I 

110TH CONGRESS 

1ST SESSION H. R. 1591 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2007 

Ordered to be printed with the amendment of the Senate 

[Strike out all after the enacting clause and insert the part printed in italic] 

AN ACT 

Making emergency supplemental appropriations for the fiscal 

year ending September 30, 2007, and for other purposes. 

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

3 That the following sums are appropriated, out of any 

4 money in the Treasury not otherwise appropriated, for the 

5 fiscal year ending September 30, 2007, and for other pur6 poses, namely: 


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1 TITLE I—SUPPLEMENTAL APPROPRIATIONS 

2 FOR THE GLOBAL WAR ON TERROR 

3 CHAPTER 1 

4 DEPARTMENT OF AGRICULTURE 

5 FOREIGN AGRICULTURAL SERVICE 

6 PUBLIC LAW 480 TITLE II GRANTS

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

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

9 recoverable, and unrecovered prior years’ costs, including 

10 interest thereon, under the Agricultural Trade Develop11 ment and Assistance Act of 1954, for commodities sup12 plied in connection with dispositions abroad under title II 

13 of said Act, $450,000,000, to remain available until ex14 pended: Provided, That the amount provided under this 

15 heading is designated as making appropriations for contin16 gency operations directly related to the global war on ter17 rorism, and other unanticipated defense-related oper18 ations, pursuant to section 402 of H. Con. Res. 376 

19 (109th Congress), as made applicable to the House of 

20 Representatives by section 511(a)(4) of H. Res. 6 (110th 

21 Congress). 


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1 CHAPTER 2 

2 DEPARTMENT OF JUSTICE 

3 LEGAL ACTIVITIES

4 SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

5 For an additional amount for ‘‘Salaries and Ex6 penses, General Legal Activities’’, $1,648,000, to remain 

7 available until September 30, 2008: Provided, That the 

8 amount provided under this heading is designated as mak9 ing appropriations for contingency operations directly re10 lated to the global war on terrorism, and other unantici11 pated defense-related operations, pursuant to section 402 

12 of H. Con. Res. 376 (109th Congress), as made applicable 

13 to the House of Representatives by section 511(a)(4) of 

14 H. Res. 6 (110th Congress). 

15 SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

16 For an additional amount for ‘‘Salaries and Ex17 penses, United States Attorneys’’, $5,000,000, to remain 

18 available until September 30, 2008: Provided, That the 

19 amount provided under this heading is designated as mak20 ing appropriations for contingency operations directly re21 lated to the global war on terrorism, and other unantici22 pated defense-related operations, pursuant to section 402 

23 of H. Con. Res. 376 (109th Congress), as made applicable 

24 to the House of Representatives by section 511(a)(4) of 

25 H. Res. 6 (110th Congress). 


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1 UNITED STATES MARSHALS SERVICE

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $2,750,000, to remain available until September 

5 30, 2008: Provided, That the amount provided under this 

6 heading is designated as making appropriations for contin7 gency operations directly related to the global war on ter8 rorism, and other unanticipated defense-related oper9 ations, pursuant to section 402 of H. Con. Res. 376 

10 (109th Congress), as made applicable to the House of 

11 Representatives by section 511(a)(4) of H. Res. 6 (110th 

12 Congress). 

13 NATIONAL SECURITY DIVISION

14 SALARIES AND EXPENSES

15 For an additional amount for ‘‘Salaries and Ex16 penses’’, $1,736,000, to remain available until September 

17 30, 2008: Provided, That the amount provided under this 

18 heading is designated as making appropriations for contin19 gency operations directly related to the global war on ter20 rorism, and other unanticipated defense-related oper21 ations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 FEDERAL BUREAU OF INVESTIGATION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $118,260,000, to remain available until Sep5 tember 30, 2008: Provided, That the amount provided 

6 under this heading is designated as making appropriations 

7 for contingency operations directly related to the global 

8 war on terrorism, and other unanticipated defense-related 

9 operations, pursuant to section 402 of H. Con. Res. 376 

10 (109th Congress), as made applicable to the House of 

11 Representatives by section 511(a)(4) of H. Res. 6 (110th 

12 Congress). 

13 DRUG ENFORCEMENT ADMINISTRATION

14 SALARIES AND EXPENSES

15 For an additional amount for ‘‘Salaries and Ex16 penses’’, $8,468,000, to remain available until September 

17 30, 2008: Provided, That the amount provided under this 

18 heading is designated as making appropriations for contin19 gency operations directly related to the global war on ter20 rorism, and other unanticipated defense-related oper21 ations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND

2 EXPLOSIVES

3 SALARIES AND EXPENSES

4 For an additional amount for ‘‘Salaries and Ex5 penses’’, $4,000,000, to remain available until September 

6 30, 2008: Provided, That the amount provided under this 

7 heading is designated as making appropriations for contin8 gency operations directly related to the global war on ter9 rorism, and other unanticipated defense-related oper10 ations, pursuant to section 402 of H. Con. Res. 376 

11 (109th Congress), as made applicable to the House of 

12 Representatives by section 511(a)(4) of H. Res. 6 (110th 

13 Congress). 

14 FEDERAL PRISON SYSTEM

15 SALARIES AND EXPENSES

16 For an additional amount for ‘‘Salaries and Ex17 penses’’, $17,000,000, to remain available until September 

18 30, 2008: Provided, That the amount provided under this 

19 heading is designated as making appropriations for contin20 gency operations directly related to the global war on ter21 rorism, and other unanticipated defense-related oper22 ations, pursuant to section 402 of H. Con. Res. 376 

23 (109th Congress), as made applicable to the House of 

24 Representatives by section 511(a)(4) of H. Res. 6 (110th 

25 Congress). 


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1 CHAPTER 3 

2 DEPARTMENT OF DEFENSE—MILITARY 

3 MILITARY PERSONNEL 

4 MILITARY PERSONNEL, ARMY

5 For an additional amount for ‘‘Military Personnel, 

6 Army’’, $8,878,899,000: Provided, That the amount pro7 vided under this heading is designated as making appro8 priations for contingency operations directly related to the 

9 global war on terrorism, and other unanticipated defense10 related operations, pursuant to section 402 of H. Con. 

11 Res. 376 (109th Congress), as made applicable to the 

12 House of Representatives by section 511(a)(4) of H. Res. 

13 6 (110th Congress). 

14 MILITARY PERSONNEL, NAVY

15 For an additional amount for ‘‘Military Personnel, 

16 Navy’’, $1,100,410,000: Provided, That the amount pro17 vided under this heading is designated as making appro18 priations for contingency operations directly related to the 

19 global war on terrorism, and other unanticipated defense20 related operations, pursuant to section 402 of H. Con. 

21 Res. 376 (109th Congress), as made applicable to the 

22 House of Representatives by section 511(a)(4) of H. Res. 

23 6 (110th Congress). 


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1 MILITARY PERSONNEL, MARINE CORPS

2 For an additional amount for ‘‘Military Personnel, 

3 Marine Corps’’, $1,495,828,000: Provided, That the 

4 amount provided under this heading is designated as mak5 ing appropriations for contingency operations directly re6 lated to the global war on terrorism, and other unantici7 pated defense-related operations, pursuant to section 402 

8 of H. Con. Res. 376 (109th Congress), as made applicable 

9 to the House of Representatives by section 511(a)(4) of 

10 H. Res. 6 (110th Congress). 

11 MILITARY PERSONNEL, AIR FORCE

12 For an additional amount for ‘‘Military Personnel, 

13 Air Force’’, $1,229,334,000: Provided, That the amount 

14 provided under this heading is designated as making ap15 propriations for contingency operations directly related to 

16 the global war on terrorism, and other unanticipated de17 fense-related operations, pursuant to section 402 of H. 

18 Con. Res. 376 (109th Congress), as made applicable to 

19 the House of Representatives by section 511(a)(4) of H. 

20 Res. 6 (110th Congress). 

21 RESERVE PERSONNEL, ARMY

22 For an additional amount for ‘‘Reserve Personnel, 

23 Army’’, $173,244,000: Provided, That the amount pro24 vided under this heading is designated as making appro25 priations for contingency operations directly related to the 


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1 global war on terrorism, and other unanticipated defense2 related operations, pursuant to section 402 of H. Con. 

3 Res. 376 (109th Congress), as made applicable to the 

4 House of Representatives by section 511(a)(4) of H. Res. 

5 6 (110th Congress). 

6 RESERVE PERSONNEL, NAVY

7 For an additional amount for ‘‘Reserve Personnel, 

8 Navy’’, $82,800,000: Provided, That the amount provided 

9 under this heading is designated as making appropriations 

10 for contingency operations directly related to the global 

11 war on terrorism, and other unanticipated defense-related 

12 operations, pursuant to section 402 of H. Con. Res. 376 

13 (109th Congress), as made applicable to the House of 

14 Representatives by section 511(a)(4) of H. Res. 6 (110th 

15 Congress). 

16 RESERVE PERSONNEL, MARINE CORPS

17 For an additional amount for ‘‘Reserve Personnel, 

18 Marine Corps’’, $15,000,000: Provided, That the amount 

19 provided under this heading is designated as making ap20 propriations for contingency operations directly related to 

21 the global war on terrorism, and other unanticipated de22 fense-related operations, pursuant to section 402 of H. 

23 Con. Res. 376 (109th Congress), as made applicable to 

24 the House of Representatives by section 511(a)(4) of H. 

25 Res. 6 (110th Congress). 


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1 RESERVE PERSONNEL, AIR FORCE

2 For an additional amount for ‘‘Reserve Personnel, 

3 Air Force’’, $14,100,000: Provided, That the amount pro4 vided under this heading is designated as making appro5 priations for contingency operations directly related to the 

6 global war on terrorism, and other unanticipated defense7 related operations, pursuant to section 402 of H. Con. 

8 Res. 376 (109th Congress), as made applicable to the 

9 House of Representatives by section 511(a)(4) of H. Res. 

10 6 (110th Congress). 

11 NATIONAL GUARD PERSONNEL, ARMY

12 For an additional amount for ‘‘National Guard Per13 sonnel, Army’’, $552,725,000: Provided, That the amount 

14 provided under this heading is designated as making ap15 propriations for contingency operations directly related to 

16 the global war on terrorism, and other unanticipated de17 fense-related operations, pursuant to section 402 of H. 

18 Con. Res. 376 (109th Congress), as made applicable to 

19 the House of Representatives by section 511(a)(4) of H. 

20 Res. 6 (110th Congress). 

21 NATIONAL GUARD PERSONNEL, AIR FORCE

22 For an additional amount for ‘‘National Guard Per23 sonnel, Air Force’’, $24,600,000: Provided, That the 

24 amount provided under this heading is designated as mak25 ing appropriations for contingency operations directly reVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 lated to the global war on terrorism, and other unantici2 pated defense-related operations, pursuant to section 402 

3 of H. Con. Res. 376 (109th Congress), as made applicable 

4 to the House of Representatives by section 511(a)(4) of 

5 H. Res. 6 (110th Congress). 

6 OPERATION AND MAINTENANCE 

7 OPERATION AND MAINTENANCE, ARMY

8 For an additional amount for ‘‘Operation and Main9 tenance, Army’’, $20,897,672,000: Provided, That the 

10 amount provided under this heading is designated as mak11 ing appropriations for contingency operations directly re12 lated to the global war on terrorism, and other unantici13 pated defense-related operations, pursuant to section 402 

14 of H. Con. Res. 376 (109th Congress), as made applicable 

15 to the House of Representatives by section 511(a)(4) of 

16 H. Res. 6 (110th Congress). 

17 OPERATION AND MAINTENANCE, NAVY

18 (INCLUDING TRANSFER OF FUNDS)

19 For an additional amount for ‘‘Operation and Main20 tenance, Navy’’, $5,115,397,000, of which up to 

21 $120,293,000 may be transferred to Coast Guard ‘‘Oper22 ating Expenses’’, for reimbursement for activities which 

23 support activities requested by the Navy: Provided, That 

24 the amount provided under this heading is designated as 

25 making appropriations for contingency operations directly 


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1 related to the global war on terrorism, and other unantici2 pated defense-related operations, pursuant to section 402 

3 of H. Con. Res. 376 (109th Congress), as made applicable 

4 to the House of Representatives by section 511(a)(4) of 

5 H. Res. 6 (110th Congress). 

6 OPERATION AND MAINTENANCE, MARINE CORPS

7 For an additional amount for ‘‘Operation and Main8 tenance, Marine Corps’’, $1,503,694,000: Provided, That 

9 the amount provided under this heading is designated as 

10 making appropriations for contingency operations directly 

11 related to the global war on terrorism, and other unantici12 pated defense-related operations, pursuant to section 402 

13 of H. Con. Res. 376 (109th Congress), as made applicable 

14 to the House of Representatives by section 511(a)(4) of 

15 H. Res. 6 (110th Congress). 

16 OPERATION AND MAINTENANCE, AIR FORCE

17 For an additional amount for ‘‘Operation and Main18 tenance, Air Force’’, $6,909,259,000: Provided, That the 

19 amount provided under this heading is designated as mak20 ing appropriations for contingency operations directly re21 lated to the global war on terrorism, and other unantici22 pated defense-related operations, pursuant to section 402 

23 of H. Con. Res. 376 (109th Congress), as made applicable 

24 to the House of Representatives by section 511(a)(4) of 

25 H. Res. 6 (110th Congress). 


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1 OPERATION AND MAINTENANCE, DEFENSE-WIDE

2 For an additional amount for ‘‘Operation and Main3 tenance, Defense-Wide’’, $2,855,993,000, of which not to 

4 exceed $300,000,000, to remain available until expended, 

5 may be used for payments to reimburse Pakistan, Jordan, 

6 and other key cooperating nations, for logistical, military, 

7 and other support provided, or to be provided, to United 

8 States military operations, notwithstanding any other pro9 vision of law: Provided, That such payments may be made 

10 in such amounts as the Secretary of Defense, with the con11 currence of the Secretary of State, and in consultation 

12 with the Director of the Office of Management and Budg13 et, may determine, in his discretion, based on documenta14 tion determined by the Secretary of Defense to adequately 

15 account for the support provided, and such determination 

16 is final and conclusive upon the accounting officers of the 

17 United States, and 15 days following notification to the 

18 appropriate congressional committees: Provided further, 

19 That the Secretary of Defense shall provide quarterly re20 ports to the congressional defense committees on the use 

21 of funds provided in this paragraph: Provided further, 

22 That the amount provided under this heading is des23 ignated as making appropriations for contingency oper24 ations directly related to the global war on terrorism, and 

25 other unanticipated defense-related operations, pursuant 


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1 to section 402 of H. Con. Res. 376 (109th Congress), as 

2 made applicable to the House of Representatives by sec3 tion 511(a)(4) of H. Res. 6 (110th Congress). 

4 OPERATION AND MAINTENANCE, ARMY RESERVE

5 For an additional amount for ‘‘Operation and Main6 tenance, Army Reserve’’, $74,049,000: Provided, That the 

7 amount provided under this heading is designated as mak8 ing appropriations for contingency operations directly re9 lated to the global war on terrorism, and other unantici10 pated defense-related operations, pursuant to section 402 

11 of H. Con. Res. 376 (109th Congress), as made applicable 

12 to the House of Representatives by section 511(a)(4) of 

13 H. Res. 6 (110th Congress). 

14 OPERATION AND MAINTENANCE, NAVY RESERVE

15 For an additional amount for ‘‘Operation and Main16 tenance, Navy Reserve’’, $111,066,000: Provided, That 

17 the amount provided under this heading is designated as 

18 making appropriations for contingency operations directly 

19 related to the global war on terrorism, and other unantici20 pated defense-related operations, pursuant to section 402 

21 of H. Con. Res. 376 (109th Congress), as made applicable 

22 to the House of Representatives by section 511(a)(4) of 

23 H. Res. 6 (110th Congress). 


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1 OPERATION AND MAINTENANCE, MARINE CORPS

2 RESERVE

3 For an additional amount for ‘‘Operation and Main4 tenance, Marine Corps Reserve’’, $13,591,000: Provided, 

5 That the amount provided under this heading is des6 ignated as making appropriations for contingency oper7 ations directly related to the global war on terrorism, and 

8 other unanticipated defense-related operations, pursuant 

9 to section 402 of H. Con. Res. 376 (109th Congress), as 

10 made applicable to the House of Representatives by sec11 tion 511(a)(4) of H. Res. 6 (110th Congress). 

12 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

13 For an additional amount for ‘‘Operation and Main14 tenance, Air Force Reserve’’, $10,160,000: Provided, That 

15 the amount provided under this heading is designated as 

16 making appropriations for contingency operations directly 

17 related to the global war on terrorism, and other unantici18 pated defense-related operations, pursuant to section 402 

19 of H. Con. Res. 376 (109th Congress), as made applicable 

20 to the House of Representatives by section 511(a)(4) of 

21 H. Res. 6 (110th Congress). 

22 OPERATION AND MAINTENANCE, ARMY NATIONAL

23 GUARD

24 For an additional amount for ‘‘Operation and Main25 tenance, Army National Guard’’, $133,569,000: Provided, 


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1 That the amount provided under this heading is des2 ignated as making appropriations for contingency oper3 ations directly related to the global war on terrorism, and 

4 other unanticipated defense-related operations, pursuant 

5 to section 402 of H. Con. Res. 376 (109th Congress), as 

6 made applicable to the House of Representatives by sec7 tion 511(a)(4) of H. Res. 6 (110th Congress). 

8 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

9 For an additional amount for ‘‘Operation and Main10 tenance, Air National Guard’’, $38,429,000: Provided, 

11 That the amount provided under this heading is des12 ignated as making appropriations for contingency oper13 ations directly related to the global war on terrorism, and 

14 other unanticipated defense-related operations, pursuant 

15 to section 402 of H. Con. Res. 376 (109th Congress), as 

16 made applicable to the House of Representatives by sec17 tion 511(a)(4) of H. Res. 6 (110th Congress). 

18 AFGHANISTAN SECURITY FORCES FUND

19 For an additional amount for ‘‘Afghanistan Security 

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

21 September 30, 2008: Provided, That the amount provided 

22 under this heading is designated as making appropriations 

23 for contingency operations directly related to the global 

24 war on terrorism, and other unanticipated defense-related 

25 operations, pursuant to section 402 of H. Con. Res. 376 


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1 (109th Congress), as made applicable to the House of 

2 Representatives by section 511(a)(4) of H. Res. 6 (110th 

3 Congress). 

4 IRAQ SECURITY FORCES FUND

5 For an additional amount for ‘‘Iraq Security Forces 

6 Fund’’, $3,842,300,000, to remain available until Sep7 tember 30, 2008: Provided, That the amount provided 

8 under this heading is designated as making appropriations 

9 for contingency operations directly related to the global 

10 war on terrorism, and other unanticipated defense-related 

11 operations, pursuant to section 402 of H. Con. Res. 376 

12 (109th Congress), as made applicable to the House of 

13 Representatives by section 511(a)(4) of H. Res. 6 (110th 

14 Congress). 

15 IRAQ FREEDOM FUND

16 (INCLUDING TRANSFER OF FUNDS)

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

18 $155,600,000, to remain available for transfer until Sep19 tember 30, 2008: Provided, That the amount provided 

20 under this heading is designated as making appropriations 

21 for contingency operations directly related to the global 

22 war on terrorism, and other unanticipated defense-related 

23 operations, pursuant to section 402 of H. Con. Res. 376 

24 (109th Congress), as made applicable to the House of 


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1 Representatives by section 511(a)(4) of H. Res. 6 (110th 

2 Congress). 

3 JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

4 For an additional amount for ‘‘Joint Improvised Ex5 plosive Device Defeat Fund’’, $2,432,800,000, to remain 

6 available until September 30, 2009: Provided, That the 

7 amount provided under this heading is designated as mak8 ing appropriations for contingency operations directly re9 lated to the global war on terrorism, and other unantici10 pated defense-related operations, pursuant to section 402 

11 of H. Con. Res. 376 (109th Congress), as made applicable 

12 to the House of Representatives by section 511(a)(4) of 

13 H. Res. 6 (110th Congress). 

14 STRATEGIC RESERVE READINESS FUND

15 (INCLUDING TRANSFER OF FUNDS)

16 In addition to amounts provided in this or any other 

17 Act, for training, operations, repair of equipment, pur18 chases of equipment, and other expenses related to im19 proving the readiness of non-deployed United States mili20 tary forces, $2,500,000,000, to remain available until ex21 pended: Provided, That the Secretary of Defense may 

22 transfer funds provided herein only to appropriations for 

23 military personnel, operation and maintenance, procure24 ment, and defense working capital funds to accomplish the 

25 purposes provided herein: Provided further, That the funds 


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1 transferred shall be merged with and shall be available for 

2 the same purposes and for the same time period as the 

3 appropriation to which transferred: Provided further, That 

4 the Secretary of Defense shall, not fewer than five days 

5 prior to making transfers under this authority, notify the 

6 congressional defense committees in writing of the details 

7 of any such transfers made pursuant to this authority: 

8 Provided further, That funds shall be transferred to the 

9 appropriation accounts not later than 120 days after the 

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

11 authority provided in this paragraph is in addition to any 

12 other transfer authority available to the Department of 

13 Defense: Provided further, That upon a determination that 

14 all or part of the funds transferred from this appropriation 

15 are not necessary for the purposes provided herein, such 

16 amounts may be transferred back to this appropriation: 

17 Provided further, That the amount provided under this 

18 heading is designated as making appropriations for contin19 gency operations directly related to the global war on ter20 rorism, and other unanticipated defense-related oper21 ations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 PROCUREMENT 

2 AIRCRAFT PROCUREMENT, ARMY

3 For an additional amount for ‘‘Aircraft Procurement, 

4 Army’’, $461,850,000, to remain available until Sep5 tember 30, 2009: Provided, That the amount provided 

6 under this heading is designated as making appropriations 

7 for contingency operations directly related to the global 

8 war on terrorism, and other unanticipated defense-related 

9 operations, pursuant to section 402 of H. Con. Res. 376 

10 (109th Congress), as made applicable to the House of 

11 Representatives by section 511(a)(4) of H. Res. 6 (110th 

12 Congress). 

13 MISSILE PROCUREMENT, ARMY

14 For an additional amount for ‘‘Missile Procurement, 

15 Army’’, $160,173,000, to remain available until Sep16 tember 30, 2009: Provided, That the amount provided 

17 under this heading is designated as making appropriations 

18 for contingency operations directly related to the global 

19 war on terrorism, and other unanticipated defense-related 

20 operations, pursuant to section 402 of H. Con. Res. 376 

21 (109th Congress), as made applicable to the House of 

22 Representatives by section 511(a)(4) of H. Res. 6 (110th 

23 Congress). 


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1 PROCUREMENT OF WEAPONS AND TRACKED COMBAT

2 VEHICLES, ARMY

3 For an additional amount for ‘‘Procurement of Weap4 ons and Tracked Combat Vehicles, Army’’, 

5 $3,474,389,000, to remain available until September 30, 

6 2009: Provided, That the amount provided under this 

7 heading is designated as making appropriations for contin8 gency operations directly related to the global war on ter9 rorism, and other unanticipated defense-related oper10 ations, pursuant to section 402 of H. Con. Res. 376 

11 (109th Congress), as made applicable to the House of 

12 Representatives by section 511(a)(4) of H. Res. 6 (110th 

13 Congress). 

14 PROCUREMENT OF AMMUNITION, ARMY

15 For an additional amount for ‘‘Procurement of Am16 munition, Army’’, $681,500,000, to remain available until 

17 September 30, 2009: Provided, That the amount provided 

18 under this heading is designated as making appropriations 

19 for contingency operations directly related to the global 

20 war on terrorism, and other unanticipated defense-related 

21 operations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 OTHER PROCUREMENT, ARMY

2 For an additional amount for ‘‘Other Procurement, 

3 Army’’, $10,197,399,000, to remain available until Sep4 tember 30, 2009: Provided, That the amount provided 

5 under this heading is designated as making appropriations 

6 for contingency operations directly related to the global 

7 war on terrorism, and other unanticipated defense-related 

8 operations, pursuant to section 402 of H. Con. Res. 376 

9 (109th Congress), as made applicable to the House of 

10 Representatives by section 511(a)(4) of H. Res. 6 (110th 

11 Congress). 

12 AIRCRAFT PROCUREMENT, NAVY

13 For an additional amount for ‘‘Aircraft Procurement, 

14 Navy’’, $995,797,000, to remain available until September 

15 30, 2009: Provided, That the amount provided under this 

16 heading is designated as making appropriations for contin17 gency operations directly related to the global war on ter18 rorism, and other unanticipated defense-related oper19 ations, pursuant to section 402 of H. Con. Res. 376 

20 (109th Congress), as made applicable to the House of 

21 Representatives by section 511(a)(4) of H. Res. 6 (110th 

22 Congress). 

23 WEAPONS PROCUREMENT, NAVY

24 For an additional amount for ‘‘Weapons Procure25 ment, Navy’’, $171,813,000, to remain available until 


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1 September 30, 2009: Provided, That the amount provided 

2 under this heading is designated as making appropriations 

3 for contingency operations directly related to the global 

4 war on terrorism, and other unanticipated defense-related 

5 operations, pursuant to section 402 of H. Con. Res. 376 

6 (109th Congress), as made applicable to the House of 

7 Representatives by section 511(a)(4) of H. Res. 6 (110th 

8 Congress). 

9 PROCUREMENT OF AMMUNITION, NAVY AND MARINE

10 CORPS

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

14 the amount provided under this heading is designated as 

15 making appropriations for contingency operations directly 

16 related to the global war on terrorism, and other unantici17 pated defense-related operations, pursuant to section 402 

18 of H. Con. Res. 376 (109th Congress), as made applicable 

19 to the House of Representatives by section 511(a)(4) of 

20 H. Res. 6 (110th Congress). 

21 OTHER PROCUREMENT, NAVY

22 For an additional amount for ‘‘Other Procurement, 

23 Navy’’, $937,407,000, to remain available until September 

24 30, 2009: Provided, That the amount provided under this 

25 heading is designated as making appropriations for continVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 gency operations directly related to the global war on ter2 rorism, and other unanticipated defense-related oper3 ations, pursuant to section 402 of H. Con. Res. 376 

4 (109th Congress), as made applicable to the House of 

5 Representatives by section 511(a)(4) of H. Res. 6 (110th 

6 Congress). 

7 PROCUREMENT, MARINE CORPS

8 For an additional amount for ‘‘Procurement, Marine 

9 Corps’’, $1,885,383,000, to remain available until Sep10 tember 30, 2009: Provided, That the amount provided 

11 under this heading is designated as making appropriations 

12 for contingency operations directly related to the global 

13 war on terrorism, and other unanticipated defense-related 

14 operations, pursuant to section 402 of H. Con. Res. 376 

15 (109th Congress), as made applicable to the House of 

16 Representatives by section 511(a)(4) of H. Res. 6 (110th 

17 Congress). 

18 AIRCRAFT PROCUREMENT, AIR FORCE

19 For an additional amount for ‘‘Aircraft Procurement, 

20 Air Force’’, $2,474,916,000, to remain available until 

21 September 30, 2009: Provided, That the amount provided 

22 under this heading is designated as making appropriations 

23 for contingency operations directly related to the global 

24 war on terrorism, and other unanticipated defense-related 

25 operations, pursuant to section 402 of H. Con. Res. 376 


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1 (109th Congress), as made applicable to the House of 

2 Representatives by section 511(a)(4) of H. Res. 6 (110th 

3 Congress). 

4 MISSILE PROCUREMENT, AIR FORCE

5 For an additional amount for ‘‘Missile Procurement, 

6 Air Force’’, $140,300,000, to remain available until Sep7 tember 30, 2009: Provided, That the amount provided 

8 under this heading is designated as making appropriations 

9 for contingency operations directly related to the global 

10 war on terrorism, and other unanticipated defense-related 

11 operations, pursuant to section 402 of H. Con. Res. 376 

12 (109th Congress), as made applicable to the House of 

13 Representatives by section 511(a)(4) of H. Res. 6 (110th 

14 Congress). 

15 PROCUREMENT OF AMMUNITION, AIR FORCE

16 For an additional amount for ‘‘Procurement of Am17 munition, Air Force’’, $95,800,000, to remain available 

18 until September 30, 2009: Provided, That the amount pro19 vided under this heading is designated as making appro20 priations for contingency operations directly related to the 

21 global war on terrorism, and other unanticipated defense22 related operations, pursuant to section 402 of H. Con. 

23 Res. 376 (109th Congress), as made applicable to the 

24 House of Representatives by section 511(a)(4) of H. Res. 

25 6 (110th Congress). 


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1 OTHER PROCUREMENT, AIR FORCE

2 For an additional amount for ‘‘Other Procurement, 

3 Air Force’’, $2,042,183,000, to remain available until 

4 September 30, 2009: Provided, That the amount provided 

5 under this heading is designated as making appropriations 

6 for contingency operations directly related to the global 

7 war on terrorism, and other unanticipated defense-related 

8 operations, pursuant to section 402 of H. Con. Res. 376 

9 (109th Congress), as made applicable to the House of 

10 Representatives by section 511(a)(4) of H. Res. 6 (110th 

11 Congress). 

12 PROCUREMENT, DEFENSE-WIDE

13 For an additional amount for ‘‘Procurement, De14 fense-Wide’’, $934,930,000, to remain available until Sep15 tember 30, 2009: Provided, That the amount provided 

16 under this heading is designated as making appropriations 

17 for contingency operations directly related to the global 

18 war on terrorism, and other unanticipated defense-related 

19 operations, pursuant to section 402 of H. Con. Res. 376 

20 (109th Congress), as made applicable to the House of 

21 Representatives by section 511(a)(4) of H. Res. 6 (110th 

22 Congress). 


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1 RESEARCH, DEVELOPMENT, TEST AND 

2 EVALUATION 

3 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

4 ARMY

5 For an additional amount for ‘‘Research, Develop6 ment, Test and Evaluation, Army’’, $60,781,000, to re7 main available until September 30, 2008: Provided, That 

8 the amount provided under this heading is designated as 

9 making appropriations for contingency operations directly 

10 related to the global war on terrorism, and other unantici11 pated defense-related operations, pursuant to section 402 

12 of H. Con. Res. 376 (109th Congress), as made applicable 

13 to the House of Representatives by section 511(a)(4) of 

14 H. Res. 6 (110th Congress). 

15 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

16 NAVY

17 For an additional amount for ‘‘Research, Develop18 ment, Test and Evaluation, Navy’’, $295,737,000, to re19 main available until September 30, 2008: Provided, That 

20 the amount provided under this heading is designated as 

21 making appropriations for contingency operations directly 

22 related to the global war on terrorism, and other unantici23 pated defense-related operations, pursuant to section 402 

24 of H. Con. Res. 376 (109th Congress), as made applicable 


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1 to the House of Representatives by section 511(a)(4) of 

2 H. Res. 6 (110th Congress). 

3 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

4 AIR FORCE

5 For an additional amount for ‘‘Research, Develop6 ment, Test and Evaluation, Air Force’’, $132,928,000, to 

7 remain available until September 30, 2008: Provided, 

8 That the amount provided under this heading is des9 ignated as making appropriations for contingency oper10 ations directly related to the global war on terrorism, and 

11 other unanticipated defense-related operations, pursuant 

12 to section 402 of H. Con. Res. 376 (109th Congress), as 

13 made applicable to the House of Representatives by sec14 tion 511(a)(4) of H. Res. 6 (110th Congress). 

15 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

16 DEFENSE-WIDE

17 For an additional amount for ‘‘Research, Develop18 ment, Test and Evaluation, Defense-Wide’’, 

19 $545,904,000, to remain available until September 30, 

20 2008: Provided, That the amount provided under this 

21 heading is designated as making appropriations for contin22 gency operations directly related to the global war on ter23 rorism, and other unanticipated defense-related oper24 ations, pursuant to section 402 of H. Con. Res. 376 

25 (109th Congress), as made applicable to the House of 


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1 Representatives by section 511(a)(4) of H. Res. 6 (110th 

2 Congress). 

3 REVOLVING AND MANAGEMENT FUNDS 

4 DEFENSE WORKING CAPITAL FUNDS

5 For an additional amount for ‘‘Defense Working 

6 Capital Funds’’, $1,315,526,000: Provided, That the 

7 amount provided under this heading is designated as mak8 ing appropriations for contingency operations directly re9 lated to the global war on terrorism, and other unantici10 pated defense-related operations, pursuant to section 402 

11 of H. Con. Res. 376 (109th Congress), as made applicable 

12 to the House of Representatives by section 511(a)(4) of 

13 H. Res. 6 (110th Congress). 

14 NATIONAL DEFENSE SEALIFT FUND

15 For an additional amount for ‘‘National Defense Sea16 lift Fund’’, $5,000,000: Provided, That the amount pro17 vided under this heading is designated as making appro18 priations for contingency operations directly related to the 

19 global war on terrorism, and other unanticipated defense20 related operations, pursuant to section 402 of H. Con. 

21 Res. 376 (109th Congress), as made applicable to the 

22 House of Representatives by section 511(a)(4) of H. Res. 

23 6 (110th Congress). 


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1 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

2 DEFENSE HEALTH PROGRAM

3 For an additional amount for ‘‘Defense Health Pro4 gram’’, $2,789,703,000; of which $2,289,703,000 shall be 

5 for operation and maintenance, which shall remain avail6 able until September 30, 2008; and of which 

7 $500,000,000 shall be for research, development, test and 

8 evaluation, which shall remain available until September 

9 30, 2009: Provided, That the amount provided under this 

10 heading is designated as making appropriations for contin11 gency operations directly related to the global war on ter12 rorism, and other unanticipated defense-related oper13 ations, pursuant to section 402 of H. Con. Res. 376 

14 (109th Congress), as made applicable to the House of 

15 Representatives by section 511(a)(4) of H. Res. 6 (110th 

16 Congress). 

17 DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, 

18 DEFENSE

19 For an additional amount for ‘‘Drug Interdiction and 

20 Counter-Drug Activities, Defense’’, $259,115,000, to re21 main available until expended: Provided, That the amount 

22 provided under this heading is designated as making ap23 propriations for contingency operations directly related to 

24 the global war on terrorism, and other unanticipated de25 fense-related operations, pursuant to section 402 of H. 


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1 Con. Res. 376 (109th Congress), as made applicable to 

2 the House of Representatives by section 511(a)(4) of H. 

3 Res. 6 (110th Congress). 

4 RELATED AGENCIES 

5 INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

6 For an additional amount for ‘‘Intelligence Commu7 nity Management Account’’, $57,426,000: Provided, That 

8 the amount provided under this heading is designated as 

9 making appropriations for contingency operations directly 

10 related to the global war on terrorism, and other unantici11 pated defense-related operations, pursuant to section 402 

12 of H. Con. Res. 376 (109th Congress), as made applicable 

13 to the House of Representatives by section 511(a)(4) of 

14 H. Res. 6 (110th Congress). 

15 GENERAL PROVISIONS—THIS CHAPTER 

16 SEC. 1301. Appropriations provided in this chapter 

17 are available for obligation until September 30, 2007, un18 less otherwise provided in this chapter. 

19 (TRANSFER OF FUNDS)

20 SEC. 1302. Upon his determination that such action 

21 is necessary in the national interest, the Secretary of De22 fense may transfer between appropriations up to 

23 $3,500,000,000 of the funds made available to the De24 partment of Defense in this chapter: Provided, That the 

25 Secretary shall notify the Congress promptly of each 

26 transfer made pursuant to the authority in this section: 


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1 Provided further, That the authority provided in this sec2 tion is in addition to any other transfer authority available 

3 to the Department of Defense and is subject to the same 

4 terms and conditions as the authority provided in section 

5 8005 of the Department of Defense Appropriations Act, 

6 2007 (Public Law 109–289; 120 Stat. 1257), except for 

7 the fourth proviso. 

8 SEC. 1303. Funds appropriated in this chapter, or 

9 made available by the transfer of funds in or pursuant 

10 to this chapter, for intelligence activities are deemed to 

11 be specifically authorized by the Congress for purposes of 

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

13 (50 U.S.C. 414(a)(1)). 

14 SEC. 1304. None of the funds provided in this chap15 ter may be used to finance programs or activities denied 

16 by Congress in fiscal years 2006 or 2007 appropriations 

17 to the Department of Defense or to initiate a procurement 

18 or research, development, test and evaluation new start 

19 program without prior written notification to the congres20 sional defense committees. 

21 (TRANSFER OF FUNDS)

22 SEC. 1305. During fiscal year 2007, the Secretary 

23 of Defense may transfer amounts in or credited to the De24 fense Cooperation Account, pursuant to 10 U.S.C. 2608, 

25 to such appropriations or funds of the Department of De26 fense as he shall determine for use consistent with the purVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 poses for which such funds were contributed and accepted: 

2 Provided, That such amounts shall be available for the 

3 same time period as the appropriation to which trans4 ferred: Provided further, That the Secretary shall report 

5 to the Congress all transfers made pursuant to this au6 thority: Provided further, That funds made available pur7 suant to this section are designated as making appropria8 tions for contingency operations directly related to the 

9 global war on terrorism, and other unanticipated defense10 related operations, pursuant to section 402 of H. Con. 

11 Res. 376 (109th Congress), as made applicable to the 

12 House of Representatives by section 511(a)(4) of H. Res. 

13 6 (110th Congress). 

14 SEC. 1306. (a) AUTHORITY TO PROVIDE SUP15 PORT.—Of the amount appropriated by this chapter under 

16 the heading, ‘‘Drug Interdiction and Counter-Drug Activi17 ties, Defense’’, not to exceed $100,000,000 may be used 

18 for support for counter-drug activities of the Governments 

19 of Afghanistan and Pakistan: Provided, That such support 

20 shall be in addition to support provided for the counter21 drug activities of such Governments under any other pro22 vision of the law. 

23 (b) TYPES OF SUPPORT.— 

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

25 this section, the support that may be provided under 


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1 the authority in this section shall be limited to the 

2 types of support specified in section 1033(c)(1) of 

3 the National Defense Authorization Act for Fiscal 

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

5 Public Laws 106–398, 108–136, and 109–364) and 

6 conditions on the provision of support as contained 

7 in section 1033 shall apply for fiscal year 2007. 

8 (2) The Secretary of Defense may transfer ve9 hicles, aircraft, and detection, interception, moni10 toring and testing equipment to said Governments 

11 for counter-drug activities. 

12 SEC. 1307. (a) From funds made available for oper13 ation and maintenance in this chapter to the Department 

14 of Defense, not to exceed $456,000,000 may be used, not15 withstanding any other provision of law, to fund the Com16 mander’s Emergency Response Program, for the purpose 

17 of enabling military commanders in Iraq and Afghanistan 

18 to respond to urgent humanitarian relief and reconstruc19 tion requirements within their areas of responsibility by 

20 carrying out programs that will immediately assist the 

21 Iraqi and Afghan people. 

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

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

24 of Defense shall submit to the congressional defense com25 mittees a report regarding the source of funds and the 


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1 allocation and use of funds during that quarter that were 

2 made available pursuant to the authority provided in this 

3 section or under any other provision of law for the pur4 poses of the programs under subsection (a). 

5 SEC. 1308. Supervision and administration costs as6 sociated with a construction project funded with appro7 priations available for operation and maintenance, and ex8 ecuted in direct support of the Global War on Terrorism 

9 only in Iraq and Afghanistan, may be obligated at the time 

10 a construction contract is awarded: Provided, That for the 

11 purpose of this section, supervision and administration 

12 costs include all in-house Government costs. 

13 SEC. 1309. Section 9010 of division A of Public Law 

14 109–289 is amended by striking ‘‘2007’’ each place it ap15 pears and inserting ‘‘2008’’. 

16 SEC. 1310. Section 1005(c)(2) of the National De17 fense Authorization Act, FY 2007 (Public Law 109–364) 

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

19 ‘‘$376,446,000’’. 

20 SEC. 1311. None of the funds appropriated or other21 wise made available by this or any other Act shall be obli22 gated or expended by the United States Government for 

23 a purpose as follows: 


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1 (1) To establish any military installation or 

2 base for the purpose of providing for the permanent 

3 stationing of United States Armed Forces in Iraq. 

4 (2) To exercise United States control over any 

5 oil resource of Iraq. 

6 (TRANSFER OF FUNDS)

7 SEC. 1312. (a) Of the funds appropriated or made 

8 available in this chapter under the heading ‘‘Operation 

9 and Maintenance, Defense-Wide’’, up to $100,000,000 

10 may be made available for transfer to the Department of 

11 State ‘‘Economic Support Fund’’ account to support pro12 vincial reconstruction teams in Iraq and Afghanistan: Pro13 vided, That these funds may be transferred by the Sec14 retary of Defense only if he determines such amounts are 

15 required to assist in reconstruction efforts in Iraq and Af16 ghanistan. 

17 (b) The transfer authority in this section is in addi18 tion to any other transfer authority available to the De19 partment of Defense. 

20 (c) The Secretary shall, not fewer than five days prior 

21 to making transfers under this authority, notify the con22 gressional defense committees in writing of the details of 

23 such transfer. 

24 SEC. 1313. None of the funds made available in this 

25 Act may be used in contravention of the following laws 

26 enacted or regulations promulgated to implement the 


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1 United Nations Convention Against Torture and Other 

2 Cruel, Inhuman or Degrading Treatment or Punishment 

3 (done at New York on December 10, 1984): 

4 (1) Section 2340A of title 18, United States 

5 Code; 

6 (2) Section 2242 of the Foreign Affairs Reform 

7 and Restructuring Act of 1998 (division G of Public 

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

9 note) and regulations prescribed thereto, including 

10 regulations under part 208 of title 8, Code of Fed11 eral Regulations, and part 95 of title 22, Code of 

12 Federal Regulations; 

13 (3) Sections 1002 and 1003 of the Department 

14 of Defense, Emergency Supplemental Appropriations 

15 to Address Hurricanes in the Gulf of Mexico, and 

16 Pandemic Influenza Act, 2006 (Public Law 109– 

17 148); and 

18 (4) The limitation included in this section also 

19 applies to renditions. 

20 SEC. 1314. (a) Not more than 50 percent of the 

21 amount of the funds appropriated by this Act under each 

22 of the headings ‘‘Iraq Security Forces Fund’’ and ‘‘Af23 ghanistan Security Forces Fund’’ shall be available for ob24 ligation or expenditure until the Secretary of Defense sub25 mits the initial report required by subsection (b) and the 


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1 Director of the Office of Management and Budget submits 

2 the initial report required by subsection (c). 

3 (b) REPORT BY SECRETARY OF DEFENSE.— 

4 (1) The Secretary of Defense shall submit to 

5 the congressional defense committees a report that 

6 contains individual transition readiness assessments 

7 by unit of Iraq and Afghan security forces. The Sec8 retary of Defense shall submit to the congressional 

9 defense committees updates of the report required 

10 by this subsection on a monthly basis until October 

11 1, 2008. The report and updates of the report re12 quired by this subsection shall be submitted in clas13 sified form. 

14 (2) In this subsection, the term ‘‘congressional 

15 defense committees’’ means the Committees on Ap16 propriations and Armed Services of the House of 

17 Representatives and the Committees on Appropria18 tions and Armed Services of the Senate. 

19 (c) REPORT BY OMB.— 

20 (1) The Director of the Office of Management 

21 and Budget, in consultation with the Secretary of 

22 Defense; the Commander, Multi-National Security 

23 Transition Command—Iraq; the Commander, Com24 bined Security Transition Command—Afghanistan; 

25 and the Committees on Appropriations of the House 


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1 of Representatives and the Senate, shall submit to 

2 the Committees on Appropriations not later than 60 

3 days after the date of the enactment of this Act and 

4 every 90 days thereafter a report on the proposed 

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

6 Security Forces Fund’’ and ‘‘Afghanistan Security 

7 Forces Fund’’ on a project-by-project basis, for 

8 which the obligation of funds is anticipated during 

9 the three month period from such date, including es10 timates by the commanders referred to in this para11 graph of the costs required to complete each such 

12 project. 

13 (2) The report required by this subsection shall 

14 include the following: 

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

17 under the headings referred to in paragraph (1) 

18 were obligated prior to the submission of the re19 port, including estimates by the commanders 

20 referred to in paragraph (1) of the costs to 

21 complete each project. 

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

24 under the headings referred to in paragraph (1) 

25 in prior appropriations Acts, or for which funds 


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

3 appropriations Acts, including estimates by the 

4 commanders referred to in paragraph (1) of the 

5 costs to complete each project. 

6 (C) An estimated total cost to train and 

7 equip the Iraq and Afghan security forces, 

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

10 (d) NOTIFICATION.—The Secretary of Defense shall 

11 notify the Committees on Appropriations of the House of 

12 Representatives and the Senate of any proposed new 

13 projects or transfers of funds between sub-activity groups 

14 in excess of $15,000,000 using funds appropriated by this 

15 Act under the headings ‘‘Iraq Security Forces Fund’’ and 

16 ‘‘Afghanistan Security Forces Fund’’. 

17 SEC. 1315. None of the funds appropriated or other18 wise made available by this chapter may be obligated or 

19 expended to provide award fees to any defense contractor 

20 contrary to the provisions of section 814 of the National 

21 Defense Authorization Act, FY 2007 (Public Law 109– 

22 364). 

23 SEC. 1316. (a) Not more than 90 percent of the 

24 funds appropriated in this chapter for operation and main25 tenance shall be available for obligation unless and until 


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1 the Secretary of Defense submits to the congressional de2 fense committees a report detailing the use of contracted 

3 services in support of United States military and recon4 struction activities in Iraq and Afghanistan: Provided, 

5 That the Secretary of Defense shall prepare the report in 

6 consultation with the Director of the Office of Manage7 ment and Budget and the Secretary of State: Provided 

8 further, That the report shall provide detailed information 

9 specifying the number of contracts, private contractors, 

10 and contractor personnel used to provide services in fiscal 

11 year 2006, with sub-allocations by major service cat12 egories: Provided further, That the report also shall in13 clude estimates of the number of contracts to be executed 

14 in fiscal year 2007 with the associated number of contrac15 tors and contractor personnel, and provide information re16 garding the Federal department(s) or agency(s) respon17 sible for executing these contracts: Provided further, That 

18 the report shall be submitted to the congressional defense 

19 committees not later than 90 days after enactment of this 

20 Act. 

21 (b) Amounts appropriated for operation and mainte22 nance in this chapter are hereby reduced by $815,000,000 

23 to reflect savings attributable to efficiencies and manage24 ment improvements in the funding of contracts in the mili25 tary departments: Provided, That the Secretary of Defense 


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1 shall allocate this reduction proportionally to each oper2 ation and maintenance account contained in this chapter: 

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

4 fewer than five days prior to making such reductions, no5 tify the congressional defense committees in writing of the 

6 details of such reductions. 

7 SEC. 1317. Section 1477 of title 10, United States 

8 Code, is amended— 

9 (1) in subsection (a), by striking ‘‘A death gra10 tuity’’ and inserting ‘‘Subject to subsection (d), a 

11 death gratuity’’; 

12 (2) by redesignating subsection (d) as sub13 section (e) and, in such subsection, by striking ‘‘If 

14 an eligible survivor dies before he’’ and inserting ‘‘If 

15 a person entitled to all or a portion of a death gra16 tuity under subsection (a) or (d) dies before the per17 son’’; and 

18 (3) by inserting after subsection (c) the fol19 lowing new subsection (d): 

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

21 enactment of this subsection and ending on September 30, 

22 2007, a person covered by section 1475 or 1476 of this 

23 title may designate another person to receive not more 

24 than 50 percent of the amount payable under section 1478 

25 of this title. The designation shall indicate the percentage 


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1 of the amount, to be specified only in 10 percent incre2 ments up to the maximum of 50 percent, that the des3 ignated person may receive. The balance of the amount 

4 of the death gratuity shall be paid to or for the living sur5 vivors of the person concerned in accordance with para6 graphs (1) through (5) of subsection (a).’’. 

7 SEC. 1318. Section 9007 of division A of Public Law 

8 109–289 is amended by striking ‘‘20’’ and inserting 

9 ‘‘170’’. 

10 SEC. 1319. Section 1403(a) of the Floyd D. Spence 

11 National Defense Authorization Act for Fiscal Year 2001 

12 (as enacted into law by Public Law 106–398), as amended 

13 by section 1052 of the National Defense Authorization Act 

14 for Fiscal Year 2006 (Public Law 109–163) and section 

15 1073 of the John Warner National Defense Authorization 

16 Act for Fiscal Year 2007 (Public Law 109–364), is 

17 amended by striking ‘‘September 30, 2007’’ and inserting 

18 ‘‘June 30, 2008’’. 

19 SEC. 1320. There is appropriated to the Secretary of 

20 Defense such sums as may be necessary to implement the 

21 recommendations of the Army Inspector General with re22 gard to trained military attorneys dedicated to rep23 resenting soldiers who are pursuing claims before physical 

24 evaluation boards and earlier in the Army disability eval25 uation system process. 


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1 CHAPTER 4 

2 DEPARTMENT OF ENERGY 

3 ATOMIC ENERGY DEFENSE ACTIVITIES 

4 NATIONAL NUCLEAR SECURITY ADMINISTRATION

5 DEFENSE NUCLEAR NONPROLIFERATION

6 For an additional amount for ‘‘Defense Nuclear Non7 proliferation’’, $150,000,000, to remain available until ex8 pended: Provided, That the amount provided under this 

9 heading is designated as making appropriations for contin10 gency operations directly related to the global war on ter11 rorism, and other unanticipated defense-related oper12 ations, pursuant to section 402 of H. Con. Res. 376 

13 (109th Congress), as made applicable to the House of 

14 Representatives by section 511(a)(4) of H. Res. 6 (110th 

15 Congress). 

16 CHAPTER 5 

17 DEPARTMENT OF HOMELAND SECURITY 

18 DEPARTMENTAL MANAGEMENT AND OPERATIONS

19 ANALYSIS AND OPERATIONS

20 For an additional amount for ‘‘Analysis and Oper21 ations’’, $35,000,000, to remain available until September 

22 30, 2008, to be used for expansion of the State and Local 

23 Fusion Center program: Provided, That the amount pro24 vided under this heading is designated as making appro25 priations for contingency operations directly related to the 


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1 global war on terrorism, and other unanticipated defense2 related operations, pursuant to section 402 of H. Con. 

3 Res. 376 (109th Congress), as made applicable to the 

4 House of Representatives by section 511(a)(4) of H. Res. 

5 6 (110th Congress). 

6 CUSTOMS AND BORDER PROTECTION

7 SALARIES AND EXPENSES

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount for ‘‘Salaries and Ex10 penses’’, $100,000,000, to remain available until Sep11 tember 30, 2008, to be used to increase the number of 

12 inspectors, intelligence analysts and support staff respon13 sible for container security inspections, and for other ef14 forts to improve supply chain security: Provided, That up 

15 to $1,000,000 shall be transferred to ‘‘Salaries and Ex16 penses, Federal Law Enforcement Training Center’’ for 

17 basic training costs: Provided further, That the amount 

18 provided under this heading is designated as making ap19 propriations for contingency operations directly related to 

20 the global war on terrorism, and other unanticipated de21 fense-related operations, pursuant to section 402 of H. 

22 Con. Res. 376 (109th Congress), as made applicable to 

23 the House of Representatives by section 511(a)(4) of H. 

24 Res. 6 (110th Congress). 


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1 AIR AND MARINE INTERDICTION, OPERATIONS, 

2 MAINTENANCE, AND PROCUREMENT

3 For an additional amount for ‘‘Air and Marine Inter4 diction, Operations, Maintenance, and Procurement’’, 

5 $150,000,000, to remain available until September 30, 

6 2008, to be used to complete and expand airwings on the 

7 Northern Border: Provided, That the amount provided 

8 under this heading is designated as making appropriations 

9 for contingency operations directly related to the global 

10 war on terrorism, and other unanticipated defense-related 

11 operations, pursuant to section 402 of H. Con. Res. 376 

12 (109th Congress), as made applicable to the House of 

13 Representatives by section 511(a)(4) of H. Res. 6 (110th 

14 Congress). 

15 TRANSPORTATION SECURITY ADMINISTRATION

16 AVIATION SECURITY

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

18 $1,250,000,000, to remain available until expended: Pro19 vided, That of the total amount provided under this head20 ing, $1,000,000,000 shall be for explosive detection pro21 curement and installation, $90,000,000 shall be for expan22 sion of checkpoint explosive detection pilot systems, and 

23 $160,000,000 shall be for screening of cargo carried on 

24 passenger aircraft: Provided further, That the amount pro25 vided under this heading is designated as making appro26 priations for contingency operations directly related to the 


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1 global war on terrorism, and other unanticipated defense2 related operations, pursuant to section 402 of H. Con. 

3 Res. 376 (109th Congress), as made applicable to the 

4 House of Representatives by section 511(a)(4) of H. Res. 

5 6 (110th Congress). 

6 NATIONAL PROTECTION AND PROGRAMS

7 INFRASTRUCTURE PROTECTION AND INFORMATION

8 SECURITY

9 For an additional amount for ‘‘Infrastructure Protec10 tion and Information Security’’, $25,000,000, to remain 

11 available until September 30, 2008, to be used for develop12 ment of State and local interoperability plans in conjunc13 tion with the SAFECOM program office: Provided, That 

14 the amount provided under this heading is designated as 

15 making appropriations for contingency operations directly 

16 related to the global war on terrorism, and other unantici17 pated defense-related operations, pursuant to section 402 

18 of H. Con. Res. 376 (109th Congress), as made applicable 

19 to the House of Representatives by section 511(a)(4) of 

20 H. Res. 6 (110th Congress). 

21 FEDERAL EMERGENCY MANAGEMENT AGENCY

22 SALARIES AND EXPENSES

23 For salaries and expenses of the Federal Emergency 

24 Management Agency, $25,000,000, to remain available 

25 until September 30, 2008, for regional disaster commuVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 nications capability and support for mutual aid agree2 ments: Provided, That the amount provided under this 

3 heading is designated as making appropriations for contin4 gency operations directly related to the global war on ter5 rorism, and other unanticipated defense-related oper6 ations, pursuant to section 402 of H. Con. Res. 376 

7 (109th Congress), as made applicable to the House of 

8 Representatives by section 511(a)(4) of H. Res. 6 (110th 

9 Congress). 

10 STATE AND LOCAL PROGRAMS

11 For an additional amount for ‘‘State and Local Pro12 grams’’, $415,000,000, of which $190,000,000 shall be for 

13 port security grants and $225,000,000 shall be for inter14 city rail passenger transportation, freight rail, and transit 

15 security grants: Provided, That the amount provided 

16 under this heading is designated as making appropriations 

17 for contingency operations directly related to the global 

18 war on terrorism, and other unanticipated defense-related 

19 operations, pursuant to section 402 of H. Con. Res. 376 

20 (109th Congress), as made applicable to the House of 

21 Representatives by section 511(a)(4) of H. Res. 6 (110th 

22 Congress). 

23 EMERGENCY MANAGEMENT PERFORMANCE GRANTS

24 For an additional amount for ‘‘Emergency Manage25 ment Performance Grants’’, $100,000,000: Provided, 

26 That the amount provided under this heading is desVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 ignated as making appropriations for contingency oper2 ations directly related to the global war on terrorism, and 

3 other unanticipated defense-related operations, pursuant 

4 to section 402 of H. Con. Res. 376 (109th Congress), as 

5 made applicable to the House of Representatives by sec6 tion 511(a)(4) of H. Res. 6 (110th Congress). 

7 DOMESTIC NUCLEAR DETECTION OFFICE

8 SYSTEMS ACQUISITION

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

10 $400,000,000, to remain available until expended: Pro11 vided, That the amount provided under this heading is 

12 designated as making appropriations for contingency oper13 ations directly related to the global war on terrorism, and 

14 other unanticipated defense-related operations, pursuant 

15 to section 402 of H. Con. Res. 376 (109th Congress), as 

16 made applicable to the House of Representatives by sec17 tion 511(a)(4) of H. Res. 6 (110th Congress). 

18 GENERAL PROVISIONS—THIS CHAPTER 

19 SEC. 1501. (a) LIMITATION ON USE OF FUNDS.— 

20 (1) IN GENERAL.—None of the funds made 

21 available in this or any other Act shall be used by 

22 the Secretary of Homeland Security to approve a 

23 site security plan for a chemical facility, unless the 

24 facility meets or exceeds security standards or re25 quirements established for such a facility by the 


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1 State or local government for the area where the fa2 cility is located. 

3 (2) DEFINITIONS.—In this subsection, each of 

4 the terms ‘‘site security plan’’ and ‘‘chemical facil5 ity’’ has the meaning that the term has in section 

6 550 of the Department of Homeland Security Ap7 propriations Act, 2007 (Public Law 109–295; 120 

8 Stat. 1388). 

9 (b) AMENDMENTS.—Section 550 of the Department 

10 of Homeland Security Appropriations Act, 2007 (Public 

11 Law 109–295; 120 Stat. 1388) is amended— 

12 (1) in subsection (a), by striking ‘‘the Secretary 

13 may not disapprove a site security plan submitted 

14 under this section based on the presence or absence 

15 of a particular security measure, but’’; 

16 (2) in subsection (c), by striking ‘‘consistent 

17 with similar’’ and inserting ‘‘identical to the protec18 tions given’’; 

19 (3) in subsection (c), by striking ‘‘, site security 

20 plans, and other information submitted to or ob21 tained by the Secretary under this section, and re22 lated vulnerability or security information, shall be 

23 treated as if the information were classified mate24 rial’’ and inserting ‘‘and site security plans shall be 

25 treated as sensitive security information (as that 


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1 term is used in section 1520.5 of title 49, Code of 

2 Federal Regulations)’’; and 

3 (4) in subsection (d), by striking ‘‘: Provided, 

4 That nothing in this section confers upon any person 

5 except the Secretary a right of action against an 

6 owner or operator of a chemical facility to enforce 

7 any provision of this section’’. 

8 CHAPTER 6 

9 LEGISLATIVE BRANCH 

10 HOUSE OF REPRESENTATIVES 

11 SALARIES AND EXPENSES

12 For an additional amount for ‘‘Salaries and Ex13 penses’’, $6,437,000, as follows: 

14 ALLOWANCES AND EXPENSES

15 For an additional amount for allowances and ex16 penses as authorized by House resolution or law, 

17 $6,437,000 for business continuity and disaster recovery, 

18 to remain available until expended: Provided, That the 

19 amount provided under this heading is designated as mak20 ing appropriations for contingency operations directly re21 lated to the global war on terrorism, and other unantici22 pated defense-related operations, pursuant to section 402 

23 of H. Con. Res. 376 (109th Congress), as made applicable 

24 to the House of Representatives by section 511(a)(4) of 

25 H. Res. 6 (110th Congress). 


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1 CHAPTER 7 

2 DEPARTMENT OF DEFENSE 

3 MILITARY CONSTRUCTION, ARMY

4 For an additional amount for ‘‘Military Construction, 

5 Army’’, $1,329,240,000, to remain available until Sep6 tember 30, 2008: Provided, That notwithstanding any 

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

8 expended to carry out planning and design and military 

9 construction projects not otherwise authorized by law: 

10 Provided further, That of the funds provided under this 

11 heading, not to exceed $168,200,000 shall be available for 

12 study, planning, design, and architect and engineer serv13 ices: Provided further, That of the funds provided under 

14 this heading, $25,600,000 shall not be obligated or ex15 pended until the Secretary of Defense submits an updated 

16 1391 form that addresses the actual housing requirement 

17 for the Consolidated Compound in Kabul, Afghanistan, to 

18 the Committees on Appropriations of the House of Rep19 resentatives and Senate and an approval is issued: Pro20 vided further, That of the funds made available under this 

21 heading, $369,690,000 shall not be obligated or expended 

22 until the Secretary of Defense submits a detailed report 

23 explaining how military road construction is coordinated 

24 with NATO and coalition nations: Provided further, That 

25 of the funds made available under this heading, 


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1 $401,700,000 shall not be obligated or expended until the 

2 Secretary of Defense submits a detailed spending plan, in3 cluding a 1391 form for each project, to support Army 

4 end-strength growth to the Committees on Appropriations 

5 of the House of Representatives and Senate and an ap6 proval is issued: Provided further, That the amount pro7 vided under this heading is designated as making appro8 priations for contingency operations directly related to the 

9 global war on terrorism, and other unanticipated defense10 related operations, pursuant to section 402 of H. Con. 

11 Res. 376 (109th Congress), as made applicable to the 

12 House of Representatives by section 511(a)(4) of H. Res. 

13 6 (110th Congress). 

14 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

15 For an additional amount for ‘‘Military Construction, 

16 Navy and Marine Corps’’, $389,300,000, to remain avail17 able until September 30, 2008: Provided, That notwith18 standing any other provision of law, such funds may be 

19 obligated and expended to carry out planning and design 

20 and military construction projects not otherwise author21 ized by law: Provided further, That of the funds provided 

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

23 available for study, planning, design, and architect and en24 gineer services: Provided further, That of the funds made 

25 available under this heading, $200,000,000 shall not be 


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1 obligated or expended until the Secretary of Defense sub2 mits a detailed spending plan, including a 1391 form, for 

3 each project to support Marine Corps end-strength growth 

4 to the Committees on Appropriations of the House of Rep5 resentatives and Senate and an approval is issued: Pro6 vided further, That the amount provided under this head7 ing is designated as making appropriations for contin8 gency operations directly related to the global war on ter9 rorism, and other unanticipated defense-related oper10 ations, pursuant to section 402 of H. Con. Res. 376 

11 (109th Congress), as made applicable to the House of 

12 Representatives by section 511(a)(4) of H. Res. 6 (110th 

13 Congress). 

14 MILITARY CONSTRUCTION, AIR FORCE

15 For an additional amount for ‘‘Military Construction, 

16 Air Force’’, $60,200,000, to remain available until Sep17 tember 30, 2008: Provided, That notwithstanding any 

18 other provision of law, such funds may be obligated and 

19 expended to carry out planning and design and military 

20 construction projects not otherwise authorized by law: 

21 Provided further, That of the funds provided under this 

22 heading, not to exceed $3,900,000 shall be available for 

23 study, planning, design, and architect and engineer serv24 ices: Provided further, That the amount provided under 

25 this heading is designated as making appropriations for 


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1 contingency operations directly related to the global war 

2 on terrorism, and other unanticipated defense-related op3 erations, pursuant to section 402 of H. Con. Res. 376 

4 (109th Congress), as made applicable to the House of 

5 Representatives by section 511(a)(4) of H. Res. 6 (110th 

6 Congress). 

7 DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT

8 2005 

9 For deposit into the Department of Defense Base 

10 Closure Account 2005, established by section 2906A(a)(1) 

11 of the Defense Base Closure and Realignment Act of 1990 

12 (10 U.S.C. 2687 note), $3,136,802,000, to remain avail13 able until expended: Provided, That within 30 days of the 

14 enactment of this Act, the Secretary of Defense shall sub15 mit a detailed spending plan to the Committees on Appro16 priations of the House of Representatives and Senate: 

17 Provided further, That the amount provided under this 

18 heading is designated as making appropriations for contin19 gency operations directly related to the global war on ter20 rorism, and other unanticipated defense-related oper21 ations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 DEPARTMENT OF VETERANS AFFAIRS 

2 VETERANS BENEFITS ADMINISTRATION

3 COMPENSATION AND PENSIONS

4 For an additional amount for ‘‘Compensation and 

5 Pensions’’, $20,000,000, to remain available until ex6 pended, for a pilot program for disability examinations as 

7 authorized by law (38 U.S.C. 5101 note). 

8 VETERANS HEALTH ADMINISTRATION

9 MEDICAL SERVICES

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

11 $414,982,000, to remain available until expended, of 

12 which $30,000,000 shall be for a new Level I comprehen13 sive polytrauma center; $56,000,000 shall be for pros14 thetics; $100,000,000 shall be for contract mental health 

15 care when appointment waiting times exceed 30 days; and 

16 $228,982,000 shall be for treatment of veterans of the 

17 global war on terror: Provided, That the amount provided 

18 under this heading is designated as making appropriations 

19 for contingency operations directly related to the global 

20 war on terrorism, and other unanticipated defense-related 

21 operations, pursuant to section 402 of H. Con. Res. 376 

22 (109th Congress), as made applicable to the House of 

23 Representatives by section 511(a)(4) of H. Res. 6 (110th 

24 Congress). 


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1 MEDICAL ADMINISTRATION

2 For an additional amount for ‘‘Medical Administra3 tion’’, $256,300,000, to remain available until expended, 

4 of which $6,300,000 shall be used for polytrauma support 

5 clinic teams for case management: Provided, That the 

6 amount provided under this heading is designated as mak7 ing appropriations for contingency operations directly re8 lated to the global war on terrorism, and other unantici9 pated defense-related operations, pursuant to section 402 

10 of H. Con. Res. 376 (109th Congress), as made applicable 

11 to the House of Representatives by section 511(a)(4) of 

12 H. Res. 6 (110th Congress). 

13 MEDICAL FACILITIES

14 For an additional amount for ‘‘Medical Facilities’’, 

15 $595,000,000, to remain available until expended, of 

16 which $45,000,000 shall be used for upgrades to 

17 polytrauma care centers; and $550,000,000 shall be for 

18 non-recurring maintenance as identified in the Depart19 ment of Veterans Affairs Facility Condition Assessment 

20 report: Provided, That the amount provided under this 

21 heading is designated as making appropriations for contin22 gency operations directly related to the global war on ter23 rorism, and other unanticipated defense-related oper24 ations, pursuant to section 402 of H. Con. Res. 376 

25 (109th Congress), as made applicable to the House of 


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1 Representatives by section 511(a)(4) of H. Res. 6 (110th 

2 Congress). 

3 MEDICAL AND PROSTHETIC RESEARCH

4 For an additional amount for ‘‘Medical and Pros5 thetic Research’’, $35,000,000, to remain available until 

6 expended, which shall be used for research initiatives re7 lated to Operation Iraqi Freedom/Operation Enduring 

8 Freedom survivors: Provided, That the amount provided 

9 under this heading is designated as making appropriations 

10 for contingency operations directly related to the global 

11 war on terrorism, and other unanticipated defense-related 

12 operations, pursuant to section 402 of H. Con. Res. 376 

13 (109th Congress), as made applicable to the House of 

14 Representatives by section 511(a)(4) of H. Res. 6 (110th 

15 Congress). 

16 DEPARTMENTAL ADMINISTRATION

17 GENERAL OPERATING EXPENSES

18 For an additional amount for ‘‘General Operating 

19 Expenses’’, $62,000,000, to remain available until ex20 pended, of which $1,250,000 shall be for digitization of 

21 records and $60,750,000 shall be for expenses related to 

22 hiring and training new claims processing personnel: Pro23 vided, That the amount provided under this heading is 

24 designated as making appropriations for contingency oper25 ations directly related to the global war on terrorism, and 

26 other unanticipated defense-related operations, pursuant 


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1 to section 402 of H. Con. Res. 376 (109th Congress), as 

2 made applicable to the House of Representatives by sec3 tion 511(a)(4) of H. Res. 6 (110th Congress). 

4 INFORMATION TECHNOLOGY SYSTEMS

5 For an additional amount for ‘‘Information Tech6 nology Systems’’, $35,000,000, to remain available until 

7 expended, for system development upgrades to address 

8 global war on terror requirements: Provided, That the 

9 amount provided under this heading is designated as mak10 ing appropriations for contingency operations directly re11 lated to the global war on terrorism, and other unantici12 pated defense-related operations, pursuant to section 402 

13 of H. Con. Res. 376 (109th Congress), as made applicable 

14 to the House of Representatives by section 511(a)(4) of 

15 H. Res. 6 (110th Congress). 

16 CONSTRUCTION, MAJOR PROJECTS

17 For an additional amount for ‘‘Construction, Major 

18 Projects’’, $23,800,000, to remain available until ex19 pended, which shall be for the authorized completion of 

20 a spinal cord injury center: Provided, That the amount 

21 provided under this heading is designated as making ap22 propriations for contingency operations directly related to 

23 the global war on terrorism, and other unanticipated de24 fense-related operations, pursuant to section 402 of H. 

25 Con. Res. 376 (109th Congress), as made applicable to 


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1 the House of Representatives by section 511(a)(4) of H. 

2 Res. 6 (110th Congress). 

3 CONSTRUCTION, MINOR PROJECTS

4 For an additional amount for ‘‘Construction, Minor 

5 Projects’’, $260,000,000, to remain available until ex6 pended: Provided, That the amount provided under this 

7 heading is designated as making appropriations for contin8 gency operations directly related to the global war on ter9 rorism, and other unanticipated defense-related oper10 ations, pursuant to section 402 of H. Con. Res. 376 

11 (109th Congress), as made applicable to the House of 

12 Representatives by section 511(a)(4) of H. Res. 6 (110th 

13 Congress). 

14 CHAPTER 8 

15 DEPARTMENT OF STATE 

16 ADMINISTRATION OF FOREIGN AFFAIRS

17 DIPLOMATIC AND CONSULAR PROGRAMS

18 (INCLUDING TRANSFER OF FUNDS)

19 For an additional amount for ‘‘Diplomatic and Con20 sular Programs’’, $966,954,000, to remain available until 

21 September 30, 2008, of which $102,155,000 for World 

22 Wide Security Upgrades is available until expended: Pro23 vided, That of the amount available under this heading, 

24 $258,000 shall be transferred to, and merged with, funds 

25 available in fiscal year 2007 for expenses for the United 

26 States Commission on International Religious Freedom: 


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1 Provided further, That $395,000,000 of the amount avail2 able for Iraq operations shall not be obligated until the 

3 Committee on Appropriations of the House of Representa4 tives receives and approves a detailed plan for expenditure, 

5 prepared by the Secretary of State, and submitted within 

6 60 days after the date of enactment of this Act: Provided 

7 further, That up to $50,000,000 may be made available 

8 to establish and maintain a civilian reserve corps: Provided 

9 further, That none of the funds for a civilian reserve corps 

10 may be obligated without specific authorization in a subse11 quent Act of Congress: Provided further, That the amount 

12 provided under this heading is designated as making ap13 propriations for contingency operations directly related to 

14 the global war on terrorism, and other unanticipated de15 fense-related operations, pursuant to section 402 of H. 

16 Con. Res. 376 (109th Congress), as made applicable to 

17 the House of Representatives by section 511(a)(4) of H. 

18 Res. 6 (110th Congress). 

19 OFFICE OF THE INSPECTOR GENERAL

20 (INCLUDING TRANSFER OF FUNDS)

21 For an additional amount for ‘‘Office of Inspector 

22 General’’, $46,800,000, to remain available until Decem23 ber 31, 2008: Provided, That $45,500,000 shall be trans24 ferred to the Special Inspector General for Iraq Recon25 struction for reconstruction oversight: Provided further, 

26 That the amount provided under this heading is desVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 ignated as making appropriations for contingency oper2 ations directly related to the global war on terrorism, and 

3 other unanticipated defense-related operations, pursuant 

4 to section 402 of H. Con. Res. 376 (109th Congress), as 

5 made applicable to the House of Representatives by sec6 tion 511(a)(4) of H. Res. 6 (110th Congress). 

7 EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

8 For an additional amount for ‘‘Educational and Cul9 tural Exchange Programs’’, $20,000,000, to remain avail10 able until expended: Provided, That the amount provided 

11 under this heading is designated as making appropriations 

12 for contingency operations directly related to the global 

13 war on terrorism, and other unanticipated defense-related 

14 operations, pursuant to section 402 of H. Con. Res. 376 

15 (109th Congress), as made applicable to the House of 

16 Representatives by section 511(a)(4) of H. Res. 6 (110th 

17 Congress). 

18 INTERNATIONAL ORGANIZATIONS

19 CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING

20 ACTIVITIES

21 For an additional amount for ‘‘Contributions for 

22 International Peacekeeping Activities’’, $288,000,000, to 

23 remain available until September 30, 2008: Provided, 

24 That the amount provided under this heading is des25 ignated as making appropriations for contingency operVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 ations directly related to the global war on terrorism, and 

2 other unanticipated defense-related operations, pursuant 

3 to section 402 of H. Con. Res. 376 (109th Congress), as 

4 made applicable to the House of Representatives by sec5 tion 511(a)(4) of H. Res. 6 (110th Congress). 

6 RELATED AGENCY 

7 BROADCASTING BOARD OF GOVERNORS

8 INTERNATIONAL BROADCASTING OPERATIONS

9 For an additional amount for ‘‘International Broad10 casting Operations’’, for activities related to broadcasting 

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

12 September 30, 2008: Provided, That the amount provided 

13 under this heading is designated as making appropriations 

14 for contingency operations directly related to the global 

15 war on terrorism, and other unanticipated defense-related 

16 operations, pursuant to section 402 of H. Con. Res. 376 

17 (109th Congress), as made applicable to the House of 

18 Representatives by section 511(a)(4) of H. Res. 6 (110th 

19 Congress). 

20 BILATERAL ECONOMIC ASSISTANCE 

21 FUNDS APPROPRIATED TO THE PRESIDENT

22 UNITED STATES AGENCY FOR INTERNATIONAL

23 DEVELOPMENT

24 CHILD SURVIVAL AND HEALTH PROGRAMS FUND

25 For an additional amount for ‘‘Child Survival and 

26 Health Programs Fund’’, $161,000,000, to remain availVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 able until September 30, 2008: Provided, That the amount 

2 provided under this heading is designated as making ap3 propriations for contingency operations directly related to 

4 the global war on terrorism, and other unanticipated de5 fense-related operations, pursuant to section 402 of H. 

6 Con. Res. 376 (109th Congress), as made applicable to 

7 the House of Representatives by section 511(a)(4) of H. 

8 Res. 6 (110th Congress). 

9 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

10 For an additional amount for ‘‘International Disaster 

11 and Famine Assistance’’, $135,000,000, to remain avail12 able until expended: Provided, That the amount provided 

13 under this heading is designated as making appropriations 

14 for contingency operations directly related to the global 

15 war on terrorism, and other unanticipated defense-related 

16 operations, pursuant to section 402 of H. Con. Res. 376 

17 (109th Congress), as made applicable to the House of 

18 Representatives by section 511(a)(4) of H. Res. 6 (110th 

19 Congress). 

20 OPERATING EXPENSES OF THE UNITED STATES AGENCY

21 FOR INTERNATIONAL DEVELOPMENT

22 For an additional amount for ‘‘Operating Expenses 

23 of the United States Agency for International Develop24 ment’’, $10,700,000, to remain available until September 

25 30, 2008: Provided, That the amount provided under this 

26 heading is designated as making appropriations for continVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 gency operations directly related to the global war on ter2 rorism, and other unanticipated defense-related oper3 ations, pursuant to section 402 of H. Con. Res. 376 

4 (109th Congress), as made applicable to the House of 

5 Representatives by section 511(a)(4) of H. Res. 6 (110th 

6 Congress). 

7 OPERATING EXPENSES OF THE UNITED STATES AGENCY

8 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN9 SPECTOR GENERAL

10 For an additional amount for ‘‘Operating Expenses 

11 of the United States Agency for International Develop12 ment Office of Inspector General’’, $3,500,000, to remain 

13 available until September 30, 2008: Provided, That the 

14 amount provided under this heading is designated as mak15 ing appropriations for contingency operations directly re16 lated to the global war on terrorism, and other unantici17 pated defense-related operations, pursuant to section 402 

18 of H. Con. Res. 376 (109th Congress), as made applicable 

19 to the House of Representatives by section 511(a)(4) of 

20 H. Res. 6 (110th Congress). 

21 OTHER BILATERAL ECONOMIC ASSISTANCE

22 ECONOMIC SUPPORT FUND

23 For an additional amount for ‘‘Economic Support 

24 Fund’’, $2,953,000,000, to remain available until Sep25 tember 30, 2008: Provided, That the amount provided 

26 under this heading is designated as making appropriations 


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1 for contingency operations directly related to the global 

2 war on terrorism, and other unanticipated defense-related 

3 operations, pursuant to section 402 of H. Con. Res. 376 

4 (109th Congress), as made applicable to the House of 

5 Representatives by section 511(a)(4) of H. Res. 6 (110th 

6 Congress). 

7 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

8 STATES

9 For an additional amount for ‘‘Assistance for East10 ern Europe and the Baltic States’’, $239,000,000, to re11 main available until September 30, 2008: Provided, That 

12 the amount provided under this heading is designated as 

13 making appropriations for contingency operations directly 

14 related to the global war on terrorism, and other unantici15 pated defense-related operations, pursuant to section 402 

16 of H. Con. Res. 376 (109th Congress), as made applicable 

17 to the House of Representatives by section 511(a)(4) of 

18 H. Res. 6 (110th Congress). 

19 DEPARTMENT OF STATE

20 INTERNATIONAL NARCOTICS CONTROL AND LAW

21 ENFORCEMENT

22 For an additional amount for ‘‘International Nar23 cotics Control and Law Enforcement’’, $334,500,000, to 

24 remain available until September 30, 2008: Provided, 

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1 ations directly related to the global war on terrorism, and 

2 other unanticipated defense-related operations, pursuant 

3 to section 402 of H. Con. Res. 376 (109th Congress), as 

4 made applicable to the House of Representatives by sec5 tion 511(a)(4) of H. Res. 6 (110th Congress). 

6 MIGRATION AND REFUGEE ASSISTANCE

7 For an additional amount for ‘‘Migration and Ref8 ugee Assistance’’, $111,500,000, to remain available until 

9 September 30, 2008: Provided, That the amount provided 

10 under this heading is designated as making appropriations 

11 for contingency operations directly related to the global 

12 war on terrorism, and other unanticipated defense-related 

13 operations, pursuant to section 402 of H. Con. Res. 376 

14 (109th Congress), as made applicable to the House of 

15 Representatives by section 511(a)(4) of H. Res. 6 (110th 

16 Congress). 

17 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

18 ASSISTANCE FUND

19 For an additional amount for ‘‘United States Emer20 gency Refugee and Migration Assistance Fund’’, 

21 $35,000,000, to remain available until expended: Pro22 vided, That the amount provided under this heading is 

23 designated as making appropriations for contingency oper24 ations directly related to the global war on terrorism, and 

25 other unanticipated defense-related operations, pursuant 

26 to section 402 of H. Con. Res. 376 (109th Congress), as 


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1 made applicable to the House of Representatives by sec2 tion 511(a)(4) of H. Res. 6 (110th Congress). 

3 NONPROLIFERATION, ANTITERRORISM, DEMINING AND

4 RELATED PROGRAMS

5 For an additional amount for ‘‘Nonproliferation, 

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

7 $87,500,000, to remain available until September 30, 

8 2008: Provided, That the amount provided under this 

9 heading is designated as making appropriations for contin10 gency operations directly related to the global war on ter11 rorism, and other unanticipated defense-related oper12 ations, pursuant to section 402 of H. Con. Res. 376 

13 (109th Congress), as made applicable to the House of 

14 Representatives by section 511(a)(4) of H. Res. 6 (110th 

15 Congress). 

16 DEPARTMENT OF THE TREASURY

17 INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

18 For an additional amount for ‘‘International Affairs 

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

20 until September 30, 2008: Provided, That the amount pro21 vided under this heading is designated as making appro22 priations for contingency operations directly related to the 

23 global war on terrorism, and other unanticipated defense24 related operations, pursuant to section 402 of H. Con. 

25 Res. 376 (109th Congress), as made applicable to the 


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1 House of Representatives by section 511(a)(4) of H. Res. 

2 6 (110th Congress). 

3 MILITARY ASSISTANCE 

4 FUNDS APPROPRIATED TO THE PRESIDENT

5 FOREIGN MILITARY FINANCING PROGRAM

6 For an additional amount for ‘‘Foreign Military Fi7 nancing Program’’, $260,000,000: Provided, That the 

8 amount provided under this heading is designated as mak9 ing appropriations for contingency operations directly re10 lated to the global war on terrorism, and other unantici11 pated defense-related operations, pursuant to section 402 

12 of H. Con. Res. 376 (109th Congress), as made applicable 

13 to the House of Representatives by section 511(a)(4) of 

14 H. Res. 6 (110th Congress). 

15 PEACEKEEPING OPERATIONS

16 For an additional amount for ‘‘Peacekeeping Oper17 ations’’, $225,000,000, to remain available until Sep18 tember 30, 2008: Provided, That the amount provided 

19 under this heading is designated as making appropriations 

20 for contingency operations directly related to the global 

21 war on terrorism, and other unanticipated defense-related 

22 operations, pursuant to section 402 of H. Con. Res. 376 

23 (109th Congress), as made applicable to the House of 

24 Representatives by section 511(a)(4) of H. Res. 6 (110th 

25 Congress). 


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1 GENERAL PROVISIONS—THIS CHAPTER 

2 SEC. 1801. Section 3001(o)(1)(B) of the Emergency 

3 Supplemental Appropriations Act for Defense and for the 

4 Reconstruction of Iraq and Afghanistan, 2004 (Public 

5 Law 108–106; 117 Stat. 1238; 5 U.S.C. App., note to sec6 tion 8G of Public Law 95–452) is amended by striking 

7 ‘‘fiscal year 2006’’ and inserting ‘‘fiscal years 2006, 2007, 

8 or 2008’’. 

9 SEC. 1802. (a) LIMITATION ON ECONOMIC SUPPORT

10 FUND ASSISTANCE FOR LEBANON.—None of the funds 

11 made available in this Act under the heading ‘‘ECO12 NOMIC SUPPORT FUND’’ for cash transfer assistance 

13 for the Government of Lebanon may be made available 

14 for obligation until the Secretary of State reports to the 

15 Committees on Appropriations of the House of Represent16 atives and the Senate on Lebanon’s economic reform plan 

17 and on the specific conditions and verifiable benchmarks 

18 that have been agreed upon by the United States and the 

19 Government of Lebanon pursuant to the Memorandum of 

20 Understanding on cash transfer assistance for Lebanon. 

21 (b) LIMITATION ON FOREIGN MILITARY FINANCING

22 PROGRAM AND INTERNATIONAL NARCOTICS CONTROL

23 AND LAW ENFORCEMENT ASSISTANCE FOR LEBANON.— 

24 None of the funds made available in this Act under the 

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1 GRAM’’ or ‘‘INTERNATIONAL NARCOTICS CON2 TROL AND LAW ENFORCEMENT’’ for military or po3 lice assistance to Lebanon may be made available for obli4 gation until the Secretary of State submits to the Commit5 tees on Appropriations of the House of Representatives 

6 and the Senate a report on procedures established to de7 termine eligibility of members and units of the armed 

8 forces and police forces of Lebanon to participate in 

9 United States training and assistance programs and on 

10 the end use monitoring of all equipment provided under 

11 such programs to the Lebanese armed forces and police 

12 forces. 

13 (c) REPORT REQUIRED.—Not later than 45 days 

14 after the date of the enactment of this Act, the Secretary 

15 of State shall submit to the Committees on Appropriations 

16 of the House of Representatives and the Senate a report 

17 on the Government of Lebanon’s actions to implement sec18 tion 14 of United Nations Security Council Resolution 

19 1701 (August 11, 2006). 

20 CHAPTER 9 

21 GENERAL PROVISIONS—THIS TITLE 

22 SEC. 1901. (a) Congress finds that it is Defense De23 partment policy that units should not be deployed for com24 bat unless they are rated ‘‘fully mission capable’’. 


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1 (b) None of the funds appropriated or otherwise 

2 made available in this or any other Act may be used to 

3 deploy any unit of the Armed Forces to Iraq unless the 

4 chief of the military department concerned has certified 

5 in writing to the Committees on Appropriations and the 

6 Committees on Armed Services at least 15 days in advance 

7 of the deployment that the unit is fully mission capable. 

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

9 mission capable’’ means capable of performing assigned 

10 mission essential tasks to prescribed standards under the 

11 conditions expected in the theater of operations, consistent 

12 with the guidelines set forth in the Department of Defense 

13 readiness reporting system. 

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

15 Committees on Appropriations and the Committees on 

16 Armed Services that the deployment to Iraq of a unit that 

17 is not assessed fully mission capable is required for rea18 sons of national security and by submitting along with the 

19 certification a report in classified and unclassified form 

20 detailing the particular reason or reasons why the unit’s 

21 deployment is necessary despite the chief of the military 

22 department’s assessment that the unit is not fully mission 

23 capable, may waive the limitation prescribed in subsection 

24 (b) on a unit-by-unit basis. 


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1 SEC. 1902. (a) Congress finds that it is Defense De2 partment policy that Army, Army Reserve, and National 

3 Guard units should not be deployed for combat beyond 

4 365 days or that Marine Corps and Marine Corps Reserve 

5 units should not be deployed for combat beyond 210 days. 

6 (b) None of the funds appropriated or otherwise 

7 made available in this or any other Act may be obligated 

8 or expended to initiate the development of, continue the 

9 development of, or execute any order that has the effect 

10 of extending the deployment for Operation Iraqi Freedom 

11 of— 

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

13 Army National Guard beyond 365 days; or 

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

15 Corps Reserve beyond 210 days. 

16 (c) The limitation prescribed in subsection (b) shall 

17 not be construed to require force levels in Iraq to be de18 creased below the total United States force levels in Iraq 

19 prior to January 10, 2007. 

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

21 Committees on Appropriations and the Committees on 

22 Armed Services that the extension of a unit’s deployment 

23 in Iraq beyond the periods specified in subsection (b) is 

24 required for reasons of national security and by submit25 ting along with the certification a report in classified and 


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1 unclassified form detailing the particular reason or rea2 sons why the unit’s extended deployment is necessary, may 

3 waive the limitations prescribed in subsection (b) on a 

4 unit-by-unit basis. 

5 SEC. 1903. (a) Congress finds that it is Defense De6 partment policy that Army, Army Reserve, and National 

7 Guard units should not be redeployed for combat if the 

8 unit has been deployed within the previous 365 consecu9 tive days or that Marine Corps and Marine Corps Reserve 

10 units should not be redeployed for combat if the unit has 

11 been deployed within the previous 210 days. 

12 (b) None of the funds appropriated or otherwise 

13 made available in this or any other Act may be obligated 

14 or expended to initiate the development of, continue the 

15 development of, or execute any order that has the effect 

16 of deploying for Operation Iraqi Freedom of— 

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

18 Army National Guard if such unit has been deployed 

19 within the previous 365 consecutive days; or 

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

21 Corps Reserve if such unit has been deployed within 

22 the previous 210 consecutive days. 

23 (c) The limitation prescribed in subsection (b) shall 

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1 creased below the total United States force levels in Iraq 

2 prior to January 10, 2007. 

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

4 Committees on Appropriations and the Committees on 

5 Armed Services that the redeployment of a unit to Iraq 

6 in advance of the periods specified in subsection (b) is re7 quired for reasons of national security and by submitting 

8 along with the certification a report in classified and un9 classified form detailing the particular reason or reasons 

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

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

12 basis. 

13 SEC. 1904. (a) The President shall make and trans14 mit to Congress the following determinations, along with 

15 reports in classified and unclassified form detailing the 

16 basis for each determination, on or before July 1, 2007— 

17 (1) whether the Government of Iraq has given 

18 United States Armed Forces and Iraqi Security 

19 Forces the authority to pursue all extremists, includ20 ing Sunni insurgents and Shiite militias, and is 

21 making substantial progress in delivering necessary 

22 Iraqi Security Forces for Baghdad and protecting 

23 such Forces from political interference; intensifying 

24 efforts to build balanced security forces throughout 

25 Iraq that provide even-handed security for all Iraqis; 


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1 ensuring that Iraq’s political authorities are not un2 dermining or making false accusations against mem3 bers of the Iraqi Security Forces; eliminating militia 

4 control of local security; establishing a strong militia 

5 disarmament program; ensuring fair and just en6 forcement of laws; establishing political, media, eco7 nomic, and service committees in support of the 

8 Baghdad Security Plan; and eradicating safe havens; 

9 (2) whether the Government of Iraq is making 

10 substantial progress in meeting its commitment to 

11 pursue reconciliation initiatives, including enactment 

12 of a hydro-carbon law; adoption of legislation nec13 essary for the conduct of provincial and local elec14 tions; reform of current laws governing the de15 Baathification process; amendment of the Constitu16 tion of Iraq; and allocation of Iraqi revenues for re17 construction projects; and 

18 (3) whether the Government of Iraq and United 

19 States Armed Forces are making substantial 

20 progress in reducing the level of sectarian violence in 

21 Iraq. 

22 (b) On or before October 1, 2007, the President— 

23 (1) shall certify to the Congress that the Gov24 ernment of Iraq has enacted a broadly accepted 

25 hydro-carbon law that equitably shares oil revenues 


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1 among all Iraqis; adopted legislation necessary for 

2 the conduct of provincial and local elections, taken 

3 steps to implement such legislation, and set a sched4 ule to conduct provincial and local elections; re5 formed current laws governing the de-Baathification 

6 process to allow for more equitable treatment of in7 dividuals affected by such laws; amended the Con8 stitution of Iraq consistent with the principles con9 tained in article 137 of such constitution; and allo10 cated and begun expenditure of $10 billion in Iraqi 

11 revenues for reconstruction projects, including deliv12 ery of essential services, on an equitable basis; or 

13 (2) shall report to the Congress that he is un14 able to make such certification. 

15 (c) If in the transmissions to Congress required by 

16 subsection (a) the President determines that any of the 

17 conditions specified in such subsection have not been met, 

18 or if the President is unable to make the certification spec19 ified in subsection (b) by the required date, the Secretary 

20 of Defense shall commence the redeployment of the Armed 

21 Forces from Iraq and complete such redeployment within 

22 180 days. 

23 (d) If the President makes the certification specified 

24 in subsection (b), the Secretary of Defense shall commence 

25 the redeployment of the Armed Forces from Iraq not later 


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1 than March 1, 2008, and complete such redeployment 

2 within 180 days. 

3 (e) Notwithstanding any other provision of law, funds 

4 appropriated or otherwise made available in this or any 

5 other Act are immediately available for obligation and ex6 penditure to plan and execute a safe and orderly redeploy7 ment of the Armed Forces from Iraq, as specified in sub8 sections (c) and (d). 

9 (f) After the conclusion of the 180-day period for re10 deployment specified in subsections (c) and (d), the Sec11 retary of Defense may not deploy or maintain members 

12 of the Armed Forces in Iraq for any purpose other than 

13 the following: 

14 (1) Protecting American diplomatic facilities 

15 and American citizens, including members of the 

16 U.S. Armed Forces. 

17 (2) Serving in roles consistent with customary 

18 diplomatic positions. 

19 (3) Engaging in targeted special actions limited 

20 in duration and scope to killing or capturing mem21 bers of al-Qaeda and other terrorist organizations 

22 with global reach. 

23 (4) Training members of the Iraqi Security 

24 Forces. 


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1 (g) Notwithstanding any other provision of law, 50 

2 percent of the funds appropriated by title I of this Act 

3 for assistance to Iraq under each of the headings ‘‘IRAQ 

4 SECURITY FORCES FUND’’, ‘‘ECONOMIC SUP5 PORT FUND’’, and ‘‘INTERNATIONAL NARCOTICS 

6 CONTROL AND LAW ENFORCEMENT’’ shall be with7 held from obligation until the President has made a certifi8 cation to Congress regarding the matters specified in sub9 section (b)(1). 

10 (h) The requirement to withhold funds from obliga11 tion pursuant to subsection (g) shall not apply with re12 spect to funds made available under the heading ‘‘ECO13 NOMIC SUPPORT FUND’’ for continued support for 

14 the Community Action Program and Community Sta15 bilization Program in Iraq administered by the United 

16 States Agency for International Development or for pro17 grams and activities to promote democracy in Iraq. 

18 SEC. 1905. (a) COORDINATOR FOR IRAQ ASSIST19 ANCE.—Not later than 30 days after the date of the enact20 ment of this Act, the President shall appoint a Coordi21 nator for Iraq Assistance (hereinafter in this section re22 ferred to as the ‘‘Coordinator’’), by and with the advice 

23 and consent of the Senate, who shall report directly to the 

24 President. 


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

2 for— 

3 (1) Developing and implementing an overall 

4 strategy for political, economic, and military assist5 ance for Iraq; 

6 (2) Coordinating and ensuring coherence of 

7 Iraq assistance programs and policy among all de8 partments and agencies of the Government of the 

9 United States that are implementing assistance pro10 grams in Iraq, including the Department of State, 

11 the United States Agency for International Develop12 ment, the Department of Defense, the Department 

13 of the Treasury, and the Department of Justice; 

14 (3) Working with the Government of Iraq in 

15 meeting the benchmarks described in section 

16 1904(b) of this Act in order to ensure Iraq con17 tinues to be eligible to receive United States assist18 ance described in such section; 

19 (4) Coordinating with other donors and inter20 national organizations that are providing assistance 

21 for Iraq; 

22 (5) Ensuring adequate management and ac23 countability of United States assistance programs 

24 for Iraq; 


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1 (6) Resolving policy and program disputes 

2 among departments and agencies of the United 

3 States Government that are implementing assistance 

4 programs in Iraq; and 

5 (7) Coordinating United States assistance pro6 grams with the reconstruction programs funded and 

7 implemented by the Government of Iraq. 

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

9 the rank and status of ambassador. 

10 SEC. 1906. Notwithstanding any other provision of 

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

12 used to close Walter Reed Army Medical Center. 

13 SEC. 1907. CONGRESSIONAL PLEDGE TO FULLY SUPPORT 

14 MEMBERS OF THE ARMED FORCES IN HARM’S 

15 WAY. 

16 (a) FINDINGS.—Congress makes the following find17 ings: 

18 (1) On September 14, 2001, both the Senate 

19 and the House of Representatives passed S.J. Res. 

20 23 of the 107th Congress, which became Public Law 

21 107–40 and authorized the use of military force in 

22 Afghanistan. 

23 (2) On October 10, 2002, the House of Rep24 resentatives passed H.J. Res. 114 of the 107th ConVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 gress, which authorized the use of military force in 

2 Iraq. 

3 (3) After passage by the Senate, H.J. Res. 114 

4 became Public Law 107–243, the Authorization for 

5 Use of Military Force Against Iraq Resolution of 

6 2002. 

7 (4) Members of the United States Armed 

8 Forces have served honorably in their mission to 

9 fight terrorism and protect the greater security of 

10 the United States. 

11 (5) These members of the Armed Forces and 

12 their families have made many sacrifices, in many 

13 cases the ultimate sacrifice, to protect the security 

14 of the United States and the freedom Americans 

15 hold dear. 

16 (6) Congress and the American people are for17 ever grateful to the members of the Armed Forces 

18 for the service they have provided to the United 

19 States. 

20 (b) FAITHFUL SUPPORT OF CONGRESS.—Congress 

21 will fully support the needs of members of the Armed 

22 Forces who the Commander in Chief has deployed in 

23 harm’s way in support of Operation Iraqi Freedom and 

24 Operation Enduring Freedom, and their families. 


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1 SEC. 1908. SENSE OF THE CONGRESS REGARDING PRESI2 DENT AS COMMANDER IN CHIEF AND CON3 GRESSIONAL POWER TO DECLARE WAR. 

4 (a) It is the sense of Congress that Congress acknowl5 edges the President as the Commander in Chief, and that 

6 role is granted solely to the President by article II, section 

7 2, of the United States Constitution. 

8 (b) It is further the sense of Congress that Congress 

9 has the power solely to declare war under article I, section 

10 8, clause 11, of the United States Constitution. 

11 SEC. 1909. SENSE OF CONGRESS REGARDING CONDUCT OF 

12 IRAQ WAR BY COMMANDERS. 

13 It is the sense of Congress that, because the com14 manders of the United States Armed Forces in Iraq have 

15 the training, experience, and first-hand knowledge of the 

16 situation on the ground— 

17 (1) the commanders should be allowed to con18 duct the war and manage the movements of the 

19 troops; and 

20 (2) Congress should remain focused on exe21 cuting its oversight role. 


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1 TITLE II—ADDITIONAL HURRICANE DISASTER 

2 RELIEF AND RECOVERY 

3 CHAPTER 1 

4 DEPARTMENT OF AGRICULTURE 

5 GENERAL PROVISIONS—THIS CHAPTER 

6 SEC. 2101. In addition to the funds provided else7 where in this Act, $25,000,000 is appropriated to the Sec8 retary of Agriculture, to remain available through Sep9 tember 30, 2008, to resume the 2005 Hurricanes Live10 stock Indemnity Program to provide additional compensa11 tion to livestock producers in the geographic area covered 

12 by the natural disaster declaration related to Hurricane 

13 Katrina or Hurricane Rita that suffered losses in excess 

14 of the maximum amount of assistance authorized under 

15 the 2005 Hurricanes Livestock Indemnity Program. The 

16 total amount of assistance that an eligible producer may 

17 receive for such additional livestock losses under this sec18 tion, the 2005 Hurricanes Livestock Indemnity Program, 

19 or any other provision of law may not exceed twice the 

20 maximum amount of assistance authorized under the 2005 

21 Hurricanes Livestock Indemnity Program. The amount 

22 provided under this section is designated as an emergency 

23 requirement pursuant to section 501 of H. Con. Res. 376 

24 (109th Congress), as made applicable to the House of 


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1 Representatives by section 511(a)(4) of H. Res. 6 (110th 

2 Congress). 

3 SEC. 2102. In addition to the funds provided else4 where in the Act, $15,000,000 is appropriated to the Sec5 retary of Agriculture, to remain available through Sep6 tember 30, 2008, for the purpose of providing assistance, 

7 in connection with the provision of emergency financial as8 sistance for losses for 2005 or 2006 crops due to dam9 aging weather or any related condition, to producers with 

10 respect to irrigated crops in the geographic area covered 

11 by the natural disaster declaration related to Hurricane 

12 Katrina or Hurricane Rita that, due to contamination by 

13 saltwater intrusion resulting from Hurricane Katrina or 

14 Hurricane Rita, were planted in 2006 and suffered a loss 

15 or were prevented from being planted. However, the fac16 tors otherwise applicable under section 1480.12(g) of title 

17 7, Code of Federal Regulations, shall not apply to the pro18 vision of such assistance. The amount provided under this 

19 section is designated as an emergency requirement pursu20 ant to section 501 of H. Con. Res. 376 (109th Congress), 

21 as made applicable to the House of Representatives by sec22 tion 511(a)(4) of H. Res. 6 (110th Congress). 

23 SEC. 2103. In addition to the funds provided else24 where in this Act, $100,000,000 is appropriated to the 

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1 tember 30, 2008, to resume the 2005 Hurricanes Citrus 

2 Program to provide additional compensation to citrus pro3 ducers in the geographic area covered by the natural dis4 aster declaration related to Hurricane Katrina or Hurri5 cane Rita that suffered losses in excess of the maximum 

6 amount of assistance authorized under the 2005 Hurri7 canes Citrus Program. The total amount of assistance 

8 that an eligible producer may receive for such additional 

9 citrus losses under this section, the 2005 Hurricanes Cit10 rus Program, or any other provision of law may not exceed 

11 twice the maximum amount of assistance authorized under 

12 the 2005 Hurricanes Citrus Program. The amount pro13 vided under this section is designated as an emergency re14 quirement pursuant to section 501 of H. Con. Res. 376 

15 (109th Congress), as made applicable to the House of 

16 Representatives by section 511(a)(4) of H. Res. 6 (110th 

17 Congress). 

18 CHAPTER 2 

19 DEPARTMENT OF COMMERCE 

20 NATIONAL OCEANIC AND ATMOSPHERIC

21 ADMINISTRATION

22 OPERATIONS, RESEARCH, AND FACILITIES

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

24 and Facilities’’ for necessary expenses related to the con25 sequences of Hurricane Katrina on the shrimp and menVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 haden fishing industries, $120,000,000, to remain avail2 able until September 30, 2008: Provided, That the amount 

3 provided under this heading is designated as an emergency 

4 requirement pursuant to section 501 of H. Con. Res. 376 

5 (109th Congress), as made applicable to the House of 

6 Representatives by section 511(a)(4) of H. Res. 6 (110th 

7 Congress). 

8 NATIONAL AERONAUTICS AND SPACE 

9 ADMINISTRATION 

10 EXPLORATION CAPABILITIES

11 For an additional amount for ‘‘Exploration Capabili12 ties’’ for necessary expenses related to the consequences 

13 of Hurricane Katrina, $35,000,000, to remain available 

14 until September 30, 2009: Provided, That the amount pro15 vided under this heading is designated as an emergency 

16 requirement pursuant to section 501 of H. Con. Res. 376 

17 (109th Congress), as made applicable to the House of 

18 Representatives by section 511(a)(4) of H. Res. 6 (110th 

19 Congress). 

20 GENERAL PROVISION—THIS CHAPTER 

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

22 available to the National Aeronautics and Space Adminis23 tration in Public Law 109–148 and Public Law 109–234 

24 for emergency hurricane and other natural disaster-re25 lated expenses may be used to reimburse hurricane-related 


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1 costs incurred by NASA in fiscal year 2005: Provided, 

2 That the amount provided under this heading is des3 ignated as an emergency requirement pursuant to section 

4 501 of H. Con. Res. 376 (109th Congress), as made appli5 cable to the House of Representatives by section 511(a)(4) 

6 of H. Res. 6 (110th Congress). 

7 CHAPTER 3 

8 DEPARTMENT OF DEFENSE—CIVIL 

9 DEPARTMENT OF THE ARMY 

10 CORPS OF ENGINEERS—CIVIL

11 CONSTRUCTION

12 For an additional amount for ‘‘Construction’’ to re13 duce the risk of hurricane and storm damage to the Mis14 sissippi coastal area, $37,080,000, to remain available 

15 until expended: Provided, That such sums shall be subject 

16 to authorization: Provided further, That the amount pro17 vided under this heading is designated as an emergency 

18 requirement pursuant to section 501 of H. Con. Res. 376 

19 (109th Congress), as made applicable to the House of 

20 Representatives by section 511(a)(4) of H. Res. 6 (110th 

21 Congress). 

22 FLOOD CONTROL AND COASTAL EMERGENCIES

23 For an additional amount for ‘‘Flood Control and 

24 Coastal Emergencies’’, as authorized by section 5 of the 

25 Act of August 18, 1941 (33 U.S.C. 701n), for necessary 

26 expenses related to the consequences of Hurricane 


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1 Katrina, $1,300,000,000, to remain available until ex2 pended: Provided, That this amount shall be used to re3 store the flood damage reduction and hurricane and storm 

4 damage reduction projects, and related works, to provide 

5 the level of protection for which they were designed, and 

6 to accelerate completion of unconstructed portions of au7 thorized hurricane, storm damage reduction and flood con8 trol projects in the greater New Orleans and south Lou9 isiana area at full Federal expense: Provided further, That 

10 the Chief of Engineers, acting through the Assistant Sec11 retary of the Army for Civil Works, shall provide, at a 

12 minimum, a monthly report to the House and Senate 

13 Committees on Appropriations detailing the allocation and 

14 obligation of these funds, beginning not later than July 

15 30, 2007: Provided further, That the amount provided 

16 under this heading is designated as an emergency require17 ment pursuant to section 501 of H. Con. Res. 376 (109th 

18 Congress), as made applicable to the House of Representa19 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

20 GENERAL PROVISION—THIS CHAPTER 

21 SEC. 2301. Up to $650,000,000 of the appropriations 

22 made available under the heading ‘‘Flood Control and 

23 Coastal Emergencies’’ in title II, chapter 3 of Public Law 

24 109–234, for projects in the greater New Orleans metro25 politan area that remain available as of the date of enactVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 ment of this Act may be used by the Secretary of the Army 

2 to improve protection at the Inner Harbor Navigation 

3 Canal, as described under the heading ‘‘Flood Control and 

4 Coastal Emergencies’’, in chapter 3 of Public Law 109– 

5 234: Provided, That the obligation of these funds may be 

6 made without regard to individual amounts specified in 

7 title II, chapter 3 of Public Law 109–234: Provided fur8 ther, That the expenditure of such funds shall not be con9 sidered a transfer or reprogramming under any provision 

10 of law and shall be carried out in accordance with the 

11 terms and conditions specified in an Act making appro12 priations for energy and water development or any other 

13 appropriations Act making additional funds available for 

14 energy and water development: Provided further, That the 

15 amount provided under this heading is designated as an 

16 emergency requirement pursuant to section 501 of H. 

17 Con. Res. 376 (109th Congress), as made applicable to 

18 the House of Representatives by section 511(a)(4) of H. 

19 Res. 6 (110th Congress). 

20 CHAPTER 4 

21 SMALL BUSINESS ADMINISTRATION 

22 DISASTER LOANS PROGRAM ACCOUNT

23 For an additional amount for ‘‘Disaster Loans Pro24 gram Account’’ for administrative expenses to carry out 

25 the disaster loan program, $25,069,000, to remain availVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 able until expended, which may be transferred to and 

2 merged with ‘‘Small Business Administration, Salaries 

3 and Expenses’’: Provided, That the amount provided 

4 under this heading is designated as an emergency require5 ment pursuant to section 501 of H. Con. Res. 376 (109th 

6 Congress), as made applicable to the House of Representa7 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

8 CHAPTER 5 

9 DEPARTMENT OF HOMELAND SECURITY 

10 FEDERAL EMERGENCY MANAGEMENT AGENCY

11 DISASTER RELIEF

12 (INCLUDING TRANSFER OF FUNDS)

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

14 $4,310,000,000, to remain available until expended: Pro15 vided, That $4,000,000 shall be transferred to ‘‘Office of 

16 Inspector General’’: Provided further, That the amount 

17 provided under this heading is designated as an emergency 

18 requirement pursuant to section 501 of H. Con. Res. 376 

19 (109th Congress), as made applicable to the House of 

20 Representatives by section 511(a)(4) of H. Res. 6 (110th 

21 Congress). 

22 GENERAL PROVISIONS—THIS CHAPTER 

23 SEC. 2501. (a) IN GENERAL.—Notwithstanding any 

24 other provision of law, including any agreement, the Fed25 eral share of assistance, including direct Federal assist26 ance, provided for the States of Louisiana, Mississippi, 


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1 Florida, Alabama, and Texas in connection with Hurri2 canes Katrina, Wilma, Dennis, and Rita under sections 

3 403, 406, 407, and 408 of the Robert T. Stafford Disaster 

4 Relief and Emergency Assistance Act (42 U.S.C. 5170b, 

5 5172, 5173, and 5174) shall be 100 percent of the eligible 

6 costs under such sections. 

7 (b) APPLICABILITY.— 

8 (1) IN GENERAL.—Subject to paragraph (2), 

9 the Federal share provided by subsection (a) shall 

10 apply to disaster assistance provided before the date 

11 of enactment of this Act. 

12 (2) LIMITATION.—In the case of disaster assist13 ance provided under sections 403, 406, and 407 of 

14 the Robert T. Stafford Disaster Relief and Emer15 gency Assistance Act, the Federal share provided by 

16 subsection (a) shall be limited to assistance provided 

17 for projects for which project worksheets have been 

18 approved by the Federal Emergency Management 

19 Agency before the date of enactment of this Act. 

20 SEC. 2502. (a) COMMUNITY DISASTER LOAN ACT.— 

21 (1) IN GENERAL.—Section 2(a) of the Commu22 nity Disaster Loan Act of 2005 (Public Law 109– 

23 88) is amended by striking ‘‘Provided further, That 

24 notwithstanding section 417(c)(1) of the Stafford 

25 Act, such loans may not be canceled:’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by paragraph (1) shall be effective on the date of en3 actment of the Community Disaster Loan Act of 

4 2005 (Public Law 109–88). 

5 (b) EMERGENCY SUPPLEMENTAL APPROPRIATIONS

6 ACT.— 

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

8 Emergency Supplemental Appropriations Act for 

9 Defense, the Global War on Terror, and Hurricane 

10 Recovery, 2006 (Public Law 109–234) is amended 

11 under the heading ‘‘Federal Emergency Manage12 ment Agency Disaster Assistance Direct Loan Pro13 gram Account’’ by striking ‘‘Provided further, That 

14 notwithstanding section 417(c)(1) of such Act, such 

15 loans may not be canceled:’’. 

16 (2) EFFECTIVE DATE.—The amendment made 

17 by paragraph (1) shall be effective on the date of en18 actment of the Emergency Supplemental Appropria19 tions Act for Defense, the Global War on Terror, 

20 and Hurricane Recovery, 2006 (Public Law 109– 

21 234). 

22 (c) The amounts provided in this section are des23 ignated as emergency requirements pursuant to section 

24 501 of H. Con. Res. 376 (109th Congress), as made appliVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 cable to the House of Representatives by section 511(a)(4) 

2 of H. Res. 6 (110th Congress). 

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

4 Emergency Supplemental Appropriations Act for Defense, 

5 the Global War on Terror, and Hurricane Recovery, 2006 

6 (Public Law 109–234) is amended by striking ‘‘12 

7 months’’ and inserting ‘‘24 months’’. 

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

9 this section shall be effective on the date of enactment of 

10 the Emergency Supplemental Appropriations Act for De11 fense, the Global War on Terror, and Hurricane Recovery, 

12 2006 (Public Law 109–234). 

13 CHAPTER 6 

14 DEPARTMENT OF HEALTH AND HUMAN 

15 SERVICES 

16 ADMINISTRATION FOR CHILDREN AND FAMILIES

17 SOCIAL SERVICES BLOCK GRANT

18 Notwithstanding section 2002(c) of the Social Secu19 rity Act (42 U.S.C. 1397a(c)), funds made available under 

20 the heading ‘‘Social Services Block Grant’’ in division B 

21 of Public Law 109–148 shall be available for expenditure 

22 by the States through the end of fiscal year 2008: Pro23 vided, That the amount provided under this heading is 

24 designated as an emergency requirement pursuant to sec25 tion 501 of H. Con. Res. 376 (109th Congress), as made 


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1 applicable to the House of Representatives by section 

2 511(a)(4) of H. Res. 6 (110th Congress). 

3 DEPARTMENT OF EDUCATION 

4 INNOVATION AND IMPROVEMENT

5 For carrying out activities authorized by subpart 1 

6 of part D of title V of the Elementary and Secondary Edu7 cation Act of 1965, $30,000,000, to remain available until 

8 expended, for use by the States of Louisiana, Mississippi, 

9 and Alabama for the following costs: (1) recruiting and 

10 compensating teachers, principals, other school adminis11 trators, and other educators for positions in reopening 

12 public elementary and secondary schools impacted by Hur13 ricane Katrina or Hurricane Rita, including through such 

14 mechanisms as paying salary premiums, performance bo15 nuses, housing subsidies and relocation costs; and (2) ac16 tivities to build the capacity of reopening such public ele17 mentary and secondary schools to provide an effective edu18 cation, including the design, adaptation, and implementa19 tion of high-quality formative assessments; the establish20 ment of partnerships with nonprofit entities with a dem21 onstrated track record in recruiting and retaining out22 standing teachers and other school leaders; and paid re23 lease time for teachers and principals to identify and rep24 licate successful practices from the fastest-improving and 

25 highest-performing schools: Provided, That the Secretary 


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1 of Education shall allocate such funds among such States 

2 that submit applications; that such allocation shall be 

3 based on the number of public elementary and secondary 

4 schools in each State that were closed for 30 days or more 

5 during the period beginning on August 29, 2005, and end6 ing on December 31, 2005, due to Hurricane Katrina or 

7 Hurricane Rita; and that such States shall in turn allocate 

8 funds, on a competitive basis, to local education agencies, 

9 giving priority to such agencies with the highest percent10 ages of public elementary and secondary schools that are 

11 closed as a result of such hurricanes as of the date of en12 actment of this Act and the highest percentages of public 

13 elementary and secondary schools with a student-teacher 

14 ratio of at least 25 to 1: Provided further, That not later 

15 than 60 days after the date of enactment of this Act, the 

16 State educational agency, in cooperation with local edu17 cational agencies, teachers’ unions, local principals’ orga18 nizations, local parents’ organizations, local business orga19 nizations, and local charter schools organizations, shall de20 velop a plan for a rating system for performance bonuses 

21 and if the State educational agency has failed to reach 

22 such an agreement that is satisfactory to all consulting 

23 entities by such deadline, the State educational agency 

24 shall immediately notify Congress of such failure and rea25 sons for it and shall, not later than 30 days after such 


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1 notification, establish and implement a rating system that 

2 shall be based on strong learning gains for students and 

3 growth in student achievement, based on classroom obser4 vation and feedback at least 4 times annually, conducted 

5 by multiple sources (including principals and master 

6 teachers), and evaluated against research-validated ru7 brics that use planning, instructional, and learning envi8 ronment standards to measure teaching performance: Pro9 vided further, That the amount provided under this head10 ing is designated as an emergency requirement pursuant 

11 to section 501 of H. Con. Res. 376 (109th Congress), as 

12 made applicable to the House of Representatives by sec13 tion 511(a)(4) of H. Res. 6 (110th Congress). 

14 HURRICANE EDUCATION RECOVERY

15 PROGRAMS TO RESTART SCHOOL OPERATIONS

16 Funds made available under section 102 of the Hur17 ricane Education Recovery Act (title IV of division B of 

18 Public Law 109–148) may be used by the States of Lou19 isiana, Mississippi, Alabama, and Texas, in addition to the 

20 uses of funds described in section 102(e) for the following 

21 costs: (1) recruiting and compensating teachers, prin22 cipals, other school administrators, and other educators 

23 for positions in reopening public elementary and secondary 

24 schools impacted by Hurricane Katrina or Hurricane Rita, 

25 including through such mechanisms as paying salary preVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 miums, performance bonuses, housing subsidies and relo2 cation costs; and (2) activities to build the capacity of re3 opening such public elementary and secondary schools to 

4 provide an effective education, including the design, adap5 tation, and implementation of high-quality formative as6 sessments; the establishment of partnerships with non7 profit entities with a demonstrated track record in recruit8 ing and retaining outstanding teachers and other school 

9 leaders; and paid release time for teachers and principals 

10 to identify and replicate successful practices from the fast11 est-improving and highest-performing schools: Provided, 

12 That not later than 60 days after the date of enactment 

13 of this Act, the State educational agency, in cooperation 

14 with local educational agencies, teachers’ unions, local 

15 principals’ organizations, local parents’ organizations, 

16 local business organizations, and local charter schools or17 ganizations, shall develop a plan for a rating system for 

18 performance bonuses and if the State educational agency 

19 has failed to reach such an agreement that is satisfactory 

20 to all consulting entities by such deadline, the State edu21 cational agency shall immediately notify Congress of such 

22 failure and reasons for it and shall, not later than 30 days 

23 after such notification, establish and implement a rating 

24 system that shall be based on strong learning gains for 

25 students and growth in student achievement, based on 


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1 classroom observation and feedback at least 4 times annu2 ally, conducted by multiple sources (including principals 

3 and master teachers), and evaluated against research-vali4 dated rubrics that use planning, instructional, and learn5 ing environment standards to measure teaching perform6 ance: Provided further, That the amount provided under 

7 this heading is designated as an emergency requirement 

8 pursuant to section 501 of H. Con. Res. 376 (109th Con9 gress), as made applicable to the House of Representatives 

10 by section 511(a)(4) of H. Res. 6 (110th Congress). 

11 HIGHER EDUCATION

12 For an additional amount under part B of title VII 

13 of the Higher Education Act of 1965 (‘‘HEA’’) for institu14 tions of higher education (as defined in section 102 of that 

15 Act) that are located in an area in which a major disaster 

16 was declared in accordance with section 401 of the Robert 

17 T. Stafford Disaster Relief and Emergency Assistance Act 

18 related to hurricanes in the Gulf of Mexico in calendar 

19 year 2005, $30,000,000: Provided, That such funds shall 

20 be available to the Secretary of Education only for pay21 ments to help defray the expenses (which may include lost 

22 revenue, reimbursement for expenses already incurred, 

23 and construction) incurred by such institutions of higher 

24 education that were forced to close for at least 30 consecu25 tive calendar days between August 25, 2005, and January 


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1 1, 2006, as a result of damage directly caused by such 

2 hurricanes and for payments to enable such institutions 

3 to provide grants to students who attend such institutions 

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

5 Provided further, That such payments shall be made in 

6 accordance with criteria established by the Secretary and 

7 made publicly available without regard to section 437 of 

8 the General Education Provisions Act, section 553 of title 

9 5, United States Code, or part B of title VII of the HEA: 

10 Provided further, That the amount provided under this 

11 heading is designated as an emergency requirement pursu12 ant to section 501 of H. Con. Res. 376 (109th Congress), 

13 as made applicable to the House of Representatives by sec14 tion 511(a)(4) of H. Res. 6 (110th Congress). 

15 GENERAL PROVISION—THIS CHAPTER 

16 SEC. 2601. Section 105(b) of title IV of division B 

17 of Public Law 109–148 is amended by adding at the end 

18 the following new sentence: ‘‘With respect to the program 

19 authorized by section 102 of this Act, the waiver authority 

20 in subsection (a) of this section shall be available until 

21 the end of fiscal year 2008.’’. 


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1 CHAPTER 7 

2 DEPARTMENT OF HOUSING AND URBAN 

3 DEVELOPMENT 

4 PUBLIC AND INDIAN HOUSING

5 TENANT-BASED RENTAL ASSISTANCE

6 For an additional amount for the purposes specified 

7 under, and subject to the provisions of, this heading in 

8 chapter 9 of title I of division B of Public Law 109–148 

9 (119 Stat. 2779), $80,000,000, to remain available until 

10 December 31, 2007: Provided, That the third proviso 

11 under such heading in Public Law 109–148 shall be ap12 plied to amounts made available under this heading and 

13 under such heading in Public Law 109–148 by sub14 stituting ‘‘until December 31, 2007’’ for ‘‘for up to 18 

15 months’’: Provided further, That $80,000,000 shall be re16 scinded from unobligated balances remaining from the 

17 amounts made available under such heading in Public Law 

18 109–148: Provided further, That the amount provided 

19 under this heading is designated as an emergency require20 ment pursuant to section 501 of H. Con. Res. 376 (109th 

21 Congress), as made applicable to the House of Representa22 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

23 OFFICE OF INSPECTOR GENERAL

24 For an additional amount for ‘‘Office of Inspector 

25 General’’ for necessary expenses related to the conVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 sequences of Hurricane Katrina and other hurricanes of 

2 the 2005 season, $10,240,000, to remain available until 

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

4 under this heading is designated as an emergency require5 ment pursuant to section 501 of H. Con. Res. 376 (109th 

6 Congress), as made applicable to the House of Representa7 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

8 TITLE III—AGRICULTURAL ASSISTANCE 

9 SEC. 3101. CROP DISASTER ASSISTANCE. 

10 (a) ASSISTANCE AVAILABLE.—There are hereby ap11 propriated to the Secretary of Agriculture such sums as 

12 are necessary, to remain available until expended, to make 

13 emergency financial assistance available to producers on 

14 a farm that incurred qualifying quantity or quality losses 

15 for the 2005 or 2006 crop, or for the 2007 crop before 

16 the date of the enactment of this Act, due to damaging 

17 weather or any related condition (including losses due to 

18 crop diseases, insects, and delayed harvest), as determined 

19 by the Secretary. However, to be eligible for assistance, 

20 the crop subject to the loss must have been harvested be21 fore the date of the enactment of this Act or, in the case 

22 of prevented planting or other total loss, would have been 

23 harvested before the date of the enactment of this Act in 

24 the absence of the damaging weather or any related condi25 tion. 


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1 (b) ELECTION OF CROP YEAR.—If a producer in2 curred qualifying crop losses in more than one of the 

3 2005, 2006, or 2007 crop years, the producer shall elect 

4 to receive assistance under this section for losses incurred 

5 in only one of such crop years. The producer may not re6 ceive assistance under this section for more than one crop 

7 year. 

8 (c) ADMINISTRATION.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the Secretary of Agriculture shall make 

11 assistance available under this section in the same 

12 manner as provided under section 815 of the Agri13 culture, Rural Development, Food and Drug Admin14 istration and Related Agencies Appropriations Act, 

15 2001 (Public Law 106–387; 114 Stat. 1549A–55), 

16 including using the same loss thresholds for quantity 

17 and economic losses as were used in administering 

18 that section, except that the payment rate shall be 

19 50 percent of the established price, instead of 65 

20 percent. 

21 (2) LOSS THRESHOLDS FOR QUALITY

22 LOSSES.—In the case of a payment for quality loss 

23 for a crop under subsection (a), the loss thresholds 

24 for quality loss for the crop shall be determined 

25 under subsection (d). 


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1 (d) QUALITY LOSSES.— 

2 (1) IN GENERAL.—Subject to paragraph (3), 

3 the amount of a payment made to producers on a 

4 farm for a quality loss for a crop under subsection 

5 (a) shall be equal to the amount obtained by multi6 plying— 

7 (A) 65 percent of the payment quantity de8 termined under paragraph (2); by 

9 (B) 50 percent of the payment rate deter10 mined under paragraph (3). 

11 (2) PAYMENT QUANTITY.—For the purpose of 

12 paragraph (1)(A), the payment quantity for quality 

13 losses for a crop of a commodity on a farm shall 

14 equal the lesser of— 

15 (A) the actual production of the crop af16 fected by a quality loss of the commodity on the 

17 farm; or 

18 (B) the quantity of expected production of 

19 the crop affected by a quality loss of the com20 modity on the farm, using the formula used by 

21 the Secretary of Agriculture to determine quan22 tity losses for the crop of the commodity under 

23 subsection (a). 

24 (3) PAYMENT RATE.—For the purpose of para25 graph (1)(B) and in accordance with paragraphs (5) 


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1 and (6), the payment rate for quality losses for a 

2 crop of a commodity on a farm shall be equal to the 

3 difference between— 

4 (A) the per unit market value that the 

5 units of the crop affected by the quality loss 

6 would have had if the crop had not suffered a 

7 quality loss; and 

8 (B) the per unit market value of the units 

9 of the crop affected by the quality loss. 

10 (4) ELIGIBILITY.—For producers on a farm to 

11 be eligible to obtain a payment for a quality loss for 

12 a crop under subsection (a), the amount obtained by 

13 multiplying the per unit loss determined under para14 graph (1) by the number of units affected by the 

15 quality loss shall be at least 25 percent of the value 

16 that all affected production of the crop would have 

17 had if the crop had not suffered a quality loss. 

18 (5) MARKETING CONTRACTS.—In the case of 

19 any production of a commodity that is sold pursuant 

20 to 1 or more marketing contracts (regardless of 

21 whether the contract is entered into by the pro22 ducers on the farm before or after harvest) and for 

23 which appropriate documentation exists, the quan24 tity designated in the contracts shall be eligible for 


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1 quality loss assistance based on the 1 or more prices 

2 specified in the contracts. 

3 (6) OTHER PRODUCTION.—For any additional 

4 production of a commodity for which a marketing 

5 contract does not exist or for which production con6 tinues to be owned by the producer, quality losses 

7 shall be based on the average local market discounts 

8 for reduced quality, as determined by the appro9 priate State committee of the Farm Service Agency. 

10 (7) QUALITY ADJUSTMENTS AND DISCOUNTS.— 

11 The appropriate State committee of the Farm Serv12 ice Agency shall identify the appropriate quality ad13 justment and discount factors to be considered in 

14 carrying out this subsection, including— 

15 (A) the average local discounts actually ap16 plied to a crop; and 

17 (B) the discount schedules applied to loans 

18 made by the Farm Service Agency or crop in19 surance coverage under the Federal Crop Insur20 ance Act (7 U.S.C. 1501 et seq.). 

21 (8) ELIGIBLE PRODUCTION.—The Secretary of 

22 Agriculture shall carry out this subsection in a fair 

23 and equitable manner for all eligible production, in24 cluding the production of fruits and vegetables, 

25 other specialty crops, and field crops. 


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1 (e) PAYMENT LIMITATIONS.— 

2 (1) LIMIT ON AMOUNT OF ASSISTANCE.—As3 sistance provided under this section to a producer 

4 for losses to a crop, together with the amounts speci5 fied in paragraph (2) applicable to the same crop, 

6 may not exceed 95 percent of what the value of the 

7 crop would have been in the absence of the losses, 

8 as estimated by the Secretary of Agriculture. 

9 (2) OTHER PAYMENTS.—In applying the limita10 tion in paragraph (1), the Secretary shall include the 

11 following: 

12 (A) Any crop insurance payment made 

13 under the Federal Crop Insurance Act (7 

14 U.S.C. 1501 et seq.) or payment under section 

15 196 of the Federal Agricultural Improvement 

16 and Reform Act of 1996 (7 U.S.C. 7333) that 

17 the producer receives for losses to the same 

18 crop. 

19 (B) The value of the crop that was not lost 

20 (if any), as estimated by the Secretary. 

21 (3) DUPLICATIVE PAYMENTS.—The Secretary 

22 of Agriculture shall ensure, to the maximum extent 

23 practicable, that no producer on a farm receives du24 plicative payments under this section and any other 

25 Federal program for the same loss. 


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1 (f) ELIGIBILITY REQUIREMENTS AND LIMITA2 TIONS.—The producers on a farm shall not be eligible for 

3 assistance under this section with respect to losses to an 

4 insurable commodity or noninsurable commodity if the 

5 producers on the farm— 

6 (1) in the case of an insurable commodity, did 

7 not obtain a policy or plan of insurance for the in8 surable commodity under the Federal Crop Insur9 ance Act (7 U.S.C. 1501 et seq.) for the crop incur10 ring the losses; 

11 (2) in the case of a noninsurable commodity, 

12 did not file the required paperwork, and pay the ad13 ministrative fee by the applicable State filing dead14 line, for the noninsurable commodity under section 

15 196 of the Federal Agriculture Improvement and 

16 Reform Act of 1996 (7 U.S.C. 7333) for the crop 

17 incurring the losses; or 

18 (3) were not in compliance with highly erodible 

19 land conservation and wetland conservation provi20 sions. 

21 (g) TIMING.— 

22 (1) IN GENERAL.—Subject to paragraph (2), 

23 the Secretary of Agriculture shall make payments to 

24 producers on a farm for a crop under this section 

25 not later than 60 days after the date the producers 


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1 on the farm submit to the Secretary a completed ap2 plication for the payments. 

3 (2) INTEREST.—If the Secretary does not make 

4 payments to the producers on a farm by the date de5 scribed in paragraph (1), the Secretary shall pay to 

6 the producers on a farm interest on the payments at 

7 a rate equal to the current (as of the sign-up dead8 line established by the Secretary) market yield on 

9 outstanding, marketable obligations of the United 

10 States with maturities of 30 years. 

11 (h) DEFINITIONS.—In this section: 

12 (1) INSURABLE COMMODITY.—The term ‘‘insur13 able commodity’’ means an agricultural commodity 

14 (excluding livestock) for which the producers on a 

15 farm are eligible to obtain a policy or plan of insur16 ance under the Federal Crop Insurance Act (7 

17 U.S.C. 1501 et seq.). 

18 (2) NONINSURABLE COMMODITY.—The term 

19 ‘‘noninsurable commodity’’ means a crop for which 

20 the producers on a farm are eligible to obtain assist21 ance under section 196 of the Federal Agriculture 

22 Improvement and Reform Act of 1996 (7 U.S.C. 

23 7333). 

24 SEC. 3102. LIVESTOCK ASSISTANCE. 

25 (a) LIVESTOCK COMPENSATION PROGRAM.— 


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1 (1) AVAILABILITY OF ASSISTANCE.—There are 

2 hereby appropriated to the Secretary of Agriculture 

3 such sums as are necessary, to remain available 

4 until expended, to carry out the livestock compensa5 tion program established under subpart B of part 

6 1416 of title 7, Code of Federal Regulations, as an7 nounced by the Secretary on February 12, 2007 (72 

8 Fed. Reg. 6443), to provide compensation for live9 stock losses during calendar years 2005 and 2006, 

10 and during calendar year 2007 before the date of 

11 the enactment of this Act, due to a disaster, as de12 termined by the Secretary, including wildfire in the 

13 State of Texas and other States and blizzards in the 

14 States of Colorado, Kansas, Nebraska, New Mexico, 

15 and Oklahoma. However, the payment rate for com16 pensation under this subsection shall be 75 percent 

17 of the payment rate otherwise applicable under such 

18 program. 

19 (2) ELIGIBLE APPLICANTS.—In carrying out 

20 the program described in paragraph (1), the Sec21 retary shall provide assistance to any applicant 

22 that— 

23 (A) conducts a livestock operation that is 

24 located in a disaster county with eligible live25 stock specified in paragraph (1) of section 


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1 1416.102(a) of title 7, Code of Federal Regula2 tions (72 Fed. Reg. 6444), an animal described 

3 in section 10806(a)(1) of the Farm Security 

4 and Rural Investment Act of 2002 (21 U.S.C. 

5 321d(a)(1)), or other animals designated by the 

6 Secretary as livestock for purposes of this sub7 section; and 

8 (B) meets the requirements of paragraphs 

9 (3) and (4) of section 1416.102(a) of title 7, 

10 Code of Federal Regulations, and all other eligi11 bility requirements established by the Secretary 

12 for the program. 

13 (3) ELECTION OF LOSSES.—If a producer in14 curred eligible livestock losses in more than one of 

15 the 2005, 2006, or 2007 calendar years, the pro16 ducer shall elect to receive payments under this sub17 section for losses incurred in only one of such cal18 endar years, and such losses must have been in19 curred in a county declared or designated as a dis20 aster county in that same calendar year. 

21 (4) MITIGATION.—In determining the eligibility 

22 for or amount of payments for which a producer is 

23 eligible under the livestock compensation program, 

24 the Secretary shall not penalize a producer that 

25 takes actions (recognizing disaster conditions) that 


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1 reduce the average number of livestock the producer 

2 owned for grazing during the production year for 

3 which assistance is being provided. 

4 (5) LIMITATION.—The Secretary shall ensure, 

5 to the maximum extent practicable, that no producer 

6 on a farm receives duplicative payments under this 

7 subsection and another Federal program with re8 spect to any loss. 

9 (6) DEFINITIONS.—In this subsection: 

10 (A) DISASTER COUNTY.—The term ‘‘dis11 aster county’’ means— 

12 (i) a county included in the geo13 graphic area covered by a natural disaster 

14 declaration; and 

15 (ii) each county contiguous to a coun16 ty described in clause (i). 

17 (B) NATURAL DISASTER DECLARATION.— 

18 The term ‘‘natural disaster declaration’’ 

19 means— 

20 (i) a natural disaster declared by the 

21 Secretary during calendar year 2005 or 

22 2006, or calendar year 2007 before the 

23 date of the enactment of this Act, under 

24 section 321(a) of the Consolidated Farm 


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1 and Rural Development Act (7 U.S.C. 

2 1961(a)); or 

3 (ii) a major disaster or emergency 

4 designated by the President during cal5 endar year 2005 or 2006, or calendar year 

6 2007 before the date of the enactment of 

7 this Act, under the Robert T. Stafford Dis8 aster Relief and Emergency Assistance Act 

9 (42 U.S.C. 5121 et seq.). 

10 (b) LIVESTOCK INDEMNITY PAYMENTS.— 

11 (1) AVAILABILITY OF ASSISTANCE.—There are 

12 hereby appropriated to the Secretary of Agriculture 

13 such sums as are necessary, to remain available 

14 until expended, to make livestock indemnity pay15 ments to producers on farms that have incurred live16 stock losses during calendar years 2005 and 2006, 

17 and during calendar year 2007 before the date of 

18 the enactment of this Act, due to a disaster, as de19 termined by the Secretary, including hurricanes, 

20 floods, anthrax, wildfires in the State of Texas and 

21 other States, and blizzards in the States of Colo22 rado, Kansas, Nebraska, New Mexico, and Okla23 homa. 

24 (2) ELECTION OF LOSSES.—If a producer in25 curred eligible livestock losses in more than one of 


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1 the 2005, 2006, or 2007 calendar years, the pro2 ducer shall elect to receive payments under this sub3 section for losses incurred in only one of such cal4 endar years. The producer may not receive payments 

5 under this subsection for more than one calendar 

6 year. 

7 (3) PAYMENT RATES.—Indemnity payments to 

8 a producer on a farm under paragraph (1) shall be 

9 made at a rate of not less than 30 percent of the 

10 market value of the applicable livestock on the day 

11 before the date of death of the livestock, as deter12 mined by the Secretary. 

13 (4) LIVESTOCK DEFINED.—In this subsection, 

14 the term ‘‘livestock’’ means an animal that— 

15 (A) is specified in clause (i) of section 

16 1416.203(a)(2) of title 7, Code of Federal Reg17 ulations (72 Fed. Reg. 6445), or is designated 

18 by the Secretary as livestock for purposes of 

19 this subsection; and 

20 (B) meets the requirements of clauses (iii) 

21 and (iv) of such section. 

22 (c) LIMIT ON AMOUNT OF ASSISTANCE.—The Sec23 retary of Agriculture shall ensure, to the maximum extent 

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1 tive payments under this section and any other Federal 

2 program for the same loss. 

3 SEC. 3103. SPINACH. 

4 There is hereby appropriated to the Secretary of Ag5 riculture $25,000,000, to remain available until expended, 

6 to make payments to growers and first handlers, as de7 fined by the Secretary, of fresh spinach that were unable 

8 to market spinach crops as a result of the Food and Drug 

9 Administration Public Health Advisory issued on Sep10 tember 14, 2006. The payment made to a grower or first 

11 handler under this section shall not exceed 75 percent of 

12 the value of the unmarketed spinach crops. 

13 SEC. 3104. EMERGENCY CONSERVATION PROGRAM. 

14 There is hereby appropriated to the Secretary of Ag15 riculture $20,000,000, to remain available until expended, 

16 to provide assistance under the Emergency Conservation 

17 Program under title IV of the Agriculture Credit Act of 

18 1978 (16 U.S.C. 2201 et seq.) for the cleanup and restora19 tion of farmland damaged by freezing temperatures at any 

20 time during the period beginning on January 1, 2007, and 

21 ending on the date of the enactment of this Act. 

22 SEC. 3105. PAYMENT LIMITATIONS. 

23 (a) REDUCTION IN PAYMENTS TO REFLECT PAY24 MENTS FOR SAME OR SIMILAR LOSSES.—The amount of 

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1 tions 3101 and 3102 shall be reduced by any amount re2 ceived by the producer for the same loss or any similar 

3 loss under— 

4 (1) the Department of Defense, Emergency 

5 Supplemental Appropriations to Address Hurricanes 

6 in the Gulf of Mexico, and Pandemic Influenza Act, 

7 2006 (Public Law 109–148; 119 Stat. 2680); or 

8 (2) an agricultural disaster assistance provision 

9 contained in the announcement of the Secretary of 

10 Agriculture on January 26, 2006. 

11 (b) ADJUSTED GROSS INCOME LIMITATION.—Section 

12 1001D of the Food Security Act of 1985 (7 U.S.C. 1308– 

13 3a) shall apply with respect to assistance provided under 

14 sections 3101, 3102, 3103, and 3104. 

15 SEC. 3106. ADMINISTRATION. 

16 (a) REGULATIONS.—The Secretary of Agriculture 

17 may promulgate such regulations as are necessary to im18 plement sections 3101 and 3102. 

19 (b) PROCEDURE.—The promulgation of the imple20 menting regulations and the administration of sections 

21 3101 and 3102 shall be made without regard to— 

22 (1) the notice and comment provisions of sec23 tion 553 of title 5, United States Code; 

24 (2) the Statement of Policy of the Secretary of 

25 Agriculture effective July 24, 1971 (36 Fed. Reg. 


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1 13804), relating to notices of proposed rulemaking 

2 and public participation in rulemaking; and 

3 (3) chapter 35 of title 44, United States Code 

4 (commonly known as the ‘‘Paperwork Reduction 

5 Act’’). 

6 (c) CONGRESSIONAL REVIEW OF AGENCY RULE7 MAKING.—In carrying out this section, the Secretary of 

8 Agriculture shall use the authority provided under section 

9 808 of title 5, United States Code. 

10 (d) USE OF COMMODITY CREDIT CORPORATION; 

11 LIMITATION.—In implementing sections 3101 and 3102, 

12 the Secretary of Agriculture may use the facilities, serv13 ices, and authorities of the Commodity Credit Corpora14 tion. The Corporation shall not make any expenditures to 

15 carry out sections 3101 and 3102 unless funds have been 

16 specifically appropriated for such purpose. 

17 SEC. 3107. MILK INCOME LOSS CONTRACT PROGRAM. 

18 Notwithstanding subsections (c)(3), (f), and (g) of 

19 section 1502 of the Farm Security and Rural Investment 

20 Act of 2002 (7 U.S.C. 7982), there is hereby appropriated 

21 $283,000,000, to remain available until expended, for pay22 ments under such section, using the payment rate speci23 fied in subsection (c)(3)(B) of such section, from Sep24 tember 1, 2007, through September 30, 2008. Of such 

25 amount, $252,000,000 shall be available only on or after 


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1 September 30, 2007, and only so long as an Act to provide 

2 for the continuation of agricultural programs for fiscal 

3 years after 2007, including such section 1502, is not en4 acted. 

5 SEC. 3108. PEANUT STORAGE COSTS. 

6 Notwithstanding subsection (a)(6) of section 1307 of 

7 the Farm Security and Rural Investment Act of 2002 (7 

8 U.S.C. 7957), there is hereby appropriated $74,000,000, 

9 to remain available until expended, for the payment of 

10 storage, handling, and other associated costs for the 2007 

11 crop of peanuts to ensure proper storage of peanuts for 

12 which a loan is made under such section. Of such amount, 

13 $74,000,000 shall be available only on or after September 

14 30, 2007, and only so long as an Act to provide for the 

15 continuation of agricultural programs for fiscal years after 

16 2007, including such section 1307, is not enacted. 

17 SEC. 3109. LOSSES DUE TO APHIS EMERGENCY ORDER. 

18 There is hereby appropriated to the Secretary of Ag19 riculture $5,000,000, to remain available until expended, 

20 to provide compensation to aquaculture operations and 

21 other persons in the United States engaged in the business 

22 of breeding, rearing, or transporting live fish to cover all 

23 or a portion of the economic losses incurred by the oper24 ation or person as a result of the emergency order issued 

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1 tober 24, 2006, prohibiting the importation of specified 

2 species of live fish from Ontario and Quebec, Canada, and 

3 the interstate movement of these same species of fish from 

4 New York, Pennsylvania, Ohio, Michigan, Indiana, Illi5 nois, Minnesota, or Wisconsin due to outbreaks of viral 

6 hemorrhagic septicemia. The operation or person seeking 

7 compensation shall be required to document to the satis8 faction of the Secretary the economic losses so incurred 

9 as a result of the emergency order. 

10 SEC. 3110. EMERGENCY DESIGNATION. 

11 The amounts provided in this title are designated as 

12 an emergency requirement pursuant to section 501 of H. 

13 Con. Res. 376 (109th Congress), as made applicable to 

14 the House of Representatives by section 511(a)(4) of H. 

15 Res. 6 (110th Congress). 

16 TITLE IV—OTHER MATTERS 

17 CHAPTER 1 

18 DEPARTMENT OF AGRICULTURE 

19 FARM SERVICE AGENCY

20 SALARIES AND EXPENSES

21 For an additional amount for ‘‘Salaries and Ex22 penses’’, $48,000,000. 

23 GENERAL PROVISIONS—THIS CHAPTER 

24 SEC. 4101. Of the funds made available through ap25 propriations to the Food and Drug Administration for fisVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 cal year 2007, not less than $4,000,000 shall be for the 

2 Office of Women’s Health of such Administration. 

3 SEC. 4102. None of the funds made available to the 

4 Department of Agriculture for fiscal year 2007 may be 

5 used for a risk-based inspection program for poultry or 

6 meat unless the Secretary of Agriculture considers such 

7 program to be a rule under chapter 5 of title 5, United 

8 States Code. 

9 CHAPTER 2 

10 DEPARTMENT OF COMMERCE 

11 NATIONAL OCEANIC AND ATMOSPHERIC

12 ADMINISTRATION

13 OPERATIONS, RESEARCH, AND FACILITIES

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

15 and Facilities’’, National Marine Fisheries Service, 

16 $60,400,000, to remain available until September 30, 

17 2008: Provided, That the National Marine Fisheries Serv18 ice shall cause such amounts to be distributed among fish19 ing communities, Indian tribes, individuals, small busi20 nesses, including fishermen, fish processors, and related 

21 businesses, and other persons for assistance to mitigate 

22 the economic and other social effects caused by the com23 mercial fishery failure as determined by the Secretary on 

24 August 10, 2006: Provided further, That the amount pro25 vided under this heading is designated as an emergency 


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1 requirement pursuant to section 501 of H. Con. Res. 376 

2 (109th Congress), as made applicable to the House of 

3 Representatives by section 511(a)(4) of H. Res. 6 (110th 

4 Congress). 

5 CHAPTER 3 

6 SEC. 4301. (a) Section 102(a)(3)(B) of the Help 

7 America Vote Act of 2002 (42 U.S.C. 15302(a)(3)(B)) is 

8 amended by striking ‘‘January 1, 2006’’ and inserting 

9 ‘‘January 1, 2008’’. 

10 (b) The amendment made by subsection (a) shall take 

11 effect as if included in the enactment of the Help America 

12 Vote Act of 2002. 

13 CHAPTER 4 

14 DEPARTMENT OF HOMELAND SECURITY 

15 GENERAL PROVISIONS

16 (RESCISSION)

17 SEC. 4401. Of the unobligated balances made avail18 able pursuant to section 505 of Public Law 109–90, 

19 $89,800,000 are rescinded. 

20 SEC. 4402. The last two provisos under the heading 

21 ‘‘Department of Homeland Security, Customs and Border 

22 Protection—Salaries and Expenses’’ in Public Law 109– 

23 90 shall remain in effect through September 30, 2007. 


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1 SEC. 4403. (a) IN GENERAL.—Any contract, sub2 contract, or task order described in subsection (b) shall 

3 contain the following: 

4 (1) A requirement for a technical review of all 

5 designs, design changes, and engineering change 

6 proposals, and a requirement to specifically address 

7 all engineering concerns identified in the review be8 fore the obligation of further funds may occur. 

9 (2) A requirement that the Coast Guard main10 tain technical warrant holder authority, or the equiv11 alent, for major assets. 

12 (3) A requirement for independent cost esti13 mates of major changes. 

14 (4) A requirement for measurement of con15 tractor and subcontractor performance based on the 

16 status of all work performed. 

17 (b) CONTRACTS, SUBCONTRACTS, AND TASK ORDERS

18 COVERED.—Subsection (a) applies to— 

19 (1) any major procurement contract entered 

20 into by the Coast Guard; 

21 (2) any subcontract entered into under such a 

22 contract; and 

23 (3) any task order issued pursuant to such a 

24 contract or subcontract. 


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1 (c) PLAN FOR EXPENDITURE OF DEEPWATER

2 FUNDS.—The funds appropriated in Public Law 109–295 

3 for the Integrated Deepwater Systems program may not 

4 be obligated until the Committees on Appropriations of the 

5 Senate and the House of Representatives receive and ap6 prove a plan for expenditure that— 

7 (1) defines activities, milestones, yearly costs, 

8 and lifecycle costs for each procurement of a major 

9 asset, including an independent cost estimate for 

10 each; 

11 (2) identifies lifecycle staffing and training 

12 needs of Coast Guard project managers and of pro13 curement and contract staff; 

14 (3) identifies all Integrated Product Teams that 

15 are not chaired by Coast Guard personnel and ex16 plains why the Coast Guard does not chair; 

17 (4) identifies competition to be conducted in 

18 each procurement; 

19 (5) does not rely on a single industry entity or 

20 contract; 

21 (6) contains very limited indefinite delivery/in22 definite quantity contracts and explains the need for 

23 any indefinite delivery/indefinite quantity contracts; 

24 (7) complies with all applicable acquisition 

25 rules, requirements, and guidelines, and incorporates 


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1 the best systems acquisition management practices 

2 of the Federal Government; 

3 (8) complies with the capital planning and in4 vestment control requirements established by the Of5 fice of Management and Budget, including circular 

6 A–11, part 7; 

7 (9) includes a certification by the Chief Pro8 curement Officer of the Department of Homeland 

9 Security that the Coast Guard has established suffi10 cient controls and procedures to comply with all con11 tracting requirements and that any apparent con12 flicts of interest have been sufficiently addressed; 

13 (10) includes a description of the process used 

14 to act upon deviations from the contractually speci15 fied performance requirements and clearly explains 

16 the actions taken on such deviations; and 

17 (11) is reviewed by the Government Account18 ability Office. 

19 SEC. 4404. (a) IN GENERAL.—With respect to con20 tracts entered into after May 1, 2007, and except as pro21 vided in subsection (b), no entity performing lead system 

22 integrator functions in the acquisition of a major system 

23 by the Department of Homeland Security may have any 

24 direct financial interest in the development or construction 


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1 of any individual system or element of any system of sys2 tems. 

3 (b) EXCEPTION.—An entity described in subsection 

4 (a) may have a direct financial interest in the development 

5 or construction of an individual system or element of a 

6 system of systems if— 

7 (1) the Secretary of Homeland Security cer8 tifies to the Committees on Appropriations of the 

9 Senate and the House of Representatives and the 

10 House Committee on Homeland Security that— 

11 (A) the entity was selected by the Depart12 ment of Homeland Security as a contractor to 

13 develop or construct the system or element con14 cerned through the use of competitive proce15 dures; and 

16 (B) the Department took appropriate steps 

17 to prevent any organizational conflict of interest 

18 in the selection process; or 

19 (2) the entity was selected by a subcontractor 

20 to serve as a lower-tier subcontractor, through a 

21 process over which the entity exercised no control. 

22 (c) CONSTRUCTION.—Nothing in this section shall be 

23 construed to preclude an entity described in subsection (a) 

24 from performing work necessary to integrate two or more 


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1 individual systems or elements of a system of systems with 

2 each other. 

3 (d) REGULATIONS UPDATE.—Not later than May 1, 

4 2007, the Secretary of Homeland Security shall update 

5 the acquisition regulations of the Department of Home6 land Security in order to specify fully in such regulations 

7 the matters with respect to lead system integrators set 

8 forth in this section. Included in such regulations shall be 

9 (1) a precise and comprehensive definition of the term 

10 ‘‘lead system integrator’’, modeled after that used by the 

11 Department of Defense, and (2) a specification of various 

12 types of contracts and fee structures that are appropriate 

13 for use by lead system integrators in the production, field14 ing, and sustainment of complex systems. 

15 CHAPTER 5 

16 DEPARTMENT OF THE INTERIOR 

17 BUREAU OF LAND MANAGEMENT

18 WILDLAND FIRE MANAGEMENT

19 (INCLUDING TRANSFER OF FUNDS)

20 For an additional amount for ‘‘Wildland Fire Man21 agement’’, $100,000,000, to remain available until ex22 pended, for urgent wildland fire suppression activities: 

23 Provided, That such funds shall only become available if 

24 funds previously provided for wildland fire suppression will 

25 be exhausted imminently and the Secretary of the Interior 

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1 tions in writing of the need for these additional funds: Pro2 vided further, That such funds are also available for repay3 ment to other appropriation accounts from which funds 

4 were transferred for wildfire suppression: Provided further, 

5 That the amount provided under this heading is des6 ignated as an emergency requirement pursuant to section 

7 501 of H. Con. Res. 376 (109th Congress), as made appli8 cable to the House of Representatives by section 511(a)(4) 

9 of H. Res. 6 (110th Congress). 

10 UNITED STATES FISH AND WILDLIFE SERVICE

11 RESOURCE MANAGEMENT

12 For an additional amount for ‘‘Resource Manage13 ment’’ for the detection of highly pathogenic avian influ14 enza in wild birds, including the investigation of morbidity 

15 and mortality events, targeted surveillance in live wild 

16 birds, and targeted surveillance in hunter-taken birds, 

17 $7,398,000, to remain available until September 30, 2008. 

18 NATIONAL PARK SERVICE

19 OPERATION OF THE NATIONAL PARK SYSTEM

20 For an additional amount for ‘‘Operation of the Na21 tional Park System’’ for the detection of highly pathogenic 

22 avian influenza in wild birds, including the investigation 

23 of morbidity and mortality events, $525,000, to remain 

24 available until September 30, 2008. 


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1 U.S. GEOLOGICAL SURVEY

2 SURVEYS, INVESTIGATIONS, AND RESEARCH

3 For an additional amount for ‘‘Surveys, Investiga4 tions, and Research’’ for the detection of highly patho5 genic avian influenza in wild birds, including the investiga6 tion of morbidity and mortality events, targeted surveil7 lance in live wild birds, and targeted surveillance in 

8 hunter-taken birds, $5,270,000, to remain available until 

9 September 30, 2008. 

10 DEPARTMENT OF AGRICULTURE 

11 FOREST SERVICE

12 WILDLAND FIRE MANAGEMENT

13 (INCLUDING TRANSFER OF FUNDS)

14 For an additional amount for ‘‘Wildland Fire Man15 agement’’, $400,000,000, to remain available until ex16 pended, for urgent wildland fire suppression activities: 

17 Provided, That such funds shall only become available if 

18 funds provided previously for wildland fire suppression will 

19 be exhausted imminently and the Secretary of Agriculture 

20 notifies the House and Senate Committees on Appropria21 tions in writing of the need for these additional funds: Pro22 vided further, That such funds are also available for repay23 ment to other appropriation accounts from which funds 

24 were transferred for wildfire suppression: Provided further, 

25 That the amount provided under this heading is des26 ignated as an emergency requirement pursuant to section 


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1 501 of H. Con. Res. 376 (109th Congress), as made appli2 cable to the House of Representatives by section 511(a)(4) 

3 of H. Res. 6 (110th Congress). 

4 GENERAL PROVISIONS—THIS CHAPTER 

5 SEC. 4501. There is appropriated not to exceed 

6 $400,000,000 to the Department of Agriculture, to be 

7 used for one-time payments to be allocated, to the max8 imum extent practicable, in the same amounts and in the 

9 same manner as were paid to States and others in 2006 

10 under the Secure Rural Schools and Community Self-De11 termination Act of 2000 (Public Law 106–393; 16 U.S.C. 

12 500 note): Provided, That the amount provided under this 

13 heading is designated as an emergency requirement pursu14 ant to section 501 of H. Con. Res. 376 (109th Congress), 

15 as made applicable to the House of Representatives by sec16 tion 511(a)(4) of H. Res. 6 (110th Congress). 

17 SEC. 4502. Section 20515 of the Continuing Appro18 priations Resolution, 2007 (division B of Public Law 109– 

19 289, as amended by Public Law 110–5) is amended by 

20 inserting before the period: ‘‘; and of which, not to exceed 

21 $9,019,000 shall be available, in addition to amounts oth22 erwise available, for contract support costs’’. 

23 SEC. 4503. Section 20512 of the Continuing Appro24 priations Resolution, 2007 (division B of Public Law 109– 

25 289, as amended by Public Law 110–5) is amended by 


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1 inserting after the first dollar amount: ‘‘, of which, not 

2 to exceed $5,000,000 shall be available, in addition to 

3 amounts otherwise available, for contract support costs; 

4 and of which, not to exceed $7,300,000 may be trans5 ferred to the ‘Indian Health Facilities’ account,’’. 

6 SEC. 4504. Section 20501 of the Continuing Appro7 priations Resolution, 2007 (division B of Public Law 109– 

8 289, as amended by Public Law 110–5) is amended by 

9 inserting after $55,663,000 ‘‘of which $13,000,000 shall 

10 be for Save America’s Treasures’’. 

11 CHAPTER 6 

12 DEPARTMENT OF HEALTH AND HUMAN 

13 SERVICES 

14 NATIONAL INSTITUTES OF HEALTH

15 NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS

16 DISEASES

17 (TRANSFER OF FUNDS)

18 Of the amount provided by the Continuing Appro19 priations Resolution, 2007 (division B of Public Law 109– 

20 289, as amended by Public Law 110–5) for ‘‘National In21 stitute of Allergy and Infectious Diseases’’, $49,500,000 

22 shall be transferred to ‘‘Public Health and Social Services 

23 Emergency Fund’’ to carry out activities relating to ad24 vanced research and development as provided by section 

25 319L of the Public Health Service Act. 


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1 ADMINISTRATION FOR CHILDREN AND FAMILIES

2 LOW-INCOME HOME ENERGY ASSISTANCE

3 For an additional amount to make payments under 

4 section 2604(a)–(d) of the Low-Income Home Energy As5 sistance Act of 1981 (42 U.S.C. 8623(a)–(d)), 

6 $200,000,000: Provided, That grantees may obligate the 

7 funds made available by this paragraph through Sep8 tember 30, 2008, to meet the home energy assistance 

9 needs arising from an emergency as defined in section 

10 2603(1) of such Act (42 U.S.C. 8622(1)) or for energy 

11 crisis intervention under section 2604(c) of such Act (42 

12 U.S.C. 8623(c)) except that, in carrying out this para13 graph, the Governor of a State (or equivalent authority 

14 in the case of grantee other than a State) shall be treated 

15 as the Secretary for purposes of such section 2603(1): 

16 Provided further, That the amount provided by this para17 graph is designated as an emergency requirement pursu18 ant to section 501 of H. Con. Res. 376 (109th Congress), 

19 as made applicable to the House of Representatives by sec20 tion 511(a)(4) of H. Res. 6 (110th Congress). 

21 For an additional amount to make payments under 

22 section 2604(e) of the Low-Income Home Energy Assist23 ance Act of 1981 (42 U.S.C. 8623(e)), $200,000,000: Pro24 vided, That the amount provided by this paragraph is des25 ignated as an emergency requirement pursuant to section 


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1 501 of H. Con. Res. 376 (109th Congress), as made appli2 cable to the House of Representatives by section 511(a)(4) 

3 of H. Res. 6 (110th Congress). 

4 OFFICE OF THE SECRETARY

5 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY

6 FUND

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Public Health and So9 cial Services Emergency Fund’’ to prepare for and re10 spond to an influenza pandemic, $969,650,000 to remain 

11 available until expended: Provided, That $870,000,000 

12 shall be for activities including the development and pur13 chase of vaccine, antivirals, necessary medical supplies, 

14 diagnostics, and other surveillance tools: Provided further, 

15 That products purchased with these funds may, at the dis16 cretion of the Secretary of Health and Human Services, 

17 be deposited in the Strategic National Stockpile: Provided 

18 further, That notwithstanding section 496(b) of the Public 

19 Health Service Act, funds may be used for the construc20 tion or renovation of privately owned facilities for the pro21 duction of pandemic vaccine and other biologicals, where 

22 the Secretary finds such a contract necessary to secure 

23 sufficient supplies of such vaccines or biologicals: Provided 

24 further, That funds appropriated herein may be trans25 ferred to other appropriation accounts of the Department 

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1 retary to be appropriate, to be used for the purposes speci2 fied in this sentence: Provided further, That not less than 

3 $34,650,000 shall be for the Centers for Disease Control 

4 and Prevention for laboratory diagnostics and analytical 

5 capabilities: Provided further, That the amount provided 

6 under this heading is designated as an emergency require7 ment pursuant to section 501 of H. Con. Res. 376 (109th 

8 Congress), as made applicable to the House of Representa9 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

10 COVERED COUNTERMEASURE PROCESS FUND

11 For carrying out section 319F–4 of the Public Health 

12 Service Act (42 U.S.C. 247d–6e) to compensate individ13 uals for injuries caused by H5N1 vaccine, in accordance 

14 with the declaration regarding avian influenza viruses 

15 issued by the Secretary of Health and Human Services 

16 on January 26, 2007, pursuant to section 319F–3(b) of 

17 such Act (42 U.S.C. 247d–6d(b)), $50,000,000 to remain 

18 available until expended: Provided, That the amount pro19 vided under this heading is designated as an emergency 

20 requirement pursuant to section 501 of H. Con. Res. 376 

21 (109th Congress), as made applicable to the House of 

22 Representatives by section 511(a)(4) of H. Res. 6 (110th 

23 Congress). 


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1 GENERAL PROVISIONS—THIS CHAPTER 

2 (INCLUDING TRANSFER OF FUNDS)

3 SEC. 4601. Section 20602 of the Continuing Appro4 priations Resolution, 2007 (division B of Public Law 109– 

5 289, as amended by Public Law 110–5) is amended by 

6 striking ‘‘of which no less than $5,000,000 shall be’’ and 

7 inserting the following: ‘‘of which $7,500,000 (together 

8 with an additional $7,000,000 which shall be transferred 

9 by the Pension Benefit Guaranty Corporation as an au10 thorized administrative cost) shall be available when need11 ed through September 30, 2008,’’. 

12 SEC. 4602. Section 20608(a) of the Continuing Ap13 propriations Resolution, 2007 (division B of Public Law 

14 109–289, as amended by Public Law 110–5) is amended 

15 by inserting ‘‘and which shall be available for obligation 

16 by the States through December 31, 2007,’’ after ‘‘Public 

17 Law 103–353,’’. 

18 SEC. 4603. Section 20625(b)(1) of the Continuing 

19 Appropriations Resolution, 2007 (division B of Public 

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

21 amended by— 

22 (1) striking ‘‘$7,172,994,000’’ and inserting 

23 ‘‘$7,176,431,000’’; 

24 (2) amending subparagraph (A) to read as fol25 lows: ‘‘(A) $5,454,824,000 shall be for basic grants 


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1 under section 1124 of the Elementary and Sec2 ondary Education Act of 1965 (ESEA), of which up 

3 to $3,437,000 shall be available to the Secretary of 

4 Education on October 1, 2006, to obtain annually 

5 updated educational-agency-level census poverty data 

6 from the Bureau of the Census;’’; and 

7 (3) amending subparagraph (C) to read as fol8 lows: ‘‘(C) not to exceed $2,352,000 may be avail9 able for section 1608 of the ESEA and for a clear10 inghouse on comprehensive school reform under part 

11 D of title V of the ESEA;’’. 

12 SEC. 4604. The provision in the first proviso under 

13 the heading ‘‘Rehabilitation Services and Disability Re14 search’’ in the Department of Education Appropriations 

15 Act, 2006, relating to alternative financing programs 

16 under section 4(b)(2)(D) of the Assistive Technology Act 

17 of 1998 shall not apply to funds appropriated by the Con18 tinuing Appropriations Resolution, 2007. 

19 CHAPTER 7 

20 LEGISLATIVE BRANCH 

21 PAYMENT TO WIDOWS AND HEIRS OF 

22 DECEASED MEMBERS OF CONGRESS 

23 For payment to Gloria W. Norwood, widow of Charles 

24 W. Norwood, Jr., late a Representative from the State of 

25 Georgia, $165,200. 


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1 ARCHITECT OF THE CAPITOL 

2 CAPITOL POWER PLANT 

3 For an additional amount for ‘‘Capitol Power Plant’’, 

4 $50,000,000, for asbestos abatement and other improve5 ments, to remain available until September 30, 2011: Pro6 vided, That the amount provided under this heading is 

7 designated as an emergency requirement pursuant to sec8 tion 501 of H. Con. Res. 376 (109th Congress), as made 

9 applicable to the House of Representatives by section 

10 511(a)(4) of H. Res. 6 (110th Congress). 

11 CHAPTER 8 

12 DEPARTMENT OF STATE 

13 INTERNATIONAL COMMISSIONS

14 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

15 UNITED STATES AND MEXICO

16 CONSTRUCTION

17 For an additional amount for ‘‘International Bound18 ary and Water Commission, United States and Mexico, 

19 Construction’’, $10,000,000, to remain available until ex20 pended, as authorized. 

21 GENERAL PROVISIONS—THIS CHAPTER 

22 SEC. 4801. (a) MIDDLE EAST FOUNDATION.—Sec23 tion 534(k) of the Foreign Operations, Export Financing, 

24 and Related Programs Appropriations Act, 2006 (Public 

25 Law 109–102) is amended, in the second proviso, by in26 serting after ‘‘subsection (b) of that section’’ the following: 


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1 ‘‘and the requirement that a majority of the members of 

2 the board of directors be United States citizens provided 

3 in subsection (d)(3)(B) of that section’’. 

4 SEC. 4802. Notwithstanding any provision of title I 

5 of division B of the Continuing Appropriations Resolution, 

6 2007 (division B of Public Law 109–289, as amended by 

7 Public Laws 109–369, 109–383, and 110–5), the dollar 

8 amount limitation of the first proviso under the heading, 

9 ‘‘Administration of Foreign Affairs, Diplomatic and Con10 sular Programs’’, in title IV of the Science, State, Justice, 

11 Commerce, and Related Agencies Appropriations Act, 

12 2006 (Public Law 109–108; 119 Stat. 2319) shall not 

13 apply to funds appropriated under such heading for fiscal 

14 year 2007. 

15 SEC. 4803. Amounts appropriated for fiscal year 

16 2007 for ‘‘Bilateral Economic Assistance—Department of 

17 the Treasury—Debt Restructuring’’ may be used to assist 

18 Liberia in retiring its debt arrearages to the International 

19 Monetary Fund, the International Bank for Reconstruc20 tion and Development, and the African Development 

21 Bank. 

22 CHAPTER 9 

23 SEC. 4901. Funds provided for the ‘‘National Trans24 portation Safety Board, Salaries and Expenses’’ in section 

25 21031 of the Continuing Appropriations Resolution, 2007 


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

2 Law 110–5) include amounts necessary to make lease pay3 ments due in fiscal year 2007 on an obligation incurred 

4 in 2001 under a capital lease. 

5 SEC. 4902. Section 21033 of the Continuing Appro6 priations Resolution, 2007 (division B of Public Law 109– 

7 289, as amended by Public Law 110–5) is amended by 

8 adding after the second proviso: ‘‘: Provided further, That 

9 paragraph (2) under such heading in Public Law 109– 

10 115 (119 Stat. 2441) shall be funded at $149,300,000, 

11 but additional section 8 tenant protection rental assistance 

12 costs may be funded in 2007 by using unobligated bal13 ances, notwithstanding the purposes for which such 

14 amounts were appropriated, including recaptures and car15 ryover, remaining from funds appropriated to the Depart16 ment of Housing and Urban Development under this 

17 heading, the heading ‘Annual Contributions for Assisted 

18 Housing’, the heading ‘Housing Certificate Fund’, and the 

19 heading ‘Project-Based Rental Assistance’ for fiscal year 

20 2006 and prior fiscal years: Provided further, That para21 graph (3) under such heading in Public Law 109–115 

22 (119 Stat. 2441) shall be funded at $47,500,000: Pro23 vided further, That paragraph (4) under such heading in 

24 Public Law 109–115 (119 Stat. 2441) shall be funded at 

25 $5,900,000: Provided further, That paragraph (5) under 


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1 such heading in Public Law 109–115 (119 Stat. 2441) 

2 shall be funded at $1,281,100,000, of which 

3 $1,251,100,000 shall be allocated for the calendar year 

4 2007 funding cycle on a pro rata basis to public housing 

5 agencies based on the amount public housing agencies 

6 were eligible to receive in calendar year 2006, and of which 

7 up to $30,000,000 shall be available to the Secretary to 

8 allocate to public housing agencies that need additional 

9 funds to administer their section 8 programs, with up to 

10 $20,000,000 to be for fees associated with section 8 tenant 

11 protection rental assistance’’. 

12 SEC. 4903. Section 21033 of the Continuing Appro13 priations Resolution, 2007 (division B of Public Law 109– 

14 289, as amended by Public Law 110–5) is amended (prior 

15 to amendment by the preceding section of this chapter) 

16 by adding after the third proviso: ‘‘: Provided further, That 

17 notwithstanding the previous proviso, except for applying 

18 the 2007 Annual Adjustment Factor and making any 

19 other specified adjustments, public housing agencies in the 

20 following categories shall receive renewal funding for cal21 endar year 2007 equal to the amounts, prior to prorations, 

22 such public housing agencies were eligible to receive in cal23 endar year 2006, prorated at the calendar year 2006 rate: 

24 (1) public housing agencies that would receive less funding 

25 under the previous proviso than they would receive under 


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1 this proviso and that are located in any area declared a 

2 major disaster under the Robert T. Stafford Disaster Re3 lief and Emergency Act (42 U.S.C. 1521 et seq.) with re4 spect to hurricanes that occurred in calendar years 2004 

5 and 2005; (2) public housing agencies participating in the 

6 Moving to Work Demonstration; (3) public housing agen7 cies that, during calendar year 2007 but prior to June 

8 1, 2007, are in receivership, or the Department of Hous9 ing and Urban Development has declared to be in breach 

10 of an Annual Contributions Contract; or (4) public hous11 ing agencies that overspent their allocation for calendar 

12 year 2006 and available housing assistance payments bal13 ance from calendar year 2005’’. 

14 SEC. 4904. Chapter 10 of title II of the Continuing 

15 Appropriations Resolution, 2007 (division B of Public 

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

17 amended by inserting after section 21041 the following 

18 new section: 

19 ‘‘SEC. 21041A. The provisions under the heading 

20 ‘Department of Housing and Urban Development, Office 

21 of Federal Housing Enterprise Oversight, Salaries and 

22 Expenses’ in title III of division A of Public Law 109– 

23 115 shall be applied to funds appropriated by this division 

24 by substituting ‘$67,568,000’ for ‘$60,000,000’.’’. 


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1 SEC. 4905. Section 21033 of the Continuing Appro2 priations Resolution, 2007 (division B of Public Law 109– 

3 289, as amended by Public Law 110–5) is amended (prior 

4 to amendment by the preceding sections of this chapter) 

5 by striking the sixth proviso. 

6 SEC. 4906. Section 232(b) of the Departments of 

7 Veterans Affairs and Housing and Urban Development, 

8 and Independent Agencies Appropriations Act, 2001 

9 (Public Law 106–377) is amended to read as follows: 

10 ‘‘(b) APPLICABILITY.—In the case of any dwelling 

11 unit that, upon the date of the enactment of this Act, is 

12 assisted under a housing assistance payment contract 

13 under section 8(o)(13) as in effect before such enactment, 

14 or under section 8(d)(2) of the United States Housing Act 

15 of 1937 (42 U.S.C. 1437f(d)(2)) as in effect before the 

16 enactment of the Quality Housing and Work Responsi17 bility Act of 1998 (title V of Public Law 105–276), assist18 ance may be renewed or extended under such section 

19 8(o)(13), as amended by subsection (a), provided that the 

20 initial contract term and rent of such renewed or extended 

21 assistance shall be determined pursuant to subparagraphs 

22 (F) and (H), and subparagraphs (C) and (D) of such sec23 tion shall not apply to such extensions or renewals.’’. 


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1 GENERAL PROVISION—THIS ACT 

2 SEC. 4910. No part of any appropriation contained 

3 in this Act shall remain available for obligation beyond 

4 the current fiscal year unless expressly so provided herein. 

5 TITLE V—CONTRACTING REFORM 

6 SEC. 5001. MINIMIZING SOLE-SOURCE CONTRACTS. 

7 (a) PLANS REQUIRED.—Subject to subsection (c), 

8 the head of each executive agency covered by title III of 

9 the Federal Property and Administrative Services Act of 

10 1949 (41 U.S.C. 251 et seq.) and the head of each agency 

11 covered by chapter 137 of title 10, United States Code, 

12 shall develop and implement a plan to minimize the use 

13 of contracts entered into using procedures other than com14 petitive procedures by the agency concerned. The plan 

15 shall contain measurable goals and shall be completed and 

16 submitted to the Committee on Oversight and Government 

17 Reform of the House of Representatives and the Com18 mittee on Homeland Security and Governmental Affairs 

19 of the Senate, the Committees on Appropriations of the 

20 House of Representatives and the Senate, with a copy pro21 vided to the Comptroller General, not later than 1 year 

22 after the date of the enactment of this Act. 

23 (b) COMPTROLLER GENERAL REVIEW.—The Comp24 troller General shall review the plans provided under sub25 section (a) and submit a report to Congress on the plans 


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1 not later than 18 months after the date of the enactment 

2 of this Act. 

3 (c) REQUIREMENT LIMITED TO CERTAIN AGEN4 CIES.—The requirement of subsection (a) shall apply only 

5 to those agencies that awarded contracts in a total amount 

6 of at least $1,000,000,000 in the fiscal year preceding the 

7 fiscal year in which the report is submitted. 

8 SEC. 5002. MINIMIZING COST-REIMBURSEMENT TYPE CON9 TRACTS. 

10 (a) PLANS REQUIRED.—Subject to subsection (c), 

11 the head of each executive agency covered by title III of 

12 the Federal Property and Administrative Services Act of 

13 1949 (41 U.S.C. 251 et seq.) and the head of each agency 

14 covered by chapter 137 of title 10, United States Code, 

15 shall develop and implement a plan to minimize the use 

16 of cost-reimbursement type contracts by the agency con17 cerned. The plan shall contain measurable goals and shall 

18 be completed and submitted to the Committee on Over19 sight and Government Reform of the House of Represent20 atives and the Committee on Homeland Security and Gov21 ernmental Affairs of the Senate, the Committees on Ap22 propriations of the House of Representatives and the Sen23 ate, with a copy provided to the Comptroller General, not 

24 later than 1 year after the date of the enactment of this 

25 Act. 


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1 (b) COMPTROLLER GENERAL REVIEW.—The Comp2 troller General shall review the plans provided under sub3 section (a) and submit a report to Congress on the plans 

4 not later than 18 months after the date of the enactment 

5 of this Act. 

6 (c) REQUIREMENT LIMITED TO CERTAIN AGEN7 CIES.—The requirement of subsection (a) shall apply only 

8 to those agencies that awarded contracts in a total amount 

9 of at least $1,000,000,000 in the fiscal year preceding the 

10 fiscal year in which the report is submitted. 

11 SEC. 5003. PUBLIC DISCLOSURE OF JUSTIFICATION AND 

12 APPROVAL DOCUMENTS FOR NONCOMPETI13 TIVE CONTRACTS. 

14 (a) CIVILIAN AGENCY CONTRACTS.—Section 303 of 

15 the Federal Property and Administrative Services Act of 

16 1949 (41 U.S.C. 253) is amended by adding at the end 

17 the following new subsection: 

18 ‘‘(j)(1) In the case of a procurement permitted by 

19 subsection (c), the head of an executive agency shall make 

20 publicly available, within 14 days after the award of the 

21 contract, the documents containing the justification and 

22 approval required by subsection (f)(1) with respect to the 

23 procurement. 


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1 ‘‘(2) The documents shall be made available on the 

2 website of the agency and through the Federal Procure3 ment Data System. 

4 ‘‘(3) This subsection does not require the public avail5 ability of information that is exempt from public disclosure 

6 under section 552(b) of title 5, United States Code.’’. 

7 (b) DEFENSE AGENCY CONTRACTS.—Section 2304 

8 of title 10, United States Code, is amended by adding at 

9 the end the following new subsection: 

10 ‘‘(l)(1) In the case of a procurement permitted by 

11 subsection (c), the head of an agency shall make publicly 

12 available, within 14 days after the award of the contract, 

13 the documents containing the justification and approval 

14 required by subsection (f)(1) with respect to the procure15 ment. 

16 ‘‘(2) The documents shall be made available on the 

17 website of the agency and through the Federal Procure18 ment Data System. 

19 ‘‘(3) This subsection does not require the public avail20 ability of information that is exempt from public disclosure 

21 under section 552(b) of title 5, United States Code.’’. 

22 SEC. 5004. DISCLOSURE OF GOVERNMENT CONTRACTOR 

23 OVERCHARGES. 

24 (a) QUARTERLY REPORT TO CONGRESS.— 


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1 (1) The head of each Federal agency or depart2 ment shall submit to the chairman and ranking 

3 member of each committee specified in paragraph 

4 (2) on a quarterly basis a report that includes the 

5 following: 

6 (A) A list of audits or other reports issued 

7 during the applicable quarter that describe con8 tractor costs in excess of $1,000,000 that have 

9 been identified as unjustified, unsupported, 

10 questioned, or unreasonable under any contract, 

11 task or delivery order, or subcontract. 

12 (B) The specific amounts of costs identi13 fied as unjustified, unsupported, questioned, or 

14 unreasonable and the percentage of their total 

15 value of the contract, task or delivery order, or 

16 subcontract. 

17 (C) A list of audits or other reports issued 

18 during the applicable quarter that identify sig19 nificant or substantial deficiencies in the per20 formance of any contractor or in any business 

21 system of any contractor under any contract, 

22 task or delivery order, or subcontract. 

23 (2) The report described in paragraph (1) shall 

24 be submitted to the Committee on Oversight and 

25 Government Reform of the House of RepresentaVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 tives, the Committee on Homeland Security and 

2 Governmental Affairs of the Senate, the Committees 

3 on Appropriations of the House of Representatives 

4 and the Senate, and other committees of jurisdic5 tion. 

6 (3) Paragraph (1) shall not apply to an agency 

7 or department with respect to a calendar quarter if 

8 no audits or other reports described in paragraph 

9 (1) were issued during that quarter. 

10 (b) SUBMISSION OF INDIVIDUAL AUDITS.—The head 

11 of each Federal agency or department shall provide, within 

12 14 days after a request in writing by the chairman or 

13 ranking member of any of the committees described in 

14 subsection (a)(2), a full and unredacted copy of any audit 

15 or other report described in subsection (a)(1). 

16 TITLE VI—ELIMINATION OF SCHIP SHORTFALL 

17 DEPARTMENT OF HEALTH AND HUMAN 

18 SERVICES 

19 CENTERS FOR MEDICARE AND MEDICAID SERVICES

20 STATE CHILDREN’S HEALTH INSURANCE FUND

21 For an additional amount to provide additional allot22 ments to remaining shortfall States under section 

23 2104(h)(4) of the Social Security Act, as inserted by sec24 tion 6001, such sums as may be necessary, but not to ex25 ceed $750,000,000 for fiscal year 2007, to remain availVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 able until expended: Provided, That the amount provided 

2 under this heading is designated as an emergency require3 ment pursuant to section 501 of H. Con. Res. 376 (109th 

4 Congress), as made applicable to the House of Representa5 tives by section 511(a)(4) of H. Res. 6 (110th Congress). 

6 SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUND7 ING SHORTFALLS FOR FISCAL YEAR 2007. 

8 (a) ELIMINATION OF REMAINDER OF FUNDING

9 SHORTFALLS, TIERED MATCH, AND OTHER LIMITATION

10 ON EXPENDITURES.—Section 2104(h) of the Social Secu11 rity Act (42 U.S.C. 1397dd(h)), as added by section 

12 201(a) of the National Institutes of Health Reform Act 

13 of 2006 (Public Law 109–482), is amended— 

14 (1) in the heading for paragraph (2), by strik15 ing ‘‘REMAINDER OF REDUCTION’’ and inserting 

16 ‘‘PART’’; and 

17 (2) by striking paragraph (4) and inserting the 

18 following: 

19 ‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE20 MAINDER OF FISCAL YEAR 2007 FUNDING SHORT21 FALLS.— 

22 ‘‘(A) IN GENERAL.—From the amounts 

23 provided in advance in appropriations Acts, the 

24 Secretary shall allot to each remaining shortfall 

25 State described in subparagraph (B) such 


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1 amount as the Secretary determines will elimi2 nate the estimated shortfall described in such 

3 subparagraph for the State for fiscal year 2007. 

4 ‘‘(B) REMAINING SHORTFALL STATE DE5 SCRIBED.—For purposes of subparagraph (A), 

6 a remaining shortfall State is a State with a 

7 State child health plan approved under this title 

8 for which the Secretary estimates, on the basis 

9 of the most recent data available to the Sec10 retary as of the date of the enactment of this 

11 paragraph, that the projected Federal expendi12 tures under such plan for the State for fiscal 

13 year 2007 will exceed the sum of— 

14 ‘‘(i) the amount of the State’s allot15 ments for each of fiscal years 2005 and 

16 2006 that will not be expended by the end 

17 of fiscal year 2006; 

18 ‘‘(ii) the amount of the State’s allot19 ment for fiscal year 2007; and 

20 ‘‘(iii) the amounts, if any, that are to 

21 be redistributed to the State during fiscal 

22 year 2007 in accordance with paragraphs 

23 (1) and (2).’’. 


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1 (b) CONFORMING AMENDMENTS.—Section 2104(h) 

2 of such Act (42 U.S.C. 1397dd(h)) (as so added), is 

3 amended— 

4 (1) in paragraph (1)(B), by striking ‘‘subject to 

5 paragraph (4)(B) and’’; 

6 (2) in paragraph (2)(B), by striking ‘‘subject to 

7 paragraph (4)(B) and’’; 

8 (3) in paragraph (5)(A), by striking ‘‘and (3)’’ 

9 and inserting ‘‘(3), and (4)’’; and 

10 (4) in paragraph (6), by striking ‘‘and (3)’’ and 

11 inserting ‘‘(3), and (4)’’. 

12 TITLE VII—MINIMUM WAGE INCREASE AND 

13 SMALL BUSINESS TAX RELIEF 

14 CHAPTER 1 

15 SEC. 7101. SHORT TITLE. 

16 This chapter may be cited as the ‘‘Fair Minimum 

17 Wage Act of 2007’’. 

18 SEC. 7102. MINIMUM WAGE. 

19 (a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 

20 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 

21 to read as follows: 

22 ‘‘(1) except as otherwise provided in this sec23 tion, not less than— 


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1 ‘‘(A) $5.85 an hour, beginning on the 60th 

2 day after the date of enactment of the Fair 

3 Minimum Wage Act of 2007; 

4 ‘‘(B) $6.55 an hour, beginning 12 months 

5 after that 60th day; and 

6 ‘‘(C) $7.25 an hour, beginning 24 months 

7 after that 60th day;’’. 

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

9 subsection (a) shall take effect 60 days after the date of 

10 enactment of this Act. 

11 SEC. 7103. APPLICABILITY OF MINIMUM WAGE TO THE 

12 COMMONWEALTH OF THE NORTHERN MAR13 IANA ISLANDS. 

14 (a) IN GENERAL.—Section 6 of the Fair Labor 

15 Standards Act of 1938 (29 U.S.C. 206) shall apply to the 

16 Commonwealth of the Northern Mariana Islands. 

17 (b) TRANSITION.—Notwithstanding subsection (a), 

18 the minimum wage applicable to the Commonwealth of the 

19 Northern Mariana Islands under section 6(a)(1) of the 

20 Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) 

21 shall be— 

22 (1) $3.55 an hour, beginning on the 60th day 

23 after the date of enactment of this Act; and 

24 (2) increased by $0.50 an hour (or such lesser 

25 amount as may be necessary to equal the minimum 


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1 wage under section 6(a)(1) of such Act), beginning 

2 6 months after the date of enactment of this Act 

3 and every 6 months thereafter until the minimum 

4 wage applicable to the Commonwealth of the North5 ern Mariana Islands under this subsection is equal 

6 to the minimum wage set forth in such section. 

7 SEC. 7104. APPLICABILITY OF MINIMUM WAGE TO AMER8 ICAN SAMOA. 

9 (a) APPLICABILITY.— 

10 (1) IN GENERAL.—Section 6 of the Fair Labor 

11 Standards Act of 1938 (29 U.S.C. 206) shall apply 

12 to American Samoa. 

13 (2) CONFORMING AMENDMENT.—Section 6(a) 

14 of the Fair Labor Standards Act of 1938 (29 U.S.C. 

15 206(a)) is amended by striking paragraph (3) and 

16 redesignating paragraphs (4) and (5) as paragraphs 

17 (3) and (4), respectively. 

18 (b) TRANSITION.— 

19 (1) IN GENERAL.—Notwithstanding subsection 

20 (a), the minimum wage applicable to American 

21 Samoa under section 6(a)(1) of the Fair Labor 

22 Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 

23 be— 

24 (A) $3.55 an hour, beginning on the 60th 

25 day after the date of enactment of this Act; and 


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1 (B) increased by $0.50 an hour (or such 

2 lesser amount as may be necessary to equal the 

3 minimum wage under section 6(a)(1) of such 

4 Act), beginning 6 months after the date of en5 actment of this Act and every 6 months there6 after until the minimum wage applicable to 

7 American Samoa under this paragraph is equal 

8 to the minimum wage set forth in such section. 

9 (2) SPECIAL RULE.—Notwithstanding para10 graph (1), if an employee is employed in an industry 

11 in American Samoa that, on the date of enactment 

12 of this Act, is required to pay a minimum wage rate 

13 under section 697 of title 29, Code of Federal Regu14 lations, that is higher than the minimum wage rate 

15 required under paragraph (1)(A), the minimum 

16 wage applicable to such employee shall be— 

17 (A) the minimum wage rate required for 

18 such an industry under such section on the date 

19 of enactment of this Act; and 

20 (B) increased by $0.50 an hour (or such 

21 lesser amount as may be necessary to equal the 

22 minimum wage under section 6(a)(1) of such 

23 Act), beginning 6 months after the date of en24 actment of this Act and every 6 months there25 after until the minimum wage applicable to 


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1 American Samoa under this subsection is equal 

2 to the minimum wage set forth in such section. 

3 CHAPTER 2 

4 SEC. 7201. SHORT TITLE; AMENDMENT OF 1986 CODE; 

5 TABLE OF CONTENTS. 

6 (a) SHORT TITLE.—This chapter may be cited as the 

7 ‘‘Small Business Tax Relief Act of 2007’’. 

8 (b) AMENDMENT OF 1986 CODE.—Except as other9 wise expressly provided, whenever in this chapter an 

10 amendment or repeal is expressed in terms of an amend11 ment to, or repeal of, a section or other provision, the ref12 erence shall be considered to be made to a section or other 

13 provision of the Internal Revenue Code of 1986. 

14 (c) TABLE OF CONTENTS.—The table of contents of 

15 this chapter is as follows: 

Sec. 7201. Short title; amendment of 1986 Code; table of contents. 

Sec. 7202. Extension and modification of work opportunity tax credit. 

Sec. 7203. Extension and increase of expensing for small business. 

Sec. 7204. Determination of credit for certain taxes paid with respect to employee cash tips. 

Sec. 7205. 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. 7206. Family business tax simplification. 

Sec. 7207. Denial of lowest capital gains rate for certain dependents. 

Sec. 7208. Suspension of certain penalties and interest. 

Sec. 7209. Time for payment of corporate estimated taxes. 

16 SEC. 7202. EXTENSION AND MODIFICATION OF WORK OP17 PORTUNITY TAX CREDIT. 

18 (a) EXTENSION.—Section 51(c)(4)(B) (relating to 

19 termination) is amended by striking ‘‘2007’’ and inserting 

20 ‘‘2008’’. 


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1 (b) INCREASE IN MAXIMUM AGE FOR DESIGNATED

2 COMMUNITY RESIDENTS.— 

3 (1) IN GENERAL.—Paragraph (5) of section 

4 51(d) is amended to read as follows: 

5 ‘‘(5) DESIGNATED COMMUNITY RESIDENTS.— 

6 ‘‘(A) IN GENERAL.—The term ‘designated 

7 community resident’ means any individual who 

8 is certified by the designated local agency— 

9 ‘‘(i) as having attained age 18 but not 

10 age 40 on the hiring date, and 

11 ‘‘(ii) as having his principal place of 

12 abode within an empowerment zone, enter13 prise community, or renewal community. 

14 ‘‘(B) INDIVIDUAL MUST CONTINUE TO RE15 SIDE IN ZONE OR COMMUNITY.—In the case of 

16 a designated community resident, the term 

17 ‘qualified wages’ shall not include wages paid or 

18 incurred for services performed while the indi19 vidual’s principal place of abode is outside an 

20 empowerment zone, enterprise community, or 

21 renewal community.’’. 

22 (2) CONFORMING AMENDMENT.—Subparagraph 

23 (D) of section 51(d)(1) is amended to read as fol24 lows: 

25 ‘‘(D) a designated community resident,’’. 


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1 (c) CLARIFICATION OF TREATMENT OF INDIVIDUALS

2 UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) 

3 of section 51(d)(6) (relating to vocational rehabilitation 

4 referral) is amended by striking ‘‘or’’ at the end of clause 

5 (i), by striking the period at the end of clause (ii) and 

6 inserting ‘‘, or’’, and by adding at the end the following 

7 new clause: 

8 ‘‘(iii) an individual work plan devel9 oped and implemented by an employment 

10 network pursuant to subsection (g) of sec11 tion 1148 of the Social Security Act with 

12 respect to which the requirements of such 

13 subsection are met.’’. 

14 (d) TREATMENT OF DISABLED VETERANS UNDER

15 THE WORK OPPORTUNITY TAX CREDIT.— 

16 (1) DISABLED VETERANS TREATED AS MEM17 BERS OF TARGETED GROUP.— 

18 (A) IN GENERAL.—Subparagraph (A) of 

19 section 51(d)(3) (relating to qualified veteran) 

20 is amended by striking ‘‘agency as being a 

21 member of a family’’ and all that follows and 

22 inserting: 

23 ‘‘agency as— 

24 ‘‘(i) being a member of a family re25 ceiving assistance under a food stamp proVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6401 E:\BILLS\H1591.PP H1591

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1 gram under the Food Stamp Act of 1977 

2 for at least a 3-month period ending dur3 ing the 12-month period ending on the hir4 ing date, or 

5 ‘‘(ii) entitled to compensation for a 

6 service-connected disability, and— 

7 ‘‘(I) having a hiring date which is 

8 not more that 1 year after having 

9 been discharged or released from ac10 tive duty in the Armed Forces of the 

11 United States, or 

12 ‘‘(II) having aggregate periods of 

13 unemployment during the 1-year pe14 riod ending on the hiring date which 

15 equal or exceed 6 months.’’. 

16 (B) DEFINITIONS.—Paragraph (3) of sec17 tion 51(d) is amended by adding at the end the 

18 following new subparagraph: 

19 ‘‘(C) OTHER DEFINITIONS.—For purposes 

20 of subparagraph (A), the terms ‘compensation’ 

21 and ‘service-connected’ have the meanings given 

22 such terms under section 101 of title 38, 

23 United States Code.’’. 


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1 (2) INCREASE IN AMOUNT OF WAGES TAKEN

2 INTO ACCOUNT FOR DISABLED VETERANS.—Para3 graph (3) of section 51(b) is amended— 

4 (A) by inserting ‘‘($12,000 per year in the 

5 case of any individual who is a qualified veteran 

6 by reason of subsection (d)(3)(A)(ii))’’ before 

7 the period at the end, and 

8 (B) by striking ‘‘ONLY FIRST $6,000 OF’’ in 

9 the heading and inserting ‘‘LIMITATION ON’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to individuals who begin work for 

12 the employer after the date of the enactment of this Act. 

13 SEC. 7203. EXTENSION AND INCREASE OF EXPENSING FOR 

14 SMALL BUSINESS. 

15 (a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), 

16 (c)(2), and (d)(1)(A)(ii) of section 179 (relating to election 

17 to expense certain depreciable business assets) are each 

18 amended by striking ‘‘2010’’ and inserting ‘‘2011’’. 

19 (b) INCREASE IN LIMITATIONS.—Subsection (b) of 

20 section 179 is amended— 

21 (1) by striking ‘‘$100,000 in the case of taxable 

22 years beginning after 2002’’ in paragraph (1) and 

23 inserting ‘‘$125,000 in the case of taxable years be24 ginning after 2006’’, and 


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1 (2) by striking ‘‘$400,000 in the case of taxable 

2 years beginning after 2002’’ in paragraph (2) and 

3 inserting ‘‘$500,000 in the case of taxable years be4 ginning after 2006’’. 

5 (c) INFLATION ADJUSTMENT.—Subparagraph (A) of 

6 section 179(b)(5) is amended— 

7 (1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 

8 (2) by striking ‘‘$100,000 and $400,000’’ and 

9 inserting ‘‘$125,000 and $500,000’’, and 

10 (3) by striking ‘‘2002’’ in clause (ii) and insert11 ing ‘‘2006’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2006. 

15 SEC. 7204. DETERMINATION OF CREDIT FOR CERTAIN 

16 TAXES PAID WITH RESPECT TO EMPLOYEE 

17 CASH TIPS. 

18 (a) IN GENERAL.—Subparagraph (B) of section 

19 45B(b)(1) is amended by inserting ‘‘as in effect on Janu20 ary 1, 2007, and’’ before ‘‘determined without regard to’’. 

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

22 this section shall apply to tips received for services per23 formed after December 31, 2006. 


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1 SEC. 7205. WAIVER OF INDIVIDUAL AND CORPORATE AL2 TERNATIVE MINIMUM TAX LIMITS ON WORK 

3 OPPORTUNITY CREDIT AND CREDIT FOR 

4 TAXES PAID WITH RESPECT TO EMPLOYEE 

5 CASH TIPS. 

6 (a) ALLOWANCE AGAINST ALTERNATIVE MINIMUM

7 TAX.—Subparagraph (B) of section 38(c)(4) is amended 

8 by striking ‘‘and’’ at the end of clause (i), by inserting 

9 a comma at the end of clause (ii), and by adding at the 

10 end the following new clauses: 

11 ‘‘(iii) the credit determined under sec12 tion 45B, and 

13 ‘‘(iv) the credit determined under sec14 tion 51.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to credits determined under sec17 tions 45B and 51 of the Internal Revenue Code of 1986 

18 in taxable years beginning after December 31, 2006, and 

19 to carrybacks of such credits. 

20 SEC. 7206. FAMILY BUSINESS TAX SIMPLIFICATION. 

21 (a) IN GENERAL.—Section 761 (defining terms for 

22 purposes of partnerships) is amended by redesignating 

23 subsection (f) as subsection (g) and by inserting after sub24 section (e) the following new subsection: 

25 ‘‘(f) QUALIFIED JOINT VENTURE.— 


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1 ‘‘(1) IN GENERAL.—In the case of a qualified 

2 joint venture conducted by a husband and wife who 

3 file a joint return for the taxable year, for purposes 

4 of this title— 

5 ‘‘(A) such joint venture shall not be treat6 ed as a partnership, 

7 ‘‘(B) all items of income, gain, loss, deduc8 tion, and credit shall be divided between the 

9 spouses in accordance with their respective in10 terests in the venture, and 

11 ‘‘(C) each spouse shall take into account 

12 such spouse’s respective share of such items as 

13 if they were attributable to a trade or business 

14 conducted by such spouse as a sole proprietor. 

15 ‘‘(2) QUALIFIED JOINT VENTURE.—For pur16 poses of paragraph (1), the term ‘qualified joint ven17 ture’ means any joint venture involving the conduct 

18 of a trade or business if— 

19 ‘‘(A) the only members of such joint ven20 ture are a husband and wife, 

21 ‘‘(B) both spouses materially participate 

22 (within the meaning of section 469(h) without 

23 regard to paragraph (5) thereof) in such trade 

24 or business, and 


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1 ‘‘(C) both spouses elect the application of 

2 this subsection.’’. 

3 (b) NET EARNINGS FROM SELF-EMPLOYMENT.— 

4 (1) Subsection (a) of section 1402 (defining net 

5 earnings from self-employment) is amended by strik6 ing ‘‘, and’’ at the end of paragraph (15) and insert7 ing a semicolon, by striking the period at the end of 

8 paragraph (16) and inserting ‘‘; and’’, and by insert9 ing after paragraph (16) the following new para10 graph: 

11 ‘‘(17) notwithstanding the preceding provisions 

12 of this subsection, each spouse’s share of income or 

13 loss from a qualified joint venture shall be taken 

14 into account as provided in section 761(f) in deter15 mining net earnings from self-employment of such 

16 spouse.’’. 

17 (2) Subsection (a) of section 211 of the Social 

18 Security Act (defining net earnings from self-em19 ployment) is amended by striking ‘‘and’’ at the end 

20 of paragraph (14), by striking the period at the end 

21 of paragraph (15) and inserting ‘‘; and’’, and by in22 serting after paragraph (15) the following new para23 graph: 

24 ‘‘(16) Notwithstanding the preceding provisions 

25 of this subsection, each spouse’s share of income or 


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1 loss from a qualified joint venture shall be taken 

2 into account as provided in section 761(f) of the In3 ternal Revenue Code of 1986 in determining net 

4 earnings from self-employment of such spouse.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2006. 

8 SEC. 7207. DENIAL OF LOWEST CAPITAL GAINS RATE FOR 

9 CERTAIN DEPENDENTS. 

10 (a) IN GENERAL.—Subsection (h) of section 1 is 

11 amended by adding at the end the following new para12 graph: 

13 ‘‘(12) CERTAIN INDIVIDUALS NOT ELIGIBLE

14 FOR LOWEST RATE.— 

15 ‘‘(A) IN GENERAL.—In the case of an indi16 vidual described in subparagraph (B)— 

17 ‘‘(i) the amount determined under 

18 paragraph (1)(A)(ii)(II) shall not be less 

19 than the amount of taxable income which 

20 would (without regard to this subsection) 

21 be taxed at a rate below 15 percent, and 

22 ‘‘(ii) the sum of the amounts deter23 mined under subparagraphs (B) and (C) of 

24 paragraph (1) shall be an amount equal to 

25 the rate of tax specified in paragraph 


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1 (1)(C) multiplied by so much of the ad2 justed net capital gain (or, if less, taxable 

3 income) as exceeds the excess (if any) of— 

4 ‘‘(I) the amount of taxable in5 come which would (without regard to 

6 this subsection) be taxed at a rate 

7 below 15 percent, over 

8 ‘‘(II) the taxable income reduced 

9 by the adjusted net capital gain. 

10 ‘‘(B) INDIVIDUALS TO WHOM PARAGRAPH

11 APPLIES.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

13 this paragraph, an individual is described 

14 in this subparagraph if— 

15 ‘‘(I) such individual meets the 

16 age requirements of section 152(c)(3) 

17 (determined without regard to sub18 paragraph (B) thereof), and 

19 ‘‘(II) such individual’s earned in20 come (as defined in section 911(d)(2)) 

21 for the taxable year does not exceed 

22 one-half of such individual’s support 

23 (within the meaning of section 152) 

24 for such taxable year. 


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1 ‘‘(ii) SPECIAL RULES FOR JOINT RE2 TURNS.—In the case of a joint return— 

3 ‘‘(I) the taxpayer and the tax4 payer’s spouse shall be treated as a 

5 single individual for purposes of ap6 plying subclause (II) of clause (i), and 

7 ‘‘(II) the taxpayer shall be treat8 ed as an individual described in this 

9 subparagraph only if the taxpayer and 

10 the taxpayer’s spouse are described in 

11 clause (i) (determined after applica12 tion of subclause (I)).’’. 

13 (b) ALTERNATIVE MINIMUM TAX.—Section 55 is 

14 amended by adding at the end the following new sub15 section: 

16 ‘‘(f) CERTAIN INDIVIDUALS NOT ELIGIBLE FOR

17 LOWEST RATE.—In the case of an individual described in 

18 section 1(h)(12)(B), no amount shall be determined under 

19 subsection (b)(3)(B).’’. 

20 (c) COORDINATION WITH SUNSET OF PROVISIONS OF

21 THE JOBS AND GROWTH TAX RELIEF RECONCILIATION

22 ACT OF 2003.—Subparagraph (A) of section 1(h)(12), as 

23 added by this section, is amended by striking ‘‘and’’ at 

24 the end of clause (i), by striking the period at the end 


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1 of clause (ii) and inserting ‘‘, and’’, and by adding at the 

2 end the following new clause: 

3 ‘‘(iii) no amount of qualified 5-year 

4 gain shall be taken into account under sub5 paragraph (A) of paragraph (2) (as in ef6 fect after the application of section 303 of 

7 the Jobs and Growth Tax Relief Reconcili8 ation Act of 2003).’’. 

9 (d) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this section 

12 shall apply to taxable years beginning after Decem13 ber 31, 2006. 

14 (2) SUNSET OF JGTRRA.—The amendment 

15 made by subsection (c) shall apply to taxable years 

16 beginning after the date specified in section 303 of 

17 the Jobs and Growth Tax Relief Reconciliation Act 

18 of 2003. 

19 SEC. 7208. SUSPENSION OF CERTAIN PENALTIES AND IN20 TEREST. 

21 (a) IN GENERAL.—Paragraphs (1)(A) and (3)(A) of 

22 section 6404(g) are each amended by striking ‘‘18-month 

23 period’’ and inserting ‘‘22-month period’’. 

24 (b) EFFECTIVE DATE.—The amendments made by 

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1 retary of the Treasury, or his delegate, after the date 

2 which is 6 months after the date of the enactment of this 

3 Act. 

4 SEC. 7209. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

5 TAXES. 

6 Subparagraph (B) of section 401(1) of the Tax In7 crease Prevention and Reconciliation Act of 2005 is 

8 amended by striking ‘‘106.25 percent’’ and inserting 

9 ‘‘112.75 percent’’. 

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

11 Veterans’ Health, and Iraq Accountability Act, 2007’’. 

12 That the following sums are appropriated, out of any 

13 money in the Treasury not otherwise appropriated, for the 

14 fiscal year ending September 30, 2007, and for other pur15 poses, namely: 

16 TITLE I 

17 GLOBAL WAR ON TERROR SUPPLEMENTAL 

18 APPROPRIATIONS 

19 CHAPTER 1 

20 DEPARTMENT OF AGRICULTURE 

21 FOREIGN AGRICULTURAL SERVICE

22 PUBLIC LAW 480 TITLE II GRANTS

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

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

25 recoverable, and unrecovered prior years’ costs, including 


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1 interest thereon, under the Agricultural Trade Development 

2 and Assistance Act of 1954, for commodities supplied in 

3 connection with dispositions abroad under title II of said 

4 Act, $475,000,000, to remain available until expended. 

5 GENERAL PROVISION—THIS CHAPTER 

6 SEC. 1101. There is hereby appropriated $82,000,000 

7 to reimburse the Commodity Credit Corporation for the re8 lease of eligible commodities under section 302(f)(2)(A) of 

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

10 1736f–1): Provided, That any such funds made available 

11 to reimburse the Commodity Credit Corporation shall only 

12 be used to replenish the Bill Emerson Humanitarian Trust. 

13 CHAPTER 2 

14 DEPARTMENT OF JUSTICE 

15 GENERAL ADMINISTRATION

16 OFFICE OF THE INSPECTOR GENERAL

17 For an additional amount for ‘‘Office of the Inspector 

18 General’’, $500,000, to remain available until September 

19 30, 2008. 

20 LEGAL ACTIVITIES

21 SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

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

23 General Legal Activities’’, $4,093,000, to remain available 

24 until September 30, 2008. 


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1 SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

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

3 United States Attorneys’’, $12,500,000, to remain available 

4 until September 30, 2008. 

5 UNITED STATES MARSHALS SERVICE

6 SALARIES AND EXPENSES, UNITED STATES MARSHALS

7 SERVICE

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

9 United States Marshals Service’’, $32,500,000, to remain 

10 available until September 30, 2008: Provided, That of the 

11 amounts made available in this Act for ‘‘Educational and 

12 Cultural Exchange Programs’’, $15,000,000 is rescinded. 

13 NATIONAL SECURITY DIVISION

14 SALARIES AND EXPENSES

15 For an additional amount for ‘‘Salaries and Ex16 penses,’’ $1,736,000, to remain available until September 

17 30, 2008. 

18 FEDERAL BUREAU OF INVESTIGATION

19 SALARIES AND EXPENSES

20 For an additional amount for ‘‘Salaries and Ex21 penses’’, $348,260,000, of which $338,260,000 is to remain 

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

23 remain available until expended to implement corrective ac24 tions in response to the findings and recommendations in 

25 the Department of Justice Office of Inspector General report 


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

2 Use of National Security Letters’’. 

3 DRUG ENFORCEMENT ADMINISTRATION

4 SALARIES AND EXPENSES

5 For an additional amount for ‘‘Salaries and Ex6 penses’’, $25,100,000, to remain available until September 

7 30, 2008. 

8 BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND

9 EXPLOSIVES

10 SALARIES AND EXPENSES

11 For an additional amount for ‘‘Salaries and Ex12 penses’’, $4,000,000, to remain available until September 

13 30, 2008. 

14 FEDERAL PRISON SYSTEM

15 SALARIES AND EXPENSES

16 For an additional amount for ‘‘Salaries and Ex17 penses’’, $17,000,000, to remain available until September 

18 30, 2008. 

19 CHAPTER 3 

20 DEPARTMENT OF DEFENSE—MILITARY 

21 MILITARY PERSONNEL 

22 MILITARY PERSONNEL, ARMY

23 For an additional amount for ‘‘Military Personnel, 

24 Army’’, $8,870,270,000. 


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1 MILITARY PERSONNEL, NAVY

2 For an additional amount for ‘‘Military Personnel, 

3 Navy’’, $1,100,410,000. 

4 MILITARY PERSONNEL, MARINE CORPS

5 For an additional amount for ‘‘Military Personnel, 

6 Marine Corps’’, $1,495,827,000. 

7 MILITARY PERSONNEL, AIR FORCE

8 For an additional amount for ‘‘Military Personnel, 

9 Air Force’’, $1,218,587,000. 

10 RESERVE PERSONNEL, ARMY

11 For an additional amount for ‘‘Reserve Personnel, 

12 Army’’, $147,244,000. 

13 RESERVE PERSONNEL, NAVY

14 For an additional amount for ‘‘Reserve Personnel, 

15 Navy’’, $77,523,000. 

16 RESERVE PERSONNEL, AIR FORCE

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

18 Force’’, $9,073,000. 

19 NATIONAL GUARD PERSONNEL, ARMY

20 For an additional amount for ‘‘National Guard Per21 sonnel, Army’’, $474,978,000. 

22 NATIONAL GUARD PERSONNEL, AIR FORCE

23 For an additional amount for ‘‘National Guard Per24 sonnel, Air Force’’, $41,533,000. 


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1 OPERATION AND MAINTENANCE 

2 OPERATION AND MAINTENANCE, ARMY

3 For an additional amount for ‘‘Operation and Mainte4 nance, Army’’, $20,373,379,000. 

5 OPERATION AND MAINTENANCE, NAVY

6 (INCLUDING TRANSFER OF FUNDS)

7 For an additional amount for ‘‘Operation and Mainte8 nance, Navy’’, $4,865,003,000, of which $120,293,000 shall 

9 be transferred to Coast Guard, ‘‘Operating Expenses’’, for 

10 reimbursement for activities in support of activities re11 quested by the Navy. 

12 OPERATION AND MAINTENANCE, MARINE CORPS

13 For an additional amount for ‘‘Operation and Mainte14 nance, Marine Corps’’, $1,101,594,000. 

15 OPERATION AND MAINTENANCE, AIR FORCE

16 For an additional amount for ‘‘Operation and Mainte17 nance, Air Force’’, $6,685,881,000. 

18 OPERATION AND MAINTENANCE, DEFENSE-WIDE

19 For an additional amount for ‘‘Operation and Mainte20 nance, Defense-Wide’’, $2,790,669,000, of which— 

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

22 Combatant Commander Initiative Fund, to be used in 

23 support of Operation Iraqi Freedom and Operation 

24 Enduring Freedom; and 


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1 (2) not to exceed $200,000,000, to remain avail2 able until expended, may be used for payments to re3 imburse Pakistan, Jordan, and other key cooperating 

4 nations, for logistical, military, and other support 

5 provided to United States military operations, not6 withstanding any other provision of law: Provided, 

7 That such payments may be made in such amounts 

8 as the Secretary of Defense, with the concurrence of 

9 the Secretary of State, and in consultation with the 

10 Director of the Office of Management and Budget, 

11 may determine, in his discretion, based on docu12 mentation determined by the Secretary of Defense to 

13 adequately account for the support provided, and such 

14 determination is final and conclusive upon the ac15 counting officers of the United States, and 15 days 

16 following notification to the appropriate congressional 

17 committees: Provided further, That the Secretary of 

18 Defense shall provide quarterly reports to the congres19 sional defense committees on the use of funds provided 

20 in this paragraph. 

21 OPERATION AND MAINTENANCE, ARMY RESERVE

22 For an additional amount for ‘‘Operation and Mainte23 nance, Army Reserve’’, $74,049,000. 


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1 OPERATION AND MAINTENANCE, NAVY RESERVE

2 For an additional amount for ‘‘Operation and Mainte3 nance, Navy Reserve’’, $111,066,000. 

4 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

5 For an additional amount for ‘‘Operation and Mainte6 nance, Marine Corps Reserve’’, $13,591,000. 

7 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

8 For an additional amount for ‘‘Operation and Mainte9 nance, Air Force Reserve’’, $10,160,000. 

10 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

11 For an additional amount for ‘‘Operation and Mainte12 nance, Army National Guard’’, $83,569,000. 

13 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

14 For an additional amount for ‘‘Operation and Mainte15 nance, Air National Guard’’, $38,429,000. 

16 AFGHANISTAN SECURITY FORCES FUND

17 For an additional amount for ‘‘Afghanistan Security 

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

19 September 30, 2008. 

20 IRAQ SECURITY FORCES FUND

21 For an additional amount for ‘‘Iraq Security Forces 

22 Fund’’, $3,842,300,000, to remain available until Sep23 tember 30, 2008. 


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1 IRAQ FREEDOM FUND

2 (INCLUDING TRANSFER OF FUNDS)

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

4 $455,600,000, to remain available for transfer until Sep5 tember 30, 2008. 

6 JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

7 For an additional amount for ‘‘Joint Improvised Ex8 plosive Device Defeat Fund’’, $2,432,800,000, to remain 

9 available until September 30, 2009. 

10 PROCUREMENT 

11 AIRCRAFT PROCUREMENT, ARMY

12 For an additional amount for ‘‘Aircraft Procurement, 

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

14 30, 2009. 

15 MISSILE PROCUREMENT, ARMY

16 For an additional amount for ‘‘Missile Procurement, 

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

18 30, 2009. 

19 PROCUREMENTOF WEAPONS AND TRACKED COMBAT

20 VEHICLES, ARMY

21 For an additional amount for ‘‘Procurement of Weap22 ons and Tracked Combat Vehicles, Army’’, $3,400,315,000, 

23 to remain available until September 30, 2009. 


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1 PROCUREMENTOF AMMUNITION, ARMY

2 For an additional amount for ‘‘Procurement of Am3 munition, Army’’, $681,500,000, to remain available until 

4 September 30, 2009. 

5 OTHER PROCUREMENT, ARMY

6 For an additional amount for ‘‘Other Procurement, 

7 Army’’, $10,589,272,000, to remain available until Sep8 tember 30, 2009. 

9 AIRCRAFT PROCUREMENT, NAVY

10 For an additional amount for ‘‘Aircraft Procurement, 

11 Navy’’, $963,903,000, to remain available until September 

12 30, 2009. 

13 WEAPONS PROCUREMENT, NAVY

14 For an additional amount for ‘‘Weapons Procurement, 

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

16 30, 2009. 

17 PROCUREMENTOF AMMUNITION, NAVY AND MARINE

18 CORPS

19 For an additional amount for ‘‘Procurement of Am20 munition, Navy and Marine Corps’’, $159,833,000, to re21 main available until September 30, 2009. 

22 OTHER PROCUREMENT, NAVY

23 For an additional amount for ‘‘Other Procurement, 

24 Navy’’, $722,506,000, to remain available until September 

25 30, 2009. 


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1 PROCUREMENT, MARINE CORPS

2 For an additional amount for ‘‘Procurement, Marine 

3 Corps’’, $1,703,389,000, to remain available until Sep4 tember 30, 2009. 

5 AIRCRAFT PROCUREMENT, AIR FORCE

6 For an additional amount for ‘‘Aircraft Procurement, 

7 Air Force’’, $1,431,756,000, to remain available until Sep8 tember 30, 2009. 

9 MISSILE PROCUREMENT, AIR FORCE

10 For an additional amount for ‘‘Missile Procurement, 

11 Air Force’’, $78,900,000, to remain available until Sep12 tember 30, 2009. 

13 PROCUREMENTOF AMMUNITION, AIR FORCE

14 For an additional amount for ‘‘Procurement of Am15 munition, Air Force’’, $6,000,000, to remain available until 

16 September 30, 2009. 

17 OTHER PROCUREMENT, AIR FORCE

18 For an additional amount for ‘‘Other Procurement, 

19 Air Force’’, $1,972,131,000, to remain available until Sep20 tember 30, 2009. 

21 PROCUREMENT, DEFENSE-WIDE

22 For an additional amount for ‘‘Procurement, Defense23 Wide’’, $903,092,000, to remain available until September 

24 30, 2009. 


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1 NATIONAL GUARD AND RESERVE EQUIPMENT

2 For an additional amount for ‘‘National Guard and 

3 Reserve Equipment’’, $1,000,000,000, to remain available 

4 until September 30, 2009. 

5 RESEARCH, DEVELOPMENT, TEST AND 

6 EVALUATION 

7 RESEARCH, DEVELOPMENT, TESTAND EVALUATION, ARMY

8 For an additional amount for ‘‘Research, Develop9 ment, Test and Evaluation, Army’’, $125,576,000, to re10 main available until September 30, 2008. 

11 RESEARCH, DEVELOPMENT, TESTAND EVALUATION, NAVY

12 For an additional amount for ‘‘Research, Develop13 ment, Test and Evaluation, Navy’’, $308,212,000, to re14 main available until September 30, 2008. 

15 RESEARCH, DEVELOPMENT, TESTAND EVALUATION, AIR

16 FORCE

17 For an additional amount for ‘‘Research, Develop18 ment, Test and Evaluation, Air Force’’, $233,869,000, to 

19 remain available until September 30, 2008. 

20 RESEARCH, DEVELOPMENT, TESTAND EVALUATION, 

21 DEFENSE-WIDE

22 For an additional amount for ‘‘Research, Develop23 ment, Test and Evaluation, Defense-Wide’’, $522,804,000, 

24 to remain available until September 30, 2008. 


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1 REVOLVING AND MANAGEMENT FUNDS 

2 NATIONAL DEFENSE SEALIFT FUND

3 For an additional amount for ‘‘National Defense Sea4 lift Fund’’, $5,000,000. 

5 DEFENSE WORKING CAPITAL FUNDS

6 For an additional amount for ‘‘Defense Working Cap7 ital Funds’’, $1,315,526,000. 

8 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

9 DEFENSE HEALTH PROGRAM

10 For an additional amount for ‘‘Defense Health Pro11 gram’’, $2,466,847,000; of which $2,277,147,000 shall be for 

12 operation and maintenance; of which $118,000,000, to re13 main available for obligation until September 30, 2009, 

14 shall be for Procurement; and of which $71,700,000, to re15 main available for obligation until September 30, 2008, 

16 shall be for Research, development, test and evaluation. 

17 DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, 

18 DEFENSE

19 (INCLUDING TRANSFER OF FUNDS)

20 For an additional amount for ‘‘Drug Interdiction and 

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

22 available until expended: Provided, That these funds may 

23 be used only for such activities related to Afghanistan and 

24 Central Asia: Provided further, That the Secretary of De25 fense may transfer such funds only to appropriations for 


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1 military personnel; operation and maintenance; procure2 ment; and research, development, test and evaluation: Pro3 vided further, That the funds transferred shall be merged 

4 with and be available for the same purposes and for the 

5 same time period as the appropriation to which transferred: 

6 Provided further, That the transfer authority provided in 

7 this paragraph is in addition to any other transfer author8 ity available to the Department of Defense: Provided fur9 ther, That upon a determination that all or part of the 

10 funds transferred from this appropriation are not necessary 

11 for the purposes provided herein, such amounts may be 

12 transferred back to this appropriation. 

13 RELATED AGENCY 

14 INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

15 For an additional amount for ‘‘Intelligence Commu16 nity Management Account’’, $71,726,000. 

17 GENERAL PROVISIONS—THIS CHAPTER 

18 SEC. 1301. Appropriations provided in this chapter 

19 are available for obligation until September 30, 2007, un20 less otherwise provided in this chapter. 

21 (TRANSFER OF FUNDS)

22 SEC. 1302. Upon his determination that such action 

23 is necessary in the national interest, the Secretary of De24 fense may transfer between appropriations up to 

25 $3,500,000,000 of the funds made available to the Depart26 ment of Defense in this title: Provided, That the Secretary 


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1 shall notify the Congress promptly of each transfer made 

2 pursuant to the authority in this section: Provided further, 

3 That the authority provided in this section is in addition 

4 to any other transfer authority available to the Department 

5 of Defense and is subject to the same terms and conditions 

6 as the authority provided in section 8005 of the Department 

7 of Defense Appropriations Act, 2007 (Public Law 109–289; 

8 120 Stat. 1257), except for the fourth proviso: Provided fur9 ther, That funds previously transferred to the ‘‘Joint Impro10 vised Explosive Device Defeat Fund’’ and the ‘‘Iraq Secu11 rity Forces Fund’’ under the authority of section 8005 of 

12 Public Law 109–289 and transferred back to their source 

13 appropriations accounts shall not be taken into account for 

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

15 be transferred under section 8005. 

16 SEC. 1303. Funds appropriated in this chapter, or 

17 made available by the transfer of funds in or pursuant to 

18 this chapter, for intelligence activities are deemed to be spe19 cifically authorized by the Congress for purposes of section 

20 504(a)(1) of the National Security Act of 1947 (50 U.S.C. 

21 414(a)(1)). 

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

23 may be used to finance programs or activities denied by 

24 Congress in fiscal years 2006 or 2007 appropriations to the 

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1 search, development, test and evaluation new start program 

2 without prior written notification to the congressional de3 fense committees. 

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

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

6 amounts in or credited to the Defense Cooperation Account, 

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

8 funds of the Department of Defense as he shall determine 

9 for use consistent with the purposes for which such funds 

10 were contributed and accepted: Provided, That such 

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

12 appropriation to which transferred: Provided further, That 

13 the Secretary shall report to the Congress all transfers made 

14 pursuant to this authority. 

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

16 Of the amount appropriated by this title under the heading, 

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

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

19 counter-drug activities of the Governments of Afghanistan, 

20 Kazakhstan, and Pakistan: Provided, That such support 

21 shall be in addition to support provided for the counter22 drug activities of such Governments under any other provi23 sion of the law. 

24 (b) TYPES OF SUPPORT.— 


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

2 this section, the support that may be provided under 

3 the authority in this section shall be limited to the 

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

5 National Defense Authorization Act for Fiscal Year 

6 1998 (Public Law 105–85, as amended by Public 

7 Laws 106–398, 108–136, and 109–364) and condi8 tions on the provision of support as contained in sec9 tion 1033 shall apply for fiscal year 2007. 

10 (2) The Secretary of Defense may transfer vehi11 cles, aircraft, and detection, interception, monitoring 

12 and testing equipment to said Governments for 

13 counter-drug activities. 

14 SEC. 1307. (a) From funds made available for oper15 ations and maintenance in this title to the Department of 

16 Defense, not to exceed $456,400,000 may be used, notwith17 standing any other provision of law, to fund the Com18 mander’s Emergency Response Program, for the purpose of 

19 enabling military commanders in Iraq and Afghanistan to 

20 respond to urgent humanitarian relief and reconstruction 

21 requirements within their areas of responsibility by car22 rying out programs that will immediately assist the Iraqi 

23 and Afghan people. 

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

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


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1 Defense shall submit to the congressional defense committees 

2 a report regarding the source of funds and the allocation 

3 and use of funds during that quarter that were made avail4 able pursuant to the authority provided in this section or 

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

6 programs under subsection (a). 

7 SEC. 1308. During fiscal year 2007, supervision and 

8 administration costs associated with projects carried out 

9 with funds appropriated to ‘‘Afghanistan Security Forces 

10 Fund’’ or ‘‘Iraq Security Forces Fund’’ in this chapter may 

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

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

13 and administration costs include all in-house Government 

14 costs. 

15 SEC. 1309. Section 1005(c)(2) of the National Defense 

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

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

18 ‘‘$376,446,000’’. 

19 SEC. 1310. None of the funds appropriated or other20 wise made available by this or any other Act shall be obli21 gated or expended by the United States Government for a 

22 purpose as follows: 

23 (1) To establish any military installation or base 

24 for the purpose of providing for the permanent sta25 tioning of United States Armed Forces in Iraq. 


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1 (2) To exercise United States control over any 

2 oil resource of Iraq. 

3 SEC. 1311. None of the funds made available in this 

4 Act may be used in contravention of the following laws en5 acted or regulations promulgated to implement the United 

6 Nations Convention Against Torture and Other Cruel, In7 human or Degrading Treatment or Punishment (done at 

8 New York on December 10, 1984): 

9 (1) Section 2340A of title 18, United States 

10 Code; 

11 (2) Section 2242 of the Foreign Affairs Reform 

12 and Restructuring Act of 1998 (division G of Public 

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

14 note) and regulations prescribed thereto, including 

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

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

17 Regulations; and 

18 (3) Sections 1002 and 1003 of the Department of 

19 Defense, Emergency Supplemental Appropriations to 

20 Address Hurricanes in the Gulf of Mexico, and Pan21 demic Influenza Act, 2006 (Public Law 109–148). 

22 SEC. 1312. Section 9007 of Public Law 109–289 is 

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

24 SEC. 1313. INSPECTION OF MILITARY MEDICAL

25 TREATMENT FACILITIES, MILITARY QUARTERS HOUSING


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1 MEDICAL HOLD PERSONNEL, AND MILITARY QUARTERS

2 HOUSING MEDICAL HOLDOVER PERSONNEL. (A) PERIODIC

3 INSPECTION REQUIRED.— 

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

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

6 thereafter, the Secretary of Defense shall inspect each 

7 facility of the Department of Defense as follows: 

8 (A) Each military medical treatment facil9 ity. 

10 (B) Each military quarters housing medical 

11 hold personnel. 

12 (C) Each military quarters housing medical 

13 holdover personnel. 

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

15 under this subsection is to ensure that the facility or 

16 quarters concerned meets acceptable standards for the 

17 maintenance and operation of medical facilities, 

18 quarters housing medical hold personnel, or quarters 

19 housing medical holdover personnel, as applicable. 

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

21 section, acceptable standards for the operation and mainte22 nance of military medical treatment facilities, military 

23 quarters housing medical hold personnel, or military quar24 ters housing medical holdover personnel are each of the fol25 lowing: 


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1 (1) Generally accepted standards for the accredi2 tation of non-military medical facilities, or for facili3 ties used to quarter individuals with medical condi4 tions that may require medical supervision, as appli5 cable, in the United States. 

6 (2) Standards under the Americans with Dis7 abilities Act of 1990 (42 U.S.C. 12101 et seq.). 

8 (c) ADDITIONAL INSPECTIONS ON IDENTIFIED DEFI9 CIENCIES.— 

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

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

12 quarters described in paragraph (1) of that sub13 section— 

14 (A) the commander of such facility or quar15 ters, as applicable, shall submit to the Secretary 

16 a detailed plan to correct the deficiency; and 

17 (B) the Secretary shall reinspect such facil18 ity or quarters, as applicable, not less often than 

19 once every 180 days until the deficiency is cor20 rected. 

21 (2) CONSTRUCTION WITH OTHER INSPECTIONS.— 

22 An inspection of a facility or quarters under this sub23 section is in addition to any inspection of such facil24 ity or quarters under subsection (a). 


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

2 the report on each inspection conducted under subsections 

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

4 applicable military medical command and to the congres5 sional defense committees. 

6 (e) REPORTON STANDARDS.—In the event no stand7 ards for the maintenance and operation of military medical 

8 treatment facilities, military quarters housing medical hold 

9 personnel, or military quarters housing medical holdover 

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

11 or such standards as do exist do not meet acceptable stand12 ards for the maintenance and operation of such facilities 

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

14 later than 30 days after that date, submit to Congress a 

15 report setting forth the plan of the Secretary to ensure— 

16 (1) the adoption by the Department of standards 

17 for the maintenance and operation of military med18 ical facilities, military quarters housing medical hold 

19 personnel, or military quarters housing medical hold20 over personnel, as applicable, that meet— 

21 (A) acceptable standards for the mainte22 nance and operation of such facilities or quar23 ters, as the case may be; and 

24 (B) standards under the Americans with 

25 Disabilities Act of 1990; and 


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1 (2) the comprehensive implementation of the 

2 standards adopted under paragraph (1) at the earliest 

3 date practicable. 

4 SEC. 1314. From funds made available for the ‘‘Iraq 

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

6 $155,500,000 may be used, notwithstanding any other pro7 vision of law, to provide assistance, with the concurrence 

8 of the Secretary of State, to the Government of Iraq to sup9 port the disarmament, demobilization, and reintegration of 

10 militias and illegal armed groups. 

11 SEC. 1315. REVISION OF UNITED STATES POLICY ON

12 IRAQ. (a) FINDINGS.—Congress makes the following find13 ings: 

14 (1) Congress and the American people will con15 tinue to support and protect the members of the 

16 United States Armed Forces who are serving or have 

17 served bravely and honorably in Iraq. 

18 (2) The circumstances referred to in the Author19 ization for Use of Military Force Against Iraq Reso20 lution of 2002 (Public Law 107–243) have changed 

21 substantially. 

22 (3) United States troops should not be policing 

23 a civil war, and the current conflict in Iraq requires 

24 principally a political solution. 


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1 (4) United States policy on Iraq must change to 

2 emphasize the need for a political solution by Iraqi 

3 leaders in order to maximize the chances of success 

4 and to more effectively fight the war on terror. 

5 (b) PROMPT COMMENCEMENTOF PHASED REDEPLOY6 MENTOF UNITED STATES FORCES FROM IRAQ.— 

7 (1) TRANSITION OF MISSION.—The President 

8 shall promptly transition the mission of United 

9 States forces in Iraq to the limited purposes set forth 

10 in paragraph (2). 

11 (2) COMMENCEMENTOF PHASED REDEPLOYMENT

12 FROM IRAQ.—The President shall commence the 

13 phased redeployment of United States forces from 

14 Iraq not later than 120 days after the date of the en15 actment of this Act, with the goal of redeploying, by 

16 March 31, 2008, all United States combat forces from 

17 Iraq except for a limited number that are essential for 

18 the following purposes: 

19 (A) Protecting United States and coalition 

20 personnel and infrastructure. 

21 (B) Training and equipping Iraqi forces. 

22 (C) Conducting targeted counter-terrorism 

23 operations. 

24 (3) COMPREHENSIVE STRATEGY.—Paragraph (2) 

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1 lomatic, political, and economic strategy that includes 

2 sustained engagement with Iraq’s neighbors and the 

3 international community for the purpose of working 

4 collectively to bring stability to Iraq. 

5 (4) REPORTS REQUIRED.—Not later than 60 

6 days after the date of the enactment of this Act, and 

7 every 90 days thereafter, the President shall submit to 

8 Congress a report on the progress made in 

9 transitioning the mission of the United States forces 

10 in Iraq and implementing the phased redeployment of 

11 United States forces from Iraq as required under this 

12 subsection, as well as a classified campaign plan for 

13 Iraq, including strategic and operational benchmarks 

14 and projected redeployment dates of United States 

15 forces from Iraq. 

16 (c) BENCHMARKS FOR THE GOVERNMENTOF IRAQ.— 

17 (1) SENSE OF CONGRESS.—It is the sense of 

18 Congress that— 

19 (A) achieving success in Iraq is dependent 

20 on the Government of Iraq meeting specific 

21 benchmarks, as reflected in previous commit22 ments made by the Government of Iraq, includ23 ing— 

24 (i) deploying trained and ready Iraqi 

25 security forces in Baghdad; 


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1 (ii) strengthening the authority of 

2 Iraqi commanders to make tactical and 

3 operational decisions without political 

4 intervention; 

5 (iii) disarming militias and ensuring 

6 that Iraqi security forces are accountable 

7 only to the central government and loyal to 

8 the constitution of Iraq; 

9 (iv) enacting and implementing legis10 lation to ensure that the energy resources of 

11 Iraq benefit all Iraqi citizens in an equi12 table manner; 

13 (v) enacting and implementing legisla14 tion that equitably reforms the de15 Ba’athification process in Iraq; 

16 (vi) ensuring a fair process for amend17 ing the constitution of Iraq so as to protect 

18 minority rights; and 

19 (vii) enacting and implementing rules 

20 to equitably protect the rights of minority 

21 political parties in the Iraqi Parliament; 

22 and 

23 (B) each benchmark set forth in subpara24 graph (A) should be completed expeditiously and 


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1 pursuant to a schedule established by the Govern2 ment of Iraq. 

3 (2) REPORT.—Not later than 30 days after the 

4 date of the enactment of this Act, and every 60 days 

5 thereafter, the Commander, Multi-National Forces6 Iraq and the United States Ambassador to Iraq shall 

7 jointly submit to Congress a report describing and as8 sessing in detail the current progress being made by 

9 the Government of Iraq in meeting the benchmarks set 

10 forth in paragraph (1)(A). 

11 SEC. 1316. INDEPENDENT ASSESSMENTOF CAPABILI12 TIES OF THE IRAQI SECURITY FORCES. (a) FINDINGS.— 

13 Congress makes the following findings: 

14 (1) The responsibility for Iraq’s internal security 

15 and halting sectarian violence must rest primarily 

16 with the Government of Iraq, relying on the Iraqi Se17 curity Forces (ISF). 

18 (2) In quarterly reports to Congress, and in tes19 timony before a number of congressional committees, 

20 the Department of Defense reported progress towards 

21 training and equipping Iraqi Security Forces; how22 ever, the subsequent performance of the Iraqi Security 

23 Forces has been uneven and occasionally appeared in24 consistent with those reports. 


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1 (3) On November 15, 2005, President Bush said, 

2 ‘‘The plan [is] that we will train Iraqi troops to be 

3 able to take the fight to the enemy. And as I have con4 sistently said, as the Iraqis stand up, we will stand 

5 down’’. 

6 (4) On January 10, 2007, the President an7 nounced a new strategy, which consists of three basic 

8 elements: diplomatic, economic, and military; the cen9 tral component of the military element being an aug10 mentation of the present level of the U.S. military 

11 forces with more than 20,000 additional U.S. mili12 tary troops to Iraq to ‘‘work alongside Iraqi units 

13 and be embedded in their formations. Our troops will 

14 have a well-defined mission: to help Iraqis clear and 

15 secure neighborhoods, to help them protect the local 

16 population, and to help ensure that the Iraqi forces 

17 left behind are capable of providing the security that 

18 Baghdad needs’’. 

19 (5) The President said on January 10, 2007, 

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

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

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

23 that exists. 

24 (6) The latest National Intelligence Estimate 

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1 bility: A Challenging Road Ahead,’’ released in Janu2 ary 2007, found: ‘‘If strengthened Iraqi Security 

3 Forces (ISF), more loyal to the government and sup4 ported by Coalition forces, are able to reduce levels of 

5 violence and establish more effective security for 

6 Iraq’s population, Iraqi leaders could have an oppor7 tunity to begin the process of political compromise 

8 necessary for longer term stability, political progress, 

9 and economic recovery’’. 

10 (7) The NIE also stated that ‘‘[d]espite real im11 provements, the Iraqi Security Forces (ISF)—par12 ticularly the Iraqi police—will be hard pressed in the 

13 next 12–18 months to execute significantly increased 

14 security responsibilities’’. 

15 (8) The current and prospective readiness of the 

16 ISF is critical to (A) the long term stability of Iraq, 

17 (B) the force protection of U.S. forces conducting com18 bined operations with the ISF; and (C) the scale of 

19 U.S. forces deployed to Iraq. 

20 (b) INDEPENDENT ASSESSMENTOF CAPABILITIES OF

21 IRAQI SECURITY FORCES.— 

22 (1) IN GENERAL.—Of the amount appropriated 

23 or otherwise made available for the Department of 

24 Defense, $750,000 is provided to commission an inde25 pendent, private-sector entity, which operates as a 


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1 501(c)(3) with recognized credentials and expertise in 

2 military affairs, to prepare an independent report as3 sessing the following: 

4 (A) The readiness of the Iraqi Security 

5 Forces (ISF) to assume responsibility for main6 taining the territorial integrity of Iraq, denying 

7 international terrorists a safe haven, and bring8 ing greater security to Iraq’s 18 provinces in the 

9 next 12–18 months, and bringing an end to sec10 tarian violence to achieve national reconcili11 ation. 

12 (B) The training; equipping; command, 

13 control and intelligence capabilities; and logis14 tics capacity of the ISF. 

15 (C) The likelihood that, given the ISF’s 

16 record of preparedness to date, following years of 

17 training and equipping by US forces, the contin18 ued support of US troops will contribute to the 

19 readiness of the ISF to fulfill the missions out20 lined in subparagraph (A). 

21 (2) REPORT.—Not later than 120 days after pas22 sage of this Act, the designated private sector entity 

23 shall provide an unclassified report, with a classified 

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1 ate Committees on Armed Services, Appropriations, 

2 Foreign Relations, and Intelligence. 

3 SEC. 1317. (a)(1) Notwithstanding any other provi4 sion of law, the Secretary of Veterans Affairs (referred to 

5 in this section as the ‘‘Secretary’’) may convey to the State 

6 of Texas, without consideration, all right, title, and interest 

7 of the United States in and to the parcel of real property 

8 comprising the location of the Marlin, Texas, Department 

9 of Veterans Affairs Medical Center. 

10 (2) The property conveyed under paragraph (1) shall 

11 be used by the State of Texas for the purposes of a prison. 

12 (b) In carrying out the conveyance under subsection 

13 (a), the Secretary— 

14 (1) shall not be required to comply with, and 

15 shall not be held liable under, any Federal law (in16 cluding a regulation) relating to the environment or 

17 historic preservation; but 

18 (2) may, at the discretion of the Secretary, con19 duct environmental cleanup on the parcel to be con20 veyed, at a cost not to exceed $500,000, using 

21 amounts made available for environmental cleanup of 

22 sites under the jurisdiction of the Secretary. 

23 SEC. 1318. REDEVELOPMENTOF INDUSTRIAL SECTOR

24 IN IRAQ. Of the amount appropriated or otherwise made 

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1 DOM FUND’’, up to $100,000,000 may be obligated and ex2 pended for purposes of the Task Force to Improve Business 

3 and Stability Operations in Iraq. 

4 SEC. 1319. ADDITIONAL AMOUNTFOR PROCUREMENT, 

5 MARINE CORPS, FOR ACCELERATION OF PROCUREMENTOF

6 ADDITIONAL 2,500 MINE RESISTANT AMBUSH PROTECTED

7 VEHICLES FOR THE ARMED FORCES.—(a) ADDITIONAL

8 AMOUNT.—The amount appropriated by this chapter under 

9 the heading ‘‘PROCUREMENT, MARINE CORPS’’ is hereby in10 creased by $1,500,000,000, with the amount of the increase 

11 to be available to the Marine Corps for the procurement 

12 of an additional 2,500 Mine Resistant Ambush Protected 

13 (MRAP) vehicles for the regular and reserve components of 

14 the Armed Forces by not later than December 31, 2007. 

15 (b) SUPPLEMENT NOT SUPPLANT.—The amount avail16 able under subsection (a) for the procurement of vehicles 

17 described in that subsection is in addition to any other 

18 amounts available under this chapter for that purpose. 

19 CHAPTER 4 

20 DEPARTMENT OF ENERGY 

21 ATOMIC ENERGY DEFENSE ACTIVITIES 

22 NATIONAL NUCLEAR SECURITY ADMINISTRATION

23 DEFENSE NUCLEAR NONPROLIFERATION

24 For an additional amount for ‘‘Defense Nuclear Non25 proliferation’’, $63,000,000. 


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1 CHAPTER 5 

2 DEPARTMENT OF HOMELAND SECURITY 

3 UNITED STATES CUSTOMS AND BORDER PROTECTION

4 SALARIES AND EXPENSES

5 For an additional amount for ‘‘Salaries and Ex6 penses’’, $140,000,000, to remain available until September 

7 30, 2008. 

8 AIR AND MARINE INTERDICTION, OPERATIONS, 

9 MAINTENANCE, AND PROCUREMENT

10 For an additional amount for ‘‘Air and Marine Inter11 diction, Operations, Maintenance, and Procurement’’, for 

12 air and marine operations on the Northern Border and the 

13 Great Lakes, including the final Northern Border air wing, 

14 $75,000,000, to remain available until September 30, 2008. 

15 IMMIGRATION AND CUSTOMS ENFORCEMENT

16 SALARIES AND EXPENSES

17 For an additional amount for ‘‘Salaries and Ex18 penses’’, $20,000,000, to remain available until September 

19 30, 2008. 

20 TRANSPORTATION SECURITY ADMINISTRATION

21 AVIATION SECURITY

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

23 $660,000,000; of which $600,000,000 shall be for procure24 ment and installation of checked baggage explosives detec25 tion systems, to remain available until expended; and 


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1 $60,000,000 shall be for air cargo security, to remain avail2 able until September 30, 2008. 

3 FEDERAL AIR MARSHALS

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

5 $15,000,000, to remain available until September 30, 2008. 

6 PREPAREDNESS

7 MANAGEMENT AND ADMINISTRATION

8 For an additional amount for ‘‘Office of the Chief Med9 ical Officer’’ for nuclear preparedness and other activities, 

10 $18,000,000, to remain available until September 30, 2008. 

11 INFRASTRUCTURE PROTECTION AND INFORMATION

12 SECURITY

13 For an additional amount for ‘‘Infrastructure Protec14 tion and Information Security’’ for chemical site security 

15 activities, $18,000,000, to remain available until September 

16 30, 2008. 

17 FEDERAL EMERGENCY MANAGEMENT AGENCY

18 ADMINISTRATIVE AND REGIONAL OPERATIONS

19 For an additional amount for ‘‘Administrative and 

20 Regional Operations’’ for necessary expenses related to title 

21 V of the Homeland Security Act of 2002 (6 U.S.C. 101 et 

22 seq. (as amended by section 611 of the Post-Katrina Emer23 gency Management Reform Act of 2006 (6 U.S.C. 701 note; 

24 Public Law 109–295))), $20,000,000, to remain available 

25 until September 30, 2008: Provided, That none of the funds 

26 available under this heading may be obligated until the 


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1 Committees on Appropriations of the Senate and the House 

2 of Representatives receive and approve a plan for expendi3 ture. 

4 STATE AND LOCAL PROGRAMS

5 For an additional amount for ‘‘State and Local Pro6 grams’’, $850,000,000; of which $190,000,000 shall be for 

7 port security pursuant to section 70107(l) of title 46 United 

8 States Code; $625,000,000 shall be for intercity rail pas9 senger transportation, freight rail, and transit security 

10 grants; and $35,000,000 shall be for regional grants and 

11 technical assistance to high risk urban areas for cata12 strophic event planning and preparedness: Provided, That 

13 none of the funds made available under this heading may 

14 be obligated for such regional grants and technical assist15 ance until the Committees on Appropriations of the Senate 

16 and the House of Representatives receive and approve a 

17 plan for expenditure: Provided further, That funds for such 

18 regional grants and technical assistance shall remain avail19 able until September 30, 2008. 

20 EMERGENCY MANAGEMENTPERFORMANCE GRANTS

21 For an additional amount for ‘‘Emergency Manage22 ment Performance Grants’’ for necessary expenses related 

23 to the Nationwide Plan Review, $100,000,000. 


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1 UNITED STATES CITIZENSHIP AND IMMIGRATION

2 SERVICES

3 For an additional amount for expenses of ‘‘United 

4 States Citizenship and Immigration Services’’ to address 

5 backlogs of security checks associated with pending applica6 tions and petitions, $30,000,000, to remain available until 

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

8 available under this heading shall be available for obliga9 tion until the Secretary of Homeland Security, in consulta10 tion with the United States Attorney General, submits to 

11 the Committees on Appropriations of the Senate and the 

12 House of Representatives a plan to eliminate the backlog 

13 of security checks that establishes information sharing pro14 tocols to ensure United States Citizenship and Immigration 

15 Services has the information it needs to carry out its mis16 sion. 

17 SCIENCE AND TECHNOLOGY

18 RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

19 For an additional amount for ‘‘Research, Develop20 ment, Acquisition, and Operations’’ for air cargo research, 

21 $15,000,000, to remain available until expended. 

22 DOMESTIC NUCLEAR DETECTION OFFICE

23 RESEARCH, DEVELOPMENT, AND OPERATIONS

24 For an additional amount for ‘‘Research, Develop25 ment, and Operations’’ for non-container, rail, aviation 


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1 and intermodal radiation detection activities, $39,000,000, 

2 to remain available until expended. 

3 GENERAL PROVISIONS—THIS CHAPTER 

4 SEC. 1501. None of the funds provided in this Act, or 

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

6 872 of Public Law 107–296. 

7 SEC. 1502. Section 550 of the Department of Home8 land Security Appropriations Act, 2007 (6 U.S.C. 121 note) 

9 is amended by adding at the end the following: 

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

11 of any State or political subdivision thereof to adopt or en12 force any regulation, requirement, or standard of perform13 ance with respect to chemical facility security that is more 

14 stringent than a regulation, requirement, or standard of 

15 performance issued under this section, or otherwise impair 

16 any right or jurisdiction of any State with respect to chem17 ical facilities within that State, unless there is an actual 

18 conflict between this section and the law of that State.’’. 

19 SEC. 1503. LINKING OF AWARD FEES UNDER DE20 PARTMENT OF HOMELAND SECURITY CONTRACTS TO SUC21 CESSFUL ACQUISITION OUTCOMES. The Secretary of Home22 land Security shall require that all contracts of the Depart23 ment of Homeland Security that provide award fees link 

24 such fees to successful acquisition outcomes (which outcomes 


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1 shall be specified in terms of cost, schedule, and perform2 ance). 

3 SEC. 1504. DOMESTIC PREPAREDNESS EQUIPMENT

4 TECHNICAL ASSISTANCE PROGRAM. (a) ADDITIONAL

5 AMOUNTFOR STATE AND LOCAL PROGRAMS.—The amount 

6 appropriated or otherwise made available by this chapter 

7 under the heading ‘‘STATE AND LOCAL PROGRAMS’’ is hereby 

8 increased by $5,000,000. 

9 (b) AVAILABILITY FOR DOMESTIC PREPAREDNESS

10 EQUIPMENT TECHNICAL ASSISTANCE PROGRAM.—Of the 

11 amount appropriated or otherwise made available by this 

12 chapter under the heading ‘‘STATE AND LOCAL PROGRAMS’’, 

13 as increased by subsection (a), $5,000,000 shall be available 

14 for the Domestic Preparedness Equipment Technical Assist15 ance Program (DPETAP). 

16 (c) OFFSET.—The amount appropriated or otherwise 

17 made available by this chapter under the heading ‘‘UNITED

18 STATES CITIZENSHIP AND IMMIGRATION SERVICES’’ is 

19 hereby reduced by $5,000,000. 

20 CHAPTER 6 

21 MILITARY CONSTRUCTION 

22 MILITARY CONSTRUCTION, ARMY

23 For an additional amount for ‘‘Military Construction, 

24 Army’’, $1,261,390,000, to remain available until Sep25 tember 30, 2008: Provided, That such funds may be obliVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00204 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 gated and expended to carry out planning and design and 

2 military construction projects not otherwise authorized by 

3 law: Provided further, That of the funds provided under this 

4 heading, $280,300,000 shall not be obligated or expended 

5 until the Secretary of Defense certifies that none of the 

6 funds are to be used for the purpose of providing facilities 

7 for the permanent basing of U.S. military personnel in 

8 Iraq. 

9 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

10 For an additional amount for ‘‘Military Construction, 

11 Navy and Marine Corps’’, $347,890,000, to remain avail12 able until September 30, 2008: Provided, That such funds 

13 may be obligated and expended to carry out planning and 

14 design and military construction projects not otherwise au15 thorized by law. 

16 MILITARY CONSTRUCTION, AIR FORCE

17 For an additional amount for ‘‘Military Construction, 

18 Air Force’’, $34,700,000, to remain available until Sep19 tember 30, 2008: Provided, That such funds may be obli20 gated and expended to carry out planning and design and 

21 military construction projects not otherwise authorized by 

22 law. 


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1 CHAPTER 7 

2 DEPARTMENT OF STATE AND RELATED AGENCY 

3 DEPARTMENT OF STATE 

4 ADMINISTRATION OF FOREIGN AFFAIRS

5 DIPLOMATIC AND CONSULAR PROGRAMS

6 For an additional amount for ‘‘Diplomatic and Con7 sular Programs’’, $815,796,000, to remain available until 

8 September 30, 2008, of which $70,000,000 for World Wide 

9 Security Upgrades is available until expended: Provided, 

10 That of the funds appropriated under this heading, not 

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

12 diplomacy programs: Provided further, That prior to the 

13 obligation of funds pursuant to the previous proviso, the 

14 Secretary of State shall submit a report to the Committees 

15 on Appropriations describing a comprehensive public diplo16 macy strategy, with goals and expected results, for fiscal 

17 years 2007 and 2008: Provided further, That within 15 

18 days of enactment of this Act, the Office of Management 

19 and Budget shall apportion $15,000,000 from amounts ap20 propriated or otherwise made available by chapter 8 of title 

21 II of division B of Public Law 109–148 under the heading 

22 ‘‘Emergencies in the Diplomatic and Consular Service’’ for 

23 emergency evacuations: Provided further, That of the 

24 amount made available under this heading for Iraq, not 

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


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

2 Consular Service’’ appropriations account, to be available 

3 only for emergency evacuations and terrorism rewards. 

4 OFFICE OF INSPECTOR GENERAL

5 For an additional amount for ‘‘Office of Inspector 

6 General’’, $36,500,000, to remain available until December 

7 31, 2008: Provided, That of the funds appropriated under 

8 this heading, not less than $1,500,000 shall be made avail9 able for activities related to oversight of assistance furnished 

10 for Iraq and Afghanistan with funds appropriated in this 

11 Act and in prior appropriations Acts: Provided further, 

12 That $35,000,000 of these funds shall be transferred to the 

13 Special Inspector General for Iraq Reconstruction for recon14 struction oversight. 

15 EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

16 For an additional amount for ‘‘Educational and Cul17 tural Exchange Programs’’, $25,000,000, to remain avail18 able until expended. 

19 INTERNATIONAL ORGANIZATIONS

20 CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

21 For an additional amount for ‘‘Contributions to Inter22 national Organizations’’, $59,000,000, to remain available 

23 until September 30, 2008. 


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1 CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING

2 ACTIVITIES

3 For an additional amount for ‘‘Contributions for 

4 International Peacekeeping Activities’’, $200,000,000, to re5 main available until September 30, 2008. 

6 RELATED AGENCY 

7 BROADCASTING BOARD OF GOVERNORS

8 INTERNATIONAL BROADCASTING OPERATIONS

9 For an additional amount for ‘‘International Broad10 casting Operations’’ for activities related to broadcasting to 

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

12 September 30, 2008. 

13 FOREIGN OPERATIONS 

14 BILATERAL ECONOMIC ASSISTANCE 

15 FUNDS APPROPRIATED TO THE PRESIDENT 

16 UNITED STATES AGENCY FOR INTERNATIONAL

17 DEVELOPMENT

18 CHILD SURVIVAL AND HEALTH PROGRAMS FUND

19 For an additional amount for ‘‘Child Survival and 

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

21 until September 30, 2008: Provided, That notwithstanding 

22 any other provision of law, funds made available under the 

23 heading ‘‘Millennium Challenge Corporation’’ and ‘‘Global 

24 HIV/AIDS Initiative’’ in prior Acts making appropria25 tions for foreign operations, export financing and related 


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1 programs may be made available to combat the avian influ2 enza, subject to the regular notification procedures of the 

3 Committees on Appropriations. 

4 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

5 For an additional amount for ‘‘International Disaster 

6 and Famine Assistance’’, $187,000,000, to remain available 

7 until expended: Provided, That of the funds appropriated 

8 under this heading, not less than $65,000,000 shall be made 

9 available for assistance for internally displaced persons in 

10 Iraq, not less than $18,000,000 shall be made available for 

11 emergency shelter, fuel and other assistance for internally 

12 displaced persons in Afghanistan, not less than $10,000,000 

13 shall be made available for assistance for northern Uganda, 

14 not less than $10,000,000 shall be made available for assist15 ance for eastern Democratic Republic of the Congo, and not 

16 less than $10,000,000 shall be made available for assistance 

17 for Chad. 

18 OPERATING EXPENSES OF THE UNITED STATES AGENCY

19 FOR INTERNATIONAL DEVELOPMENT

20 For an additional amount for ‘‘Operating Expenses of 

21 the United States Agency for International Development’’, 

22 $5,700,000, to remain available until September 30, 2008. 


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1 OPERATING EXPENSES OF THE UNITED STATES AGENCY

2 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN3 SPECTOR GENERAL

4 For an additional amount for ‘‘Operating Expenses of 

5 the United States Agency for International Development 

6 Office of Inspector General’’, $4,000,000, to remain avail7 able until September 30, 2008: Provided, That of the funds 

8 appropriated under this heading, not less than $3,000,000 

9 shall be made available for activities related to oversight 

10 of assistance furnished for Iraq with funds appropriated in 

11 this Act and in prior appropriations Acts, and not less than 

12 $1,000,000 shall be made available for activities related to 

13 oversight of assistance furnished for Afghanistan with funds 

14 appropriated in this Act and in prior appropriations Acts. 

15 OTHER BILATERAL ECONOMIC ASSISTANCE 

16 ECONOMIC SUPPORT FUND

17 For an additional amount for ‘‘Economic Support 

18 Fund’’, $2,602,200,000, to remain available until Sep19 tember 30, 2008: Provided, That of the funds appropriated 

20 under this heading that are available for assistance for 

21 Iraq, not less than $100,000,000 shall be made available 

22 to the United States Agency for International Development 

23 for continued support for its Community Action Program 

24 in Iraq, of which not less than $5,000,000 shall be made 

25 available for the fund established by section 2108 of Public 


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1 Law 109–13: Provided further, That of the funds appro2 priated under this heading that are available for assistance 

3 for Afghanistan, not less than $10,000,000 shall be made 

4 available to the United States Agency for International De5 velopment for continued support for its Afghan Civilian As6 sistance Program: Provided further, That of the funds ap7 propriated under this heading, not less than $6,000,000 

8 shall be made available for assistance for elections, re9 integration of ex-combatants, and other assistance to sup10 port the peace process in Nepal: Provided further, That of 

11 the funds appropriated under this heading, not less than 

12 $3,200,000 shall be made available, notwithstanding any 

13 other provision of law, for assistance for Vietnam for envi14 ronmental remediation of dioxin storage sites and to sup15 port health programs in communities near those sites: Pro16 vided further, That funds made available pursuant to the 

17 previous proviso should be matched, to the maximum extent 

18 possible, with contributions from other governments, multi19 lateral organizations, and private sources: Provided further, 

20 That of the funds made available under this heading, not 

21 less than $6,000,000 shall be made available for typhoon 

22 reconstruction assistance for the Philippines: Provided fur23 ther, That of the funds made available under this heading, 

24 not less than $110,000,000 shall be made available for as25 sistance for Pakistan, of which not less than $5,000,000 


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1 shall be made available for political party development and 

2 election monitoring activities: Provided further, That of the 

3 funds appropriated under this heading, not less than 

4 $2,000,000 shall be made available to support the peace 

5 process in northern Uganda: Provided further, That of the 

6 funds made available under the heading ‘‘Economic Sup7 port Fund’’ in Public Law 109–234 for Iraq to promote 

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

9 should be made available for the United States Institute of 

10 Peace for programs and activities in Afghanistan to remain 

11 available until September 30, 2008. 

12 DEPARTMENT OF STATE 

13 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

14 STATES

15 For an additional amount for ‘‘Assistance for Eastern 

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

17 available until September 30, 2008, for assistance for 

18 Kosovo. 

19 DEMOCRACY FUND

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

21 $465,000,000, to remain available until September 30, 

22 2008: Provided, That of the funds appropriated under this 

23 heading, not less than $385,000,000 shall be made available 

24 for the Human Rights and Democracy Fund of the Bureau 

25 of Democracy, Human Rights and Labor, Department of 


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1 State, for democracy, human rights, and rule of law pro2 grams in Iraq: Provided further, That prior to the initial 

3 obligation of funds made available under this heading for 

4 Iraq for the Political Participation Fund or the National 

5 Institutions Fund, the Secretary of State shall submit a re6 port to the Committees on Appropriations describing a com7 prehensive, long-term strategy, with goals and expected re8 sults, for strengthening and advancing democracy in Iraq: 

9 Provided further, That of the funds appropriated under this 

10 heading, not less than $5,000,000 shall be made available 

11 for media and reconciliation programs in Somalia. 

12 INTERNATIONAL NARCOTICS CONTROL AND LAW

13 ENFORCEMENT

14 (INCLUDING RESCISSION OF FUNDS)

15 For an additional amount for ‘‘International Nar16 cotics Control and Law Enforcement’’, $210,000,000, to re17 main available until September 30, 2008. 

18 Of the amounts made available for procurement of a 

19 maritime patrol aircraft for the Colombian Navy under this 

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

21 MIGRATION AND REFUGEE ASSISTANCE

22 For an additional amount for ‘‘Migration and Refugee 

23 Assistance’’, $143,000,000, to remain available until Sep24 tember 30, 2008: Provided, That of the funds appropriated 

25 under this heading, not less than $65,000,000 shall be made 


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1 available for assistance for Iraqi refugees including not less 

2 than $5,000,000 to rescue Iraqi scholars, and not less than 

3 $18,000,000 shall be made available for assistance for Af4 ghan refugees. 

5 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

6 ASSISTANCE FUND

7 For an additional amount for ‘‘United States Emer8 gency Refugee and Migration Assistance Fund’’, 

9 $55,000,000, to remain available until expended. 

10 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

11 RELATED PROGRAMS

12 For an additional amount for ‘‘Nonproliferation, 

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

14 $27,500,000, to remain available until September 30, 2008. 

15 DEPARTMENT OF THE TREASURY 

16 INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

17 PROGRAM

18 For an additional amount for ‘‘International Affairs 

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

20 until September 30, 2008. 


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1 MILITARY ASSISTANCE 

2 FUNDS APPROPRIATED TO THE PRESIDENT 

3 FOREIGN MILITARY FINANCING PROGRAM

4 For an additional amount for ‘‘Foreign Military Fi5 nancing Program’’, $220,000,000, to remain available until 

6 September 30, 2008, for assistance for Lebanon. 

7 PEACEKEEPING OPERATIONS

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount for ‘‘Peacekeeping Oper10 ations’’, $323,000,000, to remain available until September 

11 30, 2008, of which up to $128,000,000 may be transferred, 

12 subject to the regular notification procedures of the Commit13 tees on Appropriations, to ‘‘Contributions to International 

14 Peacekeeping Activities’’, to be made available, notwith15 standing any other provision of law, for assessed costs of 

16 United Nations Peacekeeping Missions: Provided, That of 

17 the funds appropriated under this heading, not less than 

18 $45,000,000 shall be made available, notwithstanding sec19 tion 660 of the Foreign Assistance Act of 1961, for assist20 ance for Liberia for security sector reform. 

21 GENERAL PROVISIONS—THIS CHAPTER 

22 AUTHORIZATION OF FUNDS

23 SEC. 1701. Funds appropriated by this title may be 

24 obligated and expended notwithstanding section 10 of Pub25 lic Law 91–672 (22 U.S.C. 2412), section 15 of the State 


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

2 2680), section 313 of the Foreign Relations Authorization 

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

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

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

6 EXTENSION OF AVAILABILITY OF FUNDS

7 SEC. 1702. Section 1302(a) of Public Law 109–234 is 

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

9 in lieu thereof ‘‘two additional years’’. 

10 EXTENSION OF OVERSIGHT AUTHORITY

11 SEC. 1703. Section 3001(o)(1)(B) of the Emergency 

12 Supplemental Appropriations Act for Defense and for the 

13 Reconstruction of Iraq and Afghanistan, 2004 (Public Law 

14 108–106; 117 Stat. 1238; 5 U.S.C. App., note to section 

15 8G of Public Law 95–452), as amended by section 1054(b) 

16 of the John Warner National Defense Authorization Act for 

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

18 and section 2 of the Iraq Reconstruction Accountability Act 

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

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

21 DEBT RESTRUCTURING

22 SEC. 1704. Amounts appropriated for fiscal year 2007 

23 for ‘‘Bilateral Economic Assistance—Department of the 

24 Treasury—Debt Restructuring’’ may be used to assist Libe25 ria in retiring its debt arrearages to the International MonVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00216 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 etary Fund, the International Bank for Reconstruction and 

2 Development, and the African Development Bank. 

3 JORDAN

4 (INCLUDING TRANSFER OF FUNDS)

5 SEC. 1705. Of the funds appropriated by this Act for 

6 assistance for Iraq under the heading ‘‘Economic Support 

7 Fund’’ that are available to support Provincial Reconstruc8 tion Team activities, up to $100,000,000 may be transferred 

9 to, and merged with, funds appropriated by this Act under 

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

11 ‘‘Nonproliferation, Anti-terrorism, Demining and Related 

12 Programs’’ for assistance for Jordan: Provided, That funds 

13 transferred pursuant to this section shall be subject to the 

14 regular notification procedures of the Committees on Appro15 priations. 

16 LEBANON

17 SEC. 1706. Prior to the initial obligation of funds 

18 made available in this Act for assistance for Lebanon under 

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

20 ‘‘Nonproliferation, Anti-terrorism, Demining and Related 

21 Programs’’, the Secretary of State shall certify to the Com22 mittees on Appropriations that all practicable efforts have 

23 been made to ensure that such assistance is not provided 

24 to or through any individual, or private or government en25 tity, that advocates, plans, sponsors, engages in, or has en26 gaged in, terrorist activity: Provided, That this section shall 


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1 be effective notwithstanding section 534(a) of Public Law 

2 109–102, which is made applicable to funds appropriated 

3 for fiscal year 2007 by the Continuing Appropriations Res4 olution, 2007, as amended. 

5 HUMAN RIGHTS AND DEMOCRACY FUND

6 SEC. 1707. The Assistant Secretary of State for De7 mocracy, Human Rights and Labor shall be responsible for 

8 all policy, funding, and programming decisions regarding 

9 funds made available under this Act and prior Acts making 

10 appropriations for foreign operations, export financing and 

11 related programs for the Human Rights and Democracy 

12 Fund of the Bureau of Democracy, Human Rights and 

13 Labor. 

14 INSPECTOR GENERAL OVERSIGHT OF IRAQ AND

15 AFGHANISTAN

16 SEC. 1708. (a) IN GENERAL.—Subject to paragraph 

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

18 the Broadcasting Board of Governors (referred to in this 

19 section as the ‘‘Inspector General’’) may use personal serv20 ices contracts to engage citizens of the United States to fa21 cilitate and support the Office of the Inspector General’s 

22 oversight of programs and operations related to Iraq and 

23 Afghanistan. Individuals engaged by contract to perform 

24 such services shall not, by virtue of such contract, be consid25 ered to be employees of the United States Government for 

26 purposes of any law administered by the Office of Personnel 


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1 Management. The Secretary of State may determine the ap2 plicability to such individuals of any law administered by 

3 the Secretary concerning the performance of such services 

4 by such individuals. 

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

6 is subject to the following conditions: 

7 (1) The Inspector General determines that exist8 ing personnel resources are insufficient. 

9 (2) The contract length for a personal services 

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

11 unless the Inspector General makes a finding that ex12 ceptional circumstances justify an extension of up to 

13 2 additional years. 

14 (3) Not more than 20 individuals may be em15 ployed at any time as personal services contractors 

16 under the program. 

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

18 award personal services contracts under this section shall 

19 terminate on December 31, 2008. A contract entered into 

20 prior to the termination date under this paragraph may 

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

22 (d) OTHER AUTHORITIES NOT AFFECTED.—The au23 thority under this section is in addition to any other au24 thority of the Inspector General to hire personal services 

25 contractors. 


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1 FUNDING TABLES

2 SEC. 1709. (a) Funds provided in this Act for the fol3 lowing accounts shall be made available for programs and 

4 countries in the amounts contained in the respective tables 

5 included in the report accompanying this Act: 

6 ‘‘Diplomatic and Consular Programs’’. 

7 ‘‘Educational and Cultural Exchange Pro8 grams’’. 

9 ‘‘International Disaster and Famine Assistance’’. 

10 ‘‘Economic Support Fund’’. 

11 ‘‘Assistance for Eastern Europe and Baltic 

12 States’’. 

13 ‘‘Democracy Fund’’. 

14 ‘‘Migration and Refugee Assistance’’. 

15 ‘‘Nonproliferation, Anti-Terrorism, Demining 

16 and Related Programs’’. 

17 ‘‘Peacekeeping Operations’’. 

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

19 contained in the tables in the accompanying report shall 

20 be subject to the regular notification procedures of the Com21 mittees on Appropriations and section 634A of the Foreign 

22 Assistance Act of 1961. 

23 BENCHMARKS FOR CERTAIN RECONSTRUCTION ASSISTANCE

24 FOR IRAQ

25 SEC. 1710. (a) BENCHMARKS.—Notwithstanding any 

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1 priated by this Act for assistance for Iraq under the head2 ings ‘‘Economic Support Fund’’ and ‘‘International Nar3 cotics and Law Enforcement’’ shall be withheld from obliga4 tion until the President certifies to the Committees on Ap5 propriations and Foreign Relations of the Senate and the 

6 Committees on Appropriations and Foreign Affairs of the 

7 House of Representatives that the Government of Iraq has— 

8 (1) enacted a broadly accepted hydro-carbon law 

9 that equitably shares oil revenues among all Iraqis; 

10 (2) adopted legislation necessary for the conduct 

11 of provincial and local elections, taken steps to imple12 ment such legislation, and set a schedule to conduct 

13 provincial and local elections; 

14 (3) reformed current laws governing the de15 Baathification process to allow for more equitable 

16 treatment of individuals affected by such laws; 

17 (4) amended the Constitution of Iraq consistent 

18 with the principles contained in Article 137 of such 

19 constitution; and 

20 (5) allocated and begun expenditure of 

21 $10,000,000,000 in Iraqi revenues for reconstruction 

22 projects, including delivery of essential services, on an 

23 equitable basis. 

24 (b) EXEMPTIONS.—The requirement to withhold funds 

25 from obligation pursuant to subsection (a) shall not apply 


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1 with respect to funds made available under the heading 

2 ‘‘Economic Support Fund’’ that are administered by the 

3 United States Agency for International Development for 

4 continued support for the Community Action Program, as5 sistance for civilian victims of the military operations, and 

6 the Community Stabilization Program in Iraq, or for pro7 grams and activities to promote democracy, governance, 

8 human rights, and rule of law. 

9 (c) REPORT.—At the time the President certifies to the 

10 Committees on Appropriations and Foreign Relations of the 

11 Senate and the Committees on Appropriations and Foreign 

12 Affairs of the House of Representatives that the Government 

13 of Iraq has met the benchmarks described in subsection (a), 

14 the President shall submit to such Committees a report that 

15 contains a detailed description of the specific actions that 

16 the Government of Iraq has taken to meet each of the bench17 marks referenced in the certification. 

18 SPENDING PLAN AND NOTIFICATION PROCEDURES

19 SEC. 1711. Not later than 45 days after enactment of 

20 this Act the Secretary of State shall submit to the Commit21 tees on Appropriations a report detailing planned expendi22 tures for funds appropriated under the headings in this 

23 chapter, except for funds appropriated under the headings 

24 ‘‘International Disaster and Famine Assistance’’, ‘‘Office of 

25 the United States Agency for International Development 

26 Inspector General’’, and ‘‘Office of the Inspector General’’: 


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1 Provided, That funds appropriated under the headings in 

2 this chapter, except for funds appropriated under the head3 ings named in this section, shall be subject to the regular 

4 notification procedures of the Committees on Appropria5 tions. 

6 CIVILIAN RESERVE CORPS

7 SEC. 1712. Of the funds appropriated by this Act 

8 under the headings ‘‘DIPLOMATIC AND CONSULAR PRO9 GRAMS’’ and ‘‘ECONOMIC SUPPORT FUND’’ (except for the 

10 Community Action Program), up to $50,000,000 may be 

11 made available to support and maintain a civilian reserve 

12 corps. Funds made available under this section shall be sub13 ject to the regular notification procedures of the Committees 

14 on Appropriations. 

15 TITLE II 

16 KATRINA RECOVERY, VETERANS’ CARE AND FOR 

17 OTHER PURPOSES 

18 CHAPTER 1 

19 GENERAL PROVISION—THIS CHAPTER 

20 EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM

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

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

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


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1 CHAPTER 2 

2 DEPARTMENT OF JUSTICE 

3 OFFICE OF JUSTICE PROGRAMS

4 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

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

6 Enforcement Assistance’’, for discretionary grants author7 ized by subpart 2 of part E, of title I of the Omnibus Crime 

8 Control and Safe Streets Act of 1968, notwithstanding the 

9 provisions of section 511 of said Act, $170,000,000, to re10 main available until September 30, 2008: Provided, That 

11 of the amount made available under this heading, 

12 $70,000,000 shall be for local law enforcement initiatives 

13 in the gulf coast region related to the aftermath of Hurri14 canes Katrina and Rita, of which no less than $55,000,000 

15 shall be for the State of Louisiana: Provided further, That 

16 of the amount made available under this heading, 

17 $100,000,000 shall be for reimbursing State and local law 

18 enforcement entities for security and related costs, including 

19 overtime, associated with the 2008 Presidential Candidate 

20 Nominating Conventions, of which $50,000,000 shall be for 

21 the city of Denver, Colorado and $50,000,000 shall be for 

22 the city of St. Paul, Minnesota: Provided further, That the 

23 Department of Justice shall report to the Committees on 

24 Appropriations of the House and the Senate on a quarterly 


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1 basis on the expenditure of the funds provided in the pre2 vious proviso. 

3 DEPARTMENT OF COMMERCE 

4 NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

5 OPERATIONS, RESEARCH, AND FACILITIES

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

7 and Facilities’’, for necessary expenses related to fisheries 

8 disasters, $165,900,000, to remain available until Sep9 tember 30, 2008: Provided, That of the amount provided 

10 under this heading, the National Marine Fisheries Service 

11 shall cause $60,400,000 to be distributed among eligible re12 cipients of assistance for the commercial fishery failure des13 ignated under section 312(a) of the Magnuson-Stevens Fish14 ery Conservation and Management Act (16 U.S.C. 

15 1861a(a)) and declared by the Secretary of Commerce on 

16 August 10, 2006: Provided further, That of the amount pro17 vided under this heading, $105,500,000 shall be for nec18 essary expenses related to the consequences of Hurricanes 

19 Katrina and Rita on shrimp and fishing industries. 

20 PROCUREMENT, ACQUISITION, AND CONSTRUCTION

21 For an additional amount for ‘‘Procurement, Acquisi22 tion and Construction’’, for necessary expenses related to 

23 disaster response and preparedness of the Gulf of Mexico 

24 coast, $6,000,000, to remain available until September 30, 

25 2008. 


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1 FISHERIES DISASTER MITIGATION FUND

2 For an additional amount for a ‘‘Fisheries Disaster 

3 Mitigation Fund’’, $50,000,000, to remain available until 

4 expended for use in mitigating the effects of commercial 

5 fisheries failures and fishery resource disasters as deter6 mined under the Magnuson Stevens Act (16 U.S.C. 1801 

7 et seq.) or the Interjurisdictional Fisheries Act (16 U.S.C. 

8 4101 et seq.): Provided, That the Secretary of Commerce 

9 shall obligate funds provided under this heading according 

10 to the Magnuson Stevens Conservation Act, as amended, the 

11 Interjurisdictional Fisheries Act, as amended, or other Acts 

12 as the Secretary determines to be appropriate. 

13 GENERAL PROVISION—THIS CHAPTER 

14 SEC. 2201. Up to $48,000,000 of amounts made avail15 able to the National Aeronautics and Space Administration 

16 in Public Law 109–148 and Public Law 109–234 for emer17 gency hurricane and other natural disaster-related expenses 

18 may be used to reimburse hurricane-related costs incurred 

19 by NASA in fiscal year 2005. 


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1 CHAPTER 3 

2 DEPARTMENT OF DEFENSE—CIVIL 

3 DEPARTMENT OF THE ARMY 

4 CORPS OF ENGINEERS—CIVIL

5 CONSTRUCTION

6 For an additional amount for ‘‘Construction’’ for nec7 essary expenses related to the consequences of Hurricane 

8 Katrina and other hurricanes of the 2005 season, 

9 $150,000,000, to remain available until expended, which 

10 may be used to continue construction of projects related to 

11 interior drainage for the greater New Orleans metropolitan 

12 area. 

13 OPERATION AND MAINTENANCE

14 For an additional amount for ‘‘Operation and Mainte15 nance’’ to dredge navigation channels related to the con16 sequences of Hurricane Katrina and other hurricanes of the 

17 2005 season, $3,000,000, to remain available until ex18 pended. 

19 FLOOD CONTROL AND COASTAL EMERGENCIES

20 For an additional amount for ‘‘Flood Control and 

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

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

23 relating to the consequences of Hurricanes Katrina and 

24 Rita and for other purposes, $1,557,700,000, to remain 

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

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


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1 Army to carry out projects and measures to provide the 

2 level of protection necessary to achieve the certification re3 quired for the 100-year level of flood protection in accord4 ance with the national flood insurance program under the 

5 base flood elevations in existence at the time of construction 

6 of the enhancements for the West Bank and Vicinity and 

7 Lake Ponchartrain and Vicinity, Louisiana, projects, as de8 scribed under the heading ‘‘Flood Control and Coastal 

9 Emergencies’’, in chapter 3 of Public Law 109–148: Pro10 vided further, That $150,000,000 of the amount provided 

11 may be used to support emergency operations, repairs and 

12 other activities in response to flood, drought and earthquake 

13 emergencies as authorized by law: Provided further, That 

14 $107,700,000 of the amount provided may be used to imple15 ment the projects for hurricane storm damage reduction, 

16 flood damage reduction, and ecosystem restoration within 

17 Hancock, Harrison, and Jackson Counties, Mississippi sub18 stantially in accordance with the Report of the Chief of En19 gineers dated December 31, 2006, and entitled ‘‘Mississippi, 

20 Coastal Improvements Program Interim Report, Hancock, 

21 Harrison, and Jackson Counties, Mississippi’’: Provided 

22 further, That projects authorized for implementation under 

23 this Chief’s report shall be carried out at full Federal ex24 pense, except that the non-Federal interests shall be respon25 sible for providing any lands, easements, rights-of-way, disVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00228 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 posal areas, and relocations required for construction of the 

2 project and for all costs associated with operation and 

3 maintenance of the project: Provided further, That any 

4 project using funds appropriated under this heading shall 

5 be initiated only after non-Federal interests have entered 

6 into binding agreements with the Secretary requiring the 

7 non-Federal interests to pay 100 percent of the operation, 

8 maintenance, repair, replacement, and rehabilitation costs 

9 of the project and to hold and save the United States free 

10 from damages due to the construction or operation and 

11 maintenance of the project, except for damages due to the 

12 fault or negligence of the United States or its contractors. 

13 DEPARTMENT OF INTERIOR 

14 BUREAU OF RECLAMATION

15 WATER AND RELATED RESOURCES

16 For an additional amount for ‘‘Water and Related Re17 sources’’, $18,000,000, to remain available until expended 

18 for drought assistance: Provided, That drought assistance 

19 may be provided under the Reclamation States Drought 

20 Emergency Act or other applicable Reclamation authorities 

21 to assist drought plagued areas of the West. 

22 GENERAL PROVISIONS—THIS CHAPTER 

23 SEC. 2301. The Secretary is authorized and directed 

24 to reimburse local governments for expenses they have in25 curred in storm-proofing pumping stations, constructing 


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1 safe houses for operators, and other interim flood control 

2 measures in and around the New Orleans metropolitan 

3 area, provided the Secretary determines those elements of 

4 work and related expenses to be integral to the overall plan 

5 to ensure operability of the stations during hurricanes, 

6 storms and high water events and the flood control plan 

7 for the area. 

8 SEC. 2302. The limitation concerning total project 

9 costs in section 902 of the Water Resources Development 

10 Act of 1986, as amended (33 U.S.C. 2280), shall not apply 

11 during fiscal year 2008 to any water resources project for 

12 which funds were made available during fiscal year 2007. 

13 SEC. 2303. (a) The Secretary of the Army is author14 ized and directed to utilize funds remaining available for 

15 obligation from the amounts appropriated in chapter 3 of 

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

17 Coastal Emergencies’’ for projects in the greater New Orle18 ans metropolitan area to prosecute these projects in a man19 ner which promotes the goal of continuing work at an opti20 mal pace, while maximizing, to the greatest extent prac21 ticable, levels of protection to reduce the risk of storm dam22 age to people and property. 

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

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

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


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1 (c) Any reallocation of funds that are necessary to ac2 complish the goal established in subsection (a) are author3 ized. Reallocation of funds in excess of $250,000,000 or 50 

4 percent, whichever is less, of the individual amounts speci5 fied in chapter 3 of Public Law 109–234 require notifica6 tions of the House and Senate Committees on Appropria7 tion. 

8 SEC. 2304. The Chief of Engineers shall investigate the 

9 overall technical advantages, disadvantages and operational 

10 effectiveness of operating the new pumping stations at the 

11 mouths of the 17th Street, Orleans Avenue and London Ave12 nue canals in the New Orleans area directed for construc13 tion in Public Law 109–234 concurrently or in series with 

14 existing pumping stations serving these canals and the ad15 vantages, disadvantages and technical operational effective16 ness of removing the existing pumping stations and config17 uring the new pumping stations and associated canals to 

18 handle all needed discharges; and the advantages, disadvan19 tages and technical operational effectiveness of replacing or 

20 improving the floodwalls and levees adjacent to the three 

21 outfall canals: Provided, That the analysis should be con22 ducted at Federal expense: Provided further, That the anal23 ysis shall be completed and furnished to the Congress not 

24 later than three months after enactment of this Act. 


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1 SEC. 2305. Using funds made available in Chapter 3 

2 under title II of Public Law 109–234 (120 Stat. 453), under 

3 the heading ‘‘Investigations’’, the Secretary of the Army, in 

4 consultation with other agencies and the State of Louisiana 

5 shall accelerate completion as practicable the final report 

6 of the Chief of Engineers recommending a comprehensive 

7 plan to deauthorize deep draft navigation on the Mis8 sissippi River Gulf Outlet: Provided, That the plan shall 

9 incorporate and build upon the Interim Mississippi River 

10 Gulf Outlet Deep-Draft De-Authorization Report submitted 

11 to Congress in December 2006 pursuant to Public Law 109– 

12 234. 

13 SEC. 2306. (a) Section 111 of Public Law 108–137 

14 (117 Stat. 1835) is amended by— 

15 (1) adding the following language at the end of 

16 subsection (a): 

17 ‘‘Such activities also may include the provision of fi18 nancial assistance to facilitate the buy-out of properties lo19 cated in areas identified by the State of Oklahoma as areas 

20 that are or will be at risk of damage caused by land subsid21 ence and other necessary and closely associated properties 

22 otherwise identified by the State of Oklahoma; however, any 

23 buyout of such properties shall not be considered to be part 

24 of a Federally assisted program or project for purposes of 


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1 42 U.S.C. 4601 et. seq., consistent with section 2301 of Pub2 lic Law 109–234 (120 Stat. 455–456).’’; and 

3 (2) striking the first sentence of subsection (d) 

4 and inserting the following language in lieu thereof: 

5 ‘‘(d) Non-Federal interests shall be responsible for op6 erating and maintaining any restoration alternatives con7 structed or carried out pursuant to this section.’’. 

8 CHAPTER 4 

9 SMALL BUSINESS ADMINISTRATION 

10 DISASTER LOANS PROGRAM ACCOUNT

11 (INCLUDING TRANSFER OF FUNDS)

12 For an additional amount for ‘‘Disaster Loans Pro13 gram Account’’ for administrative expenses to carry out the 

14 disaster loan program, $25,069,000, to remain available 

15 until expended, which may be transferred to and merged 

16 with ‘‘Small Business Administration, Salaries and Ex17 penses’’. 

18 GENERAL PROVISIONS—THIS CHAPTER 

19 SEC. 2401. ECONOMIC INJURY DISASTER LOANS. (a) 

20 DEFINITIONS.—In this section— 

21 (1) the term ‘‘Administrator’’ means the Admin22 istrator of the Small Business Administration; 

23 (2) the term ‘‘covered small business concern’’ 

24 means a small business concern— 


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1 (A) that is located in any area in Lou2 isiana or Mississippi for which the President de3 clared a major disaster because of Hurricane 

4 Katrina of 2005 or Hurricane Rita of 2005; 

5 (B) that has not more than 50 full-time em6 ployees; and 

7 (C) that— 

8 (i)(I) suffered a substantial economic 

9 injury as a result of Hurricane Katrina of 

10 2005 or Hurricane Rita of 2005, because of 

11 a reduction in travel or tourism to the area 

12 described in subparagraph (A); and 

13 (II) demonstrates that, during the 1- 

14 year period ending on August 28, 2005, not 

15 less than 45 percent of the revenue of that 

16 small business concern resulted from tour17 ism or travel related sales; or 

18 (ii)(I) suffered a substantial economic 

19 injury as a result of Hurricane Katrina of 

20 2005 or Hurricane Rita of 2005; and 

21 (II) operates in a parish or county for 

22 which the population on the date of enact23 ment of this Act, as determined by the Ad24 ministrator, is not greater than 75 percent 

25 of the population of that parish or county 


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1 before August 28, 2005, based on the most 

2 recent United States population estimate 

3 available before August 28, 2005; 

4 (3) the term ‘‘major disaster’’ has the meaning 

5 given that term in section 102 of the Robert T. Staf6 ford Disaster Relief and Emergency Assistance Act 

7 (42 U.S.C. 5122); and 

8 (4) the term ‘‘small business concern’’ has the 

9 meaning given that term in section 3 of the Small 

10 Business Act (15 U.S.C. 632). 

11 (b) APPROPRIATION.— 

12 (1) IN GENERAL.—There are appropriated, out 

13 of any money in the Treasury not otherwise appro14 priated, $25,000,000 to the Administrator, which, ex15 cept as provided in paragraph (2) or (3), shall be 

16 used for loans under section 7(b)(2) of the Small 

17 Business Act (15 U.S.C. 636(b)(2)) to covered small 

18 business concerns. 

19 (2) ADMINISTRATIVE EXPENSES.—Of the 

20 amounts made available under paragraph (1), not 

21 more than $8,750,000 may be transferred to and 

22 merged with ‘‘Salaries and Expenses’’ to carry out 

23 the disaster loan program of the Small Business Ad24 ministration. 


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1 (3) OTHER USES OF FUNDS.—The Administrator 

2 may use amounts made available under paragraph 

3 (1) for other purposes authorized for amounts in the 

4 ‘‘Disaster Loans Program Account’’ or transfer such 

5 amounts to and merge such amounts with ‘‘Salaries 

6 and Expenses’’, if— 

7 (A) such amounts are— 

8 (i) not obligated on the later of 5 

9 months after the date of enactment of this 

10 Act and August 29, 2007; or 

11 (ii) necessary to provide assistance in 

12 the event of a major disaster; and 

13 (B) not later than 5 days before any such 

14 use or transfer of amounts, the Administrator 

15 provides written notification of such use or 

16 transfer to the Committee on Appropriations of 

17 the Senate and the Committee on Appropriations 

18 of the House of Representatives. 

19 SEC. 2402. OTHER PROGRAMS. (a) HUBZONES.—Sec20 tion 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 

21 amended— 

22 (1) in paragraph (1)— 

23 (A) in subparagraph (D), by striking ‘‘or’’; 

24 (B) in subparagraph (E), by striking the 

25 period at the end and inserting ‘‘; or’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(F) an area in which the President has de3 clared a major disaster (as that term is defined 

4 in section 102 of the Robert T. Stafford Disaster 

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

6 5122)) as a result of Hurricane Katrina of Au7 gust 2005 or Hurricane Rita of September 2005, 

8 during the time period described in paragraph 

9 (8).’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(8) TIME PERIOD.—The time period for the 

12 purposes of paragraph (1)(F)— 

13 ‘‘(A) shall be the 2-year period beginning on 

14 the later of the date of enactment of this para15 graph and August 29, 2007; and 

16 ‘‘(B) may, at the discretion of the Adminis17 trator, be extended to be the 3-year period begin18 ning on the later of the date of enactment of this 

19 paragraph and August 29, 2007.’’. 

20 (b) TERMINATION OF PROGRAM.—Section 711(c) of the 

21 Small Business Competitive Demonstration Program Act of 

22 1988 (15 U.S.C. 644 note) is amended by inserting after 

23 ‘‘January 1, 1989’’ the following: ‘‘, and shall terminate 

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1 erans’ Care, Katrina Recovery, and Iraq Accountability 

2 Appropriations Act, 2007’’. 

3 SEC. 2403. RESERVIST PROGRAMS. (a) DEFINI4 TIONS.—In this section— 

5 (1) the term ‘‘activated’’ means receiving an 

6 order placing a Reservist on active duty; 

7 (2) the term ‘‘active duty’’ has the meaning 

8 given that term in section 101 of title 10, United 

9 States Code; 

10 (3) the terms ‘‘Administration’’ and ‘‘Adminis11 trator’’ mean the Small Business Administration and 

12 the Administrator thereof, respectively; 

13 (4) the term ‘‘Reservist’’ means a member of a 

14 reserve component of the Armed Forces, as described 

15 in section 10101 of title 10, United States Code; 

16 (5) the term ‘‘Service Corps of Retired Execu17 tives’’ means the Service Corps of Retired Executives 

18 authorized by section 8(b)(1) of the Small Business 

19 Act (15 U.S.C. 637(b)(1)); 

20 (6) the term ‘‘small business concern’’ has the 

21 meaning given that term in section 3 of the Small 

22 Business Act (15 U.S.C. 632); 

23 (7) the term ‘‘small business development center’’ 

24 means a small business development center described 


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1 in section 21 of the Small Business Act (15 U.S.C. 

2 648); and 

3 (8) the term ‘‘women’s business center’’ means a 

4 women’s business center described in section 29 of the 

5 Small Business Act (15 U.S.C. 656). 

6 (b) APPLICATION PERIOD.—Section 7(b)(3)(C) of the 

7 Small Business Act (15 U.S.C. 636(b)(3)(C)) is amended 

8 by striking ‘‘90 days’’ and inserting ‘‘1 year’’. 

9 (c) PRE-CONSIDERATION PROCESS.— 

10 (1) DEFINITION.—In this subsection, the term 

11 ‘‘eligible Reservist’’ means a Reservist who— 

12 (A) has not been ordered to active duty; 

13 (B) expects to be ordered to active duty dur14 ing a period of military conflict; and 

15 (C) can reasonably demonstrate that the 

16 small business concern for which that Reservist 

17 is a key employee will suffer economic injury in 

18 the absence of that Reservist. 

19 (2) ESTABLISHMENT.—Not later than 6 months 

20 after the date of enactment of this Act, the Adminis21 trator shall establish a pre-consideration process, 

22 under which the Administrator— 

23 (A) may collect all relevant materials nec24 essary for processing a loan to a small business 

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1 ness Act (15 U.S.C. 636(b)(3)) before an eligible 

2 Reservist employed by that small business con3 cern is activated; and 

4 (B) shall distribute funds for any loan ap5 proved under subparagraph (A) if that eligible 

6 Reservist is activated. 

7 (d) OUTREACH AND TECHNICAL ASSISTANCE PRO8 GRAM.— 

9 (1) IN GENERAL.—Not later than 6 months after 

10 the date of enactment of this Act, the Administrator, 

11 in consultation with the Secretary of Veterans Affairs 

12 and the Secretary of Defense, shall develop a com13 prehensive outreach and technical assistance program 

14 (in this subsection referred to as the ‘‘program’’) to— 

15 (A) market the loans available under section 

16 7(b)(3) of the Small Business Act (15 U.S.C. 

17 636(b)(3)) to Reservists, and family members of 

18 Reservists, that are on active duty and that are 

19 not on active duty; and 

20 (B) provide technical assistance to a small 

21 business concern applying for a loan under that 

22 section. 

23 (2) COMPONENTS.—The program shall— 

24 (A) incorporate appropriate websites main25 tained by the Administration, the Department of 


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1 Veterans Affairs, and the Department of Defense; 

2 and 

3 (B) require that information on the pro4 gram is made available to small business con5 cerns directly through— 

6 (i) the district offices and resource 

7 partners of the Administration, including 

8 small business development centers, women’s 

9 business centers, and the Service Corps of 

10 Retired Executives; and 

11 (ii) other Federal agencies, including 

12 the Department of Veterans Affairs and the 

13 Department of Defense. 

14 (3) REPORT.— 

15 (A) IN GENERAL.—Not later than 6 months 

16 after the date of enactment of this Act, and every 

17 6 months thereafter until the date that is 30 

18 months after such date of enactment, the Admin19 istrator shall submit to Congress a report on the 

20 status of the program. 

21 (B) CONTENTS.—Each report submitted 

22 under subparagraph (A) shall include— 

23 (i) for the 6-month period ending on 

24 the date of that report— 


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1 (I) the number of loans approved 

2 under section 7(b)(3) of the Small 

3 Business Act (15 U.S.C. 636(b)(3)); 

4 (II) the number of loans disbursed 

5 under that section; and 

6 (III) the total amount disbursed 

7 under that section; and 

8 (ii) recommendations, if any, to make 

9 the program more effective in serving small 

10 business concerns that employ Reservists. 

11 CHAPTER 5 

12 DEPARTMENT OF HOMELAND SECURITY 

13 FEDERAL EMERGENCY MANAGEMENT AGENCY

14 DISASTER RELIEF

15 For an additional amount for ‘‘Disaster Relief’’ for 

16 necessary expenses under the Robert T. Stafford Disaster 

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

18 seq.), $4,310,000,000, to remain available until expended. 

19 GENERAL PROVISIONS—THIS CHAPTER 

20 SEC. 2501. (a) IN GENERAL.—Notwithstanding any 

21 other provision of law, including any agreement, the Fed22 eral share of assistance, including direct Federal assistance, 

23 provided for the States of Louisiana, Mississippi, Alabama, 

24 and Texas in connection with Hurricanes Katrina and 

25 Rita under sections 403, 406, 407, and 408 of the Robert 


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1 T. Stafford Disaster Relief and Emergency Assistance Act 

2 (42 U.S.C. 5170b, 5172, 5173, and 5174) shall be 100 per3 cent of the eligible costs under such sections. 

4 (b) APPLICABILITY.— 

5 (1) IN GENERAL.—Subject to paragraph (2), the 

6 Federal share provided by subsection (a) shall apply 

7 to disaster assistance applied for before the date of en8 actment of this Act. 

9 (2) LIMITATION.—In the case of disaster assist10 ance provided under sections 403, 406, and 407 of the 

11 Robert T. Stafford Disaster Relief and Emergency As12 sistance Act, the Federal share provided by subsection 

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

14 for which applications have been prepared for the 

15 Federal Emergency Management Agency before the 

16 date of enactment of this Act. 

17 SEC. 2502. (a) Section 2(a) of the Community Disaster 

18 Loan Act of 2005 (Public Law 109–88; 119 Stat. 2061) is 

19 amended by striking ‘‘: Provided further, That notwith20 standing section 417(c)(1) of the Stafford Act, such loans 

21 may not be canceled’’. 

22 (b) Chapter 4 of title II of the Emergency Supple23 mental Appropriations Act for Defense, the Global War on 

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

25 234; 120 Stat. 471) is amended under the heading ‘‘Disaster 


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1 Assistance Direct Loan Program Account’’ under the head2 ing ‘‘Federal Emergency Management Agency’’ under the 

3 heading ‘‘Department of Homeland Security’’, by striking 

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

5 of such Act, such loans may not be canceled:’’. 

6 SEC. 2503. Section 2401 of the Emergency Supple7 mental Appropriations Act for Defense, the Global War on 

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

9 234; 120 Stat. 460) is amended by striking ‘‘12 months’’ 

10 and inserting ‘‘24 months’’. 

11 CHAPTER 6 

12 DEPARTMENT OF THE INTERIOR 

13 BUREAU OF LAND MANAGEMENT

14 WILDLAND FIRE MANAGEMENT

15 (INCLUDING TRANSFER OF FUNDS)

16 For an additional amount for ‘‘Wildland Fire Man17 agement’’, $100,000,000, to remain available until ex18 pended, for urgent wildland fire suppression activities: Pro19 vided, That such funds shall only become available if funds 

20 previously provided for wildland fire suppression will be 

21 exhausted imminently and the Secretary of the Interior no22 tifies the House and Senate Committees on Appropriations 

23 in writing of the need for these additional funds: Provided 

24 further, That such funds are also available for repayment 

25 to other appropriations accounts from which funds were 

26 transferred for wildfire suppression. 


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1 UNITED STATES FISH AND WILDLIFE SERVICE

2 RESOURCE MANAGEMENT

3 For an additional amount for ‘‘Resource Manage4 ment’’ for the detection of highly pathogenic avian influenza 

5 in wild birds, including the investigation of morbidity and 

6 mortality events, targeted surveillance in live wild birds, 

7 and targeted surveillance in hunter-taken birds, $7,398,000, 

8 to remain available until September 30, 2008. 

9 NATIONAL PARK SERVICE

10 OPERATION OF THE NATIONAL PARK SYSTEM

11 For an additional amount for ‘‘Operation of the Na12 tional Park System’’ for the detection of highly pathogenic 

13 avian influenza in wild birds, including the investigation 

14 of morbidity and mortality events, $525,000, to remain 

15 available until September 30, 2008. 

16 HISTORIC PRESERVATION FUND

17 For an additional amount for the ‘‘Historic Preserva18 tion Fund’’ for necessary expenses related to the con19 sequences of Hurricane Katrina and other hurricanes of the 

20 2005 season, $15,000,000, to remain available until Sep21 tember 30, 2008: Provided, That the funds provided under 

22 this heading shall be provided to the State Historic Preser23 vation Officer, after consultation with the National Park 

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

25 impacted by Hurricanes Katrina or Rita: Provided further, 

26 That grants shall be for the preservation, stabilization, reVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00245 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 habilitation, and repair of historic properties listed in or 

2 eligible for the National Register of Historic Places, for 

3 planning and technical assistance: Provided further, That 

4 grants shall only be available for areas that the President 

5 determines to be a major disaster under section 102(2) of 

6 the Robert T. Stafford Disaster Relief and Emergency As7 sistance Act (42 U.S.C. 5122(2)) due to Hurricanes 

8 Katrina or Rita: Provided further, That individual grants 

9 shall not be subject to a non-Federal matching requirement: 

10 Provided further, That no more than 5 percent of funds pro11 vided under this heading for disaster relief grants may be 

12 used for administrative expenses. 

13 UNITED STATES GEOLOGICAL SURVEY

14 SURVEYS, INVESTIGATIONS, AND RESEARCH

15 For an additional amount for ‘‘Surveys, Investiga16 tions, and Research’’ for the detection of highly pathogenic 

17 avian influenza in wild birds, including the investigation 

18 of morbidity and mortality events, targeted surveillance in 

19 live wild birds, and targeted surveillance in hunter-taken 

20 birds, $5,270,000, to remain available until September 30, 

21 2008. 


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1 DEPARTMENT OF AGRICULTURE 

2 FOREST SERVICE

3 NATIONAL FOREST SYSTEM

4 For an additional amount for ‘‘National Forest Sys5 tem’’ for the implementation of a nationwide initiative to 

6 increase protection of national forest lands from foreign 

7 drug-trafficking organizations, including funding for addi8 tional law enforcement personnel, training, equipment and 

9 cooperative agreements, $12,000,000, to remain available 

10 until expended. 

11 WILDLAND FIRE MANAGEMENT

12 (INCLUDING TRANSFER OF FUNDS)

13 For an additional amount for ‘‘Wildland Fire Man14 agement’’, $400,000,000, to remain available until ex15 pended, for urgent wildland fire suppression activities: Pro16 vided, That such funds shall only become available if funds 

17 provided previously for wildland fire suppression will be 

18 exhausted imminently and the Secretary of Agriculture no19 tifies the House and Senate Committees on Appropriations 

20 in writing of the need for these additional funds: Provided 

21 further, That such funds are also available for repayment 

22 to other appropriation accounts from which funds were 

23 transferred for wildfire suppression. 

24 GENERAL PROVISIONS—THIS CHAPTER 

25 SEC. 2601. SECURE RURAL SCHOOLS AND COMMUNITY

26 SELF-DETERMINATION PROGRAM. (a) REAUTHORIZATION


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1 OF THE SECURE RURAL SCHOOLS AND COMMUNITY SELF2 DETERMINATION ACTOF 2000.—The Secure Rural Schools 

3 and Community Self-Determination Act of 2000 (16 U.S.C. 

4 500 note; Public Law 106–393) is amended by striking sec5 tions 1 through 403 and inserting the following: 

6 ‘‘SECTION 1. SHORT TITLE. 

7 ‘‘This Act may be cited as the ‘Secure Rural Schools 

8 and Community Self-Determination Act of 2000’. 

9 ‘‘SEC. 2. PURPOSES. 

10 ‘‘The purposes of this Act are— 

11 ‘‘(1) to stabilize and transition payments to 

12 counties to provide funding for schools and roads that 

13 supplements other available funds; 

14 ‘‘(2) to make additional investments in, and cre15 ate additional employment opportunities through, 

16 projects that— 

17 ‘‘(A)(i) improve the maintenance of existing 

18 infrastructure; 

19 ‘‘(ii) implement stewardship objectives that 

20 enhance forest ecosystems; and 

21 ‘‘(iii) restore and improve land health and 

22 water quality; 

23 ‘‘(B) enjoy broad-based support; and 

24 ‘‘(C) have objectives that may include— 


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1 ‘‘(i) road, trail, and infrastructure 

2 maintenance or obliteration; 

3 ‘‘(ii) soil productivity improvement; 

4 ‘‘(iii) improvements in forest ecosystem 

5 health; 

6 ‘‘(iv) watershed restoration and main7 tenance; 

8 ‘‘(v) the restoration, maintenance, and 

9 improvement of wildlife and fish habitat; 

10 ‘‘(vi) the control of noxious and exotic 

11 weeds; and 

12 ‘‘(vii) the reestablishment of native spe13 cies; and 

14 ‘‘(3) to improve cooperative relationships 

15 among— 

16 ‘‘(A) the people that use and care for Fed17 eral land; and 

18 ‘‘(B) the agencies that manage the Federal 

19 land. 

20 ‘‘SEC. 3. DEFINITIONS. 

21 ‘‘In this Act: 

22 ‘‘(1) ADJUSTED SHARE.—The term ‘adjusted 

23 share’ means the number equal to the quotient ob24 tained by dividing— 


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1 ‘‘(A) the number equal to the quotient ob2 tained by dividing— 

3 ‘‘(i) the base share for the eligible coun4 ty; by 

5 ‘‘(ii) the income adjustment for the eli6 gible county; by 

7 ‘‘(B) the number equal to the sum of the 

8 quotients obtained under subparagraph (A) and 

9 paragraph (8)(A) for all eligible counties. 

10 ‘‘(2) BASE SHARE.—The term ‘base share’ means 

11 the number equal to the average of— 

12 ‘‘(A) the quotient obtained by dividing— 

13 ‘‘(i) the number of acres of Federal 

14 land described in paragraph (7)(A) in each 

15 eligible county; by 

16 ‘‘(ii) the total number acres of Federal 

17 land in all eligible counties in all eligible 

18 States; and 

19 ‘‘(B) the quotient obtained by dividing— 

20 ‘‘(i) the amount equal to the average of 

21 the 3 highest 25-percent payments and safe22 ty net payments made to each eligible State 

23 for each eligible county during the eligi24 bility period; by 


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1 ‘‘(ii) the amount equal to the sum of 

2 the averages calculated under clause (i) and 

3 paragraph (9)(B)(i) for all eligible counties 

4 in all eligible States during the eligibility 

5 period. 

6 ‘‘(3) COUNTY PAYMENT.—The term ‘county pay7 ment’ means the payment for an eligible county cal8 culated under section 101(b). 

9 ‘‘(4) ELIGIBLE COUNTY.—The term ‘eligible 

10 county’ means any county that— 

11 ‘‘(A) contains Federal land (as defined in 

12 paragraph (7)); and 

13 ‘‘(B) elects to receive a share of the State 

14 payment or the county payment under section 

15 102(b). 

16 ‘‘(5) ELIGIBILITY PERIOD.—The term ‘eligibility 

17 period’ means fiscal year 1986 through fiscal year 

18 1999. 

19 ‘‘(6) ELIGIBLE STATE.—The term ‘eligible State’ 

20 means a State or territory of the United States that 

21 received a 25-percent payment for 1 or more fiscal 

22 years of the eligibility period. 

23 ‘‘(7) FEDERAL LAND.—The term ‘Federal land’ 

24 means— 


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1 ‘‘(A) land within the National Forest Sys2 tem, as defined in section 11(a) of the Forest and 

3 Rangeland Renewable Resources Planning Act of 

4 1974 (16 U.S.C. 1609(a)) exclusive of the Na5 tional Grasslands and land utilization projects 

6 designated as National Grasslands administered 

7 pursuant to the Act of July 22, 1937 (7 U.S.C. 

8 1010–1012); and 

9 ‘‘(B) such portions of the revested Oregon 

10 and California Railroad and reconveyed Coos 

11 Bay Wagon Road grant land as are or may 

12 hereafter come under the jurisdiction of the De13 partment of the Interior, which have heretofore 

14 or may hereafter be classified as timberlands, 

15 and power-site land valuable for timber, that 

16 shall be managed, except as provided in the 

17 former section 3 of the Act of August 28, 1937 

18 (50 Stat. 875; 43 U.S.C. 1181c), for permanent 

19 forest production. 

20 ‘‘(8) 50-PERCENTADJUSTED SHARE.—The term 

21 ‘50-percent adjusted share’ means the number equal to 

22 the quotient obtained by dividing— 

23 ‘‘(A) the number equal to the quotient ob24 tained by dividing— 


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1 ‘‘(i) the 50-percent base share for the 

2 eligible county; by 

3 ‘‘(ii) the income adjustment for the eli4 gible county; by 

5 ‘‘(B) the number equal to the sum of the 

6 quotients obtained under subparagraph (A) and 

7 paragraph (1)(A) for all eligible counties. 

8 ‘‘(9) 50-PERCENTBASE SHARE.—The term ‘50- 

9 percent base share’ means the number equal to the av10 erage of— 

11 ‘‘(A) the quotient obtained by dividing— 

12 ‘‘(i) the number of acres of Federal 

13 land described in paragraph (7)(B) in each 

14 eligible county; by 

15 ‘‘(ii) the total number acres of Federal 

16 land in all eligible counties in all eligible 

17 States; and 

18 ‘‘(B) the quotient obtained by dividing— 

19 ‘‘(i) the amount equal to the average of 

20 the 3 highest 50-percent payments made to 

21 each eligible county during the eligibility 

22 period; by 

23 ‘‘(ii) the amount equal to the sum of 

24 the averages calculated under clause (i) and 

25 paragraph (2)(B)(i) for all eligible counties 


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1 in all eligible States during the eligibility 

2 period. 

3 ‘‘(10) 50-PERCENTPAYMENT.—The term ‘50-per4 cent payment’ means the payment that is the sum of 

5 the 50-percent share otherwise paid to a county pur6 suant to title II of the Act of August 28, 1937 (chap7 ter 876; 50 Stat. 875; 43 U.S.C. 1181f), and the pay8 ment made to a county pursuant to the Act of May 

9 24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f– 

10 1 et seq.). 

11 ‘‘(11) FULL FUNDING AMOUNT.—The term ‘full 

12 funding amount’ means— 

13 ‘‘(A) $526,079,656 for fiscal year 2007; 

14 ‘‘(B) $520,000,000 for fiscal year 2008; and 

15 ‘‘(C) for fiscal year 2009 and each fiscal 

16 year thereafter, the amount that is equal to 90 

17 percent of the full funding amount for the pre18 ceding fiscal year. 

19 ‘‘(12) INCOME ADJUSTMENT.—The term ‘income 

20 adjustment’ means the square of the quotient obtained 

21 by dividing— 

22 ‘‘(A) the per capita personal income for 

23 each eligible county; by 

24 ‘‘(B) the median per capita personal income 

25 of all eligible counties. 


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1 ‘‘(13) PER CAPITA PERSONAL INCOME.—The 

2 term ‘per capita personal income’ means the most re3 cent per capita personal income data, as determined 

4 by the Bureau of Economic Analysis. 

5 ‘‘(14) SAFETY NET PAYMENTS.—The term ‘safety 

6 net payments’ means the special payment amounts 

7 paid to States and counties required by section 13982 

8 or 13983 of the Omnibus Budget Reconciliation Act 

9 of 1993 (Public Law 103–66; 16 U.S.C. 500 note; 43 

10 U.S.C. 1181f note). 

11 ‘‘(15) SECRETARY CONCERNED.—The term ‘Sec12 retary concerned’ means— 

13 ‘‘(A) the Secretary of Agriculture or the des14 ignee of the Secretary of Agriculture with respect 

15 to the Federal land described in paragraph 

16 (7)(A); and 

17 ‘‘(B) the Secretary of the Interior or the des18 ignee of the Secretary of the Interior with respect 

19 to the Federal land described in paragraph 

20 (7)(B). 

21 ‘‘(16) STATE PAYMENT.—The term ‘State pay22 ment’ means the payment for an eligible State cal23 culated under section 101(a). 

24 ‘‘(17) 25-PERCENTPAYMENT.—The term ‘25-per25 cent payment’ means the payment to States required 


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1 by the sixth paragraph under the heading of ‘FOREST

2 SERVICE’ in the Act of May 23, 1908 (35 Stat. 260; 

3 16 U.S.C. 500), and section 13 of the Act of March 

4 1, 1911 (36 Stat. 963; 16 U.S.C. 500). 

5 ‘‘TITLE I—SECURE PAYMENTS 

6 FOR STATES AND COUNTIES 

7 CONTAINING FEDERAL LAND 

8 ‘‘SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING 

9 FEDERAL LAND. 

10 ‘‘(a) STATE PAYMENT.—For each of fiscal years 2007 

11 through 2011, the Secretary of Agriculture shall calculate 

12 for each eligible State an amount equal to the sum of the 

13 products obtained by multiplying— 

14 ‘‘(1) the adjusted share for each eligible county 

15 within the eligible State; by 

16 ‘‘(2) the full funding amount for the fiscal year. 

17 ‘‘(b) COUNTY PAYMENT.—For each of fiscal years 2007 

18 through 2011, the Secretary of the Interior shall calculate 

19 for each eligible county that received a 50-percent payment 

20 during the eligibility period an amount equal to the product 

21 obtained by multiplying— 

22 ‘‘(1) the 50-percent adjusted share for the eligible 

23 county; by 

24 ‘‘(2) the full funding amount for the fiscal year. 


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1 ‘‘SEC. 102. PAYMENTS TO STATES AND COUNTIES. 

2 ‘‘(a) PAYMENT AMOUNTS.—Except as provided in sec3 tion 103, the Secretary of the Treasury shall pay to— 

4 ‘‘(1) a State an amount equal to the sum of the 

5 amounts elected under subsection (b) by each county 

6 within the State for— 

7 ‘‘(A) if the county is eligible for the 25-per8 cent payment, the share of the 25-percent pay9 ment; or 

10 ‘‘(B) the share of the State payment of the 

11 eligible county; and 

12 ‘‘(2) a county an amount equal to the amount 

13 elected under subsection (b) by each county for— 

14 ‘‘(A) if the county is eligible for the 50-per15 cent payment, the 50-percent payment; or 

16 ‘‘(B) the county payment for the eligible 

17 county. 

18 ‘‘(b) ELECTION TO RECEIVE PAYMENT AMOUNT.— 

19 ‘‘(1) ELECTION; SUBMISSION OF RESULTS.— 

20 ‘‘(A) IN GENERAL.—The election to receive 

21 a share of the State payment, the county pay22 ment, a share of the State payment and the 

23 county payment, a share of the 25-percent pay24 ment, the 50-percent payment, or a share of the 

25 25-percent payment and the 50-percent payment, 

26 as applicable, shall be made at the discretion of 


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1 each affected county by August 1, 2007, and Au2 gust 1 of each second fiscal year thereafter, in ac3 cordance with paragraph (2), and transmitted to 

4 the Secretary concerned by the Governor of each 

5 eligible State. 

6 ‘‘(B) FAILURE TO TRANSMIT.—If an elec7 tion for an affected county is not transmitted to 

8 the Secretary concerned by the date specified 

9 under subparagraph (A), the affected county 

10 shall be considered to have elected to receive a 

11 share of the State payment, the county payment, 

12 or a share of the State payment and the county 

13 payment, as applicable. 

14 ‘‘(2) DURATION OF ELECTION.— 

15 ‘‘(A) IN GENERAL.—A county election to re16 ceive a share of the 25-percent payment or 50- 

17 percent payment, as applicable shall be effective 

18 for 2 fiscal years. 

19 ‘‘(B) FULL FUNDING AMOUNT.—If a county 

20 elects to receive a share of the State payment or 

21 the county payment, the election shall be effective 

22 for all subsequent fiscal years through fiscal year 

23 2011. 


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1 ‘‘(3) SOURCE OF PAYMENTAMOUNTS.—The pay2 ment to an eligible State or eligible county under this 

3 section for a fiscal year shall be derived from— 

4 ‘‘(A) any revenues, fees, penalties, or mis5 cellaneous receipts, exclusive of deposits to any 

6 relevant trust fund, special account, or perma7 nent operating funds, received by the Federal 

8 Government from activities by the Bureau of 

9 Land Management or the Forest Service on the 

10 applicable Federal land; and 

11 ‘‘(B) to the extent of any shortfall, out of 

12 any amounts in the Treasury of the United 

13 States not otherwise appropriated. 

14 ‘‘(c) DISTRIBUTION AND EXPENDITURE OF PAY15 MENTS.— 

16 ‘‘(1) DISTRIBUTION METHOD.—A State that re17 ceives a payment under subsection (a) for Federal 

18 land described in section 3(7)(A) shall distribute the 

19 appropriate payment amount among the appropriate 

20 counties in the State in accordance with— 

21 ‘‘(A) the Act of May 23, 1908 (16 U.S.C. 

22 500); and 

23 ‘‘(B) section 13 of the Act of March 1, 1911 

24 (36 Stat. 963; 16 U.S.C. 500). 


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1 ‘‘(2) EXPENDITURE PURPOSES.—Subject to sub2 section (d), payments received by a State under sub3 section (a) and distributed to counties in accordance 

4 with paragraph (1) shall be expended as required by 

5 the laws referred to in paragraph (1). 

6 ‘‘(d) EXPENDITURE RULES FOR ELIGIBLE COUN7 TIES.— 

8 ‘‘(1) ALLOCATIONS.— 

9 ‘‘(A) USE OF PORTION IN SAME MANNER AS

10 25-PERCENTPAYMENTOR 50-PERCENTPAYMENT, 

11 AS APPLICABLE.—Except as provided in para12 graph (3)(B), if an eligible county elects to re13 ceive its share of the State payment or the coun14 ty payment, not less than 80 percent, but not 

15 more than 85 percent, of the funds shall be ex16 pended in the same manner in which the 25-per17 cent payments or 50-percent payment, as appli18 cable, are required to be expended. 

19 ‘‘(B) ELECTION AS TO USE OF BALANCE.— 

20 Except as provided in subparagraph (C), an eli21 gible county shall elect to do 1 or more of the fol22 lowing with the balance of any funds not ex23 pended pursuant to subparagraph (A): 

24 ‘‘(i) Reserve any portion of the balance 

25 for projects in accordance with title II. 


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1 ‘‘(ii) Reserve not more than 7 percent 

2 of the total share for the eligible county of 

3 the State payment or the county payment 

4 for projects in accordance with title III. 

5 ‘‘(iii) Return the portion of the balance 

6 not reserved under clauses (i) and (ii) to the 

7 Treasury of the United States. 

8 ‘‘(C) COUNTIES WITH MODEST DISTRIBU9 TIONS.—In the case of each eligible county to 

10 which more than $100,000, but less than 

11 $350,000, is distributed for any fiscal year pur12 suant to either or both of paragraphs (1)(B) and 

13 (2)(B) of subsection (a), the eligible county, with 

14 respect to the balance of any funds not expended 

15 pursuant to subparagraph (A) for that fiscal 

16 year, shall— 

17 ‘‘(i) reserve any portion of the balance 

18 for— 

19 ‘‘(I) carrying out projects under 

20 title II; 

21 ‘‘(II) carrying out projects under 

22 title III; or 

23 ‘‘(III) a combination of the pur24 poses described in subclauses (I) and 

25 (II); or 


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1 ‘‘(ii) return the portion of the balance 

2 not reserved under clause (i) to the Treas3 ury of the United States. 

4 ‘‘(2) DISTRIBUTION OF FUNDS.— 

5 ‘‘(A) IN GENERAL.—Funds reserved by an 

6 eligible county under subparagraph (B)(i) or 

7 (C)(i)(I) of paragraph (1) shall be deposited in 

8 a special account in the Treasury of the United 

9 States. 

10 ‘‘(B) AVAILABILITY.—Amounts deposited 

11 under subparagraph (A) shall— 

12 ‘‘(i) be available for expenditure by the 

13 Secretary concerned, without further appro14 priation; and 

15 ‘‘(ii) remain available until expended 

16 in accordance with title II. 

17 ‘‘(3) ELECTION.— 

18 ‘‘(A) NOTIFICATION.— 

19 ‘‘(i) IN GENERAL.—An eligible county 

20 shall notify the Secretary concerned of an 

21 election by the eligible county under this 

22 subsection not later than September 30 of 

23 each fiscal year. 

24 ‘‘(ii) FAILURE TO ELECT.—Except as 

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1 ble county fails to make an election by the 

2 date specified in clause (i), the eligible 

3 county shall— 

4 ‘‘(I) be considered to have elected 

5 to expend 85 percent of the funds in 

6 accordance with paragraph (1)(A); and 

7 ‘‘(II) return the balance to the 

8 Treasury of the United States. 

9 ‘‘(B) COUNTIES WITH MINOR DISTRIBU10 TIONS.—In the case of each eligible county to 

11 which less than $100,000 is distributed for any 

12 fiscal year pursuant to either or both of para13 graphs (1)(B) and (2)(B) of subsection (a), the 

14 eligible county may elect to expend all the funds 

15 in the same manner in which the 25-percent 

16 payments or 50-percent payments, as applicable, 

17 are required to be expended. 

18 ‘‘(e) TIME FOR PAYMENT.—The payments required 

19 under this section for a fiscal year shall be made as soon 

20 as practicable after the end of that fiscal year. 

21 ‘‘SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALI22 FORNIA, OREGON, AND WASHINGTON. 

23 ‘‘(a) DEFINITIONS.—In this section: 

24 ‘‘(1) ADJUSTED AMOUNT.—The term ‘adjusted 

25 amount’ means, with respect to a covered State— 


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1 ‘‘(A) for fiscal year 2007— 

2 ‘‘(i) the sum of the amounts paid in 

3 fiscal year 2006 under section 102(a)(2) (as 

4 in effect on September 29, 2006) for the eli5 gible counties in the covered State that have 

6 elected under section 102(b) to receive a 

7 share of the State payment for fiscal year 

8 2007; and 

9 ‘‘(ii) the sum of the amounts paid in 

10 fiscal year 2006 under section 103(a)(2) (as 

11 in effect on September 29, 2006) for the eli12 gible counties in the State of Oregon that 

13 have elected under section 102(b) to receive 

14 the county payment for fiscal year 2007; 

15 ‘‘(B) for fiscal year 2008, 90 percent of— 

16 ‘‘(i) the sum of the amounts paid in 

17 fiscal year 2006 under section 102(a)(2) (as 

18 in effect on September 29, 2006) for the eli19 gible counties in the covered State that have 

20 elected under section 102(b) to receive a 

21 share of the State payment for fiscal year 

22 2008; and 

23 ‘‘(ii) the sum of the amounts paid in 

24 fiscal year 2006 under section 103(a)(2) (as 

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1 gible counties in the State of Oregon that 

2 have elected under section 102(b) to receive 

3 the county payment for fiscal year 2008; 

4 ‘‘(C) for fiscal year 2009, 81 percent of— 

5 ‘‘(i) the sum of the amounts paid in 

6 fiscal year 2006 under section 102(a)(2) (as 

7 in effect on September 29, 2006) for the eli8 gible counties in the covered State that have 

9 elected under section 102(b) to receive a 

10 share of the State payment for fiscal year 

11 2009; and 

12 ‘‘(ii) the sum of the amounts paid in 

13 fiscal year 2006 under section 103(a)(2) (as 

14 in effect on September 29, 2006) for the eli15 gible counties in the State of Oregon that 

16 have elected under section 102(b) to receive 

17 the county payment for fiscal year 2009; 

18 and 

19 ‘‘(D) for fiscal year 2010, 73 percent of— 

20 ‘‘(i) the sum of the amounts paid in 

21 fiscal year 2006 under section 102(a)(2) (as 

22 in effect on September 29, 2006) for the eli23 gible counties in the covered State that have 

24 elected under section 102(b) to receive a 


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1 share of the State payment for fiscal year 

2 2010; and 

3 ‘‘(ii) the sum of the amounts paid in 

4 fiscal year 2006 under section 103(a)(2) (as 

5 in effect on September 29, 2006) for the eli6 gible counties in the State of Oregon that 

7 have elected under section 102(b) to receive 

8 the county payment for fiscal year 2010. 

9 ‘‘(2) COVERED STATE.—The term ‘covered State’ 

10 means each of the States of California, Oregon, and 

11 Washington. 

12 ‘‘(b) TRANSITION PAYMENTS.—For each of fiscal years 

13 2007 through 2010, in lieu of the payment amounts that 

14 otherwise would have been made under paragraphs (1)(B) 

15 and (2)(B) of section 102(a), the Secretary of the Treasury 

16 shall pay the adjusted amount to each covered State and 

17 the eligible counties within the covered State, as applicable, 

18 from funds in the Treasury of the United States not other19 wise appropriated. 

20 ‘‘(c) DISTRIBUTION OF ADJUSTED AMOUNTIN OREGON

21 AND WASHINGTON.—It is the intent of Congress that the 

22 method of distributing the payments under subsection (b) 

23 among the counties in the States of Oregon and Washington 

24 for each of fiscal years 2007 through 2010 be in the same 


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1 proportion that the payments were distributed to the eligi2 ble counties in fiscal year 2006. 

3 ‘‘(d) DISTRIBUTION OF PAYMENTS IN CALIFORNIA.— 

4 The following payments shall be distributed among the eli5 gible counties in the State of California in the same propor6 tion that payments under section 102(a)(2) (as in effect on 

7 September 29, 2006) were distributed to the eligible counties 

8 in fiscal year 2006: 

9 ‘‘(1) Payments to the State of California under 

10 subsection (b). 

11 ‘‘(2) The shares of the eligible counties of the 

12 State payment for California under section 102 for 

13 fiscal year 2011. 

14 ‘‘(e) TREATMENT OF PAYMENTS.—For purposes of this 

15 Act, any payment made under subsection (b) shall be con16 sidered to be a payment made under section 102(a). 

17 ‘‘TITLE II—SPECIAL PROJECTS 

18 ON FEDERAL LAND 

19 ‘‘SEC. 201. DEFINITIONS. 

20 ‘‘In this title: 

21 ‘‘(1) PARTICIPATING COUNTY.—The term ‘par22 ticipating county’ means an eligible county that elects 

23 under section 102(d) to expend a portion of the Fed24 eral funds received under section 102 in accordance 

25 with this title. 


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1 ‘‘(2) PROJECTFUNDS.—The term ‘project funds’ 

2 means all funds an eligible county elects under section 

3 102(d) to reserve for expenditure in accordance with 

4 this title. 

5 ‘‘(3) RESOURCE ADVISORY COMMITTEE.—The 

6 term ‘resource advisory committee’ means— 

7 ‘‘(A) an advisory committee established by 

8 the Secretary concerned under section 205; or 

9 ‘‘(B) an advisory committee determined by 

10 the Secretary concerned to meet the requirements 

11 of section 205. 

12 ‘‘(4) RESOURCE MANAGEMENTPLAN.—The term 

13 ‘resource management plan’ means— 

14 ‘‘(A) a land use plan prepared by the Bu15 reau of Land Management for units of the Fed16 eral land described in section 3(7)(B) pursuant 

17 to section 202 of the Federal Land Policy and 

18 Management Act of 1976 (43 U.S.C. 1712); or 

19 ‘‘(B) a land and resource management plan 

20 prepared by the Forest Service for units of the 

21 National Forest System pursuant to section 6 of 

22 the Forest and Rangeland Renewable Resources 

23 Planning Act of 1974l (16 U.S.C. 1604). 


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1 ‘‘SEC. 202. GENERAL LIMITATION ON USE OF PROJECT 

2 FUNDS. 

3 ‘‘(a) LIMITATION.—Project funds shall be expended 

4 solely on projects that meet the requirements of this title. 

5 ‘‘(b) AUTHORIZED USES.—Project funds may be used 

6 by the Secretary concerned for the purpose of entering into 

7 and implementing cooperative agreements with willing 

8 Federal agencies, State and local governments, private and 

9 nonprofit entities, and landowners for protection, restora10 tion, and enhancement of fish and wildlife habitat, and 

11 other resource objectives consistent with the purposes of this 

12 Act on Federal land and on non-Federal land where projects 

13 would benefit the resources on Federal land. 

14 ‘‘SEC. 203. SUBMISSION OF PROJECT PROPOSALS. 

15 ‘‘(a) SUBMISSION OF PROJECT PROPOSALS TO SEC16 RETARY CONCERNED.— 

17 ‘‘(1) PROJECTS FUNDED USING PROJECT

18 FUNDS.—Not later than September 30 for fiscal year 

19 2007, and each September 30 thereafter for each suc20 ceeding fiscal year through fiscal year 2011, each re21 source advisory committee shall submit to the Sec22 retary concerned a description of any projects that the 

23 resource advisory committee proposes the Secretary 

24 undertake using any project funds reserved by eligible 

25 counties in the area in which the resource advisory 

26 committee has geographic jurisdiction. 


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1 ‘‘(2) PROJECTS FUNDED USING OTHER FUNDS.— 

2 A resource advisory committee may submit to the Sec3 retary concerned a description of any projects that the 

4 committee proposes the Secretary undertake using 

5 funds from State or local governments, or from the 

6 private sector, other than project funds and funds ap7 propriated and otherwise available to do similar 

8 work. 

9 ‘‘(3) JOINTPROJECTS.—Participating counties 

10 or other persons may propose to pool project funds or 

11 other funds, described in paragraph (2), and jointly 

12 propose a project or group of projects to a resource 

13 advisory committee established under section 205. 

14 ‘‘(b) REQUIRED DESCRIPTION OF PROJECTS.—In sub15 mitting proposed projects to the Secretary concerned under 

16 subsection (a), a resource advisory committee shall include 

17 in the description of each proposed project the following in18 formation: 

19 ‘‘(1) The purpose of the project and a description 

20 of how the project will meet the purposes of this title. 

21 ‘‘(2) The anticipated duration of the project. 

22 ‘‘(3) The anticipated cost of the project. 

23 ‘‘(4) The proposed source of funding for the 

24 project, whether project funds or other funds. 


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1 ‘‘(5)(A) Expected outcomes, including how the 

2 project will meet or exceed desired ecological condi3 tions, maintenance objectives, or stewardship objec4 tives. 

5 ‘‘(B) An estimate of the amount of any timber, 

6 forage, and other commodities and other economic ac7 tivity, including jobs generated, if any, anticipated as 

8 part of the project. 

9 ‘‘(6) A detailed monitoring plan, including fund10 ing needs and sources, that— 

11 ‘‘(A) tracks and identifies the positive or 

12 negative impacts of the project, implementation, 

13 and provides for validation monitoring; and 

14 ‘‘(B) includes an assessment of the fol15 lowing: 

16 ‘‘(i) Whether or not the project met or 

17 exceeded desired ecological conditions; cre18 ated local employment or training opportu19 nities, including summer youth jobs pro20 grams such as the Youth Conservation 

21 Corps where appropriate. 

22 ‘‘(ii) Whether the project improved the 

23 use of, or added value to, any products re24 moved from land consistent with the pur25 poses of this title. 


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1 ‘‘(7) An assessment that the project is to be in 

2 the public interest. 

3 ‘‘(c) AUTHORIZED PROJECTS.—Projects proposed 

4 under subsection (a) shall be consistent with section 2. 

5 ‘‘SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY 

6 SECRETARY CONCERNED. 

7 ‘‘(a) CONDITIONS FOR APPROVAL OF PROPOSED

8 PROJECT.—The Secretary concerned may make a decision 

9 to approve a project submitted by a resource advisory com10 mittee under section 203 only if the proposed project satis11 fies each of the following conditions: 

12 ‘‘(1) The project complies with all applicable 

13 Federal laws (including regulations). 

14 ‘‘(2) The project is consistent with the applicable 

15 resource management plan and with any watershed 

16 or subsequent plan developed pursuant to the resource 

17 management plan and approved by the Secretary 

18 concerned. 

19 ‘‘(3) The project has been approved by the re20 source advisory committee in accordance with section 

21 205, including the procedures issued under subsection 

22 (e) of that section. 

23 ‘‘(4) A project description has been submitted by 

24 the resource advisory committee to the Secretary con25 cerned in accordance with section 203. 


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1 ‘‘(5) The project will improve the maintenance of 

2 existing infrastructure, implement stewardship objec3 tives that enhance forest ecosystems, and restore and 

4 improve land health and water quality. 

5 ‘‘(b) ENVIRONMENTAL REVIEWS.— 

6 ‘‘(1) REQUESTFOR PAYMENTBY COUNTY.—The 

7 Secretary concerned may request the resource advi8 sory committee submitting a proposed project to agree 

9 to the use of project funds to pay for any environ10 mental review, consultation, or compliance with ap11 plicable environmental laws required in connection 

12 with the project. 

13 ‘‘(2) CONDUCTOF ENVIRONMENTAL REVIEW.—If 

14 a payment is requested under paragraph (1) and the 

15 resource advisory committee agrees to the expenditure 

16 of funds for this purpose, the Secretary concerned 

17 shall conduct environmental review, consultation, or 

18 other compliance responsibilities in accordance with 

19 Federal laws (including regulations). 

20 ‘‘(3) EFFECTOF REFUSAL TO PAY.— 

21 ‘‘(A) IN GENERAL.—If a resource advisory 

22 committee does not agree to the expenditure of 

23 funds under paragraph (1), the project shall be 

24 deemed withdrawn from further consideration by 

25 the Secretary concerned pursuant to this title. 


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1 ‘‘(B) EFFECTOF WITHDRAWAL.—A with2 drawal under subparagraph (A) shall be deemed 

3 to be a rejection of the project for purposes of sec4 tion 207(c). 

5 ‘‘(c) DECISIONS OF SECRETARY CONCERNED.— 

6 ‘‘(1) REJECTION OF PROJECTS.— 

7 ‘‘(A) IN GENERAL.—A decision by the Sec8 retary concerned to reject a proposed project 

9 shall be at the sole discretion of the Secretary 

10 concerned. 

11 ‘‘(B) NO ADMINISTRATIVE APPEAL OR JUDI12 CIAL REVIEW.—Notwithstanding any other pro13 vision of law, a decision by the Secretary con14 cerned to reject a proposed project shall not be 

15 subject to administrative appeal or judicial re16 view. 

17 ‘‘(C) NOTICE OF REJECTION.—Not later 

18 than 30 days after the date on which the Sec19 retary concerned makes the rejection decision, the 

20 Secretary concerned shall notify in writing the 

21 resource advisory committee that submitted the 

22 proposed project of the rejection and the reasons 

23 for rejection. 

24 ‘‘(2) NOTICE OF PROJECT APPROVAL.—The Sec25 retary concerned shall publish in the Federal Register 


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1 notice of each project approved under subsection (a) 

2 if the notice would be required had the project origi3 nated with the Secretary. 

4 ‘‘(d) SOURCE AND CONDUCTOF PROJECT.—Once the 

5 Secretary concerned accepts a project for review under sec6 tion 203, the acceptance shall be deemed a Federal action 

7 for all purposes. 

8 ‘‘(e) IMPLEMENTATION OF APPROVED PROJECTS.— 

9 ‘‘(1) COOPERATION.—Notwithstanding chapter 

10 63 of title 31, United States Code, using project funds 

11 the Secretary concerned may enter into contracts, 

12 grants, and cooperative agreements with States and 

13 local governments, private and nonprofit entities, and 

14 landowners and other persons to assist the Secretary 

15 in carrying out an approved project. 

16 ‘‘(2) BEST VALUE CONTRACTING.— 

17 ‘‘(A) IN GENERAL.—For any project involv18 ing a contract authorized by paragraph (1) the 

19 Secretary concerned may elect a source for per20 formance of the contract on a best value basis. 

21 ‘‘(B) FACTORS.—The Secretary concerned 

22 shall determine best value based on such factors 

23 as— 

24 ‘‘(i) the technical demands and com25 plexity of the work to be done; 


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1 ‘‘(ii)(I) the ecological objectives of the 

2 project; and 

3 ‘‘(II) the sensitivity of the resources 

4 being treated; 

5 ‘‘(iii) the past experience by the con6 tractor with the type of work being done, 

7 using the type of equipment proposed for 

8 the project, and meeting or exceeding de9 sired ecological conditions; and 

10 ‘‘(iv) the commitment of the contractor 

11 to hiring highly qualified workers and local 

12 residents. 

13 ‘‘(3) MERCHANTABLE TIMBER CONTRACTING

14 PILOTPROGRAM.— 

15 ‘‘(A) ESTABLISHMENT.—The Secretary con16 cerned shall establish a pilot program to imple17 ment a certain percentage of approved projects 

18 involving the sale of merchantable timber using 

19 separate contracts for— 

20 ‘‘(i) the harvesting or collection of mer21 chantable timber; and 

22 ‘‘(ii) the sale of the timber. 

23 ‘‘(B) ANNUAL PERCENTAGES.—Under the 

24 pilot program, the Secretary concerned shall en25 sure that, on a nationwide basis, not less than 


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1 the following percentage of all approved projects 

2 involving the sale of merchantable timber are 

3 implemented using separate contracts: 

4 ‘‘(i) For fiscal year 2007, 25 percent. 

5 ‘‘(ii) For fiscal year 2008, 35 percent. 

6 ‘‘(iii) For fiscal year 2009, 45 percent. 

7 ‘‘(iv) For each of fiscal years 2010 and 

8 2011, 50 percent. 

9 ‘‘(C) INCLUSION IN PILOTPROGRAM.—The 

10 decision whether to use separate contracts to im11 plement a project involving the sale of merchant12 able timber shall be made by the Secretary con13 cerned after the approval of the project under 

14 this title. 

15 ‘‘(D) ASSISTANCE.— 

16 ‘‘(i) IN GENERAL.—The Secretary con17 cerned may use funds from any appro18 priated account available to the Secretary 

19 for the Federal land to assist in the admin20 istration of projects conducted under the 

21 pilot program. 

22 ‘‘(ii) MAXIMUM AMOUNTOF ASSIST23 ANCE.—The total amount obligated under 

24 this subparagraph may not exceed 


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1 $1,000,000 for any fiscal year during which 

2 the pilot program is in effect. 

3 ‘‘(E) REVIEW AND REPORT.— 

4 ‘‘(i) INITIAL REPORT.—Not later than 

5 September 30, 2009, the Comptroller Gen6 eral shall submit to the Committees on Ag7 riculture, Nutrition, and Forestry and En8 ergy and Natural Resources of the Senate 

9 and the Committees on Agriculture and 

10 Natural Resources of the House of Rep11 resentatives a report assessing the pilot pro12 gram. 

13 ‘‘(ii) ANNUAL REPORT.—The Secretary 

14 concerned shall submit to the Committees on 

15 Agriculture, Nutrition, and Forestry and 

16 Energy and Natural Resources of the Senate 

17 and the Committees on Agriculture and 

18 Natural Resources of the House of Rep19 resentatives an annual report describing the 

20 results of the pilot program. 

21 ‘‘(f) REQUIREMENTS FOR PROJECT FUNDS.—The Sec22 retary shall ensure that at least 50 percent of all project 

23 funds be used for projects that are primarily dedicated— 

24 ‘‘(1) to road maintenance, decommissioning, or 

25 obliteration; or 


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1 ‘‘(2) to restoration of streams and watersheds. 

2 ‘‘SEC. 205. RESOURCE ADVISORY COMMITTEES. 

3 ‘‘(a) ESTABLISHMENT AND PURPOSE OF RESOURCE

4 ADVISORY COMMITTEES.— 

5 ‘‘(1) ESTABLISHMENT.—The Secretary concerned 

6 shall establish and maintain resource advisory com7 mittees to perform the duties in subsection (b), except 

8 as provided in paragraph (4). 

9 ‘‘(2) PURPOSE.—The purpose of a resource advi10 sory committee shall be— 

11 ‘‘(A) to improve collaborative relationships; 

12 and 

13 ‘‘(B) to provide advice and recommenda14 tions to the land management agencies consistent 

15 with the purposes of this title. 

16 ‘‘(3) ACCESS TO RESOURCE ADVISORY COMMIT17 TEES.—To ensure that each unit of Federal land has 

18 access to a resource advisory committee, and that 

19 there is sufficient interest in participation on a com20 mittee to ensure that membership can be balanced in 

21 terms of the points of view represented and the func22 tions to be performed, the Secretary concerned may, 

23 establish resource advisory committees for part of, or 

24 1 or more, units of Federal land. 

25 ‘‘(4) EXISTING ADVISORY COMMITTEES.— 


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1 ‘‘(A) IN GENERAL.—An advisory committee 

2 that meets the requirements of this section, an 

3 advisory committee established before the date of 

4 enactment of this Act, or an advisory committee 

5 determined by the Secretary concerned to meet 

6 the requirements of this section before the date of 

7 enactment of this Act may be deemed by the Sec8 retary concerned to be a resource advisory com9 mittee for the purposes of this title. 

10 ‘‘(B) CHARTER.—A charter for a committee 

11 described in subparagraph (A) that was filed on 

12 or before September 29, 2006, shall be considered 

13 to be filed for purposes of this Act. 

14 ‘‘(C) BUREAU OF LAND MANAGEMENTADVI15 SORY COMMITTEES.—The Secretary of the Inte16 rior may deem a resource advisory committee 

17 meeting the requirements of subpart 1784 of part 

18 1780 of title 43, Code of Federal Regulations, as 

19 a resource advisory committee for the purposes of 

20 this title. 

21 ‘‘(b) DUTIES.—A resource advisory committee shall— 

22 ‘‘(1) review projects proposed under this title by 

23 participating counties and other persons; 

24 ‘‘(2) propose projects and funding to the Sec25 retary concerned under section 203; 


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1 ‘‘(3) provide early and continuous coordination 

2 with appropriate land management agency officials 

3 in recommending projects consistent with purposes of 

4 this Act under this title; 

5 ‘‘(4) provide frequent opportunities for citizens, 

6 organizations, tribes, land management agencies, and 

7 other interested parties to participate openly and 

8 meaningfully, beginning at the early stages of the 

9 project development process under this title; 

10 ‘‘(5)(A) monitor projects that have been approved 

11 under section 204; and 

12 ‘‘(B) advise the designated Federal official on the 

13 progress of the monitoring efforts under subparagraph 

14 (A); and 

15 ‘‘(6) make recommendations to the Secretary 

16 concerned for any appropriate changes or adjustments 

17 to the projects being monitored by the resource advi18 sory committee. 

19 ‘‘(c) APPOINTMENT BY THE SECRETARY.— 

20 ‘‘(1) APPOINTMENT AND TERM.— 

21 ‘‘(A) IN GENERAL.—The Secretary con22 cerned, shall appoint the members of resource ad23 visory committees for a term of 4 years begin24 ning on the date of appointment. 


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1 ‘‘(B) REAPPOINTMENT.—The Secretary con2 cerned may reappoint members to subsequent 4- 

3 year terms. 

4 ‘‘(2) BASIC REQUIREMENTS.—The Secretary con5 cerned shall ensure that each resource advisory com6 mittee established meets the requirements of subsection 

7 (d). 

8 ‘‘(3) INITIAL APPOINTMENT.—Not later than 180 

9 days after the date of the enactment of this Act, the 

10 Secretary concerned shall make initial appointments 

11 to the resource advisory committees. 

12 ‘‘(4) VACANCIES.—The Secretary concerned shall 

13 make appointments to fill vacancies on any resource 

14 advisory committee as soon as practicable after the 

15 vacancy has occurred. 

16 ‘‘(5) COMPENSATION.—Members of the resource 

17 advisory committees shall not receive any compensa18 tion. 

19 ‘‘(d) COMPOSITION OF ADVISORY COMMITTEE.— 

20 ‘‘(1) NUMBER.—Each resource advisory com21 mittee shall be comprised of 15 members. 

22 ‘‘(2) COMMUNITY INTERESTS REPRESENTED.— 

23 Committee members shall be representative of the in24 terests of the following 3 categories: 

25 ‘‘(A) 5 persons that— 


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1 ‘‘(i) represent organized labor or non2 timber forest product harvester groups; 

3 ‘‘(ii) represent developed outdoor recre4 ation, off highway vehicle users, or commer5 cial recreation activities; 

6 ‘‘(iii) represent— 

7 ‘‘(I) energy and mineral develop8 ment interests; or 

9 ‘‘(II) commercial or recreational 

10 fishing interests; 

11 ‘‘(iv) represent the commercial timber 

12 industry; or 

13 ‘‘(v) hold Federal grazing or other land 

14 use permits, or represent nonindustrial pri15 vate forest land owners, within the area for 

16 which the committee is organized. 

17 ‘‘(B) 5 persons that represent— 

18 ‘‘(i) nationally recognized environ19 mental organizations; 

20 ‘‘(ii) regionally or locally recognized 

21 environmental organizations; 

22 ‘‘(iii) dispersed recreational activities; 

23 ‘‘(iv) archaeological and historical in24 terests; or 


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1 ‘‘(v) nationally or regionally recog2 nized wild horse and burro interest groups, 

3 wildlife or hunting organizations, or water4 shed associations. 

5 ‘‘(C) 5 persons that— 

6 ‘‘(i) hold State elected office (or a des7 ignee); 

8 ‘‘(ii) hold county or local elected office; 

9 ‘‘(iii) represent American Indian tribes 

10 within or adjacent to the area for which the 

11 committee is organized; 

12 ‘‘(iv) are school officials or teachers; or 

13 ‘‘(v) represent the affected public at 

14 large. 

15 ‘‘(3) BALANCED REPRESENTATION.—In appoint16 ing committee members from the 3 categories in para17 graph (2), the Secretary concerned shall provide for 

18 balanced and broad representation from within each 

19 category. 

20 ‘‘(4) GEOGRAPHIC DISTRIBUTION.—The members 

21 of a resource advisory committee shall reside within 

22 the State in which the committee has jurisdiction 

23 and, to extent practicable, the Secretary concerned 

24 shall ensure local representation in each category in 

25 paragraph (2). 


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1 ‘‘(5) CHAIRPERSON.—A majority on each re2 source advisory committee shall select the chairperson 

3 of the committee. 

4 ‘‘(e) APPROVAL PROCEDURES.— 

5 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

6 each resource advisory committee shall establish pro7 cedures for proposing projects to the Secretary con8 cerned under this title. 

9 ‘‘(2) QUORUM.—A quorum must be present to 

10 constitute an official meeting of the committee. 

11 ‘‘(3) APPROVAL BY MAJORITY OF MEMBERS.—A 

12 project may be proposed by a resource advisory com13 mittee to the Secretary concerned under section 

14 203(a), if the project has been approved by a majority 

15 of members of the committee from each of the 3 cat16 egories in subsection (d)(2). 

17 ‘‘(f) OTHER COMMITTEE AUTHORITIES AND REQUIRE18 MENTS.— 

19 ‘‘(1) STAFF ASSISTANCE.—A resource advisory 

20 committee may submit to the Secretary concerned a 

21 request for periodic staff assistance from Federal em22 ployees under the jurisdiction of the Secretary. 

23 ‘‘(2) MEETINGS.—All meetings of a resource ad24 visory committee shall be announced at least 1 week 


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1 in advance in a local newspaper of record and shall 

2 be open to the public. 

3 ‘‘(3) RECORDS.—A resource advisory committee 

4 shall maintain records of the meetings of the com5 mittee and make the records available for public in6 spection. 

7 ‘‘SEC. 206. USE OF PROJECT FUNDS. 

8 ‘‘(a) AGREEMENT REGARDING SCHEDULE AND COST

9 OF PROJECT.— 

10 ‘‘(1) AGREEMENT BETWEEN PARTIES.—The Sec11 retary concerned may carry out a project submitted 

12 by a resource advisory committee under section 

13 203(a) using project funds or other funds described in 

14 section 203(a)(2), if, as soon as practicable after the 

15 issuance of a decision document for the project and 

16 the exhaustion of all administrative appeals and judi17 cial review of the project decision, the Secretary con18 cerned and the resource advisory committee enter into 

19 an agreement addressing, at a minimum, the fol20 lowing: 

21 ‘‘(A) The schedule for completing the 

22 project. 

23 ‘‘(B) The total cost of the project, including 

24 the level of agency overhead to be assessed 

25 against the project. 


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1 ‘‘(C) For a multiyear project, the estimated 

2 cost of the project for each of the fiscal years in 

3 which it will be carried out. 

4 ‘‘(D) The remedies for failure of the Sec5 retary concerned to comply with the terms of the 

6 agreement consistent with current Federal law. 

7 ‘‘(2) LIMITED USE OF FEDERAL FUNDS.—The 

8 Secretary concerned may decide, at the sole discretion 

9 of the Secretary concerned, to cover the costs of a por10 tion of an approved project using Federal funds ap11 propriated or otherwise available to the Secretary for 

12 the same purposes as the project. 

13 ‘‘(b) TRANSFER OF PROJECT FUNDS.— 

14 ‘‘(1) INITIAL TRANSFER REQUIRED.—As soon as 

15 practicable after the agreement is reached under sub16 section (a) with regard to a project to be funded in 

17 whole or in part using project funds, or other funds 

18 described in section 203(a)(2), the Secretary con19 cerned shall transfer to the applicable unit of Na20 tional Forest System land or Bureau of Land Man21 agement District an amount of project funds equal 

22 to— 

23 ‘‘(A) in the case of a project to be completed 

24 in a single fiscal year, the total amount specified 


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1 in the agreement to be paid using project funds, 

2 or other funds described in section 203(a)(2); or 

3 ‘‘(B) in the case of a multiyear project, the 

4 amount specified in the agreement to be paid 

5 using project funds, or other funds described in 

6 section 203(a)(2) for the first fiscal year. 

7 ‘‘(2) CONDITION ON PROJECT COMMENCEMENT.— 

8 The unit of National Forest System land or Bureau 

9 of Land Management District concerned, shall not 

10 commence a project until the project funds, or other 

11 funds described in section 203(a)(2) required to be 

12 transferred under paragraph (1) for the project, have 

13 been made available by the Secretary concerned. 

14 ‘‘(3) SUBSEQUENT TRANSFERS FOR MULTIYEAR

15 PROJECTS.— 

16 ‘‘(A) IN GENERAL.—For the second and sub17 sequent fiscal years of a multiyear project to be 

18 funded in whole or in part using project funds, 

19 the unit of National Forest System land or Bu20 reau of Land Management District concerned 

21 shall use the amount of project funds required to 

22 continue the project in that fiscal year according 

23 to the agreement entered into under subsection 

24 (a). 


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1 ‘‘(B) SUSPENSION OF WORK.—The Sec2 retary concerned shall suspend work on the 

3 project if the project funds required by the agree4 ment in the second and subsequent fiscal years 

5 are not available. 

6 ‘‘SEC. 207. AVAILABILITY OF PROJECT FUNDS. 

7 ‘‘(a) SUBMISSION OF PROPOSED PROJECTS TO OBLI8 GATE FUNDS.—By September 30 of each fiscal year through 

9 fiscal year 2011, a resource advisory committee shall submit 

10 to the Secretary concerned pursuant to section 203(a)(1) a 

11 sufficient number of project proposals that, if approved, 

12 would result in the obligation of at least the full amount 

13 of the project funds reserved by the participating county 

14 in the preceding fiscal year. 

15 ‘‘(b) USE OR TRANSFER OF UNOBLIGATED FUNDS.— 

16 Subject to section 208, if a resource advisory committee fails 

17 to comply with subsection (a) for a fiscal year, any project 

18 funds reserved by the participating county in the preceding 

19 fiscal year and remaining unobligated shall be available for 

20 use as part of the project submissions in the next fiscal year. 

21 ‘‘(c) EFFECTOF REJECTION OF PROJECTS.—Subject 

22 to section 208, any project funds reserved by a partici23 pating county in the preceding fiscal year that are unobli24 gated at the end of a fiscal year because the Secretary con25 cerned has rejected one or more proposed projects shall be 


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1 available for use as part of the project submissions in the 

2 next fiscal year. 

3 ‘‘(d) EFFECTOF COURT ORDERS.— 

4 ‘‘(1) IN GENERAL.—If an approved project under 

5 this Act is enjoined or prohibited by a Federal court, 

6 the Secretary concerned shall return the unobligated 

7 project funds related to the project to the partici8 pating county or counties that reserved the funds. 

9 ‘‘(2) EXPENDITURE OF FUNDS.—The returned 

10 funds shall be available for the county to expend in 

11 the same manner as the funds reserved by the county 

12 under subparagraph (B) or (C)(i) of section 

13 102(d)(1). 

14 ‘‘SEC. 208. TERMINATION OF AUTHORITY. 

15 ‘‘(a) IN GENERAL.—The authority to initiate projects 

16 under this title shall terminate on September 30, 2011. 

17 ‘‘(b) DEPOSITS IN TREASURY.—Any project funds not 

18 obligated by September 30, 2012, shall be deposited in the 

19 Treasury of the United States. 

20 ‘‘TITLE III—COUNTY FUNDS 

21 ‘‘SEC. 301. DEFINITIONS. 

22 ‘‘In this title: 

23 ‘‘(1) COUNTY FUNDS.—The term ‘county funds’ 

24 means all funds an eligible county elects under section 


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1 102(d) to reserve for expenditure in accordance with 

2 this title. 

3 ‘‘(2) PARTICIPATING COUNTY.—The term ‘par4 ticipating county’ means an eligible county that elects 

5 under section 102(d) to expend a portion of the Fed6 eral funds received under section 102 in accordance 

7 with this title. 

8 ‘‘SEC. 302. USE. 

9 ‘‘(a) AUTHORIZED USES.—A participating county, 

10 including any applicable agencies of the participating 

11 county, shall use county funds, in accordance with this title, 

12 only— 

13 ‘‘(1) to carry out activities under the Firewise 

14 Communities program to provide to homeowners in 

15 fire-sensitive ecosystems education on, and assistance 

16 with implementing, techniques in home siting, home 

17 construction, and home landscaping that can increase 

18 the protection of people and property from wildfires; 

19 ‘‘(2) to reimburse the participating county for 

20 search and rescue and other emergency services, in21 cluding firefighting, that are— 

22 ‘‘(A) performed on Federal land after the 

23 date on which the use was approved under sub24 section (b); 


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1 ‘‘(B) paid for by the participating county; 

2 and 

3 ‘‘(3) to develop community wildfire protection 

4 plans in coordination with the appropriate Secretary 

5 concerned. 

6 ‘‘(b) PROPOSALS.—A participating county shall use 

7 county funds for a use described in subsection (a) only after 

8 a 45-day public comment period, at the beginning of which 

9 the participating county shall— 

10 ‘‘(1) publish in any publications of local record 

11 a proposal that describes the proposed use of the coun12 ty funds; and 

13 ‘‘(2) submit the proposal to any resource advi14 sory committee established under section 205 for the 

15 participating county. 

16 ‘‘SEC. 303. CERTIFICATION. 

17 ‘‘(a) IN GENERAL.—Not later than February 1 of the 

18 year after the year in which any county funds were ex19 pended by a participating county, the appropriate official 

20 of the participating county shall submit to the Secretary 

21 concerned a certification that the county funds expended in 

22 the applicable year have been used for the uses authorized 

23 under section 302(a), including a description of the 

24 amounts expended and the uses for which the amounts were 

25 expended. 


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1 ‘‘(b) REVIEW.—The Secretary concerned shall review 

2 the certifications submitted under subsection (a) as the Sec3 retary concerned determines to be appropriate. 

4 ‘‘SEC. 304. TERMINATION OF AUTHORITY. 

5 ‘‘(a) IN GENERAL.—The authority to initiate projects 

6 under this title terminates on September 30, 2011. 

7 ‘‘(b) AVAILABILITY.—Any county funds not obligated 

8 by September 30, 2012, shall be deposited in the Treasury 

9 of the United States. 

10 ‘‘TITLE IV—MISCELLANEOUS 

11 PROVISIONS 

12 ‘‘SEC. 401. REGULATIONS. 

13 ‘‘The Secretary of Agriculture and the Secretary of the 

14 Interior shall jointly issue regulations to carry out the pur15 poses of this Act. 

16 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 

17 ‘‘(a) IN GENERAL.—There are authorized to be appro18 priated such sums as are necessary to carry out this Act 

19 for each of fiscal years 2007 through 2011. 

20 ‘‘(b) EMERGENCY DESIGNATION.—Of the amounts au21 thorized to be appropriated under subsection (a) for fiscal 

22 year 2007, $425,000,000 is designated as an emergency re23 quirement pursuant to section 402 of H. Con. Res. 95 

24 (109th Congress). 


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1 ‘‘SEC. 403. TREATMENT OF FUNDS AND REVENUES. 

2 ‘‘(a) RELATION TO OTHER APPROPRIATIONS.—Funds 

3 made available under section 402 and funds made available 

4 to a Secretary concerned under section 206 shall be in addi5 tion to any other annual appropriations for the Forest 

6 Service and the Bureau of Land Management. 

7 ‘‘(b) DEPOSITOF REVENUES AND OTHER FUNDS.— 

8 All revenues generated from projects pursuant to title II, 

9 including any interest accrued from the revenues, shall be 

10 deposited in the Treasury of the United States.’’. 

11 (b) FOREST RECEIPT PAYMENTS TO ELIGIBLE STATES

12 AND COUNTIES.— 

13 (1) ACTOF MAY 23, 1908.—The sixth paragraph 

14 under the heading ‘‘FORESTSERVICE’’ in the Act of 

15 May 23, 1908 (16 U.S.C. 500) is amended in the first 

16 sentence by striking ‘‘twenty-five percentum’’ and all 

17 that follows through ‘‘shall be paid’’ and inserting the 

18 following: ‘‘an amount equal to the annual average of 

19 25 percent of all amounts received for the applicable 

20 fiscal year and each of the preceding 6 fiscal years 

21 from each national forest shall be paid’’. 

22 (2) WEEKS LAW.—Section 13 of the Act of 

23 March 1, 1911 (commonly known as the ‘‘Weeks 

24 Law’’) (16 U.S.C. 500) is amended in the first sen25 tence by striking ‘‘twenty-five percentum’’ and all 

26 that follows through ‘‘shall be paid’’ and inserting the 


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1 following: ‘‘an amount equal to the annual average of 

2 25 percent of all amounts received for the applicable 

3 fiscal year and each of the preceding 6 fiscal years 

4 from each national forest shall be paid’’. 

5 (c) PAYMENTS IN LIEU OF TAXES.— 

6 (1) IN GENERAL.—Section 6906 of title 31, 

7 United States Code, is amended to read as follows: 

8 ‘‘§ 6906. Funding 

9 ‘‘For each of fiscal years 2008 through 2012, such sums 

10 as are authorized under this chapter shall be made available 

11 to the Secretary of the Interior, out of any amounts in the 

12 Treasury not otherwise appropriated, for obligation or ex13 penditure in accordance with this chapter.’’. 

14 (2) CONFORMING AMENDMENT.—The table of sec15 tions for chapter 69 of title 31, United States Code, 

16 is amended by striking the item relating to section 

17 6906 and inserting the following: 

‘‘6906. Funding.’’. 

18 (d) INCREASE IN INFORMATION RETURN PEN19 ALTIES.— 

20 (1) FAILURE TO FILE CORRECT INFORMATION

21 RETURNS.— 

22 (A) IN GENERAL.—Section 6721(a)(1) of the 

23 Internal Revenue Code of 1986 is amended— 

24 (i) by striking ‘‘$50’’ and inserting 

25 ‘‘$250’’, and 


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1 (ii) by striking ‘‘$250,000’’ and insert2 ing ‘‘$3,000,000’’. 

3 (B) REDUCTION WHERE CORRECTION IN

4 SPECIFIED PERIOD.— 

5 (i) CORRECTION WITHIN 30 DAYS.— 

6 Section 6721(b)(1) of such Code is amend7 ed— 

8 (I) by striking ‘‘$15’’ and insert9 ing ‘‘$50’’, 

10 (II) by striking ‘‘$50’’ and insert11 ing ‘‘$250’’, and 

12 (III) by striking ‘‘$75,000’’ and 

13 inserting ‘‘$500,000’’. 

14 (ii) FAILURES CORRECTED ON OR BE15 FORE AUGUST 1.—Section 6721(b)(2) of 

16 such Code is amended— 

17 (I) by striking ‘‘$30’’ and insert18 ing ‘‘$100’’, 

19 (II) by striking ‘‘$50’’ and insert20 ing ‘‘$250’’, and 

21 (III) by striking ‘‘$150,000’’ and 

22 inserting ‘‘$1,500,000’’. 

23 (C) LOWER LIMITATION FOR PERSONS WITH

24 GROSS RECEIPTS OF NOT MORE THAN


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1 $5,000,000.—Section 6721(d)(1) of such Code is 

2 amended— 

3 (i) in subparagraph (A)— 

4 (I) by striking ‘‘$100,000’’ and 

5 inserting ‘‘$1,000,000’’, and 

6 (II) by striking ‘‘$250,000’’ and 

7 inserting ‘‘$3,000,000’’, 

8 (ii) in subparagraph (B)— 

9 (I) by striking ‘‘$25,000’’ and in10 serting ‘‘$175,000’’, and 

11 (II) by striking ‘‘$75,000’’ and in12 serting ‘‘$500,000’’, and 

13 (iii) in subparagraph (C)— 

14 (I) by striking ‘‘$50,000’’ and in15 serting ‘‘$500,000’’, and 

16 (II) by striking ‘‘$150,000’’ and 

17 inserting ‘‘$1,500,000’’. 

18 (D) PENALTY IN CASE OF INTENTIONAL DIS19 REGARD.—Section 6721(e) of such Code is 

20 amended— 

21 (i) by striking ‘‘$100’’ in paragraph 

22 (2) and inserting ‘‘$500’’, 

23 (ii) by striking ‘‘$250,000’’ in para24 graph (3)(A) and inserting ‘‘$3,000,000’’. 


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1 (2) FAILURE TO FURNISH CORRECT PAYEE

2 STATEMENTS.— 

3 (A) IN GENERAL.—Section 6722(a) of the 

4 Internal Revenue Code of 1986 is amended— 

5 (i) by striking ‘‘$50’’ and inserting 

6 ‘‘$250’’, and 

7 (ii) by striking ‘‘$100,000’’ and insert8 ing ‘‘$1,000,000’’. 

9 (B) PENALTY IN CASE OF INTENTIONAL DIS10 REGARD.—Section 6722(c) of such Code is 

11 amended— 

12 (i) by striking ‘‘$100’’ in paragraph 

13 (1) and inserting ‘‘$500’’, and 

14 (ii) by striking ‘‘$100,000’’ in para15 graph (2)(A) and inserting ‘‘$1,000,000’’. 

16 (3) FAILURE TO COMPLY WITH OTHER INFORMA17 TION REPORTING REQUIREMENTS.—Section 6723 of 

18 the Internal Revenue Code of 1986 is amended— 

19 (A) by striking ‘‘$50’’ and inserting 

20 ‘‘$250’’, and 

21 (B) by striking ‘‘$100,000’’ and inserting 

22 ‘‘$1,000,000’’. 

23 (4) EFFECTIVE DATE.—The amendments made 

24 by this section shall apply with respect to informaVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00298 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 tion returns required to be filed on or after January 

2 1, 2008. 

3 (e) REPEAL OF SUSPENSION OF CERTAIN PENALTIES

4 AND INTEREST.— 

5 (1) IN GENERAL.—Section 6404 of the Internal 

6 Revenue Code of 1986 is amended by striking sub7 section (g). 

8 (2) EFFECTIVE DATE.— 

9 (A) IN GENERAL.—Except as provided in 

10 paragraph (2), the amendment made by this sec11 tion shall apply to notices provided by the Sec12 retary of the Treasury, or his delegate after the 

13 date which is 6 months after the date of the en14 actment of this Act. 

15 (B) EXCEPTION FOR CERTAIN TAX16 PAYERS.—The amendment made by this section 

17 shall not apply to any taxpayer with respect to 

18 whom a suspension of any interest, penalty, ad19 dition to tax, or other amount is in effect on the 

20 date which is 6 months after the date of the en21 actment of this Act. 

22 (f) PARTICIPANTS IN GOVERNMENT SECTION 457 

23 PLANS ALLOWED TO TREAT ELECTIVE DEFERRALS AS

24 ROTH CONTRIBUTIONS.— 


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1 (1) IN GENERAL.—Section 402A(e)(1) of the In2 ternal Revenue Code of 1986 (defining applicable re3 tirement plan) is amended by striking ‘‘and’’ at the 

4 end of subparagraph (A), by striking the period at the 

5 end of subparagraph (B) and inserting ‘‘, and’’, and 

6 by adding at the end the following: 

7 ‘‘(C) an eligible deferred compensation plan 

8 (as defined in section 457(b)) of an eligible em9 ployer described in section 457(e)(1)(A).’’. 

10 (2) ELECTIVE DEFERRALS.—Section 402A(e)(2) 

11 of the Internal Revenue Code of 1986 (defining elec12 tive deferral) is amended to read as follows: 

13 ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective 

14 deferral’ means— 

15 ‘‘(A) any elective deferral described in sub16 paragraph (A) or (C) of section 402(g)(3), and 

17 ‘‘(B) any elective deferral of compensation 

18 by an individual under an eligible deferred com19 pensation plan (as defined in section 457(b)) of 

20 an eligible employer described in section 

21 457(e)(1)(A).’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall apply to taxable years begin24 ning after December 31, 2007. 


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1 SEC. 2602. Disaster relief funds from Public Law 109– 

2 234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, ‘‘Na3 tional Park Service—Historic Preservation Fund,’’ for nec4 essary expenses related to the consequences of Hurricane 

5 Katrina and other hurricanes of the 2005 season, may be 

6 used to reconstruct destroyed properties that at the time of 

7 destruction were listed in the National Register of Historic 

8 Places and are otherwise qualified to receive these funds: 

9 Provided, That the State Historic Preservation Officer cer10 tifies that, for the community where that destroyed property 

11 was located, that the property is iconic to or essential to 

12 illustrating that community’s historic identity, that no 

13 other property in that community with the same associative 

14 historic value has survived, and that sufficient historical 

15 documentation exists to ensure an accurate reproduction. 

16 CHAPTER 7 

17 DEPARTMENT OF HEALTH AND HUMAN 

18 SERVICES 

19 CENTERS FOR DISEASE CONTROL AND PREVENTION

20 DISEASE CONTROL, RESEARCH AND TRAINING

21 For an additional amount for ‘‘Department of Health 

22 and Human Services, Centers for Disease Control and Pre23 vention, Disease Control, Research and Training’’, to carry 

24 out section 501 of the Federal Mine Safety and Health Act 

25 of 1977 and section 6 of the Mine Improvement and New 


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1 Emergency Response Act of 2006, $13,000,000 for research 

2 to develop mine safety technology, including necessary re3 pairs and improvements to leased laboratories: Provided, 

4 That progress reports on technology development shall be 

5 submitted to the House and Senate Committees on Appro6 priations and the Committee on Health, Education, Labor 

7 and Pensions of the Senate and the Committee on Edu8 cation and Labor of the House of Representatives on a quar9 terly basis: Provided further, That the amount provided 

10 under this heading shall remain available until September 

11 30, 2008. 

12 ADMINISTRATION FOR CHILDREN AND FAMILIES

13 LOW-INCOME HOME ENERGY ASSISTANCE

14 For an additional amount for ‘‘Low-Income Home En15 ergy Assistance’’ under section 2604(a) through (d) of the 

16 Low-Income Home Energy Assistance Act of 1981 (42 

17 U.S.C. 8623(a) through (d)), $320,000,000. 

18 For an additional amount for ‘‘Low-Income Home En19 ergy Assistance’’ under section 2604(e) of the Low-Income 

20 Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), 

21 $320,000,000. 

22 OFFICE OF THE SECRETARY

23 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

24 (INCLUDING TRANSFER OF FUNDS)

25 For an additional amount for ‘‘Public Health and So26 cial Services Emergency Fund’’ to prepare for and respond 


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1 to an influenza pandemic, $820,000,000, to remain avail2 able until expended: Provided, That this amount shall be 

3 for activities including the development and purchase of 

4 vaccine, antivirals, necessary medical supplies, diagnostics, 

5 and other surveillance tools: Provided further, That prod6 ucts purchased with these funds may, at the discretion of 

7 the Secretary of Health and Human Services, be deposited 

8 in the Strategic National Stockpile: Provided further, That 

9 notwithstanding section 496(b) of the Public Health Service 

10 Act, funds may be used for the construction or renovation 

11 of privately owned facilities for the production of pandemic 

12 vaccine and other biologicals, where the Secretary finds 

13 such a contract necessary to secure sufficient supplies of 

14 such vaccines or biologicals: Provided further, That funds 

15 appropriated herein may be transferred to other appropria16 tion accounts of the Department of Health and Human 

17 Services, as determined by the Secretary to be appropriate, 

18 to be used for the purposes specified in this sentence. 

19 COVERED COUNTERMEASURE PROCESS FUND

20 For carrying out section 319F–4 of the Public Health 

21 Service Act (42 U.S.C. 247d–6e) to compensate individuals 

22 for injuries caused by H5N1 vaccine, in accordance with 

23 the declaration regarding avian influenza viruses issued by 

24 the Secretary of Health and Human Services on January 

25 26, 2007, pursuant to section 319F–3(b) of such Act (42 


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1 U.S.C. 247d–6d(b)), $50,000,000, to remain available until 

2 expended. 

3 DEPARTMENT OF EDUCATION 

4 HIGHER EDUCATION

5 For an additional amount under part B of title VII 

6 of the Higher Education Act of 1965 (‘‘HEA’’) for institu7 tions of higher education (as defined in section 102 of that 

8 Act) that are located in an area in which a major disaster 

9 was declared in accordance with section 401 of the Robert 

10 T. Stafford Disaster Relief and Emergency Assistance Act 

11 related to hurricanes in the Gulf of Mexico in calendar year 

12 2005, $30,000,000: Provided, That such funds shall be 

13 available to the Secretary of Education only for payments 

14 to help defray the expenses (which may include lost revenue, 

15 reimbursement for expenses already incurred, and construc16 tion) incurred by such institutions of higher education that 

17 were forced to close, relocate or significantly curtail their 

18 activities as a result of damage directly caused by such hur19 ricanes and for payments to enable such institutions to pro20 vide grants to students who attend such institutions for aca21 demic years beginning on or after July 1, 2006: Provided 

22 further, That such payments shall be made in accordance 

23 with criteria established by the Secretary and made pub24 licly available without regard to section 437 of the General 


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1 Education Provisions Act, section 553 of title 5, United 

2 States Code, or part B of title VII of the HEA. 

3 HURRICANE EDUCATION RECOVERY

4 For carrying out activities authorized by subpart 1 of 

5 part D of title V of the Elementary and Secondary Edu6 cation Act of 1965, $30,000,000, to remain available until 

7 expended, for use by the States of Louisiana, Mississippi, 

8 and Alabama primarily for recruiting, retaining, and com9 pensating new and current teachers, principals, school lead10 ers, and other educators for positions in public elementary 

11 and secondary schools located in an area with respect to 

12 which a major disaster was declared under section 401 of 

13 the Robert T. Stafford Disaster Relief and Emergency As14 sistance Act (42 U.S.C. 5170) by reason of Hurricane 

15 Katrina or Hurricane Rita, including through such mecha16 nisms as paying salary premiums, performance bonuses, 

17 housing subsidies, and relocation costs, with priority given 

18 to teachers and school leaders who were displaced from, or 

19 lost employment in, Louisiana, Mississippi, or Alabama by 

20 reason of Hurricane Katrina or Hurricane Rita and who 

21 return to and are rehired by such State or local educational 

22 agency; Provided, That funds available under this heading 

23 to such States may also be used for 1 or more of the fol24 lowing activities: (1) to build the capacity of such public 

25 elementary and secondary schools to provide an effective 


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1 education, including the design, adaptation, and implemen2 tation of high-quality formative assessments; (2) the estab3 lishment of partnerships with nonprofit entities with a 

4 demonstrated track record in recruiting and retaining out5 standing teachers and other school leaders; and (3) paid re6 lease time for teachers and principals to identify and rep7 licate successful practices from the fastest-improving and 

8 highest-performing schools: Provided further, That the Sec9 retary of Education shall allocate amounts available under 

10 this heading among such States that submit applications; 

11 that such allocation shall be based on the number of public 

12 elementary and secondary schools in each State that were 

13 closed for 19 days or more during the period beginning on 

14 August 29, 2005, and ending on December 31, 2005, due 

15 to Hurricane Katrina or Hurricane Rita; and that such 

16 States shall in turn allocate funds, on a competitive basis, 

17 to local educational agencies, with priority given first to 

18 such agencies with the highest percentages of public elemen19 tary and secondary schools that are closed as a result of 

20 such hurricanes as of the date of enactment of this Act and 

21 then to such agencies with the highest percentages of public 

22 elementary and secondary schools with a student-teacher 

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

24 to be distributed to such agencies with demonstrated need, 

25 as determined by the State educational agency: Provided 


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1 further, That, in the case of a State that chooses to use 

2 amounts available under this heading for performance bo3 nuses, not later than 60 days after the date of enactment 

4 of this Act and after consultation with, as applicable, local 

5 educational agencies, teachers’ unions, local principals’ or6 ganizations, local parents’ organizations, local business or7 ganizations, and local charter schools organizations, such 

8 State shall establish and implement a rating system for 

9 such performance bonuses based on strong learning gains 

10 for students and growth in student achievement, based on 

11 classroom observation and feedback at least 4 times annu12 ally, conducted by multiple sources (including principals 

13 and master teachers), and evaluated against research-vali14 dated rubrics that use planning, instructional, and learn15 ing environment standards to measure teaching perform16 ance: Provided further, That the amount provided under 

17 this heading is designated as an emergency requirement 

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

20 HURRICANE EDUCATION RECOVERY

21 PROGRAMS TO RESTART SCHOOL OPERATIONS

22 Funds made available under section 102 of the Hurri23 cane Education Recovery Act (title IV of division B of Pub24 lic Law 109–148) may be used by the States of Louisiana, 

25 Mississippi, Alabama, and Texas, in addition to the uses 


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1 of funds described in section 102(e) for the following costs: 

2 (1) recruiting, retaining and compensating new and cur3 rent teachers, principals, school leaders, other school admin4 istrators, and other educators for positions in reopening 

5 public elementary and secondary schools impacted by Hur6 ricane Katrina or Hurricane Rita, including through such 

7 mechanisms as paying salary premiums, performance bo8 nuses, housing subsidies and relocation costs; and (2) activi9 ties to build the capacity of reopening such public elemen10 tary and secondary schools to provide an effective edu11 cation, including the design, adaptation, and implementa12 tion of high-quality formative assessments; the establish13 ment of partnerships with nonprofit entities with a dem14 onstrated track record in recruiting and retaining out15 standing teachers and other school leaders; and paid release 

16 time for teachers and principals to identify and replicate 

17 successful practices from the fastest-improving and highest18 performing schools: Provided further, That in the case of 

19 a State that chooses to use amounts available under this 

20 heading for performance bonuses, not later than 60 days 

21 after the date of enactment of this Act and after consulta22 tion with, as applicable, local educational agencies, teach23 ers’ unions, local principals’ organizations, local parents’ 

24 organizations, local business organizations, and local char25 ter schools organizations, such State shall establish and imVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00308 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 plement a rating system that shall be based on strong learn2 ing gains for students and growth in student achievement, 

3 based on classroom observation and feedback at least 4 times 

4 annually, conducted by multiple sources (including prin5 cipals and master teachers), and evaluated against re6 search-validated rubrics that use planning, instructional, 

7 and learning environment standards to measure teaching 

8 performance: Provided further, That the amount provided 

9 under this heading is designated as an emergency require10 ment pursuant to section 402 of H. Con. Res. 95 (109th 

11 Congress). 

12 GENERAL PROVISIONS—THIS CHAPTER 

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

14 Public Law 109–148 is amended by adding at the end the 

15 following new sentence: ‘‘With respect to the program au16 thorized by section 102 of this Act, the waiver authority 

17 in subsection (a) of this section shall be available until the 

18 end of fiscal year 2008.’’ 

19 (INCLUDING RESCISSION)

20 SEC. 2702. (a) From unexpended balances of the 

21 amounts made available in the 2001 Emergency Supple22 mental Appropriations Act for Recovery from and Response 

23 to Terrorist Attacks on the United States (Public Law 107– 

24 38) for the Employment Training Administration, Train25 ing and Employment Services under the Department of 

26 Labor, $3,589,000 are rescinded. 


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1 (b) For an additional amount for the Centers for Dis2 ease Control and Prevention for carrying out activities 

3 under section 5011(b) of the Emergency Supplemental Ap4 propriations Act to Address Hurricanes in the Gulf of Mex5 ico and Pandemic Influenza, 2006 (Public Law 109–148), 

6 $3,589,000. 

7 SEC. 2703. Notwithstanding section 2002(c) of the So8 cial Security Act (42 U.S.C. 1397a(c)), funds made avail9 able under the heading ‘‘Social Services Block Grant’’ in 

10 division B of Public Law 109–148 shall be available for 

11 expenditure by the States through the end of fiscal year 

12 2008. 

13 SEC. 2704. ELIMINATION OF REMAINDER OF SCHIP 

14 FUNDING SHORTFALLS FOR FISCAL YEAR 2007. (a) ELIMI15 NATION OF REMAINDER OF FUNDING SHORTFALLS, TIERED

16 MATCH, AND OTHER LIMITATION ON EXPENDITURES.— 

17 Section 2104(h) of the Social Security Act (42 U.S.C. 

18 1397dd(h)), as added by section 201(a) of the National In19 stitutes of Health Reform Act of 2006 (Public Law 109– 

20 482), is amended— 

21 (1) in the heading for paragraph (2), by striking 

22 ‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; 

23 and 

24 (2) by striking paragraph (4) and inserting the 

25 following: 


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1 ‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE2 MAINDER OF FISCAL YEAR 2007 FUNDING SHORT3 FALLS.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 allot to each remaining shortfall State described 

6 in subparagraph (B) such amount as the Sec7 retary determines will eliminate the estimated 

8 shortfall described in such subparagraph for the 

9 State for fiscal year 2007. 

10 ‘‘(B) REMAINING SHORTFALL STATE DE11 SCRIBED.—For purposes of subparagraph (A), a 

12 remaining shortfall State is a State with a State 

13 child health plan approved under this title for 

14 which the Secretary estimates, on the basis of the 

15 most recent data available to the Secretary as of 

16 the date of the enactment of this paragraph, that 

17 the projected federal expenditures under such 

18 plan for the State for fiscal year 2007 will exceed 

19 the sum of— 

20 ‘‘(i) the amount of the State’s allot21 ments for each of fiscal years 2005 and 

22 2006 that will not be expended by the end 

23 of fiscal year 2006; 

24 ‘‘(ii) the amount of the State’s allot25 ment for fiscal year 2007; and 


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1 ‘‘(iii) the amounts, if any, that are to 

2 be redistributed to the State during fiscal 

3 year 2007 in accordance with paragraphs 

4 (1) and (2). 

5 ‘‘(C) APPROPRIATION; ALLOTMENT AUTHOR6 ITY.—For the purpose of providing additional 

7 allotments to remaining shortfall States under 

8 this paragraph there is appropriated, out of any 

9 funds in the Treasury not otherwise appro10 priated, such sums as are necessary for fiscal 

11 year 2007.’’. 

12 (b) CONFORMING AMENDMENTS.—Section 2104(h) of 

13 such Act (42 U.S.C. 1397dd(h)) (as so added), is amend14 ed— 

15 (1) in paragraph (1)(B), by striking ‘‘subject to 

16 paragraph (4)(B) and’’; 

17 (2) in paragraph (2)(B), by striking ‘‘subject to 

18 paragraph (4)(B) and’’; 

19 (3) in paragraph (5)(A), by striking ‘‘and (3)’’ 

20 and inserting ‘‘(3), and (4)’’; and 

21 (4) in paragraph (6)— 

22 (A) in the first sentence— 

23 (i) by inserting ‘‘or allotted’’ after ‘‘re24 distributed’’; and 


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1 (ii) by inserting ‘‘or allotments’’ after 

2 ‘‘redistributions’’; and 

3 (B) by striking ‘‘and (3)’’ and inserting 

4 ‘‘(3), and (4)’’. 

5 (c) GENERAL EFFECTIVE DATE; APPLICABILITY.—Ex6 cept as otherwise provided, the amendments made by this 

7 section take effect on the date of enactment of this Act and 

8 apply without fiscal year limitation. 

9 SEC. 2705. Notwithstanding any other provision of 

10 law, the Secretary of Health and Human Services shall not, 

11 prior to the date that is 2 years after the date of enactment 

12 of this Act, take any action to finalize, or otherwise imple13 ment provisions— 

14 (1) contained in the proposed rule published on 

15 January 18, 2007, on pages 2236 through 2258 of 

16 volume 72, Federal Register (relating to parts 433, 

17 447, and 457 of title 42, Code of Federal Regulations) 

18 or any other rule that would affect the Medicaid pro19 gram established under title XIX of the Social Secu20 rity Act or the State Children’s Health Insurance 

21 Program established under title XXI of such Act in a 

22 similar manner; or 

23 (2) restricting payments for graduate medical 

24 education under the Medicaid program. 


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1 (a) MEDICARE CRITICAL ACCESS HOSPITAL DESIGNA2 TION.—Section 405(h) of the Medicare Prescription Drug, 

3 Improvement, and Modernization Act of 2003 (Public Law 

4 108–173; 117 Stat. 2269) is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(3) EXCEPTION.— 

7 ‘‘(A) STATE OF MINNESOTA.—The amend8 ment made by paragraph (1) shall not apply to 

9 the certification by the State of Minnesota on or 

10 after January 1, 2006, under section 

11 1820(c)(2)(B)(i)(II) of the Social Security Act 

12 (42 U.S.C. 1395i–4(c)(2)(B)(i)(II)) of one hos13 pital that meets the criteria described in sub14 paragraph (B) and is located in Cass County, 

15 Minnesota, as a necessary provider of health care 

16 services to residents in the area of the hospital. 

17 ‘‘(B) CRITERIA DESCRIBED FOR HOSPITAL

18 IN MINNESOTA.—A hospital meets the criteria de19 scribed in this subparagraph if the hospital— 

20 ‘‘(i) has been granted an exception by 

21 the State to an otherwise applicable statu22 tory restriction on hospital construction or 

23 licensing prior to the date of enactment of 

24 this subparagraph; and 


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1 ‘‘(ii) is located on property which the 

2 State has approved for conveyance to a 

3 county within the State prior to such date 

4 of enactment. 

5 ‘‘(C) STATE OF MISSISSIPPI.—The amend6 ment made by paragraph (1) shall not apply to 

7 the certification by the State of Mississippi on or 

8 after April 1, 2007, under section 

9 1820(c)(2)(b)(i)(II) of the Social Security Act 

10 (42 U.S.C. 1395i–4(c)(2)(B)(i)(II)) of one hos11 pital that meets the criteria described in sub12 paragraph (D) and is located in Kemper Coun13 ty, Mississippi, as a necessary provider of health 

14 care services to residents in the area of the hos15 pital. 

16 ‘‘(D) CRITERIA DESCRIBED FOR HOSPITAL

17 IN MISSISSIPPI.—A hospital meets the criteria 

18 described in this subparagraph if the hospital— 

19 ‘‘(i) meets all other criteria for des20 ignation as a critical access hospital under 

21 section 1820(c)(2)(b) of the Social Security 

22 Act (42 U.S.C. 1395i–4(c)(2)(B)); 

23 ‘‘(ii) has satisfied the requirement of 

24 the certificate of need laws and regulations 

25 of the State of Mississippi; and 


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1 ‘‘(iii) will be constructed on property 

2 that will be conveyed by the Kemper County 

3 Board of Supervisors within the State of 

4 Mississippi.’’. 

5 (b) INCREASE IN BASIC REBATE FOR SINGLE SOURCE

6 DRUGS AND INNOVATOR MULTIPLE SOURCE DRUGS.—Sec7 tion 1927(c)(1)(B)(i) of the Social Security Act (42 U.S.C. 

8 1396r–8(c)(1)(B)(i)) is amended— 

9 (1) in subclause (IV), by striking ‘‘and’’ after the 

10 semicolon; 

11 (2) in subclause (V)— 

12 (A) by inserting ‘‘and before April 1, 2007,’’ 

13 after ‘‘1995,’’; and 

14 (B) by striking the period and inserting ‘‘; 

15 and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(VI) after March 31, 2007, is 20 

18 percent.’’. 

19 SEC. 2705. (a) For grant years beginning in 2006– 

20 2007, the Secretary of Health and Human Services may 

21 waive the requirements of, with respect to Louisiana, Mis22 sissippi, Alabama, and Texas and any eligible metropolitan 

23 area in Louisiana, Mississippi, Alabama, and Texas, the 

24 following sections of the Public Health Service Act: 


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1 (1) Section 2612(e)(1) of such Act (42 U.S.C. 

2 300ff–21(b)(1)). 

3 (2) Section 2617(b)(7)(E) of such Act (42 U.S.C. 

4 300ff–27(b)(7)(E)). 

5 (3) Section 2617(d) of such Act (42 U.S.C. 

6 300ff–27(d)), except that such waiver shall apply so 

7 that the matching requirement is reduced to $1 for 

8 each $4 of Federal funds provided under the grant in9 volved. 

10 (b) If the Secretary of Health and Human Services 

11 grants a waiver under subsection (b), the Secretary— 

12 (1) may not prevent Louisiana, Mississippi, Ala13 bama, and Texas or any eligible metropolitan area in 

14 Louisiana, Mississippi, Alabama, and Texas from re15 ceiving or utilizing, or both, funds granted or distrib16 uted, or both, pursuant to title XXVI of the Public 

17 Health Service Act (42 U.S.C. 300ff–11 et seq.) be18 cause of the failure of Louisiana, Mississippi, Ala19 bama, and Texas or any eligible metropolitan area in 

20 Louisiana, Mississippi, Alabama, and Texas to com21 ply with the requirements of the sections listed in 

22 paragraphs (1) through (3) of subsection (a); 

23 (2) may not take action due to such noncompli24 ance; and 


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1 (3) shall assess, evaluate, and review Louisiana, 

2 Mississippi, Alabama, and Texas or any eligible met3 ropolitan area’s eligibility for funds under such title 

4 XXVI as if Louisiana, Mississippi, Alabama, and 

5 Texas or such eligible metropolitan area had fully 

6 complied with the requirements of the sections listed 

7 in paragraphs (1) through (3) of subsection (a). 

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

9 Mississippi, Alabama, and Texas and any eligible metro10 politan area in Louisiana, Mississippi, Alabama, and 

11 Texas shall comply with each of the applicable requirements 

12 under title XXVI of the Public Health Service Act (42 

13 U.S.C. 300ff–11 et seq.). 

14 CHAPTER 8 

15 LEGISLATIVE BRANCH 

16 ARCHITECT OF THE CAPITOL 

17 CAPITOL POWER PLANT

18 For an additional amount for ‘‘Capitol Power Plant’’, 

19 $25,000,000, for emergency utility tunnel repairs and as20 bestos abatement, to remain available until September 30, 

21 2011: Provided, That the Architect of the Capitol may not 

22 obligate any of the funds appropriated under this heading 

23 without approval of an obligation plan by the Committees 

24 on Appropriations of the Senate and House of Representa25 tives. 


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1 GOVERNMENT ACCOUNTABILITY OFFICE 

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’ of the Government Accountability Office, $374,000, 

5 to remain available until expended. 

6 CHAPTER 9 

7 DEPARTMENT OF DEFENSE 

8 MILITARY CONSTRUCTION 

9 MILITARY CONSTRUCTION, AIR FORCE RESERVE

10 (INCLUDING RESCISSION OF FUNDS)

11 For an additional amount for ‘‘Military Construction, 

12 Air Force Reserve’’, $3,096,000, to remain available until 

13 September 30, 2011: Provided, That such funds may be obli14 gated and expended to carry out planning and design and 

15 military construction projects not otherwise authorized by 

16 law. 

17 Of the funds appropriated for ‘‘Military Construction, 

18 Air Force Reserve’’ under Public Law 109–114, $3,096,000 

19 are hereby rescinded. 

20 DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT, 

21 2005 

22 For deposit into the Department of Defense Base Clo23 sure Account 2005, established by section 2906(a)(1) of the 

24 Defense Base Closure and Realignment Act of 1990 (10 


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

2 until expended. 

3 DEPARTMENT OF VETERANS AFFAIRS 

4 VETERANS HEALTH ADMINISTRATION

5 MEDICAL SERVICES

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

7 $454,131,000, to remain available until expended, of which 

8 $50,000,000 shall be for the establishment of new Level I 

9 comprehensive polytrauma centers; $9,440,000 shall be for 

10 the establishment of polytrauma residential transitional re11 habilitation programs; $20,000,000 shall be for additional 

12 transition caseworkers; $30,000,000 shall be for substance 

13 abuse treatment programs; $20,000,000 for readjustment 

14 counseling; $10,000,000 shall be for blind rehabilitation 

15 services; $100,000,000 shall be for enhancements to mental 

16 health services; $8,000,000 shall be for polytrauma support 

17 clinic teams; $5,356,000 for additional polytrauma points 

18 of contacts; and $201,335,000 shall be for treatment of Op19 eration Enduring Freedom and Operation Iraqi Freedom 

20 veterans. 

21 MEDICAL ADMINISTRATION

22 For an additional amount for ‘‘Medical Administra23 tion’’, $250,000,000, to remain available until expended. 

24 MEDICAL FACILITIES

25 For an additional amount for ‘‘Medical Facilities’’, 

26 $595,000,000, to remain available until expended, of which 


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1 $45,000,000 shall be used for facility and equipment up2 grades at the Department of Veterans Affairs polytrauma 

3 rehabilitation centers and the polytrauma network sites; 

4 and $550,000,000 shall be for non-recurring maintenance 

5 as identified in the Department of Veterans Affairs Facility 

6 Condition Assessment report: Provided, That the amount 

7 provided under this heading for non-recurring maintenance 

8 shall be allocated in a manner outside of the Veterans Equi9 table Resource Allocation and specific to the needs and geo10 graphic distribution of Operation Enduring Freedom and 

11 Operation Iraqi Freedom veterans: Provided further, That 

12 within 30 days of enactment of this Act the Secretary shall 

13 submit to the Committees on Appropriations of both Houses 

14 of Congress an expenditure plan for non-recurring mainte15 nance prior to obligation. 

16 MEDICAL AND PROSTHETIC RESEARCH

17 For an additional amount for ‘‘Medical and Prosthetic 

18 Research’’, $30,000,000, to remain available until ex19 pended, which shall be used for research related to the 

20 unique medical needs of returning Operation Enduring 

21 Freedom and Operation Iraqi Freedom veterans. 

22 DEPARTMENTAL ADMINISTRATION

23 GENERAL OPERATING EXPENSES

24 For an additional amount for ‘‘General Operating Ex25 penses’’, $46,000,000, to remain available until expended, 


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1 for the hiring and training of new pension and compensa2 tion claims processing personnel. 

3 INFORMATION TECHNOLOGY SYSTEMS

4 For an additional amount for ‘‘Information Tech5 nology Systems’’, $36,100,000, to remain available until ex6 pended, of which $20,000,000 shall be for information tech7 nology support and improvements for processing of OIF/ 

8 OEF veterans benefits claims, including making electronic 

9 DOD medical records available for claims processing and 

10 enabling electronic benefits applications by veterans; 

11 $1,000,000 shall be for the digitization of benefits records; 

12 and $15,100,000 shall be for electronic data breach and re13 mediation and prevention. 

14 CONSTRUCTION, MINOR PROJECTS

15 For an additional amount for ‘‘Construction, Minor 

16 Projects’’, $355,907,000, to remain available until ex17 pended, of which $36,000,000 shall be for construction costs 

18 associated with the establishment of polytrauma residential 

19 transitional rehabilitation programs. 

20 GENERAL PROVISIONS—THIS CHAPTER 

21 SEC. 2901. (a) Notwithstanding any other provision 

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

23 be used to downsize staff or to close, realign or phase out 

24 essential services at Walter Reed Army Medical Center until 

25 equivalent medical facilities at the Walter Reed National 

26 Military Medical Center at Naval Medical Center, Bethesda, 


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1 Maryland, and/or the Fort Belvoir, Virginia, Community 

2 Hospital have been constructed and equipped, and until the 

3 Secretary of Defense has certified in writing to the Congress 

4 that: 

5 (1) the new facilities at Walter Reed National 

6 Military Medical Center at Bethesda and/or the Fort 

7 Belvoir Community Hospital are complete and fully 

8 operational, and 

9 (2) replacement medical facilities at Walter Reed 

10 National Military Medical Center at Bethesda have 

11 adequate capacity to meet both the existing and pro12 jected demand for complex medical care and services, 

13 including outpatient and medical hold facilities, for 

14 combat veterans and other military personnel. 

15 (b) Not later than 30 days after enactment of this Act, 

16 the Secretary of Defense shall provide to the Committees on 

17 Appropriations of the Senate and House of Representatives 

18 a report and proposed timetable outlining the Department’s 

19 plan to transition patients, staff and medical services to 

20 the new facilities at Bethesda and Fort Belvoir without 

21 compromising patient care, staffing requirements or facility 

22 maintenance at the Walter Reed Medical Center. 

23 (c) To ensure that the quality of care provided by the 

24 Military Health System is not diminished during this tran25 sition, the Walter Reed Army Medical Center shall be adeVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00323 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 quately funded, to include necessary renovation and main2 tenance of existing facilities, to continue the maximum level 

3 of inpatient and outpatient services. 

4 SEC. 2902. Notwithstanding any other provision of 

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

6 used to reorganize or relocate the functions of the Armed 

7 Forces Institute of Pathology (AFIP) until the Secretary 

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

9 a detailed plan and timetable for the proposed reorganiza10 tion and relocation to the Committees on Appropriations 

11 and Armed Services of the Senate and House of Representa12 tives. The plan shall take into consideration the rec13 ommendations of a study being prepared by the Govern14 ment Accountability Office (GAO), provided that such study 

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

16 in this section, on the impact of dispersing selected func17 tions of AFIP among several locations, and the possibility 

18 of consolidating those functions at one location. The plan 

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

20 operation of the Program Management Office for second 

21 opinion consults that are consistent with the recommenda22 tions of the Base Realignment and Closure Commission, to23 gether with the rationale for the option selected by the Sec24 retary. 


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1 SEC. 2903. Within existing funds appropriated to De2 partmental Administration, General Operating Expenses 

3 for fiscal year 2007, and within 30 days after enactment 

4 of this Act, the Department of Veterans Affairs shall con5 tract with the National Academy of Public Administration 

6 for the purpose of conducting an independent study and 

7 analysis of the organizational structure, management and 

8 coordination processes, including Seamless Transition, uti9 lized by the Department of Veterans affairs to: 

10 (1) provide health care to active duty and vet11 erans of Operation Enduring Freedom and Operation 

12 Iraqi Freedom; and 

13 (2) provide benefits to veterans of Operation En14 during Freedom and Operation Iraqi Freedom. 

15 SEC. 2904. The Director of the Congressional Budget 

16 Office shall, not later than November 15, 2007, submit to 

17 the Committees on Appropriations of the House of Rep18 resentatives and the Senate a report projecting appropria19 tions necessary for the Departments of Defense and Veterans 

20 Affairs to continue providing necessary health care to vet21 erans of the conflicts in Iraq and Afghanistan. The projec22 tions should span several scenarios for the duration and 

23 number of forces deployed in Iraq and Afghanistan, and 

24 more generally, for the long-term health care needs of deVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00325 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 ployed troops engaged in the global war on terrorism over 

2 the next ten years. 

3 CHAPTER 10 

4 DEPARTMENT OF TRANSPORTATION 

5 FEDERAL HIGHWAY ADMINISTRATION

6 FEDERAL-AID HIGHWAYS

7 EMERGENCY RELIEF PROGRAM

8 (INCLUDING RESCISSION OF FUNDS)

9 For an additional amount for the Emergency Relief 

10 Program as authorized under section 125 of title 23, United 

11 States Code, $388,903,000, to remain available until ex12 pended: Provided, That of the unobligated balances of funds 

13 apportioned to each State under chapter 1 of title 23, 

14 United States Code, $388,903,000 are rescinded: Provided 

15 further, That such rescission shall not apply to the funds 

16 distributed in accordance with sections 130(f) and 

17 104(b)(5) of title 23, United States Code; sections 133(d)(1) 

18 and 163 of such title, as in effect on the day before the date 

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

20 of section 133(d)(3)(A) of such title: Provided further, That 

21 section 4103 of title III of this Act shall not apply to the 

22 first proviso under this paragraph. 

23 FEDERAL TRANSIT ADMINISTRATION

24 FORMULA GRANTS

25 For an additional amount to be allocated by the Sec26 retary to recipients of assistance under chapter 53 of title 


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1 49, United States Code, directly affected by Hurricanes 

2 Katrina and Rita, $75,000,000, for the operating and cap3 ital costs of transit services, to remain available until ex4 pended: Provided, That the Federal share for any project 

5 funded from this amount shall be 100 percent. 

6 DEPARTMENT OF HOUSING AND URBAN 

7 DEVELOPMENT 

8 OFFICE OF INSPECTOR GENERAL

9 For an additional amount for the Office of Inspector 

10 General, for the necessary costs related to the consequences 

11 of Hurricanes Katrina and Rita, $5,000,000, to remain 

12 available until expended. 

13 GENERAL PROVISIONS—THIS CHAPTER 

14 SEC. 3001. Section 21033 of the Continuing Appro15 priations Resolution, 2007 (division B of Public Law 109– 

16 289, as amended by Public Law 110–5) is amended by add17 ing after the third proviso: ‘‘: Provided further, That not18 withstanding the previous proviso, except for applying the 

19 2007 Annual Adjustment Factor and making any other 

20 specified adjustments, public housing agencies that are eli21 gible for assistance under section 901 in Public Law 109– 

22 148 (119 Stat. 2781) shall receive funding for calendar year 

23 2007 based on the amount such public housing agencies 

24 were eligible to receive in calendar year 2006’’. 


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1 TITLE III 

2 OTHER MATTERS 

3 CHAPTER 1 

4 DEPARTMENT OF AGRICULTURE 

5 FARM SERVICE AGENCY

6 SALARIES AND EXPENSES

7 For an additional amount for ‘‘Salaries and Ex8 penses’’ of the Farm Service Agency, $75,000,000, to remain 

9 available until expended: Provided, That this amount shall 

10 only be available for the modernization and repair of the 

11 computer systems used by the Farm Service Agency (includ12 ing all software, hardware, and personnel required for mod13 ernization and repair): Provided further, That of this 

14 amount $27,000,000 shall be made available 60 days after 

15 the date on which the Farm Service Agency submits to the 

16 Committee on Appropriations of the Senate, the Committee 

17 on Appropriations of the House of Representatives, and the 

18 Government Accountability Office a spending plan for the 

19 funds. 

20 GENERAL PROVISIONS—THIS CHAPTER 

21 (RESCISSION)

22 SEC. 3101. Of the unobligated balances of funds made 

23 available pursuant to section 298(a) of the Trade Act of 

24 1974 (19 U.S.C. 2401G(a)), $75,000,000 are rescinded. 


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1 SEC. 3102. (a) Section 1237A(f) of the Food Security 

2 Act of 1985 (16 U.S.C. 3837a(f)) is amended in the first 

3 sentence by striking ‘‘fair market value of the land less the 

4 fair market value of such land encumbered by the easement’’ 

5 and inserting ‘‘fair market value of the land as determined 

6 in accordance with the method of valuation used by the Sec7 retary as of January 1, 2003’’. 

8 (b) Section 1238I(c)(1) of the Food Security Act of 

9 1985 (16 U.S.C. 3838i(c)(1)) is amended by inserting at 

10 the end the following: 

11 ‘‘(C) VALUATION.—The Secretary shall de12 termine fair market value under this paragraph 

13 in accordance with the method of valuation used 

14 by the Secretary as of January 1, 2003.’’. 

15 SEC. 3103. Subsection (b)(1) of section 313A of the 

16 Rural Electrification Act shall not apply in the case of a 

17 cooperative lender that has previously received a guarantee 

18 under section 313A and such additional guarantees shall 

19 not exceed the amount provided for in Public Law 110– 

20 5. 

21 SEC. 3104. SPINACH. No funds made available under 

22 this Act shall be used to make payments to growers and 

23 first handlers, as defined by the Secretary of Health and 

24 Human Services, of fresh spinach that were unable to mar25 ket spinach crops as a result of the Food and Drug AdminVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00329 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 istration Public Health Advisory issued on September 14, 

2 2006. 

3 CHAPTER 2 

4 GENERAL PROVISIONS—THIS CHAPTER 

5 SEC. 3201. Section 20314 of the Continuing Appro6 priations Resolution, 2007 (division B of Public Law 109– 

7 289, as amended by Public Law 110–5) is amended by 

8 striking ‘‘Resources.’’ and inserting in lieu thereof: ‘‘Re9 sources: Provided, That $22,762,000 of the amount provided 

10 be for geothermal research and development activities: Pro11 vided further, That $229,500,000 of the amount provided 

12 shall be used for the weatherization assistance program of 

13 the Department of Energy.’’. 

14 SEC. 3202. Hereafter, federal employees at the Na15 tional Energy Technology Laboratory shall be classified as 

16 inherently governmental for the purpose of the Federal Ac17 tivities Inventory Reform Act of 1998 (31 U.S.C. 501 note). 

18 SEC. 3203. PROHIBITION ON CERTAIN USES OF FUNDS

19 BY BPA. None of the funds made available under this or 

20 any other Act shall be used during fiscal year 2007 to make, 

21 or plan or prepare to make, any payment on bonds issued 

22 by the Administrator of the Bonneville Power Administra23 tion (referred in this section as the ‘‘Administrator’’) or for 

24 an appropriated Federal Columbia River Power System in25 vestment, if the payment is both— 


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1 (1) greater, during any fiscal year, than the 

2 payments calculated in the rate hearing of the Ad3 ministrator to be made during that fiscal year using 

4 the repayment method used to establish the rates of 

5 the Administrator as in effect on October 1, 2006; and 

6 (2) based or conditioned on the actual or ex7 pected net secondary power sales receipts of the Ad8 ministrator. 

9 CHAPTER 3 

10 GENERAL PROVISIONS—THIS CHAPTER 

11 SEC. 3301. The structure of any of the offices or compo12 nents within the Office of National Drug Control Policy 

13 shall remain as they were on October 1, 2006. None of the 

14 funds appropriated or otherwise made available in the Con15 tinuing Appropriations Resolution, 2007 (Public Law 110– 

16 5) may be used to implement a reorganization of offices 

17 within the Office of National Drug Control Policy without 

18 the explicit approval of the Committees on Appropriations 

19 of the House of Representatives and the Senate. 

20 SEC. 3302. Funds made available in section 21075 of 

21 the Continuing Appropriations Resolution, 2007 (Public 

22 Law 110–5) shall be made available to a 501(c)(3) entity: 

23 (1) with a wide anti-drug coalition network and member24 ship base, and one with a demonstrated track record and 

25 specific expertise in providing technical assistance, trainVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00331 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 ing, evaluation, research, and capacity building to commu2 nity anti-drug coalitions; (2) with authorization from Con3 gress, both prior to fiscal year 2007, and in fiscal years 

4 2008 through 2012, to perform the duties described in sub5 section (1) of this section; and (3) that has previously re6 ceived funding from Congress, including through a competi7 tive process as well as direct funding, for providing the du8 ties described in subsection (1) of this section: Provided, 

9 That funds appropriated in section 21075 shall be obligated 

10 within sixty days after enactment of this Act. 

11 SEC. 3303. Funds made available under section 613 

12 of Public Law 109–108 (119 Stat. 2338) for Nevada’s Com13 mission on Economic Development shall be made available 

14 to the Nevada Center for Entrepreneurship and Technology 

15 (CET). 

16 SEC. 3304. From the amount provided by section 

17 21067 of the Continuing Appropriations Resolution, 2007 

18 (Public Law 110–5), the National Archives and Records 

19 Administration may obligate monies necessary to carry out 

20 the activities of the Public Interest Declassification Board. 

21 SEC. 3305. None of the funds appropriated or other22 wise made available in section 21063 of the Continuing Ap23 propriations Resolution, 2007 (Public Law 110–5) for the 

24 ‘‘General Services Administration, Real Property Activi25 ties, Federal Buildings Fund’’, may be obligated for design, 


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1 construction, or acquisition until the House and Senate 

2 Committees on Appropriations approve a revised detailed 

3 plan, by project, on the use of such funds: Provided, That 

4 the new plan shall include funding for completion of court5 house construction projects which received funding in fiscal 

6 year 2006 above a level of $5,000,000: Provided further, 

7 That such plan shall be provided by the Administrator of 

8 the General Services Administration to the House of Rep9 resentatives and the Senate Committees on Appropriations 

10 within seven days of enactment. 

11 SEC. 3306. Notwithstanding the notice requirement of 

12 the Transportation, Treasury, Housing and Urban Devel13 opment, the Judiciary, the District of Columbia, and Inde14 pendent Agencies Appropriations Act, 2006, 119 Stat. 2509 

15 (Public Law 109–115), as continued in section 104 of the 

16 Continuing Appropriations Resolution, 2007 (Public Law 

17 110–5), the District of Columbia Courts may reallocate not 

18 more than $1,000,000 of the funds provided for fiscal year 

19 2007 under the Federal Payment to the District of Colum20 bia Courts for facilities among the items and entities funded 

21 under that heading for operations. 

22 SEC. 3307. (a) Not later than 90 days after the date 

23 of enactment of this Act, the Secretary of the Treasury, in 

24 coordination with the Securities and Exchange Commission 

25 and in consultation with the Departments of State and EnVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00333 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 ergy, shall prepare and submit to the Senate Committee on 

2 Appropriations, the House of Representatives Committee on 

3 Appropriations, the Senate Foreign Relations Committee, 

4 and the House Foreign Affairs Committee an unclassified 

5 report, suitable to be made public, that contains the names 

6 of (1) all companies trading in securities that are registered 

7 under section 12 of the Securities Exchange Act of 1934 

8 (15 U.S.C. 781) which either directly or through a parent 

9 or subsidiary company, including partly-owned subsidi10 aries, conduct business operations in Sudan relating to nat11 ural resource extraction, including oil-related activities and 

12 mining of minerals; and (2) the names of all other compa13 nies, which either directly or through a parent or subsidiary 

14 company, including partly-owned subsidiaries, conduct 

15 business operations in Sudan relating to natural resource 

16 extraction, including oil-related activities and mining of 

17 minerals. The reporting provision shall not apply to com18 panies operating under licenses from the Office of Foreign 

19 Assets Control or otherwise expressly exempted under 

20 United States law from having to obtain such licenses in 

21 order to operate in Sudan. 

22 (b) Not later than 20 days after enactment, the Sec23 retary of the Treasury shall inform the aforementioned com24 mittees of Congress of any statutory or other legal impedi25 ments to the successful completion of this report. 


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1 (c) Not later than 45 days following the submission 

2 to Congress of the list of companies conducting business op3 erations in Sudan relating to natural resource extraction 

4 required above, the General Services Administration shall 

5 determine whether the United States Government has an 

6 active contract for the procurement of goods or services with 

7 any of the identified companies, and provide notification 

8 to the appropriate committees of Congress of the companies, 

9 nature of the contract, and dollar amounts involved. 

10 (INCLUDING RESCISSION)

11 SEC. 3308. (a) Of the funds provided for the General 

12 Services Administration, ‘‘Office of Inspector General’’ in 

13 section 21061 of the Continuing Appropriations Resolution, 

14 2007 (division B of Public Law 109–289, as amended by 

15 Public Law 110–5), $8,000,000 are rescinded. 

16 (b) For an additional amount for the General Services 

17 Administration, ‘‘Office of Inspector General’’, $8,000,000, 

18 to remain available until September 30, 2008. 

19 SEC. 3309. Section 21073 of the Continuing Appro20 priations Resolution, 2007 (Public Law 110–5) is amended 

21 by adding a new subsection (j) as follows: 

22 ‘‘(j) Notwithstanding section 101, any appropriation 

23 or funds made available to the District of Columbia pursu24 ant to this division for ‘Federal Payment for Foster Care 

25 Improvement in the District of Columbia’ shall be available 

26 in accordance with an expenditure plan submitted by the 


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1 Mayor of the District of Columbia not later than 60 days 

2 after the enactment of this section which details the activi3 ties to be carried out with such Federal Payment.’’. 

4 SEC. 3310. Pursuant to section 140 of Public Law 97– 

5 92, justices and judges of the United States are authorized 

6 during fiscal year 2007 to receive a salary adjustment in 

7 accordance with section 461 of title 28, United States Code. 

8 CHAPTER 4 

9 GENERAL PROVISIONS—THIS CHAPTER 

10 SEC. 3401. Any unobligated balances remaining from 

11 prior appropriations for United States Coast Guard, ‘‘Re12 tired Pay’’ shall remain available until expended in the ac13 count and for the purposes for which the appropriations 

14 were provided, including the payment of obligations other15 wise chargeable to lapsed or current appropriations for this 

16 purpose. 

17 SEC. 3402. INTEGRATED DEEPWATER SYSTEM. (a) 

18 COMPETITION FOR ACQUISITION AND MODIFICATION OF AS19 SETS.— 

20 (1) IN GENERAL.—The Commandant of the 

21 Coast Guard shall utilize full and open competition 

22 for any contract entered into after the date of enact23 ment of this Act that provides for the acquisition or 

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1 tegrated Deepwater System Program of the Coast 

2 Guard. 

3 (2) EXCEPTIONS.—Paragraph (1) shall not 

4 apply to the following: 

5 (A) The acquisition or modification of the 

6 following asset classes for which assets of the 

7 class and related systems and components under 

8 the Integrated Deepwater System are under a 

9 contract for production: 

10 (i) National Security Cutter; 

11 (ii) Maritime Patrol Aircraft; 

12 (iii) Deepwater Command, Control, 

13 Communications, Computer, Intelligence, 

14 Surveillance, and Reconnaissance (C4ISR) 

15 System; and 

16 (iv) HC–130J Fleet Introduction. 

17 (B) The modification of any legacy asset 

18 class under the Integrated Deepwater System 

19 Program being performed by a Coast Guard en20 tity. 

21 (b) CHAIR OF PRODUCTAND OVERSIGHT TEAMS.— 

22 The Commandant of the Coast Guard shall assign an ap23 propriate officer or employee of the Coast Guard to act as 

24 chair of each of the following: 


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1 (1) Each integrated product team under the In2 tegrated Deepwater System Program. 

3 (2) Each higher-level team assigned to the over4 sight of a product team referred to in paragraph (1). 

5 (c) LIFE-CYCLE COST ESTIMATE.—The Commandant 

6 of the Coast Guard may not enter into a contract for lead 

7 asset production under the Integrated Deepwater System 

8 Program until the Commandant obtains an independent es9 timate of life-cycle costs of the asset concerned. 

10 (d) REVIEW OF ACQUISITIONS AND MAJOR DESIGN

11 CHANGES.— 

12 (1) IN GENERAL.—With the exception of assets 

13 covered under (a)(2) of this section, the Commandant 

14 of the Coast Guard may not carry out an action de15 scribed in paragraph (2) unless an independent third 

16 party with no financial interest in the development, 

17 construction, or modification of any component of the 

18 Integrated Deepwater System Program, selected by 

19 the Commandant for purposes of the subsection, deter20 mines that such action is advisable. 

21 (2) COVERED ACTIONS.—The actions described 

22 in the paragraph are as follows: 

23 (A) The acquisition or modification of an 

24 asset under the Integrated Deepwater System 

25 Program. 


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1 (B) The implementation of a major design 

2 change for an asset under the Integrated Deep3 water System Program. 

4 (e) LINKING OF AWARD FEES TO SUCCESSFUL ACQUI5 SITION OUTCOMES.—The Commandant of the Coast Guard 

6 shall require that all contracts under the Integrated Deep7 water System Program that provide award fees link such 

8 fees to successful acquisition outcomes (which shall be de9 fined in terms of cost, schedule, and performance). 

10 (f) CONTRACTUAL AGREEMENTS.— 

11 (1) IN GENERAL.—The Commandant of the 

12 Coast Guard may not award or issue any contract, 

13 task or delivery order, letter contract modification 

14 thereof, or other similar contract, for the acquisition 

15 or modification of an asset under the Integrated 

16 Deepwater System Program unless the Coast Guard 

17 and the contractor concerned have formally agreed to 

18 all terms and conditions. 

19 (2) EXCEPTION.—A contract, task or delivery 

20 order, letter contract, modification thereof, or other 

21 similar contract described in paragraph (1) may be 

22 awarded or issued if the head of contracting activity 

23 of the Coast Guard determines that a compelling need 

24 exists for the award or issue of such instrument. 


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1 (g) DESIGNATION OF TECHNICAL AUTHORITY.—The 

2 Commandant of the Coast Guard shall designate the Assist3 ant Commandant of the Coast Guard for Engineering and 

4 Logistics as the technical authority for all engineering, de5 sign, and logistics decisions pertaining to the Integrated 

6 Deepwater System Program. 

7 (h) REPORTON PERSONNEL REQUIRED FOR ACQUISI8 TION MANAGEMENT.—Not later than 30 days after the date 

9 of the enactment of this Act, the Commandant of the Coast 

10 Guard shall submit to the Committees on Appropriations 

11 of the Senate and the House of Representatives; the Com12 mittee on Commerce, Science and Transportation of the 

13 Senate; and the Committee on Transportation and Infra14 structure of the House of Representatives a report on the 

15 resources (including training, staff, and expertise) required 

16 by the Coast Guard to provide appropriate management 

17 and oversight of the Integrated Deepwater System Program. 

18 (i) COMPTROLLER GENERAL REPORTON

19 PROGRESS.—Not later than 60 days after the date of enact20 ment of this Act, the Comptroller General of the United 

21 States shall submit to the Committees on Appropriations 

22 of the Senate and the House of Representatives; the Com23 mittee on Commerce, Science and Transportation of the 

24 Senate; and the Committee on Transportation and Infra25 structure of the House of Representatives a report describing 


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1 and assessing the progress of the Coast Guard in complying 

2 with the requirements of this section. 

3 SEC. 3403. None of the funds provided in this Act or 

4 any other Act may be used to alter or reduce operations 

5 within the Civil Engineering Program of the Coast Guard 

6 nationwide, including the civil engineering units, facilities, 

7 design and construction centers, maintenance and logistics 

8 command centers, the Coast Guard Academy and the Coast 

9 Guard Research and Development Center, except as specifi10 cally authorized by a statute enacted after the date of enact11 ment of this Act. 

12 CHAPTER 5 

13 GENERAL PROVISIONS—THIS CHAPTER 

14 SEC. 3501. Section 20515 of the Continuing Appro15 priations Resolution, 2007 (division B of Public Law 109– 

16 289, as amended by Public Law 110–5) is amended by in17 serting before the period: ‘‘; and of which, not to exceed 

18 $143,628,000 shall be available for contract support costs 

19 under the terms and conditions contained in Public Law 

20 109–54’’. 

21 SEC. 3502. Section 20512 of the Continuing Appro22 priations Resolution, 2007 (division B of Public Law 109– 

23 289, as amended by Public Law 110–5) is amended by in24 serting after the first dollar amount: ‘‘, of which not to ex25 ceed $7,300,000 shall be transferred to the ‘Indian Health 


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1 Facilities’ account; the amount in the second proviso shall 

2 be $18,000,000; the amount in the third proviso shall be 

3 $525,099,000; the amount in the ninth proviso shall be 

4 $269,730,000; and the $15,000,000 allocation of funding 

5 under the eleventh proviso shall not be required’’. 

6 SEC. 3503. Section 20501 of the Continuing Appro7 priations Resolution, 2007 (division B of Public Law 109– 

8 289, as amended by Public Law 110–5) is amended by in9 serting after $55,663,000: ‘‘of which $13,000,000 shall be 

10 for Save America’s Treasures’’. 

11 SEC. 3504. Of the funds made available to the United 

12 States Fish and Wildlife Service for fiscal year 2007 under 

13 the heading ‘‘Land Acquisition’’, not to exceed $1,980,000 

14 may be used for land conservation partnerships authorized 

15 by the Highlands Conservation Act of 2004. 

16 SEC. 3505. The Administrator of the Environmental 

17 Protection Agency shall grant to the Water Environment 

18 Research Foundation (WERF) such sums as were directed 

19 in fiscal year 2005 and fiscal year 2006 for the On-Farm 

20 Assessment and Environmental Review program: Provided, 

21 That not less than 95 percent of funds made available shall 

22 be used by WERF to award competitively a contract to per23 form the program’s environmental assessments: Provided 

24 further, That WERF shall not retain more than 5 percent 

25 of such sums for administrative expenses. 


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1 SEC. 3506. In providing any grants for small and 

2 rural community technical and compliance assistance 

3 under the Fiscal Year 2007 Operating Plan of the Environ4 mental Protection Agency, the Administrator of the Envi5 ronmental Protection Agency shall give priority to small 

6 systems and qualified (as determined by the Administrator) 

7 organizations that have the most need (or a majority of 

8 need) from small communities in each State. 

9 CHAPTER 6 

10 DEPARTMENT OF HEALTH AND HUMAN 

11 SERVICES 

12 NATIONAL INSTITUTES OF HEALTH

13 NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS

14 DISEASES

15 (TRANSFER OF FUNDS)

16 Of the amount provided by the Continuing Appropria17 tions Resolution, 2007 for ‘‘National Institute of Allergy 

18 and Infectious Diseases’’, $49,500,000 shall be transferred 

19 to ‘‘Public Health and Social Services Emergency Fund’’ 

20 to carry out activities relating to advanced research and 

21 development as provided by section 319L of the Public 

22 Health Service Act. 

23 GENERAL PROVISIONS—THIS CHAPTER 

24 (TRANSFER OF FUNDS)

25 SEC. 3601. Section 20602 of the Continuing Appro26 priations Resolution, 2007 (division B of Public Law 109– 


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1 289, as amended by Public Law 110–5) is amended by in2 serting the following after ‘‘$5,000,000’’: ‘‘(together with an 

3 additional $7,000,000 which shall be transferred by the 

4 Pension Benefit Guaranty Corporation as an authorized 

5 administrative cost)’’. 

6 SEC. 3602. Section 20625(b)(1) of the Continuing Ap7 propriations Resolution, 2007 (division B of Public Law 

8 109–289, as amended by Public Law 110–5) is amended 

9 by— 

10 (1) striking ‘‘$7,172,994,000’’ and inserting 

11 ‘‘$7,176,431,000’’; 

12 (2) amending subparagraph (A) to read as fol13 lows: 

14 ‘‘(A) $5,454,824,000 shall be for basic 

15 grants under section 1124 of the Elementary and 

16 Secondary Education Act of 1965 (ESEA), of 

17 which up to $3,437,000 shall be available to the 

18 Secretary of Education on October 1, 2006, to 

19 obtain annually updated educational-agency20 level census poverty data from the Bureau of the 

21 Census;’’; and 

22 (3) amending subparagraph (C) to read as fol23 lows: 

24 ‘‘(C) not to exceed $2,352,000 may be avail25 able for section 1608 of the ESEA and for a 


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1 clearinghouse on comprehensive school reform 

2 under part D of title V of the ESEA;’’. 

3 SEC. 3603. (a) From the amounts available for De4 partment of Education, Safe Schools and Citizenship Edu5 cation as provided by the Continuing Appropriations Reso6 lution, 2007, $321,500,000 shall be available for Safe and 

7 Drug-Free Schools State Grants and $247,335,000 shall be 

8 available for Safe and Drug-Free Schools National Pro9 grams. 

10 (b) Of the amount available for Safe and Drug-Free 

11 National Programs, not less than $25,000,000 shall be for 

12 competitive grants to local educational agencies to address 

13 youth violence and related issues. 

14 (c) The competition under subsection (b) shall be lim15 ited to local educational agencies that operate schools cur16 rently identified as persistently dangerous under section 

17 9532 of the Elementary and Secondary Education Act of 

18 1965. 

19 SEC. 3604. The provision in the first proviso under 

20 the heading ‘‘Rehabilitation Services and Disability Re21 search’’ in the Department of Education Appropriations 

22 Act, 2006, relating to alternative financing programs under 

23 section 4(b)(2)(D) of the Assistive Technology Act of 1998 

24 shall not apply to funds appropriated by the Continuing 

25 Appropriations Resolution, 2007. 


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1 (TRANSFER OF FUNDS)

2 SEC. 3605. Notwithstanding sections 20639 and 20640 

3 of the Continuing Appropriations Resolution, 2007, as 

4 amended by section 2 of the Revised Continuing Appropria5 tions Resolution, 2007 (Public Law 110–5), the Chief Exec6 utive Officer of the Corporation for National and Commu7 nity Service may transfer an amount of not more than 

8 $1,360,000 from the account under the heading ‘‘National 

9 and Community Service Programs, Operating Expenses’’ 

10 under the heading ‘‘Corporation for National and Commu11 nity Service’’, to the account under the heading ‘‘Salaries 

12 and Expenses’’ under the heading ‘‘Corporation for Na13 tional and Community Service’’. 

14 SEC. 3606. Section 1310.12(a) of title 45 of the Code 

15 of Federal Regulations (October 1, 2004) shall be effective 

16 30 days after enactment of this Act except that any vehicles 

17 in use to transport Head Start children as of January 1, 

18 2007, shall not be subject to a requirement under that part 

19 regarding rear emergency exit doors for two years after the 

20 date of enactment. 

21 The Secretary of Health and Human Services shall re22 vise the allowable alternate vehicle standards described in 

23 that part 1310 (or any corresponding similar regulation 

24 or ruling) to exempt from Federal seat spacing require25 ments and supporting seating requirements related to 


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1 compartmentalization any vehicle used to transport chil2 dren for a Head Start program if the vehicle meets federal 

3 motor vehicle safety standards for seating systems, occupant 

4 crash protection, seat belt assemblies, and child restraint 

5 anchorage systems consistent with that part 1310 (or any 

6 corresponding similar regulation or ruling). Such revision 

7 shall be made in a manner consistent with the findings of 

8 the National Highway Traffic Safety Administration, pur9 suant to its study on occupant protection on Head Start 

10 transit vehicles, related to the Government Accountability 

11 Office report GAO–06–767R. 

12 (INCLUDING RESCISSION)

13 SEC. 3607. (a) From the amounts made available by 

14 the Continuing Appropriations Resolution, 2007 (Public 

15 Law 109–289, as amended by the Revised Continuing Ap16 propriations Resolution, 2007 (Public Law 110–5)) for the 

17 Office of the Secretary, General Departmental Management 

18 under the Department of Health and Human Services, 

19 $1,000,000 are rescinded. 

20 (b) For the activities carried out by the Secretary of 

21 Education under section 3(a) of Public Law 108–406 (42 

22 U.S.C. 15001 note), $1,000,000. 

23 (INCLUDING RESCISSION)

24 SEC. 3608. (a) From the amounts made available by 

25 the Continuing Appropriations Resolution, 2007 for ‘‘DeVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00347 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 partment of Education, Student Aid Administration’’, 

2 $2,000,000 are rescinded. 

3 (b) For an additional amount for ‘‘Department of 

4 Education, Higher Education’’ under part B of title VII 

5 of the Higher Education Act of 1965 which shall be used 

6 to make a grant to the University of Vermont for the Edu7 cational Excellence Program, $2,000,000. 

8 SEC. 3609. Section 1820 of the Social Security Act (42 

9 U.S.C. 1395i–4) is amended— 

10 (1) by redesignating subsection (j) as subsection 

11 (k); and 

12 (2) by inserting after subsection (i) the following 

13 new subsection: 

14 ‘‘(j) DELTA HEALTH INITIATIVE.— 

15 ‘‘(1) IN GENERAL.—The Secretary is authorized 

16 to award a grant to the Delta Health Alliance, a non17 profit alliance of academic institutions in the Mis18 sissippi Delta region, to solicit and fund proposals 

19 from local governments, hospitals, health care clinics, 

20 academic institutions, and rural public health-related 

21 entities and organizations for research development, 

22 educational programs, health care services, job train23 ing, planning, construction, and the equipment of 

24 public health-related facilities in the Mississippi 

25 Delta region. 


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1 ‘‘(2) FEDERAL INTEREST IN PROPERTY.—With 

2 respect to funds used under this subsection for con3 struction or alteration of property, the Federal inter4 est in the property shall last for a period of 1 year 

5 following completion or until the Federal Government 

6 is compensated for its proportionate interest in the 

7 property if the property use changes or the property 

8 is transferred or sold, whichever time period is less. 

9 At the conclusion of such period, the Notice of Federal 

10 Interest in such property shall be removed. 

11 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated such sums as 

13 may be necessary to carry out this subsection in fiscal 

14 year 2007 and in each of the five succeeding fiscal 

15 years.’’. 

16 SEC. 3610. Not withstanding any other provision of 

17 this Act, section 3608(b) of this Act shall not take effect. 

18 CHAPTER 7 

19 GENERAL PROVISIONS—THIS CHAPTER 

20 SEC. 3701. Section 2(c) of the Legislative Branch Ap21 propriations Act, 1993 (2 U.S.C. 121d(c)) is amended by 

22 adding at the end the following: 

23 ‘‘(3) The Secretary of the Senate may transfer 

24 from the fund to the Senate Employee Child Care 

25 Center proceeds from the sale of holiday ornaments by 


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1 the Senate Gift Shop for the purpose of funding nec2 essary activities and expenses of the Center, including 

3 scholarships, educational supplies, and equipment.’’. 

4 (INCLUDING RESCISSION)

5 SEC. 3702. (a) Of the funds provided for the ‘‘Capitol 

6 Guide Service and Special Services Office’’ in section 

7 20703(a) of the Continuing Appropriations Resolution, 

8 2007 (as added by section 2 of the Revised Continuing Ap9 propriations Resolution, 2007 (Public Law 110–5)), 

10 $3,500,000 are rescinded. 

11 (b) For an additional amount for ‘‘Capitol Guide 

12 Service and Special Services Office’’, $3,500,000, to remain 

13 available until September 30, 2008. 

14 CHAPTER 8 

15 GENERAL PROVISION—THIS CHAPTER 

16 SEC. 3801. Notwithstanding any other provision of 

17 law, appropriations made by Public Law 110–5, or any 

18 other Act, which the Secretary of Veterans Affairs contrib19 utes to the Department of Defense/Department of Veterans 

20 Affairs Health Care Sharing Incentive Fund under the au21 thority of section 8111(d) of title 38, United States Code, 

22 shall remain available until expended for any purpose au23 thorized by section 8111 of title 38, United States Code. 


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1 CHAPTER 9 

2 GENERAL PROVISIONS—THIS CHAPTER 

3 CONSULTATION REQUIREMENT

4 SEC. 3901. Of the funds provided in the Revised Con5 tinuing Appropriations Resolution, 2007 (Public Law 110– 

6 5) for the United States-China Economic and Security Re7 view Commission, $1,000,000 shall be available for obliga8 tion only in accordance with a spending plan submitted 

9 to and approved by the Committees on Appropriations 

10 which addresses the recommendations of the Government 

11 Accountability Office’s audit of the Commission. 

12 TECHNICAL AMENDMENT

13 SEC. 3902. (a) Notwithstanding any other provision 

14 of law, subsection (c) under the heading ‘‘Assistance for the 

15 Independent States of the Former Soviet Union’’ in Public 

16 Law 109–102, shall not apply to funds appropriated by the 

17 Continuing Appropriations Resolution, 2007 (Public Law 

18 109–289, division B) as amended by Public Laws 109–369, 

19 109–383, and 110–5. 

20 (b) Section 534(k) of the Foreign Operations, Export 

21 Financing, and Related Programs Appropriations Act, 

22 2006 (Public Law 109–102) is amended, in the second pro23 viso, by inserting after ‘‘subsection (b) of that section’’ the 

24 following: ‘‘and the requirement that a majority of the 

25 members of the board of directors be United States citizens 

26 provided in subsection (d)(3)(B) of that section’’. 


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1 (c) Subject to section 101(c)(2) of the Continuing Ap2 propriations Resolution, 2007 (division B of Public Law 

3 109–289, as amended by Public Law 110–5), the amount 

4 of funds appropriated for ‘‘Foreign Military Financing 

5 Program’’ pursuant to such Resolution shall be construed 

6 to be the total of the amount appropriated for such program 

7 by section 20401 of that Resolution and the amount made 

8 available for such program by section 591 of the Foreign 

9 Operations, Export Financing, and Related Programs Ap10 propriations Act, 2006 (Public Law 109–102) which is 

11 made applicable to the fiscal year 2007 by the provisions 

12 of such Resolution. 

13 CHAPTER 10 

14 DEPARTMENT OF HOUSING AND URBAN 

15 DEVELOPMENT 

16 OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

17 SALARIES AND EXPENSES

18 (INCLUDING TRANSFER OF FUNDS)

19 For an additional amount to carry out the Federal 

20 Housing Enterprises Financial Safety and Soundness Act 

21 of 1992, $4,800,000, to remain available until expended, to 

22 be derived from the Federal Housing Enterprises Oversight 

23 Fund and to be subject to the same terms and conditions 

24 pertaining to funds provided under this heading in Public 

25 Law 109–115: Provided, That not to exceed the total 

26 amount provided for these activities for fiscal year 2007 


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1 shall be available from the general fund of the Treasury to 

2 the extent necessary to incur obligations and make expendi3 tures pending the receipt of collections to the Fund: Pro4 vided further, That the general fund amount shall be re5 duced as collections are received during the fiscal year so 

6 as to result in a final appropriation from the general fund 

7 estimated at not more than $0. 

8 GENERAL PROVISIONS—THIS CHAPTER 

9 SEC. 4001. Hereafter, funds limited or appropriated 

10 for the Department of Transportation may be obligated or 

11 expended to grant authority to a Mexican motor carrier to 

12 operate beyond United States municipalities and commer13 cial zones on the United States-Mexico border only to the 

14 extent that— 

15 (1) granting such authority is first tested as part 

16 of a pilot program; 

17 (2) such pilot program complies with the re18 quirements of section 350 of Public Law 107–87 and 

19 the requirements of section 31315(c) of title 49, 

20 United States Code, related to pilot programs; and 

21 (3) simultaneous and comparable authority to 

22 operate within Mexico is made available to motor car23 riers domiciled in the United States. 

24 SEC. 4002. Section 21033 of the Continuing Appro25 priations Resolution, 2007 (division B of Public Law 109– 


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1 289, as amended by Public Law 110–5) is amended by add2 ing after the second proviso: ‘‘: Provided further, That para3 graph (2) under such heading in Public Law 109–115 (119 

4 Stat. 2441) shall be funded at $149,300,000, but additional 

5 section 8 tenant protection rental assistance costs may be 

6 funded in 2007 by using unobligated balances, notwith7 standing the purposes for which such amounts were appro8 priated, including recaptures and carryover, remaining 

9 from funds appropriated to the Department of Housing and 

10 Urban Development under this heading, the heading ‘‘An11 nual Contributions for Assisted Housing’’, the heading 

12 ‘‘Housing Certificate Fund’’, and the heading ‘‘Project13 Based Rental Assistance’’ for fiscal year 2006 and prior 

14 fiscal years: Provided further, That paragraph (3) under 

15 such heading in Public Law 109–115 (119 Stat. 2441) shall 

16 be funded at $47,500,000: Provided further, That para17 graph (4) under such heading in Public Law 109–115 (119 

18 Stat. 2441) shall be funded at $5,900,000: Provided further, 

19 That paragraph (5) under such heading in Public Law 

20 109–115 (119 Stat. 2441) shall be funded at 

21 $1,281,100,000, of which $1,251,100,000 shall be allocated 

22 for the calendar year 2007 funding cycle on a pro rata basis 

23 to public housing agencies based on the amount public hous24 ing agencies were eligible to receive in calendar year 2006, 

25 and of which up to $30,000,000 shall be available to the 


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1 Secretary to allocate to public housing agencies that need 

2 additional funds to administer their section 8 programs, 

3 with up to $20,000,000 to be for fees associated with section 

4 8 tenant protection rental assistance’’. 

5 SEC. 4003. The dates for subsidy reductions and dem6 onstrations for discontinuance of reductions in operating 

7 subsidy under the new operating fund formula, pursuant 

8 to HUD regulations at 24 CFR 990.230, shall be moved 

9 forward so that the first demonstration date for asset man10 agement compliance shall be September 1, 2007, and reduc11 tions in subsidy for calendar year 2007 shall be limited 

12 to the 5 percent amount referred to in such regulations. Any 

13 public housing agency that has filed information to dem14 onstrate compliance on or prior to April 15, 2007 shall be 

15 permitted to re-file the same or different information to 

16 demonstrate such compliance on or before September 1, 

17 2007. 

18 CHAPTER 11 

19 GENERAL PROVISIONS—THIS ACT 

20 AVAILABILITY OF FUNDS

21 SEC. 4101. No part of any appropriation contained 

22 in this Act shall remain available for obligation beyond the 

23 current fiscal year unless expressly so provided herein. 

24 EMERGENCY DESIGNATION FOR TITLE I

25 SEC. 4102. Amounts provided in title I of this Act are 

26 designated as emergency requirements pursuant to section 


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1 402 of H. Con. Res. 95 (109th Congress), the concurrent 

2 resolution on the budget for fiscal year 2006. 

3 EMERGENCY DESIGNATION FOR TITLE II

4 SEC. 4103. Amounts provided in title II of this Act 

5 are designated as emergency requirements pursuant to sec6 tion 402 of H. Con. Res. 95 (109th Congress), the concur7 rent resolution on the budget for fiscal year 2006. 

8 TITLE IV—EMERGENCY FARM 

9 RELIEF 

10 SEC. 401. SHORT TITLE. 

11 This title may be cited as the ‘‘Emergency Farm Relief 

12 Act of 2007’’. 

13 SEC. 402. DEFINITIONS. 

14 In this title: 

15 (1) ADDITIONAL COVERAGE.—The term ‘‘addi16 tional coverage’’ has the meaning given the term in 

17 section 502(b)(1) of the Federal Crop Insurance Act 

18 (7 U.S.C. 1502(b)(1)). 

19 (2) APPLICABLE CROP.—The term ‘‘applicable 

20 crop’’ means 1 or more crops planted, or prevented 

21 from being planted, during, as elected by the pro22 ducers on a farm, 1 of— 

23 (A) the 2005 crop year; 

24 (B) the 2006 crop year; or 


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1 (C) that part of the 2007 crop year that 

2 takes place before the end of the applicable pe3 riod. 

4 (3) APPLICABLE PERIOD.—The term ‘‘applicable 

5 period’’ means the period beginning on January 1, 

6 2005 and ending on February 28, 2007. 

7 (4) DISASTER COUNTY.—The term ‘‘disaster 

8 county’’ means— 

9 (A) a county included in the geographic 

10 area covered by a natural disaster declaration; 

11 and 

12 (B) each county contiguous to a county de13 scribed in subparagraph (A). 

14 (5) HURRICANE-AFFECTED COUNTY.—The term 

15 ‘‘hurricane-affected county’’ means— 

16 (A) a county included in the geographic 

17 area covered by a natural disaster declaration 

18 related to Hurricane Katrina, Hurricane Rita, 

19 Hurricane Wilma, or a related condition; and 

20 (B) each county contiguous to a county de21 scribed in subparagraph (A). 

22 (6) INSURABLE COMMODITY.—The term ‘‘insur23 able commodity’’ means an agricultural commodity 

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1 ance under the Federal Crop Insurance Act (7 U.S.C. 

2 1501 et seq.). 

3 (7) LIVESTOCK.—The term ‘‘livestock’’ in4 cludes— 

5 (A) cattle (including dairy cattle); 

6 (B) bison; 

7 (C) poultry; 

8 (D) sheep; 

9 (E) swine; and 

10 (F) other livestock, as determined by the 

11 Secretary. 

12 (8) NATURAL DISASTER DECLARATION.—The 

13 term ‘‘natural disaster declaration’’ means a natural 

14 disaster declared by the Secretary during the applica15 ble period under section 321(a) of the Consolidated 

16 Farm and Rural Development Act (7 U.S.C. 

17 1961(a)). 

18 (9) NONINSURABLE COMMODITY.—The term 

19 ‘‘noninsurable commodity’’ means a crop for which 

20 the producers on a farm are eligible to obtain assist21 ance under section 196 of the Federal Agriculture Im22 provement and Reform Act of 1996 (7 U.S.C. 7333). 

23 (10) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Agriculture. 


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1 Subtitle A—Agricultural 

2 Production Losses 

3 SEC. 411. CROP DISASTER ASSISTANCE. 

4 (a) IN GENERAL.—The Secretary shall use such sums 

5 as are necessary of funds of the Commodity Credit Corpora6 tion to make emergency financial assistance authorized 

7 under this section available to producers on a farm that 

8 have incurred qualifying losses described in subsection (c). 

9 (b) ADMINISTRATION.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the Secretary shall make assistance avail12 able under this section in the same manner as pro13 vided under section 815 of the Agriculture, Rural De14 velopment, Food and Drug Administration and Re15 lated Agencies Appropriations Act, 2001 (Public Law 

16 106–387; 114 Stat. 1549A–55), including using the 

17 same loss thresholds for quantity and economic losses 

18 as were used in administering that section, except 

19 that the payment rate shall be 55 percent of the estab20 lished price, instead of 65 percent. 

21 (2) NONINSURED PRODUCERS.—For producers 

22 on a farm that were eligible to acquire crop insurance 

23 for the applicable production loss and failed to do so 

24 or failed to submit an application for the noninsured 

25 assistance program for the loss, the Secretary shall 


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1 make assistance in accordance with paragraph (1), 

2 except that the payment rate shall be 20 percent of the 

3 established price, instead of 50 percent. 

4 (c) QUALIFYING LOSSES.—Assistance under this sec5 tion shall be made available to producers on farms, other 

6 than producers of sugar beets, that incurred qualifying 

7 quantity or quality losses for the applicable crop due to 

8 damaging weather or any related condition (including 

9 losses due to crop diseases, insects, and delayed harvest), 

10 as determined by the Secretary. 

11 (d) QUALITY LOSSES.— 

12 (1) IN GENERAL.—In addition to any payment 

13 received under subsection (b), the Secretary shall use 

14 such sums as are necessary of funds of the Commodity 

15 Credit Corporation to make payments to producers on 

16 a farm described in subsection (a) that incurred a 

17 quality loss for the applicable crop of a commodity in 

18 an amount equal to the product obtained by multi19 plying— 

20 (A) the payment quantity determined under 

21 paragraph (2); 

22 (B)(i) in the case of an insurable com23 modity, the coverage level elected by the insured 

24 under the policy or plan of insurance under the 


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1 Federal Crop Insurance Act (7 U.S.C. 1501 et 

2 seq.); or 

3 (ii) in the case of a noninsurable com4 modity, the applicable coverage level for the pay5 ment quantity determined under paragraph (2); 

6 by 

7 (C) 55 percent of the payment rate deter8 mined under paragraph (3). 

9 (2) PAYMENT QUANTITY.—For the purpose of 

10 paragraph (1)(A), the payment quantity for quality 

11 losses for a crop of a commodity on a farm shall 

12 equal the lesser of— 

13 (A) the actual production of the crop af14 fected by a quality loss of the commodity on the 

15 farm; or 

16 (B)(i) in the case of an insurable com17 modity, the actual production history for the 

18 commodity by the producers on the farm under 

19 the Federal Crop Insurance Act (7 U.S.C. 1501 

20 et seq.); or 

21 (ii) in the case of a noninsurable com22 modity, the established yield for the crop for the 

23 producers on the farm under section 196 of the 

24 Federal Agriculture Improvement and Reform 

25 Act of 1996 (7 U.S.C. 7333). 


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1 (3) PAYMENTRATE.— 

2 (A) IN GENERAL.—For the purpose of para3 graph (1)(B), the payment rate for quality losses 

4 for a crop of a commodity on a farm shall be 

5 equal to the difference between (as determined by 

6 the applicable State committee of the Farm Serv7 ice Agency)— 

8 (i) the per unit market value that the 

9 units of the crop affected by the quality loss 

10 would have had if the crop had not suffered 

11 a quality loss; and 

12 (ii) the per unit market value of the 

13 units of the crop affected by the quality loss. 

14 (B) FACTORS.—In determining the pay15 ment rate for quality losses for a crop of a com16 modity on a farm, the applicable State com17 mittee of the Farm Service Agency shall take 

18 into account— 

19 (i) the average local market quality 

20 discounts that purchasers applied to the 

21 commodity during the first 2 months fol22 lowing the normal harvest period for the 

23 commodity; 

24 (ii) the loan rate and repayment rate 

25 established for the commodity under the 


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1 marketing loan program established for the 

2 commodity under subtitle B of title I of the 

3 Farm Security and Rural Investment Act of 

4 2002 (7 U.S.C. 7931 et seq.); 

5 (iii) the market value of the commodity 

6 if sold into a secondary market; and 

7 (iv) other factors determined appro8 priate by the committee. 

9 (4) ELIGIBILITY.— 

10 (A) IN GENERAL.—For producers on a farm 

11 to be eligible to obtain a payment for a quality 

12 loss for a crop under this subsection— 

13 (i) the amount obtained by multi14 plying the per unit loss determined under 

15 paragraph (1) by the number of units af16 fected by the quality loss shall be reduced by 

17 the amount of any indemnification received 

18 by the producers on the farm for quality 

19 loss adjustment for the commodity under a 

20 policy or plan of insurance under the Fed21 eral Crop Insurance Act (7 U.S.C. 1501 et 

22 seq.); and 

23 (ii) the remainder shall be at least 25 

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1 tion of the crop would have had if the crop 

2 had not suffered a quality loss. 

3 (B) INELIGIBILITY.—If the amount of a 

4 quality loss payment for a commodity for the 

5 producers on a farm determined under this 

6 paragraph is equal to or less than zero, the pro7 ducers on the farm shall be ineligible for assist8 ance for the commodity under this subsection. 

9 (5) ELIGIBLE PRODUCTION.—The Secretary shall 

10 carry out this subsection in a fair and equitable man11 ner for all eligible production, including the produc12 tion of fruits and vegetables, other specialty crops, 

13 and field crops. 

14 (e) ELECTION OF CROP YEAR.—If a producer incurred 

15 qualifying crop losses in more than 1 of the crop years dur16 ing the applicable period, the producers on a farm shall 

17 elect to receive assistance under this section for losses in18 curred in only 1 of the crop years. 

19 (f) PAYMENT LIMITATION.— 

20 (1) LIMITATION.—Assistance provided under this 

21 section to the producers on a farm for losses to a crop, 

22 together with the amounts specified in paragraph (2) 

23 applicable to the same crop, may not exceed 95 per24 cent of what the value of the crop would have been in 


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1 the absence of the losses, as estimated by the Sec2 retary. 

3 (2) OTHER PAYMENTS.—In applying the limita4 tion in paragraph (1), the Secretary shall include the 

5 following: 

6 (A) Any crop insurance payment made 

7 under the Federal Crop Insurance Act (7 U.S.C. 

8 1501 et seq.) or payment under section 196 of the 

9 Federal Agricultural Improvement and Reform 

10 Act of 1996 (7 U.S.C. 7333) that the producers 

11 on the farm receive for losses to the same crop. 

12 (B) The value of the crop that was not lost 

13 (if any), as estimated by the Secretary. 

14 (g) TIMING.— 

15 (1) IN GENERAL.—Subject to paragraph (2), the 

16 Secretary shall make payments to producers on a 

17 farm for a crop under this section not later than 60 

18 days after the date the producers on the farm submit 

19 to the Secretary a completed application for the pay20 ments. 

21 (2) INTEREST.—If the Secretary does not make 

22 payments to the producers on a farm by the date de23 scribed in paragraph (1), the Secretary shall pay to 

24 the producers on a farm interest on the payments at 

25 a rate equal to the current (as of the sign-up deadline 


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1 established by the Secretary) market yield on out2 standing, marketable obligations of the United States 

3 with maturities of 30 years. 

4 SEC. 412. DAIRY ASSISTANCE. 

5 The Secretary shall use $95,000,000 of funds of the 

6 Commodity Credit Corporation to make payments to dairy 

7 producers for dairy production losses in disaster counties. 

8 SEC. 413. MILK INCOME LOSS CONTRACT PROGRAM. 

9 Section 1502(c)(3) of the Farm Security and Rural 

10 Investment Act of 2002 (7 U.S.C. 7982(c)(3)) is amended— 

11 (1) in subparagraph (A), by adding ‘‘and’’ at the 

12 end; 

13 (2) in subparagraph (B), by striking ‘‘August’’ 

14 and all that follows through the end and inserting 

15 ‘‘September 30, 2007, 34 percent.’’; and 

16 (3) by striking subparagraph (C). 

17 SEC. 414. LIVESTOCK ASSISTANCE. 

18 (a) LIVESTOCK COMPENSATION PROGRAM.— 

19 (1) USE OF COMMODITY CREDIT CORPORATION

20 FUNDS.—Effective beginning on the date of enactment 

21 of this Act, the Secretary shall use funds of the Com22 modity Credit Corporation to carry out the 2002 

23 Livestock Compensation Program announced by the 

24 Secretary on October 10, 2002 (67 Fed. Reg. 63070), 

25 to provide compensation for livestock losses during the 


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1 applicable period for losses (including losses due to 

2 blizzards that began in calendar year 2006 and con3 tinued in January 2007) due to a disaster, as deter4 mined by the Secretary, except that the payment rate 

5 shall be 80 percent of the payment rate established for 

6 the 2002 Livestock Compensation Program. 

7 (2) ELIGIBLE APPLICANTS.—In carrying out the 

8 program described in paragraph (1), the Secretary 

9 shall provide assistance to any applicant for livestock 

10 losses during the applicable period that— 

11 (A)(i) conducts a livestock operation that is 

12 located in a disaster county, including any ap13 plicant conducting a livestock operation with eli14 gible livestock (within the meaning of the live15 stock assistance program under section 101(b) of 

16 division B of Public Law 108–324 (118 Stat. 

17 1234)); or 

18 (ii) produces an animal described in section 

19 10806(a)(1) of the Farm Security and Rural In20 vestment Act of 2002 (21 U.S.C. 321d(a)(1)); 

21 (B) demonstrates to the Secretary that the 

22 applicant suffered a material loss of pasture or 

23 hay production, or experienced substantially in24 creased feed costs, due to damaging weather or a 


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1 related condition during the calendar year, as 

2 determined by the Secretary; and 

3 (C) meets all other eligibility requirements 

4 established by the Secretary for the program. 

5 (3) MITIGATION.—In determining the eligibility 

6 for or amount of payments for which a producer is 

7 eligible under the livestock compensation program, the 

8 Secretary shall not penalize a producer that takes ac9 tions (recognizing disaster conditions) that reduce the 

10 average number of livestock the producer owned for 

11 grazing during the production year for which assist12 ance is being provided. 

13 (4) PAYMENTS FOR REDUCTION IN GRAZING ON

14 FEDERAL LAND.— 

15 (A) IN GENERAL.—In carrying out this sub16 section, the Secretary shall make payments to 

17 livestock producers that are in proportion to any 

18 reduction during calendar year 2007 in grazing 

19 on Federal land in a disaster county leased by 

20 the producers a result of actions described in 

21 subparagraph (B). 

22 (B) FEDERAL ACTIONS.—Actions referred to 

23 in subparagraph (A) are actions taken during 

24 calendar year 2007 by the Bureau of Land Man25 agement or other Federal agency to restrict or 


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1 prohibit grazing otherwise allowed under the 

2 terms of the lease of the producers in order to ex3 pedite the recovery of the Federal land from 

4 drought, wildfire, or other natural disaster de5 clared by the Secretary during the applicable pe6 riod. 

7 (5) LIMITATION.—The Secretary shall ensure, to 

8 the maximum extent practicable, that producers on a 

9 farm do not receive duplicative payments under this 

10 subsection and another Federal program with respect 

11 to any loss. 

12 (b) LIVESTOCK INDEMNITY PAYMENTS.— 

13 (1) IN GENERAL.—The Secretary shall use such 

14 sums as are necessary of funds of the Commodity 

15 Credit Corporation to make livestock indemnity pay16 ments to producers on farms that have incurred live17 stock losses during the applicable period (including 

18 losses due to blizzards that began in calendar year 

19 2006 and continued in January 2007) due to a dis20 aster, as determined by the Secretary, including losses 

21 due to hurricanes, floods, anthrax, wildfires, and ex22 treme heat. 

23 (2) PAYMENTRATES.—Indemnity payments to a 

24 producer on a farm under paragraph (1) shall be 

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1 ket value of the applicable livestock on the day before 

2 the date of death of the livestock, as determined by the 

3 Secretary. 

4 (c) EWE LAMB REPLACEMENTAND RETENTION.— 

5 (1) IN GENERAL.—The Secretary shall use 

6 $13,000,000 of funds of the Commodity Credit Cor7 poration to make payments to producers located in 

8 disaster counties under the Ewe Lamb Replacement 

9 and Retention Payment Program under part 784 of 

10 title 7, Code of Federal Regulations (or a successor 

11 regulation) for each qualifying ewe lamb retained or 

12 purchased during the period beginning on January 1, 

13 2006, and ending on December 31, 2006, by the pro14 ducers. 

15 (2) INELIGIBILITY FOR OTHER ASSISTANCE.—A 

16 producer that receives assistance under this subsection 

17 shall not be eligible to receive assistance under sub18 section (a). 

19 (d) ELECTION OF PRODUCTION YEAR.—If a producer 

20 incurred qualifying production losses in more than one of 

21 the production years, the producers on a farm shall elect 

22 to receive assistance under this section in only one of the 

23 production years. 

24 (e) EXCEPTION.—Notwithstanding any other provision 

25 of this section, livestock producers on a farm shall be eligible 


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1 to receive assistance under subsection (a) or livestock in2 demnity payments under subsection (b) if the producers on 

3 a farm— 

4 (1) have livestock operations in a county in5 cluded in the geographic area covered by a major dis6 aster or emergency designated by the President under 

7 the Robert T. Stafford Disaster Relief and Emergency 

8 Assistance Act (42 U.S.C. 5121 et seq.) due to bliz9 zards, ice storms, or other winter–related causes dur10 ing the period of December 2006 through January 

11 2007; and 

12 (2) meet all eligibility requirements for the as13 sistance or payments other than the requirements re14 lating to disaster declarations by the Secretary under 

15 subsections (a) and (b)(1). 

16 SEC. 415. FLOODED CROP AND GRAZING LAND. 

17 (a) IN GENERAL.—The Secretary shall compensate eli18 gible owners of flooded crop and grazing land in the State 

19 of North Dakota. 

20 (b) ELIGIBILITY.— 

21 (1) IN GENERAL.—To be eligible to receive com22 pensation under this section, an owner shall own land 

23 described in subsection (a) that, during the 2 crop 

24 years preceding receipt of compensation, was rendered 

25 incapable of use for the production of an agricultural 


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1 commodity or for grazing purposes (in a manner con2 sistent with the historical use of the land) as the re3 sult of flooding, as determined by the Secretary. 

4 (2) INCLUSIONS.—Land described in paragraph 

5 (1) shall include— 

6 (A) land that has been flooded; 

7 (B) land that has been rendered inaccessible 

8 due to flooding; and 

9 (C) a reasonable buffer strip adjoining the 

10 flooded land, as determined by the Secretary. 

11 (3) ADMINISTRATION.—The Secretary may estab12 lish— 

13 (A) reasonable minimum acreage levels for 

14 individual parcels of land for which owners may 

15 receive compensation under this section; and 

16 (B) the location and area of adjoining 

17 flooded land for which owners may receive com18 pensation under this section. 

19 (c) SIGN-UP.—The Secretary shall establish a sign-up 

20 program for eligible owners to apply for compensation from 

21 the Secretary under this section. 

22 (d) COMPENSATION PAYMENTS.— 

23 (1) IN GENERAL.—Subject to paragraphs (2) and 

24 (3), the rate of an annual compensation payment 

25 under this section shall be equal to 90 percent of the 


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1 average annual per acre rental payment rate (at the 

2 time of entry into the contract) for comparable crop 

3 or grazing land that has not been flooded and re4 mains in production in the county where the flooded 

5 land is located, as determined by the Secretary. 

6 (2) REDUCTION.—An annual compensation pay7 ment under this section shall be reduced by the 

8 amount of any conservation program rental payments 

9 or Federal agricultural commodity program pay10 ments received by the owner for the land during any 

11 crop year for which compensation is received under 

12 this section. 

13 (3) EXCLUSION.—During any year in which an 

14 owner receives compensation for flooded land under 

15 this section, the owner shall not be eligible to partici16 pate in or receive benefits for the flooded land 

17 under— 

18 (A) the Federal crop insurance program es19 tablished under the Federal Crop Insurance Act 

20 (7 U.S.C. 1501 et seq.); 

21 (B) the noninsured crop assistance program 

22 established under section 196 of the Federal Ag23 riculture Improvement and Reform Act of 1996 

24 (7 U.S.C. 7333); or 


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1 (C) any Federal agricultural crop disaster 

2 assistance program. 

3 (e) RELATIONSHIP TO AGRICULTURAL COMMODITY

4 PROGRAMS.—The Secretary, by regulation, shall provide 

5 for the preservation of cropland base, allotment history, and 

6 payment yields applicable to land described in subsection 

7 (a) that was rendered incapable of use for the production 

8 of an agricultural commodity or for grazing purposes as 

9 the result of flooding. 

10 (f) USE OF LAND.— 

11 (1) IN GENERAL.—An owner that receives com12 pensation under this section for flooded land shall 

13 take such actions as are necessary to not degrade any 

14 wildlife habitat on the land that has naturally devel15 oped as a result of the flooding. 

16 (2) RECREATIONAL ACTIVITIES.—To encourage 

17 owners that receive compensation for flooded land to 

18 allow public access to and use of the land for rec19 reational activities, as determined by the Secretary, 

20 the Secretary may— 

21 (A) offer an eligible owner additional com22 pensation; and 

23 (B) provide compensation for additional 

24 acreage under this section. 

25 (g) FUNDING.— 


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1 (1) IN GENERAL.—The Secretary shall use 

2 $6,000,000 of funds of the Commodity Credit Cor3 poration to carry out this section. 

4 (2) PRO-RATED PAYMENTS.—In a case in which 

5 the amount made available under paragraph (1) for 

6 a fiscal year is insufficient to compensate all eligible 

7 owners under this section, the Secretary shall pro-rate 

8 payments for that fiscal year on a per acre basis. 

9 SEC. 416. SUGAR BEET AND SUGAR CANE DISASTER ASSIST10 ANCE. 

11 (a) IN GENERAL.—The Secretary shall use 

12 $24,000,000 of funds of the Commodity Credit Corporation 

13 to provide assistance to sugar beet producers that suffered 

14 production losses (including quality losses) for the applica15 ble crop. 

16 (b) REQUIREMENT.—The Secretary shall make pay17 ments under subsection (a) in the same manner as pay18 ments were made under section 208 of the Agricultural As19 sistance Act of 2003 (Public Law 108–7; 117 Stat. 544), 

20 including using the same indemnity benefits as were used 

21 in carrying out that section. 

22 (c) HAWAII.—The Secretary shall use $3,000,000 of 

23 funds of the Commodity Credit Corporation to assist sugar24 cane growers in Hawaii by making a payment in that 

25 amount to an agricultural transportation cooperative in 


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1 Hawaii, the members of which are eligible to obtain a loan 

2 under section 156(a) of the Federal Agriculture Improve3 ment and Reform Act of 1996 (7 U.S.C. 7272(a)). 

4 (d) ELECTION OF CROP YEAR.—If a producer incurred 

5 qualifying crop losses in more than one of the crop years 

6 during the applicable period, the producers on a farm shall 

7 elect to receive assistance under this section for losses in8 curred in only one of the crop years. 

9 SEC. 417. NONINSURED CROP ASSISTANCE PROGRAM. 

10 Section 196(c) of the Federal Agriculture Improvement 

11 and Reform Act of 1996 (7 U.S.C. 7333(c)) is amended by 

12 adding at the end the following: 

13 ‘‘(5) LOSS ASSESSMENTFOR GRAZING.—The Sec14 retary shall permit the use of 1 claims adjustor cer15 tified by the Secretary to assess the quantity of loss 

16 on the acreage or allotment of a producer devoted to 

17 grazing for livestock under this section.’’. 

18 SEC. 418. REDUCTION IN PAYMENTS. 

19 The amount of any payment for which a producer is 

20 eligible under this subtitle shall be reduced by any amount 

21 received by the producer for the same loss or any similar 

22 loss under— 

23 (1) the Department of Defense, Emergency Sup24 plemental Appropriations to Address Hurricanes in 


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1 the Gulf of Mexico, and Pandemic Influenza Act, 

2 2006 (Public Law 109–148; 119 Stat. 2680); 

3 (2) an agricultural disaster assistance provision 

4 contained in the announcement of the Secretary on 

5 January 26, 2006, or August 29, 2006; 

6 (3) the Emergency Supplemental Appropriations 

7 Act for Defense, the Global War on Terror, and Hur8 ricane Recovery, 2006 (Public Law 109–234; 120 

9 Stat. 418); or 

10 (4) the Livestock Assistance Grant Program an11 nounced by the Secretary on August 29, 2006. 

12 Subtitle B—Small Business 

13 Economic Loss Grant Program 

14 SEC. 421. SMALL BUSINESS ECONOMIC LOSS GRANT PRO15 GRAM. 

16 (a) DEFINITION OF QUALIFIED STATE.—In this sec17 tion, the term ‘‘qualified State’’ means a State in which 

18 at least 50 percent of the counties of the State were declared 

19 to be primary agricultural disaster areas by the Secretary 

20 during the applicable period. 

21 (b) GRANTS TO QUALIFIED STATES.— 

22 (1) IN GENERAL.—The Secretary shall use 

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1 culture or comparable State agencies in qualified 

2 States. 

3 (2) AMOUNT.— 

4 (A) IN GENERAL.—Subject to subparagraph 

5 (B), the Secretary shall allocate grants among 

6 qualified States described in paragraph (1) based 

7 on the average value of agricultural sector pro8 duction in the qualified State, determined as a 

9 percentage of the gross domestic product of the 

10 qualified State. 

11 (B) MINIMUM AMOUNT.—The minimum 

12 amount of a grant under this subsection shall be 

13 $500,000. 

14 (3) REQUIREMENT.—To be eligible to receive a 

15 grant under this subsection, a qualified State shall 

16 agree to carry out an expedited disaster assistance 

17 program to provide direct payments to qualified 

18 small businesses in accordance with subsection (c). 

19 (c) DIRECT PAYMENTS TO QUALIFIED SMALL BUSI20 NESSES.— 

21 (1) IN GENERAL.—In carrying out an expedited 

22 disaster assistance program described in subsection 

23 (b)(3), a qualified State shall provide direct payments 

24 to eligible small businesses in the qualified State that 

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1 ble period as a direct result of weather-related agri2 cultural losses to the crop or livestock production sec3 tors of the qualified State, as determined by the Sec4 retary. 

5 (2) ELIGIBILITY.— 

6 (A) IN GENERAL.—To be eligible to receive 

7 a direct payment under paragraph (1), a small 

8 business shall— 

9 (i) have less than $15,000,000 in aver10 age annual gross income from all business 

11 activities, at least 75 percent of which shall 

12 be directly related to production agriculture 

13 or agriculture support industries, as deter14 mined by the Secretary; 

15 (ii) verify the amount of economic loss 

16 attributable to weather-related agricultural 

17 losses using such documentation as the Sec18 retary and the head of the qualified State 

19 agency may require; 

20 (iii) have suffered losses attributable to 

21 weather-related agricultural disasters that 

22 equal at least 50 percent of the total eco23 nomic loss of the small business for each 

24 year a grant is requested; and 


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1 (iv) demonstrate that the grant will 

2 materially improve the likelihood the busi3 ness will— 

4 (I) recover from the disaster; and 

5 (II) continue to service and sup6 port production agriculture. 

7 (B) EMERGENCY GRANTS TO ASSIST LOW8 INCOME MIGRANTAND SEASONAL FARM9 WORKERS.— 

10 (i) Funds made available by this sub11 title may be used to carry out assistance 

12 programs in States that are consistent with 

13 the purpose and intent of the program au14 thorized at section 2281 of the Food, Agri15 culture, Conservation and Trade Act of 

16 1990 (42 U.S.C. 5177a). 

17 (ii) In carrying out this subparagraph, 

18 a qualified State may waive the gross in19 come requirement at subparagraph (A)(i) of 

20 this paragraph. 

21 (3) REQUIREMENTS.—A direct payment to small 

22 business under this subsection shall— 

23 (A) be limited to not more than 2 years of 

24 documented losses; and 


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1 (B) be in an amount of not more than 75 

2 percent of the documented average economic loss 

3 attributable to weather-related agriculture disas4 ters for each eligible year in the qualified State. 

5 (4) INSUFFICIENTFUNDING.—If the grant funds 

6 received by a qualified State agency under subsection 

7 (b) are insufficient to fund the direct payments of the 

8 qualified State agency under this subsection, the 

9 qualified State agency may apply a proportional re10 duction to all of the direct payments. 

11 Subtitle C—Forestry 

12 SEC. 431. TREE ASSISTANCE PROGRAM. 

13 (a) DEFINITION OF TREE.—In this section, the term 

14 ‘‘tree’’ includes— 

15 (1) a tree (including a Christmas tree, orna16 mental tree, nursery tree, and potted tree); 

17 (2) a bush (including a shrub, nursery shrub, 

18 nursery bush, ornamental bush, ornamental shrub, 

19 potted bush, and potted shrub); and 

20 (3) a vine (including a nursery vine and orna21 mental vine). 

22 (b) PROGRAM.—Except as otherwise provided in this 

23 section, the Secretary shall use such sums as are necessary 

24 of the funds of the Commodity Credit Corporation to pro25 vide assistance under the terms and conditions of the tree 


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1 assistance program established under subtitle C of title X 

2 of the Farm Security and Rural Investment Act of 2002 

3 (7 U.S.C. 8201 et seq.) to— 

4 (1) producers who suffered tree losses in disaster 

5 counties; and 

6 (2) fruit and tree nut producers in disaster 

7 counties. 

8 (c) COSTS.—Funds made available under this section 

9 shall also be made available to cover costs associated with 

10 tree pruning, tree rehabilitation, and other appropriate 

11 tree-related activities as determined by the Secretary. 

12 (d) SCOPE OF ASSISTANCE.—Assistance under this sec13 tion shall compensate for losses resulting from disasters dur14 ing the applicable period. 

15 Subtitle D—Conservation 

16 SEC. 441. EMERGENCY CONSERVATION PROGRAM. 

17 The Secretary shall use an additional $35,000,000 of 

18 funds of the Commodity Credit Corporation to carry out 

19 emergency measures, including wildfire recovery efforts in 

20 Montana and other States, identified by the Administrator 

21 of the Farm Service Agency as of the date of enactment of 

22 this Act through the emergency conservation program estab23 lished under title IV of the Agricultural Credit Act of 1978 

24 (16 U.S.C. 2201 et seq.), of which $3,000,000 shall be to 

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1 lapsed water tanks, $1,000,000 to provide emergency loans 

2 for losses of agricultural income, and $2,000,000 to repair 

3 ditch irrigation systems in conjunction with the Presi4 dential declaration of a major disaster (FEMA–1664–DR), 

5 dated October 17, 2006, and related determinations issued 

6 under the authority of the Robert T. Stafford Disaster Relief 

7 and Emergency Assistance Act, 42 U.S.C. 5121–5206 (the 

8 Stafford Act): Provided, That the Secretary may transfer 

9 a portion of these funds to the Natural Resources Conserva10 tion Service, to include Resource Conservation and Develop11 ment councils. 

12 SEC. 442. EMERGENCY WATERSHED PROTECTION PRO13 GRAM. 

14 The Secretary shall use an additional $50,000,000 of 

15 funds of the Commodity Credit Corporation to carry out 

16 emergency measures identified by the Chief of the Natural 

17 Resources Conservation Service as of the date of enactment 

18 of this Act through the emergency watershed protection pro19 gram established under section 403 of the Agricultural 

20 Credit Act of 1978 (16 U.S.C. 2203). 

21 SEC. 443. CONSERVATION SECURITY PROGRAM. 

22 Section 20115 of Public Law 110–5 is amended by 

23 striking ‘‘section 726’’ and inserting in lieu thereof ‘‘section 

24 726; section 741’’. 


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1 Subtitle E—Farm Service Agency 

2 SEC. 451. FUNDING FOR ADDITIONAL PERSONNEL AND AD3 MINISTRATIVE SUPPORT. 

4 The Secretary shall use $30,000,000 of funds of the 

5 Commodity Credit Corporation— 

6 (1) of which $9,000,000 shall be used to hire ad7 ditional County Farm Service Agency personnel to 

8 expedite the implementation of, and delivery under, 

9 the agricultural disaster and economic assistance pro10 grams under this title; and 

11 (2) to be used as the Secretary determines to be 

12 necessary to carry out this and other agriculture and 

13 disaster assistance programs. 

14 Subtitle F—Miscellaneous 

15 SEC. 461. CONTRACT WAIVER. 

16 In carrying out this title and section 101(a)(5) of the 

17 Emergency Supplemental Appropriations for Hurricane 

18 Disasters Assistance Act, 2005 (Public Law 108–324; 118 

19 Stat. 1233), the Secretary shall not require participation 

20 in a crop insurance pilot program relating to forage. 

21 SEC. 462. INSECT INFESTATIONS. 

22 (a) IN GENERAL.—The Secretary, acting through the 

23 Administrator of the Animal and Plant Health Inspection 

24 Service, shall use not less than $20,000,000 of funds made 

25 available from the Commodity Credit Corporation for the 


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1 Animal and Plant Health Inspection Service to survey and 

2 control insect infestations in the States of Nevada, Idaho, 

3 and Utah. 

4 (b) USE OF FUNDS.—Funds described in subsection 

5 (a) shall be used in a manner that promotes cooperative 

6 efforts between Federal programs (including the plant pro7 tection and quarantine program of the Animal and Plant 

8 Health Inspection Service) and State and local programs 

9 carried out, in whole or in part, with Federal funds to fight 

10 insect outbreaks. 

11 SEC. 463. FUNDING. 

12 The Secretary shall use the funds, facilities, and au13 thorities of the Commodity Credit Corporation to carry out 

14 this title, to remain available until expended. 

15 SEC. 464. REGULATIONS. 

16 (a) IN GENERAL.—The Secretary may promulgate 

17 such regulations as are necessary to implement this title. 

18 (b) PROCEDURE.—The promulgation of the regulations 

19 and administration of this title shall be made without re20 gard to— 

21 (1) the notice and comment provisions of section 

22 553 of title 5, United States Code; 

23 (2) the Statement of Policy of the Secretary of 

24 Agriculture effective July 24, 1971 (36 Fed. Reg. 


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1 13804), relating to notices of proposed rulemaking 

2 and public participation in rulemaking; and 

3 (3) chapter 35 of title 44, United States Code 

4 (commonly known as the ‘‘Paperwork Reduction 

5 Act’’). 

6 (c) CONGRESSIONAL REVIEW OF AGENCY RULE7 MAKING.—In carrying out this section, the Secretary shall 

8 use the authority provided under section 808 of title 5, 

9 United States Code. 

10 Subtitle G—Emergency Designation 

11 SEC. 471. EMERGENCY DESIGNATION. 

12 The amounts provided under this title are designated 

13 as an emergency requirement pursuant to section 402 of 

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

15 TITLE V—FAIR MINIMUM WAGE 

16 AND TAX RELIEF 

17 Subtitle A—Fair Minimum Wage 

18 SEC. 500. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘Fair Minimum 

20 Wage Act of 2007’’. 

21 SEC. 501. MINIMUM WAGE. 

22 (a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 

23 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 

24 to read as follows: 


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1 ‘‘(1) except as otherwise provided in this section, 

2 not less than— 

3 ‘‘(A) $5.85 an hour, beginning on the 60th 

4 day after the date of enactment of the Fair Min5 imum Wage Act of 2007; 

6 ‘‘(B) $6.55 an hour, beginning 12 months 

7 after that 60th day; and 

8 ‘‘(C) $7.25 an hour, beginning 24 months 

9 after that 60th day;’’. 

10 (b) EFFECTIVE DATE.—The amendment made by sub11 section (a) shall take effect 60 days after the date of enact12 ment of this Act. 

13 SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COM14 MONWEALTH OF THE NORTHERN MARIANA 

15 ISLANDS. 

16 (a) IN GENERAL.—Section 6 of the Fair Labor Stand17 ards Act of 1938 (29 U.S.C. 206) shall apply to the Com18 monwealth of the Northern Mariana Islands. 

19 (b) TRANSITION.—Notwithstanding subsection (a), the 

20 minimum wage applicable to the Commonwealth of the 

21 Northern Mariana Islands under section 6(a)(1) of the Fair 

22 Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 

23 be— 

24 (1) $3.55 an hour, beginning on the 60th day 

25 after the date of enactment of this Act; and 


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1 (2) increased by $0.50 an hour (or such lesser 

2 amount as may be necessary to equal the minimum 

3 wage under section 6(a)(1) of such Act), beginning 6 

4 months after the date of enactment of this Act and 

5 every 6 months thereafter until the minimum wage 

6 applicable to the Commonwealth of the Northern Mar7 iana Islands under this subsection is equal to the 

8 minimum wage set forth in such section. 

9 Subtitle B—Small Business Tax 

10 Incentives 

11 SEC. 510. SHORT TITLE; AMENDMENT OF CODE. 

12 (a) SHORT TITLE.—This subtitle may be cited as the 

13 ‘‘Small Business and Work Opportunity Act of 2007’’. 

14 (b) AMENDMENTOF 1986 CODE.—Except as otherwise 

15 expressly provided, whenever in this subtitle an amendment 

16 or repeal is expressed in terms of an amendment to, or re17 peal of, a section or other provision, the reference shall be 

18 considered to be made to a section or other provision of the 

19 Internal Revenue Code of 1986. 


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1 PART I—SMALL BUSINESS TAX RELIEF 

2 PROVISIONS 

3 Subpart A—General Provisions 

4 SEC. 511. EXTENSION OF INCREASED EXPENSING FOR 

5 SMALL BUSINESSES. 

6 Section 179 (relating to election to expense certain de7 preciable business assets) is amended by striking ‘‘2010’’ 

8 each place it appears and inserting ‘‘2011’’. 

9 SEC. 512. EXTENSION AND MODIFICATION OF 15-YEAR 

10 STRAIGHT-LINE COST RECOVERY FOR QUALI11 FIED LEASEHOLD IMPROVEMENTS AND 

12 QUALIFIED RESTAURANT IMPROVEMENTS; 15- 

13 YEAR STRAIGHT-LINE COST RECOVERY FOR 

14 CERTAIN IMPROVEMENTS TO RETAIL SPACE. 

15 (a) EXTENSION OF LEASEHOLD AND RESTAURANT IM16 PROVEMENTS.— 

17 (1) IN GENERAL.—Clauses (iv) and (v) of section 

18 168(e)(3)(E) (relating to 15-year property) are each 

19 amended by striking ‘‘January 1, 2008’’ and insert20 ing ‘‘January 1, 2009’’. 

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

22 this subsection shall apply to property placed in serv23 ice after December 31, 2007. 

24 (b) MODIFICATION OF TREATMENT OF QUALIFIED

25 RESTAURANT PROPERTY AS 15-YEAR PROPERTY FOR PUR26 POSES OF DEPRECIATION DEDUCTION.— 


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1 (1) TREATMENT TO INCLUDE NEW CONSTRUC2 TION.—Paragraph (7) of section 168(e) (relating to 

3 classification of property) is amended to read as fol4 lows: 

5 ‘‘(7) QUALIFIED RESTAURANT PROPERTY.—The 

6 term ‘qualified restaurant property’ means any sec7 tion 1250 property which is a building (or its struc8 tural components) or an improvement to such build9 ing if more than 50 percent of such building’s square 

10 footage is devoted to preparation of, and seating for 

11 on-premises consumption of, prepared meals.’’. 

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

13 this subsection shall apply to any property placed in 

14 service after the date of the enactment of this Act, the 

15 original use of which begins with the taxpayer after 

16 such date. 

17 (c) RECOVERY PERIOD FOR DEPRECIATION OF CER18 TAIN IMPROVEMENTS TO RETAIL SPACE.— 

19 (1) 15-YEAR RECOVERY PERIOD.—Section 

20 168(e)(3)(E) (relating to 15-year property) is amend21 ed by striking ‘‘and’’ at the end of clause (vii), by 

22 striking the period at the end of clause (viii) and in23 serting ‘‘, and’’, and by adding at the end the fol24 lowing new clause: 


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1 ‘‘(ix) any qualified retail improvement 

2 property placed in service before January 1, 

3 2009.’’. 

4 (2) QUALIFIED RETAIL IMPROVEMENT PROP5 ERTY.—Section 168(e) is amended by adding at the 

6 end the following new paragraph: 

7 ‘‘(8) QUALIFIED RETAIL IMPROVEMENT PROP8 ERTY.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified re10 tail improvement property’ means any improve11 ment to an interior portion of a building which 

12 is nonresidential real property if— 

13 ‘‘(i) such portion is open to the general 

14 public and is used in the retail trade or 

15 business of selling tangible personal prop16 erty to the general public, and 

17 ‘‘(ii) such improvement is placed in 

18 service more than 3 years after the date the 

19 building was first placed in service. 

20 ‘‘(B) IMPROVEMENTS MADE BY OWNER.—In 

21 the case of an improvement made by the owner 

22 of such improvement, such improvement shall be 

23 qualified retail improvement property (if at all) 

24 only so long as such improvement is held by such 

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1 graph (6)(B) shall apply for purposes of the pre2 ceding sentence. 

3 ‘‘(C) CERTAIN IMPROVEMENTS NOT IN4 CLUDED.—Such term shall not include any im5 provement for which the expenditure is attrib6 utable to— 

7 ‘‘(i) the enlargement of the building, 

8 ‘‘(ii) any elevator or escalator, 

9 ‘‘(iii) any structural component bene10 fitting a common area, or 

11 ‘‘(iv) the internal structural framework 

12 of the building.’’. 

13 (3) REQUIREMENT TO USE STRAIGHT LINE

14 METHOD.—Section 168(b)(3) is amended by adding 

15 at the end the following new subparagraph: 

16 ‘‘(I) Qualified retail improvement property 

17 described in subsection (e)(8).’’. 

18 (4) ALTERNATIVE SYSTEM.—The table contained 

19 in section 168(g)(3)(B) is amended by inserting after 

20 the item relating to subparagraph (E)(viii) the fol21 lowing new item: 

(E)(ix) ..................................................................................................... 39’’. 


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1 (5) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to property placed in 

3 service after the date of the enactment of this Act. 

4 SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES 

5 FOR SMALL BUSINESS. 

6 (a) CASH ACCOUNTING PERMITTED.— 

7 (1) IN GENERAL.—Section 446 (relating to gen8 eral rule for methods of accounting) is amended by 

9 adding at the end the following new subsection: 

10 ‘‘(g) CERTAIN SMALL BUSINESS TAXPAYERS PER11 MITTED TO USE CASH ACCOUNTING METHOD WITHOUT

12 LIMITATION.— 

13 ‘‘(1) IN GENERAL.—An eligible taxpayer shall 

14 not be required to use an accrual method of account15 ing for any taxable year. 

16 ‘‘(2) ELIGIBLE TAXPAYER.—For purposes of this 

17 subsection, a taxpayer is an eligible taxpayer with re18 spect to any taxable year if— 

19 ‘‘(A) for each of the prior taxable years end20 ing on or after the date of the enactment of this 

21 subsection, the taxpayer (or any predecessor) met 

22 the gross receipts test in effect under section 

23 448(c) for such taxable year, and 

24 ‘‘(B) the taxpayer is not subject to section 

25 447 or 448.’’. 


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1 (2) EXPANSION OF GROSS RECEIPTS TEST.— 

2 (A) IN GENERAL.—Paragraph (3) of section 

3 448(b) (relating to entities with gross receipts of 

4 not more than $5,000,000) is amended to read as 

5 follows: 

6 ‘‘(3) ENTITIES MEETING GROSS RECEIPTS

7 TEST.—Paragraphs (1) and (2) of subsection (a) shall 

8 not apply to any corporation or partnership for any 

9 taxable year if, for each of the prior taxable years 

10 ending on or after the date of the enactment of the 

11 Small Business and Work Opportunity Act of 2007, 

12 the entity (or any predecessor) met the gross receipts 

13 test in effect under subsection (c) for such prior tax14 able year.’’. 

15 (B) CONFORMING AMENDMENTS.—Section 

16 448(c) of such Code is amended— 

17 (i) by striking ‘‘$5,000,000’’ in the 

18 heading thereof, 

19 (ii) by striking ‘‘$5,000,000’’ each 

20 place it appears in paragraph (1) and in21 serting ‘‘$10,000,000’’, and 

22 (iii) by adding at the end the following 

23 new paragraph: 

24 ‘‘(4) INFLATION ADJUSTMENT.—In the case of 

25 any taxable year beginning in a calendar year after 


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1 2008, the dollar amount contained in paragraph (1) 

2 shall be increased by an amount equal to— 

3 ‘‘(A) such dollar amount, multiplied by 

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar year 

6 in which the taxable year begins, by substituting 

7 ‘calendar year 2007’ for ‘calendar year 1992’ in 

8 subparagraph (B) thereof. 

9 ‘‘If any amount as adjusted under this subpara10 graph is not a multiple of $100,000, such amount 

11 shall be rounded to the nearest multiple of $100,000.’’. 

12 (b) CLARIFICATION OF INVENTORY RULES FOR SMALL

13 BUSINESS.— 

14 (1) IN GENERAL.—Section 471 (relating to gen15 eral rule for inventories) is amended by redesignating 

16 subsection (c) as subsection (d) and by inserting after 

17 subsection (b) the following new subsection: 

18 ‘‘(c) SMALL BUSINESS TAXPAYERS NOT REQUIRED TO

19 USE INVENTORIES.— 

20 ‘‘(1) IN GENERAL.—A qualified taxpayer shall 

21 not be required to use inventories under this section 

22 for a taxable year. 

23 ‘‘(2) TREATMENT OF TAXPAYERS NOT USING IN24 VENTORIES.—If a qualified taxpayer does not use in25 ventories with respect to any property for any taxable 


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1 year beginning after the date of the enactment of this 

2 subsection, such property shall be treated as a mate3 rial or supply which is not incidental. 

4 ‘‘(3) QUALIFIED TAXPAYER.—For purposes of 

5 this subsection, the term ‘qualified taxpayer’ means— 

6 ‘‘(A) any eligible taxpayer (as defined in 

7 section 446(g)(2)), and 

8 ‘‘(B) any taxpayer described in section 

9 448(b)(3).’’. 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) Subpart D of part II of subchapter E 

12 of chapter 1 is amended by striking section 474. 

13 (B) The table of sections for subpart D of 

14 part II of subchapter E of chapter 1 is amended 

15 by striking the item relating to section 474. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to taxable years beginning after the date 

18 of the enactment of this Act. 

19 SEC. 514. EXTENSION AND MODIFICATION OF COMBINED 

20 WORK OPPORTUNITY TAX CREDIT AND WEL21 FARE-TO-WORK CREDIT. 

22 (a) EXTENSION.—Section 51(c)(4)(B) (relating to ter23 mination) is amended by striking ‘‘2007’’ and inserting 

24 ‘‘2012’’. 


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1 (b) INCREASE IN MAXIMUM AGE FOR DESIGNATED

2 COMMUNITY RESIDENTS.— 

3 (1) IN GENERAL.—Paragraph (5) of section 

4 51(d) is amended to read as follows: 

5 ‘‘(5) DESIGNATED COMMUNITY RESIDENTS.— 

6 ‘‘(A) IN GENERAL.—The term ‘designated 

7 community resident’ means any individual who 

8 is certified by the designated local agency— 

9 ‘‘(i) as having attained age 18 but not 

10 age 40 on the hiring date, and 

11 ‘‘(ii) as having his principal place of 

12 abode within an empowerment zone, enter13 prise community, renewal community, or 

14 rural renewal county. 

15 ‘‘(B) INDIVIDUAL MUST CONTINUE TO RE16 SIDE IN ZONE, COMMUNITY, OR COUNTY.—In the 

17 case of a designated community resident, the 

18 term ‘qualified wages’ shall not include wages 

19 paid or incurred for services performed while the 

20 individual’s principal place of abode is outside 

21 an empowerment zone, enterprise community, re22 newal community, or rural renewal county. 

23 ‘‘(C) RURAL RENEWAL COUNTY.—For pur24 poses of this paragraph, the term ‘rural renewal 

25 county’ means any county which— 


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1 ‘‘(i) is outside a metropolitan statis2 tical area (defined as such by the Office of 

3 Management and Budget), and 

4 ‘‘(ii) during the 5-year periods 1990 

5 through 1994 and 1995 through 1999 had a 

6 net population loss.’’. 

7 (2) CONFORMING AMENDMENT.—Subparagraph 

8 (D) of section 51(d)(1) is amended to read as follows: 

9 ‘‘(D) a designated community resident,’’. 

10 (c) CLARIFICATION OF TREATMENT OF INDIVIDUALS

11 UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) of 

12 section 51(d)(6) (relating to vocational rehabilitation refer13 ral) is amended by striking ‘‘or’’ at the end of clause (i), 

14 by striking the period at the end of clause (ii) and inserting 

15 ‘‘, or’’, and by adding at the end the following new clause: 

16 ‘‘(iii) an individual work plan devel17 oped and implemented by an employment 

18 network pursuant to subsection (g) of sec19 tion 1148 of the Social Security Act with 

20 respect to which the requirements of such 

21 subsection are met.’’. 

22 (d) TREATMENT OF DISABLED VETERANS UNDER THE

23 WORK OPPORTUNITY TAX CREDIT.— 

24 (1) DISABLED VETERANS TREATED AS MEMBERS

25 OF TARGETED GROUP.— 


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1 (A) IN GENERAL.—Subparagraph (A) of 

2 section 51(d)(3) (relating to qualified veteran) is 

3 amended by striking ‘‘agency as being a member 

4 of a family’’ and all that follows and inserting 

5 ‘‘agency as— 

6 ‘‘(i) being a member of a family receiv7 ing assistance under a food stamp program 

8 under the Food Stamp Act of 1977 for at 

9 least a 3-month period ending during the 

10 12-month period ending on the hiring date, 

11 or 

12 ‘‘(ii) entitled to compensation for a 

13 service-connected disability incurred after 

14 September 10, 2001.’’. 

15 (B) DEFINITIONS.—Paragraph (3) of sec16 tion 51(d) is amended by adding at the end the 

17 following new subparagraph: 

18 ‘‘(C) OTHER DEFINITIONS.—For purposes of 

19 subparagraph (A), the terms ‘compensation’ and 

20 ‘service-connected’ have the meanings given such 

21 terms under section 101 of title 38, United 

22 States Code.’’. 

23 (2) INCREASE IN AMOUNT OF WAGES TAKEN INTO

24 ACCOUNTFOR DISABLED VETERANS.—Paragraph (3) 

25 of section 51(b) is amended— 


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1 (A) by inserting ‘‘($12,000 per year in the 

2 case of any individual who is a qualified veteran 

3 by reason of subsection (d)(3)(A)(ii))’’ before the 

4 period at the end, and 

5 (B) by striking ‘‘ONLY FIRST $6,000 of’’ 

6 in the heading and inserting ‘‘LIMITATION

7 ON’’. 

8 (e) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to individuals who begin work for the 

10 employer after the date of the enactment of this Act, in tax11 able years ending after such date. 

12 SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZA13 TIONS. 

14 (a) EMPLOYMENT TAXES.—Chapter 25 (relating to 

15 general provisions relating to employment taxes) is amend16 ed by adding at the end the following new section: 

17 ‘‘SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANI18 ZATIONS. 

19 ‘‘(a) GENERAL RULES.—For purposes of the taxes, and 

20 other obligations, imposed by this subtitle— 

21 ‘‘(1) a certified professional employer organiza22 tion shall be treated as the employer (and no other 

23 person shall be treated as the employer) of any work 

24 site employee performing services for any customer of 

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1 tion remitted by such organization to such work site 

2 employee, and 

3 ‘‘(2) exclusions, definitions, and other rules 

4 which are based on the type of employer and which 

5 would (but for paragraph (1)) apply shall apply with 

6 respect to such taxes imposed on such remuneration. 

7 ‘‘(b) SUCCESSOR EMPLOYER STATUS.—For purposes 

8 of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)— 

9 ‘‘(1) a certified professional employer organiza10 tion entering into a service contract with a customer 

11 with respect to a work site employee shall be treated 

12 as a successor employer and the customer shall be 

13 treated as a predecessor employer during the term of 

14 such service contract, and 

15 ‘‘(2) a customer whose service contract with a 

16 certified professional employer organization is termi17 nated with respect to a work site employee shall be 

18 treated as a successor employer and the certified pro19 fessional employer organization shall be treated as a 

20 predecessor employer. 

21 ‘‘(c) LIABILITY OF CERTIFIED PROFESSIONAL EM22 PLOYER ORGANIZATION.—Solely for purposes of its liability 

23 for the taxes, and other obligations, imposed by this sub24 title— 


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1 ‘‘(1) a certified professional employer organiza2 tion shall be treated as the employer of any indi3 vidual (other than a work site employee or a person 

4 described in subsection (f)) who is performing services 

5 covered by a contract meeting the requirements of sec6 tion 7705(e)(2), but only with respect to remunera7 tion remitted by such organization to such individual, 

8 and 

9 ‘‘(2) exclusions, definitions, and other rules 

10 which are based on the type of employer and which 

11 would (but for paragraph (1)) apply shall apply with 

12 respect to such taxes imposed on such remuneration. 

13 ‘‘(d) TREATMENT OF CREDITS.— 

14 ‘‘(1) IN GENERAL.—For purposes of any credit 

15 specified in paragraph (2)— 

16 ‘‘(A) such credit with respect to a work site 

17 employee performing services for the customer 

18 applies to the customer, not the certified profes19 sional employer organization, 

20 ‘‘(B) the customer, and not the certified pro21 fessional employer organization, shall take into 

22 account wages and employment taxes— 

23 ‘‘(i) paid by the certified professional 

24 employer organization with respect to the 

25 work site employee, and 


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1 ‘‘(ii) for which the certified profes2 sional employer organization receives pay3 ment from the customer, and 

4 ‘‘(C) the certified professional employer or5 ganization shall furnish the customer with any 

6 information necessary for the customer to claim 

7 such credit. 

8 ‘‘(2) CREDITS SPECIFIED.—A credit is specified 

9 in this paragraph if such credit is allowed under— 

10 ‘‘(A) section 41 (credit for increasing re11 search activity), 

12 ‘‘(B) section 45A (Indian employment cred13 it), 

14 ‘‘(C) section 45B (credit for portion of em15 ployer social security taxes paid with respect to 

16 employee cash tips), 

17 ‘‘(D) section 45C (clinical testing expenses 

18 for certain drugs for rare diseases or conditions), 

19 ‘‘(E) section 51 (work opportunity credit), 

20 ‘‘(F) section 51A (temporary incentives for 

21 employing long-term family assistance recipi22 ents), 

23 ‘‘(G) section 1396 (empowerment zone em24 ployment credit), 


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1 ‘‘(H) 1400(d) (DC Zone employment cred2 it), 

3 ‘‘(I) Section 1400H (renewal community 

4 employment credit), and 

5 ‘‘(J) any other section as provided by the 

6 Secretary. 

7 ‘‘(e) SPECIAL RULE FOR RELATED PARTY.—This sec8 tion shall not apply in the case of a customer which bears 

9 a relationship to a certified professional employer organiza10 tion described in section 267(b) or 707(b). For purposes of 

11 the preceding sentence, such sections shall be applied by sub12 stituting ‘10 percent’ for ‘50 percent’. 

13 ‘‘(f) SPECIAL RULE FOR CERTAIN INDIVIDUALS.—For 

14 purposes of the taxes imposed under this subtitle, an indi15 vidual with net earnings from self-employment derived from 

16 the customer’s trade or business is not a work site employee 

17 with respect to remuneration paid by a certified profes18 sional employer organization. 

19 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

20 such regulations as may be necessary or appropriate to 

21 carry out the purposes of this section.’’. 

22 (b) CERTIFIED PROFESSIONAL EMPLOYER ORGANIZA23 TION DEFINED.—Chapter 79 (relating to definitions) is 

24 amended by adding at the end the following new section: 


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1 ‘‘SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANI2 ZATIONS DEFINED. 

3 ‘‘(a) IN GENERAL.—For purposes of this title, the term 

4 ‘certified professional employer organization’ means a per5 son who has been certified by the Secretary for purposes 

6 of section 3511 as meeting the requirements of subsection 

7 (b). 

8 ‘‘(b) GENERAL REQUIREMENTS.—A person meets the 

9 requirements of this subsection if such person— 

10 ‘‘(1) demonstrates that such person (and any 

11 owner, officer, and such other persons as may be spec12 ified in regulations) meets such requirements as the 

13 Secretary shall establish with respect to tax status, 

14 background, experience, business location, and annual 

15 financial audits, 

16 ‘‘(2) computes its taxable income using an ac17 crual method of accounting unless the Secretary ap18 proves another method, 

19 ‘‘(3) agrees that it will satisfy the bond and 

20 independent financial review requirements of sub21 section (c) on an ongoing basis, 

22 ‘‘(4) agrees that it will satisfy such reporting ob23 ligations as may be imposed by the Secretary, 

24 ‘‘(5) agrees to verify on such periodic basis as the 

25 Secretary may prescribe that it continues to meet the 

26 requirements of this subsection, and 


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1 ‘‘(6) agrees to notify the Secretary in writing 

2 within such time as the Secretary may prescribe of 

3 any change that materially affects whether it con4 tinues to meet the requirements of this subsection. 

5 ‘‘(c) BOND AND INDEPENDENT FINANCIAL REVIEW RE6 QUIREMENTS.— 

7 ‘‘(1) IN GENERAL.—An organization meets the 

8 requirements of this paragraph if such organization— 

9 ‘‘(A) meets the bond requirements of para10 graph (2), and 

11 ‘‘(B) meets the independent financial review 

12 requirements of paragraph (3). 

13 ‘‘(2) BOND.— 

14 ‘‘(A) IN GENERAL.—A certified professional 

15 employer organization meets the requirements of 

16 this paragraph if the organization has posted a 

17 bond for the payment of taxes under subtitle C 

18 (in a form acceptable to the Secretary) in an 

19 amount at least equal to the amount specified in 

20 subparagraph (B). 

21 ‘‘(B) AMOUNTOF BOND.—For the period 

22 April 1 of any calendar year through March 31 

23 of the following calendar year, the amount of the 

24 bond required is equal to the greater of— 


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1 ‘‘(i) 5 percent of the organization’s li2 ability under section 3511 for taxes imposed 

3 by subtitle C during the preceding calendar 

4 year (but not to exceed $1,000,000), or 

5 ‘‘(ii) $50,000. 

6 ‘‘(3) INDEPENDENTFINANCIAL REVIEW REQUIRE7 MENTS.—A certified professional employer organiza8 tion meets the requirements of this paragraph if such 

9 organization— 

10 ‘‘(A) has, as of the most recent review date, 

11 caused to be prepared and provided to the Sec12 retary (in such manner as the Secretary may 

13 prescribe) an opinion of an independent certified 

14 public accountant that the certified professional 

15 employer organization’s financial statements are 

16 presented fairly in accordance with generally ac17 cepted accounting principles, and 

18 ‘‘(B) provides, not later than the last day of 

19 the second month beginning after the end of each 

20 calendar quarter, to the Secretary from an inde21 pendent certified public accountant an assertion 

22 regarding Federal employment tax payments 

23 and an examination level attestation on such as24 sertion. 


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1 Such assertion shall state that the organization has 

2 withheld and made deposits of all taxes imposed by 

3 chapters 21, 22, and 24 of the Internal Revenue Code 

4 in accordance with regulations imposed by the Sec5 retary for such calendar quarter and such examina6 tion level attestation shall state that such assertion is 

7 fairly stated, in all material respects. 

8 ‘‘(4) CONTROLLED GROUP RULES.—For purposes 

9 of the requirements of paragraphs (2) and (3), all 

10 professional employer organizations that are members 

11 of a controlled group within the meaning of sections 

12 414(b) and (c) shall be treated as a single organiza13 tion. 

14 ‘‘(5) FAILURE TO FILE ASSERTION AND ATTESTA15 TION.—If the certified professional employer organi16 zation fails to file the assertion and attestation re17 quired by paragraph (3) with respect to any calendar 

18 quarter, then the requirements of paragraph (3) with 

19 respect to such failure shall be treated as not satisfied 

20 for the period beginning on the due date for such at21 testation. 

22 ‘‘(6) REVIEW DATE.—For purposes of paragraph 

23 (3)(A), the review date shall be 6 months after the 

24 completion of the organization’s fiscal year. 


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1 ‘‘(d) SUSPENSION AND REVOCATION AUTHORITY.—The 

2 Secretary may suspend or revoke a certification of any per3 son under subsection (b) for purposes of section 3511 if the 

4 Secretary determines that such person is not satisfying the 

5 representations or requirements of subsections (b) or (c), or 

6 fails to satisfy applicable accounting, reporting, payment, 

7 or deposit requirements. 

8 ‘‘(e) WORK SITE EMPLOYEE.—For purposes of this 

9 title— 

10 ‘‘(1) IN GENERAL.—The term ‘work site em11 ployee’ means, with respect to a certified professional 

12 employer organization, an individual who— 

13 ‘‘(A) performs services for a customer pur14 suant to a contract which is between such cus15 tomer and the certified professional employer or16 ganization and which meets the requirements of 

17 paragraph (2), and 

18 ‘‘(B) performs services at a work site meet19 ing the requirements of paragraph (3). 

20 ‘‘(2) SERVICE CONTRACT REQUIREMENTS.—A 

21 contract meets the requirements of this paragraph 

22 with respect to an individual performing services for 

23 a customer if such contract is in writing and provides 

24 that the certified professional employer organization 

25 shall— 


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1 ‘‘(A) assume responsibility for payment of 

2 wages to such individual, without regard to the 

3 receipt or adequacy of payment from the cus4 tomer for such services, 

5 ‘‘(B) assume responsibility for reporting, 

6 withholding, and paying any applicable taxes 

7 under subtitle C, with respect to such individ8 ual’s wages, without regard to the receipt or ade9 quacy of payment from the customer for such 

10 services, 

11 ‘‘(C) assume responsibility for any employee 

12 benefits which the service contract may require 

13 the organization to provide, without regard to 

14 the receipt or adequacy of payment from the cus15 tomer for such services, 

16 ‘‘(D) assume responsibility for hiring, fir17 ing, and recruiting workers in addition to the 

18 customer’s responsibility for hiring, firing and 

19 recruiting workers, 

20 ‘‘(E) maintain employee records relating to 

21 such individual, and 

22 ‘‘(F) agree to be treated as a certified pro23 fessional employer organization for purposes of 

24 section 3511 with respect to such individual. 


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1 ‘‘(3) WORK SITE COVERAGE REQUIREMENT.—The 

2 requirements of this paragraph are met with respect 

3 to an individual if at least 85 percent of the individ4 uals performing services for the customer at the work 

5 site where such individual performs services are sub6 ject to 1 or more contracts with the certified profes7 sional employer organization which meet the require8 ments of paragraph (2) (but not taking into account 

9 those individuals who are excluded employees within 

10 the meaning of section 414(q)(5)). 

11 ‘‘(f) DETERMINATION OF EMPLOYMENT STATUS.—Ex12 cept to the extent necessary for purposes of section 3511, 

13 nothing in this section shall be construed to affect the deter14 mination of who is an employee or employer for purposes 

15 of this title. 

16 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

17 such regulations as may be necessary or appropriate to 

18 carry out the purposes of this section.’’. 

19 (c) CONFORMING AMENDMENTS.— 

20 (1) Section 3302 is amended by adding at the 

21 end the following new subsection: 

22 ‘‘(h) TREATMENT OF CERTIFIED PROFESSIONAL EM23 PLOYER ORGANIZATIONS.—If a certified professional em24 ployer organization (as defined in section 7705), or a cus25 tomer of such organization, makes a contribution to the 


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1 State’s unemployment fund with respect to a work site em2 ployee, such organization shall be eligible for the credits 

3 available under this section with respect to such contribu4 tion.’’. 

5 (2) Section 3303(a) is amended— 

6 (A) by striking the period at the end of 

7 paragraph (3) and inserting ‘‘; and’’ and by in8 serting after paragraph (3) the following new 

9 paragraph: 

10 ‘‘(4) if the taxpayer is a certified professional 

11 employer organization (as defined in section 7705) 

12 that is treated as the employer under section 3511, 

13 such certified professional employer organization is 

14 permitted to collect and remit, in accordance with 

15 paragraphs (1), (2), and (3), contributions during the 

16 taxable year to the State unemployment fund with re17 spect to a work site employee.’’, and 

18 (B) in the last sentence— 

19 (i) by striking ‘‘paragraphs (1), (2), 

20 and (3)’’ and inserting ‘‘paragraphs (1), 

21 (2), (3), and (4)’’, and 

22 (ii) by striking ‘‘paragraph (1), (2), or 

23 (3)’’ and inserting ‘‘paragraph (1), (2), (3), 

24 or (4)’’. 


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1 (3) Section 6053(c) (relating to reporting of tips) 

2 is amended by adding at the end the following new 

3 paragraph: 

4 ‘‘(8) CERTIFIED PROFESSIONAL EMPLOYER OR5 GANIZATIONS.—For purposes of any report required 

6 by this subsection, in the case of a certified profes7 sional employer organization that is treated under 

8 section 3511 as the employer of a work site employee, 

9 the customer with respect to whom a work site em10 ployee performs services shall be the employer for pur11 poses of reporting under this section and the certified 

12 professional employer organization shall furnish to 

13 the customer any information necessary to complete 

14 such reporting no later than such time as the Sec15 retary shall prescribe.’’. 

16 (d) CLERICAL AMENDMENTS.— 

17 (1) The table of sections for chapter 25 is amend18 ed by adding at the end the following new item: 

‘‘Sec. 3511. Certified professional employer organizations’’. 

19 (2) The table of sections for chapter 79 is amend20 ed by inserting after the item relating to section 7704 

21 the following new item: 

‘‘Sec. 7705. Certified professional employer organizations defined’’. 

22 (e) REPORTING REQUIREMENTS AND OBLIGATIONS.— 

23 The Secretary of the Treasury shall develop such reporting 

24 and recordkeeping rules, regulations, and procedures as the 


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1 Secretary determines necessary or appropriate to ensure 

2 compliance with the amendments made by this section with 

3 respect to entities applying for certification as certified pro4 fessional employer organizations or entities that have been 

5 so certified. Such rules shall be designed in a manner which 

6 streamlines, to the extent possible, the application of re7 quirements of such amendments, the exchange of informa8 tion between a certified professional employer organization 

9 and its customers, and the reporting and recordkeeping ob10 ligations of the certified professional employer organization. 

11 (f) USER FEES.—Subsection (b) of section 7528 (relat12 ing to Internal Revenue Service user fees) is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(4) CERTIFIED PROFESSIONAL EMPLOYER OR15 GANIZATIONS.—The fee charged under the program in 

16 connection with the certification by the Secretary of 

17 a professional employer organization under section 

18 7705 shall not exceed $500.’’. 

19 (g) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—The amendments made by 

21 this section shall apply with respect to wages for serv22 ices performed on or after January 1 of the first cal23 endar year beginning more than 12 months after the 

24 date of the enactment of this Act. 


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1 (2) CERTIFICATION PROGRAM.—The Secretary of 

2 the Treasury shall establish the certification program 

3 described in section 7705(b) of the Internal Revenue 

4 Code of 1986, as added by subsection (b), not later 

5 than 6 months before the effective date determined 

6 under paragraph (1). 

7 (h) NO INFERENCE.—Nothing contained in this section 

8 or the amendments made by this section shall be construed 

9 to create any inference with respect to the determination 

10 of who is an employee or employer— 

11 (1) for Federal tax purposes (other than the pur12 poses set forth in the amendments made by this sec13 tion), or 

14 (2) for purposes of any other provision of law. 

15 SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT 

16 IN HIGH OUT-MIGRATION COUNTIES. 

17 (a) IN GENERAL.—Section 168 (relating to accelerated 

18 cost recovery system) is amended by adding at the end the 

19 following new subsection: 

20 ‘‘(m) RURAL INVESTMENT PROPERTY.— 

21 ‘‘(1) IN GENERAL.—For purposes of subsection 

22 (a), the applicable recovery period for qualified rural 

23 investment property shall be determined in accord24 ance with the table contained in paragraph (2) in 

25 lieu of the table contained in subsection (c). 


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1 ‘‘(2) APPLICABLE RECOVERY PERIOD FOR RURAL

2 INVESTMENT PROPERTY.—For purposes of paragraph 

3 (1)— 

The applicable 

‘‘ ‘‘In the case of: recovery period is: 

3-year property ...................................................................... 2 years

5-year property ...................................................................... 3 years

7-year property ...................................................................... 4 years

10-year property .................................................................... 6 years

15-year property .................................................................... 9 years

20-year property .................................................................... 12 years

Nonresidential real property ................................................ 22 years.

4 ‘‘(3) QUALIFIED RURAL INVESTMENT PROPERTY

5 DEFINED.—For purposes of this subsection— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 rural investment property’ means property 

8 which is property described in the table in para9 graph (2) and which is— 

10 ‘‘(i) used by the taxpayer predomi11 nantly in the active conduct of a trade or 

12 business within a high out-migration coun13 ty, 

14 ‘‘(ii) not used or located outside such 

15 county on a regular basis, 

16 ‘‘(iii) not acquired (directly or indi17 rectly) by the taxpayer from a person who 

18 is related to the taxpayer (within the mean19 ing of section 465(b)(3)(C)), and 

20 ‘‘(iv) not property (or any portion 

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1 erating any racetrack or other facility used 

2 for gambling. 

3 ‘‘(B) HIGH OUT-MIGRATION COUNTY.—The 

4 term ‘high out-migration county’ means any 

5 county which— 

6 ‘‘(i) is outside a metropolitan statis7 tical area (defined as such by the Office of 

8 Management and Budget), and 

9 ‘‘(ii) during the 5-year periods 1990 

10 through 1994 and 1995 through 1999 had a 

11 net population loss. 

12 ‘‘(4) TERMINATION.—This subsection shall not 

13 apply to property placed in service after March 31, 

14 2008.’’. 

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

16 section shall apply to property placed in service after the 

17 date of the enactment of this Act, the original use of which 

18 begins with the taxpayer after such date. 

19 SEC. 517. EXTENSION OF INCREASED EXPENSING FOR 

20 QUALIFIED SECTION 179 GULF OPPORTUNITY 

21 ZONE PROPERTY. 

22 Paragraph (2) of section 1400N(e) (relating to quali23 fied section 179 Gulf Opportunity Zone property) is 

24 amended— 


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1 (1) by striking ‘‘this subsection, the term’’ and 

2 inserting ‘‘this subsection— 

3 ‘‘(A) IN GENERAL.—The term’’, and 

4 (2) by adding at the end the following new sub5 paragraph: 

6 ‘‘(B) EXTENSION FOR CERTAIN PROP7 ERTY.—In the case of property substantially all 

8 of the use of which is in one or more specified 

9 portions of the GO Zone (as defined by sub10 section (d)(6)), such term shall include section 

11 179 property (as so defined) which is described 

12 in subsection (d)(2), determined— 

13 ‘‘(i) without regard to subsection 

14 (d)(6), and 

15 ‘‘(ii) by substituting ‘2008’ for ‘2007’ 

16 in subparagraph (A)(v) thereof.’’. 

17 Subpart B—Subchapter S Provisions 

18 SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED 

19 AS PASSIVE INVESTMENT INCOME. 

20 (a) IN GENERAL.—Section 1362(d)(3) is amended by 

21 striking subparagraphs (B), (C), (D), (E), and (F) and in22 serting the following new subparagraph: 

23 ‘‘(B) PASSIVE INVESTMENT INCOME DE24 FINED.— 


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1 ‘‘(i) IN GENERAL.—Except as otherwise 

2 provided in this subparagraph, the term 

3 ‘passive investment income’ means gross re4 ceipts derived from royalties, rents, divi5 dends, interest, and annuities. 

6 ‘‘(ii) EXCEPTION FOR INTEREST ON

7 NOTES FROM SALES OF INVENTORY.—The 

8 term ‘passive investment income’ shall not 

9 include interest on any obligation acquired 

10 in the ordinary course of the corporation’s 

11 trade or business from its sale of property 

12 described in section 1221(a)(1). 

13 ‘‘(iii) TREATMENT OF CERTAIN LEND14 ING OR FINANCE COMPANIES.—If the S cor15 poration meets the requirements of section 

16 542(c)(6) for the taxable year, the term 

17 ‘passive investment income’ shall not in18 clude gross receipts for the taxable year 

19 which are derived directly from the active 

20 and regular conduct of a lending or finance 

21 business (as defined in section 542(d)(1)). 

22 ‘‘(iv) TREATMENT OF CERTAIN DIVI23 DENDS.—If an S corporation holds stock in 

24 a C corporation meeting the requirements of 

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1 ment income’ shall not include dividends 

2 from such C corporation to the extent such 

3 dividends are attributable to the earnings 

4 and profits of such C corporation derived 

5 from the active conduct of a trade or busi6 ness. 

7 ‘‘(v) EXCEPTION FOR BANKS, ETC.—In 

8 the case of a bank (as defined in section 

9 581) or a depository institution holding 

10 company (as defined in section 3(w)(1) of 

11 the Federal Deposit Insurance Act (12 

12 U.S.C. 1813(w)(1)), the term ‘passive in13 vestment income’ shall not include— 

14 ‘‘(I) interest income earned by 

15 such bank or company, or 

16 ‘‘(II) dividends on assets required 

17 to be held by such bank or company, 

18 including stock in the Federal Reserve 

19 Bank, the Federal Home Loan Bank, 

20 or the Federal Agricultural Mortgage 

21 Bank or participation certificates 

22 issued by a Federal Intermediate Cred23 it Bank.’’. 


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1 (b) CONFORMING AMENDMENT.—Clause (i) of section 

2 1042(c)(4)(A) is amended by striking ‘‘section 

3 1362(d)(3)(C)’’ and inserting ‘‘section 1362(d)(3)(B)’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to taxable years beginning after the date 

6 of the enactment of this Act. 

7 SEC. 522. TREATMENT OF BANK DIRECTOR SHARES. 

8 (a) IN GENERAL.—Section 1361 (defining S corpora9 tion) is amended by adding at the end the following new 

10 subsection: 

11 ‘‘(f) RESTRICTED BANK DIRECTOR STOCK.— 

12 ‘‘(1) IN GENERAL.—Restricted bank director 

13 stock shall not be taken into account as outstanding 

14 stock of the S corporation in applying this subchapter 

15 (other than section 1368(f)). 

16 ‘‘(2) RESTRICTED BANK DIRECTOR STOCK.—For 

17 purposes of this subsection, the term ‘restricted bank 

18 director stock’ means stock in a bank (as defined in 

19 section 581) or a depository institution holding com20 pany (as defined in section 3(w)(1) of the Federal De21 posit Insurance Act (12 U.S.C. 1813(w)(1)), if such 

22 stock— 

23 ‘‘(A) is required to be held by an individual 

24 under applicable Federal or State law in order 


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1 to permit such individual to serve as a director, 

2 and 

3 ‘‘(B) is subject to an agreement with such 

4 bank or company (or a corporation which con5 trols (within the meaning of section 368(c)) such 

6 bank or company) pursuant to which the holder 

7 is required to sell back such stock (at the same 

8 price as the individual acquired such stock) upon 

9 ceasing to hold the office of director. 

10 ‘‘(3) CROSS REFERENCE.— 

‘‘For treatment of certain distributions with respect to restricted bank director 

stock, see section 1368(f)’’. 

11 (b) DISTRIBUTIONS.—Section 1368 (relating to dis12 tributions) is amended by adding at the end the following 

13 new subsection: 

14 ‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—If a di15 rector receives a distribution (not in part or full payment 

16 in exchange for stock) from an S corporation with respect 

17 to any restricted bank director stock (as defined in section 

18 1361(f)), the amount of such distribution— 

19 ‘‘(1) shall be includible in gross income of the di20 rector, and 

21 ‘‘(2) shall be deductible by the corporation for the 

22 taxable year of such corporation in which or with 

23 which ends the taxable year in which such amount in 

24 included in the gross income of the director.’’. 


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1 (c) EFFECTIVE DATES.— 

2 (1) IN GENERAL.—The amendments made by 

3 this section shall apply to taxable years beginning 

4 after December 31, 2006. 

5 (2) SPECIAL RULE FOR TREATMENT AS SECOND

6 CLASS OF STOCK.—In the case of any taxable year be7 ginning after December 31, 1996, restricted bank di8 rector stock (as defined in section 1361(f) of the Inter9 nal Revenue Code of 1986, as added by this section) 

10 shall not be taken into account in determining wheth11 er an S corporation has more than 1 class of stock. 

12 SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE 

13 FROM THE RESERVE METHOD OF ACCOUNT14 ING ON BECOMING S CORPORATION. 

15 (a) IN GENERAL.—Section 1361, as amended by this 

16 Act, is amended by adding at the end the following new 

17 subsection: 

18 ‘‘(g) SPECIAL RULE FOR BANK REQUIRED TO CHANGE

19 FROM THE RESERVE METHOD OF ACCOUNTING ON BECOM20 ING S CORPORATION.—In the case of a bank which changes 

21 from the reserve method of accounting for bad debts de22 scribed in section 585 or 593 for its first taxable year for 

23 which an election under section 1362(a) is in effect, the 

24 bank may elect to take into account any adjustments under 


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1 section 481 by reason of such change for the taxable year 

2 immediately preceding such first taxable year.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to taxable years beginning after Decem5 ber 31, 2006. 

6 SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A 

7 QUALIFIED SUBCHAPTER S SUBSIDIARY. 

8 (a) IN GENERAL.—Subparagraph (C) of section 

9 1361(b)(3) (relating to treatment of terminations of quali10 fied subchapter S subsidiary status) is amended— 

11 (1) by striking ‘‘For purposes of this title,’’ and 

12 inserting the following: 

13 ‘‘(i) IN GENERAL.—For purposes of 

14 this title,’’, and 

15 (2) by inserting at the end the following new 

16 clause: 

17 ‘‘(ii) TERMINATION BY REASON OF

18 SALE OF STOCK.—If the failure to meet the 

19 requirements of subparagraph (B) is by rea20 son of the sale of stock of a corporation 

21 which is a qualified subchapter S sub22 sidiary, the sale of such stock shall be treat23 ed as if— 

24 ‘‘(I) the sale were a sale of an un25 divided interest in the assets of such 


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1 corporation (based on the percentage of 

2 the corporation’s stock sold), and 

3 ‘‘(II) the sale were followed by an 

4 acquisition by such corporation of all 

5 of its assets (and the assumption by 

6 such corporation of all of its liabilities) 

7 in a transaction to which section 351 

8 applies.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to taxable years beginning after Decem11 ber 31, 2006 . 

12 SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS AT13 TRIBUTABLE TO PRE-1983 YEARS FOR CER14 TAIN CORPORATIONS. 

15 In the case of a corporation which is— 

16 (1) described in section 1311(a)(1) of the Small 

17 Business Job Protection Act of 1996, and 

18 (2) not described in section 1311(a)(2) of such 

19 Act, 

20 the amount of such corporation’s accumulated earnings and 

21 profits (for the first taxable year beginning after the date 

22 of the enactment of this Act) shall be reduced by an amount 

23 equal to the portion (if any) of such accumulated earnings 

24 and profits which were accumulated in any taxable year 

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1 tion was an electing small business corporation under sub2 chapter S of the Internal Revenue Code of 1986. 

3 SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF 

4 AN ELECTING SMALL BUSINESS TRUST. 

5 (a) NO LOOK THROUGH FOR ELIGIBILITY PUR6 POSES.—Clause (v) of section 1361(c)(2)(B) is amended by 

7 adding at the end the following new sentence: ‘‘This clause 

8 shall not apply for purposes of subsection (b)(1)(C).’’. 

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

10 section shall take effect on the date of the enactment of this 

11 Act. 

12 SEC. 527. DEDUCTIBILITY OF INTEREST EXPENSE ON IN13 DEBTEDNESS INCURRED BY AN ELECTING 

14 SMALL BUSINESS TRUST TO ACQUIRE S COR15 PORATION STOCK. 

16 (a) IN GENERAL.—Subparagraph (C) of section 

17 641(c)(2) (relating to modifications) is amended by insert18 ing after clause (iii) the following new clause: 

19 ‘‘(iv) Any interest expense paid or ac20 crued on indebtedness incurred to acquire 

21 stock in an S corporation.’’. 

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

23 section shall apply to taxable years beginning after Decem24 ber 31, 2006. 


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1 PART II—REVENUE PROVISIONS 

2 SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING 

3 PROVISIONS OF THE AMERICAN JOBS CRE4 ATION ACT OF 2004. 

5 (a) LEASES TO FOREIGN ENTITIES.—Section 849(b) 

6 of the American Jobs Creation Act of 2004 is amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(5) LEASES TO FOREIGN ENTITIES.—In the case 

9 of tax-exempt use property leased to a tax-exempt en10 tity which is a foreign person or entity, the amend11 ments made by this part shall apply to taxable years 

12 beginning after December 31, 2006, with respect to 

13 leases entered into on or before March 12, 2004.’’. 

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

15 section shall take effect as if included in the enactment of 

16 the American Jobs Creation Act of 2004. 

17 SEC. 532. APPLICATION OF RULES TREATING INVERTED 

18 CORPORATIONS AS DOMESTIC CORPORA19 TIONS TO CERTAIN TRANSACTIONS OCCUR20 RING AFTER MARCH 20, 2002. 

21 (a) IN GENERAL.—Section 7874(b) (relating to in22 verted corporations treated as domestic corporations) is 

23 amended to read as follows: 

24 ‘‘(b) INVERTED CORPORATIONS TREATED AS DOMES25 TIC CORPORATIONS.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding section 

2 7701(a)(4), a foreign corporation shall be treated for 

3 purposes of this title as a domestic corporation if such 

4 corporation would be a surrogate foreign corporation 

5 if subsection (a)(2) were applied by substituting ‘80 

6 percent’ for ‘60 percent’. 

7 ‘‘(2) SPECIAL RULE FOR CERTAIN TRANSACTIONS

8 OCCURRING AFTER MARCH 20, 2002.— 

9 ‘‘(A) IN GENERAL.—If— 

10 ‘‘(i) paragraph (1) does not apply to a 

11 foreign corporation, but 

12 ‘‘(ii) paragraph (1) would apply to 

13 such corporation if, in addition to the sub14 stitution under paragraph (1), subsection 

15 (a)(2) were applied by substituting ‘March 

16 20, 2002’ for ‘March 4, 2003’ each place it 

17 appears, 

18 then paragraph (1) shall apply to such corpora19 tion but only with respect to taxable years of 

20 such corporation beginning after December 31, 

21 2006. 

22 ‘‘(B) SPECIAL RULES.—Subject to such 

23 rules as the Secretary may prescribe, in the case 

24 of a corporation to which paragraph (1) applies 

25 by reason of this paragraph— 


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1 ‘‘(i) the corporation shall be treated, as 

2 of the close of its last taxable year beginning 

3 before January 1, 2007, as having trans4 ferred all of its assets, liabilities, and earn5 ings and profits to a domestic corporation 

6 in a transaction with respect to which no 

7 tax is imposed under this title, 

8 ‘‘(ii) the bases of the assets transferred 

9 in the transaction to the domestic corpora10 tion shall be the same as the bases of the as11 sets in the hands of the foreign corporation, 

12 subject to any adjustments under this title 

13 for built-in losses, 

14 ‘‘(iii) the basis of the stock of any 

15 shareholder in the domestic corporation 

16 shall be the same as the basis of the stock 

17 of the shareholder in the foreign corporation 

18 for which it is treated as exchanged, and 

19 ‘‘(iv) the transfer of any earnings and 

20 profits by reason of clause (i) shall be dis21 regarded in determining any deemed divi22 dend or foreign tax creditable to the domes23 tic corporation with respect to such trans24 fer. 


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1 ‘‘(C) REGULATIONS.—The Secretary may 

2 prescribe such regulations as may be necessary 

3 or appropriate to carry out this paragraph, in4 cluding regulations to prevent the avoidance of 

5 the purposes of this paragraph.’’. 

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

7 section shall apply to taxable years beginning after Decem8 ber 31, 2006. 

9 SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES. 

10 (a) DISALLOWANCE OF DEDUCTION.— 

11 (1) IN GENERAL.—Section 162(g) (relating to 

12 treble damage payments under the antitrust laws) is 

13 amended— 

14 (A) by redesignating paragraphs (1) and 

15 (2) as subparagraphs (A) and (B), respectively, 

16 (B) by striking ‘‘If’’ and inserting: 

17 ‘‘(1) TREBLE DAMAGES.—If’’, and 

18 (C) by adding at the end the following new 

19 paragraph: 

20 ‘‘(2) PUNITIVE DAMAGES.—No deduction shall be 

21 allowed under this chapter for any amount paid or 

22 incurred for punitive damages in connection with 

23 any judgment in, or settlement of, any action. This 

24 paragraph shall not apply to punitive damages de25 scribed in section 104(c).’’. 


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1 (2) CONFORMING AMENDMENT.—The heading for 

2 section 162(g) is amended by inserting ‘‘OR PUNITIVE

3 DAMAGES’’ after ‘‘LAWS’’. 

4 (b) INCLUSION IN INCOME OF PUNITIVE DAMAGES

5 PAID BY INSURER OR OTHERWISE.— 

6 (1) IN GENERAL.—Part II of subchapter B of 

7 chapter 1 (relating to items specifically included in 

8 gross income) is amended by adding at the end the 

9 following new section: 

10 ‘‘SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSUR11 ANCE OR OTHERWISE. 

12 ‘‘Gross income shall include any amount paid to or 

13 on behalf of a taxpayer as insurance or otherwise by reason 

14 of the taxpayer’s liability (or agreement) to pay punitive 

15 damages.’’. 

16 (2) REPORTING REQUIREMENTS.—Section 6041 

17 (relating to information at source) is amended by 

18 adding at the end the following new subsection: 

19 ‘‘(h) SECTION TO APPLY TO PUNITIVE DAMAGES COM20 PENSATION.—This section shall apply to payments by a 

21 person to or on behalf of another person as insurance or 

22 otherwise by reason of the other person’s liability (or agree23 ment) to pay punitive damages.’’. 


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1 (3) CONFORMING AMENDMENT.—The table of sec2 tions for part II of subchapter B of chapter 1 is 

3 amended by adding at the end the following new item: 

‘‘Sec. 91. Punitive damages compensated by insurance or otherwise’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to damages paid or incurred on or after 

6 the date of the enactment of this Act. 

7 SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PEN8 ALTIES, AND OTHER AMOUNTS. 

9 (a) IN GENERAL.—Subsection (f) of section 162 (relat10 ing to trade or business expenses) is amended to read as 

11 follows: 

12 ‘‘(f) FINES, PENALTIES, AND OTHER AMOUNTS.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), no deduction otherwise allowable shall be 

15 allowed under this chapter for any amount paid or 

16 incurred (whether by suit, agreement, or otherwise) 

17 to, or at the direction of, a government or entity de18 scribed in paragraph (4) in relation to— 

19 ‘‘(A) the violation of any law, or 

20 ‘‘(B) an investigation or inquiry into the 

21 potential violation of any law which is initiated 

22 by such government or entity. 

23 ‘‘(2) EXCEPTION FOR AMOUNTS CONSTITUTING

24 RESTITUTION OR PAID TO COME INTO COMPLIANCE


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1 WITH LAW.—Paragraph (1) shall not apply to any 

2 amount which— 

3 ‘‘(A) the taxpayer establishes— 

4 ‘‘(i) constitutes restitution (or remedi5 ation of property) for damage or harm 

6 caused by, or which may be caused by, the 

7 violation of any law or the potential viola8 tion of any law, or 

9 ‘‘(ii) is paid to come into compliance 

10 with any law which was violated or in11 volved in the investigation or inquiry, and 

12 ‘‘(B) is identified as an amount described 

13 in clause (i) or (ii) of subparagraph (A), as the 

14 case may be, in the court order or settlement 

15 agreement, except that the requirement of this 

16 subparagraph shall not apply in the case of any 

17 settlement agreement which requires the taxpayer 

18 to pay or incur an amount not greater than 

19 $1,000,000. 

20 A taxpayer shall not meet the requirements of sub21 paragraph (A) solely by reason an identification 

22 under subparagraph (B). This paragraph shall not 

23 apply to any amount paid or incurred as reimburse24 ment to the government or entity for the costs of any 

25 investigation or litigation unless such amount is paid 


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1 or incurred for a cost or fee regularly charged for any 

2 routine audit or other customary review performed by 

3 the government or entity. 

4 ‘‘(3) EXCEPTION FOR AMOUNTS PAID OR IN5 CURRED AS THE RESULT OF CERTAIN COURT OR6 DERS.—Paragraph (1) shall not apply to any 

7 amount paid or incurred by order of a court in a suit 

8 in which no government or entity described in para9 graph (4) is a party. 

10 ‘‘(4) CERTAIN NONGOVERNMENTAL REGULATORY

11 ENTITIES.—An entity is described in this paragraph 

12 if it is— 

13 ‘‘(A) a nongovernmental entity which exer14 cises self-regulatory powers (including imposing 

15 sanctions) in connection with a qualified board 

16 or exchange (as defined in section 1256(g)(7)), or 

17 ‘‘(B) to the extent provided in regulations, 

18 a nongovernmental entity which exercises self19 regulatory powers (including imposing sanc20 tions) as part of performing an essential govern21 mental function. 

22 ‘‘(5) EXCEPTION FOR TAXES DUE.—Paragraph 

23 (1) shall not apply to any amount paid or incurred 

24 as taxes due.’’. 

25 (b) REPORTING OF DEDUCTIBLE AMOUNTS.— 


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1 (1) IN GENERAL.—Subpart B of part III of sub2 chapter A of chapter 61 is amended by inserting after 

3 section 6050V the following new section: 

4 ‘‘SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN 

5 FINES, PENALTIES, AND OTHER AMOUNTS. 

6 ‘‘(a) REQUIREMENTOF REPORTING.— 

7 ‘‘(1) IN GENERAL.—The appropriate official of 

8 any government or entity which is described in sec9 tion 162(f)(4) which is involved in a suit or agree10 ment described in paragraph (2) shall make a return 

11 in such form as determined by the Secretary setting 

12 forth— 

13 ‘‘(A) the amount required to be paid as a 

14 result of the suit or agreement to which para15 graph (1) of section 162(f) applies, 

16 ‘‘(B) any amount required to be paid as a 

17 result of the suit or agreement which constitutes 

18 restitution or remediation of property, and 

19 ‘‘(C) any amount required to be paid as a 

20 result of the suit or agreement for the purpose of 

21 coming into compliance with any law which was 

22 violated or involved in the investigation or in23 quiry. 

24 ‘‘(2) SUITOR AGREEMENTDESCRIBED.— 


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1 ‘‘(A) IN GENERAL.—A suit or agreement is 

2 described in this paragraph if— 

3 ‘‘(i) it is— 

4 ‘‘(I) a suit with respect to a viola5 tion of any law over which the govern6 ment or entity has authority and with 

7 respect to which there has been a court 

8 order, or 

9 ‘‘(II) an agreement which is en10 tered into with respect to a violation of 

11 any law over which the government or 

12 entity has authority, or with respect to 

13 an investigation or inquiry by the gov14 ernment or entity into the potential 

15 violation of any law over which such 

16 government or entity has authority, 

17 and 

18 ‘‘(ii) the aggregate amount involved in 

19 all court orders and agreements with respect 

20 to the violation, investigation, or inquiry is 

21 $600 or more. 

22 ‘‘(B) ADJUSTMENT OF REPORTING THRESH23 OLD.—The Secretary may adjust the $600 

24 amount in subparagraph (A)(ii) as necessary in 


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1 order to ensure the efficient administration of the 

2 internal revenue laws. 

3 ‘‘(3) TIME OF FILING.—The return required 

4 under this subsection shall be filed not later than— 

5 ‘‘(A) 30 days after the date on which a 

6 court order is issued with respect to the suit or 

7 the date the agreement is entered into, as the 

8 case may be, or 

9 ‘‘(B) the date specified by the Secretary. 

10 ‘‘(b) STATEMENTS TO BE FURNISHED TO INDIVIDUALS

11 INVOLVED IN THE SETTLEMENT.—Every person required to 

12 make a return under subsection (a) shall furnish to each 

13 person who is a party to the suit or agreement a written 

14 statement showing— 

15 ‘‘(1) the name of the government or entity, and 

16 ‘‘(2) the information supplied to the Secretary 

17 under subsection (a)(1). 

18 The written statement required under the preceding sen19 tence shall be furnished to the person at the same time the 

20 government or entity provides the Secretary with the infor21 mation required under subsection (a). 

22 ‘‘(c) APPROPRIATE OFFICIAL DEFINED.—For purposes 

23 of this section, the term ‘appropriate official’ means the offi24 cer or employee having control of the suit, investigation, 


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1 or inquiry or the person appropriately designated for pur2 poses of this section.’’. 

3 (2) CONFORMING AMENDMENT.—The table of sec4 tions for subpart B of part III of subchapter A of 

5 chapter 61 is amended by inserting after the item re6 lating to section 6050V the following new item: 

‘‘Sec. 6050W. Information with respect to certain fines, penalties, and other 

amounts’’. 

7 (c) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to amounts paid or incurred on or after 

9 the date of the enactment of this Act, except that such 

10 amendments shall not apply to amounts paid or incurred 

11 under any binding order or agreement entered into before 

12 such date. Such exception shall not apply to an order or 

13 agreement requiring court approval unless the approval 

14 was obtained before such date. 

15 SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF 

16 INDIVIDUALS. 

17 (a) IN GENERAL.—Subpart A of part II of subchapter 

18 N of chapter 1 is amended by inserting after section 877 

19 the following new section: 

20 ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION. 

21 ‘‘(a) GENERAL RULES.—For purposes of this sub22 title— 

23 ‘‘(1) MARK TO MARKET.—Except as provided in 

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1 triate to whom this section applies shall be treated as 

2 sold on the day before the expatriation date for its 

3 fair market value. 

4 ‘‘(2) RECOGNITION OF GAIN OR LOSS.—In the 

5 case of any sale under paragraph (1)— 

6 ‘‘(A) notwithstanding any other provision of 

7 this title, any gain arising from such sale shall 

8 be taken into account for the taxable year of the 

9 sale, and 

10 ‘‘(B) any loss arising from such sale shall 

11 be taken into account for the taxable year of the 

12 sale to the extent otherwise provided by this title, 

13 except that section 1091 shall not apply to any 

14 such loss. 

15 Proper adjustment shall be made in the amount of 

16 any gain or loss subsequently realized for gain or loss 

17 taken into account under the preceding sentence. 

18 ‘‘(3) EXCLUSION FOR CERTAIN GAIN.— 

19 ‘‘(A) IN GENERAL.—The amount which, but 

20 for this paragraph, would be includible in the 

21 gross income of any individual by reason of this 

22 section shall be reduced (but not below zero) by 

23 $600,000. For purposes of this paragraph, allo24 cable expatriation gain taken into account under 

25 subsection (f)(2) shall be treated in the same 


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1 manner as an amount required to be includible 

2 in gross income. 

3 ‘‘(B) COST-OF-LIVING ADJUSTMENT.— 

4 ‘‘(i) IN GENERAL.—In the case of an 

5 expatriation date occurring in any calendar 

6 year after 2007, the $600,000 amount under 

7 subparagraph (A) shall be increased by an 

8 amount equal to— 

9 ‘‘(I) such dollar amount, multi10 plied by 

11 ‘‘(II) the cost-of-living adjustment 

12 determined under section 1(f)(3) for 

13 such calendar year, determined by sub14 stituting ‘calendar year 2006’ for ‘cal15 endar year 1992’ in subparagraph (B) 

16 thereof. 

17 ‘‘(ii) ROUNDING RULES.—If any 

18 amount after adjustment under clause (i) is 

19 not a multiple of $1,000, such amount shall 

20 be rounded to the next lower multiple of 

21 $1,000. 

22 ‘‘(4) ELECTION TO CONTINUE TO BE TAXED AS

23 UNITED STATES CITIZEN.— 

24 ‘‘(A) IN GENERAL.—If a covered expatriate 

25 elects the application of this paragraph— 


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1 ‘‘(i) this section (other than this para2 graph and subsection (i)) shall not apply to 

3 the expatriate, but 

4 ‘‘(ii) in the case of property to which 

5 this section would apply but for such elec6 tion, the expatriate shall be subject to tax 

7 under this title in the same manner as if 

8 the individual were a United States citizen. 

9 ‘‘(B) REQUIREMENTS.—Subparagraph (A) 

10 shall not apply to an individual unless the indi11 vidual— 

12 ‘‘(i) provides security for payment of 

13 tax in such form and manner, and in such 

14 amount, as the Secretary may require, 

15 ‘‘(ii) consents to the waiver of any 

16 right of the individual under any treaty of 

17 the United States which would preclude as18 sessment or collection of any tax which may 

19 be imposed by reason of this paragraph, 

20 and 

21 ‘‘(iii) complies with such other require22 ments as the Secretary may prescribe. 

23 ‘‘(C) ELECTION.—An election under sub24 paragraph (A) shall apply to all property to 

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1 tion and, once made, shall be irrevocable. Such 

2 election shall also apply to property the basis of 

3 which is determined in whole or in part by ref4 erence to the property with respect to which the 

5 election was made. 

6 ‘‘(b) ELECTION TO DEFER TAX.— 

7 ‘‘(1) IN GENERAL.—If the taxpayer elects the ap8 plication of this subsection with respect to any prop9 erty treated as sold by reason of subsection (a), the 

10 payment of the additional tax attributable to such 

11 property shall be postponed until the due date of the 

12 return for the taxable year in which such property is 

13 disposed of (or, in the case of property disposed of in 

14 a transaction in which gain is not recognized in 

15 whole or in part, until such other date as the Sec16 retary may prescribe). 

17 ‘‘(2) DETERMINATION OF TAX WITH RESPECT TO

18 PROPERTY.—For purposes of paragraph (1), the addi19 tional tax attributable to any property is an amount 

20 which bears the same ratio to the additional tax im21 posed by this chapter for the taxable year solely by 

22 reason of subsection (a) as the gain taken into ac23 count under subsection (a) with respect to such prop24 erty bears to the total gain taken into account under 


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1 subsection (a) with respect to all property to which 

2 subsection (a) applies. 

3 ‘‘(3) TERMINATION OF POSTPONEMENT.—No tax 

4 may be postponed under this subsection later than the 

5 due date for the return of tax imposed by this chapter 

6 for the taxable year which includes the date of death 

7 of the expatriate (or, if earlier, the time that the secu8 rity provided with respect to the property fails to 

9 meet the requirements of paragraph (4), unless the 

10 taxpayer corrects such failure within the time speci11 fied by the Secretary). 

12 ‘‘(4) SECURITY.— 

13 ‘‘(A) IN GENERAL.—No election may be 

14 made under paragraph (1) with respect to any 

15 property unless adequate security is provided to 

16 the Secretary with respect to such property. 

17 ‘‘(B) ADEQUATE SECURITY.—For purposes 

18 of subparagraph (A), security with respect to 

19 any property shall be treated as adequate secu20 rity if— 

21 ‘‘(i) it is a bond in an amount equal 

22 to the deferred tax amount under paragraph 

23 (2) for the property, or 


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1 ‘‘(ii) the taxpayer otherwise establishes 

2 to the satisfaction of the Secretary that the 

3 security is adequate. 

4 ‘‘(5) WAIVER OF CERTAIN RIGHTS.—No election 

5 may be made under paragraph (1) unless the tax6 payer consents to the waiver of any right under any 

7 treaty of the United States which would preclude as8 sessment or collection of any tax imposed by reason 

9 of this section. 

10 ‘‘(6) ELECTIONS.—An election under paragraph 

11 (1) shall only apply to property described in the elec12 tion and, once made, is irrevocable. An election may 

13 be made under paragraph (1) with respect to an in14 terest in a trust with respect to which gain is re15 quired to be recognized under subsection (f)(1). 

16 ‘‘(7) INTEREST.—For purposes of section 6601— 

17 ‘‘(A) the last date for the payment of tax 

18 shall be determined without regard to the election 

19 under this subsection, and 

20 ‘‘(B) section 6621(a)(2) shall be applied by 

21 substituting ‘5 percentage points’ for ‘3 percent22 age points’ in subparagraph (B) thereof. 

23 ‘‘(c) COVERED EXPATRIATE.—For purposes of this sec24 tion— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the term ‘covered expatriate’ means an ex3 patriate. 

4 ‘‘(2) EXCEPTIONS.—An individual shall not be 

5 treated as a covered expatriate if— 

6 ‘‘(A) the individual— 

7 ‘‘(i) became at birth a citizen of the 

8 United States and a citizen of another 

9 country and, as of the expatriation date, 

10 continues to be a citizen of, and is taxed as 

11 a resident of, such other country, and 

12 ‘‘(ii) has not been a resident of the 

13 United States (as defined in section 

14 7701(b)(1)(A)(ii)) during the 5 taxable 

15 years ending with the taxable year during 

16 which the expatriation date occurs, or 

17 ‘‘(B)(i) the individual’s relinquishment of 

18 United States citizenship occurs before such individual attains age 181 19 ⁄2, and 

20 ‘‘(ii) the individual has been a resident of 

21 the United States (as so defined) for not more 

22 than 5 taxable years before the date of relin23 quishment. 

24 ‘‘(d) EXEMPT PROPERTY; SPECIAL RULES FOR PEN25 SION PLANS.— 


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1 ‘‘(1) EXEMPTPROPERTY.—This section shall not 

2 apply to the following: 

3 ‘‘(A) UNITED STATES REAL PROPERTY IN4 TERESTS.—Any United States real property in5 terest (as defined in section 897(c)(1)), other 

6 than stock of a United States real property hold7 ing corporation which does not, on the day before 

8 the expatriation date, meet the requirements of 

9 section 897(c)(2). 

10 ‘‘(B) SPECIFIED PROPERTY.—Any property 

11 or interest in property not described in subpara12 graph (A) which the Secretary specifies in regu13 lations. 

14 ‘‘(2) SPECIAL RULES FOR CERTAIN RETIREMENT

15 PLANS.— 

16 ‘‘(A) IN GENERAL.—If a covered expatriate 

17 holds on the day before the expatriation date any 

18 interest in a retirement plan to which this para19 graph applies— 

20 ‘‘(i) such interest shall not be treated 

21 as sold for purposes of subsection (a)(1), but 

22 ‘‘(ii) an amount equal to the present 

23 value of the expatriate’s nonforfeitable ac24 crued benefit shall be treated as having been 


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1 received by such individual on such date as 

2 a distribution under the plan. 

3 ‘‘(B) TREATMENT OF SUBSEQUENT DIS4 TRIBUTIONS.—In the case of any distribution on 

5 or after the expatriation date to or on behalf of 

6 the covered expatriate from a plan from which 

7 the expatriate was treated as receiving a dis8 tribution under subparagraph (A), the amount 

9 otherwise includible in gross income by reason of 

10 the subsequent distribution shall be reduced by 

11 the excess of the amount includible in gross in12 come under subparagraph (A) over any portion 

13 of such amount to which this subparagraph pre14 viously applied. 

15 ‘‘(C) TREATMENTOF SUBSEQUENTDIS16 TRIBUTIONS BY PLAN.—For purposes of this title, 

17 a retirement plan to which this paragraph ap18 plies, and any person acting on the plan’s behalf, 

19 shall treat any subsequent distribution described 

20 in subparagraph (B) in the same manner as 

21 such distribution would be treated without re22 gard to this paragraph. 

23 ‘‘(D) APPLICABLE PLANS.—This paragraph 

24 shall apply to— 


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1 ‘‘(i) any qualified retirement plan (as 

2 defined in section 4974(c)), 

3 ‘‘(ii) an eligible deferred compensation 

4 plan (as defined in section 457(b)) of an el5 igible employer described in section 

6 457(e)(1)(A), and 

7 ‘‘(iii) to the extent provided in regula8 tions, any foreign pension plan or similar 

9 retirement arrangements or programs. 

10 ‘‘(e) DEFINITIONS.—For purposes of this section— 

11 ‘‘(1) EXPATRIATE.—The term ‘expatriate’ 

12 means— 

13 ‘‘(A) any United States citizen who relin14 quishes citizenship, and 

15 ‘‘(B) any long-term resident of the United 

16 States who— 

17 ‘‘(i) ceases to be a lawful permanent 

18 resident of the United States (within the 

19 meaning of section 7701(b)(6)), or 

20 ‘‘(ii) commences to be treated as a resi21 dent of a foreign country under the provi22 sions of a tax treaty between the United 

23 States and the foreign country and who 

24 does not waive the benefits of such treaty 


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1 applicable to residents of the foreign coun2 try. 

3 ‘‘(2) EXPATRIATION DATE.—The term ‘expatria4 tion date’ means— 

5 ‘‘(A) the date an individual relinquishes 

6 United States citizenship, or 

7 ‘‘(B) in the case of a long-term resident of 

8 the United States, the date of the event described 

9 in clause (i) or (ii) of paragraph (1)(B). 

10 ‘‘(3) RELINQUISHMENTOF CITIZENSHIP.—A cit11 izen shall be treated as relinquishing United States 

12 citizenship on the earliest of— 

13 ‘‘(A) the date the individual renounces such 

14 individual’s United States nationality before a 

15 diplomatic or consular officer of the United 

16 States pursuant to paragraph (5) of section 

17 349(a) of the Immigration and Nationality Act 

18 (8 U.S.C. 1481(a)(5)), 

19 ‘‘(B) the date the individual furnishes to the 

20 United States Department of State a signed 

21 statement of voluntary relinquishment of United 

22 States nationality confirming the performance of 

23 an act of expatriation specified in paragraph 

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1 migration and Nationality Act (8 U.S.C. 

2 1481(a)(1)–(4)), 

3 ‘‘(C) the date the United States Department 

4 of State issues to the individual a certificate of 

5 loss of nationality, or 

6 ‘‘(D) the date a court of the United States 

7 cancels a naturalized citizen’s certificate of natu8 ralization. 

9 Subparagraph (A) or (B) shall not apply to any in10 dividual unless the renunciation or voluntary relin11 quishment is subsequently approved by the issuance to 

12 the individual of a certificate of loss of nationality by 

13 the United States Department of State. 

14 ‘‘(4) LONG-TERM RESIDENT.—The term ‘long15 term resident’ has the meaning given to such term by 

16 section 877(e)(2). 

17 ‘‘(f) SPECIAL RULES APPLICABLE TO BENEFICIARIES’ 

18 INTERESTS IN TRUST.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), if an individual is determined under para21 graph (3) to hold an interest in a trust on the day 

22 before the expatriation date— 

23 ‘‘(A) the individual shall not be treated as 

24 having sold such interest, 


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1 ‘‘(B) such interest shall be treated as a sep2 arate share in the trust, and 

3 ‘‘(C)(i) such separate share shall be treated 

4 as a separate trust consisting of the assets allo5 cable to such share, 

6 ‘‘(ii) the separate trust shall be treated as 

7 having sold its assets on the day before the expa8 triation date for their fair market value and as 

9 having distributed all of its assets to the indi10 vidual as of such time, and 

11 ‘‘(iii) the individual shall be treated as hav12 ing recontributed the assets to the separate trust. 

13 Subsection (a)(2) shall apply to any income, gain, or 

14 loss of the individual arising from a distribution de15 scribed in subparagraph (C)(ii). In determining the 

16 amount of such distribution, proper adjustments shall 

17 be made for liabilities of the trust allocable to an in18 dividual’s share in the trust. 

19 ‘‘(2) SPECIAL RULES FOR INTERESTS IN QUALI20 FIED TRUSTS.— 

21 ‘‘(A) IN GENERAL.—If the trust interest de22 scribed in paragraph (1) is an interest in a 

23 qualified trust— 

24 ‘‘(i) paragraph (1) and subsection (a) 

25 shall not apply, and 


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1 ‘‘(ii) in addition to any other tax im2 posed by this title, there is hereby imposed 

3 on each distribution with respect to such in4 terest a tax in the amount determined 

5 under subparagraph (B). 

6 ‘‘(B) AMOUNTOF TAX.—The amount of tax 

7 under subparagraph (A)(ii) shall be equal to the 

8 lesser of— 

9 ‘‘(i) the highest rate of tax imposed by 

10 section 1(e) for the taxable year which in11 cludes the day before the expatriation date, 

12 multiplied by the amount of the distribu13 tion, or 

14 ‘‘(ii) the balance in the deferred tax ac15 count immediately before the distribution 

16 determined without regard to any increases 

17 under subparagraph (C)(ii) after the 30th 

18 day preceding the distribution. 

19 ‘‘(C) DEFERRED TAX ACCOUNT.—For pur20 poses of subparagraph (B)(ii)— 

21 ‘‘(i) OPENING BALANCE.—The opening 

22 balance in a deferred tax account with re23 spect to any trust interest is an amount 

24 equal to the tax which would have been im25 posed on the allocable expatriation gain 


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1 with respect to the trust interest if such 

2 gain had been included in gross income 

3 under subsection (a). 

4 ‘‘(ii) INCREASE FOR INTEREST.—The 

5 balance in the deferred tax account shall be 

6 increased by the amount of interest deter7 mined (on the balance in the account at the 

8 time the interest accrues), for periods after 

9 the 90th day after the expatriation date, by 

10 using the rates and method applicable 

11 under section 6621 for underpayments of 

12 tax for such periods, except that section 

13 6621(a)(2) shall be applied by substituting 

14 ‘5 percentage points’ for ‘3 percentage 

15 points’ in subparagraph (B) thereof. 

16 ‘‘(iii) DECREASE FOR TAXES PRE17 VIOUSLY PAID.—The balance in the tax de18 ferred account shall be reduced— 

19 ‘‘(I) by the amount of taxes im20 posed by subparagraph (A) on any dis21 tribution to the person holding the 

22 trust interest, and 

23 ‘‘(II) in the case of a person hold24 ing a nonvested interest, to the extent 

25 provided in regulations, by the amount 


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1 of taxes imposed by subparagraph (A) 

2 on distributions from the trust with re3 spect to nonvested interests not held by 

4 such person. 

5 ‘‘(D) ALLOCABLE EXPATRIATION GAIN.—For 

6 purposes of this paragraph, the allocable expa7 triation gain with respect to any beneficiary’s 

8 interest in a trust is the amount of gain which 

9 would be allocable to such beneficiary’s vested 

10 and nonvested interests in the trust if the bene11 ficiary held directly all assets allocable to such 

12 interests. 

13 ‘‘(E) TAX DEDUCTED AND WITHHELD.— 

14 ‘‘(i) IN GENERAL.—The tax imposed by 

15 subparagraph (A)(ii) shall be deducted and 

16 withheld by the trustees from the distribu17 tion to which it relates. 

18 ‘‘(ii) EXCEPTION WHERE FAILURE TO

19 WAIVE TREATY RIGHTS.—If an amount may 

20 not be deducted and withheld under clause 

21 (i) by reason of the distributee failing to 

22 waive any treaty right with respect to such 

23 distribution— 

24 ‘‘(I) the tax imposed by subpara25 graph (A)(ii) shall be imposed on the 


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1 trust and each trustee shall be person2 ally liable for the amount of such tax, 

3 and 

4 ‘‘(II) any other beneficiary of the 

5 trust shall be entitled to recover from 

6 the distributee the amount of such tax 

7 imposed on the other beneficiary. 

8 ‘‘(F) DISPOSITION.—If a trust ceases to be 

9 a qualified trust at any time, a covered expa10 triate disposes of an interest in a qualified trust, 

11 or a covered expatriate holding an interest in a 

12 qualified trust dies, then, in lieu of the tax im13 posed by subparagraph (A)(ii), there is hereby 

14 imposed a tax equal to the lesser of— 

15 ‘‘(i) the tax determined under para16 graph (1) as if the day before the expatria17 tion date were the date of such cessation, 

18 disposition, or death, whichever is applica19 ble, or 

20 ‘‘(ii) the balance in the tax deferred ac21 count immediately before such date. 

22 Such tax shall be imposed on the trust and each 

23 trustee shall be personally liable for the amount 

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1 triate or the estate the amount of such tax im2 posed on the other beneficiary. 

3 ‘‘(G) DEFINITIONS AND SPECIAL RULES.— 

4 For purposes of this paragraph— 

5 ‘‘(i) QUALIFIED TRUST.—The term 

6 ‘qualified trust’ means a trust which is de7 scribed in section 7701(a)(30)(E). 

8 ‘‘(ii) VESTED INTEREST.—The term 

9 ‘vested interest’ means any interest which, 

10 as of the day before the expatriation date, is 

11 vested in the beneficiary. 

12 ‘‘(iii) NONVESTED INTEREST.—The 

13 term ‘nonvested interest’ means, with re14 spect to any beneficiary, any interest in a 

15 trust which is not a vested interest. Such 

16 interest shall be determined by assuming the 

17 maximum exercise of discretion in favor of 

18 the beneficiary and the occurrence of all 

19 contingencies in favor of the beneficiary. 

20 ‘‘(iv) ADJUSTMENTS.—The Secretary 

21 may provide for such adjustments to the 

22 bases of assets in a trust or a deferred tax 

23 account, and the timing of such adjust24 ments, in order to ensure that gain is taxed 

25 only once. 


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1 ‘‘(v) COORDINATION WITH RETIREMENT

2 PLAN RULES.—This subsection shall not 

3 apply to an interest in a trust which is 

4 part of a retirement plan to which sub5 section (d)(2) applies. 

6 ‘‘(3) DETERMINATION OF BENEFICIARIES’ INTER7 ESTIN TRUST.— 

8 ‘‘(A) DETERMINATIONS UNDER PARAGRAPH

9 (1).—For purposes of paragraph (1), a bene10 ficiary’s interest in a trust shall be based upon 

11 all relevant facts and circumstances, including 

12 the terms of the trust instrument and any letter 

13 of wishes or similar document, historical pat14 terns of trust distributions, and the existence of 

15 and functions performed by a trust protector or 

16 any similar adviser. 

17 ‘‘(B) OTHER DETERMINATIONS.—For pur18 poses of this section— 

19 ‘‘(i) CONSTRUCTIVE OWNERSHIP.—If a 

20 beneficiary of a trust is a corporation, part21 nership, trust, or estate, the shareholders, 

22 partners, or beneficiaries shall be deemed to 

23 be the trust beneficiaries for purposes of this 

24 section. 


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1 ‘‘(ii) TAXPAYER RETURN POSITION.—A 

2 taxpayer shall clearly indicate on its in3 come tax return— 

4 ‘‘(I) the methodology used to de5 termine that taxpayer’s trust interest 

6 under this section, and 

7 ‘‘(II) if the taxpayer knows (or 

8 has reason to know) that any other 

9 beneficiary of such trust is using a dif10 ferent methodology to determine such 

11 beneficiary’s trust interest under this 

12 section. 

13 ‘‘(g) TERMINATION OF DEFERRALS, ETC.—In the case 

14 of any covered expatriate, notwithstanding any other provi15 sion of this title— 

16 ‘‘(1) any period during which recognition of in17 come or gain is deferred shall terminate on the day 

18 before the expatriation date, and 

19 ‘‘(2) any extension of time for payment of tax 

20 shall cease to apply on the day before the expatriation 

21 date and the unpaid portion of such tax shall be due 

22 and payable at the time and in the manner pre23 scribed by the Secretary. 

24 ‘‘(h) IMPOSITION OF TENTATIVE TAX.— 


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1 ‘‘(1) IN GENERAL.—If an individual is required 

2 to include any amount in gross income under sub3 section (a) for any taxable year, there is hereby im4 posed, immediately before the expatriation date, a tax 

5 in an amount equal to the amount of tax which 

6 would be imposed if the taxable year were a short tax7 able year ending on the expatriation date. 

8 ‘‘(2) DUE DATE.—The due date for any tax im9 posed by paragraph (1) shall be the 90th day after the 

10 expatriation date. 

11 ‘‘(3) TREATMENT OF TAX.—Any tax paid under 

12 paragraph (1) shall be treated as a payment of the 

13 tax imposed by this chapter for the taxable year to 

14 which subsection (a) applies. 

15 ‘‘(4) DEFERRAL OF TAX.—The provisions of sub16 section (b) shall apply to the tax imposed by this sub17 section to the extent attributable to gain includible in 

18 gross income by reason of this section. 

19 ‘‘(i) SPECIAL LIENS FOR DEFERRED TAX AMOUNTS.— 

20 ‘‘(1) IMPOSITION OF LIEN.— 

21 ‘‘(A) IN GENERAL.—If a covered expatriate 

22 makes an election under subsection (a)(4) or (b) 

23 which results in the deferral of any tax imposed 

24 by reason of subsection (a), the deferred amount 

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1 dition to tax, assessable penalty, and costs at2 tributable to the deferred amount) shall be a lien 

3 in favor of the United States on all property of 

4 the expatriate located in the United States (with5 out regard to whether this section applies to the 

6 property). 

7 ‘‘(B) DEFERRED AMOUNT.—For purposes of 

8 this subsection, the deferred amount is the 

9 amount of the increase in the covered expatri10 ate’s income tax which, but for the election under 

11 subsection (a)(4) or (b), would have occurred by 

12 reason of this section for the taxable year includ13 ing the expatriation date. 

14 ‘‘(2) PERIOD OF LIEN.—The lien imposed by this 

15 subsection shall arise on the expatriation date and 

16 continue until— 

17 ‘‘(A) the liability for tax by reason of this 

18 section is satisfied or has become unenforceable 

19 by reason of lapse of time, or 

20 ‘‘(B) it is established to the satisfaction of 

21 the Secretary that no further tax liability may 

22 arise by reason of this section. 

23 ‘‘(3) CERTAIN RULES APPLY.—The rules set forth 

24 in paragraphs (1), (3), and (4) of section 6324A(d) 

25 shall apply with respect to the lien imposed by this 


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1 subsection as if it were a lien imposed by section 

2 6324A. 

3 ‘‘(j) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as may be necessary or appropriate to 

5 carry out the purposes of this section.’’. 

6 (b) INCLUSION IN INCOME OF GIFTS AND BEQUESTS

7 RECEIVED BY UNITED STATES CITIZENS AND RESIDENTS

8 FROM EXPATRIATES.—Section 102 (relating to gifts, etc. 

9 not included in gross income) is amended by adding at the 

10 end the following new subsection: 

11 ‘‘(d) GIFTS AND INHERITANCES FROM COVERED EX12 PATRIATES.— 

13 ‘‘(1) TREATMENT OF GIFTS AND INHERIT14 ANCES.— 

15 ‘‘(A) IN GENERAL.—Subsection (a) shall not 

16 exclude from gross income the value of any prop17 erty acquired by gift, bequest, devise, or inherit18 ance from a covered expatriate after the expa19 triation date. 

20 ‘‘(B) DETERMINATION OF BASIS.—Notwith21 standing sections 1015 or 1022, the basis of any 

22 property described in subparagraph (A) in the 

23 hands of the donee or the person acquiring such 

24 property from the decedent shall be equal to the 


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1 fair market value of the property at the time of 

2 the gift, bequest, devise, or inheritance. 

3 ‘‘(2) EXCEPTIONS FOR TRANSFERS OTHERWISE

4 SUBJECT TO ESTATE OR GIFT TAX.—Paragraph (1) 

5 shall not apply to any property if either— 

6 ‘‘(A) the gift, bequest, devise, or inheritance 

7 is— 

8 ‘‘(i) shown on a timely filed return of 

9 tax imposed by chapter 12 as a taxable gift 

10 by the covered expatriate, or 

11 ‘‘(ii) included in the gross estate of the 

12 covered expatriate for purposes of chapter 

13 11 and shown on a timely filed return of 

14 tax imposed by chapter 11 of the estate of 

15 the covered expatriate, or 

16 ‘‘(B) no such return was timely filed but no 

17 such return would have been required to be filed 

18 even if the covered expatriate were a citizen or 

19 long-term resident of the United States. 

20 ‘‘(3) DEFINITIONS.—For purposes of this sub21 section, any term used in this subsection which is also 

22 used in section 877A shall have the same meaning as 

23 when used in section 877A.’’. 


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1 (c) DEFINITION OF TERMINATION OF UNITED STATES

2 CITIZENSHIP.—Section 7701(a) is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(50) TERMINATION OF UNITED STATES CITIZEN5 SHIP.— 

6 ‘‘(A) IN GENERAL.—An individual shall not 

7 cease to be treated as a United States citizen be8 fore the date on which the individual’s citizen9 ship is treated as relinquished under section 

10 877A(e)(3). 

11 ‘‘(B) DUAL CITIZENS.—Under regulations 

12 prescribed by the Secretary, subparagraph (A) 

13 shall not apply to an individual who became at 

14 birth a citizen of the United States and a citizen 

15 of another country.’’. 

16 (d) INELIGIBILITY FOR VISA OR ADMISSION TO

17 UNITED STATES.— 

18 (1) IN GENERAL.—Section 212(a)(10)(E) of the 

19 Immigration and Nationality Act (8 U.S.C. 

20 1182(a)(10)(E)) is amended to read as follows: 

21 ‘‘(E) FORMER CITIZENS NOT IN COMPLI22 ANCE WITH EXPATRIATION REVENUE PROVI23 SIONS.—Any alien who is a former citizen of the 

24 United States who relinquishes United States 

25 citizenship (within the meaning of section 


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1 877A(e)(3) of the Internal Revenue Code of 1986) 

2 and who is not in compliance with section 877A 

3 of such Code (relating to expatriation) is inad4 missible.’’. 

5 (2) AVAILABILITY OF INFORMATION.— 

6 (A) IN GENERAL.—Section 6103(l) (relating 

7 to disclosure of returns and return information 

8 for purposes other than tax administration) is 

9 amended by adding at the end the following new 

10 paragraph: 

11 ‘‘(21) DISCLOSURE TO DENY VISA OR ADMISSION

12 TO CERTAIN EXPATRIATES.—Upon written request of 

13 the Attorney General or the Attorney General’s dele14 gate, the Secretary shall disclose whether an indi15 vidual is in compliance with section 877A (and if not 

16 in compliance, any items of noncompliance) to offi17 cers and employees of the Federal agency responsible 

18 for administering section 212(a)(10)(E) of the Immi19 gration and Nationality Act solely for the purpose of, 

20 and to the extent necessary in, administering such 

21 section 212(a)(10)(E).’’. 

22 (B) SAFEGUARDS.—Section 6103(p)(4) (re23 lating to safeguards) is amended by striking ‘‘or 

24 (20)’’ each place it appears and inserting ‘‘(20), 

25 or (21)’’. 


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1 (3) EFFECTIVE DATES.—The amendments made 

2 by this subsection shall apply to individuals who re3 linquish United States citizenship on or after the date 

4 of the enactment of this Act. 

5 (e) CONFORMING AMENDMENTS.— 

6 (1) Section 877 is amended by adding at the end 

7 the following new subsection: 

8 ‘‘(h) APPLICATION.—This section shall not apply to an 

9 expatriate (as defined in section 877A(e)) whose expatria10 tion date (as so defined) occurs on or after the date of the 

11 enactment of this subsection.’’. 

12 (2) Section 2107 is amended by adding at the 

13 end the following new subsection: 

14 ‘‘(f) APPLICATION.—This section shall not apply to 

15 any expatriate subject to section 877A.’’. 

16 (3) Section 2501(a)(3) is amended by adding at 

17 the end the following new subparagraph: 

18 ‘‘(C) APPLICATION.—This paragraph shall 

19 not apply to any expatriate subject to section 

20 877A.’’. 

21 (4) Section 6039G(a) is amended by inserting 

22 ‘‘or 877A’’ after ‘‘section 877(b)’’. 

23 (5) The second sentence of section 6039G(d) is 

24 amended by inserting ‘‘or who relinquishes United 


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1 States citizenship (within the meaning of section 

2 877A(e)(3))’’ after ‘‘section 877(a))’’. 

3 (f) CLERICAL AMENDMENT.—The table of sections for 

4 subpart A of part II of subchapter N of chapter 1 is amend5 ed by inserting after the item relating to section 877 the 

6 following new item: 

‘‘Sec. 877A. Tax responsibilities of expatriation’’. 

7 (g) EFFECTIVE DATE.— 

8 (1) IN GENERAL.—Except as provided in this 

9 subsection, the amendments made by this section shall 

10 apply to expatriates (within the meaning of section 

11 877A(e) of the Internal Revenue Code of 1986, as 

12 added by this section) whose expatriation date (as so 

13 defined) occurs on or after the date of the enactment 

14 of this Act. 

15 (2) GIFTS AND BEQUESTS.—Section 102(d) of 

16 the Internal Revenue Code of 1986 (as added by sub17 section (b)) shall apply to gifts and bequests received 

18 on or after the date of the enactment of this Act, from 

19 an individual or the estate of an individual whose ex20 patriation date (as so defined) occurs after such date. 

21 (3) DUE DATE FOR TENTATIVE TAX.—The due 

22 date under section 877A(h)(2) of the Internal Revenue 

23 Code of 1986, as added by this section, shall in no 

24 event occur before the 90th day after the date of the 

25 enactment of this Act. 


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1 SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY 

2 BE DEFERRED UNDER NONQUALIFIED DE3 FERRED COMPENSATION ARRANGEMENTS. 

4 (a) IN GENERAL.—Section 409A(a) of the Internal 

5 Revenue Code of 1986 (relating to inclusion of gross income 

6 under nonqualified deferred compensation plans) is amend7 ed— 

8 (1) by striking ‘‘and (4)’’ in subclause (I) of 

9 paragraph (1)(A)(i) and inserting ‘‘(4), and (5)’’, 

10 and 

11 (2) by adding at the end the following new para12 graph: 

13 ‘‘(5) ANNUAL LIMITATION ON AGGREGATE DE14 FERRED AMOUNTS.— 

15 ‘‘(A) LIMITATION.—The requirements of this 

16 paragraph are met if the plan provides that the 

17 aggregate amount of compensation which is de18 ferred for any taxable year with respect to a par19 ticipant under the plan may not exceed the ap20 plicable dollar amount for the taxable year. 

21 ‘‘(B) INCLUSION OF FUTURE EARNINGS.—If 

22 an amount is includible under paragraph (1) in 

23 the gross income of a participant for any taxable 

24 year by reason of any failure to meet the require25 ments of this paragraph, any income (whether 

26 actual or notional) for any subsequent taxable 


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1 year shall be included in gross income under 

2 paragraph (1)(A) in such subsequent taxable 

3 year to the extent such income— 

4 ‘‘(i) is attributable to compensation (or 

5 income attributable to such compensation) 

6 required to be included in gross income by 

7 reason of such failure (including by reason 

8 of this subparagraph), and 

9 ‘‘(ii) is not subject to a substantial risk 

10 of forfeiture and has not been previously in11 cluded in gross income. 

12 ‘‘(C) AGGREGATION RULE.—For purposes of 

13 this paragraph, all nonqualified deferred com14 pensation plans maintained by all employers 

15 treated as a single employer under subsection 

16 (d)(6) shall be treated as 1 plan. 

17 ‘‘(D) APPLICABLE DOLLAR AMOUNT.—For 

18 purposes of this paragraph— 

19 ‘‘(i) IN GENERAL.—The term ‘applica20 ble dollar amount’ means, with respect to 

21 any participant, the lesser of— 

22 ‘‘(I) the average annual com23 pensation which was payable during 

24 the base period to the participant by 

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1 qualified deferred compensation plan 

2 (or any predecessor of the employer) 

3 and which was includible in the par4 ticipant’s gross income for taxable 

5 years in the base period, or 

6 ‘‘(II) $1,000,000. 

7 ‘‘(ii) BASE PERIOD.— 

8 ‘‘(I) IN GENERAL.—The term ‘base 

9 period’ means, with respect to any 

10 computation year, the 5-taxable year 

11 period ending with the taxable year 

12 preceding the computation year. 

13 ‘‘(II) ELECTIONS MADE BEFORE

14 COMPUTATION YEAR.—If, before the be15 ginning of the computation year, an 

16 election described in paragraph (4)(B) 

17 is made by the participant to have 

18 compensation for services performed in 

19 the computation year deferred under a 

20 nonqualified deferred compensation 

21 plan, the base period shall be the 5-tax22 able year period ending with the tax23 able year preceding the taxable year in 

24 which the election is made. 


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1 ‘‘(III) COMPUTATION YEAR.—For 

2 purposes of this clause, the term ‘com3 putation year’ means any taxable year 

4 of the participant for which the limita5 tion under subparagraph (A) is being 

6 determined. 

7 ‘‘(IV) SPECIAL RULE FOR EM8 PLOYEES OF LESS THAN 5 YEARS.—If 

9 a participant did not perform services 

10 for the employer maintaining the non11 qualified deferred compensation plan 

12 (or any predecessor of the employer) 

13 during the entire 5-taxable year period 

14 referred to in subparagraph (A) or (B), 

15 only the portion of such period during 

16 which the participant performed such 

17 services shall be taken into account.’’. 

18 (b) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—The amendments made by 

20 this section shall apply to taxable years beginning 

21 after December 31, 2006, except that— 

22 (A) the amendments shall only apply to 

23 amounts deferred after December 31, 2006 (and 

24 to earnings on such amounts), and 


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1 (B) taxable years beginning on or before 

2 December 31, 2006, shall be taken into account 

3 in determining the average annual compensation 

4 of a participant during any base period for pur5 poses of section 409A(a)(5)(D) of the Internal 

6 Revenue Code of 1986 (as added by such amend7 ments). 

8 (2) GUIDANCE RELATING TO CERTAIN EXISTING

9 ARRANGEMENTS.—Not later than 60 days after the 

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

11 Treasury shall issue guidance providing a limited pe12 riod during which a nonqualified deferred compensa13 tion plan adopted before December 31, 2006, may, 

14 without violating the requirements of section 409A(a) 

15 of such Code, be amended— 

16 (A) to provide that a participant may, no 

17 later than December 31, 2007, cancel or modify 

18 an outstanding deferral election with regard to 

19 all or a portion of amounts deferred after Decem20 ber 31, 2006, to the extent necessary for the plan 

21 to meet the requirements of section 409A(a)(5) of 

22 such Code (as added by the amendments made by 

23 this section), but only if amounts subject to the 

24 cancellation or modification are, to the extent 

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1 ible in income of the participant when no longer 

2 subject to substantial risk of forfeiture, and 

3 (B) to conform to the requirements of sec4 tion 409A(a)(5) of such Code (as added by the 

5 amendments made by this section) with regard 

6 to amounts deferred after December 31, 2006. 

7 SEC. 537. MODIFICATION OF CRIMINAL PENALTIES FOR 

8 WILLFUL FAILURES INVOLVING TAX PAY9 MENTS AND FILING REQUIREMENTS. 

10 (a) INCREASE IN PENALTY FOR ATTEMPT TO EVADE

11 OR DEFEAT TAX.—Section 7201 (relating to attempt to 

12 evade or defeat tax) is amended— 

13 (1) by striking ‘‘$100,000’’ and inserting 

14 ‘‘$500,000’’, 

15 (2) by striking ‘‘$500,000’’ and inserting 

16 ‘‘$1,000,000’’, and 

17 (3) by striking ‘‘5 years’’ and inserting ‘‘10 

18 years’’. 

19 (b) MODIFICATION OF PENALTIES FOR WILLFUL FAIL20 URE TO FILE RETURN, SUPPLY INFORMATION, OR PAY

21 TAX.— 

22 (1) IN GENERAL.—Section 7203 (relating to will23 ful failure to file return, supply information, or pay 

24 tax) is amended— 

25 (A) in the first sentence— 


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1 (i) by striking ‘‘Any person’’ and in2 serting the following: 

3 ‘‘(a) IN GENERAL.—Any person’’, and 

4 (ii) by striking ‘‘$25,000’’ and insert5 ing ‘‘$50,000’’, 

6 (B) in the third sentence, by striking ‘‘sec7 tion’’ and inserting ‘‘subsection’’, and 

8 (C) by adding at the end the following new 

9 subsection: 

10 ‘‘(b) AGGRAVATED FAILURE TO FILE.— 

11 ‘‘(1) IN GENERAL.—In the case of any failure de12 scribed in paragraph (2), the first sentence of sub13 section (a) shall be applied by substituting— 

14 ‘‘(A) ‘felony’ for ‘misdemeanor’, 

15 ‘‘(B) ‘$250,000 ($500,000’ for ‘$50,000 

16 ($100,000’, and 

17 ‘‘(C) ‘5 years’ for ‘1 year’. 

18 ‘‘(2) FAILURE DESCRIBED.—A failure described 

19 in this paragraph is— 

20 ‘‘(A) a failure to make a return described in 

21 subsection (a) for any 3 taxable years occurring 

22 during any period of 5 consecutive taxable years 

23 if the aggregate tax liability for such period is 

24 not less than $50,000, or 


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1 ‘‘(B) a failure to make a return if the tax 

2 liability giving rise to the requirement to make 

3 such return is attributable to an activity which 

4 is a felony under any State or Federal law.’’. 

5 (2) PENALTY MAY BE APPLIED IN ADDITION TO

6 OTHER PENALTIES.—Section 7204 (relating to fraud7 ulent statement or failure to make statement to em8 ployees) is amended by striking ‘‘the penalty provided 

9 in section 6674’’ and inserting ‘‘the penalties pro10 vided in sections 6674 and 7203(b)’’. 

11 (c) FRAUD AND FALSE STATEMENTS.—Section 7206 

12 (relating to fraud and false statements) is amended— 

13 (1) by striking ‘‘$100,000’’ and inserting 

14 ‘‘$500,000’’, 

15 (2) by striking ‘‘$500,000’’ and inserting 

16 ‘‘$1,000,000’’, and 

17 (3) by striking ‘‘3 years’’ and inserting ‘‘5 

18 years’’. 

19 (d) INCREASE IN MONETARY LIMITATION FOR UNDER20 PAYMENTOR OVERPAYMENTOF TAX DUE TO FRAUD.—Sec21 tion 7206 (relating to fraud and false statements), as 

22 amended by subsection (a)(3), is amended— 

23 (1) by striking ‘‘Any person who—’’ and insert24 ing ‘‘(a) IN GENERAL.—Any person who—’’, and 


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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(b) INCREASE IN MONETARY LIMITATION FOR UN4 DERPAYMENTOR OVERPAYMENTOF TAX DUE TO FRAUD.— 

5 If any portion of any underpayment (as defined in section 

6 6664(a)) or overpayment (as defined in section 6401(a)) of 

7 tax required to be shown on a return is attributable to 

8 fraudulent action described in subsection (a), the applicable 

9 dollar amount under subsection (a) shall in no event be less 

10 than an amount equal to such portion. A rule similar to 

11 the rule under section 6663(b) shall apply for purposes of 

12 determining the portion so attributable.’’. 

13 (e) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to actions, and failures to act, occurring 

15 after the date of the enactment of this Act. 

16 SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND 

17 INTEREST ON UNDERPAYMENTS RELATED TO 

18 CERTAIN OFFSHORE FINANCIAL ARRANGE19 MENTS. 

20 (a) DETERMINATION OF PENALTY.— 

21 (1) IN GENERAL.—Notwithstanding any other 

22 provision of law, in the case of an applicable tax23 payer— 

24 (A) the determination as to whether any in25 terest or applicable penalty is to be imposed with 


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1 respect to any arrangement described in para2 graph (2), or to any underpayment of Federal 

3 income tax attributable to items arising in con4 nection with any such arrangement, shall be 

5 made without regard to the rules of subsections 

6 (b), (c), and (d) of section 6664 of the Internal 

7 Revenue Code of 1986, and 

8 (B) if any such interest or applicable pen9 alty is imposed, the amount of such interest or 

10 penalty shall be equal to twice that determined 

11 without regard to this section. 

12 (2) APPLICABLE TAXPAYER.—For purposes of 

13 this subsection— 

14 (A) IN GENERAL.—The term ‘‘applicable 

15 taxpayer’’ means a taxpayer which— 

16 (i) has underreported its United States 

17 income tax liability with respect to any 

18 item which directly or indirectly involves— 

19 (I) any financial arrangement 

20 which in any manner relies on the use 

21 of offshore payment mechanisms (in22 cluding credit, debit, or charge cards) 

23 issued by banks or other entities in for24 eign jurisdictions, or 


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1 (II) any offshore financial ar2 rangement (including any arrange3 ment with foreign banks, financial in4 stitutions, corporations, partnerships, 

5 trusts, or other entities), and 

6 (ii) has neither signed a closing agree7 ment pursuant to the Voluntary Offshore 

8 Compliance Initiative established by the De9 partment of the Treasury under Revenue 

10 Procedure 2003–11 nor voluntarily dis11 closed its participation in such arrange12 ment by notifying the Internal Revenue 

13 Service of such arrangement prior to the 

14 issue being raised by the Internal Revenue 

15 Service during an examination. 

16 (B) AUTHORITY TO WAIVE.—The Secretary 

17 of the Treasury or the Secretary’s delegate may 

18 waive the application of paragraph (1) to any 

19 taxpayer if the Secretary or the Secretary’s dele20 gate determines that the use of such offshore pay21 ment mechanisms is incidental to the trans22 action and, in addition, in the case of a trade 

23 or business, such use is conducted in the ordi24 nary course of the type of trade or business of the 

25 taxpayer. 


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1 (C) ISSUES RAISED.—For purposes of sub2 paragraph (A)(ii), an item shall be treated as an 

3 issue raised during an examination if the indi4 vidual examining the return— 

5 (i) communicates to the taxpayer 

6 knowledge about the specific item, or 

7 (ii) has made a request to the taxpayer 

8 for information and the taxpayer could not 

9 make a complete response to that request 

10 without giving the examiner knowledge of 

11 the specific item. 

12 (b) APPLICABLE PENALTY.—For purposes of this sec13 tion, the term ‘‘applicable penalty’’ means any penalty, ad14 dition to tax, or fine imposed under chapter 68 of the Inter15 nal Revenue Code of 1986. 

16 (c) EFFECTIVE DATE.—The provisions of this section 

17 shall apply to interest, penalties, additions to tax, and fines 

18 with respect to any taxable year if, as of the date of the 

19 enactment of this Act, the assessment of any tax, penalty, 

20 or interest with respect to such taxable year is not prevented 

21 by the operation of any law or rule of law. 

22 SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND 

23 MONEY ORDERS. 

24 (a) IN GENERAL.—Section 6657 (relating to bad 

25 checks) is amended— 


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1 (1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, 

2 and 

3 (2) by striking ‘‘$15’’ and inserting ‘‘$25’’. 

4 (b) EFFECTIVE DATE.—The amendments made by this 

5 section apply to checks or money orders received after the 

6 date of the enactment of this Act. 

7 SEC. 540. TREATMENT OF CONTINGENT PAYMENT CON8 VERTIBLE DEBT INSTRUMENTS. 

9 (a) IN GENERAL.—Section 1275(d) (relating to regula10 tion authority) is amended— 

11 (1) by striking ‘‘The Secretary’’ and inserting 

12 the following: 

13 ‘‘(1) IN GENERAL.—The Secretary’’, and 

14 (2) by adding at the end the following new para15 graph: 

16 ‘‘(2) TREATMENT OF CONTINGENT PAYMENT CON17 VERTIBLE DEBT.— 

18 ‘‘(A) IN GENERAL.—In the case of a debt in19 strument which— 

20 ‘‘(i) is convertible into stock of the 

21 issuing corporation, into stock or debt of a 

22 related party (within the meaning of section 

23 267(b) or 707(b)(1)), or into cash or other 

24 property in an amount equal to the approx25 imate value of such stock or debt, and 


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1 ‘‘(ii) provides for 1 or more contingent 

2 payments, 

3 any regulations which require original issue dis4 count to be determined by reference to the com5 parable yield of a fixed-rate debt instrument 

6 shall be applied as if the regulations require that 

7 such comparable yield be determined by reference 

8 to a fixed-rate debt instrument which is convert9 ible into stock. 

10 ‘‘(B) SPECIAL RULE.—For purposes of sub11 paragraph (A), the comparable yield shall be de12 termined without taking into account the yield 

13 resulting from the conversion of a debt instru14 ment into stock.’’. 

15 (b) CROSS REFERENCE.—Section 163(e)(6) (relating 

16 to cross references) is amended by adding at the end the 

17 following: 

18 ‘‘For the treatment of contingent payment 

19 convertible debt, see section 1275(d)(2).’’. 

20 (c) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to debt instruments issued on or after 

22 the date of the enactment of this Act. 


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1 SEC. 541. EXTENSION OF IRS USER FEES. 

2 Subsection (c) of section 7528 (relating to Internal 

3 Revenue Service user fees) is amended by striking ‘‘Sep4 tember 30, 2014’’ and inserting ‘‘September 30, 2016’’. 

5 SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS 

6 PROCEDURES FOR EMPLOYMENT TAX LIABIL7 ITIES. 

8 (a) IN GENERAL.—Section 6330(f) (relating to jeop9 ardy and State refund collection) is amended— 

10 (1) by striking ‘‘; or’’ at the end of paragraph 

11 (1) and inserting a comma, 

12 (2) by adding ‘‘or’’ at the end of paragraph (2), 

13 and 

14 (3) by inserting after paragraph (2) the fol15 lowing new paragraph: 

16 ‘‘(3) the Secretary has served a levy in connec17 tion with the collection of taxes under chapter 21, 22, 

18 23, or 24,’’. 

19 (b) EFFECTIVE DATE.—The amendments made by this 

20 section shall apply to levies issued on or after the date that 

21 is 120 days after the date of the enactment of this Act. 

22 SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS. 

23 (a) MODIFICATION OF TAX THRESHOLD FOR

24 AWARDS.—Subparagraph (B) of section 7623(b)(5), as 

25 added by the Tax Relief and Health Care Act of 2006, is 

26 amended by striking ‘‘$2,000,000’’ and inserting ‘‘$20,000’’. 


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1 (b) WHISTLEBLOWER OFFICE.— 

2 (1) IN GENERAL.—Section 7623 is amended by 

3 adding at the end the following new subsections: 

4 ‘‘(c) WHISTLEBLOWER OFFICE.— 

5 ‘‘(1) IN GENERAL.—There is established in the 

6 Internal Revenue Service an office to be known as the 

7 ‘Whistleblower Office’ which— 

8 ‘‘(A) shall at all times operate at the direc9 tion of the Commissioner and coordinate and 

10 consult with other divisions in the Internal Rev11 enue Service as directed by the Commissioner, 

12 ‘‘(B) shall analyze information received 

13 from any individual described in subsection (b) 

14 and either investigate the matter itself or assign 

15 it to the appropriate Internal Revenue Service 

16 office, 

17 ‘‘(C) shall monitor any action taken with 

18 respect to such matter, 

19 ‘‘(D) shall inform such individual that it 

20 has accepted the individual’s information for 

21 further review, 

22 ‘‘(E) may require such individual and any 

23 legal representative of such individual to not dis24 close any information so provided, 


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1 ‘‘(F) in its sole discretion, may ask for ad2 ditional assistance from such individual or any 

3 legal representative of such individual, and 

4 ‘‘(G) shall determine the amount to be 

5 awarded to such individual under subsection (b). 

6 ‘‘(2) FUNDING FOR OFFICE.—There is authorized 

7 to be appropriated $10,000,000 for each fiscal year 

8 for the Whistleblower Office. These funds shall be used 

9 to maintain the Whistleblower Office and also to re10 imburse other Internal Revenue Service offices for re11 lated costs, such as costs of investigation and collec12 tion. 

13 ‘‘(3) REQUESTFOR ASSISTANCE.— 

14 ‘‘(A) IN GENERAL.—Any assistance re15 quested under paragraph (1)(F) shall be under 

16 the direction and control of the Whistleblower Of17 fice or the office assigned to investigate the mat18 ter under subparagraph (A). No individual or 

19 legal representative whose assistance is so re20 quested may by reason of such request represent 

21 himself or herself as an employee of the Federal 

22 Government. 

23 ‘‘(B) FUNDING OF ASSISTANCE.—From the 

24 amounts available for expenditure under sub25 section (b), the Whistleblower Office may, with 


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1 the agreement of the individual described in sub2 section (b), reimburse the costs incurred by any 

3 legal representative of such individual in pro4 viding assistance described in subparagraph (A). 

5 ‘‘(d) REPORTS.—The Secretary shall each year con6 duct a study and report to Congress on the use of this sec7 tion, including— 

8 ‘‘(1) an analysis of the use of this section during 

9 the preceding year and the results of such use, and 

10 ‘‘(2) any legislative or administrative rec11 ommendations regarding the provisions of this section 

12 and its application.’’. 

13 (2) CONFORMING AMENDMENT.—Section 406 of 

14 division A of the Tax Relief and Health Care Act of 

15 2006 is amended by striking subsections (b) and (c). 

16 (3) REPORT ON IMPLEMENTATION.—Not later 

17 than 6 months after the date of the enactment of this 

18 Act, the Secretary of the Treasury shall submit to 

19 Congress a report on the establishment and operation 

20 of the Whistleblower Office under section 7623(c) of 

21 the Internal Revenue Code of 1986. 

22 (c) PUBLICITY OF AWARD APPEALS.—Paragraph (4) 

23 of section 7623(b), as added by the Tax Relief and Health 

24 Care Act of 2006, is amended to read as follows: 

25 ‘‘(4) APPEAL OF AWARD DETERMINATION.— 


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1 ‘‘(A) IN GENERAL.—Any determination re2 garding an award under paragraph (1), (2), or 

3 (3) may, within 30 days of such determination, 

4 be appealed to the Tax Court (and the Tax Court 

5 shall have jurisdiction with respect to such mat6 ter). 

7 ‘‘(B) PUBLICITY OF APPEALS.—Notwith8 standing sections 7458 and 7461, the Tax Court 

9 may, in order to preserve the anonymity, pri10 vacy, or confidentiality of any person under this 

11 subsection, provide by rules adopted under sec12 tion 7453 that portions of filings, hearings, testi13 mony, evidence, and reports in connection with 

14 proceedings under this subsection may be closed 

15 to the public or to inspection by the public.’’. 

16 (d) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section shall 

19 apply to information provided on or after the date of 

20 the enactment of this Act. 

21 (2) PUBLICITY OF AWARD APPEALS.—The 

22 amendment made by subsection (c) shall take effect as 

23 if included in the amendments made by section 406 

24 of the Tax Relief and Health Care Act of 2006. 


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1 SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES 

2 COVERED BY DENIAL OF DEDUCTION FOR EX3 CESSIVE EMPLOYEE REMUNERATION. 

4 (a) IN GENERAL.—Paragraph (3) of section 162(m) is 

5 amended to read as follows: 

6 ‘‘(3) COVERED EMPLOYEE.—For purposes of this 

7 subsection, the term ‘covered employee’ means, with 

8 respect to any taxpayer for any taxable year, an indi9 vidual who— 

10 ‘‘(A) was the chief executive officer of the 

11 taxpayer, or an individual acting in such a ca12 pacity, at any time during the taxable year, 

13 ‘‘(B) is 1 of the 4 highest compensated offi14 cers of the taxpayer for the taxable year (other 

15 than the individual described in subparagraph 

16 (A)), or 

17 ‘‘(C) was a covered employee of the taxpayer 

18 (or any predecessor) for any preceding taxable 

19 year beginning after December 31, 2006. 

20 ‘‘In the case of an individual who was a covered 

21 employee for any taxable year beginning after Decem22 ber 31, 2006, the term ‘covered employee’ shall include 

23 a beneficiary of such employee with respect to any re24 muneration for services performed by such employee 

25 as a covered employee (whether or not such services 


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1 are performed during the taxable year in which the 

2 remuneration is paid).’’. 

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

4 section shall apply to taxable years beginning after Decem5 ber 31, 2006. 

6 SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE 

7 UNEARNED INCOME IS TAXED AS IF PARENT’S 

8 INCOME. 

9 (a) IN GENERAL.—Subparagraph (A) of section 

10 1(g)(2) (relating to child to whom subsection applies) is 

11 amended to read as follows: 

12 ‘‘(A) such child— 

13 ‘‘(i) has not attained age 18 before the 

14 close of the taxable year, or 

15 ‘‘(ii)(I) has attained age 18 before the 

16 close of the taxable year and meets the age 

17 requirements of section 152(c)(3) (deter18 mined without regard to subparagraph (B) 

19 thereof), and 

20 ‘‘(II) whose earned income (as defined 

21 in section 911(d)(2)) for such taxable year 

22 does not exceed one-half of the amount of the 

23 individual’s support (within the meaning of 

24 section 152(c)(1)(D) after the application of 

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1 paragraph (A) thereof) for such taxable 

2 year,’’. 

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

4 section shall apply to taxable years beginning after the date 

5 of the enactment of this Act. 

6 SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES. 

7 (a) FAILURE TO FILE CORRECT INFORMATION RE8 TURNS.— 

9 (1) IN GENERAL.—Section 6721(a)(1) is amend10 ed— 

11 (A) by striking ‘‘$50’’ and inserting 

12 ‘‘$250’’, and 

13 (B) by striking ‘‘$250,000’’ and inserting 

14 ‘‘$3,000,000’’. 

15 (2) REDUCTION WHERE CORRECTION IN SPECI16 FIED PERIOD.— 

17 (A) CORRECTION WITHIN 30 DAYS.—Section 

18 6721(b)(1) is amended— 

19 (i) by striking ‘‘$15’’ and inserting 

20 ‘‘$50’’, 

21 (ii) by striking ‘‘$50’’ and inserting 

22 ‘‘$250’’, and 

23 (iii) by striking ‘‘$75,000’’ and insert24 ing ‘‘$500,000’’. 


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1 (B) FAILURES CORRECTED ON OR BEFORE

2 AUGUST 1.—Section 6721(b)(2) is amended— 

3 (i) by striking ‘‘$30’’ and inserting 

4 ‘‘$100’’, 

5 (ii) by striking ‘‘$50’’ and inserting 

6 ‘‘$250’’, and 

7 (iii) by striking ‘‘$150,000’’ and in8 serting ‘‘$1,500,000’’. 

9 (3) LOWER LIMITATION FOR PERSONS WITH

10 GROSS RECEIPTS OF NOT MORE THAN $5,000,000.— 

11 Section 6721(d)(1) is amended— 

12 (A) in subparagraph (A)— 

13 (i) by striking ‘‘$100,000’’ and insert14 ing ‘‘$1,000,000’’, and 

15 (ii) by striking ‘‘$250,000’’ and insert16 ing ‘‘$3,000,000’’, 

17 (B) in subparagraph (B)— 

18 (i) by striking ‘‘$25,000’’ and inserting 

19 ‘‘$175,000’’, and 

20 (ii) by striking ‘‘$75,000’’ and insert21 ing ‘‘$500,000’’, and 

22 (C) in subparagraph (C)— 

23 (i) by striking ‘‘$50,000’’ and inserting 

24 ‘‘$500,000’’, and 


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1 (ii) by striking ‘‘$150,000’’ and insert2 ing ‘‘$1,500,000’’. 

3 (4) PENALTY IN CASE OF INTENTIONAL DIS4 REGARD.—Section 6721(e) is amended— 

5 (A) by striking ‘‘$100’’ in paragraph (2) 

6 and inserting ‘‘$500’’, 

7 (B) by striking ‘‘$250,000’’ in paragraph 

8 (3)(A) and inserting ‘‘$3,000,000’’. 

9 (b) FAILURE TO FURNISH CORRECT PAYEE STATE10 MENTS.— 

11 (1) IN GENERAL.—Section 6722(a) is amended— 

12 (A) by striking ‘‘$50’’ and inserting 

13 ‘‘$250’’, and 

14 (B) by striking ‘‘$100,000’’ and inserting 

15 ‘‘$1,000,000’’. 

16 (2) PENALTY IN CASE OF INTENTIONAL DIS17 REGARD.—Section 6722(c) is amended— 

18 (A) by striking ‘‘$100’’ in paragraph (1) 

19 and inserting ‘‘$500’’, and 

20 (B) by striking ‘‘$100,000’’ in paragraph 

21 (2)(A) and inserting ‘‘$1,000,000’’. 

22 (c) FAILURE TO COMPLY WITH OTHER INFORMATION

23 REPORTING REQUIREMENTS.—Section 6723 is amended— 

24 (1) by striking ‘‘$50’’ and inserting ‘‘$250’’, and 


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1 (2) by striking ‘‘$100,000’’ and inserting 

2 ‘‘$1,000,000’’. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply with respect to information returns re5 quired to be filed on or after January 1, 2008. 

6 SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE OR7 GANIZATIONS. 

8 (a) IN GENERAL.—The first sentence of section 

9 6011(e)(2) is amended to read as follows: ‘‘In prescribing 

10 regulations under paragraph (1), the Secretary shall take 

11 into account (among other relevant factors) the ability of 

12 the taxpayer to comply at reasonable cost with the require13 ments of such regulations.’’. 

14 (b) CONFORMING AMENDMENT.—Section 6724 is 

15 amended by striking subsection (c). 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to taxable years ending on or after De18 cember 31, 2008. 

19 SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN 

20 NATIONAL DIRECTORY OF NEW HIRES FOR 

21 TAX ADMINISTRATION PURPOSES. 

22 (a) IN GENERAL.—Paragraph (3) of section 453(j) of 

23 the Social Security Act (42 U.S.C. 653(j)) is amended to 

24 read as follows: 


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1 ‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.— 

2 The Secretary of the Treasury shall have access to the 

3 information in the National Directory of New Hires 

4 for purposes of administering the Internal Revenue 

5 Code of 1986.’’. 

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

7 section shall take effect on the date of the enactment of this 

8 Act. 

9 SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMA10 TION TO FEDERAL BUREAU OF PRISONS. 

11 (a) DISCLOSURE.— 

12 (1) IN GENERAL.—Subsection (l) of section 6103 

13 (relating to disclosure of returns and return informa14 tion for purposes other than tax administration) is 

15 amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(22) DISCLOSURE OF RETURN INFORMATION OF

18 PRISONERS TO FEDERAL BUREAU OF PRISONS.— 

19 ‘‘(A) IN GENERAL.—Under such procedures 

20 as the Secretary may prescribe, the Secretary 

21 may disclose return information with respect to 

22 persons incarcerated in Federal prisons whom 

23 the Secretary believes filed or facilitated the fil24 ing of false or fraudulent returns to the head of 

25 the Federal Bureau of Prisons if the Secretary 


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1 determines that such disclosure is necessary to 

2 permit effective tax administration. 

3 ‘‘(B) DISCLOSURE BY AGENCY TO EMPLOY4 EES.—The head of the Federal Bureau of Prisons 

5 may redisclose information received under sub6 paragraph (A)— 

7 ‘‘(i) only to those officers and employ8 ees of the Bureau who are personally and 

9 directly engaged in taking administrative 

10 actions to address violations of administra11 tive rules and regulations of the prison fa12 cility, and 

13 ‘‘(ii) solely for the purposes described 

14 in subparagraph (C). 

15 ‘‘(C) RESTRICTION ON USE OF DISCLOSED

16 INFORMATION.—Return information disclosed 

17 under this paragraph may be used only for the 

18 purposes of— 

19 ‘‘(i) preventing the filing of false or 

20 fraudulent returns; and 

21 ‘‘(ii) taking administrative actions 

22 against individuals who have filed or at23 tempted to file false or fraudulent returns.’’. 


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1 (2) PROCEDURES AND RECORD KEEPING RE2 LATED TO DISCLOSURE.—Subsection (p)(4) of section 

3 6103 is amended— 

4 (A) by striking ‘‘(14), or (17)’’ in the mat5 ter before subparagraph (A) and inserting ‘‘(14), 

6 (17), or (22)’’, and 

7 (B) by striking ‘‘(9), or (16)’’ in subpara8 graph (F)(i) and inserting ‘‘(9), (16), or (22)’’. 

9 (3) EVALUATION BY TREASURY INSPECTOR GEN10 ERAL FOR TAX ADMINISTRATION.—Paragraph (3) of 

11 section 7803(d) is amended by striking ‘‘and’’ at the 

12 end of subparagraph (A), by striking the period at the 

13 end of subparagraph (B) and inserting ‘‘; and’’, and 

14 by adding at the end the following new subparagraph: 

15 ‘‘(C) not later than 3 years after the date of 

16 the enactment of section 6103(l)(22), submit a 

17 written report to Congress on the implementa18 tion of such section.’’. 

19 (b) ANNUAL REPORTS.— 

20 (1) IN GENERAL.—The Secretary of the Treasury 

21 shall submit to Congress and make publicly available 

22 an annual report on the filing of false and fraudulent 

23 returns by individuals incarcerated in Federal and 

24 State prisons. 


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1 (2) CONTENTS OF REPORT.—The report sub2 mitted under paragraph (1) shall contain statistics 

3 on the number of false or fraudulent returns associ4 ated with each Federal and State prison and such 

5 other information that the Secretary determines is 

6 appropriate. 

7 (3) EXCHANGE OF INFORMATION.—For the pur8 pose of gathering information necessary for the re9 ports required under paragraph (1), the Secretary of 

10 the Treasury shall enter into agreements with the 

11 head of the Federal Bureau of Prisons and the heads 

12 of State agencies charged with responsibility for ad13 ministration of State prisons under which the head of 

14 the Bureau or Agency provides to the Secretary not 

15 less frequently than annually the names and other 

16 identifying information of prisoners incarcerated at 

17 each facility administered by the Bureau or Agency. 

18 (c) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to disclosures on or after January 1, 

20 2008. 

21 SEC. 550. UNDERSTATEMENT OF TAXPAYER LIABILITY BY 

22 RETURN PREPARERS. 

23 (a) APPLICATION OF RETURN PREPARER PENALTIES

24 TO ALL TAX RETURNS.— 


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1 (1) DEFINITION OF TAX RETURN PREPARER.— 

2 Paragraph (36) of section 7701(a) (relating to income 

3 tax preparer) is amended— 

4 (A) by striking ‘‘income’’ each place it ap5 pears in the heading and the text, and 

6 (B) in subparagraph (A), by striking ‘‘sub7 title A’’ each place it appears and inserting ‘‘this 

8 title’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A)(i) Section 6060 is amended by striking 

11 ‘‘INCOME TAX RETURN PREPARERS’’ in the 

12 heading and inserting ‘‘TAX RETURN PRE13 PARERS’’. 

14 (ii) Section 6060(a) is amended— 

15 (I) by striking ‘‘an income tax return 

16 preparer’’ each place it appears and insert17 ing ‘‘a tax return preparer’’, 

18 (II) by striking ‘‘each income tax re19 turn preparer’’ and inserting ‘‘each tax re20 turn preparer’’, and 

21 (III) by striking ‘‘another income tax 

22 return preparer’’ and inserting ‘‘another 

23 tax return preparer’’. 

24 (iii) The item relating to section 6060 in 

25 the table of sections for subpart F of part III of 


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1 subchapter A of chapter 61 is amended by strik2 ing ‘‘income tax return preparers’’ and inserting 

3 ‘‘tax return preparers’’. 

4 (iv) Subpart F of part III of subchapter A 

5 of chapter 61 is amended by striking ‘‘Income 

6 Tax Return Preparers’’ in the heading and 

7 inserting ‘‘Tax Return Preparers’’. 

8 (v) The item relating to subpart F in the 

9 table of subparts for part III of subchapter A of 

10 chapter 61 is amended by striking ‘‘income tax 

11 return preparers’’ and inserting ‘‘tax return pre12 parers’’. 

13 (B) Section 6103(k)(5) is amended— 

14 (i) by striking ‘‘income tax return pre15 parer’’ each place it appears and inserting 

16 ‘‘tax return preparer’’, and 

17 (ii) by striking ‘‘income tax return 

18 preparers’’ each place it appears and insert19 ing ‘‘tax return preparers’’. 

20 (C)(i) Section 6107 is amended— 

21 (I) by striking ‘‘INCOME TAX RE22 TURN PREPARER’’ in the heading and in23 serting ‘‘TAX RETURN PREPARER’’, 

24 (II) by striking ‘‘an income tax return 

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1 sections (a) and (b) and inserting ‘‘a tax re2 turn preparer’’, 

3 (III) by striking ‘‘INCOME TAX RE4 TURN PREPARER’’ in the heading for sub5 section (b) and inserting ‘‘TAX RETURN

6 PREPARER’’, and 

7 (IV) in subsection (c), by striking ‘‘in8 come tax return preparers’’ and inserting 

9 ‘‘tax return preparers’’. 

10 (ii) The item relating to section 6107 in the 

11 table of sections for subchapter B of chapter 61 

12 is amended by striking ‘‘Income tax return pre13 parer’’ and inserting ‘‘Tax return preparer’’. 

14 (D) Section 6109(a)(4) is amended— 

15 (i) by striking ‘‘an income tax return 

16 preparer’’ and inserting ‘‘a tax return pre17 parer’’, and 

18 (ii) by striking ‘‘INCOME RETURN PRE19 PARER’’ in the heading and inserting ‘‘TAX

20 RETURN PREPARER’’. 

21 (E) Section 6503(k)(4) is amended by strik22 ing ‘‘Income tax return preparers’’ and inserting 

23 ‘‘Tax return preparers’’. 

24 (F)(i) Section 6694 is amended— 


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1 (I) by striking ‘‘INCOME TAX RE2 TURN PREPARER’’ in the heading and in3 serting ‘‘TAX RETURN PREPARER’’, 

4 (II) by striking ‘‘an income tax return 

5 preparer’’ each place it appears and insert6 ing ‘‘a tax return preparer’’, 

7 (III) in subsection (c)(2), by striking 

8 ‘‘the income tax return preparer’’ and in9 serting ‘‘the tax return preparer’’, 

10 (IV) in subsection (e), by striking 

11 ‘‘subtitle A’’ and inserting ‘‘this title’’, and 

12 (V) in subsection (f), by striking ‘‘in13 come tax return preparer’’ and inserting 

14 ‘‘tax return preparer’’. 

15 (ii) The item relating to section 6694 in the 

16 table of sections for part I of subchapter B of 

17 chapter 68 is amended by striking ‘‘income tax 

18 return preparer’’ and inserting ‘‘tax return pre19 parer’’. 

20 (G)(i) Section 6695 is amended— 

21 (I) by striking ‘‘INCOME’’ in the head22 ing, and 

23 (II) by striking ‘‘an income tax return 

24 preparer’’ each place it appears and insert25 ing ‘‘a tax return preparer’’. 


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1 (ii) Section 6695(f) is amended— 

2 (I) by striking ‘‘subtitle A’’ and insert3 ing ‘‘this title’’, and 

4 (II) by striking ‘‘the income tax return 

5 preparer’’ and inserting ‘‘the tax return 

6 preparer’’. 

7 (iii) The item relating to section 6695 in 

8 the table of sections for part I of subchapter B 

9 of chapter 68 is amended by striking ‘‘income’’. 

10 (H) Section 6696(e) is amended by striking 

11 ‘‘subtitle A’’ each place it appears and inserting 

12 ‘‘this title’’. 

13 (I)(i) Section 7407 is amended— 

14 (I) by striking ‘‘INCOME TAX RE15 TURN PREPARERS’’ in the heading and 

16 inserting ‘‘TAX RETURN PREPARERS’’, 

17 (II) by striking ‘‘an income tax return 

18 preparer’’ each place it appears and insert19 ing ‘‘a tax return preparer’’, 

20 (III) by striking ‘‘income tax pre21 parer’’ both places it appears in subsection 

22 (a) and inserting ‘‘tax return preparer’’, 

23 and 


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1 (IV) by striking ‘‘income tax return’’ 

2 in subsection (a) and inserting ‘‘tax re3 turn’’. 

4 (ii) The item relating to section 7407 in the 

5 table of sections for subchapter A of chapter 76 

6 is amended by striking ‘‘income tax return pre7 parers’’ and inserting ‘‘tax return preparers’’. 

8 (J)(i) Section 7427 is amended— 

9 (I) by striking ‘‘INCOME TAX RE10 TURN PREPARERS’’ in the heading and 

11 inserting ‘‘TAX RETURN PREPARERS’’, 

12 and 

13 (II) by striking ‘‘an income tax return 

14 preparer’’ and inserting ‘‘a tax return pre15 parer’’. 

16 (ii) The item relating to section 7427 in the 

17 table of sections for subchapter B of chapter 76 

18 is amended to read as follows: 

‘‘Sec. 7427. Tax return preparers.’’. 

19 (b) MODIFICATION OF PENALTY FOR UNDERSTATE20 MENTOF TAXPAYER’S LIABILITY BY TAX RETURN PRE21 PARER.—Subsections (a) and (b) of section 6694 are 

22 amended to read as follows: 

23 ‘‘(a) UNDERSTATEMENT DUE TO UNREASONABLE PO24 SITIONS.— 


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1 ‘‘(1) IN GENERAL.—Any tax return preparer 

2 who prepares any return or claim for refund with re3 spect to which any part of an understatement of li4 ability is due to a position described in paragraph 

5 (2) shall pay a penalty with respect to each such re6 turn or claim in an amount equal to the greater of— 

7 ‘‘(A) $1,000, or 

8 ‘‘(B) 50 percent of the income derived (or to 

9 be derived) by the tax return preparer with re10 spect to the return or claim. 

11 ‘‘(2) UNREASONABLE POSITION.—A position is 

12 described in this paragraph if— 

13 ‘‘(A) the tax return preparer knew (or rea14 sonably should have known) of the position, 

15 ‘‘(B) there was not a reasonable belief that 

16 the position would more likely than not be sus17 tained on its merits, and 

18 ‘‘(C)(i) the position was not disclosed as 

19 provided in section 6662(d)(2)(B)(ii), or 

20 ‘‘(ii) there was no reasonable basis for the 

21 position. 

22 ‘‘(3) REASONABLE CAUSE EXCEPTION.—No pen23 alty shall be imposed under this subsection if it is 

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1 statement and the tax return preparer acted in good 

2 faith. 

3 ‘‘(b) UNDERSTATEMENT DUE TO WILLFUL OR RECK4 LESS CONDUCT.— 

5 ‘‘(1) IN GENERAL.—Any tax return preparer 

6 who prepares any return or claim for refund with re7 spect to which any part of an understatement of li8 ability is due to a conduct described in paragraph (2) 

9 shall pay a penalty with respect to each such return 

10 or claim in an amount equal to the greater of— 

11 ‘‘(A) $5,000, or 

12 ‘‘(B) 50 percent of the income derived (or to 

13 be derived) by the tax return preparer with re14 spect to the return or claim. 

15 ‘‘(2) WILLFUL OR RECKLESS CONDUCT.—Con16 duct described in this paragraph is conduct by the tax 

17 return preparer which is— 

18 ‘‘(A) a willful attempt in any manner to 

19 understate the liability for tax on the return or 

20 claim, or 

21 ‘‘(B) a reckless or intentional disregard of 

22 rules or regulations. 

23 ‘‘(3) REDUCTION IN PENALTY.—The amount of 

24 any penalty payable by any person by reason of this 

25 subsection for any return or claim for refund shall be 


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1 reduced by the amount of the penalty paid by such 

2 person by reason of subsection (a).’’. 

3 (c) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to returns prepared after the date of the 

5 enactment of this Act. 

6 SEC. 551. PENALTY FOR FILING ERRONEOUS REFUND 

7 CLAIMS. 

8 (a) IN GENERAL.—Part I of subchapter B of chapter 

9 68 (relating to assessable penalties) is amended by inserting 

10 after section 6675 the following new section: 

11 ‘‘SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT. 

12 ‘‘(a) CIVIL PENALTY.—If a claim for refund or credit 

13 with respect to income tax (other than a claim for a refund 

14 or credit relating to the earned income credit under section 

15 32) is made for an excessive amount, unless it is shown 

16 that the claim for such excessive amount has a reasonable 

17 basis, the person making such claim shall be liable for a 

18 penalty in an amount equal to 20 percent of the excessive 

19 amount. 

20 ‘‘(b) EXCESSIVE AMOUNT.—For purposes of this sec21 tion, the term ‘excessive amount’ means in the case of any 

22 person the amount by which the amount of the claim for 

23 refund or credit for any taxable year exceeds the amount 

24 of such claim allowable under this title for such taxable 

25 year. 


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1 ‘‘(c) COORDINATION WITH OTHER PENALTIES.—This 

2 section shall not apply to any portion of the excessive 

3 amount of a claim for refund or credit on which a penalty 

4 is imposed under part II of subchapter A of chapter 68.’’. 

5 (b) CONFORMING AMENDMENT.—The table of sections 

6 for part I of subchapter B of chapter 68 is amended by 

7 inserting after the item relating to section 6675 the fol8 lowing new item: 

‘‘Sec. 6676. Erroneous claim for refund or credit.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to any claim— 

11 (1) filed or submitted after the date of the enact12 ment of this Act, or 

13 (2) filed or submitted prior to such date but not 

14 withdrawn before the date which is 30 days after such 

15 date of enactment. 

16 SEC. 552. SUSPENSION OF CERTAIN PENALTIES AND INTER17 EST. 

18 (a) IN GENERAL.—Paragraphs (1)(A) and (3)(A) of 

19 section 6404(g) are each amended by striking ‘‘18-month 

20 period’’ and inserting ‘‘36-month period’’. 

21 (b) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section shall 

24 apply to notices provided by the Secretary of the 


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1 Treasury, or his delegate after the date which is 6 

2 months after the date of the enactment of this Act. 

3 (2) EXCEPTION FOR CERTAIN TAXPAYERS.—The 

4 amendments made by this section shall not apply to 

5 any taxpayer with respect to whom a suspension of 

6 any interest, penalty, addition to tax, or other 

7 amount is in effect on the date which is 6 months 

8 after the date of the enactment of this Act. 

9 SEC. 553. ADDITIONAL REASONS FOR SECRETARY TO TER10 MINATE INSTALLMENT AGREEMENTS. 

11 (a) IN GENERAL.—Section 6159(b)(4) (relating to fail12 ure to pay an installment or any other tax liability when 

13 due or to provide requested financial information) is 

14 amended by striking ‘‘or’’ at the end of subparagraph (B), 

15 by redesignating subparagraph (C) as subparagraph (E), 

16 and by inserting after subparagraph (B) the following new 

17 subparagraphs: 

18 ‘‘(C) to make a Federal tax deposit under 

19 section 6302 at the time such deposit is required 

20 to be made, 

21 ‘‘(D) to file a return of tax imposed under 

22 this title by its due date (including extensions), 

23 or’’. 

24 (b) CONFORMING AMENDMENT.—The heading for 

25 paragraph (4) of section 6159(b) is amended by striking 


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1 ‘‘FAILURE TO PAY AN INSTALLMENT OR ANY OTHER TAX LI2 ABILITY WHEN DUE OR TO PROVIDE REQUESTED FINANCIAL

3 INFORMATION’’ and inserting ‘‘FAILURE TO MAKE PAY4 MENTS OR DEPOSITS OR FILE RETURNS WHEN DUE OR TO

5 PROVIDE REQUESTED FINANCIAL INFORMATION’’. 

6 (c) EFFECTIVE DATE.—The amendments made by this 

7 section shall apply to failures occurring on or after the date 

8 of the enactment of this Act. 

9 SEC. 554. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS10 IN-COMPROMISE. 

11 (a) IN GENERAL.—Section 7122(b) (relating to record) 

12 is amended by striking ‘‘Whenever a compromise’’ and all 

13 that follows through ‘‘his delegate, with his reasons therefor’’ 

14 and inserting ‘‘If the Secretary determines that an opinion 

15 of the General Counsel for the Department of the Treasury, 

16 or the Counsel’s delegate, is required with respect to a com17 promise, there shall be placed on file in the office of the 

18 Secretary such opinion, with the reasons therefor’’. 

19 (b) CONFORMING AMENDMENTS.—Section 7122(b) is 

20 amended by striking the second and third sentences. 

21 (c) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to offers-in-compromise submitted or 

23 pending on or after the date of the enactment of this Act. 


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1 SEC. 555. AUTHORIZATION FOR FINANCIAL MANAGEMENT 

2 SERVICE RETENTION OF TRANSACTION FEES 

3 FROM LEVIED AMOUNTS. 

4 (a) IN GENERAL.—Subsection (h) of section 6331 (re5 lating to continuing levy on certain payments) is amended 

6 by adding at the end the following new paragraph: 

7 ‘‘(4) IMPOSITION OF FINANCIAL MANAGEMENT

8 SERVICES TRANSACTION FEES.—If the Secretary ap9 proves a levy under this subsection, the Secretary 

10 may impose on the taxpayer a transaction fee suffi11 cient to cover the full cost of implementing the levy 

12 under this subsection. Such fee— 

13 ‘‘(A) shall be treated as an expense under 

14 section 6341, 

15 ‘‘(B) may be collected through a levy under 

16 this subsection, and 

17 ‘‘(C) shall be in addition to the amount of 

18 tax liability with respect to which such levy was 

19 approved.’’. 

20 (b) RETENTION OF FEES BY FINANCIAL MANAGEMENT

21 SERVICE.—The Financial Management Service may retain 

22 the amount of any transaction fee imposed under section 

23 6331(h)(4) of the Internal Revenue Code of 1986. Any 

24 amount retained by the Financial Management Service 

25 under that section shall be deposited into the account of the 


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1 Department of the Treasury under section 3711(g)(7) of 

2 title 31, United States Code. 

3 (c) EFFECTIVE DATE.—The amendment made by this 

4 section shall apply to amounts levied after the date of the 

5 enactment of this Act. 

6 SEC. 556. AUTHORITY FOR UNDERCOVER OPERATIONS. 

7 Paragraph (6) of section 7608(c) (relating to applica8 tion of section) is amended by striking ‘‘2007’’ both places 

9 it appears and inserting ‘‘2008’’. 

10 SEC. 557. INCREASE IN PENALTY EXCISE TAXES ON THE PO11 LITICAL AND EXCESS LOBBYING ACTIVITIES 

12 OF SECTION 501(c)(3) ORGANIZATIONS. 

13 (a) TAXES ON DISQUALIFYING LOBBYING EXPENDI14 TURES OF CERTAIN ORGANIZATIONS.— 

15 (1) IN GENERAL.—Section 4912(a) (relating to 

16 tax on organization) is amended by striking ‘‘5 per17 cent’’ and inserting ‘‘10 percent’’. 

18 (2) TAX ON MANAGEMENT.—Section 4912(b) is 

19 amended by striking ‘‘5 percent’’ and inserting ‘‘10 

20 percent’’. 

21 (b) TAXES ON POLITICAL EXPENDITURES OF SECTION

22 501(c)(3) ORGANIZATIONS.— 

23 (1) IN GENERAL.—Section 4955(a) (relating to 

24 initial taxes) is amended— 


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1 (A) in paragraph (1), by striking ‘‘10 per2 cent’’ and inserting ‘‘20 percent’’, and 

(B) in paragraph (2), by striking ‘‘21 3 ⁄2 per4 cent’’ and inserting ‘‘5 percent’’. 

5 (2) INCREASED LIMITATION FOR MANAGERS.— 

6 Section 4955(c)(2) is amended— 

7 (A) by striking ‘‘$5,000’’ and inserting 

8 ‘‘$10,000’’, and 

9 (B) by striking ‘‘$10,000’’ and inserting 

10 ‘‘$20,000’’. 

11 (c) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to taxable years beginning after the date 

13 of the enactment of this Act. 

14 SEC. 558. INCREASED PENALTY FOR FAILURE TO FILE FOR 

15 EXEMPT ORGANIZATIONS. 

16 (a) IN GENERAL.—Subparagraph (A) of section 

17 6652(c)(1) (relating to annual returns under section 

18 6033(a)(1) or 6012(a)(6)) is amended by adding at the end 

19 the following new sentence: ‘‘In the case of an organization 

20 having gross receipts exceeding $25,000,000 for any year, 

21 with respect to the return so required, the first sentence of 

22 this subparagraph shall be applied by substituting ‘$250’ 

23 for ‘$20’ and, in lieu of applying the second sentence of 

24 this subparagraph, the maximum penalty under this sub25 paragraph shall not exceed $125,000.’’. 


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1 (b) CONFORMING AMENDMENT.—The third sentence of 

2 section 6652(c)(1)(A) is amended by inserting ‘‘but not ex3 ceeding $25,000,000’’ after ‘‘$1,000,000’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to returns required to be filed on or after 

6 January 1, 2008. 

7 SEC. 559. PENALTIES FOR FAILURE TO FILE CERTAIN RE8 TURNS ELECTRONICALLY. 

9 (a) IN GENERAL.—Part I of subchapter A of chapter 

10 68 (relating to additions to the tax, additional amounts, 

11 and assessable penalties) is amended by inserting after sec12 tion 6652 the following new section: 

13 ‘‘SEC. 6652A. FAILURE TO FILE CERTAIN RETURNS ELEC14 TRONICALLY. 

15 ‘‘(a) IN GENERAL.—If a person fails to file a return 

16 described in section 6651 or 6652(c)(1) in electronic form 

17 as required under section 6011(e)— 

18 ‘‘(1) such failure shall be treated as a failure to 

19 file such return (even if filed in a form other than 

20 electronic form), and 

21 ‘‘(2) the penalty imposed under section 6651 or 

22 6652(c), whichever is appropriate, shall be equal to 

23 the greater of— 


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1 ‘‘(A) the amount of the penalty under such 

2 section, determined without regard to this sec3 tion, or 

4 ‘‘(B) the amount determined under sub5 section (b). 

6 ‘‘(b) AMOUNTOF PENALTY.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graphs (2) and (3), the penalty determined under this 

9 subsection is equal to $40 for each day during which 

10 a failure described under subsection (a) continues. 

11 The maximum penalty under this paragraph on fail12 ures with respect to any 1 return shall not exceed the 

13 lesser of $20,000 or 10 percent of the gross receipts of 

14 the taxpayer for the year. 

15 ‘‘(2) INCREASED PENALTIES FOR TAXPAYERS

16 WITH GROSS RECEIPTS BETWEEN $1,000,000 AND

17 $100,000,000.— 

18 ‘‘(A) TAXPAYERS WITH GROSS RECEIPTS

19 BETWEEN $1,000,000 AND $25,000,000.—In the case 

20 of a taxpayer having gross receipts exceeding 

21 $1,000,000 but not exceeding $25,000,000 for 

22 any year— 

23 ‘‘(i) the first sentence of paragraph (1) 

24 shall be applied by substituting ‘$200’ for 

25 ‘$40’, and 


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1 ‘‘(ii) in lieu of applying the second 

2 sentence of paragraph (1), the maximum 

3 penalty under paragraph (1) shall not ex4 ceed $100,000. 

5 ‘‘(B) TAXPAYERS WITH GROSS RECEIPTS

6 OVER $25,000,000.—Except as provided in para7 graph (3), in the case of a taxpayer having gross 

8 receipts exceeding $25,000,000 for any year— 

9 ‘‘(i) the first sentence of paragraph (1) 

10 shall be applied by substituting ‘$500’ for 

11 ‘$40’, and 

12 ‘‘(ii) in lieu of applying the second 

13 sentence of paragraph (1), the maximum 

14 penalty under paragraph (1) shall not ex15 ceed $250,000. 

16 ‘‘(3) INCREASED PENALTIES FOR CERTAIN TAX17 PAYERS WITH GROSS RECEIPTS EXCEEDING

18 $100,000,000.—In the case of a return described in sec19 tion 6651— 

20 ‘‘(A) TAXPAYERS WITH GROSS RECEIPTS

21 BETWEEN $100,000,000 AND $250,000,000.—In the 

22 case of a taxpayer having gross receipts exceed23 ing $100,000,000 but not exceeding $250,000,000 

24 for any year— 


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1 ‘‘(i) the amount of the penalty deter2 mined under this subsection shall equal the 

3 sum of— 

4 ‘‘(I) $50,000, plus 

5 ‘‘(II) $1,000 for each day during 

6 which such failure continues (twice 

7 such amount for each day such failure 

8 continues after the first such 60 days), 

9 and 

10 ‘‘(ii) the maximum amount under 

11 clause (i)(II) on failures with respect to any 

12 1 return shall not exceed $200,000. 

13 ‘‘(B) TAXPAYERS WITH GROSS RECEIPTS

14 OVER $250,000,000.—In the case of a taxpayer 

15 having gross receipts exceeding $250,000,000 for 

16 any year— 

17 ‘‘(i) the amount of the penalty deter18 mined under this subsection shall equal the 

19 sum of— 

20 ‘‘(I) $250,000, plus 

21 ‘‘(II) $2,500 for each day during 

22 which such failure continues (twice 

23 such amount for each day such failure 

24 continues after the first such 60 days), 

25 and 


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1 ‘‘(ii) the maximum amount under 

2 clause (i)(II) on failures with respect to any 

3 1 return shall not exceed $250,000. 

4 ‘‘(C) EXCEPTION FOR CERTAIN RETURNS.— 

5 Subparagraphs (A) and (B) shall not apply to 

6 any return of tax imposed under section 511.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections for 

8 part I of subchapter A of chapter 68 is amended by insert9 ing after the item relating to section 6652 the following new 

10 item: 

‘‘Sec. 6652A. Failure to file certain returns electronically.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to returns required to be filed on or after 

13 January 1, 2008. 

14 PART III—GENERAL PROVISIONS 

15 SEC. 561. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 

16 BUSINESSES. 

17 (a) IN GENERAL.—Section 212 of the Small Business 

18 Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 

19 note) is amended by striking subsection (a) and inserting 

20 the following: 

21 ‘‘(a) COMPLIANCE GUIDE.— 

22 ‘‘(1) IN GENERAL.—For each rule or group of re23 lated rules for which an agency is required to prepare 

24 a final regulatory flexibility analysis under section 

25 605(b) of title 5, United States Code, the agency shall 


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1 publish 1 or more guides to assist small entities in 

2 complying with the rule and shall entitle such publi3 cations ‘small entity compliance guides’. 

4 ‘‘(2) PUBLICATION OF GUIDES.—The publication 

5 of each guide under this subsection shall include— 

6 ‘‘(A) the posting of the guide in an easily 

7 identified location on the website of the agency; 

8 and 

9 ‘‘(B) distribution of the guide to known in10 dustry contacts, such as small entities, associa11 tions, or industry leaders affected by the rule. 

12 ‘‘(3) PUBLICATION DATE.—An agency shall pub13 lish each guide (including the posting and distribu14 tion of the guide as described under paragraph (2))— 

15 ‘‘(A) on the same date as the date of publi16 cation of the final rule (or as soon as possible 

17 after that date); and 

18 ‘‘(B) not later than the date on which the 

19 requirements of that rule become effective. 

20 ‘‘(4) COMPLIANCE ACTIONS.— 

21 ‘‘(A) IN GENERAL.—Each guide shall ex22 plain the actions a small entity is required to 

23 take to comply with a rule. 

24 ‘‘(B) EXPLANATION.—The explanation 

25 under subparagraph (A)— 


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1 ‘‘(i) shall include a description of ac2 tions needed to meet the requirements of a 

3 rule, to enable a small entity to know when 

4 such requirements are met; and 

5 ‘‘(ii) if determined appropriate by the 

6 agency, may include a description of pos7 sible procedures, such as conducting tests, 

8 that may assist a small entity in meeting 

9 such requirements, except that, compliance 

10 with any procedures described pursuant to 

11 this section does not establish compliance 

12 with the rule, or establish a presumption or 

13 inference of such compliance. 

14 ‘‘(C) PROCEDURES.—Procedures described 

15 under subparagraph (B)(ii)— 

16 ‘‘(i) shall be suggestions to assist small 

17 entities; and 

18 ‘‘(ii) shall not be additional require19 ments, or diminish requirements, relating to 

20 the rule. 

21 ‘‘(5) AGENCY PREPARATION OF GUIDES.—The 

22 agency shall, in its sole discretion, taking into ac23 count the subject matter of the rule and the language 

24 of relevant statutes, ensure that the guide is written 

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1 stood by affected small entities. Agencies may prepare 

2 separate guides covering groups or classes of similarly 

3 affected small entities and may cooperate with asso4 ciations of small entities to develop and distribute 

5 such guides. An agency may prepare guides and 

6 apply this section with respect to a rule or a group 

7 of related rules. 

8 ‘‘(6) REPORTING.—Not later than 1 year after 

9 the date of enactment of the Fair Minimum Wage Act 

10 of 2007, and annually thereafter, the head of each 

11 agency shall submit a report to the Committee on 

12 Small Business and Entrepreneurship of the Senate, 

13 the Committee on Small Business of the House of 

14 Representatives, and any other committee of relevant 

15 jurisdiction describing the status of the agency’s com16 pliance with paragraphs (1) through (5).’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec18 tion 211(3) of the Small Business Regulatory Enforcement 

19 Fairness Act of 1996 (5 U.S.C. 601 note) is amended by 

20 inserting ‘‘and entitled’’ after ‘‘designated’’. 

21 SEC. 562. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

22 (a) ESTABLISHMENT.—The Secretary of Health and 

23 Human Services (referred to in this section as the ‘‘Sec24 retary’’) shall establish a program to award grants to 

25 States, on a competitive basis, to assist States in providing 


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1 funds to encourage the establishment and operation of em2 ployer-operated child care programs. 

3 (b) APPLICATION.—To be eligible to receive a grant 

4 under this section, a State shall prepare and submit to the 

5 Secretary an application at such time, in such manner, and 

6 containing such information as the Secretary may require, 

7 including an assurance that the funds required under sub8 section (e) will be provided. 

9 (c) AMOUNTAND PERIOD OF GRANT.—The Secretary 

10 shall determine the amount of a grant to a State under 

11 this section based on the population of the State as com12 pared to the population of all States receiving grants under 

13 this section. The Secretary shall make the grant for a period 

14 of 3 years. 

15 (d) USE OF FUNDS.— 

16 (1) IN GENERAL.—A State shall use amounts 

17 provided under a grant awarded under this section to 

18 provide assistance to small businesses (or consortia 

19 formed in accordance with paragraph (3)) located in 

20 the State to enable the small businesses (or consortia) 

21 to establish and operate child care programs. Such as22 sistance may include— 

23 (A) technical assistance in the establishment 

24 of a child care program; 


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1 (B) assistance for the startup costs related 

2 to a child care program; 

3 (C) assistance for the training of child care 

4 providers; 

5 (D) scholarships for low-income wage earn6 ers; 

7 (E) the provision of services to care for sick 

8 children or to provide care to school-aged chil9 dren; 

10 (F) the entering into of contracts with local 

11 resource and referral organizations or local 

12 health departments; 

13 (G) assistance for care for children with 

14 disabilities; 

15 (H) payment of expenses for renovation or 

16 operation of a child care facility; or 

17 (I) assistance for any other activity deter18 mined appropriate by the State. 

19 (2) APPLICATION.—In order for a small business 

20 or consortium to be eligible to receive assistance from 

21 a State under this section, the small business involved 

22 shall prepare and submit to the State an application 

23 at such time, in such manner, and containing such 

24 information as the State may require. 

25 (3) PREFERENCE.— 


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1 (A) IN GENERAL.—In providing assistance 

2 under this section, a State shall give priority to 

3 an applicant that desires to form a consortium 

4 to provide child care in a geographic area within 

5 the State where such care is not generally avail6 able or accessible. 

7 (B) CONSORTIUM.—For purposes of sub8 paragraph (A), a consortium shall be made up 

9 of 2 or more entities that shall include small 

10 businesses and that may include large businesses, 

11 nonprofit agencies or organizations, local govern12 ments, or other appropriate entities. 

13 (4) LIMITATIONS.—With respect to grant funds 

14 received under this section, a State may not provide 

15 in excess of $500,000 in assistance from such funds 

16 to any single applicant. 

17 (e) MATCHING REQUIREMENT.—To be eligible to re18 ceive a grant under this section, a State shall provide assur19 ances to the Secretary that, with respect to the costs to be 

20 incurred by a covered entity receiving assistance in car21 rying out activities under this section, the covered entity 

22 will make available (directly or through donations from 

23 public or private entities) non-Federal contributions to such 

24 costs in an amount equal to— 


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1 (1) for the first fiscal year in which the covered 

2 entity receives such assistance, not less than 50 per3 cent of such costs ($1 for each $1 of assistance pro4 vided to the covered entity under the grant); 

5 (2) for the second fiscal year in which the covered entity receives such assistance, not less than 662 6 ⁄3

7 percent of such costs ($2 for each $1 of assistance pro8 vided to the covered entity under the grant); and 

9 (3) for the third fiscal year in which the covered 

10 entity receives such assistance, not less than 75 per11 cent of such costs ($3 for each $1 of assistance pro12 vided to the covered entity under the grant). 

13 (f) REQUIREMENTS OF PROVIDERS.—To be eligible to 

14 receive assistance under a grant awarded under this section, 

15 a child care provider— 

16 (1) who receives assistance from a State shall 

17 comply with all applicable State and local licensing 

18 and regulatory requirements and all applicable health 

19 and safety standards in effect in the State; and 

20 (2) who receives assistance from an Indian tribe 

21 or tribal organization shall comply with all applica22 ble regulatory standards. 

23 (g) STATE-LEVEL ACTIVITIES.—A State may not re24 tain more than 3 percent of the amount described in subVerDate Aug 31 2005 02:36 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00522 Fmt 6652 Sfmt 6203 E:\BILLS\H1591.PP H1591

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1 section (c) for State administration and other State-level 

2 activities. 

3 (h) ADMINISTRATION.— 

4 (1) STATE RESPONSIBILITY.—A State shall have 

5 responsibility for administering a grant awarded for 

6 the State under this section and for monitoring cov7 ered entities that receive assistance under such grant. 

8 (2) AUDITS.—A State shall require each covered 

9 entity receiving assistance under the grant awarded 

10 under this section to conduct an annual audit with 

11 respect to the activities of the covered entity. Such au12 dits shall be submitted to the State. 

13 (3) MISUSE OF FUNDS.— 

14 (A) REPAYMENT.—If the State determines, 

15 through an audit or otherwise, that a covered en16 tity receiving assistance under a grant awarded 

17 under this section has misused the assistance, the 

18 State shall notify the Secretary of the misuse. 

19 The Secretary, upon such a notification, may 

20 seek from such a covered entity the repayment of 

21 an amount equal to the amount of any such mis22 used assistance plus interest. 

23 (B) APPEALS PROCESS.—The Secretary 

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1 ess with respect to repayments under this para2 graph. 

3 (i) REPORTING REQUIREMENTS.— 

4 (1) 2-YEAR STUDY.— 

5 (A) IN GENERAL.—Not later than 2 years 

6 after the date on which the Secretary first 

7 awards grants under this section, the Secretary 

8 shall conduct a study to determine— 

9 (i) the capacity of covered entities to 

10 meet the child care needs of communities 

11 within States; 

12 (ii) the kinds of consortia that are 

13 being formed with respect to child care at 

14 the local level to carry out programs funded 

15 under this section; and 

16 (iii) who is using the programs funded 

17 under this section and the income levels of 

18 such individuals. 

19 (B) REPORT.—Not later than 28 months 

20 after the date on which the Secretary first 

21 awards grants under this section, the Secretary 

22 shall prepare and submit to the appropriate 

23 committees of Congress a report on the results of 

24 the study conducted in accordance with subpara25 graph (A). 


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1 (2) 4-YEAR STUDY.— 

2 (A) IN GENERAL.—Not later than 4 years 

3 after the date on which the Secretary first 

4 awards grants under this section, the Secretary 

5 shall conduct a study to determine the number of 

6 child care facilities that are funded through cov7 ered entities that received assistance through a 

8 grant awarded under this section and that re9 main in operation, and the extent to which such 

10 facilities are meeting the child care needs of the 

11 individuals served by such facilities. 

12 (B) REPORT.—Not later than 52 months 

13 after the date on which the Secretary first 

14 awards grants under this section, the Secretary 

15 shall prepare and submit to the appropriate 

16 committees of Congress a report on the results of 

17 the study conducted in accordance with subpara18 graph (A). 

19 (j) DEFINITIONS.—In this section: 

20 (1) COVERED ENTITY.—The term ‘‘covered enti21 ty’’ means a small business or a consortium formed 

22 in accordance with subsection (d)(3). 

23 (2) INDIAN COMMUNITY.—The term ‘‘Indian 

24 community’’ means a community served by an In25 dian tribe or tribal organization. 


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1 (3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The 

2 terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have 

3 the meanings given the terms in section 658P of the 

4 Child Care and Development Block Grant Act of 1990 

5 (42 U.S.C. 9858n). 

6 (4) SMALL BUSINESS.—The term ‘‘small busi7 ness’’ means an employer who employed an average 

8 of at least 2 but not more than 50 employees on the 

9 business days during the preceding calendar year. 

10 (5) STATE.—The term ‘‘State’’ has the meaning 

11 given the term in section 658P of the Child Care and 

12 Development Block Grant Act of 1990 (42 U.S.C. 

13 9858n). 

14 (k) APPLICATION TO INDIAN TRIBES AND TRIBAL OR15 GANIZATIONS.—In this section: 

16 (1) IN GENERAL.—Except as provided in sub17 section (f)(1), and in paragraphs (2) and (3), the 

18 term ‘‘State’’ includes an Indian tribe or tribal orga19 nization. 

20 (2) GEOGRAPHIC REFERENCES.—The term 

21 ‘‘State’’ includes an Indian community in subsections 

22 (c) (the second and third place the term appears), 

23 (d)(1) (the second place the term appears), (d)(3)(A) 

24 (the second place the term appears), and (i)(1)(A)(i). 


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1 (3) STATE-LEVEL ACTIVITIES.—The term ‘‘State2 level activities’’ includes activities at the tribal level. 

3 (l) AUTHORIZATION OF APPROPRIATIONS.— 

4 (1) IN GENERAL.—There is authorized to be ap5 propriated to carry out this section, $50,000,000 for 

6 the period of fiscal years 2008 through 2012. 

7 (2) STUDIES AND ADMINISTRATION.—With re8 spect to the total amount appropriated for such pe9 riod in accordance with this subsection, not more 

10 than $2,500,000 of that amount may be used for ex11 penditures related to conducting studies required 

12 under, and the administration of, this section. 

13 (m) TERMINATION OF PROGRAM.—The program estab14 lished under subsection (a) shall terminate on September 

15 30, 2012. 

16 SEC. 563. STUDY OF UNIVERSAL USE OF ADVANCE PAY17 MENT OF EARNED INCOME CREDIT. 

18 Not later than 180 days after the date of the enactment 

19 of this Act, the Secretary of the Treasury shall report to 

20 Congress on a study of the benefits, costs, risks, and barriers 

21 to workers and to businesses (with a special emphasis on 

22 small businesses) if the advance earned income tax credit 

23 program (under section 3507 of the Internal Revenue Code 

24 of 1986) included all recipients of the earned income tax 


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1 credit (under section 32 of such Code) and what steps would 

2 be necessary to implement such inclusion. 

3 SEC. 564. SENSE OF THE SENATE CONCERNING PERSONAL 

4 SAVINGS. 

5 (a) FINDINGS.—The Senate finds that— 

6 (1) the personal saving rate in the United States 

7 is at its lowest point since the Great Depression, with 

8 the rate having fallen into negative territory; 

9 (2) the United States ranks at the bottom of the 

10 Group of Twenty (G–20) nations in terms of net na11 tional saving rate; 

12 (3) approximately half of all the working people 

13 of the United States work for an employer that does 

14 not offer any kind of retirement plan; 

15 (4) existing savings policies enacted by Congress 

16 provide limited incentives to save for low- and mod17 erate-income families; and 

18 (5) the Social Security program was enacted to 

19 serve as the safest component of a retirement system 

20 that also includes employer-sponsored retirement 

21 plans and personal savings. 

22 (b) SENSE OF THE SENATE.—It is the sense of the Sen23 ate that— 

24 (1) Congress should enact policies that promote 

25 savings vehicles for retirement that are simple, easily 


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1 accessible and provide adequate financial security for 

2 all the people of the United States; 

3 (2) it is important to begin retirement saving as 

4 early as possible to take full advantage of the power 

5 of compound interest; and 

6 (3) regularly contributing money to a finan7 cially-sound investment account is one important 

8 method for helping to achieve one’s retirement goals. 

9 SEC. 565. RENEWAL GRANTS FOR WOMEN’S BUSINESS CEN10 TERS. 

11 (a) IN GENERAL.—Section 29 of the Small Business 

12 Act (15 U.S.C. 656) is amended by adding at the end the 

13 following: 

14 ‘‘(m) CONTINUED FUNDING FOR CENTERS.— 

15 ‘‘(1) IN GENERAL.—A nonprofit organization de16 scribed in paragraph (2) shall be eligible to receive, 

17 subject to paragraph (3), a 3-year grant under this 

18 subsection. 

19 ‘‘(2) APPLICABILITY.—A nonprofit organization 

20 described in this paragraph is a nonprofit organiza21 tion that has received funding under subsection (b) or 

22 (l). 

23 ‘‘(3) APPLICATION AND APPROVAL CRITERIA.— 

24 ‘‘(A) CRITERIA.—Subject to subparagraph 

25 (B), the Administrator shall develop and publish 


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1 criteria for the consideration and approval of 

2 applications by nonprofit organizations under 

3 this subsection. 

4 ‘‘(B) CONTENTS.—Except as otherwise pro5 vided in this subsection, the conditions for par6 ticipation in the grant program under this sub7 section shall be the same as the conditions for 

8 participation in the program under subsection 

9 (l), as in effect on the date of enactment of this 

10 Act. 

11 ‘‘(C) NOTIFICATION.—Not later than 60 

12 days after the date of the deadline to submit ap13 plications for each fiscal year, the Administrator 

14 shall approve or deny any application under 

15 this subsection and notify the applicant for each 

16 such application. 

17 ‘‘(4) AWARD OF GRANTS.— 

18 ‘‘(A) IN GENERAL.—Subject to the avail19 ability of appropriations, the Administrator 

20 shall make a grant for the Federal share of the 

21 cost of activities described in the application to 

22 each applicant approved under this subsection. 

23 ‘‘(B) AMOUNT.—A grant under this sub24 section shall be for not more than $150,000, for 

25 each year of that grant. 


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1 ‘‘(C) FEDERAL SHARE.—The Federal share 

2 under this subsection shall be not more than 50 

3 percent. 

4 ‘‘(D) PRIORITY.—In allocating funds made 

5 available for grants under this section, the Ad6 ministrator shall give applications under this 

7 subsection or subsection (l) priority over first8 time applications under subsection (b). 

9 ‘‘(5) RENEWAL.— 

10 ‘‘(A) IN GENERAL.—The Administrator 

11 may renew a grant under this subsection for ad12 ditional 3-year periods, if the nonprofit organi13 zation submits an application for such renewal 

14 at such time, in such manner, and accompanied 

15 by such information as the Administrator may 

16 establish. 

17 ‘‘(B) UNLIMITED RENEWALS.—There shall 

18 be no limitation on the number of times a grant 

19 may be renewed under subparagraph (A). 

20 ‘‘(n) PRIVACY REQUIREMENTS.— 

21 ‘‘(1) IN GENERAL.—A women’s business center 

22 may not disclose the name, address, or telephone 

23 number of any individual or small business concern 

24 receiving assistance under this section without the 


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1 consent of such individual or small business concern, 

2 unless— 

3 ‘‘(A) the Administrator is ordered to make 

4 such a disclosure by a court in any civil or 

5 criminal enforcement action initiated by a Fed6 eral or State agency; or 

7 ‘‘(B) the Administrator considers such a 

8 disclosure to be necessary for the purpose of con9 ducting a financial audit of a women’s business 

10 center, but a disclosure under this subparagraph 

11 shall be limited to the information necessary for 

12 such audit. 

13 ‘‘(2) ADMINISTRATION USE OF INFORMATION.— 

14 This subsection shall not— 

15 ‘‘(A) restrict Administration access to pro16 gram activity data; or 

17 ‘‘(B) prevent the Administration from using 

18 client information (other than the information 

19 described in subparagraph (A)) to conduct client 

20 surveys. 

21 ‘‘(3) REGULATIONS.—The Administrator shall 

22 issue regulations to establish standards for requiring 

23 disclosures during a financial audit under paragraph 

24 (1)(B).’’. 


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1 (b) REPEAL.—Section 29(l) of the Small Business Act 

2 (15 U.S.C. 656(l)) is repealed effective October 1 of the first 

3 full fiscal year after the date of enactment of this Act. 

4 (c) TRANSITIONAL RULE.—Notwithstanding any other 

5 provision of law, a grant or cooperative agreement that was 

6 awarded under subsection (l) of section 29 of the Small 

7 Business Act (15 U.S.C. 656), on or before the day before 

8 the date described in subsection (b) of this section, shall re9 main in full force and effect under the terms, and for the 

10 duration, of such grant or agreement. 

11 SEC. 566. REPORTS ON ACQUISITIONS OF ARTICLES, MATE12 RIALS, AND SUPPLIES MANUFACTURED OUT13 SIDE THE UNITED STATES. 

14 Section 2 of the Buy American Act (41 U.S.C. 10a) 

15 is amended— 

16 (1) by striking ‘‘Notwithstanding’’ and inserting 

17 the following: 

18 ‘‘(a) IN GENERAL.—Notwithstanding’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(b) REPORTS.— 

21 ‘‘(1) IN GENERAL.—Not later than 180 days 

22 after the end of each of fiscal years 2007 through 

23 2011, the head of each Federal agency shall submit to 

24 the Committee on Homeland Security and Govern25 mental Affairs of the Senate and the Committee on 


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1 Oversight and Government Reform of the House of 

2 Representatives a report on the amount of the acqui3 sitions made by the agency in that fiscal year of arti4 cles, materials, or supplies purchased from entities 

5 that manufacture the articles, materials, or supplies 

6 outside of the United States. 

7 ‘‘(2) CONTENTS OF REPORT.—The report re8 quired by paragraph (1) shall separately include, for 

9 the fiscal year covered by such report— 

10 ‘‘(A) the dollar value of any articles, mate11 rials, or supplies that were manufactured outside 

12 the United States; 

13 ‘‘(B) an itemized list of all waivers granted 

14 with respect to such articles, materials, or sup15 plies under this Act, and a citation to the treaty, 

16 international agreement, or other law under 

17 which each waiver was granted; 

18 ‘‘(C) if any articles, materials, or supplies 

19 were acquired from entities that manufacture ar20 ticles, materials, or supplies outside the United 

21 States, the specific exception under this section 

22 that was used to purchase such articles, mate23 rials, or supplies; and 

24 ‘‘(D) a summary of— 


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1 ‘‘(i) the total procurement funds ex2 pended on articles, materials, and supplies 

3 manufactured inside the United States; and 

4 ‘‘(ii) the total procurement funds ex5 pended on articles, materials, and supplies 

6 manufactured outside the United States. 

7 ‘‘(3) PUBLIC AVAILABILITY.—The head of each 

8 Federal agency submitting a report under paragraph 

9 (1) shall make the report publicly available to the 

10 maximum extent practicable. 

11 ‘‘(4) EXCEPTION FOR INTELLIGENCE COMMU12 NITY.—This subsection shall not apply to acquisitions 

13 made by an agency, or component thereof, that is an 

14 element of the intelligence community as specified in, 

15 or designated under, section 3(4) of the National Se16 curity Act of 1947 (50 U.S.C. 401a(4)).’’. 

17 SEC. 567. SENSE OF THE SENATE REGARDING REPEAL OF 

18 1993 INCOME TAX INCREASE ON SOCIAL SE19 CURITY BENEFITS. 

20 It is the sense of the Senate that Congress should repeal 

21 the 1993 tax increase on Social Security benefits and elimi22 nate wasteful spending, such as spending on unnecessary 

23 tax loopholes, in order to fully offset the cost of such repeal 

24 and avoid forcing taxpayers to pay substantially more in25 terest to foreign creditors. 


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1 SEC. 568. SENSE OF THE SENATE REGARDING PERMANENT 

2 TAX INCENTIVES TO MAKE EDUCATION MORE 

3 AFFORDABLE AND MORE ACCESSIBLE FOR 

4 AMERICAN FAMILIES. 

5 It is the sense of the Senate that Congress should make 

6 permanent the tax incentives to make education more af7 fordable and more accessible for American families and 

8 eliminate wasteful spending, such as spending on unneces9 sary tax loopholes, in order to fully offset the cost of such 

10 incentives and avoid forcing taxpayers to pay substantially 

11 more interest to foreign creditors. 

12 SEC. 569. RESPONSIBLE GOVERNMENT CONTRACTOR RE13 QUIREMENTS. 

14 Section 274A(e) of the Immigration and Nationality 

15 Act (8 U.S.C. 1324a(e)) is amended by adding at the end 

16 the following new paragraph: 

17 ‘‘(10) PROHIBITION ON AWARD OF GOVERNMENT

18 CONTRACTS, GRANTS, AND AGREEMENTS.— 

19 ‘‘(A) EMPLOYERS WITH NO CONTRACTS, 

20 GRANTS, OR AGREEMENTS.— 

21 ‘‘(i) IN GENERAL.—Subject to clause 

22 (iii) and subparagraph (C), if an employer 

23 who does not hold a Federal contract, grant, 

24 or cooperative agreement is determined to 

25 have violated this section, the employer shall 

26 be debarred from the receipt of a Federal 


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1 contract, grant, or cooperative agreement 

2 for a period of 7 years. 

3 ‘‘(ii) PLACEMENTON EXCLUDED

4 LIST.—The Secretary of Homeland Security 

5 or the Attorney General shall advise the Ad6 ministrator of General Services of the de7 barment of an employer under clause (i) 

8 and the Administrator of General Services 

9 shall list the employer on the List of Parties 

10 Excluded from Federal Procurement and 

11 Nonprocurement Programs for a period of 7 

12 years. 

13 ‘‘(iii) WAIVER.— 

14 ‘‘(I) AUTHORITY.—The Adminis15 trator of General Services, in consulta16 tion with the Secretary of Homeland 

17 Security and the Attorney General, 

18 may waive operation of clause (i) or 

19 may limit the duration or scope of a 

20 debarment under clause (i) if such 

21 waiver or limitation is necessary to 

22 national defense or in the interest of 

23 national security. 

24 ‘‘(II) NOTIFICATION TO CON25 GRESS.—If the Administrator grants a 


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1 waiver or limitation described in sub2 clause (I), the Administrator shall sub3 mit to each member of the Committee 

4 on the Judiciary of the Senate and of 

5 the Committee on the Judiciary of the 

6 House of Representatives immediate 

7 notice of such waiver or limitation. 

8 ‘‘(III) PROHIBITION ON JUDICIAL

9 REVIEW.—The decision of whether to 

10 debar or take alternative action under 

11 this clause shall not be judicially re12 viewed. 

13 ‘‘(B) EMPLOYERS WITH CONTRACTS, 

14 GRANTS, OR AGREEMENTS.— 

15 ‘‘(i) IN GENERAL.—Subject to clause 

16 (iii) and subclause (C), an employer who 

17 holds a Federal contract, grant, or coopera18 tive agreement and is determined to have 

19 violated this section shall be debarred from 

20 the receipt of new Federal contracts, grants, 

21 or cooperative agreements for a period of 10 

22 years. 

23 ‘‘(ii) NOTICE TO AGENCIES.—Prior to 

24 debarring the employer under clause (i), the 

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1 operation with the Administrator of Gen2 eral Services, shall advise any agency or de3 partment holding a contract, grant, or coop4 erative agreement with the employer of the 

5 Government’s intention to debar the em6 ployer from the receipt of new Federal con7 tracts, grants, or cooperative agreements for 

8 a period of 10 years. 

9 ‘‘(iii) WAIVER.— 

10 ‘‘(I) AUTHORITY.—After consider11 ation of the views of any agency or de12 partment that holds a contract, grant, 

13 or cooperative agreement with the em14 ployer, the Administrator of General 

15 Services, in consultation with the Sec16 retary of Homeland Security and the 

17 Attorney General, may waive oper18 ation of clause (i) or may limit the du19 ration or scope of the debarment under 

20 clause (i) if such waiver or limitation 

21 is necessary to the national defense or 

22 in the interest of national security. 

23 ‘‘(II) NOTIFICATION TO CON24 GRESS.—If the Administrator grants a 

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1 clause (I), the Administrator shall sub2 mit to each member of the Committee 

3 on the Judiciary of the Senate and of 

4 the Committee on the Judiciary of the 

5 House of Representatives immediate 

6 notice of such waiver or limitation. 

7 ‘‘(III) PROHIBITION ON JUDICIAL

8 REVIEW.—The decision of whether to 

9 debar or take alternate action under 

10 this clause shall not be judicially re11 viewed. 

12 ‘‘(C) EXEMPTION FROM PENALTY FOR EM13 PLOYERS PARTICIPATING IN THE BASIC PILOT

14 PROGRAM.—In the case of imposition on an em15 ployer of a debarment from the receipt of a Fed16 eral contract, grant, or cooperative agreement 

17 under subparagraph (A) or (B), that penalty 

18 shall be waived if the employer establishes that 

19 the employer was voluntarily participating in 

20 the basic pilot program under section 403(a) of 

21 the Illegal Immigration Reform and Immigrant 

22 Responsibility Act of 1996 (8 U.S.C. 1324a note) 

23 at the time of the violations of this section that 

24 resulted in the debarment.’’. 


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1 SEC. 570. DISABILITY PREFERENCE PROGRAM FOR TAX 

2 COLLECTION CONTRACTS. 

3 (a) IN GENERAL.—Section 6306 (relating to qualified 

4 tax collection contracts) is amended— 

5 (1) by striking ‘‘Nothing’’ in subsection (a) and 

6 inserting ‘‘Except as provided in subsection (c), noth7 ing’’, 

8 (2) by redesignating subsections (c), (d), (e), and 

9 (f) as subsections (d), (e), (f), and (g), respectively, 

10 and 

11 (3) by inserting after subsection (b) the following 

12 new subsection: 

13 ‘‘(c) DISABILITY PREFERENCE PROGRAM FOR TAX

14 COLLECTION CONTRACTS.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall provide 

16 a qualifying disability preference to any program 

17 under which any qualified tax collection contract is 

18 awarded on or after the effective date of this sub19 section and shall ensure compliance with the require20 ments of paragraph (3). 

21 ‘‘(2) QUALIFYING DISABILITY PREFERENCE.— 

22 ‘‘(A) IN GENERAL.—For purposes of this 

23 subsection, the term ‘qualifying disability pref24 erence’ means a preference pursuant to which at 

25 least 10 percent (in both number and aggregate 

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1 fied tax collection contracts are awarded to per2 sons satisfying the following criteria: 

3 ‘‘(i) Such person employs within the 

4 United States at least 50 severely disabled 

5 individuals. 

6 ‘‘(ii) Such person shall agree as an en7 forceable condition of its bid for a qualified 

8 tax collection contract that within 90 days 

9 after the date such contract is awarded, not 

10 less than 35 percent of the employees of such 

11 person employed in connection with pro12 viding services under such contract shall— 

13 ‘‘(I) be hired after the date such 

14 contract is awarded, and 

15 ‘‘(II) be severely disabled individ16 uals. 

17 ‘‘(B) DETERMINATION OF SATISFACTION OF

18 CRITERIA.—Within 60 days after the end of the 

19 period specified in subparagraph (A)(ii), the 

20 Secretary shall determine whether such person 

21 has met the 35 percent requirement specified in 

22 such subparagraph, and if such requirement has 

23 not been met, shall terminate the contract for 

24 nonperformance. For purposes of determining 

25 whether such 35 percent requirement has been 


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1 satisfied, severely disabled individuals providing 

2 services under such contract shall not include 

3 any severely disabled individuals who were 

4 counted toward satisfaction of the 50-employee 

5 requirement specified in subparagraph (A)(i), 

6 unless such person replaced such individuals by 

7 hiring additional severely disabled individuals 

8 who do not perform services under such contract. 

9 ‘‘(3) PROGRAM-WIDE EMPLOYMENTOF SEVERELY

10 DISABLED INDIVIDUALS.—Not less than 15 percent of 

11 all individuals hired by all persons to whom tax col12 lection contracts are issued by the Secretary under 

13 this section, to perform work under such tax collection 

14 contracts, shall qualify as severely disabled individ15 uals. 

16 ‘‘(4) SEVERELY DISABLED INDIVIDUAL.—For 

17 purposes of this subsection, the term ‘severely disabled 

18 individual’ means any one of the following: 

19 ‘‘(A) Any veteran of the United States 

20 Armed Forces with— 

21 ‘‘(i) a disability determined by the 

22 Secretary of Veterans Affairs to be service23 connected, or 

24 ‘‘(ii) a disability deemed by statute to 

25 be service-connected. 


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1 ‘‘(B) Any individual who is a disabled ben2 eficiary (as defined in section 1148(k)(2) of the 

3 Social Security Act (42 U.S.C. 1320b–19(k)(2)) 

4 or who would be considered to be such a disabled 

5 beneficiary but for having income or assets in ex6 cess of the income or asset eligibility limits es7 tablished under title II or XVI of the Social Se8 curity Act, respectively.’’. 

9 (b) REPORTBY GOVERNMENT ACCOUNTABILITY OF10 FICE.— 

11 (1) IN GENERAL.—The Comptroller General of 

12 the United States shall conduct a study of the effec13 tiveness and efficiency of the use of private contrac14 tors for Internal Revenue Service debt collection. The 

15 study required by this paragraph shall be completed 

16 in time to be taken into account by Congress before 

17 any new contracting is carried out under section 

18 6306 of the Internal Revenue Code of 1986 in years 

19 following 2008. 

20 (2) STUDY OF COMPARABLE EFFORTS.—As part 

21 of the study required under paragraph (1), the Comp22 troller General shall— 

23 (A) make every effort to determine the rel24 ative effectiveness and efficiency of debt collection 

25 contracting by Federal staff compared to private 


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1 contractors, using a cost calculation for both 

2 Federal staff and private contractors which in3 cludes all benefits and overhead costs, 

4 (B) compare the cost effectiveness of the con5 tracting approach of the Department of the 

6 Treasury to that of the Department of Edu7 cation’s Office of Student Financial Assistance, 

8 and 

9 (C) survey State tax debt collection experi10 ences for lessons that may be applicable to the 

11 Internal Revenue Service collection efforts. 

12 (c) EFFECTIVE DATE.—The amendments made by this 

13 section shall apply to any tax collection contract awarded 

14 on or after the date of the enactment of this Act. 

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

16 Veterans’ Care, Katrina Recovery, and Iraq Accountability 

17 Appropriations Act, 2007’’. 

Passed the House of Representatives March 23, 

2007. 

Attest: LORRAINE C. MILLER, 

Clerk. 

Passed the Senate March 29, 2007. 

Attest: NANCY ERICKSON, 

Secretary. 


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