H. R. 6111—69
1395u(b)(6)(F))’’ and inserting ‘‘1842(b)(6) of such Act (42 U.S.C. 
1395u(b)(6))’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of the Deficit 
Reduction Act of 2005 (Public Law 109–171). 
SEC. 206. LIMITED CONTINUOUS OPEN ENROLLMENT OF ORIGINAL 
MEDICARE FEE-FOR-SERVICE ENROLLEES INTO MEDI-
CARE ADVANTAGE NON-PRESCRIPTION DRUG PLANS. 
(a) IN GENERAL.—Section 1851(e)(2) of the Social Security Act 
(42 U.S.C. 1395w–21(e)(2)) is amended by adding at the end the 
following new subparagraph: 
‘‘(E) LIMITED
CONTINUOUS
OPEN
ENROLLMENT
OF 
ORIGINAL FEE-FOR-SERVICE ENROLLEES IN MEDICARE ADVAN-
TAGE NON-PRESCRIPTION DRUG PLANS.—
‘‘(i) IN
GENERAL.—On any date during 2007 or 
2008 on which a Medicare Advantage eligible indi-
vidual is an unenrolled fee-for-service individual (as 
defined in clause (ii)), the individual may elect under 
subsection (a)(1) to enroll in a Medicare Advantage 
plan that is not an MA–PD plan. 
‘‘(ii) UNENROLLED
FEE-FOR-SERVICE
INDIVIDUAL 
DEFINED.—In this subparagraph, the term ‘unenrolled 
fee-for-service individual’ means, with respect to a date, 
a Medicare Advantage eligible individual who—
‘‘(I) is receiving benefits under this title 
through enrollment in the original medicare fee-
for-service program under parts A and B; 
‘‘(II) is not enrolled in an MA plan on such 
date; and 
‘‘(III) as of such date is not otherwise eligible 
to elect to enroll in an MA plan. 
‘‘(iii) LIMITATION OF ONE CHANGE DURING YEAR.—
An individual may exercise the right under clause (i) 
only once during the year. 
‘‘(iv) NO EFFECT ON COVERAGE UNDER A PRESCRIP-
TION DRUG PLAN.—Nothing in this subparagraph shall 
be construed as permitting an individual exercising 
the right under clause (i)—
‘‘(I) who is enrolled in a prescription drug plan 
under part D, to disenroll from such plan or to 
enroll in a different prescription drug plan; or 
‘‘(II) who is not enrolled in a prescription drug 
plan, to enroll in such a plan.’’. 
(b) CONFORMING AMENDMENT.—Section 1860D–1(b)(1)(B)(iii) of 
the Social Security Act (42 U.S.C. 1395w–101(b)(1)(B)(iii)) is 
amended by striking ‘‘subparagraphs (B) and (C)’’ and inserting 
‘‘subparagraphs (B), (C), and (E)’’. 
TITLE III—MEDICARE PROGRAM 
INTEGRITY EFFORTS 
SEC. 301. OFFSETTING ADJUSTMENT IN MEDICARE ADVANTAGE STA-
BILIZATION FUND. 
Section 1858(e)(2)(A)(i) of the Social Security Act (42 U.S.C. 
1395w–27a(e)(2)(A)(i)) 
is 
amended 
by 
striking 
‘‘2007,’’ 
and
H. R. 6111—70
‘‘$10,000,000,000’’ and inserting ‘‘2012,’’ and ‘‘$3,500,000,000’’, 
respectively. 
SEC. 302. EXTENSION AND EXPANSION OF RECOVERY AUDIT CON-
TRACTOR PROGRAM UNDER THE MEDICARE INTEGRITY 
PROGRAM. 
(a) IN GENERAL.—Section 1893 of the Social Security Act (42 
U.S.C. 1395ddd) is amended by adding at the end the following 
new subsection: 
‘‘(h) USE OF RECOVERY AUDIT CONTRACTORS.—
‘‘(1) IN GENERAL.—Under the Program, the Secretary shall 
enter into contracts with recovery audit contractors in accord-
ance with this subsection for the purpose of identifying under-
payments and overpayments and recouping overpayments 
under this title with respect to all services for which payment 
is made under part A or B. Under the contracts—
‘‘(A) payment shall be made to such a contractor only 
from amounts recovered; 
‘‘(B) from such amounts recovered, payment—
‘‘(i) shall be made on a contingent basis for col-
lecting overpayments; and 
‘‘(ii) may be made in such amounts as the Secretary 
may specify for identifying underpayments; and 
‘‘(C) the Secretary shall retain a portion of the amounts 
recovered which shall be available to the program manage-
ment account of the Centers for Medicare & Medicaid Serv-
ices for purposes of activities conducted under the recovery 
audit program under this subsection. 
‘‘(2) DISPOSITION OF REMAINING RECOVERIES.—The amounts 
recovered under such contracts that are not paid to the con-
tractor under paragraph (1) or retained by the Secretary under 
paragraph (1)(C) shall be applied to reduce expenditures under 
parts A and B. 
‘‘(3) NATIONWIDE
COVERAGE.—The Secretary shall enter 
into contracts under paragraph (1) in a manner so as to provide 
for activities in all States under such a contract by not later 
than January 1, 2010. 
‘‘(4) AUDIT AND RECOVERY PERIODS.—Each such contract 
shall provide that audit and recovery activities may be con-
ducted during a fiscal year with respect to payments made 
under part A or B—
‘‘(A) during such fiscal year; and 
‘‘(B) retrospectively (for a period of not more than 
4 fiscal years prior to such fiscal year). 
‘‘(5) WAIVER.—The Secretary shall waive such provisions 
of this title as may be necessary to provide for payment of 
recovery audit contractors under this subsection in accordance 
with paragraph (1). 
‘‘(6) QUALIFICATIONS OF CONTRACTORS.—
‘‘(A) IN GENERAL.—The Secretary may not enter into 
a contract under paragraph (1) with a recovery audit con-
tractor unless the contractor has staff that has the appro-
priate clinical knowledge of, and experience with, the pay-
ment rules and regulations under this title or the contractor 
has, or will contract with, another entity that has such 
knowledgeable and experienced staff.
H. R. 6111—71
‘‘(B) INELIGIBILITY OF CERTAIN CONTRACTORS.—The Sec-
retary may not enter into a contract under paragraph 
(1) with a recovery audit contractor to the extent the con-
tractor is a fiscal intermediary under section 1816, a carrier 
under section 1842, or a medicare administrative contractor 
under section 1874A. 
‘‘(C) PREFERENCE FOR ENTITIES WITH DEMONSTRATED 
PROFICIENCY.—In awarding contracts to recovery audit con-
tractors under paragraph (1), the Secretary shall give pref-
erence to those risk entities that the Secretary determines 
have demonstrated more than 3 years direct management 
experience and a proficiency for cost control or recovery 
audits with private insurers, health care providers, health 
plans, under the Medicaid program under title XIX, or 
under this title. 
‘‘(7) CONSTRUCTION RELATING TO CONDUCT OF INVESTIGA-
TION OF FRAUD.—A recovery of an overpayment to a individual 
or entity by a recovery audit contractor under this subsection 
shall not be construed to prohibit the Secretary or the Attorney 
General from investigating and prosecuting, if appropriate, 
allegations of fraud or abuse arising from such overpayment. 
‘‘(8) ANNUAL REPORT.—The Secretary shall annually submit 
to Congress a report on the use of recovery audit contractors 
under this subsection. Each such report shall include informa-
tion on the performance of such contractors in identifying 
underpayments and overpayments and recouping overpay-
ments, including an evaluation of the comparative performance 
of such contractors and savings to the program under this 
title.’’. 
(b) ACCESS TO COORDINATION OF BENEFITS CONTRACTOR DATA-
BASE.—The Secretary of Health and Human Services shall provide 
for access by recovery audit contractors conducting audit and 
recovery activities under section 1893(h) of the Social Security 
Act, as added by subsection (a), to the database of the Coordination 
of Benefits Contractor of the Centers for Medicare & Medicaid 
Services with respect to the audit and recovery periods described 
in paragraph (4) of such section 1893(h). 
(c) CONFORMING AMENDMENTS TO CURRENT DEMONSTRATION 
PROJECT.—Section 306 of the Medicare Prescription Drug, Improve-
ment, and Modernization Act of 2003 (Public Law 108–173; 117 
Stat. 2256) is amended—
(1) in subsection (b)(2), by striking ‘‘last for not longer 
than 3 years’’ and inserting ‘‘continue until contracts are 
entered into under section 1893(h) of the Social Security Act’’; 
and 
(2) by striking subsection (f). 
SEC. 303. FUNDING FOR THE HEALTH CARE FRAUD AND ABUSE CON-
TROL ACCOUNT. 
(a) DEPARTMENTS OF HEALTH AND HUMAN SERVICES AND JUS-
TICE.—
(1) IN GENERAL.—Section 1817(k)(3)(A)(i) of the Social Secu-
rity Act (42 U.S.C. 1395i(k)(3)(A)(i)) is amended—
(A) in the matter preceding subclause (I), by inserting 
‘‘until expended’’ after ‘‘without further appropriation’’; 
(B) in subclause (II), by striking ‘‘and’’ at the end; 
(C) in subclause (III)—
H. R. 6111—72
(i) by striking ‘‘for each fiscal year after fiscal 
year 2003’’ and inserting ‘‘for each of fiscal years 2004, 
2005, and 2006’’; and 
(ii) by striking the period at the end and inserting 
a semicolon; and 
(D) by adding at the end the following new subclauses: 
‘‘(IV) for each of fiscal years 2007, 2008, 2009, 
and 2010, the limit under this clause for the pre-
ceding fiscal year, increased by the percentage 
increase in the consumer price index for all urban 
consumers (all items; United States city average) 
over the previous year; and 
‘‘(V) for each fiscal year after fiscal year 2010, 
the limit under this clause for fiscal year 2010.’’. 
(2) OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT 
OF HEALTH AND HUMAN SERVICES.—Section 1817(k)(3)(A)(ii) of 
such Act (42 U.S.C. 1395i(k)(3)(A)(ii)) is amended—
(A) in subclause (VI), by striking ‘‘and’’ at the end; 
(B) in subclause (VII)—
(i) by striking ‘‘for each fiscal year after fiscal 
year 2002’’ and inserting ‘‘for each of fiscal years 2003, 
2004, 2005, and 2006’’; and 
(ii) by striking the period at the end and inserting 
a semicolon; and 
(C) by adding at the end the following new subclauses: 
‘‘(VIII) for fiscal year 2007, not less than 
$160,000,000, increased by the percentage increase 
in the consumer price index for all urban con-
sumers (all items; United States city average) over 
the previous year; 
‘‘(IX) for each of fiscal years 2008, 2009, and 
2010, not less than the amount required under 
this clause for the preceding fiscal year, increased 
by the percentage increase in the consumer price 
index for all urban consumers (all items; United 
States city average) over the previous year; and 
‘‘(X) for each fiscal year after fiscal year 2010, 
not less than the amount required under this 
clause for fiscal year 2010.’’. 
(b) FEDERAL BUREAU OF INVESTIGATION.—Section 1817(k)(3)(B) 
of the Social Security Act (42 U.S.C. 1395i(k)(3)(B)) is amended—
(1) in the matter preceding clause (i), by inserting ‘‘until 
expended’’ after ‘‘without further appropriation’’; 
(2) in clause (vi), by striking ‘‘and’’ at the end; 
(3) in clause (vii)—
(A) by striking ‘‘for each fiscal year after fiscal year 
2002’’ and inserting ‘‘for each of fiscal years 2003, 2004, 
2005, and 2006’’; and 
(B) by striking the period at the end and inserting 
a semicolon; and 
(4) by adding at the end the following new clauses: 
‘‘(viii) for each of fiscal years 2007, 2008, 2009, 
and 2010, the amount to be appropriated under this 
subparagraph for the preceding fiscal year, increased 
by the percentage increase in the consumer price index 
for all urban consumers (all items; United States city 
average) over the previous year; and
H. R. 6111—73
‘‘(ix) for each fiscal year after fiscal year 2010, 
the amount to be appropriated under this subpara-
graph for fiscal year 2010.’’. 
SEC. 304. IMPLEMENTATION FUNDING. 
For purposes of implementing the provisions of, and amend-
ments made by, this title and titles I and II of this division, 
other than section 203, the Secretary of Health and Human Services 
shall provide for the transfer, in appropriate part from the Federal 
Hospital Insurance Trust Fund established under section 1817 of 
the Social Security Act (42 U.S.C. 1395i) and the Federal Supple-
mentary Medical Insurance Trust Fund established under section 
1841 of such Act (42 U.S.C. 1395t), of $45,000,000 to the Centers 
for Medicare & Medicaid Services Program Management Account 
for the period of fiscal years 2007 and 2008. 
TITLE IV—MEDICAID AND OTHER 
HEALTH PROVISIONS 
SEC. 401. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA) 
AND ABSTINENCE EDUCATION PROGRAM. 
Activities authorized by sections 510 and 1925 of the Social 
Security Act shall continue through June 30, 2007, in the manner 
authorized 
for 
fiscal 
year 
2006, 
notwithstanding 
section 
1902(e)(1)(A) of such Act, and out of any money in the Treasury 
of the United States not otherwise appropriated, there are hereby 
appropriated such sums as may be necessary for such purpose. 
Grants and payments may be made pursuant to this authority 
through the third quarter of fiscal year 2007 at the level provided 
for such activities through the third quarter of fiscal year 2006. 
SEC. 402. GRANTS FOR RESEARCH ON VACCINE AGAINST VALLEY 
FEVER. 
(a) IN GENERAL.—In supporting research on the development 
of vaccines against human diseases, the Secretary of Health and 
Human Services shall make grants for the purpose of conducting 
research toward the development of a vaccine against coccidioidomy-
cosis (commonly known as Valley Fever). 
(b) SUNSET.—No grant may be made under subsection (a) on 
or after October 1, 2012. The preceding sentence does not have 
any legal effect on payments under grants for which amounts appro-
priated under subsection (c) were obligated prior to such date. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of 
making grants under subsection (a), there are authorized to be 
appropriated $40,000,000 for the period of fiscal years 2007 through 
2012. 
SEC. 403. CHANGE IN THRESHOLD FOR MEDICAID INDIRECT HOLD 
HARMLESS PROVISION OF BROAD-BASED HEALTH CARE 
TAXES. 
Section 1903(w)(4)(C) of the Social Security Act (42 U.S.C. 
1396b(w)(4)(C)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and 
(2) by adding at the end the following:
H. R. 6111—74
‘‘(ii) For purposes of clause (i), a determination of the 
existence of an indirect guarantee shall be made under para-
graph (3)(i) of section 433.68(f) of title 42, Code of Federal 
Regulations, as in effect on November 1, 2006, except that 
for portions of fiscal years beginning on or after January 1, 
2008, and before October 1, 2011, ‘5.5 percent’ shall be sub-
stituted for ‘6 percent’ each place it appears.’’. 
SEC. 404. DSH ALLOTMENTS FOR FISCAL YEAR 2007 FOR TENNESSEE 
AND HAWAII. 
Section 1923(f)(6) of the Social Security Act (42 U.S.C. 1396r–
4(f)(6)) is amended to read as follows: 
‘‘(6) ALLOTMENT ADJUSTMENTS FOR FISCAL YEAR 2007.—
‘‘(A) TENNESSEE.—
‘‘(i) IN GENERAL.—Only with respect to fiscal year 
2007, the DSH allotment for Tennessee for such fiscal 
year, notwithstanding the table set forth in paragraph 
(2) or the terms of the TennCare Demonstration Project 
in effect for the State, shall be the greater of—
‘‘(I) the amount that the Secretary determines 
is equal to the Federal medical assistance percent-
age component attributable to disproportionate 
share hospital payment adjustments for the dem-
onstration year ending in 2006 that is reflected 
in the budget neutrality provision of the TennCare 
Demonstration Project; and 
‘‘(II) $280,000,000. 
‘‘(ii) LIMITATION ON AMOUNT OF PAYMENT ADJUST-
MENTS
ELIGIBLE
FOR
FEDERAL
FINANCIAL
PARTICIPA-
TION.—Payment under section 1903(a) shall not be 
made to Tennessee with respect to the aggregate 
amount of any payment adjustments made under this 
section for hospitals in the State for fiscal year 2007 
that is in excess of 30 percent of the DSH allotment 
for the State for such fiscal year determined pursuant 
to clause (i). 
‘‘(iii) STATE
PLAN
AMENDMENT.—The Secretary 
shall permit Tennessee to submit an amendment to 
its State plan under this title that describes the meth-
odology to be used by the State to identify and make 
payments to disproportionate share hospitals, including 
children’s hospitals and institutions for mental diseases 
or other mental health facilities. The Secretary may 
not approve such plan amendment unless the method-
ology described in the amendment is consistent with 
the requirements under this section for making pay-
ment adjustments to disproportionate share hospitals. 
For purposes of demonstrating budget neutrality under 
the TennCare Demonstration Project, payment adjust-
ments made pursuant to a State plan amendment 
approved in accordance with this subparagraph shall 
be considered expenditures under such project. 
‘‘(iv) OFFSET
OF
FEDERAL
SHARE
OF
PAYMENT 
ADJUSTMENTS FOR FISCAL YEAR 2007 AGAINST ESSENTIAL 
ACCESS
HOSPITAL
SUPPLEMENTAL
POOL
PAYMENTS 
UNDER THE TENNCARE DEMONSTRATION PROJECT.—
H. R. 6111—75
‘‘(I) The total amount of Essential Access Hos-
pital supplemental pool payments that may be 
made under the TennCare Demonstration Project 
for fiscal year 2007 shall be reduced on a dollar 
for dollar basis by the amount of any payments 
made under section 1903(a) to Tennessee with 
respect to payment adjustments made under this 
section for hospitals in the State for such fiscal 
year. 
‘‘(II) The sum of the total amount of payments 
made under section 1903(a) to Tennessee with 
respect to payment adjustments made under this 
section for hospitals in the State for fiscal year 
2007 and the total amount of Essential Access 
Hospital supplemental pool payments made under 
the TennCare Demonstration Project for such fiscal 
year shall not exceed the State’s DSH allotment 
for such fiscal year established under clause (i). 
‘‘(B) HAWAII.—
‘‘(i) IN GENERAL.—Only with respect to fiscal year 
2007, the DSH allotment for Hawaii for such fiscal 
year, notwithstanding the table set forth in paragraph 
(2), shall be $10,000,000. 
‘‘(ii) STATE PLAN AMENDMENT.—The Secretary shall 
permit Hawaii to submit an amendment to its State 
plan under this title that describes the methodology 
to be used by the State to identify and make payments 
to disproportionate share hospitals, including children’s 
hospitals and institutions for mental diseases or other 
mental health facilities. The Secretary may not approve 
such 
plan 
amendment 
unless 
the 
methodology 
described in the amendment is consistent with the 
requirements under this section for making payment 
adjustments to disproportionate share hospitals.’’. 
SEC. 405. CERTAIN MEDICAID DRA TECHNICAL CORRECTIONS. 
(a) TECHNICAL CORRECTIONS RELATING TO STATE OPTION FOR 
ALTERNATIVE
PREMIUMS
AND
COST
SHARING
(SECTIONS
6041 
THROUGH 6043).—
(1) CLARIFICATION OF CONTINUED APPLICATION OF REGULAR 
COST SHARING RULES FOR INDIVIDUALS WITH FAMILY INCOME 
NOT EXCEEDING 100 PERCENT OF THE POVERTY LINE.—Section 
1916A of the Social Security Act, as inserted by section 6041(a) 
of the Deficit Reduction Act of 2005 and amended by sections 
6042 and 6043 of such Act, is amended—
(A) in subsection (a)(1)—
(i) by inserting ‘‘but subject to paragraph (2),’’ after 
‘‘1902(a)(10)(B),’’; and 
(ii) by inserting ‘‘and non-emergency services fur-
nished in a hospital emergency department for which 
cost sharing may be imposed under subsection (e)’’ 
after ‘‘(c)’’; 
(B) by redesignating paragraph (2) of subsection (a) 
as paragraph (3); 
(C) in subsection (a), by inserting after paragraph (1) 
the following:
H. R. 6111—76
‘‘(2) EXEMPTION FOR INDIVIDUALS WITH FAMILY INCOME NOT 
EXCEEDING 100 PERCENT OF THE POVERTY LINE.—
‘‘(A) IN GENERAL.—Paragraph (1) and subsection (d) 
shall not apply, and sections 1916 and 1902(a)(10)(B) shall 
continue to apply, in the case of an individual whose family 
income does not exceed 100 percent of the poverty line 
applicable to a family of the size involved. 
‘‘(B) LIMIT
ON
AGGREGATE
COST
SHARING.—To the 
extent cost sharing under subsections (c) and (e) or under 
section 1916 is imposed against individuals described in 
subparagraph 
(A), 
the 
limitation 
under 
subsection 
(b)(1)(B)(ii) on the total aggregate amount of cost sharing 
shall apply to such cost sharing for all individuals in a 
family described in subparagraph (A) in the same manner 
as such limitations apply to cost sharing and families 
described in subsection (b)(1)(B)(ii).’’; 
(D) in subsections (c)(2)(C) and (e)(2)(C), by inserting 
‘‘under subsection (a)(2)(B) or’’ after ‘‘cap on cost sharing 
applied’’; and 
(E) in subsection (e)(2)(A), by inserting ‘‘who is not 
described in subparagraph (B)’’ after ‘‘subsection (b)(1)’’. 
(2) CLARIFICATION OF TREATMENT OF NON-PREFERRED DRUG 
AND NON-EMERGENCY COST-SHARING.—Such section is further 
amended—
(A) in subsections (b)(1) and (b)(2), by striking ‘‘, subject 
to subsections (c)(2) and (e)(2)(A)’’; 
(B) in subsection (c)(1), in the matter preceding 
subparagraph (A), by striking ‘‘least (or less) costly effec-
tive’’ and inserting ‘‘most (or more) cost effective’’; 
(C) in subsection (c)(1)(B), by striking ‘‘otherwise be 
imposed under’’ and inserting ‘‘be imposed under subsection 
(a) due to the application of’’; 
(D) in subsection (c)(2)(B), by striking ‘‘otherwise not 
subject to cost sharing due to the application of subsection 
(b)(3)(B)’’ and inserting ‘‘not subject to cost sharing under 
subsection (a) due to the application of paragraph (1)(B)’’; 
(E) in subsection (e)(2)(A)—
(i) by amending the heading to read as follows: 
‘‘INDIVIDUALS WITH FAMILY INCOME BETWEEN 100 AND 
150 PERCENT OF THE POVERTY LINE.—’’; and 
(ii) by striking ‘‘under subsection (b)(1)’’ and 
inserting ‘‘under subsection (b)(1)(B)(ii)’’; 
(F) in subsection (e)(2)(B), by striking ‘‘who is otherwise 
not subject to cost sharing under subsection (b)(3)’’ and 
inserting ‘‘described in subsection (a)(2)(A) or who is not 
subject to cost sharing under subsection (b)(3)(B) with 
respect to non-emergency services described in paragraph 
(1)’’; and 
(G) in subsection (e)(2)(C), by inserting ‘‘or section 
1916’’ after ‘‘subsection (a)’’. 
(3) CLARIFICATION OF COST SHARING RULES APPLICABLE TO 
DISABLED CHILDREN PROVIDED MEDICAL ASSISTANCE UNDER THE 
ELIGIBILITY
CATEGORY
ADDED
BY
THE
FAMILY
OPPORTUNITY 
ACT.—Such section is further amended—
(A) in subsection (a)(1), in the second sentence, by 
striking ‘‘section 1916(g)’’ and inserting ‘‘subsection (g) or 
(i) of section 1916’’; and
H. R. 6111—77
(B) in subsection (b)(3)—
(i) in subparagraph (A), by adding at the end the 
following: 
‘‘(vi) Disabled children who are receiving medical 
assistance by virtue of the application of sections 
1902(a)(10)(A)(ii)(XIX) and 1902(cc).’’; and 
(ii) in subparagraph (B), by adding at the end 
the following: 
‘‘(ix) Services furnished to disabled children who 
are receiving medical assistance by virtue of the 
application of sections 1902(a)(10)(A)(ii)(XIX) and 
1902(cc).’’. 
(4) CORRECTION OF IV–B REFERENCES.—Such section is fur-
ther amended in subsection (b)(3)—
(A) in subparagraph (A)(i), by striking ‘‘aid or assist-
ance is made available under part B of title IV to children 
in foster care’’ and inserting ‘‘child welfare services are 
made available under part B of title IV on the basis of 
being a child in foster care’’; and 
(B) in subparagraph (B)(i), by striking ‘‘aid or assist-
ance is made available under part B of title IV to children 
in foster care’’ and inserting ‘‘child welfare services are 
made available under part B of title IV on the basis of 
being a child in foster care or’’. 
(5) NON-EMERGENCY SERVICES.—Section 1916A(e)(4)(A) of 
the Social Security Act, as added by section 6043(a) of the 
Deficit Reduction Act of 2005, is amended by striking ‘‘the 
physician determines’’. 
(6) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect as if included in the amendments 
made by sections 6041(a) of the Deficit Reduction Act of 2005, 
except that insofar as such amendments are to, or relate to, 
subsection (c) or (e) of section 1916A of the Social Security 
Act, such amendments shall take effect as if included in the 
amendments made by section 6042 or 6043, respectively, of 
the Deficit Reduction Act of 2005. 
(b) CLARIFYING TREATMENT OF CERTAIN ANNUITIES (SECTION 
6012).—
(1) IN GENERAL.—Section 1917(c)(1)(F)(i) of the Social Secu-
rity Act (42 U.S.C. 1396p(c)(1)(F)(i)), as added by section 6012(b) 
of the Deficit Reduction Act of 2005, is amended by striking 
‘‘annuitant’’ and inserting ‘‘institutionalized individual’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall be effective as if included in the enactment of section 
6012 of the Deficit Reduction Act of 2005. 
(c) ADDITIONAL MISCELLANEOUS TECHNICAL CORRECTIONS.—
(1) DOCUMENTATION (SECTION 6036).—
(A) IN GENERAL.—Effective as if included in the amend-
ment made by section 6036(a)(2) of the Deficit Reduction 
Act of 2005, section 1903(x) of the Social Security Act 
(42 U.S.C. 1396b(x)), as inserted by such section 6036(a)(2), 
is amended—
(i) in paragraph (1), by striking ‘‘(i)(23)’’ and 
inserting ‘‘(i)(22)’’; 
(ii) in paragraph (2)—
(I) in the matter preceding subparagraph (A), 
by striking ‘‘alien’’ and inserting ‘‘individual
H. R. 6111—78
declaring to be a citizen or national of the United 
States’’; 
(II) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) and is receiving—
‘‘(i) disability insurance benefits under section 223 
or monthly insurance benefits under section 202 based 
on such individual’s disability (as defined in section 
223(d)); or 
‘‘(ii) supplemental security income benefits under 
title XVI;’’; 
(III) in subparagraph (C)—
(aa) by striking ‘‘other’’; and 
(bb) by striking ‘‘had’’ and inserting ‘‘has’’; 
(IV) by redesignating subparagraph (C) as 
subparagraph (D); and 
(V) by inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) and with respect to whom—
‘‘(i) child welfare services are made available under 
part B of title IV on the basis of being a child in 
foster care; or 
‘‘(ii) adoption or foster care assistance is made 
available under part E of title IV; or’’; and 
(iii) in paragraph (3)(C)(iii), by striking ‘‘I–97’’ and 
inserting ‘‘I–197’’. 
(B) ASSURANCE
OF
STATE
FOSTER
CARE
AGENCY 
VERIFICATION OF CITIZENSHIP OR LEGAL STATUS.—
(i) STATE PLAN AMENDMENT.—Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)) is amended—
(I) in paragraph (25), by striking ‘‘and’’ at the 
end; 
(II) in paragraph (26)(C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(III) by adding at the end the following: 
‘‘(27) provides that, with respect to any child in foster 
care under the responsibility of the State under this part or 
part B and without regard to whether foster care maintenance 
payments are made under section 472 on behalf of the child, 
the State has in effect procedures for verifying the citizenship 
or immigration status of the child.’’. 
(ii) INCLUSION IN REVIEWS OF CHILD AND FAMILY 
SERVICES PROGRAMS.—Section 1123A(b)(2) of the Social 
Security Act (42 U.S.C. 1320a–2a(b)(2)) is amended 
by inserting ‘‘(which shall include determining whether 
the State program is in conformity with the require-
ment of section 471(a)(27))’’ after ‘‘review’’. 
(iii) EFFECTIVE DATE.—The amendments made by 
this subparagraph shall take effect on the date that 
is 6 months after the date of the enactment of this 
Act. 
(2) MISCELLANEOUS TECHNICAL CORRECTIONS.—
(A) Effective as if included in the enactment of the 
Deficit Reduction Act of 2005 (Public Law 109–171), the 
following sections of such Act are amended as follows: 
(i) Section 5114(a)(2) is amended by striking ‘‘sec-
tion 
1842(b)(6)(F) 
of 
such 
Act 
(42 
U.S.C.
H. R. 6111—79
1395u(b)(6)(F))’’ and inserting ‘‘section 1842(b)(6) of 
such Act (42 U.S.C. 1395u(b)(6))’’. 
(ii) Section 6003(b)(2) is amended, by striking ‘‘sub-
section (k)’’ and inserting ‘‘subsection (k)(1)’’. 
(iii) Sections 6031(b), 6032(b), and 6035(c) are each 
amended by striking ‘‘section 6035(e)’’ and inserting 
‘‘section 6034(e)’’. 
(iv) Section 6034(b) is amended by striking ‘‘section 
6033(a)’’ and inserting ‘‘section 6032(a)’’. 
(v) Section 6036 is amended—
(I) in subsection (b), by striking ‘‘section 
1903(z)’’ and inserting ‘‘section 1903(x)’’; and 
(II) in subsection (c), by striking ‘‘(i)(23)’’ and 
inserting ‘‘(i)(22)’’. 
(B) Effective as if included in the amendment made 
by section 6015(a)(1) of the Deficit Reduction Act of 2005, 
section 1919(c)(5)(A)(i)(II) of the Social Security Act (42 
U.S.C. 1396r(c)(5)(A)(i)(II)) is amended by striking ‘‘clause 
(v)’’ and inserting ‘‘subparagraph (B)(v)’’. 
DIVISION C—OTHER PROVISIONS 
TITLE I—GULF OF MEXICO ENERGY 
SECURITY 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Gulf of Mexico Energy Security 
Act of 2006’’. 
SEC. 102. DEFINITIONS. 
In this title: 
(1) 181 AREA.—The term ‘‘181 Area’’ means the area identi-
fied in map 15, page 58, of the Proposed Final Outer Conti-
nental Shelf Oil and Gas Leasing Program for 1997–2002, 
dated August 1996, of the Minerals Management Service, avail-
able in the Office of the Director of the Minerals Management 
Service, excluding the area offered in OCS Lease Sale 181, 
held on December 5, 2001. 
(2) 181 SOUTH AREA.—The term ‘‘181 South Area’’ means 
any area—
(A) located—
(i) south of the 181 Area; 
(ii) west of the Military Mission Line; and 
(iii) in the Central Planning Area; 
(B) excluded from the Proposed Final Outer Conti-
nental Shelf Oil and Gas Leasing Program for 1997–2002, 
dated August 1996, of the Minerals Management Service; 
and 
(C) included in the areas considered for oil and gas 
leasing, as identified in map 8, page 37 of the document 
entitled ‘‘Draft Proposed Program Outer Continental Shelf 
Oil and Gas Leasing Program 2007–2012’’, dated February 
2006.
H. R. 6111—80
(3) BONUS OR ROYALTY CREDIT.—The term ‘‘bonus or royalty 
credit’’ means a legal instrument or other written documenta-
tion, or an entry in an account managed by the Secretary, 
that may be used in lieu of any other monetary payment 
for—
(A) a bonus bid for a lease on the outer Continental 
Shelf; or 
(B) a royalty due on oil or gas production from any 
lease located on the outer Continental Shelf. 
(4) CENTRAL PLANNING AREA.—The term ‘‘Central Planning 
Area’’ means the Central Gulf of Mexico Planning Area of 
the outer Continental Shelf, as designated in the document 
entitled ‘‘Draft Proposed Program Outer Continental Shelf Oil 
and Gas Leasing Program 2007–2012’’, dated February 2006. 
(5) EASTERN PLANNING AREA.—The term ‘‘Eastern Planning 
Area’’ means the Eastern Gulf of Mexico Planning Area of 
the outer Continental Shelf, as designated in the document 
entitled ‘‘Draft Proposed Program Outer Continental Shelf Oil 
and Gas Leasing Program 2007–2012’’, dated February 2006. 
(6) 2002–2007 PLANNING
AREA.—The term ‘‘2002–2007 
planning area’’ means any area—
(A) located in—
(i) the Eastern Planning Area, as designated in 
the Proposed Final Outer Continental Shelf Oil and 
Gas Leasing Program 2002–2007, dated April 2002, 
of the Minerals Management Service; 
(ii) the Central Planning Area, as designated in 
the Proposed Final Outer Continental Shelf Oil and 
Gas Leasing Program 2002–2007, dated April 2002, 
of the Minerals Management Service; or 
(iii) the Western Planning Area, as designated in 
the Proposed Final Outer Continental Shelf Oil and 
Gas Leasing Program 2002–2007, dated April 2002, 
of the Minerals Management Service; and 
(B) not located in—
(i) an area in which no funds may be expended 
to conduct offshore preleasing, leasing, and related 
activities under sections 104 through 106 of the Depart-
ment of the Interior, Environment, and Related Agen-
cies Appropriations Act, 2006 (Public Law 109–54; 119 
Stat. 521) (as in effect on August 2, 2005); 
(ii) an area withdrawn from leasing under the 
‘‘Memorandum on Withdrawal of Certain Areas of the 
United States Outer Continental Shelf from Leasing 
Disposition’’, from 34 Weekly Comp. Pres. Doc. 1111, 
dated June 12, 1998; or 
(iii) the 181 Area or 181 South Area. 
(7) GULF
PRODUCING
STATE.—The term ‘‘Gulf producing 
State’’ means each of the States of Alabama, Louisiana, Mis-
sissippi, and Texas. 
(8) MILITARY MISSION LINE.—The term ‘‘Military Mission 
Line’’ means the north-south line at 86°41′ W. longitude. 
(9) QUALIFIED OUTER CONTINENTAL SHELF REVENUES.—
(A) IN
GENERAL.—The term ‘‘qualified outer Conti-
nental Shelf revenues’’ means—
(i) in the case of each of fiscal years 2007 through 
2016, all rentals, royalties, bonus bids, and other sums
H. R. 6111—81
due and payable to the United States from leases 
entered into on or after the date of enactment of this 
Act for—
(I) areas in the 181 Area located in the Eastern 
Planning Area; and 
(II) the 181 South Area; and 
(ii) in the case of fiscal year 2017 and each fiscal 
year thereafter, all rentals, royalties, bonus bids, and 
other sums due and payable to the United States 
received on or after October 1, 2016, from leases 
entered into on or after the date of enactment of this 
Act for—
(I) the 181 Area; 
(II) the 181 South Area; and 
(III) the 2002–2007 planning area. 
(B) EXCLUSIONS.—The term ‘‘qualified outer Conti-
nental Shelf revenues’’ does not include—
(i) revenues from the forfeiture of a bond or other 
surety securing obligations other than royalties, civil 
penalties, or royalties taken by the Secretary in-kind 
and not sold; or 
(ii) revenues generated from leases subject to sec-
tion 8(g) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337(g)). 
(10) COASTAL POLITICAL SUBDIVISION.—The term ‘‘coastal 
political subdivision’’ means a political subdivision of a Gulf 
producing State any part of which political subdivision is—
(A) within the coastal zone (as defined in section 304 
of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1453)) of the Gulf producing State as of the date of enact-
ment of this Act; and 
(B) not more than 200 nautical miles from the 
geographic center of any leased tract. 
(11) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Interior. 
SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181 AREA AND 181 
SOUTH AREA OF GULF OF MEXICO. 
(a) 181 AREA LEASE SALE.—Except as provided in section 104, 
the Secretary shall offer the 181 Area for oil and gas leasing 
pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) as soon as practicable, but not later than 1 year, 
after the date of enactment of this Act. 
(b) 181 SOUTH AREA LEASE SALE.—The Secretary shall offer 
the 181 South Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as soon as 
practicable after the date of enactment of this Act. 
(c) LEASING PROGRAM.—The 181 Area and 181 South Area 
shall be offered for lease under this section notwithstanding the 
omission of the 181 Area or the 181 South Area from any outer 
Continental Shelf leasing program under section 18 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1344). 
(d) CONFORMING AMENDMENT.—Section 105 of the Department 
of the Interior, Environment, and Related Agencies Appropriations 
Act, 2006 (Public Law 109–54; 119 Stat. 522) is amended by 
inserting ‘‘(other than the 181 South Area (as defined in section
H. R. 6111—82
102 of the Gulf of Mexico Energy Security Act of 2006))’’ after 
‘‘lands located outside Sale 181’’. 
SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CERTAIN AREAS 
OF GULF OF MEXICO. 
(a) IN GENERAL.—Effective during the period beginning on the 
date of enactment of this Act and ending on June 30, 2022, the 
Secretary shall not offer for leasing, preleasing, or any related 
activity—
(1) any area east of the Military Mission Line in the Gulf 
of Mexico; 
(2) any area in the Eastern Planning Area that is within 
125 miles of the coastline of the State of Florida; or 
(3) any area in the Central Planning Area that is—
(A) within—
(i) the 181 Area; and 
(ii) 100 miles of the coastline of the State of 
Florida; or 
(B)(i) outside the 181 Area; 
(ii) east of the western edge of the Pensacola Official 
Protraction Diagram (UTM X coordinate 1,393,920 (NAD 
27 feet)); and 
(iii) within 100 miles of the coastline of the State 
of Florida. 
(b) MILITARY MISSION LINE.—Notwithstanding subsection (a), 
the United States reserves the right to designate by and through 
the Secretary of Defense, with the approval of the President, 
national defense areas on the outer Continental Shelf pursuant 
to section 12(d) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1341(d)). 
(c) EXCHANGE OF CERTAIN LEASES.—
(1) IN GENERAL.—The Secretary shall permit any person 
that, as of the date of enactment of this Act, has entered 
into an oil or gas lease with the Secretary in any area described 
in paragraph (2) or (3) of subsection (a) to exchange the lease 
for a bonus or royalty credit that may only be used in the 
Gulf of Mexico. 
(2) VALUATION
OF
EXISTING
LEASE.—The amount of the 
bonus or royalty credit for a lease to be exchanged shall be 
equal to—
(A) the amount of the bonus bid; and 
(B) any rental paid for the lease as of the date the 
lessee notifies the Secretary of the decision to exchange 
the lease. 
(3) REVENUE
DISTRIBUTION.—No bonus or royalty credit 
may be used under this subsection in lieu of any payment 
due under, or to acquire any interest in, a lease subject to 
the revenue distribution provisions of section 8(g) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(g)). 
(4) REGULATIONS.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall promulgate regula-
tions that shall provide a process for—
(A) notification to the Secretary of a decision to 
exchange an eligible lease; 
(B) issuance of bonus or royalty credits in exchange 
for relinquishment of the existing lease;
H. R. 6111—83
(C) transfer of the bonus or royalty credit to any other 
person; and 
(D) determining the proper allocation of bonus or roy-
alty credits to each lease interest owner. 
SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF 
REVENUES FROM 181 AREA, 181 SOUTH AREA, AND 2002–
2007 PLANNING AREAS OF GULF OF MEXICO. 
(a) IN GENERAL.—Notwithstanding section 9 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1338) and subject to the other 
provisions of this section, for each applicable fiscal year, the Sec-
retary of the Treasury shall deposit—
(1) 50 percent of qualified outer Continental Shelf revenues 
in the general fund of the Treasury; and 
(2) 50 percent of qualified outer Continental Shelf revenues 
in a special account in the Treasury from which the Secretary 
shall disburse—
(A) 75 percent to Gulf producing States in accordance 
with subsection (b); and 
(B) 25 percent to provide financial assistance to States 
in accordance with section 6 of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 460l–8), which shall 
be considered income to the Land and Water Conservation 
Fund for purposes of section 2 of that Act (16 U.S.C. 
460l–5). 
(b) ALLOCATION AMONG GULF PRODUCING STATES AND COASTAL 
POLITICAL SUBDIVISIONS.—
(1) ALLOCATION AMONG GULF PRODUCING STATES FOR FISCAL 
YEARS 2007 THROUGH 2016.—
(A) IN GENERAL.—Subject to subparagraph (B), effective 
for each of fiscal years 2007 through 2016, the amount 
made available under subsection (a)(2)(A) shall be allocated 
to each Gulf producing State in amounts (based on a for-
mula established by the Secretary by regulation) that are 
inversely proportional to the respective distances between 
the point on the coastline of each Gulf producing State 
that is closest to the geographic center of the applicable 
leased tract and the geographic center of the leased tract. 
(B) MINIMUM ALLOCATION.—The amount allocated to 
a Gulf producing State each fiscal year under subparagraph 
(A) shall be at least 10 percent of the amounts available 
under subsection (a)(2)(A). 
(2) ALLOCATION AMONG GULF PRODUCING STATES FOR FISCAL 
YEAR 2017 AND THEREAFTER.—
(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C), effective for fiscal year 2017 and each fiscal year there-
after—
(i) the amount made available under subsection 
(a)(2)(A) from any lease entered into within the 181 
Area or the 181 South Area shall be allocated to each 
Gulf producing State in amounts (based on a formula 
established by the Secretary by regulation) that are 
inversely proportional to the respective distances 
between the point on the coastline of each Gulf pro-
ducing State that is closest to the geographic center 
of the applicable leased tract and the geographic center 
of the leased tract; and
H. R. 6111—84
(ii) the amount made available under subsection 
(a)(2)(A) from any lease entered into within the 2002–
2007 planning area shall be allocated to each Gulf 
producing State in amounts that are inversely propor-
tional to the respective distances between the point 
on the coastline of each Gulf producing State that 
is closest to the geographic center of each historical 
lease site and the geographic center of the historical 
lease site, as determined by the Secretary. 
(B) MINIMUM ALLOCATION.—The amount allocated to 
a Gulf producing State each fiscal year under subparagraph 
(A) shall be at least 10 percent of the amounts available 
under subsection (a)(2)(A). 
(C) HISTORICAL LEASE SITES.—
(i) IN GENERAL.—Subject to clause (ii), for purposes 
of subparagraph (A)(ii), the historical lease sites in 
the 2002–2007 planning area shall include all leases 
entered into by the Secretary for an area in the Gulf 
of Mexico during the period beginning on October 1, 
1982 (or an earlier date if practicable, as determined 
by the Secretary), and ending on December 31, 2015. 
(ii) ADJUSTMENT.—Effective January 1, 2022, and 
every 5 years thereafter, the ending date described 
in clause (i) shall be extended for an additional 5 
calendar years. 
(3) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS.—
(A) IN GENERAL.—The Secretary shall pay 20 percent 
of the allocable share of each Gulf producing State, as 
determined under paragraphs (1) and (2), to the coastal 
political subdivisions of the Gulf producing State. 
(B) ALLOCATION.—The amount paid by the Secretary 
to coastal political subdivisions shall be allocated to each 
coastal political subdivision in accordance with subpara-
graphs (B), (C), and (E) of section 31(b)(4) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)). 
(c) TIMING.—The amounts required to be deposited under para-
graph (2) of subsection (a) for the applicable fiscal year shall be 
made available in accordance with that paragraph during the fiscal 
year immediately following the applicable fiscal year. 
(d) AUTHORIZED USES.—
(1) IN GENERAL.—Subject to paragraph (2), each Gulf pro-
ducing State and coastal political subdivision shall use all 
amounts received under subsection (b) in accordance with all 
applicable Federal and State laws, only for 1 or more of the 
following purposes: 
(A) Projects and activities for the purposes of coastal 
protection, including conservation, coastal restoration, 
hurricane protection, and infrastructure directly affected 
by coastal wetland losses. 
(B) Mitigation of damage to fish, wildlife, or natural 
resources. 
(C) Implementation of a federally-approved marine, 
coastal, or comprehensive conservation management plan. 
(D) Mitigation of the impact of outer Continental Shelf 
activities through the funding of onshore infrastructure 
projects.
H. R. 6111—85
(E) Planning assistance and the administrative costs 
of complying with this section. 
(2) LIMITATION.—Not more than 3 percent of amounts 
received by a Gulf producing State or coastal political subdivi-
sion under subsection (b) may be used for the purposes 
described in paragraph (1)(E). 
(e) ADMINISTRATION.—Amounts made available under sub-
section (a)(2) shall—
(1) be made available, without further appropriation, in 
accordance with this section; 
(2) remain available until expended; and 
(3) be in addition to any amounts appropriated under—
(A) the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.); 
(B) the Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 460l–4 et seq.); or 
(C) any other provision of law. 
(f) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER 
CONTINENTAL SHELF REVENUES.—
(1) IN GENERAL.—Subject to paragraph (2), the total amount 
of qualified outer Continental Shelf revenues made available 
under subsection (a)(2) shall not exceed $500,000,000 for each 
of fiscal years 2016 through 2055. 
(2) EXPENDITURES.—For the purpose of paragraph (1), for 
each of fiscal years 2016 through 2055, expenditures under 
subsection (a)(2) shall be net of receipts from that fiscal year 
from any area in the 181 Area in the Eastern Planning Area 
and the 181 South Area. 
(3) PRO
RATA
REDUCTIONS.—If paragraph (1) limits the 
amount of qualified outer Continental Shelf revenue that would 
be paid under subparagraphs (A) and (B) of subsection (a)(2)—
(A) the Secretary shall reduce the amount of qualified 
outer Continental Shelf revenue provided to each recipient 
on a pro rata basis; and 
(B) any remainder of the qualified outer Continental 
Shelf revenues shall revert to the general fund of the 
Treasury. 
TITLE II—SURFACE MINING CONTROL 
AND 
RECLAMATION 
ACT 
AMEND-
MENTS OF 2006
SEC. 200. SHORT TITLE. 
This title may be cited as the ‘‘Surface Mining Control and 
Reclamation Act Amendments of 2006’’. 
Subtitle A—Mining Control and 
Reclamation 
SEC. 201. ABANDONED MINE RECLAMATION FUND AND PURPOSES. 
(a) IN GENERAL.—Section 401 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1231) is amended—
(1) in subsection (c)—
H. R. 6111—86
(A) by striking paragraphs (2) and (6); and 
(B) by redesignating paragraphs (3), (4), and (5) and 
paragraphs (7) through (13) as paragraphs (2) through 
(11), respectively; 
(2) by striking subsection (d) and inserting the following: 
‘‘(d) AVAILABILITY OF MONEYS; NO FISCAL YEAR LIMITATION.—
‘‘(1) IN GENERAL.—Moneys from the fund for expenditures 
under subparagraphs (A) through (D) of section 402(g)(3) shall 
be available only when appropriated for those subparagraphs. 
‘‘(2) NO FISCAL YEAR LIMITATION.—Appropriations described 
in paragraph (1) shall be made without fiscal year limitation. 
‘‘(3) OTHER
PURPOSES.—Moneys from the fund shall be 
available for all other purposes of this title without prior appro-
priation as provided in subsection (f).’’; 
(3) in subsection (e)—
(A) in the second sentence, by striking ‘‘the needs of 
such fund’’ and inserting ‘‘achieving the purposes of the 
transfers under section 402(h)’’; and 
(B) in the third sentence, by inserting before the period 
the following: ‘‘for the purpose of the transfers under section 
402(h)’’; and 
(4) by adding at the end the following: 
‘‘(f) GENERAL LIMITATION ON OBLIGATION AUTHORITY.—
‘‘(1) IN GENERAL.—From amounts deposited into the fund 
under subsection (b), the Secretary shall distribute during each 
fiscal year beginning after September 30, 2007, an amount 
determined under paragraph (2). 
‘‘(2) AMOUNTS.—
‘‘(A) FOR FISCAL YEARS 2008 THROUGH 2022.—For each 
of fiscal years 2008 through 2022, the amount distributed 
by the Secretary under this subsection shall be equal to—
‘‘(i) the amounts deposited into the fund under 
paragraphs (1), (2), and (4) of subsection (b) for the 
preceding fiscal year that were allocated under para-
graphs (1) and (5) of section 402(g); plus 
‘‘(ii) the amount needed for the adjustment under 
section 402(g)(8) for the current fiscal year. 
‘‘(B) FISCAL YEARS 2023 AND THEREAFTER.—For fiscal 
year 2023 and each fiscal year thereafter, to the extent 
that funds are available, the Secretary shall distribute 
an amount equal to the amount distributed under subpara-
graph (A) during fiscal year 2022. 
‘‘(3) DISTRIBUTION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), for each fiscal year, of the amount to be distributed 
to States and Indian tribes pursuant to paragraph (2), 
the Secretary shall distribute—
‘‘(i) the amounts allocated under paragraph (1) 
of section 402(g), the amounts allocated under para-
graph (5) of section 402(g), and any amount reallocated 
under section 411(h)(3) in accordance with section 
411(h)(2), for grants to States and Indian tribes under 
section 402(g)(5); and 
‘‘(ii) the amounts allocated under section 402(g)(8). 
‘‘(B) EXCLUSION.—Beginning on October 1, 2007, cer-
tified States shall be ineligible to receive amounts under 
section 402(g)(1).
H. R. 6111—87
‘‘(4) AVAILABILITY.—Amounts in the fund available to the 
Secretary for obligation under this subsection shall be available 
until expended. 
‘‘(5) ADDITION.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
amount distributed under this subsection for each fiscal 
year shall be in addition to the amount appropriated from 
the fund during the fiscal year. 
‘‘(B) EXCEPTIONS.—Notwithstanding paragraph (3), the 
amount distributed under this subsection for the first 4 
fiscal years beginning on and after October 1, 2007, shall 
be equal to the following percentage of the amount other-
wise required to be distributed: 
‘‘(i) 50 percent in fiscal year 2008. 
‘‘(ii) 50 percent in fiscal year 2009. 
‘‘(iii) 75 percent in fiscal year 2010. 
‘‘(iv) 75 percent in fiscal year 2011.’’. 
(b) CONFORMING AMENDMENT.—Section 712(b) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1302(b)) 
is amended by striking ‘‘section 401(c)(11)’’ and inserting ‘‘section 
401(c)(9)’’. 
SEC. 202. RECLAMATION FEE. 
(a) AMOUNTS.—
(1) FISCAL YEARS 2008–2012.—Effective October 1, 2007, sec-
tion 402(a) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1232(a)) is amended—
(A) by striking ‘‘35’’ and inserting ‘‘31.5’’; 
(B) by striking ‘‘15’’ and inserting ‘‘13.5’’; and 
(C) by striking ‘‘10 cents’’ and inserting ‘‘9 cents’’. 
(2) FISCAL YEARS 2013–2021.—Effective October 1, 2012, sec-
tion 402(a) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph 
(1)) is amended—
(A) by striking ‘‘31.5’’ and inserting ‘‘28’’; 
(B) by striking ‘‘13.5’’ and inserting ‘‘12’’; and 
(C) by striking ‘‘9 cents’’ and inserting ‘‘8 cents’’. 
(b) DURATION.—Effective September 30, 2007, section 402(b) 
of the Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1232(b)) (as amended by section 7007 of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109–234; 120 
Stat. 484)) is amended by striking ‘‘September 30, 2007’’ and all 
that follows through the end of the sentence and inserting ‘‘Sep-
tember 30, 2021.’’. 
(c) ALLOCATION
OF FUNDS.—Section 402(g) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(g)) 
is amended—
(1) in paragraph (1)(D)—
(A) by inserting ‘‘(except for grants awarded during 
fiscal years 2008, 2009, and 2010 to the extent not 
expended within 5 years)’’ after ‘‘this paragraph’’; and 
(B) by striking ‘‘in any area under paragraph (2), (3), 
(4), or (5)’’ and inserting ‘‘under paragraph (5)’’; 
(2) by striking paragraph (2) and inserting: 
‘‘(2) In making the grants referred to in paragraph (1)(C) and 
the grants referred to in paragraph (5), the Secretary shall ensure
H. R. 6111—88
strict compliance by the States and Indian tribes with the priorities 
described in section 403(a) until a certification is made under section 
411(a).’’; 
(3) in paragraph (3)—
(A) in the matter preceding subparagraph (A), by 
striking ‘‘paragraphs (2) and’’ and inserting ‘‘paragraph’’; 
(B) in subparagraph (A), by striking ‘‘401(c)(11)’’ and 
inserting ‘‘401(c)(9)’’; and 
(C) by adding at the end the following: 
‘‘(E) For the purpose of paragraph (8).’’; 
(4) in paragraph (5)—
(A) by inserting ‘‘(A)’’ after ‘‘(5)’’; 
(B) in the first sentence, by striking ‘‘40’’ and inserting 
‘‘60’’; 
(C) in the last sentence, by striking ‘‘Funds allocated 
or expended by the Secretary under paragraphs (2), (3), 
or (4)’’ and inserting ‘‘Funds made available under para-
graph (3) or (4)’’; and 
(D) by adding at the end the following: 
‘‘(B) Any amount that is reallocated and available under section 
411(h)(3) shall be in addition to amounts that are allocated under 
subparagraph (A).’’; and 
(5) by striking paragraphs (6) through (8) and inserting 
the following: 
‘‘(6)(A) Any State with an approved abandoned mine reclama-
tion program pursuant to section 405 may receive and retain, with-
out regard to the 3-year limitation referred to in paragraph (1)(D), 
up to 30 percent of the total of the grants made annually to 
the State under paragraphs (1) and (5) if those amounts are depos-
ited into an acid mine drainage abatement and treatment fund 
established under State law, from which amounts (together with 
all interest earned on the amounts) are expended by the State 
for the abatement of the causes and the treatment of the effects 
of acid mine drainage in a comprehensive manner within qualified 
hydrologic units affected by coal mining practices. 
‘‘(B) In this paragraph, the term ‘qualified hydrologic unit’ 
means a hydrologic unit—
‘‘(i) in which the water quality has been significantly 
affected by acid mine drainage from coal mining practices in 
a manner that adversely impacts biological resources; and 
‘‘(ii) that contains land and water that are—
‘‘(I) eligible pursuant to section 404 and include any 
of the priorities described in section 403(a); and 
‘‘(II) the subject of expenditures by the State from 
the forfeiture of bonds required under section 509 or from 
other States sources to abate and treat acid mine drainage. 
‘‘(7) In complying with the priorities described in section 403(a), 
any State or Indian tribe may use amounts available in grants 
made annually to the State or tribe under paragraphs (1) and 
(5) for the reclamation of eligible land and water described in 
section 403(a)(3) before the completion of reclamation projects under 
paragraphs (1) and (2) of section 403(a) only if the expenditure 
of funds for the reclamation is done in conjunction with the expendi-
ture before, on, or after the date of enactment of the Surface 
Mining Control and Reclamation Act Amendments of 2006 of funds 
for reclamation projects under paragraphs (1) and (2) of section 
403(a).
H. R. 6111—89
‘‘(8)(A) In making funds available under this title, the Secretary 
shall ensure that the grant awards total not less than $3,000,000 
annually to each State and each Indian tribe having an approved 
abandoned mine reclamation program pursuant to section 405 and 
eligible land and water pursuant to section 404, so long as an 
allocation of funds to the State or tribe is necessary to achieve 
the priorities stated in paragraphs (1) and (2) of section 403(a). 
‘‘(B) Notwithstanding any other provision of law, this paragraph 
applies to the States of Tennessee and Missouri.’’. 
(d) TRANSFERS OF INTEREST EARNED BY ABANDONED MINE REC-
LAMATION FUND.—Section 402 of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1232) is amended by striking 
subsection (h) and inserting the following: 
‘‘(h) TRANSFERS OF INTEREST EARNED BY FUND.—
‘‘(1) IN GENERAL.—
‘‘(A) TRANSFERS TO COMBINED BENEFIT FUND.—As soon 
as practicable after the beginning of fiscal year 2007 and 
each fiscal year thereafter, and before making any alloca-
tion with respect to the fiscal year under subsection (g), 
the Secretary shall use an amount not to exceed the amount 
of interest that the Secretary estimates will be earned 
and paid to the fund during the fiscal year to transfer 
to the Combined Benefit Fund such amounts as are esti-
mated by the trustees of such fund to offset the amount 
of any deficit in net assets in the Combined Benefit Fund 
as of October 1, 2006, and to make the transfer described 
in paragraph (2)(A). 
‘‘(B) TRANSFERS TO 1992 AND 1993 PLANS.—As soon as 
practicable after the beginning of fiscal year 2008 and 
each fiscal year thereafter, and before making any alloca-
tion with respect to the fiscal year under subsection (g), 
the Secretary shall use an amount not to exceed the amount 
of interest that the Secretary estimates will be earned 
and paid to the fund during the fiscal year (reduced by 
the amount used under subparagraph (A)) to make the 
transfers described in paragraphs (2)(B) and (2)(C). 
‘‘(2) TRANSFERS DESCRIBED.—The transfers referred to in 
paragraph (1) are the following: 
‘‘(A) UNITED MINE WORKERS OF AMERICA COMBINED BEN-
EFIT FUND.—A transfer to the United Mine Workers of 
America Combined Benefit Fund equal to the amount that 
the trustees of the Combined Benefit Fund estimate will 
be expended from the fund for the fiscal year in which 
the transfer is made, reduced by—
‘‘(i) the amount the trustees of the Combined Ben-
efit Fund estimate the Combined Benefit Fund will 
receive during the fiscal year in—
‘‘(I) required premiums; and 
‘‘(II) payments paid by Federal agencies in 
connection with benefits provided by the Combined 
Benefit Fund; and 
‘‘(ii) the amount the trustees of the Combined Ben-
efit Fund estimate will be expended during the fiscal 
year to provide health benefits to beneficiaries who 
are unassigned beneficiaries solely as a result of the 
application of section 9706(h)(1) of the Internal Rev-
enue Code of 1986, but only to the extent that such
H. R. 6111—90
amount does not exceed the amounts described in sub-
section (i)(1)(A) that the Secretary estimates will be 
available to pay such estimated expenditures. 
‘‘(B) UNITED MINE WORKERS OF AMERICA 1992 BENEFIT 
PLAN.—A transfer to the United Mine Workers of America 
1992 Benefit Plan, in an amount equal to the difference 
between—
‘‘(i) the amount that the trustees of the 1992 
UMWA Benefit Plan estimate will be expended from 
the 1992 UMWA Benefit Plan during the next calendar 
year to provide the benefits required by the 1992 
UMWA Benefit Plan on the date of enactment of this 
subparagraph; minus 
‘‘(ii) the amount that the trustees of the 1992 
UMWA Benefit Plan estimate the 1992 UMWA Benefit 
Plan will receive during the next calendar year in—
‘‘(I) required monthly per beneficiary pre-
miums, including the amount of any security pro-
vided to the 1992 UMWA Benefit Plan that is 
available for use in the provision of benefits; and 
‘‘(II) payments paid by Federal agencies in 
connection with benefits provided by the 1992 
UMWA Benefit Plan. 
‘‘(C) 
MULTIEMPLOYER
HEALTH
BENEFIT
PLAN.—A 
transfer to the Multiemployer Health Benefit Plan estab-
lished after July 20, 1992, by the parties that are the 
settlors of the 1992 UMWA Benefit Plan referred to in 
subparagraph (B) (referred to in this subparagraph and 
subparagraph (D) as ‘the Plan’), in an amount equal to 
the excess (if any) of—
‘‘(i) the amount that the trustees of the Plan esti-
mate will be expended from the Plan during the next 
calendar year, to provide benefits no greater than those 
provided by the Plan as of December 31, 2006; over 
‘‘(ii) the amount that the trustees estimated the 
Plan will receive during the next calendar year in 
payments paid by Federal agencies in connection with 
benefits provided by the Plan. 
Such excess shall be calculated by taking into account 
only those beneficiaries actually enrolled in the Plan as 
of December 31, 2006, who are eligible to receive benefits 
under the Plan on the first day of the calendar year for 
which the transfer is made. 
‘‘(D) INDIVIDUALS
CONSIDERED
ENROLLED.—For pur-
poses of subparagraph (C), any individual who was eligible 
to receive benefits from the Plan as of the date of enactment 
of this subsection, even though benefits were being provided 
to the individual pursuant to a settlement agreement 
approved by order of a bankruptcy court entered on or 
before September 30, 2004, will be considered to be actually 
enrolled in the Plan and shall receive benefits from the 
Plan beginning on December 31, 2006. 
‘‘(3) ADJUSTMENT.—If, for any fiscal year, the amount of 
a transfer under subparagraph (A), (B), or (C) of paragraph 
(2) is more or less than the amount required to be transferred 
under that subparagraph, the Secretary shall appropriately
H. R. 6111—91
adjust the amount transferred under that subparagraph for 
the next fiscal year. 
‘‘(4) ADDITIONAL AMOUNTS.—
‘‘(A) 
PREVIOUSLY
CREDITED
INTEREST.—Notwith-
standing any other provision of law, any interest credited 
to the fund that has not previously been transferred to 
the Combined Benefit Fund referred to in paragraph (2)(A) 
under this section—
‘‘(i) shall be held in reserve by the Secretary until 
such time as necessary to make the payments under 
subparagraphs (A) and (B) of subsection (i)(1), as 
described in clause (ii); and 
‘‘(ii) in the event that the amounts described in 
subsection (i)(1) are insufficient to make the maximum 
payments described in subparagraphs (A) and (B) of 
subsection (i)(1), shall be used by the Secretary to 
supplement the payments so that the maximum 
amount permitted under those paragraphs is paid. 
‘‘(B) PREVIOUSLY ALLOCATED AMOUNTS.—All amounts 
allocated under subsection (g)(2) before the date of enact-
ment of this subparagraph for the program described in 
section 406, but not appropriated before that date, shall 
be available to the Secretary to make the transfers 
described in paragraph (2). 
‘‘(C) ADEQUACY OF PREVIOUSLY CREDITED INTEREST.—
The Secretary shall—
‘‘(i) consult with the trustees of the plans described 
in paragraph (2) at reasonable intervals; and 
‘‘(ii) notify Congress if a determination is made 
that the amounts held in reserve under subparagraph 
(A) are insufficient to meet future requirements under 
subparagraph (A)(ii). 
‘‘(D) ADDITIONAL RESERVE AMOUNTS.—In addition to 
amounts held in reserve under subparagraph (A), there 
is authorized to be appropriated such sums as may be 
necessary for transfer to the fund to carry out the purposes 
of subparagraph (A)(ii). 
‘‘(E) INAPPLICABILITY OF CAP.—The limitation described 
in subsection (i)(3)(A) shall not apply to payments made 
from the reserve fund under this paragraph. 
‘‘(5) LIMITATIONS.—
‘‘(A) AVAILABILITY OF FUNDS FOR NEXT FISCAL YEAR.—
The Secretary may make transfers under subparagraphs 
(B) and (C) of paragraph (2) for a calendar year only 
if the Secretary determines, using actuarial projections pro-
vided by the trustees of the Combined Benefit Fund 
referred to in paragraph (2)(A), that amounts will be avail-
able under paragraph (1), after the transfer, for the next 
fiscal year for making the transfer under paragraph (2)(A). 
‘‘(B) RATE OF CONTRIBUTIONS OF OBLIGORS.—
‘‘(i) IN GENERAL.—
‘‘(I) RATE.—A transfer under paragraph (2)(C) 
shall not be made for a calendar year unless the 
persons that are obligated to contribute to the 
plan referred to in paragraph (2)(C) on the date 
of the transfer are obligated to make the contribu-
tions at rates that are no less than those in effect
H. R. 6111—92
on the date which is 30 days before the date of 
enactment of this subsection. 
‘‘(II) 
APPLICATION.—The 
contributions 
described in subclause (I) shall be applied first 
to the provision of benefits to those plan bene-
ficiaries who are not described in paragraph 
(2)(C)(ii). 
‘‘(ii) INITIAL CONTRIBUTIONS.—
‘‘(I) IN GENERAL.—From the date of enactment 
of the Surface Mining Control and Reclamation 
Act Amendments of 2006 through December 31, 
2010, the persons that, on the date of enactment 
of that Act, are obligated to contribute to the plan 
referred to in paragraph (2)(C) shall be obligated, 
collectively, to make contributions equal to the 
amount described in paragraph (2)(C), less the 
amount actually transferred due to the operation 
of subparagraph (C). 
‘‘(II) FIRST
CALENDAR
YEAR.—Calendar year 
2006 is the first calendar year for which contribu-
tions are required under this clause. 
‘‘(III) AMOUNT OF CONTRIBUTION FOR 2006.—
Except as provided in subclause (IV), the amount 
described in paragraph (2)(C) for calendar year 
2006 shall be calculated as if paragraph (2)(C) 
had been in effect during 2005. 
‘‘(IV) LIMITATION.—The contributions required 
under this clause for calendar year 2006 shall 
not exceed the amount necessary for solvency of 
the plan described in paragraph (2)(C), measured 
as of December 31, 2006, and taking into account 
all assets held by the plan as of that date. 
‘‘(iii) DIVISION.—The collective annual contribution 
obligation required under clause (ii) shall be divided 
among the persons subject to the obligation, and 
applied uniformly, based on the hours worked for which 
contributions referred to in clause (i) would be owed. 
‘‘(C) PHASE-IN OF TRANSFERS.—For each of calendar 
years 2008 through 2010, the transfers required under 
subparagraphs (B) and (C) of paragraph (2) shall equal 
the following amounts: 
‘‘(i) For calendar year 2008, the Secretary shall 
make transfers equal to 25 percent of the amounts 
that would otherwise be required under subparagraphs 
(B) and (C) of paragraph (2). 
‘‘(ii) For calendar year 2009, the Secretary shall 
make transfers equal to 50 percent of the amounts 
that would otherwise be required under subparagraphs 
(B) and (C) of paragraph (2). 
‘‘(iii) For calendar year 2010, the Secretary shall 
make transfers equal to 75 percent of the amounts 
that would otherwise be required under subparagraphs 
(B) and (C) of paragraph (2). 
‘‘(i) FUNDING.—
‘‘(1) IN
GENERAL.—Subject to paragraph (3), out of any 
funds in the Treasury not otherwise appropriated, the Secretary
H. R. 6111—93
of the Treasury shall transfer to the plans described in sub-
section (h)(2) such sums as are necessary to pay the following 
amounts: 
‘‘(A) To the Combined Fund (as defined in section 
9701(a)(5) of the Internal Revenue Code of 1986 and 
referred to in this paragraph as the ‘Combined Fund’), 
the amount that the trustees of the Combined Fund esti-
mate will be expended from premium accounts maintained 
by the Combined Fund for the fiscal year to provide benefits 
for beneficiaries who are unassigned beneficiaries solely 
as a result of the application of section 9706(h)(1) of the 
Internal Revenue Code of 1986, subject to the following 
limitations: 
‘‘(i) For fiscal year 2008, the amount paid under 
this subparagraph shall equal—
‘‘(I) the amount described in subparagraph (A); 
minus 
‘‘(II) the amounts required under section 
9706(h)(3)(A) of the Internal Revenue Code of 
1986. 
‘‘(ii) For fiscal year 2009, the amount paid under 
this subparagraph shall equal—
‘‘(I) the amount described in subparagraph (A); 
minus 
‘‘(II) the amounts required under section 
9706(h)(3)(B) of the Internal Revenue Code of 
1986. 
‘‘(iii) For fiscal year 2010, the amount paid under 
this subparagraph shall equal—
‘‘(I) the amount described in subparagraph (A); 
minus 
‘‘(II) the amounts required under section 
9706(h)(3)(C) of the Internal Revenue Code of 
1986. 
‘‘(B) On certification by the trustees of any plan 
described in subsection (h)(2) that the amount available 
for transfer by the Secretary pursuant to this section (deter-
mined after application of any limitation under subsection 
(h)(5)) is less than the amount required to be transferred, 
to the plan the amount necessary to meet the requirement 
of subsection (h)(2). 
‘‘(C) To the Combined Fund, $9,000,000 on October 
1, 2007, $9,000,000 on October 1, 2008, and $9,000,000 
on October 1, 2009 (which amounts shall not be exceeded) 
to provide a refund of any premium (as described in section 
9704(a) of the Internal Revenue Code of 1986) paid on 
or before September 7, 2000, to the Combined Fund, plus 
interest on the premium calculated at the rate of 7.5 per-
cent per year, on a proportional basis and to be paid 
not later than 60 days after the date on which each pay-
ment is received by the Combined Fund, to those signatory 
operators (to the extent that the Combined Fund has not 
previously returned the premium amounts to the opera-
tors), or any related persons to the operators (as defined 
in section 9701(c) of the Internal Revenue Code of 1986), 
or their heirs, successors, or assigns who have been denied
H. R. 6111—94
the refunds as the result of final judgments or settlements 
if—
‘‘(i) prior to the date of enactment of this para-
graph, the signatory operator (or any related person 
to the operator)—
‘‘(I) had all of its beneficiary assignments made 
under section 9706 of the Internal Revenue Code 
of 1986 voided by the Commissioner of the Social 
Security Administration; and 
‘‘(II) was subject to a final judgment or final 
settlement of litigation adverse to a claim by the 
operator that the assignment of beneficiaries under 
section 9706 of the Internal Revenue Code of 1986 
was unconstitutional as applied to the operator; 
and 
‘‘(ii) on or before September 7, 2000, the signatory 
operator (or any related person to the operator) had 
paid to the Combined Fund any premium amount that 
had not been refunded. 
‘‘(2) PAYMENTS TO STATES AND INDIAN TRIBES.—Subject to 
paragraph (3), out of any funds in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall transfer to 
the Secretary of the Interior for distribution to States and 
Indian tribes such sums as are necessary to pay amounts 
described in paragraphs (1)(A) and (2)(A) of section 411(h). 
‘‘(3) LIMITATIONS.—
‘‘(A) CAP.—The total amount transferred under this 
subsection for any fiscal year shall not exceed $490,000,000. 
‘‘(B) INSUFFICIENT AMOUNTS.—In a case in which the 
amount required to be transferred without regard to this 
paragraph exceeds the maximum annual limitation in 
subparagraph (A), the Secretary shall adjust the transfers 
of funds so that—
‘‘(i) each transfer for the fiscal year is a percentage 
of the amount described; 
‘‘(ii) the amount is determined without regard to 
subsection (h)(5)(A); and 
‘‘(iii) the percentage transferred is the same for 
all transfers made under this subsection for the fiscal 
year. 
‘‘(4) AVAILABILITY OF FUNDS.—Funds shall be transferred 
under paragraphs (1) and (2) beginning in fiscal year 2008 
and each fiscal year thereafter, and shall remain available 
until expended.’’. 
SEC. 203. OBJECTIVES OF FUND. 
Section 403 of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1233) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) the protection’’ and inserting 
the following: 
‘‘(1)(A) the protection;’’; 
(ii) in subparagraph (A) (as designated by clause 
(i)), by striking ‘‘general welfare,’’; and 
(iii) by adding at the end the following:
H. R. 6111—95
‘‘(B) the restoration of land and water resources and the 
environment that—
‘‘(i) have been degraded by the adverse effects of coal 
mining practices; and 
‘‘(ii) are adjacent to a site that has been or will be 
remediated under subparagraph (A);’’; 
(B) in paragraph (2)—
(i) by striking ‘‘(2) the protection’’ and inserting 
the following: 
‘‘(2)(A) the protection’’; 
(ii) in subparagraph (A) (as designated by clause 
(i), by striking ‘‘health, safety, and general welfare’’ 
and inserting ‘‘health and safety’’; and 
(iii) by adding at the end the following: 
‘‘(B) the restoration of land and water resources and the 
environment that—
‘‘(i) have been degraded by the adverse effects of coal 
mining practices; and 
‘‘(ii) are adjacent to a site that has been or will be 
remediated under subparagraph (A); and’’; 
(C) in paragraph (3), by striking the semicolon at the 
end and inserting a period; and 
(D) by striking paragraphs (4) and (5); 
(2) in subsection (b)—
(A) by striking the subsection heading and inserting 
‘‘WATER SUPPLY RESTORATION.—’’; and 
(B) in paragraph (1), by striking ‘‘up to 30 percent 
of the’’; and 
(3) in the second sentence of subsection (c), by inserting 
‘‘, subject to the approval of the Secretary,’’ after ‘‘amendments’’. 
SEC. 204. RECLAMATION OF RURAL LAND. 
(a) ADMINISTRATION.—Section 406(h) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended 
by striking ‘‘Soil Conservation Service’’ and inserting ‘‘Natural 
Resources Conservation Service’’. 
(b) AUTHORIZATION
OF APPROPRIATIONS
FOR CARRYING OUT 
RURAL LAND RECLAMATION.—Section 406 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1236) is amended 
by adding at the end the following: 
‘‘(i) There are authorized to be appropriated to the Secretary 
of Agriculture, from amounts in the Treasury other than amounts 
in the fund, such sums as may be necessary to carry out this 
section.’’. 
SEC. 205. LIENS. 
Section 408(a) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1238) is amended in the last sentence 
by striking ‘‘who owned the surface prior to May 2, 1977, and’’. 
SEC. 206. CERTIFICATION. 
Section 411 of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1240a) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ before the first sentence; and 
(B) by adding at the end the following: 
‘‘(2)(A) The Secretary may, on the initiative of the Secretary, 
make the certification referred to in paragraph (1) on behalf of
H. R. 6111—96
any State or Indian tribe referred to in paragraph (1) if on the 
basis of the inventory referred to in section 403(c) all reclamation 
projects relating to the priorities described in section 403(a) for 
eligible land and water pursuant to section 404 in the State or 
tribe have been completed. 
‘‘(B) The Secretary shall only make the certification after notice 
in the Federal Register and opportunity for public comment.’’; and 
(2) by adding at the end the following: 
‘‘(h) PAYMENTS TO STATES AND INDIAN TRIBES.—
‘‘(1) IN GENERAL.—
‘‘(A) PAYMENTS.—
‘‘(i) 
IN
GENERAL.—Notwithstanding 
section 
401(f)(3)(B), from funds referred to in section 402(i)(2), 
the Secretary shall make payments to States or Indian 
tribes for the amount due for the aggregate unappropri-
ated amount allocated to the State or Indian tribe 
under subparagraph (A) or (B) of section 402(g)(1). 
‘‘(ii) CONVERSION
AS
EQUIVALENT
PAYMENTS.—
Amounts allocated under subparagraph (A) or (B) of 
section 402(g)(1) shall be reallocated to the allocation 
established in section 402(g)(5) in amounts equivalent 
to payments made to States or Indian tribes under 
this paragraph. 
‘‘(B) AMOUNT
DUE.—In this paragraph, the term 
‘amount due’ means the unappropriated amount allocated 
to a State or Indian tribe before October 1, 2007, under 
subparagraph (A) or (B) of section 402(g)(1). 
‘‘(C) SCHEDULE.—Payments under subparagraph (A) 
shall be made in 7 equal annual installments, beginning 
with fiscal year 2008. 
‘‘(D) USE OF FUNDS.—
‘‘(i) CERTIFIED STATES AND INDIAN TRIBES.—A State 
or Indian tribe that makes a certification under sub-
section (a) in which the Secretary concurs shall use 
any amounts provided under this paragraph for the 
purposes established by the State legislature or tribal 
council of the Indian tribe, with priority given for 
addressing the impacts of mineral development. 
‘‘(ii) UNCERTIFIED STATES AND INDIAN TRIBES.—A 
State or Indian tribe that has not made a certification 
under subsection (a) in which the Secretary has con-
curred shall use any amounts provided under this para-
graph for the purposes described in section 403. 
‘‘(2) SUBSEQUENT STATE AND INDIAN TRIBE SHARE FOR CER-
TIFIED STATES AND INDIAN TRIBES.—
‘‘(A) 
IN
GENERAL.—Notwithstanding 
section 
401(f)(3)(B), from funds referred to in section 402(i)(2), 
the Secretary shall pay to each certified State or Indian 
tribe an amount equal to the sum of the aggregate unappro-
priated amount allocated on or after October 1, 2007, to 
the certified State or Indian tribe under subparagraph 
(A) or (B) of section 402(g)(1). 
‘‘(B) CERTIFIED STATE OR INDIAN TRIBE DEFINED.—In 
this paragraph the term ‘certified State or Indian tribe’ 
means a State or Indian tribe for which a certification 
is made under subsection (a) in which the Secretary con-
curs.
H. R. 6111—97
‘‘(3) MANNER OF PAYMENT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), pay-
ments to States or Indian tribes under this subsection 
shall be made without regard to any limitation in section 
401(d) and concurrently with payments to States under 
that section. 
‘‘(B) INITIAL PAYMENTS.—The first 3 payments made 
to any State or Indian tribe shall be reduced to 25 percent, 
50 percent, and 75 percent, respectively, of the amounts 
otherwise required under paragraph (2)(A). 
‘‘(C) INSTALLMENTS.—Amounts withheld from the first 
3 annual installments as provided under subparagraph 
(B) shall be paid in 2 equal annual installments beginning 
with fiscal year 2018. 
‘‘(4) REALLOCATION.—
‘‘(A) IN GENERAL.—The amount allocated to any State 
or Indian tribe under subparagraph (A) or (B) of section 
402(g)(1) that is paid to the State or Indian tribe as a 
result of a payment under paragraph (1) or (2) shall be 
reallocated and available for grants under section 402(g)(5). 
‘‘(B) ALLOCATION.—The grants shall be allocated based 
on the amount of coal historically produced before August 
3, 1977, in the same manner as under section 402(g)(5).’’. 
SEC. 207. REMINING INCENTIVES. 
Title IV of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 415. REMINING INCENTIVES. 
‘‘(a) IN GENERAL.—Notwithstanding any other provision of this 
Act, the Secretary may, after opportunity for public comment, 
promulgate regulations that describe conditions under which 
amounts in the fund may be used to provide incentives to promote 
remining of eligible land under section 404 in a manner that 
leverages the use of amounts from the fund to achieve more rec-
lamation with respect to the eligible land than would be achieved 
without the incentives. 
‘‘(b) REQUIREMENTS.—Any regulations promulgated under sub-
section (a) shall specify that the incentives shall apply only if 
the Secretary determines, with the concurrence of the State regu-
latory authority referred to in title V, that, without the incentives, 
the eligible land would not be likely to be remined and reclaimed. 
‘‘(c) INCENTIVES.—
‘‘(1) IN GENERAL.—Incentives that may be considered for 
inclusion in the regulations promulgated under subsection (a) 
include, but are not limited to—
‘‘(A) a rebate or waiver of the reclamation fees required 
under section 402(a); and 
‘‘(B) the use of amounts in the fund to provide financial 
assurance for remining operations in lieu of all or a portion 
of the performance bonds required under section 509. 
‘‘(2) LIMITATIONS.—
‘‘(A) USE.—A rebate or waiver under paragraph (1)(A) 
shall be used only for operations that—
‘‘(i) remove or reprocess abandoned coal mine 
waste; or
H. R. 6111—98
‘‘(ii) conduct remining activities that meet the 
priorities specified in paragraph (1) or (2) of section 
403(a). 
‘‘(B) AMOUNT.—The amount of a rebate or waiver pro-
vided as an incentive under paragraph (1)(A) to remine 
or reclaim eligible land shall not exceed the estimated 
cost of reclaiming the eligible land under this section.’’. 
SEC. 208. EXTENSION OF LIMITATION ON APPLICATION OF PROHIBI-
TION ON ISSUANCE OF PERMIT. 
Section 510(e) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1260(e)) is amended by striking the last 
sentence. 
SEC. 209. TRIBAL REGULATION OF SURFACE COAL MINING AND REC-
LAMATION OPERATIONS. 
(a) IN GENERAL.—Section 710 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1300) is amended by 
adding at the end the following: 
‘‘(j) TRIBAL REGULATORY AUTHORITY.—
‘‘(1) TRIBAL REGULATORY PROGRAMS.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, an Indian tribe may apply for, and obtain 
the approval of, a tribal program under section 503 regu-
lating in whole or in part surface coal mining and reclama-
tion operations on reservation land under the jurisdiction 
of the Indian tribe using the procedures of section 504(e). 
‘‘(B) REFERENCES TO STATE.—For purposes of this sub-
section and the implementation and administration of a 
tribal program under title V, any reference to a ‘State’ 
in this Act shall be considered to be a reference to a 
‘tribe’. 
‘‘(2) CONFLICTS OF INTEREST.—
‘‘(A) IN GENERAL.—The fact that an individual is a 
member of an Indian tribe does not in itself constitute 
a violation of section 201(f). 
‘‘(B) EMPLOYEES OF TRIBAL REGULATORY AUTHORITY.—
Any employee of a tribal regulatory authority shall not 
be eligible for a per capita distribution of any proceeds 
from coal mining operations conducted on Indian reserva-
tion lands under this Act. 
‘‘(3) SOVEREIGN IMMUNITY.—To receive primary regulatory 
authority under section 504(e), an Indian tribe shall waive 
sovereign immunity for purposes of section 520 and paragraph 
(4). 
‘‘(4) JUDICIAL REVIEW.—
‘‘(A) CIVIL ACTIONS.—
‘‘(i) IN GENERAL.—After exhausting all tribal rem-
edies with respect to a civil action arising under a 
tribal program approved under section 504(e), an 
interested party may file a petition for judicial review 
of the civil action in the United States circuit court 
for the circuit in which the surface coal mining oper-
ation named in the petition is located. 
‘‘(ii) SCOPE OF REVIEW.—
‘‘(I) QUESTIONS OF LAW.—The United States 
circuit court shall review de novo any questions 
of law under clause (i).
H. R. 6111—99
‘‘(II) FINDINGS OF FACT.—The United States 
circuit court shall review findings of fact under 
clause (i) using a clearly erroneous standard. 
‘‘(B) CRIMINAL ACTIONS.—Any criminal action brought 
under section 518 with respect to surface coal mining or 
reclamation operations on Indian reservation lands shall 
be brought in—
‘‘(i) the United States District Court for the District 
of Columbia; or 
‘‘(ii) the United States district court in which the 
criminal activity is alleged to have occurred. 
‘‘(5) GRANTS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), grants for developing, administering, and enforcing 
tribal programs approved in accordance with section 504(e) 
shall be provided to an Indian tribe in accordance with 
section 705. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
the Federal share of the costs of developing, administering, 
and enforcing an approved tribal program shall be 100 
percent. 
‘‘(6) REPORT.—Not later than 18 months after the date 
on which a tribal program is approved under subsection (e) 
of section 504, the Secretary shall submit to the appropriate 
committees of Congress a report, developed in cooperation with 
the applicable Indian tribe, on the tribal program that includes 
a recommendation of the Secretary on whether primary regu-
latory authority under that subsection should be expanded 
to include additional Indian lands.’’. 
(b) CONFORMING AMENDMENT.—Section 710(i) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1300(i)) 
is amended in the first sentence by striking ‘‘, except’’ and all 
that follows through ‘‘section 503’’. 
Subtitle B—Coal Industry Retiree Health 
Benefit Act 
SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST 
RELIEVED OF LIABILITY IF PREMIUMS PREPAID. 
(a) COMBINED BENEFIT FUND.—Section 9704 of the Internal 
Revenue Code of 1986 (relating to liability of assigned operators) 
is amended by adding at the end the following new subsection: 
‘‘(j) PREPAYMENT OF PREMIUM LIABILITY.—
‘‘(1) IN GENERAL.—If—
‘‘(A) a payment meeting the requirements of paragraph 
(3) is made to the Combined Fund by or on behalf of—
‘‘(i) any assigned operator to which this subsection 
applies, or 
‘‘(ii) any related person to any assigned operator 
described in clause (i), and 
‘‘(B) the common parent of the controlled group of 
corporations described in paragraph (2)(B) is jointly and 
severally liable for any premium under this section which 
(but for this subsection) would be required to be paid 
by the assigned operator or related person,
H. R. 6111—100
then such common parent (and no other person) shall be liable 
for such premium. 
‘‘(2) ASSIGNED OPERATORS TO WHICH SUBSECTION APPLIES.—
‘‘(A) IN GENERAL.—This subsection shall apply to any 
assigned operator if—
‘‘(i) the assigned operator (or a related person to 
the assigned operator)—
‘‘(I) made contributions to the 1950 UMWA 
Benefit Plan and the 1974 UMWA Benefit Plan 
for employment during the period covered by the 
1988 agreement; and 
‘‘(II) is not a 1988 agreement operator, 
‘‘(ii) the assigned operator (and all related persons 
to the assigned operator) are not actively engaged in 
the production of coal as of July 1, 2005, and 
‘‘(iii) the assigned operator was, as of July 20, 
1992, a member of a controlled group of corporations 
described in subparagraph (B). 
‘‘(B) CONTROLLED
GROUP
OF
CORPORATIONS.—A con-
trolled group of corporations is described in this subpara-
graph if the common parent of such group is a corporation 
the shares of which are publicly traded on a United States 
exchange. 
‘‘(C) COORDINATION WITH REPEAL OF ASSIGNMENTS.—
A person shall not fail to be treated as an assigned operator 
to which this subsection applies solely because the person 
ceases to be an assigned operator by reason of section 
9706(h)(1) if the person otherwise meets the requirements 
of this subsection and is liable for the payment of premiums 
under section 9706(h)(3). 
‘‘(D) CONTROLLED GROUP.—For purposes of this sub-
section, the term ‘controlled group of corporations’ has the 
meaning given such term by section 52(a). 
‘‘(3) REQUIREMENTS.—A payment meets the requirements 
of this paragraph if—
‘‘(A) the amount of the payment is not less than the 
present value of the total premium liability under this 
chapter with respect to the Combined Fund of the assigned 
operators or related persons described in paragraph (1) 
or their assignees, as determined by the operator’s or 
related person’s enrolled actuary (as defined in section 
7701(a)(35)) using actuarial methods and assumptions each 
of which is reasonable and which are reasonable in the 
aggregate, as determined by such enrolled actuary; 
‘‘(B) such enrolled actuary files with the Secretary 
of Labor a signed actuarial report containing—
‘‘(i) the date of the actuarial valuation applicable 
to the report; and 
‘‘(ii) a statement by the enrolled actuary signing 
the report that, to the best of the actuary’s knowledge, 
the report is complete and accurate and that in the 
actuary’s opinion the actuarial assumptions used are 
in the aggregate reasonably related to the experience 
of the operator and to reasonable expectations; and 
‘‘(C) 90 calendar days have elapsed after the report 
required by subparagraph (B) is filed with the Secretary 
of Labor, and the Secretary of Labor has not notified the
H. R. 6111—101
assigned operator in writing that the requirements of this 
paragraph have not been satisfied. 
‘‘(4) USE
OF
PREPAYMENT.—The Combined Fund shall—
‘‘(A) establish and maintain an account for each 
assigned operator or related person by, or on whose behalf, 
a payment described in paragraph (3) was made, 
‘‘(B) credit such account with such payment (and any 
earnings thereon), and 
‘‘(C) use all amounts in such account exclusively to 
pay premiums that would (but for this subsection) be 
required to be paid by the assigned operator. 
Upon termination of the obligations for the premium liability 
of any assigned operator or related person for which such 
account is maintained, all funds remaining in such account 
(and earnings thereon) shall be refunded to such person as 
may be designated by the common parent described in para-
graph (1)(B).’’. 
(b) INDIVIDUAL
EMPLOYER
PLANS.—Section 9711(c) of the 
Internal Revenue Code of 1986 (relating to joint and several 
liability) is amended to read as follows: 
‘‘(c) JOINT
AND SEVERAL LIABILITY
OF RELATED PERSONS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
each related person of a last signatory operator to which sub-
section (a) or (b) applies shall be jointly and severally liable 
with the last signatory operator for the provision of health 
care coverage described in subsection (a) or (b). 
‘‘(2) LIABILITY LIMITED IF SECURITY PROVIDED.—If—
‘‘(A) security meeting the requirements of paragraph 
(3) is provided by or on behalf of—
‘‘(i) any last signatory operator which is an 
assigned operator described in section 9704(j)(2), or 
‘‘(ii) any related person to any last signatory oper-
ator described in clause (i), and 
‘‘(B) the common parent of the controlled group of 
corporations described in section 9704(j)(2)(B) is jointly and 
severally liable for the provision of health care under this 
section which, but for this paragraph, would be required 
to be provided by the last signatory operator or related 
person, 
then, as of the date the security is provided, such common 
parent (and no other person) shall be liable for the provision 
of health care under this section which the last signatory oper-
ator or related person would otherwise be required to provide. 
Security may be provided under this paragraph without regard 
to whether a payment was made under section 9704(j). 
‘‘(3) SECURITY.—Security meets the requirements of this 
paragraph if—
‘‘(A) the security—
‘‘(i) is in the form of a bond, letter of credit, or 
cash escrow, 
‘‘(ii) is provided to the trustees of the 1992 UMWA 
Benefit Plan solely for the purpose of paying premiums 
for beneficiaries who would be described in section 
9712(b)(2)(B) if the requirements of this section were 
not met by the last signatory operator, and
H. R. 6111—102
‘‘(iii) is in an amount equal to 1 year of liability 
of the last signatory operator under this section, deter-
mined by using the average cost of such operator’s 
liability during the prior 3 calendar years; 
‘‘(B) the security is in addition to any other security 
required under any other provision of this title; and 
‘‘(C) the security remains in place for 5 years. 
‘‘(4) REFUNDS OF SECURITY.—The remaining amount of any 
security provided under this subsection (and earnings thereon) 
shall be refunded to the last signatory operator as of the earlier 
of—
‘‘(A) the termination of the obligations of the last signa-
tory operator under this section, or 
‘‘(B) the end of the 5-year period described in paragraph 
(4)(C).’’. 
(c) 1992 UMWA BENEFIT PLAN.—Section 9712(d)(4) of the 
Internal Revenue Code of 1986 (relating to joint and several 
liability) is amended by adding at the end the following new sen-
tence: ‘‘The provisions of section 9711(c)(2) shall apply to any last 
signatory operator described in such section (without regard to 
whether security is provided under such section, a payment is 
made under section 9704(j), or both) and if security meeting the 
requirements of section 9711(c)(3) is provided, the common parent 
described in section 9711(c)(2)(B) shall be exclusively responsible 
for any liability for premiums under this section which, but for 
this sentence, would be required to be paid by the last signatory 
operator or any related person.’’. 
(d) SUCCESSOR IN INTEREST.—Section 9701(c) of the Internal 
Revenue Code of 1986 (relating to terms relating to operators) 
is amended by adding at the end the following new paragraph: 
‘‘(8) SUCCESSOR IN INTEREST.—
‘‘(A) SAFE HARBOR.—The term ‘successor in interest’ 
shall not include any person who—
‘‘(i) is an unrelated person to an eligible seller 
described in subparagraph (C); and 
‘‘(ii) purchases for fair market value assets, or 
all of the stock, of a related person to such seller, 
in a bona fide, arm’s-length sale. 
‘‘(B) UNRELATED PERSON.—The term ‘unrelated person’ 
means a purchaser who does not bear a relationship to 
the eligible seller described in section 267(b). 
‘‘(C) ELIGIBLE SELLER.—For purposes of this paragraph, 
the term ‘eligible seller’ means an assigned operator 
described in section 9704(j)(2) or a related person to such 
assigned operator.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, except 
that the amendment made by subsection (d) shall apply to trans-
actions after the date of the enactment of this Act. 
SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF. 
(a) COMBINED FUND.—
(1) FEDERAL TRANSFERS.—Section 9705(b) of the Internal 
Revenue Code of 1986 (relating to transfers from Abandoned 
Mine Reclamation Fund) is amended—
(A) in paragraph (1), by striking ‘‘section 402(h)’’ and 
inserting ‘‘subsections (h) and (i) of section 402’’;