 for emergency Hurricane Katrina 

23 expenses in Louisiana, including the repair and recon24 struction of damaged Air Force Reserve facilities, to re25 main available until September 30, 2010: Provided, That 
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1 the amount provided herein is designated as an emergency 

2 requirement pursuant to section 402 of H. Con. Res. 95 

3 (109th Congress). 

4 MILITARY CONSTRUCTION, DEFENSE-WIDE

5 For an additional amount for ‘‘Military Construction, 

6 Defense-wide’’, $160,000,000 for emergency Hurricane 

7 Katrina expenses in Louisiana, to remain available until 

8 September 30, 2010: Provided, That the funding shall be 

9 made available to the City of New Orleans to implement 

10 the 2005 recommendations of the Defense Base Closure 

11 and Realignment Commission related to the Federal city 

12 development in Algiers, Louisiana: Provided further, That 

13 the amount provided herein is designated as an emergency 

14 requirement pursuant to section 402 of H. Con. Res. 95 

15 (109th Congress). 

16 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

17 For an additional amount for ‘‘Military Construction, 

18 Army National Guard’’, $125,000,000 for emergency 

19 Hurricane Katrina expenses in Louisiana, to remain avail20 able until September 30, 2010: Provided, That the amount 

21 provided herein is designated as an emergency require22 ment pursuant to section 402 of H. Con. Res. 95 (109th 

23 Congress). 
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1 MILITARY CONSTRUCTION, NAVAL RESERVE

2 For an additional amount for ‘‘Military Construction, 

3 Naval Reserve’’, $250,000,000 for emergency Hurricane 

4 Katrina expenses in Louisiana, to remain available until 

5 September 30, 2010: Provided, That the amount provided 

6 herein is designated as an emergency requirement pursu7 ant to section 402 of H. Con. Res. 95 (109th Congress). 

8 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

9 For an additional amount for ‘‘Military Construction, 

10 Air National Guard’’, $125,000,000 for emergency Hurri11 cane Katrina expenses in Louisiana, to remain available 

12 until September 30, 2010: Provided, That the amount pro13 vided herein is designated as an emergency requirement 

14 pursuant to section 402 of H. Con. Res. 95 (109th Con15 gress). 

16 FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE

17 CORPS

18 For an additional amount for ‘‘Family Housing Con19 struction, Navy and Marine Corps’’, $20,000,000 to repair 

20 damage to Navy, Naval Reserve, Marine Corps, and Ma21 rine Corps Reserve housing and related facilities in Lou22 isiana sustained as a result of Hurricane Katrina, to re23 main available until September 30, 2010: Provided, That 

24 the amount provided herein is designated as an emergency 
22 

•S 1766 IS 

1 requirement pursuant to section 402 of H. Con. Res. 95 

2 (109th Congress). 

3 FAMILY HOUSING CONSTRUCTION, AIR FORCE

4 For an additional amount for ‘‘Family Housing Con5 struction, Air Force’’, $20,000,000 to repair damage to 

6 Air Force, Air National Guard, and Air Reserve housing 

7 and related facilities in Louisiana sustained as a result 

8 of Hurricane Katrina, to remain available until September 

9 30, 2010: Provided, That the amount provided herein is 

10 designated as an emergency requirement pursuant to sec11 tion 402 of H. Con. Res. 95 (109th Congress). 

12 FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

13 For an additional amount for ‘‘Family Housing Con14 struction, Defense-wide’’, $20,000,000 for emergency 

15 Hurricane Katrina expenses in Louisiana, to remain avail16 able until expended: Provided, That the amount provided 

17 herein is designated as an emergency requirement pursu18 ant to section 402 of H. Con. Res. 95 (109th Congress). 

19 GENERAL PROVISIONS

20 LAND CONVEYANCE, NAVAL SUPPORT ACTIVITY (EAST

21 BANK), NEW ORLEANS. 

22 SEC. 101. (a) CONVEYANCE AUTHORIZED.—The Sec23 retary of the Navy shall convey to the City of New Orle24 ans, Louisiana, or the Port of New Orleans, Louisiana (in 

25 this section referred to as the ‘‘City’’ and ‘‘Port Author-
23 

•S 1766 IS 

1 ity’’, respectively), all right, title, and interest of the 

2 United States in and to a parcel of real property, including 

3 any improvements and facilities thereon, consisting of all 

4 acreage at the Naval Support Activity (east bank of the 

5 Mississippi River), New Orleans, Louisiana, for the pur6 pose of facilitating the development and expansion of the 

7 City or Port Authority. 

8 (b) DESCRIPTION OF REAL PROPERTY.—The exact 

9 acreage and legal description of the real property to be 

10 conveyed under subsection (a) shall be determined by a 

11 survey satisfactory to the Secretary. The Secretary shall 

12 be responsible for the cost of the survey. 

13 (c) ADDITIONAL TERMS AND CONDITIONS.—The 

14 Secretary may require such additional terms and condi15 tions in connection with the conveyance under subsection 

16 (a) as the Secretary considers appropriate to protect the 

17 interests of the United States. 

18 SEC. 102. CONGRESSIONAL OVERSIGHT.—The Sec19 retary of Defense shall, not later than 90 days after the 

20 date of the enactment of this Act and every 90 days there21 after, submit to the Committees on Appropriations of the 

22 Senate and the House of Representatives reports detailing 

23 the allocation and obligation of all military construction 

24 and family housing funds provided under this subtitle. 
24 

•S 1766 IS 

1 Subtitle C—Department of 

2 Veterans Affairs 

3 VETERANS HEALTH ADMINISTRATION

4 MEDICAL SERVICES

5 For an additional amount for ‘‘Medical Services’’, 

6 $1,000,000,000 for increased medical services due to Hur7 ricane Katrina, to remain available until expended: Pro8 vided, That the Secretary of Veterans Affairs may transfer 

9 the funds herein to subaccounts in the Veterans Health 

10 Administration and Departmental Administration ac11 counts for costs incurred for evacuation, emergency re12 pairs, reconstructional repair efforts, medical services, ad13 ministrative services, and general operating costs: Pro14 vided further, That upon a determination that all or part 

15 of the funds so transferred from this appropriation are 

16 not necessary for the purposes provided herein, such 

17 amounts may be transferred back to this appropriation: 

18 Provided further, That the Secretary of Veterans Affairs 

19 shall submit a report no later than 30 days after the end 

20 of each fiscal quarter to the Congressional Veterans Com21 mittees summarizing the details of the transfer of funds. 
25 

•S 1766 IS 

1 DEPARTMENTAL ADMINISTRATION

2 CONSTRUCTION, MAJOR PROJECTS

3 For an additional amount for major construction 

4 projects, $500,000,000 for the reconstruction/repair of the 

5 New Orleans Regional VA Hospital.** 

6 GENERAL PROVISIONS

7 SEC. 106. Health Care and Services for Veterans Af8 fected by Hurricane Katrina. 

9 (a) DEFINITIONS.—In this section: 

10 (1) The term ‘‘close proximity’’, means not 

11 more than 30 miles from the residence of the vet12 eran. 

13 (2) The term ‘‘priority 8 veteran affected by 

14 Hurricane Katrina’’ means any veteran affected by 

15 Hurricane Katrina who, as of August 29, 2005, 

16 would have been treated as a veteran covered by 

17 paragraph (8) of section 1705(a) of title 38, United 

18 States Code, for purposes of enrollment in the sys19 tem of annual patient enrollment of the Department 

20 of Veterans Affairs under such section. 

21 (3) The term ‘‘specialized medical care’’ means 

22 any medical care for a veteran that is not offered at 

23 a Department of Veterans Affairs facility in close 

24 proximity. 

25 (4) The term ‘‘veteran affected by Hurricane 

26 Katrina’’ means any veteran who, as of August 29, 
26 

•S 1766 IS 

1 2005, resided in the catchment region of the Depart2 ment of Veterans Affairs medical center in New Or3 leans, Louisiana. 

4 (b) REQUIREMENT FOR HOSPITAL CARE AND MED5 ICAL SERVICES FOR PRIORITY 8 VETERANS AFFECTED BY

6 HURRICANE KATRINA.— 

7 (1) REQUIREMENT.—The Secretary of Veterans 

8 Affairs shall furnish hospital care and medical serv9 ices which the Secretary determines to be needed to 

10 each priority 8 veteran affected by Hurricane 

11 Katrina as if such veteran were a veteran described 

12 by section 1710(a)(2) of title 38, United States 

13 Code. 

14 (2) ENHANCED ENROLLMENT PRIORITY.—For 

15 purposes of furnishing hospital care and medical 

16 services under paragraph (1), the Secretary shall 

17 deem each priority 8 veteran affected by Hurricane 

18 Katrina, upon the date of presentation of such vet19 eran to the Department of Veterans Affairs for such 

20 care and services, to have enrolled in the system of 

21 annual patient enrollment of the Department under 

22 section 1705(a) of title 38, United States Code, on 

23 the first day of the current year of such system in 

24 which such date falls. 
27 

•S 1766 IS 

1 (c) PROHIBITION ON COLLECTION OF COPAYMENTS

2 FOR VETERANS AFFECTED BY HURRICANE KATRINA.— 

3 In furnishing hospital care and medical services to any 

4 veteran affected by Hurricane Katrina, the Secretary shall 

5 not collect from or with respect to such veteran any pay6 ment for such care and services otherwise required under 

7 any provision of law, including any copayment for medica8 tions otherwise required under section 1722A of title 38, 

9 United States Code. 

10 (d) SPECIALIZED MEDICAL CARE.—Notwithstanding 

11 any other law, any veteran affected by Hurricane Katrina 

12 may receive specialized medical care from a Department 

13 of Veterans Affairs medical facility that is not in close 

14 proximity to the residence of the veteran. 

15 (e) SUNSET PROVISIONS.— 

16 (1) ENHANCED ENROLLMENT AND COPAYMENT

17 WAIVER.—Subsections (b) and (c) shall be effective 

18 during the 6-month period beginning on the date of 

19 enactment of this Act. 

20 (2) SPECIALIZED MEDICAL CARE.—Subsection 

21 (d) shall be effective during the 1-year period begin22 ning on the date of enactment of this Act. 
28 

•S 1766 IS 

1 Subtitle D—Department of 

2 Commerce 

3 NATIONAL OCEANIC AND ATMOSPHERIC

4 ADMINISTRATION

5 FISHERIES DISASTER ASSISTANCE

6 In addition to amounts appropriated or otherwise 

7 made available for such purpose, $150,000,000, to remain 

8 available until expended, for a direct, lump-sum grant to 

9 the Louisiana Department of Wildlife and Fisheries for 

10 direct grants to Louisiana harvesters and vessel owners 

11 to provide replacement of the dockside values for all fish12 ery resources in fisheries impacted by Hurricane Katrina: 

13 Provided, That the Secretary of Commerce shall make 

14 such amount available to the Louisiana Department of 

15 Wildlife and Fisheries not more than 30 days after the 

16 date of enactment of this Act and may not expend more 

17 than 2 percent of such amount for administration, tech18 nical assistance, and operation related to such grant. 

19 MENHADEN FISHERIES RECOVERY

20 In addition to amounts appropriated or otherwise 

21 made available for such purpose, $14,000,000, to remain 

22 available until expended, for a direct, lump-sum grant to 

23 the Louisiana Department of Wildlife and Fisheries for 

24 direct grants to Louisiana harvesters and vessel owners 
29 

•S 1766 IS 

1 to provide replacement for the dockside values for the 

2 menhaden fisheries impacted by Hurricane Katrina. 

3 LOUISIANA OYSTER RECOVERY

4 In addition to amounts appropriated or otherwise 

5 made available for such purpose, $90,000,000, to remain 

6 available until expended, for a direct, lump-sum grant to 

7 the Louisiana Oyster Task Force for the complete reha8 bilitation of public and private oyster reefs under the juris9 diction of Louisiana that were impacted by Hurricane 

10 Katrina: Provided, That of such amount, $250,000 shall 

11 be made available for oyster hatcheries in Louisiana: Pro12 vided further, That of such amount $8,000,000 shall be 

13 made available for oyster lease resurveying and oyster 

14 lease boundaries and for oyster lease equipment and facili15 ties. 

16 FISHERIES INFRASTRUCTURE RECOVERY

17 In addition to amounts appropriated or otherwise 

18 made available for such purpose, $150,000,000, to remain 

19 available until expended, to for the establishment of stra20 tegically located emergency fisheries infrastructure facili21 ties to provide the dockside infrastructure required for the 

22 delivery of fish products to market in all fisheries impacted 

23 by Hurricane Katrina. 

24 LOUISIANA MARINE RESEARCH RECOVERY

25 In addition to amounts appropriated or otherwise 

26 made available for such purpose, $14,000,000, to remain 
30 

•S 1766 IS 

1 available until expended, for a direct, lump-sum grant to 

2 the Louisiana Department of Wildlife and Fisheries for 

3 the replacement of coastal and marine research facilities 

4 impacted by Hurricane Katrina. 

5 SEAFOOD MARKETING

6 In addition to amounts appropriated or otherwise 

7 made available for such purpose, $35,000,000, to remain 

8 available until expended, for a direct, lump-sum grant to 

9 the Louisiana Seafood Promotion and Marketing Board 

10 to rebuild markets for seafood products in fisheries im11 pacted in Hurricane Katrina. 

12 LOUISIANA LICENSE RENEWAL

13 In addition to amounts appropriated or otherwise 

14 made available for such purpose, $14,000,000, to remain 

15 available until expended, for a direct, lump-sum grant to 

16 the Louisiana Department of Wildlife and Fisheries to 

17 provide license renewal fees for commercial or recreational 

18 fishing license holders and to provide oyster lease rent or 

19 renewal fees. 

20 FISHERIES HABITAT

21 In addition to amounts appropriated or otherwise 

22 made available for such purpose, $5,000,000, to remain 

23 available until expended, to restore and rehabilitate 

24 marsh, nursery habitat for fish, shrimp, and crabs in Lou25 isiana. 
31 

•S 1766 IS 

1 SEVERE WEATHER FORECASTING AND WARNING

2 In addition to amount appropriated or otherwise 

3 made available for such purpose, $4,000,000, to remain 

4 available until expended, for the National Weather Service 

5 to ensure continued weather forecasting services in areas 

6 that could be impacted by hurricanes and other severe 

7 coastal weather events, including floods: Provided, That 

8 such funds should be made available to the South Regional 

9 Weather Center for hurricane forecasting and data deliv10 ery during an emergency. 

11 LOUISIANA STATE UNIVERSITY HURRICANE CENTER

12 In addition to amount appropriated or otherwise 

13 made available for such purpose, $5,000,000, to remain 

14 available until expended, to implement an emergency re15 sponse decision support system and expert guidance that 

16 is capable of rapid deployment to support emergency re17 sponse and recovery activities, including scalable hurricane 

18 response capabilities, in-place resources and readiness, in19 tegrated modeling and information delivery systems, pre20 defined inventories of domain experts and resources, and 

21 an infrastructure that my be adopted in all regions of the 

22 Eastern United States that are impacted hurricanes and 

23 the Caribbean region. Such system shall be integrated 

24 with Federal and State response planning and shall be de25 veloped in cooperation with universities in Louisiana. 
32 

•S 1766 IS 

1 WAIVER OF FEDERAL FISHERIES LAWS AND

2 REGULATIONS

3 The Secretary of Commerce shall waive the provisions 

4 of any Federal law or regulation that requires the protec5 tion of endangered or otherwise protected species in the 

6 immediate waters impacted by Hurricane Katrina. Such 

7 waiver shall be effective for a 1-year period beginning on 

8 a date determined by the Secretary, in consultation with 

9 the head of the Louisiana Department of Wildlife and 

10 Fisheries. 

11 EMERGENCY DESIGNATION

12 The amounts provided in this subtitle are designated 

13 as an emergency requirement pursuant to section 402 of 

14 H. Con. Res. 95 (109th Congress). 

15 Subtitle E—Department of 

16 Homeland Security 

17 GENERAL PROVISIONS

18 SEC. 111. PAYMENT OF BASE WAGES.—Notwith19 standing any provision of the Robert T. Stafford Disaster 

20 Relief and Emergency Assistance Act (42 U.S.C. 5121 et 

21 seq.), the President shall pay the base wages and overtime 

22 wages for any employee of a parish of the State of Lou23 isiana for any activity carried out under a recovery effort 

24 relating to Hurricane Katrina or a related condition. 

25 SEC. 112. IMMEDIATE DISASTER RELIEF FUND26 ING.— 
33 

•S 1766 IS 

1 (a) EMERGENCY MANAGEMENT PERFORMANCE

2 GRANTS.— 

3 (1) IN GENERAL.—In addition to amounts 

4 available as of the date of enactment of this Act for 

5 the emergency management performance grant pro6 gram of the Department of Homeland Security, not7 withstanding any other provision of law, not later 

8 than 30 days after the date of enactment of this 

9 Act, out of any funds in the Treasury not otherwise 

10 appropriated, the Secretary of the Treasury shall 

11 transfer to the Secretary of Homeland Security, to 

12 provide increased amounts to States under that pro13 gram for use in responding to a major disaster relat14 ing to Hurricane Katrina declared by the President 

15 on August 29, 2005, in accordance with section 401 

16 of the Robert T. Stafford Disaster Relief and Emer17 gency Assistance Act (42 U.S.C. 5170), 

18 $91,200,000, to remain available until expended: 

19 Provided, That such amounts are used for construc20 tion of an Emergency Operations Center to provide 

21 immediate command centers and communication 

22 after a disaster or emergency event in each of the 

23 following parishes, each of which shall receive 

24 $4,800,000 from such amounts: Jefferson, St. Tam25 many, Washington, Tangipahoa, Livingston, St. 
34 

•S 1766 IS 

1 Bernard, Plaquemine, Lafourche, Terrebonne, St. 

2 Mary, St. Martin, Lafayette, Calcasieu, Cameron, 

3 Vermillion. St. Charles, St. John, Iberia, and Ascen4 sion. 

5 (2) RECEIPT AND ACCEPTANCE.—The Sec6 retary of Homeland Security shall be entitled to re7 ceive, shall accept, and shall use to carry out this 

8 subsection the funds transferred under paragraph 

9 (1), without further appropriation. 

10 (b) URBAN SEARCH AND RESCUE AND NATURAL

11 DISASTER MEDICAL SYSTEMS.— 

12 (1) IN GENERAL.—In addition to amounts 

13 available as of the date of enactment of this Act for 

14 urban search and rescue systems, and natural dis15 aster medical systems, of the Federal Emergency 

16 Management Agency, notwithstanding any other 

17 provision of law, not later than 30 days after the 

18 date of enactment of this Act, out of any funds in 

19 the Treasury not otherwise appropriated, the Sec20 retary of the Treasury shall transfer to the Sec21 retary of Homeland Security, to provide increased 

22 amounts for those teams for use in responding to a 

23 major disaster relating to Hurricane Katrina de24 clared by the President on August 29, 2005, in ac25 cordance with section 401 of the Robert T. Stafford 
35 

•S 1766 IS 

1 Disaster Relief and Emergency Assistance Act (42 

2 U.S.C. 5170), $2,500,000, to remain available until 

3 expended. Provided, That up to $1,000,000,000 may 

4 be transferred to and merged with ‘‘Emergency Pre5 paredness and Response, Public Health Programs’’ 

6 for the National Disaster Medical System to support 

7 medical care as authorized by section 2811 of the 

8 Public Health Service Act (42 U.S.C. 300hh–11): 

9 Provided further, That $15,000,000 shall be trans10 ferred to and merged with ‘‘Departmental Manage11 ment and Operations, Office of Inspector General’’ 

12 for necessary expenses of the Office of Inspector 

13 General for audits and investigations as authorized 

14 by law for Hurricane Katrina response and recovery 

15 activities: Provided further, That the amounts pro16 vided herein are designated as an emergency re17 quirement pursuant to section 402 of H. Con. Res. 

18 95 (109th Congress). 

19 (2) RECEIPT AND ACCEPTANCE.—The Sec20 retary of Homeland Security shall be entitled to re21 ceive, shall accept, and shall use to carry out this 

22 subsection the funds transferred under paragraph 

23 (1), without further appropriation. 
36 

•S 1766 IS 

1 SEC. 113. ASSISTANCE TO FIREFIGHTERS.— 

2 $250,000,000 for assistance to firefighters for hurricane 

3 related expenses, available until expended. 

4 SEC. 114. (a) COMMUNITY DISASTER LOANS.—Not5 withstanding any other provision of law, no limitation on 

6 the amount or percentage of assistance that may be pro7 vided in the form of a community disaster loan under sec8 tion 417(b) of the Robert T. Stafford Disaster Relief and 

9 Emergency Assistance Act (42 U.S.C. 5184(b)) shall 

10 apply to any community disaster loan made under section 

11 417 of that Act to assist any local government in which 

12 a major disaster relating to Hurricane Katrina was de13 clared to exist by the President on August 29, 2005, in 

14 accordance with section 401 of that Act (42 U.S.C. 5170). 

15 (b) ALLOCATION.—Of funds appropriated for com16 munity disaster loans in fiscal year 2006 under section 

17 417(b) of the Robert T. Stafford Disaster Relief and 

18 Emergency Assistance Act (42 U.S.C. 5184(b)), not less 

19 than— 

20 (1) $450,000,000 shall be used for loans to 

21 local governments located in Orleans Parish, Lou22 isiana; 

23 (2) $250,000,000 shall be used for loans to 

24 local governments located in Jefferson Parish, Lou25 isiana; 
37 

•S 1766 IS 

1 (3) $300,000,000 shall be used for loans to 

2 local governments located in St. Bernard Parish, 

3 Louisiana; and 

4 (4) $25,000,000 shall be used for loans to local 

5 governments located in Plaquemines Parish, Lou6 isiana. 

7 (5) $9,000,000 shall be used for loans to local 

8 government in St. Tammany Parish, Louisian. 

9 (c) DEFINITION.—In this section, the term ‘‘local 

10 government’’ means any local government, as that term 

11 is defined in section 102(6) of the Robert T. Stafford Dis12 aster Relief and Emergency Assistance Act (42 U.S.C. 

13 5122(6)), that has suffered a loss of tax or other revenue. 

14 Subtitle F—Department of Health 

15 and Human Services 

16 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

17 ADMINISTRATION

18 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

19 For an additional amount to the Louisiana Depart20 ment of Health and Hospitals, Office of Mental Health 

21 for carrying out titles V and XIX of the Public Health 

22 Service Act with respect to substance abuse and mental 

23 health services in Louisiana, $400,000,000 for emergency 

24 hurricane expenses, to remain available until September 

25 30, 2006: Provided, That from such amount, 
38 

•S 1766 IS 

1 $100,000,000 shall be made available for psychological 

2 trauma response early intervention, prevention, and dis3 order treatment by culturally competent counselors and 

4 mental health professionals for children who are 0 to 5 

5 years of age: Provided further, That from such amount, 

6 $100,000,000 shall be made available to provide funds in 

7 consultation with the Louisiana Department of Education 

8 for the assessment, response, and treatment of the mental 

9 health needs of school age children with services to be pro10 vided by culturally competent counselors and mental 

11 health professionals: Provided further, That from such 

12 amount, $100,000,000 shall be made available to increase 

13 funding for psychological trauma response early interven14 tion, prevention, and disorder treatment and suicide pre15 vention by culturally competent counselors and mental 

16 health professionals: Provided further, That from such 

17 amount, $100,000,000 shall be made available to be kept 

18 separate and apart from mental health funds allocated to 

19 the Louisiana State agency for substance abuse for sub20 stance abuse assessment, early intervention, prevention, 

21 and treatment. 

22 CENTERS FOR DISEASE CONTROL AND PREVENTION

23 DISEASE CONTROL, RESEARCH, AND TRAINING

24 For an additional amount for the Centers for Disease 

25 Control and Prevention, $300,000,000, to remain avail-
39 

•S 1766 IS 

1 able until September 30, 2006: Provided, That from such 

2 amount, $50,000,000 shall be made available to the Envi3 ronmental Health Lab/Bio Monitoring Fund for evacuees, 

4 rescue workers, and others: Provided further, That from 

5 such amount, $50,000,000 shall be made available to the 

6 Environmental Health Tracking Network for ongoing pub7 lic health tracking and registries as a result of Hurricane 

8 Katrina: Provided further, That from such amount, 

9 $100,000,000 shall be made available for Public Health 

10 Improvement to rebuild the Louisiana public health infra11 structure affected by Hurricane Katrina: Provided further, 

12 That $100,000,000 shall be made available to carry out 

13 mosquito abatement activities under section 317S of the 

14 Public Health Service Act for States affected by Hurri15 cane Katrina. 

16 ADMINISTRATION FOR CHILDREN AND FAMILIES

17 LOW INCOME HOME ENERGY ASSISTANCE

18 For an additional amount for making payments 

19 under title XXVI of the Omnibus Budget Reconciliation 

20 Act of 1981 (42 U.S.C. 8621 et seq.), $36,000,000, which 

21 shall be made available for payments to Louisiana, and 

22 which shall be made available for obligation in fiscal year 

23 2005 and remain available until expended. 

24 SOCIAL SERVICES BLOCK GRANT

25 For an additional amount for making grants to the 

26 State of Louisiana pursuant to section 2002 of the Social 
40 

•S 1766 IS 

1 Security Act, $13,000,000, which shall be made available 

2 for obligation in fiscal year 2006. 

3 CHILDREN AND FAMILIES SERVICES PROGRAMS

4 For an additional amount for making payments to 

5 the State of Lousiana for carrying out the provisions of 

6 subpart 1 of part B of title IV of the Social Security Act, 

7 $11,000,000. Such payments shall be used for the purpose 

8 of providing family reunification and family support serv9 ices for children who reside or resided in the State of Lou10 isiana in an area in which a major disaster relating to 

11 Hurricane Katrina was declared by the President under 

12 section 401 of the Robert T. Stafford Disaster Relief and 

13 Emergency Assistance Act (42 U.S.C. 5170), including 

14 such children who are receiving foster care maintenance 

15 payments under section 472 of the Social Security Act (42 

16 U.S.C. 672), adoption assistance payments under section 

17 473 of such Act (42 U.S.C. 673), or are determined by 

18 the State to be otherwise in need of child welfare services. 

19 For an additional amount for making payments to 

20 the State of Louisiana to carry out the John H. Chafee 

21 Foster Care Independence Program pursuant to section 

22 477 of the Social Security Act, $1,358,000, which shall 

23 be made available for obligation in fiscal year 2006: 

24 PROMOTING SAFE AND STABLE FAMILIES

25 For an additional amount for making payments to 

26 the State of Louisiana for carrying out the provisions of 
41 

•S 1766 IS 

1 subpart 2 of part B of title IV of the Social Security Act, 

2 $26,000,000. 

3 OFFICE OF THE SECRETARY

4 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY

5 FUND

6 For emergency and other services, $1,000,000,000 to 

7 be made available by the Secretary of Health and Human 

8 Services to provide funds to the Louisiana Department of 

9 Health and Hospitals, to remain available until December 

10 31, 2006: Provided, That such funds shall not have any 

11 affect on any funding available from the Federal Emer12 gency Management Agency to Louisiana: Provided further, 

13 That from such amount, $500,000,000 shall be made 

14 available to be used, in consultation with the Department 

15 of Health and Human Services, for emergency grants and 

16 reimbursements awarded by the Louisiana Department of 

17 Health and Hospitals for health care suppliers and pro18 viders that incurred healthcare-related expenses or lost 

19 revenues as a result of their response to the public health 

20 emergency resulting from Hurricane Katrina, including 

21 funding for additional medical personnel, hospital equip22 ment, community health centers, social services, disabled 

23 or elderly care, and emergency rooms: Provided further, 

24 That from such amount, $500,000,000 shall be made 

25 available to be used, in consultation with the Department 
42 

•S 1766 IS 

1 of Health and Human Services, for grants for the funding 

2 of activities for immediate emergency needs, including re3 building, repairing, and restoration of healthcare infra4 structures, including offices, clinics, community health 

5 centers, and hospitals, with a priority given to requests 

6 involving those hospitals that maintained operations 

7 through Hurricane Katrina and are still in operation as 

8 of the date of enactment of this Act and with special con9 sideration given to requests relating to the immediate 

10 emergency needs of hospitals, physicians’ offices, commu11 nity health centers, and clinics, in that order. 

12 CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT

13 For an additional amount for making payments to 

14 the State of Louisiana to carry out activities authorized 

15 under the Child Care and Development Block Grant Act 

16 of 1990 (42 U.S.C. 9858 et seq.) for individuals impacted 

17 by Hurricane Katrina, $100,000,000, to remain available 

18 until expended. 

19 Subtitle G—Department of Housing 

20 and Urban Development 

21 PUBLIC AND INDIAN HOUSING 

22 TENANT-BASED RENTAL ASSISTANCE

23 For an additional amount for ‘‘Tenant-Based Rental 

24 Assistance’’ for annual contributions contracts for tenant25 based assistance under section 8 of the United States 

26 Housing Act of 1937 (42 U.S.C. 1437f) for use only for 
43 

•S 1766 IS 

1 assistance for families displaced as a result of Hurricane 

2 Katrina, $3,500,000,000, to remain available until ex3 pended: Provided, That notwithstanding any other provi4 sion of law, the entire amount provided herein shall be 

5 available immediately and shall not be subject to appor6 tionment for the purpose of chapter 15 of title 31, United 

7 States Code: Provided further, That the amount provided 

8 herein is designated as an emergency requirement pursu9 ant to section 402 of H. Con. Res. 95 (109th Congress). 

10 COMMUNITY PLANNING AND DEVELOPMENT 

11 COMMUNITY DEVELOPMENT FUND

12 For an additional amount for ‘‘Community Develop13 ment Fund’’ for activities authorized under title I of the 

14 Housing and Community Development Act of 1974, for 

15 use only for disaster relief, long-term recovery, and mitiga16 tion in communities affected by Hurricane Katrina, except 

17 those activities reimbursable by the Federal Emergency 

18 Management Agency or available through the Small Busi19 ness Administration, and for reimbursement for expendi20 tures incurred from the regular Community Development 

21 Block Grant formula allocation used to achieve these same 

22 purposes, $50,000,000,000, to remain available until ex23 pended: Provided, That of the amount provided under this 

24 heading, the Secretary of Housing and Urban Develop25 ment may use up to $5,000,000,000 under the HOME 
44 

•S 1766 IS 

1 Investment Partnerships Program for assistance under 

2 title II of the Cranston-Gonzalez National Affordable 

3 Housing Act in areas affected by Hurricane Katrina: Pro4 vided further, That of the amount provided under this 

5 heading, the Secretary of Housing and Urban Develop6 ment may use up to $5,000,000,000 under the HOPE VI 

7 program in areas affected by Hurricane Katrina: Provided 

8 further, That the amount provided herein is designated as 

9 an emergency requirement pursuant to section 402 of H. 

10 Con. Res. 95 (109th Congress): Provided further, for ex11 penses to assist businesses in Louisiana during recovery 

12 from and reconstruction of facilities damaged by Hurri13 cane Katrina, for ‘‘Louisiana Business Redevelopment 

14 Fund’’, $10,000,000,000, to remain available until ex15 pended: Provided, That the State of Louisiana in conjunc16 tion with local authorities in the additional disaster par17 ishes, shall: (1) establish a Bayou State Redevelopment 

18 Corporation (‘‘the corporation’’); (2) distribute the funds 

19 provided for the ‘‘Louisiana Business Redevelopment 

20 Fund’’ through the Bayou State Redevelopment Corpora21 tion; (3) within 90 days of the date of enactment of this 

22 Act, issue the initial criteria and requirements necessary 

23 to accept applications from individuals, nonprofits, and 

24 small businesses for economic losses from the August 28, 

25 2005, impact of Hurricane Katrina; and (4) begin proc-
45 

•S 1766 IS 

1 essing such applications: Provided further, That the cor2 poration shall expeditiously respond to any application 

3 from an individual, nonprofit, or small business for eco4 nomic losses under this heading: Provided further, That 

5 of the total amount made available for the ‘‘Louisiana 

6 Business Redevelopment Fund’’, no less than 

7 $750,000,000 shall be made available for individuals, non8 profits, or small businesses described, with a limit of 

9 $750,000 per small business for economic losses: Provided 

10 further, That amounts made available in the previous pro11 viso shall only be available for individuals, nonprofits, or 

12 small businesses located in communities within the State 

13 of Louisiana designated by the President as a major dis14 aster under the Robert T. Stafford Disaster Relief and 

15 Emergency Assistance Act, in connection with Hurricane 

16 Katrina: Provided further, That, of the amount provided 

17 in this paragraph, $1,000,000,000 shall be used for a pro18 gram to aid the travel and tourism industry. 

19 HOUSING PROGRAMS 

20 MORTGAGE RELIEF

21 For mortgage relief for individuals affected by Hurri22 cane Katrina, $5,000,000,000, to remain available until 

23 March 30, 2007: Provided, That the Secretary of Housing 

24 and Urban Development shall consult with the Adminis25 trator of the Small Business Administration prior to 
46 

•S 1766 IS 

1 issuing such funds to an individual: Provided further, That 

2 the amount provided herein is designated as an emergency 

3 requirement pursuant to section 402 of H. Con. Res. 95 

4 (109th Congress). 

5 Subtitle H—Department of 

6 Transportation 

7 TRANSPORTATION PROGRAMS

8 For an additional amount for necessary expenses to 

9 carry out the projects and activities described in title V— 

10 (1) $7,000,000,000 shall be available to the 

11 Louisiana Department of Transportation and Devel12 opment for construction, maintenance, and repair of 

13 evacuation and energy supply routes in the State of 

14 Louisiana; 

15 (2) $5,000,000,000 shall be available to the 

16 Louisiana Department of Transportation and Devel17 opment for expansion of road and transit capacity; 

18 (3) $1,000,000,000 shall be available to the 

19 Port of New Orleans, Louisiana, for restoration, 

20 protection, and improvement of infrastructure; 

21 (4) $1,000,000,000 shall be available to the 

22 Louisiana Department of Transportation and Devel23 opment to provide grants for restoration, protection, 

24 and improvement of infrastructure to ports other 

25 than the Port of New Orleans; 
47 

•S 1766 IS 

1 (5) $71,800,000 shall be available to the Fed2 eral Aviation Administration for reimbursements to 

3 the Louis Armstrong New Orleans International Air4 port; 

5 (6) $2,900,000,000 shall be available for the 

6 emergency relief program of the Department of 

7 Transportation under section 125 of title 23, United 

8 States Code; 

9 (7) $20,000,000 shall be available for the estab10 lishment and implementation of comprehensive de11 velopment plans for development districts in the 

12 State of Louisiana; 

13 (8) $36,000,000 shall be available to the Fed14 eral Railroad Administration for reimbursements to 

15 the New Orleans Public Belt Railroad for antici16 pated revenue shortfalls due to Hurricane Katrina; 

17 (9) $190,000,000 shall be available to the New 

18 Orleans Regional Transit Authority for revenues lost 

19 as a consequence of Hurricane Katrina; and 

20 (10) $150,000,000 shall be available to the 

21 Maritime Administration of the Department of 

22 Transportation for the cost of guaranteed loans. 

23 The amounts provided under this heading are des24 ignated as an emergency requirement pursuant to section 
48 

•S 1766 IS 

1 402 of the conference report to accompany H. Con. Res. 

2 95 (109th Congress). 

3 Subtitle I—Department of Energy 

4 ENERGY CONSERVATION

5 For an additional amount for necessary expenses in 

6 carrying out the weatherization program established under 

7 part A of title IV of the Energy Conservation and Produc8 tion Act (42 U.S.C. 6861 et seq.), $11,000,000, which 

9 shall be made available for such expenses in Louisiana, 

10 and shall remain available until expended. 

11 Subtitle J—Department of 

12 Education 

13 TEACHER INCENTIVE FUND

14 For an additional amount for a teacher incentive 

15 fund, $750,000,000 to remain available until expended: 

16 Provided That such funds shall be made available to the 

17 Louisiana Department of Education, to create a teacher 

18 incentive fund to provide assistance to all teachers who 

19 were employed on August 29, 2005, in Louisiana and af20 fected by Hurricane Katrina, as directed by the Louisiana 

21 Department of Education, which funds shall remain avail22 able to the Louisiana Department of Education until ex23 pended: Provided further, That the amount of any such 

24 funds to be provided to a teacher shall be reduced by any 

25 amount the teacher receives under section 410(a) of the 
49 

•S 1766 IS 

1 Robert T. Stafford Disaster Relief and Emergency Assist2 ance Act (42 U.S.C. 5177(a)), for temporary extended un3 employment compensation under subtitle E of title III, for 

4 temporary employment, or under any other Federal pro5 gram: Provided further, That such funds shall only be 

6 made available to a teacher if the teacher enters into a 

7 written agreement with the Louisiana Department of Edu8 cation to return to employment at the teacher’s home 

9 school in Louisiana once the return is determined appro10 priate by the Louisiana Department of Education. 

11 PROJECT SERV

12 For an additional amount for Project Serv under the 

13 Safe and Drug-Free Schools and Communities Act (20 

14 U.S.C. 7101 et seq.) for individuals impacted by Hurri15 cane Katrina, $5,000,000 to remain available until ex16 pended for Hurricane Katrina affected Louisiana commu17 nities. 

18 GENERAL PROVISIONS 

19 SEC. 120. SUPPORT FOR ELEMENTARY AND SECONDARY 

20 SCHOOLS WITH A LARGE INFLUX OF DIS21 PLACED STUDENTS. 

22 (a) PURPOSE.—It is the purpose of this section— 

23 (1) to provide assistance to eligible local edu24 cational agencies experiencing large increases in stu25 dent enrollment due to Hurricane Katrina; 
50 

•S 1766 IS 

1 (2) to assist private and parochial schools expe2 riencing large increases in student enrollment due to 

3 Hurricane Katrina. 

4 (3) to facilitate the enrollment of students im5 pacted by Hurricane Katrina into elementary schools 

6 and secondary schools served by such agencies and 

7 private and parochial schools; and 

8 (4) to provide high quality instruction to such 

9 students. 

10 (b) GRANTS AUTHORIZED.— 

11 (1) IN GENERAL.—The Secretary of Education 

12 shall award grants to eligible local educational agen13 cies and eligible private schools. 

14 (2) ELIGIBLE LOCAL EDUCATIONAL AGENCIES

15 AND ELIGIBLE PRIVATE SCHOOLS.— 

16 (A) CHILD COUNT.—Each State that has a 

17 large influx of displaced students due to Hurri18 cane Katrina, as determined by the Secretary of 

19 Education, shall set a child count date for local 

20 educational agencies in the State that have a 

21 large influx of such students, as determined by 

22 the State, for the purpose of determining the 

23 total number of such students in each such 

24 agency. 
51 

•S 1766 IS 

1 (B) DEFINITION OF ELIGIBLE LOCAL EDU2 CATIONAL AGENCY.—In this section, the term 

3 ‘‘eligible local educational agency’’ means a 

4 local educational agency— 

5 (i) that serves, as determined in ac6 cordance with the child count described in 

7 subparagraph (A), not less than 30 dis8 placed students due to Hurricane Katrina; 

9 or 

10 (i) that serves an elementary school or 

11 secondary school in which not less than 3 

12 percent of the students enrolled at the 

13 school are displaced students due to Hurri14 cane Katrina, as determined in accordance 

15 with the child count described in subpara16 graph (A). 

17 (C) DEFINITION OF ELIGIBLE PRIVATE

18 SCHOOL.—The term eligible private school 

19 means a private or parochial elementary or sec20 ondary school that meets the requirements of 

21 subparagraph (B)(i) and is a school described 

22 in subparagraph (B)(ii). 

23 (3) GRANT AMOUNT.—An eligible local edu24 cational agency or an eligible private school that re25 ceives a grant under this section shall receive a 
52 

•S 1766 IS 

1 grant amount that is equal to $4,000 multiplied 

2 by— 

3 (A) in the case of an eligible local edu4 cational agency, the number of students who 

5 enroll in elementary schools and secondary 

6 schools served by such agency because the stu7 dents are displaced due to Hurricane Katrina; 

8 and 

9 (B) in the case of an eligible private 

10 school, the number of students enrolled in the 

11 private school who are displaced due to Hurri12 cane Katrina. 

13 (c) APPLICATION.—Each eligible local educational 

14 agency and eligible private school desiring a grant under 

15 this section shall prepare and submit an application to the 

16 Secretary of Education that contains— 

17 (1) an assurance that the educational pro18 grams, services, and activities proposed under this 

19 section will be administered by or under the super20 vision of the agency or the eligible private school, re21 spectively; 

22 (2) an assurance that the agency or eligible pri23 vate school will coordinate the use of funds received 

24 under this section with other funds received by the 

25 agency or the eligible private school under the Ele-
53 

•S 1766 IS 

1 mentary and Secondary Education Act of 1965 (20 

2 U.S.C. 6301 et seq.) and with programs described 

3 under such Act; 

4 (3) an assurance that funds will be used— 

5 (A)(i) in the case of funds received by an 

6 eligible local educational agency, to improve in7 struction to students who enroll in elementary 

8 schools and secondary schools served by such 

9 agency because the students are displaced due 

10 to Hurricane Katrina; or 

11 (ii) in the case of funds received by an eli12 gible private school, to improve instruction to 

13 students enrolled in the school who are dis14 placed due to Hurricane Katrina; and 

15 (B) to facilitate such students’ transition 

16 into schools served by the agency or eligible pri17 vate school; and 

18 (4) such other information and assurances as 

19 the Secretary may reasonably require. 

20 (d) USE OF FUNDS.—Each eligible local educational 

21 agency or eligible private school that receives a grant 

22 under this section shall use the grant funds to enhance 

23 instructional opportunities for students who enroll in ele24 mentary schools and secondary schools served by such 

25 agency or the eligible private school, respectively, because 
54 

•S 1766 IS 

1 the students are displaced due to Hurricane Katrina, 

2 which may include— 

3 (1) basic instructional services for such stu4 dents, including tutoring, mentoring, or academic 

5 counseling; 

6 (2) salaries of personnel, including teacher 

7 aides, to provide instructional services to such stu8 dents; 

9 (3) identification and acquisition of curricular 

10 material, including the costs of providing additional 

11 classroom supplies, overhead costs, costs of construc12 tion, acquisition or rental of space, costs of transpor13 tation, or such other costs as are directly attrib14 utable to such instructional services for such stu15 dents; 

16 (4) health services (including mental health 

17 services), meals, and clothing; and 

18 (5) such other activities, related to the purpose 

19 of this section, as the Secretary of Education may 

20 authorize. 

21 (e) APPROPRIATIONS.— 

22 (1) IN GENERAL.—Out of any money in the 

23 Treasury not otherwise appropriated, there are au24 thorized to be appropriated and there are appro-
55 

•S 1766 IS 

1 priated to carry out this section such sums as may 

2 be necessary. 

3 (2) EMERGENCY DESIGNATION.—The amount 

4 appropriated under this subsection is designated as 

5 an emergency requirement pursuant to section 402 

6 of H. Con. Res. 95 (109th Congress). 

7 SEC. 121. IMMEDIATE AID TO RESTART SCHOOL OPER8 ATIONS. 

9 (a) PURPOSE.—It is the purpose of this section— 

10 (1) to provide immediate and direct assistance 

11 to local educational agencies and private or parochial 

12 schools in Louisiana that serve an area in which a 

13 major disaster has been declared in accordance with 

14 section 401 of the Robert T. Stafford Disaster Relief 

15 and Emergency Assistance Act (42 U.S.C. 5170), 

16 related to Hurricane Katrina; 

17 (2) to assist school district administrators and 

18 personnel of such agencies or schools who are work19 ing to restart operations in elementary schools and 

20 secondary schools served by such agencies or schools; 

21 and 

22 (3) to facilitate the reopening of elementary 

23 schools and secondary schools served by such agen24 cies or schools and the enrollment of students in 
56 

•S 1766 IS 

1 schools served by such agencies or schools as soon 

2 as possible. 

3 (b) PAYMENTS AUTHORIZED.—From amounts appro4 priated to carry out this section, the Secretary of Edu5 cation is authorized to make payments to the State De6 partments of Education in Louisiana for use in restarting 

7 schools located in an area in which a major disaster has 

8 been declared in accordance with section 401 of the Robert 

9 T. Stafford Disaster Relief and Emergency Assistance Act 

10 (42 U.S.C. 5170), related to Hurricane Katrina. 

11 (c) SUPPLEMENT NOT SUPPLANT.—Funds made 

12 available under this section shall be used to supplement, 

13 not supplant, any funds made available through the Fed14 eral Emergency Management Agency or through a State. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $600,000,000 for fiscal year 2006. 

18 SEC. 122. EDUCATION FOR INDIVIDUALS WITH DISABIL19 ITIES. 

20 (a) DATA FOR FUNDING CALCULATIONS.—In calcu21 lating funding under the Individuals with Disabilities Edu22 cation Act (20 U.S.C. 1400 et seq.) for the 2005–2006 

23 school year and the 2006–2007 school year for a State 

24 that meets the requirements of subsection (b), the Sec25 retary of Education shall use data from the 2004–2005 
57 

•S 1766 IS 

1 school year to determine the number of children in such 

2 State for the purposes of— 

3 (1) subsections (a) and (d)(3) of section 611 of 

4 the Individuals with Disabilities Education Act (20 

5 U.S.C. 1411 (a) and (d)(3)); 

6 (2) section 619 of the Individuals with Disabil7 ities Education Act (20 U.S.C. 1419), if such State 

8 is eligible to receive an allocation under such section; 

9 and 

10 (3) section 643(c) of the Individuals with Dis11 abilities Act (20 U.S.C. 1443(c)). 

12 (b) SENDING STATE.—A State referred to in sub13 section (a) is a State that— 

14 (1) includes an area in which the President has 

15 declared that a major disaster exists in accordance 

16 with section 401 of the Robert T. Stafford Disaster 

17 Relief and Emergency Assistance Act (42 U.S.C. 

18 5170) related to Hurricane Katrina; and 

19 (2) for the 2005–2006 school year or 2006– 

20 2007 school year, has a net loss of students attend21 ing the schools located in the State, as compared the 

22 2004–2005 school year. 
58 

•S 1766 IS 

1 SEC. 123. EDUCATION FOR HOMELESS CHILDREN AND 

2 YOUTHS. 

3 (a) IN GENERAL.—In addition to amounts otherwise 

4 appropriated to carry out subtitle B of title VII of the 

5 McKinney-Vento Homeless Assistance Act (42 U.S.C. 

6 11431 et seq.), and out of any money in the Treasury not 

7 otherwise appropriated, there are appropriated 

8 $20,000,000 for the 180-day period beginning on the date 

9 of enactment of this section to carry out education for 

10 homeless children and youths under such subtitle for 

11 homeless children and youths affected by Hurricane 

12 Katrina. 

13 (b) EMERGENCY DESIGNATION.—The amount appro14 priated under this section is designated as an emergency 

15 requirement pursuant to section 402 of H. Con. Res. 95 

16 (109th Congress). 

17 SEC. 124. WAIVERS OF FEDERAL STUDENT AID. 

18 Section 484B(b)(2) of the Higher Education Act of 

19 1965 (20 U.S.C. 1091b(b)(2)) is amended by adding at 

20 the end the following new subparagraph: 

21 ‘‘(D) WAIVERS OF FEDERAL STUDENT

22 AID.—The Secretary may issue one-time waiv23 ers of the amounts that students are required 

24 to return under this section with respect to stu25 dent aid awarded under this title, if— 
59 

•S 1766 IS 

1 ‘‘(i) the students were residing in, em2 ployed in, or attending an institution of 

3 higher education that is located in an 

4 area— 

5 ‘‘(I) in which the President has 

6 declared that a major disaster exists, 

7 in accordance with section 401 of the 

8 Robert T. Stafford Disaster Relief 

9 and Emergency Assistance Act (42 

10 U.S.C. 5170); and 

11 ‘‘(II) in which individual an pub12 lic assistance is available pursuant to 

13 this Act; and 

14 ‘‘(ii) the students’ attendance was in15 terrupted because of the impact of the dis16 aster on the student or the institution.’’. 

17 SEC. 125. WAIVER AUTHORITY TO MODIFY AUTHORIZED 

18 USES OF TRIO, GEAR-UP, PART A OR B OF 

19 TITLE III AND OTHER GRANTS 

20 The Secretary is authorized to modify the required 

21 and allowable uses of funds under chapters 1 and 2 of 

22 subpart 2 of part A of title IV of the Higher Education 

23 Act of 1965 (20 U.S.C. 1070a et seq., 1070a–21 et seq.), 

24 under part A or B of title III (20 U.S.C. 1057 et seq., 

25 1060 et seq.), and under any other competitive grant pro-
60 

•S 1766 IS 

1 gram, at the request of an institution or other grantee 

2 affected by Hurricane Katrina, with respect to affected in3 stitutions and other grantees located in an area which an 

4 emergency or major disaster was declared under section 

5 401 of the Robert T. Stafford Disaster Relief and Emer6 gency Assistance Act due to the effects of Hurricane 

7 Katrina. 

8 SEC. 126. FUND FOR EARLY CHILDHOOD CARE AND EDU9 CATION. 

10 (a) PURPOSE.—It is the purpose of this section— 

11 (1) to provide assistance to local communities 

12 experiencing large influxes of preschool-aged chil13 dren displaced by Hurricane Katrina; 

14 (2) to provide assistance to local communities 

15 in Louisiana that are directly impacted by Hurri16 cane Katrina; and 

17 (3) to facilitate placement of such children in 

18 early childhood education programs. 

19 (b) EARLY CHILDHOOD EDUCATION PROGRAMS.—In 

20 this section, the term ‘‘early childhood education pro21 gram’’ means a Head Start program or a LA 1 Early 

22 Head Start program carried out under the Head Start Act 

23 (42 U.S.C. 9831 et seq.), a State licensed or regulated 

24 child care program or school, or a State prekindergarten 
61 

•S 1766 IS 

1 program that serves children from birth through kinder2 garten. 

3 (c) GRANTS AND SUBGRANTS AUTHORIZED.— 

4 (1) GRANTS.—The Secretary of Health and 

5 Human Services shall award grants to States dem6 onstrating large influxes of children and families dis7 placed due to Hurricane Katrina. 

8 (2) SUBGRANTS.— 

9 (A) IN GENERAL.—A State receiving a 

10 grant under paragraph (1) shall award sub11 grants to affected local communities in the 

12 State to facilitate placement of displaced chil13 dren in existing early childhood education pro14 grams. 

15 (B) AFFECTED LOCAL COMMUNITIES.—In 

16 this paragraph, the term ‘‘affected local com17 munity’’ means a local community— 

18 (i) in a State described in subpara19 graph (A) in which— 

20 (I) there are not less than 200 

21 pre-school aged children who are dis22 placed due to Hurricane Katrina; or 

23 (II) there is a significant percent24 age of the total number of children 

25 participating in early childhood edu-
62 

•S 1766 IS 

1 cation programs in the community 

2 who are children who are in the com3 munity because the children are dis4 placed due to Hurricane Katrina, as 

5 determined by the Secretary of Health 

6 and Human Services; or 

7 (ii) in a Louisiana parish affected by 

8 Hurricane Katrina. 

9 (d) APPLICATIONS.—Each State that desires to re10 ceive a grant under this section shall prepare and submit 

11 an application to the Secretary of Health and Human 

12 Services that contains— 

13 (1) a description of the collaborative planning 

14 process between the State agency responsible for 

15 pre-kindergarten, State child care administrator, and 

16 Head Start Collaboration Director to facilitate the 

17 placement of children who are displaced due to Hur18 ricane Katrina in early childhood education pro19 grams; 

20 (2) assurances that funds received under this 

21 section will be used for the purpose described in sub22 section (a); 

23 (3) a plan to coordinate funds received under 

24 this section with existing resources available to the 
63 

•S 1766 IS 

1 early childhood education programs for similar pur2 poses; and 

3 (4) such other information and assurances as 

4 the Secretary of Health and Human Services may 

5 reasonably require. 

6 (e) USE OF SUBGRANT FUNDS.— 

7 (1) IN GENERAL.—Each affected local commu8 nity receiving a subgrant under this section shall use 

9 the subgrant funds only for— 

10 (A) costs associated with accommodating 

11 the influx of displaced children, including acqui12 sition or rental of space; 

13 (B) costs associated with providing services 

14 to displaced children, including related services 

15 such as nutrition and acquisition of related ma16 terials; and 

17 (C) costs associated with hiring additional 

18 personnel, including teacher aides or personnel 

19 working with families of children. 

20 (2) INCOME AND DOCUMENTATION WAIVER.— 

21 The Secretary of Health and Human Services shall 

22 waive requirements of income eligibility and docu23 mentation for children displaced by Hurricane 

24 Katrina who participate in early childhood education 

25 programs, such as Head Start programs and Early 
64 

•S 1766 IS 

1 Head Start, funded by subgrants awarded pursuant 

2 to this section. 

3 (f) APPROPRIATIONS.— 

4 (1) IN GENERAL.—Out of any money in the 

5 Treasury not otherwise appropriated, there are au6 thorized to be appropriated and there are appro7 priated to carry out this section $600,000,000 for 

8 fiscal year 2006, of which not more than .05 percent 

9 may be used for administrative expenses. 

10 (2) AVAILABILITY.—Funds appropriated under 

11 this subsection shall remain available until expended 

12 or until the date that is 2 years after the date of 

13 enactment of this Act, whichever is earlier. 

14 (3) EMERGENCY DESIGNATION.—The amount 

15 appropriated under this subsection is designated as 

16 an emergency requirement pursuant to section 402 

17 of H. Con. Res. 95 (109th Congress). 

18 SEC. 127. IMPROVING EDUCATIONAL INFRASTRUCTURE. 

19 (a) PURPOSE.—It is the purpose of this section to 

20 assist areas impacted by Hurricane Katrina to repair, ren21 ovate, alter, or construct facilities critical to the edu22 cational needs of students, by providing Federal funds to 

23 assist local educational agencies, early childhood education 

24 programs, and private or parochial kindergarden through 

25 grade 12 programs, to meet costs associated with repair-
65 

•S 1766 IS 

1 ing, renovating, altering, or constructing the facilities of 

2 such entities. 

3 (b) GRANTS AUTHORIZED.—The Secretary of Edu4 cation shall award a grant to the Louisiana Department 

5 of Education to enable the Louisiana Department of Edu6 cation to award subgrants to local educational agencies, 

7 early childhood education programs, and private or paro8 chial kindergarden through grade 12 programs that are 

9 in an area, that is subject to a declaration by the Presi10 dent of a major disaster in accordance with section 401 

11 of the Robert T. Stafford Disaster Relief and Emergency 

12 Assistance Act (42 U.S.C. 5170) related to Hurricane 

13 Katrina and in which individual and public assistance is 

14 available pursuant to this Act, relative to the dem15 onstrated need for the repair, renovation, alteration, or 

16 construction of the facilities of such entities based on the 

17 condition of the facilities due to the impact of Hurricane 

18 Katrina. 

19 (c) USE OF FUNDS.—Each local educational agency, 

20 early childhood education program, or private or parochial 

21 kindergarden through grade 12 program receiving 

22 subgrant funds under this section shall use such funds 

23 only to facilitate the education of students through the re24 pair, renovation, alteration, or construction of a public ele25 mentary school or secondary school facility, an early child-
66 

•S 1766 IS 

1 hood education facility, or a private or parochial 

2 kindergarden through grade 12 program facility, used for 

3 academic, vocational, or developmental instruction. 

4 (d) APPROPRIATIONS.— 

5 (1) IN GENERAL.—There are authorized to be 

6 appropriated to carry out this section 

7 $2,000,000,000 for fiscal year 2006, of which not 

8 more than .05 percent may be used for administra9 tion expenses. 

10 (2) AVAILABILITY.—Funds appropriated under 

11 subsection (a) shall remain available until expended. 

12 SEC. 128. POSTSECONDARY EDUCATION STABILIZATION 

13 BOARD. 

14 (a) APPROPRIATIONS.— 

15 (1) IN GENERAL.—Out of any money in the 

16 Treasury not otherwise appropriated, there are ap17 propriated for the fiscal year ending September 30, 

18 2005, $5,000,000,000 to remain available until ex19 pended to the Postsecondary Education Stabilization 

20 Board, established under this section, to establish an 

21 Education Relief Fund for the compensation of post22 secondary educational institutions for direct and as23 sociated losses due to the impact of Hurricane 

24 Katrina and for recovery initiatives. 
67 

•S 1766 IS 

1 (2) EMERGENCY DESIGNATION.—The amount 

2 appropriated under paragraph (1) is designated as 

3 an emergency requirement pursuant to section 402 

4 of H. Con. Res. 95 (109th Congress). 

5 (b) POSTSECONDARY EDUCATIONAL INSTITUTION.— 

6 In this section, the term ‘‘postsecondary educational insti7 tution’’ means— 

8 (1) a public postsecondary institution located in 

9 Louisiana; 

10 (2) a private nonprofit postsecondary institu11 tion, which is a member of the Louisiana Association 

12 of Independent Colleges and Universities, located in 

13 Louisiana; or 

14 (3) a private for profit postsecondary institution 

15 located in Louisiana determined by the Postsec16 ondary Education Stabilization Board to be eligible 

17 for assistance under this section. 

18 (c) POSTSECONDARY EDUCATION STABILIZATION

19 BOARD.— 

20 (1) ESTABLISHMENT.—There is established a 

21 Postsecondary Education Stabilization Board com22 posed of the Secretary of Education (or a designee 

23 of the Secretary of Education), and the Secretary of 

24 the Treasury (or a designee of the Secretary of the 

25 Treasury). 
68 

•S 1766 IS 

1 (2) DUTIES.—The Postsecondary Education 

2 Stabilization Board shall— 

3 (A) establish an Education Relief Fund 

4 that includes funds appropriated under this sec5 tion; and 

6 (B) from such Education Relief Fund pro7 vide funds to postsecondary educational institu8 tions for direct or indirect losses incurred on or 

9 after August 28, 2005, resulting from the im10 pact of Hurricane Katrina, and recovery initia11 tives of such institutions. 

12 (d) USE OF ASSISTANCE.—Assistance received by a 

13 postsecondary educational institution pursuant to this sec14 tion may be used for— 

15 (1) direct and indirect construction costs and 

16 clean-up costs resulting from Hurricane Katrina; 

17 (2) faculty salaries and incentives for retaining 

18 faculty; 

19 (3) educational programs relevant to the recov20 ery effort; 

21 (4) institutional initiatives designed for eco22 nomic and community revitalization and recovery; 

23 (5) faculty recruitment costs; 

24 (6) costs of lost tuition, revenue, and enroll25 ment; and 
69 

•S 1766 IS 

1 (7) debt relief. 

2 (e) REQUIREMENTS FOR ASSISTANCE DUE TO

3 LOSSES.—A postsecondary educational institution that 

4 desires to receive assistance under this section shall— 

5 (1) submit a sworn financial statement and 

6 other appropriate data, documentation, or other evi7 dence requested by the Postsecondary Education 

8 Stabilization Board, to the Postsecondary Education 

9 Stabilization Board that indicates that the institu10 tion incurred losses resulting from the impact of 

11 Hurricane Katrina and the monetary amount of 

12 such losses; and 

13 (2) demonstrate that the institution attempted 

14 to minimize the costs of any losses by pursuing col15 lateral source compensation from the Federal Emer16 gency Management Agency, the Small Business Ad17 ministration, and insurance prior to seeking assist18 ance under this section. 

19 (f) AUDIT.—The Secretary of Education and the 

20 Comptroller General of the United States may audit a 

21 statement submitted under subsection (e) and may request 

22 any information that the Secretary of Education and 

23 Comptroller General determine necessary to conduct such 

24 an audit. 
70 

•S 1766 IS 

1 (g) REDUCTION IN ASSISTANCE.—In calculating as2 sistance to a postsecondary educational institution under 

3 this section, the Postsecondary Education Stabilization 

4 Board shall calculate a figure that reduces from the mone5 tary amount of losses incurred by such institution, only 

6 the amount of collateral source compensation the institu7 tion has received from insurance, the Federal Emergency 

8 Management Agency, and the Small Business Administra9 tion. 

10 (h) REGULATIONS.—Not later than 14 days after the 

11 date of enactment of this section, the Office of Manage12 ment and Budget, in consultation with the Postsecondary 

13 Education Stabilization Board, shall issue regulations set14 ting forth procedures for an application for assistance 

15 under this section and minimum requirements for receiv16 ing assistance under this section, including the following: 

17 (1) Online forms to be used in submitting re18 quests for assistance 

19 (2) Information to be included in forms. 

20 (3) Procedures to assist in filing and pursuing 

21 assistance. 

22 (i) TAX CONSEQUENCES.— 

23 (1) NOT INCOME.—Any assistance received by a 

24 postsecondary educational institution under this sec-
71 

•S 1766 IS 

1 tion shall not be treated as income for the purposes 

2 of the Internal Revenue Code of 1986. 

3 (2) TAX EXEMPT.—Any Government bond 

4 issued to finance the construction of a public or pri5 vate postsecondary educational institution shall be 

6 considered an exempt facility bond for purposes of 

7 the Internal Revenue Code of 1986 and shall not be 

8 subject to section 146 of such Code. 

9 (j) WAIVERS.—The Secretary of Education may 

10 waive any requirements under title IV of the Higher Edu11 cation Act of 1965 (20 U.S.C. 1070 et seq.) that are ren12 dered infeasible or unreasonable due to the impact of Hur13 ricane Katrina, including due diligence requirements and 

14 reporting deadlines, for an institution of higher education, 

15 eligible lender, or other entity participating in a student 

16 assistance program under such title that is located in, or 

17 whose operations are directly affected by, an area in which 

18 the President has declared that a major disaster exists in 

19 accordance with section 401 of the Robert T. Stafford Dis20 aster Relief and Emergency Assistance Act (42 U.S.C. 

21 5170), related to Hurricane Katrina. 

22 Subtitle K—Coast Guard 

23 For an amount for the United States Coast Guard, 

24 $10,000,000, to be used to contract with commercial fish25 ing vessel operators to remove debris from the marine en-
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1 vironment caused by Hurricane Katrina: Provided, That 

2 the Commandant of the Coast Guard is authorized to use 

3 the emergency and simplified acquisition procedures estab4 lished under the Homeland Security Act of 2002 to award 

5 such contracts on an expedited basis: Provided further, 

6 That not later than 6 months after the date of enactment 

7 of this Act, the Commandant shall submit to Congress a 

8 report on the debris removal efforts, including the type 

9 and amount of debris removed, the number of commercial 

10 fishing vessels employed, the funds disbursed to carry out 

11 this subtitle, and a comprehensive plan for further removal 

12 of any remaining marine debris. 

13 Subtitle L—Department of the 

14 Interior 

15 DEPARTMENT OF THE INTERIOR

16 For an additional amount for necessary expenses to 

17 carry out the projects and activities described in subtitle 

18 E of title VI— 

19 (1) $8,000,000 shall be available to provide a 

20 direct, lump-sum payment to the Louisiana Depart21 ment of Wildlife and Fisheries by not later than 30 

22 days after the date of enactment of this Act for di23 rect financial assistance to alligator farmers affected 

24 by Hurricane Katrina in Louisiana; 
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•S 1766 IS 

1 (2) $27,000,000 shall be available to provide a 

2 direct, lump-sum payment to the Louisiana Forestry 

3 Association by not later than 30 days after the date 

4 of enactment of this Act for lost timber sales reve5 nues from the Pearl River Wildlife Management 

6 Area resulting from Hurricane Katrina in Louisiana; 

7 (3) $12,000,000 shall be available for a direct, 

8 lump-sum payment to the Louisiana Department of 

9 Wildlife and Fisheries by not later than 30 days 

10 after the date of enactment of this Act for the res11 toration of wildlife management areas and other as12 sessments, research, management, and restoration 

13 activities relating to wildlife and habitat manage14 ment; and 

15 (4) such sums as are necessary shall be avail16 able by not later than 30 days after the date of en17 actment of this Act for assessment, research, and 

18 mitigation activities of the Louisiana Department of 

19 Wildlife and Fisheries. 

20 The amounts provided under this heading are des21 ignated as an emergency requirement pursuant to section 

22 402 of the conference report to accompany H. Con. Res. 

23 95 (109th Congress). 
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1 Subtitle M—Department of 

2 Agriculture 

3 RURAL HOUSING SERVICE

4 RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

5 For additional gross obligations for the principal 

6 amount of direct and guaranteed loans as authorized by 

7 title V of the Housing Act of 1949, to be available from 

8 funds in the rural housing insurance fund, as follows: 

9 $313,000,000 for loans to section 502 borrowers, as deter10 mined by the Secretary, of which $60,000,000 shall be 

11 available for direct loans, and of which $210,000,000 shall 

12 be available for unsubsidized guaranteed loans; 

13 $3,000,000 for section 504 housing repair loans of which 

14 $40,000,000 shall be available for section 515 rental hous15 ing and 100 percent rental assistance. 

16 For the additional cost of direct loans, including the 

17 cost of modifying loans as defined in section 502 of the 

18 Congressional Budget Act of 1974, as follows: For section 

19 502 loans, $313,000,000, of which $60,000,000, to re20 main available until expended, shall be for direct loans, 

21 and of which $210,000,000, to remain available until ex22 pended, shall be for unsubsidized guaranteed loans of 

23 which $3,000,000 shall be available for section 504 hous24 ing repair loans, to remain available until expended of 

25 which $40,000,000 shall be available for section 515 loans 
75 

•S 1766 IS 

1 and 100 percent rental assistance, $40,000,000, to remain 

2 available until expended. 

3 Provided, That such loans shall only be available for 

4 projects in communities in the State of Louisiana des5 ignated by the President as a major disaster area pursu6 ant to the Robert T. Stafford Disaster Relief and Emer7 gency Assistance Act in connection with Hurricane 

8 Katrina: Provided further, That for the requirements of 

9 clause (3) of section 501(c) of the Housing Act of 1949 

10 (relating to inability to secure credit from other sources) 

11 shall not apply to any direct loan under section 502 of 

12 such Act: Provided further, That any limitations under 

13 title V of the Housing Act of 1949 that are based on the 

14 income of families shall not apply during fiscal years 2006 

15 through 2008 for purposes of any guaranteed loan under 

16 section 502 of such Act that refinances any existing direct 

17 or guaranteed loan under such section and includes 

18 amounts for repairs with respect to any community in the 

19 State of Louisiana designated by the President as a major 

20 disaster area pursuant to the Robert T. Stafford Disaster 

21 Relief and Emergency Assistance Act or to families resid22 ing in such communities: Provided further, That under the 

23 guaranteed loan program under section 502 of the Hous24 ing Act of 1949, the Secretary shall have authority to refi25 nance a loan previously financed or mortgaged, but not 
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1 already guaranteed by the Rural Housing Service, on a 

2 home with repairs within income limit restrictions estab3 lished by each individual parish within the State of Lou4 isiana: Provided further, That notwithstanding any provi5 sion of section 504 of the Housing Act of 1949, the Sec6 retary may make loans from amounts made available 

7 under this heading for housing in communities in the 

8 State of Louisiana designated by the President as a major 

9 disaster area pursuant to the Robert T. Stafford Disaster 

10 Relief and Emergency Assistance Act in connection with 

11 Hurricane Katrina to eligible low-income applicants, the 

12 maximum amount of such a loan shall be $35,000, the 

13 maximum amount of a loan evidenced by a promissory 

14 note shall be $15,000, and such loans may be made with15 out obtaining an appraisal in advance and shall be repay16 able within 30 years: Provided further, That the amounts 

17 provided under this heading are designated as an emer18 gency requirement pursuant to section 402 of H. Con. 

19 Res. 95 (109th Congress). 

20 RURAL HOUSING ASSISTANCE GRANTS

21 For an additional amount for Rural Housing Assist22 ance Grants, $4,000,000, to remain available until ex23 pended, to be used for grants and contracts for housing 

24 repair under section 504 of the Housing Act of 1949 (42 

25 U.S.C. 1474): Provided, That such grants and contracts 

26 under this heading shall only be available for projects in 
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1 communities in the State of Louisiana designated by the 

2 President as a major disaster area pursuant to the Robert 

3 T. Stafford Disaster Relief and Emergency Assistance Act 

4 in connection with Hurricane Katrina: Provided further, 

5 That notwithstanding any provision of such section 504, 

6 the Secretary may make grants and contracts from 

7 amounts made available under this heading for housing 

8 in communities in the State of Louisiana designated by 

9 the President as a major disaster area pursuant to the 

10 Robert T. Stafford Disaster Relief and Emergency Assist11 ance Act in connection with Hurricane Katrina to eligible 

12 low-income applicants and the maximum amount of such 

13 a grant shall be $15,000: Provided further, That the 

14 amounts provided under this heading are designated as 

15 an emergency requirement pursuant to section 402 of H. 

16 Con. Res. 95 (109th Congress). 

17 Subtitle N—Department of Justice 

18 GENERAL ADMINISTRATION 

19 Salaries and Expenses 

20 SEC. 131. DEFINITION. 

21 For the purpose of this subtitle, the term ‘‘unit of 

22 local government’’ means— 

23 (1) a county, township, city, or political subdivi24 sion of a county, township, or city that is a unit of 
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1 local government as determined by the Secretary of 

2 Commerce for general statistical purposes; or 

3 (2) a district attorney or a parish sheriff in the 

4 State of Louisiana. 

5 SEC. 132. FUNDING. 

6 In addition to amounts otherwise provided for in this 

7 Act, the following amounts are appropriated for fiscal year 

8 2006 and designated as an emergency requirement pursu9 ant to section 402 of H. Con. Res. 95 (109th Congress): 

10 (1) EMERGENCY LAW ENFORCEMENT ASSIST11 ANCE.— 

12 (A) FUNDING.—For an additional amount 

13 for hurricane-related expenses, $650,000,000 to 

14 remain available until expended: Provided, That 

15 such sums as are necessary shall be derived 

16 from programs in the Office of Justice Pro17 grams, Bureau of Justice Assistance authorized 

18 by the Justice Assistance Act of 1984, title II, 

19 chapter VI (Public Law 98–473; Stat. 1837, 

20 sec. 609): Provided further, That of the 

21 amounts made available under this heading, 

22 $650,000,000 shall be available only for the 

23 Louisiana Commission on Law Enforcement. 

24 (B) WAIVER.—Notwithstanding any limitations 

25 on the amount of funds that may be distributed 
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1 from this program under section 609Y of the Justice 

2 Assistance Act of 1984 (42 U.S.C. 10513(a)) such 

3 limitations are waived for purposes of the funding 

4 made available under this paragraph. 

5 (2) ENHANCING LAW ENFORCEMENT.—For an 

6 additional amount for ‘‘Enhancing State and Local 

7 Law Enforcement’’ for expenses related to respond8 ing to Hurricane Katrina, $200,000,000 to the 

9 Community Oriented Policing Services program to 

10 remain available until expended: Provided, That of 

11 the amounts made available under this heading, 

12 $200,000,000 shall be available only to the hiring 

13 section. 

14 (3) ASSISTING CHILDREN IMPACTED BY HURRI15 CANE KATRINA.—For an additional amount of 

16 $10,000,000 to remain available until expended for 

17 the Missing Children Program at the National Cen18 ter for Missing and Exploited Children to find, 

19 unite, and transport children impacted by Hurricane 

20 Katrina to their parents, legal guardian, or next of 

21 kin. 

22 SEC. 133. ASSISTANCE TO COURTS. 

23 Section 462(f) title 28, United States Code, is 

24 amended by adding at the end the following: 
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1 ‘‘(g) The Chief Judge of each United States District 

2 Court is encouraged to cooperate with requests from State 

3 and local authorities whose operations have been signifi4 cantly disrupted as a result of Hurricane Katrina to pro5 vide accommodations in Federal facilities for State and 

6 local courts to conduct proceedings. The Administrator of 

7 General Services is authorized and directed to provide the 

8 accommodations requested by the Chief Judge.’’. 

9 TITLE II—IMPROVEMENTS TO 

10 DISASTER ASSISTANCE 

11 SEC. 200. SENSE OF THE SENATE REGARDING THE AP12 POINTMENT OF FEDERAL CENTRAL COORDI13 NATING AGENT. 

14 It is the Sense of the Senate that— 

15 (1) the President, in order to efficiently coordi16 nate and monitor the Federal relief and reconstruc17 tion efforts for the State of Louisiana, should ap18 point an individual to coordinate Federal efforts to 

19 work with the State of Louisiana and local govern20 ments directly impacted by the Hurricane Katrina 

21 as those respective entities plan for their rehabilita22 tion and reconstruction, oversee all Federal work re23 lating to such rehabilitation and reconstruction, and 

24 oversee the obligation of all federally appropriated 
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1 funds for the purpose of Hurricane Katrina recov2 ery, rehabilitation and reconstruction; and 

3 (2) the appointed individual should be invested 

4 with authority to waive Federal regulatory processes 

5 and legislative impediments to the reconstruction ef6 forts, and further, that the individual be the central 

7 coordinating agent for the Federal actions pursuant 

8 to Katrina recovery, rehabilitation, and reconstruc9 tion. 

10 Subtitle A—Immediate Disaster 

11 Relief 

12 SEC. 201. WAIVER OF COST-SHARING AND MAXIMUM AS13 SISTANCE REQUIREMENTS. 

14 With respect to the provision of assistance to individ15 uals, households, State and local public entities, and non16 profit entities in response to a major disaster relating to 

17 Hurricane Katrina declared by the President on August 

18 29, 2005, in accordance with section 401 of the Robert 

19 T. Stafford Disaster Relief and Emergency Assistance Act 

20 (42 U.S.C. 5170), for the 2-year period beginning on the 

21 date of enactment of this Act— 

22 (1) the Federal share under subsection 

23 (g)(2)(A) of that section shall be 100 percent; 
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•S 1766 IS 

1 (2) the maximum limitations on assistance 

2 under paragraphs (2) and (3) of subsection (c), and 

3 subsection (h), of that section shall not apply; 

4 (3) the Federal shares required under para5 graphs (1)(A) and (2)(A) of section 406(c) of the 

6 Robert T. Stafford Disaster Relief and Emergency 

7 Assistance Act (42 U.S.C. 5172(c)) shall be 100 

8 percent; and 

9 (4) subsections (b)(1) and (b)(2) of section 406 

10 of that Act (42 U.S.C. 5172) shall not apply. 

11 SEC. 202. HAZARD MITIGATION GRANT PROGRAM. 

12 Section 404(a) of the Robert T. Stafford Disaster Re13 lief and Emergency Assistance Act (42 U.S.C. 5170c(a)) 

14 is amended in the third sentence by striking ‘‘7.5’’ and 

15 inserting ‘‘15’’. 

16 SEC. 203. STATE MANAGEMENT COSTS. 

17 Not later than 90 days after the date of enactment 

18 of this Act, the Secretary of Homeland Security shall— 

19 (1) develop and implement a process for the ap20 proval of requests for State management cost fund21 ing to ensure, to the maximum extent practicable, 

22 that each such request is approved or disapproved 

23 within the 30-day period after the date of receipt by 

24 the Secretary of the request; and 
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•S 1766 IS 

1 (2) acting through the Director of the Federal 

2 Emergency Management Agency, develop and pro3 vide to States clear and concise guidance to ensure, 

4 to the maximum extent practicable, that the submis5 sion content and evaluation of those requests is con6 sistent. 

7 SEC. 204. DISASTER RELIEF EQUITY. 

8 Notwithstanding any other provision of law, the reli9 gious status of a private nonprofit facility located in an 

10 area in which a major disaster relating to Hurricane 

11 Katrina was declared by the President under section 401 

12 of the Robert T. Stafford Disaster Relief and Emergency 

13 Assistance Act (42 U.S.C. 5170), or of the owner or oper14 ator of such a facility, shall not preclude the facility from 

15 being eligible to receive Federal assistance for use in re16 pairing, restoring, reconstructing, or replacing the facility 

17 following damage or destruction of the facility as a result 

18 of Hurricane Katrina. 

19 SEC. 205. PRESIDENTIALLY DECLARED DISASTER AREA 

20 MAY INCLUDE THE OUTER CONTINENTAL 

21 SHELF. 

22 (a) IN GENERAL.—Section 102(3) of the Robert T. 

23 Stafford Disaster Relief and Emergency Assistance Act 

24 (42 U.S.C. 5122(3)) is amended by inserting ‘‘, and in25 cludes the outer Continental Shelf (as defined in section 
84 

•S 1766 IS 

1 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 

2 1331(a))’’ after ‘‘Islands’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to— 

5 (1) declarations made after August 28, 2005, 

6 or 

7 (2) modifications made after such date with re8 spect to declarations made after December 31, 2003. 

9 SEC. 206. EXPEDITED PAYMENTS OF FEDERAL ASSISTANCE 

10 FOR DEBRIS REMOVAL AND EMERGENCY 

11 PROTECTIVE MEASURES. 

12 (a) DEFINITIONS.—In this section: 

13 (1) ELIGIBLE APPLICANT.—The term ‘‘eligible 

14 applicant’’ means— 

15 (A) a State government; 

16 (B) a local government;. 

17 (C) a private nonprofit organization or in18 stitution that owns or operates any private non19 profit educational, utility, emergency, medical, 

20 or custodial care facility, including a facility for 

21 the aged or disabled, or any other facility pro22 viding essential governmental services to the 

23 general public, and such facilities on Indian res24 ervations; and 
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1 (D) an Indian tribe or authorized tribal or2 ganization, or an Alaska Native village or orga3 nization (other than an Alaska Native Corpora4 tion), the ownership of which is vested in a pri5 vate individual. 

6 (2) ELIGIBLE CLAIM FOR ASSISTANCE.—The 

7 term ‘‘eligible claim for assistance’’ means— 

8 (A) a claim for the clearance, removal, or 

9 disposal of debris (such as trees, sand, gravel, 

10 building components, wreckage, vehicles, and 

11 personal property), if the debris is the result of 

12 an emergency or major disaster and the clear13 ance, removal, or disposal is necessary— 

14 (i) to eliminate an immediate threat, 

15 as determined by the Secretary of Home16 land Security, to human life, public health, 

17 or safety; 

18 (ii) to eliminate an immediate threat, 

19 as determined by the Secretary, of signifi20 cant damage to public or private property; 

21 (iii) to ensure the economic recovery 

22 of the community affected by the emer23 gency or major disaster to the benefit of 

24 the community and any other community, 

25 as determined by the Secretary; or 
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•S 1766 IS 

1 (iv) to ensure the provision of tem2 porary public transportation service in the 

3 community affected by the emergency or 

4 major disaster pursuant to section 419 of 

5 the Robert T. Stafford Disaster and Emer6 gency Assistance Act (42 U.S.C. 5186); 

7 (B) an action taken by an applicant before, 

8 during, or after an emergency or major disaster 

9 that is necessary— 

10 (i) to eliminate or reduce an imme11 diate threat, as determined by the Sec12 retary of Homeland Security, to human 

13 life, public health, or safety; or 

14 (ii) to eliminate or reduce an imme15 diate hazard, as determined by the Sec16 retary, that threatens significant damage 

17 to public or private property; or 

18 (C) any other claim that the Secretary of 

19 Homeland Security determines to be appro20 priate. 

21 (3) EMERGENCY.—The term ‘‘emergency’’ has 

22 the meaning given the term in section 102 of the 

23 Robert T. Stafford Disaster and Emergency Assist24 ance Act (42 U.S.C. 5122). 
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1 (4) MAJOR DISASTER.—The term ‘‘major dis2 aster’’ has the meaning given the term in section 

3 102 of the Robert T. Stafford Disaster and Emer4 gency Assistance Act (42 U.S.C. 5122). 

5 (b) EXPEDITED PAYMENTS AUTHORIZED.—Notwith6 standing the Robert T. Stafford Disaster Relief and 

7 Emergency Assistance Act (42 U.S.C. 5121 et seq.) (in8 cluding any regulation promulgated pursuant to that Act), 

9 the Secretary of Homeland Security, acting through the 

10 Director of the Federal Emergency Management Agency, 

11 shall pay to an eligible applicant, in accordance with sub12 section (c), 50 percent of the Federal share of assistance 

13 that the applicant is eligible to receive under section 

14 403(b), 407(d), or 503 of that Act (42 U.S.C. 5170b(b), 

15 5173(d), 5193). 

16 (c) DATE OF PAYMENT.—A claim described in sub17 section (b) shall be paid not later than 60 days after the 

18 date on which the applicant files an eligible claim for as19 sistance. 

20 SEC. 207. REQUIREMENT TO ENSURE DEBRIS CLEARANCE, 

21 REMOVAL, AND DISPOSAL FROM EMERGENCY 

22 ACCESS ROADS. 

23 (a) DEFINITION OF EMERGENCY ACCESS ROAD.—In 

24 this section, the term ‘‘emergency access road’’ means a 

25 road that requires access by emergency personnel, includ-
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•S 1766 IS 

1 ing firefighters, police, emergency medical personnel, or 

2 any other entity identified by the Secretary of Homeland 

3 Security that provides an emergency service after a dec4 laration of an emergency or major disaster (as defined in 

5 section 102 of the Robert T. Stafford Disaster Relief and 

6 Emergency Assistance Act (42 U.S.C. 5122)). 

7 (b) REQUIREMENT.—Any reimbursement authorized 

8 under section 407 of the Robert T. Stafford Disaster Re9 lief and Emergency Assistance Act (42 U.S.C. 5173) for 

10 clearing and removing debris shall include reimbursement 

11 for clearing, removing, and disposing of debris from any 

12 emergency access road. 

13 SEC. 208. INCLUSION OF DEBRIS REMOVAL FROM PRIVATE 

14 LAND AS ELIGIBLE CLAIM FOR FEDERAL AS15 SISTANCE. 

16 Section 408(c)(2)(A) of the Robert T. Stafford Dis17 aster Relief and Emergency Assistance Act (42 U.S.C. 

18 5174(c)(2)(A)) is amended— 

19 (1) in clause (i), by striking ‘‘and’’ at the end; 

20 (2) in clause (ii), by striking the period at the 

21 end and inserting ‘‘; and’’; and 

22 (3) by inserting after clause (ii) the following: 

23 ‘‘(iii) the removal, clearance, and dis24 posal of debris from private property that 
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•S 1766 IS 

1 is the result of an emergency or major dis2 aster.’’. 

3 SEC. 209. STAFFORD ACT WAIVER. 

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law, the Secretary of Homeland Security, acting 

6 through the Director of the Federal Emergency Manage7 ment Agency (referred to in this section as the ‘‘Sec8 retary’’), shall directly reimburse, on an ongoing basis, all 

9 costs associated with the restoration, reconstruction, reha10 bilitation, or installation of privately-owned utility infra11 structure damaged or destroyed by Hurricane Katrina, in12 cluding— 

13 (1) electric transmission, distribution, genera14 tion, and related electric infrastructure facilities in 

15 the State of Louisiana (including the city of New 

16 Orleans); and 

17 (2) natural gas distribution facilities in Lou18 isiana. 

19 (b) DISTRIBUTION OF FUNDS.— 

20 (1) DOCUMENTATION.—The Secretary shall 

21 provide reimbursement under this section directly to 

22 the affected, privately-owned utilities upon receipt of 

23 reasonable documentation of costs and expenses in24 curred by the utilities. 
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1 (2) PRESUMPTION AND DISTRIBUTION.—In the 

2 absence of a finding of good cause, the Secretary 

3 shall— 

4 (A) presume documentation received under 

5 paragraph (1) not later than December 1, 

6 2005, to be valid; and 

7 (B) distribute funds in accordance with 

8 this section not later than December 31, 2005. 

9 (3) LATE RECEIPT OF DOCUMENTATION.—To 

10 the extent that documentation is received by the 

11 Secretary under paragraph (1) after December 1, 

12 2005, in the absence of a finding of good cause, the 

13 Secretary shall— 

14 (A) presume the documentation to be valid; 

15 and 

16 (B) distribute funds in accordance with 

17 this section not later than 60 days after the 

18 date of receipt of the documentation. 

19 (4) FINDING OF GOOD CAUSE.— 

20 (A) IN GENERAL.—In carrying out this 

21 subsection, the Secretary shall— 

22 (i) have a 5-day period, beginning on 

23 the date of receipt of documentation under 

24 paragraph (2) or (3), to make a finding of 

25 good cause to withhold funds under this 
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•S 1766 IS 

1 section with respect to the whole or partial 

2 adequacy of the documentation; and 

3 (ii) immediately provide notice of such 

4 a finding to the privately-owned utility that 

5 submitted the documentation. 

6 (B) CONTENTS OF NOTICE; WITHHOLDING

7 OF FUNDS.—The Secretary— 

8 (i) shall include in a notice provided 

9 under subparagraph (A)(ii) a specific de10 scription of the supplemental documenta11 tion required to address the finding of 

12 good cause with respect to the documenta13 tion originally submitted; and 

14 (ii) shall not withhold distribution of 

15 funds under this section with respect to 

16 any portion of a submission of documenta17 tion under paragraph (2) or (3) that is not 

18 subject to a finding of good cause by the 

19 Secretary. 

20 (C) PROVISION OF SUPPLEMENTAL DOCU21 MENTATION.—A privately-owned utility shall 

22 have a 5-day period, beginning on the date of 

23 receipt of notice of a finding of good cause 

24 under subparagraph (A)(ii), to provide supple25 mental documentation. 
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•S 1766 IS 

1 (D) DISTRIBUTION AFTER RECEIPT.—The 

2 Secretary shall have a 15-day period, beginning 

3 on the date of receipt of appropriate supple4 mental documentation under subparagraph (C), 

5 to distribute funds under this section. 

6 (c) NO EFFECT ON OTHER ASSISTANCE.—No dis7 tribution of funds under this section shall reduce or other8 wise affect the amount of any other funds or assistance 

9 provided to the State of Louisiana (including the city of 

10 New Orleans) in connection with Hurricane Katrina under 

11 any other provision of law. 

12 Subtitle B—Providing Information 

13 and Assistance to Hurricane 

14 Katrina Evacuees 

15 SEC. 211. USE OF DISASTER RELIEF AND EMERGENCY AS16 SISTANCE FUNDS BY INDIVIDUALS AND 

17 HOUSEHOLDS. 

18 (a) IN GENERAL.—Not later than 1 year after the 

19 date of enactment of this Act, the Secretary of Homeland 

20 Security shall establish a review system to ensure that 

21 Federal assistance to individuals and households for dis22 aster relief and emergency assistance under section 408 

23 of the Robert T. Stafford Disaster Relief and Emergency 

24 Assistance Act (42 U.S.C. 5174) or any other provision 
93 

•S 1766 IS 

1 of law, is used by individuals and households only for pur2 poses authorized by that section or provision. 

3 (b) SENSE OF THE SENATE ON PROHIBITION OF

4 USE.—It is the sense of the Senate that no Federal assist5 ance (including Federal funds) to individuals and house6 holds for disaster relief and emergency assistance under 

7 section 408 of the Robert T. Stafford Disaster Relief and 

8 Emergency Assistance Act (42 U.S.C. 5174) or any other 

9 provision of law should be used for gambling purposes in 

10 any gambling establishment or for purchase of non11 essential items, including tobacco products or alcoholic 

12 beverages. 

13 Subtitle C—Emergency 

14 Preparedness and Response 

15 SEC. 221. CREATION OF REGIONAL AND FIELD OFFICE FA16 CILITIES FOR THE DEPARTMENT OF HOME17 LAND SECURITY. 

18 (a) IN GENERAL.—Not later than 365 days after the 

19 date of enactment of this Act, the Secretary of Homeland 

20 Security shall establish consolidated and co-located re21 gional offices for the Department of Homeland Security, 

22 in accordance with section 706 of the Homeland Security 

23 Act of 2002 (6 U.S.C. 346), that will— 

24 (1) enable a rapid, robust, and coordinated 

25 Federal response to threats and incidents; 
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1 (2) enhance all-hazards preparedness across the 

2 United States with respect to terrorism, natural dis3 asters, and other emergencies; 

4 (3) provide integrated capabilities among the 

5 Department of Homeland Security, other Federal 

6 agencies, and State and local governments; 

7 (4) maximize cost savings and efficiencies 

8 through the establishment of regional offices at cur9 rent Department of Homeland Security agency re10 gional structures with contiguous multi-State oper11 ations; and 

12 (5) give priority consideration to the New Orle13 ans Federal City for the placement of a regional 

14 headquarters. 

15 (b) REPORT TO CONGRESS.—Not later than 120 days 

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

17 Homeland Security shall submit a report to Congress de18 tailing plans, locations, and cost estimates for the creation 

19 of a nationwide network of regional offices, in accordance 

20 with this section. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to carry out this section, 

23 $50,000,000, to remain available until expended. 
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1 SEC. 222. APPROPRIATION FOR INTEROPERABLE COMMU2 NICATIONS. 

3 (a) IN GENERAL.—For an additional amount for 

4 interoperable communications, $600,000,000 to remain 

5 available until expended, for discretionary and formula6 based grants for State and local programs administered 

7 by the State Homeland Security Grant Program in the 

8 Office of State and Local Government Coordination and 

9 Preparedness, for technical assistance and guidance to de10 sign, install, and operate comprehensive and effective 

11 interoperable communications systems: Provided, That of 

12 the sums made available under this heading, communica13 tions systems: $600,000,000 shall be available only to the 

14 Louisiana Commission on law Enforcement for implemen15 tation of the Louisiana Totally Interoperable Environment 

16 (LATIE) plan. 

17 (b) GUIDANCE AND TECHNICAL ASSISTANCE.—The 

18 Office for Interoperability and Compatibility of the De19 partment of Homeland Security shall provide guidance 

20 and technical assistance to grant recipients to best utilize 

21 grant funds under this section. 

22 SEC. 223. RESPONSIBILITIES OF THE UNDER SECRETARY 

23 FOR EMERGENCY PREPAREDNESS AND RE24 SPONSE. 

25 Section 502 of the Homeland Security Act of 2002 

26 (6 U.S.C. 312) is amended— 
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•S 1766 IS 

1 (1) in paragraph (6), by striking ‘‘and’’ after 

2 the semicolon; 

3 (2) in paragraph (7), by striking the period and 

4 inserting a colon; and 

5 (3) by adding at the end the following: 

6 ‘‘(8) designing, developing, performing, and 

7 evaluating disaster preparedness exercises at the Na8 tional, State, territorial, regional, local, and tribal 

9 levels of government; and 

10 ‘‘(9) ensuring that such exercises test the capa11 bility of the Nation to prevent, prepare for, respond 

12 to, and recover from natural disasters.’’. 

13 SEC. 224. GOVERNMENT ACCOUNTABILITY OFFICE REPORT 

14 ON FEDERAL FUNDS FOR HURRICANE 

15 KATRINA RECOVERY. 

16 (a) IN GENERAL.—Every calendar quarter, the Gov17 ernment Accountability Office shall submit a report to 

18 Congress on the expenditure and obligation of funds made 

19 from appropriations Acts for Hurricane Katrina recovery 

20 activities. Each report shall include any fraud, abuse, 

21 waste, or mismanagement of such funds. 

22 (b) FIRST REPORT.—The first report under this sec23 tion shall be submitted for the first complete calendar 

24 quarter occurring after the date of enactment of this Act. 
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1 TITLE III—INDIVIDUAL CITIZENS 

2 RELIEF AND RECOVERY 

3 Subtitle A—Housing Relief 

4 SEC. 301. HOUSING VOUCHERS. 

5 (a) SHORT TITLE.—This section may be cited as the 

6 ‘‘Helping to House the Victims of Hurricane Katrina Act 

7 of 2005’’. 

8 (b) HURRICANE KATRINA EMERGENCY ASSISTANCE

9 VOUCHERS.—Section 8(o) of the United States Housing 

10 Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding 

11 at the end the following: 

12 ‘‘(20) HURRICANE KATRINA EMERGENCY AS13 SISTANCE VOUCHERS.— 

14 ‘‘(A) IN GENERAL.—During the 6-month 

15 period beginning on the date of enactment of 

16 the Helping to House the Victims of Hurricane 

17 Katrina Act of 2005, the Secretary shall pro18 vide temporary rental assistance to any indi19 vidual or family, if— 

20 ‘‘(i) the individual or family resides, 

21 or resided on August 29, 2005, in any area 

22 that is subject to a declaration by the 

23 President of a major disaster or emergency 

24 under the Robert T. Stafford Disaster Re25 lief and Emergency Assistance Act (42 
98 

•S 1766 IS 

1 U.S.C. 5121 et seq.) in connection with 

2 Hurricane Katrina; and 

3 ‘‘(ii) the residence of the individual or 

4 family became uninhabitable or inaccessible 

5 as result of that major disaster or emer6 gency. 

7 ‘‘(B) REGULATIONS.—Not later than 30 

8 days after the date of enactment of the Helping 

9 to House the Victims of Hurricane Katrina Act 

10 of 2005, the Secretary shall issue final rules to 

11 establish the procedures applicable to the 

12 issuance of assistance under subparagraph (A). 

13 ‘‘(C) NOTICE.—The Secretary, in consulta14 tion with the Director of the Federal Emer15 gency Management Agency and such other 

16 agencies as the Secretary determines appro17 priate, shall establish procedures for providing 

18 notice of the availability of assistance under 

19 this paragraph to individuals or families that 

20 may be eligible for such assistance. 

21 ‘‘(D) AUTHORITY TO CONTRACT WITH

22 PHA’S AND OTHERS.—The Secretary may con23 tract with any State or local government agency 

24 or public housing agency, or in consultation 

25 with any State or local government agency, with 
99 

•S 1766 IS 

1 any other entity, to ensure that assistance pay2 ments under this paragraph are provided in an 

3 efficient and expeditious manner. 

4 ‘‘(E) WAIVER OF ELIGIBILITY REQUIRE5 MENTS.—In providing assistance under this 

6 paragraph, the Secretary shall waive the re7 quirements under— 

8 ‘‘(i) paragraph (2), relating to tenant 

9 contributions towards rent, except that any 

10 such waiver shall expire on an individual’s 

11 return to work; 

12 ‘‘(ii) paragraph (4), relating to the eli13 gibility of individuals to receive assistance; 

14 ‘‘(iii) subsection (k) and paragraph 

15 (5) of this subsection, relating to 

16 verification of income; 

17 ‘‘(iv) paragraph (7)(A), relating to the 

18 requirement that leases shall be for a term 

19 of 1 year; 

20 ‘‘(v) paragraph (8), relating to initial 

21 inspection of housing units by a public 

22 housing agency; and 

23 ‘‘(vi) subsection (r)(1)(B), relating to 

24 restrictions on portability. 
100 

•S 1766 IS 

1 ‘‘(F) USE OF FUNDS.—Notwithstanding 

2 any other provision of law, funds available for 

3 assistance under this paragraph— 

4 ‘‘(i) shall be made available by the 

5 Secretary to individuals to cover the cost 

6 of— 

7 ‘‘(I) rent; 

8 ‘‘(II) security and utility depos9 its; 

10 ‘‘(III) relocation expenses, includ11 ing expenses incurred in relocating 

12 back to the major disaster area when 

13 such relocation is permitted; and 

14 ‘‘(IV) such additional expenses as 

15 the Secretary determines necessary; 

16 and 

17 ‘‘(ii) shall be used by the Secretary— 

18 ‘‘(I) for payments to public hous19 ing agencies, State or local govern20 ment agencies, or other voucher ad21 ministrators for vouchers used to as22 sist individuals or families affected by 

23 the major disaster or emergency de24 scribed in this paragraph up to their 

25 authorized level of vouchers, if any 
101 

•S 1766 IS 

1 such vouchers are not otherwise fund2 ed; and 

3 ‘‘(II) to provide operating sub4 sidies to public housing agencies for 

5 public housing units provided to indi6 viduals or families affected by the 

7 major disaster or emergency described 

8 in this paragraph, if such a subsidy 

9 was not previously provided for those 

10 units. 

11 ‘‘(G) PAYMENT STANDARD.—For purposes 

12 of this paragraph, the payment standard for 

13 each size of dwelling unit in a market area may 

14 not exceed 150 percent, or higher if the Sec15 retary approves of such increase, of the fair 

16 market rental established under subsection (c) 

17 for the same size dwelling unit in the same 

18 market area, and shall be not less than 90 per19 cent of that fair market rental. 

20 ‘‘(H) NONDISCRIMINATION.—In selecting 

21 individuals or families for tenancy, a landlord 

22 or owner may not exclude or penalize an indi23 vidual or family solely because any portion of 

24 the rental payment of that individual or family 

25 is provided under this paragraph. 
102 

•S 1766 IS 

1 ‘‘(I) TERMINATION OF ASSISTANCE.—As2 sistance provided under this paragraph shall 

3 terminate 6 months after the date on which 

4 such assistance was received. 

5 ‘‘(21) ASSISTANCE FOR CURRENT VOUCHER RE6 CIPIENTS AFFECTED BY HURRICANE KATRINA.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 waive any of the requirements described in 

9 clauses (i) through (vi) of paragraph (20)(E) 

10 for any individual or family receiving assistance 

11 under this section on August 29, 2005, if— 

12 ‘‘(i) the individual or family resides, 

13 or resided on August 29, 2005, in any area 

14 that is subject to a declaration by the 

15 President of a major disaster or emergency 

16 under the Robert T. Stafford Disaster Re17 lief and Emergency Assistance Act (42 

18 U.S.C. 5121 et seq.) in connection with 

19 Hurricane Katrina; and 

20 ‘‘(ii) the residence of the individual or 

21 family became uninhabitable or inaccessible 

22 as result of that major disaster or emer23 gency. 

24 ‘‘(B) ADDITIONAL USES OF FUNDS.—Not25 withstanding any other provision of law, the 
103 

•S 1766 IS 

1 Secretary shall provide, as the Secretary deter2 mines appropriate, supplemental assistance to 

3 an individual or family receiving assistance 

4 under this section on August 29, 2005, and 

5 meeting the requirements described in subpara6 graph (A), to assist the individual or family 

7 with the additional costs of relocating to new 

8 housing, including to cover— 

9 ‘‘(i) the additional cost of rent and 

10 utilities; 

11 ‘‘(ii) security and utility deposits; 

12 ‘‘(iii) relocation expenses, including 

13 expenses incurred in relocating back to the 

14 major disaster area when such relocation is 

15 permitted; and 

16 ‘‘(iv) such additional expenses as the 

17 Secretary determines necessary. 

18 ‘‘(C) PAYMENT STANDARD.—For purposes 

19 of this paragraph, the payment standard for 

20 each size of dwelling unit in a market area may 

21 not exceed 150 percent, or higher if the Sec22 retary approves of such increase, of the fair 

23 market rental established under subsection (c) 

24 for the same size dwelling unit in the same 
104 

•S 1766 IS 

1 market area, and shall be not less than 90 per2 cent of that fair market rental. 

3 ‘‘(D) NONDISCRIMINATION.—A landlord or 

4 owner may not exclude or penalize an individual 

5 or family solely because that individual or fam6 ily is eligible for any waivers or benefits pro7 vided under this paragraph. 

8 ‘‘(E) TERMINATION OF AUTHORITY.—The 

9 authority of the Secretary to provide assistance 

10 under this paragraph shall apply during the 6- 

11 month period beginning on the date of enact12 ment of the Helping to House the Victims of 

13 Hurricane Katrina Act of 2005. 

14 ‘‘(22) AUTHORITY OF THE SECRETARY TO DI15 RECTLY ADMINISTER VOUCHERS WHEN PHA’S ARE

16 UNABLE TO DO SO.—If the Secretary determines 

17 that a public housing agency is unable to implement 

18 the provisions of this subsection due to the effects 

19 of Hurricane Katrina, the Secretary may— 

20 ‘‘(A) directly administer any voucher pro21 gram described in paragraphs (1) through (20); 

22 and 

23 ‘‘(B) perform the functions assigned to a 

24 public housing agency by this subsection.’’. 
105 

•S 1766 IS 

1 (c) REPORT ON INVENTORY OF AVAILABILITY OF

2 TEMPORARY HOUSING.—Not later than 10 days after the 

3 date of enactment of this Act, the Secretary of Defense, 

4 the Administrator of the General Services Administration, 

5 the Secretary of Agriculture, and such other agency heads 

6 as the Secretary of Housing and Urban Development de7 termines appropriate, shall compile and report to the Sec8 retary of Housing and Urban Development an inventory 

9 of Federal civilian and defense facilities that can be 

10 used— 

11 (1) to provide emergency housing; or 

12 (2) as locations for the construction or deploy13 ment of temporary housing units. 

14 (d) APPROPRIATION OF FUNDING.— 

15 (1) IN GENERAL.—There are authorized to be 

16 appropriated and are appropriated $3,500,000,000 

17 to provide assistance under this section. 

18 (2) EMERGENCY DESIGNATION.—The amount 

19 appropriated under paragraph (1) is designated as 

20 an emergency requirement pursuant to section 402 

21 of H. Con. Res. 95 (109th Congress). 

22 SEC. 302. HOME PROGRAM. 

23 (a) WAIVER OF INCOME AND RENT REQUIREMENTS

24 UNDER HOME PROGRAM.—For purposes of eligibility for 

25 occupancy, and the amount of rent paid for such occu-
106 

•S 1766 IS 

1 pancy, in housing assisted under subtitles A through D 

2 of title II of the Cranston-Gonzalez National Affordable 

3 Housing Act (42 U.S.C. 12721 et seq.), in the case of 

4 any family displaced as a result of Hurricane Katrina, for 

5 the 6-month period that begins upon the initial occupancy 

6 of such family in such housing— 

7 (1) no provision of such title establishing a limi8 tation on the income of an eligible family shall 

9 apply; and 

10 (2) no provision of such title establishing or re11 quiring a rental payment by an eligible family resid12 ing in housing assisted under such subtitle shall 

13 apply. 

14 (b) SUSPENSION OF MATCHING CONTRIBUTION RE15 QUIREMENT UNDER HOME PROGRAM.—Notwithstanding 

16 any provision of section 220 of the Cranston-Gonzalez Na17 tional Affordable Housing Act (42 U.S.C. 12750), the re18 quirement under subsection (a) of such section to make 

19 contributions shall not apply with respect to the State of 

20 Louisiana or any communities in such State impacted by 

21 Hurricane Katrina for funds allocated in fiscal years 2005 

22 and 2006. 

23 SEC. 303. FIRST TIME HOME BUYER EXPANSION. 

24 Notwithstanding any other provision of law, for pur25 poses of the second sentence of subparagraph (A) of sec-
107 

•S 1766 IS 

1 tion 203(c)(2) of the National Housing Act (12 U.S.C. 

2 1709(c)(2)(A), any family that is displaced as a result of 

3 Hurricane Katrina shall be considered until December 31, 

4 2007, to be a first-time homebuyer who has completed a 

5 program of counseling with respect to the responsibilities 

6 and financial management involved in homeownership that 

7 is approved by the Secretary of Housing and Urban Devel8 opment. 

9 SEC. 304. HOME BUSINESS AND MORTGAGE PROTECTION 

10 FUND. 

11 (a) ESTABLISHMENT.—There is established in the 

12 Treasury of the United States the Home Business and 

13 Mortgage Protection Fund (hereafter referred to in this 

14 section as the ‘‘Fund’’). 

15 (b) GRANTS AUTHORIZED.— 

16 (1) IN GENERAL.—The Secretary of Housing 

17 and Urban Development is authorized to award 

18 grants from the Fund only for the purposes de19 scribed in subsection (d). 

20 (2) CAP ON GRANTS.—For each missed, past 

21 due, or late mortgage payment for which an eligible 

22 financial institution seeks a grant under this section, 

23 the Secretary shall not award amounts out of the 

24 Fund to such financial institution for such mortgage 

25 payments in cumulative excess of an amount equal 
108 

•S 1766 IS 

1 to the sum of 6 times the value of such mortgage 

2 payment. 

3 (3) AVAILABILITY OF GRANTS.—The authority 

4 of the Secretary to make grants under this section 

5 shall terminate on the date that is 1 year after the 

6 date of enactment of this Act. 

7 (c) APPLICATION.— 

8 (1) IN GENERAL.—An eligible financial institu9 tion seeking a grant under this section shall submit 

10 an application to the Secretary of Housing and 

11 Urban Development at such time, in such manner, 

12 and containing such information as the Secretary 

13 may require, including providing proper documenta14 tion to the Secretary that— 

15 (A) such financial institution is the holder 

16 of a mortgage; 

17 (B) mortgage payments have not been re18 ceived by such financial institution from a 

19 mortgagee; 

20 (C) a mortgagee was unable to pay such 

21 mortgage payments due to financial hardship; 

22 (D) the property on which the mortgage is 

23 held is located in an affected area; 

24 (E) after August 26, 2005, the mortgagee 

25 missed at least 2 consecutive mortgage pay-
109 

•S 1766 IS 

1 ments, inclusive of all applicable grace periods; 

2 and 

3 (F) such financial institution has not initi4 ated any foreclosure proceeding against any 

5 property held by a mortgagee for which the fi6 nancial institution is seeking a grant. 

7 (2) FINANCIAL HARDSHIP DEFINED.— 

8 (A) IN GENERAL.—Not later than 30 days 

9 after the date of enactment of this Act, the Sec10 retary shall issue regulations setting forth the 

11 definition of financial hardship under para12 graph (1)(C). 

13 (B) REQUIRED CONTENT.—The definition 

14 required under subparagraph (A) shall in15 clude— 

16 (i) complete destruction of a mortga17 gee’s— 

18 (I) home; 

19 (II) business; or 

20 (III) place of business or employ21 ment site; and 

22 (ii) the fact that such mortgagee is 

23 now unemployed due to Hurricane 

24 Katrina. 
110 

•S 1766 IS 

1 (d) USE OF FUNDS.—Amounts in the Fund may only 

2 be used to provide grants to eligible financial institutions 

3 to reimburse such financial institutions for missed, past 

4 due, or late mortgage payments owed to such financial in5 stitutions on properties located in an affected area. 

6 (e) FORECLOSURE.— 

7 (1) IN GENERAL.—An eligible financial institu8 tion that does not seek a grant under this section, 

9 and initiates a foreclosure proceeding against any 

10 property held by a mortgagee in an affected area 

11 may not foreclose on such property, if the mortgagee 

12 can provide evidence of financial hardship as defined 

13 under subsection (c)(2). 

14 (2) REIMBURSEMENT FROM FUND.—If an eligi15 ble financial institution is unable to foreclose under 

16 paragraph (1), such financial institution may seek a 

17 grant under this section for reimbursement of the 

18 missed, past due, or late mortgage payments leading 

19 to foreclosure notwithstanding the requirement 

20 under subsection (c)(1)(F). 

21 (3) LIMITATION.—An eligible financial institu22 tion shall not be allowed to seek a grant for missed, 

23 past due, or late mortgage payments under this sec24 tion for any foreclosure proceeding initiated prior to 

25 August 26, 2005. 
111 

•S 1766 IS 

1 (f) CREDIT PROTECTION.—Any failure by a mort2 gagee to make a mortgage payment on any property lo3 cated in an affected area shall not be reported to any con4 sumer reporting agency, as such term is defined under sec5 tion 603 of the Fair Credit Reporting Act (15 U.S.C. 

6 1681a). 

7 (g) DEPOSITS.— 

8 (1) IN GENERAL.—The Secretary of the Treas9 ury shall transfer up to $5,000,000,000 from the 

10 general fund of the Treasury to the Fund to permit 

11 the implementation of this section. 

12 (2) INVESTMENT.—To the extent that amounts 

13 in the Fund at any time exceed the immediate needs 

14 of the Fund, the excess shall be invested in short 

15 term obligations of the United States. 

16 (3) INTEREST.—To the extent that interest ac17 crues on any funds invested under paragraph (2), 

18 that interest shall be made available for the pur19 poses of this section. 

20 (h) REVERSION OF FUNDS TO THE TREASURY.—Any 

21 amounts in the Fund that are unexpended and unobli22 gated after March 30, 2007, shall be covered into the gen23 eral fund of the Treasury as miscellaneous receipts and 

24 the Fund shall be terminated. 
112 

•S 1766 IS 

1 (i) REGULATIONS.—Not later than 30 days after the 

2 date of enactment of this Act, the Secretary of Housing 

3 and Urban Development shall issue regulations necessary 

4 to carry out the administration of this section and to en5 sure that the purposes of this section are accomplished. 

6 (j) ELIGIBLE FINANCIAL INSTITUTION.—The term 

7 ‘‘eligible financial institution’’ means any commercial 

8 bank, community bank, mortgage bank, credit union, or 

9 any other lender approved by the Secretary of Housing 

10 and Urban Development as eligible for insurance under 

11 section 2 of the National Housing Act (12 U.S.C. 1703). 

12 SEC. 305. COMMUNITY DEVELOPMENT BLOCK GRANT PRO13 GRAM. 

14 (a) INCREASE OF MAXIMUM PROJECT ASSISTANCE

15 AMOUNT UNDER CDBG PROGRAM.—Notwithstanding 

16 any other provision of law, $10,000,000 shall be available 

17 for any project assisted or to be assisted with amounts 

18 made available in fiscal year 2005, 2006, or 2007 under 

19 the community development block grant program under 

20 title I of the Housing and Community Development Act 

21 of 1974 (42 U.S.C. 5301 et seq.) and where such project 

22 is carried out within an affected area. 

23 (b) REGULATORY FLEXIBILITY UNDER CDBG PRO24 GRAM.—In administering any amounts made available 

25 under the community development block grant program 
113 

•S 1766 IS 

1 under title I of the Housing and Community Development 

2 Act of 1974 for fiscal year 2005 or 2006 within declared 

3 disaster areas— 

4 (1) the Secretary may waive any provision of 

5 any statute or regulation that the Secretary admin6 isters in connection with obligation by the Secretary 

7 or any use by any recipient of such amounts; and 

8 (2) the requirements of such title regarding use 

9 of funds made available under such title for activi10 ties that benefit persons of low and moderate income 

11 shall not apply. 

12 SEC. 306. RURAL HOUSING AND ECONOMIC DEVELOPMENT 

13 PROGRAM. 

14 In carrying out the Rural Housing and Economic De15 velopment program of the Department of Housing and 

16 Urban Development, the Secretary of Housing and Urban 

17 Development shall waive, with respect to any assistance 

18 provided during fiscal year 2005 or 2006 under such pro19 gram for any activities carried out within any affected 

20 area— 

21 (1) any limitation on the income of persons as22 sisted under such program; and 

23 (2) any requirement on the part of a grantee to 

24 provide matching amounts or to make contributions 
114 

•S 1766 IS 

1 to activities assisted with amounts provided under 

2 such program. 

3 SEC. 307. DEFINITIONS. 

4 For purposes of the preceding six sections, the term 

5 ‘‘affected area’’ means any area— 

6 (1) for which the President has declared a 

7 major disaster pursuant to title IV of the Robert T. 

8 Stafford Disaster Relief and Emergency Assistance 

9 Act as a result of Hurricane Katrina; or 

10 (2) that is determined to be eligible for disaster 

11 relief under other Federal law by reason of damage 

12 related to Hurricane Katrina. 

13 Subtitle B—TANF Relief 

14 SEC. 311. REIMBURSEMENT OF STATES FOR TANF BENE15 FITS PROVIDED TO ASSIST FAMILIES FROM 

16 OTHER STATES AFFECTED BY HURRICANE 

17 KATRINA. 

18 (a) IN GENERAL.—Section 3 of the TANF Emer19 gency Response and Recovery Act of 2005 is amended to 

20 read as follows: 
115 

•S 1766 IS 

1 ‘‘SEC. 3. REIMBURSEMENT OF STATES FOR TANF BENEFITS 

2 PROVIDED TO ASSIST FAMILIES FROM 

3 OTHER STATES AFFECTED BY HURRICANE 

4 KATRINA. 

5 ‘‘(a) ELIGIBILITY FOR PAYMENTS FROM THE CON6 TINGENCY FUND.— 

7 ‘‘(1) PERIOD OF APPLICABILITY.—Beginning 

8 with August 29, 2005, and ending with September 

9 30, 2006, a State described in paragraph (2) or (3) 

10 shall be considered a needy State for purposes of 

11 section 403(b) of the Social Security Act. 

12 ‘‘(2) DIRECT IMPACT STATE.—A State de13 scribed in this paragraph is Louisiana. 

14 ‘‘(3) OTHER STATES.—A State is described in 

15 this paragraph if the State provides any benefit or 

16 service that may be provided under the State pro17 gram funded under part A of title IV of the Social 

18 Security Act to a family which— 

19 ‘‘(A) has resided in a direct impact State; 

20 and 

21 ‘‘(B) has travelled (not necessarily directly) 

22 to the State from such direct impact State as 

23 a result of the hurricane. 

24 ‘‘(b) MONTHLY PAYMENTS.— 

25 ‘‘(1) IN GENERAL.—Notwithstanding section 

26 403(b)(3)(C)(i) of the Social Security Act, the total 
116 

•S 1766 IS 

1 amount paid during a month to a State described 

2 in— 

‘‘(A) subsection (a)(2), shall not exceed 1 3 ⁄4

4 of 20 percent of the State family assistance 

5 grant; and 

6 ‘‘(B) subsection (a)(3), shall not exceed the 

7 lesser of— 

8 ‘‘(i) total amount of benefits or serv9 ices provided under the State program 

10 funded under part A of title IV of the So11 cial Security Act to families described in 

12 subsection (a)(3); or 

‘‘(ii) 1 13 ⁄4 of 20 percent of the State 

14 family assistance grant. 

15 ‘‘(c) NO STATE MATCH OR MAINTENANCE OF EF16 FORT REQUIRED.—Sections 403(b)(6) and 409(a)(10) of 

17 the Social Security Act shall not apply with respect to a 

18 payment made to a State by reason of this section. 

19 ‘‘(d) INCREASE IN FUNDING TO THE EXTENT NEC20 ESSARY.—During the period described in subsection 

21 (a)(1), section 403(b)(2) of the Social Security Act (42 

22 U.S.C. 603(b)(2)) shall be applied without regard to the 

23 limitation on the total amount specified in that section.’’. 

24 (b) RETROACTIVE EFFECTIVE DATE.—The amend25 ment made by subsection (a) shall take effect as if in-
117 

•S 1766 IS 

1 cluded in the enactment of the TANF Emergency Re2 sponse and Recovery Act of 2005. 

3 SEC. 312. INCREASE IN AMOUNT OF ADDITIONAL TANF 

4 FUNDS AVAILABLE FOR HURRICANE-DAM5 AGED STATES. 

6 (a) IN GENERAL.—Section 4 of the TANF Emer7 gency Response and Recovery Act of 2005 is amended— 

8 (1) in subsection (a)(2), by striking ‘‘20 per9 cent’’ and inserting ‘‘40 percent’’; and 

10 (2) in subsection (b), in the matter preceding 

11 paragraph (1), by inserting ‘‘(at any time during or 

12 after the period described in section 3(a)(1))’’ after 

13 ‘‘may not be imposed’’. 

14 (b) RETROACTIVE EFFECTIVE DATE.—The amend15 ments made by subsection (a) shall take effect as if in16 cluded in the enactment of the TANF Emergency Re17 sponse and Recovery Act of 2005. 

18 SEC. 313. WORK REQUIREMENTS AND TIME LIMITS UNDER 

19 TANF PROGRAM NOT TRIGGERED BY RE20 CEIPT OF TEMPORARY TANF BENEFITS BY 

21 FAMILIES AFFECTED BY HURRICANE 

22 KATRINA. 

23 Benefits provided on a short-term, nonrecurring basis 

24 under a State program funded under part A of title IV 

25 of the Social Security Act, during the period that begins 
118 

•S 1766 IS 

1 with the date of the enactment of this Act and ends with 

2 the end of fiscal year 2006, to meet a subsistence need 

3 of a family resulting from Hurricane Katrina shall not be 

4 considered assistance for purposes of sections 407 and 

5 408(a)(7) of the Social Security Act. 

6 SEC. 314. EMERGENCY DESIGNATION. 

7 Each amount provided in this title is designated as 

8 an emergency requirement pursuant to section 402 of H. 

9 Con. Res. 95 (109th Congress). 

10 Subtitle C—Medicaid, Medicare, 

11 and Other Health Disaster Relief 

12 SEC. 321. DEFINITIONS. 

13 In this subtitle: 

14 (1) DIRECT IMPACT PARISH.— 

15 (A) IN GENERAL.—The term ‘‘direct im16 pact parish’’ means a parish in the State of 

17 Louisiana for which a major disaster has been 

18 declared in accordance with section 401 of the 

19 Robert T. Stafford Disaster Relief and Emer20 gency Assistance Act (42 U.S.C. 5170) as a re21 sult of Hurricane Katrina and which the Presi22 dent has determined, before September 14, 

23 2005, warrants individual and public assistance 

24 from the Federal Government under such Act. 
119 

•S 1766 IS 

1 (B) EXCLUSION.—Such term does not in2 clude a parish in the State of Louisiana which 

3 the President has determined warrants only 

4 public assistance from the Federal Government 

5 under such Act as a result of Hurricane 

6 Katrina. 

7 (C) AUTHORITY TO RELY ON WEBSITE

8 POSTED DESIGNATIONS.—The Secretary of 

9 Health and Human Services shall post on the 

10 Internet website for the Centers for Medicare & 

11 Medicaid Services a list of parishes and coun12 ties identified as direct impact parishes in ac13 cordance with this paragraph. Any such parish 

14 that is posted on such website as a direct im15 pact parish shall be treated for purposes of sub16 paragraph (A) as described in such subpara17 graph. 

18 (2) DRM COVERAGE PERIOD.— 

19 (A) IN GENERAL.—The term ‘‘DRM cov20 erage period’’ means the period beginning on 

21 August 28, 2005, and, subject to subparagraph 

22 (B), ending on the date that is 5 months after 

23 the date of enactment of this Act. 

24 (B) PRESIDENTIAL AUTHORITY TO EX25 TEND DRM COVERAGE PERIOD.— 
120 

•S 1766 IS 

1 (i) IN GENERAL.—The President may 

2 extend the DRM coverage period for an 

3 additional 5 months. Any reference to the 

4 term ‘‘DRM coverage period’’ in this title 

5 shall include any extension under this 

6 clause. 

7 (ii) NOTICE TO CONGRESS AND

8 STATES.—The President shall notify the 

9 Majority and Minority Leaders of the Sen10 ate, the Speaker of the House of Rep11 resentatives, the Minority Leader of the 

12 House of Representatives, the Chairs and 

13 Ranking Members of the Committee on Fi14 nance of the Senate and the Committees 

15 on Energy and Commerce and Ways and 

16 Means of the House of Representatives, 

17 and the States at least 30 days prior to— 

18 (I) extending the DRM coverage 

19 period; or 

20 (II) if the President determines 

21 not to extend such period, the ending 

22 date described in subparagraph (A). 

23 (3) KATRINA SURVIVOR.— 
121 

•S 1766 IS 

1 (A) IN GENERAL.—The term ‘‘Katrina 

2 Survivor’’ means an individual who is described 

3 in subparagraph (B) or (C). 

4 (B) RESIDENTS AND EVACUEES OF DIRECT

5 IMPACT PARISHES.—An individual who, on any 

6 day during the week preceding August 28, 

7 2005, had a primary residence in a direct im8 pact parish. 

9 (C) INDIVIDUALS WHO LOST EMPLOY10 MENT.—An individual whose— 

11 (i) worksite, on any day during the 

12 week preceding August 28, 2005, was lo13 cated in a direct impact parish; and 

14 (ii) employment with an employer 

15 which conducted an active trade or busi16 ness on August 28, 2005, in a direct im17 pact parish and with respect to whom such 

18 trade or business is inoperable on any day 

19 after August 28, 2005, and before January 

20 1, 2006, as a result of damage sustained 

21 in connection with Hurricane Katrina, is 

22 terminated. 

23 (D) TREATMENT OF CURRENT MEDICAID

24 BENEFICIARIES.—Nothing in this title shall be 

25 construed as preventing an individual who is 
122 

•S 1766 IS 

1 otherwise entitled to medical assistance under 

2 title XIX of the Social Security Act from being 

3 treated as a Katrina Survivor under this title. 

4 (E) TREATMENT OF HOMELESS PER5 SONS.—For purposes of this title, in the case of 

6 an individual who was homeless on any day 

7 during the week described in subparagraph (B), 

8 the individual’s ‘‘residence’’ shall be deemed to 

9 be the place of residence as otherwise deter10 mined for such an individual under title XIX of 

11 the Social Security Act. 

12 (4) POVERTY LINE.—The term ‘‘poverty line’’ 

13 has the meaning given that term in section 

14 2110(c)(5) of the Social Security Act (42 U.S.C. 

15 1397jj(c)(5)). 

16 (5) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Health and Human Services. 

18 (6) STATE.—The term ‘‘State’’ has the mean19 ing given that term for purposes of title XIX of the 

20 Social Security Act (42 U.S.C 1396 et seq.). 

21 SEC. 322. DISASTER RELIEF MEDICAID. 

22 (a) AUTHORITY TO PROVIDE DISASTER RELIEF

23 MEDICAID.—Notwithstanding any provision of title XIX 

24 of the Social Security Act, a State shall, as a condition 

25 of participation in the Medicaid program established 
123 

•S 1766 IS 

1 under title XIX of the Social Security Act (42 U.S.C. 

2 1396 et seq.), provide medical assistance to DRM-eligible 

3 Katrina Survivors (as defined in subsection (b)) under a 

4 State medicaid plan established under such title during 

5 the DRM coverage period in accordance with the following 

6 provisions of this section and without submitting an 

7 amendment to the State Medicaid plan. Such assistance 

8 shall be referred to as ‘‘DRM assistance’’. 

9 (b) DRM-ELIGIBLE KATRINA SURVIVOR DE10 FINED.— 

11 (1) IN GENERAL.—In this section, the term 

12 ‘‘DRM-eligible Katrina Survivor’’ means a Katrina 

13 Survivor whose family income does not exceed the 

14 higher of— 

15 (A) 100 percent (200 percent, in the case 

16 of such a Survivor who is a pregnant woman, 

17 child, or a recipient of disability benefits under 

18 section 223 of the Social Security Act) of the 

19 poverty line; or 

20 (B) the income eligibility standard which 

21 would apply to the Survivor under the State 

22 Medicaid plan. 

23 (2) NO RESOURCES, RESIDENCY, OR CATEGOR24 ICAL ELIGIBILITY REQUIREMENTS.—Eligibility 

25 under paragraph (1) shall be determined without ap-
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1 plication of any resources test, State residency, or 

2 categorical eligibility requirements. 

3 (3) INCOME DETERMINATION.— 

4 (A) LEAST RESTRICTIVE INCOME METH5 ODOLOGIES.—The State shall use the least re6 strictive methodologies applied under the State 

7 medicaid plan under section 1902(r)(2) of the 

8 Social Security Act (42 U.S.C. 1396a(r)(2)) in 

9 determining income eligibility for Katrina Sur10 vivors under paragraph (1). 

11 (B) DISREGARD OF UI COMPENSATION

12 AND DISASTER RELIEF ASSISTANCE.—In deter13 mining such income eligibility, the State shall 

14 disregard— 

15 (i) any amount received under a law 

16 of the United States or of a State which 

17 is in the nature of unemployment com18 pensation by a Katrina Survivor during the 

19 DRM coverage period, including unemploy20 ment assistance provided under section 

21 410 of the Robert T. Stafford Disaster Re22 lief and Emergency Assistance Act (42 

23 U.S.C. 5177); and 

24 (ii) any assistance provided (in cash 

25 or in kind) to a Katrina Survivor from any 
125 

•S 1766 IS 

1 public or private entity as a result of Hur2 ricane Katrina. 

3 (4) DEFINITION OF CHILD.—For purposes of 

4 paragraph (1), a DRM-eligible Katrina Survivor 

5 shall be determined to be a ‘‘child’’ in accordance 

6 with the definition of ‘‘child’’ under the State Med7 icaid plan. 

8 (c) ELIGIBILITY DETERMINATION; NO CONTINU9 ATION OF DRM ASSISTANCE.— 

10 (1) STREAMLINED ELIGIBILITY PROCESS.—The 

11 State shall use the following streamlined procedures 

12 in processing applications and determining eligibility 

13 for DRM assistance for DRM-eligible Katrina Sur14 vivors: 

15 (A) A common 1-page application form de16 veloped by the Secretary of Health and Human 

17 Services in consultation with the National Asso18 ciation of State Medicaid Directors. Such form 

19 shall— 

20 (i) require an applicant to provide an 

21 expected address for the duration of the 

22 DRM coverage period and to agree to up23 date that information if it changes during 

24 such period; 
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•S 1766 IS 

1 (ii) include notice regarding the pen2 alties for making a fraudulent application 

3 under subsection (h); 

4 (iii) require the applicant to assign to 

5 the State any rights of the applicant (or 

6 any other person who is a DRM-eligible 

7 Katrina Survivor and on whose behalf the 

8 applicant has the legal authority to execute 

9 an assignment of such rights) under any 

10 group health plan or other third-party cov11 erage for health care; and 

12 (iv) require the applicant to list any 

13 health insurance coverage which the appli14 cant was enrolled in immediately prior to 

15 submitting such application. 

16 (B) Self-attestation by the applicant that 

17 the applicant— 

18 (i) is a DRM-eligible Katrina Sur19 vivor; and 

20 (ii) if applicable, requires home and 

21 community-based services provided under 

22 such DRM assistance in accordance with 

23 subsection (d)(3). 

24 (C) No requirement for documentation evi25 dencing the basis on which the applicant quali-
127 

•S 1766 IS 

1 fies to be a DRM-eligible Katrina Survivor or, 

2 if applicable, requires home and community3 based services. 

4 (D) Issuance of a DRM assistance eligi5 bility card to an applicant who completes such 

6 application, including the self-attestation re7 quired under subparagraph (B). Such card shall 

8 be valid as long as the DRM coverage period is 

9 in effect and shall be accompanied by notice of 

10 the termination date for the DRM coverage pe11 riod and, if applicable, notice that such termi12 nation date may be extended. If the President 

13 extends the DRM coverage period, the State 

14 shall notify DRM-eligible Katrina Survivors en15 rolled in DRM assistance of the new termi16 nation date for the DRM coverage period. 

17 (E) If an applicant completes the applica18 tion and presents it to a provider or facility 

19 participating in the State medicaid plan that is 

20 qualified to make presumptive eligibility deter21 minations under such plan (which at a min22 imum shall consist of facilities identified in sec23 tion 1902(a)(55) of the Social Security Act (42 

24 U.S.C. 1396a(a)(55)) and it appears to the pro25 vider that the applicant is a DRM-eligible 
128 

•S 1766 IS 

1 Katrina Survivor based on the information in 

2 the application, the applicant will be deemed to 

3 be a DRM-eligible Katrina Survivor eligible for 

4 DRM assistance in accordance with this section, 

5 subject to subsection (g). 

6 (F) Continuous eligibility, without the need 

7 for any redetermination of eligibility, for the 

8 duration of the DRM coverage period. 

9 (2) NO CONTINUATION OF DRM ASSISTANCE.— 

10 (A) IN GENERAL.—Except as provided in 

11 subparagraphs (B) and (C), no DRM assistance 

12 shall be provided after the end of the DRM cov13 erage period. 

14 (B) PRESUMPTIVE ELIGIBILITY.—In the 

15 case of any DRM-eligible Katrina Survivor who 

16 is receiving DRM assistance from a State in ac17 cordance with this section and who, as of the 

18 end of the DRM coverage period, has an appli19 cation pending for medical assistance under the 

20 State medicaid plan for periods beginning after 

21 the end of such period, the State shall provide 

22 such Survivor with a period of presumptive eli23 gibility for medical assistance under the State 

24 Medicaid plan (not to exceed 60 days) until a 
129 

•S 1766 IS 

1 determination with respect to the Survivor’s ap2 plication has been made. 

3 (C) PREGNANT WOMEN.—In the case of a 

4 DRM-eligible Katrina Survivor who is receiving 

5 DRM assistance from a State in accordance 

6 with this section and whose pregnancy ended 

7 during the 60-day period prior to the end of the 

8 DRM coverage period, or who is pregnant as of 

9 the end of such period, such Survivor shall con10 tinue to be eligible for DRM assistance after 

11 the end of the DRM coverage period, including 

12 (but not limited to) for all pregnancy-related 

13 and postpartum medical assistance available 

14 under the State Medicaid plan, through the end 

15 of the month in which the 60-day period (begin16 ning on the last day of her pregnancy) ends. 

17 (3) TREATMENT OF KATRINA SURVIVORS PRO18 VIDED ASSISTANCE PRIOR TO DATE OF ENACT19 MENT.—Any Katrina Survivor who is provided med20 ical assistance under a State medicaid plan in ac21 cordance with guidance from the Secretary during 

22 the period that begins on August 28, 2005, and ends 

23 on the date of enactment of this Act shall be treated 

24 as a DRM-eligible Katrina Survivor, without the 
130 

•S 1766 IS 

1 need to file an additional application, for purposes of 

2 eligibility for DRM assistance under this section. 

3 (d) SCOPE OF COVERAGE.— 

4 (1) CATEGORICALLY NEEDY BENEFITS.—The 

5 State shall treat a DRM-eligible Katrina Survivor as 

6 an individual eligible for medical assistance under 

7 the State plan under title XIX of the Social Security 

8 Act on the basis of section 1902(a)(10)(A)(i) of the 

9 Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)), 

10 with coverage for such assistance retroactive to 

11 items and services furnished on or after August 28, 

12 2005 (or in the case of applications for DRM assist13 ance submitted after January 1 2006, the first day 

14 of the 5th month preceding the date on which such 

15 application is submitted). 

16 (2) EXTENDED MENTAL HEALTH AND CARE CO17 ORDINATION BENEFITS.—The State may provide, 

18 without regard to any restrictions on amount, dura19 tion, and scope, comparability, or restrictions other20 wise applicable under the State medicaid plan (other 

21 than restrictions applicable under such plan with re22 spect to services provided in an institution for men23 tal diseases), to DRM-eligible Katrina Survivors ex24 tended mental health and care coordination benefits 

25 which may include the following: 
131 

•S 1766 IS 

1 (A) Screening, assessment, and diagnostic 

2 services (including specialized assessments for 

3 individuals with cognitive impairments). 

4 (B) Coverage for a full range of mental 

5 health medications at the dosages and fre6 quencies prescribed by health professionals for 

7 depression, post-traumatic stress disorder, and 

8 other mental disorders. 

9 (C) Treatment of alcohol and substance 

10 abuse determined to result from circumstances 

11 related to Hurricane Katrina. 

12 (D) Psychotherapy, rehabilitation and 

13 other treatments administered by psychiatrists, 

14 psychologists, or social workers for conditions 

15 exacerbated by, or resulting from, Hurricane 

16 Katrina. 

17 (E) In-patient mental health care. 

18 (F) Family counseling for families where a 

19 member of the immediate family is a Katrina 

20 Survivor or first responder to Hurricane 

21 Katrina or includes an individual who has died 

22 as a result of Hurricane Katrina. 

23 (G) In connection with the provision of 

24 health and long-term care services, arranging 

25 for, (and when necessary, enrollment in waiver 
132 

•S 1766 IS 

1 programs or other specialized programs), and 

2 coordination related to, primary and specialty 

3 medical care, which may include personal care 

4 services, durable medical equipment and sup5 plies, assistive technology, and transportation. 

6 (3) HOME AND COMMUNITY-BASED SERV7 ICES.— 

8 (A) IN GENERAL.—In the case of a State 

9 with a waiver to provide home and community10 based services granted under section 1115 of 

11 the Social Security Act or under subsection (c) 

12 or (d) of section 1915 of such Act, the State 

13 may provide such services to DRM-eligible 

14 Katrina Survivors who self-attest in accordance 

15 with subsection (c)(1)(B)(ii) that they require 

16 immediate home and community-based services 

17 that are available under such waiver without re18 gard to whether the Survivors would require the 

19 level of care provided in a hospital, nursing fa20 cility, or intermediate care facility for the men21 tally retarded, including to DRM-eligible 

22 Katrina Survivors who are individuals described 

23 in subparagraph (B). 
133 

•S 1766 IS 

1 (B) INDIVIDUALS DESCRIBED.—Individ2 uals described in this subparagraph are individ3 uals who— 

4 (i) on any day during the week pre5 ceding August 28, 2005— 

6 (I) had been receiving home and 

7 community-based services under a 

8 waiver described in subparagraph (A) 

9 in a direct impact parish; 

10 (II) had been receiving support 

11 services from a primary family care12 giver who, as a result of Hurricane 

13 Katrina, is no longer available to pro14 vide services; or 

15 (III) had been receiving personal 

16 care, home health, or rehabilitative 

17 services under the State medicaid plan 

18 or under a waiver granted under sec19 tion 1915 or 1115 of the Social Secu20 rity Act; or 

21 (ii) are disabled (as determined under 

22 the State medicaid plan). 

23 (C) WAIVER OF RESTRICTIONS.—The Sec24 retary shall waive with respect to the provision 
134 

•S 1766 IS 

1 of home and community-based services under 

2 this paragraph any limitations on— 

3 (i) the number of individuals who 

4 shall receive home or community-based 

5 services under a waiver described in sub6 paragraph (A); 

7 (ii) budget neutrality requirements ap8 plicable to such waiver; and 

9 (iii) targeted populations eligible for 

10 services under such waiver. 

11 The Secretary may waive other restrictions ap12 plicable under such a waiver, that would pre13 vent a State from providing home and commu14 nity-based services in accordance with this 

15 paragraph. 

16 (4) CHILDREN BORN TO PREGNANT WOMEN.— 

17 In the case of a child born to a DRM-eligible 

18 Katrina Survivor who is provided DRM assistance 

19 during the DRM coverage period, such child shall be 

20 treated as having been born to a pregnant woman el21 igible for medical assistance under the State med22 icaid plan and shall be eligible for medical assistance 

23 under such plan in accordance with section 

24 1902(e)(4) of the Social Security Act (42 U.S.C. 

25 1396a(e)(4)). The Federal medical assistance per-
135 

•S 1766 IS 

1 centage applicable to the State medicaid plan shall 

2 apply to medical assistance provided to a child under 

3 such plan in accordance with the preceding sentence. 

4 (e) TERMINATION OF COVERAGE; ASSISTANCE WITH

5 APPLYING FOR REGULAR MEDICAID COVERAGE.— 

6 (1) NOTICE OF EXPECTED TERMINATION OF

7 DRM COVERAGE PERIOD.—A State shall provide 

8 DRM-eligible Katrina Survivors who are receiving 

9 DRM assistance from the State in accordance with 

10 this section, as of the beginning of the 4th month 

11 (and, if applicable, 9th month) of the DRM coverage 

12 period with— 

13 (A) notice of the expected termination date 

14 for DRM assistance for such period; 

15 (B) information regarding eligibility for 

16 medical assistance under the State’s eligibility 

17 rules otherwise applicable under the State med18 icaid plan; and 

19 (C) an application for such assistance and 

20 information regarding where to obtain assist21 ance with completing such application in ac22 cordance with paragraph (2). 

23 (2) APPLICATION ASSISTANCE.—A State shall 

24 provide DRM-eligible Katrina Survivors who are re25 ceiving DRM assistance from the State in accord-
136 

•S 1766 IS 

1 ance with this section with assistance in applying for 

2 medical assistance under the State medicaid plan for 

3 periods beginning after the end of the DRM cov4 erage period, at State Medicaid offices and at loca5 tions easily accessible to such Survivors. 

6 (3) STATE REPORTS.—A State providing DRM 

7 assistance in accordance with this section shall sub8 mit to the Secretary the following reports: 

9 (A) TERMINATION AND TRANSITION AS10 SISTANCE TO REGULAR MEDICAID COVERAGE

11 FOR DRM-ELIGIBLE KATRINA SURVIVORS ELIGI12 BLE FOR SUCH ASSISTANCE.—A report detail13 ing how the State intends to satisfy the require14 ments of paragraphs (1) and (2). 

15 (B) ENROLLMENT.—Reports regarding— 

16 (i) the number of Katrina Survivors 

17 who are determined to be DRM-eligible 

18 Katrina Survivors; and 

19 (ii) the number of DRM-eligible 

20 Katrina Survivors who are determined to 

21 be eligible for, and enrolled in, the State 

22 medicaid plan. 

23 (4) SECRETARIAL OVERSIGHT.—The Secretary 

24 of Health and Human Services shall ensure that a 

25 State is complying with the requirements of para-
137 

•S 1766 IS 

1 graphs (1) and (2) and that applications for medical 

2 assistance under the State medicaid plan from 

3 DRM-eligible Katrina Survivors for periods begin4 ning after the end of the DRM coverage period are 

5 processed in a timely and appropriate manner. 

6 (5) NO PRIVATE RIGHT OF ACTION AGAINST A

7 STATE FOR FAILURE TO PROVIDE NOTICE.—No pri8 vate right of action shall be brought against a State 

9 for failure to provide the notices required under 

10 paragraph (1) or subsection (c)(1) so long as the 

11 State makes a good faith effort to provide such no12 tices. 

13 (f) 100 PERCENT FEDERAL MATCHING PAY14 MENTS.— 

15 (1) IN GENERAL.—Notwithstanding section 

16 1905(b) of the Social Security Act (42 U.S.C. 

17 1396d(b), the Federal medical assistance percentage 

18 or the Federal matching rate otherwise applied 

19 under section 1903(a) of such Act (42 U.S.C. 

20 1396b(a)) shall be 100 percent for— 

21 (A) providing DRM assistance to DRM-eli22 gible Katrina Survivors during the DRM cov23 erage period in accordance with this section; 

24 (B) costs directly attributable to adminis25 trative activities related to the provision of such 
138 

•S 1766 IS 

1 DRM assistance, including costs attributable to 

2 obtaining recoveries under subsection (h); 

3 (C) costs directly attributable to providing 

4 application assistance in accordance with sub5 section (e)(2); and 

6 (D) DRM assistance provided in accord7 ance with subparagraph (B) or (C) of sub8 section (c)(2) after the end of the DRM cov9 erage period. 

10 (2) DISREGARD OF PAYMENTS.—Payments pro11 vided to a State in accordance with this subsection 

12 shall be disregarded for purposes of applying sub13 sections (f) and (g) of section 1108 of the Social Se14 curity Act (42 U.S.C. 1308). 

15 (g) VERIFICATION OF STATUS AS A KATRINA SUR16 VIVOR.— 

17 (1) IN GENERAL.—The State shall make a good 

18 faith effort to verify the status of an individual who 

19 is enrolled in the State Medicaid plan as a DRM-eli20 gible Katrina Survivor under the provisions of this 

21 section. Such effort shall not delay the determina22 tion of the eligibility of the Survivor for DRM assist23 ance under this section. 

24 (2) EVIDENCE OF VERIFICATION.—A State may 

25 satisfy the verification requirement under subpara-
139 

•S 1766 IS 

1 graph (A) with respect to an individual by showing 

2 that the State providing DRM assistance obtained 

3 information from the Social Security Administration, 

4 the Internal Revenue Service, or the State Medicaid 

5 Agency for the State from which individual is from 

6 (if the individual was not a resident of such State 

7 on any day during the week preceding August 28, 

8 2005). 

9 (h) PENALTY FOR FRAUDULENT APPLICATIONS.— 

10 (1) INDIVIDUAL LIABLE FOR COSTS.—If a 

11 State, as the result of verification activities con12 ducted under subsection (g) or otherwise, determines 

13 after a fair hearing that an individual has knowingly 

14 made a false self-attestation described in subsection 

15 (c)(1)(B), the State may, subject to paragraph (2), 

16 seek recovery from the individual for the full amount 

17 of the cost of DRM assistance provided to the indi18 vidual under this section. 

19 (2) EXCEPTION.—The Secretary shall exempt a 

20 State from seeking recovery under paragraph (1) if 

21 the Secretary determines that it would not be cost22 effective for the State to do so. 

23 (3) REIMBURSEMENT TO THE FEDERAL GOV24 ERNMENT.—Any amounts recovered by a State in 
140 

•S 1766 IS 

1 accordance with this subsection shall be returned to 

2 the Federal government. 

3 (i) EXEMPTION FROM ERROR RATE PENALTIES.—All 

4 payments attributable to providing DRM assistance in ac5 cordance with this section shall be disregarded for pur6 poses of section 1903(u) of the Social Security Act (42 

7 U.S.C. 1396b(u)). 

8 (j) PROVIDER PAYMENT RATES.—In the case of any 

9 DRM assistance provided in accordance with this section 

10 to a DRM-eligible Katrina Survivor that is covered under 

11 the State medicaid plan (as applied without regard to this 

12 section) the State shall pay a provider of such assistance 

13 the same payment rate as the State would otherwise pay 

14 for the assistance if the assistance were provided under 

15 the State medicaid plan (or, if no such payment rate ap16 plies under the State medicaid plan, the usual and cus17 tomary prevailing rate for the item or service for the com18 munity in which it is provided). 

19 (k) APPLICATION TO INDIVIDUALS ELIGIBLE FOR

20 MEDICAL ASSISTANCE.—Nothing in this section shall be 

21 construed as affecting any rights accorded to an individual 

22 who is a recipient of medical assistance under a State 

23 medicaid plan who is determined to be a DRM-eligible 

24 Katrina Survivor but the provision of DRM assistance to 
141 

•S 1766 IS 

1 such individual shall be limited to the provision of such 

2 assistance in accordance with this section. 

3 SEC. 323. TARGETED MEDICAID RELIEF FOR DIRECT IM4 PACT PARISHES. 

5 (a) 100 PERCENT FEDERAL MATCHING PAYMENTS

6 FOR MEDICAL ASSISTANCE PROVIDED IN DIRECT IMPACT

7 PARISH.— 

8 (1) IN GENERAL.—Notwithstanding section 

9 1905(b) of the Social Security Act (42 U.S.C. 

10 1396d(b)), for items and services furnished during 

11 the period that begins on August 28, 2005, and ends 

12 on December 31, 2006, the Federal medical assist13 ance percentage for providing medical assistance 

14 under a State medicaid plan under title XIX of the 

15 Social Security Act to any individual, including a 

16 Katrina Survivor, residing in a parish of the State 

17 of Louisiana described in subsection (c) shall be 100 

18 percent. 

19 (2) APPLICATION TO ENHANCED FMAP.—The 

20 100 percent Federal medical assistance percentage 

21 applicable under subsection (a) shall also apply for 

22 purposes of determining the enhanced FMAP (as de23 fined in section 2105(b) of the Social Security Act 

24 (42 U.S.C. 1397ee(b)) for child health assistance 

25 provided under a State child health plan under title 
142 

•S 1766 IS 

1 XXI of such Act in such a parish or county during 

2 the period described in such subsection. 

3 (b) MORATORIUM ON REDETERMINATIONS.—During 

4 the DRM coverage period, the State of Louisiana shall not 

5 be required to conduct eligibility redeterminations under 

6 the State’s medicaid plan. 

7 (c) PARISH OR COUNTY DESCRIBED.—For purposes 

8 of subsection (a), a parish or county described in this sub9 section is a parish or county for which a major disaster 

10 has been declared in accordance with section 401 of the 

11 Robert T. Stafford Disaster Relief and Emergency Assist12 ance Act (42 U.S.C. 5170) as a result of Hurricane 

13 Katrina and which the President has determined, as of 

14 September 14, 2005, warrant individual or public assist15 ance from the Federal Government under such Act. 

16 SEC. 324. AUTHORITY TO WAIVE REQUIREMENTS DURING 

17 NATIONAL EMERGENCIES WITH RESPECT TO 

18 EVACUEES FROM AN EMERGENCY AREA. 

19 (a) IN GENERAL.—Section 1135(g)(1) of the Social 

20 Security Act (42 U.S.C. 1320b–5(g)(1)) is amended by 

21 adding at the end the following: 

22 ‘‘Any geographical area in which the Secretary de23 termines there are a significant number of evacuees 

24 from an area that is considered to be an emergency 

25 area under the preceding sentence shall be consid-
143 

•S 1766 IS 

1 ered to be an ‘emergency area’ for purposes of this 

2 section.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall take effect as if enacted on August 

5 28, 2005. 

6 SEC. 325. EMERGENCY ASSISTANCE FOR STATES WITH RE7 SPECT TO THE FEDERAL MEDICAL ASSIST8 ANCE PERCENTAGE FOR FISCAL YEAR 2006. 

9 If the Federal medical assistance percentage (as de10 fined in section 1905(b) of the Social Security Act (42 

11 U.S.C. 1396d(b))) determined for a State for fiscal year 

12 2006 is less than the Federal medical assistance percent13 age determined for the State for fiscal year 2005, the Fed14 eral medical assistance percentage for the State for fiscal 

15 year 2005 shall apply to the State for fiscal year 2006 

16 for purposes of titles XIX and XXI of the Social Security 

17 Act (42 U.S.C. 1396 et seq., 1397aa et seq.). 

18 SEC. 326. EMERGENCY ASSISTANCE TO MEDICARE BENE19 FICIARIES. 

20 (a) EXCLUSION OF DRM COVERAGE PERIOD IN

21 COMPUTING MEDICARE PART B LATE ENROLLMENT PE22 RIOD.—In applying the first sentence of section 1839(b) 

23 of the Social Security Act (42 U.S.C. 1395r(b)) in the case 

24 of an individual who, on any day during the week pre25 ceding August 28, 2005, had a residence in a direct im-
144 

•S 1766 IS 

1 pact parish, there shall not be taken into account any 

2 month any part of which is within the DRM coverage pe3 riod. 

4 (b) WRITTEN PLAN ON TRANSITION OF CERTAIN

5 FULL-BENEFIT DUAL ELIGIBLE INDIVIDUALS TO PRE6 SCRIPTION DRUG COVERAGE UNDER MEDICARE PART

7 D.—Not later than October 7, 2005, the Secretary of 

8 Health and Human Services shall submit to Congress a 

9 written plan on how the Secretary will provide for the 

10 transition of coverage of prescription drugs for full-benefit 

11 dual eligible individuals (as defined in section 1935(c)(6) 

12 of the Social Security Act (42 U.S.C. 1396u–5(c)(6)) who, 

13 on any day during the week preceding August 28, 2005, 

14 had a residence in a direct impact parish, from the med15 icaid program under title XIX of such Act to the medicare 

16 program under part D of title XVIII of such Act. 

17 SEC. 327. 80 PERCENT FEDERAL MATCHING PAYMENTS 

18 UNDER MEDICAID FOR UNCOMPENSATED 

19 CARE PROVIDED TO SURVIVORS OF HURRI20 CANE KATRINA. 

21 (a) IN GENERAL.—Notwithstanding section 1903(a) 

22 or 1905(b) of the Social Security Act (42 U.S.C. 

23 1396a(a), 1396d(b)), during the DRM coverage period 

24 that begins on April 30, 2006— 
145 

•S 1766 IS 

1 (1) expenditures described in subsection (b) 

2 shall be treated as medical assistance provided under 

3 the State Medicaid plan of the State of Louisiana; 

4 and 

5 (2) the Federal medical assistance percentage 

6 for such expenditures, and for any administrative 

7 costs that are attributable to such expenditures, 

8 shall be 80 percent. 

9 (b) EXPENDITURES DESCRIBED.—For purposes of 

10 subsection (a), the expenditures in this subsection are the 

11 following: 

12 (1) Expenditures of the State of Louisiana for 

13 reimbursing a hospital located in the State of Lou14 isiana for any uncompensated care provided to sur15 vivors of Hurricane Katrina. 

16 (2) Expenditures of the State of Louisiana for 

17 reimbursing a physician whose practice is located in 

18 the State of Louisiana for any uncompensated costs 

19 incurred as a result of providing items or services to 

20 survivors of Hurricane Katrina. 

21 (3) Expenditures of the State of Louisiana for 

22 reimbursing a Federally-qualified health center or 

23 rural health clinic located in the State of Louisiana 

24 for any uncompensated costs incurred as a result of 
146 

•S 1766 IS 

1 providing items or services to survivors of Hurricane 

2 Katrina. 

3 (c) CRITERIA FOR DISBURSING OF PAYMENTS.—The 

4 head of the Louisiana Department of Health and Hos5 pitals shall establish criteria for making the reimburse6 ments described in subsection (b). 

7 SEC. 328. DISASTER RELIEF FUND FOR PAYMENTS FOR PRI8 VATE HEALTH INSURANCE COVERAGE. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Treasury of the United States the Disaster Relief Fund 

11 (in this section referred to as the ‘‘Fund’’) which— 

12 (1) shall be administered by the Secretary of 

13 Health and Human Services (in this section referred 

14 to as the ‘‘Secretary’’); and 

15 (2) shall consist of amounts made available 

16 under subsection (e). 

17 (b) USE OF AMOUNTS IN FUND.—Amounts in the 

18 Fund shall be used by the Secretary to make payments 

19 to State insurance commissioners for the purpose of mak20 ing payments to health insurance issuers— 

21 (1) on behalf of individuals who had coverage 

22 as of August 29, 2005 for such individual’s share of 

23 their health insurance premium; and 

24 (2) on behalf of qualified employers for the em25 ployer share of their employee’s health insurance 
147 

•S 1766 IS 

1 premiums, but only with respect to the days on 

2 which the employer meets the definition under sub3 section (c). 

4 (c) QUALIFIED EMPLOYER DEFINED.—For purposes 

5 of subsection (b)(2), the term ‘‘qualified employer’’ means 

6 any employer— 

7 (1) which conducted an active trade or business 

8 on August 28, 2005, in a Hurricane Katrina dis9 aster area; and 

10 (2) with respect to whom the trade or business 

11 described in paragraph (1)— 

12 (A) is inoperable on any day during the 

13 disaster relief period as a result of damage sus14 tained in connection with Hurricane Katrina; or 

15 (B) is not paying salary or benefits to em16 ployees on any day during the disaster relief pe17 riod as a result of damage sustained in connec18 tion with Hurricane Katrina. 

19 (d) APPROPRIATION.—Out of any money in the 

20 Treasury not otherwise appropriated, there is appro21 priated to the Fund, $400,000,000 for fiscal year 2005, 

22 to remain available until expended. 
148 

•S 1766 IS 

1 SEC. 329. ELIGIBILITY OF KATRINA SURVIVORS FOR RE2 FUNDABLE CREDIT FOR HEALTH INSURANCE 

3 COSTS AND ASSISTANCE WITH HEALTH IN4 SURANCE COVERAGE UNDER NATIONAL 

5 EMERGENCY GRANTS. 

6 Notwithstanding sections 35, 7527, and 6050T of the 

7 Internal Revenue Code of 1986, and section 173(f) of the 

8 Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), 

9 during the disaster relief period, for purposes of applying 

10 such sections— 

11 (1) a Katrina Survivor (as defined in section 

12 323(a)(1)) shall be deemed to be an eligible indi13 vidual; and 

14 (2) section 35(a) of such Code shall be applied 

15 with respect to a Katrina Survivor by substituting 

16 ‘‘100 percent’’ for ‘‘65 percent’’. 

17 SEC. 330A. NATIONAL HEALTH SERVICE CORPS. 

18 (a) DESIGNATION AS HEALTH PROFESSIONAL

19 SHORTAGE AREA.—Notwithstanding section 332(a)(1) of 

20 the Public Health Service Act (42 U.S.C. 254e(a)(1)), an 

21 area in which the President has declared that a major dis22 aster exists, in accordance with section 401 of the Robert 

23 T. Stafford Disaster Relief and Emergency Assistance Act 

24 (42 U.S.C. 5170) related to Hurricane Katrina, shall be 

25 designated as a health professional shortage area as de26 scribed in such section 332. 
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1 (b) SCHOLARSHIP PROGRAMS.—Notwithstanding sec2 tion 338A(d)(2) of the Public Health Service Act (42 

3 U.S.C. 254l(d)(2)), in providing contracts under the 

4 Scholarship Program under subpart III of part D of title 

5 III of the Public Health Service Act (42 U.S.C. 254l et 

6 seq.), the Secretary of Health and Human Services shall 

7 give first priority to any application from an individual 

8 who agrees to serve in a health professional shortage area 

9 affected by Hurricane Katrina, as described in subsection 

10 (a). 

11 (c) LOAN REPAYMENT PROGRAMS.—The Secretary 

12 of Health and Human Services shall operate a loan repay13 ment program to encourage eligible health care profes14 sionals to move to and continue to serve in a health profes15 sional shortage area affected by Hurricane Katrina, as de16 scribed in subsection (a), in the same manner and subject 

17 to the same requirements and restrictions as the Loan Re18 payment Program operated by the Secretary under sub19 part III of part D of title III of the Public Health Service 

20 Act (42 U.S.C. 254l et seq.), except that the total amount 

21 that the Secretary may pay for loan repayment on behalf 

22 of an individual participating in the loan repayment pro23 gram under this subsection shall be not more than 

24 $50,000 for 2 years of obligated service by the individual. 
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1 SEC. 300A. COMMUNITY HEALTH CENTER GRANTS. 

2 (a) PRIORITY.—In awarding grants under section 

3 330 of the Public Health Service Act (42 U.S.C. 254b), 

4 the Secretary of Health and Human Services shall give 

5 priority to applicants applying on behalf of a community 

6 health center located in an area in which the President 

7 has declared that a major disaster exists, in accordance 

8 with section 401 of the Robert T. Stafford Disaster Relief 

9 and Emergency Assistance Act (42 U.S.C. 5170) related 

10 to Hurricane Katrina. 

11 (b) WAIVER.—In awarding and administering grants 

12 under section 330 of the Public Health Service Act (42 

13 U.S.C. 254b) relating to community health centers located 

14 in Louisiana, the Secretary of Health and Human Services 

15 shall waive any requirement or eligibility criteria that the 

16 Secretary determines appropriate, including any require17 ment that a community health center must be operated 

18 as a free-standing clinic. 

19 (c) DEEMED ELIGIBILITY.—In the case of any health 

20 provider located in a parish of the State of Louisiana for 

21 which the President has declared that a major disaster 

22 exists, in accordance with section 401 of the Robert T. 

23 Stafford Disaster Relief and Emergency Assistance Act 

24 (42 U.S.C. 5170) related to Hurricane Katrina and which 

25 has applied for a grant under section 330 of the Public 

26 Health Service Act (42 U.S.C. 254b) during the 1-year 
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1 period preceding the date of enactment of this Act and 

2 which is still pending as of such date, such provider shall 

3 be presumptively eligible for a federally qualified health 

4 center look alike designation until such time as a deter5 mination on such application is made. 

6 SEC. 330B. TELEMEDICINE. 

7 Notwithstanding any other provision of law, the Sec8 retary may waive licensing and certification requirements 

9 relating to telemedicine for health professionals providing 

10 diagnosis and treatment services to assist in treating vic11 tims of a public health emergency as declared by the Sec12 retary under section 319 of the Public Health Service Act 

13 (42 U.S.C. 247d). Such a waiver may include provisions 

14 permitting payments to health professionals who provide 

15 such services. 

16 SEC. 330C. PENALTIES FOR FRAUDULENT USE OF LICEN17 SURE. 

18 Chapter 47 of title 18, United States Code, is amend19 ed by adding at the end the following: 

20 ‘‘§ 1039. Fraudulent use of medical credentials 

21 ‘‘Whoever knowingly or willingly— 

22 ‘‘(1) falsifies a medical license or certification; 

23 ‘‘(2) make any materially false, fictitious, or 

24 fraudulent statement or representation with respect 

25 to a medical license or certification; 
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1 ‘‘(3) makes or uses any false writing or docu2 ment relating to a medical license or certification 

3 knowing the same to contain any materially false, 

4 fictitious, or fraudulent statement or entry; or 

5 ‘‘(4) provides medical treatment or services to 

6 an individual while intentionally misrepresenting 

7 that such person is appropriately licensed or cer8 tified to provide such services; 

9 shall be fined under this title, imprisoned not more than 

10 5 years, or both.’’. 

11 SEC. 330D. WAIVER OF CERTAIN MEDICARE QUALITY RE12 PORTING REQUIREMENTS FOR HOSPITALS. 

13 (a) IN GENERAL.—During the disaster relief period, 

14 section 1886(b)(3)(B)(vii) of the Social Security Act (42 

15 U.S.C. 1395ww(b)(3)(B)(vii)) shall not apply to a hospital 

16 that is located in any parish affected by Hurricane 

17 Katrina (as defined in subsection (b)). 

18 (b) DIRECT IMPACT PARISH DEFINED.— 

19 (1) IN GENERAL.—In this section, the term ‘‘di20 rect impact parish’’ means a parish in the State of 

21 Louisiana for which a major disaster has been de22 clared in accordance with section 401 of the Robert 

23 T. Stafford Disaster Relief and Emergency Assist24 ance Act (42 U.S.C. 5170) as a result of Hurricane 

25 Katrina and which the President has determined, 
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1 before September 14, 2005, warrants individual and 

2 public assistance from the Federal Government 

3 under such Act. 

4 (2) EXCLUSION.—Such term does not include a 

5 parish in the State of Louisiana which the President 

6 has determined warrants only public assistance from 

7 the Federal Government under such Act as a result 

8 of Hurricane Katrina. 

9 (3) AUTHORITY TO RELY ON WEBSITE POSTED

10 DESIGNATIONS.—The Secretary of Health and 

11 Human Services shall post on the Internet website 

12 for the Centers for Medicare & Medicaid Services a 

13 list of parishes identified as direct impact parishes 

14 in accordance with this paragraph. Any such parish 

15 that is posted on such website as a direct impact 

16 parish shall be treated for purposes of paragraph (1) 

17 as described in such paragraph. 

18 SEC. 330E. MORATORIUM ON REDETERMINATIONS. 

19 During the disaster relief period, the State of Lou20 isiana shall not be required to conduct eligibility redeter21 minations under the State’s medicaid plan under title XIX 

22 of the Social Security Act (42 U.S.C. 1396 et seq.). 
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1 SEC. 330F. ACCOMMODATION OF SPECIAL NEEDS OF 

2 KATRINA SURVIVORS UNDER MEDICARE PRO3 GRAM. 

4 (a) EXCLUSION OF DISASTER RELIEF PERIOD IN

5 COMPUTING PART B LATE ENROLLMENT PENALTY.—In 

6 applying the first sentence of section 1839(b) of the Social 

7 Security Act (42 U.S.C. 1395r(b)) in the case of a Katrina 

8 Survivor, there shall not be taken into account any month 

9 any part of which is within the disaster relief period or 

10 within the 2-month period following the end of such dis11 aster relief period. 

12 (b) PART D.— 

13 (1) EXTENSION OF INITIAL ENROLLMENT PE14 RIOD.—In the case of a Katrina Survivor, the initial 

15 enrollment period under section 1860D–1(b)(2) of 

16 the Social Security Act (42 U.S.C. 1395w– 

17 101(b)(2)) shall in no case end before May 15, 

18 2007. 

19 (2) FLEXIBILITY IN DOCUMENTATION FOR

20 LOW-INCOME SUBSIDIES.—For purposes of carrying 

21 out section 1860D–14 of the Social Security Act (42 

22 U.S.C. 1395w–114), with respect to Katrina Sur23 vivors, the Secretary of Health and Human Services 

24 shall establish documentation rules for Katrina Sur25 vivors which take into account the loss and unavail26 ability of documents due to Hurricane Katrina. 
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1 SEC. 330G. MEDICARE PROVIDERS AND SUPPLIERS. 

2 Notwithstanding any provision of titles XI or XVIII 

3 of the Social Security Act, the Secretary of Health and 

4 Human Services shall establish procedures to ensure that 

5 whenever a provider of services (as defined in subsection 

6 (u) of section 1861 of such Act (42 U.S.C. 1395x)) or 

7 a supplier (as defined in subsection (d) of such section) 

8 under the Medicare program under title XVIII of such Act 

9 temporarily ceases offering items or services or relocates 

10 to another community as a result of a natural disaster 

11 or act of terrorism, such temporary cessation of business 

12 or relocation shall not result in a termination of the pro13 vider of service’s provider agreement or the supplier’s 

14 Medicare participation, or have any adverse impact on any 

15 terms or provisions of the provider’s Medicare certifi16 cation, supplier’s Medicare participation, or a hospital’s 

17 Inpatient Prospective Payment System exclusion status or 

18 classification; but only if the provider or supplier satisfies 

19 all conditions for Medicare certification and participation 

20 upon relocating or resuming to provide items or services 

21 under the Medicare program. 

22 Subtitle D—Bankruptcy Relief 

23 SEC. 331. DEFINITIONS; WHO MAY BE A DEBTOR. 

24 (a) CURRENT MONTHLY INCOME.—Section 

25 101(10A)(B) of title 11, United States Code, is amend26 ed— 
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1 (1) by striking ‘‘and payments’’ and inserting 

2 ‘‘payments’’; and 

3 (2) by inserting before the period at the end the 

4 following: ‘‘, and payments to victims of a natural 

5 disaster by a governmental unit or by a qualified re6 ligious or charitable entity or organization, as de7 fined in section 548(d)(4), which were made solely 

8 on account of their status as victims of such natural 

9 disaster’’. 

10 (b) NATURAL DISASTER; NATURAL DISASTER

11 ZONE.—Section 101 of title 11, United States Code, is 

12 amended— 

13 (1) by redesignating paragraphs (40A) and 

14 (40B) as paragraphs (40C) and (40D), respectively; 

15 and 

16 (2) by inserting after paragraph (40) the fol17 lowing: 

18 ‘‘(40A) The term ‘natural disaster’ means a 

19 major disaster, as defined in section 102 of the Rob20 ert T. Stafford Disaster Relief and Emergency As21 sistance Act. 

22 ‘‘(40B) The term ‘natural disaster zone’ means 

23 the geographical area included in the determination 

24 of a natural disaster.’’. 
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1 (c) VICTIM OF NATURAL DISASTER.—Section 101 of 

2 title 11, United States Code, is amended by adding at the 

3 end the following: 

4 ‘‘(56) The term ‘victim of a natural disaster’ 

5 means an individual whose financial condition is ma6 terially adversely affected due to— 

7 ‘‘(A) damage sustained to the principal 

8 residence of that person, where such residence 

9 is located in a natural disaster zone, as a result 

10 of a natural disaster; 

11 ‘‘(B) an inability to remain at the principal 

12 residence of that person, where such residence 

13 is located in a natural disaster zone, as a result 

14 of a natural disaster; or 

15 ‘‘(C) an inability to work at the principal 

16 place of employment of that person, where such 

17 place of employment is located in a natural dis18 aster zone, as a result of a natural disaster.’’. 

19 (d) WHO MAY BE A DEBTOR.—Section 109(h)(4) of 

20 title 11, United States Code, is amended by inserting 

21 ‘‘natural disaster,’’ after ‘‘disability,’’. 

22 SEC. 332. AMENDMENTS TO CHAPTER 5. 

23 Section 521 of title 11, United States Code, is 

24 amended by adding at the end the following: 
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1 ‘‘(k) The court, after notice and a hearing upon mo2 tion of the debtor, may extend any time period specified 

3 in this section as may be necessary, if the court finds 

4 that— 

5 ‘‘(1) the debtor is a victim of a natural disaster; 

6 and 

7 ‘‘(2) the status of the debtor as a victim of a 

8 natural disaster necessitates such extension of 

9 time.’’. 

10 SEC. 333. AMENDMENTS TO CHAPTER 7. 

11 (a) REASONABLE NECESSARY EXPENSES.—Section 

12 707(b)(2)(A)(ii) of title 11, United States Code, is amend13 ed by adding at the end the following: 

14 ‘‘(VI) In addition, the monthly expenses of the debtor 

15 may include the actual reasonably necessary expenses in16 curred as a result of being a victim of a natural disaster 

17 if the debtor provides documentation of such expenses, 

18 and a detailed explanation of why such expenses are rea19 sonable and necessary, and why such expenses are not ac20 counted for by the national standards, local standards, 

21 and other necessary expenses referred to in subclause 

22 (I).’’. 

23 (b) NATURAL DISASTER.—Section 707(b)(2)(B)(i) of 

24 title 11, United States Code, is amended by inserting ‘‘or 
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1 a natural disaster’’ after ‘‘such as a serious medical condi2 tion or a call or order to active duty in the Armed Forces’’. 

3 SEC. 334. AMENDMENTS TO CHAPTER 11. 

4 (a) CONVERSION OF CASE.—Section 1112(b) of title 

5 11, United States Code, is amended— 

6 (1) in paragraph (2)(B)(i), by inserting ‘‘, in7 cluding a natural disaster’’ before the semicolon; and 

8 (2) in paragraph (3), by inserting ‘‘(including a 

9 natural disaster)’’ after ‘‘circumstances’’. 

10 (b) WHO MAY FILE A PLAN.—Section 1121(e)(3) of 

11 title 11, United States Code, is amended— 

12 (1) in subparagraph (A), by inserting ‘‘(i)’’ 

13 after ‘‘(A)’’; 

14 (2) in subparagraph (C), by striking the period 

15 at the end and inserting ‘‘; or’’; 

16 (3) by redesignating subparagraphs (B) and 

17 (C) as clauses (ii) and (iii), respectively; and 

18 (4) by adding at the end the following: 

19 ‘‘(B) the debtor, after providing notice to 

20 parties in interest (including the United States 

21 trustee) demonstrates that the debtor is unable 

22 to meet the deadline because of a natural dis23 aster and a new deadline is imposed at the time 

24 the extension is granted and the order extend-
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1 ing the time is signed before the expiration of 

2 the existing deadline.’’. 

3 (c) EXTENSION OF TIME FOR SMALL BUSINESSES.— 

4 Chapter 11 of title 11, United States Code, is amended— 

5 (1) in the table of sections, by adding at the 

6 end the following: 

‘‘§1117 Extension of time for small businesses’’; and 

7 (2) in subchapter I, by adding at the end the 

8 following: 

9 ‘‘§ 1117. Extension of time for small businesses 

10 ‘‘In a small business case, the court after notice and 

11 a hearing may extend any deadline specified in this chap12 ter if the court finds that such extension is— 

13 ‘‘(1) necessary to protect the best interests of 

14 creditors and the estate; and 

15 ‘‘(2) warranted by a natural disaster.’’. 

16 SEC. 335. AMENDMENTS TO CHAPTER 13. 

17 (a) CONVERSION OR DISMISSAL.—Section 1307(e) of 

18 title 11, United States Code, is amended by adding at the 

19 end the following: 

20 ‘‘The court, after notice and a hearing on motion of the 

21 debtor, may extend any time period specified in this sub22 section as may be necessary, if— 

23 ‘‘(1) the debtor is a victim of a natural disaster; 
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1 ‘‘(2) the status of the debtor as a victim of a 

2 natural disaster necessitates such extension of time; 

3 and 

4 ‘‘(3) the debtor files an affidavit stating that 

5 such tax return was destroyed or lost as a result of 

6 such natural disaster, and that the debtor has re7 quested a copy of such tax return from the taxing 

8 authority.’’. 

9 (b) FILING OF PREPETITION TAX RETURNS.—Sec10 tion 1308 of title 11, United States Code, is amended by 

11 adding at the end the following: 

12 ‘‘(d) The court, after notice and a hearing on motion 

13 of the debtor, may extend any time period specified in this 

14 subsection as may be necessary, if— 

15 ‘‘(1) the debtor is a victim of a natural disaster; 

16 ‘‘(2) the status of the debtor as a victim of a 

17 natural disaster necessitates such extension of time; 

18 and 

19 ‘‘(3) the debtor files an affidavit stating that 

20 such tax return was destroyed or lost as a result of 

21 such natural disaster and that the debtor has re22 quested a copy of such tax return from the taxing 

23 authority.’’. 
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1 SEC. 336. EFFECTIVE DATE; APPLICATION OF AMEND2 MENTS. 

3 (a) EFFECTIVE DATE.—This subtitle and the amend4 ments made by this subtitle shall take effect on October 

5 18, 2005. 

6 (b) APPLICATION OF AMENDMENTS.—The amend7 ments made by this subtitle shall apply only with respect 

8 to cases commenced under title 11 of the United States 

9 Code after October 17, 2005. 

10 Subtitle E—Unemployment 

11 Compensation 

12 SEC. 341. FEDERAL-STATE AGREEMENTS. 

13 (a) IN GENERAL.—Any State which desires to do so 

14 may enter into and participate in an agreement under this 

15 title with the Secretary of Labor (in this title referred to 

16 as the ‘‘Secretary’’). Any State which is a party to an 

17 agreement under this title may, upon providing 30 days’ 

18 written notice to the Secretary, terminate such agreement. 

19 (b) PROVISIONS OF AGREEMENT.—Any agreement 

20 under subsection (a) shall provide that the State agency 

21 of the State will make payments of temporary extended 

22 unemployment compensation to individuals who— 

23 (1) exhaust all rights to regular compensation 

24 under the State law or under Federal law after Au25 gust 27, 2005; 
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1 (2) have no rights to regular compensation or 

2 extended compensation with respect to a week under 

3 such law or any other State unemployment com4 pensation law or to compensation under any other 

5 Federal law; and 

6 (3) are not receiving compensation with respect 

7 to such week under the unemployment compensation 

8 law of Canada. 

9 (c) EXHAUSTION OF BENEFITS.—For purposes of 

10 subsection (b)(1), an individual shall be deemed to have 

11 exhausted such individual’s rights to regular compensation 

12 under a State law when— 

13 (1) no payments of regular compensation can 

14 be made under such law because such individual has 

15 received all regular compensation available to such 

16 individual based on employment or wages during 

17 such individual’s base period; or 

18 (2) such individual’s rights to such compensa19 tion have been terminated by reason of the expira20 tion of the benefit year with respect to which such 

21 rights existed. 

22 (d) WEEKLY BENEFIT AMOUNT, ETC.—For purposes 

23 of any agreement under this title— 

24 (1) the amount of temporary extended unem25 ployment compensation which shall be payable to 
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1 any individual for any week of total unemployment 

2 shall be equal to the amount of the regular com3 pensation (including dependents’ allowances) payable 

4 to such individual during such individual’s benefit 

5 year under the State law for a week of total unem6 ployment; 

7 (2) the terms and conditions of the State law 

8 which apply to claims for regular compensation and 

9 to the payment thereof shall apply to claims for tem10 porary extended unemployment compensation and 

11 the payment thereof, except— 

12 (A) that an individual shall not be eligible 

13 for temporary extended unemployment com14 pensation under this title unless, in the base pe15 riod with respect to which the individual ex16 hausted all rights to regular compensation 

17 under the State law, the individual had 20 

18 weeks of full-time insured employment or the 

19 equivalent in insured wages, as determined 

20 under the provisions of the State law imple21 menting section 202(a)(5) of the Federal-State 

22 Extended Unemployment Compensation Act of 

23 1970 (26 U.S.C. 3304 note); and 

24 (B) where otherwise inconsistent with the 

25 provisions of this title or with the regulations or 
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1 operating instructions of the Secretary promul2 gated to carry out this title; and 

3 (3) the maximum amount of temporary ex4 tended unemployment compensation payable to any 

5 individual for whom a temporary extended unem6 ployment compensation account is established under 

7 section 342 shall not exceed the amount established 

8 in such account for such individual. 

9 (e) ELECTION BY STATES.—Notwithstanding any 

10 other provision of Federal law (and if State law permits), 

11 the Governor of a State that is in an extended benefit pe12 riod may provide for the payment of temporary extended 

13 unemployment compensation in lieu of extended com14 pensation to individuals who otherwise meet the require15 ments of this section. Such an election shall not require 

16 a State to trigger off an extended benefit period. 

17 SEC. 342. TEMPORARY EXTENDED UNEMPLOYMENT COM18 PENSATION ACCOUNT. 

19 (a) IN GENERAL.—Any agreement under this title 

20 shall provide that the State will establish, for each eligible 

21 individual who files an application for temporary extended 

22 unemployment compensation, a temporary extended un23 employment compensation account with respect to such in24 dividual’s benefit year. 

25 (b) AMOUNT IN ACCOUNT.— 
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1 (1) IN GENERAL.—The amount established in 

2 an account under subsection (a) shall be equal to the 

3 lesser of— 

4 (A) 100 percent of the total amount of 

5 regular compensation (including dependents’ al6 lowances) payable to the individual during the 

7 individual’s benefit year under such law; or 

8 (B) 13 times the individual’s average week9 ly benefit amount for the benefit year. 

10 (2) WEEKLY BENEFIT AMOUNT.—For purposes 

11 of this subsection, an individual’s weekly benefit 

12 amount for any week is the amount of regular com13 pensation (including dependents’ allowances) under 

14 the State law payable to such individual for such 

15 week for total unemployment. 

16 SEC. 343. PAYMENTS TO STATES HAVING AGREEMENTS FOR 

17 THE PAYMENT OF TEMPORARY EXTENDED 

18 UNEMPLOYMENT COMPENSATION. 

19 (a) GENERAL RULE.—There shall be paid to each 

20 State that has entered into an agreement under this title 

21 an amount equal to 100 percent of the temporary extended 

22 unemployment compensation paid to individuals by the 

23 State pursuant to such agreement. 

24 (b) TREATMENT OF REIMBURSABLE COMPENSA25 TION.—No payment shall be made to any State under this 
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1 section in respect of any compensation to the extent the 

2 State is entitled to reimbursement in respect of such com3 pensation under the provisions of any Federal law other 

4 than this title or chapter 85 of title 5, United States Code. 

5 A State shall not be entitled to any reimbursement under 

6 such chapter 85 in respect of any compensation to the ex7 tent the State is entitled to reimbursement under this title 

8 in respect of such compensation. 

9 (c) DETERMINATION OF AMOUNT.—Sums payable to 

10 any State by reason of such State having an agreement 

11 under this title shall be payable, either in advance or by 

12 way of reimbursement (as may be determined by the Sec13 retary), in such amounts as the Secretary estimates the 

14 State will be entitled to receive under this title for each 

15 calendar month, reduced or increased, as the case may be, 

16 by any amount by which the Secretary finds that the Sec17 retary’s estimates for any prior calendar month were 

18 greater or less than the amounts which should have been 

19 paid to the State. Such estimates may be made on the 

20 basis of such statistical, sampling, or other method as may 

21 be agreed upon by the Secretary and the State agency of 

22 the State involved. 

23 SEC. 344. FINANCING PROVISIONS. 

24 (a) IN GENERAL.—Funds in the extended unemploy25 ment compensation account (as established by section 
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1 905(a) of the Social Security Act (42 U.S.C. 1105(a)) of 

2 the Unemployment Trust Fund (as established by section 

3 904(a) of such Act (42 U.S.C. 1104(a)) shall be used for 

4 the making of payments to States having agreements en5 tered into under this title. 

6 (b) CERTIFICATION.—The Secretary shall from time 

7 to time certify to the Secretary of the Treasury for pay8 ment to each State the sums payable to such State under 

9 this title. The Secretary of the Treasury, prior to audit 

10 or settlement by the Government Accountability Office, 

11 shall make payments to the State in accordance with such 

12 certification, by transfers from the extended unemploy13 ment compensation account (as so established) to the ac14 count of such State in the Unemployment Trust Fund (as 

15 so established). 

16 (c) ASSISTANCE TO STATES.—There are appro17 priated out of the employment security administration ac18 count (as established by section 901(a) of the Social Secu19 rity Act (42 U.S.C. 1101(a)) of the Unemployment Trust 

20 Fund, without fiscal year limitation, such funds as may 

21 be necessary for purposes of assisting States (as provided 

22 in title III of the Social Security Act (42 U.S.C. 501 et 

23 seq.)) in meeting the costs of administration of agree24 ments under this title. 
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1 (d) APPROPRIATIONS FOR CERTAIN PAYMENTS.— 

2 There are appropriated from the general fund of the 

3 Treasury, without fiscal year limitation, to the extended 

4 unemployment compensation account (as so established) 

5 of the Unemployment Trust Fund (as so established) such 

6 sums as the Secretary estimates to be necessary to make 

7 the payments under this section in respect of— 

8 (1) compensation payable under chapter 85 of 

9 title 5, United States Code; and 

10 (2) compensation payable on the basis of serv11 ices to which section 3309(a)(1) of the Internal Rev12 enue Code of 1986 applies. 

13 Amounts appropriated pursuant to the preceding sentence 

14 shall not be required to be repaid. 

15 SEC. 345. FRAUD AND OVERPAYMENTS. 

16 (a) IN GENERAL.—If an individual knowingly has 

17 made, or caused to be made by another, a false statement 

18 or representation of a material fact, or knowingly has 

19 failed, or caused another to fail, to disclose a material fact, 

20 and as a result of such false statement or representation 

21 or of such nondisclosure such individual has received an 

22 amount of temporary extended unemployment compensa23 tion under this title to which he was not entitled, such 

24 individual— 
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1 (1) shall be ineligible for further temporary ex2 tended unemployment compensation under this title 

3 in accordance with the provisions of the applicable 

4 State unemployment compensation law relating to 

5 fraud in connection with a claim for unemployment 

6 compensation; and 

7 (2) shall be subject to prosecution under section 

8 1001 of title 18, United States Code. 

9 (b) REPAYMENT.—In the case of individuals who 

10 have received amounts of temporary extended unemploy11 ment compensation under this title to which they were not 

12 entitled, the State shall require such individuals to repay 

13 the amounts of such temporary extended unemployment 

14 compensation to the State agency, except that the State 

15 agency may waive such repayment if it determines that— 

16 (1) the payment of such temporary extended 

17 unemployment compensation was without fault on 

18 the part of any such individual; and 

19 (2) such repayment would be contrary to equity 

20 and good conscience. 

21 (c) RECOVERY BY STATE AGENCY.— 

22 (1) IN GENERAL.—The State agency may re23 cover the amount to be repaid, or any part thereof, 

24 by deductions from any temporary extended unem25 ployment compensation payable to such individual 
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1 under this title or from any unemployment com2 pensation payable to such individual under any Fed3 eral unemployment compensation law administered 

4 by the State agency or under any other Federal law 

5 administered by the State agency which provides for 

6 the payment of any assistance or allowance with re7 spect to any week of unemployment, during the 3- 

8 year period after the date such individuals received 

9 the payment of the temporary extended unemploy10 ment compensation to which they were not entitled, 

11 except that no single deduction may exceed 50 per12 cent of the weekly benefit amount from which such 

13 deduction is made. 

14 (2) OPPORTUNITY FOR HEARING.—No repay15 ment shall be required, and no deduction shall be 

16 made, until a determination has been made, notice 

17 thereof and an opportunity for a fair hearing has 

18 been given to the individual, and the determination 

19 has become final. 

20 (d) REVIEW.—Any determination by a State agency 

21 under this section shall be subject to review in the same 

22 manner and to the same extent as determinations under 

23 the State unemployment compensation law, and only in 

24 that manner and to that extent. 
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1 SEC. 346. DEFINITIONS. 

2 (a) IN GENERAL.—In this title, the terms ‘‘com3 pensation’’, ‘‘regular compensation’’, ‘‘extended compensa4 tion’’, ‘‘additional compensation’’, ‘‘benefit year’’, ‘‘base 

5 period’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and 

6 ‘‘week’’ have the respective meanings given such terms 

7 under section 205 of the Federal-State Extended Unem8 ployment Compensation Act of 1970 (26 U.S.C. 3304 

9 note). 

10 (b) STATE.—In this title, the term State means Lou11 isiana. 

12 SEC. 347. APPLICABILITY. 

13 An agreement entered into under this title shall apply 

14 to weeks of unemployment— 

15 (1) beginning after August 27, 2005; and 

16 (2) ending before August 27, 2006. 

17 Subtitle F—Special Reed Act 

18 Transfer 

19 SEC. 351. SPECIAL REED ACT TRANSFER. 

20 (a) SPECIAL TRANSFER.—Section 903 of the Social 

21 Security Act (42 U.S.C. 1103) is amended by adding at 

22 the end the following: 

23 ‘‘Special Transfer 

24 ‘‘(e)(1) The Secretary of the Treasury may transfer 

25 (as of the date determined under paragraph (4)) from the 

26 Federal unemployment account to the account of the State 
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•S 1766 IS 

1 in the Unemployment Trust Fund an amount that the 

2 Secretary of the Treasury, in consultation with the Sec3 retary of Labor, determines is appropriate to ensure that 

4 the State account is not insolvent. In no case may the 

5 amount transferred to the State account under the pre6 ceding sentence exceed $500,000. 

7 ‘‘(2)(A) Except as provided in paragraph (3), the 

8 amount transferred to the State account pursuant to this 

9 subsection may be used only in the payment of cash bene10 fits— 

11 ‘‘(i) to individuals with respect to their unem12 ployment; and 

13 ‘‘(ii) which are allowable under subparagraph 

14 (B) or (C). 

15 ‘‘(B)(i) At the option of the State, cash benefits 

16 under this paragraph may include amounts which shall be 

17 payable as— 

18 ‘‘(I) regular compensation; or 

19 ‘‘(II) additional compensation, upon the exhaus20 tion of any temporary extended unemployment com21 pensation (if the State has entered into an agree22 ment under part I of subtitle E of title III of the 

23 Hurricane Katrina Disaster Relief and Economic 

24 Recovery Act of 2005), for individuals eligible for 
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•S 1766 IS 

1 regular compensation under the unemployment com2 pensation law of the State. 

3 ‘‘(ii) Any additional compensation under clause (i) 

4 may not be taken into account for purposes of any deter5 mination relating to the amount of any extended com6 pensation for which an individual might be eligible. 

7 ‘‘(C)(i) At the option of the State, cash benefits 

8 under this paragraph may include amounts which shall be 

9 payable to 1 or more categories of individuals not other10 wise eligible for regular compensation under the unem11 ployment compensation law of the State, including those 

12 described in clause (iii). 

13 ‘‘(ii) The benefits paid under this subparagraph to 

14 any individual may not, for any period of unemployment, 

15 exceed the maximum amount of regular compensation au16 thorized under the unemployment compensation law of the 

17 State for that same period, plus any additional compensa18 tion (described in subparagraph (B)(i)) which could have 

19 been paid with respect to that amount. 

20 ‘‘(iii) The categories of individuals described in this 

21 clause include the following: 

22 ‘‘(I) Individuals who are seeking, or available 

23 for, only part-time (and not full-time) work. 

24 ‘‘(II) Individuals who would be eligible for reg25 ular compensation under the unemployment com-
175 

•S 1766 IS 

1 pensation law of such State under an alternative 

2 base period. 

3 ‘‘(D) Amounts transferred to a State account under 

4 this subsection may be used in the payment of cash bene5 fits to individuals only for weeks of unemployment begin6 ning after the date of enactment of this subsection. 

7 ‘‘(3) Amounts transferred to a State account under 

8 this subsection may be used for the administration of its 

9 unemployment compensation law and public employment 

10 offices (including in connection with benefits described in 

11 paragraph (2) and any recipients thereof), subject to the 

12 same conditions as set forth in subsection (c)(2) (exclud13 ing subparagraph (B) thereof, and deeming the reference 

14 to ‘subsections (a) and (b)’ in subparagraph (D) thereof 

15 to include this subsection). 

16 ‘‘(4) Transfers under this subsection shall be made 

17 within 90 days after the date of enactment of this para18 graph. 

19 ‘‘(5) STATE.—In this subsection, the term ‘State’ 

20 means Louisiana.’’. 

21 (b) LIMITATIONS ON TRANSFERS.—Subsection (b) of 

22 section 903(b) of the Social Security Act (42 U.S.C. 1103) 

23 shall apply to transfers under subsection (e) of such sec24 tion (as added by subsection (a)). For purposes of the pre-
176 

•S 1766 IS 

1 ceding sentence, such subsection (b) shall be deemed to 

2 be amended as follows: 

3 (1) By substituting ‘‘the transfer date described 

4 in subsection (e)(4)’’ for ‘‘October 1 of any fiscal 

5 year’’. 

6 (2) By substituting ‘‘remain in the Federal un7 employment account’’ for ‘‘be transferred to the 

8 Federal unemployment account as of the beginning 

9 of such October 1’’. 

10 (3) By substituting ‘‘fiscal year 2006 (after the 

11 transfer date described in subsection (e)(4))’’ for 

12 ‘‘the fiscal year beginning on such October 1’’. 

13 (4) By substituting ‘‘under subsection (e)’’ for 

14 ‘‘as of October 1 of such fiscal year’’. 

15 (5) By substituting ‘‘(as of the close of fiscal 

16 year 2006)’’ for ‘‘(as of the close of such fiscal 

17 year)’’. 

18 (c) TECHNICAL AMENDMENTS.—(1) Sections 

19 3304(a)(4)(B) and 3306(f)(2) of the Internal Revenue 

20 Code of 1986 are amended by striking ‘‘or 903(d)(4)’’ and 

21 inserting ‘‘, 903(d)(4), or 903(e)(3)’’. 

22 (2) Section 303(a)(5) of the Social Security Act (42 

23 U.S.C. 503(a)(5)) is amended in the second proviso by 

24 striking ‘‘or 903(d)(4)’’ and inserting ‘‘, 903(d)(4), or 

25 903(e)(3)’’. 
177 

•S 1766 IS 

1 (d) REGULATIONS.—The Secretary of Labor may 

2 prescribe any operating instructions or regulations nec3 essary to carry out this section and the amendments made 

4 by this section. 

5 TITLE IV—PUBLIC RELIEF, 

6 SMALL BUSINESS, AND AGRI7 CULTURE RECOVERY 

8 Subtitle A—Education Assistance 

9 SEC. 401. FEDERAL WORK STUDY. 

10 (a) WAIVER OF 7 PERCENT REQUIREMENT.—In ad11 ministering the Federal work-study program under part 

12 C of title IV of the Higher Education Act of 1965 (42 

13 U.S.C. 2751 et seq.), the Secretary of Education shall 

14 waive the requirement of section 443(b)(2)(B) of such Act 

15 (42 U.S.C. 2753) for fiscal year 2005 for an institution 

16 of higher education described in subsection (b), including 

17 waiving any penalty or reduction in funds associated with 

18 such section for such institution for academic years 2005– 

19 2006 and 2006–2007. 

20 (b) INSTITUTION OF HIGHER EDUCATION.—An insti21 tution of higher education described in this subsection is 

22 an institution of higher education, as defined in sections 

23 101 and 102 of the Higher Education Act of 1965 (20 

24 U.S.C. 1001, 1002), that— 
178 

•S 1766 IS 

1 (1) is located in an area in which an emergency 

2 or major disaster was declared under section 401 of 

3 the Robert T. Stafford Disaster Relief and Emer4 gency Assistance Act (42 U.S.C. 5170) due to the 

5 effects of Hurricane Katrina; 

6 (2) entered into an agreement with the Sec7 retary under part C of title IV of such Act (42 

8 U.S.C. 2751 et seq.) for fiscal year 2005; and 

9 (3) failed to expend the required 7 percent of 

10 funds under section 443(b)(2)(B) of such Act (42 

11 U.S.C. 2753(b)(2)(B)) by August 29, 2005. 

12 SEC. 402. ELIGIBILITY OF HOSPITALS FOR ASSISTANCE. 

13 Title III of the Robert T. Stafford Disaster Relief 

14 and Emergency Assistance Act (42 U.S.C. 5141 et seq.) 

15 is amended by adding at the end the following: 

16 ‘‘SEC. 326. ELIGIBILITY OF HOSPITALS FOR ASSISTANCE. 

17 Notwithstanding any other provision of law, for any 

18 major disaster declared under section 401 on or after Au19 gust 1, 2005, the eligibility of a hospital to receive assist20 ance under this Act shall be determined without regard 

21 to whether the hospital is a private nonprofit facility.’’. 

22 SEC. 403. ASSISTANCE FOR STUDENTS AFFECTED BY HUR23 RICANE KATRINA. 

24 (a) DEFERMENT OF LOANS UNDER TITLE IV.—An 

25 affected student who was enrolled in an institution of 
179 

•S 1766 IS 

1 higher education on August 29, 2005, and whose attend2 ance at such institution was interrupted because of the 

3 impact of Hurricane Katrina on the student or on the in4 stitution, shall be placed in deferment status with respect 

5 to loans made, insured, or guaranteed under title IV of 

6 the Higher Education Act of 1965 (20 U.S.C. 1070 et 

7 seq.) for such student for the period beginning on August 

8 29, 2005, and ending on the date such student enrolls in 

9 an institution of higher education on not less than a half10 time basis or the date that is 180 days after August 29, 

11 2005, whichever date is earlier. 

12 (b) RECALCULATION OF THE EXPECTED FAMILY

13 CONTRIBUTION.—Notwithstanding part F of title IV of 

14 the Higher Education Act of 1965 (20 U.S.C. 1087kk et 

15 seq.), for the 2005–2006 and 2006–2007 award years, the 

16 Secretary of Education shall calculate the amount of need 

17 of an affected student for financial assistance under title 

18 IV of such Act as if such student had an expected family 

19 contribution equal to zero. 

20 (c) AFFECTED STUDENT.—In this section, the term 

21 ‘‘affected student’’ means a student who was residing in, 

22 employed in, or attending an institution of higher edu23 cation that is located in, an area in which the President 

24 has declared that a major disaster exists, in accordance 

25 with section 401 of the Robert T. Stafford Disaster Relief 
180 

•S 1766 IS 

1 and Emergency Assistance Act (42 U.S.C. 5170) due to 

2 the effects of Hurricane Katrina. 

3 Subtitle B—Small Business 

4 Recovery 

5 SEC. 411. DISASTER LOANS. 

6 Section 7(b) of the Small Business Act (15 U.S.C. 

7 636(b)) is amended by inserting immediately after para8 graph (3) the following: 

9 ‘‘(4) DISASTER LOANS AFTER HURRICANE

10 KATRINA.— 

11 ‘‘(A) ADDITIONAL LOAN AUTHORITY.— 

12 ‘‘(i) LOANS TO SMALL BUSINESSES.— 

13 In addition to any other loan authorized by 

14 this subsection, the Administrator may 

15 make such loans under this subsection (ei16 ther directly or in cooperation with banks 

17 or other lending institutions through agree18 ments to participate on an immediate or 

19 deferred basis) as the Administrator deter20 mines appropriate to a small business con21 cern or small agricultural cooperative that 

22 demonstrates a direct adverse economic 

23 impact caused by Hurricane Katrina, 

24 based on such criteria as the Adminis-
181 

•S 1766 IS 

1 trator may set by rule, regulation, or 

2 order. 

3 ‘‘(ii) LOANS TO NONPROFITS.—In ad4 dition to any other loan authorized by this 

5 subsection, the Administrator may make 

6 such loans under this subsection (either di7 rectly or in cooperation with banks or 

8 other lending institutions through agree9 ments to participate on an immediate or 

10 deferred basis) as the Administrator deter11 mines appropriate to a non-profit organiza12 tion for purposes of repairing damage 

13 caused by Hurricane Katrina or per14 forming other hurricane relief services in a 

15 damaged area. 

16 ‘‘(B) INCREASED LOAN CAPS.— 

17 ‘‘(i) AGGREGATE LOAN AMOUNTS.— 

18 Except as provided in clause (ii), the ag19 gregate loan amount outstanding and com20 mitted to a qualified borrower under this 

21 paragraph may not exceed $10,000,000. 

22 ‘‘(ii) WAIVER AUTHORITY.—The Ad23 ministrator may, at the discretion of the 

24 Administrator, waive the aggregate loan 

25 amount established under clause (i). 
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•S 1766 IS 

1 ‘‘(C) DEFERMENT OF DISASTER LOAN PAY2 MENTS.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 any other provision of law, payments of 

5 principal and interest on a loan to a quali6 fied borrower made under this subsection 

7 before, on, or after the date of enactment 

8 of this paragraph shall be deferred, and no 

9 interest shall accrue with respect to such 

10 loan, during the time period described in 

11 clause (ii). 

12 ‘‘(ii) TIME PERIOD.—The time period 

13 for purposes of clause (i) shall be 1 year 

14 from the later of the date of enactment of 

15 this paragraph or the date of issuance of 

16 a loan described in clause (i), but may be 

17 extended to 2 years from such date, at the 

18 discretion of the Administrator. 

19 ‘‘(iii) RESUMPTION OF PAYMENTS.— 

20 At the end of the time period described in 

21 clause (ii), the payment of periodic install22 ments of principal and interest shall be re23 quired with respect to such loan, in the 

24 same manner and subject to the same 

25 terms and conditions as would otherwise be 
183 

•S 1766 IS 

1 applicable to any other loan made under 

2 this subsection. 

3 ‘‘(D) DEFINITIONS.—In this paragraph, 

4 the following definitions shall apply: 

5 ‘‘(i) DAMAGED AREA.—The term 

6 ‘damaged area’ means an area which the 

7 President has designated as a disaster area 

8 as a result of Hurricane Katrina of August 

9 2005. 

10 ‘‘(ii) QUALIFIED BORROWER.—The 

11 term ‘qualified borrower’ means a small 

12 business concern or non-profit organiza13 tion— 

14 ‘‘(I) located in a damaged area; 

15 or 

16 ‘‘(II) located in a State contig17 uous to a damaged area that is using, 

18 or intends to use, a loan made under 

19 this subsection for purposes of re20 building or conducting operations in a 

21 damaged area.’’. 

22 SEC. 412. DEVELOPMENT COMPANY DEBENTURES. 

23 Section 503 of the Small Business Investment Act 

24 of 1958 (15 U.S.C. 697) is amended by adding at the end 

25 the following: 
184 

•S 1766 IS 

1 ‘‘(j) DEBENTURES AFTER HURRICANE KATRINA.— 

2 ‘‘(1) AUTHORITY.— 

3 ‘‘(A) IN GENERAL.—In addition to any 

4 other guarantee authorized by this section, the 

5 Administrator may guarantee the timely pay6 ment of all principal and interest as scheduled 

7 on any debenture issued to a qualified borrower 

8 for purposes of rebuilding or resuming oper9 ations in a damaged area, as the Administrator 

10 determines appropriate. 

11 ‘‘(B) TERMS.—The Administrator shall es12 tablish a fee for a guarantee issued under sub13 paragraph (A) that is lower than that for other 

14 guarantees under this section. 

15 ‘‘(2) EXISTING GUARANTEES.— 

16 ‘‘(A) IN GENERAL.—Notwithstanding any 

17 other provision of law, the Administrator may 

18 temporarily defer payments of principal and in19 terest on a guarantee made to a qualified bor20 rower under this section before the date of en21 actment of this subsection to a small business 

22 concern in a damaged area, in any case in 

23 which the payments are owed to the Adminis24 tration. 
185 

•S 1766 IS 

1 ‘‘(B) PAYMENTS TO OTHER PARTIES.— 

2 Notwithstanding any other provision of law, the 

3 Administrator may temporarily make payments 

4 of principal and interest on a loan made under 

5 this section before the date of enactment of this 

6 subsection to a qualified borrower, in any case 

7 in which the payments are owed to a person 

8 other than the Administration. 

9 ‘‘(C) TERMINATION OF AUTHORITY.—The 

10 authority to defer, or make, payments under 

11 this paragraph shall terminate 1 year after the 

12 date of enactment of this subsection. 

13 ‘‘(3) DEFINITIONS.—In this subsection, the fol14 lowing definitions shall apply: 

15 ‘‘(A) DAMAGED AREA.—The term ‘dam16 aged area’ means an area which the President 

17 has designated as a disaster area as a result of 

18 Hurricane Katrina of August 2005. 

19 ‘‘(B) QUALIFIED BORROWER.—The term 

20 ‘qualified borrower’ means a small business con21 cern— 

22 ‘‘(i) located in a damaged area; or 

23 ‘‘(ii) that demonstrates a direct ad24 verse economic impact caused by Hurri25 cane Katrina, based on such criteria as the 
186 

•S 1766 IS 

1 Administrator may set by rule, regulation, 

2 or order.’’. 

3 SEC. 413. SMALL BUSINESS EMERGENCY RELIEF. 

4 (a) DEFINITIONS.—As used in this subtitle— 

5 (1) the term ‘‘small business concern’’ has the 

6 same meaning as in section 3 of the Small Business 

7 Act; and 

8 (2) the terms ‘‘Administration’’ and ‘‘Adminis9 trator’’ mean the Small Business Administration 

10 and the Administrator thereof, respectively. 

11 (b) BUSINESS LOAN PROGRAMS.—Section 

12 20(e)(1)(B) of the Small Business Act (15 U.S.C. 631 

13 note) is amended— 

14 (1) by striking ‘‘$25,050,000,000’’ and insert15 ing ‘‘$30,550,000,000’’; 

16 (2) in clause (i), by striking ‘‘$17,000,000,000’’ 

17 and inserting ‘‘$20,000,000,000’’; and 

18 (3) in clause (ii), by striking ‘‘$7,500,000,000’’ 

19 and inserting ‘‘$10,000,000,000’’. 

20 (c) APPROPRIATION.— 

21 (1) IN GENERAL.—There is authorized to be 

22 appropriated, and there is appropriated, to the De23 partment of Commerce $150,000,000 to provide, 

24 through the Louisiana Department of Economic De25 velopment, bridge grants and loans to small business 
187 

•S 1766 IS 

1 concerns located in the area which the President has 

2 designated as a disaster area as a result of Hurri3 cane Katrina, to assist in covering costs of such con4 cerns until they are able to obtain loans through Ad5 ministration assistance programs or other sources. 

6 (2) TERMS.—For a loan made with funds ap7 propriated under paragraph (1)— 

8 (A) such a loan shall initially be a 

9 noncollateralized, low-interest loan; 

10 (B) the first payment on such a loan shall 

11 be deferred for at least 1 year after the date on 

12 which the loan is made; 

13 (C) the balance remaining on such a loan 

14 5 years after the date on which the loan is 

15 made shall be forgiven entirely by the Louisiana 

16 Department of Economic Development if the 

17 borrower has continued to operate in the area 

18 which the President has designated as a dis19 aster area as a result of Hurricane Katrina 

20 during that 5-year period; and 

21 (D) such a loan may be forgiven by the 

22 Louisiana Department of Economic Develop23 ment, under such terms as it may set, if the 

24 borrower cannot repay such loan. 
188 

•S 1766 IS 

1 (d) DISASTER LOAN ADDITIONAL AMOUNTS.—In ad2 dition to any other amounts otherwise appropriated for 

3 such purpose, there is authorized to be appropriated, and 

4 there is appropriated, to the Administration $86,000,000, 

5 to make loans under section 7(b) of the Small Business 

6 Act. 

7 (e) OTHER DISASTER LOANS FOLLOWING HURRI8 CANE KATRINA.— 

9 (1) IN GENERAL.—Paragraph (4) of section 

10 7(b) of the Small Business Act (15 U.S.C. 636(b)), 

11 as added by this subtitle, is amended by adding at 

12 the end the following: 

13 ‘‘(E) REFINANCING DISASTER LOANS

14 AFTER HURRICANE KATRINA.— 

15 ‘‘(i) IN GENERAL.—Any loan made 

16 under this subsection that was outstanding 

17 as to principal or interest on August 24, 

18 2005, may be refinanced by a small busi19 ness concern that is located in an area des20 ignated by the President as a disaster area 

21 as a result of Hurricane Katrina of 2005 

22 (in this paragraph referred to as the ‘dis23 aster area’), and the refinanced amount 

24 shall be considered to be part of the new 

25 loan for purposes of this subparagraph. 
189 

•S 1766 IS 

1 ‘‘(ii) NO EFFECT ON ELIGIBILITY.—A 

2 refinancing under clause (i) by a small 

3 business concern shall be in addition to 

4 any other loan eligibility for that small 

5 business concern under this Act. 

6 ‘‘(F) REFINANCING BUSINESS DEBT.— 

7 ‘‘(i) IN GENERAL.—Any business debt 

8 of a small business concern that was out9 standing as to principal or interest on Au10 gust 24, 2005, may be refinanced by the 

11 small business concern if it is, or was on 

12 that date, located in the disaster area. 

13 With respect to a refinancing under this 

14 clause, payments of principal shall be de15 ferred, and interest may accrue, during the 

16 1-year period following the date of refi17 nancing, and the refinanced amount shall 

18 be considered to be part of a new loan for 

19 purposes of this subparagraph. 

20 ‘‘(ii) RESUMPTION OF PAYMENTS.—At 

21 the end of the 1-year period described in 

22 clause (i), the payment of periodic install23 ments of principal and interest shall be re24 quired with respect to such loan, in the 

25 same manner and subject to the same 
190 

•S 1766 IS 

1 terms and conditions as would otherwise be 

2 applicable to any other loan made under 

3 this subsection. 

4 ‘‘(G) TERMS.—A loan under subparagraph 

5 (E) or (F) shall be made at the same interest 

6 rate as economic injury loans under paragraph 

7 (2). 

8 ‘‘(H) EXTENDED APPLICATION PERIOD.— 

9 Notwithstanding any other provision of law, the 

10 Administrator shall accept applications for as11 sistance under paragraphs (1) and (4) until 1 

12 year after the date on which the President des13 ignated the area as a disaster area as a result 

14 of Hurricane Katrina. 

15 ‘‘(I) NO SALE.—No loan under this sub16 section made as a result of Hurricane Katrina 

17 may be sold.’’. 

18 (2) CLERICAL AMENDMENTS.—Section 7(b) of 

19 the Small Business Act (15 U.S.C. 636(b)) is 

20 amended in the undesignated matter at the end— 

21 (A) by striking ‘‘, (2), and (4)’’ and insert22 ing ‘‘and (2)’’; and 

23 (B) by striking ‘‘, (2), or (4)’’ and insert24 ing ‘‘(2)’’. 
191 

•S 1766 IS 

1 SEC. 414. ENTREPRENEURIAL DEVELOPMENT. 

2 In addition to any other amounts authorized for any 

3 fiscal year, there is authorized to be appropriated, and 

4 there is appropriated, to the Administration, to remain 

5 available until expended— 

6 (1) $21,000,000, to be used for activities of 

7 small business development centers pursuant to sec8 tion 21 of the Small Business Act, $15,000,000 of 

9 which shall be non-matching funds and used to aid 

10 and assist small business concerns affected by Hur11 ricane Katrina; 

12 (2) $2,000,000, to be used for the SCORE pro13 gram authorized by section 8(b)(1) of the Small 

14 Business Act, for the activities described in section 

15 8(b)(1)(B)(ii) of that Act, $1,000,000 of which shall 

16 be used to aid and assist small business concerns af17 fected by Hurricane Katrina; 

18 (3) $4,500,000, to be used for activities of 

19 women’s business centers authorized by section 

20 29(b) of the Small Business Act and for recipients 

21 of a grant under section 29(l) of that Act, 

22 $2,500,000 of which shall be non-matching funds 

23 used to aid and assist small business concerns af24 fected by Hurricane Katrina, which may also be 

25 made available to a women’s business center whose 

26 5-year project ended in fiscal year 2004; 
192 

•S 1766 IS 

1 (4) $1,250,000, to be used for activities of the 

2 office of veteran’s business development pursuant to 

3 section 32 of the Small Business Act, $750,000 of 

4 which shall be used to aid and assist small business 

5 concerns affected by Hurricane Katrina; and 

6 (5) $5,000,000, to be used for activities of the 

7 microloan program authorized by clauses (ii) and 

8 (iii) of section 7(m)(1)(G) of the Small Business Act 

9 to aid and assist small business concerns adversely 

10 affected by Hurricane Katrina. 

11 SEC. 415. SMALL BUSINESS DEVELOPMENT CENTERS. 

12 Section 21(a)(4) of the Small Business Act (15 

13 U.S.C. 648(a)(4)) is amended by adding at the end the 

14 following: 

15 ‘‘(D) FISCAL YEARS 2005 AND 2006.—For 

16 fiscal years 2005 and 2006, the Administrator 

17 has the authority to waive the maximum 

18 amount of $100,000 for grants under subpara19 graph (C)(viii) for small business development 

20 centers assisting small business concerns ad21 versely affected by Hurricane Katrina.’’. 

22 SEC. 416. HUBZONES. 

23 Section 3(p)(1) of the Small Business Act (15 U.S.C. 

24 632(p)(1)) is amended— 

25 (1) in subparagraph (D), by striking ‘‘or’’; 
193 

•S 1766 IS 

1 (2) in subparagraph (E), by striking the period 

2 and inserting ‘‘; or’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(F) the Hurricane Katrina disaster area, 

5 as designated by the Administrator.’’. 

6 SEC. 417. OUTREACH PROGRAMS. 

7 (a) IN GENERAL.—Not later than 90 days after the 

8 date of enactment of this Act, the Administrator shall es9 tablish a contracting outreach and technical assistance 

10 program for small business concerns which have had a pri11 mary place of business in, or other significant presence 

12 in the Hurricane Katrina disaster area at any time fol13 lowing the 60 days prior to the designation of such area 

14 by the Administrator. 

15 (b) ADMINISTRATOR ACTION.—The Administrator 

16 may fulfill the requirement of subsection (a) by acting 

17 through— 

18 (1) the Administration; 

19 (2) the Federal agency small business officials 

20 designated under section 15(k)(1) of the Small Busi21 ness Act (15 U.S.C. 644(k)(1)); or 

22 (3) any Federal, State, or local government en23 tity, higher education institution, or private non24 profit organization that the Administrator may deem 

25 appropriate, upon conclusion of a memorandum of 
194 

•S 1766 IS 

1 understanding or assistance agreement, as appro2 priate, with the Administrator. 

3 SEC. 418. SMALL BUSINESS BONDING THRESHOLD. 

4 Notwithstanding any other provision of law, for all 

5 procurements related to Hurricane Katrina, the Adminis6 trator may, upon such terms and conditions as it may pre7 scribe, guarantee and enter into commitments to guar8 antee any surety against loss resulting from a breach of 

9 the terms of a bid bond, payment bond, performance bond, 

10 or bonds ancillary thereto, by a principal on any total work 

11 order or contract amount at the time of bond execution 

12 that does not exceed $10,000,000. 

13 SEC. 419. SUPPLEMENTAL EMERGENCY LOANS. 

14 (a) IN GENERAL.—Section 7(a) of the Small Busi15 ness Act (15 U.S.C. 636(a)) is amended by adding at the 

16 end the following: 

17 ‘‘(32) SUPPLEMENTAL EMERGENCY LOANS

18 AFTER HURRICANE KATRINA.— 

19 ‘‘(A) LOAN AUTHORITY.—In addition to 

20 any other loan authorized by this subsection, 

21 the Administrator shall make such loans under 

22 this subsection (either directly or in cooperation 

23 with banks or other lending institutions through 

24 agreements to participate on an immediate or 

25 deferred basis) as the Administrator determines 
195 

•S 1766 IS 

1 appropriate to a small business concern ad2 versely affected by Hurricane Katrina, subject 

3 to subparagraph (B). 

4 ‘‘(B) OVERSIGHT PROTECTIONS.—In mak5 ing any loan under subparagraph (A)— 

6 ‘‘(i) the borrower shall be made aware 

7 that such loans are for those adversely af8 fected by Hurricane Katrina; and 

9 ‘‘(ii) if such loans are made in co10 operation with a bank or other lending in11 stitution— 

12 ‘‘(I) lenders shall document for 

13 the Administrator how the borrower 

14 was adversely affected by Hurricane 

15 Katrina, whether directly, or indi16 rectly; and 

17 ‘‘(II) not later than 6 months 

18 after the date of enactment of this 

19 paragraph, and every 6 months there20 after until the date that is 18 months 

21 after the date of enactment of this 

22 paragraph, the Comptroller General 

23 shall make a report regarding such 

24 loans to the Committee on Small 

25 Business and Entrepreneurship of the 
196 

•S 1766 IS 

1 Senate and the Committee on Small 

2 Business of the House of Representa3 tives, including verification that such 

4 loans are being used for purposes au5 thorized by this paragraph. 

6 ‘‘(C) FEES.— 

7 ‘‘(i) IN GENERAL.—Notwithstanding 

8 any other provision of law, the Adminis9 trator shall, in lieu of the fee established 

10 under paragraph (23)(A), collect an annual 

11 fee of 0.25 percent of the outstanding bal12 ance of deferred participation loans made 

13 under this subsection to qualified bor14 rowers for a period of 1 year after the date 

15 of enactment of this paragraph. 

16 ‘‘(ii) GUARANTEE FEES.—Notwith17 standing any other provision of law, the 

18 guarantee fee under paragraph (18)(A) for 

19 a period of 1 year after the date of enact20 ment of this subparagraph shall be as fol21 lows: 

22 ‘‘(I) A guarantee fee equal to 1 

23 percent of the deferred participation 

24 share of a total loan amount that is 

25 not more than $150,000. 
197 

•S 1766 IS 

1 ‘‘(II) A guarantee fee equal to 

2 2.5 percent of the deferred participa3 tion share of a total loan amount that 

4 is more than $150,000, but not more 

5 than $700,000. 

6 ‘‘(III) A guarantee fee equal to 

7 3.5 percent of the deferred participa8 tion share of a total loan amount that 

9 is more than $700,000.’’. 

10 (b) APPROPRIATION.—There is authorized to be ap11 propriated, and there is appropriated, $75,000,000 to 

12 carry out section 7(a)(32) of the Small Business Act, as 

13 amended by subsection (a). 

14 SEC. 420. SMALL BUSINESS PARTICIPATION. 

15 In order to facilitate the maximum practicable par16 ticipation of small business concerns in activities related 

17 to relief and recovery from Hurricane Katrina, the Admin18 istrator and the head of any Federal agency making pro19 curements related to the aftermath of Hurricane Katrina, 

20 shall set a goal, to be met within a reasonable time, of 

21 awarding to small business concerns not less than 30 per22 cent of amounts expended for prime contracts and not less 

23 than 40 percent of amounts expended for subcontracts on 

24 procurements by such agency related to the aftermath of 

25 Hurricane Katrina. 
198 

•S 1766 IS 

1 SEC. 421. ENERGY EMERGENCY RELIEF. 

2 (a) SMALL BUSINESS AND FARM ENERGY EMER3 GENCY DISASTER LOAN PROGRAM.— 

4 (1) SMALL BUSINESS DISASTER LOAN AUTHOR5 ITY.—Section 7(b) of the Small Business Act (15 

6 U.S.C. 636(b)) is amended by inserting immediately 

7 after paragraph (4), as added by this subtitle, the 

8 following: 

9 ‘‘(5)(A) For purposes of this paragraph— 

10 ‘‘(i) the term ‘base price index’ means the 

11 moving average of the closing unit price on the 

12 New York Mercantile Exchange for heating oil, 

13 natural gas, gasoline, or propane for the 10 

14 days, in each of the most recent 2 preceding 

15 years, which correspond to the trading days de16 scribed in clause (ii); 

17 ‘‘(ii) the term ‘current price index’ means 

18 the moving average of the closing unit price on 

19 the New York Mercantile Exchange, for the 10 

20 most recent trading days, for contracts to pur21 chase heating oil, natural gas, gasoline, or pro22 pane during the subsequent calendar month, 

23 commonly known as the ‘front month’; 

24 ‘‘(iii) the term ‘significant increase’ 

25 means— 
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1 ‘‘(I) with respect to the price of heat2 ing oil, natural gas, gasoline, or propane, 

3 any time the current price index exceeds 

4 the base price index by not less than 40 

5 percent; and 

6 ‘‘(II) with respect to the price of ker7 osene, any increase which the Adminis8 trator, in consultation with the Secretary 

9 of Energy, determines to be significant; 

10 and 

11 ‘‘(iv) a small business concern engaged in 

12 the heating oil business is eligible for a loan, if 

13 the small business concern sells not more than 

14 10,000,000 gallons of heating oil per year. 

15 ‘‘(B) The Administration may make such loans, 

16 either directly or in cooperation with banks or other 

17 lending institutions through agreements to partici18 pate on an immediate or deferred basis, to assist a 

19 small business concern that has suffered or that is 

20 likely to suffer substantial economic injury on or 

21 after January 1, 2005, as the result of a significant 

22 increase in the price of heating oil, natural gas, gas23 oline, propane, or kerosene occurring on or after 

24 January 1, 2005. 
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1 ‘‘(C) Any loan or guarantee extended pursuant 

2 to this paragraph shall be made at the same interest 

3 rate as economic injury loans under paragraph (2). 

4 ‘‘(D) No loan may be made under this para5 graph, either directly or in cooperation with banks 

6 or other lending institutions through agreements to 

7 participate on an immediate or deferred basis, if the 

8 total amount outstanding and committed to the bor9 rower under this subsection would exceed 

10 $1,500,000, unless such borrower constitutes a 

11 major source of employment in its surrounding area, 

12 as determined by the Administrator, in which case 

13 the Administrator, in its discretion, may waive the 

14 $1,500,000 limitation. 

15 ‘‘(E) For purposes of assistance under this 

16 paragraph— 

17 ‘‘(i) a declaration of a disaster area based 

18 on conditions specified in this paragraph shall 

19 be required, and shall be made by the President 

20 or the Administrator; or 

21 ‘‘(ii) if no declaration has been made pur22 suant to clause (i), the Governor of a State in 

23 which a significant increase in the price of heat24 ing oil, natural gas, gasoline, propane, or ker25 osene has occurred may certify to the Adminis-
201 

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1 tration that small business concerns have suf2 fered economic injury as a result of such in3 crease and are in need of financial assistance 

4 which is not otherwise available on reasonable 

5 terms in that State, and upon receipt of such 

6 certification, the Administration may make such 

7 loans as would have been available under this 

8 paragraph if a disaster declaration had been 

9 issued. 

10 ‘‘(F) Notwithstanding any other provision of 

11 law, loans made under this paragraph may be used 

12 by a small business concern described in subpara13 graph (B) to convert from the use of heating oil, 

14 natural gas, gasoline, propane, or kerosene to a re15 newable or alternative energy source, including agri16 culture and urban waste, geothermal energy, cogen17 eration, solar energy, wind energy, or fuel cells.’’. 

18 (2) CONFORMING AMENDMENTS.—Section 3(k) 

19 of the Small Business Act (15 U.S.C. 632(k)) is 

20 amended— 

21 (A) by inserting ‘‘, significant increase in 

22 the price of heating oil, natural gas, gasoline, 

23 propane, or kerosene’’ after ‘‘civil disorders’’; 

24 and 
202 

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1 (B) by inserting ‘‘other’’ before ‘‘eco2 nomic’’. 

3 (3) REPORT.—Not later than 12 months after 

4 the date on which the Administrator issues guide5 lines under subsection (c)(1), and annually there6 after, the Administrator shall submit to the Com7 mittee on Small Business and Entrepreneurship of 

8 the Senate and the Committee on Small Business of 

9 the House of Representatives, a report on the effec10 tiveness of the assistance made available under sec11 tion 7(b)(5) of the Small Business Act, as added by 

12 this subsection, including— 

13 (A) the number of small business concerns 

14 that applied for a loan under that section 

15 7(b)(5) and the number of those that received 

16 such loans; 

17 (B) the dollar value of those loans; 

18 (C) the States in which the small business 

19 concerns that received such loans are located; 

20 (D) the type of energy that caused the sig21 nificant increase in the cost for the partici22 pating small business concerns; and 

23 (E) recommendations for ways to improve 

24 the assistance provided under that section 

25 7(b)(5), if any. 
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1 (4) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply during the 4-year pe3 riod beginning on the earlier of the date on which 

4 guidelines are published by the Administrator under 

5 subsection (c)(1), or 30 days after the date of enact6 ment of this Act, with respect to assistance under 

7 section 7(b)(5) of the Small Business Act, as added 

8 by this subsection. 

9 (b) FARM ENERGY EMERGENCY RELIEF.— 

10 (1) IN GENERAL.—Section 321(a) of the Con11 solidated Farm and Rural Development Act (7 

12 U.S.C. 1961(a)) is amended— 

13 (A) in the first sentence— 

14 (i) by striking ‘‘operations have’’ and 

15 inserting ‘‘operations (i) have’’; and 

16 (ii) by inserting before ‘‘: Provided,’’ 

17 the following: ‘‘, or (ii)(I) are owned or op18 erated by such an applicant that is also a 

19 small business concern (as defined in sec20 tion 3 of the Small Business Act (15 

21 U.S.C. 632)), and (II) have suffered or are 

22 likely to suffer substantial economic injury 

23 on or after January 1, 2005, as the result 

24 of a significant increase in energy costs or 

25 input costs from energy sources occurring 
204 

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1 on or after January 1, 2005, in connection 

2 with an energy emergency declared by the 

3 President or the Secretary’’; 

4 (B) in the third sentence, by inserting be5 fore the period at the end the following: ‘‘or by 

6 an energy emergency declared by the President 

7 or the Secretary’’; and 

8 (C) in the fourth sentence— 

9 (i) by inserting ‘‘or energy emer10 gency’’ after ‘‘natural disaster’’ each place 

11 that term appears; and 

12 (ii) by inserting ‘‘or declaration’’ after 

13 ‘‘emergency designation’’. 

14 (2) FUNDING.—Funds available on the date of 

15 enactment of this Act for emergency loans under 

16 subtitle C of the Consolidated Farm and Rural De17 velopment Act (7 U.S.C. 1961 et seq.) shall be avail18 able to carry out the amendments made by para19 graph (1) to meet the needs resulting from natural 

20 disasters. 

21 (3) REPORT.—Not later than 12 months after 

22 the date on which the Secretary of Agriculture 

23 issues guidelines under subsection (c)(1), and annu24 ally thereafter, the Secretary shall submit to the 

25 Committee on Small Business and Entrepreneurship 
205 

•S 1766 IS 

1 and the Committee on Agriculture, Nutrition, and 

2 Forestry of the Senate and to the Committee on 

3 Small Business and the Committee on Agriculture of 

4 the House of Representatives, a report that— 

5 (A) describes the effectiveness of the as6 sistance made available under section 321(a) of 

7 the Consolidated Farm and Rural Development 

8 Act (7 U.S.C. 1961(a)), as amended by this 

9 subsection; and 

10 (B) contains recommendations for ways to 

11 improve the assistance provided under such sec12 tion 321(a). 

13 (4) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply during the 4-year pe15 riod beginning on the earlier of the date on which 

16 guidelines are published by the Secretary of Agri17 culture under subsection (c)(1), or 30 days after the 

18 date of enactment of this Act, with respect to assist19 ance under section 321(a) of the Consolidated Farm 

20 and Rural Development Act (7 U.S.C. 1961(a)), as 

21 amended by this subsection. 

22 (c) GUIDELINES AND RULEMAKING.— 

23 (1) GUIDELINES.—Not later than 30 days after 

24 the date of enactment of this Act, the Administrator 

25 and the Secretary of Agriculture shall each issue 
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1 guidelines to carry out subsections (a) and (b), re2 spectively, and the amendments made thereby, which 

3 guidelines shall become effective on the date of their 

4 issuance. 

5 (2) RULEMAKING.—Not later than 30 days 

6 after the date of enactment of this Act, the Adminis7 trator, after consultation with the Secretary of En8 ergy, shall promulgate regulations specifying the 

9 method for determining a significant increase in the 

10 price of kerosene under section 7(b)(5)(A)(iii)(II) of 

11 the Small Business Act, as added by this section. 

12 SEC. 422. BUDGETARY TREATMENT OF LOANS AND 

13 FINANCINGS. 

14 (a) IN GENERAL.—Assistance made available under 

15 any loan made or approved by the Administration under 

16 this subtitle, subsections (a) or (b) of section 7 of the 

17 Small Business Act (15 U.S.C. 636(a)), as amended by 

18 this subtitle, except for subsection 7(a)(23)(C), or 

19 financings made under title V of the Small Business In20 vestment Act of 1958 (15 U.S.C. 695 et seq.), as amended 

21 by this subtitle, on and after the date of enactment of this 

22 Act, shall be treated as separate programs of the Adminis23 tration for purposes of the Federal Credit Reform Act of 

24 1990 only. 
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1 (b) USE OF FUNDS.—Assistance under this subtitle 

2 and the amendments made by this subtitle shall be avail3 able only to the extent that funds are made available 

4 under appropriations Acts, which funds shall be utilized 

5 to offset the cost (as such term is defined in section 502 

6 of the Federal Credit Reform Act of 1990) of such assist7 ance. 

8 SEC. 423. EMERGENCY SPENDING. 

9 Appropriations under this subtitle are designated as 

10 emergency spending, as provided under section 402 of H. 

11 Con. Res. 95 (109th Congress). 

12 Subtitle C—Agriculture 

13 SEC. 431. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘Louisiana Hurri15 cane Katrina Agricultural Disaster Relief Act of 2005’’. 

16 SEC. 432. APPLICATION TO LOUISIANA PARISHES DES17 IGNATED AS DISASTER AREAS DUE TO HUR18 RICANE KATRINA OR RELATED CONDITIONS. 

19 In this subtitle, the term ‘‘disaster parish’’ means a 

20 parish in the State of Louisiana, all or a portion of which 

21 is included in the geographic area covered by a natural 

22 disaster declaration— 

23 (1) made by the Secretary of Agriculture under 

24 section 321(a) of the Consolidated Farm and Rural 
208 

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1 Development Act (7 U.S.C. 1961(a)) due to Hurri2 cane Katrina or related conditions; or 

3 (2) made by the President under the Robert T. 

4 Stafford Disaster Relief and Emergency Assistance 

5 Act (42 U.S.C. 5121 et seq.) due to Hurricane 

6 Katrina or related conditions. 

7 SEC. 433. CROP DISASTER ASSISTANCE. 

8 (a) EMERGENCY FINANCIAL ASSISTANCE.—Notwith9 standing section 508(b)(7) of the Federal Crop Insurance 

10 Act (7 U.S.C. 1508(b)(7)), the Secretary of Agriculture 

11 shall use $25,000,000 of the funds of the Commodity 

12 Credit Corporation to make emergency financial assist13 ance authorized under this section available to producers 

14 on a farm in a disaster parish (other than producers of 

15 sugar cane) that have incurred qualifying crop or quality 

16 losses for the 2005 crop of an insurable commodity or non17 insurable commodity due to Hurricane Katrina or a re18 lated condition. In the case strawberries, assistance under 

19 this section shall be available for the 2005 and 2006 crops 

20 for damages to such crops due to Hurricane Katrina or 

21 a related condition. 

22 (b) ADMINISTRATION.—The Secretary of Agriculture 

23 shall make assistance available under this section in the 

24 same manner as provided under section 815 of the Agri25 culture, Rural Development, Food and Drug Administra-
209 

•S 1766 IS 

1 tion, and Related Agencies Appropriations Act, 2001 

2 (Public Law 106–387; 114 Stat. 1549A–55), including 

3 using the same loss thresholds for the quantity and quality 

4 losses as were used in administering that section. 

5 (c) INELIGIBILITY FOR ASSISTANCE.—Except as pro6 vided in subsection (d), the producers on a farm shall not 

7 be eligible for assistance under this section with respect 

8 to losses to an insurable commodity or noninsurable com9 modity if the producers on the farm— 

10 (1) in the case of an insurable commodity, did 

11 not obtain a policy or plan of insurance for the in12 surable commodity under the Federal Crop Insur13 ance Act (7 U.S.C. 1501 et seq.) for the crop incur14 ring the losses; 

15 (2) in the case of a noninsurable commodity, 

16 did not file the required paperwork, and pay the ad17 ministrative fee by the applicable State filing dead18 line, for the noninsurable commodity under section 

19 196 of the Federal Agriculture Improvement and 

20 Reform Act of 1996 (7 U.S.C. 7333) for the crop 

21 incurring the losses; 

22 (3) had adjusted gross incomes, as defined by 

23 section 1001D of the Food Security Act of 1985, of 

24 greater than $2,500,000 in 2004; or 
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•S 1766 IS 

1 (4) were not in compliance with highly erodible 

2 land conservation and wetland conservation provi3 sions. 

4 (d) CONTRACT WAIVER.—The Secretary of Agri5 culture may waive subsection (c) with respect to the pro6 ducers on a farm if the producers enter into a contract 

7 with the Secretary under which the producers agree— 

8 (1) in the case of all insurable commodities pro9 duced on the farm for each of the next two crop 

10 years— 

11 (A) to obtain additional coverage for those 

12 commodities under the Federal Crop Insurance 

13 Act (7 U.S.C. 1501 et seq.); and 

14 (B) in the event of violation of the con15 tract, to repay to the Secretary any payment re16 ceived under this section; and 

17 (2) in the case of all noninsurable commodities 

18 produced on the farm for each of the next two crop 

19 or calendar years, as applicable— 

20 (A) to file the required paperwork, and pay 

21 the administrative fee by the applicable State 

22 filing deadline, for those commodities under sec23 tion 196 of the Federal Agriculture Improve24 ment and Reform Act of 1996 (7 U.S.C. 7333); 

25 and 
211 

•S 1766 IS 

1 (B) in the event of violation of the con2 tract, to repay to the Secretary any payment re3 ceived under this section. 

4 (e) PAYMENT LIMITATIONS.— 

5 (1) LIMIT ON AMOUNT OF ASSISTANCE.—As6 sistance provided under this section to a producer 

7 for losses to a crop, together with the amounts speci8 fied in paragraph (2) applicable to the same crop, 

9 may not exceed 95 percent of what the value of the 

10 crop would have been in the absence of the losses, 

11 as estimated by the Secretary of Agriculture. 

12 (2) OTHER PAYMENTS.—In applying the limita13 tion in paragraph (1), the Secretary shall include the 

14 following: 

15 (A) Any crop insurance payment made 

16 under the Federal Crop Insurance Act (7 

17 U.S.C. 1501 et seq.) or payment under section 

18 196 of the Federal Agricultural Improvement 

19 and Reform Act of 1996 (7 U.S.C. 7333) that 

20 the producer receives for losses to the same 

21 crop. 

22 (B) The value of the crop that was not lost 

23 (if any), as estimated by the Secretary. 

24 (f) DEFINITIONS.—In this section: 
212 

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1 (1) ADDITIONAL COVERAGE.—The term ‘‘addi2 tional coverage’’ has the meaning given the term in 

3 section 502(b)(1) of the Federal Crop Insurance Act 

4 (7 U.S.C. 1502(b)(1)). 

5 (2) 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 

10 U.S.C. 1501 et seq.). 

11 (3) NONINSURABLE COMMODITY.—The term 

12 ‘‘noninsurable commodity’’ means an eligible crop 

13 for which the producers on a farm are eligible to ob14 tain assistance under section 196 of the Federal Ag15 riculture Improvement and Reform Act of 1996 (7 

16 U.S.C. 7333). 

17 SEC. 434. SUGARCANE DISASTER ASSISTANCE. 

18 (a) COMPENSATION FOR LOSSES.—The Secretary of 

19 Agriculture shall make available to a first processor of 

20 sugarcane that operates in a disaster parish or obtains 

21 sugarcane from a disaster parish and that is eligible to 

22 obtain a loan under section 156(a) of the Federal Agri23 culture Improvement and Reform Act of 1996 (7 U.S.C. 

24 7272(a)) assistance, in the form of payments or commod25 ities in the inventory of the Commodity Credit Corporation 
213 

•S 1766 IS 

1 derived from carrying out that section, to partially com2 pensate producers and first processors for crop and other 

3 losses due to Hurricane Katrina. 

4 (b) ADMINISTRATION.—Assistance under subsection 

5 (a) shall be— 

6 (1) shared by an affected first processor with 

7 affected producers that provide commodities to the 

8 processor in a manner that reflects contracts entered 

9 into between the processor and the producers; and 

10 (2) made available under such terms and condi11 tions as the Secretary of Agriculture determines are 

12 necessary to carry out subsection (a). 

13 (c) AMOUNT OF ASSISTANCE.—To carry out sub14 section (a), the Secretary of Agriculture shall— 

15 (1) use 336,697 tons of commodities in the in16 ventory of the commodity Credit Corporation under 

17 section 156(a) of the Federal Agriculture Improve18 ment and Reform Act of 1996 (7 U.S.C. 7272 (a)); 

19 (2) make payments in an aggregate amount 

20 equal to the market value of the quantity of com21 modities specified in paragraph (1); or 

22 (3) take any combination of actions described in 

23 paragraphs (1) and (2) using commodities or pay24 ments with a total value equal to the market value 
214 

•S 1766 IS 

1 of the quantity of commodities specified in para2 graph (1). 

3 (d) LIMITATION.—Out of any funds in the Treasury 

4 that are not otherwise appropriated, there is appropriated 

5 to carry out this section, $125,000,000 for fiscal year 

6 2005, to remain available until expended. 

7 (e) SUGARCANE RESEARCH FACILITY.—The Sec8 retary of Agriculture shall use $25,490,073 of the funds 

9 of the Commodity Credit Corporation to complete the Sug10 arcane Research Laboratory of the Agricultural Research 

11 Service at Houma, Louisiana. 

12 (f) BUILDINGS AND FACILITIES.—The Secretary of 

13 Agriculture shall use $120,000,000 of funds of the Com14 modity Credit Corporation for the clean up, renovation, 

15 repair, and replacement of laboratory facilities and equip16 ment at the Southern Regional Research Center of the Ag17 ricultural Research Service at New Orleans, Louisiana. 

18 SEC. 435. COMPENSATION FOR INFRASTRUCTURE LOSSES. 

19 (a) INFRASTRUCTURE LOSSES.—Out of any funds in 

20 the Treasury not otherwise appropriated, there is appro21 priated to the Secretary of Agriculture, $40,000,000 to 

22 compensate agricultural producers on a farm operating in 

23 a disaster parish for costs incurred to repair or replace 

24 barns and other structures, equipment, and fencing that— 
215 

•S 1766 IS 

1 (1) was used to produce an agricultural com2 modity; and 

3 (2) was damaged or destroyed by Hurricane 

4 Katrina or related conditions or in responding to the 

5 aftermath of the hurricane. 

6 (b) TIMING OF ASSISTANCE.—The Secretary of Agri7 culture may provide assistance authorized under this sec8 tion in the form of— 

9 (1) reimbursement for eligible repair or replace10 ment costs previously incurred by producers; or 

11 (2) cash or in-kind assistance in advance of the 

12 producer undertaking the needed repair or replace13 ment work. 

14 (c) PAYMENT LIMITATIONS.—Assistance provided 

15 under this section to a producer for a repair or replace16 ment project, together with amounts received for the same 

17 project from insurance proceeds, section or other sources, 

18 may not exceed 95 percent of the costs incurred to repair 

19 or replace the damaged or destroyed structures, equip20 ment, or fencing, as estimated by the Secretary of Agri21 culture. 

22 SEC. 436. ASSISTANCE TO DAIRY AND LIVESTOCK PRO23 DUCERS. 

24 (a) DAIRY CATTLE LOSSES.—The Secretary of Agri25 culture shall use $250,000 of funds of the Commodity 
216 

•S 1766 IS 

1 Credit Corporation to make payments for dairy cattle 

2 losses of dairy producers in disaster parishes due to Hurri3 cane Katrina or related conditions. To the maximum ex4 tent practicable, the Secretary shall make assistance avail5 able under this subsection in the same manner as provided 

6 under section 806 of the Agriculture, Rural Development, 

7 Food and Drug Administration, and Related Agencies Ap8 propriations Act, 2001 (Public Law 106–387; 114 Stat. 

9 1549A–51). A disaster parish so declared by the President 

10 as a result of Hurricane Katrina in accordance with sec11 tion 401 of the Robert T. Stafford Disaster Relief and 

12 Emergency Assistance Act (42 U.S.C. 5170) that does not 

13 qualify for assistance under this section shall be eligible 

14 for assistance in the same manner as provided in section 

15 203 of the Agricultural Assistance Act of 2003 (16 U.S.C. 

16 3801 note). 

17 (b) INDEMNITY PROGRAM FOR OTHER LIVESTOCK

18 LOSSES.—The Secretary of Agriculture shall use 

19 $11,000,000 of the funds of the Commodity Credit Cor20 poration to carry out a livestock indemnity program to 

21 make payments to producers on farms in disaster parishes 

22 that have incurred livestock losses, not covered by sub23 section (a), due to Hurricane Katrina or related condi24 tions. To the maximum extent practicable, the Secretary 

25 shall use the criteria established under the program re-
217 

•S 1766 IS 

1 ferred to under the heading ‘‘LIVESTOCK INDEMNITY

2 PROGRAM’’ in chapter 1 of title I of the 1999 Emergency 

3 Supplemental Appropriations Act (Public Law 106–31; 

4 113 Stat. 59), except that the Secretary shall use a pay5 ment rate of $1,000 per head of cattle and shall not im6 pose any limitation on the maximum amount of payments 

7 that a producer may receive under this subsection. 

8 (c) DAIRY PRODUCTION LOSSES.—The Secretary of 

9 Agriculture shall use $5,000,000 of funds of the Com10 modity Credit Corporation to compensate dairy producers 

11 operating in disaster parishes for dairy production losses 

12 and dairy spoilage losses incurred in the aftermath of 

13 Hurricane Katrina. 

14 (d) LIVESTOCK COMPENSATION PROGRAM.—The 

15 Secretary of Agriculture shall use $5,000,000 of the funds 

16 of the Commodity Credit Corporation to carry out a live17 stock compensation program to make payments for live18 stock-related losses, not covered by subsection (b), in dis19 aster parishes due to Hurricane Katrina or related condi20 tions. To the maximum extent practicable, the Secretary 

21 shall use the criteria established under the program re22 ferred to in section 203(a) of the Agricultural Assistance 

23 Act of 2003 (title II of division N of the Consolidated Ap24 propriations Resolution, 2003; Public Law 108–7; 117 

25 Stat. 539), except that the Secretary shall not impose any 
218 

•S 1766 IS 

1 limitation on the maximum amount of payments that a 

2 producer may receive under this subsection. 

3 (e) EMERGENCY ANIMAL HEALTH AND FORAGE

4 COSTS.—The Secretary of Agriculture shall use 

5 $4,375,000 of funds of the Commodity Credit Corporation 

6 to compensate dairy producers operating in disaster par7 ishes for emergency dairy cattle health costs and increased 

8 forage costs due to a 30- to 90-day delay in planning in 

9 the aftermath of Hurricane Katrina. 

10 SEC. 437. EMERGENCY CITRUS DISASTER, NURSERY CROP 

11 AND CHRISTMAS TREE DISASTER, AND 

12 STRAWBERRY, HORTICULTURAL CROPS, 

13 FALL FRUITS AND VEGETABLES DISASTER 

14 PROGRAMS. 

15 (a) PROGRAMS REQUIRED.—The Secretary of Agri16 culture shall transfer to the fund established by section 

17 32 of the Act of August 24, 1935 (7 U.S.C. 612c), 

18 $34,000,000 of funds of the Commodity Credit Corpora19 tion to carry out a Citrus Disaster Program, Nursery Crop 

20 and Christmas Tree Disaster Program, and Strawberry, 

21 Horticultural Crops, Fall Fruits and Vegetables Program 

22 in disaster parishes due to Hurricane Katrina or related 

23 conditions. 

24 (b) ADMINISTRATION.— 
219 

•S 1766 IS 

1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the disaster programs re3 quired by subsection (a) shall be carried out by the 

4 Secretary of Agriculture in the same manner as the 

5 special disaster relief programs carried out for pro6 ducers who suffered from crop damage and tree 

7 losses, and who had to perform related cleanup, in 

8 certain areas of Florida due to Hurricanes Charley, 

9 Frances and Jeanne during August and September 

10 2004. Because of the complete destruction of the 

11 business records of many producers, the Secretary 

12 shall use the best available information in deter13 mining eligibility, determining losses, and calculating 

14 payment amounts under the programs. 

15 (2) SPECIAL ACREAGE COMPENSATION AMOUNT

16 FOR CITRUS LOSSES.—Because of the complete loss 

17 of the Louisiana citrus crop due to Hurricane 

18 Katrina, the Secretary shall use only Tier 1 of the 

19 Florida Citrus Disaster Program in administering 

20 the Citrus Disaster Program required by subsection 

21 (a), and the per acre compensation for crop loss and 

22 associated tree damage in eligible groves of citrus 

23 shall be $9,023 rather than $1,500. 

24 (3) SPECIAL LOSS THRESHOLD AND PAYMENT

25 RATE FOR HORTICULTURAL CROPS.—In the case of 
220 

•S 1766 IS 

1 the Strawberry, Horticultural Crops, Fall Fruits and 

2 Vegetables Program required by subsection (a), the 

3 Secretary shall cover losses greater than 35 percent, 

4 rather than 50 percent, and use a single payment 

5 rate of $2,500 per acre for planted fruits and vege6 tables. 

7 (4) SPECIAL PAYMENT RATE FOR SEVERE

8 NURSERY CROP LOSSES.—In the case of nursery 

9 crop losses of greater than 25 percent under the 

10 Nursery Crop and Christmas Tree Disaster Program 

11 required by subsection (a), the Secretary shall pay 

12 75 percent of the actual dollar amount loss, rather 

13 than 25 percent. 

14 (5) PAYMENT LIMITATIONS.—The Secretary 

15 shall not impose any limitation on the maximum 

16 amount of payments that a producer may receive 

17 under a program required by subsection (a). 

18 (c) RELATION TO OTHER ASSISTANCE.—Persons 

19 that receive payments from section 32 of the Act of Au20 gust 24, 1935, pursuant to a disaster program required 

21 by subsection (a) are not eligible for payments for quali22 fying crop or quality losses under the general crop disaster 

23 assistance authority of section 443. 
221 

•S 1766 IS 

1 SEC. 438. CONSERVATION PROGRAMS. 

2 (a) TEMPORARY SODBUSTER AND SWAMPBUSTER

3 WAIVER.—Subtitles B and C of title XII of the Food Se4 curity Act of 1985 (16 U.S.C. 3811 et seq.) shall not apply 

5 in a disaster parish during the two-year period beginning 

6 on the date of enactment of this Act. 

7 (b) DEBRIS REMOVAL.—The Secretary of Agriculture 

8 may use the Natural Resources Conservation Service to 

9 conduct debris-removal activities on non-Federal forest 

10 land, with the permission of the owner of the land, in a 

11 disaster parish to reduce the risk of future catastrophic 

12 wildfires that would adversely affect watersheds and rural 

13 communities. 

14 (c) ADDITIONAL EMERGENCY WATERSHED PROTEC15 TION PROGRAM FUNDS.—The Secretary of Agriculture 

16 shall use an additional $190,000,000 of the funds of the 

17 Commodity Credit Corporation for the Emergency Water18 shed Protection Program to provide additional funds for 

19 the repair of damages to waterways and watersheds in dis20 aster parishes resulting from Hurricane Katrina. 

21 (d) ADDITIONAL EMERGENCY CONSERVATION PRO22 GRAM FUNDS.—The Secretary of Agriculture shall use an 

23 additional $40,000,000 of the funds of the Commodity 

24 Credit Corporation to provide assistance under the Emer25 gency Conservation Program under title IV of the Agricul26 tural Credit Act of 1978 (16 U.S.C. 2201 et seq.) in par-
222 

•S 1766 IS 

1 ishes in the State of Louisiana declared to be disaster 

2 areas by the President due to Hurricane Katrina and re3 lated conditions. 

4 SEC. 439. TREE ASSISTANCE PROGRAM. 

5 (a) INCLUSION OF TIMBER AND CHRISTMAS TREE

6 CROPS.—In administering the tree assistance program es7 tablished under sections 10201 through 10204 of the 

8 Farm Security and Rural Investment Act of 2002 (7 

9 U.S.C. 8201 et seq.), the Secretary of Agriculture shall 

10 provide $25,000,000 to forest land owners who produce 

11 periodic crops of timber or Christmas trees for commercial 

12 purposes and who have suffered tree losses in disaster par13 ishes due to Hurricane Katrina or related conditions 

14 (b) COST-SHARING WAIVERS.— 

15 (1) TREE ASSISTANCE PROGRAM.—The cost16 sharing requirements of section 10203(1) of the 

17 Farm Security and Rural Investment Act of 2002 (7 

18 U.S.C. 8203(1)) shall not apply to the operation of 

19 the tree assistance program in disaster parishes in 

20 response to Hurricane Katrina or related conditions. 

21 (2) COOPERATIVE FORESTRY ASSISTANCE

22 ACT.—The cost-sharing requirements of the Cooper23 ative Forestry Assistance Act of 1978 (16 U.S.C. 

24 2101) shall not apply in disaster parishes during the 
223 

•S 1766 IS 

1 two-year period beginning on the date of enactment 

2 of this Act. 

3 (c) RELATION TO OTHER ASSISTANCE.—Persons 

4 that receive payments from section 32 of the Act of Au5 gust 24, 1935 (7 U.S.C. 612c), pursuant to the Citrus 

6 Disaster Program required by section 447 are not eligible 

7 for payments under the tree assistance program. 

8 (d) ADDITIONAL STATE AND PRIVATE FORESTRY

9 PROGRAM FUNDS.—The Secretary of Agriculture shall 

10 use an additional $28,300,000 of the funds of the Com11 modity Credit Corporation to support State and Private 

12 Forestry programs of the Department of Agriculture to 

13 provide additional funds for the restoration and rehabilita14 tion of forest lands destroyed or damaged by Hurricane 

15 Katrina in disaster parishes. 

16 SEC. 440. ADDITIONAL FUNDS FOR COOPERATIVE STATE 

17 RESEARCH, EDUCATION, AND EXTENSION 

18 SERVICE. 

19 The Secretary of Agriculture shall use an additional 

20 $34,193,591 of the funds of the Commodity Credit Cor21 poration to support the research and education activities 

22 of the Cooperative State Research, Education, and Exten23 sion Service in disaster parishes. Of such amount, 

24 $9,060,000 shall be made available to the Louisiana Agri25 cultural Experiment Station, $10,133,591 shall be made 
224 

•S 1766 IS 

1 available to the Louisiana Cooperative Extension Service, 

2 and $15,000,000 shall be made available to the Louisiana 

3 State University Agricultural Center to carry out the Hur4 ricane Forestry Damage Research Initiative. 

5 SEC. 441. DELTA REGIONAL AUTHORITY EXPANSION. 

6 (a) DEFINITION OF REGION.—For purposes of sub7 title F of the Consolidated Farm and Rural Development 

8 Act (7 U.S.C. 2009aa et seq.), any area affected by a dec9 laration of a major disaster in accordance with section 401 

10 of the Robert T. Stafford Disaster Relief and Emergency 

11 Assistance Act (42 U.S.C. 5170) in response to Hurricane 

12 Katrina shall be considered to be a region (as defined in 

13 section 382A of that subtitle). 

14 (b) ECONOMIC AND COMMUNITY DEVELOPMENT

15 GRANTS.—For purposes of section 382C of the Consoli16 dated Farm and Rural Development Act (7 U.S.C. 

17 2009aa–2), the Delta Regional Authority may approve a 

18 grant to a State or a public or nonprofit entity to provide 

19 economic redevelopment assistance in response to damage 

20 from Hurricane Katrina or a related condition, or any 

21 other nationally significant incident, as determined by the 

22 President. 

23 (c) FUNDING LIMITATION.—Funding limitations 

24 under section 382D(b) of the Consolidated Farm and 

25 Rural Development Act (7 U.S.C. 2009aa–3(b)) shall not 
225 

•S 1766 IS 

1 apply to any reconstruction effort relating to a major dis2 aster declared in accordance with section 401 of the Rob3 ert T. Stafford Disaster Relief and Emergency Assistance 

4 Act (42 U.S.C. 5170) in response to Hurricane Katrina 

5 for the 3-year period beginning on the date on which the 

6 major disaster is declared. 

7 (d) APPROPRIATION.— 

8 (1) IN GENERAL.—Out of any funds of the 

9 Treasury not otherwise appropriated, there is appro10 priated to the Secretary of Agriculture, $27,000,000 

11 for fiscal year 2005 to provide economic and commu12 nity development grants in accordance with section 

13 382C of the Consolidated Farm and Rural Develop14 ment Act (7 U.S.C. 2009aa–2) for projects in com15 munities affected by Hurricane Katrina or a related 

16 condition. 

17 (2) AVAILABILITY.—Amounts made available 

18 under paragraph (1) shall remain available until ex19 pended. 

20 SEC. 442. WATER AND WASTE DISPOSAL LOAN AND GRANT 

21 PROGRAMS. 

22 In the case of water or waste disposal grants or direct 

23 or guaranteed loans under paragraph (1), (2), or (24) of 

24 section 306(a) of the Consolidated Farm and Rural Devel25 opment Act (7 U.S.C. 1926(a)) made in an area des-
226 

•S 1766 IS 

1 ignated a major disaster area by the President under the 

2 Robert T. Stafford Disaster Relief and Emergency Assist3 ance Act (42 U.S.C. 5121 et seq.), section 343(a)(13)(B) 

4 of that Act and section 149(b) of the Internal Code of 

5 1986 shall not apply. 

6 SEC. 443. COMMUNITY FACILITIES LOAN AND GRANT PRO7 GRAMS. 

8 (a) IN GENERAL.—In the case of community facility 

9 direct and guaranteed loans under section 306(a)(1) of the 

10 Consolidated Farm and Rural Development Act (7 U.S.C. 

11 1926(a)(1)) and community facility grants under para12 graph (19), (20), or (21) of section 306(a) of that Act 

13 made in an area designated a major disaster area by the 

14 President under the Robert T. Stafford Disaster Relief 

15 and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 

16 sections 306(a)(21)(A)(iv) and 343(a)(13)(C) of that Act 

17 and section 149(b) of the Internal Code of 1986 shall not 

18 apply. 

19 (b) RESTRUCTURING.—A borrower receiving a guar20 anteed loan or grant described in subsection (a) as of the 

21 date of enactment of this Act may restructure the loan 

22 at new rates and terms regardless of the status of the 

23 loan. 

24 (c) REDUCTION OF GUARANTEE FEE.—Notwith25 standing any provision of the Consolidated Farm and 
227 

•S 1766 IS 

1 Rural Development Act (7 U.S.C. 1921 et seq.) (including 

2 associated regulations), the Secretary of Agriculture may 

3 waive all or part of any fee associated with a guaranteed 

4 loan described in subsection (a). 

5 SEC. 444. RURAL COMMUNITY ADVANCEMENT FUNDS. 

6 (a) IN GENERAL.—Subject to subsection (b), in addi7 tion to any other amounts made available by law, the Sec8 retary of Agriculture shall use— 

9 (1) $120,000,000 to make water and waste dis10 posal direct loans under section 306(a)(1) of the 

11 Consolidated Farm and Rural Development Act (7 

12 U.S.C. 1926(a)(1)); 

13 (2) $60,000,000 to make water and waste dis14 posal grants under section 306(a)(2) of that Act (7 

15 U.S.C. 1926(a)(2)); 

16 (3) $10,000,000 to make water and waste dis17 posal guaranteed loans under section 306(a)(24) of 

18 that Act (7 U.S.C. 1926(a)(24)); 

19 (4) $20,000,000 to make emergency community 

20 water assistance grants under section 306A of that 

21 Act (7 U.S.C. 1926a); 

22 (5) $120,000,000 to make community facilities 

23 direct loans under section 306(a)(1) of that Act (7 

24 U.S.C. 1926(a)(1)); 
228 

•S 1766 IS 

1 (6) $60,000,000 to make community facilities 

2 grants under paragraph (19), (20), or (21) of sec3 tion 306(a) of that Act (7 U.S.C. 1926(a)); and 

4 (7) $20,000,000 to make community facilities 

5 guaranteed loans under section 306(a)(1) of that 

6 Act (7 U.S.C. 1926(a)). 

7 (b) REQUIREMENT.—Loans and grants funded under 

8 this section shall be available for projects in communities 

9 in the State of Louisiana in areas that have been des10 ignated as major disaster areas by the President under 

11 the Robert T. Stafford Disaster Relief and Emergency As12 sistance Act (42 U.S.C. 5121 et seq.). 

13 (c) EMERGENCY DESIGNATION.—The amounts made 

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

15 section are designated as an emergency requirement pur16 suant to section 402 of H. Con. Res. 95 (109th Congress). 

17 SEC. 445. REGULATIONS. 

18 (a) IN GENERAL.—The Secretary of Agriculture may 

19 promulgate such regulations as are necessary to imple20 ment this subtitle and the amendments made by this sub21 title. 

22 (b) PROCEDURE.—The promulgation of the regula23 tions and administration of this subtitle and the amend24 ments made by this subtitle shall be made without regard 

25 to— 
229 

•S 1766 IS 

1 (1) the notice and comment provisions of sec2 tion 553 of title 5, United States Code; 

3 (2) the Statement of Policy of the Secretary of 

4 Agriculture effective July 24, 1971 (36 Fed. Reg. 

5 13804), relating to notices of proposed rulemaking 

6 and public participation in rulemaking; and 

7 (3) chapter 35 of title 44, United States Code 

8 (commonly known as the ‘‘Paperwork Reduction 

9 Act’’). 

10 (c) CONGRESSIONAL REVIEW OF AGENCY RULE11 MAKING.—In carrying out this section, the Secretary of 

12 Agriculture shall use the authority provided under section 

13 808 of title 5, United States Code. 

14 Subtitle D—Privately Owned 

15 Utility Restoration 

16 SEC. 461. SHORT TITLE. 

17 This subtitle may be cited as the ‘‘Privately Owned 

18 Utility System Restoration Act of 2005’’. 

19 SEC. 462. DEFINITIONS. 

20 In this subtitle: 

21 (1) DIRECT LOSS.—The term ‘‘direct loss’’ 

22 means an amount equal to the sum of— 

23 (A) the total undepreciated costs of any 

24 plant and property of a privately owned utility 
230 

•S 1766 IS 

1 that is no longer used or useful as a result of 

2 Hurricane Katrina; and 

3 (B) the total restoration costs of a pri4 vately owned utility. 

5 (2) ELECTRIC UTILITY COMPANY.—The term 

6 ‘‘electric utility company’’ has the meaning given the 

7 term in section 1262 of the Public Utility Holding 

8 Company Act of 2005 (Public Law 109–58). 

9 (3) GAS UTILITY COMPANY.—The term ‘‘gas 

10 utility company’’ has the meaning given the term in 

11 section 1262 of the Public Utility Holding Company 

12 Act of 2005 (Public Law 109–58). 

13 (4) INCREMENTAL LOSS.—The term ‘‘incre14 mental loss’’ means the amount, calculated on a 

15 monthly basis, that is equal to the difference be16 tween— 

17 (A) an amount equal to the difference be18 tween— 

19 (i) the most recent total revenue re20 quirement of the privately owned utility, as 

21 established by the regulatory authority 

22 with jurisdiction over the retail rates of the 

23 privately owned utility; and 

24 (ii) the sum of— 
231 

•S 1766 IS 

1 (I) direct fuel and purchased en2 ergy costs; and 

3 (II) the costs associated with the 

4 recovery of the undepreciated cost of 

5 all plants of the privately owned util6 ity that are no longer used or useful 

7 as a result of Hurricane Katrina; and 

8 (B) the total amount of revenues recovered 

9 from customers of the privately owned utility 

10 during the applicable period, excluding the por11 tion of the customer revenues that is attrib12 utable to the recovery of direct fuel and pur13 chased energy costs. 

14 (5) PRIVATELY OWNED UTILITY.—The term 

15 ‘‘privately owned utility’’ means an electric utility 

16 company or a gas utility company. 

17 (6) RESTORATION COST.—The term ‘‘restora18 tion cost’’ means the amount equal to the difference 

19 between— 

20 (A) any costs incurred by a privately 

21 owned utility as a result of Hurricane Katrina 

22 that are eligible to be recorded by a privately 

23 owned utility under the sections of the Federal 

24 Energy Regulatory Commission Uniform Sys25 tem of Accounts in which storm damage and 
232 

•S 1766 IS 

1 restoration costs are recorded, including the ac2 counts numbered 107, 108, 118, 119, 174.1, 

3 and 228.1, as determined by the rules and reg4 ulations of the regulatory authority having ju5 risdiction over the retail rates of the privately 

6 owned utility; and 

7 (B) any insurance proceeds received by the 

8 privately owned utility that relate to direct 

9 losses and restoration costs of the privately 

10 owned utility. 

11 (7) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Energy. 

13 SEC. 463. PRIVATELY OWNED UTILITY DISASTER RELIEF. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law and subject to section 454, the President shall, 

16 in accordance with subsection (b), compensate privately 

17 owned utilities in the State of Louisiana (including the 

18 city of New Orleans) for losses incurred as a result of 

19 Hurricane Katrina. 

20 (b) COMPENSATION FOR DIRECT AND INCREMENTAL

21 LOSSES.— 

22 (1) IN GENERAL.—The President shall com23 pensate privately owned utilities for— 

24 (A) direct losses to the transmission, dis25 tribution, and generation facilities and infra-
233 

•S 1766 IS 

1 structure of electric utility companies and direct 

2 losses to the facilities and infrastructure of gas 

3 utility companies incurred, beginning on August 

4 29, 2005, by privately owned utilities as a re5 sult of Hurricane Katrina; and 

6 (B) the incremental losses incurred during 

7 the period beginning August 29, 2005, and end8 ing December 31, 2007, by the privately owned 

9 utilities as a result of Hurricane Katrina. 

10 (2) LIMITATIONS.— 

11 (A) MAXIMUM AMOUNT.—The total amout 

12 of compensation that may be provided to any 1 

13 privately owned utility under paragraph (1) 

14 shall be $2,500,000,000. 

15 (B) LOAD REQUIREMENTS.— 

16 (i) IN GENERAL.—A privately owned 

17 utility shall not be entitled to monthly pay18 ments under paragraph (1)(A) unless the 

19 load of the privately owned utility for the 

20 applicable month is not more than 80 per21 cent of the load of the privately owned util22 ity in the corresponding month during the 

23 period beginning August 2004 and ending 

24 July 2005. 
234 

•S 1766 IS 

1 (ii) LOAD MEASUREMENT.—For pur2 poses of clause (i)— 

3 (I) in the case of an electric util4 ity company, the load shall be meas5 ured in kilowatt hours; and 

6 (II) in the case of a gas utility 

7 company, the load shall be measured 

8 in thousands of cubic feet of gas. 

9 (c) EMERGENCY DESIGNATION.—Any amount appro10 priated pursuant to this section is designated as an emer11 gency requirement pursuant to section 402 of H. Con. 

12 Res. 95 (109th Congress). 

13 SEC. 464. REQUIREMENTS FOR COMPENSATION; REGULA14 TIONS. 

15 (a) DOCUMENTATION.— 

16 (1) IN GENERAL.—Subject to subsection (b), 

17 the amount of compensation payable to a privately 

18 owned utility under section 453(b) may not exceed 

19 the amount of losses described in subparagraphs (A) 

20 and (B) of paragraph (1) of that subsection that the 

21 President determines, based on sworn financial 

22 statements or other appropriate data provided by the 

23 privately owned utility, were incurred by the pri24 vately owned utility. 
235 

•S 1766 IS 

1 (2) AUDIT.—The Secretary and the Comptroller 

2 General of the United States may— 

3 (A) audit any statements of a privately 

4 owned utility that receives compensation under 

5 this subtitle; and 

6 (B) for purposes of an audit under sub7 paragraph (A), request any information that 

8 the Secretary and the Comptroller General de9 termine to be necessary. 

10 (b) PAYMENTS.— 

11 (1) IN GENERAL.—Subject to paragraph (2), 

12 the President may provide compensation to privately 

13 owned utilities under section 453(b) in 1 or more 

14 payments up to the maximum amount specified in 

15 453(b)(2)(A). 

16 (2) SCHEDULE.—Payments under paragraph 

17 (1) shall only be made during the period beginning 

18 on the date that is not later than 60 days after the 

19 date of enactment of this Act and ending March on 

20 31, 2008. 

21 (c) REGULATIONS.—Not later than 15 days after the 

22 date of enactment of this Act, the Secretary, in consulta23 tion with the Attorney General, shall promulgate regula24 tions to carry out this subtitle, including regulations with 

25 respect to— 
236 

•S 1766 IS 

1 (1) the forms to be used by privately owned 

2 utilities for submitting claims under this subtitle, in3 cluding the information to be included in the forms; 

4 (2) the procedures for considering claims sub5 mitted under this subtitle; and 

6 (3) any other matters determined by the Sec7 retary to be appropriate. 

8 SEC. 465. NATIONAL ENERGY INFRASTRUCTURE ZONES. 

9 (a) PRIORITY AREAS.—If there is an incident or event 

10 that, as determined by the Secretary of Energy (referred 

11 to in this section as the ‘‘Secretary’’), compromises the 

12 reliable and affordable supply of electricity to retail, indus13 trial, and business customers, the Secretary shall give pri14 ority to protecting and, as appropriate, restoring the en15 ergy infrastructure system compromised. 

16 (b) DESIGNATION OF NATIONAL ENERGY INFRA17 STRUCTURE ZONES.— 

18 (1) IN GENERAL.—If there is an incident (in19 cluding a natural disaster) that, as determined by 

20 the Secretary, threatens the reliability of the energy 

21 infrastructure system, including the production, re22 fining, transmission, and distribution of oil, gas, and 

23 electricity, the Secretary shall designate the threat24 ened energy infrastructure system as a National En25 ergy Infrastructure Zone. 
237 

•S 1766 IS 

1 (2) REPORT.—Not later than 90 days after the 

2 date of the threatening incident, the Secretary shall 

3 submit to Congress a report with respect to any Na4 tional Energy Infrastructure Zone designated under 

5 paragraph (1) that describes— 

6 (A) any actions that are necessary to pro7 tect, improve, revitalize, rebuild, or otherwise 

8 strengthen the affected energy infrastructure 

9 systems; 

10 (B) any actions, methods, rules, regula11 tions, and processes that are necessary to im12 prove, strengthen, and rebuild the affected en13 ergy infrastructure systems in the National En14 ergy Infrastructure Zone; and 

15 (C) any actions that are necessary to en16 sure that any National Energy Infrastructure 

17 Zones are improved, strengthened, or rebuilt in 

18 a manner that ensures— 

19 (i) to the maximum extent practicable, 

20 energy infrastructure system reliability; 

21 (ii) lowest possible costs for energy in22 frastructure system consumers; 

23 (iii) that national security is improved 

24 and strengthened; and 
238 

•S 1766 IS 

1 (iv) that the energy infrastructure 

2 system is able to be expanded in the fu3 ture. 

4 SEC. 466. PROVISIONS RELATING TO DEPOSITORY INSTITU5 TIONS AND CREDIT UNIONS. 

6 (a) GOVERNMENT CHECK CASHING.— 

7 (1) IN GENERAL.—Notwithstanding any provi8 sion of subchapter II of chapter 33 of title 31, 

9 United States Code, or any other provision of law, 

10 the Secretary of the Treasury shall indemnify any 

11 insured depository institution or insured credit union 

12 for any loss suffered by the institution through cash13 ing a check or other draft on public money in the 

14 Treasury, due to the fact that the check is fraudu15 lent or the identification of the bearer presenting 

16 such check or draft to the depository institution or 

17 credit union is fraudulent, if the depository institu18 tion or credit union— 

19 (A) has made prudent efforts to identify 

20 the bearer or presenter; and 

21 (B) has reason to believe the check or 

22 draft is presented for payment by an individual 

23 who resides in, or who prior to an evacuation 

24 of such individual due to Hurricane Katrina re-
239 

•S 1766 IS 

1 sided or was present in, an area described in 

2 subsection (b)(2). 

3 (2) COORDINATION WITH OTHER LAW.—Sec4 tions 3331 and 3343 of title 31, United States Code, 

5 shall continue to apply with respect to any check 

6 and any appropriate payee of such check, notwith7 standing the fact that the Secretary of the Treasury 

8 has already made a payment with respect to such 

9 check to an insured depository institution or an in10 sured credit union under paragraph (1). 

11 (b) LOAN PAYMENT DEFERRALS AND ‘‘FRESH

12 START’’ PROGRAMS.— 

13 (1) IN GENERAL.—No provision of Federal or 

14 State law, and no regulation, order, guideline, or 

15 other provision prescribed under any authority con16 ferred by any provision of Federal or State law, shall 

17 be construed as prohibiting any lender with respect 

18 to any loan described in paragraph (2) from refi19 nancing such loan, including the deferred principal 

20 and interest, on terms at least as favorable to the 

21 borrower as the terms of the original loan. 

22 (2) TYPES OF LOANS.—A loan described in this 

23 paragraph is any consumer loan, commercial loan, or 

24 mortgage loan— 
240 

•S 1766 IS 

1 (A) that is made to a borrower who resides 

2 in or has a place of business within, or is se3 cured by real or personal property located with4 in, an area in which the President, pursuant to 

5 section 401 of the Robert T. Stafford Disaster 

6 Relief and Emergency Assistance Act, has de7 termined, on or after August 26, 2005, that a 

8 major disaster exists, or within an area deter9 mined to be eligible for disaster relief under 

10 other Federal law by reason of damage related 

11 to Hurricane Katrina; and 

12 (B) on which any payment of principal or 

13 interest has been deferred due to the disaster 

14 caused by Hurricane Katrina. 

15 (c) WAIVER OF FEDERAL RESERVE BOARD FEES

16 FOR CERTAIN SERVICES.—Notwithstanding section 11A 

17 of the Federal Reserve Act (12 U.S.C. 248a) or any other 

18 provision of Federal law, the Board of Governors of the 

19 Federal Reserve System shall waive any fee or other 

20 charge imposed on any insured depository institution or 

21 insured credit union with respect to any currency and coin 

22 services or wire transfer services during the effective pe23 riod of this section. 
241 

•S 1766 IS 

1 (d) EFFECTIVE PERIOD.—The provisions of this sec2 tion shall not apply after the end of the 2-year period be3 ginning on the date of enactment of this Act. 

4 TITLE V—REBUILDING OF 

5 INFRASTRUCTURE 

6 Subtitle A—Actions by Federal 

7 Agencies 

8 SEC. 501. PELICAN COMMISSION. 

9 (a) ESTABLISHMENT.— 

10 (1) ESTABLISHMENT.—There is established a 

11 commission to be known as the ‘‘Protecting Essen12 tial Louisiana Infrastructure, Citizens, and Nature 

13 Commission’’ (referred to in this Act as the ‘‘Pelican 

14 Commission’’). 

15 (b) PURPOSES.—The purpose of the Pelican Commis16 sion is to provide for the design and implementation of 

17 a program that— 

18 (1) protects citizens, natural resources, essen19 tial infrastructure, and property from hurricanes, 

20 flooding, and erosion; 

21 (2) integrates and comprehensively addresses 

22 hurricane protection, flood control, coastal restora23 tion, storm surge protection, and navigation 

24 projects; and 
242 

•S 1766 IS 

1 (3) functions efficiently, timely, and reliably to 

2 maximize results, eliminate waste, reduce cost, and 

3 engender confidence. 

4 (c) MEMBERSHIP.— 

5 (1) COMPOSITION.—The Pelican Commission 

6 shall be composed of 9 members, of whom— 

7 (A) 1 member shall be appointed by the 

8 President and shall serve as Chairperson; 

9 (B) 1 member shall be the Chief of Engi10 neers; 

11 (C) 1 member shall be the Under Sec12 retary for Oceans and Atmosphere; 

13 (D) 1 member shall be a member of the 

14 Mississippi River Commission who is— 

15 (i) a civil life appointee; and 

16 (ii) unless none of the 3 civil life ap17 pointees on the Mississippi River Commis18 sion are residents of the State of Lou19 isiana, a resident of the State of Lou20 isiana; 

21 (E) 1 member shall be the Governor of the 

22 State of Louisiana; 

23 (F) 4 members shall be residents of that 

24 State and appointed by the President, of 

25 whom— 
243 

•S 1766 IS 

1 (i) 1 member shall have expertise in 

2 commerce; 

3 (ii) 1 member shall have expertise in 

4 the environment; 

5 (iii) 1 member shall have expertise in 

6 flood control; and 

7 (iv) 1 member shall have expertise in 

8 maritime matters. 

9 (2) DATE OF APPOINTMENTS.—The appoint10 ment of a member of the Pelican Commission shall 

11 be made not later than December 1, 2005. 

12 (3) TERM; VACANCIES.— 

13 (A) TERM.— 

14 (i) IN GENERAL.—A member who 

15 serves on the Pelican Commission because 

16 of holding Office of Chief of Engineers, 

17 Under Secretary of Oceans and Atmos18 phere, Mississippi River Commission, or 

19 Governor of the State of Louisiana shall 

20 serve on the commission so long as he 

21 holds office. 

22 (ii) PRESIDENTIAL APPOINTEES.—A 

23 member appointed by the President to the 

24 Pelican Commission shall serve for a term 

25 of 4 years and may be reappointed. 
244 

•S 1766 IS 

1 (B) VACANCIES.—A vacancy on the Peli2 can Commission— 

3 (i) shall not affect the powers of the 

4 Pelican Commission; and 

5 (ii) shall be filled not later than 30 

6 days after the date on which the vacancy 

7 occurred in the same manner as the origi8 nal appointment was made. 

9 (4) INITIAL MEETING.—Not later than 30 days 

10 after the date on which all members of the Pelican 

11 Commission have been appointed, the Pelican Com12 mission shall hold the initial meeting of the Pelican 

13 Commission. 

14 (5) MEETINGS.—The Pelican Commission— 

15 (A) shall meet at the call of the Chair16 person not less frequently than every 180 days; 

17 and 

18 (B) may conduct business by telephone or 

19 other electronic means. 

20 (6) NOTIFICATION OF MEETINGS.—Not later 

21 than 14 days before calling a meeting, the Chair22 person shall— 

23 (A) notify each member of the Pelican 

24 Commission of the time, date, and location of 

25 that meeting; and 
245 

•S 1766 IS 

1 (B) provide each member of the Pelican 

2 Commission with a written agenda for the 

3 meeting, including any proposals for discussion 

4 and consideration, and any appropriate back5 ground materials. 

6 (7) QUORUM.—A majority of the members of 

7 the Pelican Commission shall constitute a quorum, 

8 but a lesser number of members may hold hearings. 

9 (d) DUTIES.— 

10 (1) WORK PLAN.—The Pelican Commission 

11 shall enter into a contract with the Corps of Engi12 neers to develop, not later than 180 days after the 

13 date of enactment of this Act, and revise annually 

14 thereafter, a work plan for the design and implemen15 tation of an integrated and comprehensive program 

16 to simultaneously— 

17 (A) protect the Louisiana coastal area 

18 from future flooding and devastation caused by 

19 hurricanes; 

20 (B) restore and reconstruct critical wet21 lands; and 

22 (C) provide for navigational interests. 

23 (2) PRIORITY PROJECTS.—The work plan 

24 shall— 
246 

•S 1766 IS 

1 (A) give priority consideration to projects 

2 located in an area in which a major disaster 

3 was declared by the President on August 29, 

4 2005, in accordance with section 401 of the 

5 Robert T. Stafford Disaster Relief and Emer6 gency Assistance Act (42 U.S.C. 5170); and 

7 (B) include, at a minimum, consideration 

8 of— 

9 (i) certain hurricane protection 

10 projects appropriate enhancements, includ11 ing— 

12 (I) the project for Lake Pont13 chartrain and Vicinity, Louisiana, as 

14 generally described in the post Au15 thorization Change Notification Re16 port, Lake Pontchartrain, Louisiana, 

17 and Vicinity, Hurricane Protection 

18 Project, dated August 8, 1984; 

19 (II) the Barrier Plan, Louisiana, 

20 project, as generally described in the 

21 Report of the Chief of Engineers for 

22 Lake Pontchartrain and Vicinity, 

23 Louisiana, dated March 4, 1964, as 

24 published in House Document 231, 

25 89th Congress, First Session; 
247 

•S 1766 IS 

1 (III) the project for Morganza to 

2 the Gulf, Louisiana, as generally de3 scribed in the Report of the Chief of 

4 Engineers on Morganza, Louisiana, to 

5 the Gulf of Mexico, Mississippi River 

6 and Tributaries, dated August 23, 

7 2002, and in the Report of the Chief 

8 of Engineers on Morganza, Louisiana, 

9 to the Gulf of Mexico, Mississippi 

10 River and Tributaries–Supplemental 

11 Report, dated July 22, 2003; 

12 (IV) the project for West Bank 

13 and Vicinity, Louisiana, authorized by 

14 section 401(b) of Water Resources 

15 Development Act of 1986 (100 Stat. 

16 4111), sections 101(a)(17) and 

17 101(b)(11) of the Water Resources 

18 Development Act of 1996 (110 Stat. 

19 3665), and section 328 of the Water 

20 Resources Development Act of 1999 

21 (113 Stat. 304); 

22 (V) the project for New Orleans 

23 to Venice, Louisiana, authorized by 

24 section 203 of the Flood Control Act 

25 of 1962 (76 Stat. 1180), and ex-
248 

•S 1766 IS 

1 panded to include the LeReussittee to 

2 St. Jude, Louisiana, levees; 

3 (VI) the project for Larose to 

4 Golden Meadow, Louisiana, author5 ized by section 204 of the Flood Con6 trol Act of 1965 (79 Stat. 1077), as 

7 modified by section 325 of the Water 

8 Resources Development Act of 1999 

9 (113 Stat. 304); 

10 (VII) the project for Grand Isle, 

11 Louisiana, authorized by section 204 

12 of the Flood Control Act of 1965 (79 

13 Stat. 1077) and section 301(b)(6) of 

14 the Water Resources Development Act 

15 of 1996 (110 Stat. 3710); and 

16 (VIII) the project for Lake Pont17 chartrain North Shore Protection, au18 thorized by section 601 of Water Re19 sources Development Act of 1986 

20 (100 Stat. 4137); 

21 (ii) the Louisiana Coastal Area eco22 system restoration and storm surge protec23 tion project, as generally described in the 

24 draft Louisiana Coastwide Ecosystem Res-
249 

•S 1766 IS 

1 toration Report, dated October 2003, in2 cluding any appropriate enhancements; 

3 (iii) certain flood control projects, in4 cluding any appropriate enhancements, in5 cluding— 

6 (I) the project for Southeast 

7 Louisiana, Louisiana, authorized by 

8 section 108 of the Energy and Water 

9 Development Appropriations Act of 

10 1996, and section 533 of the Water 

11 Resources Development Act of 1996 

12 (110 Stat. 3775) as amended; 

13 (II) the project for St. Bernard 

14 Parish, Louisiana, as generally de15 scribed in the New Orleans District 

16 Report for St. Bernard Parish Flood 

17 Control, Louisiana, dated October 

18 2000; 

19 (III) the project for St. Charles 

20 Parish, Louisiana, as generally de21 scribed in the New Orleans District 

22 Report for St. Charles Parish Flood 

23 Control, Louisiana, dated November 

24 2002; 
250 

•S 1766 IS 

1 (IV) the project for St. John the 

2 Baptist Parish, Louisiana, as gen3 erally described in the New Orleans 

4 District Report for St. John the Bap5 tist, Louisiana, dated February 2003; 

6 (V) the project for Plaquemines 

7 Parish, Louisiana, as generally de8 scribed in the New Orleans District 

9 Report for Plaquemines Parish, Lou10 isiana, dated October 2001; and 

11 (VI) the project for Lake Pont12 chartrain West Shore Protection, Lou13 isiana, as generally described in the 

14 New Orleans District Report dated 

15 July 1997; and 

16 (iv) certain navigation projects, in17 cluding any appropriate enhancements, in18 cluding— 

19 (I) the project for Atchafalaya 

20 River and Bayous Chene, Boeuf and 

21 Black, Louisiana, as generally de22 scribed in a House Resolution dated 

23 September 27, 2000; 

24 (II) the project for Calcasieu 

25 River and Pass Ship Channel En-
251 

•S 1766 IS 

1 largement, Louisiana, as generally de2 scribed in the Act of December 22, 

3 1944 (commonly known as the ‘‘Flood 

4 Control Act of 1944’’) (58 Stat. 887, 

5 chapter 665), the Act of March 2, 

6 1945 (59 Stat. 18, chapter 19), and 

7 House Resolutions dated June 23, 

8 1964, October 5, 1966, October 3, 

9 1968, and December 2, 1970; 

10 (III) the project for Inner Har11 bor Navigation Canal Lock, Lou12 isiana, as generally described in the 

13 River and Harbor Act of 1956 (Public 

14 Law 84–455), Water Resources De15 velopment Act of 1986 (Public Law 

16 99–662), and Water Resources Devel17 opment Act of 1996 (Public Law 

18 104–303); 

19 (IV) the project for Lafourche 

20 (Port Fourchon); and 

21 (V) the project for Port of Iberia, 

22 Louisiana, as generally described in 

23 section 431 of Water Resources De24 velopment Act 2000 (114 Stat 2639). 

25 (3) REVIEW OF WORK PLAN.— 
252 

•S 1766 IS 

1 (A) IN GENERAL.—Upon receiving a work 

2 plan under this section, the Pelican Commission 

3 shall publish the work plan in the Federal Reg4 ister, with notice and an opportunity for public 

5 comment. 

6 (B) DURATION OF REVIEW AND COMMENT

7 PERIOD.—The period for public review and 

8 comment shall be the 30-day period beginning 

9 on the date of publication of a notice described 

10 in subparagraph (A). 

11 (4) DISPOSITION OF WORK PLAN.—Not later 

12 than 30 days after the end of the period specified in 

13 paragraph (3)(B), the Pelican Commission shall— 

14 (A) approve, disapprove, or partially ap15 prove the work plan that is the subject of the 

16 review; and 

17 (B) issue a notice of the approval, dis18 approval, or partial approval that— 

19 (i) specifies the reasons for dis20 approving any portion of the work plan; 

21 (ii) if applicable, includes rec22 ommendations for revisions to the work 

23 plan to make the plan subject to approval; 

24 and 
253 

•S 1766 IS 

1 (iii) directs and provides funding to 

2 the Corps of Engineers to implement the 

3 plan, to the maximum extent practicable. 

4 (5) DISAPPROVAL OR PARTIAL APPROVAL OF

5 WORK PLAN.—If the Pelican Commission dis6 approves or partially approves a work plan, the 

7 Commission shall submit the work plan to the Corps 

8 of Engineers for review and revision. 

9 (6) IMPLEMENTATION.—Notwithstanding any 

10 other provision of law, the Pelican Commission may 

11 implement the work plan. 

12 (7) OTHER REVIEW, ANALYSIS, AND REC13 OMMENDATION.—The Pelican Commission may re14 view, analyze, and make recommendations on such 

15 other related matters as the Pelican Commission de16 termines to be appropriate. 

17 (8) TREATMENT OF WORK PLAN PROJECTS.— 

18 Notwithstanding any other provision of law, a 

19 project implemented by the Pelican Commission in 

20 accordance with the work plan shall be deemed to 

21 comply with all applicable requirements of the Na22 tional Environmental Policy Act of 1969 (42 U.S.C. 

23 4321 et seq.) and the Federal Water Pollution Con24 trol Act (33 U.S.C. 1251 et seq.). 
254 

•S 1766 IS 

1 (9) FEDERAL SHARE.—Notwithstanding any 

2 other provision of law, the Federal share of the cost 

3 of any project carried out in accordance with the 

4 work plan shall be 100 percent. 

5 (e) POWERS.— 

6 (1) HEARINGS.— 

7 (A) IN GENERAL.—The Pelican Commis8 sion may hold such hearings, meet and act at 

9 such times and places, take such testimony, and 

10 receive such evidence as the Pelican Commis11 sion considers advisable to carry out this Act. 

12 (B) PUBLIC MEETINGS AND RELEASE OF

13 REPORTS.—The Pelican Commission shall— 

14 (i) hold public hearings and meetings 

15 to the extent appropriate; and 

16 (ii) release to the public versions of 

17 any reports prepared by the Pelican Com18 mission. 

19 (C) PUBLIC HEARINGS.—Any public hear20 ing of the Pelican Commission shall be con21 ducted in a manner consistent with the protec22 tion of information provided to or developed for 

23 or by the Commission as required by any appli24 cable statute, regulation, or Executive order. 
255 

•S 1766 IS 

1 (2) CONTRACTING.—The Pelican Commission 

2 may, to such extent and in such amounts as are 

3 available for the purpose, enter into contracts to en4 able the Pelican Commission to carry out the duties 

5 of the Pelican Commission. 

6 (3) INFORMATION FROM FEDERAL AGENCIES.— 

7 (A) IN GENERAL.—The Pelican Commis8 sion may secure directly from a Federal agency 

9 such information (including technical assist10 ance) as the Pelican Commission considers nec11 essary to carry out this Act, if the information 

12 may be disclosed under section 552 of title 5, 

13 United States Code. 

14 (B) PROVISION OF INFORMATION.—On re15 quest of the Chairperson of the Pelican Com16 mission, the head of the agency shall provide 

17 the information (or technical assistance) to the 

18 Pelican Commission. 

19 (4) POSTAL SERVICES.—The Pelican Commis20 sion— 

21 (A) may use the United States mails in the 

22 same manner and under the same conditions as 

23 other agencies of the Federal Government; and 

24 (B) for the purposes of the frank, be con25 sidered to be a commission of Congress as de-
256 

•S 1766 IS 

1 scribed in section 3215 of title 39, United 

2 States Code. 

3 (5) ADMINISTRATIVE SUPPORT SERVICES.— 

4 Upon the request of the Pelican Commission, the 

5 Administrator of General Services shall provide to 

6 the Pelican Commission, on a reimbursable basis, 

7 such administrative support services as the Pelican 

8 Commission may request. 

9 (6) PRINTING.—For purposes of costs relating 

10 to printing and binding, including the cost of per11 sonnel detailed from the Government Printing Of12 fice, the Commission shall be considered to be a 

13 committee of Congress. 

14 (7) GIFTS.—The Pelican Commission may ac15 cept, use, and dispose of gifts or donations of serv16 ices or property. 

17 (f) PELICAN COMMISSION PERSONNEL MATTERS.— 

18 (1) COMPENSATION OF MEMBERS.—A member 

19 of the Pelican Commission shall receive no addi20 tional pay, allowances, or benefits by reason of the 

21 service of the member on the Pelican Commission. 

22 (2) TRAVEL EXPENSES.—A member of the Peli23 can Commission shall be allowed travel expenses, in24 cluding per diem in lieu of subsistence, at rates au25 thorized in accordance with sections 5702 and 5703 
257 

•S 1766 IS 

1 of title 5, United States Code, while away from the 

2 home or regular place of business of the member in 

3 the performance of the duties of the Pelican Com4 mission. 

5 (3) STAFF.— 

6 (A) EXECUTIVE DIRECTOR.—The Chair7 person of the Pelican Commission may, without 

8 regard to the civil service laws (including regu9 lations), appoint and terminate an executive di10 rector to enable the Pelican Commission to 

11 carry out the duties of the Pelican Commission. 

12 (B) ADDITIONAL STAFF.—With the ap13 proval of the Pelican Commission, the executive 

14 director may appoint such additional personnel 

15 as the executive director considered to be appro16 priate to assist the Pelican Commission in car17 rying out the duties of the Pelican Commission. 

18 (C) COMPENSATION.— 

19 (i) IN GENERAL.—Except as provided 

20 in subparagraph (B), the Chairperson of 

21 the Pelican Commission may fix the com22 pensation of the executive director and 

23 other personnel without regard to the pro24 visions of chapter 51 and subchapter III of 

25 chapter 53 of title 5, United States Code, 
258 

•S 1766 IS 

1 relating to classification of positions and 

2 General Schedule pay rates. 

3 (ii) MAXIMUM RATE OF PAY.—The 

4 rate of pay for the executive director and 

5 other personnel shall not exceed the rate 

6 payable for level V of the Executive Sched7 ule under section 5316 of title 5, United 

8 States Code. 

9 (4) DETAIL OF FEDERAL GOVERNMENT EM10 PLOYEES.— 

11 (A) IN GENERAL.—Upon a request by the 

12 Chairperson of the Commission, an employee of 

13 the Federal Government may be detailed to the 

14 Pelican Commission without reimbursement. 

15 (B) CIVIL SERVICE STATUS.—The detail of 

16 the employee shall be without interruption or 

17 loss of civil service status or privilege. 

18 (5) PROCUREMENT OF TEMPORARY AND INTER19 MITTENT SERVICES.—The Chairperson of the Com20 mission may procure temporary and intermittent 

21 services in accordance with section 3109(b) of title 

22 5, United States Code, at rates for individuals that 

23 do not exceed the daily equivalent of the annual rate 

24 of basic pay prescribed for level V of the Executive 

25 Schedule under section 5316 of that title. 
259 

•S 1766 IS 

1 (6) LOCATION OF FACILITIES.— 

2 (A) IN GENERAL.—The offices of the Peli3 can Commission shall be co-located in Wash4 ington, District of Columbia, and New Orleans, 

5 Louisiana. 

6 (B) OFFICE SPACE.—The Administrator of 

7 General Services shall locate suitable office 

8 space and provide all necessary equipment and 

9 incidentals required for proper operation of the 

10 Pelican Commission in each of the locations 

11 specified in subparagraph (A). 

12 (g) NONAPPLICABILITY OF FACA.—The Federal Ad13 visory Committee Act (5 U.S.C. App.) shall not apply to 

14 the Pelican Commission. 

15 (h) FUNDING.— 

16 (1) IN GENERAL.—Notwithstanding any other 

17 provision of law, not later than 30 days after the 

18 date of enactment of this Act, out of any funds in 

19 the Treasury not otherwise appropriated, the Sec20 retary of the Treasury shall transfer to the Chair21 person of the Pelican Commission to carry out this 

22 section $40,000,000,000, to remain available until 

23 expended. 

24 (2) RECEIPT AND ACCEPTANCE.—The Chair25 person of the Pelican Commission shall be entitled 
260 

•S 1766 IS 

1 to receive, shall accept, and shall use to carry out 

2 this section the funds transferred under paragraph 

3 (1), without further appropriation. 

4 SEC. 502. PRESIDENTIAL EMERGENCY PERMITTING PROC5 ESS. 

6 (a) EMERGENCY PERMITS.— 

7 (1) IN GENERAL.—Notwithstanding any other 

8 provision of law, for the 2-year period beginning on 

9 the date of enactment of this Act, the President may 

10 issue an emergency permit for any project carried 

11 out in response to, or as part of a reconstruction ef12 fort relating to, Hurricane Katrina or a related con13 dition, as the President determines to be in the best 

14 interests of the United States. 

15 (2) APPLICATION.— 

16 (A) IN GENERAL.—To receive a permit 

17 under paragraph (1), the head of the lead agen18 cy of a project described in that paragraph shall 

19 submit to the President an application, in such 

20 a manner and containing such information as 

21 the President may require. 

22 (B) ELIGIBLE APPLICANTS.—Any State or 

23 local government, or any private entity carrying 

24 out a project described in paragraph (1), may 

25 submit an application under subparagraph (A). 
261 

•S 1766 IS 

1 (C) DETERMINATION.— 

2 (i) IN GENERAL.—The President shall 

3 approve or disapprove an application under 

4 subparagraph (A) by not later than 30 

5 days after the date on which the applica6 tion is received. 

7 (ii) FAILURE TO MAKE DETERMINA8 TION.—If the President fails to approve or 

9 disapprove an application by the deadline 

10 under clause (i), the application shall be 

11 considered to be approved. 

12 (3) EFFECT OF PERMIT.—A project that re13 ceives a permit under this section shall be considered 

14 to be in compliance with any applicable Federal law 

15 (including regulations). 

16 (4) NOTICE.—On receipt of a permit under this 

17 subsection, the head of the lead agency of a project 

18 shall provide a notice to the head of any Federal 

19 agency that administers a law or regulation applica20 ble to the project. 

21 (b) RESPONSIBILITY OF FEDERAL AGENCIES.—The 

22 head of each Federal agency shall establish, maintain, and 

23 periodically publish in the Federal Register, a record of 

24 any notice received under subsection (a)(4), including a 

25 description of the basis on which the permit was issued. 
262 

•S 1766 IS 

1 SEC. 503. FEDERAL CONTRACTING REQUIREMENT FOR RE2 CONSTRUCTION. 

3 (a) CONTRACTS FOR PROPERTY OR SERVICES.— 

4 (1) PREFERENCE FOR LOUISIANA CONTRAC5 TORS.—Notwithstanding any other provision of law 

6 and subject to paragraph (2), in entering into a con7 tract to procure property or services pursuant to the 

8 August 29, 2005, Presidential declaration of a major 

9 disaster for the State of Louisiana (FEMA-1603- 

10 DR) or in connection with assistance granted to 

11 Louisiana pursuant to the Robert T. Stafford Dis12 aster Relief and Emergency Assistance Act (42 

13 U.S.C. 5122), the head of an executive agency shall 

14 afford a preference in the source selection process to 

15 each offeror that— 

16 (A) is domiciled and properly licensed in 

17 Louisiana; and 

18 (B) employs a majority of its workforce 

19 within Louisiana. 

20 (2) LIMITATIONS.—The head of an executive 

21 agency may not, in connection with a contract de22 scribed in paragraph (1)— 

23 (A) pay more than the prevailing market 

24 price for any property or service; or 
263 

•S 1766 IS 

1 (B) obtain terms and conditions that are 

2 less favorable than prevailing market terms and 

3 conditions. 

4 (b) SPECIAL WORKFORCE REQUIREMENT FOR SERV5 ICE CONTRACTS.— 

6 (1) IN GENERAL.—Notwithstanding any other 

7 provision of law and except as provided in paragraph 

8 (2), in entering into a contract to procure services 

9 pursuant to the August 29, 2005, Presidential dec10 laration of a major disaster for the State of Lou11 isiana (FEMA-1603-DR), the head of an executive 

12 agency shall require in the source selection process 

13 that each offeror employs Louisiana workers as not 

14 less than 30 percent of the workforce that will per15 form such services. 

16 (2) WAIVER.—The head of an executive agency 

17 may waive the requirement under paragraph (1) in 

18 the case of an offeror that demonstrates to the satis19 faction of such head that— 

20 (A) an insufficient number of appropriately 

21 skilled Louisiana workers are available to per22 form the contract; and 

23 (B) the offeror has made reasonable efforts 

24 to hire Louisiana workers. 

25 (c) DEFINITIONS.—In this Act: 
264 

•S 1766 IS 

1 (1) EXECUTIVE AGENCY.—The term ‘‘executive 

2 agency’’ has the meaning given such term in section 

3 4 of the Office of Federal Procurement Policy Act 

4 (41 U.S.C. 403). 

5 (2) LOUISIANA WORKERS.—The term ‘‘Lou6 isiana workers’’ means workers who were residing in 

7 Louisiana as of August 28, 2005. 

8 SEC. 504. CONTINUATION OF WORKER PAYMENTS AND 

9 OTHER ALLOWABLE COSTS UNDER FEDERAL 

10 CONTRACTS. 

11 (a) TREATMENT OF WORKER COSTS.—Notwith12 standing any other provision of law, all costs, direct and 

13 indirect, on Federal contracts and subcontracts that are 

14 associated with employees displaced by Hurricane 

15 Katrina, including wages, salaries, and temporary housing 

16 costs, shall be considered allowable and compensable costs, 

17 and the pricing of such contracts and subcontracts shall 

18 be equitably adjusted accordingly, whether or not, due to 

19 Hurricane Katrina, such employees are able to work on 

20 such contracts or subcontracts. 

21 (b) TREATMENT OF OTHER HURRICANE KATRINA22 RELATED COSTS.—Notwithstanding any other provision 

23 of law, all additional costs, direct and indirect, on Federal 

24 contracts and subcontracts that are associated with 

25 delays, loss of efficiency, and disruption caused by Hurri-
265 

•S 1766 IS 

1 cane Katrina shall be considered allowable and compen2 sable costs, and the pricing of such contracts and sub3 contracts shall be equitably adjusted accordingly. 

4 (c) REQUIRED OFFSETS FOR INSURANCE PAY5 MENTS.—Contractors shall reimburse any costs covered 

6 under this section for which they receive insurance pay7 ments. 

8 SEC. 505. RESTORATION OF TELECOMMUNICATIONS INFRA9 STRUCTURE. 

10 (a) DEFINITIONS.—Section 102 of the Robert T. 

11 Stafford Disaster Relief and Emergency Assistance Act 

12 (42 U.S.C. 5122) is amended by adding at the end the 

13 following: 

14 ‘‘(10) TELECOMMUNICATIONS CARRIER.—The 

15 term ‘telecommunications carrier’ has the same 

16 meaning given such term in section 3 of the Commu17 nications Act of 1934 (47 U.S.C. 153) including 

18 commercial mobile radio service providers.’’. 

19 (b) ELIGIBILITY OF FEDERAL RESOURCES.—Section 

20 403(a) of the Robert T. Stafford Disaster Relief and 

21 Emergency Assistance Act (42 U.S.C. 5170b) is amended 

22 by adding at the end the following: 

23 ‘‘(5) MAINTENANCE AND RESTORATION OF

24 COMMUNICATIONS.—Utilizing Federal equipment, 

25 supplies, facilities, personnel, and other resources, 
266 

•S 1766 IS 

1 other than the extension of credit, to assist tele2 communications carriers in the maintenance and res3 toration of communications during an emergency or 

4 disaster.’’. 

5 Subtitle B—Economic Development 

6 SEC. 521. RECOVERY ASSISTANCE FOR FEDERAL AND 

7 STATE AGENCIES, BUSINESSES, INSTITU8 TIONS OF HIGHER EDUCATION, AND PUBLIC9 PRIVATE PARTNERSHIPS. 

10 (a) ESTABLISHMENT OF PROGRAM.—As soon as 

11 practicable after the date of enactment of this Act, the 

12 Secretary of Commerce (referred to in this section as the 

13 ‘‘Secretary’’) shall establish a program under which the 

14 Secretary shall provide grants to eligible entities to carry 

15 out activities relating to transition, recovery, and reloca16 tion for Federal and State agencies, businesses, institu17 tions of higher education, and public-private partnerships 

18 in the State of Louisiana that have been affected by Hur19 ricane Katrina or a related condition. 

20 (b) ELIGIBLE ENTITIES.— 

21 (1) IN GENERAL.—In carrying out the program 

22 under subsection (a), the Secretary shall— 

23 (A) establish a list of qualifications for an 

24 eligible entity under the program; and 
267 

•S 1766 IS 

1 (B) solicit applications from eligible enti2 ties, as the Secretary determines to be appro3 priate. 

4 (2) APPLICATIONS.—An eligible entity seeking 

5 a grant under this section shall submit an applica6 tion to the Secretary at such time, in such manner, 

7 and containing such information as the Secretary 

8 may reasonably require. 

9 (c) FEDERAL SHARE.—Notwithstanding any require10 ment under the Public Works and Economic Development 

11 Act of 1965 (42 U.S.C. 3121 et seq.), the Federal share 

12 of the cost of an activity under this section shall be 100 

13 percent. 

14 (d) APPROPRIATIONS.—There are authorized to be 

15 appropriated for fiscal year 2006, and are appropriated 

16 to the Secretary of Commerce, $1,000,000,000 to carry 

17 out the program under this section. Amounts appropriated 

18 under this subsection shall remain available until ex19 pended. 

20 SEC. 522. MANUFACTURING EXTENSION PARTNERSHIP 

21 PROGRAM. 

22 (a) WAIVER OF MATCHING REQUIREMENTS.— 

23 (1) IN GENERAL.—Notwithstanding section 

24 25(c) of the National Institute of Standards and 

25 Technology Act (15 U.S.C. 278k), any Regional 
268 

•S 1766 IS 

1 Center for the Transfer of Manufacturing Tech2 nology that is located in an area subject to a dec3 laration by the President of a major disaster as a re4 sult of Hurricane Katrina, shall be exempt from the 

5 matching requirement under such subsection. 

6 (2) EFFECTIVE DATE.—This subsection shall be 

7 effective during the 2-year period beginning on the 

8 date of enactment of this Act. 

9 (b) APPROPRIATION.—There are authorized to be ap10 propriated for fiscal year 2006, and are appropriated for 

11 such fiscal year, $30,000,000 for the Hollings Manufac12 turing Extension Partnership of the National Institute of 

13 Standards and Technology, to be used to restore the man14 ufacturing and supply base in Louisiana that was ad15 versely affected by Hurricane Katrina. Amounts appro16 priated under this subsection shall remain available until 

17 expended. 

18 SEC. 523. PUBLIC TELECOMMUNICATIONS FACILITIES. 

19 (a) EMERGENCY GRANTS FOR CONSTRUCTION OF

20 PUBLIC TELECOMMUNICATIONS FACILITIES.—Section 

21 392 of the Communications Act of 1934 is amended by 

22 adding at the end the following: 

23 ‘‘(j) EMERGENCY GRANTS FOR FACILITIES DAM24 AGED OR DESTROYED BY HURRICANE KATRINA.— 
269 

•S 1766 IS 

1 ‘‘(1) IN GENERAL.—There are authorized to be 

2 appropriated for fiscal year 2006, and are appro3 priated for such fiscal year, $250,000,000 for addi4 tional projects for the construction, reconstruction, 

5 or reparation of public telecommunications facilities 

6 damaged or destroyed in areas affected by Hurri7 cane Katrina. 

8 ‘‘(2) DEFINITION.—For purposes of this sub9 section, the term ‘areas affected by Hurricane 

10 Katrina’ means any area which the President has 

11 declared a major disaster under section 102 of the 

12 Robert T. Stafford Disaster Relief and Emergency 

13 Assistance Act (42 U.S.C. 5122) in connection with 

14 Hurricane Katrina.’’. 

15 (b) SUSPENSION OF REQUIREMENTS UNDER THE

16 PUBLIC TELECOMMUNICATIONS FACILITIES AND CON17 STRUCTION PROGRAM.—Section 392 of the Communica18 tions Act of 1934 (47 U.S.C.,.392), as amended by sub19 section (a), is further amended by adding at the end the 

20 following: 

21 ‘‘(k) SUSPENSION OF REQUIREMENTS.—For any 

22 grant awarded under this section to a grantee in an area 

23 which the President has declared a major disaster under 

24 section 102 of the Robert T. Stafford Disaster Relief and 

25 Emergency Assistance Act (42 U.S.C. 5122) in connection 
270 

•S 1766 IS 

1 with Hurricane Katrina, the Secretary may suspend all 

2 statutory requirements under this subtitle for purposes of 

3 assistance under this section.’’. 

4 SEC. 524. GRANTS FOR TECHNOLOGY AND ECONOMIC DE5 VELOPMENT IN AREAS AFFECTED BY HURRI6 CANE KATRINA. 

7 Subpart E of part IV of title III of the Communica8 tions Act of 1934 is amended by adding at the end the 

9 following: 

10 ‘‘SEC. 399C. GRANTS FOR TECHNOLOGY AND ECONOMIC DE11 VELOPMENT IN AREAS AFFECTED BY HURRI12 CANE KATRINA. 

13 ‘‘(a) PURPOSE.—The purpose of this section is to 

14 provide assistance to parishes within the State of Lou15 isiana affected by Hurricane Katrina in order to facilitate 

16 the economic recovery of— 

17 ‘‘(1) low and moderate income residents; and 

18 ‘‘(2) small business concerns. 

19 ‘‘(b) GRANT AUTHORIZED.—The Secretary may 

20 award grants under this section to parishes in the State 

21 of Louisiana whose applications for such grants are ap22 proved by the Secretary under this section. 

23 ‘‘(c) USE OF FUNDS.—Grants under this section may 

24 be used for activities to carry out the purposes described 

25 in this section, including— 
271 

•S 1766 IS 

1 ‘‘(1) the acquisition of more efficient first-re2 sponder mobile communications, including 

3 deployable cellular towers to be used in cases of 

4 emergency; 

5 ‘‘(2) the reconstruction and redeployment of 

6 equipment necessary to reinstate internet, wireless, 

7 broadband, and e-government services, with special 

8 priority in reinstating such services to be given to 

9 small business concerns, as defined in section 3 of 

10 the Small Business Act (15 U.S.C. 632); 

11 ‘‘(3) the construction of such public tele12 communications facilities as may be necessary to 

13 provide low cost broadband communication 

14 connectivity for low and middle income families, as 

15 such terms are defined in section 3 of the United 

16 States Housing Act of 1937 (42 U.S.C. 1437a); and 

17 ‘‘(4) the construction of a broadband dual-pur18 pose municipal wireless communication network to 

19 be used for— 

20 ‘‘(A) city-wide operations within the city of 

21 New Orleans, Louisiana; and 

22 ‘‘(B) public Internet access in 100-block 

23 area of downtown New Orleans using wireless24 fidelity (commonly known as ‘Wi-FI’) tech25 nology. 
272 

•S 1766 IS 

1 ‘‘(d) APPLICATION AND SELECTION.—A parish seek2 ing a grant under this section shall submit an application 

3 to the Secretary at such time, in such manner, and con4 taining such information as the Secretary may reasonably 

5 require. 

6 ‘‘(e) REPORTING REQUIREMENTS.—The Secretary 

7 shall require grant recipients under this section to report 

8 the uses of all amounts expended for each of the eligible 

9 activities described in subsection (c). 

10 ‘‘(f) APPROPRIATION.—There are authorized to be 

11 appropriated for fiscal year 2006, and are appropriated 

12 for such fiscal year,$19,000,000 to carry out this sec13 tion.’’. 

14 SEC. 525. RELIEF FOR CRAWFISH INDUSTRY. 

15 (a) FINDINGS.—Congress makes the following find16 ings: 

17 (1) Since September 15, 1997, there has been 

18 an antidumping duty order requiring payment of 

19 antidumping duties on imports of freshwater craw20 fish tail meat from the People’s Republic of China. 

21 (2) The United States Bureau of Customs and 

22 Border Protection is required to collect all customs 

23 duties, including antidumping duties, lawfully im24 posed on imports of merchandise entering the 

25 United States. Nevertheless, less than $30,000,000 
273 

•S 1766 IS 

1 in antidumping duties on imports of freshwater 

2 crawfish tail meat from the People’s Republic of 

3 China has been collected since 1997, while more 

4 than $285,000,000 in antidumping duties are owed 

5 but uncollected. 

6 (3) During each of the fiscal years 2002, 2003, 

7 and 2004, non-collection of lawful antidumping du8 ties has deprived the affected domestic producers of 

9 freshwater crawfish tail meat in Louisiana of ap10 proximately $46,187,768 to which they would other11 wise have been entitled under the Continued Dump12 ing and Subsidy Offset Act of 2000 (section 754 of 

13 the Tariff Act of 1930). 

14 (4) Freshwater crawfish tail meat is produced 

15 in the United States only in Louisiana and the do16 mestic product is sold almost exclusively to pur17 chasers within Louisiana. 

18 (5) The United States International Trade 

19 Commission has found that over 97 percent of the 

20 domestic industry’s sales since 2000 have been to 

21 purchasers within Louisiana, such as food stores, 

22 restaurants, and seafood markets. Since 1999, more 

23 than half of the domestic industry’s sales has been 

24 to local food stores in Louisiana. New Orleans, the 
274 

•S 1766 IS 

1 State’s largest city has accounted for a large portion 

2 of the domestic industry’s sales. 

3 (6) Hurricane Katrina has damaged or destroyed tra4 ditional markets in southern Louisiana on which the do5 mestic industry relies, creating an urgent need among 

6 such producers for immediate restitution of amounts re7 quired to be collected by the Bureau of Customs and Bor8 der Protection and distributed to affected domestic pro9 ducers of freshwater crawfish tail meat. 

10 (7) Under existing law, payments to affected 

11 domestic producers under the Continued Dumping 

12 and Subsidy Offset Act of 2000 are limited to the 

13 amount of such producers’ qualifying expenditures, 

14 and all antidumping duties collected beyond that 

15 amount are paid into the Treasury to meet the gen16 eral expenses of the Federal Government. Because 

17 the total amount of unpaid antidumping duties on 

18 freshwater crawfish tail meat exceeds the domestic 

19 industry’s qualifying expenditures by more than 

20 $200,000,000, full collection of all duties owed will 

21 provide a net benefit to United States taxpayers. 

22 (8) All relief provided to the domestic crawfish 

23 industry should be fully repaid to the Treasury 

24 under existing law upon collection of the unpaid 

25 antidumping duties. Accordingly, the relief provided 
275 

•S 1766 IS 

1 by this section does not increase the burden on 

2 United States taxpayers. The provisions of this sec3 tion ensure that the Bureau of Customs and Border 

4 Protection complies in a timely fashion with its pre5 existing legal obligations. 

6 (9) Payments owed to domestic crawfish proc7 essors have been further delayed because of a recent 

8 policy change by the Department of Commerce 

9 which delays the issuance of liquidation instructions 

10 for certain imports of freshwater crawfish tail meat. 

11 Reversal of this unwarranted policy change is re12 quired in order to provide prompt relief to the do13 mestic crawfish industry. 

14 (b)EMERGENCY RESTITUTION OF AMOUNTS OWED

15 TO AFFECTED DOMESTIC PRODUCERS OF FRESHWATER

16 CRAWFISH TAIL MEAT.— 

17 (1) IN GENERAL.—The Secretary of the Treas18 ury shall distribute, within 30 days after receiving a 

19 request therefor, a pro rata portion of the 

20 $46,187,768, to each person that was determined by 

21 the Bureau of Customs and Border Protection under 

22 the Continued Dumping and Subsidy Offset Act of 

23 2000 to be an affected domestic producer of fresh24 water crawfish tail meat during fiscal year 2004. 
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•S 1766 IS 

1 (2) AMOUNT PAYABLE.—The Secretary shall 

2 distribute to each person making a request under 

3 paragraph (1) an amount in the same proportion as 

4 such person’s share of the total distribution of fresh5 water crawfish tail meat duties under the Continued 

6 Dumping and Subsidy Offset Act of 2000 at the end 

7 of fiscal year 2004, as stated in the Continued 

8 Dumping and Subsidy Offset Act Annual Report for 

9 fiscal Year 2004 (CDSOA FY2004 Annual Report). 

10 (3) REQUEST FOR AMOUNT.—A person request11 ing an amount under this section shall be required 

12 to provide only the person’s name, address, social se13 curity number or taxpayer identification number, 

14 and a certification that— 

15 (A) the person is the same person named 

16 in the CDSOA FY2004 Annual Report and de17 termined by the Bureau of Customs and Border 

18 Protection to have been an affected domestic 

19 producer of freshwater crawfish tail meat dur20 ing fiscal year 2004; and 

21 (B) the total amount of any funds received 

22 by such person under this section shall be ex23 cluded from the amount claimed as qualifying 

24 expenditures in any subsequent certification 

25 submitted for the purpose of obtaining a pay-
277 

•S 1766 IS 

1 ment under the Continued Dumping and Sub2 sidy Offset Act of 2000. 

3 (c) INCENTIVE FOR IMPROVED ENFORCEMENT AND

4 COLLECTION OF THE ANTIDUMPING DUTY ORDER RE5 LATING TO IMPORTS OF FRESHWATER CRAWFISH TAIL

6 MEAT.—Not later than January 15 of each year, the Sec7 retary of the Treasury shall review the amount of duties 

8 collected during the preceding fiscal year pursuant to the 

9 antidumping duty order issued on September 15, 1997 

10 against imports of freshwater crawfish tail meat from the 

11 People’s Republic of China. If the Secretary determines 

12 that the total amount of antidumping duties collected pur13 suant to that order is 5 percent or less of the total amount 

14 of antidumping duties owed to the United States on liq15 uidations occurring during such preceding fiscal year on 

16 entries of merchandise subject to such order— 

17 (1) an amount equal to 15 percent of such du18 ties owed but uncollected during such preceding fis19 cal year under such order shall be transferred, on or 

20 before the last day of the current fiscal year, into 

21 the special account established under section 754(e) 

22 of the Tariff Act of 1930 with respect to such order; 

23 and 

24 (2) the amount transferred into the special ac25 count shall be treated, for purposes of section 754 
278 

•S 1766 IS 

1 of the Tariff Act of 1930, as duties assessed during 

2 the current fiscal year pursuant to such order and 

3 shall be excluded from the calculation of whether the 

4 total amount of duties collected pursuant to the 

5 order is 5 percent or less of the total amount of 

6 antidumping duties owed on liquidations occurring 

7 during the preceding fiscal year. 

8 (d) TIMELY ISSUANCE OF LIQUIDATION INSTRUC9 TIONS BY COMMERCE.—In any antidumping duty admin10 istrative review conducted under section 751 of the Tariff 

11 Act of 1930, the Department of Commerce, or such other 

12 officer of the United States acting as the administering 

13 authority under section 771(1) of such Act, shall, within 

14 30 days after receiving a request for review from an inter15 ested party (as defined in section 771(9) (C), (D), (E), 

16 (F), or (G) of such Act) issue instructions to the Bureau 

17 of Customs and Border Protection for the immediate liq18 uidation and assessment of duties with respect to entries 

19 of the subject merchandise that were made during the pe20 riod covered by the review from any foreign entity without 

21 regard to whether that entity was specifically named in 

22 the request for the administrative review. 

23 SEC. 526. NOAA WEATHER RADIO. 

24 (a) DEFINITIONS.—In this section: 
279 

•S 1766 IS 

1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the National 

3 Oceanic and Atmospheric Administration. 

4 (2) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 

5 individual’’ means a low-income individual who is a 

6 resident of Louisiana. 

7 (3) NOAA WEATHER RADIO.—The term 

8 ‘‘NOAA Weather Radio’’ means the broadcasts of 

9 continuous weather information by a nationwide net10 work of radio stations provided by the National Oce11 anic and Atmospheric Administration. 

12 (4) NOAA WEATHER RADIO RECEIVER.—The 

13 term ‘‘NOAA Weather Radio receiver’’ means a 

14 radio receiver that is capable of receiving broadcasts 

15 from NOAA Weather Radio. 

16 (b) RECEIVER PROGRAM.—The Administrator shall 

17 establish a program to provide a NOAA Weather Radio 

18 receiver at no cost or at a reduced cost to any eligible 

19 individual. 

20 (c) NOAA WEATHER RADIO EXPANDED COV21 ERAGE.—The Administrator shall expand the area that is 

22 able to receive radio broadcasts made by NOAA Weather 

23 Radio. 
280 

•S 1766 IS 

1 SEC. 527. EFFECTS OF HURRICANE KATRINA ON FISH AND 

2 WILDLIFE. 

3 (a) REPORT ON FISHERIES.—Not later than 180 

4 days after the date of enactment of this Act, the Adminis5 trator shall prepare a report on the impacts of the hurri6 cane that arrived in Louisiana on August 29, 2005, on— 

7 (1) commercial and recreational fisheries in 

8 such States; 

9 (2) shrimp fishing vessels in such States; and 

10 (3) the oyster industry in such States. 

11 (b) REPORT ON HABITAT.—Not later than 180 days 

12 after the date of enactment of this Act, the Administrator 

13 and the Secretary of the Interior shall jointly prepare a 

14 report on the impacts of the hurricane that hit Louisiana 

15 on August 29, 2005, on fish and wildlife habitat, including 

16 the habitat of migratory birds, shrimp, and oysters, in 

17 such States. 

18 (c) RESTORATION.—The Administrator and the Sec19 retary of the Interior shall carry out activities to restore 

20 fish and wildlife habitat, including the habitat of migra21 tory birds, shrimp, and oysters, in Louisiana. 

22 SEC. 528. MINORITY BUSINESS DEVELOPMENT AGENCY. 

23 (a) APPROPRIATION.—There are authorized to be ap24 propriated, and are appropriated to the Secretary of Com25 merce, $50,000,000, for minority business development 

26 assistance to Hurricane Katrina victims for the recon-
281 

•S 1766 IS 

1 struction of records, packaging for disaster loans, insur2 ance claims, and overall consultation to reestablish busi3 ness in Louisiana. Amounts appropriated under this sub4 section shall remain available until expended. 

5 (b) FEES.—In the provision of assistance with funds 

6 appropriated by this section, the Minority Business Devel7 opment Agency of the Department of Commerce shall 

8 waive fees and not require cost-sharing. 

9 SEC. 529. SOUTHEAST LOUISIANA ENTREPRENEURSHIP DE10 VELOPMENT NETWORK. 

11 (a) ESTABLISHMENT.—There is established an entre12 preneurship redevelopment program to be administered by 

13 the Economic Development Administration of the Depart14 ment of Commerce to rebuild and diversify New Orleans, 

15 Louisiana and the 10 surrounding parishes (in this sec16 tion, referred to as the ‘‘region’’). The program shall con17 sist of— 

18 (1) an entrepreneur facility; 

19 (2) a seed capital fund; and 

20 (3) a business accelerator program. 

21 (b) PURPOSES OF PROGRAM.—The program estab22 lished under subsection (a) shall be designed to— 

23 (1) allow the region to create a program to re24 cruit a high-level entrepreneurship base segmented 
282 

•S 1766 IS 

1 by area of expertise to participate in the rebirth of 

2 the region; 

3 (2) encourage existing small businesses to re4 main in the region, recruit entrepreneurs and inves5 tors to the region, accelerate the growth of the en6 trepreneurial ventures, and lead business creation 

7 marketing efforts; 

8 (3) establish business partnerships with the na9 tional small business community and attract inves10 tors in small business ventures; and 

11 (4) provide operation costs. 

12 (c) ENTREPRENEUR FACILITY.—The entrepreneur 

13 facility established pursuant to this section shall provide 

14 a physical infrastructure for incubation community needs. 

15 (c) SEED CAPITAL FUND.—The seed capital fund es16 tablished pursuant to this section shall be used to provide 

17 capital to young companies and attract venture capital. 

18 (d) BUSINESS ACCELERATOR PROGRAM.— 

19 (1) IN GENERAL.—The business accelerator 

20 program established pursuant to this section shall 

21 provide a professional team to assist companies with 

22 business development, training and education, 

23 mentorship networks, consulting services, and re24 sources for raising capital. 
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•S 1766 IS 

1 (2) TRAINING.—Training provided under the 

2 business accelerator program shall include assisting 

3 less experienced entrepreneurs with business, man4 agement, and entrepreneurial development skills. 

5 (3) OUTREACH.—The business accelerator pro6 gram shall also provide funds to attract companies 

7 and entrepreneurs to the region and provide commu8 nity outreach and social network development oppor9 tunities. 

10 (e) APPROPRIATION.—There are authorized to be ap11 propriated and are appropriated to the Economic Develop12 ment Administration $200,000,000 for fiscal years 2006 

13 through 2010 to carry out this section of which— 

14 (1) $78,000,000 shall be for the entrepreneur 

15 facility; 

16 (2) $77,000,000 shall be for the seed capital 

17 fund; and 

18 (3) $45,000,000 shall be for operations, includ19 ing business development, training and education, 

20 consultants and marketing. 

21 Funds appropriated pursuant to this section shall remain 

22 available until expended. 

23 SEC. 530. EXPORT ASSISTANCE PROGRAM. 

24 (a) IN GENERAL.—Not later than 90 days after the 

25 date of the enactment of this Act, the Secretary of Com-
284 

•S 1766 IS 

1 merce shall develop and implement an export assistance 

2 grant program for businesses located in Louisiana. 

3 (b) SCOPE OF PROGRAM.—The export assistance 

4 grant program established under this section shall be de5 signed to— 

6 (1) provide companies located in Louisiana with 

7 export-related training and development assistance; 

8 (2) provide the companies with assistance in 

9 seeking access to international markets for their 

10 products, including travel and marketing assistance; 

11 (3) focus on international market development; 

12 (4) foster a special relationship between the 

13 Foreign Commercial Service and the International 

14 Trade Administration, companies located in Lou15 isiana and State officials in that State; 

16 (5) provide for the creation of a special task 

17 force of Foreign Commercial Officers (FCO’s) within 

18 the Foreign Commercial Service to arrange market 

19 opportunities for companies based in Louisiana ; 

20 (6) increase the development of the export-re21 lated industries in Louisiana; 

22 (7) increase the number of firms shipping 

23 United States-made products to foreign markets; 

24 (8) attract new foreign capital for products 

25 made in Louisiana; and 
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•S 1766 IS 

1 (9) assist in the economic recovery of Lou2 isiana. 

3 (c) APPLICATION AND ELIGIBILITY FOR GRANT.— 

4 (1) APPLICATIONS.—Applications for a grant 

5 under this section shall be made to the Secretary of 

6 Commerce at such time, in such manner, and con7 taining such information as the Secretary shall rea8 sonably require. 

9 (2) ELIGIBILITY.—The Secretary shall award 

10 grants under this section to companies in Louisiana, 

11 giving priority to applications from companies lo12 cated in an area with respect to which the President 

13 has declared a major disaster relating to Hurricane 

14 Katrina that— 

15 (A) were engaged in the active conduct of 

16 a trade or business in such disaster area on Au17 gust 28, 2005; 

18 (B) continue to engage in, or have re19 sumed, such trade or business in such area; 

20 (C) employ more than 5 employees whose 

21 principal place of employment is in such area; 

22 and 

23 (D) seek to develop export programs with 

24 countries in South America, Central America, 

25 or the Caribbean. 
286 

•S 1766 IS 

1 (3) REPORT.—The Secretary shall require each 

2 company receiving a grant under this section to re3 port on how the grant was used and the amounts ex4 pended for each activity described in this section. 

5 (d) APPROPRIATION.—There are authorized to be ap6 propriated and are appropriated to the Secretary of Com7 merce $35,000,000 for each of the fiscal years 2006, 

8 2007, 2008, 2009, and 2010 to carry out the export as9 sistance grant program established pursuant to this sec10 tion. Funds appropriated shall remain available until ex11 pended. 

12 Subtitle C—Transportation 

13 SEC. 541. LOUISIANA DEPARTMENT OF TRANSPORTATION 

14 AND DEVELOPMENT. 

15 (a) DEFINITIONS.—In this section: 

16 (1) DEPARTMENT.—The term ‘‘Department’’ 

17 means the Louisiana Department of Transportation 

18 and Development. 

19 (2) STATE.—The term ‘‘State’’ means the State 

20 of Louisiana. 

21 (b) EVACUATION AND ENERGY SUPPLY ROUTES.— 

22 (1) ESTABLISHMENT.—As soon as practicable 

23 after the date of enactment of this Act, the Depart24 ment shall establish a program under which the De-
287 

•S 1766 IS 

1 partment shall construct, maintain, and repair evac2 uation and energy supply routes in the State. 

3 (2) INCLUSIONS.—In carrying out the program 

4 under paragraph (1), the Department shall con5 struct, maintain, and repair routes on— 

6 (A) Interstate Route 49 from Lafayette, 

7 Louisiana, to New Orleans, Louisiana; 

8 (B) Louisiana Highway 1; 

9 (C) the Houma-Terrebonne Interstate 

10 Route 10 connector; and 

11 (D) Louisiana Highway 25 through Wash12 ington Parish and St. Tammany Parish, Lou13 isiana. 

14 (3) APPROPRIATION.—There are authorized to 

15 be appropriated and are appropriated to carry out 

16 this subsection $7,000,000,000, to remain available 

17 until expended. 

18 (c) ROAD AND TRANSIT CAPACITY EXPANSION.— 

19 (1) ESTABLISHMENT.—As soon as practicable 

20 after the date of enactment of this Act, the Depart21 ment shall establish a program under which the De22 partment shall provide grants to local governments 

23 in the State that experience significant population 

24 growth, as determined by the Department, to expand 

25 road and transit capacity in the community. 
288 

•S 1766 IS 

1 (2) APPROPRIATION.—There are authorized to 

2 be appropriated and are appropriated to carry out 

3 this subsection $5,000,000,000, to remain available 

4 until expended. 

5 (d) PORT OF NEW ORLEANS RESTORATION, PROTEC6 TION, AND IMPROVEMENT.— 

7 (1) IN GENERAL.—As soon as practicable after 

8 the date of enactment of this Act, the Department 

9 shall provide a grant to the operator of the Port of 

10 New Orleans, Louisiana, to carry out activities to re11 store, protect, and improve the infrastructure of the 

12 Port of New Orleans, including activities relating 

13 to— 

14 (A) jetties; 

15 (B) bank stabilization; 

16 (C) channel clearing; 

17 (D) dredging and deepening; and 

18 (E) strengthening and expanding the facil19 ity and related equipment. 

20 (2) APPROPRIATION.—There is authorized to be 

21 appropriated and are appropriated to carry out this 

22 subsection $1,000,000,000, to remain available until 

23 expended. 

24 (e) OTHER PORT INFRASTRUCTURE RESTORATION, 

25 PROTECTION, AND IMPROVEMENT.— 
289 

•S 1766 IS 

1 (1) ESTABLISHMENT.—As soon as practicable 

2 after the date of enactment of this Act, the Depart3 ment shall establish a program under which the De4 partment shall provide grants to operators of ports 

5 in the State, other than the Port of New Orleans, 

6 that are affected by Hurricane Katrina or a related 

7 condition to restore, protect, and improve the infra8 structure of the ports, including by carrying out ac9 tivities relating to— 

10 (A) jetties; 

11 (B) bank stabilization; 

12 (C) channel clearing; 

13 (D) breakwaters; 

14 (E) dredging and deepening; and 

15 (F) strengthening and expanding the facil16 ity and related equipment. 

17 (2) APPROPRIATION.—There is authorized to be 

18 appropriated and are appropriated to carry out this 

19 subsection $1,000,000,000, to remain available until 

20 expended. 

21 (f) ADMINISTRATIVE PROVISIONS.— 

22 (1) ADMINISTRATIVE EXPENSES.—None of the 

23 funds made available under this section shall be used 

24 for administrative expenses of an activity carried out 

25 under this subtitle. 
290 

•S 1766 IS 

1 (2) FEDERAL SHARE.—Notwithstanding any 

2 other provision of law, the Federal share of the cost 

3 of an activity under this section shall be 100 per4 cent. 

5 SEC. 542. FEDERAL AVIATION ADMINISTRATION. 

6 There is authorized to be appropriated to the Federal 

7 Aviation Administration $71,800,000 for reimbursements 

8 to the Louis Armstrong New Orleans International Air9 port for anticipated revenue shortfalls due to Hurricane 

10 Katrina, which shall remain available to be expended 

11 through September 30, 2007. 

12 SEC. 543. FEDERAL HIGHWAY ADMINISTRATION. 

13 (a) EMERGENCY RELIEF PROGRAM MODIFICA14 TIONS.— 

15 (1) MAXIMUM AMOUNT.—Notwithstanding sec16 tion 125(c)(1) of title 23, United States Code, or 

17 any other provision of law, the Secretary of Trans18 portation may obligate more than $100,000,000 in 

19 a State for a fiscal year under the emergency relief 

20 program authorized by section 125 of such title, for 

21 projects for the repair or reconstruction of highways, 

22 roads, and trails in response to damage caused by 

23 Hurricane Katrina. 

24 (2) FEDERAL SHARE.—Notwithstanding section 

25 120(e) of such title or any other provision of law, 
291 

•S 1766 IS 

1 during the 3-year period beginning on the date of 

2 enactment of this Act, the Federal share of the cost 

3 of each project described in paragraph (1) shall be 

4 100 percent. 

5 (3) APPROPRIATION.—In addition to amounts 

6 otherwise available, there is appropriated, out of any 

7 funds in the Treasury not otherwise appropriated, 

8 for the emergency relief program authorized under 

9 section 125 of such title, $2,900,000,000, to remain 

10 available until expended. 

11 (4) TWIN-SPAN INTERSTATE 10 BRIDGE.—Not12 withstanding any other provision of law, of the 

13 amounts made available for the Emergency Relief 

14 Program under section 125 of title 23, United 

15 States Code, such sums as may be necessary shall 

16 be available for the replacement, to current stand17 ards, of the twin-span Interstate 10 bridge spanning 

18 Lake Pontchartrain between New Orleans, Lou19 isiana, and Slidell, Louisiana: Provided, That the re20 placement structure shall be constructed to 

21 accomodate the 20-year projected Average Daily 

22 Traffic, but shall not be less than 6 lanes wide, plus 

23 full shoulders, in accordance with the applicable de24 sign standards of the American Association of State 

25 Highway and Transportation Officials: Provided fur-
292 

•S 1766 IS 

1 ther, That the height of the structure shall be in2 creased if necessary to satisfy current hydraulic 

3 standards and navigational needs. 

4 (c) LOUISIANA DEVELOPMENT DISTRICTS.— 

5 (1) DEFINITION OF AFFECTED DISTRICT.—In 

6 this subsection, the term ‘‘affected district’’ means— 

7 (A) the Regional Planning Commission; 

8 (B) the Capital Region Planning Commis9 sion; 

10 (C) the Acadiana Regional Development 

11 District; 

12 (D) the Imperial Calcasieu Regional Plan13 ning and Development District; and 

14 (E) the South Central Planning and Devel15 opment District. 

16 (2) COMPREHENSIVE DEVELOPMENT PLANS.— 

17 As soon as practicable after the date of enactment 

18 of this Act, the head of each affected district shall 

19 establish and implement a comprehensive develop20 ment plan for the jurisdiction of the affected district 

21 in response to Hurricane Katrina and related condi22 tions. 

23 (3) APPROPRIATION.—There is authorized to be 

24 appropriated and is appropriated to the affected dis-
293 

•S 1766 IS 

1 tricts to carry out this subsection $20,000,000, to 

2 remain available until expended. 

3 (d) FUNDING DESIGNATION.—The amounts made 

4 available under this section are designated as an emer5 gency requirement pursuant to section 402 of H. Con. 

6 Res. 95 (109th Congress). 

7 SEC. 544. FEDERAL RAILROAD ADMINISTRATION. 

8 There is authorized to be appropriated to the Federal 

9 Railroad Administration $36,000,000 for reimbursements 

10 to the New Orleans Public Belt Railroad for anticipated 

11 revenue shortfalls due to Hurricane Katrina, which shall 

12 remain available through September 30, 2007. 

13 SEC. 545. FEDERAL TRANSIT ADMINISTRATION. 

14 There is authorized to be appropriated to the New 

15 Orleans Regional Transit Authority for revenues lost as 

16 a consequence of Hurricane Katrina, $190,000,000, to re17 main available until September 30, 2007. 

18 SEC. 546. MARITIME ADMINISTRATION. 

19 (a) APPROPRIATION OF FUNDS.—There is authorized 

20 to be appropriated, as authorized by the title XI of the 

21 Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et 

22 seq.), $150,000,000, for the cost of guaranteed loans for 

23 the construction, reconstruction, or reconditioning of ves24 sels at a facility in an area impacted by Hurricane 

25 Katrina. Such costs, including the cost of modifying such 
294 

•S 1766 IS 

1 loans, shall be as defined in section 502 of the Congres2 sional Budget Act of 1974 (2 U.S.C. 661a). 

3 (b) RISK FACTOR OF LOANS.—The risk factor of a 

4 loan guaranteed by amounts appropriated in subsection 

5 (a) shall be deemed to be 5 percent 

6 (c) WAIVER OF REVIEW.—An application for a loan 

7 guarantee under title XI of the Merchant Marine Act, 

8 1936 shall not be subject to the review process of the De9 partment of Transportation Credit Council. 

10 SEC. 547. CAPITAL CONSTRUCTION FUND. 

11 The Secretary of Transportation shall expedite and 

12 streamline the procedures for the withdrawal of funds 

13 from the Capital Construction Fund (CCF) and expand 

14 the qualified uses of such funds to include operating ex15 penses and repair of a vessel or purchase of a new vessel. 

16 Subtitle D—AmeriCorps Disaster 

17 Relief Corps 

18 SEC. 551. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘AmeriCorps Dis20 aster Relief Corps Act of 2005’’. 

21 SEC. 552. DEFINITIONS. 

22 In this subtitle: 

23 (1) APPROVED NATIONAL SERVICE POSITION; 

24 NATIONAL SERVICE LAWS.—The terms ‘‘approved 

25 national service position’’ and ‘‘national service 
295 

•S 1766 IS 

1 laws’’ have the meanings given the terms in section 

2 101 of the National and Community Service of 1990 

3 (42 U.S.C. 12511). 

4 (2) EMERGENCY; MAJOR DISASTER.—The terms 

5 ‘‘emergency’’ and ‘‘major disaster’’ have the mean6 ings given such terms in paragraphs (1) and (2) of 

7 section 102 of the Robert T. Stafford Disaster Relief 

8 and Emergency Assistance Act (42 U.S.C. 5122(1) 

9 and (2)). 

10 SEC. 553. AUTHORITY. 

11 The Corporation for National and Community Serv12 ice (referred to in this subtitle as the ‘‘Corporation’’) shall 

13 administer the activities authorized under this subtitle. 

14 SEC. 554. ESTABLISHMENT OF SPECIAL AMERICORPS DIS15 ASTER RELIEF CORPS. 

16 (a) ESTABLISHMENT.—There is established an 

17 AmeriCorps Disaster Relief Corps to carry out, through 

18 an AmeriCorps Disaster Relief Corps national service pro19 gram administered by the Corporation, full- or part-time 

20 service projects that provide food, clothing, shelter, and 

21 other humanitarian assistance for victims of major disas22 ters and emergencies, projects involving cleaning, repair, 

23 and reconstruction of structures, facilities, and lands lo24 cated within a disaster area resulting from a major dis-
296 

•S 1766 IS 

1 aster or emergency, and other projects arising from the 

2 consequences of major disasters and emergencies. 

3 (b) RECRUITMENT OF PARTICIPANTS AND ELIGI4 BILITY.— 

5 (1) RECRUITMENT.—The Corporation shall en6 deavor to recruit up to 10,000 eligible participants 

7 for the national service program established under 

8 subsection (a) (in addition to participants eligible for 

9 participation in a national service program under the 

10 national service laws). 

11 (2) ELIGIBILITY.— 

12 (A) COMPARABLE PROGRAM.—In this 

13 paragraph, the term ‘‘comparable program’’ 

14 means— 

15 (i) the program under subtitle C of 

16 title I of National and Community Service 

17 Act of 1990 (42 U.S.C. 12571 et seq.); 

18 (ii) the program under subtitle E of 

19 title I of the National and Community 

20 Service Act of 1990 (42 U.S.C. 12611 et 

21 seq.); and 

22 (iii) the program under title I of the 

23 Domestic Volunteer Service Act of 1973 

24 (42 U.S.C. 4951 et seq.). 
297 

•S 1766 IS 

1 (B) ELIGIBILITY.—Eligibility to partici2 pate in the national service program established 

3 under subsection (a) shall be on the same basis 

4 as for participation in an approved national 

5 service position in any comparable program. 

6 (C) RELATIONSHIP TO BENEFITS.—An in7 dividual selected as a participant in the national 

8 service program who is eligible for participation 

9 in an approved national service position in a 

10 comparable program shall be eligible for living 

11 allowances, educational awards, and other sup12 port authorized for participants in approved na13 tional service positions in that comparable pro14 gram. 

15 (c) PROJECTS.—Participants in the national service 

16 program established under subsection (a) may serve on 

17 projects that— 

18 (1) help those affected by a major disaster or 

19 emergency assess their needs; 

20 (2) assist in the construction of temporary 

21 housing for the displaced victims of a major disaster 

22 or emergency; 

23 (3) provide relocation services for victims of a 

24 major disaster or emergency, including providing 
298 

•S 1766 IS 

1 food, water and clothing distribution and housing lo2 cation services; 

3 (4) conduct outreach to local businesses, build4 ing owners, and others with applications for disaster 

5 relief and for other assistance to be provided by 

6 Federal or State government; 

7 (5) provide employment services for victims, 

8 such as identifying job training, job placement, and 

9 other opportunities; 

10 (6) conduct environmental surveys, monitoring 

11 water quality and determining the environmental im12 pact on the affected region; 

13 (7) provide teaching and administrative support 

14 functions for school systems where displaced chil15 dren have enrolled; 

16 (8) work with schools to identify and mentor 

17 students coping with the impact of a major disaster 

18 or emergency; 

19 (9) work with public officials to prepare them 

20 for future major disasters or emergencies; and 

21 (10) otherwise assist with the rebuilding of the 

22 affected region. 
299 

•S 1766 IS 

1 SEC. 555. GRANTS TO STATES, CITIES, ORGANIZATIONS; CO2 OPERATION WITH FEDERAL AGENCIES. 

3 The Corporation may use funds authorized under this 

4 subtitle, in supporting projects or activities consistent with 

5 those specified in section 554(c), to— 

6 (1) make grants to, or enter into agreements 

7 with States, subdivisions of States, or other organi8 zations to support AmeriCorps projects under sec9 tion 121 of the National and Community Service Act 

10 (42 U.S.C. 12571); 

11 (2) support the National Civilian Community 

12 Corps authorized under subtitle E of title I of the 

13 National and Community Service Act (42 U.S.C. 

14 12611 et seq.); 

15 (3) support the VISTA program under title I of 

16 the Domestic Volunteer Service Act (42 U.S.C. 4951 

17 et seq.); and 

18 (4) enter into a contract or cooperative or other 

19 agreement with another Federal agency. 

20 SEC. 556. TRANSFER OF FUNDS TO THE NATIONAL SERVICE 

21 TRUST. 

22 The Corporation shall transfer funds appropriated 

23 under this subtitle to the National Service Trust estab24 lished in section 145 of the National and Community Serv25 ice Act (42 U.S.C. 12601) as required under the Strength26 en AmeriCorps Program Act (42 U.S.C. 12605) to provide 
300 

•S 1766 IS 

1 educational awards and related assistance authorized 

2 under subtitle D of title I of the National and Community 

3 Service Act (42 U.S.C. 12601 et seq.). Subsections (b)(1) 

4 and (c)(2) of section 2 of the Strengthen AmeriCorps Pro5 gram Act (42 U.S.C. 12605) shall apply to positions ap6 proved under this subtitle and educational awards associ7 ated with such positions in the same manner as the such 

8 subsections apply to positions approved as approved na9 tional service positions for programs carried out under 

10 subtitle E of title I of the National and Community Serv11 ice Act of 1990 (42 U.S.C. 12611 et seq.) or title I of 

12 the Domestic Volunteer Service Act of 1973 (42 U.S.C. 

13 4951 et seq.), and national service educational awards as14 sociated with such positions. 

15 SEC. 557. AUTHORITY FOR THIRD-TERM BENEFITS AND 

16 EDUCATIONAL AWARD. 

17 Notwithstanding any other provision of law, a partici18 pant serving in the national service program established 

19 under section 554(a) may serve a third term of service 

20 in an approved national service position and may receive 

21 living allowances, educational awards, and other support 

22 authorized for participants in approved national service 

23 positions under the national service laws on the same basis 

24 as an individual serving in a first or second term of service 

25 in an approved national service position. For purposes of 
301 

•S 1766 IS 

1 this section, a participant serving in the national service 

2 program established under section 554(a) shall be consid3 ered to be serving in an approved national service position. 

4 SEC. 558. ADMINISTRATIVE EXPENSES. 

5 The Corporation may use not more than 2 percent 

6 of funds authorized under section 562 for the administra7 tion of this subtitle. 

8 SEC. 559. ACCEPTANCE OF DONATED SERVICES. 

9 Section 196(a)(2)(A) of the National and Community 

10 Service Act (42 U.S.C. 12651g(a)(2)(A)) is amended by 

11 striking ‘‘money or property’’ and inserting ‘‘money, serv12 ices, or property’’. 

13 SEC. 560. GRANTS NOT SUBJECT TO ANNUAL APPROPRIA14 TIONS LIMITATIONS. 

15 Notwithstanding any other provision of law, funds 

16 provided under this subtitle to administer, reimburse, or 

17 support any national service program authorized under 

18 the national service laws shall not be considered in apply19 ing any limitation on funding for such programs in annual 

20 appropriations acts. 

21 SEC. 561. AUTHORITY TO SUPPORT PROGRAMS OPERATED 

22 BY FEDERAL AGENCIES. 

23 Notwithstanding any other provision of law, the Cor24 poration may use funds authorized under this subtitle to 

25 enter into a contract or cooperative agreement with an-
302 

•S 1766 IS 

1 other Federal agency to support a national service pro2 gram carried out by that agency consistent with section 

3 121(b) of the National and Community Service Act of 

4 1990 (42 U.S.C. 12571(b)). 

5 SEC. 562. APPROPRIATION. 

6 There is authorized to be appropriated and is appro7 priated to the Corporation $75,000,000 for each of fiscal 

8 years 2006 and 2007 to carry out this subtitle. 

9 TITLE VI—HURRICANE PROTEC10 TION AND ENVIRONMENTAL 

11 RESTORATION 

12 Subtitle A—Hurricane Protection 

13 CHAPTER 1—DOMESTIC OFFSHORE 

14 ENERGY REINVESTMENT ACT OF 2005 

15 SEC. 601. SHORT TITLE. 

16 This chapter may be cited as the ‘‘Domestic Offshore 

17 Energy Reinvestment Act of 2005’’. 

18 SEC. 602. OUTER CONTINENTAL SHELF. 

19 (a) DEFINITIONS.—In this section: 

20 (1) COASTAL POLITICAL SUBDIVISION.—The 

21 term ‘‘coastal political subdivision’’ means a political 

22 subdivision of a coastal State any part of which po23 litical subdivision is within the coastal zone (as de24 fined in section 304 of the Coastal Zone Manage25 ment Act of 1972 (16 U.S.C. 1453)) of the coastal 
303 

•S 1766 IS 

1 State as of the date of enactment of this section and 

2 not more than 200 nautical miles from the geo3 graphic center of any leased tract. 

4 (2) COASTAL STATE.—The term ‘‘coastal 

5 State’’ has the meaning given the term in section 

6 304(4) of the Coastal Zone Management Act (16 

7 U.S.C. 1453(4)), except that it shall exclude any 

8 such State among the contiguous 48 States, a ma9 jority of the coastline of which was subject to leasing 

10 moratoria on January 1, 2005. 

11 (3) LEASED TRACT.—The term ‘‘leased tract’’ 

12 means a tract maintained under section 6 of the 

13 Outer Continental Shelf Lands Act (43 U.S.C. 

14 1335) or leased under section 8 of that Act (43 

15 U.S.C. 1337). 

16 (b) PAYMENTS TO ADJACENT COASTAL STATES.— 

17 (1) IN GENERAL.—Notwithstanding any other 

18 provision of law, the Secretary of the Treasury shall, 

19 subject to subsection (c), make a payment in Decem20 ber of 2005 and each December thereafter in an 

21 amount equivalent to 50 per cent of all the amounts 

22 received by the United Sates from each leased tract 

23 or portion of a leased tract lying seaward of the zone 

24 defined and governed by section 8(g) of the Outer 

25 Continental Shelf Lands Act (43 U.S.C. 1337(g)) 
304 

•S 1766 IS 

1 (or lying within that zone but to which section 8(g) 

2 does not apply), including fees, bonus bids, rents, 

3 royalties (including payments from royalties taken 

4 in-kind and sold), net profit share payments, and re5 lated interest from the immediately preceding fiscal 

6 year to each adjacent coastal State. 

7 (2) ADJACENT COASTAL STATE.—For purposes of 

8 this subsection, a State shall be considered to be an adja9 cent coastal State if the nearest point on the coastline of 

10 the State is within 200 nautical miles of a leased tract. 

11 (3) MULTIPLE STATES.—In a case in which more 

12 than 1 State is located within 200 nautical miles of any 

13 portion of a leased tract, the amount allocated to each 

14 State (within 200 nautical miles of the leased tract) shall 

15 be based upon a formula that allocates revenues inversely 

16 proportional to the distance between the nearest point on 

17 the coastline of the State and the geographic center of 

18 the leased tract. 

19 (c) ALLOCATION OF FUNDS.—35 per cent of the allo20 cable share of each State receiving funds under subsection 

21 (b) shall be allocated among and paid directly to the coast22 al political subdivisions in that State by the Secretary of 

23 the Treasury based upon the following formula: 

24 (1) 50 per cent shall be allocated based on a 

25 formula that allocates the funds based on the rel-
305 

•S 1766 IS 

1 ative distance of the coastal political subdivision for 

2 any leased tract used to calculate the allocation to 

3 that State. 

4 (2) 25 per cent shall be allocated based on the 

5 ratio that— 

6 (A) the length, in miles, of the coastline of 

7 each coastal political subdivision; bears to 

8 (B) the length, in miles, of the coastline of 

9 all coastal political subdivisions of the State. 

10 (3) 25 percent shall be allocated based on the 

11 proportion that— 

12 (A) the coastal population of the coastal 

13 political subdivision; bears to 

14 (B) the coastal population of all coastal po15 litical subdivisions of the State. 

16 (d) USE OF FUNDS.—A coastal State, and a coastal 

17 political subdivision, shall use any amount paid under this 

18 section (including any amounts deposited into a trust fund 

19 administered by the State or coastal political subdivision 

20 consistent with this subsection), only for 1 or more of the 

21 following purposes: 

22 (1) For the conservation, protection, or restora23 tion of coastal areas including wetlands. 
306 

•S 1766 IS 

1 (2) To mitigate damage to natural resources 

2 and for the protection of fish and wildlife in the 

3 coastal zone. 

4 (3) To mitigate the impact of outer Continental 

5 Shelf activity by providing onshore infrastructure or 

6 public service. 

7 (4) Hurricane protection. 

8 (5) Storm damage mitigation and flood control. 

9 (6) Marine and coastal subsidence. 

10 (7) Coastal and riverine erosion. 

11 (8) Coastal and wetlands conservation and 

12 management. 

13 (9) Protection of resources from natural disas14 ters. 

15 (10) Research, development, testing, and eval16 uation of coastal restoration (including ecosystems) 

17 techniques and technology. 

18 (11) Securing critical outer Continental Shelf 

19 energy infrastructure. 

20 (e) USE FOR CERTAIN PAYMENTS.—Subject to sub21 section (d), a coastal State or coastal political subdivision 

22 may use funds provided to that State or coastal political 

23 subdivision under this section for any payment that is eli24 gible to be made with funds provided to States under sec25 tion 35 of the Mineral Leasing Act (30 U.S.C. 191). 
307 

•S 1766 IS 

1 CHAPTER 2—OFFSHORE FAIRNESS ACT 

2 OF 2005 

3 SEC. 611. SHORT TITLE. 

4 This chapter may be cited as the ‘‘Offshore Fairness 

5 Act of 2005’’. 

6 SEC. 612. PURPOSES. 

7 The purposes of this chapter are— 

8 (1) to provide equity to Louisiana with respect 

9 to the seaward boundaries of the States in the Gulf 

10 of Mexico by extending the seaward boundaries from 

11 3 geographical miles to 3 marine leagues if the State 

12 meets certain conditions not later than 5 years after 

13 the date of enactment of this Act; 

14 (2) to convey to Louisiana the interest of the 

15 United States in the submerged land of the outer 

16 Continental Shelf that is located in the extended sea17 ward boundaries of the States; 

18 (3) to provide that any mineral leases, ease19 ments, rights-of-use, and rights-of-way issued by the 

20 Secretary of the Interior with respect to the sub21 merged land to be conveyed shall remain in full force 

22 and effect; and 

23 (4) in conveying the submerged land, to ensure 

24 that the rights of lessees, operators, and holders of 
308 

•S 1766 IS 

1 easements, rights-of-use, and rights-of-way on the 

2 submerged land are protected. 

3 SEC. 613. SEAWARD BOUNDARY EXTENSION. 

4 (a) IN GENERAL.—Title II of the Submerged Lands 

5 Act (43 U.S.C. 1311 et seq.) is amended— 

6 (1) by redesignating section 11 as section 12; 

7 and 

8 (2) by inserting after section 10 the following: 

9 ‘‘SEC. 11. EXTENSION OF SEAWARD BOUNDARIES OF THE 

10 STATE OF LOUISIANA. 

11 ‘‘(a) DEFINITIONS.—In this section: 

12 ‘‘(1) EXISTING INTEREST.—The term ‘existing 

13 interest’ means any lease, easement, right-of-use, or 

14 right-of-way on, or for any natural resource or min15 erals underlying, the expanded submerged land that 

16 is in existence on the date of the conveyance of the 

17 expanded submerged land to the State under sub18 section (b)(1). 

19 ‘‘(2) EXPANDED SEAWARD BOUNDARY.—The 

20 term ‘expanded seaward boundary’ means the sea21 ward boundary of the State that is 3 marine leagues 

22 seaward of the coast line of the State as of the day 

23 before the date of enactment of this section. 

24 ‘‘(3) EXPANDED SUBMERGED LAND.—The term 

25 ‘expanded submerged land’ means the area of the 
309 

•S 1766 IS 

1 outer Continental Shelf that is located between 3 

2 geographical miles and 3 marine leagues seaward of 

3 the coast line of the State as of the day before the 

4 date of enactment of this section. 

5 ‘‘(4) INTEREST OWNER.—The term ‘interest 

6 owner’ means any person that owns or holds an ex7 isting interest in the expanded submerged land or 

8 portion of an existing interest in the expanded sub9 merged land. 

10 ‘‘(5) SECRETARY.—The term ‘Secretary’ means 

11 the Secretary of the Interior. 

12 ‘‘(6) STATE.—The term ‘State’ means State of 

13 Louisiana. 

14 ‘‘(b) CONVEYANCE OF EXPANDED SUBMERGED

15 LAND.— 

16 ‘‘(1) IN GENERAL.—If a State demonstrates to 

17 the satisfaction of the Secretary that the conditions 

18 described in paragraph (2) will be met, the Secretary 

19 shall, subject to valid existing rights and subsection 

20 (c), convey to the State the interest of the United 

21 States in the expanded submerged land of the State. 

22 ‘‘(2) CONDITIONS.—A conveyance under para23 graph (1) shall be subject to the condition that— 
310 

•S 1766 IS 

1 ‘‘(A) on conveyance of the interest of the 

2 United States in the expanded submerged land 

3 to the State under paragraph (1)— 

4 ‘‘(i) the Governor of the State (or a 

5 delegate of the Governor) shall exercise the 

6 powers and duties of the Secretary under 

7 the terms of any existing interest, subject 

8 to the requirement that the State and the 

9 officers of the State may not exercise the 

10 powers to impose any burden or require11 ment on any interest owner that is more 

12 onerous or strict than the burdens or re13 quirements imposed under applicable Fed14 eral law (including regulations) on owners 

15 or holders of the same type of lease, ease16 ment, right-of-use, or right-of-way on the 

17 outer Continental Shelf seaward of the ex18 panded submerged land; and 

19 ‘‘(ii) the State shall not impose any 

20 administrative or judicial penalty or sanc21 tion on any interest owner that is more se22 vere than the penalty or sanction under 

23 Federal law (including regulations) appli24 cable to owners or holders of leases, ease25 ments, rights-of-use, or rights-of-way on 
311 

•S 1766 IS 

1 the outer Continental Shelf seaward of the 

2 expanded submerged lands for the same 

3 act, omission, or violation; 

4 ‘‘(B) not later than 5 years after the date 

5 of enactment of this section— 

6 ‘‘(i) the State shall enact laws or pro7 mulgate regulations with respect to the en8 vironmental protection, safety, and oper9 ations of any platform pipeline in existence 

10 on the date of conveyance to the State 

11 under paragraph (1) that is affixed to or 

12 above the expanded submerged land that 

13 impose the same requirements as Federal 

14 law (including regulations) applicable to a 

15 platform pipeline on the outer Continental 

16 Shelf seaward of the expanded submerged 

17 land; and 

18 ‘‘(ii) the State shall enact laws or pro19 mulgate regulations for determining the 

20 value of oil, gas, or other mineral produc21 tion from existing interests for royalty pur22 poses that establish the same requirements 

23 as the requirements under Federal law (in24 cluding regulations) applicable to Federal 

25 leases for the same minerals on the outer 
312 

•S 1766 IS 

1 Continental Shelf seaward of the expanded 

2 submerged land; and 

3 ‘‘(C) the State laws and regulations en4 acted or promulgated under subparagraph (B) 

5 shall provide that if Federal law (including reg6 ulations) applicable to leases, easements, rights7 of-use, or rights-of-way on the outer Conti8 nental Shelf seaward of the expanded sub9 merged land are modified after the date on 

10 which the State laws and regulations are en11 acted or promulgated, the State laws and regu12 lations applicable to existing interests will be 

13 modified to reflect the change in Federal laws 

14 (including regulations). 

15 ‘‘(c) EXCEPTIONS.— 

16 ‘‘(1) MINERAL LEASE OR UNIT DIVIDED.— 

17 ‘‘(A) IN GENERAL.—If any existing Fed18 eral oil and gas or other mineral lease or unit 

19 would be divided by the expanded seaward 

20 boundary of a State, the interest of the United 

21 States in the leased minerals underlying the 

22 portion of the lease or unit that lies within the 

23 expanded submerged boundary shall not be con24 sidered to be conveyed to the State until the 
313 

•S 1766 IS 

1 date on which the lease or unit expires or is re2 linquished by the United States. 

3 ‘‘(B) APPLICABILITY FOR OTHER PUR4 POSES.—Notwithstanding subparagraph (A), 

5 the expanded seaward boundary of a State shall 

6 be the seaward boundary of the State for all 

7 other purposes, including the distribution of 

8 revenues under section 8(g)(2) of the Outer 

9 Continental Shelf Lands Act (43 U.S.C. 

10 1337(g)(2)). 

11 ‘‘(2) LAWS AND REGULATIONS NOT SUFFI12 CIENT.—If the Secretary determines that any law or 

13 regulation enacted or promulgated by a State under 

14 subparagraph (B) of subsection (b)(2) does not meet 

15 the requirements of that subparagraph, the Sec16 retary shall not convey the expanded submerged land 

17 to the State. 

18 ‘‘(d) INTEREST ISSUED OR GRANTED BY THE

19 STATE.—This section does not apply to any interest in 

20 the expanded submerged land that a State issues or grants 

21 after the date of conveyance of the expanded submerged 

22 land to the State under subsection (b)(1). 

23 ‘‘(e) LIABILITY.— 

24 ‘‘(1) IN GENERAL.—By accepting conveyance of 

25 the expanded submerged land, the State agrees to 
314 

•S 1766 IS 

1 indemnify the United States for any liability to any 

2 interest owner for the taking of any property inter3 est or breach of contract from— 

4 ‘‘(A) the conveyance of the expanded sub5 merged land to the State; or 

6 ‘‘(B) the State’s administration of any ex7 isting interest under subsection (b)(2)(A)(i). 

8 ‘‘(2) DEDUCTION FROM OIL AND GAS LEASING

9 REVENUES.—The Secretary may deduct from the 

10 amounts otherwise payable to the State under sec11 tion 8(g)(2) of the Outer Continental Shelf Lands 

12 Act (43 U.S.C. 1337(g)(2)) the amount of any final 

13 nonappealable judgment for a taking or breach of 

14 contract described in paragraph (1).’’. 

15 (b) CONFORMING AMENDMENT.—Section 2(b) of the 

16 Submerged Lands Act (43 U.S.C. 1301(b)) is amended 

17 by striking ‘‘section 4 hereof’’ and inserting ‘‘ 4 or 11’’. 

18 Subtitle B—Environmental Protec19 tion and Wetlands Restoration 

20 CHAPTER 1—LOUISIANA RESTORATION 

21 STAMP 

22 SEC. 621. SHORT TITLE. 

23 This chapter may be cited as the ‘‘Louisiana Restora24 tion Stamp Act of 2005’’. 
315 

•S 1766 IS 

1 SEC. 622. RESTORATION PROGRAM. 

2 (a) ESTABLISHMENT OF FUND.—As soon as prac3 ticable after the date of enactment of this Act, the Sec4 retary of the Treasury shall establish a fund, to be known 

5 as the ‘‘Louisiana Restoration Stamp Fund’’, for use in 

6 accordance with this section. 

7 (b) LOUISIANA RESTORATION STAMP.— 

8 (1) DESIGN AND PRODUCTION.—As soon as 

9 practicable after the date of enactment of this Act, 

10 the Postmaster General, in coordination with the 

11 Secretary of the Interior (referred to in this section 

12 as the ‘‘Secretary’’) shall design and produce a 

13 stamp, to be known as the ‘‘Louisiana Restoration 

14 Stamp’’. 

15 (2) DISTRIBUTION.—The Postmaster General 

16 shall offer for sale the Louisiana Restoration Stamp 

17 at an appropriate price, as determined by the Post18 master General, at— 

19 (A) each first-class post office and second20 class post office; and 

21 (B) any other facility or location, as the 

22 Postmaster General or the Secretary determines 

23 to be appropriate. 

24 (3) DEPOSIT OF PROCEEDS.—The Postmaster 

25 General shall deposit the proceeds of any sale under 
316 

•S 1766 IS 

1 paragraph (2) into the Louisiana Restoration Stamp 

2 Fund. 

3 (c) USE OF FUNDS.— 

4 (1) DISTRIBUTION.—Not later than October 1, 

5 2006, and annually thereafter, the Secretary of the 

6 Treasury shall distribute to the Secretary amounts 

7 in the Louisiana Restoration Stamp Fund, for use 

8 in accordance with paragraph (2). 

9 (2) RESTORATION ACTIVITIES.—The Secretary 

10 shall use amounts received under paragraph (1) to 

11 carry out restoration activities in the State of Lou12 isiana in areas affected by Hurricane Katrina or a 

13 related condition, including— 

14 (A) the acquisition of wetland habitat; and 

15 (B) coastal restoration activities. 

16 CHAPTER 2—LAKE PONTCHARTRAIN 

17 BASIN RESTORATION 

18 SEC. 631. REDESIGNATION AND EXTENSION OF PROGRAM 

19 AUTHORIZATION. 

20 Title I of the Federal Water Pollution Control Act 

21 is amended— 

22 (1) in subsection (f) of the first section 121 (33 

23 U.S.C. 1273(f)), by striking paragraph (1) and in24 serting the following: 
317 

•S 1766 IS 

1 ‘‘(1) IN GENERAL.—There are authorized to be 

2 appropriated to carry out this section, to remain 

3 available until expended— 

4 ‘‘(A) $20,000,000 for each of fiscal years 

5 2001 through 2005; and 

6 ‘‘(B) $100,000,000 for each of fiscal years 

7 2006 through 2015.’’; and 

8 (2) by redesignating the second section 121 (33 

9 U.S.C. 1274) as section 122. 

10 CHAPTER 3—FUNDING 

11 SEC. 641. ENVIRONMENTAL PROTECTION AGENCY. 

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law, out of any funds in the Treasury not otherwise 

14 appropriated, the Secretary of the Treasury shall transfer 

15 to the Administrator of the Environmental Protection 

16 Agency to repair damage caused by Hurricane Katrina or 

17 a related condition in the State of Louisiana, to remain 

18 available until expended— 

19 (1) $10,000,000 for science and technology, in20 cluding research and development activities, regard21 less of the eligibility of any activity for assistance 

22 under the Robert T. Stafford Disaster Relief and 

23 Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

24 (2) $1,000,000,000 for environmental programs 

25 and infrastructure assistance, including capitaliza-
318 

•S 1766 IS 

1 tion grants for State revolving funds and perform2 ance partnership grants, regardless of the eligibility 

3 of any activity for assistance under the Robert T. 

4 Stafford Disaster Relief and Emergency Assistance 

5 Act (42 U.S.C. 5121 et seq.); 

6 (3) $500,000,000 to make grants to State and 

7 local governments for temporary emergency meas8 ures conducted in response to the release or threat9 ened release of a hazardous substance as a result of 

10 Hurricane Katrina or a related condition; 

11 (4) $750,000,000 to make technical assistance 

12 grants to carry out water, drinking water, and air 

13 sampling, regardless of the eligibility of any activity 

14 for assistance under the Robert T. Stafford Disaster 

15 Relief and Emergency Assistance Act (42 U.S.C. 

16 5121 et seq.); 

17 (5) $750,000,000 for activities relating to the 

18 reoccupation of residences and commercial buildings, 

19 including cleanup of mold and mildew; and 

20 (6) $35,000,000 for activities relating to emer21 gency situations under section 1442(b) of the Safe 

22 Drinking Water Act (42 U.S.C. 300j–1(b)). 

23 (b) RECEIPT AND ACCEPTANCE.—The Administrator 

24 shall be entitled to receive, shall accept, and shall use to 
319 

•S 1766 IS 

1 carry out this section the funds transferred under sub2 section (a), without further appropriation. 

3 SEC. 642. LOUISIANA DEPARTMENT OF ENVIRONMENTAL 

4 QUALITY. 

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, out of any funds in the Treasury not otherwise 

7 appropriated, the Secretary of the Treasury shall transfer 

8 to the Administrator of the Environmental Protection 

9 Agency, to make a direct, lump-sum payment to the Direc10 tor of the Louisiana Department of Environmental Qual11 ity for activities in areas affected by Hurricane Katrina 

12 or a related condition in the State of Louisiana, to remain 

13 available until expended— 

14 (1) $1,000,000,000 for the removal of waste 

15 from construction and demolition activities, vegeta16 tion, debris, vehicles, tires, and boats; 

17 (2) $2,000,000,000 for the removal of haz18 ardous wastes and assessment and disposal of haz19 ardous waste; 

20 (3) $3,000,000,000 for the restoration of waste21 water treatment infrastructure systems; 

22 (4) $1,000,000 for repair, reconstruction, and 

23 improvement of drinking water systems; and 

24 (5) $100,000,000 for assessment and disposal 

25 of underground storage tanks. 
320 

•S 1766 IS 

1 (b) RECEIPT AND ACCEPTANCE.—The Administrator 

2 shall be entitled to receive, shall accept, and shall use to 

3 carry out this section the funds transferred under sub4 section (a), without further appropriation. 

5 CHAPTER 4—ENVIRONMENTAL 

6 REGULATIONS 

7 SEC. 651. NOTICE TO CONGRESS OF PRESIDENTIAL WAIV8 ERS. 

9 (a) DEFINITION OF APPROPRIATE COMMITTEES OF

10 CONGRESS.—In this section, the term ‘‘appropriate com11 mittees of Congress’’ includes any committee of Congress 

12 the jurisdiction of which is affected by a waiver or modi13 fication provided under section 502. 

14 (b) INITIAL NOTICE.—Not later than 14 days after 

15 the date of enactment of this Act, the President shall sub16 mit to the appropriate committees of Congress an initial 

17 notice of any waiver or modification provided under sec18 tion 502 during the period beginning on August 26, 2005, 

19 and ending on the date on which the notice is submitted, 

20 including a justification of the waiver or modification. 

21 (c) SUBSEQUENT NOTIFICATIONS.—Not later than 

22 14 days after the date on which the President submits 

23 the initial notice under subsection (b), and every 14 days 

24 thereafter, the President shall submit to the appropriate 

25 committees of Congress a notice of any waiver or modifica-
321 

•S 1766 IS 

1 tion provided by the President under section 502 during 

2 the preceding 14 days, including a justification of the 

3 waiver or modification. 

4 SEC. 652. AUTHORITY TO FACILITATE RECONSTRUCTION. 

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, in any area in which a major disaster relating 

7 to Hurricane Katrina was declared by the President on 

8 August 27, 2005, in accordance with section 401 of the 

9 Robert T. Stafford Disaster Relief and Emergency Assist10 ance Act (42 U.S.C. 5170)— 

11 (1) no expiration of the authority of the Admin12 istrator of the Environmental Protection Agency to 

13 conduct any response action or remediation in ac14 cordance with the Comprehensive Environmental Re15 sponse, Compensation, and Liability Act of 1980 (42 

16 U.S.C. 9601 et seq.) shall apply; and 

17 (2) section 502 shall apply to— 

18 (A) the authority of the Administrator of 

19 the Environmental Protection Agency and the 

20 Secretary of Agriculture, and requirements, 

21 under the Federal Water Pollution Control Act 

22 (33 U.S.C. 1251 et seq.) and the Federal Insec23 ticide, Fungicide, and Rodenticide Act (7 

24 U.S.C. 136 et seq.), respectively, as that au25 thority or those requirements relate to the ap-
322 

•S 1766 IS 

1 plication of pesticides in such an area to control 

2 the mosquito population and reduce the spread 

3 of vector-borne illnesses; and 

4 (B) the authority of the Secretary of Agri5 culture and the Secretary of the Interior under 

6 laws administered by each of those Secretaries 

7 relating to timber production in such an area 

8 to— 

9 (i) expedite the process of salvaging 

10 timber in the area; and 

11 (ii) ensure a secure timber supply for 

12 the pulp and paper industry. 

13 (b) STATEMENTS AND ANALYSES.—Notwithstanding 

14 any other provision of law, no requirement for the comple15 tion of a statement or analysis under any law (including 

16 a regulation) administered by the Council on Environ17 mental Quality shall apply to any project or activity relat18 ing to the recovery, reconstruction, or repair in any area 

19 described in subsection (a) in response to a major disaster 

20 described in that subsection. 

21 (c) ZONING REGULATIONS AND PROPERTY

22 RIGHTS.—Notwithstanding any other provision of law, no 

23 provision of Federal, State, or local law (including a zon24 ing regulation or other regulation) modified or applied 

25 with respect to a major disaster described in subsection 
323 

•S 1766 IS 

1 (a) shall negate or otherwise affect the private property 

2 ownership rights of any individual or entity that, on or 

3 after August 29, 2005, owns property in an area described 

4 in subsection (a). 

5 CHAPTER 5—HISTORIC PRESERVATION 

6 FUND 

7 SEC. 661. HISTORIC PRESERVATION FUND. 

8 (a) DEFINITIONS.—In this section: 

9 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti10 ty’’ means any entity in a State affected by the dec11 laration of a major disaster in accordance with sec12 tion 401 of the Robert T. Stafford Disaster Relief 

13 and Emergency Assistance Act (42 U.S.C. 5170). 

14 (2) FUND.—The term ‘‘Fund’’ means the His15 toric Preservation Fund. 

16 (3) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of the Interior. 

18 (b) CONSERVATION PROJECT GRANTS.— 

19 (1) GRANTS.—The Secretary shall provide 

20 grants from amounts in the Fund to eligible entities 

21 in areas affected by Hurricane Katrina or a related 

22 condition, as determined by the Secretary, to carry 

23 out conservation projects. 
324 

•S 1766 IS 

1 (2) USE OF FUNDS.—An eligible entity that re2 ceives a grant under this subsection shall use funds 

3 for conservation projects relating to— 

4 (A) nationally significant intellectual and 

5 cultural artifacts, including collections, docu6 ments, sculpture, and works of art; and 

7 (B) nationally significant historic struc8 tures and sites, including historic districts, 

9 buildings, and objects. 

10 (3) ADMINISTRATION.— 

11 (A) IN GENERAL.—Grants provided under 

12 this subsection shall be administered by the 

13 Secretary, in collaboration with the Louisiana 

14 State Historic Preservation Office and the Na15 tional Center of Preservation Technology and 

16 Training at Natchitoches, Louisiana. 

17 (B) FEDERAL SHARE.—The Federal share 

18 of the cost of a project under this subsection 

19 shall be not less than 75 percent. 

20 (C) NON-FEDERAL SHARE.—The non-Fed21 eral share of the cost of a project under this 

22 subsection— 

23 (i) shall be not more than 25 percent; 

24 and 
325 

•S 1766 IS 

1 (ii) may be provided in cash or in 

2 kind. 

3 (D) LIMITATIONS.— 

4 (i) PERIOD OF AVAILABILITY.—A 

5 grant under this subsection shall remain 

6 available for not longer than 3 years after 

7 the date on which the grant is provided. 

8 (ii) OTHER LIMITATIONS.—The Sec9 retary may establish such other limitations 

10 with respect to a grant under this sub11 section as the Secretary determines to be 

12 appropriate. 

13 (4) APPROPRIATIONS.— 

14 (A) IN GENERAL.—Notwithstanding any 

15 other provision of law, out of any funds in the 

16 Treasury not otherwise appropriated, the Sec17 retary of the Treasury shall transfer to the Sec18 retary to carry out this subsection 

19 $150,000,000, to remain available until ex20 pended. 

21 (B) RECEIPT AND ACCEPTANCE.—The 

22 Secretary shall be entitled to receive, shall ac23 cept, and shall use to carry out this section the 

24 funds transferred under subparagraph (A), 

25 without further appropriation. 
326 

•S 1766 IS 

1 (c) PRESERVATION PROJECTS.— 

2 (1) IN GENERAL.—The Secretary shall provide 

3 grants from amounts in the Fund to eligible entities 

4 in areas affected by Hurricane Katrina or a related 

5 condition, as determined by the Secretary, to carry 

6 out preservation projects. 

7 (2) USE OF FUNDS.—An eligible entity that re8 ceives a grant under this subsection shall use funds 

9 for preservation projects— 

10 (A) relating to the mitigation, stabilization, 

11 rehabilitation, and restoration of— 

12 (i) national historic landmarks af13 fected by Hurricane Katrina or a related 

14 condition, as determined by the Secretary; 

15 and 

16 (ii) other nationally significant cul17 tural properties affected by Hurricane 

18 Katrina or a related condition, as deter19 mined by the Secretary; or 

20 (B) to provide conservation treatment to 

21 nationally significant collections. 

22 (3) ADMINISTRATION.— 

23 (A) IN GENERAL.—Grants provided under 

24 this subsection shall be administered by the 

25 Secretary, acting through the Director of the 
327 

•S 1766 IS 

1 National Center for Preservation Technology 

2 and Training of the National Park Service, in 

3 accordance with the Standards for the Treat4 ment of Historic Properties of the Department 

5 of the Interior. 

6 (B) FEDERAL SHARE.—The Federal share 

7 of the cost of a project under this subsection 

8 shall be 100 percent. 

9 (4) APPROPRIATIONS.— 

10 (A) IN GENERAL.—Notwithstanding any 

11 other provision of law, out of any funds in the 

12 Treasury not otherwise appropriated, the Sec13 retary of the Treasury shall transfer to the Sec14 retary to carry out this subsection $30,000,000, 

15 to remain available until expended. 

16 (B) RECEIPT AND ACCEPTANCE.—The 

17 Secretary shall be entitled to receive, shall ac18 cept, and shall use to carry out this section the 

19 funds transferred under subparagraph (A), 

20 without further appropriation. 

21 (d) TECHNICAL ASSISTANCE AND TRAINING.— 

22 (1) IN GENERAL.—The Secretary, acting 

23 through the Director of the National Park Service, 

24 shall establish a program to provide training and 

25 technical assistance to entities in the States of Ala-
328 

•S 1766 IS 

1 bama, Louisiana, and Mississippi to rehabilitate and 

2 restore areas affected by Hurricane Katrina or re3 lated conditions, regardless of the eligibility of an 

4 entity to receive a grant under this section. 

5 (2) ADMINISTRATION.— 

6 (A) IN GENERAL.—The program under 

7 this subsection shall be administered by the 

8 Secretary, acting through the Director of the 

9 National Park Service, in coordination with the 

10 Director of the National Center for Preserva11 tion Technology and Training of the National 

12 Park Service. 

13 (B) PROVISION OF INFORMATION.—The 

14 Secretary shall provide any information pro15 vided to eligible entities under this subsection 

16 to— 

17 (i) the Technical Preservation Services 

18 of the National Park Service; 

19 (ii) State historic preservation offices; 

20 (iii) certified local governments; 

21 (iv) federally recognized Indian tribes; 

22 and 

23 (v) affected local preservation organi24 zations. 

25 (3) APPROPRIATIONS.— 
329 

•S 1766 IS 

1 (A) IN GENERAL.—Notwithstanding any 

2 other provision of law, out of any funds in the 

3 Treasury not otherwise appropriated, the Sec4 retary of the Treasury shall transfer to the Sec5 retary to carry out this subsection $8,000,000, 

6 to remain available until expended, of which— 

7 (i) not less than $2,000,000 shall be 

8 made available to the Technical Preserva9 tion Services of the National Park Service; 

10 (ii) not less than $2,000,000 shall be 

11 made available to the National Park Serv12 ice Federal Preservation Institute; 

13 (iii) not less than $1,000,000 shall be 

14 made available to the National Cemetery 

15 Preservation Initiative; and 

16 (iv) not less than $3,000,000 shall be 

17 made available to the National Center for 

18 Preservation Technology and Training of 

19 the National Park Service. 

20 (B) RECEIPT AND ACCEPTANCE.—The 

21 Secretary shall be entitled to receive, shall ac22 cept, and shall use to carry out this section the 

23 funds transferred under subparagraph (A), 

24 without further appropriation. 
330 

•S 1766 IS 

1 (e) NATIONAL TRUST FOR HISTORIC PRESERVA2 TION.— 

3 (1) IN GENERAL.—The Secretary shall provide 

4 grants to eligible entities from amounts in the Na5 tional Trust for Historic Preservation (referred to in 

6 this subsection as the ‘‘Trust’’) to carry out preser7 vation planning and technical assistance activities in 

8 areas affected by Hurricane Katrina or a related 

9 condition 

10 (2) PRIORITY.—In providing grants under this 

11 subsection, the Secretary shall give priority to eligi12 ble entities located in towns with a population of less 

13 than 50,000. 

14 (3) USE OF FUNDS.—An eligible entity shall 

15 use a grant received under this subsection to provide 

16 preservation services to communities in the region of 

17 the eligible entity. 

18 (4) APPROPRIATIONS.— 

19 (A) IN GENERAL.—Notwithstanding any 

20 other provision of law, out of any funds in the 

21 Treasury not otherwise appropriated, the Sec22 retary of the Treasury shall transfer to the Sec23 retary to carry out this subsection $20,000,000, 

24 to remain available until expended. 
331 

•S 1766 IS 

1 (B) RECEIPT AND ACCEPTANCE.—The 

2 Secretary shall be entitled to receive, shall ac3 cept, and shall use to carry out this section the 

4 funds transferred under subparagraph (A), 

5 without further appropriation. 

6 (C) DIVISION OF AMOUNTS.—Amounts ap7 propriated under subparagraph (A) may be di8 vided between the Preservation Services Fund, 

9 the National Preservation Loan Fund, and the 

10 National Main Street Center of the Trust to 

11 provide consulting services to communities, as 

12 the Director of the Trust determines to be ap13 propriate. 

14 (f) ADMINISTRATION.— 

15 (1) IN GENERAL.—A project funded under this 

16 section shall be exempt from any requirement under 

17 Federal law relating to— 

18 (A) full-time employment; or 

19 (B) limitations on travel expenses. 

20 (2) ADMINISTRATIVE COSTS.—An entity that 

21 receives a grant under this section shall use not 

22 more than 5 percent of the amount provided to pay 

23 administrative costs. 

24 (3) EXPEDITED CONTRACTS.—The Secretary 

25 shall expedite the execution of any contract relating 
332 

•S 1766 IS 

1 to a project under this section, to the maximum ex2 tent practicable. 

3 CHAPTER 6—MITIGATION MEASURES 

4 SEC. 671. MITIGATION MEASURES. 

5 (a) APPROPRIATIONS.—Notwithstanding section 404 

6 of the Robert T. Stafford Disaster Relief and Emergency 

7 Assistance Act (42 U.S.C. 5170c), or any other provision 

8 of law, the President shall make available to the Governor 

9 of the State of Louisiana an amount equal to 15 percent 

10 of the total amount of grants made to the State of Lou11 isiana through the Federal Emergency Management Agen12 cy in response to Hurricane Katrina. 

13 (b) USE OF FUNDS.—The Governor of the State of 

14 Louisiana shall use amounts made available under sub15 section (a) for activities relating to flood prevention. 

16 TITLE VII—JOB CREATION AND 

17 REPOPULATION INCENTIVES 

18 SEC. 700. AMENDMENT OF 1986 CODE. 

19 Except as otherwise expressly provided, whenever in 

20 this title an amendment or repeal is expressed in terms 

21 of an amendment to, or repeal of, a section or other provi22 sion, the reference shall be considered to be made to a 

23 section or other provision of the Internal Revenue Code 

24 of 1986. 
333 

•S 1766 IS 

1 Subtitle A—Emergency Tax Relief 

2 Measures 

3 SEC. 700A. HURRICANE KATRINA DISASTER AREA. 

4 For purposes of this subtitle, the term ‘‘Hurricane 

5 Katrina disaster area’’ means an area— 

6 (1) with respect to which a major disaster has 

7 been declared by the President before September 14, 

8 2005, under section 401 of the Robert T. Stafford 

9 Disaster Relief and Emergency Assistance Act in 

10 connection with Hurricane Katrina, and 

11 (2) which— 

12 (A) except as provided in subparagraph 

13 (B), is determined by the President before such 

14 date to warrant assistance from the Federal 

15 Government under such Act, and 

16 (B) in the case of sections 706 and 707, 

17 is determined by the President before such date 

18 to warrant individual assistance, or individual 

19 and public assistance, from the Federal Govern20 ment under such Act. 
334 

•S 1766 IS 

1 CHAPTER I—PENALTY FREE USE OF RE2 TIREMENT FUNDS BY NATURAL DIS3 ASTER VICTIMS 

4 SEC. 701. PENALTY FREE WITHDRAWALS FROM RETIRE5 MENT PLANS FOR VICTIMS OF FEDERALLY 

6 DECLARED NATURAL DISASTERS. 

7 (a) IN GENERAL.—Paragraph (2) of section 72(t) 

8 (relating to 10-percent additional tax on early distribu9 tions from qualified retirement plans) is amended by add10 ing at the end the following new subparagraph: 

11 ‘‘(G) DISTRIBUTIONS FROM RETIREMENT

12 PLANS TO VICTIMS OF FEDERALLY DECLARED

13 NATURAL DISASTERS.— 

14 ‘‘(i) DISTRIBUTION ALLOWED.—Any 

15 qualified disaster-relief distribution. 

16 ‘‘(ii) AMOUNT DISTRIBUTED MAY BE

17 REPAID.— 

18 ‘‘(I) IN GENERAL.—Any indi19 vidual who receives a qualified dis20 aster-relief distribution may, at any 

21 time during the 3-year period begin22 ning on the day after the date on 

23 which such distribution was made, 

24 make one or more contributions in an 

25 aggregate amount not to exceed the 
335 

•S 1766 IS 

1 amount of such distribution to an eli2 gible retirement plan (as defined in 

3 section 402(c)(8)(B)) of which such 

4 individual is a beneficiary and to 

5 which a rollover contribution of such 

6 distribution could be made under sec7 tion 402(c), 403(a)(4), 403(b)(8), 

8 408(d)(3), or 457(e)(16), as the case 

9 may be. 

10 ‘‘(II) TREATMENT OF REPAY11 MENTS FOR DISTRIBUTIONS FROM EL12 IGIBLE RETIREMENT PLANS OTHER

13 THAN IRAS.—For purposes of this 

14 title, if a contribution is made pursu15 ant to subclause (I) with respect to a 

16 qualified disaster-relief distribution 

17 from an eligible retirement plan (as so 

18 defined) other than an individual re19 tirement plan, then the taxpayer shall, 

20 to the extent of the amount of the 

21 contribution, be treated as having re22 ceived the qualified disaster-relief dis23 tribution in an eligible rollover dis24 tribution (as defined in section 

25 402(c)(4)) and as having transferred 
336 

•S 1766 IS 

1 the amount to the eligible retirement 

2 plan in a direct trustee to trustee 

3 transfer within 60 days of the dis4 tribution. 

5 ‘‘(III) TREATMENT OF REPAY6 MENTS FOR DISTRIBUTIONS FROM

7 IRAS.—For purposes of this title, if a 

8 contribution is made pursuant to sub9 clause (I) with respect to a qualified 

10 disaster-relief distribution from an in11 dividual retirement plan, then, to the 

12 extent of the amount of the contribu13 tion, the qualified disaster-relief dis14 tribution shall be treated as a dis15 tribution described in section 

16 408(d)(3) and as having been trans17 ferred to the eligible retirement plan 

18 in a direct trustee to trustee transfer 

19 within 60 days of the distribution. 

20 ‘‘(IV) APPLICATION TO GOVERN21 MENTAL SECTION 457 PLANS.—In de22 termining whether any distribution is 

23 a qualified disaster-relief distribution 

24 for purposes of this clause, an eligible 

25 deferred compensation plan (as de-
337 

•S 1766 IS 

1 fined in section 457(b)) maintained by 

2 an employer described in section 

3 457(e)(1)(A) shall be treated as a 

4 qualified retirement plan. 

5 ‘‘(iii) QUALIFIED DISASTER-RELIEF

6 DISTRIBUTION.—Except as provided in 

7 clause (iv), for purposes of this subpara8 graph, the term ‘qualified disaster-relief 

9 distribution’ means any distribution— 

10 ‘‘(I) to an individual who has 

11 sustained a loss as a result of a major 

12 disaster declared under section 401 of 

13 the Robert T. Stafford Disaster Relief 

14 and Emergency Assistance Act and 

15 who has a principal place of abode im16 mediately before the declaration in a 

17 qualified disaster area, and 

18 ‘‘(II) which is made during the 1- 

19 year period beginning on the date 

20 such declaration is made. 

21 ‘‘(iv) DOLLAR LIMITATION.— 

22 ‘‘(I) IN GENERAL.—The term 

23 ‘qualified disaster-relief distribution’ 

24 shall not include any distributions for 

25 any taxable year to the extent the ag-
338 

•S 1766 IS 

1 gregate amount of such distributions 

2 exceeds $100,000, reduced by the ag3 gregate amounts treated as qualified 

4 disaster-relief distributions with re5 spect to such individual for all prior 

6 taxable years. 

7 ‘‘(II) TREATMENT OF PLAN DIS8 TRIBUTIONS.—If a distribution to an 

9 individual with respect to any such 

10 major disaster would (without regard 

11 to subclause (I)) be a qualified dis12 aster-relief distribution, a plan shall 

13 not be treated as violating any re14 quirement of this title merely because 

15 it treats such distribution as a quali16 fied disaster-relief distribution, unless 

17 the aggregate amount of such dis18 tributions from all plans maintained 

19 by the employer (and any member of 

20 any controlled group which includes 

21 the employer) to such individual ex22 ceeds $100,000. 

23 ‘‘(v) QUALIFIED DISASTER AREA.— 

24 For purposes of this subparagraph, the 
339 

•S 1766 IS 

1 term ‘qualified disaster area’ means an 

2 area— 

3 ‘‘(I) with respect to which a 

4 major disaster has been declared by 

5 the President before September 14, 

6 2005, under section 401 of the Robert 

7 T. Stafford Disaster Relief and Emer8 gency Assistance Act in connection 

9 with Hurricane Katrina, and 

10 ‘‘(II) which is determined by the 

11 President before such date to warrant 

12 assistance from the Federal Govern13 ment under such Act.’’. 

14 (b) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE

15 TO TRUSTEE TRANSFER AND WITHHOLDING RULES.— 

16 Paragraph (4) of section 402(c) (relating to eligible roll17 over distribution) is amended by striking ‘‘and’’ at the end 

18 of subparagraph (B), by striking the period at the end 

19 of subparagraph (C) and inserting ‘‘, and’’, and by insert20 ing at the end the following new subparagraph: 

21 ‘‘(D) any qualified disaster-relief distribu22 tion (within the meaning of section 

23 72(t)(2)(G)).’’. 

24 (c) CONFORMING AMENDMENTS.— 
340 

•S 1766 IS 

1 (1) Section 401(k)(2)(B)(i) is amended by 

2 striking ‘‘or’’ at the end of subclause (III), by strik3 ing ‘‘and’’ at the end of subclause (IV) and inserting 

4 ‘‘or’’, and by inserting after subclause (IV) the fol5 lowing new subclause: 

6 ‘‘(V) the date on which a period 

7 referred to in section 

8 72(t)(2)(G)(iii)(II) begins (but only to 

9 the extent provided in section 

10 72(t)(2)(G)), and’’. 

11 (2) Section 403(b)(7)(A)(ii) is amended by in12 serting ‘‘sustains a loss as a result of a major dis13 aster declared under section 401 of the Robert T. 

14 Stafford Disaster Relief and Emergency Assistance 

15 Act by reason of Hurricane Katrina (but only to the 

16 extent provided in section 72(t)(2)(G)),’’ before 

17 ‘‘or’’. 

18 (3) Section 403(b)(11) is amended by striking 

19 ‘‘or’’ at the end of subparagraph (A), by striking the 

20 period at the end of subparagraph (B) and inserting 

21 ‘‘, or’’, and by inserting after subparagraph (B) the 

22 following new subparagraph: 

23 ‘‘(C) for distributions to which section 

24 72(t)(2)(G) applies.’’. 
341 

•S 1766 IS 

1 (4) Section 457(d)(1)(A) is amended by strik2 ing ‘‘or’’ at the end of clause (ii), by adding ‘‘or’’ 

3 at the end of clause (iii), and by adding at the end 

4 the following new clause: 

5 ‘‘(iv) in the case of an eligible de6 ferred compensation plan established and 

7 maintained by an employer described in 

8 subsection (e)(1)(A), when the participant 

9 sustains a loss as a result of a major dis10 aster declared under section 401 of the 

11 Robert T. Stafford Disaster Relief and 

12 Emergency Assistance Act by reason of 

13 Hurricane Katrina (but only to the extent 

14 provided in section 72(t)(2)(G)),’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to distributions received after Au17 gust 28, 2005. 

18 SEC. 702. INCOME AVERAGING FOR DISASTER-RELIEF DIS19 TRIBUTIONS RELATED TO HURRICANE 

20 KATRINA. 

21 (a) IN GENERAL.—In the case of any qualified dis22 aster-relief distribution (within the meaning of section 

23 72(t)(2)(G) of the Internal Revenue Code of 1986) from 

24 a qualified retirement plan (as defined in section 4974(c) 

25 of such Code) to a qualified individual, unless the taxpayer 
342 

•S 1766 IS 

1 elects not to have this section apply for any taxable year, 

2 any amount required to be included in gross income for 

3 such taxable year shall be so included ratably over the 3- 

4 taxable year period beginning with such taxable year. 

5 (b) SPECIAL RULES.— 

6 (1) APPLICATION TO GOVERNMENTAL SECTION

7 457 PLANS.—In determining whether any distribu8 tion is a qualified disaster-relief distribution (as so 

9 defined) for purposes of this section, an eligible de10 ferred compensation plan (as defined in section 

11 457(b) of such Code) maintained by an employer de12 scribed in section 457(e)(1)(A) of such Code shall be 

13 treated as a qualified retirement plan (as so defined) 

14 (2) CERTAIN RULES TO APPLY.—Rules similar 

15 to the rules of subparagraph (E) of section 

16 408A(d)(3) of such Code shall apply for purposes of 

17 this section. 

18 (c) QUALIFIED INDIVIDUAL.—For purposes of this 

19 section, the term ‘‘qualified individual’’ means an indi20 vidual who has sustained a loss as a result of the major 

21 disaster declared under section 401 of the Robert T. Staf22 ford Disaster Relief and Emergency Assistance Act (42 

23 U.S.C. 5170) in connection with Hurricane Katrina and 

24 who has a principal place of abode immediately before the 

25 declaration in a Hurricane Katrina disaster area. 
343 

•S 1766 IS 

1 SEC. 703. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME 

2 PURCHASES CANCELLED DUE TO HURRI3 CANE KATRINA. 

4 (a) RECONTRIBUTIONS.— 

5 (1) IN GENERAL.—Any individual who received 

6 a qualified distribution may, at any time during the 

7 6-month period beginning on the day after the dis8 aster declaration date, make one or more contribu9 tions in an aggregate amount not to exceed the 

10 amount of such qualified distribution to an eligible 

11 retirement plan (as defined in section 402(c)(8)(B) 

12 of the Internal Revenue Code of 1986) of which such 

13 individual is a beneficiary and to which a rollover 

14 contribution of such distribution could be made 

15 under section 402(c), 403(a)(4), 403(b)(8), or 

16 408(d)(3) of such Code, as the case may be. 

17 (2) TREATMENT OF REPAYMENTS.— 

18 (A) TREATMENT OF REPAYMENTS FOR

19 DISTRIBUTIONS FROM ELIGIBLE RETIREMENT

20 PLANS OTHER THAN IRAS.—For purposes of 

21 the Internal Revenue Code of 1986, if a con22 tribution is made pursuant to paragraph (1) 

23 with respect to a qualified distribution from an 

24 eligible retirement plan (as so defined) other 

25 than an individual retirement plan (as defined 

26 in section 7701(a)(37) of such Code), then the 
344 

•S 1766 IS 

1 taxpayer shall, to the extent of the amount of 

2 the contribution, be treated as having received 

3 the qualified distribution in an eligible rollover 

4 distribution (as defined in section 402(c)(4) of 

5 such Code) and as having transferred the 

6 amount to the eligible retirement plan in a di7 rect trustee to trustee transfer within 60 days 

8 of the distribution. 

9 (B) TREATMENT OF REPAYMENTS FOR

10 DISTRIBUTIONS FROM IRAS.—For purposes of 

11 the Internal Revenue Code of 1986, if a con12 tribution is made pursuant to paragraph (1) 

13 with respect to a qualified distribution from an 

14 individual retirement plan (as so defined), then, 

15 to the extent of the amount of the contribution, 

16 the qualified distribution shall be treated as a 

17 distribution described in section 408(d)(3) of 

18 such Code and as having been transferred to 

19 the eligible retirement plan (as so defined) in a 

20 direct trustee to trustee transfer within 60 days 

21 of the distribution. 

22 (b) DEFINITIONS.—For purposes of this section— 

23 (1) QUALIFIED DISTRIBUTION.—The term 

24 ‘‘qualified distribution’’ means any distribution— 
345 

•S 1766 IS 

1 (A) described in section 

2 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

3 to the extent such distribution relates to finan4 cial hardship), 403(b)(11)(B), or 72(t)(2)(F) of 

5 the Internal Revenue Code of 1986, 

6 (B) received after February 28, 2005, and 

7 before August 29, 2005, and 

8 (C) which was to be used to purchase or 

9 construct a principal residence in a Hurricane 

10 Katrina disaster area, but which was not so 

11 purchased or constructed. 

12 (2) DISASTER DECLARATION DATE.—The term 

13 ‘‘disaster declaration date’’ means the date on which 

14 the President designated the area as a Hurricane 

15 Katrina disaster area. 

16 SEC. 704. LOANS FROM QUALIFIED PLANS TO VICTIMS OF 

17 HURRICANE KATRINA. 

18 (a) INCREASE IN LIMIT ON LOANS NOT TREATED AS

19 DISTRIBUTIONS.—In the case of any loan from a qualified 

20 employer plan (as defined under section 72(p)(4) of the 

21 Internal Revenue Code of 1986) to a qualified individual 

22 (as defined in section 102(c)) made after the date of en23 actment of this Act and before the date which is 1 year 

24 after the disaster declaration date (as defined in section 

25 103(b)(2))— 
346 

•S 1766 IS 

1 (1) clause (i) of section 72(p)(2)(A) of such 

2 Code shall be applied by substituting ‘‘$100,000’’ 

3 for ‘‘$50,000’’, and 

4 (2) clause (ii) of such section shall be applied 

5 by substituting ‘‘the present value of the nonforfeit6 able accrued benefit of the employee under the plan’’ 

7 for ‘‘one-half of the present value of the nonforfeit8 able accrued benefit of the employee under the 

9 plan’’. 

10 (b) DELAY OF REPAYMENT.—In the case of a quali11 fied individual (as defined in section 102(c)) with an out12 standing loan on or after August 26, 2005, from a quali13 fied employer plan (as defined in section 72(p)(4) of the 

14 Internal Revenue Code of 1986)— 

15 (1) if the due date pursuant to subparagraph 

16 (B) or (C) of section 72(p)(2) of such Code for any 

17 repayment with respect to such loan occurs during 

18 the period beginning after August 29, 2005, and 

19 ending before August 30, 2006, such due date shall 

20 be delayed for 1 year, 

21 (2) any subsequent repayments with respect to 

22 any such loan shall be appropriately adjusted to re23 flect the delay in the due date under paragraph (1) 

24 and any interest accruing during such delay, and 
347 

•S 1766 IS 

1 (3) in determining the 5-year period and the 

2 term of a loan under subparagraph (B) or (C) of 

3 section 72(p)(2) of such Code, such period shall be 

4 disregarded. 

5 SEC. 705. PROVISIONS RELATING TO PLAN AMENDMENTS. 

6 (a) IN GENERAL.—If this section applies to any plan 

7 or contract amendment such plan or contract shall be 

8 treated as being operated in accordance with the terms 

9 of the plan during the period described in subsection 

10 (b)(2)(A). 

11 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

12 (1) IN GENERAL.—This section shall apply to 

13 any amendment to any plan or annuity contract 

14 which is made— 

15 (A) pursuant to any amendment made by 

16 this title, or pursuant to any regulation issued 

17 by the Secretary of the Treasury or the Sec18 retary of Labor under this title, and 

19 (B) on or before the last day of the first 

20 plan year beginning on or after January 1, 

21 2007, or such later date as the Secretary of the 

22 Treasury may prescribe. 

23 In the case of a governmental plan (as defined in 

24 section 414(d) of the Internal Revenue Code of 

25 1986), subparagraph (B) shall be applied by sub-
348 

•S 1766 IS 

1 stituting the date which is 2 years after the date 

2 otherwise applied under subparagraph (B). 

3 (2) CONDITIONS.—This section shall not apply 

4 to any amendment unless— 

5 (A) during the period— 

6 (i) beginning on the date the legisla7 tive or regulatory amendment described in 

8 paragraph (1)(A) takes effect (or in the 

9 case of a plan or contract amendment not 

10 required by such legislative or regulatory 

11 amendment, the effective date specified by 

12 the plan), and 

13 (ii) ending on the date described in 

14 paragraph (1)(B) (or, if earlier, the date 

15 the plan or contract amendment is adopt16 ed), 

17 the plan or contract is operated as if such plan 

18 or contract amendment were in effect; and 

19 (B) such plan or contract amendment ap20 plies retroactively for such period. 
349 

•S 1766 IS 

1 CHAPTER II—EMPLOYMENT RELIEF 

2 SEC. 706. WORK OPPORTUNITY TAX CREDIT FOR HURRI3 CANE KATRINA EMPLOYEES. 

4 (a) IN GENERAL.—For purposes of section 51 of the 

5 Internal Revenue Code of 1986, a Hurricane Katrina em6 ployee shall be treated as a member of a targeted group. 

7 (b) HURRICANE KATRINA EMPLOYEE.—For pur8 poses of this section, the term ‘‘Hurricane Katrina em9 ployee’’ means any individual who, on August 28, 2005, 

10 had a principal place of abode in a Hurricane Katrina dis11 aster area. 

12 (c) SPECIAL RULES FOR DETERMINING CREDIT.— 

13 For purposes of applying subpart F of part IV of sub14 chapter A of chapter 1 of such Code to wages paid or in15 curred to any Hurricane Katrina employee— 

16 (1) section 51(c)(4) of such Code shall not 

17 apply, and 

18 (2) except in the case of an employee of the em19 ployer (within the meaning of section 51 of such 

20 Code) on August 28, 2005, or an employee initially 

21 hired after such date, section 51(i)(2) of such Code 

22 shall not apply. 

23 (d) APPLICATION OF SECTION.—This section shall 

24 apply only to wages (within the meaning on section 51(c) 

25 of such Code) paid or incurred to any individual who— 
350 

•S 1766 IS 

1 (1) is being hired for a position the principal 

2 place of employment of which is located in a Hurri3 cane Katrina disaster area, and 

4 (2) who begins work for the employer during 

5 the 2-year period beginning on August 29, 2005. 

6 SEC. 707. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

7 AFFECTED BY HURRICANE KATRINA. 

8 (a) IN GENERAL.—In the case of an eligible em9 ployer, there shall be allowed as a credit against the tax 

10 imposed by chapter 1 of the Internal Revenue Code of 

11 1986 for the taxable year an amount equal to 40 percent 

12 of the qualified wages with respect to each eligible em13 ployee of such employer for such taxable year. For pur14 poses of the preceding sentence, the amount of qualified 

15 wages which may be taken into account with respect to 

16 any individual shall not exceed $6,000. 

17 (b) DEFINITIONS.—For purposes of this section— 

18 (1) ELIGIBLE EMPLOYER.—The term ‘‘eligible 

19 employer’’ means any employer— 

20 (A) which conducted an active trade or 

21 business on August 28, 2005, in a Hurricane 

22 Katrina disaster area, and 

23 (B) with respect to whom the trade or 

24 business described in subparagraph (A) is inop25 erable on any day after August 28, 2005, and 
351 

•S 1766 IS 

1 before January 1, 2006, as a result of damage 

2 sustained in connection with Hurricane 

3 Katrina. 

4 (2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

5 employee’’ means with respect to an eligible em6 ployer— 

7 (A) an employee whose principal place of 

8 employment on August 28, 2005, with such eli9 gible employer was in a Hurricane Katrina dis10 aster area, or 

11 (B) a Ready Reserve-National Guard em12 ployee of such eligible employer who is per13 forming qualified active duty and whose prin14 cipal place of employment immediately before 

15 the date on which such employee began per16 forming such qualified active duty was in a 

17 Hurricane Katrina disaster area. 

18 (3) QUALIFIED WAGES.—The term ‘‘qualified 

19 wages’’ means wages (as defined in section 51(c)(1) 

20 of the Internal Revenue Code of 1986, but without 

21 regard to section 3306(b)(2)(B) of such Code) paid 

22 or incurred by an eligible employer with respect to 

23 an eligible employee on any day after August 28, 

24 2005, and before January 1, 2006, which occurs 

25 during the period— 
352 

•S 1766 IS 

1 (A) beginning on the date on which the 

2 trade or business described in paragraph (1) 

3 first became inoperable at the principal place of 

4 employment of the employee immediately before 

5 Hurricane Katrina, and 

6 (B) ending on the date on which such 

7 trade or business has resumed significant oper8 ations at such principal place of employment. 

9 Such term shall include wages paid without regard 

10 to whether the employee performs no services, per11 forms services at a different place of employment 

12 than such principal place of employment, or per13 forms services at such principal place of employment 

14 before significant operations have resumed. 

15 (4) READY RESERVE-NATIONAL GUARD EM16 PLOYEE.—The term ‘‘Ready Reserve-National 

17 Guard employee’’ means an employee who is a mem18 ber of the Ready Reserve of a reserve component of 

19 an Armed Force of the United States as described 

20 in section 10142 and 10101 of title 10, United 

21 States Code and who is performing qualified active 

22 duty. 

23 (5) QUALIFIED ACTIVE DUTY.—The term 

24 ‘‘qualified active duty’’ means— 
353 

•S 1766 IS 

1 (A) active duty, other than the training 

2 duty specified in section 10147 of title 10, 

3 United States Code (relating to training re4 quirements for Ready Reserve), or section 

5 502(a) of title 32, United States Code (relating 

6 to required drills and field exercises for the Na7 tional Guard), in connection with which an em8 ployee is entitled to reemployment rights and 

9 other benefits or to a leave of absence from em10 ployment under chapter 43 of title 38, United 

11 States Code, and 

12 (B) hospitalization incident to such duty. 

13 (c) CERTAIN RULES TO APPLY.—For purposes of 

14 this section, rules similar to the rules of sections 51(i)(1), 

15 52, and 280C(a) of the Internal Revenue Code of 1986 

16 of the shall apply. 

17 (d) CREDIT TO BE PART OF GENERAL BUSINESS

18 CREDIT.—The credit allowed under this section shall be 

19 added to the current year business credit under section 

20 38(b) of the Internal Revenue Code of 1986 and shall be 

21 treated as a credit allowed under subpart D of part IV 

22 of subchapter A of chapter 1 of such Code. 
354 

•S 1766 IS 

1 CHAPTER III—CHARITABLE GIVING 

2 INCENTIVES 

3 SEC. 711. TEMPORARY SUSPENSION OF LIMITATIONS ON 

4 CHARITABLE CONTRIBUTIONS. 

5 (a) IN GENERAL.—Except as otherwise provided in 

6 subsection (b), section 170(b) of the Internal Revenue 

7 Code of 1986 shall not apply to qualified contributions and 

8 such contributions shall not be taken into account for pur9 poses of subsections (b) and (d) of section 170 of the In10 ternal Revenue Code of 1986. 

11 (b) TREATMENT OF EXCESS CONTRIBUTIONS.—For 

12 purposes of section 170 of such Code— 

13 (1) INDIVIDUALS.—In the case of an indi14 vidual— 

15 (A) LIMITATION.—Any qualified contribu16 tion shall be allowed only to the extent that the 

17 aggregate of such contributions does not exceed 

18 the excess of the taxpayer’s contribution base 

19 (as defined in paragraph (1) of section 170(b) 

20 of such Code) over the amount of all other 

21 charitable contributions allowed under such 

22 paragraph. 

23 (B) CARRYOVER.—If the aggregate 

24 amount of qualified contributions made in the 

25 contribution year (within the meaning of section 
355 

•S 1766 IS 

1 170(d)(1) of such Code) exceeds the limitation 

2 of subparagraph (A), such excess shall be added 

3 to the excess described in the portion of sub4 paragraph (A) of such section which precedes 

5 clause (i) thereof for purposes of applying such 

6 section. 

7 (2) CORPORATIONS.—In the case of a corpora8 tion— 

9 (A) LIMITATION.—Any qualified contribu10 tion shall be allowed only to the extent that the 

11 aggregate of such contributions does not exceed 

12 the excess of the taxpayer’s taxable income (as 

13 determined under paragraph (2) of section 

14 170(b) of such Code) over the amount of all 

15 other charitable contributions allowed under 

16 such paragraph. 

17 (B) CARRYOVER.—Rules similar to the 

18 rules of paragraph (1)(B) shall apply for pur19 poses of this paragraph. 

20 (c) EXCEPTION TO OVERALL LIMITATION ON

21 ITEMIZED DEDUCTIONS.—So much of any deduction al22 lowed under section 170 of such Code as does not exceed 

23 the qualified contributions made during the taxable year 

24 shall not be treated as an itemized deduction for purposes 

25 of section 68 of such Code. 
356 

•S 1766 IS 

1 (d) QUALIFIED CONTRIBUTIONS.—For purposes of 

2 this section, the term ‘‘qualified contribution’’ means any 

3 charitable contribution (as defined in section 170(c) of 

4 such Code)— 

5 (1) made during the period beginning on Au6 gust 28, 2005, and ending on December 31, 2005, 

7 in cash to an organization described in section 

8 170(b)(1)(A) of such Code (other than an organiza9 tion described in section 509(a)(3) of such Code), 

10 and 

11 (2) with respect to which the taxpayer has 

12 elected the application of this section. 

13 In the case of a partnership or S corporation, the election 

14 under paragraph (2) shall be made separately by each 

15 partner or shareholder. In the case of a corporation, a con16 tribution shall be treated as a qualified contribution only 

17 if the contribution is for relief efforts related to Hurricane 

18 Katrina. 

19 SEC. 712. CHARITABLE DEDUCTION FOR CONTRIBUTIONS 

20 OF FOOD INVENTORIES. 

21 (a) IN GENERAL.—Subsection (e) of section 170 (re22 lating to certain contributions of ordinary income and cap23 ital gain property) is amended by adding at the end the 

24 following new paragraph: 
357 

•S 1766 IS 

1 ‘‘(7) APPLICATION OF PARAGRAPH (3) TO CER2 TAIN CONTRIBUTIONS OF FOOD INVENTORY.—For 

3 purposes of this section— 

4 ‘‘(A) EXTENSION TO INDIVIDUALS.—In the 

5 case of a charitable contribution of apparently 

6 wholesome food— 

7 ‘‘(i) paragraph (3)(A) shall be applied 

8 without regard to whether the contribution 

9 is made by a C corporation, and 

10 ‘‘(ii) in the case of a taxpayer other 

11 than a C corporation, the aggregate 

12 amount of such contributions for any tax13 able year which may be taken into account 

14 under this section shall not exceed 10 per15 cent of the taxpayer’s net income for such 

16 taxable year from all trades or businesses 

17 from which such contributions were made 

18 for such taxable year, computed without 

19 regard to this section. 

20 ‘‘(B) LIMITATION ON REDUCTION.—In the 

21 case of a charitable contribution of apparently 

22 wholesome food, notwithstanding paragraph 

23 (3)(B), the amount of the reduction determined 

24 under paragraph (1)(A) shall not exceed the 

25 amount by which the fair market value of such 
358 

•S 1766 IS 

1 property exceeds twice the basis of such prop2 erty. 

3 ‘‘(C) DETERMINATION OF BASIS.—If a 

4 taxpayer— 

5 ‘‘(i) does not account for inventories 

6 under section 471, and 

7 ‘‘(ii) is not required to capitalize indi8 rect costs under section 263A, 

9 the taxpayer may elect, solely for purposes of 

10 paragraph (3)(B), to treat the basis of any ap11 parently wholesome food as being equal to 25 

12 percent of the fair market value of such food. 

13 ‘‘(D) DETERMINATION OF FAIR MARKET

14 VALUE.—In the case of a charitable contribu15 tion of apparently wholesome food which is a 

16 qualified contribution (within the meaning of 

17 paragraph (3), as modified by subparagraph 

18 (A) of this paragraph) and which, solely by rea19 son of internal standards of the taxpayer or 

20 lack of market, cannot or will not be sold, the 

21 fair market value of such contribution shall be 

22 determined— 

23 ‘‘(i) without regard to such internal 

24 standards or such lack of market and 
359 

•S 1766 IS 

1 ‘‘(ii) by taking into account the price 

2 at which the same or substantially the 

3 same food items (as to both type and qual4 ity) are sold by the taxpayer at the time of 

5 the contribution (or, if not so sold at such 

6 time, in the recent past). 

7 ‘‘(E) APPARENTLY WHOLESOME FOOD.— 

8 For purposes of this paragraph, the term ‘ap9 parently wholesome food’ has the meaning given 

10 such term by section 22(b)(2) of the Bill Emer11 son Good Samaritan Food Donation Act (42 

12 U.S.C. 1791(b)(2)), as in effect on the date of 

13 the enactment of this paragraph. 

14 ‘‘(F) APPLICATION.—This paragraph shall 

15 apply to contributions made after August 28, 

16 2005, and before January 1, 2006.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to contributions made after August 

19 28, 2005. 

20 SEC. 713. CHARITABLE DEDUCTION FOR CONTRIBUTIONS 

21 OF BOOK INVENTORIES. 

22 (a) IN GENERAL.—Section 170(e)(3) (relating to cer23 tain contributions of ordinary income and capital gain 

24 property) is amended by redesignating subparagraph (C) 
360 

•S 1766 IS 

1 as subparagraph (D) and by inserting after subparagraph 

2 (B) the following new subparagraph: 

3 ‘‘(C) SPECIAL RULE FOR CONTRIBUTIONS

4 OF BOOK INVENTORY FOR EDUCATIONAL PUR5 POSES.— 

6 ‘‘(i) CONTRIBUTIONS OF BOOK INVEN7 TORY.—In determining whether a qualified 

8 book contribution is a qualified contribu9 tion, subparagraph (A) shall be applied 

10 without regard to whether— 

11 ‘‘(I) the donee is an organization 

12 described in the matter preceding 

13 clause (i) of subparagraph (A), and 

14 ‘‘(II) the property is to be used 

15 by the donee solely for the care of the 

16 ill, the needy, or infants. 

17 ‘‘(ii) AMOUNT OF REDUCTION.—Not18 withstanding subparagraph (B), the 

19 amount of the reduction determined under 

20 paragraph (1)(A) shall not exceed the 

21 amount by which the fair market value of 

22 the contributed property (as determined by 

23 the taxpayer using a bona fide published 

24 market price for such book) exceeds twice 

25 the basis of such property. 
361 

•S 1766 IS 

1 ‘‘(iii) QUALIFIED BOOK CONTRIBU2 TION.—For purposes of this paragraph, 

3 the term ‘qualified book contribution’ 

4 means a charitable contribution of books, 

5 but only if the requirements of clauses (iv) 

6 and (v) are met. 

7 ‘‘(iv) IDENTITY OF DONEE.—The re8 quirement of this clause is met if the con9 tribution is to an organization— 

10 ‘‘(I) described in subclause (I) or 

11 (III) of paragraph (6)(B)(i), or 

12 ‘‘(II) described in section 

13 501(c)(3) and exempt from tax under 

14 section 501(a) (other than a private 

15 foundation, as defined in section 

16 509(a), which is not an operating 

17 foundation, as defined in section 

18 4942(j)(3)), which is organized pri19 marily to make books available to the 

20 general public at no cost or to operate 

21 a literacy program. 

22 ‘‘(v) CERTIFICATION BY DONEE.—The 

23 requirement of this clause is met if, in ad24 dition to the certifications required by sub25 paragraph (A) (as modified by this sub-
362 

•S 1766 IS 

1 paragraph), the donee certifies in writing 

2 that— 

3 ‘‘(I) the books are suitable, in 

4 terms of currency, content, and quan5 tity, for use in the donee’s educational 

6 programs, and 

7 ‘‘(II) the donee will use the books 

8 in its educational programs. 

9 ‘‘(vi) BONA FIDE PUBLISHED MARKET

10 PRICE.—For purposes of this subpara11 graph, the term ‘bona fide published mar12 ket price’ means, with respect to any book, 

13 a price— 

14 ‘‘(I) determined using the same 

15 printing and edition, 

16 ‘‘(II) determined in the usual 

17 market in which such a book has been 

18 customarily sold by the taxpayer, and 

19 ‘‘(III) for which the taxpayer can 

20 demonstrate to the satisfaction of the 

21 Secretary that the taxpayer custom22 arily sold such books in arm’s length 

23 transactions within 7 years preceding 

24 the contribution of such a book. 
363 

•S 1766 IS 

1 ‘‘(vii) APPLICATION.—This subpara2 graph shall apply to contributions made 

3 after August 28, 2005, and before January 

4 1, 2006.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to contributions made after August 

7 28, 2005. 

8 SEC. 714. ADDITIONAL EXEMPTION FOR HOUSING HURRI9 CANE KATRINA DISPLACED INDIVIDUALS. 

10 (a) IN GENERAL.—In the case of taxable years of a 

11 natural person beginning in 2005 and 2006, for purposes 

12 of the Internal Revenue Code of 1986, taxable income 

13 shall be reduced by $500 for each Hurricane Katrina dis14 placed individual of the taxpayer for the taxable year. 

15 (b) LIMITATIONS.— 

16 (1) DOLLAR LIMITATION.—The reduction under 

17 subsection (a) shall not exceed $2,000, reduced by 

18 the amount of the reduction under this section for 

19 all previous taxable years. 

20 (2) INDIVIDUALS TAKEN INTO ACCOUNT ONLY

21 ONCE.—An individual shall not be taken into ac22 count under subsection (a) if such individual was 

23 taken into account under such subsection by the tax24 payer in any prior taxable year. 
364 

•S 1766 IS 

1 (c) HURRICANE KATRINA DISPLACED INDIVIDUAL.— 

2 For purposes of this subsection, the term ‘‘Hurricane 

3 Katrina displaced individual’’ means, with respect to any 

4 taxpayer for any taxable year, a natural person who— 

5 (1) was (as of August 28, 2005) a resident of 

6 any Hurricane Katrina disaster area, 

7 (2) is displaced from the person’s residence lo8 cated in the area described in paragraph (1), and 

9 (3) is provided housing free of charge by the 

10 taxpayer in the principal residence of the taxpayer 

11 for a period of 60 consecutive days which ends in 

12 such taxable year. 

13 Such term shall not include the spouse or any dependent 

14 of the taxpayer. 

15 SEC. 715. INCREASE IN STANDARD MILEAGE RATE FOR 

16 CHARITABLE USE OF PASSENGER AUTO17 MOBILE. 

18 Notwithstanding section 170(i) of the Internal Rev19 enue Code of 1986, for purposes of computing the deduc20 tion under section 170 of such Code for use of a vehicle 

21 described in subsection (f)(12)(E)(i) for provision of relief 

22 related to Hurricane Katrina during the period beginning 

23 on August 29, 2005, and ending before January 1, 2007, 

24 the standard mileage rate shall be 70 percent of the stand25 ard mileage rate in effect under section 162(a) of such 
365 

•S 1766 IS 

1 Code at the time of such use. Any increase under this sec2 tion shall be rounded to the next highest cent. 

3 SEC. 716. MILEAGE REIMBURSEMENTS TO CHARITABLE 

4 VOLUNTEERS EXCLUDED FROM GROSS IN5 COME. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 is amended by inserting after section 139A the fol8 lowing new section: 

9 ‘‘SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE 

10 VOLUNTEERS. 

11 ‘‘(a) IN GENERAL.—Gross income of an individual 

12 does not include amounts received, from an organization 

13 described in section 170(c), as reimbursement of operating 

14 expenses with respect to use of a passenger automobile 

15 for the benefit of such organization. The preceding sen16 tence shall apply only to the extent that the expenses 

17 which are reimbursed would be deductible under this chap18 ter if section 274(d) were applied— 

19 ‘‘(1) by using the standard business mileage 

20 rate established under such section, and 

21 ‘‘(2) as if the individual were an employee of an 

22 organization not described in section 170(c). 

23 ‘‘(b) APPLICATION TO VOLUNTEER SERVICES

24 ONLY.—Subsection (a) shall not apply with respect to any 
366 

•S 1766 IS 

1 expenses relating to the performance of services for com2 pensation. 

3 ‘‘(c) NO DOUBLE BENEFIT.—A taxpayer may not 

4 claim a deduction or credit under any other provision of 

5 this title with respect to the expenses under subsection (a). 

6 ‘‘(d) EXEMPTION FROM REPORTING REQUIRE7 MENTS.—Section 6041 shall not apply with respect to re8 imbursements excluded from income under subsection (a). 

9 ‘‘(e) TERMINATION.—This section shall not apply to 

10 use of a passenger automobile after December 31, 2006.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for part III of subchapter B of chapter 1 is amended by 

13 inserting after the item relating to section 139A the fol14 lowing new item: 

‘‘Sec. 139B Mileage reimbursements to charitable volunteers’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to the use of a passenger auto17 mobile after the date of the enactment of this Act, in tax18 able years ending after such date. 

19 CHAPTER IV—ADDITIONAL TAX RELIEF 

20 PROVISIONS 

21 SEC. 721. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN22 DEBTEDNESS FOR VICTIMS OF HURRICANE 

23 KATRINA. 

24 (a) IN GENERAL.—For purposes of the Internal Rev25 enue Code of 1986, gross income shall not include any 
367 

•S 1766 IS 

1 amount which (but for this section) would be includible 

2 in gross income by reason of the discharge (in whole or 

3 in part) of indebtedness of a natural person by an applica4 ble entity (as defined in section 6050P(c)(1)) if the dis5 charge is by reason of the damage sustained by the tax6 payer in connection with Hurricane Katrina. 

7 (b) EXCEPTION.—Subsection (a) shall not apply to 

8 any indebtedness incurred in connection with a trade or 

9 business. 

10 (c) DENIAL OF DOUBLE BENEFIT.—The amount ex11 cluded from gross income under subsection (a) shall be 

12 applied to reduce the tax attributes of the taxpayer as pro13 vided in section 108(b) of such Code. 

14 (d) EFFECTIVE DATE.—This section shall apply to 

15 discharges made on or after August 29, 2005, and before 

16 January 1, 2007. 

17 SEC. 722. SUSPENSION OF CERTAIN LIMITATIONS ON PER18 SONAL CASUALTY LOSSES. 

19 Paragraphs (1) and (2)(A) of section 165(h) of the 

20 Internal Revenue Code of 1986 shall not apply to losses 

21 described in section 165(c)(3) of such Code which are at22 tributable to Hurricane Katrina. In the case of any other 

23 losses, section 165(h)(2)(A) of such Code shall be applied 

24 without regard to the losses referred to in the preceding 

25 sentence. 
368 

•S 1766 IS 

1 SEC. 723. REQUIRED EXERCISE OF AUTHORITY UNDER SEC2 TION 7508A FOR TAX RELIEF FOR VICTIMS OF 

3 HURRICANE KATRINA. 

4 (a) AUTHORITY INCLUDES SUSPENSION OF PAY5 MENT OF EMPLOYMENT AND EXCISE TAXES.—Subpara6 graphs (A) and (B) of section 7508(a)(1) are amended 

7 to read as follows: 

8 ‘‘(A) Filing any return of income, estate, 

9 gift, employment, or excise tax; 

10 ‘‘(B) Payment of any income, estate, gift, 

11 employment, or excise tax or any installment 

12 thereof or of any other liability to the United 

13 States in respect thereof;’’. 

14 (b) APPLICATION TO VICTIMS OF HURRICANE

15 KATRINA.—In the case of any taxpayer determined by the 

16 Secretary of the Treasury to be affected by the Presi17 dentially declared disaster relating to Hurricane Katrina, 

18 any relief provided by the Secretary of the Treasury under 

19 section 7508A of the Internal Revenue Code of 1986 shall 

20 be for a period ending not earlier than February 28, 2006, 

21 and shall be treated as applying to the filing of returns 

22 relating to, and the payment of, employment and excise 

23 taxes. 

24 (c) EFFECTIVE DATE.—The amendment made by 

25 subsection (a) shall apply for any period for performing 

26 an act which has not expired before August 29, 2005. 
369 

•S 1766 IS 

1 SEC. 724. SPECIAL MORTGAGE FINANCING RULES FOR 

2 RESIDENCES LOCATED IN HURRICANE 

3 KATRINA DISASTER AREA. 

4 In the case of a residence located in a Hurricane 

5 Katrina disaster area which replaces a residence destroyed 

6 by Hurricane Katrina or which is being repaired for dam7 age caused by Hurricane Katrina, section 143 of the In8 ternal Revenue Code of 1986 shall be applied with the fol9 lowing modifications to financing provided with respect to 

10 such residence within 3 years after the date of the disaster 

11 declaration: 

12 (1) Subsections (d) of such section 143 shall be 

13 applied as if such residence were a targeted area 

14 residence. 

15 (2) The limitation under subsection (k)(4) of 

16 such section 143 shall be increased (but not above 

17 $150,000) to the extent the qualified home-improve18 ment loan is for the repair of damage caused by 

19 Hurricane Katrina. 

20 This section shall apply only with respect to bonds issued 

21 after August 28, 2005, and before August 29, 2008. 
370 

•S 1766 IS 

1 SEC. 825. EXTENSION OF REPLACEMENT PERIOD FOR NON2 RECOGNITION OF GAIN FOR PROPERTY 

3 7OCATED IN HURRICANE KATRINA DISASTER 

4 AREA. 

5 Notwithstanding subsections (g) and (h) of section 

6 1033 of the Internal Revenue Code of 1986, clause (i) of 

7 section 1033(a)(2)(B) of such Code shall be applied by 

8 substituting ‘‘5 years’’ for ‘‘2 years’’ with respect to prop9 erty which is compulsorily or involuntarily converted as 

10 a result of Hurricane Katrina in a Hurricane Katrina dis11 aster area, but only if substantially all of the use of the 

12 replacement property is in such area. 

13 SEC. 726. SPECIAL RULE FOR DETERMINING EARNED IN14 COME. 

15 (a) IN GENERAL.—In the case of a qualified indi16 vidual, if the earned income of the taxpayer for the taxable 

17 year of such taxpayer which includes August 28, 2005, 

18 is less than the earned income which is attributable to the 

19 taxpayer for the preceding taxable year, the credits al20 lowed under sections 24(d) and 32 of the Internal Revenue 

21 Code of 1986 may, at the election of the taxpayer, be de22 termined by substituting— 

23 (1) such earned income for the preceding tax24 able year, for 

25 (2) such earned income for the taxable year 

26 which includes August 28, 2005. 
371 

•S 1766 IS 

1 (b) QUALIFIED INDIVIDUAL.—For purposes of this 

2 section, the term ‘‘qualified individual’’ means any indi3 vidual whose principal place of abode was (as of August 

4 28, 2005) in any Hurricane Katrina disaster area. 

5 (c) EARNED INCOME.—For purposes of this section, 

6 the term ‘‘earned income’’ has the meaning given such 

7 term under section 32(c) of such Code. 

8 (d) SPECIAL RULES.— 

9 (1) APPLICATION TO JOINT RETURNS.—For 

10 purpose of subsection (a), in the case of a joint re11 turn for a taxable year which includes August 28, 

12 2005, 

13 (A) such subsection shall apply if either 

14 spouse is a qualified individual, 

15 (B) the earned income which is attrib16 utable to the taxpayer for the preceding taxable 

17 year shall be the sum of the earned income 

18 which is attributable to each spouse for such 

19 preceding taxable year, and 

20 (C) the substitution described in such sub21 section shall apply only with respect to earned 

22 income which is attributable to a spouse who is 

23 a qualified individual. 

24 (2) UNIFORM APPLICATION OF ELECTION.— 

25 Any election made under subsection (a) shall apply 
372 

•S 1766 IS 

1 with respect to both section 24(d) and section 32 of 

2 such Code. 

3 (3) ERRORS TREATED AS MATHEMATICAL

4 ERROR.—For purposes of section 6213 of such 

5 Code, an incorrect use on a return of earned income 

6 pursuant to subsection (a) shall be treated as a 

7 mathematical or clerical error. 

8 (4) NO EFFECT ON DETERMINATION OF GROSS

9 INCOME.—For purposes of the Internal Revenue 

10 Code of 1986, gross income shall be determined 

11 without regard to any substitution under subsection 

12 (a). 

13 SEC. 727. SECRETARIAL AUTHORITY TO MAKE ADJUST14 MENTS REGARDING TAXPAYER AND DEPEND15 ENCY STATUS. 

16 With respect to taxable years beginning in 2005 or 

17 2006, the Secretary of the Treasury or the Secretary’s del18 egate may make such adjustments in the application of 

19 the internal revenue laws as may be necessary to ensure 

20 that taxpayers do not lose any deduction or credit or expe21 rience a change of filing status by reason of temporary 

22 relocations after Hurricane Katrina or by reason of the 

23 receipt of hurricane relief. Any adjustments made under 

24 the preceding sentence shall ensure that an individual is 
373 

•S 1766 IS 

1 not taken into account by more than one taxpayer with 

2 respect to the same tax benefit. 

3 CHAPTER V—EMERGENCY REQUIREMENT 

4 SEC. 731. EMERGENCY REQUIREMENT. 

5 Any provision of this Act causing an effect on re6 ceipts, budget authority, or outlays is designated as an 

7 emergency requirement pursuant to section 402 of H. 

8 Con. Res. 95 (109th Congress). 

9 Subtitle II—Additional Tax 

10 Incentives 

11 SEC. 741. TAX BENEFITS FOR THE MAJOR DISASTER AREA 

12 DAMAGED IN HURRICANE KATRINA. 

13 (a) IN GENERAL.—Chapter 1 is amended by adding 

14 at the end the following new subchapter: 

15 ‘‘Subchapter Z—Hurricane Katrina Disaster 

16 Zone Benefits 

‘‘Sec. 1400M. Tax benefits for Hurricane Katrina Disaster Zone. 

17 ‘‘SEC. 1400M. TAX BENEFITS FOR HURRICANE KATRINA DIS18 ASTER ZONE. 

19 ‘‘(a) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

20 ACQUIRED AFTER AUGUST 28, 2005.— 

21 ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 

22 any qualified Hurricane Katrina Disaster Zone prop23 erty— 
374 

•S 1766 IS 

1 ‘‘(A) the depreciation deduction provided 

2 by section 167(a) for the taxable year in which 

3 such property is placed in service shall include 

4 an allowance equal to 50 percent of the ad5 justed basis of such property, and 

6 ‘‘(B) the adjusted basis of the qualified 

7 Hurricane Katrina Disaster Zone property shall 

8 be reduced by the amount of such deduction be9 fore computing the amount otherwise allowable 

10 as a depreciation deduction under this chapter 

11 for such taxable year and any subsequent tax12 able year. 

13 ‘‘(2) QUALIFIED HURRICANE KATRINA DIS14 ASTER ZONE PROPERTY.—For purposes of this sub15 section— 

16 ‘‘(A) IN GENERAL.—The term ‘qualified 

17 Hurricane Katrina Disaster Zone property’ 

18 means property— 

19 ‘‘(i)(I) which is described in section 

20 168(k)(2)(A)(i), or 

21 ‘‘(II) which is nonresidential real 

22 property, or residential rental property, 

23 which is described in subparagraph (B), 

24 ‘‘(ii) substantially all of the use of 

25 which is in the Hurricane Katrina Disaster 
375 

•S 1766 IS 

1 Zone and is in the active conduct of a 

2 trade or business by the taxpayer in such 

3 Zone, 

4 ‘‘(iii) the original use of which in the 

5 Hurricane Katrina Disaster Zone com6 mences with the taxpayer after August 29, 

7 2005, 

8 ‘‘(iv) which is acquired by the tax9 payer by purchase (as defined in section 

10 179(d)) after August 28, 2005, but only if 

11 no written binding contract for the acquisi12 tion was in effect before August 29, 2005, 

13 and 

14 ‘‘(v) which is placed in service by the 

15 taxpayer on or before the termination date. 

16 The term ‘termination date’ means December 

17 31, 2012 (December 31, 2015, in the case of 

18 nonresidential real property and residential 

19 rental property). 

20 ‘‘(B) ELIGIBLE REAL PROPERTY.—Non21 residential real property or residential rental 

22 property is described in this subparagraph only 

23 to the extent it rehabilitates real property dam24 aged, or replaces real property destroyed or 

25 condemned, as a result of Hurricane Katrina. 
376 

•S 1766 IS 

1 For purposes of the preceding sentence, prop2 erty shall be treated as replacing real property 

3 destroyed or condemned if, as part of an inte4 grated plan, such property replaces real prop5 erty which is included in a continuous area 

6 which includes real property destroyed or con7 demned. 

8 ‘‘(C) EXCEPTIONS.— 

9 ‘‘(i) ALTERNATIVE DEPRECIATION

10 PROPERTY.—The term ‘qualified Hurri11 cane Katrina Disaster Zone property’ shall 

12 not include any property described in sec13 tion 168(k)(2)(D)(i). 

14 ‘‘(ii) QUALIFIED HURRICANE KATRINA

15 DISASTER ZONE LEASEHOLD IMPROVE16 MENT PROPERTY.—Such term shall not in17 clude any qualified Hurricane Katrina Dis18 aster Zone leasehold improvement prop19 erty. 

20 ‘‘(iii) ELECTION OUT.—For purposes 

21 of this subsection, rules similar to the rules 

22 of section 168(k)(2)(D)(iii) shall apply. 

23 ‘‘(D) SPECIAL RULES.—For purposes of 

24 this subsection, rules similar to the rules of sec25 tion 168(k)(2)(E) shall apply, except that 
377 

•S 1766 IS 

1 clause (i) thereof shall be applied without re2 gard to ‘and January 1, 2005’ and clause (iv) 

3 thereof shall be applied by substituting ‘quali4 fied Hurricane Katrina Disaster Zone property’ 

5 for ‘qualified property’. 

6 ‘‘(E) ALLOWANCE AGAINST ALTERNATIVE

7 MINIMUM TAX.—For purposes of this sub8 section, rules similar to the rules of section 

9 168(k)(2)(G) shall apply. 

10 ‘‘(b) 5-YEAR RECOVERY PERIOD FOR DEPRECIATION

11 OF CERTAIN LEASEHOLD IMPROVEMENTS.— 

12 ‘‘(1) IN GENERAL.—For purposes of section 

13 168, the term ‘5-year property’ includes any quali14 fied Hurricane Katrina Disaster Zone leasehold im15 provement property. 

16 ‘‘(2) QUALIFIED HURRICANE KATRINA DIS17 ASTER ZONE LEASEHOLD IMPROVEMENT PROP18 ERTY.—For purposes of this section, the term 

19 ‘qualified Hurricane Katrina Disaster Zone leasehold 

20 improvement property’ means qualified leasehold im21 provement property (as defined in section 168(k)(3)) 

22 if— 

23 ‘‘(A) such building is located in the Hurri24 cane Katrina Disaster Zone, 
378 

•S 1766 IS 

1 ‘‘(B) such improvement is placed in service 

2 after August 28, 2005, and before January 1, 

3 2007, and 

4 ‘‘(C) no written binding contract for such 

5 improvement was in effect before August 28, 

6 2005. 

7 ‘‘(3) REQUIREMENT TO USE STRAIGHT LINE

8 METHOD.—The applicable depreciation method 

9 under section 168 shall be the straight line method 

10 in the case of qualified Hurricane Katrina Disaster 

11 Zone leasehold improvement property. 

12 ‘‘(4) 9-YEAR RECOVERY PERIOD UNDER ALTER13 NATIVE SYSTEM.—For purposes of section 168(g), 

14 the class life of qualified Hurricane Katrina Disaster 

15 Zone leasehold improvement property shall be 9 

16 years. 

17 ‘‘(c) TAX-EXEMPT BOND FINANCING.— 

18 ‘‘(1) IN GENERAL.—For purposes of this title, 

19 any qualified Hurricane Katrina Disaster Bond shall 

20 be treated as an exempt facility bond. 

21 ‘‘(2) QUALIFIED HURRICANE KATRINA DIS22 ASTER BOND.—For purposes of this subsection, the 

23 term ‘qualified Hurricane Katrina Disaster Bond’ 

24 means any bond issued as part of an issue if— 
379 

•S 1766 IS 

1 ‘‘(A) 95 percent or more of the net pro2 ceeds (as defined in section 150(a)(3)) of such 

3 issue are to be used for qualified project costs, 

4 ‘‘(B) such bond is issued by a State or po5 litical subdivision in which a part of the Hurri6 cane Katrina Disaster Zone is located, 

7 ‘‘(C) the Governor designates such bond 

8 for purposes of this section, and 

9 ‘‘(D) such bond is issued after the date of 

10 the enactment of this section and before Janu11 ary 1, 2011. 

12 ‘‘(3) LIMITATIONS ON AMOUNT OF BONDS.— 

13 ‘‘(A) AGGREGATE AMOUNT DESIGNATED.— 

14 The maximum aggregate face amount of bonds 

15 which may be designated under this subsection 

16 shall not exceed $45,000,000. 

17 ‘‘(B) MOVABLE PROPERTY.—No bonds 

18 shall be issued which are to be used for movable 

19 fixtures and equipment. 

20 ‘‘(4) QUALIFIED PROJECT COSTS.—For pur21 poses of this subsection, the term ‘qualified project 

22 costs’ means the cost of acquisition, construction, re23 construction, and renovation of— 

24 ‘‘(A) nonresidential real property (includ25 ing nonprofit and commercial business, rec-
380 

•S 1766 IS 

1 reational, transportation, health care, and edu2 cation facilities), residential real property, and 

3 residential rental property (including fixed ten4 ant improvements associated with such prop5 erty) located in the Hurricane Katrina Disaster 

6 Zone, including related infrastructure, and 

7 ‘‘(B) public utility property (as defined in 

8 section 168(i)(10)) located in the Hurricane 

9 Katrina Disaster Zone. 

10 ‘‘(5) SPECIAL RULES.—In applying this title to 

11 any qualified Hurricane Katrina Disaster Bond, the 

12 following modifications shall apply: 

13 ‘‘(A) Sections 146 (relating to volume 

14 cap), 147(f) (relating to public approval), and 

15 149(b) (relating to Federal guarantees) shall 

16 not apply. 

17 ‘‘(B) Sections 142(d) and 150(b)(2) (relat18 ing to tenant targeting rules for residential 

19 rental property shall not apply, 

20 ‘‘(C) Section 147(d) (relating to acquisi21 tion of existing property not permitted) shall be 

22 applied by substituting ‘50 percent’ for ‘15 per23 cent’ each place it appears. 

24 ‘‘(D) Section 148(f)(4)(C) (relating to ex25 ception from rebate for certain proceeds to be 
381 

•S 1766 IS 

1 used to finance construction expenditures) shall 

2 apply to the available construction proceeds of 

3 bonds issued under this section. 

4 ‘‘(E) Repayments of principal on financing 

5 provided by the issue— 

6 ‘‘(i) may not be used to provide fi7 nancing, and 

8 ‘‘(ii) must be used not later than the 

9 close of the 1st semiannual period begin10 ning after the date of the repayment to re11 deem bonds which are part of such issue. 

12 The requirement of clause (ii) shall be treated 

13 as met with respect to amounts received within 

14 10 years after the date of issuance of the issue 

15 (or, in the case of a refunding bond, the date 

16 of issuance of the original bond) if such 

17 amounts are used by the close of such 10 years 

18 to redeem bonds which are part of such issue. 

19 ‘‘(F) Section 57(a)(5) shall not apply. 

20 ‘‘(6) SEPARATE ISSUE TREATMENT OF POR21 TIONS OF AN ISSUE.—This subsection shall not 

22 apply to the portion of an issue which (if issued as 

23 a separate issue) would be treated as a qualified 

24 bond or as a bond that is not a private activity bond 
382 

•S 1766 IS 

1 (determined without regard to paragraph (1)), if the 

2 issuer elects to so treat such portion. 

3 ‘‘(7) INTEREST TREATED AS BANK ELIGIBLE.— 

4 Any interest with respect to any qualified Hurricane 

5 Katrina Disaster Bond shall not be treated as tax6 exempt interest for purposes of section 265(b). 

7 ‘‘(d) ADVANCE REFUNDINGS OF CERTAIN TAX-EX8 EMPT BONDS.— 

9 ‘‘(1) IN GENERAL.—With respect to a bond de10 scribed in paragraph (2) issued as part of an issue 

11 90 percent (95 percent in the case of a bond de12 scribed in paragraph (2)(B)) or more of the net pro13 ceeds (as defined in section 150(a)(3)) of which were 

14 used to finance facilities located within the Hurri15 cane Katrina Disaster Zone (or property which is 

16 functionally related and subordinate to facilities lo17 cated in such Zone), one additional advanced refund18 ing after the date of the enactment of this section 

19 and before January 1, 2011, shall be allowed under 

20 the applicable rules of section 149(d) if— 

21 ‘‘(A) the Governor designates the advance 

22 refunding bond for purposes of this subsection, 

23 and 

24 ‘‘(B) the requirements of paragraph (4) 

25 are met. 
383 

•S 1766 IS 

1 ‘‘(2) BONDS DESCRIBED.—A bond is described 

2 in this paragraph if such bond was outstanding on 

3 August 28, 2005, and is— 

4 ‘‘(A) a State or local bond (as defined in 

5 section 103(c)(1)) which is a general obligation 

6 a State or political subdivision in the Hurricane 

7 Katrina Disaster Zone, or 

8 ‘‘(B) a qualified 501(c)(3) bond (as de9 fined in section 145(a)) issued by or on behalf 

10 of a State or political subdivision in the Hurri11 cane Katrina Disaster Zone. 

12 ‘‘(3) ADDITIONAL REQUIREMENTS.—The re13 quirements of this paragraph are met with respect 

14 to any advance refunding of a bond described in 

15 paragraph (2) if— 

16 ‘‘(A) no advance refundings of such bond 

17 would be allowed under any provision of law 

18 after August 28, 2005, 

19 ‘‘(B) the advance refunding bond is the 

20 only other outstanding bond with respect to the 

21 refunded bond, and 

22 ‘‘(C) the requirements of section 148 are 

23 met with respect to all bonds issued under this 

24 subsection. 
384 

•S 1766 IS 

1 ‘‘(e) STATE AND LOCAL BONDS.—For purposes of 

2 this title, any State or local bond issued by a State or 

3 political subdivision in which a part of the Hurricane 

4 Katrina Disaster Zone is located— 

5 ‘‘(1) for disaster cleanup purposes, may be 

6 issued without regard to any working capital financ7 ing restrictions under section 148 or Federal guar8 antee limitations under section 149(b), and 

9 ‘‘(2) for student loans, may be issued without 

10 regard to any volume cap limitations under section 

11 146 or any special allowance payments in computing 

12 yield on such loans under section 148. 

13 ‘‘(f) INCREASE IN EXPENSING UNDER SECTION

14 179.— 

15 ‘‘(1) IN GENERAL.—For purposes of section 

16 179— 

17 ‘‘(A) the limitation under section 179(b)(1) 

18 shall be increased by the lesser of— 

19 ‘‘(i) $100,000, or 

20 ‘‘(ii) the cost of section 179 property 

21 which is qualified Hurricane Katrina Dis22 aster Zone property placed in service dur23 ing the taxable year, and 

24 ‘‘(B) the amount taken into account under 

25 section 179(b)(2) with respect to any section 
385 

•S 1766 IS 

1 179 property which is qualified Hurricane 

2 Katrina Disaster Zone property shall be 50 per3 cent of the cost thereof. 

4 ‘‘(2) QUALIFIED HURRICANE KATRINA DIS5 ASTER ZONE PROPERTY.—For purposes of this sub6 section, the term ‘qualified Hurricane Katrina Dis7 aster Zone property’ has the meaning given such 

8 term by subsection (b)(2), except that the termi9 nation date is December 31, 2007. 

10 ‘‘(3) RECAPTURE.—Rules similar to the rules 

11 under section 179(d)(10) shall apply with respect to 

12 any qualified Hurricane Katrina Disaster Zone prop13 erty which ceases to be used in the Hurricane 

14 Katrina Disaster Zone. 

15 ‘‘(g) HURRICANE KATRINA DISASTER ZONE.—For 

16 purposes of this section, the term ‘Hurricane Katrina Dis17 aster Zone’ means an area— 

18 ‘‘(1) with respect to which a major disaster has 

19 been declared by the President before September 14, 

20 2005, under section 401 of the Robert T. Stafford 

21 Disaster Relief and Emergency Assistance Act in 

22 connection with Hurricane Katrina, and 

23 ‘‘(2) which is determined by the President be24 fore such date to warrant individual assistance, or 
386 

•S 1766 IS 

1 individual and public assistance, from the Federal 

2 Government under such Act.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sub4 chapters for chapter 1 is amended by adding at the end 

5 the following new item: 

‘‘SUBCHAPTER Z—HURRICANE KATRINA DISASTER ZONE BENEFITS.’’. 

6 (c) SATISFACTION OF COMMUNITY REINVESTMENT

7 ACT REQUIREMENTS.—A financial institution that pur8 chases any bond described in subsection (c) or (d) of sec9 tion 1400M of the Internal Revenue Code of 1986 shall 

10 be considered, for purposes of an evaluation under section 

11 804 of the Community Reinvestment Act of 1977 (12 

12 U.S.C. 2903), to be meeting the credit needs of its entire 

13 community, including low- and moderate-income neighbor14 hoods. 

15 SEC. 742. PREMIUMS FOR MORTGAGE INSURANCE. 

16 (a) IN GENERAL.—For purposes of section 163(h)(3) 

17 of the Internal Revenue Code of 1986, premiums paid or 

18 accrued for qualified mortgage insurance by a taxpayer 

19 during the taxable year in connection with acquisition in20 debtedness with respect to a qualified residence of the tax21 payer located in a Hurricane Katrina Disaster Zone (as 

22 defined in section 1400M(g) of such Code) shall be treated 

23 as qualified residence interest. 
387 

•S 1766 IS 

1 (b) QUALIFIED MORTGAGE INSURANCE.—For pur2 poses of this section, the term ‘‘qualified mortgage insur3 ance’’ means— 

4 (1) mortgage insurance provided by the Vet5 erans Administration, the Federal Housing Adminis6 tration, or the Rural Housing Administration, and 

7 (2) private mortgage insurance (as defined by 

8 section 2 of the Homeowners Protection Act of 1998 

9 (12 U.S.C. 4901), as in effect on the date of the en10 actment of this section). 

11 (c) SPECIAL RULES FOR PREPAID QUALIFIED MORT12 GAGE INSURANCE.—For purposes of subsection (a), any 

13 amount paid by the taxpayer for qualified mortgage insur14 ance that is properly allocable to any mortgage the pay15 ment of which extends to periods that are after the close 

16 of the taxable year in which such amount is paid shall 

17 be chargeable to capital account and shall be treated as 

18 paid in such periods to which so allocated. No deduction 

19 shall be allowed for the unamortized balance of such ac20 count if such mortgage is satisfied before the end of its 

21 term. The preceding sentences shall not apply to amounts 

22 paid for qualified mortgage insurance provided by the Vet23 erans Administration or the Rural Housing Administra24 tion. 

25 (d) INFORMATION RETURNS.— 
388 

•S 1766 IS 

1 (1) IN GENERAL.—The Secretary of the Treas2 ury may prescribe, by regulations, that any person 

3 who, in the course of a trade or business, receives 

4 from any individual premiums for mortgage insur5 ance with respect to a qualified residence of the tax6 payer located in a Hurricane Katrina Disaster Zone 

7 (as so defined) aggregating $600 or more for any 

8 calendar year, shall make a return with respect to 

9 each such individual. Such return shall be in such 

10 form, shall be made at such time, and shall contain 

11 such information as the Secretary of the Treasury 

12 may prescribe. 

13 (2) STATEMENT TO BE FURNISHED TO INDIVID14 UALS WITH RESPECT TO WHOM INFORMATION IS RE15 QUIRED.—Every person required to make a return 

16 under paragraph (1) shall furnish to each individual 

17 with respect to whom a return is made a written 

18 statement showing such information as the Sec19 retary of the Treasury may prescribe. Such written 

20 statement shall be furnished on or before January 

21 31 of the year following the calendar year for which 

22 the return under paragraph (1) was required to be 

23 made. 

24 (3) SPECIAL RULES.—For purposes of this sub25 section, rules similar to the rules of section 
389 

•S 1766 IS 

1 6050H(c) of the Internal Revenue Code of 1986 

2 shall apply. 

3 (d) EFFECTIVE DATE.—This section shall apply to 

4 amounts paid or accrued after the date of the enactment 

5 of this Act in taxable years ending after such date, and 

6 before the date which is 3 years after such date. 

7 SEC. 743. SUSPENSION OF AIR TRANSPORTATION EXCISE 

8 TAXES. 

9 No tax imposed under section 4261 or 4271 of the 

10 Internal Revenue Code of 1986 shall apply with respect 

11 to any segment of taxable transportation (as defined in 

12 sections 4262 and 4272 of such Code) beginning or ending 

13 in any airport located in a Hurricane Katrina Disaster 

14 Zone (as defined in section 1400M(g) of such Code) dur15 ing the 3-year period beginning on August 28, 2005. 

16 SEC. 744. RELOCATION TAX CREDIT FOR VICTIMS OF HUR17 RICANE KATRINA. 

18 (a) IN GENERAL.—Subpart B of part IV of sub19 chapter A of chapter 1 is amended by adding at the end 

20 the following new section: 

21 ‘‘SEC. 30D. RELOCATION EXPENSES FOR VICTIMS OF HUR22 RICANE KATRINA. 

23 ‘‘(a) IN GENERAL.—There shall be allowed as a cred24 it against the tax imposed by this chapter for the applica-
390 

•S 1766 IS 

1 ble taxable year an amount equal to the qualified reloca2 tion expenses of the taxpayer. 

3 ‘‘(b) QUALIFIED RELOCATION EXPENSES; APPLICA4 BLE TAXABLE YEAR.—For purposes of this section— 

5 ‘‘(1) QUALIFIED RELOCATION EXPENSES.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 relocation expenses’ means the reasonable relo8 cation expenses incurred after August 26, 2005, 

9 and before January 1, 2008, with respect to— 

10 ‘‘(i) in the case of an individual who 

11 had a principal place of abode in a Hurri12 cane Katrina disaster area on August 26, 

13 2005— 

14 ‘‘(I) the relocation such indi15 vidual to any area within the United 

16 States, and 

17 ‘‘(II) the relocation of such indi18 vidual after a relocation described in 

19 subclause (I) to a location in the Hur20 ricane Katrina disaster area in which 

21 the individual had a principal place of 

22 abode on August 26, 2005, and 

23 ‘‘(ii) in the case of a trade or business 

24 which was located in a Hurricane Katrina 

25 disaster area on August 26, 2005— 
391 

•S 1766 IS 

1 ‘‘(I) the relocation of such trade 

2 or business to any area within the 

3 United States, and 

4 ‘‘(II) the relocation of such trade 

5 or business after a relocation de6 scribed in subclause (I) to a location 

7 in the Hurricane Katrina disaster 

8 area in which the trade or business 

9 was located on August 26, 2005. 

10 ‘‘(B) RELOCATION EXPENSES.—The term 

11 ‘relocation expenses’ means— 

12 ‘‘(i) in the case of expenses incurred 

13 with respect to an individual described in 

14 subparagraph (A)(i), expenses described in 

15 section 217(b)(1), and 

16 ‘‘(ii) in the case of expenses incurred 

17 with respect to a trade or business de18 scribed in subparagraph (A)(ii), expenses 

19 (other than expenses for meals)— 

20 ‘‘(I) of moving any inventory or 

21 other item necessary for carrying on 

22 such trade or business, and 

23 ‘‘(II) of traveling from the 

24 former location to the new location. 
392 

•S 1766 IS 

1 ‘‘(2) TAXABLE YEAR IN WHICH EXPENSES ARE

2 ALLOWED.—The term ‘applicable taxable year’ 

3 means— 

4 ‘‘(A) in the case of relocation expenses de5 scribed in paragraph (1)(A)(i), the taxable year 

6 of the individual in which the individual relo7 cates to a location in the Hurricane Katrina 

8 disaster area in which the individual had a 

9 principal place of abode on August 26, 2005. 

10 ‘‘(B) in the case of relocation expenses de11 scribed in paragraph (1)(A)(ii), the taxable year 

12 in which the trade or business of the taxpayer 

13 is relocated to a location in the Hurricane 

14 Katrina disaster area in which the trade or 

15 business was located on August 26, 2005. 

16 ‘‘(3) HURRICANE KATRINA DISASTER AREA.— 

17 The term ‘Hurricane Katrina disaster area’ means 

18 an area— 

19 ‘‘(A) with respect to which a major dis20 aster has been declared by the President before 

21 September 14, 2005, under section 401 of the 

22 Robert T. Stafford Disaster Relief and Emer23 gency Assistance Act in connection with Hurri24 cane Katrina, and 
393 

•S 1766 IS 

1 ‘‘(B) which is determined by the President 

2 before such date to warrant individual assist3 ance, or individual and public assistance, from 

4 the Federal Government under such Act. 

5 ‘‘(c) CARRYBACK AND CARRYFORWARD ALLOWED.— 

6 ‘‘(1) IN GENERAL.—If the credit allowable 

7 under subsection (a) for a taxable year exceeds the 

8 amount of the limitation under subsection (d) for 

9 such taxable year (in this subsection referred to as 

10 the ‘unused credit year’), such excess shall be a 

11 credit carryback to each of the 3 taxable years pre12 ceding the unused credit year and a credit 

13 carryforward to each of the 20 taxable years fol14 lowing the unused credit year, except that no excess 

15 may be carried to a taxable year beginning before 

16 the date of the enactment of this section. The pre17 ceding sentence shall not apply to any credit 

18 carryback if such credit carryback is attributable to 

19 property for which a deduction for depreciation is 

20 not allowable. 

21 ‘‘(2) RULES.—Rules similar to the rules of sec22 tion 39 shall apply with respect to the credit 

23 carryback and credit carryforward under paragraph 

24 (1). 
394 

•S 1766 IS 

1 ‘‘(d) APPLICATION WITH OTHER CREDITS.—The 

2 credit allowed under subsection (a) for any taxable year 

3 shall not exceed the excess (if any) of— 

4 ‘‘(1) the sum of the regular tax for the taxable 

5 year and the tentative minimum tax for the taxable 

6 year, over 

7 ‘‘(2) the sum of the credits allowable under sub8 part A and sections 27, 29, and 30.’’. 

9 (b) DENIAL OF DOUBLE BENEFIT.—Section 280C is 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(e) HURRICANE KATRINA RELOCATION EX13 PENSES.—No deduction shall be allowed for the portion 

14 of the expenses otherwise allowable as a deduction for the 

15 taxable year which is equal to the amount of the credit 

16 determined for the taxable year under section 45N(a).’’. 

17 (c) CONFORMING AMENDMENT.—The table of section 

18 for subpart B of part IV of subchapter A of chapter 1 

19 is amended by inserting after the item relating to section 

20 30C the following new item: 

‘‘Sec. 30D. Relocation expenses for victims of Hurricane Katrina.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to expenses paid or incurred after 

23 August 26, 2005. 
395 

•S 1766 IS 

1 SEC. 745. 50-PERCENT INCOME TAX HOLIDAY. 

2 (a) IN GENERAL.—In the case of an individual, there 

3 shall be excluded from gross income for each taxable year 

4 beginning during the income tax holiday period an amount 

5 equal to the lesser of— 

6 (1) 50 percent of the sum of— 

7 (A) the eligible wages for the taxable year, 

8 plus 

9 (B) the eligible net earnings from self-em10 ployment for the taxable year, or 

11 (2) $35,000 ($70,000 in the case of a joint re12 turn). 

13 (b) INCOME TAX HOLIDAY PERIOD.—For purposes 

14 of this section— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the term ‘‘income tax holiday period ’’ 

17 means the period beginning on August 28, 2005, 

18 and ending on December 31, 2007. 

19 (2) SPECIAL RULE FOR TAXABLE YEAR IN20 CLUDING AUGUST 28, 2005.—For purposes of sub21 section (a), any taxable year of the taxpayer which 

22 includes August 28, 2005, shall be treated as a tax23 able year beginning during the income tax holiday 

24 period, except that the eligible wages and eligible net 

25 earnings from self-employment of the taxpayer for 

26 such taxable year shall be equal to the amount of 
396 

•S 1766 IS 

1 such wages or earnings determined without regard 

2 to this paragraph multiplied by a fraction— 

3 (A) the numerator of which is the number 

4 of days in the taxable year on and after August 

5 28, 2005, and 

6 (B) the denominator of which is the num7 ber of days in the taxable year. 

8 (c) ELIGIBLE WAGES.—For purposes of this section, 

9 the term ‘‘eligible wages’’ means wages (as defined in sec10 tion 3401(a)) received by the taxpayer during the taxable 

11 year for services performed by the taxpayer in the Hurri12 cane Katrina Disaster Zone. For purposes of the pre13 ceding sentence, services shall be treated as performed in 

14 such Zone if substantially all of such services are so per15 formed. 

16 (d) ELIGIBLE NET EARNINGS FROM SELF-EMPLOY17 MENT.—For purposes of this section— 

18 (1) IN GENERAL.—The term ‘‘eligible net earn19 ings from self-employment’’ means the net earnings 

20 from self-employment of the taxpayer for the taxable 

21 year determined under section 1402, except that— 

22 (A) eligible wages shall not be taken into 

23 account to the extent not excluded under sec24 tion 1402 (b)(1), and 
397 

•S 1766 IS 

1 (B) only self-employment income (and the 

2 deductions attributable thereto) which are prop3 erly allocable to the active conduct of a trade or 

4 business within the Hurricane Katrina Disaster 

5 Zone shall be taken into account. 

6 (2) RENTAL OF PROPERTY.—For purposes of 

7 paragraph (1), the rental of real or personal prop8 erty shall be treated as the active conduct of a trade 

9 or business if— 

10 (A) in the case of real property, the prop11 erty is located in the Hurricane Katrina Dis12 aster Zone, and 

13 (B) in the case of personal property, at 

14 least 50 percent of the rental of the property is 

15 by businesses located in, or is by residents of, 

16 such Zone. 

17 The exception under section 1402(a)(1) shall not 

18 apply to self-employment income (and the deductions 

19 attributable thereto) properly allocable to a trade or 

20 business to which this paragraph applies. 

21 (e) HURRICANE KATRINA DISASTER ZONE.—The 

22 term ‘‘Hurricane Katrina Disaster Zone’’ has the meaning 

23 given such term by section 1400M(g) of the Internal Rev24 enue Code of 1986. 
398 

•S 1766 IS 

1 SEC. 746. HURRICANE KATRINA DISASTER ZONE RESTORA2 TION TAX CREDIT. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 is amended by adding at the end 

5 the following new section: 

6 ‘‘SEC. 45N. INVESTMENT IN HURRICANE KATRINA DIS7 ASTER ZONE PROPERTY. 

8 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec9 tion 38, the Hurricane Katrina Disaster Zone restoration 

10 credit determined under this section shall equal the tax11 payer’s cost of Hurricane Katrina Disaster Zone property 

12 placed in service during the taxable year, multiplied by 

13 the applicable qualifying investment percentage set forth 

14 in subsection (b). 

15 ‘‘(b) APPLICABLE QUALIFYING INVESTMENT PER16 CENTAGE.—For purposes of subsection (a), the applicable 

17 qualifying investment percentages are: 

18 ‘‘(1) 20 percent with respect to property placed 

19 in service within 12 months following the date on 

20 which the area in which such property is placed in 

21 service is declared a Hurricane Katrina Disaster 

22 Zone. 

23 ‘‘(2) 15 percent with respect to property placed 

24 in service more than 12 months but within 24 

25 months following such date. 
399 

•S 1766 IS 

1 ‘‘(3) 10 percent with respect to property placed 

2 in service more than 24 months but within 36 

3 months following such date. 

4 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur5 poses of this section— 

6 ‘‘(1) HURRICANE KATRINA DISASTER ZONE

7 PROPERTY.—The term ‘Hurricane Katrina Disaster 

8 Zone property’ means property of a character sub9 ject to the allowance for depreciation provided in 

10 section 167— 

11 ‘‘(A) which is placed in service by the tax12 payer in a Hurricane Katrina Disaster Zone, 

13 and 

14 ‘‘(B) which replaces functionally similar 

15 property owned by such taxpayer that was dam16 aged or destroyed as a result of the major dis17 aster declared by the President in connect with 

18 Hurricane Katrina, regardless of whether the 

19 replacement property utilizes improved or more 

20 advanced technologies than the property being 

21 replaced, and 

22 ‘‘(C) the basis of which is not taken into 

23 account for any other credit under this title. 
400 

•S 1766 IS 

1 ‘‘(2) HURRICANE KATRINA DISASTER ZONE.— 

2 The term ‘Hurricane Katrina Disaster Zone’ has the 

3 meaning given to such term by section 1400M(g). 

4 ‘‘(3) NO REDUCTION IN BASIS.—The provisions 

5 of section 50(c) shall not apply to reduce the basis 

6 of Hurricane Katrina Disaster Zone property.’’. 

7 (b) ADDITIONAL CARRYBACK OF CREDIT AL8 LOWED.—Section 39(a) is amended by adding at the end 

9 the following new paragraph: 

10 ‘‘(4) 3-YEAR CARRYBACK FOR HURRICANE

11 KATRINA DISASTER ZONE RESTORATION CREDIT.— 

12 Notwithstanding subsection (d), in the case of the 

13 Hurricane Katrina Disaster Zone restoration credit 

14 under section 45N— 

15 ‘‘(A) this section shall be applied sepa16 rately from the business credit (other than the 

17 Hurricane Katrina Disaster Zone restoration 

18 credit), and 

19 ‘‘(B) paragraph (1) shall be applied by 

20 substituting ‘3 taxable years’ for ‘1 taxable 

21 year’ in subparagraph (A) thereof.’’. 

22 (c) CREDIT ALLOWED AGAINST REGULAR AND MIN23 IMUM TAX.—Section 38(c)(4)(B) is amended by striking 

24 the period at the end of clause (ii)(II) and inserting ‘‘, 

25 and’’ and by adding at the end the following new clause: 
401 

•S 1766 IS 

1 ‘‘(iii) the credit determined under sec2 tion 45N.’’. 

3 (d) CONFORMING AMENDMENTS.—Subsection (b) of 

4 section 38 is amended by striking ‘‘and’’ at the end of 

5 paragraph (25), by striking the period at the end of para6 graph (26) and inserting ‘‘, and’’ by adding at the end 

7 the following new paragraph: 

8 ‘‘(27) the Hurricane Katrina Disaster Zone res9 toration credit determined under section 45N.’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to amounts paid or incurred after 

12 the date of the enactment of this Act with respect to prop13 erty placed in service after such date and before January 

14 1, 2008. 

15 SEC. 747. 5-YEAR CARRYBACK OF NET OPERATING LOSSES 

16 AND TEMPORARY SUSPENSION OF 90 PER17 CENT AMT LIMIT FOR BUSINESSES IN HURRI18 CANE KATRINA DISASTER ZONE. 

19 (a) IN GENERAL.—Section 172(b)(1)(H) is amended 

20 by striking ‘‘during 2001 or 2002’’ and inserting ‘‘during 

21 2005 or 2006 arising from the trade or business of any 

22 taxpayer located in the Hurricane Katrina Disaster Zone 

23 (as defined in section 1400M(g))’’. 

24 (b) TEMPORARY SUSPENSION.—Section 

25 56(d)(1)(A)(ii)(I) is amended— 
402 

•S 1766 IS 

1 (1) by striking ‘‘during 2001 or 2002’’ and in2 serting ‘‘during 2005 or 2006 arising from the trade 

3 or business of any taxpayer located in the Hurricane 

4 Katrina Disaster Zone (as defined in section 

5 1400M(g))’’, and 

6 (2) by striking ‘‘during 2001 and 2002’’ and in7 serting ‘‘during 2005 and 2006 arising from the 

8 trade or business of any taxpayer located in the 

9 Hurricane Katrina Disaster Zone (as defined in sec10 tion 1400M(g))’’. 

11 (c) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the amendment made by this section shall 

14 apply to net operating losses for taxable years end15 ing after December 31, 2004. 

16 (2) TEMPORARY SUSPENSION.—The amend17 ments made by subsection (b) shall apply to taxable 

18 years ending before January 1, 2007. 

19 SEC. 748. ALLOWANCE OF INCOME TAX CREDIT TO SMALL 

20 BUSINESSES WHOSE OPERATIONS WERE SIG21 NIFICANTLY INTERRUPTED BY HURRICANE 

22 KATRINA. 

23 (a) ALLOWANCE OF CREDIT.— 

24 (1) IN GENERAL.—In the case of an eligible 

25 small employer, there shall be allowed as a credit 
403 

•S 1766 IS 

1 against the tax imposed by subtitle A of the Internal 

2 Revenue Code of 1986 for any taxable year of the 

3 taxpayer which includes August 28 of 2005, 2006, 

4 or 2007, an amount equal to the lesser of— 

5 (A) $1,000 multiplied by the number of el6 igible employees of the employer, or 

7 (B) $100,000. 

8 (2) TREATMENT OF CREDIT.—For purposes of 

9 the Internal Revenue Code of 1986, except as other10 wise provided in this section, any credit allowed 

11 under this section shall be treated in the same man12 ner as a credit allowed under subpart B of part IV 

13 of subchapter A of chapter 1 of such Code. 

14 (b) LIMITATION BASED ON AMOUNT OF TAX.— 

15 (1) IN GENERAL.—The credit allowed by sub16 section (a) for any taxable year shall not exceed the 

17 sum of— 

18 (A) the regular tax for the taxable year re19 duced by the sum of the credits allowed under 

20 subparts A and B of part IV of subchapter A 

21 of chapter 1 of the Internal Revenue Code of 

22 1986, plus 

23 (B) the tax imposed by section 55(a) of 

24 such Code for the taxable year. 
404 

•S 1766 IS 

1 (2) UNLIMITED CARRYFORWARD OF CREDIT.— 

2 If the amount of the credit allowable under sub3 section (a) for any taxable year exceeds the limita4 tion under paragraph (1), such excess shall be treat5 ed as a carryover to all succeeding taxable years 

6 and, subject to the limitation under paragraph (1), 

7 shall be added to the credits allowed by subpart B 

8 of part IV of subchapter A of chapter 1 of such 

9 Code for any such succeeding taxable year. 

10 (c) ELIGIBLE SMALL EMPLOYER AND EMPLOYEE

11 DEFINED.—For purposes of this section— 

12 (1) ELIGIBLE SMALL EMPLOYER.— 

13 (A) IN GENERAL.—The term ‘‘eligible 

14 small employer’’ means an employer which— 

15 (i) was engaged in the active conduct 

16 of a trade or business in a Hurricane 

17 Katrina disaster area on August 28, 2005, 

18 (ii) employed an average of more than 

19 1 but less than 300 employees on business 

20 days during the 1-year period ending on 

21 such date (or, if shorter, the period of its 

22 existence) whose principal place of employ23 ment was in such an area, 

24 (iii) meets the business interruption 

25 test of subparagraph (B). and 
405 

•S 1766 IS 

1 (iv) has resumed in a Hurricane 

2 Katrina disaster area substantially all of 

3 the operations of the trade or business de4 scribed in paragraph (1) on or before De5 cember 31, 2006. 

6 (B) BUSINESS INTERRUPTION TEST.—An 

7 employer meets the requirements of this sub8 paragraph if— 

9 (i) the employer is required to sus10 pend all or part of the active conduct of a 

11 trade or business described in subpara12 graph (A)(i) by reason of Hurricane 

13 Katrina, and 

14 (ii) the gross receipts of such em15 ployer from the active conduct of the trade 

16 or business for the taxable year are at 

17 least 20 percent less than the gross re18 ceipts for the preceding taxable year (or if 

19 the business was not in existence for all or 

20 a portion of the preceding taxable year, at 

21 least 20 percent less than the gross re22 ceipts which could have been reasonably 

23 been expected to receive based on the gross 

24 receipts of the trade or business during its 

25 existence). 
406 

•S 1766 IS 

1 (2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

2 employee’’ means an employee of an employer— 

3 (A) who is employed in the active conduct 

4 of the trade or business described in paragraph 

5 (1)(A)(i) on the date substantially all of the op6 erations of such trade or business were re7 sumed, and 

8 (B) whose principal place of employment is 

9 in a Hurricane Katrina disaster area. 

10 For purposes of subsection (a)(1)(A), the number of 

11 eligible employees with respect to any trade or busi12 ness shall not exceed the average number of employ13 ees described in paragraph (1)(A)(ii). 

14 (d) DEFINITIONS AND SPECIAL RULES.—For pur15 poses of this section— 

16 (1) HURRICANE KATRINA DISASTER AREA.— 

17 The term ‘‘Hurricane Katrina disaster area’’ means 

18 an area— 

19 (A) with respect to which a major disaster 

20 has been declared by the President before Sep21 tember 14, 2005, under section 401 of the Rob22 ert T. Stafford Disaster Relief and Emergency 

23 Assistance Act in connection with Hurricane 

24 Katrina, and 
407 

•S 1766 IS 

1 (B) which is determined by the President 

2 before such date to warrant individual assist3 ance, or individual and public assistance, from 

4 the Federal Government under such Act. 

5 (2) AGGREGATION RULE.—All employers treat6 ed as a single employer under subsections (a) or (b) 

7 of section 52 of the Internal Revenue Code of 1986 

8 shall be treated as 1 employer. 

9 (3) APPLICATION OF DOLLAR LIMIT.—The 

10 $100,000 limit under subsection (a) (1)(B) shall— 

11 (A) in the case of employers aggregated 

12 under paragraph (2), be allocated in such man13 ner as such employers provide, 

14 (B) in the case of a partnership, S cor15 poration, trust, or other passthru entity, be ap16 plied at both the entity and the partner, share17 holder, beneficiary, or other beneficial owner 

18 level, and 

19 (C) in the case of a taxpayer operating 

20 more than 1 trade or business, apply on an ag21 gregate base to all such trades or businesses. 

22 (4) GROSS RECEIPTS.—Rules similar to the 

23 rules of subparagraphs (B), (C), and (D) of section 

24 448(c)(3) of such Code shall apply in determining 

25 gross receipts for any period. 
408 

•S 1766 IS 

1 (e) TREATMENT OF PERSONS NOT ABLE TO USE

2 ENTIRE CREDIT.— 

3 (1) IN GENERAL.—A taxpayer may transfer any 

4 credit allowed under subsection (a) through an as5 signment to any other person . Such transfer may 

6 be revoked only with the consent of the Secretary of 

7 the Treasury. 

8 (2) REGULATIONS.—The Secretary of the 

9 Treasury shall prescribe such regulations as nec10 essary to ensure that any credit described in para11 graph (1) is claimed once and not reassigned by 

12 such other person. 

13 (3) SATISFACTION OF COMMUNITY REINVEST14 MENT ACT REQUIREMENTS.—A financial institution 

15 that purchases any credit under paragraph (1) shall 

16 be considered, for purposes of an evaluation under 

17 section 804 of the Community Reinvestment Act of 

18 1977 (12 U.S.C. 2903), to be meeting the credit 

19 needs of its entire community, including low- and 

20 moderate-income neighborhoods. 

21 SEC. 749. HOME PURCHASE BY VICTIMS OF HURRICANE 

22 KATRINA. 

23 (a) IN GENERAL.—Subpart A of part IV of sub24 chapter A of chapter 1 (relating to nonrefundable personal 
409 

•S 1766 IS 

1 credits) is amended by inserting after section 25D the fol2 lowing new section: 

3 ‘‘SEC. 25E. HOME PURCHASE BY INDIVIDUALS DISPLACED 

4 BY HURRICANE KATRINA. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli6 gible homebuyer who purchases a principal residence in 

7 a Hurricane Katrina Disaster Zone, there shall be allowed 

8 as a credit against the tax imposed by this chapter for 

9 the taxable year an amount equal to so much of the pur10 chase price of the residence as does not exceed $50,000. 

11 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

12 GROSS INCOME.— 

13 ‘‘(1) IN GENERAL.—The amount allowable as a 

14 credit under subsection (a) (determined without re15 gard to this subsection and subsection (d)) for the 

16 taxable year shall be reduced (but not below zero) by 

17 the amount which bears the same ratio to the credit 

18 so allowable as— 

19 ‘‘(A) the excess (if any) of— 

20 ‘‘(i) the taxpayer’s modified adjusted 

21 gross income for such taxable year, over 

22 ‘‘(ii) $70,000 ($110,000 in the case of 

23 a joint return), bears to 

24 ‘‘(B) $20,000. 
410 

•S 1766 IS 

1 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

2 For purposes of paragraph (1), the term ‘modified 

3 adjusted gross income’ means the adjusted gross in4 come of the taxpayer for the taxable year increased 

5 by any amount excluded from gross income under 

6 section 911, 931, or 933. 

7 ‘‘(c) ELIGIBLE HOMEBUYER.—For purposes of this 

8 section— 

9 ‘‘(1) IN GENERAL.—The term ‘eligible home10 buyer’ means any individual if— 

11 ‘‘(A) on August 29, 2005, the principal 

12 place of abode of such individual (and if mar13 ried, such individual’s spouse) was located in a 

14 Hurricane Katrina Disaster Zone, and such 

15 principal place of abode was rendered uninhab16 itable by Hurricane Katrina, and 

17 ‘‘(B) the principal residence for which the 

18 credit is allowed under subsection (a) is located 

19 in the same State as such principal place of 

20 abode. 

21 ‘‘(2) ONE-TIME ONLY.—If an individual is al22 lowed a credit under this section with respect to any 

23 principal residence, such individual may not be al24 lowed a credit under this section with respect to any 

25 other principal residence. 
411 

•S 1766 IS 

1 ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin2 cipal residence’ has the same meaning as when used 

3 in section 121. 

4 ‘‘(d) APPLICATION WITH OTHER CREDITS.—The 

5 credit allowed under subsection (a) for any taxable year 

6 shall not exceed the excess (if any) of— 

7 ‘‘(1) the sum of the regular tax for the taxable 

8 year and the tentative minimum tax for the taxable 

9 year, over 

10 ‘‘(2) the sum of the credits allowable under this 

11 subpart and sections 27, 29, and 30. 

12 ‘‘(e) CARRYOVER OF CREDIT.—If the credit allowable 

13 under subsection (a) exceeds the limitation imposed by 

14 section 26(a) for such taxable year reduced by the sum 

15 of the credits allowable under this subpart (other than this 

16 section and sections 23, 24, 25B, and 1400C) such excess 

17 shall be carried to the succeeding taxable year and added 

18 to the credit allowable under subsection (a) for such tax19 able year. 

20 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

21 For purposes of this section— 

22 ‘‘(1) HURRICANE KATRINA DISASTER ZONE.— 

23 The term ‘Hurricane Katrina Disaster Zone’ has the 

24 meaning given to such term by section 1400M(g). 

25 ‘‘(2) ALLOCATION OF DOLLAR LIMITATION.— 
412 

•S 1766 IS 

1 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA2 RATELY.—In the case of a married individual 

3 filing a separate return, subsection (a) shall be 

4 applied by substituting ‘$25,000’ for ‘$50,000’. 

5 ‘‘(B) OTHER TAXPAYERS.—If 2 or more 

6 individuals who are not married purchase a 

7 principal residence, the amount of the credit al8 lowed under subsection (a) shall be allocated 

9 among such individuals in such manner as the 

10 Secretary may prescribe, except that the total 

11 amount of the credits allowed to all such indi12 viduals shall not exceed $50,000. 

13 ‘‘(3) PURCHASE.— 

14 ‘‘(A) IN GENERAL.—The term ‘purchase’ 

15 means any acquisition, but only if— 

16 ‘‘(i) the property is not acquired from 

17 a person whose relationship to the person 

18 acquiring it would result in the disallow19 ance of losses under section 267 or 707(b) 

20 (but, in applying section 267(b) and (c) for 

21 purposes of this section, paragraph (4) of 

22 section 267(c) shall be treated as providing 

23 that the family of an individual shall in24 clude only his spouse, ancestors, and lineal 

25 descendants), and 
413 

•S 1766 IS 

1 ‘‘(ii) the basis of the property in the 

2 hands of the person acquiring it is not de3 termined— 

4 ‘‘(I) in whole or in part by ref5 erence to the adjusted basis of such 

6 property in the hands of the person 

7 from whom acquired, or 

8 ‘‘(II) under section 1014(a) (re9 lating to property acquired from a de10 cedent). 

11 ‘‘(B) CONSTRUCTION.—A residence which 

12 is constructed by the taxpayer shall be treated 

13 as purchased by the taxpayer on the date the 

14 taxpayer first occupies such residence. 

15 ‘‘(4) PURCHASE PRICE.—The term ‘purchase 

16 price’ means the adjusted basis of the principal resi17 dence on the date such residence is purchased. 

18 ‘‘(g) REPORTING.—If the Secretary requires informa19 tion reporting under section 6045 by a person described 

20 in subsection (e)(2) thereof to verify the eligibility of tax21 payers for the credit allowable by this section, the excep22 tion provided by section 6045(e)(5) shall not apply. 

23 ‘‘(h) BASIS ADJUSTMENT.—For purposes of this sub24 title, if a credit is allowed under this section with respect 

25 to the purchase of any residence, the basis of such resi-
414 

•S 1766 IS 

1 dence shall be reduced by the amount of the credit so al2 lowed. 

3 ‘‘(i) TREATMENT OF PERSONS NOT ABLE TO USE

4 ENTIRE CREDIT.— 

5 ‘‘(1) IN GENERAL.—A taxpayer may transfer 

6 any credit allowed under subsection (a) through an 

7 assignment to any other person . Such transfer may 

8 be revoked only with the consent of the Secretary of 

9 the Treasury. 

10 ‘‘(2) REGULATIONS.—The Secretary of the 

11 Treasury shall prescribe such regulations as nec12 essary to ensure that any credit described in para13 graph (1) is claimed once and not reassigned by 

14 such other person. 

15 ‘‘(3) SATISFACTION OF COMMUNITY REINVEST16 MENT ACT REQUIREMENTS.—A financial institution 

17 that purchases any credit under paragraph (1) shall 

18 be considered, for purposes of an evaluation under 

19 section 804 of the Community Reinvestment Act of 

20 1977 (12 U.S.C. 2903), to be meeting the credit 

21 needs of its entire community, including low- and 

22 moderate-income neighborhoods. 

23 ‘‘(j) APPLICATION OF SECTION.—This section shall 

24 apply to property purchased after August 28, 2005, and 

25 before January 1, 2007.’’. 
415 

•S 1766 IS 

1 (b) CONFORMING AMENDMENT.—Section 1016(a) of 

2 such Code is amended by striking ‘‘and’’ at the end of 

3 paragraph (36), by striking the period at the end of para4 graph (37) and inserting ‘‘, and’’, and by adding at the 

5 end the following new paragraph: 

6 ‘‘(38) to the extent provided in section 

7 25E(h).’’. 

8 (c) CLERICAL AMENDMENT.—The table of sections 

9 for subpart A of part IV of subchapter A of chapter 1 

10 of such Code is amended by inserting after the item relat11 ing to section 25D the following new item: 

‘‘Sec. 25E. Home purchase by individuals displaced by Hurricane 

Katrina.’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years ending after the 

14 date of the enactment of this Act. 

15 SEC. 750. EXPEDITED REFUND CLAIMS. 

16 The Commissioner of Internal Revenue shall establish 

17 a special office to expedite any refund claims resulting 

18 from the provisions of, and amendments made by, this 

19 Act. 
416 

•S 1766 IS 

1 SEC. 751. APPLICATION OF NEW MARKET TAX CREDIT TO 

2 INVESTMENTS IN COMMUNITY DEVELOP3 MENT ENTITIES SERVING AREAS AFFECTED 

4 BY HURRICANE KATRINA. 

5 (a) IN GENERAL.—Subsection (e) of section 45D is 

6 amended by adding at the end the following new para7 graph: 

8 ‘‘(6) AREAS AFFECTED BY HURRICANE

9 KATRINA.—The term ‘low-income community’ shall 

10 include any Hurricane Katrina Disaster Zone (as 

11 defined in section 1400M(g)).’’. 

12 (b) INCREASE IN NATIONAL LIMITATION.—Para13 graph (1) of section 45D(f) is amended by striking sub14 paragraphs (C) and (D) and inserting after subparagraph 

15 (B) the following new subparagraphs: 

16 ‘‘(C) $6,000,000,000 for 2005, of which 

17 $4,000,000,000 is allocated among qualified 

18 community development entities to make quali19 fied low-income community investments within 

20 a low-income community described in subsection 

21 (e)(6), and 

22 ‘‘(D) $6,500,000,000 for 2006 and 2007, 

23 of which $3,000,000,000 for each year is allo24 cated among qualified community development 

25 entities to make qualified low-income commu-
417 

•S 1766 IS 

1 nity investments within a low-income commu2 nity described in subsection (e)(6).’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to investments made after August 

5 29, 2005. 

6 SEC. 752. MODIFICATIONS TO LOW-INCOME HOUSING 

7 CREDIT. 

8 (a) MODIFICATION OF CREDIT ALLOCATION.—In the 

9 case of the State of Louisiana— 

10 (1) section 42(h)(2)(C)(ii)(I) of the Internal 

11 Revenue Code of 1986 (relating to State housing 

12 credit ceiling) shall be applied by substituting 

13 ‘‘$3.70’’ for ‘‘$1.75’’ for calendar years 2006 and 

14 2007, and 

15 (2) section 42(h)(2)(D)(i) of such Code (relat16 ing to unused housing credit carryovers allocated 

17 among certain States) shall not apply to the State’s 

18 unused housing credit carryover for calendar year 

19 2006. 

20 (b) MODIFICATION OF QUALIFIED LOW-INCOME

21 HOUSING PROJECT.— 

22 (1) IN GENERAL.—In determining if any 

23 project for residential rental property located in any 

24 Hurricane Katrina disaster area (as defined in sec25 tion 700A) in the State of Louisiana and placed in 
418 

•S 1766 IS 

1 service after the date of the enactment of this Act 

2 in any taxable year beginning in 2005, 2006, or 

3 2007, is a qualified low-income housing property 

4 under section 42(g)(1) of the Internal Revenue Code 

5 of 1986, such section shall be applied by allowing 

6 the taxpayer to elect to meet the requirements of 

7 paragraph (2). 

8 (2) 60-80 TEST.—A project described in para9 graph (1) meets the requirements of this paragraph 

10 if 60 percent or more of the residential units in such 

11 project are both rent-restricted and occupied by indi12 viduals whose income is 80 percent or less of area 

13 median income. 

14 (c) MODIFICATION OF HIGH COST AREA DETER15 MINATION.—In the case of any building located in any 

16 Hurricane Katrina disaster area (as defined in section 

17 700A) in the State of Louisiana and placed in service after 

18 the date of the enactment of this Act in any taxable year 

19 beginning in 2005, 2006, or 2007, section 42(d)(5)(C) 

20 shall apply by substituting ‘‘not less than 130 percent nor 

21 more than 200 percent (as determined under section 

22 42(m)(2) by the housing credit agency)’’ for ‘‘130 per23 cent’’. 

24 (d) AUTHORIZATION OF REGULATIONS FOR LIHTC 

25 PROPERTIES FINANCED WITH BONDS.—Section 142(d) 
419 

•S 1766 IS 

1 (relating to qualified residential rental project) is amended 

2 by adding at the end the following new paragraph: 

3 ‘‘(8) REGULATIONS.—The Secretary shall pre4 scribe such regulations as may be necessary or ap5 propriate to carry out the purposes of this sub6 section, including regulations— 

7 ‘‘(A) dealing with— 

8 ‘‘(i) projects which include more than 

9 1 building or only a portion of a building, 

10 ‘‘(ii) buildings which are placed in 

11 service in portions, 

12 ‘‘(B) providing for the application of this 

13 subsection to short taxable years, 

14 ‘‘(C) preventing the avoidance of the rules 

15 of this subsection, and 

16 ‘‘(D) providing the opportunity for housing 

17 credit agencies to correct administrative errors 

18 and omissions with respect to allocations and 

19 record keeping within a reasonable period after 

20 their discovery, taking into account the avail21 ability of regulations and other administrative 

22 guidance from the Secretary.’’. 
420 

•S 1766 IS 

1 SEC. 753. ESTATE TAX RELIEF FOR HURRICANE KATRINA 

2 VICITMS. 

3 (a) IN GENERAL.—Subsection (b) of section 2201 is 

4 amended by striking ‘‘and’’ at the end of paragraph (2), 

5 by striking the period at the end of paragraph (3) and 

6 inserting ‘‘, and’’, and by adding at the end the following 

7 new paragraph:: 

8 ‘‘(4) any specified Hurricane Katrina victim.’’. 

9 (b) SPECIFIED HURRICANE KATRINA VICTIM.—Sec10 tion 2201 is amended by adding at the end the following 

11 new subsection: 

12 ‘‘(e) SPECIFIED HURRICANE KATRINA VICTIM.—For 

13 purposes of this section, the term ‘specified Hurricane 

14 Katrina victim’ means any decedent who dies in a Hurri15 cane Katrina Disaster Zone (as defined in section 

16 1400M(g)) as a result of wounds, injury, or illness, or the 

17 inability to obtain treatment for an existing illness by rea18 son of Hurricane Katrina.’’. 

19 (c) CLERICAL AMENDMENTS.— 

20 (1) The heading of section 2201 is amended by 

21 striking ‘‘AND DEATHS OF VICTIMS OF CERTAIN

22 TERRORIST ATTACKS’’ and inserting ‘‘DEATHS

23 OF VICTIMS OF CERTAIN TERRORIST ATTACKS, 

24 AND DEATHS OF VICTIMS OF HURRICANE

25 KATRINA’’. 
421 

•S 1766 IS 

1 (2) The item relating to section 2201 in the 

2 table of sections for subchapter C of chapter 11 is 

3 amended by striking ‘‘and deaths of victims of cer4 tain terrorist attacks’’ and inserting ‘‘deaths of vic5 tims of certain terrorist attacks, and deaths of vic6 tims of Hurricane Katrina’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to estates of decedents dying on 

9 or after August 29, 2005. 

10 SEC. 754. ISSUANCE OF GULF OPPORTUNITY BONDS. 

11 Section 3105 of title 31, United States Code, is 

12 amended by adding at the end the following new sub13 section: 

14 ‘‘(f) The Secretary may designate one or more series 

15 of bonds or certificates (or any portion thereof) under this 

16 section as ‘Gulf Opportunity Bonds’ in response to the 

17 devastation of Hurricane Katrina on August 28, 2005.’’. 

18 TITLE VIII—LAW ENFORCEMENT 

19 IMPROVEMENTS 

20 SEC. 801. DEFINITION OF UNITS OF LOCAL GOVERNMENT. 

21 For the purposes of eligibility for grant programs ad22 ministered by the Department of Justice and Department 

23 of Homeland Security in the State of Louisiana, parish 

24 Sheriffs or District Attorneys are to be considered the unit 

25 of local government. 
422 

•S 1766 IS 

1 SEC. 802. SPECIAL INSPECTOR GENERAL FOR RELIEF AND 

2 RECONSTRUCTION. 

3 (a) SHORT TITLE.—This section may be cited as the 

4 ‘‘Special Inspector General for Relief and Reconstruction 

5 Act of 2005’’. 

6 (b) REDESIGNATION.—(1) Section 3001 of the Emer7 gency Supplemental Appropriations Act for Defense and 

8 for the Reconstruction of Iraq and Afghanistan, 2004 

9 (Public Law 108–106; 117 Stat. 1234; 5 U.S.C. App. 3 

10 section 8G note) is amended— 

11 (A) in subsection (b), by striking ‘‘Office of the 

12 Special Inspector General for Iraq Reconstruction’’ 

13 and inserting ‘‘Office of the Special Inspector Gen14 eral for Relief and Reconstruction’’; and 

15 (B) in subsection (c)(1), by striking all after 

16 ‘‘The head of the Office of the Special Inspector 

17 General’’ and inserting ‘‘for Relief and Reconstruc18 tion is the Special Inspector General for Relief and 

19 Reconstruction (in this section referred to as the ‘In20 spector General’). If a vacancy occurs after the serv21 ice of the individual as provided under subsection (b) 

22 of the Special Inspector General for Relief and Re23 construction Act of 2005, the Inspector General 

24 shall be appointed by the Director of the Office of 

25 Management and Budget.’’. 
423 

•S 1766 IS 

1 (2)(A) The heading of such section is amended to 

2 read as follows: 

3 ‘‘SEC. 3001. SPECIAL INSPECTOR GENERAL FOR RELIEF 

4 AND RECONSTRUCTION.’’. 

5 (B) The heading of title III of such Act is amended 

6 to read as follows: 

7 ‘‘TITLE III—SPECIAL INSPECTOR 

8 GENERAL FOR RELIEF AND 

9 RECONSTRUCTION’’. 

10 (c) CONTINUATION IN OFFICE.—The individual serv11 ing as the Special Inspector General for Iraq Reconstruc12 tion as of the date of the enactment of this Act may con13 tinue to serve as the Special Inspector General for Relief 

14 and Reconstruction (with all additional duties and respon15 sibilities as provided under this section) after that date 

16 without reappointment under paragraph (1) of section 

17 3001(c) of the Emergency Supplemental Appropriations 

18 Act for Defense and for the Reconstruction of Iraq and 

19 Afghanistan, 2004, but remaining subject to removal as 

20 specified in paragraph (4) of that section. 

21 (d) PURPOSES.—Subsection (a) of such section is 

22 amended— 

23 (1) in paragraph (1), by inserting ‘‘and for 

24 Hurricane Katrina recovery activities’’ after ‘‘Iraq 

25 Relief and Reconstruction Fund’’; 
424 

•S 1766 IS 

1 (2) in paragraph (3), by striking ‘‘the Secretary 

2 of State and the Secretary of Defense’’ and inserting 

3 ‘‘the Secretary of State, the Secretary of Homeland 

4 Security, the Secretary of Defense, and the heads of 

5 other Federal agencies, as appropriate,’’. 

6 (e) RESPONSIBILITIES OF ASSISTANT INSPECTOR

7 GENERAL FOR AUDITING.—Subsection (d) of such section 

8 is amended to read as follows: 

9 ‘‘(d) ASSISTANT INSPECTORS GENERAL.—(1) The 

10 Inspector General shall, in accordance with applicable laws 

11 and regulations governing the civil service— 

12 ‘‘(A) appoint 1 or more Assistant Inspectors 

13 General for Auditing who shall have the responsi14 bility for supervising the performance of auditing ac15 tivities relating to— 

16 ‘‘(i) programs and operations supported by 

17 the Iraq Relief and Reconstruction Fund; and 

18 ‘‘(ii) programs and operations relating to 

19 Hurricane Katrina recovery activities; and 

20 ‘‘(B) appoint 1 or more Assistant Inspectors 

21 General for Investigations who shall have the re22 sponsibility for supervising the performance of inves23 tigative activities relating to such programs and op24 erations.’’. 
425 

•S 1766 IS 

1 (f) SUPERVISION.—Such section is further amend2 ed— 

3 (1) in subsection (e)— 

4 (A) in paragraph (1), by striking ‘‘the Sec5 retary of State and the Secretary of Defense’’ 

6 and inserting ‘‘the Director of the Office of 

7 Management and Budget, the Secretary of 

8 State, and the Secretary of Defense’’; and 

9 (B) in paragraph (2)— 

10 (i) by striking ‘‘Department of De11 fense, the Department of State, or the 

12 United States Agency for International 

13 Development’’ and inserting ‘‘Federal Gov14 ernment’’; and 

15 (ii) by inserting ‘‘and Hurricane 

16 Katrina recovery activities’’ after ‘‘Iraq 

17 Relief and Reconstruction Fund’’; 

18 (2) in subsection (f)— 

19 (A) in paragraph (1)— 

20 (i) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

21 (ii) by redesignating subparagraphs 

22 (A) through (E) as clauses (i) through (v), 

23 respectively; and 

24 (iii) by adding at the end the fol25 lowing: 
426 

•S 1766 IS 

1 ‘‘(B) It shall be the duty of the Inspector 

2 General to conduct and coordinate audits and 

3 investigations of the treatment, handling, and 

4 expenditure of amounts appropriated or other5 wise made available for Hurricane Katrina re6 covery by the Federal Government, and of the 

7 programs, operations, and contracts carried out 

8 utilizing such funds, including— 

9 ‘‘(i) the oversight and accounting of 

10 the obligation and expenditure of such 

11 funds; 

12 ‘‘(ii) the monitoring and review of re13 construction activities funded by such 

14 funds; 

15 ‘‘(iii) the monitoring and review of 

16 contracts funded by such funds; 

17 ‘‘(iv) the monitoring and review of the 

18 transfer of such funds and associated in19 formation between and among depart20 ments, agencies, and entities of the United 

21 States, State and local governments, and 

22 private and nongovernmental entities; 

23 ‘‘(v) the maintenance of records on 

24 the use of such funds to facilitate future 
427 

•S 1766 IS 

1 audits and investigations of the use of such 

2 funds; and 

3 ‘‘(vi) the monitoring of Federal grants 

4 and benefit programs.’’; and 

5 (B) in paragraph (4)— 

6 (i) by inserting ‘‘(A)’’ after ‘‘(4)’’; 

7 (ii) by striking all after ‘‘cooperation 

8 of’’ and inserting ‘‘the inspectors general 

9 and auditing entities of all other Federal 

10 departments and agencies, and State and 

11 local government entities.’’; and 

12 (iii) by adding at the end the fol13 lowing: 

14 ‘‘(B)(i) The Inspector General shall en15 sure, to the greatest extent possible, that the 

16 activities of the Inspector General do not dupli17 cate audits and investigations of inspectors gen18 eral and other auditors of Federal departments 

19 and agencies, and State and local government 

20 entities. 

21 ‘‘(ii) The Inspector General shall notify the 

22 inspector general of the relevant agency or de23 partment before initiating an audit or investiga24 tion relating to Hurricane Katrina activities. 
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1 ‘‘(iii) Nothing in this section shall be con2 strued to limit the statutory authority of inspec3 tors general to conduct audits or investigations 

4 relating to Hurricane Katrina activities.’’; 

5 (3) in subsection (h)(4)(B), by striking ‘‘Sec6 retary of State or Secretary of Defense’’ and insert7 ing ‘‘Director of the Office of Management and 

8 Budget and heads of relevant agencies’’; and 

9 (4) in subsection (h)(5)— 

10 (A) by inserting ‘‘(A)’’ after ‘‘(5)’’; 

11 (B) by inserting ‘‘for activities relating to 

12 Iraq’’ after ‘‘operation of such offices’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(B) The Secretary of Homeland Security 

15 shall provide the Inspector General with appro16 priate and adequate office space, together with 

17 such equipment, office supplies, and commu18 nications facilities and services as may be nec19 essary for the operations of such offices for ac20 tivities relating to Hurricane Katrina, and shall 

21 provide necessary maintenance services for such 

22 offices and equipment and facilities located 

23 therein.’’. 
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1 (g) REPORTS RELATING TO THE IRAQI RELIEF AND

2 RECONSTRUCTION.—Subsection (i) of such section is 

3 amended by adding at the end the following: 

4 ‘‘(7)(A) The Inspector General shall also submit 

5 each report under this subsection to the Secretary of 

6 State and the Secretary of Defense. 

7 ‘‘(B)(i) Not later than 30 days after receipt of 

8 a report under subparagraph (A), the Secretary of 

9 State and the Secretary of Defense may submit to 

10 the appropriate committees of Congress any com11 ments on the matters covered by the report as the 

12 Secretary of State or the Secretary of Defense, as 

13 the case may be, considers appropriate. 

14 ‘‘(ii) A report under this subparagraph may in15 clude a classified annex if the Secretary of State or 

16 the Secretary of Defense, as the case may be, con17 siders it necessary.’’. 

18 (h) REPORTS RELATING TO HURRICANE KATRINA

19 RELIEF AND RECONSTRUCTION.—Subsection (j) of such 

20 section is amended to read as follows: 

21 ‘‘(j) REPORTS RELATING TO HURRICANE KATRINA

22 RELIEF AND RECONSTRUCTION.—(1)(A) At the end of 

23 each calendar quarter, beginning with the first full quarter 

24 after the date of enactment of the Special Inspector Gen25 eral for Relief and Reconstruction Act of 2005, the Inspec-
430 

•S 1766 IS 

1 tor General shall submit to the appropriate committees of 

2 Congress a report summarizing for the period of that 

3 quarter the activities of the Inspector General and of the 

4 Hurricane Katrina recovery activities of the Federal Gov5 ernment. Each report shall include, for the period covered 

6 by such report, a detailed statement of all obligations, ex7 penditures, and revenues associated with recovery activi8 ties for Hurricane Katrina, including the following: 

9 ‘‘(i) Obligations and expenditures of appro10 priated funds. 

11 ‘‘(ii) Accounting of the costs incurred to date 

12 for Hurricane Katrina recovery, together with the 

13 estimate of the Federal Government’s costs to com14 plete each project and each program. 

15 ‘‘(iii) Operating expenses of any Federal de16 partments, agencies, or entities receiving appro17 priated funds for Hurricane Katrina recovery activi18 ties. 

19 ‘‘(iv) In the case of any contract described in 

20 paragraph (2)— 

21 ‘‘(I) the amount of the contract or other 

22 agreement; 

23 ‘‘(II) a brief discussion of the scope of the 

24 contract or other agreement; 
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•S 1766 IS 

1 ‘‘(III) a discussion of how the contracting 

2 department or agency identified, and solicited 

3 offers from, potential contractors to perform 

4 the contract, together with a list of the poten5 tial contractors that were issued solicitations 

6 for the offers; and 

7 ‘‘(IV) the justification and approval docu8 ments on which was based the determination to 

9 use procedures other than procedures that pro10 vide for full and open competition. 

11 ‘‘(B) The first quarterly report required to be sub12 mitted under subparagraph (A) shall also summarize ac13 tivities for Hurricane Katrina recovery undertaken before 

14 that quarter. 

15 ‘‘(2) A contract described in this paragraph is any 

16 major contract or other agreement that is entered into by 

17 any department or agency of the United States Govern18 ment that involves the use of amounts appropriated or 

19 otherwise made available for Hurricane Katrina recovery 

20 with any public or private sector entity. 

21 ‘‘(3) Not later than 45 days after the date of enact22 ment of the Special Inspector General for Relief and Re23 construction Act of 2005, the Inspector General shall sub24 mit to the appropriate committees of Congress an interim 

25 report on the status of Hurricane Katrina recovery activi-
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•S 1766 IS 

1 ties of the Federal Government. The interim report shall 

2 include the following: 

3 ‘‘(A) The operational activities of the Office of 

4 the Special Inspector General for Relief and Recon5 struction. 

6 ‘‘(B) The status of auditors and investigators 

7 deployed to the Gulf of Mexico region of the United 

8 States. 

9 ‘‘(C) A strategic plan for oversight, including 

10 audits of no bid contracts. 

11 ‘‘(D) Vulnerabilities identified and immediate 

12 actions to address such vulnerabilities. 

13 ‘‘(E) Measures taken to coordinate interagency 

14 oversight elements. 

15 ‘‘(4) Not later than March 31, 2006, and semiannu16 ally thereafter, the Inspector General shall submit to the 

17 appropriate committees of Congress a report meeting the 

18 requirements of section 5 of the Inspector General Act of 

19 1978 (5 U.S.C. App.). 

20 ‘‘(5) The Inspector General shall publish each report 

21 under this subsection on an accessible Federal Govern22 ment Internet Web site. 

23 ‘‘(6) Nothing in this subsection shall be construed to 

24 authorize the public disclosure of information that is— 
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•S 1766 IS 

1 ‘‘(A) specifically prohibited from disclosure by 

2 any other provision of law; 

3 ‘‘(B) specifically required by Executive order to 

4 be protected from disclosure in the interest of na5 tional defense or national security or in the conduct 

6 of foreign affairs; or 

7 ‘‘(C) a part of an ongoing criminal investiga8 tion. 

9 ‘‘(7)(A) The Inspector General shall also submit each 

10 report under this subsection to the Director of the Office 

11 of Management and Budget, Secretary of Defense, or 

12 heads of other appropriate agencies. 

13 ‘‘(B) Not later than 30 days after receipt of a 

14 report under paragraph (1), the Director of the Of15 fice of Management and Budget and the heads of 

16 other appropriate agencies may submit to the appro17 priate committees of Congress any comments on the 

18 matters covered by the report as the Director of the 

19 Office of Management and Budget and heads of rel20 evant agencies consider appropriate. 

21 ‘‘(8) The Inspector General shall respond to any rea22 sonable summons to appear and testify before any duly 

23 constituted committee of Congress.’’. 

24 (i) TRANSPARENCY.—Subsection (k) of such section 

25 is amended— 
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•S 1766 IS 

1 (1) in paragraph (1), by striking ‘‘subsection 

2 (i), the Secretary of State and the Secretary of De3 fense shall jointly’’ and inserting ‘‘subsection (i) or 

4 (j), the Director of the Office of Management and 

5 Budget and the heads of the relevant departments 

6 shall’’; and 

7 (2) in paragraph (2), by striking ‘‘subsection 

8 (j)(2) of comments on a report under subsection (i), 

9 the Secretary of State and the Secretary of Defense 

10 shall jointly’’ and inserting ‘‘subsection (i)(7)(B) or 

11 (j)(7)(B) of comments on a report under subsection 

12 (i) or (j), the Director of the Office of Management 

13 and Budget and the heads of relevant departments 

14 shall’’. 

15 (j) WAIVER.—Subsection (l) of such section is 

16 amended— 

17 (1) in paragraph (1), by inserting ‘‘or para18 graph (1) or (3) of subsection (j)’’ after ‘‘subsection 

19 (i)’’; and 

20 (2) in paragraph (2), by inserting ‘‘or para21 graph (1) or (3) of subsection (j)’’ after ‘‘subsection 

22 (i)’’. 

23 (k) APPROPRIATE COMMITTEES OF CONGRESS.— 

24 Subsection (m) of such section is amended— 
435 

•S 1766 IS 

1 (1) in paragraph (1), by striking ‘‘and Foreign 

2 Relations’’ and inserting ‘‘Foreign Relations, and 

3 Homeland Security and Governmental Affairs’’; and 

4 (2) in paragraph (2), by striking ‘‘and Inter5 national Relations’’ and inserting ‘‘International Re6 lations, and Homeland Security’’. 

7 (l) FUNDING.—Subsection (n) of such section is 

8 amended by adding at the end the following: 

9 ‘‘(3) There are authorized to be appropriated to 

10 the Office of the Special Inspector General for Relief 

11 and Reconstruction to carry out the responsibilities 

12 of the Special Inspector General relating to Hurri13 cane Katrina recovery $80,000,000 for fiscal year 

14 2006.’’. 

15 (m) TERMINATION.—Subsection (o) of such section 

16 is amended to read as follows: 

17 ‘‘(o) TERMINATION.—(1)(A) The responsibilities of 

18 the Office of the Special Inspector General for Relief and 

19 Reconstruction with respect to the Iraq Relief and Recon20 struction Fund shall terminate on the date that is 10 

21 months after the date, as determined by the Secretary of 

22 State and Secretary of Defense, on which 80 percent of 

23 the amounts appropriated or otherwise made available to 

24 the Iraq Relief and Reconstruction Fund by chapter 2 of 

25 title II of this Act have been obligated. 
436 

•S 1766 IS 

1 ‘‘(B) The responsibilities of the Office of the Special 

2 Inspector General for Relief and Reconstruction with re3 spect to Hurricane Katrina recovery activities shall termi4 nate 2 years after the date of enactment of the Special 

5 Inspector General for Relief and Reconstruction Act of 

6 2005. 

7 ‘‘(2) The Office of the Special Inspector General for 

8 Relief and Reconstruction shall terminate on the later date 

9 occurring under subparagraph (A) or (B) of paragraph 

10 (1).’’. 

11 SEC. 803. GENERAL ACCOUNTABILITY OFFICE REPORT. 

12 The General Accountability Office shall track spend13 ing of money appropriated in each Hurricane Katrina 

14 emergency supplemental appropriations and report to 

15 Congress quarterly on how that money is spent. 

16 SEC. 804. CREATING FEDERAL CRIME OF INTERFERING 

17 WITH FEDERAL DISASTER RELIEF EFFORTS. 

18 (a) IN GENERAL.—Chapter 65 of title 18, United 

19 States Code, is amended by adding the following new sec20 tion: 

21 ‘‘§ 1370. Interference with Federal disaster relief ef22 forts 

23 ‘‘(a) PROHIBITED CONDUCT.—Whoever, during a 

24 presidentially-declared major disaster or emergency— 
437 

•S 1766 IS 

1 ‘‘(1) forcibly assaults, resists, opposes, impedes, 

2 intimidates, or interferes with any officer or em3 ployee of the United States or of any agency in any 

4 branch of the United States Government (including 

5 any member of the uniformed services) while such 

6 officer or employee is engaged in or on account of 

7 the performance of official duties relating to, or in 

8 support of recovery from, the presidentially-declared 

9 disaster or emergency, or any person assisting such 

10 an officer or employee in the performance of such 

11 duties or on account of that assistance; or 

12 ‘‘(2) forcibly assaults, resists, opposes, impedes, 

13 intimidates, or interferes with any person providing 

14 services in support of disaster relief efforts and 

15 working in coordination with a Federal coordinating 

16 officer appointed pursuant to section 302, Public 

17 Law 98–288 (42 U.S.C. 5143), shall, except as pro18 vided in subsection (b) of this section, be fined 

19 under this title or imprisoned not more than two 

20 years, or both. 

21 ‘‘(b) ENHANCED PENALTY.—Whoever, in the com22 mission of and in relation to any act described in sub23 section (a) of this section, carries, possesses or uses a 

24 deadly or dangerous weapon or inflicts serious bodily in25 jury, shall be fined under this title or imprisoned not more 
438 

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1 than 15 years or both, or, if the death of any person re2 sults, shall be punished by death or life imprisonment.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 at the beginning of chapter 86 of title 18, United States 

5 Code, is amended by adding at the end the following new 

6 item: 

‘‘1370. Interference with Federal disaster relief efforts’’. 

7 SEC. 805. PENALTIES FOR FRAUD. 

8 (a) IN GENERAL.—Whoever knowingly makes, or 

9 causes to be made by another, a false statement or rep10 resentation of a material fact, or knowingly has failed, or 

11 caused another to fail, to disclose a material fact, and as 

12 a result of such false statement or representation or of 

13 such nondisclosure such individual has received an amount 

14 of assistance from the Federal Government under this Act 

15 to which he was not entitled, such individual— 

16 (1) shall be ineligible for further assistance 

17 under this Act; and 

18 (2) shall be subject to prosecution under section 

19 1370 of title 18, United States Code. 

20 SEC. 806. PROTECTING OF VOLUNTEERS. 

21 (a) QUALIFIED IMMUNITY FROM SUIT.—Any person 

22 or entity (including any Indian Tribe) that, in response 

23 to harm caused by Hurricane Katrina of 2005, voluntarily, 

24 in good faith, and without a preexisting duty or expecta25 tion of compensation, renders aid (including medical treat-
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•S 1766 IS 

1 ment and rescue assistance) to any individual, shall not 

2 be liable for any injury (including personal injury, prop3 erty damage or loss, and death) arising out of or resulting 

4 from that aid that was not caused by— 

5 (1) willful, wanton, reckless or criminal conduct 

6 of that person or entity; or 

7 (2) conduct of that person or entity that con8 stitutes a violation of a Federal or State civil rights 

9 law. 

10 (b) PREEMPTION.—This section preempts the laws of 

11 a State to the extent such laws are inconsistent with this 

12 section, except that this section shall not preempt any 

13 State law that provides additional protection from liability 

14 relating to volunteers. 

15 SEC. 807. LEAVE TRANSFER PROGRAM IN DISASTERS AND 

16 EMERGENCIES. 

17 Section 6391 of title 5, United States Code, is 

18 amended— 

19 (1) by redesignating subsection (f) as sub20 section (g); and 

21 (2) by inserting after subsection (e) the fol22 lowing: 

23 ‘‘(f) After consultation with the Administrative Office 

24 of the United States Courts, the Office of Personnel Man25 agement shall provide for the participation of employees 
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1 in the judicial branch in any emergency leave transfer pro2 gram under this section.’’. 

Æ