[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1591 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
March 29, 2007.
Resolved, That the bill from the House of Representatives (H.R.
1591) entitled ``An Act making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other
purposes.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
That the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2007, and for other purposes, namely:
TITLE I
GLOBAL WAR ON TERROR SUPPLEMENTAL APPROPRIATIONS
CHAPTER 1
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
public law 480 title ii grants
For an additional amount for ``Public Law 480 Title II Grants'',
during the current fiscal year, not otherwise recoverable, and
unrecovered prior years' costs, including interest thereon, under the
Agricultural Trade Development and Assistance Act of 1954, for
commodities supplied in connection with dispositions abroad under title
II of said Act, $475,000,000, to remain available until expended.
GENERAL PROVISION--THIS CHAPTER
Sec. 1101. There is hereby appropriated $82,000,000 to reimburse
the Commodity Credit Corporation for the release of eligible
commodities under section 302(f)(2)(A) of the Bill Emerson Humanitarian
Trust Act (7 U.S.C. 1736f-1): Provided, That any such funds made
available to reimburse the Commodity Credit Corporation shall only be
used to replenish the Bill Emerson Humanitarian Trust.
CHAPTER 2
DEPARTMENT OF JUSTICE
General Administration
office of the inspector general
For an additional amount for ``Office of the Inspector General'',
$500,000, to remain available until September 30, 2008.
Legal Activities
salaries and expenses, general legal activities
For an additional amount for ``Salaries and Expenses, General Legal
Activities'', $4,093,000, to remain available until September 30, 2008.
salaries and expenses, united states attorneys
For an additional amount for ``Salaries and Expenses, United States
Attorneys'', $12,500,000, to remain available until September 30, 2008.
United States Marshals Service
salaries and expenses, united states marshals service
For an additional amount for ``Salaries and Expenses, United States
Marshals Service'', $32,500,000, to remain available until September
30, 2008: Provided, That of the amounts made available in this Act for
``Educational and Cultural Exchange Programs'', $15,000,000 is
rescinded.
National Security Division
Salaries and Expenses
For an additional amount for ``Salaries and Expenses,'' $1,736,000,
to remain available until September 30, 2008.
Federal Bureau of Investigation
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$348,260,000, of which $338,260,000 is to remain available until
September 30, 2008 and $10,000,000 is to remain available until
expended to implement corrective actions in response to the findings
and recommendations in the Department of Justice Office of Inspector
General report entitled, ``A Review of the Federal Bureau of
Investigation's Use of National Security Letters''.
Drug Enforcement Administration
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$25,100,000, to remain available until September 30, 2008.
Bureau of Alcohol, Tobacco, Firearms, and Explosives
salaries and expenses
For an additional amount for ``Salaries and Expenses'', $4,000,000,
to remain available until September 30, 2008.
Federal Prison System
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$17,000,000, to remain available until September 30, 2008.
CHAPTER 3
DEPARTMENT OF DEFENSE--MILITARY
MILITARY PERSONNEL
Military Personnel, Army
For an additional amount for ``Military Personnel, Army'',
$8,870,270,000.
Military Personnel, Navy
For an additional amount for ``Military Personnel, Navy'',
$1,100,410,000.
Military Personnel, Marine Corps
For an additional amount for ``Military Personnel, Marine Corps'',
$1,495,827,000.
Military Personnel, Air Force
For an additional amount for ``Military Personnel, Air Force'',
$1,218,587,000.
Reserve Personnel, Army
For an additional amount for ``Reserve Personnel, Army'',
$147,244,000.
Reserve Personnel, Navy
For an additional amount for ``Reserve Personnel, Navy'',
$77,523,000.
Reserve Personnel, Air Force
For an additional amount for ``Reserve Personnel, Air Force'',
$9,073,000.
National Guard Personnel, Army
For an additional amount for ``National Guard Personnel, Army'',
$474,978,000.
National Guard Personnel, Air Force
For an additional amount for ``National Guard Personnel, Air
Force'', $41,533,000.
OPERATION AND MAINTENANCE
Operation and Maintenance, Army
For an additional amount for ``Operation and Maintenance, Army'',
$20,373,379,000.
Operation and Maintenance, Navy
(including transfer of funds)
For an additional amount for ``Operation and Maintenance, Navy'',
$4,865,003,000, of which $120,293,000 shall be transferred to Coast
Guard, ``Operating Expenses'', for reimbursement for activities in
support of activities requested by the Navy.
Operation and Maintenance, Marine Corps
For an additional amount for ``Operation and Maintenance, Marine
Corps'', $1,101,594,000.
Operation and Maintenance, Air Force
For an additional amount for ``Operation and Maintenance, Air
Force'', $6,685,881,000.
Operation and Maintenance, Defense-Wide
For an additional amount for ``Operation and Maintenance, Defense-
Wide'', $2,790,669,000, of which--
(1) not to exceed $25,000,000 may be used for the Combatant
Commander Initiative Fund, to be used in support of Operation
Iraqi Freedom and Operation Enduring Freedom; and
(2) not to exceed $200,000,000, to remain available until
expended, may be used for payments to reimburse Pakistan,
Jordan, and other key cooperating nations, for logistical,
military, and other support provided to United States military
operations, notwithstanding any other provision of law:
Provided, That such payments may be made in such amounts as the
Secretary of Defense, with the concurrence of the Secretary of
State, and in consultation with the Director of the Office of
Management and Budget, may determine, in his discretion, based
on documentation determined by the Secretary of Defense to
adequately account for the support provided, and such
determination is final and conclusive upon the accounting
officers of the United States, and 15 days following
notification to the appropriate congressional committees:
Provided further, That the Secretary of Defense shall provide
quarterly reports to the congressional defense committees on
the use of funds provided in this paragraph.
Operation and Maintenance, Army Reserve
For an additional amount for ``Operation and Maintenance, Army
Reserve'', $74,049,000.
Operation and Maintenance, Navy Reserve
For an additional amount for ``Operation and Maintenance, Navy
Reserve'', $111,066,000.
Operation and Maintenance, Marine Corps Reserve
For an additional amount for ``Operation and Maintenance, Marine
Corps Reserve'', $13,591,000.
Operation and Maintenance, Air Force Reserve
For an additional amount for ``Operation and Maintenance, Air Force
Reserve'', $10,160,000.
Operation and Maintenance, Army National Guard
For an additional amount for ``Operation and Maintenance, Army
National Guard'', $83,569,000.
Operation and Maintenance, Air National Guard
For an additional amount for ``Operation and Maintenance, Air
National Guard'', $38,429,000.
Afghanistan Security Forces Fund
For an additional amount for ``Afghanistan Security Forces Fund'',
$5,906,400,000, to remain available until September 30, 2008.
Iraq Security Forces Fund
For an additional amount for ``Iraq Security Forces Fund'',
$3,842,300,000, to remain available until September 30, 2008.
Iraq Freedom Fund
(including transfer of funds)
For an additional amount for ``Iraq Freedom Fund'', $455,600,000,
to remain available for transfer until September 30, 2008.
Joint Improvised Explosive Device Defeat Fund
For an additional amount for ``Joint Improvised Explosive Device
Defeat Fund'', $2,432,800,000, to remain available until September 30,
2009.
PROCUREMENT
Aircraft Procurement, Army
For an additional amount for ``Aircraft Procurement, Army'',
$619,750,000, to remain available until September 30, 2009.
Missile Procurement, Army
For an additional amount for ``Missile Procurement, Army'',
$111,473,000, to remain available until September 30, 2009.
Procurement of Weapons and Tracked Combat Vehicles, Army
For an additional amount for ``Procurement of Weapons and Tracked
Combat Vehicles, Army'', $3,400,315,000, to remain available until
September 30, 2009.
Procurement of Ammunition, Army
For an additional amount for ``Procurement of Ammunition, Army'',
$681,500,000, to remain available until September 30, 2009.
Other Procurement, Army
For an additional amount for ``Other Procurement, Army'',
$10,589,272,000, to remain available until September 30, 2009.
Aircraft Procurement, Navy
For an additional amount for ``Aircraft Procurement, Navy'',
$963,903,000, to remain available until September 30, 2009.
Weapons Procurement, Navy
For an additional amount for ``Weapons Procurement, Navy'',
$163,813,000, to remain available until September 30, 2009.
Procurement of Ammunition, Navy and Marine Corps
For an additional amount for ``Procurement of Ammunition, Navy and
Marine Corps'', $159,833,000, to remain available until September 30,
2009.
Other Procurement, Navy
For an additional amount for ``Other Procurement, Navy'',
$722,506,000, to remain available until September 30, 2009.
Procurement, Marine Corps
For an additional amount for ``Procurement, Marine Corps'',
$1,703,389,000, to remain available until September 30, 2009.
Aircraft Procurement, Air Force
For an additional amount for ``Aircraft Procurement, Air Force'',
$1,431,756,000, to remain available until September 30, 2009.
Missile Procurement, Air Force
For an additional amount for ``Missile Procurement, Air Force'',
$78,900,000, to remain available until September 30, 2009.
Procurement of Ammunition, Air Force
For an additional amount for ``Procurement of Ammunition, Air
Force'', $6,000,000, to remain available until September 30, 2009.
Other Procurement, Air Force
For an additional amount for ``Other Procurement, Air Force'',
$1,972,131,000, to remain available until September 30, 2009.
Procurement, Defense-Wide
For an additional amount for ``Procurement, Defense-Wide'',
$903,092,000, to remain available until September 30, 2009.
National Guard and Reserve Equipment
For an additional amount for ``National Guard and Reserve
Equipment'', $1,000,000,000, to remain available until September 30,
2009.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
Research, Development, Test and Evaluation, Army
For an additional amount for ``Research, Development, Test and
Evaluation, Army'', $125,576,000, to remain available until September
30, 2008.
Research, Development, Test and Evaluation, Navy
For an additional amount for ``Research, Development, Test and
Evaluation, Navy'', $308,212,000, to remain available until September
30, 2008.
Research, Development, Test and Evaluation, Air Force
For an additional amount for ``Research, Development, Test and
Evaluation, Air Force'', $233,869,000, to remain available until
September 30, 2008.
Research, Development, Test and Evaluation, Defense-Wide
For an additional amount for ``Research, Development, Test and
Evaluation, Defense-Wide'', $522,804,000, to remain available until
September 30, 2008.
REVOLVING AND MANAGEMENT FUNDS
National Defense Sealift Fund
For an additional amount for ``National Defense Sealift Fund'',
$5,000,000.
Defense Working Capital Funds
For an additional amount for ``Defense Working Capital Funds'',
$1,315,526,000.
OTHER DEPARTMENT OF DEFENSE PROGRAMS
Defense Health Program
For an additional amount for ``Defense Health Program'',
$2,466,847,000; of which $2,277,147,000 shall be for operation and
maintenance; of which $118,000,000, to remain available for obligation
until September 30, 2009, shall be for Procurement; and of which
$71,700,000, to remain available for obligation until September 30,
2008, shall be for Research, development, test and evaluation.
Drug Interdiction and Counter-Drug Activities, Defense
(including transfer of funds)
For an additional amount for ``Drug Interdiction and Counter-Drug
Activities, Defense'', $254,665,000, to remain available until
expended: Provided, That these funds may be used only for such
activities related to Afghanistan and Central Asia: Provided further,
That the Secretary of Defense may transfer such funds only to
appropriations for military personnel; operation and maintenance;
procurement; and research, development, test and evaluation: Provided
further, That the funds transferred shall be merged with and be
available for the same purposes and for the same time period as the
appropriation to which transferred: Provided further, That the transfer
authority provided in this paragraph is in addition to any other
transfer authority available to the Department of Defense: Provided
further, That upon a determination that all or part of the funds
transferred from this appropriation are not necessary for the purposes
provided herein, such amounts may be transferred back to this
appropriation.
RELATED AGENCY
Intelligence Community Management Account
For an additional amount for ``Intelligence Community Management
Account'', $71,726,000.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 1301. Appropriations provided in this chapter are available
for obligation until September 30, 2007, unless otherwise provided in
this chapter.
(transfer of funds)
Sec. 1302. Upon his determination that such action is necessary in
the national interest, the Secretary of Defense may transfer between
appropriations up to $3,500,000,000 of the funds made available to the
Department of Defense in this title: Provided, That the Secretary shall
notify the Congress promptly of each transfer made pursuant to the
authority in this section: Provided further, That the authority
provided in this section is in addition to any other transfer authority
available to the Department of Defense and is subject to the same terms
and conditions as the authority provided in section 8005 of the
Department of Defense Appropriations Act, 2007 (Public Law 109-289; 120
Stat. 1257), except for the fourth proviso: Provided further, That
funds previously transferred to the ``Joint Improvised Explosive Device
Defeat Fund'' and the ``Iraq Security Forces Fund'' under the authority
of section 8005 of Public Law 109-289 and transferred back to their
source appropriations accounts shall not be taken into account for
purposes of the limitation on the amount of funds that may be
transferred under section 8005.
Sec. 1303. Funds appropriated in this chapter, or made available by
the transfer of funds in or pursuant to this chapter, for intelligence
activities are deemed to be specifically authorized by the Congress for
purposes of section 504(a)(1) of the National Security Act of 1947 (50
U.S.C. 414(a)(1)).
Sec. 1304. None of the funds provided in this chapter may be used
to finance programs or activities denied by Congress in fiscal years
2006 or 2007 appropriations to the Department of Defense or to initiate
a procurement or research, development, test and evaluation new start
program without prior written notification to the congressional defense
committees.
Sec. 1305. During fiscal year 2007, the Secretary of Defense may
transfer not to exceed $6,300,000 of the amounts in or credited to the
Defense Cooperation Account, pursuant to 10 U.S.C. 2608, to such
appropriations or funds of the Department of Defense as he shall
determine for use consistent with the purposes for which such funds
were contributed and accepted: Provided, That such amounts shall be
available for the same time period as the appropriation to which
transferred: Provided further, That the Secretary shall report to the
Congress all transfers made pursuant to this authority.
Sec. 1306. (a) Authority To Provide Support.--Of the amount
appropriated by this title under the heading, ``Drug Interdiction and
Counter-Drug Activities, Defense'', not to exceed $60,000,000 may be
used for support for counter-drug activities of the Governments of
Afghanistan, Kazakhstan, and Pakistan: Provided, That such support
shall be in addition to support provided for the counter-drug
activities of such Governments under any other provision of the law.
(b) Types of Support.--
(1) Except as specified in subsection (b)(2) of this
section, the support that may be provided under the authority
in this section shall be limited to the types of support
specified in section 1033(c)(1) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85, as
amended by Public Laws 106-398, 108-136, and 109-364) and
conditions on the provision of support as contained in section
1033 shall apply for fiscal year 2007.
(2) The Secretary of Defense may transfer vehicles,
aircraft, and detection, interception, monitoring and testing
equipment to said Governments for counter-drug activities.
Sec. 1307. (a) From funds made available for operations and
maintenance in this title to the Department of Defense, not to exceed
$456,400,000 may be used, notwithstanding any other provision of law,
to fund the Commander's Emergency Response Program, for the purpose of
enabling military commanders in Iraq and Afghanistan to respond to
urgent humanitarian relief and reconstruction requirements within their
areas of responsibility by carrying out programs that will immediately
assist the Iraqi and Afghan people.
(b) Quarterly Reports.--Not later than 15 days after the end of
each fiscal year quarter, the Secretary of Defense shall submit to the
congressional defense committees a report regarding the source of funds
and the allocation and use of funds during that quarter that were made
available pursuant to the authority provided in this section or under
any other provision of law for the purposes of the programs under
subsection (a).
Sec. 1308. During fiscal year 2007, supervision and administration
costs associated with projects carried out with funds appropriated to
``Afghanistan Security Forces Fund'' or ``Iraq Security Forces Fund''
in this chapter may be obligated at the time a construction contract is
awarded: Provided, That for the purpose of this section, supervision
and administration costs include all in-house Government costs.
Sec. 1309. Section 1005(c)(2) of the National Defense Authorization
Act, Fiscal Year 2007 (Public Law 109-364) is amended by striking
``$310,277,000'' and inserting ``$376,446,000''.
Sec. 1310. None of the funds appropriated or otherwise made
available by this or any other Act shall be obligated or expended by
the United States Government for a purpose as follows:
(1) To establish any military installation or base for the
purpose of providing for the permanent stationing of United
States Armed Forces in Iraq.
(2) To exercise United States control over any oil resource
of Iraq.
Sec. 1311. None of the funds made available in this Act may be used
in contravention of the following laws enacted or regulations
promulgated to implement the United Nations Convention Against Torture
and Other Cruel, Inhuman or Degrading Treatment or Punishment (done at
New York on December 10, 1984):
(1) Section 2340A of title 18, United States Code;
(2) Section 2242 of the Foreign Affairs Reform and
Restructuring Act of 1998 (division G of Public Law 105-277;
112 Stat. 2681-822; 8 U.S.C. 1231 note) and regulations
prescribed thereto, including regulations under part 208 of
title 8, Code of Federal Regulations, and part 95 of title 22,
Code of Federal Regulations; and
(3) Sections 1002 and 1003 of the Department of Defense,
Emergency Supplemental Appropriations to Address Hurricanes in
the Gulf of Mexico, and Pandemic Influenza Act, 2006 (Public
Law 109-148).
Sec. 1312. Section 9007 of Public Law 109-289 is amended by
striking ``20'' and inserting ``287''.
Sec. 1313. Inspection of Military Medical Treatment Facilities,
Military Quarters Housing Medical Hold Personnel, and Military Quarters
Housing Medical Holdover Personnel. (a) Periodic Inspection Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of Defense shall inspect each facility of the
Department of Defense as follows:
(A) Each military medical treatment facility.
(B) Each military quarters housing medical hold
personnel.
(C) Each military quarters housing medical holdover
personnel.
(2) Purpose.--The purpose of an inspection under this
subsection is to ensure that the facility or quarters concerned
meets acceptable standards for the maintenance and operation of
medical facilities, quarters housing medical hold personnel, or
quarters housing medical holdover personnel, as applicable.
(b) Acceptable Standards.--For purposes of this section, acceptable
standards for the operation and maintenance of military medical
treatment facilities, military quarters housing medical hold personnel,
or military quarters housing medical holdover personnel are each of the
following:
(1) Generally accepted standards for the accreditation of
non-military medical facilities, or for facilities used to
quarter individuals with medical conditions that may require
medical supervision, as applicable, in the United States.
(2) Standards under the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.).
(c) Additional Inspections on Identified Deficiencies.--
(1) In general.--In the event a deficiency is identified
pursuant to subsection (a) at a facility or quarters described
in paragraph (1) of that subsection--
(A) the commander of such facility or quarters, as
applicable, shall submit to the Secretary a detailed
plan to correct the deficiency; and
(B) the Secretary shall reinspect such facility or
quarters, as applicable, not less often than once every
180 days until the deficiency is corrected.
(2) Construction with other inspections.--An inspection of
a facility or quarters under this subsection is in addition to
any inspection of such facility or quarters under subsection
(a).
(d) Reports on Inspections.--A complete copy of the report on each
inspection conducted under subsections (a) and (c) shall be submitted
in unclassified form to the applicable military medical command and to
the congressional defense committees.
(e) Report on Standards.--In the event no standards for the
maintenance and operation of military medical treatment facilities,
military quarters housing medical hold personnel, or military quarters
housing medical holdover personnel exist as of the date of the
enactment of this Act, or such standards as do exist do not meet
acceptable standards for the maintenance and operation of such
facilities or quarters, as the case may be, the Secretary shall, not
later than 30 days after that date, submit to Congress a report setting
forth the plan of the Secretary to ensure--
(1) the adoption by the Department of standards for the
maintenance and operation of military medical facilities,
military quarters housing medical hold personnel, or military
quarters housing medical holdover personnel, as applicable,
that meet--
(A) acceptable standards for the maintenance and
operation of such facilities or quarters, as the case
may be; and
(B) standards under the Americans with Disabilities
Act of 1990; and
(2) the comprehensive implementation of the standards
adopted under paragraph (1) at the earliest date practicable.
Sec. 1314. From funds made available for the ``Iraq Security Forces
Fund'' for fiscal year 2007, up to $155,500,000 may be used,
notwithstanding any other provision of law, to provide assistance, with
the concurrence of the Secretary of State, to the Government of Iraq to
support the disarmament, demobilization, and reintegration of militias
and illegal armed groups.
Sec. 1315. Revision of United States Policy on Iraq. (a)
Findings.--Congress makes the following findings:
(1) Congress and the American people will continue to
support and protect the members of the United States Armed
Forces who are serving or have served bravely and honorably in
Iraq.
(2) The circumstances referred to in the Authorization for
Use of Military Force Against Iraq Resolution of 2002 (Public
Law 107-243) have changed substantially.
(3) United States troops should not be policing a civil
war, and the current conflict in Iraq requires principally a
political solution.
(4) United States policy on Iraq must change to emphasize
the need for a political solution by Iraqi leaders in order to
maximize the chances of success and to more effectively fight
the war on terror.
(b) Prompt Commencement of Phased Redeployment of United States
Forces From Iraq.--
(1) Transition of mission.--The President shall promptly
transition the mission of United States forces in Iraq to the
limited purposes set forth in paragraph (2).
(2) Commencement of phased redeployment from iraq.--The
President shall commence the phased redeployment of United
States forces from Iraq not later than 120 days after the date
of the enactment of this Act, with the goal of redeploying, by
March 31, 2008, all United States combat forces from Iraq
except for a limited number that are essential for the
following purposes:
(A) Protecting United States and coalition
personnel and infrastructure.
(B) Training and equipping Iraqi forces.
(C) Conducting targeted counter-terrorism
operations.
(3) Comprehensive strategy.--Paragraph (2) shall be
implemented as part of a comprehensive diplomatic, political,
and economic strategy that includes sustained engagement with
Iraq's neighbors and the international community for the
purpose of working collectively to bring stability to Iraq.
(4) Reports required.--Not later than 60 days after the
date of the enactment of this Act, and every 90 days
thereafter, the President shall submit to Congress a report on
the progress made in transitioning the mission of the United
States forces in Iraq and implementing the phased redeployment
of United States forces from Iraq as required under this
subsection, as well as a classified campaign plan for Iraq,
including strategic and operational benchmarks and projected
redeployment dates of United States forces from Iraq.
(c) Benchmarks for the Government of Iraq.--
(1) Sense of congress.--It is the sense of Congress that--
(A) achieving success in Iraq is dependent on the
Government of Iraq meeting specific benchmarks, as
reflected in previous commitments made by the
Government of Iraq, including--
(i) deploying trained and ready Iraqi
security forces in Baghdad;
(ii) strengthening the authority of Iraqi
commanders to make tactical and operational
decisions without political intervention;
(iii) disarming militias and ensuring that
Iraqi security forces are accountable only to
the central government and loyal to the
constitution of Iraq;
(iv) enacting and implementing legislation
to ensure that the energy resources of Iraq
benefit all Iraqi citizens in an equitable
manner;
(v) enacting and implementing legislation
that equitably reforms the de-Ba'athification
process in Iraq;
(vi) ensuring a fair process for amending
the constitution of Iraq so as to protect
minority rights; and
(vii) enacting and implementing rules to
equitably protect the rights of minority
political parties in the Iraqi Parliament; and
(B) each benchmark set forth in subparagraph (A)
should be completed expeditiously and pursuant to a
schedule established by the Government of Iraq.
(2) Report.--Not later than 30 days after the date of the
enactment of this Act, and every 60 days thereafter, the
Commander, Multi-National Forces-Iraq and the United States
Ambassador to Iraq shall jointly submit to Congress a report
describing and assessing in detail the current progress being
made by the Government of Iraq in meeting the benchmarks set
forth in paragraph (1)(A).
Sec. 1316. Independent Assessment of Capabilities of the Iraqi
Security Forces. (a) Findings.--Congress makes the following findings:
(1) The responsibility for Iraq's internal security and
halting sectarian violence must rest primarily with the
Government of Iraq, relying on the Iraqi Security Forces (ISF).
(2) In quarterly reports to Congress, and in testimony
before a number of congressional committees, the Department of
Defense reported progress towards training and equipping Iraqi
Security Forces; however, the subsequent performance of the
Iraqi Security Forces has been uneven and occasionally appeared
inconsistent with those reports.
(3) On November 15, 2005, President Bush said, ``The plan
[is] that we will train Iraqi troops to be able to take the
fight to the enemy. And as I have consistently said, as the
Iraqis stand up, we will stand down''.
(4) On January 10, 2007, the President announced a new
strategy, which consists of three basic elements: diplomatic,
economic, and military; the central component of the military
element being an augmentation of the present level of the U.S.
military forces with more than 20,000 additional U.S. military
troops to Iraq to ``work alongside Iraqi units and be embedded
in their formations. Our troops will have a well-defined
mission: to help Iraqis clear and secure neighborhoods, to help
them protect the local population, and to help ensure that the
Iraqi forces left behind are capable of providing the security
that Baghdad needs''.
(5) The President said on January 10, 2007, that ``I've
made it clear to the Prime Minister and Iraq's other leaders
that America's commitment is not open-ended'' so as to dispel
the contrary impression that exists.
(6) The latest National Intelligence Estimate (NIE) on
Iraq, entitled ``Prospects for Iraq's Stability: A Challenging
Road Ahead,'' released in January 2007, found: ``If
strengthened Iraqi Security Forces (ISF), more loyal to the
government and supported by Coalition forces, are able to
reduce levels of violence and establish more effective security
for Iraq's population, Iraqi leaders could have an opportunity
to begin the process of political compromise necessary for
longer term stability, political progress, and economic
recovery''.
(7) The NIE also stated that ``[d]espite real improvements,
the Iraqi Security Forces (ISF)--particularly the Iraqi
police--will be hard pressed in the next 12-18 months to
execute significantly increased security responsibilities''.
(8) The current and prospective readiness of the ISF is
critical to (A) the long term stability of Iraq, (B) the force
protection of U.S. forces conducting combined operations with
the ISF; and (C) the scale of U.S. forces deployed to Iraq.
(b) Independent Assessment of Capabilities of Iraqi Security
Forces.--
(1) In general.--Of the amount appropriated or otherwise
made available for the Department of Defense, $750,000 is
provided to commission an independent, private-sector entity,
which operates as a 501(c)(3) with recognized credentials and
expertise in military affairs, to prepare an independent report
assessing the following:
(A) The readiness of the Iraqi Security Forces
(ISF) to assume responsibility for maintaining the
territorial integrity of Iraq, denying international
terrorists a safe haven, and bringing greater security
to Iraq's 18 provinces in the next 12-18 months, and
bringing an end to sectarian violence to achieve
national reconciliation.
(B) The training; equipping; command, control and
intelligence capabilities; and logistics capacity of
the ISF.
(C) The likelihood that, given the ISF's record of
preparedness to date, following years of training and
equipping by US forces, the continued support of US
troops will contribute to the readiness of the ISF to
fulfill the missions outlined in subparagraph (A).
(2) Report.--Not later than 120 days after passage of this
Act, the designated private sector entity shall provide an
unclassified report, with a classified annex, containing its
findings, to the House and Senate Committees on Armed Services,
Appropriations, Foreign Relations, and Intelligence.
Sec. 1317. (a)(1) Notwithstanding any other provision of law, the
Secretary of Veterans Affairs (referred to in this section as the
``Secretary'') may convey to the State of Texas, without consideration,
all right, title, and interest of the United States in and to the
parcel of real property comprising the location of the Marlin, Texas,
Department of Veterans Affairs Medical Center.
(2) The property conveyed under paragraph (1) shall be used by the
State of Texas for the purposes of a prison.
(b) In carrying out the conveyance under subsection (a), the
Secretary--
(1) shall not be required to comply with, and shall not be
held liable under, any Federal law (including a regulation)
relating to the environment or historic preservation; but
(2) may, at the discretion of the Secretary, conduct
environmental cleanup on the parcel to be conveyed, at a cost
not to exceed $500,000, using amounts made available for
environmental cleanup of sites under the jurisdiction of the
Secretary.
Sec. 1318. Redevelopment of Industrial Sector in Iraq. Of the
amount appropriated or otherwise made available by this chapter under
the heading ``Iraq Freedom Fund'', up to $100,000,000 may be obligated
and expended for purposes of the Task Force to Improve Business and
Stability Operations in Iraq.
Sec. 1319. Additional Amount for Procurement, Marine Corps, for
Acceleration of Procurement of Additional 2,500 Mine Resistant Ambush
Protected Vehicles for the Armed Forces.--(a) Additional Amount.--The
amount appropriated by this chapter under the heading ``Procurement,
Marine Corps'' is hereby increased by $1,500,000,000, with the amount
of the increase to be available to the Marine Corps for the procurement
of an additional 2,500 Mine Resistant Ambush Protected (MRAP) vehicles
for the regular and reserve components of the Armed Forces by not later
than December 31, 2007.
(b) Supplement Not Supplant.--The amount available under subsection
(a) for the procurement of vehicles described in that subsection is in
addition to any other amounts available under this chapter for that
purpose.
CHAPTER 4
DEPARTMENT OF ENERGY
ATOMIC ENERGY DEFENSE ACTIVITIES
National Nuclear Security Administration
defense nuclear nonproliferation
For an additional amount for ``Defense Nuclear Nonproliferation'',
$63,000,000.
CHAPTER 5
DEPARTMENT OF HOMELAND SECURITY
United States Customs and Border Protection
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$140,000,000, to remain available until September 30, 2008.
air and marine interdiction, operations, maintenance, and procurement
For an additional amount for ``Air and Marine Interdiction,
Operations, Maintenance, and Procurement'', for air and marine
operations on the Northern Border and the Great Lakes, including the
final Northern Border air wing, $75,000,000, to remain available until
September 30, 2008.
Immigration and Customs Enforcement
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$20,000,000, to remain available until September 30, 2008.
Transportation Security Administration
aviation security
For an additional amount for ``Aviation Security'', $660,000,000;
of which $600,000,000 shall be for procurement and installation of
checked baggage explosives detection systems, to remain available until
expended; and $60,000,000 shall be for air cargo security, to remain
available until September 30, 2008.
federal air marshals
For an additional amount for ``Federal Air Marshals'', $15,000,000,
to remain available until September 30, 2008.
Preparedness
management and administration
For an additional amount for ``Office of the Chief Medical
Officer'' for nuclear preparedness and other activities, $18,000,000,
to remain available until September 30, 2008.
infrastructure protection and information security
For an additional amount for ``Infrastructure Protection and
Information Security'' for chemical site security activities,
$18,000,000, to remain available until September 30, 2008.
Federal Emergency Management Agency
administrative and regional operations
For an additional amount for ``Administrative and Regional
Operations'' for necessary expenses related to title V of the Homeland
Security Act of 2002 (6 U.S.C. 101 et seq. (as amended by section 611
of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C.
701 note; Public Law 109-295))), $20,000,000, to remain available until
September 30, 2008: Provided, That none of the funds available under
this heading may be obligated until the Committees on Appropriations of
the Senate and the House of Representatives receive and approve a plan
for expenditure.
state and local programs
For an additional amount for ``State and Local Programs'',
$850,000,000; of which $190,000,000 shall be for port security pursuant
to section 70107(l) of title 46 United States Code; $625,000,000 shall
be for intercity rail passenger transportation, freight rail, and
transit security grants; and $35,000,000 shall be for regional grants
and technical assistance to high risk urban areas for catastrophic
event planning and preparedness: Provided, That none of the funds made
available under this heading may be obligated for such regional grants
and technical assistance until the Committees on Appropriations of the
Senate and the House of Representatives receive and approve a plan for
expenditure: Provided further, That funds for such regional grants and
technical assistance shall remain available until September 30, 2008.
emergency management performance grants
For an additional amount for ``Emergency Management Performance
Grants'' for necessary expenses related to the Nationwide Plan Review,
$100,000,000.
United States Citizenship and Immigration Services
For an additional amount for expenses of ``United States
Citizenship and Immigration Services'' to address backlogs of security
checks associated with pending applications and petitions, $30,000,000,
to remain available until September 30, 2008: Provided, That none of
the funds made available under this heading shall be available for
obligation until the Secretary of Homeland Security, in consultation
with the United States Attorney General, submits to the Committees on
Appropriations of the Senate and the House of Representatives a plan to
eliminate the backlog of security checks that establishes information
sharing protocols to ensure United States Citizenship and Immigration
Services has the information it needs to carry out its mission.
Science and Technology
research, development, acquisition, and operations
For an additional amount for ``Research, Development, Acquisition,
and Operations'' for air cargo research, $15,000,000, to remain
available until expended.
Domestic Nuclear Detection Office
research, development, and operations
For an additional amount for ``Research, Development, and
Operations'' for non-container, rail, aviation and intermodal radiation
detection activities, $39,000,000, to remain available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 1501. None of the funds provided in this Act, or Public Law
109-295, shall be available to carry out section 872 of Public Law 107-
296.
Sec. 1502. Section 550 of the Department of Homeland Security
Appropriations Act, 2007 (6 U.S.C. 121 note) is amended by adding at
the end the following:
``(h) This section shall not preclude or deny any right of any
State or political subdivision thereof to adopt or enforce any
regulation, requirement, or standard of performance with respect to
chemical facility security that is more stringent than a regulation,
requirement, or standard of performance issued under this section, or
otherwise impair any right or jurisdiction of any State with respect to
chemical facilities within that State, unless there is an actual
conflict between this section and the law of that State.''.
Sec. 1503. Linking of Award Fees Under Department of Homeland
Security Contracts to Successful Acquisition Outcomes. The Secretary of
Homeland Security shall require that all contracts of the Department of
Homeland Security that provide award fees link such fees to successful
acquisition outcomes (which outcomes shall be specified in terms of
cost, schedule, and performance).
Sec. 1504. Domestic Preparedness Equipment Technical Assistance
Program. (a) Additional Amount for State and Local Programs.--The
amount appropriated or otherwise made available by this chapter under
the heading ``state and local programs'' is hereby increased by
$5,000,000.
(b) Availability for Domestic Preparedness Equipment Technical
Assistance Program.--Of the amount appropriated or otherwise made
available by this chapter under the heading ``state and local
programs'', as increased by subsection (a), $5,000,000 shall be
available for the Domestic Preparedness Equipment Technical Assistance
Program (DPETAP).
(c) Offset.--The amount appropriated or otherwise made available by
this chapter under the heading ``United States Citizenship and
Immigration Services'' is hereby reduced by $5,000,000.
CHAPTER 6
MILITARY CONSTRUCTION
Military Construction, Army
For an additional amount for ``Military Construction, Army'',
$1,261,390,000, to remain available until September 30, 2008: Provided,
That such funds may be obligated and expended to carry out planning and
design and military construction projects not otherwise authorized by
law: Provided further, That of the funds provided under this heading,
$280,300,000 shall not be obligated or expended until the Secretary of
Defense certifies that none of the funds are to be used for the purpose
of providing facilities for the permanent basing of U.S. military
personnel in Iraq.
Military Construction, Navy and Marine Corps
For an additional amount for ``Military Construction, Navy and
Marine Corps'', $347,890,000, to remain available until September 30,
2008: Provided, That such funds may be obligated and expended to carry
out planning and design and military construction projects not
otherwise authorized by law.
Military Construction, Air Force
For an additional amount for ``Military Construction, Air Force'',
$34,700,000, to remain available until September 30, 2008: Provided,
That such funds may be obligated and expended to carry out planning and
design and military construction projects not otherwise authorized by
law.
CHAPTER 7
DEPARTMENT OF STATE AND RELATED AGENCY
DEPARTMENT OF STATE
Administration of Foreign Affairs
diplomatic and consular programs
For an additional amount for ``Diplomatic and Consular Programs'',
$815,796,000, to remain available until September 30, 2008, of which
$70,000,000 for World Wide Security Upgrades is available until
expended: Provided, That of the funds appropriated under this heading,
not more than $20,000,000 shall be made available for public diplomacy
programs: Provided further, That prior to the obligation of funds
pursuant to the previous proviso, the Secretary of State shall submit a
report to the Committees on Appropriations describing a comprehensive
public diplomacy strategy, with goals and expected results, for fiscal
years 2007 and 2008: Provided further, That within 15 days of enactment
of this Act, the Office of Management and Budget shall apportion
$15,000,000 from amounts appropriated or otherwise made available by
chapter 8 of title II of division B of Public Law 109-148 under the
heading ``Emergencies in the Diplomatic and Consular Service'' for
emergency evacuations: Provided further, That of the amount made
available under this heading for Iraq, not to exceed $20,000,000 may be
transferred to, and merged with, funds in the ``Emergencies in the
Diplomatic and Consular Service'' appropriations account, to be
available only for emergency evacuations and terrorism rewards.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$36,500,000, to remain available until December 31, 2008: Provided,
That of the funds appropriated under this heading, not less than
$1,500,000 shall be made available for activities related to oversight
of assistance furnished for Iraq and Afghanistan with funds
appropriated in this Act and in prior appropriations Acts: Provided
further, That $35,000,000 of these funds shall be transferred to the
Special Inspector General for Iraq Reconstruction for reconstruction
oversight.
educational and cultural exchange programs
For an additional amount for ``Educational and Cultural Exchange
Programs'', $25,000,000, to remain available until expended.
International Organizations
contributions to international organizations
For an additional amount for ``Contributions to International
Organizations'', $59,000,000, to remain available until September 30,
2008.
contributions for international peacekeeping activities
For an additional amount for ``Contributions for International
Peacekeeping Activities'', $200,000,000, to remain available until
September 30, 2008.
RELATED AGENCY
Broadcasting Board of Governors
international broadcasting operations
For an additional amount for ``International Broadcasting
Operations'' for activities related to broadcasting to the Middle East,
$10,000,000, to remain available until September 30, 2008.
FOREIGN OPERATIONS
BILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
United States Agency for International Development
child survival and health programs fund
For an additional amount for ``Child Survival and Health Programs
Fund'', $161,000,000, to remain available until September 30, 2008:
Provided, That notwithstanding any other provision of law, funds made
available under the heading ``Millennium Challenge Corporation'' and
``Global HIV/AIDS Initiative'' in prior Acts making appropriations for
foreign operations, export financing and related programs may be made
available to combat the avian influenza, subject to the regular
notification procedures of the Committees on Appropriations.
international disaster and famine assistance
For an additional amount for ``International Disaster and Famine
Assistance'', $187,000,000, to remain available until expended:
Provided, That of the funds appropriated under this heading, not less
than $65,000,000 shall be made available for assistance for internally
displaced persons in Iraq, not less than $18,000,000 shall be made
available for emergency shelter, fuel and other assistance for
internally displaced persons in Afghanistan, not less than $10,000,000
shall be made available for assistance for northern Uganda, not less
than $10,000,000 shall be made available for assistance for eastern
Democratic Republic of the Congo, and not less than $10,000,000 shall
be made available for assistance for Chad.
operating expenses of the united states agency for international
development
For an additional amount for ``Operating Expenses of the United
States Agency for International Development'', $5,700,000, to remain
available until September 30, 2008.
operating expenses of the united states agency for international
development office of inspector general
For an additional amount for ``Operating Expenses of the United
States Agency for International Development Office of Inspector
General'', $4,000,000, to remain available until September 30, 2008:
Provided, That of the funds appropriated under this heading, not less
than $3,000,000 shall be made available for activities related to
oversight of assistance furnished for Iraq with funds appropriated in
this Act and in prior appropriations Acts, and not less than $1,000,000
shall be made available for activities related to oversight of
assistance furnished for Afghanistan with funds appropriated in this
Act and in prior appropriations Acts.
OTHER BILATERAL ECONOMIC ASSISTANCE
Economic Support Fund
For an additional amount for ``Economic Support Fund'',
$2,602,200,000, to remain available until September 30, 2008: Provided,
That of the funds appropriated under this heading that are available
for assistance for Iraq, not less than $100,000,000 shall be made
available to the United States Agency for International Development for
continued support for its Community Action Program in Iraq, of which
not less than $5,000,000 shall be made available for the fund
established by section 2108 of Public Law 109-13: Provided further,
That of the funds appropriated under this heading that are available
for assistance for Afghanistan, not less than $10,000,000 shall be made
available to the United States Agency for International Development for
continued support for its Afghan Civilian Assistance Program: Provided
further, That of the funds appropriated under this heading, not less
than $6,000,000 shall be made available for assistance for elections,
reintegration of ex-combatants, and other assistance to support the
peace process in Nepal: Provided further, That of the funds
appropriated under this heading, not less than $3,200,000 shall be made
available, notwithstanding any other provision of law, for assistance
for Vietnam for environmental remediation of dioxin storage sites and
to support health programs in communities near those sites: Provided
further, That funds made available pursuant to the previous proviso
should be matched, to the maximum extent possible, with contributions
from other governments, multilateral organizations, and private
sources: Provided further, That of the funds made available under this
heading, not less than $6,000,000 shall be made available for typhoon
reconstruction assistance for the Philippines: Provided further, That
of the funds made available under this heading, not less than
$110,000,000 shall be made available for assistance for Pakistan, of
which not less than $5,000,000 shall be made available for political
party development and election monitoring activities: Provided further,
That of the funds appropriated under this heading, not less than
$2,000,000 shall be made available to support the peace process in
northern Uganda: Provided further, That of the funds made available
under the heading ``Economic Support Fund'' in Public Law 109-234 for
Iraq to promote democracy, rule of law and reconciliation, $2,000,000
should be made available for the United States Institute of Peace for
programs and activities in Afghanistan to remain available until
September 30, 2008.
DEPARTMENT OF STATE
Assistance for Eastern Europe and the Baltic States
For an additional amount for ``Assistance for Eastern Europe and
the Baltic States'', $214,000,000, to remain available until September
30, 2008, for assistance for Kosovo.
Democracy Fund
For an additional amount for ``Democracy Fund'', $465,000,000, to
remain available until September 30, 2008: Provided, That of the funds
appropriated under this heading, not less than $385,000,000 shall be
made available for the Human Rights and Democracy Fund of the Bureau of
Democracy, Human Rights and Labor, Department of State, for democracy,
human rights, and rule of law programs in Iraq: Provided further, That
prior to the initial obligation of funds made available under this
heading for Iraq for the Political Participation Fund or the National
Institutions Fund, the Secretary of State shall submit a report to the
Committees on Appropriations describing a comprehensive, long-term
strategy, with goals and expected results, for strengthening and
advancing democracy in Iraq: Provided further, That of the funds
appropriated under this heading, not less than $5,000,000 shall be made
available for media and reconciliation programs in Somalia.
International Narcotics Control and Law Enforcement
(including rescission of funds)
For an additional amount for ``International Narcotics Control and
Law Enforcement'', $210,000,000, to remain available until September
30, 2008.
Of the amounts made available for procurement of a maritime patrol
aircraft for the Colombian Navy under this heading in Public Law 109-
234, $13,000,000 are rescinded.
Migration and Refugee Assistance
For an additional amount for ``Migration and Refugee Assistance'',
$143,000,000, to remain available until September 30, 2008: Provided,
That of the funds appropriated under this heading, not less than
$65,000,000 shall be made available for assistance for Iraqi refugees
including not less than $5,000,000 to rescue Iraqi scholars, and not
less than $18,000,000 shall be made available for assistance for Afghan
refugees.
United States Emergency Refugee and Migration Assistance Fund
For an additional amount for ``United States Emergency Refugee and
Migration Assistance Fund'', $55,000,000, to remain available until
expended.
Nonproliferation, Anti-terrorism, Demining and Related Programs
For an additional amount for ``Nonproliferation, Anti-Terrorism,
Demining and Related Programs'', $27,500,000, to remain available until
September 30, 2008.
DEPARTMENT OF THE TREASURY
International Affairs Technical Assistance Program
For an additional amount for ``International Affairs Technical
Assistance'', $2,750,000, to remain available until September 30, 2008.
MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
Foreign Military Financing Program
For an additional amount for ``Foreign Military Financing
Program'', $220,000,000, to remain available until September 30, 2008,
for assistance for Lebanon.
Peacekeeping Operations
(including transfer of funds)
For an additional amount for ``Peacekeeping Operations'',
$323,000,000, to remain available until September 30, 2008, of which up
to $128,000,000 may be transferred, subject to the regular notification
procedures of the Committees on Appropriations, to ``Contributions to
International Peacekeeping Activities'', to be made available,
notwithstanding any other provision of law, for assessed costs of
United Nations Peacekeeping Missions: Provided, That of the funds
appropriated under this heading, not less than $45,000,000 shall be
made available, notwithstanding section 660 of the Foreign Assistance
Act of 1961, for assistance for Liberia for security sector reform.
GENERAL PROVISIONS--THIS CHAPTER
authorization of funds
Sec. 1701. Funds appropriated by this title may be obligated and
expended notwithstanding section 10 of Public Law 91-672 (22 U.S.C.
2412), section 15 of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2680), section 313 of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and section 504(a)(1)
of the National Security Act of 1947 (50 U.S.C. 414(a)(1)).
extension of availability of funds
Sec. 1702. Section 1302(a) of Public Law 109-234 is amended by
striking ``one additional year'' and inserting in lieu thereof ``two
additional years''.
extension of oversight authority
Sec. 1703. Section 3001(o)(1)(B) of the Emergency Supplemental
Appropriations Act for Defense and for the Reconstruction of Iraq and
Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App.,
note to section 8G of Public Law 95-452), as amended by section 1054(b)
of the John Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364; 120 Stat. 2397) and section 2 of the Iraq
Reconstruction Accountability Act of 2006 (Public Law 109-440), is
amended by inserting ``or fiscal year 2007'' after ``fiscal year
2006''.
debt restructuring
Sec. 1704. Amounts appropriated for fiscal year 2007 for
``Bilateral Economic Assistance--Department of the Treasury--Debt
Restructuring'' may be used to assist Liberia in retiring its debt
arrearages to the International Monetary Fund, the International Bank
for Reconstruction and Development, and the African Development Bank.
jordan
(including transfer of funds)
Sec. 1705. Of the funds appropriated by this Act for assistance for
Iraq under the heading ``Economic Support Fund'' that are available to
support Provincial Reconstruction Team activities, up to $100,000,000
may be transferred to, and merged with, funds appropriated by this Act
under the headings ``Foreign Military Financing Program'' and
``Nonproliferation, Anti-terrorism, Demining and Related Programs'' for
assistance for Jordan: Provided, That funds transferred pursuant to
this section shall be subject to the regular notification procedures of
the Committees on Appropriations.
lebanon
Sec. 1706. Prior to the initial obligation of funds made available
in this Act for assistance for Lebanon under the headings ``Foreign
Military Financing Program'' and ``Nonproliferation, Anti-terrorism,
Demining and Related Programs'', the Secretary of State shall certify
to the Committees on Appropriations that all practicable efforts have
been made to ensure that such assistance is not provided to or through
any individual, or private or government entity, that advocates, plans,
sponsors, engages in, or has engaged in, terrorist activity: Provided,
That this section shall be effective notwithstanding section 534(a) of
Public Law 109-102, which is made applicable to funds appropriated for
fiscal year 2007 by the Continuing Appropriations Resolution, 2007, as
amended.
human rights and democracy fund
Sec. 1707. The Assistant Secretary of State for Democracy, Human
Rights and Labor shall be responsible for all policy, funding, and
programming decisions regarding funds made available under this Act and
prior Acts making appropriations for foreign operations, export
financing and related programs for the Human Rights and Democracy Fund
of the Bureau of Democracy, Human Rights and Labor.
inspector general oversight of iraq and afghanistan
Sec. 1708. (a) In General.--Subject to paragraph (2), the Inspector
General of the Department of State and the Broadcasting Board of
Governors (referred to in this section as the ``Inspector General'')
may use personal services contracts to engage citizens of the United
States to facilitate and support the Office of the Inspector General's
oversight of programs and operations related to Iraq and Afghanistan.
Individuals engaged by contract to perform such services shall not, by
virtue of such contract, be considered to be employees of the United
States Government for purposes of any law administered by the Office of
Personnel Management. The Secretary of State may determine the
applicability to such individuals of any law administered by the
Secretary concerning the performance of such services by such
individuals.
(b) Conditions.--The authority under paragraph (1) is subject to
the following conditions:
(1) The Inspector General determines that existing
personnel resources are insufficient.
(2) The contract length for a personal services contractor,
including options, may not exceed 1 year, unless the Inspector
General makes a finding that exceptional circumstances justify
an extension of up to 2 additional years.
(3) Not more than 20 individuals may be employed at any
time as personal services contractors under the program.
(c) Termination of Authority.--The authority to award personal
services contracts under this section shall terminate on December 31,
2008. A contract entered into prior to the termination date under this
paragraph may remain in effect until not later than December 31, 2009.
(d) Other Authorities Not Affected.--The authority under this
section is in addition to any other authority of the Inspector General
to hire personal services contractors.
funding tables
Sec. 1709. (a) Funds provided in this Act for the following
accounts shall be made available for programs and countries in the
amounts contained in the respective tables included in the report
accompanying this Act:
``Diplomatic and Consular Programs''.
``Educational and Cultural Exchange Programs''.
``International Disaster and Famine Assistance''.
``Economic Support Fund''.
``Assistance for Eastern Europe and Baltic States''.
``Democracy Fund''.
``Migration and Refugee Assistance''.
``Nonproliferation, Anti-Terrorism, Demining and Related
Programs''.
``Peacekeeping Operations''.
(b) Any proposed increases or decreases to the amounts contained in
the tables in the accompanying report shall be subject to the regular
notification procedures of the Committees on Appropriations and section
634A of the Foreign Assistance Act of 1961.
benchmarks for certain reconstruction assistance for iraq
Sec. 1710. (a) Benchmarks.--Notwithstanding any other provision of
law, fifty percent of the funds appropriated by this Act for assistance
for Iraq under the headings ``Economic Support Fund'' and
``International Narcotics and Law Enforcement'' shall be withheld from
obligation until the President certifies to the Committees on
Appropriations and Foreign Relations of the Senate and the Committees
on Appropriations and Foreign Affairs of the House of Representatives
that the Government of Iraq has--
(1) enacted a broadly accepted hydro-carbon law that
equitably shares oil revenues among all Iraqis;
(2) adopted legislation necessary for the conduct of
provincial and local elections, taken steps to implement such
legislation, and set a schedule to conduct provincial and local
elections;
(3) reformed current laws governing the de-Baathification
process to allow for more equitable treatment of individuals
affected by such laws;
(4) amended the Constitution of Iraq consistent with the
principles contained in Article 137 of such constitution; and
(5) allocated and begun expenditure of $10,000,000,000 in
Iraqi revenues for reconstruction projects, including delivery
of essential services, on an equitable basis.
(b) Exemptions.--The requirement to withhold funds from obligation
pursuant to subsection (a) shall not apply with respect to funds made
available under the heading ``Economic Support Fund'' that are
administered by the United States Agency for International Development
for continued support for the Community Action Program, assistance for
civilian victims of the military operations, and the Community
Stabilization Program in Iraq, or for programs and activities to
promote democracy, governance, human rights, and rule of law.
(c) Report.--At the time the President certifies to the Committees
on Appropriations and Foreign Relations of the Senate and the
Committees on Appropriations and Foreign Affairs of the House of
Representatives that the Government of Iraq has met the benchmarks
described in subsection (a), the President shall submit to such
Committees a report that contains a detailed description of the
specific actions that the Government of Iraq has taken to meet each of
the benchmarks referenced in the certification.
spending plan and notification procedures
Sec. 1711. Not later than 45 days after enactment of this Act the
Secretary of State shall submit to the Committees on Appropriations a
report detailing planned expenditures for funds appropriated under the
headings in this chapter, except for funds appropriated under the
headings ``International Disaster and Famine Assistance'', ``Office of
the United States Agency for International Development Inspector
General'', and ``Office of the Inspector General'': Provided, That
funds appropriated under the headings in this chapter, except for funds
appropriated under the headings named in this section, shall be subject
to the regular notification procedures of the Committees on
Appropriations.
civilian reserve corps
Sec. 1712. Of the funds appropriated by this Act under the headings
``diplomatic and consular programs'' and ``Economic Support Fund''
(except for the Community Action Program), up to $50,000,000 may be
made available to support and maintain a civilian reserve corps. Funds
made available under this section shall be subject to the regular
notification procedures of the Committees on Appropriations.
TITLE II
KATRINA RECOVERY, VETERANS' CARE AND FOR OTHER PURPOSES
CHAPTER 1
GENERAL PROVISION--THIS CHAPTER
emergency forestry conservation reserve program
Sec. 2101. Section 1231(k)(2) of the Food Security Act of 1985 (16
U.S.C. 3831(k)(2)) is amended by striking ``During calendar year 2006,
the'' and inserting ``The''.
CHAPTER 2
DEPARTMENT OF JUSTICE
Office of Justice Programs
state and local law enforcement assistance
For an additional amount for ``State and Local Law Enforcement
Assistance'', for discretionary grants authorized by subpart 2 of part
E, of title I of the Omnibus Crime Control and Safe Streets Act of
1968, notwithstanding the provisions of section 511 of said Act,
$170,000,000, to remain available until September 30, 2008: Provided,
That of the amount made available under this heading, $70,000,000 shall
be for local law enforcement initiatives in the gulf coast region
related to the aftermath of Hurricanes Katrina and Rita, of which no
less than $55,000,000 shall be for the State of Louisiana: Provided
further, That of the amount made available under this heading,
$100,000,000 shall be for reimbursing State and local law enforcement
entities for security and related costs, including overtime, associated
with the 2008 Presidential Candidate Nominating Conventions, of which
$50,000,000 shall be for the city of Denver, Colorado and $50,000,000
shall be for the city of St. Paul, Minnesota: Provided further, That
the Department of Justice shall report to the Committees on
Appropriations of the House and the Senate on a quarterly basis on the
expenditure of the funds provided in the previous proviso.
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', for necessary expenses related to fisheries disasters,
$165,900,000, to remain available until September 30, 2008: Provided,
That of the amount provided under this heading, the National Marine
Fisheries Service shall cause $60,400,000 to be distributed among
eligible recipients of assistance for the commercial fishery failure
designated under section 312(a) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1861a(a)) and declared by
the Secretary of Commerce on August 10, 2006: Provided further, That of
the amount provided under this heading, $105,500,000 shall be for
necessary expenses related to the consequences of Hurricanes Katrina
and Rita on shrimp and fishing industries.
procurement, acquisition, and construction
For an additional amount for ``Procurement, Acquisition and
Construction'', for necessary expenses related to disaster response and
preparedness of the Gulf of Mexico coast, $6,000,000, to remain
available until September 30, 2008.
fisheries disaster mitigation fund
For an additional amount for a ``Fisheries Disaster Mitigation
Fund'', $50,000,000, to remain available until expended for use in
mitigating the effects of commercial fisheries failures and fishery
resource disasters as determined under the Magnuson Stevens Act (16
U.S.C. 1801 et seq.) or the Interjurisdictional Fisheries Act (16
U.S.C. 4101 et seq.): Provided, That the Secretary of Commerce shall
obligate funds provided under this heading according to the Magnuson
Stevens Conservation Act, as amended, the Interjurisdictional Fisheries
Act, as amended, or other Acts as the Secretary determines to be
appropriate.
GENERAL PROVISION--THIS CHAPTER
Sec. 2201. Up to $48,000,000 of amounts made available to the
National Aeronautics and Space Administration in Public Law 109-148 and
Public Law 109-234 for emergency hurricane and other natural disaster-
related expenses may be used to reimburse hurricane-related costs
incurred by NASA in fiscal year 2005.
CHAPTER 3
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
construction
For an additional amount for ``Construction'' for necessary
expenses related to the consequences of Hurricane Katrina and other
hurricanes of the 2005 season, $150,000,000, to remain available until
expended, which may be used to continue construction of projects
related to interior drainage for the greater New Orleans metropolitan
area.
operation and maintenance
For an additional amount for ``Operation and Maintenance'' to
dredge navigation channels related to the consequences of Hurricane
Katrina and other hurricanes of the 2005 season, $3,000,000, to remain
available until expended.
flood control and coastal emergencies
For an additional amount for ``Flood Control and Coastal
Emergencies'', as authorized by section 5 of the Act of August 18, 1941
(33 U.S.C. 701n), for necessary expenses relating to the consequences
of Hurricanes Katrina and Rita and for other purposes, $1,557,700,000,
to remain available until expended: Provided, That $1,300,000,000 of
the amount provided may be used by the Secretary of the Army to carry
out projects and measures to provide the level of protection necessary
to achieve the certification required for the 100-year level of flood
protection in accordance with the national flood insurance program
under the base flood elevations in existence at the time of
construction of the enhancements for the West Bank and Vicinity and
Lake Ponchartrain and Vicinity, Louisiana, projects, as described under
the heading ``Flood Control and Coastal Emergencies'', in chapter 3 of
Public Law 109-148: Provided further, That $150,000,000 of the amount
provided may be used to support emergency operations, repairs and other
activities in response to flood, drought and earthquake emergencies as
authorized by law: Provided further, That $107,700,000 of the amount
provided may be used to implement the projects for hurricane storm
damage reduction, flood damage reduction, and ecosystem restoration
within Hancock, Harrison, and Jackson Counties, Mississippi
substantially in accordance with the Report of the Chief of Engineers
dated December 31, 2006, and entitled ``Mississippi, Coastal
Improvements Program Interim Report, Hancock, Harrison, and Jackson
Counties, Mississippi'': Provided further, That projects authorized for
implementation under this Chief's report shall be carried out at full
Federal expense, except that the non-Federal interests shall be
responsible for providing any lands, easements, rights-of-way, disposal
areas, and relocations required for construction of the project and for
all costs associated with operation and maintenance of the project:
Provided further, That any project using funds appropriated under this
heading shall be initiated only after non-Federal interests have
entered into binding agreements with the Secretary requiring the non-
Federal interests to pay 100 percent of the operation, maintenance,
repair, replacement, and rehabilitation costs of the project and to
hold and save the United States free from damages due to the
construction or operation and maintenance of the project, except for
damages due to the fault or negligence of the United States or its
contractors.
DEPARTMENT OF INTERIOR
Bureau of Reclamation
water and related resources
For an additional amount for ``Water and Related Resources'',
$18,000,000, to remain available until expended for drought assistance:
Provided, That drought assistance may be provided under the Reclamation
States Drought Emergency Act or other applicable Reclamation
authorities to assist drought plagued areas of the West.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2301. The Secretary is authorized and directed to reimburse
local governments for expenses they have incurred in storm-proofing
pumping stations, constructing safe houses for operators, and other
interim flood control measures in and around the New Orleans
metropolitan area, provided the Secretary determines those elements of
work and related expenses to be integral to the overall plan to ensure
operability of the stations during hurricanes, storms and high water
events and the flood control plan for the area.
Sec. 2302. The limitation concerning total project costs in section
902 of the Water Resources Development Act of 1986, as amended (33
U.S.C. 2280), shall not apply during fiscal year 2008 to any water
resources project for which funds were made available during fiscal
year 2007.
Sec. 2303. (a) The Secretary of the Army is authorized and directed
to utilize funds remaining available for obligation from the amounts
appropriated in chapter 3 of Public Law 109-234 under the heading
``Flood Control and Coastal Emergencies'' for projects in the greater
New Orleans metropolitan area to prosecute these projects in a manner
which promotes the goal of continuing work at an optimal pace, while
maximizing, to the greatest extent practicable, levels of protection to
reduce the risk of storm damage to people and property.
(b) The expenditure of funds as provided in subsection (a) may be
made without regard to individual amounts or purposes specified in
chapter 3 of Public Law 109-234.
(c) Any reallocation of funds that are necessary to accomplish the
goal established in subsection (a) are authorized. Reallocation of
funds in excess of $250,000,000 or 50 percent, whichever is less, of
the individual amounts specified in chapter 3 of Public Law 109-234
require notifications of the House and Senate Committees on
Appropriation.
Sec. 2304. The Chief of Engineers shall investigate the overall
technical advantages, disadvantages and operational effectiveness of
operating the new pumping stations at the mouths of the 17th Street,
Orleans Avenue and London Avenue canals in the New Orleans area
directed for construction in Public Law 109-234 concurrently or in
series with existing pumping stations serving these canals and the
advantages, disadvantages and technical operational effectiveness of
removing the existing pumping stations and configuring the new pumping
stations and associated canals to handle all needed discharges; and the
advantages, disadvantages and technical operational effectiveness of
replacing or improving the floodwalls and levees adjacent to the three
outfall canals: Provided, That the analysis should be conducted at
Federal expense: Provided further, That the analysis shall be completed
and furnished to the Congress not later than three months after
enactment of this Act.
Sec. 2305. Using funds made available in Chapter 3 under title II
of Public Law 109-234 (120 Stat. 453), under the heading
``Investigations'', the Secretary of the Army, in consultation with
other agencies and the State of Louisiana shall accelerate completion
as practicable the final report of the Chief of Engineers recommending
a comprehensive plan to deauthorize deep draft navigation on the
Mississippi River Gulf Outlet: Provided, That the plan shall
incorporate and build upon the Interim Mississippi River Gulf Outlet
Deep-Draft De-Authorization Report submitted to Congress in December
2006 pursuant to Public Law 109-234.
Sec. 2306. (a) Section 111 of Public Law 108-137 (117 Stat. 1835)
is amended by--
(1) adding the following language at the end of subsection
(a):
``Such activities also may include the provision of financial
assistance to facilitate the buy-out of properties located in areas
identified by the State of Oklahoma as areas that are or will be at
risk of damage caused by land subsidence and other necessary and
closely associated properties otherwise identified by the State of
Oklahoma; however, any buyout of such properties shall not be
considered to be part of a Federally assisted program or project for
purposes of 42 U.S.C. 4601 et. seq., consistent with section 2301 of
Public Law 109-234 (120 Stat. 455-456).''; and
(2) striking the first sentence of subsection (d) and
inserting the following language in lieu thereof:
``(d) Non-Federal interests shall be responsible for operating and
maintaining any restoration alternatives constructed or carried out
pursuant to this section.''.
CHAPTER 4
SMALL BUSINESS ADMINISTRATION
Disaster Loans Program Account
(including transfer of funds)
For an additional amount for ``Disaster Loans Program Account'' for
administrative expenses to carry out the disaster loan program,
$25,069,000, to remain available until expended, which may be
transferred to and merged with ``Small Business Administration,
Salaries and Expenses''.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2401. Economic Injury Disaster Loans. (a) Definitions.--In
this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``covered small business concern'' means a
small business concern--
(A) that is located in any area in Louisiana or
Mississippi for which the President declared a major
disaster because of Hurricane Katrina of 2005 or
Hurricane Rita of 2005;
(B) that has not more than 50 full-time employees;
and
(C) that--
(i)(I) suffered a substantial economic
injury as a result of Hurricane Katrina of 2005
or Hurricane Rita of 2005, because of a
reduction in travel or tourism to the area
described in subparagraph (A); and
(II) demonstrates that, during the 1-year
period ending on August 28, 2005, not less than
45 percent of the revenue of that small
business concern resulted from tourism or
travel related sales; or
(ii)(I) suffered a substantial economic
injury as a result of Hurricane Katrina of 2005
or Hurricane Rita of 2005; and
(II) operates in a parish or county for
which the population on the date of enactment
of this Act, as determined by the
Administrator, is not greater than 75 percent
of the population of that parish or county
before August 28, 2005, based on the most
recent United States population estimate
available before August 28, 2005;
(3) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
(4) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Appropriation.--
(1) In general.--There are appropriated, out of any money
in the Treasury not otherwise appropriated, $25,000,000 to the
Administrator, which, except as provided in paragraph (2) or
(3), shall be used for loans under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) to covered small business
concerns.
(2) Administrative expenses.--Of the amounts made available
under paragraph (1), not more than $8,750,000 may be
transferred to and merged with ``Salaries and Expenses'' to
carry out the disaster loan program of the Small Business
Administration.
(3) Other uses of funds.--The Administrator may use amounts
made available under paragraph (1) for other purposes
authorized for amounts in the ``Disaster Loans Program
Account'' or transfer such amounts to and merge such amounts
with ``Salaries and Expenses'', if--
(A) such amounts are--
(i) not obligated on the later of 5 months
after the date of enactment of this Act and
August 29, 2007; or
(ii) necessary to provide assistance in the
event of a major disaster; and
(B) not later than 5 days before any such use or
transfer of amounts, the Administrator provides written
notification of such use or transfer to the Committee
on Appropriations of the Senate and the Committee on
Appropriations of the House of Representatives.
Sec. 2402. Other Programs. (a) HUBZones.--Section 3(p) of the Small
Business Act (15 U.S.C. 632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``or'';
(B) in subparagraph (E), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(F) an area in which the President has declared a
major disaster (as that term is defined in section 102
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122)) as a result of
Hurricane Katrina of August 2005 or Hurricane Rita of
September 2005, during the time period described in
paragraph (8).''; and
(2) by adding at the end the following:
``(8) Time period.--The time period for the purposes of
paragraph (1)(F)--
``(A) shall be the 2-year period beginning on the
later of the date of enactment of this paragraph and
August 29, 2007; and
``(B) may, at the discretion of the Administrator,
be extended to be the 3-year period beginning on the
later of the date of enactment of this paragraph and
August 29, 2007.''.
(b) Termination of Program.--Section 711(c) of the Small Business
Competitive Demonstration Program Act of 1988 (15 U.S.C. 644 note) is
amended by inserting after ``January 1, 1989'' the following: ``, and
shall terminate on the date of enactment of the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007''.
Sec. 2403. Reservist Programs. (a) Definitions.--In this section--
(1) the term ``activated'' means receiving an order placing
a Reservist on active duty;
(2) the term ``active duty'' has the meaning given that
term in section 101 of title 10, United States Code;
(3) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(4) the term ``Reservist'' means a member of a reserve
component of the Armed Forces, as described in section 10101 of
title 10, United States Code;
(5) the term ``Service Corps of Retired Executives'' means
the Service Corps of Retired Executives authorized by section
8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
(6) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632);
(7) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648); and
(8) the term ``women's business center'' means a women's
business center described in section 29 of the Small Business
Act (15 U.S.C. 656).
(b) Application Period.--Section 7(b)(3)(C) of the Small Business
Act (15 U.S.C. 636(b)(3)(C)) is amended by striking ``90 days'' and
inserting ``1 year''.
(c) Pre-consideration Process.--
(1) Definition.--In this subsection, the term ``eligible
Reservist'' means a Reservist who--
(A) has not been ordered to active duty;
(B) expects to be ordered to active duty during a
period of military conflict; and
(C) can reasonably demonstrate that the small
business concern for which that Reservist is a key
employee will suffer economic injury in the absence of
that Reservist.
(2) Establishment.--Not later than 6 months after the date
of enactment of this Act, the Administrator shall establish a
pre-consideration process, under which the Administrator--
(A) may collect all relevant materials necessary
for processing a loan to a small business concern under
section 7(b)(3) of the Small Business Act (15 U.S.C.
636(b)(3)) before an eligible Reservist employed by
that small business concern is activated; and
(B) shall distribute funds for any loan approved
under subparagraph (A) if that eligible Reservist is
activated.
(d) Outreach and Technical Assistance Program.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator, in consultation with
the Secretary of Veterans Affairs and the Secretary of Defense,
shall develop a comprehensive outreach and technical assistance
program (in this subsection referred to as the ``program'')
to--
(A) market the loans available under section
7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3))
to Reservists, and family members of Reservists, that
are on active duty and that are not on active duty; and
(B) provide technical assistance to a small
business concern applying for a loan under that
section.
(2) Components.--The program shall--
(A) incorporate appropriate websites maintained by
the Administration, the Department of Veterans Affairs,
and the Department of Defense; and
(B) require that information on the program is made
available to small business concerns directly through--
(i) the district offices and resource
partners of the Administration, including small
business development centers, women's business
centers, and the Service Corps of Retired
Executives; and
(ii) other Federal agencies, including the
Department of Veterans Affairs and the
Department of Defense.
(3) Report.--
(A) In general.--Not later than 6 months after the
date of enactment of this Act, and every 6 months
thereafter until the date that is 30 months after such
date of enactment, the Administrator shall submit to
Congress a report on the status of the program.
(B) Contents.--Each report submitted under
subparagraph (A) shall include--
(i) for the 6-month period ending on the
date of that report--
(I) the number of loans approved
under section 7(b)(3) of the Small
Business Act (15 U.S.C. 636(b)(3));
(II) the number of loans disbursed
under that section; and
(III) the total amount disbursed
under that section; and
(ii) recommendations, if any, to make the
program more effective in serving small
business concerns that employ Reservists.
CHAPTER 5
DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
disaster relief
For an additional amount for ``Disaster Relief'' for necessary
expenses under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), $4,310,000,000, to remain
available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2501. (a) In General.--Notwithstanding any other provision of
law, including any agreement, the Federal share of assistance,
including direct Federal assistance, provided for the States of
Louisiana, Mississippi, Alabama, and Texas in connection with
Hurricanes Katrina and Rita under sections 403, 406, 407, and 408 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170b, 5172, 5173, and 5174) shall be 100 percent of the
eligible costs under such sections.
(b) Applicability.--
(1) In general.--Subject to paragraph (2), the Federal
share provided by subsection (a) shall apply to disaster
assistance applied for before the date of enactment of this
Act.
(2) Limitation.--In the case of disaster assistance
provided under sections 403, 406, and 407 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, the
Federal share provided by subsection (a) shall be limited to
assistance provided for projects for which applications have
been prepared for the Federal Emergency Management Agency
before the date of enactment of this Act.
Sec. 2502. (a) Section 2(a) of the Community Disaster Loan Act of
2005 (Public Law 109-88; 119 Stat. 2061) is amended by striking ``:
Provided further, That notwithstanding section 417(c)(1) of the
Stafford Act, such loans may not be canceled''.
(b) Chapter 4 of title II of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and Hurricane
Recovery, 2006 (Public Law 109-234; 120 Stat. 471) is amended under the
heading ``Disaster Assistance Direct Loan Program Account'' under the
heading ``Federal Emergency Management Agency'' under the heading
``Department of Homeland Security'', by striking ``Provided further,
That notwithstanding section 417(c)(1) of such Act, such loans may not
be canceled:''.
Sec. 2503. Section 2401 of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and Hurricane
Recovery, 2006 (Public Law 109-234; 120 Stat. 460) is amended by
striking ``12 months'' and inserting ``24 months''.
CHAPTER 6
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
wildland fire management
(including transfer of funds)
For an additional amount for ``Wildland Fire Management'',
$100,000,000, to remain available until expended, for urgent wildland
fire suppression activities: Provided, That such funds shall only
become available if funds previously provided for wildland fire
suppression will be exhausted imminently and the Secretary of the
Interior notifies the House and Senate Committees on Appropriations in
writing of the need for these additional funds: Provided further, That
such funds are also available for repayment to other appropriations
accounts from which funds were transferred for wildfire suppression.
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'' for the
detection of highly pathogenic avian influenza in wild birds, including
the investigation of morbidity and mortality events, targeted
surveillance in live wild birds, and targeted surveillance in hunter-
taken birds, $7,398,000, to remain available until September 30, 2008.
National Park Service
operation of the national park system
For an additional amount for ``Operation of the National Park
System'' for the detection of highly pathogenic avian influenza in wild
birds, including the investigation of morbidity and mortality events,
$525,000, to remain available until September 30, 2008.
historic preservation fund
For an additional amount for the ``Historic Preservation Fund'' for
necessary expenses related to the consequences of Hurricane Katrina and
other hurricanes of the 2005 season, $15,000,000, to remain available
until September 30, 2008: Provided, That the funds provided under this
heading shall be provided to the State Historic Preservation Officer,
after consultation with the National Park Service, for grants for
disaster relief in areas of Louisiana impacted by Hurricanes Katrina or
Rita: Provided further, That grants shall be for the preservation,
stabilization, rehabilitation, and repair of historic properties listed
in or eligible for the National Register of Historic Places, for
planning and technical assistance: Provided further, That grants shall
only be available for areas that the President determines to be a major
disaster under section 102(2) of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122(2)) due to Hurricanes
Katrina or Rita: Provided further, That individual grants shall not be
subject to a non-Federal matching requirement: Provided further, That
no more than 5 percent of funds provided under this heading for
disaster relief grants may be used for administrative expenses.
United States Geological Survey
surveys, investigations, and research
For an additional amount for ``Surveys, Investigations, and
Research'' for the detection of highly pathogenic avian influenza in
wild birds, including the investigation of morbidity and mortality
events, targeted surveillance in live wild birds, and targeted
surveillance in hunter-taken birds, $5,270,000, to remain available
until September 30, 2008.
DEPARTMENT OF AGRICULTURE
Forest Service
national forest system
For an additional amount for ``National Forest System'' for the
implementation of a nationwide initiative to increase protection of
national forest lands from foreign drug-trafficking organizations,
including funding for additional law enforcement personnel, training,
equipment and cooperative agreements, $12,000,000, to remain available
until expended.
wildland fire management
(including transfer of funds)
For an additional amount for ``Wildland Fire Management'',
$400,000,000, to remain available until expended, for urgent wildland
fire suppression activities: Provided, That such funds shall only
become available if funds provided previously for wildland fire
suppression will be exhausted imminently and the Secretary of
Agriculture notifies the House and Senate Committees on Appropriations
in writing of the need for these additional funds: Provided further,
That such funds are also available for repayment to other appropriation
accounts from which funds were transferred for wildfire suppression.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2601. Secure Rural Schools and Community Self-Determination
Program. (a) Reauthorization of the Secure Rural Schools and Community
Self-Determination Act of 2000.--The Secure Rural Schools and Community
Self-Determination Act of 2000 (16 U.S.C. 500 note; Public Law 106-393)
is amended by striking sections 1 through 403 and inserting the
following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and Community
Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that
enhance forest ecosystems; and
``(iii) restore and improve land health and water
quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure
maintenance or obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem
health;
``(iv) watershed restoration and
maintenance;
``(v) the restoration, maintenance, and
improvement of wildlife and fish habitat;
``(vi) the control of noxious and exotic
weeds; and
``(vii) the reestablishment of native
species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal
land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible
county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the quotients
obtained under subparagraph (A) and paragraph (8)(A)
for all eligible counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land
described in paragraph (7)(A) in each eligible
county; by
``(ii) the total number acres of Federal
land in all eligible counties in all eligible
States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of
the 3 highest 25-percent payments and safety
net payments made to each eligible State for
each eligible county during the eligibility
period; by
``(ii) the amount equal to the sum of the
averages calculated under clause (i) and
paragraph (9)(B)(i) for all eligible counties
in all eligible States during the eligibility
period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section 101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in
paragraph (7)); and
``(B) elects to receive a share of the State
payment or the county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as
defined in section 11(a) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1609(a)) exclusive of the National Grasslands and land
utilization projects designated as National Grasslands
administered pursuant to the Act of July 22, 1937 (7
U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and
California Railroad and reconveyed Coos Bay Wagon Road
grant land as are or may hereafter come under the
jurisdiction of the Department of the Interior, which
have heretofore or may hereafter be classified as
timberlands, and power-site land valuable for timber,
that shall be managed, except as provided in the former
section 3 of the Act of August 28, 1937 (50 Stat. 875;
43 U.S.C. 1181c), for permanent forest production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient obtained
by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the
eligible county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the quotients
obtained under subparagraph (A) and paragraph (1)(A)
for all eligible counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land
described in paragraph (7)(B) in each eligible
county; by
``(ii) the total number acres of Federal
land in all eligible counties in all eligible
States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of
the 3 highest 50-percent payments made to each
eligible county during the eligibility period;
by
``(ii) the amount equal to the sum of the
averages calculated under clause (i) and
paragraph (2)(B)(i) for all eligible counties
in all eligible States during the eligibility
period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May 24,
1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $526,079,656 for fiscal year 2007;
``(B) $520,000,000 for fiscal year 2008; and
``(C) for fiscal year 2009 and each fiscal year
thereafter, the amount that is equal to 90 percent of
the full funding amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each
eligible county; by
``(B) the median per capita personal income of all
eligible counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee
of the Secretary of Agriculture with respect to the
Federal land described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee
of the Secretary of the Interior with respect to the
Federal land described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section 101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `forest service' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.
``(a) State Payment.--For each of fiscal years 2007 through 2011,
the Secretary of Agriculture shall calculate for each eligible State an
amount equal to the sum of the products obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2007 through 2011,
the Secretary of the Interior shall calculate for each eligible county
that received a 50-percent payment during the eligibility period an
amount equal to the product obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103, the
Secretary of the Treasury shall pay to--
``(1) a State an amount equal to the sum of the amounts
elected under subsection (b) by each county within the State
for--
``(A) if the county is eligible for the 25-percent
payment, the share of the 25-percent payment; or
``(B) the share of the State payment of the
eligible county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent
payment, the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election to Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share
of the State payment, the county payment, a share of
the State payment and the county payment, a share of
the 25-percent payment, the 50-percent payment, or a
share of the 25-percent payment and the 50-percent
payment, as applicable, shall be made at the discretion
of each affected county by August 1, 2007, and August 1
of each second fiscal year thereafter, in accordance
with paragraph (2), and transmitted to the Secretary
concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an
affected county is not transmitted to the Secretary
concerned by the date specified under subparagraph (A),
the affected county shall be considered to have elected
to receive a share of the State payment, the county
payment, or a share of the State payment and the county
payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a
share of the 25-percent payment or 50-percent payment,
as applicable shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to
receive a share of the State payment or the county
payment, the election shall be effective for all
subsequent fiscal years through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or
miscellaneous receipts, exclusive of deposits to any
relevant trust fund, special account, or permanent
operating funds, received by the Federal Government
from activities by the Bureau of Land Management or the
Forest Service on the applicable Federal land; and
``(B) to the extent of any shortfall, out of any
amounts in the Treasury of the United States not
otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36
Stat. 963; 16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1) shall
be expended as required by the laws referred to in paragraph
(1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent
payment or 50-percent payment, as applicable.--Except
as provided in paragraph (3)(B), if an eligible county
elects to receive its share of the State payment or the
county payment, not less than 80 percent, but not more
than 85 percent, of the funds shall be expended in the
same manner in which the 25-percent payments or 50-
percent payment, as applicable, are required to be
expended.
``(B) Election as to use of balance.--Except as
provided in subparagraph (C), an eligible county shall
elect to do 1 or more of the following with the balance
of any funds not expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance
for projects in accordance with title II.
``(ii) Reserve not more than 7 percent of
the total share for the eligible county of the
State payment or the county payment for
projects in accordance with title III.
``(iii) Return the portion of the balance
not reserved under clauses (i) and (ii) to the
Treasury of the United States.
``(C) Counties with modest distributions.--In the
case of each eligible county to which more than
$100,000, but less than $350,000, is distributed for
any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the
eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for
that fiscal year, shall--
``(i) reserve any portion of the balance
for--
``(I) carrying out projects under
title II;
``(II) carrying out projects under
title III; or
``(III) a combination of the
purposes described in subclauses (I)
and (II); or
``(ii) return the portion of the balance
not reserved under clause (i) to the Treasury
of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible
county under subparagraph (B)(i) or (C)(i)(I) of
paragraph (1) shall be deposited in a special account
in the Treasury of the United States.
``(B) Availability.--Amounts deposited under
subparagraph (A) shall--
``(i) be available for expenditure by the
Secretary concerned, without further
appropriation; and
``(ii) remain available until expended in
accordance with title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall
notify the Secretary concerned of an election
by the eligible county under this subsection
not later than September 30 of each fiscal
year.
``(ii) Failure to elect.--Except as
provided in subparagraph (B), if the eligible
county fails to make an election by the date
specified in clause (i), the eligible county
shall--
``(I) be considered to have elected
to expend 85 percent of the funds in
accordance with paragraph (1)(A); and
``(II) return the balance to the
Treasury of the United States.
``(B) Counties with minor distributions.--In the
case of each eligible county to which less than
$100,000 is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of
subsection (a), the eligible county may elect to expend
all the funds in the same manner in which the 25-
percent payments or 50-percent payments, as applicable,
are required to be expended.
``(e) Time for Payment.--The payments required under this section
for a fiscal year shall be made as soon as practicable after the end of
that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, OREGON,
AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2007--
``(i) the sum of the amounts paid in fiscal
year 2006 under section 102(a)(2) (as in effect
on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2007; and
``(ii) the sum of the amounts paid in
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2007;
``(B) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid in fiscal
year 2006 under section 102(a)(2) (as in effect
on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2008; and
``(ii) the sum of the amounts paid in
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2008;
``(C) for fiscal year 2009, 81 percent of--
``(i) the sum of the amounts paid in fiscal
year 2006 under section 102(a)(2) (as in effect
on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2009; and
``(ii) the sum of the amounts paid in
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2009; and
``(D) for fiscal year 2010, 73 percent of--
``(i) the sum of the amounts paid in fiscal
year 2006 under section 102(a)(2) (as in effect
on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2010; and
``(ii) the sum of the amounts paid in
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2007 through
2010, in lieu of the payment amounts that otherwise would have been
made under paragraphs (1)(B) and (2)(B) of section 102(a), the
Secretary of the Treasury shall pay the adjusted amount to each covered
State and the eligible counties within the covered State, as
applicable, from funds in the Treasury of the United States not
otherwise appropriated.
``(c) Distribution of Adjusted Amount in Oregon and Washington.--It
is the intent of Congress that the method of distributing the payments
under subsection (b) among the counties in the States of Oregon and
Washington for each of fiscal years 2007 through 2010 be in the same
proportion that the payments were distributed to the eligible counties
in fiscal year 2006.
``(d) Distribution of Payments in California.--The following
payments shall be distributed among the eligible counties in the State
of California in the same proportion that payments under section
102(a)(2) (as in effect on September 29, 2006) were distributed to the
eligible counties in fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year 2011.
``(e) Treatment of Payments.--For purposes of this Act, any payment
made under subsection (b) shall be considered to be a payment made
under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received under
section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to reserve
for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the
Secretary concerned under section 205; or
``(B) an advisory committee determined by the
Secretary concerned to meet the requirements of section
205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of
Land Management for units of the Federal land described
in section 3(7)(B) pursuant to section 202 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712); or
``(B) a land and resource management plan prepared
by the Forest Service for units of the National Forest
System pursuant to section 6 of the Forest and
Rangeland Renewable Resources Planning Act of 1974l (16
U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely on
projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the Secretary
concerned for the purpose of entering into and implementing cooperative
agreements with willing Federal agencies, State and local governments,
private and nonprofit entities, and landowners for protection,
restoration, and enhancement of fish and wildlife habitat, and other
resource objectives consistent with the purposes of this Act on Federal
land and on non-Federal land where projects would benefit the resources
on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2007, and each September 30
thereafter for each succeeding fiscal year through fiscal year
2011, each resource advisory committee shall submit to the
Secretary concerned a description of any projects that the
resource advisory committee proposes the Secretary undertake
using any project funds reserved by eligible counties in the
area in which the resource advisory committee has geographic
jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee established
under section 205.
``(b) Required Description of Projects.--In submitting proposed
projects to the Secretary concerned under subsection (a), a resource
advisory committee shall include in the description of each proposed
project the following information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or
negative impacts of the project, implementation, and
provides for validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or
exceeded desired ecological conditions; created
local employment or training opportunities,
including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use
of, or added value to, any products removed
from land consistent with the purposes of this
title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under subsection (a)
shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The Secretary
concerned may make a decision to approve a project submitted by a
resource advisory committee under section 203 only if the proposed
project satisfies each of the following conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this purpose,
the Secretary concerned shall conduct environmental review,
consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee
does not agree to the expenditure of funds under
paragraph (1), the project shall be deemed withdrawn
from further consideration by the Secretary concerned
pursuant to this title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of
the project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary
concerned to reject a proposed project shall be at the
sole discretion of the Secretary concerned.
``(B) No administrative appeal or judicial
review.--Notwithstanding any other provision of law, a
decision by the Secretary concerned to reject a
proposed project shall not be subject to administrative
appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days
after the date on which the Secretary concerned makes
the rejection decision, the Secretary concerned shall
notify in writing the resource advisory committee that
submitted the proposed project of the rejection and the
reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary concerned
accepts a project for review under section 203, the acceptance shall be
deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary concerned
may enter into contracts, grants, and cooperative agreements
with States and local governments, private and nonprofit
entities, and landowners and other persons to assist the
Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a
contract authorized by paragraph (1) the Secretary
concerned may elect a source for performance of the
contract on a best value basis.
``(B) Factors.--The Secretary concerned shall
determine best value based on such factors as--
``(i) the technical demands and complexity
of the work to be done;
``(ii)(I) the ecological objectives of the
project; and
``(II) the sensitivity of the resources
being treated;
``(iii) the past experience by the
contractor with the type of work being done,
using the type of equipment proposed for the
project, and meeting or exceeding desired
ecological conditions; and
``(iv) the commitment of the contractor to
hiring highly qualified workers and local
residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain
percentage of approved projects involving the sale of
merchantable timber using separate contracts for--
``(i) the harvesting or collection of
merchantable timber; and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program,
the Secretary concerned shall ensure that, on a
nationwide basis, not less than the following
percentage of all approved projects involving the sale
of merchantable timber are implemented using separate
contracts:
``(i) For fiscal year 2007, 25 percent.
``(ii) For fiscal year 2008, 35 percent.
``(iii) For fiscal year 2009, 45 percent.
``(iv) For each of fiscal years 2010 and
2011, 50 percent.
``(C) Inclusion in pilot program.--The decision
whether to use separate contracts to implement a
project involving the sale of merchantable timber shall
be made by the Secretary concerned after the approval
of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned
may use funds from any appropriated account
available to the Secretary for the Federal land
to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The
total amount obligated under this subparagraph
may not exceed $1,000,000 for any fiscal year
during which the pilot program is in effect.
``(E) Review and report.--
``(i) Initial report.--Not later than
September 30, 2009, the Comptroller General
shall submit to the Committees on Agriculture,
Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on
Agriculture and Natural Resources of the House
of Representatives a report assessing the pilot
program.
``(ii) Annual report.--The Secretary
concerned shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy
and Natural Resources of the Senate and the
Committees on Agriculture and Natural Resources
of the House of Representatives an annual
report describing the results of the pilot
program.
``(f) Requirements for Project Funds.--The Secretary shall ensure
that at least 50 percent of all project funds be used for projects that
are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to perform
the duties in subsection (b), except as provided in paragraph
(4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the
land management agencies consistent with the purposes
of this title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets
the requirements of this section, an advisory committee
established before the date of enactment of this Act,
or an advisory committee determined by the Secretary
concerned to meet the requirements of this section
before the date of enactment of this Act may be deemed
by the Secretary concerned to be a resource advisory
committee for the purposes of this title.
``(B) Charter.--A charter for a committee described
in subparagraph (A) that was filed on or before
September 29, 2006, shall be considered to be filed for
purposes of this Act.
``(C) Bureau of land management advisory
committees.--The Secretary of the Interior may deem a
resource advisory committee meeting the requirements of
subpart 1784 of part 1780 of title 43, Code of Federal
Regulations, as a resource advisory committee for the
purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A); and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall
appoint the members of resource advisory committees for
a term of 4 years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may
reappoint members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established meets
the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary concerned
shall make initial appointments to the resource advisory
committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-
timber forest product harvester groups;
``(ii) represent developed outdoor
recreation, off highway vehicle users, or
commercial recreation activities;
``(iii) represent--
``(I) energy and mineral
development interests; or
``(II) commercial or recreational
fishing interests;
``(iv) represent the commercial timber
industry; or
``(v) hold Federal grazing or other land
use permits, or represent nonindustrial private
forest land owners, within the area for which
the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental
organizations;
``(ii) regionally or locally recognized
environmental organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical
interests; or
``(v) nationally or regionally recognized
wild horse and burro interest groups, wildlife
or hunting organizations, or watershed
associations.
``(C) 5 persons that--
``(i) hold State elected office (or a
designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes
within or adjacent to the area for which the
committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at
large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each of
the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic staff
assistance from Federal employees under the jurisdiction of the
Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make the
records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the
level of agency overhead to be assessed against the
project.
``(C) For a multiyear project, the estimated cost
of the project for each of the fiscal years in which it
will be carried out.
``(D) The remedies for failure of the Secretary
concerned to comply with the terms of the agreement
consistent with current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise available
to the Secretary for the same purposes as the project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with regard
to a project to be funded in whole or in part using project
funds, or other funds described in section 203(a)(2), the
Secretary concerned shall transfer to the applicable unit of
National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a
single fiscal year, the total amount specified in the
agreement to be paid using project funds, or other
funds described in section 203(a)(2); or
``(B) in the case of a multiyear project, the
amount specified in the agreement to be paid using
project funds, or other funds described in section
203(a)(2) for the first fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the project,
have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent
fiscal years of a multiyear project to be funded in
whole or in part using project funds, the unit of
National Forest System land or Bureau of Land
Management District concerned shall use the amount of
project funds required to continue the project in that
fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned
shall suspend work on the project if the project funds
required by the agreement in the second and subsequent
fiscal years are not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--By
September 30 of each fiscal year through fiscal year 2011, a resource
advisory committee shall submit to the Secretary concerned pursuant to
section 203(a)(1) a sufficient number of project proposals that, if
approved, would result in the obligation of at least the full amount of
the project funds reserved by the participating county in the preceding
fiscal year.
``(b) Use or Transfer of Unobligated Funds.--Subject to section
208, if a resource advisory committee fails to comply with subsection
(a) for a fiscal year, any project funds reserved by the participating
county in the preceding fiscal year and remaining unobligated shall be
available for use as part of the project submissions in the next fiscal
year.
``(c) Effect of Rejection of Projects.--Subject to section 208, any
project funds reserved by a participating county in the preceding
fiscal year that are unobligated at the end of a fiscal year because
the Secretary concerned has rejected one or more proposed projects
shall be available for use as part of the project submissions in the
next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related to
the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under this
title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not obligated by
September 30, 2012, shall be deposited in the Treasury of the United
States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to reserve
for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received under
section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including any
applicable agencies of the participating county, shall use county
funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-sensitive
ecosystems education on, and assistance with implementing,
techniques in home siting, home construction, and home
landscaping that can increase the protection of people and
property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on
which the use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county funds for
a use described in subsection (a) only after a 45-day public comment
period, at the beginning of which the participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year after the
year in which any county funds were expended by a participating county,
the appropriate official of the participating county shall submit to
the Secretary concerned a certification that the county funds expended
in the applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts expended and the
uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the Secretary
concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under this
title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by September
30, 2012, shall be deposited in the Treasury of the United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the Interior
shall jointly issue regulations to carry out the purposes of this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated such
sums as are necessary to carry out this Act for each of fiscal years
2007 through 2011.
``(b) Emergency Designation.--Of the amounts authorized to be
appropriated under subsection (a) for fiscal year 2007, $425,000,000 is
designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress).
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made available under
section 402 and funds made available to a Secretary concerned under
section 206 shall be in addition to any other annual appropriations for
the Forest Service and the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues generated
from projects pursuant to title II, including any interest accrued from
the revenues, shall be deposited in the Treasury of the United
States.''.
(b) Forest Receipt Payments to Eligible States and Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``forest service'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through ``shall
be paid'' and inserting the following: ``an amount equal to the
annual average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid'' and
inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For each of fiscal years 2008 through 2012, such sums as are
authorized under this chapter shall be made available to the Secretary
of the Interior, out of any amounts in the Treasury not otherwise
appropriated, for obligation or expenditure in accordance with this
chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(d) Increase in Information Return Penalties.--
(1) Failure to file correct information returns.--
(A) In general.--Section 6721(a)(1) of the Internal
Revenue Code of 1986 is amended--
(i) by striking ``$50'' and inserting
``$250'', and
(ii) by striking ``$250,000'' and inserting
``$3,000,000''.
(B) Reduction where correction in specified
period.--
(i) Correction within 30 days.--Section
6721(b)(1) of such Code is amended--
(I) by striking ``$15'' and
inserting ``$50'',
(II) by striking ``$50'' and
inserting ``$250'', and
(III) by striking ``$75,000'' and
inserting ``$500,000''.
(ii) Failures corrected on or before august
1.--Section 6721(b)(2) of such Code is
amended--
(I) by striking ``$30'' and
inserting ``$100'',
(II) by striking ``$50'' and
inserting ``$250'', and
(III) by striking ``$150,000'' and
inserting ``$1,500,000''.
(C) Lower limitation for persons with gross
receipts of not more than $5,000,000.--Section
6721(d)(1) of such Code is amended--
(i) in subparagraph (A)--
(I) by striking ``$100,000'' and
inserting ``$1,000,000'', and
(II) by striking ``$250,000'' and
inserting ``$3,000,000'',
(ii) in subparagraph (B)--
(I) by striking ``$25,000'' and
inserting ``$175,000'', and
(II) by striking ``$75,000'' and
inserting ``$500,000'', and
(iii) in subparagraph (C)--
(I) by striking ``$50,000'' and
inserting ``$500,000'', and
(II) by striking ``$150,000'' and
inserting ``$1,500,000''.
(D) Penalty in case of intentional disregard.--
Section 6721(e) of such Code is amended--
(i) by striking ``$100'' in paragraph (2)
and inserting ``$500'',
(ii) by striking ``$250,000'' in paragraph
(3)(A) and inserting ``$3,000,000''.
(2) Failure to furnish correct payee statements.--
(A) In general.--Section 6722(a) of the Internal
Revenue Code of 1986 is amended--
(i) by striking ``$50'' and inserting
``$250'', and
(ii) by striking ``$100,000'' and inserting
``$1,000,000''.
(B) Penalty in case of intentional disregard.--
Section 6722(c) of such Code is amended--
(i) by striking ``$100'' in paragraph (1)
and inserting ``$500'', and
(ii) by striking ``$100,000'' in paragraph
(2)(A) and inserting ``$1,000,000''.
(3) Failure to comply with other information reporting
requirements.--Section 6723 of the Internal Revenue Code of
1986 is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting
``$1,000,000''.
(4) Effective date.--The amendments made by this section
shall apply with respect to information returns required to be
filed on or after January 1, 2008.
(e) Repeal of Suspension of Certain Penalties and Interest.--
(1) In general.--Section 6404 of the Internal Revenue Code
of 1986 is amended by striking subsection (g).
(2) Effective date.--
(A) In general.--Except as provided in paragraph
(2), the amendment made by this section shall apply to
notices provided by the Secretary of the Treasury, or
his delegate after the date which is 6 months after the
date of the enactment of this Act.
(B) Exception for certain taxpayers.--The amendment
made by this section shall not apply to any taxpayer
with respect to whom a suspension of any interest,
penalty, addition to tax, or other amount is in effect
on the date which is 6 months after the date of the
enactment of this Act.
(f) Participants in Government Section 457 Plans Allowed to Treat
Elective Deferrals as Roth Contributions.--
(1) In general.--Section 402A(e)(1) of the Internal Revenue
Code of 1986 (defining applicable retirement plan) is amended
by striking ``and'' at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(2) Elective deferrals.--Section 402A(e)(2) of the Internal
Revenue Code of 1986 (defining elective deferral) is amended to
read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in
subparagraph (A) or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2007.
Sec. 2602. Disaster relief funds from Public Law 109-234, 120 Stat.
418, 461, (June 30, 2006), chapter 5, ``National Park Service--Historic
Preservation Fund,'' for necessary expenses related to the consequences
of Hurricane Katrina and other hurricanes of the 2005 season, may be
used to reconstruct destroyed properties that at the time of
destruction were listed in the National Register of Historic Places and
are otherwise qualified to receive these funds: Provided, That the
State Historic Preservation Officer certifies that, for the community
where that destroyed property was located, that the property is iconic
to or essential to illustrating that community's historic identity,
that no other property in that community with the same associative
historic value has survived, and that sufficient historical
documentation exists to ensure an accurate reproduction.
CHAPTER 7
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Disease Control and Prevention
disease control, research and training
For an additional amount for ``Department of Health and Human
Services, Centers for Disease Control and Prevention, Disease Control,
Research and Training'', to carry out section 501 of the Federal Mine
Safety and Health Act of 1977 and section 6 of the Mine Improvement and
New Emergency Response Act of 2006, $13,000,000 for research to develop
mine safety technology, including necessary repairs and improvements to
leased laboratories: Provided, That progress reports on technology
development shall be submitted to the House and Senate Committees on
Appropriations and the Committee on Health, Education, Labor and
Pensions of the Senate and the Committee on Education and Labor of the
House of Representatives on a quarterly basis: Provided further, That
the amount provided under this heading shall remain available until
September 30, 2008.
Administration for Children and Families
low-income home energy assistance
For an additional amount for ``Low-Income Home Energy Assistance''
under section 2604(a) through (d) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8623(a) through (d)), $320,000,000.
For an additional amount for ``Low-Income Home Energy Assistance''
under section 2604(e) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8623(e)), $320,000,000.
Office of the Secretary
public health and social services emergency fund
(including transfer of funds)
For an additional amount for ``Public Health and Social Services
Emergency Fund'' to prepare for and respond to an influenza pandemic,
$820,000,000, to remain available until expended: Provided, That this
amount shall be for activities including the development and purchase
of vaccine, antivirals, necessary medical supplies, diagnostics, and
other surveillance tools: Provided further, That products purchased
with these funds may, at the discretion of the Secretary of Health and
Human Services, be deposited in the Strategic National Stockpile:
Provided further, That notwithstanding section 496(b) of the Public
Health Service Act, funds may be used for the construction or
renovation of privately owned facilities for the production of pandemic
vaccine and other biologicals, where the Secretary finds such a
contract necessary to secure sufficient supplies of such vaccines or
biologicals: Provided further, That funds appropriated herein may be
transferred to other appropriation accounts of the Department of Health
and Human Services, as determined by the Secretary to be appropriate,
to be used for the purposes specified in this sentence.
covered countermeasure process fund
For carrying out section 319F-4 of the Public Health Service Act
(42 U.S.C. 247d-6e) to compensate individuals for injuries caused by
H5N1 vaccine, in accordance with the declaration regarding avian
influenza viruses issued by the Secretary of Health and Human Services
on January 26, 2007, pursuant to section 319F-3(b) of such Act (42
U.S.C. 247d-6d(b)), $50,000,000, to remain available until expended.
DEPARTMENT OF EDUCATION
Higher Education
For an additional amount under part B of title VII of the Higher
Education Act of 1965 (``HEA'') for institutions of higher education
(as defined in section 102 of that Act) that are located in an area in
which a major disaster was declared in accordance with section 401 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act
related to hurricanes in the Gulf of Mexico in calendar year 2005,
$30,000,000: Provided, That such funds shall be available to the
Secretary of Education only for payments to help defray the expenses
(which may include lost revenue, reimbursement for expenses already
incurred, and construction) incurred by such institutions of higher
education that were forced to close, relocate or significantly curtail
their activities as a result of damage directly caused by such
hurricanes and for payments to enable such institutions to provide
grants to students who attend such institutions for academic years
beginning on or after July 1, 2006: Provided further, That such
payments shall be made in accordance with criteria established by the
Secretary and made publicly available without regard to section 437 of
the General Education Provisions Act, section 553 of title 5, United
States Code, or part B of title VII of the HEA.
Hurricane Education Recovery
For carrying out activities authorized by subpart 1 of part D of
title V of the Elementary and Secondary Education Act of 1965,
$30,000,000, to remain available until expended, for use by the States
of Louisiana, Mississippi, and Alabama primarily for recruiting,
retaining, and compensating new and current teachers, principals,
school leaders, and other educators for positions in public elementary
and secondary schools located in an area with respect to which a major
disaster was declared under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) by reason
of Hurricane Katrina or Hurricane Rita, including through such
mechanisms as paying salary premiums, performance bonuses, housing
subsidies, and relocation costs, with priority given to teachers and
school leaders who were displaced from, or lost employment in,
Louisiana, Mississippi, or Alabama by reason of Hurricane Katrina or
Hurricane Rita and who return to and are rehired by such State or local
educational agency; Provided, That funds available under this heading
to such States may also be used for 1 or more of the following
activities: (1) to build the capacity of such public elementary and
secondary schools to provide an effective education, including the
design, adaptation, and implementation of high-quality formative
assessments; (2) the establishment of partnerships with nonprofit
entities with a demonstrated track record in recruiting and retaining
outstanding teachers and other school leaders; and (3) paid release
time for teachers and principals to identify and replicate successful
practices from the fastest-improving and highest-performing schools:
Provided further, That the Secretary of Education shall allocate
amounts available under this heading among such States that submit
applications; that such allocation shall be based on the number of
public elementary and secondary schools in each State that were closed
for 19 days or more during the period beginning on August 29, 2005, and
ending on December 31, 2005, due to Hurricane Katrina or Hurricane
Rita; and that such States shall in turn allocate funds, on a
competitive basis, to local educational agencies, with priority given
first to such agencies with the highest percentages of public
elementary and secondary schools that are closed as a result of such
hurricanes as of the date of enactment of this Act and then to such
agencies with the highest percentages of public elementary and
secondary schools with a student-teacher ratio of at least 25 to 1, and
with any remaining amounts to be distributed to such agencies with
demonstrated need, as determined by the State educational agency:
Provided further, That, in the case of a State that chooses to use
amounts available under this heading for performance bonuses, not later
than 60 days after the date of enactment of this Act and after
consultation with, as applicable, local educational agencies, teachers'
unions, local principals' organizations, local parents' organizations,
local business organizations, and local charter schools organizations,
such State shall establish and implement a rating system for such
performance bonuses based on strong learning gains for students and
growth in student achievement, based on classroom observation and
feedback at least 4 times annually, conducted by multiple sources
(including principals and master teachers), and evaluated against
research-validated rubrics that use planning, instructional, and
learning environment standards to measure teaching performance:
Provided further, That the amount provided under this heading is
designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress).
Hurricane Education Recovery
programs to restart school operations
Funds made available under section 102 of the Hurricane Education
Recovery Act (title IV of division B of Public Law 109-148) may be used
by the States of Louisiana, Mississippi, Alabama, and Texas, in
addition to the uses of funds described in section 102(e) for the
following costs: (1) recruiting, retaining and compensating new and
current teachers, principals, school leaders, other school
administrators, and other educators for positions in reopening public
elementary and secondary schools impacted by Hurricane Katrina or
Hurricane Rita, including through such mechanisms as paying salary
premiums, performance bonuses, housing subsidies and relocation costs;
and (2) activities to build the capacity of reopening such public
elementary and secondary schools to provide an effective education,
including the design, adaptation, and implementation of high-quality
formative assessments; the establishment of partnerships with nonprofit
entities with a demonstrated track record in recruiting and retaining
outstanding teachers and other school leaders; and paid release time
for teachers and principals to identify and replicate successful
practices from the fastest-improving and highest-performing schools:
Provided further, That in the case of a State that chooses to use
amounts available under this heading for performance bonuses, not later
than 60 days after the date of enactment of this Act and after
consultation with, as applicable, local educational agencies, teachers'
unions, local principals' organizations, local parents' organizations,
local business organizations, and local charter schools organizations,
such State shall establish and implement a rating system that shall be
based on strong learning gains for students and growth in student
achievement, based on classroom observation and feedback at least 4
times annually, conducted by multiple sources (including principals and
master teachers), and evaluated against research-validated rubrics that
use planning, instructional, and learning environment standards to
measure teaching performance: Provided further, That the amount
provided under this heading is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2701. Section 105(b) of title IV of division B of Public Law
109-148 is amended by adding at the end the following new sentence:
``With respect to the program authorized by section 102 of this Act,
the waiver authority in subsection (a) of this section shall be
available until the end of fiscal year 2008.''
(including rescission)
Sec. 2702. (a) From unexpended balances of the amounts made
available in the 2001 Emergency Supplemental Appropriations Act for
Recovery from and Response to Terrorist Attacks on the United States
(Public Law 107-38) for the Employment Training Administration,
Training and Employment Services under the Department of Labor,
$3,589,000 are rescinded.
(b) For an additional amount for the Centers for Disease Control
and Prevention for carrying out activities under section 5011(b) of the
Emergency Supplemental Appropriations Act to Address Hurricanes in the
Gulf of Mexico and Pandemic Influenza, 2006 (Public Law 109-148),
$3,589,000.
Sec. 2703. Notwithstanding section 2002(c) of the Social Security
Act (42 U.S.C. 1397a(c)), funds made available under the heading
``Social Services Block Grant'' in division B of Public Law 109-148
shall be available for expenditure by the States through the end of
fiscal year 2008.
Sec. 2704. Elimination of Remainder of SCHIP Funding Shortfalls 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.--The Secretary shall allot to
each remaining shortfall State described in
subparagraph (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 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
redistributed to the State during fiscal year
2007 in accordance with paragraphs (1) and (2).
``(C) Appropriation; allotment authority.--For the
purpose of providing additional allotments to remaining
shortfall States under this paragraph there is
appropriated, out of any funds in the Treasury not
otherwise appropriated, such sums as are necessary for
fiscal year 2007.''.
(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
``redistributions''; and
(B) by striking ``and (3)'' and inserting ``(3),
and (4)''.
(c) General Effective Date; Applicability.--Except as otherwise
provided, the amendments made by this section take effect on the date
of enactment of this Act and apply without fiscal year limitation.
Sec. 2705. Notwithstanding any other provision of law, the
Secretary of Health and Human Services shall not, prior to the date
that is 2 years after the date of enactment of this Act, take any
action to finalize, or otherwise implement provisions--
(1) contained in the proposed rule published on January 18,
2007, on pages 2236 through 2258 of volume 72, Federal Register
(relating to parts 433, 447, and 457 of title 42, Code of
Federal Regulations) or any other rule that would affect 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 in a similar manner; or
(2) restricting payments for graduate medical education
under the Medicaid program.
(a) Medicare Critical Access Hospital Designation.--Section 405(h)
of the Medicare Prescription Drug, Improvement, and Modernization Act
of 2003 (Public Law 108-173; 117 Stat. 2269) is amended by adding at
the end the following new paragraph:
``(3) Exception.--
``(A) State of minnesota.--The amendment made by
paragraph (1) shall not apply to the certification by
the State of Minnesota on or after January 1, 2006,
under section 1820(c)(2)(B)(i)(II) of the Social
Security Act (42 U.S.C. 1395i-4(c)(2)(B)(i)(II)) of one
hospital that meets the criteria described in
subparagraph (B) and is located in Cass County,
Minnesota, as a necessary provider of health care
services to residents in the area of the hospital.
``(B) Criteria described for hospital in
minnesota.--A hospital meets the criteria described in
this subparagraph if the hospital--
``(i) has been granted an exception by the
State to an otherwise applicable statutory
restriction on hospital construction or
licensing prior to the date of enactment of
this subparagraph; and
``(ii) is located on property which the
State has approved for conveyance to a county
within the State prior to such date of
enactment.
``(C) State of mississippi.--The amendment made by
paragraph (1) shall not apply to the certification by
the State of Mississippi on or after April 1, 2007,
under section 1820(c)(2)(b)(i)(II) of the Social
Security Act (42 U.S.C. 1395i-4(c)(2)(B)(i)(II)) of one
hospital that meets the criteria described in
subparagraph (D) and is located in Kemper County,
Mississippi, as a necessary provider of health care
services to residents in the area of the hospital.
``(D) Criteria described for hospital in
mississippi.--A hospital meets the criteria described
in this subparagraph if the hospital--
``(i) meets all other criteria for
designation as a critical access hospital under
section 1820(c)(2)(b) of the Social Security
Act (42 U.S.C. 1395i-4(c)(2)(B));
``(ii) has satisfied the requirement of the
certificate of need laws and regulations of the
State of Mississippi; and
``(iii) will be constructed on property
that will be conveyed by the Kemper County
Board of Supervisors within the State of
Mississippi.''.
(b) Increase in Basic Rebate for Single Source Drugs and Innovator
Multiple Source Drugs.--Section 1927(c)(1)(B)(i) of the Social Security
Act (42 U.S.C. 1396r-8(c)(1)(B)(i)) is amended--
(1) in subclause (IV), by striking ``and'' after the
semicolon;
(2) in subclause (V)--
(A) by inserting ``and before April 1, 2007,''
after ``1995,''; and
(B) by striking the period and inserting ``; and'';
and
(3) by adding at the end the following:
``(VI) after March 31, 2007, is 20
percent.''.
Sec. 2705. (a) For grant years beginning in 2006-2007, the
Secretary of Health and Human Services may waive the requirements of,
with respect to Louisiana, Mississippi, Alabama, and Texas and any
eligible metropolitan area in Louisiana, Mississippi, Alabama, and
Texas, the following sections of the Public Health Service Act:
(1) Section 2612(e)(1) of such Act (42 U.S.C. 300ff-
21(b)(1)).
(2) Section 2617(b)(7)(E) of such Act (42 U.S.C. 300ff-
27(b)(7)(E)).
(3) Section 2617(d) of such Act (42 U.S.C. 300ff-27(d)),
except that such waiver shall apply so that the matching
requirement is reduced to $1 for each $4 of Federal funds
provided under the grant involved.
(b) If the Secretary of Health and Human Services grants a waiver
under subsection (b), the Secretary--
(1) may not prevent Louisiana, Mississippi, Alabama, and
Texas or any eligible metropolitan area in Louisiana,
Mississippi, Alabama, and Texas from receiving or utilizing, or
both, funds granted or distributed, or both, pursuant to title
XXVI of the Public Health Service Act (42 U.S.C. 300ff-11 et
seq.) because of the failure of Louisiana, Mississippi,
Alabama, and Texas or any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas to comply with the
requirements of the sections listed in paragraphs (1) through
(3) of subsection (a);
(2) may not take action due to such noncompliance; and
(3) shall assess, evaluate, and review Louisiana,
Mississippi, Alabama, and Texas or any eligible metropolitan
area's eligibility for funds under such title XXVI as if
Louisiana, Mississippi, Alabama, and Texas or such eligible
metropolitan area had fully complied with the requirements of
the sections listed in paragraphs (1) through (3) of subsection
(a).
(c) For grant years beginning in 2008, Louisiana, Mississippi,
Alabama, and Texas and any eligible metropolitan area in Louisiana,
Mississippi, Alabama, and Texas shall comply with each of the
applicable requirements under title XXVI of the Public Health Service
Act (42 U.S.C. 300ff-11 et seq.).
CHAPTER 8
LEGISLATIVE BRANCH
ARCHITECT OF THE CAPITOL
Capitol Power Plant
For an additional amount for ``Capitol Power Plant'', $25,000,000,
for emergency utility tunnel repairs and asbestos abatement, to remain
available until September 30, 2011: Provided, That the Architect of the
Capitol may not obligate any of the funds appropriated under this
heading without approval of an obligation plan by the Committees on
Appropriations of the Senate and House of Representatives.
GOVERNMENT ACCOUNTABILITY OFFICE
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'' of the
Government Accountability Office, $374,000, to remain available until
expended.
CHAPTER 9
DEPARTMENT OF DEFENSE
MILITARY CONSTRUCTION
Military Construction, Air Force Reserve
(including rescission of funds)
For an additional amount for ``Military Construction, Air Force
Reserve'', $3,096,000, to remain available until September 30, 2011:
Provided, That such funds may be obligated and expended to carry out
planning and design and military construction projects not otherwise
authorized by law.
Of the funds appropriated for ``Military Construction, Air Force
Reserve'' under Public Law 109-114, $3,096,000 are hereby rescinded.
Department of Defense Base Closure Account, 2005
For deposit into the Department of Defense Base Closure Account
2005, established by section 2906(a)(1) of the Defense Base Closure and
Realignment Act of 1990 (10 U.S.C. 2687 note), $3,136,802,000, to
remain available until expended.
DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
medical services
For an additional amount for ``Medical Services'', $454,131,000, to
remain available until expended, of which $50,000,000 shall be for the
establishment of new Level I comprehensive polytrauma centers;
$9,440,000 shall be for the establishment of polytrauma residential
transitional rehabilitation programs; $20,000,000 shall be for
additional transition caseworkers; $30,000,000 shall be for substance
abuse treatment programs; $20,000,000 for readjustment counseling;
$10,000,000 shall be for blind rehabilitation services; $100,000,000
shall be for enhancements to mental health services; $8,000,000 shall
be for polytrauma support clinic teams; $5,356,000 for additional
polytrauma points of contacts; and $201,335,000 shall be for treatment
of Operation Enduring Freedom and Operation Iraqi Freedom veterans.
medical administration
For an additional amount for ``Medical Administration'',
$250,000,000, to remain available until expended.
medical facilities
For an additional amount for ``Medical Facilities'', $595,000,000,
to remain available until expended, of which $45,000,000 shall be used
for facility and equipment upgrades at the Department of Veterans
Affairs polytrauma rehabilitation centers and the polytrauma network
sites; and $550,000,000 shall be for non-recurring maintenance as
identified in the Department of Veterans Affairs Facility Condition
Assessment report: Provided, That the amount provided under this
heading for non-recurring maintenance shall be allocated in a manner
outside of the Veterans Equitable Resource Allocation and specific to
the needs and geographic distribution of Operation Enduring Freedom and
Operation Iraqi Freedom veterans: Provided further, That within 30 days
of enactment of this Act the Secretary shall submit to the Committees
on Appropriations of both Houses of Congress an expenditure plan for
non-recurring maintenance prior to obligation.
medical and prosthetic research
For an additional amount for ``Medical and Prosthetic Research'',
$30,000,000, to remain available until expended, which shall be used
for research related to the unique medical needs of returning Operation
Enduring Freedom and Operation Iraqi Freedom veterans.
Departmental Administration
general operating expenses
For an additional amount for ``General Operating Expenses'',
$46,000,000, to remain available until expended, for the hiring and
training of new pension and compensation claims processing personnel.
information technology systems
For an additional amount for ``Information Technology Systems'',
$36,100,000, to remain available until expended, of which $20,000,000
shall be for information technology support and improvements for
processing of OIF/OEF veterans benefits claims, including making
electronic DOD medical records available for claims processing and
enabling electronic benefits applications by veterans; $1,000,000 shall
be for the digitization of benefits records; and $15,100,000 shall be
for electronic data breach and remediation and prevention.
construction, minor projects
For an additional amount for ``Construction, Minor Projects'',
$355,907,000, to remain available until expended, of which $36,000,000
shall be for construction costs associated with the establishment of
polytrauma residential transitional rehabilitation programs.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2901. (a) Notwithstanding any other provision of law, none of
the funds in this or any other Act shall be used to downsize staff or
to close, realign or phase out essential services at Walter Reed Army
Medical Center until equivalent medical facilities at the Walter Reed
National Military Medical Center at Naval Medical Center, Bethesda,
Maryland, and/or the Fort Belvoir, Virginia, Community Hospital have
been constructed and equipped, and until the Secretary of Defense has
certified in writing to the Congress that:
(1) the new facilities at Walter Reed National Military
Medical Center at Bethesda and/or the Fort Belvoir Community
Hospital are complete and fully operational, and
(2) replacement medical facilities at Walter Reed National
Military Medical Center at Bethesda have adequate capacity to
meet both the existing and projected demand for complex medical
care and services, including outpatient and medical hold
facilities, for combat veterans and other military personnel.
(b) Not later than 30 days after enactment of this Act, the
Secretary of Defense shall provide to the Committees on Appropriations
of the Senate and House of Representatives a report and proposed
timetable outlining the Department's plan to transition patients, staff
and medical services to the new facilities at Bethesda and Fort Belvoir
without compromising patient care, staffing requirements or facility
maintenance at the Walter Reed Medical Center.
(c) To ensure that the quality of care provided by the Military
Health System is not diminished during this transition, the Walter Reed
Army Medical Center shall be adequately funded, to include necessary
renovation and maintenance of existing facilities, to continue the
maximum level of inpatient and outpatient services.
Sec. 2902. Notwithstanding any other provision of law, none of the
funds in this or any other Act shall be used to reorganize or relocate
the functions of the Armed Forces Institute of Pathology (AFIP) until
the Secretary of Defense has submitted, not later than December 31,
2007, a detailed plan and timetable for the proposed reorganization and
relocation to the Committees on Appropriations and Armed Services of
the Senate and House of Representatives. The plan shall take into
consideration the recommendations of a study being prepared by the
Government Accountability Office (GAO), provided that such study is
available not later than 45 days before the date specified in this
section, on the impact of dispersing selected functions of AFIP among
several locations, and the possibility of consolidating those functions
at one location. The plan shall include an analysis of the options for
the location and operation of the Program Management Office for second
opinion consults that are consistent with the recommendations of the
Base Realignment and Closure Commission, together with the rationale
for the option selected by the Secretary.
Sec. 2903. Within existing funds appropriated to Departmental
Administration, General Operating Expenses for fiscal year 2007, and
within 30 days after enactment of this Act, the Department of Veterans
Affairs shall contract with the National Academy of Public
Administration for the purpose of conducting an independent study and
analysis of the organizational structure, management and coordination
processes, including Seamless Transition, utilized by the Department of
Veterans affairs to:
(1) provide health care to active duty and veterans of
Operation Enduring Freedom and Operation Iraqi Freedom; and
(2) provide benefits to veterans of Operation Enduring
Freedom and Operation Iraqi Freedom.
Sec. 2904. The Director of the Congressional Budget Office shall,
not later than November 15, 2007, submit to the Committees on
Appropriations of the House of Representatives and the Senate a report
projecting appropriations necessary for the Departments of Defense and
Veterans Affairs to continue providing necessary health care to
veterans of the conflicts in Iraq and Afghanistan. The projections
should span several scenarios for the duration and number of forces
deployed in Iraq and Afghanistan, and more generally, for the long-term
health care needs of deployed troops engaged in the global war on
terrorism over the next ten years.
CHAPTER 10
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
federal-aid highways
emergency relief program
(including rescission of funds)
For an additional amount for the Emergency Relief Program as
authorized under section 125 of title 23, United States Code,
$388,903,000, to remain available until expended: Provided, That of the
unobligated balances of funds apportioned to each State under chapter 1
of title 23, United States Code, $388,903,000 are rescinded: Provided
further, That such rescission shall not apply to the funds distributed
in accordance with sections 130(f) and 104(b)(5) of title 23, United
States Code; sections 133(d)(1) and 163 of such title, as in effect on
the day before the date of enactment of Public Law 109-59; and the
first sentence of section 133(d)(3)(A) of such title: Provided further,
That section 4103 of title III of this Act shall not apply to the first
proviso under this paragraph.
Federal Transit Administration
formula grants
For an additional amount to be allocated by the Secretary to
recipients of assistance under chapter 53 of title 49, United States
Code, directly affected by Hurricanes Katrina and Rita, $75,000,000,
for the operating and capital costs of transit services, to remain
available until expended: Provided, That the Federal share for any
project funded from this amount shall be 100 percent.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Inspector General
For an additional amount for the Office of Inspector General, for
the necessary costs related to the consequences of Hurricanes Katrina
and Rita, $5,000,000, to remain available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3001. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by adding after the third proviso: ``:
Provided further, That notwithstanding the previous proviso, except for
applying the 2007 Annual Adjustment Factor and making any other
specified adjustments, public housing agencies that are eligible for
assistance under section 901 in Public Law 109-148 (119 Stat. 2781)
shall receive funding for calendar year 2007 based on the amount such
public housing agencies were eligible to receive in calendar year
2006''.
TITLE III
OTHER MATTERS
CHAPTER 1
DEPARTMENT OF AGRICULTURE
Farm Service Agency
salaries and expenses
For an additional amount for ``Salaries and Expenses'' of the Farm
Service Agency, $75,000,000, to remain available until expended:
Provided, That this amount shall only be available for the
modernization and repair of the computer systems used by the Farm
Service Agency (including all software, hardware, and personnel
required for modernization and repair): Provided further, That of this
amount $27,000,000 shall be made available 60 days after the date on
which the Farm Service Agency submits to the Committee on
Appropriations of the Senate, the Committee on Appropriations of the
House of Representatives, and the Government Accountability Office a
spending plan for the funds.
GENERAL PROVISIONS--THIS CHAPTER
(rescission)
Sec. 3101. Of the unobligated balances of funds made available
pursuant to section 298(a) of the Trade Act of 1974 (19 U.S.C.
2401G(a)), $75,000,000 are rescinded.
Sec. 3102. (a) Section 1237A(f) of the Food Security Act of 1985
(16 U.S.C. 3837a(f)) is amended in the first sentence by striking
``fair market value of the land less the fair market value of such land
encumbered by the easement'' and inserting ``fair market value of the
land as determined in accordance with the method of valuation used by
the Secretary as of January 1, 2003''.
(b) Section 1238I(c)(1) of the Food Security Act of 1985 (16 U.S.C.
3838i(c)(1)) is amended by inserting at the end the following:
``(C) Valuation.--The Secretary shall determine
fair market value under this paragraph in accordance
with the method of valuation used by the Secretary as
of January 1, 2003.''.
Sec. 3103. Subsection (b)(1) of section 313A of the Rural
Electrification Act shall not apply in the case of a cooperative lender
that has previously received a guarantee under section 313A and such
additional guarantees shall not exceed the amount provided for in
Public Law 110-5.
Sec. 3104. Spinach. No funds made available under this Act shall be
used to make payments to growers and first handlers, as defined by the
Secretary of Health and Human Services, of fresh spinach that were
unable to market spinach crops as a result of the Food and Drug
Administration Public Health Advisory issued on September 14, 2006.
CHAPTER 2
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3201. Section 20314 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by striking ``Resources.'' and inserting
in lieu thereof: ``Resources: Provided, That $22,762,000 of the amount
provided be for geothermal research and development activities:
Provided further, That $229,500,000 of the amount provided shall be
used for the weatherization assistance program of the Department of
Energy.''.
Sec. 3202. Hereafter, federal employees at the National Energy
Technology Laboratory shall be classified as inherently governmental
for the purpose of the Federal Activities Inventory Reform Act of 1998
(31 U.S.C. 501 note).
Sec. 3203. Prohibition on Certain Uses of Funds by BPA. None of the
funds made available under this or any other Act shall be used during
fiscal year 2007 to make, or plan or prepare to make, any payment on
bonds issued by the Administrator of the Bonneville Power
Administration (referred in this section as the ``Administrator'') or
for an appropriated Federal Columbia River Power System investment, if
the payment is both--
(1) greater, during any fiscal year, than the payments
calculated in the rate hearing of the Administrator to be made
during that fiscal year using the repayment method used to
establish the rates of the Administrator as in effect on
October 1, 2006; and
(2) based or conditioned on the actual or expected net
secondary power sales receipts of the Administrator.
CHAPTER 3
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3301. The structure of any of the offices or components within
the Office of National Drug Control Policy shall remain as they were on
October 1, 2006. None of the funds appropriated or otherwise made
available in the Continuing Appropriations Resolution, 2007 (Public Law
110-5) may be used to implement a reorganization of offices within the
Office of National Drug Control Policy without the explicit approval of
the Committees on Appropriations of the House of Representatives and
the Senate.
Sec. 3302. Funds made available in section 21075 of the Continuing
Appropriations Resolution, 2007 (Public Law 110-5) shall be made
available to a 501(c)(3) entity: (1) with a wide anti-drug coalition
network and membership base, and one with a demonstrated track record
and specific expertise in providing technical assistance, training,
evaluation, research, and capacity building to community anti-drug
coalitions; (2) with authorization from Congress, both prior to fiscal
year 2007, and in fiscal years 2008 through 2012, to perform the duties
described in subsection (1) of this section; and (3) that has
previously received funding from Congress, including through a
competitive process as well as direct funding, for providing the duties
described in subsection (1) of this section: Provided, That funds
appropriated in section 21075 shall be obligated within sixty days
after enactment of this Act.
Sec. 3303. Funds made available under section 613 of Public Law
109-108 (119 Stat. 2338) for Nevada's Commission on Economic
Development shall be made available to the Nevada Center for
Entrepreneurship and Technology (CET).
Sec. 3304. From the amount provided by section 21067 of the
Continuing Appropriations Resolution, 2007 (Public Law 110-5), the
National Archives and Records Administration may obligate monies
necessary to carry out the activities of the Public Interest
Declassification Board.
Sec. 3305. None of the funds appropriated or otherwise made
available in section 21063 of the Continuing Appropriations Resolution,
2007 (Public Law 110-5) for the ``General Services Administration, Real
Property Activities, Federal Buildings Fund'', may be obligated for
design, construction, or acquisition until the House and Senate
Committees on Appropriations approve a revised detailed plan, by
project, on the use of such funds: Provided, That the new plan shall
include funding for completion of courthouse construction projects
which received funding in fiscal year 2006 above a level of $5,000,000:
Provided further, That such plan shall be provided by the Administrator
of the General Services Administration to the House of Representatives
and the Senate Committees on Appropriations within seven days of
enactment.
Sec. 3306. Notwithstanding the notice requirement of the
Transportation, Treasury, Housing and Urban Development, the Judiciary,
the District of Columbia, and Independent Agencies Appropriations Act,
2006, 119 Stat. 2509 (Public Law 109-115), as continued in section 104
of the Continuing Appropriations Resolution, 2007 (Public Law 110-5),
the District of Columbia Courts may reallocate not more than $1,000,000
of the funds provided for fiscal year 2007 under the Federal Payment to
the District of Columbia Courts for facilities among the items and
entities funded under that heading for operations.
Sec. 3307. (a) Not later than 90 days after the date of enactment
of this Act, the Secretary of the Treasury, in coordination with the
Securities and Exchange Commission and in consultation with the
Departments of State and Energy, shall prepare and submit to the Senate
Committee on Appropriations, the House of Representatives Committee on
Appropriations, the Senate Foreign Relations Committee, and the House
Foreign Affairs Committee an unclassified report, suitable to be made
public, that contains the names of (1) all companies trading in
securities that are registered under section 12 of the Securities
Exchange Act of 1934 (15 U.S.C. 781) which either directly or through a
parent or subsidiary company, including partly-owned subsidiaries,
conduct business operations in Sudan relating to natural resource
extraction, including oil-related activities and mining of minerals;
and (2) the names of all other companies, which either directly or
through a parent or subsidiary company, including partly-owned
subsidiaries, conduct business operations in Sudan relating to natural
resource extraction, including oil-related activities and mining of
minerals. The reporting provision shall not apply to companies
operating under licenses from the Office of Foreign Assets Control or
otherwise expressly exempted under United States law from having to
obtain such licenses in order to operate in Sudan.
(b) Not later than 20 days after enactment, the Secretary of the
Treasury shall inform the aforementioned committees of Congress of any
statutory or other legal impediments to the successful completion of
this report.
(c) Not later than 45 days following the submission to Congress of
the list of companies conducting business operations in Sudan relating
to natural resource extraction required above, the General Services
Administration shall determine whether the United States Government has
an active contract for the procurement of goods or services with any of
the identified companies, and provide notification to the appropriate
committees of Congress of the companies, nature of the contract, and
dollar amounts involved.
(including rescission)
Sec. 3308. (a) Of the funds provided for the General Services
Administration, ``Office of Inspector General'' in section 21061 of the
Continuing Appropriations Resolution, 2007 (division B of Public Law
109-289, as amended by Public Law 110-5), $8,000,000 are rescinded.
(b) For an additional amount for the General Services
Administration, ``Office of Inspector General'', $8,000,000, to remain
available until September 30, 2008.
Sec. 3309. Section 21073 of the Continuing Appropriations
Resolution, 2007 (Public Law 110-5) is amended by adding a new
subsection (j) as follows:
``(j) Notwithstanding section 101, any appropriation or funds made
available to the District of Columbia pursuant to this division for
`Federal Payment for Foster Care Improvement in the District of
Columbia' shall be available in accordance with an expenditure plan
submitted by the Mayor of the District of Columbia not later than 60
days after the enactment of this section which details the activities
to be carried out with such Federal Payment.''.
Sec. 3310. Pursuant to section 140 of Public Law 97-92, justices
and judges of the United States are authorized during fiscal year 2007
to receive a salary adjustment in accordance with section 461 of title
28, United States Code.
CHAPTER 4
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3401. Any unobligated balances remaining from prior
appropriations for United States Coast Guard, ``Retired Pay'' shall
remain available until expended in the account and for the purposes for
which the appropriations were provided, including the payment of
obligations otherwise chargeable to lapsed or current appropriations
for this purpose.
Sec. 3402. Integrated Deepwater System. (a) Competition for
Acquisition and Modification of Assets.--
(1) In general.--The Commandant of the Coast Guard shall
utilize full and open competition for any contract entered into
after the date of enactment of this Act that provides for the
acquisition or modification of assets under, or in support of,
the Integrated Deepwater System Program of the Coast Guard.
(2) Exceptions.--Paragraph (1) shall not apply to the
following:
(A) The acquisition or modification of the
following asset classes for which assets of the class
and related systems and components under the Integrated
Deepwater System are under a contract for production:
(i) National Security Cutter;
(ii) Maritime Patrol Aircraft;
(iii) Deepwater Command, Control,
Communications, Computer, Intelligence,
Surveillance, and Reconnaissance (C4ISR)
System; and
(iv) HC-130J Fleet Introduction.
(B) The modification of any legacy asset class
under the Integrated Deepwater System Program being
performed by a Coast Guard entity.
(b) Chair of Product and Oversight Teams.--The Commandant of the
Coast Guard shall assign an appropriate officer or employee of the
Coast Guard to act as chair of each of the following:
(1) Each integrated product team under the Integrated
Deepwater System Program.
(2) Each higher-level team assigned to the oversight of a
product team referred to in paragraph (1).
(c) Life-cycle Cost Estimate.--The Commandant of the Coast Guard
may not enter into a contract for lead asset production under the
Integrated Deepwater System Program until the Commandant obtains an
independent estimate of life-cycle costs of the asset concerned.
(d) Review of Acquisitions and Major Design Changes.--
(1) In general.--With the exception of assets covered under
(a)(2) of this section, the Commandant of the Coast Guard may
not carry out an action described in paragraph (2) unless an
independent third party with no financial interest in the
development, construction, or modification of any component of
the Integrated Deepwater System Program, selected by the
Commandant for purposes of the subsection, determines that such
action is advisable.
(2) Covered Actions.--The actions described in the
paragraph are as follows:
(A) The acquisition or modification of an asset
under the Integrated Deepwater System Program.
(B) The implementation of a major design change for
an asset under the Integrated Deepwater System Program.
(e) Linking of Award Fees to Successful Acquisition Outcomes.--The
Commandant of the Coast Guard shall require that all contracts under
the Integrated Deepwater System Program that provide award fees link
such fees to successful acquisition outcomes (which shall be defined in
terms of cost, schedule, and performance).
(f) Contractual Agreements.--
(1) In general.--The Commandant of the Coast Guard may not
award or issue any contract, task or delivery order, letter
contract modification thereof, or other similar contract, for
the acquisition or modification of an asset under the
Integrated Deepwater System Program unless the Coast Guard and
the contractor concerned have formally agreed to all terms and
conditions.
(2) Exception.--A contract, task or delivery order, letter
contract, modification thereof, or other similar contract
described in paragraph (1) may be awarded or issued if the head
of contracting activity of the Coast Guard determines that a
compelling need exists for the award or issue of such
instrument.
(g) Designation of Technical Authority.--The Commandant of the
Coast Guard shall designate the Assistant Commandant of the Coast Guard
for Engineering and Logistics as the technical authority for all
engineering, design, and logistics decisions pertaining to the
Integrated Deepwater System Program.
(h) Report on Personnel Required for Acquisition Management.--Not
later than 30 days after the date of the enactment of this Act, the
Commandant of the Coast Guard shall submit to the Committees on
Appropriations of the Senate and the House of Representatives; the
Committee on Commerce, Science and Transportation of the Senate; and
the Committee on Transportation and Infrastructure of the House of
Representatives a report on the resources (including training, staff,
and expertise) required by the Coast Guard to provide appropriate
management and oversight of the Integrated Deepwater System Program.
(i) Comptroller General Report on Progress.--Not later than 60 days
after the date of enactment of this Act, the Comptroller General of the
United States shall submit to the Committees on Appropriations of the
Senate and the House of Representatives; the Committee on Commerce,
Science and Transportation of the Senate; and the Committee on
Transportation and Infrastructure of the House of Representatives a
report describing and assessing the progress of the Coast Guard in
complying with the requirements of this section.
Sec. 3403. None of the funds provided in this Act or any other Act
may be used to alter or reduce operations within the Civil Engineering
Program of the Coast Guard nationwide, including the civil engineering
units, facilities, design and construction centers, maintenance and
logistics command centers, the Coast Guard Academy and the Coast Guard
Research and Development Center, except as specifically authorized by a
statute enacted after the date of enactment of this Act.
CHAPTER 5
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3501. Section 20515 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by inserting before the period: ``; and of
which, not to exceed $143,628,000 shall be available for contract
support costs under the terms and conditions contained in Public Law
109-54''.
Sec. 3502. Section 20512 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by inserting after the first dollar
amount: ``, of which not to exceed $7,300,000 shall be transferred to
the `Indian Health Facilities' account; the amount in the second
proviso shall be $18,000,000; the amount in the third proviso shall be
$525,099,000; the amount in the ninth proviso shall be $269,730,000;
and the $15,000,000 allocation of funding under the eleventh proviso
shall not be required''.
Sec. 3503. Section 20501 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by inserting after $55,663,000: ``of which
$13,000,000 shall be for Save America's Treasures''.
Sec. 3504. Of the funds made available to the United States Fish
and Wildlife Service for fiscal year 2007 under the heading ``Land
Acquisition'', not to exceed $1,980,000 may be used for land
conservation partnerships authorized by the Highlands Conservation Act
of 2004.
Sec. 3505. The Administrator of the Environmental Protection Agency
shall grant to the Water Environment Research Foundation (WERF) such
sums as were directed in fiscal year 2005 and fiscal year 2006 for the
On-Farm Assessment and Environmental Review program: Provided, That not
less than 95 percent of funds made available shall be used by WERF to
award competitively a contract to perform the program's environmental
assessments: Provided further, That WERF shall not retain more than 5
percent of such sums for administrative expenses.
Sec. 3506. In providing any grants for small and rural community
technical and compliance assistance under the Fiscal Year 2007
Operating Plan of the Environmental Protection Agency, the
Administrator of the Environmental Protection Agency shall give
priority to small systems and qualified (as determined by the
Administrator) organizations that have the most need (or a majority of
need) from small communities in each State.
CHAPTER 6
DEPARTMENT OF HEALTH AND HUMAN SERVICES
National Institutes of Health
national institute of allergy and infectious diseases
(transfer of funds)
Of the amount provided by the Continuing Appropriations Resolution,
2007 for ``National Institute of Allergy and Infectious Diseases'',
$49,500,000 shall be transferred to ``Public Health and Social Services
Emergency Fund'' to carry out activities relating to advanced research
and development as provided by section 319L of the Public Health
Service Act.
GENERAL PROVISIONS--THIS CHAPTER
(transfer of funds)
Sec. 3601. Section 20602 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by inserting the following after
``$5,000,000'': ``(together with an additional $7,000,000 which shall
be transferred by the Pension Benefit Guaranty Corporation as an
authorized administrative cost)''.
Sec. 3602. Section 20625(b)(1) of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by--
(1) striking ``$7,172,994,000'' and inserting
``$7,176,431,000'';
(2) amending subparagraph (A) to read as follows:
``(A) $5,454,824,000 shall be for basic grants
under section 1124 of the Elementary and Secondary
Education Act of 1965 (ESEA), of which up to $3,437,000
shall be available to the Secretary of Education on
October 1, 2006, to obtain annually updated
educational-agency-level census poverty data from the
Bureau of the Census;''; and
(3) amending subparagraph (C) to read as follows:
``(C) not to exceed $2,352,000 may be available for
section 1608 of the ESEA and for a clearinghouse on
comprehensive school reform under part D of title V of
the ESEA;''.
Sec. 3603. (a) From the amounts available for Department of
Education, Safe Schools and Citizenship Education as provided by the
Continuing Appropriations Resolution, 2007, $321,500,000 shall be
available for Safe and Drug-Free Schools State Grants and $247,335,000
shall be available for Safe and Drug-Free Schools National Programs.
(b) Of the amount available for Safe and Drug-Free National
Programs, not less than $25,000,000 shall be for competitive grants to
local educational agencies to address youth violence and related
issues.
(c) The competition under subsection (b) shall be limited to local
educational agencies that operate schools currently identified as
persistently dangerous under section 9532 of the Elementary and
Secondary Education Act of 1965.
Sec. 3604. The provision in the first proviso under the heading
``Rehabilitation Services and Disability Research'' in the Department
of Education Appropriations Act, 2006, relating to alternative
financing programs under section 4(b)(2)(D) of the Assistive Technology
Act of 1998 shall not apply to funds appropriated by the Continuing
Appropriations Resolution, 2007.
(transfer of funds)
Sec. 3605. Notwithstanding sections 20639 and 20640 of the
Continuing Appropriations Resolution, 2007, as amended by section 2 of
the Revised Continuing Appropriations Resolution, 2007 (Public Law 110-
5), the Chief Executive Officer of the Corporation for National and
Community Service may transfer an amount of not more than $1,360,000
from the account under the heading ``National and Community Service
Programs, Operating Expenses'' under the heading ``Corporation for
National and Community Service'', to the account under the heading
``Salaries and Expenses'' under the heading ``Corporation for National
and Community Service''.
Sec. 3606. Section 1310.12(a) of title 45 of the Code of Federal
Regulations (October 1, 2004) shall be effective 30 days after
enactment of this Act except that any vehicles in use to transport Head
Start children as of January 1, 2007, shall not be subject to a
requirement under that part regarding rear emergency exit doors for two
years after the date of enactment.
The Secretary of Health and Human Services shall revise the
allowable alternate vehicle standards described in that part 1310 (or
any corresponding similar regulation or ruling) to exempt from Federal
seat spacing requirements and supporting seating requirements related
to compartmentalization any vehicle used to transport children for a
Head Start program if the vehicle meets federal motor vehicle safety
standards for seating systems, occupant crash protection, seat belt
assemblies, and child restraint anchorage systems consistent with that
part 1310 (or any corresponding similar regulation or ruling). Such
revision shall be made in a manner consistent with the findings of the
National Highway Traffic Safety Administration, pursuant to its study
on occupant protection on Head Start transit vehicles, related to the
Government Accountability Office report GAO-06-767R.
(including rescission)
Sec. 3607. (a) From the amounts made available by the Continuing
Appropriations Resolution, 2007 (Public Law 109-289, as amended by the
Revised Continuing Appropriations Resolution, 2007 (Public Law 110-5))
for the Office of the Secretary, General Departmental Management under
the Department of Health and Human Services, $1,000,000 are rescinded.
(b) For the activities carried out by the Secretary of Education
under section 3(a) of Public Law 108-406 (42 U.S.C. 15001 note),
$1,000,000.
(including rescission)
Sec. 3608. (a) From the amounts made available by the Continuing
Appropriations Resolution, 2007 for ``Department of Education, Student
Aid Administration'', $2,000,000 are rescinded.
(b) For an additional amount for ``Department of Education, Higher
Education'' under part B of title VII of the Higher Education Act of
1965 which shall be used to make a grant to the University of Vermont
for the Educational Excellence Program, $2,000,000.
Sec. 3609. Section 1820 of the Social Security Act (42 U.S.C.
1395i-4) is amended--
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Delta Health Initiative.--
``(1) In general.--The Secretary is authorized to award a
grant to the Delta Health Alliance, a nonprofit alliance of
academic institutions in the Mississippi Delta region, to
solicit and fund proposals from local governments, hospitals,
health care clinics, academic institutions, and rural public
health-related entities and organizations for research
development, educational programs, health care services, job
training, planning, construction, and the equipment of public
health-related facilities in the Mississippi Delta region.
``(2) Federal interest in property.--With respect to funds
used under this subsection for construction or alteration of
property, the Federal interest in the property shall last for a
period of 1 year following completion or until the Federal
Government is compensated for its proportionate interest in the
property if the property use changes or the property is
transferred or sold, whichever time period is less. At the
conclusion of such period, the Notice of Federal Interest in
such property shall be removed.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary to
carry out this subsection in fiscal year 2007 and in each of
the five succeeding fiscal years.''.
Sec. 3610. Not withstanding any other provision of this Act,
section 3608(b) of this Act shall not take effect.
CHAPTER 7
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3701. Section 2(c) of the Legislative Branch Appropriations
Act, 1993 (2 U.S.C. 121d(c)) is amended by adding at the end the
following:
``(3) The Secretary of the Senate may transfer from the
fund to the Senate Employee Child Care Center proceeds from the
sale of holiday ornaments by the Senate Gift Shop for the
purpose of funding necessary activities and expenses of the
Center, including scholarships, educational supplies, and
equipment.''.
(including rescission)
Sec. 3702. (a) Of the funds provided for the ``Capitol Guide
Service and Special Services Office'' in section 20703(a) of the
Continuing Appropriations Resolution, 2007 (as added by section 2 of
the Revised Continuing Appropriations Resolution, 2007 (Public Law 110-
5)), $3,500,000 are rescinded.
(b) For an additional amount for ``Capitol Guide Service and
Special Services Office'', $3,500,000, to remain available until
September 30, 2008.
CHAPTER 8
GENERAL PROVISION--THIS CHAPTER
Sec. 3801. Notwithstanding any other provision of law,
appropriations made by Public Law 110-5, or any other Act, which the
Secretary of Veterans Affairs contributes to the Department of Defense/
Department of Veterans Affairs Health Care Sharing Incentive Fund under
the authority of section 8111(d) of title 38, United States Code, shall
remain available until expended for any purpose authorized by section
8111 of title 38, United States Code.
CHAPTER 9
GENERAL PROVISIONS--THIS CHAPTER
consultation requirement
Sec. 3901. Of the funds provided in the Revised Continuing
Appropriations Resolution, 2007 (Public Law 110-5) for the United
States-China Economic and Security Review Commission, $1,000,000 shall
be available for obligation only in accordance with a spending plan
submitted to and approved by the Committees on Appropriations which
addresses the recommendations of the Government Accountability Office's
audit of the Commission.
technical amendment
Sec. 3902. (a) Notwithstanding any other provision of law,
subsection (c) under the heading ``Assistance for the Independent
States of the Former Soviet Union'' in Public Law 109-102, shall not
apply to funds appropriated by the Continuing Appropriations
Resolution, 2007 (Public Law 109-289, division B) as amended by Public
Laws 109-369, 109-383, and 110-5.
(b) Section 534(k) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2006 (Public Law 109-102) is
amended, in the second proviso, by inserting after ``subsection (b) of
that section'' the following: ``and the requirement that a majority of
the members of the board of directors be United States citizens
provided in subsection (d)(3)(B) of that section''.
(c) Subject to section 101(c)(2) of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5), the amount of funds appropriated for ``Foreign
Military Financing Program'' pursuant to such Resolution shall be
construed to be the total of the amount appropriated for such program
by section 20401 of that Resolution and the amount made available for
such program by section 591 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2006 (Public Law
109-102) which is made applicable to the fiscal year 2007 by the
provisions of such Resolution.
CHAPTER 10
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Federal Housing Enterprise Oversight
salaries and expenses
(including transfer of funds)
For an additional amount to carry out the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992, $4,800,000, to
remain available until expended, to be derived from the Federal Housing
Enterprises Oversight Fund and to be subject to the same terms and
conditions pertaining to funds provided under this heading in Public
Law 109-115: Provided, That not to exceed the total amount provided for
these activities for fiscal year 2007 shall be available from the
general fund of the Treasury to the extent necessary to incur
obligations and make expenditures pending the receipt of collections to
the Fund: Provided further, That the general fund amount shall be
reduced as collections are received during the fiscal year so as to
result in a final appropriation from the general fund estimated at not
more than $0.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 4001. Hereafter, funds limited or appropriated for the
Department of Transportation may be obligated or expended to grant
authority to a Mexican motor carrier to operate beyond United States
municipalities and commercial zones on the United States-Mexico border
only to the extent that--
(1) granting such authority is first tested as part of a
pilot program;
(2) such pilot program complies with the requirements of
section 350 of Public Law 107-87 and the requirements of
section 31315(c) of title 49, United States Code, related to
pilot programs; and
(3) simultaneous and comparable authority to operate within
Mexico is made available to motor carriers domiciled in the
United States.
Sec. 4002. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as amended by
Public Law 110-5) is amended by adding after the second proviso: ``:
Provided further, That paragraph (2) under such heading in Public Law
109-115 (119 Stat. 2441) shall be funded at $149,300,000, but
additional section 8 tenant protection rental assistance costs may be
funded in 2007 by using unobligated balances, notwithstanding the
purposes for which such amounts were appropriated, including recaptures
and carryover, remaining from funds appropriated to the Department of
Housing and Urban Development under this heading, the heading ``Annual
Contributions for Assisted Housing'', the heading ``Housing Certificate
Fund'', and the heading ``Project-Based Rental Assistance'' for fiscal
year 2006 and prior fiscal years: Provided further, That paragraph (3)
under such heading in Public Law 109-115 (119 Stat. 2441) shall be
funded at $47,500,000: Provided further, That paragraph (4) under such
heading in Public Law 109-115 (119 Stat. 2441) shall be funded at
$5,900,000: Provided further, That paragraph (5) under such heading in
Public Law 109-115 (119 Stat. 2441) shall be funded at $1,281,100,000,
of which $1,251,100,000 shall be allocated for the calendar year 2007
funding cycle on a pro rata basis to public housing agencies based on
the amount public housing agencies were eligible to receive in calendar
year 2006, and of which up to $30,000,000 shall be available to the
Secretary to allocate to public housing agencies that need additional
funds to administer their section 8 programs, with up to $20,000,000 to
be for fees associated with section 8 tenant protection rental
assistance''.
Sec. 4003. The dates for subsidy reductions and demonstrations for
discontinuance of reductions in operating subsidy under the new
operating fund formula, pursuant to HUD regulations at 24 CFR 990.230,
shall be moved forward so that the first demonstration date for asset
management compliance shall be September 1, 2007, and reductions in
subsidy for calendar year 2007 shall be limited to the 5 percent amount
referred to in such regulations. Any public housing agency that has
filed information to demonstrate compliance on or prior to April 15,
2007 shall be permitted to re-file the same or different information to
demonstrate such compliance on or before September 1, 2007.
CHAPTER 11
GENERAL PROVISIONS--THIS ACT
availability of funds
Sec. 4101. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
emergency designation for title i
Sec. 4102. Amounts provided in title I of this Act are designated
as emergency requirements pursuant to section 402 of H. Con. Res. 95
(109th Congress), the concurrent resolution on the budget for fiscal
year 2006.
emergency designation for title ii
Sec. 4103. Amounts provided in title II of this Act are designated
as emergency requirements pursuant to section 402 of H. Con. Res. 95
(109th Congress), the concurrent resolution on the budget for fiscal
year 2006.
TITLE IV--EMERGENCY FARM RELIEF
SEC. 401. SHORT TITLE.
This title may be cited as the ``Emergency Farm Relief Act of
2007''.
SEC. 402. DEFINITIONS.
In this title:
(1) Additional coverage.--The term ``additional coverage''
has the meaning given the term in section 502(b)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1502(b)(1)).
(2) Applicable crop.--The term ``applicable crop'' means 1
or more crops planted, or prevented from being planted, during,
as elected by the producers on a farm, 1 of--
(A) the 2005 crop year;
(B) the 2006 crop year; or
(C) that part of the 2007 crop year that takes
place before the end of the applicable period.
(3) Applicable period.--The term ``applicable period''
means the period beginning on January 1, 2005 and ending on
February 28, 2007.
(4) Disaster county.--The term ``disaster county'' means--
(A) a county included in the geographic area
covered by a natural disaster declaration; and
(B) each county contiguous to a county described in
subparagraph (A).
(5) Hurricane-affected county.--The term ``hurricane-
affected county'' means--
(A) a county included in the geographic area
covered by a natural disaster declaration related to
Hurricane Katrina, Hurricane Rita, Hurricane Wilma, or
a related condition; and
(B) each county contiguous to a county described in
subparagraph (A).
(6) Insurable commodity.--The term ``insurable commodity''
means an agricultural commodity (excluding livestock) for which
the producers on a farm are eligible to obtain a policy or plan
of insurance under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
(7) Livestock.--The term ``livestock'' includes--
(A) cattle (including dairy cattle);
(B) bison;
(C) poultry;
(D) sheep;
(E) swine; and
(F) other livestock, as determined by the
Secretary.
(8) Natural disaster declaration.--The term ``natural
disaster declaration'' means a natural disaster declared by the
Secretary during the applicable period under section 321(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)).
(9) Noninsurable commodity.--The term ``noninsurable
commodity'' means a crop for which the producers on a farm are
eligible to obtain assistance under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
Subtitle A--Agricultural Production Losses
SEC. 411. CROP DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use such sums as are necessary
of funds of the Commodity Credit Corporation to make emergency
financial assistance authorized under this section available to
producers on a farm that have incurred qualifying losses described in
subsection (c).
(b) Administration.--
(1) In general.--Except as provided in paragraph (2), the
Secretary shall make assistance available under this section in
the same manner as provided under section 815 of the
Agriculture, Rural Development, Food and Drug Administration
and Related Agencies Appropriations Act, 2001 (Public Law 106-
387; 114 Stat. 1549A-55), including using the same loss
thresholds for quantity and economic losses as were used in
administering that section, except that the payment rate shall
be 55 percent of the established price, instead of 65 percent.
(2) Noninsured producers.--For producers on a farm that
were eligible to acquire crop insurance for the applicable
production loss and failed to do so or failed to submit an
application for the noninsured assistance program for the loss,
the Secretary shall make assistance in accordance with
paragraph (1), except that the payment rate shall be 20 percent
of the established price, instead of 50 percent.
(c) Qualifying Losses.--Assistance under this section shall be made
available to producers on farms, other than producers of sugar beets,
that incurred qualifying quantity or quality losses for the applicable
crop due to damaging weather or any related condition (including losses
due to crop diseases, insects, and delayed harvest), as determined by
the Secretary.
(d) Quality Losses.--
(1) In general.--In addition to any payment received under
subsection (b), the Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to make
payments to producers on a farm described in subsection (a)
that incurred a quality loss for the applicable crop of a
commodity in an amount equal to the product obtained by
multiplying--
(A) the payment quantity determined under paragraph
(2);
(B)(i) in the case of an insurable commodity, the
coverage level elected by the insured under the policy
or plan of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.); or
(ii) in the case of a noninsurable commodity, the
applicable coverage level for the payment quantity
determined under paragraph (2); by
(C) 55 percent of the payment rate determined under
paragraph (3).
(2) Payment quantity.--For the purpose of paragraph (1)(A),
the payment quantity for quality losses for a crop of a
commodity on a farm shall equal the lesser of--
(A) the actual production of the crop affected by a
quality loss of the commodity on the farm; or
(B)(i) in the case of an insurable commodity, the
actual production history for the commodity by the
producers on the farm under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.); or
(ii) in the case of a noninsurable commodity, the
established yield for the crop for the producers on the
farm under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333).
(3) Payment rate.--
(A) In general.--For the purpose of paragraph
(1)(B), the payment rate for quality losses for a crop
of a commodity on a farm shall be equal to the
difference between (as determined by the applicable
State committee of the Farm Service Agency)--
(i) the per unit market value that the
units of the crop affected by the quality loss
would have had if the crop had not suffered a
quality loss; and
(ii) the per unit market value of the units
of the crop affected by the quality loss.
(B) Factors.--In determining the payment rate for
quality losses for a crop of a commodity on a farm, the
applicable State committee of the Farm Service Agency
shall take into account--
(i) the average local market quality
discounts that purchasers applied to the
commodity during the first 2 months following
the normal harvest period for the commodity;
(ii) the loan rate and repayment rate
established for the commodity under the
marketing loan program established for the
commodity under subtitle B of title I of the
Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7931 et seq.);
(iii) the market value of the commodity if
sold into a secondary market; and
(iv) other factors determined appropriate
by the committee.
(4) Eligibility.--
(A) In general.--For producers on a farm to be
eligible to obtain a payment for a quality loss for a
crop under this subsection--
(i) the amount obtained by multiplying the
per unit loss determined under paragraph (1) by
the number of units affected by the quality
loss shall be reduced by the amount of any
indemnification received by the producers on
the farm for quality loss adjustment for the
commodity under a policy or plan of insurance
under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.); and
(ii) the remainder shall be at least 25
percent of the value that all affected
production of the crop would have had if the
crop had not suffered a quality loss.
(B) Ineligibility.--If the amount of a quality loss
payment for a commodity for the producers on a farm
determined under this paragraph is equal to or less
than zero, the producers on the farm shall be
ineligible for assistance for the commodity under this
subsection.
(5) Eligible production.--The Secretary shall carry out
this subsection in a fair and equitable manner for all eligible
production, including the production of fruits and vegetables,
other specialty crops, and field crops.
(e) Election of Crop Year.--If a producer incurred qualifying crop
losses in more than 1 of the crop years during the applicable period,
the producers on a farm shall elect to receive assistance under this
section for losses incurred in only 1 of the crop years.
(f) Payment Limitation.--
(1) Limitation.--Assistance provided under this section to
the producers on a farm for losses to a crop, together with the
amounts specified in paragraph (2) applicable to the same crop,
may not exceed 95 percent of what the value of the crop would
have been in the absence of the losses, as estimated by the
Secretary.
(2) Other payments.--In applying the limitation in
paragraph (1), the Secretary shall include the following:
(A) Any crop insurance payment made under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or
payment under section 196 of the Federal Agricultural
Improvement and Reform Act of 1996 (7 U.S.C. 7333) that
the producers on the farm receive for losses to the
same crop.
(B) The value of the crop that was not lost (if
any), as estimated by the Secretary.
(g) Timing.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make payments to producers on a farm for a crop under
this section not later than 60 days after the date the
producers on the farm submit to the Secretary a completed
application for the payments.
(2) Interest.--If the Secretary does not make payments to
the producers on a farm by the date described in paragraph (1),
the Secretary shall pay to the producers on a farm interest on
the payments at a rate equal to the current (as of the sign-up
deadline established by the Secretary) market yield on
outstanding, marketable obligations of the United States with
maturities of 30 years.
SEC. 412. DAIRY ASSISTANCE.
The Secretary shall use $95,000,000 of funds of the Commodity
Credit Corporation to make payments to dairy producers for dairy
production losses in disaster counties.
SEC. 413. 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. 414. LIVESTOCK ASSISTANCE.
(a) Livestock Compensation Program.--
(1) Use of commodity credit corporation funds.--Effective
beginning on the date of enactment of this Act, the Secretary
shall use funds of the Commodity Credit Corporation to carry
out the 2002 Livestock Compensation Program announced by the
Secretary on October 10, 2002 (67 Fed. Reg. 63070), to provide
compensation for livestock losses during the applicable period
for losses (including losses due to blizzards that began in
calendar year 2006 and continued in January 2007) due to a
disaster, as determined by the Secretary, except that the
payment rate shall be 80 percent of the payment rate
established for the 2002 Livestock Compensation Program.
(2) Eligible applicants.--In carrying out the program
described in paragraph (1), the Secretary shall provide
assistance to any applicant for livestock losses during the
applicable period that--
(A)(i) conducts a livestock operation that is
located in a disaster county, including any applicant
conducting a livestock operation with eligible
livestock (within the meaning of the livestock
assistance program under section 101(b) of division B
of Public Law 108-324 (118 Stat. 1234)); or
(ii) produces an animal described in section
10806(a)(1) of the Farm Security and Rural Investment
Act of 2002 (21 U.S.C. 321d(a)(1));
(B) demonstrates to the Secretary that the
applicant suffered a material loss of pasture or hay
production, or experienced substantially increased feed
costs, due to damaging weather or a related condition
during the calendar year, as determined by the
Secretary; and
(C) meets all other eligibility requirements
established by the Secretary for the program.
(3) Mitigation.--In determining the eligibility for or
amount of payments for which a producer is eligible under the
livestock compensation program, the Secretary shall not
penalize a producer that takes actions (recognizing disaster
conditions) that reduce the average number of livestock the
producer owned for grazing during the production year for which
assistance is being provided.
(4) Payments for reduction in grazing on federal land.--
(A) In general.--In carrying out this subsection,
the Secretary shall make payments to livestock
producers that are in proportion to any reduction
during calendar year 2007 in grazing on Federal land in
a disaster county leased by the producers a result of
actions described in subparagraph (B).
(B) Federal actions.--Actions referred to in
subparagraph (A) are actions taken during calendar year
2007 by the Bureau of Land Management or other Federal
agency to restrict or prohibit grazing otherwise
allowed under the terms of the lease of the producers
in order to expedite the recovery of the Federal land
from drought, wildfire, or other natural disaster
declared by the Secretary during the applicable period.
(5) Limitation.--The Secretary shall ensure, to the maximum
extent practicable, that producers on a farm do not receive
duplicative payments under this subsection and another Federal
program with respect to any loss.
(b) Livestock Indemnity Payments.--
(1) In general.--The Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to make
livestock indemnity payments to producers on farms that have
incurred livestock losses during the applicable period
(including losses due to blizzards that began in calendar year
2006 and continued in January 2007) due to a disaster, as
determined by the Secretary, including losses due to
hurricanes, floods, anthrax, wildfires, and extreme heat.
(2) Payment rates.--Indemnity payments to a producer on a
farm under paragraph (1) shall be made at a rate of not less
than 30 percent of the market value of the applicable livestock
on the day before the date of death of the livestock, as
determined by the Secretary.
(c) Ewe Lamb Replacement and Retention.--
(1) In general.--The Secretary shall use $13,000,000 of
funds of the Commodity Credit Corporation to make payments to
producers located in disaster counties under the Ewe Lamb
Replacement and Retention Payment Program under part 784 of
title 7, Code of Federal Regulations (or a successor
regulation) for each qualifying ewe lamb retained or purchased
during the period beginning on January 1, 2006, and ending on
December 31, 2006, by the producers.
(2) Ineligibility for other assistance.--A producer that
receives assistance under this subsection shall not be eligible
to receive assistance under subsection (a).
(d) Election of Production Year.--If a producer incurred qualifying
production losses in more than one of the production years, the
producers on a farm shall elect to receive assistance under this
section in only one of the production years.
(e) Exception.--Notwithstanding any other provision of this
section, livestock producers on a farm shall be eligible to receive
assistance under subsection (a) or livestock indemnity payments under
subsection (b) if the producers on a farm--
(1) have livestock operations in a county included in the
geographic area covered by a major disaster or emergency
designated by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) due to blizzards, ice storms, or other winter-related
causes during the period of December 2006 through January 2007;
and
(2) meet all eligibility requirements for the assistance or
payments other than the requirements relating to disaster
declarations by the Secretary under subsections (a) and (b)(1).
SEC. 415. FLOODED CROP AND GRAZING LAND.
(a) In General.--The Secretary shall compensate eligible owners of
flooded crop and grazing land in the State of North Dakota.
(b) Eligibility.--
(1) In general.--To be eligible to receive compensation
under this section, an owner shall own land described in
subsection (a) that, during the 2 crop years preceding receipt
of compensation, was rendered incapable of use for the
production of an agricultural commodity or for grazing purposes
(in a manner consistent with the historical use of the land) as
the result of flooding, as determined by the Secretary.
(2) Inclusions.--Land described in paragraph (1) shall
include--
(A) land that has been flooded;
(B) land that has been rendered inaccessible due to
flooding; and
(C) a reasonable buffer strip adjoining the flooded
land, as determined by the Secretary.
(3) Administration.--The Secretary may establish--
(A) reasonable minimum acreage levels for
individual parcels of land for which owners may receive
compensation under this section; and
(B) the location and area of adjoining flooded land
for which owners may receive compensation under this
section.
(c) Sign-up.--The Secretary shall establish a sign-up program for
eligible owners to apply for compensation from the Secretary under this
section.
(d) Compensation Payments.--
(1) In general.--Subject to paragraphs (2) and (3), the
rate of an annual compensation payment under this section shall
be equal to 90 percent of the average annual per acre rental
payment rate (at the time of entry into the contract) for
comparable crop or grazing land that has not been flooded and
remains in production in the county where the flooded land is
located, as determined by the Secretary.
(2) Reduction.--An annual compensation payment under this
section shall be reduced by the amount of any conservation
program rental payments or Federal agricultural commodity
program payments received by the owner for the land during any
crop year for which compensation is received under this
section.
(3) Exclusion.--During any year in which an owner receives
compensation for flooded land under this section, the owner
shall not be eligible to participate in or receive benefits for
the flooded land under--
(A) the Federal crop insurance program established
under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.);
(B) the noninsured crop assistance program
established under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333); or
(C) any Federal agricultural crop disaster
assistance program.
(e) Relationship to Agricultural Commodity Programs.--The
Secretary, by regulation, shall provide for the preservation of
cropland base, allotment history, and payment yields applicable to land
described in subsection (a) that was rendered incapable of use for the
production of an agricultural commodity or for grazing purposes as the
result of flooding.
(f) Use of Land.--
(1) In general.--An owner that receives compensation under
this section for flooded land shall take such actions as are
necessary to not degrade any wildlife habitat on the land that
has naturally developed as a result of the flooding.
(2) Recreational activities.--To encourage owners that
receive compensation for flooded land to allow public access to
and use of the land for recreational activities, as determined
by the Secretary, the Secretary may--
(A) offer an eligible owner additional
compensation; and
(B) provide compensation for additional acreage
under this section.
(g) Funding.--
(1) In general.--The Secretary shall use $6,000,000 of
funds of the Commodity Credit Corporation to carry out this
section.
(2) Pro-rated payments.--In a case in which the amount made
available under paragraph (1) for a fiscal year is insufficient
to compensate all eligible owners under this section, the
Secretary shall pro-rate payments for that fiscal year on a per
acre basis.
SEC. 416. SUGAR BEET AND SUGAR CANE DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use $24,000,000 of funds of
the Commodity Credit Corporation to provide assistance to sugar beet
producers that suffered production losses (including quality losses)
for the applicable crop.
(b) Requirement.--The Secretary shall make payments under
subsection (a) in the same manner as payments were made under section
208 of the Agricultural Assistance Act of 2003 (Public Law 108-7; 117
Stat. 544), including using the same indemnity benefits as were used in
carrying out that section.
(c) Hawaii.--The Secretary shall use $3,000,000 of funds of the
Commodity Credit Corporation to assist sugarcane growers in Hawaii by
making a payment in that amount to an agricultural transportation
cooperative in Hawaii, the members of which are eligible to obtain a
loan under section 156(a) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272(a)).
(d) Election of Crop Year.--If a producer incurred qualifying crop
losses in more than one of the crop years during the applicable period,
the producers on a farm shall elect to receive assistance under this
section for losses incurred in only one of the crop years.
SEC. 417. NONINSURED CROP ASSISTANCE PROGRAM.
Section 196(c) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333(c)) is amended by adding at the end the
following:
``(5) Loss assessment for grazing.--The Secretary shall
permit the use of 1 claims adjustor certified by the Secretary
to assess the quantity of loss on the acreage or allotment of a
producer devoted to grazing for livestock under this
section.''.
SEC. 418. REDUCTION IN PAYMENTS.
The amount of any payment for which a producer is eligible under
this subtitle shall be reduced by any amount received by the producer
for the same loss or any similar loss under--
(1) the Department of Defense, Emergency Supplemental
Appropriations to Address Hurricanes in the Gulf of Mexico, 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;
(3) the Emergency Supplemental Appropriations Act for
Defense, the Global War on Terror, and Hurricane Recovery, 2006
(Public Law 109-234; 120 Stat. 418); or
(4) the Livestock Assistance Grant Program announced by the
Secretary on August 29, 2006.
Subtitle B--Small Business Economic Loss Grant Program
SEC. 421. SMALL BUSINESS ECONOMIC LOSS GRANT PROGRAM.
(a) Definition of Qualified State.--In this section, the term
``qualified State'' means a State in which at least 50 percent of the
counties of the State were declared to be primary agricultural disaster
areas by the Secretary during the applicable period.
(b) Grants to Qualified States.--
(1) In general.--The Secretary shall use $100,000,000 of
funds of the Commodity Credit Corporation to make grants to
State departments of agriculture or comparable State agencies
in qualified States.
(2) Amount.--
(A) In general.--Subject to subparagraph (B), the
Secretary shall allocate grants among qualified States
described in paragraph (1) based on the average value
of agricultural sector production in the qualified
State, determined as a percentage of the gross domestic
product of the qualified State.
(B) Minimum amount.--The minimum amount of a grant
under this subsection shall be $500,000.
(3) Requirement.--To be eligible to receive a grant under
this subsection, a qualified State shall agree to carry out an
expedited disaster assistance program to provide direct
payments to qualified small businesses in accordance with
subsection (c).
(c) Direct Payments to Qualified Small Businesses.--
(1) In general.--In carrying out an expedited disaster
assistance program described in subsection (b)(3), a qualified
State shall provide direct payments to eligible small
businesses in the qualified State that suffered material
economic losses during the applicable period as a direct result
of weather-related agricultural losses to the crop or livestock
production sectors of the qualified State, as determined by the
Secretary.
(2) Eligibility.--
(A) In general.--To be eligible to receive a direct
payment under paragraph (1), a small business shall--
(i) have less than $15,000,000 in average
annual gross income from all business
activities, at least 75 percent of which shall
be directly related to production agriculture
or agriculture support industries, as
determined by the Secretary;
(ii) verify the amount of economic loss
attributable to weather-related agricultural
losses using such documentation as the
Secretary and the head of the qualified State
agency may require;
(iii) have suffered losses attributable to
weather-related agricultural disasters that
equal at least 50 percent of the total economic
loss of the small business for each year a
grant is requested; and
(iv) demonstrate that the grant will
materially improve the likelihood the business
will--
(I) recover from the disaster; and
(II) continue to service and
support production agriculture.
(B) Emergency grants to assist low-income migrant
and seasonal farmworkers.--
(i) Funds made available by this subtitle
may be used to carry out assistance programs in
States that are consistent with the purpose and
intent of the program authorized at section
2281 of the Food, Agriculture, Conservation and
Trade Act of 1990 (42 U.S.C. 5177a).
(ii) In carrying out this subparagraph, a
qualified State may waive the gross income
requirement at subparagraph (A)(i) of this
paragraph.
(3) Requirements.--A direct payment to small business under
this subsection shall--
(A) be limited to not more than 2 years of
documented losses; and
(B) be in an amount of not more than 75 percent of
the documented average economic loss attributable to
weather-related agriculture disasters for each eligible
year in the qualified State.
(4) Insufficient funding.--If the grant funds received by a
qualified State agency under subsection (b) are insufficient to
fund the direct payments of the qualified State agency under
this subsection, the qualified State agency may apply a
proportional reduction to all of the direct payments.
Subtitle C--Forestry
SEC. 431. TREE ASSISTANCE PROGRAM.
(a) Definition of Tree.--In this section, the term ``tree''
includes--
(1) a tree (including a Christmas tree, ornamental tree,
nursery tree, and potted tree);
(2) a bush (including a shrub, nursery shrub, nursery bush,
ornamental bush, ornamental shrub, potted bush, and potted
shrub); and
(3) a vine (including a nursery vine and ornamental vine).
(b) Program.--Except as otherwise provided in this section, the
Secretary shall use such sums as are necessary of the funds of the
Commodity Credit Corporation to provide assistance under the terms and
conditions of the tree assistance program established under subtitle C
of title X of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8201 et seq.) to--
(1) producers who suffered tree losses in disaster
counties; and
(2) fruit and tree nut producers in disaster counties.
(c) Costs.--Funds made available under this section shall also be
made available to cover costs associated with tree pruning, tree
rehabilitation, and other appropriate tree-related activities as
determined by the Secretary.
(d) Scope of Assistance.--Assistance under this section shall
compensate for losses resulting from disasters during the applicable
period.
Subtitle D--Conservation
SEC. 441. EMERGENCY CONSERVATION PROGRAM.
The Secretary shall use an additional $35,000,000 of funds of the
Commodity Credit Corporation to carry out emergency measures, including
wildfire recovery efforts in Montana and other States, identified by
the Administrator of the Farm Service Agency as of the date of
enactment of this Act through the emergency conservation program
established under title IV of the Agricultural Credit Act of 1978 (16
U.S.C. 2201 et seq.), of which $3,000,000 shall be to repair broken
irrigation pipelines and damaged and collapsed water tanks, $1,000,000
to provide emergency loans for losses of agricultural income, and
$2,000,000 to repair ditch irrigation systems in conjunction with the
Presidential declaration of a major disaster (FEMA-1664-DR), dated
October 17, 2006, and related determinations issued under the authority
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act,
42 U.S.C. 5121-5206 (the Stafford Act): Provided, That the Secretary
may transfer a portion of these funds to the Natural Resources
Conservation Service, to include Resource Conservation and Development
councils.
SEC. 442. EMERGENCY WATERSHED PROTECTION PROGRAM.
The Secretary shall use an additional $50,000,000 of funds of the
Commodity Credit Corporation to carry out emergency measures identified
by the Chief of the Natural Resources Conservation Service as of the
date of enactment of this Act through the emergency watershed
protection program established under section 403 of the Agricultural
Credit Act of 1978 (16 U.S.C. 2203).
SEC. 443. 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''.
Subtitle E--Farm Service Agency
SEC. 451. FUNDING FOR ADDITIONAL PERSONNEL AND ADMINISTRATIVE SUPPORT.
The Secretary shall use $30,000,000 of funds of the Commodity
Credit Corporation--
(1) of which $9,000,000 shall be used to hire additional
County Farm Service Agency personnel to expedite the
implementation of, and delivery under, the agricultural
disaster and economic assistance programs under this title; and
(2) to be used as the Secretary determines to be necessary
to carry out this and other agriculture and disaster assistance
programs.
Subtitle F--Miscellaneous
SEC. 461. CONTRACT WAIVER.
In carrying out this title and section 101(a)(5) of the Emergency
Supplemental Appropriations for Hurricane Disasters Assistance Act,
2005 (Public Law 108-324; 118 Stat. 1233), the Secretary shall not
require participation in a crop insurance pilot program relating to
forage.
SEC. 462. INSECT INFESTATIONS.
(a) In General.--The Secretary, acting through the Administrator of
the Animal and Plant Health Inspection Service, shall use not less than
$20,000,000 of funds made available from the Commodity Credit
Corporation for the Animal and Plant Health Inspection Service to
survey and control insect infestations in the States of Nevada, Idaho,
and Utah.
(b) Use of Funds.--Funds described in subsection (a) shall be used
in a manner that promotes cooperative efforts between Federal programs
(including the plant protection and quarantine program of the Animal
and Plant Health Inspection Service) and State and local programs
carried out, in whole or in part, with Federal funds to fight insect
outbreaks.
SEC. 463. FUNDING.
The Secretary shall use the funds, facilities, and authorities of
the Commodity Credit Corporation to carry out this title, to remain
available until expended.
SEC. 464. REGULATIONS.
(a) In General.--The Secretary may promulgate such regulations as
are necessary to implement this title.
(b) Procedure.--The promulgation of the regulations and
administration of this title 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 carrying out
this section, the Secretary shall use the authority provided under
section 808 of title 5, United States Code.
Subtitle G--Emergency Designation
SEC. 471. EMERGENCY DESIGNATION.
The amounts provided under this title are designated as an
emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).
TITLE V--FAIR MINIMUM WAGE AND TAX RELIEF
Subtitle A--Fair Minimum Wage
SEC. 500. SHORT TITLE.
This subtitle may be cited as the ``Fair Minimum Wage Act of
2007''.
SEC. 501. 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;
``(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. 502. APPLICABILITY OF MINIMUM WAGE TO 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 the Commonwealth of the Northern Mariana
Islands.
(b) Transition.--Notwithstanding subsection (a), 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--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) 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 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.
Subtitle B--Small Business Tax Incentives
SEC. 510. SHORT TITLE; AMENDMENT OF CODE.
(a) Short Title.--This subtitle may be cited as the ``Small
Business and Work Opportunity 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.
PART I--SMALL BUSINESS TAX RELIEF PROVISIONS
Subpart A--General Provisions
SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL BUSINESSES.
Section 179 (relating to election to expense certain depreciable
business assets) is amended by striking ``2010'' each place it appears
and inserting ``2011''.
SEC. 512. EXTENSION AND MODIFICATION OF 15-YEAR STRAIGHT-LINE COST
RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND
QUALIFIED RESTAURANT IMPROVEMENTS; 15-YEAR STRAIGHT-LINE
COST RECOVERY FOR CERTAIN IMPROVEMENTS TO RETAIL SPACE.
(a) Extension of Leasehold and Restaurant Improvements.--
(1) In general.--Clauses (iv) and (v) of section
168(e)(3)(E) (relating to 15-year property) are each amended by
striking ``January 1, 2008'' and inserting ``January 1, 2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2007.
(b) Modification of Treatment of Qualified Restaurant Property as
15-Year Property for Purposes of Depreciation Deduction.--
(1) Treatment to include new construction.--Paragraph (7)
of section 168(e) (relating to classification of property) is
amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is a
building (or its structural components) or an improvement to
such building if more than 50 percent of such building's square
footage is devoted to preparation of, and seating for on-
premises consumption of, prepared meals.''.
(2) Effective date.--The amendment made by this subsection
shall apply to any property placed in service after the date of
the enactment of this Act, the original use of which begins
with the taxpayer after such date.
(c) Recovery Period for Depreciation of Certain Improvements to
Retail Space.--
(1) 15-year recovery period.--Section 168(e)(3)(E)
(relating to 15-year property) is amended by striking ``and''
at the end of clause (vii), by striking the period at the end
of clause (viii) and inserting ``, and'', and by adding at the
end the following new clause:
``(ix) any qualified retail improvement
property placed in service before January 1,
2009.''.
(2) Qualified retail improvement property.--Section 168(e)
is amended by adding at the end the following new paragraph:
``(8) Qualified retail improvement property.--
``(A) In general.--The term `qualified retail
improvement property' means any improvement to an
interior portion of a building which is nonresidential
real property if--
``(i) such portion is open to the general
public and is used in the retail trade or
business of selling tangible personal property
to the general public, and
``(ii) such improvement is placed in
service more than 3 years after the date the
building was first placed in service.
``(B) Improvements made by owner.--In the case of
an improvement made by the owner of such improvement,
such improvement shall be qualified retail improvement
property (if at all) only so long as such improvement
is held by such owner. Rules similar to the rules under
paragraph (6)(B) shall apply for purposes of the
preceding sentence.
``(C) Certain improvements not included.--Such term
shall not include any improvement for which the
expenditure is attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component
benefitting a common area, or
``(iv) the internal structural framework of
the building.''.
(3) Requirement to use straight line method.--Section
168(b)(3) is amended by adding at the end the following new
subparagraph:
``(I) Qualified retail improvement property
described in subsection (e)(8).''.
(4) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating to
subparagraph (E)(viii) the following new item:
(E)(ix).................................................... 39''.
(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL BUSINESS.
(a) Cash Accounting Permitted.--
(1) In general.--Section 446 (relating to general rule for
methods of accounting) is amended by adding at the end the
following new subsection:
``(g) Certain Small Business Taxpayers Permitted To Use Cash
Accounting Method Without Limitation.--
``(1) In general.--An eligible taxpayer shall not be
required to use an accrual method of accounting for any taxable
year.
``(2) Eligible taxpayer.--For purposes of this subsection,
a taxpayer is an eligible taxpayer with respect to any taxable
year if--
``(A) for each of the prior taxable years ending on
or after the date of the enactment of this subsection,
the taxpayer (or any predecessor) met the gross
receipts test in effect under section 448(c) for such
taxable year, and
``(B) the taxpayer is not subject to section 447 or
448.''.
(2) Expansion of gross receipts test.--
(A) In general.--Paragraph (3) of section 448(b)
(relating to entities with gross receipts of not more
than $5,000,000) is amended to read as follows:
``(3) Entities meeting gross receipts test.--Paragraphs (1)
and (2) of subsection (a) shall not apply to any corporation or
partnership for any taxable year if, for each of the prior
taxable years ending on or after the date of the enactment of
the Small Business and Work Opportunity Act of 2007, the entity
(or any predecessor) met the gross receipts test in effect
under subsection (c) for such prior taxable year.''.
(B) Conforming amendments.--Section 448(c) of such
Code is amended--
(i) by striking ``$5,000,000'' in the
heading thereof,
(ii) by striking ``$5,000,000'' each place
it appears in paragraph (1) and inserting
``$10,000,000'', and
(iii) by adding at the end the following
new paragraph:
``(4) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, the dollar amount
contained in paragraph (1) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, by substituting `calendar year
2007' for `calendar year 1992' in subparagraph (B)
thereof.
``If any amount as adjusted under this subparagraph is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(b) Clarification of Inventory Rules for Small Business.--
(1) In general.--Section 471 (relating to general rule for
inventories) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Business Taxpayers Not Required To Use Inventories.--
``(1) In general.--A qualified taxpayer shall not be
required to use inventories under this section for a taxable
year.
``(2) Treatment of taxpayers not using inventories.--If a
qualified taxpayer does not use inventories with respect to any
property for any taxable year beginning after the date of the
enactment of this subsection, such property shall be treated as
a material or supply which is not incidental.
``(3) Qualified taxpayer.--For purposes of this subsection,
the term `qualified taxpayer' means--
``(A) any eligible taxpayer (as defined in section
446(g)(2)), and
``(B) any taxpayer described in section
448(b)(3).''.
(2) Conforming amendments.--
(A) Subpart D of part II of subchapter E of chapter
1 is amended by striking section 474.
(B) The table of sections for subpart D of part II
of subchapter E of chapter 1 is amended by striking the
item relating to section 474.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK OPPORTUNITY TAX
CREDIT AND WELFARE-TO-WORK CREDIT.
(a) Extension.--Section 51(c)(4)(B) (relating to termination) is
amended by striking ``2007'' and inserting ``2012''.
(b) Increase in Maximum Age for Designated Community Residents.--
(1) In general.--Paragraph (5) of section 51(d) is amended
to read as follows:
``(5) Designated community residents.--
``(A) In general.--The term `designated community
resident' means any individual who is certified by the
designated local agency--
``(i) as having attained age 18 but not age
40 on the hiring date, and
``(ii) as having his principal place of
abode within an empowerment zone, 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
``(ii) during the 5-year periods 1990
through 1994 and 1995 through 1999 had a net
population loss.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
``(D) a designated community resident,''.
(c) Clarification of Treatment of Individuals Under Individual Work
Plans.--Subparagraph (B) of section 51(d)(6) (relating to vocational
rehabilitation referral) is amended by striking ``or'' at the end of
clause (i), by striking the period at the end of clause (ii) and
inserting ``, or'', and by adding at the end the following new clause:
``(iii) an individual work plan developed
and implemented by an employment network
pursuant to subsection (g) of section 1148 of
the Social Security Act with respect to which
the requirements of such subsection are met.''.
(d) Treatment of Disabled Veterans Under the Work Opportunity Tax
Credit.--
(1) Disabled veterans treated as members of targeted
group.--
(A) In general.--Subparagraph (A) of section
51(d)(3) (relating to qualified veteran) is amended by
striking ``agency as being a member of a family'' and
all that follows and inserting ``agency as--
``(i) being a member of a family receiving
assistance under a food stamp program under the
Food Stamp Act of 1977 for at least a 3-month
period ending during the 12-month period ending
on the hiring date, or
``(ii) entitled to compensation for a
service-connected disability incurred after
September 10, 2001.''.
(B) Definitions.--Paragraph (3) of section 51(d) is
amended by adding at the end the following new
subparagraph:
``(C) Other definitions.--For purposes of
subparagraph (A), the terms `compensation' and
`service-connected' have the meanings given such terms
under section 101 of title 38, United States Code.''.
(2) Increase in amount of wages taken into account for
disabled veterans.--Paragraph (3) of section 51(b) is amended--
(A) by inserting ``($12,000 per year in the case of
any individual who is a qualified veteran by reason of
subsection (d)(3)(A)(ii))'' before the period at the
end, and
(B) by striking ``only first $6,000 of'' in the
heading and inserting ``limitation on''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act, in taxable years ending after such date.
SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
(a) Employment Taxes.--Chapter 25 (relating to general provisions
relating to employment taxes) is amended by adding at the end the
following new section:
``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) General Rules.--For purposes of the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer (and no other person shall be
treated as the employer) of any work site employee performing
services for any customer of such organization, but only with
respect to remuneration remitted by such organization to such
work site employee, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(b) Successor Employer Status.--For purposes of sections
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
``(1) a certified professional employer organization
entering into a service contract with a customer with respect
to a work site employee shall be treated as a successor
employer and the customer shall be treated as a predecessor
employer during the term of such service contract, and
``(2) a customer whose service contract with a certified
professional employer organization is terminated with respect
to a work site employee shall be treated as a successor
employer and the certified professional employer organization
shall be treated as a predecessor employer.
``(c) Liability of Certified Professional Employer Organization.--
Solely for purposes of its liability for the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer of any individual (other than a work
site employee or a person described in subsection (f)) who is
performing services covered by a contract meeting the
requirements of section 7705(e)(2), but only with respect to
remuneration remitted by such organization to such individual,
and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit specified in
paragraph (2)--
``(A) such credit with respect to a work site
employee performing services for the customer applies
to the customer, not the certified professional
employer organization,
``(B) the customer, and not the certified
professional employer organization, shall take into
account wages and employment taxes--
``(i) paid by the certified professional
employer organization with respect to the work
site employee, and
``(ii) for which the certified professional
employer organization receives payment from the
customer, and
``(C) the certified professional employer
organization shall furnish the customer with any
information necessary for the customer to claim such
credit.
``(2) Credits specified.--A credit is specified in this
paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing research
activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer
social security taxes paid with respect to employee
cash tips),
``(D) section 45C (clinical testing expenses for
certain drugs for rare diseases or conditions),
``(E) section 51 (work opportunity credit),
``(F) section 51A (temporary incentives for
employing long-term family assistance recipients),
``(G) section 1396 (empowerment zone employment
credit),
``(H) 1400(d) (DC Zone employment credit),
``(I) Section 1400H (renewal community employment
credit), and
``(J) any other section as provided by the
Secretary.
``(e) Special Rule for Related Party.--This section shall not apply
in the case of a customer which bears a relationship to a certified
professional employer organization described in section 267(b) or
707(b). For purposes of the preceding sentence, such sections shall be
applied by substituting `10 percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes of the
taxes imposed under this subtitle, an individual with net earnings from
self-employment derived from the customer's trade or business is not a
work site employee with respect to remuneration paid by a certified
professional employer organization.
``(g) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Certified Professional Employer Organization Defined.--Chapter
79 (relating to definitions) is amended by adding at the end the
following new section:
``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS DEFINED.
``(a) In General.--For purposes of this title, the term `certified
professional employer organization' means a person who has been
certified by the Secretary for purposes of section 3511 as meeting the
requirements of subsection (b).
``(b) General Requirements.--A person meets the requirements of
this subsection if such person--
``(1) demonstrates that such person (and any owner,
officer, and such other persons as may be specified in
regulations) meets such requirements as the Secretary shall
establish with respect to tax status, background, experience,
business location, and annual financial audits,
``(2) computes its taxable income using an accrual method
of accounting unless the Secretary approves another method,
``(3) agrees that it will satisfy the bond and independent
financial review requirements of subsection (c) on an ongoing
basis,
``(4) agrees that it will satisfy such reporting
obligations as may be imposed by the Secretary,
``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing within such
time as the Secretary may prescribe of any change that
materially affects whether it continues to meet the
requirements of this subsection.
``(c) Bond and Independent Financial Review Requirements.--
``(1) In general.--An organization meets the requirements
of this paragraph if such organization--
``(A) meets the bond requirements of paragraph (2),
and
``(B) meets the independent financial review
requirements of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional
employer organization meets the requirements of this
paragraph if the organization has posted a bond for the
payment of taxes under subtitle C (in a form acceptable
to the Secretary) in an amount at least equal to the
amount specified in subparagraph (B).
``(B) Amount of bond.--For the period April 1 of
any calendar year through March 31 of the following
calendar year, the amount of the bond required is equal
to the greater of--
``(i) 5 percent of the organization's
liability under section 3511 for taxes imposed
by subtitle C during the preceding calendar
year (but not to exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent review date,
caused to be prepared and provided to the Secretary (in
such manner as the Secretary may prescribe) an opinion
of an independent certified public accountant that the
certified professional employer organization's
financial statements are presented fairly in accordance
with generally accepted accounting principles, and
``(B) provides, not later than the last day of the
second month beginning after the end of each calendar
quarter, to the Secretary from an independent certified
public accountant an assertion regarding Federal
employment tax payments and an examination level
attestation on such assertion.
Such assertion shall state that the organization has withheld
and made deposits of all taxes imposed by chapters 21, 22, and
24 of the Internal Revenue Code in accordance with regulations
imposed by the Secretary for such calendar quarter and such
examination level attestation shall state that such assertion
is fairly stated, in all material respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all professional
employer organizations that are members of a controlled group
within the meaning of sections 414(b) and (c) shall be treated
as a single organization.
``(5) Failure to file assertion and attestation.--If the
certified professional employer organization fails to file the
assertion and attestation required by paragraph (3) with
respect to any calendar quarter, then the requirements of
paragraph (3) with respect to such failure shall be treated as
not satisfied for the period beginning on the due date for such
attestation.
``(6) Review date.--For purposes of paragraph (3)(A), the
review date shall be 6 months after the completion of the
organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary may
suspend or revoke a certification of any person under subsection (b)
for purposes of section 3511 if the Secretary determines that such
person is not satisfying the representations or requirements of
subsections (b) or (c), or fails to satisfy applicable accounting,
reporting, payment, or deposit requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee' means,
with respect to a certified professional employer organization,
an individual who--
``(A) performs services for a customer pursuant to
a contract which is between such customer and the
certified professional employer organization and which
meets the requirements of paragraph (2), and
``(B) performs services at a work site meeting the
requirements of paragraph (3).
``(2) Service contract requirements.--A contract meets the
requirements of this paragraph with respect to an individual
performing services for a customer if such contract is in
writing and provides that the certified professional employer
organization shall--
``(A) assume responsibility for payment of wages to
such individual, without regard to the receipt or
adequacy of payment from the customer for such
services,
``(B) assume responsibility for reporting,
withholding, and paying any applicable taxes under
subtitle C, with respect to such individual's wages,
without regard to the receipt or adequacy of payment
from the customer for such services,
``(C) assume responsibility for any employee
benefits which the service contract may require the
organization to provide, without regard to the receipt
or adequacy of payment from the customer for such
services,
``(D) assume responsibility for hiring, firing, and
recruiting workers in addition to the customer's
responsibility for hiring, firing and recruiting
workers,
``(E) maintain employee records relating to such
individual, and
``(F) agree to be treated as a certified
professional employer organization for purposes of
section 3511 with respect to such individual.
``(3) Work site coverage requirement.--The requirements of
this paragraph are met with respect to an individual if at
least 85 percent of the individuals performing services for the
customer at the work site where such individual performs
services are subject to 1 or more contracts with the certified
professional employer organization which meet the requirements
of paragraph (2) (but not taking into account those individuals
who are excluded employees within the meaning of section
414(q)(5)).
``(f) Determination of Employment Status.--Except to the extent
necessary for purposes of section 3511, nothing in this section shall
be construed to affect the determination of who is an employee or
employer for purposes of this title.
``(g) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer Organizations.--
If a certified professional employer organization (as defined in
section 7705), or a customer of such organization, makes a contribution
to the State's unemployment fund with respect to a work site employee,
such organization shall be eligible for the credits available under
this section with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of paragraph
(3) and inserting ``; and'' and by inserting after
paragraph (3) the following new paragraph:
``(4) if the taxpayer is a certified professional employer
organization (as defined in section 7705) that is treated as
the employer under section 3511, such certified professional
employer organization is permitted to collect and remit, in
accordance with paragraphs (1), (2), and (3), contributions
during the taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and
(3)'' and inserting ``paragraphs (1), (2), (3),
and (4)'', and
(ii) by striking ``paragraph (1), (2), or
(3)'' and inserting ``paragraph (1), (2), (3),
or (4)''.
(3) Section 6053(c) (relating to reporting of tips) is
amended by adding at the end the following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the case
of a certified professional employer organization that is
treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified professional
employer organization shall furnish to the customer any
information necessary to complete such reporting no later than
such time as the Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:
``Sec. 3511. Certified professional employer organizations''.
(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the following
new item:
``Sec. 7705. Certified professional employer organizations defined''.
(e) Reporting Requirements and Obligations.--The Secretary of the
Treasury shall develop such reporting and recordkeeping rules,
regulations, and procedures as the Secretary determines necessary or
appropriate to ensure compliance with the amendments made by this
section with respect to entities applying for certification as
certified professional employer organizations or entities that have
been so certified. Such rules shall be designed in a manner which
streamlines, to the extent possible, the application of requirements of
such amendments, the exchange of information between a certified
professional employer organization and its customers, and the reporting
and recordkeeping obligations of the certified professional employer
organization.
(f) User Fees.--Subsection (b) of section 7528 (relating to
Internal Revenue Service user fees) is amended by adding at the end the
following new paragraph:
``(4) Certified professional employer organizations.--The
fee charged under the program in connection with the
certification by the Secretary of a professional employer
organization under section 7705 shall not exceed $500.''.
(g) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply with respect to wages for services performed on or after
January 1 of the first calendar year beginning more than 12
months after the date of the enactment of this Act.
(2) Certification program.--The Secretary of the Treasury
shall establish the certification program described in section
7705(b) of the Internal Revenue Code of 1986, as added by
subsection (b), not later than 6 months before the effective
date determined under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create any
inference with respect to the determination of who is an employee or
employer--
(1) for Federal tax purposes (other than the purposes set
forth in the amendments made by this section), or
(2) for purposes of any other provision of law.
SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT IN HIGH OUT-MIGRATION
COUNTIES.
(a) In General.--Section 168 (relating to accelerated cost recovery
system) is amended by adding at the end the following new subsection:
``(m) Rural Investment Property.--
``(1) In general.--For purposes of subsection (a), the
applicable recovery period for qualified rural investment
property shall be determined in accordance with the table
contained in paragraph (2) in lieu of the table contained in
subsection (c).
``(2) Applicable recovery period for rural investment
property.--For purposes of paragraph (1)--
The applicable
`` ``In the case of: recovery period is:
3-year property........................... 2 years
5-year property........................... 3 years
7-year property........................... 4 years
10-year property.......................... 6 years
15-year property.......................... 9 years
20-year property.......................... 12 years
Nonresidential real property.............. 22 years.
``(3) Qualified rural investment property defined.--For
purposes of this subsection--
``(A) In general.--The term `qualified rural
investment property' means property which is property
described in the table in paragraph (2) and which is--
``(i) used by the taxpayer predominantly in
the active conduct of a trade or business
within a high out-migration county,
``(ii) not used or located outside such
county on a regular basis,
``(iii) not acquired (directly or
indirectly) by the taxpayer from a person who
is related to the taxpayer (within the meaning
of section 465(b)(3)(C)), and
``(iv) not property (or any portion
thereof) placed in service for purposes of
operating any racetrack or other facility used
for gambling.
``(B) High out-migration county.--The term `high
out-migration county' means any county which--
``(i) is outside a metropolitan statistical
area (defined as such by the Office of
Management and Budget), and
``(ii) during the 5-year periods 1990
through 1994 and 1995 through 1999 had a net
population loss.
``(4) Termination.--This subsection shall not apply to
property placed in service after March 31, 2008.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act, the original use of which begins with the taxpayer after such
date.
SEC. 517. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED SECTION 179
GULF OPPORTUNITY ZONE PROPERTY.
Paragraph (2) of section 1400N(e) (relating to qualified section
179 Gulf Opportunity Zone property) is amended--
(1) by striking ``this subsection, the term'' and inserting
``this subsection--
``(A) In general.--The term'', and
(2) by adding at the end the following new subparagraph:
``(B) Extension for certain property.--In the case
of property substantially all of the use of which is in
one or more specified portions of the GO Zone (as
defined by subsection (d)(6)), such term shall include
section 179 property (as so defined) which is described
in subsection (d)(2), determined--
``(i) without regard to subsection (d)(6),
and
``(ii) by substituting `2008' for `2007' in
subparagraph (A)(v) thereof.''.
Subpart B--Subchapter S Provisions
SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS PASSIVE
INVESTMENT INCOME.
(a) In General.--Section 1362(d)(3) is amended by striking
subparagraphs (B), (C), (D), (E), and (F) and inserting the following
new subparagraph:
``(B) Passive investment income defined.--
``(i) In general.--Except as otherwise
provided in this subparagraph, the term
`passive investment income' means gross
receipts derived from royalties, rents,
dividends, interest, and annuities.
``(ii) Exception for interest on notes from
sales of inventory.--The term `passive
investment income' shall not include interest
on any obligation acquired in the ordinary
course of the corporation's trade or business
from its sale of property described in section
1221(a)(1).
``(iii) Treatment of certain lending or
finance companies.--If the S corporation meets
the requirements of section 542(c)(6) for the
taxable year, the term `passive investment
income' shall not include gross receipts for
the taxable year which are derived directly
from the active and regular conduct of a
lending or finance business (as defined in
section 542(d)(1)).
``(iv) Treatment of certain dividends.--If
an S corporation holds stock in a C corporation
meeting the requirements of section 1504(a)(2),
the term `passive investment income' shall not
include dividends from such C corporation to
the extent such dividends are attributable to
the earnings and profits of such C corporation
derived from the active conduct of a trade or
business.
``(v) Exception for banks, etc.--In the
case of a bank (as defined in section 581) or a
depository institution holding company (as
defined in section 3(w)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(w)(1)),
the term `passive investment income' shall not
include--
``(I) interest income earned by
such bank or company, or
``(II) dividends on assets required
to be held by such bank or company,
including stock in the Federal Reserve
Bank, the Federal Home Loan Bank, or
the Federal Agricultural Mortgage Bank
or participation certificates issued by
a Federal Intermediate Credit Bank.''.
(b) Conforming Amendment.--Clause (i) of section 1042(c)(4)(A) is
amended by striking ``section 1362(d)(3)(C)'' and inserting ``section
1362(d)(3)(B)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.
(a) In General.--Section 1361 (defining S corporation) is amended
by adding at the end the following new subsection:
``(f) Restricted Bank Director Stock.--
``(1) In general.--Restricted bank director stock shall not
be taken into account as outstanding stock of the S corporation
in applying this subchapter (other than section 1368(f)).
``(2) Restricted bank director stock.--For purposes of this
subsection, the term `restricted bank director stock' means
stock in a bank (as defined in section 581) or a depository
institution holding company (as defined in section 3(w)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), if
such stock--
``(A) is required to be held by an individual under
applicable Federal or State law in order to permit such
individual to serve as a director, and
``(B) is subject to an agreement with such bank or
company (or a corporation which controls (within the
meaning of section 368(c)) such bank or company)
pursuant to which the holder is required to sell back
such stock (at the same price as the individual
acquired such stock) upon ceasing to hold the office of
director.
``(3) Cross reference.--
``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.
(b) Distributions.--Section 1368 (relating to distributions) is
amended by adding at the end the following new subsection:
``(f) Restricted Bank Director Stock.--If a director receives a
distribution (not in part or full payment in exchange for stock) from
an S corporation with respect to any restricted bank director stock (as
defined in section 1361(f)), the amount of such distribution--
``(1) shall be includible in gross income of the director,
and
``(2) shall be deductible by the corporation for the
taxable year of such corporation in which or with which ends
the taxable year in which such amount in included in the gross
income of the director.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(2) Special rule for treatment as second class of stock.--
In the case of any taxable year beginning after December 31,
1996, restricted bank director stock (as defined in section
1361(f) of the Internal Revenue Code of 1986, as added by this
section) shall not be taken into account in determining whether
an S corporation has more than 1 class of stock.
SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE RESERVE
METHOD OF ACCOUNTING ON BECOMING S CORPORATION.
(a) In General.--Section 1361, as amended by this Act, is amended
by adding at the end the following new subsection:
``(g) Special Rule for Bank Required To Change From the Reserve
Method of Accounting on Becoming S Corporation.--In the case of a bank
which changes from the reserve method of accounting for bad debts
described in section 585 or 593 for its first taxable year for which an
election under section 1362(a) is in effect, the bank may elect to take
into account any adjustments under section 481 by reason of such change
for the taxable year immediately preceding such first taxable year.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED SUBCHAPTER S
SUBSIDIARY.
(a) In General.--Subparagraph (C) of section 1361(b)(3) (relating
to treatment of terminations of qualified subchapter S subsidiary
status) is amended--
(1) by striking ``For purposes of this title,'' and
inserting the following:
``(i) In general.--For purposes of this
title,'', and
(2) by inserting at the end the following new clause:
``(ii) Termination by reason of sale of
stock.--If the failure to meet the requirements
of subparagraph (B) is by reason of the sale of
stock of a corporation which is a qualified
subchapter S subsidiary, the sale of such stock
shall be treated as if--
``(I) the sale were a sale of an
undivided interest in the assets of
such corporation (based on the
percentage of the corporation's stock
sold), and
``(II) the sale were followed by an
acquisition by such corporation of all
of its assets (and the assumption by
such corporation of all of its
liabilities) in a transaction to which
section 351 applies.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006 .
SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS ATTRIBUTABLE TO PRE-
1983 YEARS FOR CERTAIN CORPORATIONS.
In the case of a corporation which is--
(1) described in section 1311(a)(1) of the Small Business
Job Protection Act of 1996, and
(2) not described in section 1311(a)(2) of such Act,
the amount of such corporation's accumulated earnings and profits (for
the first taxable year beginning after the date of the enactment of
this Act) shall be reduced by an amount equal to the portion (if any)
of such accumulated earnings and profits which were accumulated in any
taxable year beginning before January 1, 1983, for which such
corporation was an electing small business corporation under subchapter
S of the Internal Revenue Code of 1986.
SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN ELECTING SMALL
BUSINESS TRUST.
(a) No Look Through for Eligibility Purposes.--Clause (v) of
section 1361(c)(2)(B) is amended by adding at the end the following new
sentence: ``This clause shall not apply for purposes of subsection
(b)(1)(C).''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 527. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS INCURRED BY
AN ELECTING SMALL BUSINESS TRUST TO ACQUIRE S CORPORATION
STOCK.
(a) In General.--Subparagraph (C) of section 641(c)(2) (relating to
modifications) is amended by inserting after clause (iii) the following
new clause:
``(iv) Any interest expense paid or accrued
on indebtedness incurred to acquire stock in an
S corporation.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2006.
PART II--REVENUE PROVISIONS
SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING PROVISIONS OF THE
AMERICAN JOBS CREATION ACT OF 2004.
(a) Leases to Foreign Entities.--Section 849(b) of the American
Jobs Creation Act of 2004 is amended by adding at the end the following
new paragraph:
``(5) Leases to foreign entities.--In the case of tax-
exempt use property leased to a tax-exempt entity which is a
foreign person or entity, the amendments made by this part
shall apply to taxable years beginning after December 31, 2006,
with respect to leases entered into on or before March 12,
2004.''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the enactment of the American Jobs Creation
Act of 2004.
SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS AS
DOMESTIC CORPORATIONS TO CERTAIN TRANSACTIONS OCCURRING
AFTER MARCH 20, 2002.
(a) In General.--Section 7874(b) (relating to inverted corporations
treated as domestic corporations) is amended to read as follows:
``(b) Inverted Corporations Treated as Domestic Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this title
as a domestic corporation if such corporation would be a
surrogate foreign corporation if subsection (a)(2) were applied
by substituting `80 percent' for `60 percent'.
``(2) Special rule for certain transactions occurring after
march 20, 2002.--
``(A) In general.--If--
``(i) paragraph (1) does not apply to a
foreign corporation, but
``(ii) paragraph (1) would apply to such
corporation if, in addition to the substitution
under paragraph (1), subsection (a)(2) were
applied by substituting `March 20, 2002' for
`March 4, 2003' each place it appears,
then paragraph (1) shall apply to such corporation but
only with respect to taxable years of such corporation
beginning after December 31, 2006.
``(B) Special rules.--Subject to such rules as the
Secretary may prescribe, in the case of a corporation
to which paragraph (1) applies by reason of this
paragraph--
``(i) the corporation shall be treated, as
of the close of its last taxable year beginning
before January 1, 2007, as having transferred
all of its assets, liabilities, and earnings
and profits to a domestic corporation in a
transaction with respect to which no tax is
imposed under this title,
``(ii) the bases of the assets transferred
in the transaction to the domestic corporation
shall be the same as the bases of the assets in
the hands of the foreign corporation, subject
to any adjustments under this title for built-
in losses,
``(iii) the basis of the stock of any
shareholder in the domestic corporation shall
be the same as the basis of the stock of the
shareholder in the foreign corporation for
which it is treated as exchanged, and
``(iv) the transfer of any earnings and
profits by reason of clause (i) shall be
disregarded in determining any deemed dividend
or foreign tax creditable to the domestic
corporation with respect to such transfer.
``(C) Regulations.--The Secretary may prescribe
such regulations as may be necessary or appropriate to
carry out this paragraph, including regulations to
prevent the avoidance of the purposes of this
paragraph.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2006.
SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.
(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(B) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(C) by adding at the end the following new
paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for punitive
damages in connection with any judgment in, or settlement of,
any action. This paragraph shall not apply to punitive damages
described in section 104(c).''.
(2) Conforming amendment.--The heading for section 162(g)
is amended by inserting ``Or Punitive Damages'' after ``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer or
Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:
``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR OTHERWISE.
``Gross income shall include any amount paid to or on behalf of a
taxpayer as insurance or otherwise by reason of the taxpayer's
liability (or agreement) to pay punitive damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--This
section shall apply to payments by a person to or on behalf of another
person as insurance or otherwise by reason of the other person's
liability (or agreement) to pay punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the end
the following new item:
``Sec. 91. Punitive damages compensated by insurance or otherwise''.
(c) Effective Date.--The amendments made by this section shall
apply to damages paid or incurred on or after the date of the enactment
of this Act.
SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, AND OTHER
AMOUNTS.
(a) In General.--Subsection (f) of section 162 (relating to trade
or business expenses) is amended to read as follows:
``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation
to--
``(A) the violation of any law, or
``(B) an investigation or inquiry into the
potential violation of any law which is initiated by
such government or entity.
``(2) Exception for amounts constituting restitution or
paid to come into compliance with law.--Paragraph (1) shall not
apply to any amount which--
``(A) the taxpayer establishes--
``(i) constitutes restitution (or
remediation of property) for damage or harm
caused by, or which may be caused by, the
violation of any law or the potential violation
of any law, or
``(ii) is paid to come into compliance with
any law which was violated or involved in the
investigation or inquiry, and
``(B) is identified as an amount described in
clause (i) or (ii) of subparagraph (A), as the case may
be, in the court order or settlement agreement, except
that the requirement of this subparagraph shall not
apply in the case of any settlement agreement which
requires the taxpayer to pay or incur an amount not
greater than $1,000,000.
A taxpayer shall not meet the requirements of subparagraph (A)
solely by reason an identification under subparagraph (B). This
paragraph shall not apply to any amount paid or incurred as
reimbursement to the government or entity for the costs of any
investigation or litigation unless such amount is paid or
incurred for a cost or fee regularly charged for any routine
audit or other customary review performed by the government or
entity.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to any
amount paid or incurred by order of a court in a suit in which
no government or entity described in paragraph (4) is a party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises
self-regulatory powers (including imposing sanctions)
in connection with a qualified board or exchange (as
defined in section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory
powers (including imposing sanctions) as part of
performing an essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:
``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES, PENALTIES, AND
OTHER AMOUNTS.
``(a) Requirement of Reporting.--
``(1) In general.--The appropriate official of any
government or entity which is described in section 162(f)(4)
which is involved in a suit or agreement described in paragraph
(2) shall make a return in such form as determined by the
Secretary setting forth--
``(A) the amount required to be paid as a result of
the suit or agreement to which paragraph (1) of section
162(f) applies,
``(B) any amount required to be paid as a result of
the suit or agreement which constitutes restitution or
remediation of property, and
``(C) any amount required to be paid as a result of
the suit or agreement for the purpose of coming into
compliance with any law which was violated or involved
in the investigation or inquiry.
``(2) Suit or agreement described.--
``(A) In general.--A suit or agreement is described
in this paragraph if--
``(i) it is--
``(I) a suit with respect to a
violation of any law over which the
government or entity has authority and
with respect to which there has been a
court order, or
``(II) an agreement which is
entered into with respect to a
violation of any law over which the
government or entity has authority, or
with respect to an investigation or
inquiry by the government or entity
into the potential violation of any law
over which such government or entity
has authority, and
``(ii) the aggregate amount involved in all
court orders and agreements with respect to the
violation, investigation, or inquiry is $600 or
more.
``(B) Adjustment of reporting threshold.--The
Secretary may adjust the $600 amount in subparagraph
(A)(ii) as necessary in order to ensure the efficient
administration of the internal revenue laws.
``(3) Time of filing.--The return required under this
subsection shall be filed not later than--
``(A) 30 days after the date on which a court order
is issued with respect to the suit or the date the
agreement is entered into, as the case may be, or
``(B) the date specified by the Secretary.
``(b) Statements To Be Furnished to Individuals Involved in the
Settlement.--Every person required to make a return under subsection
(a) shall furnish to each person who is a party to the suit or
agreement a written statement showing--
``(1) the name of the government or entity, and
``(2) the information supplied to the Secretary under
subsection (a)(1).
The written statement required under the preceding sentence shall be
furnished to the person at the same time the government or entity
provides the Secretary with the information required under subsection
(a).
``(c) Appropriate Official Defined.--For purposes of this section,
the term `appropriate official' means the officer or employee having
control of the suit, investigation, or inquiry or the person
appropriately designated for purposes of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is amended
by inserting after the item relating to section 6050V the
following new item:
``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred on or after the date of the enactment
of this Act, except that such amendments shall not apply to amounts
paid or incurred under any binding order or agreement entered into
before such date. Such exception shall not apply to an order or
agreement requiring court approval unless the approval was obtained
before such date.
SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF INDIVIDUALS.
(a) In General.--Subpart A of part II of subchapter N of chapter 1
is amended by inserting after section 877 the following new section:
``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom this
section applies shall be treated as sold on the day before the
expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this
title, any gain arising from such sale shall be taken
into account for the taxable year of the sale, and
``(B) any loss arising from such sale shall be
taken into account for the taxable year of the sale to
the extent otherwise provided by this title, except
that section 1091 shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into account
under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of
any individual by reason of this section shall be
reduced (but not below zero) by $600,000. For purposes
of this paragraph, allocable expatriation gain taken
into account under subsection (f)(2) shall be treated
in the same manner as an amount required to be
includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an
expatriation date occurring in any calendar
year after 2007, the $600,000 amount under
subparagraph (A) shall be increased by an
amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2006' for `calendar year 1992' in
subparagraph (B) thereof.
``(ii) Rounding rules.--If any amount after
adjustment under clause (i) is not a multiple
of $1,000, such amount shall be rounded to the
next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects
the application of this paragraph--
``(i) this section (other than this
paragraph and subsection (i)) shall not apply
to the expatriate, but
``(ii) in the case of property to which
this section would apply but for such election,
the expatriate shall be subject to tax under
this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not
apply to an individual unless the individual--
``(i) provides security for payment of tax
in such form and manner, and in such amount, as
the Secretary may require,
``(ii) consents to the waiver of any right
of the individual under any treaty of the
United States which would preclude assessment
or collection of any tax which may be imposed
by reason of this paragraph, and
``(iii) complies with such other
requirements as the Secretary may prescribe.
``(C) Election.--An election under subparagraph (A)
shall apply to all property to which this section would
apply but for the election and, once made, shall be
irrevocable. Such election shall also apply to property
the basis of which is determined in whole or in part by
reference to the property with respect to which the
election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as sold
by reason of subsection (a), the payment of the additional tax
attributable to such property shall be postponed until the due
date of the return for the taxable year in which such property
is disposed of (or, in the case of property disposed of in a
transaction in which gain is not recognized in whole or in
part, until such other date as the Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection (a)
with respect to all property to which subsection (a) applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return of
tax imposed by this chapter for the taxable year which includes
the date of death of the expatriate (or, if earlier, the time
that the security provided with respect to the property fails
to meet the requirements of paragraph (4), unless the taxpayer
corrects such failure within the time specified by the
Secretary).
``(4) Security.--
``(A) In general.--No election may be made under
paragraph (1) with respect to any property unless
adequate security is provided to the Secretary with
respect to such property.
``(B) Adequate security.--For purposes of
subparagraph (A), security with respect to any property
shall be treated as adequate security if--
``(i) it is a bond in an amount equal to
the deferred tax amount under paragraph (2) for
the property, or
``(ii) the taxpayer otherwise establishes
to the satisfaction of the Secretary that the
security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the waiver
of any right under any treaty of the United States which would
preclude assessment or collection of any tax imposed by reason
of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage
points' in subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the
United States and a citizen of another country
and, as of the expatriation date, continues to
be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the
United States (as defined in section
7701(b)(1)(A)(ii)) during the 5 taxable years
ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United
States citizenship occurs before such individual
attains age 18\1/2\, and
``(ii) the individual has been a resident of the
United States (as so defined) for not more than 5
taxable years before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any
United States real property interest (as defined in
section 897(c)(1)), other than stock of a United States
real property holding corporation which does not, on
the day before the expatriation date, meet the
requirements of section 897(c)(2).
``(B) Specified property.--Any property or interest
in property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on
the day before the expatriation date any interest in a
retirement plan to which this paragraph applies--
``(i) such interest shall not be treated as
sold for purposes of subsection (a)(1), but
``(ii) an amount equal to the present value
of the expatriate's nonforfeitable accrued
benefit shall be treated as having been
received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In
the case of any distribution on or after the
expatriation date to or on behalf of the covered
expatriate from a plan from which the expatriate was
treated as receiving a distribution under subparagraph
(A), the amount otherwise includible in gross income by
reason of the subsequent distribution shall be reduced
by the excess of the amount includible in gross income
under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by
plan.--For purposes of this title, a retirement plan to
which this paragraph applies, and any person acting on
the plan's behalf, shall treat any subsequent
distribution described in subparagraph (B) in the same
manner as such distribution would be treated without
regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply
to--
``(i) any qualified retirement plan (as
defined in section 4974(c)),
``(ii) an eligible deferred compensation
plan (as defined in section 457(b)) of an
eligible employer described in section
457(e)(1)(A), and
``(iii) to the extent provided in
regulations, any foreign pension plan or
similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States
who--
``(i) ceases to be a lawful permanent
resident of the United States (within the
meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a
resident of a foreign country under the
provisions of a tax treaty between the United
States and the foreign country and who does not
waive the benefits of such treaty applicable to
residents of the foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United
States citizenship, or
``(B) in the case of a long-term resident of the
United States, the date of the event described in
clause (i) or (ii) of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such
individual's United States nationality before a
diplomatic or consular officer of the United States
pursuant to paragraph (5) of section 349(a) of the
Immigration and Nationality Act (8 U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the
United States Department of State a signed statement of
voluntary relinquishment of United States nationality
confirming the performance of an act of expatriation
specified in paragraph (1), (2), (3), or (4) of section
349(a) of the Immigration and Nationality Act (8 U.S.C.
1481(a)(1)-(4)),
``(C) the date the United States Department of
State issues to the individual a certificate of loss of
nationality, or
``(D) the date a court of the United States cancels
a naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests in
Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having
sold such interest,
``(B) such interest shall be treated as a separate
share in the trust, and
``(C)(i) such separate share shall be treated as a
separate trust consisting of the assets allocable to
such share,
``(ii) the separate trust shall be treated as
having sold its assets on the day before the
expatriation date for their fair market value and as
having distributed all of its assets to the individual
as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for liabilities
of the trust allocable to an individual's share in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described
in paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a)
shall not apply, and
``(ii) in addition to any other tax imposed
by this title, there is hereby imposed on each
distribution with respect to such interest a
tax in the amount determined under subparagraph
(B).
``(B) Amount of tax.--The amount of tax under
subparagraph (A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by
section 1(e) for the taxable year which
includes the day before the expatriation date,
multiplied by the amount of the distribution,
or
``(ii) the balance in the deferred tax
account immediately before the distribution
determined without regard to any increases
under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of
subparagraph (B)(ii)--
``(i) Opening balance.--The opening balance
in a deferred tax account with respect to any
trust interest is an amount equal to the tax
which would have been imposed on the allocable
expatriation gain with respect to the trust
interest if such gain had been included in
gross income under subsection (a).
``(ii) Increase for interest.--The balance
in the deferred tax account shall be increased
by the amount of interest determined (on the
balance in the account at the time the interest
accrues), for periods after the 90th day after
the expatriation date, by using the rates and
method applicable under section 6621 for
underpayments of tax for such periods, except
that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3
percentage points' in subparagraph (B) thereof.
``(iii) Decrease for taxes previously
paid.--The balance in the tax deferred account
shall be reduced--
``(I) by the amount of taxes
imposed by subparagraph (A) on any
distribution to the person holding the
trust interest, and
``(II) in the case of a person
holding a nonvested interest, to the
extent provided in regulations, by the
amount of taxes imposed by subparagraph
(A) on distributions from the trust
with respect to nonvested interests not
held by such person.
``(D) Allocable expatriation gain.--For purposes of
this paragraph, the allocable expatriation gain with
respect to any beneficiary's interest in a trust is the
amount of gain which would be allocable to such
beneficiary's vested and nonvested interests in the
trust if the beneficiary held directly all assets
allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by
subparagraph (A)(ii) shall be deducted and
withheld by the trustees from the distribution
to which it relates.
``(ii) Exception where failure to waive
treaty rights.--If an amount may not be
deducted and withheld under clause (i) by
reason of the distributee failing to waive any
treaty right with respect to such
distribution--
``(I) the tax imposed by
subparagraph (A)(ii) shall be imposed
on the trust and each trustee shall be
personally liable for the amount of
such tax, and
``(II) any other beneficiary of the
trust shall be entitled to recover from
the distributee the amount of such tax
imposed on the other beneficiary.
``(F) Disposition.--If a trust ceases to be a
qualified trust at any time, a covered expatriate
disposes of an interest in a qualified trust, or a
covered expatriate holding an interest in a qualified
trust dies, then, in lieu of the tax imposed by
subparagraph (A)(ii), there is hereby imposed a tax
equal to the lesser of--
``(i) the tax determined under paragraph
(1) as if the day before the expatriation date
were the date of such cessation, disposition,
or death, whichever is applicable, or
``(ii) the balance in the tax deferred
account immediately before such date.
Such tax shall be imposed on the trust and each trustee
shall be personally liable for the amount of such tax
and any other beneficiary of the trust shall be
entitled to recover from the covered expatriate or the
estate the amount of such tax imposed on the other
beneficiary.
``(G) Definitions and special rules.--For purposes
of this paragraph--
``(i) Qualified trust.--The term `qualified
trust' means a trust which is described in
section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested
interest' means any interest which, as of the
day before the expatriation date, is vested in
the beneficiary.
``(iii) Nonvested interest.--The term
`nonvested interest' means, with respect to any
beneficiary, any interest in a trust which is
not a vested interest. Such interest shall be
determined by assuming the maximum exercise of
discretion in favor of the beneficiary and the
occurrence of all contingencies in favor of the
beneficiary.
``(iv) Adjustments.--The Secretary may
provide for such adjustments to the bases of
assets in a trust or a deferred tax account,
and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan
rules.--This subsection shall not apply to an
interest in a trust which is part of a
retirement plan to which subsection (d)(2)
applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For
purposes of paragraph (1), a beneficiary's interest in
a trust shall be based upon all relevant facts and
circumstances, including the terms of the trust
instrument and any letter of wishes or similar
document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this
section--
``(i) Constructive ownership.--If a
beneficiary of a trust is a corporation,
partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall
be deemed to be the trust beneficiaries for
purposes of this section.
``(ii) Taxpayer return position.--A
taxpayer shall clearly indicate on its income
tax return--
``(I) the methodology used to
determine that taxpayer's trust
interest under this section, and
``(II) if the taxpayer knows (or
has reason to know) that any other
beneficiary of such trust is using a
different methodology to determine such
beneficiary's trust interest under this
section.
``(g) Termination of Deferrals, Etc.--In the case of any covered
expatriate, notwithstanding any other provision of this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the expatriation
date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the unpaid
portion of such tax shall be due and payable at the time and in
the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any taxable
year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the extent
attributable to gain includible in gross income by reason of
this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results
in the deferral of any tax imposed by reason of
subsection (a), the deferred amount (including any
interest, additional amount, addition to tax,
assessable penalty, and costs attributable to the
deferred amount) shall be a lien in favor of the United
States on all property of the expatriate located in the
United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this
subsection, the deferred amount is the amount of the
increase in the covered expatriate's income tax which,
but for the election under subsection (a)(4) or (b),
would have occurred by reason of this section for the
taxable year including the expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this
section is satisfied or has become unenforceable by
reason of lapse of time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by
reason of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Inclusion in Income of Gifts and Bequests Received by United
States Citizens and Residents From Expatriates.--Section 102 (relating
to gifts, etc. not included in gross income) is amended by adding at
the end the following new subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude
from gross income the value of any property acquired by
gift, bequest, devise, or inheritance from a covered
expatriate after the expatriation date.
``(B) Determination of basis.--Notwithstanding
sections 1015 or 1022, the basis of any property
described in subparagraph (A) in the hands of the donee
or the person acquiring such property from the decedent
shall be equal to the fair market value of the property
at the time of the gift, bequest, devise, or
inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property if
either--
``(A) the gift, bequest, devise, or inheritance
is--
``(i) shown on a timely filed return of tax
imposed by chapter 12 as a taxable gift by the
covered expatriate, or
``(ii) included in the gross estate of the
covered expatriate for purposes of chapter 11
and shown on a timely filed return of tax
imposed by chapter 11 of the estate of the
covered expatriate, or
``(B) no such return was timely filed but no such
return would have been required to be filed even if the
covered expatriate were a citizen or long-term resident
of the United States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section 877A
shall have the same meaning as when used in section 877A.''.
(c) Definition of Termination of United States Citizenship.--
Section 7701(a) is amended by adding at the end the following new
paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to
be treated as a United States citizen before the date
on which the individual's citizenship is treated as
relinquished under section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed
by the Secretary, subparagraph (A) shall not apply to
an individual who became at birth a citizen of the
United States and a citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with
expatriation revenue provisions.--Any alien who is a
former citizen of the United States who relinquishes
United States citizenship (within the meaning of
section 877A(e)(3) of the Internal Revenue Code of
1986) and who is not in compliance with section 877A of
such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to
disclosure of returns and return information for
purposes other than tax administration) is amended by
adding at the end the following new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each
place it appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an expatriate
(as defined in section 877A(e)) whose expatriation date (as so defined)
occurs on or after the date of the enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any expatriate
subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply
to any expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart A of
part II of subchapter N of chapter 1 is amended by inserting after the
item relating to section 877 the following new item:
``Sec. 877A. Tax responsibilities of expatriation''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal Revenue
Code of 1986, as added by this section) whose expatriation date
(as so defined) occurs on or after the date of the enactment of
this Act.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after the date of the
enactment of this Act, from an individual or the estate of an
individual whose expatriation date (as so defined) occurs after
such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day after
the date of the enactment of this Act.
SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED UNDER
NONQUALIFIED DEFERRED COMPENSATION ARRANGEMENTS.
(a) In General.--Section 409A(a) of the Internal Revenue Code of
1986 (relating to inclusion of gross income under nonqualified deferred
compensation plans) is amended--
(1) by striking ``and (4)'' in subclause (I) of paragraph
(1)(A)(i) and inserting ``(4), and (5)'', and
(2) by adding at the end the following new paragraph:
``(5) Annual limitation on aggregate deferred amounts.--
``(A) Limitation.--The requirements of this
paragraph are met if the plan provides that the
aggregate amount of compensation which is deferred for
any taxable year with respect to a participant under
the plan may not exceed the applicable dollar amount
for the taxable year.
``(B) Inclusion of future earnings.--If an amount
is includible under paragraph (1) in the gross income
of a participant for any taxable year by reason of any
failure to meet the requirements of this paragraph, any
income (whether actual or notional) for any subsequent
taxable year shall be included in gross income under
paragraph (1)(A) in such subsequent taxable year to the
extent such income--
``(i) is attributable to compensation (or
income attributable to such compensation)
required to be included in gross income by
reason of such failure (including by reason of
this subparagraph), and
``(ii) is not subject to a substantial risk
of forfeiture and has not been previously
included in gross income.
``(C) Aggregation rule.--For purposes of this
paragraph, all nonqualified deferred compensation plans
maintained by all employers treated as a single
employer under subsection (d)(6) shall be treated as 1
plan.
``(D) Applicable dollar amount.--For purposes of
this paragraph--
``(i) In general.--The term `applicable
dollar amount' means, with respect to any
participant, the lesser of--
``(I) the average annual
compensation which was payable during
the base period to the participant by
the employer maintaining the
nonqualified deferred compensation plan
(or any predecessor of the employer)
and which was includible in the
participant's gross income for taxable
years in the base period, or
``(II) $1,000,000.
``(ii) Base period.--
``(I) In general.--The term `base
period' means, with respect to any
computation year, the 5-taxable year
period ending with the taxable year
preceding the computation year.
``(II) Elections made before
computation year.--If, before the
beginning of the computation year, an
election described in paragraph (4)(B)
is made by the participant to have
compensation for services performed in
the computation year deferred under a
nonqualified deferred compensation
plan, the base period shall be the 5-
taxable year period ending with the
taxable year preceding the taxable year
in which the election is made.
``(III) Computation year.--For
purposes of this clause, the term
`computation year' means any taxable
year of the participant for which the
limitation under subparagraph (A) is
being determined.
``(IV) Special rule for employees
of less than 5 years.--If a participant
did not perform services for the
employer maintaining the nonqualified
deferred compensation plan (or any
predecessor of the employer) during the
entire 5-taxable year period referred
to in subparagraph (A) or (B), only the
portion of such period during which the
participant performed such services
shall be taken into account.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006,
except that--
(A) the amendments shall only apply to amounts
deferred after December 31, 2006 (and to earnings on
such amounts), and
(B) taxable years beginning on or before December
31, 2006, shall be taken into account in determining
the average annual compensation of a participant during
any base period for purposes of section 409A(a)(5)(D)
of the Internal Revenue Code of 1986 (as added by such
amendments).
(2) Guidance relating to certain existing arrangements.--
Not later than 60 days after the date of the enactment of this
Act, the Secretary of the Treasury shall issue guidance
providing a limited period during which a nonqualified deferred
compensation plan adopted before December 31, 2006, may,
without violating the requirements of section 409A(a) of such
Code, be amended--
(A) to provide that a participant may, no later
than December 31, 2007, cancel or modify an outstanding
deferral election with regard to all or a portion of
amounts deferred after December 31, 2006, to the extent
necessary for the plan to meet the requirements of
section 409A(a)(5) of such Code (as added by the
amendments made by this section), but only if amounts
subject to the cancellation or modification are, to the
extent not previously included in gross income,
includible in income of the participant when no longer
subject to substantial risk of forfeiture, and
(B) to conform to the requirements of section
409A(a)(5) of such Code (as added by the amendments
made by this section) with regard to amounts deferred
after December 31, 2006.
SEC. 537. MODIFICATION OF CRIMINAL PENALTIES FOR WILLFUL FAILURES
INVOLVING TAX PAYMENTS AND FILING REQUIREMENTS.
(a) Increase in Penalty for Attempt To Evade or Defeat Tax.--
Section 7201 (relating to attempt to evade or defeat tax) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``5 years'' and inserting ``10 years''.
(b) Modification of Penalties for Willful Failure To File Return,
Supply Information, or Pay Tax.--
(1) In general.--Section 7203 (relating to willful failure
to file return, supply information, or pay tax) is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and
inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting
``$50,000'',
(B) in the third sentence, by striking ``section''
and inserting ``subsection'', and
(C) by adding at the end the following new
subsection:
``(b) Aggravated Failure To File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$250,000 ($500,000' for `$50,000 ($100,000',
and
``(C) `5 years' for `1 year'.
``(2) Failure described.--A failure described in this
paragraph is--
``(A) a failure to make a return described in
subsection (a) for any 3 taxable years occurring during
any period of 5 consecutive taxable years if the
aggregate tax liability for such period is not less
than $50,000, or
``(B) a failure to make a return if the tax
liability giving rise to the requirement to make such
return is attributable to an activity which is a felony
under any State or Federal law.''.
(2) Penalty may be applied in addition to other
penalties.--Section 7204 (relating to fraudulent statement or
failure to make statement to employees) is amended by striking
``the penalty provided in section 6674'' and inserting ``the
penalties provided in sections 6674 and 7203(b)''.
(c) Fraud and False Statements.--Section 7206 (relating to fraud
and false statements) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``3 years'' and inserting ``5 years''.
(d) Increase in Monetary Limitation for Underpayment or Overpayment
of Tax Due to Fraud.--Section 7206 (relating to fraud and false
statements), as amended by subsection (a)(3), is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any underpayment
(as defined in section 6664(a)) or overpayment (as defined in section
6401(a)) of tax required to be shown on a return is attributable to
fraudulent action described in subsection (a), the applicable dollar
amount under subsection (a) shall in no event be less than an amount
equal to such portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so attributable.''.
(e) Effective Date.--The amendments made by this section shall
apply to actions, and failures to act, occurring after the date of the
enactment of this Act.
SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST ON
UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE FINANCIAL
ARRANGEMENTS.
(a) Determination of Penalty.--
(1) In general.--Notwithstanding any other provision of
law, in the case of an applicable taxpayer--
(A) the determination as to whether any interest or
applicable penalty is to be imposed with respect to any
arrangement described in paragraph (2), or to any
underpayment of Federal income tax attributable to
items arising in connection with any such arrangement,
shall be made without regard to the rules of
subsections (b), (c), and (d) of section 6664 of the
Internal Revenue Code of 1986, and
(B) if any such interest or applicable penalty is
imposed, the amount of such interest or penalty shall
be equal to twice that determined without regard to
this section.
(2) Applicable taxpayer.--For purposes of this subsection--
(A) In general.--The term ``applicable taxpayer''
means a taxpayer which--
(i) has underreported its United States
income tax liability with respect to any item
which directly or indirectly involves--
(I) any financial arrangement which
in any manner relies on the use of
offshore payment mechanisms (including
credit, debit, or charge cards) issued
by banks or other entities in foreign
jurisdictions, or
(II) any offshore financial
arrangement (including any arrangement
with foreign banks, financial
institutions, corporations,
partnerships, trusts, or other
entities), and
(ii) has neither signed a closing agreement
pursuant to the Voluntary Offshore Compliance
Initiative established by the Department of the
Treasury under Revenue Procedure 2003-11 nor
voluntarily disclosed its participation in such
arrangement by notifying the Internal Revenue
Service of such arrangement prior to the issue
being raised by the Internal Revenue Service
during an examination.
(B) Authority to waive.--The Secretary of the
Treasury or the Secretary's delegate may waive the
application of paragraph (1) to any taxpayer if the
Secretary or the Secretary's delegate determines that
the use of such offshore payment mechanisms is
incidental to the transaction and, in addition, in the
case of a trade or business, such use is conducted in
the ordinary course of the type of trade or business of
the taxpayer.
(C) Issues raised.--For purposes of subparagraph
(A)(ii), an item shall be treated as an issue raised
during an examination if the individual examining the
return--
(i) communicates to the taxpayer knowledge
about the specific item, or
(ii) has made a request to the taxpayer for
information and the taxpayer could not make a
complete response to that request without
giving the examiner knowledge of the specific
item.
(b) Applicable Penalty.--For purposes of this section, the term
``applicable penalty'' means any penalty, addition to tax, or fine
imposed under chapter 68 of the Internal Revenue Code of 1986.
(c) Effective Date.--The provisions of this section shall apply to
interest, penalties, additions to tax, and fines with respect to any
taxable year if, as of the date of the enactment of this Act, the
assessment of any tax, penalty, or interest with respect to such
taxable year is not prevented by the operation of any law or rule of
law.
SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY ORDERS.
(a) In General.--Section 6657 (relating to bad checks) is amended--
(1) by striking ``$750'' and inserting ``$1,250'', and
(2) by striking ``$15'' and inserting ``$25''.
(b) Effective Date.--The amendments made by this section apply to
checks or money orders received after the date of the enactment of this
Act.
SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT INSTRUMENTS.
(a) In General.--Section 1275(d) (relating to regulation authority)
is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'', and
(2) by adding at the end the following new paragraph:
``(2) Treatment of contingent payment convertible debt.--
``(A) In general.--In the case of a debt instrument
which--
``(i) is convertible into stock of the
issuing corporation, into stock or debt of a
related party (within the meaning of section
267(b) or 707(b)(1)), or into cash or other
property in an amount equal to the approximate
value of such stock or debt, and
``(ii) provides for 1 or more contingent
payments,
any regulations which require original issue discount
to be determined by reference to the comparable yield
of a fixed-rate debt instrument shall be applied as if
the regulations require that such comparable yield be
determined by reference to a fixed-rate debt instrument
which is convertible into stock.
``(B) Special rule.--For purposes of subparagraph
(A), the comparable yield shall be determined without
taking into account the yield resulting from the
conversion of a debt instrument into stock.''.
(b) Cross Reference.--Section 163(e)(6) (relating to cross
references) is amended by adding at the end the following:
``For the treatment of contingent payment
convertible debt, see section 1275(d)(2).''.
(c) Effective Date.--The amendments made by this section shall
apply to debt instruments issued on or after the date of the enactment
of this Act.
SEC. 541. EXTENSION OF IRS USER FEES.
Subsection (c) of section 7528 (relating to Internal Revenue
Service user fees) is amended by striking ``September 30, 2014'' and
inserting ``September 30, 2016''.
SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR
EMPLOYMENT TAX LIABILITIES.
(a) In General.--Section 6330(f) (relating to jeopardy and State
refund collection) is amended--
(1) by striking ``; or'' at the end of paragraph (1) and
inserting a comma,
(2) by adding ``or'' at the end of paragraph (2), and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has served a levy in connection with
the collection of taxes under chapter 21, 22, 23, or 24,''.
(b) Effective Date.--The amendments made by this section shall
apply to levies issued on or after the date that is 120 days after the
date of the enactment of this Act.
SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.
(a) Modification of Tax Threshold for Awards.--Subparagraph (B) of
section 7623(b)(5), as added by the Tax Relief and Health Care Act of
2006, is amended by striking ``$2,000,000'' and inserting ``$20,000''.
(b) Whistleblower Office.--
(1) In general.--Section 7623 is amended by adding at the
end the following new subsections:
``(c) Whistleblower Office.--
``(1) In general.--There is established in the Internal
Revenue Service an office to be known as the `Whistleblower
Office' which--
``(A) shall at all times operate at the direction
of the Commissioner and coordinate and consult with
other divisions in the Internal Revenue Service as
directed by the Commissioner,
``(B) shall analyze information received from any
individual described in subsection (b) and either
investigate the matter itself or assign it to the
appropriate Internal Revenue Service office,
``(C) shall monitor any action taken with respect
to such matter,
``(D) shall inform such individual that it has
accepted the individual's information for further
review,
``(E) may require such individual and any legal
representative of such individual to not disclose any
information so provided,
``(F) in its sole discretion, may ask for
additional assistance from such individual or any legal
representative of such individual, and
``(G) shall determine the amount to be awarded to
such individual under subsection (b).
``(2) Funding for office.--There is authorized to be
appropriated $10,000,000 for each fiscal year for the
Whistleblower Office. These funds shall be used to maintain the
Whistleblower Office and also to reimburse other Internal
Revenue Service offices for related costs, such as costs of
investigation and collection.
``(3) Request for assistance.--
``(A) In general.--Any assistance requested under
paragraph (1)(F) shall be under the direction and
control of the Whistleblower Office or the office
assigned to investigate the matter under subparagraph
(A). No individual or legal representative whose
assistance is so requested may by reason of such
request represent himself or herself as an employee of
the Federal Government.
``(B) Funding of assistance.--From the amounts
available for expenditure under subsection (b), the
Whistleblower Office may, with the agreement of the
individual described in subsection (b), reimburse the
costs incurred by any legal representative of such
individual in providing assistance described in
subparagraph (A).
``(d) Reports.--The Secretary shall each year conduct a study and
report to Congress on the use of this section, including--
``(1) an analysis of the use of this section during the
preceding year and the results of such use, and
``(2) any legislative or administrative recommendations
regarding the provisions of this section and its
application.''.
(2) Conforming amendment.--Section 406 of division A of the
Tax Relief and Health Care Act of 2006 is amended by striking
subsections (b) and (c).
(3) Report on implementation.--Not later than 6 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall submit to Congress a report on the
establishment and operation of the Whistleblower Office under
section 7623(c) of the Internal Revenue Code of 1986.
(c) Publicity of Award Appeals.--Paragraph (4) of section 7623(b),
as added by the Tax Relief and Health Care Act of 2006, is amended to
read as follows:
``(4) Appeal of award determination.--
``(A) In general.--Any determination regarding an
award under paragraph (1), (2), or (3) may, within 30
days of such determination, be appealed to the Tax
Court (and the Tax Court shall have jurisdiction with
respect to such matter).
``(B) Publicity of appeals.--Notwithstanding
sections 7458 and 7461, the Tax Court may, in order to
preserve the anonymity, privacy, or confidentiality of
any person under this subsection, provide by rules
adopted under section 7453 that portions of filings,
hearings, testimony, evidence, and reports in
connection with proceedings under this subsection may
be closed to the public or to inspection by the
public.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to information
provided on or after the date of the enactment of this Act.
(2) Publicity of award appeals.--The amendment made by
subsection (c) shall take effect as if included in the
amendments made by section 406 of the Tax Relief and Health
Care Act of 2006.
SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY DENIAL OF
DEDUCTION FOR EXCESSIVE EMPLOYEE REMUNERATION.
(a) In General.--Paragraph (3) of section 162(m) is amended to read
as follows:
``(3) Covered employee.--For purposes of this subsection,
the term `covered employee' means, with respect to any taxpayer
for any taxable year, an individual who--
``(A) was the chief executive officer of the
taxpayer, or an individual acting in such a capacity,
at any time during the taxable year,
``(B) is 1 of the 4 highest compensated officers of
the taxpayer for the taxable year (other than the
individual described in subparagraph (A)), or
``(C) was a covered employee of the taxpayer (or
any predecessor) for any preceding taxable year
beginning after December 31, 2006.
``In the case of an individual who was a covered employee
for any taxable year beginning after December 31, 2006, the
term `covered employee' shall include a beneficiary of such
employee with respect to any remuneration for services
performed by such employee as a covered employee (whether or
not such services are performed during the taxable year in
which the remuneration is paid).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2006.
SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS
TAXED AS IF PARENT'S INCOME.
(a) In General.--Subparagraph (A) of section 1(g)(2) (relating to
child to whom subsection applies) is amended to read as follows:
``(A) such child--
``(i) has not attained age 18 before the
close of the taxable year, or
``(ii)(I) has attained age 18 before the
close of the taxable year and meets the age
requirements of section 152(c)(3) (determined
without regard to subparagraph (B) thereof),
and
``(II) whose earned income (as defined in
section 911(d)(2)) for such taxable year does
not exceed one-half of the amount of the
individual's support (within the meaning of
section 152(c)(1)(D) after the application of
section 152(f)(5) (without regard to
subparagraph (A) thereof) for such taxable
year,''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Section 6721(a)(1) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$250,000'' and inserting
``$3,000,000''.
(2) Reduction where correction in specified period.--
(A) Correction within 30 days.--Section 6721(b)(1)
is amended--
(i) by striking ``$15'' and inserting
``$50'',
(ii) by striking ``$50'' and inserting
``$250'', and
(iii) by striking ``$75,000'' and inserting
``$500,000''.
(B) Failures corrected on or before august 1.--
Section 6721(b)(2) is amended--
(i) by striking ``$30'' and inserting
``$100'',
(ii) by striking ``$50'' and inserting
``$250'', and
(iii) by striking ``$150,000'' and
inserting ``$1,500,000''.
(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting
``$1,000,000'', and
(ii) by striking ``$250,000'' and inserting
``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting
``$175,000'', and
(ii) by striking ``$75,000'' and inserting
``$500,000'', and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting
``$500,000'', and
(ii) by striking ``$150,000'' and inserting
``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and
inserting ``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A)
and inserting ``$3,000,000''.
(b) Failure to Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting
``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and
inserting ``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A)
and inserting ``$1,000,000''.
(c) Failure To Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to information returns required to be filed on or
after January 1, 2008.
SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE ORGANIZATIONS.
(a) In General.--The first sentence of section 6011(e)(2) is
amended to read as follows: ``In prescribing regulations under
paragraph (1), the Secretary shall take into account (among other
relevant factors) the ability of the taxpayer to comply at reasonable
cost with the requirements of such regulations.''.
(b) Conforming Amendment.--Section 6724 is amended by striking
subsection (c).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending on or after December 31, 2008.
SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN NATIONAL DIRECTORY
OF NEW HIRES FOR TAX ADMINISTRATION PURPOSES.
(a) In General.--Paragraph (3) of section 453(j) of the Social
Security Act (42 U.S.C. 653(j)) is amended to read as follows:
``(3) Administration of federal tax laws.--The Secretary of
the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
the Internal Revenue Code of 1986.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMATION TO FEDERAL BUREAU
OF PRISONS.
(a) Disclosure.--
(1) In general.--Subsection (l) of section 6103 (relating
to disclosure of returns and return information for purposes
other than tax administration) is amended by adding at the end
the following new paragraph:
``(22) Disclosure of return information of prisoners to
federal bureau of prisons.--
``(A) In general.--Under such procedures as the
Secretary may prescribe, the Secretary may disclose
return information with respect to persons incarcerated
in Federal prisons whom the Secretary believes filed or
facilitated the filing of false or fraudulent returns
to the head of the Federal Bureau of Prisons if the
Secretary determines that such disclosure is necessary
to permit effective tax administration.
``(B) Disclosure by agency to employees.--The head
of the Federal Bureau of Prisons may redisclose
information received under subparagraph (A)--
``(i) only to those officers and employees
of the Bureau who are personally and directly
engaged in taking administrative actions to
address violations of administrative rules and
regulations of the prison facility, and
``(ii) solely for the purposes described in
subparagraph (C).
``(C) Restriction on use of disclosed
information.--Return information disclosed under this
paragraph may be used only for the purposes of--
``(i) preventing the filing of false or
fraudulent returns; and
``(ii) taking administrative actions
against individuals who have filed or attempted
to file false or fraudulent returns.''.
(2) Procedures and record keeping related to disclosure.--
Subsection (p)(4) of section 6103 is amended--
(A) by striking ``(14), or (17)'' in the matter
before subparagraph (A) and inserting ``(14), (17), or
(22)'', and
(B) by striking ``(9), or (16)'' in subparagraph
(F)(i) and inserting ``(9), (16), or (22)''.
(3) Evaluation by treasury inspector general for tax
administration.--Paragraph (3) of section 7803(d) is amended by
striking ``and'' at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ``;
and'', and by adding at the end the following new subparagraph:
``(C) not later than 3 years after the date of the
enactment of section 6103(l)(22), submit a written
report to Congress on the implementation of such
section.''.
(b) Annual Reports.--
(1) In general.--The Secretary of the Treasury shall submit
to Congress and make publicly available an annual report on the
filing of false and fraudulent returns by individuals
incarcerated in Federal and State prisons.
(2) Contents of report.--The report submitted under
paragraph (1) shall contain statistics on the number of false
or fraudulent returns associated with each Federal and State
prison and such other information that the Secretary determines
is appropriate.
(3) Exchange of information.--For the purpose of gathering
information necessary for the reports required under paragraph
(1), the Secretary of the Treasury shall enter into agreements
with the head of the Federal Bureau of Prisons and the heads of
State agencies charged with responsibility for administration
of State prisons under which the head of the Bureau or Agency
provides to the Secretary not less frequently than annually the
names and other identifying information of prisoners
incarcerated at each facility administered by the Bureau or
Agency.
(c) Effective Date.--The amendments made by this section shall
apply to disclosures on or after January 1, 2008.
SEC. 550. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN PREPARERS.
(a) Application of Return Preparer Penalties to All Tax Returns.--
(1) Definition of tax return preparer.--Paragraph (36) of
section 7701(a) (relating to income tax preparer) is amended--
(A) by striking ``income'' each place it appears in
the heading and the text, and
(B) in subparagraph (A), by striking ``subtitle A''
each place it appears and inserting ``this title''.
(2) Conforming amendments.--
(A)(i) Section 6060 is amended by striking ``income
tax return preparers'' in the heading and inserting
``tax return preparers''.
(ii) Section 6060(a) is amended--
(I) by striking ``an income tax return
preparer'' each place it appears and inserting
``a tax return preparer'',
(II) by striking ``each income tax return
preparer'' and inserting ``each tax return
preparer'', and
(III) by striking ``another income tax
return preparer'' and inserting ``another tax
return preparer''.
(iii) The item relating to section 6060 in the
table of sections for subpart F of part III of
subchapter A of chapter 61 is amended by striking
``income tax return preparers'' and inserting ``tax
return preparers''.
(iv) Subpart F of part III of subchapter A of
chapter 61 is amended by striking ``Income Tax Return
Preparers'' in the heading and inserting ``Tax Return
Preparers''.
(v) The item relating to subpart F in the table of
subparts for part III of subchapter A of chapter 61 is
amended by striking ``income tax return preparers'' and
inserting ``tax return preparers''.
(B) Section 6103(k)(5) is amended--
(i) by striking ``income tax return
preparer'' each place it appears and inserting
``tax return preparer'', and
(ii) by striking ``income tax return
preparers'' each place it appears and inserting
``tax return preparers''.
(C)(i) Section 6107 is amended--
(I) by striking ``income tax return
preparer'' in the heading and inserting ``tax
return preparer'',
(II) by striking ``an income tax return
preparer'' each place it appears in subsections
(a) and (b) and inserting ``a tax return
preparer'',
(III) by striking ``Income Tax Return
Preparer'' in the heading for subsection (b)
and inserting ``Tax Return Preparer'', and
(IV) in subsection (c), by striking
``income tax return preparers'' and inserting
``tax return preparers''.
(ii) The item relating to section 6107 in the table
of sections for subchapter B of chapter 61 is amended
by striking ``Income tax return preparer'' and
inserting ``Tax return preparer''.
(D) Section 6109(a)(4) is amended--
(i) by striking ``an income tax return
preparer'' and inserting ``a tax return
preparer'', and
(ii) by striking ``income return preparer''
in the heading and inserting ``tax return
preparer''.
(E) Section 6503(k)(4) is amended by striking
``Income tax return preparers'' and inserting ``Tax
return preparers''.
(F)(i) Section 6694 is amended--
(I) by striking ``income tax return
preparer'' in the heading and inserting ``tax
return preparer'',
(II) by striking ``an income tax return
preparer'' each place it appears and inserting
``a tax return preparer'',
(III) in subsection (c)(2), by striking
``the income tax return preparer'' and
inserting ``the tax return preparer'',
(IV) in subsection (e), by striking
``subtitle A'' and inserting ``this title'',
and
(V) in subsection (f), by striking ``income
tax return preparer'' and inserting ``tax
return preparer''.
(ii) The item relating to section 6694 in the table
of sections for part I of subchapter B of chapter 68 is
amended by striking ``income tax return preparer'' and
inserting ``tax return preparer''.
(G)(i) Section 6695 is amended--
(I) by striking ``income'' in the heading,
and
(II) by striking ``an income tax return
preparer'' each place it appears and inserting
``a tax return preparer''.
(ii) Section 6695(f) is amended--
(I) by striking ``subtitle A'' and
inserting ``this title'', and
(II) by striking ``the income tax return
preparer'' and inserting ``the tax return
preparer''.
(iii) The item relating to section 6695 in the
table of sections for part I of subchapter B of chapter
68 is amended by striking ``income''.
(H) Section 6696(e) is amended by striking
``subtitle A'' each place it appears and inserting
``this title''.
(I)(i) Section 7407 is amended--
(I) by striking ``income tax return
preparers'' in the heading and inserting ``tax
return preparers'',
(II) by striking ``an income tax return
preparer'' each place it appears and inserting
``a tax return preparer'',
(III) by striking ``income tax preparer''
both places it appears in subsection (a) and
inserting ``tax return preparer'', and
(IV) by striking ``income tax return'' in
subsection (a) and inserting ``tax return''.
(ii) The item relating to section 7407 in the table
of sections for subchapter A of chapter 76 is amended
by striking ``income tax return preparers'' and
inserting ``tax return preparers''.
(J)(i) Section 7427 is amended--
(I) by striking ``income tax return
preparers'' in the heading and inserting ``tax
return preparers'', and
(II) by striking ``an income tax return
preparer'' and inserting ``a tax return
preparer''.
(ii) The item relating to section 7427 in the table
of sections for subchapter B of chapter 76 is amended
to read as follows:
``Sec. 7427. Tax return preparers.''.
(b) Modification of Penalty for Understatement of Taxpayer's
Liability by Tax Return Preparer.--Subsections (a) and (b) of section
6694 are amended to read as follows:
``(a) Understatement Due to Unreasonable Positions.--
``(1) In general.--Any tax return preparer who prepares any
return or claim for refund with respect to which any part of an
understatement of liability is due to a position described in
paragraph (2) shall pay a penalty with respect to each such
return or claim in an amount equal to the greater of--
``(A) $1,000, or
``(B) 50 percent of the income derived (or to be
derived) by the tax return preparer with respect to the
return or claim.
``(2) Unreasonable position.--A position is described in
this paragraph if--
``(A) the tax return preparer knew (or reasonably
should have known) of the position,
``(B) there was not a reasonable belief that the
position would more likely than not be sustained on its
merits, and
``(C)(i) the position was not disclosed as provided
in section 6662(d)(2)(B)(ii), or
``(ii) there was no reasonable basis for the
position.
``(3) Reasonable cause exception.--No penalty shall be
imposed under this subsection if it is shown that there is
reasonable cause for the understatement and the tax return
preparer acted in good faith.
``(b) Understatement Due to Willful or Reckless Conduct.--
``(1) In general.--Any tax return preparer who prepares any
return or claim for refund with respect to which any part of an
understatement of liability is due to a conduct described in
paragraph (2) shall pay a penalty with respect to each such
return or claim in an amount equal to the greater of--
``(A) $5,000, or
``(B) 50 percent of the income derived (or to be
derived) by the tax return preparer with respect to the
return or claim.
``(2) Willful or reckless conduct.--Conduct described in
this paragraph is conduct by the tax return preparer which is--
``(A) a willful attempt in any manner to understate
the liability for tax on the return or claim, or
``(B) a reckless or intentional disregard of rules
or regulations.
``(3) Reduction in penalty.--The amount of any penalty
payable by any person by reason of this subsection for any
return or claim for refund shall be reduced by the amount of
the penalty paid by such person by reason of subsection (a).''.
(c) Effective Date.--The amendments made by this section shall
apply to returns prepared after the date of the enactment of this Act.
SEC. 551. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.
(a) In General.--Part I of subchapter B of chapter 68 (relating to
assessable penalties) is amended by inserting after section 6675 the
following new section:
``SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT.
``(a) Civil Penalty.--If a claim for refund or credit with respect
to income tax (other than a claim for a refund or credit relating to
the earned income credit under section 32) is made for an excessive
amount, unless it is shown that the claim for such excessive amount has
a reasonable basis, the person making such claim shall be liable for a
penalty in an amount equal to 20 percent of the excessive amount.
``(b) Excessive Amount.--For purposes of this section, the term
`excessive amount' means in the case of any person the amount by which
the amount of the claim for refund or credit for any taxable year
exceeds the amount of such claim allowable under this title for such
taxable year.
``(c) Coordination With Other Penalties.--This section shall not
apply to any portion of the excessive amount of a claim for refund or
credit on which a penalty is imposed under part II of subchapter A of
chapter 68.''.
(b) Conforming Amendment.--The table of sections for part I of
subchapter B of chapter 68 is amended by inserting after the item
relating to section 6675 the following new item:
``Sec. 6676. Erroneous claim for refund or credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to any claim--
(1) filed or submitted after the date of the enactment of
this Act, or
(2) filed or submitted prior to such date but not withdrawn
before the date which is 30 days after such date of enactment.
SEC. 552. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.
(a) In General.--Paragraphs (1)(A) and (3)(A) of section 6404(g)
are each amended by striking ``18-month period'' and inserting ``36-
month period''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to notices provided
by the Secretary of the Treasury, or his delegate after the
date which is 6 months after the date of the enactment of this
Act.
(2) Exception for certain taxpayers.--The amendments made
by this section shall not apply to any taxpayer with respect to
whom a suspension of any interest, penalty, addition to tax, or
other amount is in effect on the date which is 6 months after
the date of the enactment of this Act.
SEC. 553. ADDITIONAL REASONS FOR SECRETARY TO TERMINATE INSTALLMENT
AGREEMENTS.
(a) In General.--Section 6159(b)(4) (relating to failure to pay an
installment or any other tax liability when due or to provide requested
financial information) is amended by striking ``or'' at the end of
subparagraph (B), by redesignating subparagraph (C) as subparagraph
(E), and by inserting after subparagraph (B) the following new
subparagraphs:
``(C) to make a Federal tax deposit under section
6302 at the time such deposit is required to be made,
``(D) to file a return of tax imposed under this
title by its due date (including extensions), or''.
(b) Conforming Amendment.--The heading for paragraph (4) of section
6159(b) is amended by striking ``Failure to pay an installment or any
other tax liability when due or to provide requested financial
information'' and inserting ``Failure to make payments or deposits or
file returns when due or to provide requested financial information''.
(c) Effective Date.--The amendments made by this section shall
apply to failures occurring on or after the date of the enactment of
this Act.
SEC. 554. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-COMPROMISE.
(a) In General.--Section 7122(b) (relating to record) is amended by
striking ``Whenever a compromise'' and all that follows through ``his
delegate, with his reasons therefor'' and inserting ``If the Secretary
determines that an opinion of the General Counsel for the Department of
the Treasury, or the Counsel's delegate, is required with respect to a
compromise, there shall be placed on file in the office of the
Secretary such opinion, with the reasons therefor''.
(b) Conforming Amendments.--Section 7122(b) is amended by striking
the second and third sentences.
(c) Effective Date.--The amendments made by this section shall
apply to offers-in-compromise submitted or pending on or after the date
of the enactment of this Act.
SEC. 555. AUTHORIZATION FOR FINANCIAL MANAGEMENT SERVICE RETENTION OF
TRANSACTION FEES FROM LEVIED AMOUNTS.
(a) In General.--Subsection (h) of section 6331 (relating to
continuing levy on certain payments) is amended by adding at the end
the following new paragraph:
``(4) Imposition of financial management services
transaction fees.--If the Secretary approves a levy under this
subsection, the Secretary may impose on the taxpayer a
transaction fee sufficient to cover the full cost of
implementing the levy under this subsection. Such fee--
``(A) shall be treated as an expense under section
6341,
``(B) may be collected through a levy under this
subsection, and
``(C) shall be in addition to the amount of tax
liability with respect to which such levy was
approved.''.
(b) Retention of Fees by Financial Management Service.--The
Financial Management Service may retain the amount of any transaction
fee imposed under section 6331(h)(4) of the Internal Revenue Code of
1986. Any amount retained by the Financial Management Service under
that section shall be deposited into the account of the Department of
the Treasury under section 3711(g)(7) of title 31, United States Code.
(c) Effective Date.--The amendment made by this section shall apply
to amounts levied after the date of the enactment of this Act.
SEC. 556. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application of
section) is amended by striking ``2007'' both places it appears and
inserting ``2008''.
SEC. 557. INCREASE IN PENALTY EXCISE TAXES ON THE POLITICAL AND EXCESS
LOBBYING ACTIVITIES OF SECTION 501(C)(3) ORGANIZATIONS.
(a) Taxes on Disqualifying Lobbying Expenditures of Certain
Organizations.--
(1) In general.--Section 4912(a) (relating to tax on
organization) is amended by striking ``5 percent'' and
inserting ``10 percent''.
(2) Tax on management.--Section 4912(b) is amended by
striking ``5 percent'' and inserting ``10 percent''.
(b) Taxes on Political Expenditures of Section 501(c)(3)
Organizations.--
(1) In general.--Section 4955(a) (relating to initial
taxes) is amended--
(A) in paragraph (1), by striking ``10 percent''
and inserting ``20 percent'', and
(B) in paragraph (2), by striking ``2\1/2\
percent'' and inserting ``5 percent''.
(2) Increased limitation for managers.--Section 4955(c)(2)
is amended--
(A) by striking ``$5,000'' and inserting
``$10,000'', and
(B) by striking ``$10,000'' and inserting
``$20,000''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 558. INCREASED PENALTY FOR FAILURE TO FILE FOR EXEMPT
ORGANIZATIONS.
(a) In General.--Subparagraph (A) of section 6652(c)(1) (relating
to annual returns under section 6033(a)(1) or 6012(a)(6)) is amended by
adding at the end the following new sentence: ``In the case of an
organization having gross receipts exceeding $25,000,000 for any year,
with respect to the return so required, the first sentence of this
subparagraph shall be applied by substituting `$250' for `$20' and, in
lieu of applying the second sentence of this subparagraph, the maximum
penalty under this subparagraph shall not exceed $125,000.''.
(b) Conforming Amendment.--The third sentence of section
6652(c)(1)(A) is amended by inserting ``but not exceeding $25,000,000''
after ``$1,000,000''.
(c) Effective Date.--The amendments made by this section shall
apply to returns required to be filed on or after January 1, 2008.
SEC. 559. PENALTIES FOR FAILURE TO FILE CERTAIN RETURNS ELECTRONICALLY.
(a) In General.--Part I of subchapter A of chapter 68 (relating to
additions to the tax, additional amounts, and assessable penalties) is
amended by inserting after section 6652 the following new section:
``SEC. 6652A. FAILURE TO FILE CERTAIN RETURNS ELECTRONICALLY.
``(a) In General.--If a person fails to file a return described in
section 6651 or 6652(c)(1) in electronic form as required under section
6011(e)--
``(1) such failure shall be treated as a failure to file
such return (even if filed in a form other than electronic
form), and
``(2) the penalty imposed under section 6651 or 6652(c),
whichever is appropriate, shall be equal to the greater of--
``(A) the amount of the penalty under such section,
determined without regard to this section, or
``(B) the amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the penalty determined under this subsection is equal to
$40 for each day during which a failure described under
subsection (a) continues. The maximum penalty under this
paragraph on failures with respect to any 1 return shall not
exceed the lesser of $20,000 or 10 percent of the gross
receipts of the taxpayer for the year.
``(2) Increased penalties for taxpayers with gross receipts
between $1,000,000 and $100,000,000.--
``(A) Taxpayers with gross receipts between
$1,000,000 and $25,000,000.--In the case of a taxpayer
having gross receipts exceeding $1,000,000 but not
exceeding $25,000,000 for any year--
``(i) the first sentence of paragraph (1)
shall be applied by substituting `$200' for
`$40', and
``(ii) in lieu of applying the second
sentence of paragraph (1), the maximum penalty
under paragraph (1) shall not exceed $100,000.
``(B) Taxpayers with gross receipts over
$25,000,000.--Except as provided in paragraph (3), in
the case of a taxpayer having gross receipts exceeding
$25,000,000 for any year--
``(i) the first sentence of paragraph (1)
shall be applied by substituting `$500' for
`$40', and
``(ii) in lieu of applying the second
sentence of paragraph (1), the maximum penalty
under paragraph (1) shall not exceed $250,000.
``(3) Increased penalties for certain taxpayers with gross
receipts exceeding $100,000,000.--In the case of a return
described in section 6651--
``(A) Taxpayers with gross receipts between
$100,000,000 and $250,000,000.--In the case of a
taxpayer having gross receipts exceeding $100,000,000
but not exceeding $250,000,000 for any year--
``(i) the amount of the penalty determined
under this subsection shall equal the sum of--
``(I) $50,000, plus
``(II) $1,000 for each day during
which such failure continues (twice
such amount for each day such failure
continues after the first such 60
days), and
``(ii) the maximum amount under clause
(i)(II) on failures with respect to any 1
return shall not exceed $200,000.
``(B) Taxpayers with gross receipts over
$250,000,000.--In the case of a taxpayer having gross
receipts exceeding $250,000,000 for any year--
``(i) the amount of the penalty determined
under this subsection shall equal the sum of--
``(I) $250,000, plus
``(II) $2,500 for each day during
which such failure continues (twice
such amount for each day such failure
continues after the first such 60
days), and
``(ii) the maximum amount under clause
(i)(II) on failures with respect to any 1
return shall not exceed $250,000.
``(C) Exception for certain returns.--Subparagraphs
(A) and (B) shall not apply to any return of tax
imposed under section 511.''.
(b) Clerical Amendment.--The table of sections for part I of
subchapter A of chapter 68 is amended by inserting after the item
relating to section 6652 the following new item:
``Sec. 6652A. Failure to file certain returns electronically.''.
(c) Effective Date.--The amendments made by this section shall
apply to returns required to be filed on or after January 1, 2008.
PART III--GENERAL PROVISIONS
SEC. 561. 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
contacts, 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
subparagraph (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
does not establish compliance with the rule, or
establish 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 prepare
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 Entrepreneurship 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. 562. SMALL BUSINESS CHILD CARE GRANT PROGRAM.
(a) Establishment.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary'') shall establish 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 determine 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 paragraph
(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;
(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
appropriate by the State.
(2) Application.--In order for a small business or
consortium 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 66\2/3\ 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--
(1) who receives assistance from a State shall comply with
all applicable State and local licensing and regulatory
requirements 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
standards.
(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
responsibility 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
assistance 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
regulation provide for an appeals process with respect
to repayments 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
determine--
(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
determine 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 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 Development 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 preceding
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 Organizations.--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
activities'' 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. 563. 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) 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. 564. SENSE OF THE SENATE CONCERNING PERSONAL SAVINGS.
(a) Findings.--The Senate finds that--
(1) the personal saving rate in the United States is at its
lowest point since the Great Depression, with the rate having
fallen into negative territory;
(2) the United States ranks at the bottom of the Group of
Twenty (G-20) nations in terms of net national saving rate;
(3) approximately half of all the working people of the
United States work for an employer that does not offer any kind
of retirement plan;
(4) existing savings policies enacted by Congress provide
limited incentives to save for low- and moderate-income
families; and
(5) the Social Security program was enacted to serve as the
safest component of a retirement system that also includes
employer-sponsored retirement plans and personal savings.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) Congress should enact policies that promote savings
vehicles for retirement that are simple, easily accessible and
provide adequate financial security for all the people of the
United States;
(2) it is important to begin retirement saving as early as
possible to take full advantage of the power of compound
interest; and
(3) regularly contributing money to a financially-sound
investment account is one important method for helping to
achieve one's retirement goals.
SEC. 565. 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 subsection (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 application under this subsection and notify
the applicant for each such application.
``(4) Award of grants.--
``(A) In general.--Subject to the availability of
appropriations, 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 subsection.
``(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 accompanied by such information as the
Administrator may establish.
``(B) Unlimited renewals.--There shall be no
limitation on the number of times a grant may be
renewed under subparagraph (A).
``(n) Privacy Requirements.--
``(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving assistance under
this section without the consent of such individual or small
business concern, unless--
``(A) the Administrator is ordered to make such a
disclosure 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 subsection
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
regulations 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. 566. 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
following:
``(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
Committee 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 articles,
materials, or supplies outside of the United States.
``(2) Contents of report.--The report required by paragraph
(1) shall separately include, for the fiscal year covered by
such report--
``(A) the dollar value of any articles, materials,
or supplies that were manufactured outside the United
States;
``(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 supplies outside the United States, the
specific exception under this section that was used to
purchase such articles, materials, or supplies; and
``(D) a summary of--
``(i) the total procurement funds expended
on articles, materials, and supplies
manufactured inside the United States; and
``(ii) the total procurement funds expended
on articles, 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
subsection 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)).''.
SEC. 567. SENSE OF THE SENATE REGARDING REPEAL OF 1993 INCOME TAX
INCREASE ON SOCIAL SECURITY BENEFITS.
It is the sense of the Senate that Congress should repeal the 1993
tax increase on Social Security benefits and eliminate wasteful
spending, such as spending on unnecessary tax loopholes, in order to
fully offset the cost of such repeal and avoid forcing taxpayers to pay
substantially more interest to foreign creditors.
SEC. 568. SENSE OF THE SENATE REGARDING PERMANENT TAX INCENTIVES TO
MAKE EDUCATION MORE AFFORDABLE AND MORE ACCESSIBLE FOR
AMERICAN FAMILIES.
It is the sense of the Senate that Congress should make permanent
the tax incentives to make education more affordable and more
accessible for American families and eliminate wasteful spending, such
as spending on unnecessary tax loopholes, in order to fully offset the
cost of such incentives and avoid forcing taxpayers to pay
substantially more interest to foreign creditors.
SEC. 569. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.
Section 274A(e) of the Immigration and Nationality Act (8 U.S.C.
1324a(e)) is amended by adding at the end the following new paragraph:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or
agreements.--
``(i) In general.--Subject to clause (iii)
and subparagraph (C), if an employer who does
not hold a Federal contract, grant, or
cooperative agreement is determined to have
violated this section, the employer shall be
debarred from the receipt of a Federal
contract, grant, or cooperative agreement for a
period of 7 years.
``(ii) Placement on excluded list.--The
Secretary of Homeland Security or the Attorney
General shall advise the Administrator of
General Services of the debarment of an
employer under clause (i) and the Administrator
of General Services shall list the employer on
the List of Parties Excluded from Federal
Procurement and Nonprocurement Programs for a
period of 7 years.
``(iii) Waiver.--
``(I) Authority.--The Administrator
of General Services, in consultation
with the Secretary of Homeland Security
and the Attorney General, may waive
operation of clause (i) or may limit
the duration or scope of a debarment
under clause (i) if such waiver or
limitation is necessary to national
defense or in the interest of national
security.
``(II) Notification to congress.--
If the Administrator grants a waiver or
limitation described in subclause (I),
the Administrator shall submit to each
member of the Committee on the
Judiciary of the Senate and of the
Committee on the Judiciary of the House
of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial
review.--The decision of whether to
debar or take alternative action under
this clause shall not be judicially
reviewed.
``(B) Employers with contracts, grants, or
agreements.--
``(i) In general.--Subject to clause (iii)
and subclause (C), an employer who holds a
Federal contract, grant, or cooperative
agreement and is determined to have violated
this section shall be debarred from the receipt
of new Federal contracts, grants, or
cooperative agreements for a period of 10
years.
``(ii) Notice to agencies.--Prior to
debarring the employer under clause (i), the
Secretary of Homeland Security, in cooperation
with the Administrator of General Services,
shall advise any agency or department holding a
contract, grant, or cooperative agreement with
the employer of the Government's intention to
debar the employer from the receipt of new
Federal contracts, grants, or cooperative
agreements for a period of 10 years.
``(iii) Waiver.--
``(I) Authority.--After
consideration of the views of any
agency or department that holds a
contract, grant, or cooperative
agreement with the employer, the
Administrator of General Services, in
consultation with the Secretary of
Homeland Security and the Attorney
General, may waive operation of clause
(i) or may limit the duration or scope
of the debarment under clause (i) if
such waiver or limitation is necessary
to the national defense or in the
interest of national security.
``(II) Notification to congress.--
If the Administrator grants a waiver or
limitation described in subclause (I),
the Administrator shall submit to each
member of the Committee on the
Judiciary of the Senate and of the
Committee on the Judiciary of the House
of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial
review.--The decision of whether to
debar or take alternate action under
this clause shall not be judicially
reviewed.
``(C) Exemption from penalty for employers
participating in the basic pilot program.--In the case
of imposition on an employer of a debarment from the
receipt of a Federal contract, grant, or cooperative
agreement under subparagraph (A) or (B), that penalty
shall be waived if the employer establishes that the
employer was voluntarily participating in the basic
pilot program under section 403(a) of the Illegal
Immigration Reform and Immigrant Responsibility Act of
1996 (8 U.S.C. 1324a note) at the time of the
violations of this section that resulted in the
debarment.''.
SEC. 570. DISABILITY PREFERENCE PROGRAM FOR TAX COLLECTION CONTRACTS.
(a) In General.--Section 6306 (relating to qualified tax collection
contracts) is amended--
(1) by striking ``Nothing'' in subsection (a) and inserting
``Except as provided in subsection (c), nothing'',
(2) by redesignating subsections (c), (d), (e), and (f) as
subsections (d), (e), (f), and (g), respectively, and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Disability Preference Program for Tax Collection Contracts.--
``(1) In general.--The Secretary shall provide a qualifying
disability preference to any program under which any qualified
tax collection contract is awarded on or after the effective
date of this subsection and shall ensure compliance with the
requirements of paragraph (3).
``(2) Qualifying disability preference.--
``(A) In general.--For purposes of this subsection,
the term `qualifying disability preference' means a
preference pursuant to which at least 10 percent (in
both number and aggregate dollar amount) of the
accounts covered by qualified tax collection contracts
are awarded to persons satisfying the following
criteria:
``(i) Such person employs within the United
States at least 50 severely disabled
individuals.
``(ii) Such person shall agree as an
enforceable condition of its bid for a
qualified tax collection contract that within
90 days after the date such contract is
awarded, not less than 35 percent of the
employees of such person employed in connection
with providing services under such contract
shall--
``(I) be hired after the date such
contract is awarded, and
``(II) be severely disabled
individuals.
``(B) Determination of satisfaction of criteria.--
Within 60 days after the end of the period specified in
subparagraph (A)(ii), the Secretary shall determine
whether such person has met the 35 percent requirement
specified in such subparagraph, and if such requirement
has not been met, shall terminate the contract for
nonperformance. For purposes of determining whether
such 35 percent requirement has been satisfied,
severely disabled individuals providing services under
such contract shall not include any severely disabled
individuals who were counted toward satisfaction of the
50-employee requirement specified in subparagraph
(A)(i), unless such person replaced such individuals by
hiring additional severely disabled individuals who do
not perform services under such contract.
``(3) Program-wide employment of severely disabled
individuals.--Not less than 15 percent of all individuals hired
by all persons to whom tax collection contracts are issued by
the Secretary under this section, to perform work under such
tax collection contracts, shall qualify as severely disabled
individuals.
``(4) Severely disabled individual.--For purposes of this
subsection, the term `severely disabled individual' means any
one of the following:
``(A) Any veteran of the United States Armed Forces
with--
``(i) a disability determined by the
Secretary of Veterans Affairs to be service-
connected, or
``(ii) a disability deemed by statute to be
service-connected.
``(B) Any individual who is a disabled beneficiary
(as defined in section 1148(k)(2) of the Social
Security Act (42 U.S.C. 1320b-19(k)(2)) or who would be
considered to be such a disabled beneficiary but for
having income or assets in excess of the income or
asset eligibility limits established under title II or
XVI of the Social Security Act, respectively.''.
(b) Report by Government Accountability Office.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the effectiveness and
efficiency of the use of private contractors for Internal
Revenue Service debt collection. The study required by this
paragraph shall be completed in time to be taken into account
by Congress before any new contracting is carried out under
section 6306 of the Internal Revenue Code of 1986 in years
following 2008.
(2) Study of comparable efforts.--As part of the study
required under paragraph (1), the Comptroller General shall--
(A) make every effort to determine the relative
effectiveness and efficiency of debt collection
contracting by Federal staff compared to private
contractors, using a cost calculation for both Federal
staff and private contractors which includes all
benefits and overhead costs,
(B) compare the cost effectiveness of the
contracting approach of the Department of the Treasury
to that of the Department of Education's Office of
Student Financial Assistance, and
(C) survey State tax debt collection experiences
for lessons that may be applicable to the Internal
Revenue Service collection efforts.
(c) Effective Date.--The amendments made by this section shall
apply to any tax collection contract awarded on or after the date of
the enactment of this Act.
This Act may be cited as the ``U.S. Troop Readiness, Veterans'
Care, Katrina Recovery, and Iraq Accountability Appropriations Act,
2007''.
Attest:
Secretary.
110th CONGRESS
1st Session
H. R. 1591
_______________________________________________________________________
AMENDMENT