H. R. 1591—66
and Pandemic Influenza Act, 2006 (Public Law 109–148; 119 
Stat. 2680); 
(2) an agricultural disaster assistance provision contained 
in the announcement of the Secretary on January 26, 2006, 
or August 29, 2006; or 
(3) the Emergency Supplemental Appropriations Act for 
Defense, the Global War on Terror, and Hurricane Recovery, 
2006 (Public Law 109–234; 120 Stat. 418). 
(b) ADJUSTED GROSS INCOME LIMITATION.—Section 1001D of 
the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall apply with 
respect to assistance provided under sections 5101, 5102, and 5103. 
SEC. 5105. ADMINISTRATION. 
(a) REGULATIONS.—The Secretary of Agriculture may promul-
gate such regulations as are necessary to implement sections 5101 
and 5102. 
(b) PROCEDURE.—The promulgation of the implementing regula-
tions and the administration of sections 5101 and 5102 shall be 
made without regard to—
(1) the notice and comment provisions of section 553 of 
title 5, United States Code; 
(2) the Statement of Policy of the Secretary of Agriculture 
effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 
of proposed rulemaking and public participation in rulemaking; 
and 
(3) chapter 35 of title 44, United States Code (commonly 
known as the ‘‘Paperwork Reduction Act’’). 
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In car-
rying out this section, the Secretary of Agriculture shall use the 
authority provided under section 808 of title 5, United States Code. 
(d) USE OF COMMODITY CREDIT CORPORATION; LIMITATION.—
In implementing sections 5101 and 5102, the Secretary of Agri-
culture may use the facilities, services, and authorities of the Com-
modity Credit Corporation. The Corporation shall not make any 
expenditures to carry out sections 5101 and 5102 unless funds 
have been specifically appropriated for such purpose. 
SEC. 5106. MILK INCOME LOSS CONTRACT PROGRAM. 
Section 1502(c)(3) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7982(c)(3)) is amended—
(1) in subparagraph (A), by adding ‘‘and’’ at the end; 
(2) in subparagraph (B), by striking ‘‘August’’ and all that 
follows through the end and inserting ‘‘September 30, 2007, 
34 percent.’’; and 
(3) by striking subparagraph (C). 
SEC. 5107. DAIRY ASSISTANCE. 
There is hereby appropriated $20,000,000 to make payments 
to dairy producers for dairy production losses in disaster counties, 
as defined in section 5102 of this title, to remain available until 
expended. 
SEC. 5108. NONINSURED CROP ASSISTANCE PROGRAM. 
For states in which there is a shortage of claims adjustors, 
as determined by the Secretary, the Secretary shall permit the 
use of one claims adjustor certified by the Secretary in carrying 
out 7 CFR 1437.401.
H. R. 1591—67
SEC. 5109. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT 
AND SEASONAL FARMWORKERS. 
There is hereby appropriated $21,000,000 to carry out section 
2281 of the Food, Agriculture, Conservation and Trade Act of 1990 
(42 U.S.C. 5177a), to remain available until expended. 
SEC. 5110. CONSERVATION SECURITY PROGRAM. 
Section 20115 of Public Law 110–5 is amended by striking 
‘‘section 726’’ and inserting in lieu thereof ‘‘section 726; section 
741’’. 
SEC. 5111. ADMINISTRATIVE EXPENSES. 
There is hereby appropriated $30,000,000 for the ‘‘Farm Service 
Agency, Salaries and Expenses’’, to remain available until Sep-
tember 30, 2008. 
SEC. 5112. CONTRACT WAIVER. 
In carrying out crop disaster and livestock assistance in this 
title, the Secretary shall require forage producers to have partici-
pated in a crop insurance pilot program or the Non-Insured Crop 
Disaster Assistance Program during the crop year for which com-
pensation is received. 
TITLE VI 
ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS 
DEPARTMENT OF HEALTH AND HUMAN SERVICES 
CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE 
CHILDREN’S HEALTH INSURANCE FUND 
For an additional amount to provide additional allotments to 
remaining shortfall States under section 2104(h)(4) of the Social 
Security Act, as inserted by section 6001, such sums as may be 
necessary, but not to exceed $650,000,000 for fiscal year 2007, 
to remain available until expended. 
SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUNDING SHORT-
FALLS FOR FISCAL YEAR 2007. 
(a) ELIMINATION
OF REMAINDER
OF FUNDING SHORTFALLS, 
TIERED MATCH, AND OTHER LIMITATION ON EXPENDITURES.—Section 
2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as added 
by section 201(a) of the National Institutes of Health Reform Act 
of 2006 (Public Law 109–482), is amended—
(1) in the heading for paragraph (2), by striking 
‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; and 
(2) by striking paragraph (4) and inserting the following: 
‘‘(4) ADDITIONAL
AMOUNTS
TO
ELIMINATE
REMAINDER
OF 
FISCAL YEAR 2007 FUNDING SHORTFALLS.—
‘‘(A) IN
GENERAL.—From the amounts provided in 
advance in appropriations Acts, the Secretary shall allot 
to each remaining shortfall State described in subpara-
graph (B) such amount as the Secretary determines will 
eliminate the estimated shortfall described in such 
subparagraph for the State for fiscal year 2007. 
‘‘(B) REMAINING
SHORTFALL
STATE
DESCRIBED.—For 
purposes of subparagraph (A), a remaining shortfall State
H. R. 1591—68
is a State with a State child health plan approved under 
this title for which the Secretary estimates, on the basis 
of the most recent data available to the Secretary as of 
the date of the enactment of this paragraph, that the 
projected Federal expenditures under such plan for the 
State for fiscal year 2007 will exceed the sum of—
‘‘(i) the amount of the State’s allotments for each 
of fiscal years 2005 and 2006 that will not be expended 
by the end of fiscal year 2006; 
‘‘(ii) the amount of the State’s allotment for fiscal 
year 2007; and 
‘‘(iii) the amounts, if any, that are to be redistrib-
uted to the State during fiscal year 2007 in accordance 
with paragraphs (1) and (2).’’. 
(b) CONFORMING AMENDMENTS.—Section 2104(h) of such Act 
(42 U.S.C. 1397dd(h)) (as so added), is amended—
(1) in paragraph (1)(B), by striking ‘‘subject to paragraph 
(4)(B) and’’; 
(2) in paragraph (2)(B), by striking ‘‘subject to paragraph 
(4)(B) and’’; 
(3) in paragraph (5)(A), by striking ‘‘and (3)’’ and inserting 
‘‘(3), and (4)’’; and 
(4) in paragraph (6)—
(A) in the first sentence—
(i) by inserting ‘‘or allotted’’ after ‘‘redistributed’’; 
and 
(ii) by inserting ‘‘or allotments’’ after ‘‘redistribu-
tions’’; and 
(B) by striking ‘‘and (3)’’ and inserting ‘‘(3), and (4)’’. 
SEC. 6002. (a) PROHIBITION.—
(1) LIMITATION
ON
SECRETARIAL
AUTHORITY.—Notwith-
standing any other provision of law, the Secretary of Health 
and Human Services shall not, prior to the date that is 1 
year after the date of enactment of this Act, take any action 
(through promulgation of regulation, issuance of regulatory 
guidance, or other administrative action) to—
(A) finalize or otherwise implement provisions con-
tained in the proposed rule published on January 18, 2007, 
on pages 2236 through 2248 of volume 72, Federal Register 
(relating to parts 433, 447, and 457 of title 42, Code of 
Federal Regulations); 
(B) promulgate or implement any rule or provisions 
similar to the provisions described in subparagraph (A) 
pertaining to the Medicaid program established under title 
XIX of the Social Security Act or the State Children’s 
Health Insurance Program established under title XXI of 
such Act; or 
(C) promulgate or implement any rule or provisions 
restricting payments for graduate medical education under 
the Medicaid program. 
(2) CONTINUATION
OF
OTHER
SECRETARIAL
AUTHORITY.—
The Secretary of Health and Human Service shall not be prohib-
ited during the period described in paragraph (1) from taking 
any action (through promulgation of regulation, issuance of 
regulatory guidance, or other administrative action) to enforce 
a provision of law in effect as of the date of enactment of 
this Act with respect to the Medicaid program or the State
H. R. 1591—69
Children’s Health Insurance Program, or to promulgate or 
implement a new rule or provision during such period with 
respect to such programs, other than a rule or provision 
described in paragraph (1) and subject to the prohibition set 
forth in that paragraph. 
(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT PRESCRIPTION 
PADS UNDER THE MEDICAID PROGRAM.—
(1) IN
GENERAL.—Section 1903(i) of the Social Security 
Act (42 U.S.C. 1396b(i)) is amended—
(A) by striking ‘‘or’’ at the end of paragraph (21); 
(B) by striking the period at the end of paragraph 
(22) and inserting ‘‘; or’’; and 
(C) by inserting after paragraph (22) the following 
new paragraph: 
‘‘(23) with respect to amounts expended for medical assist-
ance for covered outpatient drugs (as defined in section 
1927(k)(2)) for which the prescription was executed in written 
(and non-electronic) form unless the prescription was executed 
on a tamper-resistant pad.’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall apply to prescriptions executed after September 30, 
2007. 
(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIVERS.—
(1) AUTHORITY TO CONTINUE TO OPERATE WAIVERS.—Not-
withstanding any other provision of law, any State that is 
operating a Pharmacy Plus waiver described in paragraph (2) 
which would otherwise expire on June 30, 2007, may elect 
to continue to operate the waiver through December 31, 2009. 
(2) PHARMACY PLUS WAIVER DESCRIBED.—For purposes of 
paragraph (1), a Pharmacy Plus waiver described in this para-
graph is a waiver approved by the Secretary of Health and 
Human Services under the authority of section 1115 of the 
Social Security Act (42 U.S.C. 1315) that provides coverage 
for prescription drugs for individuals who have attained age 
65 and whose family income does not exceed 200 percent of 
the poverty line (as defined in section 2110(c)(5) of such Act 
(42 U.S.C. 1397jj(c)(5)). 
TITLE VII 
FAIR MINIMUM WAGE AND TAX RELIEF 
Subtitle A—Fair Minimum Wage 
SEC. 7000. SHORT TITLE. 
This subtitle may be cited as the ‘‘Fair Minimum Wage Act 
of 2007’’. 
SEC. 7001. MINIMUM WAGE. 
(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows: 
‘‘(1) except as otherwise provided in this section, not less 
than—
‘‘(A) $5.85 an hour, beginning on the 60th day after 
the date of enactment of the Fair Minimum Wage Act 
of 2007;
H. R. 1591—70
‘‘(B) $6.55 an hour, beginning 12 months after that 
60th day; and 
‘‘(C) $7.25 an hour, beginning 24 months after that 
60th day;’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 60 days after the date of enactment of this Act. 
SEC. 7002. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 
AND THE COMMONWEALTH OF THE NORTHERN MARIANA 
ISLANDS. 
(a) IN GENERAL.—Section 6 of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 206) shall apply to American Samoa and the 
Commonwealth of the Northern Mariana Islands. 
(b) TRANSITION.—Notwithstanding subsection (a)—
(1) the minimum wage applicable to the Commonwealth 
of the Northern Mariana Islands under section 6(a)(1) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 
be—
(A) $3.55 an hour, beginning on the 60th day after 
the date of enactment of this Act; and 
(B) increased by $0.50 an hour (or such lesser amount 
as may be necessary to equal the minimum wage under 
section 6(a)(1) of such Act), beginning 1 year after the 
date of enactment of this Act and each year thereafter 
until the minimum wage applicable to the Commonwealth 
of the Northern Mariana Islands under this paragraph 
is equal to the minimum wage set forth in such section; 
and 
(2) the minimum wage applicable to American Samoa under 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) shall be—
(A) the applicable wage rate in effect for each industry 
and classification under section 697 of title 29, Code of 
Federal Regulations, on the date of enactment of this Act; 
(B) increased by $0.50 an hour, beginning on the 60th 
day after the date of enactment of this Act; and 
(C) increased by $0.50 an hour (or such lesser amount 
as may be necessary to equal the minimum wage under 
section 6(a)(1) of such Act), beginning 1 year after the 
date of enactment of this Act and each year thereafter 
until the minimum wage applicable to American Samoa 
under this paragraph is equal to the minimum wage set 
forth in such section. 
(c) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—The Fair Labor Standards Act of 1938 
is amended—
(A) by striking sections 5 and 8; and 
(B) in section 6(a), by striking paragraph (3) and 
redesignating paragraphs (4) and (5) as paragraphs (3) 
and (4), respectively. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect 60 days after the date of enactment 
of this Act. 
SEC. 7003. STUDY ON PROJECTED IMPACT. 
(a) STUDY.—Beginning on the date that is 26 months after 
the date of enactment of this Act, the Secretary of Labor shall, 
through the Bureau of Labor Statistics, conduct a study to—
H. R. 1591—71
(1) assess the assess the impact of the wage increases 
required by this Act through such date; and 
(2) to project the impact of any further wage increase, 
on living standards and rates of employment in American Samoa 
and the Commonwealth of the Northern Mariana Islands. 
(b) REPORT.—Not later than the date that is 32 months after 
the date of enactment of this Act, the Secretary of Labor shall 
transmit to Congress a report on the findings of the study required 
by subsection (a). 
Subtitle B—Small Business Incentives 
SEC. 7004. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business and Work 
Opportunity Act of 2007’’. 
SEC. 
7005. 
ENHANCED 
COMPLIANCE 
ASSISTANCE 
FOR 
SMALL 
BUSINESSES. 
(a) IN GENERAL.—Section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended 
by striking subsection (a) and inserting the following: 
‘‘(a) COMPLIANCE GUIDE.—
‘‘(1) IN GENERAL.—For each rule or group of related rules 
for which an agency is required to prepare a final regulatory 
flexibility analysis under section 605(b) of title 5, United States 
Code, the agency shall publish 1 or more guides to assist 
small entities in complying with the rule and shall entitle 
such publications ‘small entity compliance guides’. 
‘‘(2) PUBLICATION OF GUIDES.—The publication of each guide 
under this subsection shall include—
‘‘(A) the posting of the guide in an easily identified 
location on the website of the agency; and 
‘‘(B) distribution of the guide to known industry con-
tacts, such as small entities, associations, or industry 
leaders affected by the rule. 
‘‘(3) PUBLICATION
DATE.—An agency shall publish each 
guide (including the posting and distribution of the guide as 
described under paragraph (2))—
‘‘(A) on the same date as the date of publication of 
the final rule (or as soon as possible after that date); 
and 
‘‘(B) not later than the date on which the requirements 
of that rule become effective. 
‘‘(4) COMPLIANCE ACTIONS.—
‘‘(A) IN GENERAL.—Each guide shall explain the actions 
a small entity is required to take to comply with a rule. 
‘‘(B) EXPLANATION.—The explanation under subpara-
graph (A)—
‘‘(i) shall include a description of actions needed 
to meet the requirements of a rule, to enable a small 
entity to know when such requirements are met; and 
‘‘(ii) if determined appropriate by the agency, may 
include a description of possible procedures, such as 
conducting tests, that may assist a small entity in 
meeting such requirements, except that, compliance 
with any procedures described pursuant to this section
H. R. 1591—72
does not establish compliance with the rule, or estab-
lish a presumption or inference of such compliance. 
‘‘(C) 
PROCEDURES.—Procedures 
described 
under 
subparagraph (B)(ii)—
‘‘(i) shall be suggestions to assist small entities; 
and 
‘‘(ii) shall not be additional requirements, or 
diminish requirements, relating to the rule. 
‘‘(5) AGENCY PREPARATION OF GUIDES.—The agency shall, 
in its sole discretion, taking into account the subject matter 
of the rule and the language of relevant statutes, ensure that 
the guide is written using sufficiently plain language likely 
to be understood by affected small entities. Agencies may pre-
pare separate guides covering groups or classes of similarly 
affected small entities and may cooperate with associations 
of small entities to develop and distribute such guides. An 
agency may prepare guides and apply this section with respect 
to a rule or a group of related rules. 
‘‘(6) REPORTING.—Not later than 1 year after the date of 
enactment of the Fair Minimum Wage Act of 2007, and 
annually thereafter, the head of each agency shall submit a 
report to the Committee on Small Business and Entrepreneur-
ship of the Senate, the Committee on Small Business of the 
House of Representatives, and any other committee of relevant 
jurisdiction describing the status of the agency’s compliance 
with paragraphs (1) through (5).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 211(3) 
of the Small Business Regulatory Enforcement Fairness Act of 
1996 (5 U.S.C. 601 note) is amended by inserting ‘‘and entitled’’ 
after ‘‘designated’’. 
SEC. 7006. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Health and Human 
Services (referred to in this section as the ‘‘Secretary’’) shall estab-
lish a program to award grants to States, on a competitive basis, 
to assist States in providing funds to encourage the establishment 
and operation of employer-operated child care programs. 
(b) APPLICATION.—To be eligible to receive a grant under this 
section, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including an assurance 
that the funds required under subsection (e) will be provided. 
(c) AMOUNT AND PERIOD OF GRANT.—The Secretary shall deter-
mine the amount of a grant to a State under this section based 
on the population of the State as compared to the population of 
all States receiving grants under this section. The Secretary shall 
make the grant for a period of 3 years. 
(d) USE OF FUNDS.—
(1) IN GENERAL.—A State shall use amounts provided under 
a grant awarded under this section to provide assistance to 
small businesses (or consortia formed in accordance with para-
graph (3)) located in the State to enable the small businesses 
(or consortia) to establish and operate child care programs. 
Such assistance may include—
(A) technical assistance in the establishment of a child 
care program;
H. R. 1591—73
(B) assistance for the startup costs related to a child 
care program; 
(C) assistance for the training of child care providers; 
(D) scholarships for low-income wage earners; 
(E) the provision of services to care for sick children 
or to provide care to school-aged children; 
(F) the entering into of contracts with local resource 
and referral organizations or local health departments; 
(G) assistance for care for children with disabilities; 
(H) payment of expenses for renovation or operation 
of a child care facility; or 
(I) assistance for any other activity determined appro-
priate by the State. 
(2) APPLICATION.—In order for a small business or consor-
tium to be eligible to receive assistance from a State under 
this section, the small business involved shall prepare and 
submit to the State an application at such time, in such manner, 
and containing such information as the State may require. 
(3) PREFERENCE.—
(A) IN GENERAL.—In providing assistance under this 
section, a State shall give priority to an applicant that 
desires to form a consortium to provide child care in a 
geographic area within the State where such care is not 
generally available or accessible. 
(B) CONSORTIUM.—For purposes of subparagraph (A), 
a consortium shall be made up of 2 or more entities that 
shall include small businesses and that may include large 
businesses, nonprofit agencies or organizations, local 
governments, or other appropriate entities. 
(4) LIMITATIONS.—With respect to grant funds received 
under this section, a State may not provide in excess of 
$500,000 in assistance from such funds to any single applicant. 
(e) MATCHING REQUIREMENT.—To be eligible to receive a grant 
under this section, a State shall provide assurances to the Secretary 
that, with respect to the costs to be incurred by a covered entity 
receiving assistance in carrying out activities under this section, 
the covered entity will make available (directly or through donations 
from public or private entities) non-Federal contributions to such 
costs in an amount equal to—
(1) for the first fiscal year in which the covered entity 
receives such assistance, not less than 50 percent of such costs 
($1 for each $1 of assistance provided to the covered entity 
under the grant); 
(2) for the second fiscal year in which the covered entity 
receives such assistance, not less than 662⁄3 percent of such 
costs ($2 for each $1 of assistance provided to the covered 
entity under the grant); and 
(3) for the third fiscal year in which the covered entity 
receives such assistance, not less than 75 percent of such costs 
($3 for each $1 of assistance provided to the covered entity 
under the grant). 
(f) REQUIREMENTS
OF PROVIDERS.—To be eligible to receive 
assistance under a grant awarded under this section, a child care 
provider—
H. R. 1591—74
(1) who receives assistance from a State shall comply with 
all applicable State and local licensing and regulatory require-
ments and all applicable health and safety standards in effect 
in the State; and 
(2) who receives assistance from an Indian tribe or tribal 
organization shall comply with all applicable regulatory stand-
ards. 
(g) STATE-LEVEL ACTIVITIES.—A State may not retain more 
than 3 percent of the amount described in subsection (c) for State 
administration and other State-level activities. 
(h) ADMINISTRATION.—
(1) STATE RESPONSIBILITY.—A State shall have responsi-
bility for administering a grant awarded for the State under 
this section and for monitoring covered entities that receive 
assistance under such grant. 
(2) AUDITS.—A State shall require each covered entity 
receiving assistance under the grant awarded under this section 
to conduct an annual audit with respect to the activities of 
the covered entity. Such audits shall be submitted to the State. 
(3) MISUSE OF FUNDS.—
(A) REPAYMENT.—If the State determines, through an 
audit or otherwise, that a covered entity receiving assist-
ance under a grant awarded under this section has misused 
the assistance, the State shall notify the Secretary of the 
misuse. The Secretary, upon such a notification, may seek 
from such a covered entity the repayment of an amount 
equal to the amount of any such misused assistance plus 
interest. 
(B) APPEALS PROCESS.—The Secretary shall by regula-
tion provide for an appeals process with respect to repay-
ments under this paragraph. 
(i) REPORTING REQUIREMENTS.—
(1) 2-YEAR STUDY.—
(A) IN
GENERAL.—Not later than 2 years after the 
date on which the Secretary first awards grants under 
this section, the Secretary shall conduct a study to deter-
mine—
(i) the capacity of covered entities to meet the 
child care needs of communities within States; 
(ii) the kinds of consortia that are being formed 
with respect to child care at the local level to carry 
out programs funded under this section; and 
(iii) who is using the programs funded under this 
section and the income levels of such individuals. 
(B) REPORT.—Not later than 28 months after the date 
on which the Secretary first awards grants under this 
section, the Secretary shall prepare and submit to the 
appropriate committees of Congress a report on the results 
of the study conducted in accordance with subparagraph 
(A). 
(2) 4-YEAR STUDY.—
(A) IN
GENERAL.—Not later than 4 years after the 
date on which the Secretary first awards grants under 
this section, the Secretary shall conduct a study to deter-
mine the number of child care facilities that are funded 
through covered entities that received assistance through 
a grant awarded under this section and that remain in
H. R. 1591—75
operation, and the extent to which such facilities are 
meeting the child care needs of the individuals served 
by such facilities. 
(B) REPORT.—Not later than 52 months after the date 
on which the Secretary first awards grants under this 
section, the Secretary shall prepare and submit to the 
appropriate committees of Congress a report on the results 
of the study conducted in accordance with subparagraph 
(A). 
(j) DEFINITIONS.—In this section: 
(1) COVERED
ENTITY.—The term ‘‘covered entity’’ means 
a small business or a consortium formed in accordance with 
subsection (d)(3). 
(2) INDIAN
COMMUNITY.—The term ‘‘Indian community’’ 
means a community served by an Indian tribe or tribal 
organization. 
(3) INDIAN
TRIBE; 
TRIBAL
ORGANIZATION.—The terms 
‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings 
given the terms in section 658P of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858n). 
(4) SMALL BUSINESS.—The term ‘‘small business’’ means 
an employer who employed an average of at least 2 but not 
more than 50 employees on the business days during the pre-
ceding calendar year. 
(5) STATE.—The term ‘‘State’’ has the meaning given the 
term in section 658P of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858n). 
(k) APPLICATION
TO INDIAN TRIBES
AND TRIBAL ORGANIZA-
TIONS.—In this section: 
(1) IN GENERAL.—Except as provided in subsection (f)(1), 
and in paragraphs (2) and (3), the term ‘‘State’’ includes an 
Indian tribe or tribal organization. 
(2) GEOGRAPHIC REFERENCES.—The term ‘‘State’’ includes 
an Indian community in subsections (c) (the second and third 
place the term appears), (d)(1) (the second place the term 
appears), (d)(3)(A) (the second place the term appears), and 
(i)(1)(A)(i). 
(3) STATE-LEVEL ACTIVITIES.—The term ‘‘State-level activi-
ties’’ includes activities at the tribal level. 
(l) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be appropriated 
to carry out this section, $50,000,000 for the period of fiscal 
years 2008 through 2012. 
(2) STUDIES
AND
ADMINISTRATION.—With respect to the 
total amount appropriated for such period in accordance with 
this subsection, not more than $2,500,000 of that amount may 
be used for expenditures related to conducting studies required 
under, and the administration of, this section. 
(m) TERMINATION
OF
PROGRAM.—The program established 
under subsection (a) shall terminate on September 30, 2012. 
SEC. 7007. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF 
EARNED INCOME CREDIT. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of the Treasury shall report to Congress 
on a study of the benefits, costs, risks, and barriers to workers 
and to businesses (with a special emphasis on small businesses)
H. R. 1591—76
if the advance earned income tax credit program (under section 
3507 of the Internal Revenue Code of 1986) included all recipients 
of the earned income tax credit (under section 32 of such Code) 
and what steps would be necessary to implement such inclusion. 
SEC. 7008. RENEWAL GRANTS FOR WOMEN’S BUSINESS CENTERS. 
(a) IN GENERAL.—Section 29 of the Small Business Act (15 
U.S.C. 656) is amended by adding at the end the following: 
‘‘(m) CONTINUED FUNDING FOR CENTERS.—
‘‘(1) IN GENERAL.—A nonprofit organization described in 
paragraph (2) shall be eligible to receive, subject to paragraph 
(3), a 3-year grant under this subsection. 
‘‘(2) APPLICABILITY.—A nonprofit organization described in 
this paragraph is a nonprofit organization that has received 
funding under subsection (b) or (l). 
‘‘(3) APPLICATION AND APPROVAL CRITERIA.—
‘‘(A) CRITERIA.—Subject to subparagraph (B), the 
Administrator shall develop and publish criteria for the 
consideration and approval of applications by nonprofit 
organizations under this subsection. 
‘‘(B) CONTENTS.—Except as otherwise provided in this 
subsection, the conditions for participation in the grant 
program under this subsection shall be the same as the 
conditions for participation in the program under sub-
section (l), as in effect on the date of enactment of this 
Act. 
‘‘(C) NOTIFICATION.—Not later than 60 days after the 
date of the deadline to submit applications for each fiscal 
year, the Administrator shall approve or deny any applica-
tion under this subsection and notify the applicant for 
each such application. 
‘‘(4) AWARD OF GRANTS.—
‘‘(A) IN GENERAL.—Subject to the availability of appro-
priations, the Administrator shall make a grant for the 
Federal share of the cost of activities described in the 
application to each applicant approved under this sub-
section. 
‘‘(B) AMOUNT.—A grant under this subsection shall 
be for not more than $150,000, for each year of that grant. 
‘‘(C) FEDERAL SHARE.—The Federal share under this 
subsection shall be not more than 50 percent. 
‘‘(D) PRIORITY.—In allocating funds made available for 
grants under this section, the Administrator shall give 
applications under this subsection or subsection (l) priority 
over first-time applications under subsection (b). 
‘‘(5) RENEWAL.—
‘‘(A) IN
GENERAL.—The Administrator may renew a 
grant under this subsection for additional 3-year periods, 
if the nonprofit organization submits an application for 
such renewal at such time, in such manner, and accom-
panied by such information as the Administrator may 
establish. 
‘‘(B) UNLIMITED RENEWALS.—There shall be no limita-
tion on the number of times a grant may be renewed 
under subparagraph (A). 
‘‘(n) PRIVACY REQUIREMENTS.—
H. R. 1591—77
‘‘(1) IN GENERAL.—A women’s business center may not dis-
close the name, address, or telephone number of any individual 
or small business concern receiving assistance under this sec-
tion without the consent of such individual or small business 
concern, unless—
‘‘(A) the Administrator is ordered to make such a disclo-
sure by a court in any civil or criminal enforcement action 
initiated by a Federal or State agency; or 
‘‘(B) the Administrator considers such a disclosure to 
be necessary for the purpose of conducting a financial audit 
of a women’s business center, but a disclosure under this 
subparagraph shall be limited to the information necessary 
for such audit. 
‘‘(2) ADMINISTRATION
USE
OF
INFORMATION.—This sub-
section shall not—
‘‘(A) restrict Administration access to program activity 
data; or 
‘‘(B) prevent the Administration from using client 
information (other than the information described in 
subparagraph (A)) to conduct client surveys. 
‘‘(3) REGULATIONS.—The Administrator shall issue regula-
tions to establish standards for requiring disclosures during 
a financial audit under paragraph (1)(B).’’. 
(b) REPEAL.—Section 29(l) of the Small Business Act (15 U.S.C. 
656(l)) is repealed effective October 1 of the first full fiscal year 
after the date of enactment of this Act. 
(c) TRANSITIONAL RULE.—Notwithstanding any other provision 
of law, a grant or cooperative agreement that was awarded under 
subsection (l) of section 29 of the Small Business Act (15 U.S.C. 
656), on or before the day before the date described in subsection 
(b) of this section, shall remain in full force and effect under 
the terms, and for the duration, of such grant or agreement. 
SEC. 7009. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND 
SUPPLIES 
MANUFACTURED 
OUTSIDE 
THE 
UNITED 
STATES. 
Section 2 of the Buy American Act (41 U.S.C. 10a) is amended—
(1) by striking ‘‘Notwithstanding’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—Notwithstanding’’; and 
(2) by adding at the end the following: 
‘‘(b) REPORTS.—
‘‘(1) IN GENERAL.—Not later than 180 days after the end 
of each of fiscal years 2007 through 2011, the head of each 
Federal agency shall submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate and the Com-
mittee on Oversight and Government Reform of the House 
of Representatives a report on the amount of the acquisitions 
made by the agency in that fiscal year of articles, materials, 
or supplies purchased from entities that manufacture the arti-
cles, materials, or supplies outside of the United States. 
‘‘(2) CONTENTS OF REPORT.—The report required by para-
graph (1) shall separately include, for the fiscal year covered 
by such report—
‘‘(A) the dollar value of any articles, materials, or sup-
plies that were manufactured outside the United States;
H. R. 1591—78
‘‘(B) an itemized list of all waivers granted with respect 
to such articles, materials, or supplies under this Act, 
and a citation to the treaty, international agreement, or 
other law under which each waiver was granted; 
‘‘(C) if any articles, materials, or supplies were acquired 
from entities that manufacture articles, materials, or sup-
plies outside the United States, the specific exception under 
this section that was used to purchase such articles, mate-
rials, or supplies; and 
‘‘(D) a summary of—
‘‘(i) the total procurement funds expended on arti-
cles, materials, and supplies manufactured inside the 
United States; and 
‘‘(ii) the total procurement funds expended on arti-
cles, materials, and supplies manufactured outside the 
United States. 
‘‘(3) PUBLIC
AVAILABILITY.—The head of each Federal 
agency submitting a report under paragraph (1) shall make 
the report publicly available to the maximum extent practicable. 
‘‘(4) EXCEPTION FOR INTELLIGENCE COMMUNITY.—This sub-
section shall not apply to acquisitions made by an agency, 
or component thereof, that is an element of the intelligence 
community as specified in, or designated under, section 3(4) 
of the National Security Act of 1947 (50 U.S.C. 401a(4)).’’. 
Subtitle C—Small Business Tax Incentives 
SEC. 7510. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Small 
Business and Work Opportunity Tax Act of 2007’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this subtitle an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be made 
to a section or other provision of the Internal Revenue Code of 
1986. 
(c) TABLE OF CONTENTS.—The table of contents of this subtitle 
is as follows:
Subtitle C—Small Business Tax Incentives 
Sec. 7510. Short title; amendment of Code; table of contents. 
PART I—SMALL BUSINESS TAX RELIEF PROVISIONS 
SUBPART A—GENERAL PROVISIONS 
Sec. 7511. Extension and modification of work opportunity tax credit. 
Sec. 7512. Extension and increase of expensing for small business. 
Sec. 7513. Determination of credit for certain taxes paid with respect to employee 
cash tips. 
Sec. 7514. Waiver of individual and corporate alternative minimum tax limits on 
work opportunity credit and credit for taxes paid with respect to em-
ployee cash tips. 
Sec. 7515. Family business tax simplification. 
SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES 
Sec. 7521. Extension of increased expensing for qualified section 179 Gulf Oppor-
tunity Zone property. 
Sec. 7522. Extension and expansion of low-income housing credit rules for buildings 
in the GO Zones. 
Sec. 7523. Special tax-exempt bond financing rule for repairs and reconstructions 
of residences in the GO Zones.
H. R. 1591—79
Sec. 7524. GAO study of practices employed by State and local governments in allo-
cating and utilizing tax incentives provided pursuant to the Gulf Oppor-
tunity Zone Act of 2005. 
SUBPART C—SUBCHAPTER S PROVISIONS 
Sec. 7531. Capital gain of S corporation not treated as passive investment income. 
Sec. 7532. Treatment of bank director shares. 
Sec. 7533. Special rule for bank required to change from the reserve method of ac-
counting on becoming S corporation. 
Sec. 7534. Treatment of the sale of interest in a qualified subchapter S subsidiary. 
Sec. 7535. Elimination of all earnings and profits attributable to pre-1983 years for 
certain corporations. 
Sec. 7536. Deductibility of interest expense on indebtedness incurred by an electing 
small business trust to acquire S corporation stock. 
PART II—REVENUE PROVISIONS 
Sec. 7541. Increase in age of minor children whose unearned income is taxed as if 
parent’s income. 
Sec. 7542. Suspension of certain penalties and interest. 
Sec. 7543. Modification of collection due process procedures for employment tax li-
abilities. 
Sec. 7544. Permanent extension of IRS user fees. 
Sec. 7545. Increase in penalty for bad checks and money orders. 
Sec. 7546. Understatement of taxpayer liability by return preparers. 
Sec. 7547. Penalty for filing erroneous refund claims. 
Sec. 7548. Time for payment of corporate estimated taxes.
PART I—SMALL BUSINESS TAX RELIEF 
PROVISIONS 
Subpart A—General Provisions 
SEC. 7511. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY 
TAX CREDIT. 
(a) EXTENSION.—Section 51(c)(4)(B) (relating to termination) 
is amended by striking ‘‘December 31, 2007’’ and inserting ‘‘August 
31, 2011’’. 
(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED COMMUNITY 
RESIDENTS.—
(1) IN GENERAL.—Paragraph (5) of section 51(d) is amended 
to read as follows: 
‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—
‘‘(A) IN
GENERAL.—The term ‘designated community 
resident’ means any individual who is certified by the des-
ignated local agency—
‘‘(i) as having attained age 18 but not age 40 
on the hiring date, and 
‘‘(ii) as having his principal place of abode within 
an empowerment zone, enterprise community, renewal 
community, or rural renewal county. 
‘‘(B) INDIVIDUAL MUST CONTINUE TO RESIDE IN ZONE, 
COMMUNITY, OR
COUNTY.—In the case of a designated 
community resident, the term ‘qualified wages’ shall not 
include wages paid or incurred for services performed while 
the individual’s principal place of abode is outside an 
empowerment 
zone, 
enterprise 
community, 
renewal 
community, or rural renewal county. 
‘‘(C) RURAL RENEWAL COUNTY.—For purposes of this 
paragraph, the term ‘rural renewal county’ means any 
county which—
‘‘(i) is outside a metropolitan statistical area 
(defined as such by the Office of Management and 
Budget), and