H. R. 2206—91
(I) by striking ‘‘INCOME TAX RETURN PREPARER’’ 
in the heading and inserting ‘‘TAX RETURN PREPARER’’, 
(II) by striking ‘‘an income tax return preparer’’ 
each place it appears and inserting ‘‘a tax return pre-
parer’’, 
(III) in subsection (c)(2), by striking ‘‘the income 
tax return preparer’’ and inserting ‘‘the tax return 
preparer’’, 
(IV) in subsection (e), by striking ‘‘subtitle A’’ and 
inserting ‘‘this title’’, and 
(V) in subsection (f), by striking ‘‘income tax return 
preparer’’ and inserting ‘‘tax return preparer’’. 
(ii) The item relating to section 6694 in the table 
of sections for part I of subchapter B of chapter 68 is 
amended by striking ‘‘income tax return preparer’’ and 
inserting ‘‘tax return preparer’’. 
(G)(i) Section 6695 is amended—
(I) by striking ‘‘INCOME’’ in the heading, and 
(II) by striking ‘‘an income tax return preparer’’ 
each place it appears and inserting ‘‘a tax return pre-
parer’’. 
(ii) Section 6695(f) is amended—
(I) by striking ‘‘subtitle A’’ and inserting ‘‘this 
title’’, and 
(II) by striking ‘‘the income tax return preparer’’ 
and inserting ‘‘the tax return preparer’’. 
(iii) The item relating to section 6695 in the table 
of sections for part I of subchapter B of chapter 68 is 
amended by striking ‘‘income’’. 
(H) Section 6696(e) is amended by striking ‘‘subtitle 
A’’ each place it appears and inserting ‘‘this title’’. 
(I)(i) Section 7407 is amended—
(I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ 
in the heading and inserting ‘‘TAX
RETURN
PRE-
PARERS’’, 
(II) by striking ‘‘an income tax return preparer’’ 
each place it appears and inserting ‘‘a tax return pre-
parer’’, 
(III) by striking ‘‘income tax preparer’’ both places 
it appears in subsection (a) and inserting ‘‘tax return 
preparer’’, and 
(IV) by striking ‘‘income tax return’’ in subsection 
(a) and inserting ‘‘tax return’’. 
(ii) The item relating to section 7407 in the table 
of sections for subchapter A of chapter 76 is amended 
by striking ‘‘income tax return preparers’’ and inserting 
‘‘tax return preparers’’. 
(J)(i) Section 7427 is amended—
(I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ 
in the heading and inserting ‘‘TAX
RETURN
PRE-
PARERS’’, and 
(II) by striking ‘‘an income tax return preparer’’ 
and inserting ‘‘a tax return preparer’’. 
(ii) The item relating to section 7427 in the table 
of sections for subchapter B of chapter 76 is amended 
to read as follows:
‘‘Sec. 7427. Tax return preparers.’’.
H. R. 2206—92
(b) MODIFICATION OF PENALTY FOR UNDERSTATEMENT OF TAX-
PAYER’S LIABILITY BY TAX RETURN PREPARER.—Subsections (a) and 
(b) of section 6694 are amended to read as follows: 
‘‘(a) UNDERSTATEMENT DUE
TO UNREASONABLE POSITIONS.—
‘‘(1) IN GENERAL.—Any tax return preparer who prepares 
any return or claim for refund with respect to which any 
part of an understatement of liability is due to a position 
described in paragraph (2) shall pay a penalty with respect 
to each such return or claim in an amount equal to the greater 
of—
‘‘(A) $1,000, or 
‘‘(B) 50 percent of the income derived (or to be derived) 
by the tax return preparer with respect to the return 
or claim. 
‘‘(2) UNREASONABLE POSITION.—A position is described in 
this paragraph if—
‘‘(A) the tax return preparer knew (or reasonably 
should have known) of the position, 
‘‘(B) there was not a reasonable belief that the position 
would more likely than not be sustained on its merits, 
and 
‘‘(C)(i) the position was not disclosed as provided in 
section 6662(d)(2)(B)(ii), or 
‘‘(ii) there was no reasonable basis for the position. 
‘‘(3) REASONABLE CAUSE EXCEPTION.—No penalty shall be 
imposed under this subsection if it is shown that there is 
reasonable cause for the understatement and the tax return 
preparer acted in good faith. 
‘‘(b) UNDERSTATEMENT DUE TO WILLFUL OR RECKLESS CON-
DUCT.—
‘‘(1) IN GENERAL.—Any tax return preparer who prepares 
any return or claim for refund with respect to which any 
part of an understatement of liability is due to a conduct 
described in paragraph (2) shall pay a penalty with respect 
to each such return or claim in an amount equal to the greater 
of—
‘‘(A) $5,000, or 
‘‘(B) 50 percent of the income derived (or to be derived) 
by the tax return preparer with respect to the return 
or claim. 
‘‘(2) WILLFUL OR RECKLESS CONDUCT.—Conduct described 
in this paragraph is conduct by the tax return preparer which 
is—
‘‘(A) a willful attempt in any manner to understate 
the liability for tax on the return or claim, or 
‘‘(B) a reckless or intentional disregard of rules or 
regulations. 
‘‘(3) REDUCTION IN PENALTY.—The amount of any penalty 
payable by any person by reason of this subsection for any 
return or claim for refund shall be reduced by the amount 
of the penalty paid by such person by reason of subsection 
(a).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to returns prepared after the date of the enactment 
of this Act.
H. R. 2206—93
SEC. 8247. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS. 
(a) IN GENERAL.—Part I of subchapter B of chapter 68 (relating 
to assessable penalties) is amended by inserting after section 6675 
the following new section: 
‘‘SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT. 
‘‘(a) CIVIL PENALTY.—If a claim for refund or credit with respect 
to income tax (other than a claim for a refund or credit relating 
to the earned income credit under section 32) is made for an 
excessive amount, unless it is shown that the claim for such exces-
sive amount has a reasonable basis, the person making such claim 
shall be liable for a penalty in an amount equal to 20 percent 
of the excessive amount. 
‘‘(b) EXCESSIVE AMOUNT.—For purposes of this section, the term 
‘excessive amount’ means in the case of any person the amount 
by which the amount of the claim for refund or credit for any 
taxable year exceeds the amount of such claim allowable under 
this title for such taxable year. 
‘‘(c) COORDINATION WITH OTHER PENALTIES.—This section shall 
not apply to any portion of the excessive amount of a claim for 
refund or credit which is subject to a penalty imposed under part 
II of subchapter A of chapter 68.’’. 
(b) CONFORMING AMENDMENT.—The table of sections for part 
I of subchapter B of chapter 68 is amended by inserting after 
the item relating to section 6675 the following new item:
‘‘Sec. 6676. Erroneous claim for refund or credit.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any claim filed or submitted after the date of the 
enactment of this Act. 
SEC. 8248. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
Subparagraph (B) of section 401(1) of the Tax Increase Preven-
tion and Reconciliation Act of 2005 is amended by striking ‘‘106.25 
percent’’ and inserting ‘‘114.25 percent’’. 
Subtitle C—Small Business Incentives 
SEC. 8301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business and Work 
Opportunity Act of 2007’’. 
SEC. 
8302. 
ENHANCED 
COMPLIANCE 
ASSISTANCE 
FOR 
SMALL 
BUSINESSES. 
(a) IN GENERAL.—Section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended 
by striking subsection (a) and inserting the following: 
‘‘(a) COMPLIANCE GUIDE.—
‘‘(1) IN GENERAL.—For each rule or group of related rules 
for which an agency is required to prepare a final regulatory 
flexibility analysis under section 605(b) of title 5, United States 
Code, the agency shall publish 1 or more guides to assist 
small entities in complying with the rule and shall entitle 
such publications ‘small entity compliance guides’. 
‘‘(2) PUBLICATION OF GUIDES.—The publication of each guide 
under this subsection shall include—
H. R. 2206—94
‘‘(A) the posting of the guide in an easily identified 
location on the website of the agency; and 
‘‘(B) distribution of the guide to known industry con-
tacts, such as small entities, associations, or industry 
leaders affected by the rule. 
‘‘(3) PUBLICATION
DATE.—An agency shall publish each 
guide (including the posting and distribution of the guide as 
described under paragraph (2))—
‘‘(A) on the same date as the date of publication of 
the final rule (or as soon as possible after that date); 
and 
‘‘(B) not later than the date on which the requirements 
of that rule become effective. 
‘‘(4) COMPLIANCE ACTIONS.—
‘‘(A) IN GENERAL.—Each guide shall explain the actions 
a small entity is required to take to comply with a rule. 
‘‘(B) EXPLANATION.—The explanation under subpara-
graph (A)—
‘‘(i) shall include a description of actions needed 
to meet the requirements of a rule, to enable a small 
entity to know when such requirements are met; and 
‘‘(ii) if determined appropriate by the agency, may 
include a description of possible procedures, such as 
conducting tests, that may assist a small entity in 
meeting such requirements, except that, compliance 
with any procedures described pursuant to this section 
does not establish compliance with the rule, or estab-
lish a presumption or inference of such compliance. 
‘‘(C) 
PROCEDURES.—Procedures 
described 
under 
subparagraph (B)(ii)—
‘‘(i) shall be suggestions to assist small entities; 
and 
‘‘(ii) shall not be additional requirements, or 
diminish requirements, relating to the rule. 
‘‘(5) AGENCY PREPARATION OF GUIDES.—The agency shall, 
in its sole discretion, taking into account the subject matter 
of the rule and the language of relevant statutes, ensure that 
the guide is written using sufficiently plain language likely 
to be understood by affected small entities. Agencies may pre-
pare separate guides covering groups or classes of similarly 
affected small entities and may cooperate with associations 
of small entities to develop and distribute such guides. An 
agency may prepare guides and apply this section with respect 
to a rule or a group of related rules. 
‘‘(6) REPORTING.—Not later than 1 year after the date of 
enactment of the Fair Minimum Wage Act of 2007, and 
annually thereafter, the head of each agency shall submit a 
report to the Committee on Small Business and Entrepreneur-
ship of the Senate, the Committee on Small Business of the 
House of Representatives, and any other committee of relevant 
jurisdiction describing the status of the agency’s compliance 
with paragraphs (1) through (5).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 211(3) 
of the Small Business Regulatory Enforcement Fairness Act of 
1996 (5 U.S.C. 601 note) is amended by inserting ‘‘and entitled’’ 
after ‘‘designated’’.
H. R. 2206—95
SEC. 8303. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Health and Human 
Services (referred to in this section as the ‘‘Secretary’’) shall estab-
lish a program to award grants to States, on a competitive basis, 
to assist States in providing funds to encourage the establishment 
and operation of employer-operated child care programs. 
(b) APPLICATION.—To be eligible to receive a grant under this 
section, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including an assurance 
that the funds required under subsection (e) will be provided. 
(c) AMOUNT AND PERIOD OF GRANT.—The Secretary shall deter-
mine the amount of a grant to a State under this section based 
on the population of the State as compared to the population of 
all States receiving grants under this section. The Secretary shall 
make the grant for a period of 3 years. 
(d) USE OF FUNDS.—
(1) IN GENERAL.—A State shall use amounts provided under 
a grant awarded under this section to provide assistance to 
small businesses (or consortia formed in accordance with para-
graph (3)) located in the State to enable the small businesses 
(or consortia) to establish and operate child care programs. 
Such assistance may include—
(A) technical assistance in the establishment of a child 
care program; 
(B) assistance for the startup costs related to a child 
care program; 
(C) assistance for the training of child care providers; 
(D) scholarships for low-income wage earners; 
(E) the provision of services to care for sick children 
or to provide care to school-aged children; 
(F) the entering into of contracts with local resource 
and referral organizations or local health departments; 
(G) assistance for care for children with disabilities; 
(H) payment of expenses for renovation or operation 
of a child care facility; or 
(I) assistance for any other activity determined appro-
priate by the State. 
(2) APPLICATION.—In order for a small business or consor-
tium to be eligible to receive assistance from a State under 
this section, the small business involved shall prepare and 
submit to the State an application at such time, in such manner, 
and containing such information as the State may require. 
(3) PREFERENCE.—
(A) IN GENERAL.—In providing assistance under this 
section, a State shall give priority to an applicant that 
desires to form a consortium to provide child care in a 
geographic area within the State where such care is not 
generally available or accessible. 
(B) CONSORTIUM.—For purposes of subparagraph (A), 
a consortium shall be made up of 2 or more entities that 
shall include small businesses and that may include large 
businesses, nonprofit agencies or organizations, local 
governments, or other appropriate entities. 
(4) LIMITATIONS.—With respect to grant funds received 
under this section, a State may not provide in excess of 
$500,000 in assistance from such funds to any single applicant.
H. R. 2206—96
(e) MATCHING REQUIREMENT.—To be eligible to receive a grant 
under this section, a State shall provide assurances to the Secretary 
that, with respect to the costs to be incurred by a covered entity 
receiving assistance in carrying out activities under this section, 
the covered entity will make available (directly or through donations 
from public or private entities) non-Federal contributions to such 
costs in an amount equal to—
(1) for the first fiscal year in which the covered entity 
receives such assistance, not less than 50 percent of such costs 
($1 for each $1 of assistance provided to the covered entity 
under the grant); 
(2) for the second fiscal year in which the covered entity 
receives such assistance, not less than 662⁄3 percent of such 
costs ($2 for each $1 of assistance provided to the covered 
entity under the grant); and 
(3) for the third fiscal year in which the covered entity 
receives such assistance, not less than 75 percent of such costs 
($3 for each $1 of assistance provided to the covered entity 
under the grant). 
(f) REQUIREMENTS
OF PROVIDERS.—To be eligible to receive 
assistance under a grant awarded under this section, a child care 
provider—
(1) who receives assistance from a State shall comply with 
all applicable State and local licensing and regulatory require-
ments and all applicable health and safety standards in effect 
in the State; and 
(2) who receives assistance from an Indian tribe or tribal 
organization shall comply with all applicable regulatory stand-
ards. 
(g) STATE-LEVEL ACTIVITIES.—A State may not retain more 
than 3 percent of the amount described in subsection (c) for State 
administration and other State-level activities. 
(h) ADMINISTRATION.—
(1) STATE RESPONSIBILITY.—A State shall have responsi-
bility for administering a grant awarded for the State under 
this section and for monitoring covered entities that receive 
assistance under such grant. 
(2) AUDITS.—A State shall require each covered entity 
receiving assistance under the grant awarded under this section 
to conduct an annual audit with respect to the activities of 
the covered entity. Such audits shall be submitted to the State. 
(3) MISUSE OF FUNDS.—
(A) REPAYMENT.—If the State determines, through an 
audit or otherwise, that a covered entity receiving assist-
ance under a grant awarded under this section has misused 
the assistance, the State shall notify the Secretary of the 
misuse. The Secretary, upon such a notification, may seek 
from such a covered entity the repayment of an amount 
equal to the amount of any such misused assistance plus 
interest. 
(B) APPEALS PROCESS.—The Secretary shall by regula-
tion provide for an appeals process with respect to repay-
ments under this paragraph. 
(i) REPORTING REQUIREMENTS.—
(1) 2-YEAR STUDY.—
(A) IN
GENERAL.—Not later than 2 years after the 
date on which the Secretary first awards grants under
H. R. 2206—97
this section, the Secretary shall conduct a study to deter-
mine—
(i) the capacity of covered entities to meet the 
child care needs of communities within States; 
(ii) the kinds of consortia that are being formed 
with respect to child care at the local level to carry 
out programs funded under this section; and 
(iii) who is using the programs funded under this 
section and the income levels of such individuals. 
(B) REPORT.—Not later than 28 months after the date 
on which the Secretary first awards grants under this 
section, the Secretary shall prepare and submit to the 
appropriate committees of Congress a report on the results 
of the study conducted in accordance with subparagraph 
(A). 
(2) FOUR-YEAR STUDY.—
(A) IN
GENERAL.—Not later than 4 years after the 
date on which the Secretary first awards grants under 
this section, the Secretary shall conduct a study to deter-
mine the number of child care facilities that are funded 
through covered entities that received assistance through 
a grant awarded under this section and that remain in 
operation, and the extent to which such facilities are 
meeting the child care needs of the individuals served 
by such facilities. 
(B) REPORT.—Not later than 52 months after the date 
on which the Secretary first awards grants under this 
section, the Secretary shall prepare and submit to the 
appropriate committees of Congress a report on the results 
of the study conducted in accordance with subparagraph 
(A). 
(j) DEFINITIONS.—In this section: 
(1) COVERED
ENTITY.—The term ‘‘covered entity’’ means 
a small business or a consortium formed in accordance with 
subsection (d)(3). 
(2) INDIAN
COMMUNITY.—The term ‘‘Indian community’’ 
means a community served by an Indian tribe or tribal 
organization. 
(3) INDIAN
TRIBE; 
TRIBAL
ORGANIZATION.—The terms 
‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings 
given the terms in section 658P of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858n). 
(4) SMALL BUSINESS.—The term ‘‘small business’’ means 
an employer who employed an average of at least 2 but not 
more than 50 employees on the business days during the pre-
ceding calendar year. 
(5) STATE.—The term ‘‘State’’ has the meaning given the 
term in section 658P of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858n). 
(k) APPLICATION
TO INDIAN TRIBES
AND TRIBAL ORGANIZA-
TIONS.—In this section: 
(1) IN GENERAL.—Except as provided in subsection (f)(1), 
and in paragraphs (2) and (3), the term ‘‘State’’ includes an 
Indian tribe or tribal organization. 
(2) GEOGRAPHIC REFERENCES.—The term ‘‘State’’ includes 
an Indian community in subsections (c) (the second and third 
place the term appears), (d)(1) (the second place the term
H. R. 2206—98
appears), (d)(3)(A) (the second place the term appears), and 
(i)(1)(A)(i). 
(3) STATE-LEVEL ACTIVITIES.—The term ‘‘State-level activi-
ties’’ includes activities at the tribal level. 
(l) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be appropriated 
to carry out this section, $50,000,000 for the period of fiscal 
years 2008 through 2012. 
(2) STUDIES
AND
ADMINISTRATION.—With respect to the 
total amount appropriated for such period in accordance with 
this subsection, not more than $2,500,000 of that amount may 
be used for expenditures related to conducting studies required 
under, and the administration of, this section. 
(m) TERMINATION
OF
PROGRAM.—The program established 
under subsection (a) shall terminate on September 30, 2012. 
SEC. 8304. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF 
EARNED INCOME CREDIT. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of the Treasury shall report to Congress 
on a study of the benefits, costs, risks, and barriers to workers 
and to businesses (with a special emphasis on small businesses) 
if the advance earned income tax credit program (under section 
3507 of the Internal Revenue Code of 1986) included all recipients 
of the earned income tax credit (under section 32 of such Code) 
and what steps would be necessary to implement such inclusion. 
SEC. 8305. RENEWAL GRANTS FOR WOMEN’S BUSINESS CENTERS. 
(a) IN GENERAL.—Section 29 of the Small Business Act (15 
U.S.C. 656) is amended by adding at the end the following: 
‘‘(m) CONTINUED FUNDING FOR CENTERS.—
‘‘(1) IN GENERAL.—A nonprofit organization described in 
paragraph (2) shall be eligible to receive, subject to paragraph 
(3), a 3-year grant under this subsection. 
‘‘(2) APPLICABILITY.—A nonprofit organization described in 
this paragraph is a nonprofit organization that has received 
funding under subsection (b) or (l). 
‘‘(3) APPLICATION AND APPROVAL CRITERIA.—
‘‘(A) CRITERIA.—Subject to subparagraph (B), the 
Administrator shall develop and publish criteria for the 
consideration and approval of applications by nonprofit 
organizations under this subsection. 
‘‘(B) CONTENTS.—Except as otherwise provided in this 
subsection, the conditions for participation in the grant 
program under this subsection shall be the same as the 
conditions for participation in the program under sub-
section (l), as in effect on the date of enactment of this 
Act. 
‘‘(C) NOTIFICATION.—Not later than 60 days after the 
date of the deadline to submit applications for each fiscal 
year, the Administrator shall approve or deny any applica-
tion under this subsection and notify the applicant for 
each such application. 
‘‘(4) AWARD OF GRANTS.—
‘‘(A) IN GENERAL.—Subject to the availability of appro-
priations, the Administrator shall make a grant for the 
Federal share of the cost of activities described in the
H. R. 2206—99
application to each applicant approved under this sub-
section. 
‘‘(B) AMOUNT.—A grant under this subsection shall 
be for not more than $150,000, for each year of that grant. 
‘‘(C) FEDERAL SHARE.—The Federal share under this 
subsection shall be not more than 50 percent. 
‘‘(D) PRIORITY.—In allocating funds made available for 
grants under this section, the Administrator shall give 
applications under this subsection or subsection (l) priority 
over first-time applications under subsection (b). 
‘‘(5) RENEWAL.—
‘‘(A) IN
GENERAL.—The Administrator may renew a 
grant under this subsection for additional 3-year periods, 
if the nonprofit organization submits an application for 
such renewal at such time, in such manner, and accom-
panied by such information as the Administrator may 
establish. 
‘‘(B) UNLIMITED RENEWALS.—There shall be no limita-
tion on the number of times a grant may be renewed 
under subparagraph (A). 
‘‘(n) PRIVACY REQUIREMENTS.—
‘‘(1) IN GENERAL.—A women’s business center may not dis-
close the name, address, or telephone number of any individual 
or small business concern receiving assistance under this sec-
tion without the consent of such individual or small business 
concern, unless—
‘‘(A) the Administrator is ordered to make such a disclo-
sure by a court in any civil or criminal enforcement action 
initiated by a Federal or State agency; or 
‘‘(B) the Administrator considers such a disclosure to 
be necessary for the purpose of conducting a financial audit 
of a women’s business center, but a disclosure under this 
subparagraph shall be limited to the information necessary 
for such audit. 
‘‘(2) ADMINISTRATION
USE
OF
INFORMATION.—This sub-
section shall not—
‘‘(A) restrict Administration access to program activity 
data; or 
‘‘(B) prevent the Administration from using client 
information (other than the information described in 
subparagraph (A)) to conduct client surveys. 
‘‘(3) REGULATIONS.—The Administrator shall issue regula-
tions to establish standards for requiring disclosures during 
a financial audit under paragraph (1)(B).’’. 
(b) REPEAL.—Section 29(l) of the Small Business Act (15 U.S.C. 
656(l)) is repealed effective October 1 of the first full fiscal year 
after the date of enactment of this Act. 
(c) TRANSITIONAL RULE.—Notwithstanding any other provision 
of law, a grant or cooperative agreement that was awarded under 
subsection (l) of section 29 of the Small Business Act (15 U.S.C. 
656), on or before the day before the date described in subsection 
(b) of this section, shall remain in full force and effect under 
the terms, and for the duration, of such grant or agreement.
H. R. 2206—100
SEC. 8306. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND 
SUPPLIES 
MANUFACTURED 
OUTSIDE 
THE 
UNITED 
STATES. 
Section 2 of the Buy American Act (41 U.S.C. 10a) is amended—
(1) by striking ‘‘Notwithstanding’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—Notwithstanding’’; and 
(2) by adding at the end the following: 
‘‘(b) REPORTS.—
‘‘(1) IN GENERAL.—Not later than 180 days after the end 
of each of fiscal years 2007 through 2011, the head of each 
Federal agency shall submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate and the Com-
mittee on Oversight and Government Reform of the House 
of Representatives a report on the amount of the acquisitions 
made by the agency in that fiscal year of articles, materials, 
or supplies purchased from entities that manufacture the arti-
cles, materials, or supplies outside of the United States. 
‘‘(2) CONTENTS OF REPORT.—The report required by para-
graph (1) shall separately include, for the fiscal year covered 
by such report—
‘‘(A) the dollar value of any articles, materials, or sup-
plies that were manufactured outside the United States; 
‘‘(B) an itemized list of all waivers granted with respect 
to such articles, materials, or supplies under this Act, 
and a citation to the treaty, international agreement, or 
other law under which each waiver was granted; 
‘‘(C) if any articles, materials, or supplies were acquired 
from entities that manufacture articles, materials, or sup-
plies outside the United States, the specific exception under 
this section that was used to purchase such articles, mate-
rials, or supplies; and 
‘‘(D) a summary of—
‘‘(i) the total procurement funds expended on arti-
cles, materials, and supplies manufactured inside the 
United States; and 
‘‘(ii) the total procurement funds expended on arti-
cles, materials, and supplies manufactured outside the 
United States. 
‘‘(3) PUBLIC
AVAILABILITY.—The head of each Federal 
agency submitting a report under paragraph (1) shall make 
the report publicly available to the maximum extent practicable. 
‘‘(4) EXCEPTION FOR INTELLIGENCE COMMUNITY.—This sub-
section shall not apply to acquisitions made by an agency, 
or component thereof, that is an element of the intelligence 
community as specified in, or designated under, section 3(4) 
of the National Security Act of 1947 (50 U.S.C. 401a(4)).’’. 
TITLE IX—AGRICULTURAL ASSISTANCE 
SEC. 9001. CROP DISASTER ASSISTANCE. 
(a) ASSISTANCE AVAILABLE.—There are hereby appropriated to 
the Secretary of Agriculture such sums as are necessary, to remain 
available until expended, to make emergency financial assistance 
available to producers on a farm that incurred qualifying quantity 
or quality losses for the 2005, 2006, or 2007 crop, due to damaging
H. R. 2206—101
weather or any related condition (including losses due to crop 
diseases, insects, and delayed planting), as determined by the Sec-
retary. However, to be eligible for assistance, the crop subject to 
the loss must have been planted before February 28, 2007, or, 
in the case of prevented planting or other total loss, would have 
been planted before February 28, 2007, in the absence of the dam-
aging weather or any related condition. 
(b) ELECTION OF CROP YEAR.—If a producer incurred qualifying 
crop losses in more than one of the 2005, 2006, or 2007 crop 
years, the producer shall elect to receive assistance under this 
section for losses incurred in only one of such crop years. The 
producer may not receive assistance under this section for more 
than one crop year. 
(c) ADMINISTRATION.—
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Secretary of Agriculture shall make assistance available under 
this section in the same manner as provided under section 
815 of the Agriculture, Rural Development, Food and Drug 
Administration and Related Agencies Appropriations Act, 2001 
(Public Law 106–387; 114 Stat. 1549A–55), including using 
the same loss thresholds for quantity and economic losses as 
were used in administering that section, except that the pay-
ment rate shall be 42 percent of the established price, instead 
of 65 percent. 
(2) LOSS THRESHOLDS FOR QUALITY LOSSES.—In the case 
of a payment for quality loss for a crop under subsection (a), 
the loss thresholds for quality loss for the crop shall be deter-
mined under subsection (d). 
(d) QUALITY LOSSES.—
(1) IN
GENERAL.—Subject to paragraph (3), the amount 
of a payment made to producers on a farm for a quality loss 
for a crop under subsection (a) shall be equal to the amount 
obtained by multiplying—
(A) 65 percent of the payment quantity determined 
under paragraph (2); by 
(B) 42 percent of the payment rate determined under 
paragraph (3). 
(2) PAYMENT
QUANTITY.—For the purpose of paragraph 
(1)(A), the payment quantity for quality losses for a crop of 
a commodity on a farm shall equal the lesser of—
(A) the actual production of the crop affected by a 
quality loss of the commodity on the farm; or 
(B) the quantity of expected production of the crop 
affected by a quality loss of the commodity on the farm, 
using the formula used by the Secretary of Agriculture 
to determine quantity losses for the crop of the commodity 
under subsection (a). 
(3) PAYMENT RATE.—For the purpose of paragraph (1)(B) 
and in accordance with paragraphs (5) and (6), the payment 
rate for quality losses for a crop of a commodity on a farm 
shall be equal to the difference between—
(A) the per unit market value that the units of the 
crop affected by the quality loss would have had if the 
crop had not suffered a quality loss; and 
(B) the per unit market value of the units of the 
crop affected by the quality loss.
H. R. 2206—102
(4) ELIGIBILITY.—For producers on a farm to be eligible 
to obtain a payment for a quality loss for a crop under sub-
section (a), the amount obtained by multiplying the per unit 
loss determined under paragraph (1) by the number of units 
affected by the quality loss shall be at least 25 percent of 
the value that all affected production of the crop would have 
had if the crop had not suffered a quality loss. 
(5) MARKETING CONTRACTS.—In the case of any production 
of a commodity that is sold pursuant to one or more marketing 
contracts (regardless of whether the contract is entered into 
by the producers on the farm before or after harvest) and 
for which appropriate documentation exists, the quantity des-
ignated in the contracts shall be eligible for quality loss assist-
ance based on the one or more prices specified in the contracts. 
(6) OTHER PRODUCTION.—For any additional production of 
a commodity for which a marketing contract does not exist 
or for which production continues to be owned by the producer, 
quality losses shall be based on the average local market dis-
counts for reduced quality, as determined by the appropriate 
State committee of the Farm Service Agency. 
(7) QUALITY
ADJUSTMENTS
AND
DISCOUNTS.—The appro-
priate State committee of the Farm Service Agency shall iden-
tify the appropriate quality adjustment and discount factors 
to be considered in carrying out this subsection, including—
(A) the average local discounts actually applied to a 
crop; and 
(B) the discount schedules applied to loans made by 
the Farm Service Agency or crop insurance coverage under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 
(8) ELIGIBLE PRODUCTION.—The Secretary of Agriculture 
shall carry out this subsection in a fair and equitable manner 
for all eligible production, including the production of fruits 
and vegetables, other specialty crops, and field crops. 
(e) PAYMENT LIMITATIONS.—
(1) LIMIT ON AMOUNT OF ASSISTANCE.—Assistance provided 
under this section to a producer for losses to a crop, together 
with the amounts specified in paragraph (2) applicable to the 
same crop, may not exceed 95 percent of what the value of 
the crop would have been in the absence of the losses, as 
estimated by the Secretary of Agriculture. 
(2) OTHER PAYMENTS.—In applying the limitation in para-
graph (1), the Secretary shall include the following: 
(A) Any crop insurance payment made under the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.) or payment 
under section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333) that the producer 
receives for losses to the same crop. 
(B) The value of the crop that was not lost (if any), 
as estimated by the Secretary. 
(f) ELIGIBILITY REQUIREMENTS
AND LIMITATIONS.—The pro-
ducers on a farm shall not be eligible for assistance under this 
section with respect to losses to an insurable commodity or non-
insurable commodity if the producers on the farm—
(1) in the case of an insurable commodity, did not obtain 
a policy or plan of insurance for the insurable commodity under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for 
the crop incurring the losses;
H. R. 2206—103
(2) in the case of a noninsurable commodity, did not file 
the required paperwork, and pay the administrative fee by 
the applicable State filing deadline, for the noninsurable com-
modity under section 196 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7333) for the crop 
incurring the losses; or 
(3) were not in compliance with highly erodible land con-
servation and wetland conservation provisions. 
(g) TIMING.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
of Agriculture shall make payments to producers on a farm 
for a crop under this section not later than 60 days after 
the date the producers on the farm submit to the Secretary 
a completed application for the payments. 
(2) INTEREST.—If the Secretary does not make payments 
to the producers on a farm by the date described in paragraph 
(1), the Secretary shall pay to the producers on a farm interest 
on the payments at a rate equal to the current (as of the 
sign-up deadline established by the Secretary) market yield 
on outstanding, marketable obligations of the United States 
with maturities of 30 years. 
(h) DEFINITIONS.—In this section: 
(1) INSURABLE
COMMODITY.—The term ‘‘insurable com-
modity’’ means an agricultural commodity (excluding livestock) 
for which the producers on a farm are eligible to obtain a 
policy or plan of insurance under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.). 
(2) NONINSURABLE COMMODITY.—The term ‘‘noninsurable 
commodity’’ means a crop for which the producers on a farm 
are eligible to obtain assistance under section 196 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333). 
SEC. 9002. LIVESTOCK ASSISTANCE. 
(a) LIVESTOCK COMPENSATION PROGRAM.—
(1) AVAILABILITY OF ASSISTANCE.—There are hereby appro-
priated to the Secretary of Agriculture such sums as are nec-
essary, to remain available until expended, to carry out the 
livestock compensation program established under subpart B 
of part 1416 of title 7, Code of Federal Regulations, as 
announced by the Secretary on February 12, 2007 (72 Fed. 
Reg. 6443), to provide compensation for livestock losses between 
January 1, 2005 and February 28, 2007, due to a disaster, 
as determined by the Secretary (including losses due to bliz-
zards that started in 2006 and continued into January 2007). 
However, the payment rate for compensation under this sub-
section shall be 61 percent of the payment rate otherwise 
applicable 
under 
such 
program. 
In 
addition, 
section 
1416.102(b)(2)(ii) of title 7, Code of Federal Regulations (72 
Fed. Reg. 6444) shall not apply. 
(2) ELIGIBLE
APPLICANTS.—In carrying out the program 
described in paragraph (1), the Secretary shall provide assist-
ance to any applicant that—
(A) conducts a livestock operation that is located in 
a disaster county with eligible livestock specified in para-
graph (1) of section 1416.102(a) of title 7, Code of Federal 
Regulations (72 Fed. Reg. 6444), an animal described in
H. R. 2206—104
section 10806(a)(1) of the Farm Security and Rural Invest-
ment Act of 2002 (21 U.S.C. 321d(a)(1)), or other animals 
designated by the Secretary as livestock for purposes of 
this subsection; and 
(B) meets the requirements of paragraphs (3) and (4) 
of section 1416.102(a) of title 7, Code of Federal Regula-
tions, and all other eligibility requirements established by 
the Secretary for the program. 
(3) ELECTION OF LOSSES.—
(A) If a producer incurred eligible livestock losses in 
more than one of the 2005, 2006, or 2007 calendar years, 
the producer shall elect to receive payments under this 
subsection for losses incurred in only one of such calendar 
years, and such losses must have been incurred in a county 
declared or designated as a disaster county in that same 
calendar year. 
(B) Producers may elect to receive compensation for 
losses in the calendar year 2007 grazing season that are 
attributable to wildfires occurring during the applicable 
period, as determined by the Secretary. 
(4) MITIGATION.—In determining the eligibility for or 
amount of payments for which a producer is eligible under 
the livestock compensation program, the Secretary shall not 
penalize a producer that takes actions (recognizing disaster 
conditions) that reduce the average number of livestock the 
producer owned for grazing during the production year for 
which assistance is being provided. 
(5) DEFINITIONS.—In this subsection: 
(A) DISASTER
COUNTY.—The term ‘‘disaster county’’ 
means—
(i) a county included in the geographic area covered 
by a natural disaster declaration; and 
(ii) each county contiguous to a county described 
in clause (i). 
(B) NATURAL DISASTER DECLARATION.—The term ‘‘nat-
ural disaster declaration’’ means—
(i) a natural disaster declared by the Secretary 
between January 1, 2005 and February 28, 2007, under 
section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)); 
(ii) a major disaster or emergency designated by 
the President between January 1, 2005 and February 
28, 2007, under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 
or 
(iii) a determination of a Farm Service Agency 
Administrator’s Physical Loss Notice if such notice 
applies to a county included under (ii). 
(b) LIVESTOCK INDEMNITY PAYMENTS.—
(1) AVAILABILITY OF ASSISTANCE.—There are hereby appro-
priated to the Secretary of Agriculture such sums as are nec-
essary, to remain available until expended, to make livestock 
indemnity payments to producers on farms that have incurred 
livestock losses between January 1, 2005 and February 28, 
2007, due to a disaster, as determined by the Secretary 
(including losses due to blizzards that started in 2006 and 
continued into January 2007) in a disaster county. To be eligible