H. R. 1591

One Hundred Tenth Congress

of the

United States of America 

AT THE FIRST SESSION 

Begun and held at the City of Washington on Thursday, 

the fourth day of January, two thousand and seven 

An Act 

Making emergency supplemental appropriations for the fiscal year ending September 

30, 2007, and for other purposes.

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, That the 

following sums are appropriated, out of any money in the Treasury 

not otherwise appropriated, for the fiscal year ending September 

30, 2007, and for other purposes, namely: 

TITLE I 

GLOBAL WAR ON TERROR SUPPLEMENTAL 

APPROPRIATIONS 

CHAPTER 1

DEPARTMENT OF AGRICULTURE 

FOREIGN AGRICULTURAL SERVICE

PUBLIC LAW 480 TITLE II GRANTS

For an additional amount for ‘‘Public Law 480 Title II Grants’’, 

during the current fiscal year, not otherwise recoverable, and unrecovered prior years’ costs, including interest thereon, under the 

Agricultural Trade Development and Assistance Act of 1954, for 

commodities supplied in connection with dispositions abroad under 

title II of said Act, $460,000,000, to remain available until expended. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 1101. There is hereby appropriated $40,000,000 to 

reimburse the Commodity Credit Corporation for the release of 

eligible commodities under section 302(f)(2)(A) of the Bill Emerson 

Humanitarian Trust Act (7 U.S.C. 1736f–1): Provided, That any 

such funds made available to reimburse the Commodity Credit 

Corporation shall only be used to replenish the Bill Emerson 

Humanitarian Trust. 
H. R. 1591—2

CHAPTER 2

DEPARTMENT OF JUSTICE 

LEGAL ACTIVITIES

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

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

Legal Activities’’, $1,648,000, to remain available until September 

30, 2008. 

SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

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

States Attorneys’’, $5,000,000, to remain available until September 

30, 2008. 

UNITED STATES MARSHALS SERVICE

SALARIES AND EXPENSES

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

$6,450,000, to remain available until September 30, 2008. 

NATIONAL SECURITY DIVISION

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $1,736,000, to remain available until September 30, 2008. 

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

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

$268,000,000, of which $258,000,000 is to remain available until 

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

expended to implement corrective actions in response to the findings 

and recommendations in the Department of Justice Office of 

Inspector General report entitled, ‘‘A Review of the Federal Bureau 

of Investigation’s Use of National Security Letters’’, of which 

$500,000 shall be transferred to and merged with ‘‘Department 

of Justice, Office of the Inspector General’’. 

DRUG ENFORCEMENT ADMINISTRATION

SALARIES AND EXPENSES

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

$12,166,000, to remain available until September 30, 2008. 

BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $4,000,000, to remain available until September 30, 2008. 
H. R. 1591—3

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

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

$17,000,000, to remain available until September 30, 2008. 

CHAPTER 3

DEPARTMENT OF DEFENSE—MILITARY 

MILITARY PERSONNEL 

MILITARY PERSONNEL, ARMY

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

$8,853,350,000. 

MILITARY PERSONNEL, NAVY

For an additional amount for ‘‘Military Personnel, Navy’’, $1,100,410,000. 

MILITARY PERSONNEL, MARINE CORPS

For an additional amount for ‘‘Military Personnel, Marine Corps’’, $1,495,827,000. 

MILITARY PERSONNEL, AIR FORCE

For an additional amount for ‘‘Military Personnel, Air Force’’, 

$1,218,587,000. 

RESERVE PERSONNEL, ARMY

For an additional amount for ‘‘Reserve Personnel, Army’’, $147,244,000. 

RESERVE PERSONNEL, NAVY

For an additional amount for ‘‘Reserve Personnel, Navy’’, 

$86,023,000. 

RESERVE PERSONNEL, MARINE CORPS

For an additional amount for ‘‘Reserve Personnel, Marine 

Corps’’, $5,660,000. 

RESERVE PERSONNEL, AIR FORCE

For an additional amount for ‘‘Reserve Personnel, Air Force’’, 

$11,573,000. 

NATIONAL GUARD PERSONNEL, ARMY

For an additional amount for ‘‘National Guard Personnel, 

Army’’, $545,286,000. 
H. R. 1591—4

NATIONAL GUARD PERSONNEL, AIR FORCE

For an additional amount for ‘‘National Guard Personnel, Air 

Force’’, $44,033,000. 

OPERATION AND MAINTENANCE 

OPERATION AND MAINTENANCE, ARMY

For an additional amount for ‘‘Operation and Maintenance, 

Army’’, $20,373,379,000. 

OPERATION AND MAINTENANCE, NAVY

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Operation and Maintenance, 

Navy’’, $4,676,670,000, of which up to $120,293,000 shall be transferred to Coast Guard, ‘‘Operating Expenses’’, for reimbursement 

for activities which support activities requested by the Navy. 

OPERATION AND MAINTENANCE, MARINE CORPS

For an additional amount for ‘‘Operation and Maintenance, 

Marine Corps’’, $1,146,594,000. 

OPERATION AND MAINTENANCE, AIR FORCE

For an additional amount for ‘‘Operation and Maintenance, 

Air Force’’, $6,650,881,000. 

OPERATION AND MAINTENANCE, DEFENSE-WIDE

For an additional amount for ‘‘Operation and Maintenance, 

Defense-Wide’’, $2,714,487,000, of which— 

(1) not to exceed $25,000,000 may be used for the Combatant Commander Initiative Fund, to be used in support of Operation Iraqi Freedom and Operation Enduring Freedom; and 

(2) not to exceed $200,000,000, to remain available until 

expended, may be used for payments to reimburse Pakistan, 

Jordan, and other key cooperating nations, for logistical, military, and other support provided to United States military 

operations, notwithstanding any other provision of law: Provided, That such payments may be made in such amounts 

as the Secretary of Defense, with the concurrence of the Secretary of State, and in consultation with the Director of the 

Office of Management and Budget, may determine, in his 

discretion, based on documentation determined by the Secretary 

of Defense to adequately account for the support provided, 

and such determination is final and conclusive upon the 

accounting officers of the United States, and 15 days following 

notification to the appropriate congressional committees: Provided further, That the Secretary of Defense shall provide quarterly reports to the congressional defense committees on the 

use of funds provided in this paragraph. 
H. R. 1591—5

OPERATION AND MAINTENANCE, ARMY RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Army Reserve’’, $74,049,000. 

OPERATION AND MAINTENANCE, NAVY RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Navy Reserve’’, $111,066,000. 

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

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

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Air Force Reserve’’, $10,160,000. 

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For an additional amount for ‘‘Operation and Maintenance, 

Army National Guard’’, $83,569,000. 

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For an additional amount for ‘‘Operation and Maintenance, 

Air National Guard’’, $38,429,000. 

AFGHANISTAN SECURITY FORCES FUND

For an additional amount for ‘‘Afghanistan Security Forces 

Fund’’, $5,906,400,000, to remain available until September 30, 

2008. 

IRAQ SECURITY FORCES FUND

For an additional amount for ‘‘Iraq Security Forces Fund’’, 

$3,842,300,000, to remain available until September 30, 2008. 

IRAQ FREEDOM FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Iraq Freedom Fund’’, $355,600,000, to remain available for transfer until September 30, 

2008: Provided, That up to $50,000,000 may be obligated and 

expended for purposes of the Task Force to Improve Business and 

Stability Operations in Iraq. 

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

For an additional amount for ‘‘Joint Improvised Explosive Device Defeat Fund’’, $2,432,800,000, to remain available until September 30, 2009. 
H. R. 1591—6

STRATEGIC RESERVE READINESS FUND

(INCLUDING TRANSFER OF FUNDS)

In addition to amounts provided in this or any other Act, 

for training, operations, repair of equipment, purchases of equipment, and other expenses related to improving the readiness of 

non-deployed United States military forces, $2,000,000,000, to 

remain available until September 30, 2009; of which $1,000,000,000 

shall be transferred to ‘‘National Guard and Reserve Equipment’’ 

for the purchase of equipment for the Army National Guard; and 

of which $1,000,000,000 shall be transferred by the Secretary of 

Defense only to appropriations for military personnel, operation 

and maintenance, procurement, and defense working capital funds 

to accomplish the purposes provided herein: Provided, That the 

funds transferred shall be merged with and shall be available 

for the same purposes and for the same time period as the appropriation to which transferred: Provided further, That the Secretary 

of Defense shall, not fewer than thirty days prior to making transfers under this authority, notify the congressional defense committees in writing of the details of any such transfers made pursuant 

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

to the appropriation accounts not later than 120 days after the 

enactment of this Act: Provided further, That the transfer authority 

provided in this paragraph is in addition to any other transfer 

authority available to the Department of Defense: Provided further,

That upon a determination that all or part of the funds transferred 

from this appropriation are not necessary for the purposes provided 

herein, such amounts may be transferred back to this appropriation. 

PROCUREMENT 

AIRCRAFT PROCUREMENT, ARMY

For an additional amount for ‘‘Aircraft Procurement, Army’’, $619,750,000, to remain available until September 30, 2009. 

MISSILE PROCUREMENT, ARMY

For an additional amount for ‘‘Missile Procurement, Army’’, 

$111,473,000, to remain available until September 30, 2009. 

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, 

ARMY

For an additional amount for ‘‘Procurement of Weapons and 

Tracked Combat Vehicles, Army’’, $3,404,315,000, to remain available until September 30, 2009. 

PROCUREMENT OF AMMUNITION, ARMY

For an additional amount for ‘‘Procurement of Ammunition, 

Army’’, $681,500,000, to remain available until September 30, 2009. 

OTHER PROCUREMENT, ARMY

For an additional amount for ‘‘Other Procurement, Army’’, $11,076,137,000, to remain available until September 30, 2009. 
H. R. 1591—7

AIRCRAFT PROCUREMENT, NAVY

For an additional amount for ‘‘Aircraft Procurement, Navy’’, 

$1,090,287,000, to remain available until September 30, 2009. 

WEAPONS PROCUREMENT, NAVY

For an additional amount for ‘‘Weapons Procurement, Navy’’, 

$163,813,000, to remain available until September 30, 2009. 

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For an additional amount for ‘‘Procurement of Ammunition, 

Navy and Marine Corps’’, $159,833,000, to remain available until 

September 30, 2009. 

OTHER PROCUREMENT, NAVY

For an additional amount for ‘‘Other Procurement, Navy’’, 

$748,749,000, to remain available until September 30, 2009. 

PROCUREMENT, MARINE CORPS

For an additional amount for ‘‘Procurement, Marine Corps’’, 

$2,252,749,000, to remain available until September 30, 2009. 

AIRCRAFT PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Aircraft Procurement, Air Force’’, 

$2,106,468,000, to remain available until September 30, 2009. 

MISSILE PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Missile Procurement, Air Force’’, 

$94,900,000, to remain available until September 30, 2009. 

PROCUREMENT OF AMMUNITION, AIR FORCE

For an additional amount for ‘‘Procurement of Ammunition, 

Air Force’’, $6,000,000, to remain available until September 30, 

2009. 

OTHER PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Other Procurement, Air Force’’, 

$2,096,200,000, to remain available until September 30, 2009. 

PROCUREMENT, DEFENSE-WIDE

For an additional amount for ‘‘Procurement, Defense-Wide’’, 

$980,050,000, to remain available until September 30, 2009. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For an additional amount for ‘‘Research, Development, Test 

and Evaluation, Army’’, $100,006,000, to remain available until 

September 30, 2008. 
H. R. 1591—8

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For an additional amount for ‘‘Research, Development, Test 

and Evaluation, Navy’’, $298,722,000, to remain available until 

September 30, 2008. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For an additional amount for ‘‘Research, Development, Test 

and Evaluation, Air Force’’, $187,176,000, to remain available until 

September 30, 2008. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For an additional amount for ‘‘Research, Development, Test 

and Evaluation, Defense-Wide’’, $512,804,000, to remain available 

until September 30, 2008. 

REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

For an additional amount for ‘‘Defense Working Capital Funds’’, 

$1,315,526,000. 

NATIONAL DEFENSE SEALIFT FUND

For an additional amount for ‘‘National Defense Sealift Fund’’, 

$5,000,000. 

OTHER DEPARTMENT OF DEFENSE PROGRAMS 

DEFENSE HEALTH PROGRAM

For an additional amount for ‘‘Defense Health Program’’, 

$3,251,853,000; of which $2,802,153,000 shall be for operation and 

maintenance, including $600,000,000 which shall be available for 

the treatment of Traumatic Brain Injury and Post Traumatic Stress 

Disorder and remain available until September 30, 2008; of which 

$118,000,000 shall be for procurement, to remain available until 

September 30, 2009; and of which $331,700,000 shall be for 

research, development, test and evaluation, to remain available 

until September 30, 2008: Provided, That if the Secretary of Defense 

determines that funds made available herein for the treatment 

of Traumatic Brain Injury and Post Traumatic Stress Disorder 

are in excess to the requirements of the Department of Defense 

he may transfer amounts in excess of that requirement to the 

Department of Veterans Affairs to be available only for the same 

purpose. 

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

For an additional amount for ‘‘Drug Interdiction and CounterDrug Activities, Defense’’, $254,665,000, to remain available until 

expended. 
H. R. 1591—9

RELATED AGENCIES 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

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

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1301. Appropriations provided in this chapter are available 

for obligation until September 30, 2007, unless otherwise provided 

in this chapter. 

(TRANSFER OF FUNDS)

SEC. 1302. Upon his determination that such action is necessary 

in the national interest, the Secretary of Defense may transfer 

between appropriations up to $3,500,000,000 of the funds made 

available to the Department of Defense in this chapter: Provided,

That the Secretary shall notify the Congress promptly of each 

transfer made pursuant to the authority in this section: Provided 

further, That the authority provided in this section is in addition 

to any other transfer authority available to the Department of 

Defense and is subject to the same terms and conditions as the 

authority provided in section 8005 of the Department of Defense 

Appropriations Act, 2007 (Public Law 109–289; 120 Stat. 1257), 

except for the fourth proviso: Provided further, That funds previously transferred to the ‘‘Joint Improvised Explosive Device Defeat 

Fund’’ and the ‘‘Iraq Security Forces Fund’’ under the authority 

of section 8005 of Public Law 109–289 and transferred back to 

their source appropriations accounts shall not be taken into account 

for purposes of the limitation on the amount of funds that may 

be transferred under section 8005. 

SEC. 1303. Funds appropriated in this chapter, or made available by the transfer of funds in or pursuant to this chapter, for 

intelligence activities are deemed to be specifically authorized by 

the Congress for purposes of section 504(a)(1) of the National Security Act of 1947 (50 U.S.C. 414(a)(1)). 

SEC. 1304. None of the funds provided in this chapter may 

be used to finance programs or activities denied by Congress in 

fiscal years 2006 or 2007 appropriations to the Department of 

Defense or to initiate a procurement or research, development, 

test and evaluation new start program without prior written 

notification to the congressional defense committees. 

(TRANSFER OF FUNDS)

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

may transfer not to exceed $6,300,000 of the amounts in or credited 

to the Defense Cooperation Account, pursuant to 10 U.S.C. 2608, 

to such appropriations or funds of the Department of Defense as 

he shall determine for use consistent with the purposes for which 

such funds were contributed and accepted: Provided, That such 

amounts shall be available for the same time period as the appropriation to which transferred: Provided further, That the Secretary 

shall report to the Congress all transfers made pursuant to this 

authority. 
H. R. 1591—10

SEC. 1306. (a) AUTHORITY TO PROVIDE SUPPORT.—Of the 

amount appropriated by this chapter under the heading, ‘‘Drug 

Interdiction and Counter-Drug Activities, Defense’’, not to exceed 

$60,000,000 may be used for support for counter-drug activities 

of the Governments of Afghanistan and Pakistan: Provided, That 

such support shall be in addition to support provided for the 

counter-drug activities of such Governments under any other provision of the law. 

(b) TYPES OF SUPPORT.—

(1) Except as specified in subsection (b)(2) of this section, 

the support that may be provided under the authority in this 

section shall be limited to the types of support specified in 

section 1033(c)(1) of the National Defense Authorization Act 

for Fiscal Year 1998 (Public Law 105–85, as amended by Public 

Laws 106–398, 108–136, and 109–364) and conditions on the 

provision of support as contained in section 1033 shall apply 

for fiscal year 2007. 

(2) The Secretary of Defense may transfer vehicles, aircraft, 

and detection, interception, monitoring and testing equipment 

to said Governments for counter-drug activities. 

SEC. 1307. (a) From funds made available for operation and 

maintenance in this chapter to the Department of Defense, not 

to exceed $456,400,000 may be used, notwithstanding any other 

provision of law, to fund the Commanders’ Emergency Response 

Program, for the purpose of enabling military commanders in Iraq 

and Afghanistan to respond to urgent humanitarian relief and 

reconstruction requirements within their areas of responsibility by 

carrying out programs that will immediately assist the Iraqi and 

Afghan people. 

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

end of each fiscal year quarter, the Secretary of Defense shall 

submit to the congressional defense committees a report regarding 

the source of funds and the allocation and use of funds during 

that quarter that were made available pursuant to the authority 

provided in this section or under any other provision of law for 

the purposes of the programs under subsection (a). 

SEC. 1308. Section 9010 of division A of Public Law 109–

289 is amended by striking ‘‘2007’’ each place it appears and 

inserting ‘‘2008’’. 

SEC. 1309. During fiscal year 2007, supervision and administration costs associated with projects carried out with funds appropriated to ‘‘Afghanistan Security Forces Fund’’ or ‘‘Iraq Security 

Forces Fund’’ in this chapter may be obligated at the time a 

construction contract is awarded: Provided, That for the purpose 

of this section, supervision and administration costs include all 

in-house Government costs. 

SEC. 1310. Section 1005(c)(2) of the National Defense Authorization Act, Fiscal Year 2007 (Public Law 109–364) is amended by 

striking ‘‘$310,277,000’’ and inserting ‘‘$376,446,000’’. 

SEC. 1311. None of the funds appropriated or otherwise made 

available by this or any other Act shall be obligated or expended 

by the United States Government for a purpose as follows: 

(1) To establish any military installation or base for the 

purpose of providing for the permanent stationing of United 

States Armed Forces in Iraq. 

(2) To exercise United States control over any oil resource 

of Iraq. 
H. R. 1591—11

SEC. 1312. None of the funds made available in this Act may 

be used in contravention of the following laws enacted or regulations 

promulgated to implement the United Nations Convention Against 

Torture and Other Cruel, Inhuman or Degrading Treatment or 

Punishment (done at New York on December 10, 1984)—

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

(2) section 2242 of the Foreign Affairs Reform and Restructuring Act of 1998 (division G of Public Law 105–277; 112 

Stat. 2681–822; 8 U.S.C. 1231 note) and regulations prescribed 

thereto, including regulations under part 208 of title 8, Code 

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

Regulations; and 

(3) sections 1002 and 1003 of the Department of Defense, 

Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 

2006 (Public Law 109–148). 

SEC. 1313. (a) REPORT BY SECRETARY OF DEFENSE.—Not later 

than 30 days after the date of the enactment of this Act, the 

Secretary of Defense shall submit to the congressional defense 

committees a report that contains individual transition readiness 

assessments by unit of Iraq and Afghan security forces. The Secretary of Defense shall submit to the congressional defense committees updates of the report required by this subsection every 90 

days after the date of the submission of the report until October 

1, 2008. The report and updates of the report required by this 

subsection shall be submitted in classified form. 

(b) REPORT BY OMB.—

(1) The Director of the Office of Management and Budget, 

in consultation with the Secretary of Defense; the Commander, 

Multi-National Security Transition Command—Iraq; and the 

Commander, Combined Security Transition Command—

Afghanistan, shall submit to the congressional defense committees not later than 120 days after the date of the enactment 

of this Act and every 90 days thereafter a report on the proposed 

use of all funds under each of the headings ‘‘Iraq Security 

Forces Fund’’ and ‘‘Afghanistan Security Forces Fund’’ on a 

project-by-project basis, for which the obligation of funds is 

anticipated during the three-month period from such date, 

including estimates by the commanders referred to in this 

paragraph of the costs required to complete each such project. 

(2) The report required by this subsection shall include 

the following: 

(A) The use of all funds on a project-by-project basis 

for which funds appropriated under the headings referred 

to in paragraph (1) were obligated prior to the submission 

of the report, including estimates by the commanders 

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

project. 

(B) The use of all funds on a project-by-project basis 

for which funds were appropriated under the headings 

referred to in paragraph (1) in prior appropriations Acts, 

or for which funds were made available by transfer, reprogramming, or allocation from other headings in prior 

appropriations Acts, including estimates by the commanders referred to in paragraph (1) of the costs to complete each project. 
H. R. 1591—12

(C) An estimated total cost to train and equip the 

Iraq and Afghan security forces, disaggregated by major 

program and sub-elements by force, arrayed by fiscal year. 

(c) NOTIFICATION.—The Secretary of Defense shall notify the 

congressional defense committees of any proposed new projects or 

transfers of funds between sub-activity groups in excess of 

$15,000,000 using funds appropriated by this Act under the 

headings ‘‘Iraq Security Forces Fund’’ and ‘‘Afghanistan Security 

Forces Fund’’. 

SEC. 1314. None of the funds appropriated or otherwise made 

available by this chapter may be obligated or expended to provide 

award fees to any defense contractor contrary to the provisions 

of section 814 of the National Defense Authorization Act, Fiscal 

Year 2007 (Public Law 109–364). 

SEC. 1315. Not more than 85 percent of the funds appropriated 

in this chapter for operation and maintenance shall be available 

for obligation unless and until the Secretary of Defense submits 

to the congressional defense committees a report detailing the use 

of Department of Defense funded service contracts conducted in 

the theater of operations in support of United States military and 

reconstruction activities in Iraq and Afghanistan: Provided, That 

the report shall provide detailed information specifying the number 

of contracts and contract costs used to provide services in fiscal 

year 2006, with sub-allocations by major service categories: Provided 

further, That the report also shall include estimates of the number 

of contracts to be executed in fiscal year 2007: Provided further,

That the report shall include the number of contractor personnel 

in Iraq and Afghanistan funded by the Department of Defense: 

Provided further, That the report shall be submitted to the congressional defense committees not later than August 1, 2007. 

SEC. 1316. Section 1477 of title 10, United States Code, is 

amended—

(1) in subsection (a), by striking ‘‘A death gratuity’’ and 

inserting ‘‘Subject to subsection (d), a death gratuity’’; 

(2) by redesignating subsection (d) as subsection (e) and, 

in such subsection, by striking ‘‘If an eligible survivor dies 

before he’’ and inserting ‘‘If a person entitled to all or a portion 

of a death gratuity under subsection (a) or (d) dies before 

the person’’; and 

(3) by inserting after subsection (c) the following new subsection (d): 

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

of this subsection and ending on September 30, 2007, a person 

covered by section 1475 or 1476 of this title may designate another 

person to receive not more than 50 percent of the amount payable 

under section 1478 of this title. The designation shall indicate 

the percentage of the amount, to be specified only in 10 percent 

increments up to the maximum of 50 percent, that the designated 

person may receive. The balance of the amount of the death gratuity 

shall be paid to or for the living survivors of the person concerned 

in accordance with paragraphs (1) through (5) of subsection (a).’’. 

SEC. 1317. Section 9007 of Public Law 109–289 is amended 

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

SEC. 1318. INSPECTION OF MILITARY MEDICAL TREATMENT

FACILITIES, MILITARY QUARTERS HOUSING MEDICAL HOLD PERSONNEL, AND MILITARY QUARTERS HOUSING MEDICAL HOLDOVER

PERSONNEL. (a) PERIODIC INSPECTION REQUIRED.—
H. R. 1591—13

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

of the enactment of this Act, and annually thereafter, the 

Secretary of Defense shall inspect each facility of the Department of Defense as follows: 

(A) Each military medical treatment facility. 

(B) Each military quarters housing medical hold personnel. 

(C) Each military quarters housing medical holdover 

personnel. 

(2) PURPOSE.—The purpose of an inspection under this 

subsection is to ensure that the facility or quarters concerned 

meets acceptable standards for the maintenance and operation 

of medical facilities, quarters housing medical hold personnel, 

or quarters housing medical holdover personnel, as applicable. 

(b) ACCEPTABLE STANDARDS.—For purposes of this section, 

acceptable standards for the operation and maintenance of military 

medical treatment facilities, military quarters housing medical hold 

personnel, or military quarters housing medical holdover personnel 

are each of the following: 

(1) Generally accepted standards for the accreditation of 

medical facilities, or for facilities used to quarter individuals 

with medical conditions that may require medical supervision, 

as applicable, in the United States. 

(2) Where appropriate, standards under the Americans with 

Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). 

(c) ADDITIONAL INSPECTIONS ON IDENTIFIED DEFICIENCIES.—

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

pursuant to subsection (a) at a facility or quarters described 

in paragraph (1) of that subsection—

(A) the commander of such facility or quarters, as 

applicable, shall submit to the Secretary a detailed plan 

to correct the deficiency; and 

(B) the Secretary shall reinspect such facility or quarters, as applicable, not less often than once every 180 

days until the deficiency is corrected. 

(2) CONSTRUCTION WITH OTHER INSPECTIONS.—An inspection of a facility or quarters under this subsection is in addition 

to any inspection of such facility or quarters under subsection 

(a). 

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

on each inspection conducted under subsections (a) and (c) shall 

be submitted in unclassified form to the applicable military medical 

command and to the congressional defense committees. 

(e) REPORT ON STANDARDS.—In the event no standards for 

the maintenance and operation of military medical treatment facilities, military quarters housing medical hold personnel, or military 

quarters housing medical holdover personnel exist as of the date 

of the enactment of this Act, or such standards as do exist do 

not meet acceptable standards for the maintenance and operation 

of such facilities or quarters, as the case may be, the Secretary 

shall, not later than 30 days after that date, submit to the congressional defense committees a report setting forth the plan of the 

Secretary to ensure—
H. R. 1591—14

(1) the adoption by the Department of standards for the 

maintenance and operation of military medical facilities, military quarters housing medical hold personnel, or military quarters housing medical holdover personnel, as applicable, that 

meet—

(A) acceptable standards for the maintenance and operation of such facilities or quarters, as the case may be; 

and 

(B) where appropriate, standards under the Americans 

with Disabilities Act of 1990; and 

(2) the comprehensive implementation of the standards 

adopted under paragraph (1) at the earliest date practicable. 

SEC. 1319. From funds made available for the ‘‘Iraq Security 

Forces Fund’’ for fiscal year 2007, up to $155,500,000 may be 

used, notwithstanding any other provision of law, to provide assistance, with the concurrence of the Secretary of State, to the Government of Iraq to support the disarmament, demobilization, and reintegration of militias and illegal armed groups. 

SEC. 1320. INDEPENDENT ASSESSMENT OF CAPABILITIES OF IRAQI

SECURITY FORCES. (a) IN GENERAL.—Of the amount appropriated 

or otherwise made available for the Department of Defense, 

$750,000 is provided to commission an independent, private-sector 

entity, which operates as a 501(c)(3) with recognized credentials 

and expertise in military affairs, to prepare an independent report 

assessing the following: 

(1) The readiness of the Iraqi Security Forces (ISF) to 

assume responsibility for maintaining the territorial integrity 

of Iraq, denying international terrorists a safe haven, and 

bringing greater security to Iraq’s 18 provinces in the next 

12–18 months, and bringing an end to sectarian violence to 

achieve national reconciliation. 

(2) The training; equipping; command, control and intelligence capabilities; and logistics capacity of the ISF. 

(3) The likelihood that, given the ISF’s record of preparedness to date, following years of training and equipping by 

U.S. forces, the continued support of U.S. troops will contribute 

to the readiness of the ISF to fulfill the missions outlined 

in subparagraph (1). 

(b) REPORT.—Not later than 120 days after passage of this 

Act, the designated private sector entity shall provide an unclassified report, with a classified annex, containing its findings, to the 

House and Senate Committees on Armed Services, Appropriations, 

Foreign Relations, and Intelligence. 

SEC. 1321. AWARD OF MEDAL OF HONOR TO WOODROW W. 

KEEBLE FOR VALOR DURING KOREAN WAR. (a) WAIVER OF TIME

LIMITATIONS.—Notwithstanding any applicable time limitation 

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

time limitation with respect to the award of certain medals to 

individuals who served in the Armed Forces, the President may 

award to Woodrow W. Keeble the Medal of Honor under section 

3741 of that title for the acts of valor described in subsection 

(b). 

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

(a) are the acts of Woodrow W. Keeble, then-acting platoon leader, 

carried out on October 20, 1951, during the Korean War. 
H. R. 1591—15

(TRANSFER OF FUNDS)

SEC. 1322. Of the amount appropriated under the heading 

‘‘Other Procurement, Army’’, in title III of division A of Public 

Law 109–148, $6,250,000 shall be transferred to ‘‘Military Construction, Army’’. 

(TRANSFER OF FUNDS)

SEC. 1323. Notwithstanding any other provision of law, not 

to exceed $110,000,000 may be transferred to the ‘‘Economic Support 

Fund’’, Department of State, for use in programs in Pakistan from 

amounts appropriated by this Act as follows: 

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

‘‘National Guard Personnel, Army’’, $13,183,000. 

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

CHAPTER 4

DEPARTMENT OF ENERGY 

ATOMIC ENERGY DEFENSE ACTIVITIES 

NATIONAL NUCLEAR SECURITY ADMINISTRATION

DEFENSE NUCLEAR NONPROLIFERATION

For an additional amount for ‘‘Defense Nuclear Nonproliferation’’, $150,000,000, to remain available until expended. 

GENERAL PROVISION—THIS CHAPTER 

(TRANSFER OF FUNDS)

SEC. 1401. The Administrator of the National Nuclear Security 

Administration is authorized to transfer up to $1,000,000 from 

Defense Nuclear Nonproliferation to the Office of the Administrator 

during fiscal year 2007 supporting nuclear nonproliferation activities. 

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY 

ANALYSIS AND OPERATIONS

For an additional amount for ‘‘Analysis and Operations’’, 

$15,000,000, to remain available until September 30, 2008, to be 

used for support of the State and Local Fusion Center program. 

UNITED STATES CUSTOMS AND BORDER PROTECTION

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Salaries and Expenses’’, $115,000,000, to remain available until September 30, 2008, to 

be used to increase the number of officers, intelligence analysts 

and support staff responsible for container security inspections, 
H. R. 1591—16

and for other efforts to improve supply chain security: Provided, 

That up to $5,000,000 shall be transferred to Federal Law Enforcement Training Center ‘‘Salaries and Expenses’’, for basic training 

costs. 

AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND

PROCUREMENT

For an additional amount for ‘‘Air and Marine Interdiction, 

Operations, Maintenance, and Procurement’’, for air and marine 

operations on the Northern Border, including the final Northern 

Border air wing, $120,000,000, to remain available until September 

30, 2008. 

UNITED STATES IMMIGRATION AND CUSTOMS ENFORCEMENT

SALARIES AND EXPENSES

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

$10,000,000, to remain available until September 30, 2008. 

TRANSPORTATION SECURITY ADMINISTRATION

AVIATION SECURITY

For an additional amount for ‘‘Aviation Security’’, $970,000,000; 

of which $815,000,000 shall be for procurement and installation 

of checked baggage explosives detection systems, to remain available 

until expended; of which $45,000,000 shall be for expansion of 

checkpoint explosives detection pilot systems, to remain available 

until expended; and of which $110,000,000 shall be for air cargo 

security, to remain available until September 30, 2009. 

FEDERAL AIR MARSHALS

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

$8,000,000, to remain available until September 30, 2008. 

NATIONAL PROTECTION AND PROGRAMS

INFRASTRUCTURE PROTECTION AND INFORMATION SECURITY

For an additional amount for ‘‘Infrastructure Protection and 

Information Security’’, $37,000,000, to remain available until September 30, 2008. 

OFFICE OF HEALTH AFFAIRS

For an additional amount for ‘‘Office of Health Affairs’’ for 

nuclear event public health assessment and planning and other 

activities, $15,000,000, to remain available until September 30, 

2008. 

FEDERAL EMERGENCY MANAGEMENT AGENCY

MANAGEMENT AND ADMINISTRATION

For expenses for management and administration of the Fed- eral Emergency Management Agency, $25,000,000, to remain available until September 30, 2008: Provided, That none of such funds 
H. R. 1591—17

made available under this heading may be obligated until the 

Committees on Appropriations of the Senate and the House of 

Representatives receive and approve a plan for expenditure: Provided further, That unobligated amounts in the ‘‘Administrative 

and Regional Operations’’ and ‘‘Readiness, Mitigation, Response, 

and Recovery’’ accounts shall be transferred to ‘‘Management and 

Administration’’ and may be used for any purpose authorized for 

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

STATE AND LOCAL PROGRAMS

For an additional amount for ‘‘State and Local Programs’’, 

$552,500,000; of which $190,000,000 shall be for port security grants 

pursuant to section 70107(l) of title 46, United States Code; of 

which $325,000,000 shall be for intercity rail passenger transportation, freight rail, and transit security grants; of which $35,000,000 

shall be for regional grants and regional technical assistance to 

high risk urban areas for catastrophic event planning and preparedness; and of which $2,500,000 shall be for technical assistance: 

Provided, That none of the funds made available under this heading 

may be obligated for such regional grants and regional technical 

assistance until the Committees on Appropriations of the Senate 

and the House of Representatives receive and approve a plan for 

expenditure: Provided further, That funds for such regional grants 

and regional technical assistance shall remain available until September 30, 2008. 

EMERGENCY MANAGEMENT PERFORMANCE GRANTS

For an additional amount for ‘‘Emergency Management 

Performance Grants’’, $100,000,000. 

UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES

For an additional amount for expenses of ‘‘United States Citizenship and Immigration Services’’ to address backlogs of security 

checks associated with pending applications and petitions, 

$10,000,000, to remain available until September 30, 2008: Provided, That none of the funds made available under this heading 

shall be available for obligation until the Secretary of Homeland 

Security, in consultation with the United States Attorney General, 

submits to the Committees on Appropriations of the Senate and 

the House of Representatives a plan to eliminate the backlog of 

security checks that establishes information sharing protocols to 

ensure United States Citizenship and Immigration Services has 

the information it needs to carry out its mission. 

SCIENCE AND TECHNOLOGY

RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

For an additional amount for ‘‘Research, Development, Acquisition, and Operations’’ for air cargo security research, $10,000,000, 

to remain available until expended. 
H. R. 1591—18

DOMESTIC NUCLEAR DETECTION OFFICE

RESEARCH, DEVELOPMENT, AND OPERATIONS

For an additional amount for ‘‘Research, Development, and 

Operations’’ for non-container, rail, aviation and intermodal radiation detection activities, $39,000,000, to remain available until 

expended. 

SYSTEMS ACQUISITION

For an additional amount for ‘‘Systems Acquisition’’, $223,500,000, to remain available until expended: Provided, That 

none of the funds appropriated under this heading shall be obligated 

for full scale procurement of Advanced Spectroscopic Portal Monitors until the Secretary of Homeland Security has certified through 

a report to the Committees on Appropriations of the Senate and 

the House of Representatives that a significant increase in operational effectiveness will be achieved. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1501. (a) AMENDMENTS.—Section 550 of the Department 

of Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note) 

is amended by—

(1) in subsection (c), by striking ‘‘consistent with similar’’ 

and inserting ‘‘identical to the protections given’’; 

(2) in subsection (c), by striking ‘‘, site security plans, 

and other information submitted to or obtained by the Secretary 

under this section, and related vulnerability or security 

information, shall be treated as if the information were classified material’’ and inserting ‘‘and site security plans shall be 

treated as sensitive security information (as that term is used 

in section 1520.5 of title 49, Code of Federal Regulations, or 

any subsequent regulations relating to the same matter)’’; and 

(3) by adding at the end of the section the following: 

‘‘(h) This section shall not preclude or deny any right of any 

State or political subdivision thereof to adopt or enforce any regulation, requirement, or standard of performance with respect to chemical facility security that is more stringent than a regulation, 

requirement, or standard of performance issued under this section, 

or otherwise impair any right or jurisdiction of any State with 

respect to chemical facilities within that State.’’. 

(b) REGULATORY CLARIFICATION.—Not later than 60 days after 

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

Security shall update the regulations administered by the Secretary 

that govern sensitive security information, including 49 CFR 1520, 

to ensure the protection of all information required to be protected 

under section 550(c) of the Department of Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note), as amended by paragraph 

(a). 

SEC. 1502. None of the funds provided in this Act, or Public 

Law 109–295, shall be available to carry out section 872 of Public 

Law 107–296. 

SEC. 1503. LINKING OF AWARD FEES UNDER DEPARTMENT OF

HOMELAND SECURITY CONTRACTS TO SUCCESSFUL ACQUISITION OUTCOMES. The Secretary of Homeland Security shall require that 

all contracts of the Department of Homeland Security that provide 
H. R. 1591—19

award fees link such fees to successful acquisition outcomes (which 

outcomes shall be specified in terms of cost, schedule, and performance). 

CHAPTER 6

LEGISLATIVE BRANCH 

HOUSE OF REPRESENTATIVES 

SALARIES AND EXPENSES

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

$6,437,000, as follows: 

ALLOWANCES AND EXPENSES

For an additional amount for allowances and expenses as 

authorized by House resolution or law, $6,437,000 for business 

continuity and disaster recovery, to remain available until 

expended. 

GOVERNMENT ACCOUNTABILITY OFFICE 

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ of the 

Government Accountability Office, $374,000, to remain available 

until September 30, 2008. 

CHAPTER 7

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION, ARMY

For an additional amount for ‘‘Military Construction, Army’’, 

$1,255,890,000, to remain available until September 30, 2008: Provided, That notwithstanding any other provision of law, such funds 

may be obligated and expended to carry out planning and design 

and military construction projects not otherwise authorized by law: 

Provided further, That of the funds provided under this heading, 

not to exceed $173,700,000 shall be available for study, planning, 

design, and architect and engineer services: Provided further, That 

of the funds made available under this heading, $369,690,000 shall 

not be obligated or expended until the Secretary of Defense submits 

a detailed report explaining how military road construction is coordinated with NATO and coalition nations: Provided further, That 

of the funds made available under this heading, $401,700,000 shall 

not be obligated or expended until the Secretary of Defense submits 

a detailed stationing plan to support Army end-strength growth 

to the Committees on Appropriations of the House of Representatives and Senate: Provided further, That of the funds provided 

under this heading, $274,800,000 shall not be obligated or expended 

until the Secretary of Defense certifies that none of the funds 

are to be used for the purpose of providing facilities for the permanent basing of United States military personnel in Iraq. 
H. R. 1591—20

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

For an additional amount for ‘‘Military Construction, Navy 

and Marine Corps’’, $370,990,000, to remain available until September 30, 2008: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry 

out planning and design and military construction projects not 

otherwise authorized by law: Provided further, That of the funds 

provided under this heading, not to exceed $49,600,000 shall be 

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

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

this heading, $324,270,000 shall not be obligated or expended until 

the Secretary of Defense submits a detailed stationing plan to 

support Marine Corps end-strength growth to the Committees on 

Appropriations of the House of Representatives and Senate. 

MILITARY CONSTRUCTION, AIR FORCE

For an additional amount for ‘‘Military Construction, Air Force’’, $43,300,000, to remain available until September 30, 2008: Provided, That notwithstanding any other provision of law, such funds 

may be obligated and expended to carry out planning and design 

and military construction projects not otherwise authorized by law: 

Provided further, That of the funds provided under this heading, not to exceed $3,000,000 shall be available for study, planning, 

design, and architect and engineer services. 

DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005

For deposit into the Department of Defense Base Closure 

Account 2005, established by section 2906A(a)(1) of the Defense 

Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), 

$3,136,802,000, to remain available until expended: Provided, That 

within 30 days of the enactment of this Act, the Secretary of 

Defense shall submit a detailed spending plan to the Committees 

on Appropriations of the House of Representatives and Senate. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1701. Notwithstanding any other provision of law, none 

of the funds in this or any other Act may be used to close Walter 

Reed Army Medical Center until equivalent medical facilities at 

the Walter Reed National Military Medical Center at Naval Medical 

Center, Bethesda, Maryland, and/or the Fort Belvoir, Virginia, 

Community Hospital have been constructed and equipped: Provided,

That to ensure that the quality of care provided by the Military 

Health System is not diminished during this transition, the Walter 

Reed Army Medical Center shall be adequately funded, to include 

necessary renovation and maintenance of existing facilities, to maintain the maximum level of inpatient and outpatient services. 

SEC. 1702. Notwithstanding any other provision of law, none 

of the funds in this or any other Act shall be used to reorganize 

or relocate the functions of the Armed Forces Institute of Pathology 

(AFIP) until the Secretary of Defense has submitted, not later 

than December 31, 2007, a detailed plan and timetable for the 

proposed reorganization and relocation to the Committees on Appropriations and Armed Services of the Senate and House of Representatives. The plan shall take into consideration the recommendations 
H. R. 1591—21

of a study being prepared by the Government Accountability Office 

(GAO), provided that such study is available not later than 45 

days before the date specified in this section, on the impact of 

dispersing selected functions of AFIP among several locations, and 

the possibility of consolidating those functions at one location. The 

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

operation of the Program Management Office for second opinion 

consults that are consistent with the recommendations of the Base 

Realignment and Closure Commission, together with the rationale 

for the option selected by the Secretary. 

CHAPTER 8

DEPARTMENT OF STATE AND RELATED AGENCY 

DEPARTMENT OF STATE 

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Diplomatic and Consular Programs’’, $870,658,000, to remain available until September 30, 2008, 

of which $96,500,000 for World Wide Security Upgrades is available 

until expended: Provided, That of the funds appropriated under 

this heading, not more than $20,000,000 shall be made available 

for public diplomacy programs: Provided further, That prior to the 

obligation of funds pursuant to the previous proviso, the Secretary 

of State shall submit a report to the Committees on Appropriations 

describing a comprehensive public diplomacy strategy, with goals 

and expected results, for fiscal years 2007 and 2008: Provided 

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

shall be transferred to, and merged with, funds available in fiscal 

year 2007 for expenses for the United States Commission on International Religious Freedom: Provided further, That 20 percent of 

the amount available for Iraq operations shall not be obligated 

until the Committees on Appropriations receive and approve a 

detailed plan for expenditure, prepared by the Secretary of State, 

and submitted within 60 days after the date of enactment of this 

Act: Provided further, That within 15 days of enactment of this 

Act, the Office of Management and Budget shall apportion 

$15,000,000 from amounts appropriated or otherwise made available by chapter 8 of title II of division B of Public Law 109–

148 under the heading ‘‘Emergencies in the Diplomatic and Consular Service’’ for emergency evacuations: Provided further, That 

of the amount made available under this heading for Iraq, not 

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

funds in the ‘‘Emergencies in the Diplomatic and Consular Service’’ 

appropriations account, to be available only for terrorism rewards. 

OFFICE OF THE INSPECTOR GENERAL

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Office of Inspector General’’, 

$36,500,000, to remain available until December 31, 2008: Provided,
H. R. 1591—22

That $35,000,000 shall be transferred to the Special Inspector General for Iraq Reconstruction for reconstruction oversight. 

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

For an additional amount for ‘‘Educational and Cultural 

Exchange Programs’’, $20,000,000, to remain available until 

expended. 

INTERNATIONAL ORGANIZATIONS

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

For an additional amount for ‘‘Contributions to International 

Organizations’’, $50,000,000, to remain available until September 

30, 2008. 

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

For an additional amount for ‘‘Contributions for International 

Peacekeeping Activities’’, $288,000,000, to remain available until 

September 30, 2008. 

RELATED AGENCY 

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

For an additional amount for ‘‘International Broadcasting Operations’’ for activities related to broadcasting to the Middle East, 

$10,000,000, to remain available until September 30, 2008. 

BILATERAL ECONOMIC ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Child Survival and Health Programs Fund’’, $161,000,000, to remain available until September 

30, 2008: Provided, That notwithstanding any other provision of 

law, if the President determines and reports to the Committees 

on Appropriations that the human-to-human transmission of the 

avian influenza virus is efficient and sustained, and is spreading 

internationally, funds made available under the heading ‘‘Millennium Challenge Corporation’’ and ‘‘Global HIV/AIDS Initiative’’ in 

prior Acts making appropriations for foreign operations, export 

financing, and related programs may be transferred to, and merged 

with, funds made available under this heading to combat avian 

influenza: Provided further, That funds made available pursuant 

to the authority of the previous proviso shall be subject to the 

regular notification procedures of the Committees on Appropriations. 
H. R. 1591—23

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

For an additional amount for ‘‘International Disaster and 

Famine Assistance’’, $165,000,000, to remain available until 

expended. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

For an additional amount for ‘‘Operating Expenses of the United States Agency for International Development’’, $8,700,000, to 

remain available until September 30, 2008. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Operating Expenses of the United 

States Agency for International Development Office of Inspector 

General’’, $3,500,000, to remain available until September 30, 2008. 

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

For an additional amount for ‘‘Economic Support Fund’’, $2,649,300,000, to remain available until September 30, 2008: Provided, That of the funds appropriated under this heading, $57,400,000 shall be made available to nongovernmental organizations in Iraq for economic and social development programs and 

activities in areas of conflict: Provided further, That the responsibility for policy decisions and justifications for the use of funds 

appropriated by the previous proviso shall be the responsibility 

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

That none of the funds appropriated under this heading in this 

Act or in prior Acts making appropriations for foreign operations, 

export financing, and related programs may be made available 

for the Political Participation Fund and the National Institutions 

Fund: Provided further, That of the funds made available under 

the heading ‘‘Economic Support Fund’’ in Public Law 109–234 for 

Iraq to promote democracy, rule of law and reconciliation, 

$2,000,000 should be made available for the United States Institute 

of Peace for programs and activities in Afghanistan to remain 

available until September 30, 2008. 

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

For an additional amount for ‘‘Assistance for Eastern Europe and the Baltic States’’, $229,000,000, to remain available until 

September 30, 2008, for assistance for Kosovo. 

DEPARTMENT OF STATE

DEMOCRACY FUND

For an additional amount for ‘‘Democracy Fund’’, $260,000,000, 

to remain available until September 30, 2008: Provided, That of 

the funds appropriated under this heading, not less than 

$190,000,000 shall be made available for the Human Rights and 

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

Labor, Department of State, and not less than $60,000,000 shall 
H. R. 1591—24

be made available for the United States Agency for International 

Development, for democracy, human rights and rule of law programs in Iraq: Provided further, That not later than 60 days after 

enactment of this Act, the Secretary of State shall submit a report 

to the Committees on Appropriations describing a comprehensive, 

long-term strategy, with goals and expected results, for strengthening and advancing democracy in Iraq. 

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

(INCLUDING RESCISSION OF FUNDS)

For an additional amount for ‘‘International Narcotics Control 

and Law Enforcement’’, $257,000,000, to remain available until 

September 30, 2008. 

Of the amounts made available for procurement of a maritime 

patrol aircraft for the Colombian Navy under this heading in Public 

Law 109–234, $13,000,000 are rescinded. 

MIGRATION AND REFUGEE ASSISTANCE

For an additional amount for ‘‘Migration and Refugee Assistance’’, $130,500,000, to remain available until September 30, 2008, 

of which not less than $5,000,000 shall be made available to rescue 

Iraqi scholars. 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

For an additional amount for ‘‘United States Emergency Refugee and Migration Assistance Fund’’, $55,000,000, to remain available until expended. 

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

For an additional amount for ‘‘Nonproliferation, Anti-Terrorism, 

Demining and Related Programs’’, $57,500,000, to remain available 

until September 30, 2008. 

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

For an additional amount for ‘‘International Affairs Technical 

Assistance’’, $2,750,000, to remain available until September 30, 

2008. 

MILITARY ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

For an additional amount for ‘‘Foreign Military Financing Program’’, $265,000,000, to remain available until September 30, 2008. 
H. R. 1591—25

PEACEKEEPING OPERATIONS

For an additional amount for ‘‘Peacekeeping Operations’’, $230,000,000, to remain available until September 30, 2008: Provided, That of the funds appropriated under this heading, not less than $40,000,000 shall be made available, notwithstanding 

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

for Liberia for security sector reform: Provided further, That not 

later than 30 days after enactment of this Act and every 30 days 

thereafter until September 30, 2008, the Secretary of State shall 

submit a report to the Committees on Appropriations detailing 

the obligation and expenditure of funds made available under this 

heading in this Act and in prior Acts making appropriations for 

foreign operations, export financing, and related programs. 

GENERAL PROVISIONS—THIS CHAPTER 

AUTHORIZATION OF FUNDS

SEC. 1801. Funds appropriated by this title may be obligated 

and expended notwithstanding section 10 of Public Law 91–672 

(22 U.S.C. 2412), section 15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680), section 313 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (22 U.S.C. 

6212), and section 504(a)(1) of the National Security Act of 1947 

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

EXTENSION OF OVERSIGHT AUTHORITY

SEC. 1802. Section 3001(o)(1)(B) of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction 

of Iraq and Afghanistan, 2004 (Public Law 108–106; 117 Stat. 

1238; 5 U.S.C. App., note to section 8G of Public Law 95–452), 

as amended by section 1054(b) of the John Warner National Defense 

Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 

Stat. 2397) and section 2 of the Iraq Reconstruction Accountability 

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

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

LEBANON

SEC. 1803. (a) LIMITATION ON ECONOMIC SUPPORT FUND ASSIST- ANCE FOR LEBANON.—None of the funds made available in this 

Act under the heading ‘‘Economic Support Fund’’ for cash transfer 

assistance for the Government of Lebanon may be made available 

for obligation until the Secretary of State reports to the Committees 

on Appropriations on Lebanon’s economic reform plan and on the 

specific conditions and verifiable benchmarks that have been agreed 

upon by the United States and the Government of Lebanon pursuant to the Memorandum of Understanding on cash transfer assistance for Lebanon. 

(b) LIMITATION ON FOREIGN MILITARY FINANCING PROGRAM AND

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

ASSISTANCE FOR LEBANON.— None of the funds made available 

in this Act under the heading ‘‘Foreign Military Financing Program’’ 

or ‘‘International Narcotics Control and Law Enforcement’’ for military or police assistance to Lebanon may be made available for 

obligation until the Secretary of State submits to the Committees 

on Appropriations a report on procedures established to determine 
H. R. 1591—26

eligibility of members and units of the armed forces and police 

forces of Lebanon to participate in United States training and 

assistance programs and on the end use monitoring of all equipment 

provided under such programs to the Lebanese armed forces and 

police forces. 

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

of funds made available in this Act for assistance for Lebanon 

under the headings ‘‘Foreign Military Financing Program’’ and 

‘‘Nonproliferation, Anti-Terrorism, Demining and Related Programs’’, the Secretary of State shall certify to the Committees 

on Appropriations that all practicable efforts have been made to 

ensure that such assistance is not provided to or through any 

individual, or private or government entity, that advocates, plans, 

sponsors, engages in, or has engaged in, terrorist activity. 

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

of the enactment of this Act, the Secretary of State shall submit 

to the Committees on Appropriations a report on the Government 

of Lebanon’s actions to implement section 14 of United Nations 

Security Council Resolution 1701 (August 11, 2006). 

(e) SPECIAL AUTHORITY.—This section shall be effective notwithstanding section 534(a) of Public Law 109–102, which is made 

applicable to funds appropriated for fiscal year 2007 by the Continuing Appropriations Resolution, 2007 (division B of Public Law 

109–289, as amended by Public Law 110–5). 

DEBT RESTRUCTURING

SEC. 1804. Amounts appropriated for fiscal year 2007 for 

‘‘Bilateral Economic Assistance—Department of the Treasury—Debt 

Restructuring’’ may be used to assist Liberia in retiring its debt 

arrearages to the International Monetary Fund, the International 

Bank for Reconstruction and Development, and the African Development Bank. 

GOVERNMENT ACCOUNTABILITY OFFICE

SEC. 1805. To facilitate effective oversight of programs and 

activities in Iraq by the Government Accountability Office (GAO), 

the Department of State shall provide GAO staff members the 

country clearances, life support, and logistical and security support 

necessary for GAO personnel to establish a presence in Iraq for 

periods of not less than 45 days. 

HUMAN RIGHTS AND DEMOCRACY FUND

SEC. 1806. The Assistant Secretary of State for Democracy, 

Human Rights, and Labor shall be responsible for all policy, 

funding, and programming decisions regarding funds made available under this Act and prior Acts making appropriations for foreign 

operations, export financing and related programs for the Human 

Rights and Democracy Fund of the Bureau of Democracy, Human 

Rights, and Labor. 

INSPECTOR GENERAL OVERSIGHT OF IRAQ AND AFGHANISTAN

SEC. 1807. (a) IN GENERAL.—Subject to paragraph (2), the 

Inspector General of the Department of State and the Broadcasting 

Board of Governors (referred to in this section as the ‘‘Inspector 

General’’) may use personal services contracts to engage citizens 
H. R. 1591—27

of the United States to facilitate and support the Office of the 

Inspector General’s oversight of programs and operations related 

to Iraq and Afghanistan. Individuals engaged by contract to perform 

such services shall not, by virtue of such contract, be considered 

to be employees of the United States Government for purposes 

of any law administered by the Office of Personnel Management. 

The Secretary of State may determine the applicability to such 

individuals of any law administered by the Secretary concerning 

the performance of such services by such individuals. 

(b) CONDITIONS.—The authority under paragraph (1) is subject 

to the following conditions: 

(1) The Inspector General determines that existing personnel resources are insufficient. 

(2) The contract length for a personal services contractor, 

including options, may not exceed 1 year, unless the Inspector 

General makes a finding that exceptional circumstances justify 

an extension of up to 1 additional year. 

(3) Not more than 10 individuals may be employed at 

any time as personal services contractors under the program. 

(c) TERMINATION OF AUTHORITY.—The authority to award personal services contracts under this section shall terminate on 

December 31, 2007. A contract entered into prior to the termination 

date under this paragraph may remain in effect until not later 

than December 31, 2009. 

(d) OTHER AUTHORITIES NOT AFFECTED.—The authority under 

this section is in addition to any other authority of the Inspector 

General to hire personal services contractors. 

FUNDING TABLES

SEC. 1808. (a) Funds provided in this Act for the following 

accounts shall be made available for programs and countries in 

the amounts contained in the respective tables included in the 

report accompanying this Act: 

‘‘Diplomatic and Consular Programs’’. 

‘‘Economic Support Fund’’. 

‘‘Democracy Fund’’. 

‘‘International Narcotics Control and Law Enforcement’’. 

‘‘Migration and Refugee Assistance’’. 

(b) Any proposed increases or decreases to the amounts contained in the tables in the accompanying report shall be subject 

to the regular notification procedures of the Committees on Appropriations and section 634A of the Foreign Assistance Act of 1961. 

SPENDING PLAN AND NOTIFICATION PROCEDURES

SEC. 1809. Not later than 45 days after enactment of this 

Act the Secretary of State shall submit to the Committees on 

Appropriations a report detailing planned expenditures for funds 

appropriated under the headings in this chapter, except for funds 

appropriated under the heading ‘‘International Disaster and Famine 

Assistance’’: Provided, That funds appropriated under the headings 

in this chapter, except for funds appropriated under the heading 

named in this section, shall be subject to the regular notification 

procedures of the Committees on Appropriations. 
H. R. 1591—28

CONDITIONS ON ASSISTANCE FOR PAKISTAN

SEC. 1810. None of the funds made available for assistance 

for the central Government of Pakistan under the heading ‘‘Economic Support Fund’’ in this title may be made available for nonproject assistance until the Secretary of State submits to the 

Committees on Appropriations a report on the oversight mechanisms, performance benchmarks, and implementation processes for 

such funds: Provided, That notwithstanding any other provision 

of law, funds made available for non-project assistance pursuant 

to the previous proviso shall be subject to the regular notification 

procedures of the Committees on Appropriations: Provided further,

That of the funds made available for assistance for Pakistan under 

the heading ‘‘Economic Support Fund’’ in this title, $5,000,000 

shall be made available for the Human Rights and Democracy 

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

Department of State, for political party development and election 

observation programs. 

CIVILIAN RESERVE CORPS

SEC. 1811. Of the funds appropriated by this Act under the 

heading ‘‘Diplomatic and Consular Programs’’, up to $50,000,000 

may be made available to support and maintain a civilian reserve 

corps: Provided, That none of the funds for a civilian reserve corps 

may be obligated without specific authorization in a subsequent 

Act of Congress: Provided further, That funds made available under 

this section shall be subject to the regular notification procedures 

of the Committees on Appropriations. 

COORDINATOR FOR IRAQ ASSISTANCE

SEC. 1812. (a) COORDINATOR FOR IRAQ ASSISTANCE.—Not later 

than 30 days after the date of the enactment of this Act, the 

President shall appoint a Coordinator for Iraq Assistance (hereinafter in this section referred to as the ‘‘Coordinator’’), by and with 

the advice and consent of the Senate, who shall report directly 

to the President. 

(b) DUTIES.—The Coordinator shall be responsible for—

(1) developing and implementing an overall strategy for 

political, economic, and military assistance for Iraq; 

(2) coordinating and ensuring coherence of Iraq assistance 

programs and policy among all departments and agencies of 

the Government of the United States that are implementing 

assistance programs in Iraq, including the Department of State, 

the United States Agency for International Development, the 

Department of Defense, the Department of the Treasury, and 

the Department of Justice; 

(3) working with the Government of Iraq in meeting the 

benchmarks described in section 1904(a) of this Act in order 

to ensure Iraq continues to be eligible to receive United States 

assistance described in such section; 

(4) coordinating with other donors and international 

organizations that are providing assistance for Iraq; 

(5) ensuring adequate management and accountability of 

United States assistance programs for Iraq; 
H. R. 1591—29

(6) resolving policy and program disputes among departments and agencies of the United States Government that 

are implementing assistance programs in Iraq; and 

(7) coordinating United States assistance programs with 

the reconstruction programs funded and implemented by the 

Government of Iraq. 

(c) RANK AND STATUS.—The Coordinator shall have the rank 

and status of ambassador. 

CHAPTER 9

GENERAL PROVISIONS—THIS TITLE 

SEC. 1901. (a) Congress finds that it is Defense Department 

policy that units should not be deployed for combat unless they 

are rated ‘‘fully mission capable’’. 

(b) None of the funds appropriated or otherwise made available 

in this or any other Act may be used to deploy any unit of the 

Armed Forces to Iraq unless the chief of the military department 

concerned has certified in writing to the Committees on Appropriations and the Committees on Armed Services at least 15 days 

in advance of the deployment that the unit is fully mission capable. 

(c) For purposes of subsection (b), the term ‘‘fully mission 

capable’’ means capable of performing assigned mission essential 

tasks to prescribed standards under the conditions expected in 

the theater of operations, consistent with the guidelines set forth 

in the Department of Defense readiness reporting system. 

(d) The President, by certifying in writing to the Committees 

on Appropriations and the Committees on Armed Services that 

the deployment to Iraq of a unit that is not assessed fully mission 

capable is required for reasons of national security and by submitting along with the certification a report in classified and unclassified form detailing the particular reason or reasons why the unit’s 

deployment is necessary despite the chief of the military department’s assessment that the unit is not fully mission capable, may 

waive the limitation prescribed in subsection (b) on a unit-byunit basis. 

SEC. 1902. (a) Congress finds that it is Defense Department 

policy that Army, Army Reserve, and National Guard units should 

not be deployed for combat beyond 365 days or that Marine Corps 

and Marine Corps Reserve units should not be deployed for combat 

beyond 210 days. 

(b) None of the funds appropriated or otherwise made available 

in this or any other Act may be obligated or expended to initiate 

the development of, continue the development of, or execute any 

order that has the effect of extending the deployment for Operation 

Iraqi Freedom of—

(1) any unit of the Army, Army Reserve or Army National 

Guard beyond 365 days; or 

(2) any unit of the Marine Corps or Marine Corps Reserve 

beyond 210 days. 

(c) The limitation prescribed in subsection (b) shall not be 

construed to require force levels in Iraq to be decreased below 

the total United States force levels in Iraq prior to January 10, 

2007. 

(d) The President, by certifying in writing to the Committees 

on Appropriations and the Committees on Armed Services that 
H. R. 1591—30

the extension of a unit’s deployment in Iraq beyond the periods 

specified in subsection (b) is required for reasons of national security 

and by submitting along with the certification a report in classified 

and unclassified form detailing the particular reason or reasons 

why the unit’s extended deployment is necessary, may waive the 

limitations prescribed in subsection (b) on a unit-by-unit basis. 

SEC. 1903. (a) Congress finds that it is Defense Department 

policy that Army, Army Reserve, and National Guard units should 

not be redeployed for combat if the unit has been deployed within 

the previous 365 consecutive days or that Marine Corps and Marine 

Corps Reserve units should not be redeployed for combat if the 

unit has been deployed within the previous 210 days. 

(b) None of the funds appropriated or otherwise made available 

in this or any other Act may be obligated or expended to initiate 

the development of, continue the development of, or execute any 

order that has the effect of deploying for Operation Iraqi Freedom 

of—

(1) any unit of the Army, Army Reserve or Army National 

Guard if such unit has been deployed within the previous 

365 consecutive days; or 

(2) any unit of the Marine Corps or Marine Corps Reserve 

if such unit has been deployed within the previous 210 consecutive days. 

(c) The limitation prescribed in subsection (b) shall not be 

construed to require force levels in Iraq to be decreased below 

the total United States force levels in Iraq prior to January 10, 

2007. 

(d) The President, by certifying in writing to the Committees 

on Appropriations and the Committees on Armed Services that 

the redeployment of a unit to Iraq in advance of the periods specified 

in subsection (b) is required for reasons of national security and 

by submitting along with the certification a report in classified 

and unclassified form detailing the particular reason or reasons 

why the unit’s redeployment is necessary, may waive the limitations 

prescribed in subsection (b) on a unit-by-unit basis. 

SEC. 1904. (a) The President shall make and transmit to Congress the following determinations, along with reports in classified 

and unclassified form detailing the basis for each determination, 

on or before July 1, 2007—

(1) whether the Government of Iraq has given United 

States Armed Forces and Iraqi Security Forces the authority 

to pursue all extremists, including Sunni insurgents and Shiite 

militias, and is making substantial progress in delivering necessary Iraqi Security Forces for Baghdad and protecting such 

Forces from political interference; intensifying efforts to build 

balanced security forces throughout Iraq that provide evenhanded security for all Iraqis; ensuring that Iraq’s political 

authorities are not undermining or making false accusations 

against members of the Iraqi Security Forces; eliminating 

militia control of local security; establishing a strong militia 

disarmament program; ensuring fair and just enforcement of 

laws; establishing political, media, economic, and service 

committees in support of the Baghdad Security Plan; and eradicating safe havens; 

(2) whether the Government of Iraq is making substantial 

progress in meeting its commitment to pursue reconciliation 

initiatives, including enactment of a hydro-carbon law; adoption 
H. R. 1591—31

of legislation necessary for the conduct of provincial and local 

elections; reform of current laws governing the deBaathification process; amendment of the Constitution of Iraq; 

and allocation of Iraqi revenues for reconstruction projects; 

(3) whether the Government of Iraq and United States 

Armed Forces are making substantial progress in reducing 

the level of sectarian violence in Iraq; and 

(4) whether the Government of Iraq is ensuring the rights 

of minority political parties in the Iraqi Parliament are protected. 

(b) If the President fails to make any of the determinations 

specified in subsection (a), the Secretary of Defense shall commence 

the redeployment of the Armed Forces from Iraq no later than 

July 1, 2007, with a goal of completing such redeployment within 

180 days. 

(c) If the President makes the determinations specified in subsection (a), the Secretary of Defense shall commence the redeployment of the Armed Forces from Iraq not later than October 1, 

2007, with a goal of completing such redeployment within 180 

days. 

(d) Notwithstanding any other provision of law, funds appropriated or otherwise made available in this or any other Act are 

immediately available for obligation and expenditure to plan and 

execute a safe and orderly redeployment of the Armed Forces from 

Iraq, as specified in subsections (b) and (c). 

(e) After the conclusion of the redeployment specified in subsections (b) and (c), the Secretary of Defense may not deploy or 

maintain members of the Armed Forces in Iraq for any purpose 

other than the following: 

(1) Protecting American diplomatic facilities and American 

citizens, including members of the United States Armed Forces. 

(2) Serving in roles consistent with customary diplomatic 

positions. 

(3) Engaging in targeted special actions limited in duration 

and scope to killing or capturing members of al-Qaeda and 

other terrorist organizations with global reach. 

(4) Training and equipping members of the Iraqi Security 

Forces. 

(f) Notwithstanding any other provision of law, 50 percent 

of the funds appropriated by title I of this Act for assistance to 

Iraq under each of the headings ‘‘Economic Support Fund’’ and 

‘‘International Narcotics Control and Law Enforcement’’ shall be 

withheld from obligation until the President has made a certification 

to Congress that the Government of Iraq has enacted a broadly 

accepted hydro-carbon law that equitably shares oil revenues among 

all Iraqis; adopted legislation necessary for the conduct of provincial 

and local elections, taken steps to implement such legislation, and 

set a schedule to conduct provincial and local elections; reformed 

current laws governing the de-Baathification process to allow for 

more equitable treatment of individuals affected by such laws; 

amended the Constitution of Iraq consistent with the principles 

contained in Article 137 of such constitution; and allocated and 

begun expenditure of $10,000,000,000 in Iraqi revenues for 

reconstruction projects, including delivery of essential services, on 

an equitable basis. 

(g) The requirement to withhold funds from obligation pursuant 

to subsection (f) shall not apply with respect to funds made available 
H. R. 1591—32

under the heading ‘‘Economic Support Fund’’ for continued support 

for the Community Action Program and Community Stabilization 

Program in Iraq administered by the United States Agency for 

International Development or for programs and activities to promote 

democracy in Iraq. 

(h) Beginning on September 1, 2007, and every 60 days thereafter, the Commander, Multi-National Forces—Iraq and the United 

States Ambassador to Iraq shall jointly submit to Congress a report 

describing and assessing in detail the current progress being made 

by the Government of Iraq regarding the criteria set forth in subsection (a). 

TITLE II 

ADDITIONAL HURRICANE DISASTER RELIEF AND 

RECOVERY 

CHAPTER 1

DEPARTMENT OF AGRICULTURE 

GENERAL PROVISION—THIS CHAPTER 

SEC. 2101. Section 1231(k)(2) of the Food Security Act of 1985 

(16 U.S.C. 3831(k)(2)) is amended by striking ‘‘During calendar 

year 2006, the’’ and inserting ‘‘The’’. 

CHAPTER 2

DEPARTMENT OF JUSTICE 

OFFICE OF JUSTICE PROGRAMS

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, for discretionary grants authorized by subpart 

2 of part E, of title I of the Omnibus Crime Control and Safe 

Streets Act of 1968 as in effect on September 30, 2006, notwithstanding the provisions of section 511 of said Act, $50,000,000, 

to remain available until expended: Provided, That the amount 

made available under this heading shall be for local law enforcement 

initiatives in the Gulf Coast region related to the aftermath of 

Hurricanes Katrina and Rita: Provided further, That these funds 

shall be apportioned among the States in quotient to their level 

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

DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facilities’’, for necessary expenses related to the consequences of Hurricanes Katrina and Rita on the shrimp and fishing industries, 

$110,000,000, to remain available until September 30, 2008. 
H. R. 1591—33

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 

EXPLORATION CAPABILITIES

For an additional amount for ‘‘Exploration Capabilities’’ for 

necessary expenses related to the consequences of Hurricane 

Katrina, $35,000,000, to remain available until September 30, 2009. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 2201. Up to $48,000,000 of amounts made available to 

the National Aeronautics and Space Administration in Public Law 

109–148 and Public Law 109–234 for emergency hurricane and 

other natural disaster-related expenses may be used to reimburse 

hurricane-related costs incurred by NASA in fiscal year 2005. 

CHAPTER 3

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

CONSTRUCTION

For an additional amount for ‘‘Construction’’ for necessary 

expenses related to the consequences of Hurricane Katrina and 

other hurricanes of the 2005 season, $25,300,000, to remain available until expended, which may be used to continue construction 

of projects related to interior drainage for the greater New Orleans 

metropolitan area. 

FLOOD CONTROL AND COASTAL EMERGENCIES

For an additional amount for ‘‘Flood Control and Coastal Emergencies’’, as authorized by section 5 of the Act of August 18, 1941 

(33 U.S.C. 701n), for necessary expenses relating to the consequences of Hurricanes Katrina and Rita and for other purposes, 

$1,407,700,000, to remain available until expended: Provided, That 

$1,300,000,000 of the amount provided may be used by the Secretary of the Army to carry out projects and measures for the 

West Bank and Vicinity and Lake Ponchartrain and Vicinity, Louisiana, projects, as described under the heading ‘‘Flood Control 

and Coastal Emergencies’’, in chapter 3 of Public Law 109–148: 

Provided further, That $107,700,000 of the amount provided may 

be used to implement the projects for hurricane storm damage 

reduction, flood damage reduction, and ecosystem restoration within 

Hancock, Harrison, and Jackson Counties, Mississippi substantially 

in accordance with the Report of the Chief of Engineers dated 

December 31, 2006, and entitled ‘‘Mississippi, Coastal Improvements Program Interim Report, Hancock, Harrison, and Jackson 

Counties, Mississippi’’: Provided further, That projects authorized 

for implementation under this Chief’s report shall be carried out 

at full Federal expense, except that the non-Federal interests shall 

be responsible for providing for all costs associated with operation 

and maintenance of the project: Provided further, That any project 

using funds appropriated under this heading shall be initiated 
H. R. 1591—34

only after non-Federal interests have entered into binding agreements with the Secretary requiring the non-Federal interests to 

pay 100 percent of the operation, maintenance, repair, replacement, 

and rehabilitation costs of the project and to hold and save the 

United States free from damages due to the construction or operation and maintenance of the project, except for damages due to 

the fault or negligence of the United States or its contractors: 

Provided further, That the Chief of Engineers, acting through the 

Assistant Secretary of the Army for Civil Works, shall provide 

a monthly report to the House and Senate Committees on Appropriations detailing the allocation and obligation of these funds, 

beginning not later than 60 days after enactment of this Act. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2301. The Secretary is authorized and directed to determine the value of eligible reimbursable expenses incurred by local 

governments in storm-proofing pumping stations, constructing safe 

houses for operators, and other interim flood control measures 

in and around the New Orleans metropolitan area that the Secretary determines to be integral to the overall plan to ensure 

operability of the stations during hurricanes, storms and high water 

events and the flood control plan for the area. 

SEC. 2302. (a) The Secretary of the Army is authorized and 

directed to utilize funds remaining available for obligation from 

the amounts appropriated in chapter 3 of Public Law 109–234 

under the heading ‘‘Flood Control and Coastal Emergencies’’ for 

projects in the greater New Orleans metropolitan area to prosecute 

these projects in a manner which promotes the goal of continuing 

work at an optimal pace, while maximizing, to the greatest extent 

practicable, levels of protection to reduce the risk of storm damage 

to people and property. 

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

may be made without regard to individual amounts or purposes 

specified in chapter 3 of Public Law 109–234. 

(c) Any reallocation of funds that are necessary to accomplish 

the goal established in subsection (a) are authorized, subject to 

the approval of the House and Senate Committees on Appropriation. 

SEC. 2303. The Chief of Engineers shall investigate the overall 

technical advantages, disadvantages and operational effectiveness 

of operating the new pumping stations at the mouths of the 17th 

Street, Orleans Avenue and London Avenue canals in the New 

Orleans area directed for construction in Public Law 109–234 

concurrently or in series with existing pumping stations serving 

these canals and the advantages, disadvantages and technical operational effectiveness of removing the existing pumping stations 

and configuring the new pumping stations and associated canals 

to handle all needed discharges; and the advantages, disadvantages 

and technical operational effectiveness of replacing or improving 

the floodwalls and levees adjacent to the three outfall canals: Provided, That the analysis should be conducted at Federal expense: 

Provided further, That the analysis shall be completed and furnished to the Congress not later than three months after enactment 

of this Act. 

SEC. 2304. Using funds made available in Chapter 3 under 

title II of Public Law 109–234, under the heading ‘‘Investigations’’, 

the Secretary of the Army, in consultation with other agencies 
H. R. 1591—35

and the State of Louisiana shall accelerate completion as practicable 

the final report of the Chief of Engineers recommending a comprehensive plan to deauthorize deep draft navigation on the Mississippi River Gulf Outlet: Provided, That the plan shall incorporate 

and build upon the Interim Mississippi River Gulf Outlet DeepDraft De-Authorization Report submitted to Congress in December 

2006 pursuant to Public Law 109–234. 

CHAPTER 4

SMALL BUSINESS ADMINISTRATION 

DISASTER LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Of the unobligated balances under the heading ‘‘Small Business 

Administration, Disaster Loans Program Account’’, $25,069,000, to 

remain available until expended, shall be used for administrative 

expenses to carry out the disaster loan program, which may be 

transferred to and merged with ‘‘Small Business Administration, 

Salaries and Expenses’’. 

Of the unobligated balances under the heading ‘‘Small Business 

Administration, Disaster Loans Program Account’’, $25,000,000 

shall be used for loans under section 7(b)(2) of the Small Business 

Act for businesses located in an area for which the President 

declared a major disaster because of the hurricanes in the Gulf 

of Mexico in calendar year 2005, of which not to exceed $8,750,000 

is for direct administrative expenses and may be transferred to 

and merged with ‘‘Small Business Administration, Salaries and 

Expenses’’ to carry out the disaster loan program of the Small 

Business Administration. 

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY 

FEDERAL EMERGENCY MANAGEMENT AGENCY

DISASTER RELIEF

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Disaster Relief’’, $4,610,000,000, 

to remain available until expended: Provided, That $4,000,000 shall 

be transferred to ‘‘Office of Inspector General’’. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2501. (a) IN GENERAL.—Notwithstanding any other provision of law, including any agreement, the Federal share of assistance, including direct Federal assistance, provided for the States 

of Louisiana, Mississippi, Florida, Alabama, and Texas in connection 

with Hurricanes Katrina, Wilma, Dennis, and Rita under sections 

403, 406, 407, and 408 of the Robert T. Stafford Disaster Relief 

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

5174) shall be 100 percent of the eligible costs under such sections. 
H. R. 1591—36

(b) APPLICABILITY.—The Federal share provided by subsection 

(a) shall apply to disaster assistance applied for before the date 

of enactment of this Act. 

SEC. 2502. (a) COMMUNITY DISASTER LOAN ACT.— (1) IN GENERAL.—Section 2(a) of the Community Disaster 

Loan Act of 2005 (Public Law 109–88) is amended by striking 

‘‘Provided further, That notwithstanding section 417(c)(1) of 

the Stafford Act, such loans may not be canceled:’’. 

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

(1) shall be effective on the date of enactment of the Community 

Disaster Loan Act of 2005 (Public Law 109–88). 

(b) EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT.— (1) IN GENERAL.—Chapter 4 of title II of the Emergency 

Supplemental Appropriations Act for Defense, the Global War 

on Terror, and Hurricane Recovery, 2006 (Public Law 109–

234) is amended under Federal Emergency Management 

Agency, ‘‘Disaster Assistance Direct Loan Program Account’’ 

by striking ‘‘Provided further, That notwithstanding section 

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

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

(1) shall be effective on the date of enactment of the Emergency 

Supplemental Appropriations Act for Defense, the Global War 

on Terror, and Hurricane Recovery, 2006 (Public Law 109–

234). 

SEC. 2503. (a) IN GENERAL.—Section 2401 of the Emergency 

Supplemental Appropriations Act for Defense, the Global War on 

Terror, and Hurricane Recovery, 2006 (Public Law 109–234) is 

amended by striking ‘‘12 months’’ and inserting ‘‘24 months’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall be effective on the date of enactment of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, 

and Hurricane Recovery, 2006 (Public Law 109–234). 

CHAPTER 6

DEPARTMENT OF THE INTERIOR 

NATIONAL PARK SERVICE

HISTORIC PRESERVATION FUND

For an additional amount for the ‘‘Historic Preservation Fund’’ 

for necessary expenses related to the consequences of Hurricane 

Katrina and other hurricanes of the 2005 season, $10,000,000, 

to remain available until September 30, 2008: Provided, That the 

funds provided under this heading shall be provided to the State 

Historic Preservation Officer, after consultation with the National 

Park Service, for grants for disaster relief in areas of Louisiana 

impacted by Hurricanes Katrina or Rita: Provided further, That 

grants shall be for the preservation, stabilization, rehabilitation, 

and repair of historic properties listed in or eligible for the National 

Register of Historic Places, for planning and technical assistance: 

Provided further, That grants shall only be available for areas 

that the President determines to be a major disaster under section 

102(2) of the Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122(2)) due to Hurricanes Katrina or 

Rita: Provided further, That individual grants shall not be subject 

to a non-Federal matching requirement: Provided further, That 
H. R. 1591—37

no more than 5 percent of funds provided under this heading 

for disaster relief grants may be used for administrative expenses. 

GENERAL PROVISION—THIS CHAPTER 

(INCLUDING TRANSFER OF FUNDS)

SEC. 2601. Of the disaster relief funds from Public Law 109–

234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, ‘‘National 

Park Service—Historic Preservation Fund’’, for necessary expenses 

related to the consequences of Hurricane Katrina and other hurricanes of the 2005 season that were allocated to the State of Mississippi by the National Park Service, $500,000 is hereby transferred to the ‘‘National Park Service—National Recreation and 

Preservation’’ appropriation: Provided, That these funds may be 

used to reconstruct destroyed properties that at the time of destruction were listed in the National Register of Historic Places and 

are otherwise qualified to receive these funds: Provided further,

That the State Historic Preservation Officer certifies that, for the 

community where that destroyed property was located, the property 

is iconic to or essential to illustrating that community’s historic 

identity, that no other property in that community with the same 

associative historic value has survived, and that sufficient historical 

documentation exists to ensure an accurate reproduction. 

CHAPTER 7

DEPARTMENT OF EDUCATION 

HIGHER EDUCATION

For an additional amount under part B of title VII of the 

Higher Education Act of 1965 (‘‘HEA’’) for institutions of higher 

education (as defined in section 101 or section 102(c) of that Act) 

that are located in an area in which a major disaster was declared 

in accordance with section 401 of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act related to Hurricanes Katrina 

or Rita, $30,000,000: Provided, That such funds shall be available 

to the Secretary of Education only for payments to help defray 

the expenses (which may include lost revenue, reimbursement for 

expenses already incurred, and construction) incurred by such 

institutions of higher education that were forced to close, relocate 

or significantly curtail their activities as a result of damage directly 

caused by such hurricanes and for payments to enable such institutions to provide grants to students who attend such institutions 

for academic years beginning on or after July 1, 2006: Provided 

further, That such payments shall be made in accordance with 

criteria established by the Secretary and made publicly available 

without regard to section 437 of the General Education Provisions 

Act, section 553 of title 5, United States Code, or part B of title 

VII of the HEA. 

HURRICANE EDUCATION RECOVERY

For carrying out activities authorized by subpart 1 of part 

D of title V of the Elementary and Secondary Education Act of 

1965, $30,000,000, to remain available until expended, for use by 

the States of Louisiana, Mississippi, and Alabama primarily for 
H. R. 1591—38

recruiting, retaining, and compensating new and current teachers, 

school principals, assistant principals, principal resident directors, 

assistant directors, and other educators, who commit to work for 

at least three years in school-based positions in public elementary 

and secondary schools located in an area with respect to which 

a major disaster was declared under section 401 of the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5170) by reason of Hurricane Katrina or Hurricane Rita, including 

through such mechanisms as paying salary premiums, performance 

bonuses, housing subsidies, signing bonuses, and relocation costs 

and providing loan forgiveness, with priority given to teachers and 

school-based school principals, assistant principals, principal resident directors, assistant directors, and other educators who previously worked or lived in one of the affected areas, are currently 

employed (or become employed) in such a school in any of the 

affected areas after those disasters, and commit to continue that 

employment for at least 3 years, Provided, That funds available 

under this heading to such States may also be used for 1 or 

more of the following activities: (1) to build the capacity, knowledge, 

and skill of teachers and school-based school principals, assistant 

principals, principal resident directors, assistant directors, and 

other educators in such public elementary and secondary schools 

to provide an effective education, including the design, adaptation, 

and implementation of high-quality formative assessments; (2) the 

establishment of partnerships with nonprofit entities with a demonstrated track record in recruiting and retaining outstanding 

teachers and other school-based school principals, assistant principals, principal resident directors, and assistant directors; and 

(3) paid release time for teachers and principals to identify and 

replicate successful practices from the fastest-improving and 

highest-performing schools: Provided further, That the Secretary 

of Education shall allocate amounts available under this heading 

among such States that submit applications; that such allocation 

shall be based on the number of public elementary and secondary 

schools in each State that were closed for 19 days or more during 

the period beginning on August 29, 2005, and ending on December 

31, 2005, due to Hurricane Katrina or Hurricane Rita; and that 

such States shall in turn allocate funds to local educational agencies, 

with priority given first to such agencies with the highest percentages of public elementary and secondary schools that are closed 

as a result of such hurricanes as of the date of enactment of 

this Act and then to such agencies with the highest percentages 

of public elementary and secondary schools with a student-teacher 

ratio of at least 25 to 1, and with any remaining amounts to 

be distributed to such agencies with demonstrated need, as determined by the State Superintendent of Education: Provided further,

That, in the case of any State that chooses to use amounts available 

under this heading for performance bonuses, not later than 60 

days after the date of enactment of this Act, and in collaboration 

with local educational agencies, teachers’ unions, local principals’ 

organizations, local parents’ organizations, local business organizations, and local charter schools organizations, the State educational 

agency shall develop a plan for a rating system for performance 

bonuses, and if no agreement has been reached that is satisfactory 

to all consulting entities by such deadline, the State educational 

agency shall immediately send a letter notifying Congress and 

shall, not later than 30 days after such notification, establish and 
H. R. 1591—39

implement a rating system that shall be based on classroom 

observation and feedback more than once annually, conducted by 

multiple sources (including, but not limited to, principals and 

master teachers), and evaluated against research-based rubrics that 

use planning, instructional, and learning environment standards 

to measure teacher performance, except that the requirements of 

this proviso shall not apply to a State that has enacted a State 

law in 2006 authorizing performance pay for teachers. 

PROGRAMS TO RESTART SCHOOL OPERATIONS

Funds made available under section 102 of the Hurricane Education Recovery Act (title IV of division B of Public Law 109–

148) may be used by the States of Louisiana, Mississippi, Alabama, 

and Texas, in addition to the uses of funds described in section 

102(e), for the following costs: (1) recruiting, retaining, and compensating new and current teachers, school principals, assistant principals, principal resident directors, assistant directors, and other 

educators for school-based positions in public elementary and secondary schools impacted by Hurricane Katrina or Hurricane Rita, 

including through such mechanisms as paying salary premiums, 

performance bonuses, housing subsidies, signing bonuses, and 

relocation costs and providing loan forgiveness; (2) activities to 

build the capacity, knowledge, and skills of teachers and schoolbased school principals, assistant principals, principal resident 

directors, assistant directors, and other educators in such public 

elementary and secondary schools to provide an effective education, 

including the design, adaptation, and implementation of highquality formative assessments; (3) the establishment of partnerships 

with nonprofit entities with a demonstrated track record in 

recruiting and retaining outstanding teachers and school-based 

school principals, assistant principals, principal resident directors, 

and assistant directors; and (4) paid release time for teachers and 

principals to identify and replicate successful practices from the 

fastest-improving and highest-performing schools. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2701. Section 105(b) of title IV of division B of Public 

Law 109–148 is amended by adding at the end the following new 

sentence: ‘‘With respect to the program authorized by section 102 

of this Act, the waiver authority in subsection (a) of this section 

shall be available until the end of fiscal year 2008.’’. 

SEC. 2702. Notwithstanding section 2002(c) of the Social Security Act (42 U.S.C. 1397a(c)), funds made available under the 

heading ‘‘Social Services Block Grant’’ in division B of Public Law 

109–148 shall be available for expenditure by the States through 

the end of fiscal year 2009. 

SEC. 2703. (a) In the event that Louisiana, Mississippi, Alabama, or Texas fails to meet its match requirement with funds 

appropriated in fiscal years 2006 or 2007, for fiscal years 2008 

and 2009, the Secretary of Health and Human Services may waive 

the application of section 2617(d)(4) of the Public Health Service 

Act for Louisiana, Mississippi, Alabama, and Texas. 

(b) The Secretary may not exercise the waiver authority available under subsection (a) to allow a grantee to provide less than 

a 25 percent matching grant. 
H. R. 1591—40

(c) For grant years beginning in 2008, Louisiana, Mississippi, 

Alabama, and Texas and any eligible metropolitan area in Louisiana, Mississippi, Alabama, and Texas shall comply with each 

of the applicable requirements under title XXVI of the Public Health 

Service Act (42 U.S.C. 300ff–11 et seq.). 

CHAPTER 8

DEPARTMENT OF TRANSPORTATION 

FEDERAL HIGHWAY ADMINISTRATION

FEDERAL-AID HIGHWAYS

EMERGENCY RELIEF PROGRAM

(INCLUDING RESCISSION OF FUNDS)

For an additional amount for the Emergency Relief Program 

as authorized under section 125 of title 23, United States Code, 

$682,942,000, to remain available until expended: Provided, That 

section 125(d)(1) of title 23, United States Code, shall not apply 

to emergency relief projects that respond to damage caused by 

the 2005–2006 winter storms in the State of California: Provided 

further, That of the unobligated balances of funds apportioned to 

each State under chapter 1 of title 23, United States Code, 

$682,942,000 are rescinded: Provided further, That such rescission 

shall not apply to the funds distributed in accordance with sections 

130(f) and 104(b)(5) of title 23, United States Code; sections 

133(d)(1) and 163 of such title, as in effect on the day before 

the date of enactment of Public Law 109–59; and the first sentence 

of section 133(d)(3)(A) of such title. 

FEDERAL TRANSIT ADMINISTRATION

FORMULA GRANTS

For an additional amount to be allocated by the Secretary 

to recipients of assistance under chapter 53 of title 49, United 

States Code, directly affected by Hurricanes Katrina and Rita, 

$35,000,000, for the operating and capital costs of transit services, 

to remain available until expended: Provided, That the Federal 

share for any project funded from this amount shall be 100 percent. 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF INSPECTOR GENERAL

For an additional amount for the Office of Inspector General, 

for the necessary costs related to the consequences of Hurricanes 

Katrina and Rita, $7,000,000, to remain available until expended. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2801. The third proviso under the heading ‘‘Department 

of Housing and Urban Development—Public and Indian Housing—

Tenant-Based Rental Assistance’’ in chapter 9 of title I of division 

B of Public Law 109–148 (119 Stat. 2779) is amended by striking 

‘‘for up to 18 months’’ and inserting ‘‘until December 31, 2007’’. 
H. R. 1591—41

SEC. 2802. Section 21033 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by adding after the third proviso: 

‘‘: Provided further, That notwithstanding the previous proviso, 

except for applying the 2007 Annual Adjustment Factor and making 

any other specified adjustments, public housing agencies specified 

in category 1 below shall receive funding for calendar year 2007 

based on the higher of the amounts the agencies would receive 

under the previous proviso or the amounts the agencies received 

in calendar year 2006, and public housing agencies specified in 

categories 2 and 3 below shall receive funding for calendar year 

2007 equal to the amounts the agencies received in calendar year 

2006, except that public housing agencies specified in categories 

1 and 2 below shall receive funding under this proviso only if, 

and to the extent that, any such public housing agency submits 

a plan, approved by the Secretary, that demonstrates that the 

agency can effectively use within 12 months the funding that the 

agency would receive under this proviso that is in addition to 

the funding that the agency would receive under the previous 

proviso: (1) public housing agencies that are eligible for assistance 

under section 901 in Public Law 109–148 (119 Stat. 2781) or are 

located in the same counties as those eligible under section 901 

and operate voucher programs under section 8(o) of the U.S. 

Housing Act of 1937 but do not operate public housing under 

section 9 of such Act, and any public housing agency that otherwise 

qualifies under this category must demonstrate that they have 

experienced a loss of rental housing stock as a result of the 2005 

hurricanes; (2) public housing agencies that would receive less 

funding under the previous proviso than they would receive under 

this proviso and that have been placed in receivership or the Secretary has declared to be in breach of an Annual Contributions 

Contract by June 1, 2007; and (3) public housing agencies that 

spent more in calendar year 2006 than the total of the amounts 

of any such public housing agency’s allocation amount for calendar 

year 2006 and the amount of any such public housing agency’s 

available housing assistance payments undesignated funds balance 

from calendar year 2005 and the amount of any such public housing 

agency’s available administrative fees undesignated funds balance 

through calendar year 2006’’. 

SEC. 2803. Section 901 of Public Law 109–148 is amended 

by deleting ‘‘calendar year 2006’’ and inserting ‘‘calendar years 

2006 and 2007’’. 

TITLE III 

OTHER EMERGENCY APPROPRIATIONS 

CHAPTER 1

DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facili- ties’’, $60,400,000, to remain available until September 30, 2008: 

Provided, That the National Marine Fisheries Service shall cause 
H. R. 1591—42

such amounts to be distributed among eligible recipients of assistance for the commercial fishery failure designated under section 

312(a) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(a)) and declared by the Secretary of 

Commerce on August 10, 2006. 

CHAPTER 2

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

OPERATION AND MAINTENANCE

For an additional amount for ‘‘Operation and Maintenance’’ 

to dredge navigation channels related to the consequences of hurricanes of the 2005 season, $3,000,000, to remain available until 

expended. 

FLOOD CONTROL AND COASTAL EMERGENCIES

For an additional amount for ‘‘Flood Control and Coastal Emergencies’’, as authorized by section 5 of the Act of August 18, 1941 

(33 U.S.C. 701n), to support emergency operations, repairs and 

other activities in response to flood, drought and earthquake emergencies as authorized by law, $150,000,000, to remain available 

until expended: Provided, That the Chief of Engineers, acting 

through the Assistant Secretary of the Army for Civil Works, shall 

provide a monthly report to the House and Senate Committees 

on Appropriations detailing the allocation and obligation of these 

funds, beginning not later than 60 days after enactment of this 

Act. 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

For an additional amount for ‘‘Water and Related Resources’’, 

$18,000,000, to remain available until expended for drought assistance: Provided, That drought assistance may be provided under 

the Reclamation States Drought Emergency Act or other applicable 

Reclamation authorities to assist drought plagued areas of the 

West. 

CHAPTER 3

DEPARTMENT OF THE INTERIOR 

BUREAU OF LAND MANAGEMENT

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Wildland Fire Management’’, 

$100,000,000, to remain available until expended, for urgent 
H. R. 1591—43

wildland fire suppression activities: Provided, That such funds shall 

only become available if funds previously provided for wildland 

fire suppression will be exhausted imminently and the Secretary 

of the Interior notifies the House and Senate Committees on Appropriations in writing of the need for these additional funds: Provided 

further, That such funds are also available for repayment to other 

appropriations accounts from which funds were transferred for wildfire suppression. 

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

For an additional amount for ‘‘Resource Management’’ for the 

detection of highly pathogenic avian influenza in wild birds, 

including the investigation of morbidity and mortality events, targeted surveillance in live wild birds, and targeted surveillance 

in hunter-taken birds, $7,398,000, to remain available until September 30, 2008. 

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for ‘‘Operation of the National Park 

System’’ for the detection of highly pathogenic avian influenza in 

wild birds, including the investigation of morbidity and mortality 

events, $525,000, to remain available until September 30, 2008. 

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

For an additional amount for ‘‘Surveys, Investigations, and 

Research’’ for the detection of highly pathogenic avian influenza 

in wild birds, including the investigation of morbidity and mortality 

events, targeted surveillance in live wild birds, and targeted surveillance in hunter-taken birds, $5,270,000, to remain available until 

September 30, 2008. 

DEPARTMENT OF AGRICULTURE 

FOREST SERVICE

NATIONAL FOREST SYSTEM

For an additional amount for ‘‘National Forest System’’ for 

the implementation of a nationwide initiative to increase protection 

of national forest lands from drug-trafficking organizations, 

including funding for additional law enforcement personnel, 

training, equipment and cooperative agreements, $12,000,000, to 

remain available until expended. 

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Wildland Fire Management’’, $400,000,000, to remain available until expended, for urgent 

wildland fire suppression activities: Provided, That such funds shall 
H. R. 1591—44

only become available if funds provided previously for wildland 

fire suppression will be exhausted imminently and the Secretary 

of Agriculture notifies the House and Senate Committees on Appropriations in writing of the need for these additional funds: Provided 

further, That such funds are also available for repayment to other 

appropriation accounts from which funds were transferred for wildfire suppression. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 3301. (a) For fiscal year 2007, payments shall be made 

from any revenues, fees, penalties, or miscellaneous receipts 

described in sections 102(b)(3) and 103(b)(2) of the Secure Rural 

Schools and Community Self-Determination Act of 2000 (Public 

Law 106–393; 16 U.S.C. 500 note), not to exceed $100,000,000, 

and the payments shall be made, to the maximum extent practicable, in the same amounts, for the same purposes, and in the 

same manner as were made to States and counties in 2006 under 

that Act. 

(b) There is appropriated $425,000,000, to remain available 

until December 31, 2007, to be used to cover any shortfall for 

payments made under this section from funds not otherwise appropriated. 

(c) Titles II and III of Public Law 106–393 are amended, effective September 30, 2006, by striking ‘‘2006’’ and ‘‘2007’’ each place 

they appear and inserting ‘‘2007’’ and ‘‘2008’’, respectively. 

CHAPTER 4

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH AND TRAINING

For an additional amount for ‘‘Department of Health and 

Human Services, Centers for Disease Control and Prevention, Disease Control, Research and Training’’, to carry out section 501 

of the Federal Mine Safety and Health Act of 1977 and section 

6 of the Mine Improvement and New Emergency Response Act 

of 2006, $13,000,000 for research to develop mine safety technology, 

including necessary repairs and improvements to leased laboratories: Provided, That progress reports on technology development 

shall be submitted to the House and Senate Committees on Appropriations and the Committee on Health, Education, Labor and 

Pensions of the Senate and the Committee on Education and Labor 

of the House of Representatives on a quarterly basis: Provided 

further, That the amount provided under this heading shall remain 

available until September 30, 2008. 

For an additional amount for ‘‘Department of Health and 

Human Services, Centers for Disease Control and Prevention, Disease Control, Research and Training’’, to carry out activities under 

section 5011(b) of the Emergency Supplemental Appropriations Act 

to Address Hurricanes in the Gulf of Mexico and Pandemic 

Influenza, 2006 (Public Law 109–148), $50,000,000, to remain available until expended. 
H. R. 1591—45

ADMINISTRATION FOR CHILDREN AND FAMILIES

LOW-INCOME HOME ENERGY ASSISTANCE

For an additional amount for ‘‘Low-Income Home Energy Assistance’’ under section 2604(a) through (d) of the Low-Income Home 

Energy Assistance Act of 1981 (42 U.S.C. 8623(a) through (d)), 

$200,000,000. 

For an additional amount for ‘‘Low-Income Home Energy Assistance’’ under section 2604(e) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), $200,000,000. 

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Public Health and Social Services 

Emergency Fund’’ to prepare for and respond to an influenza pandemic, $625,000,000, to remain available until expended: Provided, 

That this amount shall be for activities including the development 

and purchase of vaccine, antivirals, necessary medical supplies, 

diagnostics, and other surveillance tools: Provided further, That 

products purchased with these funds may, at the discretion of 

the Secretary of Health and Human Services, be deposited in the 

Strategic National Stockpile: Provided further, That notwithstanding section 496(b) of the Public Health Service Act, funds 

may be used for the construction or renovation of privately owned 

facilities for the production of pandemic vaccine and other 

biologicals, where the Secretary finds such a contract necessary 

to secure sufficient supplies of such vaccines or biologicals: Provided 

further, That funds appropriated herein may be transferred to other 

appropriation accounts of the Department of Health and Human 

Services, as determined by the Secretary to be appropriate, to 

be used for the purposes specified in this sentence. 

COVERED COUNTERMEASURE PROCESS FUND

For carrying out section 319F–4 of the Public Health Service 

Act (42 U.S.C. 247d–6e) to compensate individuals for injuries 

caused by H5N1 vaccine, in accordance with the declaration 

regarding avian influenza viruses issued by the Secretary of Health 

and Human Services on January 26, 2007, pursuant to section 

319F–3(b) of such Act (42 U.S.C. 247d–6d(b)), $25,000,000, to 

remain available until expended. 

GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING RESCISSIONS)

SEC. 3401. (a). From unexpended balances available for the 

Training and Employment Services account under the Department 

of Labor, the following amounts are hereby rescinded—

(1) $3,589,000 transferred pursuant to the 2001 Emergency 

Supplemental Appropriations Act for Recovery from and 

Response to Terrorist Attacks on the United States (Public 

Law 107–38); 
H. R. 1591—46

(2) $834,000 transferred pursuant to the Emergency 

Supplemental Appropriations Act of 1994 (Public Law 103–

211); and 

(3) $71,000 for the Consortium for Worker Education pursuant to the Emergency Supplemental Act, 2002 (Public Law 

107–117). 

(b) From unexpended balances available for the State 

Unemployment Insurance and Employment Service Operations 

account under the Department of Labor pursuant to the Emergency 

Supplemental Act, 2002 (Public Law 107–117), $4,100,000 are 

hereby rescinded. 

SEC. 3402. (a) For an additional amount under ‘‘Department 

of Education, Safe Schools and Citizenship Education’’, $8,594,000 

shall be available for Safe and Drug-Free Schools National Programs for competitive grants to local educational agencies to address 

youth violence and related issues. 

(b) The competition under subsection (a) shall be limited to 

local educational agencies that operate schools currently identified 

as persistently dangerous under section 9532 of the Elementary 

and Secondary Education Act of 1965. 

CHAPTER 5

LEGISLATIVE BRANCH 

ARCHITECT OF THE CAPITOL 

CAPITOL POWER PLANT

For an additional amount for ‘‘Capitol Power Plant’’, $50,000,000, for utility tunnel repairs and asbestos abatement, to 

remain available until September 30, 2011: Provided, That the 

Architect of the Capitol may not obligate any of the funds appropriated under this heading without approval of an obligation plan 

by the Committees on Appropriations of the Senate and House 

of Representatives. 

CHAPTER 6

DEPARTMENT OF VETERANS AFFAIRS 

VETERANS HEALTH ADMINISTRATION

MEDICAL SERVICES

For an additional amount for ‘‘Medical Services’’, $466,778,000, 

to remain available until expended, of which $30,000,000 shall 

be for the establishment of at least one new Level I comprehensive 

polytrauma center; $9,440,000 shall be for the establishment of 

polytrauma residential transitional rehabilitation programs; 

$10,000,000 shall be for additional transition caseworkers; 

$20,000,000 shall be for substance abuse treatment programs; 

$20,000,000 shall be for readjustment counseling; $10,000,000 shall 

be for blind rehabilitation services; $100,000,000 shall be for 

enhancements to mental health services; $8,000,000 shall be for 

polytrauma support clinic teams; $5,356,000 shall be for additional 

polytrauma points of contact; $228,982,000 shall be for treatment 
H. R. 1591—47

of Operation Enduring Freedom and Operation Iraqi Freedom veterans; and $25,000,000 shall be for prosthetics. 

MEDICAL ADMINISTRATION

For an additional amount for ‘‘Medical Administration’’, 

$250,000,000, to remain available until expended. 

MEDICAL FACILITIES

For an additional amount for ‘‘Medical Facilities’’, $595,000,000, 

to remain available until expended, of which $45,000,000 shall 

be used for facility and equipment upgrades at the Department 

of Veterans Affairs polytrauma network sites; and $550,000,000 

shall be for non-recurring maintenance as identified in the Department of Veterans Affairs Facility Condition Assessment report: 

Provided, That the amount provided under this heading for nonrecurring maintenance shall be allocated in a manner not subject 

to the Veterans Equitable Resource Allocation: Provided further,

That within 30 days of enactment of this Act the Secretary shall 

submit to the Committees on Appropriations of both Houses of 

Congress an expenditure plan, by project, for non-recurring maintenance prior to obligation: Provided further, That semi-annually, 

on October 1 and April 1, the Secretary shall submit to the Committees on Appropriations of both Houses of Congress a report on 

the status of funding for non-recurring maintenance, including 

obligations and unobligated balances for each project identified 

in the expenditure plan. 

MEDICAL AND PROSTHETIC RESEARCH

For an additional amount for ‘‘Medical and Prosthetic 

Research’’, $32,500,000, to remain available until expended, which 

shall be used for research related to the unique medical needs 

of returning Operation Enduring Freedom and Operation Iraqi 

Freedom veterans. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘General Operating Expenses’’, 

$83,200,000, to remain available until expended, of which 

$1,250,000 shall be for digitization of military records; $60,750,000 

shall be for expenses related to hiring and training new claims 

processing personnel; up to $1,200,000 for an independent study 

of the organizational structure, management and coordination processes, including seamless transition, utilized by the Department 

of Veterans Affairs to provide health care and benefits to active 

duty personnel and veterans, including those returning Operation 

Enduring Freedom and Operation Iraqi Freedom veterans; and 

$20,000,000 shall be for disability examinations: Provided, That 

not to exceed $1,250,000 of the amount appropriated under this 

heading may be transferred to the Department of Defense for the 

digitization of military records used to verify stressors for benefits 

claims. 
H. R. 1591—48

INFORMATION TECHNOLOGY SYSTEMS

For an additional amount for ‘‘Information Technology Systems’’, $35,100,000, to remain available until expended, of which 

$20,000,000 shall be for information technology support and 

improvements for processing of Operation Enduring Freedom and 

Operation Iraqi Freedom veterans benefits claims, including making 

electronic Department of Defense medical records available for 

claims processing and enabling electronic benefits applications by 

veterans; and $15,100,000 shall be for electronic data breach 

remediation and prevention. 

CONSTRUCTION, MINOR PROJECTS

For an additional amount for ‘‘Construction, Minor Projects’’, 

$326,000,000, to remain available until expended, of which up to 

$36,000,000 shall be for construction costs associated with the 

establishment of polytrauma residential transitional rehabilitation 

programs. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 3601. The Director of the Congressional Budget Office 

shall, not later than November 15, 2007, submit to the Committees 

on Appropriations of the House of Representatives and the Senate 

a report projecting appropriations necessary for the Departments 

of Defense and Veterans Affairs to continue providing necessary 

health care to veterans of the conflicts in Iraq and Afghanistan. 

The projections should span several scenarios for the duration and 

number of forces deployed in Iraq and Afghanistan, and more 

generally, for the long-term health care needs of deployed troops 

engaged in the global war on terrorism over the next ten years. 

SEC. 3602. Notwithstanding any other provision of law, appropriations made by Public Law 110–5, which the Secretary of Veterans Affairs contributes to the Department of Defense/Department 

of Veterans Affairs Health Care Sharing Incentive Fund under 

the authority of section 8111(d) of title 38, United States Code, 

shall remain available until expended for any purpose authorized 

by section 8111 of title 38, United States Code. 

SEC. 3603. (a)(1) Notwithstanding any other provision of law, 

the Secretary of Veterans Affairs (referred to in this section as 

the ‘‘Secretary’’) may convey to the State of Texas, without consideration, all right, title, and interest of the United States in and 

to the parcel of real property comprising the location of the Marlin, 

Texas, Department of Veterans Affairs Medical Center. 

(2) The property conveyed under paragraph (1) shall be used 

by the State of Texas for the purposes of a prison. 

(b) In carrying out the conveyance under subsection (a), the 

Secretary—

(1) shall not be required to comply with, and shall not 

be held liable under, any Federal law (including a regulation) 

relating to the environment or historic preservation; but 

(2) may, at the discretion of the Secretary, conduct environmental cleanup on the parcel to be conveyed, at a cost not 

to exceed $500,000, using amounts made available for environmental cleanup of sites under the jurisdiction of the Secretary. 
H. R. 1591—49

TITLE IV 

OTHER MATTERS 

CHAPTER 1

DEPARTMENT OF AGRICULTURE 

FARM SERVICE AGENCY

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ of the 

Farm Service Agency, $37,500,000, to remain available until September 30, 2008: Provided, That this amount shall only be available 

for network and database/application stabilization. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4101. Of the funds made available through appropriations 

to the Food and Drug Administration for fiscal year 2007, not 

less than $4,000,000 shall be for the Office of Women’s Health 

of such Administration. 

SEC. 4102. None of the funds made available to the Department 

of Agriculture for fiscal year 2007 may be used to implement the 

risk-based inspection program in the 30 prototype locations 

announced on February 22, 2007, by the Under Secretary for Food 

Safety, or at any other locations, until the USDA Office of Inspector 

General has provided its findings to the Food Safety and Inspection 

Service and the Committees on Appropriations of the House of 

Representatives and the Senate on the data used in support of 

the development and design of the risk-based inspection program 

and FSIS has addressed and resolved issues identified by OIG. 

CHAPTER 2

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4201. Hereafter, federal employees at the National Energy 

Technology Laboratory shall be classified as inherently governmental for the purpose of the Federal Activities Inventory Reform 

Act of 1998 (31 U.S.C. 501 note). 

SEC. 4202. PROHIBITION ON CERTAIN USES OF FUNDS BY BPA. 

None of the funds made available under this or any other Act 

shall be used during fiscal year 2007 to make, or plan or prepare 

to make, any payment on bonds issued by the Administrator of 

the Bonneville Power Administration (referred in this section as 

the ‘‘Administrator’’) or for an appropriated Federal Columbia River 

Power System investment, if the payment is both—

(1) greater, during any fiscal year, than the payments 

calculated in the rate hearing of the Administrator to be made 

during that fiscal year using the repayment method used to 

establish the rates of the Administrator as in effect on October 

1, 2006; and 

(2) based or conditioned on the actual or expected net 

secondary power sales receipts of the Administrator. 
H. R. 1591—50

CHAPTER 3

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4301. (a) Section 102(a)(3)(B) of the Help America Vote 

Act of 2002 (42 U.S.C. 15302(a)(3)(B)) is amended by striking 

‘‘January 1, 2006’’ and inserting ‘‘March 1, 2008’’. 

(b) The amendment made by subsection (a) shall take effect 

as if included in the enactment of the Help America Vote Act 

of 2002. 

SEC. 4302. The structure of any of the offices or components 

within the Office of National Drug Control Policy shall remain 

as they were on October 1, 2006. None of the funds appropriated 

or otherwise made available in the Continuing Appropriations Resolution, 2007 (Public Law 110–5) may be used to implement a 

reorganization of offices within the Office of National Drug Control 

Policy without the explicit approval of the Committees on Appropriations of the House of Representatives and the Senate. 

SEC. 4303. From the amount provided by section 21067 of 

the Continuing Appropriations Resolution, 2007 (Public Law 110–

5), the National Archives and Records Administration may obligate 

monies necessary to carry out the activities of the Public Interest 

Declassification Board. 

SEC. 4304. Notwithstanding the notice requirement of the 

Transportation, Treasury, Housing and Urban Development, the 

Judiciary, the District of Columbia, and Independent Agencies 

Appropriations Act, 2006, 119 Stat. 2509 (Public Law 109–115), 

as continued in section 104 of the Continuing Appropriations Resolution, 2007 (Public Law 110–5), the District of Columbia Courts 

may reallocate not more than $1,000,000 of the funds provided 

for fiscal year 2007 under the Federal Payment to the District 

of Columbia Courts for facilities among the items and entities 

funded under that heading for operations. 

SEC. 4305. (a) Not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury, in coordination 

with the Securities and Exchange Commission and in consultation 

with the Departments of State and Energy, shall prepare and 

submit to the Senate Committee on Appropriations, the House 

Committee on Appropriations, the Senate Committee on Banking, 

Housing, and Urban Affairs, the House Committee on Financial 

Services, the Senate Foreign Relations Committee, and the House 

Foreign Affairs Committee a written report, which may include 

a classified annex, containing the names of companies which either 

directly or through a parent or subsidiary company, including 

partly-owned subsidiaries, are known to conduct significant business operations in Sudan relating to natural resource extraction, 

including oil-related activities and mining of minerals. The reporting 

provision shall not apply to companies operating under licenses 

from the Office of Foreign Assets Control or otherwise expressly 

exempted under United States law from having to obtain such 

licenses in order to operate in Sudan. 

(b) Not later than 45 days following the submission to Congress 

of the list of companies conducting business operations in Sudan 

relating to natural resource extraction as required above, the General Services Administration shall determine whether the United 

States Government has an active contract for the procurement 

of goods or services with any of the identified companies, and 
H. R. 1591—51

provide notification to the appropriate committees of Congress, 

which may include a classified annex, regarding the companies, 

nature of the contract, and dollar amounts involved. 

(INCLUDING RESCISSION)

SEC. 4306. (a) Of the funds provided for the General Services 

Administration, ‘‘Office of Inspector General’’ in section 21061 of 

the Continuing Appropriations Resolution, 2007 (division B of Public 

Law 109–289, as amended by Public Law 110–5), $4,500,000 are 

rescinded. 

(b) For an additional amount for the General Services Administration, ‘‘Office of Inspector General’’, $4,500,000, to remain available until September 30, 2008. 

SEC. 4307. Section 21073 of the Continuing Appropriations 

Resolution, 2007 (Public Law 110–5) is amended by adding a new 

subsection (j) as follows: 

‘‘(j) Notwithstanding section 101, any appropriation or funds 

made available to the District of Columbia pursuant to this division 

for ‘Federal Payment for Foster Care Improvement in the District 

of Columbia’ shall be available in accordance with an expenditure 

plan submitted by the Mayor of the District of Columbia not later 

than 60 days after the enactment of this section which details 

the activities to be carried out with such Federal Payment.’’. 

CHAPTER 4

DEPARTMENT OF HOMELAND SECURITY 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4401. Not to exceed $30,000,000 from unobligated balances 

remaining from prior appropriations for United States Coast Guard, 

‘‘Retired Pay’’, shall remain available until expended in the account 

and for the purposes for which the appropriations were provided, 

including the payment of obligations otherwise chargeable to lapsed 

or current appropriations for this purpose. 

SEC. 4402. (a) IN GENERAL.—Any contract, subcontract, task 

or delivery order described in subsection (b) shall contain the following: 

(1) A requirement for a technical review of all designs, 

design changes, and engineering change proposals, and a 

requirement to specifically address all engineering concerns 

identified in the review before the obligation of further funds 

may occur. 

(2) A requirement that the Coast Guard maintain technical 

warrant holder authority, or the equivalent, for major assets. 

(3) A requirement that no procurement subject to subsection (b) for lead asset production or the implementation 

of a major design change shall be entered into unless an independent third party with no financial interest in the development, construction, or modification of any component of the 

asset, selected by the Commandant, determines that such action 

is advisable. 

(4) A requirement for independent life-cycle cost estimates 

of lead assets and major design and engineering changes. 

(5) A requirement for the measurement of contractor and 

subcontractor performance based on the status of all work 
H. R. 1591—52

performed. For contracts under the Integrated Deepwater Systems program, such requirement shall include a provision that 

links award fees to successful acquisition outcomes (which shall 

be defined in terms of cost, schedule, and performance). 

(6) A requirement that the Commandant of the Coast 

Guard assign an appropriate officer or employee of the Coast 

Guard to act as chair of each integrated product team and 

higher-level team assigned to the oversight of each integrated 

product team. 

(7) A requirement that the Commandant of the Coast 

Guard may not award or issue any contract, task or delivery 

order, letter contract modification thereof, or other similar contract, for the acquisition or modification of an asset under 

a procurement subject to subsection (b) unless the Coast Guard 

and the contractor concerned have formally agreed to all terms 

and conditions or the head of contracting activity for the Coast 

Guard determines that a compelling need exists for the award 

or issue of such instrument. 

(b) CONTRACTS, SUBCONTRACTS, TASK AND DELIVERY ORDERS

COVERED.—Subsection (a) applies to—

(1) any major procurement contract, first-tier subcontract, 

delivery or task order entered into by the Coast Guard; 

(2) any first-tier subcontract entered into under such a 

contract; and 

(3) any task or delivery order issued pursuant to such 

a contract or subcontract. 

(c) EXPENDITURE OF DEEPWATER FUNDS.—Of the funds available for the Integrated Deepwater Systems program, $650,000,000 

may not be obligated until the Committees on Appropriations of 

the Senate and the House of Representatives receive an expenditure 

plan directly from the Coast Guard that—

(1) defines activities, milestones, yearly costs, and lifecycle costs for each procurement of a major asset, including 

an independent cost estimate for each; 

(2) identifies life-cycle staffing and training needs of Coast 

Guard project managers and of procurement and contract staff; 

(3) identifies competition to be conducted in each procurement; 

(4) describes procurement plans that do not rely on a 

single industry entity or contract; 

(5) contains very limited indefinite delivery/indefinite 

quantity contracts and explains the need for any indefinite 

delivery/indefinite quantity contracts; 

(6) complies with all applicable acquisition rules, requirements, and guidelines, and incorporates the best systems 

acquisition management practices of the Federal Government; 

(7) complies with the capital planning and investment control requirements established by the Office of Management 

and Budget, including circular A–11, part 7; 

(8) includes a certification by the head of contracting 

activity for the Coast Guard and the Chief Procurement Officer 

of the Department of Homeland Security that the Coast Guard 

has established sufficient controls and procedures and has sufficient staffing to comply with all contracting requirements, and 

that any conflicts of interest have been sufficiently addressed; 
H. R. 1591—53

(9) includes a description of the process used to act upon 

deviations from the contractually specified performance requirements and clearly explains the actions taken on such deviations; 

(10) includes a certification that the Assistant Commandant 

of the Coast Guard for Engineering and Logistics is designated 

as the technical authority for all engineering, design, and logistics decisions pertaining to the Integrated Deepwater Systems 

program; and 

(11) identifies progress in complying with the requirements 

of subsection (a). 

(d) REPORTS.—(1) Not later than 30 days after the date of 

enactment of this Act, the Commandant of the Coast Guard shall 

submit to the Committees on Appropriations of the Senate and 

the House of Representatives; the Committee on Commerce, Science 

and Transportation of the Senate; and the Committee on Transportation and Infrastructure of the House of Representatives: (i) a 

report on the resources (including training, staff, and expertise) 

required by the Coast Guard to provide appropriate management 

and oversight of the Integrated Deepwater Systems program; and 

(ii) a report on how the Coast Guard will utilize full and open 

competition for any contract that provides for the acquisition or 

modification of assets under, or in support of, the Integrated Deepwater Systems program, entered into after the date of enactment 

of this Act. 

(2) Within 30 days following the submission of the expenditure 

plan required under subsection (c), the Government Accountability 

Office shall review the plan and brief the Committees on Appropriations of the Senate and the House of Representatives on its findings. 

SEC. 4403. None of the funds provided in this Act or any 

other Act may be used to alter or reduce operations within the 

Civil Engineering Program of the Coast Guard nationwide, 

including the civil engineering units, facilities, design and construction centers, maintenance and logistics command centers, the Coast 

Guard Academy and the Coast Guard Research and Development 

Center, except as specifically authorized by a statute enacted after 

the date of enactment of this Act. 

(INCLUDING RESCISSIONS OF FUNDS)

SEC. 4404. (a) RESCISSIONS.—The following unobligated balances made available pursuant to section 505 of Public Law 109–

90 are rescinded: $1,200,962 from the ‘‘Office of the Secretary 

and Executive Management’’; $512,855 from the ‘‘Office of the Under 

Secretary for Management’’; $461,874 from the ‘‘Office of the Chief 

Information Officer’’; $45,080 from the ‘‘Office of the Chief Financial 

Officer’’; $968,211 from Preparedness ‘‘Management and Administration’’; $1,215,486 from Science and Technology ‘‘Management 

and Administration’’; $450,000 from United States Secret Service 

‘‘Salaries and Expenses’’; $450,000 from Federal Emergency 

Management Agency ‘‘Administrative and Regional Operations’’; 

and $25,595,532 from United States Coast Guard ‘‘Operating 

Expenses’’. 

(b) ADDITIONAL APPROPRIATIONS.—

(1) For an additional amount for United States Coast Guard 

‘‘Acquisition, Construction, and Improvements’’, $30,000,000, 

to remain available until September 30, 2009, to mitigate the 

Service’s patrol boat operational gap; and 
H. R. 1591—54

(2) For an additional amount for the ‘‘Office of the Under 

Secretary for Management’’, $900,000, for an independent study 

to compare the Department of Homeland Security senior career 

and political staffing levels and senior career training programs 

with those of similarly structured cabinet-level agencies. 

SEC. 4405. (a) IN GENERAL.—With respect to contracts entered 

into after June 1, 2007, and except as provided in subsection (b), 

no entity performing lead system integrator functions in the acquisition of a major system by the Department of Homeland Security 

may have any direct financial interest in the development or 

construction of any individual system or element of any system 

of systems. 

(b) EXCEPTION.—An entity described in subsection (a) may have 

a direct financial interest in the development or construction of 

an individual system or element of a system of systems if—

(1) the Secretary of Homeland Security certifies to the 

Committees on Appropriations of the Senate and the House 

of Representatives, the Committee on Homeland Security of 

the House of Representatives, the Committee on Transportation 

and Infrastructure of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the 

Senate, and the Committee on Commerce, Science and 

Transportation of the Senate that—

(A) the entity was selected by the Department of Homeland Security as a contractor to develop or construct the 

system or element concerned through the use of competitive 

procedures; and 

(B) the Department took appropriate steps to prevent 

any organizational conflict of interest in the selection 

process; or 

(2) the entity was selected by a subcontractor to serve 

as a lower-tier subcontractor, through a process over which 

the entity exercised no control. 

(c) CONSTRUCTION.—Nothing in this section shall be construed 

to preclude an entity described in subsection (a) from performing 

work necessary to integrate two or more individual systems or 

elements of a system of systems with each other. 

(d) REGULATIONS UPDATE.—Not later than June 1, 2007, the 

Secretary of Homeland Security shall update the acquisition regulations of the Department of Homeland Security in order to specify 

fully in such regulations the matters with respect to lead system 

integrators set forth in this section. Included in such regulations 

shall be: (1) a precise and comprehensive definition of the term 

‘‘lead system integrator’’, modeled after that used by the Department of Defense; and (2) a specification of various types of contracts 

and fee structures that are appropriate for use by lead system 

integrators in the production, fielding, and sustainment of complex 

systems. 

CHAPTER 5

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4501. Section 20515 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by inserting before the period: 

‘‘; and of which, not to exceed $143,628,000 shall be available 
H. R. 1591—55

for contract support costs under the terms and conditions contained 

in Public Law 109–54’’. 

SEC. 4502. Section 20512 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by inserting after the first dollar 

amount: ‘‘, of which not to exceed $7,300,000 shall be transferred 

to the ‘Indian Health Facilities’ account; the amount in the second 

proviso shall be $18,000,000; the amount in the third proviso shall 

be $525,099,000; the amount in the ninth proviso shall be 

$269,730,000; and the $15,000,000 allocation of funding under the 

eleventh proviso shall not be required’’. 

SEC. 4503. Section 20501 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by inserting after ‘‘$55,663,000’’ 

the following: ‘‘of which $13,000,000 shall be for Save America’s 

Treasures’’. 

SEC. 4504. Funds made available to the United States Fish 

and Wildlife Service for fiscal year 2007 under the heading ‘‘Land 

Acquisition’’ may be used for land conservation partnerships authorized by the Highlands Conservation Act of 2004. 

CHAPTER 6

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

NATIONAL INSTITUTES OF HEALTH

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

(TRANSFER OF FUNDS)

Of the amount provided by the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) for ‘‘National Institute of Allergy and Infectious 

Diseases’’, $49,500,000 shall be transferred to ‘‘Public Health and 

Social Services Emergency Fund’’ to carry out activities relating 

to advanced research and development as provided by section 319L 

of the Public Health Service Act. 

OFFICE OF THE DIRECTOR

(TRANSFER OF FUNDS)

Of the amount provided by the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) for ‘‘Office of the Director’’, $49,500,000 shall 

be transferred to ‘‘Public Health and Social Services Emergency 

Fund’’ to carry out activities relating to advanced research and 

development as provided by section 319L of the Public Health 

Service Act. 

NATIONAL COUNCIL ON DISABILITY

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $300,000, to remain available until expended, for necessary 

expenses related to the requirements of the Post-Katrina Emergency 

Management Reform Act of 2006, as enacted by the Department 
H. R. 1591—56

of Homeland Security Appropriations Act, 2007 (Public Law 109–

295). 

GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING TRANSFERS OF FUNDS AND RESCISSION)

SEC. 4601. Section 20602 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by inserting the following after 

‘‘$5,000,000’’: ‘‘(together with an additional $7,000,000 which shall 

be transferred by the Pension Benefit Guaranty Corporation as 

an authorized administrative cost), to remain available through 

September 30, 2008,’’. 

SEC. 4602. Section 20607 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by inserting ‘‘of which $9,666,000 

shall be for the Women’s Bureau,’’ after ‘‘for child labor activities,’’. 

SEC. 4603. Of the amount provided for ‘‘Department of Health 

and Human Services, Health Resources and Services Administration, Health Resources and Services’’ in the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as 

amended by Public Law 110–5), $23,000,000 shall be for Poison 

Control Centers. 

SEC. 4604. From the amounts made available by the Continuing 

Appropriations Resolution, 2007 (division B of Public Law 109–

289, as amended by Public Law 110–5) for the Office of the Secretary, General Departmental Management under the Department 

of Health and Human Services, $1,000,000 are rescinded. 

SEC. 4605. Section 20625(b)(1) of the Continuing Appropriations 

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

by Public Law 110–5) is amended by— (1) striking ‘‘$7,172,994,000’’ and inserting ‘‘$7,176,431,000’’; 

(2) amending subparagraph (A) to read as follows: ‘‘(A) $5,454,824,000 shall be for basic grants under section 1124 

of the Elementary and Secondary Education Act of 1965 

(ESEA), of which up to $3,437,000 shall be available to the 

Secretary of Education on October 1, 2006, to obtain annually 

updated educational-agency-level census poverty data from the 

Bureau of the Census;’’; and 

(3) amending subparagraph (C) to read as follows: ‘‘(C) not to exceed $2,352,000 may be available for section 1608 

of the ESEA and for a clearinghouse on comprehensive school 

reform under part D of title V of the ESEA;’’. 

SEC. 4606. The provision in the first proviso under the heading 

‘‘Rehabilitation Services and Disability Research’’ in the Department 

of Education Appropriations Act, 2006, relating to alternative 

financing programs under section 4(b)(2)(D) of the Assistive Technology Act of 1998 shall not apply to funds appropriated by the 

Continuing Appropriations Resolution, 2007. 

SEC. 4607. Notwithstanding sections 20639 and 20640 of the 

Continuing Appropriations Resolution, 2007, as amended by section 

2 of the Revised Continuing Appropriations Resolution, 2007 (Public 

Law 110–5), the Chief Executive Officer of the Corporation for 

National and Community Service may transfer an amount of not 

more than $1,360,000 from the account under the heading ‘‘National 

and Community Service Programs, Operating Expenses’’ under the 
H. R. 1591—57

heading ‘‘Corporation for National and Community Service’’, to the 

account under the heading ‘‘Salaries and Expenses’’ under the 

heading ‘‘Corporation for National and Community Service’’. 

SEC. 4608. (a) Section 1310.12(a) of title 45, Code of Federal 

Regulations, shall take effect 30 days after the date of enactment 

of this Act. 

(b)(1) Notwithstanding subsection (a), any vehicle used to transport children for a Head Start program as of January 1, 2007, 

shall not be subject to a requirement under such section (including 

a requirement based on the definitions set forth or referenced 

in section 1310.3 or any other provision set forth or referenced 

in part 1310 of such title, or any corresponding similar regulation 

or ruling) regarding rear emergency exit doors, for 1 year after 

that date of enactment. 

(2) Not later than 60 days after the National Highway Traffic 

Safety Administration of the Department of Transportation submits 

its study on occupant protection on Head Start transit vehicles 

(related to Government Accountability Office report GAO–06–767R), 

the Secretary of Health and Human Services shall review and 

shall revise as necessary the allowable alternate vehicle standards 

described in that part 1310 (or any corresponding similar regulation 

or ruling) relating to allowable alternate vehicles used to transport 

children for a Head Start program. In making any such revision, 

the Secretary shall revise the standards to be consistent with the 

findings contained in such study, including making a determination 

on the exemption of such a vehicle from Federal seat spacing 

requirements, and Federal supporting seating requirements related 

to compartmentalization, if such vehicle meets all other applicable 

Federal motor vehicle safety standards, including standards for 

seating systems, occupant crash protection, seat belt assemblies, 

and child restraint anchorage systems consistent with that part 

1310 (or any corresponding similar regulation or ruling). 

(3) Notwithstanding subsection (a), until such date as the Secretary of Health and Human Services completes the review and 

any necessary revision specified in paragraph (2), the provisions 

of section 1310.12(a) relating to Federal seat spacing requirements, 

and Federal supporting seating requirements related to 

compartmentalization, for allowable alternate vehicles used to 

transport children for a Head Start program, shall not apply to 

such a vehicle if such vehicle meets all other applicable Federal 

motor vehicle safety standards, as described in paragraph (2). 

CHAPTER 7

LEGISLATIVE BRANCH 

HOUSE OF REPRESENTATIVES 

PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF

CONGRESS

For payment to Gloria W. Norwood, widow of Charles W. Norwood, Jr., late a Representative from the State of Georgia, $165,200. 
H. R. 1591—58

CHAPTER 8

GENERAL PROVISIONS—THIS CHAPTER 

TECHNICAL AMENDMENT

SEC. 4801. (a) Notwithstanding any other provision of law, 

subsection (c) under the heading ‘‘Assistance for the Independent 

States of the Former Soviet Union’’ in Public Law 109–102, shall 

not apply to funds appropriated by the Continuing Appropriations 

Resolution, 2007 (Public Law 109–289, division B) as amended 

by Public Laws 109–369, 109–383, and 110–5. 

(b) Section 534(k) of the Foreign Operations, Export Financing, 

and Related Programs Appropriations Act, 2006 (Public Law 109–

102) is amended, in the second proviso, by inserting after ‘‘subsection (b) of that section’’ the following: ‘‘and the requirement 

that a majority of the members of the board of directors be United 

States citizens provided in subsection (d)(3)(B) of that section’’. 

(c) Subject to section 101(c)(2) of the Continuing Appropriations 

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

by Public Law 110–5), the amount of funds appropriated for ‘‘Foreign Military Financing Program’’ pursuant to such Resolution shall 

be construed to be the total of the amount appropriated for such 

program by section 20401 of that Resolution and the amount made 

available for such program by section 591 of the Foreign Operations, 

Export Financing, and Related Programs Appropriations Act, 2006 

(Public Law 109–102) which is made applicable to the fiscal year 

2007 by the provisions of such Resolution. 

SEC. 4802. Notwithstanding any provision of title I of division 

B of the Continuing Appropriations Resolution, 2007 (division B 

of Public Law 109–289, as amended by Public Laws 109–369, 109–

383, and 110–5), the dollar amount limitation of the first proviso 

under the heading, ‘‘Administration of Foreign Affairs, Diplomatic 

and Consular Programs’’, in title IV of the Science, State, Justice, 

Commerce, and Related Agencies Appropriations Act, 2006 (Public 

Law 109–108; 119 Stat. 2319) shall not apply to funds appropriated 

under such heading for fiscal year 2007. 

CHAPTER 9

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount to carry out the Federal Housing 

Enterprises Financial Safety and Soundness Act of 1992, 

$6,150,000, to remain available until expended, to be derived from 

the Federal Housing Enterprises Oversight Fund and to be subject 

to the same terms and conditions pertaining to funds provided 

under this heading in Public Law 109–115: Provided, That not 

to exceed the total amount provided for these activities for fiscal 

year 2007 shall be available from the general fund of the Treasury 

to the extent necessary to incur obligations and make expenditures 

pending the receipt of collections to the Fund: Provided further,
H. R. 1591—59

That the general fund amount shall be reduced as collections are 

received during the fiscal year so as to result in a final appropriation 

from the general fund estimated at not more than $0. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4901. Hereafter, funds limited or appropriated for the 

Department of Transportation may be obligated or expended to 

grant authority to a Mexican motor carrier to operate beyond United 

States municipalities and commercial zones on the United StatesMexico border only to the extent that—

(1) granting such authority is first tested as part of a 

pilot program; 

(2) such pilot program complies with the requirements 

of section 350 of Public Law 107–87 and the requirements 

of section 31315(c) of title 49, United States Code, related 

to pilot programs; and 

(3) simultaneous and comparable authority to operate 

within Mexico is made available to motor carriers domiciled 

in the United States. 

SEC. 4902. Funds provided for the ‘‘National Transportation 

Safety Board, Salaries and Expenses’’ in section 21031 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 

109–289, as amended by Public Law 110–5) include amounts necessary to make lease payments due in fiscal year 2007 only, on 

an obligation incurred in 2001 under a capital lease. 

SEC. 4903. Section 21033 of the Continuing Appropriations 

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

by Public Law 110–5) is amended by adding after the second proviso: 

‘‘: Provided further, That paragraph (2) under such heading in 

Public Law 109–115 (119 Stat. 2441) shall be funded at 

$149,300,000, but additional section 8 tenant protection rental 

assistance costs may be funded in 2007 by using unobligated balances, notwithstanding the purposes for which such amounts were 

appropriated, including recaptures and carryover, remaining from 

funds appropriated to the Department of Housing and Urban 

Development under this heading, the heading ‘Annual Contributions 

for Assisted Housing’, the heading ‘Housing Certificate Fund’, and 

the heading ‘Project-Based Rental Assistance’ for fiscal year 2006 

and prior fiscal years: Provided further, That paragraph (3) under 

such heading in Public Law 109–115 (119 Stat. 2441) shall be 

funded at $47,500,000: Provided further, That paragraph (4) under 

such heading in Public Law 109–115 (119 Stat. 2441) shall be 

funded at $5,900,000: Provided further, That paragraph (5) under 

such heading in Public Law 109–115 (119 Stat. 2441) shall be 

funded at $1,281,100,000, of which $1,251,100,000 shall be allocated 

for the calendar year 2007 funding cycle on a pro rata basis to 

public housing agencies based on the amount public housing agencies were eligible to receive in calendar year 2006, and of which 

up to $30,000,000 shall be available to the Secretary to allocate 

to public housing agencies that need additional funds to administer 

their section 8 programs, with up to $20,000,000 to be for fees 

associated with section 8 tenant protection rental assistance’’. 

SEC. 4904. Section 232(b) of the Departments of Veterans 

Affairs and Housing and Urban Development, and Independent 

Agencies Appropriations Act, 2001 (Public Law 106–377) is amended 

to read as follows: 
H. R. 1591—60

‘‘(b) APPLICABILITY.—In the case of any dwelling unit that, 

upon the date of the enactment of this Act, is assisted under 

a housing assistance payment contract under section 8(o)(13) as 

in effect before such enactment, or under section 8(d)(2) of the 

United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)) as in 

effect before the enactment of the Quality Housing and Work 

Responsibility Act of 1998 (title V of Public Law 105–276), assistance may be renewed or extended under such section 8(o)(13), 

as amended by subsection (a), provided that the initial contract 

term and rent of such renewed or extended assistance shall be 

determined pursuant to subparagraphs (F) and (H), and subparagraphs (C) and (D) of such section shall not apply to such extensions 

or renewals.’’. 

CHAPTER 10

GENERAL PROVISIONS—THIS ACT 

AVAILABILITY OF FUNDS

SEC. 4950. No part of any appropriation contained in this 

Act shall remain available for obligation beyond the current fiscal 

year unless expressly so provided herein. 

DESIGNATION FOR TITLE I

SEC. 4951. Amounts in title I are designated as emergency 

requirements pursuant to section 402 of H. Con. Res. 95 (109th 

Congress), and as making appropriations for contingency operations 

directly related to the global war on terrorism and other unanticipated defense-related operations pursuant to section 402 of H. Con. 

Res. 376 (109th Congress) as made applicable to the House of 

Representatives by section 511(a)(4) of H. Res. 6 (110th Congress). 

EMERGENCY DESIGNATION FOR OTHER TITLES

SEC. 4952. Amounts in titles II, III, V, and VI are designated 

as emergency requirements pursuant to section 402 of H. Con. 

Res. 95 (109th Congress), and pursuant to section 501 of H. Con. 

Res. 376 (109th Congress) as made applicable to the House of 

Representatives by section 511(a)(4) of H. Res. 6 (110th Congress). 

TITLE V 

AGRICULTURAL ASSISTANCE 

SEC. 5101. CROP DISASTER ASSISTANCE. 

(a) ASSISTANCE AVAILABLE.—There are hereby appropriated to 

the Secretary of Agriculture such sums as are necessary, to remain 

available until expended, to make emergency financial assistance 

available to producers on a farm that incurred qualifying quantity 

or quality losses for the 2005 or 2006 crop, or that part of the 

2007 crop year before February 28, 2007, due to damaging weather 

or any related condition (including losses due to crop diseases, 

insects, and delayed planting), as determined by the Secretary. 

However, to be eligible for assistance, the crop subject to the loss 

must have been planted before February 28, 2007 or, in the case 

of prevented planting or other total loss, would have been planted 
H. R. 1591—61

before February 28, 2007 in the absence of the damaging weather 

or any related condition. 

(b) ELECTION OF CROP YEAR.—If a producer incurred qualifying 

crop losses in more than one of the 2005, 2006, or 2007 crop 

years, the producer shall elect to receive assistance under this 

section for losses incurred in only one of such crop years. The 

producer may not receive assistance under this section for more 

than one crop year. 

(c) ADMINISTRATION.—

(1) IN GENERAL.—Except as provided in paragraph (2), the 

Secretary of Agriculture shall make assistance available under 

this section in the same manner as provided under section 

815 of the Agriculture, Rural Development, Food and Drug 

Administration and Related Agencies Appropriations Act, 2001 

(Public Law 106–387; 114 Stat. 1549A–55), including using 

the same loss thresholds for quantity and economic losses as 

were used in administering that section, except that the payment rate shall be 50 percent of the established price, instead 

of 65 percent. 

(2) LOSS THRESHOLDS FOR QUALITY LOSSES.—In the case 

of a payment for quality loss for a crop under subsection (a), 

the loss thresholds for quality loss for the crop shall be determined under subsection (d). 

(d) QUALITY LOSSES.—

(1) IN GENERAL.—Subject to paragraph (3), the amount 

of a payment made to producers on a farm for a quality loss 

for a crop under subsection (a) shall be equal to the amount 

obtained by multiplying—

(A) 65 percent of the payment quantity determined 

under paragraph (2); by 

(B) 50 percent of the payment rate determined under 

paragraph (3). 

(2) PAYMENT QUANTITY.—For the purpose of paragraph 

(1)(A), the payment quantity for quality losses for a crop of 

a commodity on a farm shall equal the lesser of—

(A) the actual production of the crop affected by a 

quality loss of the commodity on the farm; or 

(B) the quantity of expected production of the crop 

affected by a quality loss of the commodity on the farm, 

using the formula used by the Secretary of Agriculture 

to determine quantity losses for the crop of the commodity 

under subsection (a). 

(3) PAYMENT RATE.—For the purpose of paragraph (1)(B) 

and in accordance with paragraphs (5) and (6), the payment 

rate for quality losses for a crop of a commodity on a farm 

shall be equal to the difference between—

(A) the per unit market value that the units of the 

crop affected by the quality loss would have had if the 

crop had not suffered a quality loss; and 

(B) the per unit market value of the units of the 

crop affected by the quality loss. 

(4) ELIGIBILITY.—For producers on a farm to be eligible 

to obtain a payment for a quality loss for a crop under subsection (a), the amount obtained by multiplying the per unit 

loss determined under paragraph (1) by the number of units 

affected by the quality loss shall be at least 25 percent of 
H. R. 1591—62

the value that all affected production of the crop would have 

had if the crop had not suffered a quality loss. 

(5) MARKETING CONTRACTS.—In the case of any production 

of a commodity that is sold pursuant to one or more marketing 

contracts (regardless of whether the contract is entered into 

by the producers on the farm before or after harvest) and 

for which appropriate documentation exists, the quantity designated in the contracts shall be eligible for quality loss assistance based on the one or more prices specified in the contracts. 

(6) OTHER PRODUCTION.—For any additional production of 

a commodity for which a marketing contract does not exist 

or for which production continues to be owned by the producer, 

quality losses shall be based on the average local market discounts for reduced quality, as determined by the appropriate 

State committee of the Farm Service Agency. 

(7) QUALITY ADJUSTMENTS AND DISCOUNTS.—The appropriate State committee of the Farm Service Agency shall identify the appropriate quality adjustment and discount factors 

to be considered in carrying out this subsection, including—

(A) the average local discounts actually applied to a 

crop; and 

(B) the discount schedules applied to loans made by 

the Farm Service Agency or crop insurance coverage under 

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 

(8) ELIGIBLE PRODUCTION.—The Secretary of Agriculture 

shall carry out this subsection in a fair and equitable manner 

for all eligible production, including the production of fruits 

and vegetables, other specialty crops, and field crops. 

(e) PAYMENT LIMITATIONS.—

(1) LIMIT ON AMOUNT OF ASSISTANCE.—Assistance provided 

under this section to a producer for losses to a crop, together 

with the amounts specified in paragraph (2) applicable to the 

same crop, may not exceed 95 percent of what the value of 

the crop would have been in the absence of the losses, as 

estimated by the Secretary of Agriculture. 

(2) OTHER PAYMENTS.—In applying the limitation in paragraph (1), the Secretary shall include the following: 

(A) Any crop insurance payment made under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or payment 

under section 196 of the Federal Agricultural Improvement 

and Reform Act of 1996 (7 U.S.C. 7333) that the producer 

receives for losses to the same crop. 

(B) The value of the crop that was not lost (if any), 

as estimated by the Secretary. 

(f) ELIGIBILITY REQUIREMENTS AND LIMITATIONS.—The producers on a farm shall not be eligible for assistance under this 

section with respect to losses to an insurable commodity or noninsurable commodity if the producers on the farm—

(1) in the case of an insurable commodity, did not obtain 

a policy or plan of insurance for the insurable commodity under 

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for 

the crop incurring the losses; 

(2) in the case of a noninsurable commodity, did not file 

the required paperwork, and pay the administrative fee by 
H. R. 1591—63

the applicable State filing deadline, for the noninsurable commodity under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) for the crop 

incurring the losses; or 

(3) were not in compliance with highly erodible land conservation and wetland conservation provisions. 

(g) TIMING.—

(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

of Agriculture shall make payments to producers on a farm 

for a crop under this section not later than 60 days after 

the date the producers on the farm submit to the Secretary 

a completed application for the payments. 

(2) INTEREST.—If the Secretary does not make payments 

to the producers on a farm by the date described in paragraph 

(1), the Secretary shall pay to the producers on a farm interest 

on the payments at a rate equal to the current (as of the 

sign-up deadline established by the Secretary) market yield 

on outstanding, marketable obligations of the United States 

with maturities of 30 years. 

(h) DEFINITIONS.—In this section: 

(1) INSURABLE COMMODITY.—The term ‘‘insurable commodity’’ means an agricultural commodity (excluding livestock) 

for which the producers on a farm are eligible to obtain a 

policy or plan of insurance under the Federal Crop Insurance 

Act (7 U.S.C. 1501 et seq.). 

(2) NONINSURABLE COMMODITY.—The term ‘‘noninsurable 

commodity’’ means a crop for which the producers on a farm 

are eligible to obtain assistance under section 196 of the Federal 

Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7333). 

SEC. 5102. LIVESTOCK ASSISTANCE. 

(a) LIVESTOCK COMPENSATION PROGRAM.—

(1) AVAILABILITY OF ASSISTANCE.—There are hereby appropriated to the Secretary of Agriculture such sums as are necessary, to remain available until expended, to carry out the 

livestock compensation program established under subpart B 

of part 1416 of title 7, Code of Federal Regulations, as 

announced by the Secretary on February 12, 2007 (72 Fed. 

Reg. 6443), to provide compensation for livestock losses between 

January 1, 2005 and February 28, 2007, due to a disaster, 

as determined by the Secretary (including losses due to blizzards that started in 2006 and continued into January 2007). 

However, the payment rate for compensation under this subsection shall be 70 percent of the payment rate otherwise 

applicable under such program. In addition, section 

1416.102(b)(2)(ii) of title 7, Code of Federal Regulations (72 

Fed. Reg. 6444) shall not apply. 

(2) ELIGIBLE APPLICANTS.—In carrying out the program 

described in paragraph (1), the Secretary shall provide assistance to any applicant that—

(A) conducts a livestock operation that is located in 

a disaster county with eligible livestock specified in paragraph (1) of section 1416.102(a) of title 7, Code of Federal 

Regulations (72 Fed. Reg. 6444), an animal described in 

section 10806(a)(1) of the Farm Security and Rural Investment Act of 2002 (21 U.S.C. 321d(a)(1)), or other animals 
H. R. 1591—64

designated by the Secretary as livestock for purposes of 

this subsection; and 

(B) meets the requirements of paragraphs (3) and (4) 

of section 1416.102(a) of title 7, Code of Federal Regulations, and all other eligibility requirements established by 

the Secretary for the program. 

(3) ELECTION OF LOSSES.—

(A) If a producer incurred eligible livestock losses in 

more than one of the 2005, 2006, or 2007 calendar years, 

the producer shall elect to receive payments under this 

subsection for losses incurred in only one of such calendar 

years, and such losses must have been incurred in a county 

declared or designated as a disaster county in that same 

calendar year. 

(B) Producers may elect to receive compensation for 

losses in the calendar year 2007 grazing season that are 

attributable to wildfires occurring during the applicable 

period, as determined by the Secretary. 

(4) MITIGATION.—In determining the eligibility for or 

amount of payments for which a producer is eligible under 

the livestock compensation program, the Secretary shall not 

penalize a producer that takes actions (recognizing disaster 

conditions) that reduce the average number of livestock the 

producer owned for grazing during the production year for 

which assistance is being provided. 

(5) DEFINITIONS.—In this subsection: 

(A) DISASTER COUNTY.—The term ‘‘disaster county’’ 

means—

(i) a county included in the geographic area covered 

by a natural disaster declaration; and 

(ii) each county contiguous to a county described 

in clause (i). 

(B) NATURAL DISASTER DECLARATION.—The term ‘‘natural disaster declaration’’ means—

(i) a natural disaster declared by the Secretary 

between January 1, 2005 and February 28, 2007, under 

section 321(a) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1961(a)); 

(ii) a major disaster or emergency designated by 

the President between January 1, 2005 and February 

28, 2007, under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

or 

(iii) a determination of a Farm Service Agency 

Administrator’s Physical Loss Notice if such notice 

applies to a county included under (ii). 

(b) LIVESTOCK INDEMNITY PAYMENTS.—

(1) AVAILABILITY OF ASSISTANCE.—There are hereby appropriated to the Secretary of Agriculture such sums as are necessary, to remain available until expended, to make livestock 

indemnity payments to producers on farms that have incurred 

livestock losses between January 1, 2005 and February 28, 

2007, due to a disaster, as determined by the Secretary 

(including losses due to blizzards that started in 2006 and 

continued into January 2007) in a disaster county. To be eligible 

for assistance, applicants must meet all eligibility requirements 

established by the Secretary for the program. 
H. R. 1591—65

(2) ELECTION OF LOSSES.—If a producer incurred eligible 

livestock losses in more than one of the 2005, 2006, or 2007 

calendar years, the producer shall elect to receive payments 

under this subsection for losses incurred in only one of such 

calendar years. The producer may not receive payments under 

this subsection for more than one calendar year. 

(3) PAYMENT RATES.—Indemnity payments to a producer 

on a farm under paragraph (1) shall be made at a rate of 

not less than 30 percent of the market value of the applicable 

livestock on the day before the date of death of the livestock, 

as determined by the Secretary. 

(4) LIVESTOCK DEFINED.—In this subsection, the term ‘‘livestock’’ means an animal that—

(A) is specified in clause (i) of section 1416.203(a)(2) 

of title 7, Code of Federal Regulations (72 Fed. Reg. 6445), 

or is designated by the Secretary as livestock for purposes 

of this subsection; and 

(B) meets the requirements of clauses (iii) and (iv) 

of such section. 

(5) DEFINITIONS.—In this subsection: 

(A) DISASTER COUNTY.—The term ‘‘disaster county’’ 

means—

(i) a county included in the geographic area covered 

by a natural disaster declaration; and 

(ii) each county contiguous to a county described 

in clause (i). 

(B) NATURAL DISASTER DECLARATION.—The term ‘‘natural disaster declaration’’ means—

(i) a natural disaster declared by the Secretary 

between January 1, 2005 and February 28, 2007 under 

section 321(a) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1961(a)); 

(ii) a major disaster or emergency designated by 

the President between January 1, 2005 and February 

28, 2007 under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

or 

(iii) a determination of a Farm Service Agency 

Administrator’s Physical Loss Notice if such notice 

applies to a county included under (ii). 

SEC. 5103. EMERGENCY CONSERVATION PROGRAM. 

There is hereby appropriated to the Secretary of Agriculture 

$20,000,000, to remain available until expended, to provide assistance under the Emergency Conservation Program under title IV 

of the Agriculture Credit Act of 1978 (16 U.S.C. 2201 et seq.) 

for the cleanup and restoration of farm and agricultural production 

lands. 

SEC. 5104. PAYMENT LIMITATIONS. 

(a) REDUCTION IN PAYMENTS TO REFLECT PAYMENTS FOR SAME

OR SIMILAR LOSSES.—The amount of any payment for which a 

producer is eligible under sections 5101 and 5102 shall be reduced 

by any amount received by the producer for the same loss or 

any similar loss under—

(1) the Department of Defense, Emergency Supplemental 

Appropriations to Address Hurricanes in the Gulf of Mexico, 
H. R. 1591—66

and Pandemic Influenza Act, 2006 (Public Law 109–148; 119 

Stat. 2680); 

(2) an agricultural disaster assistance provision contained 

in the announcement of the Secretary on January 26, 2006, 

or August 29, 2006; or 

(3) the Emergency Supplemental Appropriations Act for 

Defense, the Global War on Terror, and Hurricane Recovery, 

2006 (Public Law 109–234; 120 Stat. 418). 

(b) ADJUSTED GROSS INCOME LIMITATION.—Section 1001D of 

the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall apply with 

respect to assistance provided under sections 5101, 5102, and 5103. 

SEC. 5105. ADMINISTRATION. 

(a) REGULATIONS.—The Secretary of Agriculture may promulgate such regulations as are necessary to implement sections 5101 

and 5102. 

(b) PROCEDURE.—The promulgation of the implementing regulations and the administration of sections 5101 and 5102 shall be 

made without regard to—

(1) the notice and comment provisions of section 553 of 

title 5, United States Code; 

(2) the Statement of Policy of the Secretary of Agriculture 

effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 

of proposed rulemaking and public participation in rulemaking; 

and 

(3) chapter 35 of title 44, United States Code (commonly 

known as the ‘‘Paperwork Reduction Act’’). 

(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In carrying out this section, the Secretary of Agriculture shall use the 

authority provided under section 808 of title 5, United States Code. 

(d) USE OF COMMODITY CREDIT CORPORATION; LIMITATION.—

In implementing sections 5101 and 5102, the Secretary of Agriculture may use the facilities, services, and authorities of the Commodity Credit Corporation. The Corporation shall not make any 

expenditures to carry out sections 5101 and 5102 unless funds 

have been specifically appropriated for such purpose. 

SEC. 5106. MILK INCOME LOSS CONTRACT PROGRAM. 

Section 1502(c)(3) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 7982(c)(3)) is amended—

(1) in subparagraph (A), by adding ‘‘and’’ at the end; 

(2) in subparagraph (B), by striking ‘‘August’’ and all that 

follows through the end and inserting ‘‘September 30, 2007, 

34 percent.’’; and 

(3) by striking subparagraph (C). 

SEC. 5107. DAIRY ASSISTANCE. 

There is hereby appropriated $20,000,000 to make payments 

to dairy producers for dairy production losses in disaster counties, 

as defined in section 5102 of this title, to remain available until 

expended. 

SEC. 5108. NONINSURED CROP ASSISTANCE PROGRAM. 

For states in which there is a shortage of claims adjustors, 

as determined by the Secretary, the Secretary shall permit the 

use of one claims adjustor certified by the Secretary in carrying 

out 7 CFR 1437.401. 
H. R. 1591—67

SEC. 5109. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT 

AND SEASONAL FARMWORKERS. 

There is hereby appropriated $21,000,000 to carry out section 

2281 of the Food, Agriculture, Conservation and Trade Act of 1990 

(42 U.S.C. 5177a), to remain available until expended. 

SEC. 5110. CONSERVATION SECURITY PROGRAM. 

Section 20115 of Public Law 110–5 is amended by striking 

‘‘section 726’’ and inserting in lieu thereof ‘‘section 726; section 

741’’. 

SEC. 5111. ADMINISTRATIVE EXPENSES. 

There is hereby appropriated $30,000,000 for the ‘‘Farm Service 

Agency, Salaries and Expenses’’, to remain available until September 30, 2008. 

SEC. 5112. CONTRACT WAIVER. 

In carrying out crop disaster and livestock assistance in this 

title, the Secretary shall require forage producers to have participated in a crop insurance pilot program or the Non-Insured Crop 

Disaster Assistance Program during the crop year for which compensation is received. 

TITLE VI 

ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE

CHILDREN’S HEALTH INSURANCE FUND

For an additional amount to provide additional allotments to 

remaining shortfall States under section 2104(h)(4) of the Social 

Security Act, as inserted by section 6001, such sums as may be 

necessary, but not to exceed $650,000,000 for fiscal year 2007, 

to remain available until expended. 

SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUNDING SHORTFALLS FOR FISCAL YEAR 2007. 

(a) ELIMINATION OF REMAINDER OF FUNDING SHORTFALLS, 

TIERED MATCH, AND OTHER LIMITATION ON EXPENDITURES.—Section 

2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as added 

by section 201(a) of the National Institutes of Health Reform Act 

of 2006 (Public Law 109–482), is amended—

(1) in the heading for paragraph (2), by striking 

‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; and 

(2) by striking paragraph (4) and inserting the following: 

‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE REMAINDER OF

FISCAL YEAR 2007 FUNDING SHORTFALLS.—

‘‘(A) IN GENERAL.—From the amounts provided in 

advance in appropriations Acts, the Secretary shall allot 

to each remaining shortfall State described in subparagraph (B) such amount as the Secretary determines will 

eliminate the estimated shortfall described in such 

subparagraph for the State for fiscal year 2007. 

‘‘(B) REMAINING SHORTFALL STATE DESCRIBED.—For 

purposes of subparagraph (A), a remaining shortfall State 
H. R. 1591—68

is a State with a State child health plan approved under 

this title for which the Secretary estimates, on the basis 

of the most recent data available to the Secretary as of 

the date of the enactment of this paragraph, that the 

projected Federal expenditures under such plan for the 

State for fiscal year 2007 will exceed the sum of—

‘‘(i) the amount of the State’s allotments for each 

of fiscal years 2005 and 2006 that will not be expended 

by the end of fiscal year 2006; 

‘‘(ii) the amount of the State’s allotment for fiscal 

year 2007; and 

‘‘(iii) the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance 

with paragraphs (1) and (2).’’. 

(b) CONFORMING AMENDMENTS.—Section 2104(h) of such Act 

(42 U.S.C. 1397dd(h)) (as so added), is amended—

(1) in paragraph (1)(B), by striking ‘‘subject to paragraph 

(4)(B) and’’; 

(2) in paragraph (2)(B), by striking ‘‘subject to paragraph 

(4)(B) and’’; 

(3) in paragraph (5)(A), by striking ‘‘and (3)’’ and inserting 

‘‘(3), and (4)’’; and 

(4) in paragraph (6)—

(A) in the first sentence—

(i) by inserting ‘‘or allotted’’ after ‘‘redistributed’’; 

and 

(ii) by inserting ‘‘or allotments’’ after ‘‘redistributions’’; and 

(B) by striking ‘‘and (3)’’ and inserting ‘‘(3), and (4)’’. 

SEC. 6002. (a) PROHIBITION.—

(1) LIMITATION ON SECRETARIAL AUTHORITY.—Notwithstanding any other provision of law, the Secretary of Health 

and Human Services shall not, prior to the date that is 1 

year after the date of enactment of this Act, take any action 

(through promulgation of regulation, issuance of regulatory 

guidance, or other administrative action) to—

(A) finalize or otherwise implement provisions contained in the proposed rule published on January 18, 2007, 

on pages 2236 through 2248 of volume 72, Federal Register 

(relating to parts 433, 447, and 457 of title 42, Code of 

Federal Regulations); 

(B) promulgate or implement any rule or provisions 

similar to the provisions described in subparagraph (A) 

pertaining to the Medicaid program established under title 

XIX of the Social Security Act or the State Children’s 

Health Insurance Program established under title XXI of 

such Act; or 

(C) promulgate or implement any rule or provisions 

restricting payments for graduate medical education under 

the Medicaid program. 

(2) CONTINUATION OF OTHER SECRETARIAL AUTHORITY.—

The Secretary of Health and Human Service shall not be prohibited during the period described in paragraph (1) from taking 

any action (through promulgation of regulation, issuance of 

regulatory guidance, or other administrative action) to enforce 

a provision of law in effect as of the date of enactment of 

this Act with respect to the Medicaid program or the State 
H. R. 1591—69

Children’s Health Insurance Program, or to promulgate or 

implement a new rule or provision during such period with 

respect to such programs, other than a rule or provision 

described in paragraph (1) and subject to the prohibition set 

forth in that paragraph. 

(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT PRESCRIPTION

PADS UNDER THE MEDICAID PROGRAM.— (1) IN GENERAL.—Section 1903(i) of the Social Security 

Act (42 U.S.C. 1396b(i)) is amended—

(A) by striking ‘‘or’’ at the end of paragraph (21); 

(B) by striking the period at the end of paragraph 

(22) and inserting ‘‘; or’’; and 

(C) by inserting after paragraph (22) the following 

new paragraph: 

‘‘(23) with respect to amounts expended for medical assistance for covered outpatient drugs (as defined in section 

1927(k)(2)) for which the prescription was executed in written 

(and non-electronic) form unless the prescription was executed 

on a tamper-resistant pad.’’. 

(2) EFFECTIVE DATE.—The amendments made by paragraph 

(1) shall apply to prescriptions executed after September 30, 

2007. 

(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIVERS.—

(1) AUTHORITY TO CONTINUE TO OPERATE WAIVERS.—Notwithstanding any other provision of law, any State that is 

operating a Pharmacy Plus waiver described in paragraph (2) 

which would otherwise expire on June 30, 2007, may elect 

to continue to operate the waiver through December 31, 2009. 

(2) PHARMACY PLUS WAIVER DESCRIBED.—For purposes of 

paragraph (1), a Pharmacy Plus waiver described in this paragraph is a waiver approved by the Secretary of Health and 

Human Services under the authority of section 1115 of the 

Social Security Act (42 U.S.C. 1315) that provides coverage 

for prescription drugs for individuals who have attained age 

65 and whose family income does not exceed 200 percent of 

the poverty line (as defined in section 2110(c)(5) of such Act 

(42 U.S.C. 1397jj(c)(5)). 

TITLE VII 

FAIR MINIMUM WAGE AND TAX RELIEF 

Subtitle A—Fair Minimum Wage 

SEC. 7000. SHORT TITLE. 

This subtitle may be cited as the ‘‘Fair Minimum Wage Act 

of 2007’’. 

SEC. 7001. MINIMUM WAGE. 

(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor Standards 

Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows: 

‘‘(1) except as otherwise provided in this section, not less 

than—

‘‘(A) $5.85 an hour, beginning on the 60th day after 

the date of enactment of the Fair Minimum Wage Act 

of 2007; 
H. R. 1591—70

‘‘(B) $6.55 an hour, beginning 12 months after that 

60th day; and ‘‘(C) $7.25 an hour, beginning 24 months after that 

60th day;’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect 60 days after the date of enactment of this Act. 

SEC. 7002. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 

AND THE COMMONWEALTH OF THE NORTHERN MARIANA 

ISLANDS. 

(a) IN GENERAL.—Section 6 of the Fair Labor Standards Act 

of 1938 (29 U.S.C. 206) shall apply to American Samoa and the 

Commonwealth of the Northern Mariana Islands. 

(b) TRANSITION.—Notwithstanding subsection (a)—

(1) the minimum wage applicable to the Commonwealth 

of the Northern Mariana Islands under section 6(a)(1) of the 

Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 

be—

(A) $3.55 an hour, beginning on the 60th day after 

the date of enactment of this Act; and (B) increased by $0.50 an hour (or such lesser amount 

as may be necessary to equal the minimum wage under 

section 6(a)(1) of such Act), beginning 1 year after the 

date of enactment of this Act and each year thereafter 

until the minimum wage applicable to the Commonwealth 

of the Northern Mariana Islands under this paragraph 

is equal to the minimum wage set forth in such section; 

and 

(2) the minimum wage applicable to American Samoa under 

section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 

U.S.C. 206(a)(1)) shall be—

(A) the applicable wage rate in effect for each industry 

and classification under section 697 of title 29, Code of 

Federal Regulations, on the date of enactment of this Act; (B) increased by $0.50 an hour, beginning on the 60th 

day after the date of enactment of this Act; and (C) increased by $0.50 an hour (or such lesser amount 

as may be necessary to equal the minimum wage under 

section 6(a)(1) of such Act), beginning 1 year after the 

date of enactment of this Act and each year thereafter 

until the minimum wage applicable to American Samoa 

under this paragraph is equal to the minimum wage set 

forth in such section. 

(c) CONFORMING AMENDMENTS.— (1) IN GENERAL.—The Fair Labor Standards Act of 1938 

is amended—

(A) by striking sections 5 and 8; and 

(B) in section 6(a), by striking paragraph (3) and 

redesignating paragraphs (4) and (5) as paragraphs (3) 

and (4), respectively. 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall take effect 60 days after the date of enactment 

of this Act. 

SEC. 7003. STUDY ON PROJECTED IMPACT. 

(a) STUDY.—Beginning on the date that is 26 months after 

the date of enactment of this Act, the Secretary of Labor shall, 

through the Bureau of Labor Statistics, conduct a study to—
H. R. 1591—71

(1) assess the assess the impact of the wage increases 

required by this Act through such date; and 

(2) to project the impact of any further wage increase, 

on living standards and rates of employment in American Samoa 

and the Commonwealth of the Northern Mariana Islands. 

(b) REPORT.—Not later than the date that is 32 months after 

the date of enactment of this Act, the Secretary of Labor shall 

transmit to Congress a report on the findings of the study required 

by subsection (a). 

Subtitle B—Small Business Incentives 

SEC. 7004. SHORT TITLE. 

This subtitle may be cited as the ‘‘Small Business and Work 

Opportunity Act of 2007’’. 

SEC. 7005. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 

BUSINESSES. 

(a) IN GENERAL.—Section 212 of the Small Business Regulatory 

Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended 

by striking subsection (a) and inserting the following: 

‘‘(a) COMPLIANCE GUIDE.—

‘‘(1) IN GENERAL.—For each rule or group of related rules 

for which an agency is required to prepare a final regulatory 

flexibility analysis under section 605(b) of title 5, United States 

Code, the agency shall publish 1 or more guides to assist 

small entities in complying with the rule and shall entitle 

such publications ‘small entity compliance guides’. 

‘‘(2) PUBLICATION OF GUIDES.—The publication of each guide 

under this subsection shall include—

‘‘(A) the posting of the guide in an easily identified 

location on the website of the agency; and 

‘‘(B) distribution of the guide to known industry contacts, such as small entities, associations, or industry 

leaders affected by the rule. 

‘‘(3) PUBLICATION DATE.—An agency shall publish each 

guide (including the posting and distribution of the guide as 

described under paragraph (2))—

‘‘(A) on the same date as the date of publication of 

the final rule (or as soon as possible after that date); 

and 

‘‘(B) not later than the date on which the requirements 

of that rule become effective. 

‘‘(4) COMPLIANCE ACTIONS.—

‘‘(A) IN GENERAL.—Each guide shall explain the actions 

a small entity is required to take to comply with a rule. 

‘‘(B) EXPLANATION.—The explanation under subparagraph (A)—

‘‘(i) shall include a description of actions needed 

to meet the requirements of a rule, to enable a small 

entity to know when such requirements are met; and 

‘‘(ii) if determined appropriate by the agency, may 

include a description of possible procedures, such as 

conducting tests, that may assist a small entity in 

meeting such requirements, except that, compliance 

with any procedures described pursuant to this section 
H. R. 1591—72

does not establish compliance with the rule, or establish a presumption or inference of such compliance. 

‘‘(C) PROCEDURES.—Procedures described under 

subparagraph (B)(ii)—

‘‘(i) shall be suggestions to assist small entities; 

and 

‘‘(ii) shall not be additional requirements, or 

diminish requirements, relating to the rule. 

‘‘(5) AGENCY PREPARATION OF GUIDES.—The agency shall, 

in its sole discretion, taking into account the subject matter 

of the rule and the language of relevant statutes, ensure that 

the guide is written using sufficiently plain language likely 

to be understood by affected small entities. Agencies may prepare separate guides covering groups or classes of similarly 

affected small entities and may cooperate with associations 

of small entities to develop and distribute such guides. An 

agency may prepare guides and apply this section with respect 

to a rule or a group of related rules. 

‘‘(6) REPORTING.—Not later than 1 year after the date of 

enactment of the Fair Minimum Wage Act of 2007, and 

annually thereafter, the head of each agency shall submit a 

report to the Committee on Small Business and Entrepreneurship of the Senate, the Committee on Small Business of the 

House of Representatives, and any other committee of relevant 

jurisdiction describing the status of the agency’s compliance 

with paragraphs (1) through (5).’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 211(3) 

of the Small Business Regulatory Enforcement Fairness Act of 

1996 (5 U.S.C. 601 note) is amended by inserting ‘‘and entitled’’ 

after ‘‘designated’’. 

SEC. 7006. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

(a) ESTABLISHMENT.—The Secretary of Health and Human 

Services (referred to in this section as the ‘‘Secretary’’) shall establish a program to award grants to States, on a competitive basis, 

to assist States in providing funds to encourage the establishment 

and operation of employer-operated child care programs. 

(b) APPLICATION.—To be eligible to receive a grant under this 

section, a State shall prepare and submit to the Secretary an 

application at such time, in such manner, and containing such 

information as the Secretary may require, including an assurance 

that the funds required under subsection (e) will be provided. 

(c) AMOUNT AND PERIOD OF GRANT.—The Secretary shall determine the amount of a grant to a State under this section based 

on the population of the State as compared to the population of 

all States receiving grants under this section. The Secretary shall 

make the grant for a period of 3 years. 

(d) USE OF FUNDS.—

(1) IN GENERAL.—A State shall use amounts provided under 

a grant awarded under this section to provide assistance to 

small businesses (or consortia formed in accordance with paragraph (3)) located in the State to enable the small businesses 

(or consortia) to establish and operate child care programs. 

Such assistance may include—

(A) technical assistance in the establishment of a child 

care program; 
H. R. 1591—73

(B) assistance for the startup costs related to a child 

care program; 

(C) assistance for the training of child care providers; 

(D) scholarships for low-income wage earners; 

(E) the provision of services to care for sick children 

or to provide care to school-aged children; 

(F) the entering into of contracts with local resource 

and referral organizations or local health departments; 

(G) assistance for care for children with disabilities; 

(H) payment of expenses for renovation or operation 

of a child care facility; or 

(I) assistance for any other activity determined appropriate by the State. 

(2) APPLICATION.—In order for a small business or consortium to be eligible to receive assistance from a State under 

this section, the small business involved shall prepare and 

submit to the State an application at such time, in such manner, 

and containing such information as the State may require. 

(3) PREFERENCE.—

(A) IN GENERAL.—In providing assistance under this 

section, a State shall give priority to an applicant that 

desires to form a consortium to provide child care in a 

geographic area within the State where such care is not 

generally available or accessible. 

(B) CONSORTIUM.—For purposes of subparagraph (A), 

a consortium shall be made up of 2 or more entities that 

shall include small businesses and that may include large 

businesses, nonprofit agencies or organizations, local 

governments, or other appropriate entities. 

(4) LIMITATIONS.—With respect to grant funds received 

under this section, a State may not provide in excess of 

$500,000 in assistance from such funds to any single applicant. 

(e) MATCHING REQUIREMENT.—To be eligible to receive a grant 

under this section, a State shall provide assurances to the Secretary 

that, with respect to the costs to be incurred by a covered entity 

receiving assistance in carrying out activities under this section, 

the covered entity will make available (directly or through donations 

from public or private entities) non-Federal contributions to such 

costs in an amount equal to—

(1) for the first fiscal year in which the covered entity 

receives such assistance, not less than 50 percent of such costs 

($1 for each $1 of assistance provided to the covered entity 

under the grant); 

(2) for the second fiscal year in which the covered entity 

receives such assistance, not less than 662⁄3 percent of such 

costs ($2 for each $1 of assistance provided to the covered 

entity under the grant); and 

(3) for the third fiscal year in which the covered entity 

receives such assistance, not less than 75 percent of such costs 

($3 for each $1 of assistance provided to the covered entity 

under the grant). 

(f) REQUIREMENTS OF PROVIDERS.—To be eligible to receive 

assistance under a grant awarded under this section, a child care 

provider—
H. R. 1591—74

(1) who receives assistance from a State shall comply with 

all applicable State and local licensing and regulatory requirements and all applicable health and safety standards in effect 

in the State; and 

(2) who receives assistance from an Indian tribe or tribal 

organization shall comply with all applicable regulatory standards. 

(g) STATE-LEVEL ACTIVITIES.—A State may not retain more 

than 3 percent of the amount described in subsection (c) for State 

administration and other State-level activities. 

(h) ADMINISTRATION.—

(1) STATE RESPONSIBILITY.—A State shall have responsibility for administering a grant awarded for the State under 

this section and for monitoring covered entities that receive 

assistance under such grant. 

(2) AUDITS.—A State shall require each covered entity 

receiving assistance under the grant awarded under this section 

to conduct an annual audit with respect to the activities of 

the covered entity. Such audits shall be submitted to the State. 

(3) MISUSE OF FUNDS.—

(A) REPAYMENT.—If the State determines, through an 

audit or otherwise, that a covered entity receiving assistance under a grant awarded under this section has misused 

the assistance, the State shall notify the Secretary of the 

misuse. The Secretary, upon such a notification, may seek 

from such a covered entity the repayment of an amount 

equal to the amount of any such misused assistance plus 

interest. 

(B) APPEALS PROCESS.—The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph. 

(i) REPORTING REQUIREMENTS.—

(1) 2-YEAR STUDY.—

(A) IN GENERAL.—Not later than 2 years after the 

date on which the Secretary first awards grants under 

this section, the Secretary shall conduct a study to determine—

(i) the capacity of covered entities to meet the 

child care needs of communities within States; 

(ii) the kinds of consortia that are being formed 

with respect to child care at the local level to carry 

out programs funded under this section; and 

(iii) who is using the programs funded under this 

section and the income levels of such individuals. 

(B) REPORT.—Not later than 28 months after the date 

on which the Secretary first awards grants under this 

section, the Secretary shall prepare and submit to the 

appropriate committees of Congress a report on the results 

of the study conducted in accordance with subparagraph 

(A). 

(2) 4-YEAR STUDY.—

(A) IN GENERAL.—Not later than 4 years after the 

date on which the Secretary first awards grants under 

this section, the Secretary shall conduct a study to determine the number of child care facilities that are funded 

through covered entities that received assistance through 

a grant awarded under this section and that remain in 
H. R. 1591—75

operation, and the extent to which such facilities are 

meeting the child care needs of the individuals served 

by such facilities. 

(B) REPORT.—Not later than 52 months after the date 

on which the Secretary first awards grants under this 

section, the Secretary shall prepare and submit to the 

appropriate committees of Congress a report on the results 

of the study conducted in accordance with subparagraph 

(A). 

(j) DEFINITIONS.—In this section: 

(1) COVERED ENTITY.—The term ‘‘covered entity’’ means 

a small business or a consortium formed in accordance with 

subsection (d)(3). 

(2) INDIAN COMMUNITY.—The term ‘‘Indian community’’ 

means a community served by an Indian tribe or tribal 

organization. 

(3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The terms 

‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings 

given the terms in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n). 

(4) SMALL BUSINESS.—The term ‘‘small business’’ means 

an employer who employed an average of at least 2 but not 

more than 50 employees on the business days during the preceding calendar year. 

(5) STATE.—The term ‘‘State’’ has the meaning given the 

term in section 658P of the Child Care and Development Block 

Grant Act of 1990 (42 U.S.C. 9858n). 

(k) APPLICATION TO INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—In this section: 

(1) IN GENERAL.—Except as provided in subsection (f)(1), 

and in paragraphs (2) and (3), the term ‘‘State’’ includes an 

Indian tribe or tribal organization. 

(2) GEOGRAPHIC REFERENCES.—The term ‘‘State’’ includes 

an Indian community in subsections (c) (the second and third 

place the term appears), (d)(1) (the second place the term 

appears), (d)(3)(A) (the second place the term appears), and 

(i)(1)(A)(i). 

(3) STATE-LEVEL ACTIVITIES.—The term ‘‘State-level activities’’ includes activities at the tribal level. 

(l) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated 

to carry out this section, $50,000,000 for the period of fiscal 

years 2008 through 2012. 

(2) STUDIES AND ADMINISTRATION.—With respect to the 

total amount appropriated for such period in accordance with 

this subsection, not more than $2,500,000 of that amount may 

be used for expenditures related to conducting studies required 

under, and the administration of, this section. 

(m) TERMINATION OF PROGRAM.—The program established 

under subsection (a) shall terminate on September 30, 2012. 

SEC. 7007. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF 

EARNED INCOME CREDIT. 

Not later than 180 days after the date of the enactment of 

this Act, the Secretary of the Treasury shall report to Congress 

on a study of the benefits, costs, risks, and barriers to workers 

and to businesses (with a special emphasis on small businesses) 
H. R. 1591—76

if the advance earned income tax credit program (under section 

3507 of the Internal Revenue Code of 1986) included all recipients 

of the earned income tax credit (under section 32 of such Code) 

and what steps would be necessary to implement such inclusion. 

SEC. 7008. RENEWAL GRANTS FOR WOMEN’S BUSINESS CENTERS. 

(a) IN GENERAL.—Section 29 of the Small Business Act (15 

U.S.C. 656) is amended by adding at the end the following: 

‘‘(m) CONTINUED FUNDING FOR CENTERS.—

‘‘(1) IN GENERAL.—A nonprofit organization described in 

paragraph (2) shall be eligible to receive, subject to paragraph 

(3), a 3-year grant under this subsection. 

‘‘(2) APPLICABILITY.—A nonprofit organization described in 

this paragraph is a nonprofit organization that has received 

funding under subsection (b) or (l). 

‘‘(3) APPLICATION AND APPROVAL CRITERIA.—

‘‘(A) CRITERIA.—Subject to subparagraph (B), the 

Administrator shall develop and publish criteria for the 

consideration and approval of applications by nonprofit 

organizations under this subsection. 

‘‘(B) CONTENTS.—Except as otherwise provided in this 

subsection, the conditions for participation in the grant 

program under this subsection shall be the same as the 

conditions for participation in the program under subsection (l), as in effect on the date of enactment of this 

Act. 

‘‘(C) NOTIFICATION.—Not later than 60 days after the 

date of the deadline to submit applications for each fiscal 

year, the Administrator shall approve or deny any application under this subsection and notify the applicant for 

each such application. 

‘‘(4) AWARD OF GRANTS.—

‘‘(A) IN GENERAL.—Subject to the availability of appropriations, the Administrator shall make a grant for the 

Federal share of the cost of activities described in the 

application to each applicant approved under this subsection. 

‘‘(B) AMOUNT.—A grant under this subsection shall 

be for not more than $150,000, for each year of that grant. 

‘‘(C) FEDERAL SHARE.—The Federal share under this 

subsection shall be not more than 50 percent. 

‘‘(D) PRIORITY.—In allocating funds made available for 

grants under this section, the Administrator shall give 

applications under this subsection or subsection (l) priority 

over first-time applications under subsection (b). 

‘‘(5) RENEWAL.—

‘‘(A) IN GENERAL.—The Administrator may renew a 

grant under this subsection for additional 3-year periods, 

if the nonprofit organization submits an application for 

such renewal at such time, in such manner, and accompanied by such information as the Administrator may 

establish. 

‘‘(B) UNLIMITED RENEWALS.—There shall be no limitation on the number of times a grant may be renewed 

under subparagraph (A). 

‘‘(n) PRIVACY REQUIREMENTS.—
H. R. 1591—77

‘‘(1) IN GENERAL.—A women’s business center may not disclose the name, address, or telephone number of any individual 

or small business concern receiving assistance under this section without the consent of such individual or small business 

concern, unless—

‘‘(A) the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action 

initiated by a Federal or State agency; or 

‘‘(B) the Administrator considers such a disclosure to 

be necessary for the purpose of conducting a financial audit 

of a women’s business center, but a disclosure under this 

subparagraph shall be limited to the information necessary 

for such audit. 

‘‘(2) ADMINISTRATION USE OF INFORMATION.—This subsection shall not—

‘‘(A) restrict Administration access to program activity 

data; or 

‘‘(B) prevent the Administration from using client 

information (other than the information described in 

subparagraph (A)) to conduct client surveys. 

‘‘(3) REGULATIONS.—The Administrator shall issue regulations to establish standards for requiring disclosures during 

a financial audit under paragraph (1)(B).’’. 

(b) REPEAL.—Section 29(l) of the Small Business Act (15 U.S.C. 

656(l)) is repealed effective October 1 of the first full fiscal year 

after the date of enactment of this Act. 

(c) TRANSITIONAL RULE.—Notwithstanding any other provision 

of law, a grant or cooperative agreement that was awarded under 

subsection (l) of section 29 of the Small Business Act (15 U.S.C. 

656), on or before the day before the date described in subsection 

(b) of this section, shall remain in full force and effect under 

the terms, and for the duration, of such grant or agreement. 

SEC. 7009. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND 

SUPPLIES MANUFACTURED OUTSIDE THE UNITED 

STATES. 

Section 2 of the Buy American Act (41 U.S.C. 10a) is amended—

(1) by striking ‘‘Notwithstanding’’ and inserting the following: 

‘‘(a) IN GENERAL.—Notwithstanding’’; and 

(2) by adding at the end the following: 

‘‘(b) REPORTS.—

‘‘(1) IN GENERAL.—Not later than 180 days after the end 

of each of fiscal years 2007 through 2011, the head of each 

Federal agency shall submit to the Committee on Homeland 

Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House 

of Representatives a report on the amount of the acquisitions 

made by the agency in that fiscal year of articles, materials, 

or supplies purchased from entities that manufacture the articles, materials, or supplies outside of the United States. 

‘‘(2) CONTENTS OF REPORT.—The report required by paragraph (1) shall separately include, for the fiscal year covered 

by such report—

‘‘(A) the dollar value of any articles, materials, or supplies that were manufactured outside the United States; 
H. R. 1591—78

‘‘(B) an itemized list of all waivers granted with respect 

to such articles, materials, or supplies under this Act, 

and a citation to the treaty, international agreement, or 

other law under which each waiver was granted; 

‘‘(C) if any articles, materials, or supplies were acquired 

from entities that manufacture articles, materials, or supplies outside the United States, the specific exception under 

this section that was used to purchase such articles, materials, or supplies; and 

‘‘(D) a summary of—

‘‘(i) the total procurement funds expended on articles, materials, and supplies manufactured inside the 

United States; and 

‘‘(ii) the total procurement funds expended on articles, materials, and supplies manufactured outside the 

United States. 

‘‘(3) PUBLIC AVAILABILITY.—The head of each Federal 

agency submitting a report under paragraph (1) shall make 

the report publicly available to the maximum extent practicable. 

‘‘(4) EXCEPTION FOR INTELLIGENCE COMMUNITY.—This subsection shall not apply to acquisitions made by an agency, 

or component thereof, that is an element of the intelligence 

community as specified in, or designated under, section 3(4) 

of the National Security Act of 1947 (50 U.S.C. 401a(4)).’’. 

Subtitle C—Small Business Tax Incentives 

SEC. 7510. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Small 

Business and Work Opportunity Tax Act of 2007’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this subtitle an amendment or repeal is 

expressed in terms of an amendment to, or repeal of, a section 

or other provision, the reference shall be considered to be made 

to a section or other provision of the Internal Revenue Code of 

1986. 

(c) TABLE OF CONTENTS.—The table of contents of this subtitle 

is as follows:

Subtitle C—Small Business Tax Incentives 

Sec. 7510. Short title; amendment of Code; table of contents. 

PART I—SMALL BUSINESS TAX RELIEF PROVISIONS

SUBPART A—GENERAL PROVISIONS

Sec. 7511. Extension and modification of work opportunity tax credit. 

Sec. 7512. Extension and increase of expensing for small business. 

Sec. 7513. Determination of credit for certain taxes paid with respect to employee 

cash tips. 

Sec. 7514. Waiver of individual and corporate alternative minimum tax limits on 

work opportunity credit and credit for taxes paid with respect to employee cash tips. 

Sec. 7515. Family business tax simplification. 

SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES

Sec. 7521. Extension of increased expensing for qualified section 179 Gulf Opportunity Zone property. 

Sec. 7522. Extension and expansion of low-income housing credit rules for buildings 

in the GO Zones. 

Sec. 7523. Special tax-exempt bond financing rule for repairs and reconstructions 

of residences in the GO Zones. 
H. R. 1591—79

Sec. 7524. GAO study of practices employed by State and local governments in allocating and utilizing tax incentives provided pursuant to the Gulf Opportunity Zone Act of 2005. 

SUBPART C—SUBCHAPTER S PROVISIONS

Sec. 7531. Capital gain of S corporation not treated as passive investment income. 

Sec. 7532. Treatment of bank director shares. 

Sec. 7533. Special rule for bank required to change from the reserve method of accounting on becoming S corporation. Sec. 7534. Treatment of the sale of interest in a qualified subchapter S subsidiary. 

Sec. 7535. Elimination of all earnings and profits attributable to pre-1983 years for 

certain corporations. Sec. 7536. Deductibility of interest expense on indebtedness incurred by an electing 

small business trust to acquire S corporation stock. 

PART II—REVENUE PROVISIONS

Sec. 7541. Increase in age of minor children whose unearned income is taxed as if 

parent’s income. Sec. 7542. Suspension of certain penalties and interest. 

Sec. 7543. Modification of collection due process procedures for employment tax liabilities. 

Sec. 7544. Permanent extension of IRS user fees. 

Sec. 7545. Increase in penalty for bad checks and money orders. 

Sec. 7546. Understatement of taxpayer liability by return preparers. 

Sec. 7547. Penalty for filing erroneous refund claims. 

Sec. 7548. Time for payment of corporate estimated taxes.

PART I—SMALL BUSINESS TAX RELIEF 

PROVISIONS 

Subpart A—General Provisions 

SEC. 7511. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY 

TAX CREDIT. 

(a) EXTENSION.—Section 51(c)(4)(B) (relating to termination) 

is amended by striking ‘‘December 31, 2007’’ and inserting ‘‘August 

31, 2011’’. 

(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED COMMUNITY

RESIDENTS.— (1) IN GENERAL.—Paragraph (5) of section 51(d) is amended 

to read as follows: 

‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—

‘‘(A) IN GENERAL.—The term ‘designated community 

resident’ means any individual who is certified by the designated local agency—

‘‘(i) as having attained age 18 but not age 40 

on the hiring date, and 

‘‘(ii) as having his principal place of abode within 

an empowerment zone, enterprise community, renewal 

community, or rural renewal county. 

‘‘(B) INDIVIDUAL MUST CONTINUE TO RESIDE IN ZONE, COMMUNITY, OR COUNTY.—In the case of a designated 

community resident, the term ‘qualified wages’ shall not 

include wages paid or incurred for services performed while 

the individual’s principal place of abode is outside an 

empowerment zone, enterprise community, renewal 

community, or rural renewal county. 

‘‘(C) RURAL RENEWAL COUNTY.—For purposes of this 

paragraph, the term ‘rural renewal county’ means any 

county which—

‘‘(i) is outside a metropolitan statistical area 

(defined as such by the Office of Management and 

Budget), and 
H. R. 1591—80

‘‘(ii) during the 5-year periods 1990 through 1994 

and 1995 through 1999 had a net population loss.’’. 

(2) CONFORMING AMENDMENT.—Subparagraph (D) of section 51(d)(1) is amended to read as follows: 

‘‘(D) a designated community resident,’’. 

(c) CLARIFICATION OF TREATMENT OF INDIVIDUALS UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) of section 51(d)(6) 

(relating to vocational rehabilitation referral) is amended by striking 

‘‘or’’ at the end of clause (i), by striking the period at the end 

of clause (ii) and inserting ‘‘, or’’, and by adding at the end the 

following new clause: 

‘‘(iii) an individual work plan developed and implemented by an employment network pursuant to subsection (g) of section 1148 of the Social Security Act 

with respect to which the requirements of such subsection are met.’’. 

(d) TREATMENT OF DISABLED VETERANS UNDER THE WORK

OPPORTUNITY TAX CREDIT.—

(1) DISABLED VETERANS TREATED AS MEMBERS OF TARGETED

GROUP.—

(A) IN GENERAL.—Subparagraph (A) of section 51(d)(3) 

(relating to qualified veteran) is amended by striking 

‘‘agency as being a member of a family’’ and all that follows 

and inserting ‘‘agency as—

‘‘(i) being a member of a family receiving assistance 

under a food stamp program under the Food Stamp 

Act of 1977 for at least a 3-month period ending during 

the 12-month period ending on the hiring date, or 

‘‘(ii) entitled to compensation for a service-connected disability, and—

‘‘(I) having a hiring date which is not more 

that 1 year after having been discharged or 

released from active duty in the Armed Forces 

of the United States, or 

‘‘(II) having aggregate periods of unemployment during the 1-year period ending on the hiring 

date which equal or exceed 6 months.’’. 

(B) DEFINITIONS.—Paragraph (3) of section 51(d) is 

amended by adding at the end the following new subparagraph: 

‘‘(C) OTHER DEFINITIONS.—For purposes of subparagraph (A), the terms ‘compensation’ and ‘service-connected’ 

have the meanings given such terms under section 101 

of title 38, United States Code.’’. 

(2) INCREASE IN AMOUNT OF WAGES TAKEN INTO ACCOUNT

FOR DISABLED VETERANS.—Paragraph (3) of section 51(b) is 

amended—

(A) by inserting ‘‘($12,000 per year in the case of any 

individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii))’’ before the period at the end, and 

(B) by striking ‘‘ONLY FIRST $6,000 OF’’ in the heading 

and inserting ‘‘LIMITATION ON’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to individuals who begin work for the employer after 

the date of the enactment of this Act. 
H. R. 1591—81

SEC. 7512. EXTENSION AND INCREASE OF EXPENSING FOR SMALL 

BUSINESS. 

(a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), (c)(2), and 

(d)(1)(A)(ii) of section 179 (relating to election to expense certain 

depreciable business assets) are each amended by striking ‘‘2010’’ 

and inserting ‘‘2011’’. 

(b) INCREASE IN LIMITATIONS.—Subsection (b) of section 179 

is amended—

(1) by striking ‘‘$100,000 in the case of taxable years begin- ning after 2002’’ in paragraph (1) and inserting ‘‘$125,000 in 

the case of taxable years beginning after 2006’’, and (2) by striking ‘‘$400,000 in the case of taxable years begin- ning after 2002’’ in paragraph (2) and inserting ‘‘$500,000 in 

the case of taxable years beginning after 2006’’. 

(c) INFLATION ADJUSTMENT.—Subparagraph (A) of section 

179(b)(5) is amended—

(1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 

(2) by striking ‘‘$100,000 and $400,000’’ and inserting ‘‘$125,000 and $500,000’’, and 

(3) by striking ‘‘2002’’ in clause (ii) and inserting ‘‘2006’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

SEC. 7513. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID 

WITH RESPECT TO EMPLOYEE CASH TIPS. 

(a) IN GENERAL.—Subparagraph (B) of section 45B(b)(1) is 

amended by inserting ‘‘as in effect on January 1, 2007, and’’ before 

‘‘determined without regard to’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to tips received for services performed after December 

31, 2006. 

SEC. 7514. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE 

MINIMUM TAX LIMITS ON WORK OPPORTUNITY CREDIT 

AND CREDIT FOR TAXES PAID WITH RESPECT TO 

EMPLOYEE CASH TIPS. 

(a) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.— Subparagraph (B) of section 38(c)(4) is amended by striking ‘‘and’’ 

at the end of clause (i), by inserting a comma at the end of clause 

(ii), and by adding at the end the following new clauses: 

‘‘(iii) the credit determined under section 45B, and 

‘‘(iv) the credit determined under section 51.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to credits determined under sections 45B and 51 of 

the Internal Revenue Code of 1986 in taxable years beginning 

after December 31, 2006, and to carrybacks of such credits. 

SEC. 7515. FAMILY BUSINESS TAX SIMPLIFICATION. 

(a) IN GENERAL.—Section 761 (defining terms for purposes of 

partnerships) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new 

subsection: 

‘‘(f) QUALIFIED JOINT VENTURE.—

‘‘(1) IN GENERAL.—In the case of a qualified joint venture 

conducted by a husband and wife who file a joint return for 

the taxable year, for purposes of this title—

‘‘(A) such joint venture shall not be treated as a partnership, 
H. R. 1591—82

‘‘(B) all items of income, gain, loss, deduction, and 

credit shall be divided between the spouses in accordance 

with their respective interests in the venture, and 

‘‘(C) each spouse shall take into account such spouse’s 

respective share of such items as if they were attributable 

to a trade or business conducted by such spouse as a 

sole proprietor. 

‘‘(2) QUALIFIED JOINT VENTURE.—For purposes of paragraph 

(1), the term ‘qualified joint venture’ means any joint venture 

involving the conduct of a trade or business if—

‘‘(A) the only members of such joint venture are a 

husband and wife, 

‘‘(B) both spouses materially participate (within the 

meaning of section 469(h) without regard to paragraph 

(5) thereof) in such trade or business, and 

‘‘(C) both spouses elect the application of this subsection.’’. 

(b) NET EARNINGS FROM SELF-EMPLOYMENT.—

(1) Subsection (a) of section 1402 (defining net earnings 

from self-employment) is amended by striking ‘‘, and’’ at the 

end of paragraph (15) and inserting a semicolon, by striking 

the period at the end of paragraph (16) and inserting ‘‘; and’’, 

and by inserting after paragraph (16) the following new paragraph: 

‘‘(17) notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified 

joint venture shall be taken into account as provided in section 

761(f) in determining net earnings from self-employment of 

such spouse.’’. 

(2) Subsection (a) of section 211 of the Social Security 

Act (defining net earnings from self-employment) is amended 

by striking ‘‘and’’ at the end of paragraph (14), by striking 

the period at the end of paragraph (15) and inserting ‘‘; and’’, 

and by inserting after paragraph (15) the following new paragraph: 

‘‘(16) Notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified 

joint venture shall be taken into account as provided in section 

761(f) of the Internal Revenue Code of 1986 in determining 

net earnings from self-employment of such spouse.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

Subpart B—Gulf Opportunity Zone Tax Incentives 

SEC. 7521. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED 

SECTION 179 GULF OPPORTUNITY ZONE PROPERTY. 

Paragraph (2) of section 1400N(e) (relating to qualified section 

179 Gulf Opportunity Zone property) is amended—

(1) by striking ‘‘this subsection, the term’’ and inserting 

‘‘this subsection—

‘‘(A) IN GENERAL.—The term’’, and 

(2) by adding at the end the following new subparagraph: 

‘‘(B) EXTENSION FOR CERTAIN PROPERTY.—In the case 

of property substantially all of the use of which is in 

one or more specified portions of the GO Zone (as defined 

by subsection (d)(6)), such term shall include section 179 
H. R. 1591—83

property (as so defined) which is described in subsection 

(d)(2), determined—

‘‘(i) without regard to subsection (d)(6), and 

‘‘(ii) by substituting ‘2008’ for ‘2007’ in subparagraph (A)(v) thereof.’’. 

SEC. 7522. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING 

CREDIT RULES FOR BUILDINGS IN THE GO ZONES. 

(a) TIME FOR MAKING LOW-INCOME HOUSING CREDIT ALLOCA- TIONS.—Subsection (c) of section 1400N (relating to low-income 

housing credit) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new 

paragraph: 

‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING CREDIT

ALLOCATIONS.—Section 42(h)(1)(B) shall not apply to an allocation of housing credit dollar amount to a building located in 

the Gulf Opportunity Zone, the Rita GO Zone, or the Wilma 

GO Zone, if such allocation is made in 2006, 2007, or 2008, 

and such building is placed in service before January 1, 2011.’’. 

(b) EXTENSION OF PERIOD FOR TREATING GO ZONES AS DIF- FICULT DEVELOPMENT AREAS.— (1) IN GENERAL.—Subparagraph (A) of section 1400N(c)(3) 

is amended by striking ‘‘2006, 2007, or 2008’’ and inserting 

‘‘the period beginning on January 1, 2006, and ending on 

December 31, 2010’’. 

(2) CONFORMING AMENDMENT.—Clause (ii) of section 

1400N(c)(3)(B) is amended by striking ‘‘such period’’ and 

inserting ‘‘the period described in subparagraph (A)’’. 

(c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT TAKEN INTO

ACCOUNT IN DETERMINING IF BUILDINGS ARE FEDERALLY SUB- SIDIZED.—Subsection (c) of section 1400N (relating to low-income 

housing credit), as amended by this Act, is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: 

‘‘(6) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT TAKEN

INTO ACCOUNT IN DETERMINING IF BUILDINGS ARE FEDERALLY

SUBSIDIZED.—For purpose of applying section 42(i)(2)(D) to any 

building which is placed in service in the Gulf Opportunity 

Zone, the Rita GO Zone, or the Wilma GO Zone during the 

period beginning on January 1, 2006, and ending on December 

31, 2010, a loan shall not be treated as a below market Federal 

loan solely by reason of any assistance provided under section 

106, 107, or 108 of the Housing and Community Development 

Act of 1974 by reason of section 122 of such Act or any provision 

of the Department of Defense Appropriations Act, 2006, or 

the Emergency Supplemental Appropriations Act for Defense, 

the Global War on Terror, and Hurricane Recovery, 2006.’’. 

SEC. 7523. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS 

AND RECONSTRUCTIONS OF RESIDENCES IN THE GO 

ZONES. 

Subsection (a) of section 1400N (relating to tax-exempt bond 

financing) is amended by adding at the end the following new 

paragraph: 

‘‘(7) SPECIAL RULE FOR REPAIRS AND RECONSTRUCTIONS.—

‘‘(A) IN GENERAL.—For purposes of section 143 and 

this subsection, any qualified GO Zone repair or reconstruction shall be treated as a qualified rehabilitation. 
H. R. 1591—84

‘‘(B) QUALIFIED GO ZONE REPAIR OR RECONSTRUCTION.—

For purposes of subparagraph (A), the term ‘qualified GO 

Zone repair or reconstruction’ means any repair of damage 

caused by Hurricane Katrina, Hurricane Rita, or Hurricane 

Wilma to a building located in the Gulf Opportunity Zone, 

the Rita GO Zone, or the Wilma GO Zone (or reconstruction 

of such building in the case of damage constituting destruction) if the expenditures for such repair or reconstruction 

are 25 percent or more of the mortgagor’s adjusted basis 

in the residence. For purposes of the preceding sentence, 

the mortgagor’s adjusted basis shall be determined as of 

the completion of the repair or reconstruction or, if later, 

the date on which the mortgagor acquires the residence. 

‘‘(C) TERMINATION.—This paragraph shall apply only 

to owner-financing provided after the date of the enactment 

of this paragraph and before January 1, 2011.’’. 

SEC. 7524. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND 

LOCAL GOVERNMENTS IN ALLOCATING AND UTILIZING 

TAX INCENTIVES PROVIDED PURSUANT TO THE GULF 

OPPORTUNITY ZONE ACT OF 2005. 

(a) IN GENERAL.—The Comptroller General of the United States 

shall conduct a study of the practices employed by State and local 

governments, and subdivisions thereof, in allocating and utilizing 

tax incentives provided pursuant to the Gulf Opportunity Zone 

Act of 2005 and this Act. 

(b) SUBMISSION OF REPORT.—Not later than one year after 

the date of the enactment of this Act, the Comptroller General 

shall submit a report on the findings of the study conducted under 

subsection (a) and shall include therein recommendations (if any) 

relating to such findings. The report shall be submitted to the 

Committee on Ways and Means of the House of Representatives 

and the Committee on Finance of the Senate. 

(c) CONGRESSIONAL HEARINGS.—In the case that the report 

submitted under this section includes findings of significant fraud, 

waste or abuse, each Committee specified in subsection (b) shall, 

within 60 days after the date the report is submitted under subsection (b), hold a public hearing to review such findings. 

Subpart C—Subchapter S Provisions 

SEC. 7531. CAPITAL GAIN OF S CORPORATION NOT TREATED AS PASSIVE INVESTMENT INCOME. 

(a) IN GENERAL.—Section 1362(d)(3) is amended by striking 

subparagraphs (B), (C), (D), (E), and (F) and inserting the following 

new subparagraph: 

‘‘(B) PASSIVE INVESTMENT INCOME DEFINED.—

‘‘(i) IN GENERAL.—Except as otherwise provided 

in this subparagraph, the term ‘passive investment 

income’ means gross receipts derived from royalties, 

rents, dividends, interest, and annuities. 

‘‘(ii) EXCEPTION FOR INTEREST ON NOTES FROM

SALES OF INVENTORY.—The term ‘passive investment 

income’ shall not include interest on any obligation 

acquired in the ordinary course of the corporation’s 

trade or business from its sale of property described 

in section 1221(a)(1). 
H. R. 1591—85

‘‘(iii) TREATMENT OF CERTAIN LENDING OR FINANCE

COMPANIES.—If the S corporation meets the requirements of section 542(c)(6) for the taxable year, the 

term ‘passive investment income’ shall not include 

gross receipts for the taxable year which are derived 

directly from the active and regular conduct of a 

lending or finance business (as defined in section 

542(d)(1)). 

‘‘(iv) TREATMENT OF CERTAIN DIVIDENDS.—If an S 

corporation holds stock in a C corporation meeting 

the requirements of section 1504(a)(2), the term ‘passive investment income’ shall not include dividends 

from such C corporation to the extent such dividends 

are attributable to the earnings and profits of such 

C corporation derived from the active conduct of a 

trade or business. 

‘‘(v) EXCEPTION FOR BANKS, ETC.—In the case of 

a bank (as defined in section 581) or a depository 

institution holding company (as defined in section 

3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 

1813(w)(1)), the term ‘passive investment income’ shall 

not include—

‘‘(I) interest income earned by such bank or 

company, or 

‘‘(II) dividends on assets required to be held 

by such bank or company, including stock in the 

Federal Reserve Bank, the Federal Home Loan 

Bank, or the Federal Agricultural Mortgage Bank 

or participation certificates issued by a Federal 

Intermediate Credit Bank.’’. 

(b) CONFORMING AMENDMENT.—Clause (i) of section 

1042(c)(4)(A) is amended by striking ‘‘section 1362(d)(3)(C)’’ and 

inserting ‘‘section 1362(d)(3)(B)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 7532. TREATMENT OF BANK DIRECTOR SHARES. 

(a) IN GENERAL.—Section 1361 (defining S corporation) is 

amended by adding at the end the following new subsection: 

‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—

‘‘(1) IN GENERAL.—Restricted bank director stock shall not 

be taken into account as outstanding stock of the S corporation 

in applying this subchapter (other than section 1368(f)). 

‘‘(2) RESTRICTED BANK DIRECTOR STOCK.—For purposes of 

this subsection, the term ‘restricted bank director stock’ means 

stock in a bank (as defined in section 581) or a depository 

institution holding company (as defined in section 3(w)(1) of 

the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), if 

such stock—

‘‘(A) is required to be held by an individual under 

applicable Federal or State law in order to permit such 

individual to serve as a director, and 

‘‘(B) is subject to an agreement with such bank or 

company (or a corporation which controls (within the 

meaning of section 368(c)) such bank or company) pursuant 

to which the holder is required to sell back such stock 
H. R. 1591—86

(at the same price as the individual acquired such stock) 

upon ceasing to hold the office of director. 

‘‘(3) CROSS REFERENCE.—

‘‘For treatment of certain distributions with respect to restricted bank director stock, 

see section 1368(f)’’.

(b) DISTRIBUTIONS.—Section 1368 (relating to distributions) is 

amended by adding at the end the following new subsection: 

‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—If a director receives 

a distribution (not in part or full payment in exchange for stock) 

from an S corporation with respect to any restricted bank director 

stock (as defined in section 1361(f)), the amount of such distribution—

‘‘(1) shall be includible in gross income of the director, 

and 

‘‘(2) shall be deductible by the corporation for the taxable 

year of such corporation in which or with which ends the 

taxable year in which such amount in included in the gross 

income of the director.’’. 

(c) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

(2) SPECIAL RULE FOR TREATMENT AS SECOND CLASS OF

STOCK.—In the case of any taxable year beginning after 

December 31, 1996, restricted bank director stock (as defined 

in section 1361(f) of the Internal Revenue Code of 1986, as 

added by this section) shall not be taken into account in determining whether an S corporation has more than 1 class of 

stock. 

SEC. 7533. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM 

THE RESERVE METHOD OF ACCOUNTING ON BECOMING 

S CORPORATION. 

(a) IN GENERAL.—Section 1361, as amended by this Act, is 

amended by adding at the end the following new subsection: 

‘‘(g) SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM

THE RESERVE METHOD OF ACCOUNTING ON BECOMING S CORPORATION.—In the case of a bank which changes from the reserve method 

of accounting for bad debts described in section 585 or 593 for 

its first taxable year for which an election under section 1362(a) 

is in effect, the bank may elect to take into account any adjustments 

under section 481 by reason of such change for the taxable year 

immediately preceding such first taxable year.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

SEC. 7534. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED 

SUBCHAPTER S SUBSIDIARY. 

(a) IN GENERAL.—Subparagraph (C) of section 1361(b)(3) 

(relating to treatment of terminations of qualified subchapter S 

subsidiary status) is amended—

(1) by striking ‘‘For purposes of this title,’’ and inserting 

the following: 

‘‘(i) IN GENERAL.—For purposes of this title,’’, and 

(2) by inserting at the end the following new clause: 

‘‘(ii) TERMINATION BY REASON OF SALE OF STOCK.—

If the failure to meet the requirements of subparagraph 

(B) is by reason of the sale of stock of a corporation 
H. R. 1591—87

which is a qualified subchapter S subsidiary, the sale 

of such stock shall be treated as if—

‘‘(I) the sale were a sale of an undivided 

interest in the assets of such corporation (based 

on the percentage of the corporation’s stock sold), 

and 

‘‘(II) the sale were followed by an acquisition 

by such corporation of all of its assets (and the 

assumption by such corporation of all of its liabilities) in a transaction to which section 351 

applies.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

SEC. 7535. ELIMINATION OF ALL EARNINGS AND PROFITS ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN CORPORATIONS. 

In the case of a corporation which is—

(1) described in section 1311(a)(1) of the Small Business 

Job Protection Act of 1996, and 

(2) not described in section 1311(a)(2) of such Act, 

the amount of such corporation’s accumulated earnings and profits 

(for the first taxable year beginning after the date of the enactment 

of this Act) shall be reduced by an amount equal to the portion 

(if any) of such accumulated earnings and profits which were 

accumulated in any taxable year beginning before January 1, 1983, 

for which such corporation was an electing small business corporation under subchapter S of the Internal Revenue Code of 1986. 

SEC. 7536. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS 

INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO 

ACQUIRE S CORPORATION STOCK. 

(a) IN GENERAL.—Subparagraph (C) of section 641(c)(2) 

(relating to modifications) is amended by inserting after clause 

(iii) the following new clause: 

‘‘(iv) Any interest expense paid or accrued on 

indebtedness incurred to acquire stock in an S corporation.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after December 31, 2006. 

PART II—REVENUE PROVISIONS 

SEC. 7541. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED 

INCOME IS TAXED AS IF PARENT’S INCOME. 

(a) IN GENERAL.—Subparagraph (A) of section 1(g)(2) (relating 

to child to whom subsection applies) is amended to read as follows: 

‘‘(A) such child—

‘‘(i) has not attained age 18 before the close of 

the taxable year, or 

‘‘(ii)(I) has attained age 18 before the close of the 

taxable year and meets the age requirements of section 

152(c)(3) (determined without regard to subparagraph 

(B) thereof), and 

‘‘(II) whose earned income (as defined in section 

911(d)(2)) for such taxable year does not exceed onehalf of the amount of the individual’s support (within 
H. R. 1591—88

the meaning of section 152(c)(1)(D) after the application of section 152(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year,’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 7542. SUSPENSION OF CERTAIN PENALTIES AND INTEREST. 

(a) IN GENERAL.—Paragraphs (1)(A) and (3)(A) of section 

6404(g) are each amended by striking ‘‘18-month period’’ and 

inserting ‘‘36-month period’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to notices provided by the Secretary of the Treasury, 

or his delegate, after the date which is 6 months after the date 

of the enactment of this Act. 

SEC. 7543. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR EMPLOYMENT TAX LIABILITIES. 

(a) IN GENERAL.—Section 6330(f) (relating to jeopardy and State 

refund collection) is amended—

(1) by striking ‘‘; or’’ at the end of paragraph (1) and 

inserting a comma, 

(2) by adding ‘‘or’’ at the end of paragraph (2), and 

(3) by inserting after paragraph (2) the following new paragraph: 

‘‘(3) the Secretary has served a disqualified employment 

tax levy,’’. 

(b) DISQUALIFIED EMPLOYMENT TAX LEVY.—Section 6330 of 

such Code (relating to notice and opportunity for hearing before 

levy) is amended by adding at the end the following new subsection: 

‘‘(h) DISQUALIFIED EMPLOYMENT TAX LEVY.—For purposes of 

subsection (f), a disqualified employment tax levy is any levy in 

connection with the collection of employment taxes for any taxable 

period if the person subject to the levy (or any predecessor thereof) 

requested a hearing under this section with respect to unpaid 

employment taxes arising in the most recent 2-year period before 

the beginning of the taxable period with respect to which the 

levy is served. For purposes of the preceding sentence, the term 

‘employment taxes’ means any taxes under chapter 21, 22, 23, 

or 24.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to levies served on or after the date that is 120 days 

after the date of the enactment of this Act. 

SEC. 7544. PERMANENT EXTENSION OF IRS USER FEES. 

Section 7528 (relating to Internal Revenue Service user fees) 

is amended by striking subsection (c). 

SEC. 7545. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY 

ORDERS. 

(a) IN GENERAL.—Section 6657 (relating to bad checks) is 

amended—

(1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, and 

(2) by striking ‘‘$15’’ and inserting ‘‘$25’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

apply to checks or money orders received after the date of the 

enactment of this Act. 
H. R. 1591—89

SEC. 7546. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN 

PREPARERS. 

(a) APPLICATION OF RETURN PREPARER PENALTIES TO ALL TAX

RETURNS.—

(1) DEFINITION OF TAX RETURN PREPARER.—Paragraph (36) 

of section 7701(a) (relating to income tax preparer) is 

amended—

(A) by striking ‘‘income’’ each place it appears in the 

heading and the text, and 

(B) in subparagraph (A), by striking ‘‘subtitle A’’ each 

place it appears and inserting ‘‘this title’’. 

(2) CONFORMING AMENDMENTS.— (A)(i) Section 6060 is amended by striking ‘‘INCOME

TAX RETURN PREPARERS’’ in the heading and inserting ‘‘TAX RETURN PREPARERS’’. 

(ii) Section 6060(a) is amended—

(I) by striking ‘‘an income tax return preparer’’ 

each place it appears and inserting ‘‘a tax return preparer’’, 

(II) by striking ‘‘each income tax return preparer’’ 

and inserting ‘‘each tax return preparer’’, and 

(III) by striking ‘‘another income tax return preparer’’ and inserting ‘‘another tax return preparer’’. 

(iii) The item relating to section 6060 in the table 

of sections for subpart F of part III of subchapter A of 

chapter 61 is amended by striking ‘‘income tax return preparers’’ and inserting ‘‘tax return preparers’’. 

(iv) Subpart F of part III of subchapter A of chapter 

61 is amended by striking ‘‘Income Tax Return Preparers’’ in the heading and inserting ‘‘Tax Return Preparers’’. 

(v) The item relating to subpart F in the table of 

subparts for part III of subchapter A of chapter 61 is 

amended by striking ‘‘income tax return preparers’’ and 

inserting ‘‘tax return preparers’’. 

(B) Section 6103(k)(5) is amended—

(i) by striking ‘‘income tax return preparer’’ each 

place it appears and inserting ‘‘tax return preparer’’, 

and 

(ii) by striking ‘‘income tax return preparers’’ each 

place it appears and inserting ‘‘tax return preparers’’. 

(C)(i) Section 6107 is amended—

(I) by striking ‘‘INCOME TAX RETURN PREPARER’’ 

in the heading and inserting ‘‘TAX RETURN PREPARER’’, 

(II) by striking ‘‘an income tax return preparer’’ 

each place it appears in subsections (a) and (b) and 

inserting ‘‘a tax return preparer’’, 

(III) by striking ‘‘INCOME TAX RETURN PREPARER’’ 

in the heading for subsection (b) and inserting ‘‘TAX

RETURN PREPARER’’, and 

(IV) in subsection (c), by striking ‘‘income tax 

return preparers’’ and inserting ‘‘tax return preparers’’. 

(ii) The item relating to section 6107 in the table 

of sections for subchapter B of chapter 61 is amended 

by striking ‘‘Income tax return preparer’’ and inserting 

‘‘Tax return preparer’’. 

(D) Section 6109(a)(4) is amended—
H. R. 1591—90

(i) by striking ‘‘an income tax return preparer’’ 

and inserting ‘‘a tax return preparer’’, and 

(ii) by striking ‘‘INCOME RETURN PREPARER’’ in the 

heading and inserting ‘‘TAX RETURN PREPARER’’. 

(E) Section 6503(k)(4) is amended by striking ‘‘Income 

tax return preparers’’ and inserting ‘‘Tax return preparers’’. 

(F)(i) Section 6694 is amended—

(I) by striking ‘‘INCOME TAX RETURN PREPARER’’ 

in the heading and inserting ‘‘TAX RETURN PREPARER’’, 

(II) by striking ‘‘an income tax return preparer’’ 

each place it appears and inserting ‘‘a tax return preparer’’, 

(III) in subsection (c)(2), by striking ‘‘the income 

tax return preparer’’ and inserting ‘‘the tax return 

preparer’’, 

(IV) in subsection (e), by striking ‘‘subtitle A’’ and 

inserting ‘‘this title’’, and 

(V) in subsection (f), by striking ‘‘income tax return 

preparer’’ and inserting ‘‘tax return preparer’’. 

(ii) The item relating to section 6694 in the table 

of sections for part I of subchapter B of chapter 68 is 

amended by striking ‘‘income tax return preparer’’ and 

inserting ‘‘tax return preparer’’. 

(G)(i) Section 6695 is amended—

(I) by striking ‘‘INCOME’’ in the heading, and 

(II) by striking ‘‘an income tax return preparer’’ 

each place it appears and inserting ‘‘a tax return preparer’’. 

(ii) Section 6695(f) is amended—

(I) by striking ‘‘subtitle A’’ and inserting ‘‘this 

title’’, and 

(II) by striking ‘‘the income tax return preparer’’ 

and inserting ‘‘the tax return preparer’’. 

(iii) The item relating to section 6695 in the table 

of sections for part I of subchapter B of chapter 68 is 

amended by striking ‘‘income’’. 

(H) Section 6696(e) is amended by striking ‘‘subtitle 

A’’ each place it appears and inserting ‘‘this title’’. 

(I)(i) Section 7407 is amended—

(I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ 

in the heading and inserting ‘‘TAX RETURN PREPARERS’’, 

(II) by striking ‘‘an income tax return preparer’’ 

each place it appears and inserting ‘‘a tax return preparer’’, 

(III) by striking ‘‘income tax preparer’’ both places 

it appears in subsection (a) and inserting ‘‘tax return 

preparer’’, and 

(IV) by striking ‘‘income tax return’’ in subsection 

(a) and inserting ‘‘tax return’’. 

(ii) The item relating to section 7407 in the table 

of sections for subchapter A of chapter 76 is amended 

by striking ‘‘income tax return preparers’’ and inserting 

‘‘tax return preparers’’. 

(J)(i) Section 7427 is amended—
H. R. 1591—91

(I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ 

in the heading and inserting ‘‘TAX RETURN PREPARERS’’, and 

(II) by striking ‘‘an income tax return preparer’’ 

and inserting ‘‘a tax return preparer’’. 

(ii) The item relating to section 7427 in the table 

of sections for subchapter B of chapter 76 is amended 

to read as follows:

‘‘Sec. 7427. Tax return preparers.’’.

(b) MODIFICATION OF PENALTY FOR UNDERSTATEMENT OF TAX- PAYER’S LIABILITY BY TAX RETURN PREPARER.—Subsections (a) and 

(b) of section 6694 are amended to read as follows: 

‘‘(a) UNDERSTATEMENT DUE TO UNREASONABLE POSITIONS.—

‘‘(1) IN GENERAL.—Any tax return preparer who prepares 

any return or claim for refund with respect to which any 

part of an understatement of liability is due to a position 

described in paragraph (2) shall pay a penalty with respect 

to each such return or claim in an amount equal to the greater 

of—

‘‘(A) $1,000, or 

‘‘(B) 50 percent of the income derived (or to be derived) 

by the tax return preparer with respect to the return 

or claim. 

‘‘(2) UNREASONABLE POSITION.—A position is described in 

this paragraph if—

‘‘(A) the tax return preparer knew (or reasonably 

should have known) of the position, 

‘‘(B) there was not a reasonable belief that the position 

would more likely than not be sustained on its merits, 

and 

‘‘(C)(i) the position was not disclosed as provided in 

section 6662(d)(2)(B)(ii), or 

‘‘(ii) there was no reasonable basis for the position. 

‘‘(3) REASONABLE CAUSE EXCEPTION.—No penalty shall be 

imposed under this subsection if it is shown that there is 

reasonable cause for the understatement and the tax return 

preparer acted in good faith. 

‘‘(b) UNDERSTATEMENT DUE TO WILLFUL OR RECKLESS CONDUCT.—

‘‘(1) IN GENERAL.—Any tax return preparer who prepares 

any return or claim for refund with respect to which any 

part of an understatement of liability is due to a conduct 

described in paragraph (2) shall pay a penalty with respect 

to each such return or claim in an amount equal to the greater 

of—

‘‘(A) $5,000, or 

‘‘(B) 50 percent of the income derived (or to be derived) 

by the tax return preparer with respect to the return 

or claim. 

‘‘(2) WILLFUL OR RECKLESS CONDUCT.—Conduct described 

in this paragraph is conduct by the tax return preparer which 

is—

‘‘(A) a willful attempt in any manner to understate 

the liability for tax on the return or claim, or 

‘‘(B) a reckless or intentional disregard of rules or 

regulations. 
H. R. 1591—92

‘‘(3) REDUCTION IN PENALTY.—The amount of any penalty 

payable by any person by reason of this subsection for any 

return or claim for refund shall be reduced by the amount 

of the penalty paid by such person by reason of subsection 

(a).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns prepared after the date of the enactment 

of this Act. 

SEC. 7547. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS. 

(a) IN GENERAL.—Part I of subchapter B of chapter 68 (relating 

to assessable penalties) is amended by inserting after section 6675 

the following new section: 

‘‘SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT. 

‘‘(a) CIVIL PENALTY.—If a claim for refund or credit with respect 

to income tax (other than a claim for a refund or credit relating 

to the earned income credit under section 32) is made for an 

excessive amount, unless it is shown that the claim for such excessive amount has a reasonable basis, the person making such claim 

shall be liable for a penalty in an amount equal to 20 percent 

of the excessive amount. 

‘‘(b) EXCESSIVE AMOUNT.—For purposes of this section, the term 

‘excessive amount’ means in the case of any person the amount 

by which the amount of the claim for refund or credit for any 

taxable year exceeds the amount of such claim allowable under 

this title for such taxable year. 

‘‘(c) COORDINATION WITH OTHER PENALTIES.—This section shall 

not apply to any portion of the excessive amount of a claim for 

refund or credit which is subject to a penalty imposed under part 

II of subchapter A of chapter 68.’’. 

(b) CONFORMING AMENDMENT.—The table of sections for part 

I of subchapter B of chapter 68 is amended by inserting after 

the item relating to section 6675 the following new item:

‘‘Sec. 6676. Erroneous claim for refund or credit.’’.

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to any claim filed or submitted after the date of the 

enactment of this Act. 

SEC. 7548. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

Subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking ‘‘106.25 

percent’’ and inserting ‘‘114.25 percent’’. 
H. R. 1591—93

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

Care, Katrina Recovery, and Iraq Accountability Appropriations 

Act, 2007’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.