HR 5522 RH 
sistance for Afghanistan: Provided, That of the funds 
made available pursuant to this section, $3,000,000 
should be made available for reforestation activities: Pro-
vided further, That funds made available pursuant to the 
previous proviso should be matched, to the maximum ex-
tent possible, with contributions from American and Af-
ghan businesses: Provided further, That of the funds allo-
cated for assistance for Afghanistan from this Act and 
other Acts making appropriations for foreign operations, 
export financing, and related programs for fiscal year 
2007, not less than $50,000,000 should be made available 
to support programs that directly address the needs of Af-
ghan women and girls. 
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT 
SEC. 524. Prior to providing excess Department of 
Defense articles in accordance with section 516(a) of the 
Foreign Assistance Act of 1961, the Department of De-
fense shall notify the Committees on Appropriations to the 
same extent and under the same conditions as are other 
committees pursuant to subsection (f) of that section: Pro-
vided, That before issuing a letter of offer to sell excess 
defense articles under the Arms Export Control Act, the 
Department of Defense shall notify the Committees on 
Appropriations in accordance with the regular notification 
procedures of such Committees if such defense articles are 
significant military equipment (as defined in section 47(9) 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
of the Arms Export Control Act) or are valued (in terms 
of original acquisition cost) at $7,000,000 or more, or if 
notification is required elsewhere in this Act for the use 
of appropriated funds for specific countries that would re-
ceive such excess defense articles: Provided further, That 
such Committees shall also be informed of the original ac-
quisition cost of such defense articles. 
GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS, AND 
MALARIA 
SEC. 525. (a) Notwithstanding any other provision 
of this Act, 25 percent of the funds that are appropriated 
by this Act for a contribution to support the Global Fund 
to Fight AIDS, Tuberculosis and Malaria (the ‘‘Global 
Fund’’) shall be withheld from obligation to the Global 
Fund until the Secretary of State certifies to the Commit-
tees on Appropriations that the Global Fund— 
(1) has clear progress indicators upon which to 
determine the release of incremental disbursements; 
(2) is releasing such incremental disbursements 
only if progress is being made based on those indica-
tors; and 
(3) is providing support and oversight to coun-
try-level entities, such as country coordinating mech-
anisms, principal recipients, and local Fund agents, 
to enable them to fulfill their mandates. 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
(b) The Secretary of State may waive subsection (a) 
if the Secretary determines and reports to the Committees 
on Appropriations that such waiver is important to the 
national interest of the United States. 
HUMAN RIGHTS AND DEMOCRACY 
SEC. 526. (a) Not less than $27,000,000 of the funds 
appropriated by this Act under the heading ‘‘Economic 
Support Fund’’ should be allocated for the Human Rights 
and Democracy Fund: Provided, That up to $1,200,000 
of such funds may be used for the Reagan/Fascell Democ-
racy Fellows program. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 527. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to the enactment of this Act, shall not be made 
available to any country which the President determines— 
(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
DEBT-FOR-DEVELOPMENT 
SEC. 528. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title II of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization. 
SEPARATE ACCOUNTS 
SEC. 529. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.— 
(1) If assistance is furnished to the government 
of a foreign country under chapters 1 and 10 of part 
I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the 
generation of local currencies of that country, the 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
Administrator of the United States Agency for 
International Development shall— 
(A) require that local currencies be depos-
ited in a separate account established by that 
government; 
(B) enter into an agreement with that gov-
ernment which sets forth— 
(i) the amount of the local currencies 
to be generated; and 
(ii) the terms and conditions under 
which the currencies so deposited may be 
utilized, consistent with this section; and 
(C) establish by agreement with that gov-
ernment the responsibilities of the United 
States Agency for International Development 
and that government to monitor and account 
for deposits into and disbursements from the 
separate account. 
(2) USES OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local cur-
rencies deposited in a separate account pursuant to 
subsection (a), or an equivalent amount of local cur-
rencies, shall be used only— 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
(A) to carry out chapter 1 or 10 of part 
I or chapter 4 of part II (as the case may be), 
for such purposes as— 
(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government. 
(3) 
PROGRAMMING
ACCOUNTABILITY.—The 
United States Agency for International Development 
shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant 
to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection 
(a)(2). 
(4) 
TERMINATION
OF
ASSISTANCE
PRO-
GRAMS.—Upon termination of assistance to a coun-
try under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered bal-
ances of funds which remain in a separate account 
established pursuant to subsection (a) shall be dis-
posed of for such purposes as may be agreed to by 
the government of that country and the United 
States Government. 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
(5) REPORTING REQUIREMENT.—The Adminis-
trator of the United States Agency for International 
Development shall report on an annual basis as part 
of the justification documents submitted to the Com-
mittees on Appropriations on the use of local cur-
rencies for the administrative requirements of the 
United States Government as authorized in sub-
section (a)(2)(B), and such report shall include the 
amount of local currency (and United States dollar 
equivalent) used and/or to be used for such purpose 
in each applicable country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) If assistance is made available to the gov-
ernment of a foreign country, under chapter 1 or 10 
of part I or chapter 4 of part II of the Foreign As-
sistance Act of 1961, as cash transfer assistance or 
as nonproject sector assistance, that country shall be 
required to maintain such funds in a separate ac-
count and not commingle them with any other 
funds. 
(2) APPLICABILITY OF OTHER PROVISIONS OF 
LAW.—Such funds may be obligated and expended 
notwithstanding provisions of law which are incon-
sistent with the nature of this assistance including 
provisions which are referenced in the Joint Explan-
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
atory Statement of the Committee of Conference ac-
companying House Joint Resolution 648 (House Re-
port No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or nonproject sec-
tor assistance, the President shall submit a notifica-
tion through the regular notification procedures of 
the Committees on Appropriations, which shall in-
clude a detailed description of how the funds pro-
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
served by the assistance (including, as appropriate, 
a description of the economic policy reforms that will 
be promoted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance 
funds may be exempt from the requirements of sub-
section (b)(1) only through the notification proce-
dures of the Committees on Appropriations. 
ENTERPRISE FUND RESTRICTIONS 
SEC. 530. (a) Prior to the distribution of any assets 
resulting from any liquidation, dissolution, or winding up 
of an Enterprise Fund, in whole or in part, the President 
shall submit to the Committees on Appropriations, in ac-
cordance with the regular notification procedures of the 
Committees on Appropriations, a plan for the distribution 
of the assets of the Enterprise Fund. 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
(b) Funds made available by this Act for Enterprise 
Funds shall be expended at the minimum rate necessary 
to make timely payment for projects and activities. 
FINANCIAL MARKET ASSISTANCE IN TRANSITION 
COUNTRIES 
SEC. 531. Of the funds appropriated in Title II of 
this Act, not less than $40,000,000 should be made avail-
able for building capital markets and financial systems in 
countries in transistion, of which not less than 
$20,000,000 should be designated for not-for-profit orga-
nizations that mobilize volunteers with experience in the 
financial sector. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION 
SEC. 532. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions 
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related 
programs, shall not be construed to prohibit activities au-
thorized by or conducted under the Peace Corps Act, the 
Inter-American Foundation Act or the African Develop-
ment Foundation Act. The agency shall promptly report 
to the Committees on Appropriations whenever it is con-
ducting activities or is proposing to conduct activities in 
a country for which assistance is prohibited. 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
IMPACT ON JOBS IN THE UNITED STATES 
SEC. 533. None of the funds appropriated by this Act 
may be obligated or expended to provide— 
(1) any financial incentive to a business enter-
prise currently located in the United States for the 
purpose of inducing such an enterprise to relocate 
outside the United States if such incentive or in-
ducement is likely to reduce the number of employ-
ees of such business enterprise in the United States 
because United States production is being replaced 
by such enterprise outside the United States; or 
(2) assistance for any program, project, or ac-
tivity that contributes to the violation of internation-
ally recognized workers rights, as defined in section 
507(4) of the Trade Act of 1974, of workers in the 
recipient country, including any designated zone or 
area in that country: Provided, That the application 
of section 507(4)(D) and (E) of such Act should be 
commensurate with the level of development of the 
recipient country and sector, and shall not preclude 
assistance for the informal sector in such country, 
micro and small-scale enterprise, and smallholder 
agriculture. 
SPECIAL AUTHORITIES 
SEC. 534. (a) AFGHANISTAN, IRAQ, PAKISTAN, LEB-
ANON, MONTENEGRO, VICTIMS
OF WAR, DISPLACED 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS
HR 5522 RH 
CHILDREN, AND DISPLACED BURMESE.—Funds appro-
priated by this Act that are made available for assistance 
for Afghanistan may be made available notwithstanding 
section 512 of this Act or any similar provision of law and 
section 660 of the Foreign Assistance Act of 1961, and 
funds appropriated in titles I and II of this Act that are 
made available for Iraq, Lebanon, Montenegro, Pakistan, 
and for victims of war, displaced children, and displaced 
Burmese, and to assist victims of trafficking in persons 
and, subject to the regular notification procedures of the 
Committees on Appropriations, to combat such traf-
ficking, may be made available notwithstanding any other 
provision of law. 
(b) TROPICAL FORESTRY AND BIODIVERSITY CON-
SERVATION ACTIVITIES.—Funds appropriated by this Act 
to carry out the provisions of sections 103 through 106, 
and chapter 4 of part II, of the Foreign Assistance Act 
of 1961 may be used, notwithstanding any other provision 
of law, for the purpose of supporting tropical forestry and 
biodiversity conservation activities and energy programs 
aimed at reducing greenhouse gas emissions: Provided, 
That such assistance shall be subject to sections 116, 
502B, and 620A of the Foreign Assistance Act of 1961. 
(c) PERSONAL SERVICES CONTRACTORS.—Funds ap-
propriated by this Act to carry out chapter 1 of part I, 
VerDate Aug 31 2005 
21:44 Jun 05, 2006
Jkt 049196
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H5522.RH
H5522
rwilkins on PROD1PC63 with BILLS