147
and Expenses’’ under the heading ‘‘Corporation for Na-
tional and Community Service’’. 
SEC. 6610. (a) Section 1310.12(a) of title 45, Code of 
Federal Regulations, shall take effect 30 days after the date 
of enactment of this Act. 
(b)(1) Not later than 60 days after the National High-
way Traffic Safety Administration of the Department of 
Transportation submits its study on occupant protection on 
Head Start transit vehicles (related to Government Ac-
countability Office report GAO–06–767R), the Secretary of 
Health and Human Services shall review and shall revise 
as necessary the allowable alternate vehicle standards de-
scribed in that part 1310 (or any corresponding similar 
regulation or ruling) relating to allowable alternate vehicles 
used to transport children for a Head Start program. In 
making any such revision, the Secretary shall revise the 
standards to be consistent with the findings contained in 
such study, including making a determination on the ex-
emption of such a vehicle from Federal seat spacing require-
ments, and Federal supporting seating requirements related 
to compartmentalization, if such vehicle meets all other ap-
plicable Federal motor vehicle safety standards, including 
standards for seating systems, occupant crash protection, 
seat belt assemblies, and child restraint anchorage systems
148
consistent with that part 1310 (or any corresponding simi-
lar regulation or ruling). 
(2) Notwithstanding subsection (a), until such date as 
the Secretary of Health and Human Services completes the 
review and any necessary revision specified in paragraph 
(1), the provisions of section 1310.12(a) relating to Federal 
seat spacing requirements, and Federal supporting seating 
requirements related to compartmentalization, for allowable 
alternate vehicles used to transport children for a Head 
Start program, shall not apply to such a vehicle if such 
vehicle meets all other applicable Federal motor vehicle safe-
ty standards, as described in paragraph (1). 
SEC. 6611. (a)(1) Section 3(37)(G) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002(37)(G)) (as amended by section 1106(a) of the Pension 
Protection Act of 2006) is amended—
(A) in clause (i)(II)(aa), by striking ‘‘for each of 
the 3 plan years immediately before the date of the 
enactment of the Pension Protection Act of 2006,’’ 
and inserting ‘‘for each of the 3 plan years imme-
diately preceding the first plan year for which the 
election under this paragraph is effective with respect 
to the plan,’’; 
(B) in clause (ii), by striking ‘‘starting with the 
first plan year ending after the date of the enactment
149
of the Pension Protection Act of 2006’’ and inserting 
‘‘starting with any plan year beginning on or after 
January 1, 1999, and ending before January 1, 2008, 
as designated by the plan in the election made under 
clause (i)(II)’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(vii) For purposes of this Act and the Internal Rev-
enue Code of 1986, a plan making an election under this 
subparagraph shall be treated as maintained pursuant to 
a collective bargaining agreement if a collective bargaining 
agreement, expressly or otherwise, provides for or permits 
employer contributions to the plan by one or more employ-
ers that are signatory to such agreement, or participation 
in the plan by one or more employees of an employer that 
is signatory to such agreement, regardless of whether the 
plan was created, established, or maintained for such em-
ployees by virtue of another document that is not a collec-
tive bargaining agreement.’’. 
(2) Paragraph (6) of section 414(f) of the Internal Rev-
enue Code of 1986 (relating to election with regard to multi-
employer status) (as amended by section 1106(b) of the Pen-
sion Protection Act of 2006) is amended—
(A) in subparagraph (A)(ii)(I), by striking ‘‘for 
each of the 3 plan years immediately before the date
150
of enactment of the Pension Protection Act of 2006,’’ 
and inserting ‘‘for each of the 3 plan years imme-
diately preceding the first plan year for which the 
election under this paragraph is effective with respect 
to the plan,’’; 
(B) in subparagraph (B), by striking ‘‘starting 
with the first plan year ending after the date of the 
enactment of the Pension Protection Act of 2006’’ and 
inserting ‘‘starting with any plan year beginning on 
or after January 1, 1999, and ending before January 
1, 2008, as designated by the plan in the election 
made under subparagraph (A)(ii)’’; and 
(C) by adding at the end the following new sub-
paragraph: 
‘‘(F) MAINTENANCE
UNDER
COLLECTIVE 
BARGAINING AGREEMENT.—For purposes of this 
title and the Employee Retirement Income Secu-
rity Act of 1974, a plan making an election 
under this paragraph shall be treated as main-
tained pursuant to a collective bargaining agree-
ment if a collective bargaining agreement, ex-
pressly or otherwise, provides for or permits em-
ployer contributions to the plan by one or more 
employers that are signatory to such agreement, 
or participation in the plan by one or more em-
151
ployees of an employer that is signatory to such 
agreement, regardless of whether the plan was 
created, established, or maintained for such em-
ployees by virtue of another document that is not 
a collective bargaining agreement.’’. 
(b)(1) Clause (vi) of section 3(37)(G) of the Employee 
Retirement Income Security Act of 1974 (as amended by 
section 1106(a) of the Pension Protection Act of 2006) is 
amended by striking ‘‘if it is a plan—’’ and all that follows 
and inserting the following: ‘‘if it is a plan sponsored by 
an organization which is described in section 501(c)(5) of 
the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code and which was estab-
lished in Chicago, Illinois, on August 12, 1881.’’. 
(2) Subparagraph (E) of section 414(f)(6) of the Inter-
nal Revenue Code of 1986 (as amended by section 1106(b) 
of the Pension Protection Act of 2006) is amended by strik-
ing ‘‘if it is a plan—’’ and all that follows and inserting 
the following: ‘‘if it is a plan sponsored by an organization 
which is described in section 501(c)(5) and exempt from 
tax under section 501(a) and which was established in Chi-
cago, Illinois, on August 12, 1881.’’. 
(c) The amendments made by this section shall take 
effect as if included in section 1106 of the Pension Protec-
tion Act of 2006.
152
SEC. 
6612. 
(a) 
Subclause 
(III) 
of 
section 
420(f)(2)(E)(i) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘subsection (c)(2)(E)(ii)(II)’’ and in-
serting ‘‘subsection (c)(3)(E)(ii)(II)’’. 
(b) Section 420(e)(2)(B) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘funding shortfall’’ and in-
serting ‘‘funding target’’. 
(c) The amendments made by this section shall take 
effect as if included in the provisions of the Pension Protec-
tion Act of 2006 to which they relate. 
SEC. 6613. (a) Subparagraph (A) of section 420(c)(3) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘transfer.’’ and inserting ‘‘transfer or, in the case of 
a transfer which involves a plan maintained by an em-
ployer described in subsection (f)(2)(E)(i)(III), if the plan 
meets the requirements of subsection (f)(2)(D)(i)(II).’’. 
(b) The amendment made by subsection (a) shall apply 
to transfers after the date of the enactment of this Act. 
SEC. 6614. (a) Section 402(i)(1) of the Pension Protec-
tion Act of 2006 is amended by striking ‘‘December 28, 
2007’’ and inserting ‘‘January 1, 2008’’. 
(b) The amendment made by subsection (a) shall take 
effect as if included in section 402 of the Pension Protection 
Act of 2006.
153
SEC. 6615. (a) Section 402(a)(2) of the Pension Pro-
tection Act of 2006 is amended by inserting ‘‘and by using, 
in determining the funding target for each of the 10 plan 
years during such period, an interest rate of 8.25 percent 
(rather than the segment rates calculated on the basis of 
the corporate bond yield curve)’’ after ‘‘such plan year’’. 
(b) The amendment made by this section shall take ef-
fect as if included in the provisions of the Pension Protec-
tion Act of 2006 to which such amendment relates. 
CHAPTER 7
LEGISLATIVE BRANCH 
HOUSE OF REPRESENTATIVES 
PAYMENT TO WIDOWS AND HEIRS OF DECEASED 
MEMBERS OF CONGRESS 
For payment to Gloria W. Norwood, widow of Charles 
W. Norwood, Jr., late a Representative from the State of 
Georgia, $165,200. 
For payment to James McDonald, Jr., widower of 
Juanita Millender-McDonald, late a Representative from 
the State of California, $165,200. 
GENERAL PROVISION—THIS CHAPTER 
SEC. 6701. (a) There is established in the Office of the 
Architect of the Capitol the position of Chief Executive Offi-
cer for Visitor Services (in this section referred to as the
154
‘‘Chief Executive Officer’’), who shall be appointed by the 
Architect of the Capitol. 
(b) The Chief Executive Officer shall be responsible for 
the operation and management of the Capitol Visitor Cen-
ter, subject to the direction of the Architect of the Capitol. 
In carrying out these responsibilities, the Chief Executive 
Officer shall report directly to the Architect of the Capitol 
and shall be subject to policy review and oversight by the 
Committee on Rules and Administration of the Senate and 
the Committee on House Administration of the House of 
Representatives. 
(c) The Chief Executive Officer shall be paid at an an-
nual rate equal to the annual rate of pay for the Chief Oper-
ating Officer of the Office of the Architect of the Capitol. 
(d) This section shall apply with respect to fiscal year 
2007 and each succeeding fiscal year. 
CHAPTER 8
GENERAL PROVISIONS—THIS CHAPTER 
TECHNICAL AMENDMENT 
SEC. 6801. (a) Notwithstanding any other provision 
of law, subsection (c) under the heading ‘‘Assistance for the 
Independent States of the Former Soviet Union’’ in Public 
Law 109–102, shall not apply to funds appropriated by the 
Continuing Appropriations Resolution, 2007 (Public Law
155
109–289, division B) as amended by Public Laws 109–369, 
109–383, and 110–5. 
(b) Section 534(k) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 
2006 (Public Law 109–102) is amended, in the second pro-
viso, by inserting after ‘‘subsection (b) of that section’’ the 
following: ‘‘and the requirement that a majority of the 
members of the board of directors be United States citizens 
provided in subsection (d)(3)(B) of that section’’. 
(c) Subject to section 101(c)(2) of the Continuing Ap-
propriations Resolution, 2007 (division B of Public Law 
109–289, as amended by Public Law 110–5), the amount 
of funds appropriated for ‘‘Foreign Military Financing 
Program’’ pursuant to such Resolution shall be construed 
to be the total of the amount appropriated for such program 
by section 20401 of that Resolution and the amount made 
available for such program by section 591 of the Foreign 
Operations, Export Financing, and Related Programs Ap-
propriations Act, 2006 (Public Law 109–102) which is 
made applicable to the fiscal year 2007 by the provisions 
of such Resolution. 
SEC. 6802. Notwithstanding any provision of title I 
of division B of the Continuing Appropriations Resolution, 
2007 (division B of Public Law 109–289, as amended by 
Public Laws 109–369, 109–383, and 110–5), the dollar
156
amount limitation of the first proviso under the heading, 
‘‘Administration of Foreign Affairs, Diplomatic and Con-
sular Programs’’, in title IV of the Science, State, Justice, 
Commerce, and Related Agencies Appropriations Act, 2006 
(Public Law 109–108; 119 Stat. 2319) shall not apply to 
funds appropriated under such heading for fiscal year 2007. 
CHAPTER 9
DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT 
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to carry out the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992, $6,150,000, to remain available until expended, to 
be derived from the Federal Housing Enterprises Oversight 
Fund and to be subject to the same terms and conditions 
pertaining to funds provided under this heading in Public 
Law 109–115: Provided, That not to exceed the total 
amount provided for these activities for fiscal year 2007 
shall be available from the general fund of the Treasury to 
the extent necessary to incur obligations and make expendi-
tures pending the receipt of collections to the Fund: Pro-
vided further, That the general fund amount shall be re-
duced as collections are received during the fiscal year so
157
as to result in a final appropriation from the general fund 
estimated at not more than $0. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 6901. (a) Hereafter, funds limited or appro-
priated for the Department of Transportation may be obli-
gated or expended to grant authority to a Mexico-domiciled 
motor carrier to operate beyond United States municipali-
ties and commercial zones on the United States-Mexico bor-
der only to the extent that—
(1) granting such authority is first tested as part 
of a pilot program; 
(2) such pilot program complies with the re-
quirements of section 350 of Public Law 107–87 and 
the requirements of section 31315(c) of title 49, 
United States Code, related to pilot programs; and 
(3) simultaneous and comparable authority to 
operate within Mexico is made available to motor car-
riers domiciled in the United States. 
(b) Prior to the initiation of the pilot program de-
scribed in subsection (a) in any fiscal year—
(1) the Inspector General of the Department of 
Transportation shall transmit to Congress and the 
Secretary of Transportation a report verifying com-
pliance with each of the requirements of subsection (a) 
of section 350 of Public Law 107–87, including
158
whether the Secretary of Transportation has estab-
lished sufficient mechanisms to apply Federal motor 
carrier safety laws and regulations to motor carriers 
domiciled in Mexico that are granted authority to op-
erate beyond the United States municipalities and 
commercial zones on the United States-Mexico border 
and to ensure compliance with such laws and regula-
tions; and 
(2) the Secretary of Transportation shall—
(A) take such action as may be necessary to 
address any issues raised in the report of the In-
spector General under subsection (b)(1) and sub-
mit a report to Congress detailing such actions; 
and 
(B) publish in the Federal Register, and 
provide sufficient opportunity for public notice 
and comment—
(i) comprehensive data and informa-
tion on the pre-authorization safety audits 
conducted before and after the date of enact-
ment of this Act of motor carriers domiciled 
in Mexico that are granted authority to op-
erate beyond the United States municipali-
ties and commercial zones on the United 
States-Mexico border;
159
(ii) specific measures to be required to 
protect the health and safety of the public, 
including enforcement measures and pen-
alties for noncompliance; 
(iii) specific measures to be required to 
ensure compliance with section 391.11(b)(2) 
and section 365.501(b) of title 49, Code of 
Federal Regulations; 
(iv) specific standards to be used to 
evaluate the pilot program and compare 
any change in the level of motor carrier 
safety as a result of the pilot program; and 
(v) a list of Federal motor carrier safe-
ty laws and regulations, including the com-
mercial drivers license requirements, for 
which the Secretary of Transportation will 
accept compliance with a corresponding 
Mexican law or regulation as the equivalent 
to compliance with the United States law or 
regulation, including for each law or regu-
lation an analysis as to how the cor-
responding United States and Mexican laws 
and regulations differ. 
(c) During and following the pilot program described 
in subsection (a), the Inspector General of the Department
160
of Transportation shall monitor and review the conduct of 
the pilot program and submit to Congress and the Secretary 
of Transportation an interim report, 6 months after the 
commencement of the pilot program, and a final report, 
within 60 days after the conclusion of the pilot program. 
Such reports shall address whether—
(1) the Secretary of Transportation has estab-
lished sufficient mechanisms to determine whether the 
pilot program is having any adverse effects on motor 
carrier safety; 
(2) Federal and State monitoring and enforce-
ment activities are sufficient to ensure that partici-
pants in the pilot program are in compliance with all 
applicable laws and regulations; and 
(3) the pilot program consists of a representative 
and adequate sample of Mexico-domiciled carriers 
likely to engage in cross-border operations beyond 
United States municipalities and commercial zones 
on the United States-Mexico border. 
(d) In the event that the Secretary of Transportation 
in any fiscal year seeks to grant operating authority for 
the purpose of initiating cross-border operations beyond 
United States municipalities and commercial zones on the 
United States-Mexico border either with Mexico-domiciled 
motor coaches or Mexico-domiciled commercial motor vehi-
161
cles carrying placardable quantities of hazardous materials, 
such activities shall be initiated only after the conclusion 
of a separate pilot program limited to vehicles of the perti-
nent type. Each such separate pilot program shall follow 
the same requirements and processes stipulated under sub-
sections (a) through (c) of this section and shall be planned, 
conducted and evaluated in concert with the Department 
of Homeland Security or its Inspector General, as appro-
priate, so as to address any and all security concerns associ-
ated with such cross-border operations. 
SEC. 6902. Funds provided for the ‘‘National Trans-
portation Safety Board, Salaries and Expenses’’ in section 
21031 of the Continuing Appropriations Resolution, 2007 
(division B of Public Law 109–289, as amended by Public 
Law 110–5) include amounts necessary to make lease pay-
ments due in fiscal year 2007 only, on an obligation in-
curred in 2001 under a capital lease. 
SEC. 6903. Section 21033 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109–
289, as amended by Public Law 110–5) is amended by add-
ing after the second proviso: ‘‘: Provided further, That para-
graph (2) under such heading in Public Law 109–115 (119 
Stat. 2441) shall be funded at $149,300,000, but additional 
section 8 tenant protection rental assistance costs may be 
funded in 2007 by using unobligated balances, notwith-
162
standing the purposes for which such amounts were appro-
priated, including recaptures and carryover, remaining 
from funds appropriated to the Department of Housing and 
Urban Development under this heading, the heading ‘An-
nual Contributions for Assisted Housing’, the heading 
‘Housing Certificate Fund’, and the heading ‘Project-Based 
Rental Assistance’ for fiscal year 2006 and prior fiscal 
years: Provided further, That paragraph (3) under such 
heading in Public Law 109–115 (119 Stat. 2441) shall be 
funded at $47,500,000: Provided further, That paragraph 
(4) under such heading in Public Law 109–115 (119 Stat. 
2441) shall be funded at $5,900,000: Provided further, That 
paragraph (5) under such heading in Public Law 109–115 
(119 Stat. 2441) shall be funded at $1,281,100,000, of which 
$1,251,100,000 shall be allocated for the calendar year 2007 
funding cycle on a pro rata basis to public housing agencies 
based on the amount public housing agencies were eligible 
to receive in calendar year 2006, and of which up to 
$30,000,000 shall be available to the Secretary to allocate 
to public housing agencies that need additional funds to ad-
minister their section 8 programs, with up to $20,000,000 
to be for fees associated with section 8 tenant protection 
rental assistance’’. 
SEC. 6904. Section 232(b) of the Departments of Vet-
erans Affairs and Housing and Urban Development, and
163
Independent Agencies Appropriations Act, 2001 (Public 
Law 106–377) is amended to read as follows: 
‘‘(b) APPLICABILITY.—In the case of any dwelling unit 
that, upon the date of the enactment of this Act, is assisted 
under a housing assistance payment contract under section 
8(o)(13) as in effect before such enactment, or under section 
8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)(2)) as in effect before the enactment of the Quality 
Housing and Work Responsibility Act of 1998 (title V of 
Public Law 105–276), assistance may be renewed or ex-
tended under such section 8(o)(13), as amended by sub-
section (a), provided that the initial contract term and rent 
of such renewed or extended assistance shall be determined 
pursuant to subparagraphs (F) and (H), and subpara-
graphs (C) and (D) of such section shall not apply to such 
extensions or renewals.’’. 
TITLE 
VII—ELIMINATION 
OF 
SCHIP 
SHORTFALL 
AND 
OTHER HEALTH MATTERS 
DEPARTMENT OF HEALTH AND HUMAN 
SERVICES 
CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE 
CHILDREN’S HEALTH INSURANCE FUND 
For an additional amount to provide additional allot-
ments to remaining shortfall States under section
164
2104(h)(4) of the Social Security Act, as inserted by section 
6001, such sums as may be necessary, but not to exceed 
$650,000,000 for fiscal year 2007, to remain available until 
expended. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 7001. (a) ELIMINATION
OF REMAINDER
OF 
SCHIP FUNDING SHORTFALLS, TIERED MATCH, AND 
OTHER LIMITATION ON EXPENDITURES.—Section 2104(h) 
of the Social Security Act (42 U.S.C. 1397dd(h)), as added 
by section 201(a) of the National Institutes of Health Re-
form 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: 
‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE RE-
MAINDER
OF
FISCAL
YEAR
2007
FUNDING
SHORT-
FALLS.—
‘‘(A) IN GENERAL.—From the amounts pro-
vided in advance in appropriations Acts, the 
Secretary shall allot to each remaining shortfall 
State described in subparagraph (B) such 
amount as the Secretary determines will elimi-
165
nate the estimated shortfall described in such 
subparagraph for the State for fiscal year 2007. 
‘‘(B) REMAINING
SHORTFALL
STATE
DE-
SCRIBED.—For purposes of subparagraph (A), a 
remaining shortfall State is a State with a State 
child health plan approved under this title for 
which the Secretary estimates, on the basis of the 
most recent data available to the 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 
‘‘(iii) the amounts, if any, that are to 
be redistributed to the State during fiscal 
year 2007 in accordance with paragraphs 
(1) and (2).’’. 
(b) CONFORMING AMENDMENTS.—Section 2104(h) of 
such Act (42 U.S.C. 1397dd(h)) (as so added), is amend-
ed—
166
(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 
(ii) by inserting ‘‘or allotments’’ after 
‘‘redistributions’’; and 
(B) by striking ‘‘and (3)’’ and inserting 
‘‘(3), and (4)’’. 
SEC. 7002. (a) PROHIBITION.—
(1) LIMITATION ON SECRETARIAL AUTHORITY.—
Notwithstanding any other provision of law, the Sec-
retary of Health and Human Services shall not, prior 
to the date that is 1 year after the date of enactment 
of this Act, take any action (through promulgation of 
regulation, issuance of regulatory guidance, or other 
administrative action) to—
(A) finalize or otherwise implement provi-
sions contained in the proposed rule published 
on January 18, 2007, on pages 2236 through
167
2248 of volume 72, Federal Register (relating to 
parts 433, 447, and 457 of title 42, Code of Fed-
eral Regulations); 
(B) promulgate or implement any rule or 
provisions similar to the provisions described in 
subparagraph (A) pertaining to the Medicaid 
program established under title XIX of the Social 
Security Act or the State Children’s Health In-
surance Program established under title XXI of 
such Act; or 
(C) promulgate or implement any rule or 
provisions restricting payments for graduate 
medical education under the Medicaid program. 
(2) CONTINUATION OF OTHER SECRETARIAL AU-
THORITY.—The Secretary of Health and Human 
Service shall not be prohibited during the period de-
scribed in paragraph (1) from taking any action 
(through promulgation of regulation, issuance of regu-
latory guidance, or other administrative action) to 
enforce a provision of law in effect as of the date of 
enactment of this Act with respect to the Medicaid 
program or the State Children’s Health Insurance 
Program, or to promulgate or implement a new rule 
or provision during such period with respect to such 
programs, other than a rule or provision described in
168
paragraph (1) and subject to the prohibition set forth 
in that paragraph. 
(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT 
PRESCRIPTION PADS UNDER THE MEDICAID PROGRAM.—
(1) IN GENERAL.—Section 1903(i) of the Social 
Security Act (42 U.S.C. 1396b(i)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (21); 
(B) by striking the period at the end of 
paragraph (22) and inserting ‘‘; or’’; and 
(C) by inserting after paragraph (22) the 
following new paragraph: 
‘‘(23) with respect to amounts expended for med-
ical assistance for covered outpatient drugs (as de-
fined in section 1927(k)(2)) for which the prescription 
was executed in written (and non-electronic) form un-
less the prescription was executed on a tamper-resist-
ant pad.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall apply to prescriptions exe-
cuted after September 30, 2007. 
(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIV-
ERS.—
(1) AUTHORITY TO CONTINUE TO OPERATE WAIV-
ERS.—Notwithstanding any other provision of law,
169
any State that is operating a Pharmacy Plus waiver 
described in paragraph (2) which would otherwise ex-
pire on June 30, 2007, may elect to continue to oper-
ate the waiver through December 31, 2009, and if a 
State elects to continue to operate such a waiver, the 
Secretary of Health and Human Services shall ap-
prove the continuation of the waiver through Decem-
ber 31, 2009. 
(2) PHARMACY PLUS WAIVER DESCRIBED.—For 
purposes of paragraph (1), a Pharmacy Plus waiver 
described in this paragraph is a waiver approved by 
the Secretary of Health and Human Services under 
the authority of section 1115 of the Social Security 
Act (42 U.S.C. 1315) that provides coverage for pre-
scription drugs for individuals who have attained age 
65 and whose family income does not exceed 200 per-
cent of the poverty line (as defined in section 
2110(c)(5) of such Act (42 U.S.C. 1397jj(c)(5))). 
TITLE VIII—FAIR MINIMUM 
WAGE AND TAX RELIEF 
Subtitle A—Fair Minimum Wage 
SEC. 8101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Fair Minimum 
Wage Act of 2007’’.
170
SEC. 8102. MINIMUM WAGE. 
(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 
to read as follows: 
‘‘(1) except as otherwise provided in this section, 
not less than—
‘‘(A) $5.85 an hour, beginning on the 60th 
day after the date of enactment of the Fair Min-
imum Wage Act of 2007; 
‘‘(B) $6.55 an hour, beginning 12 months 
after that 60th day; and 
‘‘(C) $7.25 an hour, beginning 24 months 
after that 60th day;’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect 60 days after the date of enact-
ment of this Act. 
SEC. 8103. APPLICABILITY OF MINIMUM WAGE TO AMER-
ICAN SAMOA AND THE COMMONWEALTH OF 
THE NORTHERN MARIANA ISLANDS. 
(a) IN GENERAL.—Section 6 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206) shall apply to American 
Samoa and the Commonwealth of the Northern Mariana 
Islands. 
(b) TRANSITION.—Notwithstanding subsection (a)—
(1) the minimum wage applicable to the Com-
monwealth of the Northern Mariana Islands under
171
section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) shall be—
(A) $3.55 an hour, beginning on the 60th 
day after the date of enactment of this Act; and 
(B) increased by $0.50 an hour (or such 
lesser amount as may be necessary to equal the 
minimum wage under section 6(a)(1) of such 
Act), beginning 1 year after the date of enact-
ment of this Act and each year thereafter until 
the minimum wage applicable to the Common-
wealth of the Northern Mariana Islands under 
this paragraph is equal to the minimum wage 
set forth in such section; and 
(2) the minimum wage applicable to American 
Samoa under section 6(a)(1) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 
be—
(A) the applicable wage rate in effect for 
each industry and classification under section 
697 of title 29, Code of Federal Regulations, on 
the date of enactment of this Act; 
(B) increased by $0.50 an hour, beginning 
on the 60th day after the date of enactment of 
this Act; and
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(C) increased by $0.50 an hour (or such 
lesser amount as may be necessary to equal the 
minimum wage under section 6(a)(1) of such 
Act), beginning 1 year after the date of enact-
ment of this Act and each year thereafter until 
the minimum wage applicable to American 
Samoa under this paragraph is equal to the 
minimum wage set forth in such section. 
(c) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—The Fair Labor Standards 
Act of 1938 is amended—
(A) by striking sections 5 and 8; and 
(B) in section 6(a), by striking paragraph 
(3) and redesignating paragraphs (4) and (5) as 
paragraphs (3) and (4), respectively. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect 60 days after the 
date of enactment of this Act. 
SEC. 8104. STUDY ON PROJECTED IMPACT. 
(a) STUDY.—Beginning on the date that is 60 days 
after the date of enactment of this Act, the Secretary of 
Labor shall, through the Bureau of Labor Statistics, con-
duct a study to—
(1) assess the impact of the wage increases re-
quired by this Act through such date; and
173
(2) project the impact of any further wage in-
crease, 
on living standards and rates of employment in American 
Samoa and the Commonwealth of the Northern Mariana 
Islands. 
(b) REPORT.—Not later than the date that is 8 months 
after the date of enactment of this Act, the Secretary of 
Labor shall transmit to Congress a report on the findings 
of the study required by subsection (a). 
Subtitle B—Small Business Tax 
Incentives 
SEC. 8201. SHORT TITLE; AMENDMENT OF CODE; TABLE OF 
CONTENTS. 
(a) SHORT TITLE.—This subtitle may be cited as the 
‘‘Small Business and Work Opportunity Tax Act of 2007’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this subtitle an amendment 
or repeal is expressed in terms of an amendment to, or re-
peal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of this 
subtitle is as follows:
Sec. 8201. Short title; amendment of Code; table of contents.
174
PART 1—SMALL BUSINESS TAX RELIEF PROVISIONS 
SUBPART A—GENERAL PROVISIONS 
Sec. 8211. Extension and modification of work opportunity tax credit. 
Sec. 8212. Extension and increase of expensing for small business. 
Sec. 8213. Determination of credit for certain taxes paid with respect to employee 
cash tips. 
Sec. 8214. Waiver of individual and corporate alternative minimum tax limits 
on work opportunity credit and credit for taxes paid with re-
spect to employee cash tips. 
Sec. 8215. Family business tax simplification. 
SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES 
Sec. 8221. Extension of increased expensing for qualified section 179 Gulf Oppor-
tunity Zone property. 
Sec. 8222. Extension and expansion of low-income housing credit rules for build-
ings in the GO Zones. 
Sec. 8223. Special tax-exempt bond financing rule for repairs and reconstructions 
of residences in the GO Zones. 
Sec. 8224. GAO study of practices employed by State and local governments in 
allocating and utilizing tax incentives provided pursuant to the 
Gulf Opportunity Zone Act of 2005. 
SUBPART C—SUBCHAPTER S PROVISIONS 
Sec. 8231. Capital gain of S corporation not treated as passive investment in-
come. 
Sec. 8232. Treatment of bank director shares. 
Sec. 8233. Special rule for bank required to change from the reserve method of 
accounting on becoming S corporation. 
Sec. 8234. Treatment of the sale of interest in a qualified subchapter S sub-
sidiary. 
Sec. 8235. Elimination of all earnings and profits attributable to pre-1983 years 
for certain corporations. 
Sec. 8236. Deductibility of interest expense on indebtedness incurred by an elect-
ing small business trust to acquire S corporation stock. 
PART 2—REVENUE PROVISIONS 
Sec. 8241. Increase in age of children whose unearned income is taxed as if par-
ent’s income. 
Sec. 8242. Suspension of certain penalties and interest. 
Sec. 8243. Modification of collection due process procedures for employment tax 
liabilities. 
Sec. 8244. Permanent extension of IRS user fees. 
Sec. 8245. Increase in penalty for bad checks and money orders. 
Sec. 8246. Understatement of taxpayer liability by return preparers. 
Sec. 8247. Penalty for filing erroneous refund claims. 
Sec. 8248. Time for payment of corporate estimated taxes.
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PART 1—SMALL BUSINESS TAX RELIEF 
PROVISIONS 
Subpart A—General Provisions 
SEC. 8211. EXTENSION AND MODIFICATION OF WORK OP-
PORTUNITY TAX CREDIT. 
(a) EXTENSION.—Section 51(c)(4)(B) (relating to ter-
mination) is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘August 31, 2011’’. 
(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED 
COMMUNITY RESIDENTS.—
(1) IN
GENERAL.—Paragraph (5) of section 
51(d) is amended to read as follows: 
‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—
‘‘(A) IN
GENERAL.—The term ‘designated 
community resident’ means any individual who 
is certified by the designated local agency—
‘‘(i) as having attained age 18 but not 
age 40 on the hiring date, and 
‘‘(ii) as having his principal place of 
abode within an empowerment zone, enter-
prise community, renewal community, or 
rural renewal county. 
‘‘(B) INDIVIDUAL MUST CONTINUE TO RE-
SIDE IN ZONE, COMMUNITY, OR COUNTY.—In the 
case of a designated community resident, the 
term ‘qualified wages’ shall not include wages