[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1591 Enrolled Bill (ENR)]

        H.R.1591

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Thursday,
            the fourth day of January, two thousand and seven


                                 An Act


 
Making emergency supplemental appropriations for the fiscal year ending 
               September 30, 2007, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 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, $460,000,000, to remain available until expended.

                    GENERAL PROVISION--THIS CHAPTER

    Sec. 1101. There is hereby appropriated $40,000,000 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

                            Legal Activities


             Salaries and Expenses, General Legal Activities

    For an additional amount for ``Salaries and Expenses, General Legal 
Activities'', $1,648,000, to remain available until September 30, 2008.


              salaries and expenses, united states attorneys

    For an additional amount for ``Salaries and Expenses, United States 
Attorneys'', $5,000,000, to remain available until September 30, 2008.

                     United States Marshals Service


                          SALARIES AND EXPENSES

    For an additional amount for ``Salaries and Expenses'', $6,450,000, 
to remain available until September 30, 2008.

                       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'', 
$268,000,000, of which $258,000,000 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'', of which $500,000 
shall be transferred to and merged with ``Department of Justice, Office 
of the Inspector General''.

                    Drug Enforcement Administration


                          Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'', 
$12,166,000, 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'', 
$8,853,350,000.

                        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'', 
$86,023,000.

                    Reserve Personnel, Marine Corps

    For an additional amount for ``Reserve Personnel, Marine Corps'', 
$5,660,000.

                      Reserve Personnel, Air Force

    For an additional amount for ``Reserve Personnel, Air Force'', 
$11,573,000.

                     National Guard Personnel, Army

    For an additional amount for ``National Guard Personnel, Army'', 
$545,286,000.

                  National Guard Personnel, Air Force

    For an additional amount for ``National Guard Personnel, Air 
Force'', $44,033,000.

                       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'', 
$4,676,670,000, of which up to $120,293,000 shall be transferred to 
Coast Guard, ``Operating Expenses'', for reimbursement for activities 
which support activities requested by the Navy.

                Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, Marine 
Corps'', $1,146,594,000.

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, Air 
Force'', $6,650,881,000.

                Operation and Maintenance, Defense-Wide

    For an additional amount for ``Operation and Maintenance, Defense-
Wide'', $2,714,487,000, 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'', $355,600,000, 
to remain available for transfer until September 30, 2008: Provided, 
That up to $50,000,000 may be obligated and expended for purposes of 
the Task Force to Improve Business and Stability Operations in Iraq.

             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.

                    Strategic Reserve Readiness Fund


                      (INCLUDING TRANSFER OF FUNDS)

    In addition to amounts provided in this or any other Act, for 
training, operations, repair of equipment, purchases of equipment, and 
other expenses related to improving the readiness of non-deployed 
United States military forces, $2,000,000,000, to remain available 
until September 30, 2009; of which $1,000,000,000 shall be transferred 
to ``National Guard and Reserve Equipment'' for the purchase of 
equipment for the Army National Guard; and of which $1,000,000,000 
shall be transferred by the Secretary of Defense only to appropriations 
for military personnel, operation and maintenance, procurement, and 
defense working capital funds to accomplish the purposes provided 
herein: Provided, That the funds transferred shall be merged with and 
shall be available for the same purposes and for the same time period 
as the appropriation to which transferred: Provided further, That the 
Secretary of Defense shall, not fewer than thirty days prior to making 
transfers under this authority, notify the congressional defense 
committees in writing of the details of any such transfers made 
pursuant to this authority: Provided further, That funds shall be 
transferred to the appropriation accounts not later than 120 days after 
the enactment of this Act: 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.

                              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'', $3,404,315,000, 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'', 
$11,076,137,000, to remain available until September 30, 2009.

                       Aircraft Procurement, Navy

    For an additional amount for ``Aircraft Procurement, Navy'', 
$1,090,287,000, 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'', 
$748,749,000, to remain available until September 30, 2009.

                       Procurement, Marine Corps

    For an additional amount for ``Procurement, Marine Corps'', 
$2,252,749,000, to remain available until September 30, 2009.

                    Aircraft Procurement, Air Force

    For an additional amount for ``Aircraft Procurement, Air Force'', 
$2,106,468,000, to remain available until September 30, 2009.

                     Missile Procurement, Air Force

    For an additional amount for ``Missile Procurement, Air Force'', 
$94,900,000, 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'', 
$2,096,200,000, to remain available until September 30, 2009.

                       Procurement, Defense-Wide

    For an additional amount for ``Procurement, Defense-Wide'', 
$980,050,000, 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'', $100,006,000, to remain available until September 
30, 2008.

            Research, Development, Test and Evaluation, Navy

    For an additional amount for ``Research, Development, Test and 
Evaluation, Navy'', $298,722,000, 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'', $187,176,000, 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'', $512,804,000, to remain available until 
September 30, 2008.

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For an additional amount for ``Defense Working Capital Funds'', 
$1,315,526,000.

                     National Defense Sealift Fund

    For an additional amount for ``National Defense Sealift Fund'', 
$5,000,000.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$3,251,853,000; of which $2,802,153,000 shall be for operation and 
maintenance, including $600,000,000 which shall be available for the 
treatment of Traumatic Brain Injury and Post Traumatic Stress Disorder 
and remain available until September 30, 2008; of which $118,000,000 
shall be for procurement, to remain available until September 30, 2009; 
and of which $331,700,000 shall be for research, development, test and 
evaluation, to remain available until September 30, 2008: Provided, 
That if the Secretary of Defense determines that funds made available 
herein for the treatment of Traumatic Brain Injury and Post Traumatic 
Stress Disorder are in excess to the requirements of the Department of 
Defense he may transfer amounts in excess of that requirement to the 
Department of Veterans Affairs to be available only for the same 
purpose.

         Drug Interdiction and Counter-Drug Activities, Defense

    For an additional amount for ``Drug Interdiction and Counter-Drug 
Activities, Defense'', $254,665,000, to remain available until 
expended.

                            RELATED AGENCIES

               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 chapter: 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.


                           (TRANSFER OF FUNDS)

    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 chapter 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 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 operation and 
maintenance in this chapter to the Department of Defense, not to exceed 
$456,400,000 may be used, notwithstanding any other provision of law, 
to fund the Commanders' 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. Section 9010 of division A of Public Law 109-289 is 
amended by striking ``2007'' each place it appears and inserting 
``2008''.
    Sec. 1309. 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. 1310. 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. 1311. 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. 1312. 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. 1313. (a) Report by Secretary of Defense.--Not later than 30 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a report 
that contains individual transition readiness assessments by unit of 
Iraq and Afghan security forces. The Secretary of Defense shall submit 
to the congressional defense committees updates of the report required 
by this subsection every 90 days after the date of the submission of 
the report until October 1, 2008. The report and updates of the report 
required by this subsection shall be submitted in classified form.
    (b) Report by OMB.--
        (1) The Director of the Office of Management and Budget, in 
    consultation with the Secretary of Defense; the Commander, Multi-
    National Security Transition Command--Iraq; and the Commander, 
    Combined Security Transition Command--Afghanistan, shall submit to 
    the congressional defense committees not later than 120 days after 
    the date of the enactment of this Act and every 90 days thereafter 
    a report on the proposed use of all funds under each of the 
    headings ``Iraq Security Forces Fund'' and ``Afghanistan Security 
    Forces Fund'' on a project-by-project basis, for which the 
    obligation of funds is anticipated during the three-month period 
    from such date, including estimates by the commanders referred to 
    in this paragraph of the costs required to complete each such 
    project.
        (2) The report required by this subsection shall include the 
    following:
            (A) The use of all funds on a project-by-project basis for 
        which funds appropriated under the headings referred to in 
        paragraph (1) were obligated prior to the submission of the 
        report, including estimates by the commanders referred to in 
        paragraph (1) of the costs to complete each project.
            (B) The use of all funds on a project-by-project basis for 
        which funds were appropriated under the headings referred to in 
        paragraph (1) in prior appropriations Acts, or for which funds 
        were made available by transfer, reprogramming, or allocation 
        from other headings in prior appropriations Acts, including 
        estimates by the commanders referred to in paragraph (1) of the 
        costs to complete each project.
            (C) An estimated total cost to train and equip the Iraq and 
        Afghan security forces, disaggregated by major program and sub-
        elements by force, arrayed by fiscal year.
    (c) Notification.--The Secretary of Defense shall notify the 
congressional defense committees of any proposed new projects or 
transfers of funds between sub-activity groups in excess of $15,000,000 
using funds appropriated by this Act under the headings ``Iraq Security 
Forces Fund'' and ``Afghanistan Security Forces Fund''.
    Sec. 1314. None of the funds appropriated or otherwise made 
available by this chapter may be obligated or expended to provide award 
fees to any defense contractor contrary to the provisions of section 
814 of the National Defense Authorization Act, Fiscal Year 2007 (Public 
Law 109-364).
    Sec. 1315. Not more than 85 percent of the funds appropriated in 
this chapter for operation and maintenance shall be available for 
obligation unless and until the Secretary of Defense submits to the 
congressional defense committees a report detailing the use of 
Department of Defense funded service contracts conducted in the theater 
of operations in support of United States military and reconstruction 
activities in Iraq and Afghanistan: Provided, That the report shall 
provide detailed information specifying the number of contracts and 
contract costs used to provide services in fiscal year 2006, with sub-
allocations by major service categories: Provided further, That the 
report also shall include estimates of the number of contracts to be 
executed in fiscal year 2007: Provided further, That the report shall 
include the number of contractor personnel in Iraq and Afghanistan 
funded by the Department of Defense: Provided further, That the report 
shall be submitted to the congressional defense committees not later 
than August 1, 2007.
    Sec. 1316. Section 1477 of title 10, United States Code, is 
amended--
        (1) in subsection (a), by striking ``A death gratuity'' and 
    inserting ``Subject to subsection (d), a death gratuity'';
        (2) by redesignating subsection (d) as subsection (e) and, in 
    such subsection, by striking ``If an eligible survivor dies before 
    he'' and inserting ``If a person entitled to all or a portion of a 
    death gratuity under subsection (a) or (d) dies before the 
    person''; and
        (3) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) During the period beginning on the date of the enactment of 
this subsection and ending on September 30, 2007, a person covered by 
section 1475 or 1476 of this title may designate another person to 
receive not more than 50 percent of the amount payable under section 
1478 of this title. The designation shall indicate the percentage of 
the amount, to be specified only in 10 percent increments up to the 
maximum of 50 percent, that the designated person may receive. The 
balance of the amount of the death gratuity shall be paid to or for the 
living survivors of the person concerned in accordance with paragraphs 
(1) through (5) of subsection (a).''.
    Sec. 1317. Section 9007 of Public Law 109-289 is amended by 
striking ``20'' and inserting ``287''.
    Sec. 1318. 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 
    medical facilities, or for facilities used to quarter individuals 
    with medical conditions that may require medical supervision, as 
    applicable, in the United States.
        (2) Where appropriate, 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 the congressional defense 
committees 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) where appropriate, 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. 1319. 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. 1320. Independent Assessment of Capabilities of Iraqi Security 
Forces. (a) 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:
        (1) 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.
        (2) The training; equipping; command, control and intelligence 
    capabilities; and logistics capacity of the ISF.
        (3) The likelihood that, given the ISF's record of preparedness 
    to date, following years of training and equipping by U.S. forces, 
    the continued support of U.S. troops will contribute to the 
    readiness of the ISF to fulfill the missions outlined in 
    subparagraph (1).
    (b) 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. 1321. Award of Medal of Honor to Woodrow W. Keeble for Valor 
During Korean War. (a) Waiver of Time Limitations.--Notwithstanding any 
applicable time limitation under section 3744 of title 10, United 
States Code, or any other time limitation with respect to the award of 
certain medals to individuals who served in the Armed Forces, the 
President may award to Woodrow W. Keeble the Medal of Honor under 
section 3741 of that title for the acts of valor described in 
subsection (b).
    (b) Acts of Valor.--The acts of valor referred to in subsection (a) 
are the acts of Woodrow W. Keeble, then-acting platoon leader, carried 
out on October 20, 1951, during the Korean War.


                           (TRANSFER OF FUNDS)

    Sec. 1322. Of the amount appropriated under the heading ``Other 
Procurement, Army'', in title III of division A of Public Law 109-148, 
$6,250,000 shall be transferred to ``Military Construction, Army''.


                           (TRANSFER OF FUNDS)

    Sec. 1323. Notwithstanding any other provision of law, not to 
exceed $110,000,000 may be transferred to the ``Economic Support 
Fund'', Department of State, for use in programs in Pakistan from 
amounts appropriated by this Act as follows:
        ``Military Personnel, Army'', $70,000,000.
        ``National Guard Personnel, Army'', $13,183,000.
        ``Defense Health Program'', $26,817,000.

                               CHAPTER 4

                          DEPARTMENT OF ENERGY

                    ATOMIC ENERGY DEFENSE ACTIVITIES

                National Nuclear Security Administration


                     Defense Nuclear Nonproliferation

    For an additional amount for ``Defense Nuclear Nonproliferation'', 
$150,000,000, to remain available until expended.

                    GENERAL PROVISION--THIS CHAPTER


                           (TRANSFER OF FUNDS)

    Sec. 1401. The Administrator of the National Nuclear Security 
Administration is authorized to transfer up to $1,000,000 from Defense 
Nuclear Nonproliferation to the Office of the Administrator during 
fiscal year 2007 supporting nuclear nonproliferation activities.

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                        Analysis and Operations

    For an additional amount for ``Analysis and Operations'', 
$15,000,000, to remain available until September 30, 2008, to be used 
for support of the State and Local Fusion Center program.

              United States Customs and Border Protection


                          SALARIES AND EXPENSES

                      (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Salaries and Expenses'', 
$115,000,000, to remain available until September 30, 2008, to be used 
to increase the number of officers, intelligence analysts and support 
staff responsible for container security inspections, and for other 
efforts to improve supply chain security: Provided, That up to 
$5,000,000 shall be transferred to Federal Law Enforcement Training 
Center ``Salaries and Expenses'', for basic training costs.


  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, including the final Northern Border 
air wing, $120,000,000, to remain available until September 30, 2008.

           United States Immigration and Customs Enforcement


                          Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'', 
$10,000,000, to remain available until September 30, 2008.

                 Transportation Security Administration


                            Aviation Security

    For an additional amount for ``Aviation Security'', $970,000,000; 
of which $815,000,000 shall be for procurement and installation of 
checked baggage explosives detection systems, to remain available until 
expended; of which $45,000,000 shall be for expansion of checkpoint 
explosives detection pilot systems, to remain available until expended; 
and of which $110,000,000 shall be for air cargo security, to remain 
available until September 30, 2009.


                           Federal Air Marshals

    For an additional amount for ``Federal Air Marshals'', $8,000,000, 
to remain available until September 30, 2008.

                    National Protection and Programs


            Infrastructure Protection and Information Security

    For an additional amount for ``Infrastructure Protection and 
Information Security'', $37,000,000, to remain available until 
September 30, 2008.

                        Office of Health Affairs

    For an additional amount for ``Office of Health Affairs'' for 
nuclear event public health assessment and planning and other 
activities, $15,000,000, to remain available until September 30, 2008.

                  Federal Emergency Management Agency


                      Management and Administration

    For expenses for management and administration of the Federal 
Emergency Management Agency, $25,000,000, to remain available until 
September 30, 2008: Provided, That none of such funds made 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: Provided further, That unobligated 
amounts in the ``Administrative and Regional Operations'' and 
``Readiness, Mitigation, Response, and Recovery'' accounts shall be 
transferred to ``Management and Administration'' and may be used for 
any purpose authorized for such amounts and subject to limitation on 
the use of such amounts.


                         State and Local Programs

    For an additional amount for ``State and Local Programs'', 
$552,500,000; of which $190,000,000 shall be for port security grants 
pursuant to section 70107(l) of title 46, United States Code; of which 
$325,000,000 shall be for intercity rail passenger transportation, 
freight rail, and transit security grants; of which $35,000,000 shall 
be for regional grants and regional technical assistance to high risk 
urban areas for catastrophic event planning and preparedness; and of 
which $2,500,000 shall be for technical assistance: Provided, That none 
of the funds made available under this heading may be obligated for 
such regional grants and regional 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 regional technical 
assistance shall remain available until September 30, 2008.


                 EMERGENCY MANAGEMENT PERFORMANCE GRANTS

    For an additional amount for ``Emergency Management Performance 
Grants'', $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, $10,000,000, 
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 security research, $10,000,000, 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.


                           SYSTEMS ACQUISITION

    For an additional amount for ``Systems Acquisition'', $223,500,000, 
to remain available until expended: Provided, That none of the funds 
appropriated under this heading shall be obligated for full scale 
procurement of Advanced Spectroscopic Portal Monitors until the 
Secretary of Homeland Security has certified through a report to the 
Committees on Appropriations of the Senate and the House of 
Representatives that a significant increase in operational 
effectiveness will be achieved.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 1501. (a) Amendments.--Section 550 of the Department of 
Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note) is 
amended by--
        (1) in subsection (c), by striking ``consistent with similar'' 
    and inserting ``identical to the protections given'';
        (2) in subsection (c), by striking ``, site security plans, and 
    other information submitted to or obtained by the Secretary under 
    this section, and related vulnerability or security information, 
    shall be treated as if the information were classified material'' 
    and inserting ``and site security plans shall be treated as 
    sensitive security information (as that term is used in section 
    1520.5 of title 49, Code of Federal Regulations, or any subsequent 
    regulations relating to the same matter)''; and
        (3) by adding at the end of the section 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.''.
    (b) Regulatory Clarification.--Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Homeland Security 
shall update the regulations administered by the Secretary that govern 
sensitive security information, including 49 CFR 1520, to ensure the 
protection of all information required to be protected under section 
550(c) of the Department of Homeland Security Appropriations Act, 2007 
(6 U.S.C. 121 note), as amended by paragraph (a).
    Sec. 1502. 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. 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).

                               CHAPTER 6

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

                         Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'', $6,437,000, 
as follows:

                        Allowances and Expenses

    For an additional amount for allowances and expenses as authorized 
by House resolution or law, $6,437,000 for business continuity and 
disaster recovery, to remain available until expended.

                    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 
September 30, 2008.

                               CHAPTER 7

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

    For an additional amount for ``Military Construction, Army'', 
$1,255,890,000, to remain available until September 30, 2008: Provided, 
That notwithstanding any other provision of law, 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, not to exceed 
$173,700,000 shall be available for study, planning, design, and 
architect and engineer services: Provided further, That of the funds 
made available under this heading, $369,690,000 shall not be obligated 
or expended until the Secretary of Defense submits a detailed report 
explaining how military road construction is coordinated with NATO and 
coalition nations: Provided further, That of the funds made available 
under this heading, $401,700,000 shall not be obligated or expended 
until the Secretary of Defense submits a detailed stationing plan to 
support Army end-strength growth to the Committees on Appropriations of 
the House of Representatives and Senate: Provided further, That of the 
funds provided under this heading, $274,800,000 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 United States military personnel in Iraq.

              Military Construction, Navy and Marine Corps

    For an additional amount for ``Military Construction, Navy and 
Marine Corps'', $370,990,000, to remain available until September 30, 
2008: Provided, That notwithstanding any other provision of law, 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, not to 
exceed $49,600,000 shall be available for study, planning, design, and 
architect and engineer services: Provided further, That of the funds 
made available under this heading, $324,270,000 shall not be obligated 
or expended until the Secretary of Defense submits a detailed 
stationing plan to support Marine Corps end-strength growth to the 
Committees on Appropriations of the House of Representatives and 
Senate.

                    Military Construction, Air Force

    For an additional amount for ``Military Construction, Air Force'', 
$43,300,000, to remain available until September 30, 2008: Provided, 
That notwithstanding any other provision of law, 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, not to exceed 
$3,000,000 shall be available for study, planning, design, and 
architect and engineer services.

            Department of Defense Base Closure Account 2005

    For deposit into the Department of Defense Base Closure Account 
2005, established by section 2906A(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: Provided, That within 30 days of the 
enactment of this Act, the Secretary of Defense shall submit a detailed 
spending plan to the Committees on Appropriations of the House of 
Representatives and Senate.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 1701. Notwithstanding any other provision of law, none of the 
funds in this or any other Act may be used to close 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: Provided, That 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 maintain the maximum level of 
inpatient and outpatient services.
    Sec. 1702. 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.

                               CHAPTER 8

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                     DIPLOMATIC AND CONSULAR PROGRAMS

                      (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Diplomatic and Consular Programs'', 
$870,658,000, to remain available until September 30, 2008, of which 
$96,500,000 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 of the amount available 
under this heading, $258,000 shall be transferred to, and merged with, 
funds available in fiscal year 2007 for expenses for the United States 
Commission on International Religious Freedom: Provided further, That 
20 percent of the amount available for Iraq operations shall not be 
obligated until the Committees on Appropriations receive and approve a 
detailed plan for expenditure, prepared by the Secretary of State, and 
submitted within 60 days after the date of enactment of this Act: 
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 terrorism 
rewards.


                     OFFICE OF THE INSPECTOR GENERAL

                      (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Office of Inspector General'', 
$36,500,000, to remain available until December 31, 2008: Provided, 
That $35,000,000 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'', $20,000,000, to remain available until expended.

                      International Organizations


               Contributions to International Organizations

    For an additional amount for ``Contributions to International 
Organizations'', $50,000,000, to remain available until September 30, 
2008.


         Contributions for International Peacekeeping Activities

    For an additional amount for ``Contributions for International 
Peacekeeping Activities'', $288,000,000, 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.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President


            United States Agency for International Development

                 Child Survival and Health Programs Fund

                      (including transfer of funds)

    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, if the 
President determines and reports to the Committees on Appropriations 
that the human-to-human transmission of the avian influenza virus is 
efficient and sustained, and is spreading internationally, 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 
transferred to, and merged with, funds made available under this 
heading to combat avian influenza: Provided further, That funds made 
available pursuant to the authority of the previous proviso shall be 
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'', $165,000,000, to remain available until expended.


    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'', $8,700,000, 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'', $3,500,000, to remain available until September 30, 2008.

                  Other Bilateral Economic Assistance


                          Economic Support Fund

    For an additional amount for ``Economic Support Fund'', 
$2,649,300,000, to remain available until September 30, 2008: Provided, 
That of the funds appropriated under this heading, $57,400,000 shall be 
made available to nongovernmental organizations in Iraq for economic 
and social development programs and activities in areas of conflict: 
Provided further, That the responsibility for policy decisions and 
justifications for the use of funds appropriated by the previous 
proviso shall be the responsibility of the United States Chief of 
Mission in Iraq: Provided further, That none of the funds appropriated 
under this heading in this Act or in prior Acts making appropriations 
for foreign operations, export financing, and related programs may be 
made available for the Political Participation Fund and the National 
Institutions Fund: 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.


           Assistance for Eastern Europe and the Baltic States

    For an additional amount for ``Assistance for Eastern Europe and 
the Baltic States'', $229,000,000, to remain available until September 
30, 2008, for assistance for Kosovo.

                          Department of State


                              Democracy Fund

    For an additional amount for ``Democracy Fund'', $260,000,000, to 
remain available until September 30, 2008: Provided, That of the funds 
appropriated under this heading, not less than $190,000,000 shall be 
made available for the Human Rights and Democracy Fund of the Bureau of 
Democracy, Human Rights, and Labor, Department of State, and not less 
than $60,000,000 shall be made available for the United States Agency 
for International Development, for democracy, human rights and rule of 
law programs in Iraq: Provided further, That not later than 60 days 
after enactment of this Act, 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.


           International Narcotics Control and Law Enforcement

                     (including rescission of funds)

    For an additional amount for ``International Narcotics Control and 
Law Enforcement'', $257,000,000, 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'', 
$130,500,000, to remain available until September 30, 2008, of which 
not less than $5,000,000 shall be made available to rescue Iraqi 
scholars.


      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'', $57,500,000, to remain available until 
September 30, 2008.

                       Department of the Treasury


                International Affairs Technical Assistance

    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'', $265,000,000, to remain available until September 30, 2008.


                         Peacekeeping Operations

    For an additional amount for ``Peacekeeping Operations'', 
$230,000,000, to remain available until September 30, 2008: Provided, 
That of the funds appropriated under this heading, not less than 
$40,000,000 shall be made available, notwithstanding section 660 of the 
Foreign Assistance Act of 1961, for assistance for Liberia for security 
sector reform: Provided further, That not later than 30 days after 
enactment of this Act and every 30 days thereafter until September 30, 
2008, the Secretary of State shall submit a report to the Committees on 
Appropriations detailing the obligation and expenditure of funds made 
available under this heading in this Act and in prior Acts making 
appropriations for foreign operations, export financing, and related 
programs.

                    GENERAL PROVISIONS--THIS CHAPTER


                          authorization of funds

    Sec. 1801. 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 OVERSIGHT AUTHORITY

    Sec. 1802. 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''.


                                 lebanon

    Sec. 1803. (a) Limitation on Economic Support Fund Assistance for 
Lebanon.--None of the funds made available in this Act under the 
heading ``Economic Support Fund'' for cash transfer assistance for the 
Government of Lebanon may be made available for obligation until the 
Secretary of State reports to the Committees on Appropriations on 
Lebanon's economic reform plan and on the specific conditions and 
verifiable benchmarks that have been agreed upon by the United States 
and the Government of Lebanon pursuant to the Memorandum of 
Understanding on cash transfer assistance for Lebanon.
    (b) Limitation on Foreign Military Financing Program and 
International Narcotics Control and Law Enforcement Assistance for 
Lebanon.-- None of the funds made available in this Act under the 
heading ``Foreign Military Financing Program'' or ``International 
Narcotics Control and Law Enforcement'' for military or police 
assistance to Lebanon may be made available for obligation until the 
Secretary of State submits to the Committees on Appropriations a report 
on procedures established to determine eligibility of members and units 
of the armed forces and police forces of Lebanon to participate in 
United States training and assistance programs and on the end use 
monitoring of all equipment provided under such programs to the 
Lebanese armed forces and police forces.
    (c) Certification Required.--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.
    (d) Report Required.--Not later than 45 days after the date of the 
enactment of this Act, the Secretary of State shall submit to the 
Committees on Appropriations a report on the Government of Lebanon's 
actions to implement section 14 of United Nations Security Council 
Resolution 1701 (August 11, 2006).
    (e) Special Authority.--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 (division B of Public Law 109-289, as 
amended by Public Law 110-5).


                            DEBT RESTRUCTURING

    Sec. 1804. 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.


                     government accountability office

    Sec. 1805. To facilitate effective oversight of programs and 
activities in Iraq by the Government Accountability Office (GAO), the 
Department of State shall provide GAO staff members the country 
clearances, life support, and logistical and security support necessary 
for GAO personnel to establish a presence in Iraq for periods of not 
less than 45 days.


                     HUMAN RIGHTS AND DEMOCRACY FUND

    Sec. 1806. 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. 1807. (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 1 additional year.
        (3) Not more than 10 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, 
2007. 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. 1808. (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''.
        ``Economic Support Fund''.
        ``Democracy Fund''.
        ``International Narcotics Control and Law Enforcement''.
        ``Migration and Refugee Assistance''.
    (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.


                SPENDING PLAN AND NOTIFICATION PROCEDURES

    Sec. 1809. 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 
heading ``International Disaster and Famine Assistance'': Provided, 
That funds appropriated under the headings in this chapter, except for 
funds appropriated under the heading named in this section, shall be 
subject to the regular notification procedures of the Committees on 
Appropriations.


                  conditions on assistance for pakistan

    Sec. 1810. None of the funds made available for assistance for the 
central Government of Pakistan under the heading ``Economic Support 
Fund'' in this title may be made available for non-project assistance 
until the Secretary of State submits to the Committees on 
Appropriations a report on the oversight mechanisms, performance 
benchmarks, and implementation processes for such funds: Provided, That 
notwithstanding any other provision of law, funds made available for 
non-project assistance pursuant to the previous proviso shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: Provided further, That of the funds made available for 
assistance for Pakistan under the heading ``Economic Support Fund'' in 
this title, $5,000,000 shall be made available for the Human Rights and 
Democracy Fund of the Bureau of Democracy, Human Rights, and Labor, 
Department of State, for political party development and election 
observation programs.


                          CIVILIAN RESERVE CORPS

    Sec. 1811. Of the funds appropriated by this Act under the heading 
``Diplomatic and Consular Programs'', up to $50,000,000 may be made 
available to support and maintain a civilian reserve corps: Provided, 
That none of the funds for a civilian reserve corps may be obligated 
without specific authorization in a subsequent Act of Congress: 
Provided further, That funds made available under this section shall be 
subject to the regular notification procedures of the Committees on 
Appropriations.


                     coordinator for iraq assistance

    Sec. 1812. (a) Coordinator for Iraq Assistance.--Not later than 30 
days after the date of the enactment of this Act, the President shall 
appoint a Coordinator for Iraq Assistance (hereinafter in this section 
referred to as the ``Coordinator''), by and with the advice and consent 
of the Senate, who shall report directly to the President.
    (b) Duties.--The Coordinator shall be responsible for--
        (1) developing and implementing an overall strategy for 
    political, economic, and military assistance for Iraq;
        (2) coordinating and ensuring coherence of Iraq assistance 
    programs and policy among all departments and agencies of the 
    Government of the United States that are implementing assistance 
    programs in Iraq, including the Department of State, the United 
    States Agency for International Development, the Department of 
    Defense, the Department of the Treasury, and the Department of 
    Justice;
        (3) working with the Government of Iraq in meeting the 
    benchmarks described in section 1904(a) of this Act in order to 
    ensure Iraq continues to be eligible to receive United States 
    assistance described in such section;
        (4) coordinating with other donors and international 
    organizations that are providing assistance for Iraq;
        (5) ensuring adequate management and accountability of United 
    States assistance programs for Iraq;
        (6) resolving policy and program disputes among departments and 
    agencies of the United States Government that are implementing 
    assistance programs in Iraq; and
        (7) coordinating United States assistance programs with the 
    reconstruction programs funded and implemented by the Government of 
    Iraq.
    (c) Rank and Status.--The Coordinator shall have the rank and 
status of ambassador.

                               CHAPTER 9

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 1901. (a) Congress finds that it is Defense Department policy 
that units should not be deployed for combat unless they are rated 
``fully mission capable''.
    (b) None of the funds appropriated or otherwise made available in 
this or any other Act may be used to deploy any unit of the Armed 
Forces to Iraq unless the chief of the military department concerned 
has certified in writing to the Committees on Appropriations and the 
Committees on Armed Services at least 15 days in advance of the 
deployment that the unit is fully mission capable.
    (c) For purposes of subsection (b), the term ``fully mission 
capable'' means capable of performing assigned mission essential tasks 
to prescribed standards under the conditions expected in the theater of 
operations, consistent with the guidelines set forth in the Department 
of Defense readiness reporting system.
    (d) The President, by certifying in writing to the Committees on 
Appropriations and the Committees on Armed Services that the deployment 
to Iraq of a unit that is not assessed fully mission capable is 
required for reasons of national security and by submitting along with 
the certification a report in classified and unclassified form 
detailing the particular reason or reasons why the unit's deployment is 
necessary despite the chief of the military department's assessment 
that the unit is not fully mission capable, may waive the limitation 
prescribed in subsection (b) on a unit-by-unit basis.
    Sec. 1902. (a) Congress finds that it is Defense Department policy 
that Army, Army Reserve, and National Guard units should not be 
deployed for combat beyond 365 days or that Marine Corps and Marine 
Corps Reserve units should not be deployed for combat beyond 210 days.
    (b) None of the funds appropriated or otherwise made available in 
this or any other Act may be obligated or expended to initiate the 
development of, continue the development of, or execute any order that 
has the effect of extending the deployment for Operation Iraqi Freedom 
of--
        (1) any unit of the Army, Army Reserve or Army National Guard 
    beyond 365 days; or
        (2) any unit of the Marine Corps or Marine Corps Reserve beyond 
    210 days.
    (c) The limitation prescribed in subsection (b) shall not be 
construed to require force levels in Iraq to be decreased below the 
total United States force levels in Iraq prior to January 10, 2007.
    (d) The President, by certifying in writing to the Committees on 
Appropriations and the Committees on Armed Services that the extension 
of a unit's deployment in Iraq beyond the periods specified in 
subsection (b) is required for reasons of national security and by 
submitting along with the certification a report in classified and 
unclassified form detailing the particular reason or reasons why the 
unit's extended deployment is necessary, may waive the limitations 
prescribed in subsection (b) on a unit-by-unit basis.
    Sec. 1903. (a) Congress finds that it is Defense Department policy 
that Army, Army Reserve, and National Guard units should not be 
redeployed for combat if the unit has been deployed within the previous 
365 consecutive days or that Marine Corps and Marine Corps Reserve 
units should not be redeployed for combat if the unit has been deployed 
within the previous 210 days.
    (b) None of the funds appropriated or otherwise made available in 
this or any other Act may be obligated or expended to initiate the 
development of, continue the development of, or execute any order that 
has the effect of deploying for Operation Iraqi Freedom of--
        (1) any unit of the Army, Army Reserve or Army National Guard 
    if such unit has been deployed within the previous 365 consecutive 
    days; or
        (2) any unit of the Marine Corps or Marine Corps Reserve if 
    such unit has been deployed within the previous 210 consecutive 
    days.
    (c) The limitation prescribed in subsection (b) shall not be 
construed to require force levels in Iraq to be decreased below the 
total United States force levels in Iraq prior to January 10, 2007.
    (d) The President, by certifying in writing to the Committees on 
Appropriations and the Committees on Armed Services that the 
redeployment of a unit to Iraq in advance of the periods specified in 
subsection (b) is required for reasons of national security and by 
submitting along with the certification a report in classified and 
unclassified form detailing the particular reason or reasons why the 
unit's redeployment is necessary, may waive the limitations prescribed 
in subsection (b) on a unit-by-unit basis.
    Sec. 1904. (a) The President shall make and transmit to Congress 
the following determinations, along with reports in classified and 
unclassified form detailing the basis for each determination, on or 
before July 1, 2007--
        (1) whether the Government of Iraq has given United States 
    Armed Forces and Iraqi Security Forces the authority to pursue all 
    extremists, including Sunni insurgents and Shiite militias, and is 
    making substantial progress in delivering necessary Iraqi Security 
    Forces for Baghdad and protecting such Forces from political 
    interference; intensifying efforts to build balanced security 
    forces throughout Iraq that provide even-handed security for all 
    Iraqis; ensuring that Iraq's political authorities are not 
    undermining or making false accusations against members of the 
    Iraqi Security Forces; eliminating militia control of local 
    security; establishing a strong militia disarmament program; 
    ensuring fair and just enforcement of laws; establishing political, 
    media, economic, and service committees in support of the Baghdad 
    Security Plan; and eradicating safe havens;
        (2) whether the Government of Iraq is making substantial 
    progress in meeting its commitment to pursue reconciliation 
    initiatives, including enactment of a hydro-carbon law; adoption of 
    legislation necessary for the conduct of provincial and local 
    elections; reform of current laws governing the de-Baathification 
    process; amendment of the Constitution of Iraq; and allocation of 
    Iraqi revenues for reconstruction projects;
        (3) whether the Government of Iraq and United States Armed 
    Forces are making substantial progress in reducing the level of 
    sectarian violence in Iraq; and
        (4) whether the Government of Iraq is ensuring the rights of 
    minority political parties in the Iraqi Parliament are protected.
    (b) If the President fails to make any of the determinations 
specified in subsection (a), the Secretary of Defense shall commence 
the redeployment of the Armed Forces from Iraq no later than July 1, 
2007, with a goal of completing such redeployment within 180 days.
    (c) If the President makes the determinations specified in 
subsection (a), the Secretary of Defense shall commence the 
redeployment of the Armed Forces from Iraq not later than October 1, 
2007, with a goal of completing such redeployment within 180 days.
    (d) Notwithstanding any other provision of law, funds appropriated 
or otherwise made available in this or any other Act are immediately 
available for obligation and expenditure to plan and execute a safe and 
orderly redeployment of the Armed Forces from Iraq, as specified in 
subsections (b) and (c).
    (e) After the conclusion of the redeployment specified in 
subsections (b) and (c), the Secretary of Defense may not deploy or 
maintain members of the Armed Forces in Iraq for any purpose other than 
the following:
        (1) Protecting American diplomatic facilities and American 
    citizens, including members of the United States Armed Forces.
        (2) Serving in roles consistent with customary diplomatic 
    positions.
        (3) Engaging in targeted special actions limited in duration 
    and scope to killing or capturing members of al-Qaeda and other 
    terrorist organizations with global reach.
        (4) Training and equipping members of the Iraqi Security 
    Forces.
    (f) Notwithstanding any other provision of law, 50 percent of the 
funds appropriated by title I of this Act for assistance to Iraq under 
each of the headings ``Economic Support Fund'' and ``International 
Narcotics Control and Law Enforcement'' shall be withheld from 
obligation until the President has made a certification to Congress 
that the Government of Iraq has enacted a broadly accepted hydro-carbon 
law that equitably shares oil revenues among all Iraqis; 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; reformed current 
laws governing the de-Baathification process to allow for more 
equitable treatment of individuals affected by such laws; amended the 
Constitution of Iraq consistent with the principles contained in 
Article 137 of such constitution; and allocated and begun expenditure 
of $10,000,000,000 in Iraqi revenues for reconstruction projects, 
including delivery of essential services, on an equitable basis.
    (g) The requirement to withhold funds from obligation pursuant to 
subsection (f) shall not apply with respect to funds made available 
under the heading ``Economic Support Fund'' for continued support for 
the Community Action Program and Community Stabilization Program in 
Iraq administered by the United States Agency for International 
Development or for programs and activities to promote democracy in 
Iraq.
    (h) Beginning on September 1, 2007, 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 regarding the criteria set forth in subsection (a).

                                TITLE II

           ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                    GENERAL PROVISION--THIS CHAPTER

    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 
as in effect on September 30, 2006, notwithstanding the provisions of 
section 511 of said Act, $50,000,000, to remain available until 
expended: Provided, That the amount made available under this heading 
shall be for local law enforcement initiatives in the Gulf Coast region 
related to the aftermath of Hurricanes Katrina and Rita: Provided 
further, That these funds shall be apportioned among the States in 
quotient to their level of violent crime as estimated by the Federal 
Bureau of Investigation's Uniform Crime Report for the year 2005.

                         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 the consequences of 
Hurricanes Katrina and Rita on the shrimp and fishing industries, 
$110,000,000, to remain available until September 30, 2008.

             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                        exploration capabilities

    For an additional amount for ``Exploration Capabilities'' for 
necessary expenses related to the consequences of Hurricane Katrina, 
$35,000,000, to remain available until September 30, 2009.

                    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, $25,300,000, 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.


                  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, $1,407,700,000, 
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 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 $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 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: Provided further, That the Chief of Engineers, 
acting through the Assistant Secretary of the Army for Civil Works, 
shall provide a monthly report to the House and Senate Committees on 
Appropriations detailing the allocation and obligation of these funds, 
beginning not later than 60 days after enactment of this Act.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 2301. The Secretary is authorized and directed to determine 
the value of eligible reimbursable expenses incurred by local 
governments in storm-proofing pumping stations, constructing safe 
houses for operators, and other interim flood control measures in and 
around the New Orleans metropolitan area that the Secretary determines 
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. (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, subject to the 
approval of the House and Senate Committees on Appropriation.
    Sec. 2303. 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. 2304. Using funds made available in Chapter 3 under title II 
of Public Law 109-234, 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.

                               CHAPTER 4

                     SMALL BUSINESS ADMINISTRATION

                     Disaster Loans Program Account


                      (including transfer of funds)

    Of the unobligated balances under the heading ``Small Business 
Administration, Disaster Loans Program Account'', $25,069,000, to 
remain available until expended, shall be used for administrative 
expenses to carry out the disaster loan program, which may be 
transferred to and merged with ``Small Business Administration, 
Salaries and Expenses''.
    Of the unobligated balances under the heading ``Small Business 
Administration, Disaster Loans Program Account'', $25,000,000 shall be 
used for loans under section 7(b)(2) of the Small Business Act for 
businesses located in an area for which the President declared a major 
disaster because of the hurricanes in the Gulf of Mexico in calendar 
year 2005, of which not to exceed $8,750,000 is for direct 
administrative expenses and may be transferred to and merged with 
``Small Business Administration, Salaries and Expenses'' to carry out 
the disaster loan program of the Small Business Administration.

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                  Federal Emergency Management Agency


                             DISASTER RELIEF

                      (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Disaster Relief'', $4,610,000,000, 
to remain available until expended: Provided, That $4,000,000 shall be 
transferred to ``Office of Inspector General''.

                    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, Florida, Alabama, and Texas in connection with 
Hurricanes Katrina, Wilma, Dennis, 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.--The Federal share provided by subsection (a) 
shall apply to disaster assistance applied for before the date of 
enactment of this Act.
    Sec. 2502. (a) Community Disaster Loan Act.--
        (1) In general.--Section 2(a) of the Community Disaster Loan 
    Act of 2005 (Public Law 109-88) is amended by striking ``Provided 
    further, That notwithstanding section 417(c)(1) of the Stafford 
    Act, such loans may not be canceled:''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    be effective on the date of enactment of the Community Disaster 
    Loan Act of 2005 (Public Law 109-88).
    (b) Emergency Supplemental Appropriations Act.--
        (1) In general.--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) is 
    amended under Federal Emergency Management Agency, ``Disaster 
    Assistance Direct Loan Program Account'' by striking ``Provided 
    further, That notwithstanding section 417(c)(1) of such Act, such 
    loans may not be canceled:''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    be effective on the date of enactment of the Emergency Supplemental 
    Appropriations Act for Defense, the Global War on Terror, and 
    Hurricane Recovery, 2006 (Public Law 109-234).
    Sec. 2503. (a) In General.--Section 2401 of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on Terror, 
and Hurricane Recovery, 2006 (Public Law 109-234) is amended by 
striking ``12 months'' and inserting ``24 months''.
    (b) Effective Date.--The amendment made by this section shall be 
effective on the date of enactment of the Emergency Supplemental 
Appropriations Act for Defense, the Global War on Terror, and Hurricane 
Recovery, 2006 (Public Law 109-234).

                               CHAPTER 6

                       DEPARTMENT OF THE INTERIOR

                         National Park Service


                        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, $10,000,000, 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.

                    GENERAL PROVISION--THIS CHAPTER


                      (including transfer of funds)

    Sec. 2601. Of the 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 that were allocated to the State of Mississippi by the 
National Park Service, $500,000 is hereby transferred to the ``National 
Park Service--National Recreation and Preservation'' appropriation: 
Provided, That these funds 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 further, That the State Historic Preservation 
Officer certifies that, for the community where that destroyed property 
was located, 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 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 101 or section 102(c) 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 Katrina or Rita, 
$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, school 
principals, assistant principals, principal resident directors, 
assistant directors, and other educators, who commit to work for at 
least three years in school-based 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, signing bonuses, and relocation costs and providing loan 
forgiveness, with priority given to teachers and school-based school 
principals, assistant principals, principal resident directors, 
assistant directors, and other educators who previously worked or lived 
in one of the affected areas, are currently employed (or become 
employed) in such a school in any of the affected areas after those 
disasters, and commit to continue that employment for at least 3 years, 
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, knowledge, and skill of teachers and school-based school 
principals, assistant principals, principal resident directors, 
assistant directors, and other educators in 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-based school principals, 
assistant principals, principal resident directors, and assistant 
directors; 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 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 Superintendent of Education: Provided further, 
That, in the case of any 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 in collaboration with 
local educational agencies, teachers' unions, local principals' 
organizations, local parents' organizations, local business 
organizations, and local charter schools organizations, the State 
educational agency shall develop a plan for a rating system for 
performance bonuses, and if no agreement has been reached that is 
satisfactory to all consulting entities by such deadline, the State 
educational agency shall immediately send a letter notifying Congress 
and shall, not later than 30 days after such notification, establish 
and implement a rating system that shall be based on classroom 
observation and feedback more than once annually, conducted by multiple 
sources (including, but not limited to, principals and master 
teachers), and evaluated against research-based rubrics that use 
planning, instructional, and learning environment standards to measure 
teacher performance, except that the requirements of this proviso shall 
not apply to a State that has enacted a State law in 2006 authorizing 
performance pay for teachers.


                  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, school principals, assistant principals, principal 
resident directors, assistant directors, and other educators for 
school-based positions in public elementary and secondary schools 
impacted by Hurricane Katrina or Hurricane Rita, including through such 
mechanisms as paying salary premiums, performance bonuses, housing 
subsidies, signing bonuses, and relocation costs and providing loan 
forgiveness; (2) activities to build the capacity, knowledge, and 
skills of teachers and school-based school principals, assistant 
principals, principal resident directors, assistant directors, and 
other educators in such public elementary and secondary schools to 
provide an effective education, including the design, adaptation, and 
implementation of high-quality formative assessments; (3) the 
establishment of partnerships with nonprofit entities with a 
demonstrated track record in recruiting and retaining outstanding 
teachers and school-based school principals, assistant principals, 
principal resident directors, and assistant directors; and (4) paid 
release time for teachers and principals to identify and replicate 
successful practices from the fastest-improving and highest-performing 
schools.

                    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.''.
    Sec. 2702. 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 2009.
    Sec. 2703. (a) In the event that Louisiana, Mississippi, Alabama, 
or Texas fails to meet its match requirement with funds appropriated in 
fiscal years 2006 or 2007, for fiscal years 2008 and 2009, the 
Secretary of Health and Human Services may waive the application of 
section 2617(d)(4) of the Public Health Service Act for Louisiana, 
Mississippi, Alabama, and Texas.
    (b) The Secretary may not exercise the waiver authority available 
under subsection (a) to allow a grantee to provide less than a 25 
percent matching grant.
    (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

                      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, 
$682,942,000, to remain available until expended: Provided, That 
section 125(d)(1) of title 23, United States Code, shall not apply to 
emergency relief projects that respond to damage caused by the 2005-
2006 winter storms in the State of California: Provided further, That 
of the unobligated balances of funds apportioned to each State under 
chapter 1 of title 23, United States Code, $682,942,000 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.

                     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, $35,000,000, 
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, $7,000,000, to remain available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 2801. The third proviso under the heading ``Department of 
Housing and Urban Development--Public and Indian Housing--Tenant-Based 
Rental Assistance'' in chapter 9 of title I of division B of Public Law 
109-148 (119 Stat. 2779) is amended by striking ``for up to 18 months'' 
and inserting ``until December 31, 2007''.
    Sec. 2802. 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 specified in category 1 
below shall receive funding for calendar year 2007 based on the higher 
of the amounts the agencies would receive under the previous proviso or 
the amounts the agencies received in calendar year 2006, and public 
housing agencies specified in categories 2 and 3 below shall receive 
funding for calendar year 2007 equal to the amounts the agencies 
received in calendar year 2006, except that public housing agencies 
specified in categories 1 and 2 below shall receive funding under this 
proviso only if, and to the extent that, any such public housing agency 
submits a plan, approved by the Secretary, that demonstrates that the 
agency can effectively use within 12 months the funding that the agency 
would receive under this proviso that is in addition to the funding 
that the agency would receive under the previous proviso: (1) public 
housing agencies that are eligible for assistance under section 901 in 
Public Law 109-148 (119 Stat. 2781) or are located in the same counties 
as those eligible under section 901 and operate voucher programs under 
section 8(o) of the U.S. Housing Act of 1937 but do not operate public 
housing under section 9 of such Act, and any public housing agency that 
otherwise qualifies under this category must demonstrate that they have 
experienced a loss of rental housing stock as a result of the 2005 
hurricanes; (2) public housing agencies that would receive less funding 
under the previous proviso than they would receive under this proviso 
and that have been placed in receivership or the Secretary has declared 
to be in breach of an Annual Contributions Contract by June 1, 2007; 
and (3) public housing agencies that spent more in calendar year 2006 
than the total of the amounts of any such public housing agency's 
allocation amount for calendar year 2006 and the amount of any such 
public housing agency's available housing assistance payments 
undesignated funds balance from calendar year 2005 and the amount of 
any such public housing agency's available administrative fees 
undesignated funds balance through calendar year 2006''.
    Sec. 2803. Section 901 of Public Law 109-148 is amended by deleting 
``calendar year 2006'' and inserting ``calendar years 2006 and 2007''.

                               TITLE III

                     OTHER EMERGENCY APPROPRIATIONS

                               CHAPTER 1

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                   OPERATIONS, RESEARCH, AND FACILITIES

    For an additional amount for ``Operations, Research, and 
Facilities'', $60,400,000, to remain available until September 30, 
2008: Provided, That the National Marine Fisheries Service shall cause 
such amounts 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.

                               CHAPTER 2

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                        operation and maintenance

    For an additional amount for ``Operation and Maintenance'' to 
dredge navigation channels related to the consequences of 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), to support emergency operations, repairs and other 
activities in response to flood, drought and earthquake emergencies as 
authorized by law, $150,000,000, to remain available until expended: 
Provided, That the Chief of Engineers, acting through the Assistant 
Secretary of the Army for Civil Works, shall provide a monthly report 
to the House and Senate Committees on Appropriations detailing the 
allocation and obligation of these funds, beginning not later than 60 
days after enactment of this Act.

                       DEPARTMENT OF THE 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.

                               CHAPTER 3

                       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.

                    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 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 PROVISION--THIS CHAPTER

    Sec. 3301. (a) For fiscal year 2007, payments shall be made from 
any revenues, fees, penalties, or miscellaneous receipts described in 
sections 102(b)(3) and 103(b)(2) of the Secure Rural Schools and 
Community Self-Determination Act of 2000 (Public Law 106-393; 16 U.S.C. 
500 note), not to exceed $100,000,000, and the payments shall be made, 
to the maximum extent practicable, in the same amounts, for the same 
purposes, and in the same manner as were made to States and counties in 
2006 under that Act.
    (b) There is appropriated $425,000,000, to remain available until 
December 31, 2007, to be used to cover any shortfall for payments made 
under this section from funds not otherwise appropriated.
    (c) Titles II and III of Public Law 106-393 are amended, effective 
September 30, 2006, by striking ``2006'' and ``2007'' each place they 
appear and inserting ``2007'' and ``2008'', respectively.

                               CHAPTER 4

                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.
    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 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), $50,000,000, to remain available until expended.

                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)), $200,000,000.
    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)), $200,000,000.

                        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, 
$625,000,000, 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)), $25,000,000, to remain available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER


                         (including rescissions)

    Sec. 3401. (a). From unexpended balances available for the Training 
and Employment Services account under the Department of Labor, the 
following amounts are hereby rescinded--
        (1) $3,589,000 transferred pursuant to the 2001 Emergency 
    Supplemental Appropriations Act for Recovery from and Response to 
    Terrorist Attacks on the United States (Public Law 107-38);
        (2) $834,000 transferred pursuant to the Emergency Supplemental 
    Appropriations Act of 1994 (Public Law 103-211); and
        (3) $71,000 for the Consortium for Worker Education pursuant to 
    the Emergency Supplemental Act, 2002 (Public Law 107-117).
    (b) From unexpended balances available for the State Unemployment 
Insurance and Employment Service Operations account under the 
Department of Labor pursuant to the Emergency Supplemental Act, 2002 
(Public Law 107-117), $4,100,000 are hereby rescinded.
    Sec. 3402. (a) For an additional amount under ``Department of 
Education, Safe Schools and Citizenship Education'', $8,594,000 shall 
be available for Safe and Drug-Free Schools National Programs for 
competitive grants to local educational agencies to address youth 
violence and related issues.
    (b) The competition under subsection (a) 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.

                               CHAPTER 5

                           LEGISLATIVE BRANCH

                        ARCHITECT OF THE CAPITOL

                          Capitol Power Plant

    For an additional amount for ``Capitol Power Plant'', $50,000,000, 
for 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.

                               CHAPTER 6

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration


                             MEDICAL SERVICES

    For an additional amount for ``Medical Services'', $466,778,000, to 
remain available until expended, of which $30,000,000 shall be for the 
establishment of at least one new Level I comprehensive polytrauma 
center; $9,440,000 shall be for the establishment of polytrauma 
residential transitional rehabilitation programs; $10,000,000 shall be 
for additional transition caseworkers; $20,000,000 shall be for 
substance abuse treatment programs; $20,000,000 shall be 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 shall be for additional polytrauma points of contact; 
$228,982,000 shall be for treatment of Operation Enduring Freedom and 
Operation Iraqi Freedom veterans; and $25,000,000 shall be for 
prosthetics.


                          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 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 not subject to the Veterans Equitable Resource 
Allocation: 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, by project, for non-
recurring maintenance prior to obligation: Provided further, That semi-
annually, on October 1 and April 1, the Secretary shall submit to the 
Committees on Appropriations of both Houses of Congress a report on the 
status of funding for non-recurring maintenance, including obligations 
and unobligated balances for each project identified in the expenditure 
plan.


                     MEDICAL AND PROSTHETIC RESEARCH

    For an additional amount for ``Medical and Prosthetic Research'', 
$32,500,000, 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

                      (including transfer of funds)

    For an additional amount for ``General Operating Expenses'', 
$83,200,000, to remain available until expended, of which $1,250,000 
shall be for digitization of military records; $60,750,000 shall be for 
expenses related to hiring and training new claims processing 
personnel; up to $1,200,000 for an independent study of the 
organizational structure, management and coordination processes, 
including seamless transition, utilized by the Department of Veterans 
Affairs to provide health care and benefits to active duty personnel 
and veterans, including those returning Operation Enduring Freedom and 
Operation Iraqi Freedom veterans; and $20,000,000 shall be for 
disability examinations: Provided, That not to exceed $1,250,000 of the 
amount appropriated under this heading may be transferred to the 
Department of Defense for the digitization of military records used to 
verify stressors for benefits claims.


                      INFORMATION TECHNOLOGY SYSTEMS

    For an additional amount for ``Information Technology Systems'', 
$35,100,000, to remain available until expended, of which $20,000,000 
shall be for information technology support and improvements for 
processing of Operation Enduring Freedom and Operation Iraqi Freedom 
veterans benefits claims, including making electronic Department of 
Defense medical records available for claims processing and enabling 
electronic benefits applications by veterans; and $15,100,000 shall be 
for electronic data breach remediation and prevention.


                       CONSTRUCTION, MINOR PROJECTS

    For an additional amount for ``Construction, Minor Projects'', 
$326,000,000, to remain available until expended, of which up to 
$36,000,000 shall be for construction costs associated with the 
establishment of polytrauma residential transitional rehabilitation 
programs.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 3601. 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.
    Sec. 3602. Notwithstanding any other provision of law, 
appropriations made by Public Law 110-5, 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.
    Sec. 3603. (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.

                                TITLE IV

                             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, $37,500,000, to remain available until September 30, 
2008: Provided, That this amount shall only be available for network 
and database/application stabilization.

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 4101. Of the funds made available through appropriations to 
the Food and Drug Administration for fiscal year 2007, not less than 
$4,000,000 shall be for the Office of Women's Health of such 
Administration.
    Sec. 4102. None of the funds made available to the Department of 
Agriculture for fiscal year 2007 may be used to implement the risk-
based inspection program in the 30 prototype locations announced on 
February 22, 2007, by the Under Secretary for Food Safety, or at any 
other locations, until the USDA Office of Inspector General has 
provided its findings to the Food Safety and Inspection Service and the 
Committees on Appropriations of the House of Representatives and the 
Senate on the data used in support of the development and design of the 
risk-based inspection program and FSIS has addressed and resolved 
issues identified by OIG.

                               CHAPTER 2

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 4201. 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. 4202. 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. 4301. (a) Section 102(a)(3)(B) of the Help America Vote Act of 
2002 (42 U.S.C. 15302(a)(3)(B)) is amended by striking ``January 1, 
2006'' and inserting ``March 1, 2008''.
    (b) The amendment made by subsection (a) shall take effect as if 
included in the enactment of the Help America Vote Act of 2002.
    Sec. 4302. 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. 4303. 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. 4304. 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. 4305. (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 Committee on Appropriations, the 
Senate Committee on Banking, Housing, and Urban Affairs, the House 
Committee on Financial Services, the Senate Foreign Relations 
Committee, and the House Foreign Affairs Committee a written report, 
which may include a classified annex, containing the names of companies 
which either directly or through a parent or subsidiary company, 
including partly-owned subsidiaries, are known to conduct significant 
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 45 days following the submission to Congress of 
the list of companies conducting business operations in Sudan relating 
to natural resource extraction as 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, which may include a classified annex, regarding 
the companies, nature of the contract, and dollar amounts involved.


                          (including rescission)

    Sec. 4306. (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), $4,500,000 are rescinded.
    (b) For an additional amount for the General Services 
Administration, ``Office of Inspector General'', $4,500,000, to remain 
available until September 30, 2008.
    Sec. 4307. 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.''.

                               CHAPTER 4

                    DEPARTMENT OF HOMELAND SECURITY

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 4401. Not to exceed $30,000,000 from 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. 4402. (a) In General.--Any contract, subcontract, task or 
delivery order described in subsection (b) shall contain the following:
        (1) A requirement for a technical review of all designs, design 
    changes, and engineering change proposals, and a requirement to 
    specifically address all engineering concerns identified in the 
    review before the obligation of further funds may occur.
        (2) A requirement that the Coast Guard maintain technical 
    warrant holder authority, or the equivalent, for major assets.
        (3) A requirement that no procurement subject to subsection (b) 
    for lead asset production or the implementation of a major design 
    change shall be entered into unless an independent third party with 
    no financial interest in the development, construction, or 
    modification of any component of the asset, selected by the 
    Commandant, determines that such action is advisable.
        (4) A requirement for independent life-cycle cost estimates of 
    lead assets and major design and engineering changes.
        (5) A requirement for the measurement of contractor and 
    subcontractor performance based on the status of all work 
    performed. For contracts under the Integrated Deepwater Systems 
    program, such requirement shall include a provision that links 
    award fees to successful acquisition outcomes (which shall be 
    defined in terms of cost, schedule, and performance).
        (6) A requirement that the Commandant of the Coast Guard assign 
    an appropriate officer or employee of the Coast Guard to act as 
    chair of each integrated product team and higher-level team 
    assigned to the oversight of each integrated product team.
        (7) A requirement that 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 a procurement subject 
    to subsection (b) unless the Coast Guard and the contractor 
    concerned have formally agreed to all terms and conditions or the 
    head of contracting activity for the Coast Guard determines that a 
    compelling need exists for the award or issue of such instrument.
    (b) Contracts, Subcontracts, Task and Delivery Orders Covered.--
Subsection (a) applies to--
        (1) any major procurement contract, first-tier subcontract, 
    delivery or task order entered into by the Coast Guard;
        (2) any first-tier subcontract entered into under such a 
    contract; and
        (3) any task or delivery order issued pursuant to such a 
    contract or subcontract.
    (c) Expenditure of Deepwater Funds.--Of the funds available for the 
Integrated Deepwater Systems program, $650,000,000 may not be obligated 
until the Committees on Appropriations of the Senate and the House of 
Representatives receive an expenditure plan directly from the Coast 
Guard that--
        (1) defines activities, milestones, yearly costs, and life-
    cycle costs for each procurement of a major asset, including an 
    independent cost estimate for each;
        (2) identifies life-cycle staffing and training needs of Coast 
    Guard project managers and of procurement and contract staff;
        (3) identifies competition to be conducted in each procurement;
        (4) describes procurement plans that do not rely on a single 
    industry entity or contract;
        (5) contains very limited indefinite delivery/indefinite 
    quantity contracts and explains the need for any indefinite 
    delivery/indefinite quantity contracts;
        (6) complies with all applicable acquisition rules, 
    requirements, and guidelines, and incorporates the best systems 
    acquisition management practices of the Federal Government;
        (7) complies with the capital planning and investment control 
    requirements established by the Office of Management and Budget, 
    including circular A-11, part 7;
        (8) includes a certification by the head of contracting 
    activity for the Coast Guard and the Chief Procurement Officer of 
    the Department of Homeland Security that the Coast Guard has 
    established sufficient controls and procedures and has sufficient 
    staffing to comply with all contracting requirements, and that any 
    conflicts of interest have been sufficiently addressed;
        (9) includes a description of the process used to act upon 
    deviations from the contractually specified performance 
    requirements and clearly explains the actions taken on such 
    deviations;
        (10) includes a certification that the Assistant Commandant of 
    the Coast Guard for Engineering and Logistics is designated as the 
    technical authority for all engineering, design, and logistics 
    decisions pertaining to the Integrated Deepwater Systems program; 
    and
        (11) identifies progress in complying with the requirements of 
    subsection (a).
    (d) Reports.--(1) Not later than 30 days after the date of 
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: (i) 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 Systems program; and (ii) a report on how the Coast Guard 
will utilize full and open competition for any contract that provides 
for the acquisition or modification of assets under, or in support of, 
the Integrated Deepwater Systems program, entered into after the date 
of enactment of this Act.
    (2) Within 30 days following the submission of the expenditure plan 
required under subsection (c), the Government Accountability Office 
shall review the plan and brief the Committees on Appropriations of the 
Senate and the House of Representatives on its findings.
    Sec. 4403. 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.


                     (including rescissions of funds)

    Sec. 4404. (a) Rescissions.--The following unobligated balances 
made available pursuant to section 505 of Public Law 109-90 are 
rescinded: $1,200,962 from the ``Office of the Secretary and Executive 
Management''; $512,855 from the ``Office of the Under Secretary for 
Management''; $461,874 from the ``Office of the Chief Information 
Officer''; $45,080 from the ``Office of the Chief Financial Officer''; 
$968,211 from Preparedness ``Management and Administration''; 
$1,215,486 from Science and Technology ``Management and 
Administration''; $450,000 from United States Secret Service ``Salaries 
and Expenses''; $450,000 from Federal Emergency Management Agency 
``Administrative and Regional Operations''; and $25,595,532 from United 
States Coast Guard ``Operating Expenses''.
    (b) Additional Appropriations.--
        (1) For an additional amount for United States Coast Guard 
    ``Acquisition, Construction, and Improvements'', $30,000,000, to 
    remain available until September 30, 2009, to mitigate the 
    Service's patrol boat operational gap; and
        (2) For an additional amount for the ``Office of the Under 
    Secretary for Management'', $900,000, for an independent study to 
    compare the Department of Homeland Security senior career and 
    political staffing levels and senior career training programs with 
    those of similarly structured cabinet-level agencies.
    Sec. 4405. (a) In General.--With respect to contracts entered into 
after June 1, 2007, and except as provided in subsection (b), no entity 
performing lead system integrator functions in the acquisition of a 
major system by the Department of Homeland Security may have any direct 
financial interest in the development or construction of any individual 
system or element of any system of systems.
    (b) Exception.--An entity described in subsection (a) may have a 
direct financial interest in the development or construction of an 
individual system or element of a system of systems if--
        (1) the Secretary of Homeland Security certifies to the 
    Committees on Appropriations of the Senate and the House of 
    Representatives, the Committee on Homeland Security of the House of 
    Representatives, the Committee on Transportation and Infrastructure 
    of the House of Representatives, the Committee on Homeland Security 
    and Governmental Affairs of the Senate, and the Committee on 
    Commerce, Science and Transportation of the Senate that--
            (A) the entity was selected by the Department of Homeland 
        Security as a contractor to develop or construct the system or 
        element concerned through the use of competitive procedures; 
        and
            (B) the Department took appropriate steps to prevent any 
        organizational conflict of interest in the selection process; 
        or
        (2) the entity was selected by a subcontractor to serve as a 
    lower-tier subcontractor, through a process over which the entity 
    exercised no control.
    (c) Construction.--Nothing in this section shall be construed to 
preclude an entity described in subsection (a) from performing work 
necessary to integrate two or more individual systems or elements of a 
system of systems with each other.
    (d) Regulations Update.--Not later than June 1, 2007, the Secretary 
of Homeland Security shall update the acquisition regulations of the 
Department of Homeland Security in order to specify fully in such 
regulations the matters with respect to lead system integrators set 
forth in this section. Included in such regulations shall be: (1) a 
precise and comprehensive definition of the term ``lead system 
integrator'', modeled after that used by the Department of Defense; and 
(2) a specification of various types of contracts and fee structures 
that are appropriate for use by lead system integrators in the 
production, fielding, and sustainment of complex systems.

                               CHAPTER 5

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 4501. 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. 4502. 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. 4503. 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'' the 
following: ``of which $13,000,000 shall be for Save America's 
Treasures''.
    Sec. 4504. Funds made available to the United States Fish and 
Wildlife Service for fiscal year 2007 under the heading ``Land 
Acquisition'' may be used for land conservation partnerships authorized 
by the Highlands Conservation Act of 2004.

                               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 (division B of Public Law 109-289, as amended by Public Law 110-5) 
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.


                          OFFICE OF THE DIRECTOR

                           (Transfer of Funds)

    Of the amount provided by the Continuing Appropriations Resolution, 
2007 (division B of Public Law 109-289, as amended by Public Law 110-5) 
for ``Office of the Director'', $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.


                      NATIONAL COUNCIL ON DISABILITY

                          Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'', $300,000, 
to remain available until expended, for necessary expenses related to 
the requirements of the Post-Katrina Emergency Management Reform Act of 
2006, as enacted by the Department of Homeland Security Appropriations 
Act, 2007 (Public Law 109-295).

                    GENERAL PROVISIONS--THIS CHAPTER


              (including TRANSFERs OF FUNDS and rescission)

    Sec. 4601. 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), to remain available through September 
30, 2008,''.
    Sec. 4602. Section 20607 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109-289, as amended by 
Public Law 110-5) is amended by inserting ``of which $9,666,000 shall 
be for the Women's Bureau,'' after ``for child labor activities,''.
    Sec. 4603. Of the amount provided for ``Department of Health and 
Human Services, Health Resources and Services Administration, Health 
Resources and Services'' in the Continuing Appropriations Resolution, 
2007 (division B of Public Law 109-289, as amended by Public Law 110-
5), $23,000,000 shall be for Poison Control Centers.
    Sec. 4604. From the amounts made available by the Continuing 
Appropriations Resolution, 2007 (division B of Public Law 109-289, as 
amended by 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.
    Sec. 4605. 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. 4606. 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.
    Sec. 4607. 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. 4608. (a) Section 1310.12(a) of title 45, Code of Federal 
Regulations, shall take effect 30 days after the date of enactment of 
this Act.
    (b)(1) Notwithstanding subsection (a), any vehicle used to 
transport children for a Head Start program as of January 1, 2007, 
shall not be subject to a requirement under such section (including a 
requirement based on the definitions set forth or referenced in section 
1310.3 or any other provision set forth or referenced in part 1310 of 
such title, or any corresponding similar regulation or ruling) 
regarding rear emergency exit doors, for 1 year after that date of 
enactment.
    (2) Not later than 60 days after the National Highway Traffic 
Safety Administration of the Department of Transportation submits its 
study on occupant protection on Head Start transit vehicles (related to 
Government Accountability Office report GAO-06-767R), the Secretary of 
Health and Human Services shall review and shall revise as necessary 
the allowable alternate vehicle standards described in that part 1310 
(or any corresponding similar regulation or ruling) relating to 
allowable alternate vehicles used to transport children for a Head 
Start program. In making any such revision, the Secretary shall revise 
the standards to be consistent with the findings contained in such 
study, including making a determination on the exemption of such a 
vehicle from Federal seat spacing requirements, and Federal supporting 
seating requirements related to compartmentalization, if such vehicle 
meets all other applicable Federal motor vehicle safety standards, 
including 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).
    (3) Notwithstanding subsection (a), until such date as the 
Secretary of Health and Human Services completes the review and any 
necessary revision specified in paragraph (2), the provisions of 
section 1310.12(a) relating to Federal seat spacing requirements, and 
Federal supporting seating requirements related to 
compartmentalization, for allowable alternate vehicles used to 
transport children for a Head Start program, shall not apply to such a 
vehicle if such vehicle meets all other applicable Federal motor 
vehicle safety standards, as described in paragraph (2).

                               CHAPTER 7

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

      Payment to Widows and Heirs of Deceased Members of Congress

    For payment to Gloria W. Norwood, widow of Charles W. Norwood, Jr., 
late a Representative from the State of Georgia, $165,200.

                               CHAPTER 8

                    GENERAL PROVISIONS--THIS CHAPTER


                           TECHNICAL AMENDMENT

    Sec. 4801. (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.
    Sec. 4802. Notwithstanding any provision of title I of division B 
of the Continuing Appropriations Resolution, 2007 (division B of Public 
Law 109-289, as amended by Public Laws 109-369, 109-383, and 110-5), 
the dollar amount limitation of the first proviso under the heading, 
``Administration of Foreign Affairs, Diplomatic and Consular 
Programs'', in title IV of the Science, State, Justice, Commerce, and 
Related Agencies Appropriations Act, 2006 (Public Law 109-108; 119 
Stat. 2319) shall not apply to funds appropriated under such heading 
for fiscal year 2007.

                               CHAPTER 9

              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, $6,150,000, 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. 4901. 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. 4902. Funds provided for the ``National Transportation Safety 
Board, Salaries and Expenses'' in section 21031 of the Continuing 
Appropriations Resolution, 2007 (division B of Public Law 109-289, as 
amended by Public Law 110-5) include amounts necessary to make lease 
payments due in fiscal year 2007 only, on an obligation incurred in 
2001 under a capital lease.
    Sec. 4903. 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. 4904. Section 232(b) of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2001 (Public Law 106-377) is amended to read as 
follows:
    ``(b) Applicability.--In the case of any dwelling unit that, upon 
the date of the enactment of this Act, is assisted under a housing 
assistance payment contract under section 8(o)(13) as in effect before 
such enactment, or under section 8(d)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(d)(2)) as in effect before the enactment 
of the Quality Housing and Work Responsibility Act of 1998 (title V of 
Public Law 105-276), assistance may be renewed or extended under such 
section 8(o)(13), as amended by subsection (a), provided that the 
initial contract term and rent of such renewed or extended assistance 
shall be determined pursuant to subparagraphs (F) and (H), and 
subparagraphs (C) and (D) of such section shall not apply to such 
extensions or renewals.''.

                               CHAPTER 10

                      GENERAL PROVISIONS--THIS ACT


                          AVAILABILITY OF FUNDS

    Sec. 4950. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.


                         DESIGNATION FOR TITLE I

    Sec. 4951. Amounts in title I are designated as emergency 
requirements pursuant to section 402 of H. Con. Res. 95 (109th 
Congress), and as making appropriations for contingency operations 
directly related to the global war on terrorism and other unanticipated 
defense-related operations pursuant to section 402 of H. Con. Res. 376 
(109th Congress) as made applicable to the House of Representatives by 
section 511(a)(4) of H. Res. 6 (110th Congress).


                  EMERGENCY DESIGNATION FOR OTHER TITLES

    Sec. 4952. Amounts in titles II, III, V, and VI are designated as 
emergency requirements pursuant to section 402 of H. Con. Res. 95 
(109th Congress), and pursuant to section 501 of H. Con. Res. 376 
(109th Congress) as made applicable to the House of Representatives by 
section 511(a)(4) of H. Res. 6 (110th Congress).

                                TITLE V

                        AGRICULTURAL ASSISTANCE

SEC. 5101. CROP DISASTER ASSISTANCE.

    (a) Assistance Available.--There are hereby appropriated to the 
Secretary of Agriculture such sums as are necessary, to remain 
available until expended, to make emergency financial assistance 
available to producers on a farm that incurred qualifying quantity or 
quality losses for the 2005 or 2006 crop, or that part of the 2007 crop 
year before February 28, 2007, due to damaging weather or any related 
condition (including losses due to crop diseases, insects, and delayed 
planting), as determined by the Secretary. However, to be eligible for 
assistance, the crop subject to the loss must have been planted before 
February 28, 2007 or, in the case of prevented planting or other total 
loss, would have been planted before February 28, 2007 in the absence 
of the damaging weather or any related condition.
    (b) Election of Crop Year.--If a producer incurred qualifying crop 
losses in more than one of the 2005, 2006, or 2007 crop years, the 
producer shall elect to receive assistance under this section for 
losses incurred in only one of such crop years. The producer may not 
receive assistance under this section for more than one crop year.
    (c) Administration.--
        (1) In general.--Except as provided in paragraph (2), the 
    Secretary of Agriculture 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 50 percent of the 
    established price, instead of 65 percent.
        (2) Loss thresholds for quality losses.--In the case of a 
    payment for quality loss for a crop under subsection (a), the loss 
    thresholds for quality loss for the crop shall be determined under 
    subsection (d).
    (d) Quality Losses.--
        (1) In general.--Subject to paragraph (3), the amount of a 
    payment made to producers on a farm for a quality loss for a crop 
    under subsection (a) shall be equal to the amount obtained by 
    multiplying--
            (A) 65 percent of the payment quantity determined under 
        paragraph (2); by
            (B) 50 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) the quantity of expected production of the crop 
        affected by a quality loss of the commodity on the farm, using 
        the formula used by the Secretary of Agriculture to determine 
        quantity losses for the crop of the commodity under subsection 
        (a).
        (3) Payment rate.--For the purpose of paragraph (1)(B) and in 
    accordance with paragraphs (5) and (6), the payment rate for 
    quality losses for a crop of a commodity on a farm shall be equal 
    to the difference between--
            (A) 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
            (B) the per unit market value of the units of the crop 
        affected by the quality loss.
        (4) Eligibility.--For producers on a farm to be eligible to 
    obtain a payment for a quality loss for a crop under subsection 
    (a), 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 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.
        (5) Marketing contracts.--In the case of any production of a 
    commodity that is sold pursuant to one or more marketing contracts 
    (regardless of whether the contract is entered into by the 
    producers on the farm before or after harvest) and for which 
    appropriate documentation exists, the quantity designated in the 
    contracts shall be eligible for quality loss assistance based on 
    the one or more prices specified in the contracts.
        (6) Other production.--For any additional production of a 
    commodity for which a marketing contract does not exist or for 
    which production continues to be owned by the producer, quality 
    losses shall be based on the average local market discounts for 
    reduced quality, as determined by the appropriate State committee 
    of the Farm Service Agency.
        (7) Quality adjustments and discounts.--The appropriate State 
    committee of the Farm Service Agency shall identify the appropriate 
    quality adjustment and discount factors to be considered in 
    carrying out this subsection, including--
            (A) the average local discounts actually applied to a crop; 
        and
            (B) the discount schedules applied to loans made by the 
        Farm Service Agency or crop insurance coverage under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
        (8) Eligible production.--The Secretary of Agriculture 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) Payment Limitations.--
        (1) Limit on amount of assistance.--Assistance provided under 
    this section to a producer 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 of 
    Agriculture.
        (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 producer receives for losses to 
        the same crop.
            (B) The value of the crop that was not lost (if any), as 
        estimated by the Secretary.
    (f) Eligibility Requirements and Limitations.--The producers on a 
farm shall not be eligible for assistance under this section with 
respect to losses to an insurable commodity or noninsurable commodity 
if the producers on the farm--
        (1) in the case of an insurable commodity, did not obtain a 
    policy or plan of insurance for the insurable commodity under the 
    Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the crop 
    incurring the losses;
        (2) in the case of a noninsurable commodity, did not file the 
    required paperwork, and pay the administrative fee by the 
    applicable State filing deadline, for the noninsurable commodity 
    under section 196 of the Federal Agriculture Improvement and Reform 
    Act of 1996 (7 U.S.C. 7333) for the crop incurring the losses; or
        (3) were not in compliance with highly erodible land 
    conservation and wetland conservation provisions.
    (g) Timing.--
        (1) In general.--Subject to paragraph (2), the Secretary of 
    Agriculture 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.
    (h) Definitions.--In this section:
        (1) 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.).
        (2) 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).

SEC. 5102. LIVESTOCK ASSISTANCE.

    (a) Livestock Compensation Program.--
        (1) Availability of assistance.--There are hereby appropriated 
    to the Secretary of Agriculture such sums as are necessary, to 
    remain available until expended, to carry out the livestock 
    compensation program established under subpart B of part 1416 of 
    title 7, Code of Federal Regulations, as announced by the Secretary 
    on February 12, 2007 (72 Fed. Reg. 6443), to provide compensation 
    for livestock losses between January 1, 2005 and February 28, 2007, 
    due to a disaster, as determined by the Secretary (including losses 
    due to blizzards that started in 2006 and continued into January 
    2007). However, the payment rate for compensation under this 
    subsection shall be 70 percent of the payment rate otherwise 
    applicable under such program. In addition, section 
    1416.102(b)(2)(ii) of title 7, Code of Federal Regulations (72 Fed. 
    Reg. 6444) shall not apply.
        (2) Eligible applicants.--In carrying out the program described 
    in paragraph (1), the Secretary shall provide assistance to any 
    applicant that--
            (A) conducts a livestock operation that is located in a 
        disaster county with eligible livestock specified in paragraph 
        (1) of section 1416.102(a) of title 7, Code of Federal 
        Regulations (72 Fed. Reg. 6444), 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)), or other animals designated by the 
        Secretary as livestock for purposes of this subsection; and
            (B) meets the requirements of paragraphs (3) and (4) of 
        section 1416.102(a) of title 7, Code of Federal Regulations, 
        and all other eligibility requirements established by the 
        Secretary for the program.
        (3) Election of losses.--
            (A) If a producer incurred eligible livestock losses in 
        more than one of the 2005, 2006, or 2007 calendar years, the 
        producer shall elect to receive payments under this subsection 
        for losses incurred in only one of such calendar years, and 
        such losses must have been incurred in a county declared or 
        designated as a disaster county in that same calendar year.
            (B) Producers may elect to receive compensation for losses 
        in the calendar year 2007 grazing season that are attributable 
        to wildfires occurring during the applicable period, as 
        determined by the Secretary.
        (4) 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.
        (5) Definitions.--In this subsection:
            (A) Disaster county.--The term ``disaster county'' means--
                (i) a county included in the geographic area covered by 
            a natural disaster declaration; and
                (ii) each county contiguous to a county described in 
            clause (i).
            (B) Natural disaster declaration.--The term ``natural 
        disaster declaration'' means--
                (i) a natural disaster declared by the Secretary 
            between January 1, 2005 and February 28, 2007, under 
            section 321(a) of the Consolidated Farm and Rural 
            Development Act (7 U.S.C. 1961(a));
                (ii) a major disaster or emergency designated by the 
            President between January 1, 2005 and February 28, 2007, 
            under the Robert T. Stafford Disaster Relief and Emergency 
            Assistance Act (42 U.S.C. 5121 et seq.); or
                (iii) a determination of a Farm Service Agency 
            Administrator's Physical Loss Notice if such notice applies 
            to a county included under (ii).
    (b) Livestock Indemnity Payments.--
        (1) Availability of assistance.--There are hereby appropriated 
    to the Secretary of Agriculture such sums as are necessary, to 
    remain available until expended, to make livestock indemnity 
    payments to producers on farms that have incurred livestock losses 
    between January 1, 2005 and February 28, 2007, due to a disaster, 
    as determined by the Secretary (including losses due to blizzards 
    that started in 2006 and continued into January 2007) in a disaster 
    county. To be eligible for assistance, applicants must meet all 
    eligibility requirements established by the Secretary for the 
    program.
        (2) Election of losses.--If a producer incurred eligible 
    livestock losses in more than one of the 2005, 2006, or 2007 
    calendar years, the producer shall elect to receive payments under 
    this subsection for losses incurred in only one of such calendar 
    years. The producer may not receive payments under this subsection 
    for more than one calendar year.
        (3) 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.
        (4) Livestock defined.--In this subsection, the term 
    ``livestock'' means an animal that--
            (A) is specified in clause (i) of section 1416.203(a)(2) of 
        title 7, Code of Federal Regulations (72 Fed. Reg. 6445), or is 
        designated by the Secretary as livestock for purposes of this 
        subsection; and
            (B) meets the requirements of clauses (iii) and (iv) of 
        such section.
        (5) Definitions.--In this subsection:
            (A) Disaster county.--The term ``disaster county'' means--
                (i) a county included in the geographic area covered by 
            a natural disaster declaration; and
                (ii) each county contiguous to a county described in 
            clause (i).
            (B) Natural disaster declaration.--The term ``natural 
        disaster declaration'' means--
                (i) a natural disaster declared by the Secretary 
            between January 1, 2005 and February 28, 2007 under section 
            321(a) of the Consolidated Farm and Rural Development Act 
            (7 U.S.C. 1961(a));
                (ii) a major disaster or emergency designated by the 
            President between January 1, 2005 and February 28, 2007 
            under the Robert T. Stafford Disaster Relief and Emergency 
            Assistance Act (42 U.S.C. 5121 et seq.); or
                (iii) a determination of a Farm Service Agency 
            Administrator's Physical Loss Notice if such notice applies 
            to a county included under (ii).

SEC. 5103. EMERGENCY CONSERVATION PROGRAM.

    There is hereby appropriated to the Secretary of Agriculture 
$20,000,000, to remain available until expended, to provide assistance 
under the Emergency Conservation Program under title IV of the 
Agriculture Credit Act of 1978 (16 U.S.C. 2201 et seq.) for the cleanup 
and restoration of farm and agricultural production lands.

SEC. 5104. PAYMENT LIMITATIONS.

    (a) Reduction in Payments to Reflect Payments for Same or Similar 
Losses.--The amount of any payment for which a producer is eligible 
under sections 5101 and 5102 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; or
        (3) the Emergency Supplemental Appropriations Act for Defense, 
    the Global War on Terror, and Hurricane Recovery, 2006 (Public Law 
    109-234; 120 Stat. 418).
    (b) Adjusted Gross Income Limitation.--Section 1001D of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a) shall apply with respect to 
assistance provided under sections 5101, 5102, and 5103.

SEC. 5105. ADMINISTRATION.

    (a) Regulations.--The Secretary of Agriculture may promulgate such 
regulations as are necessary to implement sections 5101 and 5102.
    (b) Procedure.--The promulgation of the implementing regulations 
and the administration of sections 5101 and 5102 shall be made without 
regard to--
        (1) the notice and comment provisions of section 553 of title 
    5, United States Code;
        (2) the Statement of Policy of the Secretary of Agriculture 
    effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 
    of proposed rulemaking and public participation in rulemaking; and
        (3) chapter 35 of title 44, United States Code (commonly known 
    as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary of Agriculture shall use the authority 
provided under section 808 of title 5, United States Code.
    (d) Use of Commodity Credit Corporation; Limitation.--In 
implementing sections 5101 and 5102, the Secretary of Agriculture may 
use the facilities, services, and authorities of the Commodity Credit 
Corporation. The Corporation shall not make any expenditures to carry 
out sections 5101 and 5102 unless funds have been specifically 
appropriated for such purpose.

SEC. 5106. MILK INCOME LOSS CONTRACT PROGRAM.

    Section 1502(c)(3) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7982(c)(3)) is amended--
        (1) in subparagraph (A), by adding ``and'' at the end;
        (2) in subparagraph (B), by striking ``August'' and all that 
    follows through the end and inserting ``September 30, 2007, 34 
    percent.''; and
        (3) by striking subparagraph (C).

SEC. 5107. DAIRY ASSISTANCE.

    There is hereby appropriated $20,000,000 to make payments to dairy 
producers for dairy production losses in disaster counties, as defined 
in section 5102 of this title, to remain available until expended.

SEC. 5108. NONINSURED CROP ASSISTANCE PROGRAM.

    For states in which there is a shortage of claims adjustors, as 
determined by the Secretary, the Secretary shall permit the use of one 
claims adjustor certified by the Secretary in carrying out 7 CFR 
1437.401.

SEC. 5109. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
              FARMWORKERS.

    There is hereby appropriated $21,000,000 to carry out section 2281 
of the Food, Agriculture, Conservation and Trade Act of 1990 (42 U.S.C. 
5177a), to remain available until expended.

SEC. 5110. CONSERVATION SECURITY PROGRAM.

    Section 20115 of Public Law 110-5 is amended by striking ``section 
726'' and inserting in lieu thereof ``section 726; section 741''.

SEC. 5111. ADMINISTRATIVE EXPENSES.

    There is hereby appropriated $30,000,000 for the ``Farm Service 
Agency, Salaries and Expenses'', to remain available until September 
30, 2008.

SEC. 5112. CONTRACT WAIVER.

    In carrying out crop disaster and livestock assistance in this 
title, the Secretary shall require forage producers to have 
participated in a crop insurance pilot program or the Non-Insured Crop 
Disaster Assistance Program during the crop year for which compensation 
is received.

                                TITLE VI

            ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

  Centers for Medicare and Medicaid Services State Children's Health 
                             Insurance Fund

    For an additional amount to provide additional allotments to 
remaining shortfall States under section 2104(h)(4) of the Social 
Security Act, as inserted by section 6001, such sums as may be 
necessary, but not to exceed $650,000,000 for fiscal year 2007, to 
remain available until expended.

SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUNDING 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.--From the amounts provided in advance in 
        appropriations Acts, 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).''.
    (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)''.
    Sec. 6002. (a) Prohibition.--
        (1) Limitation on secretarial authority.--Notwithstanding any 
    other provision of law, the Secretary of Health and Human Services 
    shall not, prior to the date that is 1 year after the date of 
    enactment of this Act, take any action (through promulgation of 
    regulation, issuance of regulatory guidance, or other 
    administrative action) to--
            (A) finalize or otherwise implement provisions contained in 
        the proposed rule published on January 18, 2007, on pages 2236 
        through 2248 of volume 72, Federal Register (relating to parts 
        433, 447, and 457 of title 42, Code of Federal Regulations);
            (B) promulgate or implement any rule or provisions similar 
        to the provisions described in subparagraph (A) pertaining to 
        the Medicaid program established under title XIX of the Social 
        Security Act or the State Children's Health Insurance Program 
        established under title XXI of such Act; or
            (C) promulgate or implement any rule or provisions 
        restricting payments for graduate medical education under the 
        Medicaid program.
        (2) Continuation of other secretarial authority.--The Secretary 
    of Health and Human Service shall not be prohibited during the 
    period described in paragraph (1) from taking any action (through 
    promulgation of regulation, issuance of regulatory guidance, or 
    other administrative action) to enforce a provision of law in 
    effect as of the date of enactment of this Act with respect to the 
    Medicaid program or the State Children's Health Insurance Program, 
    or to promulgate or implement a new rule or provision during such 
    period with respect to such programs, other than a rule or 
    provision described in paragraph (1) and subject to the prohibition 
    set forth in that paragraph.
    (b) Requirement for Use of Tamper-Resistant Prescription Pads Under 
the Medicaid Program.--
        (1) In general.--Section 1903(i) of the Social Security Act (42 
    U.S.C. 1396b(i)) is amended--
            (A) by striking ``or'' at the end of paragraph (21);
            (B) by striking the period at the end of paragraph (22) and 
        inserting ``; or''; and
            (C) by inserting after paragraph (22) the following new 
        paragraph:
        ``(23) with respect to amounts expended for medical assistance 
    for covered outpatient drugs (as defined in section 1927(k)(2)) for 
    which the prescription was executed in written (and non-electronic) 
    form unless the prescription was executed on a tamper-resistant 
    pad.''.
        (2) Effective date.--The amendments made by paragraph (1) shall 
    apply to prescriptions executed after September 30, 2007.
    (c) Extension of Certain Pharmacy Plus Waivers.--
        (1) Authority to continue to operate waivers.--Notwithstanding 
    any other provision of law, any State that is operating a Pharmacy 
    Plus waiver described in paragraph (2) which would otherwise expire 
    on June 30, 2007, may elect to continue to operate the waiver 
    through December 31, 2009.
        (2) Pharmacy plus waiver described.--For purposes of paragraph 
    (1), a Pharmacy Plus waiver described in this paragraph is a waiver 
    approved by the Secretary of Health and Human Services under the 
    authority of section 1115 of the Social Security Act (42 U.S.C. 
    1315) that provides coverage for prescription drugs for individuals 
    who have attained age 65 and whose family income does not exceed 
    200 percent of the poverty line (as defined in section 2110(c)(5) 
    of such Act (42 U.S.C. 1397jj(c)(5)).

                               TITLE VII
                    FAIR MINIMUM WAGE AND TAX RELIEF
                     Subtitle A--Fair Minimum Wage

SEC. 7000. SHORT TITLE.

    This subtitle may be cited as the ``Fair Minimum Wage Act of 
2007''.

SEC. 7001. MINIMUM WAGE.

    (a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
        ``(1) except as otherwise provided in this section, not less 
    than--
            ``(A) $5.85 an hour, beginning on the 60th day after the 
        date of enactment of the Fair Minimum Wage Act of 2007;
            ``(B) $6.55 an hour, beginning 12 months after that 60th 
        day; and
            ``(C) $7.25 an hour, beginning 24 months after that 60th 
        day;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 60 days after the date of enactment of this Act.

SEC. 7002. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA AND THE 
              COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS.

    (a) In General.--Section 6 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of 
the Northern Mariana Islands.
    (b) Transition.--Notwithstanding subsection (a)--
        (1) the minimum wage applicable to the Commonwealth of the 
    Northern Mariana Islands under section 6(a)(1) of the Fair Labor 
    Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be--
            (A) $3.55 an hour, beginning on the 60th day after the date 
        of enactment of this Act; and
            (B) increased by $0.50 an hour (or such lesser amount as 
        may be necessary to equal the minimum wage under section 
        6(a)(1) of such Act), beginning 1 year after the date of 
        enactment of this Act and each year thereafter until the 
        minimum wage applicable to the Commonwealth of the Northern 
        Mariana Islands under this paragraph is equal to the minimum 
        wage set forth in such section; and
        (2) the minimum wage applicable to American Samoa under section 
    6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
    206(a)(1)) shall be--
            (A) the applicable wage rate in effect for each industry 
        and classification under section 697 of title 29, Code of 
        Federal Regulations, on the date of enactment of this Act;
            (B) increased by $0.50 an hour, beginning on the 60th day 
        after the date of enactment of this Act; and
            (C) increased by $0.50 an hour (or such lesser amount as 
        may be necessary to equal the minimum wage under section 
        6(a)(1) of such Act), beginning 1 year after the date of 
        enactment of this Act and each year thereafter until the 
        minimum wage applicable to American Samoa under this paragraph 
        is equal to the minimum wage set forth in such section.
    (c) Conforming Amendments.--
        (1) In general.--The Fair Labor Standards Act of 1938 is 
    amended--
            (A) by striking sections 5 and 8; and
            (B) in section 6(a), by striking paragraph (3) and 
        redesignating paragraphs (4) and (5) as paragraphs (3) and (4), 
        respectively.
        (2) Effective date.--The amendments made by this subsection 
    shall take effect 60 days after the date of enactment of this Act.

SEC. 7003. STUDY ON PROJECTED IMPACT.

    (a) Study.--Beginning on the date that is 26 months after the date 
of enactment of this Act, the Secretary of Labor shall, through the 
Bureau of Labor Statistics, conduct a study to--
        (1) assess the assess the impact of the wage increases required 
    by this Act through such date; and
        (2) to project the impact of any further wage increase,
on living standards and rates of employment in American Samoa and the 
Commonwealth of the Northern Mariana Islands.
    (b) Report.--Not later than the date that is 32 months after the 
date of enactment of this Act, the Secretary of Labor shall transmit to 
Congress a report on the findings of the study required by subsection 
(a).

                 Subtitle B--Small Business Incentives

SEC. 7004. SHORT TITLE.

    This subtitle may be cited as the ``Small Business and Work 
Opportunity Act of 2007''.

SEC. 7005. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL BUSINESSES.

    (a) In General.--Section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended by 
striking subsection (a) and inserting the following:
    ``(a) Compliance Guide.--
        ``(1) In general.--For each rule or group of related rules for 
    which an agency is required to prepare a final regulatory 
    flexibility analysis under section 605(b) of title 5, United States 
    Code, the agency shall publish 1 or more guides to assist small 
    entities in complying with the rule and shall entitle such 
    publications `small entity compliance guides'.
        ``(2) Publication of guides.--The publication of each guide 
    under this subsection shall include--
            ``(A) the posting of the guide in an easily identified 
        location on the website of the agency; and
            ``(B) distribution of the guide to known industry 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. 7006. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

    (a) Establishment.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary'') shall 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. 7007. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF EARNED INCOME 
              CREDIT.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall report to Congress on a study 
of the benefits, costs, risks, and barriers to workers and to 
businesses (with a special emphasis on small businesses) if the advance 
earned income tax credit program (under section 3507 of the Internal 
Revenue Code of 1986) included all recipients of the earned income tax 
credit (under section 32 of such Code) and what steps would be 
necessary to implement such inclusion.

SEC. 7008. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

    (a) In General.--Section 29 of the Small Business Act (15 U.S.C. 
656) is amended by adding at the end the following:
    ``(m) Continued Funding for Centers.--
        ``(1) In general.--A nonprofit organization described in 
    paragraph (2) shall be eligible to receive, subject to paragraph 
    (3), a 3-year grant under this subsection.
        ``(2) Applicability.--A nonprofit organization described in 
    this paragraph is a nonprofit organization that has received 
    funding under subsection (b) or (l).
        ``(3) Application and approval criteria.--
            ``(A) Criteria.--Subject to subparagraph (B), the 
        Administrator shall develop and publish criteria for the 
        consideration and approval of applications by nonprofit 
        organizations under this subsection.
            ``(B) Contents.--Except as otherwise provided in this 
        subsection, the conditions for participation in the grant 
        program under this subsection shall be the same as the 
        conditions for participation in the program under 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. 7009. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND SUPPLIES 
              MANUFACTURED OUTSIDE THE UNITED STATES.

    Section 2 of the Buy American Act (41 U.S.C. 10a) is amended--
        (1) by striking ``Notwithstanding'' and inserting the 
    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)).''.

               Subtitle C--Small Business Tax Incentives

SEC. 7510. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS.

    (a) Short Title.--This subtitle may be cited as the ``Small 
Business and Work Opportunity Tax Act of 2007''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this subtitle is 
as follows:

                Subtitle C--Small Business Tax Incentives

Sec. 7510. Short title; amendment of Code; table of contents.

              PART I--Small Business Tax Relief Provisions


                       SUBPART A--General Provisions

Sec. 7511. Extension and modification of work opportunity tax credit.
Sec. 7512. Extension and increase of expensing for small business.
Sec. 7513. Determination of credit for certain taxes paid with respect 
          to employee cash tips.
Sec. 7514. Waiver of individual and corporate alternative minimum tax 
          limits on work opportunity credit and credit for taxes paid 
          with respect to employee cash tips.
Sec. 7515. Family business tax simplification.


              SUBPART B--Gulf Opportunity Zone Tax Incentives

Sec. 7521. Extension of increased expensing for qualified section 179 
          Gulf Opportunity Zone property.
Sec. 7522. Extension and expansion of low-income housing credit rules 
          for buildings in the GO Zones.
Sec. 7523. Special tax-exempt bond financing rule for repairs and 
          reconstructions of residences in the GO Zones.
Sec. 7524. GAO study of practices employed by State and local 
          governments in allocating and utilizing tax incentives 
          provided pursuant to the Gulf Opportunity Zone Act of 2005.


                    SUBPART C--Subchapter S Provisions

Sec. 7531. Capital gain of S corporation not treated as passive 
          investment income.
Sec. 7532. Treatment of bank director shares.
Sec. 7533. Special rule for bank required to change from the reserve 
          method of accounting on becoming S corporation.
Sec. 7534. Treatment of the sale of interest in a qualified subchapter S 
          subsidiary.
Sec. 7535. Elimination of all earnings and profits attributable to pre-
          1983 years for certain corporations.
Sec. 7536. Deductibility of interest expense on indebtedness incurred by 
          an electing small business trust to acquire S corporation 
          stock.

                       PART II--Revenue Provisions

Sec. 7541. Increase in age of minor children whose unearned income is 
          taxed as if parent's income.
Sec. 7542. Suspension of certain penalties and interest.
Sec. 7543. Modification of collection due process procedures for 
          employment tax liabilities.
Sec. 7544. Permanent extension of IRS user fees.
Sec. 7545. Increase in penalty for bad checks and money orders.
Sec. 7546. Understatement of taxpayer liability by return preparers.
Sec. 7547. Penalty for filing erroneous refund claims.
Sec. 7548. Time for payment of corporate estimated taxes.

              PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

                     Subpart A--General Provisions

SEC. 7511. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.

    (a) Extension.--Section 51(c)(4)(B) (relating to termination) is 
amended by striking ``December 31, 2007'' and inserting ``August 31, 
2011''.
    (b) Increase in Maximum Age for Designated Community Residents.--
        (1) In general.--Paragraph (5) of section 51(d) is amended to 
    read as follows:
        ``(5) Designated community residents.--
            ``(A) In general.--The term `designated community resident' 
        means any individual who is certified by the 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, and--

                    ``(I) having a hiring date which is not more that 1 
                year after having been discharged or released from 
                active duty in the Armed Forces of the United States, 
                or
                    ``(II) having aggregate periods of unemployment 
                during the 1-year period ending on the hiring date 
                which equal or exceed 6 months.''.

            (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.

SEC. 7512. EXTENSION AND INCREASE OF EXPENSING FOR SMALL BUSINESS.

    (a) Extension.--Subsections (b)(1), (b)(2), (b)(5), (c)(2), and 
(d)(1)(A)(ii) of section 179 (relating to election to expense certain 
depreciable business assets) are each amended by striking ``2010'' and 
inserting ``2011''.
    (b) Increase in Limitations.--Subsection (b) of section 179 is 
amended--
        (1) by striking ``$100,000 in the case of taxable years 
    beginning after 2002'' in paragraph (1) and inserting ``$125,000 in 
    the case of taxable years beginning after 2006'', and
        (2) by striking ``$400,000 in the case of taxable years 
    beginning after 2002'' in paragraph (2) and inserting ``$500,000 in 
    the case of taxable years beginning after 2006''.
    (c) Inflation Adjustment.--Subparagraph (A) of section 179(b)(5) is 
amended--
        (1) by striking ``2003'' and inserting ``2007'',
        (2) by striking ``$100,000 and $400,000'' and inserting 
    ``$125,000 and $500,000'', and
        (3) by striking ``2002'' in clause (ii) and inserting ``2006''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 7513. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID WITH RESPECT 
              TO EMPLOYEE CASH TIPS.

    (a) In General.--Subparagraph (B) of section 45B(b)(1) is amended 
by inserting ``as in effect on January 1, 2007, and'' before 
``determined without regard to''.
    (b) Effective Date.--The amendment made by this section shall apply 
to tips received for services performed after December 31, 2006.

SEC. 7514. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE MINIMUM TAX 
              LIMITS ON WORK OPPORTUNITY CREDIT AND CREDIT FOR TAXES 
              PAID WITH RESPECT TO EMPLOYEE CASH TIPS.

    (a) Allowance Against Alternative Minimum Tax.--Subparagraph (B) of 
section 38(c)(4) is amended by striking ``and'' at the end of clause 
(i), by inserting a comma at the end of clause (ii), and by adding at 
the end the following new clauses:
                ``(iii) the credit determined under section 45B, and
                ``(iv) the credit determined under section 51.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to credits determined under sections 45B and 51 of the Internal 
Revenue Code of 1986 in taxable years beginning after December 31, 
2006, and to carrybacks of such credits.

SEC. 7515. FAMILY BUSINESS TAX SIMPLIFICATION.

    (a) In General.--Section 761 (defining terms for purposes of 
partnerships) is amended by redesignating subsection (f) as subsection 
(g) and by inserting after subsection (e) the following new subsection:
    ``(f) Qualified Joint Venture.--
        ``(1) In general.--In the case of a qualified joint venture 
    conducted by a husband and wife who file a joint return for the 
    taxable year, for purposes of this title--
            ``(A) such joint venture shall not be treated as a 
        partnership,
            ``(B) all items of income, gain, loss, deduction, and 
        credit shall be divided between the spouses in accordance with 
        their respective interests in the venture, and
            ``(C) each spouse shall take into account such spouse's 
        respective share of such items as if they were attributable to 
        a trade or business conducted by such spouse as a sole 
        proprietor.
        ``(2) Qualified joint venture.--For purposes of paragraph (1), 
    the term `qualified joint venture' means any joint venture 
    involving the conduct of a trade or business if--
            ``(A) the only members of such joint venture are a husband 
        and wife,
            ``(B) both spouses materially participate (within the 
        meaning of section 469(h) without regard to paragraph (5) 
        thereof) in such trade or business, and
            ``(C) both spouses elect the application of this 
        subsection.''.
    (b) Net Earnings From Self-Employment.--
        (1) Subsection (a) of section 1402 (defining net earnings from 
    self-employment) is amended by striking ``, and'' at the end of 
    paragraph (15) and inserting a semicolon, by striking the period at 
    the end of paragraph (16) and inserting ``; and'', and by inserting 
    after paragraph (16) the following new paragraph:
        ``(17) notwithstanding the preceding provisions of this 
    subsection, each spouse's share of income or loss from a qualified 
    joint venture shall be taken into account as provided in section 
    761(f) in determining net earnings from self-employment of such 
    spouse.''.
        (2) Subsection (a) of section 211 of the Social Security Act 
    (defining net earnings from self-employment) is amended by striking 
    ``and'' at the end of paragraph (14), by striking the period at the 
    end of paragraph (15) and inserting ``; and'', and by inserting 
    after paragraph (15) the following new paragraph:
        ``(16) Notwithstanding the preceding provisions of this 
    subsection, each spouse's share of income or loss from a qualified 
    joint venture shall be taken into account as provided in section 
    761(f) of the Internal Revenue Code of 1986 in determining net 
    earnings from self-employment of such spouse.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

            Subpart B--Gulf Opportunity Zone Tax Incentives

SEC. 7521. 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.''.

SEC. 7522. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT RULES 
              FOR BUILDINGS IN THE GO ZONES.

    (a) Time for Making Low-Income Housing Credit Allocations.--
Subsection (c) of section 1400N (relating to low-income housing credit) 
is amended by redesignating paragraph (5) as paragraph (6) and by 
inserting after paragraph (4) the following new paragraph:
        ``(5) Time for making low-income housing credit allocations.--
    Section 42(h)(1)(B) shall not apply to an allocation of housing 
    credit dollar amount to a building located in the Gulf Opportunity 
    Zone, the Rita GO Zone, or the Wilma GO Zone, if such allocation is 
    made in 2006, 2007, or 2008, and such building is placed in service 
    before January 1, 2011.''.
    (b) Extension of Period for Treating GO Zones as Difficult 
Development Areas.--
        (1) In general.--Subparagraph (A) of section 1400N(c)(3) is 
    amended by striking ``2006, 2007, or 2008'' and inserting ``the 
    period beginning on January 1, 2006, and ending on December 31, 
    2010''.
        (2) Conforming amendment.--Clause (ii) of section 
    1400N(c)(3)(B) is amended by striking ``such period'' and inserting 
    ``the period described in subparagraph (A)''.
    (c) Community Development Block Grants Not Taken Into Account in 
Determining if Buildings Are Federally Subsidized.--Subsection (c) of 
section 1400N (relating to low-income housing credit), as amended by 
this Act, is amended by redesignating paragraph (6) as paragraph (7) 
and by inserting after paragraph (5) the following new paragraph:
        ``(6) Community development block grants not taken into account 
    in determining if buildings are federally subsidized.--For purpose 
    of applying section 42(i)(2)(D) to any building which is placed in 
    service in the Gulf Opportunity Zone, the Rita GO Zone, or the 
    Wilma GO Zone during the period beginning on January 1, 2006, and 
    ending on December 31, 2010, a loan shall not be treated as a below 
    market Federal loan solely by reason of any assistance provided 
    under section 106, 107, or 108 of the Housing and Community 
    Development Act of 1974 by reason of section 122 of such Act or any 
    provision of the Department of Defense Appropriations Act, 2006, or 
    the Emergency Supplemental Appropriations Act for Defense, the 
    Global War on Terror, and Hurricane Recovery, 2006.''.

SEC. 7523. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND 
              RECONSTRUCTIONS OF RESIDENCES IN THE GO ZONES.

    Subsection (a) of section 1400N (relating to tax-exempt bond 
financing) is amended by adding at the end the following new paragraph:
        ``(7) Special rule for repairs and reconstructions.--
            ``(A) In general.--For purposes of section 143 and this 
        subsection, any qualified GO Zone repair or reconstruction 
        shall be treated as a qualified rehabilitation.
            ``(B) Qualified go zone repair or reconstruction.--For 
        purposes of subparagraph (A), the term `qualified GO Zone 
        repair or reconstruction' means any repair of damage caused by 
        Hurricane Katrina, Hurricane Rita, or Hurricane Wilma to a 
        building located in the Gulf Opportunity Zone, the Rita GO 
        Zone, or the Wilma GO Zone (or reconstruction of such building 
        in the case of damage constituting destruction) if the 
        expenditures for such repair or reconstruction are 25 percent 
        or more of the mortgagor's adjusted basis in the residence. For 
        purposes of the preceding sentence, the mortgagor's adjusted 
        basis shall be determined as of the completion of the repair or 
        reconstruction or, if later, the date on which the mortgagor 
        acquires the residence.
            ``(C) Termination.--This paragraph shall apply only to 
        owner-financing provided after the date of the enactment of 
        this paragraph and before January 1, 2011.''.

SEC. 7524. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL 
              GOVERNMENTS IN ALLOCATING AND UTILIZING TAX INCENTIVES 
              PROVIDED PURSUANT TO THE GULF OPPORTUNITY ZONE ACT OF 
              2005.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the practices employed by State and local 
governments, and subdivisions thereof, in allocating and utilizing tax 
incentives provided pursuant to the Gulf Opportunity Zone Act of 2005 
and this Act.
    (b) Submission of Report.--Not later than one year after the date 
of the enactment of this Act, the Comptroller General shall submit a 
report on the findings of the study conducted under subsection (a) and 
shall include therein recommendations (if any) relating to such 
findings. The report shall be submitted to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate.
    (c) Congressional Hearings.--In the case that the report submitted 
under this section includes findings of significant fraud, waste or 
abuse, each Committee specified in subsection (b) shall, within 60 days 
after the date the report is submitted under subsection (b), hold a 
public hearing to review such findings.

                   Subpart C--Subchapter S Provisions

SEC. 7531. 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. 7532. 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. 7533. 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. 7534. 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. 7535. 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. 7536. 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. 7541. 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. 7542. 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.--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.

SEC. 7543. 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 disqualified employment tax 
    levy,''.
    (b) Disqualified Employment Tax Levy.--Section 6330 of such Code 
(relating to notice and opportunity for hearing before levy) is amended 
by adding at the end the following new subsection:
    ``(h) Disqualified Employment Tax Levy.--For purposes of subsection 
(f), a disqualified employment tax levy is any levy in connection with 
the collection of employment taxes for any taxable period if the person 
subject to the levy (or any predecessor thereof) requested a hearing 
under this section with respect to unpaid employment taxes arising in 
the most recent 2-year period before the beginning of the taxable 
period with respect to which the levy is served. For purposes of the 
preceding sentence, the term `employment taxes' means any taxes under 
chapter 21, 22, 23, or 24.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to levies served on or after the date that is 120 days after the 
date of the enactment of this Act.

SEC. 7544. PERMANENT EXTENSION OF IRS USER FEES.

    Section 7528 (relating to Internal Revenue Service user fees) is 
amended by striking subsection (c).

SEC. 7545. 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. 7546. 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. 7547. 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 which is subject to a penalty 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 filed or submitted after the date of the enactment 
of this Act.

SEC. 7548. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    Subparagraph (B) of section 401(1) of the Tax Increase Prevention 
and Reconciliation Act of 2005 is amended by striking ``106.25 
percent'' and inserting ``114.25 percent''.
    This Act may be cited as the ``U.S. Troop Readiness, Veterans' 
Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 
2007''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.