[Congressional Record Volume 153, Number 55 (Thursday, March 29, 2007)]
[Senate]
[Pages S4082-S4131]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
U.S. TROOP READINESS, VETERANS' HEALTH, AND IRAQ ACCOUNTABILITY ACT,
2007
The ACTING PRESIDENT pro tempore. Under the previous order, the
Senate will resume consideration of H.R. 1591, which the clerk will
report.
The bill clerk read as follows:
A bill (H.R. 1591) making emergency supplemental
appropriations for the fiscal year ending September 30, 2007,
and for other purposes.
Pending:
Cochran (for Lugar) amendment No. 690, to provide that, of
the funds appropriated by this act under the headings
``DIPLOMATIC AND CONSULAR PROGRAMS'' and ``ECONOMIC SUPPORT
FUND'' (except for the Community Action Program), up to $50
million may be made available to support and maintain a
civilian reserve corps.
Obama amendment No. 664, to appropriate an additional $58
million for Defense Health Program for additional mental
health and related personnel, an additional $10 million for
operation and maintenance for each of the military
departments for improved physical disability evaluations of
members of the Armed Forces, and an additional $15 million
for Defense Health Program for women's mental health
services.
Webb amendment No. 692, to prohibit the use of funds for
military operations in Iran.
Coburn amendment No. 649, to remove a $2 million earmark
for the University of Vermont.
Coburn amendment No. 656, to require timely public
disclosure of Government reports submitted to Congress.
Coburn amendment No. 717, to make certain provisions
inapplicable.
Coburn amendment No. 718, to make certain provisions
inapplicable.
Reid amendment No. 823 (to amendment No. 690), to establish
the enactment date.
The ACTING PRESIDENT pro tempore. Under the previous order, all time
postcloture has expired.
amendment no. 823 withdrawn
The ACTING PRESIDENT pro tempore. Under the previous order, amendment
No. 823, offered by the Senator from Nevada, Mr. Reid, is withdrawn.
amendment no. 690
The ACTING PRESIDENT pro tempore. Under the previous order, amendment
No. 690, offered by the Senator from Indiana, Mr. Lugar, is agreed to.
The amendment (No. 690) was agreed to.
The ACTING PRESIDENT pro tempore. Under the previous order, all
pending amendments, other than amendment No. 649, offered by the
Senator from Oklahoma, Mr. Coburn, are withdrawn.
The Senator from Washington.
Mrs. MURRAY. Mr. President, I understand under the order that there
will be 4 minutes equally divided before each amendment. The first
amendment we are considering is the Ensign amendment; is that correct?
The ACTING PRESIDENT pro tempore. That is correct.
Mrs. MURRAY. I see the Senator from Nevada is on the floor, so I
yield the floor.
amendment no. 752, as modified
Mr. ENSIGN. Mr. President, I understand a modification of my
amendment is at the desk. I call it up.
The ACTING PRESIDENT pro tempore. That is correct. The clerk will
report.
The legislative clerk read as follows:
The Senator from Nevada [Mr. Ensign] proposes an amendment
numbered 752, as modified.
Mr. ENSIGN. Mr. President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendment is as follows:
On page 3, strike lines 13 through 22 and insert the
following:
salaries and expenses, united states attorneys
For an additional amount for ``Salaries and Expenses,
United States Attorneys'', $12,500,000, to remain available
until September 30, 2008.
United States Marshals Service
salaries and expenses, united states marshals service
For an additional amount for ``Salaries and Expenses,
United States Marshals Service'', $32,500,000, to remain
available until September 30, 2008: Provided, That of the
amounts made available in this Act for ``Educational and
Cultural Exchange Programs'', $15,000,000 is rescinded.
Mr. ENSIGN. Mr. President, very simply, this amendment reduces
spending for the Educational and Cultural Exchange Program fund in
order to provide spending for implementation of the Adam Walsh Act. My
amendment provides funding for the United States Attorneys to prosecute
sexual predators who target children and also for the United States
Marshals to track down the nearly 100,000 sex offenders in the United
States who have failed to register as a sex offender as required by
law.
The bill before the Senate is an emergency spending bill. I strongly
believe that funding the critical programs contained in the Adam Walsh
Act is an emergency: 100,000 predators on our streets who are
unregistered as sex offenders. They need to be registered. So that
parents know where they are so that they can protect their children.
That is an emergency.
I know some people hold the sincere belief that the Educational and
Cultural Exchange program is very worthwhile. I don't question their
opinion, but I question whether funding it is truly an emergency. I
want to give a few examples of the kind of projects that the
Educational and Cultural Exchange program funds. Last year, according
to the State Department Web site, this program funded the following: We
sent a bluegrass band to China. We taught weaving and dyeing techniques
with Uzbek women. We sent jazz musicians to Madagascar. We paid for
breakdancers to tour Denmark, Argentina, Croatia, and Kiev. Those may
be worthy cross-cultural activities to pursue, but I cannot stand here
and suggest they are emergencies that are of greater need to fund than
providing law enforcement with the resources need to protect our
children, especially at a time of war.
Let's use emergency funding for real emergencies in this country. If
you are a parent today and you have children out there, knowing where
those sex offenders are so you can keep your children safe I would say
does constitute an emergency. I recommend and urge my colleagues to
support this important amendment.
Mr. LEAHY. Mr. President, as a former prosecutor I am a strong
supporter of the Marshals Service.
We have the Commerce, Justice, Science appropriations bill to fund
the U.S. Marshals Service, and there is already $25 million in this
bill to support their important work, which is $11 million more than
was requested by the President.
The amendment offered by the Senator from Nevada has a lot of appeal.
Who would not want to support additional funding for the U.S. Marshals
Service, or for a whole lot of other programs, for that matter. Police,
fire departments, hospitals, schools--the list is limitless.
It is unfortunate that the Senator's amendment would be paid for by
cutting $15 million in this supplemental bill, requested by the
President, to fund international educational and cultural exchange
programs. In other words, he reaches across subcommittees to a
completely different budget from that which funds the Marshals Service.
That is a mistake. It is a road we should not go down.
Should we also take money to train teachers in Afghanistan and use it
instead to refurbish public schools in the United States? What about
cutting funding for reconstruction in Lebanon to pay for new vehicles
and equipment for our police and fire departments? Or we could cut the
funding in this bill to combat the spread of avian flu and use it
instead for victims of crime programs or drug treatment programs here
at home.
Any of those amendments would pass overwhelmingly in the Senate.
But is that really how we want to do our business? The reputation of
the United States today has taken a beating unparalleled in our
history. We are reviled in the Muslim world. Even our traditional
allies have lost faith in our leadership. During his recent trip to
Latin America, President Bush encountered this hostility at every stop.
Our image has been tarnished, our influence badly eroded. This is an
emergency bill to combat terrorism, and
[[Page S4083]]
these educational exchange programs, which provide Muslim students and
professionals the opportunity to come to the United States for
education and training, are among the most effective ways we have of
combating extremism.
Exchanges have been shown to reverse negative perceptions and the
spread of hatred. There are far too few tools at our fingertips that
are this effective.
These funds would support, for example, a first-ever Islamic dialogue
two-way exchange program to foster interfaith dialogue, sports
exchanges to engage youth and provide the opportunity to visit the
United States and summer programs for Muslim students to learn English.
This amendment would cut $15 million in this bill for these programs,
leaving only $10 million for educational and cultural exchanges for the
whole world.
I share the Senator's concerns about the Adam Walsh Child Safety and
Protection Act. We should increase funding for the Marshals Service.
But this bill is not the place to do that. This bill is about combating
terrorism and responding to humanitarian emergencies overseas. It would
be a serious mistake to reduce funding for exchange programs that have
strong bipartisan support. The President requested these funds, and he
was right to do so. We cannot only look inward. We must look outward as
well. No programs are more effective in countering the negative
attitudes about America than the exchanges that bring people here from
countries such as Egypt, Indonesia, Lebanon, and Pakistan to meet
Americans and experience what life is like in the world's oldest
democracy.
I support the intent of the amendment of the Senator from Nevada and
will reluctantly vote for it, but if he had been willing, I would have
been happy to have worked with him to obtain additional funds for the
Marshals Service in the appropriate funding bill. Unfortunately he was
not.
Mr. FEINGOLD. Mr. President, I supported that Ensign amendment today
because it is vitally important that we protect our children against
sexual predators. I did so despite my serious concern about the offset
used to pay for the program. We should not be cutting funding from the
State Department's Bureau of Education and Cultural Exchange, ECA. I
strongly believe that people-to-people exchange is one of the most
effective public diplomacy tools we have, and I hope that funding for
the ECA will be restored in conference.
I yield the remainder of my time.
The ACTING PRESIDENT pro tempore. The Senator from Washington.
Mrs. MURRAY. Mr. President, the Ensign amendment, as modified, is an
amendment that is acceptable to this side. I ask my colleague from
Nevada if he is willing to take a voice vote.
Mr. ENSIGN. I ask for the yeas and nays.
Mrs. MURRAY. Mr. President, I understand the Senator wants a rollcall
vote on this amendment. We will move to that vote. We support the
amendment on this side and yield back our time.
I ask for the yeas and nays.
The ACTING PRESIDENT pro tempore. Is there a sufficient second? There
appears to be a sufficient second.
The question is on agreeing to the amendment.
The clerk will call the roll.
The legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from Indiana (Mr. Bayh), the
Senator from New York (Mrs. Clinton), the Senator from Hawaii (Mr.
Inouye), the Senator from South Dakota (Mr. Johnson), the Senator from
Connecticut (Mr. Lieberman), and the Senator from Florida (Mr. Nelson)
are necessarily absent.
I further announce that, if present and voting, the Senator from New
York (Mrs. Clinton) and the Senator from Florida (Mr. Nelson) would
each vote ``yea.''
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
The ACTING PRESIDENT pro tempore. Are there any other Senators in the
Chamber desiring to vote?
The result was announced--yeas 93, nays 0, as follows:
[Rollcall Vote No. 122 Leg.]
YEAS--93
Akaka
Alexander
Allard
Baucus
Bennett
Biden
Bingaman
Bond
Boxer
Brown
Brownback
Bunning
Burr
Byrd
Cantwell
Cardin
Carper
Casey
Chambliss
Coburn
Cochran
Coleman
Collins
Conrad
Corker
Cornyn
Craig
Crapo
DeMint
Dodd
Dole
Domenici
Dorgan
Durbin
Ensign
Feingold
Feinstein
Graham
Grassley
Gregg
Hagel
Harkin
Hatch
Hutchison
Inhofe
Isakson
Kennedy
Kerry
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Levin
Lincoln
Lott
Lugar
Martinez
McCain
McCaskill
McConnell
Menendez
Mikulski
Murkowski
Murray
Nelson (NE)
Obama
Pryor
Reed
Reid
Roberts
Rockefeller
Salazar
Sanders
Schumer
Sessions
Shelby
Smith
Snowe
Specter
Stabenow
Stevens
Sununu
Tester
Thomas
Thune
Vitter
Voinovich
Warner
Webb
Whitehouse
Wyden
NOT VOTING--7
Bayh
Clinton
Enzi
Inouye
Johnson
Lieberman
Nelson (FL)
The amendment (No. 752), as modified, was agreed to.
The ACTING PRESIDENT pro tempore. The Senator from Washington is
recognized.
Mrs. MURRAY. Mr. President, we are moving quickly to finish this
bill. It will take the cooperation of all Senators. I ask everyone to
make sure you are in the Senate Chamber because rollcall votes will be
10 minutes from here on.
We now turn to the Senator from South Carolina.
The ACTING PRESIDENT pro tempore. The Senator from South Carolina is
recognized.
Amendment No. 704
Mr. DeMINT. I ask unanimous consent to call up amendment No. 704 and
ask for its immediate consideration.
The ACTING PRESIDENT pro tempore. The clerk will report the
amendment.
The bill clerk read as follows:
The Senator from South Carolina [Mr. DeMint] proposes an
amendment numbered 704.
Mr. DeMINT. I ask unanimous consent the reading of the amendment be
dispensed with.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendment is as follows:
(Purpose: To prohibit the use of funds to make payments to certain
spinach growers and first handlers)
At the end of chapter 1 of title III, insert the following:
SEC. 3104. SPINACH.
No funds made available under this Act shall be used to
make payments to growers and first handlers, as defined by
the Secretary of Health and Human Services, of fresh spinach
that were unable to market spinach crops as a result of the
Food and Drug Administration Public Health Advisory issued on
September 14, 2006.
Mr. DeMINT. Mr. President, my amendment simply states that no funds
in this act shall be used to make payments to spinach producers.
The House version of this bill includes $25 million for spinach
growers, which all of us know has no place in this bill. Last week, the
Senate spoke unanimously and we voted to block this spending from our
budget process last year. I am asking all my colleagues to support the
removal of this wasteful spending in this emergency war supplemental
bill.
The ACTING PRESIDENT pro tempore. The Senator from Washington.
Mrs. MURRAY. Mr. President, the amendment by the Senator from South
Carolina is a solution looking for a problem. I sit on the
Appropriations Committee. I was there throughout the entire committee
markup. There was never any money for spinach in the Senate version of
this bill. There is not now any money for spinach in the Senate version
of this bill, so adoption of this amendment will not change the
substance of this bill one iota. But if the Senator insists, we will go
ahead and move forward on his amendment. We are happy to take it by a
voice vote if the Senator would consider that.
Mr. DeMINT. I think it is important this body be on record. This will
be a matter of conference, and I think we all need to be on record
showing we do not want it in the final bill.
I ask for the yeas and nays.
Mrs. MURRAY. How much time do I have remaining?
The ACTING PRESIDENT pro tempore. The Senator has 1 minute 14
seconds.
[[Page S4084]]
Mrs. MURRAY. Mr. President, I tell my colleagues on this side of the
aisle, there is no money in the Senate bill for spinach. We do know
there are issues out there affecting our agricultural communities
across the Nation. The bill that is before us addresses many of those
critical issues. This is a supplemental emergency bill, and when there
are emergencies, we are responsible for taking care of them. But the
amendment of the Senator from South Carolina will make no difference in
this bill.
The ACTING PRESIDENT pro tempore. The majority leader is recognized.
Mr. REID. I will use leader time. Mr. President, we are trying to get
a lot of things done today to finish this bill. There are important
committees wanting to meet. Everyone should understand every Democrat
is going to vote for this amendment. This is a waste of time. Everyone
who is going to be on conference knows the Senate is voting for this
amendment. I think it is an effort to slow things down today. I think
it is unnecessary. We are all going to vote for this, but if we want to
waste 15 minutes of the people's time, we can do that. The Senator has
that right.
Mr. DeMINT. I thank the Senator. I ask for the yeas and nays.
The ACTING PRESIDENT pro tempore. Is there a sufficient second? There
is a sufficient second. The question is on agreeing to the amendment.
The clerk will call the roll.
The bill clerk called the roll.
Mr. DURBIN. I announce that the Senator from Indiana (Mr. Bayh) and
the Senator from South Dakota (Mr. Johnson) are necessarily absent.
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
The ACTING PRESIDENT pro tempore. Are there any other Senators in the
Chamber desiring to vote?
The result was announced--yeas 97, nays 0, as follows:
[Rollcall Vote No. 123 Leg.]
YEAS--97
Akaka
Alexander
Allard
Baucus
Bennett
Biden
Bingaman
Bond
Boxer
Brown
Brownback
Bunning
Burr
Byrd
Cantwell
Cardin
Carper
Casey
Chambliss
Clinton
Coburn
Cochran
Coleman
Collins
Conrad
Corker
Cornyn
Craig
Crapo
DeMint
Dodd
Dole
Domenici
Dorgan
Durbin
Ensign
Feingold
Feinstein
Graham
Grassley
Gregg
Hagel
Harkin
Hatch
Hutchison
Inhofe
Inouye
Isakson
Kennedy
Kerry
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Lott
Lugar
Martinez
McCain
McCaskill
McConnell
Menendez
Mikulski
Murkowski
Murray
Nelson (FL)
Nelson (NE)
Obama
Pryor
Reed
Reid
Roberts
Rockefeller
Salazar
Sanders
Schumer
Sessions
Shelby
Smith
Snowe
Specter
Stabenow
Stevens
Sununu
Tester
Thomas
Thune
Vitter
Voinovich
Warner
Webb
Whitehouse
Wyden
NOT VOTING--3
Bayh
Enzi
Johnson
The amendment (No. 704) was agreed to.
Mrs. MURRAY. Mr. President, I move to reconsider the vote.
Mr. COCHRAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Change Of Vote
Mr. BAUCUS. Mr. President, on rollcall vote No. 123, I voted ``nay.''
It was my intention to vote ``yea.'' Therefore, I ask unanimous consent
that I be permitted to change my vote as it will not affect the
outcome.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The foregoing tally has been changed to reflect the above order.)
Amendment No. 649
The ACTING PRESIDENT pro tempore. The Senator from Washington is
recognized.
Mrs. MURRAY. Mr. President, the next amendment in order is the Coburn
amendment, No. 649. We are ready to take this on a voice vote. If there
is no one who wants to speak on the other side, we can move to the
amendment.
Mr. President, I yield back all time.
The ACTING PRESIDENT pro tempore. Without objection, all time is
yielded back.
The question is on agreeing to the amendment.
The amendment (No. 649) was agreed to.
Mrs. MURRAY. Mr. President, I move to reconsider the vote.
Mr. DURBIN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 737, as Modified
The ACTING PRESIDENT pro tempore. The Senator from Washington is
recognized.
Mrs. MURRAY. Mr. President, the next amendment in order is the
Sanders amendment, No. 737. This amendment has also been agreed to on
both sides. If the Senator from Vermont wishes to, he may speak.
The ACTING PRESIDENT pro tempore. The Senator from Vermont is
recognized.
Mr. SANDERS. Mr. President, I will be very brief.
Pursuant to the agreement reached last night, I call up an amendment
I have at the desk, Sanders amendment No. 737, as modified by No. 808.
The ACTING PRESIDENT pro tempore. The clerk will report.
The legislative clerk read as follows:
The Senator from Vermont [Mr. Sanders], for himself, Mr.
Reed, Mr. Bingaman, Mr. Menendez, Mr. Kerry, and Mr. Harkin,
proposes an amendment numbered 737.
Mr. SANDERS. Mr. President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendment is as follows:
(Purpose: To provide funds for the weatherization assistance program)
On page 99, line 4, strike ``ties'' and insert ``ties:
Provided further, That $229,500,000 of the amount provided
shall be used for the weatherization assistance program of
the Department of Energy''.
Mr. SANDERS. Mr. President, this amendment is a bipartisan amendment
cosponsored by Senators Sununu, Bingaman, Menendez, Kerry, Harkin,
Dodd, Wyden, and Clinton. It is also strongly supported by the AARP.
This modification, which has the bipartisan support of the
Appropriations Committee, would partially restore funding for
weatherization programs. The amendment does not use new money. It
simply instructs the Department of Energy to use its fiscal year 2007
appropriations to increase the amount it will spend on weatherization
by $25 million over its current plan.
I think all of my colleagues know the weatherization program is
important for a number of reasons. First, when people have a limited
amount of money, it is absurd that their scarce resources simply go up
into the air because they do not have the money to adequately insulate
their walls or their roofs.
Secondly, if we are serious about global warming, we had better move
toward energy efficiency. We are wasting huge amounts of energy by
seeing people living in homes with inadequate weatherization.
I would ask strong support from my colleagues for this amendment.
The ACTING PRESIDENT pro tempore. The Senator from Washington.
Mrs. MURRAY. Mr. President, this amendment has been agreed to on both
sides. I believe we can do it on a voice vote.
Mr. President, I yield back all time.
The ACTING PRESIDENT pro tempore. Without objection, all time is
yielded back.
The question is on agreeing to the amendment.
The amendment (No. 737) was agreed to.
Mrs. MURRAY. Mr. President, I move to reconsider the vote.
Mr. COCHRAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The ACTING PRESIDENT pro tempore. The Senator from Washington.
Mrs. MURRAY. Mr. President, we are moving rapidly to a finish. We
have one final amendment that needs to be voted on. Then we will have a
manager's package and final passage shortly. I yield to the Senator
from Delaware.
Amendment No. 739
The ACTING PRESIDENT pro tempore. The Senator from Delaware.
[[Page S4085]]
Mr. BIDEN. Mr. President, I call up amendment No. 739.
The ACTING PRESIDENT pro tempore. The clerk will report.
The legislative clerk read as follows:
The Senator from Delaware [Mr. Biden], for himself, Mr.
Kennedy, Mr. Kerry, and Mr. Durbin, proposes an amendment
numbered 739.
Mr. BIDEN. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendment is as follows:
(Purpose: To appropriate an additional $1,500,000,000 for Procurement,
Marine Corps, to accelerate the procurement of an additional 2,500 Mine
Resistant Ambush Protected vehicles for the Armed Forces)
At the end of chapter 3 of title I, add the following:
SEC. 1316. ADDITIONAL AMOUNT FOR PROCUREMENT, MARINE CORPS,
FOR ACCELERATION OF PROCUREMENT OF ADDITIONAL
2,500 MINE RESISTANT AMBUSH PROTECTED VEHICLES
FOR THE ARMED FORCES.
(a) Additional Amount.--The amount appropriated by this
chapter under the heading ``Procurement, Marine Corps'' is
hereby increased by $1,500,000,000, with the amount of the
increase to be available to the Marine Corps for the
procurement of an additional 2,500 Mine Resistant Ambush
Protected (MRAP) vehicles for the regular and reserve
components of the Armed Forces by not later than December 31,
2007.
(b) Supplement Not Supplant.--The amount available under
subsection (a) for the procurement of vehicles described in
that subsection is in addition to any other amounts available
under this chapter for that purpose.
Mr. BIDEN. This amendment is very straightforward. This amendment
moves up $1.5 billion into the supplemental from the 2008 budget. The
effect will be, it will add an additional 2,500 MRAP vehicles into the
field faster. These are the vehicles with the V-shaped hull. This
increases the security of our troops inside these vehicles--who are now
riding in humvees--three to four times.
What it will mean is it is an opportunity to provide 10,000 to 30,000
of our troops four times more protection than they now get riding
around in the humvees when they are attacked by IEDs. That is tens of
thousands of Americans who won't be severely injured or killed.
The Commandant of the Marine Corps and the Chief of Staff of the Army
both have said they need this money moved up so they can get these
additional vehicles into the field earlier. I cannot think of a better
way to explain this amendment than using the words of the Commandant of
the Marine Corps when I spoke to him yesterday.
He said: Senator, this is the highest moral imperative I have as a
Commandant of the Marine Corps.
I hope we will move this money up. I hope we will pass this
amendment. It literally, not figuratively, will save lives.
I yield the floor, and I ask for the yeas and nays.
The ACTING PRESIDENT pro tempore. Is there a sufficient second?
There is a sufficient second.
The yeas and nays are ordered.
Who yields time?
The Senator from Washington is recognized.
Mrs. MURRAY. Mr. President, I yield back all time.
The ACTING PRESIDENT pro tempore. Without objection, all time is
yielded back.
The question is on agreeing to the amendment.
The clerk will call the roll.
Mr. DURBIN. I announce that the Senator from South Dakota (Mr.
Johnson) is necessarily absent.
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
The result was announced--yeas 98, nays 0, as follows:
[Rollcall Vote No. 124 Leg.]
YEAS--98
Akaka
Alexander
Allard
Baucus
Bayh
Bennett
Biden
Bingaman
Bond
Boxer
Brown
Brownback
Bunning
Burr
Byrd
Cantwell
Cardin
Carper
Casey
Chambliss
Clinton
Coburn
Cochran
Coleman
Collins
Conrad
Corker
Cornyn
Craig
Crapo
DeMint
Dodd
Dole
Domenici
Dorgan
Durbin
Ensign
Feingold
Feinstein
Graham
Grassley
Gregg
Hagel
Harkin
Hatch
Hutchison
Inhofe
Inouye
Isakson
Kennedy
Kerry
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Lott
Lugar
Martinez
McCain
McCaskill
McConnell
Menendez
Mikulski
Murkowski
Murray
Nelson (FL)
Nelson (NE)
Obama
Pryor
Reed
Reid
Roberts
Rockefeller
Salazar
Sanders
Schumer
Sessions
Shelby
Smith
Snowe
Specter
Stabenow
Stevens
Sununu
Tester
Thomas
Thune
Vitter
Voinovich
Warner
Webb
Whitehouse
Wyden
NOT VOTING--2
Enzi
Johnson
The amendment (No. 739) was agreed to.
Mrs. MURRAY. I move to reconsider the vote.
Mr. COCHRAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER (Mr. Obama). The Senator from Arizona.
Mr. KYL. Mr. President, I raise a point of order. Under rule XVI,
section 1711 of the bill is legislation on an appropriations bill.
Section 1711 of the substitute amendment makes changes to the
immigration code's bars on entry to the United States for individuals
tied to terrorist activity or groups. Although I agree with the stated
purpose of this provision--to allow the Hmong and other groups that do
not pose a threat to the United States to enter this country--I object
to the language of this provision and have introduced two amendments to
correct that language.
Everyone agrees that groups such as the Hmong and the Montagnards,
who fought bravely alongside U.S. forces during the Vietnam war, should
not be barred from entering this country. If section 1711 were tailored
to aid the Hmong and other groups that do not pose a threat to the
United States, I would have no objection to such a legislative
proposal.
Unfortunately, the text of section 1711 does much more than simply
allow the Hmong to remain in this country. The provision in this bill
would extend the waiver authority in current law to groups that are
definitely not friends of the United States--including to members of
groups that the Secretary of State has designated as Foreign Terrorist
Organizations.
Current law bars, without exception, anyone who is a member or a
representative of a terrorist organization from gaining admission to
the United States. Section 1711 would remove this categorical bar and
allow members of even Tier I terrorist organizations to seek a waiver
and admission to this country.
Tier I terrorist organizations include groups such as the Al-Aqsa
Martyrs Brigade, the group that has been responsible for the majority
of suicide bombings in Israel in recent years. Section 1711 would
extend waiver authority to the Armed Islamic Group and to the Salafist
Group for Call and Combat, the two principal terrorist groups that have
carried out a bloodthirsty campaign massacres, abductions, and rapes in
Algeria over the last 15 years. The provision in the Senate substitute
would extend waiver authority to Hamas, Hezbollah, and Palestinian
Islamic Jihad, and the Senate bill would even extend waiver authority
to al-Qaida.
I do not think that there is a single Member of this body who
believes that any member of al-Qaida, Hamas, or Hezbollah should ever
be considered for admission to this country. Yet the Senate bill would
allow members or representatives of all of these groups to be
considered for entry to the United States.
Another problem posed by section 1711 of the Senate bill is that it
would also make it very difficult to bar entry to someone who has given
material support to a terrorist organization. The section would
effectively require the Department of Homeland Security to prove a
negative--to show that an individual did not act under duress--when it
seeks to bar someone who has given material support to terrorism from
entering this country.
Imagine a situation, for example, where DHS learns that an Iraqi
seeking admission to this country had helped plant improvised explosive
devices in Iraq. Approximately 1,000 U.S. soldiers have been killed by
IEDs since the beginning of the Iraq war. And suppose
[[Page S4086]]
that this hypothetical individual claimed that he acted under duress--
that some unnamed person forced him to plant IEDs. Under the Senate
bill, DHS would have to prove that this person did not act under duress
in order to bar him from the United States. This makes no sense. If we
learn that someone has provided material support to terrorism, and that
person seeks a waiver and entry to this country, at the very least, it
is that person who should bear the burden of proving that he acted only
under duress.
As I mentioned earlier, I have filed two amendments that are designed
to address these problems with section 1711. I have concluded, however,
that there is no reason at all to enact this provision on the emergency
war supplemental. There is no reason that this measure cannot be
enacted through regular order. To that end, I will introduce
legislation this week that will provide relief from terrorism-related
immigration bars to the Hmong and other groups that do not pose a
threat to the United States.
Everyone agrees that groups such as the Hmong should not be barred
from the United States. Moving such a bill through regular order will
also protect the rights of the minority, and allow the full Senate to
ensure that this legislation does not include the excesses that appear
in section 1711. We all agree that we should help the Hmong. But I
would venture that we would also all agree that we should not extend
immigration waiver authority to members of Hamas and al-Qaida.
Mr. LEAHY. Mr. President, the supplemental contains a provision,
section 1711, which was carefully worked out through discussions
between my office, the offices of Senator Specter, Senator Brownback,
Senator Kennedy, Senator Coleman and Senator Feingold, as well as with
representatives of the Department of Homeland Security, the Department
of Justice, the Department of State, and the National Security Council.
This provision contains six subsections, (a) through (f).
Subsections (a) and (d) were written by the administration.
Subsections (b) and (f) were written by the Senator from Arizona,
Senator Kyl.
Subsection (c) provides an exception for cases involving duress,
which is consistent with the administration's policy except that this
provision would codify it into law.
Section (e) is a reporting requirement.
That is the whole provision. It represents months of discussion and
compromise on an issue that has been a focus of concern of faith-based
organizations and humanitarian organizations, conservative and liberal,
Democratic and Republican.
Here is the background.
Current law, as a result of overbroad amendments in the PATRIOT Act
and Real ID Act, has been used to bar refugees and asylum seekers who
were either members of groups who fought on the side of the United
States, such as the Hmong, the Montagnards, and the Northern Alliance
in Afghanistan, or who were the victims of terrorist groups and forced
to provide ``material support,'' such as food, shelter, or other
services.
Administration officials have acknowledged that they have been
inexcusably slow to deal with this problem. Thousands of refugees and
hundreds of asylum seekers have been in limbo as a result. We now face
the additional problem of Iraqi refugees, 7,000 of whom the President
says should be admitted to the United States, being barred from
admission unless we fix the law.
After considerable prodding, the administration has moved in the
right direction. Two weeks ago, it took another welcome step, although
we have not yet seen the results of this reported change of policy.
The number of refugees admitted to the United States would not be
increased or decreased by this provision. That is determined by the
numerical limit set by the President each year and by the amount we
appropriate for refugee admissions.
Numerous editorials have described the horrific consequences for
refugees who have been victimized by current law.
Just the titles of these editorials tell the story: ``Shutting Out
Terrorism's Victims,'' ``Doctors Without Refuge,'' ``Anti-terror laws
keeping out old Vietnam allies,'' ``Punishing the Persecuted,'' ``U.S.
denies refuge to friends, the abused,'' ``The Refugee Mess,''
``Excluding Friends,'' and finally, ``Fix This Law.''
I will ask that just three of these editorials be printed in the
Record at the close of my remarks.
This provision is a compromise that would get our law back in sync
with our values, but now the Senator from Arizona, Mr. Kyl, has raised
a rule XVI point of order against this provision and had it stricken
from the bill.
It is regrettable that one Senator, for whatever reason, has decided
to torpedo this bipartisan effort. We have worked with the
administration. We have worked with refugee organizations that know the
hardship current law is causing for thousands of innocent people,
legitimate refugees and asylum seekers, who have been denied admission.
We have worked to find a reasonable middle ground.
But that isn't good enough for the Senator from Arizona, so we are
back to square one. Individuals who fought alongside the United States
in Vietnam, in Afghanistan, and elsewhere will continue to be barred
under current law. Our provision would have fixed this illogical,
unfair result, but now that provision has been stricken so those former
allies--the Hmong, the Montagnards and others--will remain excluded.
Innocent victims of the material support bar will continue to wait
for the Federal bureaucracy to address their cases--a wait that is well
into its third year. Victims of terrorist groups like the FARC in
Colombia or the Lord's Resistance Army in Uganda get no help from the
Congress.
I regret this action by the Senator from Arizona. By striking this
provision he ensures the perpetuation of a policy that is contrary to
our values, to our morals, and to our national traditions.
I wish to thank all Senators who have joined in this effort but
particularly Senator Brownback, Senator Specter, Senator Kennedy,
Senator Coleman, and Senator Feingold. I also wish to thank
representatives of the humanitarian and other groups who have provided
helpful information and advice, as well as officials in the
administration who have made a sincere effort to work with us.
While the Senator from Arizona has singlehandedly prevented us from
moving forward at this time, we will continue to work together to fix
the law in a manner that reaffirms our commitment to the words that are
carved in the Statue of Liberty.
Mr. President, I ask unanimous consent that the aforementioned
editorials be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Washington Post, Oct. 24, 2006]
The Refugee Mess
The Bush administration planned to admit 70,000 refugees
this past fiscal year; Congress provided funding for 54,000.
In the event, the United States admitted fewer than 42,000--a
figure significantly lower than in either of the previous two
years. The main reason for the shortfall in this crucial
humanitarian program, according to recent State Department
testimony before Congress, is the irrationally broad
definitions in current law regarding terrorism, terrorist
groups and material support for terrorism--definitions that
end up excluding as terrorists people who should be
protected.
The law bars as refugees people who have been members or
supporters of any group with ``two or more individuals,
whether organized or not, [which] engages in, or has a
subgroup which engages in'' activities as broad as using an
``explosive, firearm or other weapon or dangerous device.''
The result has kept out the sort of people America's
traditionally generous refugee policy was designed to help.
The law gives the administration some waiver flexibility,
which it rightly has begun using recently on behalf of many
ethnic Karen and Chin victims of the Burmese military junta.
But that is only a partial fix, for the administration does
not have the power to admit refugees who were members of
groups that bore arms--even those allied with this country.
So the law continues to keep out what Ellen Sauerbrey,
assistant secretary of state in charge of refugees, recently
described to a Senate subcommittee as ``other meritorious
cases, such as Cuban anti-Castro freedom fighters, Vietnamese
Montagnards who fought alongside of U.S. forces and Karen who
participated in resistance against brutal attacks on their
families and friends by the Burmese regime.''
[[Page S4087]]
The administration seems newly open to the idea of fixing
the law to give itself flexibility concerning members of
groups that meet the absurdly broad definition of terrorist.
That would be a breakthrough. A country's willingness to
welcome victims of repressive governments and war zones is a
measure of its values, and this country has traditionally led
the world in refugee resettlement. Not every armed group is a
terrorist organization; American policy should not treat
victims of the worst sort of violence like perpetrators of
it.
____
[From the New York Times, Apr. 3, 2006]
Terrorists or Victims?
In Sierra Leone there is a woman who was kept captive in
her house for four days by guerrillas. The rebels raped her
and her daughter and cut them with machetes. Under America's
program to resettle refugees, she would be eligible to come
to safety in the United States. But her application for
refuge has been put on indefinite hold--because American law
says that she provided ``material support'' to terrorists by
giving them shelter.
This law is keeping out of the United States several
thousand recognized refugees America had agreed in principle
to shelter. By any reasonable definition, they are victims,
not terrorists.
A Liberian woman was kidnapped by a guerrilla group and
forced to be a sexual slave for several weeks. She also had
to cook and do laundry. These services are now considered
material support to terrorists. In Colombia, the United
Nations will no longer ask the United States to admit dozens
of refugees who are clearly victims, since all their
predecessors have been rejected on material support grounds.
One is a woman who gave a glass of water to an armed
guerrilla who approached her house. Another is a young man
who was kidnapped by paramilitary members on a killing spree
and forced to dig graves alongside others. The men, many of
whom were shot when their work was finished, never knew if
one of the graves would become their own.
The law makes no exception for duress. It also treats any
group of two or more people fighting a government as
terrorists no matter how justified the cause, or how long ago
the struggle. So the United States has turned away Chin
refugees, for supporting an armed group fighting against the
Myanmar dictatorship, which has barred them practicing their
religion. The United States has acknowledged that the law
would also bar Iraqis who helped American marines find
Jessica Lynch.
The law does not formally reject these applicants but
places them on indefinite hold. No one accused of material
support has ever had that hold lifted. The Department of
Homeland Security can supposedly waive the material support
provision but has never done so.
Clearly, Congress needs to add an exception for duress,
allow the secretary of state to designate armed movements as
nonterrorist, and allow supporters of legitimate groups to
gain refuge. These changes would pose no risk of admitting
terrorists to the United States and would keep America from
further victimizing those who have already suffered at the
hands of terrorist groups.
____
[From the Minneapolis Star-Tribune, Jan. 10, 2007]
U.S. Denies Refuge to Friends, the Abused
Franz Kafka, Czech writer of the surreal and absurd, could
have imagined this, perhaps: A young Hmong man fights with
Americans against the Communist Laotian government. Decades
later, he is accepted into the United States as a refugee.
But he can't get a green card that will allow him to remain
permanently and work in the United States. He's run afoul of
an anti-terrorism law prohibiting asylum for people who have
provided ``material support'' to terrorists. Incredibly, he's
not alone, a situation that requires the remedial action
promised by Senate Judiciary Committee Chairman Patrick
Leahy, D-Vt.
The issue isn't the law itself but its interpretation by
the Department of Homeland Security. The department's
definition of ``material support'' for terrorism is so broad
it has caught, among others, a refugee nurse from Colombia
who was kidnapped and forced to treat a member of a guerrilla
group.
Even strong Bush administration supporters--the
conservative Hudson Institute; Gary Bauer, president of
American Values; and the Southern Baptist Convention's Ethics
and Religious Liberty Commission--are outraged by Homeland
Security's inflexibility. In words he probably thought he
would never utter, the Hudson Institute's Michael Horowitz
says, ``The key to ending these policies is in the hands of
the new Democratic majority'' in Congress.
Leahy, a persistent critic of the ``material support''
provision, has promised hearings on the issue. He should be
pressed to follow through. It's beyond outrageous that a law
intended to help protect Americans from terrorists should be
used to punish old allies and further terrify victims seeking
refuge from the abuse they suffered in their home countries.
The PRESIDING OFFICER. The point of order is well taken.
The Senator from Washington.
Mrs. MURRAY. Mr. President, I ask unanimous consent that the
following amendments be agreed to en bloc: amendment No. 661 by Senator
Kohl; amendment No. 664, Obama, as modified; No. 677, Leahy; No. 679,
Collins, as modified; No. 681, Leahy, as modified; No. 683, Senator
Dorgan; No. 722, Senators Domenici and Bingaman, as modified; No. 726,
Kerry, as modified; No. 728, Bond, as modified; No. 754, Mikulski and
Shelby, as modified; No. 757, Byrd; No. 759, Clinton; No. 771, Senator
Snowe; No. 784, Senator Durbin; No. 799, Senators Lugar and Kennedy, as
modified; and ask for their immediate consideration. I send the
modifications to the desk.
Mr. COCHRAN. Mr. President, reserving the right to object, I will be
compelled to object to that request in that there are some items here
that have not been cleared on this side of the aisle. That has just
been brought to my attention. To give us an opportunity to check each
one of these items in the request, I do object.
The PRESIDING OFFICER. Objection is heard.
The Senator from Washington.
Mrs. MURRAY. Having heard the objection, it is unfortunate. We have
been trying to work through a number of what we had hoped would be
agreed-upon amendments, but since they can't be considered at this
time, all debate time has expired, and I understand we will move to
third reading.
The PRESIDING OFFICER. The Senator from South Carolina.
Change of vote
Mr. GRAHAM. Mr. President, on rollcall vote 118, I voted ``yea.'' It
was my intention to vote ``nay.'' Therefore, I ask unanimous consent
that I be permitted to change my vote since it will not affect the
outcome.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from South Carolina.
Mr. DeMINT. Mr. President, I make a point of order that section 431,
dealing with the tree assistance program, starting on page 150, line 13
and ending on page 151, line 15, violates rule XVI of the Standing
Rules of the Senate.
Mr. COCHRAN. Reserving the right to object, would the Senator state
what the substance of this matter is in the bill?
Mr. DeMINT. This section of the bill deals with the tree assistance
program. It has no business being in a war supplemental. It is clearly
legislating on an appropriations bill, and I believe it violates rule
XVI.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. Mr. President, I raise the defense of germaneness on
this point of order.
The PRESIDING OFFICER. The question is, Is the section germane?
Mr. DeMINT. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
At the moment there is not a sufficient second.
The Senator from Kentucky.
Mr. BUNNING. Mr. President, may we have a clarification of what is
going on?
The PRESIDING OFFICER. The question is, Is the section germane to
language in the underlying House bill?
Mr. BUNNING. Wait a minute. Would you continue? If this language is
germane and a point of order has been lodged against it, is that----
The PRESIDING OFFICER. A point of order has been lodged against the
section.
Mr. BUNNING. How does the Parliamentarian rule?
The PRESIDING OFFICER. It is a vote of the Senate as to whether there
is sufficient language in the House bill for the defense of
germaneness.
The question is, Is the section germane?
Mr. BUNNING. In other words, the Parliamentarian is throwing it back
to the Senate to vote whether it is germane?
The PRESIDING OFFICER. As required by the rule.
Mr. BUNNING. OK.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. Mr. President, could we ask for a ruling from the Chair
on the germaneness of the underlying section?
The PRESIDING OFFICER. The question is, Is the section germane?
Mr. DeMINT. Mr. President, I ask for the yeas and nays and encourage
my colleagues to vote ``no.''
The PRESIDING OFFICER. Is there a sufficient second?
[[Page S4088]]
There is a sufficient second.
The clerk will call the roll.
The legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from South Dakota (Mr.
Johnson) is necessarily absent.
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 57, nays 41, as follows:
[Rollcall Vote No. 125 Leg.]
YEAS--57
Akaka
Baucus
Bayh
Biden
Bingaman
Bond
Boxer
Brown
Byrd
Cantwell
Cardin
Carper
Casey
Clinton
Cochran
Coleman
Conrad
Dodd
Dorgan
Durbin
Feingold
Feinstein
Harkin
Hutchison
Inouye
Kennedy
Kerry
Klobuchar
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
McCaskill
Menendez
Mikulski
Murray
Nelson (FL)
Nelson (NE)
Obama
Pryor
Reed
Reid
Rockefeller
Salazar
Sanders
Schumer
Smith
Specter
Stabenow
Stevens
Tester
Webb
Whitehouse
Wyden
NAYS--41
Alexander
Allard
Bennett
Brownback
Bunning
Burr
Chambliss
Coburn
Collins
Corker
Cornyn
Craig
Crapo
DeMint
Dole
Domenici
Ensign
Graham
Grassley
Gregg
Hagel
Hatch
Inhofe
Isakson
Kyl
Lott
Lugar
Martinez
McCain
McConnell
Murkowski
Roberts
Sessions
Shelby
Snowe
Sununu
Thomas
Thune
Vitter
Voinovich
Warner
NOT VOTING--2
Enzi
Johnson
The PRESIDING OFFICER. The section is voted germane and the point of
order falls.
Mrs. MURRAY. I move to reconsider the vote.
Mr. COCHRAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. Mr. President, what is the regular order?
The PRESIDING OFFICER. The regular order is that other points of
order remain in order.
The Senator from Tennessee.
Mr. ALEXANDER. Mr. President, I raise a point of order that section
3001 constitutes general legislation and is not in order to a general
appropriations bill under rule XVI.
The PRESIDING OFFICER. The point of order is sustained. The language
is stricken.
Mr. ALEXANDER. I thank the Chair.
Mr. STEVENS. I turn now to an issue that should be of concern to us
all, and that is the safe transport of our civilian contractors into
and out of Iraq and Afghanistan. On occasion, these U.S. citizens are
flying on poorly regulated charter aircraft that are ultimately paid
for by funds provided by Congress to the Department of Defense and the
Department of State.
Mr. INOUYE. I believe that I recently read about this issue in the
press. I am concerned as well that the lack of regulation and oversight
of these charter aircraft put our citizens at risk.
Mr. STEVENS. I am also informed that the aircraft, air carriers, and
air charter providers being used to provide the charters for our
contractors in Iraq are, in some cases, using poorly trained crews to
fly outdated and poorly maintained aircraft. The Senate Armed Services
Committee will most likely address this matter during their
consideration of the fiscal year 2008 Defense authorization bill. We
should consider requiring that air charter operates in Iraq and
Afghanistan, funded either directly or indirectly by congressional
appropriations, meet safety and maintenance standards equal to those
required by charters in the U.S.and European Union.
Mr. INOUYE. I agree that air transport safety of our citizens in Iraq
and in Afghanistan is an important issue and I endorse your comments on
this matter. We should work to take the steps needed to ensure the
safety of our civilian contractors.
Geothermal Energy Research Funding
Mr. REID. I rise to enter into a brief colloquy with Senator Dorgan,
chairman of the Energy and Water Development Appropriations
Subcommittee, regarding section 3201 of title III of Senate amendment
No. 641 to H.R. 1591, the emergency supplemental appropriations bill
for fiscal year 2007. I thank the Senator for including in the
committee's substitute amendment the language that I requested to
ensure that important geothermal energy research can continue in fiscal
year 2007, instead of being closed down pursuant to the
administration's ill-advised spending plan.
Mr. DORGAN. I thank the leader for his support and continuing
interest in geothermal and renewable energy. The committee's substitute
amendment provides $22,762,000 for geothermal energy research at the
Department of Energy in fiscal year 2007. This is the same level of
funding as provided in fiscal year 2006. After the administration
proposed terminating the geothermal research program in its fiscal year
2007 budget request, the Senate Appropriations Committee rejected that
proposal last year in its report accompanying the fiscal year 2007
energy and water appropriations bill, S. Rept. 109-274. Section 3201
will ensure continuation of this vital program.
Mr. REID. I thank the Senator from North Dakota for his support for
the geothermal energy program and his leadership on national energy
policy. As the Senator knows, geothermal energy is a very important
resource for Nevada and all Western States to develop to help address
our national energy and environmental security problems. There have
been several new reports in the past few months from the Geothermal
Energy Association, the National Renewable Energy Laboratory, and the
Massachusetts Institute of Technology that show the tremendous untapped
potential of this renewable resource. Geothermal energy is clearly an
important resource that can provide very valuable clean, baseload
power. Its advantages are many and obvious, and the Department of
Energy should be expanding its efforts in this area not reducing them.
Given the hostility of the Department of Energy, DOE, and the
administration toward expanding our Nation's massive geothermal energy
potential through research and deployment, can the chairman of the
Energy and Water Subcommittee convey any specific intent about how the
appropriated funds in this amendment should be used?
Mr. DORGAN. First of all, the department should continue critical
efforts to support new technology and deployment, including funding of
existing contracts and awards under previous solicitations, but the
department should be rapidly implementing and supporting the geothermal
provisions of the Energy Policy Act of 2005.
Based upon the studies and reports the Senator from Nevada has
mentioned, it should also be a priority for the department to support
resource development and exploration technology, including continued
both existing and new Geothermal Resource Exploration and Development,
GRED, efforts that are underway at the DOE.
Mr. REID. I thank the Senator from North Dakota for his comprehensive
answer. I hope that as we consider the fiscal year 2008 energy and
water appropriations bill, Congress will provide expanded support for
the geothermal energy program, along with more specific guidance as
needed by the distinguished chairman.
Mr. DORGAN. I appreciate the Senator's views on the importance of
this program and share the Senator's commitment to ensuring an
effective DOE geothermal program that works to expand our Nation's use
of this important, renewable energy resource.
Mr. SPECTER. Mr. President, I seek recognition to discuss a matter of
the utmost importance, a pay raise for judges and justices of the
United States.
The salaries of article III judges are inadequate for the stature and
duties that are attendant to the job. The low salaries threaten the
independence and excellence of the judiciary.
The Framers sought to ensure that the Federal judges would be
independent--free from persuasion--to impartially apply the law.
Alexander Hamilton wrote in the Federalist No. 79: ``Next to permanency
in office, nothing can contribute more to the independence of the
judges than a fixed provision for their support. . . . In the general
course of human nature, a
[[Page S4089]]
power over a man's subsistence amounts to a power over his will.''
For this reason, though Congress was charged with providing for the
judiciary's support, judges were given salary protection in the
compensation clause in article III, section 1 of the U.S. Constitution.
This clause provides that ``the Judges, both of the supreme and
inferior Courts, shall hold their offices during good Behavior, and
shall, at stated Times, receive for their Services a Compensation which
shall not be diminished during their Continuance in Office.'' The
Framers gave judges salary protection so that they could be
independent, free from the threat of salary diminution by Congress.
They recognized that independence was key to the ability of judges to
implement the rule of law without fear or favor. Judicial independence
is the cornerstone of our legal system, which has been the model for
judiciaries throughout the world.
This constitutional protection against salary diminution, so central
to judicial independence, is undermined when judicial salaries are
allowed to steadily decline through neglect. And the independent
judiciary our forefathers envisioned is undermined when Congress fails
to attend to the needs of its principals and insists on tying of their
salaries to those of elected leaders.
The last time Congress significantly raised the pay of Federal judges
was in 1989, when the Ethics Reform Act raised their salaries by 25
percent. At the same time, however, the act curtailed judges' ability
to earn outside income. Although the act provided for annual cost-of-
living adjustments, these annual increases have not been realized due
to congressional inaction in 5 of the last 13 years. Thus, the real pay
of judges has continued to decline--12 percent since the Ethics Reform
Act was enacted. The decline of judicial salaries since 1969 is even
starker--the real pay of district judges has decreased by nearly 25
percent since 1969. During the same time period, the salary for the
average American worker increased by about 19 percent.
Obviously, we cannot equate the judges' pay with that of ordinary
working Americans. No one would argue that Federal judges' salaries are
worse than those of the vast majority of American taxpayers. However,
Federal judges' pay has not kept pace with the salary increases of
their peers within the legal profession. In 1969, Federal judges'
salaries exceeded those of top law school deans by 21 percent. Today,
in contrast, Federal district judges earn about half as much as deans
at these law schools. In fact, the salary of a district judge today--
$165,200--is a mere $20,000 more than what a first year associate at a
New York law firm earns. Partners in law firms often earn an excess of
$1 million per year.
Nor have judicial salaries kept up with the salaries of other
government servants. The Chief Justice of the United States earns
$212,100, while the Chief Learning Officer at the Federal Deposit
Insurance Corporation earns up to $257,134. Many other government
employees can receive in excess of $200,000 per year in compensation,
while judges for the courts of appeal earn $175,100 and district court
judges earn $165,200.
Chief Justice Roberts and Justice Kennedy have both recently
addressed the toll that these comparatively low judicial salaries are
taking on his fellow justices and judges. On February 14, 2007, Justice
Kennedy addressed the Judiciary Committee and related that in more than
30 years as a judge, he has never seen his ``colleagues so dispirited
as at the present time.'' He testified that ``if there is a continued
neglect of compensation needs,'' he is concerned that low morale will
lead to a judiciary that ``will be diminished in its stature and its
capacity.'' Chief Justice Roberts also addressed this problem, devoting
his entire 2006 Year End Report on the Federal Judiciary to the topic.
He raised concerns that the low salaries of judges threaten the ability
of the judiciary to draw the best and the brightest legal minds into
service. The Chief Justice raised the alarm that ``without fair
judicial compensation we cannot preserve the quality and independence
of our judiciary, which is the model for the world.'' Further, he fears
that the relative inadequacy of judicial compensation is cause for
judges to leave the bench for more lucrative careers elsewhere. He
wrote that ``[i]f judicial appointment ceases to be the capstone of a
distinguished career and instead becomes a stepping stone to a
lucrative position in private practice, the Framers' goal of a truly
independent judiciary will be placed in serious jeopardy.''
On a related note, I would like to address the notion that judicial
salaries should be linked to salaries for Senators and Members of the
House. Judges should not be held hostage because political winds make
it difficult for elected leaders to raise their own salaries. It is
high time to dispense with the idea that the two ought to be linked.
The judicial branch is separate but equal to the legislative branch,
each with its own needs, each of equivalent stature. We cannot continue
to humble the judiciary, neglecting our constitutional mandate to
provide for its support, ignoring its independence, by tying judges'
compensation to our own.
The problems of inadequate judicial compensation and the linking of
judicial salaries to those of elected leaders are not new. Chief
Justice Rehnquist raised the inadequacy of judicial compensation for
nearly 20 years, and the National Commission on the Public Service--the
``Volcker Commission''--addressed judicial pay increases and linkage in
its 2003 report on revitalizing the Federal Government. The Commission
recommended a substantial pay raise for judges, calling the judicial
compensation ``the most egregious example of the failure of federal
compensation policies.'' The Commission also recommended breaking the
link between salaries for Members of Congress and those for judges. The
Commission admonished Congress that ``judicial salaries must be
determined by procedures that tie them to the needs of the government,
not the career related political exigencies of members of Congress.''
The American Bar Association and the Federal Bar Association have also
endorsed increasing judicial salaries and delinking judicial salaries
from those of elected leaders.
It is imperative that Congress address a judicial salary increase
soon and decouple the salaries of judges with those of Members of
Congress. I urge my colleagues to join me in this effort to ensure that
the salaries for our judicial brethren are commensurate with the duties
and stature of their positions and that salary policy respects the
independence of this coequal branch of government. Our failure to act
prevents us from showing proper respect to a coordinate branch of our
constitutional government.
Mr. McCAIN. Mr. President, this emergency supplemental appropriations
bill contains $121.7 billion in funding, approximately $19 billion
above the President's request, and is replete with earmarks and other
nonemergency spending. Additionally, this bill would establish a
timeline for the withdrawal of American troops from Iraq, regardless of
the conditions there. Such a mandate would have grave consequences for
the future of Iraq, the stability of the Middle East and the security
of Americans at home and abroad. For these reasons, I do not support
this bill.
I support full funding for our troops in this time of war, and I
believe that Congress, which authorized the wars in Iraq and
Afghanistan, is obligated to give American troops everything they need
to prevail in their missions. Unfortunately, the must-pass nature of
this bill has proven all too tempting for Senators who could not
restrain their profligate impulses to pile on spending unrelated to
fighting the global war on terror.
This bill exhibits little evidence that Congress respects the solemn
responsibility to be custodians of the taxpayers' dollars. In a time of
war, with large Federal budget deficits, at a time when Americans
deserve to keep more of their earnings at home, any rational observer
would counsel restraint. Yet this emergency supplemental bill is
stuffed with scarce dollars for the special interests, just as the
measure approved by the House last week.
The Dallas Morning News editorial board wrote last week with respect
to the House-passed bill that ``turning the President's $100 billion
supplemental war spending request into a $124.6 billion, pork-laden
mess'' is no way to show support for the troops, adding
[[Page S4090]]
that ``support for the troops takes the odd form of $25 million for
spinach growers . . . $1.48 billion for livestock farmers . . . and $74
million `to ensure the proper storage of peanuts.' ''
Unfortunately, the Senate has chosen to follow the House's misguided
lead by adding a host of nonemergency and unrequested provisions to the
measure pending before us--a measure that is desperately needed to fund
the ongoing military missions.
Let me mention some of the unrequested items contained in this bill:
There is $3 million for sugar cane growers, of which the entire
amount will go to one Hawaiian cooperative. Just last year Congress
provided up to $40 million for Florida sugar cane growers in an
emergency supplemental bill. I suppose no ``emergency supplemental''
bill is complete without a sweetener for sugar cane growers.
There is $165.9 million for fisheries disasters. Just last year
Congress provided $95 million in another emergency supplemental bill to
assist fishermen in recovering from fisheries disasters and to aid
oyster bed and shrimp ground rehabilitation. This year, Congress's
generous aid moved from the eastern seaboard to the west coast with
over $60 million alone to assist salmon fishermen in Oregon and
California.
There is $3,500,000 for the Capitol Guide Service and Special
Services Office, to be available until September 2008. I was unaware
that we had emergency tour guide needs in addition to our emergency
troops' funding needs.
There is $13 million for research to develop mine safety technology.
Congress provided $35 million in last year's emergency supplemental
bill to hire an additional 217 mine safety inspectors, and $10 million
for mine safety research, so I must question why this latest funding
cannot wait for the regular appropriations process.
There is $22.76 million for geothermal energy research. While I
support renewable energy research to reduce our dependency on oil, this
funding was not part of the administration's budget request. Does
geothermal energy research qualify as an emergency spending need? No,
it does not.
There is $7 million for water quality research at pig farms in
Missouri. Specifically, the bill directs the EPA to provide a $7
million grant to Water Environment Research Foundation in Alexandria,
VA, to research water quality issues related to pig farms in Missouri.
As many of us have stated, there is true ``pork'' in this bill as this
earmark illustrates.
There is $2 million for the University of Vermont's Educational
Excellence Program. This project is essentially identical to an earmark
that was proposed last year. It was rejected in last year's final bill,
and should not be included again this year.
There is $40 million for a ``Tree Assistance Program,'' to aid
``fruit and nut tree producers'' and other producers of a ``Christmas
tree'' or ``potted shrub'' or ``ornamental tree.'' This bill is not
only a big Christmas gift to special interests, but it also comes with
a Christmas tree.
There is $95 million to dairy producers.
There is $20 million for reimbursements to Nevada, Idaho and Utah for
``insect damage'' from grasshoppers, crickets, and others. These pesky
insects are now richer than most residents in those States.
There is $24 million to sugar beet producers as compensation for
production losses. These producers should be ``beet red'' over this
handout.
There is $13 million for the Ewe Lamb Replacement and Retention
Program. Under this program, eligible livestock owners receive $18 for
each qualifying ewe lamb. That means this provision would cover up to
722,222 sheep. Perhaps my colleagues think increasing our Nation's
sheep stocks is somehow a viable alternative to the President's troop
increase in Iraq? I doubt the troops appreciate the priority that we
have placed on ewe lambs breeding in this bill. It is a ``baad''
earmark.
There is $6 million for crops damaged by floods in North Dakota. Yet
another repeated attempt for funding that was rejected in last year's
emergency supplemental.
There is $5 million for irrigation repairs in Montana. Of the $35
million provided to the USDA Emergency Conservation Programs, which was
not requested by the administration, the bill earmarks $5 million for
repairs to damaged irrigation ditches and pipelines in the State of
Montana.
There is $30 million for the Farm Service Agency. On top of all the
aforementioned programs, the bill provides $30 million for
administration costs at the Farm Service Agency to ensure the Federal
Government has enough employees to actually carry out all the new
programs and new spending under this agriculture title. Here we see the
underreported runaway effect of porkbarrel politics: more pork
translates into bigger government, bigger government means larger
administrative overhead, and large administrative overhead means
greater costs to American taxpayers.
There is $388.9 million for funding a backlog of old Department of
Transportation highway projects. The taxpayers just provided over $24
billion in unauthorized highway projects in 2005, but Congress in its
infinite wisdom has seen fit to provide another $388 million in this
bill.
This appropriations bill also includes numerous authorizing
provisions, such as section 3001, which uses the emergency supplemental
to authorize certain outdoor signs that were damaged, abandoned, or
discontinued as a result of a hurricane in certain regions to be
repaired, replaced, or reconstructed within 24 months of enactment. The
bill also restricts authorization to the Department of Transportation
to implement a provision authorized by Congress in the North American
Free Trade Agreement that would allow Mexican and U.S. trucks to
operate across the border, thereby facilitating free trade and
benefiting the economy.
Once again, the appropriators have included a massive agriculture
disaster assistance package in the emergency supplemental. The language
before us today is strikingly similar to language that appeared in the
2006 emergency supplemental and to an amendment that was rejected just
last December. As my colleagues surely remember, the 2006 Senate-passed
emergency supplemental faced a veto threat because of the unrequested
agricultural disaster package it contained. It faces the same threat
today.
Most shockingly still, the bill actually underfunds the Army, Navy,
Air Force, Marine Corps and Defense-Wide Operation and Maintenance
accounts by nearly $1.4 billion, withholding funds from accounts
directly related to fulfilling the wartime needs of the military. This
is disgraceful.
This spending would be laughable if it weren't so tragic. We are at
war--a war that has cost us a great deal in blood and treasure and
which inevitably will cost us more still. Our troops, who fight so
bravely on our behalf and who so love their country that they are
willing to sacrifice everything--everything--in order to defend it,
show incredible courage in carrying out their duties in Iraq and
Afghanistan. And so it is only right that we, the elected leaders
entrusted to preserve the common welfare, show just a modicum of the
sacrifice, courage, and restraint that these warriors exhibit every
day.
The Baltimore Sun editorialized last Sunday:
President Bush requested that Congress quickly fund the
troops serving in Iraq and Afghanistan and debate the war
strategy separately. Yet Congress chose to hold troop funding
hostage to pork-barrel spending and to provide terrorists
with a countdown clock to America's exit from Iraq. Lawmakers
must show that [past] promises of fiscal restraint were not
meaningless by providing a clean bill for President Bush to
sign. The troops deserve no less.
I agree it is time to exercise the fiscal discipline commensurate
with the responsibilities entrusted to us by the American people and to
provide our troops with the support necessary to win the war in Iraq.
This bill, which provides insufficient funding for our Armed Forces and
a damaging withdrawal deadline, sends the wrong message to our troops,
our enemies, and the American taxpayer. The Dallas Morning News
continued in its editorial:
[S]etting an arbitrary date for withdrawal only handcuffs
the troops trying to carry out their mission--and gives hope
to their ene-
[[Page S4091]]
mies . . . We hope--the supplemental war-spending bill does
not prove to be a reminder to Americans why the Constitution
invested commander-in-chief responsibilities in one
president, instead of 435 members of Congress.
This bill will be vetoed, and I will strongly support sustaining that
veto. This bill is a perfect example of why I have long supported a
President having line-item veto authority. There is some necessary
funding in this bill that is urgently needed to support our troops in
Iraq, but, unfortunately, the bill is saddled with too much wasteful
spending and a regrettable war strategy to allow me to support it.
Mr. REID. Mr. President, I heard the Senator from Tennessee arguing
about a provision in the disaster recovery portion of the supplemental
relating to the private property rights of billboard owners. First let
me note that the bill we voted on was not simply the Iraq supplemental.
From the start, it has always been a supplemental that also included
provisions for hurricane and natural disaster recovery efforts.
Obviously, the Iraq portion of the supplemental is the most important
part of the bill, but the supplemental has always also had a disaster
recovery title, which is why we saw a majority of members of both
Chambers supporting these disaster-related provisions.
I respect the Senator from Tennessee and appreciate his sincerity on
the important issue he spoke on. I was disappointed, though, that there
was much in what the Senator said that was just plain wrong.
The Senator claimed that the provision at issue was ``amnesty for
illegal billboards.'' I don't know what it is these days with the use
of the term ``amnesty,'' but some people don't seem to understand what
the word means in any context.
All of the billboards affected by the provision are legal. Some of
them have been standing legally for decades. But we are not talking
about creaky old billboards; many of the billboards at issue are only a
few years old, and in more recent years the state they are in happened
to changed density or zoning requirements, but sensibly grandfathered
in the existing structures.
Many of the billboards at issue provide advertising for small
businesses, important information for U.S. drivers, public service
announcements, and fuel local tourism industries throughout America. In
short, the types of billboards at issue are very common, are a source
of information and revenue for States, and are regulated by states.
Saying they are illegal or that we are providing amnesty is a nice
rhetorical flourish but is just plain wrong.
The reality is that for decades, the Federal Government, in
compliance with law and regulation, deferred to the States in
determining whether billboards could be rebuilt or not after a
hurricane or other natural disaster. For decades, this issue was not an
issue. Then, in recent years, the Federal Government did an about-face
and began dictating terms to the States, threatening to withhold
Federal highway funds if the States did not trample on private property
rights.
Ironically, Tennessee was one of the States that felt the heavy hand
of the Federal Government's purse strings. ``Tennessee had a decades-
long history-of allowing billboards to be rebuilt after natural
disasters. There are probably hundreds of letters from Tennessee
granting permission to rebuild after natural disasters, including many
from within the past year. Recently, however, the Federal Government
told Tennessee it needed to change its policies or it would lose
millions of dollars in Federal funding. Tennessee felt that it had no
choice, so it changed its policy.
The provision at issue is very simple, it returns us to where we were
before the Federal Government changed its policy. It respects States
rights and private property rights--principles that people in the West
understand well. I am surprised that a small group of Members on the
other side of the aisle are opposed to States rights and private
property rights. This is especially so, since other Members on the
other side of the aisle have traditionally supported this provision,
including Members from Louisiana and Mississippi, two of the States hit
hardest by the new Federal Government stance on this issue.
The proposal ensures that states that want to allow these billboards
to be rebuilt will have that option. If the State does not want to
allow the billboards, it does not have to. That was the way things
worked for decades.
But, under the new approach by the Federal Government, even if a
State thinks the billboards provide a valuable source of revenue or
public service and wants to allow them to be rebuilt, the Federal
Government stands in the way and prohibits the State from allowing the
billboard to go back up. It is about states rights.
So the gentlemen from Tennessee, Florida, and Alabama, are all
basically taking a position that the Federal Government knows better
than their own States.
Further, the proposal is about private property rights. It ensures
that companies and small businesses whose billboards have been
destroyed by the hurricane will not lose all of the value of their
property.
This is just a matter of basic fairness. The Katrina portion of the
supplemental included billions of dollars to help people rebuild their
houses, to help private schools rebuild their facilities and programs,
and to help small businessowners rebuild their businesses. The Katrina
portion of the supplemental was all about rebuilding.
But, a small group of my colleagues on the other side of the aisle
seems to think that this group of private property owners should be the
exception--they should not be able to rebuild and reclaim their
property just because their property is disfavored by some. I don't
know why these folks are opposed to private property rights and States
rights.
Finally, let me note the wide support for this proposal. The
Governors of Mississippi and Louisiana support the proposal. The
American Hotel Lodging Association supports it. The National Restaurant
Association supports it. The Association of National Advertisers
supports it. The ``America's Most Wanted'' TV show endorses the
proposal because billboards have been helpful in catching criminals. A
variety of America's best known brandnames support the proposal, as
well--Accor, Best Western, Bob Evans, Cracker Barrel, Dairy Queen, Ford
Motor Company, Wendy's, and White Castle.
Ms. SNOWE. Mr. President, I rise today to discuss the way forward for
a recapitalization effort critical to our national security and the
safety of America's seafarers. I speak of the effort to modernize the
fleet of the U.S. Coast Guard known as the Integrated Deepwater
Program. There is no question that the Coast Guard desperately requires
new assets with which to carry out its missions, and it is our duty to
ensure that they receive those tools at the best value to the American
taxpayer.
For over two centuries, the Coast Guard has protected our shores, and
the service has come a long way from its beginnings under the auspices
of the U.S. Revenue Cutter Service and the U.S. Lifesaving Service.
Following the events of September 11, 2001, the Coast Guard was
transferred from the Department of Transportation to the Department of
Homeland Security, a change that brought with it an increase in
missions. Today, its roles include search-and-rescue missions and
marine safety enforcement; securing our Nation's ports, waterways, and
coasts; carrying out drug and illegal immigrant interdiction
operations; protecting our marine environment; and ensuring safety and
ease of navigation.
President Bush has called the Coast Guard ``the world's premiere
lifesaving service,'' and given the new tasks assigned to the service
under the Department of Homeland Security, that label now extends far
beyond rescuing mariners in duress or stranded hurricane victims. The
Coast Guard is also our first line of defense against waterborne
terrorist attacks, from suicide bombers such as those who attacked the
USS Cole in Yemen, to potential weapons of mass destruction that could
be brought to our ports on board container ships.
However, the assets we have provided the world's premiere lifesaving
service to carry out their critical missions are anything but the
world's premiere equipment. The valiant men and women who protect our
shores serve aboard vessels that collectively comprise the third oldest
naval fleet in the
[[Page S4092]]
world. These are the same individuals who rescued over thirty thousand
people from the rooftops of the gulf coast after Hurricane Katrina, and
who, in a single action just last week, prevented over 4,200 pounds of
cocaine from reaching America's streets, and schoolyards--the biggest
single drug bust ever recorded. Our service men and women deserve
better, and the American people deserve better.
Which is why the Coast Guard has chosen to modernize its fleet using
a program of unprecedented scope. This recapitalization effort, called
Deepwater, is a single acquisition program designed to completely
overhaul the Coast Guard's entire fleet of ships and aircraft, as well
as its communications system and interoperability components. In
effect, rather than attempting to manage each asset individually, we
chose to manage the new system of assets as a whole, allowing the Coast
Guard and the taxpayer to reap the benefits of economies of scale and
lack of duplicative effort. When the call for proposals was announced,
the group Citizens Against Government Waste called Deepwater ``an
innovative answer to the federal acquisition process' systematic
waste.''
In June of 2002, the Coast Guard awarded a contract to a joint
venture comprised of executives from Lockheed Martin and Northup
Grumman and representatives from the Coast Guard itself. This entity is
called Integrated Cost Guard Systems, or ICGS. And now, not 5 years
later, we have arrived at a crossroads with the Deepwater program that
has has found itself in rough seas. High-profile failures of
acquisitions, such as the 123-foot patrol boats, and questions about
the suitability of the new fleet's flagship, the national security
cutter, have led Congress to re-examine the acquisition process. An
innovative design for one ship, the fast response cutter, has proven to
be a failure, and the Coast Guard, to its credit, has removed that ship
from ICGS's control, will soon put forth a request for design
proposals, and plans to manage that acquisition independently.
Many of these problems stem from the manner in which the Coast Guard
structured its Deepwater contract. Too much control was given to ICGS
in the contract's first term, including the authority to override Coast
Guard engineering decisions, and the ability to ``self-certify'' its
own designs and work as meeting the Coast Guard's requirements. To make
matters worse, these contracts were structured in such a way that if
the assets in development failed to meet the required standards, the
contractor would be paid an additional fee to fix the very problem it
had created in the first place. I am convinced that it is this
contract--and not the concept of a system of systems approach to major
acquisitions--that has brought us to where we are today with the
Deepwater program.
Now the Coast Guard is in negotiations with ICGS for extension of the
contract, and there is no question that oversight of the program must
change. Several legislative solutions have been proposed, including
provisions in both S. 965 and H.R. 1571. While I am pleased to know
that the appropriators in both Houses of Congress recognize the
importance of Deepwater to the Coast Guard and to the Nation, I
strongly disagree with the way in which they have chosen to handle its
revision.
Ultimately, oversight of Deepwater falls not to the appropriators,
but to the service's authorizing committee the Committee on Commerce,
Science, and Transportation's Subcommittee on Oceans, Atmosphere,
Fisheries, and the Coast Guard, on which I serve as the ranking member.
The Chair of that Subcommittee, Senator Cantwell, and I have worked
together on innumerable Coast Guard issues for years, and we have a
detailed understanding of the intricate issues involved both in
management of the Coast Guard as a whole and this program in
particular. The language in neither the House nor the Senate
Appropriations bill provides the best way forward for Deepwater or the
Coast Guard. If passed, either version would lead to delays in
production and affiliated increases both in the final delivery cost of
the assets, and in the size of any patrol gaps the Coast Guard may
experience. In simple terms, the appropriators' language will cost the
taxpayers money and weaken the security of our maritime domain.
Senator Cantwell and I have offered an alternative. Last week, we
introduced the Integrated Deepwater Program Reform Act, S. 924. This
bill places restrictions on the structure of any agreements between the
Coast Guard and its contractors; mandates full and open competition for
all Deepwater assets not yet under contract; requires the Coast Guard
to conduct an analysis of alternatives to ensure that its Deepwater
plan remains the best way to recapitalize the service at the lowest
possible cost; and increases reporting requirements to Congress so we
can be kept abreast of the program's progress as well as any stumbling
blocks that may arise. But most importantly, while this analysis is
ongoing, our bill will allow work to continue on assets that have been
proven capable of meeting the demands of the Coast Guard's mission
portfolio, thereby avoiding costly delays and dangerous patrol gaps.
Despite the mistakes of Deepwater's past, I believe we must move
forward with this critical modernization of The Coast Guard's fleet.
The simple fact is this: The Coast Guard needs new vessels, and a
program run as a system of systems, rather than on an asset-by-asset
basis will lead to a more efficient and more cost-effective
recapitalization.
I respectfully ask that the members of the Appropriations Committees
in both the House and the Senate remove the clauses in their bills that
contain authorization language for the Deepwater program and allow the
authorizing committee to do its job through passage of S. 924. We have
the best interests of the American people at heart, and we have the
necessary expertise to ensure that the Coast Guard and our maritime
security do not suffer unintended consequences of even the best-
intentioned efforts.
Mr. FEINGOLD. Mr. President, I am pleased to vote in favor of the
fiscal year 2007 supplemental because it contains binding language that
effectively ends the current misguided military mission in Iraq and
requires the President to begin withdrawing U.S. troops from Iraq.
While this action is long overdue, it is a big step in the right
direction and it brings us closer to ending our involvement in this
disastrous war.
I am also pleased that the supplemental includes necessary funding to
address conflicts throughout the world, especially in Sudan, Somalia,
and the Democratic Republic of Congo, to assist Iraqi refugees and
internally displaced persons fleeing their homes, and to help pay for
U.S. arrears to the U.N.
The supplemental also contains a 1-month extension of the Milk Income
Loss Contract, MILC, program, which fixes a quirk that could have put
family dairy farmers on unequal footing during the upcoming farm bill
debate. I was glad this provision was included in the supplemental and
will work with my colleagues to retain it during conference.
I am extremely disappointed at the removal of a provision in the
supplemental spending bill that would have fixed a glaring problem in
immigration law that effectively labeled the Hmong as terrorists. We
will forever be indebted to the Hmong who fought alongside and
supported the United States during the Vietnam war. I will continue
working to make sure that Hmong and other legitimate refugees who are
not threats to our national security do not face lengthy and
unnecessary delays as the Federal agencies involved determine whether
they are eligible for a waiver that would permit them to resettle in
the United States or adjust their immigration status.
I remain concerned at the continued practice of funding the war in
Iraq through emergency spending bills. We should not be using such
bills to bypass the regular appropriations process. That is why I
supported efforts to remove certain spending provisions that do not
appear to address true emergencies, including an amendment offered by
Senator Coburn to remove funding for next year's political conventions.
The PRESIDING OFFICER. The question is on the engrossment of the
amendments and third reading of the bill.
The amendments were ordered to be engrossed, and the bill to be read
a third time.
The bill was read the third time.
Mrs. MURRAY. I ask for the yeas and nays.
[[Page S4093]]
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The bill having been read the third time, the question is, Shall the
bill pass?
The clerk will call the roll.
The assistant legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from South Dakota (Mr.
Johnson) is necessarily absent.
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 51, nays 47, as follows:
[Rollcall Vote No. 126 Leg.]
YEAS--51
Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Brown
Byrd
Cantwell
Cardin
Carper
Casey
Clinton
Conrad
Dodd
Dorgan
Durbin
Feingold
Feinstein
Hagel
Harkin
Inouye
Kennedy
Kerry
Klobuchar
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lincoln
McCaskill
Menendez
Mikulski
Murray
Nelson (FL)
Nelson (NE)
Obama
Pryor
Reed
Reid
Rockefeller
Salazar
Sanders
Schumer
Smith
Stabenow
Tester
Webb
Whitehouse
Wyden
NAYS--47
Alexander
Allard
Bennett
Bond
Brownback
Bunning
Burr
Chambliss
Coburn
Cochran
Coleman
Collins
Corker
Cornyn
Craig
Crapo
DeMint
Dole
Domenici
Ensign
Graham
Grassley
Gregg
Hatch
Hutchison
Inhofe
Isakson
Kyl
Lieberman
Lott
Lugar
Martinez
McCain
McConnell
Murkowski
Roberts
Sessions
Shelby
Snowe
Specter
Stevens
Sununu
Thomas
Thune
Vitter
Voinovich
Warner
NOT VOTING--2
Enzi
Johnson
The bill (H.R. 1591), as amended, was passed, as follows:
H.R. 1591
Resolved, That the bill from the House of Representatives
(H.R. 1591) entitled ``An Act making emergency supplemental
appropriations for the fiscal year ending September 30, 2007,
and for other purposes.'', do pass with the following
amendment:
Strike out all after the enacting clause and insert:
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2007, and for other purposes, namely:
TITLE I
GLOBAL WAR ON TERROR SUPPLEMENTAL APPROPRIATIONS
CHAPTER 1
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
Public Law 480 Title II Grants
For an additional amount for ``Public Law 480 Title II
Grants'', during the current fiscal year, not otherwise
recoverable, and unrecovered prior years' costs, including
interest thereon, under the Agricultural Trade Development
and Assistance Act of 1954, for commodities supplied in
connection with dispositions abroad under title II of said
Act, $475,000,000, to remain available until expended.
GENERAL PROVISION--THIS CHAPTER
Sec. 1101. There is hereby appropriated $82,000,000 to
reimburse the Commodity Credit Corporation for the release of
eligible commodities under section 302(f)(2)(A) of the Bill
Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1): Provided,
That any such funds made available to reimburse the Commodity
Credit Corporation shall only be used to replenish the Bill
Emerson Humanitarian Trust.
CHAPTER 2
DEPARTMENT OF JUSTICE
General Administration
OFFICE OF THE INSPECTOR GENERAL
For an additional amount for ``Office of the Inspector
General'', $500,000, to remain available until September 30,
2008.
Legal Activities
Salaries and Expenses, General Legal Activities
For an additional amount for ``Salaries and Expenses,
General Legal Activities'', $4,093,000, to remain available
until September 30, 2008.
salaries and expenses, united states attorneys
For an additional amount for ``Salaries and Expenses,
United States Attorneys'', $12,500,000, to remain available
until September 30, 2008.
United States Marshals Service
salaries and expenses, united states marshals service
For an additional amount for ``Salaries and Expenses,
United States Marshals Service'', $32,500,000, to remain
available until September 30, 2008: Provided, That of the
amounts made available in this Act for ``Educational and
Cultural Exchange Programs'', $15,000,000 is rescinded.
National Security Division
Salaries and Expenses
For an additional amount for ``Salaries and Expenses,''
$1,736,000, to remain available until September 30, 2008.
Federal Bureau of Investigation
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$348,260,000, of which $338,260,000 is to remain available
until September 30, 2008 and $10,000,000 is to remain
available until expended to implement corrective actions in
response to the findings and recommendations in the
Department of Justice Office of Inspector General report
entitled, ``A Review of the Federal Bureau of Investigation's
Use of National Security Letters''.
Drug Enforcement Administration
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$25,100,000, to remain available until September 30, 2008.
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$4,000,000, to remain available until September 30, 2008.
Federal Prison System
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$17,000,000, to remain available until September 30, 2008.
CHAPTER 3
DEPARTMENT OF DEFENSE--MILITARY
MILITARY PERSONNEL
Military Personnel, Army
For an additional amount for ``Military Personnel, Army'',
$8,870,270,000.
Military Personnel, Navy
For an additional amount for ``Military Personnel, Navy'',
$1,100,410,000.
Military Personnel, Marine Corps
For an additional amount for ``Military Personnel, Marine
Corps'', $1,495,827,000.
Military Personnel, Air Force
For an additional amount for ``Military Personnel, Air
Force'', $1,218,587,000.
Reserve Personnel, Army
For an additional amount for ``Reserve Personnel, Army'',
$147,244,000.
Reserve Personnel, Navy
For an additional amount for ``Reserve Personnel, Navy'',
$77,523,000.
Reserve Personnel, Air Force
For an additional amount for ``Reserve Personnel, Air
Force'', $9,073,000.
National Guard Personnel, Army
For an additional amount for ``National Guard Personnel,
Army'', $474,978,000.
National Guard Personnel, Air Force
For an additional amount for ``National Guard Personnel,
Air Force'', $41,533,000.
OPERATION AND MAINTENANCE
Operation and Maintenance, Army
For an additional amount for ``Operation and Maintenance,
Army'', $20,373,379,000.
Operation and Maintenance, Navy
(including transfer of funds)
For an additional amount for ``Operation and Maintenance,
Navy'', $4,865,003,000, of which $120,293,000 shall be
transferred to Coast Guard, ``Operating Expenses'', for
reimbursement for activities in support of activities
requested by the Navy.
Operation and Maintenance, Marine Corps
For an additional amount for ``Operation and Maintenance,
Marine Corps'', $1,101,594,000.
Operation and Maintenance, Air Force
For an additional amount for ``Operation and Maintenance,
Air Force'', $6,685,881,000.
Operation and Maintenance, Defense-Wide
For an additional amount for ``Operation and Maintenance,
Defense-Wide'', $2,790,669,000, of which--
(1) not to exceed $25,000,000 may be used for the Combatant
Commander Initiative Fund, to be used in support of Operation
Iraqi Freedom and Operation Enduring Freedom; and
(2) not to exceed $200,000,000, to remain available until
expended, may be used for payments to reimburse Pakistan,
Jordan, and other key cooperating nations, for logistical,
military, and other support provided to United States
military operations, notwithstanding any other provision of
law: Provided, That such payments may be made in such amounts
as the Secretary of Defense, with the concurrence of the
Secretary of State, and in consultation with the Director of
the Office of Management and Budget, may determine, in his
discretion, based on documentation determined by the
Secretary of Defense to adequately account for the support
provided, and such determination is final and conclusive upon
the accounting officers of the United States, and 15 days
following notification to the appropriate congressional
committees: Provided further, That the Secretary of Defense
shall provide quarterly reports to the congressional defense
committees on the use of funds provided in this paragraph.
Operation and Maintenance, Army Reserve
For an additional amount for ``Operation and Maintenance,
Army Reserve'', $74,049,000.
Operation and Maintenance, Navy Reserve
For an additional amount for ``Operation and Maintenance,
Navy Reserve'', $111,066,000.
Operation and Maintenance, Marine Corps Reserve
For an additional amount for ``Operation and Maintenance,
Marine Corps Reserve'', $13,591,000.
[[Page S4094]]
Operation and Maintenance, Air Force Reserve
For an additional amount for ``Operation and Maintenance,
Air Force Reserve'', $10,160,000.
Operation and Maintenance, Army National Guard
For an additional amount for ``Operation and Maintenance,
Army National Guard'', $83,569,000.
Operation and Maintenance, Air National Guard
For an additional amount for ``Operation and Maintenance,
Air National Guard'', $38,429,000.
Afghanistan Security Forces Fund
For an additional amount for ``Afghanistan Security Forces
Fund'', $5,906,400,000, to remain available until September
30, 2008.
Iraq Security Forces Fund
For an additional amount for ``Iraq Security Forces Fund'',
$3,842,300,000, to remain available until September 30, 2008.
Iraq Freedom Fund
(including transfer of funds)
For an additional amount for ``Iraq Freedom Fund'',
$455,600,000, to remain available for transfer until
September 30, 2008.
Joint Improvised Explosive Device Defeat Fund
For an additional amount for ``Joint Improvised Explosive
Device Defeat Fund'', $2,432,800,000, to remain available
until September 30, 2009.
PROCUREMENT
Aircraft Procurement, Army
For an additional amount for ``Aircraft Procurement,
Army'', $619,750,000, to remain available until September 30,
2009.
Missile Procurement, Army
For an additional amount for ``Missile Procurement, Army'',
$111,473,000, to remain available until September 30, 2009.
Procurement of Weapons and Tracked Combat Vehicles, Army
For an additional amount for ``Procurement of Weapons and
Tracked Combat Vehicles, Army'', $3,400,315,000, to remain
available until September 30, 2009.
Procurement of Ammunition, Army
For an additional amount for ``Procurement of Ammunition,
Army'', $681,500,000, to remain available until September 30,
2009.
Other Procurement, Army
For an additional amount for ``Other Procurement, Army'',
$10,589,272,000, to remain available until September 30,
2009.
Aircraft Procurement, Navy
For an additional amount for ``Aircraft Procurement,
Navy'', $963,903,000, to remain available until September 30,
2009.
Weapons Procurement, Navy
For an additional amount for ``Weapons Procurement, Navy'',
$163,813,000, to remain available until September 30, 2009.
Procurement of Ammunition, Navy and Marine Corps
For an additional amount for ``Procurement of Ammunition,
Navy and Marine Corps'', $159,833,000, to remain available
until September 30, 2009.
Other Procurement, Navy
For an additional amount for ``Other Procurement, Navy'',
$722,506,000, to remain available until September 30, 2009.
Procurement, Marine Corps
For an additional amount for ``Procurement, Marine Corps'',
$1,703,389,000, to remain available until September 30, 2009.
Aircraft Procurement, Air Force
For an additional amount for ``Aircraft Procurement, Air
Force'', $1,431,756,000, to remain available until September
30, 2009.
Missile Procurement, Air Force
For an additional amount for ``Missile Procurement, Air
Force'', $78,900,000, to remain available until September 30,
2009.
Procurement of Ammunition, Air Force
For an additional amount for ``Procurement of Ammunition,
Air Force'', $6,000,000, to remain available until September
30, 2009.
Other Procurement, Air Force
For an additional amount for ``Other Procurement, Air
Force'', $1,972,131,000, to remain available until September
30, 2009.
Procurement, Defense-Wide
For an additional amount for ``Procurement, Defense-Wide'',
$903,092,000, to remain available until September 30, 2009.
National Guard and Reserve Equipment
For an additional amount for ``National Guard and Reserve
Equipment'', $1,000,000,000, to remain available until
September 30, 2009.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
Research, Development, Test and Evaluation, Army
For an additional amount for ``Research, Development, Test
and Evaluation, Army'', $125,576,000, to remain available
until September 30, 2008.
Research, Development, Test and Evaluation, Navy
For an additional amount for ``Research, Development, Test
and Evaluation, Navy'', $308,212,000, to remain available
until September 30, 2008.
Research, Development, Test and Evaluation, Air Force
For an additional amount for ``Research, Development, Test
and Evaluation, Air Force'', $233,869,000, to remain
available until September 30, 2008.
Research, Development, Test and Evaluation, Defense-Wide
For an additional amount for ``Research, Development, Test
and Evaluation, Defense-Wide'', $522,804,000, to remain
available until September 30, 2008.
REVOLVING AND MANAGEMENT FUNDS
National Defense Sealift Fund
For an additional amount for ``National Defense Sealift
Fund'', $5,000,000.
Defense Working Capital Funds
For an additional amount for ``Defense Working Capital
Funds'', $1,315,526,000.
OTHER DEPARTMENT OF DEFENSE PROGRAMS
Defense Health Program
For an additional amount for ``Defense Health Program'',
$2,466,847,000; of which $2,277,147,000 shall be for
operation and maintenance; of which $118,000,000, to remain
available for obligation until September 30, 2009, shall be
for Procurement; and of which $71,700,000, to remain
available for obligation until September 30, 2008, shall be
for Research, development, test and evaluation.
Drug Interdiction and Counter-Drug Activities, Defense
(including transfer of funds)
For an additional amount for ``Drug Interdiction and
Counter-Drug Activities, Defense'', $254,665,000, to remain
available until expended: Provided, That these funds may be
used only for such activities related to Afghanistan and
Central Asia: Provided further, That the Secretary of Defense
may transfer such funds only to appropriations for military
personnel; operation and maintenance; procurement; and
research, development, test and evaluation: Provided further,
That the funds transferred shall be merged with and be
available for the same purposes and for the same time period
as the appropriation to which transferred: Provided further,
That the transfer authority provided in this paragraph is in
addition to any other transfer authority available to the
Department of Defense: Provided further, That upon a
determination that all or part of the funds transferred from
this appropriation are not necessary for the purposes
provided herein, such amounts may be transferred back to this
appropriation.
RELATED AGENCY
Intelligence Community Management Account
For an additional amount for ``Intelligence Community
Management Account'', $71,726,000.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 1301. Appropriations provided in this chapter are
available for obligation until September 30, 2007, unless
otherwise provided in this chapter.
(transfer of funds)
Sec. 1302. Upon his determination that such action is
necessary in the national interest, the Secretary of Defense
may transfer between appropriations up to $3,500,000,000 of
the funds made available to the Department of Defense in this
title: Provided, That the Secretary shall notify the Congress
promptly of each transfer made pursuant to the authority in
this section: Provided further, That the authority provided
in this section is in addition to any other transfer
authority available to the Department of Defense and is
subject to the same terms and conditions as the authority
provided in section 8005 of the Department of Defense
Appropriations Act, 2007 (Public Law 109-289; 120 Stat.
1257), except for the fourth proviso: Provided further, That
funds previously transferred to the ``Joint Improvised
Explosive Device Defeat Fund'' and the ``Iraq Security Forces
Fund'' under the authority of section 8005 of Public Law 109-
289 and transferred back to their source appropriations
accounts shall not be taken into account for purposes of the
limitation on the amount of funds that may be transferred
under section 8005.
Sec. 1303. Funds appropriated in this chapter, or made
available by the transfer of funds in or pursuant to this
chapter, for intelligence activities are deemed to be
specifically authorized by the Congress for purposes of
section 504(a)(1) of the National Security Act of 1947 (50
U.S.C. 414(a)(1)).
Sec. 1304. None of the funds provided in this chapter may
be used to finance programs or activities denied by Congress
in fiscal years 2006 or 2007 appropriations to the Department
of Defense or to initiate a procurement or research,
development, test and evaluation new start program without
prior written notification to the congressional defense
committees.
Sec. 1305. During fiscal year 2007, the Secretary of
Defense may transfer not to exceed $6,300,000 of the amounts
in or credited to the Defense Cooperation Account, pursuant
to 10 U.S.C. 2608, to such appropriations or funds of the
Department of Defense as he shall determine for use
consistent with the purposes for which such funds were
contributed and accepted: Provided, That such amounts shall
be available for the same time period as the appropriation to
which transferred: Provided further, That the Secretary shall
report to the Congress all transfers made pursuant to this
authority.
Sec. 1306. (a) Authority To Provide Support.--Of the amount
appropriated by this title under the heading, ``Drug
Interdiction and Counter-Drug Activities, Defense'', not to
exceed $60,000,000 may be used for support for counter-drug
activities of the Governments of Afghanistan, Kazakhstan, and
Pakistan: Provided, That such support shall be in addition to
support provided for the counter-drug activities of such
Governments under any other provision of the law.
(b) Types of Support.--
(1) Except as specified in subsection (b)(2) of this
section, the support that may be provided
[[Page S4095]]
under the authority in this section shall be limited to the
types of support specified in section 1033(c)(1) of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105-85, as amended by Public Laws 106-398, 108-
136, and 109-364) and conditions on the provision of support
as contained in section 1033 shall apply for fiscal year
2007.
(2) The Secretary of Defense may transfer vehicles,
aircraft, and detection, interception, monitoring and testing
equipment to said Governments for counter-drug activities.
Sec. 1307. (a) From funds made available for operations and
maintenance in this title to the Department of Defense, not
to exceed $456,400,000 may be used, notwithstanding any other
provision of law, to fund the Commander's Emergency Response
Program, for the purpose of enabling military commanders in
Iraq and Afghanistan to respond to urgent humanitarian relief
and reconstruction requirements within their areas of
responsibility by carrying out programs that will immediately
assist the Iraqi and Afghan people.
(b) Quarterly Reports.--Not later than 15 days after the
end of each fiscal year quarter, the Secretary of Defense
shall submit to the congressional defense committees a report
regarding the source of funds and the allocation and use of
funds during that quarter that were made available pursuant
to the authority provided in this section or under any other
provision of law for the purposes of the programs under
subsection (a).
Sec. 1308. During fiscal year 2007, supervision and
administration costs associated with projects carried out
with funds appropriated to ``Afghanistan Security Forces
Fund'' or ``Iraq Security Forces Fund'' in this chapter may
be obligated at the time a construction contract is awarded:
Provided, That for the purpose of this section, supervision
and administration costs include all in-house Government
costs.
Sec. 1309. Section 1005(c)(2) of the National Defense
Authorization Act, Fiscal Year 2007 (Public Law 109-364) is
amended by striking ``$310,277,000'' and inserting
``$376,446,000''.
Sec. 1310. None of the funds appropriated or otherwise made
available by this or any other Act shall be obligated or
expended by the United States Government for a purpose as
follows:
(1) To establish any military installation or base for the
purpose of providing for the permanent stationing of United
States Armed Forces in Iraq.
(2) To exercise United States control over any oil resource
of Iraq.
Sec. 1311. None of the funds made available in this Act may
be used in contravention of the following laws enacted or
regulations promulgated to implement the United Nations
Convention Against Torture and Other Cruel, Inhuman or
Degrading Treatment or Punishment (done at New York on
December 10, 1984):
(1) Section 2340A of title 18, United States Code;
(2) Section 2242 of the Foreign Affairs Reform and
Restructuring Act of 1998 (division G of Public Law 105-277;
112 Stat. 2681-822; 8 U.S.C. 1231 note) and regulations
prescribed thereto, including regulations under part 208 of
title 8, Code of Federal Regulations, and part 95 of title
22, Code of Federal Regulations; and
(3) Sections 1002 and 1003 of the Department of Defense,
Emergency Supplemental Appropriations to Address Hurricanes
in the Gulf of Mexico, and Pandemic Influenza Act, 2006
(Public Law 109-148).
Sec. 1312. Section 9007 of Public Law 109-289 is amended by
striking ``20'' and inserting ``287''.
Sec. 1313. Inspection of Military Medical Treatment
Facilities, Military Quarters Housing Medical Hold Personnel,
and Military Quarters Housing Medical Holdover Personnel. (a)
Periodic Inspection Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of Defense shall inspect each facility of the
Department of Defense as follows:
(A) Each military medical treatment facility.
(B) Each military quarters housing medical hold personnel.
(C) Each military quarters housing medical holdover
personnel.
(2) Purpose.--The purpose of an inspection under this
subsection is to ensure that the facility or quarters
concerned meets acceptable standards for the maintenance and
operation of medical facilities, quarters housing medical
hold personnel, or quarters housing medical holdover
personnel, as applicable.
(b) Acceptable Standards.--For purposes of this section,
acceptable standards for the operation and maintenance of
military medical treatment facilities, military quarters
housing medical hold personnel, or military quarters housing
medical holdover personnel are each of the following:
(1) Generally accepted standards for the accreditation of
non-military medical facilities, or for facilities used to
quarter individuals with medical conditions that may require
medical supervision, as applicable, in the United States.
(2) Standards under the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.).
(c) Additional Inspections on Identified Deficiencies.--
(1) In general.--In the event a deficiency is identified
pursuant to subsection (a) at a facility or quarters
described in paragraph (1) of that subsection--
(A) the commander of such facility or quarters, as
applicable, shall submit to the Secretary a detailed plan to
correct the deficiency; and
(B) the Secretary shall reinspect such facility or
quarters, as applicable, not less often than once every 180
days until the deficiency is corrected.
(2) Construction with other inspections.--An inspection of
a facility or quarters under this subsection is in addition
to any inspection of such facility or quarters under
subsection (a).
(d) Reports on Inspections.--A complete copy of the report
on each inspection conducted under subsections (a) and (c)
shall be submitted in unclassified form to the applicable
military medical command and to the congressional defense
committees.
(e) Report on Standards.--In the event no standards for the
maintenance and operation of military medical treatment
facilities, military quarters housing medical hold personnel,
or military quarters housing medical holdover personnel exist
as of the date of the enactment of this Act, or such
standards as do exist do not meet acceptable standards for
the maintenance and operation of such facilities or quarters,
as the case may be, the Secretary shall, not later than 30
days after that date, submit to Congress a report setting
forth the plan of the Secretary to ensure--
(1) the adoption by the Department of standards for the
maintenance and operation of military medical facilities,
military quarters housing medical hold personnel, or military
quarters housing medical holdover personnel, as applicable,
that meet--
(A) acceptable standards for the maintenance and operation
of such facilities or quarters, as the case may be; and
(B) standards under the Americans with Disabilities Act of
1990; and
(2) the comprehensive implementation of the standards
adopted under paragraph (1) at the earliest date practicable.
Sec. 1314. From funds made available for the ``Iraq
Security Forces Fund'' for fiscal year 2007, up to
$155,500,000 may be used, notwithstanding any other provision
of law, to provide assistance, with the concurrence of the
Secretary of State, to the Government of Iraq to support the
disarmament, demobilization, and reintegration of militias
and illegal armed groups.
Sec. 1315. Revision of United States Policy on Iraq. (a)
Findings.--Congress makes the following findings:
(1) Congress and the American people will continue to
support and protect the members of the United States Armed
Forces who are serving or have served bravely and honorably
in Iraq.
(2) The circumstances referred to in the Authorization for
Use of Military Force Against Iraq Resolution of 2002 (Public
Law 107-243) have changed substantially.
(3) United States troops should not be policing a civil
war, and the current conflict in Iraq requires principally a
political solution.
(4) United States policy on Iraq must change to emphasize
the need for a political solution by Iraqi leaders in order
to maximize the chances of success and to more effectively
fight the war on terror.
(b) Prompt Commencement of Phased Redeployment of United
States Forces From Iraq.--
(1) Transition of mission.--The President shall promptly
transition the mission of United States forces in Iraq to the
limited purposes set forth in paragraph (2).
(2) Commencement of phased redeployment from iraq.--The
President shall commence the phased redeployment of United
States forces from Iraq not later than 120 days after the
date of the enactment of this Act, with the goal of
redeploying, by March 31, 2008, all United States combat
forces from Iraq except for a limited number that are
essential for the following purposes:
(A) Protecting United States and coalition personnel and
infrastructure.
(B) Training and equipping Iraqi forces.
(C) Conducting targeted counter-terrorism operations.
(3) Comprehensive strategy.--Paragraph (2) shall be
implemented as part of a comprehensive diplomatic, political,
and economic strategy that includes sustained engagement with
Iraq's neighbors and the international community for the
purpose of working collectively to bring stability to Iraq.
(4) Reports required.--Not later than 60 days after the
date of the enactment of this Act, and every 90 days
thereafter, the President shall submit to Congress a report
on the progress made in transitioning the mission of the
United States forces in Iraq and implementing the phased
redeployment of United States forces from Iraq as required
under this subsection, as well as a classified campaign plan
for Iraq, including strategic and operational benchmarks and
projected redeployment dates of United States forces from
Iraq.
(c) Benchmarks for the Government of Iraq.--
(1) Sense of congress.--It is the sense of Congress that--
(A) achieving success in Iraq is dependent on the
Government of Iraq meeting specific benchmarks, as reflected
in previous commitments made by the Government of Iraq,
including--
(i) deploying trained and ready Iraqi security forces in
Baghdad;
(ii) strengthening the authority of Iraqi commanders to
make tactical and operational decisions without political
intervention;
(iii) disarming militias and ensuring that Iraqi security
forces are accountable only to the central government and
loyal to the constitution of Iraq;
(iv) enacting and implementing legislation to ensure that
the energy resources of Iraq benefit all Iraqi citizens in an
equitable manner;
(v) enacting and implementing legislation that equitably
reforms the de-Ba'athification process in Iraq;
(vi) ensuring a fair process for amending the constitution
of Iraq so as to protect minority rights; and
(vii) enacting and implementing rules to equitably protect
the rights of minority political parties in the Iraqi
Parliament; and
[[Page S4096]]
(B) each benchmark set forth in subparagraph (A) should be
completed expeditiously and pursuant to a schedule
established by the Government of Iraq.
(2) Report.--Not later than 30 days after the date of the
enactment of this Act, and every 60 days thereafter, the
Commander, Multi-National Forces-Iraq and the United States
Ambassador to Iraq shall jointly submit to Congress a report
describing and assessing in detail the current progress being
made by the Government of Iraq in meeting the benchmarks set
forth in paragraph (1)(A).
Sec. 1316. Independent Assessment of Capabilities of the
Iraqi Security Forces. (a) Findings.--Congress makes the
following findings:
(1) The responsibility for Iraq's internal security and
halting sectarian violence must rest primarily with the
Government of Iraq, relying on the Iraqi Security Forces
(ISF).
(2) In quarterly reports to Congress, and in testimony
before a number of congressional committees, the Department
of Defense reported progress towards training and equipping
Iraqi Security Forces; however, the subsequent performance of
the Iraqi Security Forces has been uneven and occasionally
appeared inconsistent with those reports.
(3) On November 15, 2005, President Bush said, ``The plan
[is] that we will train Iraqi troops to be able to take the
fight to the enemy. And as I have consistently said, as the
Iraqis stand up, we will stand down''.
(4) On January 10, 2007, the President announced a new
strategy, which consists of three basic elements: diplomatic,
economic, and military; the central component of the military
element being an augmentation of the present level of the
U.S. military forces with more than 20,000 additional U.S.
military troops to Iraq to ``work alongside Iraqi units and
be embedded in their formations. Our troops will have a well-
defined mission: to help Iraqis clear and secure
neighborhoods, to help them protect the local population, and
to help ensure that the Iraqi forces left behind are capable
of providing the security that Baghdad needs''.
(5) The President said on January 10, 2007, that ``I've
made it clear to the Prime Minister and Iraq's other leaders
that America's commitment is not open-ended'' so as to dispel
the contrary impression that exists.
(6) The latest National Intelligence Estimate (NIE) on
Iraq, entitled ``Prospects for Iraq's Stability: A
Challenging Road Ahead,'' released in January 2007, found:
``If strengthened Iraqi Security Forces (ISF), more loyal to
the government and supported by Coalition forces, are able to
reduce levels of violence and establish more effective
security for Iraq's population, Iraqi leaders could have an
opportunity to begin the process of political compromise
necessary for longer term stability, political progress, and
economic recovery''.
(7) The NIE also stated that ``[d]espite real improvements,
the Iraqi Security Forces (ISF)--particularly the Iraqi
police--will be hard pressed in the next 12-18 months to
execute significantly increased security responsibilities''.
(8) The current and prospective readiness of the ISF is
critical to (A) the long term stability of Iraq, (B) the
force protection of U.S. forces conducting combined
operations with the ISF; and (C) the scale of U.S. forces
deployed to Iraq.
(b) Independent Assessment of Capabilities of Iraqi
Security Forces.--
(1) In general.--Of the amount appropriated or otherwise
made available for the Department of Defense, $750,000 is
provided to commission an independent, private-sector entity,
which operates as a 501(c)(3) with recognized credentials and
expertise in military affairs, to prepare an independent
report assessing the following:
(A) The readiness of the Iraqi Security Forces (ISF) to
assume responsibility for maintaining the territorial
integrity of Iraq, denying international terrorists a safe
haven, and bringing greater security to Iraq's 18 provinces
in the next 12-18 months, and bringing an end to sectarian
violence to achieve national reconciliation.
(B) The training; equipping; command, control and
intelligence capabilities; and logistics capacity of the ISF.
(C) The likelihood that, given the ISF's record of
preparedness to date, following years of training and
equipping by US forces, the continued support of US troops
will contribute to the readiness of the ISF to fulfill the
missions outlined in subparagraph (A).
(2) Report.--Not later than 120 days after passage of this
Act, the designated private sector entity shall provide an
unclassified report, with a classified annex, containing its
findings, to the House and Senate Committees on Armed
Services, Appropriations, Foreign Relations, and
Intelligence.
Sec. 1317. (a)(1) Notwithstanding any other provision of
law, the Secretary of Veterans Affairs (referred to in this
section as the ``Secretary'') may convey to the State of
Texas, without consideration, all right, title, and interest
of the United States in and to the parcel of real property
comprising the location of the Marlin, Texas, Department of
Veterans Affairs Medical Center.
(2) The property conveyed under paragraph (1) shall be used
by the State of Texas for the purposes of a prison.
(b) In carrying out the conveyance under subsection (a),
the Secretary--
(1) shall not be required to comply with, and shall not be
held liable under, any Federal law (including a regulation)
relating to the environment or historic preservation; but
(2) may, at the discretion of the Secretary, conduct
environmental cleanup on the parcel to be conveyed, at a cost
not to exceed $500,000, using amounts made available for
environmental cleanup of sites under the jurisdiction of the
Secretary.
Sec. 1318. Redevelopment of Industrial Sector in Iraq. Of
the amount appropriated or otherwise made available by this
chapter under the heading ``Iraq Freedom Fund'', up to
$100,000,000 may be obligated and expended for purposes of
the Task Force to Improve Business and Stability Operations
in Iraq.
Sec. 1319. Additional Amount for Procurement, Marine Corps,
for Acceleration of Procurement of Additional 2,500 Mine
Resistant Ambush Protected Vehicles for the Armed Forces.--
(a) Additional Amount.--The amount appropriated by this
chapter under the heading ``Procurement, Marine Corps'' is
hereby increased by $1,500,000,000, with the amount of the
increase to be available to the Marine Corps for the
procurement of an additional 2,500 Mine Resistant Ambush
Protected (MRAP) vehicles for the regular and reserve
components of the Armed Forces by not later than December 31,
2007.
(b) Supplement Not Supplant.--The amount available under
subsection (a) for the procurement of vehicles described in
that subsection is in addition to any other amounts available
under this chapter for that purpose.
CHAPTER 4
DEPARTMENT OF ENERGY
ATOMIC ENERGY DEFENSE ACTIVITIES
National Nuclear Security Administration
Defense Nuclear Nonproliferation
For an additional amount for ``Defense Nuclear
Nonproliferation'', $63,000,000.
CHAPTER 5
DEPARTMENT OF HOMELAND SECURITY
United States Customs and Border Protection
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$140,000,000, to remain available until September 30, 2008.
Air and Marine Interdiction, Operations, Maintenance, and Procurement
For an additional amount for ``Air and Marine Interdiction,
Operations, Maintenance, and Procurement'', for air and
marine operations on the Northern Border and the Great Lakes,
including the final Northern Border air wing, $75,000,000, to
remain available until September 30, 2008.
Immigration and Customs Enforcement
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'',
$20,000,000, to remain available until September 30, 2008.
Transportation Security Administration
Aviation Security
For an additional amount for ``Aviation Security'',
$660,000,000; of which $600,000,000 shall be for procurement
and installation of checked baggage explosives detection
systems, to remain available until expended; and $60,000,000
shall be for air cargo security, to remain available until
September 30, 2008.
Federal Air Marshals
For an additional amount for ``Federal Air Marshals'',
$15,000,000, to remain available until September 30, 2008.
Preparedness
management and administration
For an additional amount for ``Office of the Chief Medical
Officer'' for nuclear preparedness and other activities,
$18,000,000, to remain available until September 30, 2008.
Infrastructure Protection and Information Security
For an additional amount for ``Infrastructure Protection
and Information Security'' for chemical site security
activities, $18,000,000, to remain available until September
30, 2008.
Federal Emergency Management Agency
Administrative and Regional Operations
For an additional amount for ``Administrative and Regional
Operations'' for necessary expenses related to title V of the
Homeland Security Act of 2002 (6 U.S.C. 101 et seq. (as
amended by section 611 of the Post-Katrina Emergency
Management Reform Act of 2006 (6 U.S.C. 701 note; Public Law
109-295))), $20,000,000, to remain available until September
30, 2008: Provided, That none of the funds available under
this heading may be obligated until the Committees on
Appropriations of the Senate and the House of Representatives
receive and approve a plan for expenditure.
State and Local Programs
For an additional amount for ``State and Local Programs'',
$850,000,000; of which $190,000,000 shall be for port
security pursuant to section 70107(l) of title 46 United
States Code; $625,000,000 shall be for intercity rail
passenger transportation, freight rail, and transit security
grants; and $35,000,000 shall be for regional grants and
technical assistance to high risk urban areas for
catastrophic event planning and preparedness: Provided, That
none of the funds made available under this heading may be
obligated for such regional grants and technical assistance
until the Committees on Appropriations of the Senate and the
House of Representatives receive and approve a plan for
expenditure: Provided further, That funds for such regional
grants and technical assistance shall remain available until
September 30, 2008.
Emergency Management Performance Grants
For an additional amount for ``Emergency Management
Performance Grants'' for necessary expenses related to the
Nationwide Plan Review, $100,000,000.
United States Citizenship and Immigration Services
For an additional amount for expenses of ``United States
Citizenship and Immigration Services'' to address backlogs of
security checks
[[Page S4097]]
associated with pending applications and petitions,
$30,000,000, to remain available until September 30, 2008:
Provided, That none of the funds made available under this
heading shall be available for obligation until the Secretary
of Homeland Security, in consultation with the United States
Attorney General, submits to the Committees on Appropriations
of the Senate and the House of Representatives a plan to
eliminate the backlog of security checks that establishes
information sharing protocols to ensure United States
Citizenship and Immigration Services has the information it
needs to carry out its mission.
Science and Technology
Research, Development, Acquisition, and Operations
For an additional amount for ``Research, Development,
Acquisition, and Operations'' for air cargo research,
$15,000,000, to remain available until expended.
Domestic Nuclear Detection Office
Research, Development, and Operations
For an additional amount for ``Research, Development, and
Operations'' for non-container, rail, aviation and intermodal
radiation detection activities, $39,000,000, to remain
available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 1501. None of the funds provided in this Act, or
Public Law 109-295, shall be available to carry out section
872 of Public Law 107-296.
Sec. 1502. Section 550 of the Department of Homeland
Security Appropriations Act, 2007 (6 U.S.C. 121 note) is
amended by adding at the end the following:
``(h) This section shall not preclude or deny any right of
any State or political subdivision thereof to adopt or
enforce any regulation, requirement, or standard of
performance with respect to chemical facility security that
is more stringent than a regulation, requirement, or standard
of performance issued under this section, or otherwise impair
any right or jurisdiction of any State with respect to
chemical facilities within that State, unless there is an
actual conflict between this section and the law of that
State.''.
Sec. 1503. Linking of Award Fees Under Department of
Homeland Security Contracts to Successful Acquisition
Outcomes. The Secretary of Homeland Security shall require
that all contracts of the Department of Homeland Security
that provide award fees link such fees to successful
acquisition outcomes (which outcomes shall be specified in
terms of cost, schedule, and performance).
Sec. 1504. Domestic Preparedness Equipment Technical
Assistance Program. (a) Additional Amount for State and Local
Programs.--The amount appropriated or otherwise made
available by this chapter under the heading ``state and local
programs'' is hereby increased by $5,000,000.
(b) Availability for Domestic Preparedness Equipment
Technical Assistance Program.--Of the amount appropriated or
otherwise made available by this chapter under the heading
``state and local programs'', as increased by subsection (a),
$5,000,000 shall be available for the Domestic Preparedness
Equipment Technical Assistance Program (DPETAP).
(c) Offset.--The amount appropriated or otherwise made
available by this chapter under the heading ``United States
Citizenship and Immigration Services'' is hereby reduced by
$5,000,000.
CHAPTER 6
MILITARY CONSTRUCTION
Military Construction, Army
For an additional amount for ``Military Construction,
Army'', $1,261,390,000, to remain available until September
30, 2008: Provided, That such funds may be obligated and
expended to carry out planning and design and military
construction projects not otherwise authorized by law:
Provided further, That of the funds provided under this
heading, $280,300,000 shall not be obligated or expended
until the Secretary of Defense certifies that none of the
funds are to be used for the purpose of providing facilities
for the permanent basing of U.S. military personnel in Iraq.
Military Construction, Navy and Marine Corps
For an additional amount for ``Military Construction, Navy
and Marine Corps'', $347,890,000, to remain available until
September 30, 2008: Provided, That such funds may be
obligated and expended to carry out planning and design and
military construction projects not otherwise authorized by
law.
Military Construction, Air Force
For an additional amount for ``Military Construction, Air
Force'', $34,700,000, to remain available until September 30,
2008: Provided, That such funds may be obligated and expended
to carry out planning and design and military construction
projects not otherwise authorized by law.
CHAPTER 7
DEPARTMENT OF STATE AND RELATED AGENCY
DEPARTMENT OF STATE
Administration of Foreign Affairs
Diplomatic and Consular Programs
For an additional amount for ``Diplomatic and Consular
Programs'', $815,796,000, to remain available until September
30, 2008, of which $70,000,000 for World Wide Security
Upgrades is available until expended: Provided, That of the
funds appropriated under this heading, not more than
$20,000,000 shall be made available for public diplomacy
programs: Provided further, That prior to the obligation of
funds pursuant to the previous proviso, the Secretary of
State shall submit a report to the Committees on
Appropriations describing a comprehensive public diplomacy
strategy, with goals and expected results, for fiscal years
2007 and 2008: Provided further, That within 15 days of
enactment of this Act, the Office of Management and Budget
shall apportion $15,000,000 from amounts appropriated or
otherwise made available by chapter 8 of title II of division
B of Public Law 109-148 under the heading ``Emergencies in
the Diplomatic and Consular Service'' for emergency
evacuations: Provided further, That of the amount made
available under this heading for Iraq, not to exceed
$20,000,000 may be transferred to, and merged with, funds in
the ``Emergencies in the Diplomatic and Consular Service''
appropriations account, to be available only for emergency
evacuations and terrorism rewards.
Office of Inspector General
For an additional amount for ``Office of Inspector
General'', $36,500,000, to remain available until December
31, 2008: Provided, That of the funds appropriated under this
heading, not less than $1,500,000 shall be made available for
activities related to oversight of assistance furnished for
Iraq and Afghanistan with funds appropriated in this Act and
in prior appropriations Acts: Provided further, That
$35,000,000 of these funds shall be transferred to the
Special Inspector General for Iraq Reconstruction for
reconstruction oversight.
Educational and Cultural Exchange Programs
For an additional amount for ``Educational and Cultural
Exchange Programs'', $25,000,000, to remain available until
expended.
International Organizations
Contributions to International Organizations
For an additional amount for ``Contributions to
International Organizations'', $59,000,000, to remain
available until September 30, 2008.
Contributions for International Peacekeeping Activities
For an additional amount for ``Contributions for
International Peacekeeping Activities'', $200,000,000, to
remain available until September 30, 2008.
RELATED AGENCY
Broadcasting Board of Governors
International Broadcasting Operations
For an additional amount for ``International Broadcasting
Operations'' for activities related to broadcasting to the
Middle East, $10,000,000, to remain available until September
30, 2008.
FOREIGN OPERATIONS
BILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
United States Agency for International Development
Child Survival and Health Programs Fund
For an additional amount for ``Child Survival and Health
Programs Fund'', $161,000,000, to remain available until
September 30, 2008: Provided, That notwithstanding any other
provision of law, funds made available under the heading
``Millennium Challenge Corporation'' and ``Global HIV/AIDS
Initiative'' in prior Acts making appropriations for foreign
operations, export financing and related programs may be made
available to combat the avian influenza, subject to the
regular notification procedures of the Committees on
Appropriations.
International Disaster and Famine Assistance
For an additional amount for ``International Disaster and
Famine Assistance'', $187,000,000, to remain available until
expended: Provided, That of the funds appropriated under this
heading, not less than $65,000,000 shall be made available
for assistance for internally displaced persons in Iraq, not
less than $18,000,000 shall be made available for emergency
shelter, fuel and other assistance for internally displaced
persons in Afghanistan, not less than $10,000,000 shall be
made available for assistance for northern Uganda, not less
than $10,000,000 shall be made available for assistance for
eastern Democratic Republic of the Congo, and not less than
$10,000,000 shall be made available for assistance for Chad.
Operating Expenses of the United States Agency for International
Development
For an additional amount for ``Operating Expenses of the
United States Agency for International Development'',
$5,700,000, to remain available until September 30, 2008.
OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT OFFICE OF INSPECTOR GENERAL
For an additional amount for ``Operating Expenses of the
United States Agency for International Development Office of
Inspector General'', $4,000,000, to remain available until
September 30, 2008: Provided, That of the funds appropriated
under this heading, not less than $3,000,000 shall be made
available for activities related to oversight of assistance
furnished for Iraq with funds appropriated in this Act and in
prior appropriations Acts, and not less than $1,000,000 shall
be made available for activities related to oversight of
assistance furnished for Afghanistan with funds appropriated
in this Act and in prior appropriations Acts.
OTHER BILATERAL ECONOMIC ASSISTANCE
Economic Support Fund
For an additional amount for ``Economic Support Fund'',
$2,602,200,000, to remain available until September 30, 2008:
Provided, That of the funds appropriated under this heading
that are available for assistance for Iraq, not less than
$100,000,000 shall be made available to the United States
Agency for International Development for continued support
for its Community Action Program in Iraq, of which not less
than $5,000,000 shall be made available for the fund
established by section 2108 of Public Law 109-13: Provided
further, That of the funds appropriated under this heading
that are available
[[Page S4098]]
for assistance for Afghanistan, not less than $10,000,000
shall be made available to the United States Agency for
International Development for continued support for its
Afghan Civilian Assistance Program: Provided further, That of
the funds appropriated under this heading, not less than
$6,000,000 shall be made available for assistance for
elections, reintegration of ex-combatants, and other
assistance to support the peace process in Nepal: Provided
further, That of the funds appropriated under this heading,
not less than $3,200,000 shall be made available,
notwithstanding any other provision of law, for assistance
for Vietnam for environmental remediation of dioxin storage
sites and to support health programs in communities near
those sites: Provided further, That funds made available
pursuant to the previous proviso should be matched, to the
maximum extent possible, with contributions from other
governments, multilateral organizations, and private sources:
Provided further, That of the funds made available under this
heading, not less than $6,000,000 shall be made available for
typhoon reconstruction assistance for the Philippines:
Provided further, That of the funds made available under this
heading, not less than $110,000,000 shall be made available
for assistance for Pakistan, of which not less than
$5,000,000 shall be made available for political party
development and election monitoring activities: Provided
further, That of the funds appropriated under this heading,
not less than $2,000,000 shall be made available to support
the peace process in northern Uganda: Provided further, That
of the funds made available under the heading ``Economic
Support Fund'' in Public Law 109-234 for Iraq to promote
democracy, rule of law and reconciliation, $2,000,000 should
be made available for the United States Institute of Peace
for programs and activities in Afghanistan to remain
available until September 30, 2008.
DEPARTMENT OF STATE
Assistance for Eastern Europe and the Baltic States
For an additional amount for ``Assistance for Eastern
Europe and the Baltic States'', $214,000,000, to remain
available until September 30, 2008, for assistance for
Kosovo.
Democracy Fund
For an additional amount for ``Democracy Fund'',
$465,000,000, to remain available until September 30, 2008:
Provided, That of the funds appropriated under this heading,
not less than $385,000,000 shall be made available for the
Human Rights and Democracy Fund of the Bureau of Democracy,
Human Rights and Labor, Department of State, for democracy,
human rights, and rule of law programs in Iraq: Provided
further, That prior to the initial obligation of funds made
available under this heading for Iraq for the Political
Participation Fund or the National Institutions Fund, the
Secretary of State shall submit a report to the Committees on
Appropriations describing a comprehensive, long-term
strategy, with goals and expected results, for strengthening
and advancing democracy in Iraq: Provided further, That of
the funds appropriated under this heading, not less than
$5,000,000 shall be made available for media and
reconciliation programs in Somalia.
International Narcotics Control and Law Enforcement
(including rescission of funds)
For an additional amount for ``International Narcotics
Control and Law Enforcement'', $210,000,000, to remain
available until September 30, 2008.
Of the amounts made available for procurement of a maritime
patrol aircraft for the Colombian Navy under this heading in
Public Law 109-234, $13,000,000 are rescinded.
Migration and Refugee Assistance
For an additional amount for ``Migration and Refugee
Assistance'', $143,000,000, to remain available until
September 30, 2008: Provided, That of the funds appropriated
under this heading, not less than $65,000,000 shall be made
available for assistance for Iraqi refugees including not
less than $5,000,000 to rescue Iraqi scholars, and not less
than $18,000,000 shall be made available for assistance for
Afghan refugees.
United States Emergency Refugee and Migration Assistance Fund
For an additional amount for ``United States Emergency
Refugee and Migration Assistance Fund'', $55,000,000, to
remain available until expended.
Nonproliferation, Anti-terrorism, Demining and Related Programs
For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $27,500,000, to
remain available until September 30, 2008.
DEPARTMENT OF THE TREASURY
International Affairs Technical Assistance Program
For an additional amount for ``International Affairs
Technical Assistance'', $2,750,000, to remain available until
September 30, 2008.
MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
Foreign Military Financing Program
For an additional amount for ``Foreign Military Financing
Program'', $220,000,000, to remain available until September
30, 2008, for assistance for Lebanon.
Peacekeeping Operations
(including transfer of funds)
For an additional amount for ``Peacekeeping Operations'',
$323,000,000, to remain available until September 30, 2008,
of which up to $128,000,000 may be transferred, subject to
the regular notification procedures of the Committees on
Appropriations, to ``Contributions to International
Peacekeeping Activities'', to be made available,
notwithstanding any other provision of law, for assessed
costs of United Nations Peacekeeping Missions: Provided, That
of the funds appropriated under this heading, not less than
$45,000,000 shall be made available, notwithstanding section
660 of the Foreign Assistance Act of 1961, for assistance for
Liberia for security sector reform.
GENERAL PROVISIONS--THIS CHAPTER
authorization of funds
Sec. 1701. Funds appropriated by this title may be
obligated and expended notwithstanding section 10 of Public
Law 91-672 (22 U.S.C. 2412), section 15 of the State
Department Basic Authorities Act of 1956 (22 U.S.C. 2680),
section 313 of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and section
504(a)(1) of the National Security Act of 1947 (50 U.S.C.
414(a)(1)).
extension of availability of funds
Sec. 1702. Section 1302(a) of Public Law 109-234 is amended
by striking ``one additional year'' and inserting in lieu
thereof ``two additional years''.
EXTENSION OF OVERSIGHT AUTHORITY
Sec. 1703. Section 3001(o)(1)(B) of the Emergency
Supplemental Appropriations Act for Defense and for the
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of
Public Law 95-452), as amended by section 1054(b) of the John
Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364; 120 Stat. 2397) and section 2 of
the Iraq Reconstruction Accountability Act of 2006 (Public
Law 109-440), is amended by inserting ``or fiscal year 2007''
after ``fiscal year 2006''.
DEBT RESTRUCTURING
Sec. 1704. Amounts appropriated for fiscal year 2007 for
``Bilateral Economic Assistance--Department of the Treasury--
Debt Restructuring'' may be used to assist Liberia in
retiring its debt arrearages to the International Monetary
Fund, the International Bank for Reconstruction and
Development, and the African Development Bank.
JORDAN
(Including Transfer of Funds)
Sec. 1705. Of the funds appropriated by this Act for
assistance for Iraq under the heading ``Economic Support
Fund'' that are available to support Provincial
Reconstruction Team activities, up to $100,000,000 may be
transferred to, and merged with, funds appropriated by this
Act under the headings ``Foreign Military Financing Program''
and ``Nonproliferation, Anti-terrorism, Demining and Related
Programs'' for assistance for Jordan: Provided, That funds
transferred pursuant to this section shall be subject to the
regular notification procedures of the Committees on
Appropriations.
LEBANON
Sec. 1706. Prior to the initial obligation of funds made
available in this Act for assistance for Lebanon under the
headings ``Foreign Military Financing Program'' and
``Nonproliferation, Anti-terrorism, Demining and Related
Programs'', the Secretary of State shall certify to the
Committees on Appropriations that all practicable efforts
have been made to ensure that such assistance is not provided
to or through any individual, or private or government
entity, that advocates, plans, sponsors, engages in, or has
engaged in, terrorist activity: Provided, That this section
shall be effective notwithstanding section 534(a) of Public
Law 109-102, which is made applicable to funds appropriated
for fiscal year 2007 by the Continuing Appropriations
Resolution, 2007, as amended.
HUMAN RIGHTS AND DEMOCRACY FUND
Sec. 1707. The Assistant Secretary of State for Democracy,
Human Rights and Labor shall be responsible for all policy,
funding, and programming decisions regarding funds made
available under this Act and prior Acts making appropriations
for foreign operations, export financing and related programs
for the Human Rights and Democracy Fund of the Bureau of
Democracy, Human Rights and Labor.
INSPECTOR GENERAL OVERSIGHT OF IRAQ AND AFGHANISTAN
Sec. 1708. (a) In General.--Subject to paragraph (2), the
Inspector General of the Department of State and the
Broadcasting Board of Governors (referred to in this section
as the ``Inspector General'') may use personal services
contracts to engage citizens of the United States to
facilitate and support the Office of the Inspector General's
oversight of programs and operations related to Iraq and
Afghanistan. Individuals engaged by contract to perform such
services shall not, by virtue of such contract, be considered
to be employees of the United States Government for purposes
of any law administered by the Office of Personnel
Management. The Secretary of State may determine the
applicability to such individuals of any law administered by
the Secretary concerning the performance of such services by
such individuals.
(b) Conditions.--The authority under paragraph (1) is
subject to the following conditions:
(1) The Inspector General determines that existing
personnel resources are insufficient.
(2) The contract length for a personal services contractor,
including options, may not exceed 1 year, unless the
Inspector General makes a finding that exceptional
circumstances justify an extension of up to 2 additional
years.
(3) Not more than 20 individuals may be employed at any
time as personal services contractors under the program.
(c) Termination of Authority.--The authority to award
personal services contracts under this section shall
terminate on December 31, 2008. A contract entered into prior
to the termination date under this paragraph may remain in
effect until not later than December 31, 2009.
[[Page S4099]]
(d) Other Authorities Not Affected.--The authority under
this section is in addition to any other authority of the
Inspector General to hire personal services contractors.
FUNDING TABLES
Sec. 1709. (a) Funds provided in this Act for the following
accounts shall be made available for programs and countries
in the amounts contained in the respective tables included in
the report accompanying this Act:
``Diplomatic and Consular Programs''.
``Educational and Cultural Exchange Programs''.
``International Disaster and Famine Assistance''.
``Economic Support Fund''.
``Assistance for Eastern Europe and Baltic States''.
``Democracy Fund''.
``Migration and Refugee Assistance''.
``Nonproliferation, Anti-Terrorism, Demining and Related
Programs''.
``Peacekeeping Operations''.
(b) Any proposed increases or decreases to the amounts
contained in the tables in the accompanying report shall be
subject to the regular notification procedures of the
Committees on Appropriations and section 634A of the Foreign
Assistance Act of 1961.
BENCHMARKS FOR CERTAIN RECONSTRUCTION ASSISTANCE FOR IRAQ
Sec. 1710. (a) Benchmarks.--Notwithstanding any other
provision of law, fifty percent of the funds appropriated by
this Act for assistance for Iraq under the headings
``Economic Support Fund'' and ``International Narcotics and
Law Enforcement'' shall be withheld from obligation until the
President certifies to the Committees on Appropriations and
Foreign Relations of the Senate and the Committees on
Appropriations and Foreign Affairs of the House of
Representatives that the Government of Iraq has--
(1) enacted a broadly accepted hydro-carbon law that
equitably shares oil revenues among all Iraqis;
(2) adopted legislation necessary for the conduct of
provincial and local elections, taken steps to implement such
legislation, and set a schedule to conduct provincial and
local elections;
(3) reformed current laws governing the de-Baathification
process to allow for more equitable treatment of individuals
affected by such laws;
(4) amended the Constitution of Iraq consistent with the
principles contained in Article 137 of such constitution; and
(5) allocated and begun expenditure of $10,000,000,000 in
Iraqi revenues for reconstruction projects, including
delivery of essential services, on an equitable basis.
(b) Exemptions.--The requirement to withhold funds from
obligation pursuant to subsection (a) shall not apply with
respect to funds made available under the heading ``Economic
Support Fund'' that are administered by the United States
Agency for International Development for continued support
for the Community Action Program, assistance for civilian
victims of the military operations, and the Community
Stabilization Program in Iraq, or for programs and activities
to promote democracy, governance, human rights, and rule of
law.
(c) Report.--At the time the President certifies to the
Committees on Appropriations and Foreign Relations of the
Senate and the Committees on Appropriations and Foreign
Affairs of the House of Representatives that the Government
of Iraq has met the benchmarks described in subsection (a),
the President shall submit to such Committees a report that
contains a detailed description of the specific actions that
the Government of Iraq has taken to meet each of the
benchmarks referenced in the certification.
SPENDING PLAN AND NOTIFICATION PROCEDURES
Sec. 1711. Not later than 45 days after enactment of this
Act the Secretary of State shall submit to the Committees on
Appropriations a report detailing planned expenditures for
funds appropriated under the headings in this chapter, except
for funds appropriated under the headings ``International
Disaster and Famine Assistance'', ``Office of the United
States Agency for International Development Inspector
General'', and ``Office of the Inspector General'': Provided,
That funds appropriated under the headings in this chapter,
except for funds appropriated under the headings named in
this section, shall be subject to the regular notification
procedures of the Committees on Appropriations.
CIVILIAN RESERVE CORPS
Sec. 1712. Of the funds appropriated by this Act under the
headings ``diplomatic and consular programs'' and ``Economic
Support Fund'' (except for the Community Action Program), up
to $50,000,000 may be made available to support and maintain
a civilian reserve corps. Funds made available under this
section shall be subject to the regular notification
procedures of the Committees on Appropriations.
TITLE II
KATRINA RECOVERY, VETERANS' CARE AND FOR OTHER PURPOSES
CHAPTER 1
GENERAL PROVISION--THIS CHAPTER
emergency forestry conservation reserve program
Sec. 2101. Section 1231(k)(2) of the Food Security Act of
1985 (16 U.S.C. 3831(k)(2)) is amended by striking ``During
calendar year 2006, the'' and inserting ``The''.
CHAPTER 2
DEPARTMENT OF JUSTICE
Office of Justice Programs
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE
For an additional amount for ``State and Local Law
Enforcement Assistance'', for discretionary grants authorized
by subpart 2 of part E, of title I of the Omnibus Crime
Control and Safe Streets Act of 1968, notwithstanding the
provisions of section 511 of said Act, $170,000,000, to
remain available until September 30, 2008: Provided, That of
the amount made available under this heading, $70,000,000
shall be for local law enforcement initiatives in the gulf
coast region related to the aftermath of Hurricanes Katrina
and Rita, of which no less than $55,000,000 shall be for the
State of Louisiana: Provided further, That of the amount made
available under this heading, $100,000,000 shall be for
reimbursing State and local law enforcement entities for
security and related costs, including overtime, associated
with the 2008 Presidential Candidate Nominating Conventions,
of which $50,000,000 shall be for the city of Denver,
Colorado and $50,000,000 shall be for the city of St. Paul,
Minnesota: Provided further, That the Department of Justice
shall report to the Committees on Appropriations of the House
and the Senate on a quarterly basis on the expenditure of the
funds provided in the previous proviso.
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
OPERATIONS, RESEARCH, AND FACILITIES
For an additional amount for ``Operations, Research, and
Facilities'', for necessary expenses related to fisheries
disasters, $165,900,000, to remain available until September
30, 2008: Provided, That of the amount provided under this
heading, the National Marine Fisheries Service shall cause
$60,400,000 to be distributed among eligible recipients of
assistance for the commercial fishery failure designated
under section 312(a) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1861a(a)) and
declared by the Secretary of Commerce on August 10, 2006:
Provided further, That of the amount provided under this
heading, $105,500,000 shall be for necessary expenses related
to the consequences of Hurricanes Katrina and Rita on shrimp
and fishing industries.
PROCUREMENT, ACQUISITION, AND CONSTRUCTION
For an additional amount for ``Procurement, Acquisition and
Construction'', for necessary expenses related to disaster
response and preparedness of the Gulf of Mexico coast,
$6,000,000, to remain available until September 30, 2008.
fisheries disaster mitigation fund
For an additional amount for a ``Fisheries Disaster
Mitigation Fund'', $50,000,000, to remain available until
expended for use in mitigating the effects of commercial
fisheries failures and fishery resource disasters as
determined under the Magnuson Stevens Act (16 U.S.C. 1801 et
seq.) or the Interjurisdictional Fisheries Act (16 U.S.C.
4101 et seq.): Provided, That the Secretary of Commerce shall
obligate funds provided under this heading according to the
Magnuson Stevens Conservation Act, as amended, the
Interjurisdictional Fisheries Act, as amended, or other Acts
as the Secretary determines to be appropriate.
GENERAL PROVISION--THIS CHAPTER
Sec. 2201. Up to $48,000,000 of amounts made available to
the National Aeronautics and Space Administration in Public
Law 109-148 and Public Law 109-234 for emergency hurricane
and other natural disaster-related expenses may be used to
reimburse hurricane-related costs incurred by NASA in fiscal
year 2005.
CHAPTER 3
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
CONSTRUCTION
For an additional amount for ``Construction'' for necessary
expenses related to the consequences of Hurricane Katrina and
other hurricanes of the 2005 season, $150,000,000, to remain
available until expended, which may be used to continue
construction of projects related to interior drainage for the
greater New Orleans metropolitan area.
operation and maintenance
For an additional amount for ``Operation and Maintenance''
to dredge navigation channels related to the consequences of
Hurricane Katrina and other hurricanes of the 2005 season,
$3,000,000, to remain available until expended.
Flood Control and Coastal Emergencies
For an additional amount for ``Flood Control and Coastal
Emergencies'', as authorized by section 5 of the Act of
August 18, 1941 (33 U.S.C. 701n), for necessary expenses
relating to the consequences of Hurricanes Katrina and Rita
and for other purposes, $1,557,700,000, to remain available
until expended: Provided, That $1,300,000,000 of the amount
provided may be used by the Secretary of the Army to carry
out projects and measures to provide the level of protection
necessary to achieve the certification required for the 100-
year level of flood protection in accordance with the
national flood insurance program under the base flood
elevations in existence at the time of construction of the
enhancements for the West Bank and Vicinity and Lake
Ponchartrain and Vicinity, Louisiana, projects, as described
under the heading ``Flood Control and Coastal Emergencies'',
in chapter 3 of Public Law 109-148: Provided further, That
$150,000,000 of the amount provided may be used to support
emergency operations, repairs and other activities in
response to flood, drought and earthquake emergencies as
authorized by law: Provided further, That $107,700,000 of the
amount provided may be used to implement the projects for
hurricane storm damage reduction, flood damage reduction, and
ecosystem restoration within Hancock, Harrison, and Jackson
Counties, Mississippi substantially
[[Page S4100]]
in accordance with the Report of the Chief of Engineers dated
December 31, 2006, and entitled ``Mississippi, Coastal
Improvements Program Interim Report, Hancock, Harrison, and
Jackson Counties, Mississippi'': Provided further, That
projects authorized for implementation under this Chief's
report shall be carried out at full Federal expense, except
that the non-Federal interests shall be responsible for
providing any lands, easements, rights-of-way, disposal
areas, and relocations required for construction of the
project and for all costs associated with operation and
maintenance of the project: Provided further, That any
project using funds appropriated under this heading shall be
initiated only after non-Federal interests have entered into
binding agreements with the Secretary requiring the non-
Federal interests to pay 100 percent of the operation,
maintenance, repair, replacement, and rehabilitation costs of
the project and to hold and save the United States free from
damages due to the construction or operation and maintenance
of the project, except for damages due to the fault or
negligence of the United States or its contractors.
DEPARTMENT OF INTERIOR
Bureau of Reclamation
WATER AND RELATED RESOURCES
For an additional amount for ``Water and Related
Resources'', $18,000,000, to remain available until expended
for drought assistance: Provided, That drought assistance may
be provided under the Reclamation States Drought Emergency
Act or other applicable Reclamation authorities to assist
drought plagued areas of the West.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2301. The Secretary is authorized and directed to
reimburse local governments for expenses they have incurred
in storm-proofing pumping stations, constructing safe houses
for operators, and other interim flood control measures in
and around the New Orleans metropolitan area, provided the
Secretary determines those elements of work and related
expenses to be integral to the overall plan to ensure
operability of the stations during hurricanes, storms and
high water events and the flood control plan for the area.
Sec. 2302. The limitation concerning total project costs in
section 902 of the Water Resources Development Act of 1986,
as amended (33 U.S.C. 2280), shall not apply during fiscal
year 2008 to any water resources project for which funds were
made available during fiscal year 2007.
Sec. 2303. (a) The Secretary of the Army is authorized and
directed to utilize funds remaining available for obligation
from the amounts appropriated in chapter 3 of Public Law 109-
234 under the heading ``Flood Control and Coastal
Emergencies'' for projects in the greater New Orleans
metropolitan area to prosecute these projects in a manner
which promotes the goal of continuing work at an optimal
pace, while maximizing, to the greatest extent practicable,
levels of protection to reduce the risk of storm damage to
people and property.
(b) The expenditure of funds as provided in subsection (a)
may be made without regard to individual amounts or purposes
specified in chapter 3 of Public Law 109-234.
(c) Any reallocation of funds that are necessary to
accomplish the goal established in subsection (a) are
authorized. Reallocation of funds in excess of $250,000,000
or 50 percent, whichever is less, of the individual amounts
specified in chapter 3 of Public Law 109-234 require
notifications of the House and Senate Committees on
Appropriation.
Sec. 2304. The Chief of Engineers shall investigate the
overall technical advantages, disadvantages and operational
effectiveness of operating the new pumping stations at the
mouths of the 17th Street, Orleans Avenue and London Avenue
canals in the New Orleans area directed for construction in
Public Law 109-234 concurrently or in series with existing
pumping stations serving these canals and the advantages,
disadvantages and technical operational effectiveness of
removing the existing pumping stations and configuring the
new pumping stations and associated canals to handle all
needed discharges; and the advantages, disadvantages and
technical operational effectiveness of replacing or improving
the floodwalls and levees adjacent to the three outfall
canals: Provided, That the analysis should be conducted at
Federal expense: Provided further, That the analysis shall be
completed and furnished to the Congress not later than three
months after enactment of this Act.
Sec. 2305. Using funds made available in Chapter 3 under
title II of Public Law 109-234 (120 Stat. 453), under the
heading ``Investigations'', the Secretary of the Army, in
consultation with other agencies and the State of Louisiana
shall accelerate completion as practicable the final report
of the Chief of Engineers recommending a comprehensive plan
to deauthorize deep draft navigation on the Mississippi River
Gulf Outlet: Provided, That the plan shall incorporate and
build upon the Interim Mississippi River Gulf Outlet Deep-
Draft De-Authorization Report submitted to Congress in
December 2006 pursuant to Public Law 109-234.
Sec. 2306. (a) Section 111 of Public Law 108-137 (117 Stat.
1835) is amended by--
(1) adding the following language at the end of subsection
(a):
``Such activities also may include the provision of
financial assistance to facilitate the buy-out of properties
located in areas identified by the State of Oklahoma as areas
that are or will be at risk of damage caused by land
subsidence and other necessary and closely associated
properties otherwise identified by the State of Oklahoma;
however, any buyout of such properties shall not be
considered to be part of a Federally assisted program or
project for purposes of 42 U.S.C. 4601 et. seq., consistent
with section 2301 of Public Law 109-234 (120 Stat. 455-
456).''; and
(2) striking the first sentence of subsection (d) and
inserting the following language in lieu thereof:
``(d) Non-Federal interests shall be responsible for
operating and maintaining any restoration alternatives
constructed or carried out pursuant to this section.''.
CHAPTER 4
SMALL BUSINESS ADMINISTRATION
Disaster Loans Program Account
(including transfer of funds)
For an additional amount for ``Disaster Loans Program
Account'' for administrative expenses to carry out the
disaster loan program, $25,069,000, to remain available until
expended, which may be transferred to and merged with ``Small
Business Administration, Salaries and Expenses''.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2401. Economic Injury Disaster Loans. (a)
Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``covered small business concern'' means a
small business concern--
(A) that is located in any area in Louisiana or Mississippi
for which the President declared a major disaster because of
Hurricane Katrina of 2005 or Hurricane Rita of 2005;
(B) that has not more than 50 full-time employees; and
(C) that--
(i)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005,
because of a reduction in travel or tourism to the area
described in subparagraph (A); and
(II) demonstrates that, during the 1-year period ending on
August 28, 2005, not less than 45 percent of the revenue of
that small business concern resulted from tourism or travel
related sales; or
(ii)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005; and
(II) operates in a parish or county for which the
population on the date of enactment of this Act, as
determined by the Administrator, is not greater than 75
percent of the population of that parish or county before
August 28, 2005, based on the most recent United States
population estimate available before August 28, 2005;
(3) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
(4) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Appropriation.--
(1) In general.--There are appropriated, out of any money
in the Treasury not otherwise appropriated, $25,000,000 to
the Administrator, which, except as provided in paragraph (2)
or (3), shall be used for loans under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) to covered small
business concerns.
(2) Administrative expenses.--Of the amounts made available
under paragraph (1), not more than $8,750,000 may be
transferred to and merged with ``Salaries and Expenses'' to
carry out the disaster loan program of the Small Business
Administration.
(3) Other uses of funds.--The Administrator may use amounts
made available under paragraph (1) for other purposes
authorized for amounts in the ``Disaster Loans Program
Account'' or transfer such amounts to and merge such amounts
with ``Salaries and Expenses'', if--
(A) such amounts are--
(i) not obligated on the later of 5 months after the date
of enactment of this Act and August 29, 2007; or
(ii) necessary to provide assistance in the event of a
major disaster; and
(B) not later than 5 days before any such use or transfer
of amounts, the Administrator provides written notification
of such use or transfer to the Committee on Appropriations of
the Senate and the Committee on Appropriations of the House
of Representatives.
Sec. 2402. Other Programs. (a) HUBZones.--Section 3(p) of
the Small Business Act (15 U.S.C. 632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``or'';
(B) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(F) an area in which the President has declared a major
disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)) as a result of Hurricane Katrina of
August 2005 or Hurricane Rita of September 2005, during the
time period described in paragraph (8).''; and
(2) by adding at the end the following:
``(8) Time period.--The time period for the purposes of
paragraph (1)(F)--
``(A) shall be the 2-year period beginning on the later of
the date of enactment of this paragraph and August 29, 2007;
and
``(B) may, at the discretion of the Administrator, be
extended to be the 3-year period beginning on the later of
the date of enactment of this paragraph and August 29,
2007.''.
(b) Termination of Program.--Section 711(c) of the Small
Business Competitive Demonstration Program Act of 1988 (15
U.S.C. 644 note) is amended by inserting after ``January 1,
1989'' the following: ``, and shall terminate on the date of
enactment of the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act,
2007''.
Sec. 2403. Reservist Programs. (a) Definitions.--In this
section--
[[Page S4101]]
(1) the term ``activated'' means receiving an order placing
a Reservist on active duty;
(2) the term ``active duty'' has the meaning given that
term in section 101 of title 10, United States Code;
(3) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(4) the term ``Reservist'' means a member of a reserve
component of the Armed Forces, as described in section 10101
of title 10, United States Code;
(5) the term ``Service Corps of Retired Executives'' means
the Service Corps of Retired Executives authorized by section
8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
(6) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632);
(7) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648); and
(8) the term ``women's business center'' means a women's
business center described in section 29 of the Small Business
Act (15 U.S.C. 656).
(b) Application Period.--Section 7(b)(3)(C) of the Small
Business Act (15 U.S.C. 636(b)(3)(C)) is amended by striking
``90 days'' and inserting ``1 year''.
(c) Pre-consideration Process.--
(1) Definition.--In this subsection, the term ``eligible
Reservist'' means a Reservist who--
(A) has not been ordered to active duty;
(B) expects to be ordered to active duty during a period of
military conflict; and
(C) can reasonably demonstrate that the small business
concern for which that Reservist is a key employee will
suffer economic injury in the absence of that Reservist.
(2) Establishment.--Not later than 6 months after the date
of enactment of this Act, the Administrator shall establish a
pre-consideration process, under which the Administrator--
(A) may collect all relevant materials necessary for
processing a loan to a small business concern under section
7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3))
before an eligible Reservist employed by that small business
concern is activated; and
(B) shall distribute funds for any loan approved under
subparagraph (A) if that eligible Reservist is activated.
(d) Outreach and Technical Assistance Program.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Veterans Affairs and the Secretary of
Defense, shall develop a comprehensive outreach and technical
assistance program (in this subsection referred to as the
``program'') to--
(A) market the loans available under section 7(b)(3) of the
Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and
family members of Reservists, that are on active duty and
that are not on active duty; and
(B) provide technical assistance to a small business
concern applying for a loan under that section.
(2) Components.--The program shall--
(A) incorporate appropriate websites maintained by the
Administration, the Department of Veterans Affairs, and the
Department of Defense; and
(B) require that information on the program is made
available to small business concerns directly through--
(i) the district offices and resource partners of the
Administration, including small business development centers,
women's business centers, and the Service Corps of Retired
Executives; and
(ii) other Federal agencies, including the Department of
Veterans Affairs and the Department of Defense.
(3) Report.--
(A) In general.--Not later than 6 months after the date of
enactment of this Act, and every 6 months thereafter until
the date that is 30 months after such date of enactment, the
Administrator shall submit to Congress a report on the status
of the program.
(B) Contents.--Each report submitted under subparagraph (A)
shall include--
(i) for the 6-month period ending on the date of that
report--
(I) the number of loans approved under section 7(b)(3) of
the Small Business Act (15 U.S.C. 636(b)(3));
(II) the number of loans disbursed under that section; and
(III) the total amount disbursed under that section; and
(ii) recommendations, if any, to make the program more
effective in serving small business concerns that employ
Reservists.
CHAPTER 5
DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
Disaster Relief
For an additional amount for ``Disaster Relief'' for
necessary expenses under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
$4,310,000,000, to remain available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2501. (a) In General.--Notwithstanding any other
provision of law, including any agreement, the Federal share
of assistance, including direct Federal assistance, provided
for the States of Louisiana, Mississippi, Alabama, and Texas
in connection with Hurricanes Katrina and Rita under sections
403, 406, 407, and 408 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170b, 5172,
5173, and 5174) shall be 100 percent of the eligible costs
under such sections.
(b) Applicability.--
(1) In general.--Subject to paragraph (2), the Federal
share provided by subsection (a) shall apply to disaster
assistance applied for before the date of enactment of this
Act.
(2) Limitation.--In the case of disaster assistance
provided under sections 403, 406, and 407 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, the
Federal share provided by subsection (a) shall be limited to
assistance provided for projects for which applications have
been prepared for the Federal Emergency Management Agency
before the date of enactment of this Act.
Sec. 2502. (a) Section 2(a) of the Community Disaster Loan
Act of 2005 (Public Law 109-88; 119 Stat. 2061) is amended by
striking ``: Provided further, That notwithstanding section
417(c)(1) of the Stafford Act, such loans may not be
canceled''.
(b) Chapter 4 of title II of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 (Public Law 109-234; 120 Stat. 471)
is amended under the heading ``Disaster Assistance Direct
Loan Program Account'' under the heading ``Federal Emergency
Management Agency'' under the heading ``Department of
Homeland Security'', by striking ``Provided further, That
notwithstanding section 417(c)(1) of such Act, such loans may
not be canceled:''.
Sec. 2503. Section 2401 of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 (Public Law 109-234; 120 Stat. 460)
is amended by striking ``12 months'' and inserting ``24
months''.
CHAPTER 6
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
Wildland Fire Management
(Including Transfer of Funds)
For an additional amount for ``Wildland Fire Management'',
$100,000,000, to remain available until expended, for urgent
wildland fire suppression activities: Provided, That such
funds shall only become available if funds previously
provided for wildland fire suppression will be exhausted
imminently and the Secretary of the Interior notifies the
House and Senate Committees on Appropriations in writing of
the need for these additional funds: Provided further, That
such funds are also available for repayment to other
appropriations accounts from which funds were transferred for
wildfire suppression.
United States Fish and Wildlife Service
Resource Management
For an additional amount for ``Resource Management'' for
the detection of highly pathogenic avian influenza in wild
birds, including the investigation of morbidity and mortality
events, targeted surveillance in live wild birds, and
targeted surveillance in hunter-taken birds, $7,398,000, to
remain available until September 30, 2008.
National Park Service
Operation of the National Park System
For an additional amount for ``Operation of the National
Park System'' for the detection of highly pathogenic avian
influenza in wild birds, including the investigation of
morbidity and mortality events, $525,000, to remain available
until September 30, 2008.
Historic Preservation Fund
For an additional amount for the ``Historic Preservation
Fund'' for necessary expenses related to the consequences of
Hurricane Katrina and other hurricanes of the 2005 season,
$15,000,000, to remain available until September 30, 2008:
Provided, That the funds provided under this heading shall be
provided to the State Historic Preservation Officer, after
consultation with the National Park Service, for grants for
disaster relief in areas of Louisiana impacted by Hurricanes
Katrina or Rita: Provided further, That grants shall be for
the preservation, stabilization, rehabilitation, and repair
of historic properties listed in or eligible for the National
Register of Historic Places, for planning and technical
assistance: Provided further, That grants shall only be
available for areas that the President determines to be a
major disaster under section 102(2) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122(2)) due to Hurricanes Katrina or Rita: Provided further,
That individual grants shall not be subject to a non-Federal
matching requirement: Provided further, That no more than 5
percent of funds provided under this heading for disaster
relief grants may be used for administrative expenses.
United States Geological Survey
Surveys, Investigations, and Research
For an additional amount for ``Surveys, Investigations, and
Research'' for the detection of highly pathogenic avian
influenza in wild birds, including the investigation of
morbidity and mortality events, targeted surveillance in live
wild birds, and targeted surveillance in hunter-taken birds,
$5,270,000, to remain available until September 30, 2008.
DEPARTMENT OF AGRICULTURE
Forest Service
National Forest System
For an additional amount for ``National Forest System'' for
the implementation of a nationwide initiative to increase
protection of national forest lands from foreign drug-
trafficking organizations, including funding for additional
law enforcement personnel, training, equipment and
cooperative agreements, $12,000,000, to remain available
until expended.
Wildland Fire Management
(Including Transfer of Funds)
For an additional amount for ``Wildland Fire Management'',
$400,000,000, to remain available until expended, for urgent
wildland fire suppression activities: Provided, That such
funds shall only become available if funds provided
previously for wildland fire suppression will be
[[Page S4102]]
exhausted imminently and the Secretary of Agriculture
notifies the House and Senate Committees on Appropriations in
writing of the need for these additional funds: Provided
further, That such funds are also available for repayment to
other appropriation accounts from which funds were
transferred for wildfire suppression.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2601. Secure Rural Schools and Community Self-
Determination Program. (a) Reauthorization of the Secure
Rural Schools and Community Self-Determination Act of 2000.--
The Secure Rural Schools and Community Self-Determination Act
of 2000 (16 U.S.C. 500 note; Public Law 106-393) is amended
by striking sections 1 through 403 and inserting the
following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that enhance forest
ecosystems; and
``(iii) restore and improve land health and water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure maintenance or
obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem health;
``(iv) watershed restoration and maintenance;
``(v) the restoration, maintenance, and improvement of
wildlife and fish habitat;
``(vi) the control of noxious and exotic weeds; and
``(vii) the reestablishment of native species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (8)(A) for all eligible
counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(A) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 25-
percent payments and safety net payments made to each
eligible State for each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the averages
calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section
101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in paragraph (7));
and
``(B) elects to receive a share of the State payment or the
county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization projects designated
as National Grasslands administered pursuant to the Act of
July 22, 1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and California
Railroad and reconveyed Coos Bay Wagon Road grant land as are
or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may
hereafter be classified as timberlands, and power-site land
valuable for timber, that shall be managed, except as
provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest
production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient
obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (1)(A) for all eligible
counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(B) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 50-
percent payments made to each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the averages
calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et
seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $526,079,656 for fiscal year 2007;
``(B) $520,000,000 for fiscal year 2008; and
``(C) for fiscal year 2009 and each fiscal year thereafter,
the amount that is equal to 90 percent of the full funding
amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each eligible
county; by
``(B) the median per capita personal income of all eligible
counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic
Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee of the
Secretary of Agriculture with respect to the Federal land
described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee of the
Secretary of the Interior with respect to the Federal land
described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section
101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `forest service' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL
LAND.
``(a) State Payment.--For each of fiscal years 2007 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2007
through 2011, the Secretary of the Interior shall calculate
for each eligible county that received a 50-percent payment
during the eligibility period an amount equal to the product
obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State an amount equal to the sum of the amounts
elected under subsection (b) by each county within the State
for--
``(A) if the county is eligible for the 25-percent payment,
the share of the 25-percent payment; or
``(B) the share of the State payment of the eligible
county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent payment,
the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election to Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share of the
State payment, the county payment, a share of the State
payment and the county payment, a share of the 25-percent
payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be
made at the discretion of each affected county by August 1,
2007, and August 1 of each second fiscal year thereafter, in
accordance with paragraph (2), and transmitted to the
Secretary concerned by the Governor of each eligible State.
[[Page S4103]]
``(B) Failure to transmit.--If an election for an affected
county is not transmitted to the Secretary concerned by the
date specified under subparagraph (A), the affected county
shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State
payment and the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a share of
the 25-percent payment or 50-percent payment, as applicable
shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to receive a
share of the State payment or the county payment, the
election shall be effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or miscellaneous
receipts, exclusive of deposits to any relevant trust fund,
special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land
Management or the Forest Service on the applicable Federal
land; and
``(B) to the extent of any shortfall, out of any amounts in
the Treasury of the United States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963;
16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1)
shall be expended as required by the laws referred to in
paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent payment
or 50-percent payment, as applicable.--Except as provided in
paragraph (3)(B), if an eligible county elects to receive its
share of the State payment or the county payment, not less
than 80 percent, but not more than 85 percent, of the funds
shall be expended in the same manner in which the 25-percent
payments or 50-percent payment, as applicable, are required
to be expended.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--
``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or
``(ii) return the portion of the balance not reserved under
clause (i) to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible county
under subparagraph (B)(i) or (C)(i)(I) of paragraph (1) shall
be deposited in a special account in the Treasury of the
United States.
``(B) Availability.--Amounts deposited under subparagraph
(A) shall--
``(i) be available for expenditure by the Secretary
concerned, without further appropriation; and
``(ii) remain available until expended in accordance with
title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall notify the
Secretary concerned of an election by the eligible county
under this subsection not later than September 30 of each
fiscal year.
``(ii) Failure to elect.--Except as provided in
subparagraph (B), if the eligible county fails to make an
election by the date specified in clause (i), the eligible
county shall--
``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.
``(B) Counties with minor distributions.--In the case of
each eligible county to which less than $100,000 is
distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible
county may elect to expend all the funds in the same manner
in which the 25-percent payments or 50-percent payments, as
applicable, are required to be expended.
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as
practicable after the end of that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA,
OREGON, AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2007--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2007; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2007;
``(B) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2008; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2008;
``(C) for fiscal year 2009, 81 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2009; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2009; and
``(D) for fiscal year 2010, 73 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2010; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2007
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible
counties within the covered State, as applicable, from funds
in the Treasury of the United States not otherwise
appropriated.
``(c) Distribution of Adjusted Amount in Oregon and
Washington.--It is the intent of Congress that the method of
distributing the payments under subsection (b) among the
counties in the States of Oregon and Washington for each of
fiscal years 2007 through 2010 be in the same proportion that
the payments were distributed to the eligible counties in
fiscal year 2006.
``(d) Distribution of Payments in California.--The
following payments shall be distributed among the eligible
counties in the State of California in the same proportion
that payments under section 102(a)(2) (as in effect on
September 29, 2006) were distributed to the eligible counties
in fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year
2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the Secretary
concerned under section 205; or
``(B) an advisory committee determined by the Secretary
concerned to meet the requirements of section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of Land
Management for units of the Federal land described in section
3(7)(B) pursuant to section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan prepared by the
Forest Service for units of the National Forest System
pursuant to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974l (16 U.S.C. 1604).
[[Page S4104]]
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely
on projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on
Federal land and on non-Federal land where projects would
benefit the resources on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2007, and each September 30
thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to
the Secretary concerned a description of any projects that
the resource advisory committee proposes the Secretary
undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee
has geographic jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee
established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following
information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or negative
impacts of the project, implementation, and provides for
validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or exceeded desired
ecological conditions; created local employment or training
opportunities, including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use of, or added
value to, any products removed from land consistent with the
purposes of this title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY
CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this
purpose, the Secretary concerned shall conduct environmental
review, consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee does
not agree to the expenditure of funds under paragraph (1),
the project shall be deemed withdrawn from further
consideration by the Secretary concerned pursuant to this
title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of the
project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary concerned to
reject a proposed project shall be at the sole discretion of
the Secretary concerned.
``(B) No administrative appeal or judicial review.--
Notwithstanding any other provision of law, a decision by the
Secretary concerned to reject a proposed project shall not be
subject to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days after
the date on which the Secretary concerned makes the rejection
decision, the Secretary concerned shall notify in writing the
resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative
agreements with States and local governments, private and
nonprofit entities, and landowners and other persons to
assist the Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a contract
authorized by paragraph (1) the Secretary concerned may elect
a source for performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall determine
best value based on such factors as--
``(i) the technical demands and complexity of the work to
be done;
``(ii)(I) the ecological objectives of the project; and
``(II) the sensitivity of the resources being treated;
``(iii) the past experience by the contractor with the type
of work being done, using the type of equipment proposed for
the project, and meeting or exceeding desired ecological
conditions; and
``(iv) the commitment of the contractor to hiring highly
qualified workers and local residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain percentage
of approved projects involving the sale of merchantable
timber using separate contracts for--
``(i) the harvesting or collection of merchantable timber;
and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program, the
Secretary concerned shall ensure that, on a nationwide basis,
not less than the following percentage of all approved
projects involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2007, 25 percent.
``(ii) For fiscal year 2008, 35 percent.
``(iii) For fiscal year 2009, 45 percent.
``(iv) For each of fiscal years 2010 and 2011, 50 percent.
``(C) Inclusion in pilot program.--The decision whether to
use separate contracts to implement a project involving the
sale of merchantable timber shall be made by the Secretary
concerned after the approval of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned may use funds
from any appropriated account available to the Secretary for
the Federal land to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The total amount
obligated under this subparagraph may not exceed $1,000,000
for any fiscal year during which the pilot program is in
effect.
``(E) Review and report.--
``(i) Initial report.--Not later than September 30, 2009,
the Comptroller General shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on Agriculture and
Natural Resources of the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary concerned shall submit
to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees
on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of
the pilot program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as provided in
paragraph (4).
[[Page S4105]]
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the land
management agencies consistent with the purposes of this
title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets the
requirements of this section, an advisory committee
established before the date of enactment of this Act, or an
advisory committee determined by the Secretary concerned to
meet the requirements of this section before the date of
enactment of this Act may be deemed by the Secretary
concerned to be a resource advisory committee for the
purposes of this title.
``(B) Charter.--A charter for a committee described in
subparagraph (A) that was filed on or before September 29,
2006, shall be considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory committees.--The
Secretary of the Interior may deem a resource advisory
committee meeting the requirements of subpart 1784 of part
1780 of title 43, Code of Federal Regulations, as a resource
advisory committee for the purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this
title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A);
and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall appoint
the members of resource advisory committees for a term of 4
years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may reappoint
members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established
meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary
concerned shall make initial appointments to the resource
advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-timber forest
product harvester groups;
``(ii) represent developed outdoor recreation, off highway
vehicle users, or commercial recreation activities;
``(iii) represent--
``(I) energy and mineral development interests; or
``(II) commercial or recreational fishing interests;
``(iv) represent the commercial timber industry; or
``(v) hold Federal grazing or other land use permits, or
represent nonindustrial private forest land owners, within
the area for which the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental organizations;
``(ii) regionally or locally recognized environmental
organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical interests; or
``(v) nationally or regionally recognized wild horse and
burro interest groups, wildlife or hunting organizations, or
watershed associations.
``(C) 5 persons that--
``(i) hold State elected office (or a designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes within or adjacent
to the area for which the committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic
staff assistance from Federal employees under the
jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make
the records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the level of
agency overhead to be assessed against the project.
``(C) For a multiyear project, the estimated cost of the
project for each of the fiscal years in which it will be
carried out.
``(D) The remedies for failure of the Secretary concerned
to comply with the terms of the agreement consistent with
current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise
available to the Secretary for the same purposes as the
project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with
regard to a project to be funded in whole or in part using
project funds, or other funds described in section 203(a)(2),
the Secretary concerned shall transfer to the applicable unit
of National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a single
fiscal year, the total amount specified in the agreement to
be paid using project funds, or other funds described in
section 203(a)(2); or
``(B) in the case of a multiyear project, the amount
specified in the agreement to be paid using project funds, or
other funds described in section 203(a)(2) for the first
fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the
project, have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent fiscal
years of a multiyear project to be funded in whole or in part
using project funds, the unit of National Forest System land
or Bureau of Land Management District concerned shall use the
amount of project funds required to continue the project in
that fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned shall
suspend work on the project if the project funds required by
the agreement in the second and subsequent fiscal years are
not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--
By September 30 of each fiscal year through fiscal year 2011,
a resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number
of project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved
[[Page S4106]]
by the participating county in the preceding fiscal year and
remaining unobligated shall be available for use as part of
the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of
a fiscal year because the Secretary concerned has rejected
one or more proposed projects shall be available for use as
part of the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related
to the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including
any applicable agencies of the participating county, shall
use county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home construction,
and home landscaping that can increase the protection of
people and property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on which the
use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-
day public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned
a certification that the county funds expended in the
applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts
expended and the uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the
Secretary concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be deposited in the Treasury of the
United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the
Interior shall jointly issue regulations to carry out the
purposes of this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
such sums as are necessary to carry out this Act for each of
fiscal years 2007 through 2011.
``(b) Emergency Designation.--Of the amounts authorized to
be appropriated under subsection (a) for fiscal year 2007,
$425,000,000 is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made
available under section 402 and funds made available to a
Secretary concerned under section 206 shall be in addition to
any other annual appropriations for the Forest Service and
the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``forest service'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an amount
equal to the annual average of 25 percent of all amounts
received for the applicable fiscal year and each of the
preceding 6 fiscal years from each national forest shall be
paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid''
and inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal
years from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For each of fiscal years 2008 through 2012, such sums as
are authorized under this chapter shall be made available to
the Secretary of the Interior, out of any amounts in the
Treasury not otherwise appropriated, for obligation or
expenditure in accordance with this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(d) Increase in Information Return Penalties.--
(1) Failure to file correct information returns.--
(A) In general.--Section 6721(a)(1) of the Internal Revenue
Code of 1986 is amended--
(i) by striking ``$50'' and inserting ``$250'', and
(ii) by striking ``$250,000'' and inserting ``$3,000,000''.
(B) Reduction where correction in specified period.--
(i) Correction within 30 days.--Section 6721(b)(1) of such
Code is amended--
(I) by striking ``$15'' and inserting ``$50'',
(II) by striking ``$50'' and inserting ``$250'', and
(III) by striking ``$75,000'' and inserting ``$500,000''.
(ii) Failures corrected on or before august 1.--Section
6721(b)(2) of such Code is amended--
(I) by striking ``$30'' and inserting ``$100'',
(II) by striking ``$50'' and inserting ``$250'', and
(III) by striking ``$150,000'' and inserting
``$1,500,000''.
(C) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) of such Code is
amended--
(i) in subparagraph (A)--
(I) by striking ``$100,000'' and inserting ``$1,000,000'',
and
(II) by striking ``$250,000'' and inserting ``$3,000,000'',
(ii) in subparagraph (B)--
(I) by striking ``$25,000'' and inserting ``$175,000'', and
(II) by striking ``$75,000'' and inserting ``$500,000'',
and
(iii) in subparagraph (C)--
(I) by striking ``$50,000'' and inserting ``$500,000'', and
(II) by striking ``$150,000'' and inserting ``$1,500,000''.
(D) Penalty in case of intentional disregard.--Section
6721(e) of such Code is amended--
(i) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(ii) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(2) Failure to furnish correct payee statements.--
(A) In general.--Section 6722(a) of the Internal Revenue
Code of 1986 is amended--
(i) by striking ``$50'' and inserting ``$250'', and
(ii) by striking ``$100,000'' and inserting ``$1,000,000''.
(B) Penalty in case of intentional disregard.--Section
6722(c) of such Code is amended--
(i) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(ii) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(3) Failure to comply with other information reporting
requirements.--Section 6723 of the Internal Revenue Code of
1986 is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(4) Effective date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.
(e) Repeal of Suspension of Certain Penalties and
Interest.--
(1) In general.--Section 6404 of the Internal Revenue Code
of 1986 is amended by striking subsection (g).
(2) Effective date.--
(A) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to notices
provided by the Secretary of the Treasury, or his delegate
after the date which is 6 months after the date of the
enactment of this Act.
(B) Exception for certain taxpayers.--The amendment made by
this section shall not apply to any taxpayer with respect to
whom a suspension of any interest, penalty, addition to tax,
or
[[Page S4107]]
other amount is in effect on the date which is 6 months after
the date of the enactment of this Act.
(f) Participants in Government Section 457 Plans Allowed to
Treat Elective Deferrals as Roth Contributions.--
(1) In general.--Section 402A(e)(1) of the Internal Revenue
Code of 1986 (defining applicable retirement plan) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as defined in
section 457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(2) Elective deferrals.--Section 402A(e)(2) of the Internal
Revenue Code of 1986 (defining elective deferral) is amended
to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in subparagraph (A)
or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described
in section 457(e)(1)(A).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2007.
Sec. 2602. Disaster relief funds from Public Law 109-234,
120 Stat. 418, 461, (June 30, 2006), chapter 5, ``National
Park Service--Historic Preservation Fund,'' for necessary
expenses related to the consequences of Hurricane Katrina and
other hurricanes of the 2005 season, may be used to
reconstruct destroyed properties that at the time of
destruction were listed in the National Register of Historic
Places and are otherwise qualified to receive these funds:
Provided, That the State Historic Preservation Officer
certifies that, for the community where that destroyed
property was located, that the property is iconic to or
essential to illustrating that community's historic identity,
that no other property in that community with the same
associative historic value has survived, and that sufficient
historical documentation exists to ensure an accurate
reproduction.
CHAPTER 7
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Disease Control and Prevention
DISEASE CONTROL, RESEARCH AND TRAINING
For an additional amount for ``Department of Health and
Human Services, Centers for Disease Control and Prevention,
Disease Control, Research and Training'', to carry out
section 501 of the Federal Mine Safety and Health Act of 1977
and section 6 of the Mine Improvement and New Emergency
Response Act of 2006, $13,000,000 for research to develop
mine safety technology, including necessary repairs and
improvements to leased laboratories: Provided, That progress
reports on technology development shall be submitted to the
House and Senate Committees on Appropriations and the
Committee on Health, Education, Labor and Pensions of the
Senate and the Committee on Education and Labor of the House
of Representatives on a quarterly basis: Provided further,
That the amount provided under this heading shall remain
available until September 30, 2008.
Administration for Children and Families
LOW-INCOME HOME ENERGY ASSISTANCE
For an additional amount for ``Low-Income Home Energy
Assistance'' under section 2604(a) through (d) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(a)
through (d)), $320,000,000.
For an additional amount for ``Low-Income Home Energy
Assistance'' under section 2604(e) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8623(e)),
$320,000,000.
Office of the Secretary
PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND
(INCLUDING TRANSFER OF FUNDS)
For an additional amount for ``Public Health and Social
Services Emergency Fund'' to prepare for and respond to an
influenza pandemic, $820,000,000, to remain available until
expended: Provided, That this amount shall be for activities
including the development and purchase of vaccine,
antivirals, necessary medical supplies, diagnostics, and
other surveillance tools: Provided further, That products
purchased with these funds may, at the discretion of the
Secretary of Health and Human Services, be deposited in the
Strategic National Stockpile: Provided further, That
notwithstanding section 496(b) of the Public Health Service
Act, funds may be used for the construction or renovation of
privately owned facilities for the production of pandemic
vaccine and other biologicals, where the Secretary finds such
a contract necessary to secure sufficient supplies of such
vaccines or biologicals: Provided further, That funds
appropriated herein may be transferred to other appropriation
accounts of the Department of Health and Human Services, as
determined by the Secretary to be appropriate, to be used for
the purposes specified in this sentence.
COVERED COUNTERMEASURE PROCESS FUND
For carrying out section 319F-4 of the Public Health
Service Act (42 U.S.C. 247d-6e) to compensate individuals for
injuries caused by H5N1 vaccine, in accordance with the
declaration regarding avian influenza viruses issued by the
Secretary of Health and Human Services on January 26, 2007,
pursuant to section 319F-3(b) of such Act (42 U.S.C. 247d-
6d(b)), $50,000,000, to remain available until expended.
DEPARTMENT OF EDUCATION
Higher Education
For an additional amount under part B of title VII of the
Higher Education Act of 1965 (``HEA'') for institutions of
higher education (as defined in section 102 of that Act) that
are located in an area in which a major disaster was declared
in accordance with section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act related to
hurricanes in the Gulf of Mexico in calendar year 2005,
$30,000,000: Provided, That such funds shall be available to
the Secretary of Education only for payments to help defray
the expenses (which may include lost revenue, reimbursement
for expenses already incurred, and construction) incurred by
such institutions of higher education that were forced to
close, relocate or significantly curtail their activities as
a result of damage directly caused by such hurricanes and for
payments to enable such institutions to provide grants to
students who attend such institutions for academic years
beginning on or after July 1, 2006: Provided further, That
such payments shall be made in accordance with criteria
established by the Secretary and made publicly available
without regard to section 437 of the General Education
Provisions Act, section 553 of title 5, United States Code,
or part B of title VII of the HEA.
Hurricane Education Recovery
For carrying out activities authorized by subpart 1 of part
D of title V of the Elementary and Secondary Education Act of
1965, $30,000,000, to remain available until expended, for
use by the States of Louisiana, Mississippi, and Alabama
primarily for recruiting, retaining, and compensating new and
current teachers, principals, school leaders, and other
educators for positions in public elementary and secondary
schools located in an area with respect to which a major
disaster was declared under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) by reason of Hurricane Katrina or Hurricane
Rita, including through such mechanisms as paying salary
premiums, performance bonuses, housing subsidies, and
relocation costs, with priority given to teachers and school
leaders who were displaced from, or lost employment in,
Louisiana, Mississippi, or Alabama by reason of Hurricane
Katrina or Hurricane Rita and who return to and are rehired
by such State or local educational agency; Provided, That
funds available under this heading to such States may also be
used for 1 or more of the following activities: (1) to build
the capacity of such public elementary and secondary schools
to provide an effective education, including the design,
adaptation, and implementation of high-quality formative
assessments; (2) the establishment of partnerships with
nonprofit entities with a demonstrated track record in
recruiting and retaining outstanding teachers and other
school leaders; and (3) paid release time for teachers and
principals to identify and replicate successful practices
from the fastest-improving and highest-performing schools:
Provided further, That the Secretary of Education shall
allocate amounts available under this heading among such
States that submit applications; that such allocation shall
be based on the number of public elementary and secondary
schools in each State that were closed for 19 days or more
during the period beginning on August 29, 2005, and ending on
December 31, 2005, due to Hurricane Katrina or Hurricane
Rita; and that such States shall in turn allocate funds, on a
competitive basis, to local educational agencies, with
priority given first to such agencies with the highest
percentages of public elementary and secondary schools that
are closed as a result of such hurricanes as of the date of
enactment of this Act and then to such agencies with the
highest percentages of public elementary and secondary
schools with a student-teacher ratio of at least 25 to 1, and
with any remaining amounts to be distributed to such agencies
with demonstrated need, as determined by the State
educational agency: Provided further, That, in the case of a
State that chooses to use amounts available under this
heading for performance bonuses, not later than 60 days after
the date of enactment of this Act and after consultation
with, as applicable, local educational agencies, teachers'
unions, local principals' organizations, local parents'
organizations, local business organizations, and local
charter schools organizations, such State shall establish and
implement a rating system for such performance bonuses based
on strong learning gains for students and growth in student
achievement, based on classroom observation and feedback at
least 4 times annually, conducted by multiple sources
(including principals and master teachers), and evaluated
against research-validated rubrics that use planning,
instructional, and learning environment standards to measure
teaching performance: Provided further, That the amount
provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).
Hurricane Education Recovery
programs to restart school operations
Funds made available under section 102 of the Hurricane
Education Recovery Act (title IV of division B of Public Law
109-148) may be used by the States of Louisiana, Mississippi,
Alabama, and Texas, in addition to the uses of funds
described in section 102(e) for the following costs: (1)
recruiting, retaining and compensating new and current
teachers, principals, school leaders, other school
administrators, and other educators for positions in
reopening public elementary and secondary schools impacted by
Hurricane Katrina or Hurricane Rita, including through such
mechanisms as paying salary premiums, performance bonuses,
housing subsidies and relocation costs; and (2) activities to
build
[[Page S4108]]
the capacity of reopening such public elementary and
secondary schools to provide an effective education,
including the design, adaptation, and implementation of high-
quality formative assessments; the establishment of
partnerships with nonprofit entities with a demonstrated
track record in recruiting and retaining outstanding teachers
and other school leaders; and paid release time for teachers
and principals to identify and replicate successful practices
from the fastest-improving and highest-performing schools:
Provided further, That in the case of a State that chooses to
use amounts available under this heading for performance
bonuses, not later than 60 days after the date of enactment
of this Act and after consultation with, as applicable, local
educational agencies, teachers' unions, local principals'
organizations, local parents' organizations, local business
organizations, and local charter schools organizations, such
State shall establish and implement a rating system that
shall be based on strong learning gains for students and
growth in student achievement, based on classroom observation
and feedback at least 4 times annually, conducted by multiple
sources (including principals and master teachers), and
evaluated against research-validated rubrics that use
planning, instructional, and learning environment standards
to measure teaching performance: Provided further, That the
amount provided under this heading is designated as an
emergency requirement pursuant to section 402 of H. Con. Res.
95 (109th Congress).
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2701. Section 105(b) of title IV of division B of
Public Law 109-148 is amended by adding at the end the
following new sentence: ``With respect to the program
authorized by section 102 of this Act, the waiver authority
in subsection (a) of this section shall be available until
the end of fiscal year 2008.''
(including rescission)
Sec. 2702. (a) From unexpended balances of the amounts made
available in the 2001 Emergency Supplemental Appropriations
Act for Recovery from and Response to Terrorist Attacks on
the United States (Public Law 107-38) for the Employment
Training Administration, Training and Employment Services
under the Department of Labor, $3,589,000 are rescinded.
(b) For an additional amount for the Centers for Disease
Control and Prevention for carrying out activities under
section 5011(b) of the Emergency Supplemental Appropriations
Act to Address Hurricanes in the Gulf of Mexico and Pandemic
Influenza, 2006 (Public Law 109-148), $3,589,000.
Sec. 2703. Notwithstanding section 2002(c) of the Social
Security Act (42 U.S.C. 1397a(c)), funds made available under
the heading ``Social Services Block Grant'' in division B of
Public Law 109-148 shall be available for expenditure by the
States through the end of fiscal year 2008.
Sec. 2704. Elimination of Remainder of SCHIP Funding
Shortfalls for Fiscal Year 2007. (a) Elimination of Remainder
of Funding Shortfalls, Tiered Match, and Other Limitation on
Expenditures.--Section 2104(h) of the Social Security Act (42
U.S.C. 1397dd(h)), as added by section 201(a) of the National
Institutes of Health Reform Act of 2006 (Public Law 109-482),
is amended--
(1) in the heading for paragraph (2), by striking
``remainder of reduction'' and inserting ``part''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Additional amounts to eliminate remainder of fiscal
year 2007 funding shortfalls.--
``(A) In general.--The Secretary shall allot to each
remaining shortfall State described in subparagraph (B) such
amount as the Secretary determines will eliminate the
estimated shortfall described in such subparagraph for the
State for fiscal year 2007.
``(B) Remaining shortfall state described.--For purposes of
subparagraph (A), a remaining shortfall State is a State with
a State child health plan approved under this title for which
the Secretary estimates, on the basis of the most recent data
available to the Secretary as of the date of the enactment of
this paragraph, that the projected federal expenditures under
such plan for the State for fiscal year 2007 will exceed the
sum of--
``(i) the amount of the State's allotments for each of
fiscal years 2005 and 2006 that will not be expended by the
end of fiscal year 2006;
``(ii) the amount of the State's allotment for fiscal year
2007; and
``(iii) the amounts, if any, that are to be redistributed
to the State during fiscal year 2007 in accordance with
paragraphs (1) and (2).
``(C) Appropriation; allotment authority.--For the purpose
of providing additional allotments to remaining shortfall
States under this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appropriated, such sums
as are necessary for fiscal year 2007.''.
(b) Conforming Amendments.--Section 2104(h) of such Act (42
U.S.C. 1397dd(h)) (as so added), is amended--
(1) in paragraph (1)(B), by striking ``subject to paragraph
(4)(B) and'';
(2) in paragraph (2)(B), by striking ``subject to paragraph
(4)(B) and'';
(3) in paragraph (5)(A), by striking ``and (3)'' and
inserting ``(3), and (4)''; and
(4) in paragraph (6)--
(A) in the first sentence--
(i) by inserting ``or allotted'' after ``redistributed'';
and
(ii) by inserting ``or allotments'' after
``redistributions''; and
(B) by striking ``and (3)'' and inserting ``(3), and (4)''.
(c) General Effective Date; Applicability.--Except as
otherwise provided, the amendments made by this section take
effect on the date of enactment of this Act and apply without
fiscal year limitation.
Sec. 2705. Notwithstanding any other provision of law, the
Secretary of Health and Human Services shall not, prior to
the date that is 2 years after the date of enactment of this
Act, take any action to finalize, or otherwise implement
provisions--
(1) contained in the proposed rule published on January 18,
2007, on pages 2236 through 2258 of volume 72, Federal
Register (relating to parts 433, 447, and 457 of title 42,
Code of Federal Regulations) or any other rule that would
affect the Medicaid program established under title XIX of
the Social Security Act or the State Children's Health
Insurance Program established under title XXI of such Act in
a similar manner; or
(2) restricting payments for graduate medical education
under the Medicaid program.
(a) Medicare Critical Access Hospital Designation.--Section
405(h) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2269) is amended by adding at the end the following new
paragraph:
``(3) Exception.--
``(A) State of minnesota.--The amendment made by paragraph
(1) shall not apply to the certification by the State of
Minnesota on or after January 1, 2006, under section
1820(c)(2)(B)(i)(II) of the Social Security Act (42 U.S.C.
1395i-4(c)(2)(B)(i)(II)) of one hospital that meets the
criteria described in subparagraph (B) and is located in Cass
County, Minnesota, as a necessary provider of health care
services to residents in the area of the hospital.
``(B) Criteria described for hospital in minnesota.--A
hospital meets the criteria described in this subparagraph if
the hospital--
``(i) has been granted an exception by the State to an
otherwise applicable statutory restriction on hospital
construction or licensing prior to the date of enactment of
this subparagraph; and
``(ii) is located on property which the State has approved
for conveyance to a county within the State prior to such
date of enactment.
``(C) State of mississippi.--The amendment made by
paragraph (1) shall not apply to the certification by the
State of Mississippi on or after April 1, 2007, under section
1820(c)(2)(b)(i)(II) of the Social Security Act (42 U.S.C.
1395i-4(c)(2)(B)(i)(II)) of one hospital that meets the
criteria described in subparagraph (D) and is located in
Kemper County, Mississippi, as a necessary provider of health
care services to residents in the area of the hospital.
``(D) Criteria described for hospital in mississippi.--A
hospital meets the criteria described in this subparagraph if
the hospital--
``(i) meets all other criteria for designation as a
critical access hospital under section 1820(c)(2)(b) of the
Social Security Act (42 U.S.C. 1395i-4(c)(2)(B));
``(ii) has satisfied the requirement of the certificate of
need laws and regulations of the State of Mississippi; and
``(iii) will be constructed on property that will be
conveyed by the Kemper County Board of Supervisors within the
State of Mississippi.''.
(b) Increase in Basic Rebate for Single Source Drugs and
Innovator Multiple Source Drugs.--Section 1927(c)(1)(B)(i) of
the Social Security Act (42 U.S.C. 1396r-8(c)(1)(B)(i)) is
amended--
(1) in subclause (IV), by striking ``and'' after the
semicolon;
(2) in subclause (V)--
(A) by inserting ``and before April 1, 2007,'' after
``1995,''; and
(B) by striking the period and inserting ``; and''; and
(3) by adding at the end the following:
``(VI) after March 31, 2007, is 20 percent.''.
Sec. 2705. (a) For grant years beginning in 2006-2007, the
Secretary of Health and Human Services may waive the
requirements of, with respect to Louisiana, Mississippi,
Alabama, and Texas and any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas, the following
sections of the Public Health Service Act:
(1) Section 2612(e)(1) of such Act (42 U.S.C. 300ff-
21(b)(1)).
(2) Section 2617(b)(7)(E) of such Act (42 U.S.C. 300ff-
27(b)(7)(E)).
(3) Section 2617(d) of such Act (42 U.S.C. 300ff-27(d)),
except that such waiver shall apply so that the matching
requirement is reduced to $1 for each $4 of Federal funds
provided under the grant involved.
(b) If the Secretary of Health and Human Services grants a
waiver under subsection (b), the Secretary--
(1) may not prevent Louisiana, Mississippi, Alabama, and
Texas or any eligible metropolitan area in Louisiana,
Mississippi, Alabama, and Texas from receiving or utilizing,
or both, funds granted or distributed, or both, pursuant to
title XXVI of the Public Health Service Act (42 U.S.C. 300ff-
11 et seq.) because of the failure of Louisiana, Mississippi,
Alabama, and Texas or any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas to comply with the
requirements of the sections listed in paragraphs (1) through
(3) of subsection (a);
(2) may not take action due to such noncompliance; and
(3) shall assess, evaluate, and review Louisiana,
Mississippi, Alabama, and Texas or any eligible metropolitan
area's eligibility for funds under such title XXVI as if
Louisiana, Mississippi, Alabama, and Texas or such eligible
metropolitan area had fully complied with the requirements of
the sections listed in paragraphs (1) through (3) of
subsection (a).
(c) For grant years beginning in 2008, Louisiana,
Mississippi, Alabama, and Texas and any eligible metropolitan
area in Louisiana, Mississippi, Alabama, and Texas shall
comply with each of the applicable requirements under
[[Page S4109]]
title XXVI of the Public Health Service Act (42 U.S.C. 300ff-
11 et seq.).
CHAPTER 8
LEGISLATIVE BRANCH
ARCHITECT OF THE CAPITOL
Capitol Power Plant
For an additional amount for ``Capitol Power Plant'',
$25,000,000, for emergency utility tunnel repairs and
asbestos abatement, to remain available until September 30,
2011: Provided, That the Architect of the Capitol may not
obligate any of the funds appropriated under this heading
without approval of an obligation plan by the Committees on
Appropriations of the Senate and House of Representatives.
GOVERNMENT ACCOUNTABILITY OFFICE
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'' of
the Government Accountability Office, $374,000, to remain
available until expended.
CHAPTER 9
DEPARTMENT OF DEFENSE
MILITARY CONSTRUCTION
Military Construction, Air Force Reserve
(Including Rescission of Funds)
For an additional amount for ``Military Construction, Air
Force Reserve'', $3,096,000, to remain available until
September 30, 2011: Provided, That such funds may be
obligated and expended to carry out planning and design and
military construction projects not otherwise authorized by
law.
Of the funds appropriated for ``Military Construction, Air
Force Reserve'' under Public Law 109-114, $3,096,000 are
hereby rescinded.
Department of Defense Base Closure Account, 2005
For deposit into the Department of Defense Base Closure
Account 2005, established by section 2906(a)(1) of the
Defense Base Closure and Realignment Act of 1990 (10 U.S.C.
2687 note), $3,136,802,000, to remain available until
expended.
DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
MEDICAL SERVICES
For an additional amount for ``Medical Services'',
$454,131,000, to remain available until expended, of which
$50,000,000 shall be for the establishment of new Level I
comprehensive polytrauma centers; $9,440,000 shall be for the
establishment of polytrauma residential transitional
rehabilitation programs; $20,000,000 shall be for additional
transition caseworkers; $30,000,000 shall be for substance
abuse treatment programs; $20,000,000 for readjustment
counseling; $10,000,000 shall be for blind rehabilitation
services; $100,000,000 shall be for enhancements to mental
health services; $8,000,000 shall be for polytrauma support
clinic teams; $5,356,000 for additional polytrauma points of
contacts; and $201,335,000 shall be for treatment of
Operation Enduring Freedom and Operation Iraqi Freedom
veterans.
MEDICAL ADMINISTRATION
For an additional amount for ``Medical Administration'',
$250,000,000, to remain available until expended.
MEDICAL FACILITIES
For an additional amount for ``Medical Facilities'',
$595,000,000, to remain available until expended, of which
$45,000,000 shall be used for facility and equipment upgrades
at the Department of Veterans Affairs polytrauma
rehabilitation centers and the polytrauma network sites; and
$550,000,000 shall be for non-recurring maintenance as
identified in the Department of Veterans Affairs Facility
Condition Assessment report: Provided, That the amount
provided under this heading for non-recurring maintenance
shall be allocated in a manner outside of the Veterans
Equitable Resource Allocation and specific to the needs and
geographic distribution of Operation Enduring Freedom and
Operation Iraqi Freedom veterans: Provided further, That
within 30 days of enactment of this Act the Secretary shall
submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for non-recurring maintenance
prior to obligation.
MEDICAL AND PROSTHETIC RESEARCH
For an additional amount for ``Medical and Prosthetic
Research'', $30,000,000, to remain available until expended,
which shall be used for research related to the unique
medical needs of returning Operation Enduring Freedom and
Operation Iraqi Freedom veterans.
Departmental Administration
GENERAL OPERATING EXPENSES
For an additional amount for ``General Operating
Expenses'', $46,000,000, to remain available until expended,
for the hiring and training of new pension and compensation
claims processing personnel.
INFORMATION TECHNOLOGY SYSTEMS
For an additional amount for ``Information Technology
Systems'', $36,100,000, to remain available until expended,
of which $20,000,000 shall be for information technology
support and improvements for processing of OIF/OEF veterans
benefits claims, including making electronic DOD medical
records available for claims processing and enabling
electronic benefits applications by veterans; $1,000,000
shall be for the digitization of benefits records; and
$15,100,000 shall be for electronic data breach and
remediation and prevention.
CONSTRUCTION, MINOR PROJECTS
For an additional amount for ``Construction, Minor
Projects'', $355,907,000, to remain available until expended,
of which $36,000,000 shall be for construction costs
associated with the establishment of polytrauma residential
transitional rehabilitation programs.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 2901. (a) Notwithstanding any other provision of law,
none of the funds in this or any other Act shall be used to
downsize staff or to close, realign or phase out essential
services at Walter Reed Army Medical Center until equivalent
medical facilities at the Walter Reed National Military
Medical Center at Naval Medical Center, Bethesda, Maryland,
and/or the Fort Belvoir, Virginia, Community Hospital have
been constructed and equipped, and until the Secretary of
Defense has certified in writing to the Congress that:
(1) the new facilities at Walter Reed National Military
Medical Center at Bethesda and/or the Fort Belvoir Community
Hospital are complete and fully operational, and
(2) replacement medical facilities at Walter Reed National
Military Medical Center at Bethesda have adequate capacity to
meet both the existing and projected demand for complex
medical care and services, including outpatient and medical
hold facilities, for combat veterans and other military
personnel.
(b) Not later than 30 days after enactment of this Act, the
Secretary of Defense shall provide to the Committees on
Appropriations of the Senate and House of Representatives a
report and proposed timetable outlining the Department's plan
to transition patients, staff and medical services to the new
facilities at Bethesda and Fort Belvoir without compromising
patient care, staffing requirements or facility maintenance
at the Walter Reed Medical Center.
(c) To ensure that the quality of care provided by the
Military Health System is not diminished during this
transition, the Walter Reed Army Medical Center shall be
adequately funded, to include necessary renovation and
maintenance of existing facilities, to continue the maximum
level of inpatient and outpatient services.
Sec. 2902. Notwithstanding any other provision of law, none
of the funds in this or any other Act shall be used to
reorganize or relocate the functions of the Armed Forces
Institute of Pathology (AFIP) until the Secretary of Defense
has submitted, not later than December 31, 2007, a detailed
plan and timetable for the proposed reorganization and
relocation to the Committees on Appropriations and Armed
Services of the Senate and House of Representatives. The plan
shall take into consideration the recommendations of a study
being prepared by the Government Accountability Office (GAO),
provided that such study is available not later than 45 days
before the date specified in this section, on the impact of
dispersing selected functions of AFIP among several
locations, and the possibility of consolidating those
functions at one location. The plan shall include an analysis
of the options for the location and operation of the Program
Management Office for second opinion consults that are
consistent with the recommendations of the Base Realignment
and Closure Commission, together with the rationale for the
option selected by the Secretary.
Sec. 2903. Within existing funds appropriated to
Departmental Administration, General Operating Expenses for
fiscal year 2007, and within 30 days after enactment of this
Act, the Department of Veterans Affairs shall contract with
the National Academy of Public Administration for the purpose
of conducting an independent study and analysis of the
organizational structure, management and coordination
processes, including Seamless Transition, utilized by the
Department of Veterans affairs to:
(1) provide health care to active duty and veterans of
Operation Enduring Freedom and Operation Iraqi Freedom; and
(2) provide benefits to veterans of Operation Enduring
Freedom and Operation Iraqi Freedom.
Sec. 2904. The Director of the Congressional Budget Office
shall, not later than November 15, 2007, submit to the
Committees on Appropriations of the House of Representatives
and the Senate a report projecting appropriations necessary
for the Departments of Defense and Veterans Affairs to
continue providing necessary health care to veterans of the
conflicts in Iraq and Afghanistan. The projections should
span several scenarios for the duration and number of forces
deployed in Iraq and Afghanistan, and more generally, for the
long-term health care needs of deployed troops engaged in the
global war on terrorism over the next ten years.
CHAPTER 10
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Federal-Aid Highways
Emergency Relief Program
(including rescission of funds)
For an additional amount for the Emergency Relief Program
as authorized under section 125 of title 23, United States
Code, $388,903,000, to remain available until expended:
Provided, That of the unobligated balances of funds
apportioned to each State under chapter 1 of title 23, United
States Code, $388,903,000 are rescinded: Provided further,
That such rescission shall not apply to the funds distributed
in accordance with sections 130(f) and 104(b)(5) of title 23,
United States Code; sections 133(d)(1) and 163 of such title,
as in effect on the day before the date of enactment of
Public Law 109-59; and the first sentence of section
133(d)(3)(A) of such title: Provided further, That section
4103 of title III of this Act shall not apply to the first
proviso under this paragraph.
Federal Transit Administration
Formula Grants
For an additional amount to be allocated by the Secretary
to recipients of assistance under chapter 53 of title 49,
United States Code, directly affected by Hurricanes Katrina
and Rita, $75,000,000, for the operating and capital costs of
transit services, to remain available until expended:
Provided, That the Federal share for
[[Page S4110]]
any project funded from this amount shall be 100 percent.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Inspector General
For an additional amount for the Office of Inspector
General, for the necessary costs related to the consequences
of Hurricanes Katrina and Rita, $5,000,000, to remain
available until expended.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3001. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by adding after the
third proviso: ``: Provided further, That notwithstanding the
previous proviso, except for applying the 2007 Annual
Adjustment Factor and making any other specified adjustments,
public housing agencies that are eligible for assistance
under section 901 in Public Law 109-148 (119 Stat. 2781)
shall receive funding for calendar year 2007 based on the
amount such public housing agencies were eligible to receive
in calendar year 2006''.
TITLE III
OTHER MATTERS
CHAPTER 1
DEPARTMENT OF AGRICULTURE
Farm Service Agency
SALARIES AND EXPENSES
For an additional amount for ``Salaries and Expenses'' of
the Farm Service Agency, $75,000,000, to remain available
until expended: Provided, That this amount shall only be
available for the modernization and repair of the computer
systems used by the Farm Service Agency (including all
software, hardware, and personnel required for modernization
and repair): Provided further, That of this amount
$27,000,000 shall be made available 60 days after the date on
which the Farm Service Agency submits to the Committee on
Appropriations of the Senate, the Committee on Appropriations
of the House of Representatives, and the Government
Accountability Office a spending plan for the funds.
GENERAL PROVISIONS--THIS CHAPTER
(rescission)
Sec. 3101. Of the unobligated balances of funds made
available pursuant to section 298(a) of the Trade Act of 1974
(19 U.S.C. 2401G(a)), $75,000,000 are rescinded.
Sec. 3102. (a) Section 1237A(f) of the Food Security Act of
1985 (16 U.S.C. 3837a(f)) is amended in the first sentence by
striking ``fair market value of the land less the fair market
value of such land encumbered by the easement'' and inserting
``fair market value of the land as determined in accordance
with the method of valuation used by the Secretary as of
January 1, 2003''.
(b) Section 1238I(c)(1) of the Food Security Act of 1985
(16 U.S.C. 3838i(c)(1)) is amended by inserting at the end
the following:
``(C) Valuation.--The Secretary shall determine fair market
value under this paragraph in accordance with the method of
valuation used by the Secretary as of January 1, 2003.''.
Sec. 3103. Subsection (b)(1) of section 313A of the Rural
Electrification Act shall not apply in the case of a
cooperative lender that has previously received a guarantee
under section 313A and such additional guarantees shall not
exceed the amount provided for in Public Law 110-5.
Sec. 3104. Spinach. No funds made available under this Act
shall be used to make payments to growers and first handlers,
as defined by the Secretary of Health and Human Services, of
fresh spinach that were unable to market spinach crops as a
result of the Food and Drug Administration Public Health
Advisory issued on September 14, 2006.
CHAPTER 2
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3201. Section 20314 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by striking
``Resources.'' and inserting in lieu thereof: ``Resources:
Provided, That $22,762,000 of the amount provided be for
geothermal research and development activities: Provided
further, That $229,500,000 of the amount provided shall be
used for the weatherization assistance program of the
Department of Energy.''.
Sec. 3202. Hereafter, federal employees at the National
Energy Technology Laboratory shall be classified as
inherently governmental for the purpose of the Federal
Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note).
Sec. 3203. Prohibition on Certain Uses of Funds by BPA.
None of the funds made available under this or any other Act
shall be used during fiscal year 2007 to make, or plan or
prepare to make, any payment on bonds issued by the
Administrator of the Bonneville Power Administration
(referred in this section as the ``Administrator'') or for an
appropriated Federal Columbia River Power System investment,
if the payment is both--
(1) greater, during any fiscal year, than the payments
calculated in the rate hearing of the Administrator to be
made during that fiscal year using the repayment method used
to establish the rates of the Administrator as in effect on
October 1, 2006; and
(2) based or conditioned on the actual or expected net
secondary power sales receipts of the Administrator.
CHAPTER 3
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3301. The structure of any of the offices or
components within the Office of National Drug Control Policy
shall remain as they were on October 1, 2006. None of the
funds appropriated or otherwise made available in the
Continuing Appropriations Resolution, 2007 (Public Law 110-5)
may be used to implement a reorganization of offices within
the Office of National Drug Control Policy without the
explicit approval of the Committees on Appropriations of the
House of Representatives and the Senate.
Sec. 3302. Funds made available in section 21075 of the
Continuing Appropriations Resolution, 2007 (Public Law 110-5)
shall be made available to a 501(c)(3) entity: (1) with a
wide anti-drug coalition network and membership base, and one
with a demonstrated track record and specific expertise in
providing technical assistance, training, evaluation,
research, and capacity building to community anti-drug
coalitions; (2) with authorization from Congress, both prior
to fiscal year 2007, and in fiscal years 2008 through 2012,
to perform the duties described in subsection (1) of this
section; and (3) that has previously received funding from
Congress, including through a competitive process as well as
direct funding, for providing the duties described in
subsection (1) of this section: Provided, That funds
appropriated in section 21075 shall be obligated within sixty
days after enactment of this Act.
Sec. 3303. Funds made available under section 613 of Public
Law 109-108 (119 Stat. 2338) for Nevada's Commission on
Economic Development shall be made available to the Nevada
Center for Entrepreneurship and Technology (CET).
Sec. 3304. From the amount provided by section 21067 of the
Continuing Appropriations Resolution, 2007 (Public Law 110-
5), the National Archives and Records Administration may
obligate monies necessary to carry out the activities of the
Public Interest Declassification Board.
Sec. 3305. None of the funds appropriated or otherwise made
available in section 21063 of the Continuing Appropriations
Resolution, 2007 (Public Law 110-5) for the ``General
Services Administration, Real Property Activities, Federal
Buildings Fund'', may be obligated for design, construction,
or acquisition until the House and Senate Committees on
Appropriations approve a revised detailed plan, by project,
on the use of such funds: Provided, That the new plan shall
include funding for completion of courthouse construction
projects which received funding in fiscal year 2006 above a
level of $5,000,000: Provided further, That such plan shall
be provided by the Administrator of the General Services
Administration to the House of Representatives and the Senate
Committees on Appropriations within seven days of enactment.
Sec. 3306. Notwithstanding the notice requirement of the
Transportation, Treasury, Housing and Urban Development, the
Judiciary, the District of Columbia, and Independent Agencies
Appropriations Act, 2006, 119 Stat. 2509 (Public Law 109-
115), as continued in section 104 of the Continuing
Appropriations Resolution, 2007 (Public Law 110-5), the
District of Columbia Courts may reallocate not more than
$1,000,000 of the funds provided for fiscal year 2007 under
the Federal Payment to the District of Columbia Courts for
facilities among the items and entities funded under that
heading for operations.
Sec. 3307. (a) Not later than 90 days after the date of
enactment of this Act, the Secretary of the Treasury, in
coordination with the Securities and Exchange Commission and
in consultation with the Departments of State and Energy,
shall prepare and submit to the Senate Committee on
Appropriations, the House of Representatives Committee on
Appropriations, the Senate Foreign Relations Committee, and
the House Foreign Affairs Committee an unclassified report,
suitable to be made public, that contains the names of (1)
all companies trading in securities that are registered under
section 12 of the Securities Exchange Act of 1934 (15 U.S.C.
781) which either directly or through a parent or subsidiary
company, including partly-owned subsidiaries, conduct
business operations in Sudan relating to natural resource
extraction, including oil-related activities and mining of
minerals; and (2) the names of all other companies, which
either directly or through a parent or subsidiary company,
including partly-owned subsidiaries, conduct business
operations in Sudan relating to natural resource extraction,
including oil-related activities and mining of minerals. The
reporting provision shall not apply to companies operating
under licenses from the Office of Foreign Assets Control or
otherwise expressly exempted under United States law from
having to obtain such licenses in order to operate in Sudan.
(b) Not later than 20 days after enactment, the Secretary
of the Treasury shall inform the aforementioned committees of
Congress of any statutory or other legal impediments to the
successful completion of this report.
(c) Not later than 45 days following the submission to
Congress of the list of companies conducting business
operations in Sudan relating to natural resource extraction
required above, the General Services Administration shall
determine whether the United States Government has an active
contract for the procurement of goods or services with any of
the identified companies, and provide notification to the
appropriate committees of Congress of the companies, nature
of the contract, and dollar amounts involved.
(including rescission)
Sec. 3308. (a) Of the funds provided for the General
Services Administration, ``Office of Inspector General'' in
section 21061 of the Continuing Appropriations Resolution,
2007 (division B of Public Law 109-289, as amended by Public
Law 110-5), $8,000,000 are rescinded.
(b) For an additional amount for the General Services
Administration, ``Office of Inspector General'', $8,000,000,
to remain available until September 30, 2008.
Sec. 3309. Section 21073 of the Continuing Appropriations
Resolution, 2007 (Public Law 110-5)
[[Page S4111]]
is amended by adding a new subsection (j) as follows:
``(j) Notwithstanding section 101, any appropriation or
funds made available to the District of Columbia pursuant to
this division for `Federal Payment for Foster Care
Improvement in the District of Columbia' shall be available
in accordance with an expenditure plan submitted by the Mayor
of the District of Columbia not later than 60 days after the
enactment of this section which details the activities to be
carried out with such Federal Payment.''.
Sec. 3310. Pursuant to section 140 of Public Law 97-92,
justices and judges of the United States are authorized
during fiscal year 2007 to receive a salary adjustment in
accordance with section 461 of title 28, United States Code.
CHAPTER 4
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3401. Any unobligated balances remaining from prior
appropriations for United States Coast Guard, ``Retired Pay''
shall remain available until expended in the account and for
the purposes for which the appropriations were provided,
including the payment of obligations otherwise chargeable to
lapsed or current appropriations for this purpose.
Sec. 3402. Integrated Deepwater System. (a) Competition for
Acquisition and Modification of Assets.--
(1) In general.--The Commandant of the Coast Guard shall
utilize full and open competition for any contract entered
into after the date of enactment of this Act that provides
for the acquisition or modification of assets under, or in
support of, the Integrated Deepwater System Program of the
Coast Guard.
(2) Exceptions.--Paragraph (1) shall not apply to the
following:
(A) The acquisition or modification of the following asset
classes for which assets of the class and related systems and
components under the Integrated Deepwater System are under a
contract for production:
(i) National Security Cutter;
(ii) Maritime Patrol Aircraft;
(iii) Deepwater Command, Control, Communications, Computer,
Intelligence, Surveillance, and Reconnaissance (C4ISR)
System; and
(iv) HC-130J Fleet Introduction.
(B) The modification of any legacy asset class under the
Integrated Deepwater System Program being performed by a
Coast Guard entity.
(b) Chair of Product and Oversight Teams.--The Commandant
of the Coast Guard shall assign an appropriate officer or
employee of the Coast Guard to act as chair of each of the
following:
(1) Each integrated product team under the Integrated
Deepwater System Program.
(2) Each higher-level team assigned to the oversight of a
product team referred to in paragraph (1).
(c) Life-cycle Cost Estimate.--The Commandant of the Coast
Guard may not enter into a contract for lead asset production
under the Integrated Deepwater System Program until the
Commandant obtains an independent estimate of life-cycle
costs of the asset concerned.
(d) Review of Acquisitions and Major Design Changes.--
(1) In general.--With the exception of assets covered under
(a)(2) of this section, the Commandant of the Coast Guard may
not carry out an action described in paragraph (2) unless an
independent third party with no financial interest in the
development, construction, or modification of any component
of the Integrated Deepwater System Program, selected by the
Commandant for purposes of the subsection, determines that
such action is advisable.
(2) Covered Actions.--The actions described in the
paragraph are as follows:
(A) The acquisition or modification of an asset under the
Integrated Deepwater System Program.
(B) The implementation of a major design change for an
asset under the Integrated Deepwater System Program.
(e) Linking of Award Fees to Successful Acquisition
Outcomes.--The Commandant of the Coast Guard shall require
that all contracts under the Integrated Deepwater System
Program that provide award fees link such fees to successful
acquisition outcomes (which shall be defined in terms of
cost, schedule, and performance).
(f) Contractual Agreements.--
(1) In general.--The Commandant of the Coast Guard may not
award or issue any contract, task or delivery order, letter
contract modification thereof, or other similar contract, for
the acquisition or modification of an asset under the
Integrated Deepwater System Program unless the Coast Guard
and the contractor concerned have formally agreed to all
terms and conditions.
(2) Exception.--A contract, task or delivery order, letter
contract, modification thereof, or other similar contract
described in paragraph (1) may be awarded or issued if the
head of contracting activity of the Coast Guard determines
that a compelling need exists for the award or issue of such
instrument.
(g) Designation of Technical Authority.--The Commandant of
the Coast Guard shall designate the Assistant Commandant of
the Coast Guard for Engineering and Logistics as the
technical authority for all engineering, design, and
logistics decisions pertaining to the Integrated Deepwater
System Program.
(h) Report on Personnel Required for Acquisition
Management.--Not later than 30 days after the date of the
enactment of this Act, the Commandant of the Coast Guard
shall submit to the Committees on Appropriations of the
Senate and the House of Representatives; the Committee on
Commerce, Science and Transportation of the Senate; and the
Committee on Transportation and Infrastructure of the House
of Representatives a report on the resources (including
training, staff, and expertise) required by the Coast Guard
to provide appropriate management and oversight of the
Integrated Deepwater System Program.
(i) Comptroller General Report on Progress.--Not later than
60 days after the date of enactment of this Act, the
Comptroller General of the United States shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives; the Committee on Commerce, Science and
Transportation of the Senate; and the Committee on
Transportation and Infrastructure of the House of
Representatives a report describing and assessing the
progress of the Coast Guard in complying with the
requirements of this section.
Sec. 3403. None of the funds provided in this Act or any
other Act may be used to alter or reduce operations within
the Civil Engineering Program of the Coast Guard nationwide,
including the civil engineering units, facilities, design and
construction centers, maintenance and logistics command
centers, the Coast Guard Academy and the Coast Guard Research
and Development Center, except as specifically authorized by
a statute enacted after the date of enactment of this Act.
CHAPTER 5
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3501. Section 20515 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting before
the period: ``; and of which, not to exceed $143,628,000
shall be available for contract support costs under the terms
and conditions contained in Public Law 109-54''.
Sec. 3502. Section 20512 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting after
the first dollar amount: ``, of which not to exceed
$7,300,000 shall be transferred to the `Indian Health
Facilities' account; the amount in the second proviso shall
be $18,000,000; the amount in the third proviso shall be
$525,099,000; the amount in the ninth proviso shall be
$269,730,000; and the $15,000,000 allocation of funding under
the eleventh proviso shall not be required''.
Sec. 3503. Section 20501 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting after
$55,663,000: ``of which $13,000,000 shall be for Save
America's Treasures''.
Sec. 3504. Of the funds made available to the United States
Fish and Wildlife Service for fiscal year 2007 under the
heading ``Land Acquisition'', not to exceed $1,980,000 may be
used for land conservation partnerships authorized by the
Highlands Conservation Act of 2004.
Sec. 3505. The Administrator of the Environmental
Protection Agency shall grant to the Water Environment
Research Foundation (WERF) such sums as were directed in
fiscal year 2005 and fiscal year 2006 for the On-Farm
Assessment and Environmental Review program: Provided, That
not less than 95 percent of funds made available shall be
used by WERF to award competitively a contract to perform the
program's environmental assessments: Provided further, That
WERF shall not retain more than 5 percent of such sums for
administrative expenses.
Sec. 3506. In providing any grants for small and rural
community technical and compliance assistance under the
Fiscal Year 2007 Operating Plan of the Environmental
Protection Agency, the Administrator of the Environmental
Protection Agency shall give priority to small systems and
qualified (as determined by the Administrator) organizations
that have the most need (or a majority of need) from small
communities in each State.
CHAPTER 6
DEPARTMENT OF HEALTH AND HUMAN SERVICES
National Institutes of Health
National Institute of Allergy and Infectious Diseases
(TRANSFER OF FUNDS)
Of the amount provided by the Continuing Appropriations
Resolution, 2007 for ``National Institute of Allergy and
Infectious Diseases'', $49,500,000 shall be transferred to
``Public Health and Social Services Emergency Fund'' to carry
out activities relating to advanced research and development
as provided by section 319L of the Public Health Service Act.
GENERAL PROVISIONS--THIS CHAPTER
(TRANSFER OF FUNDS)
Sec. 3601. Section 20602 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting the
following after ``$5,000,000'': ``(together with an
additional $7,000,000 which shall be transferred by the
Pension Benefit Guaranty Corporation as an authorized
administrative cost)''.
Sec. 3602. Section 20625(b)(1) of the Continuing
Appropriations Resolution, 2007 (division B of Public Law
109-289, as amended by Public Law 110-5) is amended by--
(1) striking ``$7,172,994,000'' and inserting
``$7,176,431,000'';
(2) amending subparagraph (A) to read as follows:
``(A) $5,454,824,000 shall be for basic grants under
section 1124 of the Elementary and Secondary Education Act of
1965 (ESEA), of which up to $3,437,000 shall be available to
the Secretary of Education on October 1, 2006, to obtain
annually updated educational-agency-level census poverty data
from the Bureau of the Census;''; and
(3) amending subparagraph (C) to read as follows:
``(C) not to exceed $2,352,000 may be available for section
1608 of the ESEA and for a clearinghouse on comprehensive
school reform under part D of title V of the ESEA;''.
[[Page S4112]]
Sec. 3603. (a) From the amounts available for Department of
Education, Safe Schools and Citizenship Education as provided
by the Continuing Appropriations Resolution, 2007,
$321,500,000 shall be available for Safe and Drug-Free
Schools State Grants and $247,335,000 shall be available for
Safe and Drug-Free Schools National Programs.
(b) Of the amount available for Safe and Drug-Free National
Programs, not less than $25,000,000 shall be for competitive
grants to local educational agencies to address youth
violence and related issues.
(c) The competition under subsection (b) shall be limited
to local educational agencies that operate schools currently
identified as persistently dangerous under section 9532 of
the Elementary and Secondary Education Act of 1965.
Sec. 3604. The provision in the first proviso under the
heading ``Rehabilitation Services and Disability Research''
in the Department of Education Appropriations Act, 2006,
relating to alternative financing programs under section
4(b)(2)(D) of the Assistive Technology Act of 1998 shall not
apply to funds appropriated by the Continuing Appropriations
Resolution, 2007.
(transfer of funds)
Sec. 3605. Notwithstanding sections 20639 and 20640 of the
Continuing Appropriations Resolution, 2007, as amended by
section 2 of the Revised Continuing Appropriations
Resolution, 2007 (Public Law 110-5), the Chief Executive
Officer of the Corporation for National and Community Service
may transfer an amount of not more than $1,360,000 from the
account under the heading ``National and Community Service
Programs, Operating Expenses'' under the heading
``Corporation for National and Community Service'', to the
account under the heading ``Salaries and Expenses'' under the
heading ``Corporation for National and Community Service''.
Sec. 3606. Section 1310.12(a) of title 45 of the Code of
Federal Regulations (October 1, 2004) shall be effective 30
days after enactment of this Act except that any vehicles in
use to transport Head Start children as of January 1, 2007,
shall not be subject to a requirement under that part
regarding rear emergency exit doors for two years after the
date of enactment.
The Secretary of Health and Human Services shall revise the
allowable alternate vehicle standards described in that part
1310 (or any corresponding similar regulation or ruling) to
exempt from Federal seat spacing requirements and supporting
seating requirements related to compartmentalization any
vehicle used to transport children for a Head Start program
if the vehicle meets federal motor vehicle safety standards
for seating systems, occupant crash protection, seat belt
assemblies, and child restraint anchorage systems consistent
with that part 1310 (or any corresponding similar regulation
or ruling). Such revision shall be made in a manner
consistent with the findings of the National Highway Traffic
Safety Administration, pursuant to its study on occupant
protection on Head Start transit vehicles, related to the
Government Accountability Office report GAO-06-767R.
(including rescission)
Sec. 3607. (a) From the amounts made available by the
Continuing Appropriations Resolution, 2007 (Public Law 109-
289, as amended by the Revised Continuing Appropriations
Resolution, 2007 (Public Law 110-5)) for the Office of the
Secretary, General Departmental Management under the
Department of Health and Human Services, $1,000,000 are
rescinded.
(b) For the activities carried out by the Secretary of
Education under section 3(a) of Public Law 108-406 (42 U.S.C.
15001 note), $1,000,000.
(including RESCISSION)
Sec. 3608. (a) From the amounts made available by the
Continuing Appropriations Resolution, 2007 for ``Department
of Education, Student Aid Administration'', $2,000,000 are
rescinded.
(b) For an additional amount for ``Department of Education,
Higher Education'' under part B of title VII of the Higher
Education Act of 1965 which shall be used to make a grant to
the University of Vermont for the Educational Excellence
Program, $2,000,000.
Sec. 3609. Section 1820 of the Social Security Act (42
U.S.C. 1395i-4) is amended--
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Delta Health Initiative.--
``(1) In general.--The Secretary is authorized to award a
grant to the Delta Health Alliance, a nonprofit alliance of
academic institutions in the Mississippi Delta region, to
solicit and fund proposals from local governments, hospitals,
health care clinics, academic institutions, and rural public
health-related entities and organizations for research
development, educational programs, health care services, job
training, planning, construction, and the equipment of public
health-related facilities in the Mississippi Delta region.
``(2) Federal interest in property.--With respect to funds
used under this subsection for construction or alteration of
property, the Federal interest in the property shall last for
a period of 1 year following completion or until the Federal
Government is compensated for its proportionate interest in
the property if the property use changes or the property is
transferred or sold, whichever time period is less. At the
conclusion of such period, the Notice of Federal Interest in
such property shall be removed.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary
to carry out this subsection in fiscal year 2007 and in each
of the five succeeding fiscal years.''.
Sec. 3610. Not withstanding any other provision of this
Act, section 3608(b) of this Act shall not take effect.
CHAPTER 7
GENERAL PROVISIONS--THIS CHAPTER
Sec. 3701. Section 2(c) of the Legislative Branch
Appropriations Act, 1993 (2 U.S.C. 121d(c)) is amended by
adding at the end the following:
``(3) The Secretary of the Senate may transfer from the
fund to the Senate Employee Child Care Center proceeds from
the sale of holiday ornaments by the Senate Gift Shop for the
purpose of funding necessary activities and expenses of the
Center, including scholarships, educational supplies, and
equipment.''.
(including rescission)
Sec. 3702. (a) Of the funds provided for the ``Capitol
Guide Service and Special Services Office'' in section
20703(a) of the Continuing Appropriations Resolution, 2007
(as added by section 2 of the Revised Continuing
Appropriations Resolution, 2007 (Public Law 110-5)),
$3,500,000 are rescinded.
(b) For an additional amount for ``Capitol Guide Service
and Special Services Office'', $3,500,000, to remain
available until September 30, 2008.
CHAPTER 8
GENERAL PROVISION--THIS CHAPTER
Sec. 3801. Notwithstanding any other provision of law,
appropriations made by Public Law 110-5, or any other Act,
which the Secretary of Veterans Affairs contributes to the
Department of Defense/Department of Veterans Affairs Health
Care Sharing Incentive Fund under the authority of section
8111(d) of title 38, United States Code, shall remain
available until expended for any purpose authorized by
section 8111 of title 38, United States Code.
CHAPTER 9
GENERAL PROVISIONS--THIS CHAPTER
CONSULTATION REQUIREMENT
Sec. 3901. Of the funds provided in the Revised Continuing
Appropriations Resolution, 2007 (Public Law 110-5) for the
United States-China Economic and Security Review Commission,
$1,000,000 shall be available for obligation only in
accordance with a spending plan submitted to and approved by
the Committees on Appropriations which addresses the
recommendations of the Government Accountability Office's
audit of the Commission.
TECHNICAL AMENDMENT
Sec. 3902. (a) Notwithstanding any other provision of law,
subsection (c) under the heading ``Assistance for the
Independent States of the Former Soviet Union'' in Public Law
109-102, shall not apply to funds appropriated by the
Continuing Appropriations Resolution, 2007 (Public Law 109-
289, division B) as amended by Public Laws 109-369, 109-383,
and 110-5.
(b) Section 534(k) of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2006
(Public Law 109-102) is amended, in the second proviso, by
inserting after ``subsection (b) of that section'' the
following: ``and the requirement that a majority of the
members of the board of directors be United States citizens
provided in subsection (d)(3)(B) of that section''.
(c) Subject to section 101(c)(2) of the Continuing
Appropriations Resolution, 2007 (division B of Public Law
109-289, as amended by Public Law 110-5), the amount of funds
appropriated for ``Foreign Military Financing Program''
pursuant to such Resolution shall be construed to be the
total of the amount appropriated for such program by section
20401 of that Resolution and the amount made available for
such program by section 591 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2006
(Public Law 109-102) which is made applicable to the fiscal
year 2007 by the provisions of such Resolution.
CHAPTER 10
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Federal Housing Enterprise Oversight
Salaries and Expenses
(including transfer of funds)
For an additional amount to carry out the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992,
$4,800,000, to remain available until expended, to be derived
from the Federal Housing Enterprises Oversight Fund and to be
subject to the same terms and conditions pertaining to funds
provided under this heading in Public Law 109-115: Provided,
That not to exceed the total amount provided for these
activities for fiscal year 2007 shall be available from the
general fund of the Treasury to the extent necessary to incur
obligations and make expenditures pending the receipt of
collections to the Fund: Provided further, That the general
fund amount shall be reduced as collections are received
during the fiscal year so as to result in a final
appropriation from the general fund estimated at not more
than $0.
GENERAL PROVISIONS--THIS CHAPTER
Sec. 4001. Hereafter, funds limited or appropriated for the
Department of Transportation may be obligated or expended to
grant authority to a Mexican motor carrier to operate beyond
United States municipalities and commercial zones on the
United States-Mexico border only to the extent that--
(1) granting such authority is first tested as part of a
pilot program;
(2) such pilot program complies with the requirements of
section 350 of Public Law 107-87 and the requirements of
section 31315(c) of title 49, United States Code, related to
pilot programs; and
(3) simultaneous and comparable authority to operate within
Mexico is made available to motor carriers domiciled in the
United States.
Sec. 4002. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-
[[Page S4113]]
5) is amended by adding after the second proviso: ``:
Provided further, That paragraph (2) under such heading in
Public Law 109-115 (119 Stat. 2441) shall be funded at
$149,300,000, but additional section 8 tenant protection
rental assistance costs may be funded in 2007 by using
unobligated balances, notwithstanding the purposes for which
such amounts were appropriated, including recaptures and
carryover, remaining from funds appropriated to the
Department of Housing and Urban Development under this
heading, the heading ``Annual Contributions for Assisted
Housing'', the heading ``Housing Certificate Fund'', and the
heading ``Project-Based Rental Assistance'' for fiscal year
2006 and prior fiscal years: Provided further, That paragraph
(3) under such heading in Public Law 109-115 (119 Stat. 2441)
shall be funded at $47,500,000: Provided further, That
paragraph (4) under such heading in Public Law 109-115 (119
Stat. 2441) shall be funded at $5,900,000: Provided further,
That paragraph (5) under such heading in Public Law 109-115
(119 Stat. 2441) shall be funded at $1,281,100,000, of which
$1,251,100,000 shall be allocated for the calendar year 2007
funding cycle on a pro rata basis to public housing agencies
based on the amount public housing agencies were eligible to
receive in calendar year 2006, and of which up to $30,000,000
shall be available to the Secretary to allocate to public
housing agencies that need additional funds to administer
their section 8 programs, with up to $20,000,000 to be for
fees associated with section 8 tenant protection rental
assistance''.
Sec. 4003. The dates for subsidy reductions and
demonstrations for discontinuance of reductions in operating
subsidy under the new operating fund formula, pursuant to HUD
regulations at 24 CFR 990.230, shall be moved forward so that
the first demonstration date for asset management compliance
shall be September 1, 2007, and reductions in subsidy for
calendar year 2007 shall be limited to the 5 percent amount
referred to in such regulations. Any public housing agency
that has filed information to demonstrate compliance on or
prior to April 15, 2007 shall be permitted to re-file the
same or different information to demonstrate such compliance
on or before September 1, 2007.
CHAPTER 11
GENERAL PROVISIONS--THIS ACT
AVAILABILITY OF FUNDS
Sec. 4101. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.
EMERGENCY DESIGNATION FOR TITLE I
Sec. 4102. Amounts provided in title I of this Act are
designated as emergency requirements pursuant to section 402
of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.
EMERGENCY DESIGNATION FOR TITLE II
Sec. 4103. Amounts provided in title II of this Act are
designated as emergency requirements pursuant to section 402
of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.
TITLE IV--EMERGENCY FARM RELIEF
SEC. 401. SHORT TITLE.
This title may be cited as the ``Emergency Farm Relief Act
of 2007''.
SEC. 402. DEFINITIONS.
In this title:
(1) Additional coverage.--The term ``additional coverage''
has the meaning given the term in section 502(b)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1502(b)(1)).
(2) Applicable crop.--The term ``applicable crop'' means 1
or more crops planted, or prevented from being planted,
during, as elected by the producers on a farm, 1 of--
(A) the 2005 crop year;
(B) the 2006 crop year; or
(C) that part of the 2007 crop year that takes place before
the end of the applicable period.
(3) Applicable period.--The term ``applicable period''
means the period beginning on January 1, 2005 and ending on
February 28, 2007.
(4) Disaster county.--The term ``disaster county'' means--
(A) a county included in the geographic area covered by a
natural disaster declaration; and
(B) each county contiguous to a county described in
subparagraph (A).
(5) Hurricane-affected county.--The term ``hurricane-
affected county'' means--
(A) a county included in the geographic area covered by a
natural disaster declaration related to Hurricane Katrina,
Hurricane Rita, Hurricane Wilma, or a related condition; and
(B) each county contiguous to a county described in
subparagraph (A).
(6) Insurable commodity.--The term ``insurable commodity''
means an agricultural commodity (excluding livestock) for
which the producers on a farm are eligible to obtain a policy
or plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
(7) Livestock.--The term ``livestock'' includes--
(A) cattle (including dairy cattle);
(B) bison;
(C) poultry;
(D) sheep;
(E) swine; and
(F) other livestock, as determined by the Secretary.
(8) Natural disaster declaration.--The term ``natural
disaster declaration'' means a natural disaster declared by
the Secretary during the applicable period under section
321(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961(a)).
(9) Noninsurable commodity.--The term ``noninsurable
commodity'' means a crop for which the producers on a farm
are eligible to obtain assistance under section 196 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
Subtitle A--Agricultural Production Losses
SEC. 411. CROP DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to
make emergency financial assistance authorized under this
section available to producers on a farm that have incurred
qualifying losses described in subsection (c).
(b) Administration.--
(1) In general.--Except as provided in paragraph (2), the
Secretary shall make assistance available under this section
in the same manner as provided under section 815 of the
Agriculture, Rural Development, Food and Drug Administration
and Related Agencies Appropriations Act, 2001 (Public Law
106-387; 114 Stat. 1549A-55), including using the same loss
thresholds for quantity and economic losses as were used in
administering that section, except that the payment rate
shall be 55 percent of the established price, instead of 65
percent.
(2) Noninsured producers.--For producers on a farm that
were eligible to acquire crop insurance for the applicable
production loss and failed to do so or failed to submit an
application for the noninsured assistance program for the
loss, the Secretary shall make assistance in accordance with
paragraph (1), except that the payment rate shall be 20
percent of the established price, instead of 50 percent.
(c) Qualifying Losses.--Assistance under this section shall
be made available to producers on farms, other than producers
of sugar beets, that incurred qualifying quantity or quality
losses for the applicable crop due to damaging weather or any
related condition (including losses due to crop diseases,
insects, and delayed harvest), as determined by the
Secretary.
(d) Quality Losses.--
(1) In general.--In addition to any payment received under
subsection (b), the Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to
make payments to producers on a farm described in subsection
(a) that incurred a quality loss for the applicable crop of a
commodity in an amount equal to the product obtained by
multiplying--
(A) the payment quantity determined under paragraph (2);
(B)(i) in the case of an insurable commodity, the coverage
level elected by the insured under the policy or plan of
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.); or
(ii) in the case of a noninsurable commodity, the
applicable coverage level for the payment quantity determined
under paragraph (2); by
(C) 55 percent of the payment rate determined under
paragraph (3).
(2) Payment quantity.--For the purpose of paragraph (1)(A),
the payment quantity for quality losses for a crop of a
commodity on a farm shall equal the lesser of--
(A) the actual production of the crop affected by a quality
loss of the commodity on the farm; or
(B)(i) in the case of an insurable commodity, the actual
production history for the commodity by the producers on the
farm under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.); or
(ii) in the case of a noninsurable commodity, the
established yield for the crop for the producers on the farm
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
(3) Payment rate.--
(A) In general.--For the purpose of paragraph (1)(B), the
payment rate for quality losses for a crop of a commodity on
a farm shall be equal to the difference between (as
determined by the applicable State committee of the Farm
Service Agency)--
(i) the per unit market value that the units of the crop
affected by the quality loss would have had if the crop had
not suffered a quality loss; and
(ii) the per unit market value of the units of the crop
affected by the quality loss.
(B) Factors.--In determining the payment rate for quality
losses for a crop of a commodity on a farm, the applicable
State committee of the Farm Service Agency shall take into
account--
(i) the average local market quality discounts that
purchasers applied to the commodity during the first 2 months
following the normal harvest period for the commodity;
(ii) the loan rate and repayment rate established for the
commodity under the marketing loan program established for
the commodity under subtitle B of title I of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7931 et
seq.);
(iii) the market value of the commodity if sold into a
secondary market; and
(iv) other factors determined appropriate by the committee.
(4) Eligibility.--
(A) In general.--For producers on a farm to be eligible to
obtain a payment for a quality loss for a crop under this
subsection--
(i) the amount obtained by multiplying the per unit loss
determined under paragraph (1) by the number of units
affected by the quality loss shall be reduced by the amount
of any indemnification received by the producers on the farm
for quality loss adjustment for the commodity under a policy
or plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.); and
(ii) the remainder shall be at least 25 percent of the
value that all affected production of the crop would have had
if the crop had not suffered a quality loss.
(B) Ineligibility.--If the amount of a quality loss payment
for a commodity for the producers on a farm determined under
this paragraph is
[[Page S4114]]
equal to or less than zero, the producers on the farm shall
be ineligible for assistance for the commodity under this
subsection.
(5) Eligible production.--The Secretary shall carry out
this subsection in a fair and equitable manner for all
eligible production, including the production of fruits and
vegetables, other specialty crops, and field crops.
(e) Election of Crop Year.--If a producer incurred
qualifying crop losses in more than 1 of the crop years
during the applicable period, the producers on a farm shall
elect to receive assistance under this section for losses
incurred in only 1 of the crop years.
(f) Payment Limitation.--
(1) Limitation.--Assistance provided under this section to
the producers on a farm for losses to a crop, together with
the amounts specified in paragraph (2) applicable to the same
crop, may not exceed 95 percent of what the value of the crop
would have been in the absence of the losses, as estimated by
the Secretary.
(2) Other payments.--In applying the limitation in
paragraph (1), the Secretary shall include the following:
(A) Any crop insurance payment made under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or payment under
section 196 of the Federal Agricultural Improvement and
Reform Act of 1996 (7 U.S.C. 7333) that the producers on the
farm receive for losses to the same crop.
(B) The value of the crop that was not lost (if any), as
estimated by the Secretary.
(g) Timing.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make payments to producers on a farm for a crop under
this section not later than 60 days after the date the
producers on the farm submit to the Secretary a completed
application for the payments.
(2) Interest.--If the Secretary does not make payments to
the producers on a farm by the date described in paragraph
(1), the Secretary shall pay to the producers on a farm
interest on the payments at a rate equal to the current (as
of the sign-up deadline established by the Secretary) market
yield on outstanding, marketable obligations of the United
States with maturities of 30 years.
SEC. 412. DAIRY ASSISTANCE.
The Secretary shall use $95,000,000 of funds of the
Commodity Credit Corporation to make payments to dairy
producers for dairy production losses in disaster counties.
SEC. 413. MILK INCOME LOSS CONTRACT PROGRAM.
Section 1502(c)(3) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7982(c)(3)) is amended--
(1) in subparagraph (A), by adding ``and'' at the end;
(2) in subparagraph (B), by striking ``August'' and all
that follows through the end and inserting ``September 30,
2007, 34 percent.''; and
(3) by striking subparagraph (C).
SEC. 414. LIVESTOCK ASSISTANCE.
(a) Livestock Compensation Program.--
(1) Use of commodity credit corporation funds.--Effective
beginning on the date of enactment of this Act, the Secretary
shall use funds of the Commodity Credit Corporation to carry
out the 2002 Livestock Compensation Program announced by the
Secretary on October 10, 2002 (67 Fed. Reg. 63070), to
provide compensation for livestock losses during the
applicable period for losses (including losses due to
blizzards that began in calendar year 2006 and continued in
January 2007) due to a disaster, as determined by the
Secretary, except that the payment rate shall be 80 percent
of the payment rate established for the 2002 Livestock
Compensation Program.
(2) Eligible applicants.--In carrying out the program
described in paragraph (1), the Secretary shall provide
assistance to any applicant for livestock losses during the
applicable period that--
(A)(i) conducts a livestock operation that is located in a
disaster county, including any applicant conducting a
livestock operation with eligible livestock (within the
meaning of the livestock assistance program under section
101(b) of division B of Public Law 108-324 (118 Stat. 1234));
or
(ii) produces an animal described in section 10806(a)(1) of
the Farm Security and Rural Investment Act of 2002 (21 U.S.C.
321d(a)(1));
(B) demonstrates to the Secretary that the applicant
suffered a material loss of pasture or hay production, or
experienced substantially increased feed costs, due to
damaging weather or a related condition during the calendar
year, as determined by the Secretary; and
(C) meets all other eligibility requirements established by
the Secretary for the program.
(3) Mitigation.--In determining the eligibility for or
amount of payments for which a producer is eligible under the
livestock compensation program, the Secretary shall not
penalize a producer that takes actions (recognizing disaster
conditions) that reduce the average number of livestock the
producer owned for grazing during the production year for
which assistance is being provided.
(4) Payments for reduction in grazing on federal land.--
(A) In general.--In carrying out this subsection, the
Secretary shall make payments to livestock producers that are
in proportion to any reduction during calendar year 2007 in
grazing on Federal land in a disaster county leased by the
producers a result of actions described in subparagraph (B).
(B) Federal actions.--Actions referred to in subparagraph
(A) are actions taken during calendar year 2007 by the Bureau
of Land Management or other Federal agency to restrict or
prohibit grazing otherwise allowed under the terms of the
lease of the producers in order to expedite the recovery of
the Federal land from drought, wildfire, or other natural
disaster declared by the Secretary during the applicable
period.
(5) Limitation.--The Secretary shall ensure, to the maximum
extent practicable, that producers on a farm do not receive
duplicative payments under this subsection and another
Federal program with respect to any loss.
(b) Livestock Indemnity Payments.--
(1) In general.--The Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to
make livestock indemnity payments to producers on farms that
have incurred livestock losses during the applicable period
(including losses due to blizzards that began in calendar
year 2006 and continued in January 2007) due to a disaster,
as determined by the Secretary, including losses due to
hurricanes, floods, anthrax, wildfires, and extreme heat.
(2) Payment rates.--Indemnity payments to a producer on a
farm under paragraph (1) shall be made at a rate of not less
than 30 percent of the market value of the applicable
livestock on the day before the date of death of the
livestock, as determined by the Secretary.
(c) Ewe Lamb Replacement and Retention.--
(1) In general.--The Secretary shall use $13,000,000 of
funds of the Commodity Credit Corporation to make payments to
producers located in disaster counties under the Ewe Lamb
Replacement and Retention Payment Program under part 784 of
title 7, Code of Federal Regulations (or a successor
regulation) for each qualifying ewe lamb retained or
purchased during the period beginning on January 1, 2006, and
ending on December 31, 2006, by the producers.
(2) Ineligibility for other assistance.--A producer that
receives assistance under this subsection shall not be
eligible to receive assistance under subsection (a).
(d) Election of Production Year.--If a producer incurred
qualifying production losses in more than one of the
production years, the producers on a farm shall elect to
receive assistance under this section in only one of the
production years.
(e) Exception.--Notwithstanding any other provision of this
section, livestock producers on a farm shall be eligible to
receive assistance under subsection (a) or livestock
indemnity payments under subsection (b) if the producers on a
farm--
(1) have livestock operations in a county included in the
geographic area covered by a major disaster or emergency
designated by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.) due to blizzards, ice storms, or other winter-
related causes during the period of December 2006 through
January 2007; and
(2) meet all eligibility requirements for the assistance or
payments other than the requirements relating to disaster
declarations by the Secretary under subsections (a) and
(b)(1).
SEC. 415. FLOODED CROP AND GRAZING LAND.
(a) In General.--The Secretary shall compensate eligible
owners of flooded crop and grazing land in the State of North
Dakota.
(b) Eligibility.--
(1) In general.--To be eligible to receive compensation
under this section, an owner shall own land described in
subsection (a) that, during the 2 crop years preceding
receipt of compensation, was rendered incapable of use for
the production of an agricultural commodity or for grazing
purposes (in a manner consistent with the historical use of
the land) as the result of flooding, as determined by the
Secretary.
(2) Inclusions.--Land described in paragraph (1) shall
include--
(A) land that has been flooded;
(B) land that has been rendered inaccessible due to
flooding; and
(C) a reasonable buffer strip adjoining the flooded land,
as determined by the Secretary.
(3) Administration.--The Secretary may establish--
(A) reasonable minimum acreage levels for individual
parcels of land for which owners may receive compensation
under this section; and
(B) the location and area of adjoining flooded land for
which owners may receive compensation under this section.
(c) Sign-up.--The Secretary shall establish a sign-up
program for eligible owners to apply for compensation from
the Secretary under this section.
(d) Compensation Payments.--
(1) In general.--Subject to paragraphs (2) and (3), the
rate of an annual compensation payment under this section
shall be equal to 90 percent of the average annual per acre
rental payment rate (at the time of entry into the contract)
for comparable crop or grazing land that has not been flooded
and remains in production in the county where the flooded
land is located, as determined by the Secretary.
(2) Reduction.--An annual compensation payment under this
section shall be reduced by the amount of any conservation
program rental payments or Federal agricultural commodity
program payments received by the owner for the land during
any crop year for which compensation is received under this
section.
(3) Exclusion.--During any year in which an owner receives
compensation for flooded land under this section, the owner
shall not be eligible to participate in or receive benefits
for the flooded land under--
(A) the Federal crop insurance program established under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
(B) the noninsured crop assistance program established
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333); or
(C) any Federal agricultural crop disaster assistance
program.
(e) Relationship to Agricultural Commodity Programs.--The
Secretary, by regulation, shall provide for the preservation
of cropland base, allotment history, and payment
[[Page S4115]]
yields applicable to land described in subsection (a) that
was rendered incapable of use for the production of an
agricultural commodity or for grazing purposes as the result
of flooding.
(f) Use of Land.--
(1) In general.--An owner that receives compensation under
this section for flooded land shall take such actions as are
necessary to not degrade any wildlife habitat on the land
that has naturally developed as a result of the flooding.
(2) Recreational activities.--To encourage owners that
receive compensation for flooded land to allow public access
to and use of the land for recreational activities, as
determined by the Secretary, the Secretary may--
(A) offer an eligible owner additional compensation; and
(B) provide compensation for additional acreage under this
section.
(g) Funding.--
(1) In general.--The Secretary shall use $6,000,000 of
funds of the Commodity Credit Corporation to carry out this
section.
(2) Pro-rated payments.--In a case in which the amount made
available under paragraph (1) for a fiscal year is
insufficient to compensate all eligible owners under this
section, the Secretary shall pro-rate payments for that
fiscal year on a per acre basis.
SEC. 416. SUGAR BEET AND SUGAR CANE DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use $24,000,000 of
funds of the Commodity Credit Corporation to provide
assistance to sugar beet producers that suffered production
losses (including quality losses) for the applicable crop.
(b) Requirement.--The Secretary shall make payments under
subsection (a) in the same manner as payments were made under
section 208 of the Agricultural Assistance Act of 2003
(Public Law 108-7; 117 Stat. 544), including using the same
indemnity benefits as were used in carrying out that section.
(c) Hawaii.--The Secretary shall use $3,000,000 of funds of
the Commodity Credit Corporation to assist sugarcane growers
in Hawaii by making a payment in that amount to an
agricultural transportation cooperative in Hawaii, the
members of which are eligible to obtain a loan under section
156(a) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272(a)).
(d) Election of Crop Year.--If a producer incurred
qualifying crop losses in more than one of the crop years
during the applicable period, the producers on a farm shall
elect to receive assistance under this section for losses
incurred in only one of the crop years.
SEC. 417. NONINSURED CROP ASSISTANCE PROGRAM.
Section 196(c) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333(c)) is amended by adding at
the end the following:
``(5) Loss assessment for grazing.--The Secretary shall
permit the use of 1 claims adjustor certified by the
Secretary to assess the quantity of loss on the acreage or
allotment of a producer devoted to grazing for livestock
under this section.''.
SEC. 418. REDUCTION IN PAYMENTS.
The amount of any payment for which a producer is eligible
under this subtitle shall be reduced by any amount received
by the producer for the same loss or any similar loss under--
(1) the Department of Defense, Emergency Supplemental
Appropriations to Address Hurricanes in the Gulf of Mexico,
and Pandemic Influenza Act, 2006 (Public Law 109-148; 119
Stat. 2680);
(2) an agricultural disaster assistance provision contained
in the announcement of the Secretary on January 26, 2006, or
August 29, 2006;
(3) the Emergency Supplemental Appropriations Act for
Defense, the Global War on Terror, and Hurricane Recovery,
2006 (Public Law 109-234; 120 Stat. 418); or
(4) the Livestock Assistance Grant Program announced by the
Secretary on August 29, 2006.
Subtitle B--Small Business Economic Loss Grant Program
SEC. 421. SMALL BUSINESS ECONOMIC LOSS GRANT PROGRAM.
(a) Definition of Qualified State.--In this section, the
term ``qualified State'' means a State in which at least 50
percent of the counties of the State were declared to be
primary agricultural disaster areas by the Secretary during
the applicable period.
(b) Grants to Qualified States.--
(1) In general.--The Secretary shall use $100,000,000 of
funds of the Commodity Credit Corporation to make grants to
State departments of agriculture or comparable State agencies
in qualified States.
(2) Amount.--
(A) In general.--Subject to subparagraph (B), the Secretary
shall allocate grants among qualified States described in
paragraph (1) based on the average value of agricultural
sector production in the qualified State, determined as a
percentage of the gross domestic product of the qualified
State.
(B) Minimum amount.--The minimum amount of a grant under
this subsection shall be $500,000.
(3) Requirement.--To be eligible to receive a grant under
this subsection, a qualified State shall agree to carry out
an expedited disaster assistance program to provide direct
payments to qualified small businesses in accordance with
subsection (c).
(c) Direct Payments to Qualified Small Businesses.--
(1) In general.--In carrying out an expedited disaster
assistance program described in subsection (b)(3), a
qualified State shall provide direct payments to eligible
small businesses in the qualified State that suffered
material economic losses during the applicable period as a
direct result of weather-related agricultural losses to the
crop or livestock production sectors of the qualified State,
as determined by the Secretary.
(2) Eligibility.--
(A) In general.--To be eligible to receive a direct payment
under paragraph (1), a small business shall--
(i) have less than $15,000,000 in average annual gross
income from all business activities, at least 75 percent of
which shall be directly related to production agriculture or
agriculture support industries, as determined by the
Secretary;
(ii) verify the amount of economic loss attributable to
weather-related agricultural losses using such documentation
as the Secretary and the head of the qualified State agency
may require;
(iii) have suffered losses attributable to weather-related
agricultural disasters that equal at least 50 percent of the
total economic loss of the small business for each year a
grant is requested; and
(iv) demonstrate that the grant will materially improve the
likelihood the business will--
(I) recover from the disaster; and
(II) continue to service and support production
agriculture.
(B) Emergency grants to assist low-income migrant and
seasonal farmworkers.--
(i) Funds made available by this subtitle may be used to
carry out assistance programs in States that are consistent
with the purpose and intent of the program authorized at
section 2281 of the Food, Agriculture, Conservation and Trade
Act of 1990 (42 U.S.C. 5177a).
(ii) In carrying out this subparagraph, a qualified State
may waive the gross income requirement at subparagraph (A)(i)
of this paragraph.
(3) Requirements.--A direct payment to small business under
this subsection shall--
(A) be limited to not more than 2 years of documented
losses; and
(B) be in an amount of not more than 75 percent of the
documented average economic loss attributable to weather-
related agriculture disasters for each eligible year in the
qualified State.
(4) Insufficient funding.--If the grant funds received by a
qualified State agency under subsection (b) are insufficient
to fund the direct payments of the qualified State agency
under this subsection, the qualified State agency may apply a
proportional reduction to all of the direct payments.
Subtitle C--Forestry
SEC. 431. TREE ASSISTANCE PROGRAM.
(a) Definition of Tree.--In this section, the term ``tree''
includes--
(1) a tree (including a Christmas tree, ornamental tree,
nursery tree, and potted tree);
(2) a bush (including a shrub, nursery shrub, nursery bush,
ornamental bush, ornamental shrub, potted bush, and potted
shrub); and
(3) a vine (including a nursery vine and ornamental vine).
(b) Program.--Except as otherwise provided in this section,
the Secretary shall use such sums as are necessary of the
funds of the Commodity Credit Corporation to provide
assistance under the terms and conditions of the tree
assistance program established under subtitle C of title X of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8201 et seq.) to--
(1) producers who suffered tree losses in disaster
counties; and
(2) fruit and tree nut producers in disaster counties.
(c) Costs.--Funds made available under this section shall
also be made available to cover costs associated with tree
pruning, tree rehabilitation, and other appropriate tree-
related activities as determined by the Secretary.
(d) Scope of Assistance.--Assistance under this section
shall compensate for losses resulting from disasters during
the applicable period.
Subtitle D--Conservation
SEC. 441. EMERGENCY CONSERVATION PROGRAM.
The Secretary shall use an additional $35,000,000 of funds
of the Commodity Credit Corporation to carry out emergency
measures, including wildfire recovery efforts in Montana and
other States, identified by the Administrator of the Farm
Service Agency as of the date of enactment of this Act
through the emergency conservation program established under
title IV of the Agricultural Credit Act of 1978 (16 U.S.C.
2201 et seq.), of which $3,000,000 shall be to repair broken
irrigation pipelines and damaged and collapsed water tanks,
$1,000,000 to provide emergency loans for losses of
agricultural income, and $2,000,000 to repair ditch
irrigation systems in conjunction with the Presidential
declaration of a major disaster (FEMA-1664-DR), dated October
17, 2006, and related determinations issued under the
authority of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121-5206 (the Stafford
Act): Provided, That the Secretary may transfer a portion of
these funds to the Natural Resources Conservation Service, to
include Resource Conservation and Development councils.
SEC. 442. EMERGENCY WATERSHED PROTECTION PROGRAM.
The Secretary shall use an additional $50,000,000 of funds
of the Commodity Credit Corporation to carry out emergency
measures identified by the Chief of the Natural Resources
Conservation Service as of the date of enactment of this Act
through the emergency watershed protection program
established under section 403 of the Agricultural Credit Act
of 1978 (16 U.S.C. 2203).
SEC. 443. CONSERVATION SECURITY PROGRAM.
Section 20115 of Public Law 110-5 is amended by striking
``section 726'' and inserting in lieu thereof ``section 726;
section 741''.
[[Page S4116]]
Subtitle E--Farm Service Agency
SEC. 451. FUNDING FOR ADDITIONAL PERSONNEL AND ADMINISTRATIVE
SUPPORT.
The Secretary shall use $30,000,000 of funds of the
Commodity Credit Corporation--
(1) of which $9,000,000 shall be used to hire additional
County Farm Service Agency personnel to expedite the
implementation of, and delivery under, the agricultural
disaster and economic assistance programs under this title;
and
(2) to be used as the Secretary determines to be necessary
to carry out this and other agriculture and disaster
assistance programs.
Subtitle F--Miscellaneous
SEC. 461. CONTRACT WAIVER.
In carrying out this title and section 101(a)(5) of the
Emergency Supplemental Appropriations for Hurricane Disasters
Assistance Act, 2005 (Public Law 108-324; 118 Stat. 1233),
the Secretary shall not require participation in a crop
insurance pilot program relating to forage.
SEC. 462. INSECT INFESTATIONS.
(a) In General.--The Secretary, acting through the
Administrator of the Animal and Plant Health Inspection
Service, shall use not less than $20,000,000 of funds made
available from the Commodity Credit Corporation for the
Animal and Plant Health Inspection Service to survey and
control insect infestations in the States of Nevada, Idaho,
and Utah.
(b) Use of Funds.--Funds described in subsection (a) shall
be used in a manner that promotes cooperative efforts between
Federal programs (including the plant protection and
quarantine program of the Animal and Plant Health Inspection
Service) and State and local programs carried out, in whole
or in part, with Federal funds to fight insect outbreaks.
SEC. 463. FUNDING.
The Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to carry out
this title, to remain available until expended.
SEC. 464. REGULATIONS.
(a) In General.--The Secretary may promulgate such
regulations as are necessary to implement this title.
(b) Procedure.--The promulgation of the regulations and
administration of this title shall be made without regard
to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(c) Congressional Review of Agency Rulemaking.--In carrying
out this section, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
Subtitle G--Emergency Designation
SEC. 471. EMERGENCY DESIGNATION.
The amounts provided under this title are designated as an
emergency requirement pursuant to section 402 of H. Con. Res.
95 (109th Congress).
TITLE V--FAIR MINIMUM WAGE AND TAX RELIEF
Subtitle A--Fair Minimum Wage
SEC. 500. SHORT TITLE.
This subtitle may be cited as the ``Fair Minimum Wage Act
of 2007''.
SEC. 501. MINIMUM WAGE.
(a) In General.--Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to
read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.85 an hour, beginning on the 60th day after the
date of enactment of the Fair Minimum Wage Act of 2007;
``(B) $6.55 an hour, beginning 12 months after that 60th
day; and
``(C) $7.25 an hour, beginning 24 months after that 60th
day;''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect 60 days after the date of enactment of this
Act.
SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.
(a) In General.--Section 6 of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206) shall apply to the Commonwealth of
the Northern Mariana Islands.
(b) Transition.--Notwithstanding subsection (a), the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under section
6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.
Subtitle B--Small Business Tax Incentives
SEC. 510. SHORT TITLE; AMENDMENT OF CODE.
(a) Short Title.--This subtitle may be cited as the ``Small
Business and Work Opportunity Act of 2007''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this subtitle an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART I--SMALL BUSINESS TAX RELIEF PROVISIONS
Subpart A--General Provisions
SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL
BUSINESSES.
Section 179 (relating to election to expense certain
depreciable business assets) is amended by striking ``2010''
each place it appears and inserting ``2011''.
SEC. 512. EXTENSION AND MODIFICATION OF 15-YEAR STRAIGHT-LINE
COST RECOVERY FOR QUALIFIED LEASEHOLD
IMPROVEMENTS AND QUALIFIED RESTAURANT
IMPROVEMENTS; 15-YEAR STRAIGHT-LINE COST
RECOVERY FOR CERTAIN IMPROVEMENTS TO RETAIL
SPACE.
(a) Extension of Leasehold and Restaurant Improvements.--
(1) In general.--Clauses (iv) and (v) of section
168(e)(3)(E) (relating to 15-year property) are each amended
by striking ``January 1, 2008'' and inserting ``January 1,
2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2007.
(b) Modification of Treatment of Qualified Restaurant
Property as 15-Year Property for Purposes of Depreciation
Deduction.--
(1) Treatment to include new construction.--Paragraph (7)
of section 168(e) (relating to classification of property) is
amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building (or its structural components) or an improvement
to such building if more than 50 percent of such building's
square footage is devoted to preparation of, and seating for
on-premises consumption of, prepared meals.''.
(2) Effective date.--The amendment made by this subsection
shall apply to any property placed in service after the date
of the enactment of this Act, the original use of which
begins with the taxpayer after such date.
(c) Recovery Period for Depreciation of Certain
Improvements to Retail Space.--
(1) 15-year recovery period.--Section 168(e)(3)(E)
(relating to 15-year property) is amended by striking ``and''
at the end of clause (vii), by striking the period at the end
of clause (viii) and inserting ``, and'', and by adding at
the end the following new clause:
``(ix) any qualified retail improvement property placed in
service before January 1, 2009.''.
(2) Qualified retail improvement property.--Section 168(e)
is amended by adding at the end the following new paragraph:
``(8) Qualified retail improvement property.--
``(A) In general.--The term `qualified retail improvement
property' means any improvement to an interior portion of a
building which is nonresidential real property if--
``(i) such portion is open to the general public and is
used in the retail trade or business of selling tangible
personal property to the general public, and
``(ii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Improvements made by owner.--In the case of an
improvement made by the owner of such improvement, such
improvement shall be qualified retail improvement property
(if at all) only so long as such improvement is held by such
owner. Rules similar to the rules under paragraph (6)(B)
shall apply for purposes of the preceding sentence.
``(C) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
or
``(iv) the internal structural framework of the
building.''.
(3) Requirement to use straight line method.--Section
168(b)(3) is amended by adding at the end the following new
subparagraph:
``(I) Qualified retail improvement property described in
subsection (e)(8).''.
(4) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(viii) the following new item:
(E)(ix)...........................................................39''.
(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL
BUSINESS.
(a) Cash Accounting Permitted.--
(1) In general.--Section 446 (relating to general rule for
methods of accounting) is amended by adding at the end the
following new subsection:
``(g) Certain Small Business Taxpayers Permitted To Use
Cash Accounting Method Without Limitation.--
``(1) In general.--An eligible taxpayer shall not be
required to use an accrual method of accounting for any
taxable year.
``(2) Eligible taxpayer.--For purposes of this subsection,
a taxpayer is an eligible taxpayer with respect to any
taxable year if--
``(A) for each of the prior taxable years ending on or
after the date of the enactment of this subsection, the
taxpayer (or any predecessor) met the gross receipts test in
effect under section 448(c) for such taxable year, and
``(B) the taxpayer is not subject to section 447 or 448.''.
(2) Expansion of gross receipts test.--
(A) In general.--Paragraph (3) of section 448(b) (relating
to entities with gross receipts of not more than $5,000,000)
is amended to read as follows:
[[Page S4117]]
``(3) Entities meeting gross receipts test.--Paragraphs (1)
and (2) of subsection (a) shall not apply to any corporation
or partnership for any taxable year if, for each of the prior
taxable years ending on or after the date of the enactment of
the Small Business and Work Opportunity Act of 2007, the
entity (or any predecessor) met the gross receipts test in
effect under subsection (c) for such prior taxable year.''.
(B) Conforming amendments.--Section 448(c) of such Code is
amended--
(i) by striking ``$5,000,000'' in the heading thereof,
(ii) by striking ``$5,000,000'' each place it appears in
paragraph (1) and inserting ``$10,000,000'', and
(iii) by adding at the end the following new paragraph:
``(4) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, the dollar
amount contained in paragraph (1) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B) thereof.
``If any amount as adjusted under this subparagraph is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(b) Clarification of Inventory Rules for Small Business.--
(1) In general.--Section 471 (relating to general rule for
inventories) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Business Taxpayers Not Required To Use
Inventories.--
``(1) In general.--A qualified taxpayer shall not be
required to use inventories under this section for a taxable
year.
``(2) Treatment of taxpayers not using inventories.--If a
qualified taxpayer does not use inventories with respect to
any property for any taxable year beginning after the date of
the enactment of this subsection, such property shall be
treated as a material or supply which is not incidental.
``(3) Qualified taxpayer.--For purposes of this subsection,
the term `qualified taxpayer' means--
``(A) any eligible taxpayer (as defined in section
446(g)(2)), and
``(B) any taxpayer described in section 448(b)(3).''.
(2) Conforming amendments.--
(A) Subpart D of part II of subchapter E of chapter 1 is
amended by striking section 474.
(B) The table of sections for subpart D of part II of
subchapter E of chapter 1 is amended by striking the item
relating to section 474.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK
OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.
(a) Extension.--Section 51(c)(4)(B) (relating to
termination) is amended by striking ``2007'' and inserting
``2012''.
(b) Increase in Maximum Age for Designated Community
Residents.--
(1) In general.--Paragraph (5) of section 51(d) is amended
to read as follows:
``(5) Designated community residents.--
``(A) In general.--The term `designated community resident'
means any individual who is certified by the designated local
agency--
``(i) as having attained age 18 but not age 40 on the
hiring date, and
``(ii) as having his principal place of abode within an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(B) Individual must continue to reside in zone,
community, or county.--In the case of a designated community
resident, the term `qualified wages' shall not include wages
paid or incurred for services performed while the
individual's principal place of abode is outside an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(C) Rural renewal county.--For purposes of this
paragraph, the term `rural renewal county' means any county
which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
``(D) a designated community resident,''.
(c) Clarification of Treatment of Individuals Under
Individual Work Plans.--Subparagraph (B) of section 51(d)(6)
(relating to vocational rehabilitation referral) is amended
by striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) an individual work plan developed and implemented
by an employment network pursuant to subsection (g) of
section 1148 of the Social Security Act with respect to which
the requirements of such subsection are met.''.
(d) Treatment of Disabled Veterans Under the Work
Opportunity Tax Credit.--
(1) Disabled veterans treated as members of targeted
group.--
(A) In general.--Subparagraph (A) of section 51(d)(3)
(relating to qualified veteran) is amended by striking
``agency as being a member of a family'' and all that follows
and inserting ``agency as--
``(i) being a member of a family receiving assistance under
a food stamp program under the Food Stamp Act of 1977 for at
least a 3-month period ending during the 12-month period
ending on the hiring date, or
``(ii) entitled to compensation for a service-connected
disability incurred after September 10, 2001.''.
(B) Definitions.--Paragraph (3) of section 51(d) is amended
by adding at the end the following new subparagraph:
``(C) Other definitions.--For purposes of subparagraph (A),
the terms `compensation' and `service-connected' have the
meanings given such terms under section 101 of title 38,
United States Code.''.
(2) Increase in amount of wages taken into account for
disabled veterans.--Paragraph (3) of section 51(b) is
amended--
(A) by inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii))'' before the period at the end, and
(B) by striking ``ONLY FIRST $6,000 of'' in the heading and
inserting ``LIMITATION ON''.
(e) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
(a) Employment Taxes.--Chapter 25 (relating to general
provisions relating to employment taxes) is amended by adding
at the end the following new section:
``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) General Rules.--For purposes of the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer (and no other person shall be
treated as the employer) of any work site employee performing
services for any customer of such organization, but only with
respect to remuneration remitted by such organization to such
work site employee, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(b) Successor Employer Status.--For purposes of sections
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
``(1) a certified professional employer organization
entering into a service contract with a customer with respect
to a work site employee shall be treated as a successor
employer and the customer shall be treated as a predecessor
employer during the term of such service contract, and
``(2) a customer whose service contract with a certified
professional employer organization is terminated with respect
to a work site employee shall be treated as a successor
employer and the certified professional employer organization
shall be treated as a predecessor employer.
``(c) Liability of Certified Professional Employer
Organization.--Solely for purposes of its liability for the
taxes, and other obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer of any individual (other than a
work site employee or a person described in subsection (f))
who is performing services covered by a contract meeting the
requirements of section 7705(e)(2), but only with respect to
remuneration remitted by such organization to such
individual, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit specified in
paragraph (2)--
``(A) such credit with respect to a work site employee
performing services for the customer applies to the customer,
not the certified professional employer organization,
``(B) the customer, and not the certified professional
employer organization, shall take into account wages and
employment taxes--
``(i) paid by the certified professional employer
organization with respect to the work site employee, and
``(ii) for which the certified professional employer
organization receives payment from the customer, and
``(C) the certified professional employer organization
shall furnish the customer with any information necessary for
the customer to claim such credit.
``(2) Credits specified.--A credit is specified in this
paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing research activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer social
security taxes paid with respect to employee cash tips),
``(D) section 45C (clinical testing expenses for certain
drugs for rare diseases or conditions),
``(E) section 51 (work opportunity credit),
``(F) section 51A (temporary incentives for employing long-
term family assistance recipients),
``(G) section 1396 (empowerment zone employment credit),
``(H) 1400(d) (DC Zone employment credit),
``(I) Section 1400H (renewal community employment credit),
and
``(J) any other section as provided by the Secretary.
``(e) Special Rule for Related Party.--This section shall
not apply in the case of a customer which bears a
relationship to a certified professional employer
organization described in
[[Page S4118]]
section 267(b) or 707(b). For purposes of the preceding
sentence, such sections shall be applied by substituting `10
percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 (relating to definitions) is amended by adding at
the end the following new section:
``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS
DEFINED.
``(a) In General.--For purposes of this title, the term
`certified professional employer organization' means a person
who has been certified by the Secretary for purposes of
section 3511 as meeting the requirements of subsection (b).
``(b) General Requirements.--A person meets the
requirements of this subsection if such person--
``(1) demonstrates that such person (and any owner,
officer, and such other persons as may be specified in
regulations) meets such requirements as the Secretary shall
establish with respect to tax status, background, experience,
business location, and annual financial audits,
``(2) computes its taxable income using an accrual method
of accounting unless the Secretary approves another method,
``(3) agrees that it will satisfy the bond and independent
financial review requirements of subsection (c) on an ongoing
basis,
``(4) agrees that it will satisfy such reporting
obligations as may be imposed by the Secretary,
``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing within such
time as the Secretary may prescribe of any change that
materially affects whether it continues to meet the
requirements of this subsection.
``(c) Bond and Independent Financial Review Requirements.--
``(1) In general.--An organization meets the requirements
of this paragraph if such organization--
``(A) meets the bond requirements of paragraph (2), and
``(B) meets the independent financial review requirements
of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional employer
organization meets the requirements of this paragraph if the
organization has posted a bond for the payment of taxes under
subtitle C (in a form acceptable to the Secretary) in an
amount at least equal to the amount specified in subparagraph
(B).
``(B) Amount of bond.--For the period April 1 of any
calendar year through March 31 of the following calendar
year, the amount of the bond required is equal to the greater
of--
``(i) 5 percent of the organization's liability under
section 3511 for taxes imposed by subtitle C during the
preceding calendar year (but not to exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent review date, caused to be
prepared and provided to the Secretary (in such manner as the
Secretary may prescribe) an opinion of an independent
certified public accountant that the certified professional
employer organization's financial statements are presented
fairly in accordance with generally accepted accounting
principles, and
``(B) provides, not later than the last day of the second
month beginning after the end of each calendar quarter, to
the Secretary from an independent certified public accountant
an assertion regarding Federal employment tax payments and an
examination level attestation on such assertion.
Such assertion shall state that the organization has withheld
and made deposits of all taxes imposed by chapters 21, 22,
and 24 of the Internal Revenue Code in accordance with
regulations imposed by the Secretary for such calendar
quarter and such examination level attestation shall state
that such assertion is fairly stated, in all material
respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all professional
employer organizations that are members of a controlled group
within the meaning of sections 414(b) and (c) shall be
treated as a single organization.
``(5) Failure to file assertion and attestation.--If the
certified professional employer organization fails to file
the assertion and attestation required by paragraph (3) with
respect to any calendar quarter, then the requirements of
paragraph (3) with respect to such failure shall be treated
as not satisfied for the period beginning on the due date for
such attestation.
``(6) Review date.--For purposes of paragraph (3)(A), the
review date shall be 6 months after the completion of the
organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary
may suspend or revoke a certification of any person under
subsection (b) for purposes of section 3511 if the Secretary
determines that such person is not satisfying the
representations or requirements of subsections (b) or (c), or
fails to satisfy applicable accounting, reporting, payment,
or deposit requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee' means,
with respect to a certified professional employer
organization, an individual who--
``(A) performs services for a customer pursuant to a
contract which is between such customer and the certified
professional employer organization and which meets the
requirements of paragraph (2), and
``(B) performs services at a work site meeting the
requirements of paragraph (3).
``(2) Service contract requirements.--A contract meets the
requirements of this paragraph with respect to an individual
performing services for a customer if such contract is in
writing and provides that the certified professional employer
organization shall--
``(A) assume responsibility for payment of wages to such
individual, without regard to the receipt or adequacy of
payment from the customer for such services,
``(B) assume responsibility for reporting, withholding, and
paying any applicable taxes under subtitle C, with respect to
such individual's wages, without regard to the receipt or
adequacy of payment from the customer for such services,
``(C) assume responsibility for any employee benefits which
the service contract may require the organization to provide,
without regard to the receipt or adequacy of payment from the
customer for such services,
``(D) assume responsibility for hiring, firing, and
recruiting workers in addition to the customer's
responsibility for hiring, firing and recruiting workers,
``(E) maintain employee records relating to such
individual, and
``(F) agree to be treated as a certified professional
employer organization for purposes of section 3511 with
respect to such individual.
``(3) Work site coverage requirement.--The requirements of
this paragraph are met with respect to an individual if at
least 85 percent of the individuals performing services for
the customer at the work site where such individual performs
services are subject to 1 or more contracts with the
certified professional employer organization which meet the
requirements of paragraph (2) (but not taking into account
those individuals who are excluded employees within the
meaning of section 414(q)(5)).
``(f) Determination of Employment Status.--Except to the
extent necessary for purposes of section 3511, nothing in
this section shall be construed to affect the determination
of who is an employee or employer for purposes of this title.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer
Organizations.--If a certified professional employer
organization (as defined in section 7705), or a customer of
such organization, makes a contribution to the State's
unemployment fund with respect to a work site employee, such
organization shall be eligible for the credits available
under this section with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of paragraph (3) and
inserting ``; and'' and by inserting after paragraph (3) the
following new paragraph:
``(4) if the taxpayer is a certified professional employer
organization (as defined in section 7705) that is treated as
the employer under section 3511, such certified professional
employer organization is permitted to collect and remit, in
accordance with paragraphs (1), (2), and (3), contributions
during the taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and (3)'' and
inserting ``paragraphs (1), (2), (3), and (4)'', and
(ii) by striking ``paragraph (1), (2), or (3)'' and
inserting ``paragraph (1), (2), (3), or (4)''.
(3) Section 6053(c) (relating to reporting of tips) is
amended by adding at the end the following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the
case of a certified professional employer organization that
is treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified
professional employer organization shall furnish to the
customer any information necessary to complete such reporting
no later than such time as the Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:
``Sec. 3511. Certified professional employer organizations''.
(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:
``Sec. 7705. Certified professional employer organizations defined''.
(e) Reporting Requirements and Obligations.--The Secretary
of the Treasury shall develop such reporting and
recordkeeping rules, regulations, and procedures as the
Secretary determines necessary or appropriate to ensure
compliance with the amendments made by this section with
respect to entities applying for certification as certified
professional employer organizations or entities that have
been so certified. Such rules shall be designed in a manner
[[Page S4119]]
which streamlines, to the extent possible, the application of
requirements of such amendments, the exchange of information
between a certified professional employer organization and
its customers, and the reporting and recordkeeping
obligations of the certified professional employer
organization.
(f) User Fees.--Subsection (b) of section 7528 (relating to
Internal Revenue Service user fees) is amended by adding at
the end the following new paragraph:
``(4) Certified professional employer organizations.--The
fee charged under the program in connection with the
certification by the Secretary of a professional employer
organization under section 7705 shall not exceed $500.''.
(g) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply with respect to wages for services performed on or
after January 1 of the first calendar year beginning more
than 12 months after the date of the enactment of this Act.
(2) Certification program.--The Secretary of the Treasury
shall establish the certification program described in
section 7705(b) of the Internal Revenue Code of 1986, as
added by subsection (b), not later than 6 months before the
effective date determined under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the determination of who is an
employee or employer--
(1) for Federal tax purposes (other than the purposes set
forth in the amendments made by this section), or
(2) for purposes of any other provision of law.
SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT IN HIGH
OUT-MIGRATION COUNTIES.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(m) Rural Investment Property.--
``(1) In general.--For purposes of subsection (a), the
applicable recovery period for qualified rural investment
property shall be determined in accordance with the table
contained in paragraph (2) in lieu of the table contained in
subsection (c).
``(2) Applicable recovery period for rural investment
property.--For purposes of paragraph (1)--
The applicable
`` ``In the case of: recovery period is:
3-year property.........................................2 years
5-year property.........................................3 years
7-year property.........................................4 years
10-year property........................................6 years
15-year property........................................9 years
20-year property.......................................12 years
Nonresidential real property..........................22 years.
``(3) Qualified rural investment property defined.--For
purposes of this subsection--
``(A) In general.--The term `qualified rural investment
property' means property which is property described in the
table in paragraph (2) and which is--
``(i) used by the taxpayer predominantly in the active
conduct of a trade or business within a high out-migration
county,
``(ii) not used or located outside such county on a regular
basis,
``(iii) not acquired (directly or indirectly) by the
taxpayer from a person who is related to the taxpayer (within
the meaning of section 465(b)(3)(C)), and
``(iv) not property (or any portion thereof) placed in
service for purposes of operating any racetrack or other
facility used for gambling.
``(B) High out-migration county.--The term `high out-
migration county' means any county which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.
``(4) Termination.--This subsection shall not apply to
property placed in service after March 31, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act, the original use of which begins
with the taxpayer after such date.
SEC. 517. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED
SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.
Paragraph (2) of section 1400N(e) (relating to qualified
section 179 Gulf Opportunity Zone property) is amended--
(1) by striking ``this subsection, the term'' and inserting
``this subsection--
``(A) In general.--The term'', and
(2) by adding at the end the following new subparagraph:
``(B) Extension for certain property.--In the case of
property substantially all of the use of which is in one or
more specified portions of the GO Zone (as defined by
subsection (d)(6)), such term shall include section 179
property (as so defined) which is described in subsection
(d)(2), determined--
``(i) without regard to subsection (d)(6), and
``(ii) by substituting `2008' for `2007' in subparagraph
(A)(v) thereof.''.
Subpart B--Subchapter S Provisions
SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.
(a) In General.--Section 1362(d)(3) is amended by striking
subparagraphs (B), (C), (D), (E), and (F) and inserting the
following new subparagraph:
``(B) Passive investment income defined.--
``(i) In general.--Except as otherwise provided in this
subparagraph, the term `passive investment income' means
gross receipts derived from royalties, rents, dividends,
interest, and annuities.
``(ii) Exception for interest on notes from sales of
inventory.--The term `passive investment income' shall not
include interest on any obligation acquired in the ordinary
course of the corporation's trade or business from its sale
of property described in section 1221(a)(1).
``(iii) Treatment of certain lending or finance
companies.--If the S corporation meets the requirements of
section 542(c)(6) for the taxable year, the term `passive
investment income' shall not include gross receipts for the
taxable year which are derived directly from the active and
regular conduct of a lending or finance business (as defined
in section 542(d)(1)).
``(iv) Treatment of certain dividends.--If an S corporation
holds stock in a C corporation meeting the requirements of
section 1504(a)(2), the term `passive investment income'
shall not include dividends from such C corporation to the
extent such dividends are attributable to the earnings and
profits of such C corporation derived from the active conduct
of a trade or business.
``(v) Exception for banks, etc.--In the case of a bank (as
defined in section 581) or a depository institution holding
company (as defined in section 3(w)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(w)(1)), the term `passive
investment income' shall not include--
``(I) interest income earned by such bank or company, or
``(II) dividends on assets required to be held by such bank
or company, including stock in the Federal Reserve Bank, the
Federal Home Loan Bank, or the Federal Agricultural Mortgage
Bank or participation certificates issued by a Federal
Intermediate Credit Bank.''.
(b) Conforming Amendment.--Clause (i) of section
1042(c)(4)(A) is amended by striking ``section
1362(d)(3)(C)'' and inserting ``section 1362(d)(3)(B)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.
(a) In General.--Section 1361 (defining S corporation) is
amended by adding at the end the following new subsection:
``(f) Restricted Bank Director Stock.--
``(1) In general.--Restricted bank director stock shall not
be taken into account as outstanding stock of the S
corporation in applying this subchapter (other than section
1368(f)).
``(2) Restricted bank director stock.--For purposes of this
subsection, the term `restricted bank director stock' means
stock in a bank (as defined in section 581) or a depository
institution holding company (as defined in section 3(w)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), if
such stock--
``(A) is required to be held by an individual under
applicable Federal or State law in order to permit such
individual to serve as a director, and
``(B) is subject to an agreement with such bank or company
(or a corporation which controls (within the meaning of
section 368(c)) such bank or company) pursuant to which the
holder is required to sell back such stock (at the same price
as the individual acquired such stock) upon ceasing to hold
the office of director.
``(3) Cross reference.--
``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.
(b) Distributions.--Section 1368 (relating to
distributions) is amended by adding at the end the following
new subsection:
``(f) Restricted Bank Director Stock.--If a director
receives a distribution (not in part or full payment in
exchange for stock) from an S corporation with respect to any
restricted bank director stock (as defined in section
1361(f)), the amount of such distribution--
``(1) shall be includible in gross income of the director,
and
``(2) shall be deductible by the corporation for the
taxable year of such corporation in which or with which ends
the taxable year in which such amount in included in the
gross income of the director.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(2) Special rule for treatment as second class of stock.--
In the case of any taxable year beginning after December 31,
1996, restricted bank director stock (as defined in section
1361(f) of the Internal Revenue Code of 1986, as added by
this section) shall not be taken into account in determining
whether an S corporation has more than 1 class of stock.
SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.
(a) In General.--Section 1361, as amended by this Act, is
amended by adding at the end the following new subsection:
``(g) Special Rule for Bank Required To Change From the
Reserve Method of Accounting on Becoming S Corporation.--In
the case of a bank which changes from the reserve method of
accounting for bad debts described in section 585 or 593 for
its first taxable year for which an election under section
1362(a) is in effect, the bank may elect to take into account
any adjustments under section 481 by reason of such change
for the taxable year immediately preceding such first taxable
year.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.
(a) In General.--Subparagraph (C) of section 1361(b)(3)
(relating to treatment of terminations of qualified
subchapter S subsidiary status) is amended--
[[Page S4120]]
(1) by striking ``For purposes of this title,'' and
inserting the following:
``(i) In general.--For purposes of this title,'', and
(2) by inserting at the end the following new clause:
``(ii) Termination by reason of sale of stock.--If the
failure to meet the requirements of subparagraph (B) is by
reason of the sale of stock of a corporation which is a
qualified subchapter S subsidiary, the sale of such stock
shall be treated as if--
``(I) the sale were a sale of an undivided interest in the
assets of such corporation (based on the percentage of the
corporation's stock sold), and
``(II) the sale were followed by an acquisition by such
corporation of all of its assets (and the assumption by such
corporation of all of its liabilities) in a transaction to
which section 351 applies.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006 .
SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.
In the case of a corporation which is--
(1) described in section 1311(a)(1) of the Small Business
Job Protection Act of 1996, and
(2) not described in section 1311(a)(2) of such Act,
the amount of such corporation's accumulated earnings and
profits (for the first taxable year beginning after the date
of the enactment of this Act) shall be reduced by an amount
equal to the portion (if any) of such accumulated earnings
and profits which were accumulated in any taxable year
beginning before January 1, 1983, for which such corporation
was an electing small business corporation under subchapter S
of the Internal Revenue Code of 1986.
SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.
(a) No Look Through for Eligibility Purposes.--Clause (v)
of section 1361(c)(2)(B) is amended by adding at the end the
following new sentence: ``This clause shall not apply for
purposes of subsection (b)(1)(C).''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 527. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS
INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO
ACQUIRE S CORPORATION STOCK.
(a) In General.--Subparagraph (C) of section 641(c)(2)
(relating to modifications) is amended by inserting after
clause (iii) the following new clause:
``(iv) Any interest expense paid or accrued on indebtedness
incurred to acquire stock in an S corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
PART II--REVENUE PROVISIONS
SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.
(a) Leases to Foreign Entities.--Section 849(b) of the
American Jobs Creation Act of 2004 is amended by adding at
the end the following new paragraph:
``(5) Leases to foreign entities.--In the case of tax-
exempt use property leased to a tax-exempt entity which is a
foreign person or entity, the amendments made by this part
shall apply to taxable years beginning after December 31,
2006, with respect to leases entered into on or before March
12, 2004.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of the
American Jobs Creation Act of 2004.
SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.
(a) In General.--Section 7874(b) (relating to inverted
corporations treated as domestic corporations) is amended to
read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if such corporation would be
a surrogate foreign corporation if subsection (a)(2) were
applied by substituting `80 percent' for `60 percent'.
``(2) Special rule for certain transactions occurring after
march 20, 2002.--
``(A) In general.--If--
``(i) paragraph (1) does not apply to a foreign
corporation, but
``(ii) paragraph (1) would apply to such corporation if, in
addition to the substitution under paragraph (1), subsection
(a)(2) were applied by substituting `March 20, 2002' for
`March 4, 2003' each place it appears,
then paragraph (1) shall apply to such corporation but only
with respect to taxable years of such corporation beginning
after December 31, 2006.
``(B) Special rules.--Subject to such rules as the
Secretary may prescribe, in the case of a corporation to
which paragraph (1) applies by reason of this paragraph--
``(i) the corporation shall be treated, as of the close of
its last taxable year beginning before January 1, 2007, as
having transferred all of its assets, liabilities, and
earnings and profits to a domestic corporation in a
transaction with respect to which no tax is imposed under
this title,
``(ii) the bases of the assets transferred in the
transaction to the domestic corporation shall be the same as
the bases of the assets in the hands of the foreign
corporation, subject to any adjustments under this title for
built-in losses,
``(iii) the basis of the stock of any shareholder in the
domestic corporation shall be the same as the basis of the
stock of the shareholder in the foreign corporation for which
it is treated as exchanged, and
``(iv) the transfer of any earnings and profits by reason
of clause (i) shall be disregarded in determining any deemed
dividend or foreign tax creditable to the domestic
corporation with respect to such transfer.
``(C) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this paragraph, including regulations to prevent the
avoidance of the purposes of this paragraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.
(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(B) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(C) by adding at the end the following new paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for
punitive damages in connection with any judgment in, or
settlement of, any action. This paragraph shall not apply to
punitive damages described in section 104(c).''.
(2) Conforming amendment.--The heading for section 162(g)
is amended by inserting ``Or Punitive Damages'' after
``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer
or Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:
``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.
``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's liability (or agreement) to pay punitive
damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:
``Sec. 91. Punitive damages compensated by insurance or otherwise''.
(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.
SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.
(a) In General.--Subsection (f) of section 162 (relating to
trade or business expenses) is amended to read as follows:
``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation
to--
``(A) the violation of any law, or
``(B) an investigation or inquiry into the potential
violation of any law which is initiated by such government or
entity.
``(2) Exception for amounts constituting restitution or
paid to come into compliance with law.--Paragraph (1) shall
not apply to any amount which--
``(A) the taxpayer establishes--
``(i) constitutes restitution (or remediation of property)
for damage or harm caused by, or which may be caused by, the
violation of any law or the potential violation of any law,
or
``(ii) is paid to come into compliance with any law which
was violated or involved in the investigation or inquiry, and
``(B) is identified as an amount described in clause (i) or
(ii) of subparagraph (A), as the case may be, in the court
order or settlement agreement, except that the requirement of
this subparagraph shall not apply in the case of any
settlement agreement which requires the taxpayer to pay or
incur an amount not greater than $1,000,000.
A taxpayer shall not meet the requirements of subparagraph
(A) solely by reason an identification under subparagraph
(B). This paragraph shall not apply to any amount paid or
incurred as reimbursement to the government or entity for the
costs of any investigation or litigation unless such amount
is paid or incurred for a cost or fee regularly charged for
any routine audit or other customary review performed by the
government or entity.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to
any amount paid or incurred by order of a court in a suit in
which no government or entity described in paragraph (4) is a
party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises self-
regulatory powers (including imposing
[[Page S4121]]
sanctions) in connection with a qualified board or exchange
(as defined in section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory powers
(including imposing sanctions) as part of performing an
essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:
``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.
``(a) Requirement of Reporting.--
``(1) In general.--The appropriate official of any
government or entity which is described in section 162(f)(4)
which is involved in a suit or agreement described in
paragraph (2) shall make a return in such form as determined
by the Secretary setting forth--
``(A) the amount required to be paid as a result of the
suit or agreement to which paragraph (1) of section 162(f)
applies,
``(B) any amount required to be paid as a result of the
suit or agreement which constitutes restitution or
remediation of property, and
``(C) any amount required to be paid as a result of the
suit or agreement for the purpose of coming into compliance
with any law which was violated or involved in the
investigation or inquiry.
``(2) Suit or agreement described.--
``(A) In general.--A suit or agreement is described in this
paragraph if--
``(i) it is--
``(I) a suit with respect to a violation of any law over
which the government or entity has authority and with respect
to which there has been a court order, or
``(II) an agreement which is entered into with respect to a
violation of any law over which the government or entity has
authority, or with respect to an investigation or inquiry by
the government or entity into the potential violation of any
law over which such government or entity has authority, and
``(ii) the aggregate amount involved in all court orders
and agreements with respect to the violation, investigation,
or inquiry is $600 or more.
``(B) Adjustment of reporting threshold.--The Secretary may
adjust the $600 amount in subparagraph (A)(ii) as necessary
in order to ensure the efficient administration of the
internal revenue laws.
``(3) Time of filing.--The return required under this
subsection shall be filed not later than--
``(A) 30 days after the date on which a court order is
issued with respect to the suit or the date the agreement is
entered into, as the case may be, or
``(B) the date specified by the Secretary.
``(b) Statements To Be Furnished to Individuals Involved in
the Settlement.--Every person required to make a return under
subsection (a) shall furnish to each person who is a party to
the suit or agreement a written statement showing--
``(1) the name of the government or entity, and
``(2) the information supplied to the Secretary under
subsection (a)(1).
The written statement required under the preceding sentence
shall be furnished to the person at the same time the
government or entity provides the Secretary with the
information required under subsection (a).
``(c) Appropriate Official Defined.--For purposes of this
section, the term `appropriate official' means the officer or
employee having control of the suit, investigation, or
inquiry or the person appropriately designated for purposes
of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section 6050V
the following new item:
``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred on or after the date
of the enactment of this Act, except that such amendments
shall not apply to amounts paid or incurred under any binding
order or agreement entered into before such date. Such
exception shall not apply to an order or agreement requiring
court approval unless the approval was obtained before such
date.
SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.
(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:
``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom
this section applies shall be treated as sold on the day
before the expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2007, the $600,000
amount under subparagraph (A) shall be increased by an amount
equal to--
``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, determined by
substituting `calendar year 2006' for `calendar year 1992' in
subparagraph (B) thereof.
``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
[[Page S4122]]
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--
``(I) by the amount of taxes imposed by subparagraph (A) on
any distribution to the person holding the trust interest,
and
``(II) in the case of a person holding a nonvested
interest, to the extent provided in regulations, by the
amount of taxes imposed by subparagraph (A) on distributions
from the trust with respect to nonvested interests not held
by such person.
``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of gain
which would be allocable to such beneficiary's vested and
nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--
``(I) the tax imposed by subparagraph (A)(ii) shall be
imposed on the trust and each trustee shall be personally
liable for the amount of such tax, and
``(II) any other beneficiary of the trust shall be entitled
to recover from the distributee the amount of such tax
imposed on the other beneficiary.
``(F) Disposition.--If a trust ceases to be a qualified
trust at any time, a covered expatriate disposes of an
interest in a qualified trust, or a covered expatriate
holding an interest in a qualified trust dies, then, in lieu
of the tax imposed by subparagraph (A)(ii), there is hereby
imposed a tax equal to the lesser of--
``(i) the tax determined under paragraph (1) as if the day
before the expatriation date were the date of such cessation,
disposition, or death, whichever is applicable, or
``(ii) the balance in the tax deferred account immediately
before such date.
Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
[[Page S4123]]
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument and any letter of wishes or
similar document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--
``(I) the methodology used to determine that taxpayer's
trust interest under this section, and
``(II) if the taxpayer knows (or has reason to know) that
any other beneficiary of such trust is using a different
methodology to determine such beneficiary's trust interest
under this section.
``(g) Termination of Deferrals, Etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the
expatriation date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any
taxable year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the
extent attributable to gain includible in gross income by
reason of this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results in the
deferral of any tax imposed by reason of subsection (a), the
deferred amount (including any interest, additional amount,
addition to tax, assessable penalty, and costs attributable
to the deferred amount) shall be a lien in favor of the
United States on all property of the expatriate located in
the United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this subsection,
the deferred amount is the amount of the increase in the
covered expatriate's income tax which, but for the election
under subsection (a)(4) or (b), would have occurred by reason
of this section for the taxable year including the
expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this section is
satisfied or has become unenforceable by reason of lapse of
time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by reason
of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date.
``(B) Determination of basis.--Notwithstanding sections
1015 or 1022, the basis of any property described in
subparagraph (A) in the hands of the donee or the person
acquiring such property from the decedent shall be equal to
the fair market value of the property at the time of the
gift, bequest, devise, or inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:
``Sec. 877A. Tax responsibilities of expatriation''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after the date
of the enactment of this Act.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after the date of the
enactment of this Act, from an individual or the estate of an
[[Page S4124]]
individual whose expatriation date (as so defined) occurs
after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.
SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED
UNDER NONQUALIFIED DEFERRED COMPENSATION
ARRANGEMENTS.
(a) In General.--Section 409A(a) of the Internal Revenue
Code of 1986 (relating to inclusion of gross income under
nonqualified deferred compensation plans) is amended--
(1) by striking ``and (4)'' in subclause (I) of paragraph
(1)(A)(i) and inserting ``(4), and (5)'', and
(2) by adding at the end the following new paragraph:
``(5) Annual limitation on aggregate deferred amounts.--
``(A) Limitation.--The requirements of this paragraph are
met if the plan provides that the aggregate amount of
compensation which is deferred for any taxable year with
respect to a participant under the plan may not exceed the
applicable dollar amount for the taxable year.
``(B) Inclusion of future earnings.--If an amount is
includible under paragraph (1) in the gross income of a
participant for any taxable year by reason of any failure to
meet the requirements of this paragraph, any income (whether
actual or notional) for any subsequent taxable year shall be
included in gross income under paragraph (1)(A) in such
subsequent taxable year to the extent such income--
``(i) is attributable to compensation (or income
attributable to such compensation) required to be included in
gross income by reason of such failure (including by reason
of this subparagraph), and
``(ii) is not subject to a substantial risk of forfeiture
and has not been previously included in gross income.
``(C) Aggregation rule.--For purposes of this paragraph,
all nonqualified deferred compensation plans maintained by
all employers treated as a single employer under subsection
(d)(6) shall be treated as 1 plan.
``(D) Applicable dollar amount.--For purposes of this
paragraph--
``(i) In general.--The term `applicable dollar amount'
means, with respect to any participant, the lesser of--
``(I) the average annual compensation which was payable
during the base period to the participant by the employer
maintaining the nonqualified deferred compensation plan (or
any predecessor of the employer) and which was includible in
the participant's gross income for taxable years in the base
period, or
``(II) $1,000,000.
``(ii) Base period.--
``(I) In general.--The term `base period' means, with
respect to any computation year, the 5-taxable year period
ending with the taxable year preceding the computation year.
``(II) Elections made before computation year.--If, before
the beginning of the computation year, an election described
in paragraph (4)(B) is made by the participant to have
compensation for services performed in the computation year
deferred under a nonqualified deferred compensation plan, the
base period shall be the 5-taxable year period ending with
the taxable year preceding the taxable year in which the
election is made.
``(III) Computation year.--For purposes of this clause, the
term `computation year' means any taxable year of the
participant for which the limitation under subparagraph (A)
is being determined.
``(IV) Special rule for employees of less than 5 years.--If
a participant did not perform services for the employer
maintaining the nonqualified deferred compensation plan (or
any predecessor of the employer) during the entire 5-taxable
year period referred to in subparagraph (A) or (B), only the
portion of such period during which the participant performed
such services shall be taken into account.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006,
except that--
(A) the amendments shall only apply to amounts deferred
after December 31, 2006 (and to earnings on such amounts),
and
(B) taxable years beginning on or before December 31, 2006,
shall be taken into account in determining the average annual
compensation of a participant during any base period for
purposes of section 409A(a)(5)(D) of the Internal Revenue
Code of 1986 (as added by such amendments).
(2) Guidance relating to certain existing arrangements.--
Not later than 60 days after the date of the enactment of
this Act, the Secretary of the Treasury shall issue guidance
providing a limited period during which a nonqualified
deferred compensation plan adopted before December 31, 2006,
may, without violating the requirements of section 409A(a) of
such Code, be amended--
(A) to provide that a participant may, no later than
December 31, 2007, cancel or modify an outstanding deferral
election with regard to all or a portion of amounts deferred
after December 31, 2006, to the extent necessary for the plan
to meet the requirements of section 409A(a)(5) of such Code
(as added by the amendments made by this section), but only
if amounts subject to the cancellation or modification are,
to the extent not previously included in gross income,
includible in income of the participant when no longer
subject to substantial risk of forfeiture, and
(B) to conform to the requirements of section 409A(a)(5) of
such Code (as added by the amendments made by this section)
with regard to amounts deferred after December 31, 2006.
SEC. 537. MODIFICATION OF CRIMINAL PENALTIES FOR WILLFUL
FAILURES INVOLVING TAX PAYMENTS AND FILING
REQUIREMENTS.
(a) Increase in Penalty for Attempt To Evade or Defeat
Tax.--Section 7201 (relating to attempt to evade or defeat
tax) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``5 years'' and inserting ``10 years''.
(b) Modification of Penalties for Willful Failure To File
Return, Supply Information, or Pay Tax.--
(1) In general.--Section 7203 (relating to willful failure
to file return, supply information, or pay tax) is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting ``$50,000'',
(B) in the third sentence, by striking ``section'' and
inserting ``subsection'', and
(C) by adding at the end the following new subsection:
``(b) Aggravated Failure To File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$250,000 ($500,000' for `$50,000 ($100,000', and
``(C) `5 years' for `1 year'.
``(2) Failure described.--A failure described in this
paragraph is--
``(A) a failure to make a return described in subsection
(a) for any 3 taxable years occurring during any period of 5
consecutive taxable years if the aggregate tax liability for
such period is not less than $50,000, or
``(B) a failure to make a return if the tax liability
giving rise to the requirement to make such return is
attributable to an activity which is a felony under any State
or Federal law.''.
(2) Penalty may be applied in addition to other
penalties.--Section 7204 (relating to fraudulent statement or
failure to make statement to employees) is amended by
striking ``the penalty provided in section 6674'' and
inserting ``the penalties provided in sections 6674 and
7203(b)''.
(c) Fraud and False Statements.--Section 7206 (relating to
fraud and false statements) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``3 years'' and inserting ``5 years''.
(d) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--Section 7206 (relating to
fraud and false statements), as amended by subsection (a)(3),
is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(e) Effective Date.--The amendments made by this section
shall apply to actions, and failures to act, occurring after
the date of the enactment of this Act.
SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.
(a) Determination of Penalty.--
(1) In general.--Notwithstanding any other provision of
law, in the case of an applicable taxpayer--
(A) the determination as to whether any interest or
applicable penalty is to be imposed with respect to any
arrangement described in paragraph (2), or to any
underpayment of Federal income tax attributable to items
arising in connection with any such arrangement, shall be
made without regard to the rules of subsections (b), (c), and
(d) of section 6664 of the Internal Revenue Code of 1986, and
(B) if any such interest or applicable penalty is imposed,
the amount of such interest or penalty shall be equal to
twice that determined without regard to this section.
(2) Applicable taxpayer.--For purposes of this subsection--
(A) In general.--The term ``applicable taxpayer'' means a
taxpayer which--
(i) has underreported its United States income tax
liability with respect to any item which directly or
indirectly involves--
(I) any financial arrangement which in any manner relies on
the use of offshore payment mechanisms (including credit,
debit, or charge cards) issued by banks or other entities in
foreign jurisdictions, or
(II) any offshore financial arrangement (including any
arrangement with foreign banks, financial institutions,
corporations, partnerships, trusts, or other entities), and
(ii) has neither signed a closing agreement pursuant to the
Voluntary Offshore Compliance Initiative established by the
Department of the Treasury under Revenue Procedure 2003-11
nor
[[Page S4125]]
voluntarily disclosed its participation in such arrangement
by notifying the Internal Revenue Service of such arrangement
prior to the issue being raised by the Internal Revenue
Service during an examination.
(B) Authority to waive.--The Secretary of the Treasury or
the Secretary's delegate may waive the application of
paragraph (1) to any taxpayer if the Secretary or the
Secretary's delegate determines that the use of such offshore
payment mechanisms is incidental to the transaction and, in
addition, in the case of a trade or business, such use is
conducted in the ordinary course of the type of trade or
business of the taxpayer.
(C) Issues raised.--For purposes of subparagraph (A)(ii),
an item shall be treated as an issue raised during an
examination if the individual examining the return--
(i) communicates to the taxpayer knowledge about the
specific item, or
(ii) has made a request to the taxpayer for information and
the taxpayer could not make a complete response to that
request without giving the examiner knowledge of the specific
item.
(b) Applicable Penalty.--For purposes of this section, the
term ``applicable penalty'' means any penalty, addition to
tax, or fine imposed under chapter 68 of the Internal Revenue
Code of 1986.
(c) Effective Date.--The provisions of this section shall
apply to interest, penalties, additions to tax, and fines
with respect to any taxable year if, as of the date of the
enactment of this Act, the assessment of any tax, penalty, or
interest with respect to such taxable year is not prevented
by the operation of any law or rule of law.
SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY
ORDERS.
(a) In General.--Section 6657 (relating to bad checks) is
amended--
(1) by striking ``$750'' and inserting ``$1,250'', and
(2) by striking ``$15'' and inserting ``$25''.
(b) Effective Date.--The amendments made by this section
apply to checks or money orders received after the date of
the enactment of this Act.
SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT
INSTRUMENTS.
(a) In General.--Section 1275(d) (relating to regulation
authority) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'', and
(2) by adding at the end the following new paragraph:
``(2) Treatment of contingent payment convertible debt.--
``(A) In general.--In the case of a debt instrument which--
``(i) is convertible into stock of the issuing corporation,
into stock or debt of a related party (within the meaning of
section 267(b) or 707(b)(1)), or into cash or other property
in an amount equal to the approximate value of such stock or
debt, and
``(ii) provides for 1 or more contingent payments,
any regulations which require original issue discount to be
determined by reference to the comparable yield of a fixed-
rate debt instrument shall be applied as if the regulations
require that such comparable yield be determined by reference
to a fixed-rate debt instrument which is convertible into
stock.
``(B) Special rule.--For purposes of subparagraph (A), the
comparable yield shall be determined without taking into
account the yield resulting from the conversion of a debt
instrument into stock.''.
(b) Cross Reference.--Section 163(e)(6) (relating to cross
references) is amended by adding at the end the following:
``For the treatment of contingent payment convertible debt,
see section 1275(d)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to debt instruments issued on or after the date
of the enactment of this Act.
SEC. 541. EXTENSION OF IRS USER FEES.
Subsection (c) of section 7528 (relating to Internal
Revenue Service user fees) is amended by striking ``September
30, 2014'' and inserting ``September 30, 2016''.
SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES
FOR EMPLOYMENT TAX LIABILITIES.
(a) In General.--Section 6330(f) (relating to jeopardy and
State refund collection) is amended--
(1) by striking ``; or'' at the end of paragraph (1) and
inserting a comma,
(2) by adding ``or'' at the end of paragraph (2), and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has served a levy in connection with
the collection of taxes under chapter 21, 22, 23, or 24,''.
(b) Effective Date.--The amendments made by this section
shall apply to levies issued on or after the date that is 120
days after the date of the enactment of this Act.
SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.
(a) Modification of Tax Threshold for Awards.--Subparagraph
(B) of section 7623(b)(5), as added by the Tax Relief and
Health Care Act of 2006, is amended by striking
``$2,000,000'' and inserting ``$20,000''.
(b) Whistleblower Office.--
(1) In general.--Section 7623 is amended by adding at the
end the following new subsections:
``(c) Whistleblower Office.--
``(1) In general.--There is established in the Internal
Revenue Service an office to be known as the `Whistleblower
Office' which--
``(A) shall at all times operate at the direction of the
Commissioner and coordinate and consult with other divisions
in the Internal Revenue Service as directed by the
Commissioner,
``(B) shall analyze information received from any
individual described in subsection (b) and either investigate
the matter itself or assign it to the appropriate Internal
Revenue Service office,
``(C) shall monitor any action taken with respect to such
matter,
``(D) shall inform such individual that it has accepted the
individual's information for further review,
``(E) may require such individual and any legal
representative of such individual to not disclose any
information so provided,
``(F) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual, and
``(G) shall determine the amount to be awarded to such
individual under subsection (b).
``(2) Funding for office.--There is authorized to be
appropriated $10,000,000 for each fiscal year for the
Whistleblower Office. These funds shall be used to maintain
the Whistleblower Office and also to reimburse other Internal
Revenue Service offices for related costs, such as costs of
investigation and collection.
``(3) Request for assistance.--
``(A) In general.--Any assistance requested under paragraph
(1)(F) shall be under the direction and control of the
Whistleblower Office or the office assigned to investigate
the matter under subparagraph (A). No individual or legal
representative whose assistance is so requested may by reason
of such request represent himself or herself as an employee
of the Federal Government.
``(B) Funding of assistance.--From the amounts available
for expenditure under subsection (b), the Whistleblower
Office may, with the agreement of the individual described in
subsection (b), reimburse the costs incurred by any legal
representative of such individual in providing assistance
described in subparagraph (A).
``(d) Reports.--The Secretary shall each year conduct a
study and report to Congress on the use of this section,
including--
``(1) an analysis of the use of this section during the
preceding year and the results of such use, and
``(2) any legislative or administrative recommendations
regarding the provisions of this section and its
application.''.
(2) Conforming amendment.--Section 406 of division A of the
Tax Relief and Health Care Act of 2006 is amended by striking
subsections (b) and (c).
(3) Report on implementation.--Not later than 6 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall submit to Congress a report on the
establishment and operation of the Whistleblower Office under
section 7623(c) of the Internal Revenue Code of 1986.
(c) Publicity of Award Appeals.--Paragraph (4) of section
7623(b), as added by the Tax Relief and Health Care Act of
2006, is amended to read as follows:
``(4) Appeal of award determination.--
``(A) In general.--Any determination regarding an award
under paragraph (1), (2), or (3) may, within 30 days of such
determination, be appealed to the Tax Court (and the Tax
Court shall have jurisdiction with respect to such matter).
``(B) Publicity of appeals.--Notwithstanding sections 7458
and 7461, the Tax Court may, in order to preserve the
anonymity, privacy, or confidentiality of any person under
this subsection, provide by rules adopted under section 7453
that portions of filings, hearings, testimony, evidence, and
reports in connection with proceedings under this subsection
may be closed to the public or to inspection by the
public.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to information
provided on or after the date of the enactment of this Act.
(2) Publicity of award appeals.--The amendment made by
subsection (c) shall take effect as if included in the
amendments made by section 406 of the Tax Relief and Health
Care Act of 2006.
SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY
DENIAL OF DEDUCTION FOR EXCESSIVE EMPLOYEE
REMUNERATION.
(a) In General.--Paragraph (3) of section 162(m) is amended
to read as follows:
``(3) Covered employee.--For purposes of this subsection,
the term `covered employee' means, with respect to any
taxpayer for any taxable year, an individual who--
``(A) was the chief executive officer of the taxpayer, or
an individual acting in such a capacity, at any time during
the taxable year,
``(B) is 1 of the 4 highest compensated officers of the
taxpayer for the taxable year (other than the individual
described in subparagraph (A)), or
``(C) was a covered employee of the taxpayer (or any
predecessor) for any preceding taxable year beginning after
December 31, 2006.
``In the case of an individual who was a covered employee
for any taxable year beginning after December 31, 2006, the
term `covered employee' shall include a beneficiary of such
employee with respect to any remuneration for services
performed by such employee as a covered employee (whether or
not such services are performed during the taxable year in
which the remuneration is paid).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
[[Page S4126]]
SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED
INCOME IS TAXED AS IF PARENT'S INCOME.
(a) In General.--Subparagraph (A) of section 1(g)(2)
(relating to child to whom subsection applies) is amended to
read as follows:
``(A) such child--
``(i) has not attained age 18 before the close of the
taxable year, or
``(ii)(I) has attained age 18 before the close of the
taxable year and meets the age requirements of section
152(c)(3) (determined without regard to subparagraph (B)
thereof), and
``(II) whose earned income (as defined in section
911(d)(2)) for such taxable year does not exceed one-half of
the amount of the individual's support (within the meaning of
section 152(c)(1)(D) after the application of section
152(f)(5) (without regard to subparagraph (A) thereof) for
such taxable year,''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Section 6721(a)(1) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$250,000'' and inserting ``$3,000,000''.
(2) Reduction where correction in specified period.--
(A) Correction within 30 days.--Section 6721(b)(1) is
amended--
(i) by striking ``$15'' and inserting ``$50'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$75,000'' and inserting ``$500,000''.
(B) Failures corrected on or before august 1.--Section
6721(b)(2) is amended--
(i) by striking ``$30'' and inserting ``$100'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$150,000'' and inserting
``$1,500,000''.
(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting ``$1,000,000'',
and
(ii) by striking ``$250,000'' and inserting ``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting ``$175,000'', and
(ii) by striking ``$75,000'' and inserting ``$500,000'',
and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting ``$500,000'', and
(ii) by striking ``$150,000'' and inserting ``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(b) Failure to Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(c) Failure To Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.
SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE
ORGANIZATIONS.
(a) In General.--The first sentence of section 6011(e)(2)
is amended to read as follows: ``In prescribing regulations
under paragraph (1), the Secretary shall take into account
(among other relevant factors) the ability of the taxpayer to
comply at reasonable cost with the requirements of such
regulations.''.
(b) Conforming Amendment.--Section 6724 is amended by
striking subsection (c).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after December 31,
2008.
SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN NATIONAL
DIRECTORY OF NEW HIRES FOR TAX ADMINISTRATION
PURPOSES.
(a) In General.--Paragraph (3) of section 453(j) of the
Social Security Act (42 U.S.C. 653(j)) is amended to read as
follows:
``(3) Administration of federal tax laws.--The Secretary of
the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
the Internal Revenue Code of 1986.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMATION TO
FEDERAL BUREAU OF PRISONS.
(a) Disclosure.--
(1) In general.--Subsection (l) of section 6103 (relating
to disclosure of returns and return information for purposes
other than tax administration) is amended by adding at the
end the following new paragraph:
``(22) Disclosure of return information of prisoners to
federal bureau of prisons.--
``(A) In general.--Under such procedures as the Secretary
may prescribe, the Secretary may disclose return information
with respect to persons incarcerated in Federal prisons whom
the Secretary believes filed or facilitated the filing of
false or fraudulent returns to the head of the Federal Bureau
of Prisons if the Secretary determines that such disclosure
is necessary to permit effective tax administration.
``(B) Disclosure by agency to employees.--The head of the
Federal Bureau of Prisons may redisclose information received
under subparagraph (A)--
``(i) only to those officers and employees of the Bureau
who are personally and directly engaged in taking
administrative actions to address violations of
administrative rules and regulations of the prison facility,
and
``(ii) solely for the purposes described in subparagraph
(C).
``(C) Restriction on use of disclosed information.--Return
information disclosed under this paragraph may be used only
for the purposes of--
``(i) preventing the filing of false or fraudulent returns;
and
``(ii) taking administrative actions against individuals
who have filed or attempted to file false or fraudulent
returns.''.
(2) Procedures and record keeping related to disclosure.--
Subsection (p)(4) of section 6103 is amended--
(A) by striking ``(14), or (17)'' in the matter before
subparagraph (A) and inserting ``(14), (17), or (22)'', and
(B) by striking ``(9), or (16)'' in subparagraph (F)(i) and
inserting ``(9), (16), or (22)''.
(3) Evaluation by treasury inspector general for tax
administration.--Paragraph (3) of section 7803(d) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``; and'', and by adding at the end the following
new subparagraph:
``(C) not later than 3 years after the date of the
enactment of section 6103(l)(22), submit a written report to
Congress on the implementation of such section.''.
(b) Annual Reports.--
(1) In general.--The Secretary of the Treasury shall submit
to Congress and make publicly available an annual report on
the filing of false and fraudulent returns by individuals
incarcerated in Federal and State prisons.
(2) Contents of report.--The report submitted under
paragraph (1) shall contain statistics on the number of false
or fraudulent returns associated with each Federal and State
prison and such other information that the Secretary
determines is appropriate.
(3) Exchange of information.--For the purpose of gathering
information necessary for the reports required under
paragraph (1), the Secretary of the Treasury shall enter into
agreements with the head of the Federal Bureau of Prisons and
the heads of State agencies charged with responsibility for
administration of State prisons under which the head of the
Bureau or Agency provides to the Secretary not less
frequently than annually the names and other identifying
information of prisoners incarcerated at each facility
administered by the Bureau or Agency.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures on or after January 1, 2008.
SEC. 550. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN
PREPARERS.
(a) Application of Return Preparer Penalties to All Tax
Returns.--
(1) Definition of tax return preparer.--Paragraph (36) of
section 7701(a) (relating to income tax preparer) is
amended--
(A) by striking ``income'' each place it appears in the
heading and the text, and
(B) in subparagraph (A), by striking ``subtitle A'' each
place it appears and inserting ``this title''.
(2) Conforming amendments.--
(A)(i) Section 6060 is amended by striking ``INCOME TAX
RETURN PREPARERS'' in the heading and inserting ``TAX RETURN
PREPARERS''.
(ii) Section 6060(a) is amended--
(I) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer'',
(II) by striking ``each income tax return preparer'' and
inserting ``each tax return preparer'', and
(III) by striking ``another income tax return preparer''
and inserting ``another tax return preparer''.
(iii) The item relating to section 6060 in the table of
sections for subpart F of part III of subchapter A of chapter
61 is amended by striking ``income tax return preparers'' and
inserting ``tax return preparers''.
(iv) Subpart F of part III of subchapter A of chapter 61 is
amended by striking ``INCOME TAX RETURN PREPARERS'' in the
heading and inserting ``TAX RETURN PREPARERS''.
(v) The item relating to subpart F in the table of subparts
for part III of subchapter A of chapter 61 is amended by
striking ``income tax return preparers'' and inserting ``tax
return preparers''.
(B) Section 6103(k)(5) is amended--
(i) by striking ``income tax return preparer'' each place
it appears and inserting ``tax return preparer'', and
(ii) by striking ``income tax return preparers'' each place
it appears and inserting ``tax return preparers''.
(C)(i) Section 6107 is amended--
(I) by striking ``INCOME TAX RETURN PREPARER'' in the
heading and inserting ``TAX RETURN PREPARER'',
(II) by striking ``an income tax return preparer'' each
place it appears in subsections (a) and (b) and inserting ``a
tax return preparer'',
[[Page S4127]]
(III) by striking ``Income Tax Return Preparer'' in the
heading for subsection (b) and inserting ``Tax Return
Preparer'', and
(IV) in subsection (c), by striking ``income tax return
preparers'' and inserting ``tax return preparers''.
(ii) The item relating to section 6107 in the table of
sections for subchapter B of chapter 61 is amended by
striking ``Income tax return preparer'' and inserting ``Tax
return preparer''.
(D) Section 6109(a)(4) is amended--
(i) by striking ``an income tax return preparer'' and
inserting ``a tax return preparer'', and
(ii) by striking ``income return preparer'' in the heading
and inserting ``tax return preparer''.
(E) Section 6503(k)(4) is amended by striking ``Income tax
return preparers'' and inserting ``Tax return preparers''.
(F)(i) Section 6694 is amended--
(I) by striking ``INCOME TAX RETURN PREPARER'' in the
heading and inserting ``TAX RETURN PREPARER'',
(II) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer'',
(III) in subsection (c)(2), by striking ``the income tax
return preparer'' and inserting ``the tax return preparer'',
(IV) in subsection (e), by striking ``subtitle A'' and
inserting ``this title'', and
(V) in subsection (f), by striking ``income tax return
preparer'' and inserting ``tax return preparer''.
(ii) The item relating to section 6694 in the table of
sections for part I of subchapter B of chapter 68 is amended
by striking ``income tax return preparer'' and inserting
``tax return preparer''.
(G)(i) Section 6695 is amended--
(I) by striking ``INCOME'' in the heading, and
(II) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer''.
(ii) Section 6695(f) is amended--
(I) by striking ``subtitle A'' and inserting ``this
title'', and
(II) by striking ``the income tax return preparer'' and
inserting ``the tax return preparer''.
(iii) The item relating to section 6695 in the table of
sections for part I of subchapter B of chapter 68 is amended
by striking ``income''.
(H) Section 6696(e) is amended by striking ``subtitle A''
each place it appears and inserting ``this title''.
(I)(i) Section 7407 is amended--
(I) by striking ``INCOME TAX RETURN PREPARERS'' in the
heading and inserting ``TAX RETURN PREPARERS'',
(II) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer'',
(III) by striking ``income tax preparer'' both places it
appears in subsection (a) and inserting ``tax return
preparer'', and
(IV) by striking ``income tax return'' in subsection (a)
and inserting ``tax return''.
(ii) The item relating to section 7407 in the table of
sections for subchapter A of chapter 76 is amended by
striking ``income tax return preparers'' and inserting ``tax
return preparers''.
(J)(i) Section 7427 is amended--
(I) by striking ``INCOME TAX RETURN PREPARERS'' in the
heading and inserting ``TAX RETURN PREPARERS'', and
(II) by striking ``an income tax return preparer'' and
inserting ``a tax return preparer''.
(ii) The item relating to section 7427 in the table of
sections for subchapter B of chapter 76 is amended to read as
follows:
``Sec. 7427. Tax return preparers.''.
(b) Modification of Penalty for Understatement of
Taxpayer's Liability by Tax Return Preparer.--Subsections (a)
and (b) of section 6694 are amended to read as follows:
``(a) Understatement Due to Unreasonable Positions.--
``(1) In general.--Any tax return preparer who prepares any
return or claim for refund with respect to which any part of
an understatement of liability is due to a position described
in paragraph (2) shall pay a penalty with respect to each
such return or claim in an amount equal to the greater of--
``(A) $1,000, or
``(B) 50 percent of the income derived (or to be derived)
by the tax return preparer with respect to the return or
claim.
``(2) Unreasonable position.--A position is described in
this paragraph if--
``(A) the tax return preparer knew (or reasonably should
have known) of the position,
``(B) there was not a reasonable belief that the position
would more likely than not be sustained on its merits, and
``(C)(i) the position was not disclosed as provided in
section 6662(d)(2)(B)(ii), or
``(ii) there was no reasonable basis for the position.
``(3) Reasonable cause exception.--No penalty shall be
imposed under this subsection if it is shown that there is
reasonable cause for the understatement and the tax return
preparer acted in good faith.
``(b) Understatement Due to Willful or Reckless Conduct.--
``(1) In general.--Any tax return preparer who prepares any
return or claim for refund with respect to which any part of
an understatement of liability is due to a conduct described
in paragraph (2) shall pay a penalty with respect to each
such return or claim in an amount equal to the greater of--
``(A) $5,000, or
``(B) 50 percent of the income derived (or to be derived)
by the tax return preparer with respect to the return or
claim.
``(2) Willful or reckless conduct.--Conduct described in
this paragraph is conduct by the tax return preparer which
is--
``(A) a willful attempt in any manner to understate the
liability for tax on the return or claim, or
``(B) a reckless or intentional disregard of rules or
regulations.
``(3) Reduction in penalty.--The amount of any penalty
payable by any person by reason of this subsection for any
return or claim for refund shall be reduced by the amount of
the penalty paid by such person by reason of subsection
(a).''.
(c) Effective Date.--The amendments made by this section
shall apply to returns prepared after the date of the
enactment of this Act.
SEC. 551. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.
(a) In General.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by inserting
after section 6675 the following new section:
``SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT.
``(a) Civil Penalty.--If a claim for refund or credit with
respect to income tax (other than a claim for a refund or
credit relating to the earned income credit under section 32)
is made for an excessive amount, unless it is shown that the
claim for such excessive amount has a reasonable basis, the
person making such claim shall be liable for a penalty in an
amount equal to 20 percent of the excessive amount.
``(b) Excessive Amount.--For purposes of this section, the
term `excessive amount' means in the case of any person the
amount by which the amount of the claim for refund or credit
for any taxable year exceeds the amount of such claim
allowable under this title for such taxable year.
``(c) Coordination With Other Penalties.--This section
shall not apply to any portion of the excessive amount of a
claim for refund or credit on which a penalty is imposed
under part II of subchapter A of chapter 68.''.
(b) Conforming Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by inserting after
the item relating to section 6675 the following new item:
``Sec. 6676. Erroneous claim for refund or credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to any claim--
(1) filed or submitted after the date of the enactment of
this Act, or
(2) filed or submitted prior to such date but not withdrawn
before the date which is 30 days after such date of
enactment.
SEC. 552. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.
(a) In General.--Paragraphs (1)(A) and (3)(A) of section
6404(g) are each amended by striking ``18-month period'' and
inserting ``36-month period''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to notices
provided by the Secretary of the Treasury, or his delegate
after the date which is 6 months after the date of the
enactment of this Act.
(2) Exception for certain taxpayers.--The amendments made
by this section shall not apply to any taxpayer with respect
to whom a suspension of any interest, penalty, addition to
tax, or other amount is in effect on the date which is 6
months after the date of the enactment of this Act.
SEC. 553. ADDITIONAL REASONS FOR SECRETARY TO TERMINATE
INSTALLMENT AGREEMENTS.
(a) In General.--Section 6159(b)(4) (relating to failure to
pay an installment or any other tax liability when due or to
provide requested financial information) is amended by
striking ``or'' at the end of subparagraph (B), by
redesignating subparagraph (C) as subparagraph (E), and by
inserting after subparagraph (B) the following new
subparagraphs:
``(C) to make a Federal tax deposit under section 6302 at
the time such deposit is required to be made,
``(D) to file a return of tax imposed under this title by
its due date (including extensions), or''.
(b) Conforming Amendment.--The heading for paragraph (4) of
section 6159(b) is amended by striking ``Failure to pay an
installment or any other tax liability when due or to provide
requested financial information'' and inserting ``Failure to
make payments or deposits or file returns when due or to
provide requested financial information''.
(c) Effective Date.--The amendments made by this section
shall apply to failures occurring on or after the date of the
enactment of this Act.
SEC. 554. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-
COMPROMISE.
(a) In General.--Section 7122(b) (relating to record) is
amended by striking ``Whenever a compromise'' and all that
follows through ``his delegate, with his reasons therefor''
and inserting ``If the Secretary determines that an opinion
of the General Counsel for the Department of the Treasury, or
the Counsel's delegate, is required with respect to a
compromise, there shall be placed on file in the office of
the Secretary such opinion, with the reasons therefor''.
(b) Conforming Amendments.--Section 7122(b) is amended by
striking the second and third sentences.
(c) Effective Date.--The amendments made by this section
shall apply to offers-in-compromise submitted or pending on
or after the date of the enactment of this Act.
SEC. 555. AUTHORIZATION FOR FINANCIAL MANAGEMENT SERVICE
RETENTION OF TRANSACTION FEES FROM LEVIED
AMOUNTS.
(a) In General.--Subsection (h) of section 6331 (relating
to continuing levy on certain payments) is amended by adding
at the end the following new paragraph:
``(4) Imposition of financial management services
transaction fees.--If the Secretary
[[Page S4128]]
approves a levy under this subsection, the Secretary may
impose on the taxpayer a transaction fee sufficient to cover
the full cost of implementing the levy under this subsection.
Such fee--
``(A) shall be treated as an expense under section 6341,
``(B) may be collected through a levy under this
subsection, and
``(C) shall be in addition to the amount of tax liability
with respect to which such levy was approved.''.
(b) Retention of Fees by Financial Management Service.--The
Financial Management Service may retain the amount of any
transaction fee imposed under section 6331(h)(4) of the
Internal Revenue Code of 1986. Any amount retained by the
Financial Management Service under that section shall be
deposited into the account of the Department of the Treasury
under section 3711(g)(7) of title 31, United States Code.
(c) Effective Date.--The amendment made by this section
shall apply to amounts levied after the date of the enactment
of this Act.
SEC. 556. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.
SEC. 557. INCREASE IN PENALTY EXCISE TAXES ON THE POLITICAL
AND EXCESS LOBBYING ACTIVITIES OF SECTION
501(C)(3) ORGANIZATIONS.
(a) Taxes on Disqualifying Lobbying Expenditures of Certain
Organizations.--
(1) In general.--Section 4912(a) (relating to tax on
organization) is amended by striking ``5 percent'' and
inserting ``10 percent''.
(2) Tax on management.--Section 4912(b) is amended by
striking ``5 percent'' and inserting ``10 percent''.
(b) Taxes on Political Expenditures of Section 501(c)(3)
Organizations.--
(1) In general.--Section 4955(a) (relating to initial
taxes) is amended--
(A) in paragraph (1), by striking ``10 percent'' and
inserting ``20 percent'', and
(B) in paragraph (2), by striking ``2\1/2\ percent'' and
inserting ``5 percent''.
(2) Increased limitation for managers.--Section 4955(c)(2)
is amended--
(A) by striking ``$5,000'' and inserting ``$10,000'', and
(B) by striking ``$10,000'' and inserting ``$20,000''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 558. INCREASED PENALTY FOR FAILURE TO FILE FOR EXEMPT
ORGANIZATIONS.
(a) In General.--Subparagraph (A) of section 6652(c)(1)
(relating to annual returns under section 6033(a)(1) or
6012(a)(6)) is amended by adding at the end the following new
sentence: ``In the case of an organization having gross
receipts exceeding $25,000,000 for any year, with respect to
the return so required, the first sentence of this
subparagraph shall be applied by substituting `$250' for
`$20' and, in lieu of applying the second sentence of this
subparagraph, the maximum penalty under this subparagraph
shall not exceed $125,000.''.
(b) Conforming Amendment.--The third sentence of section
6652(c)(1)(A) is amended by inserting ``but not exceeding
$25,000,000'' after ``$1,000,000''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed on or after
January 1, 2008.
SEC. 559. PENALTIES FOR FAILURE TO FILE CERTAIN RETURNS
ELECTRONICALLY.
(a) In General.--Part I of subchapter A of chapter 68
(relating to additions to the tax, additional amounts, and
assessable penalties) is amended by inserting after section
6652 the following new section:
``SEC. 6652A. FAILURE TO FILE CERTAIN RETURNS ELECTRONICALLY.
``(a) In General.--If a person fails to file a return
described in section 6651 or 6652(c)(1) in electronic form as
required under section 6011(e)--
``(1) such failure shall be treated as a failure to file
such return (even if filed in a form other than electronic
form), and
``(2) the penalty imposed under section 6651 or 6652(c),
whichever is appropriate, shall be equal to the greater of--
``(A) the amount of the penalty under such section,
determined without regard to this section, or
``(B) the amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the penalty determined under this subsection is equal to
$40 for each day during which a failure described under
subsection (a) continues. The maximum penalty under this
paragraph on failures with respect to any 1 return shall not
exceed the lesser of $20,000 or 10 percent of the gross
receipts of the taxpayer for the year.
``(2) Increased penalties for taxpayers with gross receipts
between $1,000,000 and $100,000,000.--
``(A) Taxpayers with gross receipts between $1,000,000 and
$25,000,000.--In the case of a taxpayer having gross receipts
exceeding $1,000,000 but not exceeding $25,000,000 for any
year--
``(i) the first sentence of paragraph (1) shall be applied
by substituting `$200' for `$40', and
``(ii) in lieu of applying the second sentence of paragraph
(1), the maximum penalty under paragraph (1) shall not exceed
$100,000.
``(B) Taxpayers with gross receipts over $25,000,000.--
Except as provided in paragraph (3), in the case of a
taxpayer having gross receipts exceeding $25,000,000 for any
year--
``(i) the first sentence of paragraph (1) shall be applied
by substituting `$500' for `$40', and
``(ii) in lieu of applying the second sentence of paragraph
(1), the maximum penalty under paragraph (1) shall not exceed
$250,000.
``(3) Increased penalties for certain taxpayers with gross
receipts exceeding $100,000,000.--In the case of a return
described in section 6651--
``(A) Taxpayers with gross receipts between $100,000,000
and $250,000,000.--In the case of a taxpayer having gross
receipts exceeding $100,000,000 but not exceeding
$250,000,000 for any year--
``(i) the amount of the penalty determined under this
subsection shall equal the sum of--
``(I) $50,000, plus
``(II) $1,000 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and
``(ii) the maximum amount under clause (i)(II) on failures
with respect to any 1 return shall not exceed $200,000.
``(B) Taxpayers with gross receipts over $250,000,000.--In
the case of a taxpayer having gross receipts exceeding
$250,000,000 for any year--
``(i) the amount of the penalty determined under this
subsection shall equal the sum of--
``(I) $250,000, plus
``(II) $2,500 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and
``(ii) the maximum amount under clause (i)(II) on failures
with respect to any 1 return shall not exceed $250,000.
``(C) Exception for certain returns.--Subparagraphs (A) and
(B) shall not apply to any return of tax imposed under
section 511.''.
(b) Clerical Amendment.--The table of sections for part I
of subchapter A of chapter 68 is amended by inserting after
the item relating to section 6652 the following new item:
``Sec. 6652A. Failure to file certain returns electronically.''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed on or after
January 1, 2008.
PART III--GENERAL PROVISIONS
SEC. 561. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL
BUSINESSES.
(a) In General.--Section 212 of the Small Business
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601
note) is amended by striking subsection (a) and inserting the
following:
``(a) Compliance Guide.--
``(1) In general.--For each rule or group of related rules
for which an agency is required to prepare a final regulatory
flexibility analysis under section 605(b) of title 5, United
States Code, the agency shall publish 1 or more guides to
assist small entities in complying with the rule and shall
entitle such publications `small entity compliance guides'.
``(2) Publication of guides.--The publication of each guide
under this subsection shall include--
``(A) the posting of the guide in an easily identified
location on the website of the agency; and
``(B) distribution of the guide to known industry contacts,
such as small entities, associations, or industry leaders
affected by the rule.
``(3) Publication date.--An agency shall publish each guide
(including the posting and distribution of the guide as
described under paragraph (2))--
``(A) on the same date as the date of publication of the
final rule (or as soon as possible after that date); and
``(B) not later than the date on which the requirements of
that rule become effective.
``(4) Compliance actions.--
``(A) In general.--Each guide shall explain the actions a
small entity is required to take to comply with a rule.
``(B) Explanation.--The explanation under subparagraph
(A)--
``(i) shall include a description of actions needed to meet
the requirements of a rule, to enable a small entity to know
when such requirements are met; and
``(ii) if determined appropriate by the agency, may include
a description of possible procedures, such as conducting
tests, that may assist a small entity in meeting such
requirements, except that, compliance with any procedures
described pursuant to this section does not establish
compliance with the rule, or establish a presumption or
inference of such compliance.
``(C) Procedures.--Procedures described under subparagraph
(B)(ii)--
``(i) shall be suggestions to assist small entities; and
``(ii) shall not be additional requirements, or diminish
requirements, relating to the rule.
``(5) Agency preparation of guides.--The agency shall, in
its sole discretion, taking into account the subject matter
of the rule and the language of relevant statutes, ensure
that the guide is written using sufficiently plain language
likely to be understood by affected small entities. Agencies
may prepare separate guides covering groups or classes of
similarly affected small entities and may cooperate with
associations of small entities to develop and distribute such
guides. An agency may prepare guides and apply this section
with respect to a rule or a group of related rules.
``(6) Reporting.--Not later than 1 year after the date of
enactment of the Fair Minimum Wage Act of 2007, and annually
thereafter, the head of each agency shall submit a report to
the Committee on Small Business and Entrepreneurship of the
Senate, the Committee on Small Business of the House of
Representatives, and any other committee of relevant
jurisdiction describing the status of the agency's compliance
with paragraphs (1) through (5).''.
[[Page S4129]]
(b) Technical and Conforming Amendment.--Section 211(3) of
the Small Business Regulatory Enforcement Fairness Act of
1996 (5 U.S.C. 601 note) is amended by inserting ``and
entitled'' after ``designated''.
SEC. 562. SMALL BUSINESS CHILD CARE GRANT PROGRAM.
(a) Establishment.--The Secretary of Health and Human
Services (referred to in this section as the ``Secretary'')
shall establish a program to award grants to States, on a
competitive basis, to assist States in providing funds to
encourage the establishment and operation of employer-
operated child care programs.
(b) Application.--To be eligible to receive a grant under
this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including an assurance that the funds required under
subsection (e) will be provided.
(c) Amount and Period of Grant.--The Secretary shall
determine the amount of a grant to a State under this section
based on the population of the State as compared to the
population of all States receiving grants under this section.
The Secretary shall make the grant for a period of 3 years.
(d) Use of Funds.--
(1) In general.--A State shall use amounts provided under a
grant awarded under this section to provide assistance to
small businesses (or consortia formed in accordance with
paragraph (3)) located in the State to enable the small
businesses (or consortia) to establish and operate child care
programs. Such assistance may include--
(A) technical assistance in the establishment of a child
care program;
(B) assistance for the startup costs related to a child
care program;
(C) assistance for the training of child care providers;
(D) scholarships for low-income wage earners;
(E) the provision of services to care for sick children or
to provide care to school-aged children;
(F) the entering into of contracts with local resource and
referral organizations or local health departments;
(G) assistance for care for children with disabilities;
(H) payment of expenses for renovation or operation of a
child care facility; or
(I) assistance for any other activity determined
appropriate by the State.
(2) Application.--In order for a small business or
consortium to be eligible to receive assistance from a State
under this section, the small business involved shall prepare
and submit to the State an application at such time, in such
manner, and containing such information as the State may
require.
(3) Preference.--
(A) In general.--In providing assistance under this
section, a State shall give priority to an applicant that
desires to form a consortium to provide child care in a
geographic area within the State where such care is not
generally available or accessible.
(B) Consortium.--For purposes of subparagraph (A), a
consortium shall be made up of 2 or more entities that shall
include small businesses and that may include large
businesses, nonprofit agencies or organizations, local
governments, or other appropriate entities.
(4) Limitations.--With respect to grant funds received
under this section, a State may not provide in excess of
$500,000 in assistance from such funds to any single
applicant.
(e) Matching Requirement.--To be eligible to receive a
grant under this section, a State shall provide assurances to
the Secretary that, with respect to the costs to be incurred
by a covered entity receiving assistance in carrying out
activities under this section, the covered entity will make
available (directly or through donations from public or
private entities) non-Federal contributions to such costs in
an amount equal to--
(1) for the first fiscal year in which the covered entity
receives such assistance, not less than 50 percent of such
costs ($1 for each $1 of assistance provided to the covered
entity under the grant);
(2) for the second fiscal year in which the covered entity
receives such assistance, not less than 66\2/3\ percent of
such costs ($2 for each $1 of assistance provided to the
covered entity under the grant); and
(3) for the third fiscal year in which the covered entity
receives such assistance, not less than 75 percent of such
costs ($3 for each $1 of assistance provided to the covered
entity under the grant).
(f) Requirements of Providers.--To be eligible to receive
assistance under a grant awarded under this section, a child
care provider--
(1) who receives assistance from a State shall comply with
all applicable State and local licensing and regulatory
requirements and all applicable health and safety standards
in effect in the State; and
(2) who receives assistance from an Indian tribe or tribal
organization shall comply with all applicable regulatory
standards.
(g) State-Level Activities.--A State may not retain more
than 3 percent of the amount described in subsection (c) for
State administration and other State-level activities.
(h) Administration.--
(1) State responsibility.--A State shall have
responsibility for administering a grant awarded for the
State under this section and for monitoring covered entities
that receive assistance under such grant.
(2) Audits.--A State shall require each covered entity
receiving assistance under the grant awarded under this
section to conduct an annual audit with respect to the
activities of the covered entity. Such audits shall be
submitted to the State.
(3) Misuse of funds.--
(A) Repayment.--If the State determines, through an audit
or otherwise, that a covered entity receiving assistance
under a grant awarded under this section has misused the
assistance, the State shall notify the Secretary of the
misuse. The Secretary, upon such a notification, may seek
from such a covered entity the repayment of an amount equal
to the amount of any such misused assistance plus interest.
(B) Appeals process.--The Secretary shall by regulation
provide for an appeals process with respect to repayments
under this paragraph.
(i) Reporting Requirements.--
(1) 2-year study.--
(A) In general.--Not later than 2 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine--
(i) the capacity of covered entities to meet the child care
needs of communities within States;
(ii) the kinds of consortia that are being formed with
respect to child care at the local level to carry out
programs funded under this section; and
(iii) who is using the programs funded under this section
and the income levels of such individuals.
(B) Report.--Not later than 28 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(2) 4-year study.--
(A) In general.--Not later than 4 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine the number
of child care facilities that are funded through covered
entities that received assistance through a grant awarded
under this section and that remain in operation, and the
extent to which such facilities are meeting the child care
needs of the individuals served by such facilities.
(B) Report.--Not later than 52 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(j) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity'' means a
small business or a consortium formed in accordance with
subsection (d)(3).
(2) Indian community.--The term ``Indian community'' means
a community served by an Indian tribe or tribal organization.
(3) Indian tribe; tribal organization.--The terms ``Indian
tribe'' and ``tribal organization'' have the meanings given
the terms in section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n).
(4) Small business.--The term ``small business'' means an
employer who employed an average of at least 2 but not more
than 50 employees on the business days during the preceding
calendar year.
(5) State.--The term ``State'' has the meaning given the
term in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n).
(k) Application to Indian Tribes and Tribal
Organizations.--In this section:
(1) In general.--Except as provided in subsection (f)(1),
and in paragraphs (2) and (3), the term ``State'' includes an
Indian tribe or tribal organization.
(2) Geographic references.--The term ``State'' includes an
Indian community in subsections (c) (the second and third
place the term appears), (d)(1) (the second place the term
appears), (d)(3)(A) (the second place the term appears), and
(i)(1)(A)(i).
(3) State-level activities.--The term ``State-level
activities'' includes activities at the tribal level.
(l) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section, $50,000,000 for the period of fiscal
years 2008 through 2012.
(2) Studies and administration.--With respect to the total
amount appropriated for such period in accordance with this
subsection, not more than $2,500,000 of that amount may be
used for expenditures related to conducting studies required
under, and the administration of, this section.
(m) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2012.
SEC. 563. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF EARNED
INCOME CREDIT.
Not later than 180 days after the date of the enactment of
this Act, the Secretary of the Treasury shall report to
Congress on a study of the benefits, costs, risks, and
barriers to workers and to businesses (with a special
emphasis on small businesses) if the advance earned income
tax credit program (under section 3507 of the Internal
Revenue Code of 1986) included all recipients of the earned
income tax credit (under section 32 of such Code) and what
steps would be necessary to implement such inclusion.
SEC. 564. SENSE OF THE SENATE CONCERNING PERSONAL SAVINGS.
(a) Findings.--The Senate finds that--
(1) the personal saving rate in the United States is at its
lowest point since the Great Depression, with the rate having
fallen into negative territory;
(2) the United States ranks at the bottom of the Group of
Twenty (G-20) nations in terms of net national saving rate;
(3) approximately half of all the working people of the
United States work for an employer that does not offer any
kind of retirement plan;
(4) existing savings policies enacted by Congress provide
limited incentives to save for low- and moderate-income
families; and
[[Page S4130]]
(5) the Social Security program was enacted to serve as the
safest component of a retirement system that also includes
employer-sponsored retirement plans and personal savings.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) Congress should enact policies that promote savings
vehicles for retirement that are simple, easily accessible
and provide adequate financial security for all the people of
the United States;
(2) it is important to begin retirement saving as early as
possible to take full advantage of the power of compound
interest; and
(3) regularly contributing money to a financially-sound
investment account is one important method for helping to
achieve one's retirement goals.
SEC. 565. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.
(a) In General.--Section 29 of the Small Business Act (15
U.S.C. 656) is amended by adding at the end the following:
``(m) Continued Funding for Centers.--
``(1) In general.--A nonprofit organization described in
paragraph (2) shall be eligible to receive, subject to
paragraph (3), a 3-year grant under this subsection.
``(2) Applicability.--A nonprofit organization described in
this paragraph is a nonprofit organization that has received
funding under subsection (b) or (l).
``(3) Application and approval criteria.--
``(A) Criteria.--Subject to subparagraph (B), the
Administrator shall develop and publish criteria for the
consideration and approval of applications by nonprofit
organizations under this subsection.
``(B) Contents.--Except as otherwise provided in this
subsection, the conditions for participation in the grant
program under this subsection shall be the same as the
conditions for participation in the program under subsection
(l), as in effect on the date of enactment of this Act.
``(C) Notification.--Not later than 60 days after the date
of the deadline to submit applications for each fiscal year,
the Administrator shall approve or deny any application under
this subsection and notify the applicant for each such
application.
``(4) Award of grants.--
``(A) In general.--Subject to the availability of
appropriations, the Administrator shall make a grant for the
Federal share of the cost of activities described in the
application to each applicant approved under this subsection.
``(B) Amount.--A grant under this subsection shall be for
not more than $150,000, for each year of that grant.
``(C) Federal share.--The Federal share under this
subsection shall be not more than 50 percent.
``(D) Priority.--In allocating funds made available for
grants under this section, the Administrator shall give
applications under this subsection or subsection (l) priority
over first-time applications under subsection (b).
``(5) Renewal.--
``(A) In general.--The Administrator may renew a grant
under this subsection for additional 3-year periods, if the
nonprofit organization submits an application for such
renewal at such time, in such manner, and accompanied by such
information as the Administrator may establish.
``(B) Unlimited renewals.--There shall be no limitation on
the number of times a grant may be renewed under subparagraph
(A).
``(n) Privacy Requirements.--
``(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving assistance
under this section without the consent of such individual or
small business concern, unless--
``(A) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal enforcement
action initiated by a Federal or State agency; or
``(B) the Administrator considers such a disclosure to be
necessary for the purpose of conducting a financial audit of
a women's business center, but a disclosure under this
subparagraph shall be limited to the information necessary
for such audit.
``(2) Administration use of information.--This subsection
shall not--
``(A) restrict Administration access to program activity
data; or
``(B) prevent the Administration from using client
information (other than the information described in
subparagraph (A)) to conduct client surveys.
``(3) Regulations.--The Administrator shall issue
regulations to establish standards for requiring disclosures
during a financial audit under paragraph (1)(B).''.
(b) Repeal.--Section 29(l) of the Small Business Act (15
U.S.C. 656(l)) is repealed effective October 1 of the first
full fiscal year after the date of enactment of this Act.
(c) Transitional Rule.--Notwithstanding any other provision
of law, a grant or cooperative agreement that was awarded
under subsection (l) of section 29 of the Small Business Act
(15 U.S.C. 656), on or before the day before the date
described in subsection (b) of this section, shall remain in
full force and effect under the terms, and for the duration,
of such grant or agreement.
SEC. 566. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.
Section 2 of the Buy American Act (41 U.S.C. 10a) is
amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(a) In General.--Notwithstanding''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the end of
each of fiscal years 2007 through 2011, the head of each
Federal agency shall submit to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Government Reform of the House of
Representatives a report on the amount of the acquisitions
made by the agency in that fiscal year of articles,
materials, or supplies purchased from entities that
manufacture the articles, materials, or supplies outside of
the United States.
``(2) Contents of report.--The report required by paragraph
(1) shall separately include, for the fiscal year covered by
such report--
``(A) the dollar value of any articles, materials, or
supplies that were manufactured outside the United States;
``(B) an itemized list of all waivers granted with respect
to such articles, materials, or supplies under this Act, and
a citation to the treaty, international agreement, or other
law under which each waiver was granted;
``(C) if any articles, materials, or supplies were acquired
from entities that manufacture articles, materials, or
supplies outside the United States, the specific exception
under this section that was used to purchase such articles,
materials, or supplies; and
``(D) a summary of--
``(i) the total procurement funds expended on articles,
materials, and supplies manufactured inside the United
States; and
``(ii) the total procurement funds expended on articles,
materials, and supplies manufactured outside the United
States.
``(3) Public availability.--The head of each Federal agency
submitting a report under paragraph (1) shall make the report
publicly available to the maximum extent practicable.
``(4) Exception for intelligence community.--This
subsection shall not apply to acquisitions made by an agency,
or component thereof, that is an element of the intelligence
community as specified in, or designated under, section 3(4)
of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
SEC. 567. SENSE OF THE SENATE REGARDING REPEAL OF 1993 INCOME
TAX INCREASE ON SOCIAL SECURITY BENEFITS.
It is the sense of the Senate that Congress should repeal
the 1993 tax increase on Social Security benefits and
eliminate wasteful spending, such as spending on unnecessary
tax loopholes, in order to fully offset the cost of such
repeal and avoid forcing taxpayers to pay substantially more
interest to foreign creditors.
SEC. 568. SENSE OF THE SENATE REGARDING PERMANENT TAX
INCENTIVES TO MAKE EDUCATION MORE AFFORDABLE
AND MORE ACCESSIBLE FOR AMERICAN FAMILIES.
It is the sense of the Senate that Congress should make
permanent the tax incentives to make education more
affordable and more accessible for American families and
eliminate wasteful spending, such as spending on unnecessary
tax loopholes, in order to fully offset the cost of such
incentives and avoid forcing taxpayers to pay substantially
more interest to foreign creditors.
SEC. 569. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.
Section 274A(e) of the Immigration and Nationality Act (8
U.S.C. 1324a(e)) is amended by adding at the end the
following new paragraph:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) and the Administrator of General
Services shall list the employer on the List of Parties
Excluded from Federal Procurement and Nonprocurement Programs
for a period of 7 years.
``(iii) Waiver.--
``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.
``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, in
cooperation with the Administrator of General Services, shall
advise any agency or department holding a contract, grant, or
cooperative agreement with the employer of
[[Page S4131]]
the Government's intention to debar the employer from the
receipt of new Federal contracts, grants, or cooperative
agreements for a period of 10 years.
``(iii) Waiver.--
``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.
``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.
SEC. 570. DISABILITY PREFERENCE PROGRAM FOR TAX COLLECTION
CONTRACTS.
(a) In General.--Section 6306 (relating to qualified tax
collection contracts) is amended--
(1) by striking ``Nothing'' in subsection (a) and inserting
``Except as provided in subsection (c), nothing'',
(2) by redesignating subsections (c), (d), (e), and (f) as
subsections (d), (e), (f), and (g), respectively, and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Disability Preference Program for Tax Collection
Contracts.--
``(1) In general.--The Secretary shall provide a qualifying
disability preference to any program under which any
qualified tax collection contract is awarded on or after the
effective date of this subsection and shall ensure compliance
with the requirements of paragraph (3).
``(2) Qualifying disability preference.--
``(A) In general.--For purposes of this subsection, the
term `qualifying disability preference' means a preference
pursuant to which at least 10 percent (in both number and
aggregate dollar amount) of the accounts covered by qualified
tax collection contracts are awarded to persons satisfying
the following criteria:
``(i) Such person employs within the United States at least
50 severely disabled individuals.
``(ii) Such person shall agree as an enforceable condition
of its bid for a qualified tax collection contract that
within 90 days after the date such contract is awarded, not
less than 35 percent of the employees of such person employed
in connection with providing services under such contract
shall--
``(I) be hired after the date such contract is awarded, and
``(II) be severely disabled individuals.
``(B) Determination of satisfaction of criteria.--Within 60
days after the end of the period specified in subparagraph
(A)(ii), the Secretary shall determine whether such person
has met the 35 percent requirement specified in such
subparagraph, and if such requirement has not been met, shall
terminate the contract for nonperformance. For purposes of
determining whether such 35 percent requirement has been
satisfied, severely disabled individuals providing services
under such contract shall not include any severely disabled
individuals who were counted toward satisfaction of the 50-
employee requirement specified in subparagraph (A)(i), unless
such person replaced such individuals by hiring additional
severely disabled individuals who do not perform services
under such contract.
``(3) Program-wide employment of severely disabled
individuals.--Not less than 15 percent of all individuals
hired by all persons to whom tax collection contracts are
issued by the Secretary under this section, to perform work
under such tax collection contracts, shall qualify as
severely disabled individuals.
``(4) Severely disabled individual.--For purposes of this
subsection, the term `severely disabled individual' means any
one of the following:
``(A) Any veteran of the United States Armed Forces with--
``(i) a disability determined by the Secretary of Veterans
Affairs to be service-connected, or
``(ii) a disability deemed by statute to be service-
connected.
``(B) Any individual who is a disabled beneficiary (as
defined in section 1148(k)(2) of the Social Security Act (42
U.S.C. 1320b-19(k)(2)) or who would be considered to be such
a disabled beneficiary but for having income or assets in
excess of the income or asset eligibility limits established
under title II or XVI of the Social Security Act,
respectively.''.
(b) Report by Government Accountability Office.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the effectiveness and
efficiency of the use of private contractors for Internal
Revenue Service debt collection. The study required by this
paragraph shall be completed in time to be taken into account
by Congress before any new contracting is carried out under
section 6306 of the Internal Revenue Code of 1986 in years
following 2008.
(2) Study of comparable efforts.--As part of the study
required under paragraph (1), the Comptroller General shall--
(A) make every effort to determine the relative
effectiveness and efficiency of debt collection contracting
by Federal staff compared to private contractors, using a
cost calculation for both Federal staff and private
contractors which includes all benefits and overhead costs,
(B) compare the cost effectiveness of the contracting
approach of the Department of the Treasury to that of the
Department of Education's Office of Student Financial
Assistance, and
(C) survey State tax debt collection experiences for
lessons that may be applicable to the Internal Revenue
Service collection efforts.
(c) Effective Date.--The amendments made by this section
shall apply to any tax collection contract awarded on or
after the date of the enactment of this Act.
This Act may be cited as the ``U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007''.
Mrs. MURRAY. Mr. President, I move to reconsider the vote.
Mr. COCHRAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. REID. Mr. President, there will be no more votes today. I express
my appreciation to the managers of the bill. Senator Byrd, because of
his other responsibilities, couldn't be here. The Senator from
Washington, Mrs. Murray, worked hard on this bill. She has done a
wonderful job. We are all indebted to her. Senator Thad Cochran is
always very good, thorough, direct, and to the point. We appreciate
very much his being the person he is.
The PRESIDING OFFICER. The Senator from Washington is recognized.
Mrs. MURRAY. Mr. President, I ask unanimous consent that the Senate
insist on its amendments, request a conference with the House on the
disagreeing votes of the two Houses, and the Chair be authorized to
appoint conferees with a ratio of 15 to 14.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Republican leader is recognized.
Mr. McCONNELL. Mr. President, let me also congratulate Senator Murray
for her work and particularly my good friend, the ranking member of the
Appropriations Committee, Senator Cochran, for his usual flawless
effort in moving legislation across the floor. This was a challenging
bill with a lot of interesting issues that divide the Senate in many
ways. I express my gratitude and appreciation for the fine work of
Senator Cochran.
Mr. REID. Mr. President, on behalf of the majority, I know conferees
will be all of the Democratic members of the Appropriations Committee.
Mr. McCONNELL. Mr. President, I will also be sending a list of
conferees to the Chair.
____________________