In the Senate of the United States,

March 29, 2007.

Resolved, That the bill from the House of Representatives (H.R. 1591) entitled ‘‘An Act making emergency supplemental appropriations for the fiscal year ending September

30, 2007, and for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 That the following sums are appropriated, out of any

2 money in the Treasury not otherwise appropriated, for the

3 fiscal year ending September 30, 2007, and for other pur4 poses, namely:
 †

2

HR 1591 EAS

1 TITLE I

2 GLOBAL WAR ON TERROR SUPPLEMENTAL

3 APPROPRIATIONS

4 CHAPTER 1

5 DEPARTMENT OF AGRICULTURE

6 FOREIGN AGRICULTURAL SERVICE

7 PUBLIC LAW 480 TITLE II GRANTS

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

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

10 recoverable, and unrecovered prior years’ costs, including

11 interest thereon, under the Agricultural Trade Development

12 and Assistance Act of 1954, for commodities supplied in

13 connection with dispositions abroad under title II of said

14 Act, $475,000,000, to remain available until expended.

15 GENERAL PROVISION—THIS CHAPTER

16 SEC. 1101. There is hereby appropriated $82,000,000

17 to reimburse the Commodity Credit Corporation for the re18 lease of eligible commodities under section 302(f)(2)(A) of

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

20 1736f–1): Provided, That any such funds made available

21 to reimburse the Commodity Credit Corporation shall only

22 be used to replenish the Bill Emerson Humanitarian Trust.
†

3

HR 1591 EAS

1 CHAPTER 2

2 DEPARTMENT OF JUSTICE

3 GENERAL ADMINISTRATION

4 OFFICE OF THE INSPECTOR GENERAL

5 For an additional amount for ‘‘Office of the Inspector

6 General’’, $500,000, to remain available until September

7 30, 2008.

8 LEGAL ACTIVITIES

9 SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

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

11 General Legal Activities’’, $4,093,000, to remain available

12 until September 30, 2008.

13 SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

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

15 United States Attorneys’’, $12,500,000, to remain available

16 until September 30, 2008.

17 UNITED STATES MARSHALS SERVICE

18 SALARIES AND EXPENSES, UNITED STATES MARSHALS

19 SERVICE

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

21 United States Marshals Service’’, $32,500,000, to remain

22 available until September 30, 2008: Provided, That of the

23 amounts made available in this Act for ‘‘Educational and

24 Cultural Exchange Programs’’, $15,000,000 is rescinded.
†

4

HR 1591 EAS

1 NATIONAL SECURITY DIVISION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses,’’ $1,736,000, to remain available until September

5 30, 2008.

6 FEDERAL BUREAU OF INVESTIGATION

7 SALARIES AND EXPENSES

8 For an additional amount for ‘‘Salaries and Ex9 penses’’, $348,260,000, of which $338,260,000 is to remain

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

11 remain available until expended to implement corrective ac12 tions in response to the findings and recommendations in

13 the Department of Justice Office of Inspector General report

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

15 Use of National Security Letters’’.

16 DRUG ENFORCEMENT ADMINISTRATION

17 SALARIES AND EXPENSES

18 For an additional amount for ‘‘Salaries and Ex19 penses’’, $25,100,000, to remain available until September

20 30, 2008.
†

5

HR 1591 EAS

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.

7 FEDERAL PRISON SYSTEM

8 SALARIES AND EXPENSES

9 For an additional amount for ‘‘Salaries and Ex10 penses’’, $17,000,000, to remain available until September

11 30, 2008.

12 CHAPTER 3

13 DEPARTMENT OF DEFENSE—MILITARY

14 MILITARY PERSONNEL

15 MILITARY PERSONNEL, ARMY

16 For an additional amount for ‘‘Military Personnel,

17 Army’’, $8,870,270,000.

18 MILITARY PERSONNEL, NAVY

19 For an additional amount for ‘‘Military Personnel,

20 Navy’’, $1,100,410,000.

21 MILITARY PERSONNEL, MARINE CORPS

22 For an additional amount for ‘‘Military Personnel,

23 Marine Corps’’, $1,495,827,000.
†

6

HR 1591 EAS

1 MILITARY PERSONNEL, AIR FORCE

2 For an additional amount for ‘‘Military Personnel,

3 Air Force’’, $1,218,587,000.

4 RESERVE PERSONNEL, ARMY

5 For an additional amount for ‘‘Reserve Personnel,

6 Army’’, $147,244,000.

7 RESERVE PERSONNEL, NAVY

8 For an additional amount for ‘‘Reserve Personnel,

9 Navy’’, $77,523,000.

10 RESERVE PERSONNEL, AIR FORCE

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

12 Force’’, $9,073,000.

13 NATIONAL GUARD PERSONNEL, ARMY

14 For an additional amount for ‘‘National Guard Per15 sonnel, Army’’, $474,978,000.

16 NATIONAL GUARD PERSONNEL, AIR FORCE

17 For an additional amount for ‘‘National Guard Per18 sonnel, Air Force’’, $41,533,000.

19 OPERATION AND MAINTENANCE

20 OPERATION AND MAINTENANCE, ARMY

21 For an additional amount for ‘‘Operation and Mainte22 nance, Army’’, $20,373,379,000.
†

7

HR 1591 EAS

1 OPERATION AND MAINTENANCE, NAVY

2 (INCLUDING TRANSFER OF FUNDS)

3 For an additional amount for ‘‘Operation and Mainte4 nance, Navy’’, $4,865,003,000, of which $120,293,000 shall

5 be transferred to Coast Guard, ‘‘Operating Expenses’’, for

6 reimbursement for activities in support of activities re7 quested by the Navy.

8 OPERATION AND MAINTENANCE, MARINE CORPS

9 For an additional amount for ‘‘Operation and Mainte10 nance, Marine Corps’’, $1,101,594,000.

11 OPERATION AND MAINTENANCE, AIR FORCE

12 For an additional amount for ‘‘Operation and Mainte13 nance, Air Force’’, $6,685,881,000.

14 OPERATION AND MAINTENANCE, DEFENSE-WIDE

15 For an additional amount for ‘‘Operation and Mainte16 nance, Defense-Wide’’, $2,790,669,000, of which—

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

18 Combatant Commander Initiative Fund, to be used in

19 support of Operation Iraqi Freedom and Operation

20 Enduring Freedom; and

21 (2) not to exceed $200,000,000, to remain avail22 able until expended, may be used for payments to re23 imburse Pakistan, Jordan, and other key cooperating

24 nations, for logistical, military, and other support

25 provided to United States military operations, not-
†

8

HR 1591 EAS

1 withstanding any other provision of law: Provided,

2 That such payments may be made in such amounts

3 as the Secretary of Defense, with the concurrence of

4 the Secretary of State, and in consultation with the

5 Director of the Office of Management and Budget,

6 may determine, in his discretion, based on docu7 mentation determined by the Secretary of Defense to

8 adequately account for the support provided, and such

9 determination is final and conclusive upon the ac10 counting officers of the United States, and 15 days

11 following notification to the appropriate congressional

12 committees: Provided further, That the Secretary of

13 Defense shall provide quarterly reports to the congres14 sional defense committees on the use of funds provided

15 in this paragraph.

16 OPERATION AND MAINTENANCE, ARMY RESERVE

17 For an additional amount for ‘‘Operation and Mainte18 nance, Army Reserve’’, $74,049,000.

19 OPERATION AND MAINTENANCE, NAVY RESERVE

20 For an additional amount for ‘‘Operation and Mainte21 nance, Navy Reserve’’, $111,066,000.

22 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

23 For an additional amount for ‘‘Operation and Mainte24 nance, Marine Corps Reserve’’, $13,591,000.
†

9

HR 1591 EAS

1 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

2 For an additional amount for ‘‘Operation and Mainte3 nance, Air Force Reserve’’, $10,160,000.

4 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

5 For an additional amount for ‘‘Operation and Mainte6 nance, Army National Guard’’, $83,569,000.

7 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

8 For an additional amount for ‘‘Operation and Mainte9 nance, Air National Guard’’, $38,429,000.

10 AFGHANISTAN SECURITY FORCES FUND

11 For an additional amount for ‘‘Afghanistan Security

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

13 September 30, 2008.

14 IRAQ SECURITY FORCES FUND

15 For an additional amount for ‘‘Iraq Security Forces

16 Fund’’, $3,842,300,000, to remain available until Sep17 tember 30, 2008.

18 IRAQ FREEDOM FUND

19 (INCLUDING TRANSFER OF FUNDS)

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

21 $455,600,000, to remain available for transfer until Sep22 tember 30, 2008.
†

10

HR 1591 EAS

1 JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

2 For an additional amount for ‘‘Joint Improvised Ex3 plosive Device Defeat Fund’’, $2,432,800,000, to remain

4 available until September 30, 2009.

5 PROCUREMENT

6 AIRCRAFT PROCUREMENT, ARMY

7 For an additional amount for ‘‘Aircraft Procurement,

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

9 30, 2009.

10 MISSILE PROCUREMENT, ARMY

11 For an additional amount for ‘‘Missile Procurement,

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

13 30, 2009.

14 PROCUREMENT OF WEAPONS AND TRACKED COMBAT

15 VEHICLES, ARMY

16 For an additional amount for ‘‘Procurement of Weap17 ons and Tracked Combat Vehicles, Army’’, $3,400,315,000,

18 to remain available until September 30, 2009.

19 PROCUREMENT OF AMMUNITION, ARMY

20 For an additional amount for ‘‘Procurement of Am21 munition, Army’’, $681,500,000, to remain available until

22 September 30, 2009.
†

11

HR 1591 EAS

1 OTHER PROCUREMENT, ARMY

2 For an additional amount for ‘‘Other Procurement,

3 Army’’, $10,589,272,000, to remain available until Sep4 tember 30, 2009.

5 AIRCRAFT PROCUREMENT, NAVY

6 For an additional amount for ‘‘Aircraft Procurement,

7 Navy’’, $963,903,000, to remain available until September

8 30, 2009.

9 WEAPONS PROCUREMENT, NAVY

10 For an additional amount for ‘‘Weapons Procurement,

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

12 30, 2009.

13 PROCUREMENT OF AMMUNITION, NAVY AND MARINE

14 CORPS

15 For an additional amount for ‘‘Procurement of Am16 munition, Navy and Marine Corps’’, $159,833,000, to re17 main available until September 30, 2009.

18 OTHER PROCUREMENT, NAVY

19 For an additional amount for ‘‘Other Procurement,

20 Navy’’, $722,506,000, to remain available until September

21 30, 2009.

22 PROCUREMENT, MARINE CORPS

23 For an additional amount for ‘‘Procurement, Marine

24 Corps’’, $1,703,389,000, to remain available until Sep25 tember 30, 2009.
†

12

HR 1591 EAS

1 AIRCRAFT PROCUREMENT, AIR FORCE

2 For an additional amount for ‘‘Aircraft Procurement,

3 Air Force’’, $1,431,756,000, to remain available until Sep4 tember 30, 2009.

5 MISSILE PROCUREMENT, AIR FORCE

6 For an additional amount for ‘‘Missile Procurement,

7 Air Force’’, $78,900,000, to remain available until Sep8 tember 30, 2009.

9 PROCUREMENT OF AMMUNITION, AIR FORCE

10 For an additional amount for ‘‘Procurement of Am11 munition, Air Force’’, $6,000,000, to remain available until

12 September 30, 2009.

13 OTHER PROCUREMENT, AIR FORCE

14 For an additional amount for ‘‘Other Procurement,

15 Air Force’’, $1,972,131,000, to remain available until Sep16 tember 30, 2009.

17 PROCUREMENT, DEFENSE-WIDE

18 For an additional amount for ‘‘Procurement, Defense19 Wide’’, $903,092,000, to remain available until September

20 30, 2009.

21 NATIONAL GUARD AND RESERVE EQUIPMENT

22 For an additional amount for ‘‘National Guard and

23 Reserve Equipment’’, $1,000,000,000, to remain available

24 until September 30, 2009.
†

13

HR 1591 EAS

1 RESEARCH, DEVELOPMENT, TEST AND

2 EVALUATION

3 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

4 For an additional amount for ‘‘Research, Develop5 ment, Test and Evaluation, Army’’, $125,576,000, to re6 main available until September 30, 2008.

7 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

8 For an additional amount for ‘‘Research, Develop9 ment, Test and Evaluation, Navy’’, $308,212,000, to re10 main available until September 30, 2008.

11 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR

12 FORCE

13 For an additional amount for ‘‘Research, Develop14 ment, Test and Evaluation, Air Force’’, $233,869,000, to

15 remain available until September 30, 2008.

16 RESEARCH, DEVELOPMENT, TEST AND EVALUATION,

17 DEFENSE-WIDE

18 For an additional amount for ‘‘Research, Develop19 ment, Test and Evaluation, Defense-Wide’’, $522,804,000,

20 to remain available until September 30, 2008.

21 REVOLVING AND MANAGEMENT FUNDS

22 NATIONAL DEFENSE SEALIFT FUND

23 For an additional amount for ‘‘National Defense Sea24 lift Fund’’, $5,000,000.
†

14

HR 1591 EAS

1 DEFENSE WORKING CAPITAL FUNDS

2 For an additional amount for ‘‘Defense Working Cap3 ital Funds’’, $1,315,526,000.

4 OTHER DEPARTMENT OF DEFENSE PROGRAMS

5 DEFENSE HEALTH PROGRAM

6 For an additional amount for ‘‘Defense Health Pro7 gram’’, $2,466,847,000; of which $2,277,147,000 shall be for

8 operation and maintenance; of which $118,000,000, to re9 main available for obligation until September 30, 2009,

10 shall be for Procurement; and of which $71,700,000, to re11 main available for obligation until September 30, 2008,

12 shall be for Research, development, test and evaluation.

13 DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES,

14 DEFENSE

15 (INCLUDING TRANSFER OF FUNDS)

16 For an additional amount for ‘‘Drug Interdiction and

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

18 available until expended: Provided, That these funds may

19 be used only for such activities related to Afghanistan and

20 Central Asia: Provided further, That the Secretary of De21 fense may transfer such funds only to appropriations for

22 military personnel; operation and maintenance; procure23 ment; and research, development, test and evaluation: Pro24 vided further, That the funds transferred shall be merged

25 with and be available for the same purposes and for the
†

15

HR 1591 EAS

1 same time period as the appropriation to which transferred:

2 Provided further, That the transfer authority provided in

3 this paragraph is in addition to any other transfer author4 ity available to the Department of Defense: Provided fur5 ther, That upon a determination that all or part of the

6 funds transferred from this appropriation are not necessary

7 for the purposes provided herein, such amounts may be

8 transferred back to this appropriation.

9 RELATED AGENCY

10 INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

11 For an additional amount for ‘‘Intelligence Commu12 nity Management Account’’, $71,726,000.

13 GENERAL PROVISIONS—THIS CHAPTER

14 SEC. 1301. Appropriations provided in this chapter

15 are available for obligation until September 30, 2007, un16 less otherwise provided in this chapter.

17 (TRANSFER OF FUNDS)

18 SEC. 1302. Upon his determination that such action

19 is necessary in the national interest, the Secretary of De20 fense may transfer between appropriations up to

21 $3,500,000,000 of the funds made available to the Depart22 ment of Defense in this title: Provided, That the Secretary

23 shall notify the Congress promptly of each transfer made

24 pursuant to the authority in this section: Provided further,

25 That the authority provided in this section is in addition

26 to any other transfer authority available to the Department
†

16

HR 1591 EAS

1 of Defense and is subject to the same terms and conditions

2 as the authority provided in section 8005 of the Department

3 of Defense Appropriations Act, 2007 (Public Law 109–289;

4 120 Stat. 1257), except for the fourth proviso: Provided fur5 ther, That funds previously transferred to the ‘‘Joint Impro6 vised Explosive Device Defeat Fund’’ and the ‘‘Iraq Secu7 rity Forces Fund’’ under the authority of section 8005 of

8 Public Law 109–289 and transferred back to their source

9 appropriations accounts shall not be taken into account for

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

11 be transferred under section 8005.

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

13 made available by the transfer of funds in or pursuant to

14 this chapter, for intelligence activities are deemed to be spe15 cifically authorized by the Congress for purposes of section

16 504(a)(1) of the National Security Act of 1947 (50 U.S.C.

17 414(a)(1)).

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

19 may be used to finance programs or activities denied by

20 Congress in fiscal years 2006 or 2007 appropriations to the

21 Department of Defense or to initiate a procurement or re22 search, development, test and evaluation new start program

23 without prior written notification to the congressional de24 fense committees.
†

17

HR 1591 EAS

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

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

3 amounts in or credited to the Defense Cooperation Account,

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

5 funds of the Department of Defense as he shall determine

6 for use consistent with the purposes for which such funds

7 were contributed and accepted: Provided, That such

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

9 appropriation to which transferred: Provided further, That

10 the Secretary shall report to the Congress all transfers made

11 pursuant to this authority.

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

13 Of the amount appropriated by this title under the heading,

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

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

16 counter-drug activities of the Governments of Afghanistan,

17 Kazakhstan, and Pakistan: Provided, That such support

18 shall be in addition to support provided for the counter19 drug activities of such Governments under any other provi20 sion of the law.

21 (b) TYPES OF SUPPORT.—

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

23 this section, the support that may be provided under

24 the authority in this section shall be limited to the

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

18

HR 1591 EAS

1 National Defense Authorization Act for Fiscal Year

2 1998 (Public Law 105–85, as amended by Public

3 Laws 106–398, 108–136, and 109–364) and condi4 tions on the provision of support as contained in sec5 tion 1033 shall apply for fiscal year 2007.

6 (2) The Secretary of Defense may transfer vehi7 cles, aircraft, and detection, interception, monitoring

8 and testing equipment to said Governments for

9 counter-drug activities.

10 SEC. 1307. (a) From funds made available for oper11 ations and maintenance in this title to the Department of

12 Defense, not to exceed $456,400,000 may be used, notwith13 standing any other provision of law, to fund the Com14 mander’s Emergency Response Program, for the purpose of

15 enabling military commanders in Iraq and Afghanistan to

16 respond to urgent humanitarian relief and reconstruction

17 requirements within their areas of responsibility by car18 rying out programs that will immediately assist the Iraqi

19 and Afghan people.

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

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

22 Defense shall submit to the congressional defense committees

23 a report regarding the source of funds and the allocation

24 and use of funds during that quarter that were made avail25 able pursuant to the authority provided in this section or
†

19

HR 1591 EAS

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

2 programs under subsection (a).

3 SEC. 1308. During fiscal year 2007, supervision and

4 administration costs associated with projects carried out

5 with funds appropriated to ‘‘Afghanistan Security Forces

6 Fund’’ or ‘‘Iraq Security Forces Fund’’ in this chapter may

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

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

9 and administration costs include all in-house Government

10 costs.

11 SEC. 1309. Section 1005(c)(2) of the National Defense

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

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

14 ‘‘$376,446,000’’.

15 SEC. 1310. None of the funds appropriated or other16 wise made available by this or any other Act shall be obli17 gated or expended by the United States Government for a

18 purpose as follows:

19 (1) To establish any military installation or base

20 for the purpose of providing for the permanent sta21 tioning of United States Armed Forces in Iraq.

22 (2) To exercise United States control over any

23 oil resource of Iraq.

24 SEC. 1311. None of the funds made available in this

25 Act may be used in contravention of the following laws en-
†

20

HR 1591 EAS

1 acted or regulations promulgated to implement the United

2 Nations Convention Against Torture and Other Cruel, In3 human or Degrading Treatment or Punishment (done at

4 New York on December 10, 1984):

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

6 Code;

7 (2) Section 2242 of the Foreign Affairs Reform

8 and Restructuring Act of 1998 (division G of Public

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

10 note) and regulations prescribed thereto, including

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

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

13 Regulations; and

14 (3) Sections 1002 and 1003 of the Department of

15 Defense, Emergency Supplemental Appropriations to

16 Address Hurricanes in the Gulf of Mexico, and Pan17 demic Influenza Act, 2006 (Public Law 109–148).

18 SEC. 1312. Section 9007 of Public Law 109–289 is

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

20 SEC. 1313. INSPECTION OF MILITARY MEDICAL

21 TREATMENT FACILITIES, MILITARY QUARTERS HOUSING

22 MEDICAL HOLD PERSONNEL, AND MILITARY QUARTERS

23 HOUSING MEDICAL HOLDOVER PERSONNEL. (A) PERIODIC

24 INSPECTION REQUIRED.—
†

21

HR 1591 EAS

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

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

3 thereafter, the Secretary of Defense shall inspect each

4 facility of the Department of Defense as follows:

5 (A) Each military medical treatment facil6 ity.

7 (B) Each military quarters housing medical

8 hold personnel.

9 (C) Each military quarters housing medical

10 holdover personnel.

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

12 under this subsection is to ensure that the facility or

13 quarters concerned meets acceptable standards for the

14 maintenance and operation of medical facilities,

15 quarters housing medical hold personnel, or quarters

16 housing medical holdover personnel, as applicable.

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

18 section, acceptable standards for the operation and mainte19 nance of military medical treatment facilities, military

20 quarters housing medical hold personnel, or military quar21 ters housing medical holdover personnel are each of the fol22 lowing:

23 (1) Generally accepted standards for the accredi24 tation of non-military medical facilities, or for facili25 ties used to quarter individuals with medical condi-
†

22

HR 1591 EAS

1 tions that may require medical supervision, as appli2 cable, in the United States.

3 (2) Standards under the Americans with Dis4 abilities Act of 1990 (42 U.S.C. 12101 et seq.).

5 (c) ADDITIONAL INSPECTIONS ON IDENTIFIED DEFI6 CIENCIES.—

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

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

9 quarters described in paragraph (1) of that

10 subsection—

11 (A) the commander of such facility or quar12 ters, as applicable, shall submit to the Secretary

13 a detailed plan to correct the deficiency; and

14 (B) the Secretary shall reinspect such facil15 ity or quarters, as applicable, not less often than

16 once every 180 days until the deficiency is cor17 rected.

18 (2) CONSTRUCTION WITH OTHER INSPECTIONS.—

19 An inspection of a facility or quarters under this sub20 section is in addition to any inspection of such facil21 ity or quarters under subsection (a).

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

23 the report on each inspection conducted under subsections

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

23

HR 1591 EAS

1 applicable military medical command and to the congres2 sional defense committees.

3 (e) REPORT ON STANDARDS.—In the event no stand4 ards for the maintenance and operation of military medical

5 treatment facilities, military quarters housing medical hold

6 personnel, or military quarters housing medical holdover

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

8 or such standards as do exist do not meet acceptable stand9 ards for the maintenance and operation of such facilities

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

11 later than 30 days after that date, submit to Congress a

12 report setting forth the plan of the Secretary to ensure—

13 (1) the adoption by the Department of standards

14 for the maintenance and operation of military med15 ical facilities, military quarters housing medical hold

16 personnel, or military quarters housing medical hold17 over personnel, as applicable, that meet—

18 (A) acceptable standards for the mainte19 nance and operation of such facilities or quar20 ters, as the case may be; and

21 (B) standards under the Americans with

22 Disabilities Act of 1990; and

23 (2) the comprehensive implementation of the

24 standards adopted under paragraph (1) at the earliest

25 date practicable.
†

24

HR 1591 EAS

1 SEC. 1314. From funds made available for the ‘‘Iraq

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

3 $155,500,000 may be used, notwithstanding any other pro4 vision of law, to provide assistance, with the concurrence

5 of the Secretary of State, to the Government of Iraq to sup6 port the disarmament, demobilization, and reintegration of

7 militias and illegal armed groups.

8 SEC. 1315. REVISION OF UNITED STATES POLICY ON

9 IRAQ. (a) FINDINGS.—Congress makes the following find10 ings:

11 (1) Congress and the American people will con12 tinue to support and protect the members of the

13 United States Armed Forces who are serving or have

14 served bravely and honorably in Iraq.

15 (2) The circumstances referred to in the Author16 ization for Use of Military Force Against Iraq Reso17 lution of 2002 (Public Law 107–243) have changed

18 substantially.

19 (3) United States troops should not be policing

20 a civil war, and the current conflict in Iraq requires

21 principally a political solution.

22 (4) United States policy on Iraq must change to

23 emphasize the need for a political solution by Iraqi

24 leaders in order to maximize the chances of success

25 and to more effectively fight the war on terror.
†

25

HR 1591 EAS

1 (b) PROMPT COMMENCEMENT OF PHASED REDEPLOY2 MENT OF UNITED STATES FORCES FROM IRAQ.—

3 (1) TRANSITION OF MISSION.—The President

4 shall promptly transition the mission of United

5 States forces in Iraq to the limited purposes set forth

6 in paragraph (2).

7 (2) COMMENCEMENT OF PHASED REDEPLOYMENT

8 FROM IRAQ.—The President shall commence the

9 phased redeployment of United States forces from

10 Iraq not later than 120 days after the date of the en11 actment of this Act, with the goal of redeploying, by

12 March 31, 2008, all United States combat forces from

13 Iraq except for a limited number that are essential for

14 the following purposes:

15 (A) Protecting United States and coalition

16 personnel and infrastructure.

17 (B) Training and equipping Iraqi forces.

18 (C) Conducting targeted counter-terrorism

19 operations.

20 (3) COMPREHENSIVE STRATEGY.—Paragraph (2)

21 shall be implemented as part of a comprehensive dip22 lomatic, political, and economic strategy that includes

23 sustained engagement with Iraq’s neighbors and the

24 international community for the purpose of working

25 collectively to bring stability to Iraq.
†

26

HR 1591 EAS

1 (4) REPORTS REQUIRED.—Not later than 60

2 days after the date of the enactment of this Act, and

3 every 90 days thereafter, the President shall submit to

4 Congress a report on the progress made in

5 transitioning the mission of the United States forces

6 in Iraq and implementing the phased redeployment of

7 United States forces from Iraq as required under this

8 subsection, as well as a classified campaign plan for

9 Iraq, including strategic and operational benchmarks

10 and projected redeployment dates of United States

11 forces from Iraq.

12 (c) BENCHMARKS FOR THE GOVERNMENT OF IRAQ.—

13 (1) SENSE OF CONGRESS.—It is the sense of

14 Congress that—

15 (A) achieving success in Iraq is dependent

16 on the Government of Iraq meeting specific

17 benchmarks, as reflected in previous commit18 ments made by the Government of Iraq,

19 including—

20 (i) deploying trained and ready Iraqi

21 security forces in Baghdad;

22 (ii) strengthening the authority of

23 Iraqi commanders to make tactical and

24 operational decisions without political

25 intervention;
†

27

HR 1591 EAS

1 (iii) disarming militias and ensuring

2 that Iraqi security forces are accountable

3 only to the central government and loyal to

4 the constitution of Iraq;

5 (iv) enacting and implementing legis6 lation to ensure that the energy resources of

7 Iraq benefit all Iraqi citizens in an equi8 table manner;

9 (v) enacting and implementing legisla10 tion that equitably reforms the de11 Ba’athification process in Iraq;

12 (vi) ensuring a fair process for amend13 ing the constitution of Iraq so as to protect

14 minority rights; and

15 (vii) enacting and implementing rules

16 to equitably protect the rights of minority

17 political parties in the Iraqi Parliament;

18 and

19 (B) each benchmark set forth in subpara20 graph (A) should be completed expeditiously and

21 pursuant to a schedule established by the Govern22 ment of Iraq.

23 (2) REPORT.—Not later than 30 days after the

24 date of the enactment of this Act, and every 60 days

25 thereafter, the Commander, Multi-National Forces-
†

28

HR 1591 EAS

1 Iraq and the United States Ambassador to Iraq shall

2 jointly submit to Congress a report describing and as3 sessing in detail the current progress being made by

4 the Government of Iraq in meeting the benchmarks set

5 forth in paragraph (1)(A).

6 SEC. 1316. INDEPENDENT ASSESSMENT OF CAPABILI7 TIES OF THE IRAQI SECURITY FORCES. (a) FINDINGS.—

8 Congress makes the following findings:

9 (1) The responsibility for Iraq’s internal security

10 and halting sectarian violence must rest primarily

11 with the Government of Iraq, relying on the Iraqi Se12 curity Forces (ISF).

13 (2) In quarterly reports to Congress, and in tes14 timony before a number of congressional committees,

15 the Department of Defense reported progress towards

16 training and equipping Iraqi Security Forces; how17 ever, the subsequent performance of the Iraqi Security

18 Forces has been uneven and occasionally appeared in19 consistent with those reports.

20 (3) On November 15, 2005, President Bush said,

21 ‘‘The plan [is] that we will train Iraqi troops to be

22 able to take the fight to the enemy. And as I have con23 sistently said, as the Iraqis stand up, we will stand

24 down’’.
†

29

HR 1591 EAS

1 (4) On January 10, 2007, the President an2 nounced a new strategy, which consists of three basic

3 elements: diplomatic, economic, and military; the cen4 tral component of the military element being an aug5 mentation of the present level of the U.S. military

6 forces with more than 20,000 additional U.S. mili7 tary troops to Iraq to ‘‘work alongside Iraqi units

8 and be embedded in their formations. Our troops will

9 have a well-defined mission: to help Iraqis clear and

10 secure neighborhoods, to help them protect the local

11 population, and to help ensure that the Iraqi forces

12 left behind are capable of providing the security that

13 Baghdad needs’’.

14 (5) The President said on January 10, 2007,

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

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

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

18 that exists.

19 (6) The latest National Intelligence Estimate

20 (NIE) on Iraq, entitled ‘‘Prospects for Iraq’s Sta21 bility: A Challenging Road Ahead,’’ released in Janu22 ary 2007, found: ‘‘If strengthened Iraqi Security

23 Forces (ISF), more loyal to the government and sup24 ported by Coalition forces, are able to reduce levels of

25 violence and establish more effective security for
†

30

HR 1591 EAS

1 Iraq’s population, Iraqi leaders could have an oppor2 tunity to begin the process of political compromise

3 necessary for longer term stability, political progress,

4 and economic recovery’’.

5 (7) The NIE also stated that ‘‘[d]espite real im6 provements, the Iraqi Security Forces (ISF)—par7 ticularly the Iraqi police—will be hard pressed in the

8 next 12–18 months to execute significantly increased

9 security responsibilities’’.

10 (8) The current and prospective readiness of the

11 ISF is critical to (A) the long term stability of Iraq,

12 (B) the force protection of U.S. forces conducting com13 bined operations with the ISF; and (C) the scale of

14 U.S. forces deployed to Iraq.

15 (b) INDEPENDENT ASSESSMENT OF CAPABILITIES OF

16 IRAQI SECURITY FORCES.—

17 (1) IN GENERAL.—Of the amount appropriated

18 or otherwise made available for the Department of

19 Defense, $750,000 is provided to commission an inde20 pendent, private-sector entity, which operates as a

21 501(c)(3) with recognized credentials and expertise in

22 military affairs, to prepare an independent report as23 sessing the following:

24 (A) The readiness of the Iraqi Security

25 Forces (ISF) to assume responsibility for main-
†

31

HR 1591 EAS

1 taining the territorial integrity of Iraq, denying

2 international terrorists a safe haven, and bring3 ing greater security to Iraq’s 18 provinces in the

4 next 12–18 months, and bringing an end to sec5 tarian violence to achieve national reconcili6 ation.

7 (B) The training; equipping; command,

8 control and intelligence capabilities; and logis9 tics capacity of the ISF.

10 (C) The likelihood that, given the ISF’s

11 record of preparedness to date, following years of

12 training and equipping by US forces, the contin13 ued support of US troops will contribute to the

14 readiness of the ISF to fulfill the missions out15 lined in subparagraph (A).

16 (2) REPORT.—Not later than 120 days after pas17 sage of this Act, the designated private sector entity

18 shall provide an unclassified report, with a classified

19 annex, containing its findings, to the House and Sen20 ate Committees on Armed Services, Appropriations,

21 Foreign Relations, and Intelligence.

22 SEC. 1317. (a)(1) Notwithstanding any other provi23 sion of law, the Secretary of Veterans Affairs (referred to

24 in this section as the ‘‘Secretary’’) may convey to the State

25 of Texas, without consideration, all right, title, and interest
†

32

HR 1591 EAS

1 of the United States in and to the parcel of real property

2 comprising the location of the Marlin, Texas, Department

3 of Veterans Affairs Medical Center.

4 (2) The property conveyed under paragraph (1) shall

5 be used by the State of Texas for the purposes of a prison.

6 (b) In carrying out the conveyance under subsection

7 (a), the Secretary—

8 (1) shall not be required to comply with, and

9 shall not be held liable under, any Federal law (in10 cluding a regulation) relating to the environment or

11 historic preservation; but

12 (2) may, at the discretion of the Secretary, con13 duct environmental cleanup on the parcel to be con14 veyed, at a cost not to exceed $500,000, using

15 amounts made available for environmental cleanup of

16 sites under the jurisdiction of the Secretary.

17 SEC. 1318. REDEVELOPMENT OF INDUSTRIAL SECTOR

18 IN IRAQ. Of the amount appropriated or otherwise made

19 available by this chapter under the heading ‘‘IRAQ FREE20 DOM FUND’’, up to $100,000,000 may be obligated and ex21 pended for purposes of the Task Force to Improve Business

22 and Stability Operations in Iraq.

23 SEC. 1319. ADDITIONAL AMOUNT FOR PROCUREMENT,

24 MARINE CORPS, FOR ACCELERATION OF PROCUREMENT OF

25 ADDITIONAL 2,500 MINE RESISTANT AMBUSH PROTECTED
†

33

HR 1591 EAS

1 VEHICLES FOR THE ARMED FORCES.—(a) ADDITIONAL

2 AMOUNT.—The amount appropriated by this chapter under

3 the heading ‘‘PROCUREMENT, MARINE CORPS’’ is hereby in4 creased by $1,500,000,000, with the amount of the increase

5 to be available to the Marine Corps for the procurement

6 of an additional 2,500 Mine Resistant Ambush Protected

7 (MRAP) vehicles for the regular and reserve components of

8 the Armed Forces by not later than December 31, 2007.

9 (b) SUPPLEMENT NOT SUPPLANT.—The amount avail10 able under subsection (a) for the procurement of vehicles

11 described in that subsection is in addition to any other

12 amounts available under this chapter for that purpose.

13 CHAPTER 4

14 DEPARTMENT OF ENERGY

15 ATOMIC ENERGY DEFENSE ACTIVITIES

16 NATIONAL NUCLEAR SECURITY ADMINISTRATION

17 DEFENSE NUCLEAR NONPROLIFERATION

18 For an additional amount for ‘‘Defense Nuclear Non19 proliferation’’, $63,000,000.
†

34

HR 1591 EAS

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
†

35

HR 1591 EAS

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
†

36

HR 1591 EAS

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 MANAGEMENT PERFORMANCE 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.
†

37

HR 1591 EAS

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
†

38

HR 1591 EAS

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
†

39

HR 1591 EAS

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 AMOUNT FOR 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 obli-
†

40

HR 1591 EAS

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.
†

41

HR 1591 EAS

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
†

42

HR 1591 EAS

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.
†

43

HR 1591 EAS

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
†

44

HR 1591 EAS

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.
†

45

HR 1591 EAS

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
†

46

HR 1591 EAS

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
†

47

HR 1591 EAS

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
†

48

HR 1591 EAS

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
†

49

HR 1591 EAS

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.
†

50

HR 1591 EAS

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
†

51

HR 1591 EAS

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 Mon-
†

52

HR 1591 EAS

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
†

53

HR 1591 EAS

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
†

54

HR 1591 EAS

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.
†

55

HR 1591 EAS

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

26 other provision of law, fifty percent of the funds appro-
†

56

HR 1591 EAS

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
†

57

HR 1591 EAS

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’’:
†

58

HR 1591 EAS

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’’.
†

59

HR 1591 EAS

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
†

60

HR 1591 EAS

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.
†

61

HR 1591 EAS

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.
†

62

HR 1591 EAS

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
†

63

HR 1591 EAS

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, dis-
†

64

HR 1591 EAS

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
†

65

HR 1591 EAS

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.
†

66

HR 1591 EAS

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.
†

67

HR 1591 EAS

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
†

68

HR 1591 EAS

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—
†

69

HR 1591 EAS

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
†

70

HR 1591 EAS

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.
†

71

HR 1591 EAS

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
†

72

HR 1591 EAS

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

24 on the date of enactment of the U.S. Troop Readiness, Vet-
†

73

HR 1591 EAS

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
†

74

HR 1591 EAS

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

25 concern under section 7(b)(3) of the Small Busi-
†

75

HR 1591 EAS

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
†

76

HR 1591 EAS

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—
†

77

HR 1591 EAS

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
†

78

HR 1591 EAS

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
†

79

HR 1591 EAS

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.
†

80

HR 1591 EAS

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, re-
†

81

HR 1591 EAS

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.
†

82

HR 1591 EAS

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
†

83

HR 1591 EAS

1 OF THE SECURE RURAL SCHOOLS AND COMMUNITY SELF2 DETERMINATION ACT OF 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—
†

84

HR 1591 EAS

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—
†

85

HR 1591 EAS

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
†

86

HR 1591 EAS

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—
†

87

HR 1591 EAS

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-PERCENT ADJUSTED 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—
†

88

HR 1591 EAS

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-PERCENT BASE 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
†

89

HR 1591 EAS

1 in all eligible States during the eligibility

2 period.

3 ‘‘(10) 50-PERCENT PAYMENT.—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.
†

90

HR 1591 EAS

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-PERCENT PAYMENT.—The term ‘25-per25 cent payment’ means the payment to States required
†

91

HR 1591 EAS

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.
†

92

HR 1591 EAS

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
†

93

HR 1591 EAS

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.
†

94

HR 1591 EAS

1 ‘‘(3) SOURCE OF PAYMENT AMOUNTS.—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).
†

95

HR 1591 EAS

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-PERCENT PAYMENT OR 50-PERCENT PAYMENT,

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.
†

96

HR 1591 EAS

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
†

97

HR 1591 EAS

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

25 provided in subparagraph (B), if the eligi-
†

98

HR 1591 EAS

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—
†

99

HR 1591 EAS

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

25 in effect on September 29, 2006) for the eli-
†

100

HR 1591 EAS

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
†

101

HR 1591 EAS

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 AMOUNT IN 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
†

102

HR 1591 EAS

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.
†

103

HR 1591 EAS

1 ‘‘(2) PROJECT FUNDS.—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 MANAGEMENT PLAN.—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).
†

104

HR 1591 EAS

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.
†

105

HR 1591 EAS

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) JOINT PROJECTS.—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.
†

106

HR 1591 EAS

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.
†

107

HR 1591 EAS

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.
†

108

HR 1591 EAS

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) REQUEST FOR PAYMENT BY 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) CONDUCT OF 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) EFFECT OF 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.
†

109

HR 1591 EAS

1 ‘‘(B) EFFECT OF 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
†

110

HR 1591 EAS

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 CONDUCT OF 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;
†

111

HR 1591 EAS

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 PILOT PROGRAM.—

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
†

112

HR 1591 EAS

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 PILOT PROGRAM.—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 AMOUNT OF ASSIST23 ANCE.—The total amount obligated under

24 this subparagraph may not exceed
†

113

HR 1591 EAS

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
†

114

HR 1591 EAS

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.—
†

115

HR 1591 EAS

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 MANAGEMENT ADVI15 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;
†

116

HR 1591 EAS

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.
†

117

HR 1591 EAS

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—
†

118

HR 1591 EAS

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
†

119

HR 1591 EAS

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).
†

120

HR 1591 EAS

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
†

121

HR 1591 EAS

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.
†

122

HR 1591 EAS

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
†

123

HR 1591 EAS

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).
†

124

HR 1591 EAS

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) EFFECT OF 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
†

125

HR 1591 EAS

1 available for use as part of the project submissions in the

2 next fiscal year.

3 ‘‘(d) EFFECT OF 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
†

126

HR 1591 EAS

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);
†

127

HR 1591 EAS

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.
†

128

HR 1591 EAS

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).
†

129

HR 1591 EAS

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) DEPOSIT OF 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) ACT OF MAY 23, 1908.—The sixth paragraph

14 under the heading ‘‘FOREST SERVICE’’ 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
†

130

HR 1591 EAS

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
†

131

HR 1591 EAS

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

7 amended—

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
†

132

HR 1591 EAS

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’’.
†

133

HR 1591 EAS

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 informa-
†

134

HR 1591 EAS

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.—
†

135

HR 1591 EAS

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.
†

136

HR 1591 EAS

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
†

137

HR 1591 EAS

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
†

138

HR 1591 EAS

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
†

139

HR 1591 EAS

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
†

140

HR 1591 EAS

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
†

141

HR 1591 EAS

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
†

142

HR 1591 EAS

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
†

143

HR 1591 EAS

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 im-
†

144

HR 1591 EAS

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.
†

145

HR 1591 EAS

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:
†

146

HR 1591 EAS

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
†

147

HR 1591 EAS

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

14 amended—

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
†

148

HR 1591 EAS

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.
†

149

HR 1591 EAS

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
†

150

HR 1591 EAS

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
†

151

HR 1591 EAS

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:
†

152

HR 1591 EAS

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
†

153

HR 1591 EAS

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.
†

154

HR 1591 EAS

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
†

155

HR 1591 EAS

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
†

156

HR 1591 EAS

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,
†

157

HR 1591 EAS

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,
†

158

HR 1591 EAS

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 ade-
†

159

HR 1591 EAS

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.
†

160

HR 1591 EAS

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 de-
†

161

HR 1591 EAS

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
†

162

HR 1591 EAS

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’’.
†

163

HR 1591 EAS

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.
†

164

HR 1591 EAS

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 Admin-
†

165

HR 1591 EAS

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—
†

166

HR 1591 EAS

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, train-
†

167

HR 1591 EAS

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,
†

168

HR 1591 EAS

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 En-
†

169

HR 1591 EAS

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.
†

170

HR 1591 EAS

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
†

171

HR 1591 EAS

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

24 modification of assets under, or in support of, the In-
†

172

HR 1591 EAS

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 PRODUCT AND 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:
†

173

HR 1591 EAS

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.
†

174

HR 1591 EAS

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.
†

175

HR 1591 EAS

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) REPORT ON 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 REPORT ON

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
†

176

HR 1591 EAS

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
†

177

HR 1591 EAS

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.
†

178

HR 1591 EAS

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–
†

179

HR 1591 EAS

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
†

180

HR 1591 EAS

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.
†

181

HR 1591 EAS

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
†

182

HR 1591 EAS

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 ‘‘De-
†

183

HR 1591 EAS

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.
†

184

HR 1591 EAS

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
†

185

HR 1591 EAS

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.
†

186

HR 1591 EAS

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’’.
†

187

HR 1591 EAS

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
†

188

HR 1591 EAS

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–
†

189

HR 1591 EAS

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
†

190

HR 1591 EAS

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
†

191

HR 1591 EAS

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
†

192

HR 1591 EAS

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

24 (excluding livestock) for which the producers on a

25 farm are eligible to obtain a policy or plan of insur-
†

193

HR 1591 EAS

1 ance under the Federal Crop Insurance Act (7 U.S.C.

2 1501 et seq.).

3 (7) LIVESTOCK.—The term ‘‘livestock’’

4 includes—

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.
†

194

HR 1591 EAS

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
†

195

HR 1591 EAS

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

19 multiplying—

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
†

196

HR 1591 EAS

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).
†

197

HR 1591 EAS

1 (3) PAYMENT RATE.—

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
†

198

HR 1591 EAS

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

24 percent of the value that all affected produc-
†

199

HR 1591 EAS

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
†

200

HR 1591 EAS

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
†

201

HR 1591 EAS

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
†

202

HR 1591 EAS

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
†

203

HR 1591 EAS

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
†

204

HR 1591 EAS

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) PAYMENT RATES.—Indemnity payments to a

24 producer on a farm under paragraph (1) shall be

25 made at a rate of not less than 30 percent of the mar-
†

205

HR 1591 EAS

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 REPLACEMENT AND 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
†

206

HR 1591 EAS

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
†

207

HR 1591 EAS

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

12 establish—

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
†

208

HR 1591 EAS

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
†

209

HR 1591 EAS

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.—
†

210

HR 1591 EAS

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
†

211

HR 1591 EAS

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 ASSESSMENT FOR 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
†

212

HR 1591 EAS

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

23 $100,000,000 of funds of the Commodity Credit Cor24 poration to make grants to State departments of agri-
†

213

HR 1591 EAS

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

25 suffered material economic losses during the applica-
†

214

HR 1591 EAS

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
†

215

HR 1591 EAS

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 MIGRANT AND 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
†

216

HR 1591 EAS

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) INSUFFICIENT FUNDING.—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
†

217

HR 1591 EAS

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

25 repair broken irrigation pipelines and damaged and col-
†

218

HR 1591 EAS

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’’.
†

219

HR 1591 EAS

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
†

220

HR 1591 EAS

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.
†

221

HR 1591 EAS

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:
†

222

HR 1591 EAS

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
†

223

HR 1591 EAS

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) AMENDMENT OF 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.
†

224

HR 1591 EAS

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.—
†

225

HR 1591 EAS

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:
†

226

HR 1591 EAS

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

25 owner. Rules similar to the rules under para-
†

227

HR 1591 EAS

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’’.
†

228

HR 1591 EAS

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.’’.
†

229

HR 1591 EAS

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
†

230

HR 1591 EAS

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
†

231

HR 1591 EAS

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’’.
†

232

HR 1591 EAS

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—
†

233

HR 1591 EAS

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.—
†

234

HR 1591 EAS

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 ACCOUNT FOR DISABLED VETERANS.—Paragraph (3)

25 of section 51(b) is amended—
†

235

HR 1591 EAS

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

25 such organization, but only with respect to remunera-
†

236

HR 1591 EAS

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

24 subtitle—
†

237

HR 1591 EAS

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
†

238

HR 1591 EAS

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),
†

239

HR 1591 EAS

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:
†

240

HR 1591 EAS

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
†

241

HR 1591 EAS

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) AMOUNT OF 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—
†

242

HR 1591 EAS

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) INDEPENDENT FINANCIAL 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.
†

243

HR 1591 EAS

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.
†

244

HR 1591 EAS

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—
†

245

HR 1591 EAS

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.
†

246

HR 1591 EAS

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
†

247

HR 1591 EAS

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)’’.
†

248

HR 1591 EAS

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
†

249

HR 1591 EAS

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.
†

250

HR 1591 EAS

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).
†

251

HR 1591 EAS

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

21 thereof) placed in service for purposes of op-
†

252

HR 1591 EAS

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—
†

253

HR 1591 EAS

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.—
†

254

HR 1591 EAS

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

25 section 1504(a)(2), the term ‘passive invest-
†

255

HR 1591 EAS

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.’’.
†

256

HR 1591 EAS

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
†

257

HR 1591 EAS

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.’’.
†

258

HR 1591 EAS

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
†

259

HR 1591 EAS

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
†

260

HR 1591 EAS

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

25 beginning before January 1, 1983, for which such corpora-
†

261

HR 1591 EAS

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.
†

262

HR 1591 EAS

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.—
†

263

HR 1591 EAS

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—
†

264

HR 1591 EAS

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.
†

265

HR 1591 EAS

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).’’.
†

266

HR 1591 EAS

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.’’.
†

267

HR 1591 EAS

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
†

268

HR 1591 EAS

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
†

269

HR 1591 EAS

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.—
†

270

HR 1591 EAS

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) REQUIREMENT OF 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) SUIT OR AGREEMENT DESCRIBED.—
†

271

HR 1591 EAS

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
†

272

HR 1591 EAS

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,
†

273

HR 1591 EAS

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

22 subtitle—

23 ‘‘(1) MARK TO MARKET.—Except as provided in

24 subsections (d) and (f), all property of a covered expa-
†

274

HR 1591 EAS

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
†

275

HR 1591 EAS

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—
†

276

HR 1591 EAS

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

11 individual—

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

25 which this section would apply but for the elec-
†

277

HR 1591 EAS

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
†

278

HR 1591 EAS

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
†

279

HR 1591 EAS

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

24 section—
†

280

HR 1591 EAS

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.—
†

281

HR 1591 EAS

1 ‘‘(1) EXEMPT PROPERTY.—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
†

282

HR 1591 EAS

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) TREATMENT OF SUBSEQUENT DIS16 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—
†

283

HR 1591 EAS

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
†

284

HR 1591 EAS

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) RELINQUISHMENT OF 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

24 (1), (2), (3), or (4) of section 349(a) of the Im-
†

285

HR 1591 EAS

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,
†

286

HR 1591 EAS

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
†

287

HR 1591 EAS

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) AMOUNT OF 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
†

288

HR 1591 EAS

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
†

289

HR 1591 EAS

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
†

290

HR 1591 EAS

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

24 of such tax and any other beneficiary of the trust

25 shall be entitled to recover from the covered expa-
†

291

HR 1591 EAS

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.
†

292

HR 1591 EAS

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 EST IN 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.
†

293

HR 1591 EAS

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.—
†

294

HR 1591 EAS

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

25 (including any interest, additional amount, ad-
†

295

HR 1591 EAS

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
†

296

HR 1591 EAS

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
†

297

HR 1591 EAS

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.’’.
†

298

HR 1591 EAS

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
†

299

HR 1591 EAS

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)’’.
†

300

HR 1591 EAS

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
†

301

HR 1591 EAS

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.
†

302

HR 1591 EAS

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

7 amended—

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
†

303

HR 1591 EAS

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

25 the employer maintaining the non-
†

304

HR 1591 EAS

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.
†

305

HR 1591 EAS

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
†

306

HR 1591 EAS

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

25 not previously included in gross income, includ-
†

307

HR 1591 EAS

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—
†

308

HR 1591 EAS

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
†

309

HR 1591 EAS

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 PAYMENT OR OVERPAYMENT OF 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
†

310

HR 1591 EAS

1 (2) by adding at the end the following new sub2 section:

3 ‘‘(b) INCREASE IN MONETARY LIMITATION FOR UN4 DERPAYMENT OR OVERPAYMENT OF 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

23 taxpayer—

24 (A) the determination as to whether any in25 terest or applicable penalty is to be imposed with
†

311

HR 1591 EAS

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
†

312

HR 1591 EAS

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.
†

313

HR 1591 EAS

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—
†

314

HR 1591 EAS

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
†

315

HR 1591 EAS

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.
†

316

HR 1591 EAS

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’’.
†

317

HR 1591 EAS

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,
†

318

HR 1591 EAS

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) REQUEST FOR 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
†

319

HR 1591 EAS

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.—
†

320

HR 1591 EAS

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.
†

321

HR 1591 EAS

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
†

322

HR 1591 EAS

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

25 section 152(f)(5) (without regard to sub-
†

323

HR 1591 EAS

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

10 amended—

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’’.
†

324

HR 1591 EAS

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
†

325

HR 1591 EAS

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
†

326

HR 1591 EAS

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:
†

327

HR 1591 EAS

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
†

328

HR 1591 EAS

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.’’.
†

329

HR 1591 EAS

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.
†

330

HR 1591 EAS

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.—
†

331

HR 1591 EAS

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
†

332

HR 1591 EAS

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

25 preparer’’ each place it appears in sub-
†

333

HR 1591 EAS

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—
†

334

HR 1591 EAS

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’’.
†

335

HR 1591 EAS

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
†

336

HR 1591 EAS

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 MENT OF 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.—
†

337

HR 1591 EAS

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

24 shown that there is reasonable cause for the under-
†

338

HR 1591 EAS

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
†

339

HR 1591 EAS

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.
†

340

HR 1591 EAS

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
†

341

HR 1591 EAS

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
†

342

HR 1591 EAS

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.
†

343

HR 1591 EAS

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
†

344

HR 1591 EAS

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—
†

345

HR 1591 EAS

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.’’.
†

346

HR 1591 EAS

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—
†

347

HR 1591 EAS

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) AMOUNT OF 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
†

348

HR 1591 EAS

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—
†

349

HR 1591 EAS

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
†

350

HR 1591 EAS

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
†

351

HR 1591 EAS

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)—
†

352

HR 1591 EAS

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

25 using sufficiently plain language likely to be under-
†

353

HR 1591 EAS

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
†

354

HR 1591 EAS

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) AMOUNT AND 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;
†

355

HR 1591 EAS

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.—
†

356

HR 1591 EAS

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—
†

357

HR 1591 EAS

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 sub-
†

358

HR 1591 EAS

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

24 shall by regulation provide for an appeals proc-
†

359

HR 1591 EAS

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).
†

360

HR 1591 EAS

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.
†

361

HR 1591 EAS

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).
†

362

HR 1591 EAS

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
†

363

HR 1591 EAS

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
†

364

HR 1591 EAS

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
†

365

HR 1591 EAS

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.
†

366

HR 1591 EAS

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
†

367

HR 1591 EAS

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).’’.
†

368

HR 1591 EAS

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
†

369

HR 1591 EAS

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—
†

370

HR 1591 EAS

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.
†

371

HR 1591 EAS

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
†

372

HR 1591 EAS

1 contract, grant, or cooperative agreement

2 for a period of 7 years.

3 ‘‘(ii) PLACEMENT ON 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
†

373

HR 1591 EAS

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

25 Secretary of Homeland Security, in co-
†

374

HR 1591 EAS

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

25 waiver or limitation described in sub-
†

375

HR 1591 EAS

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.’’.
†

376

HR 1591 EAS

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

26 dollar amount) of the accounts covered by quali-
†

377

HR 1591 EAS

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
†

378

HR 1591 EAS

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 EMPLOYMENT OF 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.
†

379

HR 1591 EAS

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) REPORT BY 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
†

380

HR 1591 EAS

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’’.

Attest:

Secretary.
110TH CONGRESS

1ST SESSION H. R. 1591

AMENDMENT