143 
purposes of the National Voter Registration Act of 
1993 and the Help America Vote Act of 2002. 
(b) DEFINITION.—For purposes of this section, the 
term ‘‘eligible Hurricane Katrina evacuee’’ means an indi-
vidual— 
(1) who certifies to the appropriate State elec-
tion official that the individual is absent from the 
place of residence where the individual is otherwise 
qualified to vote as a result of evacuation from an 
area affected by Hurricane Katrina; and 
(2) who provides the official with an affidavit 
stating that the individual intends to return to such 
place of residence after the election or elections in-
volved. 
(c) REQUIRING DESIGNATED VOTER REGISTRATION 
AGENCIES
TO
NOTIFY
DISPLACED
INDIVIDUALS
OF 
AVAILABILITY OF PROTECTIONS.— Each motor vehicle 
authority in a State and each voter registration agency 
designated in a State under section 7(a) of the National 
Voter Registration Act of 1993 shall take such steps as 
may be necessary to notify individuals to whom services 
are provided of the protections provided by this section 
and of the requirements for obtaining those protections, 
including the requirement to submit an affidavit stating
144 
that the individual intends to return to the place of resi-
dence where the individual is otherwise qualified to vote. 
(d) EFFECTIVE DATE.—This section shall apply with 
respect to elections for Federal office held in calendar 
years 2006 through 2008. 
SEC. 603. GRANTS TO STATES FOR RESTORING AND RE-
PLACING ELECTION ADMINISTRATION SUP-
PLIES, MATERIALS, AND EQUIPMENT DAM-
AGED BY HURRICANE KATRINA. 
(a) AUTHORITY TO MAKE GRANTS.—The Election 
Assistance Commission shall make a grant to each eligible 
State, in such amount as the Commission considers appro-
priate, for purposes of restoring and replacing supplies, 
materials, equipment, and voting records used in elections 
in the State which were damaged as a result of Hurricane 
Katrina. 
(b) ELIGIBILITY.—A State is eligible to receive a 
grant under this section if it submits to the Commission 
(at such time and in such form as the Commission may 
require) a certification that supplies, materials, equip-
ment, and voting records used in the State were damaged 
as a result of Hurricane Katrina. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for fiscal year 2006 for
145 
grants under this section $50,000,000, to remain available 
until expended. 
TITLE VII—FINANCIAL SERVICES 
PROVISIONS 
SEC. 701. HURRICANE KATRINA REGULATORY RELIEF. 
(a) WRITTEN GUIDANCE AND FORBEARANCE POL-
ICY.—Federal financial institution regulatory agencies 
shall— 
(1) provide written guidance for financial insti-
tutions in implementing the voluntary moratorium 
described in subsection (b), and any other permis-
sible forbearance, to ensure that such financial insti-
tutions are not negatively impacted by acting in ac-
cordance with the intention of the Congress; and 
(2) take this forbearance policy into consider-
ation as they examine or audit the financial status 
of regulated financial institutions. 
(b) VOLUNTARY POLICY TO PROVIDE RELIEF FOR 
CONSUMERS AFFECTED BY HURRICANE KATRINA.—It is 
the sense of the Congress that— 
(1) a voluntary moratorium on the payment of 
both principal and interest, by those who are not in 
a position to pay, on unsecured loans and other ex-
tensions of credit made or extended before August 
28, 2005, including small business and consumer
146 
loans, should be recognized by creditors for a 1-year 
period beginning on August 28, 2005, with respect 
to borrowers who as of such date resided in, or 
whose businesses were located within, an area ad-
versely affected by Hurricane Katrina; 
(2) creditors should refrain from negative re-
porting with respect to any loans described in para-
graph (1) to any consumer reporting agency during 
the 1-year period described in such paragraph; 
(3) during the 1-year period beginning on the 
date of the enactment of this Act— 
(A) all operators of automated teller ma-
chines should waive any fees or surcharges for 
use of such machines by consumers who are not 
customers of such operators; and 
(B) all depository institutions and insured 
credit unions should waive any fees or sur-
charges on consumers who are customers of any 
such depository institution or credit union for 
use by the customers of automated teller ma-
chines that are not operated by the depository 
institution or credit union; 
(4) during the 1-year period beginning on the 
date of the enactment of this Act, it is vital that in-
sured depository institutions and insured credit
147 
unions continue to provide financial services to con-
sumers displaced or otherwise adversely affected by 
Hurricane Katrina, which includes the cashing of 
Federal government assistance and benefit checks; 
(5) during the 1-year period beginning on the 
date of the enactment of this Act, depository institu-
tions should voluntarily waive any limitation on the 
availability of funds deposited by consumers in the 
form of insurance claim checks that is otherwise au-
thorized to be imposed under the Expedited Funds 
Availability Act; and 
(6) all creditors should waive any fees for late 
periodic payments on any outstanding balance in 
any credit card account under an open end consumer 
credit plan (as such terms are defined in the Truth 
in Lending Act) when the consumer proffers evi-
dence that the late payment was due to— 
(A) an interruption of mail with respect to 
the payment itself or the receipt by the con-
sumer of a billing statement; or 
(B) the customer’s inability to access funds 
on deposit in any depository institution or cred-
it union.
148 
SEC. 702. FLEXIBILITY IN CAPITAL AND NET WORTH 
STANDARDS FOR SMALL AFFECTED INSTITU-
TIONS. 
(a) IN GENERAL.—Notwithstanding section 38 of the 
Federal Deposit Insurance Act, section 216 of the Federal 
Credit Union Act, or any other provision of Federal law, 
during the 5-year period beginning on the date of enact-
ment of this Act, the appropriate Federal banking agency 
and the National Credit Union Administration may for-
bear from taking any action required under any such sec-
tion or provision, on a case-by-case basis, with respect to 
any undercapitalized insured depository institution or 
undercapitalized insured credit union that is not signifi-
cantly or critically undercapitalized, if such agency or Ad-
ministration determines that— 
(1) the insured depository institution or insured 
credit union maintains its principal place of business 
within a qualified disaster area; 
(2) the total assets of the insured depository in-
stitution or insured credit union as of August 27, 
2005, was less than $500,000,000; 
(3) the insured depository institution or insured 
credit union derives more than 50 percent of its 
total deposits from persons who normally reside 
within, or whose principal place of business is nor-
mally within, a qualified disaster area;
149 
(4) the insured depository institution or insured 
credit union was adequately or well capitalized as of 
August 28, 2005; 
(5) the reduction in the capital or net worth 
category of the insured depository institution or in-
sured credit union is a direct result of Hurricane 
Katrina; and 
(6) forbearance from any such action— 
(A) would facilitate the recovery of the in-
sured depository institution or insured credit 
union from the disaster in accordance with a re-
covery plan or a capital or net worth restoration 
plan established by such depository institution 
or credit union; and 
(B) would be consistent with safe and 
sound practices. 
(b) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) CAPITAL AND NET WORTH CATEGORIES DE-
FINED.—The terms relating to capital categories for 
insured depository institutions have the same mean-
ing as in section 38(b)(1) of the Federal Deposit In-
surance Act and the terms relating to net worth cat-
egories for insured credit unions have the same
150 
meaning as in section 216(c)(1) of the Federal Cred-
it Union Act. 
(2) QUALIFIED
DISASTER
AREA.—The term 
‘‘qualified disaster area’’ means any area within Ala-
bama, Louisiana, or Mississippi in which the Presi-
dent, pursuant to section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act, 
has determined, on or after August 28, 2005, that 
a major disaster exists due to Hurricane Katrina. 
SEC. 703. WAIVER OF FEDERAL RESERVE BOARD FEES FOR 
CERTAIN SERVICES. 
Notwithstanding section 11A of the Federal Reserve 
Act or any other provision of law, during the 1-year period 
beginning on the date of the enactment of this Act, a Fed-
eral reserve bank shall waive or rebate any transaction fee 
for wire transfer services that otherwise would be imposed 
on any insured depository institution or insured credit 
union that— 
(1) as of August 28, 2005, was headquartered 
in a qualified disaster area (as defined in section 
702(b)(2)); and 
(2) as of August 27, 2005, had total assets of 
less than $500,000,000.
151 
SEC. 704. WAIVER OF CERTAIN LIMITATION ON CERTAIN 
BANK INVESTMENTS TO PROMOTE THE PUB-
LIC WELFARE. 
(a) NATIONAL BANKS.—Investments described in the 
first sentence of the paragraph designated ‘‘Eleventh’’ of 
section 5136 of the Revised Statutes of the United States 
(12 U.S.C. 24) that are made by a national bank in a 
qualified disaster area (as defined in section 702(b)(2)) 
shall not be taken into account for purposes of any limita-
tions contained in such paragraph on the aggregate 
amount of such investments. 
(b) STATE BANKS.—Investments described in the 
first sentence of the 23rd undesignated paragraph of sec-
tion 9 of the Federal Reserve Act (12 U.S.C. 338) that 
are made by a State member bank in a qualified disaster 
area (as defined in section 702(b)(2)) shall not be taken 
into account for purposes of any limitations contained in 
such paragraph on the aggregate amount of such invest-
ments. 
SEC. 
705. 
EMERGENCY 
AUTHORITY 
TO 
GUARANTEE 
CHECKS CASHED FOR VICTIMS OF HURRI-
CANE KATRINA. 
(a) FDIC.— 
(1) IN GENERAL.—Subject to subsection (d), 
the Federal Deposit Insurance Corporation shall es-
tablish, in accordance with emergency guidance
152 
issued by the Board of Governors of the Federal Re-
serve System under subsection (d)(1), an emergency 
program under which an insured depository institu-
tion may obtain, subject to subsection (d)(2), a com-
mitment from the Corporation to indemnify the in-
sured depository institution for any loss suffered by 
the institution through cashing a check or share 
draft that— 
(A) is presented for payment by any indi-
vidual who, as of August 28, 2005, resided in 
the State of Alabama, Mississippi, or Louisiana 
in an area in which the President, pursuant to 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, deter-
mined, on or after August 28, 2005, that a 
major disaster exists due to Hurricane Katrina; 
and 
(B) is subsequently uncollectible, 
in an amount not to exceed $2,000 for each such 
check or share draft. 
(2) SOURCE OF FUNDS FOR PAYMENTS.—Any 
payments required to be made by the Corporation 
pursuant to a commitment under paragraph (1) to 
an insured depository institution shall be drawn
153 
from funds available for such purposes under sub-
section (c). 
(b) NCUA.— 
(1) IN GENERAL.—Subject to subsection (d), 
the National Credit Union Administration shall es-
tablish, in accordance with emergency guidance 
issued by the Board under subsection (d)(1), an 
emergency program under which an insured credit 
union may obtain, subject to subsection (d)(2), a 
commitment from the Administration to indemnify 
the insured credit union for any loss suffered by the 
credit union through cashing a share draft or check 
that— 
(A) is presented for payment by any indi-
vidual who, as of August 28, 2005, resided in 
the State of Alabama, Mississippi, or Louisiana 
in an area in which the President, pursuant to 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, deter-
mined, on or after August 28, 2005, that a 
major disaster exists due to Hurricane Katrina; 
and 
(B) is subsequently uncollectible, 
in an amount not to exceed $2,000 for each such 
check or share draft
154 
(2) SOURCE OF FUNDS FOR PAYMENTS.—Any 
payments required to be made by the National Cred-
it Union Administration pursuant to a commitment 
under paragraph (1) to an insured credit union shall 
be drawn from funds available for such purposes 
under subsection (c). 
(3) LIMITED EXTENSION OF CHECK CASHING 
SERVICES.—Notwithstanding any limitation in sec-
tion 107(12) of the Federal Credit Union Act with 
regard to field of membership, an insured credit 
union may cash any check presented for payment by 
any individual described in paragraph (1)(A). 
(c) REIMBURSEMENT
FROM
FEDERAL
RESERVE 
SURPLUSES.—Section 7(b) of the Federal Reserve Act (12 
U.S.C. 289(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) ADDITIONAL TRANSFERS TO COVER CER-
TAIN
RELIEF
EFFORTS
RESULTING
FROM
HURRI-
CANE KATRINA.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), from the surplus funds of the Fed-
eral reserve banks maintained pursuant to sub-
section (a)(2), the Federal reserve banks shall 
transfer to the Board of Governors of the Fed-
eral Reserve System for transfer to the Federal
155 
Deposit Insurance Corporation and the Na-
tional Credit Union Administration, such sums 
as are necessary to meet any payments required 
under subsection (a)(1) or (b)(1). In the event 
that the total amount of requests for indem-
nification received by the Federal Deposit In-
surance Corporation and the National Credit 
Union Administration exceed the maximum 
amount specified under subparagraph (C), the 
sums transferred to the Federal Deposit Insur-
ance Corporation and the National Credit 
Union Administration, respectively, shall be in 
proportion to the amount of payments required 
under subsection (a)(1) and (b)(1), respectively. 
‘‘(B) ALLOCATION BY FEDERAL RESERVE 
BOARD.—Of the total amount required to be 
paid by the Federal reserve banks, the Board of 
Governors of the Federal Reserve System shall 
determine the amount each such bank shall 
pay. 
‘‘(C) 
MAXIMUM
AMOUNT.—The 
total 
amount transferred under subparagraph (A) 
from all Federal reserve banks shall not exceed 
$200,000,000.
156 
‘‘(D) REPLENISHMENT OF SURPLUS FUND 
PROHIBITED.—No Federal reserve bank may 
replenish such bank’s surplus fund by the 
amount of any transfer by such bank under 
subparagraph (A).’’. 
(d) EMERGENCY GUIDANCE AND LIMITATIONS.— 
(1) IN GENERAL.—The Board, after consulting 
the Federal Deposit Insurance Corporation and the 
National Credit Union Administration, shall, upon 
the enactment of this Act, promptly issue appro-
priate guidance— 
(A) to carry out the purposes of this sec-
tion and administer the programs established in 
accordance with this section; 
(B) to reduce the incidence of fraud and 
any other cause of loss to the greatest extent 
possible, consistent with the purpose of this 
Act; 
(C) to require insured depository institu-
tions and insured credit unions to exercise due 
diligence in determining the eligibility of any 
check presented by any individual for indem-
nification under this section, including such 
measures as verification of Social Security num-
157 
bers and other identifying information as the 
Board may determine to be practicable; 
(D) to provide insured depository institu-
tions and insured credit unions with reasonable 
guidance, in light of the emergency cir-
cumstances presented by Hurricane Katrina, so 
as to meet the requirements for indemnification 
under this section, including the sharing of in-
formation on checks that have been presented 
for indemnification; and 
(E) notwithstanding any Federal or State 
law, to provide for the right of the Board of 
Governors of the Federal Reserve System, on 
behalf of the Federal reserve banks and 
through the Federal Deposit Insurance Cor-
poration and the National Credit Union Admin-
istration, to recover from any insured deposi-
tory institution or insured credit union the 
amount of any indemnification paid to such de-
pository institution or credit union with respect 
to any check, to the extent of the amount so 
paid, if the insured depository institution or in-
sured credit union collects on the check. 
(2) COMPLIANCE
WITH
GUIDANCE
CONDI-
TION.—The emergency guidance issued under para-
158 
graph (1) shall require any insured depository insti-
tution or insured credit union seeking a commitment 
under subsection (a)(1) or (b)(1) to demonstrate 
that the institution or credit union is in compliance 
with the guidance in such manner as the Board de-
termines to be appropriate and practicable. 
(3) PER INDIVIDUAL PER INSTITUTION LIMITA-
TION.—No specific insured depository institution or 
insured credit union may be indemnified for losses 
in excess of $2,000 with respect to checks and share 
drafts presented by any one individual. 
(e) DEFINITIONS.—For purposes of this Act, the fol-
lowing definitions shall apply: 
(1) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
(2) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the same meaning as in sec-
tion 101 of the Federal Credit Union Act. 
(3) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the same 
meaning as in section 3 of the Federal Deposit In-
surance Act. 
(f) RULE OF CONSTRUCTION.—No provision of this 
section shall be construed as affecting any right or obliga-
tion of an insured depository institution or insured credit
159 
union to take any action against any person in connection 
with a fraudulent check, a fraudulent negotiation of a 
check, or any other wrongful act. 
(g) EFFECTIVE DATE.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the provisions of this section shall apply to checks or 
share drafts presented to an insured depository in-
stitution or an insured credit union during the pe-
riod beginning on August 28, 2005, and ending Au-
gust 28, 2006. 
(2) LIMITED
EXTENSION.—The period de-
scribed in paragraph (2) may be extended once for 
an additional 180 days if— 
(A) the Board, after consulting with the 
Federal Deposit Insurance Corporation and the 
National Credit Union Administration, deter-
mines that the continuing impact of Hurricane 
Katrina on financial intermediation between 
consumers and financial institutions, on pay-
ment networks, and on other forms of commu-
nication require an extension of the programs 
established under this section in order to con-
tinue to meet the immediate needs of victims of 
the disaster; and
160 
(B) notice of such determination is pub-
lished in the Federal Register at least 5 days 
before the end of the period described in para-
graph (1). 
SEC. 706. TECHNICAL ASSISTANCE FOR MINORITY INSTITU-
TIONS. 
(a) MINORITY DEPOSITORY INSTITUTIONS.— 
(1) IN GENERAL.—The Federal Deposit Insur-
ance Corporation and the Director of the Office of 
Thrift Supervision shall provide such technical as-
sistance to minority financial institutions affected by 
Hurricane Katrina as may be appropriate to pre-
serve the safety and soundness of such financial in-
stitutions, prevent the insolvency of such institu-
tions, and enable the institutions to recovery from 
the adverse financial impact of Hurricane Katrina 
on the customers of the institutions, the assets of 
the institutions, and any real and personal property 
securing such assets. 
(2) MINORITY
INSTITUTION
DEFINED.—For 
purposes of this subsection, the term ‘‘minority fi-
nancial institution’’ has the same meaning as in sec-
tion 308(b) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989. 
(b) MINORITY CREDIT UNIONS.—
161 
(1) IN GENERAL.—The National Credit Union 
Administration shall provide such technical assist-
ance to minority credit unions affected by Hurricane 
Katrina as may be appropriate to preserve the safety 
and soundness of such credit unions, prevent the in-
solvency of such credit unions, and enable the credit 
unions to recovery from the adverse financial impact 
of Hurricane Katrina on the customers of the credit 
unions, the assets of the credit unions, and any real 
and personal property securing such assets. 
(2) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) MINORITY CREDIT UNION.—The term 
‘‘minority credit union’’ means an insured cred-
it union— 
(i) of which a majority of the share 
draft account holders are predominately 
minority; or 
(ii) in the case of community develop-
ment credit union, the community served 
by the credit union is predominantly mi-
nority 
(B) MINORITY.—The term ‘‘minority’’ has 
the same meaning as in section 308(b)(2) of the
162 
Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989. 
SEC. 707. IMPLEMENTING KATRINA DISASTER RELIEF 
THROUGH THE CDFI FUND. 
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts appropriated to the Community Develop-
ment Financial Institutions Fund (hereafter in this sec-
tion referred to as the ‘‘Fund’’) for fiscal year 2006 to 
carry out the purposes of the Community Development 
Banking and Financial Institutions Act of 1994, there are 
authorized to be appropriated to the Fund (which may be 
derived by transfer from funds appropriated for ‘‘Disaster 
Relief’’ in Public Law 109–62), such sums as may be nec-
essary for fiscal year 2006 to carry out such Act for the 
purposes of, and in the manner provided in, this section. 
(b) ASSISTANCE PROVIDED BY THE FUND FOR HUR-
RICANE KATRINA ASSISTANCE.— 
(1) IN GENERAL.—Amounts appropriated pur-
suant to the authorization under subsection (a) shall 
be available to the Fund under the Community De-
velopment Banking and Financial Institutions Act of 
1994 for the purposes of such Act, including tech-
nical and training assistance, awards under the 
Bank Enterprise Act of 1991, equity investments, 
deposits, and other forms of financial assistance to
163 
community development financial institutions, in ac-
cordance with paragraph (2). 
(2) ADJUSTMENTS TO CRITERIA.—In providing 
assistance under paragraph (1), the Community De-
velopment Banking and Financial Institutions Act of 
1994 shall be applied with the following adjust-
ments: 
(A) DESIGNATION OF ASSISTED AREAS.— 
Notwithstanding section 107(b) of the Commu-
nity Development Banking and Financial Insti-
tutions Act of 1994, the Fund shall limit the 
selection of community development financial 
institution applicants for assistance pursuant to 
this section to any financial institution that— 
(i) is located in a Hurricane Katrina 
affected area; or 
(ii) demonstrates to the satisfaction of 
the Fund that the financial institution has 
the ability to provide capital, credit or fi-
nancial services within the Hurricane 
Katrina affected area. 
(B) WAIVER
OF
MATCHING
REQUIRE-
MENTS.—In the case of an applicant with se-
vere constraints on available sources of match-
ing funds, the Fund may reduce or waive the
164 
matching requirements of section 108(e)(1) of 
the Community Development Banking and Fi-
nancial Institutions Act of 1994 for such appli-
cant for purposes of this subsection. 
(C) WAIVER OF LIMITATIONS ON CERTAIN 
FORMS
OF
ASSISTANCE.—The limitation con-
tained in section 113(c) of the Community De-
velopment Banking and Financial Institutions 
Act of 1994 shall not apply to assistance pro-
vided under this subsection in accordance with 
section 113 of such Act. 
(D) APPLICATION OF BANK ENTERPRISE 
ACT OF 1991.—In making assistance under this 
subsection available in the manner provided in 
section 114 of the Community Development 
Banking and Financial Institutions Act of 
1994, the Bank Enterprise Act of 1991 shall be 
applied under section 114(a)(2)— 
(i) 
by 
substituting 
‘‘Hurricane 
Katrina affected area’’, as defined in para-
graph (3), for ‘‘qualified distressed com-
munity’’; and 
(ii) with respect to life line accounts, 
by taking into account only life line ac-
165 
counts offered in an Hurricane Katrina af-
fected area. 
(3) HURRICANE KATRINA AFFECTED AREA DE-
FINED.—For purposes of this section, the term 
‘‘Hurricane Katrina affected area’’ means any coun-
ty (as defined in section 2 of title 1, United States 
Code) that— 
(A) is within an area in which the Presi-
dent, pursuant to section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act, has determined, on or after August 
28, 2005, that a major disaster exists due to 
Hurricane Katrina; and 
(B) has been designated by the Federal 
Emergency Management Agency as an area in 
which public assistance or individual assistance 
is available as a result of Hurricane Katrina. 
TITLE VIII—EXPANDED OPPOR-
TUNITY 
AND 
SMALL 
BUSI-
NESS PROVISIONS 
Subtitle A—Expanded Opportunity 
SEC. 801. REINSTATEMENT OF DAVIS-BACON WAGE RE-
QUIREMENTS. 
Notwithstanding the proclamation by the President 
dated September 8, 2005, or any other provision of law,
166 
the provisions of subchapter IV of chapter 31 of title 40, 
United States Code (and the provisions of all other related 
Acts to the extent they depend upon a determination by 
the Secretary of Labor under section 3142 of such title, 
whether or not the President has the authority to suspend 
the operation of such provisions), shall apply to all con-
tracts to which such provisions would otherwise apply that 
are entered into on or after the date of enactment of this 
Act, to be performed in the counties affected by Hurricane 
Katrina and described in such proclamation. 
SEC. 802. INCREASED PROCUREMENT GOAL FOR CERTAIN 
FEDERAL CONTRACTS FOR RECOVERY FROM 
HURRICANE KATRINA. 
For purposes of section 15(g)(1) of the Small Busi-
ness Act (15 U.S.C. 644 (g)(1)), the Government wide 
goal for participation by small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals in Federal contracts for recovery and recon-
struction activities related to Hurricane Katrina shall be 
15 percent.
167 
SEC. 803. LOCAL PARTICIPATION GOAL FOR PARTICIPA-
TION 
IN 
FEDERAL 
PROCUREMENT 
CON-
TRACTS IN AREAS AFFECTED BY HURRICANE 
KATRINA. 
(a) PROCUREMENT GOAL.—There is hereby estab-
lished a Government-wide goal for procurement contracts 
awarded to local businesses in any area affected by Hurri-
cane Katrina. For fiscal years 2005, 2006, and 2007, the 
goal shall be 30 percent of the total value of all prime 
contract and subcontract awards for each such fiscal year. 
The goal established under this section shall be treated 
and administered in the same manner as goals established 
under section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)). 
(b) LOCAL BUSINESS DEFINED.—In this section, the 
term ‘‘local business’’ means any business owned by a per-
son residing in or incorporated in any area affected by 
Hurricane Katrina. 
SEC. 804. REQUIREMENT FOR HURRICANE RECOVERY-RE-
LATED CONTRACTS TO REQUIRE 40 PERCENT 
OF CONTRACT WORKERS BE LOCAL RESI-
DENTS. 
(a) REQUIREMENT.—Any contract awarded by the 
Federal Government for recovery or reconstruction activi-
ties to be carried out in areas affected by Hurricane 
Katrina shall include a requirement that at least 40 per-
168 
cent of the workers performing the work under the con-
tract be local residents. 
(b) LOCAL RESIDENT.—For purposes of this section, 
a local resident is a person who had a permanent residence 
in the areas affected by Hurricane Katrina before Hurri-
cane Katrina struck. 
SEC. 805. REQUIREMENT FOR HURRICANE RECOVERY-RE-
LATED CONTRACTS TO INCLUDE FINANCIAL 
INCENTIVES FOR CONTRACTORS TO MEET 
GOALS SPECIFIED IN THE CONTRACTS. 
Any contract awarded by the Federal Government for 
recovery or reconstruction activities to be carried out in 
areas affected by Hurricane Katrina shall include a finan-
cial incentive or incentives for the contractor to meet any 
goals specified in the contract, such as goals to award sub-
contracts to small businesses owned and controlled by so-
cially and economically disadvantaged individuals, to local 
businesses, or to subcontractors that will use local resi-
dents to perform work under the subcontract. 
SEC. 806. APPRENTICESHIP AND OTHER REQUIREMENTS 
FOR POST-HURRICANE RECONSTRUCTION. 
(a) APPRENTICESHIP PROGRAMS.—Any hurricane re-
construction contractor shall be required to utilize an ap-
prenticeship program certified under subsection (b) that 
includes, as a part thereof, a pre-apprenticeship program