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in advance in a local newspaper of record and shall
be open to the public.
‘‘(3) RECORDS.—A resource advisory committee
shall maintain records of the meetings of the com-
mittee and make the records available for public in-
spection.
‘‘SEC. 206. USE OF PROJECT FUNDS.
‘‘(a) AGREEMENT REGARDING SCHEDULE AND COST
OF PROJECT.—
‘‘(1) AGREEMENT BETWEEN PARTIES.—The Sec-
retary concerned may carry out a project submitted
by a resource advisory committee under section
203(a) using project funds or other funds described in
section 203(a)(2), if, as soon as practicable after the
issuance of a decision document for the project and
the exhaustion of all administrative appeals and judi-
cial review of the project decision, the Secretary con-
cerned and the resource advisory committee enter into
an agreement addressing, at a minimum, the fol-
lowing:
‘‘(A) The schedule for completing the
project.
‘‘(B) The total cost of the project, including
the level of agency overhead to be assessed
against the project.
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‘‘(C) For a multiyear project, the estimated
cost of the project for each of the fiscal years in
which it will be carried out.
‘‘(D) The remedies for failure of the Sec-
retary concerned to comply with the terms of the
agreement consistent with current Federal law.
‘‘(2) LIMITED
USE
OF
FEDERAL
FUNDS.—The
Secretary concerned may decide, at the sole discretion
of the Secretary concerned, to cover the costs of a por-
tion of an approved project using Federal funds ap-
propriated or otherwise available to the Secretary for
the same purposes as the project.
‘‘(b) TRANSFER OF PROJECT FUNDS.—
‘‘(1) INITIAL TRANSFER REQUIRED.—As soon as
practicable after the agreement is reached under sub-
section (a) with regard to a project to be funded in
whole or in part using project funds, or other funds
described in section 203(a)(2), the Secretary con-
cerned shall transfer to the applicable unit of Na-
tional Forest System land or Bureau of Land Man-
agement District an amount of project funds equal
to—
‘‘(A) in the case of a project to be completed
in a single fiscal year, the total amount specified
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in the agreement to be paid using project funds,
or other funds described in section 203(a)(2); or
‘‘(B) in the case of a multiyear project, the
amount specified in the agreement to be paid
using project funds, or other funds described in
section 203(a)(2) for the first fiscal year.
‘‘(2) CONDITION ON PROJECT COMMENCEMENT.—
The unit of National Forest System land or Bureau
of Land Management District concerned, shall not
commence a project until the project funds, or other
funds described in section 203(a)(2) required to be
transferred under paragraph (1) for the project, have
been made available by the Secretary concerned.
‘‘(3) SUBSEQUENT TRANSFERS FOR MULTIYEAR
PROJECTS.—
‘‘(A) IN GENERAL.—For the second and sub-
sequent fiscal years of a multiyear project to be
funded in whole or in part using project funds,
the unit of National Forest System land or Bu-
reau of Land Management District concerned
shall use the amount of project funds required to
continue the project in that fiscal year according
to the agreement entered into under subsection
(a).
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‘‘(B) SUSPENSION
OF
WORK.—The Sec-
retary concerned shall suspend work on the
project if the project funds required by the agree-
ment in the second and subsequent fiscal years
are not available.
‘‘SEC. 207. AVAILABILITY OF PROJECT FUNDS.
‘‘(a) SUBMISSION OF PROPOSED PROJECTS TO OBLI-
GATE FUNDS.—By September 30 of each fiscal year through
fiscal year 2011, a resource advisory committee shall submit
to the Secretary concerned pursuant to section 203(a)(1) a
sufficient number of project proposals that, if approved,
would result in the obligation of at least the full amount
of the project funds reserved by the participating county
in the preceding fiscal year.
‘‘(b) USE OR TRANSFER OF UNOBLIGATED FUNDS.—
Subject to section 208, if a resource advisory committee fails
to comply with subsection (a) for a fiscal year, any project
funds reserved by the participating county in the preceding
fiscal year and remaining unobligated shall be available for
use as part of the project submissions in the next fiscal year.
‘‘(c) EFFECT OF REJECTION OF PROJECTS.—Subject
to section 208, any project funds reserved by a partici-
pating county in the preceding fiscal year that are unobli-
gated at the end of a fiscal year because the Secretary con-
cerned has rejected one or more proposed projects shall be
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available for use as part of the project submissions in the
next fiscal year.
‘‘(d) EFFECT OF COURT ORDERS.—
‘‘(1) IN GENERAL.—If an approved project under
this Act is enjoined or prohibited by a Federal court,
the Secretary concerned shall return the unobligated
project funds related to the project to the partici-
pating county or counties that reserved the funds.
‘‘(2) EXPENDITURE
OF
FUNDS.—The returned
funds shall be available for the county to expend in
the same manner as the funds reserved by the county
under subparagraph (B) or (C)(i) of section
102(d)(1).
‘‘SEC. 208. TERMINATION OF AUTHORITY.
‘‘(a) IN GENERAL.—The authority to initiate projects
under this title shall terminate on September 30, 2011.
‘‘(b) DEPOSITS IN TREASURY.—Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.
‘‘TITLE III—COUNTY FUNDS
‘‘SEC. 301. DEFINITIONS.
‘‘In this title:
‘‘(1) COUNTY FUNDS.—The term ‘county funds’
means all funds an eligible county elects under section
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102(d) to reserve for expenditure in accordance with
this title.
‘‘(2) PARTICIPATING
COUNTY.—The term ‘par-
ticipating county’ means an eligible county that elects
under section 102(d) to expend a portion of the Fed-
eral funds received under section 102 in accordance
with this title.
‘‘SEC. 302. USE.
‘‘(a) AUTHORIZED USES.—A participating county,
including any applicable agencies of the participating
county, shall use county funds, in accordance with this title,
only—
‘‘(1) to carry out activities under the Firewise
Communities program to provide to homeowners in
fire-sensitive ecosystems education on, and assistance
with implementing, techniques in home siting, home
construction, and home landscaping that can increase
the protection of people and property from wildfires;
‘‘(2) to reimburse the participating county for
search and rescue and other emergency services, in-
cluding firefighting, that are—
‘‘(A) performed on Federal land after the
date on which the use was approved under sub-
section (b);
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‘‘(B) paid for by the participating county;
and
‘‘(3) to develop community wildfire protection
plans in coordination with the appropriate Secretary
concerned.
‘‘(b) PROPOSALS.—A participating county shall use
county funds for a use described in subsection (a) only after
a 45-day public comment period, at the beginning of which
the participating county shall—
‘‘(1) publish in any publications of local record
a proposal that describes the proposed use of the coun-
ty funds; and
‘‘(2) submit the proposal to any resource advi-
sory committee established under section 205 for the
participating county.
‘‘SEC. 303. CERTIFICATION.
‘‘(a) IN GENERAL.—Not later than February 1 of the
year after the year in which any county funds were ex-
pended by a participating county, the appropriate official
of the participating county shall submit to the Secretary
concerned a certification that the county funds expended in
the applicable year have been used for the uses authorized
under section 302(a), including a description of the
amounts expended and the uses for which the amounts were
expended.
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‘‘(b) REVIEW.—The Secretary concerned shall review
the certifications submitted under subsection (a) as the Sec-
retary concerned determines to be appropriate.
‘‘SEC. 304. TERMINATION OF AUTHORITY.
‘‘(a) IN GENERAL.—The authority to initiate projects
under this title terminates on September 30, 2011.
‘‘(b) AVAILABILITY.—Any county funds not obligated
by September 30, 2012, shall be deposited in the Treasury
of the United States.
‘‘TITLE IV—MISCELLANEOUS
PROVISIONS
‘‘SEC. 401. REGULATIONS.
‘‘The Secretary of Agriculture and the Secretary of the
Interior shall jointly issue regulations to carry out the pur-
poses of this Act.
‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this Act
for each of fiscal years 2007 through 2011.
‘‘(b) EMERGENCY DESIGNATION.—Of the amounts au-
thorized to be appropriated under subsection (a) for fiscal
year 2007, $425,000,000 is designated as an emergency re-
quirement pursuant to section 402 of H. Con. Res. 95
(109th Congress).
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‘‘SEC. 403. TREATMENT OF FUNDS AND REVENUES.
‘‘(a) RELATION TO OTHER APPROPRIATIONS.—Funds
made available under section 402 and funds made available
to a Secretary concerned under section 206 shall be in addi-
tion to any other annual appropriations for the Forest
Service and the Bureau of Land Management.
‘‘(b) DEPOSIT OF REVENUES AND OTHER FUNDS.—
All revenues generated from projects pursuant to title II,
including any interest accrued from the revenues, shall be
deposited in the Treasury of the United States.’’.
(b) FOREST RECEIPT PAYMENTS TO ELIGIBLE STATES
AND COUNTIES.—
(1) ACT OF MAY 23, 1908.—The sixth paragraph
under the heading ‘‘FOREST SERVICE’’ in the Act of
May 23, 1908 (16 U.S.C. 500) is amended in the first
sentence by striking ‘‘twenty-five percentum’’ and all
that follows through ‘‘shall be paid’’ and inserting the
following: ‘‘an amount equal to the annual average of
25 percent of all amounts received for the applicable
fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid’’.
(2) WEEKS
LAW.—Section 13 of the Act of
March 1, 1911 (commonly known as the ‘‘Weeks
Law’’) (16 U.S.C. 500) is amended in the first sen-
tence by striking ‘‘twenty-five percentum’’ and all
that follows through ‘‘shall be paid’’ and inserting the
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following: ‘‘an amount equal to the annual average of
25 percent of all amounts received for the applicable
fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid’’.
(c) PAYMENTS IN LIEU OF TAXES.—
(1) IN
GENERAL.—Section 6906 of title 31,
United States Code, is amended to read as follows:
‘‘§ 6906. Funding
‘‘For each of fiscal years 2008 through 2012, such sums
as are authorized under this chapter shall be made available
to the Secretary of the Interior, out of any amounts in the
Treasury not otherwise appropriated, for obligation or ex-
penditure in accordance with this chapter.’’.
(2) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 69 of title 31, United States Code,
is amended by striking the item relating to section
6906 and inserting the following:
‘‘6906. Funding.’’.
(d) INCREASE
IN
INFORMATION
RETURN
PEN-
ALTIES.—
(1) FAILURE
TO
FILE
CORRECT
INFORMATION
RETURNS.—
(A) IN GENERAL.—Section 6721(a)(1) of the
Internal Revenue Code of 1986 is amended—
(i) by striking ‘‘$50’’ and inserting
‘‘$250’’, and
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(ii) by striking ‘‘$250,000’’ and insert-
ing ‘‘$3,000,000’’.
(B) REDUCTION
WHERE
CORRECTION
IN
SPECIFIED PERIOD.—
(i) CORRECTION
WITHIN 30 DAYS.—
Section 
6721(b)(1) 
of 
such 
Code 
is
amended—
(I) by striking ‘‘$15’’ and insert-
ing ‘‘$50’’,
(II) by striking ‘‘$50’’ and insert-
ing ‘‘$250’’, and
(III) by striking ‘‘$75,000’’ and
inserting ‘‘$500,000’’.
(ii) FAILURES CORRECTED ON OR BE-
FORE
AUGUST 1.—Section 6721(b)(2) of
such Code is amended—
(I) by striking ‘‘$30’’ and insert-
ing ‘‘$100’’,
(II) by striking ‘‘$50’’ and insert-
ing ‘‘$250’’, and
(III) by striking ‘‘$150,000’’ and
inserting ‘‘$1,500,000’’.
(C) LOWER LIMITATION FOR PERSONS WITH
GROSS
RECEIPTS
OF
NOT
MORE
THAN
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$5,000,000.—Section 6721(d)(1) of such Code is
amended—
(i) in subparagraph (A)—
(I) by striking ‘‘$100,000’’ and
inserting ‘‘$1,000,000’’, and
(II) by striking ‘‘$250,000’’ and
inserting ‘‘$3,000,000’’,
(ii) in subparagraph (B)—
(I) by striking ‘‘$25,000’’ and in-
serting ‘‘$175,000’’, and
(II) by striking ‘‘$75,000’’ and in-
serting ‘‘$500,000’’, and
(iii) in subparagraph (C)—
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$500,000’’, and
(II) by striking ‘‘$150,000’’ and
inserting ‘‘$1,500,000’’.
(D) PENALTY IN CASE OF INTENTIONAL DIS-
REGARD.—Section 6721(e) of such Code is
amended—
(i) by striking ‘‘$100’’ in paragraph
(2) and inserting ‘‘$500’’,
(ii) by striking ‘‘$250,000’’ in para-
graph (3)(A) and inserting ‘‘$3,000,000’’.
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(2) FAILURE
TO
FURNISH
CORRECT
PAYEE
STATEMENTS.—
(A) IN GENERAL.—Section 6722(a) of the
Internal Revenue Code of 1986 is amended—
(i) by striking ‘‘$50’’ and inserting
‘‘$250’’, and
(ii) by striking ‘‘$100,000’’ and insert-
ing ‘‘$1,000,000’’.
(B) PENALTY IN CASE OF INTENTIONAL DIS-
REGARD.—Section 6722(c) of such Code is
amended—
(i) by striking ‘‘$100’’ in paragraph
(1) and inserting ‘‘$500’’, and
(ii) by striking ‘‘$100,000’’ in para-
graph (2)(A) and inserting ‘‘$1,000,000’’.
(3) FAILURE TO COMPLY WITH OTHER INFORMA-
TION REPORTING REQUIREMENTS.—Section 6723 of
the Internal Revenue Code of 1986 is amended—
(A) by striking ‘‘$50’’ and inserting
‘‘$250’’, and
(B) by striking ‘‘$100,000’’ and inserting
‘‘$1,000,000’’.
(4) EFFECTIVE DATE.—The amendments made
by this section shall apply with respect to informa-
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tion returns required to be filed on or after January
1, 2008.
(e) REPEAL OF SUSPENSION OF CERTAIN PENALTIES
AND INTEREST.—
(1) IN GENERAL.—Section 6404 of the Internal
Revenue Code of 1986 is amended by striking sub-
section (g).
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—Except as provided in
paragraph (2), the amendment made by this sec-
tion shall apply to notices provided by the Sec-
retary of the Treasury, or his delegate after the
date which is 6 months after the date of the en-
actment of this Act.
(B) 
EXCEPTION
FOR
CERTAIN
TAX-
PAYERS.—The amendment made by this section
shall not apply to any taxpayer with respect to
whom a suspension of any interest, penalty, ad-
dition to tax, or other amount is in effect on the
date which is 6 months after the date of the en-
actment of this Act.
(f) PARTICIPANTS
IN GOVERNMENT SECTION 457
PLANS ALLOWED
TO TREAT ELECTIVE DEFERRALS
AS
ROTH CONTRIBUTIONS.—
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(1) IN GENERAL.—Section 402A(e)(1) of the In-
ternal Revenue Code of 1986 (defining applicable re-
tirement plan) is amended by striking ‘‘and’’ at the
end of subparagraph (A), by striking the period at the
end of subparagraph (B) and inserting ‘‘, and’’, and
by adding at the end the following:
‘‘(C) an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible em-
ployer described in section 457(e)(1)(A).’’.
(2) ELECTIVE DEFERRALS.—Section 402A(e)(2)
of the Internal Revenue Code of 1986 (defining elec-
tive deferral) is amended to read as follows:
‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective
deferral’ means—
‘‘(A) any elective deferral described in sub-
paragraph (A) or (C) of section 402(g)(3), and
‘‘(B) any elective deferral of compensation
by an individual under an eligible deferred com-
pensation plan (as defined in section 457(b)) of
an 
eligible 
employer 
described 
in 
section
457(e)(1)(A).’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 2007.
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SEC. 2602. Disaster relief funds from Public Law 109–
234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, ‘‘Na-
tional Park Service—Historic Preservation Fund,’’ for nec-
essary expenses related to the consequences of Hurricane
Katrina and other hurricanes of the 2005 season, may be
used to reconstruct destroyed properties that at the time of
destruction were listed in the National Register of Historic
Places and are otherwise qualified to receive these funds:
Provided, That the State Historic Preservation Officer cer-
tifies that, for the community where that destroyed property
was located, that the property is iconic to or essential to
illustrating that community’s historic identity, that no
other property in that community with the same associative
historic value has survived, and that sufficient historical
documentation exists to ensure an accurate reproduction.
CHAPTER 7
DEPARTMENT OF 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 Pre-
vention, Disease Control, Research and Training’’, to carry
out section 501 of the Federal Mine Safety and Health Act
of 1977 and section 6 of the Mine Improvement and New
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Emergency Response Act of 2006, $13,000,000 for research
to develop mine safety technology, including necessary re-
pairs and improvements to leased laboratories: Provided,
That progress reports on technology development shall be
submitted to the House and Senate Committees on Appro-
priations and the Committee on Health, Education, Labor
and Pensions of the Senate and the Committee on Edu-
cation and Labor of the House of Representatives on a quar-
terly basis: Provided further, That the amount provided
under this heading shall remain available until September
30, 2008.
ADMINISTRATION FOR CHILDREN AND FAMILIES
LOW-INCOME HOME ENERGY ASSISTANCE
For an additional amount for ‘‘Low-Income Home En-
ergy 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)), $320,000,000.
For an additional amount for ‘‘Low-Income Home En-
ergy Assistance’’ under section 2604(e) of the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)),
$320,000,000.
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 respond
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to an influenza pandemic, $820,000,000, to remain avail-
able 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 prod-
ucts purchased with these funds may, at the discretion of
the Secretary of Health and Human Services, be deposited
in the Strategic National Stockpile: Provided further, That
notwithstanding section 496(b) of the Public Health Service
Act, funds may be used for the construction or renovation
of privately owned facilities for the production of pandemic
vaccine and other biologicals, where the Secretary finds
such a contract necessary to secure sufficient supplies of
such vaccines or biologicals: Provided further, That funds
appropriated herein may be transferred to other appropria-
tion accounts of the Department of Health and Human
Services, as determined by the Secretary to be appropriate,
to be used for the purposes specified in this sentence.
COVERED COUNTERMEASURE PROCESS FUND
For carrying out section 319F–4 of the Public Health
Service Act (42 U.S.C. 247d–6e) to compensate individuals
for injuries caused by H5N1 vaccine, in accordance with
the declaration regarding avian influenza viruses issued by
the Secretary of Health and Human Services on January
26, 2007, pursuant to section 319F–3(b) of such Act (42
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HR 1591 EAS
U.S.C. 247d–6d(b)), $50,000,000, to remain available until
expended.
DEPARTMENT OF EDUCATION
HIGHER EDUCATION
For an additional amount under part B of title VII
of the Higher Education Act of 1965 (‘‘HEA’’) for institu-
tions of higher education (as defined in section 102 of that
Act) that are located in an area in which a major disaster
was declared in accordance with section 401 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act
related to hurricanes in the Gulf of Mexico in calendar year
2005, $30,000,000: Provided, That such funds shall be
available to the Secretary of Education only for payments
to help defray the expenses (which may include lost revenue,
reimbursement for expenses already incurred, and construc-
tion) incurred by such institutions of higher education that
were forced to close, relocate or significantly curtail their
activities as a result of damage directly caused by such hur-
ricanes and for payments to enable such institutions to pro-
vide grants to students who attend such institutions for aca-
demic years beginning on or after July 1, 2006: Provided
further, That such payments shall be made in accordance
with criteria established by the Secretary and made pub-
licly available without regard to section 437 of the General
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Education Provisions Act, section 553 of title 5, United
States Code, or part B of title VII of the HEA.
HURRICANE EDUCATION RECOVERY
For carrying out activities authorized by subpart 1 of
part D of title V of the Elementary and Secondary Edu-
cation Act of 1965, $30,000,000, to remain available until
expended, for use by the States of Louisiana, Mississippi,
and Alabama primarily for recruiting, retaining, and com-
pensating new and current teachers, principals, school lead-
ers, and other educators for positions in public elementary
and secondary schools located in an area with respect to
which a major disaster was declared under section 401 of
the Robert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5170) by reason of Hurricane
Katrina or Hurricane Rita, including through such mecha-
nisms as paying salary premiums, performance bonuses,
housing subsidies, and relocation costs, with priority given
to teachers and school leaders who were displaced from, or
lost employment in, Louisiana, Mississippi, or Alabama by
reason of Hurricane Katrina or Hurricane Rita and who
return to and are rehired by such State or local educational
agency; Provided, That funds available under this heading
to such States may also be used for 1 or more of the fol-
lowing activities: (1) to build the capacity of such public
elementary and secondary schools to provide an effective
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education, including the design, adaptation, and implemen-
tation of high-quality formative assessments; (2) the estab-
lishment of partnerships with nonprofit entities with a
demonstrated track record in recruiting and retaining out-
standing teachers and other school leaders; and (3) paid re-
lease time for teachers and principals to identify and rep-
licate successful practices from the fastest-improving and
highest-performing schools: Provided further, That the Sec-
retary of Education shall allocate amounts available under
this heading among such States that submit applications;
that such allocation shall be based on the number of public
elementary and secondary schools in each State that were
closed for 19 days or more during the period beginning on
August 29, 2005, and ending on December 31, 2005, due
to Hurricane Katrina or Hurricane Rita; and that such
States shall in turn allocate funds, on a competitive basis,
to local educational agencies, with priority given first to
such agencies with the highest percentages of public elemen-
tary and secondary schools that are closed as a result of
such hurricanes as of the date of enactment of this Act and
then to such agencies with the highest percentages of public
elementary and secondary schools with a student-teacher
ratio of at least 25 to 1, and with any remaining amounts
to be distributed to such agencies with demonstrated need,
as determined by the State educational agency: Provided
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further, That, in the case of a State that chooses to use
amounts available under this heading for performance bo-
nuses, not later than 60 days after the date of enactment
of this Act and after consultation with, as applicable, local
educational agencies, teachers’ unions, local principals’ or-
ganizations, local parents’ organizations, local business or-
ganizations, and local charter schools organizations, such
State shall establish and implement a rating system for
such performance bonuses based on strong learning gains
for students and growth in student achievement, based on
classroom observation and feedback at least 4 times annu-
ally, conducted by multiple sources (including principals
and master teachers), and evaluated against research-vali-
dated rubrics that use planning, instructional, and learn-
ing environment standards to measure teaching perform-
ance: Provided further, That the amount provided under
this heading is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Con-
gress).
HURRICANE EDUCATION RECOVERY
PROGRAMS TO RESTART SCHOOL OPERATIONS
Funds made available under section 102 of the Hurri-
cane Education Recovery Act (title IV of division B of Pub-
lic Law 109–148) may be used by the States of Louisiana,
Mississippi, Alabama, and Texas, in addition to the uses
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of funds described in section 102(e) for the following costs:
(1) recruiting, retaining and compensating new and cur-
rent teachers, principals, school leaders, other school admin-
istrators, and other educators for positions in reopening
public elementary and secondary schools impacted by Hur-
ricane Katrina or Hurricane Rita, including through such
mechanisms as paying salary premiums, performance bo-
nuses, housing subsidies and relocation costs; and (2) activi-
ties to build the capacity of reopening such public elemen-
tary and secondary schools to provide an effective edu-
cation, including the design, adaptation, and implementa-
tion of high-quality formative assessments; the establish-
ment of partnerships with nonprofit entities with a dem-
onstrated track record in recruiting and retaining out-
standing teachers and other school leaders; and paid release
time for teachers and principals to identify and replicate
successful practices from the fastest-improving and highest-
performing schools: Provided further, That in the case of
a State that chooses to use amounts available under this
heading for performance bonuses, not later than 60 days
after the date of enactment of this Act and after consulta-
tion with, as applicable, local educational agencies, teach-
ers’ unions, local principals’ organizations, local parents’
organizations, local business organizations, and local char-
ter schools organizations, such State shall establish and im-
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plement a rating system that shall be based on strong learn-
ing gains for students and growth in student achievement,
based on classroom observation and feedback at least 4 times
annually, conducted by multiple sources (including prin-
cipals and master teachers), and evaluated against re-
search-validated rubrics that use planning, instructional,
and learning environment standards to measure teaching
performance: Provided further, That the amount provided
under this heading is designated as an emergency require-
ment pursuant to section 402 of H. Con. Res. 95 (109th
Congress).
GENERAL PROVISIONS—THIS CHAPTER
SEC. 2701. Section 105(b) of title IV of division B of
Public Law 109–148 is amended by adding at the end the
following new sentence: ‘‘With respect to the program au-
thorized 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.’’
(INCLUDING RESCISSION)
SEC. 2702. (a) From unexpended balances of the
amounts made available in the 2001 Emergency Supple-
mental Appropriations Act for Recovery from and Response
to Terrorist Attacks on the United States (Public Law 107–
38) for the Employment Training Administration, Train-
ing and Employment Services under the Department of
Labor, $3,589,000 are rescinded.
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(b) For an additional amount for the Centers for Dis-
ease Control and Prevention for carrying out activities
under section 5011(b) of the Emergency Supplemental Ap-
propriations Act to Address Hurricanes in the Gulf of Mex-
ico and Pandemic Influenza, 2006 (Public Law 109–148),
$3,589,000.
SEC. 2703. Notwithstanding section 2002(c) of the So-
cial Security Act (42 U.S.C. 1397a(c)), funds made avail-
able 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
2008.
SEC. 2704. ELIMINATION OF REMAINDER OF SCHIP
FUNDING SHORTFALLS FOR FISCAL YEAR 2007. (a) ELIMI-
NATION OF REMAINDER OF FUNDING SHORTFALLS, TIERED
MATCH, AND OTHER LIMITATION ON EXPENDITURES.—
Section 2104(h) of the Social Security Act (42 U.S.C.
1397dd(h)), as added by section 201(a) of the National In-
stitutes of Health Reform Act of 2006 (Public Law 109–
482), is amended—
(1) in the heading for paragraph (2), by striking
‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’;
and
(2) by striking paragraph (4) and inserting the
following:
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‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE-
MAINDER
OF
FISCAL
YEAR
2007
FUNDING
SHORT-
FALLS.—
‘‘(A) IN
GENERAL.—The Secretary shall
allot to each remaining shortfall State described
in subparagraph (B) such amount as the Sec-
retary determines will eliminate 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 Secretary as of
the date of the enactment of this paragraph, that
the projected federal expenditures under such
plan for the State for fiscal year 2007 will exceed
the sum of—
‘‘(i) the amount of the State’s allot-
ments for each of fiscal years 2005 and
2006 that will not be expended by the end
of fiscal year 2006;
‘‘(ii) the amount of the State’s allot-
ment for fiscal year 2007; and
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‘‘(iii) the amounts, if any, that are to
be redistributed to the State during fiscal
year 2007 in accordance with paragraphs
(1) and (2).
‘‘(C) APPROPRIATION; ALLOTMENT AUTHOR-
ITY.—For the purpose of providing additional
allotments to remaining shortfall States under
this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appro-
priated, such sums as are necessary for fiscal
year 2007.’’.
(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 ‘‘re-
distributed’’; and
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(ii) by inserting ‘‘or allotments’’ after
‘‘redistributions’’; and
(B) by striking ‘‘and (3)’’ and inserting
‘‘(3), and (4)’’.
(c) GENERAL EFFECTIVE DATE; APPLICABILITY.—Ex-
cept as otherwise provided, the amendments made by this
section take effect on the date of enactment of this Act and
apply without fiscal year limitation.
SEC. 2705. Notwithstanding any other provision of
law, the Secretary of Health and Human Services shall not,
prior to the date that is 2 years after the date of enactment
of this Act, take any action to finalize, or otherwise imple-
ment provisions—
(1) contained in the proposed rule published on
January 18, 2007, on pages 2236 through 2258 of
volume 72, Federal Register (relating to parts 433,
447, and 457 of title 42, Code of Federal Regulations)
or any other rule that would affect the Medicaid pro-
gram established under title XIX of the Social Secu-
rity Act or the State Children’s Health Insurance
Program established under title XXI of such Act in a
similar manner; or
(2) restricting payments for graduate medical
education under the Medicaid program.
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(a) MEDICARE CRITICAL ACCESS HOSPITAL DESIGNA-
TION.—Section 405(h) of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (Public Law
108–173; 117 Stat. 2269) is amended by adding at the end
the following new paragraph:
‘‘(3) EXCEPTION.—
‘‘(A) STATE OF MINNESOTA.—The amend-
ment made by paragraph (1) shall not apply to
the certification by the State of Minnesota on or
after 
January 
1, 
2006, 
under 
section
1820(c)(2)(B)(i)(II) of the Social Security Act
(42 U.S.C. 1395i–4(c)(2)(B)(i)(II)) of one hos-
pital that meets the criteria described in sub-
paragraph (B) and is located in Cass County,
Minnesota, as a necessary provider of health care
services to residents in the area of the hospital.
‘‘(B) CRITERIA DESCRIBED FOR HOSPITAL
IN MINNESOTA.—A hospital meets the criteria de-
scribed in this subparagraph if the hospital—
‘‘(i) has been granted an exception by
the State to an otherwise applicable statu-
tory restriction on hospital construction or
licensing prior to the date of enactment of
this subparagraph; and
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‘‘(ii) is located on property which the
State has approved for conveyance to a
county within the State prior to such date
of enactment.
‘‘(C) STATE OF MISSISSIPPI.—The amend-
ment made by paragraph (1) shall not apply to
the certification by the State of Mississippi on or
after 
April 
1, 
2007, 
under 
section
1820(c)(2)(b)(i)(II) of the Social Security Act
(42 U.S.C. 1395i–4(c)(2)(B)(i)(II)) of one hos-
pital that meets the criteria described in sub-
paragraph (D) and is located in Kemper Coun-
ty, Mississippi, as a necessary provider of health
care services to residents in the area of the hos-
pital.
‘‘(D) CRITERIA DESCRIBED FOR HOSPITAL
IN MISSISSIPPI.—A hospital meets the criteria
described in this subparagraph if the hospital—
‘‘(i) meets all other criteria for des-
ignation as a critical access hospital under
section 1820(c)(2)(b) of the Social Security
Act (42 U.S.C. 1395i–4(c)(2)(B));
‘‘(ii) has satisfied the requirement of
the certificate of need laws and regulations
of the State of Mississippi; and
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‘‘(iii) will be constructed on property
that will be conveyed by the Kemper County
Board of Supervisors within the State of
Mississippi.’’.
(b) INCREASE IN BASIC REBATE FOR SINGLE SOURCE
DRUGS AND INNOVATOR MULTIPLE SOURCE DRUGS.—Sec-
tion 1927(c)(1)(B)(i) of the Social Security Act (42 U.S.C.
1396r–8(c)(1)(B)(i)) is amended—
(1) in subclause (IV), by striking ‘‘and’’ after the
semicolon;
(2) in subclause (V)—
(A) by inserting ‘‘and before April 1, 2007,’’
after ‘‘1995,’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
‘‘(VI) after March 31, 2007, is 20
percent.’’.
SEC. 2705. (a) For grant years beginning in 2006–
2007, the Secretary of Health and Human Services may
waive the requirements of, with respect to Louisiana, Mis-
sissippi, Alabama, and Texas and any eligible metropolitan
area in Louisiana, Mississippi, Alabama, and Texas, the
following sections of the Public Health Service Act:
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(1) Section 2612(e)(1) of such Act (42 U.S.C.
300ff–21(b)(1)).
(2) Section 2617(b)(7)(E) of such Act (42 U.S.C.
300ff–27(b)(7)(E)).
(3) Section 2617(d) of such Act (42 U.S.C.
300ff–27(d)), except that such waiver shall apply so
that the matching requirement is reduced to $1 for
each $4 of Federal funds provided under the grant in-
volved.
(b) If the Secretary of Health and Human Services
grants a waiver under subsection (b), the Secretary—
(1) may not prevent Louisiana, Mississippi, Ala-
bama, and Texas or any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas from re-
ceiving or utilizing, or both, funds granted or distrib-
uted, or both, pursuant to title XXVI of the Public
Health Service Act (42 U.S.C. 300ff–11 et seq.) be-
cause of the failure of Louisiana, Mississippi, Ala-
bama, and Texas or any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas to com-
ply with the requirements of the sections listed in
paragraphs (1) through (3) of subsection (a);
(2) may not take action due to such noncompli-
ance; and