H. R. 4986—374 
(c) TERMINATION.—The requirement to submit reports under 
subsection (a) shall terminate on the date on which the Secretary 
of Defense, in coordination with the Director of National Intel-
ligence, submits to the congressional defense committees a certifi-
cation in writing that the Government of Iran has ceased to provide 
military support to anti-coalition forces that conduct attacks against 
coalition forces in Iraq. 
(d) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to authorize or otherwise speak to the use of the Armed 
Forces against Iran. 
SEC. 1226. SENSE OF CONGRESS ON THE CONSEQUENCES OF A FAILED 
STATE IN IRAQ. 
It is the sense of Congress that— 
(1) a failed state in Iraq will have a negative impact on 
the Middle East and United States interests in the region; 
and 
(2) the United States should pursue strategies to prevent 
a failed state in Iraq or to contain the negative effects of 
a failed state in Iraq. 
SEC. 1227. SENSE OF CONGRESS ON FEDERALISM IN IRAQ. 
It is the sense of Congress that— 
(1) policies supported by the United States in the pursuit 
of a political settlement in Iraq should be consistent with the 
wishes of the Iraqi people and should not violate the sovereignty 
of the nation of Iraq; 
(2) if the Iraqi people support a political settlement in 
Iraq based on the final provisions of the Constitution of Iraq 
that create a federal system of government and allow for the 
creation of federal regions, consistent with the wishes of the 
Iraqi people and their elected leaders, the United States should 
actively support such a political settlement in Iraq; 
(3) the active support referred to in paragraph (2) should 
include— 
(A) calling on the international community, including 
countries with troops in Iraq, the permanent 5 members 
of the United Nations Security Council, members of the 
Gulf Cooperation Council, and Iraq’s neighbors— 
(i) to support an Iraqi political settlement based 
on federalism; 
(ii) to acknowledge the sovereignty and territorial 
integrity of Iraq; and 
(iii) to fulfill commitments for the urgent delivery 
of significant assistance and debt relief to Iraq, espe-
cially those made by the member states of the Gulf 
Cooperation Council; and 
(B) convening a conference for Iraqis to reach an agree-
ment on a comprehensive political settlement based on 
the federalism law approved by the Iraqi Parliament on 
October 11, 2006; 
(4) the United States should urge the Government of Iraq 
to quickly agree upon and implement a law providing for the 
equitable distribution of oil revenues, which is a critical compo-
nent of a comprehensive political settlement in Iraq, including 
a potential settlement based upon federalism;
H. R. 4986—375 
(5) the steps described in paragraphs (2), (3), and (4) could 
lead to an Iraq that is stable, not a haven for terrorists, and 
not a threat to its neighbors; 
(6) in pursuit of a political settlement in Iraq, whether 
based on federalism or not, the United States should call on 
Iraq’s neighbors to pledge not to militarily intervene in or 
destabilize Iraq; and 
(7) nothing in this Act should be construed in any way 
to infringe on the sovereign rights of the nation of Iraq or 
to imply that the United States wishes to impose a political 
settlement in Iraq based on federalism if such a political settle-
ment is contrary to the wishes of the Iraqi people. 
SEC. 1228. TRACKING AND MONITORING OF DEFENSE ARTICLES PRO-
VIDED TO THE GOVERNMENT OF IRAQ AND OTHER 
INDIVIDUALS AND GROUPS IN IRAQ. 
(a) EXPORT AND TRANSFER CONTROL POLICY.—The President 
shall implement a policy to control the export and transfer of 
defense articles into Iraq, including implementation of the registra-
tion and monitoring system under subsection (c). 
(b) REQUIREMENT
TO
IMPLEMENT
CONTROL
SYSTEM.—No 
defense articles may be provided to the Government of Iraq or 
any other group, organization, citizen, or resident of Iraq until 
the President certifies to the specified congressional committees 
that a registration and monitoring system meeting the requirements 
set forth in subsection (c) has been established. 
(c) REGISTRATION AND MONITORING SYSTEM.—The registration 
and monitoring system required under this subsection shall 
include— 
(1) the registration of the serial numbers of all small arms 
to be provided to the Government of Iraq or to other groups, 
organizations, citizens, or residents of Iraq; 
(2) a program of end-use monitoring of all lethal defense 
articles provided to such entities or individuals; and 
(3) a detailed record of the origin, shipping, and distribution 
of all defense articles transferred under the Iraq Security Forces 
Fund or any other security assistance program to such entities 
or individuals. 
(d) REVIEW; EXEMPTION.— 
(1) REVIEW.—The President shall periodically review the 
items subject to the registration and monitoring requirements 
under subsection (c) to determine what items, if any, should 
no longer be subject to such registration and monitoring 
requirements. The President shall transmit to the specified 
congressional committees the results of each review conducted 
under this paragraph. 
(2) EXEMPTION.—The President may exempt an item from 
the registration and monitoring requirements under subsection 
(c) beginning on the date that is 30 days after the date on 
which the President provides notice of the proposed exemption 
to the specified congressional committees in accordance with 
the procedures applicable to reprogramming notifications under 
section 634A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2394–1(a)). Such notice shall describe any controls to be 
imposed on such item under any other provision of law. 
(e) DEFINITIONS.—In this section:
H. R. 4986—376 
(1) DEFENSE ARTICLE.—The term ‘‘defense article’’ has the 
meaning given the term in section 644(d) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2403(d)). 
(2) SMALL ARMS.—The term ‘‘small arms’’ means— 
(A) handguns; 
(B) shoulder-fired weapons; 
(C) light automatic weapons up to and including .50 
caliber machine guns; 
(D) recoilless rifles up to and including 106mm; 
(E) mortars up to and including 81mm; 
(F) rocket launchers, man-portable; 
(G) grenade launchers, rifle and shoulder fired; and 
(H) individually-operated weapons which are portable 
or can be fired without special mounts or firing devices 
and which have potential use in civil disturbances and 
are vulnerable to theft. 
(3) SPECIFIED
CONGRESSIONAL
COMMITTEES.—The term 
‘‘specified congressional committees’’ means— 
(A) the Committee on Foreign Affairs and the Com-
mittee on Armed Services of the House of Representatives; 
and 
(B) the Committee on Foreign Relations, the Com-
mittee on Armed Services, and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), this 
section shall take effect 180 days after the date of the enactment 
of this Act. 
(2) EXCEPTION.—The President may delay the effective date 
of this section by an additional period of up to 90 days if 
the President certifies in writing to the specified congressional 
committees for such additional period that it is in the vital 
interest of the United States to do so and includes in the 
certification a description of such vital interest. 
SEC. 
1229. 
SPECIAL 
INSPECTOR 
GENERAL 
FOR 
AFGHANISTAN 
RECONSTRUCTION. 
(a) PURPOSES.—The purposes of this section are as follows: 
(1) To provide for the independent and objective conduct 
and supervision of audits and investigations relating to the 
programs and operations funded with amounts appropriated 
or otherwise made available for the reconstruction of Afghani-
stan. 
(2) To provide for the independent and objective leadership 
and coordination of, and recommendations on, policies designed 
to— 
(A) promote economy efficiency, and effectiveness in 
the administration of the programs and operations 
described in paragraph (1); and 
(B) prevent and detect waste, fraud, and abuse in 
such programs and operations. 
(3) To provide for an independent and objective means 
of keeping the Secretary of State and the Secretary of Defense 
fully and currently informed about problems and deficiencies 
relating to the administration of such programs and operations 
and the necessity for and progress on corrective action.
H. R. 4986—377 
(b) OFFICE OF INSPECTOR GENERAL.—There is hereby estab-
lished the Office of the Special Inspector General for Afghanistan 
Reconstruction to carry out the purposes of subsection (a). 
(c) APPOINTMENT OF INSPECTOR GENERAL; REMOVAL.— 
(1) APPOINTMENT.—The head of the Office of the Special 
Inspector General for Afghanistan Reconstruction is the Special 
Inspector General for Afghanistan Reconstruction (in this sec-
tion referred to as the ‘‘Inspector General’’), who shall be 
appointed by the President. The President may appoint the 
Special Inspector General for Iraq Reconstruction to serve as 
the Special Inspector General for Afghanistan Reconstruction, 
in which case the Special Inspector General for Iraq Reconstruc-
tion shall have all of the duties, responsibilities, and authorities 
set forth under this section with respect to such appointed 
position for the purpose of carrying out this section. 
(2) QUALIFICATIONS.—The appointment of the Inspector 
General shall be made solely on the basis of integrity and 
demonstrated ability in accounting, auditing, financial analysis, 
law, management analysis, public administration, or investiga-
tions. 
(3) DEADLINE FOR APPOINTMENT.—The appointment of an 
individual as Inspector General shall be made not later than 
30 days after the date of the enactment of this Act. 
(4) COMPENSATION.—The annual rate of basic pay of the 
Inspector General shall be the annual rate of basic pay provided 
for positions at level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
(5) PROHIBITION ON POLITICAL ACTIVITIES.—For purposes 
of section 7324 of title 5, United States Code, the Inspector 
General shall not be considered an employee who determines 
policies to be pursued by the United States in the nationwide 
administration of Federal law. 
(6) REMOVAL.—The Inspector General shall be removable 
from office in accordance with the provisions of section 3(b) 
of the Inspector General Act of 1978 (5 U.S.C. App.). 
(d) ASSISTANT INSPECTORS GENERAL.—The Inspector General 
shall, in accordance with applicable laws and regulations governing 
the civil service— 
(1) appoint an Assistant Inspector General for Auditing 
who shall have the responsibility for supervising the perform-
ance of auditing activities relating to programs and operations 
supported by amounts appropriated or otherwise made avail-
able for the reconstruction of Afghanistan; and 
(2) appoint an Assistant Inspector General for Investiga-
tions who shall have the responsibility for supervising the 
performance of investigative activities relating to such pro-
grams and operations. 
(e) SUPERVISION.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Inspector General shall report directly to, and be under the 
general supervision of, the Secretary of State and the Secretary 
of Defense. 
(2) INDEPENDENCE
TO
CONDUCT
INVESTIGATIONS
AND 
AUDITS.—No officer of the Department of Defense, the Depart-
ment of State, or the United States Agency for International 
Development shall prevent or prohibit the Inspector General