[Congressional Record Volume 153, Number 194 (Tuesday, December 18, 2007)]
[Senate]
[Pages S15926-S15934]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3870. Mr. ISAKSON (for himself and Mr. Chambliss) submitted an 
amendment intended to be proposed by him to the bill H.R. 2764, making 
appropriations for the Department of State, foreign operations, and 
related programs for the fiscal year ending September 30, 2008, and for 
other purposes; which was ordered to lie on the table; as follows:

       In division C, strike section 134.
                                 ______
                                 
  SA 3871. Mr. BURR (for himself and Mr. Gregg) submitted an amendment 
intended to be proposed by him to the bill H.R. 2764, making 
appropriations for the Department of State, foreign operations, and 
related programs for the fiscal year ending September 30, 2008, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 806, line 16, strike ``$666,087,000'' and insert 
     ``$751,087,000''.
       On page 806, line 20, strike ``$103,921,000'' and insert 
     ``$188,921,000''.
       On page 822, between lines 18 and 19, insert the following:
       Sec. __.  Notwithstanding any other provision of this Act, 
     amounts appropriated in this Act for the administration and 
     related expenses for the departmental management of the 
     Department of Labor, the Department of Health and Human 
     Services, and the Department of Education shall be reduced by 
     a pro rata percentage required to reduce the total amount 
     appropriated in this Act by $85,000,000.
                                 ______
                                 
  SA 3872. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill H.R. 2764, making appropriations for the Department of 
State, foreign operations, and related programs for the fiscal year 
ending September 30, 2008, and for other purposes; which was ordered to 
lie on the table; as follows:

       In the mater under the heading ``nuclear energy'' of title 
     III of division C, strike ``: Provided, That $233,849,000 is 
     authorized to be appropriated for Project 99-D-143 Mixed 
     Oxide (MOX) Fuel Fabrication Facility, Savannah River Site, 
     South Carolina: Provided further, That the Department of 
     Energy adhere strictly to Department of Energy Order 413.3A 
     for Project 99-D-143''.

[[Page S15927]]

       In the mater under the heading ``national nuclear security 
     administration'' of title III of division C, before the 
     period at the end, insert the following: ``: Provided 
     further, That $233,849,000 is authorized to be appropriated 
     for Project 99-D-143 Mixed Oxide (MOX) Fuel Fabrication 
     Facility, Savannah River Site, South Carolina: Provided 
     further, That the Department of Energy adhere strictly to 
     Department of Energy Order 413.3A for Project 99-D-143''.
                                 ______
                                 
  SA 3873. Mr. WARNER (for himself and Ms. Mikulski, Mr. Graham, Mr. 
Gregg, Mr. Leahy, Mr. Sununu, Mr. Barrasso, and Mr. Voinovich) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2764, making appropriations for the Department of State, foreign 
operations, and related programs for the fiscal year ending September 
30, 2008, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SMALL AND SEASONAL BUSINESSES.

       (a) Short Title.--This section may be cited as the ``Save 
     our Small and Seasonal Businesses Act of 2007''.
       (b) In General.--Section 214(g)(9)(A) of the Immigration 
     and Nationality Act (8 U.S.C. 1184(g)(9)(A)) is amended, by 
     striking ``an alien who has already been counted toward the 
     numerical limitation of paragraph (1)(B) during fiscal year 
     2004, 2005, or 2006 shall not again be counted toward such 
     limitation during fiscal year 2007.'' and inserting ``an 
     alien who has been present in the United States as an H-2B 
     nonimmigrant during any 1 of the 3 fiscal years immediately 
     preceding the fiscal year of the approved start date of a 
     petition for a nonimmigrant worker described in section 
     101(a)(15)(H)(ii)(b) shall not be counted toward such 
     limitation for the fiscal year in which the petition is 
     approved.''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall be effective during the 1-year period beginning on 
     October 1, 2007.
                                 ______
                                 
  SA 3874. Mr. McConnell (for himself, Mr. Lieberman, Mr. Inouye, Mr. 
Stevens, Mr. Cochran, and Mr. Warner) proposed an amendment to the bill 
H.R. 2764, making appropriations for the Department of State, foreign 
operations, and related programs for the fiscal year ending September 
30, 2008, and for other purposes; as follows:

       Strike Division L and insert the following:

            DIVISION L--SUPPLEMENTAL APPROPRIATIONS, DEFENSE

                      TITLE I--MILITARY PERSONNEL

                           MILIARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $782,500,000.

                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $95,624,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $56,050,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $138,037,000.

                  TITLE II--OPERATION AND MAINTENANCE

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $35,152,370,000.

                    Operation and Maintenance, Navy

                     (including transfers of funds)

       For an additional amount for ``Operation and Maintenance, 
     Navy'', $3,664,000,000: Provided, That up to $110,000,000 
     shall be transferred to the Coast Guard ``Operating 
     Expenses'' account.

                Operation and Maintenance, Marine Corps

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps'', $3,965,638,000.

                  Operation and Maintenance, Air Force

       For an additional amount for ``Operation and Maintenance, 
     Air Force'', $4,778,000,000.

                Operation and Maintenance, Defense-Wide

       For an additional amount for ``Operation and Maintenance, 
     Defense-Wide'', $2,116,950,000, of which up to $300,000,000, 
     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, or to be 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'', $77,736,000.

                Operation and Maintenance, Navy Reserve

       For an additional amount for ``Operation and Maintenance, 
     Navy Reserve'', $41,657,000.

            Operation and Maintenance, Marine Corps Reserve

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps Reserve'', $46,153,000.

             Operations and Maintenance, Air Force Reserve

       For an additional amount for ``Operation and Maintenance, 
     Air Force Reserve'', $12,133,000.

             Operation and Maintenance, Army National Guard

       For an additional amount for ``Operation and Maintenance, 
     Army National Guard'', $327,000,000.

             Operation and Maintenance, Air National Guard

       For an additional amount for ``Operation and Maintenance, 
     Air National Guard'', $51,634,000.

                           Iraq Freedom Fund

                     (including transfer of funds)

       For an additional amount for ``Iraq Freedom Fund'', 
     $3,747,327,000, to remain available for transfer until 
     September 30, 2009, only to support operations in Iraq or 
     Afghanistan: Provided, That the Secretary of Defense may 
     transfer the funds provided herein to appropriations for 
     military personnel; operation and maintenance; Overseas 
     Humanitarian, Disaster, and Civic Aid; procurement; research, 
     development, test and evaluation; and working capital funds: 
     Provided further, That funds transferred shall be merged with 
     and be available for the same purposes and for the same time 
     period as the appropriation or fund to which transferred: 
     Provided further, That this transfer authority 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: 
     Provided further, That the Secretary of Defense shall, not 
     fewer than 5 days prior to making transfers from this 
     appropriation, notify the congressional defense committees in 
     writing of the details of any such transfer: Provided 
     further, That the Secretary shall submit a report no later 
     than 30 days after the end of each fiscal quarter to the 
     congressional defense committees summarizing the details of 
     the transfer of funds from this appropriation.

                    Afghanistan Security Forces Fund

                     (including transfer of funds)

       For the ``Afghanistan Security Forces Fund'', 
     $1,350,000,000, to remain available until September 30, 2009: 
     Provided, That such funds shall be available to the Secretary 
     of Defense, notwithstanding any other provision of law, for 
     the purpose of allowing the Commander, Office of Security 
     Cooperation-Afghanistan, or the Secretary's designee, to 
     provide assistance, with the concurrence of the Secretary of 
     State, to the security forces of Afghanistan, including the 
     provision of equipment, supplies, services, training, 
     facility and infrastructure repair, renovation, and 
     construction, and funding: Provided further, That the 
     authority to provide assistance under this heading is in 
     addition to any other authority to provide assistance to 
     foreign nations: Provided further, That the Secretary of 
     Defense may transfer such funds to appropriations for 
     military personnel; operation and maintenance; Overseas 
     Humanitarian, Disaster, and Civic Aid; procurement; research, 
     development, test and evaluation; and defense working capital 
     funds to accomplish the purposes provided herein: Provided 
     further, That this transfer authority 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 so transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation: 
     Provided further, That contributions of funds for the 
     purposes provided herein from any person, foreign government, 
     or international organization may be credited to this Fund, 
     and used for such purposes: Provided further, That the 
     Secretary shall notify the congressional defense committees 
     in writing upon the receipt and upon the transfer of any 
     contribution delineating the sources and amounts of the funds 
     received and the specific use of such contributions: Provided 
     further, That the Secretary of Defense shall, not fewer than 
     five days prior to making transfers from this appropriation 
     account, notify the congressional defense committees in 
     writing of the details of any such transfer: Provided 
     further, That the Secretary shall submit a report no later 
     than 30 days after the end of each fiscal quarter to the 
     congressional defense committees summarizing the details of 
     the transfer of funds from this appropriation.

                       Iraq Security Forces Fund

                     (including transfer of funds)

       For the ``Iraq Security Forces Fund'', $1,500,000,000, to 
     remain available until September 30, 2009: Provided, That 
     such funds shall be available to the Secretary of Defense, 
     notwithstanding any other provision of law, for the purpose 
     of allowing the Commander, Multi-National Security Transition

[[Page S15928]]

     Command-Iraq, or the Secretary's designee, to provide 
     assistance, with the concurrence of the Secretary of State, 
     to the security forces of Iraq, including the provision of 
     equipment, supplies, services, training, facility and 
     infrastructure repair, renovation, and construction, and 
     funding: Provided further, That the authority to provide 
     assistance under this heading is in addition to any other 
     authority to provide assistance to foreign nations: Provided 
     further, That the Secretary of Defense may transfer such 
     funds to appropriations for military personnel; operation and 
     maintenance; Overseas Humanitarian, Disaster, and Civic Aid; 
     procurement; research, development, test and evaluation; and 
     defense working capital funds to accomplish the purposes 
     provided herein: Provided further, That this transfer 
     authority 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 so 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation: Provided further, That 
     contributions of funds for the purposes provided herein from 
     any person, foreign government, or international organization 
     may be credited to this Fund, and used for such purposes: 
     Provided further, That the Secretary shall notify the 
     congressional defense committees in writing upon the receipt 
     and upon the transfer of any contribution delineating the 
     sources and amounts of the funds received and the specific 
     use of such contributions: Provided further, That the 
     Secretary of Defense shall, not fewer than five days prior to 
     making transfers from this appropriation account, notify the 
     congressional defense committees in writing of the details of 
     any such transfer: Provided further, That the Secretary shall 
     submit a report no later than 30 days after the end of each 
     fiscal quarter to the congressional defense committees 
     summarizing the details of the transfer of funds from this 
     appropriation.

             Joint Improvised Explosive Device Defeat Fund

                     (including transfer of funds)

       For the ``Joint Improvised Explosive Device Defeat Fund'', 
     $4,269,000,000, to remain available until September 30, 2010: 
     Provided, That such funds shall be available to the Secretary 
     of Defense, notwithstanding any other provision of law, for 
     the purpose of allowing the Director of the Joint Improvised 
     Explosive Device Defeat Organization to investigate, develop 
     and provide equipment, supplies, services, training, 
     facilities, personnel and funds to assist United States 
     forces in the defeat of improvised explosive devices: 
     Provided further, That within 60 days of the enactment of 
     this Act, a plan for the intended management and use of the 
     Fund is provided to the congressional defense committees: 
     Provided further, That the Secretary of Defense shall submit 
     a report not later than 30 days after the end of each fiscal 
     quarter to the congressional defense committees providing 
     assessments of the evolving threats, individual service 
     requirements to counter the threats, the current strategy for 
     predeployment training of members of the Armed Forces on 
     improvised explosive devices, and details on the execution of 
     this Fund: Provided further, That the Secretary of Defense 
     may transfer funds provided herein to appropriations for 
     military personnel; operation and maintenance; procurement; 
     research, development, test and evaluation; and defense 
     working capital funds to accomplish the purpose provided 
     herein: Provided further, That this transfer authority is in 
     addition to any other transfer authority available to the 
     Department of Defense: Provided further, That upon 
     determination that all or part of the funds so transferred 
     from this appropriation are not necessary for the purpose 
     provided herein, such amounts may be transferred back to this 
     appropriation: Provided further, That the Secretary of 
     Defense shall, not fewer than 5 days prior to making 
     transfers from this appropriation, notify the congressional 
     defense committees in writing of the details of any such 
     transfer.

                         TITLE III--PROCUREMENT

                              PROCUREMENT

                       Aircraft Procurement, Army

       For an additional amount for ``Aircraft Procurement, 
     Army'', $943,600,000, to remain available for obligation 
     until September 30, 2010.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For an additional amount for ``Procurement of Weapons and 
     Tracked Combat Vehicles, Army'', $1,429,445,000, to remain 
     available for obligation until September 30, 2010.

                    Procurement of Ammunition, Army

       For an additional amount for ``Procurement of Ammunition, 
     Army'', $154,000,000, to remain available for obligation 
     until September 30, 2010.

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $2,027,800,000, to remain available for obligation until 
     September 30, 2010.

                       Aircraft Procurement, Navy

       For an additional amount for ``Aircraft Procurement, 
     Navy'', $48,500,000, to remain available for obligation until 
     September 30, 2010.

            Procurement of Ammunition, Navy and Marine Corps

       For an additional amount for ``Procurement of Ammunition, 
     Navy and Marine Corps'', $304,945,000, to remain available 
     for obligation until September 30, 2010.

                        Other Procurement, Navy

       For an additional amount for ``Other Procurement, Navy'', 
     $91,481,000, to remain available for obligation until 
     September 30, 2010.

                       Procurement, Marine Corps

       For an additional amount for ``Procurement, Marine Corps'', 
     $703,250,000, to remain available for obligation until 
     September 30, 2010.

                    Aircraft Procurement, Air Force

       For an additional amount for ``Aircraft Procurement, Air 
     Force'', $51,400,000, to remain available for obligation 
     until September 30, 2010.

                      Other Procurement, Air Force

       For an additional amount for ``Other Procurement, Air 
     Force'', $30,725,000, to remain available for obligation 
     until September 30, 2010.

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $274,743,000, to remain available for obligation until 
     September 30, 2010.

                TITLE IV--REVOLVING AND MANAGEMENT FUNDS

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For an additional amount of ``Defense Working Capital 
     Funds'', $1,000,000,000, to remain available for obligation 
     until September 30, 2010.

             TITLE V--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For an additional amount for ``Defense Health Program'', 
     $575,701,000 for Operation and maintenance.

         Drug Interdiction and Counter-Drug Activities, Defense

       For an additional amount for ``Drug Interdiction and 
     Counter-Drug Activities, Defense'', $192,601,000.

                      TITLE VI--GENERAL PROVISIONS

                           GENERAL PROVISIONS

       Sec. 601.  Appropriations provided in this division are 
     available for obligation until September 30, 2008, unless 
     otherwise so provided in this division.
       Sec. 602.  Notwithstanding any other provision of law or of 
     this division, funds made available in this division are in 
     addition to amounts appropriated or otherwise made available 
     for the Department of Defense for fiscal year 2008.

                          (TRANSFER OF FUNDS)

       Sec. 603.  Upon the determination of the Secretary of 
     Defense that such action is necessary in the national 
     interest, the Secretary may transfer between appropriations 
     up to $4,000,000,000 of the funds made available to the 
     Department of Defense in this division: 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.
       Sec. 604.  Funds appropriated in this division, or made 
     available by the transfer of funds in or pursuant to this 
     division, for intelligence activities are deemed to be 
     specifically authorized by the Congress for purposes of 
     section 504 of the National Security Act of 1947 (50 U.S.C. 
     414).
       Sec. 605.  None of the funds provided in this division may 
     be used to finance programs or activities denied by Congress 
     in fiscal years 2007 or 2008 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. 606. (a) Availability of Funds for CERP.--From funds 
     made available in this division to the Department of Defense, 
     not to exceed $500,000,000 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 to respond to urgent humanitarian relief 
     and reconstruction requirements within their areas of 
     responsibility by carrying out programs that will immediately 
     assist the Iraqi people, and to fund a similar program to 
     assist the people of Afghanistan.
       (b) Quarterly Reports.--Not later than 15 days after the 
     end of each fiscal year quarter (beginning with the first 
     quarter of fiscal year 2008), 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. 607.  During the current fiscal year, funds available 
     to the Department of Defense for operation and maintenance 
     may be used, notwithstanding any other provision of law,

[[Page S15929]]

     to provide supplies, services, transportation, including 
     airlift and sealift, and other logistical support to 
     coalition forces supporting military and stability operations 
     in Iraq and Afghanistan: Provided, That the Secretary of 
     Defense shall provide quarterly reports to the congressional 
     defense committees regarding support provided under this 
     section.
       Sec. 608.  During fiscal year 2008, supervision and 
     administration costs associated with projects carried out 
     with funds appropriated to ``Afghanistan Security Forces 
     Fund'' or ``Iraq Security Forces Fund'' in this division 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. 609. (a) Reports on Progress Toward Stability in 
     Iraq.--Not later than 60 days after the date of the enactment 
     of this Act and every 90 days thereafter through the end of 
     fiscal year 2008, the Secretary of Defense shall set forth in 
     a report to Congress a comprehensive set of performance 
     indicators and measures for progress toward military and 
     political stability in Iraq.
       (b) Scope of Reports.--Each report shall include 
     performance standards and goals for security, economic, and 
     security force training objectives in Iraq together with a 
     notional timetable for achieving these goals.
       (c) Specific Elements.--In specific, each report shall 
     require, at a minimum, the following:
       (1) With respect to stability and security in Iraq, the 
     following:
       (A) Key measures of political stability, including the 
     important political milestones that must be achieved over the 
     next several years.
       (B) The primary indicators of a stable security environment 
     in Iraq, such as number of engagements per day, numbers of 
     trained Iraqi forces, and trends relating to numbers and 
     types of ethnic and religious-based hostile encounters.
       (C) An assessment of the estimated strength of the 
     insurgency in Iraq and the extent to which it is composed of 
     non-Iraqi fighters.
       (D) A description of all militias operating in Iraq, 
     including the number, size, equipment strength, military 
     effectiveness, sources of support, legal status, and efforts 
     to disarm or reintegrate each militia.
       (E) Key indicators of economic activity that should be 
     considered the most important for determining the prospects 
     of stability in Iraq, including--
       (i) unemployment levels;
       (ii) electricity, water, and oil production rates; and
       (iii) hunger and poverty levels.
       (F) The criteria the Administration will use to determine 
     when it is safe to begin withdrawing United States forces 
     from Iraq.
       (2) With respect to the training and performance of 
     security forces in Iraq, the following:
       (A) The training provided Iraqi military and other Ministry 
     of Defense forces and the equipment used by such forces.
       (B) Key criteria for assessing the capabilities and 
     readiness of the Iraqi military and other Ministry of Defense 
     forces, goals for achieving certain capability and readiness 
     levels (as well as for recruiting, training, and equipping 
     these forces), and the milestones and notional timetable for 
     achieving these goals.
       (C) The operational readiness status of the Iraqi military 
     forces, including the type, number, size, and organizational 
     structure of Iraqi battalions that are--
       (i) capable of conducting counterinsurgency operations 
     independently;
       (ii) capable of conducting counterinsurgency operations 
     with the support of United States or coalition forces; or
       (iii) not ready to conduct counterinsurgency operations.
       (D) The rates of absenteeism in the Iraqi military forces 
     and the extent to which insurgents have infiltrated such 
     forces.
       (E) The training provided Iraqi police and other Ministry 
     of Interior forces and the equipment used by such forces.
       (F) Key criteria for assessing the capabilities and 
     readiness of the Iraqi police and other Ministry of Interior 
     forces, goals for achieving certain capability and readiness 
     levels (as well as for recruiting, training, and equipping), 
     and the milestones and notional timetable for achieving these 
     goals, including--
       (i) the number of police recruits that have received 
     classroom training and the duration of such instruction;
       (ii) the number of veteran police officers who have 
     received classroom instruction and the duration of such 
     instruction;
       (iii) the number of police candidates screened by the Iraqi 
     Police Screening Service, the number of candidates derived 
     from other entry procedures, and the success rates of those 
     groups of candidates;
       (iv) the number of Iraqi police forces who have received 
     field training by international police trainers and the 
     duration of such instruction; and
       (v) attrition rates and measures of absenteeism and 
     infiltration by insurgents.
       (G) The estimated total number of Iraqi battalions needed 
     for the Iraqi security forces to perform duties now being 
     undertaken by coalition forces, including defending the 
     borders of Iraq and providing adequate levels of law and 
     order throughout Iraq.
       (H) The effectiveness of the Iraqi military and police 
     officer cadres and the chain of command.
       (I) The number of United States and coalition advisors 
     needed to support the Iraqi security forces and associated 
     ministries.
       (J) An assessment, in a classified annex if necessary, of 
     United States military requirements, including planned force 
     rotations, through the end of calendar year 2008.
       Sec. 610.  Each amount appropriated or otherwise made 
     available in this division is designated as an emergency 
     requirement and necessary to meet emergency needs pursuant to 
     subsections (a) and (b) of section 204 of S. Con. Res. 21 
     (110th Congress), the concurrent resolution on the budget for 
     fiscal year 2008.
       Sec. 611.  None of the funds appropriated or otherwise made 
     available by this division may be obligated or expended to 
     provide award fees to any defense contractor for performance 
     that does not meet the requirements of the contract.
       Sec. 612.  No funds appropriated or otherwise made 
     available by this division may be used by the Government of 
     the United States to enter into an agreement with the 
     Government of Iraq that would subject members of the Armed 
     Forces of the United States to the jurisdiction of Iraq 
     criminal courts or punishment under Iraq law.
       Sec. 613.  Notwithstanding any other provision of law, the 
     Secretary of the Army may reimburse a member for expenses 
     incurred by the member or family member when such expenses 
     are otherwise not reimbursable under law: Provided, That such 
     expenses must have been incurred in good faith as a direct 
     consequence of reasonable preparation for, or execution of, 
     military orders: Provided further, That reimbursement under 
     this section shall be allowed only in situations wherein 
     other authorities are insufficient to remedy a hardship 
     determined by the Secretary, and only when the Secretary 
     determines that reimbursement of the expense is in the best 
     interest of the member and the United States.
       Sec. 614.  In this division, the term ``congressional 
     defense committees'' means--
       (1) the Committees on Armed Services and Appropriations of 
     the Senate; and
       (2) the Committees on Armed Services and Appropriations of 
     the House of Representatives.
       Sec. 615.  This division may be cited as the ``Emergency 
     Supplemental Appropriations Act for Defense, 2008''.
                                 ______
                                 
  SA 3875. Mr. FEINGOLD (for himself, Mr. Reid, Mr. Leahy, Mr. Dodd, 
Mrs. Boxer, Mr. Kennedy, Mr. Kerry, Mr. Harkin, Mr. Whitehouse, Mr. 
Wyden, Mr. Durbin, Mr. Schumer, Mr. Obama, Mr. Sanders, Mr. Menendez, 
Mr. Lautenberg, Mr. Brown, and Mrs. Clinton) proposed an amendment to 
amendment SA 3874 proposed by Mr. McConnell (for himself, Mr. 
Lieberman, Mr. Inouye, Mr. Stevens, Mr. Cochran, and Mr. Warner) to the 
bill H.R. 2764, making appropriations for the Department of State, 
foreign operations, and related programs for the fiscal year ending 
September 30, 2008, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. __. SAFE REDEPLOYMENT OF UNITED STATES TROOPS FROM IRAQ.

       (a) Transition of Mission.--The President shall promptly 
     transition the mission of the United States Armed Forces in 
     Iraq to the limited and temporary purposes set forth in 
     subsection (d).
       (b) Commencement of Safe, Phased Redeployment From Iraq.--
     The President shall commence the safe, phased redeployment of 
     members of the United States Armed Forces from Iraq who are 
     not essential to the limited and temporary purposes set forth 
     in subsection (d). Such redeployment shall begin not later 
     than 90 days after the date of the enactment of this Act, and 
     shall be carried out in a manner that protects the safety and 
     security of United States troops.
       (c) Use of Funds.--No funds appropriated or otherwise made 
     available under any provision of law may be obligated or 
     expended to continue the deployment in Iraq of members of the 
     United States Armed Forces after the date that is nine months 
     after the date of the enactment of this Act.
       (d) Except for Limited and Temporary Purposes.--The 
     prohibition under subsection (c) shall not apply to the 
     obligation or expenditure of funds for the following limited 
     and temporary purposes:
       (1) To conduct targeted operations, limited in duration and 
     scope, against members of al Qaeda and affiliated 
     international terrorist organizations.
       (2) To provide security for United States Government 
     personnel and infrastructure.
       (3) To provide training to members of the Iraqi Security 
     Forces who have not been involved in sectarian violence or in 
     attacks upon the United States Armed Forces, provided that 
     such training does not involve members of the United States 
     Armed Forces taking part in combat operations or being 
     embedded with Iraqi forces.
       (4) To provide training, equipment, or other materiel to 
     members of the United States Armed Forces to ensure, 
     maintain, or improve their safety and security.
                                 ______
                                 
  SA 3876.  Mr. LEVIN (for himself, Mr. Reed, Mr. Voinovich, Mr. Hagel, 
Ms. Snowe, Mr. Reid, and Mr. Salazar, proposed an amendment to 
amendment

[[Page S15930]]

SA 3874 proposed by Mr. McConnell (for himself, Mr. Lieberman, Mr. 
Inouye, Mr. Stevens, Mr. Cochran, and Mr. Warner) to the bill H.R. 
2764, making appropriations for the Department of State, foreign 
operations, and related programs for the fiscal year ending September 
30, 2008, and for other purposes; as follows:

       At the appropriate place, insert the following:
       Sec.__. It is the sense of Congress that the missions of 
     the United States Armed Forces in Iraq should be transitioned 
     to the more limited set of missions laid out by the President 
     in his September 13, 2007, address to the Nation, that is, to 
     counterterrorism operations and training, equipping, and 
     supporting Iraqi forces, in addition to the necessary mission 
     of force protection, with the goal of completing that 
     transition by the end of 2008.
                                 ______
                                 
  SA 3877. Mr. REID proposed an amendment to the bill H.R. 2764, making 
appropriations for the Department of State, foreign operations, and 
related programs for the fiscal year ending September 30, 2008, and for 
other purposes; as follows:

       At the end of the amendment add the following:

     SECTION 1. SHORT TITLE, ETC.

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

Sec. 1. Short title, etc.

                     TITLE I--INDIVIDUAL TAX RELIEF

Sec. 101. Extension of alternative minimum tax relief for nonrefundable 
              personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption 
              amount.
Sec. 103. Increase of AMT refundable credit amount for individuals with 
              long-term unused credits for prior year minimum tax 
              liability, etc.
Sec. 104. Refundable child credit.

                      TITLE II--REVENUE PROVISIONS

    Subtitle A--Nonqualified Deferred Compensation From Certain Tax 
                          Indifferent Parties

Sec. 201. Nonqualified deferred compensation from certain tax 
              indifferent parties.

        Subtitle B--Codification of Economic Substance Doctrine

Sec. 211. Codification of economic substance doctrine.
Sec. 212. Penalties for underpayments.

                      Subtitle C--Other Provisions

Sec. 221. Delay in application of worldwide allocation of interest.
Sec. 222. Modification of penalty for failure to file partnership 
              returns.
Sec. 223. Penalty for failure to file S corporation returns.
Sec. 224. Increase in minimum penalty on failure to file a return of 
              tax.
Sec. 225. Time for payment of corporate estimated taxes.

                     TITLE I--INDIVIDUAL TAX RELIEF

     SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) (relating 
     to special rule for taxable years 2000 through 2006) is 
     amended--
       (1) by striking ``or 2006'' and inserting ``2006, or 
     2007'', and
       (2) by striking ``2006'' in the heading thereof and 
     inserting ``2007''.
       (b)  Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) (relating 
     to exemption amount) is amended--
       (1) by striking ``($62,550 in the case of taxable years 
     beginning in 2006)'' in subparagraph (A) and inserting 
     ``($66,250 in the case of taxable years beginning in 2007)'', 
     and
       (2) by striking ``($42,500 in the case of taxable years 
     beginning in 2006)'' in subparagraph (B) and inserting 
     ``($44,350 in the case of taxable years beginning in 2007)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 103. INCREASE OF AMT REFUNDABLE CREDIT AMOUNT FOR 
                   INDIVIDUALS WITH LONG-TERM UNUSED CREDITS FOR 
                   PRIOR YEAR MINIMUM TAX LIABILITY, ETC.

       (a) In General.--Paragraph (2) of section 53(e) is amended 
     to read as follows:
       ``(2) AMT refundable credit amount.--For purposes of 
     paragraph (1), the term `AMT refundable credit amount' means, 
     with respect to any taxable year, the amount (not in excess 
     of the long-term unused minimum tax credit for such taxable 
     year) equal to the greater of--
       ``(A) 50 percent of the long-term unused minimum tax credit 
     for such taxable year, or
       ``(B) the amount (if any) of the AMT refundable credit 
     amount determined under this paragraph for the taxpayer's 
     preceding taxable year.''.
       (b) Treatment of Certain Underpayments, Interest, and 
     Penalties Attributable to the Treatment of Incentive Stock 
     Options.--Section 53 is amended by adding at the end the 
     following new subsection:
       ``(f) Treatment of Certain Underpayments, Interest, and 
     Penalties Attributable to the Treatment of Incentive Stock 
     Options.--
       ``(1) Abatement.--Any underpayment of tax outstanding on 
     the date of the enactment of this subsection which is 
     attributable to the application of section 56(b)(3) for any 
     taxable year ending before January 1, 2007 (and any interest 
     or penalty with respect to such underpayment which is 
     outstanding on such date of enactment), is hereby abated. No 
     credit shall be allowed under this section with respect to 
     any amount abated under this paragraph.
       ``(2) Increase in credit for certain interest and penalties 
     already paid.--Any interest or penalty paid before the date 
     of the enactment of this subsection which would (but for such 
     payment) have been abated under paragraph (1) shall be 
     treated for purposes of this section as an amount of adjusted 
     net minimum tax imposed for the taxable year of the 
     underpayment to which such interest or penalty relates.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2006.
       (2) Abatement.--Section 53(f)(1) of the Internal Revenue 
     Code of 1986, as added by subsection (b), shall take effect 
     on the date of the enactment of this Act.

     SEC. 104. REFUNDABLE CHILD CREDIT.

       (a) Modification of Threshold Amount.--Clause (i) of 
     section 24(d)(1)(B) is amended by inserting ``($8,500 in the 
     case of taxable years beginning in 2008)'' after ``$10,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2007.

                      TITLE II--REVENUE PROVISIONS

    Subtitle A--Nonqualified Deferred Compensation From Certain Tax 
                          Indifferent Parties

     SEC. 201. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX 
                   INDIFFERENT PARTIES.

       (a) In General.--Subpart B of part II of subchapter E of 
     chapter 1 (relating to taxable year for which items of gross 
     income included) is amended by inserting after section 457 
     the following new section:

     ``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN 
                   TAX INDIFFERENT PARTIES.

       ``(a) In General.--Any compensation which is deferred under 
     a nonqualified deferred compensation plan of a nonqualified 
     entity shall be taken into account for purposes of this 
     chapter when there is no substantial risk of forfeiture of 
     the rights to such compensation.
       ``(b) Nonqualified Entity.--For purposes of this section, 
     the term `nonqualified entity' means--
       ``(1) any foreign corporation unless substantially all of 
     its income is--
       ``(A) effectively connected with the conduct of a trade or 
     business in the United States, or
       ``(B) subject to a comprehensive foreign income tax, and
       ``(2) any partnership unless substantially all of its 
     income is allocated to persons other than--
       ``(A) foreign persons with respect to whom such income is 
     not subject to a comprehensive foreign income tax, and
       ``(B) organizations which are exempt from tax under this 
     title.
       ``(c) Ascertainability of Amounts of Compensation.--
       ``(1) In general.--If the amount of any compensation is not 
     ascertainable at the time that such compensation is otherwise 
     to be taken into account under subsection (a)--
       ``(A) such amount shall be so taken into account when 
     ascertainable, and
       ``(B) the tax imposed under this chapter for the taxable 
     year in which such compensation is taken into account under 
     subparagraph (A) shall be increased by the sum of--
       ``(i) the amount of interest determined under paragraph 
     (2), and
       ``(ii) an amount equal to 20 percent of the amount of such 
     compensation.
       ``(2) Interest.--For purposes of paragraph (1)(B)(i), the 
     interest determined under this paragraph for any taxable year 
     is the amount of interest at the underpayment rate under 
     section 6621 plus 1 percentage point on the underpayments 
     that would have occurred had the deferred compensation been 
     includible in gross income for the taxable year in which 
     first deferred or, if later, the first taxable year in which 
     such deferred compensation is not subject to a substantial 
     risk of forfeiture.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Substantial risk of forfeiture.--
       ``(A) In general.--The rights of a person to compensation 
     shall be treated as subject to a substantial risk of 
     forfeiture only if such person's rights to such compensation 
     are conditioned upon the future performance of substantial 
     services by any individual.

[[Page S15931]]

       ``(B) Exception for compensation based on gain recognized 
     on an investment asset.--
       ``(i) In general.--To the extent provided in regulations 
     prescribed by the Secretary, if compensation is determined 
     solely by reference to the amount of gain recognized on the 
     disposition of an investment asset, such compensation shall 
     be treated as subject to a substantial risk of forfeiture 
     until the date of such disposition.
       ``(ii) Investment asset.--For purposes of clause (i), the 
     term `investment asset' means any single asset (other than an 
     investment fund or similar entity)--

       ``(I) acquired directly by an investment fund or similar 
     entity,
       ``(II) with respect to which such entity does not (nor does 
     any person related to such entity) participate in the active 
     management of such asset (or if such asset is an interest in 
     an entity, in the active management of the activities of such 
     entity), and
       ``(III) substantially all of any gain on the disposition of 
     which (other than such deferred compensation) is allocated to 
     investors in such entity.

       ``(iii) Coordination with special rule for short-term 
     deferrals of compensation.--Paragraph (3)(B) shall not apply 
     to any compensation to which clause (i) applies.
       ``(2) Comprehensive foreign income tax.--The term 
     `comprehensive foreign income tax' means, with respect to any 
     foreign person, the income tax of a foreign country if--
       ``(A) such person is eligible for the benefits of a 
     comprehensive income tax treaty between such foreign country 
     and the United States, or
       ``(B) such person demonstrates to the satisfaction of the 
     Secretary that such foreign country has a comprehensive 
     income tax.
     Such term shall not include any tax unless such tax includes 
     rules for the deductibility of deferred compensation which 
     are similar to the rules of this title.
       ``(3) Nonqualified deferred compensation plan.--
       ``(A) In general.--The term `nonqualified deferred 
     compensation plan' has the meaning given such term under 
     section 409A(d), except that such term shall include any plan 
     that provides a right to compensation based on the 
     appreciation in value of a specified number of equity units 
     of the service recipient.
       ``(B) Exception for short-term deferrals.--Compensation 
     shall not be treated as deferred for purposes of this section 
     if the service provider receives payment of such compensation 
     not later than 12 months after the end of the taxable year of 
     the service recipient during which the right to the payment 
     of such compensation is no longer subject to a substantial 
     risk of forfeiture.
       ``(4) Exception for certain compensation with respect to 
     effectively connected income.--In the case a foreign 
     corporation with income which is taxable under section 882, 
     this section shall not apply to compensation which, had such 
     compensation had been paid in cash on the date that such 
     compensation ceased to be subject to a substantial risk of 
     forfeiture, would have been deductible by such foreign 
     corporation against such income.
       ``(5) Application of rules.--Rules similar to the rules of 
     paragraphs (5) and (6) of section 409A(d) shall apply.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section, including regulations 
     disregarding a substantial risk of forfeiture in cases where 
     necessary to carry out the purposes of this section.''.
       (b) Conforming Amendment.--Section 26(b)(2) is amended by 
     striking ``and'' at the end of subparagraph (S), by striking 
     the period at the end of subparagraph (T) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(U) section 457A(c)(1)(B) (relating to ascertainability 
     of amounts of compensation).''.
       (c) Clerical Amendment.--The table of sections of subpart B 
     of part II of subchapter E of chapter 1 is amended by 
     inserting after the item relating to section 457 the 
     following new item:

``Sec. 457A. Nonqualified deferred compensation from certain tax 
              indifferent parties.''.

       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to amounts deferred which are attributable to services 
     performed after December 31, 2007.
       (2) Application to existing deferrals.--In the case of any 
     amount deferred to which the amendments made by this section 
     do not apply solely by reason of the fact that the amount is 
     attributable to services performed before January 1, 2008, to 
     the extent such amount is not includible in gross income in a 
     taxable year beginning before 2017, such amounts shall be 
     includible in gross income in the later of--
       (A) the last taxable year beginning before 2017, or
       (B) the taxable year in which there is no substantial risk 
     of forfeiture of the rights to such compensation (determined 
     in the same manner as determined for purposes of section 457A 
     of the Internal Revenue Code of 1986, as added by this 
     section).
       (3) Accelerated payments.--No later than 60 days after the 
     date of the enactment of this Act, the Secretary shall issue 
     guidance providing a limited period of time during which a 
     nonqualified deferred compensation arrangement attributable 
     to services performed on or before December 31, 2007, may, 
     without violating the requirements of section 409A(a) of the 
     Internal Revenue Code of 1986, be amended to conform the date 
     of distribution to the date the amounts are required to be 
     included in income.
       (4) Certain back-to-back arrangements.--If the taxpayer is 
     also a service recipient and maintains one or more 
     nonqualified deferred compensation arrangements for its 
     service providers under which any amount is attributable to 
     services performed on or before December 31, 2007, the 
     guidance issued under paragraph (3) shall permit such 
     arrangements to be amended to conform the dates of 
     distribution under such arrangement to the date amounts are 
     required to be included in the income of such taxpayer under 
     this subsection.
       (5) Accelerated payment not treated as material 
     modification.--Any amendment to a nonqualified deferred 
     compensation arrangement made pursuant to paragraph (3) or 
     (4) shall not be treated as a material modification of the 
     arrangement for purposes of section 409A of the Internal 
     Revenue Code of 1986.

        Subtitle B--Codification of Economic Substance Doctrine

     SEC. 211. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (p) as subsection (q) and by inserting after 
     subsection (o) the following new subsection:
       ``(p) Clarification of Economic Substance Doctrine.--
       ``(1) Application of doctrine.--In the case of any 
     transaction to which the economic substance doctrine is 
     relevant, such transaction shall be treated as having 
     economic substance only if--
       ``(A) the transaction changes in a meaningful way (apart 
     from Federal income tax effects) the taxpayer's economic 
     position, and
       ``(B) the taxpayer has a substantial purpose (apart from 
     Federal income tax effects) for entering into such 
     transaction.
       ``(2) Special rule where taxpayer relies on profit 
     potential.--
       ``(A) In general.--The potential for profit of a 
     transaction shall be taken into account in determining 
     whether the requirements of subparagraphs (A) and (B) of 
     paragraph (1) are met with respect to the transaction only if 
     the present value of the reasonably expected pre-tax profit 
     from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected.
       ``(B) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (A).
       ``(3) State and local tax benefits.--For purposes of 
     paragraph (1), any State or local income tax effect which is 
     related to a Federal income tax effect shall be treated in 
     the same manner as a Federal income tax effect.
       ``(4) Financial accounting benefits.--For purposes of 
     paragraph (1)(B), achieving a financial accounting benefit 
     shall not be taken into account as a purpose for entering 
     into a transaction if such transaction results in a Federal 
     income tax benefit.
       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Exception for personal transactions of individuals.--
     In the case of an individual, paragraph (1) shall apply only 
     to transactions entered into in connection with a trade or 
     business or an activity engaged in for the production of 
     income.
       ``(C) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(D) Determination of application of doctrine not 
     affected.--The determination of whether the economic 
     substance doctrine is relevant to a transaction shall be made 
     in the same manner as if this subsection had never been 
     enacted.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 212. PENALTIES FOR UNDERPAYMENTS.

       (a) Penalty for Underpayments Attributable to Transactions 
     Lacking Economic Substance.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (5) the following new paragraph:
       ``(6) Any disallowance of claimed tax benefits by reason of 
     a transaction lacking economic substance (within the meaning 
     of section 7701(p)) or failing to meet the requirements of 
     any similar rule of law.''.
       (2) Increased penalty for nondisclosed transactions.--
     Section 6662 is amended by

[[Page S15932]]

     adding at the end the following new subsection:
       ``(i) Increase in Penalty in Case of Nondisclosed 
     Noneconomic Substance Transactions.--
       ``(1) In general.--To the extent that a portion of the 
     underpayment to which this section applies is attributable to 
     one or more nondisclosed noneconomic substance transactions, 
     subsection (a) shall be applied with respect to such portion 
     by substituting `40 percent' for `20 percent'.
       ``(2) Nondisclosed noneconomic substance transactions.--For 
     purposes of this subsection, the term `nondisclosed 
     noneconomic substance transaction' means any portion of a 
     transaction described in subsection (b)(6) with respect to 
     which the relevant facts affecting the tax treatment are not 
     adequately disclosed in the return nor in a statement 
     attached to the return.
       ``(3) Special rule for amended returns.--Except as provided 
     in regulations, in no event shall any amendment or supplement 
     to a return of tax be taken into account for purposes of this 
     subsection if the amendment or supplement is filed after the 
     earlier of the date the taxpayer is first contacted by the 
     Secretary regarding the examination of the return or such 
     other date as is specified by the Secretary.''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) is amended--
       (A) by striking ``section 6662(h)'' and inserting 
     ``subsection (h) or (i) of section 6662'', and
       (B) by striking ``gross valuation misstatement penalty'' in 
     the heading and inserting ``certain increased underpayment 
     penalties''.
       (b) Reasonable Cause Exception Not Applicable to 
     Noneconomic Substance Transactions, Tax Shelters, and Certain 
     Large Corporations.--Subsection (c) of section 6664 is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively,
       (2) by striking ``paragraph (2)'' in paragraph (4), as so 
     redesignated, and inserting ``paragraph (3)'', and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception for noneconomic substance transactions, tax 
     shelters, and certain large corporations.--Paragraph (1) 
     shall not apply--
       ``(A) to any portion of an underpayment which is 
     attributable to one or more tax shelters (as defined in 
     section 6662(d)(2)(C)) or transactions described in section 
     6662(b)(6), and
       ``(B) to any taxpayer if such taxpayer is a specified large 
     corporation (as defined in section 6662(d)(2)(D)(ii)).''.
       (c) Application of Penalty for Erroneous Claim for Refund 
     or Credit to Noneconomic Substance Transactions.--Section 
     6676 is amended by redesignating subsection (c) as subsection 
     (d) and inserting after subsection (b) the following new 
     subsection:
       ``(c) Noneconomic Substance Transactions Treated as Lacking 
     Reasonable Basis.--For purposes of this section, any 
     excessive amount which is attributable to any transaction 
     described in section 6662(b)(6) shall not be treated as 
     having a reasonable basis.''.
       (d) Special Understatement Reduction Rule for Certain Large 
     Corporations.--
       (1) In general.--Paragraph (2) of section 6662(d) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Special reduction rule for certain large 
     corporations.--
       ``(i) In general.--In the case of any specified large 
     corporation--

       ``(I) subparagraph (B) shall not apply, and
       ``(II) the amount of the understatement under subparagraph 
     (A) shall be reduced by that portion of the understatement 
     which is attributable to any item with respect to which the 
     taxpayer has a reasonable belief that the tax treatment of 
     such item by the taxpayer is more likely than not the proper 
     tax treatment of such item.

       ``(ii) Specified large corporation.--

       ``(I) In general.--For purposes of this subparagraph, the 
     term `specified large corporation' means any corporation with 
     gross receipts in excess of $100,000,000 for the taxable year 
     involved.
       ``(II) Aggregation rule.--All persons treated as a single 
     employer under section 52(a) shall be treated as one person 
     for purposes of subclause (I).''.

       (2) Conforming amendment.--Subparagraph (C) of section 
     6662(d)(2) is amended by striking ``Subparagraph (B)'' and 
     inserting ``Subparagraphs (B) and (D)(i)(II)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                      Subtitle C--Other Provisions

     SEC. 221. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 
                   INTEREST.

       (a) In General.--Paragraphs (5)(D) and (6) of section 
     864(f) are each amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2017''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 222. MODIFICATION OF PENALTY FOR FAILURE TO FILE 
                   PARTNERSHIP RETURNS.

       (a) Extension of Time Limitation.--Subsection (a) of 
     section 6698 (relating to general rule) is amended by 
     striking ``5 months'' and inserting ``12 months''.
       (b) Increase in Penalty Amount.--Paragraph (1) of section 
     6698(b) is amended by striking ``$50'' and inserting 
     ``$100''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed after the date of 
     the enactment of this Act.

     SEC. 223. PENALTY FOR FAILURE TO FILE S CORPORATION RETURNS.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     ``SEC. 6699A. FAILURE TO FILE S CORPORATION RETURN.

       ``(a) General Rule.--In addition to the penalty imposed by 
     section 7203 (relating to willful failure to file return, 
     supply information, or pay tax), if any S corporation 
     required to file a return under section 6037 for any taxable 
     year--
       ``(1) fails to file such return at the time prescribed 
     therefor (determined with regard to any extension of time for 
     filing), or
       ``(2) files a return which fails to show the information 
     required under section 6037,
     such S corporation shall be liable for a penalty determined 
     under subsection (b) for each month (or fraction thereof) 
     during which such failure continues (but not to exceed 12 
     months), unless it is shown that such failure is due to 
     reasonable cause.
       ``(b) Amount Per Month.--For purposes of subsection (a), 
     the amount determined under this subsection for any month is 
     the product of--
       ``(1) $100, multiplied by
       ``(2) the number of persons who were shareholders in the S 
     corporation during any part of the taxable year.
       ``(c) Assessment of Penalty.--The penalty imposed by 
     subsection (a) shall be assessed against the S corporation.
       ``(d) Deficiency Procedures Not To Apply.--Subchapter B of 
     chapter 63 (relating to deficiency procedures for income, 
     estate, gift, and certain excise taxes) shall not apply in 
     respect of the assessment or collection of any penalty 
     imposed by subsection (a).''.
       (b) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6699A. Failure to file S corporation return.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed after the date of 
     the enactment of this Act.

     SEC. 224. INCREASE IN MINIMUM PENALTY ON FAILURE TO FILE A 
                   RETURN OF TAX.

       (a) In General.--Subsection (a) of section 6651 is amended 
     by striking ``$100'' in the last sentence and inserting 
     ``$150''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to returns the due date for the filing of which 
     (including extensions) is after December 31, 2007.

     SEC. 225. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under subparagraph (B) of section 401(1) of 
     the Tax Increase Prevention and Reconciliation Act of 2005 in 
     effect on the date of the enactment of this Act is increased 
     by 52.5 percentage points.
                                 ______
                                 
  SA 3878. Ms. SNOWE (for herself, Mr. Sununu, Mr. Dodd, Mr. Gregg, Ms. 
Collins, Mr. Lieberman, Mr. Reed, and Mr. Whitehouse) submitted an 
amendment intended to be proposed by her to the bill H.R. 2764, making 
appropriations for the Department of State, foreign operations, and 
related programs for the fiscal year ending September 30, 2008, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 14, beginning in line 23, strike ``fishery.'' and 
     insert ``fishery: Provided further, That, of the funds 
     provided, not less than $15,000,000 in the aggregate is 
     provided to Connecticut, Maine, New Hampshire, and Rhode 
     Island for the alleviation of economic impacts associated 
     with Amendment 13 and subsequent Framework adjustments, 
     including Framework 42.''.
                                 ______
                                 
  SA 3879. Mr. CARDIN (for himself, Mr. Warner, Ms. Mikulski, and Mr. 
Webb) submitted an amendment intended to be proposed by him to the bill 
H.R. 2764, making appropriations for the Department of State, foreign 
operations, and related programs for the fiscal year ending September 
30, 2008, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. __. NATIONAL CAPITAL TRANSPORTATION AMENDMENTS ACT OF 
                   2007.

       (a) Short Title; Findings.--
       (1) Short title.--This section may be cited as the 
     ``National Capital Transportation Amendments Act of 2007''.
       (2) Findings.--Congress finds as follows:
       (A) Metro, the public transit system of the Washington 
     metropolitan area, is essential for the continued and 
     effective performance of the functions of the Federal 
     Government, and for the orderly movement of people during 
     major events and times of regional or national emergency.
       (B) On 3 occasions, Congress has authorized appropriations 
     for the construction and capital improvement needs of the 
     Metrorail system.
       (C) Additional funding is required to protect these 
     previous Federal investments and

[[Page S15933]]

     ensure the continued functionality and viability of the 
     original 103-mile Metrorail system.
       (b) Federal Contribution for Capital Projects for 
     Washington Metropolitan Area Transit System.--The National 
     Capital Transportation Act of 1969 (sec. 9-1111.01 et seq., 
     D.C. Official Code) is amended by adding at the end the 
     following:


  ``AUTHORIZATION OF ADDITIONAL FEDERAL CONTRIBUTION FOR CAPITAL AND 
                    PREVENTIVE MAINTENANCE PROJECTS

       ``Sec. 18.  (a) Authorization.--Subject to the succeeding 
     provisions of this section, the Secretary of Transportation 
     is authorized to make grants to the Transit Authority, in 
     addition to the contributions authorized under sections 3, 
     14, and 17, for the purpose of financing in part the capital 
     and preventive maintenance projects included in the Capital 
     Improvement Program approved by the Board of Directors of the 
     Transit Authority.
       ``(b) Use of Funds.--The Federal grants made pursuant to 
     the authorization under this section shall be subject to the 
     following limitations and conditions:
       ``(1) The work for which such Federal grants are authorized 
     shall be subject to the provisions of the Compact (consistent 
     with the amendments to the Compact described in subsection 
     (d)).
       ``(2) Each such Federal grant shall be for 50 percent of 
     the net project cost of the project involved, and shall be 
     provided in cash from sources other than Federal funds or 
     revenues from the operation of public mass transportation 
     systems. Consistent with the terms of the amendment to the 
     Compact described in subsection (d)(1), any funds so provided 
     shall be solely from undistributed cash surpluses, 
     replacement or depreciation funds or reserves available in 
     cash, or new capital.
       ``(c) Applicability of Requirements For Mass Transportation 
     Capital Projects Receiving Funds Under Federal Transportation 
     Law.--Except as specifically provided in this section, the 
     use of any amounts appropriated pursuant to the authorization 
     under this section shall be subject to the requirements 
     applicable to capital projects for which funds are provided 
     under chapter 53 of title 49, United States Code, except to 
     the extent that the Secretary of Transportation determines 
     that the requirements are inconsistent with the purposes of 
     this section.
       ``(d) Amendments to Compact.--No amounts may be provided to 
     the Transit Authority pursuant to the authorization under 
     this section until the Transit Authority notifies the 
     Secretary of Transportation that each of the following 
     amendments to the Compact (and any further amendments which 
     may be required to implement such amendments) have taken 
     effect:
       ``(1)(A) An amendment requiring that all payments by the 
     local signatory governments for the Transit Authority for the 
     purpose of matching any Federal funds appropriated in any 
     given year authorized under subsection (a) for the cost of 
     operating and maintaining the adopted regional system are 
     made from amounts derived from dedicated funding sources.
       ``(B) For purposes of this paragraph, the term `dedicated 
     funding source' means any source of funding which is 
     earmarked or required under State or local law to be used to 
     match Federal appropriations authorized under this Act for 
     payments to the Transit Authority.
       ``(2) An amendment establishing the Office of the Inspector 
     General of the Transit Authority in accordance with section 3 
     of the National Capital Transportation Amendments Act of 
     2007.
       ``(3) An amendment expanding the Board of Directors of the 
     Transit Authority to include 4 additional Directors appointed 
     by the Administrator of General Services, of whom 2 shall be 
     nonvoting and 2 shall be voting, and requiring one of the 
     voting members so appointed to be a regular passenger and 
     customer of the bus or rail service of the Transit Authority.
       ``(e) Amount.--There are authorized to be appropriated to 
     the Secretary of Transportation for grants under this section 
     an aggregate amount not to exceed $1,500,000,000 to be 
     available in increments over 10 fiscal years beginning in 
     fiscal year 2009, or until expended.
       ``(f) Availability.--Amounts appropriated pursuant to the 
     authorization under this section--
       ``(1) shall remain available until expended; and
       ``(2) shall be in addition to, and not in lieu of, amounts 
     available to the Transit Authority under chapter 53 of title 
     49, United States Code, or any other provision of law.
       ``(g) Access to Wireless Services in Metrorail System.--
       ``(1) Requiring transit authority to provide access to 
     service.--No amounts may be provided to the Transit Authority 
     pursuant to the authorization under this section unless the 
     Transit Authority ensures that customers of the rail service 
     of the Transit Authority have access within the rail system 
     to services provided by any licensed wireless provider that 
     notifies the Transit Authority (in accordance with such 
     procedures as the Transit Authority may adopt) of its intent 
     to offer service to the public, in accordance with the 
     following timetable:
       ``(A) Not later than 1 year after the date of the enactment 
     of the National Capital Transportation Amendments Act of 
     2007, in the 20 underground rail station platforms with the 
     highest volume of passenger traffic.
       ``(B) Not later than 4 years after such date, throughout 
     the rail system.
       ``(2) Access of wireless providers to system for upgrades 
     and maintenance.--No amounts may be provided to the Transit 
     Authority pursuant to the authorization under this section 
     unless the Transit Authority ensures that each licensed 
     wireless provider who provides service to the public within 
     the rail system pursuant to paragraph (1) has access to the 
     system on an ongoing basis (subject to such restrictions as 
     the Transit Authority may impose to ensure that such access 
     will not unduly impact rail operations or threaten the safety 
     of customers or employees of the rail system) to carry out 
     emergency repairs, routine maintenance, and upgrades to the 
     service.
       ``(3) Permitting reasonable and customary charges.--Nothing 
     in this subsection may be construed to prohibit the Transit 
     Authority from requiring a licensed wireless provider to pay 
     reasonable and customary charges for access granted under 
     this subsection.
       ``(4) Reports.--Not later than 1 year after the date of the 
     enactment of the National Capital Transportation Amendments 
     Act of 2007, and each of the 3 years thereafter, the Transit 
     Authority 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 implementation of this 
     subsection.
       ``(5) Definition.--In this subsection, the term `licensed 
     wireless provider' means any provider of wireless services 
     who is operating pursuant to a Federal license to offer such 
     services to the public for profit.''.
       (c) Washington Metropolitan Area Transit Authority 
     Inspector General.--
       (1) Establishment of office.--
       (A) In general.--The Washington Metropolitan Area Transit 
     Authority (referred to in this subsection as the ``Transit 
     Authority'') shall establish in the Transit Authority the 
     Office of the Inspector General (referred to in this 
     subsection as the ``Office''), headed by the Inspector 
     General of the Transit Authority (referred to in this 
     subsection as the ``Inspector General'').
       (B) Definition.--In subparagraph (A), the ``Washington 
     Metropolitan Area Transit Authority'' means the Authority 
     established under Article III of the Washington Metropolitan 
     Area Transit Authority Compact (Public Law 89-774).
       (2) Inspector general.--
       (A) Appointment.--The Inspector General shall be appointed 
     by the vote of a majority of the Board of Directors of the 
     Transit Authority, and shall be appointed without regard to 
     political affiliation and solely on the basis of integrity 
     and demonstrated ability in accounting, auditing, financial 
     analysis, law, management analysis, public administration, or 
     investigations, as well as familiarity or experience with the 
     operation of transit systems.
       (B) Term of service.--The Inspector General shall serve for 
     a term of 5 years, and an individual serving as Inspector 
     General may be reappointed for not more than 2 additional 
     terms.
       (C) Removal.--The Inspector General may be removed from 
     office prior to the expiration of his term only by the 
     unanimous vote of all of the members of the Board of 
     Directors of the Transit Authority, and the Board shall 
     communicate the reasons for any such removal to the Governor 
     of Maryland, the Governor of Virginia, the Mayor of the 
     District of Columbia, the chair of the Committee on 
     Government Reform of the House of Representatives, and the 
     chair of the Committee on Homeland Security and Governmental 
     Affairs of the Senate.
       (3) Duties.--
       (A) Applicability of duties of inspector general of 
     executive branch establishment.--The Inspector General shall 
     carry out the same duties and responsibilities with respect 
     to the Transit Authority as an Inspector General of an 
     establishment carries out with respect to an establishment 
     under section 4 of the Inspector General Act of 1978 (5 
     U.S.C. App. 4), under the same terms and conditions which 
     apply under such section.
       (B) Conducting annual audit of financial statements.--The 
     Inspector General shall be responsible for conducting the 
     annual audit of the financial accounts of the Transit 
     Authority, either directly or by contract with an independent 
     external auditor selected by the Inspector General.
       (C) Reports.--
       (i) Semiannual reports to transit authority.--The Inspector 
     General shall prepare and submit semiannual reports 
     summarizing the activities of the Office in the same manner, 
     and in accordance with the same deadlines, terms, and 
     conditions, as an Inspector General of an establishment under 
     section 5 of the Inspector General Act of 1978 (5 U.S.C. App. 
     5). For purposes of applying section 5 of such Act to the 
     Inspector General, the Board of Directors of the Transit 
     Authority shall be considered the head of the establishment, 
     except that the Inspector General shall transmit to the 
     General Manager of the Transit Authority a copy of any report 
     submitted to the Board pursuant to this paragraph.
       (ii) Annual reports to local signatory governments and 
     congress.--Not later than January 15 of each year, the 
     Inspector General shall prepare and submit a report 
     summarizing the activities of the Office during the previous 
     year, and shall submit such reports to the Governor of 
     Maryland, the Governor of Virginia, the Mayor of the District 
     of Columbia, the chair of the Committee on

[[Page S15934]]

     Government Reform of the House of Representatives, and the 
     chair of the Committee on Homeland Security and Governmental 
     Affairs of the Senate.
       (D) Investigations of complaints of employees and 
     members.--
       (i) Authority.--The Inspector General may receive and 
     investigate complaints or information from an employee or 
     member of the Transit Authority concerning the possible 
     existence of an activity constituting a violation of law, 
     rules, or regulations, or mismanagement, gross waste of 
     funds, abuse of authority, or a substantial and specific 
     danger to the public health and safety.
       (ii) Nondisclosure.--The Inspector General shall not, after 
     receipt of a complaint or information from an employee or 
     member, disclose the identity of the employee or member 
     without the consent of the employee or member, unless the 
     Inspector General determines such disclosure is unavoidable 
     during the course of the investigation.
       (iii) Prohibiting retaliation.--An employee or member of 
     the Transit Authority who has authority to take, direct 
     others to take, recommend, or approve any personnel action, 
     shall not, with respect to such authority, take or threaten 
     to take any action against any employee or member as a 
     reprisal for making a complaint or disclosing information to 
     the Inspector General, unless the complaint was made or the 
     information disclosed with the knowledge that it was false or 
     with willful disregard for its truth or falsity.
       (E) Independence in carrying out duties.--Neither the Board 
     of Directors of the Transit Authority, the General Manager of 
     the Transit Authority, nor any other member or employee of 
     the Transit Authority may prevent or prohibit the Inspector 
     General from carrying out any of the duties or 
     responsibilities assigned to the Inspector General under this 
     subsection.
       (4) Powers.--
       (A) In general.--The Inspector General may exercise the 
     same authorities with respect to the Transit Authority as an 
     Inspector General of an establishment may exercise with 
     respect to an establishment under section 6(a) of the 
     Inspector General Act of 1978 (5 U.S.C. App. 6(a)), other 
     than paragraphs (7), (8), and (9) of such section.
       (B) Staff.--
       (i) Assistant inspector generals and other staff.--The 
     Inspector General shall appoint and fix the pay of--

       (I) an Assistant Inspector General for Audits, who shall be 
     responsible for coordinating the activities of the Inspector 
     General relating to audits;
       (II) an Assistant Inspector General for Investigations, who 
     shall be responsible for coordinating the activities of the 
     Inspector General relating to investigations; and
       (III) such other personnel as the Inspector General 
     considers appropriate.

       (ii) Independence in appointing staff.--No individual may 
     carry out any of the duties or responsibilities of the Office 
     unless the individual is appointed by the Inspector General, 
     or provides services procured by the Inspector General, 
     pursuant to this subparagraph. Nothing in this clause may be 
     construed to prohibit the Inspector General from entering 
     into a contract or other arrangement for the provision of 
     services under this subsection.
       (iii) Applicability of transit system personnel rules.--
     None of the regulations governing the appointment and pay of 
     employees of the Transit System shall apply with respect to 
     the appointment and compensation of the personnel of the 
     Office, except to the extent agreed to by the Inspector 
     General. Nothing in the previous sentence may be construed to 
     affect clauses (i) and (ii).
       (C) Equipment and supplies.--The General Manager of the 
     Transit Authority shall provide the Office with appropriate 
     and adequate office space, together with such equipment, 
     supplies, and communications facilities and services as may 
     be necessary for the operation of the Office, and shall 
     provide necessary maintenance services for such office space 
     and the equipment and facilities located therein.
       (5) Transfer of functions.--To the extent that any office 
     or entity in the Transit Authority prior to the appointment 
     of the first Inspector General under this subsection carried 
     out any of the duties and responsibilities assigned to the 
     Inspector General under this subsection, the functions of 
     such office or entity shall be transferred to the Office upon 
     the appointment of the first Inspector General under this 
     subsection.
       (d) Study and Report by Comptroller General.--
       (1) Study.--The Comptroller General shall conduct a study 
     on the use of the funds provided under section 18 of the 
     National Capital Transportation Act of 1969 (as added by this 
     section).
       (2) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Comptroller General shall submit a 
     report to the Committee on Government Reform of the House of 
     Representatives and the Committee on Homeland Security and 
     Governmental Affairs of the Senate on the study conducted 
     under paragraph (1).
                                 ______
                                 
  SA 3880. Mr. PRYOR (for Mr. Biden) proposed an amendment to the 
resolution S. Res. 279, expressing the sense of the Senate regarding 
the 125th anniversary of the 1882 Treaty of Peace, Amity, Commerce and 
Navigation between the Kingdom and Chosun (Korea) and the United 
States; as follows:

       On page 4, strike lines 4 through 10 and insert the 
     following:
       ``(2) the economic relationship, highlighting the vibrancy 
     and diversity of the common interests of the United States 
     and the Republic of Korea, should be broadened and 
     deepened;''.
       On page 5, lines 4 and 5, strike ``and support for 
     peacekeeping'' and insert ``, support for peacekeeping, and 
     protection of the environment''.
                                 ______
                                 
  SA 3881. Mr. PRYOR (for Mr. Nelson of Florida) proposed an amendment 
to the concurrent resolution S. Con. Res. 53, condemning the kidnapping 
and hostage-taking of 3 United States citizens for over 4 years by the 
Revolutionary Armed Forces of Colombia (FARC), and demanding their 
immediate and unconditional release; as follows:

       Strike ``on July 25, 2003'' and all that follows in the 
     eighth whereas clause of the preamble and insert ``in a 
     videotape seized by the Government of Colombia and aired on 
     November 30, 2007;''.
                                 ______
                                 
  SA 3882. Mr. PRYOR (for Mr. Feingold) proposed an amendment to the 
bill S. 2135, to prohibit the recruitment or use of child soldiers, to 
designate persons who recruit or use child soldiers as inadmissible 
aliens, to allow the deportation of persons who recruit or use child 
soldiers, and for other purposes; as follows:

       On page 4, line 7, insert after ``state-sponsored'' the 
     following: ``, excluding any group assembled solely for non-
     violent political association''.
                                 ______
                                 
  SA 3883. Mr. PRYOR (for Mr. Biden) proposed an amendment to the 
resolution S. Res. 279, expressing the sense of the Senate regarding 
the 125th anniversary of the 1882 Treaty of Peace, Amity, Commerce and 
Navigation between the Kingdom and Chosun (Korea) and the United 
States; as follows:

       On page 3, strike ``Whereas the Free Trade Agreement'' and 
     all that follows through ``both countries;''.

                          ____________________