[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
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