103 
once annually, conducted by multiple sources (including, 
but not limited to, principals and master teachers), and 
evaluated against research-based rubrics that use plan-
ning, instructional, and learning environment standards to 
measure teacher performance, except that the require-
ments of this proviso shall not apply to a State that has 
enacted a State law in 2006 authorizing performance pay 
for teachers. 
PROGRAMS TO RESTART SCHOOL OPERATIONS 
Funds made available under section 102 of the Hur-
ricane Education Recovery Act (title IV of division B of 
Public Law 109–148) may be used by the States of Lou-
isiana, Mississippi, Alabama, and Texas, in addition to the 
uses of funds described in section 102(e), for the following 
costs: (1) recruiting, retaining, and compensating new and 
current teachers, school principals, assistant principals, 
principal resident directors, assistant directors, and other 
educators for school-based positions in public elementary 
and secondary schools impacted by Hurricane Katrina or 
Hurricane Rita, including through such mechanisms as 
paying salary premiums, performance bonuses, housing 
subsidies, signing bonuses, and relocation costs and pro-
viding loan forgiveness; (2) activities to build the capacity, 
knowledge, and skills of teachers and school-based school 
principals, assistant principals, principal resident direc-
104 
tors, assistant directors, and other educators in such pub-
lic elementary and secondary schools to provide an effec-
tive education, including the design, adaptation, and im-
plementation of high-quality formative assessments; (3) 
the establishment of partnerships with nonprofit entities 
with a demonstrated track record in recruiting and retain-
ing outstanding teachers and school-based school prin-
cipals, assistant principals, principal resident directors, 
and assistant directors; and (4) paid release time for 
teachers and principals to identify and replicate successful 
practices from the fastest-improving and highest-per-
forming schools. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 3701. Section 105(b) of title IV of division B 
of Public Law 109–148 is amended by adding at the end 
the following new sentence: ‘‘With respect to the program 
authorized by section 102 of this Act, the waiver authority 
in subsection (a) of this section shall be available until 
the end of fiscal year 2008.’’. 
SEC. 3702. Notwithstanding section 2002(c) of the 
Social Security Act (42 U.S.C. 1397a(c)), funds made 
available under the heading ‘‘Social Services Block Grant’’ 
in division B of Public Law 109–148 shall be available 
for expenditure by the States through the end of fiscal 
year 2009.
105 
SEC. 3703. (a) In the event that Louisiana, Mis-
sissippi, Alabama, or Texas fails to meet its match re-
quirement with funds appropriated in fiscal years 2006 
or 2007, for fiscal years 2008 and 2009, the Secretary 
of Health and Human Services may waive the application 
of section 2617(d)(4) of the Public Health Service Act for 
Louisiana, Mississippi, Alabama, and Texas. 
(b) The Secretary may not exercise the waiver au-
thority available under subsection (a) to allow a grantee 
to provide less than a 25 percent matching grant. 
(c) For grant years beginning in 2008, Louisiana, 
Mississippi, Alabama, and Texas and any eligible metro-
politan area in Louisiana, Mississippi, Alabama, and 
Texas shall comply with each of the applicable require-
ments under title XXVI of the Public Health Service Act 
(42 U.S.C. 300ff–11 et seq.). 
CHAPTER 8 
DEPARTMENT OF TRANSPORTATION 
FEDERAL HIGHWAY ADMINISTRATION 
FEDERAL-AID HIGHWAYS 
EMERGENCY RELIEF PROGRAM 
(INCLUDING RESCISSION OF FUNDS) 
For an additional amount for the Emergency Relief 
Program as authorized under section 125 of title 23, 
United States Code, $682,942,000, to remain available 
until expended: Provided, That section 125(d)(1) of title
106 
23, United States Code, shall not apply to emergency re-
lief projects that respond to damage caused by the 2005– 
2006 winter storms in the State of California: Provided 
further, That of the unobligated balances of funds appor-
tioned to each State under chapter 1 of title 23, United 
States Code, $682,942,000 are rescinded: Provided fur-
ther, That such rescission shall not apply to the funds dis-
tributed in accordance with sections 130(f) and 104(b)(5) 
of title 23, United States Code; sections 133(d)(1) and 
163 of such title, as in effect on the day before the date 
of enactment of Public Law 109–59; and the first sentence 
of section 133(d)(3)(A) of such title. 
FEDERAL TRANSIT ADMINISTRATION 
FORMULA GRANTS 
For an additional amount to be allocated by the Sec-
retary to recipients of assistance under chapter 53 of title 
49, United States Code, directly affected by Hurricanes 
Katrina and Rita, $35,000,000, for the operating and cap-
ital costs of transit services, to remain available until ex-
pended: Provided, That the Federal share for any project 
funded from this amount shall be 100 percent.
107 
DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the Office of Inspector 
General, for the necessary costs related to the con-
sequences of Hurricanes Katrina and Rita, $7,000,000, 
to remain available until expended. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 3801. The third proviso under the heading ‘‘De-
partment of Housing and Urban Development—Public 
and Indian Housing—Tenant-Based Rental Assistance’’ 
in chapter 9 of title I of division B of Public Law 109– 
148 (119 Stat. 2779) is amended by striking ‘‘for up to 
18 months’’ and inserting ‘‘until December 31, 2007’’. 
SEC. 3802. Section 21033 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
adding after the third proviso: ‘‘: Provided further, That 
notwithstanding the previous proviso, except for applying 
the 2007 Annual Adjustment Factor and making any 
other specified adjustments, public housing agencies speci-
fied in category 1 below shall receive funding for calendar 
year 2007 based on the higher of the amounts the agencies 
would receive under the previous proviso or the amounts 
the agencies received in calendar year 2006, and public
108 
housing agencies specified in categories 2 and 3 below 
shall receive funding for calendar year 2007 equal to the 
amounts the agencies received in calendar year 2006, ex-
cept that public housing agencies specified in categories 
1 and 2 below shall receive funding under this proviso only 
if, and to the extent that, any such public housing agency 
submits a plan, approved by the Secretary, that dem-
onstrates that the agency can effectively use within 12 
months the funding that the agency would receive under 
this proviso that is in addition to the funding that the 
agency would receive under the previous proviso: (1) public 
housing agencies that are eligible for assistance under sec-
tion 901 in Public Law 109–148 (119 Stat. 2781) or are 
located in the same counties as those eligible under section 
901 and operate voucher programs under section 8(o) of 
the United States Housing Act of 1937 but do not operate 
public housing under section 9 of such Act, and any public 
housing agency that otherwise qualifies under this cat-
egory must demonstrate that they have experienced a loss 
of rental housing stock as a result of the 2005 hurricanes; 
(2) public housing agencies that would receive less funding 
under the previous proviso than they would receive under 
this proviso and that have been placed in receivership or 
the Secretary has declared to be in breach of an Annual 
Contributions Contract by June 1, 2007; and (3) public
109 
housing agencies that spent more in calendar year 2006 
than the total of the amounts of any such public housing 
agency’s allocation amount for calendar year 2006 and the 
amount of any such public housing agency’s available 
housing assistance payments undesignated funds balance 
from calendar year 2005 and the amount of any such pub-
lic housing agency’s available administrative fees undesig-
nated funds balance through calendar year 2006’’. 
SEC. 3803. Section 901 of Public Law 109–148 is 
amended by deleting ‘‘calendar year 2006’’ and inserting 
‘‘calendar years 2006 and 2007’’. 
TITLE IV—OTHER EMERGENCY 
APPROPRIATIONS 
CHAPTER 1 
DEPARTMENT OF DEFENSE—CIVIL 
DEPARTMENT OF THE ARMY 
CORPS OF ENGINEERS—CIVIL 
INVESTIGATIONS 
For an additional amount for ‘‘Investigations’’ for 
flood damage reduction studies to address flooding associ-
ated with disasters covered by Presidential Disaster Dec-
laration FEMA–1692–DR, $8,165,000, to remain avail-
able until expended. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’ for 
flood damage reduction activities associated with disasters
110 
covered by Presidential Disaster Declaration FEMA– 
1692–DR, $500,000 to remain available until expended. 
OPERATION AND MAINTENANCE 
For an additional amount for ‘‘Operation and Main-
tenance’’ to dredge navigation channels related to the con-
sequences of hurricanes of the 2005 season, $3,000,000, 
to remain available until expended. 
FLOOD CONTROL AND COASTAL EMERGENCIES 
For an additional amount for ‘‘Flood Control and 
Coastal Emergencies’’, as authorized by section 5 of the 
Act of August 18, 1941 (33 U.S.C. 701n), to support 
emergency operations, repairs and other activities in re-
sponse to flood, drought and earthquake emergencies as 
authorized by law, $153,300,000, to remain available until 
expended: Provided, That the Chief of Engineers, acting 
through the Assistant Secretary of the Army for Civil 
Works, shall provide a monthly report to the House and 
Senate Committees on Appropriations detailing the alloca-
tion and obligation of these funds, beginning not later 
than 60 days after enactment of this division. 
DEPARTMENT OF THE INTERIOR 
BUREAU OF RECLAMATION 
WATER AND RELATED RESOURCES 
For an additional amount for ‘‘Water and Related 
Resources’’, $18,000,000, to remain available until ex-
pended for drought assistance: Provided, That drought as-
111 
sistance may be provided under the Reclamation States 
Drought Emergency Act or other applicable Reclamation 
authorities to assist drought plagued areas of the West. 
CHAPTER 2 
DEPARTMENT OF THE INTERIOR 
UNITED STATES FISH AND WILDLIFE SERVICE 
RESOURCE MANAGEMENT 
For an additional amount for ‘‘Resource Manage-
ment’’ for the detection of highly pathogenic avian influ-
enza in wild birds, including the investigation of morbidity 
and mortality events, targeted surveillance in live wild 
birds, and targeted surveillance in hunter-taken birds, 
$7,398,000, to remain available until September 30, 2008. 
NATIONAL PARK SERVICE 
OPERATION OF THE NATIONAL PARK SYSTEM 
For an additional amount for ‘‘Operation of the Na-
tional Park System’’ for the detection of highly pathogenic 
avian influenza in wild birds, including the investigation 
of morbidity and mortality events, $525,000, to remain 
available until September 30, 2008. 
UNITED STATES GEOLOGICAL SURVEY 
SURVEYS, INVESTIGATIONS, AND RESEARCH 
For an additional amount for ‘‘Surveys, Investiga-
tions, and Research’’ for the detection of highly patho-
genic avian influenza in wild birds, including the investiga-
112 
tion of morbidity and mortality events, targeted surveil-
lance in live wild birds, and targeted surveillance in 
hunter-taken birds, $5,270,000, to remain available until 
September 30, 2008. 
DEPARTMENT OF AGRICULTURE 
FOREST SERVICE 
NATIONAL FOREST SYSTEM 
For an additional amount for ‘‘National Forest Sys-
tem’’ for the implementation of a nationwide initiative to 
increase protection of national forest lands from drug-traf-
ficking organizations, including funding for additional law 
enforcement personnel, training, equipment and coopera-
tive agreements, $12,000,000, to remain available until 
expended. 
CHAPTER 3 
DEPARTMENT OF HEALTH AND HUMAN 
SERVICES 
CENTERS FOR DISEASE CONTROL AND PREVENTION 
DISEASE CONTROL, RESEARCH AND TRAINING 
For an additional amount for ‘‘Department of Health 
and Human Services, Centers for Disease Control and 
Prevention, Disease Control, Research and Training’’, to 
carry out section 501 of the Federal Mine Safety and 
Health Act of 1977 and section 6 of the Mine Improve-
ment and New Emergency Response Act of 2006,
113 
$13,000,000 for research to develop mine safety tech-
nology, including necessary repairs and improvements to 
leased laboratories: Provided, That progress reports on 
technology development shall be submitted to the House 
and Senate Committees on Appropriations and the Com-
mittee on Health, Education, Labor and Pensions of the 
Senate and the Committee on Education and Labor of the 
House of Representatives on a quarterly basis: Provided 
further, That the amount provided under this heading 
shall remain available until September 30, 2008. 
For an additional amount for ‘‘Department of Health 
and Human Services, Centers for Disease Control and 
Prevention, Disease Control, Research and Training’’, to 
carry out activities under section 5011(b) of the Emer-
gency Supplemental Appropriations Act to Address Hurri-
canes in the Gulf of Mexico and Pandemic Influenza, 2006 
(Public Law 109–148), $50,000,000, to remain available 
until expended. 
ADMINISTRATION FOR CHILDREN AND FAMILIES 
LOW-INCOME HOME ENERGY ASSISTANCE 
For an additional amount for ‘‘Low-Income Home 
Energy Assistance’’ under section 2604(a) through (d) of 
the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8623(a) through (d)), $200,000,000.
114 
For an additional amount for ‘‘Low-Income Home 
Energy Assistance’’ under section 2604(e) of the Low-In-
come Home Energy Assistance Act of 1981 (42 U.S.C. 
8623(e)), $200,000,000. 
OFFICE OF THE SECRETARY 
PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY 
FUND 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Public Health and So-
cial Services Emergency Fund’’ to prepare for and re-
spond to an influenza pandemic, $625,000,000, to remain 
available until expended: Provided, That this amount shall 
be for activities including the development and purchase 
of 
vaccine, 
antivirals, 
necessary 
medical 
supplies, 
diagnostics, and other surveillance tools: Provided further, 
That products purchased with these funds may, at the dis-
cretion of the Secretary of Health and Human Services, 
be deposited in the Strategic National Stockpile: Provided 
further, That notwithstanding section 496(b) of the Public 
Health Service Act, funds may be used for the construc-
tion or renovation of privately owned facilities for the pro-
duction of pandemic vaccine and other biologicals, where 
the Secretary finds such a contract necessary to secure 
sufficient supplies of such vaccines or biologicals: Provided 
further, That funds appropriated herein may be trans-
ferred to other appropriation accounts of the Department
115 
of Health and Human Services, as determined by the Sec-
retary to be appropriate, to be used for the purposes speci-
fied in this sentence. 
COVERED COUNTERMEASURE PROCESS FUND 
For carrying out section 319F–4 of the Public Health 
Service Act (42 U.S.C. 247d–6e) to compensate individ-
uals for injuries caused by H5N1 vaccine, in accordance 
with the declaration regarding avian influenza viruses 
issued by the Secretary of Health and Human Services 
on January 26, 2007, pursuant to section 319F–3(b) of 
such Act (42 U.S.C. 247d–6d(b)), $25,000,000, to remain 
available until expended. 
GENERAL PROVISIONS—THIS CHAPTER 
(INCLUDING RESCISSIONS) 
SEC. 4301. (a). From unexpended balances available 
for the Training and Employment Services account under 
the Department of Labor, the following amounts are here-
by rescinded— 
(1) $3,589,000 transferred pursuant to the 
2001 Emergency Supplemental Appropriations Act 
for Recovery from and Response to Terrorist At-
tacks on the United States (Public Law 107–38); 
(2) $834,000 transferred pursuant to the 
Emergency Supplemental Appropriations Act of 
1994 (Public Law 103–211); and
116 
(3) $71,000 for the Consortium for Worker 
Education pursuant to the Emergency Supplemental 
Act, 2002 (Public Law 107–117). 
(b) From unexpended balances available for the State 
Unemployment Insurance and Employment Service Oper-
ations account under the Department of Labor pursuant 
to the Emergency Supplemental Act, 2002 (Public Law 
107–117), $4,100,000 are hereby rescinded. 
SEC. 4302. (a) For an additional amount under ‘‘De-
partment of Education, Safe Schools and Citizenship Edu-
cation’’, $8,594,000 shall be available for Safe and Drug- 
Free Schools National Programs for competitive grants to 
local educational agencies to address youth violence and 
related issues. 
(b) The competition under subsection (a) shall be lim-
ited to local educational agencies that operate schools cur-
rently identified as persistently dangerous under section 
9532 of the Elementary and Secondary Education Act of 
1965.
117 
CHAPTER 4 
LEGISLATIVE BRANCH 
CAPITOL POLICE 
GENERAL EXPENSES 
For an additional amount for ‘‘Capitol Police, Gen-
eral Expenses’’, $15,000,000 for a radio modernization 
program, to remain available until expended. 
ARCHITECT OF THE CAPITOL 
CAPITOL POWER PLANT 
For an additional amount for ‘‘Capitol Power Plant’’, 
$50,000,000, for utility tunnel repairs and asbestos abate-
ment, to remain available until September 30, 2011: Pro-
vided, That the Architect of the Capitol may not obligate 
any of the funds appropriated under this heading without 
approval of an obligation plan by the Committees on Ap-
propriations of the Senate and House of Representatives. 
CHAPTER 5 
DEPARTMENT OF VETERANS AFFAIRS 
VETERANS HEALTH ADMINISTRATION 
MEDICAL SERVICES 
For an additional amount for ‘‘Medical Services’’, 
$466,778,000, to remain available until expended, of 
which $30,000,000 shall be for the establishment of at 
least one new Level I comprehensive polytrauma center; 
$9,440,000 shall be for the establishment of polytrauma
118 
residential 
transitional 
rehabilitation 
programs; 
$10,000,000 shall be for additional transition case-
workers; $20,000,000 shall be for substance abuse treat-
ment programs; $20,000,000 shall be for readjustment 
counseling; $10,000,000 shall be for blind rehabilitation 
services; $100,000,000 shall be for enhancements to men-
tal health services; $8,000,000 shall be for polytrauma 
support clinic teams; $5,356,000 shall be for additional 
polytrauma points of contact; $228,982,000 shall be for 
treatment of Operation Enduring Freedom and Operation 
Iraqi Freedom veterans; and $25,000,000 shall be for 
prosthetics. 
MEDICAL ADMINISTRATION 
For an additional amount for ‘‘Medical Administra-
tion’’, $250,000,000, to remain available until expended. 
MEDICAL FACILITIES 
For an additional amount for ‘‘Medical Facilities’’, 
$595,000,000, to remain available until expended, of 
which $45,000,000 shall be used for facility and equip-
ment upgrades at the Department of Veterans Affairs 
polytrauma network sites; and $550,000,000 shall be for 
non-recurring maintenance as identified in the Depart-
ment of Veterans Affairs Facility Condition Assessment 
report: Provided, That the amount provided under this 
heading for non-recurring maintenance shall be allocated 
in a manner not subject to the Veterans Equitable Re-
119 
source Allocation: Provided further, That within 30 days 
of enactment of this division the Secretary shall submit 
to the Committees on Appropriations of both Houses of 
Congress an expenditure plan, by project, for non-recur-
ring maintenance prior to obligation: Provided further, 
That semi-annually, on October 1 and April 1, the Sec-
retary shall submit to the Committees on Appropriations 
of both Houses of Congress a report on the status of fund-
ing for non-recurring maintenance, including obligations 
and unobligated balances for each project identified in the 
expenditure plan. 
MEDICAL AND PROSTHETIC RESEARCH 
For an additional amount for ‘‘Medical and Pros-
thetic Research’’, $32,500,000, to remain available until 
expended, which shall be used for research related to the 
unique medical needs of returning Operation Enduring 
Freedom and Operation Iraqi Freedom veterans. 
DEPARTMENTAL ADMINISTRATION 
GENERAL OPERATING EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘General Operating 
Expenses’’, $83,200,000, to remain available until ex-
pended, of which $1,250,000 shall be for digitization of 
military records; $60,750,000 shall be for expenses related 
to hiring and training new claims processing personnel; 
up to $1,200,000 for an independent study of the organi-
120 
zational structure, management and coordination proc-
esses, including seamless transition, utilized by the De-
partment of Veterans Affairs to provide health care and 
benefits to active duty personnel and veterans, including 
those returning Operation Enduring Freedom and Oper-
ation Iraqi Freedom veterans; and $20,000,000 shall be 
for disability examinations: Provided, That not to exceed 
$1,250,000 of the amount appropriated under this head-
ing may be transferred to the Department of Defense for 
the digitization of military records used to verify stressors 
for benefits claims. 
INFORMATION TECHNOLOGY SYSTEMS 
For an additional amount for ‘‘Information Tech-
nology Systems’’, $35,100,000, to remain available until 
expended, of which $20,000,000 shall be for information 
technology support and improvements for processing of 
Operation Enduring Freedom and Operation Iraqi Free-
dom veterans benefits claims, including making electronic 
Department of Defense medical records available for 
claims processing and enabling electronic benefits applica-
tions by veterans; and $15,100,000 shall be for electronic 
data breach remediation and prevention. 
CONSTRUCTION, MINOR PROJECTS 
For an additional amount for ‘‘Construction, Minor 
Projects’’, $326,000,000, to remain available until ex-
pended, of which up to $36,000,000 shall be for construc-
121 
tion costs associated with the establishment of polytrauma 
residential transitional rehabilitation programs. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 4501. The Director of the Congressional Budget 
Office shall, not later than November 15, 2007, submit 
to the Committees on Appropriations of the House of Rep-
resentatives and the Senate a report projecting appropria-
tions necessary for the Departments of Defense and Vet-
erans Affairs to continue providing necessary health care 
to veterans of the conflicts in Iraq and Afghanistan. The 
projections should span several scenarios for the duration 
and number of forces deployed in Iraq and Afghanistan, 
and more generally, for the long-term health care needs 
of deployed troops engaged in the global war on terrorism 
over the next ten years. 
SEC. 4502. Notwithstanding any other provision of 
law, appropriations made by Public Law 110–5, which the 
Secretary of Veterans Affairs contributes to the Depart-
ment of Defense/Department of Veterans Affairs Health 
Care Sharing Incentive Fund under the authority of sec-
tion 8111(d) of title 38, United States Code, shall remain 
available until expended for any purpose authorized by 
section 8111 of title 38, United States Code. 
SEC. 4503. (a)(1) Notwithstanding any other provi-
sion of law, the Secretary of Veterans Affairs (referred
122 
to in this section as the ‘‘Secretary’’) may convey to the 
State of Texas, without consideration, all right, title, and 
interest of the United States in and to the parcel of real 
property comprising the location of the Marlin, Texas, De-
partment of Veterans Affairs Medical Center. 
(2) The property conveyed under paragraph (1) shall 
be used by the State of Texas for the purposes of a prison. 
(b) In carrying out the conveyance under subsection 
(a), the Secretary— 
(1) shall not be required to comply with, and 
shall not be held liable under, any Federal law (in-
cluding a regulation) relating to the environment or 
historic preservation; but 
(2) may, at the discretion of the Secretary, con-
duct environmental cleanup on the parcel to be con-
veyed, at a cost not to exceed $500,000, using 
amounts made available for environmental cleanup 
of sites under the jurisdiction of the Secretary. 
TITLE V—OTHER MATTERS 
CHAPTER 1 
DEPARTMENT OF AGRICULTURE 
FARM SERVICE AGENCY 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Salaries and Ex-
penses’’ of the Farm Service Agency, $37,500,000, to re-
123 
main available until September 30, 2008: Provided, That 
this amount shall only be available for network and data-
base/application stabilization. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5101. Of the funds made available through ap-
propriations to the Food and Drug Administration for fis-
cal year 2007, not less than $4,000,000 shall be for the 
Office of Women’s Health of such Administration. 
SEC. 5102. None of the funds made available to the 
Department of Agriculture for fiscal year 2007 may be 
used to implement the risk-based inspection program in 
the 30 prototype locations announced on February 22, 
2007, by the Under Secretary for Food Safety, or at any 
other locations, until the USDA Office of Inspector Gen-
eral has provided its findings to the Food Safety and In-
spection Service and the Committees on Appropriations of 
the House of Representatives and the Senate on the data 
used in support of the development and design of the risk- 
based inspection program and FSIS has addressed and 
resolved issues identified by OIG. 
CHAPTER 2 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5201. Hereafter, federal employees at the Na-
tional Energy Technology Laboratory shall be classified 
as inherently governmental for the purpose of the Federal
124 
Activities Inventory Reform Act of 1998 (31 U.S.C. 501 
note). 
SEC. 5202. None of the funds made available under 
this or any other Act shall be used during fiscal year 2007 
to make, or plan or prepare to make, any payment on 
bonds issued by the Administrator of the Bonneville Power 
Administration (referred in this section as the ‘‘Adminis-
trator’’) or for an appropriated Federal Columbia River 
Power System investment, if the payment is both— 
(1) greater, during any fiscal year, than the 
payments calculated in the rate hearing of the Ad-
ministrator to be made during that fiscal year using 
the repayment method used to establish the rates of 
the Administrator as in effect on October 1, 2006; 
and 
(2) based or conditioned on the actual or ex-
pected net secondary power sales receipts of the Ad-
ministrator. 
CHAPTER 3 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5301. (a) Section 102(a)(3)(B) of the Help 
America Vote Act of 2002 (42 U.S.C. 15302(a)(3)(B)) is 
amended by striking ‘‘January 1, 2006’’ and inserting 
‘‘March 1, 2008’’.
125 
(b) The amendment made by subsection (a) shall take 
effect as if included in the enactment of the Help America 
Vote Act of 2002. 
SEC. 5302. The structure of any of the offices or 
components within the Office of National Drug Control 
Policy shall remain as they were on October 1, 2006. None 
of the funds appropriated or otherwise made available in 
the Continuing Appropriations Resolution, 2007 (Public 
Law 110–5) may be used to implement a reorganization 
of offices within the Office of National Drug Control Pol-
icy without the explicit approval of the Committees on Ap-
propriations of the House of Representatives and the Sen-
ate. 
SEC. 5303. From the amount provided by section 
21067 of the Continuing Appropriations Resolution, 2007 
(Public Law 110–5), the National Archives and Records 
Administration may obligate monies necessary to carry out 
the activities of the Public Interest Declassification Board. 
SEC. 5304. Notwithstanding the notice requirement 
of the Transportation, Treasury, Housing and Urban De-
velopment, the Judiciary, the District of Columbia, and 
Independent Agencies Appropriations Act, 2006, 119 
Stat. 2509 (Public Law 109–115), as continued in section 
104 of the Continuing Appropriations Resolution, 2007 
(Public Law 110–5), the District of Columbia Courts may
126 
reallocate not more than $1,000,000 of the funds provided 
for fiscal year 2007 under the Federal Payment to the 
District of Columbia Courts for facilities among the items 
and entities funded under that heading for operations. 
SEC. 5305. (a) Not later than 90 days after the date 
of enactment of this division, the Secretary of the Treas-
ury, in coordination with the Securities and Exchange 
Commission and in consultation with the Departments of 
State and Energy, shall prepare and submit to the Senate 
Committee on Appropriations, the House Committee on 
Appropriations, the Senate Committee on Banking, Hous-
ing, and Urban Affairs, the House Committee on Finan-
cial Services, the Senate Foreign Relations Committee, 
and the House Foreign Affairs Committee a written re-
port, which may include a classified annex, containing the 
names of companies which either directly or through a 
parent or subsidiary company, including partly-owned sub-
sidiaries, are known to conduct significant business oper-
ations in Sudan relating to natural resource extraction, 
including oil-related activities and mining of minerals. The 
reporting provision shall not apply to companies operating 
under licenses from the Office of Foreign Assets Control 
or otherwise expressly exempted under United States law 
from having to obtain such licenses in order to operate 
in Sudan.
127 
(b) Not later than 45 days following the submission 
to Congress of the list of companies conducting business 
operations in Sudan relating to natural resource extrac-
tion as required above, the General Services Administra-
tion shall determine whether the United States Govern-
ment has an active contract for the procurement of goods 
or services with any of the identified companies, and pro-
vide notification to the appropriate committees of Con-
gress, which may include a classified annex, regarding the 
companies, nature of the contract, and dollar amounts in-
volved. 
(INCLUDING RESCISSION) 
SEC. 5306. (a) Of the funds provided for the General 
Services Administration, ‘‘Office of Inspector General’’ in 
section 21061 of the Continuing Appropriations Resolu-
tion, 2007 (division B of Public Law 109–289, as amend-
ed by Public Law 110–5), $4,500,000 are rescinded. 
(b) For an additional amount for the General Serv-
ices Administration, ‘‘Office of Inspector General’’, 
$4,500,000, to remain available until September 30, 2008. 
SEC. 5307. Section 21073 of the Continuing Appro-
priations Resolution, 2007 (Public Law 110–5) is amend-
ed by adding a new subsection (j) as follows: 
‘‘(j) Notwithstanding section 101, any appropriation 
or funds made available to the District of Columbia pursu-
ant to this division for ‘Federal Payment for Foster Care
128 
Improvement in the District of Columbia’ shall be avail-
able in accordance with an expenditure plan submitted by 
the Mayor of the District of Columbia not later than 60 
days after the enactment of this section which details the 
activities to be carried out with such Federal Payment.’’. 
CHAPTER 4 
DEPARTMENT OF HOMELAND SECURITY 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5401. Not to exceed $30,000,000 from unobli-
gated balances remaining from prior appropriations for 
United States Coast Guard, ‘‘Retired Pay’’, shall remain 
available until expended in the account and for the pur-
poses for which the appropriations were provided, includ-
ing the payment of obligations otherwise chargeable to 
lapsed or current appropriations for this purpose. 
SEC. 5402. (a) IN GENERAL.—Any contract, sub-
contract, task or delivery order described in subsection (b) 
shall contain the following: 
(1) A requirement for a technical review of all 
designs, design changes, and engineering change 
proposals, and a requirement to specifically address 
all engineering concerns identified in the review be-
fore the obligation of further funds may occur.
129 
(2) A requirement that the Coast Guard main-
tain technical warrant holder authority, or the equiv-
alent, for major assets. 
(3) A requirement that no procurement subject 
to subsection (b) for lead asset production or the im-
plementation of a major design change shall be en-
tered into unless an independent third party with no 
financial interest in the development, construction, 
or modification of any component of the asset, se-
lected by the Commandant, determines that such ac-
tion is advisable. 
(4) A requirement for independent life-cycle 
cost estimates of lead assets and major design and 
engineering changes. 
(5) A requirement for the measurement of con-
tractor and subcontractor performance based on the 
status of all work performed. For contracts under 
the Integrated Deepwater Systems program, such 
requirement shall include a provision that links 
award fees to successful acquisition outcomes (which 
shall be defined in terms of cost, schedule, and per-
formance). 
(6) A requirement that the Commandant of the 
Coast Guard assign an appropriate officer or em-
ployee of the Coast Guard to act as chair of each in-
130 
tegrated product team and higher-level team as-
signed to the oversight of each integrated product 
team. 
(7) A requirement that the Commandant of the 
Coast Guard may not award or issue any contract, 
task or delivery order, letter contract modification 
thereof, or other similar contract, for the acquisition 
or modification of an asset under a procurement 
subject to subsection (b) unless the Coast Guard and 
the contractor concerned have formally agreed to all 
terms and conditions or the head of contracting ac-
tivity for the Coast Guard determines that a compel-
ling need exists for the award or issue of such in-
strument. 
(b) CONTRACTS, SUBCONTRACTS, TASK AND DELIV-
ERY ORDERS COVERED.—Subsection (a) applies to— 
(1) any major procurement contract, first-tier 
subcontract, delivery or task order entered into by 
the Coast Guard; 
(2) any first-tier subcontract entered into under 
such a contract; and 
(3) any task or delivery order issued pursuant 
to such a contract or subcontract. 
(c) EXPENDITURE OF DEEPWATER FUNDS.—Of the 
funds available for the Integrated Deepwater Systems pro-
131 
gram, $650,000,000 may not be obligated until the Com-
mittees on Appropriations of the Senate and the House 
of Representatives receive an expenditure plan directly 
from the Coast Guard that— 
(1) defines activities, milestones, yearly costs, 
and life-cycle costs for each procurement of a major 
asset, including an independent cost estimate for 
each; 
(2) identifies life-cycle staffing and training 
needs of Coast Guard project managers and of pro-
curement and contract staff; 
(3) identifies competition to be conducted in 
each procurement; 
(4) describes procurement plans that do not 
rely on a single industry entity or contract; 
(5) contains very limited indefinite delivery/in-
definite quantity contracts and explains the need for 
any indefinite delivery/indefinite quantity contracts; 
(6) complies with all applicable acquisition 
rules, requirements, and guidelines, and incorporates 
the best systems acquisition management practices 
of the Federal Government; 
(7) complies with the capital planning and in-
vestment control requirements established by the Of-
132 
fice of Management and Budget, including circular 
A–11, part 7; 
(8) includes a certification by the head of con-
tracting activity for the Coast Guard and the Chief 
Procurement Officer of the Department of Home-
land Security that the Coast Guard has established 
sufficient controls and procedures and has sufficient 
staffing to comply with all contracting requirements, 
and that any conflicts of interest have been suffi-
ciently addressed; 
(9) includes a description of the process used to 
act upon deviations from the contractually specified 
performance requirements and clearly explains the 
actions taken on such deviations; 
(10) includes a certification that the Assistant 
Commandant of the Coast Guard for Engineering 
and Logistics is designated as the technical author-
ity for all engineering, design, and logistics decisions 
pertaining to the Integrated Deepwater Systems pro-
gram; and 
(11) identifies progress in complying with the 
requirements of subsection (a). 
(d) REPORTS.—(1) Not later than 30 days after the 
date of enactment of this division, the Commandant of the 
Coast Guard shall submit to the Committees on Appro-
133 
priations of the Senate and the House of Representatives; 
the Committee on Commerce, Science and Transportation 
of the Senate; and the Committee on Transportation and 
Infrastructure of the House of Representatives: (i) a re-
port on the resources (including training, staff, and exper-
tise) required by the Coast Guard to provide appropriate 
management and oversight of the Integrated Deepwater 
Systems program; and (ii) a report on how the Coast 
Guard will utilize full and open competition for any con-
tract that provides for the acquisition or modification of 
assets under, or in support of, the Integrated Deepwater 
Systems program, entered into after the date of enactment 
of this division. 
(2) Within 30 days following the submission of the 
expenditure plan required under subsection (c), the Gov-
ernment Accountability Office shall review the plan and 
brief the Committees on Appropriations of the Senate and 
the House of Representatives on its findings. 
SEC. 5403. None of the funds provided in this divi-
sion or any other Act may be used to alter or reduce oper-
ations within the Civil Engineering Program of the Coast 
Guard nationwide, including the civil engineering units, 
facilities, design and construction centers, maintenance 
and logistics command centers, the Coast Guard Academy 
and the Coast Guard Research and Development Center,
134 
except as specifically authorized by a statute enacted after 
the date of enactment of this division. 
(INCLUDING RESCISSIONS OF FUNDS) 
SEC. 5404. (a) RESCISSIONS.—The following unobli-
gated balances made available pursuant to section 505 of 
Public Law 109–90 are rescinded: $1,200,962 from the 
‘‘Office of the Secretary and Executive Management’’; 
$512,855 from the ‘‘Office of the Under Secretary for 
Management’’; $461,874 from the ‘‘Office of the Chief In-
formation Officer’’; $45,080 from the ‘‘Office of the Chief 
Financial Officer’’; $968,211 from Preparedness ‘‘Man-
agement and Administration’’; $1,215,486 from Science 
and Technology ‘‘Management and Administration’’; 
$450,000 from United States Secret Service ‘‘Salaries and 
Expenses’’; $450,000 from Federal Emergency Manage-
ment Agency ‘‘Administrative and Regional Operations’’; 
and $25,595,532 from United States Coast Guard ‘‘Oper-
ating Expenses’’. 
(b) ADDITIONAL APPROPRIATIONS.— 
(1) For an additional amount for United States 
Coast Guard ‘‘Acquisition, Construction, and Im-
provements’’, $30,000,000, to remain available until 
September 30, 2009, to mitigate the Service’s patrol 
boat operational gap; and 
(2) For an additional amount for the ‘‘Office of 
the Under Secretary for Management’’, $900,000,
135 
for an independent study to compare the Depart-
ment of Homeland Security senior career and polit-
ical staffing levels and senior career training pro-
grams with those of similarly structured cabinet-level 
agencies. 
SEC. 5405. (a) IN GENERAL.—With respect to con-
tracts entered into after June 1, 2007, and except as pro-
vided in subsection (b), no entity performing lead system 
integrator functions in the acquisition of a major system 
by the Department of Homeland Security may have any 
direct financial interest in the development or construction 
of any individual system or element of any system of sys-
tems. 
(b) EXCEPTION.—An entity described in subsection 
(a) may have a direct financial interest in the development 
or construction of an individual system or element of a 
system of systems if— 
(1) the Secretary of Homeland Security cer-
tifies to the Committees on Appropriations of the 
Senate and the House of Representatives, the Com-
mittee on Homeland Security of the House of Rep-
resentatives, the Committee on Transportation and 
Infrastructure of the House of Representatives, the 
Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Committee on Com-
136 
merce, Science and Transportation of the Senate 
that— 
(A) the entity was selected by the Depart-
ment of Homeland Security as a contractor to 
develop or construct the system or element con-
cerned through the use of competitive proce-
dures; and 
(B) the Department took appropriate steps 
to prevent any organizational conflict of interest 
in the selection process; or 
(2) the entity was selected by a subcontractor 
to serve as a lower-tier subcontractor, through a 
process over which the entity exercised no control. 
(c) CONSTRUCTION.—Nothing in this section shall be 
construed to preclude an entity described in subsection (a) 
from performing work necessary to integrate two or more 
individual systems or elements of a system of systems with 
each other. 
(d) REGULATIONS UPDATE.—Not later than June 1, 
2007, the Secretary of Homeland Security shall update 
the acquisition regulations of the Department of Home-
land Security in order to specify fully in such regulations 
the matters with respect to lead system integrators set 
forth in this section. Included in such regulations shall be: 
(1) a precise and comprehensive definition of the term
137 
‘‘lead system integrator’’, modeled after that used by the 
Department of Defense; and (2) a specification of various 
types of contracts and fee structures that are appropriate 
for use by lead system integrators in the production, field-
ing, and sustainment of complex systems. 
CHAPTER 5 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5501. Section 20515 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
inserting before the period: ‘‘; and of which, not to exceed 
$143,628,000 shall be available for contract support costs 
under the terms and conditions contained in Public Law 
109–54’’. 
SEC. 5502. Section 20512 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
inserting after the first dollar amount: ‘‘, of which not to 
exceed $7,300,000 shall be transferred to the ‘Indian 
Health Facilities’ account; the amount in the second pro-
viso shall be $18,000,000; the amount in the third proviso 
shall be $525,099,000; the amount in the ninth proviso 
shall be $269,730,000; and the $15,000,000 allocation of 
funding under the eleventh proviso shall not be required’’.
138 
SEC. 5503. Section 20501 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
inserting after ‘‘$55,663,000’’ the following: ‘‘of which 
$13,000,000 shall be for Save America’s Treasures’’. 
SEC. 5504. Funds made available to the United 
States Fish and Wildlife Service for fiscal year 2007 under 
the heading ‘‘Land Acquisition’’ may be used for land con-
servation partnerships authorized by the Highlands Con-
servation Act of 2004. 
CHAPTER 6 
DEPARTMENT OF HEALTH AND HUMAN 
SERVICES 
NATIONAL INSTITUTES OF HEALTH 
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS 
DISEASES 
(TRANSFER OF FUNDS) 
Of the amount provided by the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) for ‘‘National In-
stitute of Allergy and Infectious Diseases’’, $49,500,000 
shall be transferred to ‘‘Public Health and Social Services 
Emergency Fund’’ to carry out activities relating to ad-
vanced research and development as provided by section 
319L of the Public Health Service Act.
139 
OFFICE OF THE DIRECTOR 
(TRANSFER OF FUNDS) 
Of the amount provided by the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) for ‘‘Office of the 
Director’’, $49,500,000 shall be transferred to ‘‘Public 
Health and Social Services Emergency Fund’’ to carry out 
activities relating to advanced research and development 
as provided by section 319L of the Public Health Service 
Act. 
NATIONAL COUNCIL ON DISABILITY 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Salaries and Ex-
penses’’, $300,000, to remain available until expended, for 
necessary expenses related to the requirements of the 
Post-Katrina Emergency Management Reform Act of 
2006, as enacted by the Department of Homeland Secu-
rity Appropriations Act, 2007 (Public Law 109–295). 
GENERAL PROVISIONS—THIS CHAPTER 
(INCLUDING TRANSFERS OF FUNDS AND RESCISSION) 
SEC. 5601. Section 20602 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
inserting the following after ‘‘$5,000,000’’: ‘‘(together 
with an additional $7,000,000 which shall be transferred 
by the Pension Benefit Guaranty Corporation as an au-
140 
thorized administrative cost), to remain available through 
September 30, 2008,’’. 
SEC. 5602. Section 20607 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
inserting ‘‘of which $9,666,000 shall be for the Women’s 
Bureau,’’ after ‘‘for child labor activities,’’. 
SEC. 5603. Of the amount provided for ‘‘Department 
of Health and Human Services, Health Resources and 
Services Administration, Health Resources and Services’’ 
in the Continuing Appropriations Resolution, 2007 (divi-
sion B of Public Law 109–289, as amended by Public Law 
110–5), $23,000,000 shall be for Poison Control Centers. 
SEC. 5604. From the amounts made available by the 
Continuing Appropriations Resolution, 2007 (division B of 
Public Law 109–289, as amended by Public Law 110– 
5) for the Office of the Secretary, General Departmental 
Management under the Department of Health and Human 
Services, $1,000,000 are rescinded. 
SEC. 5605. Section 20625(b)(1) of the Continuing 
Appropriations Resolution, 2007 (division B of Public 
Law 109–289, as amended by Public Law 110–5) is 
amended by— 
(1) striking ‘‘$7,172,994,000’’ and inserting 
‘‘$7,176,431,000’’;
141 
(2) amending subparagraph (A) to read as fol-
lows: ‘‘(A) $5,454,824,000 shall be for basic grants 
under section 1124 of the Elementary and Sec-
ondary Education Act of 1965 (ESEA), of which up 
to $3,437,000 shall be available to the Secretary of 
Education on October 1, 2006, to obtain annually 
updated educational-agency-level census poverty data 
from the Bureau of the Census;’’; and 
(3) amending subparagraph (C) to read as fol-
lows: ‘‘(C) not to exceed $2,352,000 may be avail-
able for section 1608 of the ESEA and for a clear-
inghouse on comprehensive school reform under part 
D of title V of the ESEA;’’. 
SEC. 5606. The provision in the first proviso under 
the heading ‘‘Rehabilitation Services and Disability Re-
search’’ in the Department of Education Appropriations 
Act, 2006, relating to alternative financing programs 
under section 4(b)(2)(D) of the Assistive Technology Act 
of 1998 shall not apply to funds appropriated by the Con-
tinuing Appropriations Resolution, 2007. 
SEC. 5607. Notwithstanding sections 20639 and 
20640 of the Continuing Appropriations Resolution, 2007, 
as amended by section 2 of the Revised Continuing Appro-
priations Resolution, 2007 (Public Law 110–5), the Chief 
Executive Officer of the Corporation for National and
142 
Community Service may transfer an amount of not more 
than $1,360,000 from the account under the heading 
‘‘National and Community Service Programs, Operating 
Expenses’’ under the heading ‘‘Corporation for National 
and Community Service’’, to the account under the head-
ing ‘‘Salaries and Expenses’’ under the heading ‘‘Corpora-
tion for National and Community Service’’. 
SEC. 5608. (a) Section 1310.12(a) of title 45, Code 
of Federal Regulations, shall take effect 30 days after the 
date of enactment of this division. 
(b)(1) Notwithstanding subsection (a), any vehicle 
used to transport children for a Head Start program as 
of January 1, 2007, shall not be subject to a requirement 
under such section (including a requirement based on the 
definitions set forth or referenced in section 1310.3 or any 
other provision set forth or referenced in part 1310 of 
such title, or any corresponding similar regulation or rul-
ing) regarding rear emergency exit doors, for 1 year after 
that date of enactment. 
(2) Not later than 60 days after the National High-
way Traffic Safety Administration of the Department of 
Transportation submits its study on occupant protection 
on Head Start transit vehicles (related to Government Ac-
countability Office report GAO–06–767R), the Secretary 
of Health and Human Services shall review and shall re-
143 
vise as necessary the allowable alternate vehicle standards 
described in that part 1310 (or any corresponding similar 
regulation or ruling) relating to allowable alternate vehi-
cles used to transport children for a Head Start program. 
In making any such revision, the Secretary shall revise 
the standards to be consistent with the findings contained 
in such study, including making a determination on the 
exemption of such a vehicle from Federal seat spacing re-
quirements, and Federal supporting seating requirements 
related to compartmentalization, if such vehicle meets all 
other applicable Federal motor vehicle safety standards, 
including standards for seating systems, occupant crash 
protection, seat belt assemblies, and child restraint an-
chorage systems consistent with that part 1310 (or any 
corresponding similar regulation or ruling). 
(3) Notwithstanding subsection (a), until such date 
as the Secretary of Health and Human Services completes 
the review and any necessary revision specified in para-
graph (2), the provisions of section 1310.12(a) relating 
to Federal seat spacing requirements, and Federal sup-
porting 
seating 
requirements 
related 
to 
compartmentalization, for allowable alternate vehicles 
used to transport children for a Head Start program, shall 
not apply to such a vehicle if such vehicle meets all other
144 
applicable Federal motor vehicle safety standards, as de-
scribed in paragraph (2). 
SEC. 5609. (a)(1) Section 3(37)(G) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002(37)(G)) (as amended by section 1106(a) of the Pen-
sion Protection Act of 2006) is amended— 
(A) in clause (i)(II)(aa), by striking ‘‘for each 
of the 3 plan years immediately before the date of 
the enactment of the Pension Protection Act of 
2006,’’ and inserting ‘‘for each of the 3 plan years 
immediately preceding the first plan year for which 
the election under this paragraph is effective with 
respect to the plan,’’; 
(B) in clause (ii), by striking ‘‘starting with the 
first plan year ending after the date of the enact-
ment of the Pension Protection Act of 2006’’ and in-
serting ‘‘starting with any plan year beginning on or 
after January 1, 1999, and ending before January 
1, 2008, as designated by the plan in the election 
made under clause (i)(II)’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(vii) For purposes of this Act and the Internal Rev-
enue Code of 1986, a plan making an election under this 
subparagraph shall be treated as maintained pursuant to
145 
a collective bargaining agreement if a collective bargaining 
agreement, expressly or otherwise, provides for or permits 
employer contributions to the plan by one or more employ-
ers that are signatory to such agreement, or participation 
in the plan by one or more employees of an employer that 
is signatory to such agreement, regardless of whether the 
plan was created, established, or maintained for such em-
ployees by virtue of another document that is not a collec-
tive bargaining agreement.’’. 
(2) Paragraph (6) of section 414(f) of the Internal 
Revenue Code of 1986 (relating to election with regard 
to multiemployer status) (as amended by section 1106(b) 
of the Pension Protection Act of 2006) is amended— 
(A) in subparagraph (A)(ii)(I), by striking ‘‘for 
each of the 3 plan years immediately before the date 
of enactment of the Pension Protection Act of 
2006,’’ and inserting ‘‘for each of the 3 plan years 
immediately preceding the first plan year for which 
the election under this paragraph is effective with 
respect to the plan,’’; 
(B) in subparagraph (B), by striking ‘‘starting 
with the first plan year ending after the date of the 
enactment of the Pension Protection Act of 2006’’ 
and inserting ‘‘starting with any plan year beginning 
on or after January 1, 1999, and ending before Jan-
146 
uary 1, 2008, as designated by the plan in the elec-
tion made under subparagraph (A)(ii)’’; and 
(C) by adding at the end the following new sub-
paragraph: 
‘‘(F) MAINTENANCE
UNDER
COLLECTIVE 
BARGAINING
AGREEMENT.—For purposes of 
this title and the Employee Retirement Income 
Security Act of 1974, a plan making an election 
under this paragraph shall be treated as main-
tained pursuant to a collective bargaining 
agreement if a collective bargaining agreement, 
expressly or otherwise, provides for or permits 
employer contributions to the plan by one or 
more employers that are signatory to such 
agreement, or participation in the plan by one 
or more employees of an employer that is signa-
tory to such agreement, regardless of whether 
the plan was created, established, or maintained 
for such employees by virtue of another docu-
ment that is not a collective bargaining agree-
ment.’’. 
(b)(1) Clause (vi) of section 3(37)(G) of the Em-
ployee Retirement Income Security Act of 1974 (as 
amended by section 1106(a) of the Pension Protection Act 
of 2006) is amended by striking ‘‘if it is a plan—’’ and
147 
all that follows and inserting the following: ‘‘if it is a plan 
sponsored by an organization which is described in section 
501(c)(5) of the Internal Revenue Code of 1986 and ex-
empt from tax under section 501(a) of such Code and 
which was established in Chicago, Illinois, on August 12, 
1881.’’. 
(2) Subparagraph (E) of section 414(f)(6) of the In-
ternal Revenue Code of 1986 (as amended by section 
1106(b) of the Pension Protection Act of 2006) is amend-
ed by striking ‘‘if it is a plan—’’ and all that follows and 
inserting the following: ‘‘if it is a plan sponsored by an 
organization which is described in section 501(c)(5) and 
exempt from tax under section 501(a) and which was es-
tablished in Chicago, Illinois, on August 12, 1881.’’. 
(c) The amendments made by this section shall take 
effect as if included in section 1106 of the Pension Protec-
tion Act of 2006. 
SEC. 
5610. 
(a) 
Subclause 
(III) 
of 
section 
420(f)(2)(E)(i) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘subsection (c)(2)(E)(ii)(II)’’ and in-
serting ‘‘subsection (c)(3)(E)(ii)(II)’’. 
(b) Section 420(e)(2)(B) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘funding shortfall’’ 
and inserting ‘‘funding target’’.
148 
(c) The amendments made by this section shall take 
effect as if included in the provisions of the Pension Pro-
tection Act of 2006 to which they relate. 
SEC. 5611. (a) Subparagraph (A) of section 
420(c)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘transfer.’’ and inserting ‘‘transfer or, in 
the case of a transfer which involves a plan maintained 
by an employer described in subsection (f)(2)(E)(i)(III), 
if the plan meets the requirements of subsection 
(f)(2)(D)(i)(II).’’. 
(b) The amendment made by subsection (a) shall 
apply to transfers after the date of the enactment of this 
division. 
SEC. 5612. (a) Section 402(i)(1) of the Pension Pro-
tection Act of 2006 is amended by striking ‘‘December 28, 
2007’’ and inserting ‘‘January 1, 2008’’. 
(b) The amendment made by subsection (a) shall take 
effect as if included in section 402 of the Pension Protec-
tion Act of 2006.
149 
CHAPTER 7 
LEGISLATIVE BRANCH 
HOUSE OF REPRESENTATIVES 
PAYMENT TO WIDOWS AND HEIRS OF DECEASED 
MEMBERS OF CONGRESS 
For payment to Gloria W. Norwood, widow of Charles 
W. Norwood, Jr., late a Representative from the State of 
Georgia, $165,200. 
For payment to James McDonald, Jr., widower of 
Juanita Millender-McDonald, late a Representative from 
the State of California, $165,200. 
CHAPTER 8 
GENERAL PROVISIONS—THIS CHAPTER 
TECHNICAL AMENDMENT 
SEC. 5801. (a) Notwithstanding any other provision 
of law, subsection (c) under the heading ‘‘Assistance for 
the Independent States of the Former Soviet Union’’ in 
Public Law 109–102, shall not apply to funds appro-
priated by the Continuing Appropriations Resolution, 
2007 (Public Law 109–289, division B) as amended by 
Public Laws 109–369, 109–383, and 110–5. 
(b) Section 534(k) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 
2006 (Public Law 109–102) is amended, in the second 
proviso, by inserting after ‘‘subsection (b) of that section’’
150 
the following: ‘‘and the requirement that a majority of the 
members of the board of directors be United States citi-
zens provided in subsection (d)(3)(B) of that section’’. 
(c) Subject to section 101(c)(2) of the Continuing 
Appropriations Resolution, 2007 (division B of Public 
Law 109–289, as amended by Public Law 110–5), the 
amount of funds appropriated for ‘‘Foreign Military Fi-
nancing Program’’ pursuant to such Resolution shall be 
construed to be the total of the amount appropriated for 
such program by section 20401 of that Resolution and the 
amount made available for such program by section 591 
of the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 2006 (Public Law 109– 
102) which is made applicable to the fiscal year 2007 by 
the provisions of such Resolution. 
SEC. 5802. Notwithstanding any provision of title I 
of division B of the Continuing Appropriations Resolution, 
2007 (division B of Public Law 109–289, as amended by 
Public Laws 109–369, 109–383, and 110–5), the dollar 
amount limitation of the first proviso under the heading, 
‘‘Administration of Foreign Affairs, Diplomatic and Con-
sular Programs’’, in title IV of the Science, State, Justice, 
Commerce, and Related Agencies Appropriations Act, 
2006 (Public Law 109–108; 119 Stat. 2319) shall not
151 
apply to funds appropriated under such heading for fiscal 
year 2007. 
CHAPTER 9 
DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT 
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to carry out the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992, $6,150,000, to remain available until expended, 
to be derived from the Federal Housing Enterprises Over-
sight Fund and to be subject to the same terms and condi-
tions pertaining to funds provided under this heading in 
Public Law 109–115: Provided, That not to exceed the 
total amount provided for these activities for fiscal year 
2007 shall be available from the general fund of the Treas-
ury to the extent necessary to incur obligations and make 
expenditures pending the receipt of collections to the 
Fund: Provided further, That the general fund amount 
shall be reduced as collections are received during the fis-
cal year so as to result in a final appropriation from the 
general fund estimated at not more than $0. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 5901. Hereafter, funds limited or appropriated 
for the Department of Transportation may be obligated
152 
or expended to grant authority to a Mexican motor carrier 
to operate beyond United States municipalities and com-
mercial zones on the United States-Mexico border only to 
the extent that— 
(1) granting such authority is first tested as 
part of a pilot program; 
(2) such pilot program complies with the re-
quirements of section 350 of Public Law 107–87 
and the requirements of section 31315(c) of title 49, 
United States Code, related to pilot programs; and 
(3) simultaneous and comparable authority to 
operate within Mexico is made available to motor 
carriers domiciled in the United States. 
SEC. 5902. Funds provided for the ‘‘National Trans-
portation Safety Board, Salaries and Expenses’’ in section 
21031 of the Continuing Appropriations Resolution, 2007 
(division B of Public Law 109–289, as amended by Public 
Law 110–5) include amounts necessary to make lease pay-
ments due in fiscal year 2007 only, on an obligation in-
curred in 2001 under a capital lease. 
SEC. 5903. Section 21033 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
adding after the second proviso: ‘‘: Provided further, That 
paragraph (2) under such heading in Public Law 109–
153 
115 (119 Stat. 2441) shall be funded at $149,300,000, 
but additional section 8 tenant protection rental assistance 
costs may be funded in 2007 by using unobligated bal-
ances, notwithstanding the purposes for which such 
amounts were appropriated, including recaptures and car-
ryover, remaining from funds appropriated to the Depart-
ment of Housing and Urban Development under this 
heading, the heading ‘Annual Contributions for Assisted 
Housing’, the heading ‘Housing Certificate Fund’, and the 
heading ‘Project-Based Rental Assistance’ for fiscal year 
2006 and prior fiscal years: Provided further, That para-
graph (3) under such heading in Public Law 109–115 
(119 Stat. 2441) shall be funded at $47,500,000: Pro-
vided further, That paragraph (4) under such heading in 
Public Law 109–115 (119 Stat. 2441) shall be funded at 
$5,900,000: Provided further, That paragraph (5) under 
such heading in Public Law 109–115 (119 Stat. 2441) 
shall 
be 
funded 
at 
$1,281,100,000, 
of 
which 
$1,251,100,000 shall be allocated for the calendar year 
2007 funding cycle on a pro rata basis to public housing 
agencies based on the amount public housing agencies 
were eligible to receive in calendar year 2006, and of which 
up to $30,000,000 shall be available to the Secretary to 
allocate to public housing agencies that need additional 
funds to administer their section 8 programs, with up to
154 
$20,000,000 to be for fees associated with section 8 tenant 
protection rental assistance’’. 
SEC. 5904. Section 232(b) of the Departments of 
Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 2001 
(Public Law 106–377) is amended to read as follows: 
‘‘(b) APPLICABILITY.—In the case of any dwelling 
unit that, upon the date of the enactment of this Act, is 
assisted under a housing assistance payment contract 
under section 8(o)(13) as in effect before such enactment, 
or under section 8(d)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(d)(2)) as in effect before the 
enactment of the Quality Housing and Work Responsi-
bility Act of 1998 (title V of Public Law 105–276), assist-
ance may be renewed or extended under such section 
8(o)(13), as amended by subsection (a), provided that the 
initial contract term and rent of such renewed or extended 
assistance shall be determined pursuant to subparagraphs 
(F) and (H), and subparagraphs (C) and (D) of such sec-
tion shall not apply to such extensions or renewals.’’.
155 
CHAPTER 10 
GENERAL PROVISIONS—THIS DIVISION 
AVAILABILITY OF FUNDS 
SEC. 5951. No part of any appropriation contained 
in this division shall remain available for obligation beyond 
the current fiscal year unless expressly so provided herein. 
DESIGNATION FOR TITLES I AND II 
SEC. 5952. Amounts in titles I and II are designated 
as emergency requirements pursuant to section 402 of H. 
Con. Res. 95 (109th Congress), and as making appropria-
tions for contingency operations directly related to the 
global war on terrorism and other unanticipated defense- 
related operations pursuant to section 402 of H. Con. Res. 
376 (109th Congress) as made applicable to the House 
of Representatives by section 511(a)(4) of H. Res. 6 
(110th Congress). 
EMERGENCY DESIGNATION FOR OTHER TITLES 
SEC. 5953. Amounts in titles III, IV, and VI are des-
ignated as emergency requirements pursuant to section 
402 of H. Con. Res. 95 (109th Congress), and pursuant 
to section 501 of H. Con. Res. 376 (109th Congress) as 
made applicable to the House of Representatives by sec-
tion 511(a)(4) of H. Res. 6 (110th Congress).
156 
TITLE 
VI—ELIMINATION 
OF 
SCHIP 
SHORTFALL 
AND 
OTHER HEALTH MATTERS 
DEPARTMENT OF HEALTH AND HUMAN 
SERVICES 
CENTERS FOR MEDICARE AND MEDICAID SERVICES 
STATE CHILDREN’S HEALTH INSURANCE FUND 
For an additional amount to provide additional allot-
ments to remaining shortfall States under section 
2104(h)(4) of the Social Security Act, as inserted by sec-
tion 6001, such sums as may be necessary, but not to ex-
ceed $650,000,000 for fiscal year 2007, to remain avail-
able until expended. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 6001. (a) ELIMINATION OF REMAINDER OF 
SCHIP FUNDING SHORTFALLS, TIERED MATCH, AND 
OTHER
LIMITATION
ON
EXPENDITURES.—Section 
2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), 
as added by section 201(a) of the National Institutes of 
Health Reform Act of 2006 (Public Law 109–482), is 
amended— 
(1) in the heading for paragraph (2), by strik-
ing ‘‘REMAINDER
OF
REDUCTION’’ and inserting 
‘‘PART’’; and
157 
(2) by striking paragraph (4) and inserting the 
following: 
‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE-
MAINDER OF FISCAL YEAR 2007 FUNDING SHORT-
FALLS.— 
‘‘(A) IN
GENERAL.—From the amounts 
provided in advance in appropriations Acts, the 
Secretary shall allot to each remaining shortfall 
State described in subparagraph (B) such 
amount as the Secretary determines will elimi-
nate the estimated shortfall described in such 
subparagraph for the State for fiscal year 2007. 
‘‘(B) REMAINING SHORTFALL STATE DE-
SCRIBED.—For purposes of subparagraph (A), 
a remaining shortfall State is a State with a 
State child health plan approved under this title 
for which the Secretary estimates, on the basis 
of the most recent data available to the Sec-
retary as of the date of the enactment of this 
paragraph, that the projected Federal expendi-
tures under such plan for the State for fiscal 
year 2007 will exceed the sum of— 
‘‘(i) the amount of the State’s allot-
ments for each of fiscal years 2005 and
158 
2006 that will not be expended by the end 
of fiscal year 2006; 
‘‘(ii) the amount of the State’s allot-
ment for fiscal year 2007; and 
‘‘(iii) the amounts, if any, that are to 
be redistributed to the State during fiscal 
year 2007 in accordance with paragraphs 
(1) and (2).’’. 
(b) CONFORMING AMENDMENTS.—Section 2104(h) 
of such Act (42 U.S.C. 1397dd(h)) (as so added), is 
amended— 
(1) in paragraph (1)(B), by striking ‘‘subject to 
paragraph (4)(B) and’’; 
(2) in paragraph (2)(B), by striking ‘‘subject to 
paragraph (4)(B) and’’; 
(3) in paragraph (5)(A), by striking ‘‘and (3)’’ 
and inserting ‘‘(3), and (4)’’; and 
(4) in paragraph (6)— 
(A) in the first sentence— 
(i) by inserting ‘‘or allotted’’ after 
‘‘redistributed’’; and 
(ii) by inserting ‘‘or allotments’’ after 
‘‘redistributions’’; and 
(B) by striking ‘‘and (3)’’ and inserting 
‘‘(3), and (4)’’.
159 
SEC. 6002. (a) PROHIBITION.— 
(1) LIMITATION
ON
SECRETARIAL
AUTHOR-
ITY.—Notwithstanding any other provision of law, 
the Secretary of Health and Human Services shall 
not, prior to the date that is 1 year after the date 
of enactment of this division, take any action 
(through promulgation of regulation, issuance of 
regulatory guidance, or other administrative action) 
to— 
(A) finalize or otherwise implement provi-
sions contained in the proposed rule published 
on January 18, 2007, on pages 2236 through 
2248 of volume 72, Federal Register (relating 
to parts 433, 447, and 457 of title 42, Code of 
Federal Regulations); 
(B) promulgate or implement any rule or 
provisions similar to the provisions described in 
subparagraph (A) pertaining to the Medicaid 
program established under title XIX of the So-
cial Security Act or the State Children’s Health 
Insurance Program established under title XXI 
of such Act; or 
(C) promulgate or implement any rule or 
provisions restricting payments for graduate 
medical education under the Medicaid program.
160 
(2) CONTINUATION
OF
OTHER
SECRETARIAL 
AUTHORITY.—The Secretary of Health and Human 
Service shall not be prohibited during the period de-
scribed in paragraph (1) from taking any action 
(through promulgation of regulation, issuance of 
regulatory guidance, or other administrative action) 
to enforce a provision of law in effect as of the date 
of enactment of this division with respect to the 
Medicaid program or the State Children’s Health In-
surance Program, or to promulgate or implement a 
new rule or provision during such period with re-
spect to such programs, other than a rule or provi-
sion described in paragraph (1) and subject to the 
prohibition set forth in that paragraph. 
(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT 
PRESCRIPTION
PADS
UNDER
THE
MEDICAID
PRO-
GRAM.— 
(1) IN GENERAL.—Section 1903(i) of the Social 
Security Act (42 U.S.C. 1396b(i)) is amended— 
(A) by striking ‘‘or’’ at the end of para-
graph (21); 
(B) by striking the period at the end of 
paragraph (22) and inserting ‘‘; or’’; and 
(C) by inserting after paragraph (22) the 
following new paragraph:
161 
‘‘(23) with respect to amounts expended for 
medical assistance for covered outpatient drugs (as 
defined in section 1927(k)(2)) for which the pre-
scription was executed in written (and non-elec-
tronic) form unless the prescription was executed on 
a tamper-resistant pad.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall apply to prescriptions exe-
cuted after September 30, 2007. 
(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIV-
ERS.— 
(1) AUTHORITY
TO
CONTINUE
TO
OPERATE 
WAIVERS.—Notwithstanding any other provision of 
law, any State that is operating a Pharmacy Plus 
waiver described in paragraph (2) which would oth-
erwise expire on June 30, 2007, may elect to con-
tinue to operate the waiver through December 31, 
2009. 
(2) PHARMACY PLUS WAIVER DESCRIBED.—For 
purposes of paragraph (1), a Pharmacy Plus waiver 
described in this paragraph is a waiver approved by 
the Secretary of Health and Human Services under 
the authority of section 1115 of the Social Security 
Act (42 U.S.C. 1315) that provides coverage for pre-
scription drugs for individuals who have attained age
162 
65 and whose family income does not exceed 200 
percent of the poverty line (as defined in section 
2110(c)(5) of such Act (42 U.S.C. 1397jj(c)(5)). 
TITLE VII—FAIR MINIMUM WAGE 
AND TAX RELIEF 
Subtitle A—Fair Minimum Wage 
SEC. 7101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Fair Minimum 
Wage Act of 2007’’. 
SEC. 7102. MINIMUM WAGE. 
(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 
to read as follows: 
‘‘(1) except as otherwise provided in this sec-
tion, not less than— 
‘‘(A) $5.85 an hour, beginning on the 60th 
day after the date of enactment of the Fair 
Minimum Wage Act of 2007; 
‘‘(B) $6.55 an hour, beginning 12 months 
after that 60th day; and 
‘‘(C) $7.25 an hour, beginning 24 months 
after that 60th day;’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect 60 days after the date of 
enactment of this division.
163 
SEC. 7103. APPLICABILITY OF MINIMUM WAGE TO AMER-
ICAN SAMOA AND THE COMMONWEALTH OF 
THE NORTHERN MARIANA ISLANDS. 
(a) IN GENERAL.—Section 6 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206) shall apply to 
American Samoa and the Commonwealth of the Northern 
Mariana Islands. 
(b) TRANSITION.—Notwithstanding subsection (a)— 
(1) the minimum wage applicable to the Com-
monwealth of the Northern Mariana Islands under 
section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) shall be— 
(A) $3.55 an hour, beginning on the 60th 
day after the date of enactment of this division; 
and 
(B) increased by $0.50 an hour (or such 
lesser amount as may be necessary to equal the 
minimum wage under section 6(a)(1) of such 
Act), beginning 1 year after the date of enact-
ment of this division and each year thereafter 
until the minimum wage applicable to the Com-
monwealth of the Northern Mariana Islands 
under this paragraph is equal to the minimum 
wage set forth in such section; and 
(2) the minimum wage applicable to American 
Samoa under section 6(a)(1) of the Fair Labor
164 
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 
be— 
(A) the applicable wage rate in effect for 
each industry and classification under section 
697 of title 29, Code of Federal Regulations, on 
the date of enactment of this division; 
(B) increased by $0.50 an hour, beginning 
on the 60th day after the date of enactment of 
this division; and 
(C) increased by $0.50 an hour (or such 
lesser amount as may be necessary to equal the 
minimum wage under section 6(a)(1) of such 
Act), beginning 1 year after the date of enact-
ment of this division and each year thereafter 
until the minimum wage applicable to American 
Samoa under this paragraph is equal to the 
minimum wage set forth in such section. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—The Fair Labor Standards 
Act of 1938 is amended— 
(A) by striking sections 5 and 8; and 
(B) in section 6(a), by striking paragraph 
(3) and redesignating paragraphs (4) and (5) 
as paragraphs (3) and (4), respectively.
165 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect 60 days after the 
date of enactment of this division. 
SEC. 7104. STUDY ON PROJECTED IMPACT. 
(a) STUDY.—Beginning on the date that is 26 
months after the date of enactment of this division, the 
Secretary of Labor shall, through the Bureau of Labor 
Statistics, conduct a study to— 
(1) assess the assess the impact of the wage in-
creases required by this division through such date; 
and 
(2) to project the impact of any further wage 
increase, 
on living standards and rates of employment in American 
Samoa and the Commonwealth of the Northern Mariana 
Islands. 
(b) REPORT.—Not later than the date that is 32 
months after the date of enactment of this division, the 
Secretary of Labor shall transmit to Congress a report 
on the findings of the study required by subsection (a).
166 
Subtitle B—Small Business Tax 
Incentives 
SEC. 7201. SHORT TITLE; AMENDMENT OF CODE; TABLE OF 
CONTENTS. 
(a) SHORT TITLE.—This subtitle may be cited as the 
‘‘Small Business and Work Opportunity Tax Act of 
2007’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this subtitle an 
amendment or repeal is expressed in terms of an amend-
ment to, or repeal of, a section or other provision, the ref-
erence shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this subtitle is as follows: 
Sec. 7201. Short title; amendment of Code; table of contents. 
PART 1—SMALL BUSINESS TAX RELIEF PROVISIONS 
SUBPART A—GENERAL PROVISIONS 
Sec. 7211. Extension and modification of work opportunity tax credit. 
Sec. 7212. Extension and increase of expensing for small business. 
Sec. 7213. Determination of credit for certain taxes paid with respect to em-
ployee cash tips. 
Sec. 7214. Waiver of individual and corporate alternative minimum tax limits 
on work opportunity credit and credit for taxes paid with re-
spect to employee cash tips. 
Sec. 7215. Family business tax simplification. 
SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES 
Sec. 7221. Extension of increased expensing for qualified section 179 Gulf Op-
portunity Zone property. 
Sec. 7222. Extension and expansion of low-income housing credit rules for 
buildings in the GO Zones. 
Sec. 7223. Special tax-exempt bond financing rule for repairs and reconstruc-
tions of residences in the GO Zones.
167 
Sec. 7224. GAO study of practices employed by State and local governments 
in allocating and utilizing tax incentives provided pursuant to 
the Gulf Opportunity Zone Act of 2005. 
SUBPART C—SUBCHAPTER S PROVISIONS 
Sec. 7231. Capital gain of S corporation not treated as passive investment in-
come. 
Sec. 7232. Treatment of bank director shares. 
Sec. 7233. Special rule for bank required to change from the reserve method 
of accounting on becoming S corporation. 
Sec. 7234. Treatment of the sale of interest in a qualified subchapter S sub-
sidiary. 
Sec. 7235. Elimination of all earnings and profits attributable to pre-1983 
years for certain corporations. 
Sec. 7236. Deductibility of interest expense on indebtedness incurred by an 
electing small business trust to acquire S corporation stock. 
PART 2—REVENUE PROVISIONS 
Sec. 7241. Increase in age of children whose unearned income is taxed as if 
parent’s income. 
Sec. 7242. Suspension of certain penalties and interest. 
Sec. 7243. Modification of collection due process procedures for employment 
tax liabilities. 
Sec. 7244. Permanent extension of IRS user fees. 
Sec. 7245. Increase in penalty for bad checks and money orders. 
Sec. 7246. Understatement of taxpayer liability by return preparers. 
Sec. 7247. Penalty for filing erroneous refund claims. 
Sec. 7248. Time for payment of corporate estimated taxes. 
PART 1—SMALL BUSINESS TAX RELIEF 
PROVISIONS 
Subpart A—General Provisions 
SEC. 7211. EXTENSION AND MODIFICATION OF WORK OP-
PORTUNITY TAX CREDIT. 
(a) EXTENSION.—Section 51(c)(4)(B) (relating to 
termination) is amended by striking ‘‘December 31, 2007’’ 
and inserting ‘‘August 31, 2011’’. 
(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED 
COMMUNITY RESIDENTS.— 
(1) IN
GENERAL.—Paragraph (5) of section 
51(d) is amended to read as follows:
168 
‘‘(5) DESIGNATED COMMUNITY RESIDENTS.— 
‘‘(A) IN GENERAL.—The term ‘designated 
community resident’ means any individual who 
is certified by the designated local agency— 
‘‘(i) as having attained age 18 but not 
age 40 on the hiring date, and 
‘‘(ii) as having his principal place of 
abode within an empowerment zone, enter-
prise community, renewal community, or 
rural renewal county. 
‘‘(B) INDIVIDUAL MUST CONTINUE TO RE-
SIDE IN ZONE, COMMUNITY, OR COUNTY.—In 
the case of a designated community resident, 
the term ‘qualified wages’ shall not include 
wages paid or incurred for services performed 
while the individual’s principal place of abode is 
outside an empowerment zone, enterprise com-
munity, renewal community, or rural renewal 
county. 
‘‘(C) RURAL RENEWAL COUNTY.—For pur-
poses of this paragraph, the term ‘rural renewal 
county’ means any county which— 
‘‘(i) is outside a metropolitan statis-
tical area (defined as such by the Office of 
Management and Budget), and
169 
‘‘(ii) during the 5-year periods 1990 
through 1994 and 1995 through 1999 had 
a net population loss.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 51(d)(1) is amended to read as fol-
lows: 
‘‘(D) a designated community resident,’’. 
(c) CLARIFICATION OF TREATMENT OF INDIVIDUALS 
UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) 
of section 51(d)(6) (relating to vocational rehabilitation 
referral) is amended by striking ‘‘or’’ at the end of clause 
(i), by striking the period at the end of clause (ii) and 
inserting ‘‘, or’’, and by adding at the end the following 
new clause: 
‘‘(iii) an individual work plan devel-
oped and implemented by an employment 
network pursuant to subsection (g) of sec-
tion 1148 of the Social Security Act with 
respect to which the requirements of such 
subsection are met.’’. 
(d) TREATMENT OF DISABLED VETERANS UNDER 
THE WORK OPPORTUNITY TAX CREDIT.— 
(1) DISABLED
VETERANS
TREATED
AS
MEM-
BERS OF TARGETED GROUP.—
170 
(A) IN
GENERAL.—Subparagraph (A) of 
section 51(d)(3) (relating to qualified veteran) 
is amended by striking ‘‘agency as being a 
member of a family’’ and all that follows and 
inserting ‘‘agency as— 
‘‘(i) being a member of a family re-
ceiving assistance under a food stamp pro-
gram under the Food Stamp Act of 1977 
for at least a 3-month period ending dur-
ing the 12-month period ending on the hir-
ing date, or 
‘‘(ii) entitled to compensation for a 
service-connected disability, and— 
‘‘(I) having a hiring date which is 
not more that 1 year after having 
been discharged or released from ac-
tive duty in the Armed Forces of the 
United States, or 
‘‘(II) having aggregate periods of 
unemployment during the 1-year pe-
riod ending on the hiring date which 
equal or exceed 6 months.’’. 
(B) DEFINITIONS.—Paragraph (3) of sec-
tion 51(d) is amended by adding at the end the 
following new subparagraph:
171 
‘‘(C) OTHER DEFINITIONS.—For purposes 
of subparagraph (A), the terms ‘compensation’ 
and ‘service-connected’ have the meanings given 
such terms under section 101 of title 38, 
United States Code.’’. 
(2) INCREASE IN AMOUNT OF WAGES TAKEN 
INTO
ACCOUNT
FOR
DISABLED
VETERANS.—Para-
graph (3) of section 51(b) is amended— 
(A) by inserting ‘‘($12,000 per year in the 
case of any individual who is a qualified veteran 
by reason of subsection (d)(3)(A)(ii))’’ before 
the period at the end, and 
(B) by striking ‘‘ONLY FIRST $6,000 OF’’ in 
the heading and inserting ‘‘LIMITATION ON’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after the date of the enactment of this divi-
sion. 
SEC. 7212. EXTENSION AND INCREASE OF EXPENSING FOR 
SMALL BUSINESS. 
(a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), 
(c)(2), and (d)(1)(A)(ii) of section 179 (relating to election 
to expense certain depreciable business assets) are each 
amended by striking ‘‘2010’’ and inserting ‘‘2011’’.
172 
(b) INCREASE IN LIMITATIONS.—Subsection (b) of 
section 179 is amended— 
(1) by striking ‘‘$100,000 in the case of taxable 
years beginning after 2002’’ in paragraph (1) and 
inserting ‘‘$125,000 in the case of taxable years be-
ginning after 2006’’, and 
(2) by striking ‘‘$400,000 in the case of taxable 
years beginning after 2002’’ in paragraph (2) and 
inserting ‘‘$500,000 in the case of taxable years be-
ginning after 2006’’. 
(c) INFLATION ADJUSTMENT.—Subparagraph (A) of 
section 179(b)(5) is amended— 
(1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 
(2) by striking ‘‘$100,000 and $400,000’’ and 
inserting ‘‘$125,000 and $500,000’’, and 
(3) by striking ‘‘2002’’ in clause (ii) and insert-
ing ‘‘2006’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006.
173 
SEC. 7213. DETERMINATION OF CREDIT FOR CERTAIN 
TAXES PAID WITH RESPECT TO EMPLOYEE 
CASH TIPS. 
(a) IN GENERAL.—Subparagraph (B) of section 
45B(b)(1) is amended by inserting ‘‘as in effect on Janu-
ary 1, 2007, and’’ before ‘‘determined without regard to’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to tips received for services per-
formed after December 31, 2006. 
SEC. 7214. WAIVER OF INDIVIDUAL AND CORPORATE AL-
TERNATIVE MINIMUM TAX LIMITS ON WORK 
OPPORTUNITY CREDIT AND CREDIT FOR 
TAXES PAID WITH RESPECT TO EMPLOYEE 
CASH TIPS. 
(a) ALLOWANCE AGAINST ALTERNATIVE MINIMUM 
TAX.—Subparagraph (B) of section 38(c)(4) is amended 
by striking ‘‘and’’ at the end of clause (i), by inserting 
a comma at the end of clause (ii), and by adding at the 
end the following new clauses: 
‘‘(iii) the credit determined under sec-
tion 45B, and 
‘‘(iv) the credit determined under sec-
tion 51.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to credits determined under sec-
tions 45B and 51 of the Internal Revenue Code of 1986